Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Investments (Tables)

v3.23.1
Fair Value of Investments (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value of Investments [Abstract]  
Schedule of assets measured at fair value
    As of March 31, 2023  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
-
     $
-
     $ 12,366,812     $ 12,366,812  
Second Lien Loans    
-
      
-
       10,419,814       10,419,814  
Equity    
-
      
-
       6,483,430       6,483,430  
Total Portfolio Investments    
-
      
-
       29,270,056       29,270,056  
Total Investments   $
-
     $
-
     $ 29,270,056     $ 29,270,056  
                                 
      As of December 31, 2022  
      Level 1       Level 2       Level 3       Total  
Portfolio Investments                                
First Lien Loans   $
-
     $
-
     $ 13,144,967     $ 13,144,967  
Second Lien Loans    
-
      
-
       10,976,647       10,976,647  
Equity    
-
      
-
       6,442,474       6,442,474  
Total Portfolio Investments    
-
      
-
       30,564,088       30,564,088  
Total Investments   $
-
     $
-
     $ 30,564,088     $ 30,564,088  

 
Schedule of changes in level 3 assets measured at fair value
   

First Lien

Loans

     Second Lien Loans     Unsecured Loans     Equity     Total  
Fair value at beginning of period   $ 13,144,967     $ 10,976,647     $
          -
     $ 6,442,474     $ 30,564,088  
Purchases of investments    
-
      
-
      
-
      
-
      
-
  
Sales or repayment of investments    
-
      
-
      
-
      
-
      
-
  
Payment-in-kind interest    
-
      
-
      
-
      
-
      
-
  
Change in unrealized gain (loss) on investments     (778,155 )     (556,833 )    
-
       40,956       (1,294,032 )
Fair value at end of period   $ 12,366,812     $ 10,419,814     $
-
     $ 6,483,430     $ 29,270,056  
Change in unrealized gain (loss) on Level 3 investments still held as of March 31, 2023   $ (778,155 )   $ (556,833 )   $
-
     $ 40,956     $ (1,294,032 )

 

   

First Lien

Loans

     Second Lien Loans     Unsecured Loans     Equity     Total  
Fair value at beginning of year   $ 19,400,200     $ 11,435,134     $
         -
     $ 3,471,758     $ 34,307,092  
Purchases of investments    
-
      
-
      
-
      
-
      
-
  
Sales or repayment of investments     (11,168,883 )    
-
      
-
      
-
       (11,168,883 )
Payment-in-kind interest    
-
      
-
      
-
      
-
      
-
  
Realized gain (loss) on investments     4,368,297      
-
      
-
      
-
       4,368,297  
Change in unrealized gain (loss) on investments     387,194       (300,328 )    
-
       2,970,716       3,057,582  
Transfers in/out     158,159       (158,159 )    
-
      
-
      
-
  
Fair value at end of year   $ 13,144,967     $ 10,976,647     $
-
     $ 6,442,474     $ 30,564,088  
Change in unrealized gain (loss) on Level 3 investments still held as of December 31, 2022   $ (1,400,513 )   $ (458,487 )   $
-
     $ 2,970,716     $ 1,111,716  

 
Schedule of quantitative information regarding Level 3 fair value measurements
Description   Fair Value     Valuation Technique (1)  

Unobservable

Inputs

   Range (Average)(2)  
First Lien Loans   $ 12,190,857     Enterprise Value Coverage   EV / Store level EBITDAR     5.25x-5.75x (5.50x)  
                Location Value     $1,475,000-$1,675,000 ($1,575,000)  
Total     12,190,857                  
                         
Second Lien Loans     10,419,814      Enterprise Value Coverage    EV / LTM Revenue    

 

0.38x-0.43x (0.42x)

  
                EV / PF EBITDA     5.50x-6.50x (6.00x)  
Total     10,419,814                  
                         
Unsecured Loans    
-
     Enterprise Value Coverage   EV / LTM Revenue     0.38x-0.43x (0.42x)  
Total    
-
                  
                         
Equity     4,822,977     Enterprise Value Coverage   EV / LTM Revenue     0.38x-0.43x (0.42x)  
                EV / PF EBITDA     5.50x-6.50x (6.00x)  
                EV / Store level EBITDAR     5.25x-5.75x (5.50x)  
                Location Value     $1,475,000-$1,675,000 ($1,575,000)  
      1,659,253     Appraisal Value Coverage
  Cost Approach
    $1,440,000-$1,760,000 ($1,600,000)  
                Sales Comparison Approach     $1,458,000-$1,782,000 ($1,620,000)  
Total     6,482,230                  
Total Level 3 Investments   $ 29,092,901                  

 

(1) There were no changes in the valuation technique for the Company's investments from the prior quarter.
(2) The average represents the arithmetic average of the unobservable inputs and is not weighted by the relative fair value.

 

Description   Fair Value     Valuation Technique (1)   Unobservable Inputs   Range (Average (2))  
First Lien Loans   $ 12,959,968     Enterprise Value Coverage   EV / Store level EBITDAR     5.00x-5.50x (5.25x)  
                Location Value     $1,450,000-$1,650,000 ($1,550,000)  
Total     12,959,968                  
                         
Second Lien Loans     10,976,647      Enterprise Value Coverage    EV / LTM Revenue    

 

0.39x-0.44x (0.42x)

  
                EV / PF EBITDA     5.50x-6.50x (6.00x)  
Total     10,976,647                  
                         
Unsecured Loans    
-
     Enterprise Value Coverage   EV / LTM Revenue     0.39x-0.44x (0.42x)  
Total    
-
                  
                         
Equity     4,742,945     Enterprise Value Coverage   EV / LTM Revenue     0.39x-0.44x (0.42x)  
                EV / PF EBITDA     5.50x-6.50x (6.00x)  
                EV / Store level EBITDAR     5.00x-5.50x (5.25x)  
                Location Value     $1,450,000-$1,650,000 ($1,550,000)  
      1,698,329     Appraisal Value Coverage
  Cost Approach
    $1,449,000-$1,771,000 ($1,610,000)  
                Sales Comparison Approach     $1,431,000-$1,749,000 ($1,590,000)  
Total     6,441,274                  
Total Level 3 Investments   $ 30,377,889