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

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

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 $181.8 million and $190.0 million as of September 30, 2023 and December 31, 2022, 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, 2023 and December 31, 2022:

		*September 30, 2023*								*December 31, 2022*
						*Fair Value of*								*Fair Value of*
						*Unfunded*								*Unfunded*
		*Principal*				*Commitment*				*Principal*				*Commitment*
		*Balance*				*Liability*				*Balance*				*Liability*
		(In thousands)								(In thousands)
BrightInsight, Inc.		$	18,250			$	241			$	21,000			$	278
Britecore Holdings, Inc.			5,000				72				5,000				66
Candesant Biomedical Corporation			10,000				151				—				—
Castle Creek Biosciences			4,000				72				4,000				72
Divergent Technologies, Inc.			11,250				118				22,500				236
Elligo Healthcare Research, Inc.			15,000				194				—				—
Engage3, LLC			—				—				8,000				40
Groundspeed Analytics, Inc.			—				—				15,000				150
Hound Labs, Inc.			—				—				7,500				88
KSQ Therapeutics, Inc.			—				—				10,000				100
Lytics, Inc.			4,000				52				5,000				65
Mirantis, Inc.			15,000				136				—				—
Native Microbials, Inc.			—				—				7,500				72
Noodle Partners, Inc.			5,000				61				—				—
Optoro, Inc.			6,250				—				15,000				38
PDS Biotechnology Corporation			—				—				10,000				158
Robin Healthcare, Inc.			—				—				10,000				100
SafelyYou, Inc.			20,000				270				—				—
Scientia Vascular, Inc.			5,000				55				10,000				110
Slingshot Aerospace, Inc.			—				—				5,000				64
Sonex Health, Inc.			15,000				176				—				—
Supply Network Visibility Holdings, LLC			10,000				35				—				—
Swift Health Systems Inc.			11,500				—				25,500				105
Tallac Therapeutics, Inc.			10,000				229				—				—
Temperpack Technologies, Inc.			6,500				14				9,000				19
Viken Detection Corporation			10,000				160				—				—
Total		$	181,750			$	2,036			$	190,000			$	1,761

The table above also provides the fair value of the Company’s unfunded commitment liability as of September 30, 2023 and December 31, 2022, which totaled $2.0 million and $1.8 million, respectively. 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.