The
following
is
a
reconciliation
of
Level
3
investments
for
which
significant
unobservable
inputs
were
used
to
determine
fair
value.
*
The
change
in
unrealized
appreciation/(depreciation)
is
included
in
net
change
in
unrealized
appreciation/(depreciation)
of
investments
in
the
accompanying
Statement
of
Operations.
Significant
unobservable
inputs
developed
by
the
valuation
designee
for
Level
3
investments
held
at
February
29,
2024
are
as
follows:
1
This
column
represents
the
directional
change
in
the
fair
value
of
the
level
3
investments
that
would
result
from
an
increase
to
the
corresponding
unobservable
input.
A
decrease
to
the
unobservable
input
would
have
the
opposite
effect
2
Fair
valued
corporate
convertible
bonds
are
valued
based
on
applying
a
fixed
discount
rate
to
the
fixed
income
portion,
which
represents
the
implied
interest
rate
that
would
have
valued
the
entire
corporate
convertible
bond
at
the
time
of
issuance.
3
Fair
valued
common
shares
with
no
public
market
are
valued
based
on
transaction
cost
or
latest
round
of
financing.
4
Fair
valued
rights
are
valued
based
on
the
specifics
of
the
rights
at
a
discount
to
the
market
price
of
the
underlying
security.
5
Warrants
are
priced
based
on
the
Black
Scholes
Method;
the
key
input
to
this
method
is
modeled
volatility
of
the
investment;
the
lower
the
modeled
volatility,
the
lower
the
valuation
of
the
warrant.
Corporate
Convertible
Bond
Common
Stock
Rights
Warrants
Balance
November
30,
2023
$
2,889,300
$
9,477,500
$
91,808
$
1,208,510
Purchases
-
2,016,000
-
-
Sales
-
-
-
-
Realized
loss
-
-
-
(
515,928
)
Accretion
of
discount
3,951
-
-
-
Net
change
in
unrealized
appreciation
(depreciation)
(
19,551
)
(27,220)
(
19,053
)
1,109,781
Balance
February
29,
2024
$
2,
8
73
,
7
00
$
11,466,280
$
72,755
$
1,
802,763
Net
change
in
unrealized
appreciation
(depreciation)
from
investments
held
as
of
February
29,
2024*
$
(
19,551
)
$
(27,220)
$
(
19
,
053
)
$
1,109,781
Asset
Categories
Fair
Value
Valuation
Technique(s)
Unobservable
Input
Range
(Weighted
Average)
Impact
to
Valuation
from
an
Increase
in
Input
1
Corporate
Convertible
Bond
2
$
2,
873
,
7
00
Implied
Interest
Rate
Discount
4
%
(
4
%)
Increase
Common
Shares
3
11,466,280
Transaction
Cost/
Latest
Round
of
Financing
None
None
None
Rights
4
72,755
Market
T
ransaction
Discount
70%
(70%)
Increase
Warrants
5
1,802,763
Black
Scholes
Method
Volatility
20
%
-
50
%
(
39
%)
Increase