Quarterly report [Sections 13 or 15(d)]

Fair Value of Investments (Tables)

v3.25.2
Fair Value of Investments (Tables)
 6 Months Ended
Jun. 30, 2025
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 June 30, 2025 and December 31, 2024, respectively:

 

    As of June 30, 2025
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
          -
     $
          -
     $ 8,570,954     $ 8,570,954  
Second Lien Loans    
-
      
-
       7,832,615       7,832,615  
Equity    
-
      
-
       953,560       953,560  
Total Portfolio Investments    
-
      
-
       17,357,129       17,357,129  
Total Investments   $
-
     $
-
     $ 17,357,129     $ 17,357,129  

 

      As of December 31, 2024  
      Level 1       Level 2       Level 3       Total  
Portfolio Investments                                
First Lien Loans   $
-
     $
-
     $ 9,850,963     $ 9,850,963  
Second Lien Loans    
-
      
-
       7,987,797       7,987,797  
Equity    
-
      
-
       1,379,019       1,379,019  
Total Portfolio Investments    
-
      
-
       19,217,779       19,217,779  
Total Investments   $
-
     $
-
     $ 19,217,779     $ 19,217,779  
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, 2025 are as follows:

 

    First Lien
Loans		     Second Lien
Loans		     Unsecured
Loans		     Equity     Total  
Fair value at beginning of period   $ 9,850,963     $ 7,987,797     $
              -
     $ 1,379,019     $ 19,217,779  
Purchases of investments     20,000      
-
      
-
      
-
       20,000  
Sales or repayment of investments    
-
      
-
      
-
      
-
      
-
  
Payment-in-kind interest    
-
      
-
      
-
      
-
      
-
  
Change in unrealized loss on investments     (1,300,009 )     (155,182 )    
-
       (425,459 )     (1,880,650 )
Fair value at end of period   $ 8,570,954     $ 7,832,615     $
-
     $ 953,560     $ 17,357,129  
Change in unrealized loss on Level 3 investments still held as of June 30, 2025   $ (1,300,009 )   $ (155,182 )   $
-
     $ (425,459 )   $ (1,880,650 )
    First Lien
Loans		     Second Lien
Loans		     Unsecured
Loans		     Equity     Total  
Fair value at beginning of year   $ 12,301,440     $ 11,652,480     $
              -
     $ 5,781,033     $ 29,734,953  
Purchases of investments     80,000      
-
      
-
      
-
       80,000  
Sales or repayment of investments     (192,932 )    
-
      
-
      
-
       (192,932 )
Payment-in-kind interest    
-
       318,417      
-
      
-
       318,417  
Change in unrealized loss on investments     (1,014,333 )     (3,983,100 )    
-
       (175,491 )     (5,172,924 )
Realized loss on investments     (1,323,212 )    
-
      
-
       (4,226,523 )     (5,549,735 )
Fair value at end of year   $ 9,850,963     $ 7,987,797     $
-
     $ 1,379,019     $ 19,217,779  
Change in unrealized loss on Level 3 investments still held as of December 31, 2024   $ (2,357,078 )   $ (3,983,100 )   $
-
     $ (4,402,014 )   $ (10,742,192 )
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, 2025:

 

Description   Fair Value     Valuation
Technique (1)		   Unobservable
Inputs		   Range (Average (2))  
                     
First Lien Loans   $ 8,470,954     Enterprise Value Coverage   EV / Store level EBITDAR
Location Value		    

4.50x-5.00x (4.75x)

$1,250,000-$1,450,000 ($1,350,000)

  
      100,000     Appraisal Value Coverage   Cost Approach
    $1,251,000-$1,529,000 ($1,390,000)  
Total     8,570,954         Sales Comparison Approach    

$1,377,000-$1,683,000

($1,530,000)

  
                         
Second Lien Loans     4,824,851     Enterprise Value Coverage   EV / LTM Revenue
EV / PF Revenue		    

0.30x-0.35x (0.33x)

1.05x-1.15x (1.10x)

  
                         
      3,007,764     Net Orderly Liquidation Value   Total Asset Value Recovery Rate     39%-70% (55%)  
Total     7,832,615                  
                         
Unsecured Loans    
-
     Enterprise Value Coverage   EV / LTM Revenue     0.30x-0.35x (0.33x)  
Total    
-
                  
                         
Equity    
-
     Enterprise Value Coverage   EV / LTM Revenue     0.30x-0.35x (0.33x)  
                EV / PF Revenue     1.05x-1.15x (1.10)  
                EV / Store level EBITDAR     4.50x-5.00x (4.75x)  
                Location Value     $1,250,000-$1,450,000 ($1,350,000)  
     
-
     Net Orderly Liquidation Value   Total Asset Value Recovery Rate    

39%-70% (55%)

  
      953,560     Appraisal Value Coverage   Cost Approach     $1,251,000-$1,529,000 ($1,390,000)  
                Sales Comparison Approach     $1,377,000-$1,683,000 ($1,530,000)  
Total     953,560                  
Total Level 3 Investments   $ 17,357,129                  

 

(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, 2024:

 

Description   Fair Value     Valuation
Technique (1)		   Unobservable
Inputs		   Range (Average (2))  
                     
First Lien Loans   $ 9,770,963     Enterprise Value Coverage   EV / STORE LEVEL EBITDAR     4.75x-5.25x(5.00x)  
                Location Value     $1,300,000-$1,500,000 ($1,400,000)  
      80,000     Appraisal Value Coverage   Cost Approach    

$1,323,000-$1,617,000

($1,470,000)

  
                Sales Comparison Approach    

$1,395,000-$1,705,000 ($1,550,000)

  
Total     9,850,963                  
                         
Second Lien Loans     4,874,360     Enterprise Value Coverage   EV / LTM Revenue     0.37x-0.42x (0.40)  
                EV / PF Revenue     1.05x-1.15x (1.10x)  
      3,113,437     Net Orderly Liquidation Value   Total Asset Value Recovery Rate     54%-86% (70%)  
Total     7,987,797                  
                         
Unsecured Loans    
-
     Enterprise Value Coverage   EV / LTM Revenue     0.37x-0.42x (0.40x)  
Total    
-
                  
                         
Equity    
-
     Enterprise Value Coverage   EV / LTM Revenue     0.37x-0.42x (0.40x)  
                EV / PF Revenue     1.05x-1.15x (1.10x)  
                EV / Store level EBITDAR
Location Value		    

4.75x-5.25x (5.00x)

$1,300,000-$1,500,000 ($1,400,000)

  
     
-
     Net Orderly Liquidation Value   Total Asset Value Recovery Rate     54%-86% (70%)  
                         
      1,379,019     Appraisal Value Coverage
  Cost Approach     $1,323,000-$1,617,000 ($1,470,000)  
                Sales Comparison Approach     $1,395,000-$1,705,000 ($1,550,000)  
Total     1,379,019                  
Total Level 3 Investments   $ 19,217,779                  

 

(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.