NOTE 4 –INVESTMENTS

The following table summarizes the composition of the Company's investments at fair value as of December 31, 2020 (successor basis):

Asset Type	Fair Value December 31, 2020
Publicly Traded Companies	$	7,631,403
Non Traded Companies		28,417,286
Non Traded Company (Fair Value Option)		2,214,310
LP Interests		423,473
LP Interests (Fair Value Option)		37,788,830
Investment Trust		33,990
Total	$	76,509,292

The following table summarizes the composition of the Company's investments at cost and fair value as of June 30, 2020 (predecessor basis):

	June 30, 2020
Asset Type	Cost		Fair Value
Publicly Traded Companies	$	8,454,348	$	7,244,654
Non Traded Companies		42,474,614		32,808,076
LP Interests		53,713,785		53,618,425
Investment Trust		49,901		33,990
Total	$	104,692,648	$	93,705,145

The following table presents fair value measurements of the Company's investments as of December 31, 2020, according to the fair value hierarchy that is described in our annual report on Form 10-K:

Asset Type	Total		Level I		Level II		Level III
Publicly Traded Companies	$	7,631,403	$	7,631,403	$	-	$	-
Non Traded Companies		30,631,596		-		-		30,631,596
LP Interests		38,212,303		-		-		38,212,303
Investment Trust		33,990		-		-		33,990
Total	$	76,509,292	$	7,631,403	$	-	$	68,877,889

The following table presents fair value measurements of the Company's investments as of June 30, 2020, according to the fair value hierarchy that is described in our annual report on Form 10-K:

Asset Type	Total		Level I		Level II		Level III
Publicly Traded Companies	$	7,244,654	$	7,244,654	$	-	$	-
Non Traded Companies		32,808,076		-		-		32,808,076
LP Interests		53,618,425		-		-		53,618,425
Investment Trust		33,990		-		-		33,990
Total	$	93,705,145	$	7,244,654	$	-	$	86,460,491

The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the six months ended December 31, 2020:


Balance at July 1, 2020	$	86,460,491
Purchases of investments		13,448,477
Transfers to Level I		(1,900,470	)
Consolidation of the Operating Partnership (Note 1)		(8,027,584	)
Proceeds from sales, net		(1,011,748	)
Return of capital		(11,486,835	)
Net realized gains		30,050
Net unrealized losses		(8,634,492	)
Ending balance at December 31, 2020	$	68,877,889

The transfers of $1,900,470 from Level III to Level I category during the six months ended December 31, 2020 resulted from one of the Company's investments converting from a non-traded REIT to publicly traded REIT. Transfers are assumed to have occurred at the beginning of the period.

For the six months ended December 31, 2020, changes in unrealized losses, net included in earnings relating to Level III investments still held at December 31, 2020 were $1,836,915.

Balance at July 1, 2019	$	101,094,142
Purchases of investments		24,287,915
Proceeds from sales, net		(3,510,705	)
Return of capital		(12,814,896	)
Net realized gains		782,541
Net unrealized losses		(497,239	)
Ending balance at December 31, 2019	$	109,341,758

For the six months ended December 31, 2019, changes in unrealized gains, net included in earnings relating to Level III investments still held at December 31, 2019 were $461,824.

The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at December 31, 2020:

Asset Type	Fair Value		Primary Valuation Techniques	Unobservable Inputs Used	Range			Wt. Average

Non Traded Companies	$	2,224,531	Direct Capitalization Method	Capitalization rate		6.5% - 7.4	%		7.3	%
				Liquidity discount		25.0% - 30.0	%		25.0	%
Non Traded Companies		65,867	Estimated Liquidation Value	Sponsor provided value
				Liquidity discount		6.0% - 9.0	%		1.8	%
Non Traded Companies		28,341,198	Market Activity	Secondary market industry publication Liquidity discount*		7.8	%

LP Interests		24,935,999	Direct Capitalization Method	Capitalization rate		3.5% - 7.0	%		5.2	%
				Liquidity discount		20.0% - 29.0	%		20.9	%
LP Interests		11,229,424	Discounted Cash Flow	Discount rate		9.0% - 20.0	%		12.7	%
				Discount term (months)		3.0
LP Interests		1,772,017	Estimated Liquidation Value	Sponsor provided value
				Underlying property sales contract
				Underlying property appraisal
				Liquidity discount		43.0	%
LP Interests		274,863	Market Activity	Underlying security sales contract
				Underlying assets book value
				Liquidity discount		75.0	%

Investment Trust		33,990	Market Activity	Underlying security sales contract

	$	68,877,889

* In the past years, the Company valued Level III investments primarily by reference to secondary market activities. However, due to the COVID-19 pandemic, secondary market activities significantly declined after March 2020. While the most active of these securities had transactions reported based on new COVID-19 occupancy and financial information, one of the Level III investments only had earlier reported transactions. Therefore, to determine the fair values of these non-traded securities as of December 31, 2020, management reviewed and evaluated multiple data sources as part of management’s Level III valuation process and applied significant subjective judgment about the effects of overall market declines during times of economic uncertainty to arrive at these valuations.

The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2020:

Asset Type	Fair Value		Primary Valuation Techniques	Unobservable Inputs Used	Range			Wt. Average

Non Traded Companies	$	541,858	Direct Capitalization Method	Capitalization rate		6.5% - 7.6	%		7.5	%
				Liquidity discount		32.0% - 35.0	%		32.1	%
Non Traded Companies		65,856	Estimated Liquidation Value	Sponsor provided value
				Liquidity discount		12.0% - 78.0	%		45.1	%
Non Traded Companies		32,200,362	Market Activity	Secondary market industry publication Liquidity discount *		7.5% - 12.5	%
									7.6	%
LP Interests		24,974,379	Direct Capitalization Method	Capitalization rate		3.4% - 6.8	%		5.2	%
				Liquidity discount		5.0% - 40.0	%		15.5	%
LP Interests		14,976,861	Discounted Cash Flow	Discount rate		9.0% - 20.0	%		11.6	%
				Discount term (months)		6.0 - 9.0			7.1
LP Interests		11,724,322	Estimated Liquidation Value	Sponsor provided value
				Underlying property sales contract
				Underlying property appraisal
				Liquidity discount		19.0% - 43.0	%		41.5	%
LP Interests		1,942,863	Market Activity	Underlying security sales contract
				Secondary market industry publication
				Contributed capital

Investment Trust		33,990	Market Activity	Underlying security sales contract

	$	86,460,491

* In the past years, the Company valued Level III investments primarily by reference to secondary market activities. However, due to the COVID-19 pandemic, secondary market activities significantly declined during the second quarter of 2020. While the most active of these securities had transactions reported based on new COVID-19 occupancy and financial information, two of the Level III investments only had earlier reported transactions. Therefore, to determine the fair values of these non-traded securities as of June 30, 2020, management reviewed and evaluated multiple data sources as part of management’s Level III valuation process and applied significant subjective judgment about the effects of overall market declines during times of economic turmoil to arrive at these valuations.

Impact of COVID-19 Pandemic

The COVID-19 pandemic has adversely impacted the fair value of our investments as of December 31, and June 30, 2020, and the values assigned as of this date may differ materially from the values that we may ultimately realize with respect to our investments. The impact of the COVID-19 pandemic may not yet be fully reflected in the valuation of our investments as our valuations, and particularly valuations of private investments and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information that is often from a time period earlier, generally two to three months, than the quarter for which we are reporting. Additionally, we may not have yet received information or certifications from our portfolio companies that indicate any or the full extent of declining performance or non-compliance with debt covenants, as applicable, as a result of the COVID-19 pandemic. As a result, our valuations at December 31, and June 30, 2020, may not show the complete or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. Accordingly, we may continue to incur additional net unrealized losses or may incur realized losses subsequent to December 31, 2020, which could have a material adverse effect on our business, financial condition and results of operations.

Summarized or Separate Audited Financial Statements for Equity Method Investments (Fair Value Option)

Our investments in securities are generally in small and mid-sized companies in a variety of industries. In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, we must determine which of our equity method investments measured at fair value under the Fair Value Option are considered “significant,” if any. Regulation S-X mandates the use of three different tests to determine if any of our investments are considered significant investments: the investment test, the asset test, and the income test. Rule 3-09 of Regulation S-X requires separate audited financial statements for any significant equity method investments in an annual report if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information in an annual report if any of the three tests exceeds 10%. For interim reporting, under SEC Rule 10-01(b)(1), the investment and income tests prescribed under Rule 3-09 should be applied to all of our equity method investments measured at fair value under the Fair Value Option and if either of the two tests exceed 20%, summarized income statement information of each equity method investee is required to be disclosed separately. The summarized income statement information is not required for any equity method investee that would not be required, pursuant to Rule 13a-13 or 15d-13, to file quarterly financial information with the SEC if it were a registrant.

As of December 31, 2020, none of our investments were considered a significant investment under Rule 10-01(b)(1).

In addition to the SEC rules, ASC 323-10-50-3(c) requires summarized financial statements of its equity method investments, including those reported under the fair value option, if they are material individually or in aggregate. The Company’s equity method investments accounted under the fair value option were material in aggregate as of December 31, 2020. The aggregated summarized financial information of the investees are as follows:

Total Assets	$	254,897,999
Total Liabilities	$	146,306,066
Total Equities	$	108,591,933
Total Revenues	$	22,819,759
Total Expenses	$	19,909,934
Total Net Income	$	2,909,825

Unconsolidated Significant Subsidiaries

In accordance with SEC Rules 3-09 and 4-08(g) of Regulation S-X, we must determine which of our investments in securities are considered “significant subsidiaries,” if any. Regulation S-X mandates the use of three different tests to determine if any of our controlled investments are significant subsidiaries: the investment test, the asset test, and the income test. Rule 3-09 of Regulation S-X requires separate audited financial statements for any unconsolidated majority-owned subsidiary in an annual report if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information in an annual report if any of the three tests exceeds 10%.

As of December 31, 2020, none of our investments was considered a significant subsidiary under both SEC rules. As of June 30, 2020, one of our investments, the Operating Partnership, was determined to be a significant subsidiary under the asset test as the Operating Partnership’s total assets exceeded 20% of the Company’s total assets as of June 30, 2020. Under the Rule 3-09, separate audited financial statements were required to be included in the Company’s annual report for the fiscal year ended June 30, 2021. However, as discussed in Note 1, in connection with the termination of the Company’s status as a BDC, the Operating Partnership was consolidated with the Company as of December 31, 2020. Therefore, separate audited financial statements of this partnership are no longer required in the Company’s annual report as of December 31, 2020.