Annual report pursuant to Section 13 and 15(d)

Fair Value of Investments (Tables)

v3.24.1
Fair Value of Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value of Investments [Abstract]  
Schedule of Company’s Assets Measured at Fair Value The following tables presents information about the Company’s assets measured at fair value as of December 31, 2023 and 2022:
    As of December 31, 2023  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
       -
     $
        -
     $ 12,301,440     $ 12,301,440  
Second Lien Loans    
-
      
-
       11,652,480       11,652,480  
Equity    
-
      
-
       5,781,033       5,781,033  
Total Portfolio Investments    
-
      
-
       29,734,953       29,734,953  
Total Investments   $
-
     $
-
     $ 29,734,953     $ 29,734,953  
    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 year ended December 31, 2023 are as follows:
    First Lien
Loans		     Second Lien
Loans		     Unsecured
Loans		     Equity     Total  
Fair value at beginning of year   $ 13,144,967     $ 10,976,647     $
           -
     $ 6,442,474     $ 30,564,088  
Sales or repayment of investments    
-
      
-
      
-
      
-
      
-
  
Payment-in-kind interest    
-
       166,339      
-
      
-
       166,339  
Realized loss on investments    
-
      
-
      
-
       (1,200 )     (1,200 )
Change in unrealized gain (loss) on investments     (843,527 )     509,494      
-
       (660,241 )     (994,274 )
Transfers in/out    
-
      
-
      
-
      
-
      
-
  
Fair value at end of year   $ 12,301,440     $ 11,652,480     $
-
     $ 5,781,033     $ 29,734,953  
Change in unrealized gain (loss) on Level 3 investments still held as of December 31, 2023   $ (843,527 )   $ 509,494     $
-
     $ (660,241 )   $ (994,274 )
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 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  
Transfer due to restructuring     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 December 31, 2023:
Description   Fair Value     Valuation Technique (1)   Unobservable
Inputs		   Range (Average (2))
First Lien Loans   $ 12,128,041     Enterprise Value Coverage   EV / Store level EBITDAR   5.25x-5.75x (5.50x)
                Location Value   $1,425,000-$1,625,000 (1,525,000)
Total     12,128,041              
                     
Second Lien Loans     11,652,480     Enterprise Value Coverage   EV / Run Rate Revenue    0.37x-0.42x (0.39x)
                EV / PF EBITDA   5.50x-6.50x (6.00x)
Total     11,652,480              
                     
Unsecured Loans    
-
     Enterprise Value Coverage   EV / Run Rate Revenue   0.37x-0.42x (0.39x)
Total    
-
              
                     
Equity     4,237,192     Enterprise Value Coverage   EV / Run Rate Revenue   0.37x-0.42x (0.39x)
                EV / PF EBITDA   5.50x-6.50x (6.00x)
                EV / Store level EBITDAR   5.25x-5.75x (5.50x)
                Location Value   $1,425,000-$1,625,000 ($1,525,000)
                Cost Approach   $1,413,000-$1,727,000 (1,570,000)
      1,543,841     Appraisal Value Coverage   Sales Comparison Approach   $1,440,000-$1,760,000 ($1,600,000)
Total     5,781,033              
Total Level 3 Investments   $ 29,561,554              
(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              
(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.