XML 28 R22.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Company's Investment

At June 30, 2024, the Company’s investments were categorized as follows:


Level		Basis for Determining Fair Value		Bank Debt (1)				Equity Securities				Total
2		Other direct and indirect observable market inputs (2)		$	4,856,092			$	—			$	4,856,092
3		Independent third-party valuation sources that employ significant unobservable inputs			252,611,393				1,410,374				254,021,767
3		Advisor valuations with significant unobservable inputs			—				224				224
Total				$	257,467,485			$	1,410,598			$	258,878,083

(1)

Includes senior secured loans

(2)

For example, quoted prices in inactive markets or quotes for comparable investments

At December 31, 2023, the Company’s investments were categorized as follows:


Level		Basis for Determining Fair Value		Bank Debt (1)				Equity Securities				Total
2		Other direct and indirect observable market inputs (2)		$	9,399,141			$	—			$	9,399,141
3		Independent third-party valuation sources that employ significant unobservable inputs			244,121,603				354,947				244,476,550
3		Advisor valuations with significant unobservable inputs			—				224				224
Total				$	253,520,744			$	355,171			$	253,875,915

(1)

Includes senior secured loans

(2)

For example, quoted prices in inactive markets or quotes for comparable investments

Schedule of Unobservable Inputs

Unobservable inputs used in the fair value measurement of Level 3 investments as of June 30, 2024 included the following:


Asset Type		Fair Value				Valuation Technique		Unobservable Input		Range (Weighted Avg.) (1)
Bank Debt		$	232,177,651			Income approach		Discount rate		9.7%-33.5% (12.9%)
			11,440,066			Market quotations		Indicative bid/ask quotes		1-3 (1)
			5,174,655			Market comparable companies		Revenue Multiples		0.4x-1.7x (0.5x)
			3,819,022			Market comparable companies		EBITDA multiples		3.3x - 9.5x (4.5x)
Equity			1,410,598			Option Pricing Model		EBITDA/Revenue multiples		2.0x -7.3 (2.0x)
								Implied volatility		45.0%-60.0% (59.7%)
								Term		1.0 year-3.0 years (3.0 years)
		$	254,021,991

(1)

Weighted by fair value

Certain fair value measurements may employ more than one valuation technique, with each valuation technique receiving a relative weight between 0% and 100%. Generally, a change in an unobservable input may result in a change to the value of an investment as follows:


Input		Impact to Value if Input Increases		Impact to Value if Input Decreases
Discount rate		Decrease		Increase
Revenue multiples		Increase		Decrease
EBITDA multiples		Increase		Decrease
Book value multiples		Increase		Decrease
Implied volatility		Increase		Decrease
Term		Increase		Decrease
Yield		Increase		Decrease

Unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2023 included the following:


Asset Type		Fair Value				Valuation Technique		Unobservable Input		Range (Weighted Avg.) (1)
Bank Debt		$	232,076,026			Income approach		Discount rate		9.6%-29.7% (12.9%)
			8,598,975			Market quotations		Indicative bid/ask quotes		1 (1)
			2,888,723			Market comparable companies		Revenue Multiples		0.6x-0.9x (0.8x)
			557,879			Option Pricing Model		EBITDA/Revenue multiples		1.9x (1.9x)
								Implied volatility		65.0% (65.0%)
								Term		1.3 years (1.3 years)
Equity			354,947			Option Pricing Model		EBITDA/Revenue multiples		0.6x-15.3x (9.6x)
								Implied volatility		50.0%-65.0% (55.9%)
								Term		1.0 year-2.5 years (2.0 years)
		$	244,476,550

__________________________

(1)

Weighted by fair value

2. Summary of Significant Accounting Policies (Continued)

Schedule of Changes in Investments

Changes in investments categorized as Level 3 during the three months ended June 30, 2024 were as follows:


		Independent Third-Party Valuation
		Bank Debt				Equity Securities				Total
Beginning balance		$	255,259,966			$	1,506,254			$	256,766,220
Net realized and unrealized gains (losses)			(4,434,353	)			(123,080	)			(4,557,433	)
Acquisitions (1)			13,660,295				27,200				13,687,495
Dispositions			(9,711,451	)			—				(9,711,451	)
Transfers into Level 3 (2)			1,109,425				—				1,109,425
Transfers out of Level 3 (3)			(3,272,489	)			—				(3,272,489	)
Ending balance		$	252,611,393			$	1,410,374			$	254,021,767
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)		$	(4,366,942	)		$	(123,080	)		$	(4,490,022	)

__________________________

(1)

Includes payments received in kind and accretion of original issue and market discounts

(2)

Comprised of one investment that was transferred from Level 2 due to reduced number of market quotes

(3)

Comprised of two investments that were transferred to Level 2 due to increased observable market activity


		Valuation Designee Valuation
		Bank Debt				Equity Securities				Total
Beginning balance		$	—			$	224			$	224
Ending balance		$	—			$	224			$	224

Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)		$	-			$	-			$	-

Changes in investments categorized as Level 3 during the six months ended June 30, 2024 were as follows:


		Independent Third-Party Valuation
		Bank Debt				Equity Securities				Total
Beginning balance		$	244,121,603			$	354,947			$	244,476,550
Net realized and unrealized gains (losses)			(4,771,358	)			(1,679,932	)			(6,451,290	)
Acquisitions (1)			20,778,645				2,735,359				23,514,004
Dispositions			(10,581,911	)			—				(10,581,911	)
Transfers into Level 3 (2)			3,522,652				—				3,522,652
Transfers out of Level 3 (3)			(458,238	)			—				(458,238	)
Ending balance		$	252,611,393			$	1,410,374			$	254,021,767

Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)		$	(5,866,973	)		$	(1,679,946	)		$	(7,546,919	)

_________________________

(1) Includes payments received in kind and accretion of original issue and market discounts

(2) Comprised of three investments that were transferred from Level 2 due to reduced number of market quotes

(3) Comprised of one investment that was transferred to Level 2 due to increased observable market activity

2. Summary of Significant Accounting Policies (Continued)


		Valuation Designee Valuation
		Bank Debt				Equity Securities				Total
Beginning balance		$	—			$	224			$	224
Ending balance		$	—			$	224			$	224
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)		$	—			$	—			$	—

__________________________

Changes in investments categorized as Level 3 during the three months ended June 30, 2023 were as follows:


		Independent Third-Party Valuation
		Bank Debt				Equity Securities				Total
Beginning balance		$	219,500,190			$	426,727			$	219,926,917
Net realized and unrealized gains (losses)			1,151,732				(41,696	)			1,110,036
Acquisitions (1)			11,993,145				—				11,993,145
Dispositions			(5,926,605	)			—				(5,926,605	)
Transfers into Level 3 (2)			2,096,245				—				2,096,245
Transfers out of Level 3 (3)			(3,933,539	)							(3,933,539	)
Ending balance		$	224,881,168			$	385,031			$	225,266,199
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)		$	1,028,574			$	(41,697	)		$	986,877

__________________________

(1)

Includes payments received in kind and accretion of original issue and market discounts

(2)

Comprised of two investments that were transferred from Level 2 due to reduced number of market quotes

(3) Comprised of three investments that were transferred to Level 2 due to increased observable market activity

Changes in investments categorized as Level 3 during the six months ended June 30, 2023 were as follows:


		Independent Third-Party Valuation
		Bank Debt				Equity Securities				Total
Beginning balance		$	202,878,661			$	549,038			$	203,427,699
Net realized and unrealized gains (losses)			804,274				(164,007	)			640,267
Acquisitions (1)			28,086,246				—				28,086,246
Dispositions			(6,886,420	)			—				(6,886,420	)
Transfers into Level 3 (2)			3,931,946				—				3,931,946
Transfers out of Level 3 (3)			(3,933,539	)			—				(3,933,539	)
Ending balance		$	224,881,168			$	385,031			$	225,266,199
Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)		$	626,328			$	(164,007	)		$	462,321

_________________________

(1) Includes payments received in kind and accretion of original issue and market discounts

(2) Comprised of three investments that were transferred from Level 2 due to reduced number of market quotes

(3) Comprised of three investments that were transferred to Level 2 due to increased observable market activity

Schedule of Cost for U.S. Federal Income Tax


		December 31, 2023
Tax Cost		$	259,777,529

Gross Unrealized Appreciation			2,053,159
Gross Unrealized Depreciation			(7,954,773	)
Net Unrealized Appreciation (Depreciation)		$	(5,901,614	)

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details