| 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 June 30, 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 |
|
|
4,799,278 |
|
|
|
2,047,463 |
|
|
|
— |
|
|
|
— |
|
|
|
6,846,741 |
|
Total Non-Control/Non-Affiliate |
|
$ |
4,799,278 |
|
|
$ |
2,047,463 |
|
|
$ |
700,000 |
|
|
$ |
100,038 |
|
|
$ |
7,646,779 |
|
Affiliate Equity |
|
$ |
6,650,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,650,000 |
|
Affiliate Loan and Debt |
|
|
34,317,475 |
|
|
|
— |
|
|
|
— |
|
|
|
1,750,000 |
|
|
|
36,067,475 |
|
Total Affiliate |
|
$ |
40,967,475 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,750,000 |
|
|
$ |
42,717,475 |
|
Control Equity |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Control Loan and Debt |
|
|
— |
|
|
|
2,000,000 |
|
|
|
— |
|
|
|
— |
|
|
|
2,000,000 |
|
Total Control |
|
$ |
— |
|
|
$ |
2,000,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,000,000 |
|
Total Level 3 Investments |
|
$ |
45,766,753 |
|
|
$ |
4,047,463 |
|
|
$ |
700,000 |
|
|
$ |
1,850,038 |
|
|
$ |
52,364,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|
4X - 11X |
|
|
1X |
|
|
3.5X |
|
|
Not Applicable |
|
|
|
|
Unobservable Input |
|
EBITDA Multiple |
|
|
Asset Value |
|
|
Revenue Multiple |
|
|
Transaction Price |
|
|
|
|
Weighted Average |
|
5.7X |
|
|
1X |
|
|
3.5X |
|
|
Not Applicable |
|
|
|
|
|
| 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 six months ended June 30, 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 (losses) gains 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 (losses) gains included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
BMP Food Service Supply Holdco, LLC (FSS) |
|
|
— |
|
|
|
— |
|
|
|
(497,619 |
) |
|
|
(497,619 |
) |
Carolina Skiff LLC (Carolina Skiff) |
|
|
— |
|
|
|
— |
|
|
|
(442,755 |
) |
|
|
(442,755 |
) |
FCM Industries Holdco LLC (First Coast Mulch) |
|
|
— |
|
|
|
484,837 |
|
|
|
— |
|
|
|
484,837 |
|
Inter-National Electronic Alloys LLC (EFINEA) |
|
|
— |
|
|
|
— |
|
|
|
488,235 |
|
|
|
488,235 |
|
ITA Acquisition, LLC (ITA) |
|
|
(875,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
(875,000 |
) |
Lumious |
|
|
(189,944 |
) |
|
|
— |
|
|
|
— |
|
|
|
(189,944 |
) |
Mobile RN Holdings LLC (Mobile IV Nurses) |
|
|
— |
|
|
|
— |
|
|
|
125,000 |
|
|
|
125,000 |
|
Mountain Regional Equipment Solutions (MRES) |
|
|
— |
|
|
|
(739,352 |
) |
|
|
— |
|
|
|
(739,352 |
) |
Pressure Pro |
|
|
— |
|
|
|
— |
|
|
|
(720,000 |
) |
|
|
(720,000 |
) |
Seybert’s Billiards Corporation (Seybert’s) |
|
|
— |
|
|
|
— |
|
|
|
256,000 |
|
|
|
256,000 |
|
Tilson Technology Management, Inc. (Tilson) |
|
|
— |
|
|
|
— |
|
|
|
(9,500,000 |
) |
|
|
(9,500,000 |
) |
Total unrealized losses, net |
|
|
(1,064,944 |
) |
|
|
(254,515 |
) |
|
|
(10,291,139 |
) |
|
|
(11,610,598 |
) |
Purchases of securities/changes to securities/non-cash
conversions: |
|
|
|
|
|
|
|
|
|
|
|
|
Autotality (formerly Filterworks Acquisition USA, LLC) |
|
|
— |
|
|
|
73,675 |
|
|
|
— |
|
|
|
73,675 |
|
Caitec, Inc. (Caitec) |
|
|
324,366 |
|
|
|
— |
|
|
|
— |
|
|
|
324,366 |
|
Carolina Skiff |
|
|
— |
|
|
|
— |
|
|
|
34,755 |
|
|
|
34,755 |
|
First Coast Mulch |
|
|
— |
|
|
|
24,893 |
|
|
|
— |
|
|
|
24,893 |
|
FSS |
|
|
— |
|
|
|
435,031 |
|
|
|
— |
|
|
|
435,031 |
|
GoNoodle, Inc. (GoNoodle) |
|
|
— |
|
|
|
7,211 |
|
|
|
— |
|
|
|
7,211 |
|
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
64,176 |
|
|
|
— |
|
|
|
64,176 |
|
ITA |
|
|
375,000 |
|
|
|
— |
|
|
|
— |
|
|
|
375,000 |
|
Mobile IV Nurses |
|
|
— |
|
|
|
12,617 |
|
|
|
— |
|
|
|
12,617 |
|
MRES |
|
|
— |
|
|
|
239,352 |
|
|
|
— |
|
|
|
239,352 |
|
Pressure Pro |
|
|
— |
|
|
|
22,445 |
|
|
|
— |
|
|
|
22,445 |
|
Seybert’s |
|
|
— |
|
|
|
64,183 |
|
|
|
— |
|
|
|
64,183 |
|
Total purchases of securities/changes to securities/non-cash
conversions |
|
|
699,366 |
|
|
|
943,583 |
|
|
|
34,755 |
|
|
|
1,677,704 |
|
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 |
) |
Seybert's |
|
|
— |
|
|
|
(120,992 |
) |
|
|
— |
|
|
|
(120,992 |
) |
Total repayments and sales of securities |
|
|
(5,572,902 |
) |
|
|
(2,917,966 |
) |
|
|
(955,357 |
) |
|
|
(9,446,225 |
) |
Transfers within Level 3 |
|
|
(4,799,278 |
) |
|
|
4,799,278 |
|
|
|
— |
|
|
|
— |
|
Ending balance June 30, 2025, of Level 3 Assets |
|
$ |
4,300,115 |
|
|
$ |
40,614,101 |
|
|
$ |
7,450,038 |
|
|
$ |
52,364,254 |
|
Change in unrealized appreciation/depreciation included in earnings related to Level 3 investments still held at reporting date |
|
|
|
|
|
|
|
|
|
|
$ |
(10,890,598 |
) |
The following table provides a summary of changes in Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) for the six months ended June 30, 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 |
|
Realized gains (losses) included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Knoa Software, Inc. (Knoa) |
|
|
— |
|
|
|
— |
|
|
|
(1,229,155 |
) |
|
|
(1,229,155 |
) |
Tilson Technology Management, Inc. (Tilson) |
|
|
— |
|
|
|
— |
|
|
|
397,264 |
|
|
|
397,264 |
|
Total realized losses, net |
|
|
— |
|
|
|
— |
|
|
|
(831,891 |
) |
|
|
(831,891 |
) |
Unrealized gains (losses) included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Filterworks Acquisition USA, LLC (Filterworks) |
|
|
— |
|
|
|
— |
|
|
|
(196,226 |
) |
|
|
(196,226 |
) |
Knoa |
|
|
— |
|
|
|
— |
|
|
|
1,129,155 |
|
|
|
1,129,155 |
|
Pressure Pro, Inc. (Pressure Pro) |
|
|
— |
|
|
|
— |
|
|
|
470,000 |
|
|
|
470,000 |
|
SciAps, Inc. (SciAps) |
|
|
— |
|
|
|
— |
|
|
|
5,586,016 |
|
|
|
5,586,016 |
|
Tilson |
|
|
— |
|
|
|
— |
|
|
|
1,761,000 |
|
|
|
1,761,000 |
|
Total unrealized gains, net |
|
|
— |
|
|
|
— |
|
|
|
8,749,945 |
|
|
|
8,749,945 |
|
Purchases of securities/changes to securities/non-cash
conversions: |
|
|
|
|
|
|
|
|
|
|
|
|
BMP Food Service Supply Holdco, LLC (FSS) |
|
|
— |
|
|
|
— |
|
|
|
107,619 |
|
|
|
107,619 |
|
Caitec, Inc. (Caitec) |
|
|
283,170 |
|
|
|
— |
|
|
|
— |
|
|
|
283,170 |
|
FCM Industries Holdco LLC (First Coast Mulch) |
|
|
— |
|
|
|
22,623 |
|
|
|
— |
|
|
|
22,623 |
|
Filterworks |
|
|
— |
|
|
|
102,396 |
|
|
|
— |
|
|
|
102,396 |
|
GoNoodle, Inc. (GoNoodle) |
|
|
— |
|
|
|
7,139 |
|
|
|
— |
|
|
|
7,139 |
|
HDI Acquisition LLC (Hilton Displays) |
|
|
— |
|
|
|
10,646 |
|
|
|
— |
|
|
|
10,646 |
|
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
61,973 |
|
|
|
— |
|
|
|
61,973 |
|
Inter-National Electronic Alloys LLC (INEA) |
|
|
— |
|
|
|
25,392 |
|
|
|
— |
|
|
|
25,392 |
|
ITA Acquisition, LLC (ITA) |
|
|
449,086 |
|
|
|
— |
|
|
|
— |
|
|
|
449,086 |
|
Mattison Avenue Holdings LLC (Mattison) |
|
|
5,572,902 |
|
|
|
— |
|
|
|
— |
|
|
|
5,572,902 |
|
Mountain Regional Equipment Solutions (MRES) |
|
|
— |
|
|
|
2,946,000 |
|
|
|
264,545 |
|
|
|
3,210,545 |
|
Pressure Pro |
|
|
— |
|
|
|
37,637 |
|
|
|
— |
|
|
|
37,637 |
|
Seybert’s Billiards Corporation (Seybert’s) |
|
|
— |
|
|
|
1,863,507 |
|
|
|
— |
|
|
|
1,863,507 |
|
Total purchases of securities/changes to securities/non-cash
conversions |
|
|
6,305,158 |
|
|
|
5,077,313 |
|
|
|
372,164 |
|
|
|
11,754,635 |
|
Repayments and sales of securities: |
|
|
|
|
|
|
|
|
|
|
|
|
FSS |
|
|
— |
|
|
|
(34,838 |
) |
|
|
— |
|
|
|
(34,838 |
) |
Mattison |
|
|
(1,894,470 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,894,470 |
) |
Pressure Pro |
|
|
— |
|
|
|
(1,427,452 |
) |
|
|
— |
|
|
|
(1,427,452 |
) |
Tilson |
|
|
— |
|
|
|
— |
|
|
|
(397,264 |
) |
|
|
(397,264 |
) |
Total repayments and sales of securities |
|
|
(1,894,470 |
) |
|
|
(1,462,290 |
) |
|
|
(397,264 |
) |
|
|
(3,754,024 |
) |
Ending balance June 30, 2024, of Level 3 Assets |
|
$ |
16,828,665 |
|
|
$ |
40,476,548 |
|
|
$ |
28,429,514 |
|
|
$ |
85,734,727 |
|
Change in unrealized appreciation/depreciation included in earnings related to Level 3 investments still held at reporting date |
|
|
|
|
|
|
|
|
|
|
$ |
7,620,790 |
|
|