INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Schedule of tax character of distributions paid

	December 31, 2023		December 31, 2022
Ordinary income	$	35,032,563	$	22,279,384
Qualified dividends		48,171		525,313
Distributions of long-term capital gains(2)		446,746		3,789,693
Total distributions paid to common stockholders(3)	$	35,527,480	$	26,594,390

(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 $446,746 and $3,789,693 as of December 31, 2023 and December 31, 2022, respectively, 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 2023 and 2022, respectively, represents the completion of a distribution of qualified dividends derived from qualified dividends received by the Company from a portfolio company in 2022 and 2021, respectively, for tax purposes.

(3) Total distributions paid to common stockholders of $36,698,834 and $26,594,390 as of December 31, 2023 and December 31, 2022, 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 2023 and 2022, 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, which were recognized in the following year for tax purposes.

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

	2023		2022		2021
Net increase in net assets resulting from operations (includes net investment income, realized gain (loss), unrealized appreciation (depreciation) and taxes)	$	17,533,167	$	14,491,784	$	33,572,872
Net change in unrealized (appreciation) depreciation		(2,785,648)		17,536,190		6,928,160
Income tax provision		(2,860,890)		213,214		2,446,352
Loss on debt extinguishment						539,250
Pre-tax expense (income), loss (gain) reported at Taxable Subsidiaries, not consolidated for tax purposes		20,172,550		1,392,247		(16,619,608)
Long term capital loss carryover		—		—		(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		11,860,086		(3,615,815)		3,205,514
Estimated taxable income	$	43,919,265	$	30,017,620	$	25,175,897
Taxable income earned in prior year and carried forward for distribution in current year		28,606,043		24,011,459		21,051,549
Adjustment for cumulative effect of distributions carried forward		—		—		—
Taxable income earned prior to period end and carried forward		(36,997,828)		(28,606,043)		(25,182,518)
Distribution payable as of period end and paid in following period		—		—		1,171,059
Total distributions accrued or paid to common stockholders	$	35,527,480	$	25,423,036	$	22,215,987

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

	December 31, 2023		December 31, 2022
Aggregate cost of portfolio company securities	$	902,143,550	$	875,823,177
Gross unrealized appreciation of portfolio company securities		38,379,839		28,927,746
Gross unrealized depreciation of portfolio company securities		(65,262,547)		(58,602,607)
Gross unrealized appreciation on foreign currency translations of portfolio company securities		11,142		—
Gross unrealized depreciation on foreign currency translations of portfolio company securities		(811,301)		(1,414,678)
Aggregate fair value of portfolio company securities	$	874,460,683	$	844,733,638

Schedule of deferred tax (liability) asset

	2023		2022
Deferred tax asset	$	6,507,196	$	4,939,367
Deferred tax liability		(188,893)		(61,936)
Total deferred tax asset before valuation allowance	$	6,318,303	$	4,877,431
Deferred tax valuation allowance	$	(6,507,196)	$	(4,939,367)
Net deferred tax liability	$	(188,893)	$	(61,936)