Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Investments (Tables)

Fair Value of Investments (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value of Investments [Abstract]

Schedule of Company’s Assets Measured at Fair Value

The following tables present information about the Company’s assets measured at fair value as of September 30, 2024 and December 31, 2023:

	As of September 30, 2024
	Level 1		Level 2		Level 3		Total
Portfolio Investments
First Lien Loans	$	-	$	-	$	9,801,392	$	9,801,392
Second Lien Loans		-		-		10,033,593		10,033,593
Equity		-		-		1,419,355		1,419,355
Unsecured Debt						-		-
Total Portfolio Investments		-		-		21,254,340		21,254,340
Total Investments	$	-	$	-	$	21,254,340	$	21,254,340

	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

Schedule of Changes in Level 3 Assets Measured at Fair Value

Changes in Level 3 assets measured at fair value for the nine months ended September 30, 2024 are as follows:

	First Lien Loans			Second Lien Loans			Unsecured Loans		Equity			Total
Fair value at beginning of period	$	12,301,440		$	11,652,480		$	-	$	5,781,033		$	29,734,953
Purchases of investments		65,000			-			-		-			65,000
Sales or repayment of investments		(192,932	)		-			-		-			(192,932	)
Payment-in-kind interest		-			234,092			-		-			234,092
Change in unrealized gain (loss) on investments		(1,048,904	)		(1,852,979	)		-		(135,155	)		(3,037,038	)
Realized gain (loss) on investments		(1,323,212	)		-			-		(4,226,523	)		(5,549,735	)
Fair value at end of period	$	9,801,392		$	10,033,593		$	-	$	1,419,355		$	21,254,340
Change in unrealized gain (loss) on Level 3 investments still held as of September 30, 2024	$	(1,048,904	)	$	(1,852,979	)	$	-	$	(135,155	)	$	(3,037,038	)

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 gain (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	)

Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements

The following table provides quantitative information regarding Level 3 fair value measurements as of September 30, 2024:

Description	Fair Value		Valuation Technique ⁽¹⁾	Unobservable Inputs	Range (Average ⁽²⁾)

First Lien Loans	$	9,736,392	Enterprise Value Coverage	EV / STORE LEVEL EBITDAR	5.00x-5.50x (5.25x)
				Location Value	$1,400,000-$1,600,000 ($1,500,000)
		65,000	Appraisal Value Coverage	Cost Approach	$1,350,000-$1,650,000 ($1,500,000)
				Sales Comparison Approach	$1,404,000-$1,716,000 ($1,560,000)
Total		9,801,392

Second Lien Loans		7,114,217	Enterprise Value Coverage	EV / LTM Revenue	0.40x-0.45x (0.43x)
				EV / PF Revenue	1.05x-1.15x (1.10x)
		2,919,376	Net Orderly Liquidation Value	Total Asset Value Recovery Rate	72%-106% (89%)
Total		10,033,593

Unsecured Loans		-	Enterprise Value Coverage	EV / LTM Revenue	0.40x-0.45x (0.43x)
Total		-

Equity		-	Enterprise Value Coverage	EV / LTM Revenue	0.40x-0.45x (0.43x)
				EV / PF Revenue	1.05x-1.15x (1.10x)
				EV / Store level EBITDAR Location Value	5.00x-5.50x (5.25x) $1,400,000-$1,600,000 ($1,500,000)
		-	Net Orderly Liquidation Value	Total Asset Value Recovery Rate	72%-106% (89%)

		1,419,355	Appraisal Value Coverage	Cost Approach	$1,350,000-$1,650,000 ($1,500,000)
				Sales Comparison Approach	$1,404,000-$1,716,000 ($1,560,000)
Total		1,419,355
Total Level 3 Investments	$	$21,254,340

(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	$	12,128,041	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

(3)

There were no changes in the valuation technique for the Company’s investments from the prior quarter.

(4)

The average represents the arithmetic average of the unobservable inputs and is not weighted by the relative fair value.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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