Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-40564 | |
Entity Registrant Name | SILVER SPIKE INVESTMENT CORP. | |
Entity Central Index Key | 0001843162 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 86-2872887 | |
Entity Address, Address Line One | 600 Madison Avenue, Suite 1800 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 905-4923 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | SSIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,214,672 |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Investments at fair value: | ||
Non-control/non-affiliate investments at fair value (amortized cost of $54,910,290 and $50,527,898, respectively) | $ 55,623,299 | $ 50,254,550 |
Cash and cash equivalents | 32,544,027 | 35,125,320 |
Interest receivable | 1,568,026 | 1,559,081 |
Prepaid expenses | 254,651 | 32,323 |
Total assets | 89,990,003 | 86,971,274 |
LIABILITIES | ||
Management fee payable | 409,384 | 170,965 |
Income-based incentive fee payable | 203,821 | 0 |
Capital gains incentive fee payable | 142,602 | 0 |
Legal fees payable | 99,988 | 42,215 |
Administrator fees payable | 82,936 | 57,306 |
Valuation fees payables | 72,185 | 0 |
Audit fees payable | 47,883 | 50,000 |
Professional fees payable | 46,936 | 28,744 |
Director's fee payable | 35,944 | 32,049 |
Excise tax payable | 0 | 80,566 |
Due to affiliate | 0 | 37 |
Other payables | 15,515 | 33,663 |
Total liabilities | 1,157,194 | 495,545 |
Commitments and contingencies (Note 6) | ||
NET ASSETS | ||
Common Stock, $0.01 par value, 100,000,000 shares authorized, 6,214,672 and 6,214,672 shares issued and outstanding, respectively | 62,147 | 62,147 |
Additional paid-in-capital | 85,038,887 | 84,917,788 |
Distributable earnings/(Accumulated losses) | 3,731,775 | 1,495,794 |
Total net assets | $ 88,832,809 | $ 86,475,729 |
NET ASSET VALUE PER SHARE (in dollars per share) | $ 14.29 | $ 13.91 |
Investment, Unaffiliated Issuer [Member] | ||
Investments at fair value: | ||
Non-control/non-affiliate investments at fair value (amortized cost of $54,910,290 and $50,527,898, respectively) | $ 55,623,299 | $ 50,254,550 |
Statements of Assets and Liab_2
Statements of Assets and Liabilities (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
ASSETS | ||||
Amortized cost | $ 54,910,290 | $ 50,527,898 | $ 50,527,898 | |
NET ASSETS | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Common stock, shares issued (in shares) | 6,214,672 | 6,214,672 | ||
Common stock, shares outstanding (in shares) | 6,214,672 | 6,214,672 | 6,214,672 | [1] |
Investment, Unaffiliated Issuer [Member] | ||||
ASSETS | ||||
Amortized cost | $ 54,910,290 | $ 50,527,898 | ||
[1]The Company was formed on January 25, 2021 and the effective date of the registration statement was February 3, 2022. |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Non-control/non-affiliate investment income | ||
Fee income | $ 0 | $ 0 |
EXPENSES | ||
Management fee | 238,419 | 0 |
Income-based incentive fee | 203,821 | 0 |
Capital gains incentive fee | 142,602 | 0 |
Legal expenses | 98,760 | 34,069 |
Audit expense | 97,883 | 10,000 |
Administrator fees | 77,844 | 47,151 |
Valuation fees | 73,065 | 0 |
Insurance expense | 69,082 | 46,488 |
Director expenses | 35,944 | 0 |
Professional fees | 18,192 | 34,920 |
Custodian fees | 12,000 | 12,000 |
Organizational expenses | 0 | 34,168 |
Other expenses | 19,504 | 6,808 |
Total expenses | 1,087,116 | 225,604 |
NET INVESTMENT INCOME (LOSS) | 1,370,723 | (215,531) |
NET REALIZED GAIN (LOSS) FROM INVESTMENTS | ||
Net realized gain (loss) from investments | 0 | 0 |
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | ||
Net change in unrealized appreciation/(depreciation) on investments | 986,357 | 0 |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ 2,357,080 | $ (215,531) |
NET INVESTMENT INCOME (LOSS) PER SHARE - BASIC (in dollars per share) | $ 0.22 | $ (0.06) |
NET INVESTMENT INCOME (LOSS) PER SHARE - DILUTED (in dollars per share) | 0.22 | (0.06) |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC (in dollars per share) | 0.38 | (0.06) |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - DILUTED (in dollars per share) | $ 0.38 | $ (0.06) |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares) | 6,214,672 | 3,557,529 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares) | 6,214,672 | 3,557,529 |
Investment, Unaffiliated Issuer [Member] | ||
Non-control/non-affiliate investment income | ||
Interest income | $ 2,457,839 | $ 10,073 |
Fee income | 0 | 0 |
Total investment income | 2,457,839 | 10,073 |
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | ||
Net change in unrealized appreciation/(depreciation) on investments | $ 986,357 | $ 0 |
Statements of Changes in Net As
Statements of Changes in Net Assets - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2022 | |
Common Stock [Member] | |||
Investment Company, Net Assets [Roll Forward] | |||
Beginning balance | $ 62,147 | $ 0 | |
Beginning balance (in shares) | 6,214,672 | 0 | |
Net increase (decrease) in net assets resulting from operations | |||
Net investment income (loss) | $ 0 | $ 0 | |
Net realized gain (loss) from investments | 0 | 0 | |
Net change in unrealized appreciation (depreciation) from investments | 0 | 0 | |
Total net increase (decrease) in net assets resulting from operations | 0 | 0 | |
Capital transactions | |||
Issuance of common stock | $ 0 | $ 62,147 | |
Issuance of common stock (in shares) | 0 | 6,214,672 | |
Total increase (decrease) in net assets | $ 0 | $ 62,147 | |
Total increase (decrease) in net assets (in shares) | 0 | 6,214,672 | |
Effect of permanent adjustments | $ 0 | $ 0 | |
Ending balance | $ 62,147 | $ 62,147 | $ 62,147 |
Ending balance (in shares) | 6,214,672 | 6,214,672 | 6,214,672 |
Additional Paid-in Capital [Member] | |||
Investment Company, Net Assets [Roll Forward] | |||
Beginning balance | $ 84,917,788 | $ 0 | |
Net increase (decrease) in net assets resulting from operations | |||
Net investment income (loss) | 0 | 0 | |
Net realized gain (loss) from investments | 0 | 0 | |
Net change in unrealized appreciation (depreciation) from investments | 0 | 0 | |
Total net increase (decrease) in net assets resulting from operations | 0 | 0 | |
Capital transactions | |||
Issuance of common stock | 0 | 85,213,023 | |
Total increase (decrease) in net assets | 0 | 85,213,023 | |
Effect of permanent adjustments | 121,099 | (295,235) | |
Ending balance | 85,038,887 | 84,917,788 | $ 84,917,788 |
Distributable Earnings/(Accumulated Loss) [Member] | |||
Investment Company, Net Assets [Roll Forward] | |||
Beginning balance | 1,495,794 | (507,549) | |
Net increase (decrease) in net assets resulting from operations | |||
Net investment income (loss) | 1,370,723 | (215,531) | |
Net realized gain (loss) from investments | 0 | 0 | |
Net change in unrealized appreciation (depreciation) from investments | 986,357 | 0 | |
Total net increase (decrease) in net assets resulting from operations | 2,357,080 | (215,531) | |
Capital transactions | |||
Issuance of common stock | 0 | 0 | |
Total increase (decrease) in net assets | 2,357,080 | (215,531) | |
Effect of permanent adjustments | (121,099) | 295,235 | 295,235 |
Ending balance | 3,731,775 | (427,845) | (427,845) |
Beginning balance | 86,475,729 | (507,549) | |
Net investment income (loss) | 1,370,723 | (215,531) | |
Net realized gain (loss) from investments | 0 | 0 | |
Net change in unrealized appreciation (depreciation) from investments | 986,357 | 0 | |
Total net increase (decrease) in net assets resulting from operations | 2,357,080 | (215,531) | |
Issuance of common stock | 0 | 85,275,170 | |
Total increase (decrease) in net assets | 2,357,080 | 85,059,639 | |
Effect of permanent adjustments | 0 | 0 | |
Ending balance | $ 88,832,809 | $ 84,552,090 | $ 84,552,090 |
Statements of Changes in Net _2
Statements of Changes in Net Assets (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statements of Changes in Net Assets [Abstract] | ||
Offering costs | $ 2,000,000 | $ 1,609,184 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net increase (decrease) in net assets resulting from operations | $ 2,357,080 | $ (215,531) |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||
Net change in unrealized (appreciation) depreciation from investments | (986,357) | 0 |
Net (accretion of discounts) and amortization of premiums | (140,819) | 0 |
Purchase of investments | (4,230,000) | 0 |
PIK interest capitalized | (11,573) | 0 |
(Increase)/Decrease in operating assets: | ||
Prepaid expenses | (222,328) | (256,512) |
Interest receivable | (8,945) | (9,215) |
Deferred offering costs | 0 | 1,395,059 |
Increase/(Decrease) in operating liabilities: | ||
Management fee payable | 238,419 | 0 |
Income-based incentive fee payable | 203,821 | 0 |
Capital gains incentive fee payable | 142,602 | 0 |
Legal fees payable | 57,773 | 33,983 |
Administrator fees payable | 25,630 | 47,151 |
Valuation fees payables | 72,185 | 0 |
Professional fees payable | 18,192 | 0 |
Director's fee payable | 3,895 | 24,370 |
Excise tax payable | (80,566) | 0 |
Due to affiliate | (37) | (383,991) |
Offering cost payable | 0 | (759,675) |
Audit fees payable | (2,117) | 10,000 |
Organizational costs payable | 0 | (396,108) |
Other payables | (18,148) | 1,359 |
Net cash provided by (used in) operating activities | (2,581,293) | (509,110) |
Cash flows from financing activities | ||
Issuance of common stock, net of offering cost | 0 | 85,269,770 |
Net cash provided by (used in) financing activities | 0 | 85,269,770 |
Net increase (decrease) in cash & cash equivalents | (2,581,293) | 84,760,660 |
Cash & cash equivalents, beginning of period | 35,125,320 | 5,400 |
Cash & cash equivalents, end of period | $ 32,544,027 | $ 84,766,060 |
Schedule of Investments
Schedule of Investments - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | ||||
Investments [Abstract] | |||||
Amortized cost | $ 54,910,290 | $ 50,527,898 | |||
Fair value | $ 55,623,299 | $ 50,254,550 | |||
Investment, Identifier [Axis]: AYR Wellness INC. Senior Secured Notes Due12102024 Fixed Interest Rate 12.5% | |||||
Investments [Abstract] | |||||
Investment, Issuer Name [Extensible Enumeration] | [1] | ssic:AYRWellnessIncMember | ssic:AYRWellnessIncMember | ||
Investment, Type [Extensible Enumeration] | ssic:SeniorSecuredNoteMember | [2] | ssic:SeniorSecuredNoteMember | [3] | |
Investment, Significant Unobservable Input [true false] | true | true | |||
Investment date | [4] | Oct. 11, 2022 | Oct. 11, 2022 | ||
Maturity date | Dec. 10, 2024 | Dec. 10, 2024 | |||
Debt Securities, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | [5] | Level 3 [Member] | Level 3 [Member] | ||
Investment, Issuer Geographic Region [Extensible Enumeration] | [6] | Southeast [Member] | Southeast [Member] | ||
Principal amount | [7] | $ 2,000,000 | $ 2,000,000 | ||
Amortized cost | 1,798,000 | 1,773,000 | |||
Fair value | [8] | $ 1,805,000 | $ 1,773,000 | ||
Percentage of net assets | 2.03% | 2.05% | |||
Investment, Identifier [Axis]: Curaleaf Holdings, INC. Senior Secured Notes Due12152026 Fixed Interest Rate 8% | |||||
Investments [Abstract] | |||||
Investment, Issuer Name [Extensible Enumeration] | [1] | ssic:CuraleafHoldingsIncMember | ssic:CuraleafHoldingsIncMember | ||
Investment, Type [Extensible Enumeration] | ssic:SeniorSecuredNoteMember | [2] | ssic:SeniorSecuredNoteMember | [3] | |
Investment, Significant Unobservable Input [true false] | true | true | |||
Investment date | [4] | Oct. 11, 2022 | Oct. 11, 2022 | ||
Maturity date | Dec. 15, 2026 | Dec. 15, 2026 | |||
Debt Securities, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | [5] | Level 3 [Member] | Level 3 [Member] | ||
Investment, Issuer Geographic Region [Extensible Enumeration] | [6] | Northeast [Member] | Northeast [Member] | ||
Principal amount | [7] | $ 4,500,000 | $ 4,500,000 | ||
Amortized cost | 3,887,000 | 3,854,000 | |||
Fair value | [8] | $ 4,044,000 | $ 3,854,000 | ||
Percentage of net assets | 4.55% | 4.46% | |||
Investment, Identifier [Axis]: Investments And Cash Equivalents | |||||
Investments [Abstract] | |||||
Amortized cost | $ 87,454,000 | $ 85,653,000 | |||
Fair value | [8] | $ 88,167,000 | $ 85,380,000 | ||
Percentage of net assets | 99.25% | 98.74% | |||
Investment, Identifier [Axis]: MariMed Inc. Senior Secured First Lien Term Loan Due 01/24/2023 Variable Interest Rate Prime Spread 5.75% Prime Floor 6.25% PIK 1.40% | |||||
Investments [Abstract] | |||||
Investment, Issuer Name [Extensible Enumeration] | [1] | ssic:MariMedIncMember | |||
Investment, Type [Extensible Enumeration] | [2] | Senior Secured First Lien Term Loan [Member] | |||
Investment, Significant Unobservable Input [true false] | true | ||||
Investment date | [4] | Jan. 24, 2023 | |||
Maturity date | Jan. 24, 2026 | ||||
Debt Securities, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | [5] | Level 3 [Member] | |||
Investment, Issuer Geographic Region [Extensible Enumeration] | [6] | Northeast [Member] | |||
Principal amount | [7] | $ 4,512,000 | |||
Amortized cost | 4,244,000 | ||||
Fair value | [8] | $ 4,244,000 | |||
Percentage of net assets | 4.78% | ||||
Investment, Identifier [Axis]: PharmaCann, Inc. Senior Secured Loan Due 6/30/2025 Fixed interest rate 12% | |||||
Investments [Abstract] | |||||
Investment, Issuer Name [Extensible Enumeration] | [1] | ssic:PharmaCannIncMember | ssic:PharmaCannIncMember | ||
Investment, Type [Extensible Enumeration] | ssic:SeniorSecuredNoteMember | [2] | ssic:SeniorSecuredNoteMember | [3] | |
Investment, Significant Unobservable Input [true false] | true | true | |||
Investment date | [4] | Jun. 30, 2022 | Jun. 30, 2022 | ||
Maturity date | Jun. 30, 2025 | Jun. 30, 2025 | |||
Debt Securities, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | [5] | Level 3 [Member] | Level 3 [Member] | ||
Investment, Issuer Geographic Region [Extensible Enumeration] | [6] | Midwest [Member] | Midwest [Member] | ||
Principal amount | [7] | $ 4,250,000 | $ 4,250,000 | ||
Amortized cost | 4,050,000 | 4,029,000 | |||
Fair value | [8] | $ 4,072,000 | $ 3,967,000 | ||
Percentage of net assets | 4.58% | 4.59% | |||
Investment, Identifier [Axis]: Shryne Group, Inc. Senior Secured First Lien Term Loan Due 5/26/2026 Variable Interest Rate Prime Spread 8.5% Prime Floor 4.0% | |||||
Investments [Abstract] | |||||
Investment, Issuer Name [Extensible Enumeration] | [1] | ssic:ShryneGroupIncMember | ssic:ShryneGroupIncMember | ||
Investment, Type [Extensible Enumeration] | Senior Secured First Lien Term Loan [Member] | [2] | Senior Secured First Lien Term Loan [Member] | [3] | |
Investment, Significant Unobservable Input [true false] | true | true | |||
Investment date | [4] | May 26, 2022 | May 26, 2022 | ||
Maturity date | May 26, 2026 | May 26, 2026 | |||
Debt Securities, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | [5] | Level 3 [Member] | Level 3 [Member] | ||
Investment, Issuer Geographic Region [Extensible Enumeration] | [6] | West [Member] | West [Member] | ||
Principal amount | [7] | $ 21,000,000 | $ 21,000,000 | ||
Amortized cost | 20,509,000 | 20,480,000 | |||
Fair value | [8] | $ 20,571,000 | $ 20,269,000 | ||
Percentage of net assets | 23.16% | 23.44% | |||
Investment, Identifier [Axis]: State Street Institutional U.S. Government Money Market Fund | |||||
Investments [Abstract] | |||||
Debt Securities, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | [9] | Level 1 [Member] | Level 1 [Member] | ||
Amortized cost | $ 32,544,000 | $ 35,125,000 | |||
Fair value | [8] | $ 32,544,000 | $ 35,125,000 | ||
Percentage of net assets | 36.64% | [10] | 40.62% | [9] | |
Investment, Identifier [Axis]: Verano Holdings Corp Senior Secured First Lien Term Loan Due10302026 Variable Interest Rate Prime Spread65 Prime Floor625 | |||||
Investments [Abstract] | |||||
Investment, Issuer Name [Extensible Enumeration] | [1] | ssic:VeranoHoldingsCorpMember | ssic:VeranoHoldingsCorpMember | ||
Investment, Type [Extensible Enumeration] | Senior Secured First Lien Term Loan [Member] | [2] | Senior Secured First Lien Term Loan [Member] | [3] | |
Investment, Significant Unobservable Input [true false] | true | true | |||
Investment date | [4] | Oct. 27, 2022 | Oct. 27, 2022 | ||
Maturity date | Oct. 30, 2026 | Oct. 30, 2026 | |||
Debt Securities, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | [5] | Level 3 [Member] | Level 3 [Member] | ||
Investment, Issuer Geographic Region [Extensible Enumeration] | [6] | Midwest [Member] | Midwest [Member] | ||
Principal amount | [7] | $ 21,000,000 | $ 21,000,000 | ||
Amortized cost | 20,422,000 | 20,392,000 | |||
Fair value | [8] | $ 20,887,000 | $ 20,392,000 | ||
Percentage of net assets | 23.51% | 23.58% | |||
Investment, Identifier [Axis]: Wholesale Trade Debt Securities | |||||
Investments [Abstract] | |||||
Principal amount | [7] | $ 57,262,000 | $ 52,750,000 | ||
Amortized cost | 54,910,000 | 50,528,000 | |||
Fair value | [8] | $ 55,623,000 | $ 50,255,000 | ||
Percentage of net assets | 62.61% | 58.12% | |||
[1]All portfolio companies are located in the United States.[2]No debt investment is non-income producing as of March 31, 2023.[3]No debt investment is non-income producing as of December 31, 2022.[4]Investment date represents the date of initial investment, at which date interest began accruing.[5]See Note 2 – Significant Accounting Policies and Note 4 — Fair Value of Financial Instruments in the accompanying notes to the financial statements.[6]Geographic regions are determined by the respective portfolio company’s headquarters’ location.[7]Principal is net of repayments, if any, as per the terms of the debt instrument’s contract.[8]All investments were valued at fair value. See Note 4 — Fair Value of Financial Instruments in the accompanying notes to the financial statements.[9]The annualized seven-day yield as of December 31, 2022 is 4.12%.[10]The annualized seven-day yield as of March 31, 2023 is 4.70%. |
Schedule of Investments (Parent
Schedule of Investments (Parenthetical) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | ||||
Investment, Identifier [Axis]: AYR Wellness INC. Senior Secured Notes Due12102024 Fixed Interest Rate 12.5% | |||||
Investments [Abstract] | |||||
Percentage of net assets | 2.03% | 2.05% | |||
Investment, Identifier [Axis]: AYR Wellness Senior Secured Notes Due12/10/2024 Fixed Interest Rate 12.5% | |||||
Investments [Abstract] | |||||
Fixed interest rate | [1] | 12.50% | 12.50% | ||
Investment, Identifier [Axis]: Curaleaf Holdings, INC. Senior Secured Notes Due12152026 Fixed Interest Rate 8% | |||||
Investments [Abstract] | |||||
Percentage of net assets | 4.55% | 4.46% | |||
Investment, Identifier [Axis]: Curaleaf Senior Secured Notes Due12/15/2026 Fixed Interest Rate 8% | |||||
Investments [Abstract] | |||||
Fixed interest rate | [1] | 8% | 8% | ||
Investment, Identifier [Axis]: Investments And Cash Equivalents | |||||
Investments [Abstract] | |||||
Percentage of net assets | 99.25% | 98.74% | |||
Investment, Identifier [Axis]: MariMed Inc. Senior Secured First Lien Term Loan Due 01/24/2023 Variable Interest Rate Prime Spread 5.75% Prime Floor 6.25% PIK 1.40% | |||||
Investments [Abstract] | |||||
Percentage of net assets | 4.78% | ||||
Investment, Identifier [Axis]: MariMed Inx. Senior Secured First Lien Term Loan Due 1/24/2026 Variable Interest Rate Prime Spread 5.75% Prime Floor 6.25% Paid-in-Kind 1.40% | |||||
Investments [Abstract] | |||||
Basis spread on variable rate | [1] | 5.75% | |||
Floor rate | [1] | 6.25% | |||
PIK Interest Rate | 1.40% | ||||
Investment, Identifier [Axis]: PharmaCann, Inc. Senior Secured Loan Due 6/30/2025 Fixed interest rate 12% | |||||
Investments [Abstract] | |||||
Fixed interest rate | [1] | 12% | 12% | ||
Percentage of net assets | 4.58% | 4.59% | |||
Investment, Identifier [Axis]: Shryne Group, Inc. Senior Secured First Lien Term Loan Due 5/26/2026 Variable Interest Rate Prime Spread 8.5% Prime Floor 4.0% | |||||
Investments [Abstract] | |||||
Basis spread on variable rate | [1] | 8.50% | 8.50% | ||
Floor rate | [1] | 4% | 4% | ||
Percentage of net assets | 23.16% | 23.44% | |||
Investment, Identifier [Axis]: State Street Institutional U.S. Government Money Market Fund | |||||
Investments [Abstract] | |||||
Percentage of net assets | 36.64% | [2] | 40.62% | [3] | |
Percentage of annualized seven-day yield | 4.70% | 4.12% | |||
Annualized period of yield | 7 days | 7 days | |||
Investment, Identifier [Axis]: Verano Holdings Corp Senior Secured First Lien Term Loan Due10302026 Variable Interest Rate Prime Spread65 Prime Floor625 | |||||
Investments [Abstract] | |||||
Basis spread on variable rate | [1] | 6.50% | 6.50% | ||
Floor rate | [1] | 6.25% | 6.25% | ||
Percentage of net assets | 23.51% | 23.58% | |||
Investment, Identifier [Axis]: Wholesale Trade Debt Securities | |||||
Investments [Abstract] | |||||
Percentage of net assets | 62.61% | 58.12% | |||
Prime rate | 8% | 7.50% | |||
[1]Interest rate is the fixed or variable rate of the debt investments.[2]The annualized seven-day yield as of March 31, 2023 is 4.70%.[3]The annualized seven-day yield as of December 31, 2022 is 4.12%. |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2023 | |
ORGANIZATION [Abstract] | |
ORGANIZATION | NOTE 1 — ORGANIZATION Silver Spike Investment Corp. (an emerging growth company) (the “Company”, “we” or “our”) On February 4, 2022, the Company’s common stock began trading on the Nasdaq Global Market under the ticker symbol “SSIC,” and we completed our initial public offering of 6,214,286 shares of our common stock, par value $0.01, inclusive of an over-allotment option that was exercised in full on March 1, 2022 (“IPO”), for approximately $87 million. The Company is managed by Silver Spike Capital, LLC (“SSC” or “Adviser”), a registered investment advisor under the Investment Advisers Act of 1940 with the Securities and Exchange Commission. SSC has engaged SS&C Technologies, Inc. and ALPS Fund Services, Inc. (“SS&C”), as sub-administrator, to perform administrative services necessary for the Company to operate. The Company’s investment objective is to maximize risk-adjusted returns on equity for its shareholders. The Company seeks to drive return on equity by generating current income from debt investments and capital appreciation from equity and equity-related investments. The Company intends to achieve its investment objective by investing primarily in secured debt, unsecured debt, equity warrants and direct equity investments in private leveraged middle-market cannabis companies and other companies in the health and wellness sector. The debt investments are often secured by either a first or second priority lien on the assets of the portfolio company, can include either fixed or floating rate terms and will generally have a term of between two On November 8, 2022, the Board of Directors (“Board”) of the Company approved a change in its fiscal year end from March 31 to December 31. C ertain prior period information has been reclassified to conform to the current period presentation. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), including the requirements under ASC 946, Financial Services—Investment Companies and Articles 6 and 12 of Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the financial statements have been made. The current period’s results of operations are not necessarily indicative of results that may be achieved for the year Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions affecting reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income, expenses, and gains and losses during the reported period Investment Valuation The Company’s investments are recorded at their estimated fair value on the Statement of Assets and Liabilities. Investments for which market quotations are readily available will typically be valued at the bid price of those market quotations. To validate market quotations, we utilize a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Adviser, as the Company’s valuation designee (the “Valuation Designee”), based on inputs that may include valuations, or ranges of valuations, provided by independent third-party valuation firm(s) engaged by the Adviser. Generally, the valuation approach used for debt investments is the income approach. The approach derives a value based on either determining the present value of a projected level of cash flow, including a terminal value, or by the capitalization of a normalized measure of future cash flow. The discounted cash flow (“DCF”) method, one of the methodologies under the income approach, involves estimating future cash flows under various scenarios and discounting them to the measurement date. The discount rate represents a return required by a market participant in order to make an investment in the subject company. Generally, the valuation approach used for debt investments is the income approach. Alternatively, the market approach or asset approach may be used. The market approach is a way of determining a value indication by using one or more methods that compare the portfolio company to similar businesses. Value indicators are applied to relevant financial information of the entity being valued to estimate its fair value. There are two methodologies to consider under the market approach: the guideline company method (“GCM”) and the controlling transaction method (“CTM”). The GCM is based on the premise that the pricing multiples of comparable publicly traded companies can be used as a tool to value privately held companies. The publicly traded companies’ ratios and business enterprise value provide guidance in the valuation process. Considerations of factors such as size, growth, profitability and return on investment are also analyzed and compared to the subject business. The CTM is based on the same premise as the GCM. Guideline transactions include change-of-control transactions involving public or private businesses for companies engaged in similar lines of business or with similar economic characteristics. The valuation considers the price at which the merger or acquisition took place to other factors in order to create a pricing multiple that can be used to determine an estimate of value for the subject company. The asset approach provides an indication of the company’s value by developing a valuation-based balance sheet. This approach requires adjusting the historical assets and liabilities listed on the U.S. GAAP-based balance sheet to market fair values. The excess of assets over liabilities represents the tangible value of the business enterprise. The asset approach does not consider the relevant earnings capacity of a going concern business. Effective September 8, 2022, pursuant to Rule 2a-5 under the 1940 Act, the Board designated the Adviser as the Valuation Designee to perform the fair value determinations for the Company, subject to the oversight of the Board and certain Board reporting and other requirements. As part of the valuation process, the Adviser takes into account relevant factors in determining the fair value of our investments, including: the estimated enterprise value of a portfolio company (i.e., the total fair value of the portfolio company’s debt and equity), the nature and realizable value of any collateral, the portfolio company’s ability to make payments based on its earnings and cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, and overall changes in the interest rate environment and the credit markets. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Adviser considers whether the pricing indicated by the external event corroborates its valuation. The Adviser undertakes a multi-step valuation process, which includes, among other procedures, the following: • With respect to investments for which market quotations are readily available, those investments will typically be valued at the bid price of those market quotations; • With respect to investments for which market quotations are not readily available, the valuation process begins with the Adviser’s valuation committee establishing a preliminary valuation of each investment, which may be based on valuations, or ranges of valuations, provided by independent valuation firm(s); • Preliminary valuations are documented and discussed by the Adviser’s valuation committee and, where appropriate, the independent valuation firm(s); and • The Adviser determines the fair value of each investment. We conduct this valuation process on a quarterly basis. We apply Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurement • Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date; • Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities • Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If we were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected previously. Cash and Cash Equivalents Cash and cash equivalents consists of funds deposited with financial institutions and short-term (maturity of 90 days or less) liquid investments and money market funds. Funds held in money market funds are considered Level 1 in the fair value hierarchy in accordance with ASC 820. Cash held in demand deposit accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit. As of March 31, 2023 and December 31, 2022, cash and cash equivalents consisted of $32.54 million and $35.13 million, respectively, of which $32.54 million and $35.13 million, respectively, was held in the State Street Institutional U.S. Government Money Market Fund. Earnings per share Basic earnings per share is computed by dividing net increase (decrease) in net assets resulting from operations Investment Transactions Investment transactions are recorded on trade date. Realized gains or losses are recognized as the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments written off during the period, net of recoveries. Current-period changes in fair value of investments are reflected as a component of the net change in unrealized appreciation/(depreciation) on investments on the Statements of Operations. The net change in unrealized appreciation/(depreciation) primarily reflects the change in investment fair values as of the last business day of the reporting period, including the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period. Investments traded but not yet settled are reported in payable for investments purchased and receivable for investments sold on the Statement of Assets and Liabilities. Interest and Dividend Income Interest income is recorded on the accrual basis and includes accretion and amortization of discounts or premiums, respectively. Discounts and premiums to par value on securities purchased are accreted and amortized, respectively, into interest income over the contractual life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion and amortization of discounts and premiums, respectively. Upon prepayment of a loan or debt security, any prepayment premiums and unamortized discounts or premiums are recorded as interest income in the current period. When a debt security becomes 90 days or more past due, or if management otherwise does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the debt security on non-accrual status and cease recognizing interest income on that debt security until all principal and interest due has been paid or the Company believes the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection. As of March 31, 2023 and December 31, 2022, there were no loan investments in the portfolio placed on non-accrual status. We typically receive debt investment origination or closing fees in connection with investments. Such debt investment origination and closing fees are capitalized as unearned income and offset against investment cost basis on our Statements of Assets and Liabilities and accreted into interest income using the effective yield method over the term of the investment. Upon the prepayment of a debt investment, any unaccreted debt investment origination and closing fees are accelerated into interest income. Interest income earned, excluding accretion of discounts and amortization of premiums, was $2,317,020 and $10,073 for the three months ended March 31, 2023 and 2022. As of March 31, 2023 and December 31, 2022, $1,568,026 and $1,559,081, respectively were recorded as interest receivable. Dividend income on preferred equity securities is recorded on the accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Certain investments may have contractual PIK interest or dividends. PIK interest or dividends represents accrued interest or dividends that is added to the principal amount of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity. If PIK interest or dividends are not expected to be realized by the Company, the investment generating PIK interest or dividends will be placed on non-accrual status. When an investment with PIK is placed on non-accrual status, the accrued, uncapitalized interest or dividends are generally reversed through interest or dividend income, respectively. Fee Income All transaction fees earned in connection with our investments are recognized as fee income and are generally non-recurring. Such fees typically include fees for services, including structuring and advisory services, provided to portfolio companies. We recognize income from fees for providing such structuring and advisory services when the services are rendered or the transactions are completed. For the three months ended March 31, 2023 and 2022, no fee income was earned. Income Taxes The Company adopted an initial tax year end of December 31, 2021 and was taxed as a corporation for U.S. federal income tax purposes for the tax period ended December 31, 2021. The Company adopted the tax year end of March 31, 2022 and elected to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code for the tax period January 1, 2022 through March 31, 2022, and intends to maintain such election in the current and future taxable years. To maintain its tax treatment as a RIC, the Company must meet specified source-of-income and asset diversification requirements and timely distribute to its stockholders for each taxable year at least 90% of its investment company taxable income. In order for the Company not to be subject to U.S. federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its net ordinary income for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year and (iii) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years. The Company, at its discretion (subject to the requirement to distribute 90% of its investment company taxable income as described above), may carry forward taxable income in excess of calendar year dividends and pay a 4% nondeductible U.S. federal excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. As of March 31, 2023 and December 31, 2022, $0 and $80,566 of accrued excise taxes remained payable. The Company evaluates 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 in accordance with ASC Topic 740, Income Taxes (“ASC 740”). Tax benefits of positions not deemed to meet the more-likely-than-not threshold, or uncertain tax positions, would be recorded as 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 Based on the analysis of the Company’s tax position, the Company has no uncertain tax positions that met the recognition or measurement criteria as of March 31, 2023 and December 31, 2022. The Company does not anticipate any significant increase or decrease in unrecognized tax benefits for the next twelve months. All of the Company’s tax returns remain subject to examination by U.S. federal and state tax authorities. Organization Expenses and Offering Costs Organizational expenses Costs associated with the organization of the Company are expensed as incurred. These expenses consist primarily of legal fees and other costs of organizing the Company. For the three months ended March 31, 2023 and 2022, the Company incurred organizational expenses of $0 and $34,168, respectively. As unpaid organizational expenses. Offering costs These costs consist primarily of legal fees and other costs incurred in connection with the Company’s share offerings, the preparation of the Company’s registration statement, and registration fees. Costs associated with the offering of common shares of the Company are capitalized as deferred offering and, if any, are included in deferred offering costs on the Statements of Assets and Liabilities. Costs of approximately $1,690,184 New Accounting Standards Management does not believe any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2023 | |
INVESTMENTS [Abstract] | |
INVESTMENTS | NOTE 3 — INVESTMENTS The Company seeks to invest in portfolio companies primarily in the form of loans (secured and unsecured), but may include equity warrants and direct equity investments. The loans typically pay interest with some amortization of principal. As of March 31, 2023, 82.3% of the portfolio (based on amortized cost) pays interest on a floating rate basis with a PRIME floor, and 17.7% of the portfolio (based on amortized cost) pays fixed interest. As of December 31, 2022, 80.9% of the portfolio (based on amortized cost) pays interest on a floating rate basis with a PRIME floor, and 19.1% of the portfolio (based on amortized cost) pays fixed interest. We will generally seek to obtain security interests in the assets of our portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first or second priority liens on the assets of a portfolio company. In some of our portfolio investments, we expect to receive nominally priced equity warrants and/or make direct equity investments in connection with a debt investment. In addition, a portion of our portfolio may be comprised of derivatives, including total return swaps. We expect that our loans will typically have final maturities of three Portfolio Composition The Company’s portfolio investments are in companies conducting business in or supporting the cannabis industries. The following tables summarize the composition of the Company’s portfolio investments by industry at cost and fair value and as a percentage of the total portfolio as of March 31, 2023 and December 31, 2022. March 31, 2023 Amortized Cost Fair Value Industry Amount % Amount % Wholesale Trade $ 54,910,290 100.0 % $ 55,623,299 100.0 % Total $ 54,910,290 100.0 % $ 55,623,299 100.0 % December 31, 2022 Amortized Cost Fair Value Industry Amount % Amount % Wholesale Trade $ 50,527,898 100.0 % $ 50,254,550 100.0 % Total $ 50,527,898 100.0 % $ 50,254,550 100.0 % The geographic composition is determined by the location of headquarters of the portfolio company. The following tables summarize the composition of the Company’s portfolio investments by geographic region of the United States at cost and fair value and as a percentage of the total portfolio as of March 31, 2023 and December 31, 2022. Geographic regions are defined as: West, for the states of WA, OR, ID, MT, WY, CO, AK, HI, UT, NV and CA; Midwest, for the states ND, SD, NE, KS, MO, IA, MN, WI, MI, IL, IN and OH; Northeast, for the states PA, NJ, NY, CT, RI, MA, VT, NH and ME; Southeast, for the states of AR, LA, MS, TN, KY, AL, FL, GA, SC, NC, VA, DE, WV and MD; and Southwest, for the states of AZ, NM, TX and OK. March 31, 2023 Amortized Cost Fair Value Geographic Location Amount % Amount % Midwest $ 24,472,332 44.5 % $ 24,959,628 44.9 % West 20,509,585 37.4 20,571,719 37.0 Northeast 8,130,300 14.8 8,287,292 14.9 Southeast 1,798,073 3.3 1,804,660 3.2 Total $ 54,910,290 100.0 % $ 55,623,299 100.0 % December 31, 2022 Amortized Cost Fair Value Geographic Location Amount % Amount % Midwest $ 24,420,752 48.4 % $ 24,358,686 48.5 % West 20,479,987 40.5 20,268,705 40.3 Northeast 3,854,475 7.6 3,854,475 7.7 Southeast 1,772,684 3.5 1,772,684 3.5 Total $ 50,527,898 100.0 % $ 50,254,550 100.0 % The following tables summarize the composition of the Company’s portfolio investments by investment type at cost and fair value and as a percentage of the total portfolio as of March 31, 2023 and December 31, 2022. March 31, 2023 Amortized Cost Fair Value Investment Amount % Amount % Senior Secured First Lien Term Loan $ 45,176,109 82.3 % $ 45,703,391 82.2 % Senior Secured Notes 9,734,181 17.7 9,919,908 17.8 Total $ 54,910,290 100.0 % $ 55,623,299 100.0 % December 31, 2022 Amortized Cost Fair Value Investment Amount % Amount % Senior Secured First Lien Term Loan $ 40,871,914 80.9 % $ 40,660,633 80.9 % Senior Secured Notes 9,655,984 19.1 9,593,917 19.1 Total $ 50,527,898 100.0 % $ 50,254,550 100.0 % Certain Risk Factors In the ordinary course of business, the Company manages a variety of risks including market risk, credit risk, liquidity risk, interest rate risk, prepayment risk, risks associated with political tensions and risks associated with the COVID-19 pandemic. The Company identifies, measures and monitors risk through various control mechanisms, including trading limits and diversifying exposures and activities across a variety of instruments, markets and counterparties. Market risk is the risk of potential adverse changes to the value of financial instruments because of changes in market conditions, including as a result of changes in the credit quality of a particular issuer, credit spreads, interest rates, and other movements and volatility in security prices or commodities. In particular, the Company may invest in issuers that are experiencing or have experienced financial or business difficulties (including difficulties resulting from the initiation or prospect of significant litigation or bankruptcy proceedings), which involves significant risks. The Company manages its exposure to market risk through the use of risk management strategies and various analytical monitoring techniques. Concentration risk is the risk that the Company’s focus on investments in cannabis companies may subject the Company to greater price volatility and risk of loss as a result of adverse economic, business or other developments affecting cannabis companies than funds investing in a broader range of industries or sectors. At times, the performance of investments in cannabis companies will lag the performance of other industries or sectors or the broader market as a whole. Credit risk is the risk that a decline in the credit quality of an investment could cause the Company to lose money. The Company could lose money if the issuer or guarantor of a portfolio security or a counterparty to a derivative contract fails to make timely payment or otherwise honor its obligations. Fixed income securities rated below investment grade (high-yield bonds) involve greater risks of default or downgrade and are generally more volatile than investment grade securities. Below investment grade securities involve greater risk of price declines than investment grade securities due to actual or perceived changes in an issuer’s creditworthiness. In addition, issuers of below investment grade securities may be more susceptible than other issuers to economic downturns. Such securities are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the security. The Company’s investments may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately. Interest rate risk refers to the change in earnings that may result from changes in the level of interest rates. To the extent that the Company borrows money to make investments, including under any credit facility, net investment income will be affected by the difference between the rate at which the Company borrows funds and the rate at which the Company invests these funds. In periods of rising interest rates, the Company’s cost of borrowing funds would increase, which may reduce net investment income. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on net investment income. Prepayment risk is the risk that a loan in the Company’s portfolio will prepay due to the existence of favorable financing market conditions that allow the portfolio company the ability to replace existing financing with less expensive capital. As market conditions change, prepayment may be possible for each portfolio company. In some cases, the prepayment of a loan may reduce the Company’s achievable yield if the capital returned cannot be invested in transactions with equal or greater expected yields, which could have a material adverse effect on our business, financial condition and results of operations. Political tensions in the United States and around the world (including the current conflict in Ukraine), may contribute to increased market volatility, may have long-term effects on the United States and worldwide financial markets and may cause economic uncertainties or deterioration in the U.S. and worldwide. As jurisdictions around the United States and the world continue to experience surges in cases of COVID-19 and governments consider pausing the lifting of or re-imposing restrictions, there is considerable uncertainty surrounding the full economic impact of the coronavirus pandemic and the long-term effects on the U.S. and global financial markets. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 4 — FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. The Company accounts for its investments at fair value. As of March 31, 2023 and December 31, 2022, the Company’s portfolio investments consisted of investments in secured loans and secured notes. The fair value amounts have been measured as of the reporting date and have not been reevaluated or updated for purposes of these financial statements subsequent to that date. As such, the fair values of these financial instruments subsequent to the reporting date may be different than amounts reported. In accordance with ASC 820, the Company has categorized its investments based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical investments (Level 1) and the lowest priority to unobservable inputs (Level 3). As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, the fair value related to such investments categorized within the Level 3 tables below may include components of the fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). The fair value determination of each portfolio investment categorized as Level 3 required one or more unobservable inputs. The use of significant unobservable inputs creates uncertainty in the measurement of fair value as of the reporting date. The significant unobservable inputs used in the fair value measurement of the Company’s investments may vary and may include debt investments’ yield (i.e. discount rate) and volatility assumptions. The Company’s investments measured at fair value by investment type on a recurring basis as of March 31, 2023 were as follows: Fair Value Measurements at March 31, 2023 Using Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Senior Secured First Lien Term Loan $ - $ - $ 45,703,391 $ 45,703,391 Senior Secured Notes - - 9,919,908 9,919,908 Total $ - $ - $ 55,623,299 $ 55,623,299 The Company’s investments measured at fair value by investment type on a recurring basis as of December 31, 2022 were as follows: Fair Value Measurements at December 31, 2022 Using Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Senior Secured First Lien Term Loan $ - $ - $ 40,660,663 $ 40,660,663 Senior Secured Notes - - 9,593,917 9,593,917 Total $ - $ - $ 50,254,580 $ 50,254,580 The following tables provide a summary of the significant unobservable inputs used to fair value the Level 3 portfolio investments as of March 31, 2023 and December 31, 2022. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Significant Accounting Policies”. Discount Rate ranges are shown as spread over Treasuries for Senior Secured First Lien Term Loans. Investment Type Fair Value as of Valuation Techniques/ Methodologies Unobservable Input Range Weighted Average (1) Senior Secured First Lien Term Loan $ 45,703,391 Discounted Cash Flow Discount Rate 11.6% - 14.8 % 12.9 % Senior Secured Notes 9,919,908 Discounted Cash Flow Discount Rate 9.7% - 15.9 % 11.4 % Total $ 55,623,299 Investment Type Fair Value as of December 31, 2022 Valuation Techniques/ Methodologies Unobservable Input Range Weighted Average (1) Senior Secured First Lien Term Loan $ 40,660,633 Discounted Cash Flow Discount Rate 7.2% - 9.6 % 8.4 % Volatility 20.0% - 20.0 % 20.0 % Senior Secured Notes 9,593,917 Discounted Cash Flow Discount Rate 11.6% - 18.7 % 14.3 % Volatility 7.0% - 20.0 % 12.4 % Total $ 50,254,550 (1) The weighted average is calculated based on the fair value of each investment. Significant increases (decreases) in discount rate in isolation would result in a significantly higher (lower) fair value assessment. Significant increases (decreases) in volatility in isolation would result in a significantly lower (higher) fair value assessment. The following table provides a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the three months ended March 31, 2023: Senior Secured Senior Total Fair Value as of December 31, 2022 $ 40,660,633 $ 9,593,917 $ 50,254,550 Purchases 4,230,000 - 4,230,000 Accretion of discount and fees (amortization of premium), net 62,621 78,198 140,819 PIK interest 11,573 - 11,573 Sales of investments - - - Proceeds from principal repayments - - - Net realized gain (loss) on investments - - - Net change in unrealized appreciation (depreciation) on investments 738,564 247,793 986,357 Balance as of March 31, 2023 $ 45,703,391 $ 9,919,908 $ 55,623,299 Net change in unrealized appreciation/depreciation on Level 3 investments still held as of March 31, 2023 $ 738,564 $ 247,793 $ 986,357 As of March 31, 2022, and for the year then ended, the Company had no investments. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 5 — RELATED PARTY TRANSACTIONS Pursuant to the investment advisory agreement between the Company and SSC (the “Investment Advisory Agreement”), fees payable to SSC are equal to (a) a base management fee of 1.75% of the average value of the Company’s gross assets at the end of the two most recent quarters (i.e., total assets held before deduction of any liabilities), which includes investments acquired with the use of leverage and excludes cash and cash equivalents and (b) an incentive fee based on the Company’s performance. The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20% of the Company’s “Pre-Incentive Fee Net Investment Income” for the quarter, subject to a preferred return, or “hurdle,” of 1.75% per quarter (7% annualized), and a “catch-up” feature. The second part is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement) and equals 20% of the Company’s realized capital gains on a cumulative basis from inception through the end of the fiscal year, if any, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fee (the “Incentive Fee on Capital Gains”). While the Investment Advisory Agreement neither includes nor contemplates the inclusion of unrealized gains in the calculation of the Incentive Fee on Capital Gains, as required by U.S. GAAP, we accrue the Incentive Fee on Capital Gains on unrealized capital appreciation exceeding unrealized depreciation. This accrual reflects the Incentive Fee on Capital Gains that would be payable to SSC if the Company's entire investment portfolio was liquidated at its fair value as of the balance sheet date even though SSC is not entitled to an Incentive Fee on Capital Gains with respect to unrealized capital appreciation unless and until such gains are actually realized. The management fee is payable quarterly in arrears. For the three months ended March 31, 2023 and 2022, the Company incurred management fee expenses of $238,419 and $0, respectively. As of March 31, 2023 and December 31, 2022, $409,384 and $170,965, respectively, remained payable. For the three months ended March 31, 2023 and 2022, the Company incurred income-based incentive fee expenses of $203,821 and $0, respectively. As of March 31, 2023 and December 31, 2022, $203,821 and $0, respectively, remained payable. For the three months ended March 31, 2023 and 2022, the Company incurred capital gains incentive fee expenses of $142,602 and $0, respectively. As of March 31, 2023 and December 31, 2022, $142,602 and $0, respectively, remained payable. Pursuant to the administration agreement between the Company and SSC (the “Administration Agreement”), the Company is to reimburse the administrator, SSC, for the costs and expenses incurred by SSC in performing its obligations, including but not limited to maintaining and keeping all books and records and providing personnel and facilities. This includes costs and expenses incurred by SSC in connection with the delegation of its obligations to SS&C, the Due to affiliate in the accompanying Statements of Assets and Liabilities in the amount of $0 and $37 as of March 31, 2023 and December 31, 2022, respectively, . For , the Company paid $984 and $387,373, respectively, for expenses on SSC’s behalf. SSC was the seed investor of the Company and provided initial funding to the Company by purchasing approximately $63 million of the Company’s common stock in the Company’s initial public offering. SSC provided this “seed capital” to the Company for the purpose of facilitating the launch and initial operation of the Company, as opposed to for long term investment purposes. SSC does not expect to hold the Company’s common stock indefinitely, and may sell the Company’s common stock at a future point in time. In order for SSC’s sales of the shares of the Company not to be deemed to have been made “on the basis of” material nonpublic information, such sales may be made pursuant to a pre-approved trading plan that complies with Rule 10b5-1 under the Exchange Act and that may obligate SSC to make recurring sales of the Company’s common stock on a periodic basis. Sales of substantial amounts of the Company’s common stock, including by SSC or other large stockholders, or the availability of such common stock for sale, could adversely affect the prevailing market prices for the Company’s common stock. If this occurs and continues for a sustained period of time, it could impair the Company’s ability to raise additional capital through the sale of securities, should the Company desire to do so. SSC holds approximately 72% of the Company’s voting stock and has the ability to exercise substantial control over all corporate actions requiring stockholder approval, including the election and removal of directors, certain amendments of the Company’s charter, the Company’s ability to issue its common stock at a price below NAV per share, and the approval of any merger or other extraordinary corporate action. SSC has agreed to absorb $2.07 million, the cost of the sales load (i.e., underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 — COMMITMENTS AND CONTINGENCIES Commitments and contingencies have been reviewed and the Company has identified no |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Mar. 31, 2023 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | NOTE 7 — COMMON STOCK In connection with its formation, the Company authorized 100,000,000 shares of its common stock with a par value of $0.01 per share. As of March 31, 2023 and December 31, 2022, the Company had issued and outstanding shares of 6,214,672 and raised capital of approximately $85 million (net of approximately $2 million of offering costs). Distribution Reinvestment Plan The Company’s distribution reinvestment plan (“DRIP”) provides for the reinvestment of distributions in the form of common stock on behalf of its stockholders, unless a stockholder has elected to receive distributions in cash. As a result, if the Company declares a cash distribution, its stockholders who have not “opted out” of the DRIP by the opt out date will have their cash distribution automatically reinvested into additional shares of the Company’s common stock. The share requirements of the DRIP may be satisfied through the issuance of common shares or through open market purchases of common shares by the DRIP plan administrator. The Company’s DRIP is administered by its transfer agent on behalf of the Company’s record holders and participating brokerage firms. Brokerage firms and other financial intermediaries may decide not to participate in the Company’s DRIP but may provide a similar distribution reinvestment plan for their clients. During , the Company issued no shares of common stock under the DRIP. |
INDEMNIFICATION
INDEMNIFICATION | 3 Months Ended |
Mar. 31, 2023 | |
INDEMNIFICATION [Abstract] | |
INDEMNIFICATION | NOTE 8 — INDEMNIFICATION Under the Company’s organizational documents, the Company’s officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Company. In addition, in the normal course of business the Company enters into contracts that contain a variety of representations which provide general indemnifications. The Company’s maximum exposure under these agreements cannot be known; however, the Company expects any risk of loss to be remote. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 9 — EARNINGS PER SHARE The following table sets forth the computation of the weighted average basic and diluted net increase (decrease) in net assets per share from operations for the three months ended March 31, 2023 and 2022: For the three For the three March 31, 2023 March 31, 2022 Net increase (decrease) in net assets resulting from operations $ 2,357,080 $ (215,531 ) Weighted Average Shares Outstanding - basic and diluted 6,214,672 3,557,529 Net increase (decrease) in net assets resulting from operations per share - basic and diluted $ 0.38 $ (0.06 ) |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 10 — INCOME TAXES The Company adopted a tax year end of March 31, with the period from January 1, 2022 to March 31, 2022 being the first tax period. The Company elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes under Subchapter M of the Code for the tax period January 1, 2022 through March 31, 2022, and intends to maintain such election in future taxable years, including the tax year from April 1, 2022 to March 31, 2023. However, there is no guarantee that the Company will qualify to make such an election for any taxable year. As a RIC, the Company generally will not pay corporate-level income tax if it distributes to stockholders at least 90% of its investment company taxable income (“ICTI”) (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of the current year distribution into the next tax year. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI. The amount to be paid out as a distribution is determined by the Company’s Board of Directors each quarter and is based upon the annual earnings estimated by the management of the Company. To the extent the Company’s earnings fall below the amount of dividend distributions declared, however, a portion of the total amount of the Company’s distributions for the tax year may be deemed a return of capital for tax purposes to the Company’s stockholders. Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary in nature. Permanent differences are reclassified among the capital accounts in the financial statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized in different periods for book and tax purposes. The Company has not recorded a liability for any uncertain tax positions pursuant to the provisions of ASC 740, Income Taxes, as of March 31, 2023 and December 31, 2022. In the normal course of business, the Company is subject to examination by federal and certain state and local tax regulators. As of March 31, 2023, the Company has no capital loss carryforwards for federal income tax purposes, which can be used to offset future capital gains. Any such capital losses are permitted to be carried forward indefinitely. The Company’s taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, the final taxable income earned in each period and carried forward for distribution in the following period may be different than this estimate. For income tax purposes, distributions paid to shareholders are reported as ordinary income, return of capital, long-term capital gains, or a combination thereof. There were no distributions paid for the tax periods ending March 31, 2022 or March 31, 2023. For the tax year ended March 31, 2023, the Company reclassified $121,099 from distributable earnings to additional paid-in-capital on the Statement of Assets and Liabilities arising from permanent book to tax differences primarily related to prior year post-financial statement updates and non-deductible excise tax. As of March 31, 2023, the components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Statements of Assets and Liabilities by temporary book or tax differences primarily arising from the tax treatment of organizational costs. March 31, 2023 Undistributed ordinary income $ 3,418,714 Net unrealized appreciation (depreciation) on investments 713,009 Other temporary differences (399,948 ) Total 3,731,775 The following table sets forth the tax cost basis and the estimated aggregate gross unrealized appreciation and depreciation from investments and cash equivalents for federal income tax purposes as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Tax Cost of Investments and Cash Equivalents $ 87,454,317 $ 85,653,218 Gross unrealized appreciation $ 713,009 $ - Gross unrealized depreciation - (273,348 ) Net unrealized appreciation (depreciation) from investments and cash equivalents $ 713,009 $ (273,348 ) |
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS | 3 Months Ended |
Mar. 31, 2023 | |
FINANCIAL HIGHLIGHTS [Abstract] | |
FINANCIAL HIGHLIGHTS | NOTE 11 — FINANCIAL HIGHLIGHTS The Company was formed on January 25, 2021 and the effective date of our registration statement was February 3, 2022. Prior to February 3, 2022, the Company had no operations, except for matters relating to our formation and organization as a BDC. As a result, there are no significant financial results for comparative purposes. The following presents financial highlights for the three months ended March 31, 2023 and 2022: For the three Period from March 31, 2023 March 31, 2022* Per share data: Net asset value at beginning of period $ 13.91 $ 14.00 Net investment income (loss) (1) 0.22 (0.07 ) Net realized and unrealized gains/(losses) on investments (1) 0.16 - Net increase/(decrease) in net assets resulting from operations 0.38 (0.07 ) Offering costs (2) - (0.27 ) Permanent tax adjustments - (0.05 ) Net asset value at end of period $ 14.29 $ 13.61 Net assets at end of period $ 88,832,809 $ 84,552,090 Shares outstanding at end of period 6,214,672 6,214,672 Weighted average net assets $ 86,501,919 $ 83,301,328 Per share market value at end of period $ 9.19 $ 13.30 Total return based on market value (3) (6.22 )% (5.00 )% Total return based on net asset value (3) 2.73 % (2.79 )% Ratio/Supplemental data: Ratio of expenses to average net assets (4) 1.26 % 0.22 % Ratio of net investment income (loss) to average net assets (4) 1.58 % (0.20 )% Portfolio turnover N/A N/A * The Company was formed on January 25, 2021 and the effective date of the registration statement was February 3, 2022. (1) The per share data was derived by using the weighted average shares outstanding during the periods presented. (2) SSC has absorbed the cost of the sales load (i.e, underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock. (3) Total return based on market value is based on the change in market price per share between the beginning and ending market prices per share in each period and assumes that common stock dividends are reinvested in accordance with our common stock dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the beginning and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our common stock dividend reinvestment plan. For periods less than a year, total return is not annualized. (4) Ratio is not annualized. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS [Text Block] | NOTE 12 — SUBSEQUENT EVENTS The Company’s management evaluated subsequent events through the date on which the financial statements were issued. Other than the item listed below, there have been no subsequent events that occurred during such period that have required adjustment or disclosure in the financial statements. On May 3, 2023, the Company invested $4.32 million in Dreamfields Brand, Inc.’s first lien senior secured term loan |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), including the requirements under ASC 946, Financial Services—Investment Companies and Articles 6 and 12 of Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the financial statements have been made. The current period’s results of operations are not necessarily indicative of results that may be achieved for the year |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions affecting reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income, expenses, and gains and losses during the reported period |
Investment Valuation | Investment Valuation The Company’s investments are recorded at their estimated fair value on the Statement of Assets and Liabilities. Investments for which market quotations are readily available will typically be valued at the bid price of those market quotations. To validate market quotations, we utilize a number of factors to determine if the quotations are representative of fair value, including the source and number of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Adviser, as the Company’s valuation designee (the “Valuation Designee”), based on inputs that may include valuations, or ranges of valuations, provided by independent third-party valuation firm(s) engaged by the Adviser. Generally, the valuation approach used for debt investments is the income approach. The approach derives a value based on either determining the present value of a projected level of cash flow, including a terminal value, or by the capitalization of a normalized measure of future cash flow. The discounted cash flow (“DCF”) method, one of the methodologies under the income approach, involves estimating future cash flows under various scenarios and discounting them to the measurement date. The discount rate represents a return required by a market participant in order to make an investment in the subject company. Generally, the valuation approach used for debt investments is the income approach. Alternatively, the market approach or asset approach may be used. The market approach is a way of determining a value indication by using one or more methods that compare the portfolio company to similar businesses. Value indicators are applied to relevant financial information of the entity being valued to estimate its fair value. There are two methodologies to consider under the market approach: the guideline company method (“GCM”) and the controlling transaction method (“CTM”). The GCM is based on the premise that the pricing multiples of comparable publicly traded companies can be used as a tool to value privately held companies. The publicly traded companies’ ratios and business enterprise value provide guidance in the valuation process. Considerations of factors such as size, growth, profitability and return on investment are also analyzed and compared to the subject business. The CTM is based on the same premise as the GCM. Guideline transactions include change-of-control transactions involving public or private businesses for companies engaged in similar lines of business or with similar economic characteristics. The valuation considers the price at which the merger or acquisition took place to other factors in order to create a pricing multiple that can be used to determine an estimate of value for the subject company. The asset approach provides an indication of the company’s value by developing a valuation-based balance sheet. This approach requires adjusting the historical assets and liabilities listed on the U.S. GAAP-based balance sheet to market fair values. The excess of assets over liabilities represents the tangible value of the business enterprise. The asset approach does not consider the relevant earnings capacity of a going concern business. Effective September 8, 2022, pursuant to Rule 2a-5 under the 1940 Act, the Board designated the Adviser as the Valuation Designee to perform the fair value determinations for the Company, subject to the oversight of the Board and certain Board reporting and other requirements. As part of the valuation process, the Adviser takes into account relevant factors in determining the fair value of our investments, including: the estimated enterprise value of a portfolio company (i.e., the total fair value of the portfolio company’s debt and equity), the nature and realizable value of any collateral, the portfolio company’s ability to make payments based on its earnings and cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, and overall changes in the interest rate environment and the credit markets. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Adviser considers whether the pricing indicated by the external event corroborates its valuation. The Adviser undertakes a multi-step valuation process, which includes, among other procedures, the following: • With respect to investments for which market quotations are readily available, those investments will typically be valued at the bid price of those market quotations; • With respect to investments for which market quotations are not readily available, the valuation process begins with the Adviser’s valuation committee establishing a preliminary valuation of each investment, which may be based on valuations, or ranges of valuations, provided by independent valuation firm(s); • Preliminary valuations are documented and discussed by the Adviser’s valuation committee and, where appropriate, the independent valuation firm(s); and • The Adviser determines the fair value of each investment. We conduct this valuation process on a quarterly basis. We apply Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurement • Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date; • Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities • Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of such investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be realized. Further, such investments are generally less liquid than publicly traded securities and may be subject to contractual and other restrictions on resale. If we were required to liquidate a portfolio investment in a forced or liquidation sale, it could realize amounts that are different from the amounts presented and such differences could be material. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected previously. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consists of funds deposited with financial institutions and short-term (maturity of 90 days or less) liquid investments and money market funds. Funds held in money market funds are considered Level 1 in the fair value hierarchy in accordance with ASC 820. Cash held in demand deposit accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit. As of March 31, 2023 and December 31, 2022, cash and cash equivalents consisted of $32.54 million and $35.13 million, respectively, of which $32.54 million and $35.13 million, respectively, was held in the State Street Institutional U.S. Government Money Market Fund. |
Earnings per share | Earnings per share Basic earnings per share is computed by dividing net increase (decrease) in net assets resulting from operations |
Investment Transactions | Investment Transactions Investment transactions are recorded on trade date. Realized gains or losses are recognized as the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments written off during the period, net of recoveries. Current-period changes in fair value of investments are reflected as a component of the net change in unrealized appreciation/(depreciation) on investments on the Statements of Operations. The net change in unrealized appreciation/(depreciation) primarily reflects the change in investment fair values as of the last business day of the reporting period, including the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period. Investments traded but not yet settled are reported in payable for investments purchased and receivable for investments sold on the Statement of Assets and Liabilities. |
Interest and Dividend Income | Interest and Dividend Income Interest income is recorded on the accrual basis and includes accretion and amortization of discounts or premiums, respectively. Discounts and premiums to par value on securities purchased are accreted and amortized, respectively, into interest income over the contractual life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion and amortization of discounts and premiums, respectively. Upon prepayment of a loan or debt security, any prepayment premiums and unamortized discounts or premiums are recorded as interest income in the current period. When a debt security becomes 90 days or more past due, or if management otherwise does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the debt security on non-accrual status and cease recognizing interest income on that debt security until all principal and interest due has been paid or the Company believes the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection. As of March 31, 2023 and December 31, 2022, there were no loan investments in the portfolio placed on non-accrual status. We typically receive debt investment origination or closing fees in connection with investments. Such debt investment origination and closing fees are capitalized as unearned income and offset against investment cost basis on our Statements of Assets and Liabilities and accreted into interest income using the effective yield method over the term of the investment. Upon the prepayment of a debt investment, any unaccreted debt investment origination and closing fees are accelerated into interest income. Interest income earned, excluding accretion of discounts and amortization of premiums, was $2,317,020 and $10,073 for the three months ended March 31, 2023 and 2022. As of March 31, 2023 and December 31, 2022, $1,568,026 and $1,559,081, respectively were recorded as interest receivable. Dividend income on preferred equity securities is recorded on the accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Certain investments may have contractual PIK interest or dividends. PIK interest or dividends represents accrued interest or dividends that is added to the principal amount of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity. If PIK interest or dividends are not expected to be realized by the Company, the investment generating PIK interest or dividends will be placed on non-accrual status. When an investment with PIK is placed on non-accrual status, the accrued, uncapitalized interest or dividends are generally reversed through interest or dividend income, respectively. |
Fee Income | Fee Income All transaction fees earned in connection with our investments are recognized as fee income and are generally non-recurring. Such fees typically include fees for services, including structuring and advisory services, provided to portfolio companies. We recognize income from fees for providing such structuring and advisory services when the services are rendered or the transactions are completed. For the three months ended March 31, 2023 and 2022, no fee income was earned. |
Income Taxes | Income Taxes The Company adopted an initial tax year end of December 31, 2021 and was taxed as a corporation for U.S. federal income tax purposes for the tax period ended December 31, 2021. The Company adopted the tax year end of March 31, 2022 and elected to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code for the tax period January 1, 2022 through March 31, 2022, and intends to maintain such election in the current and future taxable years. To maintain its tax treatment as a RIC, the Company must meet specified source-of-income and asset diversification requirements and timely distribute to its stockholders for each taxable year at least 90% of its investment company taxable income. In order for the Company not to be subject to U.S. federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its net ordinary income for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year and (iii) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years. The Company, at its discretion (subject to the requirement to distribute 90% of its investment company taxable income as described above), may carry forward taxable income in excess of calendar year dividends and pay a 4% nondeductible U.S. federal excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. As of March 31, 2023 and December 31, 2022, $0 and $80,566 of accrued excise taxes remained payable. The Company evaluates 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 in accordance with ASC Topic 740, Income Taxes (“ASC 740”). Tax benefits of positions not deemed to meet the more-likely-than-not threshold, or uncertain tax positions, would be recorded as 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 Based on the analysis of the Company’s tax position, the Company has no uncertain tax positions that met the recognition or measurement criteria as of March 31, 2023 and December 31, 2022. The Company does not anticipate any significant increase or decrease in unrecognized tax benefits for the next twelve months. All of the Company’s tax returns remain subject to examination by U.S. federal and state tax authorities. |
Organization Expenses and Offering Costs | Organization Expenses and Offering Costs Organizational expenses Costs associated with the organization of the Company are expensed as incurred. These expenses consist primarily of legal fees and other costs of organizing the Company. For the three months ended March 31, 2023 and 2022, the Company incurred organizational expenses of $0 and $34,168, respectively. As unpaid organizational expenses. Offering costs These costs consist primarily of legal fees and other costs incurred in connection with the Company’s share offerings, the preparation of the Company’s registration statement, and registration fees. Costs associated with the offering of common shares of the Company are capitalized as deferred offering and, if any, are included in deferred offering costs on the Statements of Assets and Liabilities. Costs of approximately $1,690,184 |
New Accounting Standards | New Accounting Standards Management does not believe any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
INVESTMENTS [Abstract] | |
Portfolio Investments | The Company’s portfolio investments are in companies conducting business in or supporting the cannabis industries. The following tables summarize the composition of the Company’s portfolio investments by industry at cost and fair value and as a percentage of the total portfolio as of March 31, 2023 and December 31, 2022. March 31, 2023 Amortized Cost Fair Value Industry Amount % Amount % Wholesale Trade $ 54,910,290 100.0 % $ 55,623,299 100.0 % Total $ 54,910,290 100.0 % $ 55,623,299 100.0 % December 31, 2022 Amortized Cost Fair Value Industry Amount % Amount % Wholesale Trade $ 50,527,898 100.0 % $ 50,254,550 100.0 % Total $ 50,527,898 100.0 % $ 50,254,550 100.0 % The geographic composition is determined by the location of headquarters of the portfolio company. The following tables summarize the composition of the Company’s portfolio investments by geographic region of the United States at cost and fair value and as a percentage of the total portfolio as of March 31, 2023 and December 31, 2022. Geographic regions are defined as: West, for the states of WA, OR, ID, MT, WY, CO, AK, HI, UT, NV and CA; Midwest, for the states ND, SD, NE, KS, MO, IA, MN, WI, MI, IL, IN and OH; Northeast, for the states PA, NJ, NY, CT, RI, MA, VT, NH and ME; Southeast, for the states of AR, LA, MS, TN, KY, AL, FL, GA, SC, NC, VA, DE, WV and MD; and Southwest, for the states of AZ, NM, TX and OK. March 31, 2023 Amortized Cost Fair Value Geographic Location Amount % Amount % Midwest $ 24,472,332 44.5 % $ 24,959,628 44.9 % West 20,509,585 37.4 20,571,719 37.0 Northeast 8,130,300 14.8 8,287,292 14.9 Southeast 1,798,073 3.3 1,804,660 3.2 Total $ 54,910,290 100.0 % $ 55,623,299 100.0 % December 31, 2022 Amortized Cost Fair Value Geographic Location Amount % Amount % Midwest $ 24,420,752 48.4 % $ 24,358,686 48.5 % West 20,479,987 40.5 20,268,705 40.3 Northeast 3,854,475 7.6 3,854,475 7.7 Southeast 1,772,684 3.5 1,772,684 3.5 Total $ 50,527,898 100.0 % $ 50,254,550 100.0 % The following tables summarize the composition of the Company’s portfolio investments by investment type at cost and fair value and as a percentage of the total portfolio as of March 31, 2023 and December 31, 2022. March 31, 2023 Amortized Cost Fair Value Investment Amount % Amount % Senior Secured First Lien Term Loan $ 45,176,109 82.3 % $ 45,703,391 82.2 % Senior Secured Notes 9,734,181 17.7 9,919,908 17.8 Total $ 54,910,290 100.0 % $ 55,623,299 100.0 % December 31, 2022 Amortized Cost Fair Value Investment Amount % Amount % Senior Secured First Lien Term Loan $ 40,871,914 80.9 % $ 40,660,633 80.9 % Senior Secured Notes 9,655,984 19.1 9,593,917 19.1 Total $ 50,527,898 100.0 % $ 50,254,550 100.0 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Investments Measured at Fair Value by Investment Type on Recurring Basis | The Company’s investments measured at fair value by investment type on a recurring basis as of March 31, 2023 were as follows: Fair Value Measurements at March 31, 2023 Using Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Senior Secured First Lien Term Loan $ - $ - $ 45,703,391 $ 45,703,391 Senior Secured Notes - - 9,919,908 9,919,908 Total $ - $ - $ 55,623,299 $ 55,623,299 The Company’s investments measured at fair value by investment type on a recurring basis as of December 31, 2022 were as follows: Fair Value Measurements at December 31, 2022 Using Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Senior Secured First Lien Term Loan $ - $ - $ 40,660,663 $ 40,660,663 Senior Secured Notes - - 9,593,917 9,593,917 Total $ - $ - $ 50,254,580 $ 50,254,580 |
Significant Unobservable Inputs used in Fair Value Measurement Level 3 Portfolio Investments | The following tables provide a summary of the significant unobservable inputs used to fair value the Level 3 portfolio investments as of March 31, 2023 and December 31, 2022. The methodology for the determination of the fair value of the Company’s investments is discussed in “Note 2 – Significant Accounting Policies”. Discount Rate ranges are shown as spread over Treasuries for Senior Secured First Lien Term Loans. Investment Type Fair Value as of Valuation Techniques/ Methodologies Unobservable Input Range Weighted Average (1) Senior Secured First Lien Term Loan $ 45,703,391 Discounted Cash Flow Discount Rate 11.6% - 14.8 % 12.9 % Senior Secured Notes 9,919,908 Discounted Cash Flow Discount Rate 9.7% - 15.9 % 11.4 % Total $ 55,623,299 Investment Type Fair Value as of December 31, 2022 Valuation Techniques/ Methodologies Unobservable Input Range Weighted Average (1) Senior Secured First Lien Term Loan $ 40,660,633 Discounted Cash Flow Discount Rate 7.2% - 9.6 % 8.4 % Volatility 20.0% - 20.0 % 20.0 % Senior Secured Notes 9,593,917 Discounted Cash Flow Discount Rate 11.6% - 18.7 % 14.3 % Volatility 7.0% - 20.0 % 12.4 % Total $ 50,254,550 (1) The weighted average is calculated based on the fair value of each investment. |
Changes in Fair Value of Level 3 Portfolio Investments | The following table provides a summary of changes in the fair value of the Company’s Level 3 portfolio investments for the three months ended March 31, 2023: Senior Secured Senior Total Fair Value as of December 31, 2022 $ 40,660,633 $ 9,593,917 $ 50,254,550 Purchases 4,230,000 - 4,230,000 Accretion of discount and fees (amortization of premium), net 62,621 78,198 140,819 PIK interest 11,573 - 11,573 Sales of investments - - - Proceeds from principal repayments - - - Net realized gain (loss) on investments - - - Net change in unrealized appreciation (depreciation) on investments 738,564 247,793 986,357 Balance as of March 31, 2023 $ 45,703,391 $ 9,919,908 $ 55,623,299 Net change in unrealized appreciation/depreciation on Level 3 investments still held as of March 31, 2023 $ 738,564 $ 247,793 $ 986,357 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE [Abstract] | |
Computation of Weighted Average Basic and Diluted Net Increase (Decrease) in Net Assets Per Share from Operations | The following table sets forth the computation of the weighted average basic and diluted net increase (decrease) in net assets per share from operations for the three months ended March 31, 2023 and 2022: For the three For the three March 31, 2023 March 31, 2022 Net increase (decrease) in net assets resulting from operations $ 2,357,080 $ (215,531 ) Weighted Average Shares Outstanding - basic and diluted 6,214,672 3,557,529 Net increase (decrease) in net assets resulting from operations per share - basic and diluted $ 0.38 $ (0.06 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
INCOME TAXES [Abstract] | |
Components of Accumulated Losses | As of March 31, 2023, the components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Statements of Assets and Liabilities by temporary book or tax differences primarily arising from the tax treatment of organizational costs. March 31, 2023 Undistributed ordinary income $ 3,418,714 Net unrealized appreciation (depreciation) on investments 713,009 Other temporary differences (399,948 ) Total 3,731,775 |
Investments and Cash Equivalents for Federal Income tax | The following table sets forth the tax cost basis and the estimated aggregate gross unrealized appreciation and depreciation from investments and cash equivalents for federal income tax purposes as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Tax Cost of Investments and Cash Equivalents $ 87,454,317 $ 85,653,218 Gross unrealized appreciation $ 713,009 $ - Gross unrealized depreciation - (273,348 ) Net unrealized appreciation (depreciation) from investments and cash equivalents $ 713,009 $ (273,348 ) |
FINANCIAL HIGHLIGHTS (Tables)
FINANCIAL HIGHLIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
FINANCIAL HIGHLIGHTS [Abstract] | |
Financial Highlights | The following presents financial highlights for the three months ended March 31, 2023 and 2022: For the three Period from March 31, 2023 March 31, 2022* Per share data: Net asset value at beginning of period $ 13.91 $ 14.00 Net investment income (loss) (1) 0.22 (0.07 ) Net realized and unrealized gains/(losses) on investments (1) 0.16 - Net increase/(decrease) in net assets resulting from operations 0.38 (0.07 ) Offering costs (2) - (0.27 ) Permanent tax adjustments - (0.05 ) Net asset value at end of period $ 14.29 $ 13.61 Net assets at end of period $ 88,832,809 $ 84,552,090 Shares outstanding at end of period 6,214,672 6,214,672 Weighted average net assets $ 86,501,919 $ 83,301,328 Per share market value at end of period $ 9.19 $ 13.30 Total return based on market value (3) (6.22 )% (5.00 )% Total return based on net asset value (3) 2.73 % (2.79 )% Ratio/Supplemental data: Ratio of expenses to average net assets (4) 1.26 % 0.22 % Ratio of net investment income (loss) to average net assets (4) 1.58 % (0.20 )% Portfolio turnover N/A N/A * The Company was formed on January 25, 2021 and the effective date of the registration statement was February 3, 2022. (1) The per share data was derived by using the weighted average shares outstanding during the periods presented. (2) SSC has absorbed the cost of the sales load (i.e, underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock. (3) Total return based on market value is based on the change in market price per share between the beginning and ending market prices per share in each period and assumes that common stock dividends are reinvested in accordance with our common stock dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the beginning and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our common stock dividend reinvestment plan. For periods less than a year, total return is not annualized. (4) Ratio is not annualized. |
ORGANIZATION (Details)
ORGANIZATION (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 04, 2022 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instruments [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
IPO [Member] | |||
Debt Instruments [Abstract] | |||
Number of shares issued (in shares) | 6,214,286 | ||
Common stock, par value (in dollars per share) | $ 0.01 | ||
Shares issued | $ 87 | ||
Minimum [Member] | |||
Debt Instruments [Abstract] | |||
Debt investments term period | 2 years | ||
Maximum [Member] | |||
Debt Instruments [Abstract] | |||
Debt investments term period | 6 years |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES, Cash and Cash Equivalents (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 32,544,027 | $ 35,125,320 |
State Street Institutional U.S. Government Money Market Fund [Member] | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 32,540,000 | $ 35,130,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES, Interest and Dividend Income (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Investments held by the Company | $ 0 | $ 0 | |
Interest income earned, excluding accretion of discounts | 2,317,020 | $ 10,073 | |
Interest receivable | $ 1,568,026 | $ 1,559,081 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES, Fee Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Fee income | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES, Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Percentage of taxable income and gain planned to be distributed by company | 90% | |
Minimum percentage of ordinary income | 98% | |
Minimum percentage of capital gains | 98.20% | |
Federal excise tax rate based on distribution requirements | 4% | |
Accrued exercise taxes payable | $ 0 | $ 80,566 |
Increase or decrease in unrecognized tax benefits | $ 0 | $ 0 |
Minimum [Member] | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Percentage of taxable income and gain planned to be distributed by company | 90% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES, Organization Expenses and Offering Costs (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Organizational expenses | $ 0 | $ 34,168 | |
Organizational expenses unpaid | 0 | $ 0 | |
Offering costs charged to capital | 0 | $ 1,690,184 | |
Offering costs unpaid | $ 0 | $ 0 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Investments, Loans [Abstract] | |||
Percent of portfolio that is variable rate | 82.30% | 80.90% | |
Percent of portfolio that is fixed rate | 17.70% | 19.10% | |
Loan repayment period | 3 years | ||
Amortized Cost [Abstract] | |||
Amount | $ 54,910,290 | $ 50,527,898 | $ 50,527,898 |
Percentage | 100% | 100% | 100% |
Fair Value [Abstract] | |||
Amount | $ 55,623,299 | $ 50,254,550 | $ 50,254,550 |
Percentage | 100% | 100% | 100% |
Minimum [Member] | |||
Investments, Loans [Abstract] | |||
Loans maturity period | 3 years | ||
Maximum [Member] | |||
Investments, Loans [Abstract] | |||
Loans maturity period | 6 years | ||
Senior Secured First Lien Term Loan [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 45,176,109 | $ 40,871,914 | |
Percentage | 82.30% | 80.90% | |
Fair Value [Abstract] | |||
Amount | $ 45,703,391 | $ 40,660,633 | |
Percentage | 82.20% | 80.90% | |
Senior Secured Notes [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 9,734,181 | $ 9,655,984 | |
Percentage | 17.70% | 19.10% | |
Fair Value [Abstract] | |||
Amount | $ 9,919,908 | $ 9,593,917 | |
Percentage | 17.80% | 19.10% | |
Midwest [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 24,472,332 | $ 24,420,752 | |
Percentage | 44.50% | 48.40% | |
Fair Value [Abstract] | |||
Amount | $ 24,959,628 | $ 24,358,686 | |
Percentage | 44.90% | 48.50% | |
West [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 20,509,585 | $ 20,479,987 | |
Percentage | 37.40% | 40.50% | |
Fair Value [Abstract] | |||
Amount | $ 20,571,719 | $ 20,268,705 | |
Percentage | 37% | 40.30% | |
Northeast [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 8,130,300 | $ 3,854,475 | |
Percentage | 14.80% | 7.60% | |
Fair Value [Abstract] | |||
Amount | $ 8,287,292 | $ 3,854,475 | |
Percentage | 14.90% | 7.70% | |
Southeast [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 1,798,073 | $ 1,772,684 | |
Percentage | 3.30% | 3.50% | |
Fair Value [Abstract] | |||
Amount | $ 1,804,660 | $ 1,772,684 | |
Percentage | 3.20% | 3.50% | |
Wholesale Trade [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 54,910,290 | $ 50,527,898 | |
Percentage | 100% | 100% | |
Fair Value [Abstract] | |||
Amount | $ 55,623,299 | $ 50,254,550 | |
Percentage | 100% | 100% | |
Investment, Unaffiliated Issuer [Member] | |||
Amortized Cost [Abstract] | |||
Amount | $ 54,910,290 | $ 50,527,898 | |
Fair Value [Abstract] | |||
Amount | $ 55,623,299 | $ 50,254,550 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS, Investments Measured at Fair Value (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Assets [Abstract] | |||
Fair value | $ 55,623,299 | $ 50,254,550 | $ 50,254,550 |
Senior Secured First Lien Term Loan [Member] | |||
Assets [Abstract] | |||
Fair value | 45,703,391 | 40,660,633 | |
Senior Secured Notes [Member] | |||
Assets [Abstract] | |||
Fair value | 9,919,908 | 9,593,917 | |
Investment, Unaffiliated Issuer [Member] | |||
Assets [Abstract] | |||
Fair value | 55,623,299 | 50,254,550 | |
Recurring [Member] | |||
Assets [Abstract] | |||
Fair value | 55,623,299 | 50,254,580 | |
Recurring [Member] | Senior Secured First Lien Term Loan [Member] | |||
Assets [Abstract] | |||
Fair value | 45,703,391 | 40,660,663 | |
Recurring [Member] | Senior Secured Notes [Member] | |||
Assets [Abstract] | |||
Fair value | 9,919,908 | 9,593,917 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) Member | |||
Assets [Abstract] | |||
Fair value | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) Member | Senior Secured First Lien Term Loan [Member] | |||
Assets [Abstract] | |||
Fair value | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) Member | Senior Secured Notes [Member] | |||
Assets [Abstract] | |||
Fair value | 0 | 0 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Fair value | 0 | 0 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Senior Secured First Lien Term Loan [Member] | |||
Assets [Abstract] | |||
Fair value | 0 | 0 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Senior Secured Notes [Member] | |||
Assets [Abstract] | |||
Fair value | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Fair value | 55,623,299 | 50,254,580 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Senior Secured First Lien Term Loan [Member] | |||
Assets [Abstract] | |||
Fair value | 45,703,391 | 40,660,663 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Senior Secured Notes [Member] | |||
Assets [Abstract] | |||
Fair value | $ 9,919,908 | $ 9,593,917 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS, Significant Unobservable Inputs used in Fair Value Measurement Level 3 Portfolio Investments (Details) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Fair value | $ 55,623,299 | $ 50,254,550 | $ 50,254,550 | |
Senior Secured First Lien Term Loan [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Fair value | $ 45,703,391 | $ 40,660,633 | ||
Senior Secured First Lien Term Loan [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.116 | 0.072 | ||
Senior Secured First Lien Term Loan [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.148 | 0.096 | ||
Senior Secured First Lien Term Loan [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | [1] | 0.129 | 0.084 | |
Senior Secured First Lien Term Loan [Member] | Discounted Cash Flow [Member] | Volatility [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.20 | |||
Senior Secured First Lien Term Loan [Member] | Discounted Cash Flow [Member] | Volatility [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.20 | |||
Senior Secured First Lien Term Loan [Member] | Discounted Cash Flow [Member] | Volatility [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | [1] | 0.20 | ||
Senior Secured Notes [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Fair value | $ 9,919,908 | $ 9,593,917 | ||
Senior Secured Notes [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.097 | 0.116 | ||
Senior Secured Notes [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.159 | 0.187 | ||
Senior Secured Notes [Member] | Discounted Cash Flow [Member] | Discount Rate [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | [1] | 0.114 | 0.143 | |
Senior Secured Notes [Member] | Discounted Cash Flow [Member] | Volatility [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.07 | |||
Senior Secured Notes [Member] | Discounted Cash Flow [Member] | Volatility [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | 0.20 | |||
Senior Secured Notes [Member] | Discounted Cash Flow [Member] | Volatility [Member] | Weighted Average [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Measurement Input | [1] | 0.124 | ||
Investment, Unaffiliated Issuer [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||
Fair value | $ 55,623,299 | $ 50,254,550 | ||
[1]The weighted average is calculated based on the fair value of each investment. |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS, Summary of Changes in Fair Value of Level 3 Portfolio Investments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in Fair Value of Level 3 Portfolio Investments [Abstract] | ||
Fair value, beginning of period | $ 50,254,550 | |
Purchases | 4,230,000 | |
Accretion of discount and fees (amortization of premium), net | 140,819 | |
PIK interest | 11,573 | |
Sales of investments | 0 | |
Proceeds from principal repayments | 0 | |
Net realized gain (loss) from investments | 0 | |
Net change in unrealized appreciation (depreciation) from investments | 986,357 | |
Fair value, end of period | 55,623,299 | |
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of March 31, 2023 | 986,357 | |
Fair value invested | 55,623,299 | $ 0 |
Senior Secured First Lien Term Loan [Member] | ||
Changes in Fair Value of Level 3 Portfolio Investments [Abstract] | ||
Fair value, beginning of period | 40,660,633 | |
Purchases | 4,230,000 | |
Accretion of discount and fees (amortization of premium), net | 62,621 | |
PIK interest | 11,573 | |
Sales of investments | 0 | |
Proceeds from principal repayments | 0 | |
Net realized gain (loss) from investments | 0 | |
Net change in unrealized appreciation (depreciation) from investments | 738,564 | |
Fair value, end of period | 45,703,391 | |
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of March 31, 2023 | 738,564 | |
Fair value invested | 45,703,391 | |
Senior Secured Notes [Member] | ||
Changes in Fair Value of Level 3 Portfolio Investments [Abstract] | ||
Fair value, beginning of period | 9,593,917 | |
Purchases | 0 | |
Accretion of discount and fees (amortization of premium), net | 78,198 | |
PIK interest | 0 | |
Sales of investments | 0 | |
Proceeds from principal repayments | 0 | |
Net realized gain (loss) from investments | 0 | |
Net change in unrealized appreciation (depreciation) from investments | 247,793 | |
Fair value, end of period | 9,919,908 | |
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of March 31, 2023 | 247,793 | |
Fair value invested | $ 9,919,908 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) qtr | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Investment Advisory Agreement [Abstract] | |||
Management fee expenses incurred | $ 238,419 | $ 0 | |
Management fee payable | 409,384 | $ 170,965 | |
Income-based incentive fee expenses | 203,821 | 0 | |
Income-based incentive fee payable | 203,821 | 0 | |
Capital gains incentive fee expenses | 142,602 | 0 | |
Capital gains incentive fee payable | 142,602 | 0 | |
Due to affiliate | 0 | 37 | |
Common stock purchased | $ 0 | $ 85,275,170 | |
Investment Advisory Agreement [Member] | |||
Investment Advisory Agreement [Abstract] | |||
Percentage of management fee payable | 1.75% | ||
Number of recent quarters | qtr | 2 | ||
Duration of incentive fee payable | quarterly | ||
Percentage payable of Pre-Incentive Fee Net Investment Income | 20% | ||
Percentage payable of Pre-Incentive Fee Net Investment Income subject to a preferred return, or "hurdle" per quarter | 1.75% | ||
Percentage of Pre-Incentive Fee Net Investment Income subject to a preferred return, or "hurdle" per annum | 7% | ||
Percentage payable of realized capital gains on a cumulative basis | 20% | ||
Silver Spike Capital, LLC [Member] | IPO [Member] | |||
Investment Advisory Agreement [Abstract] | |||
Common stock purchased | $ 63,000,000 | ||
Percentage of voting stock held | 72% | ||
Cost of sales incurred | $ 2,070,000 | ||
Silver Spike Capital, LLC [Member] | Investment Advisory Agreement [Member] | |||
Investment Advisory Agreement [Abstract] | |||
Due to affiliate | 0 | 37 | |
Payment of related party expenses | $ 984 | $ 387,373 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Commitments and contingencies |
COMMON STOCK (Details)
COMMON STOCK (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
COMMON STOCK [Abstract] | ||||
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares issued (in shares) | 6,214,672 | 6,214,672 | ||
Common stock, shares outstanding (in shares) | 6,214,672 | 6,214,672 | [1] | 6,214,672 |
Value of common stock sold | $ 85,000,000 | |||
Offering costs | $ 2,000,000 | $ 1,609,184 | ||
Issuance of common stock pursuant to distribution reinvestment plan (in shares) | 0 | 0 | ||
[1]The Company was formed on January 25, 2021 and the effective date of the registration statement was February 3, 2022. |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Increase (Decrease) in Net Assets Per Share [Abstract] | ||
Net increase (decrease) in net assets resulting from operations | $ 2,357,080 | $ (215,531) |
Weighted Average Shares Outstanding - Basic (in shares) | 6,214,672 | 3,557,529 |
Weighted Average Shares Outstanding - Diluted (in shares) | 6,214,672 | 3,557,529 |
Net increase (decrease) in net assets resulting from operations per share - basic (in dollars per share) | $ 0.38 | $ (0.06) |
Net increase (decrease) in net assets resulting from operations per share - diluted (in dollars per share) | $ 0.38 | $ (0.06) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | |
INCOME TAXES [Abstract] | ||||
Uncertain tax positions | $ 0 | $ 0 | ||
Capital losses | 0 | |||
Distributions paid | 0 | $ 0 | ||
Income Taxes Summary [Abstract] | ||||
Effect of permanent adjustments | 0 | 0 | ||
Components of Accumulated Losses [Abstract] | ||||
Undistributed ordinary income | 3,418,714 | |||
Net unrealized appreciation (depreciation) from investments | 713,009 | |||
Other temporary differences | (399,948) | |||
Total | 3,731,775 | |||
Aggregate Gross Unrealized Appreciation and Depreciation from Investments and Cash Equivalents for Federal Income Tax Purposes [Abstract] | ||||
Tax Cost of Investments and Cash Equivalents | 87,454,317 | 85,653,218 | ||
Gross unrealized appreciation | 713,009 | 0 | ||
Gross unrealized depreciation | 0 | (273,348) | ||
Net unrealized appreciation (depreciation) from investments and cash equivalents | 713,009 | $ (273,348) | ||
Additional Paid-in Capital [Member] | ||||
Income Taxes Summary [Abstract] | ||||
Effect of permanent adjustments | 121,099 | (295,235) | ||
Accumulated Loss [Member] | ||||
Income Taxes Summary [Abstract] | ||||
Effect of permanent adjustments | $ (121,099) | $ 295,235 | $ 295,235 |
FINANCIAL HIGHLIGHTS (Details)
FINANCIAL HIGHLIGHTS (Details) - USD ($) | 2 Months Ended | 3 Months Ended | |||
Mar. 31, 2022 | [1] | Mar. 31, 2023 | Dec. 31, 2022 | ||
Per share data [Roll Forward] | |||||
Net asset value at beginning of period (in dollars per share) | $ 14 | $ 13.91 | |||
Net investment income (loss) (in dollars per share) | [2] | (0.07) | 0.22 | ||
Net realized and unrealized gains/(losses) on investments (in dollars per share) | [2] | 0 | 0.16 | ||
Net increase/(decrease) in net assets resulting from operations (in dollars per share) | (0.07) | 0.38 | |||
Offering costs (in dollars per share) | [3] | (0.27) | 0 | ||
Permanent tax adjustments (in dollars per share) | (0.05) | 0 | |||
Net asset value at end of period (in dollars per share) | $ 13.61 | $ 14.29 | |||
Net assets at end of period | $ 84,552,090 | $ 88,832,809 | |||
Shares outstanding at end of period (in shares) | 6,214,672 | 6,214,672 | 6,214,672 | ||
Weighted average net assets | $ 83,301,328 | $ 86,501,919 | |||
Per share market value at end of period (in dollars per share) | $ 13.3 | $ 9.19 | |||
Total return based on market value | [4] | (5.00%) | (6.22%) | ||
Total return based on net asset value | [4] | (2.79%) | 2.73% | ||
Ratio/Supplemental data [Abstract] | |||||
Ratio of expenses to average net assets | [5] | 0.22% | 1.26% | ||
Ratio of net investment income (loss) to average net assets | [5] | (0.20%) | 1.58% | ||
[1]The Company was formed on January 25, 2021 and the effective date of the registration statement was February 3, 2022.[2]The per share data was derived by using the weighted average shares outstanding during the periods presented.[3]SSC has absorbed the cost of the sales load (i.e, underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock.[4]Total return based on market value is based on the change in market price per share between the beginning and ending market prices per share in each period and assumes that common stock dividends are reinvested in accordance with our common stock dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the beginning and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our common stock dividend reinvestment plan. For periods less than a year, total return is not annualized.[5]Ratio is not annualized. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
May 03, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | ||||
Investments [Abstract] | |||||||
Amortized cost | $ 54,910,290 | $ 50,527,898 | $ 50,527,898 | ||||
Investment, Identifier [Axis]: AYR Wellness INC. Senior Secured Notes Due12102024 Fixed Interest Rate 12.5% | |||||||
Investments [Abstract] | |||||||
Investment date | [1] | Oct. 11, 2022 | Oct. 11, 2022 | ||||
Principal amount | [2] | $ 2,000,000 | $ 2,000,000 | ||||
Investment, Issuer Name [Extensible Enumeration] | [3] | ssic:AYRWellnessIncMember | ssic:AYRWellnessIncMember | ||||
Investment, Type [Extensible Enumeration] | ssic:SeniorSecuredNoteMember | [4] | ssic:SeniorSecuredNoteMember | [5] | |||
Maturity date | Dec. 10, 2024 | Dec. 10, 2024 | |||||
Amortized cost | $ 1,798,000 | $ 1,773,000 | |||||
Investment, Identifier [Axis]: Curaleaf Holdings, INC. Senior Secured Notes Due12152026 Fixed Interest Rate 8% | |||||||
Investments [Abstract] | |||||||
Investment date | [1] | Oct. 11, 2022 | Oct. 11, 2022 | ||||
Principal amount | [2] | $ 4,500,000 | $ 4,500,000 | ||||
Investment, Issuer Name [Extensible Enumeration] | [3] | ssic:CuraleafHoldingsIncMember | ssic:CuraleafHoldingsIncMember | ||||
Investment, Type [Extensible Enumeration] | ssic:SeniorSecuredNoteMember | [4] | ssic:SeniorSecuredNoteMember | [5] | |||
Maturity date | Dec. 15, 2026 | Dec. 15, 2026 | |||||
Amortized cost | $ 3,887,000 | $ 3,854,000 | |||||
Investment, Identifier [Axis]: Investments And Cash Equivalents | |||||||
Investments [Abstract] | |||||||
Amortized cost | $ 87,454,000 | $ 85,653,000 | |||||
Investment, Identifier [Axis]: MariMed Inc. Senior Secured First Lien Term Loan Due 01/24/2023 Variable Interest Rate Prime Spread 5.75% Prime Floor 6.25% PIK 1.40% | |||||||
Investments [Abstract] | |||||||
Investment date | [1] | Jan. 24, 2023 | |||||
Principal amount | [2] | $ 4,512,000 | |||||
Investment, Issuer Name [Extensible Enumeration] | [3] | ssic:MariMedIncMember | |||||
Investment, Type [Extensible Enumeration] | [4] | Senior Secured First Lien Term Loan [Member] | |||||
Maturity date | Jan. 24, 2026 | ||||||
Amortized cost | $ 4,244,000 | ||||||
Investment, Identifier [Axis]: PharmaCann, Inc. Senior Secured Loan Due 6/30/2025 Fixed interest rate 12% | |||||||
Investments [Abstract] | |||||||
Investment date | [1] | Jun. 30, 2022 | Jun. 30, 2022 | ||||
Principal amount | [2] | $ 4,250,000 | $ 4,250,000 | ||||
Investment, Issuer Name [Extensible Enumeration] | [3] | ssic:PharmaCannIncMember | ssic:PharmaCannIncMember | ||||
Investment, Type [Extensible Enumeration] | ssic:SeniorSecuredNoteMember | [4] | ssic:SeniorSecuredNoteMember | [5] | |||
Maturity date | Jun. 30, 2025 | Jun. 30, 2025 | |||||
Amortized cost | $ 4,050,000 | $ 4,029,000 | |||||
Investment, Identifier [Axis]: Shryne Group, Inc. Senior Secured First Lien Term Loan Due 5/26/2026 Variable Interest Rate Prime Spread 8.5% Prime Floor 4.0% | |||||||
Investments [Abstract] | |||||||
Investment date | [1] | May 26, 2022 | May 26, 2022 | ||||
Principal amount | [2] | $ 21,000,000 | $ 21,000,000 | ||||
Investment, Issuer Name [Extensible Enumeration] | [3] | ssic:ShryneGroupIncMember | ssic:ShryneGroupIncMember | ||||
Investment, Type [Extensible Enumeration] | Senior Secured First Lien Term Loan [Member] | [4] | Senior Secured First Lien Term Loan [Member] | [5] | |||
Maturity date | May 26, 2026 | May 26, 2026 | |||||
Amortized cost | $ 20,509,000 | $ 20,480,000 | |||||
Investment, Identifier [Axis]: State Street Institutional U.S. Government Money Market Fund | |||||||
Investments [Abstract] | |||||||
Amortized cost | $ 32,544,000 | $ 35,125,000 | |||||
Investment, Identifier [Axis]: Verano Holdings Corp Senior Secured First Lien Term Loan Due10302026 Variable Interest Rate Prime Spread65 Prime Floor625 | |||||||
Investments [Abstract] | |||||||
Investment date | [1] | Oct. 27, 2022 | Oct. 27, 2022 | ||||
Principal amount | [2] | $ 21,000,000 | $ 21,000,000 | ||||
Investment, Issuer Name [Extensible Enumeration] | [3] | ssic:VeranoHoldingsCorpMember | ssic:VeranoHoldingsCorpMember | ||||
Investment, Type [Extensible Enumeration] | Senior Secured First Lien Term Loan [Member] | [4] | Senior Secured First Lien Term Loan [Member] | [5] | |||
Maturity date | Oct. 30, 2026 | Oct. 30, 2026 | |||||
Amortized cost | $ 20,422,000 | $ 20,392,000 | |||||
Investment, Identifier [Axis]: Wholesale Trade Debt Securities | |||||||
Investments [Abstract] | |||||||
Principal amount | [2] | 57,262,000 | 52,750,000 | ||||
Amortized cost | $ 54,910,000 | $ 50,528,000 | |||||
Subsequent Event [Member] | Investment, Identifier [Axis]: Dreamfields Brand, Inc.'s First Lien Senior Secured Term Loan Due 05/03/2026 Variable Interest Rate Spread 8.75% Prime Floor 7.50% | |||||||
Investments [Abstract] | |||||||
Investment date | May 03, 2023 | ||||||
Principal amount | $ 4,320,000 | ||||||
Investment, Issuer Name [Extensible Enumeration] | ssic:DreamfieldsBrandIncSFirstLienSeniorSecuredTermLoanDue05032026VariableInterestRateSpread875PrimeFloor750Member | ||||||
Investment, Type [Extensible Enumeration] | ssic:DreamfieldsBrandIncSFirstLienSeniorSecuredTermLoanDue05032026VariableInterestRateSpread875PrimeFloor750Member | ||||||
Maturity date | May 03, 2026 | ||||||
Amortized cost | $ 4,210,000 | ||||||
[1]Investment date represents the date of initial investment, at which date interest began accruing.[2]Principal is net of repayments, if any, as per the terms of the debt instrument’s contract.[3]All portfolio companies are located in the United States.[4]No debt investment is non-income producing as of March 31, 2023.[5]No debt investment is non-income producing as of December 31, 2022. |