Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Investments (Tables)

v3.23.3
Fair Value of Investments (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value of Investments [Abstract]  
Schedule of Company’s Assets Measured at Fair Value The following table presents information about the Company’s assets measured at fair value as of September 30, 2023 and December 31, 2022, respectively:
    As of September 30, 2023  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
     -
     $
     -
     $ 12,503,591     $ 12,503,591  
Second Lien Loans    
-
      
-
       11,759,414       11,759,414  
Equity    
-
      
-
       6,318,958       6,318,958  
Total Portfolio Investments    
-
      
-
       30,581,963       30,581,963  
Total Investments   $
-
     $
-
     $ 30,581,963     $ 30,581,963  
    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  
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, 2023 are as follows:
    First Lien
Loans		     Second Lien
Loans		     Unsecured Loans     Equity     Total  
Fair value at beginning of period   $ 13,144,967     $ 10,976,647     $
        -
     $ 6,442,474     $ 30,564,088  
Purchases of investments    
-
      
-
      
-
      
-
      
-
  
Sales or repayment of investments    
-
      
-
      
-
      
-
      
-
  
Payment-in-kind interest    
-
       93,141      
-
      
-
       93,141  
Change in unrealized gain (loss) on investments     (641,376 )     689,626      
-
       (123,516 )     (75,266 )
Fair value at end of period   $ 12,503,591     $ 11,759,414     $
-
     $ 6,318,958     $ 30,581,963  
Change in unrealized gain (loss) on Level 3 investments still held as of September 30, 2023   $ (641,376 )   $ 689,626     $
-
     $ (123,516 )   $ (75,266 )

 

Changes in Level 3 assets measured at fair value for the year ended December 31, 2022 are as follows:
    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  
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, 2023:
Description   Fair Value     Valuation Technique (1)     Unobservable Inputs   Range (Average (2))
                     
First Lien Loans   $ 12,329,569       Enterprise Value Coverage     EV / Store level EBITDAR   5.00x-5.50x (5.25x)
                    Location Value   $1,400,000-$1,600,000 ($1,500,000)
Total     12,329,569                  
                         
Second Lien Loans     11,759,414       Enterprise Value Coverage     EV / LTM Revenue   0.38x-0.43x (0.40x)
                    EV / PF EBITDA   5.25x-6.25x (5.75x)
Total     11,759,414                  
                         
Unsecured Loans    
-
       Enterprise Value Coverage     EV / LTM Revenue   0.38x-0.43x (0.40x)
Total    
-
                  
                         
Equity     4,725,572       Enterprise Value Coverage     EV / LTM Revenue   0.38x-0.43x (0.40x)
                    EV / PF EBITDA   5.25x-6.25x (5.75x)
                    EV / Store level EBITDAR   5.25x-5.75x (5.50x)
                    Location Value   $1,400,000-$1,600,000 ($1,500,000)
      1,592,186       Appraisal Value Coverage       Cost Approach   $1,413,000-$1,727,000 ($1,570,000)
                    Sales Comparison Approach   $1,458,000-$1,782,000 ($1,620,000)
Total     6,317,758                  
Total Level 3 Investments   $ 30,406,741                  
The following table provides quantitative information regarding Level 3 fair value measurements as of December 31, 2022:
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