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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended
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Mar. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] |
Investments Measured at Fair Value by Investment Type on Recurring Basis | The Company’s investments measured at fair value by investment type on a recurring basis as of March 31, 2023 were as follows:
|  | Fair Value Measurements at March 31, 2023 Using |
Assets |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Senior Secured First Lien Term Loan |  | $ | - |  |  | $ | - |  |  | $ | 45,703,391 |  |  | $ | 45,703,391 |
Senior Secured Notes |  |  | - |  |  |  | - |  |  |  | 9,919,908 |  |  |  | 9,919,908 |
Total |  | $ | - |  |  | $ | - |  |  | $ | 55,623,299 |  |  | $ | 55,623,299 |
The Company’s investments measured at fair value by investment type on a recurring basis as of December 31, 2022 were as follows:
|  | Fair Value Measurements at December 31, 2022 Using |
Assets |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Senior Secured First Lien Term Loan |  | $ | - |  |  | $ | - |  |  | $ | 40,660,663 |  |  | $ | 40,660,663 |
Senior Secured Notes |  |  | - |  |  |  | - |  |  |  | 9,593,917 |  |  |  | 9,593,917 |
Total |  | $ | - |  |  | $ | - |  |  | $ | 50,254,580 |  |  | $ | 50,254,580 |
Significant Unobservable Inputs used in Fair Value Measurement Level 3 Portfolio Investments | The following tables provide a summary of the significant unobservable inputs used to fair value the Level 3 portfolio investments as of March 31, 2023 and December 31, 2022. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Significant Accounting Policies”. Discount Rate ranges are shown as spread over Treasuries for Senior Secured First Lien Term Loans.
Investment Type |  | Fair Value as of March 31, 2023 |  | Valuation Techniques/ Methodologies |  | Unobservable Input |  | Range |  |  | Weighted Average (1) |
Senior Secured First Lien Term Loan |  | $ | 45,703,391 |  | Discounted Cash Flow |  | Discount Rate |  |  | 11.6% - 14.8 | % |  |  | 12.9 | %
Senior Secured Notes |  |  | 9,919,908 |  | Discounted Cash Flow |  | Discount Rate |  |  | 9.7% - 15.9 | % |  |  | 11.4 | %
Total |  | $ | 55,623,299 |  |  |  |  |  |  |  |  |  |  |  |
Investment Type |  | Fair Value as of December 31, 2022 |  | Valuation Techniques/ Methodologies |  | Unobservable Input |  | Range |  |  | Weighted Average (1) |
Senior Secured First Lien Term Loan |  | $ | 40,660,633 |  | Discounted Cash Flow |  | Discount Rate |  |  | 7.2% - 9.6 | % |  |  | 8.4 | %
| Volatility |  |  | 20.0% - 20.0 | % |  |  | 20.0 | %
Senior Secured Notes |  |  | 9,593,917 |  | Discounted Cash Flow |  | Discount Rate |  |  | 11.6% - 18.7 | % |  |  | 14.3 | %
| Volatility |  |  | 7.0% - 20.0 | % |  |  | 12.4 | %
Total |  | $ | 50,254,550 |  |  |  |  |  |  |  |  |  |  |  |
(1) The weighted average is calculated based on the fair value of each investment.
Changes in Fair Value of Level 3 Portfolio Investments | The following table provides a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the three months ended March 31, 2023:
|  | Senior Secured First Lien Term Loan |  |  | Senior Secured Notes |  |  | Total Investments |
Fair Value as of December 31, 2022 |  | $ | 40,660,633 |  |  | $ | 9,593,917 |  |  | $ | 50,254,550 |
Purchases |  |  | 4,230,000 |  |  |  | - |  |  |  | 4,230,000 |
Accretion of discount and fees (amortization of premium), net |  |  | 62,621 |  |  |  | 78,198 |  |  |  | 140,819 |
PIK interest |  |  | 11,573 |  |  |  | - |  |  |  | 11,573 |
Sales of investments |  |  | - |  |  |  | - |  |  |  | - |
Proceeds from principal repayments |  |  | - |  |  |  | - |  |  |  | - |
Net realized gain (loss) on investments |  |  | - |  |  |  | - |  |  |  | - |
Net change in unrealized appreciation (depreciation) on investments |  |  | 738,564 |  |  |  | 247,793 |  |  |  | 986,357 |
Balance as of March 31, 2023 |  | $ | 45,703,391 |  |  | $ | 9,919,908 |  |  | $ | 55,623,299 |
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of March 31, 2023 |  | $ | 738,564 |  |  | $ | 247,793 |  |  | $ | 986,357 |

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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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