Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | NexPoint Capital, Inc. |
Entity Central Index Key | 0001588272 |
Entity File Number | 814-01074 |
Entity Tax Identification Number | 38-3926499 |
Entity Shell Company | false |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Document Quarterly Report | true |
Document Transition Report | false |
Entity Incorporation, State or Country Code | DE |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 9,548,899 |
Entity Address, Address Line One | 300 Crescent Court, Suite 700 |
Entity Address, City or Town | Dallas |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75201 |
Local Phone Number | 628-4100 |
City Area Code | 972 |
Title of 12(g) Security | Common Stock, par value $0.001 per share |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Investments, fair value disclosure | $ 48,731,529 | $ 53,293,715 |
Cash and cash equivalents | 1,131,784 | 1,629,846 |
Receivable for investments sold | 3,318,593 | 0 |
Dividends and interest receivable | 312,746 | 220,194 |
Receivable from Adviser | 81,858 | 92,216 |
Prepaid expenses | 14,029 | 15,905 |
Total assets | 53,590,539 | 55,251,876 |
Liabilities | ||
Payable for investments purchased | 991,699 | 0 |
Payable to Adviser | 317,702 | 314,993 |
Accrued expenses and other liabilities | 262,432 | 371,736 |
Distributions payable | 859,401 | 870,980 |
Total liabilities | 2,431,234 | 1,557,709 |
Commitments and Contingencies | 0 | 0 |
Net assets | ||
Preferred stock, $0.001 par value (25,000,000 shares authorized, 0 shares issued and outstanding) | ||
Common stock, $0.001 par value (200,000,000 shares authorized, 9,677,593 and 9,956,228 shares issued and outstanding, respectively) | 9,549 | 9,678 |
Paid-in capital in excess of par | 86,251,861 | 86,949,376 |
Distributable earnings (accumulated loss) | (35,102,105) | (33,264,887) |
Total net assets | $ 51,159,305 | $ 53,694,167 |
Net asset value per share of common stock | $ 5.36 | $ 5.55 |
Unaffiliated investments | ||
Assets | ||
Investments, fair value disclosure | $ 37,859,825 | $ 43,020,714 |
Affiliated investments | ||
Assets | ||
Investments, fair value disclosure | $ 10,871,704 | $ 10,273,001 |
Statements of Assets and Liab_2
Statements of Assets and Liabilities (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Investments owned at cost | $ 50,811,343 | $ 54,011,971 |
Preferred stock stated or par value per share | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 25,000,000 | 25,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock stated or par value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 200,000,000 | 200,000,000 |
Common stock shares issued | 9,548,899 | 9,677,593 |
Common stock shares outstanding | 9,548,899 | 9,677,593 |
Unaffiliated investments | ||
Investments owned at cost | $ 38,023,138 | $ 41,687,079 |
Affiliated investments | ||
Investments owned at cost | $ 12,788,205 | $ 12,324,892 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investment income: | ||
Interest | $ 636,822 | $ 562,607 |
Interest paid-in-kind | 29,847 | 106,711 |
Total investment income | 814,832 | 1,014,610 |
Expenses: | ||
Investment advisory fees | 265,381 | 299,270 |
Custodian and accounting service fees | 75,988 | 76,747 |
Administration fees | 52,321 | 59,601 |
Stock transfer fee | 41,136 | 50,183 |
Audit and tax fees | 40,348 | 39,474 |
Other expenses | 25,607 | 20,230 |
Reports to stockholders | 18,232 | 17,795 |
Legal fees | 9,189 | 18,218 |
Directors' fees | 4,967 | 3,731 |
Total expenses | 533,169 | 585,249 |
Expenses (waived) or recouped by the Adviser | (81,858) | (61,761) |
Net expenses | 451,311 | 523,488 |
Net investment income | 363,521 | 491,122 |
Net realized and unrealized gains (losses) on investments: | ||
Net realized and unrealized gains (losses) | (1,341,338) | 653,895 |
Net increase (decrease) in net assets resulting from operations | $ (977,817) | $ 1,145,017 |
Net investment income: | $ 0.04 | $ 0.05 |
Earnings (loss) per share: Basic | (0.1) | 0.11 |
Earnings (loss) per share: Diluted | $ (0.1) | $ 0.11 |
Weighted average shares outstanding: Basic | 9,699,655 | 9,990,797 |
Weighted average shares outstanding: Diluted | 9,699,655 | 9,990,797 |
Unaffiliated investments | ||
Investment income: | ||
Dividend income | $ 36,707 | $ 95,633 |
Net realized and unrealized gains (losses) on investments: | ||
Net realized gain (loss) on: | 20,220 | 241,708 |
Net change in unrealized appreciation (depreciation) on: | (1,496,947) | (1,338,064) |
Affiliated investments | ||
Investment income: | ||
Dividend income | 111,456 | 249,659 |
Net realized and unrealized gains (losses) on investments: | ||
Net realized gain (loss) on: | 0 | (74,604) |
Net change in unrealized appreciation (depreciation) on: | $ 135,389 | $ 1,824,855 |
Statements of Changes in Net As
Statements of Changes in Net Assets - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Beginning Balance | $ 53,694,167 | $ 62,938,908 |
Net investment income | 363,521 | 491,122 |
Net realized gain (loss) on investments | 20,220 | 167,104 |
Net change in unrealized appreciation (depreciation) on investments | (1,361,558) | 486,791 |
Repurchase of common stock | $ (991,699) | (550,120) |
Repurchase of common stock, Shares | 0 | |
Reinvestment of common stock | $ 294,055 | 306,152 |
Distributions to stockholders from net investment income | (859,401) | (892,680) |
Total increase (decrease) | (2,534,862) | 8,369 |
Ending Balance | $ 51,159,305 | $ 62,947,277 |
Distributions to stockholders per share | $ 0.09 | $ 0.09 |
Common Stock | ||
Beginning Balance | $ 9,678 | $ 9,956 |
Beginning Balance, Shares | 9,677,593 | 9,956,228 |
Repurchase of common stock | $ (181) | $ (86) |
Repurchase of common stock, Shares | (181,298) | (85,999) |
Reinvestment of common stock | $ 53 | $ 49 |
Reinvestment of common stock, Shares | 52,604 | 48,442 |
Total increase (decrease) | $ (128) | $ (37) |
Total increase (decrease), Shares | (128,694) | (37,557) |
Ending Balance | $ 9,550 | $ 9,919 |
Ending Balance, Shares | 9,548,899 | 9,918,671 |
Paid in Capital in Excess of Par | ||
Beginning Balance | $ 86,949,376 | $ 91,135,719 |
Repurchase of common stock | (991,518) | (550,034) |
Reinvestment of common stock | 294,002 | 306,103 |
Total increase (decrease) | (697,516) | (243,931) |
Ending Balance | 86,251,860 | 90,891,788 |
Distributable Earnings | ||
Beginning Balance | (33,264,887) | (28,206,767) |
Net investment income | 363,521 | 491,122 |
Net realized gain (loss) on investments | 20,220 | 167,104 |
Net change in unrealized appreciation (depreciation) on investments | (1,361,558) | 486,791 |
Distributions to stockholders from net investment income | (859,401) | (892,680) |
Total increase (decrease) | (1,837,218) | 252,337 |
Ending Balance | $ (35,102,105) | $ (27,954,430) |
Distributions to stockholders per share | $ 0.09 | $ 0.09 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows provided by (used in) operating activities | ||
Net increase (decrease) in net assets resulting from operations | $ (977,817) | $ 1,145,017 |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||
Purchases of investment securities | 0 | (6,918,805) |
Payment-in-kind investments | (29,847) | (106,711) |
Proceeds from sales and principal repayments of investment securities | 3,345,666 | 5,643,969 |
Net realized (gain) loss on Unaffiliated investments | (20,220) | (167,104) |
Net change in unrealized (appreciation) depreciation on investments | 1,361,558 | (486,791) |
Amortization of premium/discount, net | (94,971) | (87,336) |
Change in operating assets and liabilities: | ||
(Increase) decrease in receivable for investments sold | (3,318,593) | 990,537 |
(Increase) decrease in dividends and interest receivable | (92,552) | (181,211) |
(Increase) decrease in receivable from Adviser | 10,358 | 37,082 |
(Increase) decrease in prepaid expenses | 1,876 | 2,558 |
Increase (decrease) in payable for fund shares repurchased | 991,699 | 0 |
Increase (decrease) in payable for investments purchased | 0 | (301,369) |
Increase (decrease) in payable to Adviser | 2,709 | (19,351) |
Increase (decrease) in accrued expenses and other liabilities | (109,304) | 57,764 |
Net cash flows provided by (used in) operating activities | 1,070,562 | (391,751) |
Cash flows provided by (used in) financing activities | ||
Repurchase of common stock, net of payable | (991,699) | (550,120) |
Distributions paid in cash | (576,925) | (589,909) |
Net cash flows (used in) financing activities | (1,568,624) | (1,140,029) |
Net decrease in cash and cash equivalents | (498,062) | (1,531,780) |
Cash and cash equivalents | ||
Beginning of the period | 1,629,846 | 2,811,171 |
End of the period | 1,131,784 | 1,279,391 |
Supplemental disclosure and non-cash financing activities | ||
Paid-in-kind interest income | 29,847 | 106,711 |
Reinvestment of distributions paid | 294,055 | 306,152 |
Local and excise taxes paid | 41,919 | 30,187 |
Unaffiliated investments | ||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||
Net realized (gain) loss on Unaffiliated investments | $ (20,220) | $ (167,104) |
Schedule of Investments
Schedule of Investments - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | ||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 48,731,529 | $ 53,293,715 | |||
Senior Secured Loans At Nineteen Point Six Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 10,031,617 | ||||
Asset Backed Securities At Zero Point Zero Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 7,280 | 7,036 | |||
Corporate Bonds At Four Point Nine Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 2,500,245 | ||||
Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 14,228,193 | ||||
Corporate Bonds At Five Point Zero Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 2,704,917 | ||||
Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 8,466,015 | ||||
Tele Communication Services At Two Point Two Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 1,102,288 | ||||
Financials At Zero Point Zero Percent [Member] | Asset Backed Securities At Zero Point Zero Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 7,280 | $ 7,036 | |||
Financials At Zero Point Zero Percent [Member] | Asset Backed Securities At Zero Point Zero Percent [Member] | Grayson Investor Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Grayson Investor Corp. | Grayson Investor Corp. | [1],[2],[3],[4],[5],[6] | ||
Principal Amount | [1],[4],[5] | $ 800 | [7],[8],[9] | $ 800 | [2],[3],[6] |
Amortized Cost | [1],[4],[5] | 218,666 | [7],[8],[9],[10] | 218,666 | [2],[3],[6] |
Fair Value | [1],[4],[5] | $ 7,267 | [7],[8],[9] | $ 7,023 | [2],[3],[6] |
Financials At Zero Point Zero Percent [Member] | Asset Backed Securities At Zero Point Zero Percent [Member] | PAMCO CLO19971AB [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | PAMCO CLO 1997-1A B | PAMCO CLO 1997-1A B | [1],[2],[3],[4],[6],[11] | ||
Principal Amount | [1],[4],[11] | $ 295,435 | [7],[8],[9] | $ 295,435 | [2],[3],[6] |
Amortized Cost | [1],[4],[11] | 169,875 | [7],[8],[9],[10] | 169,875 | [2],[3],[6] |
Fair Value | [1],[4],[11] | $ 13 | [7],[8],[9] | 13 | [2],[3],[6] |
Healthcare At Four Point Four Percent [Member] | Corporate Bonds At Four Point Nine Percent [Member] | Hadrian Merger Sub, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Hadrian Merger Sub, Inc. | ||||
Maturity Date | [8] | May 01, 2026 | |||
Principal Amount | [8] | $ 2,728,000 | |||
Amortized Cost | [8],[10] | 2,476,999 | |||
Fair Value | [8] | 2,240,779 | |||
Media And Telecommunications At Zero Point Five Percent [Member] | Corporate Bonds At Four Point Nine Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 259,466 | ||||
Media And Telecommunications At Zero Point Five Percent [Member] | Corporate Bonds At Five Point Zero Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 290,078 | ||||
Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 13,158,950 | ||||
Healthcare At Twenty Four Point Five Percentage [Member] | Corporate Bonds At Five Point Zero Percent [Member] | Hadrian Merger Sub, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3] | Hadrian Merger Sub, Inc. | |||
Tele Communication Services At Two point Zero Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 1,069,243 | ||||
Healthcare At Four Point Five Percent [Member] | Corporate Bonds At Five Point Zero Percent [Member] | Hadrian Merger Sub, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Interest Rate | [3] | 8.500% | |||
Maturity Date | [3] | May 01, 2026 | |||
Principal Amount | [3] | $ 2,728,000 | |||
Amortized Cost | [3] | 2,460,536 | |||
Fair Value | [3] | $ 2,414,839 | |||
Tele Communication Services At Zero Point Five Percentage [Member] | Corporate Bonds At Five Point Zero Percent [Member] | iHeartCommunications, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [6] | iHeartCommunications, Inc. | |||
First Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Base Rate Floor | [1],[7],[12] | 1.00 | |||
First Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | Auris Luxembourg III S.a.r.l. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Auris Luxembourg III S.a.r.l. | ||||
Interest Rate | [9],[12] | L + 375 | |||
Base Rate Floor | [9],[12] | 4.93 | |||
Maturity Date | [9],[12] | Feb. 27, 2026 | |||
Principal Amount | [9],[12] | $ 1,465,094 | |||
Amortized Cost | [9],[10],[12] | 1,461,589 | |||
Fair Value | [9],[12] | $ 1,331,038 | |||
First Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | Carestream Health Inc [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Carestream Health, Inc. | ||||
Interest Rate | [13] | SOFR + 750 | |||
Base Rate Floor | [13] | 5.00 | |||
Maturity Date | [13] | Sep. 30, 2027 | |||
Principal Amount | [13] | $ 668,605 | |||
Amortized Cost | [10],[13] | 579,387 | |||
Fair Value | [13] | $ 398,990 | |||
First Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | CCS Medical, Inc [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | CCS Medical, Inc | ||||
Interest Rate | [1],[7],[12] | L + 1400 | |||
Maturity Date | [1],[7],[12] | Apr. 07, 2026 | |||
Principal Amount | [1],[7],[12] | $ 3,000,000 | |||
Amortized Cost | [1],[7],[10],[12] | 2,930,985 | |||
Fair Value | [1],[7],[12] | $ 3,000,000 | |||
First Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | Covenant Surgical Partners, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Covenant Surgical Partners, Inc. | ||||
Interest Rate | [12] | L + 400 | |||
Base Rate Floor | [12] | 4.82 | |||
Maturity Date | [12] | Jul. 01, 2026 | |||
Principal Amount | [12] | $ 1,609,272 | |||
Amortized Cost | [10],[12] | 1,611,581 | |||
Fair Value | [12] | $ 1,366,545 | |||
First Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | Envision Healthcare Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Envision Healthcare Corp. | ||||
Interest Rate | [12] | L + 375 | |||
Base Rate Floor | [12] | 5.16 | |||
Maturity Date | [12] | Oct. 10, 2025 | |||
Principal Amount | [12] | $ 4,501,911 | |||
Amortized Cost | [10],[12] | 3,754,602 | |||
Fair Value | [12] | $ 348,898 | |||
First Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | Wellpath Holdings, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Wellpath Holdings, Inc. | ||||
Interest Rate | [12] | L + 550 | |||
Base Rate Floor | [12] | 4.83 | |||
Maturity Date | [12] | Oct. 01, 2025 | |||
Principal Amount | [12] | $ 982,051 | |||
Amortized Cost | [10],[12] | 978,000 | |||
Fair Value | [12] | $ 667,265 | |||
First Lien Term Loan [Member] | Real Estate At Zero Point Nine Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | NexPoint Capital REIT, LLC [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | NexPoint Capital REIT, LLC | ||||
Interest Rate | [1],[7],[14] | PRIME | |||
Base Rate Floor | [1],[7],[14] | 8.00 | |||
Maturity Date | [1],[7],[14] | Mar. 25, 2025 | |||
Principal Amount | [1],[7],[14] | $ 463,314 | |||
Amortized Cost | [1],[7],[10],[14] | 463,314 | |||
Fair Value | [1],[7],[14] | $ 463,314 | |||
First Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | Auris Luxembourg III S.a.r.l. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [6],[15] | Auris Luxembourg III S.a.r.l. | |||
Interest Rate | [6],[15] | L + 375 | |||
Base Rate Floor | [6],[15] | 4.93% | |||
Maturity Date | [6],[15] | Feb. 27, 2026 | |||
Principal Amount | [6],[15] | $ 1,468,909 | |||
Amortized Cost | [6],[15] | 1,465,131 | |||
Fair Value | [6],[15] | $ 1,318,346 | |||
First Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | Carestream Health Inc [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [16] | Carestream Health, Inc. | |||
Interest Rate | [16] | L + 675 | |||
Base Rate Floor | [16] | 12.18% | |||
Maturity Date | [16] | Sep. 30, 2027 | |||
Principal Amount | [16] | $ 668,605 | |||
Amortized Cost | [16] | 576,001 | |||
Fair Value | [16] | $ 511,483 | |||
First Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | CCS Medical, Inc [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [1],[2],[16] | CCS Medical, Inc | |||
Interest Rate | [1],[2],[16] | 14% Fixed | |||
Maturity Date | [1],[2],[16] | Apr. 07, 2026 | |||
Principal Amount | [1],[2],[16] | $ 3,000,000 | |||
Amortized Cost | [1],[2],[16] | 2,926,520 | |||
Fair Value | [1],[2],[16] | $ 3,000,000 | |||
First Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | Covenant Surgical Partners, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [17] | Covenant Surgical Partners, Inc. | |||
Interest Rate | [17] | L + 400 | |||
Base Rate Floor | [17] | 4.41% | |||
Maturity Date | [17] | Jul. 01, 2026 | |||
Principal Amount | [17] | $ 1,613,305 | |||
Amortized Cost | [17] | 1,615,775 | |||
Fair Value | [17] | $ 1,367,276 | |||
First Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | Envision Healthcare Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [17] | Envision Healthcare Corp. | |||
Interest Rate | [17] | L + 375 | |||
Base Rate Floor | [17] | 4.07% | |||
Maturity Date | [17] | Oct. 10, 2025 | |||
Principal Amount | [17] | $ 4,518,572 | |||
Amortized Cost | [17] | 3,709,077 | |||
Fair Value | [17] | $ 1,354,645 | |||
First Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | RxBenefits, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [15] | RxBenefits, Inc. | |||
Interest Rate | [15] | L +450 | |||
Base Rate Floor | [15] | 2.11% | |||
Maturity Date | [15] | Dec. 20, 2027 | |||
Principal Amount | [15] | $ 1,993,177 | |||
Amortized Cost | [15] | 1,963,107 | |||
Fair Value | [15] | $ 1,888,535 | |||
First Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | Wellpath Holdings, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [16] | Wellpath Holdings, Inc. | |||
Interest Rate | [16] | L + 550 | |||
Base Rate Floor | [16] | 4.41% | |||
Maturity Date | [16] | Oct. 01, 2025 | |||
Principal Amount | [16] | $ 984,615 | |||
Amortized Cost | [16] | 980,197 | |||
Fair Value | [16] | $ 783,793 | |||
Second Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | CNT Holdings I Corp [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | CNT Holdings I Corp | ||||
Interest Rate | [12] | L + 675 | |||
Base Rate Floor | [12] | 4.63 | |||
Maturity Date | [12] | Nov. 06, 2028 | |||
Principal Amount | [12] | $ 0 | |||
Amortized Cost | [10],[12] | (783) | |||
Fair Value | [12] | $ 0 | |||
Second Lien Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | Sound Inpatient Physicians [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Sound Inpatient Physicians | ||||
Interest Rate | [12] | L + 675 | |||
Base Rate Floor | [12] | 4.83 | |||
Maturity Date | [12] | Jun. 26, 2026 | |||
Principal Amount | [12] | $ 1,555,556 | |||
Amortized Cost | [10],[12] | 1,486,286 | |||
Fair Value | [12] | $ 1,070,222 | |||
Second Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | CNT Holdings I Corp [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [16] | CNT Holdings I Corp | |||
Interest Rate | [16] | L + 675 | |||
Base Rate Floor | [16] | 3.74% | |||
Maturity Date | [16] | Nov. 06, 2028 | |||
Principal Amount | [16] | $ 1,500,000 | |||
Amortized Cost | [16] | 1,494,084 | |||
Fair Value | [16] | $ 1,422,503 | |||
Second Lien Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | Sound Inpatient Physicians [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [17] | Sound Inpatient Physicians | |||
Interest Rate | [17] | L + 675 | |||
Base Rate Floor | [17] | 4.07% | |||
Maturity Date | [17] | Jun. 26, 2026 | |||
Principal Amount | [17] | $ 1,555,556 | |||
Amortized Cost | [17] | 1,481,972 | |||
Fair Value | [17] | $ 1,229,869 | |||
First Lien Delayed Draw Term Loan [Member] | Healthcare At Sixteen Point Five Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | Covenant Surgical Partners, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Covenant Surgical Partners, Inc. | ||||
Interest Rate | 4% Fixed | ||||
Maturity Date | Jul. 01, 2026 | ||||
Principal Amount | $ 333,333 | ||||
Amortized Cost | [10],[12] | 333,783 | |||
Fair Value | $ 283,057 | ||||
First Lien Delayed Draw Term Loan [Member] | Healthcare At Twenty Four Point Five Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | Covenant Surgical Partners, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Covenant Surgical Partners, Inc. | ||||
Interest Rate | 4% Fixed | ||||
Maturity Date | Jul. 01, 2026 | ||||
Principal Amount | $ 333,333 | ||||
Amortized Cost | 333,817 | ||||
Fair Value | $ 282,500 | ||||
Interest Rate At Six Point Three Eight Percentage [Member] | Media And Telecommunications At Zero Point Five Percent [Member] | Corporate Bonds At Four Point Nine Percent [Member] | iHeartCommunications, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | iHeartCommunications, Inc. | ||||
Maturity Date | [9] | May 01, 2026 | |||
Principal Amount | [9] | $ 116,808 | |||
Amortized Cost | [9],[10] | 313,455 | |||
Fair Value | [9] | $ 103,192 | |||
Interest Rate At Six Point Three Eight Percentage [Member] | Media And Telecommunications At Zero Point Five Percent [Member] | Corporate Bonds At Five Point Zero Percent [Member] | iHeartCommunications, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Interest Rate | [6] | 6.375% | |||
Maturity Date | [6] | May 01, 2026 | |||
Principal Amount | [6] | $ 116,808 | |||
Amortized Cost | [6] | 313,455 | |||
Fair Value | [6] | $ 107,648 | |||
Interest Rate At Eight Point Three Eight Percentage [Member] | Media And Telecommunications At Zero Point Five Percent [Member] | Corporate Bonds At Four Point Nine Percent [Member] | iHeartCommunications, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | iHeartCommunications, Inc. | ||||
Maturity Date | [9] | May 01, 2027 | |||
Principal Amount | [9] | $ 214,073 | |||
Amortized Cost | [9],[10] | 584,792 | |||
Fair Value | [9] | $ 156,274 | |||
Interest Rate At Eight Point Three Eight Percentage [Member] | Media And Telecommunications At Zero Point Five Percent [Member] | Corporate Bonds At Five Point Zero Percent [Member] | iHeartCommunications, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Interest Rate | [6] | 8.375% | |||
Maturity Date | [6] | May 01, 2027 | |||
Principal Amount | [6] | $ 214,073 | |||
Amortized Cost | [6] | 584,792 | |||
Fair Value | [6] | $ 182,430 | |||
First Lien Term Loan E [Member] | Tele Communication Services At Two Point Two Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | TerreStar Corp. | ||||
Interest Rate | [1],[7] | 11% PIK | |||
Base Rate Floor | [1],[7] | 11.00 | |||
Maturity Date | [1],[7] | Feb. 28, 2024 | |||
Principal Amount | [1],[7] | $ 838,322 | |||
Amortized Cost | [1],[7],[10] | 838,322 | |||
Fair Value | [1],[7] | $ 836,016 | |||
First Lien Term Loan E [Member] | Tele Communication Services At Two point Zero Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [1],[2] | TerreStar Corp. | |||
Interest Rate | [1],[2] | 11%PIK | |||
Maturity Date | [1],[2] | Feb. 28, 2024 | |||
Principal Amount | [1],[2] | $ 815,685 | |||
Amortized Cost | [1],[2] | 815,684 | |||
Fair Value | [1],[2] | $ 810,953 | |||
First Lien Term Loan F [Member] | Tele Communication Services At Two Point Two Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | TerreStar Corp. | ||||
Interest Rate | [1],[7] | 11% PIK | |||
Base Rate Floor | [1],[7] | 0.00 | |||
Maturity Date | [1],[7] | Feb. 28, 2024 | |||
Principal Amount | [1],[7] | $ 198,467 | |||
Amortized Cost | [1],[7],[10] | 198,467 | |||
Fair Value | [1],[7] | $ 197,921 | |||
First Lien Term Loan F [Member] | Tele Communication Services At Two point Zero Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [1],[2] | TerreStar Corp. | |||
Interest Rate | [1],[2] | 11%PIK | |||
Maturity Date | [1],[2] | Feb. 28, 2024 | |||
Principal Amount | [1],[2] | $ 193,108 | |||
Amortized Cost | [1],[2] | 193,108 | |||
Fair Value | [1],[2] | $ 191,988 | |||
First Lien Term Loan G [Member] | Tele Communication Services At Two Point Two Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | TerreStar Corp. | ||||
Interest Rate | [1],[7] | 11% PIK | |||
Base Rate Floor | [1],[7] | 0.00 | |||
Maturity Date | [1],[7] | Feb. 28, 2024 | |||
Principal Amount | [1],[7] | $ 35,457 | |||
Amortized Cost | [1],[7],[10] | 35,457 | |||
Fair Value | [1],[7] | $ 35,360 | |||
First Lien Term Loan G [Member] | Tele Communication Services At Two point Zero Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [1],[2] | TerreStar Corp. | |||
Interest Rate | [1],[2] | 11%PIK | |||
Maturity Date | [1],[2] | Feb. 28, 2024 | |||
Principal Amount | [1],[2] | $ 34,500 | |||
Amortized Cost | [1],[2] | 34,500 | |||
Fair Value | [1],[2] | $ 34,300 | |||
First Lien Term Loan H [Member] | Tele Communication Services At Two Point Two Percentage [Member] | Senior Secured Loans At Nineteen Point Six Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | TerreStar Corp. | ||||
Interest Rate | [1],[7] | 11% PIK | |||
Base Rate Floor | [1],[7] | 0.00 | |||
Maturity Date | [1],[7] | Feb. 28, 2024 | |||
Principal Amount | [1],[7] | $ 33,082 | |||
Amortized Cost | [1],[7],[10] | 33,082 | |||
Fair Value | [1],[7] | $ 32,991 | |||
First Lien Term Loan H [Member] | Tele Communication Services At Two point Zero Percentage [Member] | Senior Secured Loans At Twenty Six Point Zero Five Percent [Member] | TerreStar Corp. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [1],[2] | TerreStar Corp. | |||
Interest Rate | [1],[2] | 11%PIK | |||
Maturity Date | [1],[2] | Feb. 28, 2024 | |||
Principal Amount | [1],[2] | $ 32,189 | |||
Amortized Cost | [1],[2] | 32,189 | |||
Fair Value | [1],[2] | $ 32,002 | |||
[1]Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.[2]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Trustees (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $28,500,789 or 53.0% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2022.[3]Securities exempt from registration under Rule 144A of the Securities Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2022, these securities amounted to $2,421,875, or 4.5% of net assets.[4]Securities of collateralized loan obligations where an affiliate of the Adviser serves as collateral manager.[5]The investment is considered to be the equity tranche of the issuer.[6]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company (“BDC”), such as the Company, may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2022.[7]Represents fair value as determined by the Adviser (as defined in Note 1) pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,445,226 or 67.3% of net assets were fair valued under the Company’s valuation procedures as of March 31, 2023.[8]Securities exempt from registration under Rule 144A of the 1933 Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. As of March 31, 2023, these securities amounted to $2,248,059, or 4.4% of net assets.[9]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company (“BDC”), such as the Company, may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.9% of the Company’s total assets as of March 31, 2023.[10]Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.[11]The issuer is in default of its payment obligation, or is in danger of default.[12]The interest rate on these investments is subject to a base rate of 3-Month LIBOR, which at March 31, 2023 was 5.19%. The LIBOR rate used to calculate interest is the higher of the prevailing 3 month LIBOR rate in effect on the date of the quarterly reset, or the LIBOR base rate floor shown.[13]The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at March 31, 2023 was 4.51%[14]Represents an affiliated issuer. Assets with a total aggregate market value of $10,871,704, or 21.3% of net assets, were affiliated with the Company as of March 31, 2023. See Note 9.[15]The interest rate on these investments is subject to a base rate of 6-Month LIBOR, which at December 31, 2022 was 5.14%. The LIBOR rate used to calculate interest is the higher of the prevailing 6 month LIBOR rate in effect on the date of the semiannual reset, or the LIBOR base rate floor shown.[16]The interest rate on these investments is subject to a base rate of 3-Month LIBOR, which at December 31, 2022 was 4.77%. The LIBOR rate used to calculate interest is the higher of the prevailing 3 month LIBOR rate in effect on the date of the quarterly reset, or the LIBOR base rate floor shown.[17]The interest rate on these investments is subject to a base rate of 1-Month LIBOR, which at December 31, 2022 was 4.39%. The LIBOR rate used to calculate interest is the higher of the prevailing 1 month LIBOR rate in effect on the date of the monthly reset, or the LIBOR base rate floor shown. |
Schedule of Investments 1
Schedule of Investments 1 - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | ||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 48,731,529 | $ 53,293,715 | |
Common Stocks At Thirty Six Point Three Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | 19,514,684 | ||
LLC Interests At Eight Point Seven Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 4,689,242 | ||
Common Stocks At Twenty Seven Point Two Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | 13,883,249 | ||
LLC Interests At Nineteen Point Nine Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 10,164,439 | ||
Chemicals At Zero Point One Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | MPM Holdings, Inc [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [1] | MPM Holdings, Inc. | |
Shares | [1] | 8,500 | |
Amortized Cost | [1] | $ 17,000 | |
Fair Value | [1] | $ 42,500 | |
Chemicals At Zero Point One Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | MPM Holdings, Inc [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | MPM Holdings, Inc. | ||
Shares | [1] | 8,500 | |
Amortized Cost | [1],[2] | $ 17,000 | |
Fair Value | [1] | $ 42,500 | |
Service At Zero Point Zero Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | Wayne Services Legacy, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [3],[4],[5],[6] | Wayne Services Legacy Inc. | |
Shares | [1],[7],[8] | 237 | |
Amortized Cost | [2] | $ 253,404 | |
Fair Value | [1],[7],[8] | $ 2,269 | |
Service At Zero Point Zero Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | Wayne Services Legacy, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | Wayne Services Legacy Inc. | ||
Shares | [1],[7],[9] | 237 | |
Amortized Cost | [1],[2],[7],[9] | $ 253,404 | |
Fair Value | [1],[7],[9] | $ 2,268 | |
Energy At Three Point Zero Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | Quarternorth Energy, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | Quarternorth Energy, Inc. | ||
Shares | 11,534 | ||
Amortized Cost | $ 981,428 | ||
Fair Value | $ 1,591,692 | ||
Financials At Three Point Two Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | American Banknote Corp [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [1],[7],[8] | American Banknote Corp. | |
Shares | [1],[7],[8] | 750,000 | |
Amortized Cost | [1],[7],[8] | $ 2,062,500 | |
Fair Value | [1],[7],[8] | 1,732,500 | |
Real Estate At Eighteen Point Six Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 10,012,730 | ||
Real Estate At Eighteen Point Six Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | IQHQ, Inc [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [7],[8] | IQHQ, Inc. | |
Shares | [7],[8] | 100,000 | |
Amortized Cost | [7],[8] | $ 1,500,000 | |
Fair Value | [7],[8] | $ 2,359,000 | |
Real Estate At Eighteen Point Six Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | NexPoint Real Estate Finance, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [4] | Nexpoint Real Estate Finance, Inc. | |
Shares | [4] | 481,670 | |
Amortized Cost | [4] | $ 9,960,591 | |
Fair Value | [4] | $ 7,653,730 | |
Real Estate Investment Trust At One Point Nine Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | NexPoint Residential Trust, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [4],[5] | NexPoint Residential Trust, Inc. | |
Shares | [4],[5] | 23,409 | |
Amortized Cost | [2] | $ 698,189 | |
Fair Value | [4],[5] | $ 1,018,779 | |
Telecommunication Services At Nine Point Five Percentage [Member] | Common Stocks At Thirty Six Point Three Percent [Member] | TerreStar Corp.. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [1],[7],[8] | TerreStar Corp. | |
Shares | [1],[7],[8] | 14,035 | |
Amortized Cost | [2] | $ 1,599,990 | |
Fair Value | [1],[7],[8] | $ 5,114,214 | |
Consumer Products At Five Point Seven Percentage [Member] | LLC Interests At Eight Point Seven Percent [Member] | US Gaming, LLC [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [1],[7],[8] | US Gaming, LLC | |
Shares | [1],[7],[8] | 2,000 | |
Amortized Cost | [2] | $ 2,000,000 | |
Fair Value | [1],[7],[8] | 3,088,750 | |
Real Estate At Three Point Zero Percentage [Member] | LLC Interests At Eight Point Seven Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 1,600,492 | ||
Real Estate At Three Point Zero Percentage [Member] | LLC Interests At Eight Point Seven Percent [Member] | SFR WLIF III, LLC [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [4],[7],[8] | SFR WLIF III, LLC | |
Shares | [4],[7],[8] | 451,112 | |
Amortized Cost | [2] | $ 451,112 | |
Fair Value | [4],[7],[8] | $ 424,468 | |
Real Estate At Three Point Zero Percentage [Member] | LLC Interests At Eight Point Seven Percent [Member] | NexPoint Capital REIT, LLC [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | [4],[7],[8] | NexPoint Capital REIT, LLC | |
Shares | [4],[7],[8] | 100 | |
Amortized Cost | [2] | $ 1,215,000 | |
Fair Value | [4],[7],[8] | $ 1,176,024 | |
Financials At Three Point Four Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | American Banknote Corp [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | American Banknote Corp. | ||
Shares | [1],[7],[9] | 750,000 | |
Amortized Cost | [1],[2],[7],[9] | $ 2,062,500 | |
Fair Value | [1],[7],[9] | 1,732,500 | |
Real Estate At Eight Point Seven Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 4,422,263 | ||
Real Estate At Eight Point Seven Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | IQHQ, Inc [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | IQHQ, Inc. | ||
Shares | [7],[9] | 100,000 | |
Amortized Cost | [2],[7],[9] | $ 1,500,000 | |
Fair Value | [7],[9] | $ 2,359,000 | |
Real Estate At Eight Point Seven Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | NexPoint Real Estate Finance, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | Nexpoint Real Estate Finance, Inc. | ||
Shares | [10] | 131,670 | |
Amortized Cost | [2],[10] | $ 2,592,506 | |
Fair Value | [10] | $ 2,063,263 | |
Energy At Three Point Two Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | Quarternorth Energy, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | Quarternorth Energy, Inc. | ||
Shares | 11,534 | ||
Amortized Cost | [2] | $ 981,428 | |
Fair Value | $ 1,629,178 | ||
Real Estate Investment Trust At Two Point Zero Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | NexPoint Residential Trust, Inc. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | NexPoint Residential Trust, Inc. | ||
Shares | [10],[11] | 23,409 | |
Amortized Cost | [2],[10],[11] | $ 698,189 | |
Fair Value | [10],[11] | $ 1,022,291 | |
Telecommunication Services At Nine Point Eight Percentage [Member] | Common Stocks At Twenty Seven Point Two Percent [Member] | TerreStar Corp.. [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | TerreStar Corp. | ||
Shares | [1],[7],[9] | 14,035 | |
Amortized Cost | [1],[2],[7],[9] | $ 1,599,990 | |
Fair Value | [1],[7],[9] | $ 5,032,249 | |
Consumer Products At Five Point Six Percentage [Member] | LLC Interests At Nineteen Point Nine Percent [Member] | US Gaming, LLC [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | US Gaming, LLC | ||
Shares | [1],[7],[9] | 1,700 | |
Amortized Cost | [1],[2],[7],[9] | $ 1,700,000 | |
Fair Value | [1],[7],[9] | 2,841,603 | |
Real Estate At Fourteen Point Three Percentage [Member] | LLC Interests At Nineteen Point Nine Percent [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 7,322,836 | ||
Real Estate At Fourteen Point Three Percentage [Member] | LLC Interests At Nineteen Point Nine Percent [Member] | SFR WLIF III, LLC [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | SFR WLIF III, LLC | ||
Shares | [7],[9],[10] | 451,112 | |
Amortized Cost | [2],[7],[9],[10] | $ 451,111 | |
Fair Value | [7],[9],[10] | $ 418,181 | |
Real Estate At Fourteen Point Three Percentage [Member] | LLC Interests At Nineteen Point Nine Percent [Member] | NexPoint Capital REIT, LLC [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Portfolio Company | NexPoint Capital REIT, LLC | ||
Shares | [7],[9],[10] | 727 | |
Amortized Cost | [2],[7],[9],[10] | $ 8,583,085 | |
Fair Value | [7],[9],[10] | $ 6,904,655 | |
[1]Non-income producing security.[2]Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.[3]All investments are denominated in United States Dollars.[4]Represents an affiliated issuer. Assets with a total aggregate market value of $10,273,001, or 19.1% of net assets, were affiliated with the Company as of December 31, 2022. See Note 10.[5]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company (“BDC”), such as the Company, may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2022.[6]Unless otherwise noted, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned 25% or more of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. Additionally, companies under common control (e.g., companies with a common owner of greater than 25% of their respective voting securities) are affiliates under the 1940 Act.[7]Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.[8]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Trustees (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $28,500,789 or 53.0% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2022.[9]Represents fair value as determined by the Adviser (as defined in Note 1) pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,445,226 or 67.3% of net assets were fair valued under the Company’s valuation procedures as of March 31, 2023.[10]Represents an affiliated issuer. Assets with a total aggregate market value of $10,871,704, or 21.3% of net assets, were affiliated with the Company as of March 31, 2023. See Note 9.[11]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company (“BDC”), such as the Company, may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.9% of the Company’s total assets as of March 31, 2023. |
Schedule of Investments 2
Schedule of Investments 2 - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | ||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 48,731,529 | $ 53,293,715 | |||
Net Assets – 100.0% | 51,159,305 | 53,694,167 | |||
Warrants At Zero Point Three Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 162,811 | ||||
Preferred Stocks At Twenty Two Point Three Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 11,967,910 | ||||
Warrants At Zero Point Four Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 181,733 | ||||
Total Investment Ninety Nine Point Two [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Amortized Cost | [1] | 54,011,971 | |||
Fair Value | 53,293,715 | ||||
Cash Equivalents At Two Point Seven Percentage [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | [2] | 1,420,428 | |||
Other Assets Liabilities, net At One Point Eight Percentage [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | (1,019,976) | ||||
Preferred Stocks At Twenty Three Point Four Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | 11,981,888 | ||||
Total Investment Ninety Five Point Three [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Amortized Cost | 50,811,343 | ||||
Fair Value | 48,731,529 | ||||
Cash Equivalents At One Point Five Percentage [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | [2] | 773,826 | |||
Other Assets Liabilities Net At Three Point Two Percentage [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 1,653,950 | ||||
Financials At Two Point Seven Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 1,440,625 | ||||
Financials At Two Point Seven Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | 777 Partners, LLC [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | 777 Partners, LLC | |||
Preferred Dividend Rate | 10% | 10% | |||
Principal Amount | $ 750 | ||||
Amortized Cost | [1] | 750,000 | |||
Fair Value | $ 740,625 | ||||
Financials At Two Point Seven Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | United Fidelity Bank FSB [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | United Fidelity Bank FSB | |||
Preferred Dividend Rate | 7% | 7% | |||
Principal Amount | $ 1,000 | ||||
Amortized Cost | [1] | 1,000,000 | |||
Fair Value | $ 700,000 | ||||
Financials At Two Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 1,400,000 | ||||
Financials At Two Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | 777 Partners, LLC [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | 777 Partners, LLC | ||||
Principal Amount | $ 750 | ||||
Amortized Cost | 750,000 | ||||
Fair Value | $ 720,000 | ||||
Financials At Two Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | United Fidelity Bank FSB [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | United Fidelity Bank FSB | ||||
Principal Amount | $ 1,000 | ||||
Amortized Cost | 1,000,000 | ||||
Fair Value | $ 680,000 | ||||
Media And Telecommunications At Zero Point Zero Percentage [Member] | Warrants At Zero Point Three Percent [Member] | iHeartMedia, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | iHeartMedia, Inc. | ||||
Principal Amount | [5],[6] | $ 2,875 | |||
Amortized Cost | [1],[5],[6] | 52,987 | |||
Fair Value | [5],[6] | $ 10,063 | |||
Media And Telecommunications At Zero Point One Percentage [Member] | Warrants At Zero Point Four Percent [Member] | iHeartMedia, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | iHeartMedia, Inc. | |||
Maturity Date | [5],[7] | May 01, 2039 | |||
Principal Amount | [5],[7] | $ 2,875 | |||
Amortized Cost | [1] | 52,987 | |||
Fair Value | [5],[7] | 20,484 | |||
Healthcare At Ninteen Point Six Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 10,527,285 | ||||
Healthcare At Ninteen Point Six Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | Apnimed, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | Apnimed, Inc. | |||
Preferred Dividend Rate | [8] | 8% | [9] | 8% | [10] |
Principal Amount | [8],[10] | $ 135,122 | |||
Amortized Cost | [1] | 1,199,993 | |||
Fair Value | [8],[10] | 1,499,989 | |||
Energy At Zero Point Three Percentage [Member] | Warrants At Zero Point Three Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 152,748 | ||||
Energy At Zero Point Three Percentage [Member] | Warrants At Zero Point Three Percent [Member] | QuarterNorth Tranche 1 [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | QuarterNorth Tranche 1 | ||||
Principal Amount | [5] | $ 5,738 | |||
Amortized Cost | [1],[5] | 16,122 | |||
Fair Value | [5] | $ 58,815 | |||
Energy At Zero Point Three Percentage [Member] | Warrants At Zero Point Three Percent [Member] | QuarterNorth Tranche 2 [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | QuarterNorth Tranche 2 | ||||
Principal Amount | [5] | $ 11,051 | |||
Amortized Cost | [1],[5] | 5,175 | |||
Fair Value | [5] | 93,933 | |||
Energy At Zero Point Three Percentage [Member] | Warrants At Zero Point Four Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 161,249 | ||||
Energy At Zero Point Three Percentage [Member] | Warrants At Zero Point Four Percent [Member] | QuarterNorth Tranche 1 [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | QuarterNorth Tranche 1 | |||
Maturity Date | [5] | Aug. 27, 2029 | |||
Principal Amount | [5] | $ 5,738 | |||
Amortized Cost | [1] | 16,122 | |||
Fair Value | [5] | $ 64,553 | |||
Energy At Zero Point Three Percentage [Member] | Warrants At Zero Point Four Percent [Member] | QuarterNorth Tranche 2 [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | QuarterNorth Tranche 2 | |||
Maturity Date | [5] | Aug. 27, 2029 | |||
Principal Amount | [5] | $ 11,051 | |||
Amortized Cost | [1] | 5,175 | |||
Fair Value | [5] | $ 96,696 | |||
Healthcare At Twenty Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Fair Value | $ 10,581,888 | ||||
Healthcare At Twenty Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | Apnimed, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Apnimed, Inc. | ||||
Principal Amount | [8],[9] | $ 135,122 | |||
Amortized Cost | [1],[8],[9] | 1,199,994 | |||
Fair Value | [8],[9] | $ 1,499,989 | |||
Series B Preferred Stock [Member] | Healthcare At Ninteen Point Six Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | Sapience Therapeutics, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | Sapience Therapeutics, Inc. | |||
Preferred Dividend Rate | [8] | 8% | [9] | 8% | [10] |
Principal Amount | [8],[10] | $ 1,619,048 | |||
Amortized Cost | [1] | 4,080,000 | |||
Fair Value | [8],[10] | $ 4,549,525 | |||
Series B Preferred Stock [Member] | Healthcare At Twenty Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | Sapience Therapeutics, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Sapience Therapeutics, Inc. | ||||
Principal Amount | [8],[9] | $ 1,619,048 | |||
Amortized Cost | [1],[8],[9] | 4,080,000 | |||
Fair Value | [8],[9] | $ 4,581,906 | |||
SeriesB1Preferred Shares [Member] | Healthcare At Ninteen Point Six Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | Sapience Therapeutics, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | Sapience Therapeutics, Inc. | |||
Principal Amount | [8],[10] | $ 1,111,111 | |||
Amortized Cost | [1] | 4,000,000 | |||
Fair Value | [8],[10] | $ 3,677,777 | |||
SeriesB1Preferred Shares [Member] | Healthcare At Twenty Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | Sapience Therapeutics, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Sapience Therapeutics, Inc. | ||||
Preferred Dividend Rate | [8],[9] | 8% | |||
Principal Amount | [8],[9] | $ 1,111,111 | |||
Amortized Cost | [1],[8],[9] | 4,000,000 | |||
Fair Value | [8],[9] | $ 3,700,000 | |||
Series C2 [Member] | Healthcare At Ninteen Point Six Percentage [Member] | Preferred Stocks At Twenty Two Point Three Percent [Member] | Apnimed, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | [3],[4] | Apnimed, Inc. | |||
Preferred Dividend Rate | [8] | 8% | [9] | 8% | [10] |
Principal Amount | [8],[10] | $ 72,065 | |||
Amortized Cost | [1] | 799,994 | |||
Fair Value | [8],[10] | $ 799,994 | |||
Series C2 [Member] | Healthcare At Twenty Point Seven Percentage [Member] | Preferred Stocks At Twenty Three Point Four Percent [Member] | Apnimed, Inc. [Member] | |||||
Summary of Investment Holdings [Line Items] | |||||
Portfolio Company | Apnimed, Inc. | ||||
Principal Amount | [8],[9] | $ 72,065 | |||
Amortized Cost | [1],[8],[9] | 799,993 | |||
Fair Value | [8],[9] | $ 799,993 | |||
[1]Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.[2]State Street U.S. Government Money Market Fund.[3]All investments are denominated in United States Dollars.[4]Unless otherwise noted, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned 25% or more of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. Additionally, companies under common control (e.g., companies with a common owner of greater than 25% of their respective voting securities) are affiliates under the 1940 Act.[5]Non-income producing security.[6]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company (“BDC”), such as the Company, may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.9% of the Company’s total assets as of March 31, 2023.[7]The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company (“BDC”), such as the Company, may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 4.8% of the Company’s total assets as of December 31, 2022.[8]Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.[9]Represents fair value as determined by the Adviser (as defined in Note 1) pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,445,226 or 67.3% of net assets were fair valued under the Company’s valuation procedures as of March 31, 2023.[10]Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Trustees (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $28,500,789 or 53.0% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2022. |
Schedule of Investments (Parent
Schedule of Investments (Parenthentical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Percentage of Non Qualifying Asset on Company's total asset | 4.90% | 4.80% |
Percentage of Net Assets under valuation procedure | 4.40% | |
Equity Method Investments | $ 2,248,059 | |
Affiliated Entity [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of Net Assets under valuation procedure | 21.30% | 19.10% |
Equity Method Investments | $ 10,871,704 | $ 10,273,001 |
Restricted Securities [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of Net Assets under valuation procedure | 4.50% | |
Equity Method Investments | $ 2,421,875 | |
Board of Directors [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Percentage of Net Assets under valuation procedure | 67.30% | 53% |
Equity Method Investments | $ 34,445,226 | $ 28,500,789 |
Base Rate of 6 Month LIBOR [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investment owned ,Interest Rates | 5.14% | |
Base Rate of 3 Month LIBOR [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investment owned ,Interest Rates | 5.19% | 4.77% |
Base Rate of 1 Month LIBOR [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investment owned ,Interest Rates | 4.39% | |
Base Rate of 3 Month SOFR [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Investment owned ,Interest Rates | 4.51% | |
Maximum [Member] | Equity Method Investee Controlling Investment [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Equity method investments ownership percentage | 5% | 25% |
Minimum [Member] | Equity Method Investee Controlling Investment [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Equity method investments ownership percentage | 25% | |
Minimum [Member] | Equity Method Investee Affiliated Investments [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Equity method investments ownership percentage | 5% |
Organization
Organization | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1 — Organization NexPoint Capital, Inc. (the “Company”) is an externally managed, non-diversified, closed-end Financial Services—Investment Companies. non-healthcare The Company was formed in Delaware on September 30, 2013 and formally commenced operations on September 2, 2014 upon satisfying the minimum offering requirement by raising gross proceeds of $10.0 million in connection with a private placement with NexPoint Advisors, L.P. (the “Adviser”), our external advisor. In aggregate as of March 31, 2023, the Adviser controls 2,549,002 total shares of common stock (or 26.7%) of the Company, including reinvestment of dividends, for a net amount of approximately $13.7 million. The Company has retained the Adviser to manage certain aspects of its affairs on a day-to-day |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Accounting The accompanying financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q S-X. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Statements of Cash Flows Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Statements of Cash Flows. The cash amount shown in the Statements of Cash Flows is the amount included within the Company’s Statements of Assets and Liabilities and includes cash on hand at its custodian bank. Cash and Cash Equivalents The Company considers liquid assets deposited with a bank, money market funds, and certain short-term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Company expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates fair value. The value of cash equivalents denominated in foreign currencies, if any, is determined by converting to U.S. dollars on the date of the Statements of Assets and Liabilities. As of March 31, 2023 and December 31, 2022, the Company had cash and cash equivalents of $1,131,784 and $1,629,846, respectively. As of March 31, 2023 and December 31, 2022, $773,826 and $1,420,428 was held in the State Street U.S. Government Money Market Fund, and $357,958 and $209,418 was held in a custodial account with State Street Bank and Trust Company, respectively. Securities Sold Short and Restricted Cash The Company may sell securities short. A security sold short is a transaction in which the Company sells a security it does not own in anticipation that the market price of that security will decline. When the Company sells a security short, it must borrow the security sold short from a broker-dealer and deliver it to the buyer upon conclusion of the transaction. The Company may have to pay a fee to borrow particular securities and is often obligated to pay over any dividends or other payments received on such borrowed securities. Cash held as collateral for securities sold short is classified as restricted cash on the Statements of Assets and Liabilities, when applicable. Securities held as collateral for securities sold short are shown on the Schedules of Investments for the Company, as applicable. As of March 31, 2023 and December 31, 2022, the Company did not have any securities sold short. When securities are sold short, the Company intends to limit exposure to a possible market decline in the value of its portfolio companies through short sales of securities that the Adviser believes possess volatility characteristics similar to those being hedged. In addition, the Company may use short sales for non-hedging Other Fee Income Fee income may consist of origination/closing fees, amendment fees, administrative agent fees, transaction break-up non-recurring Fair Value of Financial Instruments It is the Company’s policy to hold the investments at fair value. ASC Topic 820, Fair Value Measurements and Disclosure Pursuant to Rule 2a-5 2a-5 With respect to investments for which market quotations are not readily available, the Adviser undertakes a multi-step valuation process each quarter, as described below: • The valuation process begins with each portfolio company or investment being initially valued by investment professionals of the Adviser responsible for credit monitoring or independent third party valuation firms. • Preliminary valuation conclusions are then documented and discussed with a committee comprised of certain senior management employees of the Adviser (the “Valuation Committee”) established by the Adviser to assist the Adviser in discharging its responsibilities as valuation designee. • At least once each quarter, the valuations for approximately one quarter of the portfolio investments that have been fair valued are reviewed by an independent valuation firm such that, over the course of a year, each material portfolio investment that has been fair valued shall have been reviewed by an independent valuation firm at least once. • Based on this information, the Adviser discusses valuations and determines the fair value of each investment in the portfolio in good faith pursuant to board-approved policies and procedures. As of March 31, 2023, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,267 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 TerreStar Corp. Common Stocks 5,032,249 Wayne Services Legacy, Inc. Common Stocks 2,268 NexPoint Capital REIT, LLC LLC Interests 6,904,655 SFR WLIF III, LLC LLC Interests 418,181 US Gaming, LLC LLC Interests 2,841,603 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,993 Sapience Therapeutics, Inc. Preferred Stocks 4,581,906 Sapience Therapeutics, Inc. Preferred Stocks 3,700,000 CCS Medical, Inc. Senior Secured Loans 3,000,000 NexPoint Capital REIT , LLC Senior Secured Loans 463,314 TerreStar Corp. Senior Secured Loans 836,016 TerreStar Corp. Senior Secured Loans 197,921 TerreStar Corp. Senior Secured Loans 35,360 TerreStar Corp. Senior Secured Loans 32,991 As of December 31, 2022, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,023 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 TerreStar Corp. Common Stocks 5,114,214 Wayne Services Legacy, Inc. Common Stocks 2,269 NexPoint Capital REIT, LLC LLC Interests 1,176,024 SFR WLIF III, LLC LLC Interests 424,468 US Gaming, LLC LLC Interests 3,088,750 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,994 Sapience Therapeutics, Inc. Preferred Stocks 4,549,525 Sapience Therapeutics, Inc. Preferred Stocks 3,677,777 CCS Medical, Inc. Senior Secured Loans 3,000,000 TerreStar Corp. Senior Secured Loans 810,953 TerreStar Corp. Senior Secured Loans 191,988 TerreStar Corp. Senior Secured Loans 34,300 TerreStar Corp. Senior Secured Loans 32,002 Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to the Company’s financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, in the Company’s financial statements. Below is a description of factors that the Adviser and the Valuation Committee may consider when valuing the Company’s debt and equity investments. Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted cash flow models to arrive at fair value. Other factors that the Adviser and the Valuation Committee may consider include the borrower’s ability to adequately service its debt, the fair market value of the portfolio company in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The Company’s equity investments in portfolio companies for which there is no liquid public market will be valued at fair value. The Adviser and the Valuation Committee, in its analysis of fair value, may consider various factors, such as multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues or, in limited instances, book value or liquidation value. All of these factors may be subject to adjustments based upon the particular circumstances of a portfolio company or the Company’s actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners or acquisition, recapitalization, restructuring or other related items. The Adviser and the Valuation Committee may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. The Adviser and the Valuation Committee may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors it deems relevant in assessing the value. Generally, the value of the Company’s equity interests in public companies for which market quotations are readily available will be based upon the most recent closing public market price. If the Company receives warrants or other equity-linked securities at nominal or no additional cost in connection with an investment in a debt security, the Company will allocate the cost basis in the investment between the debt securities and any such warrants or other equity-linked securities received at the time of origination. The Adviser and the Valuation Committee will subsequently value these warrants or other equity-linked securities received at fair value. As applicable, the Company values its Level 2 assets by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which is provided by an independent third-party pricing service and screened for validity by such service. For investments for which the third-party pricing service is unable to obtain quoted prices, the Company obtains bid and ask prices directly from dealers who make a market in such investments. To the extent that the Company holds investments for which no active secondary market exists and, therefore, no bid and ask prices can be readily obtained, the Adviser and the Valuation Committee utilize an independent third-party valuation service to value such investments in a manner consistent with the Company’s multistep valuation process previously described. The Company periodically benchmarks the bid and ask prices received from the third-party pricing service and/or dealers, as applicable, and valuations received from the third-party valuation service against the actual prices at which it purchases and sells its investments. The Company believes that these prices are reliable indicators of fair value. The Adviser and the Valuation Committee review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation procedures. As of March 31, 2023, the Company’s investments consisted of senior secured loans, asset-backed securities, common stocks, LLC interests, preferred stocks, corporate bonds, and warrants, which may be purchased for a fraction of the price of the underlying securities. The fair value of the Company’s loans, bonds and asset-backed securities are generally based on quotes received from brokers or independent pricing services. Loans, bonds and asset-backed securities with quotes that are based on actual trades with a sufficient level of activity on or near the measurement date are classified as Level 2 assets. Loans, bonds and asset-backed securities that are priced using quotes derived from implied values, indicative bids or a limited number of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. The fair value of the Company’s common stocks and options that are not actively traded on national exchanges are generally priced using quotes derived from implied values, indicative bids, or a limited amount of actual trades and are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. Exchange traded options are valued based on the last trade price on the primary exchange on which they trade. If an option does not trade, the mid-price At the end of each calendar quarter, the Adviser evaluates the Level 2 and 3 investments for changes in liquidity, including: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market price, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of 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 the Company may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following are summaries of the Company’s investments categorized within the fair value hierarchy as of March 31, 2023 and December 31, 2022: March 31, 2023 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 5,466,015 $ 3,000,000 $ 8,466,015 Real Estate — — 463,314 463,314 Telecommunication Services — — 1,102,288 1,102,288 Asset-Backed Securities Financials — — 7,280 7,280 Corporate Bonds Healthcare — 2,240,779 — 2,240,779 Media/Telecommunications — 259,466 — 259,466 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,629,178 — 1,629,178 Financials — — 1,732,500 1,732,500 Real Estate 2,063,263 — 2,359,000 4,422,263 Real Estate Investment Trusts (REITs) 1,022,291 — — 1,022,291 Service — — 2,268 2,268 Telecommunication Services — — 5,032,249 5,032,249 LLC Interests Consumer Products — — 2,841,603 2,841,603 Real Estate — — 7,322,836 7,322,836 Preferred Stocks Financials — 1,400,000 — 1,400,000 Healthcare — — 10,581,888 10,581,888 Warrants Energy — 152,748 — 152,748 Media/Telecommunications — 10,063 — 10,063 Total Assets $ 3,085,554 $ 11,200,749 $ 34,445,226 $ 48,731,529 Total Investments $ 3,085,554 $ 11,200,749 $ 34,445,226 $ 48,731,529 December 31, 2022 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 10,158,950 $ 3,000,000 $ 13,158,950 Telecommunication Services — — 1,069,243 1,069,243 Asset-Backed Securities Financials — — 7,036 7,036 Corporate Bonds Healthcare — 2,414,839 — 2,414,839 Media/Telecommunications — 290,078 — 290,078 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,591,692 — 1,591,692 Financials — — 1,732,500 1,732,500 Real Estate 7,653,730 — 2,359,000 10,012,730 Real Estate Investment Trusts (REITs) 1,018,779 — — 1,018,779 Service — — 2,269 2,269 Telecommunication Services — — 5,114,214 5,114,214 LLC Interests Consumer Products — — 3,088,750 3,088,750 Real Estate — — 1,600,492 1,600,492 Preferred Stocks Financials — 1,440,625 — 1,440,625 Healthcare — — 10,527,285 10,527,285 Warrants Energy — 161,249 — 161,249 Media/Telecommunications — 20,484 — 20,484 Total Assets $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 Total Investments $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the three months ended March 31, 2023. The table below includes noncash transactions for the three months ended March 31, 2023. Investments: Balance as of Transfers Transfer Net Distribution Net realized Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 1,069,243 $ — $ — $ — $ — $ — $ 3,198 $ 29,847 $ — $ 1,102,288 $ 3,198 Healthcare 3,000,000 — — 4,465 — — (4,465 ) — — 3,000,000 (4,465 ) Real Estate — — — — — — — 463,314 — 463,314 — Asset-Backed Securities Financials 7,036 — — — — — 244 — — 7,280 244 Common Stocks Financials 1,732,500 — — — — — — — — 1,732,500 — Real Estate 2,359,000 — — — — — — — — 2,359,000 — Service 2,269 — — — — — — — — 2,268 — Telecommunication Services 5,114,214 — — — — — (81,965 ) — — 5,032,249 (81,965 ) LLC Interests Consumer Products 3,088,750 — — — — 163,314 52,853 — (463,314 ) 2,841,603 52,853 Real Estate 1,600,492 — — — — — (1,645,741 ) 7,368,085 (1) — 7,322,836 (1,645,741 ) Preferred Stocks Healthcare 10,527,285 — — — — — 54,603 — — 10,581,888 54,603 Total $ 28,500,789 $ — $ — $ 4,465 $ — $ 163,314 $ (1,621,273 ) $ 7,861,246 $ (463,314 ) $ 34,445,226 $ (1,621,273 ) (1) Represents an in-kind transfer to the subreit. The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the three months ended March 31, 2022. Investments: Balance as of Transfers Transfer Net Distribution Net realized Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 962,478 $ — $ — $ — $ — $ — $ — $ 26,711 $ — $ 989,189 $ — Healthcare 4,000,000 — — 3,809 — — 86,191 2,990,000 (4,080,000 )(a) 3,000,000 86,191 Asset-Backed Securities Financials 405,040 — — — — — 11,787 — (16,979 ) 399,848 11,787 Common Stocks Financials 2,208,750 — — — — — (603,450 ) — — 1,605,300 (603,450 ) Real Estate 1,823,000 — — — — — 141,000 — — 1,964,000 141,000 Service 5,172 — — — — — — — — 5,172 — Telecommunication Services 4,706,357 — — — — — (94,456 ) — — 4,611,901 (94,456 ) LLC Interests Consumer Products 2,812,212 — — — — — 169,426 — — 2,981,638 169,426 Real Estate 4,760,162 — — — — (74,603 ) 139,367 — (3,274,285 )(b) 1,550,641 (13,275 ) Preferred Stocks Healthcare — — — — — — — 8,080,000 (a) — 8,080,000 — Total $ 21,683,171 $ — $ — $ 3,809 $ — $ (74,603 ) $ (150,135 ) $ 11,096,711 $ (7,371,264 ) $ 25,187,689 $ (302,777 ) (a) Denotes Sapience’s $4,080,000 promissory notes and paid in kind interest conversion to preferred stock. (b) Denotes SFR II’s LLC Interests conversion into NREF common shares. Investments designated as Level 3 may include investments valued using quotes or indications furnished by brokers which are based on models or estimates and may not be executable prices. In light of the developing market conditions, the Adviser continues to search for observable data points and evaluate broker quotes and indications received for investments. Determination of fair values is uncertain because it involves subjective judgments and estimates that are unobservable. Transfers from Level 2 to Level 3 are due to a decrease in market activity (e.g. frequency of trades), which resulted in a decrease of available market inputs to determine price. For the three months ended March 31, 2023, there were no transfers from Level 2 to Level 3. For the three months ended March 31, 2022, there were no transfers from Level 2 to Level 3. Transfers from Level 3 to Level 2 and from Level 2 to Level 1 are due to an increase in market activity (e.g. frequency of trades), which resulted in an increase of available market inputs to determine price. The following are summaries of significant unobservable inputs used in the fair valuations of investments categorized within Level 3 of the fair value hierarchy as of March 31, 2023 and December 31, 2022: Investment Fair value at March 31, 2023 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 10,164,438 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.98% - 9.18% (7.08%) 5.60x - 9.95x ( 7.70 Preferred Stock 10,581,888 Option Pricing Model Volatility 40% - 90% (65%) Common Stock 9,126,018 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 11.0% - 13.0% (12.0%) 3.25x - 4.25x ( $0.09 - $0.95 ($0.52) $921.5 40% - 100% $28 Senior Secured Loans 4,565,602 Discounted Cash Flow Discount Rate 10.25% - 13.06% (11.40%) Asset-Backed Securities 7,280 NAV Approach Discount Rate 70.00% Total $ 34,445,226 Investment Fair value at December 31, 2022 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 4,689,242 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.73% - 8.93% (6.83%) 5.55x - 9.85x (7.70x) Preferred Stock 10,527,285 Option Pricing Model Transaction Indication of Value Volatility Recap Price 40% - 60% (50%) $11.10 Common Stock 9,207,983 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 13.50% - 15.50% (14.50%) 3.25x - 4.25x (3.75x) $0.09 - $0.95 ($0.52) $872 - $969 ($920.5) 40% - 100% (70%) $28 Senior Secured Loans 4,069,243 Discounted Cash Flow Discount Rate 10.25% - 13.08% (11.67%) Asset-Backed Securities 7,036 NAV Approach Discount Rate 70.00% Total $ 28,500,789 The significant unobservable inputs used in the fair value measurement of the Company’s LLC interests are: discount rate and multiples of EBITDA. Significant increases (decreases) in those inputs in isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s common equity securities are: multiple of EBITDA, price/MHz-PoP The significant unobservable inputs used in the fair value measurement of the Company’s asset-backed securities are: discount rate and broker quote indication of value. Significant increases (decreases) in either of those inputs in isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable input used in the fair value measurement of the Company’s warrant securities is: volatility assumption. Significant increases (decreases) in this input in isolation could result in a significantly lower (higher) fair value measurement. Derivative Transactions The Company is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Company may invest without limitation in warrants and may also use derivatives, primarily swaps (including equity, variance and volatility swaps), options and futures contracts on securities, interest rates, commodities and/or currencies, as substitutes for direct investments the Company can make. The Company may also use derivatives such as swaps, options (including options on futures), futures, and foreign currency transactions (e.g., foreign currency swaps, futures and forwards) to any extent deemed by the Adviser to be in the best interest of the Company, and to the extent permitted by the 1940 Act, to hedge various investments for risk management and speculative purposes. Options The Company purchases options, subject to certain limitations. The Company may invest in options contracts to manage its exposure to the stock and bond markets and fluctuations in foreign currency values. Writing puts and buying calls tend to increase the Company’s exposure to the underlying instrument while buying puts and writing calls tend to decrease the Company’s exposure to the underlying instrument, or economically hedge other Company investments. The Company’s risks in using these contracts include changes in the value of the underlying instruments, nonperformance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Options are valued at the last sale price, or if no sales occurred on that day, at the last quoted bid price. As of and during the three months ended March 31, 2023 and 2022, the Company did not hold options. Investment Transactions Investment transactions are accounted for on trade date. Realized gains (losses) on investments sold are recorded on the basis of specific identification method for both financial statement and U.S. federal income tax purposes. Payable for investments purchased and receivable for investments sold on the Statements of Assets and Liabilities, if any, represents the cost of purchases and proceeds from sales of investment securities, respectively, for trades that have been executed but not yet settled. Income Recognition Corporate actions (including cash dividends from common stock and equity tranches of asset-backed securities) are recorded on the ex-dividend ex-dividend (payment-in-kind) Accretion of discounts and amortization of premiums on taxable bonds, loans and asset-backed securities are computed to the call or maturity date, whichever is shorter, using the effective yield method. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates. Organization and Offering Costs Organization costs are paid by the Adviser and include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization. Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock and are also paid by the Adviser. Prior to the termination of the offering, as we raised proceeds, these organization and offering costs were expensed and became payable to the Adviser. Organization and offering costs are limited to 1% of total gross proceeds raised and are not due and payable to the Adviser to the extent they exceed that amount. Please refer to Note 4 for additional information on Organization and Offering Costs. Paid-in The proceeds from the issuance of common stock as presented on the Company’s Statements of Changes in Net Assets is presented net of selling commissions and fees for the three months ended March 31, 2023 and March 31, 2022. Selling commissions and fees of $0 and $0 were paid for the three months ended March 31, 2023 and March 31, 2022, respectively. Earnings Per Share In accordance with the provisions of ASC Topic 260— Earnings per Share The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations: For the three months ended 2023 2022 Net increase (decrease) in net assets resulting from operations $ (977,817 ) $ 1,145,017 Weighted average common shares outstanding 9,699,655 9,990,797 Earnings (loss) per common share-basic and diluted $ (0.10 ) $ 0.11 Distributions Distributions to the Company’s stockholders will be recorded as of the record date. Subject to the discretion of the Board and applicable legal restrictions, the Company intends to authorize and declare ordinary cash distributions on a weekly basis and pay such distributions on a quarterly basis. Net realized capital gains, if any, will generally be distributed or deemed distributed at least every 12-month On June 24, 2020, the Board approved a change in its dividend and capital gains distribution schedule from monthly distributions to quarterly distributions, effective immediately. The first quarterly distribution was paid on October 12, 2020 to shareholders of record as of September 30, 2020. The dividends are expected to be declared in the amount of $0.09 per share of the Company’s common stock to the stockholders of record at each quarter end. Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, No. 2020-04 No. 2020-04. |
Investment Portfolio
Investment Portfolio | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of Investments [Abstract] | |
Investment Portfolio | Note 3 — Investment Portfolio The following table shows the composition of the Company’s invested assets by industry classification at fair value at March 31, 2023: Fair value Percentage Assets Healthcare $ 21,288,682 43.7 % Real Estate 12,208,413 25.0 % Telecommunication Services 6,134,537 12.6 % Financials 3,139,780 6.4 % Consumer Products 2,841,603 5.8 % Energy 1,781,926 3.7 % Real Estate Investment Trusts (REITs) 1,022,291 2.1 % Media/Telecommunications 269,529 0.6 % Chemicals 42,500 0.1 % Service 2,268 0.0 % Total Assets $ 48,731,529 100.0 % The following table shows the composition of the Company’s invested assets by industry classification at fair value at December 31, 2022: Fair value Percentage Assets Healthcare $ 26,101,074 49.0 % Real Estate 11,613,222 21.7 % Telecommunication Services 6,183,457 11.6 % Consumer Products 3,088,750 5.8 % Financials 3,180,161 6.0 % Energy 1,752,941 3.3 % Real Estate Investment Trusts (REITs) 1,018,779 1.9 % Media/Telecommunications 310,562 0.6 % Chemicals 42,500 0.1 % Service 2,269 0.0 % Total Assets $ 53,293,715 100.0 % The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of March 31, 2023: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 13,218,569 $ 8,961,395 18.4 % Senior Secured Loans - Second Lien 1,485,503 1,070,222 2.2 % Asset-Backed Securities 388,541 7,280 0.0 % Corporate Bonds 3,375,246 2,500,245 5.1 % Common Stocks 9,705,017 13,883,249 28.5 % LLC Interests 10,734,196 10,164,439 20.9 % Preferred Stocks 11,829,987 11,981,888 24.6 % Warrants 74,284 162,811 0.3 % Total Assets $ 50,811,343 $ 48,731,529 100.0 % The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of December 31, 2022: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 14,645,106 $ 11,575,821 21.7 % Senior Secured Loans - Second Lien 2,976,056 2,652,372 5.0 % Asset-Backed Securities 388,541 7,036 0.0 % Corporate Bonds 3,358,783 2,704,917 5.1 % Common Stocks 17,073,102 19,514,684 36.6 % LLC Interests 3,666,112 4,689,242 8.8 % Preferred Stocks 11,829,987 11,967,910 22.5 % Warrants 74,284 181,733 0.3 % Total Assets $ 54,011,971 $ 53,293,715 100.0 % The following table shows the composition of the Company’s invested assets by geographic classification at March 31, 2023: Geography Fair value Percentage Assets Cayman Islands (1) $ 7,280 0.0 % Luxembourg (1) 1,331,038 2.7 % United States 47,393,211 97.3 % Total Assets $ 48,731,529 100.0 % (1) Investment denominated in USD . The following table shows the composition of the Company’s invested assets by geographic classification at December 31, 2022: Geography Fair value Percentage Assets Cayman Islands (1) $ 7,036 0.0 % Luxembourg (1) 1,318,346 2.5 % United States 51,968,333 97.5 % Total Assets $ 53,293,715 100.0 % (1) Investment denominated in USD. |
Related Party Transactions and
Related Party Transactions and Arrangements | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | Note 4 — Related Party Transactions and Arrangements Investment Advisory Fee Payments for investment advisory services under the Company’s investment advisory agreement (the “Investment Advisory Agreement”) and administrative services agreement (the “Administration Agreement”) are equal to (a) a base management fee calculated at an annual rate of 2.0% of the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters and (b) an incentive fee based on the Company’s performance. Effective June 5, 2017, the Investment Advisory Agreement and the Administration Agreement were amended to exclude cash and cash equivalents from the calculation of gross assets for the purpose of calculating investment advisory and administration fees. For the three months ended March 31, 2023 and March 31, 2022, the Company incurred investment advisory fees payable to the Adviser of $265,381 and $299,270, respectively. Amounts waived for investment advisory fees or administrative fees pertaining to periods prior to June 10, 2016 are not recoupable, but amounts waived for investment advisory fees or administrative fees pertaining to periods from and after June 10, 2016 are subject to recoupment by the Adviser within three years from the date that such fees were otherwise payable, provided that the recoupment will be limited to the amount of such voluntarily waived fees from and after June 10, 2016 and will not cause the sum of the Company’s investment advisory fees, administration fees, Other Expenses (as defined under “Expense Limits and Reimbursements” below), and any recoupment to exceed the annual rate of 3.40% of average gross assets. Effective December 20, 2017, the Adviser ended its voluntary waiver of advisory fees. Incentive Fee The incentive fee consists of two parts. The first part, which is referred to as the subordinated incentive fee on income, is calculated and payable quarterly in arrears, and equals 20.0% of “pre-incentive pre-incentive pre-incentive “catch-up” pre-incentive pre-incentive “catch-up” pre-incentive The second part of the incentive fee, which is referred to as the incentive fee on capital gains, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). This fee equals 20.0% of the Company’s incentive fee capital gains, which will equal the Company’s realized capital gains on a cumulative basis from formation, calculated as of the end of the applicable period, computed net of all realized capital losses (proceeds less amortized cost) and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. The Company will accrue for the capital gains incentive fee, which, if earned, will be paid annually. The Company will accrue for the capital gains incentive fee based on net realized and unrealized gains; however, under the terms of the Investment Advisory Agreement, the fee payable to the Adviser will be based on realized gains and no such fee will be payable with respect to unrealized gains unless and until such gains are actually realized. For the three months ended March 31, 2023 and March 31, 2022, the Company incurred $0 and recognized a reduction $0 of incentive fees on capital gains, respectively. Since inception, the Company has accrued $0 of incentive fees on capital gains in aggregate. Effective December 20, 2017, the Adviser ended its voluntary waiver of incentive fees. No such fees have been paid with respect to realized gains to the Adviser as of March 31, 2023. Administration Fee Pursuant to the Administration Agreement with the Adviser, the Company also reimburses the Adviser for expenses necessary for its performance of services related to the Company’s administration and operations. The amount of the reimbursement will be the lesser of (1) the Company’s allocable portion of overhead and other expenses incurred by the Adviser in performing its obligations under the Administration Agreement and (2) 0.40% of the Company’s average gross assets, (excluding cash and cash equivalents). The Adviser is required to allocate the cost of such services to the Company based on objective factors such as assets, revenues, time allocations and/or other reasonable metrics. The Board assesses the reasonableness of such reimbursements based on the breadth, depth and quality of such services as compared to the estimated cost to the Company of obtaining similar services from third-party service providers known to be available. In addition, the Board will consider whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, the Board will compare the total amount paid to the Adviser for such services as a percentage of the Company’s net assets to the same ratio as reported by other comparable BDCs. For the three months ended March 31, 2023 and March 31, 2022, the Company incurred administration fees payable to the Adviser of $52,321 and $59,601, respectively. Amounts waived for management fees or administrative services expenses pertaining to periods prior to June 10, 2016 are not recoupable, but amounts waived for management fees or administrative services, expenses pertaining to periods from and after June 10, 2016 are subject to recoupment by the Adviser within three years from the date that such fees were otherwise payable, provided that the recoupment will be limited to the amount of such voluntarily waived fees from and after June 10, 2016 and will not cause the sum of the Company’s advisory fees, administration fees, Other Expenses, and any recoupment to exceed the annual rate of 3.40% of average gross assets. Effective December 20, 2017, the Adviser ended its voluntary waiver of administration fees. Organization and Offering Costs Organization costs include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization, and are paid by the Adviser. For the three months ended March 31, 2023 and March 31, 2022, the Adviser did not incur or pay organization costs on our behalf. Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock, and are capitalized and amortized to expense over one year. The Company’s continuous public offering ended on February 14, 2018. Organization costs and offering costs are limited to 1% of total gross proceeds raised in the offering and are not due and payable to the Adviser to the extent they exceed that amount. As of March 31, 2023, the cumulative aggregate amount of $5,327,574 of organization and offering costs exceeds 1% of total proceeds raised. Subsequent to the termination of the offering, the Adviser forfeited the right to reimbursement of the remaining $4,305,091 of these costs. Fees Paid to Officers and Directors Each director who oversees all of the portfolios in the Fund Complex (as defined below) receives an annual retainer of $ out-of-pocket For the three months ended March 31, 2023 and March 31, 2022, the Company recorded an expense relating to director fees of $4,967 and $3,731, respectively, which represents the allocation of the director fees to the Company. As of March 31, 2023, there was no expenses payable relating to director fees. Expense Limits and Reimbursements Pursuant to an expense limitation agreement, the Adviser is contractually obligated to waive fees and, if necessary, pay or reimburse certain other expenses to limit the ordinary “Other Expenses” to 1.0% of the quarter-end one-year 4 Any expenses waived or reimbursed by the Adviser pursuant to the Expense Limitation Agreement are subject to possible recoupment by the Adviser within three years from the date of the waiver or reimbursement. The recoupment by the Adviser will be limited to the amount of previously waived or reimbursed expenses and cannot cause the Company’s expenses to exceed any expense limitation in place at the time of recoupment or waiver. Reimbursable Expenses Table The cumulative total of fees waived by the Adviser under the Expense Limitation Agreement, which are recoupable as of March 31, 2023 is $919,754. This balance, and the balances in the tables below, only include amounts pertaining to the Expense Limitation Agreement, and do not include waived advisory and administration fees subject to recoupment discussed earlier in Note 4. The following table reflects the fee waivers and expense reimbursements due from the Adviser as of March 31, 2023, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative other expense Yearly expense limitation Yearly cumulative Quarterly Recoupment eligibility March 31, 2023 $ 208,486 $ 126,628 $ 81,858 $ 81,858 March 31, 2026 Period ended Yearly cumulative other expense Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2022 $ 913,273 $ 535,679 $ 377,594 $ 92,216 December 31, 2025 September 30, 2022 $ 678,333 $ 392,955 $ 285,378 $ 124,667 September 30, 2025 June 30, 2022 $ 434,019 $ 273,308 $ 160,711 $ 98,950 June 30, 2025 March 31, 2022 $ 211,896 $ 150,135 $ 61,761 $ 61,761 March 31, 2025 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative other expense Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2021 $ 892,640 $ 597,379 $ 295,261 $ 94,762 December 31, 2024 September 30, 2021 $ 664,052 $ 463,553 $ 200,499 $ 68,134 September 30, 2024 June 30, 2021 $ 436,866 $ 304,501 $ 132,365 $ 68,919 June 30, 2024 March 31, 2021 $ 220,126 $ 156,680 $ 63,446 $ 63,446 March 31, 2024 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2020 $ 989,447 $ 639,959 $ 349,488 $ 101,541 December 31, 2023 September 30, 2020 687,228 439,281 247,947 94,039 September 30, 2023 June 30, 2020 445,585 291,677 153,908 (30,539 ) June 30, 2023 March 31, 2020 257,226 72,779 184,447 — Expired During the three months ended March 31, 2023, $184,447 of expense reimbursements that were eligible for recoupment by the Adviser expired. There can be no assurance that the Expense Limitation Agreement will remain in effect or that the Adviser will reimburse any portion of the Company’s expenses in future quarters not covered by the Expense Limitation Agreement. Amounts shown do not include the amounts committed by the Adviser to voluntarily reimburse the Company for unrealized losses, all of which are not recoupable. Net Increase from Amounts Committed by Affiliates For the three months ended March 31, 2023 and March 31, 2022, the Adviser did not voluntarily reimburse the Company for unrealized losses sustained. Cumulatively since inception, the Adviser has committed $2,275,000 to voluntarily reimburse the Company for such losses. Had these commitments not been made, since inception, the NAV as of March 31, 2023 would have been lower by approximately this amount. Amounts committed and paid by the Adviser to reimburse for unrealized losses are nonrecurring, and investors should not expect the Adviser to make similar commitments or payments in the future. Receivable from Adviser / Payable to Adviser As of March 31, 2023 and December 31, 2022, $81,858 and $92,216 were owed from the Adviser to the Company, respectively, largely related to the expense limitation agreement. As of March 31, 2023 and December 31, 2022, the Company owed $317,702 and $314,993, respectively, to the Adviser, largely related to advisory fees, and administration fees. Indemnification Under the Company’s organizational documents, the officers and Directors have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Company. Additionally, in the normal course of business, the Company may enter into contracts with service providers that contain a variety of indemnification clauses. The Company’s maximum exposure under these arrangements is dependent on future claims that may be made against the Company and, therefore, cannot be estimated. |
U.S. Federal Income Tax Informa
U.S. Federal Income Tax Information | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
U.S. Federal Income Tax Information | Note 5 — U.S. Federal Income Tax Information The Company has elected to be treated for federal income tax purposes, and intends to qualify annually, as a RIC under Subchapter M of the Code. To maintain its qualification as a RIC, the Company must, among other things, meet certain source-of-income The character of income and capital gains to be distributed is determined in accordance with the Code, U.S. Treasury regulations, and other applicable authority, which may differ from GAAP. These differences include (but are not limited to) investments organized as partnerships for tax purposes, total return swaps, loan investments, and losses deferred due to wash sale transactions. Reclassifications are made to the Company’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under the Code, U.S. Treasury regulations, and other applicable authority. These reclassifications have no impact on net investment income, realized gains or losses, or net asset value of the Company. The calculation of net investment income per share in the Financial Highlights table excludes these adjustments. Uncertainty in Income Taxes The Company will evaluate its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Company’s tax returns are subject to examination by the Internal Revenue Service for a period of three fiscal years after they are filed. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in the Statements of Operations. During the three months ended March 31, 2023 and March 31, 2022, the Company did not incur any interest or penalties. Furthermore, management of the Company is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Share Repurchase Program | Note 6 — Share Repurchase Program On a quarterly basis, the Company intends to offer to repurchase shares of common stock on such terms as may be determined by the Board in its complete and absolute discretion unless, in the judgment of directors who are not “interested persons” of the Company (as defined in the 1940 Act), such repurchases would not be in the best interests of the Company’s stockholders or would violate applicable law. The Company will conduct such repurchase offers in accordance with the requirements of Rule 13e-4 The Company currently intends to limit the number of shares of common stock to be repurchased during any calendar year to the number of shares of common stock it can repurchase with the proceeds it receives from the sale of shares of common stock under its distribution reinvestment plan. At the discretion of the Board, the Company may also use cash on hand, cash available from borrowings and cash from liquidation of securities investments as of the end of the applicable period to repurchase shares of common stock. In addition, the Company will limit the number of shares of common stock to be repurchased in any calendar year to 10.0% of the weighted average number of shares of common stock outstanding in the prior calendar year, or 2.5% in each quarter, though the actual number of shares of common stock that the Company offers to repurchase may be less in light of the limitations noted above. The Company intends to offer to repurchase such shares of common stock at a price (i) not less than the net asset value per share (the “NAV Per Share”) of the Company’s common stock next calculated following the Expiration Date, and (ii) not more than 2.5% greater than the NAV Per Share as of such date. The Board may amend, suspend or terminate the share repurchase program at any time, upon 30 days’ notice. The Company conducted its quarterly tender offer for the first quarter of 2023 from February 23, 2023, until expiration of March 24 2023 , For the three months ended March 31, 2023, the Company repurchased 0 shares as part of its death and disability repurchase program. |
Economic Dependency and Commitm
Economic Dependency and Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Economic Dependency and Commitments and Contingencies | Note 7 — Economic Dependency and Commitments and Contingencies The Adviser has entered into a Services Agreement with Skyview, effective February 25, 2021, pursuant to which the Adviser will receive administrative and operational support services to enable it to provide the required advisory services to the Company. The Adviser, and not the Company, will compensate all Adviser and Skyview personnel who provide services to the Company. From time to time, the Company may be involved in legal proceedings in the normal course of its business. Although the outcome of such litigation cannot be predicted with any clarity, management is of the opinion, bas ed on Unfunded commitments to provide funds to portfolio companies are not recorded in the Company’s Statements of Assets and Liabilities. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company has sufficient liquidity to fund these commitments. As of March 31, 2023, the Company had no unfunded debt commitments. In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnification. The Company’s maximum exposure under these agreements is unknown, as this would involve future claims that may be made against the Company that have not occurred. The Company believes the risk of material obligations under these indemnities to be low. |
Market and Other Risk Factors
Market and Other Risk Factors | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Market and Other Factors | Note 8 — Market and Other Risk Factors The primary risks of investing in the Company are described below in alphabetical order: Conflict of Interest Risk The Adviser or its affiliates may have other clients with similar, different or competing investment objectives. In serving in these multiple capacities, they may have obligations to other clients or investors in those other entities, the fulfillment of which may not be in the best interests of us or our stockholders. For example, our Adviser and its affiliates manage or sponsor other investment funds, accounts or other investment vehicles. Our investment objective may overlap with the investment objectives of such affiliated investment funds, accounts or other investment vehicles. As a result, our Adviser may face conflicts of interest in the allocation of investment opportunities among us and other investment funds, accounts or other investment vehicles advised by or affiliated with our Adviser. Our Adviser will seek to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with its allocation policy. However, we can offer no assurance that such opportunities will be allocated to us fairly or equitably in the short-term or over time. Where we are able to co- invest consistent with the requirements of the 1940 Act and SEC exemptive relief, if sufficient securities or loan amounts are available to satisfy our and each such account’s proposed demand, the opportunity will be allocated in accordance with our Adviser’s pre-transaction determination and the requirements of the exemptive relief. If there is an insufficient amount of an investment opportunity to satisfy our demand and that of other accounts sponsored or managed by our Adviser or its affiliates, the allocation policy and exemptive relief further provides that allocations among us and such other accounts will generally be made pro rata based on the amount that each such party would have invested if sufficient loan amounts were available. However, there can be no assurance that we will be able to participate in all suitable investment opportunities. Concentration Risk The Company is classified as a non-diversified Covenant-Lite Loans Risk Loans in which the Company invests include covenant-lite loans, which carry more risk to the lender than traditional loans as they may contain fewer or less restrictive covenants on the borrower than traditionally included in loan documentation or may contain other borrower friendly characteristics. The Company may experience relatively greater difficulty or delays in enforcing its rights on its holdings of certain covenant-lite loans and debt securities than its holdings of loans or securities with the usual covenants. Counterparty Credit Risk Counterparty credit risk is the potential loss the Company may incur as a result of the failure of a counterparty or an issuer to make payments according to the terms of a contract. Counterparty credit risk is measured as the loss the Company would record if its counterparties failed to perform pursuant to the terms of their obligations to the Company. Because the Company may enter into over-the-counter Credit Risk Debt securities are subject to the risk of non-payment Non-payment non-payment Investments rated below investment grade are commonly referred to as high-yield, high risk or “junk debt.” They are regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and/or interest payments. Investments in high yield debt and high yield senior loans may result in greater net asset value fluctuation than if the Company did not make such investments. Corporate debt obligations, including senior loans, are subject to the risk of non-payment Non-payment non-payment Payment-In-Kind Because loans are not ordinarily registered with the SEC or any state securities commission or listed on any securities exchange, there is usually less publicly available information about such instruments. In addition, loans may not be considered “securities” for purposes of the anti-fraud protections of the federal securities laws and, as a result, as a purchaser of these instruments, the Company may not be entitled to the anti-fraud protections of the federal securities laws. In the course of investing in such instruments, the Company may come into possession of material nonpublic information and, because of prohibitions on trading in securities of issuers while in possession of such information, the Company may be unable to enter into a transaction in a publicly-traded security of that issuer when it would otherwise be advantageous for us to do so. Alternatively, the Company may choose not to receive material nonpublic information about an issuer of such loans, with the result that the Company may have less information about such issuers than other investors who transact in such assets. Foreign Securities Risk Investments in foreign securities involve certain factors not typically associated with investing in U.S. securities, such as risks relating to (i) currency exchange matters, including fluctuations in the rate of exchange between the U.S. dollar (the currency in which the books of the Company are maintained) and the various foreign currencies in which the Company’s portfolio securities will be denominated and costs associated with conversion of investment principal and income from one currency into another; (ii) differences between the U.S. and foreign securities markets, including the absence of uniform accounting, auditing and financial reporting standards and practices and disclosure requirements, and less government supervision and regulation; (iii) political, social or economic instability; and (iv) the extension of credit, especially in the case of sovereign debt. Illiquid Securities Risk The Company will generally make investments in private companies. Substantially all of these investments will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. The illiquidity of the Company’s investments may make it difficult for the Company to sell such investments if the need arises. In addition, if it is required to liquidate all or a portion of its portfolio quickly, the Company may realize significantly less than the value at which it has previously recorded its investments. In addition, it may face other restrictions on its ability to liquidate an investment in a portfolio company to the extent that it has material non-public The Company may seek to address its short-term liquidity needs by carefully managing the settlements of its portfolio transactions, including transactions in loans, by maintaining short-term liquid assets sufficient to meet reasonably anticipated obligations, and by maintaining a credit facility. Interest Rate Risk Interest Rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. When interest rates decline, the value of fixed rate securities already held by the Company can be expected to rise. Conversely, when interest rates rise, the value of existing fixed rate portfolio securities can be expected to decline. A company with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration Recent and potential future changes in government monetary policy may affect the level of interest rates. Investments in Foreign Markets Risk Investments in foreign markets involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies, high rates of inflation, restrictions on repatriation of income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, tariffs and taxes, subject to delays in settlements, and their prices may be more volatile. The Company may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation as income and/or capital gains are earned. Leverage Risk The Company may use leverage in its investment program, including the use of borrowed funds and investments in certain types of options, such as puts, calls and warrants, which may be purchased for a fraction of the price of the underlying securities. While such strategies and techniques increase the opportunity to achieve higher returns on the amounts invested, they also increase the risk of loss. To the extent the Company purchases securities with borrowed funds, its net assets will tend to increase or decrease at a greater rate than if borrowed funds are not used. If the interest expense on borrowings were to exceed the net return on the portfolio securities purchased with borrowed funds, the Company’s use of leverage would result in a lower rate of return than if the Company were not leveraged. LIBOR Transition and Associated Risk LIBOR is the average offered rate for various maturities of short-term loans between major international banks who are members of the British Bankers Association. LIBOR is the most common benchmark interest rate index used to make adjustments to variable-rate loans. It is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments (such as debt instruments and derivatives) and borrowing arrangements. Due to manipulation allegations in 2012 and reduced activity in the financial markets that it measures, in July 2017, the Financial Conduct Authority (the “FCA”), the United Kingdom financial regulatory body, announced a desire to phase out the use of LIBOR by the end of 2021 and that it will stop encouraging banks to provide the quotations needed to sustain LIBOR. The ICE Benchmark Administration Limited, the administrator of LIBOR, ceased publishing most LIBOR maturities, including some US LIBOR maturities, on December 31, 2021, and is expected to cease publishing the remaining and most liquid US LIBOR maturities on June 30, 2023. It is expected that market participants have or will transition to the use of alternative reference or benchmark rates prior to the applicable LIBOR publication cessation date. Additionally, although regulators have encouraged the development and adoption of alternative rates, such as the Secured Overnight Financing Rate (“SOFR”), the future utilization of LIBOR or of any particular replacement rate remains uncertain. Although the transition process away from LIBOR has become increasingly well defined in advance of the anticipated discontinuation dates, the impact on certain debt securities, derivatives and other financial instruments remains uncertain. It is expected that market participants will adopt alternative rates such as SOFR or otherwise amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events, but neither the effect of the transition process nor the viability of such measures is known. Further, uncertainty and risk remain regarding the willingness and ability of issuers and lenders to include alternative rates and revised provisions in new and existing contracts or instruments. To facilitate the transition of legacy derivatives contracts referencing LIBOR, the International Swaps and Derivatives Association, Inc. launched a protocol to incorporate fallback provisions. While the transition process away from LIBOR has become increasingly well defined in advance of the expected LIBOR cessation dates, there are obstacles to converting certain longer term securities and transactions to a new benchmark or benchmarks and the effectiveness of one alternative reference rate versus multiple alternative reference rates in new or existing financial instruments and products has not been determined. Furthermore, the risks associated with the cessation of LIBOR and transition to replacement rates may be exacerbated if an orderly transition to alternative reference rates is not completed in a timely manner. Certain proposed replacement rates to LIBOR, such as SOFR, which is a broad measure of secured overnight US Treasury repo rates, are materially different from LIBOR, and changes in the applicable spread for financial instruments transitioning away from LIBOR will need to be made to accommodate the differences. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition to replacement rates may be exacerbated if an orderly transition to an alternative reference rate is not completed in a timely manner. As market participants transition away from LIBOR, LIBOR’s usefulness may deteriorate and the effects could be experienced until the permanent cessation of the majority of U.S. LIBOR rates in 2023. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR’s deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate. Alteration of the terms of a debt instrument or a modification of the terms of other types of contracts to replace LIBOR or another interbank offered rate (“IBOR”) with a new reference rate could result in a taxable exchange and the realization of income and gain/loss for U.S. federal income tax purposes. The Internal Revenue Service (“IRS”) has issued final regulations regarding the tax consequences of the transition from IBOR to a new reference rate in debt instruments and non-debt Operational and Technology Risk The risk that cyber-attacks, disruptions, or failures that affect the Funds’ service providers, counterparties, market participants, or issuers of securities held by the Funds may adversely affect the Funds and its shareholders, including by causing losses for the Funds or impairing Fund operations. Options Risk There are several risks associated with transactions in options on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A transaction in options or securities may be unsuccessful to some degree because of market behavior or unexpected events. When the Company writes a covered call option, the Company forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but retains the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its obligation and once an option writer has received an exercise notice, it must deliver the underlying security in exchange for the strike price. When the Company writes a covered put option, the Company bears the risk of loss if the value of the underlying stock declines below the exercise price minus the put premium. If the option is exercised, the Company could incur a loss if it is required to purchase the stock underlying the put option at a price greater than the market price of the stock at the time of exercise plus the put premium the Company received when it wrote the option. While the Company’s potential gain in writing a covered put option is limited to distributions earned on the liquid assets securing the put option plus the premium received from the purchaser of the put option, the Company risks a loss equal to the entire exercise price of the option minus the put premium. Pandemics and Associated Economic Disruption Risk An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread globally (“COVID-19”). This coronavirus has resulted in and may continue to result in the closing of borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general anxiety and economic uncertainty. The impact of this has resulted in a substantial economic volatility. Health crises caused by outbreaks of disease, such as the coronavirus, may exacerbate other pre-existing The United States responded to the COVID-19 outbreak and resulting economic distress with fiscal and monetary stimulus packages, including the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) passed in late March 2020. The CARES Act provides for over $ trillion in resources to small businesses, state and local governments, and individuals adversely impacted by the COVID-19 trillion stimulus bill to accelerate the United States’ recovery from the economic and health effects of the COVID-19 mid-March repurchase agreement operations, which added $1.5 trillion of liquidity to the banking system; establishing swap lines with other major central banks to provide dollar funding; establishing a program to support money market funds; easing various bank capital buffers; providing funding backstops for businesses to provide bridging loans for up to four years; and providing funding to help credit flow in asset-backed securities markets. In addition, the Fed extended credit to small- and medium-sized COVID-19 Senior Loans Risk The risk that the issuer of a senior loan may fail to pay interest or principal when due, and changes in market interest rates may reduce the value of the senior loan or reduce the Company’s returns. The risks associated with senior loans are similar to the risks of high yield debt securities. Senior loans and other debt securities are also subject to the risk of price declines and to increases in interest rates, particularly long-term rates. Senior loans are also subject to the risk that, as interest rates rise, the cost of borrowing increases, which may increase the risk of default. In addition, the interest rates of floating rate loans typically only adjust to changes in short-term interest rates; long-term interest rates can vary dramatically from short-term interest rates. Therefore, senior loans may not mitigate price declines in a long-term interest rate environment. The Company’s investments in senior loans are typically below investment grade and are considered speculative because of the credit risk of their issuers. LIBOR is the average offered rate for various maturities of short-term loans between major international banks who are members of the British Bankers Association. LIBOR is the most common benchmark interest rate index used to make adjustments to variable-rate loans. It is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments (such as debt instruments and derivatives) and borrowing arrangements. Due to manipulation allegations in 2012 and reduced activity in the financial markets that it measures, in July 2017, the Financial Conduct Authority, the United Kingdom financial regulatory body, announced a desire to phase out the use of LIBOR by the end of 2021. Please refer to “LIBOR Transition and Associated Risk” for more information. Structured Finance Securities Risk A portion of the Company’s investments may consist of equipment trust certificates, collateralized mortgage obligations, collateralized bond obligations, collateralized loan obligations (“CLO”) or similar instruments. Such structured finance securities are generally backed by an asset or a pool of assets, which serve as collateral. Depending on the type of security, the collateral may take the form of a portfolio of mortgage loans or bonds or other assets. The Company and other investors in structured finance securities ultimately bear the credit risk of the underlying collateral. In some instances, the structured finance securities are issued in multiple tranches, offering investors various maturity and credit risk characteristics, often categorized as senior, mezzanine and subordinated/equity according to their degree of risk. The riskiest securities are the equity tranche, which bears the bulk of defaults from the bonds or loans serving as collateral, and thus may protect the other, more senior tranches from default. If there are defaults or the relevant collateral otherwise underperforms, scheduled payments to senior tranches of such securities take precedence over those of mezzanine tranches, and scheduled payments to mezzanine tranches take precedence over those to subordinated/equity tranches. A senior tranche typically has higher ratings and lower yields than the underlying securities, and may be rated investment grade. Despite the protection from the equity tranche, other tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to previous defaults and the disappearance of protecting tranches, market anticipation of defaults and aversion to certain structured finance securities as a class. Short-Selling Risk Short sales by the Company that are not made where there is an offsetting long position in the asset that it is being sold short theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase. Short selling allows the Company to profit from declines in market prices to the extent such decline exceeds the transaction costs and costs of borrowing the securities. However, since the borrowed securities must be replaced by purchases at market prices in order to close out the short position, any appreciation in the price of the borrowed securities would result in a loss. Purchasing securities to close out the short position can itself cause the price of securities to rise further, thereby exacerbating the loss. The Company may mitigate such losses by replacing the securities sold short before the market price has increased significantly. Under adverse market conditions, the Company might have difficulty purchasing securities to meet margin calls on its short sale delivery obligations, and might have to sell portfolio securities to raise the capital necessary to meet its short sale obligations at a time when fundamental investment considerations would not favor such sales. Further, if other short positions of the same security are closed out at the same time, a “short squeeze” can occur where demand exceeds the supply for the security sold short. A short squeeze makes it more likely that the Adviser will need to replace the borrowed security at an unfavorable price. Valuation Risk Certain of the Company’s assets are fair valued, including the Company’s investment in equity issued by TerreStar Corporation (“TerreStar”). TerreStar does not currently generate revenue and primarily derives its value from holding licenses of two wireless spectrum assets. The license with respect to one such spectrum asset was previously terminated by the FCC and subsequently restored on April 30, 2020 on a limited conditional basis. The restoration of such license requires TerreStar to meet certain deployment milestones for wireless medical telemetry service (“WMTS”) during a 39-month If TerreStar is unsuccessful in satisfying such deployment milestones, or if other services cannot be implemented in a manner that does not interfere with WMTS, the value of the TerreStar equity would likely be materially negatively impacted. In determining the fair value of TerreStar, the Adviser has assigned a high probability of success on both conditions based on consultation with the company and its consultants. |
Affiliated Investments
Affiliated Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Affiliated Investments | Note 9 — Affiliated Investments Under Section 2(a)(3) of the 1940 Act, a portfolio company is defined as “aff iliated” if a The table below includes non-cash transactions for the three months ended March 31, 2023. Affiliated investments Shares at December 31, 2022 Fair value as of December 31, 2022 Transfers Purchases Sales Realized Change in Fair value as of March 31, 2023 Shares at March 31, 2023 Affiliated NexPoint Residential Trust, Inc. 23,409 $ 1,018,779 $ — $ — $ — $ — $ 3,512 $ 1,022,291 23,409 $ 9,832 NexPoint Capital (Senior 100 1,176,024 7,368,085 463,314 — — (1,639,454 ) 7,367,969 464,041 — NexPoint Real Estate Finance, Inc. 481,670 7,653,730 (7,368,085 ) — — — 1,777,618 2,063,263 131,670 90,194 SFR WLIF III, LLC 451,112 424,468 — — — — (6,287 ) 418,181 451,112 11,430 Total affiliated investments 956,291 $ 10,273,001 $ — $ 463,314 $ — $ — $ 135,389 $ 10,871,704 1,070,232 $ 111,456 |
Financial Highlights
Financial Highlights | 3 Months Ended |
Mar. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights | Note 10 — Financial Highlights Selected data for a share outstanding throughout the three months ended March 31, 2023 and March 31, 2022 is as follows: For the Three Months Ended For the Three Months March 31, 2023 March 31, 2022 Common shares per share operating performance: Net asset value, beginning of period $ 5.55 $ 6.32 Income from investment operations: Net investment income (1) 0.04 0.05 Net realized and unrealized gain (loss) (0.14 ) 0.07 Total from investment operations (0.10 ) 0.12 Less distribution declared to common shareholders: From net investment income (0.09 ) (0.09 ) Total distributions declared to common shareholders (0.09 ) (0.09 ) Capital share transaction Issuance of common stock (2) — — Shares tendered (1) — — Net asset value, end of period $ 5.36 $ 6.35 Net asset value total return (3)(4) (1.80 )% 1.83 % Ratio and supplemental data: Net assets, end of period (in 000’s) $ 51,159 $ 62,947 Shares outstanding, end of period 9,548,899 9,918,671 Common share information at end of period: Ratios based on weighted average net assets of common shares: Gross operating expenses (5) 4.05 % 3.72 % Fees and expenses waived or reimbursed (5) (0.62 )% (0.39 )% Net operating expenses (5) 3.43 % 3.33 % Net investment income (loss) before fees (5) 2.14 % 2.73 % Net investment income (loss) after fees (5) 2.76 % 3.12 % Portfolio turnover rate (4) 1 % 26 % Asset coverage ratio — % — % Weighted average commission rate paid (6) $ — $ — (1) Per share data was calculated using weighted average shares outstanding during the period. (2) The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date times (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding at the end of the period. The Company’s continuous public offering ended on February 14, 2018. (3) Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions, and assume no sales charge. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s Dividend Reinvestment Plan. Had the Adviser not absorbed a portion of expenses, total returns would have been lower. (4) Not annualized. (5) Annualized. (6) Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of portfolio shares purchased and sold for which commissions were charged. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subseqent Events | Note 11 — Subsequent Events The Company has evaluated subsequent events through the date on which these financial statements were issued. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q S-X. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
Statements of Cash Flows | Statements of Cash Flows Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Statements of Cash Flows. The cash amount shown in the Statements of Cash Flows is the amount included within the Company’s Statements of Assets and Liabilities and includes cash on hand at its custodian bank. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers liquid assets deposited with a bank, money market funds, and certain short-term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Company expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates fair value. The value of cash equivalents denominated in foreign currencies, if any, is determined by converting to U.S. dollars on the date of the Statements of Assets and Liabilities. As of March 31, 2023 and December 31, 2022, the Company had cash and cash equivalents of $1,131,784 and $1,629,846, respectively. As of March 31, 2023 and December 31, 2022, $773,826 and $1,420,428 was held in the State Street U.S. Government Money Market Fund, and $357,958 and $209,418 was held in a custodial account with State Street Bank and Trust Company, respectively. |
Securities Sold Short and Restricted Cash | Securities Sold Short and Restricted Cash The Company may sell securities short. A security sold short is a transaction in which the Company sells a security it does not own in anticipation that the market price of that security will decline. When the Company sells a security short, it must borrow the security sold short from a broker-dealer and deliver it to the buyer upon conclusion of the transaction. The Company may have to pay a fee to borrow particular securities and is often obligated to pay over any dividends or other payments received on such borrowed securities. Cash held as collateral for securities sold short is classified as restricted cash on the Statements of Assets and Liabilities, when applicable. Securities held as collateral for securities sold short are shown on the Schedules of Investments for the Company, as applicable. As of March 31, 2023 and December 31, 2022, the Company did not have any securities sold short. When securities are sold short, the Company intends to limit exposure to a possible market decline in the value of its portfolio companies through short sales of securities that the Adviser believes possess volatility characteristics similar to those being hedged. In addition, the Company may use short sales for non-hedging |
Other Fee Income | Other Fee Income Fee income may consist of origination/closing fees, amendment fees, administrative agent fees, transaction break-up non-recurring |
Fair Value of Financial Instruments | Fair Value of Financial Instruments It is the Company’s policy to hold the investments at fair value. ASC Topic 820, Fair Value Measurements and Disclosure Pursuant to Rule 2a-5 2a-5 With respect to investments for which market quotations are not readily available, the Adviser undertakes a multi-step valuation process each quarter, as described below: • The valuation process begins with each portfolio company or investment being initially valued by investment professionals of the Adviser responsible for credit monitoring or independent third party valuation firms. • Preliminary valuation conclusions are then documented and discussed with a committee comprised of certain senior management employees of the Adviser (the “Valuation Committee”) established by the Adviser to assist the Adviser in discharging its responsibilities as valuation designee. • At least once each quarter, the valuations for approximately one quarter of the portfolio investments that have been fair valued are reviewed by an independent valuation firm such that, over the course of a year, each material portfolio investment that has been fair valued shall have been reviewed by an independent valuation firm at least once. • Based on this information, the Adviser discusses valuations and determines the fair value of each investment in the portfolio in good faith pursuant to board-approved policies and procedures. As of March 31, 2023, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,267 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 TerreStar Corp. Common Stocks 5,032,249 Wayne Services Legacy, Inc. Common Stocks 2,268 NexPoint Capital REIT, LLC LLC Interests 6,904,655 SFR WLIF III, LLC LLC Interests 418,181 US Gaming, LLC LLC Interests 2,841,603 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,993 Sapience Therapeutics, Inc. Preferred Stocks 4,581,906 Sapience Therapeutics, Inc. Preferred Stocks 3,700,000 CCS Medical, Inc. Senior Secured Loans 3,000,000 NexPoint Capital REIT , LLC Senior Secured Loans 463,314 TerreStar Corp. Senior Secured Loans 836,016 TerreStar Corp. Senior Secured Loans 197,921 TerreStar Corp. Senior Secured Loans 35,360 TerreStar Corp. Senior Secured Loans 32,991 As of December 31, 2022, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,023 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 TerreStar Corp. Common Stocks 5,114,214 Wayne Services Legacy, Inc. Common Stocks 2,269 NexPoint Capital REIT, LLC LLC Interests 1,176,024 SFR WLIF III, LLC LLC Interests 424,468 US Gaming, LLC LLC Interests 3,088,750 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,994 Sapience Therapeutics, Inc. Preferred Stocks 4,549,525 Sapience Therapeutics, Inc. Preferred Stocks 3,677,777 CCS Medical, Inc. Senior Secured Loans 3,000,000 TerreStar Corp. Senior Secured Loans 810,953 TerreStar Corp. Senior Secured Loans 191,988 TerreStar Corp. Senior Secured Loans 34,300 TerreStar Corp. Senior Secured Loans 32,002 Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to the Company’s financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, in the Company’s financial statements. Below is a description of factors that the Adviser and the Valuation Committee may consider when valuing the Company’s debt and equity investments. Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted cash flow models to arrive at fair value. Other factors that the Adviser and the Valuation Committee may consider include the borrower’s ability to adequately service its debt, the fair market value of the portfolio company in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The Company’s equity investments in portfolio companies for which there is no liquid public market will be valued at fair value. The Adviser and the Valuation Committee, in its analysis of fair value, may consider various factors, such as multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues or, in limited instances, book value or liquidation value. All of these factors may be subject to adjustments based upon the particular circumstances of a portfolio company or the Company’s actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners or acquisition, recapitalization, restructuring or other related items. The Adviser and the Valuation Committee may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. The Adviser and the Valuation Committee may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors it deems relevant in assessing the value. Generally, the value of the Company’s equity interests in public companies for which market quotations are readily available will be based upon the most recent closing public market price. If the Company receives warrants or other equity-linked securities at nominal or no additional cost in connection with an investment in a debt security, the Company will allocate the cost basis in the investment between the debt securities and any such warrants or other equity-linked securities received at the time of origination. The Adviser and the Valuation Committee will subsequently value these warrants or other equity-linked securities received at fair value. As applicable, the Company values its Level 2 assets by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which is provided by an independent third-party pricing service and screened for validity by such service. For investments for which the third-party pricing service is unable to obtain quoted prices, the Company obtains bid and ask prices directly from dealers who make a market in such investments. To the extent that the Company holds investments for which no active secondary market exists and, therefore, no bid and ask prices can be readily obtained, the Adviser and the Valuation Committee utilize an independent third-party valuation service to value such investments in a manner consistent with the Company’s multistep valuation process previously described. The Company periodically benchmarks the bid and ask prices received from the third-party pricing service and/or dealers, as applicable, and valuations received from the third-party valuation service against the actual prices at which it purchases and sells its investments. The Company believes that these prices are reliable indicators of fair value. The Adviser and the Valuation Committee review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation procedures. As of March 31, 2023, the Company’s investments consisted of senior secured loans, asset-backed securities, common stocks, LLC interests, preferred stocks, corporate bonds, and warrants, which may be purchased for a fraction of the price of the underlying securities. The fair value of the Company’s loans, bonds and asset-backed securities are generally based on quotes received from brokers or independent pricing services. Loans, bonds and asset-backed securities with quotes that are based on actual trades with a sufficient level of activity on or near the measurement date are classified as Level 2 assets. Loans, bonds and asset-backed securities that are priced using quotes derived from implied values, indicative bids or a limited number of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. The fair value of the Company’s common stocks and options that are not actively traded on national exchanges are generally priced using quotes derived from implied values, indicative bids, or a limited amount of actual trades and are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. Exchange traded options are valued based on the last trade price on the primary exchange on which they trade. If an option does not trade, the mid-price At the end of each calendar quarter, the Adviser evaluates the Level 2 and 3 investments for changes in liquidity, including: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market price, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of 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 the Company may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following are summaries of the Company’s investments categorized within the fair value hierarchy as of March 31, 2023 and December 31, 2022: March 31, 2023 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 5,466,015 $ 3,000,000 $ 8,466,015 Real Estate — — 463,314 463,314 Telecommunication Services — — 1,102,288 1,102,288 Asset-Backed Securities Financials — — 7,280 7,280 Corporate Bonds Healthcare — 2,240,779 — 2,240,779 Media/Telecommunications — 259,466 — 259,466 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,629,178 — 1,629,178 Financials — — 1,732,500 1,732,500 Real Estate 2,063,263 — 2,359,000 4,422,263 Real Estate Investment Trusts (REITs) 1,022,291 — — 1,022,291 Service — — 2,268 2,268 Telecommunication Services — — 5,032,249 5,032,249 LLC Interests Consumer Products — — 2,841,603 2,841,603 Real Estate — — 7,322,836 7,322,836 Preferred Stocks Financials — 1,400,000 — 1,400,000 Healthcare — — 10,581,888 10,581,888 Warrants Energy — 152,748 — 152,748 Media/Telecommunications — 10,063 — 10,063 Total Assets $ 3,085,554 $ 11,200,749 $ 34,445,226 $ 48,731,529 Total Investments $ 3,085,554 $ 11,200,749 $ 34,445,226 $ 48,731,529 December 31, 2022 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 10,158,950 $ 3,000,000 $ 13,158,950 Telecommunication Services — — 1,069,243 1,069,243 Asset-Backed Securities Financials — — 7,036 7,036 Corporate Bonds Healthcare — 2,414,839 — 2,414,839 Media/Telecommunications — 290,078 — 290,078 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,591,692 — 1,591,692 Financials — — 1,732,500 1,732,500 Real Estate 7,653,730 — 2,359,000 10,012,730 Real Estate Investment Trusts (REITs) 1,018,779 — — 1,018,779 Service — — 2,269 2,269 Telecommunication Services — — 5,114,214 5,114,214 LLC Interests Consumer Products — — 3,088,750 3,088,750 Real Estate — — 1,600,492 1,600,492 Preferred Stocks Financials — 1,440,625 — 1,440,625 Healthcare — — 10,527,285 10,527,285 Warrants Energy — 161,249 — 161,249 Media/Telecommunications — 20,484 — 20,484 Total Assets $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 Total Investments $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the three months ended March 31, 2023. The table below includes noncash transactions for the three months ended March 31, 2023. Investments: Balance as of Transfers Transfer Net Distribution Net realized Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 1,069,243 $ — $ — $ — $ — $ — $ 3,198 $ 29,847 $ — $ 1,102,288 $ 3,198 Healthcare 3,000,000 — — 4,465 — — (4,465 ) — — 3,000,000 (4,465 ) Real Estate — — — — — — — 463,314 — 463,314 — Asset-Backed Securities Financials 7,036 — — — — — 244 — — 7,280 244 Common Stocks Financials 1,732,500 — — — — — — — — 1,732,500 — Real Estate 2,359,000 — — — — — — — — 2,359,000 — Service 2,269 — — — — — — — — 2,268 — Telecommunication Services 5,114,214 — — — — — (81,965 ) — — 5,032,249 (81,965 ) LLC Interests Consumer Products 3,088,750 — — — — 163,314 52,853 — (463,314 ) 2,841,603 52,853 Real Estate 1,600,492 — — — — — (1,645,741 ) 7,368,085 (1) — 7,322,836 (1,645,741 ) Preferred Stocks Healthcare 10,527,285 — — — — — 54,603 — — 10,581,888 54,603 Total $ 28,500,789 $ — $ — $ 4,465 $ — $ 163,314 $ (1,621,273 ) $ 7,861,246 $ (463,314 ) $ 34,445,226 $ (1,621,273 ) (1) Represents an in-kind transfer to the subreit. The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the three months ended March 31, 2022. Investments: Balance as of Transfers Transfer Net Distribution Net realized Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 962,478 $ — $ — $ — $ — $ — $ — $ 26,711 $ — $ 989,189 $ — Healthcare 4,000,000 — — 3,809 — — 86,191 2,990,000 (4,080,000 )(a) 3,000,000 86,191 Asset-Backed Securities Financials 405,040 — — — — — 11,787 — (16,979 ) 399,848 11,787 Common Stocks Financials 2,208,750 — — — — — (603,450 ) — — 1,605,300 (603,450 ) Real Estate 1,823,000 — — — — — 141,000 — — 1,964,000 141,000 Service 5,172 — — — — — — — — 5,172 — Telecommunication Services 4,706,357 — — — — — (94,456 ) — — 4,611,901 (94,456 ) LLC Interests Consumer Products 2,812,212 — — — — — 169,426 — — 2,981,638 169,426 Real Estate 4,760,162 — — — — (74,603 ) 139,367 — (3,274,285 )(b) 1,550,641 (13,275 ) Preferred Stocks Healthcare — — — — — — — 8,080,000 (a) — 8,080,000 — Total $ 21,683,171 $ — $ — $ 3,809 $ — $ (74,603 ) $ (150,135 ) $ 11,096,711 $ (7,371,264 ) $ 25,187,689 $ (302,777 ) (a) Denotes Sapience’s $4,080,000 promissory notes and paid in kind interest conversion to preferred stock. (b) Denotes SFR II’s LLC Interests conversion into NREF common shares. Investments designated as Level 3 may include investments valued using quotes or indications furnished by brokers which are based on models or estimates and may not be executable prices. In light of the developing market conditions, the Adviser continues to search for observable data points and evaluate broker quotes and indications received for investments. Determination of fair values is uncertain because it involves subjective judgments and estimates that are unobservable. Transfers from Level 2 to Level 3 are due to a decrease in market activity (e.g. frequency of trades), which resulted in a decrease of available market inputs to determine price. For the three months ended March 31, 2023, there were no transfers from Level 2 to Level 3. For the three months ended March 31, 2022, there were no transfers from Level 2 to Level 3. Transfers from Level 3 to Level 2 and from Level 2 to Level 1 are due to an increase in market activity (e.g. frequency of trades), which resulted in an increase of available market inputs to determine price. The following are summaries of significant unobservable inputs used in the fair valuations of investments categorized within Level 3 of the fair value hierarchy as of March 31, 2023 and December 31, 2022: Investment Fair value at March 31, 2023 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 10,164,438 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.98% - 9.18% (7.08%) 5.60x - 9.95x ( 7.70 Preferred Stock 10,581,888 Option Pricing Model Volatility 40% - 90% (65%) Common Stock 9,126,018 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 11.0% - 13.0% (12.0%) 3.25x - 4.25x ( $0.09 - $0.95 ($0.52) $921.5 40% - 100% $28 Senior Secured Loans 4,565,602 Discounted Cash Flow Discount Rate 10.25% - 13.06% (11.40%) Asset-Backed Securities 7,280 NAV Approach Discount Rate 70.00% Total $ 34,445,226 Investment Fair value at December 31, 2022 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 4,689,242 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.73% - 8.93% (6.83%) 5.55x - 9.85x (7.70x) Preferred Stock 10,527,285 Option Pricing Model Transaction Indication of Value Volatility Recap Price 40% - 60% (50%) $11.10 Common Stock 9,207,983 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 13.50% - 15.50% (14.50%) 3.25x - 4.25x (3.75x) $0.09 - $0.95 ($0.52) $872 - $969 ($920.5) 40% - 100% (70%) $28 Senior Secured Loans 4,069,243 Discounted Cash Flow Discount Rate 10.25% - 13.08% (11.67%) Asset-Backed Securities 7,036 NAV Approach Discount Rate 70.00% Total $ 28,500,789 The significant unobservable inputs used in the fair value measurement of the Company’s LLC interests are: discount rate and multiples of EBITDA. Significant increases (decreases) in those inputs in isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s common equity securities are: multiple of EBITDA, price/MHz-PoP The significant unobservable inputs used in the fair value measurement of the Company’s asset-backed securities are: discount rate and broker quote indication of value. Significant increases (decreases) in either of those inputs in isolation could result in a significantly lower (higher) fair value measurement. The significant unobservable input used in the fair value measurement of the Company’s warrant securities is: volatility assumption. Significant increases (decreases) in this input in isolation could result in a significantly lower (higher) fair value measurement. |
Derivative Transactions | Derivative Transactions The Company is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Company may invest without limitation in warrants and may also use derivatives, primarily swaps (including equity, variance and volatility swaps), options and futures contracts on securities, interest rates, commodities and/or currencies, as substitutes for direct investments the Company can make. The Company may also use derivatives such as swaps, options (including options on futures), futures, and foreign currency transactions (e.g., foreign currency swaps, futures and forwards) to any extent deemed by the Adviser to be in the best interest of the Company, and to the extent permitted by the 1940 Act, to hedge various investments for risk management and speculative purposes. |
Options | Options The Company purchases options, subject to certain limitations. The Company may invest in options contracts to manage its exposure to the stock and bond markets and fluctuations in foreign currency values. Writing puts and buying calls tend to increase the Company’s exposure to the underlying instrument while buying puts and writing calls tend to decrease the Company’s exposure to the underlying instrument, or economically hedge other Company investments. The Company’s risks in using these contracts include changes in the value of the underlying instruments, nonperformance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Options are valued at the last sale price, or if no sales occurred on that day, at the last quoted bid price. As of and during the three months ended March 31, 2023 and 2022, the Company did not hold options. |
Investment Transactions | Investment Transactions Investment transactions are accounted for on trade date. Realized gains (losses) on investments sold are recorded on the basis of specific identification method for both financial statement and U.S. federal income tax purposes. Payable for investments purchased and receivable for investments sold on the Statements of Assets and Liabilities, if any, represents the cost of purchases and proceeds from sales of investment securities, respectively, for trades that have been executed but not yet settled. |
Income Recognition | Income Recognition Corporate actions (including cash dividends from common stock and equity tranches of asset-backed securities) are recorded on the ex-dividend ex-dividend (payment-in-kind) Accretion of discounts and amortization of premiums on taxable bonds, loans and asset-backed securities are computed to the call or maturity date, whichever is shorter, using the effective yield method. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates. |
Organization and Offering Costs | Organization and Offering Costs Organization costs are paid by the Adviser and include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization. Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock and are also paid by the Adviser. Prior to the termination of the offering, as we raised proceeds, these organization and offering costs were expensed and became payable to the Adviser. Organization and offering costs are limited to 1% of total gross proceeds raised and are not due and payable to the Adviser to the extent they exceed that amount. Please refer to Note 4 for additional information on Organization and Offering Costs. |
Paid-in Capital | Paid-in The proceeds from the issuance of common stock as presented on the Company’s Statements of Changes in Net Assets is presented net of selling commissions and fees for the three months ended March 31, 2023 and March 31, 2022. Selling commissions and fees of $0 and $0 were paid for the three months ended March 31, 2023 and March 31, 2022, respectively. |
Earnings Per Share | Earnings Per Share In accordance with the provisions of ASC Topic 260— Earnings per Share The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations: For the three months ended 2023 2022 Net increase (decrease) in net assets resulting from operations $ (977,817 ) $ 1,145,017 Weighted average common shares outstanding 9,699,655 9,990,797 Earnings (loss) per common share-basic and diluted $ (0.10 ) $ 0.11 |
Distributions | Distributions Distributions to the Company’s stockholders will be recorded as of the record date. Subject to the discretion of the Board and applicable legal restrictions, the Company intends to authorize and declare ordinary cash distributions on a weekly basis and pay such distributions on a quarterly basis. Net realized capital gains, if any, will generally be distributed or deemed distributed at least every 12-month On June 24, 2020, the Board approved a change in its dividend and capital gains distribution schedule from monthly distributions to quarterly distributions, effective immediately. The first quarterly distribution was paid on October 12, 2020 to shareholders of record as of September 30, 2020. The dividends are expected to be declared in the amount of $0.09 per share of the Company’s common stock to the stockholders of record at each quarter end. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, No. 2020-04 No. 2020-04. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Investments Using Significant Unobservable Input | As of March 31, 2023, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,267 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 TerreStar Corp. Common Stocks 5,032,249 Wayne Services Legacy, Inc. Common Stocks 2,268 NexPoint Capital REIT, LLC LLC Interests 6,904,655 SFR WLIF III, LLC LLC Interests 418,181 US Gaming, LLC LLC Interests 2,841,603 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,993 Sapience Therapeutics, Inc. Preferred Stocks 4,581,906 Sapience Therapeutics, Inc. Preferred Stocks 3,700,000 CCS Medical, Inc. Senior Secured Loans 3,000,000 NexPoint Capital REIT , LLC Senior Secured Loans 463,314 TerreStar Corp. Senior Secured Loans 836,016 TerreStar Corp. Senior Secured Loans 197,921 TerreStar Corp. Senior Secured Loans 35,360 TerreStar Corp. Senior Secured Loans 32,991 As of December 31, 2022, the Company held the following investments for which a sufficient level of current, reliable market quotations were not available: Instrument Type Fair value Grayson Investor Corp. Asset-Backed Securities $ 7,023 PAMCO CLO 1997-1A Asset-Backed Securities 13 American Banknote Corp. Common Stocks 1,732,500 IQHQ, Inc. Common Stocks 2,359,000 TerreStar Corp. Common Stocks 5,114,214 Wayne Services Legacy, Inc. Common Stocks 2,269 NexPoint Capital REIT, LLC LLC Interests 1,176,024 SFR WLIF III, LLC LLC Interests 424,468 US Gaming, LLC LLC Interests 3,088,750 Apnimed, Inc. Preferred Stocks 1,499,989 Apnimed, Inc. Preferred Stocks 799,994 Sapience Therapeutics, Inc. Preferred Stocks 4,549,525 Sapience Therapeutics, Inc. Preferred Stocks 3,677,777 CCS Medical, Inc. Senior Secured Loans 3,000,000 TerreStar Corp. Senior Secured Loans 810,953 TerreStar Corp. Senior Secured Loans 191,988 TerreStar Corp. Senior Secured Loans 34,300 TerreStar Corp. Senior Secured Loans 32,002 |
Summary of Investments Categorize into Fair Value Hierarchy | The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following are summaries of the Company’s investments categorized within the fair value hierarchy as of March 31, 2023 and December 31, 2022: March 31, 2023 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 5,466,015 $ 3,000,000 $ 8,466,015 Real Estate — — 463,314 463,314 Telecommunication Services — — 1,102,288 1,102,288 Asset-Backed Securities Financials — — 7,280 7,280 Corporate Bonds Healthcare — 2,240,779 — 2,240,779 Media/Telecommunications — 259,466 — 259,466 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,629,178 — 1,629,178 Financials — — 1,732,500 1,732,500 Real Estate 2,063,263 — 2,359,000 4,422,263 Real Estate Investment Trusts (REITs) 1,022,291 — — 1,022,291 Service — — 2,268 2,268 Telecommunication Services — — 5,032,249 5,032,249 LLC Interests Consumer Products — — 2,841,603 2,841,603 Real Estate — — 7,322,836 7,322,836 Preferred Stocks Financials — 1,400,000 — 1,400,000 Healthcare — — 10,581,888 10,581,888 Warrants Energy — 152,748 — 152,748 Media/Telecommunications — 10,063 — 10,063 Total Assets $ 3,085,554 $ 11,200,749 $ 34,445,226 $ 48,731,529 Total Investments $ 3,085,554 $ 11,200,749 $ 34,445,226 $ 48,731,529 December 31, 2022 Investments Level 1 Level 2 Level 3 Total Assets Senior Secured Loans Healthcare $ — $ 10,158,950 $ 3,000,000 $ 13,158,950 Telecommunication Services — — 1,069,243 1,069,243 Asset-Backed Securities Financials — — 7,036 7,036 Corporate Bonds Healthcare — 2,414,839 — 2,414,839 Media/Telecommunications — 290,078 — 290,078 Common Stocks Chemicals — 42,500 — 42,500 Energy — 1,591,692 — 1,591,692 Financials — — 1,732,500 1,732,500 Real Estate 7,653,730 — 2,359,000 10,012,730 Real Estate Investment Trusts (REITs) 1,018,779 — — 1,018,779 Service — — 2,269 2,269 Telecommunication Services — — 5,114,214 5,114,214 LLC Interests Consumer Products — — 3,088,750 3,088,750 Real Estate — — 1,600,492 1,600,492 Preferred Stocks Financials — 1,440,625 — 1,440,625 Healthcare — — 10,527,285 10,527,285 Warrants Energy — 161,249 — 161,249 Media/Telecommunications — 20,484 — 20,484 Total Assets $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 Total Investments $ 8,672,509 $ 16,120,417 $ 28,500,789 $ 53,293,715 |
Summary of Fair Value Assets Measured on Recurring Basis Unobservable input Reconciliation | The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the three months ended March 31, 2023. The table below includes noncash transactions for the three months ended March 31, 2023. Investments: Balance as of Transfers Transfer Net Distribution Net realized Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 1,069,243 $ — $ — $ — $ — $ — $ 3,198 $ 29,847 $ — $ 1,102,288 $ 3,198 Healthcare 3,000,000 — — 4,465 — — (4,465 ) — — 3,000,000 (4,465 ) Real Estate — — — — — — — 463,314 — 463,314 — Asset-Backed Securities Financials 7,036 — — — — — 244 — — 7,280 244 Common Stocks Financials 1,732,500 — — — — — — — — 1,732,500 — Real Estate 2,359,000 — — — — — — — — 2,359,000 — Service 2,269 — — — — — — — — 2,268 — Telecommunication Services 5,114,214 — — — — — (81,965 ) — — 5,032,249 (81,965 ) LLC Interests Consumer Products 3,088,750 — — — — 163,314 52,853 — (463,314 ) 2,841,603 52,853 Real Estate 1,600,492 — — — — — (1,645,741 ) 7,368,085 (1) — 7,322,836 (1,645,741 ) Preferred Stocks Healthcare 10,527,285 — — — — — 54,603 — — 10,581,888 54,603 Total $ 28,500,789 $ — $ — $ 4,465 $ — $ 163,314 $ (1,621,273 ) $ 7,861,246 $ (463,314 ) $ 34,445,226 $ (1,621,273 ) (1) Represents an in-kind transfer to the subreit. The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the three months ended March 31, 2022. Investments: Balance as of Transfers Transfer Net Distribution Net realized Net change in Purchases/ (Sales Balance as of Change in Assets Senior Secured Loans Telecommunication Services $ 962,478 $ — $ — $ — $ — $ — $ — $ 26,711 $ — $ 989,189 $ — Healthcare 4,000,000 — — 3,809 — — 86,191 2,990,000 (4,080,000 )(a) 3,000,000 86,191 Asset-Backed Securities Financials 405,040 — — — — — 11,787 — (16,979 ) 399,848 11,787 Common Stocks Financials 2,208,750 — — — — — (603,450 ) — — 1,605,300 (603,450 ) Real Estate 1,823,000 — — — — — 141,000 — — 1,964,000 141,000 Service 5,172 — — — — — — — — 5,172 — Telecommunication Services 4,706,357 — — — — — (94,456 ) — — 4,611,901 (94,456 ) LLC Interests Consumer Products 2,812,212 — — — — — 169,426 — — 2,981,638 169,426 Real Estate 4,760,162 — — — — (74,603 ) 139,367 — (3,274,285 )(b) 1,550,641 (13,275 ) Preferred Stocks Healthcare — — — — — — — 8,080,000 (a) — 8,080,000 — Total $ 21,683,171 $ — $ — $ 3,809 $ — $ (74,603 ) $ (150,135 ) $ 11,096,711 $ (7,371,264 ) $ 25,187,689 $ (302,777 ) (a) Denotes Sapience’s $4,080,000 promissory notes and paid in kind interest conversion to preferred stock. (b) Denotes SFR II’s LLC Interests conversion into NREF common shares. |
Summary of Quantitative Information about the Company's Level 3 Asset and Liability | The following are summaries of significant unobservable inputs used in the fair valuations of investments categorized within Level 3 of the fair value hierarchy as of March 31, 2023 and December 31, 2022: Investment Fair value at March 31, 2023 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 10,164,438 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.98% - 9.18% (7.08%) 5.60x - 9.95x ( 7.70 Preferred Stock 10,581,888 Option Pricing Model Volatility 40% - 90% (65%) Common Stock 9,126,018 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 11.0% - 13.0% (12.0%) 3.25x - 4.25x ( $0.09 - $0.95 ($0.52) $921.5 40% - 100% $28 Senior Secured Loans 4,565,602 Discounted Cash Flow Discount Rate 10.25% - 13.06% (11.40%) Asset-Backed Securities 7,280 NAV Approach Discount Rate 70.00% Total $ 34,445,226 Investment Fair value at December 31, 2022 Valuation technique Unobservable inputs Range of input value(s) (weighted average) LLC Interest $ 4,689,242 Discounted Cash Flow Multiples Analysis Discount Rate Multiple of EBITDA 4.73% - 8.93% (6.83%) 5.55x - 9.85x (7.70x) Preferred Stock 10,527,285 Option Pricing Model Transaction Indication of Value Volatility Recap Price 40% - 60% (50%) $11.10 Common Stock 9,207,983 Discounted Cash Flow Multiples Analysis Transaction Indication of Value Liquidation Analysis Discount Rate Multiple of EBITDA Unadjusted Price/MHz-PoP Enterprise Value ($mm) Recovery Rate N/A 13.50% - 15.50% (14.50%) 3.25x - 4.25x (3.75x) $0.09 - $0.95 ($0.52) $872 - $969 ($920.5) 40% - 100% (70%) $28 Senior Secured Loans 4,069,243 Discounted Cash Flow Discount Rate 10.25% - 13.08% (11.67%) Asset-Backed Securities 7,036 NAV Approach Discount Rate 70.00% Total $ 28,500,789 |
Summary of Computation of Basic and Diluted Net | The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations: For the three months ended 2023 2022 Net increase (decrease) in net assets resulting from operations $ (977,817 ) $ 1,145,017 Weighted average common shares outstanding 9,699,655 9,990,797 Earnings (loss) per common share-basic and diluted $ (0.10 ) $ 0.11 |
Investment Portfolio (Tables)
Investment Portfolio (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments By Industry [Member] | |
Schedule of Investments [Line Items] | |
Investment Holdings, Schedule of Investments | The following table shows the composition of the Company’s invested assets by industry classification at fair value at March 31, 2023: Fair value Percentage Assets Healthcare $ 21,288,682 43.7 % Real Estate 12,208,413 25.0 % Telecommunication Services 6,134,537 12.6 % Financials 3,139,780 6.4 % Consumer Products 2,841,603 5.8 % Energy 1,781,926 3.7 % Real Estate Investment Trusts (REITs) 1,022,291 2.1 % Media/Telecommunications 269,529 0.6 % Chemicals 42,500 0.1 % Service 2,268 0.0 % Total Assets $ 48,731,529 100.0 % The following table shows the composition of the Company’s invested assets by industry classification at fair value at December 31, 2022: Fair value Percentage Assets Healthcare $ 26,101,074 49.0 % Real Estate 11,613,222 21.7 % Telecommunication Services 6,183,457 11.6 % Consumer Products 3,088,750 5.8 % Financials 3,180,161 6.0 % Energy 1,752,941 3.3 % Real Estate Investment Trusts (REITs) 1,018,779 1.9 % Media/Telecommunications 310,562 0.6 % Chemicals 42,500 0.1 % Service 2,269 0.0 % Total Assets $ 53,293,715 100.0 % |
Type of Investment Debt or Equity [Member] | |
Schedule of Investments [Line Items] | |
Investment Holdings, Schedule of Investments | The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of March 31, 2023: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 13,218,569 $ 8,961,395 18.4 % Senior Secured Loans - Second Lien 1,485,503 1,070,222 2.2 % Asset-Backed Securities 388,541 7,280 0.0 % Corporate Bonds 3,375,246 2,500,245 5.1 % Common Stocks 9,705,017 13,883,249 28.5 % LLC Interests 10,734,196 10,164,439 20.9 % Preferred Stocks 11,829,987 11,981,888 24.6 % Warrants 74,284 162,811 0.3 % Total Assets $ 50,811,343 $ 48,731,529 100.0 % The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of December 31, 2022: Amortized Cost Fair value Percentage of Assets Senior Secured Loans - First Lien $ 14,645,106 $ 11,575,821 21.7 % Senior Secured Loans - Second Lien 2,976,056 2,652,372 5.0 % Asset-Backed Securities 388,541 7,036 0.0 % Corporate Bonds 3,358,783 2,704,917 5.1 % Common Stocks 17,073,102 19,514,684 36.6 % LLC Interests 3,666,112 4,689,242 8.8 % Preferred Stocks 11,829,987 11,967,910 22.5 % Warrants 74,284 181,733 0.3 % Total Assets $ 54,011,971 $ 53,293,715 100.0 % |
Investments By Geography [Member] | |
Schedule of Investments [Line Items] | |
Investment Holdings, Schedule of Investments | The following table shows the composition of the Company’s invested assets by geographic classification at March 31, 2023: Geography Fair value Percentage Assets Cayman Islands (1) $ 7,280 0.0 % Luxembourg (1) 1,331,038 2.7 % United States 47,393,211 97.3 % Total Assets $ 48,731,529 100.0 % (1) Investment denominated in USD . The following table shows the composition of the Company’s invested assets by geographic classification at December 31, 2022: Geography Fair value Percentage Assets Cayman Islands (1) $ 7,036 0.0 % Luxembourg (1) 1,318,346 2.5 % United States 51,968,333 97.5 % Total Assets $ 53,293,715 100.0 % (1) Investment denominated in USD. |
Related Party Transactions an_2
Related Party Transactions and Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of fee waivers and expense reimbursements due from the adviser which may become subject to recoupment | The following table reflects the fee waivers and expense reimbursements due from the Adviser as of March 31, 2023, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative other expense Yearly expense limitation Yearly cumulative Quarterly Recoupment eligibility March 31, 2023 $ 208,486 $ 126,628 $ 81,858 $ 81,858 March 31, 2026 Period ended Yearly cumulative other expense Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2022 $ 913,273 $ 535,679 $ 377,594 $ 92,216 December 31, 2025 September 30, 2022 $ 678,333 $ 392,955 $ 285,378 $ 124,667 September 30, 2025 June 30, 2022 $ 434,019 $ 273,308 $ 160,711 $ 98,950 June 30, 2025 March 31, 2022 $ 211,896 $ 150,135 $ 61,761 $ 61,761 March 31, 2025 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative other expense Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2021 $ 892,640 $ 597,379 $ 295,261 $ 94,762 December 31, 2024 September 30, 2021 $ 664,052 $ 463,553 $ 200,499 $ 68,134 September 30, 2024 June 30, 2021 $ 436,866 $ 304,501 $ 132,365 $ 68,919 June 30, 2024 March 31, 2021 $ 220,126 $ 156,680 $ 63,446 $ 63,446 March 31, 2024 The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, which may become subject to recoupment by the Adviser. Period ended Yearly cumulative Yearly expense Yearly cumulative Quarterly Recoupment December 31, 2020 $ 989,447 $ 639,959 $ 349,488 $ 101,541 December 31, 2023 September 30, 2020 687,228 439,281 247,947 94,039 September 30, 2023 June 30, 2020 445,585 291,677 153,908 (30,539 ) June 30, 2023 March 31, 2020 257,226 72,779 184,447 — Expired |
Affiliated Investments (Tables)
Affiliated Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Summary of affiliated issuers of the company | The table below shows affiliated issuers of the Company as of March 31, 2023: Affiliated investments Shares at December 31, 2022 Fair value as of December 31, 2022 Transfers Purchases Sales Realized Change in Fair value as of March 31, 2023 Shares at March 31, 2023 Affiliated NexPoint Residential Trust, Inc. 23,409 $ 1,018,779 $ — $ — $ — $ — $ 3,512 $ 1,022,291 23,409 $ 9,832 NexPoint Capital (Senior 100 1,176,024 7,368,085 463,314 — — (1,639,454 ) 7,367,969 464,041 — NexPoint Real Estate Finance, Inc. 481,670 7,653,730 (7,368,085 ) — — — 1,777,618 2,063,263 131,670 90,194 SFR WLIF III, LLC 451,112 424,468 — — — — (6,287 ) 418,181 451,112 11,430 Total affiliated investments 956,291 $ 10,273,001 $ — $ 463,314 $ — $ — $ 135,389 $ 10,871,704 1,070,232 $ 111,456 |
Financial Highlights (Tables)
Financial Highlights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Summary of share outstanding | Selected data for a share outstanding throughout the three months ended March 31, 2023 and March 31, 2022 is as follows: For the Three Months Ended For the Three Months March 31, 2023 March 31, 2022 Common shares per share operating performance: Net asset value, beginning of period $ 5.55 $ 6.32 Income from investment operations: Net investment income (1) 0.04 0.05 Net realized and unrealized gain (loss) (0.14 ) 0.07 Total from investment operations (0.10 ) 0.12 Less distribution declared to common shareholders: From net investment income (0.09 ) (0.09 ) Total distributions declared to common shareholders (0.09 ) (0.09 ) Capital share transaction Issuance of common stock (2) — — Shares tendered (1) — — Net asset value, end of period $ 5.36 $ 6.35 Net asset value total return (3)(4) (1.80 )% 1.83 % Ratio and supplemental data: Net assets, end of period (in 000’s) $ 51,159 $ 62,947 Shares outstanding, end of period 9,548,899 9,918,671 Common share information at end of period: Ratios based on weighted average net assets of common shares: Gross operating expenses (5) 4.05 % 3.72 % Fees and expenses waived or reimbursed (5) (0.62 )% (0.39 )% Net operating expenses (5) 3.43 % 3.33 % Net investment income (loss) before fees (5) 2.14 % 2.73 % Net investment income (loss) after fees (5) 2.76 % 3.12 % Portfolio turnover rate (4) 1 % 26 % Asset coverage ratio — % — % Weighted average commission rate paid (6) $ — $ — (1) Per share data was calculated using weighted average shares outstanding during the period. (2) The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date times (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding at the end of the period. The Company’s continuous public offering ended on February 14, 2018. (3) Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions, and assume no sales charge. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s Dividend Reinvestment Plan. Had the Adviser not absorbed a portion of expenses, total returns would have been lower. (4) Not annualized. (5) Annualized. (6) Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of portfolio shares purchased and sold for which commissions were charged. |
Organization - Additional Infor
Organization - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization [Line Items] | ||
Proceeds from private placement issue | $ 10,000,000 | |
Stock issued during period new shares issued in private placement | 2,549,002 | |
Stock issued during period value, reinvestment of dividends | $ 294,055 | $ 306,152 |
Next Point Advisors L.P [Member] | ||
Organization [Line Items] | ||
Equity method investments ownership percentage | 26.70% | |
Stock issued during period value, reinvestment of dividends | $ 13,700,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash and cash equivalents | $ 1,131,784 | $ 1,629,846 | |
Restricted cash and cash equivalents | 357,958 | 209,418 | |
Securities sold short value | $ 0 | $ 0 | |
Investments sold not yet purchased percentage of net assets | 25% | 25% | |
Fee Income | $ 0 | $ 0 | |
Fair value of options held | $ 0 | $ 0 | |
Offering costs as a percentage of total proceeds raised | 1% | 1% | |
Stock issuance costs | $ 0 | $ 0 | |
Dividend per share declared | $ 0.09 | $ 0.09 | |
Money Market Funds [Member] | |||
Cash and cash equivalents | $ 773,826 | $ 1,420,428 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Investments Using Significant Unobservable Input (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Fair value | $ 48,731,529 | $ 53,293,715 |
Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Fair value | $ 34,445,226 | $ 28,500,789 |
Asset-Backed Securities [Member] | Asset Backed Securities One [Member] | Grayson Investor Corp [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Asset-Backed Securities | Asset-Backed Securities |
Fair value | $ 7,267 | $ 7,023 |
Asset-Backed Securities [Member] | Asset Backed Securities One [Member] | PAMCO CLO 1997-1A B [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Asset-Backed Securities | Asset-Backed Securities |
Fair value | $ 13 | $ 13 |
Common Stock [Member] | Common Stock One [Member] | American Banknote Corp [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | Common Stocks |
Fair value | $ 1,732,500 | $ 1,732,500 |
Common Stock [Member] | Common Stock One [Member] | IQHQ, Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | Common Stocks |
Fair value | $ 2,359,000 | $ 2,359,000 |
Common Stock [Member] | Common Stock One [Member] | TerreStar Corp [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | Common Stocks |
Fair value | $ 5,032,249 | $ 5,114,214 |
Common Stock [Member] | Common Stock One [Member] | Wayne Services Legacy, Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Common Stocks | Common Stocks |
Fair value | $ 2,268 | $ 2,269 |
LLC Interests [Member] | LLC Interests One [Member] | NexPoint Capital REIT, LLC [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | LLC Interests | LLC Interests |
Fair value | $ 6,904,655 | $ 1,176,024 |
LLC Interests [Member] | LLC Interests One [Member] | SFR WLIF III, LLC [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | LLC Interests | LLC Interests |
Fair value | $ 418,181 | $ 424,468 |
LLC Interests [Member] | LLC Interests One [Member] | US Gaming, LLC [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | LLC Interests | LLC Interests |
Fair value | $ 2,841,603 | $ 3,088,750 |
Preferred Stock [Member] | Preferred Stock One [Member] | Apnimed, Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 1,499,989 | $ 1,499,989 |
Preferred Stock [Member] | Series B Preferred Stock [Member] | Sapience Therapeutics, Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 4,581,906 | $ 4,549,525 |
Preferred Stock [Member] | Series B One Preferred Stock [Member] | Sapience Therapeutics, Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 3,700,000 | $ 3,677,777 |
Preferred Stock [Member] | Series C-2 preferred stock [Member] | Apnimed, Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Preferred Stocks | Preferred Stocks |
Fair value | $ 799,993 | $ 799,994 |
Senior Secured Loans [Member] | Senior Secured Loans One [Member] | CCS Medical, Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | Senior Secured Loans |
Fair value | $ 3,000,000 | $ 3,000,000 |
Senior Secured Loans [Member] | Senior Secured Loans One [Member] | NexPoint Capital REIT, LLC. [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | |
Fair value | $ 463,314 | |
Senior Secured Loans [Member] | Senior Secured Loans One [Member] | TerreStar Corp [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | Senior Secured Loans |
Fair value | $ 836,016 | $ 810,953 |
Senior Secured Loans [Member] | Senior Secured Loans Two [Member] | TerreStar Corp [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | Senior Secured Loans |
Fair value | $ 197,921 | $ 191,988 |
Senior Secured Loans [Member] | Senior Secured Loans Three [Member] | TerreStar Corp [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | Senior Secured Loans |
Fair value | $ 35,360 | $ 34,300 |
Senior Secured Loans [Member] | Senior Secured Loans Four [Member] | TerreStar Corp [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Using Significant Unobservable Input [Line Items] | ||
Description of type of investment | Senior Secured Loans | Senior Secured Loans |
Fair value | $ 32,991 | $ 32,002 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Investments Categorize into Fair Value Hierarchy (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | $ 48,731,529 | $ 53,293,715 |
Senior Secured Loans [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 8,466,015 | 13,158,950 |
Senior Secured Loans [Member] | Telcommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,102,288 | 1,069,243 |
Senior Secured Loans [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 463,314 | |
Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 7,280 | 7,036 |
Corporate Bonds [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,240,779 | 2,414,839 |
Corporate Bonds [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 259,466 | 290,078 |
Common Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,732,500 | 1,732,500 |
Common Stock [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 42,500 | 42,500 |
Common Stock [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,629,178 | 1,591,692 |
Common Stock [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 4,422,263 | 10,012,730 |
Common Stock [Member] | Real Estate Investment Trusts [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,022,291 | 1,018,779 |
Common Stock [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,268 | 2,269 |
Common Stock [Member] | TeleCommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 5,032,249 | 5,114,214 |
LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 7,322,836 | 1,600,492 |
LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,841,603 | 3,088,750 |
Preferred Stock [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 10,581,888 | 10,527,285 |
Preferred Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,400,000 | 1,440,625 |
Warrant [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 10,063 | 20,484 |
Warrant [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 152,748 | 161,249 |
Fair Value, Inputs, Level 1 [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,085,554 | 8,672,509 |
Fair Value, Inputs, Level 1 [Member] | Senior Secured Loans [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Senior Secured Loans [Member] | Telcommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,063,263 | 7,653,730 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | Real Estate Investment Trusts [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,022,291 | 1,018,779 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | TeleCommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Preferred Stock [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Preferred Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Warrant [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Warrant [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 11,200,749 | 16,120,417 |
Fair Value, Inputs, Level 2 [Member] | Senior Secured Loans [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 5,466,015 | 10,158,950 |
Fair Value, Inputs, Level 2 [Member] | Senior Secured Loans [Member] | Telcommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,240,779 | 2,414,839 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 259,466 | 290,078 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 42,500 | 42,500 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,629,178 | 1,591,692 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | Real Estate Investment Trusts [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | TeleCommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Preferred Stock [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Preferred Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,400,000 | 1,440,625 |
Fair Value, Inputs, Level 2 [Member] | Warrant [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 10,063 | 20,484 |
Fair Value, Inputs, Level 2 [Member] | Warrant [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 152,748 | 161,249 |
Fair Value, Inputs, Level 3 [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 34,445,226 | 28,500,789 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Loans [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 3,000,000 | 3,000,000 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Loans [Member] | Telcommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,102,288 | 1,069,243 |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Loans [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 463,314 | |
Fair Value, Inputs, Level 3 [Member] | Asset Backed Securities One [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 7,280 | 7,036 |
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 1,732,500 | 1,732,500 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | Chemicals [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,359,000 | 2,359,000 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | Real Estate Investment Trusts [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | Service [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,268 | 2,269 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | TeleCommunication Services [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 5,032,249 | 5,114,214 |
Fair Value, Inputs, Level 3 [Member] | LLC Interests [Member] | Real Estate [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 7,322,836 | 1,600,492 |
Fair Value, Inputs, Level 3 [Member] | LLC Interests [Member] | Consumer Products [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 2,841,603 | 3,088,750 |
Fair Value, Inputs, Level 3 [Member] | Preferred Stock [Member] | Health Care [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 10,581,888 | 10,527,285 |
Fair Value, Inputs, Level 3 [Member] | Preferred Stock [Member] | Financials [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Warrant [Member] | Media And Telecommunications [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Warrant [Member] | Energy [Member] | ||
Disclosure In Tabular Form Of Investments Cateogrized Into Fair Value Hierarchy [Line Items] | ||
Total asset investment | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Changes in the Company's Level 3 investments (Detail) - Investments [Member] - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | $ 28,500,789 | $ 21,683,171 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 4,465 | 3,809 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 163,314 | (74,603) | ||
Net change in unrealized gains/ (losses) | (1,621,273) | (150,135) | ||
Purchases/ PIK | 7,861,246 | 11,096,711 | ||
Sales and redemptions | (463,314) | (7,371,264) | ||
Balance as of Ending | 34,445,226 | 25,187,689 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (1,621,273) | (302,777) | ||
Senior Secured Loans [Member] | Telcommunication Services [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 1,069,243 | 962,478 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 3,198 | 0 | ||
Purchases/ PIK | 29,847 | 26,711 | ||
Sales and redemptions | 0 | 0 | ||
Balance as of Ending | 1,102,288 | 989,189 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 3,198 | 0 | ||
Senior Secured Loans [Member] | Health Care [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 3,000,000 | 4,000,000 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 4,465 | 3,809 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | (4,465) | 86,191 | ||
Purchases/ PIK | 0 | 2,990,000 | ||
Sales and redemptions | 0 | (4,080,000) | [1] | |
Balance as of Ending | 3,000,000 | 3,000,000 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (4,465) | 86,191 | ||
Senior Secured Loans [Member] | Real Estate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Net amortization (accretion) of premium/ (discount) | 0 | |||
Distribution to Return Capital | 0 | |||
Net realized gains/ (losses) | 0 | |||
Net change in unrealized gains/ (losses) | 0 | |||
Purchases/ PIK | 463,314 | |||
Sales and redemptions | 0 | |||
Balance as of Ending | 463,314 | |||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | |||
Asset Backed Securities One [Member] | Financials [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 7,036 | 405,040 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 244 | 11,787 | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | 0 | (16,979) | ||
Balance as of Ending | 7,280 | 399,848 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 244 | 11,787 | ||
Common Stock [Member] | Financials [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 1,732,500 | 2,208,750 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 0 | (603,450) | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | 0 | 0 | ||
Balance as of Ending | 1,732,500 | 1,605,300 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | (603,450) | ||
Common Stock [Member] | Real Estate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 2,359,000 | 1,823,000 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 0 | 141,000 | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | 0 | 0 | ||
Balance as of Ending | 2,359,000 | 1,964,000 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | 141,000 | ||
Common Stock [Member] | Service [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 2,269 | 5,172 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 0 | 0 | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | 0 | 0 | ||
Balance as of Ending | 2,268 | 5,172 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 0 | 0 | ||
Common Stock [Member] | TeleCommunication Services [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 5,114,214 | 4,706,357 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | (81,965) | (94,456) | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | 0 | 0 | ||
Balance as of Ending | 5,032,249 | 4,611,901 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (81,965) | (94,456) | ||
LLC Interests [Member] | Real Estate [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 1,600,492 | 4,760,162 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | (74,603) | ||
Net change in unrealized gains/ (losses) | (1,645,741) | 139,367 | ||
Purchases/ PIK | 7,368,085 | [2] | 0 | |
Sales and redemptions | 0 | (3,274,285) | [3] | |
Balance as of Ending | 7,322,836 | 1,550,641 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | (1,645,741) | (13,275) | ||
LLC Interests [Member] | Consumer Products [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 3,088,750 | 2,812,212 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 163,314 | 0 | ||
Net change in unrealized gains/ (losses) | 52,853 | 169,426 | ||
Purchases/ PIK | 0 | 0 | ||
Sales and redemptions | (463,314) | 0 | ||
Balance as of Ending | 2,841,603 | 2,981,638 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | 52,853 | 169,426 | ||
Preferred Stock [Member] | Health Care [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of beginning | 10,527,285 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net amortization (accretion) of premium/ (discount) | 0 | 0 | ||
Distribution to Return Capital | 0 | 0 | ||
Net realized gains/ (losses) | 0 | 0 | ||
Net change in unrealized gains/ (losses) | 54,603 | 0 | ||
Purchases/ PIK | 0 | 8,080,000 | [1] | |
Sales and redemptions | 0 | 0 | ||
Balance as of Ending | 10,581,888 | 8,080,000 | ||
Change in unrealized gain/(loss) on Level 3 securities still held at period end | $ 54,603 | $ 0 | ||
[1]Denotes Sapience’s $4,080,000 promissory notes and paid in kind interest conversion to preferred stock.[2]Represents an in-kind transfer to the subreit.[3]Denotes SFR II’s LLC Interests conversion into NREF common shares. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Changes in the Company's Level 3 investments (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Preferred Stock [Member] | Promissory Note [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt Conversion, Converted Instrument, Amount | $ 4,080,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Quantitative Information about the Company's Level 3 Asset and Liability (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 48,731,529 | $ 53,293,715 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 34,445,226 | 28,500,789 |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 4,689,242 | |
Valuation technique | Discounted Cash Flow | |
Unobservable inputs | Discount Rate | |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 10,164,438 | |
Valuation technique | Discounted Cash Flow | |
Unobservable inputs | Discount Rate | |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 9.18 | 8.93 |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 4.98 | 4.73 |
Measurement Input, Discount Rate [Member] | LLC Interests [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 7.08 | 6.83 |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 9,207,983 | |
Valuation technique | Discounted Cash Flow | |
Unobservable inputs | Discount Rate | |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 15.5 | |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 13.5 | |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 14.5 | |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 9,126,018 | |
Valuation technique | Discounted Cash Flow | |
Unobservable inputs | Discount Rate | |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 13 | |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 11 | |
Measurement Input, Discount Rate [Member] | Common Stock [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 12 | |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 4,565,602 | $ 4,069,243 |
Valuation technique | Discounted Cash Flow | Discounted Cash Flow |
Unobservable inputs | Discount Rate | Discount Rate |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 13.06 | 13.08 |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 10.25 | 10.25 |
Measurement Input, Discount Rate [Member] | Senior Secured Loans [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 11.4 | 11.67 |
Measurement Input, Discount Rate [Member] | Asset-Backed Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 7,280 | $ 7,036 |
Valuation technique | NAV Approach | NAV Approach |
Unobservable inputs | Discount Rate | Discount Rate |
Range of input values (weighted average) | 70 | 70 |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Multiples Analysis | Multiples Analysis |
Unobservable inputs | Multiple of EBITDA | Multiple of EBITDA |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 9.95 | 9.85 |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 5.6 | 5.55 |
Measurement Input, EBITDA Multiple [Member] | LLC Interests [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 7.7 | 7.7 |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Multiples Analysis | |
Unobservable inputs | Multiple of EBITDA | |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 4.25 | |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 3.25 | |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 3.75 | |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Multiples Analysis | |
Unobservable inputs | Multiple of EBITDA | |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 4.25 | |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 3.25 | |
Measurement Input, EBITDA Multiple [Member] | Common Stock [Member] | Valuation Technique Multiple Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 3.75 | |
Measurement Input Unadjusted Price [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | Unadjusted Price/MHz-PoP | Unadjusted Price/MHz-PoP |
Measurement Input Unadjusted Price [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 0.95 | 0.95 |
Measurement Input Unadjusted Price [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 0.09 | 0.09 |
Measurement Input Unadjusted Price [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 0.52 | 0.52 |
Measurement Input Enterprise Value [Member] | Common Stock [Member] | Valuation Technique Transaction Indication Of Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Transaction Indication of Value | |
Unobservable inputs | Enterprise Value ($mm) | |
Range of input values (weighted average) | 921.5 | |
Measurement Input Enterprise Value [Member] | Common Stock [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Transaction Indication of Value | |
Unobservable inputs | Enterprise Value ($mm) | |
Measurement Input Enterprise Value [Member] | Common Stock [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 969 | |
Measurement Input Enterprise Value [Member] | Common Stock [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 872 | |
Measurement Input Enterprise Value [Member] | Common Stock [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 920.5 | |
Measurement Input Recovery Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Liquidation Analysis | |
Unobservable inputs | Recovery Rate | |
Measurement Input Recovery Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 100 | |
Measurement Input Recovery Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 40 | |
Measurement Input Recovery Rate [Member] | Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 70 | |
Measurement Input Recovery Rate [Member] | Common Stock [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Liquidation Analysis | |
Unobservable inputs | Recovery Rate | |
Measurement Input Recovery Rate [Member] | Common Stock [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 100 | |
Measurement Input Recovery Rate [Member] | Common Stock [Member] | Valuation Technique Liquidation Analysis [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 40 | |
Measurement Input NAV Multiple [Member] | Common Stock [Member] | Valuation Technique Net Asset Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Net Asset Value | Net Asset Value |
Range of input values (weighted average) | 28 | 28 |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 10,527,285 | |
Valuation technique | Option Pricing Model | |
Unobservable inputs | Volatility | |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 60 | |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 40 | |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 50 | |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 10,581,888 | |
Valuation technique | Option Pricing Model | |
Unobservable inputs | Volatility | |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 90 | |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 40 | |
Measurement Input, Option Volatility [Member] | Preferred Stock [Member] | Valuation Technique, Option Pricing Model [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range of input values (weighted average) | 65 | |
Measurement Input, Cap Rate [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique | Transaction Indication of Value | |
Unobservable inputs | Recap Price | |
Range of input values (weighted average) | 11.1 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Computation of Basic and Diluted Net (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||
Net increase (decrease) in net assets resulting from operations | $ (977,817) | $ 1,145,017 |
Weighted average shares outstanding: Basic | 9,699,655 | 9,990,797 |
Weighted average shares outstanding: Diluted | 9,699,655 | 9,990,797 |
Earnings (loss) per share: Basic | $ (0.1) | $ 0.11 |
Earnings (loss) per share: Diluted | $ (0.1) | $ 0.11 |
Investment Portfolio - Summary
Investment Portfolio - Summary Of Investment Holdings, Schedule of Investments (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Fair value | $ 48,731,529 | $ 53,293,715 |
Percentage | 100% | 100% |
Healthcare | ||
Fair value | $ 21,288,682 | $ 26,101,074 |
Percentage | 43.70% | 49% |
Real Estate | ||
Fair value | $ 12,208,413 | $ 11,613,222 |
Percentage | 25% | 21.70% |
Telecommunication Services | ||
Fair value | $ 6,134,537 | $ 6,183,457 |
Percentage | 12.60% | 11.60% |
Financials | ||
Fair value | $ 3,139,780 | $ 3,180,161 |
Percentage | 6.40% | 6% |
Consumer Products | ||
Fair value | $ 2,841,603 | $ 3,088,750 |
Percentage | 5.80% | 5.80% |
Energy | ||
Fair value | $ 1,781,926 | $ 1,752,941 |
Percentage | 3.70% | 3.30% |
Real Estate Investment Trusts (REITs) | ||
Fair value | $ 1,022,291 | $ 1,018,779 |
Percentage | 2.10% | 1.90% |
Media/Telecommunications | ||
Fair value | $ 269,529 | $ 310,562 |
Percentage | 0.60% | 0.60% |
Chemicals | ||
Fair value | $ 42,500 | $ 42,500 |
Percentage | 0.10% | 0.10% |
Service | ||
Fair value | $ 2,268 | $ 2,269 |
Percentage | 0% | 0% |
Investment Portfolio - Summar_2
Investment Portfolio - Summary Of Investment Company Assets By Industry Classification At Fair Value (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | $ 50,811,343 | $ 54,011,971 |
Fair Value | $ 48,731,529 | $ 53,293,715 |
Percentage of Portfolio (at Fair Value) | 100% | 100% |
Senior Secured Loans - First Lien | ||
Amortized Cost | $ 13,218,569 | $ 14,645,106 |
Fair Value | $ 8,961,395 | $ 11,575,821 |
Percentage of Portfolio (at Fair Value) | 18.40% | 21.70% |
Senior Secured Loans - Second Lien | ||
Amortized Cost | $ 1,485,503 | $ 2,976,056 |
Fair Value | $ 1,070,222 | $ 2,652,372 |
Percentage of Portfolio (at Fair Value) | 2.20% | 5% |
Asset-Backed Securities | ||
Amortized Cost | $ 388,541 | $ 388,541 |
Fair Value | $ 7,280 | $ 7,036 |
Percentage of Portfolio (at Fair Value) | 0% | 0% |
Corporate Bonds | ||
Amortized Cost | $ 3,375,246 | $ 3,358,783 |
Fair Value | $ 2,500,245 | $ 2,704,917 |
Percentage of Portfolio (at Fair Value) | 5.10% | 5.10% |
Common Stock | ||
Amortized Cost | $ 9,705,017 | $ 17,073,102 |
Fair Value | $ 13,883,249 | $ 19,514,684 |
Percentage of Portfolio (at Fair Value) | 28.50% | 36.60% |
LLC Interests | ||
Amortized Cost | $ 10,734,196 | $ 3,666,112 |
Fair Value | $ 10,164,439 | $ 4,689,242 |
Percentage of Portfolio (at Fair Value) | 20.90% | 8.80% |
Preferred Stocks | ||
Amortized Cost | $ 11,829,987 | $ 11,829,987 |
Fair Value | $ 11,981,888 | $ 11,967,910 |
Percentage of Portfolio (at Fair Value) | 24.60% | 22.50% |
Warrants | ||
Amortized Cost | $ 74,284 | $ 74,284 |
Fair Value | $ 162,811 | $ 181,733 |
Percentage of Portfolio (at Fair Value) | 0.30% | 0.30% |
Investment Portfolio - Summar_3
Investment Portfolio - Summary Of the Company's invested assets by geographic classification (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value | $ 48,731,529 | $ 53,293,715 | |
Percentage | 100% | 100% | |
Cayman Islands | |||
Fair Value | [1] | $ 7,280 | $ 7,036 |
Percentage | [1] | 0% | 0% |
Luxembourg | |||
Fair Value | [1] | $ 1,331,038 | $ 1,318,346 |
Percentage | [1] | 2.70% | 2.50% |
United States | |||
Fair Value | $ 47,393,211 | $ 51,968,333 | |
Percentage | 97.30% | 97.50% | |
[1]Investment denominated in USD . |
Related Party Transactions an_3
Related Party Transactions and Arrangements - Schedule Of Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
March 31, 2026 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 208,486 | ||||||||||||
Yearly expense limitation | 126,628 | ||||||||||||
Yearly cumulative expense reimbursement | 81,858 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 81,858 | ||||||||||||
Recoupment eligibility expiration | Mar. 31, 2026 | ||||||||||||
December 31, 2025 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 913,273 | ||||||||||||
Yearly expense limitation | 535,679 | ||||||||||||
Yearly cumulative expense reimbursement | 377,594 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 92,216 | ||||||||||||
Recoupment eligibility expiration | Dec. 31, 2025 | ||||||||||||
September 30, 2025 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 678,333 | ||||||||||||
Yearly expense limitation | 392,955 | ||||||||||||
Yearly cumulative expense reimbursement | 285,378 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 124,667 | ||||||||||||
Recoupment eligibility expiration | Sep. 30, 2025 | ||||||||||||
June 30, 2025 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 434,019 | ||||||||||||
Yearly expense limitation | 273,308 | ||||||||||||
Yearly cumulative expense reimbursement | 160,711 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 98,950 | ||||||||||||
Recoupment eligibility expiration | Jun. 30, 2025 | ||||||||||||
March 31, 2025 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 211,896 | ||||||||||||
Yearly expense limitation | 150,135 | ||||||||||||
Yearly cumulative expense reimbursement | 61,761 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 61,761 | ||||||||||||
Recoupment eligibility expiration | Mar. 31, 2025 | ||||||||||||
December 31, 2024 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 892,640 | ||||||||||||
Yearly expense limitation | 597,379 | ||||||||||||
Yearly cumulative expense reimbursement | 295,261 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 94,762 | ||||||||||||
Recoupment eligibility expiration | Dec. 31, 2024 | ||||||||||||
September 30, 2024 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 664,052 | ||||||||||||
Yearly expense limitation | 463,553 | ||||||||||||
Yearly cumulative expense reimbursement | 200,499 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 68,134 | ||||||||||||
Recoupment eligibility expiration | Sep. 30, 2024 | ||||||||||||
June 30, 2024 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 436,866 | ||||||||||||
Yearly expense limitation | 304,501 | ||||||||||||
Yearly cumulative expense reimbursement | 132,365 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 68,919 | ||||||||||||
Recoupment eligibility expiration | Jun. 30, 2024 | ||||||||||||
March 31, 2024 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 220,126 | ||||||||||||
Yearly expense limitation | 156,680 | ||||||||||||
Yearly cumulative expense reimbursement | 63,446 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 63,446 | ||||||||||||
Recoupment eligibility expiration | Mar. 31, 2024 | ||||||||||||
December 31, 2023 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 989,447 | ||||||||||||
Yearly expense limitation | 639,959 | ||||||||||||
Yearly cumulative expense reimbursement | 349,488 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 101,541 | ||||||||||||
Recoupment eligibility expiration | Dec. 31, 2023 | ||||||||||||
September 30, 2023 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 687,228 | ||||||||||||
Yearly expense limitation | 439,281 | ||||||||||||
Yearly cumulative expense reimbursement | 247,947 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 94,039 | ||||||||||||
Recoupment eligibility expiration | Sep. 30, 2023 | ||||||||||||
June 30, 2023 [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 445,585 | ||||||||||||
Yearly expense limitation | 291,677 | ||||||||||||
Yearly cumulative expense reimbursement | 153,908 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ (30,539) | ||||||||||||
Recoupment eligibility expiration | Jun. 30, 2023 | ||||||||||||
Expiration [Member] | |||||||||||||
Fee Waivers And Expense Reimbursements Due From The Adviser Which May Become Subject To Recoupment [Line Items] | |||||||||||||
Yearly cumulative other expense | $ 257,226 | ||||||||||||
Yearly expense limitation | 72,779 | ||||||||||||
Yearly cumulative expense reimbursement | 184,447 | ||||||||||||
Quarterly recoupable/ (recouped) amount | $ 0 | ||||||||||||
Recoupment eligibility expired | Expired |
Related Party Transactions an_4
Related Party Transactions and Arrangements - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Base Management Fee Calculated Annual Rate Of Percentage Of Average Value Of Gross Assets | 2% | ||
Investment Advisory Fee payable incurred during period | $ 265,381 | $ 299,270 | |
Maximum Recoupment Of Other Expenses Exceeds TheAnnual Rate Percentage Of Average Gross Assets | 3.40% | ||
Expense reimbursements amount that are eligible for recoupment by the adviser expired | $ 184,447 | ||
Subordinated Incentive Fee On Income Is Determined And Payable Quarterly In Arrears Equals Percentage Of Pre Incentive Fee Net Investment Income | 20% | ||
Hurdle Rate Expressed As Rate of Return ON Net Assets Equal To Percentage Per Quarter | 1.875% | ||
Hurdle Rate | 1.875% | ||
Pre Incentive Fee Net Investment Income For Quarter Equals Percentage Of Net Assets At The End Of Quarter | 2.34375% | ||
Catch UP Fee Receive By The Adviser Percentage Of The Pre Incentive Fee Net Investment Income From The Quarter | 20% | ||
Percentage Of Incentive Fee Capital Gains Is Determined And Payable In Arrears As At End Of Each Calender Year | 20% | ||
Incentive fee incurred on capital gains | $ 0 | 0 | |
Aggregate Accrued Incentive Fees On Capital Gains | 0 | ||
Payment Of Incentive fees With Respect TO Realized Gains To The Adviser | $ 0 | ||
Minimum Reimbursement Amount As A Percentage Of Average Gross Assets | 0.40% | ||
Administration fees payable to related party incurred during period | $ 52,321 | 59,601 | |
Annual Rate Percentage Of Average Gross Assets | 3.40% | ||
Organization costs and offering costs are limited to percentage of total gross proceeds raised in the offering | 1% | ||
Cumulative Aggregate Amount Of Organization And Offering Costs | $ 5,327,574 | ||
Adviser Forfeited The Right To Reimbursement of The Remaining Amount Of Costs Subsequent To Termination Of The Offering | 4,305,091 | ||
Annual Retainer Amount Payable IN Quarterly Installments To Related Party Oversees All Of The Portfolios In The Fund Complex | 150,000 | ||
Annual Retainer Amount Payable In Quarterly Installments To Related Party Who Does Not Oversees All Portfolios On Prorated Basis Of Who Oversees All Portfolios | 150,000 | ||
Additional Payment Amount Eligible To Receive By Related Party Payable In Quarterly Installments | 10,000 | ||
Directors Fee Expense | 4,967 | 3,731 | |
Director Fee Expense Payable Amount | 0 | ||
Expense Limitation Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Receivable from advisor | $ 81,858 | $ 92,216 | |
As Per Agreement Contractually Obligated To Waive Fees And If Necessary Pay Or Reimburse Certain Other Expenses To Percentage Of Quarter End Value Of The Gross Assets | 1% | ||
As Per Agreement Obligation Renewal period | one-year | ||
As Per Agreement Written Notice Period For Termination | 60 days | ||
Cumulative Total Of Fees Waived By Adviser Under Agreement Which Are Recoupable | $ 919,754 | ||
Advisory Fees And Administration Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Payable to Adviser | 317,702 | $ 314,993 | |
Adviser [Member] | |||
Related Party Transaction [Line Items] | |||
Administration fees payable to related party incurred during period | 52,321 | 59,601 | |
Voluntarily reimburse amount for unrealized losses | 0 | $ 0 | |
Cumulative committed amount to voluntarily reimburse the unrealized losses | $ 2,275,000 |
U.S. Federal Income Tax Infor_2
U.S. Federal Income Tax Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Percentage of Distribution to Shareholders,investment company taxable income | 90% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 98% |
Effective Income Tax Rate Reconciliation, Disposition of Asset, Percent | 98.20% |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||
Minimum limit of shares to be repurchased, percent | 10% | 2.50% |
Percentage of shares tobe issued under ceiling limit of net asset value per share | 2.50% | |
Minimum notice period of shares to be suspend or terminate | 30% | |
Stock Repurchased During Period, Shares | 0 | |
First Quarter Tender Offer [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Minimum limit of shares to be repurchased, percent | 1.86% | |
Percentage of share offered to purchase for cash | 2.50% | |
Stock Repurchase Program Expiration Date | Mar. 24, 2023 | |
Stock Repurchased During Period, Shares | 181,298 |
Economic Dependency and Commi_2
Economic Dependency and Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Other Commitments [Line Items] | ||
Commitments and Contingencies | $ 0 | $ 0 |
Unfunded Loan Commitment [Member] | ||
Other Commitments [Line Items] | ||
Commitments and Contingencies | $ 0 |
Market and Other Risk Factors -
Market and Other Risk Factors - Additional Information (Detail) - USD ($) $ in Billions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2023 | Dec. 31, 2020 | |
Stimulus Relief [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Off balance sheet asset face amount | $ 900 | ||
Coronavirus Aid, Relief, and Economic Security Act [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Funds alloted gto overcome the pandemic and economic distress | $ 2,200 | ||
U.S. Federal Reserve [Member] | Coronavirus Aid, Relief, and Economic Security Act [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Funds alloted gto overcome the pandemic and economic distress | $ 1,500 | ||
U.S. Federal Reserve [Member] | Coronavirus Aid, Relief, and Economic Security Act [Member] | American Rescue Plan Act [Member] | |||
Unusual Risk or Uncertainty [Line Items] | |||
Funds alloted gto overcome the pandemic and economic distress | $ 1,900 |
Affiliated Investments - Summar
Affiliated Investments - Summary of Affiliated Issuers of the Company (Detail) | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Investments in and Advances to Affiliates [Line Items] | |
Shares at the beginning period | shares | 956,291 |
Fair value at the beginning period | $ 10,273,001 |
Transfers in (out) (at cost) | 0 |
Purchases | 463,314 |
Sales | 0 |
Realized gains (losses) | 0 |
Change in unrealized appreciation (depreciation) | 135,389 |
Affiliated Dividend income | $ 111,456 |
Shares at the ending period | shares | 1,070,232 |
Fair value at the ending period | $ 10,871,704 |
NexPoint Residential Trust, Inc. [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Shares at the beginning period | shares | 23,409 |
Fair value at the beginning period | $ 1,018,779 |
Transfers in (out) (at cost) | 0 |
Purchases | 0 |
Sales | 0 |
Realized gains (losses) | 0 |
Change in unrealized appreciation (depreciation) | 3,512 |
Affiliated Dividend income | $ 9,832 |
Shares at the ending period | shares | 23,409 |
Fair value at the ending period | $ 1,022,291 |
NexPoint Capital REIT, LLC [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Shares at the beginning period | shares | 100 |
Fair value at the beginning period | $ 1,176,024 |
Transfers in (out) (at cost) | 7,368,085 |
Purchases | 463,314 |
Sales | 0 |
Realized gains (losses) | 0 |
Change in unrealized appreciation (depreciation) | (1,639,454) |
Affiliated Dividend income | $ 0 |
Shares at the ending period | shares | 464,041 |
Fair value at the ending period | $ 7,367,969 |
NexPoint Real Estate Finance, Inc. [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Shares at the beginning period | shares | 481,670 |
Fair value at the beginning period | $ 7,653,730 |
Transfers in (out) (at cost) | (7,368,085) |
Purchases | 0 |
Sales | 0 |
Realized gains (losses) | 0 |
Change in unrealized appreciation (depreciation) | 1,777,618 |
Affiliated Dividend income | $ 90,194 |
Shares at the ending period | shares | 131,670 |
Fair value at the ending period | $ 2,063,263 |
SFR WLIF III, LLC [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Shares at the beginning period | shares | 451,112 |
Fair value at the beginning period | $ 424,468 |
Transfers in (out) (at cost) | 0 |
Purchases | 0 |
Sales | 0 |
Realized gains (losses) | 0 |
Change in unrealized appreciation (depreciation) | (6,287) |
Affiliated Dividend income | $ 11,430 |
Shares at the ending period | shares | 451,112 |
Fair value at the ending period | $ 418,181 |
Financial Highlights - Summary
Financial Highlights - Summary of Share Outstanding (Detail) | 3 Months Ended | |||
Mar. 31, 2023 USD ($) shares $ / shares | Mar. 31, 2022 USD ($) shares $ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | |
Investment Company, Financial Highlights [Line Items] | ||||
Net asset value, beginning of period | $ 5.55 | $ 6.32 | ||
Investment Company, Investment Income (Loss) from Operations, Per Share [Abstract] | ||||
Net investment income(1) | 0.04 | 0.05 | ||
Net realized and unrealized gain (loss) | (0.14) | 0.07 | ||
Total from investment operations | $ (0.1) | $ 0.12 | ||
Less distribution declared to common shareholders: | ||||
From net investment income (per share) | shares | (0.09) | (0.09) | ||
Total distributions declared to common shareholders | $ (0.09) | $ (0.09) | ||
Investment Company, Capital Share Transactions [Abstract] | ||||
Issuance of common stock(2) (per share) | shares | 0 | 0 | ||
Shares tendered(1) (per share) | shares | 0 | 0 | ||
Net asset value, end of period | $ 5.36 | $ 6.35 | ||
Net asset value total return(3)(4) | (1.80%) | 1.83% | ||
Investment Company, Financial Ratios [Abstract] | ||||
Net assets, end of period (in 000's) | $ | $ 51,159,305 | $ 62,947,277 | $ 53,694,167 | $ 62,938,908 |
Shares outstanding, end of period | shares | 9,548,899 | 9,918,671 | 9,677,593 | |
Ratios based on weighted average net assets of common shares: | ||||
Gross operating expenses(5) | 4.05% | 3.72% | ||
Fees and expenses waived or reimbursed(5) | (0.62%) | (0.39%) | ||
Net operating expenses(5) | 3.43% | 3.33% | ||
Net investment income (loss) before fees waived or reimbursed(5) | 2.14% | 2.73% | ||
Net investment income (loss) after fees waived or reimbursed(5) | 2.76% | 3.12% | ||
Portfolio turnover rate(4) | 1% | 26% | ||
Asset coverage ratio | 0% | 0% | ||
Weighted average commission rate paid(6) | 0% | 0% |