10-Q 1 hcap10-qmarch312020q1x.htm 10-Q Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
 OR
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 1-35906
HARVEST CAPITAL CREDIT CORPORATION
(Exact name of registrant as specified in its charter)  
Delaware
(State or other Jurisdiction of
Incorporation or Organization)
46-1396995
(I.R.S. Employer
Identification Number)
767 Third Avenue, 29th Floor
New York, NY 10017
(Address of principal executive offices) (Zip Code)
(212) 906-3589
(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value of $0.001 per shareHCAPNASDAQ Global Market
6.125% Notes due 2022HCAPZNASDAQ Global Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer¨Accelerated filer                     ¨
Non-accelerated filerþ
Smaller reporting company    ¨
Emerging growth company¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes ¨ No þ.

There were 5,958,479 shares of the registrant’s common stock outstanding as of May 11, 2020.




HARVEST CAPITAL CREDIT CORPORATION
 
 QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER
ENDED MARCH 31, 2020
 
TABLE OF CONTENTS
 
Page
 
 
i


PART I - FINANCIAL INFORMATION
Item 1.           Consolidated Financial Statements

Harvest Capital Credit Corporation 
Consolidated Statements of Assets and Liabilities
March 31, 2020December 31, 2019
(unaudited)
ASSETS:
Non-affiliated/non-control investments, at fair value (cost of $58,893,829 at 3/31/20 and $61,379,670 at 12/31/19) $55,245,610  $60,973,556  
Affiliated investments, at fair value (cost of $49,287,516 at 3/31/20 and $48,111,833 at 12/31/19) 46,879,036  47,431,234  
Control investments, at fair value (cost of $14,108,202 at 3/31/20 and $13,958,202 at 12/31/19)8,945,050  8,404,600  
Cash 285,647  11,199,083  
Restricted cash20,464,943  10,648,199  
Interest receivable 831,825  663,191  
Accounts receivable – other 2,260,248  184,804  
Deferred financing costs 367,373  425,379  
Other assets 363,361  129,690  
Total assets $135,643,093  $140,059,736  
LIABILITIES:
Revolving line of credit $44,000,000  $43,700,000  
2022 Notes (net of deferred offering costs and unamortized discount of $571,424 at 3/31/20 and $623,276 at 12/31/19)28,178,576  28,126,724  
Accrued interest payable 163,851  152,544  
Accounts payable - base management fees581,166  593,266
Accounts payable - administrative services expense350,000  350,000
Accounts payable and accrued expenses607,612  355,720
Total liabilities 73,881,205  73,278,254  
Commitments and Contingencies (Note 8)
NET ASSETS:
Common stock, $0.001 par value, 100,000,000 shares authorized, 6,600,444 issued and 5,958,479 outstanding at 3/31/20 and 6,587,819 issued and 5,945,854 outstanding at 12/31/19 6,601  6,588  
Capital in excess of common stock 90,962,284  90,876,759  
Treasury shares, at cost, 641,965 shares at 3/31/20 and 12/31/19(6,723,505) (6,723,505) 
Accumulated over distributed earnings(22,483,490) (17,378,360) 
Total net assets 61,761,890  66,781,482  
Total liabilities and net assets $135,643,095  $140,059,736  
Common stock outstanding5,958,479  5,945,854  
Net asset value per common share $10.37  $11.23  

See accompanying notes to unaudited consolidated financial statements.
1



Harvest Capital Credit Corporation 
Consolidated Statements of Operations (Unaudited) 
Three Months Ended March 31,
20202019
Investment Income:
Interest:
Cash - non-affiliated/non-control investments $1,564,087  $1,481,111  
Cash - affiliated investments 1,301,790  960,946  
PIK - non-affiliated/non-control investments 109,634  12,119  
PIK - affiliated investments155,328  194,515  
Amortization of fees and discounts
  Non-affiliated/non-control investments89,995  226,862  
  Affiliated investments59,747  22,732  
Total interest income 3,280,581  2,898,285  
Other income6,180  139,959  
Total investment income 3,286,761  3,038,244  
Expenses:
Interest expense - revolving line of credit 321,119  10,486  
Interest expense - unused line of credit 55,396  101,749  
Interest expense - deferred financing costs 58,005  55,011  
Interest expense - 2022 Notes440,235  440,235  
Interest expense - deferred offering costs and discount51,853  48,360  
Total interest expense 926,608  655,841  
Professional fees209,045  520,334  
General and administrative231,272  254,953  
Base management fees 581,166  494,846  
Administrative services expense 350,000  350,000  
Total expenses2,298,091  2,275,974  
Net Investment Income988,670  762,270  
Net realized gains (losses):
  Non-affiliated / Non-control investments(86,427) 46,300  
  Control investments—  (10,890) 
Net realized gains (losses)(86,427) 35,410  
Net change in unrealized appreciation (depreciation) on investments:
  Non-affiliated / Non-control investments(3,242,104) (738,955) 
  Affiliated investments(1,727,883) (61,230) 
  Control investments390,450  63,500  
Net change in unrealized depreciation on investments(4,579,537) (736,685) 
Total net unrealized and realized losses on investments (4,665,964) (701,275) 
Net increase (decrease) in net assets resulting from operations $(3,677,294) $60,995  
Net investment income per share$0.17  $0.12  
Net increase (decrease) in net assets resulting from operations per share$(0.62) $0.01  
Weighted average shares outstanding (basic and diluted)5,949,548  6,302,724  

 See accompanying notes to unaudited consolidated financial statements.
2


 Harvest Capital Credit Corporation 
Consolidated Statements of Changes in Net Assets (Unaudited)
Common Stock
Three Months Ended March 31, 2020SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of December 31, 20195,945,854$6,588  $90,876,759  $(6,723,505) $(17,378,360) $66,781,482  
Net decrease in net assets resulting from operations:
Net investment income —  —  —  —  988,670  988,670  
Net realized losses—  —  —  —  (86,427) (86,427) 
Net change in unrealized depreciation on investments—  —  —  —  (4,579,537) (4,579,537) 
Distributions to stockholders (1):
Distributions—  —  —  —  (1,427,836) (1,427,836) 
Capital share transactions
Reinvestment of dividends12,625  13  85,525  —  —  85,538  
Total increase (decrease) for the three months ended March 31, 202012,625  13  85,525  —  (5,105,130) (5,019,592) 
Balance as of March 31, 20205,958,479$6,601  $90,962,284  $(6,723,505) $(22,483,490) $61,761,890  

Common Stock
Three Months Ended March 31, 2019SharesParCapital in Excess of Common StockTreasury SharesAccumulated Over Distributed EarningsTotal Net Assets
Balance as of December 31, 20186,372,581$6,554  $92,270,273  $(1,956,055) $(11,924,808) $78,395,964  
Net increase in net assets resulting from operations:
Net investment income —  —  —  —  762,270  762,270  
Net realized gains—  —  —  —  35,410  35,410  
Net change in unrealized depreciation on investments—  —  —  —  (736,685) (736,685) 
Distributions to stockholders (1):
Distributions—  —  —  —  (1,604,912) (1,604,912) 
Capital share transactions
Reinvestment of dividends7,722   77,390  —  —  77,398  
Share repurchases(190,761) —  —  (2,003,907) —  (2,003,907) 
Total increase (decrease) for the three months ended March 31, 2019(183,039)  77,390  (2,003,907) (1,543,917) (3,470,426) 
Balance as of March 31, 20196,189,542$6,562  $92,347,663  $(3,959,962) $(13,468,725) $74,925,538  


(1) Distributions exceeded net investment income for the three months ended March 31, 2020 and 2019 by the amount of $439,166 and $842,642, respectively. See "Dividends and Distributions" in Note 2.
 See accompanying notes to unaudited consolidated financial statements.

3



Harvest Capital Credit Corporation
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31,
20202019
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations $(3,677,294) $60,995  
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Payment-in-kind income (264,962) (206,634) 
Payment-in-kind income collected17,958  42,636  
Net realized (gains) losses on investments 86,427  (35,410) 
Net change in unrealized depreciation of investments 4,579,537  736,685  
Amortization of fees and discounts on investments(149,742) (249,594) 
Amortization of deferred financing costs 58,005  55,011  
Amortization of deferred offering costs and discount 51,853  48,360  
Proceeds from sales of investments15,994  —  
Purchase of investments (net of loan origination and other fees) (1,570,400) (12,227,539) 
Proceeds from principal payments 953,284  10,236,031  
Changes in operating assets and liabilities:
Increase in interest receivable (168,634) (532,903) 
Increase in accounts receivable - other and other assets (237,517) (131,754) 
Increase (decrease) in accrued interest payable 11,307  (55) 
Decrease in accounts payable and other liabilities 239,790  135,695  
Net cash used in operating activities (54,394) (2,068,476) 
Cash flows from financing activities:
Borrowings on revolving credit facility40,900,000  5,000,000  
Repayment of borrowings on revolving credit facility (40,600,000) (17,000,000) 
Repurchased shares (held in Treasury Stock)—  (2,003,908) 
Distributions to stockholders (net of stock issued under dividend reinvestment plan of $85,525 and $77,398, respectively)(1,342,298) (1,527,514) 
Net cash used in financing activities (1,042,298) (15,531,422) 
Net decrease in cash during the period(1,096,692) (17,599,898) 
Cash at beginning of period 21,847,282  28,775,548  
Cash at end of period (1)$20,750,590  $11,175,650  
Non-cash operating activities:
Regional Engine Leasing, LLC payoff received subsequent to March 31, 2020$2,196,600  $—  
Non-cash financing activities:
Value of shares issued in connection with dividend reinvestment plan $85,525  $77,398  
Supplemental disclosures of cash flow information:
Cash paid during the period for interest$805,441  $552,525  
Cash paid during the period for taxes$13,610  $12,772  

(1) Consists of cash and restricted cash of $285,647 and $20,464,943, respectively, at March 31, 2020, and $9,913,316 and $1,262,334, respectively at March 31, 2019.
4



See accompanying notes to unaudited consolidated financial statements.
5


Harvest Capital Credit Corporation
Consolidated Schedule of Investments (Unaudited)
As of March 31, 2020
Portfolio CompanyDate**IndustryInvestment (1) (2) (12) (13) (14)  Principal Cost Fair Value
Non-Control / Non-Affiliate Investments
Back Porch International, Inc. (10.8%)*09/2019High Tech IndustriesSenior Secured Term Loan, due 03/2024 (13.50%; 1M LIBOR + 10.25% + 1.00% PIK) $6,948,018  $6,833,027  $6,661,412  
Senior Secured Revolving Line of Credit, due 09/2020 (1M LIBOR + 8.00%) (4)—  —  —  
6,948,018  6,833,027  6,661,412  
Brite Media LLC (0.3%)*04/2014Media: Advertising, Printing & PublishingClass A Interest (0.86% fully diluted common equity) 125,000  173,180  
125,000  173,180  
Coastal Screen and Rail, LLC (12.3%)*01/2018Construction & BuildingSenior Secured Term Loan, due 01/2023 (14.00%; 10.50% Cash + 3.50% PIK) $7,289,547  $7,188,526  $7,289,547  
Senior Secured Revolving Line of Credit, due 07/2022 (9.46%; 3M LIBOR + 8.00%) (4)100,000  100,000  100,000  
Preferred Equity Interest (3.90% fully diluted common equity) (6)150,000  232,000  
7,389,547  7,438,526  7,621,547  
CP Holding Co., Inc.
(Choice Pet) (3.6%)*
05/2013RetailerJunior Secured Term Loan, due 06/2020 (12.00%; 7.00% current and 5.00% deferred) (10)2,899,852  3,098,300  2,224,812  
2,899,852  3,098,300  2,224,812  
Deluxe Entertainment Services Group Inc.(2.5%)*01/2019Media: Diversified & ProductionJunior Secured Term Loan, due 9/2024 (9.95%, LIBOR + 6.00% + 2.50% PIK) 516,340  516,340  516,340  
Common Equity (0.63% fully diluted common equity  2,056,418  1,051,339  
516,340  2,572,758  1,567,679  
Flavors Holdings, Inc. (6.2%)*10/2014Beverage, Food & TobaccoJunior Secured Term Loan, due 10/2021 (11.45%; 3M LIBOR +10.00% with a 1.00% LIBOR floor) 4,000,000  3,953,422  3,810,000  
4,000,000  3,953,422  3,810,000  
General Nutrition Centers, Inc. (5.2%)*02/2019Beverage, Food, & TobaccoSenior Secured Term Loan, due 05/2020 (10.12%; LIBOR + 8.75%; ABR + 7.75%) 4,213,751  4,125,619  3,202,450  
4,213,751  4,125,619  3,202,450  
GK Holdings, Inc. (2.6%)*01/2015High Tech IndustriesJunior Secured Term Loan, due 01/2022 (11.70%; 3M LIBOR + 10.25% with a 1.00% LIBOR floor) (5)3,000,000  2,972,406  1,590,000  
3,000,000  2,972,406  1,590,000  
KC Engineering & Construction Services, LLC (3.1%)*10/2017Environmental IndustriesClass A Membership Interest (3.0% fully diluted common equity) (6)875,030  1,942,265  
875,030  1,942,265  
Peerless Media, LLC (7.0%)*02/2019Media: Advertising, Printing & PublishingSenior Secured Term Loan, due 02/2024 (11.40%; 1M LIBOR + 8.50% with a 2.40% LIBOR floor + 0.50% PIK) 4,346,889  4,313,881  4,346,889  
4,346,889  4,313,881  4,346,889  
ProAir Holdings Corporation (11.6%)*09/2017Capital EquipmentJunior Secured Term Loan, due 12/2022 (13.50%) (11)7,500,000  7,424,544  7,151,000  
7,500,000  7,424,544  7,151,000  
6


Portfolio CompanyDate**IndustryInvestment (1) (2) (12) (13) (14)  Principal Cost Fair Value
Safety Services Acquisition Corp. (7.3%)*03/2017Services: BusinessSenior Secured Term Loan, due 12/2020 (10.25%; 3M LIBOR + 8.75% with a 1.00% LIBOR floor) (5)4,375,000  4,371,255  4,375,000  
04/2012Series A Preferred Stock (0.57% fully diluted common equity) 100,000  143,376  
4,375,000  4,471,255  4,518,376  
Surge Busy Bee Holdings, LLC (12.9%)*11/2017Services: BusinessSenior Secured Term Loan, due 11/2022 (11.99%; 1M LIBOR + 11.00%) 3,987,500  3,869,959  3,817,500  
Senior Secured Term Loan, due 11/2022 (15.00%; 13.00% cash + 2.00% PIK) 3,793,646  3,703,410  3,607,000  
Senior Secured Revolving Line of Credit, due 11/2021 (8.99%; 1M LIBOR + 8.00%) (4)300,000  300,000  299,500  
Class B Equity Warrants (9.50% fully diluted common equity) 152,950  221,000  
8,081,146  8,026,319  7,945,000  
Water-Land Manufacturing & Supply, LLC (4.0%)*08/2018Consumer Goods - DurableJunior Secured Term Loan, due 05/2023 (12.75%; 3M LIBOR + 10.50% with a 2.25% LIBOR floor) 2,500,000  2,463,742  2,491,000  
2,500,000  2,463,742  2,491,000  
World Business Lenders, LLC (-%)*12/2013Banking, Finance, Insurance & Real EstateClass B Equity Interest (0.28% fully diluted common equity) (8)200,000  —  
200,000  —  
Subtotal Non-Control / Non-Affiliate Investments$55,770,543  $58,893,829  $55,245,610  
Affiliate Investments
Flight Lease XII, LLC (0.6%)*03/2017Aerospace & DefenseCommon Equity Interest (19.23% fully diluted common equity) (6)389,757  345,980  
389,757  345,980  
Kleen-Tech Acquisition, LLC (11.5%)*05/2019Services: BusinessSenior Secured Term Loan, due 05/2024 (12.00%) (5)7,056,707  6,801,725  6,700,323  
Senior Secured Revolving Line of Credit, due 05/2022 (10.00%) (4)—  —  —  
Common Equity Units (7.96% fully diluted common equity) (6)250,000  201,474  
Common Equity Warrants (8.50% fully diluted common equity) (6)186,970  199,962  
7,056,707  7,238,695  7,101,759  
National Program Management & Project Controls, LLC (17.6%)*06/2018Construction & BuildingSenior Secured Term Loan, due 06/2023 (9.75%; 1M LIBOR + 8.25%) (4)5,531,972  5,457,723  5,531,972  
Class A Membership Interest (5.10% fully diluted common equity) (6)2,791,241  5,335,643  
5,531,972  8,248,964  10,867,615  
Northeast Metal
Works, LLC (17.4%)*
09/2014Metals & MiningSenior Secured Term Loan, due 06/2020 (15.00%; 11.00% Cash + 4.00% PIK) 13,254,163  13,251,325  10,716,547  
05/2017Preferred Equity Interest (22.79% fully diluted common equity; 12.0% cumulative preferred return) (6)1,515,520  —  
13,254,163  14,766,845  10,716,547  
Slappey Communications, LLC (13.0%)*05/2019TelecommunicationsSenior Secured Term Loan, due 05/2024 (13.00%; 3M LIBOR + 10.00% with a 2.50% LIBOR floor + 0.50% PIK) 7,960,078  7,818,664  7,810,826  
Senior Secured Revolving Line of Credit, due 05/2023 (3M LIBOR + 10.00% with a 2.50% LIBOR floor + 0.50% PIK) (4)—  —  —  
Common Equity Units (12.90% preferred equity / 7.59% fully diluted common equity) (6)200,000  217,000  
7,960,078  8,018,664  8,027,826  
7


Portfolio CompanyDate**IndustryInvestment (1) (2) (12) (13) (14)  Principal Cost Fair Value
Surge Hippodrome Holdings LLC (8.5%)*08/2019Services: BusinessSenior Secured Term Loan (Last Out), due 08/2024 (13.50%; 3M LIBOR + 11.50%)  5,460,000  5,143,844  4,975,425  
Common Equity Interest (10.10% fully diluted common equity) (6)360,000  148,488  
Common Equity Warrants (9.50% fully diluted common equity) (6)237,579  112,896  
5,460,000  5,741,423  5,236,809  
V-Tek, Inc. (7.4%) *03/2017Capital EquipmentSenior Secured Term Loan, due 03/2022 (12.63%; 3M LIBOR + 11.00%) 3,237,500  3,197,071  2,955,000  
Senior Secured Revolving Line of Credit, due 03/2021 (8.13%; 3M LIBOR + 6.50%) (4)1,536,097  1,536,097  1,511,500  
Common Stock (8.98% fully diluted common equity) (6)150,000  116,000  
4,773,597  4,883,168  4,582,500  
Subtotal Affiliate Investments$44,036,517  $49,287,516  $46,879,036  
Control Investments
Flight Lease VII, LLC (0.7%) *03/2016Aerospace & DefenseCommon Equity Interest (46.14% fully diluted common equity) (9)$412,500  $412,500  
412,500  412,500  
Infinite Care, LLC (13.7%) *02/2016Healthcare & PharmaceuticalsSenior Secured Term Loan, due 01/2021 (3.0%) (7)4,740,284  3,377,702  3,797,550  
Senior Secured Revolving Line of Credit, due 01/2021 (3.0%) (7)4,506,271  4,369,000  4,501,000  
Membership Interest (100% membership interests) (6) (7)5,949,000  234,000  
9,246,555  13,695,702  8,532,550  
Subtotal Control Investments$9,246,555  $14,108,202  $8,945,050  
Total Investments at 3/31/20 (179.8%) *$109,053,615  $122,289,547  $111,069,696  

* Fair value as a percentage of net assets
** Date refers to the origination date of the investment
(1)Debt investments are income-producing investments unless an investment is on non-accrual. Common equity, preferred equity, residual values and warrants are non-income-producing.
(2)For each loan, the Company has provided the interest rate in effect on the date presented, as well as the contractual components of that interest rate. In the case of the Company's variable or floating rate loans, the interest rate in effect takes into account the applicable LIBOR in effect on March 31, 2020 or, if higher, the applicable LIBOR floor.
(3)"Residual value" represents the value of the Company's share in the collateral securing the loan.
(4)Credit facility has an unfunded commitment in addition to the amounts shown in the Consolidated Schedule of Investments. See Note 8 in the accompanying Notes to the Consolidated Financial Statements for further discussion on unfunded commitments.
(5)The coupon on the loan is subject to a pricing grid based on certain leverage ratios of the portfolio company.
(6)The investment is owned by HCAP Equity Holdings, LLC, one of the Company's taxable blocker subsidiaries.
(7)Infinite Care LLC ("ICC") is in default under the terms of its credit agreement and was on non-accrual status as of March 31, 2020. ICC was current on its interest payments to the Company through December 31, 2017; however, it failed to repay the Company’s protective loan advances at various dates in the fourth quarter of 2017 as well as throughout 2018, 2019, and through March 31, 2020.  ICC was previously in breach of its minimum EBITDA, minimum fixed charge and total leverage covenants, but these breaches were waived by the Company through December 31, 2017 in connection with its entry into an agreement, dated as of January 13, 2017, with ICC relating thereto.  In October 2017, the Company exercised its rights under a stock pledge of ICC. The Company formed a wholly owned subsidiary, HCAP ICC, LLC, to exercise its proxy right under the pledge agreement and take control of ICC’s board of directors. In January 2018, the Company took control of ICC's equity after accelerating the debt and auctioning ICC’s equity in a public sale.  The Company bid a portion of its outstanding debt to gain control of ICC in connection with the public sale process. Upon the completion of the sale process in January 2018, the Company converted $2.0 million of its debt investment in ICC into shares of ICC’s membership interests.

Refer to Note 12 in the accompanying Notes to the Consolidated Financial Statements for summarized financial information for ICC for the three months ended March 31, 2020 and March 31, 2019.
8


(8)Investment is not a qualifying asset as defined under Section 55(a) of the Investment Company Act of1940, as amended (the "1940 Act"). Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets The Company's non-qualifying assets, on a fair value basis, totaled approximately 2.8% of the Company's total assets as of March 31, 2020.
(9)This is an equity investment that receives a cash flow stream based on lease payments received by Flight Lease VII, LLC. Flight Lease VII, LLC owns an aircraft that was leased to one lessee. The lessee had been in arrears on its lease payments and in June of 2018, Flight Lease VII, LLC terminated the lease. As a result of the cessation of cash flows, future payments on this equity investment will resume only if Flight Lease VII, LLC is successful in obtaining a new lessee or sells the aircraft.
(10)This portfolio company failed to make its contractual deferred interest payment on July 23, 2018 and partially paid its December 31, 2018 contractual current interest payment and failed to make any contractual interest payments throughout 2019 and through March 31, 2020. As such, this loan is on non-accrual status as of March 31, 2020.
(11)This portfolio company failed to make its contractual interest payment due for March 2020. The Company is in the process of negotiating an amendment to the existing junior secured term loan. Due to the portfolio company's liquidity issues at March 31, 2020 and the uncertainty surrounding future interest payments, the Company placed this portfolio company on non-accrual status as of March 31, 2020.
(12)The Company's Credit Facility is secured by all of the Company's assets. Refer to Note 3 in the accompanying Notes to the Consolidated Financial Statements for more information.
(13)All of the Company's portfolio investments are generally subject to restrictions on sale as "restricted securities", unless otherwise noted.
(14)Unless otherwise indicated, all portfolio company investments are Level 3 assets whose values were determined using significant unobservable inputs.

As of March 31, 2020, investments consisted of the following:

TypeAmortized CostFair Value% of Fair Value% of Net Assets
Senior Secured Debt$85,758,828  $82,199,441  74.0 %133.1 %
Junior Secured Debt20,428,754  17,783,152  16.0 %28.8 %
Equity16,101,965  11,087,103  10.0 %17.9 %
Total$122,289,547  $111,069,696  100.0 %179.8 %

The rate type of debt investments at fair value as of March 31, 2020 was as follows:

Rate TypeAmortized CostFair Value% of Fair Value% of Net Assets
Fixed Rate$49,214,532  $45,987,779  46.0 %74.5 %
Floating Rate56,973,050  53,994,814  54.0 %87.4 %
Total$106,187,582  $99,982,593  100.0 %161.9 %

The industry composition of investments at fair value as of March 31, 2020 was as follows:

9


IndustryAmortized CostFair Value% of Fair Value% of Net Assets
Aerospace & Defense$802,257  $758,480  0.7 %1.2 %
Banking, Finance, Insurance & Real Estate200,000  —  — %— %
Beverage, Food & Tobacco8,079,041  7,012,450  6.3 %11.4 %
Capital Equipment12,307,712  11,733,500  10.6 %19.0 %
Construction & Building15,687,490  18,489,162  16.7 %29.9 %
Consumer Goods - Durable2,463,742  2,491,000  2.2 %4.0 %
Environmental Industries875,030  1,942,265  1.7 %3.1 %
Healthcare & Pharmaceuticals13,695,702  8,532,550  7.7 %13.8 %
High Tech Industries9,805,433  8,251,412  7.4 %13.4 %
Media: Advertising, Printing & Publishing4,438,881  4,520,069  4.1 %7.3 %
Media: Diversified & Production2,572,758  1,567,679  1.4 %2.5 %
Metals & Mining14,766,845  10,716,547  9.7 %17.4 %