FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| FAIR VALUE OF FINANCIAL INSTRUMENTS |
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| Schedule of fair value measurements of our investments by major class according to the fair value hierarchy |
The following table presents the fair value measurements of our portfolio investments by major class, as of December 31, 2021, according to the fair value hierarchy: | | | | | | | | | | | | | | | As of December 31, 2021 | | | Level 1 | | Level 2 | | Level 3 | | Total | Short-term Non-banking Loans | | $ | — | | $ | — | | $ | 11,650,000 | | $ | 11,650,000 | Preferred Stock | | | — | | | — | | | 1,200,000 | | | 1,200,000 | Common Stock | | | 436,175 | | | — | | | — | | | 436,175 | Other Equity | | | — | | | — | | | 812,500 | | | 812,500 | Total | | $ | 436,175 | | $ | — | | $ | 13,662,500 | | $ | 14,098,675 |
The following table presents the fair value measurements of our portfolio investments by major class, as of December 31, 2020, according to the fair value hierarchy: | | | | | | | | | | | | | | | As of December 31, 2020 | | | Level 1 | | Level 2 | | Level 3 | | Total | Short-term Non-banking Loans | | $ | — | | $ | — | | $ | 2,789,000 | | $ | 2,789,000 | Preferred Stock | | | — | | | — | | | 300,000 | | | 300,000 | Common Stock | | | 3,300,000 | | | — | | | — | | | 3,300,000 | Other Equity | | | — | | | — | | | 278,897 | | | 278,897 | Total | | $ | 3,300,000 | | $ | — | | $ | 3,367,897 | | $ | 6,667,897 |
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| Schedule of reconciliation of the beginning and ending fair value balances for our Level 3 investment assets |
The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the year ended December 31, 2021: | | | | | | | | | | | | | | | | | | For the year ended December 31, 2021 | | | | | | ST | | | | | | | | | | | | | | | Non-banking | | Preferred | | Common | | | | | | | | | Loans | | Stock | | Stock | | Warrants | | Other Equity | Balance as of January 1, 2021 | | $ | 2,789,000 | | $ | 300,000 | | $ | — | | $ | — | | $ | 278,897 | Net change in unrealized appreciation | | | — | | | — | | | — | | | — | | | — | Purchases and other adjustments to cost | | | 24,765,333 | | | 900,000 | | | — | | | — | | | 812,500 | Sales and redemptions | | | (15,904,333) | | | — | | | — | | | — | | | (278,897) | Net realized loss | | | — | | | — | | | — | | | — | | | — | Balance as of December 31, 2021 | | $ | 11,650,000 | | $ | 1,200,000 | | $ | — | | $ | — | | $ | 812,500 |
The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the year ended December 31, 2020: | | | | | | | | | | | | | | | | | | For the year ended December 31, 2020 | | | | | | ST Non-banking | | Preferred | | Common | | | | | | | Loans | | Stock | | Stock | | Warrants | | Other Equity | Balance as of January 1, 2020 | | $ | — | | $ | 300,000 | | $ | — | | $ | — | | $ | 534,200 | Net change in unrealized appreciation | | | — | | | — | | | — | | | — | | | 486,018 | Purchases and other adjustments to cost | | | 7,543,000 | | | — | | | — | | | — | | | — | Sales and redemptions | | | (4,754,000) | | | — | | | — | | | — | | | (91,313) | Net realized loss | | | — | | | — | | | — | | | — | | | (650,008) | Balance as of December 31, 2020 | | $ | 2,789,000 | | $ | 300,000 | | $ | — | | $ | — | | $ | 278,897 |
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| Schedule of Level 3 investments held and the unobservable inputs used to determine their valuation |
The following table lists our Level 3 investments held as of December 31, 2021 and the unobservable inputs used to determine their valuation: | | | | | | | | | | | Security Type | | 12/31/21 FMV | | Valuation Technique | | Unobservable Inputs | | Range | | ST Non-banking Loans | | $ | 11,650,000 | | discounted cash flow | | determining private company interest rate based on credit | | 12-44 | % | Other Equity | | | 812,500 | | last secured funding known by company | | economic changes since last funding | | | | Preferred Stock | | | 1,200,000 | | last funding secured by company | | economic changes since last funding | | | | | | $ | 13,662,500 | | | | | | | |
The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the year ended December 31, 2020: | | | | | | | | | | | Security Type | | 12/31/20 FMV | | Valuation Technique | | Unobservable Inputs | | Range | | ST Non-banking Loans | | $ | 2,789,000 | | discounted cash flow | | determining private company interest rate based on credit | | 14-44 | % | Other Equity | | | 278,897 | | last secured funding known by company | | economic changes since purchase | | | | Preferred Stock | | | 300,000 | | last funding secured by company | | economic changes since last funding | | | | | | $ | 3,367,897 | | | | | | | |
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