Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Investments (Tables)

v3.23.2
Fair Value of Investments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value of Investments [Abstract]  
Schedule of Assets Measured at Fair Value The following table presents information about the Company’s assets measured at fair value as of June 30, 2023 and December 31, 2022, respectively:
    As of June 30, 2023  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
-
     $
     -
     $ 12,955,210     $ 12,955,210  
Second Lien Loans    
-
      
-
       11,954,872       11,954,872  
Equity    
-
      
-
       6,543,192       6,543,192  
Total Portfolio Investments    
-
      
-
       31,453,274       31,453,274  
Total Investments   $
-
     $
-
     $ 31,453,274     $ 31,453,274  
    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 Changes in Level 3 assets measured at fair value for the six months ended June 30, 2023 are as follows:
   

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    
-
       22,500      
-
      
-
       22,500  
Change in unrealized gain (loss) on investments     (189,757 )     955,725      
-
       100,718       866,686
Fair value at end of period   $ 12,955,210     $ 11,954,872     $
-
     $ 6,543,192     $ 31,453,274  
Change in unrealized gain (loss) on
   Level 3 investments still held as of
   June 30, 2023		   $ (189,757 )   $ 955,725     $
-
     $ 100,718     $ 866,686  

 

Changes in Level 3 assets measured at fair value for the year ended December 31, 2022 are as follows:
   

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 The following table provides quantitative information regarding Level 3 fair value measurements as of June 30, 2023:
Description   Fair Value     Valuation Technique (1)     Unobservable  Inputs   Range (Average (2))   
                     
First Lien Loans   $ 12,780,664     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     12,780,664                  
                         
Second Lien Loans     11,954,872      Enterprise Value Coverage    EV / LTM Revenue     0.38x-0.43x (0.41x)    
                EV / PF EBITDA     5.50x-6.50x (6.00x)    
Total     11,954,872                  
                         
Unsecured Loans    
-
     Enterprise Value Coverage   EV / LTM Revenue     0.38x-0.43x (0.41x)    
Total    
-
                  
                         
Equity     4,935,020     Enterprise Value Coverage   EV / LTM Revenue     0.38x-0.43x (0.41x)    
                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)    
      1,606,972     Appraisal Value Coverage   Cost Approach     $1,404,000-$1,716,000 ($1,560,000)    
                Sales Comparison Approach     $1,458,000-$1,782,000 ($1,620,000)    
Total     6,541,992                  
Total Level 3 Investments   $ 31,277,528                  
(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.

 

The following table provides quantitative information regarding Level 3 fair value measurements as of December 31, 2022:
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