Quarterly report pursuant to Section 13 or 15(d)

Investments (Tables)

v3.23.2
Investments (Tables)
6 Months Ended
Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]  
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, 2023:

 



Investment Type

 

Market Approach EBITDA Multiple

 

 

Market Approach Liquidation Seniority

 

 

Market Approach
Revenue Multiple

 

 

Market Approach Transaction Pricing

 

 

Totals

 

Non-Control/Non-Affiliate Equity

 

$

300,000

 

 

$

 

 

$

700,000

 

 

$

200,063

 

 

$

1,200,063

 

Non-Control/Non-Affiliate Loan and Debt

 

 

6,607,700

 

 

 

2,208,779

 

 

 

 

 

 

2,250,000

 

 

 

11,066,479

 

Total Non-Control/Non-Affiliate

 

$

6,907,700

 

 

$

2,208,779

 

 

$

700,000

 

 

$

2,450,063

 

 

$

12,266,542

 

Affiliate Equity

 

$

4,232,324

 

 

$

 

 

$

3,223,984

 

 

$

10,580,000

 

 

$

18,036,308

 

Affiliate Loan and Debt

 

 

18,200,856

 

 

 

 

 

 

2,090,000

 

 

 

4,763,635

 

 

 

25,054,491

 

Total Affiliate

 

$

22,433,180

 

 

$

 

 

$

5,313,984

 

 

$

15,343,635

 

 

$

43,090,799

 

Control Equity

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Control Loan and Debt

 

 

 

 

 

4,031,735

 

 

 

 

 

 

 

 

 

4,031,735

 

Total Control

 

$

 

 

$

4,031,735

 

 

$

 

 

$

 

 

$

4,031,735

 

Total Level 3 Investments

 

$

29,340,880

 

 

$

6,240,514

 

 

$

6,013,984

 

 

$

17,793,698

 

 

$

59,389,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Range

 

5X - 7X

 

 

1X

 

 

1X - 4X

 

 

Not Applicable

 

 

 

 

Unobservable Input

 

EBITDA Multiple

 

 

Asset Value

 

 

Revenue Multiple

 

 

Transaction Price

 

 

 

 

Weighted Average

 

5.4X

 

 

1X

 

 

1.7X

 

 

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 June 30, 2023:

 

 

 

 

 

 

Fair Value Measurements at Reported Date Using

 




Description

 

June 30, 2023

 

 

Quoted Prices in Active Markets for Identical Assets
(Level 1)

 

 

Significant
Observable Inputs
(Level 2)

 

 

Other Significant
Unobservable
Inputs
(Level 3)

 

Loan investments

 

$

12,038,755

 

 

$

 

 

$

 

 

$

12,038,755

 

Debt investments

 

 

28,113,950

 

 

 

 

 

 

 

 

 

28,113,950

 

Equity investments

 

 

26,639,038

 

 

 

7,402,667

 

 

 

 

 

 

19,236,371

 

Total

 

$

66,791,743

 

 

$

7,402,667

 

 

$

 

 

$

59,389,076

 

 

The following table provides a summary of the components of Level 1, 2 and 3 Assets Measured at Fair Value at December 31, 2022:

 

 

 

 

 

 

Fair Value Measurements at Reported Date Using

 




Description

 

December 31, 2022

 

 

Quoted Prices in Active Markets for Identical Assets
(Level 1)

 

 

Significant
Observable Inputs
(Level 2)

 

 

Other Significant
Unobservable
Inputs
(Level 3)

 

Loan investments

 

$

14,578,351

 

 

$

 

 

$

 

 

$

14,578,351

 

Debt investments

 

 

19,582,616

 

 

 

 

 

 

 

 

 

19,582,616

 

Equity investments

 

 

27,343,292

 

 

 

6,407,548

 

 

 

 

 

 

20,935,744

 

Total

 

$

61,504,259

 

 

$

6,407,548

 

 

$

 

 

$

55,096,711

 

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, 2023:

 

 

Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)

 

Description

 

Loan Investments

 

 

Debt
Investments

 

 

Equity
Investments

 

 

Total

 

Ending balance December 31, 2022, of Level 3 Assets

 

$

14,578,351

 

 

$

19,582,616

 

 

$

20,935,744

 

 

$

55,096,711

 

Realized gains (losses) included in net change in net assets from
operations:

 

 

 

 

 

 

 

 

 

 

 

 

ClearView Social, Inc. (Clearview Social)

 

 

 

 

 

 

 

 

10,432

 

 

 

10,432

 

DSD Operating, LLC (DSD)

 

 

 

 

 

 

 

 

2,537,765

 

 

 

2,537,765

 

Microcision, LLC (Microcision)

 

 

 

 

 

 

 

 

58,329

 

 

 

58,329

 

SocialFlow, Inc. (Social Flow)

 

 

 

 

 

 

 

 

(4,941

)

 

 

(4,941

)

Somerset Gas Transmission Company, LLC (Somerset)

 

 

 

 

 

 

 

 

(448,717

)

 

 

(448,717

)

Total realized gains, net

 

 

 

 

 

 

 

 

2,152,868

 

 

 

2,152,868

 

Unrealized gains (losses) included in net change in net assets from
operations:

 

 

 

 

 

 

 

 

 

 

 

 

DSD

 

 

 

 

 

 

 

 

(886,698

)

 

 

(886,698

)

Open Exchange, Inc. (Open Exchange)

 

 

 

 

 

 

 

 

(701,940

)

 

 

(701,940

)

Somerset

 

 

 

 

 

 

 

 

594,097

 

 

 

594,097

 

Total unrealized gains (losses)

 

 

 

 

 

 

 

 

(994,541

)

 

 

(994,541

)

Purchases of securities/changes to securities/non-cash
conversions:

 

 

 

 

 

 

 

 

 

 

 

 

Caitec, Inc. (Caitec)

 

 

36,916

 

 

 

 

 

 

 

 

 

36,916

 

DSD

 

 

31,652

 

 

 

 

 

 

 

 

 

31,652

 

Filterworks Acquisition USA, LLC (Filterworks)

 

 

 

 

 

147,638

 

 

 

 

 

 

147,638

 

BMP Food Service Supply Holdco, LLC (FSS)

 

 

 

 

 

2,320,000

 

 

 

 

 

 

2,320,000

 

GoNoodle, Inc. (GoNoodle)

 

 

 

 

 

7,067

 

 

 

 

 

 

7,067

 

HDI Acquisition LLC (Hilton Displays)

 

 

 

 

 

11,868

 

 

 

 

 

 

11,868

 

Inter-National Electronic Alloys LLC (INEA)

 

 

 

 

 

3,304,154

 

 

 

1,011,765

 

 

 

4,315,919

 

ITA Acquisition, LLC (ITA)

 

 

495,528

 

 

 

 

 

 

 

 

 

495,528

 

Mattison Avenue Holdings LLC (Mattison)

 

 

18,716

 

 

 

 

 

 

 

 

 

18,716

 

Pressure Pro, Inc. (Pressure Pro)

 

 

 

 

 

3,013,635

 

 

 

30,000

 

 

 

3,043,635

 

Seybert’s Billiards Corporation (Seybert’s)

 

 

 

 

 

62,019

 

 

 

 

 

 

62,019

 

SciAps, Inc. (Sciaps)

 

 

 

 

 

5,000

 

 

 

 

 

 

5,000

 

Social Flow

 

 

 

 

 

 

 

 

4,941

 

 

 

4,941

 

BMP Swanson Holdco, LLC (Swanson)

 

 

49,026

 

 

 

 

 

 

 

 

 

49,026

 

Tilson Technology Management, Inc. (Tilson)

 

 

 

 

 

 

 

 

250,000

 

 

 

250,000

 

Total purchases of securities/changes to securities/non-cash
   conversions

 

 

631,838

 

 

 

8,871,381

 

 

 

1,296,706

 

 

 

10,799,925

 

Repayments and sales of securities:

 

 

 

 

 

 

 

 

 

 

 

 

Clearview Social

 

 

 

 

 

 

 

 

(10,432

)

 

 

(10,432

)

DSD

 

 

(3,171,434

)

 

 

 

 

 

(3,605,265

)

 

 

(6,776,699

)

FSS

 

 

 

 

 

(40,047

)

 

 

(210,000

)

 

 

(250,047

)

Hilton Displays

 

 

 

 

 

(300,000

)

 

 

 

 

 

(300,000

)

Microcision

 

 

 

 

 

 

 

 

(58,329

)

 

 

(58,329

)

Somerset

 

 

 

 

 

 

 

 

(270,380

)

 

 

(270,380

)

Total repayments and sales of securities

 

 

(3,171,434

)

 

 

(340,047

)

 

 

(4,154,406

)

 

 

(7,665,887

)

Ending balance June 30, 2023, of Level 3 Assets

 

$

12,038,755

 

 

$

28,113,950

 

 

$

19,236,371

 

 

$

59,389,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized appreciation/depreciation included in earnings
   related to Level 3 investments still held at reporting date

 

 

 

 

 

 

 

 

 

 

$

(701,940

)

 

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, 2022:

 

 

 

Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)

 


Description

 

Loan Investments

 

 

Debt
Investments

 

 

Equity
Investments

 

 

Total

 

Ending Balance December 31, 2021, of Level 3 Assets

 

$

15,503,404

 

 

$

14,030,078

 

 

$

20,633,935

 

 

$

50,167,417

 

Realized gains (losses) included in net change in net assets from
operations:

 

 

 

 

 

 

 

 

 

 

 

 

ClearView Social, Inc. (Clearview Social)

 

 

 

 

 

 

 

 

38,881

 

 

 

38,881

 

Microcision, LLC (Microcision)

 

 

 

 

 

 

 

 

190,000

 

 

 

190,000

 

New Monarch Machine Tool, Inc. (New Monarch)

 

 

 

 

 

 

 

 

(22,841

)

 

 

(22,841

)

SocialFlow, Inc. (Social Flow)

 

 

 

 

 

 

 

 

(1,481,498

)

 

 

(1,481,498

)

Total realized (losses), net

 

 

 

 

 

 

 

 

(1,275,458

)

 

 

(1,275,458

)

Unrealized gains included in net change in net assets from
operations:

 

 

 

 

 

 

 

 

 

 

 

 

Microcision

 

 

 

 

 

 

 

 

25,000

 

 

 

25,000

 

New Monarch

 

 

 

 

 

 

 

 

22,841

 

 

 

22,841

 

Social Flow

 

 

 

 

 

 

 

 

1,628,000

 

 

 

1,628,000

 

Total unrealized gains

 

 

 

 

 

 

 

 

1,675,841

 

 

 

1,675,841

 

Purchases of securities/changes to securities/non-cash
conversions:

 

 

 

 

 

 

 

 

 

 

 

 

Caitec, Inc. (Caitec)

 

 

36,178

 

 

 

 

 

 

 

 

 

36,178

 

DSD Operating, LLC (DSD)

 

 

348,748

 

 

 

 

 

 

 

 

 

348,748

 

Filterworks Acquisition USA, LLC (Filterworks)

 

 

 

 

 

107,559

 

 

 

 

 

 

107,559

 

GoNoodle, Inc. (GoNoodle)

 

 

 

 

 

7,110

 

 

 

 

 

 

7,110

 

HDI Acquisition LLC (Hilton Displays)

 

 

 

 

 

13,117

 

 

 

 

 

 

13,117

 

ITA Acquisition, LLC (ITA)

 

 

34,701

 

 

 

 

 

 

223,810

 

 

 

258,511

 

Mattison Avenue Holdings LLC (Mattison)

 

 

18,341

 

 

 

 

 

 

 

 

 

18,341

 

Seybert’s Billiards Corporation (Seybert’s)

 

 

 

 

 

2,248,118

 

 

 

 

 

 

2,248,118

 

SciAps, Inc. (Sciaps)

 

 

 

 

 

7,500

 

 

 

 

 

 

7,500

 

Total purchases of securities/changes to securities/non-cash
   conversions

 

 

437,968

 

 

 

2,383,404

 

 

 

223,810

 

 

 

3,045,182

 

Repayments and sale of securities:

 

 

 

 

 

 

 

 

 

 

 

 

Clearview Social

 

 

 

 

 

 

 

 

(38,881

)

 

 

(38,881

)

GoNoodle

 

 

 

 

 

(90,175

)

 

 

 

 

 

(90,175

)

Microcision

 

 

 

 

 

 

 

 

(300,000

)

 

 

(300,000

)

Social Flow

 

 

 

 

 

 

 

 

(268,502

)

 

 

(268,502

)

Total repayments and sale of securities

 

 

 

 

 

(90,175

)

 

 

(607,383

)

 

 

(697,558

)

Ending Balance June 30, 2022, of Level 3 Assets

 

$

15,941,372

 

 

$

16,323,307

 

 

$

20,650,745

 

 

$

52,915,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized appreciation/depreciation included in earnings
   related to Level 3 investments still held at reporting date

 

 

 

 

 

 

 

 

 

 

$