FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2021

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of fair value measurements of our investments by major class according to the fair value hierarchy

The following table presents the fair value measurements of our investments by major class, as of September 30, 2021, according to the fair value hierarchy:

	As of September 30, 2021
	Level 1		Level 2		Level 3		Total
Short-term Non-banking Loans	$	—	$	—	$	9,635,333	$	9,635,333
Preferred Stock		—		—		300,000		300,000
Common Stock		522,120		—		—		522,120
Warrants		—		—		—		—
Other Equity		—		—		600,000		600,000
Total	$	522,120	$	—	$	10,535,333	$	11,057,453

The following table presents the fair value measurements of our investments by major class, as of December 31, 2020, according to the fair value hierarchy:

	As of December 31, 2020
	Level 1		Level 2		Level 3		Total
Short-term Non-banking Loans	$	—	$	—	$	2,789,000	$	2,789,000
Preferred Stock		—		—		300,000		300,000
Common Stock		3,300,000		—		—		3,300,000
Warrants		—		—		—		—
Other Equity		—		—		278,897		278,897
Total	$	3,300,000	$	—	$	3,367,897	$	6,667,897

Schedule of reconciliation of the beginning and ending fair value balances for our Level 3 investment assets

The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 investment assets for the nine months ended September 30, 2021:

	For the nine months ended September 30, 2021
	ST
	Non-banking		Preferred		Common
	Loans		Stock		Stock		Warrants		Other Equity
Balance as of January 1, 2021	$	2,789,000	$	300,000	$	—	$	—	$	278,897
Net change in unrealized appreciation		—		—		—		—		—
Purchases and other adjustments to cost		17,365,333		—		—		—		600,000
Sales and redemptions		(10,519,000)		—		—		—		(278,897)
Net realized loss		—		—		—		—		—
Balance as of June 30, 2021	$	9,635,333	$	300,000	$	—	$	—	$	600,000

The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 investment assets for the year ended December 31, 2020:

	For the year ended December 31, 2020
	ST Non-banking		Preferred		Common
	Loans		Stock		Stock		Warrants		Other Equity
Balance as of January 1, 2020	$	—	$	300,000	$	—	$	—	$	534,200
Net change in unrealized appreciation		—		—		—		—		486,018
Purchases and other adjustments to cost		7,543,000		—		—		—		—
Sales and redemptions		(4,754,000)		—		—		—		(91,313)
Net realized loss		—		—		—		—		(650,008)
Balance as of December 31, 2020	$	2,789,000	$	300,000	$	—	$	—	$	278,897

Schedule of Level 3 investments held and the unobservable inputs used to determine their valuation

The following table lists our Level 3 investments held as of September 30, 2021 and the unobservable inputs used to determine their valuation:

Security Type	9/30/21 FMV		Valuation Technique	Unobservable Inputs	Range
ST Non-banking Loans	$	9,635,333	discounted cash flow	determining private company interest rate based on credit	12-44	%
Other Equity		600,000	last secured funding known by company	economic changes since last funding
Preferred Stock		300,000	last funding secured by company	economic changes since last funding
	$	10,535,333

The following table lists our Level 3 investments held as of December 31, 2020 and the unobservable inputs used to determine their valuation:

Security Type	12/31/20 FMV		Valuation Technique	Unobservable Inputs	Range
ST Non-banking Loans	$	2,789,000	discounted cash flow	determining private company interest rate based on credit	14-44	%
Other Equity		278,897	last secured funding known by company	economic changes since purchase
Preferred Stock		300,000	last funding secured by company	economic changes since last funding
	$	3,367,897