XML 34 R24.htm IDEA: XBRL DOCUMENT v3.23.2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023 were as follows:

		Fair Value Measurements at June 30, 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		$	-			$	-			$	49,731,544			$	49,731,544
Senior Secured Notes			-				-				7,937,500				7,937,500
Total		$	-			$	-			$	57,669,044			$	57,669,044

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 June 30, 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 PRIME and Treasuries, respectively, for Senior Secured First Lien Term Loans as of June 30, 2023 and December 31, 2022.

Investment Type		Fair Value as of   June 30, 2023			Valuation Techniques/ Methodologies		Unobservable Input		Range				Weighted Average (1)
Senior Secured First Lien Term Loan		$	49,731,544		Discounted Cash Flow		Discount Rate			8.4% - 11.4	%			9.9	%
Senior Secured Notes			7,937,500		Discounted Cash Flow		Discount Rate			12.2% - 17.6	%			14.8	%
Total		$	57,669,044

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 six months ended June 30, 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			8,442,000				-				8,442,000
Accretion of discount and fees (amortization of premium), net			158,740				142,818				301,558
PIK interest			62,587				-				62,587
Proceeds from sales of investments and principal repayments			(90,000	)			(1,600,000	)			(1,690,000	)
Net realized gain (loss) on investments			-				(210,767	)			(210,767	)
Net change in unrealized appreciation (depreciation) on investments			497,584				11,532				509,116
Balance as of June 30, 2023		$	49,731,544			$	7,937,500			$	57,669,044
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of June 30, 2023		$	497,584			$	11,532			$	509,116

The following table provides a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the six months ended June 30, 2022:

		Senior Secured First Lien Term Loan				Total Investments
Fair Value as of December 31, 2021		$	-			$	-
Purchases			24,417,500				24,417,500
Accretion of discount and fees (amortization of premium), net			9,508				9,508
PIK interest			-				-
Proceeds from sales of investments and principal repayments			-				-
Net realized gain (loss) on investments			-				-
Net change in unrealized appreciation (depreciation) on investments			(9,508	)			(9,508	)
Balance as of June 30, 2022		$	24,417,500			$	24,417,500
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of June 30, 2022		$	(9,508	)		$	(9,508	)

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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration