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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

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

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ 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 (bbb)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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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
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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258

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-Publisher FASB
-Name Accounting Standards Codification
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