v3.22.2.2
INVESTMENTS (Tables)
 12 Months Ended
Jun. 30, 2022
INVESTMENTS [Abstract]  
Composition of Investments at Fair Value
The following table summarizes the composition of our equity method investments with fair value option election and other equity securities at fair value as of June 30, 2022 and 2021 (successor basis):

   
Fair Value
      Fair Value  
Asset Type
  
June 30, 2022
       June 30, 2021  
Publicly Traded Companies
  
$
-
     $ 169,200  
Non Traded Companies
    
11,517,226
       29,426,441  
Non Traded Company (Equity method investment with fair value option election)
    
-
       2,867,911  
GP Interests     18,333,000       -  
LP Interests
    
330,000
       288,494  
LP Interests (Equity method investment with fair value option election)
    
27,363,840
       37,722,483  
Investment Trust
    
49,178
       34,714  
Total
  
$
57,593,244
     $
70,509,243  
Fair Value Measurements of Investments
The following table presents fair value measurements of our investments as of June 30, 2022 and 2021, according to the fair value hierarchy (successor basis):

               As of June 30,2022
Asset Type
  
Total
    
Level I
    
Level II
    
Level III
  
Non Traded Companies
   $
11,517,226
     $
-
     $
-
     $
11,517,226
  
GP Interests     18,333,000       -       -       18,333,000  
LP Interests
    
27,693,840
      
-
      
-
      
27,693,840
  
Investment Trust
    
49,178
      
-
      
-
      
49,178
  
Total
  
$
57,593,244
    
$
-
    
$
-
    
$
57,593,244
  

                As of June 30,2021
Asset Type
  
Total
    
Level I
    
Level II
    
Level III
  
Publicly Traded Companies
  
$
169,200
    
$
169,200
    
$
-
    
$
-
  
Non Traded Companies
    
32,294,352
      
-
      
-
      
32,294,352
  
LP Interests
    
38,010,977
      
-
      
-
      
38,010,977
  
Investment Trust
    
34,714
      
-
      
-
      
34,714
  
Total
  
$
70,509,243
    
$
169,200
    
$
-
    
$
70,340,043
  
Reconciliation of the Beginning and Ending Balances for Investments Measured at Fair value on a Recurring Basis
The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the year ended June 30, 2022 (successor basis):

Balance at July 1, 2021
  
$
70,340,043
  
Purchases of investments
    
21,789,690
  
Transfers to Level I
    
(230,160
)
Fair value adjustment on FSP Satellite Corp. units owned prior to consolidation (Note 1)
     (3,106,018 )
Proceeds from sales, net
    
(33,218,158
)
Return of capital distributions
    
(11,807,238
)
Net realized gains
    
7,277,446
Net unrealized gains
    
6,547,639
  
Ending balance at June 30, 2022
  
$
57,593,244
  

The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the six months ended June 30, 2021 (successor basis):

Balance at December 31, 2020
  
$
68,877,889
  
Purchases of investments
    
8,830,765
  
Transfers to Level I
    
(229,879
)
Proceeds from sales, net
    
(1,922,780
)
Return of capital distributions
    
(6,001,052
)
Net realized losses
    
(160,108
)
Net unrealized gains
    
945,208
  
Ending balance at June 30, 2021
  
$
70,340,043
  

The following is a reconciliation of the beginning and ending balances for investments measured at fair value on a recurring basis using significant unobservable inputs (Level III of the fair value hierarchy) for the six months ended December 31, 2020 (predecessor basis):

Balance at July 1, 2020
  
$
86,460,491
  
Purchases of investments
    
13,448,477
  
Transfers to Level I     (1,900,470 )
Consolidation of the Operating Partnership
    (8,027,584 )
Proceeds from sales, net
    
(1,011,748
)
Return of capital
    
(11,486,835
)
Net realized gains
    
30,050
  
Net unrealized losses
    
(8,634,492
)
Ending balance at December 31, 2020
  
$
68,877,889
  
Significant Unobservable Inputs Used in Fair Value Measurements
The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2022 (successor basis):

Asset Type
  
Fair Value
  
Primary Valuation
Techniques
  
Unobservable Inputs Used
  
Range
     Weighted Average
  
                         
Non Traded Companies
   $
1,011,081
  
Estimated Liquidation Value
  
Sponsor provided value
            
                      
Liquidity discount
    
25.0% - 75.0%

   
25.0%

Non Traded Companies
    
10,506,145
  
Market Activity
  
Secondary market industry publication
                
                      
Contracted purchase of security
                
                               
GP Interests     18,333,000   Market Activity   Contracted purchase price                
                               
LP Interests
    
21,550,730
  
Direct Capitalization Method
  
Capitalization rate
    
4.0% - 5.0%

   
4.2%

                      
Liquidity discount
    
15.0%

       
LP Interests
    
5,806,290
  
Discounted Cash Flow
  
Discount rate
    
6.3% - 9.0%

   
8.6%

LP Interests
    
6,820
  
Estimated Liquidation Value
  
Sponsor provided value
                
                      
Liquidity discount
    
12%

       
LP Interest     330,000   Market Activity         Secondary market industry publication                
                               
Investment Trust
    
49,178
  
Direct Capitalization Method
  
Capitalization rate
    
5.0%

       
                      
Liquidity discount
    
15.0%

       
   
$
57,593,244
                        

The following table shows quantitative information about significant unobservable inputs related to the Level III fair value measurements used at June 30, 2021 (successor basis):

Asset Type
  
Fair Value
  
Primary Valuation
Techniques
  
Unobservable Inputs Used
  
Range
    
Weighted Average
  
                         
Non Traded Company
  
$
2,867,911
  
Direct Capitalization Method
  
Capitalization rate
    
7.9%
    

 
                      
Liquidity discount
    
32.0%
    

 
Non Traded Companies
    
66,337
  
Estimated Liquidation Value
  
Sponsor provided value
              
                      
Liquidity discount
    
2.0% - 67.0%
      
53.6%

                 Bankruptcy filing
                
Non Traded Companies
    
29,360,104
  
Market Activity
  
Secondary market industry publication
                
                 Underlying property sales contract                
                 Acquisition cost                
                               
LP Interests
    
19,717,495
  
Direct Capitalization Method
  
Capitalization rate
    
3.5% - 7.5%
      
5.8%

                      
Liquidity discount
    
20.0% - 33.0%
      
20.9%

LP Interests
    
11,448,000
  
Discounted Cash Flow
  
Discount rate
    
9.0% - 20.0%
      
13.2%

                      
Discount term (months)
    
24
          
LP Interests
    
6,845,482
  
Estimated Liquidation Value
  
Sponsor provided value
                
                      
Underlying property sales contract
                
                      
Liquidity discount
    
5.0% - 46.19%
      
16.1%

                      
Appraisal
                
                               
Investment Trust
    
34,714
  
Direct Capitalization Method
  
Capitalization rate
     6.0%          
                  Liquidity discount     33.0%          
   
$
70,340,043
                        
Aggregated Summarized Financial Information of Investees The summarized financial information of Dimension 28, LLP and aggregated summarized financial information of all equity method investees is as follows:

    Dimension 28, LLP
   
All Equity Method
Investee Aggregated
  
Total Assets
   $ 18,684,443     $
95,185,176
  
Total Liabilities
   $ 13,788,779     $
73,988,432
  
Total Equities
   $ 4,895,664     $
21,196,744
  
Total Revenues
   $ 3,075,016     $
13,139,175
  
Total Expenses
   $ 3,747,794     $
13,013,280
  
Total Net Income (Loss)
   $ (672,778 )   $
125,895