| 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, 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 |
|
$ |
4,100,000 |
|
|
$ |
— |
|
|
$ |
1,000,000 |
|
|
$ |
100,038 |
|
|
$ |
5,200,038 |
|
Non-Control/Non-Affiliate Loan and Debt |
|
|
9,817,308 |
|
|
|
1,461,992 |
|
|
|
— |
|
|
|
— |
|
|
|
11,279,300 |
|
Total Non-Control/Non-Affiliate |
|
$ |
13,917,308 |
|
|
$ |
1,461,992 |
|
|
$ |
1,000,000 |
|
|
$ |
100,038 |
|
|
$ |
16,479,338 |
|
Affiliate Equity |
|
$ |
5,265,245 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,300,000 |
|
|
$ |
6,565,245 |
|
Affiliate Loan and Debt |
|
|
26,954,690 |
|
|
|
— |
|
|
|
— |
|
|
|
5,101,633 |
|
|
|
32,056,323 |
|
Total Affiliate |
|
$ |
32,219,935 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,401,633 |
|
|
$ |
38,621,568 |
|
Control Equity |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Control Loan and Debt |
|
|
— |
|
|
|
1,400,000 |
|
|
|
— |
|
|
|
— |
|
|
|
1,400,000 |
|
Total Control |
|
$ |
— |
|
|
$ |
1,400,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,400,000 |
|
Total Level 3 Investments |
|
$ |
46,137,243 |
|
|
$ |
2,861,992 |
|
|
$ |
1,000,000 |
|
|
$ |
6,501,671 |
|
|
$ |
56,500,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|
4X - 18.2X |
|
|
1X |
|
|
3.4X |
|
|
Not Applicable |
|
|
|
|
Unobservable Input |
|
EBITDA Multiple |
|
|
Asset Value |
|
|
Revenue Multiple |
|
|
Transaction Price |
|
|
|
|
Weighted Average |
|
6.5X |
|
|
1X |
|
|
3.4X |
|
|
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 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 six months ended June 30, 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: |
|
|
|
|
|
|
|
|
|
|
|
|
Applied Image, Inc. (Applied Image) |
|
|
— |
|
|
|
— |
|
|
|
958,948 |
|
|
|
958,948 |
|
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 |
|
|
— |
|
|
|
— |
|
|
|
2,034,519 |
|
|
|
2,034,519 |
|
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 |
|
BMP Swanson Holdco, LLC (Swanson) |
|
|
(1,787,551 |
) |
|
|
— |
|
|
|
(750,000 |
) |
|
|
(2,537,551 |
) |
Caitec, Inc. (Caitec) |
|
|
— |
|
|
|
— |
|
|
|
50,000 |
|
|
|
50,000 |
|
Feature Healthcare, LLC (4 Seasons) |
|
|
— |
|
|
|
200,000 |
|
|
|
— |
|
|
|
200,000 |
|
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
— |
|
|
|
400,000 |
|
|
|
400,000 |
|
Inter-National Electronic Alloys LLC (EFINEA) |
|
|
— |
|
|
|
— |
|
|
|
400,000 |
|
|
|
400,000 |
|
Mountain Regional Equipment Solutions (MRES) |
|
|
— |
|
|
|
(403,000 |
) |
|
|
— |
|
|
|
(403,000 |
) |
Open Exchange, Inc. (Open Exchange) |
|
|
— |
|
|
|
— |
|
|
|
300,000 |
|
|
|
300,000 |
|
Seybert’s |
|
|
— |
|
|
|
— |
|
|
|
(1,051,659 |
) |
|
|
(1,051,659 |
) |
SQF LLC (Verta) |
|
|
— |
|
|
|
— |
|
|
|
1,000,000 |
|
|
|
1,000,000 |
|
Total unrealized losses, net |
|
|
(1,787,551 |
) |
|
|
(1,226,457 |
) |
|
|
636,341 |
|
|
|
(2,377,667 |
) |
Purchases of securities/changes to securities/non-cash
conversions: |
|
|
|
|
|
|
|
|
|
|
|
|
4 Seasons |
|
|
— |
|
|
|
4,516,250 |
|
|
|
— |
|
|
|
4,516,250 |
|
AME Holdco, LLC (AME) |
|
|
— |
|
|
|
3,000,000 |
|
|
|
1,000,000 |
|
|
|
4,000,000 |
|
Autotality |
|
|
— |
|
|
|
123,886 |
|
|
|
— |
|
|
|
123,886 |
|
Bauer |
|
|
— |
|
|
|
1,200 |
|
|
|
— |
|
|
|
1,200 |
|
BlackJet Direct Marketing, LLC (BlackJet) |
|
|
— |
|
|
|
11,361 |
|
|
|
— |
|
|
|
11,361 |
|
BMP Food Service Supply Holdco, LLC (FSS) |
|
|
— |
|
|
|
400,000 |
|
|
|
— |
|
|
|
400,000 |
|
Caitec |
|
|
— |
|
|
|
50,994 |
|
|
|
50,000 |
|
|
|
100,994 |
|
EFINEA |
|
|
— |
|
|
|
8,480 |
|
|
|
— |
|
|
|
8,480 |
|
FCM Industries Holdco LLC (First Coast Mulch) |
|
|
— |
|
|
|
27,538 |
|
|
|
— |
|
|
|
27,538 |
|
GoNoodle, Inc. (GoNoodle) |
|
|
— |
|
|
|
7,283 |
|
|
|
— |
|
|
|
7,283 |
|
Highland All About People Holdings, Inc. (All About People) |
|
|
— |
|
|
|
66,818 |
|
|
|
— |
|
|
|
66,818 |
|
Mobile RN Holdings LLC (Mobile IV Nurses) |
|
|
— |
|
|
|
12,746 |
|
|
|
— |
|
|
|
12,746 |
|
MRES |
|
|
— |
|
|
|
680,924 |
|
|
|
— |
|
|
|
680,924 |
|
Swanson |
|
|
32,964 |
|
|
|
— |
|
|
|
— |
|
|
|
32,964 |
|
Termite Guy Corporation (Termite Guy) |
|
|
— |
|
|
|
2,101,633 |
|
|
|
300,000 |
|
|
|
2,401,633 |
|
Total purchases of securities/changes to securities/non-cash
conversions |
|
|
32,964 |
|
|
|
11,009,113 |
|
|
|
1,350,000 |
|
|
|
12,392,077 |
|
Repayments and sales of securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Applied Image |
|
|
— |
|
|
|
(1,750,000 |
) |
|
|
(958,948 |
) |
|
|
(2,708,948 |
) |
Carolina Skiff |
|
|
— |
|
|
|
— |
|
|
|
(3,112 |
) |
|
|
(3,112 |
) |
Seybert's |
|
|
— |
|
|
|
— |
|
|
|
(1,316,459 |
) |
|
|
(1,316,459 |
) |
Total repayments and sales of securities |
|
|
— |
|
|
|
(1,750,000 |
) |
|
|
(2,278,519 |
) |
|
|
(4,028,519 |
) |
Ending balance June 30, 2026, of Level 3 Assets |
|
$ |
1,400,000 |
|
|
$ |
43,335,623 |
|
|
$ |
11,765,283 |
|
|
$ |
56,500,906 |
|
Change in unrealized appreciation/depreciation included in earnings related to Level 3 investments still held at reporting date |
|
|
|
|
|
|
|
|
|
|
$ |
(1,326,008 |
) |
The following table provides a summary of changes in portfolio investment 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 |
) |
|