Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 10, 2022 | |
Document Information [Line Items] | ||
Entity Registrant Name | PRINCETON CAPITAL CORP | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 120,486,061 | |
Amendment Flag | false | |
Entity Central Index Key | 0000845385 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Securities Act File Number | 814-00710 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-3516073 | |
Entity Address, Address Line One | 800 Turnpike Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | North Andover | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01845 | |
City Area Code | (978) | |
Local Phone Number | 794-3366 | |
Entity Interactive Data Current | Yes |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Control investments at fair value (cost of $27,353,273 and $27,353,273, respectively) | $ 17,965,147 | $ 22,615,962 | |
Non-control/non-affiliate investments at fair value (cost of $18,682,876 and $18,682,876, respectively) | 22,806,912 | 11,691,130 | |
Total investments at fair value (cost of $46,036,149 and $46,036,149, respectively) | 40,772,059 | 34,307,092 | |
Cash | 187,979 | 523,815 | |
Restricted cash | 40,624 | 40,586 | |
Due from portfolio companies | 229,540 | 225,396 | |
Interest receivable, net of allowance for bad debt of $430,445 and $430,445, respectively | 310,928 | 104,145 | |
Taxes receivable | 750 | ||
Prepaid expenses | 82,876 | 30,473 | |
Total assets | 41,624,006 | 35,232,257 | |
LIABILITIES | |||
Accrued management fees | 512,735 | 262,324 | |
Accounts payable | 364,873 | 203,645 | |
Due to affiliates | [1] | 472,500 | 273,016 |
Deferred fee income | 17,996 | ||
Accrued expenses and other liabilities | 78,521 | 2,284 | |
Total liabilities | 1,428,629 | 759,265 | |
Net assets | 40,195,377 | 34,472,992 | |
NET ASSETS | |||
Common Stock, par value $0.001 per share (250,000,000 shares authorized; 120,486,061 shares issued and outstanding at September 30, 2022 and December 31, 2021) | 120,486 | 120,486 | |
Paid-in capital | 64,868,884 | 64,868,884 | |
Accumulated deficit | (24,793,993) | (30,516,378) | |
Total net assets | $ 40,195,377 | $ 34,472,992 | |
Net asset value per share (in Dollars per share) | [2] | $ 0.334 | $ 0.286 |
[1]Amounts under Due to Affiliates are for accrued amounts payable to the Company’s investment advisor, House Hanover, LLC for the reimbursement of administration fees that it incurs on the Company’s behalf. See Note 7 of the Notes to Financial Statements.[2] Financial highlights are based on weighted average shares outstanding. |
Statements of Assets and Liab_2
Statements of Assets and Liabilities (Parentheticals) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | ||
Control investments at fair value | $ 27,353,273 | $ 27,353,273 |
Non-control/non-affiliate investments at fair value | 18,682,876 | 18,682,876 |
Investments at fair value cost | 46,036,149 | 46,036,149 |
Interest receivable, net of allowance for bad debt | $ 430,445 | $ 430,445 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in Shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in Shares) | 120,486,061 | 120,486,061 |
Common stock, shares outstanding (in Shares) | 120,486,061 | 120,486,061 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
INVESTMENT INCOME | |||||
Interest income from non-control/non-affiliate investments | $ 172,500 | $ 511,875 | |||
Interest income from control investments | 254,679 | 254,209 | 570,415 | 397,391 | |
Interest income paid-in-kind from control investments | 97,401 | 97,401 | |||
Other income from non-control/non-affiliate investments | 6,064 | 6,064 | 17,996 | 17,996 | |
Other income from non-investment sources | 17 | 21 | 55 | 85 | |
Total investment income | 433,260 | 357,695 | 1,100,341 | 512,873 | |
OPERATING EXPENSES | |||||
Management fees | 83,014 | 74,347 | 247,395 | 182,778 | |
Administration fees | 105,257 | 101,643 | 308,543 | 300,467 | |
Audit fees | 21,320 | 21,115 | 128,876 | 112,682 | |
Tax preparation fees | 1,570 | 13,120 | 19,487 | ||
Legal fees | 342,598 | 71,304 | 712,909 | 136,914 | |
Valuation fees | 28,500 | 33,000 | 94,500 | 99,000 | |
Directors’ fees | 38,625 | 38,625 | 115,875 | 114,375 | |
Insurance expense | 47,654 | 41,201 | 136,658 | 119,059 | |
Interest expense | 1,638 | 3,963 | 188 | ||
Other general and administrative expenses | 35,740 | 20,003 | 80,628 | 80,509 | |
Total operating expenses | 705,916 | 401,238 | 1,842,467 | 1,165,459 | |
Net investment loss before tax | (272,656) | (43,543) | (742,126) | (652,586) | |
Income tax expense | 456 | ||||
Net investment loss after taxes | (272,656) | (43,543) | (742,582) | (652,586) | |
Net change in unrealized gain (loss) on: | |||||
Non-control/non-affiliate investments | 7,295,672 | (953,012) | 11,115,782 | 1,423,650 | |
Control investments | (39,925) | (677,563) | (4,650,815) | 9,481,917 | |
Net change in unrealized gain (loss) on investments | 7,255,747 | (1,630,575) | 6,464,967 | 10,905,567 | |
Net increase (decrease) in net assets resulting from operations | [1] | $ 6,983,091 | $ (1,674,118) | $ 5,722,385 | $ 10,252,981 |
Net investment loss per share | |||||
Basic (in Dollars per share) | $ (0.002) | $ 0 | $ (0.006) | $ (0.005) | |
Diluted (in Dollars per share) | (0.002) | 0 | (0.006) | (0.005) | |
Net increase (decrease) in net assets resulting from operations per share | |||||
Basic (in Dollars per share) | [1] | 0.058 | (0.014) | 0.047 | 0.085 |
Diluted (in Dollars per share) | [1] | $ 0.058 | $ (0.014) | $ 0.047 | $ 0.085 |
Weighted average shares of common stock outstanding | |||||
Basic (in Shares) | [1],[2] | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 |
Diluted (in Shares) | [1] | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 |
[1]Per share data based on weighted average shares outstanding.[2] Financial highlights are based on weighted average shares outstanding. |
Statements of Changes in Net As
Statements of Changes in Net Assets (Unaudited) - USD ($) | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statements Of Changes In Net Assets Unaudited Abstract | ||||||
Net assets at beginning of year | $ 33,212,286 | $ 33,376,737 | $ 34,472,992 | $ 34,406,639 | $ 26,586,264 | $ 22,479,540 |
Increase/(decrease) in net assets resulting from operations: | ||||||
Net investment loss | (272,656) | (152,901) | (317,025) | (43,543) | (305,715) | (303,328) |
Net change in unrealized gain/(loss) on investments | 7,255,747 | (11,550) | (779,230) | (1,630,575) | 8,126,090 | 4,410,052 |
Net increase/(decrease) in net assets resulting from operations | 6,983,091 | (164,451) | (1,096,255) | (1,674,118) | 7,820,375 | 4,106,724 |
Total increase/(decrease) in net assets | 6,983,091 | (164,451) | (1,096,255) | (1,674,118) | 7,820,375 | 4,106,724 |
Net assets at ending of year | $ 40,195,377 | $ 33,212,286 | $ 33,376,737 | $ 32,732,521 | $ 34,406,639 | $ 26,586,264 |
Common stock | ||||||
Common stock outstanding at the beginning of period (in Shares) | 120,486,061 | 120,486,061 | 120,486,061 | |||
Common stock outstanding at the end of period (in Shares) | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Cash flows from operating activities: | |||||
Net increase in net assets resulting from operations | [1] | $ 6,983,091 | $ (1,674,118) | $ 5,722,385 | $ 10,252,981 |
Proceeds from sales, repayments, or maturity of investments in: | |||||
Portfolio investments | 230,570 | ||||
Net change in unrealized gain on investments | (6,464,967) | (10,905,567) | |||
Increase in investments due to PIK | (97,401) | ||||
Changes in operating assets and liabilities: | |||||
Due from portfolio companies | (4,144) | (33,943) | |||
Interest receivable | (206,783) | 365 | |||
Prepaid expenses | (52,403) | (45,064) | |||
Taxes receivable | 750 | 6,000 | |||
Accrued management fees | 250,411 | (102,359) | |||
Accounts payable | 161,228 | (32,460) | |||
Due to affiliates | 199,484 | ||||
Tax expense payable | (456) | ||||
Deferred fee income | (17,996) | (17,996) | |||
Accrued expenses and other liabilities | 76,237 | (26,039) | |||
Net cash used in operating activities | (335,798) | (771,369) | |||
Net decrease in cash and restricted cash | (335,798) | (771,369) | |||
Cash and restricted cash at beginning of period | 564,401 | 1,751,230 | |||
Cash and restricted cash at end of period | 228,603 | 979,861 | 228,603 | 979,861 | |
Cash and cash equivalents | 187,979 | 939,287 | 187,979 | 939,287 | |
Restricted Cash | 40,624 | 40,574 | 40,624 | 40,574 | |
Total Cash, Cash Equivalents and Restricted Cash | $ 228,603 | $ 979,861 | 228,603 | 979,861 | |
Supplemental disclosure of cash flow financing activities: | |||||
Interest expense paid | 3,963 | 188 | |||
Income tax paid | $ 456 | $ 456 | |||
[1]Per share data based on weighted average shares outstanding. |
Schedule of investments (Unaudi
Schedule of investments (Unaudited) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | ||||
Fair Value | $ 40,772,059 | $ 34,307,092 | |||
% of Net Assets | 101.43% | 99.52% | |||
Non-control/non-affiliate investments [Member] | |||||
Fair Value | [1] | $ 22,806,912 | |||
Amortized Cost | $ 18,682,876 | ||||
% of Net Assets | 56.73% | ||||
Total Portfolio Investments [Member] | |||||
Fair Value | [1] | $ 40,772,059 | |||
Amortized Cost | $ 46,036,149 | ||||
% of Net Assets | 101.43% | ||||
Total Investments [Member] | |||||
Fair Value | [1] | $ 40,772,059 | |||
Amortized Cost | $ 46,036,149 | ||||
% of Net Assets | 101.43% | ||||
Control investments [Member] | |||||
Fair Value | [1] | $ 17,965,147 | $ 22,615,962 | ||
Amortized Cost | $ 27,353,273 | $ 27,353,273 | |||
% of Net Assets | 44.70% | 65.61% | |||
Non-control/non-affiliate investments [Member] | |||||
Fair Value | [1] | $ 11,691,130 | |||
Amortized Cost | $ 18,682,876 | ||||
% of Net Assets | 33.91% | ||||
Total Portfolio Investments [Member] | |||||
Fair Value | [1] | $ 34,307,092 | |||
Amortized Cost | $ 46,036,149 | ||||
% of Net Assets | 99.52% | ||||
Total Investments [Member] | |||||
Fair Value | [1] | $ 34,307,092 | |||
Amortized Cost | $ 46,036,149 | ||||
% of Net Assets | 99.52% | ||||
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | |||||
Fair Value | [1] | $ 4,044,044 | $ 4,441,765 | ||
Amortized Cost | $ 6,331,585 | $ 6,331,585 | |||
% of Net Assets | 10.06% | 12.89% | |||
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Second Lien Loan [Member] | |||||
Fair Value | [1],[3],[4] | $ 4,044,044 | [2] | $ 4,441,765 | [5] |
Acquisition Date | [3],[4] | Mar. 13, 2015 | [2] | Mar. 13, 2015 | [5] |
Amortized Cost | [3],[4] | $ 4,500,000 | [2] | $ 4,500,000 | [5] |
Principal Amount | [3],[4] | $ 4,500,000 | [2],[6] | $ 4,500,000 | [5] |
% of Net Assets | [3],[4] | 10.06% | [2] | 12.89% | [5] |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Unsecured Loans [Member] | |||||
Fair Value | [1],[4] | ||||
Acquisition Date | [4] | Oct. 01, 2019 | Oct. 01, 2019 | ||
Amortized Cost | [4] | $ 1,381,586 | $ 1,381,586 | ||
Principal Amount | [4] | $ 1,381,586 | [6] | $ 1,381,586 | |
% of Net Assets | [4] | ||||
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Common Stock – Series A [Member] | |||||
Fair Value | [1],[4] | [2] | [5] | ||
Acquisition Date | [4] | Jul. 02, 2017 | [2] | Jul. 02, 2017 | [5] |
Amortized Cost | [4] | $ 10,150 | [2] | $ 10,150 | [5] |
% of Net Assets | [4] | [2] | [5] | ||
Number of Shares (in Shares) | [4] | 225,000 | [2],[6],[7] | 225,000 | [5] |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Common Stock – Series B [Member] | |||||
Fair Value | [1],[4] | [2] | [5] | ||
Acquisition Date | [4] | Jul. 02, 2017 | [2] | Jul. 02, 2017 | [5] |
Amortized Cost | [4] | $ 428,571 | [2] | $ 428,571 | [5] |
% of Net Assets | [4] | [2] | [5] | ||
Number of Shares (in Shares) | [4] | 9,500,000 | [2],[6],[7] | 9,500,000 | [5] |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Warrant [Member] | |||||
Fair Value | [1],[4] | [2] | [5] | ||
Acquisition Date | [4] | Jul. 02, 2017 | [2] | Jul. 02, 2017 | [5] |
Amortized Cost | [4] | $ 11,278 | [2] | $ 11,278 | [5] |
% of Net Assets | [4] | [2] | [5] | ||
Number of Shares (in Shares) | [4] | 1 | [2],[6],[7] | 1 | [5] |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Warrant One [Member] | |||||
Fair Value | [1],[4] | [2] | [5] | ||
Acquisition Date | [4] | Dec. 31, 2016 | [2] | Dec. 31, 2016 | [5] |
Amortized Cost | [4] | [2] | [5] | ||
% of Net Assets | [4] | [2] | [5] | ||
Number of Shares (in Shares) | [4] | 1 | [2],[6],[7] | 1 | [5] |
Dominion Medical Management, Inc. [Member] | Control investments [Member] | Second Lien Loan [Member] | |||||
Fair Value | [1],[3],[4],[5],[8] | $ 158,159 | |||
Acquisition Date | [3],[4],[5],[8] | Mar. 22, 2018 | |||
Amortized Cost | [3],[4],[5],[8] | $ 1,516,144 | |||
Principal Amount | [3],[4],[5],[8] | $ 1,516,144 | |||
% of Net Assets | [3],[4],[5],[8] | 0.46% | |||
Dominion Medical Management, Inc. [Member] | Control investments [Member] | First Lien Loans [Member] | |||||
Fair Value | $ 206,813 | ||||
Acquisition Date | Mar. 22, 2018 | ||||
Amortized Cost | $ 1,516,144 | ||||
Principal Amount | [6],[7],[9] | $ 1,516,144 | |||
% of Net Assets | 0.52% | ||||
Integrated Medical Partners, LLC [Member] | Control investments [Member] | |||||
Fair Value | [1] | $ 206,813 | $ 158,159 | ||
Amortized Cost | $ 5,742,667 | $ 5,742,667 | |||
% of Net Assets | 0.52% | 0.46% | |||
Integrated Medical Partners, LLC [Member] | Control investments [Member] | Preferred Membership, Class A units [Member] | |||||
Fair Value | [1],[4] | [2] | [5] | ||
Acquisition Date | [4] | Mar. 13, 2015 | [2] | Mar. 13, 2015 | [5] |
Amortized Cost | [4] | $ 4,196,937 | [2] | $ 4,196,937 | [5] |
% of Net Assets | [4] | [2] | [5] | ||
Number of Shares (in Shares) | [4] | 800 | [2],[6],[7] | 800 | [5] |
Integrated Medical Partners, LLC [Member] | Control investments [Member] | Preferred Membership, Class B units [Member] | |||||
Fair Value | [1],[4] | [2] | [5] | ||
Acquisition Date | [4] | Mar. 13, 2015 | [2] | Mar. 13, 2015 | [5] |
Amortized Cost | [4] | $ 29,586 | [2] | $ 29,586 | [5] |
% of Net Assets | [4] | [2] | [5] | ||
Number of Shares (in Shares) | [4] | 760 | [2],[6],[7] | 760 | [5] |
Integrated Medical Partners, LLC [Member] | Control investments [Member] | Common Units [Member] | |||||
Fair Value | [1],[2],[4] | ||||
Acquisition Date | [2],[4] | Mar. 13, 2015 | Mar. 13, 2015 | ||
Amortized Cost | [2],[4] | ||||
% of Net Assets | [2],[4] | ||||
Number of Shares (in Shares) | [2],[4] | 14,082 | [6],[7] | 14,082 | |
PCC SBH Sub, Inc. [Member] | Control investments [Member] | Common Stock [Member] | |||||
Fair Value | [1],[2],[4] | $ 1,726,047 | $ 1,745,113 | ||
Acquisition Date | [2],[4] | Feb. 06, 2017 | Feb. 06, 2017 | ||
Amortized Cost | [2],[4] | $ 2,525,481 | $ 2,525,481 | ||
% of Net Assets | [2],[4] | 4.29% | 5.06% | ||
Number of Shares (in Shares) | [2],[4] | 100 | [6],[7] | 100 | |
Rockfish Seafood Grill, Inc. [Member] | Control investments [Member] | First Lien Loans [Member] | |||||
Fair Value | [1],[4],[8] | $ 9,737,243 | $ 12,294,480 | [3],[5] | |
Acquisition Date | [4],[8] | Mar. 13, 2015 | Mar. 13, 2015 | [3],[5] | |
Amortized Cost | [4],[8] | $ 6,352,944 | $ 6,352,944 | [3],[5] | |
Principal Amount | [4],[8] | $ 6,352,944 | [6] | $ 6,352,944 | [3],[5] |
% of Net Assets | [4],[8] | 24.23% | 35.66% | [3],[5] | |
Rockfish Seafood Grill, Inc. [Member] | Control investments [Member] | Revolving Loan [Member] | |||||
Fair Value | [1],[4] | $ 2,251,000 | $ 2,251,000 | ||
Acquisition Date | [4] | Jun. 29, 2015 | Jun. 29, 2015 | ||
Amortized Cost | [4] | $ 2,251,000 | $ 2,251,000 | ||
Principal Amount | [4] | $ 2,251,000 | [6] | $ 2,251,000 | |
% of Net Assets | [4] | 5.60% | 6.53% | ||
Rockfish Holdings, LLC [Member] | Control investments [Member] | |||||
Fair Value | [1] | $ 16,270,925 | |||
Amortized Cost | $ 4,149,596 | $ 12,753,540 | |||
% of Net Assets | 47.20% | ||||
Rockfish Holdings, LLC [Member] | Control investments [Member] | Warrant for Membership Interest [Member] | |||||
Fair Value | [1],[4] | [2] | $ 172,549 | [5] | |
Acquisition Date | [4] | Mar. 13, 2015 | [2] | Mar. 13, 2015 | [5] |
Amortized Cost | [4] | $ 414,960 | [2] | $ 414,960 | [5] |
% of Net Assets | [4] | [2] | 0.50% | [5] | |
Percentage of Ownership | [4] | 10% | [2] | 10% | [5] |
Rockfish Holdings, LLC [Member] | Control investments [Member] | Membership Interest – Class A [Member] | |||||
Fair Value | [1],[4] | [2] | $ 1,552,896 | [5] | |
Acquisition Date | [4] | Mar. 13, 2015 | [2] | Mar. 13, 2015 | [5] |
Amortized Cost | [4] | $ 3,734,636 | [2] | $ 3,734,636 | [5] |
% of Net Assets | [4] | [2] | 4.51% | [5] | |
Percentage of Ownership | [4] | 99.997% | [2] | 99.997% | [5] |
Great Value Storage, LLC [Member] | Non-control/non-affiliate investments [Member] | First Lien Loans [Member] | |||||
Fair Value | [1],[3],[4],[8] | $ 11,372,699 | [2],[10] | $ 4,854,720 | [5],[11] |
Acquisition Date | [3],[4],[8] | Mar. 13, 2015 | [2],[10] | Mar. 13, 2015 | [5],[11] |
Amortized Cost | [3],[4],[8] | $ 6,800,586 | [2],[10] | $ 6,800,586 | [5],[11] |
Principal Amount | [3],[4],[8] | $ 6,800,586 | [2],[10] | $ 6,800,586 | [5],[11] |
% of Net Assets | [3],[4],[8] | 28.29% | [2],[10] | 14.08% | [5],[11] |
Performance Alloys, LLC [Member] | Non-control/non-affiliate investments [Member] | |||||
Fair Value | [1] | $ 11,433,013 | $ 6,835,210 | ||
Amortized Cost | $ 11,881,090 | $ 11,881,090 | |||
% of Net Assets | 28.44% | 19.83% | |||
Performance Alloys, LLC [Member] | Non-control/non-affiliate investments [Member] | Second Lien Loan [Member] | |||||
Fair Value | [1],[4] | $ 7,320,000 | $ 6,835,210 | ||
Acquisition Date | [4] | Jul. 01, 2016 | Jul. 01, 2016 | ||
Amortized Cost | [4] | $ 6,750,000 | $ 6,750,000 | ||
Principal Amount | [4] | $ 6,750,000 | $ 6,750,000 | ||
% of Net Assets | [4] | 18.21% | 19.83% | ||
Performance Alloys, LLC [Member] | Non-control/non-affiliate investments [Member] | Membership Interest – Class B [Member] | |||||
Fair Value | [1],[4] | $ 4,113,013 | [2] | [5] | |
Acquisition Date | [4] | Jul. 01, 2016 | [2] | Jul. 01, 2016 | [5] |
Amortized Cost | [4] | $ 5,131,090 | [2] | $ 5,131,090 | [5] |
% of Net Assets | [4] | 10.23% | [2] | [5] | |
Percentage of Ownership | [4] | 25.97% | [2] | 25.97% | [5] |
Rampart Detection Systems, Ltd. [Member] | Non-control/non-affiliate investments [Member] | Common Stock Shares [Member] | |||||
Fair Value | [1],[12] | $ 1,200 | [2] | $ 1,200 | [5] |
Acquisition Date | [12] | Mar. 13, 2015 | [2] | Mar. 13, 2015 | [5] |
Amortized Cost | [12] | $ 1,200 | [2] | $ 1,200 | [5] |
% of Net Assets | [12] | [2] | [5] | ||
Number of Shares (in Shares) | [12] | 600,000 | [2] | 600,000 | [5] |
[1]See Note 5 of the Notes to Financial Statements for a discussion of the methodologies used to value securities in the portfolio.[2]Investment is non-income producing as of September 30, 2022.[3]Investment is on non-accrual status.[4]Represents an investment valued using significant unobservable inputs.[5]Investment is non-income producing as of December 31, 2021.[6]Represents an illiquid investment.[7]Non-income producing security.[8]Represents a security with a payment-in-kind component (“PIK”). At the option of the issuer, interest can be paid in cash or cash and PIK. The percentage of PIK shown is the maximum PIK that can be elected by the portfolio company.[9]Includes PIK interest.[10]On March 14, 2019, the Company filed a lawsuit against Great Value Storage, LLC due to a breach of contract. On September 2, 2022, the Company entered into a Settlement, Assignment and Acceptance Agreement and subsequent to quarter end was paid in full on October 7, 2022. See Note 8 of the Notes to Financial Statements.[11]On March 14, 2019, the Company filed a lawsuit against Great Value Storage, LLC due to a breach of contract. See Note 8 of the Notes to Financial Statements. The Company has not received financial statements since August 2018.[12]The investment in Rampart Detection Systems, Ltd does not represent a “qualifying asset” under Section 55(a) of the 1940 Act as the principal place of business is in British Columbia, Canada. As of September 30, 2022, less than 1% of the total fair value of investments represents non-qualifying assets. |
Schedule of investments (Unau_2
Schedule of investments (Unaudited) (Parentheticals) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Second Lien Loan [Member] | ||
Investment cash rate | 12% | 12% |
Investment maturity date | Nov. 30, 2021 | Nov. 30, 2021 |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Unsecured Loans [Member] | ||
Investment cash rate | 6.33% | 6.33% |
Investment maturity date | Dec. 31, 2022 | Dec. 31, 2022 |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Warrant [Member] | ||
Investment maturity date | Jan. 01, 2027 | Jan. 01, 2027 |
Investment warrant (in Shares) | 250,000 | 250,000 |
Investment exercise price (in Dollars) | $ 0.01 | $ 0.01 |
Advantis Certified Staffing Solutions, Inc. [Member] | Control investments [Member] | Warrant One [Member] | ||
Investment maturity date | Jan. 01, 2027 | Jan. 01, 2027 |
Investment warrant (in Shares) | 700,000 | 700,000 |
Investment exercise price (in Dollars) | $ 0.01 | $ 0.01 |
Dominion Medical Management, Inc. [Member] | Control investments [Member] | Second Lien Loan [Member] | ||
Investment cash rate | 12% | |
Investment maturity date | Mar. 31, 2020 | |
Investment payment in kind rate | 6% | |
Dominion Medical Management, Inc. [Member] | Control investments [Member] | First Lien Loans [Member] | ||
Investment cash rate | 12% | |
Investment maturity date | Mar. 31, 2020 | |
Investment payment in kind rate | 6% | |
Rockfish Seafood Grill, Inc. [Member] | Control investments [Member] | First Lien Loans [Member] | ||
Investment cash rate | 8% | 8% |
Investment maturity date | Mar. 31, 2018 | Mar. 31, 2018 |
Investment payment in kind rate | 6% | 6% |
Rockfish Seafood Grill, Inc. [Member] | Control investments [Member] | Revolving Loan [Member] | ||
Investment cash rate | 8% | 8% |
Investment maturity date | Dec. 31, 2022 | Dec. 31, 2022 |
Rockfish Holdings, LLC [Member] | Control investments [Member] | Warrant for Membership Interest [Member] | ||
Investment maturity date | Jul. 28, 2028 | Jul. 28, 2028 |
Investment exercise price (in Dollars) | $ 0.001 | $ 0.001 |
Investment membership interest rate | 1% | 1% |
Great Value Storage, LLC [Member] | Non-control/non-affiliate investments [Member] | First Lien Loans [Member] | ||
Investment cash rate | 12% | 12% |
Investment maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
Investment payment in kind rate | 2% | 2% |
Performance Alloys, LLC [Member] | Non-control/non-affiliate investments [Member] | Second Lien Loan [Member] | ||
Investment cash rate | 10% | 10% |
Investment maturity date | Dec. 31, 2023 | Dec. 31, 2023 |
Schedule of Fair Value of Our P
Schedule of Fair Value of Our Portfolio of Investments (Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Percentage of Net Assets | 101.43% | 99.52% |
Investments at Fair Value | $ 40,772,059 | $ 34,307,092 |
Casual Dining [Member] | ||
Percentage of Net Assets | 29.83% | 47.20% |
Investments at Fair Value | $ 11,988,243 | $ 16,270,925 |
Nickel Pipe, Fittings and Flanges [Member] | ||
Percentage of Net Assets | 28.44% | 19.83% |
Investments at Fair Value | $ 11,433,013 | $ 6,835,210 |
Storage Company Property Management [Member] | ||
Percentage of Net Assets | 28.29% | 14.08% |
Investments at Fair Value | $ 11,372,699 | $ 4,854,720 |
Staffing [Member] | ||
Percentage of Net Assets | 10.06% | 12.89% |
Investments at Fair Value | $ 4,044,044 | $ 4,441,765 |
Energy Services [Member] | ||
Percentage of Net Assets | 4.29% | 5.06% |
Investments at Fair Value | $ 1,726,047 | $ 1,745,113 |
Medical Business Services [Member] | ||
Percentage of Net Assets | 0.52% | 0.46% |
Investments at Fair Value | $ 206,813 | $ 158,159 |
Security [Member] | ||
Percentage of Net Assets | ||
Investments at Fair Value | $ 1,200 | $ 1,200 |
Industry [Member] | ||
Percentage of Net Assets | 101.43% | 99.52% |
Investments at Fair Value | $ 40,772,059 | $ 34,307,092 |
United States [Member] | ||
Percentage of Net Assets | 101.43% | 99.52% |
Investments at Fair Value | $ 40,770,859 | $ 34,305,892 |
Canada [Member] | ||
Percentage of Net Assets | 0% | |
Investments at Fair Value | $ 1,200 | $ 1,200 |
N-2
N-2 | 9 Months Ended |
Sep. 30, 2022 | |
Cover [Abstract] | |
Entity Central Index Key | 0000845385 |
Amendment Flag | false |
Securities Act File Number | 814-00710 |
Document Type | 10-Q |
Entity Registrant Name | PRINCETON CAPITAL CORP |
Entity Address, Address Line One | 800 Turnpike Street |
Entity Address, Address Line Two | Suite 300 |
Entity Address, City or Town | North Andover |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 01845 |
City Area Code | (978) |
Local Phone Number | 794-3366 |
Entity Emerging Growth Company | false |
General Description of Registrant [Abstract] | |
Risk Factors [Table Text Block] | Item 1A. Risk Factors In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 – NATURE OF OPERATIONS References herein to “we”, “us” or “our” refer to Princeton Capital Corporation (the “Company” or “Princeton Capital”), unless the context specifically requires otherwise. Princeton Capital Corporation, a Maryland corporation, was incorporated under the general laws of the State of Maryland on July 25, 2013. We are a non-diversified, closed-end investment company that has filed an election to be regulated as a business development company (“BDC”), under the Investment Company Act of 1940, as amended (the “1940 Act”). A goal of a BDC is to annually qualify and elect to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company, however, did not meet the requirements to qualify as a RIC for the 2021 tax year and will be taxed as a corporation under Subchapter C of the Code and does not expect to meet the qualifications of a RIC until such time as certain strategic alternatives are achieved. While we have sought to invest primarily in private small and lower middle-market companies in various industries through first lien loans, second lien loans, unsecured loans, unitranche and mezzanine debt financing, often times with a corresponding equity investment, we are now (with a strategic alternatives process underway and limited resources) investing only in current investments and otherwise conserving cash. Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. Prior to March 13, 2015, Princeton Capital’s predecessor operated under the name Regal One Corporation (“Regal One”). Regal One had been located in Scottsdale, Arizona, and was a Florida corporation initially incorporated in 1959 as Electro-Mechanical Services Inc. Since inception, Regal One had been involved in several industries. In 1998, Electro-Mechanical Services Inc. changed its name to Regal One Corporation. On March 7, 2005, Regal One’s board of directors determined it was in the shareholders’ best interest to change the focus of its operations to providing financial consulting services through its network of advisors and professionals, and to be regulated as a BDC under the 1940 Act. On September 16, 2005, Regal One filed a Form N54A (Notification of Election by Business Development Companies) with the Securities and Exchange Commission (“SEC”), which transformed Regal One into a BDC in accordance with sections 55 through 65 of the 1940 Act. Regal One reported as an operating BDC from March 31, 2006 until March 13, 2015 and since March 13, 2015 (following Regal One’s reincorporation from Florida to Maryland by merging with and into the Company with the Company continuing as the surviving corporation) Princeton Capital has reported as an operating BDC. On December 27, 2017, the Board approved (specifically in accordance with Rule 15a-4(b)(1)(ii) of the Investment Company Act) and authorized the Company to enter into an Interim Investment Advisory Agreement between the Company and House Hanover, LLC, a Delaware limited liability company (“House Hanover”) (the “Interim Investment Advisory Agreement”), in accordance with Rule 15a-4 of the Investment Company Act. The effective date of the Interim Investment Advisory Agreement was January 1, 2018. On April 5, 2018, the Board, including a majority of the independent directors, conditionally approved the Investment Advisory Agreement between the Company and House Hanover (the “House Hanover Investment Advisory Agreement”) subject to the approval of the Company’s stockholders at the 2018 Annual Meeting of Stockholders. The House Hanover Investment Advisory Agreement replaced the Interim Investment Advisory Agreement. On May 30, 2018, the Company’s stockholders approved the House Hanover Investment Advisory Agreement. The effective date of the House Hanover Investment Advisory Agreement was May 31, 2018. The House Hanover Investment Advisory Agreement was last annually renewed by the Board and by a majority of the members of the Board who are not parties to the House Hanover Investment Advisory Agreement or “interested persons” (as such term is defined in the 1940 Act) of any such party, in accordance with the requirements of the 1940 Act and the House Hanover Investment Advisory Agreement on May 9, 2022. Since January 1, 2018, House Hanover has acted as our investment advisor under the Interim Investment Advisory Agreement (from January 1, 2018 until May 31, 2018) and the House Hanover Investment Advisory Agreement (since May 31, 2018). On November 15, 2019, our Board announced that the Company has initiated a strategic review process to identify, examine, and consider a range of strategic alternatives available to the Company, including but not limited to, (i) selling the Company’s assets to a business development company or other potential buyer, (ii) merging with another business development company, (iii) liquidating the Company’s assets in accordance with a plan of liquidation, (iv) raising additional funds for the Company, or (v) otherwise entering into another business combination, with the objective of maximizing stockholder value. On August 19, 2021, the Company provided an update with respect to our strategic review process and reported that the process was ongoing and that our options had been enhanced by significant valuation growth in our portfolio. As of September 30, 2022 and through the date of filing this Quarterly Report, the Company has not entered into any agreements regarding any strategic alternative and the strategic process remains ongoing. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, (“U.S. GAAP”). In accordance with Regulation S-X under the Securities Act of 1933 and Securities Exchange Act of 1934, the Company does not consolidate portfolio company investments. The accounting records of the Company are maintained in U.S. dollars. As an investment company, as defined by the 1940 Act, the Company follows investment company accounting and reporting guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – “Financial Services - Investment Companies”, which is U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. The reported amounts for the nine months ended September 30, 2022 may not be indicative of the results ultimately achieved for the year ended December 31, 2022 which will be presented in the Company’s annual report on form 10-K. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Changes in the economic environment, financial markets, creditworthiness of our portfolio companies and any other parameters used in determining these estimates could cause actual results to differ. It is likely that changes in these estimates will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ materially from such estimates. Portfolio Investment Classification The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation. Under the 1940 Act, “Affiliated Investments” are defined as those non-control investments in companies in which the Company owns between 5% and 25% of the voting securities. Under the 1940 Act, “Non-affiliated Investments” are defined as investments that are neither Control Investments nor Affiliated Investments. As of September 30, 2022, the Company had control investments in Advantis Certified Staffing Solutions, Inc., PCC SBH Sub, Inc., Rockfish Holdings, LLC, Rockfish Seafood Grill, Inc., Integrated Medical Partners, LLC and Dominion Medical Management, Inc. as defined under the 1940 Act. As of December 31, 2021, the Company had control investments in Advantis Certified Staffing Solutions, Inc., PCC SBH Sub, Inc., Rockfish Holdings, LLC, Rockfish Seafood Grill, Inc., Integrated Medical Partners, LLC and Dominion Medical Management, Inc. as defined under the 1940 Act. Investments are recognized when we assume an obligation to acquire a financial instrument and assume the risks for gains or losses related to that instrument. Investments are derecognized when we assume an obligation to sell a financial instrument and forgo the risks for gains and losses related to that instrument. Specifically, we record all security transactions on a trade date basis. Investments in other non-security financial instruments, such as limited partnerships or private companies, are recorded on the basis of subscription date or redemption date, as applicable. Amounts for investments recognized or derecognized but not yet settled are reported as receivables for investments sold or payable for investments acquired, respectively, in the Statements of Assets and Liabilities. Valuation of Investments In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, our board of directors uses various valuation approaches. In accordance with U.S. GAAP, ASC 820 establishes a fair value hierarchy for inputs and is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the board of directors. Unobservable inputs reflect our board of director’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. With respect to investments for which market quotations are not readily available, our board of directors undertakes a multi-step valuation process each quarter, as described below: ● Our quarterly valuation process begins with each portfolio company or investment being initially valued by an independent valuation firm unless an internal valuation process is used, except for those investments where market quotations are readily available; ● Preliminary valuation conclusions are then documented and discussed with our senior management and our investment advisor; ● The valuation committee of our board of directors then reviews these preliminary valuations and approves them for recommendation to the board of directors; ● The board of directors then discusses valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our investment advisor, the independent valuation firm and the valuation committee. U.S. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. Level 2 — Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including, the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the board of directors in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. For the fair value measurements as of September 30, 2022, the valuation technique for the Company's investment in a First Lien Loan changed to remove the Receiver Recovery, Bankruptcy Recovery and Zero Recovery techniques. The reason for the change was that the Company entered into a settlement agreement prior to the end of the quarter and received funds within a week subsequent to quarter end. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. Valuation Processes The Company establishes valuation processes and procedures to ensure that the valuation techniques for investments that are categorized within Level 3 of the fair value hierarchy are fair, consistent, and verifiable. The Company’s board of directors designates a Valuation Committee (the “Committee”) to oversee the entire valuation process of the Company’s Level 3 investments. The Committee is comprised of independent directors and reports to the Company’s board of directors. The Committee is responsible for developing the Company’s written valuation processes and procedures, conducting periodic reviews of the valuation policies, and evaluating the overall fairness and consistent application of the valuation policies. The Committee meets on a quarterly basis, or more frequently as needed, to determine the valuations of the Company’s Level 3 investments. Valuations determined by the Committee are required to be supported by market data, third-party pricing sources, industry accepted pricing models, counterparty prices, or other methods that the Committee deems to be appropriate. The Company will periodically test its valuations of Level 3 investments through performing back testing of the sales of such investments by comparing the amounts realized against the most recent fair values reported, and if necessary, uses the findings to recalibrate its valuation procedures. On a quarterly basis and unless an internal valuation process is used, the Company engages the services of a nationally recognized third-party valuation firm to perform an independent valuation of the Company’s Level 3 investments. This valuation firm provides a range of values for selected investments, which is presented to the Valuation Committee to determine the value for each of the selected investments. Investment Valuation We expect that most of our portfolio investments will take the form of securities that are not publicly traded. The fair value of loans, securities and other investments that are not publicly traded may not be readily determinable, and we will value these investments at fair value as determined in good faith by our board of directors, including reflecting significant events affecting the value of our investments. Most, if not all, of our investments (other than cash and cash equivalents) will be classified as Level 3 under FASB, or ASC 820 “Fair Value Measurements and Disclosures”. This means that our portfolio valuations will be based on unobservable inputs and our own assumptions about how market participants would price the asset or liability in question. We expect that inputs into the determination of fair value of our portfolio investments will require significant management judgment or estimation. Even if observable market data are available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimers materially reduces the reliability of such information. We expect to retain the services of one or more independent service providers to review the valuation of these loans and securities. The types of factors that the board of directors may take into account in determining the fair value of our investments generally include, as appropriate, comparison to publicly traded securities including such factors as yield, maturity and measures of credit quality, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these loans and securities existed. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such loans and securities. We will adjust the valuation of our portfolio quarterly to reflect our board of directors’ determination of the fair value of each investment in our portfolio. Any changes in fair value are recorded in our Statement of Operations as net change in unrealized gain or loss on investments. Debt Securities The Company’s portfolio consists primarily of first lien loans, second lien loans, and unsecured loans. Investments for which market quotations are readily available (“Level 2 Loans”) are generally valued using market quotations, which are generally obtained from an independent pricing service or broker-dealers. For other debt investments (“Level 3 Loans”), market quotations are not available and other techniques are used to determine fair value. The Company considers its Level 3 Loans to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner, the loan is in covenant compliance or is otherwise not deemed to be impaired. In determining the fair value of the performing Level 3 Loans, the Board considers fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions, success and prepayment fees, and other relevant factors, both qualitative and quantitative. In the event that a Level 3 Loan instrument is not performing, as defined above, the Board may evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the Level 3 Loan instrument. Equity Investments Our equity investments, including common stock, membership interests, and warrants, are generally valued using a market approach and income approach. The income approach utilizes primarily the discount rate to value the investment whereas the primary inputs for the market approach are the earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiple and revenue multiples. The Black-Scholes Option Pricing Model, a valuation technique that follows the income approach, is used to allocate the value of the equity to the investment. The pricing model takes into account the contract terms (including maturity) as well as multiple inputs, including time value, implied volatility, equity prices, risk free rates, and interest rates. Valuation of Other Financial Instruments The carrying amounts of the Company’s other, non-investment, financial instruments, consisting of cash, receivables, accounts payable, and accrued expenses, approximate fair value due to their short-term nature. Cash, Cash Equivalents and Restricted Cash The Company deposits its cash and restricted cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insured limit; however, management does not believe it is exposed to any significant credit risk. Cash Equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and present insignificant risk of changes in value. The following table provides a reconciliation of cash and restricted cash reporting within the Statements of Assets and Liabilities that sum to the total of the same such amounts shown in the Statements of Cash Flows: September 30, December 31, 2022 2021 Cash and Cash Equivalents $ 187,979 $ 523,815 Restricted Cash 40,624 40,586 Total Cash, Cash Equivalents and Restricted Cash $ 228,603 $ 564,401 As of September 30, 2022 and December 31, 2021, restricted cash consisted of cash held for deposit with law firms that represents the Company in its litigation with Great Value Storage, LLC. U.S. Treasury Bills At the end of each fiscal quarter, we may take proactive steps to be in compliance with the RIC diversification requirements under Subchapter M of the Code, which are dependent upon the composition of our total assets at quarter end. We may accomplish this in several ways, including purchasing U.S. Treasury Bills and closing out positions after quarter-end. As of September 30, 2022 and December 31, 2021, the Company did not purchase any U.S. Treasury Bills. The Company does not expect to meet the qualifications of a RIC nor anticipate buying U.S. Treasury Bills until such time as certain strategic alternatives are achieved. Revenue Recognition Realized gains or losses on the sale of investments are calculated using the specific identification method. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Origination, closing and/or commitment fees associated with senior and subordinated secured loans are accreted into interest income over the respective terms of the applicable loans. Upon the prepayment of a senior or subordinated secured loan, any prepayment penalties and unamortized loan origination, closing and commitment fees are recorded as interest income. Generally, when a payment default occurs on a loan in the portfolio, or if the Company otherwise believes that the borrower will not be able to make contractual interest payments, the Company may place the loan on non-accrual status and cease recognizing interest income on the loan until all principal and interest is current through payment, or until a restructuring occurs, and the interest income is deemed to be collectible. The Company may make exceptions to this policy if a loan has sufficient collateral value, is in the process of collection or is viewed to be able to pay all amounts due if the loan were to be collected on through an investment in or sale of the business, the sale of the assets of the business, or some portion or combination thereof. Dividend income is recorded on the ex-dividend date. Structuring fees, excess deal deposits, prepayment fees and similar fees are recognized as income as earned, usually when paid. Other fee income from investment sources, includes loan fees, annual fees and monitoring fees from our portfolio investments and are included in other income from non-control/non-affiliate investments and other income from affiliate investments. Income from such sources was $6,064 and $6,064 for the three months ended September 30, 2022, and 2021, respectively. Income from such sources was $17,996 and $17,996 for the nine months ended September 30, 2022, and 2021, respectively. Other income from non-investment sources is generally comprised of interest income earned on cash in the Company’s bank account. Income from such sources was $17 and $21 for the three months ended September 30, 2022 and 2021, respectively. Income from such sources was $55 and $85 for the nine months ended September 30, 2022 and 2021, respectively Net Change in Unrealized Gain or Loss Net change in unrealized gain or loss will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. Legal Fees Legal fees invoiced to the Company for the three and nine months ended September 30, 2022 and 2021, were incurred in the normal operating course of business and are included in legal fees on the Statement of Operations. The Company incurred legal fees related to the lawsuit against Great Value Storage, LLC (“GVS”). The amounts invoiced to the Company, prior to the final judgment received on March 4, 2021, for the nine months ended September 30, 2022 and 2021 were $0 and $14,423. These amounts are recoverable per the loan agreements and were invoiced to GVS and included in the amount Due from portfolio companies on the Statements of Assets and Liabilities. The amounts invoiced to the Company, after the final judgment received on March 4, 2021, for the nine months ended September 30, 2022 and 2021 were $485,370 and $35,003, respectively. These amounts are for fees incurred to recover our judgment and were expensed to Legal fees on the Statements of Operations. Federal and State Income Taxes The Company uses the liability method of accounting for income taxes. Deferred tax assets and liabilities are recorded for tax loss carryforwards and temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company did not meet the qualifications of a RIC for the 2021 tax year and was taxed as a corporation under Subchapter C of the Internal Revenue Code of 1986 (the “Code”). The failure to qualify as a RIC, however, did not impact the 2021 tax year as the Company had net operating losses and no realized gains in the tax year. Further, the Company has net operating losses and capital losses from prior years it can carry forward to offset taxable income. The Company does not expect to meet the qualifications of a RIC for the 2022 tax year and is likely to be taxed as a corporation under Subchapter C of the Code. However, in the event that the Company does meet the qualifications of a RIC for the 2022 tax year, it may not be in the best interests of the Company’s stockholders to elect to be taxed as a RIC for the 2022 tax year due to the net operating losses and capital loss carryforwards the Company currently has. Management will make a determination that is in the best interests of the Company and its stockholders. In order to qualify as a RIC, among other things, the Company is required to distribute to its stockholders on a timely basis at least 90% of investment company taxable income, as defined by the Code, for each year. If the Company achieves its status as a RIC, it generally will not pay corporate-level U.S. federal and state income taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. Rather, any tax liability related to income earned by the Company will represent obligations of the Company’s investors and will not be reflected in the financial statements of the Company. The Company evaluates tax positions taken or expected to be taken while preparing its financial statements to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. The Company recognizes the tax benefits of uncertain tax positions only where the position has met the “more-likely-than-not” threshold. The Company classifies penalties and interest associated with income taxes, if any, as income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analyses of tax laws, regulations and interpretations thereof. Dividends and Distributions Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount, if any, to be paid as a dividend is approved by our board of directors each quarter and is generally based upon our management’s estimate of our earnings for the quarter. For the three and nine months ended September 30, 2022 and 2021, no dividends have been declared or distributed to stockholders. As disclosed in the Company’s Form 8-K that was filed on October 27, 2022, the Board of Directors has authorized and declared a cash dividend of $0.075 per share of common stock payable on December 1, 2022 to stockholders of record as of the close of business on November 21, 2022. Per Share Information Basic and diluted earnings (loss) per common share is calculated using the weighted average number of common shares outstanding for the period presented. Basic earnings (loss) per share is computed by dividing earnings (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net earnings (loss) per share is computed by dividing net earnings (loss) per share by the weighted average number of shares outstanding, plus, any potentially dilutive shares outstanding during the period. For the three and nine months ended September 30, 2022 and 2021, basic and diluted earnings (loss) per share were the same, since there were no potentially dilutive securities outstanding. Capital Accounts Certain capital accounts including undistributed net investment income, accumulated net realized gain or loss, accumulated net unrealized gain or loss, and paid-in capital in excess of par, are adjusted, at least annually, for permanent differences between book and tax. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP. Recent Accounting Pronouncements In May 2020, the SEC adopted rule amendments that will impact the requirements of investment companies, including BDCs, to disclose the financial statements of certain of their portfolio companies or certain acquired funds (the “Final Rules”). The Final Rules adopted a new definition of “significant subsidiary” set forth in Rule 1-02(w)(2) of Regulation S-X under the Securities Act. Rules 3-09 and 4-08(g) of Regulation S-X require investment companies to include separate financial statements or summary financial information, respectively, in such investment company’s periodic reports for any portfolio company that meets the definition of “significant subsidiary.” The Final Rules adopt a new definition of “significant subsidiary” applicable only to investment companies that (i) modifies the investment test and the income test, and (ii) eliminates the asset test currently in the definition of “significant subsidiary” in Rule 1-02(w) of Regulation S-X. The new Rule 1-02(w)(2) of Regulation S-X is intended to more accurately capture those portfolio companies that are more likely to materially impact the financial condition of an investment company. The Final Rules were effective on January 1, 2021. The adoption resulted in no change to the Company’s disclosures of unconsolidated significant subsidiaries. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 3 – CONCENTRATION OF CREDIT RISK In the normal course of business, the Company maintains its cash balances in financial institutions, which at times may exceed federally insured limits. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf. Management monitors the financial condition of such financial institutions and does not anticipate any losses from these counterparties. |
Net Increase (Decrease) in Net
Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE | NOTE 4 – NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE The following information sets forth the computation of basic and diluted net increase (decrease) in net assets resulting from operations per common share for the three months ended September 30, 2022 and September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021. Three Months Ended Nine months Ended 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Per Share Data (1) Net increase (decrease) in net assets resulting from operations $ 6,983,091 $ (1,674,118 ) $ 5,722,385 $ 10,252,981 Weighted average shares outstanding for period Basic 120,486,061 120,486,061 120,486,061 120,486,061 Diluted 120,486,061 120,486,061 120,486,061 120,486,061 Basic and diluted net increase (decrease) in net assets resulting from operations per common share Basic $ 0.058 $ (0.014 ) $ 0.047 $ 0.085 Diluted $ 0.058 $ (0.014 ) $ 0.047 $ 0.085 (1) Per share data based on weighted average shares outstanding. |
Fair Value of Investments
Fair Value of Investments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value of Investments [Abstract] | |
FAIR VALUE OF INVESTMENTS | NOTE 5 – FAIR VALUE OF INVESTMENTS The Company’s assets recorded at fair value have been categorized based upon a fair value hierarchy in accordance with ASC Topic 820 – “Fair Value Measurements and Disclosures” (“ASC 820”). See Note 2 for a discussion of the Company’s policies. The following table presents information about the Company’s assets measured at fair value as of September 30, 2022 and December 31, 2021, respectively: As of September 30, 2022 Level 1 Level 2 Level 3 Total Portfolio Investments First Lien Loans $ - $ - $ 23,567,755 $ 23,567,755 Second Lien Loans - - 11,364,044 11,364,044 Equity - - 5,840,260 5,840,260 Total Portfolio Investments - - 40,772,059 40,772,059 Total Investments $ $ - $ 40,772,059 $ 40,772,059 As of December 31, 2021 Level 1 Level 2 Level 3 Total Portfolio Investments First Lien Loans $ - $ - $ 19,400,200 $ 19,400,200 Second Lien Loans - - 11,435,134 11,435,134 Equity - - 3,471,758 3,471,758 Total Portfolio Investments - - 34,307,092 34,307,092 Total Investments $ $ - $ 34,307,092 $ 34,307,092 During the nine months ended September 30, 2022 and the year ended December 31, 2021, there were no transfers between Level 1, Level 2 or Level 3. During the nine months ended September 30, 2022, the company’s investment in Dominion Medical Management, Inc. changed from a second lien loan to a first lien loan. The following table presents additional information about Level 3 assets measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for assets within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. Changes in Level 3 assets measured at fair value for the nine months ended September 30, 2022 are as follows: First Lien Loans Second Lien Loans Unsecured Loans Equity Total Fair value at beginning of period $ 19,400,200 $ 11,435,134 $ - $ 3,471,758 $ 34,307,092 Amortization - - - - - Purchases of investments - - - - - Sales or repayment of investments - - - - - Payment-in-kind interest - - - - - Change in unrealized gain (loss) on investments 4,009,396 87,069 - 2,368,502 6,464,967 Transfers in/out (1) 158,159 (158,159 ) Fair value at end of period $ 23,567,755 $ 11,364,044 $ - $ 5,840,260 $ 40,772,059 Change in unrealized gain (loss) on Level 3 investments still held as of September 30, 2022 $ 4,167,555 $ (71,090 ) $ - $ 2,368,502 $ 6,464,967 (1) The Company’s investment in Dominion Medical Management, Inc. changed from a second lien loan to a first lien loan in the third quarter of 2022. Changes in Level 3 assets measured at fair value for the year ended December 31, 2021 are as follows: First Lien Loans Second Lien Loans Unsecured Loans Equity Total Fair value at beginning of year $ 14,671,435 $ 5,235,708 $ - $ 1,659,880 $ 21,567,023 Purchases of investments - - - - - Sales or repayment of investments (230,570 ) - - - (230,570 ) Payment-in-kind interest 97,401 - - - 97,401 Realized gain (loss) on investments - - - - - Change in unrealized gain (loss) on investments 4,861,934 6,199,426 - 1,811,878 12,873,238 Transfer due to restructuring - - - - - Fair value at end of year $ 19,400,200 $ 11,435,134 $ - $ 3,471,758 $ 34,307,092 Change in unrealized gain (loss) on Level 3 investments still held as of December 31, 2021 $ 4,861,934 $ 6,199,426 $ - $ 1,811,878 $ 12,873,238 The following table provides quantitative information regarding Level 3 fair value measurements as of September 30, 2022: Description Fair Value Valuation Technique (1) Unobservable Inputs Range (Average (2) First Lien Loans $ 11,372,699 Settlement Recovery Market Yield 7.61%-9.85% (8.73%) 11,988,243 Enterprise Value Coverage EV / Store level EBITDAR 4.75x-5.25x (5.00x) Location Value $1,450,000-$1,650,000 ($1,550,000) Total 23,360,942 Second Lien Loans 11,364,044 Enterprise Value Coverage EV / LTM Revenue 0.40x-0.45x (0.43x) EV / PF EBITDA 5.25x-6.25x (5.75x) Total 11,364,044 Unsecured Loans - Enterprise Value Coverage EV / LTM Revenue 0.40x-0.45x (0.43x) Total - Equity 4,113,013 Enterprise Value Coverage EV / LTM Revenue 0.40x-0.45x (0.43x) EV / PF EBITDA 5.25x-6.25x (5.75x) EV / Store level EBITDAR 4.25x-4.75x (5.00x) Location Value $1,450,000-$1,650,000 ($1,550,000) 1,726,047 Appraisal Value Coverage Cost Approach $1,467,000-$1,793,000 ($1,630,000) Sales Comparison Approach $1,404,000-$1,716,000 ($1,560,000) Total 5,839,060 Total Level 3 Investments $ 40,564,046 (1) The valuation technique for the Company's investment in a First Lien Loan changed to remove the Receiver Recovery, Bankruptcy Recovery and Zero Recovery techniques. The reason for the change was that the Company entered into a settlement agreement prior to the end of the quarter and received funds within a week subsequent to quarter end. (2) The average represents the arithmetic average of the unobservable inputs and is not weighted by the relative fair value. One of the Company’s remaining Level 3 investments, valued at $1,200, has been valued using unadjusted third party transactions. The other remaining Level 3 investment, valued at $206,813, was an investment in a portfolio company that ceased operations in the 2nd quarter of 2022. This value consisted of an estimate of remaining cash available to distribute to priority lienholders. As a result, there were no unobservable inputs that have been internally developed by the Company in determining the fair values of these investments as of September 30, 2022. The following table provides quantitative information regarding Level 3 fair value measurements as of December 31, 2021: Description Fair Value Valuation Technique (1) Unobservable Inputs Range (Average (2) First Lien Loans $ 4,854,720 Discounted Cash Flow Discount Rate 55.00%-65.00% (60.00%) Judgment Recovery Recovery Rate 40.00%-60.00% (50.00%) Judgment + Penalty Recovery Recovery Rate 40.00%-60.00% (50.00%) Zero Recovery Recovery Rate 0.00%-0.00% (0.00%) 14,545,480 Enterprise Value Coverage EV / Store level EBITDAR 4.75x-5.25x (5.00x) Location Value $1,275,000-$1,375,000 ($1,325,000) Total 19,400,200 Second Lien Loans 11,435,134 Enterprise Value Coverage EV / RR Revenue Multiple 0.48x-0.53x (0.50x) EV / 2021 Revenue 0.60-0.70x (0.65x) EV / CFY EBITDA 7.50x-8.50x (8.00x) EV / CFY Revenue 0.95x-1.05x (1.00x) Pending Sale Approach Weight 35.40%-35.40% (35.40%) Total 11,435,134 Unsecured Loans - Enterprise Value Coverage EV / RR Revenue Multiple 0.48x-0.53x (0.50x) Total - Equity 1,725,445 Enterprise Value Coverage EV / RR Revenue Multiple 0.48x-0.53x (0.50x) EV / 2021 Revenue 0.60x-0.70x (0.65x) EV / CFY EBITDA 7.50x-8.50x (8.00x) EV / CFY Revenue 0.95x-1.05x (1.00x) EV / STORE LEVEL EBITDAR 4.75x-5.25x (5.00x) Location Value $1,275,000-$1,375,000 ($1,325,000) Pending Sale Approach Weight 35.40%-35.40% (35.40%) 1,745,113 Appraisal Value Coverage Cost Approach $1,458,000-$1,782,000 ($1,620,000) Sales Comparison Approach $1,350,000-$1,650,000 ($1,500,000) Total 3,470,558 Total Level 3 Investments $ 34,305,892 (1) The valuation technique for the Company's investment in a First Lien Loan changed with addition of a Judgment Recovery, Judgment plus Penalty Recovery and Zero Recovery techniques. The reason for the change was the additional recovery options that presented itself in the fourth quarter. The valuation technique for the Company's investment in a Second Lien Loan and an Equity position changed with the addition of a Pending Sale technique. The reason for the change is that these investments are pending sale as of December 31, 2021. (2) The average represents the arithmetic average of the unobservable inputs and is not weighted by the relative fair value. The Company’s remaining Level 3 investments aggregating approximately $1,200 have been valued using unadjusted third party transactions. As a result, there were no unobservable inputs that have been internally developed by the Company in determining the fair values of these investments as of December 31, 2021. As of September 30, 2022 and December 31, 2021, the Company used both market and income approaches to value certain equity investments as the Company felt this approach better reflected the fair value of these investments. By considering multiple valuation approaches (and consequently, multiple valuation techniques), the valuation approaches and techniques are not likely to change from one period of measurement to the next; however, the weighting of each in determining the final fair value of a Level 3 investment may change based on recent events or transactions. Refer to “Note 2—Significant Accounting Policies” for more detail. The Company considers all relevant information that can reasonably be obtained when determining the fair value of Level 3 investments. Due to any given portfolio company’s information rights, changes in capital structure, recent events, transactions, or liquidity events, the type and availability of unobservable inputs may change. Increases (decreases) in revenue multiples, earnings before interest and taxes (“EBIT”) multiples, time to expiration, and stock price/strike price would result in higher (lower) fair values all else equal. Decreases (increases) in discount rates, volatility, and annual risk rates, would result in higher (lower) fair values all else equal. The market approach utilizes market value (revenue and EBIT) multiples of publicly traded comparable companies and available precedent sales transactions of comparable companies. The Company carefully considers numerous factors when selecting the appropriate companies whose multiples are used to value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, relevant risk factors, as well as size, profitability and growth expectations. In general, precedent transactions include recent rounds of financing, recent purchases made by the Company, and tender offers. Refer to “Note 2—Significant Accounting Policies” for more detail. The primary significant unobservable input used in the fair value measurement of the Company’s debt securities (first lien loans, second lien loans and unsecured loans), including income-producing investments in funds, is the discount rate. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. In determining the discount rate, for the income (discounted cash flow) or yield approach, the Company considers current market yields and multiples, portfolio company performance, leverage levels and credit quality, among other factors in its analysis. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate discount rate to use in the income approach. The primary significant unobservable inputs used in the fair value measurement of the Company’s equity investments are the EBITDA multiple and revenue multiple, which is used to determine the Enterprise Value. Significant increases (decreases) in the Enterprise Value in isolation would result in a significantly higher (lower) fair value measurement. To determine the Enterprise Value for the market approach, the Company considers current market trading and/or transaction multiples, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate multiple to use in the market approach. The primary unobservable inputs used in the fair value measurement of the Company’s equity investments, when using an option pricing model to allocate the equity value to the investment, are the discount rate for lack of marketability and volatility. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the volatility in isolation would result in a significantly higher (lower) fair value measurement. Changes in one or more factors can have a similar directional change on other factors in determining the appropriate discount rate or volatility to use in the valuation of equity using an option pricing model. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS House Hanover Investment Advisory Agreement House Hanover has served as the Company’s investment advisor since January 1, 2018 pursuant to the Interim Investment Advisory Agreement (until May 31, 2018) and the House Hanover Investment Advisory Agreement (since May 31, 2018). House Hanover is registered as an investment advisor under the 1940 Act. Advisory Services House Hanover is registered as an investment adviser under the 1940 Act and serves as the Company’s investment advisor pursuant to the House Hanover Investment Advisory Agreement in accordance with the 1940 Act. House Hanover is owned by and an affiliate of Mr. Mark DiSalvo, the Company’s Interim President, Interim Chief Executive Officer, and a director of the Company. Subject to supervision by the Company’s Board, House Hanover oversees the Company’s day-to-day operations and provides the Company with investment advisory services. Under the terms of the House Hanover Investment Advisory Agreement, House Hanover, among other things: (i) determines the composition and allocation of the portfolio of the Company, the nature and timing of the changes therein and the manner of implementing such changes; (ii) identifies, evaluates and negotiates the structure of the investments made by the Company; (iii) executes, closes, services and monitors the Company’s investments; (iv) determines the securities and other assets that the Company shall purchase, retain, or sell; (v) performs due diligence on prospective portfolio companies; (vi) provides the Company with such other investment advisory, research and related services as the Company may, from time to time, reasonably require for the investment of its funds; and (vii) if directed by the Board, assists in the execution and closing of the sale of the Company’s assets or a sale of the equity of the Company in one or more transactions. House Hanover’s services under the House Hanover Investment Advisory Agreement may not be exclusive and it is free to furnish similar services to other entities so long as its services to the Company are not impaired. At the request of the Company, House Hanover, upon any transition of the Company’s investment advisory relationship to another investment advisor or upon any internalization, shall provide reasonable transition assistance to the Company and any successor investment advisor. Management Fee Pursuant to the House Hanover Investment Advisory Agreement, the Company pays House Hanover a base management fee for investment advisory and management services. The cost of the base management fee is ultimately borne by the Company’s stockholders. The House Hanover Investment Advisory Agreement does not contain an incentive fee component. The base management fee is calculated at an annual rate of 1.00% of the Company’s gross assets, including assets purchased with borrowed funds or other forms of leverage and excluding cash and cash equivalents net of all indebtedness of the Company for borrowed money and other liabilities of the Company. The base management fee is payable quarterly in arrears, and determined as set forth in the preceding sentence at the end of the two most recently completed calendar quarters. The Board may retroactively adjust the valuation of the Company’s assets and the resulting calculation of the base management fee in the event the Company or any of its assets are sold or transferred to an independent third party or the Company or House Hanover receives an audit report or other independent third party valuation of the Company. To the extent that any such adjustment increases or decreases the base management fee of any prior period, the Company will be obligated to pay the amount of increase to House Hanover or House Hanover will be obligated to refund the decreased amount, as applicable. Management fees earned by House Hanover for the three months ended September 30, 2022 and September 30, 2021 were $83,014 and $74,347, respectively. Management fees earned by House Hanover for the nine months ended September 30, 2022 and September 30, 2021 were $247,395 and $182,778, respectively. As of September 30, 2022 and December 31, 2021, management fees of $512,735 and $262,324, respectively, were payable to House Hanover. House Hanover has allowed management fees to accrue and not be paid until such time as the Company has sufficient capital to pay them. On April 29, 2021, December 6, 2021, and November 2, 2022, the Company made payments to House Hanover for management fees in the amount of $285,137, $266,984, and $512,735, respectively. The Company expects cash flows from operations plus cash reserves to be able to fund management fees going forward beginning in the fourth quarter of 2022. Incentive Fee The Company is not obligated to pay House Hanover an incentive fee. Incentive fees are a typical component of investment advisory agreements with business development companies. Payment of Expenses House Hanover bears all compensation expense (including health insurance, pension benefits, payroll taxes and other compensation related matters) of its employees and bears the costs of any salaries or directors’ fees of any officers or directors of the Company who are affiliated persons (as defined in the 1940 Act) of House Hanover. However, House Hanover, subject to approval by the Board of the Company, is entitled to reimbursement for the portion of any compensation expense and the costs of any salaries of any such employees to the extent attributable to services performed by such employees for the Company. During the term of the House Hanover Investment Advisory Agreement, House Hanover will also bear all of its costs and expenses for office space rental, office equipment, utilities and other non-compensation related overhead allocable to performance of its obligations under the House Hanover Investment Advisory Agreement. Except as provided in the preceding paragraph the Company reimburses House Hanover all direct and indirect costs and expenses incurred by it during the term of the House Hanover Investment Advisory Agreement for: (i) due diligence of potential investments of the Company, (ii) monitoring performance of the Company’s investments, (iii) serving as officers of the Company, (iv) serving as directors and officers of portfolio companies of the Company, (v) providing managerial assistance to portfolio companies of the Company, and (vi) enforcing the Company’s rights in respect of its investments and disposing of its investments; provided, however, that, any third party expenses incurred by House Hanover in excess of $50,000 in the aggregate in any calendar quarter will require advance approval by the Board of the Company. In addition to the foregoing, the Company will also be responsible for the payment of all of the Company’s other expenses, includi ng the payment of the following fees and expenses: ● organizational and offering expenses; ● expenses incurred in valuing the Company’s assets and computing its net asset value per share (including the cost and expenses of any independent valuation firm); ● subject to the guidelines approved by the Board of Directors, expenses incurred by House Hanover that are payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for the Company and in monitoring the Company’s investments and performing due diligence on the Company’s prospective portfolio companies or otherwise related to, or associated with, evaluating and making investments; ● interest payable on debt, if any, incurred to finance the Company’s investments and expenses related to unsuccessful portfolio acquisition efforts; ● offerings of the Company’s common stock and other securities; ● administration fees; ● transfer agent and custody fees and expenses; ● U.S. federal and state registration fees of the Company (but not House Hanover); ● all costs of registration and listing the Company’s shares on any securities exchange; ● U.S. federal, state and local taxes; ● independent directors’ fees and expenses; ● costs of preparing and filing reports or other documents required of the Company (but not House Hanover) by the SEC or other regulators; ● costs of any reports, proxy statements or other notices to stockholders, including printing costs; ● the costs associated with individual or group stockholders; ● the Company’s allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums; ● direct costs and expenses of administration and operation of the Company, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs; and ● all other non-investment advisory expenses incurred by the Company regarding administering the Company’s business. Duration and Termination Unless terminated earlier as described below, the House Hanover Investment Advisory Agreement will continue in effect for a period of one (1) year from its effective date. It will remain in effect from year to year thereafter if approved annually by the Company’s Board or by the affirmative vote of the holders of a majority of the Company’s outstanding voting securities, and, in either case, if also approved by a majority of Company’s directors who are neither parties to the House Hanover Investment Advisory Agreement nor “interested persons” (as defined under the 1940 Act) of any such party. The House Hanover Investment Advisory Agreement was last annually renewed by the Board and by a majority of the members of the Board who are not parties to the House Hanover Investment Advisory Agreement or “interested persons” (as such term is defined in the 1940 Act) of any such party, in accordance with the requirements of the 1940 Act and the House Hanover Investment Advisory Agreement on May 9, 2022. The House Hanover Investment Advisory Agreement may be terminated at any time, without the payment of any penalty, (i) upon written notice, effective on the date set forth in such notice, by the vote of a majority of the outstanding voting securities of the Company or by the vote of the Company’s directors, or (ii) upon 60 days’ written notice, by House Hanover. The House Hanover Investment Advisory Agreement automatically terminates in the event of its “assignment,” as defined in the 1940 Act. Indemnification The House Hanover Investment Advisory Agreement provides that, absent willful misfeasance, bad faith or negligence in the performance of their duties, or by reason of the material breach or reckless disregard of their duties and obligations under the House Hanover Investment Advisory Agreement, House Hanover and its officers, managers, employees and members are entitled to indemnification from the Company for any damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) arising from the rendering of House Hanover’s services under the House Hanover Investment Advisory Agreement or otherwise as the Company’s investment advisor. The amounts payable for indemnification will be calculated net of payments recovered by the indemnified party under any insurance policy with respect to such losses. At all times during the term of the House Hanover Investment Advisory Agreement and for one year thereafter, House Hanover is obligated to maintain directors and officers/errors and omission liability insurance in an amount and with a provider reasonably acceptable to the Board of the Company. Administration Services and Service Agreement House Hanover is entitled to reimbursement of expenses under the House Hanover Investment Advisory Agreement for administrative services performed for the Company. On January 1, 2018, Princeton Capital Corporation directly entered into a service agreement with SS&C Technologies Holdings, Inc. (the “Sub-Administrator”) to provide certain administrative services to the Company. In exchange for providing services, the Company pays the Sub-Administrator an asset-based fee with a $151,025 annual minimum as adjusted for any reimbursement of expenses. This annual minimum was amended in the service agreement on April 20, 2019 and increased on July 1, 2020, July 1, 2021 and again on July 1, 2022 by the US Consumer Price Index – All Urban Consumers per the service agreement. This asset-based fee will vary depending upon our gross assets, as adjusted, as follows: Gross Assets Fee first $150 million of gross assets 20 basis points (0.20%) next $150 million of gross assets 15 basis points (0.15%) next $200 million of gross assets 10 basis points (0.10%) in excess of $500 million of gross assets 5 basis points (0.05%) Administration fees were $67,500 and fees to the Sub-Administrator were $37,757 for the three months ended September 30, 2022, as shown on the Statements of Operations under administration fees. Administration fees were $202,500 and fees to the Sub-Administrator were $106,043 for the nine months ended September 30, 2022, as shown on the Statements of Operations under administration fees. Administration fees were $67,500 and fees to the Sub-Administrator were $34,143 for the three months ended September 30, 2021, as shown on the Statements of Operations under administration fees. Administration fees were $202,500 and fees to the Sub-Administrator were $97,967 for the nine months ended September 30, 2021, as shown on the Statements of Operations under administration fees. As of September 30, 2022 and December 31, 2021, administration fees of $472,500 and $273,016, respectively, were payable to House Hanover and are recorded as Due to affiliates on the Statements of Assets and Liabilities. On October 26, 2022, the Board of Directors accepted a proposal from the Company’s investment adviser, House Hanover, LLC, of an adjustment in the amount of $31,875 to reduce these outstanding administration fees payable for the allocation of Chief Compliance Officer administration fees. House Hanover has allowed administration fees to accrue and not be paid until such time as the Company has sufficient capital to pay them. On April 29, 2021, December 6, 2021, and November 2, 2022, the company made payments to House Hanover for administration fees in the amount of $202,500, $270.000, and $440,625, respectively. The Company expects cash flows from operations plus cash reserves to be able to fund administration fees going forward beginning in the fourth quarter of 2022. Managerial Assistance As a BDC, we offer, and must provide upon request, managerial assistance to our portfolio companies. This assistance could involve monitoring the operations of our portfolio companies, participating in board of directors and management meetings, consulting with and advising officers of portfolio companies and providing other organizational and financial guidance. As of September 30, 2022, none of the portfolio companies had accepted our offer for such services, except for Advantis Certified Staffing Solutions, Inc. (“Advantis”). On May 1, 2022, Advantis requested one of its directors, Gregory J. Cannella who also serves as our Chief Financial Officer, become the Executive Chair of Advantis to provide executive authority and leadership in the absence of their former president, who resigned in March 2022. Mr. Cannella has agreed to take this position and in return will be compensated by Advantis in the amount of $5,000 per month. The title and benefits of this position can be removed at any time by the board of directors of Advantis. |
Financial Highlights
Financial Highlights | 9 Months Ended |
Sep. 30, 2022 | |
Investment Company, Financial Highlights [Abstract] | |
FINANCIAL HIGHLIGHTS | NOTE 7 – FINANCIAL HIGHLIGHTS Three Months Ended Three Months Ended September 30, September 30, (Unaudited) (Unaudited) Per Share Data (1) Net asset value at beginning of period $ 0.276 $ 0.286 Net investment loss (0.002 ) - Change in unrealized gain (loss) 0.060 (0.014 ) Net asset value at end of period $ 0.334 $ 0.272 Total return based on net asset value (2) 21.0 % (4.9 )% Weighted average shares outstanding for period, basic 120,486,061 120,486,061 Ratio/Supplemental Data: Net assets at end of period $ 40,195,377 $ 32,732,521 Average net assets $ 33,288,189 $ 34,388,442 Ratio of net operating expenses to average net assets (3) 8.4 % 4.6 % Ratio of net operating expenses excluding management fees, incentive fees, and interest expense to average net assets (3) 7.4 % 3.8 % Ratio of net investment loss to average net assets (3) (3.2 )% (0.5 )% Ratio of net investment loss to average net assets, excluding other income from non-investment sources (3) (3.2 )% (0.5 )% Ratio of net increase (decrease) in net assets resulting from operations to average net assets (3) 83.2 % (19.3 )% Portfolio Turnover 0.0 % 0.40 % Nine Months Ended Nine Months Ended September 30, September 30, (Unaudited) (Unaudited) Per Share Data (1) Net asset value at beginning of period $ 0.286 $ 0.187 Net investment loss (0.006 ) (0.005 ) Change in unrealized gain (loss) 0.054 0.090 Net asset value at end of period $ 0.334 $ 0.272 Total return based on net asset value (2) 16.8 % 45.5 % Weighted average shares outstanding for period, basic 120,486,061 120,486,061 Ratio/Supplemental Data: Net assets at end of period $ 40,195,377 $ 32,732,521 Average net assets $ 33,703,681 $ 27,905,393 Ratio of net operating expenses to average net assets (3) 7.3 % 5.6 % Ratio of net operating expenses excluding management fees, incentive fees, and interest expense to average net assets (3) 6.3 % 4.7 % Ratio of net investment loss to average net assets (3) (2.9 )% (3.1 )% Ratio of net investment loss to average net assets, excluding other income from non-investment sources (3) (2.9 )% (3.1 )% Ratio of net increase in net assets resulting from operations to average net assets (3) 22.7 % 49.1 % Portfolio Turnover 0.0 % 0.47 % Year Ended December 31, 2021 2020 2019 2018 2017 Per Share Data (1) Net asset value at beginning of year $ 0.187 $ 0.276 $ 0.345 $ 0.344 $ 0.365 Net investment income (loss) (0.007 ) (0.005 ) (0.009 ) 0.009 0.008 Change in unrealized gain (loss) 0.106 (0.022 ) (0.060 ) (0.007 ) (0.035 ) Realized gain (loss) - (0.062 ) - (0.001 ) 0.006 Net asset value at end of year $ 0.286 $ 0.187 $ 0.276 $ 0.345 $ 0.344 Total return based on net asset value (2) 52.9 % (32.60 )% (20.0 )% 0.3 % (5.8 )% Weighted average shares outstanding for year, basic 120,486,061 120,486,061 120,486,061 120,486,061 120,486,061 Ratio/Supplemental Data: Net assets at end of year $ 34,472,992 $ 22,479,540 $ 33,280,329 $ 41,554,951 $ 41,407,539 Average net assets $ 29,126,862 $ 25,276,013 $ 38,504,249 $ 41,416,562 $ 42,634,685 Total operating expenses to average net assets 6.0 % 6.2 % 5.8 % 5.4 % 3.8 % Net operating expenses to average net assets (4) 6.0 % 6.2 % 5.8 % 5.4 % 3.3 % Net operating expenses excluding management fees, incentive fees, and interest expense to average net assets 5.1 % 5.2 % 4.9 % 4.3 % 2.8 % Net operating expenses excluding management fees, incentive fees, and interest expense to average net assets, excluding management fee waiver 5.1 % 5.2 % 4.9 % 4.3 % 3.2 % Net investment income (loss) to average net assets (3.0 )% (2.7 )% (2.8 )% 2.5 % 2.4 % Net investment income (loss) to average net assets, excluding management fee waiver (3.0 )% (2.7 )% (2.8 )% 2.5 % 1.9 % Net investment income (loss) to average net assets, excluding other income from non-investment sources (3.0 )% (3.0 )% (2.8 )% 2.5 % 0.1 % Net investment income (loss) to average net assets, excluding other income from non-investment sources, excluding management fee waiver (5) (3.0 )% (3.0 )% (2.8 )% 2.5 % (0.4 )% Net increase (decrease) in net assets resulting from operations to average net assets 41.2 % (42.7 )% (21.5 )% 0.4 % (6.0 )% Portfolio Turnover 0.4 % 0.4 % 0.7 % 0.5 % 7.0 % (1) Financial highlights are based on weighted average shares outstanding. (2) Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in the period. The total returns are not annualized. (3) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses are not annualized. For the three and nine months ended September 30, 2022 and 2021, the Company did not exclude any non-recurring expenses. Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios. (4) Net operating expenses includes a management fee waiver in the amount of $216,559 for the year ended December 31, 2017. (5) Other income from non-investment sources only includes the reduction of previously accrued expenses totaling $968,256 for the year ended December 31, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company may enter into investment agreements under which it commits to make an investment in a portfolio company at some future date or over a specified period of time. The Company maintains sufficient assets to provide adequate cover to allow it to satisfy its unfunded commitment amount as of September 30, 2022. The unfunded commitment is accounted for under ASC 820. As of the date of this report, all commitments have been funded. Legal Proceedings From time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company’s rights under contracts with its portfolio companies. Other than the Great Value Storage Litigation described below, the Company is not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. Great Value Storage Litigation On March 14, 2019, the Company filed a complaint against Great Value Storage, LLC (“GVS”), World Class Capital Group, LLC (“World Class”), and Natin Paul, which we refer to collectively as the GVS Defendants, in the District Court for Harris County, Texas. GVS is one of the Company’s portfolio companies. On January 22, 2021 the Harris County District Court granted the Company’s Motion for Partial Summary Judgment on its breach of contract claim against GVS and World Class. On March 4, 2021, the Final Judgment Order was entered awarding damages to the Company in the amount of $9,910,601. On January 1, 2022, the Company amended and finalized proofs of claim in the U.S. Bankruptcy Court for the Northern District of Texas, as it has been discovered that Natin Paul had transferred the properties from the GVS Defendants and to the debtor entities, which are GVS affiliates that filed bankruptcy. On March 21, 2022, the bankruptcy court reserved $15 million for our claim.On, April 27, 2022, the Company filed an adversary proceeding in the bankruptcy court to recover amounts owed to the Company. As disclosed in the Company’s Form 8-K that was filed on September 9, 2022, on September 2, 2022, the Company entered into a Settlement, Assignment and Acceptance Agreement with Natin Paul and his related parties, whereby the Company would sell its promissory notes from GVS and World Class to Phoenix Lending, LLC, a newly formed Natin Paul related entity, in exchange for a settlement payment of $11,372,699 to be funded out of the $15 million reserve in the bankruptcy court. Further, the GVS affiliated parties agreed to indemnify the Company and retain $1 million on reserve in the bankruptcy court for any future legal fees or claims related to the settlement. On October 7, 2022, the Company closed the settlement and received $11,372,699. Risks and Uncertainties COVID-19 The Company is subject to risks associated with unforeseen events, including but not limited to, natural disasters, acts of terrorism and the emergence of a pandemic or other public health emergencies, which could create economic, financial and business disruptions. Certain impacts from the COVID-19 outbreak and its variants may have a significant negative impact on the Company’s operations and performance. These circumstances may continue for an extended period of time, and may have an adverse impact on economic and market conditions. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual companies, are not known. The extent of the impact to the financial performance and the operations of the Company will depend on future developments, which are highly uncertain and cannot be predicted. Russia/Belarus Action with Ukraine Various social and political circumstances in the U.S. and around the world (including wars and other forms of conflict, including rising trade tensions between the United States and China, and other uncertainties regarding actual and potential shifts in the U.S. and foreign, trade, economic and other policies with other countries, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics), may also contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide. Specifically, the rising conflict between Russia and Ukraine, and resulting market volatility could adversely affect the Company's operations. In response to the conflict between Russia and Ukraine, the U.S. and other countries have imposed sanctions or other restrictive actions against Russia. Any of the above factors, including sanctions, export controls, tariffs, trade wars and other governmental actions, may materially impact the valuation of the portfolio investments and in turn, the net asset value of the Company. The specific impact on the Company's financial condition, results of operations, and cash flows is not determinable as of the date of these financial statements. |
Unconsolidated Significant Subs
Unconsolidated Significant Subsidiaries | 9 Months Ended |
Sep. 30, 2022 | |
Unconsolidated Significant Subsidiaries [Abstract] | |
UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES | NOTE 9 – UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES The Company’s investments are primarily in private small and lower middle-market companies. In accordance with Rules 3.09 and 4.08(g) of Regulation S-X, the Company must determine which of its unconsolidated controlled portfolio companies are considered “significant subsidiaries”, if any. On May 21, 2020, the U.S. Securities and Exchange Commission adopted rule amendments to be effective on January 1, 2021. Under the new rules, a new definition of “significant subsidiary” was adopted. In evaluating these investments, there are now two tests utilized to determine if any of the Company’s control investments are considered significant subsidiaries; the investment and the income significant tests. The asset significant test was eliminated under the new rules. Rule 3.09 of Regulation S-X, as interpreted by the SEC, requires the Company to include separate audited financial statements of any unconsolidated majority-owned subsidiary in an annual report if the subsidiary investment value exceeds 20% of the Company’s total investments at fair value, the income from the subsidiary investment exceeds 80% of the Company’s change in net assets resulting from operations, or the income from the subsidiary investment exceeds 20% of the Company’s change in net assets resulting from operations and the subsidiary investment value exceeds 5% of the Company’s total investments at fair value. Rule 4-08(g) of Regulation S-X requires summarized financial information of an unconsolidated subsidiary in an annual report where the Company owns more than 25% of the voting securities or is otherwise controlled by the Company if it does not qualify under Rule 3.09 of Regulation S-X and if the subsidiary investment value exceeds 10% of the Company’s total investments at fair value, the income from the subsidiary investment exceeds 80% of the Company’s change in net assets resulting from operations, or the income from the subsidiary investment exceeds 10% of the Company’s change in net assets resulting from operations and the subsidiary investment value exceeds 5% of the Company’s total investments at fair value. Rule 10-01(b)(1) of Regulation S-X requires summarized financial information for interim financial statements, if the Company owns more than 25% of the voting securities or is otherwise controlled by the Company and if the subsidiary investment value exceeds 10% of the Company’s total investments at fair value, the income from the subsidiary investment exceeds 80% of the Company’s change in net assets resulting from operations, or the income from the subsidiary investment exceeds 10% of the Company’s change in net assets resulting from operations and the subsidiary investment value exceeds 5% of the Company’s total investments at fair value. The Company has determined that Rockfish Seafood Grill, Inc., one of the Company’s four majority owned or controlled portfolio company, was considered a significant subsidiary at September 30, 2022 as prescribed under Rule 10-01(b)(1) of Regulation S-X. The following tables show the summarized financial information for Rockfish Seafood Grill, Inc. (numbers in thousands): Rockfish Seafood Grill, Inc. Nine months Nine months (unaudited) (unaudited) Income Statement Net Revenue $ 13,091 $ 13,931 Gross Profit $ 9,031 $ 9,813 Net Income (Loss) $ 384 $ 1,265 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred up to the date unaudited condensed financial statements were issued. Based upon this review, the Company did not identify any subsequent events, other than noted below, that would have required adjustment or disclosure in the unaudited condensed financial statements.: On October 7, 2022, the Company received $11,372,699 as its settlement payment in connection with the Settlement, Assignment and Acceptance Agreement with Great Value Storage, LLC and related parties. On October 17, 2022, the Board terminated the “opt out” dividend reinvestment plan, as disclosed in the Company’s 8-K filed on October 19, 2022. Written notice of such termination was mailed to the Company’s stockholders on October 21, 2022, with an effective date of November 20, 2022. On October 26, 2022, the Board of Directors accepted a proposal from the Company’s investment adviser, House Hanover, LLC, of an adjustment in the amount of $31,875 to reduce the outstanding amounts under Due to affiliates on the Statements of Assets and Liabilities for the allocation of Chief Compliance Officer administration fees. Further, the Board of Directors accepted a proposal of Chief Compliance Officer administration fees beginning October 1, 2022 to be allocated 65% to the Company and 35% to House Hanover, LLC. As disclosed in the Company’s Form 8-K that was filed on October 27, 2022, the Board of Directors has authorized and declared a cash dividend of $0.075 per share of common stock payable on December 1, 2022 to stockholders of record as of the close of business on November 21, 2022. |
Schedule 12-14
Schedule 12-14 | 9 Months Ended |
Sep. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule 12-14 | Schedule 12-14 The table below represents the fair value of control and affiliate investments at December 31, 2021 and any amortization, purchases, sales, and realized and change in unrealized gain (loss) made to such investments, as well as the ending fair value as of September 30, 2022. Portfolio Company/Type of Investment (1) Principal Amount of Fair Value at Purchases (2) Sales Transfers Change in Fair Value at Control Investments Advantis Certified Staffing Solutions, Inc. Second Lien Loan, 12.0% Cash, due 11/30/2021 (3) $ 4,500,000 $ - $ 4,441,765 $ - $ - $ - $ (397,721 ) $ 4,044,044 Unsecured loan Consolidated BL Note 6.33% due 12/31/2022 $ 1,381,586 65,411 - - - - - - Common Stock – Series A (3) 225,000 - - - - - - - Common Stock – Series B (3) 9,500,000 - - - - - - - Warrant for 250,000 Shares of Series A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - - Warrant for 700,000 Shares of Series A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - - Dominion Medical Management, Inc. First Lien Loan, 12.0% Cash, 6% PIK due, 3/31/2020 (2) (3) $ 1,516,144 - 158,159 - - - 48,654 206,813 Integrated Medical Partners, LLC Preferred Membership – Class A units (3) 800 - - - - - - - Preferred Membership – Class B units (3) 760 - - - - - - - Common Units (3) 14,082 - - - - - - - PCC SBH Sub, Inc. Common Stock (3) 100 - 1,745,113 - - - (19,066 ) 1,726,047 Rockfish Seafood Grill, Inc. First Lien Loan, 8% Cash, 6.0% PIK, due 3/31/2018 $ 6,352,944 413,463 12,294,480 - - - (2,557,237 ) 9,737,243 Revolving Loan, 8% PIK, due 12/31/2022 $ 2,251,000 91,541 2,251,000 - - - - 2,251,000 Rockfish Holdings, LLC Warrant for Membership Interest, exercise price $0.001 per 1% membership interest, expires 7/28/2028 (3) 10.0 % - 172,549 - - - (172,549 ) - Membership Interest – Class A (3) 99.997 % - 1,552,896 - - - (1,552,896 ) - Total Control Investments $ 570,415 $ 22,615,962 $ - $ - $ - $ (4,650,815 ) $ 17,965,147 (1) Represents an illiquid investment. (2) Includes PIK interest. (3) Non-income producing security. The table below represents the fair value of control and affiliate investments at December 31, 2020 and any amortization, purchases, sales, and realized and change in unrealized gain (loss) made to such investments, as well as the ending fair value as of September 30, 2021. Portfolio Company/Type of Investment (1) Principal Amount of Fair Value at Purchases (2) Sales Change in Fair Value at Control Investments Advantis Certified Staffing Solutions, Inc. Second Lien Loan, 12.0% Cash, due 11/30/2021 (3) $ 4,500,000 $ - $ 3,008,208 $ - $ - $ 1,507,113 $ 4,515,321 Unsecured loan Consolidated BL Note 6.33% due 12/31/2021 $ 1,381,586 65,411 - - - - - Common Stock – Series A (3) 225,000 - - - - - - Common Stock – Series B (3) 9,500,000 - - - - - - Warrant for 250,000 Shares ofSeries A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - Warrant for 700,000 Shares of Series A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - Dominion Medical Management, Inc. Second Lien Loan, 12.0% Cash, 6% PIK due, 3/31/2020 (2) (3) $ 1,516,144 - - - - - - Integrated Medical Partners, LLC Preferred Membership – Class A units (3) 800 - - - - - - Preferred Membership – Class B units (3) 760 - - - - - - Common Units (3) 14,082 - - - - - - PCC SBH Sub, Inc. Common Stock (3) 100 - 1,658,680 - - 102,441 1,761,121 Rockfish Seafood Grill, Inc. First Lien Loan, 8% Cash, 6.0% PIK, due 3/31/2018 (3) $ 6,352,944 - 6,910,188 - - 5,072,136 11,982,324 Revolving Loan, 8% Cash, due 12/31/2021 $ 2,251,000 429,381 2,703,315 97,401 (230,570 ) (319,146 ) 2,251,000 Rockfish Holdings, LLC Warrant for Membership Interest, exercise price $0.001 per 1% membership interest, expires 7/28/2028 (3) 10.000 % - - - - 311,946 311,946 Membership Interest – Class A (3) 99.997 % - - - - 2,807,427 2,807,427 Total Control Investments $ 494,792 $ 14,280,391 $ 97,401 $ (230,570 ) $ 9,481,917 $ 23,629,139 (1) Represents an illiquid investment. (2) Includes PIK interest. (3) Non-income producing security. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, (“U.S. GAAP”). In accordance with Regulation S-X under the Securities Act of 1933 and Securities Exchange Act of 1934, the Company does not consolidate portfolio company investments. The accounting records of the Company are maintained in U.S. dollars. As an investment company, as defined by the 1940 Act, the Company follows investment company accounting and reporting guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – “Financial Services - Investment Companies”, which is U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. The reported amounts for the nine months ended September 30, 2022 may not be indicative of the results ultimately achieved for the year ended December 31, 2022 which will be presented in the Company’s annual report on form 10-K. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Changes in the economic environment, financial markets, creditworthiness of our portfolio companies and any other parameters used in determining these estimates could cause actual results to differ. It is likely that changes in these estimates will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ materially from such estimates. |
Portfolio Investment Classification | Portfolio Investment Classification The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation. Under the 1940 Act, “Affiliated Investments” are defined as those non-control investments in companies in which the Company owns between 5% and 25% of the voting securities. Under the 1940 Act, “Non-affiliated Investments” are defined as investments that are neither Control Investments nor Affiliated Investments. As of September 30, 2022, the Company had control investments in Advantis Certified Staffing Solutions, Inc., PCC SBH Sub, Inc., Rockfish Holdings, LLC, Rockfish Seafood Grill, Inc., Integrated Medical Partners, LLC and Dominion Medical Management, Inc. as defined under the 1940 Act. As of December 31, 2021, the Company had control investments in Advantis Certified Staffing Solutions, Inc., PCC SBH Sub, Inc., Rockfish Holdings, LLC, Rockfish Seafood Grill, Inc., Integrated Medical Partners, LLC and Dominion Medical Management, Inc. as defined under the 1940 Act. Investments are recognized when we assume an obligation to acquire a financial instrument and assume the risks for gains or losses related to that instrument. Investments are derecognized when we assume an obligation to sell a financial instrument and forgo the risks for gains and losses related to that instrument. Specifically, we record all security transactions on a trade date basis. Investments in other non-security financial instruments, such as limited partnerships or private companies, are recorded on the basis of subscription date or redemption date, as applicable. Amounts for investments recognized or derecognized but not yet settled are reported as receivables for investments sold or payable for investments acquired, respectively, in the Statements of Assets and Liabilities. |
Valuation of Investments | Valuation of Investments In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, our board of directors uses various valuation approaches. In accordance with U.S. GAAP, ASC 820 establishes a fair value hierarchy for inputs and is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the board of directors. Unobservable inputs reflect our board of director’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. With respect to investments for which market quotations are not readily available, our board of directors undertakes a multi-step valuation process each quarter, as described below: ● Our quarterly valuation process begins with each portfolio company or investment being initially valued by an independent valuation firm unless an internal valuation process is used, except for those investments where market quotations are readily available; ● Preliminary valuation conclusions are then documented and discussed with our senior management and our investment advisor; ● The valuation committee of our board of directors then reviews these preliminary valuations and approves them for recommendation to the board of directors; ● The board of directors then discusses valuations and determines the fair value of each investment in our portfolio in good faith, based on the input of our investment advisor, the independent valuation firm and the valuation committee. U.S. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. Level 2 — Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including, the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the board of directors in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. For the fair value measurements as of September 30, 2022, the valuation technique for the Company's investment in a First Lien Loan changed to remove the Receiver Recovery, Bankruptcy Recovery and Zero Recovery techniques. The reason for the change was that the Company entered into a settlement agreement prior to the end of the quarter and received funds within a week subsequent to quarter end. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. |
Valuation Processes | Valuation Processes The Company establishes valuation processes and procedures to ensure that the valuation techniques for investments that are categorized within Level 3 of the fair value hierarchy are fair, consistent, and verifiable. The Company’s board of directors designates a Valuation Committee (the “Committee”) to oversee the entire valuation process of the Company’s Level 3 investments. The Committee is comprised of independent directors and reports to the Company’s board of directors. The Committee is responsible for developing the Company’s written valuation processes and procedures, conducting periodic reviews of the valuation policies, and evaluating the overall fairness and consistent application of the valuation policies. The Committee meets on a quarterly basis, or more frequently as needed, to determine the valuations of the Company’s Level 3 investments. Valuations determined by the Committee are required to be supported by market data, third-party pricing sources, industry accepted pricing models, counterparty prices, or other methods that the Committee deems to be appropriate. The Company will periodically test its valuations of Level 3 investments through performing back testing of the sales of such investments by comparing the amounts realized against the most recent fair values reported, and if necessary, uses the findings to recalibrate its valuation procedures. On a quarterly basis and unless an internal valuation process is used, the Company engages the services of a nationally recognized third-party valuation firm to perform an independent valuation of the Company’s Level 3 investments. This valuation firm provides a range of values for selected investments, which is presented to the Valuation Committee to determine the value for each of the selected investments. |
Investment Valuation | Investment Valuation We expect that most of our portfolio investments will take the form of securities that are not publicly traded. The fair value of loans, securities and other investments that are not publicly traded may not be readily determinable, and we will value these investments at fair value as determined in good faith by our board of directors, including reflecting significant events affecting the value of our investments. Most, if not all, of our investments (other than cash and cash equivalents) will be classified as Level 3 under FASB, or ASC 820 “Fair Value Measurements and Disclosures”. This means that our portfolio valuations will be based on unobservable inputs and our own assumptions about how market participants would price the asset or liability in question. We expect that inputs into the determination of fair value of our portfolio investments will require significant management judgment or estimation. Even if observable market data are available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimers materially reduces the reliability of such information. We expect to retain the services of one or more independent service providers to review the valuation of these loans and securities. The types of factors that the board of directors may take into account in determining the fair value of our investments generally include, as appropriate, comparison to publicly traded securities including such factors as yield, maturity and measures of credit quality, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these loans and securities existed. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such loans and securities. We will adjust the valuation of our portfolio quarterly to reflect our board of directors’ determination of the fair value of each investment in our portfolio. Any changes in fair value are recorded in our Statement of Operations as net change in unrealized gain or loss on investments. Debt Securities The Company’s portfolio consists primarily of first lien loans, second lien loans, and unsecured loans. Investments for which market quotations are readily available (“Level 2 Loans”) are generally valued using market quotations, which are generally obtained from an independent pricing service or broker-dealers. For other debt investments (“Level 3 Loans”), market quotations are not available and other techniques are used to determine fair value. The Company considers its Level 3 Loans to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner, the loan is in covenant compliance or is otherwise not deemed to be impaired. In determining the fair value of the performing Level 3 Loans, the Board considers fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions, success and prepayment fees, and other relevant factors, both qualitative and quantitative. In the event that a Level 3 Loan instrument is not performing, as defined above, the Board may evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the Level 3 Loan instrument. Equity Investments Our equity investments, including common stock, membership interests, and warrants, are generally valued using a market approach and income approach. The income approach utilizes primarily the discount rate to value the investment whereas the primary inputs for the market approach are the earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiple and revenue multiples. The Black-Scholes Option Pricing Model, a valuation technique that follows the income approach, is used to allocate the value of the equity to the investment. The pricing model takes into account the contract terms (including maturity) as well as multiple inputs, including time value, implied volatility, equity prices, risk free rates, and interest rates. |
Valuation of Other Financial Instruments | Valuation of Other Financial Instruments The carrying amounts of the Company’s other, non-investment, financial instruments, consisting of cash, receivables, accounts payable, and accrued expenses, approximate fair value due to their short-term nature. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company deposits its cash and restricted cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insured limit; however, management does not believe it is exposed to any significant credit risk. Cash Equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and present insignificant risk of changes in value. The following table provides a reconciliation of cash and restricted cash reporting within the Statements of Assets and Liabilities that sum to the total of the same such amounts shown in the Statements of Cash Flows: September 30, December 31, 2022 2021 Cash and Cash Equivalents $ 187,979 $ 523,815 Restricted Cash 40,624 40,586 Total Cash, Cash Equivalents and Restricted Cash $ 228,603 $ 564,401 As of September 30, 2022 and December 31, 2021, restricted cash consisted of cash held for deposit with law firms that represents the Company in its litigation with Great Value Storage, LLC. |
U.S. Treasury Bills | U.S. Treasury Bills At the end of each fiscal quarter, we may take proactive steps to be in compliance with the RIC diversification requirements under Subchapter M of the Code, which are dependent upon the composition of our total assets at quarter end. We may accomplish this in several ways, including purchasing U.S. Treasury Bills and closing out positions after quarter-end. As of September 30, 2022 and December 31, 2021, the Company did not purchase any U.S. Treasury Bills. The Company does not expect to meet the qualifications of a RIC nor anticipate buying U.S. Treasury Bills until such time as certain strategic alternatives are achieved. |
Revenue Recognition | Revenue Recognition Realized gains or losses on the sale of investments are calculated using the specific identification method. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Origination, closing and/or commitment fees associated with senior and subordinated secured loans are accreted into interest income over the respective terms of the applicable loans. Upon the prepayment of a senior or subordinated secured loan, any prepayment penalties and unamortized loan origination, closing and commitment fees are recorded as interest income. Generally, when a payment default occurs on a loan in the portfolio, or if the Company otherwise believes that the borrower will not be able to make contractual interest payments, the Company may place the loan on non-accrual status and cease recognizing interest income on the loan until all principal and interest is current through payment, or until a restructuring occurs, and the interest income is deemed to be collectible. The Company may make exceptions to this policy if a loan has sufficient collateral value, is in the process of collection or is viewed to be able to pay all amounts due if the loan were to be collected on through an investment in or sale of the business, the sale of the assets of the business, or some portion or combination thereof. Dividend income is recorded on the ex-dividend date. Structuring fees, excess deal deposits, prepayment fees and similar fees are recognized as income as earned, usually when paid. Other fee income from investment sources, includes loan fees, annual fees and monitoring fees from our portfolio investments and are included in other income from non-control/non-affiliate investments and other income from affiliate investments. Income from such sources was $6,064 and $6,064 for the three months ended September 30, 2022, and 2021, respectively. Income from such sources was $17,996 and $17,996 for the nine months ended September 30, 2022, and 2021, respectively. Other income from non-investment sources is generally comprised of interest income earned on cash in the Company’s bank account. Income from such sources was $17 and $21 for the three months ended September 30, 2022 and 2021, respectively. Income from such sources was $55 and $85 for the nine months ended September 30, 2022 and 2021, respectively |
Net Change in Unrealized Gain or Loss | Net Change in Unrealized Gain or Loss Net change in unrealized gain or loss will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. |
Legal Fees | Legal Fees Legal fees invoiced to the Company for the three and nine months ended September 30, 2022 and 2021, were incurred in the normal operating course of business and are included in legal fees on the Statement of Operations. The Company incurred legal fees related to the lawsuit against Great Value Storage, LLC (“GVS”). The amounts invoiced to the Company, prior to the final judgment received on March 4, 2021, for the nine months ended September 30, 2022 and 2021 were $0 and $14,423. These amounts are recoverable per the loan agreements and were invoiced to GVS and included in the amount Due from portfolio companies on the Statements of Assets and Liabilities. The amounts invoiced to the Company, after the final judgment received on March 4, 2021, for the nine months ended September 30, 2022 and 2021 were $485,370 and $35,003, respectively. These amounts are for fees incurred to recover our judgment and were expensed to Legal fees on the Statements of Operations. |
Federal and State Income Taxes | Federal and State Income Taxes The Company uses the liability method of accounting for income taxes. Deferred tax assets and liabilities are recorded for tax loss carryforwards and temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company did not meet the qualifications of a RIC for the 2021 tax year and was taxed as a corporation under Subchapter C of the Internal Revenue Code of 1986 (the “Code”). The failure to qualify as a RIC, however, did not impact the 2021 tax year as the Company had net operating losses and no realized gains in the tax year. Further, the Company has net operating losses and capital losses from prior years it can carry forward to offset taxable income. The Company does not expect to meet the qualifications of a RIC for the 2022 tax year and is likely to be taxed as a corporation under Subchapter C of the Code. However, in the event that the Company does meet the qualifications of a RIC for the 2022 tax year, it may not be in the best interests of the Company’s stockholders to elect to be taxed as a RIC for the 2022 tax year due to the net operating losses and capital loss carryforwards the Company currently has. Management will make a determination that is in the best interests of the Company and its stockholders. In order to qualify as a RIC, among other things, the Company is required to distribute to its stockholders on a timely basis at least 90% of investment company taxable income, as defined by the Code, for each year. If the Company achieves its status as a RIC, it generally will not pay corporate-level U.S. federal and state income taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. Rather, any tax liability related to income earned by the Company will represent obligations of the Company’s investors and will not be reflected in the financial statements of the Company. The Company evaluates tax positions taken or expected to be taken while preparing its financial statements to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. The Company recognizes the tax benefits of uncertain tax positions only where the position has met the “more-likely-than-not” threshold. The Company classifies penalties and interest associated with income taxes, if any, as income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analyses of tax laws, regulations and interpretations thereof. |
Dividends and Distributions | Dividends and Distributions Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount, if any, to be paid as a dividend is approved by our board of directors each quarter and is generally based upon our management’s estimate of our earnings for the quarter. For the three and nine months ended September 30, 2022 and 2021, no dividends have been declared or distributed to stockholders. As disclosed in the Company’s Form 8-K that was filed on October 27, 2022, the Board of Directors has authorized and declared a cash dividend of $0.075 per share of common stock payable on December 1, 2022 to stockholders of record as of the close of business on November 21, 2022. |
Per Share Information | Per Share Information Basic and diluted earnings (loss) per common share is calculated using the weighted average number of common shares outstanding for the period presented. Basic earnings (loss) per share is computed by dividing earnings (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net earnings (loss) per share is computed by dividing net earnings (loss) per share by the weighted average number of shares outstanding, plus, any potentially dilutive shares outstanding during the period. For the three and nine months ended September 30, 2022 and 2021, basic and diluted earnings (loss) per share were the same, since there were no potentially dilutive securities outstanding. |
Capital Accounts | Capital Accounts Certain capital accounts including undistributed net investment income, accumulated net realized gain or loss, accumulated net unrealized gain or loss, and paid-in capital in excess of par, are adjusted, at least annually, for permanent differences between book and tax. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2020, the SEC adopted rule amendments that will impact the requirements of investment companies, including BDCs, to disclose the financial statements of certain of their portfolio companies or certain acquired funds (the “Final Rules”). The Final Rules adopted a new definition of “significant subsidiary” set forth in Rule 1-02(w)(2) of Regulation S-X under the Securities Act. Rules 3-09 and 4-08(g) of Regulation S-X require investment companies to include separate financial statements or summary financial information, respectively, in such investment company’s periodic reports for any portfolio company that meets the definition of “significant subsidiary.” The Final Rules adopt a new definition of “significant subsidiary” applicable only to investment companies that (i) modifies the investment test and the income test, and (ii) eliminates the asset test currently in the definition of “significant subsidiary” in Rule 1-02(w) of Regulation S-X. The new Rule 1-02(w)(2) of Regulation S-X is intended to more accurately capture those portfolio companies that are more likely to materially impact the financial condition of an investment company. The Final Rules were effective on January 1, 2021. The adoption resulted in no change to the Company’s disclosures of unconsolidated significant subsidiaries. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of cash and restricted cash reporting statements of assets and liabilities | September 30, December 31, 2022 2021 Cash and Cash Equivalents $ 187,979 $ 523,815 Restricted Cash 40,624 40,586 Total Cash, Cash Equivalents and Restricted Cash $ 228,603 $ 564,401 |
Net Increase (Decrease) in Ne_2
Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net increase (decrease) in net assets resulting from operations per common share | Three Months Ended Nine months Ended 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Per Share Data (1) Net increase (decrease) in net assets resulting from operations $ 6,983,091 $ (1,674,118 ) $ 5,722,385 $ 10,252,981 Weighted average shares outstanding for period Basic 120,486,061 120,486,061 120,486,061 120,486,061 Diluted 120,486,061 120,486,061 120,486,061 120,486,061 Basic and diluted net increase (decrease) in net assets resulting from operations per common share Basic $ 0.058 $ (0.014 ) $ 0.047 $ 0.085 Diluted $ 0.058 $ (0.014 ) $ 0.047 $ 0.085 (1) Per share data based on weighted average shares outstanding. |
Fair Value of Investments (Tabl
Fair Value of Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value of Investments [Abstract] | |
Schedule of company’s assets measured at fair value | As of September 30, 2022 Level 1 Level 2 Level 3 Total Portfolio Investments First Lien Loans $ - $ - $ 23,567,755 $ 23,567,755 Second Lien Loans - - 11,364,044 11,364,044 Equity - - 5,840,260 5,840,260 Total Portfolio Investments - - 40,772,059 40,772,059 Total Investments $ $ - $ 40,772,059 $ 40,772,059 As of December 31, 2021 Level 1 Level 2 Level 3 Total Portfolio Investments First Lien Loans $ - $ - $ 19,400,200 $ 19,400,200 Second Lien Loans - - 11,435,134 11,435,134 Equity - - 3,471,758 3,471,758 Total Portfolio Investments - - 34,307,092 34,307,092 Total Investments $ $ - $ 34,307,092 $ 34,307,092 |
Schedule of changes in level 3 assets measured at fair value | First Lien Loans Second Lien Loans Unsecured Loans Equity Total Fair value at beginning of period $ 19,400,200 $ 11,435,134 $ - $ 3,471,758 $ 34,307,092 Amortization - - - - - Purchases of investments - - - - - Sales or repayment of investments - - - - - Payment-in-kind interest - - - - - Change in unrealized gain (loss) on investments 4,009,396 87,069 - 2,368,502 6,464,967 Transfers in/out (1) 158,159 (158,159 ) Fair value at end of period $ 23,567,755 $ 11,364,044 $ - $ 5,840,260 $ 40,772,059 Change in unrealized gain (loss) on Level 3 investments still held as of September 30, 2022 $ 4,167,555 $ (71,090 ) $ - $ 2,368,502 $ 6,464,967 First Lien Loans Second Lien Loans Unsecured Loans Equity Total Fair value at beginning of year $ 14,671,435 $ 5,235,708 $ - $ 1,659,880 $ 21,567,023 Purchases of investments - - - - - Sales or repayment of investments (230,570 ) - - - (230,570 ) Payment-in-kind interest 97,401 - - - 97,401 Realized gain (loss) on investments - - - - - Change in unrealized gain (loss) on investments 4,861,934 6,199,426 - 1,811,878 12,873,238 Transfer due to restructuring - - - - - Fair value at end of year $ 19,400,200 $ 11,435,134 $ - $ 3,471,758 $ 34,307,092 Change in unrealized gain (loss) on Level 3 investments still held as of December 31, 2021 $ 4,861,934 $ 6,199,426 $ - $ 1,811,878 $ 12,873,238 |
Schedule of quantitative information regarding Level 3 fair value measurements | Description Fair Value Valuation Technique (1) Unobservable Inputs Range (Average (2) First Lien Loans $ 11,372,699 Settlement Recovery Market Yield 7.61%-9.85% (8.73%) 11,988,243 Enterprise Value Coverage EV / Store level EBITDAR 4.75x-5.25x (5.00x) Location Value $1,450,000-$1,650,000 ($1,550,000) Total 23,360,942 Second Lien Loans 11,364,044 Enterprise Value Coverage EV / LTM Revenue 0.40x-0.45x (0.43x) EV / PF EBITDA 5.25x-6.25x (5.75x) Total 11,364,044 Unsecured Loans - Enterprise Value Coverage EV / LTM Revenue 0.40x-0.45x (0.43x) Total - Equity 4,113,013 Enterprise Value Coverage EV / LTM Revenue 0.40x-0.45x (0.43x) EV / PF EBITDA 5.25x-6.25x (5.75x) EV / Store level EBITDAR 4.25x-4.75x (5.00x) Location Value $1,450,000-$1,650,000 ($1,550,000) 1,726,047 Appraisal Value Coverage Cost Approach $1,467,000-$1,793,000 ($1,630,000) Sales Comparison Approach $1,404,000-$1,716,000 ($1,560,000) Total 5,839,060 Total Level 3 Investments $ 40,564,046 Description Fair Value Valuation Technique (1) Unobservable Inputs Range (Average (2) First Lien Loans $ 4,854,720 Discounted Cash Flow Discount Rate 55.00%-65.00% (60.00%) Judgment Recovery Recovery Rate 40.00%-60.00% (50.00%) Judgment + Penalty Recovery Recovery Rate 40.00%-60.00% (50.00%) Zero Recovery Recovery Rate 0.00%-0.00% (0.00%) 14,545,480 Enterprise Value Coverage EV / Store level EBITDAR 4.75x-5.25x (5.00x) Location Value $1,275,000-$1,375,000 ($1,325,000) Total 19,400,200 Second Lien Loans 11,435,134 Enterprise Value Coverage EV / RR Revenue Multiple 0.48x-0.53x (0.50x) EV / 2021 Revenue 0.60-0.70x (0.65x) EV / CFY EBITDA 7.50x-8.50x (8.00x) EV / CFY Revenue 0.95x-1.05x (1.00x) Pending Sale Approach Weight 35.40%-35.40% (35.40%) Total 11,435,134 Unsecured Loans - Enterprise Value Coverage EV / RR Revenue Multiple 0.48x-0.53x (0.50x) Total - Equity 1,725,445 Enterprise Value Coverage EV / RR Revenue Multiple 0.48x-0.53x (0.50x) EV / 2021 Revenue 0.60x-0.70x (0.65x) EV / CFY EBITDA 7.50x-8.50x (8.00x) EV / CFY Revenue 0.95x-1.05x (1.00x) EV / STORE LEVEL EBITDAR 4.75x-5.25x (5.00x) Location Value $1,275,000-$1,375,000 ($1,325,000) Pending Sale Approach Weight 35.40%-35.40% (35.40%) 1,745,113 Appraisal Value Coverage Cost Approach $1,458,000-$1,782,000 ($1,620,000) Sales Comparison Approach $1,350,000-$1,650,000 ($1,500,000) Total 3,470,558 Total Level 3 Investments $ 34,305,892 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of asset-based fee | Gross Assets Fee first $150 million of gross assets 20 basis points (0.20%) next $150 million of gross assets 15 basis points (0.15%) next $200 million of gross assets 10 basis points (0.10%) in excess of $500 million of gross assets 5 basis points (0.05%) |
Financial Highlights (Tables)
Financial Highlights (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investment Company, Financial Highlights [Abstract] | |
Schedule of financial highlights | Three Months Ended Three Months Ended September 30, September 30, (Unaudited) (Unaudited) Per Share Data (1) Net asset value at beginning of period $ 0.276 $ 0.286 Net investment loss (0.002 ) - Change in unrealized gain (loss) 0.060 (0.014 ) Net asset value at end of period $ 0.334 $ 0.272 Total return based on net asset value (2) 21.0 % (4.9 )% Weighted average shares outstanding for period, basic 120,486,061 120,486,061 Ratio/Supplemental Data: Net assets at end of period $ 40,195,377 $ 32,732,521 Average net assets $ 33,288,189 $ 34,388,442 Ratio of net operating expenses to average net assets (3) 8.4 % 4.6 % Ratio of net operating expenses excluding management fees, incentive fees, and interest expense to average net assets (3) 7.4 % 3.8 % Ratio of net investment loss to average net assets (3) (3.2 )% (0.5 )% Ratio of net investment loss to average net assets, excluding other income from non-investment sources (3) (3.2 )% (0.5 )% Ratio of net increase (decrease) in net assets resulting from operations to average net assets (3) 83.2 % (19.3 )% Portfolio Turnover 0.0 % 0.40 % Nine Months Ended Nine Months Ended September 30, September 30, (Unaudited) (Unaudited) Per Share Data (1) Net asset value at beginning of period $ 0.286 $ 0.187 Net investment loss (0.006 ) (0.005 ) Change in unrealized gain (loss) 0.054 0.090 Net asset value at end of period $ 0.334 $ 0.272 Total return based on net asset value (2) 16.8 % 45.5 % Weighted average shares outstanding for period, basic 120,486,061 120,486,061 Ratio/Supplemental Data: Net assets at end of period $ 40,195,377 $ 32,732,521 Average net assets $ 33,703,681 $ 27,905,393 Ratio of net operating expenses to average net assets (3) 7.3 % 5.6 % Ratio of net operating expenses excluding management fees, incentive fees, and interest expense to average net assets (3) 6.3 % 4.7 % Ratio of net investment loss to average net assets (3) (2.9 )% (3.1 )% Ratio of net investment loss to average net assets, excluding other income from non-investment sources (3) (2.9 )% (3.1 )% Ratio of net increase in net assets resulting from operations to average net assets (3) 22.7 % 49.1 % Portfolio Turnover 0.0 % 0.47 % Year Ended December 31, 2021 2020 2019 2018 2017 Per Share Data (1) Net asset value at beginning of year $ 0.187 $ 0.276 $ 0.345 $ 0.344 $ 0.365 Net investment income (loss) (0.007 ) (0.005 ) (0.009 ) 0.009 0.008 Change in unrealized gain (loss) 0.106 (0.022 ) (0.060 ) (0.007 ) (0.035 ) Realized gain (loss) - (0.062 ) - (0.001 ) 0.006 Net asset value at end of year $ 0.286 $ 0.187 $ 0.276 $ 0.345 $ 0.344 Total return based on net asset value (2) 52.9 % (32.60 )% (20.0 )% 0.3 % (5.8 )% Weighted average shares outstanding for year, basic 120,486,061 120,486,061 120,486,061 120,486,061 120,486,061 Ratio/Supplemental Data: Net assets at end of year $ 34,472,992 $ 22,479,540 $ 33,280,329 $ 41,554,951 $ 41,407,539 Average net assets $ 29,126,862 $ 25,276,013 $ 38,504,249 $ 41,416,562 $ 42,634,685 Total operating expenses to average net assets 6.0 % 6.2 % 5.8 % 5.4 % 3.8 % Net operating expenses to average net assets (4) 6.0 % 6.2 % 5.8 % 5.4 % 3.3 % Net operating expenses excluding management fees, incentive fees, and interest expense to average net assets 5.1 % 5.2 % 4.9 % 4.3 % 2.8 % Net operating expenses excluding management fees, incentive fees, and interest expense to average net assets, excluding management fee waiver 5.1 % 5.2 % 4.9 % 4.3 % 3.2 % Net investment income (loss) to average net assets (3.0 )% (2.7 )% (2.8 )% 2.5 % 2.4 % Net investment income (loss) to average net assets, excluding management fee waiver (3.0 )% (2.7 )% (2.8 )% 2.5 % 1.9 % Net investment income (loss) to average net assets, excluding other income from non-investment sources (3.0 )% (3.0 )% (2.8 )% 2.5 % 0.1 % Net investment income (loss) to average net assets, excluding other income from non-investment sources, excluding management fee waiver (5) (3.0 )% (3.0 )% (2.8 )% 2.5 % (0.4 )% Net increase (decrease) in net assets resulting from operations to average net assets 41.2 % (42.7 )% (21.5 )% 0.4 % (6.0 )% Portfolio Turnover 0.4 % 0.4 % 0.7 % 0.5 % 7.0 % (1) Financial highlights are based on weighted average shares outstanding. (2) Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in the period. The total returns are not annualized. (3) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses are not annualized. For the three and nine months ended September 30, 2022 and 2021, the Company did not exclude any non-recurring expenses. Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios. (4) Net operating expenses includes a management fee waiver in the amount of $216,559 for the year ended December 31, 2017. (5) Other income from non-investment sources only includes the reduction of previously accrued expenses totaling $968,256 for the year ended December 31, 2017. |
Unconsolidated Significant Su_2
Unconsolidated Significant Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Unconsolidated Significant Subsidiaries [Abstract] | |
Schedule of summarized financial information | Rockfish Seafood Grill, Inc. Nine months Nine months (unaudited) (unaudited) Income Statement Net Revenue $ 13,091 $ 13,931 Gross Profit $ 9,031 $ 9,813 Net Income (Loss) $ 384 $ 1,265 |
Schedule 12-14 (Tables)
Schedule 12-14 (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of fair value of control and affiliate investments | Portfolio Company/Type of Investment (1) Principal Amount of Fair Value at Purchases (2) Sales Transfers Change in Fair Value at Control Investments Advantis Certified Staffing Solutions, Inc. Second Lien Loan, 12.0% Cash, due 11/30/2021 (3) $ 4,500,000 $ - $ 4,441,765 $ - $ - $ - $ (397,721 ) $ 4,044,044 Unsecured loan Consolidated BL Note 6.33% due 12/31/2022 $ 1,381,586 65,411 - - - - - - Common Stock – Series A (3) 225,000 - - - - - - - Common Stock – Series B (3) 9,500,000 - - - - - - - Warrant for 250,000 Shares of Series A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - - Warrant for 700,000 Shares of Series A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - - Dominion Medical Management, Inc. First Lien Loan, 12.0% Cash, 6% PIK due, 3/31/2020 (2) (3) $ 1,516,144 - 158,159 - - - 48,654 206,813 Integrated Medical Partners, LLC Preferred Membership – Class A units (3) 800 - - - - - - - Preferred Membership – Class B units (3) 760 - - - - - - - Common Units (3) 14,082 - - - - - - - PCC SBH Sub, Inc. Common Stock (3) 100 - 1,745,113 - - - (19,066 ) 1,726,047 Rockfish Seafood Grill, Inc. First Lien Loan, 8% Cash, 6.0% PIK, due 3/31/2018 $ 6,352,944 413,463 12,294,480 - - - (2,557,237 ) 9,737,243 Revolving Loan, 8% PIK, due 12/31/2022 $ 2,251,000 91,541 2,251,000 - - - - 2,251,000 Rockfish Holdings, LLC Warrant for Membership Interest, exercise price $0.001 per 1% membership interest, expires 7/28/2028 (3) 10.0 % - 172,549 - - - (172,549 ) - Membership Interest – Class A (3) 99.997 % - 1,552,896 - - - (1,552,896 ) - Total Control Investments $ 570,415 $ 22,615,962 $ - $ - $ - $ (4,650,815 ) $ 17,965,147 Portfolio Company/Type of Investment (1) Principal Amount of Fair Value at Purchases (2) Sales Change in Fair Value at Control Investments Advantis Certified Staffing Solutions, Inc. Second Lien Loan, 12.0% Cash, due 11/30/2021 (3) $ 4,500,000 $ - $ 3,008,208 $ - $ - $ 1,507,113 $ 4,515,321 Unsecured loan Consolidated BL Note 6.33% due 12/31/2021 $ 1,381,586 65,411 - - - - - Common Stock – Series A (3) 225,000 - - - - - - Common Stock – Series B (3) 9,500,000 - - - - - - Warrant for 250,000 Shares ofSeries A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - Warrant for 700,000 Shares of Series A Common Stock, exercise price $0.01 per share, expires 1/1/2027 (3) 1 - - - - - - Dominion Medical Management, Inc. Second Lien Loan, 12.0% Cash, 6% PIK due, 3/31/2020 (2) (3) $ 1,516,144 - - - - - - Integrated Medical Partners, LLC Preferred Membership – Class A units (3) 800 - - - - - - Preferred Membership – Class B units (3) 760 - - - - - - Common Units (3) 14,082 - - - - - - PCC SBH Sub, Inc. Common Stock (3) 100 - 1,658,680 - - 102,441 1,761,121 Rockfish Seafood Grill, Inc. First Lien Loan, 8% Cash, 6.0% PIK, due 3/31/2018 (3) $ 6,352,944 - 6,910,188 - - 5,072,136 11,982,324 Revolving Loan, 8% Cash, due 12/31/2021 $ 2,251,000 429,381 2,703,315 97,401 (230,570 ) (319,146 ) 2,251,000 Rockfish Holdings, LLC Warrant for Membership Interest, exercise price $0.001 per 1% membership interest, expires 7/28/2028 (3) 10.000 % - - - - 311,946 311,946 Membership Interest – Class A (3) 99.997 % - - - - 2,807,427 2,807,427 Total Control Investments $ 494,792 $ 14,280,391 $ 97,401 $ (230,570 ) $ 9,481,917 $ 23,629,139 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 01, 2022 | |
Significant Accounting Policies (Details) [Line Items] | |||||
Other income from non-control/non-affiliate investments | $ 6,064 | $ 6,064 | $ 17,996 | $ 17,996 | |
Other income from non-investments sources | $ 17 | $ 21 | 55 | 85 | |
Incurred legal fees | 0 | 14,423 | |||
Received amount | $ 485,370 | $ 35,003 | |||
Investment percentage | 90% | ||||
Minimum [Member] | Investment [Member] | |||||
Significant Accounting Policies (Details) [Line Items] | |||||
Percentage of voting interest | 5% | 5% | |||
Maximum [Member] | Investment [Member] | |||||
Significant Accounting Policies (Details) [Line Items] | |||||
Percentage of voting interest | 25% | 25% | |||
Subsequent Event [Member] | |||||
Significant Accounting Policies (Details) [Line Items] | |||||
Cash dividend declared (in Dollars per share) | $ 0.075 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of reconciliation of cash and restricted cash reporting statements of assets and liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Schedule Of Reconciliation Of Cash And Restricted Cash Reporting Statements Of Assets And Liabilities Abstract | |||
Cash and Cash Equivalents | $ 187,979 | $ 523,815 | |
Restricted Cash | 40,624 | 40,586 | $ 40,574 |
Total Cash, Cash Equivalents and Restricted Cash | $ 228,603 | $ 564,401 | $ 979,861 |
Net Increase (Decrease) in Ne_3
Net Increase (Decrease) in Net Assets Resulting from Operations per Common Share (Details) - Schedule of basic and diluted net increase (decrease) in net assets resulting from operations per common share - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||
Per Share Data (1): | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | [1] | $ 6,983,091 | $ (1,674,118) | $ 5,722,385 | $ 10,252,981 | |||||||||
Weighted average shares outstanding for period | ||||||||||||||
Basic | [2] | 120,486,061 | [1] | 120,486,061 | [1] | 120,486,061 | [1] | 120,486,061 | [1] | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 |
Diluted | [1] | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 | |||||||||
Basic and diluted net increase (decrease) in net assets resulting from operations per common share | ||||||||||||||
Basic | [1] | $ 0.058 | $ (0.014) | $ 0.047 | $ 0.085 | |||||||||
Diluted | [1] | $ 0.058 | $ (0.014) | $ 0.047 | $ 0.085 | |||||||||
[1]Per share data based on weighted average shares outstanding.[2] Financial highlights are based on weighted average shares outstanding. |
Fair Value of Investments (Deta
Fair Value of Investments (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value of Investments [Abstract] | ||
Third party transactions | $ 1,200 | $ 1,200 |
Investment | $ 206,813 |
Fair Value of Investments (De_2
Fair Value of Investments (Details) - Schedule of company’s assets measured at fair value - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Portfolio Investments | ||
First Lien Loans | $ 23,567,755 | $ 19,400,200 |
Second Lien Loans | 11,364,044 | 11,435,134 |
Equity | 5,840,260 | 3,471,758 |
Total Portfolio Investments | 40,772,059 | 34,307,092 |
Total Investments | 40,772,059 | 34,307,092 |
Level 1 [Member] | ||
Portfolio Investments | ||
First Lien Loans | ||
Second Lien Loans | ||
Equity | ||
Total Portfolio Investments | ||
Total Investments | ||
Level 2 [Member] | ||
Portfolio Investments | ||
First Lien Loans | ||
Second Lien Loans | ||
Equity | ||
Total Portfolio Investments | ||
Total Investments | ||
Level 3 [Member] | ||
Portfolio Investments | ||
First Lien Loans | 23,567,755 | 19,400,200 |
Second Lien Loans | 11,364,044 | 11,435,134 |
Equity | 5,840,260 | 3,471,758 |
Total Portfolio Investments | 40,772,059 | 34,307,092 |
Total Investments | $ 40,772,059 | $ 34,307,092 |
Fair Value of Investments (De_3
Fair Value of Investments (Details) - Schedule of changes in level 3 assets measured at fair value - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | ||
Fair Value of Investments (Details) - Schedule of changes in level 3 assets measured at fair value [Line Items] | |||
Fair value at beginning balance | $ 34,307,092 | $ 21,567,023 | |
Amortization | |||
Purchases of investments | |||
Sales or repayment of investments | (230,570) | ||
Payment-in-kind interest | 97,401 | ||
Realized gain (loss) on investments | |||
Change in unrealized gain (loss) on investments | 6,464,967 | 12,873,238 | |
Transfer due to restructuring | |||
Transfers in/out | [1] | ||
Fair value at end balance | 40,772,059 | 34,307,092 | |
Change in unrealized gain (loss) on Level 3 investments still held | 6,464,967 | 12,873,238 | |
First Lien Loans [Member] | |||
Fair Value of Investments (Details) - Schedule of changes in level 3 assets measured at fair value [Line Items] | |||
Fair value at beginning balance | 19,400,200 | 14,671,435 | |
Amortization | |||
Purchases of investments | |||
Sales or repayment of investments | (230,570) | ||
Payment-in-kind interest | 97,401 | ||
Realized gain (loss) on investments | |||
Change in unrealized gain (loss) on investments | 4,009,396 | 4,861,934 | |
Transfer due to restructuring | |||
Transfers in/out | [1] | 158,159 | |
Fair value at end balance | 23,567,755 | 19,400,200 | |
Change in unrealized gain (loss) on Level 3 investments still held | 4,167,555 | 4,861,934 | |
Second Lien Loans [Member] | |||
Fair Value of Investments (Details) - Schedule of changes in level 3 assets measured at fair value [Line Items] | |||
Fair value at beginning balance | 11,435,134 | 5,235,708 | |
Amortization | |||
Purchases of investments | |||
Sales or repayment of investments | |||
Payment-in-kind interest | |||
Realized gain (loss) on investments | |||
Change in unrealized gain (loss) on investments | 87,069 | 6,199,426 | |
Transfer due to restructuring | |||
Transfers in/out | [1] | (158,159) | |
Fair value at end balance | 11,364,044 | 11,435,134 | |
Change in unrealized gain (loss) on Level 3 investments still held | (71,090) | 6,199,426 | |
Unsecured Loans [Member] | |||
Fair Value of Investments (Details) - Schedule of changes in level 3 assets measured at fair value [Line Items] | |||
Fair value at beginning balance | |||
Amortization | |||
Purchases of investments | |||
Sales or repayment of investments | |||
Payment-in-kind interest | |||
Realized gain (loss) on investments | |||
Change in unrealized gain (loss) on investments | |||
Transfer due to restructuring | |||
Transfers in/out | [1] | ||
Fair value at end balance | |||
Change in unrealized gain (loss) on Level 3 investments still held | |||
Equity [Member] | |||
Fair Value of Investments (Details) - Schedule of changes in level 3 assets measured at fair value [Line Items] | |||
Fair value at beginning balance | 3,471,758 | 1,659,880 | |
Amortization | |||
Purchases of investments | |||
Sales or repayment of investments | |||
Payment-in-kind interest | |||
Realized gain (loss) on investments | |||
Change in unrealized gain (loss) on investments | 2,368,502 | 1,811,878 | |
Transfer due to restructuring | |||
Transfers in/out | [1] | ||
Fair value at end balance | 5,840,260 | 3,471,758 | |
Change in unrealized gain (loss) on Level 3 investments still held | $ 2,368,502 | $ 1,811,878 | |
[1]The Company’s investment in Dominion Medical Management, Inc. changed from a second lien loan to a first lien loan in the third quarter of 2022. |
Fair Value of Investments (De_4
Fair Value of Investments (Details) - Schedule of quantitative information regarding Level 3 fair value measurements - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 40,564,046 | $ 34,305,892 | |||
First Lien Loans [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 11,372,699 | $ 4,854,720 | |||
Valuation Technique | Settlement Recovery | [1] | Discounted Cash Flow | [2] | |
Unobservable Inputs | Market Yield | Discount Rate | |||
Range Average | [3] | 7.61%-9.85% (8.73%) | 55.00%-65.00% (60.00%) | ||
First Lien Loans 1 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 11,988,243 | ||||
Valuation Technique | Enterprise Value Coverage | [1] | Judgment Recovery | [2] | |
Unobservable Inputs | EV / Store level EBITDAR | Recovery Rate | |||
Range Average | [3] | 4.75x-5.25x (5.00x) | 40.00%-60.00% (50.00%) | ||
First Lien Loans 2 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Valuation Technique | [2] | Judgment + Penalty Recovery | |||
Unobservable Inputs | Location Value | Recovery Rate | |||
Range Average | [3] | $1,450,000-$1,650,000 ($1,550,000) | 40.00%-60.00% (50.00%) | ||
First Mortgage [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 23,360,942 | $ 19,400,200 | |||
Second Lien Loans [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 11,364,044 | $ 11,435,134 | |||
Valuation Technique | Enterprise Value Coverage | [1] | Enterprise Value Coverage | [2] | |
Unobservable Inputs | EV / LTM Revenue | EV / RR Revenue Multiple | |||
Range Average | [3] | 0.40x-0.45x (0.43x) | 0.48x-0.53x (0.50x) | ||
Second Lien Loans 1 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | EV / PF EBITDA | EV / 2021 Revenue | |||
Range Average | [3] | 5.25x-6.25x (5.75x) | 0.60-0.70x (0.65x) | ||
Second Mortgage [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 11,364,044 | $ 11,435,134 | |||
Unsecured Loans [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | |||||
Valuation Technique | Enterprise Value Coverage | [1] | Enterprise Value Coverage | [2] | |
Unobservable Inputs | EV / LTM Revenue | EV / RR Revenue Multiple | |||
Range Average | [3] | 0.40x-0.45x (0.43x) | 0.48x-0.53x (0.50x) | ||
Equity Interest [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 4,113,013 | $ 3,470,558 | |||
Valuation Technique | [1] | Enterprise Value Coverage | |||
Unobservable Inputs | EV / LTM Revenue | ||||
Range Average | [3] | 0.40x-0.45x (0.43x) | |||
Equity [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 1,725,445 | ||||
Valuation Technique | [2] | Enterprise Value Coverage | |||
Unobservable Inputs | EV / PF EBITDA | EV / RR Revenue Multiple | |||
Range Average | [3] | 5.25x-6.25x (5.75x) | 0.48x-0.53x (0.50x) | ||
Equity 1 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | EV / Store level EBITDAR | EV / 2021 Revenue | |||
Range Average | [3] | 4.25x-4.75x (5.00x) | 0.60x-0.70x (0.65x) | ||
Equity 2 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | Location Value | EV / CFY EBITDA | |||
Range Average | [3] | $1,450,000-$1,650,000 ($1,550,000) | 7.50x-8.50x (8.00x) | ||
Equity 3 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 1,726,047 | ||||
Valuation Technique | [1] | Appraisal Value Coverage | |||
Unobservable Inputs | Cost Approach | EV / CFY Revenue | |||
Range Average | [3] | $1,467,000-$1,793,000 ($1,630,000) | 0.95x-1.05x (1.00x) | ||
Equity 4 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | Sales Comparison Approach | EV / STORE LEVEL EBITDAR | |||
Range Average | [3] | $1,404,000-$1,716,000 ($1,560,000) | 4.75x-5.25x (5.00x) | ||
Equity 5 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 5,839,060 | ||||
Unobservable Inputs | Location Value | ||||
Range Average | [3] | $1,275,000-$1,375,000 ($1,325,000) | |||
First Lien Loans 3 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Valuation Technique | [2] | Zero Recovery | |||
Unobservable Inputs | Recovery Rate | ||||
Range Average | [3] | 0.00%-0.00% (0.00%) | |||
First Lien Loans 4 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 14,545,480 | ||||
Valuation Technique | [2] | Enterprise Value Coverage | |||
Unobservable Inputs | EV / Store level EBITDAR | ||||
Range Average | [3] | 4.75x-5.25x (5.00x) | |||
First Lien Loans 5 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | Location Value | ||||
Range Average | [3] | $1,275,000-$1,375,000 ($1,325,000) | |||
Second Lien Loans 2 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | EV / CFY EBITDA | ||||
Range Average | [3] | 7.50x-8.50x (8.00x) | |||
Second Lien Loans 3 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | EV / CFY Revenue | ||||
Range Average | [3] | 0.95x-1.05x (1.00x) | |||
Second Lien Loans 4 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Valuation Technique | [2] | Pending Sale | |||
Unobservable Inputs | Approach Weight | ||||
Range Average | [3] | 35.40%-35.40% (35.40%) | |||
Equity 6 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Valuation Technique | [2] | Pending Sale | |||
Unobservable Inputs | Approach Weight | ||||
Range Average | [3] | 35.40%-35.40% (35.40%) | |||
Equity 7 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair Value | $ 1,745,113 | ||||
Valuation Technique | [2] | Appraisal Value Coverage | |||
Unobservable Inputs | Cost Approach | ||||
Range Average | [3] | $1,458,000-$1,782,000 ($1,620,000) | |||
Equity 8 [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Unobservable Inputs | Sales Comparison Approach | ||||
Range Average | [3] | $1,350,000-$1,650,000 ($1,500,000) | |||
[1]The valuation technique for the Company's investment in a First Lien Loan changed to remove the Receiver Recovery, Bankruptcy Recovery and Zero Recovery techniques. The reason for the change was that the Company entered into a settlement agreement prior to the end of the quarter and received funds within a week subsequent to quarter end.[2]The valuation technique for the Company's investment in a First Lien Loan changed with addition of a Judgment Recovery, Judgment plus Penalty Recovery and Zero Recovery techniques. The reason for the change was the additional recovery options that presented itself in the fourth quarter. The valuation technique for the Company's investment in a Second Lien Loan and an Equity position changed with the addition of a Pending Sale technique. The reason for the change is that these investments are pending sale as of December 31, 2021.[3]The average represents the arithmetic average of the unobservable inputs and is not weighted by the relative fair value. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 06, 2021 | Apr. 29, 2021 | Jan. 01, 2018 | Nov. 02, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2017 | Oct. 26, 2022 | Dec. 31, 2021 | |
Related Party Transactions (Details) [Line Items] | |||||||||||
Annual rate percentage | 1% | ||||||||||
Management fees | $ 83,014 | $ 74,347 | $ 247,395 | $ 182,778 | $ 216,559 | ||||||
Management fee payable | 512,735 | 512,735 | $ 262,324 | ||||||||
Payment for management fee | $ 266,984 | $ 285,137 | $ 512,735 | ||||||||
Third party expenses incurred | 50,000 | ||||||||||
Asset based fee | $ 151,025 | ||||||||||
Administration fees | 67,500 | 67,500 | 202,500 | 202,500 | |||||||
Administration fees of payable | $ 270 | $ 202,500 | $ 440,625 | 472,500 | 472,500 | $ 273,016 | |||||
Adjustment in outstanding administration fees payable | $ 31,875 | ||||||||||
Advantis amount | 5,000 | 5,000 | |||||||||
Sub-administrator [Member] | |||||||||||
Related Party Transactions (Details) [Line Items] | |||||||||||
Administration fees | $ 37,757 | $ 34,143 | $ 106,043 | $ 97,967 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of asset-based fee | 9 Months Ended |
Sep. 30, 2022 | |
20 basis points (0.20%) [Member] | |
Related Party Transaction [Line Items] | |
Gross Assets | first $150 million of gross assets |
15 basis points (0.15%) [Member] | |
Related Party Transaction [Line Items] | |
Gross Assets | next $150 million of gross assets |
10 basis points (0.10%) [Member] | |
Related Party Transaction [Line Items] | |
Gross Assets | next $200 million of gross assets |
5 basis points (0.05%) [Member] | |
Related Party Transaction [Line Items] | |
Gross Assets | in excess of $500 million of gross assets |
Financial Highlights (Details)
Financial Highlights (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2017 | |
Investment Company, Financial Highlights [Abstract] | |||||
Management fee | $ 83,014 | $ 74,347 | $ 247,395 | $ 182,778 | $ 216,559 |
Accrued expenses | $ 968,256 |
Financial Highlights (Details)
Financial Highlights (Details) - Schedule of financial highlights - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||
Per Share Data (1): | ||||||||||||||
Net asset value at beginning of period (in Dollars per share) | [1] | $ 0.276 | $ 0.286 | $ 0.286 | $ 0.187 | $ 0.187 | $ 0.276 | $ 0.345 | $ 0.344 | $ 0.365 | ||||
Net investment loss (in Dollars per share) | [1] | (0.002) | (0.006) | (0.005) | (0.007) | (0.005) | (0.009) | 0.009 | 0.008 | |||||
Change in unrealized gain (loss) (in Dollars per share) | [1] | 0.06 | (0.014) | 0.054 | 0.09 | 0.106 | (0.022) | (0.06) | (0.007) | (0.035) | ||||
Realized gain (loss) (in Dollars per share) | [1] | (0.062) | (0.001) | 0.006 | ||||||||||
Net asset value at end of period (in Dollars per share) | [1] | $ 0.334 | $ 0.272 | $ 0.334 | $ 0.272 | $ 0.286 | $ 0.187 | $ 0.276 | $ 0.345 | $ 0.344 | ||||
Total return based on net asset value | [1],[2] | 21% | (4.90%) | 16.80% | 45.50% | 52.90% | (32.60%) | (20.00%) | 0.30% | (5.80%) | ||||
Weighted average shares outstanding for period, basic (in Shares) | [1] | 120,486,061 | [3] | 120,486,061 | [3] | 120,486,061 | [3] | 120,486,061 | [3] | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 | 120,486,061 |
Ratio/Supplemental Data: | ||||||||||||||
Net assets at end of period (in Dollars) | $ 40,195,377 | $ 32,732,521 | $ 40,195,377 | $ 32,732,521 | $ 34,472,992 | $ 22,479,540 | $ 33,280,329 | $ 41,554,951 | $ 41,407,539 | |||||
Average net assets (in Dollars) | $ 33,288,189 | $ 34,388,442 | $ 33,703,681 | $ 27,905,393 | [2] | $ 29,126,862 | $ 25,276,013 | $ 38,504,249 | $ 41,416,562 | $ 42,634,685 | ||||
Ratio of net operating expenses to average net assets | 8.40% | [4] | 4.60% | [4] | 7.30% | [4] | 5.60% | [4] | 6% | 6.20% | 5.80% | 5.40% | 3.80% | |
Net operating expenses to average net assets | [5] | 6% | 6.20% | 5.80% | 5.40% | 3.30% | ||||||||
Ratio of net operating expenses excluding management fees, incentive fees, and interest expense to average net assets | 7.40% | [4] | 3.80% | [4] | 6.30% | [4] | 4.70% | [4] | 5.10% | 5.20% | 4.90% | 4.30% | 2.80% | |
Net operating expenses excluding management fees, incentive fees, and interest expense to average net assets, excluding management fee waiver | 5.10% | 5.20% | 4.90% | 4.30% | 3.20% | |||||||||
Ratio of net investment loss to average net assets | (3.20%) | [4] | (0.50%) | [4] | (2.90%) | [4] | (3.10%) | [4] | (3.00%) | (2.70%) | (2.80%) | 2.50% | 2.40% | |
Net investment income (loss) to average net assets, excluding management fee waiver | (3.00%) | (2.70%) | (2.80%) | 2.50% | 1.90% | |||||||||
Ratio of net investment loss to average net assets, excluding other income from non-investment sources | (3.20%) | [4] | (0.50%) | [4] | (2.90%) | [4] | (3.10%) | [4] | (3.00%) | (3.00%) | (2.80%) | 2.50% | 0.10% | |
Net investment income (loss) to average net assets, excluding other income from non-investment sources, excluding management fee waiver | [6] | (3.00%) | (3.00%) | (2.80%) | 2.50% | (0.40%) | ||||||||
Ratio of net increase in net assets resulting from operations to average net assets | 83.20% | [4] | (19.30%) | [4] | 22.70% | [4] | 49.10% | [4] | 41.20% | (42.70%) | (21.50%) | 0.40% | (6.00%) | |
Portfolio Turnover | 0% | 0.40% | 0% | 0.47% | 0.40% | 0.40% | 0.70% | 0.50% | 7% | |||||
[1] Financial highlights are based on weighted average shares outstanding. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in the period. The total returns are not annualized. Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses are not annualized. For the three and nine months ended September 30, 2022 and 2021, the Company did not exclude any non-recurring expenses. Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios. Net operating expenses includes a management fee waiver in the amount of $216,559 for the year ended December 31, 2017. Other income from non-investment sources only includes the reduction of previously accrued expenses totaling $968,256 for the year ended December 31, 2017. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Mar. 04, 2021 | Oct. 07, 2022 | Sep. 30, 2022 | Mar. 21, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Settlement payment | $ 9,910,601 | $ 11,372,699 | ||
Bankruptcy court reserve | 15,000,000 | $ 15,000,000 | ||
Reserve retained | $ 1,000,000 | |||
Settlement received | $ 11,372,699 |
Unconsolidated Significant Su_3
Unconsolidated Significant Subsidiaries (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Unconsolidated Significant Subsidiaries (Details) [Line Items] | |
Unconsolidated significant subsidiaries description | if the Company owns more than 25% of the voting securities or is otherwise controlled by the Company and if the subsidiary investment value exceeds 10% of the Company’s total investments at fair value, the income from the subsidiary investment exceeds 80% of the Company’s change in net assets resulting from operations, or the income from the subsidiary investment exceeds 10% of the Company’s change in net assets resulting from operations and the subsidiary investment value exceeds 5% of the Company’s total investments at fair value. |
Investments [Member] | |
Unconsolidated Significant Subsidiaries (Details) [Line Items] | |
Unconsolidated significant subsidiaries description | The asset significant test was eliminated under the new rules. Rule 3.09 of Regulation S-X, as interpreted by the SEC, requires the Company to include separate audited financial statements of any unconsolidated majority-owned subsidiary in an annual report if the subsidiary investment value exceeds 20% of the Company’s total investments at fair value, the income from the subsidiary investment exceeds 80% of the Company’s change in net assets resulting from operations, or the income from the subsidiary investment exceeds 20% of the Company’s change in net assets resulting from operations and the subsidiary investment value exceeds 5% of the Company’s total investments at fair value. Rule 4-08(g) of Regulation S-X requires summarized financial information of an unconsolidated subsidiary in an annual report where the Company owns more than 25% of the voting securities or is otherwise controlled by the Company if it does not qualify under Rule 3.09 of Regulation S-X and if the subsidiary investment value exceeds 10% of the Company’s total investments at fair value, the income from the subsidiary investment exceeds 80% of the Company’s change in net assets resulting from operations, or the income from the subsidiary investment exceeds 10% of the Company’s change in net assets resulting from operations and the subsidiary investment value exceeds 5% of the Company’s total investments at fair value. |
Unconsolidated Significant Su_4
Unconsolidated Significant Subsidiaries (Details) - Schedule of summarized financial information - Rockfish Seafood Grill, Inc. [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement | ||
Net Revenue | $ 13,091 | $ 13,931 |
Gross Profit | 9,031 | 9,813 |
Net Income (Loss) | $ 384 | $ 1,265 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | 1 Months Ended | ||
Oct. 07, 2022 | Oct. 26, 2022 | Dec. 01, 2022 | |
Subsequent Events (Details) [Line Items] | |||
Settlement payment | $ 11,372,699 | ||
Subsequent event, description | On October 26, 2022, the Board of Directors accepted a proposal from the Company’s investment adviser, House Hanover, LLC, of an adjustment in the amount of $31,875 to reduce the outstanding amounts under Due to affiliates on the Statements of Assets and Liabilities for the allocation of Chief Compliance Officer administration fees. Further, the Board of Directors accepted a proposal of Chief Compliance Officer administration fees beginning October 1, 2022 to be allocated 65% to the Company and 35% to House Hanover, LLC. | ||
Cash dividend per share | $ 0.075 |
Schedule 12-14 (Details) - Sche
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments - Control Investments [Member] - USD ($) | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1] | $ 570,415 | $ 494,792 | ||||
Fair Value | [1] | 22,615,962 | 14,280,391 | ||||
Purchases | [1],[2] | 97,401 | |||||
Sales | [1] | (230,570) | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (4,650,815) | 9,481,917 | ||||
Fair Value | [1] | $ 17,965,147 | 23,629,139 | ||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | 44.70% | 65.61% | |||||
Amount of Interest and Dividends Credited in Income | [1] | $ 570,415 | 494,792 | ||||
Fair Value | [1] | 22,615,962 | 14,280,391 | ||||
Purchases | [1],[2] | 97,401 | |||||
Sales | [1] | (230,570) | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (4,650,815) | 9,481,917 | ||||
Fair Value | [1] | $ 17,965,147 | 23,629,139 | ||||
Advantis Certified Staffing Solutions, Inc. [Member] | |||||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | 10.06% | 12.89% | |||||
Advantis Certified Staffing Solutions, Inc. [Member] | Second Lien Loan [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Principal Amount/Shares/ Ownership % | $ 4,500,000 | [1],[3],[4],[5] | 4,500,000 | [1],[6] | $ 4,500,000 | [4],[5],[7] | |
Amount of Interest and Dividends Credited in Income | [1] | [6] | |||||
Fair Value | [1] | 4,441,765 | 3,008,208 | [6] | |||
Purchases | [1],[2] | [6] | |||||
Sales | [1] | [6] | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (397,721) | 1,507,113 | [6] | |||
Fair Value | [1] | $ 4,044,044 | 4,515,321 | [6] | |||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [4],[5] | 10.06% | [3] | 12.89% | [7] | ||
Amount of Interest and Dividends Credited in Income | [1] | [6] | |||||
Fair Value | [1] | 4,441,765 | 3,008,208 | [6] | |||
Purchases | [1],[2] | [6] | |||||
Sales | [1] | [6] | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (397,721) | 1,507,113 | [6] | |||
Fair Value | [1] | 4,044,044 | 4,515,321 | [6] | |||
Advantis Certified Staffing Solutions, Inc. [Member] | Unsecured Loans [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Principal Amount/Shares/ Ownership % | 1,381,586 | [1],[5] | 1,381,586 | [1] | $ 1,381,586 | [5] | |
Amount of Interest and Dividends Credited in Income | [1] | 65,411 | 65,411 | ||||
Fair Value | [1] | ||||||
Purchases | [1],[2] | ||||||
Sales | [1] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | ||||||
Fair Value | [1] | ||||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | ||||||
Amount of Interest and Dividends Credited in Income | [1] | $ 65,411 | 65,411 | ||||
Fair Value | [1] | ||||||
Purchases | [1],[2] | ||||||
Sales | [1] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | ||||||
Fair Value | [1] | ||||||
Advantis Certified Staffing Solutions, Inc. [Member] | Common Stock – Series A [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Principal Amount/Shares/ Ownership % (in Shares) | 225,000 | [1],[3],[5],[6] | 225,000 | [1],[6] | 225,000 | [5],[7] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | [3] | [7] | ||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Advantis Certified Staffing Solutions, Inc. [Member] | Common Stock – Series B [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Principal Amount/Shares/ Ownership % (in Shares) | 9,500,000 | [1],[3],[5],[6] | 9,500,000 | [1],[6] | 9,500,000 | [5],[7] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | [3] | [7] | ||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Advantis Certified Staffing Solutions, Inc. [Member] | Warrant [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Principal Amount/Shares/ Ownership % (in Shares) | 1 | [1],[3],[5],[6] | 1 | [1],[6] | 1 | [5],[7] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | [3] | [7] | ||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Advantis Certified Staffing Solutions, Inc. [Member] | Warrant One [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Principal Amount/Shares/ Ownership % (in Shares) | 1 | [1],[3],[5],[6] | 1 | [1],[6] | 1 | [5],[7] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | [3] | [7] | ||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Dominion Medical Management, Inc. [Member] | Second Lien Loan [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Principal Amount/Shares/ Ownership % | 1,516,144 | [1],[2],[6] | $ 1,516,144 | [4],[5],[7],[8] | |||
Amount of Interest and Dividends Credited in Income | [1],[2],[6] | ||||||
Fair Value | [1],[2],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[2],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[2],[6] | ||||||
Fair Value | [1],[2],[6] | ||||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [4],[5],[7],[8] | 0.46% | |||||
Amount of Interest and Dividends Credited in Income | [1],[2],[6] | ||||||
Fair Value | [1],[2],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[2],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[2],[6] | ||||||
Fair Value | [1],[2],[6] | ||||||
Dominion Medical Management, Inc. [Member] | First Lien Loans [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Principal Amount/Shares/ Ownership % | [1],[2],[6] | 1,516,144 | |||||
Amount of Interest and Dividends Credited in Income | [1],[2],[6] | ||||||
Fair Value | [1],[2],[6] | 158,159 | |||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[2],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[2],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[2],[6] | 48,654 | |||||
Fair Value | [1],[2],[6] | $ 206,813 | |||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | 0.52% | ||||||
Amount of Interest and Dividends Credited in Income | [1],[2],[6] | ||||||
Fair Value | [1],[2],[6] | 158,159 | |||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[2],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[2],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[2],[6] | 48,654 | |||||
Fair Value | [1],[2],[6] | $ 206,813 | |||||
Integrated Medical Partners, LLC [Member] | |||||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | 0.52% | 0.46% | |||||
Integrated Medical Partners, LLC [Member] | Preferred Membership, Class A units [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Principal Amount/Shares/ Ownership % (in Shares) | 800 | [1],[3],[5],[6] | 800 | [1],[6] | 800 | [5],[7] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | [3] | [7] | ||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Integrated Medical Partners, LLC [Member] | Preferred Membership, Class B units [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Principal Amount/Shares/ Ownership % (in Shares) | 760 | [1],[3],[5],[6] | 760 | [1],[6] | 760 | [5],[7] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | [3] | [7] | ||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Integrated Medical Partners, LLC [Member] | Common Units [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Principal Amount/Shares/ Ownership % (in Shares) | 14,082 | [1],[3],[5],[6] | 14,082 | [1],[6] | 14,082 | [3],[5] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [3],[5] | ||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
PCC SBH Sub, Inc. [Member] | Common Stock [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | 1,745,113 | 1,658,680 | ||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | (19,066) | 102,441 | ||||
Fair Value | [1],[6] | $ 1,726,047 | $ 1,761,121 | ||||
Principal Amount/Shares/ Ownership % (in Shares) | 100 | [1],[3],[5],[6] | 100 | [1],[6] | 100 | [3],[5] | |
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [3],[5] | 4.29% | 5.06% | ||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | 1,745,113 | 1,658,680 | ||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | (19,066) | 102,441 | ||||
Fair Value | [1],[6] | 1,726,047 | 1,761,121 | ||||
Rockfish Seafood Grill, Inc. [Member] | First Lien Loans [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Principal Amount/Shares/ Ownership % | 6,352,944 | [1],[5],[8] | 6,352,944 | [1],[6] | $ 6,352,944 | [4],[5],[7],[8] | |
Amount of Interest and Dividends Credited in Income | [1] | 413,463 | [6] | ||||
Fair Value | [1] | 12,294,480 | 6,910,188 | [6] | |||
Purchases | [1],[2] | [6] | |||||
Sales | [1] | [6] | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (2,557,237) | 5,072,136 | [6] | |||
Fair Value | [1] | $ 9,737,243 | 11,982,324 | [6] | |||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5],[8] | 24.23% | 35.66% | [4],[7] | |||
Amount of Interest and Dividends Credited in Income | [1] | $ 413,463 | [6] | ||||
Fair Value | [1] | 12,294,480 | 6,910,188 | [6] | |||
Purchases | [1],[2] | [6] | |||||
Sales | [1] | [6] | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (2,557,237) | 5,072,136 | [6] | |||
Fair Value | [1] | 9,737,243 | 11,982,324 | [6] | |||
Rockfish Seafood Grill, Inc. [Member] | Revolving Loan [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Principal Amount/Shares/ Ownership % | [5] | 2,251,000 | [1] | $ 2,251,000 | |||
Amount of Interest and Dividends Credited in Income | [1] | 91,541 | |||||
Fair Value | [1] | 2,251,000 | |||||
Purchases | [1],[2] | ||||||
Sales | [1] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | ||||||
Fair Value | [1] | $ 2,251,000 | |||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [5] | 5.60% | 6.53% | ||||
Amount of Interest and Dividends Credited in Income | [1] | $ 91,541 | |||||
Fair Value | [1] | 2,251,000 | |||||
Purchases | [1],[2] | ||||||
Sales | [1] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1] | ||||||
Change in Unrealized Gains/(Losses) | [1] | ||||||
Fair Value | [1] | $ 2,251,000 | |||||
Rockfish Seafood Grill, Inc. [Member] | Revolving Loan One [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Principal Amount/Shares/ Ownership % | [1] | 2,251,000 | |||||
Amount of Interest and Dividends Credited in Income | [1] | 429,381 | |||||
Fair Value | [1] | 2,703,315 | |||||
Purchases | [1],[2] | 97,401 | |||||
Sales | [1] | (230,570) | |||||
Change in Unrealized Gains/(Losses) | [1] | (319,146) | |||||
Fair Value | [1] | 2,251,000 | |||||
Rockfish Holdings, LLC | |||||||
Amount of Interest and Dividends Credited in Income | [1] | 429,381 | |||||
Fair Value | [1] | 2,703,315 | |||||
Purchases | [1],[2] | 97,401 | |||||
Sales | [1] | (230,570) | |||||
Change in Unrealized Gains/(Losses) | [1] | (319,146) | |||||
Fair Value | [1] | 2,251,000 | |||||
Rockfish Holdings, LLC [Member] | |||||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | 47.20% | ||||||
Rockfish Holdings, LLC [Member] | Warrant two [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1] | [6] | |||||
Fair Value | [1] | 172,549 | [6] | ||||
Purchases | [1],[2] | [6] | |||||
Sales | [1] | [6] | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (172,549) | [6] | 311,946 | |||
Fair Value | [1] | [6] | $ 311,946 | ||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [1] | 10% | [6] | 10% | |||
Amount of Interest and Dividends Credited in Income | [1] | [6] | |||||
Fair Value | [1] | 172,549 | [6] | ||||
Purchases | [1],[2] | [6] | |||||
Sales | [1] | [6] | |||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1] | (172,549) | [6] | 311,946 | |||
Fair Value | [1] | [6] | 311,946 | ||||
Rockfish Holdings, LLC [Member] | Memberships Interest Class A [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | 1,552,896 | |||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | (1,552,896) | |||||
Fair Value | [1],[6] | ||||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [1],[6] | 99.997% | |||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | 1,552,896 | |||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Transfers from Restructuring/ Transfers into Control Investments | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | (1,552,896) | |||||
Fair Value | [1],[6] | ||||||
Rockfish Holdings, LLC [Member] | Membership Interest – Class A [Member] | |||||||
Advantis Certified Staffing Solutions, Inc. | |||||||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | 2,807,427 | |||||
Fair Value | [1],[6] | $ 2,807,427 | |||||
Rockfish Holdings, LLC | |||||||
Principal Amount/Shares/ Ownership % | [3],[5] | 99.997% | [1],[6] | 4.51% | [5],[7] | ||
Amount of Interest and Dividends Credited in Income | [1],[6] | ||||||
Fair Value | [1],[6] | ||||||
Purchases | [1],[2],[6] | ||||||
Sales | [1],[6] | ||||||
Change in Unrealized Gains/(Losses) | [1],[6] | 2,807,427 | |||||
Fair Value | [1],[6] | $ 2,807,427 | |||||
[1]Represents an illiquid investment.[2]Includes PIK interest.[3]Investment is non-income producing as of September 30, 2022.[4]Investment is on non-accrual status.[5]Represents an investment valued using significant unobservable inputs.[6]Non-income producing security.[7]Investment is non-income producing as of December 31, 2021.[8]Represents a security with a payment-in-kind component (“PIK”). At the option of the issuer, interest can be paid in cash or cash and PIK. The percentage of PIK shown is the maximum PIK that can be elected by the portfolio company. |
Schedule 12-14 (Details) - Sc_2
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) - $ / shares | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment cash rate | 12% | ||
Advantis Certified Staffing Solutions, Inc. [Member] | Control Investments [Member] | Second Lien Loan [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment cash rate | [1] | 12% | 12% |
Investment maturity date | [1] | Nov. 30, 2021 | Nov. 30, 2021 |
Advantis Certified Staffing Solutions, Inc. [Member] | Control Investments [Member] | Unsecured Loans [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment cash rate | [1] | 6.33% | 6.33% |
Investment maturity date | [1] | Dec. 31, 2022 | Dec. 31, 2021 |
Advantis Certified Staffing Solutions, Inc. [Member] | Control Investments [Member] | Warrant [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment maturity date | [1] | Jan. 01, 2027 | Jan. 01, 2027 |
Investment warrant | [1] | 250,000 | 250,000 |
Investment exercise price | [1] | $ 0.01 | |
Advantis Certified Staffing Solutions, Inc. [Member] | Control Investments [Member] | Warrant One [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment maturity date | [1] | Jan. 01, 2027 | Jan. 01, 2027 |
Investment warrant | [1] | 700,000 | 700,000 |
Investment exercise price | [1] | $ 0.01 | $ 0.01 |
Immediate Family Member of Management or Principal Owner [Member] | Control Investments [Member] | Warrant [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment exercise price | [1] | $ 0.01 | |
Dominion Medical Management, Inc. [Member] | Control Investments [Member] | Second Lien Loan [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment cash rate | [1] | 12% | |
Investment maturity date | [1] | Mar. 31, 2020 | |
Investment payment in kind rate | [1] | 6% | |
Dominion Medical Management, Inc. [Member] | Control Investments [Member] | First Lien Loans [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment maturity date | [1] | Mar. 31, 2020 | |
Investment payment in kind rate | [1] | 6% | |
Rockfish Seafood Grill, Inc. [Member] | Control Investments [Member] | First Lien Loans [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment cash rate | [1] | 8% | 8% |
Investment maturity date | [1] | Mar. 31, 2018 | Mar. 31, 2018 |
Investment payment in kind rate | [1] | 6% | 6% |
Rockfish Seafood Grill, Inc. [Member] | Control Investments [Member] | Revolving Loan [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment cash rate | [1] | 8% | |
Investment maturity date | [1] | Dec. 31, 2022 | |
Rockfish Seafood Grill, Inc. [Member] | Control Investments [Member] | Revolving Loan One [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment cash rate | [1] | 8% | |
Investment maturity date | [1] | Dec. 31, 2021 | |
Rockfish Holdings, LLC [Member] | Control Investments [Member] | Warrant two [Member] | |||
Schedule 12-14 (Details) - Schedule of fair value of control and affiliate investments (Parentheticals) [Line Items] | |||
Investment maturity date | [1] | Jul. 28, 2028 | Jul. 28, 2028 |
Investment exercise price | [1] | $ 0.001 | $ 0.001 |
Invesment membership interest rate | [1] | 1% | 1% |
[1]Represents an illiquid investment. |