As of December 31, 2019, the Company’s investments consisted of the following:

The majority of the Company’s investments are in the form of participation interests (“Participations”). Participations are interests in financing facilities originated by one of the Company’s sub-advisors. Participations may be interests in one specific loan or trade finance transaction, several loans or trade finance transactions under a facility, or may be interests in an entire facility. The Company’s rights under Participations include, without limitation, all corresponding rights in payments, collateral, guaranties, and any other security interests obtained by the respective sub-advisor in the underlying financing facilities.

Depending on the specific terms of the Company’s investments, interest earned by the Company is payable either monthly, quarterly, or, in the case of most trade finance investments, at maturity. As such, some of the Company’s trade finance investments have up to a year of accrued interest receivable as of June 30, 2020. In addition, certain of the Company’s investments in term loans accrue deferred interest, which is not payable until the maturity of the loans. Accrued deferred interest included in the interest receivable balance as of June 30, 2020 and December 31, 2019 amounted to $3,056,770 and $2,796,466, respectively. The Company’s interest receivable balances at June 30, 2020 and December 31, 2019 are recorded at the amounts that the Company expects to collect.

Trade finance encompasses a variety of lending structures that support the export, import or sale of goods between producers and buyers in various countries and across various jurisdictions. The strategy is most prevalent in the financing of commodities. The Company’s Participations in trade finance positions typically fall into two broad categories: pre-export financing and receivable/inventory financing. Pre-export financing represents advances to borrowers based on proven orders from buyers. Receivable/inventory financing represents advances on borrowers’ eligible receivable and inventory balances. For trade finance, the structure and terms of the facility underlying the Company’s Participations vary according to the nature of the transaction being financed. The structure can take the form of a revolver with multiple draw requests and maturity of up to one year based on collateral and performance requirements. The structure can also be specific to the individual transaction being financed, which typically have shorter durations of 60 – 180 days. With respect to underwriting, particular consideration is given to the following:

Collateral varies by transaction, but is typically raw or finished goods inventory, and/or receivables. In the case of pre-export finance, the transaction is secured by purchase orders from buyers or offtake contracts, which are agreements between a buyer and seller to purchase/sell a future product.

Terms depend on the nature of the facility or transaction being financed. As such, they depend on the credit profile of the underlying financing, as well as the speed and detail associated with the request for financing. Interest can be paid as often as monthly or quarterly on revolving facilities (one year in duration) or at maturity when dealing with specific transactions with shorter duration, which is the case for the majority of the Company’s trade finance positions. At times, settlement can be delayed due to documentation, shipment, transportation or port clearing issues, delays associated with the end buyer or off-taker assuming possession, possible changes to contract or offtake terms, and the aggregation of settlement of multiple individual transactions. Conversely, at times payments are made ahead of schedule, as transactions either clear faster than expected, borrowers decide to prepay or pay down ahead of schedule, counterparties clear multiple individual transactions in one settlement, or less expensive financing is secured by the borrower.

On occasion, the Company may receive notice from the respective sub-advisor that a borrower or counterparty to a financing facility underlying one of the Company’s Participations intends to pay ahead of schedule or in one lump sum (settling multiple draw requests all at once). Depending on timing and the ability to redeploy these funds, combined with projected inflows of fund capital, these outsize payments can negatively impact the Company’s performance. In these situations, the credit profile of the borrower, and the transaction in general, is reviewed with the sub-advisor and a request may be made to either stagger payments, where at all possible, or request that payment only be made at the end of that specific financial quarter. These requests or accommodations, which happen very rarely, will only be made where the Company has strong comfort in and around the credit profile of the transaction or borrower.

Short term investments are defined by the Company as investments that generally meet the standard underwriting guidelines for trade finance and term loan transactions and that also have the following characteristics: (1) maturity of less than one year, (2) loans to borrowers to whom, at the time of funding, the Company does not expect to re-lend. Impact data is not tracked for short term investments.

Certain investments, including loans and participations, may carry equity warrants, which allow the Company to buy shares of the portfolio company at a given price, which the Company may exercise at its discretion during the life of the portfolio company. The Company’s goal is to ultimately dispose of such equity interests and realize gains upon the disposition of such interests. However, these warrants and equity interests are generally illiquid and it may be difficult for the Company to dispose of them. In addition, the Company expects that any warrants or other return enhancements received when the Company makes or invests in loans may require several years to appreciate in value and may not appreciate at all.

The Company monitors and reviews the performance of its investments and if the Company determines that there are any significant changes in the credit and collection risk of an investment, the investment will be placed on the Watch List. The Company places an investment on the Watch List when it believes the investment has material performance weakness driven by company-specific and macro events that may affect the timing of future cash flows. For all Watch List investments, the Company evaluates: (i) liquidation value of collateral; (ii) rights and remedies enforceable against the borrower; (iii) any credit insurance and/or guarantees; (iv) market, sector and macro events and (v) other relevant information (e.g., third party purchase of the borrower and potential or ongoing litigation). As of June 30, 2020 and December 31, 2019, respectively, the Company had 18 and 13 Watch List investments.

Investments through The International Investment Group L.L.C. (“IIG”) as the Sub-Advisor

The Company previously entered into a sub-advisory arrangement with IIG through the Company’s Advisor, however, the Company has determined not to make any further investments with IIG as the sub-advisor. IIG was the sub-advisor with respect to seven of the 18 investments that the Company has deemed Watch List investments. The Company is aware that IIG has substantially wound down its business. Further, the Company has learned that IIG Trade Opportunities Fund N.V. (“IIG TOF N.V.”), a fund that was advised by IIG from whom the Company purchased certain Participations as described below, has been placed into bankruptcy proceedings in Curacao involuntarily by certain of its equity investors. In addition, on December 11, 2019, a subsidiary of the Company filed an application in Amsterdam District Court to declare IIG Trade Opportunities Fund B.V. (“IIG TOF B.V.”), a subsidiary of IIG TOF N.V. that also was advised by IIG and from whom the Company purchased certain participations as described below, bankrupt. On January 21, 2020, the Amsterdam District Court declared IIG TOF B.V. bankrupt and appointed a Dutch law firm as liquidator. The SEC filed a civil complaint against IIG alleging that IIG engaged in a series of fraudulent activity, beginning in 2007, to cover up tens of millions of dollars in investment losses. The SEC alleged that the scheme involved, among other things, overvaluing assets under management and the fraudulent sale of troubled and fake trade finance securities, including the $6 million investment that the Company made in 2017 (which the Company now refers to as the IIG TOF B.V. receivable). A final consent judgment was entered against IIG in March 2020, ordering IIG to, among other things, pay $35.2 million to the SEC. In addition, in July 2020, the SEC filed a civil complaint, and the United States government filed criminal charges, against one of the founders of IIG, in each case alleging multiple claims, including fraud.

The Company determined not to engage in any new business with IIG due in part to IIG’s failure to provide the Company with complete and accurate information with respect to its investments for which IIG was the sub-advisor, the misapplication of $6 million that the Company had invested in 2017 and the failure to return the Company’s funds that were misapplied by IIG. The Company has not received any material updated information from IIG concerning the investments for which IIG was the sub-advisor since the first quarter of 2019, despite IIG being contractually obligated to provide the Company with updated information. Accordingly, the summaries of the investments for which IIG was the sub-advisor may not be up-to-date or complete. The Company has updated the summaries to the best of its knowledge and has requested updated and accurate reporting with respect to each investment from IIG, but IIG has not provided the information to the Company.

IIG was the sub-advisor for the following Watch List Investments as of June 30, 2020:

Portfolio Company	Principal balance		Fair value		Accrued interest		Valuation technique
Procesos Fabriles S.A.	$	881,800	$	10,504	$	-	Collateral based approach
Algodonera Avellaneda S.A.		6,000,000		3,398,558		778,500	Income approach
IIG TOF B.V. receivable		6,000,000		3,758,063		572,000	Income approach
Frigorifico Regional Industrias Alimentarias, S.A., Sucursal Uruguay		9,000,000		6,361,679		264,500	Income approach
Compania Argentina de Granos S.A.		12,500,000		9,679,636		330,191	Income approach
Sancor Cooperativas Unidas Ltda		6,000,000		4,719,383		604,633	Hybrid income/collateral based approach
Functional Products Trading S.A.		1,326,687		1,269,586		220,881	Income approach
Total	$	41,708,487	$	29,197,409	$	2,770,705

In October 2015, the Company purchased a Participation in a trade finance facility originated by IIG TOF N.V., a fund advised by the Company’s sub-advisor, IIG, with Procesos Fabriles S.A. (“Profasa”), as the borrower. Profasa is located in Guatemala. The Participation had a maturity date of March 31, 2016. As reported in previous filings, in 2016, due to the loss of a major customer, Profasa was unable to repay the facility on the stated maturity date.

As Profasa’s financial position deteriorated, in 2017, IIG determined that a restructuring of Profasa’s business was required and, as such, IIG started taking control of Profasa’s operations. Based on information provided by IIG in 2018, the Company’s existing Participation in this trade finance facility is near the final stages of being restructured to a Participation in a term loan. The Company is currently in discussions with IIG regarding a potential assignment of the Company’s portion of the underlying trade finance facility.

As of the date of this filing, completion of restructuring is unlikely, and, as such, the Company has valued this investment utilizing the collateral based approach, in accordance with its valuation policy. The fair value reflects a significant discount based upon the Company’s belief that liquidation of collateral will ultimately be required, complicated by the bankruptcy proceedings in Curacao described above. The Company placed this position on non-accrual as of July 1, 2017 and interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2020 amounted to $25,966 and $53,495, respectively. Interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2019 amounted to $27,529 and $54,756, respectively.

In March 2017, the Company purchased a Participation in a trade finance facility originated by IIG TOF B.V., with Algodonera Avellaneda S.A. (“Algodonera”) as the borrower, and a corporate guarantee by Vicentin S.A.I.C. (“Vicentin”), an Argentine-based company that, through its subsidiaries, operates as an agro industrial company that manufactures and exports cereals and oilseeds, cotton textiles, biodiesel, concentrated grape juice, agrichemicals, feed lots and wines.

The Company purchased the Participation from IIG for $6,000,000. The loan agreement states that Vicentin has guaranteed the payments to be made by Algodonera under the facility. Algodonera is an Argentinian vertically integrated cotton business. IIG informed the Company that in June 2017, IIG called a technical default on Algodonera under the facility due to nonpayment of interest and on Vicentin under the payment guarantee due to the breach of informational covenants. Thereafter, IIG made a filing against Vicentin and Algodonera in the commercial court in Buenos Aires, Argentina on July 4, 2017. The commercial court has jurisdiction over commercial claims and disputes of this type. After IIG filed its claims in the commercial court, the court ruled that IIG’s claims were valid and enjoined Vicentin’s cash accounts to allow for recovery by IIG. Once sufficient cash had been secured, the court allowed Vicentin to replace the enjoined cash accounts with a payment guarantee from Zurich Insurance Group with a 100% LTV, including accrued interest. Thereafter, the commercial court issued its final judgment, ordering Algodonera and Vicentin to pay $22.4 million, plus interest, to IIG, which includes the amount owed pursuant to the trade finance facility described above in which the Company purchased the Participation. Shortly thereafter, the criminal court in Santa Fe, Argentina issued a letter to the commercial court in Buenos Aires, Argentina ordering the suspension of the commercial court proceedings, but the commercial court rejected the suspension. Algodonera and Vicentin appealed the commercial court’s rejection of the suspension and submitted an additional letter from the criminal court providing the reasons for the criminal court’s suspension request, which included allegations of fraud by IIG. The commercial court rejected the suspension a second time and Algodonera and Vicentin appealed to the court of appeals. In March 2019, the court of appeals ruled in favor of the criminal court and countermanded the commercial court’s rejection of the suspension, with proceedings set to continue in the criminal court.

The Company learned on July 31, 2018 that IIG had failed to disclose to the Company that the Algodonera trade finance facility was subject to a subrogation agreement, which potentially would permit Algodonera to transfer all or a portion of its IIG debt outstanding to two other companies (specifically, Nacadie (defined below) and FRIAR (defined below)). The Company also learned on July 31, 2018 that the court proceedings involving IIG, Algodonera and Vicentin also included a legal dispute over the ability of Algodonera to enforce its rights under the subrogation agreement, as IIG argued that Algodonera’s default under its trade finance facility with IIG prevents Algodonera from being eligible to transfer its debt under its facility with IIG to Nacadie and FRIAR under the subrogation agreement. IIG had not disclosed this additional dispute and subrogation agreement to the Company.

The Company was informed by IIG’s legal counsel that the commercial court proceedings have been terminated due to the parties having reached a settlement. The Company also was told by IIG’s legal counsel that the settlement proceeds have been placed in an escrow account, however, the Company has not received a copy of the settlement agreement, does not know the amount received in the settlement, and does not know when or if it will receive any of the settlement proceeds. Accordingly, the Company does not know with certainty any amount that it may receive from the settlement.

Given that a settlement has been reached, the Company has applied a discount to the fair value to account for the inherent uncertainty regarding the amounts that may be recoverable by the Company from the settlement. Taking the factors described above into consideration, the Company believes, that as of June 30, 2020, the most appropriate valuation method is the income approach. The Company placed this investment on non-accrual status effective January 1, 2019 and interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2020 amounted to $136,500 and $273,000, respectively. Interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2019 amounted to $136,500 and $271,500, respectively.

In March 2017, the Company purchased a Participation in a trade finance facility originated by IIG TOF B.V., with Nacadie Commercial S.A. (“Nacadie”) as the borrower. The Company purchased the Participation in March 2017 for $6,000,000. Loan documents provided to the Company by IIG indicated that Vicentin is guarantor of the payments to be made by Nacadie under the facility. Nacadie is an Uruguay-based company focused on trading of the “soy bean complex” (soybeans, soybean meals, and oils) originating from Argentina, Paraguay and Uruguay. The Company received three interest payments under this Participation in March 2017 and has not received any other payments of principal or interest. Given that the loan documents state that Vicentin had guaranteed the payments due under both the Algodonera and Nacadie trade finance facilities, the Company erroneously believed that IIG had made filings in the commercial court in Buenos Aires, Argentina related to the Nacadie trade finance facility, similar to the filings IIG made with respect to the Algodonera facility. In July 2018, IIG informed the Company that the Nacadie trade finance facility was not included in its commercial court filings referenced above under “—Algodonera Avellaneda S.A.” IIG also informed the Company that it had not called a default on Nacadie for nonpayment under the facility. Given this new information, in order to re-confirm the details of its Participation in the Nacadie trade finance facility and the status of the facility, the Company requested original versions of all documents related to its Participation in the facility, including original versions of the underlying facility agreements and bank statements showing the Company’s investment in the facility. The Company had previously been provided by IIG with copies of documents related to its Participation and the underlying facility. During the third quarter of 2018, IIG informed the Company that although it had reviewed its books and records, it could not locate all of the original documents requested by the Company. In connection with its review of this investment during the third quarter of 2018, IIG informed the Company that IIG had misapplied the funds the Company had transmitted at the time the Company made this investment. As a result, IIG offered to refund the Company’s investment amount, including all accrued interest. However, IIG did not repay the Company for this Participation. Further, as noted above, the SEC claimed that IIG had engaged in a fraudulent scheme that included issuing a Participation in a fake Nacadie facility to the Company, in exchange for the Company's $6 million investment.

Given that this investment is no longer classified as a Participation in a trade finance facility, but rather as a receivable from IIG TOF B.V and taking the factors described above into consideration, the Company believes, that as of June 30, 2020, the most appropriate valuation method is the income approach. Although a senior executive at IIG agreed in conversations with the Company’s senior management to repay the Company for this investment in an amount equal to the outstanding principal and accrued interest (calculated in accordance with the terms of the Nacadie Participation in which the Company originally invested), the Company has not received a written agreement from IIG to this effect. As noted above, IIG TOF B.V. has been declared bankrupt in the Netherlands, and the Company is seeking to recover amounts to which it is entitled through the bankruptcy proceedings. The Company has applied a discount to the fair value based on the uncertainty created by the risk that IIG will not honor its agreement to repay the Company, which risk is enhanced by the fact that IIG has substantially wound down its business, and has an outstanding judgment against it in the amount of $35.2 million, as well as the uncertainty of the ultimate resolution of the Company’s attempt to recover amounts to which it is entitled through the bankruptcy proceedings in the Netherlands. The Company placed this receivable on non-accrual status, effective July 1, 2018 and interest not recorded relative to the original terms of this investment amounted to approximately $132,708 and $265,416 for the three and six months ended June 30, 2020, respectively. Interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2019 amounted to $132,708 and $263,958, respectively.

Between June 2016 and July 2016, the Company purchased two Participations in a trade finance facility originated by IIG TOF B.V., with Frigorifico Regional Industrias Alimentarias, S.A., Sucursal Uruguay (“FRIAR”), an Argentine company that produces, processes and exports beef, as the borrower. In June 2017, IIG called a technical event of default due to non-payment by FRIAR. In an effort to seek repayment from FRIAR, IIG filed the promissory notes for FRIAR in the commercial court in Buenos Aires, Argentina. The commercial court has jurisdiction over commercial claims and disputes of this type. During January 2018 the court granted IIG’s motion to freeze FRIAR’s accounts. At that time, IIG informed the Company that it was also in the process of securing additional collateral to cover the full balance outstanding, including accrued interest and penalties. In August 2018, the Company confirmed that FRIAR continues to operate and is a going concern.

As noted above, the Company learned on July 31, 2018 that IIG had failed to disclose to the Company that the Algodonera trade finance facility was subject to a subrogation agreement, which potentially would permit Algodonera to transfer all or a portion of its IIG debt outstanding to FRIAR and Nacadie. Also as described above, the Company learned on July 31, 2018 that IIG and Algodonera were in a legal dispute over the ability of Algodonera to enforce its rights under the subrogation agreement, as IIG has argued that Algodonera’s default under its trade finance facility with IIG prevents Algodonera from being eligible to transfer its debt under its facility with IIG to FRIAR and Nacadie under the subrogation agreement. Additionally, on July 31, 2018, the Company learned new information with regard to a put option that could potentially allow FRIAR to settle its outstanding debt to IIG with shares of FRIAR. In addition to settling FRIAR’s debt to IIG, the put option could potentially permit FRIAR to subrogate Algodonera’s and Nacadie’s debt to IIG. As with the subrogation agreement discussed above, the Company has learned that IIG disputed the enforceability of the put option in court. The criminal court in Santa Fe, Argentina issued a letter to the commercial court in Buenos Aires, Argentina ordering the suspension of the commercial court proceedings, but the commercial court rejected the suspension. FRIAR appealed the commercial court’s rejection of the suspension and submitted an additional letter from the criminal court providing the reasons for the criminal court’s suspension request, which include allegations of fraud by IIG. In April 2019, the court of appeals ruled in favor of the criminal court and countermanded the commercial court’s rejection of the suspension, with proceedings set to continue in the criminal court.

Although IIG expressed to the Company in the third quarter of 2018 its belief that it will prevail in the court proceedings, a settlement has been reached among the parties as described above under “Algonodera Avellaneda S.A.”; therefore, the Company has applied a discount to the fair value to account for the inherent uncertainty regarding the amount that may be recoverable by the Company from the settlement. The Company determined that the most appropriate method to calculate the fair value of this investment as of June 30, 2020 is the income approach. The Company placed the Participation on non-accrual status effective January 1, 2018 and interest not recorded relative to the original terms of this Participation for the three and six months ended June 30, 2020 amounted to $261,625 and $523,250, respectively. Interest not recorded relative to the original terms of this Participation for the three and six months ended June 30, 2019 amounted to $261,625 and $520,375, respectively.

Between October 2016 and February 2017, the Company purchased two Participations in a trade finance facility originated by IIG TOF B.V., with Compania Argentina de Granos (“CAGSA”), as borrower. The Company purchased the initial Participation in October 2016 for $10,000,000 and subsequently increased the Participation by another $2,500,000 in February 2017. This facility is collateralized by two export contracts. CAGSA, an Argentine company, is mainly engaged in the trading of grain and oilseed and the distribution and processing of food ingredients. Due to unfavorable weather conditions, CAGSA was unable to make delivery of toasted soybean meal under the terms of its export contracts. As a result, it failed to pay IIG its outstanding principal due on June 30, 2018.

IIG previously informed the Company that it had been in active discussions with other CAGSA lenders and had sent warning letters to CAGSA in order to protect its rights under the credit facility. Additionally, IIG previously informed the Company that IIG is a member of the creditors committee, which would determine all financial and restructuring options of CAGSA, which may include additional equity infusions by the existing shareholders. In February 2019, CAGSA disclosed that it had reached a preliminary settlement with its creditors. As noted above, IIG has substantially wound down its business, which could put the finalization of a settlement at risk, if the settlement has not already been finalized. As of the date of this report, the Company does not know if the preliminary settlement has been finalized and details of the terms of the preliminary settlement were not available.

With the announcement that CAGSA had reached a preliminary settlement with its creditors, as of March 31, 2019, the Company determined the most appropriate valuation approach for this investment to be the income approach. The Company has estimated the fair value of the principal amount of this investment as of June 30, 2020 based on the income approach, discounted to reflect the uncertainty related to CAGSA’s potential restructuring (including the risk that the restructuring may not be completed, given that IIG has substantially wound down its business) and the ultimate resolution of the Company’s attempt to recover amounts to which it is entitled through the bankruptcy proceedings in the Netherlands. In prior periods, the Company had placed CAGSA on non-accrual status. However, based on actions taken by the liquidator (the "TOF B.V. Liquidator") in the IIG TOF B.V. bankruptcy proceedings and information received from the TOF B.V. Liquidator during the three months ended June 30, 2020, the Company has determined that there is a reasonable likelihood that the portion of the facility underlying its CAGSA Participations will be assigned to the Company in the near future. It is the Company's understanding that CAGSA continues to operate as a going concern and has made substantial progress in its restructuring. Given these developments, the Company believes CAGSA should no longer be placed on non-accrual status and therefore there was no interest that was not recorded relative to the original terms of these Participations for the three months ended June 30, 2020. Interest not recorded relative to the original terms of this investment amounted to approximately $330,191 for the six months ended June 30, 2020. Interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2019 amounted to $330,191 and $656,754, respectively.

In April 2016 the Company purchased two Participations in a trade finance facility originated by IIG TOF B.V., with Sancor Cooperativas Unidas Limitada (“Sancor”), an Argentine company that distributes dairy products, as the borrower. Sancor has been in ongoing negotiations to reorganize itself, including with multiple potential buyers. IIG had worked with Sancor to restructure the existing loan and extended the maturity to July 29, 2019, with an annual renewal option. Since February 2019, Sancor has announced the sale of certain of its assets, which allowed it to make some payments to creditors and maintain operations, but the Company has not received any payment as a result of those asset sales. It is the Company’s understanding that Sancor is engaged in ongoing negotiations with its lenders regarding a debt restructuring. Due to the uncertainty related to IIG’s liquidation process and having substantially wound down its business, the Company believes the most appropriate valuation method continues to be a hybrid of the income approach and the collateral based approach as of June 30, 2020, based upon the value of the Company’s pledged collateral, discounted for the uncertainty around the expected timing and value of a potential sale and the uncertainty regarding ultimate resolution of the Company's attempt to recover amounts to which it is entitled through the bankruptcy proceedings in the Netherlands. For the three months ended March 31, 2020, the Company had placed Sancor on non-accrual status. However, based on actions taken by the TOF B.V. Liquidator in the IIG TOF B.V. bankruptcy proceedings and information received from the TOF B.V. Liquidator during the three months ended June 30, 2020, the Company has determined that there is a reasonable likelihood that the portion of the facility underlying its Sancor Participations will be assigned to the Company in the near future. It is the Company's understanding that Sancor continues to operate as a going concern and has made substantial progress in its restructuring. Given these developments, the Company believes Sancor should no longer be placed on non-accrual status and therefore, there was no interest that was not recorded relative to the original terms of this investment for the three months ended June 30, 2020. Interest not recorded relative to the original terms of this investment amounted to approximately $161,829 for the six months ended June 30, 2020 and none for the three and six months ended June 30, 2019.

Between June and September 2016, the Company purchased two Participations in a trade finance facility originated by IIG TOF N.V., with Functional Products Trading S.A. (“Functional”), a Chilean company that exports chia seeds to United States and European off-takers. While the original maturity date of this Participation was December 11, 2016, the maturity was extended to March 4, 2018. In 2017, Functional experienced operational losses due to volatile prices for raw chia seeds and its byproducts, with sales declining by 57% from 2016. As a result, Functional was unable to make the principal payment as planned and developed a full restructuring plan (selling an office building and entering into a lease back agreement) with its current lenders, including IIG, to provide more cash flow flexibility, become current on all interest payments and improve its capital structure, in order to support Functional’s growth initiatives.

IIG informed the Company in a prior period that it was working with Functional on restructuring the facility, but it is uncertain when or if this will happen given the bankruptcy proceedings against IIG TOF N.V. in Curacao and given that IIG has substantially wound down its business. As of June 30, 2020, the Company has estimated the fair value based on the income approach, discounted to present value using an appropriate yield to maturity, assuming the facility is restructured in the manner in which IIG previously informed the Company it expected the loan to be restructured. The appropriate yield to maturity increased to reflect uncertainty around the timing and completion of the restructuring, given the bankruptcy proceeding and IIG having substantially wound down its business. The Company placed Functional on non-accrual status, effective July 1, 2019 and interest not recorded relative to the original terms of this investment amounted to approximately $36,554 and $73,108, respectively for the three and six months ended June 30, 2020 and none for the three and six months ended June 30, 2019.

As of June 30, 2020, the Company’s investment in Usivale Industria E Comercio, Ltda. (“Usivale”), a sugar processing company located in Brazil, is comprised of two senior secured term loans for an aggregate loan amount of $2,851,296 and total accrued interest of $555,359. As reported in previous filings, Usivale exited judicial recovery on October 7, 2016 and resumed normal operations. Subsequently, the Company began receiving principal and interest payments from Usivale as scheduled. During an on-site visit with Usivale’s management in September 2017, Usivale indicated its intention to pay the 2017 principal and interest payment on time and in full, assuming relatively steady sugar prices. Post-site visit, sugar prices again compressed significantly, which caused added pressure on the cash flow of the business. Sugar price pressure continued through 2018. The 2017 annual interest payment was received in full and the 2018 annual interest payment was received in March 2019, though principal payment was not made on schedule. The 2019 annual interest payment was not received as of June 30, 2020. The Company is currently working with Usivale’s management to optimize their financial performance in response to volatile sugar prices to better facilitate principal repayment, including engaging industry and financial consultants to that effect.

As of June 30, 2020, the Company has estimated the fair value of the principal amount of the Usivale loans at $2,577,164, which is based on the income approach, accounting for expected principal and interest payments discounted by the loan’s yield to maturity, which includes uncertainty related to continued volatility in sugar prices.

In January 2015, the Company purchased a $1,250,000 Participation in a trade finance facility originated by Barak Fund SPC Ltd., a fund advised by the Company’s sub-advisor, Barak Fund Management Ltd. (“Barak”), with Applewood Trading 199 Pty, Ltd. (“Cape Nut”), as the borrower. Cape Nut is located in Cape Town, South Africa. As of June 30, 2020, the total balance outstanding under the Participation amounts to $785,806. Cape Nut’s trade finance facility has a stated maturity date of May 22, 2015, which Barak agreed to extend in October 2014 and the Company subsequently agreed to an extension of the maturity date for its Participation. The Company and Barak are working with Cape Nut to establish an appropriate repayment schedule. Cape Nut made partial principal payments during 2015, 2016 and 2017. Accordingly, the Company placed this Participation on non-accrual status effective February 1, 2016 and interest not recorded relative to the original terms of this Participation amounted to approximately $34,761 and $69,522, respectively, for the three and six months ended June 30, 2020. Interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2019 amounted to $34,761 and $69,140, respectively.

As reported in previous filings, due to Cape Nut’s cash flow difficulties and operating losses, in 2016, the Company’s sub-advisor, Barak, facilitated a strategic sale of Cape Nut, which closed in June 2016, resulting in Barak owning 50% of Cape Nut. Based on the information available to the Company and according to its valuation policies, the Company has estimated the fair value of the principal amount of its investment in Cape Nut to be $497,462 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty in Cape Nut’s financial performance.

Between July 2016 and April 2017, the Company purchased nine Participations totaling $9,000,000 in a trade finance facility originated by Scipion Active Trading Fund, a fund advised by the Company’s sub-advisor, Scipion Capital, Ltd. (“Scipion”), with Mac Z Group SARL (“Mac Z”), a scrap metal recycler, as the borrower. Mac Z is located in Morocco. As of June 30, 2020, the outstanding principal balance on this Participation was $7,349,626 with no accrued interest. The primary collateral securing this Participation was 1,970 tons of copper scrap. In late October 2017, Scipion’s designated collateral manager for Mac Z notified Scipion of an investigation into a 1,820 ton, approximately $13.3 million, shortage of copper scrap inventory physically held in the warehouse. The copper scrap is pledged to the Company and serves as the primary collateral for this Participation. The missing inventory led the Company to place Mac Z on the Watch List and on non-accrual status.

In addition to conducting its investigation, Scipion issued an event of default and has taken steps to enforce the corporate guarantee, personal guarantee and relevant pledges made for the benefit of Scipion with respect to the facility, which include two insurance policies. Scipion has placed a blocking notice on all of Mac Z’s bank accounts and has requested a freeze order from the Moroccan local courts on the physical assets of the company. Since the initial discovery and actions, Mac Z sold remaining inventory and the Company was paid interest of approximately $330,000 in January 2018 and $292,000 during the first week April 2018. Mortgages against two unencumbered parcels of land ($5.9 million estimated value) are in the process of being finalized in favor of Scipion under this facility. A judgment was received on December 18, 2017, in English court ordering the borrower and the corporate guarantor to make payment. In parallel to its recovery plan with respect to Mac Z, Scipion informed the Company that it has received a judgment in its favor with respect to its claim against the collateral manager under its professional indemnity insurance policy, which covers up to $40 million in losses.

Based on these developments, the Company believes there is sufficient collateral available to cover both the outstanding principal balance and the accrued interest. In prior periods, the Company had placed this Participation on non-accrual status, accordingly, interest not recorded relative to the original terms of this Participation for the three and six months ended June 30, 2020 amounted to $0 and $204,361, respectively. Interest not recorded relative to the original terms of this participation for the three and six months ended June 30, 2019 amounted to $204,360 and $406,475, respectively. The Company believes, that as of June 30, 2020, the most appropriate valuation method is the income approach and the Company has determined the fair value of the principal amount of this investment to be $7,530,616, accounting for existing inventory and the current claim against the collateral manager’s insurance, discounted for the time expected for collection and uncertainty related to the final steps in the judicial process which are through a consequential hearing to determine the costs and interest owed from the insurers..

In July 2017, the Company purchased one Participation in a trade finance facility originated by Scipion Active Trading Fund, a fund advised by the Company’s sub-advisor, Scipion, with Global Pharma Intelligence Sarl (“GPI”), an international pharmaceutical materials supplier with primary operations in Dubai, as the borrower. As of June 30, 2020, the outstanding principal balance on this Participation was $648,430 and interest had been paid in full through August 10, 2018. The accrued interest balance as of June 30, 2020 is $134,215. Repayment on the Participation has been slower than originally anticipated due to operational delays within the underlying trade. GPI had been actively working with its buyer to resolve the operational delays, but the buyer has since experienced financial challenges making payment of the outstanding invoice unlikely. As such, focus has primarily shifted to pursuing a claim under GPI’s credit insurance policy which covers full outstanding principal and interest of the loan. Recovery through the insurance policy is expected to take place in the coming quarters. Due to the reliance on the cash flow from the insurance policy, the Company believes the most appropriate valuation method is the income approach and has determined the fair value of the principal amount of this investment to be $648,430, as of June 30, 2020, based upon the value of the Company’s pledged collateral and insurance policy in place, discounted for the uncertainty around the expected timing of repayment. The Company placed GPI on non-accrual status effective October 1, 2019 and interest not recorded relative to the original terms of this investment amounted to approximately $23,993 and $53,637, respectively for the three and six months ended June 30, 2020 and none for the three and six months ended June 30, 2019.

Between March 2018 and June 2018, the Company purchased three Participations totaling $15,986,369 in a trade finance facility originated by the Company’s sub-advisor, AMC Trade Finance Limited (“AMC”), with Producam SA (“Producam”), a Cameroon based cocoa and coffee exporter, as the borrower. As of June 30, 2020, the aggregate outstanding principal balance of these Participations was $10,413,683 and accrued interest amounted to $3,267,506. Repayment on these Participations has been slower than originally anticipated due to short run cash flow pressure on Producam. AMC informed the Company that the borrower misapplied the proceeds from the sale of certain of its inventory to finance its own cash flow needs rather than repay the facility. AMC then began working with the borrower to restructure the facility and the restructuring process is expected to be finalized in the coming quarters. Based on the information available to the Company and according to its valuation policies, the Company has estimated the fair value of the principal amount of its investment in Producam to be $9,192,637 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty in Producam’s financial performance.

Between November 2018 and May 2019, the Company purchased three Participations totaling $9,500,000 in a trade finance facility originated by the Company’s sub-advisor, TransAsia Private Capital Ltd. (“TransAsia”), with Conplex International Ltd. (“Conplex”), a Hong Kong based international open market distributor and wholesaler of electronics products, as the borrower. As of June 30, 2020, the aggregate outstanding principal balance of these Participations was $9,500,000 and accrued interest amounted to $1,094,388. Repayment on these positions has been slower than originally anticipated due to short term cash flow pressure on Conplex. TransAsia informed the Company that the borrower had a large portion of receivables overdue from a large off-taker. TransAsia then began working with the borrower to restructure the facility and the restructuring process is expected to be finalized in the coming quarters. Based on the information available to the Company and according to its valuation policies, the Company has estimated the fair value of the principal amount of its investment in Conplex to be $7,686,402 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty in Conplex’s financial performance.

In November 2019, the Company made an investment in Triton Metallics Pte. Ltd. (“Triton”) totaling $16,456,270 in a trade finance facility originated by the Company’s sub-advisor, TransAsia. Triton is a Singapore based diversified commodities trading company. As of June 30, 2020 the aggregate outstanding principal balance of the investment was $16,456,270 and accrued interest amounted to $1,261,647. TransAsia informed the Company in early 2020 that due to the COVID-19 pandemic there have been constrained trading volumes. As a result, TransAsia then began working with the borrower to restructure the facility and the restructuring process is expected to be finalized in the coming quarters. Based on the information available to the Company and according to its valuation policies, the Company has estimated the fair value of the principal amount of its investment in Triton to be $14,793,124 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty in Triton’s financial performance.

Between July 2015 and December 2017, the Company purchased six Participations totaling $15,300,000 in a term loan facility originated by the Company’s sub-advisor, Helios Investment Partners, LLP (“Helios”), with Helios Maritime I (“Helios Maritime”), a company setup for the purposes of on-lending to Starz Investment Company, Ltd., a Nigerian shipping and logistics company for the purpose of acquiring a handling tug vessel. As of June 30, 2020, the aggregate outstanding principal balance of these Participations was $12,762,670 and total accrued interest amounted to $4,516,047, which included $2,549,918 of interest which is deferred and payable at maturity of the loan. Repayment on these positions has been slower than originally anticipated due to delays in acquiring a long-term contract, which has been further prolonged based on challenges presented by the COVID-19 pandemic and the recent decline in oil prices. Helios is actively working with the borrower to restructure the facility which is expected to be finalized in the coming quarters. Based on the information available to the Company and according to its valuation policies, the Company has estimated the fair value of the principal amount of its investment in Helios Maritime to be $10,515,861 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty in Helios Maritime’s financial performance.

In May 2016, the Company purchased a $17,000,000 Participation in a term loan facility originated by the Company’s sub-advisor, Helios, with TRG Cape Verde Holdings Ltd (“TRG Cape Verde”), an owner and developer of resorts based in Cabo Verde. As of June 30, 2020, the aggregate outstanding principal balance of this Participation was $13,156,933 and accrued interest amounted to $1,230,971. Repayment on this position has been slower than originally anticipated due to regulatory changes in TRG Cape Verde’s fundraising model, along with further challenges associated with little to no occupancy at its resort properties due to the ongoing COVID-19 pandemic. Helios is actively working with the borrower to restructure the facility which is expected to be finalized in the coming quarters. Based on the information available to the Company and according to its valuation policies, the Company has estimated the fair value of the principal amount of its investment in TRG Cape Verde to be $11,359,874 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty in TRG Cape Verde’s financial performance.

In January 2017, the Company purchased a $15,000,000 Participation in a term loan facility originated by the Company’s sub-advisor, Helios, with Trustco Group Holdings Ltd (“Trustco”), a Namibia based group operating a diversified set of business lines including property development, financial services (insurance, retail banking), education, and diamond mining. As of June 30, 2020, the aggregate outstanding principal balance of this Participation was $17,176,724 and accrued interest amounted to$1,369,374. Repayment on this position has been slower than originally anticipated, largely due to a slowdown in the local real estate market. Helios has been actively working with the borrower to restructure the facility. As this has proved challenging, Helios issued a notice of default and acceleration notice to Trustco along with launching initial legal proceedings. A demand has also been made against Elisenheim as guarantor in respect of Trustco’s obligations to Helios. In addition to recourse against Trustco, Helios has the benefit of a security interest in property owned by the guarantor. Based on the information available to the Company and according to its valuation policies, the Company has estimated the fair value of the principal amount of its investment in Trustco to be $14,873,425 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty in legal proceedings and Trustco’s financial performance.

In December 6, 2018, the Company invested in an $8.1 million senior secured term loan with Itelecom Holding Chile SpA (“Itelecom”) as the borrower. Itelecom used the funds to finance the acquisition and installation of LED luminaries for projects with three municipalities in Chile: (i) Municipality of Las Condes (“Las Condes”), (ii) Agencia Chilena de Eficiencia Energetica – i.e. AChEE – on behalf of the Municipality of Calbuco ("Calbuco”), and (iii) the Gobierno Regional de la Region de Tarapaca for the Municipality of Iquique (“Iquique”). As of June 30, 2020, the aggregate outstanding principal balance of the investment was $1,408,638 and accrued interest amounted to $37,716.

As of the end of June 2019, Itelecom had completed 100% of the agreed services for the municipalities for all three projects. While the contracts with Iquique and Calbuco were fully settled, the contract with Las Condes will be repaid by the municipality over a pre-determined schedule, with the final payment in June 2021.

In May 2020, the Company’s sub-advisor for this investment, Alsis Funds, S.C., and local legal counsel notified the Company that Itelecom’s chief executive officer, Marcelo Lefort, had been arrested for alleged bribery and money laundering related to his interactions with representatives of certain municipalities, including Iquique and the Municipality of Chillán. Within several days after the Company learned of these allegations from Alsis and local counsel, Itelecom confirmed that Itelecom’s bank accounts, including the collection accounts with Banco de Chile for the debt service of the Company’s loan, had been frozen by the court presiding over the charges against Itelecom’s chief executive officer. Itelecom was able to unfreeze some bank accounts to fund its basic maintenance and operations and to pay its employees. The Company’s collection accounts, including a reserve account of US $270,000, remain frozen. The Company is exploring legal remedies to secure and segregate the debt service accounts from Itelecom through Las Condes.

The Company has estimated the fair value of the principal amount of the Itelecom loan to be $1,408,638 as of June 30, 2020 based on the income approach, discounted to present value using an appropriate yield to maturity, accounting for uncertainty resulting from the legal proceedings described above.

The industry composition of the Company’s portfolio, at fair value as of June 30, 2020 and December 31, 2019, was as follows:

	As of June 30, 2020					As of December 31, 2019
	Fair		Percentage			Fair		Percentage
Industry	Value		of Total			Value		of Total
Agricultural Products	$	12,256,800		3.7	%	$	12,417,122		3.6	%
Boatbuilding and Repairing		5,848,683		1.8	%		5,695,069		1.7	%
Chemicals and Allied Products		15,000,000		4.5	%		15,000,000		4.4	%
Chocolate and Cocoa Products		9,192,637		2.8	%		9,687,887		2.8	%
Coal and Other Minerals and Ores		31,959,683		9.7	%		32,348,090		9.5	%
Commercial Fishing		35,838		0.0	%		35,838		0.0	%
Communications Equipment		—		—			100,000		0.0	%
Consumer Products		9,318,469		2.8	%		9,318,469		2.7	%
Corrugated and solid fiber boxes		13,351,735		4.0	%		—		—
Department Stores		8,786,977		2.7	%		8,638,109		2.5	%
Drugs, Proprietaries, and Sundries		648,430		0.2	%		803,254		0.2	%
Electric Services		1,408,638		0.4	%		16,383,269		4.8	%
Farm Products		9,667,785		2.9	%		9,644,313		2.8	%
Fats and Oils		3,398,558		1.0	%		3,398,558		1.0	%
Financial services		3,758,063		1.1	%		3,758,063		1.1	%
Freight Transportation Arrangement		13,779,518		4.2	%		13,505,035		4.0	%
Food Products		2,242,237		0.7	%		2,724,804		0.8	%
Groceries and Related Products		457,418		0.1	%		468,756		0.1	%
Hotels and Motels		11,359,874		3.4	%		12,846,584		3.8	%
Land Subdividers and Developers		14,873,425		4.5	%		16,781,000		4.9	%
Logging		5,797,622		1.8	%		5,612,436		1.6	%
Meat, Poultry & Fish		6,361,679		1.9	%		6,240,961		1.8	%
Motor Vehicle Parts and Accessories		8,974,373		2.7	%		8,731,936		2.6	%
Personal Credit Institutions		2,975,691		0.9	%		3,603,592		1.1	%
Petroleum and Petroleum Products		14,592,683		4.4	%		15,500,000		4.6	%
Programming and Data Processing		17,967,951		5.4	%		17,740,330		5.2	%
Refuse Systems		27,738,539		8.4	%		25,766,063		7.6	%
Secondary Nonferrous Metals		17,530,616		5.3	%		17,530,616		5.2	%
Short-Term Business Credit		4,740,000		1.4	%		4,740,000		1.4	%
Soap, Detergents, and Cleaning		2,620,083		0.8	%		2,894,698		0.9	%
Telephone and Telegraph Apparatus		7,686,402		2.3	%		8,840,048		2.6	%
Telephone Communications		35,747,233		10.8	%		36,794,973		10.8	%
Water Transportation		10,515,860		3.2	%		12,748,503		3.7	%
Total	$	330,593,500		100.0	%	$	340,298,376		100.0	%

The table below shows the portfolio composition by geographic classification at fair value as of June 30, 2020 and December 31, 2019:

	As of June 30, 2020					As of December 31, 2019
	Fair		Percentage			Fair		Percentage
Country	Value		of Total			Value		of Total
Argentina	$	24,159,256		7.3	%	$	24,198,860		7.1	%
Botswana		4,740,000		1.4	%		4,740,000		1.4	%
Brazil		26,393,798		8.0	%		26,012,563		7.6	%
Cabo Verde		11,359,874		3.4	%		12,846,584		3.8	%
Cameroon		9,192,637		2.8	%		9,687,887		2.9	%
Chile		2,678,224		0.8	%		2,652,855		0.8	%
Colombia		23,456,424		7.1	%		23,479,065		6.9	%
Croatia		8,786,977		2.7	%		8,638,109		2.5	%
Ecuador		13,387,573		4.1	%		35,838		0.0	%
Ghana		14,592,683		4.4	%		30,500,000		9.0	%
Guatemala		10,504		0.0	%		10,504		0.0	%
Hong Kong		49,646,085		15.0	%		51,188,138		15.0	%
Jersey		15,266,500		4.6	%		16,919,500		5.0	%
Kenya		13,779,518		4.2	%		13,505,035		4.0	%
Malaysia		15,000,000		4.5	%		15,000,000		4.4	%
Mauritius		457,418		0.1	%		468,756		0.1	%
Mexico		27,738,539		8.4	%		25,766,063		7.6	%
Morocco		7,530,616		2.3	%		7,530,616		2.2	%
Namibia		14,873,425		4.5	%		16,781,000		4.9	%
Netherlands		8,974,373		2.7	%		8,731,936		2.6	%
New Zealand		5,797,622		1.8	%		5,612,436		1.7	%
Nigeria		12,030,084		3.6	%		14,262,726		4.2	%
Peru		4,599,086		1.4	%		4,599,086		1.4	%
Romania		1,744,775		0.5	%		2,034,188		0.6	%
South Africa		497,462		0.2	%		790,616		0.2	%
United Arab Emirates		648,430		0.2	%		803,254		0.2	%
Uganda		6,873,472		2.1	%		6,850,000		2.0	%
Zambia		2,620,083		0.8	%		2,894,698		0.9	%
N/A		3,758,062		1.1	%		3,758,063		1.1	%
Total	$	330,593,500		100.0	%	$	340,298,376		100.0	%

(1)	All of the Company’s investments in Argentina are Participations in trade finance facilities originated by IIG TOF B.V., a subsidiary of a fund advised by the Company’s sub-advisor, IIG. See Note 3 “Watch List Investments” for further information.