Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Investments (Tables)

v3.22.2.2
Fair Value of Investments (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value of Investments [Abstract]  
Schedule of company’s assets measured at fair value
    As of September 30, 2022  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
    -
     $
    -
     $ 23,567,755     $ 23,567,755  
Second Lien Loans    
-
      
-
       11,364,044       11,364,044  
Equity    
-
      
-
       5,840,260       5,840,260  
Total Portfolio Investments    
-
      
-
       40,772,059       40,772,059  
Total Investments   $
 
     $
-
     $ 40,772,059     $ 40,772,059  

 

    As of December 31, 2021  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                                
First Lien Loans   $
    -
     $
    -
     $ 19,400,200     $ 19,400,200  
Second Lien Loans    
-
      
-
       11,435,134       11,435,134  
Equity    
-
      
-
       3,471,758       3,471,758  
Total Portfolio Investments    
-
      
-
       34,307,092       34,307,092  
Total Investments   $
    $
-
     $ 34,307,092     $ 34,307,092  

  
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   $ 19,400,200     $ 11,435,134     $
        -
     $ 3,471,758     $ 34,307,092  
Amortization    
-
      
-
      
-
      
-
      
-
  
Purchases of investments    
-
      
-
      
-
      
-
      
-
  
Sales or repayment of investments    
-
      
-
      
-
      
-
      
-
  
Payment-in-kind interest    
-
      
-
      
-
      
-
      
-
  
Change in unrealized gain (loss) on investments     4,009,396       87,069      
-
       2,368,502       6,464,967  
Transfers in/out (1)     158,159       (158,159 )    
 
      
 
      
 
  
Fair value at end of period   $ 23,567,755     $ 11,364,044     $
-
     $ 5,840,260     $ 40,772,059  
Change in unrealized gain (loss) on Level 3 investments still held as of September 30, 2022   $ 4,167,555     $ (71,090 )   $
-
     $ 2,368,502     $ 6,464,967  

   

First Lien

Loans

     Second Lien Loans     Unsecured Loans     Equity     Total  
Fair value at beginning of year   $ 14,671,435     $ 5,235,708     $
      -
     $ 1,659,880     $ 21,567,023  
Purchases of investments    
-
      
-
      
-
      
-
      
-
  
Sales or repayment of investments     (230,570 )    
-
      
-
      
-
       (230,570 )
Payment-in-kind interest     97,401      
-
      
-
      
-
       97,401  
Realized gain (loss) on investments    
-
      
-
      
-
      
-
      
-
  
Change in unrealized gain (loss) on investments     4,861,934       6,199,426      
-
       1,811,878       12,873,238  
Transfer due to restructuring    
-
      
-
      
-
      
-
      
-
  
Fair value at end of year   $ 19,400,200     $ 11,435,134     $
-
     $ 3,471,758     $ 34,307,092  
Change in unrealized gain (loss) on Level 3 investments still held as of December 31, 2021   $ 4,861,934     $ 6,199,426     $
-
     $ 1,811,878     $ 12,873,238  

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

Unobservable

Inputs

   Range (Average (2))
                     
First Lien Loans   $ 11,372,699       Settlement Recovery     Market Yield   7.61%-9.85% (8.73%)
      11,988,243       Enterprise Value Coverage     EV / Store level EBITDAR   4.75x-5.25x (5.00x)
                    Location Value   $1,450,000-$1,650,000 ($1,550,000)
Total     23,360,942                  
                         
Second Lien Loans     11,364,044       Enterprise Value Coverage     EV / LTM Revenue   0.40x-0.45x (0.43x)
                    EV / PF EBITDA   5.25x-6.25x (5.75x)
Total     11,364,044                  
                         
Unsecured Loans    
-
       Enterprise Value Coverage     EV / LTM Revenue   0.40x-0.45x (0.43x)
Total    
-
                  
                         
Equity     4,113,013       Enterprise Value Coverage     EV / LTM Revenue   0.40x-0.45x (0.43x)
                    EV / PF EBITDA   5.25x-6.25x (5.75x)
                    EV / Store level EBITDAR   4.25x-4.75x (5.00x)
                    Location Value   $1,450,000-$1,650,000 ($1,550,000)
      1,726,047       Appraisal Value Coverage     Cost Approach   $1,467,000-$1,793,000 ($1,630,000)
                    Sales Comparison Approach   $1,404,000-$1,716,000 ($1,560,000)
Total     5,839,060                  
Total Level 3 Investments   $ 40,564,046                  

 

Description   Fair Value     Valuation Technique(1)  

Unobservable Inputs

   Range (Average (2))
                   
First Lien Loans   $ 4,854,720     Discounted Cash Flow   Discount Rate   55.00%-65.00% (60.00%)
            Judgment Recovery   Recovery Rate   40.00%-60.00% (50.00%)
            Judgment + Penalty Recovery   Recovery Rate   40.00%-60.00% (50.00%)
            Zero Recovery   Recovery Rate   0.00%-0.00% (0.00%)
      14,545,480     Enterprise Value Coverage   EV / Store level EBITDAR   4.75x-5.25x (5.00x)
                Location Value   $1,275,000-$1,375,000 ($1,325,000)
Total     19,400,200              
                     
Second Lien Loans     11,435,134     Enterprise Value Coverage   EV / RR Revenue Multiple   0.48x-0.53x (0.50x)
                EV / 2021 Revenue   0.60-0.70x (0.65x)
                EV / CFY EBITDA   7.50x-8.50x (8.00x)
                EV / CFY Revenue   0.95x-1.05x (1.00x)
            Pending Sale   Approach Weight   35.40%-35.40% (35.40%)
Total     11,435,134              
                     
Unsecured Loans     -     Enterprise Value Coverage   EV / RR Revenue Multiple   0.48x-0.53x (0.50x)
Total    
-
              
                     
Equity     1,725,445     Enterprise Value Coverage   EV / RR Revenue Multiple   0.48x-0.53x (0.50x)
                EV / 2021 Revenue   0.60x-0.70x (0.65x)
                EV / CFY EBITDA   7.50x-8.50x (8.00x)
                EV / CFY Revenue   0.95x-1.05x (1.00x)
                EV / STORE LEVEL EBITDAR   4.75x-5.25x (5.00x)
                Location Value   $1,275,000-$1,375,000 ($1,325,000)
            Pending Sale   Approach Weight   35.40%-35.40% (35.40%)
      1,745,113     Appraisal Value Coverage   Cost Approach   $1,458,000-$1,782,000 ($1,620,000)
                Sales Comparison Approach   $1,350,000-$1,650,000 ($1,500,000)
Total     3,470,558              
Total Level 3 Investments   $ 34,305,892