Significant Accounting Policies

6 Months Ended

Jun. 30, 2025

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Basis of Presentation

The following is a summary of significant accounting policies consistently followed by the Company in the preparation of

its consolidated financial statements. The Company is an investment company and accordingly applies specific accounting

and financial reporting requirements under Accounting Standards Codification, as issued by the Financial Accounting

Standards Board (“ASC”) Topic 946—Financial Services—Investment Companies (“Topic 946”). The accompanying

consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the

United States (“GAAP”) and pursuant to Articles 6, 10 and 12 of Regulation S-X. Certain reclassifications have been made

to certain prior period balances to conform with current presentation.

These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial

statements and notes related thereto for the year ended December 31, 2024, included in the Company’s annual report on

Form 10-K, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 14, 2025. The

results for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the

full fiscal year, any other interim period or any future year or period.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates

and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities

at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting

period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company deposits its cash in a financial institution and, at times, such deposits may exceed the Federal Deposit

Insurance Corporation insurance limits. As of June 30, 2025 and December 31, 2024, the Company held $119,319 and

$202,452 in cash and cash equivalents, respectively, of which no cash or cash equivalents were restricted. Of the total cash

and cash equivalents balance, $119,319 and $202,452 were held in an interest bearing accounts with U.S. Bank National

Association as of June 30, 2025 and December 31, 2024, respectively. For the three and six months ended June 30, 2025,

the Company earned $1,034 and $2,472, respectively, in interest on cash and cash equivalents balances, and the balance is

included under Interest from cash and cash equivalents in the Consolidated Statements of Operations. For the three and six

months ended June 30, 2024, the Company earned $817 and $1,753, respectively, in interest on cash and cash equivalents

balances, and the balance is included under Interest from cash and cash equivalents in the Consolidated Statements of

Operations.

Organization and Offering Costs

Organization costs consist of costs incurred to establish the Company and enable it to do business legally. Organization

costs are expensed as incurred. Offering costs consist of costs incurred in connection with the offering of the common

stock of the Company.

The Company’s initial organizational costs incurred were expensed and initial offering costs are amortized over one year.

The Company reimburses the Adviser for the organization and offering costs it incurs on the Company’s behalf. If actual

organization and offering costs incurred exceed $1 million, the Adviser or its affiliates will bear the excess costs. As of

June 30, 2025, the Company incurred $925 (since inception) of organization and offering costs.

Deferred Financing Costs

Deferred financing costs, incurred in connection with any credit facility and SBA-guaranteed debentures (see Note 5) are

deferred and amortized over the life of the respective credit facility and SBA-guaranteed debentures.

Indemnifications

In the ordinary course of its business, the Company may enter into contracts or agreements that contain indemnifications or

warranties. Future events could occur that lead to the execution of these provisions against the Company. Based on its

history and experience, management feels that the likelihood of such an event is remote.

Revenue Recognition

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by

the difference between the net proceeds from the disposition and the amortized cost basis of investment using specific

identification method without regard to unrealized gains or losses previously recognized. The Company reports current

period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized

appreciation (depreciation) on investments in the Consolidated Statements of Operations.

Investment Income

Interest income, including amortization of premium and accretion of discount, is recorded on the accrual basis to the extent

that such amounts are collected. The Company records amortized or accreted discounts or premiums as interest income

using the effective interest method or straight-line interest method, as applicable, and adjusted only for material

amendments or prepayments. Dividend income, which represents dividends from equity investments and distributions from

subsidiaries, if any, is recognized on an accrual basis to the extent that the Company collects such amount.

Original Issue Discount

Discounts to par on portfolio securities are accreted into income over the tenor of the instrument. Any remaining discount

is accreted into income upon prepayment or redemption of the instrument. The Company then amortizes such amounts

using the effective interest method as interest income over the expected life of the investment.

PIK Interest

The Company may, from time to time, hold loans in its portfolio that contain a payment-in-kind (“PIK”) interest provision.

PIK interest, computed at the contractual rate specified in each loan agreement, is periodically added to the principal

balance of the loan, rather than being paid to the Company in cash, and is recorded as interest income. Thus, the actual

collection of PIK interest in cash may be deferred until the time of debt principal repayment.

PIK interest, which is a non-cash source of income at the time of recognition, is included in the Company’s taxable income.

This affects the amount the Company would be required to distribute to its stockholders to maintain its tax treatment as a

RIC for federal income tax purposes, even though the Company has not yet collected the cash.

Fee Income

Origination fees received are recorded as deferred income and recognized as investment income over the term of the loan.

Upon prepayment of a loan, any unamortized origination fees are recorded as investment income. The Company receives

certain fees from portfolio companies, which are non-recurring in nature. Such fees include loan prepayment penalties,

structuring fees, covenant waiver fees and loan amendment fees, which are recorded as investment income when earned.

Non-accrual loans

A loan can be left on accrual status during the period the Company is pursuing repayment of the loan. Management reviews

all loans that become 90 days or more past due on principal and interest, or when there is reasonable doubt that principal or

interest will be collected, for possible placement on non-accrual status. When a loan is placed on non-accrual status, unpaid

interest credited to income is reversed. Additionally, any original issue discount and market discount are no longer accreted

to interest income as of the date such loan is placed on non-accrual status. Interest payments received on non-accrual loans

are recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-

accrual loans are restored to accrual status when past due principal and interest is paid, and, in management’s judgment,

future payments are likely to remain current. As of June 30, 2025, we had no investments on non-accrual status.

Investment Classification

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, the

Company is deemed to be an “Affiliated Person” of a portfolio company if it owns more than 5% of a portfolio company's

outstanding voting securities. The Company refers to such investments in Affiliated Persons as “Affiliated Investments.”

Under the 1940 Act, the Company is deemed to be an Affiliated Person and  to “control” a portfolio company if it owns

more than 25% of its outstanding voting securities and/or has the power to exercise control over the management or

policies of such portfolio company. Such investments in portfolio companies that the Company “controls” are referred to as

“Control Investments.”  Investments which are neither Control Investments or Affiliated Investments are referred to as

“Non-Controlled/Non-Affiliated Investments.”

Fair Value of Financial Instruments

The Company applies fair value to all of its financial instruments in accordance with ASC Topic 820—Fair Value

Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value

and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its

financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value

hierarchy.

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of

factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active

exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models

or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.

Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial

instruments classified as Level 3.

Investments for which market quotations are not readily available are valued at fair value as determined in good faith

pursuant to Rule 2a-5 under the 1940 Act and ASC Topic 820. As a general principle, the fair value of a security or other

asset is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between

market participants at the measurement date. Pursuant to Rule 2a-5, the board of directors (the “Board”) has designated the

Adviser as the valuation designee (“Valuation Designee”) for the Company to perform the fair value determination relating

to all Company investments, subject to the oversight of the Board. The Adviser may carry out its designated

responsibilities as Valuation Designee through various teams and committees. The Valuation Designee’s Board-approved

policies and procedures govern the Valuation Designee’s selection and application of methodologies for determining and

calculating the fair value of Company investments. The Valuation Designee may value Company portfolio securities for

which market quotations are not readily available and other Company assets utilizing inputs from pricing sources,

quotation reporting systems, valuation agents and other third-party sources.

The Adviser has established a valuation committee (the “Valuation Committee”) to carry out the day-to-day fair valuation

responsibilities and has adopted policies and procedures to govern activities of the Valuation Committee and the

performance of functions required to determine the fair value of the Company’s investments in good faith. These functions

include periodically assessing and managing material risks associated with fair value determinations, selecting, applying,

reviewing, and testing fair value methodologies, monitoring for circumstances that may necessitate the use of fair value,

and overseeing and evaluating pricing services used.

Distributions

Distributions to common stockholders are recorded on the record date. Subject to the discretion of and as determined by the

Board, the Company will authorize and declare ordinary cash distributions approved by the Board on a quarterly basis. The

amount to be paid out as a dividend or distribution is determined by the Board each quarter and is generally based upon the

earnings estimated by management. Net realized capital gains, if any, are distributed to shareholders at least annually,

although the Company can retain such capital gains for investment in its discretion.

The Company has adopted a dividend reinvestment plan (the “DRIP”) that provides for reinvestment of any distributions

the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the

Board authorizes and the Company declares a cash distribution, then stockholders who have not “opted out” of the DRIP

will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than

receiving the cash distribution. Shares issued under the DRIP will be issued at a price per share equal to the most recent net

asset value (“NAV”) per share as determined by the Board (subject to adjustment to the extent required by Section 23 of

the 1940 Act).

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial

Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or

expected to have minimal impact on the Company’s consolidated financial statements.

Segment Reporting

In accordance with ASC Topic 280 – “Segment Reporting (ASC 280),” the Company has determined that it has a single

operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein

and the Company does not have any intra-segment sales and transfers of assets.

The Company operates through a single operating and reporting segment with an investment objective to generate both

current income, and to a lesser extent, capital appreciation through debt and equity investments. The chief operating

decision maker (“CODM”) is comprised of the Company’s chief executive officer and chief financial officer and assesses

the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s

net increase in net assets resulting from operations (“net income”). In addition to numerous other factors and metrics, the

CODM utilizes net income as a key metric in determining the amount of dividends to be distributed to the Company’s

stockholders. As the Company’s operations comprise of a single reporting segment, the segment assets are reflected on the

accompanying consolidated balance sheet as “total assets” and the significant segment expenses are listed on the

accompanying consolidated statement of operations.