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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
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Dec. 31, 2024
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 December 31, 2024 and December 31, 2023 were as follows:
|  | Fair Value Measurements at December 31, 2024 Using |
Assets |  | Quoted prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Other Unobservable Inputs (Level 3) |  |  | Total |
First Lien Senior Secured Loans |  | $ | - |  |  | $ | - |  |  | $ | 239,860,206 |  |  | $ | 239,860,206 |
Senior Secured Notes |  |  | - |  |  |  | - |  |  |  | 34,656,192 |  |  |  | 34,656,192 |
Preferred Stock |  |  | - |  |  |  | - |  |  |  | 500,000 |  |  |  | 500,000 |
Warrants |  |  | - |  |  |  | - |  |  |  | 225,000 |  |  |  | 225,000 |
Total |  | $ | - |  |  | $ | - |  |  | $ | 275,241,398 |  |  | $ | 275,241,398 |
|  | Fair Value Measurements at December 31, 2023 Using |
Assets |  | Quoted prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Other Unobservable Inputs (Level 3) |  |  | Total |
First Lien Senior Secured Loans |  | $ | - |  |  | $ | - |  |  | $ | 46,006,000 |  |  | $ | 46,006,000 |
Senior Secured Notes |  |  | - |  |  |  | - |  |  |  | 8,114,000 |  |  |  | 8,114,000 |
Total |  | $ | - |  |  | $ | - |  |  | $ | 54,120,000 |  |  | $ | 54,120,000 |
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 December 31, 2024 and December 31, 2023. 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, SOFR and/or Treasuries, as applicable, for senior secured first lien term loans, as of December 31, 2024 and December 31, 2023.
Investment Type |  | Fair Value as of 12/31/2024 |  | Valuation Techniques/Methodologies |  | Unobservable Input |  | Range |  |  | Weighted Average (1) |
First Lien Senior Secured Loans |  | $ | 239,860,206 |  | Discounted Cash Flow |  | Discount Rate |  |  | 9.1% - 28.6 | % |  |  | 13.4 | %
Senior Secured Notes |  |  | 34,656,192 |  | Discounted Cash Flow |  | Discount Rate |  |  | 7.4% - 17.2 | % |  |  | 11.5 | %
Preferred stock |  |  | 500,000 |  | Market Approach |  | Current Value |  |  | 2.50 | x |  |  | 2.50 | x
Warrants |  |  | 225,000 |  | Option Pricing Model |  | Volatility Factor |  |  | 47.2 | % |  |  | 47.2 | %
Total |  | $ | 275,241,398 |  |  |  |  |  |  |  |  |  |  |  |
(1) | The weighted average is calculated based on the fair value of each investment.
Investment Type |  | Fair Value as of 12/31/2023 |  | Valuation Techniques/Methodologies |  | Unobservable Input |  | Range |  |  | Weighted Average (1) |
First Lien Senior Secured Loans |  | $ | 46,006,000 |  | Discounted Cash Flow |  | Discount Rate |  |  | 10.4% - 14.0 | % |  |  | 12.20 | %
Senior Secured Notes |  |  | 8,114,000 |  | Discounted Cash Flow |  | Discount Rate |  |  | 7.4% - 13.7 | % |  |  | 10.50 | %
Total |  | $ | 54,120,000 |  |  |  |  |  |  |  |  |  |  |  |
(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 tables provide a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the years ended December 31, 2024 and December 31, 2023:
|  | First Lien Senior Secured Debt |  |  | Senior Secured Notes |  |  | Preferred Stock |  |  | Warrants |  |  | Total |
Balance as of December 31, 2023 |  | $ | 46,006,000 |  |  | $ | 8,114,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 54,120,000 |
Purchase of investments |  |  | 209,436,202 |  |  |  | 30,336,610 |  |  |  | 500,000 |  |  |  | 242,826 |  |  |  | 240,515,638 |
Net (accretion of discounts) and amortization of premiums |  |  | 836,005 |  |  |  | 265,290 |  |  |  | - |  |  |  | - |  |  |  | 1,101,295 |
PIK interest capitalized |  |  | 679,962 |  |  |  | 63,813 |  |  |  | - |  |  |  | - |  |  |  | 743,775 |
Proceeds from sales of investments and principal repayments |  |  | (17,288,331 | ) |  |  | (4,122,500 | ) |  |  | - |  |  |  | - |  |  |  | (21,410,831 | )
Net realized gain (loss) on investments |  |  | - |  |  |  | (74,483 | ) |  |  | - |  |  |  | - |  |  |  | (74,483 | )
Net change in unrealized appreciation (depreciation) on investments |  |  | 190,368 |  |  |  | 73,462 |  |  |  | - |  |  |  | (17,826 | ) |  |  | 246,004 |
Balance as of December 31, 2024 |  | $ | 239,860,206 |  |  | $ | 34,656,192 |  |  | $ | 500,000 |  |  | $ | 225,000 |  |  | $ | 275,241,398 |
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of December 31, 2024 |  | $ | 190,368 |  |  | $ | 73,462 |  |  | $ | - |  |  | $ | (17,826 | ) |  | $ | 246,004 |
|  | First Lien Senior Secured Debt |  |  | Senior Secured Notes |  |  | Total |
Balance as of December 31, 2022 |  | $ | 40,660,633 |  |  | $ | 9,593,917 |  |  | $ | 50,254,550 |
Purchase of investments |  |  | 8,442,000 |  |  |  | - |  |  |  | 8,442,000 |
Net (accretion of discounts) and amortization of premiums |  |  | 557,079 |  |  |  | 253,475 |  |  |  | 810,554 |
PIK interest capitalized |  |  | 115,725 |  |  |  | - |  |  |  | 115,725 |
Proceeds from sales of investments and principal repayments |  |  | (4,614,093 | ) |  |  | (1,600,000 | ) |  |  | (6,214,093 | )
Net realized gain (loss) on investments |  |  | - |  |  |  | (210,767 | ) |  |  | (210,767 | )
Net change in unrealized appreciation (depreciation) on investments |  |  | 844,656 |  |  |  | 77,375 |  |  |  | 922,031 |
Balance as of December 31, 2023 |  | $ | 46,006,000 |  |  | $ | 8,114,000 |  |  | $ | 54,120,000 |
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of December 31, 2023 |  | $ | 844,656 |  |  | $ | 77,375 |  |  | $ | 922,031 |

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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://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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