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Investments (Tables)
 12 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investment Purchases Sales And Principal Payments

Investment purchases, sales and principal payments/paydowns are summarized below for the years ended June 30, 2023, June 30, 2022 and June 30, 2021, respectively. These purchase and sale amounts exclude derivative instruments as well as non-cash restructurings.

 

Year ended June 30,

 

2023

 

2022

 

2021

Investment purchases, at cost (including PIK interest)

 

$

53,237,881

 

$

145,380,662

 

$

92,065,783

Investment sales and repayments

 

 

61,928,745

 

 

153,877,788

 

 

108,183,417
Schedule of Investments

The composition of the Company’s investments as of June 30, 2023, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:

Investment Type

 

Investments at
Amortized Cost

 

 

Percentage of
Total Portfolio

 

Investments at
Fair Value

 

 

Percentage of
Total Portfolio

Senior Secured First Lien Debt Investments

 

$

214,100,857

 

 

88.00

%

 

$

196,370,955

 

 

89.21

%

Equity, Warrants and Other Investments

 

 

29,197,959

 

 

12.00

 

 

 

23,740,374

 

 

10.79

 

Total

 

$

243,298,816

 

 

100.00

%

 

$

220,111,329

 

 

100.00

%

 

The composition of the Company’s investments as of June 30, 2022, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:

Investment Type

 

Investments at
    Amortized Cost

 

 

Percentage of
Total Portfolio

 

Investments at
Fair Value

 

 

Percentage of
Total Portfolio

Senior Secured First Lien Debt Investments

 

$

234,117,747

 

 

84.35

%

 

$

214,858,037

 

 

91.94

%

Senior Secured Second Lien Debt Investments

 

 

17,374,608

 

 

6.26

 

 

 

—

 

 

—

 

Equity, Warrants and Other Investments

 

 

26,075,650

 

 

9.39

 

 

 

18,825,949

 

 

8.06

 

Total

 

$

277,568,005

 

 

100.00

%

 

$

233,683,986

 

 

100.00

%
Schedule of Portfolio Composition by Industry Grouping at Fair Value

The Company uses Global Industry Classification Standard (“GICS”) codes to identify the industry groupings in its portfolio. The following table shows the portfolio composition by industry grouping at fair value at June 30, 2023:

Industry Classification

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

Trading Companies & Distributors

 

$

35,176,879

 

15.98

%

Professional Services

 

 

28,238,167

 

12.83

 

IT Services

 

 

23,576,450

 

10.71

 

Commercial Services & Supplies

 

 

14,329,460

 

6.51

 

Software

 

 

13,772,487

 

6.26

 

Containers & Packaging

 

 

12,958,772

 

5.89

 

Machinery

 

 

9,602,806

 

4.36

 

Internet & Direct Marketing Retail

 

 

8,969,729

 

4.08

 

Entertainment

 

 

7,640,000

 

3.47

 

Household Durables

 

 

7,610,242

 

3.46

 

Chemicals

 

 

7,568,617

 

3.44

 

Diversified Consumer Services

 

 

7,268,500

 

3.30

 

Automobile Components

 

 

7,261,275

 

3.30

 

Hotels, Restaurants, and Leisure

 

 

6,283,541

 

2.85

 

Consumer Staples Distribution & Retail

 

 

6,061,396

 

2.75

 

Specialty Retail

 

 

5,148,000

 

2.34

 

Building Products

 

 

4,511,719

 

2.05

 

Food Products

 

 

4,288,750

 

1.95

 

Automotive Retail

 

 

3,878,905

 

1.76

 

Electronic Equipment, Instruments & Components

 

 

3,265,598

 

1.48

 

Energy Equipment & Services

 

 

2,700,036

 

1.23

 

Total

 

$

220,111,329

 

100.00

%

 

The following table shows the portfolio composition by industry grouping at fair value at June 30, 2022:

Industry Classification

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

Professional Services

 

$

26,984,194

 

11.55

%

IT Services

 

 

21,608,522

 

9.25

 

Internet & Direct Marketing Retail

 

 

21,070,294

 

9.02

 

Household Durables

 

 

17,330,053

 

7.42

 

Trading Companies & Distributors

 

 

15,706,496

 

6.72

 

Commercial Services & Supplies

 

 

15,482,455

 

6.62

 

Chemicals

 

 

14,030,222

 

6.00

 

Energy Equipment & Services

 

 

13,055,904

 

5.59

 

Distributors

 

 

12,300,418

 

5.26

 

Consumer Finance

 

 

11,375,840

 

4.87

 

Software

 

 

8,800,751

 

3.77

 

Entertainment

 

 

7,954,388

 

3.40

 

Auto Components

 

 

7,934,024

 

3.39

 

Food & Staples Retailing

 

 

7,920,000

 

3.39

 

Containers & Packaging

 

 

7,247,557

 

3.10

 

Diversified Consumer Services

 

 

6,721,225

 

2.88

 

Specialty Retail

 

 

5,940,000

 

2.54

 

Building Products

 

 

4,720,312

 

2.02

 

Food Products

 

 

4,547,812

 

1.95

 

Electronic Equipment, Instruments & Components

 

 

2,953,519

 

1.26

 

Total

 

$

233,683,986

 

100.00

%
Schedule of Portfolio Composition by Geographic Grouping at Fair Value

The following table shows the portfolio composition by geographic grouping at fair value at June 30, 2023:

Geographic Region

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

U.S. Northeast

 

$

94,658,227

 

43.00

%

U.S. West

 

 

44,911,266

 

20.40

 

U.S. Midwest

 

 

26,602,440

 

12.09

 

U.S. Southeast

 

 

20,803,349

 

9.45

 

U.S. Mid-Atlantic

 

 

17,721,607

 

8.05

 

U.S. Southwest

 

 

10,367,607

 

4.71

 

International

 

 

5,046,833

 

2.30

 

Total

 

$

220,111,329

 

100.00

%

The following table shows the portfolio composition by geographic grouping at fair value at June 30, 2022:

Geographic Region

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

U.S. Northeast

 

$

105,824,484

 

45.29

%

U.S. West

 

 

48,352,026

 

20.69

 

U.S. Midwest

 

 

31,898,956

 

13.65

 

U.S. Mid-Atlantic

 

 

17,507,192

 

7.49

 

U.S. Southwest

 

 

15,685,215

 

6.71

 

U.S. Southeast

 

 

14,381,725

 

6.16

 

International

 

 

34,388

 

0.01

 

Total

 

$

233,683,986

 

100.00

%
Schedule of Fair Value Measurements of Assets

The following table summarizes the classifications within the fair value hierarchy of the Company’s assets and liabilities measured at fair value as of June 30, 2023:

 

 

Level 1

 

Level 2

 

 

Level 3

 

Total

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Secured First Lien Debt Investments

 

$

—

 

$

—

 

 

$

196,370,955

 

$

196,370,955

Equity, Warrants and Other Investments

 

 

—

 

 

—

 

 

 

23,740,374

 

 

23,740,374

Total Investments

 

$

—

 

$

—

 

 

$

220,111,329

 

$

220,111,329

 

The following table summarizes the classifications within the fair value hierarchy of the Company’s assets and liabilities measured at fair value as of June 30, 2022:

 

Level 1

 

Level 2

 

Level 3

 

Total

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

Senior Secured First Lien Debt Investments

 

$

—

 

$

—

 

$

214,858,036

 

$

214,858,036

Senior Secured Second Lien Debt Investments

 

 

—

 

 

—

 

 

—

 

 

—

Equity, Warrants and Other Investments

 

 

—

 

 

—

 

 

18,825,950

 

 

18,825,950

Total Investments

 

$

—

 

$

—

 

$

233,683,986

 

$

233,683,986
Schedule of Reconciliation of Investments Measured at Fair Value on a Recurring Basis Using Level 3 Inputs

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended June 30, 2023:

 

 

Senior Secured
First Lien
Debt Investments

 

Senior Secured
Second Lien
Debt Investments

 

Unsecured
Debt
Investments

 

Equity, Warrants
and Other
Investments

 

Total
Investments

Fair value at June 30, 2022

 

$

214,858,036

 

$

—

 

$

—

 

$

18,825,950

 

$

233,683,986

Purchases (including PIK interest)

 

 

51,824,515

 

 

—

 

 

—

 

 

1,413,366

 

 

53,237,881

Sales

 

 

(61,928,745)

 

 

—

 

 

—

 

 

—

 

 

(61,928,745)

Amortization

 

 

1,311,770

 

 

—

 

 

—

 

 

—

 

 

1,311,770

Net realized gains (losses)

 

 

(9,515,487)

 

 

(17,374,608)

 

 

—

 

 

—

 

 

(26,890,095)

Transfers in

 

 

—

 

 

—

 

 

—

 

 

1,708,942

 

 

1,708,942

Transfers out

 

 

(1,708,942)

 

 

—

 

 

—

 

 

—

 

 

(1,708,942)

Net change in unrealized appreciation (depreciation)

 

 

1,529,808

 

 

17,374,608

 

 

—

 

 

1,792,116

 

 

20,696,532

Fair value at June 30, 2023

 

$

196,370,955

 

$

—

 

$

—

 

$

23,740,374

 

$

220,111,329

Change in unrealized appreciation (depreciation) relating to assets still held as of June 30, 2023

 

$

(7,507,021)

 

$

—

 

$

—

 

$

1,377,567

 

$

(6,129,454)

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended June 30, 2022:

 

Senior Secured
First Lien
Debt Investments

 

Senior Secured
Second Lien
Debt Investments

 

Unsecured
Debt
Investments

 

Equity, Warrants
and Other
Investments

 

Total
Investments

Fair value at June 30, 2021

 

$

230,351,618

 

$

6,240,000

 

$

—

 

$

9,264,002

 

$

245,855,620

Purchases (including PIK interest)

 

 

136,101,744

 

 

—

 

 

—

 

 

9,278,918

 

 

145,380,662

Sales

 

 

(145,707,097)

 

 

(8,000,000)

 

 

—

 

 

(170,691)

 

 

(153,877,788)

Amortization

 

 

2,598,931

 

 

63,875

 

 

—

 

 

—

 

 

2,662,806

Net realized gains (losses)

 

 

(11,580,771)

 

 

—

 

 

—

 

 

(2,814,660)

 

 

(14,395,431)

Transfers in

 

 

—

 

 

—

 

 

—

 

 

1,184,506

 

 

1,184,506

Transfers out

 

 

(1,184,506)

 

 

—

 

 

—

 

 

—

 

 

(1,184,506)

Net change in unrealized (depreciation) appreciation

 

 

4,278,117

 

 

1,696,125

 

 

—

 

 

2,083,875

 

 

8,058,117

Fair value at June 30, 2022

 

$

214,858,036

 

$

—

 

$

—

 

$

18,825,950

 

$

233,683,986

Change in unrealized appreciation (depreciation) relating to assets still held as of June 30, 2022

 

$

(6,326,622)

 

$

—

 

$

—

 

$

2,083,876

 

$

(4,242,746)
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.

 

 

Fair Value
 as of June 30, 2023

 

Valuation
Methodology

 

Unobservable
Input(s)

 

Weighted
Average

 

Range

Senior Secured First Lien Debt Investments

 

$

161,776,983

 

 Income Approach

 

 Market Yields

 

13.3%

 

 

10.1%-18.0%

Senior Secured First Lien Debt Investments

 

 

13,895,260

 

 Market Comparable Approach

 

 EBITDA Multiple

 

17.3x

 

 

5.7x-21.2x

Senior Secured First Lien Debt Investments

 

 

5,272,355

 

 Market Comparable Approach

 

 Revenue Multiple

 

0.3x

 

 

0.30x-0.38x

Senior Secured First Lien Debt Investments

 

 

15,209,280

 

 Recent Transaction

 

 Recent Transaction

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

217,077

 

 Recovery Analysis

 

 Recovery Amount

 

N/A

 

 

N/A

Equity, Warrants, and Other Investments

 

 

4,824,752

 

 Income Approach

 

 Market Yields

 

18.0%

 

 

18.0%

Equity, Warrants, and Other Investments

 

 

18,915,622

 

 Market Comparable Approach

 

 EBITDA multiple

 

8.7x

 

 

5.7x-24.2x

Equity, Warrants, and Other Investments

 

 

—

 

 Market Comparable Approach

 

 Revenue Multiple

 

0.3x

 

 

0.3x

 

 

Fair Value as of
June 30, 2022

 

Valuation
Methodology

 

Unobservable
Input(s)

 

Weighted
Average

 

 

Range

Senior Secured First Lien Debt Investments

 

$

164,896,036

 

Income Approach

 

Market Yields

 

10.8%

 

 

8.0% - 24.6%

Senior Secured First Lien Debt Investments

 

 

7,203,875

 

Market Comparable Approach

 

EBITDA Multiple

 

6.7x

 

 

4.4x – 7.0x

Senior Secured First Lien Debt Investments

 

 

2,712,779

 

Market Comparable Approach

 

Revenue Multiple

 

0.4x

 

 

0.3x – 0.4x

Senior Secured First Lien Debt Investments

 

 

39,551,804

 

Recent Transaction

 

Recent Transaction

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

493,542

 

Recovery Analysis

 

Recovery Amount

 

N/A

 

 

N/A

Equity, Warrants and Other Investments

 

 

17,825,950

 

Income Approach

 

EBITDA Multiple

 

6.6x

 

 

4.2x – 12.3x

Equity, Warrants and Other Investments

 

 

—

 

Market Comparable Approach

 

Revenue Multiple

 

0.4x

 

 

0.3x – 0.4x

Equity, Warrants and Other Investments

 

 

1,000,000

 

Recent Transaction

 

Recent Transaction

 

N/A

 

 

N/A