Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Other Securities (Tables)

v2.4.0.6
Fair Value of Other Securities (Tables)
3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Assets and liabilities measured on a recurring basis
The following tables provide the fair value measurements of applicable Company assets and liabilities by level within the fair value hierarchy as of March 31, 2013, November 30, 2012 and December 31, 2012. These assets and liabilities are measured on a recurring basis.
March 31, 2013
 
 
 
 
Fair Value

 
March 31, 2013
 
Level 1
 
Level 2
 
Level 3
Investments:
 
 
 
 
 
 
 
 
Trading securities
 
$

 
$

 
$

 
$

Other equity securities
 
21,895,854

 

 

 
21,895,854

Total Assets
 
$
21,895,854

 
$

 
$

 
$
21,895,854

November 30, 2012
 
 
November 30, 2012
 
Fair Value

 
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Trading securities
 
$
55,219,411

 
$
27,480,191

 
$
27,739,220

 
$

Other equity securities
 
19,866,621

 

 

 
19,866,621

Total Assets
 
$
75,086,032

 
$
27,480,191

 
$
27,739,220

 
$
19,866,621

December 31, 2012
 
 
December 31, 2012
 
Fair Value

 
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Trading securities
 
$
4,318,398

 
$
4,318,398

 
$

 
$

Other equity securities
 
19,707,126

 

 

 
19,707,126

Total Assets
 
$
24,025,524

 
$
4,318,398

 
$

 
$
19,707,126

The changes for all Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs
The changes for all Level 3 securities measured at fair value on a recurring basis using significant unobservable inputs for the three-month periods ended March 31, 2013 and February 29, 2012 and for the one-month transition period ended December 31, 2012 are as follows:
 
For the Three-Month Periods Ended
 
For the One-Month Transition Period Ended December 31, 2012

March 31, 2013
 
February 29, 2012
 
Fair value beginning balance
$
19,707,126

 
$
41,856,730

 
$
19,866,621

Total realized and unrealized gains (losses) included in net income
2,425,986

 
6,069,194

 
(159,495
)
Return of capital adjustments impacting cost basis of securities
(237,258
)
 
(656,195
)
 

Fair value ending balance
$
21,895,854

 
$
47,269,729

 
$
19,707,126

Changes in unrealized gains (losses), included in net income, relating to securities still held (1)
$
2,425,986

 
$
6,069,194

 
$
(159,495
)
(1) Located in Net realized and unrealized gain (loss) on other equity securities in the Statements of Income
Quantitative table for Valuation Techniques
The following table summarizes the significant unobservable inputs that the Company uses to value its portfolio investments categorized as Level 3 as of March 31, 2013.
Quantitative Table for Valuation Techniques 
Significant Unobservable Inputs Used To Value Portfolio Investments
 
 
 
 
 
 
Unobservable Inputs
 
Range
 
Weighted Average
Assets at Fair Value
 
Fair Value
 
Valuation Technique
 
 
Low
 
High
 
Other equity securities, at fair value
 
$
21,895,854

 
Public company historical EBITDA analysis
 
Historical EBITDA Valuation Multiples
 
9.0x
 
12.3x
 
10.7x
 
 
 
 
Public company projected EBITDA analysis
 
Projected EBITDA Valuation Multiples
 
8.8x
 
11.4x
 
10.1x
 
 
 
 
M&A company analysis
 
EV/LTM 2012 EBITDA
 
9.0x
 
10.3x
 
9.7x
 
 
 
 
Discounted cash flow
 
Weighted Average Cost of Capital
 
9.5%
 
14.0%
 
11.8%
Financial instruments financial assets and financial liabilities at fair value
Line of Credit — The carrying value of the line of credit approximates the fair value due to its short term nature.
Carrying and Fair Value Amounts
 
 
Level within fair value hierarchy
 
March 31, 2013
 
November 30, 2012
 
December 31, 2012
 
 
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Financial Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
Level 1
 
$
18,196,151

 
$
18,196,151

 
$
14,333,456

 
$
14,333,456

 
$
17,680,783

 
$
17,680,783

Escrow receivable
 
Level 2
 
$
698,729

 
$
698,729

 
$
698,729

 
$
698,729

 
$
698,729

 
$
698,729

Financial Liabilities:
 

 

 

 

 

 

Long-term debt
 
Level 2
 
$
70,000,000

 
$
70,000,000

 
$

 
$

 
$
70,000,000

 
$
70,000,000

Line of credit
 
Level 1
 
$
139,397

 
$
139,397

 
$
120,000

 
$
120,000

 
$

 
$