v3.25.4
FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the fair value of our investments that are measured at fair value on a recurring basis disaggregated into the three levels of the ASC 820 valuation hierarchy as of December 31, 2025 and June 30, 2025, respectively:
  As of December 31, 2025
  Level 1 Level 2 Level 3 Total
Portfolio Investments        
Senior Secured Loans-First Lien $—  $10,757,799  $47,117,403 $57,875,202 
Senior Secured Loans-Second Lien —  —  2,557,387 2,557,387 
Structured Subordinated Notes —  —  169,710  169,710 
Common Equity/Other— — 2,487,602 2,487,602 
Preferred Equity —  —  828,866 828,866 
Total Portfolio Investments $—  $10,757,799  $53,160,968  $63,918,767 
As of June 30, 2025
Level 1Level 2Level 3Total
Portfolio Investments
Senior Secured Loans-First Lien$— $21,263,851 $56,231,804 $77,495,655 
Senior Secured Loans-Second Lien— 1,749,570 2,500,000 4,249,570 
Structured Subordinated Notes— — 709,261 709,261 
Common Equity/Other— — 2,061,100 2,061,100 
Preferred Equity— — 501,010 501,010 
Total Portfolio Investments$— $23,013,421 $62,003,175 $85,016,596 
Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, management and the independent valuation firm look at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. These investments are classified as Level 1 or Level 2 in the fair value hierarchy.
The fair value of debt investments specifically classified as Level 2 in the fair value hierarchy are generally valued by an independent pricing agent or more than one principal market maker, if available, otherwise a principal market maker or a primary market dealer. We generally value over-the-counter securities by using the prevailing bid and ask prices from dealers during the relevant period end, which were provided by an independent pricing agent and screened for validity by such service.
In determining the range of values for debt instruments where market quotations are not available, and are therefore classified as Level 3 in the fair value hierarchy, except CLOs and debt investments in controlling portfolio companies, management and the independent valuation firm estimated corporate and security credit ratings and identified corresponding yields to maturity for each loan from relevant market data. A discounted cash flow technique was then applied using the appropriate yield to maturity as the discount rate, to determine a range of values. In determining the range of values for equity investments of portfolio companies , the enterprise value was determined by applying a market approach such as using earnings before interest, taxes, depreciation and amortization ("EBITDA") multiples, net income and/or book value multiples for similar guideline public companies and/or similar recent investment transactions and/or an income approach, such as the discounted cash flow technique. The enterprise value technique may also be used to value debt investments which are credit impaired. For stressed debt and equity investments, asset recovery analysis was used.
In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, which consider relevant data in the CLO market and certain benchmark credit indices, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the corresponding multi-path cash flow model.
Our portfolio consists of residual interests in CLOs, which involve a number of significant risks. CLOs are typically very highly levered (10 - 14 times), and therefore the residual interest tranches that we invest in are subject to a higher degree of risk of total loss. In particular, investors in CLO residual interests indirectly bear risks of the underlying loan investments held by such CLOs. We generally have the right to receive payments only from the CLOs, and generally do not have direct rights against the underlying borrowers or the entity that sponsored the CLOs. While the CLOs we target generally enable the investor to acquire interests in a pool of senior loans without the expenses associated with directly holding the same investments, the prices of indices and securities underlying our CLOs will rise or fall. These prices (and, therefore, the prices of the CLOs) will be influenced by the same types of political and economic events that affect issuers of securities and capital markets generally. The failure by a CLO investment in which we invest to satisfy financial covenants, including with respect to adequate collateralization and/or interest coverage tests, could lead to a reduction in its payments to us. In the event that a CLO fails certain tests, holders of debt senior to us would be entitled to additional payments that would, in turn, reduce the payments we would otherwise be entitled to receive. Separately, we may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting CLO or any other investment we may make. If any of these occur, it could materially and adversely affect our operating results and cash flows.
The interests we have acquired in CLOs are generally thinly traded or have only a limited trading market. CLOs are typically privately offered and sold, even in the secondary market. As a result, investments in CLOs may be characterized as illiquid securities. In addition to the general risks associated with investing in debt securities, CLO residual interests carry additional risks, including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) our investments in CLO tranches will likely be subordinate to other senior classes of note tranches thereof; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the CLO investment or unexpected investment results. Our net asset value may also decline over time if our principal recovery with respect to CLO residual interests is less than the cost of those investments. Our CLO investments and/or the CLOs’ underlying senior secured loans may prepay more quickly than expected, which could have an adverse impact on our value. These investments are classified as Level 3 in the fair value hierarchy.
An increase in interest rates would materially increase the CLO’s financing costs. Since most of the collateral positions within the CLOs have interest rate floors, there may not be corresponding increases in investment income (if interest rates increase but stay below the interest rate floor of such investments) resulting in materially smaller distribution payments to the residual interest investors.
We hold more than a 10% interest in certain foreign corporations that are treated as controlled foreign corporations ("CFC") for U.S. federal income tax purposes (including our residual interest tranche investments in CLOs). Therefore, we are treated as receiving a deemed distribution (taxable as ordinary income) each year from such foreign corporations in an amount equal to our pro rata share of the corporation’s income for that taxable year (including both ordinary earnings and capital gains). We are required to include such deemed distributions from a CFC in our taxable income and we are required to distribute at least 90% of such income to maintain our RIC status, regardless of whether or not the CFC makes an actual distribution during such year.
If we acquire shares in "passive foreign investment companies" ("PFICs") (including residual interest tranche investments in CLOs that are PFICs), we may be subject to federal income tax on a portion of any "excess distribution" or gain from the disposition of such shares even if such income is distributed as a taxable dividend to our stockholders. Certain elections may be available to mitigate or eliminate such tax on excess distributions, but such elections (if available) will generally require us to recognize our share of the PFIC’s income for each year regardless of whether we receive any distributions from such PFICs. We must nonetheless distribute such income to maintain our status as a RIC.
Legislation known as FATCA and regulations thereunder impose a withholding tax of 30% on payments of U.S. source interest and dividends to certain non-U.S. entities, including certain non-U.S. financial institutions and investment funds, unless such non-U.S. entity complies with certain reporting requirements regarding its United States account holders and its United States owners. Most CLOs in which we invest will be treated as non-U.S. financial entities for this purpose, and therefore will be required to comply with these reporting requirements to avoid the 30% withholding. If a CLO in which we invest fails to properly comply with these reporting requirements, it could reduce the amounts available to distribute to residual interest and junior debt holders in such CLO vehicle, which could materially and adversely affect our operating results and cash flows.
If we are required to include amounts in income prior to receiving distributions representing such income, we may have to sell some of our investments at times and/or at prices management would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities for this purpose.
A portion of the Company’s portfolio is concentrated in CLOs, which is subject to a risk of loss if that sector experiences a market downturn. The Company is subject to credit risk in the normal course of pursuing its investment objectives. The Company’s maximum risk of loss from credit risk for the portfolio of CLO investments is the inability of the CLOs collateral managers to return up to the cost value due to defaults occurring in the underlying loans of the CLOs.                                                 
Investments in CLOs residual interests generally offer less liquidity than other investment grade or high-yield corporate debt, and may be subject to certain transfer restrictions. The Company’s ability to sell certain investments quickly in response to changes in economic and other conditions and to receive a fair price when selling such investments may be limited, which could prevent the Company from making sales to mitigate losses on such investments. In addition, CLOs are subject to the possibility of liquidation upon an event of default of certain minimum required coverage ratios, which could result in full loss of value to the CLOs interests and junior debt investors.
The fair value of the Company’s investments may be significantly affected by changes in interest rates. The Company’s investments in senior secured loans through CLOs are sensitive to interest rate levels and volatility. In the event of a significant rising interest rate environment and/or economic downturn, loan defaults may increase and result in credit losses which may adversely affect the Company’s cash flow, fair value of its investments and operating results. In the event of a declining interest rate environment, a faster than anticipated rate of prepayments is likely to result in a lower than anticipated yield.
The significant unobservable input used to value our investments based on the yield technique and discounted cash flow technique is the market yield (or applicable discount rate) used to discount the estimated future cash flows expected to be received from the underlying investment, which includes both future principal and interest/dividend payments. Increases or decreases in the market yield (or applicable discount rate) would result in a decrease or increase, respectively, in the fair value measurement. Management and the independent valuation firms may consider the following factors when selecting market yields or discount rates: risk of default, rating of the investment and comparable company investments, and call provisions.
The significant unobservable inputs used to value our investments based on the EV analysis may include market multiples of specified financial measures such as EBITDA, net income, or book value of identified guideline public companies, implied valuation multiples from precedent M&A transactions, and/or discount rates applied in a discounted cash flow technique. The independent valuation firm identifies a population of publicly traded companies with similar operations and key attributes to that of the portfolio company. Using valuation and operating metrics of these guideline public companies and/or as implied by relevant precedent transactions, a range of multiples of the latest twelve months EBITDA, or other measure such as net income or book value, is typically calculated. The independent valuation firm utilizes the determined multiples to estimate the portfolio company’s EV generally based on the latest twelve months EBITDA of the portfolio company (or other meaningful measure). Increases or decreases in the multiple would result in an increase or decrease, respectively, in EV which would result in an increase or decrease in the fair value measurement of the debt of controlled companies and/or equity investment, as applicable. In certain instances, a discounted cash flow analysis may be considered in estimating EV, in which case, discount rates based on a weighted average cost of capital and application of the capital asset pricing model may be utilized.
Changes in market yields, discount rates, EBITDA multiples, each in isolation, may change the fair value measurement of certain of our investments. Generally, an increase in market yields, discount rates, or a decrease in EBITDA (or other) multiples may result in a decrease in the fair value measurement of certain of our investments.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.
In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations.
Changes in Valuation Techniques
During the six months ended December 31, 2025, the valuation methodology for Druid City Infusion, LLC (“Druid City”) for the Convertible First Lien Term Loan changed from a combination of the yield analysis, Black-Scholes Option Pricing Method, and enterprise value waterfall, to solely the enterprise value waterfall, given Druid City’s continued performance in excess of underwriting expectations, which resulted in comparable valuation outcomes across methodologies and a valuation increasingly driven by expected recovery rather than optionality. The fair value of our investment in the Convertible First Lien Term Loan increased to $98,783 as of December 31, 2025, a premium of $47,510 from its amortized cost, compared to the $30,177 unrealized premium recorded at June 30, 2025.
During the six months ended December 31, 2025, the valuation methodology for WatchGuard Technologies, Inc. for the First Lien Term Loan changed from the a combination of the yield analysis and market quotes to solely the yield analysis, given market quotes were less active in the current period. As a result, the fair value of our investment increased to $3,421,392, as of December 31, 2025, a premium of $49,638 to its amortized cost, compared to the $47,382 unrealized premium recorded at June 30, 2025.
The following table shows industries that comprise of greater than 10% of our portfolio at fair value as of December 31, 2025 and June 30, 2025:
December 31, 2025
CostFair Value% of Portfolio
Healthcare & Pharmaceuticals$23,261,465 $23,923,428 37 %
All Other Industries48,688,911 39,995,339 63 %
Total$71,950,376 $63,918,767 100 %

June 30, 2025
CostFair Value% of Portfolio
Healthcare & Pharmaceuticals$22,729,225 $22,902,129 27 %
All Other Industries65,675,581 62,114,467 73 %
Total$88,404,806 $85,016,596 100 %
As of December 31, 2025, investments in California and South Carolina comprised 11.9% and 10.7%, respectively, of our investments at fair value, with a cost of $7,285,397 and $6,649,488 and a fair value of $7,596,915 and $6,811,488, respectively.
As of June 30, 2025, investments in California and New Jersey comprised 12.0% and 10.8%, respectively, of our investments at fair value, with a cost of $10,111,172 and $10,269,586, respectively, and a fair value of $10,232,607 and $9,158,337, respectively.
The following is a reconciliation for the three and six months ended December 31, 2025 and 2024 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
  Senior
Secured
Loans -
First Lien		Senior
Secured
Loans -
Second Lien		Structured
Subordinated
Notes		Preferred EquityCommon Equity/Other Total
Fair Value at September 30, 2025 $50,111,613 $2,557,387 $366,014 $738,583 $2,322,276 $56,095,873 
Net realized gains (losses) on investments (649,548)— (181,657)— — (831,205)
Net change in unrealized gains (losses) on investments 727,966 — 53,044 67,021 165,326 1,013,357 
Net realized and unrealized gains (losses) on investments78,418 — (128,613)67,021 165,326 182,152 
Purchases of investments— — — — — — 
Payment-in-kind interest79,369 — — 23,262 — 102,631 
Accretion (amortization) of purchase discount and premium, net 76,446 — — — — 76,446 
Net Reductions to Subordinated Structured Notes and related investment cost— — (67,691)— — (67,691)
Repayments and sales of portfolio investments(3,228,443)— — — — (3,228,443)
Transfers into Level 3(1)
— — — — — — 
Transfers out of Level 3(1)
— — — — — — 
Fair Value at December 31, 2025 $47,117,403 $2,557,387 $169,710 $828,866 $2,487,602 $53,160,968 
        
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period $125,237 $— $53,044 $67,021 $165,326  $410,628 
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
  Senior
Secured
Loans -
First Lien		Senior
Secured
Loans -
Second Lien		Structured
Subordinated
Notes		Preferred EquityCommon Equity/Other Total
Fair Value at June 30, 2025 $56,231,804 $2,500,000 $709,261 $501,010 $2,061,100  $62,003,175 
Net realized gains (losses) on investments (576,639)— (418,030)— —  (994,669)
Net change in unrealized gains (losses) on investments 731,870 — 132,672 204,594 426,502  1,495,638 
Net realized and unrealized gains (losses) on investments155,231 — (285,358)204,594 426,502 500,969 
Purchases of investments4,462,306 57,387 — 100,000 — 4,619,693 
Payment-in-kind interest110,925 — — 23,262 — 134,187 
Accretion (amortization) of purchase discount and premium, net 127,099 — — — —  127,099 
Net Reductions to Subordinated Structured Notes and related investment cost— — (179,940)— — (179,940)
Repayments and sales of portfolio investments(11,287,418)— (74,253)— — (11,361,671)
Transfers into Level 3(1)
— — — — — — 
Transfers out of Level 3(1)
(2,682,544)— — — — (2,682,544)
Fair Value at December 31, 2025 $47,117,403 $2,557,387 $169,710 $828,866 $2,487,602  $53,160,968 
        
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period $95,493 $— $85,797 $204,594 $426,502  $812,386 
(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the six months ended December 31, 2025, one of our first lien loans transferred out of Level 3 to Level 2 due to an increase in the level of market activity during the period.
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
Senior
Secured
Loans -
First Lien		Senior
Secured
Loans -
Second Lien		Structured
Subordinated
Notes		Preferred EquityCommon Equity/OtherTotal
Fair Value at September 30, 2024$52,968,985 $1,594,778 $2,551,477 $100,069 $952,222 $58,167,531 
Net realized gains (losses) on investments— — (394,194)— — (394,194)
Net change in unrealized gains (losses) on investments80,148 38,244 36,443 (39,216)164,619 280,238 
Net realized and unrealized gains (losses) on investments80,148 38,244 (357,751)(39,216)164,619 (113,956)
Purchases of investments5,832,070 — — — — 5,832,070 
Restructuring of investments(961,877)— — — — (961,877)
Payment-in-kind interest78,879 18,827 — — — 97,706 
Accretion (amortization) of purchase discount and premium, net102,809 (5,599)— — — 97,210 
Net Reductions to Subordinated Structured Notes and related investment cost— — (215,294)— — (215,294)
Repayments and sales of portfolio investments(5,136,451)(17,640)— — — (5,154,091)
Transfers into Level 3(1)
7,641,484 — — — — 7,641,484 
Transfers out of Level 3(1)
— — — — — — 
Fair Value at December 31, 202460,606,047 1,628,610 1,978,432 60,853 1,116,841 $65,390,783 
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period$144,877 $38,244 $36,443 $(39,216)$164,619 $344,967 
(1) Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the three months ended December 31, 2024, none of our first lien loans transferred out of Level 3 to Level 2. During the three months ended December 31, 2024, two of our first lien loans transferred out of Level 2 to Level 3 due to a decrease in the level of market activity during the period and thus these investments were valued using observable inputs such as market yield analysis and indicative dealer quotes.
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
Senior
Secured
Loans -
First Lien		Senior
Secured
Loans -
Second Lien		Structured
Subordinated
Notes		Preferred EquityCommon Equity/OtherTotal
Fair Value at June 30, 2024$36,140,975 $1,559,701 $2,956,672 $100,000 $743,301 $41,500,649 
Net realized gains (losses) on investments— — (871,345)— (297,076)(1,168,421)
Net change in unrealized gains (losses) on investments463,357 61,814 280,372 (39,147)91,278 857,674 
Net realized and unrealized gains (losses) on investments463,357 61,814 (590,973)(39,147)(205,798)(310,747)
Purchases of investments27,852,956 — — — — 27,852,956 
Restructuring of investments(1,541,215)— — — 579,338 (961,877)
Payment-in-kind interest129,120 37,866 — — — 166,986 
Accretion (amortization) of purchase discount and premium, net264,557 (13,131)— — — 251,426 
Net Reductions to Subordinated Structured Notes and related investment cost— — (387,267)— — (387,267)
Repayments and sales of portfolio investments(10,345,187)(17,640)— — — (10,362,827)
Transfers into Level 3(1)
7,641,484 — — — — 7,641,484 
Transfers out of Level 3(1)
— — — — — — 
Fair Value at December 31, 2024$60,606,047 $1,628,610 $1,978,432 $60,853 $1,116,841 $65,390,783 
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period$121,981 $61,814 $280,372 $(39,147)$91,278 $516,298 
(1) Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the six months ended December 31, 2024, none of our first lien loans transferred out of Level 3 to Level 2. During the six months ended December 31, 2024, two of our first lien loans transferred out of Level 2 to Level 3 due to a decrease in the level of market activity during the period and thus these investments were valued using observable inputs such as market yield analysis and indicative dealer quotes.
The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2025:
Unobservable Inputs
Asset Category Fair Value Primary Valuation
Technique		 Inputs Range Weighted
Average
         
Senior Secured First Lien Debt$44,636,649 Discounted Cash Flow (Yield Analysis)Market yield7.57%to17.76%11.18%
Senior Secured First Lien Debt184,436 Enterprise Value Waterfall (Market Approach)EBITDA multiple4.25xto7.75x6.00x
Enterprise Value Waterfall (Discounted cash flow)Discount Rate15.50 %to17.50 %16.50%
Senior Secured First Lien Debt348,717 Discounted Cash Flow (Yield Analysis)Market yield13.14%to13.14%13.14%
Option Pricing ModelExpected Volatility50.00%to60.00%60.00%
Senior Secured First Lien Debt1,947,602 Enterprise Value Waterfall (Market Approach)EBITDA multiple6.00xto9.00x7.10x
Senior Secured Loans-Second Lien2,557,387 Enterprise Value Waterfall (Market Approach)EBITDA multiple6.00xto7.00x6.00x
Common Equity/Other 2,487,602  Enterprise Value Waterfall (Market Approach) EBITDA multiple 4.00xto9.25x 7.60x
Common Equity/Other— Enterprise Value Waterfall (Market Approach)Revenue Multiple0.28xto0.48x0.38x
Recoverable Amountn/aton/an/a
Preferred Equity296,876 Option Pricing ModelExpected Volatility60.00%to70.00%66.30%
Enterprise Value Waterfall (Market approach)EBITDA multiple5.50xto7.25x6.70x
Preferred Equity531,989 Enterprise Value Waterfall (Market approach)EBITDA multiple4.25xto7.75x6.50x
Subordinated Structured Notes 169,710  Discounted Cash Flow Discount rate 12.12%to12.85%
(1)(2)
12.41%
(1)(2)
$53,160,968 
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.
(2) Excludes investments that have been called for redemption or are currently marked to zero fair market value.
The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of June 30, 2025:
Unobservable Inputs
Asset Category Fair Value Primary Valuation
Technique		 Inputs Range Weighted
Average
         
Senior Secured First Lien Debt$51,519,112 Discounted Cash Flow (Yield Analysis)Market yield7.84%to15.85%10.88%
Senior Secured First Lien Debt179,615 Enterprise Value Waterfall (Market Approach)EBITDA multiple4.75xto7.75x6.25x
Enterprise Value Waterfall (Discounted cash flow)Discount Rate15.00 %to17.00 %16.00%
Senior Secured First Lien Debt2,682,544 Market QuotesIndicative Dealer Quotes89.68%to91.43%90.55%
Senior Secured First Lien Debt252,767 Discounted Cash Flow (Yield Analysis)Market yield17.21%to17.21%17.21%
Option Pricing ModelExpected Volatility45.00%to55.00%55.00%
Senior Secured First Lien Debt80,929 Discounted Cash Flow (Yield Analysis)Market yield26.38%to26.38%26.38%
Option Pricing ModelExpected Volatility45%to55%55%
Enterprise Value Waterfall (Market Approach)EBITDA multiple8.00xto9.00x9.00x
Senior Secured First Lien Debt1,506,771 Enterprise Value Waterfall (Market Approach)EBITDA multiple5.50xto7.50x6.45x
Senior Secured First Lien Debt10,066 Liquidation ScenarioEBITDA multiple1.00xto1.00x1.00x
Senior Secured Loans-Second Lien2,500,000 Enterprise Value Waterfall (Market Approach)Purchase PriceN/AtoN/AN/A
Common Equity/Other 1,961,100  Enterprise Value Waterfall (Market Approach) EBITDA multiple 4.00xto9.00x 7.22x
Common Equity/Other100,000 Enterprise Value Waterfall (Market Approach)Purchase PriceN/AtoN/AN/A
Common Equity/Warrants— Enterprise Value Waterfall (Market Approach)Revenue multiple0.00xto0.45x0.00x
Preferred Equity178,802 Option Pricing ModelExpected Volatility55.00%to70.00%64.00%
Enterprise Value Waterfall (Market approach)EBITDA multiple3.25xto6.75x 4.90x
Preferred Equity322,208 Enterprise Value Waterfall (Market approach)EBITDA multiple5.50xto7.25x6.35x
Subordinated Structured Notes 709,261  Discounted Cash Flow Discount rate 15.21%to17.32%
(1)(2)
16.61%
(1)(2)
$62,003,175 
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.
(2) Excludes investments that have been called for redemption or are currently marked to zero fair market value.
For the three months ended December 31, 2025 and 2024, there were no structuring fees recognized as part of interest income on the Consolidated Statements of Operations.
For the six months ended December 31, 2025 and 2024, there were $90,000 and $102,705 structuring fees recognized as part of interest income on the Consolidated Statements of Operations.
For the three months ended December 31, 2025 and 2024, there were accelerated original issue discounts due to repayments of $51,932 and $64,729, respectively, included in interest income.
For the six months ended December 31, 2025 and 2024, there were accelerated original issue discounts due to repayments of $57,976 and $227,840, respectively, included in interest income.
For the three and six months ended December 31, 2025 and 2024, there was no early repayment income included in interest income.
Financial Instruments Disclosed, But Not Carried at Fair Value
The following table presents the carrying value and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of December 31, 2025 and the level of each financial liability within the fair value hierarchy:
Carrying valueFair ValueLevel 1Level 2Level 3
OZK Credit Facility(1)
 $37,040,732 $37,040,732 $— $— $37,040,732 
 $37,040,732 $37,040,732 $— $—  $37,040,732 
        
(1)As of December 31, 2025, the fair value of the OZK Credit Facility was $37,040,732, the balance outstanding, and is categorized as Level 3 under ASC 820. The fair value of the OZK Credit Facility approximates the carrying value since the OZK Credit Facility bears a floating rate and re-prices to market frequently.
The following table presents the carrying value and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of June 30, 2025 and the level of each financial liability within the fair value hierarchy:
Carrying valueFair ValueLevel 1Level 2Level 3
Senior Secured Revolving Credit Facility(1)
 $45,500,000 $45,500,000 $— $— $45,500,000 
 $45,500,000 $45,500,000 $— $—  $45,500,000 
        
(1)As of June 30, 2025, the fair value of the Senior Secured Revolving Credit Facility was $45,500,000, the balance outstanding, and is categorized as Level 3 under ASC 820. The fair value of the Senior Revolving Credit Facility approximates the carrying value since the Senior Secured Revolving Credit Facility bears a floating rate and re-prices to market frequently.