10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

o    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number 814-00908

Prospect Floating Rate and Alternative Income Fund, Inc.

(Exact name of Registrant as specified in its charter)

Maryland	45-2460782
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10 East 40th Street, 42nd Floor
New York, NY	10016
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 448-0702

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o     

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the issuer’s Common Stock, $0.001 par value per share, outstanding as of November 14, 2023 was 2,420,670.

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

TABLE OF CONTENTS

		Page
	Forward-Looking Statements	1
PART I	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements	3
	Consolidated Statements of Assets and Liabilities as of September 30, 2023 (unaudited) and June 30, 2023	3
	Consolidated Statements of Operations for the three months ended September 30, 2023 and 2022 (unaudited)	4
	Consolidated Statements of Changes in Net Assets for the three months ended September 30, 2023 and 2022 (unaudited)	5
	Consolidated Statements of Cash Flows for the three months ended September 30, 2023 and 2022 (unaudited)	6
	Consolidated Schedules of Investments as of September 30, 2023 (unaudited) and June 30, 2023	7
	Notes to Consolidated Financial Statements (unaudited)	13
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	43
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	65
Item 4.	Controls and Procedures	66
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	67
Item 1A.	Risk Factors	67
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	67
Item 3.	Default Upon Senior Securities	67
Item 4.	Mine Safety Disclosures	67
Item 5.	Other Information	68
Item 6.	Exhibits	68
	Signatures	70

Forward-Looking Statements

Some of the statements in this quarterly report on Form 10-Q (the "Quarterly Report") constitute forward-looking statements, which relate to future events or our performance or financial condition. The forward-looking statements contained in this Quarterly Report involve risks, uncertainties and other factors, some of which are beyond our control, including, but not limited to, statements as to:                                    

•our, or our portfolio companies’, future operating results;

•our business prospects and the prospects of our portfolio companies;

•the return or impact of current or future investments that we expect to make;

•our contractual arrangements and relationships with third parties;

•the willingness of our investment adviser to waive fees;

•the dependence of our future success on the general economy and its impact on the industries in which we invest;

•the impact of global health epidemics, wars and civil disorder and other events outside our control, including, but not limited to, the renewed hostilities in the Middle East and the conflict between Russia and Ukraine, on our and our portfolio companies’ businesses and the global economy;

•uncertainty surrounding inflation and the financial stability of the United States, Europe, and China;

•the financial condition and ability of our current and prospective portfolio companies to achieve their objectives;

•difficulty in obtaining financing or raising capital, especially in the current credit and equity environment, and the impact of a protracted decline in the liquidity of credit markets on our and our portfolio companies’ business;

•the level, duration and volatility of prevailing interest rates and credit spreads, magnified by the current turmoil in the credit markets;

•the phase-out and cessation of the London Interbank Offered Rate (“LIBOR”) and the use of the Secured Overnight Financing Rate (“SOFR”) as a replacement rate on our operating results;

•adverse developments in the availability of desirable loan and investment opportunities whether they are due to competition, regulation or otherwise;

•a compression of the yield on our investments and the cost of our liabilities, as well as the level of leverage available to us;

•the impact of changes in laws or regulations governing our operations or the operations of our portfolio companies;

•our regulatory structure and tax treatment, including our ability to operate as a business development company and a regulated investment company;

•the adequacy of our cash resources and working capital;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments;

•the timing, form and amount of any dividend distributions;

•authoritative generally accepted accounting principles or policy changes from such standard-setting bodies as the Financial Accounting Standards Board, the Securities and Exchange Commission, Internal Revenue Service, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business; and

•any of the other risks, uncertainties and other factors we identify herein or in our Annual Report on Form 10-K for the year ended June 30, 2023.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions. The forward looking statements contained in this Quarterly Report involve risks and uncertainties and undue reliance should not be placed on them. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth as “Risk Factors” in this Quarterly Report, our annual report on Form 10-K and our other SEC filings.

We have based the forward-looking statements included in this report on information available to us on the date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of

1

new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K.

2

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

PART I

Item 1. Consolidated Financial Statements

Assets	September 30, 2023		June 30, 2023
	(unaudited)		(audited)
Investments at fair value:
Non-control/non-affiliate investments (amortized cost of $21,385,175 and $25,391,631, respectively) (Note 7 and 8)	$	17,090,718	$	21,915,187
Cash and cash equivalents	6,442,317		5,730,723
Restricted cash	—		61,833
Receivable for investments sold	1,160,781		1,361,436
Deferred financing costs (Note 10)	877,497		230,022
Interest receivable	141,253		169,695
Prepaid expenses and other assets	130,886		163,076
Deferred offering costs	129,153		—
Receivable for repayments of portfolio investments	—		7,554
Total Assets	25,972,605		29,639,526
Liabilities
Senior Secured Revolving Credit Facility (Note 10)	6,200,000		—
Revolving Credit Facility (Note 10)	—		8,600,000
Payable for open trade	4,994,167		4,997,938
Due to Administrator (Note 4)	1,087,384		868,634
Accrued legal fees	303,366		68,959
Accrued audit fees	105,766		169,400
Distributions payable	98,612		98,197
Accrued expenses	73,089		70,542
Interest payable	3,397		71,994
Total Liabilities	12,865,781		14,945,664
Commitments and Contingencies (Note 9)	—		—
Net Assets	$	13,106,824	$	14,693,862
Components of Net Assets
Common Stock, par value $0.001 per share (75,000,000 shares authorized; 2,407,904 and 2,409,452 Class A shares issued and outstanding, respectively) (Note 3)	$	2,408	$	2,410
Paid-in capital in excess of par (Note 3 and Note 6)	24,659,990		24,924,606
Total distributable earnings (loss) (Note 6)	(11,555,574)		(10,233,154)
Net Assets	13,106,824		14,693,862
Net Asset Value Per Share (Note 11)	$	5.44	$	6.10

See notes to consolidated financial statements.

3

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended September 30,
	2023		2022
Investment Income
Interest income from non-control/non-affiliate investments	$	432,079	$	606,873
Interest income from structured credit securities	113,037		188,640
Total Investment Income	545,116		795,513
Operating Expenses
Interest expense and credit facility expenses (Note 10)	290,213		269,258
Administrator Costs (Note 4)	223,750		60,582
General and administrative	97,518		57,602
Base management fees (Note 4)	83,359		112,434
Transfer agent’s fees and expenses	63,657		55,031
Insurance expense	32,191		60,989
Audit and tax expense	28,750		138,433
Legal expense	27,405		68,479
Valuation services	4,000		5,000
Offering costs	—		8,513
Total Operating Expenses	850,843		836,321
Expense limitation payment (Note 4)	(83,359)		(112,434)
Total Net Operating Expenses	767,484		723,887
Net Investment (Loss) Income	(222,368)		71,626
Net Realized Losses and Net Change in Unrealized Losses on Investments
Net realized losses:
Non-control/non-affiliate investments	(215,195)		—
Net realized losses	(215,195)		—
Net change in unrealized losses:
Non-control/non-affiliate investments	(818,013)		(588,941)
Net change in unrealized losses	(818,013)		(588,941)
Net Realized Losses and Net Change in Unrealized Losses on Investments	(1,033,208)		(588,941)
Extinguishment of debt	(66,844)		—
Net Decrease in Net Assets Resulting from Operations	$	(1,322,420)	$	(517,315)
Net decrease in net assets resulting from operations per share (Note 11)(1)	$	(0.55)	$	(0.22)
Distributions declared per share	$	0.11	$	0.14

(1)For the the three months ended September 30, 2023 and 2022, the weighted average common shares outstanding were 2,404,057 and 2,375,375, respectively.

See notes to consolidated financial statements.

4

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

	Common Stock
For the Three Months Ended September 30, 2023	Shares	Par		Paid-in Capital in Excess of Par		Distributable Earnings (Loss)		Net Assets
Balance as of June 30, 2023	2,409,452	$	2,410	$	24,924,606	$	(10,233,154)	$	14,693,862
Net decrease in net assets resulting from operations
Net investment (loss)	—	—		—		(222,368)		(222,368)
Net realized (losses) on investments	—	—		—		(215,195)		(215,195)
Net realized (losses) on extinguishment of debt	—	—		—		(66,844)		(66,844)
Net change in unrealized losses on investments	—	—		—		(818,013)		(818,013)
Distributions to Shareholders (Note 5)
Distributions from earnings	—	—		—		—		—
Return of capital distributions	—	—		(255,054)		—		(255,054)
Capital Transactions
Shares issued through reinvestment of distributions (Note 3)	18,415	18		111,987		—		112,005
Repurchase of common shares (Note 3)	(19,963)	(20)		(121,549)		—		(121,569)
Total Increase (Decrease) for the three months ended September 30, 2023	(1,548)	(2)		(264,616)		(1,322,420)		(1,587,038)
Balance as of September 30, 2023	2,407,904	$	2,408	$	24,659,990	$	(11,555,574)	$	13,106,824

	Common Stock
For the Three Months Ended September 30, 2022	Shares	Par		Paid-in Capital in Excess of Par		Distributable Earnings (Loss)		Net Assets
Balance as of June 30, 2022(1)	2,375,890	$	2,376	$	25,188,341	$	(8,489,742)	$	16,700,975
Net increase in net assets resulting from operations
Net investment income	—	—		—		71,626		71,626
Net change in unrealized losses on investments	—	—		—		(588,941)		(588,941)
Distributions to Shareholders (Note 6)
Distributions from earnings	—	—		—		(247,706)		(247,706)
Return of capital distributions	—	—		(91,282)		—		(91,282)
Capital Transactions
Shares issued through reinvestment of distributions	21,177	21		153,260		—		153,281
Repurchase of common shares	(21,818)	(22)		(152,483)		—		(152,505)
Total Increase (Decrease) for the three months ended September 30, 2022	(641)	(1)		(90,505)		(765,021)		(855,527)
Balance as of September 30, 2022	2,375,249	$	2,375	$	25,097,836	$	(9,254,763)	$	15,845,448

(1) Certain reclassifications have been made in the presentation of prior year and prior quarter amounts to conform to the presentation for the current fiscal year. In addition, we have not yet finalized return of capital estimates for the current period. See Note 2 and 6 within the accompanying notes to the consolidated financial statements for further discussion.

See notes to consolidated financial statements.

5

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended September 30,
	2023		2022
Cash flows from operating activities:
Net decrease in net assets resulting from operations	$	(1,322,420)	$	(517,315)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Amortization of offering costs	—		8,513
Repayments and sales of portfolio investments	3,641,054		1,358,587
Net change in unrealized losses on investments	818,013		588,941
Net realized losses on investments	215,195		—
Net realized losses on extinguishment of debt	66,844		—
Amortization of premiums (accretion of purchase discounts) on investments, net	172,213		45,602
Amortization of deferred financing costs	170,443		14,818
Payment-in-kind interest	(21,994)		(162)
Settlement of Treasury Bills	(13)		—
Changes in other assets and liabilities:
(Increase) Decrease in operating assets
Receivable for investments sold	200,655		—
Receivable for repayments of portfolio investments	7,554		28,918
Interest receivable	28,442		73,932
Deferred offering costs (Note 5)	—		(8,513)
Prepaid expenses and other assets	32,190		6,326
Increase (Decrease) in operating liabilities
Payable for open trades	(3,771)		—
Accrued expenses	2,547		17,048
Accrued legal fees	105,254		(58,476)
Accrued audit fees	(63,634)		18,433
Due to Administrator (Note 5)	218,750		40,517
Interest payable	(68,597)		20,904
Tax payable	—		(4,935)
Net cash provided by operating activities	4,198,725		1,633,138
Cash flows from financing activities:
Distributions paid to stockholders	(142,633)		(174,441)
Repurchase of common shares	(121,569)		(152,505)
Borrowings under Senior Secured Revolving Credit Facility (Note 10)	6,200,000		—
Repayments under Revolving Credit Facility (Note 10)	(8,600,000)		(500,000)
Financing costs paid and deferred	(884,762)		—
Net cash used in financing activities	(3,548,964)		(826,946)
Net increase in cash, cash equivalents and restricted cash	649,761		806,192
Cash, cash equivalents and restricted cash at beginning of period	5,792,556		1,467,568
Cash, cash equivalents and restricted cash at end of period	$	6,442,317	$	2,273,760
Supplemental disclosures:
Cash paid for interest	$	188,366	$	233,536
Non-cash financing activities:
Value of shares issued through reinvestment of distributions	$	112,005	$	153,281
Unpaid deferred offering costs (Note 5)	$	(129,153)	$	—
Beginning of the period
Cash and cash equivalents	$	5,730,723	$	1,467,568
Restricted cash	61,833		—
Cash, cash equivalents and restricted cash at beginning of period	$	5,792,556	$	1,467,568
End of the period
Cash and cash equivalents	$	6,442,317	$	2,273,760
Restricted cash	—		—
Cash, cash equivalents and restricted cash at end of period	$	6,442,317	$	2,273,760

See notes to consolidated financial statements.

6

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2023

(Unaudited)

							September 30, 2023
Portfolio Company / Security Type	Industry	Acquisition Date	Coupon/Yield (b)		Floor	Legal Maturity	Principal/ Quantity		Amortized Cost (d)		Fair Value (c)		% of Net Assets
Non-Control/Non-Affiliate Investments (less than 5.00% voting control):
Senior Secured Loans-First Lien(f)(k)(l)
Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)(h)(j)	Telecommunications	7/31/2019	6ML+4.50% (10.23%)		0.01	11/1/2024	$	1,913,706	$	1,873,189	$	1,877,365	14.32	%
BCPE North Star US Holdco 2, Inc.(h)	Beverage, Food & Tobacco	2/2/2022	1ML+4.00% (9.43%)		0.01	6/9/2028	969,997		967,059		938,763		7.15	%
CareerBuilder, LLC(h)(j)	Services: Consumer	4/18/2023	6M SOFR+6.75% (12.51%)		0.01	7/31/2026	725,238		721,772		331,071		2.53	%
DRI Holding Inc.(h)	Media: Broadcasting & Subscription	12/16/2021	1M SOFR+5.25% (10.67%)		0.01	12/21/2028	975,051		972,914		975,050		7.44	%
DTI Holdco, Inc.(i)	Services: Business	4/21/2022	3M SOFR+4.75% (10.12%)		0.01	4/26/2029	738,769		724,701		738,769		5.64	%
Research Now Group, LLC & Dynata, LLC(h)	Services: Business	4/2/2019	3ML+5.50% (11.13%)		0.01	12/20/2024	1,914,932		1,914,045		1,642,677		12.53	%
Sorenson Communications, LLC(h)	Services: Consumer	3/12/2021	1M SOFR+5.50% (10.93%)		0.01	3/17/2026	1,029,405		1,021,364		1,029,405		7.85	%
Staples, Inc.(i)(j)	Wholesale	11/18/2019	3ML + 5.00% (10.63%)		—	4/16/2026	999,623		993,251		865,844		6.61	%
ViaPath Technologies(h)(j)	Telecommunications	4/5/2019	1M SOFR+4.25% (9.77%)		—	11/29/2025	421,015		411,652		409,851		3.13	%
Wellpath Holdings, Inc.(f/k/a CCS-CMGC Holdings, Inc.)(h)(j)	Healthcare & Pharmaceuticals	4/2/2019	1M SOFR + 5.50% (11.18%)		—	10/1/2025	2,007,303		1,990,793		1,960,162		14.96	%
Total Senior Secured Loans-First Lien									$	11,590,740	$	10,768,957	82.16	%
Senior Secured Loans-Second Lien(f)(h)(k)(l)(o)
Shutterfly Finance, LLC	Media: Diversified and Production	6/9/2023	3M SOFR+1.00% (6.39%) + PIK 4.00%		1.00	10/1/2027	$	1,785,994	$	1,777,299	$	1,378,000	10.51	%
Total Senior Secured Loans-Second Lien									$	1,777,299	$	1,378,000	10.51	%
Senior Secured Notes (a)(f)(h)(k)
CURO Group Holdings Corp.	Financial	11/18/2021	7.50	%	N/A	8/1/2028	$	750,000	$	752,749	$	290,152	2.21	%
Total Senior Secured Notes									$	752,749	$	290,152	2.21	%
Structured Subordinated Notes (a)(f)(e)(h)(k)
Apidos CLO XXIV	Structured Finance	5/17/2019	25.77	%	N/A	10/20/2030	$	250,000	$	165,284	$	159,726	1.22	%
Apidos CLO XXVI	Structured Finance	7/25/2019	7.49	%	N/A	7/18/2029	250,000		182,819		146,591		1.12	%
California CLO IX, Ltd.	Structured Finance	12/13/2019	18.54	%	N/A	7/16/2032	500,000		260,592		214,411		1.64	%
Carlyle Global Market Strategies CLO 2014-4-R, Ltd.	Structured Finance	4/7/2017	9.54	%	N/A	7/15/2030	250,000		170,675		144,074		1.10	%
Carlyle Global Market Strategies CLO 2017-5, Ltd.	Structured Finance	12/18/2017	4.68	%	N/A	1/22/2030	500,000		409,802		309,080		2.36	%
Galaxy XIX CLO, Ltd.	Structured Finance	12/5/2016	7.80	%	N/A	7/24/2030	250,000		168,968		119,790		0.91	%
GoldenTree Loan Opportunities IX, Ltd.(m)	Structured Finance	7/19/2017	—	%	N/A	10/29/2029	250,000		160,909		100,078		0.76	%
Madison Park Funding XIII, Ltd.	Structured Finance	11/6/2015	1.59	%	N/A	4/22/2030	250,000		126,831		96,801		0.74	%
Madison Park Funding XIV, Ltd.	Structured Finance	11/16/2015	15.81	%	N/A	10/22/2030	250,000		185,448		147,832		1.13	%
Octagon Investment Partners XIV, Ltd.(m)	Structured Finance	12/1/2017	—	%	N/A	7/16/2029	850,000		388,254		170,442		1.30	%
Octagon Investment Partners XV, Ltd.	Structured Finance	5/23/2019	9.83	%	N/A	7/19/2030	500,000		275,894		$	229,582	1.75	%
Octagon Investment Partners XXI, Ltd.(j)	Structured Finance	1/6/2016	16.39	%	N/A	2/14/2031	387,538		239,496		182,209		1.39	%
Octagon Investment Partners 30, Ltd.	Structured Finance	11/16/2017	4.15	%	N/A	3/17/2030	475,000		337,621		264,251		2.02	%
Octagon Investment Partners 31, Ltd.	Structured Finance	12/20/2019	10.29	%	N/A	7/20/2030	250,000		142,459		123,450		0.94	%
Octagon Investment Partners 36, Ltd.	Structured Finance	12/20/2019	17.27	%	N/A	4/15/2031	500,000		372,855		304,798		2.33	%
Octagon Investment Partners 39, Ltd.	Structured Finance	1/9/2020	21.09	%	N/A	10/21/2030	250,000		204,167		192,074		1.47	%

7

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2023 (Continued)

(Unaudited)

							September 30, 2023
Portfolio Company / Security Type	Industry	Acquisition Date	Coupon/Yield (b)		Floor	Legal Maturity	Principal/ Quantity		Amortized Cost (d)		Fair Value (c)		% of Net Assets
OZLM XII, Ltd.(m)	Structured Finance	1/17/2017	—	%	N/A	4/30/2027	$	275,000	$	147,500	$	—	—	%
Sound Point CLO II, Ltd.(m)	Structured Finance	5/16/2019	—	%	N/A	1/26/2031	1,500,000		658,336		390,028		2.98	%
Sound Point CLO VII-R, Ltd.	Structured Finance	8/23/2019	18.09	%	N/A	10/23/2031	150,000		62,953		50,906		0.39	%
Sound Point CLO XVIII, Ltd.	Structured Finance	5/16/2019	2.35	%	N/A	1/21/2031	250,000		180,377		131,432		1.00	%
THL Credit Wind River 2013-1 CLO, Ltd.(m)	Structured Finance	11/1/2017	—	%	N/A	7/22/2030	325,000		199,070		99,625		0.76	%
Venture XXXIV CLO, Ltd.	Structured Finance	7/30/2019	16.19	%	N/A	10/15/2031	250,000		215,422		184,932		1.41	%
Voya IM CLO 2013-1, Ltd.(j)	Structured Finance	6/9/2016	1.22	%	N/A	10/15/2030	278,312		157,716		118,835		0.91	%
Voya CLO 2016-1, Ltd.	Structured Finance	1/22/2016	7.69	%	N/A	1/21/2031	250,000		182,996		152,343		1.16	%
Total Structured Subordinated Notes									$	5,596,444	$	4,033,290	30.79	%
Equity/Other(a)(f)(g)(h)(k)
ACON IWP Investors I, L.L.C.	Healthcare & Pharmaceuticals	4/30/2015	N/A		N/A	N/A	$	472,357	$	472,357	$	568,500	4.34	%
FullBeauty Brands Holding, Common Stock	Retail	2/7/2019	N/A		N/A	N/A	72		198,026		9,519		0.07	%
Rising Tide Holdings, Inc.	Consumer goods: Non-Durable	9/11/2023	N/A		N/A	N/A	2,500		997,560		42,300		0.32	%
Total Equity/Other									$	1,667,943	$	620,319	4.73	%
Total Portfolio Investments									$	21,385,175	$	17,090,718	130.40	%

(a)    Indicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of September 30, 2023, 19% are non-qualifying assets as a percentage of total assets.

(b)    The majority of the investments bear interest at a rate that may be determined by reference to either London Interbank Offered Rate ("LIBOR" or "L") or Secured Overnight Financing Rate ("SOFR") which resets monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR or the prime lending rate ("Prime") and the current contractual interest rate in effect at September 30, 2023. Certain investments are subject to a LIBOR, SOFR or Prime interest rate floor. The one-month ("1ML") and three-month ("3ML") LIBOR rates are based on the applicable LIBOR rate for each investment on its reset date. The three-month ("3M SOFR") and six-month ("6M SOFR") SOFR rates are based on the applicable SOFR rate for each investment on its reset date.

(c)    Fair value is determined by the Company’s Board of Directors (see Note 2).

(d)    See Note 6 for a discussion of the tax cost of the portfolio.

(e) The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

(f) Security is held by the Company and is pledged as collateral for the Senior Secured Revolving Credit Facility (see Note 10). The fair value of the investments used as collateral by the Company for the Senior Secured Revolving Credit Facility at September 30, 2023 was $17,090,718, representing 100% of our total investments.

(g) Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

(h)    Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 2 and 8 within the accompanying notes to the consolidated financial statements.

(i) Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 2 within the accompanying notes to the consolidated financial statements.

(j)     Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments):

Portfolio Company	Investment	Follow-On Acquisition Dates	Follow-On Acquisitions (Excluding initial investment cost)
Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)	Senior Secured Loans-First Lien	8/2/2019	$	908,750
CareerBuilder, LLC	Senior Secured Loans-First Lien	6/5/2020	690,000
Octagon Investment Partners XXI, Ltd.	Structured Subordinated Notes	2/14/2019	35,015
Staples, Inc.	Senior Secured Loans-First Lien	2/3/2020	980,031
ViaPath Technologies (f/k/a Global Tel*Link Corporation)	Senior Secured Loans-First Lien	7/9/2019, 7/16/2019	1,436,250
Voya IM CLO 2013-1, Ltd.	Structured Subordinated Notes	10/17/2017, 7/1/2019	20,584
Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)	Senior Secured Loans-First Lien	4/10/2019, 7/25/2019	1,327,000

8

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2023 (Continued)

(Unaudited)

(k) The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

(l)     Syndicated investments which were originated by a financial institution and broadly distributed.

(m) The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

(n) As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. There were no transactions with affiliated investments during the the three months ended September 30, 2023.

Affiliated Companies

Fair Value at June 30, 2023

Gross Additions (Cost)

Gross Reductions (Cost)

Net unrealized gains (losses)

Fair Value at September 30, 2023

Interest income

Dividend income

Other income

Net realized gains (losses)

—

—

—

—

—

—

—

—

—

Total

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

(o)     The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments.

The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the three months ended September 30, 2023:

Security Name	PIK Rate - Capitalized		PIK Rate - Paid as cash		Maximum Current PIK Rate
Shutterfly Finance, LLC - Second Lien Term Loan	4.00	%	—	%	4.00	%

See notes to consolidated financial statements.

9

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2023

							June 30, 2023
Portfolio Company / Security Type	Industry	Acquisition Date	Coupon/Yield (b)		Floor	Legal Maturity	Principal/ Quantity		Amortized Cost (d)		Fair Value (c)		% of Net Assets
Non-Control/Non-Affiliate Investments (less than 5.00% voting control):
Senior Secured Loans-First Lien(k)(l)
Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)(f)(h)(j)	Telecommunications	7/31/2019	3ML+4.50% (10.23%)		1.00	11/1/2024	$	1,918,782	$	1,871,317	$	1,918,782	13.06	%
BCPE North Star US Holdco 2, Inc.(f)(h)	Beverage, Food & Tobacco	2/2/2022	3ML+4.00% (9.54%)		0.75	6/9/2028	972,470		972,281		920,151		6.26	%
CareerBuilder, LLC(h)(j)	Services: Consumer	4/18/2023	6M SOFR+6.75% (12.51%)		1.00	7/31/2026	725,238		723,343		499,544		3.40	%
DRI Holding Inc(f)(h)	Media: Broadcasting & Subscription	12/16/2021	1ML SOFR+5.25% (10.45%)		0.50	12/21/2028	977,525		977,525		971,690		6.61	%
DTI Holdco, Inc.(f)(h)	Services: Business	4/21/2022	3M SOFR+4.75% (9.80%)		0.75	4/26/2029	740,634		727,834		710,099		4.83	%
First Brands Group(f)(h)	Automotive	3/24/2021	6M SOFR+5.00% (10.25%)		1.00	3/30/2027	473,788		470,727		470,696		3.20	%
PetVet Care Centers, LLC(f)(i)	Healthcare & Pharmaceuticals	11/22/2021	1ML+3.50% (8.69%)		0.75	2/14/2025	475,805		475,174		467,003		3.18	%
RC Buyer, Inc.(f)(h)	Consumer goods: Durable	7/27/2021	3M SOFR+3.50% (9.00%)		0.75	7/28/2028	705,000		703,653		678,492		4.62	%
Research Now Group, LLC (f/k/a Research Now Group, Inc.) and Dynata, LLC (f/k/a Survey Sampling International, LLC)(f)(h)	Services: Business	4/2/2019	3ML+5.50% (10.80%)		1.00	12/20/2024	1,920,012		1,920,012		1,797,820		12.24	%
Rising Tide Holdings, Inc.(f)(h)(o)	Consumer goods: Non-Durable	5/26/2021	3M SOFR+1.00% (10.26%)		0.75	6/1/2028	1,004,619		997,560		669,880		4.56	%
Sorenson Communications, LLC(f)(h)	Services: Consumer	3/12/2021	1ML + 5.50% (10.69%)		0.75	3/17/2026	1,063,719		1,055,986		1,062,278		7.23	%
Staples, Inc.(f)(i)(j)	Wholesale	11/18/2019	3ML+5.00% (10.30%)		—	4/16/2026	1,929,648		1,917,882		1,662,469		11.31	%
Upstream Newco, Inc.(f)(h)	Services: Consumer	7/22/2021	3M SOFR+4.25% (9.75%)		—	11/20/2026	1,225,000		1,225,000		1,179,920		8.03	%
ViaPath Technologies (f/k/a Global Tel*Link Corporation)(f)(h)(j)	Telecommunications	4/5/2019	1M SOFR+4.25% (9.45%)		—	11/29/2025	422,120		412,170		405,431		2.76	%
Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)(f)(h)(j)	Healthcare & Pharmaceuticals	4/2/2019	3ML+5.50% (10.98%)		—	10/1/2025	2,012,571		1,995,203		1,948,131		13.26	%
Total Senior Secured Loans-First Lien									$	16,445,667	$	15,362,386	104.55	%
Senior Secured Loans-Second Lien(f)(h)(k)(l)(o)
Shutterfly Finance, LLC	Media: Diversified and Production	6/5/2023	10.24% ( PIK plus 5.00% cash)		1.00	10/1/2027	$	1,764,000	$	1,758,303	$	1,416,049	9.64	%
Total Senior Secured Loans-Second Lien									$	1,758,303	$	1,416,049	9.64	%
Senior Secured Notes (a)(h)(k)
CURO Group Holdings Corp.	Financial	11/18/2021	7.50	%	N/A	8/1/2028	$	750,000	$	752,867	$	271,899	1.85	%
Total Senior Secured Notes									$	752,867	$	271,899	1.85	%
Structured Subordinated Notes (a)(e)(h)(k)
Apidos CLO XXIV	Structured Finance	5/17/2019	26.91	%	N/A	10/20/2030	$	250,000	$	166,533	$	163,123	1.11	%
Apidos CLO XXVI	Structured Finance	7/25/2019	12.85	%	N/A	7/18/2029	250,000		188,599		164,613		1.12	%
California CLO IX, Ltd.	Structured Finance	12/13/2019	24.51	%	N/A	7/16/2032	500,000		265,278		240,926		1.64	%
Carlyle Global Market Strategies CLO 2014-4-R, Ltd.	Structured Finance	4/7/2017	13.21	%	N/A	7/15/2030	250,000		174,426		154,469		1.05	%
Carlyle Global Market Strategies CLO 2017-5, Ltd.	Structured Finance	12/18/2017	5.14	%	N/A	1/22/2030	500,000		422,204		319,644		2.18	%
Galaxy XIX CLO, Ltd.	Structured Finance	12/5/2016	12.16	%	N/A	7/24/2030	250,000		174,231		126,513		0.86	%
GoldenTree Loan Opportunities IX, Ltd.(m)	Structured Finance	7/19/2017	—	%	N/A	10/29/2029	250,000		167,080		116,952		0.80	%
Madison Park Funding XIII, Ltd.(m)	Structured Finance	11/6/2015	—	%	N/A	4/22/2030	250,000		133,019		110,817		0.75	%
Madison Park Funding XIV, Ltd.	Structured Finance	11/16/2015	19.33	%	N/A	10/22/2030	250,000		189,166		152,446		1.04	%
Octagon Investment Partners XIV, Ltd.(m)	Structured Finance	12/1/2017	—	%	N/A	7/16/2029	850,000		401,984		231,504		1.58	%

10

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2023 (Continued)

							June 30, 2022
Portfolio Company /  Security Type	Industry	Acquisition Date	Coupon/Yield (b)		Floor	Legal Maturity	Principal/ Quantity		Amortized Cost (d)		Fair Value (c)		% of Net Assets
Octagon Investment Partners XV, Ltd.	Structured Finance	5/23/2019	11.77	%	N/A	7/19/2030	$	500,000	$	283,882	$	244,193	1.66	%
Octagon Investment Partners XXI,Ltd.(j)	Structured Finance	1/6/2016	18.87	%	N/A	2/14/2031	387,538		241,912		188,503		1.28	%
Octagon Investment Partners 30, Ltd.	Structured Finance	11/16/2017	3.12	%	N/A	3/17/2030	475,000		354,696		284,479		1.94	%
Octagon Investment Partners 31, Ltd.	Structured Finance	12/20/2019	13.52	%	N/A	7/20/2030	250,000		148,955		138,013		0.94	%
Octagon Investment Partners 36, Ltd.	Structured Finance	12/20/2019	19.80	%	N/A	4/15/2031	500,000		380,983		320,718		2.18	%
Octagon Investment Partners 39, Ltd.	Structured Finance	1/9/2020	22.80	%	N/A	10/21/2030	250,000		204,843		196,987		1.34	%
OZLM XII, Ltd.(m)	Structured Finance	1/17/2017	—	%	N/A	4/30/2027	275,000		147,499		—		—	%
Sound Point CLO II, Ltd.(m)	Structured Finance	5/16/2019	—	%	N/A	1/26/2031	1,500,000		697,068		456,140		3.10	%
Sound Point CLO VII-R, Ltd.	Structured Finance	8/23/2019	15.65	%	N/A	10/23/2031	150,000		61,100		45,533		0.31	%
Sound Point CLO XVIII, Ltd.	Structured Finance	5/16/2019	3.39	%	N/A	1/21/2031	250,000		190,013		144,187		0.98	%
THL Credit Wind River 2013-1 CLO, Ltd.(m)	Structured Finance	11/1/2017	—	%	N/A	7/22/2030	325,000		199,070		103,140		0.70	%
Venture XXXIV CLO, Ltd.	Structured Finance	7/30/2019	19.40	%	N/A	10/15/2031	250,000		217,261		196,420		1.34	%
Voya IM CLO 2013-1, Ltd.(j)	Structured Finance	6/9/2016	0.49	%	N/A	10/15/2030	278,312		164,330		121,672		0.83	%
Voya CLO 2016-1, Ltd.	Structured Finance	1/22/2016	10.97	%	N/A	1/21/2031	250,000		190,279		165,765		1.13	%
Total Structured Subordinated Notes									$	5,764,411	$	4,386,757	29.85	%
Equity/Other(a)(g)(h)(k)
ACON IWP Investors I, L.L.C.	Healthcare & Pharmaceuticals	4/30/2015	N/A		N/A	N/A	$	472,357	$	472,357	$	465,000	3.16	%
FullBeauty Brands Holding, Common Stock	Retail	2/7/2019	N/A		N/A	N/A	72		198,026		13,096		0.09	%
Total Equity/Other									$	670,383	$	478,096	3.25	%
Total Portfolio Investments									$	25,391,631	$	21,915,187	149.14	%

(a)    Indicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of June 30, 2023, 17% are non-qualifying assets as a percentage of total assets.

(b)    The majority of the investments bear interest at a rate that may be determined by reference to either London Interbank Offered Rate ("LIBOR" or "L") or Secured Overnight Financing Rate ("SOFR") which resets monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR or the prime lending rate ("Prime") and the current contractual interest rate in effect at June 30, 2023. Certain investments are subject to a LIBOR, SOFR or Prime interest rate floor. The one-month ("1ML"), three-month ("3ML"), and six-month ("6ML") LIBOR rates are based on the applicable LIBOR rate for each investment on its reset date. The one-month ("1M SOFR") and three-month ("3M SOFR") SOFR rates are based on the applicable SOFR rate for each investment on its reset date.

(c)    Fair value is determined by the Company’s Board of Directors (see Note 2).

(d)    See Note 6 for a discussion of the tax cost of the portfolio.

(e) The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

(f) Security is held by Prospect Flexible Funding, LLC, our SPV, and is pledged as collateral for the Credit Facility and such security is not available as collateral to our general creditors (see Note 10). The fair values of the investments held by the SPV at June 30, 2023 was $16,278,891 representing 74% of our total investments.

(g) Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

(h)    Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 3 and 9 within the accompanying notes to the consolidated financial statements.

(i) Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 3 within the accompanying notes to the consolidated financial statements.

(j)     Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments):

11

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2023 (Continued)

Portfolio Company	Investment	Follow-On Acquisition Dates	Follow-On Acquisitions (Excluding initial investment cost)
Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)	Senior Secured Loans-First Lien	8/2/2019	908,750
Octagon Investment Partners XXI, Ltd.	Structured Subordinated Notes	2/14/2019	35,015
Staples, Inc.	Senior Secured Loans-First Lien	2/3/2020	980,031
ViaPath Technologies (f/k/a Global Tel*Link Corporation)	Senior Secured Loans-First Lien	7/9/2019, 7/16/2019	1,436,250
Voya IM CLO 2013-1, Ltd.	Structured Subordinated Notes	10/17/2017, 7/1/2019	20,584
Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)	Senior Secured Loans-First Lien	4/10/2019, 7/25/2019	1,327,000

(k)     The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

(l)     Syndicated investments which were originated by a financial institution and broadly distributed.

(m) The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

(n) As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. There were no transactions with affiliated investments during the year ended June 30, 2023.

Affiliated Companies

Fair Value at June 30, 2022

Gross Additions (Cost)

Gross Reductions (Cost)

Net unrealized gains (losses)

Fair Value at June 30, 2023

Interest income

Dividend income

Other income

Net realized gains (losses)

—

—

—

—

—

—

—

—

—

Total

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

(o)    The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option of the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments.

The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the year ended June 30, 2023:

Security Name	PIK Rate - Capitalized		PIK Rate - Paid as cash		Maximum Current PIK Rate
Rising Tide Holdings, Inc. - First Lien Term Loan	3.75	%	—	%	3.75	%
Shutterfly Finance, LLC - Second Lien Term Loan	—	%	4.00	%	4.00	%

See notes to consolidated financial statements.

12

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - NATURE OF OPERATIONS

Prospect Floating Rate and Alternative Income Fund, Inc. (the “Company”, “PFLOAT”, “our”, “us”, “we”), incorporated in Maryland on April 29, 2011, is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to generate current income and, as a secondary objective, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. Under normal market conditions, we will invest at least 80% of our net assets (plus any borrowings for investment purposes) in floating rate loans and other income producing investments. We intend to meet our investment objective by primarily lending to and investing in the debt of privately-owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $2.5 billion. We expect that at least 70% of our portfolio of investments will consist primarily of directly originated or syndicated senior secured first lien loans, directly originated or syndicated senior secured second lien loans, and to a lesser extent, subordinated debt, and that up to 30% of our portfolio of investments will consist of other securities, including private equity (both common and preferred), dividend-paying equity, royalties, and the equity and junior debt tranches of a type of pools of broadly syndicated loans known as collateralized loan obligations (“CLOs”), which we also refer to as subordinated structured notes (“SSNs”). Pursuant to our Articles of Incorporation, as amended, restated and supplemented, the Company is authorized to issue 75,000,000 shares of common stock with a par value of $0.001 per share. Additionally, the Company is authorized to issue 25,000,000 shares of preferred stock with a par value of $0.001 per share. The Company previously offered for sale a maximum of $300,000,000 of shares of common stock on a “best efforts” basis pursuant to a registration statement on Form N-2 filed with the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended (the "Securities Act"), that was dated and became effective on October 27, 2020 (the “Offering”). The Company's initial registration statement on Form N-2 was declared effective on September 4, 2012 and the Company commenced the Offering on such date. On June 25, 2014, the Company met its minimum offering requirement of $2,500,000 and released all shares held in escrow. On and effective February 19, 2021, the Company terminated the Offering and, as a result, the Company's Amended and Restated Dealer Manager Agreement, dated August 6, 2020, with Triton Pacific Securities, LLC (“TPS”) terminated in accordance with its terms and TPS ceased serving as the Company's dealer manager effective as of such date. Effective September 19, 2022, the Company engaged Preferred Capital Securities, LLC (“PCS”) as the Company’s dealer manager for the Company’s offering to “accredited investors” (within the meaning of Rule 501(a) under the Securities Act) of shares of its common stock (the “Private Offering”) on the terms and conditions set forth in the Company’s confidential private placement memorandum. The Company is relying on the exemption provided by Rule 506(b) of Regulation D and Section 4(a)(2) of the Securities Act in connection with the Private Offering. On September 13, 2023, the Company filed with the SEC an initial registration statement on Form N-2 for the offer and sale of up to $300,000,000 shares of its Class S, Class D and Class I common stock (the “Multi-Class Offering”). In connection with the Multi-Class Offering, the Company intends to authorize the issuance of separate classes of its common stock and designate such classes Class S, Class D and Class I common stock, respectively (the "Common Stock"). The registration statement has not been declared effective by the SEC and no Common Stock may be sold in connection with the Multi-Class Offering until such registration statement is declared effective by the SEC.                                                                                                    

On March 31, 2019, Pathway Capital Opportunity Fund, Inc. (“PWAY”) merged with and into us (the “Merger”). As the combined surviving company, we were renamed TP Flexible Income Fund, Inc. (we were formerly known as Triton Pacific Investment Corporation, Inc. (“TPIC”)). In connection with the Merger, Prospect Flexible Income Management, LLC (“PFIM”), an affiliate of PWAY, became our investment adviser, and Prospect Administration LLC (the "Administrator"), an affiliate of PFIM and our new investment advisor, Prospect Capital Management L.P. (the “Adviser”), became our administrator.

On and effective August 5, 2020, the Company changed its name to Prospect Flexible Income Fund, Inc. from TP Flexible Income Fund, Inc. by filing Articles of Amendment to its Fourth Articles of Amendment and Restatement, as amended and supplemented. On and effective January 10, 2022, the Company changed its name to Prospect Sustainable Income Fund, Inc. from Prospect Flexible Income Fund, Inc. To effectuate the name change, the Company amended its Fourth Articles of Amendment and Restated, as amended and supplemented, and amended and restated its Second Amended and Restated Bylaws. On and effective September 16, 2022, the Company changed its name to Prospect Floating Rate and Alternative Income Fund, Inc. from Prospect Sustainable Income Fund, Inc. by filing Articles of Amendment to its Fourth Articles of Amendment and Restatement, as amended and supplemented, and amended and restated its Third Amended and Restated Bylaws.

On April 20, 2021, we entered into an investment advisory agreement (the “Investment Advisory Agreement”) with the Adviser, which was approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act). Our stockholders approved the Investment Advisory Agreement at a Special Meeting of Stockholders held on March 31, 2021. The Investment Advisory Agreement replaced our prior investment advisory agreement, dated March 31, 2019 (the “Former Investment Advisory Agreement”), with PFIM, our former investment adviser, which terminated

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effective April 20, 2021. The Investment Advisory Agreement is identical in all material respects to the Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as our investment adviser instead of PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM. On November 5, 2021, we amended and restated the Investment Advisory Agreement (the “Amended and Restated Advisory Agreement”) to reduce the advisory fees payable thereunder, effective as of January 1, 2022 and until the one year anniversary of the listing of our common stock on a national securities exchange. The Amended and Restated Advisory Agreement was unanimously approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), and became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser are as set forth in the Investment Advisory Agreement. The Amended and Restated Advisory Agreement was most recently approved by our Board of Directors, including all of our directors who are not “interested persons” (as defined in the 1940 Act), on June 15, 2023. See “Note 4 - Related Party Transactions and Arrangements - Investment Advisory Agreement” for additional information.

The Adviser was formed in Delaware as a private investment management firm and is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940, as amended, or the Advisers Act. The Adviser oversees the management of our activities and is responsible for making the investment decisions with respect to our investment portfolio, subject to the oversight of our Board of Directors.

On May 16, 2019, we formed a wholly-owned subsidiary TP Flexible Funding, LLC (the “SPV”), a Delaware limited liability company and a bankruptcy remote special purpose entity, which holds certain of our portfolio loan investments that were used as collateral for the Credit Facility (as defined in Note 10) at the SPV. This subsidiary has been consolidated since operations commenced. On and effective August 5, 2020, the Company changed the name of the SPV to Prospect Flexible Funding, LLC.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation. The accompanying interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q, ASC 946, Financial Services—Investment Companies (“ASC 946”), and Articles 6 and 10 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with GAAP are omitted. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending June 30, 2024. Our consolidated financial statements include the accounts of PFLOAT and the SPV. All intercompany balances and transactions have been eliminated in consolidation. 

Management Estimates and Assumptions. The preparation of the consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income, expenses, and gains and losses during the reported period. Changes in the economic environment, financial markets, creditworthiness of the issuers of our investment portfolio and any other parameters used in determining these estimates could cause actual results to differ, and these differences could be material.

Cash, Cash Equivalents and Restricted Cash. All cash and restricted cash balances are maintained with high credit quality financial institutions. Cash, cash equivalents and restricted cash consist of demand deposits and highly liquid investments (e.g., U.S. treasury notes) with original maturities of three months or less. Cash held at financial institutions has exceeded the Federal Deposit Insurance Corporation ("FDIC") insured limit. The Company has not incurred any losses on these accounts, and the credit risk exposure is mitigated by the financial strength of the banking institutions where the amounts are held. The Company had restrictions prior to September 21, 2023 on the uses of the cash held by Prospect Flexible Funding, LLC based on the terms of the Credit Facility. Cash, cash equivalents and restricted cash are carried at cost, which approximates fair value. Cash equivalents are classified as Level 1 in the fair value hierarchy. As of September 30, 2023 and June 30, 2023, cash equivalents were $4,994,167 and $4,997,938, respectively.

Investment Transactions. 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. Specifically, we record all security transactions on a trade date basis. We determine the fair value of our investments on a quarterly basis (as discussed in Investment Valuation below), with quarter over quarter fluctuations in fair value reflected as a net change in unrealized gains (losses) from investments in the Consolidated Statements of Operations.

Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Realized gains or losses on the sale of investments are calculated using the specific identification method. Amounts for investments and or cash equivalents traded but not yet settled are reported in payable for

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open trades or receivable for open trades in the Consolidated Statements of Assets and Liabilities. As of September 30, 2023 and June 30, 2023, we have no assets going through foreclosure.

Investment Valuation. As a BDC, and in accordance with the 1940 Act, we fair value our investment portfolio on a quarterly basis, with any unrealized gains and losses reflected in net increase (decrease) in net assets resulting from operations on our Consolidated Statements of Operations. To value our investments, we follow the guidance of ASC 820, Fair Value Measurement (“ASC 820”), that defines fair value, establishes a framework for measuring fair value in conformity with GAAP, and requires disclosures about fair value measurements. In accordance with ASC 820, the fair value of our investments is defined as the price that we would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment is transacted.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1. Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2. Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3. Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment.

Our Board of Directors has established procedures for the valuation of our investment portfolio. These procedures are detailed below.

Investments for which market quotations are readily available are valued at such market quotations.

For most of our investments, market quotations are not available. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, due to factors such as volume and frequency of price quotes, our Board of Directors has approved a multi-step valuation process each quarter, as described below.

1. Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors.

2. The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report.

3. The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment.

4. The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee.

For intra-quarter periods and pursuant to Rule 2a-5, the Board of Directors has designated the Adviser as the valuation designee (the “Valuation Designee”) for the purpose of performing fair value determinations for investments for which market quotations are not readily available, or when such market quotations are deemed not to represent fair value. The Board of Directors has approved a multi-step valuation process for such intra-quarter investment valuations, as described below, and such investments are classified in Level 3 of the fair value hierarchy:

1.The Adviser will start with the most recent quarterly valuations determined pursuant to the process described above.

2.The Adviser will calculate the estimated earnings per share for each investment in order to adjust the valuation of that investment for income that is expected to be realized.

3.The Adviser will consider other factors that should be taken into account in order to adjust the valuations, including, market changes in expected returns for similar investments; performance improvement or deterioration which would change the margin added to the base interest rate charged; the nature and realizable value of any collateral; the issuer’s ability to make payments and its earnings and discounted cash flow; the markets in which the issuer does business; comparisons to publicly traded securities; and other relevant factors.

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Our non-CLO investments that are classified as Level 3 are valued utilizing a yield technique, enterprise value (“EV”) technique, net asset value technique, asset recovery technique, discounted cash flow technique, or a combination of techniques, as appropriate. The yield technique uses loan spreads for loans and other relevant information implied by market data involving identical or comparable assets or liabilities. Under the EV technique, the EV of a portfolio company is first determined and allocated over the portfolio company’s securities in order of their preference relative to one another (i.e., “waterfall” allocation). To determine the EV, we typically use a market (multiples) valuation approach that considers relevant and applicable market trading data of guideline public companies, transaction metrics from precedent merger and acquisitions transactions, and/or a discounted cash flow technique. The net asset value technique, an income approach, is used to derive a value of an underlying investment by dividing a relevant earnings stream by an appropriate capitalization rate. For this purpose, we consider capitalization rates for similar properties as may be obtained from guideline public companies and/or relevant transactions. The asset recovery technique is intended to approximate the net recovery value of an investment based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company’s assets. The discounted cash flow technique converts future cash flows or earnings to a range of fair values from which a single estimate may be derived utilizing an appropriate discount rate. The fair value measurement is based on the net present value indicated by current market expectations about those future amounts.

In applying these methodologies, additional factors that we consider in valuing our investments may include, as we deem relevant: security covenants, call protection provisions, and information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments; the principal markets in which the portfolio company does business; publicly available financial ratios of peer companies; the principal market; and enterprise values, among other factors.

Our investments in CLOs are classified as Level 3 fair value measured securities under ASC 820 and are valued using a discounted multi-path cash flow model. The CLO structures are analyzed to identify the risk exposures and to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, which is a simulation used to model the probability of different outcomes, to generate probability-weighted (i.e., multi-path) cash flows from the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market as well as certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the multi-path cash flows. We are not responsible for and have no influence over the asset management of the portfolios underlying the CLO investments we hold, as those portfolios are managed by non-affiliated third-party CLO collateral managers. The main risk factors are default risk, prepayment risk, interest rate risk, downgrade risk, and credit spread risk.

Investment Risks

Our investments are subject to a variety of risks. Those risks include the following:

Market Risk

Market risk represents the potential loss that can be caused by a change in the fair value of the financial instrument.

Credit Risk

Credit risk represents the risk that we would incur if the counterparties failed to perform pursuant to the terms of their agreements with us.

Credit Spread Risk

Credit spread risk represents the risk that with higher interest rates comes a higher risk of defaults.

Default Risk

Default risk is the risk that a borrower will be unable to make the required payments on their debt obligation.

Downgrade Risk

Downgrade risk results when rating agencies lower their rating on a bond which are usually accompanied by bond price declines.

Liquidity Risk

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Liquidity risk represents the possibility that we may not be able to rapidly adjust the size of our investment positions in times of high volatility and financial stress at a reasonable price.

Interest Rate Risk

Interest rate risk represents a change in interest rates, which could result in an adverse change in the fair value of an interest-bearing financial instrument.

Prepayment Risk

Many of our debt investments allow for prepayment of principal without penalty. Downward changes in interest rates may cause prepayments to occur at a faster than expected rate, thereby effectively shortening the maturity of the security and making us less likely to fully earn all of the expected income of that security and reinvesting in a lower yielding instrument.

Other Risks

Political developments, including civil conflicts and war, sanctions or other measures by the United States or other governments, natural disasters, public health crises and other events outside the Company’s control can directly or indirectly have a material adverse impact on the Company and our portfolio companies.

Structured Credit Related Risk

CLO investments may be riskier and less transparent to us than direct investments in underlying companies. CLOs typically will have no significant assets other than their underlying senior secured loans. Therefore, payments on CLO investments are and will be payable solely from the cash flows from such senior secured loans.

Investment Classification. We are a non-diversified company within the meaning of the 1940 Act. As required by the 1940 Act, we classify our investments by level of control. As defined in the 1940 Act, “Control Investments” are those where there is the ability or power to exercise a controlling influence over the management or policies of a company. Control is generally deemed to exist when a company or individual possesses or has the right to acquire within 60 days or less, a beneficial ownership of more than 25% of the voting securities of an investee company. Under the 1940 Act, “Affiliate Investments” are defined by a lesser degree of influence and are deemed to exist through the possession outright or via the right to acquire within 60 days or less, beneficial ownership of 5% or more of the outstanding voting securities of another person. “Non-Control/Non-Affiliate Investments” are those that are neither Control Investments nor Affiliate Investments.

As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). As of September 30, 2023 and June 30, 2023, our qualifying assets as a percentage of total assets stood at 80.97% and 82.67%, respectively.

Revenue Recognition. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Accretion of such purchase discounts or amortization of such premiums is calculated using the effective interest method as of the settlement date and adjusted only for material amendments or prepayments. Upon the prepayment of a loan or bond, any unamortized discount or premium is recorded as interest income. The Company records dividend income on the ex-dividend date. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. Loans are placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Unpaid accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans are either applied to the cost basis or interest income, depending upon management’s judgment of the collectibility of the loan receivable. Non-accrual loans are restored to accrual status when past due principal and interest is paid and in management’s judgment, is likely to remain current and future principal and interest collections when due are probable. Interest received and applied against cost while a loan is on non-accrual, and PIK interest capitalized but not recognized while on non-accrual, is recognized prospectively on the effective yield basis through maturity of the loan when placed back on accrual status, to the extent deemed collectible by management. As of September 30, 2023 and June 30, 2023, the Company did not have any loans on non-accrual status. Upfront structuring fees are recorded as fee income when earned. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.                                        

Some of our loans and other investments may have contractual payment-in-kind (“PIK”) interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, we capitalize the accrued interest (reflecting such amounts in the basis as additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point that we believe PIK is not fully expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the

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related receivable through interest or dividend income, respectively. We do not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if we believe that PIK is expected to be realized.

Interest income from investments in Structured Subordinated Notes (typically preferred shares, income notes or subordinated notes of CLO funds) is recorded based on an estimation of an effective yield to expected maturity utilizing assumed future cash flows in accordance with ASC 325-40, Beneficial Interest in the Securitized Financial Assets. The Company monitors the expected cash inflows from CLO equity investments, including the expected residual payments, and the estimated effective yield is determined and updated periodically.

Due from and to Adviser. Amounts due from the Adviser are for amounts waived under the ELA, respectively (as such terms are defined in Note 4) and amounts due to PFIM and the Adviser are for base management fees, incentive fees, operating expenses and offering and organization expenses paid on our behalf. All balances due from and to the Adviser are settled quarterly.

Payment-In-Kind Interest. The Company has certain investments in its portfolio that contain a PIK interest provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. For the three months ended September 30, 2023 and 2022, PIK interest included in interest income totaled $21,994 and $162, respectively. To maintain RIC tax treatment, and to avoid corporate tax, substantially all of this income must be paid out to the stockholders in the form of distributions, even though the Company has not yet collected the cash.

Offering Costs and Expenses. The Company will incur certain costs and expenses in connection with the Private Offering and registering to sell shares of its common stock. These costs and expenses principally relate to certain costs and expenses for advertising and sales, printing and marketing costs, professional and filing fees. Offering costs incurred by the Company were capitalized to deferred offering costs on the Consolidated Statements of Assets and Liabilities and will be amortized to expense over the 12 month period following the effectiveness of the registration to sell shares of its common stock on a straight line basis.

Dividends and Distributions. Dividends and distributions to common stockholders are recorded on the record date. The amount, if any, to be paid as a monthly dividend or distribution is approved by our Board of Directors quarterly and generally depends on our earnings, financial condition, maintenance of our tax treatment as a RIC, compliance with applicable BDC regulations and such other factors as our Board of Directors deems relevant from time to time. Net realized capital gains, if any, are distributed at least annually. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money originally invested and represent a return of capital distribution to shareholders for tax purposes.

Financing Costs. We record origination expenses related to our Revolving Credit Facility and Senior Secured Revolving Credit Facility as deferred financing costs. These expenses are deferred and amortized as part of interest expense using the straight-line method over the stated life of the obligation of our revolving credit facility. (See Note 10 for further discussion.)

Per Share Information. Net increase or decrease in net assets resulting from operations per share is calculated using the weighted average number of common shares outstanding for the period presented. (See Note 11 for further discussion.)

Net Realized and Net Change in Unrealized Gains or Losses. Gains or losses on the sale of investments are calculated by 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. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses when gains or losses are realized.

Federal and State Income Taxes. The Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and intends to continue to comply with the requirements of the Code applicable to RICs. As a RIC, the Company is required to distribute at least 90% of its investment company taxable income and intends to distribute (or retain through a deemed distribution) all of its investment company taxable income and net capital gain to stockholders; therefore, the Company has made no provision for income taxes. The character of income and gains that the Company will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividends and distributions and other permanent book and tax differences are reclassified to paid-in capital.

If the Company does not distribute (or is not deemed to have distributed) at least 98% of its annual ordinary income and 98.2% of its net capital gains in the calendar year earned, it will generally be required to pay an excise tax equal to 4% of the amount by which 98% of its annual ordinary income and 98.2% of its capital gains exceeds the distributions from such taxable income for the year. To the extent that the Company determines that its estimated current year annual taxable income will be in excess

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of estimated current year dividend distributions from such taxable income, it accrues excise taxes, if any, on estimated excess taxable income. As of September 30, 2023, the Company expects to have no excise tax due for the 2023 calendar year. As of September 30, 2023, the Company has accrued $0 of excise tax for this period.

If the Company fails to satisfy the annual distribution requirement or otherwise fails to qualify as a RIC in any taxable year, it would be subject to tax on all of its taxable income at regular corporate income tax rates. The Company would not be able to deduct distributions to stockholders, nor would it be required to make distributions. Distributions would generally be taxable to the Company’s individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced maximum rate applicable to qualified dividend income to the extent of its current and accumulated earnings and profits, provided certain holding period and other requirements are met. Subject to certain limitations under the Code, corporate distributions would be eligible for the dividends-received deduction. To qualify again to be taxed as a RIC in a subsequent year, the Company would be required to distribute to its shareholders its accumulated earnings and profits attributable to non-RIC years. In addition, if the Company failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, it would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

The Company follows ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the consolidated financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. As of September 30, 2023, the Company did not record any unrecognized tax benefits or liabilities. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, its major tax jurisdiction is federal. The Company’s federal tax returns for the tax years ended December 31, 2020 and thereafter remain subject to examination by the Internal Revenue Service.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board. The Company has assessed currently issued ASUs and has determined that they are not applicable or are expected to have minimal impact on its consolidated financial statements.

NOTE 3 - SHARE TRANSACTIONS

Below is a summary of transactions with respect to shares of common stock of PFLOAT during the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30, 2023			Three Months Ended September 30, 2022
	PFLOAT Class A Common Shares			PFLOAT Class A Common Shares
	Shares	Amount		Shares	Amount
Shares issued through reinvestment of distributions	18,415	$	112,005	21,177	$	153,281
Repurchase of common shares	(19,963)	(121,569)		(21,818)	(152,505)
Net (decrease)/increase from capital transactions	(1,548)	$	(9,564)	(641)	$	776

Status of Prior Public Offering

On and effective February 19, 2021, the Company terminated the Offering.

The respective net increase/(decrease) from capital transactions during the three months ended September 30, 2023 and 2022 includes reinvested stockholder distributions as noted in the table above.

Share Repurchase Program

The Company may conduct quarterly tender offers pursuant to its share repurchase program. The Company’s Board of Directors will consider the following factors, among others, in making its determination regarding whether to cause the Company to offer to repurchase shares of common stock and under what terms:

•    the effect of such repurchases on the Company’s qualification as a RIC (including the consequences of any necessary asset sales);

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

•    the liquidity of the Company’s assets (including fees and costs associated with disposing of assets);

•    the Company’s investment plans and working capital requirements;

•    the relative economies of scale with respect to the Company’s size;

•    the Company’s history in repurchasing shares of common stock or portions thereof; and

•    the condition of the securities markets.

The Company currently intends to limit the number of shares of common stock to be repurchased during any calendar year to the number of shares of common stock it can repurchase with the cash retained as a result of issuing shares under its distribution reinvestment plan to those stockholders who have elected to receive their distributions in the form of additional shares rather than in cash.. At the discretion of the Company’s Board of Directors, the Company may also use cash on hand, cash available from borrowings and cash from the liquidation of securities investments as of the end of the applicable period to repurchase shares of common stock. In addition, the Company will limit the number of shares of common stock to be repurchased in any calendar year to 10% of the weighted average number of shares of common stock outstanding in the prior calendar year, or 2.5% in each calendar quarter, though the actual number of shares of common stock that the Company offers to repurchase may be less in light of the limitations noted above.

Our Board of Directors reserves the right, in its sole discretion, to limit the number of shares to be repurchased for each class by applying the limitations on the number of shares to be repurchased, noted above, on a per class basis. We further anticipate that we will offer to repurchase such shares on each date of repurchase at a price equal to the current net offering price or net asset value per share, as applicable, on each date of repurchase. If the amount of repurchase requests exceeds the number of shares we seek to repurchase, we will repurchase shares on a pro-rata basis. As a result, we may repurchase less than the full amount of shares that stockholders submit for repurchase. If we do not repurchase the full amount of the shares that stockholders have requested to be repurchased, or we determine not to make repurchases of our shares, stockholders may not be able to dispose of their shares. Any periodic repurchase offers will be subject in part to our available cash and compliance with the 1940 Act.

Below is a summary of transactions with respect to shares of common stock during each tender offer:

Quarterly Offer Date	Repurchase Effective Date	Shares Repurchased	Percentage of Shares Tendered That Were Repurchased		Repurchase Price Per Share		Aggregate Consideration for Repurchased Shares
Three months ended September 30, 2023
September 30, 2023	July 31, 2023	19,963	7	%	$	6.09	$	121,569
Total for the three months ended September 30, 2023		19,963					$	121,569
Year ended June 30, 2023
December 31, 2022	November 7, 2022	23,434	11	%	$	6.65	155,832
September 30, 2022	August 1, 2022	21,818	9	%	$	6.99	152,505
Total for the year ended June 30, 2023		45,252					$	308,337

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTE 4 - RELATED PARTY TRANSACTIONS AND ARRANGEMENTS

Administration Agreement

The Administrator, an affiliate of the Adviser, became the administrator for the Company pursuant to an administrative agreement, as amended and restated as of June 17, 2019 (the "Administration Agreement"). The Administrator performs, oversees and arranges for the performance of administrative services necessary for the operation of the Company. These services include, but are not limited to, accounting, finance and legal services. For providing these services, facilities and personnel, the Company reimburses the Administrator for the Company’s actual and allocable portion of expenses and overhead incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and the Company’s allocable portion of the costs of its Chief Financial Officer and Chief Compliance Officer and her staff. For the three months ended September 30, 2023 and 2022, allocation of overhead from the Administrator to the Company was $223,750 and $60,582, respectively. During the three months ended September 30, 2023 and 2022, $8,750, respectively, of US Bank and BNY fees are being included within the Administrator costs incurred by the Company. As of September 30, 2023 and June 30, 2023, $1,087,384 and $868,634, respectively, was payable to the Administrator, US Bank and BNY by the Company.

Investment Advisory Agreement

On April 20, 2021, the Company entered into the Investment Advisory Agreement with the Adviser, which was unanimously approved by the Company’s Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), on February 18, 2021, subject to stockholder approval of the Investment Advisory Agreement. The Company’s stockholders approved the Investment Advisory Agreement at a Special Meeting of Stockholders held on March 31, 2021.

The Investment Advisory Agreement replaced the Former Investment Advisory Agreement with PFIM, the Company's former investment adviser, which terminated effective April 20, 2021. The Investment Advisory Agreement is identical in all material respects to the Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as the Company’s investment adviser instead of PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM.

On November 5, 2021, we amended and restated the Investment Advisory Agreement to reduce the advisory fees payable thereunder, effective as of January 1, 2022 and until the one year anniversary of the listing of our common stock on a national securities exchange (the “Listing Anniversary”), as further discussed below. The Amended and Restated Advisory Agreement was unanimously approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), and became effective on January 1, 2022. Under the Amended and Restated Advisory Agreement, we reduced the base management fee from an annual rate of 1.75% to 1.20% and eliminated the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. Until such effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. The Amended and Restated Advisory Agreement has an initial two-year term and may be continued thereafter for successive one-year periods if such continuance is approved in the manner provided for under Section 15 of the 1940 Act.

Each of these investment advisory agreements is further discussed below.

Former Investment Advisory Agreement

Pursuant to the Former Investment Advisory Agreement, we paid PFIM a fee for investment advisory and management services consisting of a base management fee and an incentive fee. The cost of both the base management fee payable to PFIM and any incentive fees it earned would ultimately be borne by our stockholders.

Base Management Fee. The base management fee was calculated at an annual rate of 1.75% (0.4375% quarterly) of our average total assets, which included any borrowings for investment purposes. For the first quarter of our operations following the Merger, the base management fee was calculated based on the average value of our total assets as of the date of the Former Investment Advisory Agreement and at the end of the calendar quarter in which the date of the Former Investment Advisory Agreement fell, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Subsequently, the base management fee was payable quarterly in arrears, and was calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter was appropriately pro-rated. At PFIM’s option, the base management fee for any period could be deferred, without interest thereon, and paid to PFIM at any time subsequent to any such deferral as PFIM determined.

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Incentive Fee. The incentive fee consisted of two parts: (1) the subordinated incentive fee on income and (2) the capital gains incentive fee.

Subordinated Incentive Fee on Income. The first part of the incentive fee, which is referred to as the subordinated incentive fee on income, was calculated and payable quarterly in arrears based upon our “pre-incentive fee net investment income” for the immediately preceding calendar quarter. For purposes of this fee, “pre-incentive fee net investment income” meant interest income, dividend income and distribution cash flows from equity investments and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we received) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses reimbursed under the Former Investment Advisory Agreement and the Administration Agreement, any interest expense and dividends paid on any issued and outstanding preferred shares, but excluding the organization and offering expenses and incentive fees on income and capital gains). Pre-incentive fee net investment income included, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we had not yet received in cash. Pre-incentive fee net investment income did not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. The subordinated incentive fee on income was subject to a quarterly fixed preferred return to investors, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, of 1.5% (6.0% annualized), subject to a “catch up” feature. Operating expenses were included in the calculation of the subordinated incentive fee on income.

We would pay PFIM a subordinated incentive fee on income for each calendar quarter as follows:

•No incentive fee would be payable to PFIM in any calendar quarter in which our pre-incentive fee net investment income did not exceed the preferred return rate of 1.5%.

•100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeded the preferred return but was less than or equal to 1.875% in any calendar quarter (7.5% annualized). We refer to this portion of our pre-incentive fee net investment income (which exceeded the preferred return but was less than or equal to 1.875%) as the “catch-up.” The effect of the “catch-up” provision was that, if our pre-incentive fee net investment income reached 1.875% in any calendar quarter, PFIM would receive 20.0% of our pre-incentive fee net investment income as if a preferred return did not apply.

•20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeded 1.875% in any calendar quarter (7.5% annualized) would be payable to PFIM. This reflected that once the preferred return was reached and the catch-up was achieved, 20.0% of all pre-incentive fee net investment income thereafter would be allocated to PFIM.

Capital Gains Incentive Fee. The second part of the incentive fee, which is referred to as the capital gains incentive fee, was determined and payable in arrears as of the end of each calendar year (or upon termination of the Former Investment Advisory Agreement, as of the termination date), and equaled 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year. In determining the capital gains incentive fee payable to PFIM, we would calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equaled the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed.

Aggregate realized capital losses equaled the sum of the amounts by which the aggregate net sales price of each investment was less than the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate unrealized capital depreciation equaled the sum of the differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis of such investment as of the applicable calendar year-end. At the end of the applicable calendar year, the amount of capital gains that served as the basis for our calculation of the capital gains incentive fee involved netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the aggregate unrealized capital depreciation. If this number was positive, then the capital gains incentive fee payable was equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception. Operating expenses were not taken into account when determining capital gains incentive fees.

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PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

Investment Advisory Agreement

Pursuant to the Investment Advisory Agreement, we pay the Adviser a fee for investment advisory and management services consisting of a base management fee and an incentive fee. The cost of both the base management fee payable to the Adviser and any incentive fees it earns will ultimately be borne by our stockholders. See "Amended and Restated Advisory Agreement" below for additional information.

Base Management Fee. The base management fee was calculated at an annual rate of 1.75% (0.4375% quarterly) of our average total assets, which includes any borrowings for investment purposes. For the first quarter of our operations commencing with the date of the Investment Advisory Agreement, the base management fee was calculated based on the average value of our total assets as of the date of the Investment Advisory Agreement and at the end of the calendar quarter in which the date of the Investment Advisory Agreement fell, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Subsequently, the base management fee is payable quarterly in arrears, and is calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and is appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter is appropriately pro-rated. At the Adviser’s option, the base management fee for any period may be deferred, without interest thereon, and paid to the Adviser at any time subsequent to any such deferral as the Adviser determines.

Incentive Fee. The incentive fee consisted of two parts: (1) the subordinated incentive fee on income and (2) the capital gains incentive fee.

Incentive Fee- Subordinated Incentive Fee on Income. The first part of the incentive fee, which is referred to as the subordinated incentive fee on income, is calculated and payable quarterly in arrears based upon our “pre-incentive fee net investment income” for the immediately preceding calendar quarter. For purpose of this fee “pre-incentive fee net investment income” means interest income, dividend income and distribution cash flows from equity investments and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses reimbursed under the Investment Advisory Agreement and the Administration Agreement, any interest expense and dividends paid on any issued and outstanding preferred shares, but excluding the organization and offering expenses and incentive fees on income and capital gains). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, is compared to a preferred return, or “hurdle,” of 1.5% per quarter (6.0% annualized) and a “catch-up” feature measured as of the end of each calendar quarter as discussed below. The subordinated incentive fee on income for each calendar quarter is paid to our Adviser as follows: (1) no incentive fee is payable to our Adviser in any calendar quarter in which our pre-incentive fee net investment income does not exceed the fixed preferred return rate of 1.5%; (2) 100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the fixed preferred return but is less than or equal to 1.875% in any calendar quarter (7.5% annualized); and (3) 20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 1.875% in any calendar quarter (7.5% annualized). This reflects that once the fixed preferred return is reached and the catch-up is achieved, 20.0% of all pre-incentive fee net investment income thereafter is allocated to our Adviser. These calculations are appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.

Incentive Fee- Capital Gains Incentive Fee. The second part of the incentive fee, which is referred to as the capital gains incentive fee, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year; provided that the incentive fee determined as of December 31, 2021 will be calculated for a period of shorter than twelve calendar months to take into account any net realized capital gains, if any, computed net of all realized capital losses and unrealized capital depreciation for the period commencing as of the date of the Investment Advisory Agreement and ending on December 31, 2021. In determining the capital gains incentive fee payable to our Adviser, we calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equal the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate realized capital losses equal the sum of the amounts by which the aggregate net sales price of each investment is less than the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate unrealized capital depreciation equals the sum of the differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

of such investment as of the applicable calendar year-end. At the end of the applicable calendar year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee involves netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the aggregate unrealized capital depreciation. If this number is positive, then the capital gains incentive fee payable is equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception. Operating expenses are not taken into account when determining capital gains incentive fees.

Amended and Restated Advisory Agreement

On November 5, 2021, we amended and restated the Investment Advisory Agreement to reduce the base management fee from an annual rate of 1.75% (0.4375% quarterly) to 1.20% (0.30% quarterly) and eliminate the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. As such, until the Listing Anniversary, the base management fee will be calculated at an annual rate of 1.20% (0.30% quarterly) and the Adviser will not be entitled to any incentive fee. Following the Listing Anniversary (1) the base management fee will be calculated at an annual rate of 1.75% (0.4375% quarterly), commencing with the first base management fee calculation that occurs after such anniversary, and (2) the Adviser will be entitled to receive the same incentive fee, including the subordinated incentive fee on income and the capital gains incentive fee, as set forth in the Investment Advisory Agreement and discussed above, commencing with the first calendar quarter after such anniversary. The Amended and Restated Advisory Agreement became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. See “Investment Advisory Agreement” above.

During the three months ended September 30, 2023 and 2022, the total base management fee incurred by the Adviser was $83,359 and $112,434, respectively, which were waived by the Adviser. As of September 30, 2023 and June 30, 2023, the total base management fee due to the Adviser after the waiver was $0.

There were no incentive fees payable as of September 30, 2023 or June 30, 2023. During the three months ended September 30, 2023 and 2022, there were no incentive fees incurred.

Co-Investments

On January 13, 2020, (amended on August 2, 2022), the parent company of the Adviser received an exemptive order from the SEC (the “Order”),which superseded a prior co-investment exemptive order granted on February 10, 2014, granting the ability to negotiate terms other than price and quantity of co-investment transactions with other funds managed by the Adviser or certain affiliates, including Prospect Capital Corporation (“PSEC”) and Priority Income Fund, Inc. (“PRIS”), where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions included therein.

Under the terms of the relief permitting us to co-invest with other funds managed by our Investment Adviser or its affiliates, a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company’s independent directors must make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching of the Company or its stockholders on the part of any person concerned and (2) the transaction is consistent with the interests of the Company’s stockholders and is consistent with the Company’s investment objective and strategies. In certain situations where co-investment with one or more funds managed by the Adviser or its affiliates is not covered by the Order, such as when there is an opportunity to invest in different securities of the same issuer, the personnel of the Adviser or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. Moreover, except in certain circumstances, when relying on the Order, the Company will be unable to invest in any issuer in which one or more funds managed or owned by the Adviser or its affiliates has previously invested.                            

Officers and Directors

Certain officers and directors of the Company are also officers and directors of the Adviser and its affiliates. There were no fees paid to the independent directors of the Company as the Company did not exceed the minimum net asset value required (i.e., greater than $100 million) to receive a fee for the three months ended September 30, 2023 and 2022. The officers do not receive any direct compensation from the Company.                                                    

Expense Limitation and Expense Reimbursement Agreements                                    

Former Expense Limitation Agreement with PFIM

Concurrently with the closing of the Merger, we entered into an expense limitation agreement, dated March 31, 2019 (the "Former ELA") with PFIM. On April 30, 2020, the Company's Board of Directors approved extending the Former ELA for an

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PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

additional 12-month term ending on April 30, 2021. On and effective February 17, 2021, the Former ELA was terminated in accordance with its terms.

Pursuant to the Former ELA, PFIM, in its sole discretion, could waive a portion or all of the investment advisory fees that it was entitled to receive pursuant to the Investment Advisory Agreement in order to limit our Operating Expenses (as defined below) to an annual rate, expressed as a percentage of our average quarterly net assets, equal to 8.00% (the “Annual Limit”). For purposes of the Former ELA, the term “Operating Expenses” with respect to the Company, was defined to include all expenses necessary or appropriate for the operation of the Company, including but not limited to PFIM’s base management fee, any and all costs and expenses that qualified as line item “organization and offering” expenses in the consolidated financial statements of the Company as the same were filed with the SEC and other expenses described in the Former Investment Advisory Agreement, but did not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses (such as sales commissions, dealer manager fees, and similar expenses) were not Operating Expenses. During the three months ended September 30, 2023 and 2022, there were no base management fees incurred by PFIM.

Any amount waived pursuant to the Former ELA is subject to repayment to PFIM (a “Former ELA Reimbursement”) by us within the three years following the end of the quarter in which the waiver was made by PFIM. Although the Former ELA terminated effective February 17, 2021, PFIM maintains its right to repayment for any waiver it has made under the Former ELA, subject to the Repayment Limitations (discussed below).

A Former ELA Reimbursement can be made solely in the event that we have sufficient excess cash on hand at the time of any proposed ELA Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such quarter over the Company’s actual Operating Expenses for such quarter and (ii) the amount of Former ELA Reimbursement which, when added to the Company’s expenses for such quarter, permits the Company to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Company shares) (the “Distribution”) from the sum of (x) the Company’s net investment income (loss) for such quarter plus (y) the Company’s net realized gains (losses) for such quarter (collectively, the “Repayment Limitations”). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any Former ELA Reimbursement will be treated as an expense of the Company for such quarter, without regard to the GAAP treatment of such expense. To the extent the Company books accruals for any such reimbursements, such accruals shall be booked in accordance with GAAP.  In the event that the Company is unable to make a full payment of any Former ELA Reimbursements due for any applicable quarter because the Company does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Company for accounting purposes and shall be paid when the Company has sufficient cash on hand (subject to the Repayment Limitations); provided, that in the case of any Former ELA Reimbursements, such payment shall be made no later than the date that is three years following the end of the quarter in which the applicable waiver was made by our Adviser.

The following table provides information regarding liabilities incurred by PFIM pursuant to the Former ELA:

Period Ended		Former ELA Reimbursement Payable to PFIM		Former ELA Reimbursement Payment to PFIM	Unreimbursed Former ELA Reimbursement		Operating Expense Ratio	Annualized Distribution Rate	Eligible to be Repaid Through
September 30, 2020	(1)	$	183,386	—	$	183,386	4.33%	7.00%	September 30, 2023
December 31, 2020		—		—	—		—%	—%	N/A
March 31, 2021		—		—	—		—%	—%	N/A
June 30, 2021		—		—	—		—%	—%	N/A
Total		$	183,386		$	183,386
(1)	No longer eligible to be repaid.

Expense Limitation Agreement with the Adviser

On and effective April 20, 2021, we entered into a new expense limitation agreement with the Adviser, which replaced the Former ELA with PFIM and was amended and restated on July 7, 2021 to extend the period during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement, from September 30, 2021 to June 30, 2022 (the "First Amended and Restated ELA"). On August 23, 2022, we entered into the Second Amended and Restated Expense Limitation Agreement (the "Second Amended and Restated ELA") to extend the period during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement from June 30, 2022 to December 31, 2022. On April 24, 2023, we entered into a Third Amended and Restated Expense Limitation Agreement (the “Third Amended and Restated ELA” and, together with the First Amended and Restated ELA and the Second Amended and Restated ELA, the "New ELA") to extend the period during which the Adviser will be required to waive its investment advisory fees

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

under the Investment Advisory Agreement from December 31, 2022 to June 30, 2024, as discussed below. Other than this change, the terms and conditions of the Third Amended and Restated ELA are identical to those of the First and Second Amended and Restated ELAs.The New ELA has an initial term ending on June 30, 2024 and may be continued thereafter for successive one-year periods in accordance with its terms.

Pursuant to the New ELA, our Adviser waived a portion or all of the investment advisory fees that it was entitled to receive pursuant to the Investment Advisory Agreement, from the effective date of the New ELA through June 30, 2024, in order to limit our Operating Expenses (as defined below) to an annual rate, expressed as a percentage of our average quarterly net assets, equal to 8.00% (the “Annual Limit”). After June 30, 2024, such waiver may be made at our Adviser’s option and in its sole discretion. Even if the Adviser decides to voluntarily waive its investment advisory fees for a quarter ended after June 30, 2024, there is no guarantee that the Adviser will continue to do so. For purposes of the New ELA, the term “Operating Expenses” with respect to the Company, is defined to include all expenses necessary or appropriate for the operation of the Company, including but not limited to our Adviser’s base management fee, any and all costs and expenses that qualify as line item “organization and offering” expenses in the consolidated financial statements of the Company as the same are filed with the SEC and other expenses described in the Investment Advisory Agreement, but does not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses, such as sales commissions, dealer manager fees and similar expenses, are not Operating Expenses. Our Adviser waived fees, pursuant to the New ELA, in an amount of $83,359 and $112,434 for the three months ended September 30, 2023 and 2022, respectively.

Any amount waived pursuant to the New ELA is subject to repayment to our Adviser (an “ELA Reimbursement”) by us within the three years of the date on which the waiver was made by our Adviser. If the New ELA is terminated or expires pursuant to its terms, our Adviser will maintain its right to repayment for any waiver it has made under the New ELA, subject to the Repayment Limitations (discussed below).

Any ELA Reimbursement can be made solely in the event that we have sufficient excess cash on hand at the time of any proposed ELA Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such quarter over the Company’s actual Operating Expenses for such quarter and (ii) the amount of ELA Reimbursement which, when added to the Company’s expenses for such quarter, permits the Company to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Company shares) (the “Distribution”) from the sum of (x) the Company’s net investment income (loss) for such quarter plus (y) the Company’s net realized gains (losses) for such quarter (collectively, the “Repayment Limitations”). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any ELA Reimbursement will be treated as an expense of the Company for such quarter. In the event that the Company is unable to make a full payment of any ELA Reimbursements due for any applicable quarter because the Company does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Company for accounting purposes and shall be paid when the Company has sufficient cash on hand (subject to the Repayment Limitations); provided, that in the case of any ELA Reimbursements, such payment shall be made no later than the date that is three years after the date on which the applicable waiver was made by our Adviser.

Period Ended	ELA Reimbursement Payable to the Adviser		ELA Reimbursement Payment to the Adviser		Unreimbursed ELA Reimbursement		Operating Expense Ratio	Annualized Distribution Rate	Eligible to be Repaid Through
June 30, 2021	$	144,073	$	—	$	144,073	4.04%	8.11%	June 30, 2024
September 30, 2021	182,198		—		182,198		2.97%	7.08%	September 30, 2024
December 31, 2021	184,999		—		184,999		3.00%	7.10%	December 31, 2024
March 31, 2022	125,720		—		125,720		2.70%	7.22%	March 31, 2025
June 30, 2022	118,220		—		118,220		3.52%	7.87%	June 30, 2025
September 30, 2022	112,434		—		112,434		3.48%	7.38%	September 30, 2025
December 31, 2022	105,950		—		105,950		3.30%	7.49%	December 31, 2025
March 31, 2023	105,279		—		105,279		3.33%	7.18%	March 31, 2026
June 30, 2023	99,018		—		99,018		2.79%	6.97%	June 30, 2026
September 30, 2023	83,359		—		83,359		4.06%	7.85%	September 30, 2026
Total	$	1,261,250			$	1,261,250

26

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

License Agreement

We entered into a license agreement with an affiliate of our Adviser, pursuant to which the affiliate granted us a non-exclusive, royalty free license to use the “Prospect” name. Under this license agreement, we have the right to use such name for so long as our Adviser or another affiliate of the Adviser is our investment adviser. Other than with respect to this limited license, we have no legal right to the “Prospect” name or logo.

NOTE 5 - DISTRIBUTIONS

The following table reflects the cash distributions per share that the Company declared on its common stock during the three months ended September 30, 2023 and 2022: 

	Distributions
For the Three Months Ended	PFLOAT Class A Common Shares, per share		PFLOAT Class A Common Shares, Amount Distributed
September 30, 2023
July 28, 2023	$	0.03260	$	78,129
August 25, 2023	0.03260		78,313
September 29, 2023	0.04095		98,612
Total for the Three Months Ended September 30, 2023			$	255,054

	Distributions
For the Three Months Ended	PFLOAT Class A Common Shares, per share		PFLOAT Class A Common Shares, Amount Distributed
September 30, 2022
July 29, 2022	$	0.05305	$	126,365
August 26, 2022	0.04244		100,522
September 30, 2022	0.04720		112,101
Total for the Three Months Ended September 30, 2022			$	338,988

The Company has adopted an “opt in” distribution reinvestment plan for its stockholders. As a result, if the Company makes a cash distribution, its stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of the Company’s common stock. However, certain state authorities or regulators may impose restrictions from time to time that may prevent or limit a stockholder’s ability to participate in the distribution reinvestment plan.

The Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies and expense reimbursements from the Adviser. The Company has not established limits on the amount of funds it may use from available sources to make distributions.

During the three months ended September 30, 2023 and 2022 the Company's officers and directors did not purchase any shares of our stock.

NOTE 6 - INCOME TAXES

While our fiscal year end for financial reporting purposes is June 30 of each year, our tax year end is December 31 of each year. The information presented in this footnote is based on our tax year end for each period presented, unless otherwise specified.

For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or combination thereof.

27

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

The tax character of distributions paid to the Company's shareholders during the tax years ended December 31, 2022 and 2021 were as follows:

	Tax Year Ended
	December 31, 2022			December 31, 2021
Ordinary income	$	1,195,912		$	647,336
Return of capital	131,777			926,844
Total distributions paid to stockholders	$	1,327,689	(1)	$	1,574,180	(2)

(1)    For the tax year ended December 31, 2022, $80,441 of the 2021 declared distributions are allocable to 2022 for federal income tax purposes and are reported on the 2022 Form 1099-DIV. For the tax year ended December 31, 2022, $22,758 of the 2022 declared distributions are allocable to 2023 for federal income tax purposes and will be reported on the 2023 Form 1099-DIV.

(2)    For the tax year ended December 31, 2021, $97,268 of the 2020 declared distributions are allocable to 2021 for federal income tax purposes and was reported on the 2021 Form 1099-DIV. For the tax year ended December 31, 2021, $80,441 of the 2021 declared distributions are allocable to 2022 for federal income tax purposes and are reported on the 2022 Form 1099-DIV.

For the tax year ending December 31, 2023, the tax character of distributions paid to stockholders through September 30, 2023 is expected to be ordinary income and return of capital. However, the final determination of the tax character of distributions between ordinary income and return of capital will not be made until we file our tax return for the tax year ending December 31, 2023.

As of September 6, 2022 when our prior Form 10-K was filed for the year ended June 30, 2022, we estimated our distributions for the fiscal and tax years disclosed therein to be distributions of return of capital. Subsequent to our filing date, we obtained more information from our underlying investments as to the character of the distributions for the tax year ended December 31, 2022, which resulted in changes to distributions previously disclosed in our Form 10-K filing. As a result of the change, our total distributable loss on our Consolidated Statements of Assets and Liabilities for the year ended June 30, 2022 changed from $8,511,366 to $8,489,742, with $21,624 being reclassified to return of capital from ordinary income.

The Company's cost basis of investments as of September 30, 2023 for tax purposes was $19,081,212, resulting in an estimated net unrealized loss of $1,990,492. The gross unrealized gains and losses as of September 30, 2023 were $474,796 and $2,465,288, respectively. The Company's cost basis of investments as of June 30, 2023 for tax purposes was $24,297,629, resulting in an estimated net unrealized loss of $2,382,442. The gross unrealized gains and losses as of June 30, 2023 were $481,915 and $2,864,357, respectively.

Taxable income generally differs from net increase (decrease) in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The following reconciles the net increase (decrease) in net assets resulting from operations to taxable income for the tax years ended December 31, 2022 and 2021.

	Tax Year Ended December 31, 2022		Tax Year Ended December 31, 2021
Net increase (decrease) in net assets resulting from operations	$	(3,303,225)	$	483,361
Net realized (gains) losses on investments	147,942		41,280
Net change in unrealized (gains) losses on investments	3,461,044		124,952
Other temporary book-to-tax differences	27,795		231,758
Permanent differences	155,829		318,847
Taxable income (loss) before deductions for distributions	$	489,385	$	1,200,198

Capital losses in excess of capital gains earned in a tax year may generally be carried forward and used to offset capital gains, subject to certain limitations. For the tax year ended December 31, 2022 and December 31, 2021, we had capital loss carryforwards of $4,290,349 and $4,164,261, respectively, available for use in later tax years. The unused balance each year will be carried forward and utilized as gains are realized, subject to limitations. While our ability to utilize losses in the future depends upon a variety of factors that cannot be known in advance, some of the Company’s capital loss carryforwards may become permanently unavailable due to limitations by the Code.

As of our most recent tax year ended December 31, 2022, we had no undistributed ordinary income in excess of cumulative distributions and no capital gain in excess of cumulative distributions.

28

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

	Tax Year Ended December 31, 2022
Undistributed ordinary income	$	—
Undistributed long-term capital gains	$	—
Capital loss carryforwards	$	(4,290,349)

In general, we make certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which may include merger-related items, differences in the book and tax basis of certain assets and liabilities, amortization of offering costs, expense payments, nondeductible federal excise taxes and net operating losses, among other items. During the tax year ended December 31, 2022, we increased overdistributed net investment income by $155,829 and decreased capital in excess of par value by $155,829. During the tax year ended December 31, 2021, we increased overdistributed net investment income by $318,847 and decreased capital in excess of par value by $318,847. Due to the difference between our fiscal and tax year end, the reclassifications for the taxable year ended December 31, 2022 are being recorded in the fiscal year ending June 30, 2023 and the reclassifications for the taxable year ended December 31, 2021 were recorded in the fiscal year ended June 30, 2022.

NOTE 7 - INVESTMENT PORTFOLIO                                                

The original cost basis of debt placement and equity securities acquired, including follow-on investments for existing portfolio companies, payment-in-kind interest, and structuring fees, totaled $21,994 and $162 during the three months ended September 30, 2023 and 2022, respectively.The original cost basis of debt placement and equity securities disposed from noncash restructured investments totaled $997,560 and $0 during the three months ended September 30, 2023 and 2022, respectively. Debt repayments and considerations from sales of debt and equity securities, excluding noncash restructured investments, of approximately $3,641,054 and $1,358,587 were received during the three months ended September 30, 2023 and 2022, respectively. Debt repayments and considerations from sales of debt and equity securities, including noncash restructured investments, of approximately $4,638,614 and $1,358,587 were received during the three months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023 and June 30, 2023, 95% and 97%, respectively, of the Company's portfolio was invested in floating rate investments based on fair value, totaling $16,180,247 and $21,165,192, respectively. As of September 30, 2023 and June 30, 2023, 89% and 94%, respectively, of the Company's portfolio was invested in floating rate investments based on amortized cost, totaling $18,964,483 and $23,968,381, respectively.

The following tables summarize the composition of the Company’s investment portfolio at amortized cost and fair value as of September 30, 2023 and June 30, 2023:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

	September 30, 2023
	Investments at Amortized Cost(1)		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Senior Secured Loans-First Lien	$	11,590,740	$	10,768,957	63	%
Senior Secured Loans-Second Lien	1,777,299		1,378,000		8	%
Senior Secured Notes	752,749		290,152		2	%
Structured Subordinated Notes	5,596,444		4,033,290		24	%
Equity/Other	1,667,943		620,319		3	%
Total Portfolio Investments	$	21,385,175	$	17,090,718	100	%
	June 30, 2023
	Investments at Amortized Cost(1)		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Senior Secured Loans-First Lien	$	16,445,667	$	15,362,386	70	%
Senior Secured Loans-Second Lien	1,758,303		1,416,049		7	%
Senior Secured Notes	752,867		271,899		1	%
Structured Subordinated Notes	5,764,411		4,386,757		20	%
Equity/Other	670,383		478,096		2	%
Total Portfolio Investments	$	25,391,631	$	21,915,187	100	%
(1) Amortized cost represents the original cost adjusted for PIK interest and the amortization of premiums and/or accretion of discounts, as applicable, on investments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of September 30, 2023 and June 30, 2023:

	September 30, 2023
Industry	Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	4,033,290	24	%
Healthcare & Pharmaceuticals	2,528,662		15	%
Services: Business	2,381,446		14	%
Telecommunications	2,287,216		13	%
Media: Diversified and Production	1,378,000		8	%
Services: Consumer	1,360,476		8	%
Media: Broadcasting & Subscription	975,050		6	%
Beverage, Food & Tobacco	$	938,763	5	%
Wholesale	865,844		5	%
Financial	290,152		2	%
Consumer goods: Non-Durable	42,300		—	%
Retail	9,519		—	%
Total	$	17,090,718	100	%
	June 30, 2023
Industry	Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	4,386,757	20	%
Healthcare & Pharmaceuticals	2,880,134		13	%
Services: Consumer	2,741,742		13	%
Services: Business	2,507,919		11	%
Telecommunications	2,324,213		11	%
Wholesale	1,662,469		8	%
Media: Diversified and Production	1,416,049		7	%
Media: Broadcasting & Subscription	971,690		4	%
Beverage, Food & Tobacco	920,151		4	%
Consumer goods: Durable	678,492		3	%
Consumer goods: Non-Durable	669,880		3	%
Automotive	470,696		2	%
Financial	271,899		1	%
Retail	13,096		—	%
Total	$	21,915,187	100	%

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the fair value of our investments that are measured at fair value on a recurring basis disaggregated into the three levels of the ASC 820 valuation hierarchy as of September 30, 2023 and June 30, 2023, respectively:

	As of September 30, 2023
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Senior Secured Loans-First Lien	$	—	$	1,604,613	$	9,164,344	$	10,768,957
Senior Secured Loans-Second Lien	—		—		1,378,000		1,378,000
Senior Secured Notes	—		—		290,152		290,152
Structured Subordinated Notes	—		—		4,033,290		4,033,290
Equity/Other	—		—		620,319		620,319
Total Portfolio Investments	$	—	$	1,604,613	$	15,486,105	$	17,090,718
	As of June 30, 2023
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Senior Secured Loans-First Lien	$	—	$	2,129,472	$	13,232,914	$	15,362,386
Senior Secured Loans-Second Lien	—		—		1,416,049		1,416,049
Senior Secured Notes	—		—		271,899		271,899
Structured Subordinated Notes	—		—		4,386,757		4,386,757
Equity/Other	—		—		478,096		478,096
Total Portfolio Investments	$	—	$	2,129,472	$	19,785,715	$	21,915,187

Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, management and the independent valuation firm look at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. These investments are classified as Level 1 or Level 2 in the fair value hierarchy.

The fair value of debt investments specifically classified as Level 2 in the fair value hierarchy are generally valued by an independent pricing agent or more than one principal market maker, if available, otherwise a principal market maker or a primary market dealer. We generally value over-the-counter securities by using the prevailing bid and ask prices from dealers during the relevant period end, which were provided by an independent pricing agent and screened for validity by such service.

In determining the range of values for debt instruments where market quotations are not available, and are therefore classified as Level 3 in the fair value hierarchy, except CLOs and debt investments in controlling portfolio companies, management and the independent valuation firm estimated corporate and security credit ratings and identified corresponding yields to maturity for each loan from relevant market data. A discounted cash flow technique was then applied using the appropriate yield to maturity as the discount rate, to determine a range of values. In determining the range of values for equity investments of portfolio companies , the enterprise value was determined by applying a market approach such as using earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, net income and/or book value multiples for similar guideline public companies and/or similar recent investment transactions and/or an income approach, such as the discounted cash flow technique. The enterprise value technique may also be used to value debt investments which are credit impaired. For stressed debt and equity investments, asset recovery analysis was used.

In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, which consider relevant data in the CLO market and certain benchmark credit indices, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and

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PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

assess the reasonableness of the implied discount rate that would be effective for the value derived from the corresponding multi-path cash flow model.

Our portfolio consists of residual interests in CLOs, which involve a number of significant risks. CLOs are typically very highly levered (10 - 14 times), and therefore the residual interest tranches that we invest in are subject to a higher degree of risk of total loss. In particular, investors in CLO residual interests indirectly bear risks of the underlying loan investments held by such CLOs. We generally have the right to receive payments only from the CLOs, and generally do not have direct rights against the underlying borrowers or the entity that sponsored the CLOs. While the CLOs we target generally enable the investor to acquire interests in a pool of senior loans without the expenses associated with directly holding the same investments, the prices of indices and securities underlying our CLOs will rise or fall. These prices (and, therefore, the prices of the CLOs) will be influenced by the same types of political and economic events that affect issuers of securities and capital markets generally. The failure by a CLO investment in which we invest to satisfy financial covenants, including with respect to adequate collateralization and/or interest coverage tests, could lead to a reduction in its payments to us. In the event that a CLO fails certain tests, holders of debt senior to us would be entitled to additional payments that would, in turn, reduce the payments we would otherwise be entitled to receive. Separately, we may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting CLO or any other investment we may make. If any of these occur, it could materially and adversely affect our operating results and cash flows.

The interests we have acquired in CLOs are generally thinly traded or have only a limited trading market. CLOs are typically privately offered and sold, even in the secondary market. As a result, investments in CLOs may be characterized as illiquid securities. In addition to the general risks associated with investing in debt securities, CLO residual interests carry additional risks, including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) our investments in CLO tranches will likely be subordinate to other senior classes of note tranches thereof; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the CLO investment or unexpected investment results. Our net asset value may also decline over time if our principal recovery with respect to CLO residual interests is less than the cost of those investments. Our CLO investments and/or the CLOs’ underlying senior secured loans may prepay more quickly than expected, which could have an adverse impact on our value. These investments are classified as Level 3 in the fair value hierarchy.

An increase in interest rates would materially increase the CLO’s financing costs. Since most of the collateral positions within the CLOs have interest rate floors, there may not be corresponding increases in investment income (if interest rates increase but stay below the interest rate floor of such investments) resulting in materially smaller distribution payments to the residual interest investors.

We hold more than a 10% interest in certain foreign corporations that are treated as controlled foreign corporations (“CFC”) for U.S. federal income tax purposes (including our residual interest tranche investments in CLOs). Therefore, we are treated as receiving a deemed distribution (taxable as ordinary income) each year from such foreign corporations in an amount equal to our pro rata share of the corporation’s income for that tax year (including both ordinary earnings and capital gains). We are required to include such deemed distributions from a CFC in our taxable income and we are required to distribute at least 90% of such income to maintain our RIC status, regardless of whether or not the CFC makes an actual distribution during such year.

If we acquire shares in “passive foreign investment companies” (“PFICs”) (including residual interest tranche investments in CLOs that are PFICs), we may be subject to federal income tax on a portion of any “excess distribution” or gain from the disposition of such shares even if such income is distributed as a taxable dividend to our stockholders. Certain elections may be available to mitigate or eliminate such tax on excess distributions, but such elections (if available) will generally require us to recognize our share of the PFIC’s income for each year regardless of whether we receive any distributions from such PFICs. We must nonetheless distribute such income to maintain our status as a RIC.

Legislation known as FATCA and regulations thereunder impose a withholding tax of 30% on payments of U.S. source interest and dividends to certain non-U.S. entities, including certain non-U.S. financial institutions and investment funds, unless such non-U.S. entity complies with certain reporting requirements regarding its United States account holders and its United States owners. Most CLOs in which we invest will be treated as non-U.S. financial entities for this purpose, and therefore will be required to comply with these reporting requirements to avoid the 30% withholding. If a CLO in which we invest fails to properly comply with these reporting requirements, it could reduce the amounts available to distribute to residual interest and junior debt holders in such CLO vehicle, which could materially and adversely affect our operating results and cash flows.

If we are required to include amounts in income prior to receiving distributions representing such income, we may have to sell some of our investments at times and/or at prices management would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities for this purpose.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

A portion of the Company’s portfolio is concentrated in CLOs, which is subject to a risk of loss if that sector experiences a market downturn. The Company is subject to credit risk in the normal course of pursuing its investment objectives. The Company’s maximum risk of loss from credit risk for the portfolio of CLO investments is the inability of the CLOs collateral managers to return up to the cost value due to defaults occurring in the underlying loans of the CLOs.                                                 

Investments in CLOs residual interests generally offer less liquidity than other investment grade or high-yield corporate debt, and may be subject to certain transfer restrictions. The Company’s ability to sell certain investments quickly in response to changes in economic and other conditions and to receive a fair price when selling such investments may be limited, which could prevent the Company from making sales to mitigate losses on such investments. In addition, CLOs are subject to the possibility of liquidation upon an event of default of certain minimum required coverage ratios, which could result in full loss of value to the CLOs interests and junior debt investors.

The fair value of the Company’s investments may be significantly affected by changes in interest rates. The Company’s investments in senior secured loans through CLOs are sensitive to interest rate levels and volatility. In the event of a significant rising interest rate environment and/or economic downturn, loan defaults may increase and result in credit losses which may adversely affect the Company’s cash flow, fair value of its investments and operating results. In the event of a declining interest rate environment, a faster than anticipated rate of prepayments is likely to result in a lower than anticipated yield.

The significant unobservable input used to value our investments based on the yield technique and discounted cash flow technique is the market yield (or applicable discount rate) used to discount the estimated future cash flows expected to be received from the underlying investment, which includes both future principal and interest/dividend payments. Increases or decreases in the market yield (or applicable discount rate) would result in a decrease or increase, respectively, in the fair value measurement. Management and the independent valuation firms may consider the following factors when selecting market yields or discount rates: risk of default, rating of the investment and comparable company investments, and call provisions.

The significant unobservable inputs used to value our investments based on the EV analysis may include market multiples of specified financial measures such as EBITDA, net income, or book value of identified guideline public companies, implied valuation multiples from precedent M&A transactions, and/or discount rates applied in a discounted cash flow technique. The independent valuation firm identifies a population of publicly traded companies with similar operations and key attributes to that of the portfolio company. Using valuation and operating metrics of these guideline public companies and/or as implied by relevant precedent transactions, a range of multiples of the latest twelve months EBITDA, or other measure such as net income or book value, is typically calculated. The independent valuation firm utilizes the determined multiples to estimate the portfolio company’s EV generally based on the latest twelve months EBITDA of the portfolio company (or other meaningful measure). Increases or decreases in the multiple would result in an increase or decrease, respectively, in EV which would result in an increase or decrease in the fair value measurement of the debt of controlled companies and/or equity investment, as applicable. In certain instances, a discounted cash flow analysis may be considered in estimating EV, in which case, discount rates based on a weighted average cost of capital and application of the capital asset pricing model may be utilized.

Changes in market yields, discount rates, EBITDA multiples, each in isolation, may change the fair value measurement of certain of our investments. Generally, an increase in market yields, discount rates, or a decrease in EBITDA (or other) multiples may result in a decrease in the fair value measurement of certain of our investments.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations.

Changes in Valuation Techniques

During the three months ended September 30, 2023, the valuation methodology for DTI Holdco, Inc. (“DTI Holdco”) for the First Lien Term Loan changed from using a combination of the yield method approach and market quotes to solely using market quotes, since market quotes were more active in the current period. As a result of a tightening credit market spreads and an increase in the quoted price of the First Lien Term Loan, the fair value of our investment in DTI Holdco increased to $738,769 as of September 30, 2023, a premium of $14,068 from its amortized cost, compared to the $(17,735) unrealized depreciation recorded at June 30, 2023.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

The following table shows industries that comprise of greater than 10% of our portfolio at fair value as of September 30, 2023 and June 30, 2023:

	September 30, 2023
	Cost		Fair Value		% of Portfolio
Healthcare & Pharmaceuticals	$	2,463,150	$	2,528,662	15	%
Services: Business	2,638,746		2,381,446		14	%
Telecommunications	2,284,841		2,287,216		13	%
All Other Industries	13,998,438		9,893,394		58	%
Total	$	21,385,175	$	17,090,718	100	%

	June 30, 2023
	Cost		Fair Value		% of Portfolio
Healthcare & Pharmaceuticals	$	2,942,734	$	2,880,134	13	%
Services: Consumer	3,004,329		2,741,742		13	%
Services: Business	2,647,846		2,507,919		11	%
Telecommunications	2,283,486		2,324,213		11	%
All Other Industries	14,513,236		11,461,179		52	%
Total	$	25,391,631	$	21,915,187	100	%

As of September 30, 2023, investments in California, Tennessee, and Texas comprised 13.8%, 11.5% and 11.0%, respectively, of our investments at fair value, with a cost of $2,750,213, $1,990,793 and $1,873,189, respectively, and a fair value of $2,353,050, $1,960,162 and $1,877,365, respectively. As of June 30, 2023 investments in Tennessee, California and Connecticut comprised, 12.0%, 10.9% and 10.3%, respectively, of our investments at fair value, with a cost of $2,698,856, $2,735,828 and $2,395,186, respectively, and a fair value of , $2,626,623, $2,387,739 and $2,264,823, respectively.

The following is a reconciliation for the three months ended September 30, 2023 and 2022 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

35

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

	Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
	Senior Secured Loans - First Lien		Senior Secured Loans - Second Lien		Senior Secured Notes		Structured Subordinated Notes		Equity/Other		Total
Fair Value at June 30, 2023	$	13,232,914	$	1,416,049	$	271,899	$	4,386,757	$	478,096	$	19,785,715
Net realized gains (losses) on investments	(82,766)		—		—		—		—		(82,766)
Net change in unrealized gains (losses) on investments	(234,162)		(57,046)		18,370		(185,499)		(855,337)		(1,313,674)
Net realized and unrealized gains (losses) on investments	(316,928)		(57,046)		18,370		(185,499)		(855,337)		(1,396,440)
Restructuring of investments	(669,880)		—		—		—		997,560		327,680
Payment-in-kind interest	—		21,994		—		—		—		21,994
Accretion (amortization) of purchase discount and premium, net	645		(2,997)		(117)		(167,968)		—		(170,437)
Repayments and sales of portfolio investments	(2,372,308)		—		—		—		—		(2,372,308)
Transfers into Level 3(1)	—		—		—		—		—		—
Transfers out of Level 3(1)	(710,099)		—		—		—		—		(710,099)
Fair Value at September 30, 2023	$	9,164,344	$	1,378,000	$	290,152	$	4,033,290	$	620,319	$	15,486,105
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	$	(304,434)	$	(57,046)	$	18,370	$	(185,499)	$	(855,337)	$	(1,383,946)
(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the quarter ended September 30, 2023, one of our first lien loans transferred out of Level 3 to Level 2 due to a more significant level of market activity during the period and thus this investment was valued using observable inputs such as trades from an independent pricing service.

	Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
	Senior Secured Loans - First Lien		Senior Secured Loans - Second Lien		Structured Subordinated Notes		Equity/Other		Total
Fair Value at June 30, 2022	$	19,951,625	$	511,464	$	5,126,749	$	641,000	$	26,230,838
Net realized gains on investments	—		—		—		—		—
Net change in unrealized gains (losses) on investments	(225,003)		(18,186)		(150,209)		(77,522)		(470,920)
Net realized and unrealized gains (losses) on investments	(225,003)		(18,186)		(150,209)		(77,522)		(470,920)
Payment-in-kind interest	—		162		—		—		162
Accretion (amortization) of purchase discount and premium, net	15,191		2,402		(74,056)		—		(56,463)
Repayments and sales of portfolio investments	(1,310,252)		(13,342)		—		(10,728)		(1,334,322)
Transfers into Level 3(1)	1,702,829		—		—		—		1,702,829
Transfers out of Level 3(1)	(1,407,887)		—		—		—		(1,407,887)
Fair Value at September 30, 2022	$	18,726,503	$	482,500	$	4,902,484	$	552,750	$	24,664,237
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	$	(236,930)	$	(19,070)	$	(150,209)	$	(77,522)	$	(483,731)
(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the quarter ended September 30, 2022, one of our first lien loans transferred out of Level 2 to Level 3 due to a less significant level of market activity during the period and thus for these investments there were less observable inputs such as trades from independent pricing services. During the quarter ended September 30, 2022, one of our first lien loans transferred out of Level 3 to Level 2 due to a more significant level of market activity during the period and thus this investment was valued using observable inputs such as trades from an independent pricing service.

The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of September 30, 2023:

36

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

				Unobservable Inputs
Asset Category	Fair Value		Primary Valuation Technique	Inputs	Range				Weighted Average
Senior Secured First Lien Debt	$	331,071	Sensitivity Analysis (Current Value Method)	Enterprise Values	5.50x	to	6.50x		6.00x
Senior Secured First Lien Debt	8,833,273		Discounted Cash Flow (Yield Analysis)	Market Yield	9.63%	to	19.25%		13.81%
Senior Secured Second Lien Debt	1,378,000		Discounted Cash Flow (Yield Analysis)	Market Yield	14.67%	to	14.98%		14.83%
Senior Secured Notes	290,152		Discounted Cash Flow (Yield Analysis)	Market Yield	32.75%	to	33.34%		33.04%
Equity/Other	620,319		Enterprise Value Waterfall (Market Approach)	EBITDA multiples (x)	0.40x	to	9.25x		7.91x
Subordinated Structured Notes	4,033,290		Discounted Cash Flow	Discount Rate	17.14%	to	32.91%	(1)	24.83%	(1)
	$	15,486,105
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.

The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of June 30, 2023:

				Unobservable Inputs
Asset Category	Fair Value		Primary Valuation Technique	Inputs	Range				Weighted Average
Senior Secured First Lien Debt	$	499,544	Sensitivity Analysis (Current Value Method)	Enterprise Values	4.00x	to	5.00x		5.00x
Senior Secured First Lien Debt	12,733,370		Discounted Cash Flow (Yield Analysis)	Market Yield	8.91%	to	20.07%		13.12%
Senior Secured Second Lien Debt	1,416,049		Discounted Cash Flow (Yield Analysis)	Market Yield	16.00%	to	16.70%		16.4%
Senior Secured Notes	271,899		Discounted Cash Flow (Yield Analysis)	Market Yield	33.96%	to	34.28%		34.12%
Equity/Other	478,096		Enterprise Value Waterfall (Market Approach)	EBITDA multiples (x)	5.25x	to	9.25x		8.42x
Subordinated Structured Notes	4,386,757		Discounted Cash Flow	Discount Rate	8.35%	to	33.78%	(1)	24.04%	(1)
	$	19,785,715
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.

For the three months ended September 30, 2023 and 2022, there were no structuring fees recognized as part of interest income on the Consolidated Statements of Operations. For the three months ended September 30, 2023 and 2022, there were accelerated original issue discounts due to repayments of $0 and $3,020, respectively, included in interest income. For the three months ended September 30, 2023 and 2022, there was no early repayment income included in interest income.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

The Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. Management has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote.

The Company has a conditional obligation to reimburse the Adviser and PFIM for any amounts funded by the Adviser and PFIM under the Expense Limitation Agreement and Former Expense Limitation Agreement for any payments made by the Adviser and PFIM, respectively. The Expense Limitation Agreement and Former Expense Limitation Agreement payments are subject to repayment by the Company within the three years following the end of the quarter in which the payment was made

37

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

by the Adviser or PFIM; provided that any such repayments shall be subject to the then-applicable expense limitation, if any, and the limit that was in effect at the time when the Adviser or PFIM made the payment that is subject to repayment.

The Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings are threatened against the Company. 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. While the outcome of any legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material adverse effect upon its financial condition or results of operations.

As of September 30, 2023 and June 30, 2023, there was no unfunded commitment made by the Company.

NOTE 10 - REVOLVING CREDIT FACILITIES

On May 16, 2019, the Company established a $50 million senior secured revolving credit facility (the “Credit Facility”) with Royal Bank of Canada, a Canadian chartered bank, acting as administrative agent. In connection with the Credit Facility, the SPV, as borrower, and each of the other parties thereto entered into a Revolving Loan Agreement, dated as of May 16, 2019 (the “Loan Agreement”).

The Credit Facility had a maturity of May 21, 2029 and, initially, bore interest at a rate of three-month LIBOR plus 1.55%. On May 11, 2020, in connection with an extension of the ramp period for the Credit Facility from May 15, 2020 to November 15, 2020, the Company agreed to the increased interest rate of three-month LIBOR plus 2.20% on the Credit Facility for the period from May 16, 2020 through November 15, 2020. Effective November 10, 2020, the end date of the ramp period of the Credit Facility was extended again, from November 15, 2020 to May 14, 2021. As a result, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended through May 14, 2021. On May 11, 2021, the end date of the ramp period of the Credit Facility was further extended from May 14, 2021 to November 15, 2021. As a result, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended through November 15, 2021. On August 26, 2021, the end date of the ramp period of the Credit Facility was further extended from November 15, 2021 to August 25, 2022. In exchange, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended permanently. On July 6, 2022, the end date of the ramp period of the Credit Facility was further extended from August 25, 2022 to August 25, 2023. In connection with such extension, the interest rate on borrowings under the Credit Facility was amended from three-month LIBOR plus 2.20% to Secured Overnight Financing Rate (“SOFR”) plus 2.20%. On March 24, 2023, (i) the end date of the ramp period of the Credit Facility was further extended from August 25, 2023 to October 25, 2023 and (ii) the Loan Agreement was amended to require sales of collateral and/or receipt of capital contributions in a combined amount to have generated proceeds (on a trade date basis) (x) during the period from March 24, 2023 through April 30, 2023, in the Initial Amount (the "Initial Amount") of $4,000,000, and (y) during each month thereafter in an amount equal to $2,000,000 (the "Required Amount") with any amount in excess of the total Required Amount plus the Initial Amount contributing to the Required Amount for the next month. In connection with such extension and amendment, the interest rate on borrowings under the Credit Facility was reduced from SOFR plus 2.20% to SOFR plus 1.55%. The Credit Facility was secured by substantially all of the SPV’s properties and assets. Under the Loan Agreement, the SPV made certain customary representations and warranties and was required to comply with various covenants, including reporting requirements and other customary requirements for similar credit facilities. The Loan Agreement included usual and customary events of default for credit facilities of this nature. On November 7, 2022, Royal Bank of Canada granted a waiver of any non-compliance with certain waterfall provisions in the Loan Agreement that may have occurred prior to November 7, 2022. Further non-compliance with certain waterfall provisions was permitted through January 31, 2023.

On September 21, 2023, the Company entered into a senior secured revolving credit agreement (the "Senior Secured Revolving Credit Facility"), by and among the Company, as borrower, the lenders party thereto, and Sumitomo Mitsui Banking Corporation, as administrative agent. In conjunction with the closing of the Senior Secured Revolving Credit Facility, we terminated the Credit Facility. As of September 30, 2023, there was a $6,200,000 balance on the Senior Secured Revolving Credit Facility.

As of September 30, 2023 and June 30, 2023, we had $0 and $8,600,000, respectively, outstanding on our Credit Facility. As of September 30, 2023 and June 30, 2023, the investments used as collateral for the Credit Facility had an aggregate fair value of $0 and $16,278,891, respectively, which represents 0% and 74% of our total investments for each period, respectively. These securities are not available as collateral to the Company's general creditors. As of September 30, 2023 and June 30, 2023, cash balances of $0 and $61,833, respectively, were used as collateral for the Credit Facility.

In connection with the origination of the Credit Facility, we incurred $636,342 in fees, all of which were amortized over the term of the facility. As of September 30, 2023 and June 30, 2023, $0 and $230,022, respectively, remains to be amortized and is reflected as deferred financing costs on the Consolidated Statements of Assets and Liabilities.

38

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

During the three months ended September 30, 2023 and 2022, we recorded $230,022 and $269,258 respectively, of interest costs and amortization of financing costs on the Credit Facility as interest expense. During the three months ended September 30, 2023 and 2022, we realized a loss on the extinguishment of debt in the amount of $(66,844) and $0, respectively.

The Senior Secured Revolving Credit Facility provides for borrowings in U.S. dollars and certain agreed upon foreign currencies in an initial aggregate amount of up to $20,000,000 with an option for the Company to request, at one or more times, that existing and/or new lenders, at their election, provide up to $150,000,000 in aggregate. The Senior Secured Revolving Credit Facility provides for swingline loans in an aggregate principal amount at any time outstanding that will not exceed $5,000,000. Availability under the Senior Secured Revolving Credit Facility will terminate on the earlier of the Commitment Termination Date of September 19, 2025 or the date of termination of the revolving commitments thereunder, and the outstanding loans under the Senior Secured Revolving Credit Facility will mature on September 21, 2026. The Senior Secured Revolving Credit Facility also requires mandatory prepayment of interest and principal upon certain events, including after the date of termination of the revolving commitments thereunder from asset sales, extraordinary receipts, returns of capital, equity issuances, and incurrence of indebtedness, with certain exceptions and minimum amount thresholds.

Borrowings under the Senior Secured Revolving Credit Facility are subject to compliance with a borrowing base test. Amounts drawn under the Senior Secured Revolving Credit Facility in U.S. dollars will bear interest at either term SOFR plus a credit spread adjustment of 0.10% plus 2.5%, or the prime rate plus 1.5%. The Company may elect either the term SOFR or prime rate at the time of drawdown, and loans denominated in U.S. dollars may be converted from one rate to another at any time at the Company’s option, subject to certain conditions. Amounts drawn under the Senior Secured Revolving Credit Facility in other permitted currencies will bear interest at the relevant rate specified therein plus 2.5%.

During the period commencing on September 21, 2023 and ending on the earlier of the Commitment Termination Date or the date of termination of the revolving commitments under the Senior Secured Revolving Credit Facility, the Company will pay a commitment fee of 0.375% per annum (based on the immediately preceding quarter’s average usage) on the daily unused amount of the commitments then available thereunder.

In connection with the Senior Secured Revolving Credit Facility, the Company has made certain representations and warranties and must comply with various covenants and reporting requirements customary for facilities of this type. In addition, the Company must comply with the following financial covenants with respect to the Company and its consolidated subsidiaries: (a) the Company must maintain a minimum shareholders’ equity, measured as of each fiscal quarter end; and (b) the Company must maintain at all times an asset coverage ratio not less than 150%.

The Senior Secured Revolving Credit Facility contains events of default customary for facilities of this type. Upon the occurrence of an event of default, the Administrative Agent, at the request of the required lenders, may terminate the commitments and declare the outstanding advances and all other obligations under the Senior Secured Revolving Credit Facility immediately due and payable.

The Company’s obligations under the Senior Secured Revolving Credit Facility are guaranteed by Prospect Flexible Funding, LLC, a subsidiary of the Company, and will be guaranteed by certain domestic subsidiaries of the Company that are formed or acquired by the Company in the future. The Company’s obligations under the Senior Secured Revolving Credit Facility are secured by a first priority security interest in substantially all of the assets of the Company and certain of the Company’s subsidiaries.

During the three months ended September 30, 2023, the Company entered into the Senior Secured Revolving Credit Facility. As of September 30, 2023, we had $6,200,000 outstanding on our Senior Secured Revolving Credit Facility. As of September 30, 2023, the investments used as collateral for the Senior Secured Revolving Credit Facility had an aggregate fair value of $17,090,718, which represents 100% of our total investments for the period. As of September 30, 2023, cash balances of $1,448,540 were used as collateral for the Senior Secured Revolving Credit Facility. The fair value of the Senior Secured Revolving Credit Facility was $6,200,000 and is categorized as Level 2 under ASC 820 as of September 30, 2023. The fair value of the Senior Secured Revolving Credit Facility is equal to its carrying value as the Senior Secured Revolving Credit Facility is repriced to a market rate of interest frequently.

In connection with the origination of the Senior Secured Revolving Credit Facility, we incurred $884,762 in fees, all of which are being amortized over the term of the Senior Secured Revolving Credit Facility. As of September 30, 2023, $877,497 remains to be amortized and is reflected as deferred financing costs on the Consolidated Statements of Assets and Liabilities.

During the three months ended September 30, 2023, we recorded $60,191 of interest costs and amortization of financing costs on the Senior Secured Revolving Credit Facility as interest expense.

For the three months ended September 30, 2023 and 2022,  the average stated interest rate (i.e., rate in effect plus the spread) was 7.50% and 5.03%, respectively, under the Senior Secured Revolving Credit Facility and Credit Facility. For the three

39

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

months ended September 30, 2023 and 2022, average outstanding borrowings under the Senior Secured Revolving Credit Facility and Credit Facility was $6,409,677 and $20,103,261, respectively.

NOTE 11- FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights for each of the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30,
	2023			2022
	(unaudited)			(unaudited)
Per Share Data(a):
Net asset value at beginning of period	$	6.10		$	7.03
Net investment income (loss)	(0.09)			0.03
Net realized and unrealized (losses) on investments	(0.43)			(0.25)
Net realized (losses) on extinguishment of debt	(0.03)			—
Net decrease in net assets resulting from operations	(0.55)			(0.22)
Distributions(b)
Return of capital distributions	(0.11)			(0.04)
Distributions from net investment income	—			(0.10)
Total Distributions	(0.11)			(0.14)
Other (c)	—			—
Net asset value at end of period	$	5.44		$	6.67
Total return based on net asset value (d)	(9.26)		%	(3.16)		%
Supplemental Data:
Net assets at end of period	$	13,106,824		$	15,845,448
Average net assets	$	13,900,344		$	16,273,212
Average shares outstanding	2,404,057			2,375,375
Ratio to average net assets:
Total annual expenses(e)	24.48		%	20.56		%
Total annual expenses (after expense limitation agreement)(e)	22.09		%	17.79		%
Net investment income (loss)(e)	(6.4)		%	1.76		%
Portfolio Turnover	—		%	—		%
(a) Calculated based on weighted average shares outstanding.
(b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01.
(c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the period.
(d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the period and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded. Total return has not been annualized.
(e) Annualized for the three months ended September 30, 2023 and 2022.

40

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

The following is a schedule of financial highlights for each of the five years ended in the period ended June 30, 2023:

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2023			June 30, 2022			June 30, 2021			June 30, 2020			June 30, 2019(e)
Per Share Data(a):
Net asset value at beginning of year	7.03			$	8.36		$	8.28		$	9.88		$	9.89
Net investment income (loss)	0.2			0.31			(0.08)			0.24			0.91
Net realized and unrealized (losses) gains on investments	(0.65)			(1.05)			0.82			(1.22)			(1.11)
Net increase (decrease) in net assets resulting from operations	(0.45)			(0.74)			0.74			(0.98)			(0.20)
Distributions(b)
Return of capital distributions(f)	(0.13)			(0.16)			(0.46)			(0.57)			(0.54)
Distributions from net investment income(f)	(0.35)			(0.43)			(0.19)			(0.15)			(0.03)
Total Distributions	(0.48)			(0.59)			(0.65)			(0.72)			(0.57)
Offering costs	—			—			—			—			0.61
Other (c)	—			—			(0.01)			0.10			0.15
Net asset value at end of year	6.10			$	7.03		$	8.36		$	8.28		$	9.88
Total return based on net asset value (d)	(6.67)		%	(9.60)		%	9.03		%	(10.13)		%	7.52		%
Supplemental Data:
Net assets at end of year	$	14,693,862		$	16,700,975		$	19,947,807		$	19,558,400		$	23,410,715
Average net assets	$	15,303,274		$	18,912,658		$	20,055,524		$	21,234,189		$	12,536,923
Average shares outstanding	283,649			2,380,229			2,377,461			2,366,005			1,297,582
Ratio to average net assets:
Total annual expenses	21.06		%	15.70		%	20.07		%	16.41		%	23.48		%
Total annual expenses (after expense support agreement/expense limitation agreement)	18.3		%	12.47		%	18.44		%	13.07		%	9.11		%
Net investment income (loss)	3.2		%	3.95		%	(0.93)		%	2.67		%	2.15		%
Portfolio Turnover	—		%	35.34		%	17.83		%	24.56%			93.42		%
(a) Calculated based on weighted average shares outstanding.
(b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01.
(c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the year.
(d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the year and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded.
(e) Data presented for the year ended June 30, 2019 includes the shareholder activity of PWAY Class A and Class I shares, prior to the Merger and conversion into shares of the Company. The net asset value per share at beginning of year has been adjusted by the exchange ratio used in the Merger.
(f) The amounts reflected for the year ended June 30, 2022 have not been finalized. The amounts reflected for the year ended June 30, 2021 were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2021. Certain reclassifications have been made in the presentation of prior period amounts. See Note 2 and Note 6 within the accompanying notes to the consolidated financial statements for further discussion.

41

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

Information about our senior securities is shown in the following table since June 30, 2019. As of September 30, 2023 and June 30, 2023, our asset coverage ratio stood at 311% and 271%, respectively, based on the outstanding principal amount of our senior securities representing indebtedness.

Revolving Credit Facility	Total Amount Outstanding		Asset Coverage per Unit(1)		Involuntary Liquidating Preference per Unit(2)	Average Market Value per Unit(2)
September 30, 2023	$	6,200,000	$	3,114	—	—
June 30, 2023	$	8,600,000	$	2,709	—	—
March 31, 2023	$	15,477,000	$	1,937	—	—
December 31, 2022	$	17,800,000	$	1,830	—	—
September 30, 2022	$	20,000,000	$	1,792	—	—
June 30, 2022	$	20,500,000	$	1,815	—	—
March 31, 2022	$	21,000,000	$	1,895	—	—
December 31, 2021	$	21,000,000	$	1,924	—	—
September 30, 2021	$	21,000,000	$	1,938	—	—
June 30, 2021	$	21,000,000	$	1,950	—	—
March 31, 2021	$	21,000,000	$	1,971	—	—
December 31, 2020	$	21,000,000	$	1,976	—	—
September 30, 2020	$	21,000,000	$	1,947	—	—
June 30, 2020	$	21,000,000	$	1,931	—	—
March 31, 2020	$	21,000,000	$	1,914	—	—
December 31, 2019	$	21,000,000	$	2,018	—	—
September 30, 2019	$	15,500,000	$	2,461	—	—
June 30, 2019	$	5,500,000	$	5,256	—	—
(1) The asset coverage ratio is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit.
(2) This column is inapplicable.

NOTE 12 - NET INCREASE (DECREASE) IN NET ASSETS PER SHARE                                    

The following information sets forth the computation of net increase in net assets resulting from operations per share during the three months ended September 30, 2023 and 2022.

 

	Three Months Ended September 30,
	2023		2022
Net decrease in net assets resulting from operations	$	(1,322,420)	$	(517,315)
Weighted average common shares outstanding	2,404,057		2,375,375
Net decrease in net assets resulting from operations per share	$	(0.55)	$	(0.22)

NOTE 13 - SUBSEQUENT EVENTS

Management has evaluated all known subsequent events through the date of issuance of these consolidated financial statements and notes the following:        

Issuance of Common Stock

For the period beginning October 1, 2023 and ending November 14, 2023, the Company issued 12,765 shares pursuant to its distribution reinvestment plan in the amount of $77,740.    

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Repurchase Offer

On September 28, 2023, under our share repurchase program, we made a tender offer to purchase up to the number of shares of our issued and outstanding Class A common stock we could repurchase with the cash we retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan to those shareholders who elected to receive their distributions in the form of additional shares rather than in cash. The total cash retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan prior to this tender offer was approximately $113,374. The tender offer was for cash at a price equal to the net asset value per share as of October 31, 2023. The offer expired at 4:00 P.M., Eastern Time, on October 30, 2023, and a total of 283,611 shares were validly tendered and not withdrawn pursuant to the offer as of such date. In accordance with the terms of the offer, the Company purchased 21,113 shares validly tendered and not withdrawn at a price equal to $5.37 per share for an aggregate purchase price of approximately $113,374.                                                                                         

Senior Secured Revolving Credit Facility

On November 2, 2023, we paid down $500,000 on the Senior Secured Revolving Credit Facility. As of November 14, 2023, there was a $5,700,000 outstanding Senior Secured Revolving Credit Facility balance.

Distributions

On October 20, 2023, the Board of Directors declared a distribution for the month of October 2023, which reflects a targeted annualized distribution rate of 7.00% based on the current net asset value per share for the fourth fiscal quarter ended June 30, 2023. The distribution has a monthly record date as of the close of business of the last Friday in October 2023 and equals a weekly amount of $0.00819 per share of common stock. The distribution was paid to stockholders of record as of the monthly record date set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
October 27, 2023	November 3, 2023	$0.03276

On November 13, 2023, the Board of Directors declared distributions for the months of November 2023 and December 2023, which reflect a targeted annualized distribution rate of 7.00% based on the current net asset value per share for the fourth fiscal quarter ended June 30, 2023. The distributions have a monthly record date as of the close of business of the last Friday in November 2023 and December 2023 and equal a weekly amount of $0.00730 per share of common stock. The distributions will be paid to stockholders of record as of the monthly record dates set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
November 24, 2023	December 1, 2023	$0.02920
December 29, 2023	January 5, 2024	$0.03650

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations                     

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q (the "Quarterly Report"). In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results may differ significantly from any results expressed or implied by these forward-looking statements due to the factors discussed in Part II, “Item 1A. Risk Factors” and “Forward-Looking Statements” appearing elsewhere herein.

The terms “PFLOAT,” “the Company,” “we,” “us” and “our” mean Prospect Floating Rate and Alternative Income Fund, Inc. unless the context specifically requires otherwise.

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Overview

We are an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to generate current income and, as a secondary objective, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. Under normal market conditions, we will invest at least 80% of our net assets (plus any borrowings for investment purposes) in floating rate loans and other income producing investments. We will provide shareholders with 60 days' advanced notice prior to changing this 80% investment policy. We intend to meet our investment objective by primarily lending to and investing in the debt of privately-owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $2.5 billion. We have elected and intend to continue to qualify annually to be taxed for U.S. federal income tax purposes as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code").                

On March 31, 2019, Pathway Capital Opportunity Fund, Inc. (“PWAY”) merged with and into us (the “Merger”). As the combined surviving company, we were renamed as TP Flexible Income Fund, Inc. (we were formerly known as Triton Pacific Investment Corporation, Inc. (“TPIC”)). In connection with our adoption of a policy to invest, under normal market conditions, at least 80% of our net assets (plus any borrowings for investment purposes) in floating rate loans and other income producing investments, effective September 16, 2022, we changed our name to Prospect Floating Rate and Alternative Income Fund, Inc. In connection with the Merger, Prospect Flexible Income Management, LLC ("PFIM"), an affiliate of PWAY, became our investment adviser, and Prospect Administration LLC (the "Administrator" or "Prospect Administration"), an affiliate of PFIM and our new investment adviser, Prospect Capital Management L.P. (the "Adviser"), became our administrator. Although PWAY merged with and into us, PWAY is considered the accounting survivor of the Merger and its historical financial statements are included and discussed herein and in other applicable reports that we file with the SEC.            

On April 20, 2021, we entered into an investment advisory agreement (the "Investment Advisory Agreement") with the Adviser, which was approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act). Our stockholders approved the Investment Advisory Agreement at a Special Meeting of Stockholders held on March 31, 2021. The Investment Advisory Agreement replaces our prior investment advisory agreement, dated March 31, 2019 (the “Former Investment Advisory Agreement”), with PFIM, our former investment adviser, which terminated effective April 20, 2021. The Investment Advisory Agreement is identical in all material respects to the Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as our investment adviser instead of PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM.

On November 5, 2021, we amended and restated the Investment Advisory Agreement (the "Amended and Restated Advisory Agreement") to reduce the base management fee from an annual rate of 1.75% to 1.20% and eliminate the incentive fee payable to the Adviser thereunder, effective as of January 1, 2022 and until the one year anniversary of the listing of the Company’s common stock on a national securities exchange (the “Listing Anniversary”). Following the Listing Anniversary (1) the base management fee will be calculated at an annual rate of 1.75% commencing with the first base management fee calculation that occurs thereafter, and (2) the Adviser will be entitled to receive an incentive fee, if any, under the Amended and Restated Advisory Agreement commencing with the first calendar quarter thereafter. The Amended and Restated Advisory Agreement was most recently approved by our Board of Directors, including our directors who are not “interested persons” (as defined in the 1940 Act), on June 15, 2023.

For additional information regarding the Amended and Restated Advisory Agreement, please refer to “Investment Advisory Fees” below.

We previously publicly offered for sale a maximum amount of $300,000,000 in shares of common stock on a "best efforts" basis with Triton Pacific Securities, LLC (the "Dealer Manager") serving as the dealer manager for the offering pursuant to a dealer manager agreement, as amended. The Dealer Manager was not required to sell any specific number or dollar amount of shares but would use its best efforts to sell the shares offered. Effective February 19, 2021, the offering was terminated and, as a result, the dealer manager agreement terminated in accordance with its terms and the Dealer Manager ceased serving as our dealer manager effective as of such date. Effective September 19, 2022, we engaged Preferred Capital Securities, LLC (“PCS”) as our dealer manager for our offering to “accredited investors” (within the meaning of Rule 501(a) under the Securities Act of 1933, as amended (the “Securities Act”)) of shares of our common stock (the “Private Offering”) on the terms and conditions set forth in our confidential private placement memorandum. We are relying on the exemption provided by Rule 506(b) of Regulation D and Section 4(a)(2) of the Securities Act in connection with our Private Offering. On September 13, 2023, we filed with the SEC an initial registration statement on Form N-2 for the offer and sale of up to $300,000,000 shares of our Class S, Class D and Class I common stock (the "Multi-Class Offering"). In connection with the Multi-Class Offering, we intend to

44

authorize the issuance of separate classes of common stock and designate such classes Class S, Class D and Class I common stock, respectively (the "Common Stock"). The registration statement has not been declared effective by the SEC and no Common Stock may be sold in connection with the Multi-Class Offering until such registration statement is declared effective by the SEC.

As of November 14, 2023, we have sold a total of 2,420,670 shares of common stock, including 470,626 shares issued pursuant to our distribution reinvestment plan, for gross proceeds of approximately $32,025,041, including the reduction due to ($4,588,193) in shares repurchased pursuant to the Company’s share repurchase program and 14,815 shares of common stock sold to Triton Pacific Adviser, LLC, our former investment adviser (the “TPIC Adviser”) in exchange for gross proceeds of $200,003. As a result of the Merger, the Company issued 775,193 shares.

Our Adviser

Our Adviser is a Delaware limited liability company and is registered as an investment adviser under the Advisers Act. Our Adviser is led by John F. Barry III and M. Grier Eliasek, two senior executives with significant investment advisory and business experience. Mr. Barry currently controls our Adviser.

First Quarter Highlights

Investment Transactions

We seek to be a long-term investor with our portfolio companies. During the three months ended September 30, 2023, there were no purchased investment securities (excluding short-term securities). During the three months ended September 30, 2023, there was a noncash restructured investment in the amount of $997,560. During the three months ended September 30, 2023, sales and redemptions of investment securities (excluding short-term securities) were $3,641,054, resulting in a total net portfolio decline of $(3,641,054) for the three months ended September 30, 2023.

Debt Issuances and Redemptions

During the three months ended September 30, 2023, we fully repaid our Credit Facility (as defined herein). On September 21, 2023, the Company entered into a senior secured revolving credit agreement (the "Senior Secured Revolving Credit Facility"), by and among the Company, as borrower, the lenders party thereto, and Sumitomo Mitsui Banking Corporation, as administrative agent. In conjunction with the closing of the Senior Secured Revolving Credit Facility, we terminated the Credit Facility. As of September 30, 2023, there was $6,200,000 balance on the Senior Secured Revolving Credit Facility. See Note 10 within the accompanying notes to the consolidated financial statements for further discussion.

Equity Issuances

As part of the distribution reinvestment plan, we issued 7,130, 5,633 and 5,652 shares of our common stock on July 7, 2023, August 4, 2023 and September 1, 2023, respectively.

On September 28, 2023, under our share repurchase program, we made a tender offer to purchase up to the number of shares of our issued and outstanding Class A common stock we could repurchase with the cash we retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan to those shareholders who elected to receive their distributions in the form of additional shares rather than in cash. The total cash retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan prior to this tender offer was approximately $113,374. The tender offer was for cash at a price equal to the net asset value per share as of October 31, 2023. The offer expired at 4:00 P.M., Eastern Time, on October 30, 2023, and a total of 283,611 shares were validly tendered and not withdrawn pursuant to the offer as of such date. In accordance with the terms of the offer, the Company purchased 21,113 shares validly tendered and not withdrawn at a price equal to $5.37 per share for an aggregate purchase price of approximately $113,374.

Investments

Our investment objective is to generate current income and, as a secondary objective, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. Under normal market conditions, we will invest at least 80% of our net assets (plus any borrowings for investment purposes) in floating rate loans and other income producing investments. We intend to meet our investment objective by primarily lending to and investing in the debt of privately-owned U.S. middle market companies. We may on occasion invest in smaller or larger companies if an attractive opportunity presents itself, especially when there are dislocations in the capital markets. We expect to focus primarily on directly originating senior secured first lien loans and senior secured second lien loans and making investments in syndicated senior secured first lien loans, syndicated senior secured second lien loans, and to a lesser extent, subordinated debt, of middle market companies in a broad range of industries. Syndicated secured loans refer to commercial loans provided by a group of lenders that are structured, arranged, and administered by one or several commercial or investment banks, known as arrangers. These loans are then sold (or syndicated) to other banks or institutional investors. Syndicated secured loans may have a first priority lien on a borrower’s

45

assets (i.e., senior secured first lien loans), a second priority lien on a borrower’s assets (i.e., senior secured second lien loans), or a lower lien or unsecured position on the borrower’s assets (i.e., subordinated debt). We expect our target credit investments will typically have initial maturities between three and ten years and generally range in size between $1 million and $100 million, although the investment size will vary with the size of our capital base. We expect that the majority of our debt investments will bear interest at floating interest rates, but our portfolio may also include fixed-rate investments. We also expect to make our investments directly through the primary issuance by the borrower or in the secondary market.

We will generally source our investments primarily through our Adviser. We believe the investment management team of our Adviser has a significant amount of experience in the credit business, including originating, underwriting, principal investing and loan structuring. Our Adviser has access to 126 professionals, 49 of whom perform investment advisory functions.

We expect to dynamically allocate our assets in varying types of investments based on our analysis of the credit markets, which may result in our portfolio becoming more concentrated in particular types of credit instruments (such as senior secured loans) and less invested in other types of credit instruments. The loans in which we intend to invest are often rated by a nationally recognized ratings organization, and generally carry a rating below investment grade (rated lower than “Baa3” by Moody’s Investors Service or lower than “BBB-” by Standard & Poor’s Corporation - also known as “high yield” or “junk bonds”). However, we may also invest in non-rated debt securities.

To seek to enhance our returns, we may employ leverage as market conditions permit and at the discretion of our Adviser, but in no event will leverage employed exceed the maximum amount permitted by the 1940 Act.

As part of our investment objective to generate current income, we expect that at least 70% of our investments will consist primarily of directly originated or syndicated senior secured first lien loans, directly originated or syndicated senior secured second lien loans, and to a lesser extent, subordinated debt. We expect that up to 30% of our investments will consist of other securities, including private equity (both common and preferred), dividend-paying equity, royalties, and the equity and junior debt tranches of collateralized loan obligations ("CLOs"), which we also refer to as subordinated structured notes ("SSNs"). The senior secured loans underlying our CLO investments are expected typically to be BB or B rated (non-investment grade, which are often referred to as “high yield” or “junk”) and in limited circumstances, unrated, senior secured loans.

As a BDC, we are subject to certain regulatory restrictions in making our investments. For example, we have in the past and expect in the future to co-invest on a concurrent basis with certain affiliates, consistent with applicable regulations and our allocation procedures. On January 13, 2020, (amended on August 2, 2022), the parent company of the Adviser received an exemptive order from the SEC granting the ability to negotiate terms, other than price and quantity, of co-investment transactions with other funds managed by our Adviser or certain affiliates, including us, Prospect Capital Corporation and Priority Income Fund, Inc., subject to certain conditions included therein. Under the terms of the Order permitting us to co-invest with other funds managed by our Adviser or its affiliates, a majority of our independent directors who have no financial interest in the transaction must make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned and (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies. The Order also imposes reporting and record keeping requirements and limitations on transactional fees. We may only co-invest with certain entities affiliated with our Adviser in negotiated transactions originated by our Adviser or its affiliates in accordance with such Order and existing regulatory guidance. See Note 4 of the Consolidated Financial Statements. These co-investment transactions may give rise to conflicts of interest or perceived conflicts of interest among us and the other participating accounts. To mitigate these conflicts, our Adviser and its affiliates will seek to allocate portfolio transactions for all of the participating investment accounts, including us, on a fair and equitable basis, taking into account such factors as the relative amounts of capital available for new investments, the applicable investment programs and portfolio positions, the clients for which participation is appropriate and any other factors deemed appropriate. We intend to make all of our investments in compliance with the 1940 Act and in a manner that will not jeopardize our status as a BDC or RIC.

As a BDC, we are permitted under the 1940 Act to borrow funds to finance portfolio investments. To enhance our opportunity for gain, we intend to employ leverage as market conditions permit. At the 2019 Annual Meeting, TPIC’s stockholders approved a proposal allowing us to modify our asset coverage ratio requirement from 200% to 150%. As a result, we were allowed to increase our leverage capacity effective as of March 16, 2019. The use of leverage, although it may increase returns, may also increase the risk of loss to our investors, particularly if the level of our leverage is high and the value of our investments declines.

Revenues

We generate revenue in the form of dividends, interest and capital gains on the debt securities, equity interests and CLOs that we hold. In addition, we may generate revenue from our portfolio companies in the form of commitment, origination,

46

structuring or diligence fees, monitoring fees, fees for providing managerial assistance and possibly consulting fees and performance-based fees. Any such fees will be recognized as earned.

Expenses

Our primary operating expenses will be the payment of advisory fees and other expenses under the Investment Advisory Agreement with the Adviser. The advisory fees will compensate our Adviser for its work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments.

We will bear all other expenses of our operations and transactions, including (without limitation) fees and expenses relating to:

•    corporate and organizational expenses relating to offerings of our common stock, subject to limitations included in the investment advisory and management services agreement;

•    the cost of calculating our net asset value, including the cost of any third-party valuation services;

•    the cost of effecting sales and repurchase of shares of our common stock and other securities;

•    investment advisory fees;

•    fees payable to third parties relating to, or associated with, making investments and valuing investments, including fees and expenses associated with performing due diligence reviews of prospective investments;

•    transfer agent and custodial fees;

•    fees and expenses associated with marketing efforts;

•    federal and state registration fees;

•    federal, state and local taxes;

•    independent directors’ fees and expenses;

•    costs of proxy statements, stockholders’ reports and notices;

•    fidelity bond, directors and officers/errors and omissions liability insurance and other insurance premiums;

•    direct costs such as printing, mailing, long distance telephone, and staff;

•    fees and expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act;

•    costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws;

•    brokerage commissions for our investments;

•    legal, accounting and other costs associated with structuring, negotiating, documenting and completing our investment transactions;

•    all other expenses incurred by our Adviser, in performing its obligations, subject to the limitations included in the Investment Advisory Agreement; and

•    all other expenses incurred by either our Administrator or us in connection with administering our business, including payments to our Administrator under the Administration Agreement (as defined herein) that will be based upon our allocable portion of its overhead and other expenses incurred in performing its obligations under the Administration Agreement, including rent and our allocable portion of the costs of compensation and related expenses of our chief executive officer, chief compliance officer and chief financial officer and their respective staffs.

Reimbursement of our Administrator for Administrative Services

We will reimburse our Administrator for the administrative expenses necessary for its performance of services to us. Such costs will be reasonably allocated to us on the basis of assets, revenues, time records or other reasonable methods. However, such reimbursement is made in an amount equal to the lower of the Administrator’s actual costs or the amount that we would be required to pay for comparable administrative services in the same geographic location. We will not reimburse our Administrator for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other

47

administrative items allocated to a controlling person of our Administrator.

Portfolio and Investment Activity

We seek to be a long-term investor with our portfolio companies. During the three months ended September 30, 2023, there were no purchased investment securities (excluding short-term securities). During the three months ended September 30, 2023, there was a noncash restructured investment in the amount of $997,560. During the three months ended September 30, 2023, sales and redemptions of investment securities (excluding short-term securities) were $3,641,054, resulting in a total net portfolio decline of $(3,641,054) for the three months ended September 30, 2023. As of September 30, 2023, our investment portfolio, with a total fair value of $17,090,718, consisted of interests in 39 investments (71% in senior secured loans, 2% in senior secured notes, 3% in equity/other and 24% in CLO - subordinated notes).

Our financial condition, including the fair value and performance of certain of our portfolio investments, may be materially impacted after September 30, 2023 by circumstances and events that are not yet known. To the extent our portfolio investments are adversely impacted by the renewed hostilities in the Middle East, the ongoing conflict between Russia and Ukraine, rising interest rates, inflationary pressures, or by other factors, we may experience a material adverse impact on our future net investment income, the underlying value of our investments, our financial condition and the financial condition of our portfolio investments. For additional information concerning risks and their potential impact on our business and our operating results, see “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023, filed on September 27, 2023.    

During the three months ended September 30, 2022, we did not purchase investment securities (excluding short-term securities). During the same three month period ended September 30, 2022, sales and redemptions of investment securities (excluding short-term securities) were $1,358,587, resulting in a total net portfolio decline of $(1,358,587). As of September 30, 2022, our investment portfolio, with a total fair value of $33,817,029, consisted of interests in 46 investments (82% in senior secured loans, 2% in senior secured notes, 2% in equity/other and 14% in CLO - subordinated notes).                                                             

Portfolio Holdings

As of September 30, 2023, our investment portfolio, with a total fair value of $17,090,718, consisted of interests in 15 portfolio companies and 24 structured subordinated notes. The following table presents certain selected information regarding our portfolio composition and weighted average yields as of September 30, 2023 and June 30, 2023:

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	As of September 30, 2023							As of June 30, 2023
	Amortized Cost			Fair Value		As Percent of Total Fair Value		Amortized Cost			Fair Value		As Percent of Total Fair Value
Senior Secured Loans-First Lien	$	11,590,740		$	10,768,957	63	%	$	16,445,667		$	15,362,386	70	%
Senior Secured Loans-Second Lien	1,777,299			1,378,000		8	%	1,758,303			1,416,049		7	%
Equity/Other	1,667,943			620,319		3	%	670,383			478,096		2	%
Senior Secured Notes	752,749			290,152		2	%	752,867			271,899		1	%
Structured subordinated notes	5,596,444			4,033,290		24	%	5,764,411			4,368,757		20	%
Total	$	21,385,175		$	17,090,718	100	%	$	25,391,631		$	21,897,187	100	%
Number of portfolio companies	15							19
Number of Structured subordinated notes	24							24
% Variable Rate (based on fair value)(1)	98%							99%
% Fixed Rate (based on fair value)(1)	2		%					1		%
% Weighted Average Yield Variable Rate (based on principal outstanding)(1)(2)	11		%					11		%
% Weighted Average Yield Fixed Rate (based on principal outstanding)(1)	7		%					7		%
% Weighted Average Yield on Structured Subordinated Notes (based on cost)	8		%					10		%
% Weighted Average Yield on Fixed Rate Debt, Variable Rate Debt and Structured Subordinated Notes (based on cost)(3)	10		%					11		%
% Weighted Average Yield (based on cost) for the entire portfolio	9		%					10		%
(1) The interest rate by type information is calculated using the Company’s debt portfolio and excludes equity investments.
(2) The interest rate by type information is calculated using the Company’s debt portfolio and excludes structured subordinated notes.
(3) The interest rate by type information is calculated excluding the Company’s equity investments.

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The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of September 30, 2023 and June 30, 2023:

	September 30, 2023
Industry	Investments at Amortized Cost		Percentage of Portfolio		Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	5,596,444	25	%	$	4,033,290	24	%
Healthcare & Pharmaceuticals	2,463,150		12	%	2,528,662		15	%
Services: Business	2,638,746		12	%	2,381,446		14	%
Telecommunications	2,284,841		10	%	2,287,216		13	%
Media: Diversified and Production	1,777,299		8	%	1,378,000		8	%
Services: Consumer	1,743,136		8	%	1,360,476		8	%
Media: Broadcasting & Subscription	972,914		5	%	975,050		6	%
Beverage, Food & Tobacco	967,059		5	%	938,763		5	%
Wholesale	993,251		5	%	865,844		5	%
Financial	752,749		4	%	290,152		2	%
Consumer goods: Non-Durable	997,560		5	%	42,300		—	%
Retail	198,026		1	%	9,519		—	%
Total	$	21,385,175	100	%	$	17,090,718	100	%

	June 30, 2023
Industry	Investments at Amortized Cost		Percentage of Portfolio		Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	5,764,411	23	%	$	4,386,757	20	%
Healthcare & Pharmaceuticals	2,942,734		12	%	2,880,134		13	%
Services: Consumer	3,004,329		12	%	2,741,742		13	%
Services: Business	2,647,846		10	%	2,507,919		11	%
Telecommunications	2,283,487		9	%	2,324,213		11	%
Wholesale	1,917,882		7	%	1,662,469		8	%
Media: Diversified and Production	1,758,303		7	%	1,416,049		7	%
Media: Broadcasting & Subscription	977,525		4	%	971,690		4	%
Beverage, Food & Tobacco	972,281		4	%	920,151		4	%
Consumer goods: Durable	703,653		3	%	678,492		3	%
Consumer goods: Non-Durable	997,560		4	%	669,880		3	%
Automotive	470,727		2	%	470,696		2	%
Financial	752,867		3	%	271,899		1	%
Retail	198,026		—	%	13,096		—	%
Total	$	25,391,631	100	%	$	21,915,187	100	%

As of September 30, 2023 and June 30, 2023, we did not “control” any of our portfolio companies, as defined in the 1940 Act.

The following table shows the composition of our investment portfolio by level of control as of September 30, 2023 and June 30, 2023:

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	September 30, 2023								June 30, 2023
Level of Control	Cost		% of Portfolio		Fair Value		% of Portfolio		Cost		% of Portfolio		Fair Value		% of Portfolio
Affiliate	$	—	—	%	$	—	—	%	$	—	—	%	$	—	—	%
Non-Control/Non-Affiliate	21,385,175		100	%	17,090,718		100	%	25,391,631		100	%	21,897,187		100	%
Total Investments	$	21,385,175	100	%	$	17,090,718	100	%	$	25,391,631	100	%	$	21,897,187	100	%

Net Asset Value

During the three months ended September 30, 2023, our net asset value decreased by $(1,587,038), or $(0.66) per share. The decrease was primarily attributable to an increase in net realized and net change in unrealized losses on investments of $(1,033,208), or $(0.43) per weighted average share. For the three months ended September 30, 2023, our net asset value further decreased by $0.20 per share related to distributions and our net investment income loss of $(222,368). For the three months ended September 30, 2023, our net asset value further decreased by $(66,844) or $(0.03) per share from the realized loss on the extinguishment of debt. The following table shows the calculation of net asset value per share as of September 30, 2023 and June 30, 2023.

	September 30, 2023		June 30, 2023
Net assets	$	13,106,824	$	14,693,862
Shares of common stock issued and outstanding	2,407,904		2,409,452
Net asset value per share	$	5.44	$	6.10

Results of Operations

Investment Income

For the three months ended September 30, 2023 and 2022, we generated $545,116 and $795,513, respectively, in investment income in the form of interest and fees earned on our debt portfolio. Such revenues were primarily cash income and non-cash portions related to the accretion of discounts. For the three months ended September 30, 2023, investment income was lower as we held less investments. This was partially offset by rising interest rates due to increases in LIBOR and SOFR rates. Although there were benefits to interest income due to the rising LIBOR and SOFR rates, our income from our structured subordinated notes decreased due to 1 additional investment with an effective yield estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost as well as many investments exiting the reinvestment period.

For the three months ended September 30, 2023 and 2022, PIK interest included in interest income totaled $21,994 and $162, respectively. For the three months ended September 30, 2023, PIK interest included in interest income was higher due to an amendment on an investment which now has partial PIK interest.

Operating Expenses

Total operating expenses before expense limitation support totaled $850,843 and $836,321 for the three months ended September 30, 2023 and 2022, respectively. These operating expenses consisted primarily of interest and credit facility expense, offering costs, base management fees, administrator costs, legal expense, valuation services and audit and tax expense.

The base management fees for the three months ended September 30, 2023 and 2022, respectively, were $83,359 and $112,434. Base management fees were lower for the three months ended September 30, 2023 due to the reduction in average total assets.

The interest and credit facility expense for the three months ended September 30, 2023 and 2022, respectively, were $290,213 and $269,258. The interest and credit facility expenses were higher for the three months ended September 30, 2023, due to an increase in the three-month interest rates which was partially offset by a reduction in the credit facility balance. For the three months ended September 30, 2023 and 2022,  the average stated interest rate (i.e., rate in effect plus the spread) was 7.50% and 5.03%, respectively. For the three months ended September 30, 2023 and 2022, average outstanding borrowings under the Credit Facility was $6,409,677 and $20,103,261, respectively. The interest expense is monitored during our monthly reporting.

The offering costs for the three months ended September 30, 2023 and 2022, respectively, were $0 and $8,513. The offering costs were higher for the three months ended September 30, 2022 because we incurred initial costs associated with launching a private placement offering. The offering costs were lower for the three months ended September 30, 2023 because the initial

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costs associated with our initial registration statement on Form N-2 filed with the SEC for our Multi-Class Offering are being capitalized and will be expensed once the Multi-Class Offering has commenced.

The legal expenses for the three months ended September 30, 2023 and 2022, respectively, were $27,405 and $68,479. The legal expenses for the three months ended September 30, 2022 were higher due to additional costs associated with launching a private placement offering.

The valuation services for the three months ended September 30, 2023 and 2022, respectively, were $4,000 and $5,000. The valuation costs for the three months ended September 30, 2023 were lower due to a reduction in investments held.

The general and administrative expense for the three months ended September 30, 2023 and 2022, respectively, were $97,518 and $57,602. The general and administrative expense for the three months ended September 30, 2023 were higher due to costs associated with proxy and other SEC filings.

Pursuant to the expense limitation support payment (discussed below), the sponsor reimbursed the Company $(83,359) and $(112,434) for the three months ended September 30, 2023 and 2022, respectively.

Net Investment Income (Loss)

Our net investment (loss) income totaled $(222,368) and $71,626 for the three months ended September 30, 2023 and 2022, respectively. The net investment income for the three months ended September 30, 2023 was lower due to an increase in credit facility expenses and general and administrative expense as well as a decrease in interest income.

Net Realized Gains/Losses from Investments

We measure realized gains or losses by the difference between the net proceeds from the disposition and the amortized cost basis of investment, without regard to unrealized gains or losses previously recognized.

For the three months ended September 30, 2023 and 2022, respectively, we received proceeds from sales and repayments on unaffiliated investments of $3,641,054 and $1,358,587, from which we realized gains (losses) of $(215,183) and $0, respectively. During the the three months ended September 30, 2023, we recognized a realized loss from debt of $66,844 related to the termination of the Credit Facility.

Net Unrealized Gains/Losses on Investments

Net change in unrealized gains (losses) on investments reflects the net change in the fair value of our investment portfolio. For the three months ended September 30, 2023 and 2022, net change in unrealized gains (losses) totaled $(818,013) and $(588,941), respectively. For the three months ended September 30, 2023, the fair value of our investments was negatively impacted by macro-economic challenges such as reduced demand, economic volatility, and inflationary pressures.

Financial Condition, Liquidity and Capital Resources

We generate cash primarily from cash flows from fees (such as management fees), interest and dividends earned from our investments and principal repayments and proceeds from sales of our investments. Our primary use of funds is investments in companies, payments of our expenses and distributions to holders of our common stock.

Because many of our operating costs are not proportional to our size, including accounting/auditing, legal, insurance and administrative costs (which includes the reimbursement of the compensation of the chief financial officer, chief compliance officer, treasurer, secretary and other administrative personnel of our Administrator), we must raise sufficient capital in order to build a portfolio that generates sufficient revenue to cover our expenses. As of September 30, 2023, we have not raised sufficient capital to build a large enough portfolio to generate sufficient revenue to cover our operating expenses. We have entered into an Expense Limitation Agreement with our Adviser, which, as a result of our Adviser waiving fees that we would otherwise be required to pay to it, has allowed us to make distributions to shareholders and pay some expenses. However, after June 30, 2024, our Adviser is no longer contractually obligated to waive fees. Our Adviser, in its capacity as an affiliate of our former adviser, has in the past agreed to voluntarily waive fees, but there is no guarantee that it will do so and, if it does not, we will be required to sell our investments to cover our expenses

We previously publicly offered for sale a maximum amount of $300,000,000 in shares of common stock on a "best efforts" basis. The Dealer Manager was not required to sell any specific number or dollar amount of shares but would use its best efforts to sell the shares offered. The minimum investment in shares of our common stock in the offering was $5,000. Effective February 19, 2021, the offering was terminated and, as a result, the dealer manager agreement terminated in accordance with its terms and the Dealer Manager ceased serving as our dealer manager effective as of such date. Effective September 19, 2022, we engaged PCS as our dealer manager for our Private Offering. We are relying on the exemption provided by Rule 506(b) of

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Regulation D and Section 4(a)(2) of the Securities Act in connection with our Private Offering. As of September 30, 2023, we have not sold any shares in our Private Offering.

To the extent we offer shares of our common stock and our net asset value increases, we will sell at a price necessary to ensure that shares are not sold at a price per share, after deduction of selling commissions and dealer manager fees, that is below our net asset value per share. In connection with each closing, our Board of Directors or a committee thereof is required, within 48 hours of the time that each closing and sale is made, to make the determination that we are not selling shares of our common stock at a price per share which, after deducting upfront selling commissions, if any, is below the then-current net asset value per share of the applicable class. Promptly following any such adjustment to the offering price per share and to the extent we are conducting a public offering, we will file a prospectus supplement with the SEC disclosing the adjusted offering price, and we appropriately publish the updated information.

We may borrow funds to make investments at any time, including before we have fully invested the proceeds of our offering, to the extent we determine that additional capital would allow us to take advantage of investment opportunities, or if our Board of Directors determines that leveraging our portfolio would be in our best interests and the best interests of our stockholders. We have not yet decided, however, whether, and to what extent, we will finance portfolio investments using debt. We do not currently anticipate issuing any preferred stock.

The North American Securities Administrators Association, in its Omnibus Guidelines Statement of Policy adopted on March 29, 1992 and as amended on May 7, 2007 and from time to time, requires that our sponsor and its affiliates have an aggregate financial net worth, exclusive of home, automobile and home furnishings, of 5% of the first $20,000,000 of both the gross amount of securities currently being offered and the gross amount of any originally issued direct participation program sold by our sponsor and its affiliates within the last 12 months, plus 1% of all amounts in excess of the first $20,000,000. Based on these requirements, our sponsor and its affiliates have an aggregate net worth in excess of those amounts required by the Omnibus Guidelines Statement of Policy.

For the three months ended September 30, 2023 and 2022, our operating activities provided (used) $4,198,725 and $1,633,138 of cash, respectively. The change is primarily driven by an increase in a payable for accrued legal and administrator fees, an open trade and an increase in repayments and sales of investments. For the the three months ended September 30, 2023 and 2022, operating activities included the repayments and sales of portfolio investments of $3,641,054 and $1,358,587, respectively. Financing activities (used) provided $(3,548,964) and $(826,946) of cash during the three months ended September 30, 2023 and 2022, respectively, which included dividend payments of $(142,633) and $(174,441), respectively. For the three months ended September 30, 2023 and 2022, we repaid $8,600,000 and $0, respectively, under the credit facility.

Credit Facility

On May 16, 2019, the Company established a $50 million senior secured revolving credit facility (the “Credit Facility”) with Royal Bank of Canada, a Canadian chartered bank, acting as administrative agent. In connection with the Credit Facility, the SPV, as borrower, and each of the other parties thereto entered into a Revolving Loan Agreement, dated as of May 16, 2019 (the “Loan Agreement”).

The Credit Facility had a maturity of May 21, 2029 and, initially, bore interest at a rate of three-month LIBOR plus 1.55%. On May 11, 2020, in connection with an extension of the ramp period for the Credit Facility from May 15, 2020 to November 15, 2020, the Company agreed to the increased interest rate of three-month LIBOR plus 2.20% on the Credit Facility for the period from May 16, 2020 through November 15, 2020. Effective November 10, 2020, the end date of the ramp period of the Credit Facility was extended again, from November 15, 2020 to May 14, 2021. As a result, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended through May 14, 2021. On May 11, 2021, the end date of the ramp period of the Credit Facility was further extended from May 14, 2021 to November 15, 2021. As a result, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended through November 15, 2021. On August 26, 2021, the end date of the ramp period of the Credit Facility was further extended from November 15, 2021 to August 25, 2022. In exchange, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended permanently. On July 6, 2022, the end date of the ramp period of the Credit Facility was further extended from August 25, 2022 to August 25, 2023. In connection with such extension, the interest rate on borrowings under the Credit Facility was amended from three-month LIBOR plus 2.20% to Secured Overnight Financing Rate (“SOFR”) plus 2.20%. On March 24, 2023, (i) the end date of the ramp period of the Credit Facility was further extended from August 25, 2023 to October 25, 2023 and (ii) the Loan Agreement was amended to require sales of collateral and/or receipt of capital contributions in a combined amount to have generated proceeds (on a trade date basis) (x) during the period from March 24, 2023 through April 30, 2023, in the Initial Amount (the "Initial Amount") of $4,000,000, and (y) during each month thereafter in an amount equal to $2,000,000 (the "Required Amount") with any amount in excess of the total Required Amount plus the Initial Amount contributing to the Required Amount for the next month. In connection with such extension and amendment, the interest rate on

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borrowings under the Credit Facility was reduced from SOFR plus 2.20% to SOFR plus 1.55%. The Credit Facility was secured by substantially all of the SPV’s properties and assets. Under the Loan Agreement, the SPV made certain customary representations and warranties and was required to comply with various covenants, including reporting requirements and other customary requirements for similar credit facilities. The Loan Agreement included usual and customary events of default for credit facilities of this nature. On November 7, 2022, Royal Bank of Canada granted a waiver of any non-compliance with certain waterfall provisions in the Loan Agreement that may have occurred prior to November 7, 2022. Further non-compliance with certain waterfall provisions was permitted through January 31, 2023.

On September 21, 2023, the Company entered into a senior secured revolving credit agreement (the "Senior Secured Revolving Credit Facility"), by and among the Company, as borrower, the lenders party thereto, and Sumitomo Mitsui Banking Corporation, as administrative agent. In conjunction with the closing of the Senior Secured Revolving Credit Facility, we terminated the Credit Facility. As of September 30, 2023, there was a $6,200,000 balance on the Senior Secured Revolving Credit Facility.

As of September 30, 2023 and June 30, 2023, we had $0 and $8,600,000, respectively, outstanding on our Credit Facility. As of September 30, 2023 and June 30, 2023, the investments used as collateral for the Credit Facility had an aggregate fair value of $0 and $16,278,891, respectively, which represents 0% and 74% of our total investments for each period, respectively. These securities are not available as collateral to the Company's general creditors. As of September 30, 2023 and June 30, 2023, cash balances of $0 and $61,833, respectively, were used as collateral for the Credit Facility.

In connection with the origination of the Credit Facility, we incurred $636,342 in fees, all of which were amortized over the term of the facility. As of September 30, 2023 and June 30, 2023, $0 and $230,022, respectively, remains to be amortized and is reflected as deferred financing costs on the Consolidated Statements of Assets and Liabilities.

During the three months ended September 30, 2023 and 2022, we recorded $230,022 and $269,258 respectively, of interest costs and amortization of financing costs on the Credit Facility as interest expense.

The Senior Secured Revolving Credit Facility provides for borrowings in U.S. dollars and certain agreed upon foreign currencies in an initial aggregate amount of up to $20,000,000 with an option for the Company to request, at one or more times, that existing and/or new lenders, at their election, provide up to $150,000,000 in aggregate. The Senior Secured Revolving Credit Facility provides for swingline loans in an aggregate principal amount at any time outstanding that will not exceed $5,000,000. Availability under the Senior Secured Revolving Credit Facility will terminate on the earlier of the Commitment Termination Date of September 19, 2025 or the date of termination of the revolving commitments thereunder, and the outstanding loans under the Senior Secured Revolving Credit Facility will mature on September 21, 2026. The Senior Secured Revolving Credit Facility also requires mandatory prepayment of interest and principal upon certain events, including after the date of termination of the revolving commitments thereunder from asset sales, extraordinary receipts, returns of capital, equity issuances, and incurrence of indebtedness, with certain exceptions and minimum amount thresholds.

Borrowings under the Senior Secured Revolving Credit Facility are subject to compliance with a borrowing base test. Amounts drawn under the Senior Secured Revolving Credit Facility in U.S. dollars will bear interest at either term SOFR plus a credit spread adjustment of 0.10% plus 2.5%, or the prime rate plus 1.5%. The Company may elect either the term SOFR or prime rate at the time of drawdown, and loans denominated in U.S. dollars may be converted from one rate to another at any time at the Company’s option, subject to certain conditions. Amounts drawn under the Senior Secured Revolving Credit Facility in other permitted currencies will bear interest at the relevant rate specified therein plus 2.5%.

During the period commencing on September 21, 2023 and ending on the earlier of the Commitment Termination Date or the date of termination of the revolving commitments under the Senior Secured Revolving Credit Facility, the Company will pay a commitment fee of 0.375% per annum (based on the immediately preceding quarter’s average usage) on the daily unused amount of the commitments then available thereunder.

In connection with the Senior Secured Revolving Credit Facility, the Company has made certain representations and warranties and must comply with various covenants and reporting requirements customary for facilities of this type. In addition, the Company must comply with the following financial covenants with respect to the Company and its consolidated subsidiaries: (a) the Company must maintain a minimum shareholders’ equity, measured as of each fiscal quarter end; and (b) the Company must maintain at all times an asset coverage ratio not less than 150%.

The Senior Secured Revolving Credit Facility contains events of default customary for facilities of this type. Upon the occurrence of an event of default, the Administrative Agent, at the request of the required lenders, may terminate the commitments and declare the outstanding advances and all other obligations under the Senior Secured Revolving Credit Facility immediately due and payable.

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The Company’s obligations under the Senior Secured Revolving Credit Facility are guaranteed by Prospect Flexible Funding, LLC, a subsidiary of the Company, and will be guaranteed by certain domestic subsidiaries of the Company that are formed or acquired by the Company in the future. The Company’s obligations under the Senior Secured Revolving Credit Facility are secured by a first priority security interest in substantially all of the Company’s assets and certain of the Company’s subsidiaries thereunder.

During the three months ended September 30, 2023, the Company entered into the Senior Secured Revolving Credit Facility. As of September 30, 2023, we had $6,200,000 outstanding on our Senior Secured Revolving Credit Facility. As of September 30, 2023, the investments used as collateral for the Senior Secured Revolving Credit Facility had an aggregate fair value of $17,090,718, which represents 100% of our total investments for the period. As of September 30, 2023, cash balances of $1,448,540 were used as collateral for the Senior Secured Revolving Credit Facility. The fair value of the Senior Secured Revolving Credit Facility was $6,200,000 and is categorized as Level 2 under ASC 820 as of September 30, 2023. The fair value of the Senior Secured Revolving Credit Facility is equal to its carrying value as the Senior Secured Revolving Credit Facility is repriced to a market rate of interest frequently.

In connection with the origination of the Senior Secured Revolving Credit Facility, we incurred $884,762 in fees, all of which are being amortized over the term of the Senior Secured Revolving Credit Facility. As of September 30, 2023, $877,497 remains to be amortized and is reflected as deferred financing costs on the Consolidated Statements of Assets and Liabilities.

During the three months ended September 30, 2023, we recorded $60,191 of interest costs and amortization of financing costs on the Senior Secured Revolving Credit Facility as interest expense.

Recent Developments

Management has evaluated all known subsequent events through the date the accompanying consolidated financial statements were available to be issued on November 14, 2023 and notes the following:                        

Issuance of Common Stock

For the period beginning October 1, 2023 and ending November 14, 2023, the Company issued 12,765 shares pursuant to its distribution reinvestment plan in the amount of $77,740.    

Repurchase Offer

On September 28, 2023, under our share repurchase program, we made a tender offer to purchase up to the number of shares of our issued and outstanding Class A common stock we could repurchase with the cash we retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan to those shareholders who elected to receive their distributions in the form of additional shares rather than in cash. The total cash retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan prior to this tender offer was approximately $113,374. The tender offer was for cash at a price equal to the net asset value per share as of October 31, 2023. The offer expired at 4:00 P.M., Eastern Time, on October 30, 2023, and a total of 283,611 shares were validly tendered and not withdrawn pursuant to the offer as of such date. In accordance with the terms of the offer, the Company purchased 21,113 shares validly tendered and not withdrawn at a price equal to $5.37 per share for an aggregate purchase price of approximately $113,374.                                                                                     

Senior Secured Revolving Credit Facility

On November 2, 2023, we paid down $500,000 on the Senior Secured Revolving Credit Facility. As of November 14, 2023, there was a $5,700,000 outstanding Senior Secured Revolving Credit Facility balance.

Distributions

On October 20, 2023, the Board of Directors declared a distribution for the month of October 2023, which reflects a targeted annualized distribution rate of 7.00% based on the current net asset value per share for the fourth fiscal quarter ended June 30, 2023. The distribution has a monthly record date as of the close of business of the last Friday in October 2023 and equals a weekly amount of $0.00819 per share of common stock. The distribution was paid to stockholders of record as of the monthly record date set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
October 27, 2023	November 3, 2023	$0.03276

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On November 13, 2023, the Board of Directors declared distributions for the months of November 2023 and December 2023, which reflect a targeted annualized distribution rate of 7.00% based on the current net asset value per share for the fourth fiscal quarter ended June 30, 2023. The distributions have a monthly record date as of the close of business of the last Friday in November 2023 and December 2023 and equal a weekly amount of $0.00730 per share of common stock. The distributions will be paid to stockholders of record as of the monthly record dates set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
November 24, 2023	December 1, 2023	$0.02920
December 29, 2023	January 5, 2024	$0.03650

Distributions

General

We elected to be treated, beginning with our fiscal year ending December 31, 2012, and intend to qualify annually thereafter, as a RIC under the Code. To maintain RIC tax treatment, we generally must, among other things, distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to our stockholders. In order to avoid certain excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum of: (i) 98% of our ordinary income for the calendar year, (ii) 98.2% of our recognized capital gains in excess of recognized capital losses for the one-year period generally ending on October 31 of the calendar year and (iii) any ordinary income or capital gains recognized but not distributed in preceding years and on which we paid no federal income tax.

While we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% U.S. federal excise tax, we may retain sufficient amounts of our taxable income and capital gains such that we may be unable to avoid entirely the imposition of the tax. In that event, we will be subject to U.S. federal income tax imposed at corporate rates on any retained income, and we will also be liable for the U.S. federal excise tax but only on the amount by which we do not meet the foregoing distribution requirement.

Our Board of Directors has authorized, and has declared, cash distributions on our common stock on a monthly basis since the second quarter of 2015 (in our capacity as TPIC). The amount of each such distribution is subject to our Board of Directors’ discretion and applicable legal restrictions related to the payment of distributions. We calculate each stockholder’s specific distribution amount for the month using record and declaration dates, and distributions will begin to accrue on the date we accept subscriptions for shares of our common stock. From time to time, we may also pay interim distributions at the discretion of our Board of Directors. Each year a statement on Internal Revenue Service Form 1099-DIV (or any successor form) identifying the source of the distribution (i.e.,(i) paid from investment company taxable income, which is generally our net ordinary income plus our realized net short-term capital gains in excess of realized net long-term capital gains, (ii) paid from net capital gain on the sale of securities, which is our realized net long-term capital gains in excess of realized net-short term capital losses, and/or (iii) a return of paid-in capital surplus, which is generally a nontaxable distribution) will be mailed to our stockholders. Our distributions may exceed our earnings, especially during the period before we have substantially invested the proceeds from our offering. As a result, a portion of the distributions we make may represent a return of capital for tax purposes.

We have adopted an “opt in” distribution reinvestment plan for our common stockholders. As a result, when we make a distribution, stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of our common stock. Any distributions reinvested under the plan will nevertheless remain taxable to U.S. stockholders.

Related Party Transactions                                                    

License Agreement

We entered into a license agreement with an affiliate of our Adviser, pursuant to which the affiliate granted us a non-exclusive, royalty free license to use the “Prospect” name. Under this license agreement, we have the right to use such name for so long as our Adviser or another affiliate of the Adviser is our investment adviser. Other than with respect to this limited license, we have no legal right to the “Prospect” name or logo.                                     

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Investment Advisory Agreement                                                

We have entered into the Investment Advisory Agreement with our Adviser, pursuant to which we would pay our Adviser a fee for its services under the Investment Advisory Agreement consisting of two components - a base management fee and an incentive fee. Under the Amended and Restated Advisory Agreement, we reduced the base management fee from an annual rate of 1.75% to 1.20% and eliminated the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. Until such January 1, 2022 effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. The cost of any advisory fees payable to the Adviser will ultimately be borne by our stockholders. See “-Investment Advisory Fees.”

Certain members of our senior management hold an equity interest in our Adviser.  Members of our senior management also serve as principals of other investment managers affiliated with our Adviser that do and may in the future manage investment funds, accounts or other investment vehicles with investment objectives similar to ours.

Administration Agreement

Pursuant to the agreement and plan of merger, as amended and restated, between TPIC and PWAY, the Administrator, an affiliate of the Adviser, became the administrator for the Company pursuant to an administrative agreement, as amended and restated as of June 17, 2019 (the "Administration Agreement").The Administrator performs, oversees and arranges for the performance of administrative services necessary for the operation of the Company. These services include, but are not limited to, accounting, finance and legal services. For providing these services, facilities and personnel, the Company reimburses the Administrator for the Company’s actual and allocable portion of expenses and overhead incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and the Company’s allocable portion of the costs of its Chief Financial Officer and Chief Compliance Officer and her staff. For the three months ended September 30, 2023 and 2022, allocation of overhead from the Administrator to the Company was $223,750 and $60,582, respectively. As of September 30, 2023 and June 30, 2023, $1,087,384 and $868,634, respectively, was payable to the Administrator by the Company.

Co-Investments

On January 13, 2020, (amended on August 2, 2022), the parent company of the Adviser received an exemptive order from the SEC (the “Order”),which superseded a prior co-investment exemptive order granted on February 10, 2014, granting the ability to negotiate terms other than price and quantity of co-investment transactions with other funds managed by the Adviser or certain affiliates, including Prospect Capital Corporation (“PSEC”) and Priority Income Fund, Inc. (“PRIS”), where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions included therein.

Under the terms of the relief permitting us to co-invest with other funds managed by our Investment Adviser or its affiliates, a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company’s independent directors must make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching of the Company or its stockholders on the part of any person concerned and (2) the transaction is consistent with the interests of the Company’s stockholders and is consistent with the Company’s investment objective and strategies. In certain situations where co-investment with one or more funds managed by the Adviser or its affiliates is not covered by the Order, such as when there is an opportunity to invest in different securities of the same issuer, the personnel of the Adviser or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. Moreover, except in certain circumstances, when relying on the Order, the Company will be unable to invest in any issuer in which one or more funds managed or owned by the Adviser or its affiliates has previously invested.    

Officers and Directors

Certain officers and directors of the Company are also officers and directors of the Adviser and its affiliates. There were no fees paid to the independent directors of the Company as the Company did not exceed the minimum net asset value required (i.e., greater than $100 million) to receive a fee for the three months ended September 30, 2023. The officers do not receive any direct compensation from the Company.                                                                                                                                    

Expense Limitation Agreement

The Company entered into an expense limitation agreement, dated March 31, 2019 (the "Former ELA"), with PFIM, which was terminated effective February 17, 2021 in accordance with its terms. On and effective April 20, 2021, the Company entered into

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a new expense limitation agreement with the Adviser, which was amended and restated on July 7, 2021 to extend the period during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement, from September 30, 2021 to June 30, 2022 (the "First Amended and Restated ELA"). On August 23, 2022, the Company entered into the Second Amended and Restated Expense Limitation Agreement (the "Second Amended and Restated ELA") to extend the period during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement from June 30, 2022 to December 31, 2022. On April 24, 2023, the Company entered into the Third Amended and Restated Expense Limitation Agreement (the “Third Amended and Restated ELA” and, together with the First Amended and Restated ELA and the Second Amended and Restated ELA, the "New ELA") to extend the period during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement from December 31, 2022 to June 30, 2024. Other than this change, the terms and conditions of the Third Amended and Restated ELA are identical to those of the First and Second Amended and Restated ELAs. The New ELA has an initial term ending on June 30, 2024 and may be continued thereafter for successive one-year periods in accordance with its terms. Pursuant to the terms of each expense limitation agreement the applicable investment adviser, in its sole discretion, could waive a portion or all of the investment advisory fees that it was entitled to receive under its investment advisory agreement with the Company in order to limit the Company's operating expenses to an annual rate, expressed as a percentage of the Company's average quarterly net assets, equal to 8.00%. In addition, under the New ELA, the Adviser has agreed to waive its investment advisory fees to the extent necessary to limit the Company's operating expenses to such annual rate from the effective date of the New ELA through June 30, 2024. The Former ELA did not contain this guaranteed waiver. Other than this guaranteed waiver, the terms and conditions of the New ELA are substantially similar to those of the Former ELA. See “Expense Limitation Agreement” below.

Expense Limitation Agreement                                                    

Former Expense Limitation Agreement with PFIM

Concurrently with the closing of the Merger, we entered into the Former ELA with PFIM. On and effective February 17, 2021, the Former ELA was terminated in accordance with its terms.

Pursuant to the Former ELA, PFIM, in its sole discretion, could waive a portion or all of the investment advisory fees that it was entitled to receive pursuant to the Former Investment Advisory Agreement in order to limit our Operating Expenses (as defined below) to an annual rate, expressed as a percentage of our average quarterly net assets, equal to 8.00% (the “Annual Limit”). For purposes of the Former ELA, the term “Operating Expenses” with respect to the Company, is defined to include all expenses necessary or appropriate for the operation of the Company, including but not limited to PFIM’s base management fee, any and all costs and expenses that qualify as line item “organization and offering” expenses in the consolidated financial statements of the Company as the same are filed with the SEC and other expenses described in the Former Investment Advisory Agreement, but does not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses (such as sales commissions, dealer manager fees, and similar expenses) are not Operating Expenses. On April 30, 2020, the Company's Board of Directors approved extending the Expense Limitation Agreement for an additional 12-month term ending on April 30, 2021.

Any amount waived pursuant to the Former ELA is subject to repayment to PFIM (a “Former ELA Reimbursement”) by us within the three years following the end of the quarter in which the waiver was made by PFIM. Although the Former ELA was terminated effective February 17, 2021, PFIM maintains its right to repayment for any waiver it has made under the Former ELA, subject to the Former Repayment Limitations (discussed below).

Any Former ELA Reimbursement can be made solely in the event that we have sufficient excess cash on hand at the time of any proposed Former ELA Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such quarter over the Company’s actual Operating Expenses for such quarter and (ii) the amount of Former ELA Reimbursement which, when added to the Company’s expenses for such quarter, permits the Company to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Company shares) (the “Distribution”) from the sum of (x) the Company’s net investment income (loss) for such quarter plus (y) the Company’s net realized gains (losses) for such quarter (collectively, the “Former Repayment Limitations”). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any Former ELA Reimbursement will be treated as an expense of the Company for such quarter, without regard to the GAAP treatment of such expense. In the event that the Company is unable to make a full payment of any Former ELA Reimbursements due for any applicable quarter because the Company does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Company for accounting purposes and shall be paid when the Company has sufficient cash on hand (subject to the Repayment Limitations); provided, that in the case of any Former ELA Reimbursements, such payment shall be made no later than the date that is three years following the end of the quarter in which the applicable waiver was made by PFIM.

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Expense Limitation Agreement with the Adviser

Pursuant to the New ELA, our Adviser will waive a portion or all of the investment advisory fees that it is entitled to receive pursuant to the Investment Advisory Agreement, from the effective date of the New ELA through June 30, 2024, in order to limit our Operating Expenses (as defined below) to an annual rate, expressed as a percentage of our average quarterly net assets, equal to 8.00% (the “Annual Limit”). After June 30, 2024, such waiver may be made at our Adviser’s option and in its sole discretion. Even if the Adviser decides to voluntarily waive its investment advisory fees for a quarter ended after June 30, 2024, there is no guarantee that the Adviser will continue to do so. For purposes of the New ELA, the term “Operating Expenses” with respect to the Company, is defined to include all expenses necessary or appropriate for the operation of the Company, including but not limited to our Adviser’s base management fee, any and all costs and expenses that qualify as line item “organization and offering” expenses in the consolidated financial statements of the Company as the same are filed with the SEC and other expenses described in the Investment Advisory Agreement, but does not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses (such as sales commissions, dealer manager fees, and similar expenses) are not Operating Expenses. Our Adviser waived fees, pursuant to the New ELA, in an amount of $83,359 and $112,434 for the three months ended September 30, 2023 and 2022, respectively.

Any amount waived pursuant to the New ELA is subject to repayment to our Adviser (an “ELA Reimbursement”) by us within the three years of the date on which the waiver was made by our Adviser. If the New ELA is terminated or expires pursuant to its terms, our Adviser will maintain its right to repayment for any waiver it has made under the New ELA, subject to the Repayment Limitations (discussed below).

Any ELA Reimbursement can be made solely in the event that we have sufficient excess cash on hand at the time of any proposed ELA Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such quarter over the Company’s actual Operating Expenses for such quarter and (ii) the amount of ELA Reimbursement which, when added to the Company’s expenses for such quarter, permits the Company to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Company shares) (the “Distribution”) from the sum of (x) the Company’s net investment income (loss) for such quarter plus (y) the Company’s net realized gains (losses) for such quarter (collectively, the “Repayment Limitations”). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any ELA Reimbursement will be treated as an expense of the Company for such quarter, without regard to the GAAP treatment of such expense. In the event that the Company is unable to make a full payment of any ELA Reimbursements due for any applicable quarter because the Company does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Company for accounting purposes and shall be paid when the Company has sufficient cash on hand (subject to the Repayment Limitations); provided, that in the case of any ELA Reimbursements, such payment shall be made no later than the date that is three years after the date on which the applicable waiver was made by our Adviser.

Investment Advisory Fees

Overview

On April 20, 2021, the Company entered into the Investment Advisory Agreement with the Adviser, which was unanimously approved by the Company’s Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), on February 18, 2021, subject to stockholder approval of the Investment Advisory Agreement. The Company’s stockholders approved the Investment Advisory Agreement at a Special Meeting of Stockholders held on March 31, 2021.

The Investment Advisory Agreement replaced the Former Investment Advisory Agreement with PFIM, the Company's former investment adviser, which terminated effective April 20, 2021. The Investment Advisory Agreement is identical in all material respects to the Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as the Company’s investment adviser instead of PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM.

On November 5, 2021, we amended and restated the Investment Advisory Agreement to reduce the advisory fees payable thereunder, effective as of January 1, 2022 and until the one year anniversary of the listing of our common stock on a national securities exchange (the “Listing Anniversary”), as further discussed below. The Amended and Restated Advisory Agreement was unanimously approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), and became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. The Amended and Restated Advisory Agreement has an

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initial two-year term and may be continued thereafter for successive one-year periods if such continuance is approved in the manner provided for under Section 15 of the 1940 Act. The Amended and Restated Advisory Agreement was most recently

approved by our Board of Directors, including all of our directors who are not “interested persons” (as defined in the 1940 Act),

on June 15, 2023.

Each of these investment advisory agreements is further discussed below.

Former Investment Advisory Agreement

Pursuant to the Former Investment Advisory Agreement, we paid PFIM a fee for investment advisory and management services consisting of a base management fee and an incentive fee. The cost of both the base management fee payable to PFIM and any incentive fees it earned would ultimately be borne by our stockholders.

Base Management Fee. The base management fee was calculated at an annual rate of 1.75% (0.4375% quarterly) of our average total assets, which included any borrowings for investment purposes. For the first quarter of our operations following the Merger, the base management fee was calculated based on the average value of our total assets as of the date of the Former Investment Advisory Agreement and at the end of the calendar quarter in which the date of the Former Investment Advisory Agreement fell, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Subsequently, the base management fee was payable quarterly in arrears, and was calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter was appropriately pro-rated. At PFIM’s option, the base management fee for any period could be deferred, without interest thereon, and paid to PFIM at any time subsequent to any such deferral as PFIM determined.

Incentive Fee. The incentive fee consisted of two parts: (1) the subordinated incentive fee on income and (2) the capital gains incentive fee.

Subordinated Incentive Fee on Income. The first part of the incentive fee, which is referred to as the subordinated incentive fee on income, was calculated and payable quarterly in arrears based upon our “pre-incentive fee net investment income” for the immediately preceding calendar quarter. For purposes of this fee, “pre-incentive fee net investment income” meant interest income, dividend income and distribution cash flows from equity investments and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we received) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses reimbursed under the Former Investment Advisory Agreement and the Administration Agreement, any interest expense and dividends paid on any issued and outstanding preferred shares, but excluding the organization and offering expenses and incentive fees on income and capital gains). Pre-incentive fee net investment income included, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we had not yet received in cash. Pre-incentive fee net investment income did not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. The subordinated incentive fee on income was subject to a quarterly fixed preferred return to investors, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, of 1.5% (6.0% annualized), subject to a “catch up” feature. Operating expenses were included in the calculation of the subordinated incentive fee on income.

We would pay PFIM a subordinated incentive fee on income for each calendar quarter as follows:

•No incentive fee would be payable to PFIM in any calendar quarter in which our pre-incentive fee net investment income did not exceed the preferred return rate of 1.5%.

•100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeded the preferred return but was less than or equal to 1.875% in any calendar quarter (7.5% annualized). We refer to this portion of our pre-incentive fee net investment income (which exceeded the preferred return but was less than or equal to 1.875%) as the “catch-up.” The effect of the “catch-up” provision was that, if our pre-incentive fee net investment income reached 1.875% in any calendar quarter, PFIM would receive 20.0% of our pre-incentive fee net investment income as if a preferred return did not apply.

•20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeded 1.875% in any calendar quarter (7.5% annualized) would be payable to PFIM. This reflected that once the preferred return was reached and the catch-up was achieved, 20.0% of all pre-incentive fee net investment income thereafter would be allocated to PFIM.

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Capital Gains Incentive Fee. The second part of the incentive fee, which is referred to as the capital gains incentive fee, was determined and payable in arrears as of the end of each calendar year (or upon termination of the Former Investment Advisory Agreement, as of the termination date), and equaled 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year. In determining the capital gains incentive fee payable to PFIM, we would calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equaled the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed.

Aggregate realized capital losses equaled the sum of the amounts by which the aggregate net sales price of each investment was less than the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate unrealized capital depreciation equaled the sum of the differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis of such investment as of the applicable calendar year-end. At the end of the applicable calendar year, the amount of capital gains that served as the basis for our calculation of the capital gains incentive fee involved netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the aggregate unrealized capital depreciation. If this number was positive, then the capital gains incentive fee payable was equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception. Operating expenses were not taken into account when determining capital gains incentive fees.

Investment Advisory Agreement

Pursuant to the Investment Advisory Agreement, we paid the Adviser a fee for investment advisory and management services consisting of a base management fee and an incentive fee. The cost of both the base management fee payable to the Adviser and any incentive fees it earns is ultimately borne by our stockholders. See "Amended and Restated Advisory Agreement" below for additional information.

Base Management Fee. The base management fee was calculated at an annual rate of 1.75% (0.4375% quarterly) of our average total assets, which includes any borrowings for investment purposes. For the first quarter of our operations following the date of Investment Advisory Agreement, the base management fee was calculated based on the average value of our total assets as of the date of the Investment Advisory Agreement and at the end of the calendar quarter in which the date of the Investment Advisory Agreement fell, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Subsequently, the base management fee is payable quarterly in arrears, and is calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and is appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter is appropriately pro-rated. At the Adviser’s option, the base management fee for any period may be deferred, without interest thereon, and paid to the Adviser at any time subsequent to any such deferral as the Adviser determines.

Incentive Fee. The incentive fee consisted of two parts: (1) the subordinated incentive fee on income and (2) the capital gains incentive fee.

Subordinated Incentive Fee on Income. The first part of the incentive fee, which is referred to as the subordinated incentive fee on income, is calculated and payable quarterly in arrears based upon our “pre-incentive fee net investment income” for the immediately preceding calendar quarter. For purposes of this fee, “pre-incentive fee net investment income” means interest income, dividend income and distribution cash flows from equity investments and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses reimbursed under the Investment Advisory Agreement and the Administration Agreement, any interest expense and dividends paid on any issued and outstanding preferred shares, but excluding the organization and offering expenses and incentive fees on income and capital gains). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. The subordinated incentive fee on income is subject to a quarterly fixed preferred return to investors, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, of 1.5% (6.0% annualized), subject to a “catch up” feature. Operating expenses are included in the calculation of the subordinated incentive fee on income.

We will pay our Adviser a subordinated incentive fee on income for each calendar quarter as follows:

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•    No incentive fee will be payable to our Adviser in any calendar quarter in which our pre-incentive fee net investment income does not exceed the preferred return rate of 1.5%.

•    100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the preferred return but is less than or equal to 1.875% in any calendar quarter (7.5% annualized). We refer to this portion of our pre-incentive fee net investment income (which exceeds the preferred return but is less than or equal to 1.875%) as the “catch-up.” The effect of the “catch-up” provision is that, if our pre-incentive fee net investment income reaches 1.875% in any calendar quarter, our Adviser will receive 20.0% of our pre-incentive fee net investment income as if a preferred return did not apply.

•    20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 1.875% in any calendar quarter (7.5% annualized) will be payable to our Adviser. This reflects that once the preferred return is reached and the catch-up is achieved, 20.0% of all pre-incentive fee net investment income thereafter will be allocated to our Adviser.

Capital Gains Incentive Fee. The second part of the incentive fee, which is referred to as the capital gains incentive fee, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year; provided that the incentive fee determined as of December 31, 2021 will be calculated for a period of shorter than twelve calendar months to take into account any net realized capital gains, if any, computed net of all realized capital losses and unrealized capital depreciation for the period commencing as of the date of the Investment Advisory Agreement and ending on December 31, 2021. In determining the capital gains incentive fee payable to the Adviser, we calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equal the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate realized capital losses equal the sum of the amounts by which the aggregate net sales price of each investment is less than the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate unrealized capital depreciation equals the sum of the differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis of such investment as of the applicable calendar year-end. At the end of the applicable calendar year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee involves netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the aggregate unrealized capital depreciation. If this number is positive, then the capital gains incentive fee payable is equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception. Operating expenses are not taken into account when determining capital gains incentive fees.

Amended and Restated Advisory Agreement

On November 5, 2021, we amended and restated the Investment Advisory Agreement to reduce the base management fee from an annual rate of 1.75% (0.4375% quarterly) to 1.20% (0.30% quarterly) and eliminate the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. As such, until the Listing Anniversary, the base management fee will be calculated at an annual rate of 1.20% (0.30% quarterly) and the Adviser will not be entitled to any incentive fee. Following the Listing Anniversary (1) the base management fee will be calculated at an annual rate of 1.75% (0.4375% quarterly), commencing with the first base management fee calculation that occurs after such anniversary, and (2) the Adviser will be entitled to receive the same incentive fee, including the subordinated incentive fee on income and the capital gains incentive fee, as set forth in the Investment Advisory Agreement and discussed above, commencing with the first calendar quarter after such anniversary. The Amended and Restated Advisory Agreement became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. See “Investment Advisory Agreement” above.

During the three months ended September 30, 2023 and 2022, the total base management fee incurred by the Adviser was $83,359 and $112,434, respectively, which were waived by the Adviser. As of September 30, 2023 and June 30, 2023, the total base management fee due to the Adviser after the waiver was $0.

There were no incentive fees payable as of September 30, 2023 or June 30, 2023. During the three months ended September 30, 2023 and 2022, there were no incentive fees incurred.

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Asset Coverage

In accordance with the 1940 Act, the Company is currently only allowed to borrow amounts such that its “asset coverage,” as defined in the 1940 Act, is at least 150% after such borrowing. “Asset coverage” generally refers to a company’s total assets, less all liabilities and indebtedness not represented by “senior securities,” as defined in the 1940 Act, divided by total senior securities representing indebtedness and, if applicable, preferred stock. “Senior securities” for this purpose includes borrowings from banks or other lenders, debt securities and preferred stock.

On March 23, 2018, an amendment to Section 61(a) of the 1940 Act was signed into law to permit BDCs to reduce the minimum “asset coverage” ratio from 200% to 150%, so long as certain approval and disclosure requirements are satisfied. In addition, for BDCs like the Company whose securities are not listed on a national securities exchange, the Company is also required to offer to repurchase its outstanding shares at the rate of 25% per quarter over four calendar quarters. Under the existing 200% minimum asset coverage ratio, the Company is permitted to borrow up to one dollar for investment purposes for every one dollar of investor equity, and under the 150% minimum asset coverage ratio, the Company will be permitted to borrow up to two dollars for investment purposes for every one dollar of investor equity. In other words, Section 61(a) of the 1940 Act, as amended, permits BDCs to potentially increase their debt-to-equity ratio from a maximum of 1 to 1 to a maximum of 2 to 1.

At the 2019 Annual Meeting, stockholders approved the application to the Company of the 150% minimum asset coverage ratio set forth in Section 61(a)(2) of the 1940 Act. As a result, and subject to certain additional disclosure requirements and the repurchase obligations described above, the minimum asset coverage ratio applicable to the Company was reduced from 200% to 150%, effective as of March 16, 2019.

Below is our quarterly asset coverage since June 30, 2019. As of September 30, 2023, our asset coverage ratio stood at 311% based on the outstanding principal amount of our senior securities representing indebtedness.

Revolving Credit Facility	Total Amount Outstanding		Asset Coverage per Unit(1)		Involuntary Liquidating Preference per Unit(2)	Average Market Value per Unit(2)
September 30, 2023	$	6,200,000	$	3,114	—	—
June 30, 2023	$	8,600,000	$	2,709	—	—
March 31, 2023	$	15,477,000	$	1,937	—	—
December 31, 2022	$	17,800,000	$	1,830	—	—
September 30, 2022	$	20,000,000	$	1,792	—	—
June 30, 2022	$	20,500,000	$	1,815	—	—
March 31, 2022	$	21,000,000	$	1,895	—	—
December 31, 2021	$	21,000,000	$	1,924	—	—
September 30, 2021	$	21,000,000	$	1,938	—	—
June 30, 2021	$	21,000,000	$	1,950	—	—
March 31, 2021	$	21,000,000	$	1,971	—	—
December 31, 2020	$	21,000,000	$	1,976	—	—
September 30, 2020	$	21,000,000	$	1,947	—	—
June 30, 2020	$	21,000,000	$	1,931	—	—
March 31, 2020	$	21,000,000	$	1,914	—	—
December 31, 2019	$	21,000,000	$	2,018	—	—
September 30, 2019	$	15,500,000	$	2,461	—	—
June 30, 2019	$	5,500,000	$	5,256	—	—
(1) The asset coverage ratio is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit.
(2) This column is inapplicable.

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Critical Accounting Estimates

We prepare our Financial Statements in accordance with U.S. GAAP. In applying many of these accounting principles, we make estimates that affect the reported amounts of assets, liabilities, revenues and expenses in our consolidated financial statements. We base our estimates on historical experience and other factors that we believe are reasonable under the circumstances. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. These estimates, however, are subjective and subject to change, and actual results may differ materially from our current estimates due to the inherent nature of these estimates.

Our critical accounting estimates, including those relating to the valuation of our investment portfolio, are described below. The critical accounting estimates should be read in conjunction with our risk factors as disclosed in Part I, Item 1A. Risk Factors, in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023. See Note 2 to our consolidated financial statements for more information on how fair value of our investment portfolio is determined, and Note 8 to our consolidated financial statements for information about the inputs and assumptions used to measure fair value of our investment portfolio.

Fair value of Financial Instruments

To value our investments, we follow the guidance of ASC 820, Fair Value Measurement (“ASC 820”), that defines fair value, establishes a framework for measuring fair value in conformity with GAAP, and requires disclosures about fair value measurements. In accordance with ASC 820, the fair value of our investments is defined as the price that we would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment is transacted.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1. Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2. Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3. Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. All of our investments carried at fair value are classified as Level 2 or Level 3 as of September 30, 2023 and June 30, 2023, with a significant portion of our investments classified as Level 3.

Investments

We determine the fair value of our investments on a quarterly basis, with changes in fair value reflected as a net change in unrealized gains (losses) from investments in the Consolidated Statement of Operations.

The Company applies the SEC’s Rule 2a-5 in determining fair value of its investments. Rule 2a-5 establishes a consistent,

principles-based framework for boards of directors to use in creating their own specific processes in order to determine fair values in good faith.

Investments for which market quotations are readily available must be valued at such market quotations. In order to validate market quotations, management and the independent valuation firm look at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. In determining the range of values for debt instruments where market quotations are not readily available, we perform a multiple step valuation process with our investment professionals alongside our independent valuation firms. The independent valuation firms prepare valuations for each investment which are presented by the independent valuation firms to the Audit Committee of our Board of Directors. The Audit Committee makes a recommendation to the Board of Directors of the value for each investment and the Board of Directors approves the values with the input of the Adviser quarterly. For intra-quarter valuations, the Adviser as Valuation Designee takes the most recent quarterly valuations approved by the Board of Directors, calculates the estimated earnings per share for each investment in order to adjust the valuation of each investment for income that is expected to be realized and considers other factors that should be taken into account in order to adjust the valuations, including, market changes in expected returns for similar investments; performance improvement or deterioration which would change the margin added to the base interest rate charged; the nature and realizable value of any collateral; the issuer’s ability to make payments and its earnings and

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discounted cash flow; the markets in which the issuer does business; comparisons to publicly traded securities; and other relevant factors.

Management and the independent valuation firm may consider various factors in determining the fair value of our investments. One prominent factor is the enterprise value of a portfolio company determined by applying a market approach such as using earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, net income and/or book value multiples for similar guideline public companies and/or similar recent investment transactions and/or an income approach, such as the discounted cash flow technique. If relevant, management and the independent valuation firms will consider the pricing indicated by external events such as a purchase or sale transaction to corroborate the valuation.

Changes in market yields, discount rates, capitalization rates or EBITDA multiples, each in isolation, may change the fair value measurement of certain of our investments. Generally, an increase in market yields, discount rates or capitalization rates, or a decrease in EBITDA (or other) multiples may result in a decrease in the fair value measurement of certain of our investments.

Our investments that are classified as Level 3 are primarily valued utilizing a discounted cash flow, enterprise value (“EV”) waterfall, or asset recovery analysis. The discounted cash flow converts future cash flows or earnings to a range of fair values from which a single estimate may be derived utilizing an appropriate discount rate. The fair value measurement is based on the net present value indicated by current market expectations about those future amounts. Under the EV waterfall, the EV of a portfolio company is first determined and allocated over the portfolio company’s securities in order of their preference relative to one another (i.e., “waterfall” allocation). To determine the EV, we typically use a market (multiples) valuation approach that considers relevant and applicable market trading data of guideline public companies, transaction metrics from precedent merger and acquisitions transactions, and/or a discounted cash flow . The asset recovery analysis is intended to approximate the net recovery value of an investment based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company’s assets.

In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. Various risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market and certain benchmark credit indices are considered, to determine the value of each CLO investment.

At September 30, 2023, $14,534,715, $620,319, $331,071 and $1,604,613, of our total investments were valued using the discounted cash flow, enterprise value waterfall, sensitivity analysis and market quotes, respectively, compared to $18,808,075, $478,096, $499,544 and $2,129,472, respectively, at June 30, 2023.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations.

Recent Accounting Pronouncements

For discussion of recent accounting pronouncements, refer to Note 2 within the accompanying notes to the consolidated financial statements.

Item 3: Quantitative and Qualitative Disclosures About Market Risk.

We are subject to financial market risks, including changes in interest rates and equity price risk. The economic effects of the ongoing conflict between Russia and Ukraine, renewed hostilities in the Middles East and the ensuing geopolitical uncertainty have introduced significant volatility in the financial markets, and the effects of this volatility could materially impact our market risks. For additional information concerning risks and their potential impact on our business and our operating results, see Part I, Item 1A. Risk Factors, in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates impacting some of the loans in our portfolio which have floating interest rates. Additionally, because we fund a portion of our investments

65

with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. See Part I, Item 1A. Risk Factors, “Risks Relating to Our Business - Rising interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Our debt investments may be based on floating rates or fixed rates. For our floating rate loans the rates are determined from the LIBOR, SOFR, EURO Interbank Offer Rate, the Federal Funds Rate or the Prime Rate. The floating interest rate loans may be subject to an interest rate floor. Our loans typically have durations of one, two, three, six or twelve months after which they reset to current market interest rates. As of September 30, 2023, 98% (based on fair value) of our investments paid variable interest rates and 2% paid fixed rates (considering interest rate flows for floating rate instruments, excluding our investments in equity and structured subordinated notes). A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to certain variable rate investments we hold and to declines in the value of any fixed rate investments we may hold in the future.

We also have a revolving credit facility that is based on floating SOFR or prime rate. Amounts drawn under the Senior Secured Revolving Credit Facility in U.S. dollars will bear interest at either term SOFR plus a credit spread adjustment of 0.10% plus 2.5%, or the prime rate plus 1.5%. The outstanding balance of the Senior Secured Revolving Credit Facility is $6,200,000 as of September 30, 2023.

The following table shows the estimated annual impact of changes in interest rates (considering interest rate flows for floating rate instruments, excluding our investments in equity, fixed rate instruments and structured subordinated notes) on our interest income, interest expense and net interest income, assuming no changes in our investment portfolio in effect as of September 30, 2023:

Interest Rate Basis Point Change	Interest Income		Interest Expense		Net Investment Income
Up 300 basis points	$	404,431	$	186,000	$	218,431
Up 200 basis points	$	269,621	$	124,000	$	145,621
Up 100 basis points	$	134,810	$	62,000	$	72,810
Down 100 basis points	$	(134,810)	$	(62,000)	$	(72,810)
Down 200 basis points	$	(269,621)	$	(124,000)	$	(145,621)
Down 300 basis points	$	(404,431)	$	(186,000)	$	(218,431)

Because we may borrow money to make investments, our net investment income may be dependent on the difference between the rate at which we borrow funds and the rate at which we invest these funds. In periods of increasing interest rates, our cost of funds would increase, which may reduce our net investment income. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

We may also face risk due to the lack of liquidity in the marketplace which could prevent us from raising sufficient funds to adequately invest in a broad pool of assets. We are subject to other financial market risks, including changes in interest rates. However, at this time, with no portfolio investments, this risk is immaterial.

In addition, we may have risk regarding portfolio valuation. For discussion of critical accounting policies, estimates and risks regarding our portfolio valuation, refer to "Critical Accounting Estimates" above and to our Annual Report on Form 10-K for the year ended June 30, 2023.

Item 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures                                                        

As of September 30, 2023, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management

66

recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was necessarily required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

PART II

Item 1. Legal Proceedings

From time to time, we may become involved in various investigations, claims and legal proceedings that arise in the ordinary course of our business. These matters may relate to intellectual property, employment, tax, regulation, contract or other matters. The resolution of such matters as may arise will be subject to various uncertainties and, even if such claims are without merit, could result in the expenditure of significant financial and managerial resources. We are not aware of any material legal proceedings as of September 30, 2023.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed below, if any, and the risk factors in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended June 30, 2023 which could materially affect our business, financial condition or future results. The risks described in this report and in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In order to satisfy the reinvestment portion of our dividends for the three months ended September 30, 2023, we issued the following shares of common stock to stockholders of record on the dates noted below as part of our distribution reinvestment plan. These issuances were not subject to the registration requirements of the Securities Act of 1933, as amended.

Date of Issuance	Record Date	Number of Shares	Purchase Price per Share
July 28, 2023	August 4, 2023	5,633	$6.09
August 25, 2023	September 1, 2023	5,652	$6.09
September 29, 2023	October 6, 2023	7,135	$6.09

On September 28, 2023, under our share repurchase program, we made a tender offer to purchase up to the number of shares of our issued and outstanding Class A common stock we could repurchase with the cash we retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan to those shareholders who elected to receive their distributions in the form of additional shares rather than in cash. The total cash retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan prior to this tender offer was approximately $113,374. The tender offer was for cash at a price equal to the net asset value per share as of October 31, 2023. The offer expired at 4:00 P.M., Eastern Time, on October 30, 2023, and a total of 283,611 shares were validly tendered and not withdrawn pursuant to the offer as of such date. In accordance with the terms of the offer, the Company purchased 21,113 shares validly tendered and not withdrawn at a price equal to $5.37 per share for an aggregate purchase price of approximately $113,374.

Item 3: Default Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

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Item 5. Other Information

None of the Company’s officers or directors have adopted, modified or terminated trading plans under either a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933) for the three months ended September 30, 2023.

Item 6. Exhibits

The following documents are filed as part of this report or hereby incorporated into this report by reference to exhibits previously filed with the SEC (according to the number assigned to them in Item 601 of Regulation S-K):

Exhibit No.    Description

3.1     Fourth Amended Articles of Incorporation(1)

3.2     Articles Supplementary(2)

3.3     Articles Supplementary(3)

3.4    Articles of Merger of the Registrant(4)

3.5    Articles of Amendment(5)

3.6    Articles of Amendment(6)

3.7     Third Amended and Restated Bylaws(7)

3.8    Articles of Amendment(8)

3.9    Fourth Amended and Restated Bylaws(9)

10.1    First Amended and Restated Investment Advisory Agreement, by and between Prospect Flexible Income Fund, Inc.

and Prospect Capital Management L.P.(10)

10.2     Third Amended and Restated Expense Limitation Agreement, by and between Prospect Floating Rate and Alternative

Income Fund, Inc. and Prospect Capital Management L.P.(11)

31.1     Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *

31.2     Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *

32.1     Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *

32.2    Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *

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101.SCH Inline XBRL Taxonomy Extension Schema Document

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document

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________________________

*    Filed herewith.

(1)Incorporated by reference to Exhibit 2(a) to the Post-Effective Amendment No. 7 to the Registrant’s Registration Statement on Form N-2 (SEC File No. 333-174873) filed with the SEC on November 1, 2013.

(2)Incorporated by reference to Exhibit 2(a)(1) to the Pre-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form N-2 (SEC File No. 333-206730) filed with the SEC on March 3, 2016.

(3)Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed with the SEC on September 23, 2019.

(4)Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed with the SEC on April 1, 2019.

(5)Incorporated by reference to Exhibit 2(a)(4) to the Post-Effective Amendment No. 3 to the Registrant’s Registration Statement on Form N-2 (SEC File No. 333-230251) filed with the SEC on August 8, 2020.

(6)Incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed with the SEC on January 11, 2022.

68

(7)Incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K, filed with the SEC on January 11, 2022.

(8)Incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed with the SEC on September 21, 2022.

(9)Incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K, filed with the SEC on September 21, 2022.

(10)Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 10-Q, filed with the SEC on November 8, 2021.

(11)Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed with the SEC on April 24, 2023.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 14, 2023.

PROSPECT FLOATING RATE AND ALTERNATIVE INCOME FUND, INC.

    By: /s/ M. Grier Eliasek

    M. Grier Eliasek

    Chief Executive Officer

    (Principal Executive Officer)

    By: /s/ Kristin Van Dask

    Kristin Van Dask

    Chief Financial Officer

    (Principal Accounting and Financial Officer)

70

EX-31.1

Exhibit 31.1

CERTIFICATION BY CHIEF EXECUTIVE OFFICER

Certification of Chief Executive Officer

of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

I, M. Grier Eliasek, Chief Executive Officer, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Prospect Floating Rate and Alternative Income Fund, Inc. (the “Company”);

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4) The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5) The Company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

/s/ M. Grier Eliasek

    M. Grier Eliasek

    Chief Executive Officer

    (Principal Executive Officer)

    Date: November 14, 2023

EX-31.2

Exhibit 31.2

CERTIFICATION BY CHIEF FINANCIAL OFFICER

Certification of Chief Financial Officer

of Periodic Report Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

I, Kristin Van Dask, Chief Financial Officer, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Prospect Floating Rate and Alternative Income Fund, Inc. (the “Company”);

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4) The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5) The Company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

/s/ Kristin Van Dask

    Kristin Van Dask

    Chief Financial Officer

    (Principal Accounting and Financial Officer)

    Date: November 14, 2023

EX-32.1

Exhibit 32.1

CERTIFICATION BY CHIEF EXECUTIVE OFFICER

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Prospect Floating Rate and Alternative Income Fund, Inc. (the “Company”) for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, M. Grier Eliasek, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ M. Grier Eliasek

    M. Grier Eliasek

    Chief Executive Officer

    (Principal Executive Officer)

    Date: November 14, 2023

EX-32.2

Exhibit 32.2

CERTIFICATION BY CHIEF FINANCIAL OFFICER

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Prospect Floating Rate and Alternative Income Fund, Inc. (the “Company”) for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kristin Van Dask, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ Kristin Van Dask

    Kristin Van Dask

    Chief Financial Officer

    (Principal Accounting and Financial Officer)

    Date: November 14, 2023

XML

Cover - shares	3 Months Ended
	Sep. 30, 2023	Nov. 14, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	814-00908
Entity Registrant Name	Prospect Floating Rate and Alternative Income Fund, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	45-2460782
Entity Address, Address Line One	10 East 40th Street
Entity Address, Address Line Two	42nd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10016
City Area Code	212
Local Phone Number	448-0702
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,420,670
Entity Central Index Key	0001521945
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES - USD ($)	Sep. 30, 2023		Jun. 30, 2023
Assets
Investments at fair value	$ 17,090,718	[1]	$ 21,915,187
Cash and cash equivalents	6,442,317		5,730,723
Restricted cash	0		61,833
Receivable for investments sold	1,160,781		1,361,436
Deferred financing costs (Note 10)	877,497		230,022
Interest receivable	141,253		169,695
Prepaid expenses and other assets	130,886		163,076
Deferred offering costs	129,153		0
Receivable for repayments of portfolio investments	0		7,554
Total Assets	25,972,605		29,639,526
Liabilities
Payable for open trade	4,994,167		4,997,938
Due to Administrator (Note 4)	1,087,384		868,634
Accrued legal fees	303,366		68,959
Accrued audit fees	105,766		169,400
Distributions payable	98,612		98,197
Accrued expenses	73,089		70,542
Interest payable	3,397		71,994
Total Liabilities	12,865,781		14,945,664
Commitments and Contingencies (Note 9)	0		0
Net Assets	13,106,824		14,693,862
Common Stock, par value $0.001 per share (75,000,000 shares authorized; 2,407,904 and 2,409,452 Class A shares issued and outstanding, respectively) (Note 3)	2,408		2,410
Paid-in capital in excess of par (Note 3 and Note 6)	24,659,990		24,924,606
Total distributable earnings (loss) (Note 6)	(11,555,574)		(10,233,154)
Net Assets	$ 13,106,824		$ 14,693,862
Net Asset Value Per Share (Note 11) (in dollars per share)	$ 5.44		$ 6.10
Senior Secured Revolving Credit Facility
Liabilities
Line of credit	$ 6,200,000		$ 0

[1] Fair value is determined by the Company’s Board of Directors (see Note 2).

XML

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) - USD ($)	Sep. 30, 2023		Jun. 30, 2023
Statement of Financial Position [Abstract]
Investments, cost	$ 21,385,175	[1]	$ 25,391,631
Common stock, par value (usd per share)	$ 0.001		$ 0.001
Common stock, shares authorized (in shares)	75,000,000		75,000,000
Common stock, shares issued (in shares)	2,407,904		2,409,452
Common stock, shares outstanding (in shares)	2,407,904		2,409,452

[1] See Note 6 for a discussion of the tax cost of the portfolio.

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)		3 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Investment Income
Investment Income		$ 545,116	$ 795,513
Operating Expenses
Interest expense and credit facility expenses (Note 10)		290,213	269,258
Administrator Costs (Note 4)		223,750	60,582
General and administrative		97,518	57,602
Base management fees (Note 4)		83,359	112,434
Transfer agent’s fees and expenses		63,657	55,031
Insurance expense		32,191	60,989
Audit and tax expense		28,750	138,433
Legal expense		27,405	68,479
Valuation services		4,000	5,000
Offering costs		0	8,513
Total Operating Expenses		850,843	836,321
Expense limitation payment (Note 4)		(83,359)	(112,434)
Total Net Operating Expenses		767,484	723,887
Net Investment (Loss) Income		(222,368)	71,626
Net Realized Losses and Net Change in Unrealized Losses on Investments
Net realized losses		(215,195)	0
Net change in unrealized losses		(818,013)	(588,941)
Net Realized Losses and Net Change in Unrealized Losses on Investments		(1,033,208)	(588,941)
Extinguishment of debt		(66,844)	0
Net Decrease in Net Assets Resulting from Operations		$ (1,322,420)	$ (517,315)
Net decrease in net assets resulting from operations per share (Note 11)
Basic (in dollars per share)	[1]	$ (0.55)	$ (0.22)
Diluted (in dollars per share)	[1]	(0.55)	(0.22)
Distributions declared per share (in dollars per share)		$ 0.11	$ 0.14
Weighted-average shares of common stock outstanding
Basic (in shares)		2,404,057	2,375,375
Diluted (in shares)		2,404,057	2,375,375
Non-Control/ Non-Affiliate Investments
Investment Income
Investment Income		$ 432,079	$ 606,873
Structured Credit Securities
Investment Income
Investment Income		$ 113,037	$ 188,640

[1] For the the three months ended September 30, 2023 and 2022, the weighted average common shares outstanding were 2,404,057 and 2,375,375, respectively.

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CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS - USD ($)	3 Months Ended					12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022		Jun. 30, 2023
Investment Company, Net Assets [Roll Forward]
Beginning balance, Common stock, shares outstanding (in shares)	2,409,452
Beginning of period, Net Assets	$ 14,693,862		$ 15,845,448	$ 16,700,975	[1]	$ 16,700,975	[1]
Net Decrease in Net Assets and Temporary Equity Resulting from Operations:
Net investment (loss)	(222,368)			71,626
Net realized (losses) on investments	(215,195)
Net realized (losses) on extinguishment of debt	(66,844)
Net change in unrealized losses on investments	(818,013)			(588,941)
Distributions to Shareholders (Note 5)
Distributions from earnings				(247,706)
Return of capital distributions	(255,054)			(91,282)
Capital Transactions
Shares issued through reinvestment of distributions	$ 112,005	$ 113,374		$ 153,281
Repurchase of common shares (in shares)	(19,963)		(23,434)	(21,818)		(45,252)
Repurchase of common shares	$ (121,569)			$ (152,505)
Total Increase (Decrease) during period	$ (1,587,038)			(855,527)
Ending balance, Common stock, shares outstanding (in shares)	2,407,904	2,409,452				2,409,452
End of period, Net Assets	$ 13,106,824	$ 14,693,862		$ 15,845,448		$ 14,693,862
Common Stock
Investment Company, Net Assets [Roll Forward]
Beginning balance, Common stock, shares outstanding (in shares)	2,409,452		2,375,249	2,375,890	[1]	2,375,890	[1]
Beginning of period, Net Assets	$ 2,410		$ 2,375	$ 2,376	[1]	$ 2,376	[1]
Capital Transactions
Shares issued through reinvestment of dividends (in shares)	18,415			21,177
Shares issued through reinvestment of distributions	$ 18			$ 21
Repurchase of common shares (in shares)	(19,963)			(21,818)
Repurchase of common shares	$ (20)			$ (22)
Total Increase (Decrease) (in shares)	(1,548)			(641)
Total Increase (Decrease) during period	$ (2)			$ (1)
Ending balance, Common stock, shares outstanding (in shares)	2,407,904	2,409,452		2,375,249		2,409,452
End of period, Net Assets	$ 2,408	$ 2,410		$ 2,375		$ 2,410
Paid-in Capital in Excess of Par
Investment Company, Net Assets [Roll Forward]
Beginning of period, Net Assets	24,924,606		25,097,836	25,188,341	[1]	25,188,341	[1]
Distributions to Shareholders (Note 5)
Return of capital distributions	(255,054)			(91,282)
Capital Transactions
Shares issued through reinvestment of distributions	111,987			153,260
Repurchase of common shares	(121,549)			(152,483)
Total Increase (Decrease) during period	(264,616)			(90,505)
End of period, Net Assets	24,659,990	24,924,606		25,097,836		24,924,606
Distributable Earnings (Loss)
Investment Company, Net Assets [Roll Forward]
Beginning of period, Net Assets	(10,233,154)		$ (9,254,763)	(8,489,742)	[1]	(8,489,742)	[1]
Net Decrease in Net Assets and Temporary Equity Resulting from Operations:
Net investment (loss)	(222,368)			71,626
Net realized (losses) on investments	(215,195)
Net realized (losses) on extinguishment of debt	(66,844)
Net change in unrealized losses on investments	(818,013)			(588,941)
Distributions to Shareholders (Note 5)
Distributions from earnings				(247,706)
Capital Transactions
Total Increase (Decrease) during period	(1,322,420)			(765,021)
End of period, Net Assets	$ (11,555,574)	$ (10,233,154)		$ (9,254,763)		$ (10,233,154)

[1] Certain reclassifications have been made in the presentation of prior year and prior quarter amounts to conform to the presentation for the current fiscal year. In addition, we have not yet finalized return of capital estimates for the current period. See Note 2 and 6 within the accompanying notes to the consolidated financial statements for further discussion.

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net decrease in net assets resulting from operations	$ (1,322,420)	$ (517,315)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Amortization of offering costs	0	8,513
Repayments and sales of portfolio investments	3,641,054	1,358,587
Net change in unrealized losses on investments	818,013	588,941
Net realized losses on investments	215,195	0
Net realized losses on extinguishment of debt	66,844	0
Amortization of premiums (accretion of purchase discounts) on investments, net	172,213	45,602
Amortization of deferred financing costs	170,443	14,818
Payment-in-kind interest	(21,994)	(162)
Settlement of Treasury Bills	(13)	0
(Increase) Decrease in operating assets
Receivable for investments sold	200,655	0
Receivable for repayments of portfolio investments	7,554	28,918
Interest receivable	28,442	73,932
Deferred offering costs (Note 5)	0	(8,513)
Prepaid expenses and other assets	32,190	6,326
Increase (Decrease) in operating liabilities
Payable for open trades	(3,771)	0
Accrued expenses	2,547	17,048
Accrued legal fees	105,254	(58,476)
Accrued audit fees	(63,634)	18,433
Due to Administrator (Note 5)	218,750	40,517
Interest payable	(68,597)	20,904
Tax payable	0	(4,935)
Net cash provided by operating activities	4,198,725	1,633,138
Cash flows from financing activities:
Distributions paid to stockholders	(142,633)	(174,441)
Repurchase of common shares	(121,569)	(152,505)
Borrowings under Senior Secured Revolving Credit Facility (Note 10)	6,200,000	0
Repayments under Revolving Credit Facility (Note 10)	(8,600,000)	(500,000)
Financing costs paid and deferred	(884,762)	0
Net cash used in financing activities	(3,548,964)	(826,946)
Net increase in cash, cash equivalents and restricted cash	649,761	806,192
Cash, cash equivalents and restricted cash at beginning of period	5,792,556	1,467,568	$ 1,467,568
Cash, cash equivalents and restricted cash at end of period	6,442,317	2,273,760	5,792,556
Supplemental disclosures:
Cash paid for interest	188,366	233,536
Non-cash financing activities:
Value of shares issued through reinvestment of distributions	112,005	153,281
Unpaid deferred offering costs (Note 5)	(129,153)	0
Cash and cash equivalents	6,442,317	2,273,760	5,730,723	$ 1,467,568
Restricted cash	0	0	61,833	0
Cash, cash equivalents and restricted cash at beginning of period	$ 6,442,317	$ 2,273,760	$ 5,792,556	$ 1,467,568

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CONSOLIDATED SCHEDULES OF INVESTMENTS - USD ($)		Sep. 30, 2023		Jun. 30, 2023		Jun. 30, 2022
Schedule of Investments [Line Items]
Amortized Cost		$ 21,385,175	[1]	$ 25,391,631
Fair Value		$ 17,090,718	[2]	$ 21,915,187
% of Net Assets		130.40%		149.14%
Senior Secured Loans-First Lien
Schedule of Investments [Line Items]
Amortized Cost		$ 11,590,740	[1],[3],[4],[5]	$ 16,445,667	[6],[7],[8]
Fair Value		$ 10,768,957	[2],[3],[4],[5]	$ 15,362,386	[7],[8],[9]
% of Net Assets		82.16%	[3],[4],[5]	104.55%	[7],[8]
Senior Secured Loans-Second Lien
Schedule of Investments [Line Items]
Amortized Cost		$ 1,777,299	[1],[3],[4],[5],[10],[11]	$ 1,758,303	[6],[7],[8],[12],[13],[14]
Fair Value		$ 1,378,000	[2],[3],[4],[5],[10],[11]	$ 1,416,049	[7],[8],[9],[12],[13],[14]
% of Net Assets		10.51%	[3],[4],[5],[10],[11]	9.64%	[7],[8],[12],[13],[14]
Senior Secured Notes
Schedule of Investments [Line Items]
Amortized Cost		$ 752,749	[1],[3],[5],[10],[15]	$ 752,867	[6],[12],[16]
Fair Value		$ 290,152	[2],[3],[5],[10],[15]	$ 271,899	[9],[12],[16]
% of Net Assets		2.21%	[3],[5],[10],[15]	1.85%	[12],[16]
Subordinate Structured Notes
Schedule of Investments [Line Items]
Amortized Cost		$ 5,596,444	[1],[3],[5],[10],[15],[17]	$ 5,764,411	[8],[12],[16],[18]
Fair Value		$ 4,033,290	[2],[3],[5],[10],[15],[17]	$ 4,386,757	[8],[12],[16],[18]
% of Net Assets		30.79%	[3],[5],[10],[15],[17]	29.85%	[8],[12],[16],[18]
Equity/Other
Schedule of Investments [Line Items]
Amortized Cost		$ 1,667,943	[1],[3],[5],[10],[15],[19]	$ 670,383	[8],[12],[16],[20]
Fair Value		$ 620,319	[2],[3],[5],[10],[15],[19]	$ 478,096	[8],[12],[16],[20]
% of Net Assets		4.73%	[3],[5],[10],[15],[19]	3.25%	[8],[12],[16],[20]
Investment, Identifier [Axis]: Equity, Other - ACON IWP Investors I, L.L.C.
Schedule of Investments [Line Items]
Principal Value		$ 472,357	[3],[5],[10],[15],[19]	$ 472,357	[8],[12],[16],[20]
Amortized Cost		472,357	[1],[3],[5],[10],[15],[19]	472,357	[8],[12],[16],[20]
Fair Value		$ 568,500	[2],[3],[5],[10],[15],[19]	$ 465,000	[8],[12],[16],[20]
% of Net Assets		4.34%	[3],[5],[10],[15],[19]	3.16%	[8],[12],[16],[20]
Investment, Identifier [Axis]: Equity, Other - FullBeauty Brands Holding, Common Stock
Schedule of Investments [Line Items]
Principal Value		$ 72	[3],[5],[10],[15],[19]	$ 72	[8],[12],[16],[20]
Amortized Cost		198,026	[1],[3],[5],[10],[15],[19]	198,026	[8],[12],[16],[20]
Fair Value		$ 9,519	[2],[3],[5],[10],[15],[19]	$ 13,096	[8],[12],[16],[20]
% of Net Assets		0.07%	[3],[5],[10],[15],[19]	0.09%	[8],[12],[16],[20]
Investment, Identifier [Axis]: Equity, Other - Rising Tide Holdings, Inc., Common Stock
Schedule of Investments [Line Items]
Principal Value	[3],[5],[10],[15],[19]	$ 2,500
Amortized Cost	[1],[3],[5],[10],[15],[19]	997,560
Fair Value	[2],[3],[5],[10],[15],[19]	$ 42,300
% of Net Assets	[3],[5],[10],[15],[19]	0.32%
Investment, Identifier [Axis]: Placeholder
Schedule of Investments [Line Items]
Fair Value		$ 0		$ 0		$ 0
Investment, Identifier [Axis]: Rising Tide Holdings, Inc. - First Lien Term Loan
Schedule of Investments [Line Items]
Maximum Current PIK Rate				3.75%
Investment, Identifier [Axis]: Senior Secured Loans, Research Now Group, LLC
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[21]			5.50%
Investment interest rate	[7],[8],[12],[13],[21]			10.80%
Floor	[7],[8],[12],[13]			100.00%
Principal Value	[7],[8],[12],[13]			$ 1,920,012
Amortized Cost	[6],[7],[8],[12],[13]			1,920,012
Fair Value	[7],[8],[9],[12],[13]			$ 1,797,820
% of Net Assets	[7],[8],[12],[13]			12.24%
Investment, Identifier [Axis]: Senior Secured Loans, Viapath Technologies
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[21],[22]			4.25%
Investment interest rate	[7],[8],[12],[13],[21],[22]			9.45%
Floor	[7],[8],[12],[13],[22]			0.00%
Principal Value	[7],[8],[12],[13],[22]			$ 422,120
Amortized Cost	[6],[7],[8],[12],[13],[22]			412,170
Fair Value	[7],[8],[9],[12],[13],[22]			$ 405,431
% of Net Assets	[7],[8],[12],[13],[22]			2.76%
Investment, Identifier [Axis]: Senior Secured Loans, Aventiv Technologies
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[21],[22]			4.50%
Investment interest rate	[7],[8],[12],[13],[21],[22]			10.23%
Floor	[7],[8],[12],[13],[22]			100.00%
Principal Value	[7],[8],[12],[13],[22]			$ 1,918,782
Amortized Cost	[6],[7],[8],[12],[13],[22]			1,871,317
Fair Value	[7],[8],[9],[12],[13],[22]			$ 1,918,782
% of Net Assets	[7],[8],[12],[13],[22]			13.06%
Investment, Identifier [Axis]: Senior Secured Loans, Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)
Schedule of Investments [Line Items]
Basis spread rate	[3],[4],[5],[10],[23],[24]	4.50%
Investment interest rate	[3],[4],[5],[10],[23],[24]	10.23%
Floor	[3],[4],[5],[10],[23]	1.00%
Principal Value	[3],[4],[5],[10],[23]	$ 1,913,706
Amortized Cost	[1],[3],[4],[5],[10],[23]	1,873,189
Fair Value	[2],[3],[4],[5],[10],[23]	$ 1,877,365
% of Net Assets	[3],[4],[5],[10],[23]	14.32%
Investment, Identifier [Axis]: Senior Secured Loans, BCPE North Star US Holdco 2
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[21]			4.00%
Investment interest rate	[7],[8],[12],[13],[21]			9.54%
Floor	[7],[8],[12],[13]			75.00%
Principal Value	[7],[8],[12],[13]			$ 972,470
Amortized Cost	[6],[7],[8],[12],[13]			972,281
Fair Value	[7],[8],[9],[12],[13]			$ 920,151
% of Net Assets	[7],[8],[12],[13]			6.26%
Investment, Identifier [Axis]: Senior Secured Loans, BCPE North Star US Holdco 2, Inc.
Schedule of Investments [Line Items]
Basis spread rate	[3],[4],[5],[10],[24]	4.00%
Investment interest rate	[3],[4],[5],[10],[24]	9.43%
Floor	[3],[4],[5],[10]	1.00%
Principal Value	[3],[4],[5],[10]	$ 969,997
Amortized Cost	[1],[3],[4],[5],[10]	967,059
Fair Value	[2],[3],[4],[5],[10]	$ 938,763
% of Net Assets	[3],[4],[5],[10]	7.15%
Investment, Identifier [Axis]: Senior Secured Loans, CareerBuilder, LLC
Schedule of Investments [Line Items]
Basis spread rate		6.75%	[3],[4],[5],[10],[23],[24]	6.75%	[7],[8],[12],[13],[21],[22]
Investment interest rate		12.51%	[3],[4],[5],[10],[23],[24]	12.51%	[7],[8],[12],[13],[21],[22]
Floor		1.00%	[3],[4],[5],[10],[23]	100.00%	[7],[8],[12],[13],[22]
Principal Value		$ 725,238	[3],[4],[5],[10],[23]	$ 725,238	[7],[8],[12],[13],[22]
Amortized Cost		721,772	[1],[3],[4],[5],[10],[23]	723,343	[6],[7],[8],[12],[13],[22]
Fair Value		$ 331,071	[2],[3],[4],[5],[10],[23]	$ 499,544	[7],[8],[9],[12],[13],[22]
% of Net Assets		2.53%	[3],[4],[5],[10],[23]	3.40%	[7],[8],[12],[13],[22]
Investment, Identifier [Axis]: Senior Secured Loans, DRI Holding Inc
Schedule of Investments [Line Items]
Basis spread rate		5.25%	[3],[4],[5],[10],[24]	5.25%	[7],[8],[12],[13],[21]
Investment interest rate		10.67%	[3],[4],[5],[10],[24]	10.45%	[7],[8],[12],[13],[21]
Floor		1.00%	[3],[4],[5],[10]	50.00%	[7],[8],[12],[13]
Principal Value		$ 975,051	[3],[4],[5],[10]	$ 977,525	[7],[8],[12],[13]
Amortized Cost		972,914	[1],[3],[4],[5],[10]	977,525	[6],[7],[8],[12],[13]
Fair Value		$ 975,050	[2],[3],[4],[5],[10]	$ 971,690	[7],[8],[9],[12],[13]
% of Net Assets		7.44%	[3],[4],[5],[10]	6.61%	[7],[8],[12],[13]
Investment, Identifier [Axis]: Senior Secured Loans, DTI Holdco, Inc.
Schedule of Investments [Line Items]
Basis spread rate		4.75%	[3],[4],[5],[10],[24]	4.75%	[7],[8],[12],[13],[21]
Investment interest rate		10.12%	[3],[4],[5],[10],[24]	9.80%	[7],[8],[12],[13],[21]
Floor		1.00%	[3],[4],[5],[10]	75.00%	[7],[8],[12],[13]
Principal Value		$ 738,769	[3],[4],[5],[10]	$ 740,634	[7],[8],[12],[13]
Amortized Cost		724,701	[1],[3],[4],[5],[10]	727,834	[6],[7],[8],[12],[13]
Fair Value		$ 738,769	[2],[3],[4],[5],[10]	$ 710,099	[7],[8],[9],[12],[13]
% of Net Assets		5.64%	[3],[4],[5],[10]	4.83%	[7],[8],[12],[13]
Investment, Identifier [Axis]: Senior Secured Loans, First Brands Group
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[21]			5.00%
Investment interest rate	[7],[8],[12],[13],[21]			10.25%
Floor	[7],[8],[12],[13]			100.00%
Principal Value	[7],[8],[12],[13]			$ 473,788
Amortized Cost	[6],[7],[8],[12],[13]			470,727
Fair Value	[7],[8],[9],[12],[13]			$ 470,696
% of Net Assets	[7],[8],[12],[13]			3.20%
Investment, Identifier [Axis]: Senior Secured Loans, PetVet Care Centers, LLC
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[13],[21],[25]			3.50%
Investment interest rate	[7],[8],[13],[21],[25]			8.69%
Floor	[7],[8],[13],[25]			75.00%
Principal Value	[7],[8],[13],[25]			$ 475,805
Amortized Cost	[6],[7],[8],[13],[25]			475,174
Fair Value	[7],[8],[9],[13],[25]			$ 467,003
% of Net Assets	[7],[8],[13],[25]			3.18%
Investment, Identifier [Axis]: Senior Secured Loans, RC Buyer, Inc
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[21]			3.50%
Investment interest rate	[7],[8],[12],[13],[21]			9.00%
Floor	[7],[8],[12],[13]			75.00%
Principal Value	[7],[8],[12],[13]			$ 705,000
Amortized Cost	[6],[7],[8],[12],[13]			703,653
Fair Value	[7],[8],[9],[12],[13]			$ 678,492
% of Net Assets	[7],[8],[12],[13]			4.62%
Investment, Identifier [Axis]: Senior Secured Loans, Research Now Group and Dynata LLC
Schedule of Investments [Line Items]
Basis spread rate	[3],[4],[5],[10],[24]	5.50%
Investment interest rate	[3],[4],[5],[10],[24]	11.13%
Floor	[3],[4],[5],[10]	1.00%
Principal Value	[3],[4],[5],[10]	$ 1,914,932
Amortized Cost	[1],[3],[4],[5],[10]	1,914,045
Fair Value	[2],[3],[4],[5],[10]	$ 1,642,677
% of Net Assets	[3],[4],[5],[10]	12.53%
Investment, Identifier [Axis]: Senior Secured Loans, Rising Tide Holdings, Inc.
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[14],[21]			1.00%
Investment interest rate	[7],[8],[12],[13],[14],[21]			10.26%
Floor	[7],[8],[12],[13],[14]			75.00%
Principal Value	[7],[8],[12],[13],[14]			$ 1,004,619
Amortized Cost	[6],[7],[8],[12],[13],[14]			997,560
Fair Value	[7],[8],[9],[12],[13],[14]			$ 669,880
% of Net Assets	[7],[8],[12],[13],[14]			4.56%
Investment, Identifier [Axis]: Senior Secured Loans, Sorenson Communications, LLC
Schedule of Investments [Line Items]
Basis spread rate		5.50%	[3],[4],[5],[10],[24]	5.50%	[7],[8],[12],[13],[21]
Investment interest rate		10.93%	[3],[4],[5],[10],[24]	10.69%	[7],[8],[12],[13],[21]
Floor		1.00%	[3],[4],[5],[10]	75.00%	[7],[8],[12],[13]
Principal Value		$ 1,029,405	[3],[4],[5],[10]	$ 1,063,719	[7],[8],[12],[13]
Amortized Cost		1,021,364	[1],[3],[4],[5],[10]	1,055,986	[6],[7],[8],[12],[13]
Fair Value		$ 1,029,405	[2],[3],[4],[5],[10]	$ 1,062,278	[7],[8],[9],[12],[13]
% of Net Assets		7.85%	[3],[4],[5],[10]	7.23%	[7],[8],[12],[13]
Investment, Identifier [Axis]: Senior Secured Loans, Staples, Inc.
Schedule of Investments [Line Items]
Basis spread rate		5.00%	[3],[4],[5],[23],[24],[26]	5.00%	[7],[8],[13],[21],[22],[25]
Investment interest rate		10.63%	[3],[4],[5],[23],[24],[26]	10.30%	[7],[8],[13],[21],[22],[25]
Floor		0.00%	[3],[4],[5],[23],[26]	0.00%	[7],[8],[13],[22],[25]
Principal Value		$ 999,623	[3],[4],[5],[23],[26]	$ 1,929,648	[7],[8],[13],[22],[25]
Amortized Cost		993,251	[1],[3],[4],[5],[23],[26]	1,917,882	[6],[7],[8],[13],[22],[25]
Fair Value		$ 865,844	[2],[3],[4],[5],[23],[26]	$ 1,662,469	[7],[8],[9],[13],[22],[25]
% of Net Assets		6.61%	[3],[4],[5],[23],[26]	11.31%	[7],[8],[13],[22],[25]
Investment, Identifier [Axis]: Senior Secured Loans, Upstream Newco, Inc.
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[21]			4.25%
Investment interest rate	[7],[8],[12],[13],[21]			9.75%
Floor	[7],[8],[12],[13]			0.00%
Principal Value	[7],[8],[12],[13]			$ 1,225,000
Amortized Cost	[6],[7],[8],[12],[13]			1,225,000
Fair Value	[7],[8],[9],[12],[13]			$ 1,179,920
% of Net Assets	[7],[8],[12],[13]			8.03%
Investment, Identifier [Axis]: Senior Secured Loans, ViaPath Technologies
Schedule of Investments [Line Items]
Basis spread rate	[3],[4],[5],[10],[23],[24]	4.25%
Investment interest rate	[3],[4],[5],[10],[23],[24]	9.77%
Floor	[3],[4],[5],[10],[23]	0.00%
Principal Value	[3],[4],[5],[10],[23]	$ 421,015
Amortized Cost	[1],[3],[4],[5],[10],[23]	411,652
Fair Value	[2],[3],[4],[5],[10],[23]	$ 409,851
% of Net Assets	[3],[4],[5],[10],[23]	3.13%
Investment, Identifier [Axis]: Senior Secured Loans, Wellpath Holdings, Inc.
Schedule of Investments [Line Items]
Basis spread rate		5.50%	[3],[4],[5],[10],[23],[24]	5.50%	[7],[8],[12],[13],[21],[22]
Investment interest rate		11.18%	[3],[4],[5],[10],[23],[24]	10.98%	[7],[8],[12],[13],[21],[22]
Floor		0.00%	[3],[4],[5],[10],[23]	0.00%	[7],[8],[12],[13],[22]
Principal Value		$ 2,007,303	[3],[4],[5],[10],[23]	$ 2,012,571	[7],[8],[12],[13],[22]
Amortized Cost		1,990,793	[1],[3],[4],[5],[10],[23]	1,995,203	[6],[7],[8],[12],[13],[22]
Fair Value		$ 1,960,162	[2],[3],[4],[5],[10],[23]	$ 1,948,131	[7],[8],[9],[12],[13],[22]
% of Net Assets		14.96%	[3],[4],[5],[10],[23]	13.26%	[7],[8],[12],[13],[22]
Investment, Identifier [Axis]: Senior Secured Loans-Second Lien, Shutterfly Finance
Schedule of Investments [Line Items]
Basis spread rate	[3],[4],[5],[10],[11],[24]	1.00%
Investment interest rate	[3],[4],[5],[10],[11],[24]	6.39%
Maximum Current PIK Rate	[3],[4],[5],[10],[11],[24]	4.00%
Floor	[3],[4],[5],[10],[11]	100.00%
Principal Value	[3],[4],[5],[10],[11]	$ 1,785,994
Amortized Cost	[1],[3],[4],[5],[10],[11]					$ 1,777,299
Fair Value	[2],[3],[4],[5],[10],[11]	$ 1,378,000
% of Net Assets	[3],[4],[5],[10],[11]	10.51%
Investment, Identifier [Axis]: Senior Secured Loans-Second Lien, Shutterfly Finance, LLC
Schedule of Investments [Line Items]
Basis spread rate	[7],[8],[12],[13],[14],[21]			5.00%
Investment interest rate	[7],[8],[12],[13],[14],[21]			10.24%
Maximum Current PIK Rate	[7],[8],[12],[13],[14],[21]
Floor	[7],[8],[12],[13],[14]			100.00%
Principal Value	[7],[8],[12],[13],[14]			$ 1,764,000
Amortized Cost	[6],[7],[8],[12],[13],[14]			1,758,303
Fair Value	[7],[8],[9],[12],[13],[14]			$ 1,416,049
% of Net Assets	[7],[8],[12],[13],[14]			9.64%
Investment, Identifier [Axis]: Senior Secured Notes, CURO Group Holdings Corp.
Schedule of Investments [Line Items]
Investment interest rate		7.50%	[3],[5],[10],[15],[24]	7.50%	[12],[16],[21]
Principal Value		$ 750,000	[3],[5],[10],[15]	$ 750,000	[12],[16]
Amortized Cost		752,749	[1],[3],[5],[10],[15]	752,867	[6],[12],[16]
Fair Value		$ 290,152	[2],[3],[5],[10],[15]	$ 271,899	[9],[12],[16]
% of Net Assets		2.21%	[3],[5],[10],[15]	1.85%	[12],[16]
Investment, Identifier [Axis]: Shutterfly Finance, LLC - Second Lien Term Loan
Schedule of Investments [Line Items]
Maximum Current PIK Rate		4.00%		4.00%
Investment, Identifier [Axis]: Structured Subordinated Notes, Apidos CLO XXIV
Schedule of Investments [Line Items]
Investment interest rate		25.77%	[3],[5],[10],[15],[24]	26.91%	[8],[12],[16],[18],[21]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		165,284	[1],[3],[5],[10],[15]	166,533	[6],[8],[12],[16],[18]
Fair Value		$ 159,726	[2],[3],[5],[10],[15]	$ 163,123	[8],[9],[12],[16],[18]
% of Net Assets		1.22%	[3],[5],[10],[15]	1.11%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Apidos CLO XXVI
Schedule of Investments [Line Items]
Investment interest rate		7.49%	[3],[5],[10],[15],[24]	12.85%	[8],[12],[16],[18],[21]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		182,819	[1],[3],[5],[10],[15]	188,599	[6],[8],[12],[16],[18]
Fair Value		$ 146,591	[2],[3],[5],[10],[15]	$ 164,613	[8],[9],[12],[16],[18]
% of Net Assets		1.12%	[3],[5],[10],[15]	1.12%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, California CLO IX, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		18.54%	[3],[5],[10],[15],[24]	24.51%	[8],[12],[16],[18],[21]
Principal Value		$ 500,000	[3],[5],[10],[15]	$ 500,000	[8],[12],[16],[18]
Amortized Cost		260,592	[1],[3],[5],[10],[15]	265,278	[6],[8],[12],[16],[18]
Fair Value		$ 214,411	[2],[3],[5],[10],[15]	$ 240,926	[8],[9],[12],[16],[18]
% of Net Assets		1.64%	[3],[5],[10],[15]	1.64%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Carlyle Global Market Strategies CLO 2014-4-R, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		9.54%	[3],[5],[10],[15],[24]	13.21%	[8],[12],[16],[18],[21]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		170,675	[1],[3],[5],[10],[15]	174,426	[6],[8],[12],[16],[18]
Fair Value		$ 144,074	[2],[3],[5],[10],[15]	$ 154,469	[8],[9],[12],[16],[18]
% of Net Assets		1.10%	[3],[5],[10],[15]	1.05%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Carlyle Global Market Strategies CLO 2017-5, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		4.68%	[3],[5],[10],[15],[24]	5.14%	[8],[12],[16],[18],[21]
Principal Value		$ 500,000	[3],[5],[10],[15]	$ 500,000	[8],[12],[16],[18]
Amortized Cost		409,802	[1],[3],[5],[10],[15]	422,204	[6],[8],[12],[16],[18]
Fair Value		$ 309,080	[2],[3],[5],[10],[15]	$ 319,644	[8],[9],[12],[16],[18]
% of Net Assets		2.36%	[3],[5],[10],[15]	2.18%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Galaxy XIX CLO, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		7.80%	[3],[5],[10],[15],[24]	12.16%	[8],[12],[16],[18],[21]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		168,968	[1],[3],[5],[10],[15]	174,231	[6],[8],[12],[16],[18]
Fair Value		$ 119,790	[2],[3],[5],[10],[15]	$ 126,513	[8],[9],[12],[16],[18]
% of Net Assets		0.91%	[3],[5],[10],[15]	0.86%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, GoldenTree Loan Opportunities IX, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[3],[5],[10],[15],[24],[27]	0.00%	[8],[12],[16],[18],[21]
Principal Value		$ 250,000	[3],[5],[10],[15],[27]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		160,909	[1],[3],[5],[10],[15],[27]	167,080	[6],[8],[12],[16],[18]
Fair Value		$ 100,078	[2],[3],[5],[10],[15],[27]	$ 116,952	[8],[9],[12],[16],[18]
% of Net Assets		0.76%	[3],[5],[10],[15],[27]	0.80%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Madison Park Funding XIII, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		1.59%	[3],[5],[10],[15],[24]	0.00%	[8],[12],[16],[18],[21],[28]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18],[28]
Amortized Cost		126,831	[1],[3],[5],[10],[15]	133,019	[6],[8],[12],[16],[18],[28]
Fair Value		$ 96,801	[2],[3],[5],[10],[15]	$ 110,817	[8],[9],[12],[16],[18],[28]
% of Net Assets		0.74%	[3],[5],[10],[15]	0.75%	[8],[12],[16],[18],[28]
Investment, Identifier [Axis]: Structured Subordinated Notes, Madison Park Funding XIV, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		15.81%	[3],[5],[10],[15],[24]	19.33%	[8],[12],[16],[18],[21]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		185,448	[1],[3],[5],[10],[15]	189,166	[6],[8],[12],[16],[18]
Fair Value		$ 147,832	[2],[3],[5],[10],[15]	$ 152,446	[8],[9],[12],[16],[18]
% of Net Assets		1.13%	[3],[5],[10],[15]	1.04%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, OZLM XII, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[3],[5],[10],[15],[17],[24],[27]	0.00%	[8],[12],[16],[18],[28]
Principal Value		$ 275,000	[3],[5],[10],[15],[17],[27]	$ 275,000	[8],[12],[16],[18],[28]
Amortized Cost		147,500	[1],[3],[5],[10],[15],[17],[27]	147,499	[8],[12],[16],[18],[28]
Fair Value		$ 0	[2],[3],[5],[10],[15],[17],[27]	$ 0	[8],[12],[16],[18],[28]
% of Net Assets		0.00%	[3],[5],[10],[15],[17],[27]	0.00%	[8],[12],[16],[18],[28]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 30, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		4.15%	[3],[5],[10],[15],[24]	3.12%	[8],[12],[16],[18]
Principal Value		$ 475,000	[3],[5],[10],[15]	$ 475,000	[8],[12],[16],[18]
Amortized Cost		337,621	[1],[3],[5],[10],[15]	354,696	[8],[12],[16],[18]
Fair Value		$ 264,251	[2],[3],[5],[10],[15]	$ 284,479	[8],[12],[16],[18]
% of Net Assets		2.02%	[3],[5],[10],[15]	1.94%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 31, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		10.29%	[3],[5],[10],[15],[24]	13.52%	[8],[12],[16],[18]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		142,459	[1],[3],[5],[10],[15]	148,955	[8],[12],[16],[18]
Fair Value		$ 123,450	[2],[3],[5],[10],[15]	$ 138,013	[8],[12],[16],[18]
% of Net Assets		0.94%	[3],[5],[10],[15]	0.94%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 36, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		17.27%	[3],[5],[10],[15],[24]	19.80%	[8],[12],[16],[18]
Principal Value		$ 500,000	[3],[5],[10],[15]	$ 500,000	[8],[12],[16],[18]
Amortized Cost		372,855	[1],[3],[5],[10],[15]	380,983	[8],[12],[16],[18]
Fair Value		$ 304,798	[2],[3],[5],[10],[15]	$ 320,718	[8],[12],[16],[18]
% of Net Assets		2.33%	[3],[5],[10],[15]	2.18%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 39, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		21.09%	[3],[5],[10],[15],[24]	22.80%	[8],[12],[16],[18]
Principal Value		$ 250,000	[3],[5],[10],[15]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		204,167	[1],[3],[5],[10],[15]	204,843	[8],[12],[16],[18]
Fair Value		$ 192,074	[2],[3],[5],[10],[15]	$ 196,987	[8],[12],[16],[18]
% of Net Assets		1.47%	[3],[5],[10],[15]	1.34%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XIV, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[3],[5],[10],[15],[24],[27]	0.00%	[8],[12],[16],[18],[21],[28]
Principal Value		$ 850,000	[3],[5],[10],[15],[27]	$ 850,000	[8],[12],[16],[18],[28]
Amortized Cost		388,254	[1],[3],[5],[10],[15],[27]	401,984	[6],[8],[12],[16],[18],[28]
Fair Value		$ 170,442	[2],[3],[5],[10],[15],[27]	$ 231,504	[8],[9],[12],[16],[18],[28]
% of Net Assets		1.30%	[3],[5],[10],[15],[27]	1.58%	[8],[12],[16],[18],[28]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XV, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		9.83%	[3],[5],[10],[15],[24]	11.77%	[8],[12],[16],[18]
Principal Value		$ 500,000	[3],[5],[10],[15]	$ 500,000	[8],[12],[16],[18]
Amortized Cost		275,894	[1],[3],[5],[10],[15]	283,882	[8],[12],[16],[18]
Fair Value		$ 229,582	[2],[3],[5],[10],[15]	$ 244,193	[8],[12],[16],[18]
% of Net Assets		1.75%	[3],[5],[10],[15]	1.66%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XXI,Ltd.
Schedule of Investments [Line Items]
Investment interest rate		16.39%	[3],[5],[10],[15],[23],[24]	18.87%	[8],[12],[16],[18],[22]
Principal Value		$ 387,538	[3],[5],[10],[15],[23]	$ 387,538	[8],[12],[16],[18],[22]
Amortized Cost		239,496	[1],[3],[5],[10],[15],[23]	241,912	[8],[12],[16],[18],[22]
Fair Value		$ 182,209	[2],[3],[5],[10],[15],[23]	$ 188,503	[8],[12],[16],[18],[22]
% of Net Assets		1.39%	[3],[5],[10],[15],[23]	1.28%	[8],[12],[16],[18],[22]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO II, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[3],[5],[10],[15],[17],[24],[27]	0.00%	[8],[12],[16],[18],[28]
Principal Value		$ 1,500,000	[3],[5],[10],[15],[17],[27]	$ 1,500,000	[8],[12],[16],[18],[28]
Amortized Cost		658,336	[1],[3],[5],[10],[15],[17],[27]	697,068	[8],[12],[16],[18],[28]
Fair Value		$ 390,028	[2],[3],[5],[10],[15],[17],[27]	$ 456,140	[8],[12],[16],[18],[28]
% of Net Assets		2.98%	[3],[5],[10],[15],[17],[27]	3.10%	[8],[12],[16],[18],[28]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO VII-R, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		18.09%	[3],[5],[10],[15],[17],[24]	15.65%	[8],[12],[16],[18]
Principal Value		$ 150,000	[3],[5],[10],[15],[17]	$ 150,000	[8],[12],[16],[18]
Amortized Cost		62,953	[1],[3],[5],[10],[15],[17]	61,100	[8],[12],[16],[18]
Fair Value		$ 50,906	[2],[3],[5],[10],[15],[17]	$ 45,533	[8],[12],[16],[18]
% of Net Assets		0.39%	[3],[5],[10],[15],[17]	0.31%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO XVIII, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		2.35%	[3],[5],[10],[15],[17],[24]	3.39%	[8],[12],[16],[18]
Principal Value		$ 250,000	[3],[5],[10],[15],[17]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		180,377	[1],[3],[5],[10],[15],[17]	190,013	[8],[12],[16],[18]
Fair Value		$ 131,432	[2],[3],[5],[10],[15],[17]	$ 144,187	[8],[12],[16],[18]
% of Net Assets		1.00%	[3],[5],[10],[15],[17]	0.98%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, THL Credit Wind River 2013-1 CLO, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[3],[5],[10],[15],[17],[24]	0.00%	[8],[12],[16],[18],[28]
Principal Value		$ 325,000	[3],[5],[10],[15],[17]	$ 325,000	[8],[12],[16],[18],[28]
Amortized Cost		199,070	[1],[3],[5],[10],[15],[17]	199,070	[8],[12],[16],[18],[28]
Fair Value		$ 99,625	[2],[3],[5],[10],[15],[17]	$ 103,140	[8],[12],[16],[18],[28]
% of Net Assets		0.76%	[3],[5],[10],[15],[17]	0.70%	[8],[12],[16],[18],[28]
Investment, Identifier [Axis]: Structured Subordinated Notes, Venture XXXIV CLO, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		16.19%	[3],[5],[10],[15],[17],[24]	19.40%	[8],[12],[16],[18]
Principal Value		$ 250,000	[3],[5],[10],[15],[17]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		215,422	[1],[3],[5],[10],[15],[17]	217,261	[8],[12],[16],[18]
Fair Value		$ 184,932	[2],[3],[5],[10],[15],[17]	$ 196,420	[8],[12],[16],[18]
% of Net Assets		1.41%	[3],[5],[10],[15],[17]	1.34%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Voya CLO 2016-1, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		7.69%	[3],[5],[10],[15],[17],[24]	10.97%	[8],[12],[16],[18]
Principal Value		$ 250,000	[3],[5],[10],[15],[17]	$ 250,000	[8],[12],[16],[18]
Amortized Cost		182,996	[1],[3],[5],[10],[15],[17]	190,279	[8],[12],[16],[18]
Fair Value		$ 152,343	[2],[3],[5],[10],[15],[17]	$ 165,765	[8],[12],[16],[18]
% of Net Assets		1.16%	[3],[5],[10],[15],[17]	1.13%	[8],[12],[16],[18]
Investment, Identifier [Axis]: Structured Subordinated Notes, Voya IM CLO 2013-1, Ltd
Schedule of Investments [Line Items]
Investment interest rate		1.22%	[3],[5],[10],[15],[17],[23],[24]	0.49%	[8],[12],[16],[18],[22]
Principal Value		$ 278,312	[3],[5],[10],[15],[17],[23]	$ 278,312	[8],[12],[16],[18],[22]
Amortized Cost		157,716	[1],[3],[5],[10],[15],[17],[23]	164,330	[8],[12],[16],[18],[22]
Fair Value		$ 118,835	[2],[3],[5],[10],[15],[17],[23]	$ 121,672	[8],[12],[16],[18],[22]
% of Net Assets		0.91%	[3],[5],[10],[15],[17],[23]	0.83%	[8],[12],[16],[18],[22]

[1] See Note 6 for a discussion of the tax cost of the portfolio.

[2] Fair value is determined by the Company’s Board of Directors (see Note 2).

[3] Security is held by the Company and is pledged as collateral for the Senior Secured Revolving Credit Facility (see Note 10). The fair value of the investments used as collateral by the Company for the Senior Secured Revolving Credit Facility at September 30, 2023 was $17,090,718, representing 100% of our total investments.

[4] Syndicated investments which were originated by a financial institution and broadly distributed.

[5] The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

[6] See Note 6 for a discussion of the tax cost of the portfolio.

[7] Syndicated investments which were originated by a financial institution and broadly distributed.

[8] The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

[9] Fair value is determined by the Company’s Board of Directors (see Note 2).

[10] Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 2 and 8 within the accompanying notes to the consolidated financial statements.

[11] The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the three months ended September 30, 2023: Security NamePIK Rate - CapitalizedPIK Rate - Paid as cashMaximum Current PIK RateShutterfly Finance, LLC - Second Lien Term Loan4.00 %— %4.00 %

[12] Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 3 and 9 within the accompanying notes to the consolidated financial statements.

[13] Security is held by Prospect Flexible Funding, LLC, our SPV, and is pledged as collateral for the Credit Facility and such security is not available as collateral to our general creditors (see Note 10). The fair values of the investments held by the SPV at June 30, 2023 was $16,278,891 representing 74% of our total investments.

[14] The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option of the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the year ended June 30, 2023: Security NamePIK Rate - CapitalizedPIK Rate - Paid as cashMaximum Current PIK RateRising Tide Holdings, Inc. - First Lien Term Loan3.75 %— %3.75 %Shutterfly Finance, LLC - Second Lien Term Loan— %4.00 %4.00 %

[15] ndicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of September 30, 2023, 19% are non-qualifying assets as a percentage of total assets.

[16] Indicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of June 30, 2023, 17% are non-qualifying assets as a percentage of total assets.

[17] The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

[18] The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

[19] Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

[20] Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

[21] The majority of the investments bear interest at a rate that may be determined by reference to either London Interbank Offered Rate ("LIBOR" or "L") or Secured Overnight Financing Rate ("SOFR") which resets monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR or the prime lending rate ("Prime") and the current contractual interest rate in effect at June 30, 2023. Certain investments are subject to a LIBOR, SOFR or Prime interest rate floor. The one-month ("1ML"), three-month ("3ML"), and six-month ("6ML") LIBOR rates are based on the applicable LIBOR rate for each investment on its reset date. The one-month ("1M SOFR") and three-month ("3M SOFR") SOFR rates are based on the applicable SOFR rate for each investment on its reset date.

[22] Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments): Portfolio CompanyInvestmentFollow-On Acquisition DatesFollow-On Acquisitions (Excluding initial investment cost)Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)Senior Secured Loans-First Lien8/2/2019908,750 Octagon Investment Partners XXI, Ltd.Structured Subordinated Notes2/14/201935,015 Staples, Inc.Senior Secured Loans-First Lien2/3/2020980,031 ViaPath Technologies (f/k/a Global Tel*Link Corporation) Senior Secured Loans-First Lien7/9/2019, 7/16/20191,436,250 Voya IM CLO 2013-1, Ltd.Structured Subordinated Notes10/17/2017, 7/1/201920,584 Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)Senior Secured Loans-First Lien4/10/2019, 7/25/20191,327,000 

[23] Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments): Portfolio CompanyInvestmentFollow-On Acquisition DatesFollow-On Acquisitions (Excluding initial investment cost)Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)Senior Secured Loans-First Lien8/2/2019$908,750 CareerBuilder, LLCSenior Secured Loans-First Lien6/5/2020690,000 Octagon Investment Partners XXI, Ltd.Structured Subordinated Notes2/14/201935,015 Staples, Inc.Senior Secured Loans-First Lien2/3/2020980,031 ViaPath Technologies (f/k/a Global Tel*Link Corporation) Senior Secured Loans-First Lien7/9/2019, 7/16/20191,436,250 Voya IM CLO 2013-1, Ltd.Structured Subordinated Notes10/17/2017, 7/1/201920,584 Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)Senior Secured Loans-First Lien4/10/2019, 7/25/20191,327,000 

[24] The majority of the investments bear interest at a rate that may be determined by reference to either London Interbank Offered Rate ("LIBOR" or "L") or Secured Overnight Financing Rate ("SOFR") which resets monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR or the prime lending rate ("Prime") and the current contractual interest rate in effect at September 30, 2023. Certain investments are subject to a LIBOR, SOFR or Prime interest rate floor. The one-month ("1ML") and three-month ("3ML") LIBOR rates are based on the applicable LIBOR rate for each investment on its reset date. The three-month ("3M SOFR") and six-month ("6M SOFR") SOFR rates are based on the applicable SOFR rate for each investment on its reset date.

[25] Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 3 within the accompanying notes to the consolidated financial statements.

[26] Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 2 within the accompanying notes to the consolidated financial statements.

[27] The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

[28] The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

XML

CONSOLIDATED SCHEDULES OF INVESTMENTS (Parenthetical) - USD ($)											3 Months Ended			4 Months Ended	12 Months Ended			21 Months Ended
		Sep. 30, 2023		Jun. 30, 2023		Jun. 05, 2020	Feb. 03, 2020	Aug. 02, 2019	Jul. 16, 2019	Feb. 14, 2019	Sep. 30, 2023		Sep. 30, 2022	Jul. 25, 2019	Jun. 30, 2023		Jun. 30, 2022	Jul. 02, 2019
Schedule of Investments [Line Items]
Non-qualifying assets as a percentage of total assets		19.00%		17.00%							19.00%				17.00%
Percentage of total assets at fair value		100.00%		100.00%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance											$ 21,915,187
Net unrealized gains (losses)											(818,013)		$ (588,941)
Fair value, ending balance		$ 17,090,718	[1]	$ 21,915,187							17,090,718	[1]			$ 21,915,187
Interest income											545,116		795,513
Net realized gains (losses)											(215,195)		0
Affiliate Investments
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance											0		0		0
Gross Additions (Cost)											0				0
Gross Reductions (Cost)											0				0
Net unrealized gains (losses)											0				0
Fair value, ending balance		0		0							0				0		$ 0
Interest income											0				0
Dividend income											0				0
Other income											0				0
Net realized gains (losses)											0				0
Investment, Identifier [Axis]: Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)
Schedule of Investments [Line Items]
Follow-On Acquisitions (Excluding initial investment cost)								$ 908,750
Investment, Identifier [Axis]: CareerBuilder, LLC
Schedule of Investments [Line Items]
Follow-On Acquisitions (Excluding initial investment cost)						$ 690,000
Investment, Identifier [Axis]: Equity, Other - ACON IWP Investors I, L.L.C.
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[4],[5]										465,000
Fair value, ending balance		568,500	[1],[6],[7],[8],[9],[10]	465,000	[2],[3],[4],[5]						568,500	[1],[6],[7],[8],[9],[10]			465,000	[2],[3],[4],[5]
Investment, Identifier [Axis]: Equity, Other - FullBeauty Brands Holding, Common Stock
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[4],[5]										13,096
Fair value, ending balance		9,519	[1],[6],[7],[8],[9],[10]	13,096	[2],[3],[4],[5]						9,519	[1],[6],[7],[8],[9],[10]			13,096	[2],[3],[4],[5]
Investment, Identifier [Axis]: Equity, Other - Rising Tide Holdings, Inc., Common Stock
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, ending balance	[1],[6],[7],[8],[9],[10]	42,300									42,300
Investment, Identifier [Axis]: Octagon Investment Partners XXI, Ltd.
Schedule of Investments [Line Items]
Follow-On Acquisitions (Excluding initial investment cost)										$ 35,015
Investment, Identifier [Axis]: Placeholder
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance											0		$ 0		0
Gross Additions (Cost)											0				0
Gross Reductions (Cost)											0				0
Net unrealized gains (losses)											0				0
Fair value, ending balance		$ 0		$ 0							0				0		$ 0
Interest income											0				0
Dividend income											0				0
Other income											0				0
Net realized gains (losses)											0				$ 0
Investment, Identifier [Axis]: Rising Tide Holdings, Inc. - First Lien Term Loan
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
PIK Rate - Capitalized				3.75%											3.75%
PIK Rate - Paid as cash				0.00%											0.00%
Maximum Current PIK Rate				3.75%											3.75%
Investment, Identifier [Axis]: Senior Secured Loans, Research Now Group, LLC
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13]			10.80%											10.80%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										1,797,820
Fair value, ending balance	[3],[5],[11],[12],[14]			$ 1,797,820											$ 1,797,820
Investment, Identifier [Axis]: Senior Secured Loans, Viapath Technologies
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13],[15]			9.45%											9.45%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14],[15]										405,431
Fair value, ending balance	[3],[5],[11],[12],[14],[15]			$ 405,431											$ 405,431
Investment, Identifier [Axis]: Senior Secured Loans, Aventiv Technologies
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13],[15]			10.23%											10.23%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14],[15]										$ 1,918,782
Fair value, ending balance	[3],[5],[11],[12],[14],[15]			$ 1,918,782											$ 1,918,782
Investment, Identifier [Axis]: Senior Secured Loans, Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)
Schedule of Investments [Line Items]
Investment interest rate	[6],[8],[9],[16],[17],[18]	10.23%									10.23%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, ending balance	[1],[6],[8],[9],[16],[17]	$ 1,877,365									$ 1,877,365
Investment, Identifier [Axis]: Senior Secured Loans, BCPE North Star US Holdco 2
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13]			9.54%											9.54%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										$ 920,151
Fair value, ending balance	[3],[5],[11],[12],[14]			$ 920,151											$ 920,151
Investment, Identifier [Axis]: Senior Secured Loans, BCPE North Star US Holdco 2, Inc.
Schedule of Investments [Line Items]
Investment interest rate	[6],[8],[9],[17],[18]	9.43%									9.43%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, ending balance	[1],[6],[8],[9],[17]	$ 938,763									$ 938,763
Investment, Identifier [Axis]: Senior Secured Loans, CareerBuilder, LLC
Schedule of Investments [Line Items]
Investment interest rate		12.51%	[6],[8],[9],[16],[17],[18]	12.51%	[3],[5],[11],[12],[13],[15]						12.51%	[6],[8],[9],[16],[17],[18]			12.51%	[3],[5],[11],[12],[13],[15]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14],[15]										$ 499,544
Fair value, ending balance		$ 331,071	[1],[6],[8],[9],[16],[17]	$ 499,544	[3],[5],[11],[12],[14],[15]						$ 331,071	[1],[6],[8],[9],[16],[17]			$ 499,544	[3],[5],[11],[12],[14],[15]
Investment, Identifier [Axis]: Senior Secured Loans, DRI Holding Inc
Schedule of Investments [Line Items]
Investment interest rate		10.67%	[6],[8],[9],[17],[18]	10.45%	[3],[5],[11],[12],[13]						10.67%	[6],[8],[9],[17],[18]			10.45%	[3],[5],[11],[12],[13]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										$ 971,690
Fair value, ending balance		$ 975,050	[1],[6],[8],[9],[17]	$ 971,690	[3],[5],[11],[12],[14]						$ 975,050	[1],[6],[8],[9],[17]			$ 971,690	[3],[5],[11],[12],[14]
Investment, Identifier [Axis]: Senior Secured Loans, DTI Holdco, Inc.
Schedule of Investments [Line Items]
Investment interest rate		10.12%	[6],[8],[9],[17],[18]	9.80%	[3],[5],[11],[12],[13]						10.12%	[6],[8],[9],[17],[18]			9.80%	[3],[5],[11],[12],[13]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										$ 710,099
Fair value, ending balance		$ 738,769	[1],[6],[8],[9],[17]	$ 710,099	[3],[5],[11],[12],[14]						738,769	[1],[6],[8],[9],[17]			$ 710,099	[3],[5],[11],[12],[14]
Investment, Identifier [Axis]: Senior Secured Loans, First Brands Group
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13]			10.25%											10.25%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										470,696
Fair value, ending balance	[3],[5],[11],[12],[14]			$ 470,696											$ 470,696
Investment, Identifier [Axis]: Senior Secured Loans, PetVet Care Centers, LLC
Schedule of Investments [Line Items]
Investment interest rate	[5],[11],[12],[13],[19]			8.69%											8.69%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[5],[11],[12],[14],[19]										467,003
Fair value, ending balance	[5],[11],[12],[14],[19]			$ 467,003											$ 467,003
Investment, Identifier [Axis]: Senior Secured Loans, RC Buyer, Inc
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13]			9.00%											9.00%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										$ 678,492
Fair value, ending balance	[3],[5],[11],[12],[14]			$ 678,492											$ 678,492
Investment, Identifier [Axis]: Senior Secured Loans, Research Now Group and Dynata LLC
Schedule of Investments [Line Items]
Investment interest rate	[6],[8],[9],[17],[18]	11.13%									11.13%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, ending balance	[1],[6],[8],[9],[17]	$ 1,642,677									$ 1,642,677
Investment, Identifier [Axis]: Senior Secured Loans, Rising Tide Holdings, Inc.
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13],[20]			10.26%											10.26%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14],[20]										$ 669,880
Fair value, ending balance	[3],[5],[11],[12],[14],[20]			$ 669,880											$ 669,880
Investment, Identifier [Axis]: Senior Secured Loans, Sorenson Communications, LLC
Schedule of Investments [Line Items]
Investment interest rate		10.93%	[6],[8],[9],[17],[18]	10.69%	[3],[5],[11],[12],[13]						10.93%	[6],[8],[9],[17],[18]			10.69%	[3],[5],[11],[12],[13]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										$ 1,062,278
Fair value, ending balance		$ 1,029,405	[1],[6],[8],[9],[17]	$ 1,062,278	[3],[5],[11],[12],[14]						$ 1,029,405	[1],[6],[8],[9],[17]			$ 1,062,278	[3],[5],[11],[12],[14]
Investment, Identifier [Axis]: Senior Secured Loans, Staples, Inc.
Schedule of Investments [Line Items]
Investment interest rate		10.63%	[8],[9],[16],[17],[18],[21]	10.30%	[5],[11],[12],[13],[15],[19]						10.63%	[8],[9],[16],[17],[18],[21]			10.30%	[5],[11],[12],[13],[15],[19]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[5],[11],[12],[14],[15],[19]										$ 1,662,469
Fair value, ending balance		$ 865,844	[1],[8],[9],[16],[17],[21]	$ 1,662,469	[5],[11],[12],[14],[15],[19]						865,844	[1],[8],[9],[16],[17],[21]			$ 1,662,469	[5],[11],[12],[14],[15],[19]
Investment, Identifier [Axis]: Senior Secured Loans, Upstream Newco, Inc.
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13]			9.75%											9.75%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14]										$ 1,179,920
Fair value, ending balance	[3],[5],[11],[12],[14]			$ 1,179,920											$ 1,179,920
Investment, Identifier [Axis]: Senior Secured Loans, ViaPath Technologies
Schedule of Investments [Line Items]
Investment interest rate	[6],[8],[9],[16],[17],[18]	9.77%									9.77%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, ending balance	[1],[6],[8],[9],[16],[17]	$ 409,851									$ 409,851
Investment, Identifier [Axis]: Senior Secured Loans, Wellpath Holdings, Inc.
Schedule of Investments [Line Items]
Investment interest rate		11.18%	[6],[8],[9],[16],[17],[18]	10.98%	[3],[5],[11],[12],[13],[15]						11.18%	[6],[8],[9],[16],[17],[18]			10.98%	[3],[5],[11],[12],[13],[15]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14],[15]										$ 1,948,131
Fair value, ending balance		$ 1,960,162	[1],[6],[8],[9],[16],[17]	$ 1,948,131	[3],[5],[11],[12],[14],[15]						$ 1,960,162	[1],[6],[8],[9],[16],[17]			$ 1,948,131	[3],[5],[11],[12],[14],[15]
Investment, Identifier [Axis]: Senior Secured Loans-Second Lien, Shutterfly Finance
Schedule of Investments [Line Items]
Investment interest rate	[6],[8],[9],[17],[18],[22]	6.39%									6.39%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, ending balance	[1],[6],[8],[9],[17],[22]	$ 1,378,000									$ 1,378,000
Maximum Current PIK Rate	[6],[8],[9],[17],[18],[22]	4.00%									4.00%
Investment, Identifier [Axis]: Senior Secured Loans-Second Lien, Shutterfly Finance, LLC
Schedule of Investments [Line Items]
Investment interest rate	[3],[5],[11],[12],[13],[20]			10.24%											10.24%
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[3],[5],[11],[12],[14],[20]										$ 1,416,049
Fair value, ending balance	[3],[5],[11],[12],[14],[20]			$ 1,416,049											$ 1,416,049
Maximum Current PIK Rate	[3],[5],[11],[12],[13],[20]
Investment, Identifier [Axis]: Senior Secured Notes, CURO Group Holdings Corp.
Schedule of Investments [Line Items]
Investment interest rate		7.50%	[6],[8],[9],[10],[18]	7.50%	[2],[3],[13]						7.50%	[6],[8],[9],[10],[18]			7.50%	[2],[3],[13]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[14]										$ 271,899
Fair value, ending balance		$ 290,152	[1],[6],[8],[9],[10]	$ 271,899	[2],[3],[14]						$ 290,152	[1],[6],[8],[9],[10]			$ 271,899	[2],[3],[14]
Investment, Identifier [Axis]: Shutterfly Finance, LLC - Second Lien Term Loan
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
PIK Rate - Capitalized		4.00%		0.00%							4.00%				0.00%
PIK Rate - Paid as cash		0.00%		4.00%							0.00%				4.00%
Maximum Current PIK Rate		4.00%		4.00%							4.00%				4.00%
Investment, Identifier [Axis]: Staples, Inc.
Schedule of Investments [Line Items]
Follow-On Acquisitions (Excluding initial investment cost)							$ 980,031
Investment, Identifier [Axis]: Structured Subordinated Notes, Apidos CLO XXIV
Schedule of Investments [Line Items]
Investment interest rate		25.77%	[6],[8],[9],[10],[18]	26.91%	[2],[3],[5],[13],[23]						25.77%	[6],[8],[9],[10],[18]			26.91%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 163,123
Fair value, ending balance		$ 159,726	[1],[6],[8],[9],[10]	$ 163,123	[2],[3],[5],[14],[23]						$ 159,726	[1],[6],[8],[9],[10]			$ 163,123	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Apidos CLO XXVI
Schedule of Investments [Line Items]
Investment interest rate		7.49%	[6],[8],[9],[10],[18]	12.85%	[2],[3],[5],[13],[23]						7.49%	[6],[8],[9],[10],[18]			12.85%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 164,613
Fair value, ending balance		$ 146,591	[1],[6],[8],[9],[10]	$ 164,613	[2],[3],[5],[14],[23]						$ 146,591	[1],[6],[8],[9],[10]			$ 164,613	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, California CLO IX, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		18.54%	[6],[8],[9],[10],[18]	24.51%	[2],[3],[5],[13],[23]						18.54%	[6],[8],[9],[10],[18]			24.51%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 240,926
Fair value, ending balance		$ 214,411	[1],[6],[8],[9],[10]	$ 240,926	[2],[3],[5],[14],[23]						$ 214,411	[1],[6],[8],[9],[10]			$ 240,926	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Carlyle Global Market Strategies CLO 2014-4-R, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		9.54%	[6],[8],[9],[10],[18]	13.21%	[2],[3],[5],[13],[23]						9.54%	[6],[8],[9],[10],[18]			13.21%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 154,469
Fair value, ending balance		$ 144,074	[1],[6],[8],[9],[10]	$ 154,469	[2],[3],[5],[14],[23]						$ 144,074	[1],[6],[8],[9],[10]			$ 154,469	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Carlyle Global Market Strategies CLO 2017-5, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		4.68%	[6],[8],[9],[10],[18]	5.14%	[2],[3],[5],[13],[23]						4.68%	[6],[8],[9],[10],[18]			5.14%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 319,644
Fair value, ending balance		$ 309,080	[1],[6],[8],[9],[10]	$ 319,644	[2],[3],[5],[14],[23]						$ 309,080	[1],[6],[8],[9],[10]			$ 319,644	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Galaxy XIX CLO, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		7.80%	[6],[8],[9],[10],[18]	12.16%	[2],[3],[5],[13],[23]						7.80%	[6],[8],[9],[10],[18]			12.16%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 126,513
Fair value, ending balance		$ 119,790	[1],[6],[8],[9],[10]	$ 126,513	[2],[3],[5],[14],[23]						$ 119,790	[1],[6],[8],[9],[10]			$ 126,513	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, GoldenTree Loan Opportunities IX, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[6],[8],[9],[10],[18],[24]	0.00%	[2],[3],[5],[13],[23]						0.00%	[6],[8],[9],[10],[18],[24]			0.00%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 116,952
Fair value, ending balance		$ 100,078	[1],[6],[8],[9],[10],[24]	$ 116,952	[2],[3],[5],[14],[23]						$ 100,078	[1],[6],[8],[9],[10],[24]			$ 116,952	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Madison Park Funding XIII, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		1.59%	[6],[8],[9],[10],[18]	0.00%	[2],[3],[5],[13],[23],[25]						1.59%	[6],[8],[9],[10],[18]			0.00%	[2],[3],[5],[13],[23],[25]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23],[25]										$ 110,817
Fair value, ending balance		$ 96,801	[1],[6],[8],[9],[10]	$ 110,817	[2],[3],[5],[14],[23],[25]						$ 96,801	[1],[6],[8],[9],[10]			$ 110,817	[2],[3],[5],[14],[23],[25]
Investment, Identifier [Axis]: Structured Subordinated Notes, Madison Park Funding XIV, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		15.81%	[6],[8],[9],[10],[18]	19.33%	[2],[3],[5],[13],[23]						15.81%	[6],[8],[9],[10],[18]			19.33%	[2],[3],[5],[13],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23]										$ 152,446
Fair value, ending balance		$ 147,832	[1],[6],[8],[9],[10]	$ 152,446	[2],[3],[5],[14],[23]						$ 147,832	[1],[6],[8],[9],[10]			$ 152,446	[2],[3],[5],[14],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, OZLM XII, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[6],[8],[9],[10],[18],[24],[26]	0.00%	[2],[3],[5],[23],[25]						0.00%	[6],[8],[9],[10],[18],[24],[26]			0.00%	[2],[3],[5],[23],[25]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23],[25]										$ 0
Fair value, ending balance		$ 0	[1],[6],[8],[9],[10],[24],[26]	$ 0	[2],[3],[5],[23],[25]						$ 0	[1],[6],[8],[9],[10],[24],[26]			$ 0	[2],[3],[5],[23],[25]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 30, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		4.15%	[6],[8],[9],[10],[18]	3.12%	[2],[3],[5],[23]						4.15%	[6],[8],[9],[10],[18]			3.12%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 284,479
Fair value, ending balance		$ 264,251	[1],[6],[8],[9],[10]	$ 284,479	[2],[3],[5],[23]						$ 264,251	[1],[6],[8],[9],[10]			$ 284,479	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 31, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		10.29%	[6],[8],[9],[10],[18]	13.52%	[2],[3],[5],[23]						10.29%	[6],[8],[9],[10],[18]			13.52%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 138,013
Fair value, ending balance		$ 123,450	[1],[6],[8],[9],[10]	$ 138,013	[2],[3],[5],[23]						$ 123,450	[1],[6],[8],[9],[10]			$ 138,013	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 36, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		17.27%	[6],[8],[9],[10],[18]	19.80%	[2],[3],[5],[23]						17.27%	[6],[8],[9],[10],[18]			19.80%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 320,718
Fair value, ending balance		$ 304,798	[1],[6],[8],[9],[10]	$ 320,718	[2],[3],[5],[23]						$ 304,798	[1],[6],[8],[9],[10]			$ 320,718	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 39, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		21.09%	[6],[8],[9],[10],[18]	22.80%	[2],[3],[5],[23]						21.09%	[6],[8],[9],[10],[18]			22.80%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 196,987
Fair value, ending balance		$ 192,074	[1],[6],[8],[9],[10]	$ 196,987	[2],[3],[5],[23]						$ 192,074	[1],[6],[8],[9],[10]			$ 196,987	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XIV, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[6],[8],[9],[10],[18],[24]	0.00%	[2],[3],[5],[13],[23],[25]						0.00%	[6],[8],[9],[10],[18],[24]			0.00%	[2],[3],[5],[13],[23],[25]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[14],[23],[25]										$ 231,504
Fair value, ending balance		$ 170,442	[1],[6],[8],[9],[10],[24]	$ 231,504	[2],[3],[5],[14],[23],[25]						$ 170,442	[1],[6],[8],[9],[10],[24]			$ 231,504	[2],[3],[5],[14],[23],[25]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XV, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		9.83%	[6],[8],[9],[10],[18]	11.77%	[2],[3],[5],[23]						9.83%	[6],[8],[9],[10],[18]			11.77%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 244,193
Fair value, ending balance		$ 229,582	[1],[6],[8],[9],[10]	$ 244,193	[2],[3],[5],[23]						$ 229,582	[1],[6],[8],[9],[10]			$ 244,193	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XXI,Ltd.
Schedule of Investments [Line Items]
Investment interest rate		16.39%	[6],[8],[9],[10],[16],[18]	18.87%	[2],[3],[5],[15],[23]						16.39%	[6],[8],[9],[10],[16],[18]			18.87%	[2],[3],[5],[15],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[15],[23]										$ 188,503
Fair value, ending balance		$ 182,209	[1],[6],[8],[9],[10],[16]	$ 188,503	[2],[3],[5],[15],[23]						$ 182,209	[1],[6],[8],[9],[10],[16]			$ 188,503	[2],[3],[5],[15],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO II, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[6],[8],[9],[10],[18],[24],[26]	0.00%	[2],[3],[5],[23],[25]						0.00%	[6],[8],[9],[10],[18],[24],[26]			0.00%	[2],[3],[5],[23],[25]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23],[25]										$ 456,140
Fair value, ending balance		$ 390,028	[1],[6],[8],[9],[10],[24],[26]	$ 456,140	[2],[3],[5],[23],[25]						$ 390,028	[1],[6],[8],[9],[10],[24],[26]			$ 456,140	[2],[3],[5],[23],[25]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO VII-R, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		18.09%	[6],[8],[9],[10],[18],[26]	15.65%	[2],[3],[5],[23]						18.09%	[6],[8],[9],[10],[18],[26]			15.65%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 45,533
Fair value, ending balance		$ 50,906	[1],[6],[8],[9],[10],[26]	$ 45,533	[2],[3],[5],[23]						$ 50,906	[1],[6],[8],[9],[10],[26]			$ 45,533	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO XVIII, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		2.35%	[6],[8],[9],[10],[18],[26]	3.39%	[2],[3],[5],[23]						2.35%	[6],[8],[9],[10],[18],[26]			3.39%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 144,187
Fair value, ending balance		$ 131,432	[1],[6],[8],[9],[10],[26]	$ 144,187	[2],[3],[5],[23]						$ 131,432	[1],[6],[8],[9],[10],[26]			$ 144,187	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, THL Credit Wind River 2013-1 CLO, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		0.00%	[6],[8],[9],[10],[18],[26]	0.00%	[2],[3],[5],[23],[25]						0.00%	[6],[8],[9],[10],[18],[26]			0.00%	[2],[3],[5],[23],[25]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23],[25]										$ 103,140
Fair value, ending balance		$ 99,625	[1],[6],[8],[9],[10],[26]	$ 103,140	[2],[3],[5],[23],[25]						$ 99,625	[1],[6],[8],[9],[10],[26]			$ 103,140	[2],[3],[5],[23],[25]
Investment, Identifier [Axis]: Structured Subordinated Notes, Venture XXXIV CLO, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		16.19%	[6],[8],[9],[10],[18],[26]	19.40%	[2],[3],[5],[23]						16.19%	[6],[8],[9],[10],[18],[26]			19.40%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 196,420
Fair value, ending balance		$ 184,932	[1],[6],[8],[9],[10],[26]	$ 196,420	[2],[3],[5],[23]						$ 184,932	[1],[6],[8],[9],[10],[26]			$ 196,420	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Voya CLO 2016-1, Ltd.
Schedule of Investments [Line Items]
Investment interest rate		7.69%	[6],[8],[9],[10],[18],[26]	10.97%	[2],[3],[5],[23]						7.69%	[6],[8],[9],[10],[18],[26]			10.97%	[2],[3],[5],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[23]										$ 165,765
Fair value, ending balance		$ 152,343	[1],[6],[8],[9],[10],[26]	$ 165,765	[2],[3],[5],[23]						$ 152,343	[1],[6],[8],[9],[10],[26]			$ 165,765	[2],[3],[5],[23]
Investment, Identifier [Axis]: Structured Subordinated Notes, Voya IM CLO 2013-1, Ltd
Schedule of Investments [Line Items]
Investment interest rate		1.22%	[6],[8],[9],[10],[16],[18],[26]	0.49%	[2],[3],[5],[15],[23]						1.22%	[6],[8],[9],[10],[16],[18],[26]			0.49%	[2],[3],[5],[15],[23]
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, beginning balance	[2],[3],[5],[15],[23]										$ 121,672
Fair value, ending balance		$ 118,835	[1],[6],[8],[9],[10],[16],[26]	$ 121,672	[2],[3],[5],[15],[23]						$ 118,835	[1],[6],[8],[9],[10],[16],[26]			$ 121,672	[2],[3],[5],[15],[23]
Investment, Identifier [Axis]: ViaPath Technologies (f/k/a Global Tel*Link Corporation)
Schedule of Investments [Line Items]
Follow-On Acquisitions (Excluding initial investment cost)									$ 1,436,250
Investment, Identifier [Axis]: Voya IM CLO 2013-1, Ltd.
Schedule of Investments [Line Items]
Follow-On Acquisitions (Excluding initial investment cost)																		$ 20,584
Investment, Identifier [Axis]: Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)
Schedule of Investments [Line Items]
Follow-On Acquisitions (Excluding initial investment cost)														$ 1,327,000
Net Assets | Investments Held Benchmark | Product Concentration Risk
Schedule of Investments [Line Items]
Percentage of total assets at fair value											100.00%				74.00%
Revolving Credit Facility | Credit Facility
Schedule of Investments [Line Items]
Collateralized financings		0		$ 16,278,891							$ 0				$ 16,278,891
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Fair value, ending balance		$ 17,090,718									$ 17,090,718
Revolving Credit Facility | Credit Facility | Net Assets | Investments Held Benchmark | Product Concentration Risk
Schedule of Investments [Line Items]
Percentage of total assets at fair value											0.00%						74.00%

[1] Fair value is determined by the Company’s Board of Directors (see Note 2).

[2] Indicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of June 30, 2023, 17% are non-qualifying assets as a percentage of total assets.

[3] Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 3 and 9 within the accompanying notes to the consolidated financial statements.

[4] Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

[5] The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

[6] Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 2 and 8 within the accompanying notes to the consolidated financial statements.

[7] Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

[8] Security is held by the Company and is pledged as collateral for the Senior Secured Revolving Credit Facility (see Note 10). The fair value of the investments used as collateral by the Company for the Senior Secured Revolving Credit Facility at September 30, 2023 was $17,090,718, representing 100% of our total investments.

[9] The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

[10] ndicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of September 30, 2023, 19% are non-qualifying assets as a percentage of total assets.

[11] Security is held by Prospect Flexible Funding, LLC, our SPV, and is pledged as collateral for the Credit Facility and such security is not available as collateral to our general creditors (see Note 10). The fair values of the investments held by the SPV at June 30, 2023 was $16,278,891 representing 74% of our total investments.

[12] Syndicated investments which were originated by a financial institution and broadly distributed.

[13] The majority of the investments bear interest at a rate that may be determined by reference to either London Interbank Offered Rate ("LIBOR" or "L") or Secured Overnight Financing Rate ("SOFR") which resets monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR or the prime lending rate ("Prime") and the current contractual interest rate in effect at June 30, 2023. Certain investments are subject to a LIBOR, SOFR or Prime interest rate floor. The one-month ("1ML"), three-month ("3ML"), and six-month ("6ML") LIBOR rates are based on the applicable LIBOR rate for each investment on its reset date. The one-month ("1M SOFR") and three-month ("3M SOFR") SOFR rates are based on the applicable SOFR rate for each investment on its reset date.

[14] Fair value is determined by the Company’s Board of Directors (see Note 2).

[15] Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments): Portfolio CompanyInvestmentFollow-On Acquisition DatesFollow-On Acquisitions (Excluding initial investment cost)Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)Senior Secured Loans-First Lien8/2/2019908,750 Octagon Investment Partners XXI, Ltd.Structured Subordinated Notes2/14/201935,015 Staples, Inc.Senior Secured Loans-First Lien2/3/2020980,031 ViaPath Technologies (f/k/a Global Tel*Link Corporation) Senior Secured Loans-First Lien7/9/2019, 7/16/20191,436,250 Voya IM CLO 2013-1, Ltd.Structured Subordinated Notes10/17/2017, 7/1/201920,584 Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)Senior Secured Loans-First Lien4/10/2019, 7/25/20191,327,000 

[16] Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments): Portfolio CompanyInvestmentFollow-On Acquisition DatesFollow-On Acquisitions (Excluding initial investment cost)Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)Senior Secured Loans-First Lien8/2/2019$908,750 CareerBuilder, LLCSenior Secured Loans-First Lien6/5/2020690,000 Octagon Investment Partners XXI, Ltd.Structured Subordinated Notes2/14/201935,015 Staples, Inc.Senior Secured Loans-First Lien2/3/2020980,031 ViaPath Technologies (f/k/a Global Tel*Link Corporation) Senior Secured Loans-First Lien7/9/2019, 7/16/20191,436,250 Voya IM CLO 2013-1, Ltd.Structured Subordinated Notes10/17/2017, 7/1/201920,584 Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)Senior Secured Loans-First Lien4/10/2019, 7/25/20191,327,000 

[17] Syndicated investments which were originated by a financial institution and broadly distributed.

[18] The majority of the investments bear interest at a rate that may be determined by reference to either London Interbank Offered Rate ("LIBOR" or "L") or Secured Overnight Financing Rate ("SOFR") which resets monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR or the prime lending rate ("Prime") and the current contractual interest rate in effect at September 30, 2023. Certain investments are subject to a LIBOR, SOFR or Prime interest rate floor. The one-month ("1ML") and three-month ("3ML") LIBOR rates are based on the applicable LIBOR rate for each investment on its reset date. The three-month ("3M SOFR") and six-month ("6M SOFR") SOFR rates are based on the applicable SOFR rate for each investment on its reset date.

[19] Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 3 within the accompanying notes to the consolidated financial statements.

[20] The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option of the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the year ended June 30, 2023: Security NamePIK Rate - CapitalizedPIK Rate - Paid as cashMaximum Current PIK RateRising Tide Holdings, Inc. - First Lien Term Loan3.75 %— %3.75 %Shutterfly Finance, LLC - Second Lien Term Loan— %4.00 %4.00 %

[21] Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 2 within the accompanying notes to the consolidated financial statements.

[22] The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the three months ended September 30, 2023: Security NamePIK Rate - CapitalizedPIK Rate - Paid as cashMaximum Current PIK RateShutterfly Finance, LLC - Second Lien Term Loan4.00 %— %4.00 %

[23] The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

[24] The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

[25] The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

[26] The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

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NATURE OF OPERATIONS

3 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS

NATURE OF OPERATIONS

Prospect Floating Rate and Alternative Income Fund, Inc. (the “Company”, “PFLOAT”, “our”, “us”, “we”), incorporated in Maryland on April 29, 2011, is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to generate current income and, as a secondary objective, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. Under normal market conditions, we will invest at least 80% of our net assets (plus any borrowings for investment purposes) in floating rate loans and other income producing investments. We intend to meet our investment objective by primarily lending to and investing in the debt of privately-owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $2.5 billion. We expect that at least 70% of our portfolio of investments will consist primarily of directly originated or syndicated senior secured first lien loans, directly originated or syndicated senior secured second lien loans, and to a lesser extent, subordinated debt, and that up to 30% of our portfolio of investments will consist of other securities, including private equity (both common and preferred), dividend-paying equity, royalties, and the equity and junior debt tranches of a type of pools of broadly syndicated loans known as collateralized loan obligations (“CLOs”), which we also refer to as subordinated structured notes (“SSNs”). Pursuant to our Articles of Incorporation, as amended, restated and supplemented, the Company is authorized to issue 75,000,000 shares of common stock with a par value of $0.001 per share. Additionally, the Company is authorized to issue 25,000,000 shares of preferred stock with a par value of $0.001 per share. The Company previously offered for sale a maximum of $300,000,000 of shares of common stock on a “best efforts” basis pursuant to a registration statement on Form N-2 filed with the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended (the "Securities Act"), that was dated and became effective on October 27, 2020 (the “Offering”). The Company's initial registration statement on Form N-2 was declared effective on September 4, 2012 and the Company commenced the Offering on such date. On June 25, 2014, the Company met its minimum offering requirement of $2,500,000 and released all shares held in escrow. On and effective February 19, 2021, the Company terminated the Offering and, as a result, the Company's Amended and Restated Dealer Manager Agreement, dated August 6, 2020, with Triton Pacific Securities, LLC (“TPS”) terminated in accordance with its terms and TPS ceased serving as the Company's dealer manager effective as of such date. Effective September 19, 2022, the Company engaged Preferred Capital Securities, LLC (“PCS”) as the Company’s dealer manager for the Company’s offering to “accredited investors” (within the meaning of Rule 501(a) under the Securities Act) of shares of its common stock (the “Private Offering”) on the terms and conditions set forth in the Company’s confidential private placement memorandum. The Company is relying on the exemption provided by Rule 506(b) of Regulation D and Section 4(a)(2) of the Securities Act in connection with the Private Offering. On September 13, 2023, the Company filed with the SEC an initial registration statement on Form N-2 for the offer and sale of up to $300,000,000 shares of its Class S, Class D and Class I common stock (the “Multi-Class Offering”). In connection with the Multi-Class Offering, the Company intends to authorize the issuance of separate classes of its common stock and designate such classes Class S, Class D and Class I common stock, respectively (the "Common Stock"). The registration statement has not been declared effective by the SEC and no Common Stock may be sold in connection with the Multi-Class Offering until such registration statement is declared effective by the SEC.                                                                                                    

On March 31, 2019, Pathway Capital Opportunity Fund, Inc. (“PWAY”) merged with and into us (the “Merger”). As the combined surviving company, we were renamed TP Flexible Income Fund, Inc. (we were formerly known as Triton Pacific Investment Corporation, Inc. (“TPIC”)). In connection with the Merger, Prospect Flexible Income Management, LLC (“PFIM”), an affiliate of PWAY, became our investment adviser, and Prospect Administration LLC (the "Administrator"), an affiliate of PFIM and our new investment advisor, Prospect Capital Management L.P. (the “Adviser”), became our administrator.

On and effective August 5, 2020, the Company changed its name to Prospect Flexible Income Fund, Inc. from TP Flexible Income Fund, Inc. by filing Articles of Amendment to its Fourth Articles of Amendment and Restatement, as amended and supplemented. On and effective January 10, 2022, the Company changed its name to Prospect Sustainable Income Fund, Inc. from Prospect Flexible Income Fund, Inc. To effectuate the name change, the Company amended its Fourth Articles of Amendment and Restated, as amended and supplemented, and amended and restated its Second Amended and Restated Bylaws. On and effective September 16, 2022, the Company changed its name to Prospect Floating Rate and Alternative Income Fund, Inc. from Prospect Sustainable Income Fund, Inc. by filing Articles of Amendment to its Fourth Articles of Amendment and Restatement, as amended and supplemented, and amended and restated its Third Amended and Restated Bylaws.

On April 20, 2021, we entered into an investment advisory agreement (the “Investment Advisory Agreement”) with the Adviser, which was approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act). Our stockholders approved the Investment Advisory Agreement at a Special Meeting of Stockholders held on March 31, 2021. The Investment Advisory Agreement replaced our prior investment advisory agreement, dated March 31, 2019 (the “Former Investment Advisory Agreement”), with PFIM, our former investment adviser, which terminated

effective April 20, 2021. The Investment Advisory Agreement is identical in all material respects to the Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as our investment adviser instead of PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM. On November 5, 2021, we amended and restated the Investment Advisory Agreement (the “Amended and Restated Advisory Agreement”) to reduce the advisory fees payable thereunder, effective as of January 1, 2022 and until the one year anniversary of the listing of our common stock on a national securities exchange. The Amended and Restated Advisory Agreement was unanimously approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), and became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser are as set forth in the Investment Advisory Agreement. The Amended and Restated Advisory Agreement was most recently approved by our Board of Directors, including all of our directors who are not “interested persons” (as defined in the 1940 Act), on June 15, 2023. See “Note 4 - Related Party Transactions and Arrangements - Investment Advisory Agreement” for additional information.

The Adviser was formed in Delaware as a private investment management firm and is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940, as amended, or the Advisers Act. The Adviser oversees the management of our activities and is responsible for making the investment decisions with respect to our investment portfolio, subject to the oversight of our Board of Directors.

On May 16, 2019, we formed a wholly-owned subsidiary TP Flexible Funding, LLC (the “SPV”), a Delaware limited liability company and a bankruptcy remote special purpose entity, which holds certain of our portfolio loan investments that were used as collateral for the Credit Facility (as defined in Note 10) at the SPV. This subsidiary has been consolidated since operations commenced. On and effective August 5, 2020, the Company changed the name of the SPV to Prospect Flexible Funding, LLC.

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SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation. The accompanying interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q, ASC 946, Financial Services—Investment Companies (“ASC 946”), and Articles 6 and 10 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with GAAP are omitted. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending June 30, 2024. Our consolidated financial statements include the accounts of PFLOAT and the SPV. All intercompany balances and transactions have been eliminated in consolidation. 

Management Estimates and Assumptions. The preparation of the consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income, expenses, and gains and losses during the reported period. Changes in the economic environment, financial markets, creditworthiness of the issuers of our investment portfolio and any other parameters used in determining these estimates could cause actual results to differ, and these differences could be material.

Cash, Cash Equivalents and Restricted Cash. All cash and restricted cash balances are maintained with high credit quality financial institutions. Cash, cash equivalents and restricted cash consist of demand deposits and highly liquid investments (e.g., U.S. treasury notes) with original maturities of three months or less. Cash held at financial institutions has exceeded the Federal Deposit Insurance Corporation ("FDIC") insured limit. The Company has not incurred any losses on these accounts, and the credit risk exposure is mitigated by the financial strength of the banking institutions where the amounts are held. The Company had restrictions prior to September 21, 2023 on the uses of the cash held by Prospect Flexible Funding, LLC based on the terms of the Credit Facility. Cash, cash equivalents and restricted cash are carried at cost, which approximates fair value. Cash equivalents are classified as Level 1 in the fair value hierarchy. As of September 30, 2023 and June 30, 2023, cash equivalents were $4,994,167 and $4,997,938, respectively.

Investment Transactions. 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. Specifically, we record all security transactions on a trade date basis. We determine the fair value of our investments on a quarterly basis (as discussed in Investment Valuation below), with quarter over quarter fluctuations in fair value reflected as a net change in unrealized gains (losses) from investments in the Consolidated Statements of Operations.

Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Realized gains or losses on the sale of investments are calculated using the specific identification method. Amounts for investments and or cash equivalents traded but not yet settled are reported in payable for

open trades or receivable for open trades in the Consolidated Statements of Assets and Liabilities. As of September 30, 2023 and June 30, 2023, we have no assets going through foreclosure.

Investment Valuation. As a BDC, and in accordance with the 1940 Act, we fair value our investment portfolio on a quarterly basis, with any unrealized gains and losses reflected in net increase (decrease) in net assets resulting from operations on our Consolidated Statements of Operations. To value our investments, we follow the guidance of ASC 820, Fair Value Measurement (“ASC 820”), that defines fair value, establishes a framework for measuring fair value in conformity with GAAP, and requires disclosures about fair value measurements. In accordance with ASC 820, the fair value of our investments is defined as the price that we would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment is transacted.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1. Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2. Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3. Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment.

Our Board of Directors has established procedures for the valuation of our investment portfolio. These procedures are detailed below.

Investments for which market quotations are readily available are valued at such market quotations.

For most of our investments, market quotations are not available. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, due to factors such as volume and frequency of price quotes, our Board of Directors has approved a multi-step valuation process each quarter, as described below.

1. Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors.

2. The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report.

3. The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment.

4. The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee.

For intra-quarter periods and pursuant to Rule 2a-5, the Board of Directors has designated the Adviser as the valuation designee (the “Valuation Designee”) for the purpose of performing fair value determinations for investments for which market quotations are not readily available, or when such market quotations are deemed not to represent fair value. The Board of Directors has approved a multi-step valuation process for such intra-quarter investment valuations, as described below, and such investments are classified in Level 3 of the fair value hierarchy:

1.The Adviser will start with the most recent quarterly valuations determined pursuant to the process described above.

2.The Adviser will calculate the estimated earnings per share for each investment in order to adjust the valuation of that investment for income that is expected to be realized.

3.The Adviser will consider other factors that should be taken into account in order to adjust the valuations, including, market changes in expected returns for similar investments; performance improvement or deterioration which would change the margin added to the base interest rate charged; the nature and realizable value of any collateral; the issuer’s ability to make payments and its earnings and discounted cash flow; the markets in which the issuer does business; comparisons to publicly traded securities; and other relevant factors.

Our non-CLO investments that are classified as Level 3 are valued utilizing a yield technique, enterprise value (“EV”) technique, net asset value technique, asset recovery technique, discounted cash flow technique, or a combination of techniques, as appropriate. The yield technique uses loan spreads for loans and other relevant information implied by market data involving identical or comparable assets or liabilities. Under the EV technique, the EV of a portfolio company is first determined and allocated over the portfolio company’s securities in order of their preference relative to one another (i.e., “waterfall” allocation). To determine the EV, we typically use a market (multiples) valuation approach that considers relevant and applicable market trading data of guideline public companies, transaction metrics from precedent merger and acquisitions transactions, and/or a discounted cash flow technique. The net asset value technique, an income approach, is used to derive a value of an underlying investment by dividing a relevant earnings stream by an appropriate capitalization rate. For this purpose, we consider capitalization rates for similar properties as may be obtained from guideline public companies and/or relevant transactions. The asset recovery technique is intended to approximate the net recovery value of an investment based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company’s assets. The discounted cash flow technique converts future cash flows or earnings to a range of fair values from which a single estimate may be derived utilizing an appropriate discount rate. The fair value measurement is based on the net present value indicated by current market expectations about those future amounts.

In applying these methodologies, additional factors that we consider in valuing our investments may include, as we deem relevant: security covenants, call protection provisions, and information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments; the principal markets in which the portfolio company does business; publicly available financial ratios of peer companies; the principal market; and enterprise values, among other factors.

Our investments in CLOs are classified as Level 3 fair value measured securities under ASC 820 and are valued using a discounted multi-path cash flow model. The CLO structures are analyzed to identify the risk exposures and to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, which is a simulation used to model the probability of different outcomes, to generate probability-weighted (i.e., multi-path) cash flows from the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market as well as certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the multi-path cash flows. We are not responsible for and have no influence over the asset management of the portfolios underlying the CLO investments we hold, as those portfolios are managed by non-affiliated third-party CLO collateral managers. The main risk factors are default risk, prepayment risk, interest rate risk, downgrade risk, and credit spread risk.

Investment Risks

Our investments are subject to a variety of risks. Those risks include the following:

Market Risk

Market risk represents the potential loss that can be caused by a change in the fair value of the financial instrument.

Credit Risk

Credit risk represents the risk that we would incur if the counterparties failed to perform pursuant to the terms of their agreements with us.

Credit Spread Risk

Credit spread risk represents the risk that with higher interest rates comes a higher risk of defaults.

Default Risk

Default risk is the risk that a borrower will be unable to make the required payments on their debt obligation.

Downgrade Risk

Downgrade risk results when rating agencies lower their rating on a bond which are usually accompanied by bond price declines.

Liquidity Risk

Liquidity risk represents the possibility that we may not be able to rapidly adjust the size of our investment positions in times of high volatility and financial stress at a reasonable price.

Interest Rate Risk

Interest rate risk represents a change in interest rates, which could result in an adverse change in the fair value of an interest-bearing financial instrument.

Prepayment Risk

Many of our debt investments allow for prepayment of principal without penalty. Downward changes in interest rates may cause prepayments to occur at a faster than expected rate, thereby effectively shortening the maturity of the security and making us less likely to fully earn all of the expected income of that security and reinvesting in a lower yielding instrument.

Other Risks

Political developments, including civil conflicts and war, sanctions or other measures by the United States or other governments, natural disasters, public health crises and other events outside the Company’s control can directly or indirectly have a material adverse impact on the Company and our portfolio companies.

Structured Credit Related Risk

CLO investments may be riskier and less transparent to us than direct investments in underlying companies. CLOs typically will have no significant assets other than their underlying senior secured loans. Therefore, payments on CLO investments are and will be payable solely from the cash flows from such senior secured loans.

Investment Classification. We are a non-diversified company within the meaning of the 1940 Act. As required by the 1940 Act, we classify our investments by level of control. As defined in the 1940 Act, “Control Investments” are those where there is the ability or power to exercise a controlling influence over the management or policies of a company. Control is generally deemed to exist when a company or individual possesses or has the right to acquire within 60 days or less, a beneficial ownership of more than 25% of the voting securities of an investee company. Under the 1940 Act, “Affiliate Investments” are defined by a lesser degree of influence and are deemed to exist through the possession outright or via the right to acquire within 60 days or less, beneficial ownership of 5% or more of the outstanding voting securities of another person. “Non-Control/Non-Affiliate Investments” are those that are neither Control Investments nor Affiliate Investments.

As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). As of September 30, 2023 and June 30, 2023, our qualifying assets as a percentage of total assets stood at 80.97% and 82.67%, respectively.

Revenue Recognition. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Accretion of such purchase discounts or amortization of such premiums is calculated using the effective interest method as of the settlement date and adjusted only for material amendments or prepayments. Upon the prepayment of a loan or bond, any unamortized discount or premium is recorded as interest income. The Company records dividend income on the ex-dividend date. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. Loans are placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Unpaid accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans are either applied to the cost basis or interest income, depending upon management’s judgment of the collectibility of the loan receivable. Non-accrual loans are restored to accrual status when past due principal and interest is paid and in management’s judgment, is likely to remain current and future principal and interest collections when due are probable. Interest received and applied against cost while a loan is on non-accrual, and PIK interest capitalized but not recognized while on non-accrual, is recognized prospectively on the effective yield basis through maturity of the loan when placed back on accrual status, to the extent deemed collectible by management. As of September 30, 2023 and June 30, 2023, the Company did not have any loans on non-accrual status. Upfront structuring fees are recorded as fee income when earned. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.                                        

Some of our loans and other investments may have contractual payment-in-kind (“PIK”) interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, we capitalize the accrued interest (reflecting such amounts in the basis as additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point that we believe PIK is not fully expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the

related receivable through interest or dividend income, respectively. We do not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if we believe that PIK is expected to be realized.

Interest income from investments in Structured Subordinated Notes (typically preferred shares, income notes or subordinated notes of CLO funds) is recorded based on an estimation of an effective yield to expected maturity utilizing assumed future cash flows in accordance with ASC 325-40, Beneficial Interest in the Securitized Financial Assets. The Company monitors the expected cash inflows from CLO equity investments, including the expected residual payments, and the estimated effective yield is determined and updated periodically.

Due from and to Adviser. Amounts due from the Adviser are for amounts waived under the ELA, respectively (as such terms are defined in Note 4) and amounts due to PFIM and the Adviser are for base management fees, incentive fees, operating expenses and offering and organization expenses paid on our behalf. All balances due from and to the Adviser are settled quarterly.

Payment-In-Kind Interest. The Company has certain investments in its portfolio that contain a PIK interest provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. For the three months ended September 30, 2023 and 2022, PIK interest included in interest income totaled $21,994 and $162, respectively. To maintain RIC tax treatment, and to avoid corporate tax, substantially all of this income must be paid out to the stockholders in the form of distributions, even though the Company has not yet collected the cash.

Offering Costs and Expenses. The Company will incur certain costs and expenses in connection with the Private Offering and registering to sell shares of its common stock. These costs and expenses principally relate to certain costs and expenses for advertising and sales, printing and marketing costs, professional and filing fees. Offering costs incurred by the Company were capitalized to deferred offering costs on the Consolidated Statements of Assets and Liabilities and will be amortized to expense over the 12 month period following the effectiveness of the registration to sell shares of its common stock on a straight line basis.

Dividends and Distributions. Dividends and distributions to common stockholders are recorded on the record date. The amount, if any, to be paid as a monthly dividend or distribution is approved by our Board of Directors quarterly and generally depends on our earnings, financial condition, maintenance of our tax treatment as a RIC, compliance with applicable BDC regulations and such other factors as our Board of Directors deems relevant from time to time. Net realized capital gains, if any, are distributed at least annually. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money originally invested and represent a return of capital distribution to shareholders for tax purposes.

Financing Costs. We record origination expenses related to our Revolving Credit Facility and Senior Secured Revolving Credit Facility as deferred financing costs. These expenses are deferred and amortized as part of interest expense using the straight-line method over the stated life of the obligation of our revolving credit facility. (See Note 10 for further discussion.)

Per Share Information. Net increase or decrease in net assets resulting from operations per share is calculated using the weighted average number of common shares outstanding for the period presented. (See Note 11 for further discussion.)

Net Realized and Net Change in Unrealized Gains or Losses. Gains or losses on the sale of investments are calculated by 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. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses when gains or losses are realized.

Federal and State Income Taxes. The Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and intends to continue to comply with the requirements of the Code applicable to RICs. As a RIC, the Company is required to distribute at least 90% of its investment company taxable income and intends to distribute (or retain through a deemed distribution) all of its investment company taxable income and net capital gain to stockholders; therefore, the Company has made no provision for income taxes. The character of income and gains that the Company will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividends and distributions and other permanent book and tax differences are reclassified to paid-in capital.

If the Company does not distribute (or is not deemed to have distributed) at least 98% of its annual ordinary income and 98.2% of its net capital gains in the calendar year earned, it will generally be required to pay an excise tax equal to 4% of the amount by which 98% of its annual ordinary income and 98.2% of its capital gains exceeds the distributions from such taxable income for the year. To the extent that the Company determines that its estimated current year annual taxable income will be in excess

of estimated current year dividend distributions from such taxable income, it accrues excise taxes, if any, on estimated excess taxable income. As of September 30, 2023, the Company expects to have no excise tax due for the 2023 calendar year. As of September 30, 2023, the Company has accrued $0 of excise tax for this period.

If the Company fails to satisfy the annual distribution requirement or otherwise fails to qualify as a RIC in any taxable year, it would be subject to tax on all of its taxable income at regular corporate income tax rates. The Company would not be able to deduct distributions to stockholders, nor would it be required to make distributions. Distributions would generally be taxable to the Company’s individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced maximum rate applicable to qualified dividend income to the extent of its current and accumulated earnings and profits, provided certain holding period and other requirements are met. Subject to certain limitations under the Code, corporate distributions would be eligible for the dividends-received deduction. To qualify again to be taxed as a RIC in a subsequent year, the Company would be required to distribute to its shareholders its accumulated earnings and profits attributable to non-RIC years. In addition, if the Company failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, it would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

The Company follows ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the consolidated financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. As of September 30, 2023, the Company did not record any unrecognized tax benefits or liabilities. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, its major tax jurisdiction is federal. The Company’s federal tax returns for the tax years ended December 31, 2020 and thereafter remain subject to examination by the Internal Revenue Service.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board. The Company has assessed currently issued ASUs and has determined that they are not applicable or are expected to have minimal impact on its consolidated financial statements.

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SHARE TRANSACTIONS

3 Months Ended

Sep. 30, 2023

Equity [Abstract]

SHARE TRANSACTIONS

SHARE TRANSACTIONS

Below is a summary of transactions with respect to shares of common stock of PFLOAT during the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30, 2023			Three Months Ended September 30, 2022
	PFLOAT Class A Common Shares			PFLOAT Class A Common Shares
	Shares	Amount		Shares	Amount
Shares issued through reinvestment of distributions	18,415	$	112,005	21,177	$	153,281
Repurchase of common shares	(19,963)	(121,569)		(21,818)	(152,505)
Net (decrease)/increase from capital transactions	(1,548)	$	(9,564)	(641)	$	776

Status of Prior Public Offering

On and effective February 19, 2021, the Company terminated the Offering.

The respective net increase/(decrease) from capital transactions during the three months ended September 30, 2023 and 2022 includes reinvested stockholder distributions as noted in the table above.

Share Repurchase Program

The Company may conduct quarterly tender offers pursuant to its share repurchase program. The Company’s Board of Directors will consider the following factors, among others, in making its determination regarding whether to cause the Company to offer to repurchase shares of common stock and under what terms:

•    the effect of such repurchases on the Company’s qualification as a RIC (including the consequences of any necessary asset sales);

•    the liquidity of the Company’s assets (including fees and costs associated with disposing of assets);

•    the Company’s investment plans and working capital requirements;

•    the relative economies of scale with respect to the Company’s size;

•    the Company’s history in repurchasing shares of common stock or portions thereof; and

•    the condition of the securities markets.

The Company currently intends to limit the number of shares of common stock to be repurchased during any calendar year to the number of shares of common stock it can repurchase with the cash retained as a result of issuing shares under its distribution reinvestment plan to those stockholders who have elected to receive their distributions in the form of additional shares rather than in cash.. At the discretion of the Company’s Board of Directors, the Company may also use cash on hand, cash available from borrowings and cash from the liquidation of securities investments as of the end of the applicable period to repurchase shares of common stock. In addition, the Company will limit the number of shares of common stock to be repurchased in any calendar year to 10% of the weighted average number of shares of common stock outstanding in the prior calendar year, or 2.5% in each calendar quarter, though the actual number of shares of common stock that the Company offers to repurchase may be less in light of the limitations noted above.

Our Board of Directors reserves the right, in its sole discretion, to limit the number of shares to be repurchased for each class by applying the limitations on the number of shares to be repurchased, noted above, on a per class basis. We further anticipate that we will offer to repurchase such shares on each date of repurchase at a price equal to the current net offering price or net asset value per share, as applicable, on each date of repurchase. If the amount of repurchase requests exceeds the number of shares we seek to repurchase, we will repurchase shares on a pro-rata basis. As a result, we may repurchase less than the full amount of shares that stockholders submit for repurchase. If we do not repurchase the full amount of the shares that stockholders have requested to be repurchased, or we determine not to make repurchases of our shares, stockholders may not be able to dispose of their shares. Any periodic repurchase offers will be subject in part to our available cash and compliance with the 1940 Act.

Below is a summary of transactions with respect to shares of common stock during each tender offer:

Quarterly Offer Date	Repurchase Effective Date	Shares Repurchased	Percentage of Shares Tendered That Were Repurchased		Repurchase Price Per Share		Aggregate Consideration for Repurchased Shares
Three months ended September 30, 2023
September 30, 2023	July 31, 2023	19,963	7	%	$	6.09	$	121,569
Total for the three months ended September 30, 2023		19,963					$	121,569
Year ended June 30, 2023
December 31, 2022	November 7, 2022	23,434	11	%	$	6.65	155,832
September 30, 2022	August 1, 2022	21,818	9	%	$	6.99	152,505
Total for the year ended June 30, 2023		45,252					$	308,337

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RELATED PARTY TRANSACTIONS AND ARRANGEMENTS

3 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS AND ARRANGEMENTS

RELATED PARTY TRANSACTIONS AND ARRANGEMENTS

Administration Agreement

The Administrator, an affiliate of the Adviser, became the administrator for the Company pursuant to an administrative agreement, as amended and restated as of June 17, 2019 (the "Administration Agreement"). The Administrator performs, oversees and arranges for the performance of administrative services necessary for the operation of the Company. These services include, but are not limited to, accounting, finance and legal services. For providing these services, facilities and personnel, the Company reimburses the Administrator for the Company’s actual and allocable portion of expenses and overhead incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and the Company’s allocable portion of the costs of its Chief Financial Officer and Chief Compliance Officer and her staff. For the three months ended September 30, 2023 and 2022, allocation of overhead from the Administrator to the Company was $223,750 and $60,582, respectively. During the three months ended September 30, 2023 and 2022, $8,750, respectively, of US Bank and BNY fees are being included within the Administrator costs incurred by the Company. As of September 30, 2023 and June 30, 2023, $1,087,384 and $868,634, respectively, was payable to the Administrator, US Bank and BNY by the Company.

Investment Advisory Agreement

On April 20, 2021, the Company entered into the Investment Advisory Agreement with the Adviser, which was unanimously approved by the Company’s Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), on February 18, 2021, subject to stockholder approval of the Investment Advisory Agreement. The Company’s stockholders approved the Investment Advisory Agreement at a Special Meeting of Stockholders held on March 31, 2021.

The Investment Advisory Agreement replaced the Former Investment Advisory Agreement with PFIM, the Company's former investment adviser, which terminated effective April 20, 2021. The Investment Advisory Agreement is identical in all material respects to the Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as the Company’s investment adviser instead of PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM.

On November 5, 2021, we amended and restated the Investment Advisory Agreement to reduce the advisory fees payable thereunder, effective as of January 1, 2022 and until the one year anniversary of the listing of our common stock on a national securities exchange (the “Listing Anniversary”), as further discussed below. The Amended and Restated Advisory Agreement was unanimously approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), and became effective on January 1, 2022. Under the Amended and Restated Advisory Agreement, we reduced the base management fee from an annual rate of 1.75% to 1.20% and eliminated the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. Until such effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. The Amended and Restated Advisory Agreement has an initial two-year term and may be continued thereafter for successive one-year periods if such continuance is approved in the manner provided for under Section 15 of the 1940 Act.

Each of these investment advisory agreements is further discussed below.

Former Investment Advisory Agreement

Pursuant to the Former Investment Advisory Agreement, we paid PFIM a fee for investment advisory and management services consisting of a base management fee and an incentive fee. The cost of both the base management fee payable to PFIM and any incentive fees it earned would ultimately be borne by our stockholders.

Base Management Fee. The base management fee was calculated at an annual rate of 1.75% (0.4375% quarterly) of our average total assets, which included any borrowings for investment purposes. For the first quarter of our operations following the Merger, the base management fee was calculated based on the average value of our total assets as of the date of the Former Investment Advisory Agreement and at the end of the calendar quarter in which the date of the Former Investment Advisory Agreement fell, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Subsequently, the base management fee was payable quarterly in arrears, and was calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter was appropriately pro-rated. At PFIM’s option, the base management fee for any period could be deferred, without interest thereon, and paid to PFIM at any time subsequent to any such deferral as PFIM determined.

Incentive Fee. The incentive fee consisted of two parts: (1) the subordinated incentive fee on income and (2) the capital gains incentive fee.

Subordinated Incentive Fee on Income. The first part of the incentive fee, which is referred to as the subordinated incentive fee on income, was calculated and payable quarterly in arrears based upon our “pre-incentive fee net investment income” for the immediately preceding calendar quarter. For purposes of this fee, “pre-incentive fee net investment income” meant interest income, dividend income and distribution cash flows from equity investments and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we received) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses reimbursed under the Former Investment Advisory Agreement and the Administration Agreement, any interest expense and dividends paid on any issued and outstanding preferred shares, but excluding the organization and offering expenses and incentive fees on income and capital gains). Pre-incentive fee net investment income included, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we had not yet received in cash. Pre-incentive fee net investment income did not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. The subordinated incentive fee on income was subject to a quarterly fixed preferred return to investors, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, of 1.5% (6.0% annualized), subject to a “catch up” feature. Operating expenses were included in the calculation of the subordinated incentive fee on income.

We would pay PFIM a subordinated incentive fee on income for each calendar quarter as follows:

•No incentive fee would be payable to PFIM in any calendar quarter in which our pre-incentive fee net investment income did not exceed the preferred return rate of 1.5%.

•100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeded the preferred return but was less than or equal to 1.875% in any calendar quarter (7.5% annualized). We refer to this portion of our pre-incentive fee net investment income (which exceeded the preferred return but was less than or equal to 1.875%) as the “catch-up.” The effect of the “catch-up” provision was that, if our pre-incentive fee net investment income reached 1.875% in any calendar quarter, PFIM would receive 20.0% of our pre-incentive fee net investment income as if a preferred return did not apply.

•20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeded 1.875% in any calendar quarter (7.5% annualized) would be payable to PFIM. This reflected that once the preferred return was reached and the catch-up was achieved, 20.0% of all pre-incentive fee net investment income thereafter would be allocated to PFIM.

Capital Gains Incentive Fee. The second part of the incentive fee, which is referred to as the capital gains incentive fee, was determined and payable in arrears as of the end of each calendar year (or upon termination of the Former Investment Advisory Agreement, as of the termination date), and equaled 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year. In determining the capital gains incentive fee payable to PFIM, we would calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equaled the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed.

Aggregate realized capital losses equaled the sum of the amounts by which the aggregate net sales price of each investment was less than the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate unrealized capital depreciation equaled the sum of the differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis of such investment as of the applicable calendar year-end. At the end of the applicable calendar year, the amount of capital gains that served as the basis for our calculation of the capital gains incentive fee involved netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the aggregate unrealized capital depreciation. If this number was positive, then the capital gains incentive fee payable was equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception. Operating expenses were not taken into account when determining capital gains incentive fees.

Investment Advisory Agreement

Pursuant to the Investment Advisory Agreement, we pay the Adviser a fee for investment advisory and management services consisting of a base management fee and an incentive fee. The cost of both the base management fee payable to the Adviser and any incentive fees it earns will ultimately be borne by our stockholders. See "Amended and Restated Advisory Agreement" below for additional information.

Base Management Fee. The base management fee was calculated at an annual rate of 1.75% (0.4375% quarterly) of our average total assets, which includes any borrowings for investment purposes. For the first quarter of our operations commencing with the date of the Investment Advisory Agreement, the base management fee was calculated based on the average value of our total assets as of the date of the Investment Advisory Agreement and at the end of the calendar quarter in which the date of the Investment Advisory Agreement fell, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Subsequently, the base management fee is payable quarterly in arrears, and is calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and is appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter is appropriately pro-rated. At the Adviser’s option, the base management fee for any period may be deferred, without interest thereon, and paid to the Adviser at any time subsequent to any such deferral as the Adviser determines.

Incentive Fee. The incentive fee consisted of two parts: (1) the subordinated incentive fee on income and (2) the capital gains incentive fee.

Incentive Fee- Subordinated Incentive Fee on Income. The first part of the incentive fee, which is referred to as the subordinated incentive fee on income, is calculated and payable quarterly in arrears based upon our “pre-incentive fee net investment income” for the immediately preceding calendar quarter. For purpose of this fee “pre-incentive fee net investment income” means interest income, dividend income and distribution cash flows from equity investments and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses reimbursed under the Investment Advisory Agreement and the Administration Agreement, any interest expense and dividends paid on any issued and outstanding preferred shares, but excluding the organization and offering expenses and incentive fees on income and capital gains). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, is compared to a preferred return, or “hurdle,” of 1.5% per quarter (6.0% annualized) and a “catch-up” feature measured as of the end of each calendar quarter as discussed below. The subordinated incentive fee on income for each calendar quarter is paid to our Adviser as follows: (1) no incentive fee is payable to our Adviser in any calendar quarter in which our pre-incentive fee net investment income does not exceed the fixed preferred return rate of 1.5%; (2) 100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the fixed preferred return but is less than or equal to 1.875% in any calendar quarter (7.5% annualized); and (3) 20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 1.875% in any calendar quarter (7.5% annualized). This reflects that once the fixed preferred return is reached and the catch-up is achieved, 20.0% of all pre-incentive fee net investment income thereafter is allocated to our Adviser. These calculations are appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.

Incentive Fee- Capital Gains Incentive Fee. The second part of the incentive fee, which is referred to as the capital gains incentive fee, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year; provided that the incentive fee determined as of December 31, 2021 will be calculated for a period of shorter than twelve calendar months to take into account any net realized capital gains, if any, computed net of all realized capital losses and unrealized capital depreciation for the period commencing as of the date of the Investment Advisory Agreement and ending on December 31, 2021. In determining the capital gains incentive fee payable to our Adviser, we calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equal the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate realized capital losses equal the sum of the amounts by which the aggregate net sales price of each investment is less than the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate unrealized capital depreciation equals the sum of the differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis

of such investment as of the applicable calendar year-end. At the end of the applicable calendar year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee involves netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the aggregate unrealized capital depreciation. If this number is positive, then the capital gains incentive fee payable is equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception. Operating expenses are not taken into account when determining capital gains incentive fees.

Amended and Restated Advisory Agreement

On November 5, 2021, we amended and restated the Investment Advisory Agreement to reduce the base management fee from an annual rate of 1.75% (0.4375% quarterly) to 1.20% (0.30% quarterly) and eliminate the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. As such, until the Listing Anniversary, the base management fee will be calculated at an annual rate of 1.20% (0.30% quarterly) and the Adviser will not be entitled to any incentive fee. Following the Listing Anniversary (1) the base management fee will be calculated at an annual rate of 1.75% (0.4375% quarterly), commencing with the first base management fee calculation that occurs after such anniversary, and (2) the Adviser will be entitled to receive the same incentive fee, including the subordinated incentive fee on income and the capital gains incentive fee, as set forth in the Investment Advisory Agreement and discussed above, commencing with the first calendar quarter after such anniversary. The Amended and Restated Advisory Agreement became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. See “Investment Advisory Agreement” above.

During the three months ended September 30, 2023 and 2022, the total base management fee incurred by the Adviser was $83,359 and $112,434, respectively, which were waived by the Adviser. As of September 30, 2023 and June 30, 2023, the total base management fee due to the Adviser after the waiver was $0.

There were no incentive fees payable as of September 30, 2023 or June 30, 2023. During the three months ended September 30, 2023 and 2022, there were no incentive fees incurred.

Co-Investments

On January 13, 2020, (amended on August 2, 2022), the parent company of the Adviser received an exemptive order from the SEC (the “Order”),which superseded a prior co-investment exemptive order granted on February 10, 2014, granting the ability to negotiate terms other than price and quantity of co-investment transactions with other funds managed by the Adviser or certain affiliates, including Prospect Capital Corporation (“PSEC”) and Priority Income Fund, Inc. (“PRIS”), where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions included therein.

Under the terms of the relief permitting us to co-invest with other funds managed by our Investment Adviser or its affiliates, a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company’s independent directors must make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching of the Company or its stockholders on the part of any person concerned and (2) the transaction is consistent with the interests of the Company’s stockholders and is consistent with the Company’s investment objective and strategies. In certain situations where co-investment with one or more funds managed by the Adviser or its affiliates is not covered by the Order, such as when there is an opportunity to invest in different securities of the same issuer, the personnel of the Adviser or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. Moreover, except in certain circumstances, when relying on the Order, the Company will be unable to invest in any issuer in which one or more funds managed or owned by the Adviser or its affiliates has previously invested.                            

Officers and Directors

Certain officers and directors of the Company are also officers and directors of the Adviser and its affiliates. There were no fees paid to the independent directors of the Company as the Company did not exceed the minimum net asset value required (i.e., greater than $100 million) to receive a fee for the three months ended September 30, 2023 and 2022. The officers do not receive any direct compensation from the Company.                                                    

Expense Limitation and Expense Reimbursement Agreements                                    

Former Expense Limitation Agreement with PFIM

Concurrently with the closing of the Merger, we entered into an expense limitation agreement, dated March 31, 2019 (the "Former ELA") with PFIM. On April 30, 2020, the Company's Board of Directors approved extending the Former ELA for an

additional 12-month term ending on April 30, 2021. On and effective February 17, 2021, the Former ELA was terminated in accordance with its terms.

Pursuant to the Former ELA, PFIM, in its sole discretion, could waive a portion or all of the investment advisory fees that it was entitled to receive pursuant to the Investment Advisory Agreement in order to limit our Operating Expenses (as defined below) to an annual rate, expressed as a percentage of our average quarterly net assets, equal to 8.00% (the “Annual Limit”). For purposes of the Former ELA, the term “Operating Expenses” with respect to the Company, was defined to include all expenses necessary or appropriate for the operation of the Company, including but not limited to PFIM’s base management fee, any and all costs and expenses that qualified as line item “organization and offering” expenses in the consolidated financial statements of the Company as the same were filed with the SEC and other expenses described in the Former Investment Advisory Agreement, but did not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses (such as sales commissions, dealer manager fees, and similar expenses) were not Operating Expenses. During the three months ended September 30, 2023 and 2022, there were no base management fees incurred by PFIM.

Any amount waived pursuant to the Former ELA is subject to repayment to PFIM (a “Former ELA Reimbursement”) by us within the three years following the end of the quarter in which the waiver was made by PFIM. Although the Former ELA terminated effective February 17, 2021, PFIM maintains its right to repayment for any waiver it has made under the Former ELA, subject to the Repayment Limitations (discussed below).

A Former ELA Reimbursement can be made solely in the event that we have sufficient excess cash on hand at the time of any proposed ELA Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such quarter over the Company’s actual Operating Expenses for such quarter and (ii) the amount of Former ELA Reimbursement which, when added to the Company’s expenses for such quarter, permits the Company to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Company shares) (the “Distribution”) from the sum of (x) the Company’s net investment income (loss) for such quarter plus (y) the Company’s net realized gains (losses) for such quarter (collectively, the “Repayment Limitations”). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any Former ELA Reimbursement will be treated as an expense of the Company for such quarter, without regard to the GAAP treatment of such expense. To the extent the Company books accruals for any such reimbursements, such accruals shall be booked in accordance with GAAP.  In the event that the Company is unable to make a full payment of any Former ELA Reimbursements due for any applicable quarter because the Company does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Company for accounting purposes and shall be paid when the Company has sufficient cash on hand (subject to the Repayment Limitations); provided, that in the case of any Former ELA Reimbursements, such payment shall be made no later than the date that is three years following the end of the quarter in which the applicable waiver was made by our Adviser.

The following table provides information regarding liabilities incurred by PFIM pursuant to the Former ELA:

Period Ended		Former ELA Reimbursement Payable to PFIM		Former ELA Reimbursement Payment to PFIM	Unreimbursed Former ELA Reimbursement		Operating Expense Ratio	Annualized Distribution Rate	Eligible to be Repaid Through
September 30, 2020	(1)	$	183,386	—	$	183,386	4.33%	7.00%	September 30, 2023
December 31, 2020		—		—	—		—%	—%	N/A
March 31, 2021		—		—	—		—%	—%	N/A
June 30, 2021		—		—	—		—%	—%	N/A
Total		$	183,386		$	183,386
(1)	No longer eligible to be repaid.

Expense Limitation Agreement with the Adviser

On and effective April 20, 2021, we entered into a new expense limitation agreement with the Adviser, which replaced the Former ELA with PFIM and was amended and restated on July 7, 2021 to extend the period during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement, from September 30, 2021 to June 30, 2022 (the "First Amended and Restated ELA"). On August 23, 2022, we entered into the Second Amended and Restated Expense Limitation Agreement (the "Second Amended and Restated ELA") to extend the period during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement from June 30, 2022 to December 31, 2022. On April 24, 2023, we entered into a Third Amended and Restated Expense Limitation Agreement (the “Third Amended and Restated ELA” and, together with the First Amended and Restated ELA and the Second Amended and Restated ELA, the "New ELA") to extend the period during which the Adviser will be required to waive its investment advisory fees

under the Investment Advisory Agreement from December 31, 2022 to June 30, 2024, as discussed below. Other than this change, the terms and conditions of the Third Amended and Restated ELA are identical to those of the First and Second Amended and Restated ELAs.The New ELA has an initial term ending on June 30, 2024 and may be continued thereafter for successive one-year periods in accordance with its terms.

Pursuant to the New ELA, our Adviser waived a portion or all of the investment advisory fees that it was entitled to receive pursuant to the Investment Advisory Agreement, from the effective date of the New ELA through June 30, 2024, in order to limit our Operating Expenses (as defined below) to an annual rate, expressed as a percentage of our average quarterly net assets, equal to 8.00% (the “Annual Limit”). After June 30, 2024, such waiver may be made at our Adviser’s option and in its sole discretion. Even if the Adviser decides to voluntarily waive its investment advisory fees for a quarter ended after June 30, 2024, there is no guarantee that the Adviser will continue to do so. For purposes of the New ELA, the term “Operating Expenses” with respect to the Company, is defined to include all expenses necessary or appropriate for the operation of the Company, including but not limited to our Adviser’s base management fee, any and all costs and expenses that qualify as line item “organization and offering” expenses in the consolidated financial statements of the Company as the same are filed with the SEC and other expenses described in the Investment Advisory Agreement, but does not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses and dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses, such as sales commissions, dealer manager fees and similar expenses, are not Operating Expenses. Our Adviser waived fees, pursuant to the New ELA, in an amount of $83,359 and $112,434 for the three months ended September 30, 2023 and 2022, respectively.

Any amount waived pursuant to the New ELA is subject to repayment to our Adviser (an “ELA Reimbursement”) by us within the three years of the date on which the waiver was made by our Adviser. If the New ELA is terminated or expires pursuant to its terms, our Adviser will maintain its right to repayment for any waiver it has made under the New ELA, subject to the Repayment Limitations (discussed below).

Any ELA Reimbursement can be made solely in the event that we have sufficient excess cash on hand at the time of any proposed ELA Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such quarter over the Company’s actual Operating Expenses for such quarter and (ii) the amount of ELA Reimbursement which, when added to the Company’s expenses for such quarter, permits the Company to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of at least 6.00% (based on the gross offering prices of Company shares) (the “Distribution”) from the sum of (x) the Company’s net investment income (loss) for such quarter plus (y) the Company’s net realized gains (losses) for such quarter (collectively, the “Repayment Limitations”). For the purposes of the calculations pursuant to (i) and (ii) of the preceding sentence, any ELA Reimbursement will be treated as an expense of the Company for such quarter. In the event that the Company is unable to make a full payment of any ELA Reimbursements due for any applicable quarter because the Company does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Company for accounting purposes and shall be paid when the Company has sufficient cash on hand (subject to the Repayment Limitations); provided, that in the case of any ELA Reimbursements, such payment shall be made no later than the date that is three years after the date on which the applicable waiver was made by our Adviser.

Period Ended	ELA Reimbursement Payable to the Adviser		ELA Reimbursement Payment to the Adviser		Unreimbursed ELA Reimbursement		Operating Expense Ratio	Annualized Distribution Rate	Eligible to be Repaid Through
June 30, 2021	$	144,073	$	—	$	144,073	4.04%	8.11%	June 30, 2024
September 30, 2021	182,198		—		182,198		2.97%	7.08%	September 30, 2024
December 31, 2021	184,999		—		184,999		3.00%	7.10%	December 31, 2024
March 31, 2022	125,720		—		125,720		2.70%	7.22%	March 31, 2025
June 30, 2022	118,220		—		118,220		3.52%	7.87%	June 30, 2025
September 30, 2022	112,434		—		112,434		3.48%	7.38%	September 30, 2025
December 31, 2022	105,950		—		105,950		3.30%	7.49%	December 31, 2025
March 31, 2023	105,279		—		105,279		3.33%	7.18%	March 31, 2026
June 30, 2023	99,018		—		99,018		2.79%	6.97%	June 30, 2026
September 30, 2023	83,359		—		83,359		4.06%	7.85%	September 30, 2026
Total	$	1,261,250			$	1,261,250

License Agreement

We entered into a license agreement with an affiliate of our Adviser, pursuant to which the affiliate granted us a non-exclusive, royalty free license to use the “Prospect” name. Under this license agreement, we have the right to use such name for so long as our Adviser or another affiliate of the Adviser is our investment adviser. Other than with respect to this limited license, we have no legal right to the “Prospect” name or logo.

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DISTRIBUTIONS

3 Months Ended

Sep. 30, 2023

Equity [Abstract]

DISTRIBUTIONS

DISTRIBUTIONS

The following table reflects the cash distributions per share that the Company declared on its common stock during the three months ended September 30, 2023 and 2022: 

	Distributions
For the Three Months Ended	PFLOAT Class A Common Shares, per share		PFLOAT Class A Common Shares, Amount Distributed
September 30, 2023
July 28, 2023	$	0.03260	$	78,129
August 25, 2023	0.03260		78,313
September 29, 2023	0.04095		98,612
Total for the Three Months Ended September 30, 2023			$	255,054

	Distributions
For the Three Months Ended	PFLOAT Class A Common Shares, per share		PFLOAT Class A Common Shares, Amount Distributed
September 30, 2022
July 29, 2022	$	0.05305	$	126,365
August 26, 2022	0.04244		100,522
September 30, 2022	0.04720		112,101
Total for the Three Months Ended September 30, 2022			$	338,988

The Company has adopted an “opt in” distribution reinvestment plan for its stockholders. As a result, if the Company makes a cash distribution, its stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of the Company’s common stock. However, certain state authorities or regulators may impose restrictions from time to time that may prevent or limit a stockholder’s ability to participate in the distribution reinvestment plan.

The Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies and expense reimbursements from the Adviser. The Company has not established limits on the amount of funds it may use from available sources to make distributions.

During the three months ended September 30, 2023 and 2022 the Company's officers and directors did not purchase any shares of our stock.

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INCOME TAXES

3 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

While our fiscal year end for financial reporting purposes is June 30 of each year, our tax year end is December 31 of each year. The information presented in this footnote is based on our tax year end for each period presented, unless otherwise specified.

For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or combination thereof.

The tax character of distributions paid to the Company's shareholders during the tax years ended December 31, 2022 and 2021 were as follows:

	Tax Year Ended
	December 31, 2022			December 31, 2021
Ordinary income	$	1,195,912		$	647,336
Return of capital	131,777			926,844
Total distributions paid to stockholders	$	1,327,689	(1)	$	1,574,180	(2)

(1)    For the tax year ended December 31, 2022, $80,441 of the 2021 declared distributions are allocable to 2022 for federal income tax purposes and are reported on the 2022 Form 1099-DIV. For the tax year ended December 31, 2022, $22,758 of the 2022 declared distributions are allocable to 2023 for federal income tax purposes and will be reported on the 2023 Form 1099-DIV.

(2)    For the tax year ended December 31, 2021, $97,268 of the 2020 declared distributions are allocable to 2021 for federal income tax purposes and was reported on the 2021 Form 1099-DIV. For the tax year ended December 31, 2021, $80,441 of the 2021 declared distributions are allocable to 2022 for federal income tax purposes and are reported on the 2022 Form 1099-DIV.

For the tax year ending December 31, 2023, the tax character of distributions paid to stockholders through September 30, 2023 is expected to be ordinary income and return of capital. However, the final determination of the tax character of distributions between ordinary income and return of capital will not be made until we file our tax return for the tax year ending December 31, 2023.

As of September 6, 2022 when our prior Form 10-K was filed for the year ended June 30, 2022, we estimated our distributions for the fiscal and tax years disclosed therein to be distributions of return of capital. Subsequent to our filing date, we obtained more information from our underlying investments as to the character of the distributions for the tax year ended December 31, 2022, which resulted in changes to distributions previously disclosed in our Form 10-K filing. As a result of the change, our total distributable loss on our Consolidated Statements of Assets and Liabilities for the year ended June 30, 2022 changed from $8,511,366 to $8,489,742, with $21,624 being reclassified to return of capital from ordinary income.

The Company's cost basis of investments as of September 30, 2023 for tax purposes was $19,081,212, resulting in an estimated net unrealized loss of $1,990,492. The gross unrealized gains and losses as of September 30, 2023 were $474,796 and $2,465,288, respectively. The Company's cost basis of investments as of June 30, 2023 for tax purposes was $24,297,629, resulting in an estimated net unrealized loss of $2,382,442. The gross unrealized gains and losses as of June 30, 2023 were $481,915 and $2,864,357, respectively.

Taxable income generally differs from net increase (decrease) in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The following reconciles the net increase (decrease) in net assets resulting from operations to taxable income for the tax years ended December 31, 2022 and 2021.

	Tax Year Ended December 31, 2022		Tax Year Ended December 31, 2021
Net increase (decrease) in net assets resulting from operations	$	(3,303,225)	$	483,361
Net realized (gains) losses on investments	147,942		41,280
Net change in unrealized (gains) losses on investments	3,461,044		124,952
Other temporary book-to-tax differences	27,795		231,758
Permanent differences	155,829		318,847
Taxable income (loss) before deductions for distributions	$	489,385	$	1,200,198

Capital losses in excess of capital gains earned in a tax year may generally be carried forward and used to offset capital gains, subject to certain limitations. For the tax year ended December 31, 2022 and December 31, 2021, we had capital loss carryforwards of $4,290,349 and $4,164,261, respectively, available for use in later tax years. The unused balance each year will be carried forward and utilized as gains are realized, subject to limitations. While our ability to utilize losses in the future depends upon a variety of factors that cannot be known in advance, some of the Company’s capital loss carryforwards may become permanently unavailable due to limitations by the Code.

As of our most recent tax year ended December 31, 2022, we had no undistributed ordinary income in excess of cumulative distributions and no capital gain in excess of cumulative distributions.

	Tax Year Ended December 31, 2022
Undistributed ordinary income	$	—
Undistributed long-term capital gains	$	—
Capital loss carryforwards	$	(4,290,349)

In general, we make certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which may include merger-related items, differences in the book and tax basis of certain assets and liabilities, amortization of offering costs, expense payments, nondeductible federal excise taxes and net operating losses, among other items. During the tax year ended December 31, 2022, we increased overdistributed net investment income by $155,829 and decreased capital in excess of par value by $155,829. During the tax year ended December 31, 2021, we increased overdistributed net investment income by $318,847 and decreased capital in excess of par value by $318,847. Due to the difference between our fiscal and tax year end, the reclassifications for the taxable year ended December 31, 2022 are being recorded in the fiscal year ending June 30, 2023 and the reclassifications for the taxable year ended December 31, 2021 were recorded in the fiscal year ended June 30, 2022.

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INVESTMENT PORTFOLIO

3 Months Ended

Sep. 30, 2023

Schedule of Investments [Abstract]

INVESTMENT PORTFOLIO

INVESTMENT PORTFOLIO                                                

The original cost basis of debt placement and equity securities acquired, including follow-on investments for existing portfolio companies, payment-in-kind interest, and structuring fees, totaled $21,994 and $162 during the three months ended September 30, 2023 and 2022, respectively.The original cost basis of debt placement and equity securities disposed from noncash restructured investments totaled $997,560 and $0 during the three months ended September 30, 2023 and 2022, respectively. Debt repayments and considerations from sales of debt and equity securities, excluding noncash restructured investments, of approximately $3,641,054 and $1,358,587 were received during the three months ended September 30, 2023 and 2022, respectively. Debt repayments and considerations from sales of debt and equity securities, including noncash restructured investments, of approximately $4,638,614 and $1,358,587 were received during the three months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023 and June 30, 2023, 95% and 97%, respectively, of the Company's portfolio was invested in floating rate investments based on fair value, totaling $16,180,247 and $21,165,192, respectively. As of September 30, 2023 and June 30, 2023, 89% and 94%, respectively, of the Company's portfolio was invested in floating rate investments based on amortized cost, totaling $18,964,483 and $23,968,381, respectively.

The following tables summarize the composition of the Company’s investment portfolio at amortized cost and fair value as of September 30, 2023 and June 30, 2023:

	September 30, 2023
	Investments at Amortized Cost(1)		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Senior Secured Loans-First Lien	$	11,590,740	$	10,768,957	63	%
Senior Secured Loans-Second Lien	1,777,299		1,378,000		8	%
Senior Secured Notes	752,749		290,152		2	%
Structured Subordinated Notes	5,596,444		4,033,290		24	%
Equity/Other	1,667,943		620,319		3	%
Total Portfolio Investments	$	21,385,175	$	17,090,718	100	%
	June 30, 2023
	Investments at Amortized Cost(1)		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Senior Secured Loans-First Lien	$	16,445,667	$	15,362,386	70	%
Senior Secured Loans-Second Lien	1,758,303		1,416,049		7	%
Senior Secured Notes	752,867		271,899		1	%
Structured Subordinated Notes	5,764,411		4,386,757		20	%
Equity/Other	670,383		478,096		2	%
Total Portfolio Investments	$	25,391,631	$	21,915,187	100	%
(1) Amortized cost represents the original cost adjusted for PIK interest and the amortization of premiums and/or accretion of discounts, as applicable, on investments.

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of September 30, 2023 and June 30, 2023:

	September 30, 2023
Industry	Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	4,033,290	24	%
Healthcare & Pharmaceuticals	2,528,662		15	%
Services: Business	2,381,446		14	%
Telecommunications	2,287,216		13	%
Media: Diversified and Production	1,378,000		8	%
Services: Consumer	1,360,476		8	%
Media: Broadcasting & Subscription	975,050		6	%
Beverage, Food & Tobacco	$	938,763	5	%
Wholesale	865,844		5	%
Financial	290,152		2	%
Consumer goods: Non-Durable	42,300		—	%
Retail	9,519		—	%
Total	$	17,090,718	100	%
	June 30, 2023
Industry	Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	4,386,757	20	%
Healthcare & Pharmaceuticals	2,880,134		13	%
Services: Consumer	2,741,742		13	%
Services: Business	2,507,919		11	%
Telecommunications	2,324,213		11	%
Wholesale	1,662,469		8	%
Media: Diversified and Production	1,416,049		7	%
Media: Broadcasting & Subscription	971,690		4	%
Beverage, Food & Tobacco	920,151		4	%
Consumer goods: Durable	678,492		3	%
Consumer goods: Non-Durable	669,880		3	%
Automotive	470,696		2	%
Financial	271,899		1	%
Retail	13,096		—	%
Total	$	21,915,187	100	%

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FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the fair value of our investments that are measured at fair value on a recurring basis disaggregated into the three levels of the ASC 820 valuation hierarchy as of September 30, 2023 and June 30, 2023, respectively:

	As of September 30, 2023
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Senior Secured Loans-First Lien	$	—	$	1,604,613	$	9,164,344	$	10,768,957
Senior Secured Loans-Second Lien	—		—		1,378,000		1,378,000
Senior Secured Notes	—		—		290,152		290,152
Structured Subordinated Notes	—		—		4,033,290		4,033,290
Equity/Other	—		—		620,319		620,319
Total Portfolio Investments	$	—	$	1,604,613	$	15,486,105	$	17,090,718
	As of June 30, 2023
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Senior Secured Loans-First Lien	$	—	$	2,129,472	$	13,232,914	$	15,362,386
Senior Secured Loans-Second Lien	—		—		1,416,049		1,416,049
Senior Secured Notes	—		—		271,899		271,899
Structured Subordinated Notes	—		—		4,386,757		4,386,757
Equity/Other	—		—		478,096		478,096
Total Portfolio Investments	$	—	$	2,129,472	$	19,785,715	$	21,915,187

Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, management and the independent valuation firm look at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. These investments are classified as Level 1 or Level 2 in the fair value hierarchy.

The fair value of debt investments specifically classified as Level 2 in the fair value hierarchy are generally valued by an independent pricing agent or more than one principal market maker, if available, otherwise a principal market maker or a primary market dealer. We generally value over-the-counter securities by using the prevailing bid and ask prices from dealers during the relevant period end, which were provided by an independent pricing agent and screened for validity by such service.

In determining the range of values for debt instruments where market quotations are not available, and are therefore classified as Level 3 in the fair value hierarchy, except CLOs and debt investments in controlling portfolio companies, management and the independent valuation firm estimated corporate and security credit ratings and identified corresponding yields to maturity for each loan from relevant market data. A discounted cash flow technique was then applied using the appropriate yield to maturity as the discount rate, to determine a range of values. In determining the range of values for equity investments of portfolio companies , the enterprise value was determined by applying a market approach such as using earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, net income and/or book value multiples for similar guideline public companies and/or similar recent investment transactions and/or an income approach, such as the discounted cash flow technique. The enterprise value technique may also be used to value debt investments which are credit impaired. For stressed debt and equity investments, asset recovery analysis was used.

In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, which consider relevant data in the CLO market and certain benchmark credit indices, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and

assess the reasonableness of the implied discount rate that would be effective for the value derived from the corresponding multi-path cash flow model.

Our portfolio consists of residual interests in CLOs, which involve a number of significant risks. CLOs are typically very highly levered (10 - 14 times), and therefore the residual interest tranches that we invest in are subject to a higher degree of risk of total loss. In particular, investors in CLO residual interests indirectly bear risks of the underlying loan investments held by such CLOs. We generally have the right to receive payments only from the CLOs, and generally do not have direct rights against the underlying borrowers or the entity that sponsored the CLOs. While the CLOs we target generally enable the investor to acquire interests in a pool of senior loans without the expenses associated with directly holding the same investments, the prices of indices and securities underlying our CLOs will rise or fall. These prices (and, therefore, the prices of the CLOs) will be influenced by the same types of political and economic events that affect issuers of securities and capital markets generally. The failure by a CLO investment in which we invest to satisfy financial covenants, including with respect to adequate collateralization and/or interest coverage tests, could lead to a reduction in its payments to us. In the event that a CLO fails certain tests, holders of debt senior to us would be entitled to additional payments that would, in turn, reduce the payments we would otherwise be entitled to receive. Separately, we may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting CLO or any other investment we may make. If any of these occur, it could materially and adversely affect our operating results and cash flows.

The interests we have acquired in CLOs are generally thinly traded or have only a limited trading market. CLOs are typically privately offered and sold, even in the secondary market. As a result, investments in CLOs may be characterized as illiquid securities. In addition to the general risks associated with investing in debt securities, CLO residual interests carry additional risks, including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) our investments in CLO tranches will likely be subordinate to other senior classes of note tranches thereof; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the CLO investment or unexpected investment results. Our net asset value may also decline over time if our principal recovery with respect to CLO residual interests is less than the cost of those investments. Our CLO investments and/or the CLOs’ underlying senior secured loans may prepay more quickly than expected, which could have an adverse impact on our value. These investments are classified as Level 3 in the fair value hierarchy.

An increase in interest rates would materially increase the CLO’s financing costs. Since most of the collateral positions within the CLOs have interest rate floors, there may not be corresponding increases in investment income (if interest rates increase but stay below the interest rate floor of such investments) resulting in materially smaller distribution payments to the residual interest investors.

We hold more than a 10% interest in certain foreign corporations that are treated as controlled foreign corporations (“CFC”) for U.S. federal income tax purposes (including our residual interest tranche investments in CLOs). Therefore, we are treated as receiving a deemed distribution (taxable as ordinary income) each year from such foreign corporations in an amount equal to our pro rata share of the corporation’s income for that tax year (including both ordinary earnings and capital gains). We are required to include such deemed distributions from a CFC in our taxable income and we are required to distribute at least 90% of such income to maintain our RIC status, regardless of whether or not the CFC makes an actual distribution during such year.

If we acquire shares in “passive foreign investment companies” (“PFICs”) (including residual interest tranche investments in CLOs that are PFICs), we may be subject to federal income tax on a portion of any “excess distribution” or gain from the disposition of such shares even if such income is distributed as a taxable dividend to our stockholders. Certain elections may be available to mitigate or eliminate such tax on excess distributions, but such elections (if available) will generally require us to recognize our share of the PFIC’s income for each year regardless of whether we receive any distributions from such PFICs. We must nonetheless distribute such income to maintain our status as a RIC.

Legislation known as FATCA and regulations thereunder impose a withholding tax of 30% on payments of U.S. source interest and dividends to certain non-U.S. entities, including certain non-U.S. financial institutions and investment funds, unless such non-U.S. entity complies with certain reporting requirements regarding its United States account holders and its United States owners. Most CLOs in which we invest will be treated as non-U.S. financial entities for this purpose, and therefore will be required to comply with these reporting requirements to avoid the 30% withholding. If a CLO in which we invest fails to properly comply with these reporting requirements, it could reduce the amounts available to distribute to residual interest and junior debt holders in such CLO vehicle, which could materially and adversely affect our operating results and cash flows.

If we are required to include amounts in income prior to receiving distributions representing such income, we may have to sell some of our investments at times and/or at prices management would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities for this purpose.

A portion of the Company’s portfolio is concentrated in CLOs, which is subject to a risk of loss if that sector experiences a market downturn. The Company is subject to credit risk in the normal course of pursuing its investment objectives. The Company’s maximum risk of loss from credit risk for the portfolio of CLO investments is the inability of the CLOs collateral managers to return up to the cost value due to defaults occurring in the underlying loans of the CLOs.                                                 

Investments in CLOs residual interests generally offer less liquidity than other investment grade or high-yield corporate debt, and may be subject to certain transfer restrictions. The Company’s ability to sell certain investments quickly in response to changes in economic and other conditions and to receive a fair price when selling such investments may be limited, which could prevent the Company from making sales to mitigate losses on such investments. In addition, CLOs are subject to the possibility of liquidation upon an event of default of certain minimum required coverage ratios, which could result in full loss of value to the CLOs interests and junior debt investors.

The fair value of the Company’s investments may be significantly affected by changes in interest rates. The Company’s investments in senior secured loans through CLOs are sensitive to interest rate levels and volatility. In the event of a significant rising interest rate environment and/or economic downturn, loan defaults may increase and result in credit losses which may adversely affect the Company’s cash flow, fair value of its investments and operating results. In the event of a declining interest rate environment, a faster than anticipated rate of prepayments is likely to result in a lower than anticipated yield.

The significant unobservable input used to value our investments based on the yield technique and discounted cash flow technique is the market yield (or applicable discount rate) used to discount the estimated future cash flows expected to be received from the underlying investment, which includes both future principal and interest/dividend payments. Increases or decreases in the market yield (or applicable discount rate) would result in a decrease or increase, respectively, in the fair value measurement. Management and the independent valuation firms may consider the following factors when selecting market yields or discount rates: risk of default, rating of the investment and comparable company investments, and call provisions.

The significant unobservable inputs used to value our investments based on the EV analysis may include market multiples of specified financial measures such as EBITDA, net income, or book value of identified guideline public companies, implied valuation multiples from precedent M&A transactions, and/or discount rates applied in a discounted cash flow technique. The independent valuation firm identifies a population of publicly traded companies with similar operations and key attributes to that of the portfolio company. Using valuation and operating metrics of these guideline public companies and/or as implied by relevant precedent transactions, a range of multiples of the latest twelve months EBITDA, or other measure such as net income or book value, is typically calculated. The independent valuation firm utilizes the determined multiples to estimate the portfolio company’s EV generally based on the latest twelve months EBITDA of the portfolio company (or other meaningful measure). Increases or decreases in the multiple would result in an increase or decrease, respectively, in EV which would result in an increase or decrease in the fair value measurement of the debt of controlled companies and/or equity investment, as applicable. In certain instances, a discounted cash flow analysis may be considered in estimating EV, in which case, discount rates based on a weighted average cost of capital and application of the capital asset pricing model may be utilized.

Changes in market yields, discount rates, EBITDA multiples, each in isolation, may change the fair value measurement of certain of our investments. Generally, an increase in market yields, discount rates, or a decrease in EBITDA (or other) multiples may result in a decrease in the fair value measurement of certain of our investments.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations.

Changes in Valuation Techniques

During the three months ended September 30, 2023, the valuation methodology for DTI Holdco, Inc. (“DTI Holdco”) for the First Lien Term Loan changed from using a combination of the yield method approach and market quotes to solely using market quotes, since market quotes were more active in the current period. As a result of a tightening credit market spreads and an increase in the quoted price of the First Lien Term Loan, the fair value of our investment in DTI Holdco increased to $738,769 as of September 30, 2023, a premium of $14,068 from its amortized cost, compared to the $(17,735) unrealized depreciation recorded at June 30, 2023.

The following table shows industries that comprise of greater than 10% of our portfolio at fair value as of September 30, 2023 and June 30, 2023:

	September 30, 2023
	Cost		Fair Value		% of Portfolio
Healthcare & Pharmaceuticals	$	2,463,150	$	2,528,662	15	%
Services: Business	2,638,746		2,381,446		14	%
Telecommunications	2,284,841		2,287,216		13	%
All Other Industries	13,998,438		9,893,394		58	%
Total	$	21,385,175	$	17,090,718	100	%

	June 30, 2023
	Cost		Fair Value		% of Portfolio
Healthcare & Pharmaceuticals	$	2,942,734	$	2,880,134	13	%
Services: Consumer	3,004,329		2,741,742		13	%
Services: Business	2,647,846		2,507,919		11	%
Telecommunications	2,283,486		2,324,213		11	%
All Other Industries	14,513,236		11,461,179		52	%
Total	$	25,391,631	$	21,915,187	100	%

As of September 30, 2023, investments in California, Tennessee, and Texas comprised 13.8%, 11.5% and 11.0%, respectively, of our investments at fair value, with a cost of $2,750,213, $1,990,793 and $1,873,189, respectively, and a fair value of $2,353,050, $1,960,162 and $1,877,365, respectively. As of June 30, 2023 investments in Tennessee, California and Connecticut comprised, 12.0%, 10.9% and 10.3%, respectively, of our investments at fair value, with a cost of $2,698,856, $2,735,828 and $2,395,186, respectively, and a fair value of , $2,626,623, $2,387,739 and $2,264,823, respectively.

The following is a reconciliation for the three months ended September 30, 2023 and 2022 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

	Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
	Senior Secured Loans - First Lien		Senior Secured Loans - Second Lien		Senior Secured Notes		Structured Subordinated Notes		Equity/Other		Total
Fair Value at June 30, 2023	$	13,232,914	$	1,416,049	$	271,899	$	4,386,757	$	478,096	$	19,785,715
Net realized gains (losses) on investments	(82,766)		—		—		—		—		(82,766)
Net change in unrealized gains (losses) on investments	(234,162)		(57,046)		18,370		(185,499)		(855,337)		(1,313,674)
Net realized and unrealized gains (losses) on investments	(316,928)		(57,046)		18,370		(185,499)		(855,337)		(1,396,440)
Restructuring of investments	(669,880)		—		—		—		997,560		327,680
Payment-in-kind interest	—		21,994		—		—		—		21,994
Accretion (amortization) of purchase discount and premium, net	645		(2,997)		(117)		(167,968)		—		(170,437)
Repayments and sales of portfolio investments	(2,372,308)		—		—		—		—		(2,372,308)
Transfers into Level 3(1)	—		—		—		—		—		—
Transfers out of Level 3(1)	(710,099)		—		—		—		—		(710,099)
Fair Value at September 30, 2023	$	9,164,344	$	1,378,000	$	290,152	$	4,033,290	$	620,319	$	15,486,105
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	$	(304,434)	$	(57,046)	$	18,370	$	(185,499)	$	(855,337)	$	(1,383,946)
(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the quarter ended September 30, 2023, one of our first lien loans transferred out of Level 3 to Level 2 due to a more significant level of market activity during the period and thus this investment was valued using observable inputs such as trades from an independent pricing service.

	Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
	Senior Secured Loans - First Lien		Senior Secured Loans - Second Lien		Structured Subordinated Notes		Equity/Other		Total
Fair Value at June 30, 2022	$	19,951,625	$	511,464	$	5,126,749	$	641,000	$	26,230,838
Net realized gains on investments	—		—		—		—		—
Net change in unrealized gains (losses) on investments	(225,003)		(18,186)		(150,209)		(77,522)		(470,920)
Net realized and unrealized gains (losses) on investments	(225,003)		(18,186)		(150,209)		(77,522)		(470,920)
Payment-in-kind interest	—		162		—		—		162
Accretion (amortization) of purchase discount and premium, net	15,191		2,402		(74,056)		—		(56,463)
Repayments and sales of portfolio investments	(1,310,252)		(13,342)		—		(10,728)		(1,334,322)
Transfers into Level 3(1)	1,702,829		—		—		—		1,702,829
Transfers out of Level 3(1)	(1,407,887)		—		—		—		(1,407,887)
Fair Value at September 30, 2022	$	18,726,503	$	482,500	$	4,902,484	$	552,750	$	24,664,237
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	$	(236,930)	$	(19,070)	$	(150,209)	$	(77,522)	$	(483,731)
(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the quarter ended September 30, 2022, one of our first lien loans transferred out of Level 2 to Level 3 due to a less significant level of market activity during the period and thus for these investments there were less observable inputs such as trades from independent pricing services. During the quarter ended September 30, 2022, one of our first lien loans transferred out of Level 3 to Level 2 due to a more significant level of market activity during the period and thus this investment was valued using observable inputs such as trades from an independent pricing service.

The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of September 30, 2023:

				Unobservable Inputs
Asset Category	Fair Value		Primary Valuation Technique	Inputs	Range				Weighted Average
Senior Secured First Lien Debt	$	331,071	Sensitivity Analysis (Current Value Method)	Enterprise Values	5.50x	to	6.50x		6.00x
Senior Secured First Lien Debt	8,833,273		Discounted Cash Flow (Yield Analysis)	Market Yield	9.63%	to	19.25%		13.81%
Senior Secured Second Lien Debt	1,378,000		Discounted Cash Flow (Yield Analysis)	Market Yield	14.67%	to	14.98%		14.83%
Senior Secured Notes	290,152		Discounted Cash Flow (Yield Analysis)	Market Yield	32.75%	to	33.34%		33.04%
Equity/Other	620,319		Enterprise Value Waterfall (Market Approach)	EBITDA multiples (x)	0.40x	to	9.25x		7.91x
Subordinated Structured Notes	4,033,290		Discounted Cash Flow	Discount Rate	17.14%	to	32.91%	(1)	24.83%	(1)
	$	15,486,105
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.

The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of June 30, 2023:

				Unobservable Inputs
Asset Category	Fair Value		Primary Valuation Technique	Inputs	Range				Weighted Average
Senior Secured First Lien Debt	$	499,544	Sensitivity Analysis (Current Value Method)	Enterprise Values	4.00x	to	5.00x		5.00x
Senior Secured First Lien Debt	12,733,370		Discounted Cash Flow (Yield Analysis)	Market Yield	8.91%	to	20.07%		13.12%
Senior Secured Second Lien Debt	1,416,049		Discounted Cash Flow (Yield Analysis)	Market Yield	16.00%	to	16.70%		16.4%
Senior Secured Notes	271,899		Discounted Cash Flow (Yield Analysis)	Market Yield	33.96%	to	34.28%		34.12%
Equity/Other	478,096		Enterprise Value Waterfall (Market Approach)	EBITDA multiples (x)	5.25x	to	9.25x		8.42x
Subordinated Structured Notes	4,386,757		Discounted Cash Flow	Discount Rate	8.35%	to	33.78%	(1)	24.04%	(1)
	$	19,785,715
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.

For the three months ended September 30, 2023 and 2022, there were no structuring fees recognized as part of interest income on the Consolidated Statements of Operations. For the three months ended September 30, 2023 and 2022, there were accelerated original issue discounts due to repayments of $0 and $3,020, respectively, included in interest income. For the three months ended September 30, 2023 and 2022, there was no early repayment income included in interest income.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

The Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. Management has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote.

The Company has a conditional obligation to reimburse the Adviser and PFIM for any amounts funded by the Adviser and PFIM under the Expense Limitation Agreement and Former Expense Limitation Agreement for any payments made by the Adviser and PFIM, respectively. The Expense Limitation Agreement and Former Expense Limitation Agreement payments are subject to repayment by the Company within the three years following the end of the quarter in which the payment was made

by the Adviser or PFIM; provided that any such repayments shall be subject to the then-applicable expense limitation, if any, and the limit that was in effect at the time when the Adviser or PFIM made the payment that is subject to repayment.

The Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings are threatened against the Company. 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. While the outcome of any legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material adverse effect upon its financial condition or results of operations.

As of September 30, 2023 and June 30, 2023, there was no unfunded commitment made by the Company.

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REVOLVING CREDIT FACILITIES

3 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

REVOLVING CREDIT FACILITIES

REVOLVING CREDIT FACILITIES

On May 16, 2019, the Company established a $50 million senior secured revolving credit facility (the “Credit Facility”) with Royal Bank of Canada, a Canadian chartered bank, acting as administrative agent. In connection with the Credit Facility, the SPV, as borrower, and each of the other parties thereto entered into a Revolving Loan Agreement, dated as of May 16, 2019 (the “Loan Agreement”).

The Credit Facility had a maturity of May 21, 2029 and, initially, bore interest at a rate of three-month LIBOR plus 1.55%. On May 11, 2020, in connection with an extension of the ramp period for the Credit Facility from May 15, 2020 to November 15, 2020, the Company agreed to the increased interest rate of three-month LIBOR plus 2.20% on the Credit Facility for the period from May 16, 2020 through November 15, 2020. Effective November 10, 2020, the end date of the ramp period of the Credit Facility was extended again, from November 15, 2020 to May 14, 2021. As a result, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended through May 14, 2021. On May 11, 2021, the end date of the ramp period of the Credit Facility was further extended from May 14, 2021 to November 15, 2021. As a result, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended through November 15, 2021. On August 26, 2021, the end date of the ramp period of the Credit Facility was further extended from November 15, 2021 to August 25, 2022. In exchange, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended permanently. On July 6, 2022, the end date of the ramp period of the Credit Facility was further extended from August 25, 2022 to August 25, 2023. In connection with such extension, the interest rate on borrowings under the Credit Facility was amended from three-month LIBOR plus 2.20% to Secured Overnight Financing Rate (“SOFR”) plus 2.20%. On March 24, 2023, (i) the end date of the ramp period of the Credit Facility was further extended from August 25, 2023 to October 25, 2023 and (ii) the Loan Agreement was amended to require sales of collateral and/or receipt of capital contributions in a combined amount to have generated proceeds (on a trade date basis) (x) during the period from March 24, 2023 through April 30, 2023, in the Initial Amount (the "Initial Amount") of $4,000,000, and (y) during each month thereafter in an amount equal to $2,000,000 (the "Required Amount") with any amount in excess of the total Required Amount plus the Initial Amount contributing to the Required Amount for the next month. In connection with such extension and amendment, the interest rate on borrowings under the Credit Facility was reduced from SOFR plus 2.20% to SOFR plus 1.55%. The Credit Facility was secured by substantially all of the SPV’s properties and assets. Under the Loan Agreement, the SPV made certain customary representations and warranties and was required to comply with various covenants, including reporting requirements and other customary requirements for similar credit facilities. The Loan Agreement included usual and customary events of default for credit facilities of this nature. On November 7, 2022, Royal Bank of Canada granted a waiver of any non-compliance with certain waterfall provisions in the Loan Agreement that may have occurred prior to November 7, 2022. Further non-compliance with certain waterfall provisions was permitted through January 31, 2023.

On September 21, 2023, the Company entered into a senior secured revolving credit agreement (the "Senior Secured Revolving Credit Facility"), by and among the Company, as borrower, the lenders party thereto, and Sumitomo Mitsui Banking Corporation, as administrative agent. In conjunction with the closing of the Senior Secured Revolving Credit Facility, we terminated the Credit Facility. As of September 30, 2023, there was a $6,200,000 balance on the Senior Secured Revolving Credit Facility.

As of September 30, 2023 and June 30, 2023, we had $0 and $8,600,000, respectively, outstanding on our Credit Facility. As of September 30, 2023 and June 30, 2023, the investments used as collateral for the Credit Facility had an aggregate fair value of $0 and $16,278,891, respectively, which represents 0% and 74% of our total investments for each period, respectively. These securities are not available as collateral to the Company's general creditors. As of September 30, 2023 and June 30, 2023, cash balances of $0 and $61,833, respectively, were used as collateral for the Credit Facility.

In connection with the origination of the Credit Facility, we incurred $636,342 in fees, all of which were amortized over the term of the facility. As of September 30, 2023 and June 30, 2023, $0 and $230,022, respectively, remains to be amortized and is reflected as deferred financing costs on the Consolidated Statements of Assets and Liabilities.

During the three months ended September 30, 2023 and 2022, we recorded $230,022 and $269,258 respectively, of interest costs and amortization of financing costs on the Credit Facility as interest expense. During the three months ended September 30, 2023 and 2022, we realized a loss on the extinguishment of debt in the amount of $(66,844) and $0, respectively.

The Senior Secured Revolving Credit Facility provides for borrowings in U.S. dollars and certain agreed upon foreign currencies in an initial aggregate amount of up to $20,000,000 with an option for the Company to request, at one or more times, that existing and/or new lenders, at their election, provide up to $150,000,000 in aggregate. The Senior Secured Revolving Credit Facility provides for swingline loans in an aggregate principal amount at any time outstanding that will not exceed $5,000,000. Availability under the Senior Secured Revolving Credit Facility will terminate on the earlier of the Commitment Termination Date of September 19, 2025 or the date of termination of the revolving commitments thereunder, and the outstanding loans under the Senior Secured Revolving Credit Facility will mature on September 21, 2026. The Senior Secured Revolving Credit Facility also requires mandatory prepayment of interest and principal upon certain events, including after the date of termination of the revolving commitments thereunder from asset sales, extraordinary receipts, returns of capital, equity issuances, and incurrence of indebtedness, with certain exceptions and minimum amount thresholds.

Borrowings under the Senior Secured Revolving Credit Facility are subject to compliance with a borrowing base test. Amounts drawn under the Senior Secured Revolving Credit Facility in U.S. dollars will bear interest at either term SOFR plus a credit spread adjustment of 0.10% plus 2.5%, or the prime rate plus 1.5%. The Company may elect either the term SOFR or prime rate at the time of drawdown, and loans denominated in U.S. dollars may be converted from one rate to another at any time at the Company’s option, subject to certain conditions. Amounts drawn under the Senior Secured Revolving Credit Facility in other permitted currencies will bear interest at the relevant rate specified therein plus 2.5%.

During the period commencing on September 21, 2023 and ending on the earlier of the Commitment Termination Date or the date of termination of the revolving commitments under the Senior Secured Revolving Credit Facility, the Company will pay a commitment fee of 0.375% per annum (based on the immediately preceding quarter’s average usage) on the daily unused amount of the commitments then available thereunder.

In connection with the Senior Secured Revolving Credit Facility, the Company has made certain representations and warranties and must comply with various covenants and reporting requirements customary for facilities of this type. In addition, the Company must comply with the following financial covenants with respect to the Company and its consolidated subsidiaries: (a) the Company must maintain a minimum shareholders’ equity, measured as of each fiscal quarter end; and (b) the Company must maintain at all times an asset coverage ratio not less than 150%.

The Senior Secured Revolving Credit Facility contains events of default customary for facilities of this type. Upon the occurrence of an event of default, the Administrative Agent, at the request of the required lenders, may terminate the commitments and declare the outstanding advances and all other obligations under the Senior Secured Revolving Credit Facility immediately due and payable.

The Company’s obligations under the Senior Secured Revolving Credit Facility are guaranteed by Prospect Flexible Funding, LLC, a subsidiary of the Company, and will be guaranteed by certain domestic subsidiaries of the Company that are formed or acquired by the Company in the future. The Company’s obligations under the Senior Secured Revolving Credit Facility are secured by a first priority security interest in substantially all of the assets of the Company and certain of the Company’s subsidiaries.

During the three months ended September 30, 2023, the Company entered into the Senior Secured Revolving Credit Facility. As of September 30, 2023, we had $6,200,000 outstanding on our Senior Secured Revolving Credit Facility. As of September 30, 2023, the investments used as collateral for the Senior Secured Revolving Credit Facility had an aggregate fair value of $17,090,718, which represents 100% of our total investments for the period. As of September 30, 2023, cash balances of $1,448,540 were used as collateral for the Senior Secured Revolving Credit Facility. The fair value of the Senior Secured Revolving Credit Facility was $6,200,000 and is categorized as Level 2 under ASC 820 as of September 30, 2023. The fair value of the Senior Secured Revolving Credit Facility is equal to its carrying value as the Senior Secured Revolving Credit Facility is repriced to a market rate of interest frequently.

In connection with the origination of the Senior Secured Revolving Credit Facility, we incurred $884,762 in fees, all of which are being amortized over the term of the Senior Secured Revolving Credit Facility. As of September 30, 2023, $877,497 remains to be amortized and is reflected as deferred financing costs on the Consolidated Statements of Assets and Liabilities.

During the three months ended September 30, 2023, we recorded $60,191 of interest costs and amortization of financing costs on the Senior Secured Revolving Credit Facility as interest expense.

For the three months ended September 30, 2023 and 2022,  the average stated interest rate (i.e., rate in effect plus the spread) was 7.50% and 5.03%, respectively, under the Senior Secured Revolving Credit Facility and Credit Facility. For the three

months ended September 30, 2023 and 2022, average outstanding borrowings under the Senior Secured Revolving Credit Facility and Credit Facility was $6,409,677 and $20,103,261, respectively.

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FINANCIAL HIGHLIGHTS

3 Months Ended

Sep. 30, 2023

Investment Company [Abstract]

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights for each of the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30,
	2023			2022
	(unaudited)			(unaudited)
Per Share Data(a):
Net asset value at beginning of period	$	6.10		$	7.03
Net investment income (loss)	(0.09)			0.03
Net realized and unrealized (losses) on investments	(0.43)			(0.25)
Net realized (losses) on extinguishment of debt	(0.03)			—
Net decrease in net assets resulting from operations	(0.55)			(0.22)
Distributions(b)
Return of capital distributions	(0.11)			(0.04)
Distributions from net investment income	—			(0.10)
Total Distributions	(0.11)			(0.14)
Other (c)	—			—
Net asset value at end of period	$	5.44		$	6.67
Total return based on net asset value (d)	(9.26)		%	(3.16)		%
Supplemental Data:
Net assets at end of period	$	13,106,824		$	15,845,448
Average net assets	$	13,900,344		$	16,273,212
Average shares outstanding	2,404,057			2,375,375
Ratio to average net assets:
Total annual expenses(e)	24.48		%	20.56		%
Total annual expenses (after expense limitation agreement)(e)	22.09		%	17.79		%
Net investment income (loss)(e)	(6.4)		%	1.76		%
Portfolio Turnover	—		%	—		%
(a) Calculated based on weighted average shares outstanding.
(b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01.
(c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the period.
(d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the period and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded. Total return has not been annualized.
(e) Annualized for the three months ended September 30, 2023 and 2022.

The following is a schedule of financial highlights for each of the five years ended in the period ended June 30, 2023:

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2023			June 30, 2022			June 30, 2021			June 30, 2020			June 30, 2019(e)
Per Share Data(a):
Net asset value at beginning of year	7.03			$	8.36		$	8.28		$	9.88		$	9.89
Net investment income (loss)	0.2			0.31			(0.08)			0.24			0.91
Net realized and unrealized (losses) gains on investments	(0.65)			(1.05)			0.82			(1.22)			(1.11)
Net increase (decrease) in net assets resulting from operations	(0.45)			(0.74)			0.74			(0.98)			(0.20)
Distributions(b)
Return of capital distributions(f)	(0.13)			(0.16)			(0.46)			(0.57)			(0.54)
Distributions from net investment income(f)	(0.35)			(0.43)			(0.19)			(0.15)			(0.03)
Total Distributions	(0.48)			(0.59)			(0.65)			(0.72)			(0.57)
Offering costs	—			—			—			—			0.61
Other (c)	—			—			(0.01)			0.10			0.15
Net asset value at end of year	6.10			$	7.03		$	8.36		$	8.28		$	9.88
Total return based on net asset value (d)	(6.67)		%	(9.60)		%	9.03		%	(10.13)		%	7.52		%
Supplemental Data:
Net assets at end of year	$	14,693,862		$	16,700,975		$	19,947,807		$	19,558,400		$	23,410,715
Average net assets	$	15,303,274		$	18,912,658		$	20,055,524		$	21,234,189		$	12,536,923
Average shares outstanding	283,649			2,380,229			2,377,461			2,366,005			1,297,582
Ratio to average net assets:
Total annual expenses	21.06		%	15.70		%	20.07		%	16.41		%	23.48		%
Total annual expenses (after expense support agreement/expense limitation agreement)	18.3		%	12.47		%	18.44		%	13.07		%	9.11		%
Net investment income (loss)	3.2		%	3.95		%	(0.93)		%	2.67		%	2.15		%
Portfolio Turnover	—		%	35.34		%	17.83		%	24.56%			93.42		%
(a) Calculated based on weighted average shares outstanding.
(b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01.
(c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the year.
(d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the year and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded.
(e) Data presented for the year ended June 30, 2019 includes the shareholder activity of PWAY Class A and Class I shares, prior to the Merger and conversion into shares of the Company. The net asset value per share at beginning of year has been adjusted by the exchange ratio used in the Merger.
(f) The amounts reflected for the year ended June 30, 2022 have not been finalized. The amounts reflected for the year ended June 30, 2021 were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2021. Certain reclassifications have been made in the presentation of prior period amounts. See Note 2 and Note 6 within the accompanying notes to the consolidated financial statements for further discussion.

Information about our senior securities is shown in the following table since June 30, 2019. As of September 30, 2023 and June 30, 2023, our asset coverage ratio stood at 311% and 271%, respectively, based on the outstanding principal amount of our senior securities representing indebtedness.

Revolving Credit Facility	Total Amount Outstanding		Asset Coverage per Unit(1)		Involuntary Liquidating Preference per Unit(2)	Average Market Value per Unit(2)
September 30, 2023	$	6,200,000	$	3,114	—	—
June 30, 2023	$	8,600,000	$	2,709	—	—
March 31, 2023	$	15,477,000	$	1,937	—	—
December 31, 2022	$	17,800,000	$	1,830	—	—
September 30, 2022	$	20,000,000	$	1,792	—	—
June 30, 2022	$	20,500,000	$	1,815	—	—
March 31, 2022	$	21,000,000	$	1,895	—	—
December 31, 2021	$	21,000,000	$	1,924	—	—
September 30, 2021	$	21,000,000	$	1,938	—	—
June 30, 2021	$	21,000,000	$	1,950	—	—
March 31, 2021	$	21,000,000	$	1,971	—	—
December 31, 2020	$	21,000,000	$	1,976	—	—
September 30, 2020	$	21,000,000	$	1,947	—	—
June 30, 2020	$	21,000,000	$	1,931	—	—
March 31, 2020	$	21,000,000	$	1,914	—	—
December 31, 2019	$	21,000,000	$	2,018	—	—
September 30, 2019	$	15,500,000	$	2,461	—	—
June 30, 2019	$	5,500,000	$	5,256	—	—
(1) The asset coverage ratio is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit.
(2) This column is inapplicable.

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NET INCREASE (DECREASE) IN NET ASSETS PER SHARE

3 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

NET INCREASE (DECREASE) IN NET ASSETS PER SHARE

NET INCREASE (DECREASE) IN NET ASSETS PER SHARE                                    

The following information sets forth the computation of net increase in net assets resulting from operations per share during the three months ended September 30, 2023 and 2022.

 

	Three Months Ended September 30,
	2023		2022
Net decrease in net assets resulting from operations	$	(1,322,420)	$	(517,315)
Weighted average common shares outstanding	2,404,057		2,375,375
Net decrease in net assets resulting from operations per share	$	(0.55)	$	(0.22)

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SUBSEQUENT EVENTS

3 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Management has evaluated all known subsequent events through the date of issuance of these consolidated financial statements and notes the following:        

Issuance of Common Stock

For the period beginning October 1, 2023 and ending November 14, 2023, the Company issued 12,765 shares pursuant to its distribution reinvestment plan in the amount of $77,740.    

Repurchase Offer

On September 28, 2023, under our share repurchase program, we made a tender offer to purchase up to the number of shares of our issued and outstanding Class A common stock we could repurchase with the cash we retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan to those shareholders who elected to receive their distributions in the form of additional shares rather than in cash. The total cash retained during the quarter ended June 30, 2023 as a result of issuing shares through our distribution reinvestment plan prior to this tender offer was approximately $113,374. The tender offer was for cash at a price equal to the net asset value per share as of October 31, 2023. The offer expired at 4:00 P.M., Eastern Time, on October 30, 2023, and a total of 283,611 shares were validly tendered and not withdrawn pursuant to the offer as of such date. In accordance with the terms of the offer, the Company purchased 21,113 shares validly tendered and not withdrawn at a price equal to $5.37 per share for an aggregate purchase price of approximately $113,374.                                                                                         

Senior Secured Revolving Credit Facility

On November 2, 2023, we paid down $500,000 on the Senior Secured Revolving Credit Facility. As of November 14, 2023, there was a $5,700,000 outstanding Senior Secured Revolving Credit Facility balance.

Distributions

On October 20, 2023, the Board of Directors declared a distribution for the month of October 2023, which reflects a targeted annualized distribution rate of 7.00% based on the current net asset value per share for the fourth fiscal quarter ended June 30, 2023. The distribution has a monthly record date as of the close of business of the last Friday in October 2023 and equals a weekly amount of $0.00819 per share of common stock. The distribution was paid to stockholders of record as of the monthly record date set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
October 27, 2023	November 3, 2023	$0.03276

On November 13, 2023, the Board of Directors declared distributions for the months of November 2023 and December 2023, which reflect a targeted annualized distribution rate of 7.00% based on the current net asset value per share for the fourth fiscal quarter ended June 30, 2023. The distributions have a monthly record date as of the close of business of the last Friday in November 2023 and December 2023 and equal a weekly amount of $0.00730 per share of common stock. The distributions will be paid to stockholders of record as of the monthly record dates set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
November 24, 2023	December 1, 2023	$0.02920
December 29, 2023	January 5, 2024	$0.03650

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Pay vs Performance Disclosure - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ (1,322,420)	$ (517,315)	$ (3,303,225)	$ 483,361

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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N-2 - USD ($)	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Cover [Abstract]
Entity Central Index Key	0001521945
Amendment Flag	false
Securities Act File Number	814-00908
Document Type	10-Q
Entity Registrant Name	Prospect Floating Rate and Alternative Income Fund, Inc.
Entity Address, Address Line One	10 East 40th Street
Entity Address, Address Line Two	42nd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10016
City Area Code	212
Local Phone Number	448-0702
Entity Emerging Growth Company	false
General Description of Registrant [Abstract]
Investment Objectives and Practices [Text Block]	Our investment objective is to generate current income and, as a secondary objective, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. Under normal market conditions, we will invest at least 80% of our net assets (plus any borrowings for investment purposes) in floating rate loans and other income producing investments. We will provide shareholders with 60 days' advanced notice prior to changing this 80% investment policy. We intend to meet our investment objective by primarily lending to and investing in the debt of privately-owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $2.5 billion. We have elected and intend to continue to qualify annually to be taxed for U.S. federal income tax purposes as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code").
NAV Per Share	$ 5.44	$ 6.10			$ 6.67	$ 7.03				$ 8.36				$ 8.28				$ 9.88	$ 9.89
Credit Facility [Member]
Financial Highlights [Abstract]
Senior Securities Amount	$ 6,200,000	$ 8,600,000	$ 15,477,000	$ 17,800,000	$ 20,000,000	$ 20,500,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 21,000,000	$ 15,500,000	$ 5,500,000
Senior Securities Coverage per Unit	$ 3,114	$ 2,709	$ 1,937	$ 1,830	$ 1,792	$ 1,815	$ 1,895	$ 1,924	$ 1,938	$ 1,950	$ 1,971	$ 1,976	$ 1,947	$ 1,931	$ 1,914	$ 2,018	$ 2,461	$ 5,256

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation and Consolidation. The accompanying interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q, ASC 946, Financial Services—Investment Companies (“ASC 946”), and Articles 6 and 10 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with GAAP are omitted. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending June 30, 2024. Our consolidated financial statements include the accounts of PFLOAT and the SPV. All intercompany balances and transactions have been eliminated in consolidation.

Consolidation

Basis of Presentation and Consolidation. The accompanying interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q, ASC 946, Financial Services—Investment Companies (“ASC 946”), and Articles 6 and 10 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with GAAP are omitted. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending June 30, 2024. Our consolidated financial statements include the accounts of PFLOAT and the SPV. All intercompany balances and transactions have been eliminated in consolidation.

Management Estimates and Assumptions

Management Estimates and Assumptions. The preparation of the consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income, expenses, and gains and losses during the reported period. Changes in the economic environment, financial markets, creditworthiness of the issuers of our investment portfolio and any other parameters used in determining these estimates could cause actual results to differ, and these differences could be material.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash. All cash and restricted cash balances are maintained with high credit quality financial institutions. Cash, cash equivalents and restricted cash consist of demand deposits and highly liquid investments (e.g., U.S. treasury notes) with original maturities of three months or less. Cash held at financial institutions has exceeded the Federal Deposit Insurance Corporation ("FDIC") insured limit. The Company has not incurred any losses on these accounts, and the credit risk exposure is mitigated by the financial strength of the banking institutions where the amounts are held. The Company had restrictions prior to September 21, 2023 on the uses of the cash held by Prospect Flexible Funding, LLC based on the terms of the Credit Facility. Cash, cash equivalents and restricted cash are carried at cost, which approximates fair value. Cash equivalents are classified as Level 1 in the fair value hierarchy.

Investment Transactions, Risks and Classification

Investment Transactions. 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. Specifically, we record all security transactions on a trade date basis. We determine the fair value of our investments on a quarterly basis (as discussed in Investment Valuation below), with quarter over quarter fluctuations in fair value reflected as a net change in unrealized gains (losses) from investments in the Consolidated Statements of Operations.

Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Realized gains or losses on the sale of investments are calculated using the specific identification method. Amounts for investments and or cash equivalents traded but not yet settled are reported in payable for

open trades or receivable for open trades in the Consolidated Statements of Assets and Liabilities. As of September 30, 2023 and June 30, 2023, we have no assets going through foreclosure.

Investment Risks

Our investments are subject to a variety of risks. Those risks include the following:

Market Risk

Market risk represents the potential loss that can be caused by a change in the fair value of the financial instrument.

Credit Risk

Credit risk represents the risk that we would incur if the counterparties failed to perform pursuant to the terms of their agreements with us.

Credit Spread Risk

Credit spread risk represents the risk that with higher interest rates comes a higher risk of defaults.

Default Risk

Default risk is the risk that a borrower will be unable to make the required payments on their debt obligation.

Downgrade Risk

Downgrade risk results when rating agencies lower their rating on a bond which are usually accompanied by bond price declines.

Liquidity Risk

Liquidity risk represents the possibility that we may not be able to rapidly adjust the size of our investment positions in times of high volatility and financial stress at a reasonable price.

Interest Rate Risk

Interest rate risk represents a change in interest rates, which could result in an adverse change in the fair value of an interest-bearing financial instrument.

Prepayment Risk

Many of our debt investments allow for prepayment of principal without penalty. Downward changes in interest rates may cause prepayments to occur at a faster than expected rate, thereby effectively shortening the maturity of the security and making us less likely to fully earn all of the expected income of that security and reinvesting in a lower yielding instrument.

Other Risks

Political developments, including civil conflicts and war, sanctions or other measures by the United States or other governments, natural disasters, public health crises and other events outside the Company’s control can directly or indirectly have a material adverse impact on the Company and our portfolio companies.

Structured Credit Related Risk

CLO investments may be riskier and less transparent to us than direct investments in underlying companies. CLOs typically will have no significant assets other than their underlying senior secured loans. Therefore, payments on CLO investments are and will be payable solely from the cash flows from such senior secured loans.

Investment Classification. We are a non-diversified company within the meaning of the 1940 Act. As required by the 1940 Act, we classify our investments by level of control. As defined in the 1940 Act, “Control Investments” are those where there is the ability or power to exercise a controlling influence over the management or policies of a company. Control is generally deemed to exist when a company or individual possesses or has the right to acquire within 60 days or less, a beneficial ownership of more than 25% of the voting securities of an investee company. Under the 1940 Act, “Affiliate Investments” are defined by a lesser degree of influence and are deemed to exist through the possession outright or via the right to acquire within 60 days or less, beneficial ownership of 5% or more of the outstanding voting securities of another person. “Non-Control/Non-Affiliate Investments” are those that are neither Control Investments nor Affiliate Investments.

As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). As of September 30, 2023 and June 30, 2023, our qualifying assets as a percentage of total assets stood at 80.97% and 82.67%, respectively.

Investment Valuation

Investment Valuation. As a BDC, and in accordance with the 1940 Act, we fair value our investment portfolio on a quarterly basis, with any unrealized gains and losses reflected in net increase (decrease) in net assets resulting from operations on our Consolidated Statements of Operations. To value our investments, we follow the guidance of ASC 820, Fair Value Measurement (“ASC 820”), that defines fair value, establishes a framework for measuring fair value in conformity with GAAP, and requires disclosures about fair value measurements. In accordance with ASC 820, the fair value of our investments is defined as the price that we would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment is transacted.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1. Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2. Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3. Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment.

Our Board of Directors has established procedures for the valuation of our investment portfolio. These procedures are detailed below.

Investments for which market quotations are readily available are valued at such market quotations.

For most of our investments, market quotations are not available. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, due to factors such as volume and frequency of price quotes, our Board of Directors has approved a multi-step valuation process each quarter, as described below.

1. Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors.

2. The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report.

3. The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment.

4. The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee.

For intra-quarter periods and pursuant to Rule 2a-5, the Board of Directors has designated the Adviser as the valuation designee (the “Valuation Designee”) for the purpose of performing fair value determinations for investments for which market quotations are not readily available, or when such market quotations are deemed not to represent fair value. The Board of Directors has approved a multi-step valuation process for such intra-quarter investment valuations, as described below, and such investments are classified in Level 3 of the fair value hierarchy:

1.The Adviser will start with the most recent quarterly valuations determined pursuant to the process described above.

2.The Adviser will calculate the estimated earnings per share for each investment in order to adjust the valuation of that investment for income that is expected to be realized.

3.The Adviser will consider other factors that should be taken into account in order to adjust the valuations, including, market changes in expected returns for similar investments; performance improvement or deterioration which would change the margin added to the base interest rate charged; the nature and realizable value of any collateral; the issuer’s ability to make payments and its earnings and discounted cash flow; the markets in which the issuer does business; comparisons to publicly traded securities; and other relevant factors.

Our non-CLO investments that are classified as Level 3 are valued utilizing a yield technique, enterprise value (“EV”) technique, net asset value technique, asset recovery technique, discounted cash flow technique, or a combination of techniques, as appropriate. The yield technique uses loan spreads for loans and other relevant information implied by market data involving identical or comparable assets or liabilities. Under the EV technique, the EV of a portfolio company is first determined and allocated over the portfolio company’s securities in order of their preference relative to one another (i.e., “waterfall” allocation). To determine the EV, we typically use a market (multiples) valuation approach that considers relevant and applicable market trading data of guideline public companies, transaction metrics from precedent merger and acquisitions transactions, and/or a discounted cash flow technique. The net asset value technique, an income approach, is used to derive a value of an underlying investment by dividing a relevant earnings stream by an appropriate capitalization rate. For this purpose, we consider capitalization rates for similar properties as may be obtained from guideline public companies and/or relevant transactions. The asset recovery technique is intended to approximate the net recovery value of an investment based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company’s assets. The discounted cash flow technique converts future cash flows or earnings to a range of fair values from which a single estimate may be derived utilizing an appropriate discount rate. The fair value measurement is based on the net present value indicated by current market expectations about those future amounts.

In applying these methodologies, additional factors that we consider in valuing our investments may include, as we deem relevant: security covenants, call protection provisions, and information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments; the principal markets in which the portfolio company does business; publicly available financial ratios of peer companies; the principal market; and enterprise values, among other factors.

Our investments in CLOs are classified as Level 3 fair value measured securities under ASC 820 and are valued using a discounted multi-path cash flow model. The CLO structures are analyzed to identify the risk exposures and to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, which is a simulation used to model the probability of different outcomes, to generate probability-weighted (i.e., multi-path) cash flows from the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market as well as certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the multi-path cash flows. We are not responsible for and have no influence over the asset management of the portfolios underlying the CLO investments we hold, as those portfolios are managed by non-affiliated third-party CLO collateral managers. The main risk factors are default risk, prepayment risk, interest rate risk, downgrade risk, and credit spread risk.

Revenue Recognition

Revenue Recognition. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Accretion of such purchase discounts or amortization of such premiums is calculated using the effective interest method as of the settlement date and adjusted only for material amendments or prepayments. Upon the prepayment of a loan or bond, any unamortized discount or premium is recorded as interest income. The Company records dividend income on the ex-dividend date. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. Loans are placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Unpaid accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans are either applied to the cost basis or interest income, depending upon management’s judgment of the collectibility of the loan receivable. Non-accrual loans are restored to accrual status when past due principal and interest is paid and in management’s judgment, is likely to remain current and future principal and interest collections when due are probable. Interest received and applied against cost while a loan is on non-accrual, and PIK interest capitalized but not recognized while on non-accrual, is recognized prospectively on the effective yield basis through maturity of the loan when placed back on accrual status, to the extent deemed collectible by management. As of September 30, 2023 and June 30, 2023, the Company did not have any loans on non-accrual status. Upfront structuring fees are recorded as fee income when earned. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.                                        

Some of our loans and other investments may have contractual payment-in-kind (“PIK”) interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, we capitalize the accrued interest (reflecting such amounts in the basis as additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point that we believe PIK is not fully expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the

related receivable through interest or dividend income, respectively. We do not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if we believe that PIK is expected to be realized.Interest income from investments in Structured Subordinated Notes (typically preferred shares, income notes or subordinated notes of CLO funds) is recorded based on an estimation of an effective yield to expected maturity utilizing assumed future cash flows in accordance with ASC 325-40, Beneficial Interest in the Securitized Financial Assets. The Company monitors the expected cash inflows from CLO equity investments, including the expected residual payments, and the estimated effective yield is determined and updated periodically.

Due from and to Adviser

Due from and to Adviser. Amounts due from the Adviser are for amounts waived under the ELA, respectively (as such terms are defined in Note 4) and amounts due to PFIM and the Adviser are for base management fees, incentive fees, operating expenses and offering and organization expenses paid on our behalf. All balances due from and to the Adviser are settled quarterly.

Payment-In-Kind Interest

Payment-In-Kind Interest. The Company has certain investments in its portfolio that contain a PIK interest provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. For the three months ended September 30, 2023 and 2022, PIK interest included in interest income totaled $21,994 and $162, respectively. To maintain RIC tax treatment, and to avoid corporate tax, substantially all of this income must be paid out to the stockholders in the form of distributions, even though the Company has not yet collected the cash.

Offering Costs and Expenses

Offering Costs and Expenses. The Company will incur certain costs and expenses in connection with the Private Offering and registering to sell shares of its common stock. These costs and expenses principally relate to certain costs and expenses for advertising and sales, printing and marketing costs, professional and filing fees. Offering costs incurred by the Company were capitalized to deferred offering costs on the Consolidated Statements of Assets and Liabilities and will be amortized to expense over the 12 month period following the effectiveness of the registration to sell shares of its common stock on a straight line basis.

Dividends and Distributions

Dividends and Distributions. Dividends and distributions to common stockholders are recorded on the record date. The amount, if any, to be paid as a monthly dividend or distribution is approved by our Board of Directors quarterly and generally depends on our earnings, financial condition, maintenance of our tax treatment as a RIC, compliance with applicable BDC regulations and such other factors as our Board of Directors deems relevant from time to time. Net realized capital gains, if any, are distributed at least annually. Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money originally invested and represent a return of capital distribution to shareholders for tax purposes.

Financing Costs

Financing Costs. We record origination expenses related to our Revolving Credit Facility and Senior Secured Revolving Credit Facility as deferred financing costs. These expenses are deferred and amortized as part of interest expense using the straight-line method over the stated life of the obligation of our revolving credit facility. (See Note 10 for further discussion.)

Per Share Information

Per Share Information. Net increase or decrease in net assets resulting from operations per share is calculated using the weighted average number of common shares outstanding for the period presented. (See Note 11 for further discussion.)

Net Realized and Net Change in Unrealized Gains or Losses

Net Realized and Net Change in Unrealized Gains or Losses. Gains or losses on the sale of investments are calculated by 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. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses when gains or losses are realized.

Federal and State Income Taxes

Federal and State Income Taxes. The Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and intends to continue to comply with the requirements of the Code applicable to RICs. As a RIC, the Company is required to distribute at least 90% of its investment company taxable income and intends to distribute (or retain through a deemed distribution) all of its investment company taxable income and net capital gain to stockholders; therefore, the Company has made no provision for income taxes. The character of income and gains that the Company will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividends and distributions and other permanent book and tax differences are reclassified to paid-in capital.

If the Company does not distribute (or is not deemed to have distributed) at least 98% of its annual ordinary income and 98.2% of its net capital gains in the calendar year earned, it will generally be required to pay an excise tax equal to 4% of the amount by which 98% of its annual ordinary income and 98.2% of its capital gains exceeds the distributions from such taxable income for the year. To the extent that the Company determines that its estimated current year annual taxable income will be in excess

of estimated current year dividend distributions from such taxable income, it accrues excise taxes, if any, on estimated excess taxable income. As of September 30, 2023, the Company expects to have no excise tax due for the 2023 calendar year. As of September 30, 2023, the Company has accrued $0 of excise tax for this period.

If the Company fails to satisfy the annual distribution requirement or otherwise fails to qualify as a RIC in any taxable year, it would be subject to tax on all of its taxable income at regular corporate income tax rates. The Company would not be able to deduct distributions to stockholders, nor would it be required to make distributions. Distributions would generally be taxable to the Company’s individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced maximum rate applicable to qualified dividend income to the extent of its current and accumulated earnings and profits, provided certain holding period and other requirements are met. Subject to certain limitations under the Code, corporate distributions would be eligible for the dividends-received deduction. To qualify again to be taxed as a RIC in a subsequent year, the Company would be required to distribute to its shareholders its accumulated earnings and profits attributable to non-RIC years. In addition, if the Company failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, it would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

The Company follows ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the consolidated financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. As of September 30, 2023, the Company did not record any unrecognized tax benefits or liabilities. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, its major tax jurisdiction is federal. The Company’s federal tax returns for the tax years ended December 31, 2020 and thereafter remain subject to examination by the Internal Revenue Service.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board. The Company has assessed currently issued ASUs and has determined that they are not applicable or are expected to have minimal impact on its consolidated financial statements.

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SHARE TRANSACTIONS (Tables)

3 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of Common Stock Activity

Below is a summary of transactions with respect to shares of common stock of PFLOAT during the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30, 2023			Three Months Ended September 30, 2022
	PFLOAT Class A Common Shares			PFLOAT Class A Common Shares
	Shares	Amount		Shares	Amount
Shares issued through reinvestment of distributions	18,415	$	112,005	21,177	$	153,281
Repurchase of common shares	(19,963)	(121,569)		(21,818)	(152,505)
Net (decrease)/increase from capital transactions	(1,548)	$	(9,564)	(641)	$	776

Schedule of Shares Repurchased

Below is a summary of transactions with respect to shares of common stock during each tender offer:

Quarterly Offer Date	Repurchase Effective Date	Shares Repurchased	Percentage of Shares Tendered That Were Repurchased		Repurchase Price Per Share		Aggregate Consideration for Repurchased Shares
Three months ended September 30, 2023
September 30, 2023	July 31, 2023	19,963	7	%	$	6.09	$	121,569
Total for the three months ended September 30, 2023		19,963					$	121,569
Year ended June 30, 2023
December 31, 2022	November 7, 2022	23,434	11	%	$	6.65	155,832
September 30, 2022	August 1, 2022	21,818	9	%	$	6.99	152,505
Total for the year ended June 30, 2023		45,252					$	308,337

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RELATED PARTY TRANSACTIONS AND ARRANGEMENTS (Tables)

3 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

Schedule of Expense Limitation and Expense Reimbursement Agreements

The following table provides information regarding liabilities incurred by PFIM pursuant to the Former ELA:

Period Ended		Former ELA Reimbursement Payable to PFIM		Former ELA Reimbursement Payment to PFIM	Unreimbursed Former ELA Reimbursement		Operating Expense Ratio	Annualized Distribution Rate	Eligible to be Repaid Through
September 30, 2020	(1)	$	183,386	—	$	183,386	4.33%	7.00%	September 30, 2023
December 31, 2020		—		—	—		—%	—%	N/A
March 31, 2021		—		—	—		—%	—%	N/A
June 30, 2021		—		—	—		—%	—%	N/A
Total		$	183,386		$	183,386
(1)	No longer eligible to be repaid.

Period Ended	ELA Reimbursement Payable to the Adviser		ELA Reimbursement Payment to the Adviser		Unreimbursed ELA Reimbursement		Operating Expense Ratio	Annualized Distribution Rate	Eligible to be Repaid Through
June 30, 2021	$	144,073	$	—	$	144,073	4.04%	8.11%	June 30, 2024
September 30, 2021	182,198		—		182,198		2.97%	7.08%	September 30, 2024
December 31, 2021	184,999		—		184,999		3.00%	7.10%	December 31, 2024
March 31, 2022	125,720		—		125,720		2.70%	7.22%	March 31, 2025
June 30, 2022	118,220		—		118,220		3.52%	7.87%	June 30, 2025
September 30, 2022	112,434		—		112,434		3.48%	7.38%	September 30, 2025
December 31, 2022	105,950		—		105,950		3.30%	7.49%	December 31, 2025
March 31, 2023	105,279		—		105,279		3.33%	7.18%	March 31, 2026
June 30, 2023	99,018		—		99,018		2.79%	6.97%	June 30, 2026
September 30, 2023	83,359		—		83,359		4.06%	7.85%	September 30, 2026
Total	$	1,261,250			$	1,261,250

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DISTRIBUTIONS (Tables)

3 Months Ended

Sep. 30, 2023

Equity [Abstract]

Dividends Declared and Paid

The following table reflects the cash distributions per share that the Company declared on its common stock during the three months ended September 30, 2023 and 2022: 

	Distributions
For the Three Months Ended	PFLOAT Class A Common Shares, per share		PFLOAT Class A Common Shares, Amount Distributed
September 30, 2023
July 28, 2023	$	0.03260	$	78,129
August 25, 2023	0.03260		78,313
September 29, 2023	0.04095		98,612
Total for the Three Months Ended September 30, 2023			$	255,054

	Distributions
For the Three Months Ended	PFLOAT Class A Common Shares, per share		PFLOAT Class A Common Shares, Amount Distributed
September 30, 2022
July 29, 2022	$	0.05305	$	126,365
August 26, 2022	0.04244		100,522
September 30, 2022	0.04720		112,101
Total for the Three Months Ended September 30, 2022			$	338,988

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INCOME TAXES (Tables)

3 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Investment Company, Distribution To Shareholders

The tax character of distributions paid to the Company's shareholders during the tax years ended December 31, 2022 and 2021 were as follows:

	Tax Year Ended
	December 31, 2022			December 31, 2021
Ordinary income	$	1,195,912		$	647,336
Return of capital	131,777			926,844
Total distributions paid to stockholders	$	1,327,689	(1)	$	1,574,180	(2)

(1)    For the tax year ended December 31, 2022, $80,441 of the 2021 declared distributions are allocable to 2022 for federal income tax purposes and are reported on the 2022 Form 1099-DIV. For the tax year ended December 31, 2022, $22,758 of the 2022 declared distributions are allocable to 2023 for federal income tax purposes and will be reported on the 2023 Form 1099-DIV.

(2)    For the tax year ended December 31, 2021, $97,268 of the 2020 declared distributions are allocable to 2021 for federal income tax purposes and was reported on the 2021 Form 1099-DIV. For the tax year ended December 31, 2021, $80,441 of the 2021 declared distributions are allocable to 2022 for federal income tax purposes and are reported on the 2022 Form 1099-DIV.

Reconciliation of Net Increase in Net Assets Resulting from Operations to Taxable Income

The following reconciles the net increase (decrease) in net assets resulting from operations to taxable income for the tax years ended December 31, 2022 and 2021.

	Tax Year Ended December 31, 2022		Tax Year Ended December 31, 2021
Net increase (decrease) in net assets resulting from operations	$	(3,303,225)	$	483,361
Net realized (gains) losses on investments	147,942		41,280
Net change in unrealized (gains) losses on investments	3,461,044		124,952
Other temporary book-to-tax differences	27,795		231,758
Permanent differences	155,829		318,847
Taxable income (loss) before deductions for distributions	$	489,385	$	1,200,198

Components Of Distributable Earnings (Accumulated Losses)

	Tax Year Ended December 31, 2022
Undistributed ordinary income	$	—
Undistributed long-term capital gains	$	—
Capital loss carryforwards	$	(4,290,349)

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INVESTMENT PORTFOLIO (Tables)

3 Months Ended

Sep. 30, 2023

Schedule of Investments [Abstract]

Composition of Investment Portfolio

The following tables summarize the composition of the Company’s investment portfolio at amortized cost and fair value as of September 30, 2023 and June 30, 2023:

	September 30, 2023
	Investments at Amortized Cost(1)		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Senior Secured Loans-First Lien	$	11,590,740	$	10,768,957	63	%
Senior Secured Loans-Second Lien	1,777,299		1,378,000		8	%
Senior Secured Notes	752,749		290,152		2	%
Structured Subordinated Notes	5,596,444		4,033,290		24	%
Equity/Other	1,667,943		620,319		3	%
Total Portfolio Investments	$	21,385,175	$	17,090,718	100	%
	June 30, 2023
	Investments at Amortized Cost(1)		Investments at Fair Value		Fair Value Percentage of Total Portfolio
Senior Secured Loans-First Lien	$	16,445,667	$	15,362,386	70	%
Senior Secured Loans-Second Lien	1,758,303		1,416,049		7	%
Senior Secured Notes	752,867		271,899		1	%
Structured Subordinated Notes	5,764,411		4,386,757		20	%
Equity/Other	670,383		478,096		2	%
Total Portfolio Investments	$	25,391,631	$	21,915,187	100	%
(1) Amortized cost represents the original cost adjusted for PIK interest and the amortization of premiums and/or accretion of discounts, as applicable, on investments.

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of September 30, 2023 and June 30, 2023:

	September 30, 2023
Industry	Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	4,033,290	24	%
Healthcare & Pharmaceuticals	2,528,662		15	%
Services: Business	2,381,446		14	%
Telecommunications	2,287,216		13	%
Media: Diversified and Production	1,378,000		8	%
Services: Consumer	1,360,476		8	%
Media: Broadcasting & Subscription	975,050		6	%
Beverage, Food & Tobacco	$	938,763	5	%
Wholesale	865,844		5	%
Financial	290,152		2	%
Consumer goods: Non-Durable	42,300		—	%
Retail	9,519		—	%
Total	$	17,090,718	100	%
	June 30, 2023
Industry	Investments at Fair Value		Percentage of Portfolio
Structured Finance	$	4,386,757	20	%
Healthcare & Pharmaceuticals	2,880,134		13	%
Services: Consumer	2,741,742		13	%
Services: Business	2,507,919		11	%
Telecommunications	2,324,213		11	%
Wholesale	1,662,469		8	%
Media: Diversified and Production	1,416,049		7	%
Media: Broadcasting & Subscription	971,690		4	%
Beverage, Food & Tobacco	920,151		4	%
Consumer goods: Durable	678,492		3	%
Consumer goods: Non-Durable	669,880		3	%
Automotive	470,696		2	%
Financial	271,899		1	%
Retail	13,096		—	%
Total	$	21,915,187	100	%

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Investments

The following table presents the fair value of our investments that are measured at fair value on a recurring basis disaggregated into the three levels of the ASC 820 valuation hierarchy as of September 30, 2023 and June 30, 2023, respectively:

	As of September 30, 2023
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Senior Secured Loans-First Lien	$	—	$	1,604,613	$	9,164,344	$	10,768,957
Senior Secured Loans-Second Lien	—		—		1,378,000		1,378,000
Senior Secured Notes	—		—		290,152		290,152
Structured Subordinated Notes	—		—		4,033,290		4,033,290
Equity/Other	—		—		620,319		620,319
Total Portfolio Investments	$	—	$	1,604,613	$	15,486,105	$	17,090,718
	As of June 30, 2023
	Level 1		Level 2		Level 3		Total
Portfolio Investments
Senior Secured Loans-First Lien	$	—	$	2,129,472	$	13,232,914	$	15,362,386
Senior Secured Loans-Second Lien	—		—		1,416,049		1,416,049
Senior Secured Notes	—		—		271,899		271,899
Structured Subordinated Notes	—		—		4,386,757		4,386,757
Equity/Other	—		—		478,096		478,096
Total Portfolio Investments	$	—	$	2,129,472	$	19,785,715	$	21,915,187

Schedule of Industries Comprising Greater than 10% of Portfolio Fair Value

The following table shows industries that comprise of greater than 10% of our portfolio at fair value as of September 30, 2023 and June 30, 2023:

	September 30, 2023
	Cost		Fair Value		% of Portfolio
Healthcare & Pharmaceuticals	$	2,463,150	$	2,528,662	15	%
Services: Business	2,638,746		2,381,446		14	%
Telecommunications	2,284,841		2,287,216		13	%
All Other Industries	13,998,438		9,893,394		58	%
Total	$	21,385,175	$	17,090,718	100	%

	June 30, 2023
	Cost		Fair Value		% of Portfolio
Healthcare & Pharmaceuticals	$	2,942,734	$	2,880,134	13	%
Services: Consumer	3,004,329		2,741,742		13	%
Services: Business	2,647,846		2,507,919		11	%
Telecommunications	2,283,486		2,324,213		11	%
All Other Industries	14,513,236		11,461,179		52	%
Total	$	25,391,631	$	21,915,187	100	%

Changes in Fair Value of Level 3 Investments

The following is a reconciliation for the three months ended September 30, 2023 and 2022 of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

	Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
	Senior Secured Loans - First Lien		Senior Secured Loans - Second Lien		Senior Secured Notes		Structured Subordinated Notes		Equity/Other		Total
Fair Value at June 30, 2023	$	13,232,914	$	1,416,049	$	271,899	$	4,386,757	$	478,096	$	19,785,715
Net realized gains (losses) on investments	(82,766)		—		—		—		—		(82,766)
Net change in unrealized gains (losses) on investments	(234,162)		(57,046)		18,370		(185,499)		(855,337)		(1,313,674)
Net realized and unrealized gains (losses) on investments	(316,928)		(57,046)		18,370		(185,499)		(855,337)		(1,396,440)
Restructuring of investments	(669,880)		—		—		—		997,560		327,680
Payment-in-kind interest	—		21,994		—		—		—		21,994
Accretion (amortization) of purchase discount and premium, net	645		(2,997)		(117)		(167,968)		—		(170,437)
Repayments and sales of portfolio investments	(2,372,308)		—		—		—		—		(2,372,308)
Transfers into Level 3(1)	—		—		—		—		—		—
Transfers out of Level 3(1)	(710,099)		—		—		—		—		(710,099)
Fair Value at September 30, 2023	$	9,164,344	$	1,378,000	$	290,152	$	4,033,290	$	620,319	$	15,486,105
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	$	(304,434)	$	(57,046)	$	18,370	$	(185,499)	$	(855,337)	$	(1,383,946)
(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the quarter ended September 30, 2023, one of our first lien loans transferred out of Level 3 to Level 2 due to a more significant level of market activity during the period and thus this investment was valued using observable inputs such as trades from an independent pricing service.

	Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
	Senior Secured Loans - First Lien		Senior Secured Loans - Second Lien		Structured Subordinated Notes		Equity/Other		Total
Fair Value at June 30, 2022	$	19,951,625	$	511,464	$	5,126,749	$	641,000	$	26,230,838
Net realized gains on investments	—		—		—		—		—
Net change in unrealized gains (losses) on investments	(225,003)		(18,186)		(150,209)		(77,522)		(470,920)
Net realized and unrealized gains (losses) on investments	(225,003)		(18,186)		(150,209)		(77,522)		(470,920)
Payment-in-kind interest	—		162		—		—		162
Accretion (amortization) of purchase discount and premium, net	15,191		2,402		(74,056)		—		(56,463)
Repayments and sales of portfolio investments	(1,310,252)		(13,342)		—		(10,728)		(1,334,322)
Transfers into Level 3(1)	1,702,829		—		—		—		1,702,829
Transfers out of Level 3(1)	(1,407,887)		—		—		—		(1,407,887)
Fair Value at September 30, 2022	$	18,726,503	$	482,500	$	4,902,484	$	552,750	$	24,664,237
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	$	(236,930)	$	(19,070)	$	(150,209)	$	(77,522)	$	(483,731)
(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the quarter ended September 30, 2022, one of our first lien loans transferred out of Level 2 to Level 3 due to a less significant level of market activity during the period and thus for these investments there were less observable inputs such as trades from independent pricing services. During the quarter ended September 30, 2022, one of our first lien loans transferred out of Level 3 to Level 2 due to a more significant level of market activity during the period and thus this investment was valued using observable inputs such as trades from an independent pricing service.

Schedule of Unobservable Inputs Used in Fair Value Measurement of Level 3 Investments

The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of September 30, 2023:

				Unobservable Inputs
Asset Category	Fair Value		Primary Valuation Technique	Inputs	Range				Weighted Average
Senior Secured First Lien Debt	$	331,071	Sensitivity Analysis (Current Value Method)	Enterprise Values	5.50x	to	6.50x		6.00x
Senior Secured First Lien Debt	8,833,273		Discounted Cash Flow (Yield Analysis)	Market Yield	9.63%	to	19.25%		13.81%
Senior Secured Second Lien Debt	1,378,000		Discounted Cash Flow (Yield Analysis)	Market Yield	14.67%	to	14.98%		14.83%
Senior Secured Notes	290,152		Discounted Cash Flow (Yield Analysis)	Market Yield	32.75%	to	33.34%		33.04%
Equity/Other	620,319		Enterprise Value Waterfall (Market Approach)	EBITDA multiples (x)	0.40x	to	9.25x		7.91x
Subordinated Structured Notes	4,033,290		Discounted Cash Flow	Discount Rate	17.14%	to	32.91%	(1)	24.83%	(1)
	$	15,486,105
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.

The following table provides quantitative information regarding significant unobservable inputs used in the fair value measurement of Level 3 investments as of June 30, 2023:

				Unobservable Inputs
Asset Category	Fair Value		Primary Valuation Technique	Inputs	Range				Weighted Average
Senior Secured First Lien Debt	$	499,544	Sensitivity Analysis (Current Value Method)	Enterprise Values	4.00x	to	5.00x		5.00x
Senior Secured First Lien Debt	12,733,370		Discounted Cash Flow (Yield Analysis)	Market Yield	8.91%	to	20.07%		13.12%
Senior Secured Second Lien Debt	1,416,049		Discounted Cash Flow (Yield Analysis)	Market Yield	16.00%	to	16.70%		16.4%
Senior Secured Notes	271,899		Discounted Cash Flow (Yield Analysis)	Market Yield	33.96%	to	34.28%		34.12%
Equity/Other	478,096		Enterprise Value Waterfall (Market Approach)	EBITDA multiples (x)	5.25x	to	9.25x		8.42x
Subordinated Structured Notes	4,386,757		Discounted Cash Flow	Discount Rate	8.35%	to	33.78%	(1)	24.04%	(1)
	$	19,785,715
(1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.

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FINANCIAL HIGHLIGHTS (Tables)

3 Months Ended

Sep. 30, 2023

Investment Company [Abstract]

Schedule of Financial Highlights

The following is a schedule of financial highlights for each of the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30,
	2023			2022
	(unaudited)			(unaudited)
Per Share Data(a):
Net asset value at beginning of period	$	6.10		$	7.03
Net investment income (loss)	(0.09)			0.03
Net realized and unrealized (losses) on investments	(0.43)			(0.25)
Net realized (losses) on extinguishment of debt	(0.03)			—
Net decrease in net assets resulting from operations	(0.55)			(0.22)
Distributions(b)
Return of capital distributions	(0.11)			(0.04)
Distributions from net investment income	—			(0.10)
Total Distributions	(0.11)			(0.14)
Other (c)	—			—
Net asset value at end of period	$	5.44		$	6.67
Total return based on net asset value (d)	(9.26)		%	(3.16)		%
Supplemental Data:
Net assets at end of period	$	13,106,824		$	15,845,448
Average net assets	$	13,900,344		$	16,273,212
Average shares outstanding	2,404,057			2,375,375
Ratio to average net assets:
Total annual expenses(e)	24.48		%	20.56		%
Total annual expenses (after expense limitation agreement)(e)	22.09		%	17.79		%
Net investment income (loss)(e)	(6.4)		%	1.76		%
Portfolio Turnover	—		%	—		%
(a) Calculated based on weighted average shares outstanding.
(b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01.
(c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the period.
(d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the period and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded. Total return has not been annualized.
(e) Annualized for the three months ended September 30, 2023 and 2022.

The following is a schedule of financial highlights for each of the five years ended in the period ended June 30, 2023:

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2023			June 30, 2022			June 30, 2021			June 30, 2020			June 30, 2019(e)
Per Share Data(a):
Net asset value at beginning of year	7.03			$	8.36		$	8.28		$	9.88		$	9.89
Net investment income (loss)	0.2			0.31			(0.08)			0.24			0.91
Net realized and unrealized (losses) gains on investments	(0.65)			(1.05)			0.82			(1.22)			(1.11)
Net increase (decrease) in net assets resulting from operations	(0.45)			(0.74)			0.74			(0.98)			(0.20)
Distributions(b)
Return of capital distributions(f)	(0.13)			(0.16)			(0.46)			(0.57)			(0.54)
Distributions from net investment income(f)	(0.35)			(0.43)			(0.19)			(0.15)			(0.03)
Total Distributions	(0.48)			(0.59)			(0.65)			(0.72)			(0.57)
Offering costs	—			—			—			—			0.61
Other (c)	—			—			(0.01)			0.10			0.15
Net asset value at end of year	6.10			$	7.03		$	8.36		$	8.28		$	9.88
Total return based on net asset value (d)	(6.67)		%	(9.60)		%	9.03		%	(10.13)		%	7.52		%
Supplemental Data:
Net assets at end of year	$	14,693,862		$	16,700,975		$	19,947,807		$	19,558,400		$	23,410,715
Average net assets	$	15,303,274		$	18,912,658		$	20,055,524		$	21,234,189		$	12,536,923
Average shares outstanding	283,649			2,380,229			2,377,461			2,366,005			1,297,582
Ratio to average net assets:
Total annual expenses	21.06		%	15.70		%	20.07		%	16.41		%	23.48		%
Total annual expenses (after expense support agreement/expense limitation agreement)	18.3		%	12.47		%	18.44		%	13.07		%	9.11		%
Net investment income (loss)	3.2		%	3.95		%	(0.93)		%	2.67		%	2.15		%
Portfolio Turnover	—		%	35.34		%	17.83		%	24.56%			93.42		%
(a) Calculated based on weighted average shares outstanding.
(b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01.
(c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the year.
(d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the year and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded.
(e) Data presented for the year ended June 30, 2019 includes the shareholder activity of PWAY Class A and Class I shares, prior to the Merger and conversion into shares of the Company. The net asset value per share at beginning of year has been adjusted by the exchange ratio used in the Merger.
(f) The amounts reflected for the year ended June 30, 2022 have not been finalized. The amounts reflected for the year ended June 30, 2021 were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2021. Certain reclassifications have been made in the presentation of prior period amounts. See Note 2 and Note 6 within the accompanying notes to the consolidated financial statements for further discussion.

Information about our senior securities is shown in the following table since June 30, 2019. As of September 30, 2023 and June 30, 2023, our asset coverage ratio stood at 311% and 271%, respectively, based on the outstanding principal amount of our senior securities representing indebtedness.

Revolving Credit Facility	Total Amount Outstanding		Asset Coverage per Unit(1)		Involuntary Liquidating Preference per Unit(2)	Average Market Value per Unit(2)
September 30, 2023	$	6,200,000	$	3,114	—	—
June 30, 2023	$	8,600,000	$	2,709	—	—
March 31, 2023	$	15,477,000	$	1,937	—	—
December 31, 2022	$	17,800,000	$	1,830	—	—
September 30, 2022	$	20,000,000	$	1,792	—	—
June 30, 2022	$	20,500,000	$	1,815	—	—
March 31, 2022	$	21,000,000	$	1,895	—	—
December 31, 2021	$	21,000,000	$	1,924	—	—
September 30, 2021	$	21,000,000	$	1,938	—	—
June 30, 2021	$	21,000,000	$	1,950	—	—
March 31, 2021	$	21,000,000	$	1,971	—	—
December 31, 2020	$	21,000,000	$	1,976	—	—
September 30, 2020	$	21,000,000	$	1,947	—	—
June 30, 2020	$	21,000,000	$	1,931	—	—
March 31, 2020	$	21,000,000	$	1,914	—	—
December 31, 2019	$	21,000,000	$	2,018	—	—
September 30, 2019	$	15,500,000	$	2,461	—	—
June 30, 2019	$	5,500,000	$	5,256	—	—
(1) The asset coverage ratio is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit.
(2) This column is inapplicable.

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NET INCREASE (DECREASE) IN NET ASSETS PER SHARE (Tables)

3 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following information sets forth the computation of net increase in net assets resulting from operations per share during the three months ended September 30, 2023 and 2022.

 

	Three Months Ended September 30,
	2023		2022
Net decrease in net assets resulting from operations	$	(1,322,420)	$	(517,315)
Weighted average common shares outstanding	2,404,057		2,375,375
Net decrease in net assets resulting from operations per share	$	(0.55)	$	(0.22)

Schedule of Weighted Average Number of Shares

The following information sets forth the computation of net increase in net assets resulting from operations per share during the three months ended September 30, 2023 and 2022.

 

	Three Months Ended September 30,
	2023		2022
Net decrease in net assets resulting from operations	$	(1,322,420)	$	(517,315)
Weighted average common shares outstanding	2,404,057		2,375,375
Net decrease in net assets resulting from operations per share	$	(0.55)	$	(0.22)

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Subsequent Events (Tables)

3 Months Ended

Sep. 30, 2023

Subsequent Events [Abstract]

Schedule of Dividends Payable

The distribution was paid to stockholders of record as of the monthly record date set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
October 27, 2023	November 3, 2023	$0.03276

The distributions will be paid to stockholders of record as of the monthly record dates set forth below.

Record Date	Payment Date	PFLOAT Class A Common Shares, per share
November 24, 2023	December 1, 2023	$0.02920
December 29, 2023	January 5, 2024	$0.03650

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NATURE OF OPERATIONS (Details) - USD ($)	Sep. 30, 2023	Sep. 13, 2023	Jun. 30, 2023	Oct. 27, 2020	Jun. 25, 2014	Apr. 29, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Common stock, shares authorized (in shares)	75,000,000		75,000,000			75,000,000
Common stock, par value (usd per share)	$ 0.001		$ 0.001			$ 0.001
Preferred stock, shares authorized (in shares)						25,000,000
Preferred stock, par value (usd per share)						$ 0.001
Offering size		$ 300,000,000		$ 300,000,000
Minimum offering requirement					$ 2,500,000

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SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Accounting Policies [Abstract]
Cash equivalents	$ 4,994,167		$ 4,997,938
Qualifying assets	80.97%		82.67%
PIK interest	$ 21,994	$ 162
Taxes payable	$ 0

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SHARE TRANSACTIONS - Common Stock Activity (Details) - USD ($)	3 Months Ended				12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2023
Class of Stock [Line Items]
Repurchase of common shares (in shares)	(19,963)		(23,434)	(21,818)	(45,252)
Shares issued through reinvestment of distributions	$ 112,005	$ 113,374		$ 153,281
Repurchase of common shares	(121,569)			(152,505)
Total Increase (Decrease) during period	$ (1,587,038)			$ (855,527)
Common Class A
Class of Stock [Line Items]
Shares issued through reinvestment of dividends (in shares)	18,415			21,177
Repurchase of common shares (in shares)	(19,963)			(21,818)
Total Increase (Decrease) (in shares)	(1,548)			(641)
Shares issued through reinvestment of distributions	$ 112,005			$ 153,281
Repurchase of common shares	(121,569)			(152,505)
Total Increase (Decrease) during period	$ (9,564)			$ 776

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SHARE TRANSACTIONS - Narrative (Details)	Sep. 30, 2023
Equity [Abstract]
Share repurchase threshold	10.00%
Share repurchase quarterly threshold	2.50%

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SHARE TRANSACTIONS - Shares Repurchased (Details) - USD ($)	3 Months Ended			12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2023
Equity [Abstract]
Shares Repurchased (in shares)	19,963	23,434	21,818	45,252
Percentage of Shares Tendered That Were Repurchased	7.00%	11.00%	9.00%
Repurchase Price Per Share (usd per share)	$ 6.09	$ 6.65	$ 6.99
Aggregate Consideration for Repurchased Shares	$ 121,569	$ 155,832	$ 152,505	$ 308,337

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RELATED PARTY TRANSACTIONS AND ARRANGEMENTS (Details)						3 Months Ended										27 Months Ended
	Jan. 01, 2022	Nov. 05, 2021	Apr. 20, 2021	Feb. 17, 2021	Apr. 30, 2020	Sep. 30, 2023 USD ($) component	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2023 USD ($) component
Related Party Transaction [Line Items]
Allocation of overhead						$ 223,750				$ 60,582
Incentive fee payable						0	$ 0									$ 0
Incentive fee expense						0				0
Base management expense						83,359				112,434
Due to Administrator (Note 4)						1,087,384	868,634									1,087,384
Administration Agreement
Related Party Transaction [Line Items]
Accrued administrative fees						1,087,384				868,634						$ 1,087,384
Voluntary fee waived						83,359				112,434
Administration Agreement - Banking Fees
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction						8,750				8,750
Investment Advisory Agreement
Related Party Transaction [Line Items]
Agreement term	2 years
Expense Limitation and Expense Reimbursement Agreements
Related Party Transaction [Line Items]
Base management fee rate			6.00%
Expense Limitation and Expense Reimbursement Agreements | Prospect Flexible Income Management, LLC
Related Party Transaction [Line Items]
Base management fee rate			6.00%
Voluntary fee waived						83,359	99,018	$ 105,279	$ 105,950
Related Party | Independent Directors
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction						$ 0				$ 0
Related Party | Investment Advisory Agreement
Related Party Transaction [Line Items]
Base management fee rate	1.20%	1.20%	1.75%
Number of parts to incentive fee | component						2										2
Related Party | Investment Advisory And Management Agreement Incentive Rate Quarterly Hurdle Rate
Related Party Transaction [Line Items]
Base management fee rate		0.30%	0.4375%
Related Party | Investment Advisory Agreement - Incentive Rate, Quarterly Hurdle Rate
Related Party Transaction [Line Items]
Incentive rate						1.50%
Related Party | Investment Advisory And Management Agreement Incentive Rate Annual Hurdle Rate
Related Party Transaction [Line Items]
Incentive rate						6.00%
Related Party | Investment Advisory And Management Agreement Incentive Rate Pre Incentive Fee Net Investment Income Below Catch Up Threshold
Related Party Transaction [Line Items]
Incentive rate						100.00%
Related Party | Investment Advisory And Management Agreement Incentive Rate Pre Incentive Fee Net Investment Income Below Catch Up Threshold | Maximum
Related Party Transaction [Line Items]
Incentive rate						1.875%
Related Party | Investment Advisory And Management Agreement Incentive Rate Annual Catch Up Threshold Member
Related Party Transaction [Line Items]
Incentive rate						7.50%
Related Party | Investment Advisory And Management Agreement Incentive Rate Pre Incentive Fee Net Investment Income Exceeds Catch Up Threshold Member
Related Party Transaction [Line Items]
Incentive rate						20.00%
Related Party | Investment Management Agreement - Incentive Rate, Realized Capital Gains
Related Party Transaction [Line Items]
Incentive rate						20.00%
Related Party | Investment Advisory Agreement - Base Management Fees
Related Party Transaction [Line Items]
Due to Administrator (Note 4)						$ 0	$ 0									$ 0
Related Party | Expense Limitation and Expense Reimbursement Agreements
Related Party Transaction [Line Items]
ELA annual limit						8.00%										8.00%
Related Party | Expense Limitation and Expense Reimbursement Agreements | Prospect Flexible Income Management, LLC
Related Party Transaction [Line Items]
Base management fee rate						7.85%	6.97%	7.18%	7.49%	7.38%	7.87%	7.22%	7.10%	7.08%	8.11%
Voluntary fee waived										$ 112,434	$ 118,220	$ 125,720	$ 184,999	$ 182,198	$ 144,073	$ 1,261,250
Expense limitation and expense reimbursement agreements term					12 months
ELA annual limit					8.00%
Base management expense						$ 0				$ 0
Waived fee subject to repayment term				3 years

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RELATED PARTY TRANSACTIONS AND ARRANGEMENTS - ELA Agreements (Details) - USD ($)		3 Months Ended													12 Months Ended	27 Months Ended
	Apr. 20, 2021	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2021	Sep. 30, 2023
Former Expense Limitation and Expense Reimbursement Agreements | Related Party | Prospect Flexible Income Management, LLC
Related Party Transaction [Line Items]
ELA Reimbursement Payable to the Adviser											$ 0	$ 0	$ 0	$ 183,386	$ 183,386
ELA Reimbursement Payment to the Adviser											0	0	0	0
Unreimbursed ELA Reimbursement											$ 0	$ 0	$ 0	$ 183,386	$ 183,386
Operating Expense Ratio											0.00%	0.00%	0.00%	4.33%
Annualized Distribution Rate											0.00%	0.00%	0.00%	7.00%
Expense Limitation and Expense Reimbursement Agreements
Related Party Transaction [Line Items]
Annualized Distribution Rate	6.00%
Expense Limitation and Expense Reimbursement Agreements | Prospect Flexible Income Management, LLC
Related Party Transaction [Line Items]
ELA Reimbursement Payable to the Adviser		$ 83,359	$ 99,018	$ 105,279	$ 105,950
Annualized Distribution Rate	6.00%
Expense Limitation and Expense Reimbursement Agreements | Related Party | Prospect Flexible Income Management, LLC
Related Party Transaction [Line Items]
ELA Reimbursement Payable to the Adviser						$ 112,434	$ 118,220	$ 125,720	$ 184,999	$ 182,198	$ 144,073					$ 1,261,250
ELA Reimbursement Payment to the Adviser		0	0	0	0	0	0	0	0	0	0
Unreimbursed ELA Reimbursement		$ 83,359	$ 99,018	$ 105,279	$ 105,950	$ 112,434	$ 118,220	$ 125,720	$ 184,999	$ 182,198	$ 144,073					$ 1,261,250
Operating Expense Ratio		4.06%	2.79%	3.33%	3.30%	3.48%	3.52%	2.70%	3.00%	2.97%	4.04%
Annualized Distribution Rate		7.85%	6.97%	7.18%	7.49%	7.38%	7.87%	7.22%	7.10%	7.08%	8.11%

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DISTRIBUTIONS - Schedule of Common Stock Dividends (Details) - USD ($)							3 Months Ended
	Sep. 29, 2023	Aug. 25, 2023	Jul. 28, 2023	Sep. 30, 2022	Aug. 26, 2022	Jul. 29, 2022	Sep. 30, 2023	Sep. 30, 2022
Equity [Abstract]
PFLOAT Class A Common Shares, per share (usd per share)	$ 0.04095	$ 0.03260	$ 0.03260	$ 0.04720	$ 0.04244	$ 0.05305
PFLOAT Class A Common Shares, Amount Distributed	$ 98,612	$ 78,313	$ 78,129	$ 112,101	$ 100,522	$ 126,365	$ 255,054	$ 338,988

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DISTRIBUTIONS - Narrative (Details) - shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Officers and Directors | Related Party
Related Party Transaction [Line Items]
Shares issued (in shares)	0	0

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INCOME TAXES - Schedule of Distributions (Details) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Ordinary income			$ 1,195,912	$ 647,336
Return of capital	$ 255,054	$ 91,282	131,777	926,844
Total distributions paid to stockholders			1,327,689	1,574,180
Prior year distributions allocable to current year			80,441	97,268
Current year distributions allocable to next year			$ 22,758	$ 80,441

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INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2023	Jun. 30, 2023
Income Taxes [Line Items]
Distributable loss		$ 8,489,742		$ 11,555,574	$ 10,233,154
Reclassification of distributions from capital, increase (decrease)		(21,624)
Cost basis of investments for tax purposes				19,081,212	24,297,629
Unrealized appreciation (depreciation), net				(1,990,492)	(2,382,442)
Tax basis of investments, gross, unrealized appreciation				474,796	481,915
Tax basis of investments, gross, unrealized depreciation				$ 2,465,288	$ 2,864,357
Capital loss carryforward	$ 4,290,349		$ 4,164,261
Retained earnings
Income Taxes [Line Items]
Reclassification of distributions from capital, increase (decrease)	155,829		318,847
Paid-in Capital in Excess of Par
Income Taxes [Line Items]
Reclassification of distributions from capital, increase (decrease)	$ (155,829)		$ (318,847)
Previously Reported
Income Taxes [Line Items]
Distributable loss		$ 8,511,366

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INCOME TAXES - Reconciliation of Net Increase in Net Assets Resulting from Operations to Taxable Income (Details) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net increase (decrease) in net assets resulting from operations	$ (1,322,420)	$ (517,315)	$ (3,303,225)	$ 483,361
Net realized (gains) losses on investments			147,942	41,280
Net change in unrealized (gains) losses on investments			3,461,044	124,952
Other temporary book-to-tax differences			27,795	231,758
Permanent differences			155,829	318,847
Taxable income (loss) before deductions for distributions			$ 489,385	$ 1,200,198

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INCOME TAXES - Distributable Earnings (Accumulated Losses) (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Undistributed ordinary income	$ 0
Undistributed long-term capital gains	0
Capital loss carryforwards	$ (4,290,349)	$ (4,164,261)

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INVESTMENT PORTFOLIO - Narrative (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023		Sep. 30, 2022	Jun. 30, 2023
Schedule of Investments [Line Items]
Investments at fair value	$ 17,090,718	[1]		$ 21,915,187
Cost	21,385,175	[2]		$ 25,391,631
Existing Portfolio
Schedule of Investments [Line Items]
Cost basis of debt placement and equity securities acquired, including follow-on investments for existing portfolio companies, payment-in-kind interest, and structuring fees	21,994		$ 162
Noncash Restructured Investments
Schedule of Investments [Line Items]
Cost basis of debt placement and equity securities acquired, including follow-on investments for existing portfolio companies, payment-in-kind interest, and structuring fees	997,560		0
Debt Repayments and Considerations - Excluding Noncash Restructured Investments
Schedule of Investments [Line Items]
Debt repayments and considerations from sales of equity securities	3,641,054		1,358,587
Debt Repayments and Considerations - Including Noncash Restructured Investments
Schedule of Investments [Line Items]
Debt repayments and considerations from sales of equity securities	$ 4,638,614		$ 1,358,587
Interest at Floating Rates
Schedule of Investments [Line Items]
Investment, fair value	95.00%			97.00%
Investments at fair value	$ 16,180,247			$ 21,165,192
Investment, amortized cost	89.00%			94.00%
Cost	$ 18,964,483			$ 23,968,381

[1] Fair value is determined by the Company’s Board of Directors (see Note 2).

[2] See Note 6 for a discussion of the tax cost of the portfolio.

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INVESTMENT PORTFOLIO - Investment Portfolio by Type (Details) - USD ($)	Sep. 30, 2023		Jun. 30, 2023
Schedule of Investments [Line Items]
Amortized Cost	$ 21,385,175	[1]	$ 25,391,631
Investments at Fair Value	$ 17,090,718	[2]	$ 21,915,187
Fair Value Percentage of Total Portfolio	130.40%		149.14%
Aggregate Investments
Schedule of Investments [Line Items]
Fair Value Percentage of Total Portfolio	100.00%		100.00%
Senior Secured Loans-First Lien
Schedule of Investments [Line Items]
Amortized Cost	$ 11,590,740		$ 16,445,667
Investments at Fair Value	$ 10,768,957		$ 15,362,386
Fair Value Percentage of Total Portfolio	63.00%		70.00%
Senior Secured Loans-Second Lien
Schedule of Investments [Line Items]
Amortized Cost	$ 1,777,299		$ 1,758,303
Investments at Fair Value	$ 1,378,000		$ 1,416,049
Fair Value Percentage of Total Portfolio	8.00%		7.00%
Senior Secured Notes
Schedule of Investments [Line Items]
Amortized Cost	$ 752,749		$ 752,867
Investments at Fair Value	$ 290,152		$ 271,899
Fair Value Percentage of Total Portfolio	2.00%		1.00%
Structured Subordinated Notes
Schedule of Investments [Line Items]
Amortized Cost	$ 5,596,444		$ 5,764,411
Investments at Fair Value	$ 4,033,290		$ 4,386,757
Fair Value Percentage of Total Portfolio	24.00%		20.00%
Equity/Other
Schedule of Investments [Line Items]
Amortized Cost	$ 1,667,943		$ 670,383
Investments at Fair Value	$ 620,319		$ 478,096
Fair Value Percentage of Total Portfolio	3.00%		2.00%

[1] See Note 6 for a discussion of the tax cost of the portfolio.

[2] Fair value is determined by the Company’s Board of Directors (see Note 2).

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INVESTMENT PORTFOLIO - Investment Fair Value by Industry (Details) - USD ($)	Sep. 30, 2023		Jun. 30, 2023
Schedule of Investments [Line Items]
Fair Value	$ 17,090,718	[1]	$ 21,915,187
Percentage of Portfolio	130.40%		149.14%
Aggregate Sectors
Schedule of Investments [Line Items]
Percentage of Portfolio	100.00%		100.00%
Structured Finance
Schedule of Investments [Line Items]
Fair Value	$ 4,033,290		$ 4,386,757
Percentage of Portfolio	24.00%		20.00%
Healthcare & Pharmaceuticals
Schedule of Investments [Line Items]
Fair Value	$ 2,528,662		$ 2,880,134
Percentage of Portfolio	15.00%		13.00%
Services: Business
Schedule of Investments [Line Items]
Fair Value	$ 2,381,446		$ 2,507,919
Percentage of Portfolio	14.00%		11.00%
Telecommunications
Schedule of Investments [Line Items]
Fair Value	$ 2,287,216		$ 2,324,213
Percentage of Portfolio	13.00%		11.00%
Media: Diversified and Production
Schedule of Investments [Line Items]
Fair Value	$ 1,378,000		$ 1,416,049
Percentage of Portfolio	8.00%		7.00%
Services: Consumer
Schedule of Investments [Line Items]
Fair Value	$ 1,360,476		$ 2,741,742
Percentage of Portfolio	8.00%		13.00%
Media: Broadcasting & Subscription
Schedule of Investments [Line Items]
Fair Value	$ 975,050		$ 971,690
Percentage of Portfolio	6.00%		4.00%
Beverage, Food & Tobacco
Schedule of Investments [Line Items]
Fair Value	$ 938,763		$ 920,151
Percentage of Portfolio	5.00%		4.00%
Wholesale
Schedule of Investments [Line Items]
Fair Value	$ 865,844		$ 1,662,469
Percentage of Portfolio	5.00%		8.00%
Financial
Schedule of Investments [Line Items]
Fair Value	$ 290,152		$ 271,899
Percentage of Portfolio	2.00%		1.00%
Consumer goods: Non-Durable
Schedule of Investments [Line Items]
Fair Value	$ 42,300		$ 669,880
Percentage of Portfolio	0.00%		3.00%
Retail
Schedule of Investments [Line Items]
Fair Value	$ 9,519		$ 13,096
Percentage of Portfolio	0.00%		0.00%
Consumer goods: Durable
Schedule of Investments [Line Items]
Fair Value			$ 678,492
Percentage of Portfolio			3.00%
Automotive
Schedule of Investments [Line Items]
Fair Value			$ 470,696
Percentage of Portfolio			2.00%

[1] Fair value is determined by the Company’s Board of Directors (see Note 2).

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Investments (Details) - USD ($)	Sep. 30, 2023		Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 17,090,718	[1]	$ 21,915,187
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	1,604,613		2,129,472
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	15,486,105		19,785,715
Senior Secured Loans-First Lien
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	10,768,957		15,362,386
Senior Secured Loans-First Lien | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Senior Secured Loans-First Lien | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	1,604,613		2,129,472
Senior Secured Loans-First Lien | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	9,164,344		13,232,914
Senior Secured Loans-Second Lien
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	1,378,000		1,416,049
Senior Secured Loans-Second Lien | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Senior Secured Loans-Second Lien | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Senior Secured Loans-Second Lien | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	1,378,000		1,416,049
Senior Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	290,152		271,899
Senior Secured Notes | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Senior Secured Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Senior Secured Notes | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	290,152		271,899
Structured Subordinated Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	4,033,290		4,386,757
Structured Subordinated Notes | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Structured Subordinated Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Structured Subordinated Notes | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	4,033,290		4,386,757
Equity/Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	620,319		478,096
Equity/Other | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Equity/Other | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0		0
Equity/Other | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 620,319		$ 478,096

[1] Fair value is determined by the Company’s Board of Directors (see Note 2).

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)						3 Months Ended			6 Months Ended
		Sep. 30, 2023		Jun. 30, 2023		Sep. 30, 2023		Sep. 30, 2022	Dec. 31, 2022	Jun. 30, 2022
Schedule of Investments [Line Items]
Investments at fair value		$ 17,090,718	[1]	$ 21,915,187		$ 17,090,718	[1]
Percentage of total assets at fair value		100.00%		100.00%
Cost		$ 21,385,175	[2]	$ 25,391,631		21,385,175	[2]
Structuring fees						0		$ 0
Accelerated original issue discounts due to repayments						0		3,020
Early repayment income, interest income						0		$ 0
California
Schedule of Investments [Line Items]
Investments at fair value		2,353,050		2,387,739		2,353,050
Cost		2,750,213		2,735,828		2,750,213
Tennessee
Schedule of Investments [Line Items]
Investments at fair value		1,960,162		2,626,623		1,960,162
Cost		1,990,793		2,698,856		1,990,793
Texas
Schedule of Investments [Line Items]
Investments at fair value		1,877,365				1,877,365
Cost		1,873,189				$ 1,873,189
Connecticut
Schedule of Investments [Line Items]
Investments at fair value				2,264,823
Cost				2,395,186
Investments at Fair Value | Geographic Concentration Risk | California
Schedule of Investments [Line Items]
Percentage of total assets at fair value						13.80%			10.90%
Investments at Fair Value | Geographic Concentration Risk | Tennessee
Schedule of Investments [Line Items]
Percentage of total assets at fair value						11.50%			12.00%
Investments at Fair Value | Geographic Concentration Risk | Texas
Schedule of Investments [Line Items]
Percentage of total assets at fair value						11.00%
Investments at Fair Value | Geographic Concentration Risk | Connecticut
Schedule of Investments [Line Items]
Percentage of total assets at fair value									10.30%
Investment, Identifier [Axis]: Equity, Other - ACON IWP Investors I, L.L.C.
Schedule of Investments [Line Items]
Investments at fair value		568,500	[1],[3],[4],[5],[6],[7]	465,000	[8],[9],[10],[11]	$ 568,500	[1],[3],[4],[5],[6],[7]
Cost		472,357	[2],[3],[4],[5],[6],[7]	472,357	[8],[9],[10],[11]	472,357	[2],[3],[4],[5],[6],[7]
Investment, Identifier [Axis]: Equity, Other - FullBeauty Brands Holding, Common Stock
Schedule of Investments [Line Items]
Investments at fair value		9,519	[1],[3],[4],[5],[6],[7]	13,096	[8],[9],[10],[11]	9,519	[1],[3],[4],[5],[6],[7]
Cost		198,026	[2],[3],[4],[5],[6],[7]	198,026	[8],[9],[10],[11]	198,026	[2],[3],[4],[5],[6],[7]
Investment, Identifier [Axis]: Equity, Other - Rising Tide Holdings, Inc., Common Stock
Schedule of Investments [Line Items]
Investments at fair value	[1],[3],[4],[5],[6],[7]	42,300				42,300
Cost	[2],[3],[4],[5],[6],[7]	997,560				997,560
Investment, Identifier [Axis]: Placeholder
Schedule of Investments [Line Items]
Investments at fair value		0		0		0				$ 0
Investment, Identifier [Axis]: Senior Secured Loans, Research Now Group, LLC
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14]			1,797,820
Cost	[9],[11],[13],[14],[15]			1,920,012
Investment, Identifier [Axis]: Senior Secured Loans, Viapath Technologies
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14],[16]			405,431
Cost	[9],[11],[13],[14],[15],[16]			412,170
Investment, Identifier [Axis]: Senior Secured Loans, Aventiv Technologies
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14],[16]			1,918,782
Cost	[9],[11],[13],[14],[15],[16]			1,871,317
Investment, Identifier [Axis]: Senior Secured Loans, Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)
Schedule of Investments [Line Items]
Investments at fair value	[1],[3],[5],[6],[17],[18]	1,877,365				1,877,365
Cost	[2],[3],[5],[6],[17],[18]	1,873,189				1,873,189
Investment, Identifier [Axis]: Senior Secured Loans, BCPE North Star US Holdco 2
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14]			920,151
Cost	[9],[11],[13],[14],[15]			972,281
Investment, Identifier [Axis]: Senior Secured Loans, BCPE North Star US Holdco 2, Inc.
Schedule of Investments [Line Items]
Investments at fair value	[1],[3],[5],[6],[18]	938,763				938,763
Cost	[2],[3],[5],[6],[18]	967,059				967,059
Investment, Identifier [Axis]: Senior Secured Loans, CareerBuilder, LLC
Schedule of Investments [Line Items]
Investments at fair value		331,071	[1],[3],[5],[6],[17],[18]	499,544	[9],[11],[12],[13],[14],[16]	331,071	[1],[3],[5],[6],[17],[18]
Cost		721,772	[2],[3],[5],[6],[17],[18]	723,343	[9],[11],[13],[14],[15],[16]	721,772	[2],[3],[5],[6],[17],[18]
Investment, Identifier [Axis]: Senior Secured Loans, DRI Holding Inc
Schedule of Investments [Line Items]
Investments at fair value		975,050	[1],[3],[5],[6],[18]	971,690	[9],[11],[12],[13],[14]	975,050	[1],[3],[5],[6],[18]
Cost		972,914	[2],[3],[5],[6],[18]	977,525	[9],[11],[13],[14],[15]	972,914	[2],[3],[5],[6],[18]
Investment, Identifier [Axis]: Senior Secured Loans, DTI Holdco, Inc.
Schedule of Investments [Line Items]
Investments at fair value		738,769	[1],[3],[5],[6],[18]	710,099	[9],[11],[12],[13],[14]	738,769	[1],[3],[5],[6],[18]
Investment owned, discount (premium)		(14,068)		17,735		(14,068)
Cost		724,701	[2],[3],[5],[6],[18]	727,834	[9],[11],[13],[14],[15]	724,701	[2],[3],[5],[6],[18]
Investment, Identifier [Axis]: Senior Secured Loans, First Brands Group
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14]			470,696
Cost	[9],[11],[13],[14],[15]			470,727
Investment, Identifier [Axis]: Senior Secured Loans, PetVet Care Centers, LLC
Schedule of Investments [Line Items]
Investments at fair value	[11],[12],[13],[14],[19]			467,003
Cost	[11],[13],[14],[15],[19]			475,174
Investment, Identifier [Axis]: Senior Secured Loans, RC Buyer, Inc
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14]			678,492
Cost	[9],[11],[13],[14],[15]			703,653
Investment, Identifier [Axis]: Senior Secured Loans, Research Now Group and Dynata LLC
Schedule of Investments [Line Items]
Investments at fair value	[1],[3],[5],[6],[18]	1,642,677				1,642,677
Cost	[2],[3],[5],[6],[18]	1,914,045				1,914,045
Investment, Identifier [Axis]: Senior Secured Loans, Rising Tide Holdings, Inc.
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14],[20]			669,880
Cost	[9],[11],[13],[14],[15],[20]			997,560
Investment, Identifier [Axis]: Senior Secured Loans, Sorenson Communications, LLC
Schedule of Investments [Line Items]
Investments at fair value		1,029,405	[1],[3],[5],[6],[18]	1,062,278	[9],[11],[12],[13],[14]	1,029,405	[1],[3],[5],[6],[18]
Cost		1,021,364	[2],[3],[5],[6],[18]	1,055,986	[9],[11],[13],[14],[15]	1,021,364	[2],[3],[5],[6],[18]
Investment, Identifier [Axis]: Senior Secured Loans, Staples, Inc.
Schedule of Investments [Line Items]
Investments at fair value		865,844	[1],[5],[6],[17],[18],[21]	1,662,469	[11],[12],[13],[14],[16],[19]	865,844	[1],[5],[6],[17],[18],[21]
Cost		993,251	[2],[5],[6],[17],[18],[21]	1,917,882	[11],[13],[14],[15],[16],[19]	993,251	[2],[5],[6],[17],[18],[21]
Investment, Identifier [Axis]: Senior Secured Loans, Upstream Newco, Inc.
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14]			1,179,920
Cost	[9],[11],[13],[14],[15]			1,225,000
Investment, Identifier [Axis]: Senior Secured Loans, ViaPath Technologies
Schedule of Investments [Line Items]
Investments at fair value	[1],[3],[5],[6],[17],[18]	409,851				409,851
Cost	[2],[3],[5],[6],[17],[18]	411,652				411,652
Investment, Identifier [Axis]: Senior Secured Loans, Wellpath Holdings, Inc.
Schedule of Investments [Line Items]
Investments at fair value		1,960,162	[1],[3],[5],[6],[17],[18]	1,948,131	[9],[11],[12],[13],[14],[16]	1,960,162	[1],[3],[5],[6],[17],[18]
Cost		1,990,793	[2],[3],[5],[6],[17],[18]	1,995,203	[9],[11],[13],[14],[15],[16]	1,990,793	[2],[3],[5],[6],[17],[18]
Investment, Identifier [Axis]: Senior Secured Loans-Second Lien, Shutterfly Finance
Schedule of Investments [Line Items]
Investments at fair value	[1],[3],[5],[6],[18],[22]	1,378,000				1,378,000
Cost	[2],[3],[5],[6],[18],[22]									$ 1,777,299
Investment, Identifier [Axis]: Senior Secured Loans-Second Lien, Shutterfly Finance, LLC
Schedule of Investments [Line Items]
Investments at fair value	[9],[11],[12],[13],[14],[20]			1,416,049
Cost	[9],[11],[13],[14],[15],[20]			1,758,303
Investment, Identifier [Axis]: Senior Secured Notes, CURO Group Holdings Corp.
Schedule of Investments [Line Items]
Investments at fair value		290,152	[1],[3],[5],[6],[7]	271,899	[8],[9],[12]	290,152	[1],[3],[5],[6],[7]
Cost		752,749	[2],[3],[5],[6],[7]	752,867	[8],[9],[15]	752,749	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Apidos CLO XXIV
Schedule of Investments [Line Items]
Investments at fair value		159,726	[1],[3],[5],[6],[7]	163,123	[8],[9],[11],[12],[23]	159,726	[1],[3],[5],[6],[7]
Cost		165,284	[2],[3],[5],[6],[7]	166,533	[8],[9],[11],[15],[23]	165,284	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Apidos CLO XXVI
Schedule of Investments [Line Items]
Investments at fair value		146,591	[1],[3],[5],[6],[7]	164,613	[8],[9],[11],[12],[23]	146,591	[1],[3],[5],[6],[7]
Cost		182,819	[2],[3],[5],[6],[7]	188,599	[8],[9],[11],[15],[23]	182,819	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, California CLO IX, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		214,411	[1],[3],[5],[6],[7]	240,926	[8],[9],[11],[12],[23]	214,411	[1],[3],[5],[6],[7]
Cost		260,592	[2],[3],[5],[6],[7]	265,278	[8],[9],[11],[15],[23]	260,592	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Carlyle Global Market Strategies CLO 2014-4-R, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		144,074	[1],[3],[5],[6],[7]	154,469	[8],[9],[11],[12],[23]	144,074	[1],[3],[5],[6],[7]
Cost		170,675	[2],[3],[5],[6],[7]	174,426	[8],[9],[11],[15],[23]	170,675	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Carlyle Global Market Strategies CLO 2017-5, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		309,080	[1],[3],[5],[6],[7]	319,644	[8],[9],[11],[12],[23]	309,080	[1],[3],[5],[6],[7]
Cost		409,802	[2],[3],[5],[6],[7]	422,204	[8],[9],[11],[15],[23]	409,802	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Galaxy XIX CLO, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		119,790	[1],[3],[5],[6],[7]	126,513	[8],[9],[11],[12],[23]	119,790	[1],[3],[5],[6],[7]
Cost		168,968	[2],[3],[5],[6],[7]	174,231	[8],[9],[11],[15],[23]	168,968	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, GoldenTree Loan Opportunities IX, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		100,078	[1],[3],[5],[6],[7],[24]	116,952	[8],[9],[11],[12],[23]	100,078	[1],[3],[5],[6],[7],[24]
Cost		160,909	[2],[3],[5],[6],[7],[24]	167,080	[8],[9],[11],[15],[23]	160,909	[2],[3],[5],[6],[7],[24]
Investment, Identifier [Axis]: Structured Subordinated Notes, Madison Park Funding XIII, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		96,801	[1],[3],[5],[6],[7]	110,817	[8],[9],[11],[12],[23],[25]	96,801	[1],[3],[5],[6],[7]
Cost		126,831	[2],[3],[5],[6],[7]	133,019	[8],[9],[11],[15],[23],[25]	126,831	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Madison Park Funding XIV, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		147,832	[1],[3],[5],[6],[7]	152,446	[8],[9],[11],[12],[23]	147,832	[1],[3],[5],[6],[7]
Cost		185,448	[2],[3],[5],[6],[7]	189,166	[8],[9],[11],[15],[23]	185,448	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, OZLM XII, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		0	[1],[3],[5],[6],[7],[24],[26]	0	[8],[9],[11],[23],[25]	0	[1],[3],[5],[6],[7],[24],[26]
Cost		147,500	[2],[3],[5],[6],[7],[24],[26]	147,499	[8],[9],[11],[23],[25]	147,500	[2],[3],[5],[6],[7],[24],[26]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 30, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		264,251	[1],[3],[5],[6],[7]	284,479	[8],[9],[11],[23]	264,251	[1],[3],[5],[6],[7]
Cost		337,621	[2],[3],[5],[6],[7]	354,696	[8],[9],[11],[23]	337,621	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 31, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		123,450	[1],[3],[5],[6],[7]	138,013	[8],[9],[11],[23]	123,450	[1],[3],[5],[6],[7]
Cost		142,459	[2],[3],[5],[6],[7]	148,955	[8],[9],[11],[23]	142,459	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 36, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		304,798	[1],[3],[5],[6],[7]	320,718	[8],[9],[11],[23]	304,798	[1],[3],[5],[6],[7]
Cost		372,855	[2],[3],[5],[6],[7]	380,983	[8],[9],[11],[23]	372,855	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners 39, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		192,074	[1],[3],[5],[6],[7]	196,987	[8],[9],[11],[23]	192,074	[1],[3],[5],[6],[7]
Cost		204,167	[2],[3],[5],[6],[7]	204,843	[8],[9],[11],[23]	204,167	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XIV, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		170,442	[1],[3],[5],[6],[7],[24]	231,504	[8],[9],[11],[12],[23],[25]	170,442	[1],[3],[5],[6],[7],[24]
Cost		388,254	[2],[3],[5],[6],[7],[24]	401,984	[8],[9],[11],[15],[23],[25]	388,254	[2],[3],[5],[6],[7],[24]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XV, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		229,582	[1],[3],[5],[6],[7]	244,193	[8],[9],[11],[23]	229,582	[1],[3],[5],[6],[7]
Cost		275,894	[2],[3],[5],[6],[7]	283,882	[8],[9],[11],[23]	275,894	[2],[3],[5],[6],[7]
Investment, Identifier [Axis]: Structured Subordinated Notes, Octagon Investment Partners XXI,Ltd.
Schedule of Investments [Line Items]
Investments at fair value		182,209	[1],[3],[5],[6],[7],[17]	188,503	[8],[9],[11],[16],[23]	182,209	[1],[3],[5],[6],[7],[17]
Cost		239,496	[2],[3],[5],[6],[7],[17]	241,912	[8],[9],[11],[16],[23]	239,496	[2],[3],[5],[6],[7],[17]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO II, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		390,028	[1],[3],[5],[6],[7],[24],[26]	456,140	[8],[9],[11],[23],[25]	390,028	[1],[3],[5],[6],[7],[24],[26]
Cost		658,336	[2],[3],[5],[6],[7],[24],[26]	697,068	[8],[9],[11],[23],[25]	658,336	[2],[3],[5],[6],[7],[24],[26]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO VII-R, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		50,906	[1],[3],[5],[6],[7],[26]	45,533	[8],[9],[11],[23]	50,906	[1],[3],[5],[6],[7],[26]
Cost		62,953	[2],[3],[5],[6],[7],[26]	61,100	[8],[9],[11],[23]	62,953	[2],[3],[5],[6],[7],[26]
Investment, Identifier [Axis]: Structured Subordinated Notes, Sound Point CLO XVIII, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		131,432	[1],[3],[5],[6],[7],[26]	144,187	[8],[9],[11],[23]	131,432	[1],[3],[5],[6],[7],[26]
Cost		180,377	[2],[3],[5],[6],[7],[26]	190,013	[8],[9],[11],[23]	180,377	[2],[3],[5],[6],[7],[26]
Investment, Identifier [Axis]: Structured Subordinated Notes, THL Credit Wind River 2013-1 CLO, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		99,625	[1],[3],[5],[6],[7],[26]	103,140	[8],[9],[11],[23],[25]	99,625	[1],[3],[5],[6],[7],[26]
Cost		199,070	[2],[3],[5],[6],[7],[26]	199,070	[8],[9],[11],[23],[25]	199,070	[2],[3],[5],[6],[7],[26]
Investment, Identifier [Axis]: Structured Subordinated Notes, Venture XXXIV CLO, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		184,932	[1],[3],[5],[6],[7],[26]	196,420	[8],[9],[11],[23]	184,932	[1],[3],[5],[6],[7],[26]
Cost		215,422	[2],[3],[5],[6],[7],[26]	217,261	[8],[9],[11],[23]	215,422	[2],[3],[5],[6],[7],[26]
Investment, Identifier [Axis]: Structured Subordinated Notes, Voya CLO 2016-1, Ltd.
Schedule of Investments [Line Items]
Investments at fair value		152,343	[1],[3],[5],[6],[7],[26]	165,765	[8],[9],[11],[23]	152,343	[1],[3],[5],[6],[7],[26]
Cost		182,996	[2],[3],[5],[6],[7],[26]	190,279	[8],[9],[11],[23]	182,996	[2],[3],[5],[6],[7],[26]
Investment, Identifier [Axis]: Structured Subordinated Notes, Voya IM CLO 2013-1, Ltd
Schedule of Investments [Line Items]
Investments at fair value		118,835	[1],[3],[5],[6],[7],[17],[26]	121,672	[8],[9],[11],[16],[23]	118,835	[1],[3],[5],[6],[7],[17],[26]
Cost		$ 157,716	[2],[3],[5],[6],[7],[17],[26]	$ 164,330	[8],[9],[11],[16],[23]	$ 157,716	[2],[3],[5],[6],[7],[17],[26]

[1] Fair value is determined by the Company’s Board of Directors (see Note 2).

[2] See Note 6 for a discussion of the tax cost of the portfolio.

[3] Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 2 and 8 within the accompanying notes to the consolidated financial statements.

[4] Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

[5] Security is held by the Company and is pledged as collateral for the Senior Secured Revolving Credit Facility (see Note 10). The fair value of the investments used as collateral by the Company for the Senior Secured Revolving Credit Facility at September 30, 2023 was $17,090,718, representing 100% of our total investments.

[6] The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

[7] ndicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of September 30, 2023, 19% are non-qualifying assets as a percentage of total assets.

[8] Indicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. Of the Company’s total investments as of June 30, 2023, 17% are non-qualifying assets as a percentage of total assets.

[9] Investment(s) is (are) valued using significant unobservable inputs and are categorized as Level 3 investments in accordance with ASC 820. See Notes 3 and 9 within the accompanying notes to the consolidated financial statements.

[10] Represents non-income producing security that has not paid interest or dividends in the year preceding the reporting date.

[11] The securities in which the Company has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

[12] Fair value is determined by the Company’s Board of Directors (see Note 2).

[13] Security is held by Prospect Flexible Funding, LLC, our SPV, and is pledged as collateral for the Credit Facility and such security is not available as collateral to our general creditors (see Note 10). The fair values of the investments held by the SPV at June 30, 2023 was $16,278,891 representing 74% of our total investments.

[14] Syndicated investments which were originated by a financial institution and broadly distributed.

[15] See Note 6 for a discussion of the tax cost of the portfolio.

[16] Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments): Portfolio CompanyInvestmentFollow-On Acquisition DatesFollow-On Acquisitions (Excluding initial investment cost)Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)Senior Secured Loans-First Lien8/2/2019908,750 Octagon Investment Partners XXI, Ltd.Structured Subordinated Notes2/14/201935,015 Staples, Inc.Senior Secured Loans-First Lien2/3/2020980,031 ViaPath Technologies (f/k/a Global Tel*Link Corporation) Senior Secured Loans-First Lien7/9/2019, 7/16/20191,436,250 Voya IM CLO 2013-1, Ltd.Structured Subordinated Notes10/17/2017, 7/1/201920,584 Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)Senior Secured Loans-First Lien4/10/2019, 7/25/20191,327,000 

[17] Acquisition date represents the date of the Company's initial investment. Follow-on acquisitions have occurred on the following dates to arrive at the Company's current investment (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments): Portfolio CompanyInvestmentFollow-On Acquisition DatesFollow-On Acquisitions (Excluding initial investment cost)Aventiv Technologies, LLC (f/k/a Securus Technologies Holdings, Inc.)Senior Secured Loans-First Lien8/2/2019$908,750 CareerBuilder, LLCSenior Secured Loans-First Lien6/5/2020690,000 Octagon Investment Partners XXI, Ltd.Structured Subordinated Notes2/14/201935,015 Staples, Inc.Senior Secured Loans-First Lien2/3/2020980,031 ViaPath Technologies (f/k/a Global Tel*Link Corporation) Senior Secured Loans-First Lien7/9/2019, 7/16/20191,436,250 Voya IM CLO 2013-1, Ltd.Structured Subordinated Notes10/17/2017, 7/1/201920,584 Wellpath Holdings, Inc. (f/k/a Correct Care Solutions Group Holdings, LLC)Senior Secured Loans-First Lien4/10/2019, 7/25/20191,327,000 

[18] Syndicated investments which were originated by a financial institution and broadly distributed.

[19] Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 3 within the accompanying notes to the consolidated financial statements.

[20] The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option of the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the year ended June 30, 2023: Security NamePIK Rate - CapitalizedPIK Rate - Paid as cashMaximum Current PIK RateRising Tide Holdings, Inc. - First Lien Term Loan3.75 %— %3.75 %Shutterfly Finance, LLC - Second Lien Term Loan— %4.00 %4.00 %

[21] Investment is categorized as Level 2 investments in accordance with ASC 820. See Note 2 within the accompanying notes to the consolidated financial statements.

[22] The interest rate on these investments, excluding those on non-accrual, contains a paid in kind ("PIK") provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of and for the the three months ended September 30, 2023: Security NamePIK Rate - CapitalizedPIK Rate - Paid as cashMaximum Current PIK RateShutterfly Finance, LLC - Second Lien Term Loan4.00 %— %4.00 %

[23] The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

[24] The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

[25] The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

[26] The structured subordinated notes and preference/preferred shares are considered equity positions in the Collateralized Loan Obligations (“CLOs”), which is referred to as "Subordinated Structured Notes", or "SSN". The CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Industries and Geographical Locations Comprising Greater than 10% of Portfolio Fair Value (Details) - USD ($)	Sep. 30, 2023		Jun. 30, 2023
Concentration Risk [Line Items]
Cost	$ 21,385,175	[1]	$ 25,391,631
Fair Value	$ 17,090,718	[2]	$ 21,915,187
% of Portfolio	100.00%		100.00%
Healthcare & Pharmaceuticals
Concentration Risk [Line Items]
Cost	$ 2,463,150		$ 2,942,734
Fair Value	$ 2,528,662		$ 2,880,134
Healthcare & Pharmaceuticals | Investments at Fair Value | Industry Concentration Risk
Concentration Risk [Line Items]
% of Portfolio	15.00%		13.00%
Services: Business
Concentration Risk [Line Items]
Cost	$ 2,638,746		$ 2,647,846
Fair Value	$ 2,381,446		$ 2,507,919
Services: Business | Investments at Fair Value | Industry Concentration Risk
Concentration Risk [Line Items]
% of Portfolio	14.00%		11.00%
Services: Consumer
Concentration Risk [Line Items]
Cost			$ 3,004,329
Fair Value	$ 1,360,476		$ 2,741,742
Services: Consumer | Investments at Fair Value | Industry Concentration Risk
Concentration Risk [Line Items]
% of Portfolio			13.00%
Telecommunications
Concentration Risk [Line Items]
Cost	2,284,841		$ 2,283,486
Fair Value	$ 2,287,216		$ 2,324,213
Telecommunications | Investments at Fair Value | Industry Concentration Risk
Concentration Risk [Line Items]
% of Portfolio	13.00%		11.00%
Telecommunications
Concentration Risk [Line Items]
Cost	$ 13,998,438		$ 14,513,236
Fair Value	$ 9,893,394		$ 11,461,179
Telecommunications | Investments at Fair Value | Industry Concentration Risk
Concentration Risk [Line Items]
% of Portfolio	58.00%		52.00%

[1] See Note 6 for a discussion of the tax cost of the portfolio.

[2] Fair value is determined by the Company’s Board of Directors (see Note 2).

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Changes in Fair Value of Level 3 Investments (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	$ 19,785,715	$ 26,230,838
Net realized and unrealized gains (losses) on investments	(1,396,440)	(470,920)
Restructuring of investments	327,680
Payment-in-kind interest	21,994	162
Accretion (amortization) of purchase discount and premium, net	(170,437)	(56,463)
Repayments and sales of portfolio investments	(2,372,308)	(1,334,322)
Transfers into Level 3	0	1,702,829
Transfers out of Level 3	(710,099)	(1,407,887)
Fair value, ending balance	15,486,105	24,664,237
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	(1,383,946)	(483,731)
Investments | Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	(82,766)	0
Investments | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	(1,313,674)	(470,920)
Senior Secured Loans-First Lien
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	13,232,914	19,951,625
Net realized and unrealized gains (losses) on investments	(316,928)	(225,003)
Restructuring of investments	(669,880)
Payment-in-kind interest	0	0
Accretion (amortization) of purchase discount and premium, net	645	15,191
Repayments and sales of portfolio investments	(2,372,308)	(1,310,252)
Transfers into Level 3	0	1,702,829
Transfers out of Level 3	(710,099)	(1,407,887)
Fair value, ending balance	9,164,344	18,726,503
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	(304,434)	(236,930)
Senior Secured Loans-First Lien | Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	(82,766)	0
Senior Secured Loans-First Lien | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	(234,162)	(225,003)
Senior Secured Loans-Second Lien
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	1,416,049	511,464
Net realized and unrealized gains (losses) on investments	(57,046)	(18,186)
Restructuring of investments	0
Payment-in-kind interest	21,994	162
Accretion (amortization) of purchase discount and premium, net	(2,997)	2,402
Repayments and sales of portfolio investments	0	(13,342)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Fair value, ending balance	1,378,000	482,500
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	(57,046)	(19,070)
Senior Secured Loans-Second Lien | Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	0	0
Senior Secured Loans-Second Lien | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	(57,046)	(18,186)
Senior Secured Notes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	271,899
Net realized and unrealized gains (losses) on investments	18,370
Restructuring of investments	0
Payment-in-kind interest	0
Accretion (amortization) of purchase discount and premium, net	(117)
Repayments and sales of portfolio investments	0
Transfers into Level 3	0
Transfers out of Level 3	0
Fair value, ending balance	290,152
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	18,370
Senior Secured Notes | Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	0
Senior Secured Notes | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	18,370
Structured Subordinated Notes
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	4,386,757	5,126,749
Net realized and unrealized gains (losses) on investments	(185,499)	(150,209)
Restructuring of investments	0
Payment-in-kind interest	0	0
Accretion (amortization) of purchase discount and premium, net	(167,968)	(74,056)
Repayments and sales of portfolio investments	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Fair value, ending balance	4,033,290	4,902,484
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	(185,499)	(150,209)
Structured Subordinated Notes | Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	0	0
Structured Subordinated Notes | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	(185,499)	(150,209)
Equity/Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	478,096	641,000
Net realized and unrealized gains (losses) on investments	(855,337)	(77,522)
Restructuring of investments	997,560
Payment-in-kind interest	0	0
Accretion (amortization) of purchase discount and premium, net	0	0
Repayments and sales of portfolio investments	0	(10,728)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Fair value, ending balance	620,319	552,750
Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period	(855,337)	(77,522)
Equity/Other | Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	0	0
Equity/Other | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	$ (855,337)	$ (77,522)

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable Inputs Used in Fair Value Measurement of Level 3 Investments (Details) - USD ($)	Sep. 30, 2023		Jun. 30, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 17,090,718	[1]	$ 21,915,187
Senior Secured First Lien Debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	10,768,957		15,362,386
Senior Secured Second Lien Debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	1,378,000		1,416,049
Equity/Other
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	620,319		478,096
Structured Subordinated Notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	4,033,290		4,386,757
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	15,486,105		19,785,715
Level 3 | Senior Secured First Lien Debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	9,164,344		13,232,914
Level 3 | Senior Secured First Lien Debt | Sensitivity Analysis (Current Value Method)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 331,071		$ 499,544
Level 3 | Senior Secured First Lien Debt | Sensitivity Analysis (Current Value Method) | Enterprise Values | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	550.00%		400.00%
Level 3 | Senior Secured First Lien Debt | Sensitivity Analysis (Current Value Method) | Enterprise Values | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	650.00%		500.00%
Level 3 | Senior Secured First Lien Debt | Sensitivity Analysis (Current Value Method) | Enterprise Values | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	600.00%		500.00%
Level 3 | Senior Secured First Lien Debt | Discounted Cash Flow (Yield Analysis)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 8,833,273		$ 12,733,370
Level 3 | Senior Secured First Lien Debt | Discounted Cash Flow (Yield Analysis) | Market Yield | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	9.63%		8.91%
Level 3 | Senior Secured First Lien Debt | Discounted Cash Flow (Yield Analysis) | Market Yield | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	19.25%		20.07%
Level 3 | Senior Secured First Lien Debt | Discounted Cash Flow (Yield Analysis) | Market Yield | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	13.81%		13.12%
Level 3 | Senior Secured Second Lien Debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 1,378,000		$ 1,416,049
Level 3 | Senior Secured Second Lien Debt | Discounted Cash Flow (Yield Analysis)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 1,378,000		$ 1,416,049
Level 3 | Senior Secured Second Lien Debt | Discounted Cash Flow (Yield Analysis) | Market Yield | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	14.67%		16.00%
Level 3 | Senior Secured Second Lien Debt | Discounted Cash Flow (Yield Analysis) | Market Yield | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	14.98%		16.70%
Level 3 | Senior Secured Second Lien Debt | Discounted Cash Flow (Yield Analysis) | Market Yield | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	14.83%		16.40%
Level 3 | Senior Secured Notes | Discounted Cash Flow (Yield Analysis)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 290,152		$ 271,899
Level 3 | Senior Secured Notes | Discounted Cash Flow (Yield Analysis) | Market Yield | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	32.75%		33.96%
Level 3 | Senior Secured Notes | Discounted Cash Flow (Yield Analysis) | Market Yield | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	33.34%		34.28%
Level 3 | Senior Secured Notes | Discounted Cash Flow (Yield Analysis) | Market Yield | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	33.04%		34.12%
Level 3 | Equity/Other
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 620,319		$ 478,096
Level 3 | Equity/Other | Enterprise Value Waterfall (Market Approach)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 620,319		$ 478,096
Level 3 | Equity/Other | Enterprise Value Waterfall (Market Approach) | EBITDA multiples (x) | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	40.00%		525.00%
Level 3 | Equity/Other | Enterprise Value Waterfall (Market Approach) | EBITDA multiples (x) | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	925.00%		925.00%
Level 3 | Equity/Other | Enterprise Value Waterfall (Market Approach) | EBITDA multiples (x) | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	791.00%		842.00%
Level 3 | Structured Subordinated Notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 4,033,290		$ 4,386,757
Level 3 | Structured Subordinated Notes | Discounted Cash Flow (Yield Analysis)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 4,033,290		$ 4,386,757
Level 3 | Structured Subordinated Notes | Discounted Cash Flow (Yield Analysis) | Discount Rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	17.14%		8.35%
Level 3 | Structured Subordinated Notes | Discounted Cash Flow (Yield Analysis) | Discount Rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	32.91%		33.78%
Level 3 | Structured Subordinated Notes | Discounted Cash Flow (Yield Analysis) | Discount Rate | Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Input	24.83%		24.04%

[1] Fair value is determined by the Company’s Board of Directors (see Note 2).

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REVOLVING CREDIT FACILITIES (Details) - USD ($)						2 Months Ended	3 Months Ended		6 Months Ended			12 Months Ended			15 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	May 01, 2023	Apr. 30, 2023	May 16, 2019	Oct. 25, 2023	Sep. 30, 2023	Sep. 30, 2022	Nov. 15, 2021	May 14, 2021	Nov. 15, 2020	Aug. 25, 2023	Jun. 30, 2023	Jun. 30, 2022	Aug. 25, 2022
Line of Credit Facility [Line Items]
Monthly payments			$ 2,000,000	$ 4,000,000
Percentage of total assets at fair value	100.00%	100.00%
Debt financing costs	$ 877,497	$ 230,022					$ 877,497						$ 230,022
Interest expense							290,213	$ 269,258
Extinguishment of debt							$ (66,844)	0
Asset coverage ratio	311.00%	271.00%					311.00%						271.00%
Investments Held Benchmark | Product Concentration Risk | Net Assets
Line of Credit Facility [Line Items]
Percentage of total assets at fair value							100.00%						74.00%
Revolving Credit Facility | Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity					$ 50,000,000
Credit facility outstanding balance	$ 0	$ 8,600,000					$ 0						$ 8,600,000
Collateralized financings	0	16,278,891					0						16,278,891
Cash collateral	0	61,833					0						61,833
Debt issuance costs, gross	636,342						636,342
Debt financing costs	0	230,022					0						230,022
Interest expense							230,022	269,258
Extinguishment of debt							$ (66,844)	$ 0
Revolving Credit Facility | Credit Facility | Investments Held Benchmark | Product Concentration Risk | Net Assets
Line of Credit Facility [Line Items]
Percentage of total assets at fair value							0.00%							74.00%
Revolving Credit Facility | Credit Facility | SOFR
Line of Credit Facility [Line Items]
Basis spread												2.20%
Revolving Credit Facility | Credit Facility | SOFR | Forecast
Line of Credit Facility [Line Items]
Basis spread						1.55%
Revolving Credit Facility | Credit Facility | LIBOR
Line of Credit Facility [Line Items]
Basis spread					1.55%				2.20%	2.20%	2.20%	2.20%			2.20%
Senior Secured Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility outstanding balance	$ 6,200,000	$ 0					$ 6,200,000						$ 0
Senior Secured Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Asset coverage ratio	150.00%						150.00%
Senior Secured Revolving Credit Facility | Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 20,000,000						$ 20,000,000
Credit facility outstanding balance	6,200,000						6,200,000
Collateralized financings	17,090,718						17,090,718
Cash collateral	1,448,540						1,448,540
Debt issuance costs, gross	884,762						884,762
Debt financing costs	877,497						877,497
Interest expense							60,191
Additional amount	150,000,000						150,000,000
Swingline maximum outstanding amount	$ 5,000,000						$ 5,000,000
Stated rate	2.50%						2.50%
Commitment fee							0.375%
Average stated interest rate							7.50%	5.03%
Average outstanding balance							$ 6,409,677	$ 20,103,261
Senior Secured Revolving Credit Facility | Credit Facility | Level 2
Line of Credit Facility [Line Items]
Lines of credit, fair value	$ 6,200,000						$ 6,200,000
Senior Secured Revolving Credit Facility | Credit Facility | Investments Held Benchmark | Product Concentration Risk | Net Assets
Line of Credit Facility [Line Items]
Percentage of total assets at fair value							100.00%
Senior Secured Revolving Credit Facility | Credit Facility | SOFR
Line of Credit Facility [Line Items]
Basis spread							0.10%
Senior Secured Revolving Credit Facility | Credit Facility | Prime Rate
Line of Credit Facility [Line Items]
Basis spread							1.50%

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FINANCIAL HIGHLIGHTS (Details) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Investment Company, Financial Highlights [Roll Forward]
Net asset value, beginning balance (in dollars per share)	$ 6.10	$ 7.03	$ 7.03	$ 8.36		$ 8.28	$ 9.88	$ 9.89
Net investment income (loss) (in dollars per share)	(0.09)	0.03	0.2	0.31		(0.08)	0.24	0.91
Net realized and unrealized (losses) on investments (in dollars per share)	(0.43)	(0.25)	(0.65)	(1.05)		0.82	(1.22)	(1.11)
Net realized (losses) on extinguishment of debt (in dollars per share)	(0.03)	0
Net decrease in net assets resulting from operations (in dollars per share)	(0.55)	(0.22)	(0.45)	(0.74)		0.74	(0.98)	(0.20)
Distributions
Return of capital distributions (in dollars per share)	(0.11)	(0.04)	(0.13)	(0.16)		(0.46)	(0.57)	(0.54)
Distributions of net investment income (in dollars per share)	0	(0.10)	(0.35)	(0.43)		(0.19)	(0.15)	(0.03)
Total Distributions (in dollars per share)	(0.11)	(0.14)	(0.48)	(0.59)		(0.65)	(0.72)	(0.57)
Offering costs (in dollars per share)			0	0		0	0	0.61
Other (in dollars per share)	0	0	0	0		(0.01)	0.10	0.15
Net asset value, ending balance (in dollars per share)	$ 5.44	$ 6.67	$ 6.10	$ 7.03		$ 8.36	$ 8.28	$ 9.88
Total return based on net asset value	(9.26%)	(3.16%)	(6.67%)	(9.60%)		9.03%	(10.13%)	7.52%
Ratios/Supplemental Data
Net assets at end of period	$ 13,106,824	$ 15,845,448	$ 14,693,862	$ 16,700,975	[1]	$ 19,947,807	$ 19,558,400	$ 23,410,715
Average net assets	$ 13,900,344	$ 16,273,212	$ 15,303,274	$ 18,912,658		$ 20,055,524	$ 21,234,189	$ 12,536,923
Average shares outstanding - Basic (in shares)	2,404,057	2,375,375	283,649	2,380,229		2,377,461	2,366,005	1,297,582
Average shares outstanding - Diluted (in shares)	2,404,057	2,375,375	283,649	2,380,229		2,377,461	2,366,005	1,297,582
Ratio to average net assets:
Total annual expenses	24.48%	20.56%	21.06%	15.70%		20.07%	16.41%	23.48%
Total annual expenses (after expense limitation agreement)	22.09%	17.79%	18.30%	12.47%		18.44%	13.07%	9.11%
Net investment income (loss)	(6.40%)	1.76%	3.20%	3.95%		(0.93%)	2.67%	2.15%
Portfolio Turnover	0.00%	0.00%	0.00%	35.34%		17.83%	24.56%	93.42%
Asset coverage ratio	311.00%		271.00%

[1] Certain reclassifications have been made in the presentation of prior year and prior quarter amounts to conform to the presentation for the current fiscal year. In addition, we have not yet finalized return of capital estimates for the current period. See Note 2 and 6 within the accompanying notes to the consolidated financial statements for further discussion.

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NET INCREASE (DECREASE) IN NET ASSETS PER SHARE (Details) - USD ($)		3 Months Ended		12 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net increase (decrease) in net assets resulting from operations - basic		$ (1,322,420)	$ (517,315)
Weighted average shares of common stock outstanding - basic (in shares)		2,404,057	2,375,375	283,649	2,380,229	2,377,461	2,366,005	1,297,582
Weighted average shares of common stock outstanding - diluted (in shares)		2,404,057	2,375,375	283,649	2,380,229	2,377,461	2,366,005	1,297,582
Earnings (loss) per share - basic (in dollars per share)	[1]	$ (0.55)	$ (0.22)
Earnings (loss) per share - diluted (in dollars per share)	[1]	$ (0.55)	$ (0.22)

[1] For the the three months ended September 30, 2023 and 2022, the weighted average common shares outstanding were 2,404,057 and 2,375,375, respectively.

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SUBSEQUENT EVENTS (Details) - USD ($)												1 Months Ended	3 Months Ended				12 Months Ended
	Jan. 05, 2024	Dec. 01, 2023	Nov. 03, 2023	Nov. 02, 2023	Oct. 30, 2023	Sep. 29, 2023	Aug. 25, 2023	Jul. 28, 2023	Sep. 30, 2022	Aug. 26, 2022	Jul. 29, 2022	Nov. 14, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2023	Nov. 13, 2023	Oct. 20, 2023
Subsequent Event [Line Items]
Shares issued through reinvestment of distributions													$ 112,005	$ 113,374		$ 153,281
Repurchase of common shares (in shares)													19,963		23,434	21,818	45,252
Repurchase price (usd per share)													$ 6.09		$ 6.65	$ 6.99
Aggregate purchase price													$ 121,569		$ 155,832	$ 152,505	$ 308,337
PFLOAT Class A Common Shares, per share (usd per share)						$ 0.04095	$ 0.03260	$ 0.03260	$ 0.04720	$ 0.04244	$ 0.05305
Senior Secured Revolving Credit Facility
Subsequent Event [Line Items]
Credit facility outstanding balance													$ 6,200,000	$ 0			$ 0
Subsequent Event
Subsequent Event [Line Items]
Shares issued through reinvestment of dividends (in shares)												12,765
Shares issued through reinvestment of distributions												$ 77,740
Shares authorized to be repurchased (in shares)					283,611
Repurchase of common shares (in shares)					21,113
Repurchase price (usd per share)					$ 5.37
Aggregate purchase price					$ 113,374
Targeted annualized distribution rate																		7.00%	7.00%
Weekly cash dividend paid (usd per share)																		$ 0.00730	$ 0.00819
PFLOAT Class A Common Shares, per share (usd per share)	$ 0.03650	$ 0.02920	$ 0.03276
Subsequent Event | Senior Secured Revolving Credit Facility
Subsequent Event [Line Items]
Repayments of lines of credit				$ 500,000
Credit facility outstanding balance												$ 5,700,000