Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Investments (Tables)

v3.24.1.1.u2
Fair Value of Investments (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and December 31, 2023, respectively:
    As of March 31, 2024  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
       -
     $
        -
     $ 10,175,864     $ 10,175,864  
Second Lien Loans    
-
      
-
       11,447,753       11,447,753  
Equity    
-
      
-
       1,634,498       1,634,498  
Total Portfolio Investments    
-
      
-
       23,258,115       23,258,115  
Total Investments   $
-
     $
-
     $ 23,258,115     $ 23,258,115  
    As of December 31, 2023  
    Level 1     Level 2     Level 3     Total  
Portfolio Investments                        
First Lien Loans   $
         -
     $
       -
     $ 12,301,440     $ 12,301,440  
Second Lien Loans    
-
      
-
       11,652,480       11,652,480  
Equity    
-
      
-
       5,781,033       5,781,033  
Total Portfolio Investments    
-
      
-
       29,734,953       29,734,953  
Total Investments   $
-
     $
-
     $ 29,734,953     $ 29,734,953  
Schedule of Changes in Level 3 Assets Measured at Fair Value Changes in Level 3 assets measured at fair value for the three months ended March 31, 2024 are as follows:
    First Lien Loans     Second Lien Loans     Unsecured Loans     Equity     Total  
Fair value at beginning of period   $ 12,301,440     $ 11,652,480     $     -     $ 5,781,033     $ 29,734,953  
Purchases of investments     -       -       -       -       -  
Sales or repayment of investments     -       -      
-
       -       -  
Payment-in-kind interest     -       75,014       -       -       75,014  
Change in unrealized gain (loss) on investments     (2,125,576 )     (279,741 )     -       (4,146,535 )     (6,551,852 )
Fair value at end of period   $ 10,175,864     $ 11,447,753     $
-
     $ 1,634,498     $ 23,258,115  
Change in unrealized gain (loss) on Level 3 investments still held as of March 31, 2024   $ (2,125,576 )   $ (279,741 )   $
           -
     $ (4,146,535 )   $ (6,551,852 )

 

Changes in Level 3 assets measured at fair value for the year ended December 31, 2023 are as follows:
   

First Lien

Loans

     Second Lien Loans     Unsecured
Loans		     Equity     Total  
Fair value at beginning of year   $ 13,144,967     $ 10,976,647     $
          -
     $ 6,442,474     $ 30,564,088  
Sales or repayment of investments    
-
      
-
      
-
      
-
      
-
  
Payment-in-kind interest    
-
       166,339      
-
      
-
       166,339  
Realized gain (loss) on investments    
-
      
-
      
-
       (1,200 )     (1,200 )
Change in unrealized gain (loss) on investments     (843,527 )     509,494      
-
       (660,241 )     (994,274 )
Transfers in/out    
-
      
-
      
-
      
-
      
-
  
Fair value at end of year   $ 12,301,440     $ 11,652,480     $
-
     $ 5,781,033     $ 29,734,953  
Change in unrealized gain (loss) on Level 3 investments still held as of December 31, 2023   $ (843,527 )   $ 509,494     $
         -
     $ (660,241 )   $ (994,274 )
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements The following table provides quantitative information regarding Level 3 fair value measurements as of March 31, 2024:
Description   Fair Value     Valuation Technique (1)     Unobservable Inputs   Range (Average (2))
                     
First Lien Loans   $ 9,982,531       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     9,982,531                  
                         
Second Lien Loans     11,447,753       Enterprise Value Coverage      EV / Run Rate Revenue    0.37x-0.42x (0.39x)
                    EV / PF EBITDA   6.25x-675x (6.50x)
Total     11,447,753                  
                         
Unsecured Loans    
-
       Enterprise Value Coverage     EV / Run Rate Revenue   0.37x-0.42x (0.39x)
Total    
-
                  
                         
Equity     125,192       Enterprise Value Coverage     EV / Run Rate Revenue   0.37x-0.42x (0.39x)
                    EV / PF EBITDA   6.25x-6.75x (6.50x)
                    EV / Store level EBITDAR   5.00x-5.50x (5.25x)
                    Location Value   $1,400,000-$1,600,000 ($1,500,000)
      1,509,306       Appraisal Value Coverage     Cost Approach   $1,350,000-$1,650,000 ($1,500,000)
                    Sales Comparison Approach   $1,485,000-$1,815,000 ($1,650,000)
Total     1,634,498                  
Total Level 3 Investments   $ 23,064,782                  
(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, 2023:
Description   Fair Value     Valuation Technique (1)   Unobservable Inputs   Range (Average (2)
                   
First Lien Loans   $ 12,128,041     Enterprise Value Coverage   EV / Store level EBITDAR   5.25x-5.75x (5.50x)
                Location Value   $1,425,000-$1,625,000 (1,525,000)
Total     12,128,041              
                     
Second Lien Loans     11,652,480     Enterprise Value Coverage   EV / Run Rate Revenue   0.37x-0.42x (0.39x)
                EV / PF EBITDA   5.50x-6.50x (6.00x)
Total     11,652,480              
                     
Unsecured Loans    
-
     Enterprise Value Coverage   EV / Run Rate Revenue   0.37x-0.42x (0.39x)
Total    
-
              
                     
Equity     4,237,192     Enterprise Value Coverage   EV / Run Rate Revenue   0.37x-0.42x (0.39x)
                EV / PF EBITDA   5.50x-6.50x (6.00x)
                EV / Store level EBITDAR   5.25x-5.75x (5.50x)
                Location Value   $1,425,000-$1,625,000 ($1,525,000)
                Cost Approach   $1,413,000-$1,727,000 (1,570,000)
      1,543,841     Appraisal Value Coverage   Sales Comparison Approach   $1,440,000-$1,760,000 ($1,600,000)
Total     5,781,033              
Total Level 3 Investments   $ 29,561,554              
(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.