Investments (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Schedule of Investments |
The composition of the Company’s investments as of December 31, 2025, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:
|
|
|
|
|
|
|
|
|
Investment Type |
|
Investments at
Amortized Cost |
|
Percentage of
Total Portfolio |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
Senior Secured First Lien Debt Investments |
|
$142,061,165 |
|
74.59% |
|
$139,440,786 |
|
80.76% |
Unsecured Debt Investments |
|
— |
|
—% |
|
— |
|
—% |
Equity, Warrants and Other Investments |
|
48,389,594 |
|
25.41% |
|
33,218,076 |
|
19.24% |
Total |
|
$190,450,759 |
|
100.00% |
|
$172,658,862 |
|
100.00% |
The composition of the Company’s investments as of December 31, 2024, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:
|
|
|
|
|
|
|
|
|
Investment Type |
|
Investments at
Amortized Cost |
|
Percentage of
Total Portfolio |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
Senior Secured First Lien Debt Investments |
|
$156,688,970 |
|
78.15% |
|
$155,530,390 |
|
81.17% |
Unsecured Debt Investments |
|
— |
|
—% |
|
— |
|
—% |
Equity, Warrants and Other Investments |
|
43,816,937 |
|
21.85% |
|
36,086,568 |
|
18.83% |
Total |
|
$200,505,907 |
|
100.00% |
|
$191,616,958 |
|
100.00% |
The composition of the Company’s investments as of June 30, 2024, by investment type, as a percentage of the total portfolio, at amortized cost and fair value, are as follows:
|
|
|
|
|
|
|
|
|
Investment Type |
|
Investments at
Amortized Cost |
|
Percentage of
Total Portfolio |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
Senior Secured First Lien Debt Investments |
|
$166,099,349 |
|
81.23% |
|
$156,927,316 |
|
85.02% |
Equity, Warrants and Other Investments |
|
38,369,691 |
|
18.77% |
|
27,642,214 |
|
14.98% |
Total |
|
$204,469,040 |
|
100.00% |
|
$184,569,530 |
|
100.00% |
|
| Schedule of Portfolio Composition by Industry Grouping at Fair Value |
The Company uses Global Industry Classification Standard (“GICS”) codes to identify the industry groupings in its portfolio. The following table shows the portfolio composition by industry grouping at fair value at December 31, 2025, December 31, 2024 and June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
December 31, 2024 |
|
June 30, 2024 |
Industry Classification |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
Professional Services |
|
$25,034,204 |
|
14.50% |
|
$27,542,249 |
|
14.37% |
|
$23,687,433 |
|
12.84% |
IT Services |
|
15,852,380 |
|
9.18% |
|
13,677,485 |
|
7.14% |
|
8,681,364 |
|
4.70% |
Insurance |
|
15,311,902 |
|
8.87% |
|
14,883,386 |
|
7.77% |
|
7,406,155 |
|
4.01% |
Diversified Consumer Services |
|
14,796,609 |
|
8.57% |
|
13,555,936 |
|
7.07% |
|
12,118,153 |
|
6.57% |
Commercial Services & Supplies |
|
13,625,742 |
|
7.89% |
|
12,778,427 |
|
6.67% |
|
24,919,271 |
|
13.50% |
Trading Companies & Distributors |
|
13,507,873 |
|
7.82% |
|
16,550,362 |
|
8.64% |
|
16,814,468 |
|
9.11% |
Specialty Retail |
|
11,534,603 |
|
6.68% |
|
13,645,186 |
|
7.12% |
|
12,343,532 |
|
6.69% |
Containers & Packaging |
|
11,412,949 |
|
6.61% |
|
20,159,439 |
|
10.52% |
|
18,449,409 |
|
10.00% |
Food Products |
|
10,131,045 |
|
5.87% |
|
8,948,000 |
|
4.67% |
|
8,842,781 |
|
4.79% |
Entertainment |
|
8,050,639 |
|
4.66% |
|
6,356,272 |
|
3.32% |
|
8,811,199 |
|
4.77% |
Health Care Providers & Services |
|
7,000,000 |
|
4.05% |
|
6,000,000 |
|
3.13% |
|
5,400,000 |
|
2.93% |
Household Durables |
|
6,094,086 |
|
3.53% |
|
7,664,219 |
|
4.00% |
|
7,625,716 |
|
4.13% |
Interactive Media & Services |
|
5,445,000 |
|
3.15% |
|
5,472,222 |
|
2.86% |
|
— |
|
—% |
Consumer Staples Distribution & Retail |
|
4,622,506 |
|
2.68% |
|
5,794,191 |
|
3.02% |
|
5,341,899 |
|
2.89% |
Software |
|
4,430,155 |
|
2.57% |
|
7,130,522 |
|
3.72% |
|
5,044,158 |
|
2.73% |
Construction & Engineering |
|
3,844,332 |
|
2.23% |
|
3,698,210 |
|
1.93% |
|
3,662,626 |
|
1.99% |
Automobile Components |
|
1,809,086 |
|
1.05% |
|
3,014,929 |
|
1.57% |
|
2,621,154 |
|
1.42% |
Electronic Equipment, Instruments & Components |
|
155,751 |
|
0.09% |
|
1,768,423 |
|
0.92% |
|
2,645,950 |
|
1.43% |
Hotels, Restaurants & Leisure |
|
— |
|
—% |
|
2,977,500 |
|
1.56% |
|
2,947,612 |
|
1.60% |
Chemicals |
|
— |
|
—% |
|
— |
|
—% |
|
7,206,650 |
|
3.90% |
Total |
|
$172,658,862 |
|
100.00% |
|
$191,616,958 |
|
100.00% |
|
$184,569,530 |
|
100.00% |
|
| Schedule of Portfolio Composition by Geographic Grouping at Fair Value |
The following table shows the portfolio composition by geographic grouping at fair value at December 31, 2025, December 31, 2024 and June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
December 31, 2024 |
|
June 30, 2024 |
Geographic Region |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
|
Investments at
Fair Value |
|
Percentage of
Total Portfolio |
U.S. West |
|
$53,471,338 |
|
30.97% |
|
$50,821,899 |
|
26.52% |
|
$56,404,520 |
|
30.56% |
U.S. Northeast |
|
48,984,997 |
|
28.37% |
|
57,924,569 |
|
30.23% |
|
58,910,596 |
|
31.92% |
U.S. Southwest |
|
29,287,714 |
|
16.96% |
|
14,594,690 |
|
7.62% |
|
3,416,612 |
|
1.85% |
U.S. Southeast |
|
18,135,987 |
|
10.51% |
|
32,190,267 |
|
16.80% |
|
31,435,714 |
|
17.03% |
U.S. Midwest |
|
16,472,314 |
|
9.54% |
|
24,291,767 |
|
12.68% |
|
24,434,485 |
|
13.24% |
U.S. Mid-Atlantic |
|
6,306,512 |
|
3.65% |
|
7,712,299 |
|
4.02% |
|
6,717,548 |
|
3.64% |
International |
|
— |
|
—% |
|
4,081,467 |
|
2.13% |
|
3,250,055 |
|
1.76% |
Total |
|
$172,658,862 |
|
100.00% |
|
$191,616,958 |
|
100.00% |
|
$184,569,530 |
|
100.00% |
|
| Schedule of Fair Value Measurements of Assets |
The following table summarizes the classifications within the fair value hierarchy of the Company’s assets and liabilities measured at fair value as of December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets |
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
|
|
|
Senior Secured First Lien Debt Investments |
|
$— |
|
$23,462,060 |
|
$115,978,726 |
|
$139,440,786 |
Unsecured Debt Investments |
|
— |
|
— |
|
— |
|
— |
Equity, Warrants and Other Investments |
|
— |
|
— |
|
33,218,076 |
|
33,218,076 |
Total Investments |
|
$— |
|
$23,462,060 |
|
$149,196,802 |
|
$172,658,862 |
The following table summarizes the classifications within the fair value hierarchy of the Company’s assets and liabilities measured at fair value as of December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets |
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
|
|
|
Senior Secured First Lien Debt Investments |
|
$— |
|
$18,255,412 |
|
$137,274,978 |
|
$155,530,390 |
Unsecured Debt Investments |
|
— |
|
— |
|
— |
|
— |
Equity, Warrants and Other Investments |
|
— |
|
— |
|
36,086,568 |
|
36,086,568 |
Total Investments |
|
$— |
|
$18,255,412 |
|
$173,361,546 |
|
$191,616,958 |
The following table summarizes the classifications within the fair value hierarchy of the Company’s assets and liabilities measured at fair value as of June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Assets |
|
|
|
|
|
|
|
|
Investments |
|
|
|
|
|
|
|
|
Senior Secured First Lien Debt Investments |
|
$— |
|
$— |
|
$156,927,316 |
|
$156,927,316 |
Equity, Warrants and Other Investments |
|
— |
|
— |
|
27,642,214 |
|
27,642,214 |
Total Investments |
|
$— |
|
$— |
|
$184,569,530 |
|
$184,569,530 |
|
| Schedule of Reconciliation of Investments Measured at Fair Value on a Recurring Basis Using Level 3 Inputs |
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the twelve months ended December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
Senior Secured
First Lien
Debt Investments |
|
Unsecured
Debt
Investments |
|
Equity, Warrants
and Other
Investments |
|
Total
Investments |
Fair value at December 31, 2024 |
|
$137,274,978 |
|
$— |
|
$36,086,568 |
|
$173,361,546 |
Purchases (including PIK interest) |
|
27,174,547 |
|
— |
|
1,151,716 |
|
28,326,263 |
Sales and repayments |
|
(21,522,420) |
|
— |
|
(6,533,916) |
|
(28,056,336) |
Amortization |
|
1,154,236 |
|
— |
|
— |
|
1,154,236 |
Net realized gains (losses) |
|
(5,832,480) |
|
— |
|
5,005,667 |
|
(826,813) |
Transfers in |
|
2,973,778 |
|
— |
|
4,949,189 |
|
7,922,967 |
Transfers out |
|
(25,139,108) |
|
— |
|
— |
|
(25,139,108) |
Net change in unrealized (depreciation) appreciation |
|
(104,805) |
|
— |
|
(7,441,148) |
|
(7,545,953) |
Fair value at December 31, 2025 |
|
$115,978,726 |
|
$— |
|
$33,218,076 |
|
$149,196,802 |
Change in unrealized appreciation (depreciation) relating to assets still held as of December 31, 2025 |
|
$(3,205,070) |
|
$— |
|
$(4,076,872) |
|
$(7,281,942) |
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended December 31, 2024:
|
|
|
|
|
|
|
|
|
|
|
Senior Secured
First Lien
Debt Investments |
|
Unsecured
Debt
Investments |
|
Equity, Warrants
and Other
Investments |
|
Total
Investments |
Fair value at June 30, 2024 |
|
$156,927,316 |
|
$— |
|
$27,642,214 |
|
$184,569,530 |
Purchases (including PIK interest) |
|
25,822,955 |
|
— |
|
478,838 |
|
26,301,793 |
Sales and repayments |
|
(22,871,991) |
|
— |
|
— |
|
(22,871,991) |
Amortization |
|
794,619 |
|
— |
|
— |
|
794,619 |
Net realized gains (losses) |
|
(8,114,711) |
|
— |
|
— |
|
(8,114,711) |
Transfers in |
|
— |
|
— |
|
4,968,408 |
|
4,968,408 |
Transfers out |
|
(23,328,055) |
|
— |
|
— |
|
(23,328,055) |
Net change in unrealized (depreciation) appreciation |
|
8,044,845 |
|
— |
|
2,997,108 |
|
11,041,953 |
Fair value at December 31, 2024 |
|
$137,274,978 |
|
$— |
|
$36,086,568 |
|
$173,361,546 |
Change in unrealized appreciation (depreciation) relating to assets still held as of December 31, 2024 |
|
$8,193,187 |
|
$— |
|
$2,997,108 |
|
$11,190,295 |
The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the twelve months ended June 30, 2024:
|
|
|
|
|
|
|
|
|
|
|
Senior Secured
First Lien
Debt Investments |
|
Unsecured
Debt
Investments |
|
Equity, Warrants
and Other
Investments |
|
Total
Investments |
Fair value at June 30, 2023 |
|
$196,370,955 |
|
$— |
|
$23,740,374 |
|
$220,111,329 |
Purchases (including PIK interest) |
|
60,523,383 |
|
— |
|
4,871,820 |
|
65,395,203 |
Sales and repayments |
|
(92,303,435) |
|
— |
|
— |
|
(92,303,435) |
Amortization |
|
2,049,993 |
|
— |
|
— |
|
2,049,993 |
Net realized gains (losses) |
|
(13,909,425) |
|
— |
|
(62,112) |
|
(13,971,537) |
Transfers in |
|
— |
|
— |
|
4,362,023 |
|
4,362,023 |
Transfers out |
|
(4,362,023) |
|
— |
|
— |
|
(4,362,023) |
Net change in unrealized (depreciation) appreciation |
|
8,557,868 |
|
— |
|
(5,269,891) |
|
3,287,977 |
Fair value at June 30, 2024 |
|
$156,927,316 |
|
$— |
|
$27,642,214 |
|
$184,569,530 |
Change in unrealized appreciation (depreciation) relating to assets still held as of June 30, 2024 |
|
$(69,131) |
|
$— |
|
$(5,332,004) |
|
$(5,401,135) |
|
| Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs |
In addition to the techniques and inputs noted in the tables below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The below tables are not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Company’s determination of fair values.
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value as of
December 31, 2025 |
|
Valuation
Methodology |
|
Unobservable
Input(s) |
|
Weighted
Average (2) |
|
Range |
Senior Secured First Lien Debt Investments |
|
$108,159,290 |
|
Income Approach |
|
Market Yields |
|
11.9% |
|
4.6% - 19.59% |
Senior Secured First Lien Debt Investments |
|
1,725,350 |
|
Market Comparable Approach |
|
Revenue Multiple |
|
0.35x |
|
0.35x |
Senior Secured First Lien Debt Investments |
|
6,094,086 |
|
Recovery Analysis |
|
Recovery Amount (1) |
|
N/A |
|
N/A |
Unsecured Debt Investments |
|
— |
|
Recovery Analysis |
|
Recovery Amount (1) |
|
N/A |
|
N/A |
Equity, Warrants and Other Investments |
|
4,148,090 |
|
Income Approach |
|
Market Yields |
|
24.1% |
|
24.1% |
Equity, Warrants and Other Investments |
|
23,061,586 |
|
Market Comparable Approach |
|
EBITDA multiple |
|
10.5x |
|
6.1x - 18.2x |
Equity, Warrants and Other Investments |
|
6,008,400 |
|
Market Comparable Approach |
|
Revenue Multiple |
|
1.53x |
|
0.35x - 1.55x |
|
|
$149,196,802 |
|
|
|
|
|
|
|
|
(1) Recovery amounts involve various unobservable inputs including probabilities of different recovery scenarios, valuation multiples under such scenarios, and the timing to realize the associated recovery values. (2) Weighted by fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value as of
December 31, 2024 |
|
Valuation
Methodology |
|
Unobservable
Input(s) |
|
Weighted
Average (2) |
|
Range |
Senior Secured First Lien Debt Investments |
|
$102,502,885 |
|
Income Approach |
|
Market Yields |
|
11.8% |
|
8.7%-18.0% |
Senior Secured First Lien Debt Investments |
|
6,080,589 |
|
Market Comparable Approach |
|
EBITDA Multiple |
|
18.4x |
|
11.5x - 28.4x |
Senior Secured First Lien Debt Investments |
|
— |
|
Market Comparable Approach |
|
Revenue Multiple |
|
N/A |
|
N/A |
Senior Secured First Lien Debt Investments |
|
25,611,612 |
|
Recent Transaction |
|
Recent Transaction |
|
N/A |
|
N/A |
Senior Secured First Lien Debt Investments |
|
3,079,892 |
|
Recovery Analysis |
|
Recovery Amount (1) |
|
N/A |
|
N/A |
Unsecured Debt Investments |
|
— |
|
Recovery Analysis |
|
Recovery Amount (1) |
|
N/A |
|
N/A |
Equity, Warrants and Other Investments |
|
6,666,774 |
|
Income Approach |
|
Market Yields |
|
17.4% |
|
17.4% |
Equity, Warrants and Other Investments |
|
24,915,384 |
|
Market Comparable Approach |
|
EBITDA multiple |
|
12.6x |
|
4.7x - 28.4x |
Equity, Warrants and Other Investments |
|
4,504,410 |
|
Recent Transaction |
|
Recent Transaction |
|
N/A |
|
N/A |
|
|
$173,361,546 |
|
|
|
|
|
|
|
|
(1) Recovery amounts involve various unobservable inputs including probabilities of different recovery scenarios, valuation multiples under such scenarios, and the timing to realize the associated recovery values. 2) Weighted by fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value as of
June 30, 2024 |
|
Valuation
Methodology |
|
Unobservable
Input(s) |
|
Weighted
Average (2) |
|
Range |
Senior Secured First Lien Debt Investments |
|
$118,225,491 |
|
Income Approach |
|
Market Yields |
|
13.8% |
|
10.3% - 22.8% |
Senior Secured First Lien Debt Investments |
|
10,365,103 |
|
Market Comparable Approach |
|
EBITDA Multiple |
|
9.3x |
|
4.5x – 13.3x |
Senior Secured First Lien Debt Investments |
|
— |
|
Market Comparable Approach |
|
Revenue Multiple |
|
N/A |
|
N/A |
Senior Secured First Lien Debt Investments |
|
15,863,655 |
|
Recent Transaction |
|
Recent Transaction |
|
N/A |
|
N/A |
Senior Secured First Lien Debt Investments |
|
12,473,067 |
|
Recovery Analysis |
|
Recovery Amount (1) |
|
N/A |
|
N/A |
Equity, Warrants and Other Investments |
|
6,126,488 |
|
Income Approach |
|
Market Yields |
|
16.5% |
|
16.5% |
Equity, Warrants and Other Investments |
|
21,515,726 |
|
Market Comparable Approach |
|
EBITDA Multiple |
|
10.3x |
|
4.5x – 18.2x |
Equity, Warrants and Other Investments |
|
— |
|
Recent Transaction |
|
Recent Transaction |
|
N/A |
|
N/A |
|
|
$184,569,530 |
|
|
|
|
|
|
|
|
(1) Recovery amounts involve various unobservable inputs including probabilities of different recovery scenarios, valuation multiples under such scenarios, and the timing to realize the associated recovery values. (2) Weighted by fair value.
|