INVESTMENTS

3 Months Ended

Sep. 30, 2021

NOTE 4 – INVESTMENTS

The following table summarizes the composition of the Company's equity method investments with fair value option election and other equity securities at fair value as of September 30, 2021 (successor basis):

Asset Type	Fair Value September 30, 2021
Publicly Traded Companies	$	300,800
Non Traded Companies		25,694,860
Non Traded Company (Equity method investment with fair value option election)		2,792,141
LP Interests		292,550
LP Interests (Equity method investment with fair value option election)		34,041,159
Investment Trust		39,776
Total	$	63,161,286

The following table summarizes the composition of the Company's investments at cost and fair value as of June 30, 2021 (successor basis):

Asset Type	Fair Value June 30, 2021
Publicly Traded Companies	$	169,200
Non Traded Companies		29,426,441
Non Traded Company (Equity method investment with fair value option election)		2,867,911
LP Interests		288,494
LP Interests (Equity method investment with fair value option election)		37,722,483
Investment Trust		34,714
Total	$	70,509,243

The Company’s above total investments at fair value are disclosed in two separate lines as investments and unconsolidated investments (non-securities) in the consolidated balance sheet as of September 30, 2021.

The following table presents fair value measurements of the Company's investments as of September 30, 2021, according to the fair value hierarchy that is described in our annual report on Form 10-K (successor basis):

Asset Type	Total		Level I		Level II		Level III
Publicly Traded Companies	$	300,800	$	300,800	$	-	$	-
Non Traded Companies		28,487,001		-		-		28,487,001
LP Interests		34,333,709		-		-		34,333,709
Investment Trust		39,776		-		-		39,776
Total	$	63,161,286	$	300,800	$	-	$	62,860,486

The following table presents fair value measurements of the Company's investments as of June 30, 2021, according to the fair value hierarchy that is described in our annual report on Form 10-K (successor basis):

Asset Type	Total		Level I		Level II		Level III
Publicly Traded Companies	$	169,200	$	169,200	$	-	$	-
Non Traded Companies		32,294,352		-		-		32,294,352
LP Interests		38,010,977		-		-		38,010,977
Investment Trust		34,714		-		-		34,714
Total	$	70,509,243	$	169,200	$	-	$	70,340,043

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 three months ended September 30, 2021 (successor basis):

Balance at July 1, 2021	$	70,340,043
Purchases of investments		108,063
Transfers to Level I		(229,621	)
Proceeds from sales, net		(7,114,606	)
Return of capital distributions		(3,931,141	)
Net realized gain		531,643
Net unrealized gains		3,156,105
Ending balance at September 30, 2021	$	62,860,486

The transfers of $229,621 from Level III to Level I category during the three months ended September 30, 2021 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 three months ended September 30, 2021, changes in unrealized gains, net included in earnings relating to Level III investments still held at September 30, 2021 were $3,507,240.

Balance at July 1, 2020	$	86,460,491
Purchases of investments		4,407,988
Transfers to Level I		(950,235	)
Proceeds from sales, net		(1,011,748	)
Return of capital		(4,284,031	)
Net realized gains		30,048
Net unrealized losses		(1,211,074	)
Ending balance at September 30, 2020	$	83,441,439

The transfers of $950,235 from Level III to Level I category during the three months ended September 30, 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 three months ended September 30, 2020, changes in unrealized losses, net included in earnings relating to Level III investments still held at September 30, 2020 were $1,870,083.

The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at September 30, 2021 (successor basis):

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

Non Traded Company	$	2,792,141	Direct Capitalization Method	Capitalization rate		7.9	%
				Liquidity discount		32.0	%
Non Traded Companies		22,930	Estimated Liquidation Value	Sponsor provided value
				Liquidity discount		4.5% - 66.0	%		55.4	%
				Bankruptcy filing
Non Traded Companies		25,671,930	Market Activity	Secondary market industry publication
LP Interests		27,649,276	Direct Capitalization Method	Capitalization rate		3.5% - 8.2	%		6.0	%
				Liquidity discount		12.0% - 33.0	%		13.8	%
LP Interests		5,000,000	Discounted Cash Flow	Discount rate		9.0	%
LP Interests		1,684,433	Estimated Liquidation Value	Sponsor provided value
				Appraisal
				Liquidity discount		48.7	%
				Discount rate		10.0	%
Investment Trust		39,776	Direct Capitalization Method	Capitalization rate		6.0	%
				Liquidity discount		33.0	%
	$	62,860,486

The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2021 (successor basis):

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

Non Traded Company	$	2,867,911	Direct Capitalization Method	Capitalization rate		7.9	%
				Liquidity discount		32.0	%
Non Traded Companies		66,337	Estimated Liquidation Value	Sponsor provided value
				Liquidity discount		2.0% - 67.0	%		53.6	%
				Bankruptcy filing
Non Traded Companies		29,360,104	Market Activity	Secondary market industry publication
				Underlying property sales contract
				Acquisition cost
LP Interests		19,717,495	Direct Capitalization Method	Capitalization rate		3.5% - 7.5	%		5.8	%
				Liquidity discount		20.0% - 33.0	%		20.9	%
LP Interests		11,448,000	Discounted Cash Flow	Discount rate		9.0% - 20.0	%		13.2	%
				Discount term (months)		24
LP Interests		6,845,482	Estimated Liquidation Value	Sponsor provided value
				Underlying property sales contract
				Liquidity discount		5.0% - 46.19	%		16.1	%
				Appraisal
Investment Trust		34,714	Direct Capitalization Method	Capitalization rate		6.0	%
				Liquidity discount		33.0	%
	$	70,340,043

Impact of COVID-19 Pandemic

The COVID-19 pandemic has adversely impacted the fair value of our investments as of September 30, and June 30, 2021, 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 September 30, 2021 and June 30, 2021, 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 September 30, 2021, 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.

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 September 30, 2021. The aggregated summarized financial information of the investees are as follows:

Total Assets	$	231,578,434
Total Liabilities	$	151,238,019
Total Equities	$	80,340,415
Total Revenues	$	16,310,863
Total Expenses	$	18,387,194
Total Net Loss	$	(2,076,330	)

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 September 30, 2021 and June 30, 2021, none of our investments in securities was considered a significant subsidiary under either SEC rules.