XML 33 R22.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2025

Significant Accounting Policies

Schedule of Investments Measured at Fair Value

						Fair Value Measurements as of March 31, 2025
*(in thousands)*		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Investments:
Control investments		$	24,500			$	—			$	—			$	24,500
Non-affiliate investments			8,458				—				5,800				2,658
Total investments		$	32,958			$	—			$	5,800			$	27,158

						Fair Value Measurements as of December 31, 2024
*(in thousands)*		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Investments:
Control investments		$	27,500			$	—			$	—			$	27,500
Total investments		$	27,500			$	—			$	—			$	27,500

Schedule of Reconciliation of Fair Value Changes for Investments

		Fair value measurements using significant unobservable inputs (Level 3)
*(in thousands)*		Control Investments				Affiliate Investments				Non-affiliate Investments				Total
Fair value as of January 1, 2025		$	27,500			$	—			$	—			$	27,500
Sale of portfolio securities			(4,000	)			—				—				(4,000	)
Purchases of portfolio securities			—				—				2,750				2,750
Change in unrealized appreciation			1,000				—				(92	)			908
Fair value as of March 31, 2025		$	25,500			$	—			$	2,658			$	27,158

		Fair value measurements using significant unobservable inputs (Level 3)
*(in thousands)*		Control Investments				Affiliate Investments				Non-affiliate Investments				Total
Fair value as of January 1, 2024		$	40,853			$	—			$	—			$	40,853
Purchases of portfolio securities			2,247				—				—				2,247
Change in unrealized appreciation			(1,350	)			—				—				(1,350	)
Fair value as of March 31, 2024		$	41,750			$	—			$	—			$	41,750

Schedule of Fair Value Measurement Significant Non-Observable Inputs

												Range
*(in thousands)*		Fair Value				Valuation Techniques		Unobservable Inputs				Minimum				Maximum				Weighted Average

Limited liability company investments
						Guideline Public Company Method		Proved Reserve Multiple					6,329	x			8,011	x			7,170	x
						Daily Production Multiple							29,549	x			30,631	x			30,090	x
Morgan E&P, LLC			14,000			Guideline Transaction Method		Proved Reserve Multiple					5,304	x			8,786	x			7,045	x
						Daily Production Multiple							22,297	x			32,595	x			27,446	x
						Discounted Cash Flow		Discount Rate					10.9	%			11.8	%			11.35	%

Senior debt
Morgan E&P, LLC			10,500			Yield analysis		Discount for lack of marketability					11.17	%			12.0	%			11.59	%

Preferred Stock
North American Energy Opportunities Corp.			2,658			Transaction Value		Conditions to redemption					100.0	%			100.0	%			100.0	%
						Discounted Cash Flow		Discount Rate					0	%			6.6	%			3.3	%

			27,158

												Range
*(in thousands)*		Fair Value				Valuation Techniques		Unobservable Inputs				Minimum				Maximum				Weighted Average
Limited liability company investments
								Acreage Value (per acre)				$	1,000			$	4,000			$	1,784
Equus Energy, LLC		$	4,000			Guideline Transaction Method		Proved Reserve Multiple					6.2	x			10.8	x			8.65	x
								Daily Production Multiple					24,921.7	x			45,307.1	x			40,787.19	x
						Discounted Cash Flow		Discount Rate					10.9	%			10.9	%			10.9	%
						Transaction Price						$	4,000			$	4,000			$	4,000

						Guideline Public Company Method		Proved Reserve Multiple					6,415	x			7,342	x			6,878.5	x
						Daily Production Multiple							29,948	x			40,946	x			35,447	x
Morgan E&P, LLC			13,000			Guideline Transaction Method		Proved Reserve Multiple					5,304	x			8,786	x			7,045	x
						Daily Production Multiple							22,297	x			32,595	x			27,446	x
						Discounted Cash Flow		Discount Rate					11.7	%			12.6	%			12.15	%

Senior debt
Morgan E&P, LLC			10,500			Yield analysis		Discount for lack of marketability					11.52	%			12.0	%			11.76	%

		$	27,500

Schedule of Basic and Diluted Earnings Per Share

(In thousands, except share and per-share data)		March 31, 2025				March 31, 2024
Net income attributable to common shareholders		$	3,943			$	(2,395	)
Weighted average shares outstanding - basic			13,586				13,586
Effect of dilutive securities		$	(0.05	)		$	—
Weighted average shares outstanding - diluted			15,549				13,586
Basic earnings per share		$	0.30			$	(0.17	)
Diluted earnings per share		$	0.25			$	(0.17	)

Schedule of Distributable Earnings

Negative Thick Space;		March 31, 2025				December 31, 2024
Accumulated undistributed net investment losses		$	(55,890	)		$	(54,780	)
Unrealized appreciation of portfolio securities, net			18,208				8,889
Accumulated undistributed net capital gains			(3,664	)			602
Accumulated deficit		$	(41,346	)		$	(45,289	)

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