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INVESTMENTS

3 Months Ended

Sep. 30, 2024

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 September 30, 2024 and June 30, 2024:

	Fair Value		Fair Value
Asset Type	September 30, 2024		June 30, 2024
Non Traded Companies	$	990,317	$	1,341,164
GP Interests (Equity method investment with fair value option election)		1,784,470		3,906,326
LP Interests (Equity method investment with fair value option election)		773,001		796,940
Total	$	3,547,788	$	6,044,430

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 September 30, 2024 and June 30, 2024.

During the three months ended September 30, 2024, we realized a total net gain of $151,370 from two investment liquidations and disposals (Blackstone Real Estate Income Trust, Inc. and Highlands REIT, Inc.). During the three months ended September 30, 2023, no realized gain or loss on investments was recognized.

The following table presents fair value measurements of our investments as of September 30, 2024 and June 30, 2024, according to the fair value hierarchy that is described in our annual report on Form 10-K:

	As of September 30, 2024
Asset Type	Total		Level I		Level II		Level III
Non Traded Companies	$	990,317	$	-	$	-	$	990,317
GP Interests		1,784,470		-		-		1,784,470
LP Interests		773,001		-		-		773,001
Total	$	3,547,788	$	-	$	-	$	3,547,788

	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

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, 2024:

Balance at July 1, 2024	$	6,044,430
Purchases of investments		171,064
Transfer to Investments in Real Estate		(2,627,725	)
Proceeds from sales, net		(670,727	)
Net realized gain		151,370
Net unrealized gain		479,376
Ending balance at September 30, 2024	$	3,547,788

For the three months ended September 30, 2024, net change in unrealized losses included in earnings relating to Level III investments still held at September 30, 2024 was $146,930.

Balance at July 1, 2023	$	22,148,980
Purchases of investments		393,530
Return of capital distributions		(21,000	)
Net unrealized loss		(2,267,248	)
Ending balance at September 30, 2023	$	20,254,262

There were no transfers of investments from Level III to Level I category during the three months ended September 30, 2023.

For the three months ended September 30, 2023, net change in unrealized losses included in earnings relating to Level III investments still held at September 30, 2023 was $2,267,248.

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

Asset Type

Fair Value

Primary Valuation

Techniques

Unobservable Inputs Used

Range

Weighted

Average

Non Traded Companies

990,317

Market Activity

Secondary market industry publication

Acquisition cost

GP Interests

1,784,470

Direct Capitalization Method

Capitalization rate

6.3% - 6.5%

6.4%

Discount rate

6.8% - 7.0%

6.9%

LP Interests

768,051

Discounted Cash Flow

Discount rate

7.0%

LP Interests

4,950

Estimated Liquidation Value

Sponsor provided value

3,547,788

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%

LP Interests

4,950

Estimated Liquidation Value

Sponsor provided value

6,044,430

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 September 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 September 30, 2024 and June 30, 2024, none of our investments in securities were considered unconsolidated significant subsidiaries under the SEC rules described above.