INVESTMENTS

12 Months Ended

Jun. 30, 2024

INVESTMENTS [Abstract]

INVESTMENTS

NOTE 4 – INVESTMENTS

The following table summarizes the composition of our equity method investments with fair value option election and other equity securities at fair value as of June 30, 2024 and 2023:

	Fair Value		Fair Value
Asset Type	June 30, 2024		June 30, 2023
Non Traded Companies	$	1,341,164	$	7,388,484
GP Interests (Equity method investment with fair value option election)		3,906,326		8,716,500
LP Interests (Equity method investment with fair value option election)		796,940		6,043,996
Total	$	6,044,430	$	22,148,980

Our above total investments at fair value are disclosed in two separate lines as investments and unconsolidated investments (non-securities) in the consolidated balance sheets as of June 30, 2024 and 2023.

During the year ended June 30, 2024, we realized a total net loss of $3,016,772 from five investment liquidations and disposals (Citrus Park Hotel Holdings, LLC, Highland REIT, Inc., SmartStop Self Storage REIT, Inc., Strategic Realty Trust, Inc., and Summit Healthcare REIT, Inc.) and two investment write-offs (BP3 Affiliate, LLC and Capitol Hill Partners, LLC). During the year ended June 30, 2023, we realized a total gain of $656,984 from twelve investment liquidations and disposals (American Healthcare REIT, Inc., Coastal Realty Business Trust, REEP, Inc-A, Healthcare Trust, Inc., HGR Liquidating Trust, Secured Income, LP, SmartStop Self Storage REIT, Inc., Summit Healthcare REIT, Inc., WP Carey, Inc., 3100 Airport Way South LP, Dimensions28 LLP, Highlands REIT Inc. and KBS Real Estate Investment Trust II, Inc.).

The following table presents fair value measurements of our investments as of June 30, 2024 and 2023, according to the fair value hierarchy:

	As of June 30,2024
Asset Type	Total		Level I		Level II		Level III
Non Traded Companies	$	1,341,164	$	-	$	-	$	1,341,164
GP Interests		3,906,326		-		-		3,906,326
LP Interests		796,940		-		-		796,940
Total	$	6,044,430	$	-	$	-	$	6,044,430

	As of June 30,2023
Asset Type	Total		Level I		Level II		Level III
Non Traded Companies	$	7,388,484	$	-	$	-	$	7,388,484
GP Interests		8,716,500		-		-		8,716,500
LP Interests		6,043,996		-		-		6,043,996
Total	$	22,148,980	$	-	$	-	$	22,148,980

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 year ended June 30, 2024:

Balance at July 1, 2023	$	22,148,980
Purchases of investments		1,062,163
Transfer to Investments in Real Estate		(3,892,813	)
Proceeds from sales, net		(10,564,732	)
Return of capital distributions		(938,296	)
Net realized loss		(3,016,772	)
Net unrealized gain		1,245,900
Ending balance at June 30, 2024	$	6,044,430

For the year ended June 30, 2024, net change in unrealized losses included in earnings relating to Level III investments still held at June 30, 2024 were $1,215,172.

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 year ended June 30, 2023:

Balance at July 1, 2022	$	57,593,244
Purchases of investments		1,621,948
Transfers to Level I		(30,753	)
Transfer to Investments in Real Estate		(8,488,467	)
Proceeds from sales, net		(5,149,058	)
Return of capital distributions		(12,973,337	)
Written off contingent consideration		(57,875	)
Net realized gains		647,395
Net unrealized loss		(11,014,117	)
Ending balance at June 30, 2023	$	22,148,980

The transfer of $30,753 from Level III to Level I category during the year ended June 30, 2023 resulted from one of our investments converting from a non-traded REIT to publicly traded REIT. Transfers are assumed to have occurred at the beginning of the year.

For the year ended June 30, 2023, net change in unrealized losses included in earnings relating to Level III investments still held at June 30, 2023 were $2,815,465.

The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2024:

Asset Type	Fair Value		Primary Valuation Techniques	Unobservable Inputs Used	Range	Weighted Average
Non Traded Companies	$	1,341,164	Market Activity	Secondary market industry publication
				Acquisition cost
GP Interests		3,906,326	Direct Capitalization Method	Capitalization rate	6.3% - 6.5%		6.3%
				Discount rate	6.8% - 7.0%		7.0%
LP Interests		791,990	Discounted Cash Flow	Discount rate	7.0%		7.0%
LP Interests		4,950	Estimated Liquidation Value	Sponsor provided value
	$	6,044,430

The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2023:

Asset Type	Fair Value		Primary Valuation Techniques	Unobservable Inputs Used	Range		Weighted Average
Non Traded Companies	$	7,388,484	Market Activity	Secondary market industry publication
GP Interests		8,716,500	Direct Capitalization Method	Capitalization rate		6.3% - 6.5%		6.4%
				Discount rate		6.8% - 7.0%		7.0%
LP Interests		6,037,176	Discounted Cash Flow	Discount rate		0.0% - 9.0%		7.0%
LP Interests		6,820	Estimated Liquidation Value	Sponsor provided value		12.0%		12.0%
	$	22,148,980

Summarized 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 the Rule 8-03(b)(3) of Regulation S-X applicable for smaller reporting companies, 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. The rule requires summarized financial statements for any significant equity method investments in an annual and interim report if any of the three tests exceed 20%.

In addition to the SEC rules, ASC 323-10-50-3(c) requires summarized financial statements of our equity method investments, including those reported under the fair value option, if they are material individually or in aggregate.

None of our equity method investments accounted under the fair value option were determined to be individually significant under any of the tests and are not material in aggregate as of June 30, 2024.

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 June 30, 2024 and 2023, none of our investments in securities was considered an unconsolidated significant subsidiary under the SEC rules described above.