INCOME TAXES

12 Months Ended

Dec. 31, 2023

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 10 — INCOME TAXES

The Company adopted a tax year end of March 31 and elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes under Subchapter M of the Code. However, there is no guarantee that the Company will qualify to make such an election for any taxable year. As a RIC, the Company generally will not pay corporate-level income tax if it distributes to stockholders at least 90% of its investment company taxable income (“ICTI”) (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of the current year distribution into the next tax year. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI. The amount to be paid out as a distribution is determined by the Board each quarter and is based upon the annual earnings estimated by the management of the Company. To the extent the Company’s earnings fall below the amount of dividend distributions declared, however, a portion of the total amount of the Company’s distributions for the tax year may be deemed a return of capital for tax purposes to the Company’s stockholders.

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 tax year. Therefore, the final taxable income earned in each tax year and carried forward for distribution in the following tax year may be different than this estimate.

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income (loss) and realized gains recognized for financial reporting purposes.

During the year ended December 31, 2023, the period from April 1, 2022 through December 31, 2022, and the period ended March 31, 2022, the Company reclassified for book purposes amounts arising from permanent book to tax differences primarily related to net operating loss forfeiture for income tax purposes.

	December 31, 2023			December 31, 2022		March 31, 2022
Increase (decrease) in additional paid in capital	$	121,099		$	-	$	(295,235	)
Increase (decrease) in distributed earnings (accumulated loss)		(121,099	)		-		295,235

As of March 31, 2023, the Company has no capital loss carryforwards for federal income tax purposes, which can be used to offset future capital gains. Any such losses are permitted to be carried forward indefinitely.

For income tax purposes, distributions paid to shareholders are reported as ordinary income, return of capital, long-term capital gains, or a combination thereof. For the tax period from April 1, 2023 through December 31, 2023, the tax year from April 1, 2022 to March 31, 2023, and the tax period from January 1, 2022 through March 31, 2022, the Company paid the following distributions.

	For the period from April 1, 2023 through December 31, 2023		For the period from April 1, 2022 through March 31, 2023		For the period from January 1, 2022 through March 31, 2022
Ordinary Income	$	8,265,537	$	-	$	-
Total Distributions	$	8,265,537	$	-	$	-

As of March 31, 2023, the components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Statements of Assets and Liabilities by temporary book or tax differences primarily arising from the tax treatment of organizational costs.

	March 31, 2023			March 31, 2022
Undistributed ordinary income	$	3,418,714		$	-
Net unrealized appreciation (depreciation) on investments		713,009			-
Other temporary differences		(399,948	)		(427,845	)
Total	$	3,731,775		$	(427,845	)

The following table sets forth the tax cost basis and the estimated aggregate gross unrealized appreciation and depreciation from investments and cash equivalents for federal income tax purposes for the fiscal years ended December 31, 2023 and December 31, 2022 and the fiscal period ended March 31, 2022.

	December 31, 2023			December 31, 2022			March 31, 2022
Tax cost of investments and cash equivalents	$	86,082,952		$	85,653,218		$	84,766,060
Unrealized appreciation	$	784,052		$	-		$	-
Unrealized depreciation		(135,369	)		(273,348	)		-
Net unrealized appreciation (depreciation) from investments and cash equivalents	$	648,683		$	(273,348	)	$	-

There were no differences between book-basis and tax-basis unrealized appreciation (depreciation) from investments.