Statements of Cash Flows
Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Statements of
Cash Flows. The cash amount shown in the Statements of Cash Flows is the amount included within the Companys Statements of Assets and Liabilities and includes cash on hand at its custodian bank.
Cash and Cash Equivalents
Company considers liquid assets deposited with a bank, money market funds, and certain short-term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial
institutions that are readily accessible to pay Company expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates fair value. The value of cash equivalents denominated in foreign
currencies, if any, is determined by converting to U.S. dollars on the date of the Statements of Assets and Liabilities. As of March 31, 2021 and December 31, 2020, the Company had cash and cash equivalents of $1,026,042 and $729,467,
respectively. As of March 31, 2021 and December 31, 2020, $777,267 and $525,975 was held in the State Street U.S. Government Money Market Fund, and $248,775 and $203,492 was held in a custodial account with State Street Bank and Trust
Securities Sold Short and Restricted Cash
The Company may sell securities short. A security sold short is a transaction in which the Company sells a security it does not own in
anticipation that the market price of that security will decline. When the Company sells a security short, it must borrow the security sold short from a broker-dealer and deliver it to the buyer upon conclusion of the transaction. The Company may
have to pay a fee to borrow particular securities and is often obligated to pay over any dividends or other payments received on such borrowed securities. Cash held as collateral for securities sold short is classified as restricted cash on the
Statements of Assets and Liabilities. Securities held as collateral for securities sold short are shown on the Schedule of Investments for the Company, as applicable. As of March 31, 2021 and December 31, 2020, the Company did not have any
securities sold short.
When securities are sold short, the Company intends to limit exposure to a possible market decline in the value of
its portfolio companies through short sales of securities that the Adviser believes possess volatility characteristics similar to those being hedged. In addition, the Company may use short sales for
non-hedging purposes to pursue its investment objective. Subject to the requirements of the 1940 Act and the Code, the Company will not make a short sale if, after giving effect to such sale, the market value
of all securities sold short by the Company exceeds 25% of the value of its total assets.
Other Fee Income
Fee income may consist of origination/closing fees, amendment fees, administrative agent fees, transaction
break-up fees and other miscellaneous fees. Origination fees, amendment fees, and other similar fees are non-recurring fee sources. Such fees are received on a
transaction by transaction basis and do not constitute a regular stream of income. For the three months ended March 31, 2021 and March 31, 2020, the Company recognized $0 and $2,976 of fee income, respectively.
Fair Value of Financial Instruments
It is the Companys policy to hold the investments at fair value. Accounting Standards Codification Topic 820, Fair Value Measurements and
Disclosure (ASC Topic 820) defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also
establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, which includes inputs
such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and Level 3, defined as unobservable inputs for which little or no market data exists,
therefore requiring an entity to develop its own assumptions.
The Company determines the net asset value of its investment portfolio each
quarter, or more frequently as needed. Securities that are publicly-traded are valued at the reported closing price on the valuation date. Securities that are not publicly-traded are valued at fair value as determined in good faith by the Board of
Directors of the Company (the Board) or by the Adviser, pursuant to board-approved policies and procedures. In connection with that determination, the Adviser will provide the Board with portfolio company valuations which are based on
relevant inputs, including indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts, and valuations prepared by third-party valuation services.