NPORT-EX 3 notes.htm NPORT-EX
Perritt Funds, Inc.
      
Notes to the Schedule of Investments (Unaudited)
 
 
 
July 31, 2021
             
             
1. Security Valuation
            
             
Exchange-listed securities are generally valued at the last sales price reported by the principal security exchange on which the issue is traded, or if no sale
  
is reported, the mean between the latest bid and ask price unless the Funds' investment advisor believes that the mean does not represent a fair value, in
  
which case the securities are valued as set forth below. Securities listed on NASDAQ are valued at the NASDAQ Official Closing Price. Demand notes,
  
commercial paper, U.S. Treasury Bills and warrants are stated at fair value using market prices if available, or a pricing service when such prices are
  
believed to reflect fair value. Securities for which market quotations are not readily available are valued at their fair value as determined in good faith by
  
the Funds' advisor under procedures established by and under the supervision of the Board of Directors of the Fund. The Funds' fair value procedures allow
  
for the use of certain methods performed by the Funds' advisor to value those securities for which market quotations are not readily available, at a price
  
that a Fund might reasonably expect to receive upon a sale of such securities. For example, these methods may be based on a multiple of earnings, or a discount
  
from market of a similarly freely traded security, or a yield to maturity with respect to debt issues, or a combination of these and other methods.
    
             
The Funds' may invest in warrants or rights (other than those acquired in units or attached to other securities), which entitle the purchaser to buy
  
equity securities at a specific price for a specific period of time.  Warrants and rights have no voting rights, receive no dividends and have no rights with
  
respect to the assets of the issuer.
            
             
General Accepted Accounting Principles ("GAAP") establishes an authoritative definition of fair value and sets out a hierarchy for measuring fair value.
  
GAAP also requires additional disclosures about the various inputs used to develop the measurements of fair value.  These inputs are summarized in the
  
three broad levels listed below:
            
             
• Level 1 - Quoted prices in active markets for identical securities
          
• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
    
• Level 3 - Significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments).
    
             
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The
  
following is a summary of the inputs used to value the Funds' securities as of July 31, 2021:
        

Perritt MicroCap Opportunities Fund
                        
Description
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Investments in Securities
                        
Common Stocks
                        
Communication Services
  
$
1,971,397
    
$
-
    
$
-
    
$
1,971,397
  
Consumer Discretionary
    
8,299,671
      
-
      
-
      
8,299,671
  
Consumer Staples
    
564,350
      
-
      
-
      
564,350
  
Energy
    
1,181,860
      
-
      
-
      
1,181,860
  
Financials
    
9,873,366
      
-
      
-
      
9,873,366
  
Health Care
    
3,256,340
      
-
      
-
      
3,256,340
  
Industrials
    
21,513,997
      
-
      
-
      
21,513,997
  
Information Technology
    
15,871,523
      
-
      
-
      
15,871,523
  
Materials
    
6,251,845
      
-
      
-
      
6,251,845
  
Utilities
    
773,000
      
-
      
-
      
773,000
  
Total Common Stocks
    
69,557,349
      
-
      
-
      
69,557,349
  
Short Term Investments
    
724,954
      
-
      
-
      
724,954
  
Total Investments in Securities
  
$
70,282,303
    
$
-
    
$
-
    
$
70,282,303
  
                                 
Perritt Ultra MicroCap Fund
                                
Description
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Investments in Securities
                                
Common Stocks
                                
Communication Services
  
$
922,070
    
$
-
    
$
-
    
$
922,070
  
Consumer Discretionary
    
1,349,500
      
266,000
      
-
      
1,615,500
  
Consumer Staples
    
501,040
      
-
      
-
      
501,040
  
Energy
    
379,611
      
-
      
-
      
379,611
  
Financials
    
1,283,400
      
-
      
-
      
1,283,400
  
Health Care
    
2,011,372
      
-
      
-
      
2,011,372
  
Industrials
    
4,265,277
      
-
      
-
      
4,265,277
  
Information Technology
    
6,083,944
      
204,000
      
-
      
6,287,944
  
Materials
    
1,315,698
      
-
      
-
      
1,315,698
  
Real Estate Investment Trusts
    
510,544
      
-
      
-
      
510,544
  
Utilities
    
352,400
      
-
      
-
      
352,400
  
Total Common Stocks
    
18,974,856
      
470,000
      
-
      
19,444,856
  
Warrants
                                
Health Care
    
-
      
0
      
-
      
0
  
Materials
    
15,450
      
-
      
-
      
15,450
  
Total Warrants
    
15,450
      
-
      
-
      
15,450
  
Short Term Investments
    
325,425
      
-
      
-
      
325,425
  
Total Investments in Securities
  
$
19,315,731
    
$
470,000
    
$
-
    
$
19,785,731
  
                                 
During the nine months ended July 31, 2021, the Microcap Fund and the Ultra Microcap Fund did not hold any Level 3 securities.