| 2. SIGNIFICANT ACCOUNTING POLICIES | Basis of Accounting The accompanying financial statements of
the Company and related financial information have been prepared in accordance with generally accepted accounting principles in
the United States of America ("GAAP") and pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10
of Regulation S-X. The Company has determined it meets the definition of an investment company and follows the accounting and reporting
guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic
946—Financial Services—Investment Companies ("ASC Topic 946"). In the opinion of management, the financial
statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of
and for the periods presented. Use of Estimates Financial statements prepared on a GAAP
basis require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements
and accompanying notes. Actual results could differ from those estimates. Such estimates and assumptions could change
in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Investment
valuation represents a significant estimate within these financial statements. Reclassification of Prior Year Presentation Certain prior year
amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the
reported results of operations. In the first quarter of fiscal 2016, the Company concluded it was appropriate to capitalize loan
origination fees charged on promissory notes as a reduction to the initial cost of the investment and accrete such amounts over
the estimated life of the investment as interest income. Previously, such fees were deferred and amortized over the estimated life
of the investment. Accordingly, the Company had revised the classification to report these amounts as interest income on investments.
Corresponding reclassifications have also been made to the statements of cash flows for the first nine months of fiscal year 2015.
This change in classification does not materially affect previously reported cash flows from operations or from financing activities
in the statements of Cash Flows, and had no effect on the previously reported Statements of Operations for any period. Cash and Cash Equivalents The Company deposits its cash in financial
institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits; however,
management does not believe it is exposed to any significant credit risk. Fair Value of Investments The Company's fair value accounting policies
adhere to the provisions of FASB ASC Topic 820, Fair Value Measurements and Disclosures ("Topic ASC 820"). Topic
ASC 820 establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs
and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable
inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources
independent of the Company. Unobservable inputs reflect the Company's assumption about the inputs market participants would
use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value
hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations
based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices
that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree
of judgment. Level 2 - Valuations
based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based
on inputs that are unobservable and significant to the overall fair value measurement. To the extent that the valuation is based
on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.
Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future
circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation,
those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities
existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for securities
categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair
value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value
measurement falls in its entirety is determined by the lowest level input that is significant to the fair value measurement. Fair value is a market-based measure considered
from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions
are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing
the asset or liability at the measurement date. See further description of fair value methodology in Note 5. Deferred Offering Costs Offering costs are expenses such as legal
fees pertaining to the Company's shares offered for sale. The Company has accounted for offering costs in the current period as
a deferred charge, Deferred Offering Costs on the Statements of Assets, Liabilities and Net Assets. The deferred offering costs
are being amortized to expense over 12 months on a straight-line basis beginning with the period after the Company's registration
under the Securities and Exchange Act of 1934 (the "Exchange Act") was effective (November 1, 2014). As of October 31,
2015, the deferred offering costs incurred by the Company had been fully amortized. Revenue Recognition Investments and related investment
income: Interest income is accrued based upon the outstanding principal amount and contractual interest terms of debt
investments. For the three and nine months ended July 31, 2016, the Company earned interest income of $332,337 and $979,327
(including $13,251 and $45,182 interest on investments from affiliate company), respectively. During the nine months ended
July 31, 2016, the Company wrote-off $6,243, $7,180, and $10,333 in interest income and interest receivable related to its
debt securities with Aequitas Commercial Finance, LLC, Aequitas Peer-to-Peer Funding, LLC, and Care Payment Holdings, LLC,
respectively, as the amounts were determined to be uncollectible. For the three and nine months ended July 31, 2015, the
Company earned interest income of $242,661 and $705,325 (including no interest on investments from affiliate company). As of
July 31, 2016 and October 31, 2015, the Company had interest receivable of $777,030 and $245,706, respectively. Fee income such as loan origination,
closing, commitment, structuring and other upfront fees is capitalized, and the Company accretes or amortizes such amounts
over the life of the loan as interest income. For the three and nine months ended July 31, 2016, interest income included
$12,539 and $30,932, respectively, of accretion of loan origination fees. There was no accretion of loan origination fees for
the three and nine months ended July 31, 2015. For the three and nine months ended July 31, 2016, the Company received loan
origination fees of $27,354, and $30,171 respectively. For the three and nine months ended July 31, 2015, the
Company received loan origination fees of $43,250 and $79,250, respectively. Investment transactions are accounted for
on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the
disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports
current period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized
appreciation (depreciation) on investments in the Statements of Operations. For investments with contractual payment-in-kind
("PIK") interest, which represents contractual interest accrued and added to the principal balance that generally becomes
due at maturity, the Company will not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is
not collectible. As of July 31, 2016, the Company held three investments, Ajubeo, Inc., Northstar Portfolio, LLC and 5500 South
Quebec Holdings, LLC with contractual PIK interest. As of July 31, 2016 the balance of accrued PIK interest related to these investments
was $50,778, $192,329, and $294,207, respectively. For the year ended October 31, 2015, the Company held three investments, Ajubeo,
Inc. Northstar Portfolio, LLC and 5500 South Quebec Holdings, LLC with contractual PIK interest. As of October 31, 2015, the balance
of PIK interest related to these investments was $26,583, $23,750, and $56,667, respectively. All PIK interest amounts are recorded
within the interest receivable balances as of July 31, 2016 and Octover 31, 2015. The Company notes that investments held with
PIK interest do not have cash interest rates. Dividend income from investments in
other investment companies is recorded as dividend income on an accrual basis to the extent that such amounts are payable by
the investment company and are expected to be collected. Each distribution received from limited liability company
("LLC") and limited partnership ("LP") investments is evaluated to determine if the distribution should be
recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity
investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the
LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in
the cost basis of the investment. For the three and nine months ended July 31, 2016, the Company recorded dividend income of
$5,091 and $18,446. For the three and nine months ended July 31, 2015, the Company recorded dividend income of $8,888 and
$22,383, respectively. Non-accrual loans: A loan may
be left on accrual status during the period the Company is pursuing repayment of the loan. Management reviews all loans
that become 90 days or more past due on principal and interest, or when there is reasonable doubt that principal or interest
will be collected, for possible placement on non-accrual status. When a loan is placed on non-accrual status, unpaid
interest credited to income is reversed. Additionally, any original issue discount and market discount are no longer accreted
to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans
may be recognized as income or applied to principal depending upon management's judgment. Non-accrual loans are restored
to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain
current. There were three non-accrual loans held as of July 31, 2016 (Aequitas Commercial Finance, LLC, Aequitas Peer-to-Peer
Funding, LLC, and Care Payment Holdings, LLC) with a fair value of $1,339,730 and cost of $1,626,500. There werenÂ’t
any non-accrual loans held as of October 31, 2015. During the three months ended July 31, 2016, the Company reduced fair
value by $286,770 for these non-accrual loans. Partial loan sales: The Company follows
the guidance in FASB ASC Topic 860 when accounting for loan participations and other partial loan sales. Such guidance requires
a participation or other partial loan sale to meet the definition of a "participating interest", as defined in the guidance,
in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating
interest remain on the Company's Statements of Assets, Liabilities and Net Assets and the proceeds are recorded as a secured borrowing
until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are
carried at fair value. For the three months ended July 31, 2016 and July 31, 2015, there were no partial loan sales. For the nine
months ended July 31, 2016, there were partial loan sales which met the definition of a participating interest to a related party
of $40,000 of the Company's interest in its Promissory Note in eCOS, LLC. For the nine months ended July 31, 2015 there were
partial loan sales which met the definition of a participating interest to an unrelated third party of $800,000 of the Company's
interest in its $3,257,500 Promissory Note in Camel Parkwood, LLC. There was no gain or loss resulting from this partial loan sale. Income Taxes The Company has elected to be treated as
a BDC under the 1940 Act. The Company elected to be treated as a RIC under the Internal Revenue Code beginning with the tax
year ended October 31, 2015. Such election was made upon the filing of the Company's first federal tax return for RIC purposes.
In order to continue to qualify as a RIC, among other things, the Company must meet certain source of income and asset diversification
requirements and timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code,
for each tax year. The Company has made, and intends to continue to make, the requisite distributions to its stockholders, which
generally relieves the Company from U.S. federal income taxes with respect to all income distributed to its stockholders. So long
as the Company maintains its status as a RIC, it will generally not pay corporate-level U.S. federal income or excise taxes on
any ordinary income or capital gains that it distributes at least annually to its stockholders as distributions of income. As a
result, any tax liability related to income earned and distributed by the Company represents obligations of the Company's stockholders
and will not be reflected in the financial statements of the Company. As a RIC, the Company is subject to a 4%
nondeductible federal excise tax on certain undistributed income unless the Company distributes in a timely manner an amount at
least equal to the sum of (i) 98.0% of ordinary income for each calendar year, (ii) 98.2% of capital gain net income for the one-year
period ending October 31 in that calendar year, and (iii) any income realized, but not distributed, in the preceding year.
The Company will not be subject to excise taxes on amounts on which the Company is required to pay corporate income tax (such as
retained net capital gains). The Company currently intends to make sufficient distributions each taxable year to satisfy the Excise
Tax Avoidance Requirement. For the three and nine months ended July 31, 2016 there was no amount recorded for U.S. federal excise
tax. The Company accounts for income taxes in
conformity with ASC Topic 740 — Income Taxes ("ASC Topic 740"). ASC Topic 740 provides guidelines for how uncertain
tax positions should be recognized, measured, presented and disclosed in financial statements. ASC Topic 740 requires the evaluation
of tax positions taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not"
to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax expense in the current year. It is the Company's policy to recognize accrued interest and penalties
related to uncertain tax benefits in income tax expense. There were no material uncertain income tax positions through July 31,
2016. All tax years since inception remain subject to examination by U.S. federal and most state tax authorities. Distributions Distributions to common stockholders are
recorded on the record date. The amount to be paid out as a distribution is determined by the Board each quarter and is generally
based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually, although
the Company may decide to retain such capital gains for investment. During the nine months ended July 31, 2016, there were total
distributions of $1,309,836. During the nine months ended July 31, 2015, there were total distributions of $629,849. Recently adopted accounting pronouncements In April 2015, the Financial Accounting
Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, Interest — Imputation of
interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related
to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability,
consistent with debt discounts. This guidance is effective for annual and interim periods beginning after December 15, 2015. The
Company notes that the adoption of this accounting standard did not have a material impact on its financial statements. In May 2015, FASB issued ASU 2015-07 "Fair
Value Measurement (Topic 820) – Disclosures for Investments in Certain Entities that Calculate Net Asset Value ("NAV")
per Share (or Its Equivalent)." This new guidance no longer requires investments for which NAV is determined based on practical
expedient reliance to be reported utilizing the fair value hierarchy. This guidance is effective for annual and interim periods
beginning after December 15, 2015, however, early adoption is permitted. The Company elected to early adopt ASU 2015-07 as of October
31, 2015. The adoption did not have a material impact on the Company's financial statements, other than enhancing the disclosures. |
