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INCOME TAXES
 6 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
While our fiscal year end for financial reporting purposes is June 30 of each year, our taxable year end is December 31 of each year. The information presented in this footnote is based on our taxable year end for each period presented, unless otherwise specified.
For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or combination thereof.
The tax character of distributions paid to the Company's shareholders during the taxable years ended December 31, 2025 and 2024 were as follows:
Taxable Year Ended
 December 31, 2025December 31, 2024
Ordinary income$3,487,407 $2,046,754 
Return of capital— 642,930 
Total distributions paid to stockholders$3,487,407 
(1)
$2,689,684 
(2)
(1)    For the taxable year ended December 31, 2025, $38,250 of the 2024 declared distributions are allocable to 2025 for federal income tax purposes and are reported on the 2025 Form 1099-DIV.
(2)    For the taxable year ended December 31, 2024, $87,789 of the 2023 declared distributions are allocable to 2024 for federal income tax purposes and are reported on the 2024 Form 1099-DIV. For the taxable year ended December 31, 2024, $38,250 of the 2024 declared distributions are allocable to 2025 for federal income tax purposes and will be reported on the 2025 Form 1099-DIV.
As of September 12, 2024 when our prior annual report on Form 10-K was filed for the fiscal year ended June 30, 2024, we estimated our distributions for the fiscal and taxable years disclosed therein to be distributions of ordinary income. Subsequent to September 12, 2024, we obtained more information from our underlying investments as to the character of the distributions for the taxable year ended December 31, 2024, which resulted in changes to distributions previously disclosed in our annual report on Form 10-K for the fiscal year ended June 30, 2024. As a result of these changes, our total distributable loss on our Consolidated Statements of Assets and Liabilities in our annual report on Form 10-K for the fiscal year ended June 30, 2024 changed from $12,387,890 to $12,644,774, with $256,884 being reclassified to ordinary income from return of capital.
The Company's cost basis of investments as of December 31, 2025 for tax purposes was $72,873,236, resulting in an estimated net unrealized loss of $8,954,469. The gross unrealized gains and losses as of December 31, 2025 were $2,049,706 and $11,004,175, respectively. The Company's cost basis of investments as of June 30, 2025 for tax purposes was $88,771,185, resulting in an estimated net unrealized loss of $3,754,589. The gross unrealized gains and losses as of June 30, 2025 were $1,675,136 and $5,429,725, respectively.
Taxable income generally differs from net increase (decrease) in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The following reconciles the net increase (decrease) in net assets resulting from operations to taxable income for the taxable years ended December 31, 2025 and 2024.
 Taxable Year Ended December 31, 2025Taxable Year Ended December 31, 2024
Net increase (decrease) in net assets resulting from operations$(3,814,243)$102,228 
Net realized (gains) losses on investments2,880,695 3,366,992 
Net change in unrealized (gains) losses on investments5,307,259 (1,783,495)
Other temporary book-to-tax differences115,853 (33,001)
Permanent differences356,938 355,308 
Taxable income (loss) before deductions for distributions$4,846,502 $2,008,032 
Capital losses in excess of capital gains earned in a taxable year may generally be carried forward and used to offset capital gains, subject to certain limitations. For the taxable year ended December 31, 2025 and December 31, 2024, we had capital loss carryforwards of $9,373,790 and $7,727,035, respectively, available for use in later taxable years. The unused balance each year will be carried forward and utilized as gains are realized, subject to limitations. While our ability to utilize losses in the future depends upon a variety of factors that cannot be known in advance, some of the Company’s capital loss carryforwards may become permanently unavailable due to limitations by the Code.
As of our most recent taxable year ended December 31, 2025, we had undistributed ordinary income in excess of cumulative distributions, capital gain in excess of cumulative distributions, and capital loss carryforwards as follows:
 Tax Year Ended December 31, 2025
Undistributed ordinary income$1,359,095 
Undistributed long-term capital gains$— 
Capital loss carryforwards$(9,373,790)
In general, we make certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which may include merger-related items, differences in the book and tax basis of certain assets and liabilities, amortization of offering costs, expense payments, nondeductible federal excise taxes and net operating losses, among other items. During the taxable year ended December 31, 2025, we increased overdistributed net investment income by $356,938 and decreased capital in excess of par value by $356,938. During the taxable year ended December 31, 2024, we increased overdistributed net investment income by $355,308 and decreased capital in excess of par value by $355,308. Due to the difference between our fiscal and taxable year end, the reclassifications for the taxable year ended December 31, 2025 were recorded in the fiscal year ending June 30, 2026 and the reclassifications for the taxable year ended December 31, 2024 were recorded in the fiscal year ended June 30, 2025.