Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Differences Reclassified for Tax Purposes |
The following differences were reclassified for tax purposes for the years ended December 31, 2024 and December 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
(Decrease) increase in capital in excess of par value |
|
$ |
(381,550 |
) |
|
$ |
4,336,903 |
|
Increase (decrease) in total distributable earnings |
|
|
381,550 |
|
|
|
(4,336,903 |
) |
|
| Schedule of Reconciliation of Net Increase in Net Assets Resulting From Operations to Taxable Income |
The following table reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2024 and December 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Net increase in net assets resulting from operations |
|
$ |
8,827,612 |
|
|
$ |
6,526,650 |
|
Net change in unrealized appreciation/depreciation on investments |
|
|
5,722,329 |
|
|
|
(2,867,520 |
) |
Net change in deferred tax asset/liability |
|
|
376,989 |
|
|
|
(77,734 |
) |
GAAP versus tax basis consolidation of subsidiaries |
|
|
(32,936 |
) |
|
|
(1,332,687 |
) |
Other permanent book income and tax income differences |
|
|
37,498 |
|
|
|
1,348,624 |
|
Temporary book income and tax income differences |
|
|
(2,270,112 |
) |
|
|
(82,198 |
) |
Taxable income |
|
$ |
12,661,380 |
|
|
$ |
3,515,135 |
|
|
| Schedule of Tax Character of Distributions Paid and Deemed Paid |
The tax character of distributions paid and deemed paid during the years ended December 31, 2024 and December 31, 2023 was as follows:
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Ordinary income |
|
$ |
3,427,968 |
|
|
$ |
3,432,757 |
|
Long-term capital gains |
|
|
9,554,568 |
|
|
|
— |
|
Return of Capital |
|
|
— |
|
|
|
— |
|
Total |
|
$ |
12,982,536 |
|
|
$ |
3,432,757 |
|
|
| Schedule of Components of Distributable Earnings/(Accumulated Losses) and Reconciliation to Accumulated Earnings/(Deficit) |
The tax basis components of distributable earnings (accumulated losses) and reconciliation to accumulated earnings (deficit) on a book basis for the years ended December 31, 2024 and December 31, 2023 were as follows:
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Undistributed ordinary income – tax basis |
|
$ |
11,649 |
|
|
$ |
332,806 |
|
Capital loss carry forwards |
|
|
— |
|
|
|
(1,546,597 |
) |
Unrealized appreciation on investments |
|
|
3,843,912 |
|
|
|
9,906,212 |
|
Other temporary differences |
|
|
(1,313,179 |
) |
|
|
(2,376,665 |
) |
Total accumulated earnings – book basis |
|
$ |
2,542,382 |
|
|
$ |
6,315,756 |
|
|
| Schedule of Net Deferred Tax Asset |
The tax effect of the major temporary differences and carryforwards that give rise to the Corporation’s net deferred tax asset at December 31, 2024 and 2023 are approximately as follows:
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
Investments |
|
$ |
(635,300 |
) |
|
$ |
(644,497 |
) |
NOL & tax credit carryforwards |
|
|
637,461 |
|
|
|
683,676 |
|
Deferred tax asset, net |
|
$ |
2,161 |
|
|
$ |
39,179 |
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
The components of income tax expense (benefit) reported in the consolidated statements of operations are as follows for the years ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(85,356 |
) |
|
$ |
609,056 |
|
|
$ |
173,235 |
|
State |
|
|
5,292 |
|
|
|
58,320 |
|
|
|
(2,555 |
) |
|
|
|
(80,064 |
) |
|
|
667,376 |
|
|
|
170,680 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
62,619 |
|
|
|
(13,797 |
) |
|
|
92,304 |
|
State |
|
|
(25,600 |
) |
|
|
2,778 |
|
|
|
60,538 |
|
|
|
|
37,019 |
|
|
|
(11,019 |
) |
|
|
152,842 |
|
Total |
|
$ |
(43,045 |
) |
|
$ |
656,357 |
|
|
$ |
323,522 |
|
|
| Schedule of Reconciliation of the Expense (Benefit) From Income Taxes at the Federal Statutory Rate |
A reconciliation of the expense (benefit) from income taxes at the federal statutory rate to the expense reported is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Net investment income (loss), realized gain (loss) and unrealized gain (loss) before income taxes |
|
$ |
8,784,567 |
|
|
$ |
7,183,007 |
|
|
$ |
(558,327 |
) |
Expected tax expense (benefit) at statutory rate |
|
|
1,844,759 |
|
|
|
1,508,431 |
|
|
|
(117,249 |
) |
State - net of federal effect |
|
|
(14,673 |
) |
|
|
48,267 |
|
|
|
45,807 |
|
Pass-through expense (benefit) from portfolio investment |
|
|
4,145 |
|
|
|
487 |
|
|
|
721 |
|
Change in valuation allowance |
|
|
232,133 |
|
|
|
131,338 |
|
|
|
— |
|
Tax benefit of RIC status |
|
|
(2,169,298 |
) |
|
|
(1,067,238 |
) |
|
|
400,329 |
|
RIC excise tax expense |
|
|
37,388 |
|
|
|
52,800 |
|
|
|
— |
|
Other |
|
|
22,501 |
|
|
|
(17,728 |
) |
|
|
(6,086 |
) |
Total |
|
$ |
(43,045 |
) |
|
$ |
656,357 |
|
|
$ |
323,522 |
|
|