INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of tax character of distributions paid


	December 31, 2022		December 31, 2021
Ordinary income	$	22,279,384	$	20,002,924
Qualified dividends		525,313		42,004
Distributions of long-term capital gains⁽²⁾		3,789,693		1,000,000
Total distributions paid to common stockholders⁽³⁾	$	26,594,390	$	21,044,928

(1)

The Company’s taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, final taxable income earned in each period, and the undistributed ordinary income and capital gains for each period carried forward for distribution in the following period, may be different than this estimate.

(2)

Distributions of long-term capital gains of $3,789,693 as of December 31, 2022 and December 31, 2021 differ from distributions of net capital gains on the Consolidated Statement of Changes in Net Assets because certain prepayment gains are characterized differently for tax reporting purposes. The qualified dividend amount in 2022 and 2021, respectively, represents the completion of a distribution of qualified dividends derived from qualified dividends received by the Company from a portfolio company in 2021 and 2020, respectively, for tax purposes.

(3)

Total distributions paid to common stockholders of $26,594,390 and $21,044,928 as of December 31, 2022 and December 31, 2021, respectively, differ from the total distributions from net investment income and net realized capital gains on the Consolidated Statement of Changes in Net Assets because the amount of dividends attributable to 2022 and 2021, respectively, for tax reporting purposes are on an amount paid basis. The Company recorded dividends payable for distributions accrued, but not yet paid, on the Consolidated Statement of Assets and Liabilities in the amount of $0 and $1,171,059 as of December 31, 2022 and December 31, 2021, respectively.

Schedule of reconciliation of "Net increase in net assets resulting from operations" to taxable income and total distributions declared


	2022		2021		2020
Net increase in net assets resulting from operations (includes net investment income, realized gain (loss), unrealized appreciation (depreciation) and taxes)	$	14,491,784	$	33,572,872	$	20,192,441
Net change in unrealized depreciation (appreciation)		17,536,190		6,928,160		(8,555,274)
Income tax provision		213,214		2,446,352		224,877
Loss on debt extinguishment				539,250
Pre-tax expense (income), loss (gain) reported at Taxable Subsidiaries, not consolidated for tax purposes		1,392,247		(16,619,608)		65,484
Long term capital loss carryover		—		(4,896,643)		4,896,643
Book income and tax income differences, including debt origination, interest accrual, income from pass-through investments, dividends, realized gains (losses) and changes in estimates		(3,615,815)		3,205,514		2,840,954
Estimated taxable income	$	30,017,620	$	25,175,897	$	19,665,125
Taxable income earned in prior year and carried forward for distribution in current year		24,011,459		21,051,549		22,434,805
Adjustment for cumulative effect of distributions carried forward		—		—		1,354,578
Taxable income earned prior to period end and carried forward		(28,606,043)		(25,182,518)		(21,051,549)
Distribution payable as of period end and paid in following period		—		1,171,059		—
Total distributions accrued or paid to common stockholders	$	25,423,036	$	22,215,987	$	22,402,959

Schedule of aggregate gross unrealized appreciation and depreciation, the net unrealized appreciation ad cost for U.S. federal income tax purpose


	2022		2021
Aggregate cost of portfolio company securities	$	875,823,177	$	785,005,959
Gross unrealized appreciation of portfolio company securities		28,927,746		27,283,420
Gross unrealized depreciation of portfolio company securities		(58,602,607)		(39,416,053)
Gross unrealized depreciation on foreign currency translations of portfolio company securities		(1,414,678)		—
Aggregate fair value of portfolio company securities	$	844,733,638	$	772,873,326

Schedule of deferred tax (liability) asset


	2022		2021
Deferred tax asset	$	4,939,367	$	594,582
Deferred tax liability		(61,936)		(109,598)
Total deferred tax asset before valuation allowance	$	4,877,431	$	484,984
Deferred tax valuation allowance	$	(4,939,367)	$	(333,706)
Net deferred tax (liability) asset	$	(61,936)	$	151,278