| 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, 2026:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type
|
|
Market Approach EBITDA Multiple |
|
|
Market Approach Liquidation Seniority |
|
|
Market Approach
Revenue Multiple |
|
|
Market Approach Transaction Pricing |
|
|
Totals |
|
Non-Control/Non-Affiliate Equity |
|
$ |
3,000,000 |
|
|
$ |
— |
|
|
$ |
700,000 |
|
|
$ |
150,038 |
|
|
$ |
3,850,038 |
|
Non-Control/Non-Affiliate Loan and Debt |
|
|
5,075,356 |
|
|
|
1,458,346 |
|
|
|
— |
|
|
|
— |
|
|
|
6,533,702 |
|
Total Non-Control/Non-Affiliate |
|
$ |
8,075,356 |
|
|
$ |
1,458,346 |
|
|
$ |
700,000 |
|
|
$ |
150,038 |
|
|
$ |
10,383,740 |
|
Affiliate Equity |
|
$ |
5,365,245 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,000,000 |
|
|
$ |
6,365,245 |
|
Affiliate Loan and Debt |
|
|
30,394,079 |
|
|
|
— |
|
|
|
— |
|
|
|
3,000,000 |
|
|
|
33,394,079 |
|
Total Affiliate |
|
$ |
35,759,324 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,000,000 |
|
|
$ |
39,759,324 |
|
Control Equity |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Control Loan and Debt |
|
|
— |
|
|
|
1,400,000 |
|
|
|
— |
|
|
|
— |
|
|
|
1,400,000 |
|
Total Control |
|
$ |
— |
|
|
$ |
1,400,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,400,000 |
|
Total Level 3 Investments |
|
$ |
43,834,680 |
|
|
$ |
2,858,346 |
|
|
$ |
700,000 |
|
|
$ |
4,150,038 |
|
|
$ |
51,543,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|
4X - 14.7X |
|
|
1X |
|
|
3.85X |
|
|
Not Applicable |
|
|
|
|
Unobservable Input |
|
EBITDA Multiple |
|
|
Asset Value |
|
|
Revenue Multiple |
|
|
Transaction Price |
|
|
|
|
Weighted Average |
|
6.1X |
|
|
1X |
|
|
3.85X |
|
|
Not Applicable |
|
|
|
|
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 December 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 |
|
$ |
3,000,000 |
|
|
$ |
— |
|
|
$ |
700,000 |
|
|
$ |
100,038 |
|
|
$ |
3,800,038 |
|
Non-Control/Non-Affiliate Loan and Debt |
|
|
5,050,064 |
|
|
|
1,454,709 |
|
|
|
— |
|
|
|
— |
|
|
|
6,504,773 |
|
Total Non-Control/Non-Affiliate |
|
$ |
8,050,064 |
|
|
$ |
1,454,709 |
|
|
$ |
700,000 |
|
|
$ |
100,038 |
|
|
$ |
10,304,811 |
|
Affiliate Equity |
|
$ |
4,915,245 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,307,659 |
|
|
$ |
6,222,904 |
|
Affiliate Loan and Debt |
|
|
27,314,181 |
|
|
|
— |
|
|
|
— |
|
|
|
3,238,600 |
|
|
|
30,552,781 |
|
Total Affiliate |
|
$ |
32,229,426 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,546,259 |
|
|
$ |
36,775,685 |
|
Control Equity |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Control Loan and Debt |
|
|
— |
|
|
|
1,400,000 |
|
|
|
— |
|
|
|
— |
|
|
|
1,400,000 |
|
Total Control |
|
$ |
— |
|
|
$ |
1,400,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,400,000 |
|
Total Level 3 Investments |
|
$ |
40,279,490 |
|
|
$ |
2,854,709 |
|
|
$ |
700,000 |
|
|
$ |
4,646,297 |
|
|
$ |
48,480,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|
4X - 14.7X |
|
|
1X |
|
|
3.9X |
|
|
Not Applicable |
|
|
|
|
Unobservable Input |
|
EBITDA Multiple |
|
|
Asset Value |
|
|
Revenue Multiple |
|
|
Transaction Price |
|
|
|
|
Weighted Average |
|
6.1X |
|
|
1X |
|
|
3.9X |
|
|
Not Applicable |
|
|
|
|
|
| Summary of the Components of Portfolio Investment Assets Measured at Fair Value |
The following table provides a summary of the components of Level 1, 2 and 3 portfolio investment assets measured at fair value at March 31, 2026:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at Reported Date Using |
|
Description
|
|
March 31, 2026 |
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
|
Significant
Observable Inputs
(Level 2) |
|
|
Other Significant
Unobservable
Inputs
(Level 3) |
|
Loan investments |
|
$ |
3,187,551 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,187,551 |
|
Debt investments |
|
|
38,140,230 |
|
|
|
— |
|
|
|
— |
|
|
|
38,140,230 |
|
Equity investments |
|
|
10,215,283 |
|
|
|
— |
|
|
|
— |
|
|
|
10,215,283 |
|
Total |
|
$ |
51,543,064 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
51,543,064 |
|
The following table provides a summary of the components of Level 1, 2 and 3 portfolio investment assets measured at fair value at December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at Reported Date Using |
|
Description
|
|
December 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 |
|
$ |
3,154,587 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,154,587 |
|
Debt investments |
|
|
35,302,967 |
|
|
|
— |
|
|
|
— |
|
|
|
35,302,967 |
|
Equity investments |
|
|
10,022,942 |
|
|
|
— |
|
|
|
— |
|
|
|
10,022,942 |
|
Total |
|
$ |
48,480,496 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
48,480,496 |
|
|
| Summary of Changes in Portfolio Investment Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) |
The following table provides a summary of changes in portfolio investment assets measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2026:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3) |
|
Description |
|
Loan Investments |
|
|
Debt
Investments |
|
|
Equity
Investments |
|
|
Total |
|
Ending balance December 31, 2025, of Level 3 Assets |
|
$ |
3,154,587 |
|
|
$ |
35,302,967 |
|
|
$ |
10,022,942 |
|
|
$ |
48,480,496 |
|
Realized gains included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Carolina Skiff LLC (Carolina Skiff) |
|
|
— |
|
|
|
— |
|
|
|
3,112 |
|
|
|
3,112 |
|
Seybert’s Billiards Corporation (Seybert’s) |
|
|
— |
|
|
|
— |
|
|
|
1,072,459 |
|
|
|
1,072,459 |
|
Total realized gains, net |
|
|
— |
|
|
|
— |
|
|
|
1,075,571 |
|
|
|
1,075,571 |
|
Unrealized (losses) gains included in net change in net assets
from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Autotality |
|
|
— |
|
|
|
(1,023,457 |
) |
|
|
— |
|
|
|
(1,023,457 |
) |
Bauer Sheet Metal and Fabricating, LLC (Bauer) |
|
|
— |
|
|
|
— |
|
|
|
288,000 |
|
|
|
288,000 |
|
BlackJet Direct Marketing, LLC (BlackJet) |
|
|
— |
|
|
|
— |
|
|
|
(250,000 |
) |
|
|
(250,000 |
) |
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
— |
|
|
|
400,000 |
|
|
|
400,000 |
|
Mountain Regional Equipment Solutions (MRES) |
|
|
— |
|
|
|
(403,000 |
) |
|
|
— |
|
|
|
(403,000 |
) |
Seybert’s |
|
|
— |
|
|
|
— |
|
|
|
(1,051,659 |
) |
|
|
(1,051,659 |
) |
Total unrealized losses, net |
|
|
— |
|
|
|
(1,426,457 |
) |
|
|
(613,659 |
) |
|
|
(2,040,116 |
) |
Purchases of securities/changes to securities/non-cash
conversions: |
|
|
|
|
|
|
|
|
|
|
|
|
AME Holdco, LLC (AME) |
|
|
— |
|
|
|
3,000,000 |
|
|
|
1,000,000 |
|
|
|
4,000,000 |
|
Autotality |
|
|
— |
|
|
|
123,886 |
|
|
|
— |
|
|
|
123,886 |
|
Bauer |
|
|
— |
|
|
|
600 |
|
|
|
— |
|
|
|
600 |
|
BlackJet |
|
|
— |
|
|
|
5,642 |
|
|
|
— |
|
|
|
5,642 |
|
BMP Food Service Supply Holdco, LLC (FSS) |
|
|
— |
|
|
|
400,000 |
|
|
|
— |
|
|
|
400,000 |
|
BMP Swanson Holdco, LLC (Swanson) |
|
|
32,964 |
|
|
|
— |
|
|
|
— |
|
|
|
32,964 |
|
Caitec, Inc. (Caitec) |
|
|
— |
|
|
|
25,292 |
|
|
|
50,000 |
|
|
|
75,292 |
|
FCM Industries Holdco LLC (First Coast Mulch) |
|
|
— |
|
|
|
13,521 |
|
|
|
— |
|
|
|
13,521 |
|
GoNoodle, Inc. (GoNoodle) |
|
|
— |
|
|
|
3,637 |
|
|
|
— |
|
|
|
3,637 |
|
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
33,058 |
|
|
|
— |
|
|
|
33,058 |
|
Mobile RN Holdings LLC (Mobile IV Nurses) |
|
|
— |
|
|
|
6,330 |
|
|
|
— |
|
|
|
6,330 |
|
MRES |
|
|
— |
|
|
|
680,924 |
|
|
|
— |
|
|
|
680,924 |
|
Total purchases of securities/changes to securities/non-cash
conversions |
|
|
32,964 |
|
|
|
4,292,890 |
|
|
|
1,050,000 |
|
|
|
5,375,854 |
|
Repayments and sales of securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Applied Image, Inc. (Applied Image) |
|
|
— |
|
|
|
(29,170 |
) |
|
|
— |
|
|
|
(29,170 |
) |
Carolina Skiff |
|
|
— |
|
|
|
— |
|
|
|
(3,112 |
) |
|
|
(3,112 |
) |
Seybert's |
|
|
— |
|
|
|
— |
|
|
|
(1,316,459 |
) |
|
|
(1,316,459 |
) |
Total repayments and sales of securities |
|
|
— |
|
|
|
(29,170 |
) |
|
|
(1,319,571 |
) |
|
|
(1,348,741 |
) |
Ending balance March 31, 2026, of Level 3 Assets |
|
$ |
3,187,551 |
|
|
$ |
38,140,230 |
|
|
$ |
10,215,283 |
|
|
$ |
51,543,064 |
|
Change in unrealized appreciation/depreciation included in earnings related to Level 3 investments still held at reporting date |
|
|
|
|
|
|
|
|
|
|
$ |
(988,457 |
) |
The following table provides a summary of changes in portfolio investment 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 |
) |
|