Fair Value of Investments (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| Fair Value of Investments [Abstract] |
|
| Schedule of company’s assets measured at fair value |
| |
|
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 |
|
| |
|
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 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 (loss) 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 |
|
| Transfers
in/out |
|
|
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 |
|
| |
|
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 |
|
$ |
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. |
| 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 |
|
|
|
|
|
|
|
| (1) |
The valuation technique for the Company's investment in a First Lien Loan changed with addition of a Judgment Recovery, Judgment plus Penalty Recovery and Zero Recovery techniques. The reason for the change was the additional recovery options that presented itself in the fourth quarter. The valuation technique for the Company's investment in a Second Lien Loan and an Equity position changed with the addition of a Pending Sale technique. The reason for the change is that these investments are pending sale as of December 31, 2021. |
| (2) |
The
average represents the arithmetic average of the unobservable inputs and is not weighted
by the relative fair value. |
|