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Note 8 - Financial Instruments With Off-balance-sheet Risk

9 Months Ended

Sep. 30, 2022

Financial Instruments Disclosure [Text Block]

Note 8. Financial instruments with off-balance-sheet risk

In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk to meet the financing needs of its borrowers. These financial instruments include commitments to extend credit and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statement of assets and liabilities. The Company attempts to limit its credit risk by conducting extensive due diligence and obtaining collateral where appropriate.

The balance of unfunded commitments to extend credit was $214.5 million and $114.5 million as of September 30, 2022 and December 31, 2021, respectively. Commitments to extend credit consist principally of the unused portions of commitments that obligate the Company to extend credit, often subject to financial or non-financial milestones and other conditions to borrow that must be achieved before the commitment can be drawn. In addition, the commitments generally have fixed expiration dates or other termination clauses. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The following table provides the Company’s unfunded commitments by portfolio company as of September 30, 2022:

	September 30, 2022
			Fair Value of
			Unfunded
	*Principal*		*Commitment*
	*Balance*		*Liability*
	(In thousands)
Better Place Forests Co.	$	5,000	$	6
BrightInsight, Inc.		21,000		278
Britecore Holdings, Inc.		5,000		66
Canary Medical Inc.		2,500		34
Castle Creek Biosciences		4,000		72
Ceribell, Inc.		2,500		4
Divergent Technologies, Inc.		30,000		315
DropOff, Inc.		7,500		188
Embody, Inc.		2,000		20
Engage3, LLC		8,000		40
Hound Labs, Inc.		7,500		87
Interior Define, Inc.		5,000		65
KSQ Therapeutics, Inc.		10,000		100
Lytics, Inc.		1,250		—
Magnolia Medical Technologies, Inc.		10,000		122
Native Microbials, Inc.		8,750		64
Optoro, Inc.		15,000		38
PDS Biotechnology Corporation		10,000		158
Scientia Vascular, Inc.		10,000		110
Slingshot Aerospace, Inc.		5,000		64
Soli, Inc.		7,500		147
Sonex Health, Inc.		2,500		45
Swift Health Systems Inc.		25,500		105
Temperpack Technologies, Inc.		9,000		19
Total	$	214,500	$	2,147

The table above also provides the fair value of the Company’s unfunded commitment liability as of September 30, 2022, which totaled $2.1 million. The fair value at inception of the delay draw credit agreements is equal to the fees and/or warrants received to enter into these agreements, taking into account the remaining terms of the agreements and the counterparties’ credit profile. The unfunded commitment liability reflects the fair value of these future funding commitments and is included in the Company’s consolidated statement of assets and liabilities.