Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Differences Reclassified for Tax Purposes

The following differences were reclassified for tax purposes for the years ended December 31, 2023 and December 31, 20221:

 

 

2023

 

 

2022

 

Increase (decrease) in capital in excess of par value

 

$

4,336,903

 

 

$

(215,542

)

(Decrease) increase in total distributable earnings

 

 

(4,336,903

)

 

 

215,542

 

Schedule of Reconciliation of Net Increase in Net Assets Resulting From Operations to Taxable Income

The following table reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2023 and December 31, 2022:

 

 

2023

 

 

2022

 

Net increase (decrease) in net assets resulting from operations

 

$

6,526,650

 

 

$

(881,849

)

Net change in unrealized appreciation/depreciation on investments

 

 

(2,867,520

)

 

 

6,017,752

 

Net change in deferred tax asset/liability

 

 

(77,734

)

 

 

44,862

 

GAAP versus tax basis consolidation of subsidiaries

 

 

(1,332,687

)

 

 

(863,702

)

Other permanent book income and tax income differences

 

 

1,348,624

 

 

 

170,680

 

Temporary book income and tax income differences

 

 

(82,198

)

 

 

(803,001

)

Taxable income2

 

$

3,515,135

 

 

$

3,684,742

 

Schedule of Tax Character of Distributions Paid and Deemed Paid The tax character of distributions paid and deemed paid during the years ended December 31, 2023 and December 31, 2022 was as follows:

 

 

2023

 

 

2022

 

Ordinary income

 

$

3,432,757

 

 

$

2,142,247

 

Long-term capital gains

 

 

 

 

 

 

Return of Capital

 

 

 

 

 

 

Total

 

$

3,432,757

 

 

$

2,142,247

 

Schedule of Components of Distributable Earnings/(Accumulated Losses) and Reconciliation to Accumulated Earnings/(Deficit)

The tax basis components of distributable earnings (accumulated losses) and reconciliation to accumulated earnings (deficit) on a book basis for the years ended December 31, 2023 and December 31, 2022 were as follows:

 

 

2023

 

 

2022

 

Undistributed ordinary income – tax basis

 

$

332,806

 

 

$

250,428

 

Capital loss carry forwards

 

 

(1,546,597

)

 

 

 

Unrealized appreciation on investments

 

 

9,906,212

 

 

 

5,993,782

 

GAAP vs tax basis consolidation of subsidiaries

 

 

 

 

 

863,702

 

Other temporary differences

 

 

(2,376,665

)

 

 

1,389,575

 

Total accumulated earnings – book basis

 

$

6,315,756

 

 

$

8,497,487

 

Schedule of Net Deferred Tax Asset

The tax effect of the major temporary differences and carryforwards that give rise to the Corporation’s net deferred tax asset at December 31, 2023 and 2022 are approximately as follows:

 

 

 

2023

 

 

2022

 

Investments

 

$

(644,497

)

 

$

(234,730

)

NOL & tax credit carryforwards

 

 

683,676

 

 

 

262,890

 

Deferred tax asset, net

 

$

39,179

 

 

$

28,160

 

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) reported in the consolidated statements of operations are as follows for the years ended December 31:

 

 

 

2023

 

 

2022

 

 

2021

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

609,056

 

 

$

173,235

 

 

$

85,829

 

State

 

 

58,320

 

 

 

(2,555

)

 

 

14,835

 

 

 

667,376

 

 

 

170,680

 

 

 

100,664

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(13,797

)

 

 

92,304

 

 

 

(279,167

)

State

 

 

2,778

 

 

 

60,538

 

 

 

(22,977

)

 

 

(11,019

)

 

 

152,842

 

 

 

(302,144

)

Total

 

$

656,357

 

 

$

323,522

 

 

$

(201,480

)

Schedule of Reconciliation of the Expense (Benefit) From Income Taxes at the Federal Statutory Rate

A reconciliation of the expense (benefit) from income taxes at the federal statutory rate to the expense reported is as follows:

 

 

2023

 

 

2022

 

 

2021

 

Net investment income (loss), realized gain (loss) and unrealized gain (loss) before income taxes

 

$

7,183,007

 

 

$

(558,327

)

 

$

15,595,948

 

Expected tax expense (benefit) at statutory rate

 

 

1,508,431

 

 

 

(117,249

)

 

 

3,275,149

 

State - net of federal effect

 

 

48,267

 

 

 

45,807

 

 

 

(8,142

)

Pass-through expense (benefit) from portfolio investment

 

 

487

 

 

 

721

 

 

 

(46,210

)

Valuation allowance

 

 

131,338

 

 

 

 

 

 

 

Tax benefit of RIC status

 

 

(1,067,238

)

 

 

400,329

 

 

 

(3,426,735

)

RIC excise tax expense

 

 

52,800

 

 

 

 

 

 

 

Other

 

 

(17,728

)

 

 

(6,086

)

 

 

4,458

 

Total

 

$

656,357

 

 

$

323,522

 

 

$

(201,480

)