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Investments (Tables)
 3 Months Ended
Sep. 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 three months ended September 30, 2023 and September 30, 2022, respectively. These purchase and sale amounts exclude derivative instruments as well as non-cash restructurings.

 

 

For the three months ended September 30,

 

2023

 

2022

Investment purchases, at cost (including PIK interest)

 

$

16,535,289

 

$

22,147,855

Investment sales and repayments

 

 

10,317,357

 

 

16,476,699

 
Schedule of Investments

The composition of the Company’s investments as of September 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

 

$

220,517,589

 

 

88.24

%

 

$

200,319,576

 

 

89.67

%

Equity, Warrants and Other Investments

 

 

29,386,210

 

 

11.76

 

 

 

23,084,707

 

 

10.33

 

Total

 

$

249,903,799

 

 

100.00

%

 

$

223,404,283

 

 

100.00

%

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

%
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 September 30, 2023:

Industry Classification

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

Trading Companies & Distributors

 

$

38,219,681

 

17.11

%

Professional Services

 

 

25,728,030

 

11.52

 

IT Services

 

 

16,830,075

 

7.53

 

Software

 

 

13,736,438

 

6.15

 

Containers & Packaging

 

 

13,558,591

 

6.07

 

Commercial Services & Supplies

 

 

13,493,554

 

6.04

 

Machinery

 

 

8,967,989

 

4.01

 

Internet & Direct Marketing Retail

 

 

8,907,439

 

3.99

 

Household Durables

 

 

7,766,091

 

3.48

 

Entertainment

 

 

7,600,000

 

3.40

 

Chemicals

 

 

7,527,189

 

3.37

 

Diversified Consumer Services

 

 

7,250,052

 

3.25

 

Hotels, Restaurants, and Leisure

 

 

7,171,656

 

3.21

 

Automobile Components

 

 

6,158,497

 

2.76

 

Consumer Staples Distribution & Retail

 

 

5,606,790

 

2.51

 

Specialty Retail

 

 

5,059,875

 

2.26

 

Consumer Services

 

 

4,915,732

 

2.20

 

Building Products

 

 

4,474,688

 

2.00

 

Automotive Retail

 

 

4,017,057

 

1.80

 

Food Products

 

 

4,005,000

 

1.79

 

Construction & Engineering

 

 

3,937,532

 

1.76

 

Paper Packaging

 

 

3,000,000

 

1.34

 

Electronic Equipment, Instruments & Components

 

 

2,852,627

 

1.28

 

Energy Equipment & Services

 

 

2,619,700

 

1.17

 

Total

 

$

223,404,283

 

100.00

%

 

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

%
Schedule of Portfolio Composition by Geographic Grouping at Fair Value

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

Geographic Region

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

U.S. Northeast

 

$

86,530,253

 

38.73

%

U.S. West

 

 

48,391,784

 

21.66

 

U.S. Midwest

 

 

27,364,696

 

12.25

 

U.S. Mid-Atlantic

 

 

22,911,655

 

10.26

 

U.S. Southeast

 

 

20,636,714

 

9.24

 

U.S. Southwest

 

 

12,601,618

 

5.64

 

International

 

 

4,967,563

 

2.22

 

Total

 

$

223,404,283

 

100.00

%

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

%
Schedule of Fair Value Measurements of Assets

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

 

 

Level 1

 

Level 2

 

 

Level 3

 

Total

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Secured First Lien Debt Investments

 

$

—

 

$

—

 

 

$

200,319,576

 

$

200,319,576

Equity, Warrants and Other Investments

 

 

—

 

 

—

 

 

 

23,084,707

 

 

23,084,707

Total Investments

 

$

—

 

$

—

 

 

$

223,404,283

 

$

223,404,283

 

The following table summarizes the classifications within the fair value hierarchy of the Company’s assets 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
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 three months ended September 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 September 30, 2022

 

$

196,370,955

 

$

—

 

$

—

 

$

23,740,374

 

$

220,111,329

Purchases (including PIK interest)

 

 

16,347,037

 

 

—

 

 

—

 

 

188,252

 

 

16,535,289

Sales and repayments

 

 

(10,317,357)

 

 

—

 

 

—

 

 

—

 

 

(10,317,357)

Amortization

 

 

387,051

 

 

—

 

 

—

 

 

—

 

 

387,051

Net realized gains (losses)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers in

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers out

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Net change in unrealized appreciation (depreciation)

 

 

(2,468,110)

 

 

—

 

 

—

 

 

(843,919)

 

 

(3,312,029)

Fair value at September 30, 2023

 

$

200,319,576

 

$

—

 

$

—

 

$

23,084,707

 

$

223,404,283

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

 

$

(2,468,109)

 

$

—

 

$

—

 

$

(843,919)

 

$

(3,312,028)

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended September 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, 2022

 

$

214,858,036

 

$

—

 

$

—

 

$

18,825,950

 

$

233,683,986

Purchases (including PIK interest)

 

 

21,781,406

 

 

—

 

 

—

 

 

366,449

 

 

22,147,855

Sales and repayments

 

 

(16,476,699)

 

 

—

 

 

—

 

 

—

 

 

(16,476,699)

Amortization

 

 

501,016

 

 

—

 

 

—

 

 

—

 

 

501,016

Net realized gains (losses)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers in

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers out

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Net change in unrealized (depreciation) appreciation

 

 

(1,130,564)

 

 

—

 

 

—

 

 

451,967

 

 

(678,597)

Fair value at September 30, 2022

 

$

219,533,195

 

$

—

 

$

—

 

$

19,644,366

 

$

239,177,561

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

 

$

(1,022,903)

 

$

—

 

$

—

 

$

451,968

 

$

(570,935)
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 September 30, 2023

 

Valuation
Methodology

 

Unobservable
Input(s)

 

Weighted
Average

 

Range

Senior Secured First Lien Debt Investments

 

$

167,661,231

 

 Income Approach

 

 Market Yields

 

13.4%

 

 

9.9%-18.1%

Senior Secured First Lien Debt Investments

 

 

6,294,430

 

 Market Comparable Approach

 

 EBITDA Multiple

 

5.3x

 

 

5.2x-5.8x

Senior Secured First Lien Debt Investments

 

 

2,418,108

 

 Market Comparable Approach

 

 Revenue Multiple

 

0.27x

 

 

0.27x

Senior Secured First Lien Debt Investments

 

 

14,853,263

 

 Recent Transaction

 

 Recent Transaction

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

9,092,544

 

 Recovery Analysis

 

 Recovery Amount

 

N/A

 

 

N/A

Equity, Warrants, and Other Investments

 

 

5,593,082

 

 Income Approach

 

 Market Yields

 

17.1%

 

 

17.1%

Equity, Warrants, and Other Investments

 

 

17,491,625

 

 Market Comparable Approach

 

 EBITDA multiple

 

8.9x

 

 

4.7x-21.9x

 

 

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