| Summary of the Significant Unobservable Inputs to Determine the Fair Value of Level 3 Portfolio Investments |
The following table provides a summary of the significant unobservable inputs used to determine the fair value of the Corporation’s Level 3 portfolio investments as of March 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type
|
|
Market Approach EBITDA Multiple |
|
|
Market Approach Liquidation Seniority |
|
|
Market Approach
Revenue Multiple |
|
|
Market Approach Transaction Pricing |
|
|
Totals |
|
Non-Control/Non-Affiliate Equity |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
700,000 |
|
|
$ |
100,038 |
|
|
$ |
800,038 |
|
Non-Control/Non-Affiliate Loan and Debt |
|
|
4,633,366 |
|
|
|
2,233,797 |
|
|
|
— |
|
|
|
— |
|
|
|
6,867,163 |
|
Total Non-Control/Non-Affiliate |
|
$ |
4,633,366 |
|
|
$ |
2,233,797 |
|
|
$ |
700,000 |
|
|
$ |
100,038 |
|
|
$ |
7,667,201 |
|
Affiliate Equity |
|
$ |
6,608,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,875,000 |
|
|
$ |
16,483,000 |
|
Affiliate Loan and Debt |
|
|
31,744,577 |
|
|
|
— |
|
|
|
— |
|
|
|
4,262,585 |
|
|
|
36,007,162 |
|
Total Affiliate |
|
$ |
38,352,577 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
14,137,585 |
|
|
$ |
52,490,162 |
|
Control Equity |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Control Loan and Debt |
|
|
2,000,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,000,000 |
|
Total Control |
|
$ |
2,000,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,000,000 |
|
Total Level 3 Investments |
|
$ |
44,985,943 |
|
|
$ |
2,233,797 |
|
|
$ |
700,000 |
|
|
$ |
14,237,623 |
|
|
$ |
62,157,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|
4X - 10X |
|
|
1X |
|
|
3.5X |
|
|
Not Applicable |
|
|
|
|
Unobservable Input |
|
EBITDA Multiple |
|
|
Asset Value |
|
|
Revenue Multiple |
|
|
Transaction Price |
|
|
|
|
Weighted Average |
|
5.6X |
|
|
1X |
|
|
3.5X |
|
|
Not Applicable |
|
|
|
|
|
| summary of the components of Assets Measured at Fair Value |
The following table provides a summary of the components of Level 1, 2 and 3 Assets Measured at Fair Value at March 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at Reported Date Using |
|
Description
|
|
March 31, 2025 |
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
|
Significant
Observable Inputs
(Level 2) |
|
|
Other Significant
Unobservable
Inputs
(Level 3) |
|
Loan investments |
|
$ |
9,123,425 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,123,425 |
|
Debt investments |
|
|
35,750,900 |
|
|
|
— |
|
|
|
— |
|
|
|
35,750,900 |
|
Equity investments |
|
|
17,283,038 |
|
|
|
— |
|
|
|
— |
|
|
|
17,283,038 |
|
Total |
|
$ |
62,157,363 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
62,157,363 |
|
The following table provides a summary of the components of Level 1, 2 and 3 Assets Measured at Fair Value at December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at Reported Date Using |
|
Description
|
|
December 31, 2024 |
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
|
Significant
Observable Inputs
(Level 2) |
|
|
Other Significant
Unobservable
Inputs
(Level 3) |
|
Loan investments |
|
$ |
15,037,873 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
15,037,873 |
|
Debt investments |
|
|
38,043,721 |
|
|
|
— |
|
|
|
— |
|
|
|
38,043,721 |
|
Equity investments |
|
|
17,736,447 |
|
|
|
— |
|
|
|
— |
|
|
|
17,736,447 |
|
Total |
|
$ |
70,818,041 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
70,818,041 |
|
|
| Summary of changes in Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) |
The following table provides a summary of changes in Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) for the three months ended March 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3) |
|
Description |
|
Loan Investments |
|
|
Debt
Investments |
|
|
Equity
Investments |
|
|
Total |
|
Ending balance December 31, 2024, of Level 3 Assets |
|
$ |
15,037,873 |
|
|
$ |
38,043,721 |
|
|
$ |
17,736,447 |
|
|
$ |
70,818,041 |
|
Realized gains (losses) included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
GoNoodle, Inc. (GoNoodle) |
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
(25 |
) |
Microcision, LLC (Microcision) |
|
|
— |
|
|
|
— |
|
|
|
55,357 |
|
|
|
55,357 |
|
Pressure Pro, Inc. (Pressure Pro) |
|
|
— |
|
|
|
— |
|
|
|
870,000 |
|
|
|
870,000 |
|
Total realized gains, net |
|
|
— |
|
|
|
— |
|
|
|
925,332 |
|
|
|
925,332 |
|
Unrealized gains (losses) included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
BMP Food Service Supply Holdco, LLC (FSS) |
|
|
— |
|
|
|
— |
|
|
|
(247,619 |
) |
|
|
(247,619 |
) |
Inter-National Electronic Alloys LLC (EFINEA) |
|
|
— |
|
|
|
— |
|
|
|
288,235 |
|
|
|
288,235 |
|
ITA Acquisition, LLC (ITA) |
|
|
(875,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
(875,000 |
) |
Pressure Pro |
|
|
— |
|
|
|
— |
|
|
|
(720,000 |
) |
|
|
(720,000 |
) |
Seybert’s Billiards Corporation (Seybert’s) |
|
|
— |
|
|
|
— |
|
|
|
256,000 |
|
|
|
256,000 |
|
Total unrealized losses, net |
|
|
(875,000 |
) |
|
|
— |
|
|
|
(423,384 |
) |
|
|
(1,298,384 |
) |
Purchases of securities/changes to securities/non-cash
conversions: |
|
|
|
|
|
|
|
|
|
|
|
|
Autotality (formerly Filterworks Acquisition USA, LLC) |
|
|
— |
|
|
|
58,573 |
|
|
|
— |
|
|
|
58,573 |
|
Caitec, Inc. (Caitec) |
|
|
158,454 |
|
|
|
— |
|
|
|
— |
|
|
|
158,454 |
|
FCM Industries Holdco LLC (First Coast Mulch) |
|
|
— |
|
|
|
12,222 |
|
|
|
— |
|
|
|
12,222 |
|
FSS |
|
|
— |
|
|
|
212,770 |
|
|
|
— |
|
|
|
212,770 |
|
GoNoodle, Inc. (GoNoodle) |
|
|
— |
|
|
|
3,601 |
|
|
|
— |
|
|
|
3,601 |
|
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
31,751 |
|
|
|
— |
|
|
|
31,751 |
|
ITA |
|
|
375,000 |
|
|
|
— |
|
|
|
— |
|
|
|
375,000 |
|
Mobile RN Holdings LLC (Mobile IV Nurses) |
|
|
— |
|
|
|
6,266 |
|
|
|
— |
|
|
|
6,266 |
|
Mountain Regional Equipment Solutions (MRES) |
|
|
— |
|
|
|
124,575 |
|
|
|
— |
|
|
|
124,575 |
|
Pressure Pro |
|
|
— |
|
|
|
22,445 |
|
|
|
— |
|
|
|
22,445 |
|
Seybert’s |
|
|
— |
|
|
|
31,950 |
|
|
|
— |
|
|
|
31,950 |
|
Total purchases of securities/changes to securities/non-cash
conversions |
|
|
533,454 |
|
|
|
504,153 |
|
|
|
— |
|
|
|
1,037,607 |
|
Repayments and sales of securities: |
|
|
|
|
|
|
|
|
|
|
|
|
HDI Acquisition LLC (Hilton Displays) |
|
|
— |
|
|
|
(1,071,824 |
) |
|
|
— |
|
|
|
(1,071,824 |
) |
Mattison Avenue Holdings LLC (Mattison) |
|
|
(5,572,902 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,572,902 |
) |
Microcision |
|
|
— |
|
|
|
— |
|
|
|
(55,357 |
) |
|
|
(55,357 |
) |
Pressure Pro |
|
|
— |
|
|
|
(1,725,150 |
) |
|
|
(900,000 |
) |
|
|
(2,625,150 |
) |
Total repayments and sales of securities |
|
|
(5,572,902 |
) |
|
|
(2,796,974 |
) |
|
|
(955,357 |
) |
|
|
(9,325,233 |
) |
Ending balance March 31, 2025, of Level 3 Assets |
|
$ |
9,123,425 |
|
|
$ |
35,750,900 |
|
|
$ |
17,283,038 |
|
|
$ |
62,157,363 |
|
Change in unrealized appreciation/depreciation included in earnings related to Level 3 investments still held at reporting date |
|
|
|
|
|
|
|
|
|
|
$ |
(578,384 |
) |
The following table provides a summary of changes in Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) for the three months ended March 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3) |
|
Description
|
|
Loan Investments |
|
|
Debt
Investments |
|
|
Equity
Investments |
|
|
Total |
|
Ending balance December 31, 2023, of Level 3 Assets |
|
$ |
12,417,977 |
|
|
$ |
36,861,525 |
|
|
$ |
20,536,560 |
|
|
$ |
69,816,062 |
|
Unrealized losses included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Knoa Software, Inc. (Knoa) |
|
|
— |
|
|
|
— |
|
|
|
(100,000 |
) |
|
|
(100,000 |
) |
Total unrealized losses |
|
|
— |
|
|
|
— |
|
|
|
(100,000 |
) |
|
|
(100,000 |
) |
Purchases of securities/changes to securities/non-cash
conversions: |
|
|
|
|
|
|
|
|
|
|
|
|
Caitec, Inc. (Caitec) |
|
|
139,094 |
|
|
|
— |
|
|
|
— |
|
|
|
139,094 |
|
FCM Industries Holdco LLC (First Coast Mulch) |
|
|
— |
|
|
|
11,169 |
|
|
|
— |
|
|
|
11,169 |
|
Filterworks Acquisition USA, LLC (Filterworks) |
|
|
— |
|
|
|
14,565 |
|
|
|
— |
|
|
|
14,565 |
|
GoNoodle, Inc. (GoNoodle) |
|
|
— |
|
|
|
3,565 |
|
|
|
— |
|
|
|
3,565 |
|
HDI Acquisition LLC (Hilton Displays) |
|
|
— |
|
|
|
5,310 |
|
|
|
— |
|
|
|
5,310 |
|
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
30,831 |
|
|
|
— |
|
|
|
30,831 |
|
Inter-National Electronic Alloys LLC (EFINEA) |
|
|
— |
|
|
|
16,904 |
|
|
|
— |
|
|
|
16,904 |
|
ITA Acquisition, LLC (ITA) |
|
|
388,475 |
|
|
|
— |
|
|
|
— |
|
|
|
388,475 |
|
Mattison Avenue Holdings LLC (Mattison) |
|
|
5,503,056 |
|
|
|
— |
|
|
|
— |
|
|
|
5,503,056 |
|
Mountain Regional Equipment Solutions (MRES) |
|
|
— |
|
|
|
2,943,000 |
|
|
|
264,545 |
|
|
|
3,207,545 |
|
Pressure Pro, Inc. (Pressure Pro) |
|
|
— |
|
|
|
21,515 |
|
|
|
— |
|
|
|
21,515 |
|
Seybert’s Billiards Corporation (Seybert’s) |
|
|
— |
|
|
|
1,831,680 |
|
|
|
— |
|
|
|
1,831,680 |
|
Total purchases of securities/changes to securities/non-cash
conversions |
|
|
6,030,625 |
|
|
|
4,878,539 |
|
|
|
264,545 |
|
|
|
11,173,709 |
|
Repayments and sales of securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mattison |
|
|
(1,894,470 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,894,470 |
) |
Pressure Pro |
|
|
— |
|
|
|
(687,436 |
) |
|
|
— |
|
|
|
(687,436 |
) |
Total repayments and sales of securities |
|
|
(1,894,470 |
) |
|
|
(687,436 |
) |
|
|
— |
|
|
|
(2,581,906 |
) |
Ending balance March 31, 2024, of Level 3 Assets |
|
$ |
16,554,132 |
|
|
$ |
41,052,628 |
|
|
$ |
20,701,105 |
|
|
$ |
78,307,865 |
|
Change in unrealized appreciation/depreciation included in earnings related to Level 3 investments still held at reporting date |
|
|
|
|
|
|
|
|
|
|
$ |
(100,000 |
) |
|