FAIR VALUE (Tables)

The following tables present fair value measurements of loans held at fair value as of September 30, 2023 and December 31, 2022:


	Fair Value Measurement as of September 30, 2023
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	70,010,878	$	—	$	—	$	70,010,878
Total	$	70,010,878	$	—	$	—	$	70,010,878


	Fair Value Measurement as of December 31, 2022
	Total		Level 1		Level 2		Level 3
Loans held at fair value	$	99,226,051	$	—	$	—	$	99,226,051
Total	$	99,226,051	$	—	$	—	$	99,226,051

The following table presents changes in loans that use Level 3 inputs as of and for the nine months ended September 30, 2023:


	Nine months ended September 30, 2023
Total loans using Level 3 inputs at December 31, 2022	$	99,226,051
Realized gains (losses) on loans at fair value, net	(1,213,416)
Change in unrealized gains (losses) on loans at fair value, net	(1,152,810)
Additional fundings	1,881,840
Loan repayments	(33,032,561)
Accretion of original issue discount	1,308,253
PIK interest	2,993,521
Total loans using Level 3 inputs at September 30, 2023	$	70,010,878

The following tables summarize the significant unobservable inputs the Company used to value the loans categorized within Level 3 as of September 30, 2023 and December 31, 2022. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values.

As of September 30, 2023

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

52,722,454

Yield analysis

Market yield

32.61% - 39.06%

34.05%

Senior term loans

17,288,424

Market approach

Revenue multiple

0.60x - 0.80x

0.70x

Total investments

70,010,878

As of December 31, 2022

Unobservable Input

Fair Value

Primary Valuation Techniques

Input

Estimated Range

Weighted Average

Senior term loans

99,226,051

Yield analysis

Market yield

19.99% - 31.72%

21.81%

Total investments

99,226,051

The following table details the book value and fair value of the Company’s financial instruments not recognized at fair value in the unaudited interim consolidated balance sheet as of September 30, 2023:


	As of September 30, 2023
	Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	$	73,204,542	$	73,204,542
Loans held for investment at carrying value	$	308,011,076	$	296,997,094
Loan receivable held at carrying value	$	2,040,058	$	1,020,872
Financial liabilities:
Senior notes payable, net	$	87,864,345	$	75,600,000