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Investments (Tables)
 6 Months Ended
Dec. 31, 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 and six months ended December 31, 2023 and December 31, 2022, respectively. These purchase and sale amounts exclude derivative instruments as well as non-cash restructurings.

 

 

For the three months ended
December 31,

 

For the six months ended
December 31,

 

2023

 

2022

 

2023

 

2022

Investment purchases, at cost (including PIK interest)

 

$

19,772,673

 

$

6,378,958

 

$

36,307,962

 

$

28,526,813

Investment sales and repayments

 

 

31,812,232

 

 

15,604,801

 

 

42,129,589

 

 

32,081,500
Schedule of Investments

The composition of the Company’s investments as of December 31, 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

 

$

194,545,139

 

 

83.69

%

 

$

176,208,787

 

 

84.97

%

Equity, Warrants and Other Investments

 

 

37,908,552

 

 

16.31

 

 

 

31,172,766

 

 

15.03

 

Total

 

$

232,453,691

 

 

100.00

%

 

$

207,381,553

 

 

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 December 31, 2023:

Industry Classification

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

Trading Companies & Distributors

 

$

28,249,561

 

13.62

%

Commercial Services & Supplies

 

 

19,906,698

 

9.60

 

Professional Services

 

 

18,131,730

 

8.74

 

Containers & Packaging

 

 

14,521,174

 

7.00

 

IT Services

 

 

8,991,883

 

4.34

 

Broadline Retail

 

 

8,845,149

 

4.27

 

Machinery

 

 

8,532,245

 

4.11

 

Food Products

 

 

8,521,875

 

4.11

 

Entertainment

 

 

8,147,956

 

3.93

 

Household Durables

 

 

7,726,906

 

3.72

 

Chemicals

 

 

7,562,535

 

3.65

 

Hotels, Restaurants, and Leisure

 

 

7,306,646

 

3.52

 

Diversified Consumer Services

 

 

7,231,604

 

3.49

 

Software

 

 

6,915,579

 

3.33

 

Specialty Retail

 

 

6,753,367

 

3.26

 

Automobile Components

 

 

5,952,046

 

2.87

 

Consumer Services

 

 

4,874,611

 

2.35

 

Consumer Staples Distribution & Retail

 

 

4,835,316

 

2.33

 

Building Products

 

 

4,380,000

 

2.11

 

Automotive Retail

 

 

4,070,101

 

1.96

 

Health Care Providers & Services

 

 

4,000,000

 

1.93

 

Construction & Engineering

 

 

3,870,354

 

1.87

 

Paper Packaging

 

 

2,880,153

 

1.39

 

Electronic Equipment, Instruments & Components

 

 

2,649,504

 

1.28

 

Energy Equipment & Services

 

 

2,524,560

 

1.22

 

Total

 

$

207,381,553

 

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 December 31, 2023:

Geographic Region

 

Investments at
Fair Value

 

Percentage of
Total Portfolio

U.S. Northeast

 

$

79,150,176

 

38.17

%

U.S. West

 

 

59,667,451

 

28.77

 

U.S. Midwest

 

 

26,328,881

 

12.70

 

U.S. Southeast

 

 

22,673,605

 

10.93

 

U.S. Southwest

 

 

8,031,743

 

3.87

 

U.S. Mid-Atlantic

 

 

6,562,134

 

3.16

 

International

 

 

4,967,563

 

2.40

 

Total

 

$

207,381,553

 

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 December 31, 2023:

 

 

Level 1

 

Level 2

 

 

Level 3

 

Total

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Secured First Lien Debt Investments

 

$

—

 

$

—

 

 

$

176,208,787

 

$

176,208,787

Equity, Warrants and Other Investments

 

 

—

 

 

—

 

 

 

31,172,766

 

 

31,172,766

Total Investments

 

$

—

 

$

—

 

 

$

207,381,553

 

$

207,381,553

 

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 six months ended December 31, 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, 2023

 

$

196,370,955

 

$

—

 

$

—

 

$

23,740,374

 

$

220,111,329

Purchases (including PIK interest)

 

 

31,897,279

 

 

—

 

 

—

 

 

4,410,683

 

 

36,307,962

Sales and repayments

 

 

(42,129,589)

 

 

—

 

 

—

 

 

—

 

 

(42,129,589)

Amortization

 

 

847,541

 

 

—

 

 

—

 

 

—

 

 

847,541

Net realized gains (losses)

 

 

(5,808,927)

 

 

—

 

 

—

 

 

(62,112)

 

 

(5,871,039)

Transfers in

 

 

—

 

 

—

 

 

—

 

 

4,362,023

 

 

4,362,023

Transfers out

 

 

(4,362,023)

 

 

—

 

 

—

 

 

—

 

 

(4,362,023)

Net change in unrealized appreciation (depreciation)

 

 

(606,449)

 

 

—

 

 

—

 

 

(1,278,202)

 

 

(1,884,651)

Fair value at December 31, 2023

 

$

176,208,787

 

$

—

 

$

—

 

$

31,172,766

 

$

207,381,553

Change in unrealized appreciation (depreciation) relating to assets still held as of December 31, 2023

 

$

(2,956,648)

 

$

—

 

$

—

 

$

(1,340,315)

 

$

(4,296,963)

The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended December 31, 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)

 

 

27,888,672

 

 

—

 

 

—

 

 

638,141

 

 

28,526,813

Sales and repayments

 

 

(32,081,500)

 

 

—

 

 

—

 

 

—

 

 

(32,081,500)

Amortization

 

 

874,796

 

 

—

 

 

—

 

 

—

 

 

874,796

Net realized gains (losses)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers in

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Transfers out

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Net change in unrealized (depreciation) appreciation

 

 

(3,086,971)

 

 

—

 

 

—

 

 

676,534

 

 

(2,410,437)

Fair value at December 31, 2022

 

$

208,453,033

 

$

—

 

$

—

 

$

20,140,625

 

$

228,593,658

Change in unrealized appreciation (depreciation) relating to assets still held as of December 31, 2022

 

$

(3,021,829)

 

$

—

 

$

—

 

$

676,535

 

$

(2,345,294)
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 December 31, 2023

 

Valuation
Methodology

 

Unobservable
Input(s)

 

Weighted
Average

 

Range

Senior Secured First Lien Debt Investments

 

$

148,521,563

 

 Income Approach

 

 Market Yields

 

13.7%

 

 

10.1%-20.0%

Senior Secured First Lien Debt Investments

 

 

3,581,232

 

 Market Comparable Approach

 

 EBITDA Multiple

 

8.5x

 

 

6.4x-9.0x

Senior Secured First Lien Debt Investments

 

 

2,384,458

 

 Market Comparable Approach

 

 Revenue Multiple

 

0.31x

 

 

0.31x

Senior Secured First Lien Debt Investments

 

 

14,510,901

 

 Recent Transaction

 

 Recent Transaction

 

N/A

 

 

N/A

Senior Secured First Lien Debt Investments

 

 

7,210,633

 

 Recovery Analysis

 

 Recovery Amount

 

N/A

 

 

N/A

Equity, Warrants, and Other Investments

 

 

5,816,982

 

 Income Approach

 

 Market Yields

 

17.1%

 

 

17.1%

Equity, Warrants, and Other Investments

 

 

21,355,784

 

 Market Comparable Approach

 

 EBITDA multiple

 

9.6x

 

 

5.2x-28.3x

Equity, Warrants, and Other Investments

 

 

4,000,000

 

 Recent Transaction

 

 Recent Transaction

 

N/A

 

 

N/A

 

 

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