Discretionary Repurchase of Shares of Common Stock and Distributions

6 Months Ended

Jun. 30, 2023

Discretionary Repurchase of Shares of Common Stock and Distributions [Abstract]

Discretionary Repurchase of Shares of Common Stock and Distributions

Note 10. Discretionary Repurchase of Shares of Common Stock and Distributions

Beginning with the quarter ended September 30, 2022, the Company began to conduct quarterly tender offers, at the Board’s discretion, in accordance with the requirements of Rule 13e-4 under the Exchange Act and the 1940 Act, to permit Stockholders to tender their shares of common stock at a specific per share price (“Purchase Price”) based on the Company’s NAV as of the last date of the quarter in which the tender offer is conducted. The Company intends to conduct each tender offer to repurchase up to 2.5% of the number of shares of common stock outstanding as of the end of the prior quarter in which the tender offer is conducted, subject to numerous restrictions that limit Stockholders’ ability to sell their shares of common stock.

During the quarter ended December 31, 2022, the Company commenced a tender offer (the “Q4 2022 Tender Offer”) pursuant to which the Company offered to repurchase up to 108,930.54 shares of common stock for $2,746,138 from the Stockholders at a Purchase Price of $25.21, which represented 2.5% of the Company’s outstanding shares of common stock as of September 30, 2022. Stockholders who tendered shares of common stock in the Q4 2022 Tender Offer received, at the expiration of the Q4 2022 Tender Offer, a non-interest bearing, non-transferable promissory note entitling such Stockholders to an amount in cash equal to the number of shares of common stock accepted for purchase multiplied by the Purchase Price. The Q4 2022 Tender Offer expired on January 16, 2023. As of June 30, 2023, the Q4 2022 Tender Offer has been fully paid.

During the quarter ended March 31, 2023, the Company commenced a tender offer (the “Q1 2023 Tender Offer”) pursuant to which the Company offered to repurchase up to  164,813.65 shares of common stock for $4,252,192 from the Stockholders at a Purchase Price of $25.80, which represented 2.5% of the Company’s outstanding shares of common stock as of December 31, 2022. Stockholders who tendered shares of common stock in the Q1 2023 Tender Offer received, at the expiration of the Q1 2023 Tender Offer, a non-interest bearing, non-transferable promissory note entitling such Stockholders to an amount in cash equal to the number of shares of common stock accepted for purchase multiplied by the Purchase Price. The Q1 2023 Tender Offer expired on March 31, 2023. As of June 30, 2023, the Q1 2023 Tender Offer has been fully paid.

During the quarter ended June 30, 2023, the Company commenced a tender offer (the “Q2 2023 Tender Offer”) pursuant to which the Company offered to repurchase up to 180,212.21 shares of common stock for $4,696,330 from the Stockholders at a Purchase Price of $26.06, which represented 2.5% of the Company’s outstanding shares of common stock as of March 31, 2023. Stockholders who tendered shares of common stock in the Q2 2023 Tender Offer received, at the expiration of the Q2 2023 Tender Offer, a non-interest bearing, non-transferable promissory note entitling such Stockholders to an amount in cash equal to the number of shares of common stock accepted for purchase multiplied by the Purchase Price. The Q2 2023 Tender Offer expired on June 30, 2023. As of June 30, 2023, the Q2 2023 Tender Offer remains fully payable as shown on the Statements of Assets and Liabilities.

The Company’s distributions are recorded on the record date. For the six months ended June 30, 2023 distributions declared to Stockholders totaled $4,973,857, of which $2,485,103 was paid as a cash distribution and $2,488,754 was paid in the form of 98,060 shares of the Company’s common stock issued to existing Stockholders. Distribution payments have been made in accordance with Stockholders DRP payment election as disclosed in Note 2.

The following table summarizes the settlement of distributions declared and recorded as of December 31, 2022 and June 30, 2023, respectively and the subsequent payment and issuance of those distributions for the six months ended June 30, 2023:

Date Declared	Record Date	Payment/Issuance Date	Amount Per Share		Amount Paid in Cash		Amount Settled via Newly Issued Shares		Total
For the six months ended June 30, 2023
December 31, 2022	December 31, 2022	January 26, 2023	$	0.66	$	2,169,650	$	2,181,430	$	4,351,080
April 3, 2023	April 3, 2023	May 5, 2023		0.69		2,485,103		2,488,754		4,973,857
Total			$	1.35	$	4,654,753	$	4,670,184	$	9,324,937

The following table summarizes the settlement of distributions declared and recorded as of December 31, 2021, May 18, 2022 and June 30, 2022, respectively, and the subsequent payment and issuance of those distributions for the six months ended June 30, 2022:

Date Declared	Record Date	Payment/Issuance Date	Amount Per Share		Amount Paid in Cash		Amount Settled via Newly Issued Shares		Total
For the six months ended June 30, 2022:
December 31, 2021	December 31, 2021	January 14, 2022	$	0.46	$	662,190	$	615,437	$	1,277,627
May 18, 2022	May 18, 2022	May 20, 2022		0.30		626,388		560,883		1,187,271
June 30, 2022	June 30, 2022	July 29, 2022		0.57		1,346,329		921,955		2,268,284
Total			$	1.33	$	2,634,907	$	2,098,275	$	4,733,182