XML 36 R25.htm IDEA: XBRL DOCUMENT v3.21.2
INVESTMENTS (Tables)
 3 Months Ended
Sep. 30, 2021
INVESTMENTS [Abstract]  
Composition of Investments at Fair Value
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
  
Composition of Investments at Cost and Fair value
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
  
Fair Value Measurements of Investments
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
  
Reconciliation of the Beginning and Ending Balances for Investments Measured at Fair value on a Recurring Basis
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 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, 2020 (predecessor basis):
 
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
  
Significant Unobservable Inputs Used in Fair Value Measurements
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
                        
Aggregated Summarized Financial Information of Investees
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
)