Quarterly report [Sections 13 or 15(d)]

Fair Value of Investments (Tables)

Fair Value of Investments (Tables)

9 Months Ended

Sep. 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 September 30, 2025 and December 31, 2024, respectively:

	As of September 30, 2025
	Level 1		Level 2		Level 3		Total
Portfolio Investments
First Lien Loans	$	-	$	-	$	7,499,146	$	7,499,146
Second Lien Loans		-		-		8,259,332		8,259,332
Equity		-		-		895,819		895,819
Total Portfolio Investments		-		-		16,654,297		16,654,297
Total Investments	$	-	$	-	$	16,654,297	$	16,654,297

	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 nine months ended September 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		(2,371,817	)		271,535		-		(483,200	)		(2,583,482	)
Fair value at end of period	$	7,499,146		$	8,259,332	$	-	$	895,819		$	16,654,297
Change in unrealized loss on Level 3 investments still held as of September 30, 2025	$	(2,371,817	)	$	271,535	$	-	$	(483,200	)	$	(2,583,482	)

Changes in Level 3 assets measured at fair value for the year ended December 31, 2024 are as follows:

	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 September 30, 2025:

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

First Lien Loans	$	7,399,146	Enterprise Value Coverage	EV / Store level EBITDAR Location Value	4.00x-4.500x (4.25x) $1,050,000-$1,250,000 ($1,150,000)
		50,000	Appraisal Value Coverage	Cost Approach	$820,000-$1,055,000 ($938,000)
				Sales Comparison Approach	$919,000-$1,176,000 ($1,048,000)
		50,000	Broker Estimates	Broker Estimate	$972,000-$1,211,000 ($1,092,000)
Total		7,499,146

Second Lien Loans		4,890,610	Enterprise Value Coverage	EV / LTM Revenue EV / PF Revenue	0.30x-0.35x (0.33x) 1.10x-1.20x (1.15x)

		3,368,722	Net Orderly Liquidation Value	Total Asset Value Recovery Rate	45%-75% (60%)
Total		8,259,332

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	1.10x-1.120 (1.15)
				EV / Store level EBITDAR	4.00x-4.50x (4.25x)
				Location Value	$1,050,000-$1,250,000 ($1,150,000)
		-	Net Orderly Liquidation Value	Total Asset Value Recovery Rate	45%-75% (60%)
		447,909	Appraisal Value Coverage	Cost Approach	$820,000-$1,055,000 ($938,000)
				Sales Comparison Approach	$919,000-$1,176,000 ($1,048,000)
		447,910	Broker Estimates	Broker Estimate	$972,000-$1,211,000 ($1,092,000)
Total		895,819
Total Level 3 Investments	$	16,654,297

(1)

There was a change in the valuation technique from the prior quarter for the Company’s investment in a portfolio company with a first lien revolver and equity position. The change added a valuation technique using broker estimates as a source to properly estimate fair market value.

(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

- 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.

+ References + Details