Quarterly report [Sections 13 or 15(d)]

Fair Value of Investments (Tables)

v3.26.1
Fair Value of Investments (Tables)
 6 Months Ended
Jun. 30, 2026
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 June 30, 2026 and December 31, 2025, respectively:

 

    As of June 30, 2026  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                                
First Lien Loans   $     -     $         -     $ 8,151,019     $ 8,151,019  
Second Lien Loans     -       -       4,797,280       4,797,280  
Equity     -       -       854,735       854,735  
Total Portfolio Investments     -       -       13,803,034       13,803,034  
Total Investments   $ -     $ -     $ 13,803,034     $ 13,803,034  
    As of December 31, 2025  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                                
First Lien Loans   $         -     $        -     $ 7,589,357     $ 7,589,357  
Second Lien Loans     -       -       5,787,756       5,787,756  
Equity     -       -       884,342       884,342  
Total Portfolio Investments     -       -       14,261,455       14,261,455  
Total Investments   $ -     $ -     $ 14,261,455     $ 14,261,455  
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, 2026 are as follows:

 

    First
Lien Loans		     Second
Lien Loans		     Unsecured
Loans		     Equity     Total  
Fair value at beginning of period   $ 7,589,357     $ 5,787,756     $
           -
     $ 884,342     $ 14,261,455  
Change in unrealized loss on investments     561,662       (990,476 )    
-
       (29,607 )     (458,421 )
Fair value at end of period   $ 8,151,019     $ 4,797,280     $
-
     $ 854,735     $ 13,803,034  
Change in unrealized loss on Level 3 investments still held as of June 30, 2026   $ 561,662     $ (990,476 )   $
-
     $ (29,607 )   $ (458,421 )

 

 

Changes in Level 3 assets measured at fair value for the year ended December 31, 2025 are as follows:

 

    First
Lien Loans		     Second
Lien Loans		     Unsecured
Loans		     Equity     Total  
Fair value at beginning of year   $ 9,850,963     $ 7,987,797     $            -     $ 1,379,019     $ 19,217,779  
Purchases of investments     55,000       -       -       -       55,000  
Change in unrealized loss on investments     (2,316,606 )     (2,200,041 )     -       (494,677 )     (5,011,324 )
Fair value at end of year   $ 7,589,357     $ 5,787,756     $ -     $ 884,342     $ 14,261,455  
Change in unrealized loss on Level 3 investments still held as of December 31, 2025   $ (2,316,606 )   $ (2,200,041 )   $ -     $ (494,677 )   $ (5,011,324 )
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, 2026:

 

Description   Fair Value     Valuation
Technique (1)		   Unobservable
Inputs		   Range (Average (2))  
                     
First Lien Loans   $ 8,016,019     Enterprise Value Coverage   EV / STORE LEVEL EBITDAR     4.00x-4.50x (4.25x)  
                Location Value     $1,050,000-$1,250,000 ($1,150,000)  
      67,500     Appraisal Value Coverage   Cost Approach     $856,000-$1,099,000 ($978,000)  
                Sales Comparison Approach     $892,000-$1,143,000 ($1,018,000)    
      67,500     Broker Estimates   Broker Estimate     $972,000-$1,211,000 ($1,092,000)  
Total     8,151,019                  
                         
Second Lien Loans     3,699,778     Enterprise Value Coverage   EV / LTM Revenue     0.25x-0.30x (0.27x)  
                EV / PF Revenue     1.35x-1.55x (1.45x)  
      1,097,502     Net Orderly Liquidation Value   Total Asset Value Recovery Rate     5%-33% (19%)  
Total     4,797,280                  
                         
Unsecured Loans     -     Enterprise Value Coverage   EV / LTM Revenue     0.25x-0.30x (0.27x)  
Total     -                  
                         
Equity     -     Enterprise Value Coverage   EV / LTM Revenue     0.25x-0.30x (0.27x)  
                EV / PF Revenue     1.35x-1.55x (1.45x)  
                EV / STORE LEVEL EBITDAR Location Value     3.85x-4.35x (4.25x) $1,050,000-$1,250,000 ($1,150,000)  
      -     Net Orderly Liquidation Value   Total Asset Value Recovery Rate     5%-33% (19%)  
      427,368     Appraisal Value Coverage   Cost Approach       $856,000-$1,099,000 ($978,000)  
                Sales Comparison Approach     $892,000-$1,143,000 ($1,018,000)  
      427,367     Broker Estimates   Broker Estimate     $972,000-$1,211,000 (1,092,000)  
Total     854,735                  
Total Level 3 Investments   $ 13,803,034                  

 

(1) There were no changes in the valuation techniques 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, 2025:

 

Description   Fair Value     Valuation
Technique (1)		   Unobservable
Inputs		   Range (Average (2))  
                     
First Lien Loans   $ 7,454,357     Enterprise Value Coverage   EV / STORE LEVEL EBITDAR     4.00x-4.50x (4.25x)  
                Location Value     $1,050,000-$1,250,000 ($1,150,000)  
      67,500     Appraisal Value Coverage   Cost Approach     $838,000-$1,077,000 ($958,000)  
                Sales Comparison Approach     $928,000-$1,187,000 ($1,058,000)    
      67,500     Broker Estimates    Broker Estimate     $972,000-$1,211,000 ($1,092,000)  
Total     7,589,357                  
                         
Second Lien Loans     4,232,961     Enterprise Value Coverage   EV / LTM Revenue     0.27x-0.32x (0.29x)  
                EV / PF Revenue     1.20x-1.30x (1.25x)  
      1,554,795     Net Orderly Liquidation Value   Total Asset Value Recovery Rate     15%-44% (29%)  
Total     5,787,756                  
                         
Unsecured Loans     -     Enterprise Value Coverage   EV / LTM Revenue     0.27x-0.32x (0.29x)  
Total     -                  
                         
Equity     -     Enterprise Value Coverage   EV / LTM Revenue     0.27x-0.32x (0.29x)  
                EV / PF Revenue     1.20x-1.30x (1.25x)  
                EV / STORE LEVEL EBITDAR Location Value     4.00x-4.50x (4.25x) $1,050,000-$1,250,000 ($1,150,000)  
      -     Net Orderly Liquidation Value   Total Asset Value Recovery Rate     15%-44% (29%)  
      442,171     Appraisal Value Coverage   Cost Approach     $838,000-$1,077,000 ($958,000)  
                Sales Comparison Approach     $928,000-$1,187,000 ($1,058,000)  
      442,171     Broker Estimates   Broker Estimates     $972,000-$1,211,000 (1,092,000)  
Total     884,342                  
Total Level 3 Investments   $ 14,261,455                  

 

(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.