SUI Group Holdings Ltd. Fair Value Disclosure
NOTE 6 — FAIR VALUE OF PORTFOLIO INVESTMENTS
The following table presents the fair value measurements of our portfolio investments by major class, as of December 31, 2025, according to the fair value hierarchy:
As of December 31, 2025 | ||||||||||||||||
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||
|
|
|
|
|
|
| ||||||||||
Short-term non-banking loans |
| $ | — |
|
| $ | — |
|
| $ | 3,413,975 |
|
| $ | 3,413,975 |
|
Commercial business loans |
|
| — |
|
|
| — |
|
|
| 10,244,122 |
|
|
| 10,244,122 |
|
Common stock |
|
| 955,747 |
|
|
| — |
|
|
| — |
|
|
| 955,747 |
|
Other equity |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total |
| $ | 955,747 |
|
| $ | — |
|
| $ | 13,658,097 |
|
| $ | 14,613,844 |
|
The following table presents the fair value measurements of our portfolio investments by major class, as of December 31, 2024, according to the fair value hierarchy:
As of December 31, 2024 | ||||||||||||||||
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||
|
|
|
|
|
|
| ||||||||||
Short-term non-banking loans |
| $ | — |
|
| $ | — |
|
| $ | 13,006,231 |
|
| $ | 13,006,231 |
|
Common stock |
|
| 447,330 |
|
|
| — |
|
|
| — |
|
|
| 447,330 |
|
Other equity |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total |
| $ | 447,330 |
|
| $ | — |
|
| $ | 13,006,231 |
|
| $ | 13,453,561 |
|
The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the year ended December 31, 2025:
|
| Balance |
| |
Balance as of January 1, 2025 |
| $ | 13,006,231 |
|
Net change in unrealized loss |
|
| (2,748,134 | ) |
Purchases |
|
| 7,900,100 |
|
Sales and redemptions |
|
| (4,500,100 | ) |
Balance as of December 31, 2025 |
| $ | 13,658,097 |
|
Of the total net change in unrealized loss presented in the reconciliation, $2,748,773 relates to Level 3 portfolio investment still held as of December 31, 2025.
The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 portfolio investment assets for the year ended December 31, 2024:
For the year ended December 31, 2024 | ||||||||||||||||
|
| Short-Term Non-banking Loans |
|
| Preferred Stock |
|
| Common Stock |
|
| Other Equity |
| ||||
Balance as of January 1, 2024 |
| $ | 16,961,766 |
|
| $ | 265,000 |
|
| $ | — |
|
| $ | 10,000 |
|
Net change in unrealized loss |
|
| 401,966 |
|
|
| 785,000 |
|
|
| (150,000 | ) |
|
| (10,000 | ) |
Purchases and other adjustments to cost |
|
| 4,623,437 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Sales and redemptions |
|
| (8,720,000 | ) |
|
| — |
|
|
|
|
|
|
| — |
|
Realized gain (loss) |
|
| (100,000 | ) |
|
| (900,000 | ) |
|
| — |
|
|
| — |
|
Conversion from preferred to Common Stock |
|
| — |
|
|
| (150,000 | ) |
|
| 150,000 |
|
|
| — |
|
Transfers between level 3 and level 1 |
|
| (160,938 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Balance as of December 31, 2024 |
| $ | 13,006,231 |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
The net change in unrealized depreciation for the year ended December 31, 2024, attributable to Level 3 portfolio investments still held as of December 31, 2024 is $83,496.
The following table lists our Level 3 investments held as of December 31, 2025, and the unobservable inputs used to determine their valuation:
Security Type |
| 12/31/25 FMV |
|
| Valuation Technique |
| Unobservable Inputs |
| Range | ||
Short-Term Non-banking Loans |
| $ | 3,413,975 |
|
| discounted cash flow |
| determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness, including assessment related to individual note creditworthiness |
| 18-24% | |
Commercial Business Loans |
|
| 10,244,122 |
|
| discounted cash flow |
| determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness |
| 18-24% | |
Other Equity |
|
| — |
|
| last secured funding known by company |
| economic changes since last funding |
|
| |
|
| $ | 13,658,097 |
|
|
|
|
|
|
| |
The following table lists our Level 3 investments held as of December 31, 2024, and the unobservable inputs used to determine their valuation:
Security Type |
| 12/31/24 FMV |
|
| Valuation Technique |
| Unobservable Inputs |
| Range | ||
Short-Term Non-banking Loans |
| $ | 13,006,231 |
|
| discounted cash flow |
| determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness |
| 15-24% | |
Other Equity |
|
| — |
|
| last secured funding known by company |
|
|
|
| |
|
| $ | 13,006,231 |
|
|
|
|
|
|
| |
There were no transfers between levels during the years ended December 31, 2025. There was one transfer between levels during 2024, which resulted from a loan that was converted into equity securities of a publicly traded entity. Upon conversion, the valuation inputs became observable, and the investment was transferred from Level 3 to Level 1 within the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Apr 2, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2021 | Mar 14, 2022 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.