AFC Gamma, Inc. (“AFCG”) is a real estate investment trust (“REIT”) with a US$ ~400 million loan portfolio concentrated amongst multi-state cannabis operators collateralized by cultivation facilities, cannabis licenses & real estate. AFCG attracted conservative investor interest using a mid-teens yield shareholder dividends. AFCG is 100% externally managed by AFC Management (“AFCM”), a related party privately owned by AFCG’s largest shareholder, CEO & Chairman Leonard M. Tannenbaum (“Tannenbaum”).We think that AFCG materially overstated AFCG’s investment income and understated portfolio losses in order to pay out exorbitant fees to Tannenbaum’s AFCM at the expense of AFCG shareholders. Non-Cash Payment-In-Kind Revenues: PIK interest was substituted for cash in order to artificially inflate AFCG net income. In the past 3 years, AFCG increasingly recorded payment-in-kind interest income (“PIK interest”) instead of collecting cash interest payments from its loan portfolio borrowers. In 2022, AFCG’s non-cash PIK interest was 10% of net income. As of 2Q’23, PIK interest accounted for 37% of AFCG net income.