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Tridan Corp.

Financial Statements

October 31, 2017 and 2016

 

Tridan Corp.

Contents

October 31, 2017 and 2016   

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ACCOUNTANT’S COMPILATION REPORT

To the Shareholders and Board of Directors

Tridan Corp.

We have compiled the accompanying statements of assets and liabilities and schedules of investments in municipal obligations of Tridan Corp. as of October 31, 2017 and 2016, and the related statements of operations for the six months ended October 31, 2017 and 2016 and the related statement of changes in net assets for the six months ended October 31, 2017. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America.

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.

Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements.

The statement of changes in net assets for the year ended April 30, 2017 was derived from financial statements that were audited by another accounting firm.  Their report, dated June 22, 2017, expressed an unqualified opinion thereon, but they have not performed any auditing procedures since that date.

We are not independent with respect to Tridan Corp.

 

TRIDAN CORP.

 

STATEMENTS OF ASSETS AND LIABILITIES

OCTOBER 31, 2017 AND 2016

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		2017				2016
Assets
Investments in municipal obligations, at fair value (original cost - $37,699,813 and $37,773,993, respectively) (amortized cost - $35,533,125 and $35,792,599, respectively)		$	36,814,881			$	37,702,132
Cash and cash equivalents			173,581				321,586
Prepaid expenses and other current assets			2,576				6,294
Accrued interest receivable			511,883				482,169
Total assets		$	37,502,921			$	38,512,181
Liabilities
Accrued investment advisory fees		$	38,264			$	39,733
Accrued fees - affiliate			19,143				18,718
Accrued other			12,270				12,775
Common stock redemption payable			4,479				389,284
Total liabilities			74,156				460,510
Net assets		$	37,428,765			$	38,051,671
Analysis of net assets
Common stock, at $.02 par value, 6,000,000 shares authorized		$	63,982			$	63,982
Paid-in capital			37,816,314				37,816,314
Treasury stock			(1,685,302	)			(1,674,181	)
Distributable earnings:
Over distributed net investment income			(47,982	)			(53,708	)
Undistributed capital gains (losses)			-				(10,267	)
Unrealized appreciation of investments, net			1,281,753				1,909,531
Net assets [equivalent to $ 12.24 and $12.44 per share, respectively, based on 3,058,739.4392 shares and 3,059,643.6822 shares of common stock outstanding, respectively]		$	37,428,765			$	38,051,671

 

TRIDAN CORP.

 

Schedules of Investments in Municipal Obligations

October 31, 2017 and 2016

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						2017												2016
		Principal Amount				Amortized Cost				Fair Value				Principal Amount				Amortized Cost				Fair Value
Insured
N.Y. Bond Bank Agency SCH Purpose Revenue 5.0% due December 1, 2019			300,000				324,958				323,610				300,000				336,928				334,758
N.Y.S. Dormitory Authority Revs Non St Supported Debt St Johns Univ - Insd 5.25% due July 1, 2021			1,000,000				1,030,823				1,141,250				1,000,000				1,039,157				1,179,270
N.Y.S. Dormitory Authority Revs City University Sys Ref Cons 5th Gen 5.5% due July 1, 2019			1,000,000				1,014,668				1,072,850				1,000,000				1,024,010				1,117,550
Sachem Central School District NY Holbrook Ref Unlimited Tax 5.25% due October 15, 2019			500,000				509,269				539,470				500,000				513,941				561,370
State of NY Dormitory Auth Personal Inc Tax Rev Ref Educ.5.50 % due March 15, 2025			500,000				534,250				624,785				500,000				538,892				643,080
			3,300,000				3,413,968				3,701,965				3,300,000				3,452,928				3,836,028

Revenue Backed
City of New York NY Municipal Water Fin Auth Wtr. & Sewer Rev Fiscal 2009 (Par Call June 15, 2018 @100) 5.625% due June 15, 2024			1,000,000				998,206				1,028,350				1,000,000				996,873				1,076,850
Erie County NY Fiscal Stability Sales Tax 5.00% due June 15, 2024			165,000				202,625				199,064				-				-				-
City of New York NY Transitional Finance Auth Rev Sub Future Tax Secured (Par Call November 1, 2019 @100):
5.00% due November 1, 2020			500,000				515,075				538,252				500,000				521,222				559,515
5.00% due November 1, 2021			1,000,000				1,027,355				1,076,830				1,000,000				1,040,330				1,119,030
NY City Transitional Financial Authority Rev Future Tax (Par Call November 1, 2022 @100)5.00% due November 1, 2026			550,000				589,152				642,922				550,000				596,970				665,676
Brookhaven NY Limited Tax 4.0% due March 15, 2023			1,000,000				1,150,508				1,128,500				1,000,000				1,178,380				1,166,050
Erie Count Indvl Dev Agency 5.0% due May 1, 2025			750,000				939,245				911,168				750,000				949,124				941,993
NYC NY Cultural Res-Museum of Modern Art 4.0% due February 1, 2023			400,000				458,337				450,704				400,000				469,427				464,164
Longwood NY Central School District Suffolk 5.00% due March 15, 2019			185,000				195,183				194,855				185,000				202,617				202,706
Schnectady CNTY NY Various Purposes LTD Tax 5.0% due December 15, 2020			800,000				888,531				893,152				800,000				916,851				928,616

 

 

		2017												2016
		Principal  Amount				Amortized  Cost				Fair  Value				Principal  Amount				Amortized  Cost				Fair  Value
Revenue Backed (continued)
Schnectady CNTY NY Various Purposes LTD Tax 5.0% due December 15, 2022			300,000				348,978				352,485				300,000				358,532				367,353
Harrison NY REF Public Impt LTD Tax 5.0% due December 15, 2023			100,000				126,059				120,390				100,000				125,840				123,892
Saratoga County NY Ref LTD Tax 5.0% due July 15, 2023			100,000				126,804				119,301				100,000				126,577				124,351
SNT Lawrence CNTY NY REF Limited Tax (Par Call May 15, 2025) 5.0% due May 15, 2026			105,000				122,578				126,039				105,000				124,759				128,786
NYC NY TR Cultural Res-Museum of Modern Art 4.0% due April 01, 2026			500,000				589,604				581,285				500,000				600,535				593,465
Middele CTRY NY central School District-AT Centereach 5.0% due August 01, 2020			150,000				165,608				165,962				150,000				171,277				170,780
Laurens NY Central School District (Par Call June 15, 2025)4.0% due June 15, 2028			305,000				334,045				342,545				305,000				337,853				351,115
Nassau County Gen Impt Unltd Tax (Par Call October 1, 2020 @100) 4.00% due October 1, 2022			550,000				560,654				586,778				550,000				564,717				601,832
Brookhaven NY REF Unlimited Tax 5.00% due March 15, 2025			500,000				610,292				613,295				-				-				-
NY ST Environmental FACS 5.00% due June 15, 2026			1,300,000				1,559,629				1,617,824				-				-				-
State of NY Local Gov't (Par Call April 1, 2018 @100) 5.0% due April 1, 2019			200,000				198,997				203,310				200,000				202,075				211,692
Brookhaven New York Unlimited Tax 5.00% due November 15, 2019			450,000				470,452				485,712				450,000				480,459				504,896
State of NY Dormitory Auth State Pers. Inc. Tax 5.5% due March 15, 2026			200,000				242,096				253,518				200,000				247,121				261,220
State of NY Dormitory Auth Lease Rev (Par Call August 15, 2020 @100) 5.00 % due August 15, 2023			420,000				422,009				462,865				420,000				422,989				476,242
New York,  New York Unlimited Tax (Par Call August 1, 2020 @100) 5.00 % due August 1, 2023			510,000				530,311				561,479				510,000				537,681				581,267

 

 

		2017												2016
		Principal  Amount				Amortized  Cost				Fair  Value				Principal  Amount				Amortized  Cost				Fair  Value
Revenue Backed (continued)
New York,  New York Unlimited Tax (Par Call August 1, 2019 @100) 5.00 % due August 1, 2026			350,000				351,302				372,796				350,000				352,010				385,893
City of New York Municipal Fin Auth Wtr & Swr Rev (Par Call June 15, 2019 @100) 5.00 % due June 15, 2027			500,000				504,919				530,710				500,000				507,946				552,130
Port Authority of NY and NJ 5.375 % due March 1, 2028			150,000				153,238				183,568				150,000				153,551				187,673
NYS Dormitory (Par Call July 1, 2018 @100) 5.00 % due July 1, 2029			300,000				300,000				307,857				300,000				300,000				320,505
Util. Debt Securitization (Par Call June 15, 2024 @100) 5.00% due December 15, 2026			500,000				587,114				609,440				-				-				-
Erie County NY Fiscal Stability Sales Tax (Par Call June 15, 2027 @100) 5.00% due June 15, 2029			1,000,000				1,233,027				1,232,760				-				-				-
Greece NY Central School District Unlimited Tax (Par Call December 15, 2022 @100) 5.0% due December 15, 2023			500,000				551,444				580,560				500,000				561,086				600,180
Rensselaer Cnty, NY Limited Tax 5.00% due September 1, 2024			100,000				125,349				121,808				100,000				125,135				126,165
Mattituck-Cutchogue NY Central School District Unlimited Tax (Par Call July 15, 2025 @100) 5.0% Unlimited tax due July 15, 2026			280,000				331,798				338,548				280,000				338,515				350,029
Mattituck-Cutchogue NY (Par Call July 15, 2025 @100) 5.0% Unlimited tax due July 15, 2027			365,000				429,430				436,894				365,000				437,784				450,848
Putnam County NY Limited Tax (Par Call January 15, 2026 @100) 5.0% due January 15, 2027			135,000				161,123				164,886				135,000				164,302				170,413
Halfmoon NY Pub Imp Limited Tax (Par Call June 15, 2025 @100) 5.0% due June 15, 2027			280,000				329,330				336,518				280,000				335,804				347,675
Gates Chili NY Central School Unlimited Tax (Par Call June 15, 2025 @100) 5.0% due June 15, 2027			200,000				237,805				242,250				200,000				242,760				248,520

 

 

		2017												2016
		Principal Amount				Amortized Cost				Fair Value				Principal Amount				Amortized Cost				Fair Value
Revenue Backed (continued)
Western Nassau Cty Water Auth (Par Call April 1, 2025 @100) 5.0% due April 1, 2028			100,000				113,633				118,455				100,000				115,470				120,425
N.Y.S. Thruway Authority St Pers Income Tax Rev Transn 5.25% due March 15, 2019			750,000				758,883				791,648				750,000				765,354				824,678
			17,550,000				19,540,728				20,025,283				14,085,000				15,571,926				16,306,625
Pre-refunded
Starpoint NY Central School District Ref Unlimited Tax 5.0% due June 15, 2020			250,000				267,996				274,763				250,000				274,838				284,367
			250,000				267,996				274,763				250,000				274,838				284,367
General Obligations
Wantagh New York UN Free School 5.00% due September 1, 2021			550,000				601,496				627,121				550,000				614,902				649,358
Central Islip New York Union Free School School District Ref Unlimited Tax 5.00% due July 15, 2022			750,000				849,187				871,342				750,000				870,126				901,763
Hilton New York Central School District Unlimited Tax 4.0% due June 15, 2019			500,000				520,558				522,960				500,000				533,212				535,795
Rockville Center NY Limited Tax 4.0% due June 15, 2022			200,000				222,288				223,980				200,000				221,987				230,924
Brentwood New York UN Free School 5.00% due January 15, 2023			430,000				463,198				505,181				430,000				469,998				523,306
Connetquot New York Central School District Unlimited Tax 5.0% due January 15, 2024			400,000				433,109				477,784				400,000				438,437				495,140
Syosset New York Central School District Unlimited Tax 5.0% due December 15, 2022			735,000				797,004				847,394				735,000				807,748				877,422
Syosset New York Central School District Unlimited Tax 5.0% due December 15, 2022			125,000				136,355				146,532				125,000				138,941				151,829
Onondaga County NY Ref Unlimited Tax (Par Call March 15, 2024 @100) 5.0% due March 15, 2025			285,000				322,001				344,605				285,000				327,802				354,095
North Babylon NY Un Free School Dist Ref Unlimited Tax (Par Call August 1, 2022 @100) 5.0% due August 1, 2023			250,000				277,458				288,768				250,000				283,232				298,903
Battery Park City NY Authority SR-Ser A (Par Call November 1, 2023 @100) 5.0% due November 1, 2029			140,000				151,521				165,972				140,000				153,746				169,733
Buffalo & Ft. Erie NY Pub Bridge Auth Toll Bridge Sys Rev 5.0% due January 1, 2025			410,000				465,443				496,883				410,000				473,140				505,715

 

 

		2017												2016
		Principal Amount				Amortized Cost				Fair Value				Principal Amount				Amortized Cost				Fair Value
General Obligations (continued)
Bayport Blue Point NY Un Free School Dist Ref Unlimited Tax 5.0% due September 15, 2024			250,000				290,032				303,842				250,000				295,849				314,997
Saratoga Springs NY Ref Public Imports-Unlimited Tax (Par Call February 15, 2023 @100) 5.0% due February 15, 2025			225,000				255,850				263,005				225,000				260,662				270,665
Build NYC Resource Corp.NY Rev United Jewish Appeal (Par Call July 1, 2024 @100) 5.0% due July 1, 2025			320,000				367,949				381,587				320,000				374,559				392,765
Tompkins County NY Public Impt Ser B Limited Tax (Par Call December 15, 2024 @100) 5.0% due December 15, 2027			500,000				585,299				599,065				500,000				597,260				619,670
Util Debt Securitization Auth NY Restructuring Ser TE (Par Call December 15, 2023 @100) 5.0% due December 15, 2028			500,000				535,174				596,145				500,000				541,224				610,770
Clarkstown Central School District NY Unlimited Tax 4.0% due May 15, 2019			500,000				519,544				522,180				500,000				531,760				538,135
Rhinebeck New York Central School District Unlimited Tax (Par Call June 15, 2023 @100) 4.0% due June 15, 2025			535,000				571,421				587,580				535,000				577,887				603,527
Queensbury New York Union Free School 4.00% due December 15, 2018			225,000				229,690				232,287				225,000				233,855				238,763
Riverhead NY Limited Tax 4.0% due June 1, 2021			1,005,000				1,059,991				1,099,621				1,005,000				1,075,312				1,130,594
Bethlehem, NY Central School District Unlimited Tax 4.00% due January 15, 2021			500,000				525,599				542,535				500,000				533,564				556,925
Plainview Old Bethpage New York Central School District Ref Unlimited Tax 5.00% due December 15, 2020			250,000				261,577				280,963				250,000				265,278				292,048
			9,585,000				10,441,744				10,927,332				9,585,000				10,620,481				11,262,842
Short-term
Village of Briarcliff Manor New York Pub Impt Unlimited Tax 5.0% due September 1, 2017			-				-				-				215,000				216,360				222,592
N.Y.S. Dormitory Authority Revs Non St Supported Debt Sch Dist Fing Prog (Par Call October 1, 2017 @100) 5.0% due October 1, 2018			-				-				-				430,000				433,436				446,783
N.Y.S. Dormitory Authority Revs Non St Supported Debt Sch Dist Fing Prog (Par Call October 1, 2017 @100) 5.0% due October 1, 2019			-				-				-				585,000				589,215				607,833

 

 

		2017												2016
		Principal Amount				Amortized Cost				Fair Value				Principal Amount				Amortized Cost				Fair Value
Short-term (continued)
N.Y.S. Local Govt Assistance Corp Ref:
5.5% due April 1, 2017			-				-				-				115,000				114,858				117,125
5.5% due April 1, 2017			-				-				-				340,000				352,077				346,283
N.Y.S. Urban Development Corp Rev Ref Svc Contract 5.00% due January 1, 2017			-				-				-				225,000				225,719				226,645
Triborough Bridge & Tunnel Authority NY General Purpose Revs (Escrowed to Maturity) 5.5% due January 1, 2017			-				-				-				105,000				105,153				105,839
State of NY Dormitory Auth State Pers. Inc. Tax (Par Call March 15, 2018 @100) 5.00 % due March 15, 2022			-				-				-				750,000				756,604				792,743
N.Y.S. Dormitory Authority Revs Non St Supported Debt Insd Sien College (Par Call July 1, 2016 @100) 5.0% due July 1, 2020			-				-				-				1,000,000				1,007,539				1,003,690
Build NYC Resource Corp NY Rev 5.00% due August 01, 2018			135,000				141,210				138,996				-				-				-
Starpoint NY Central School District Ref Unlimited Tax 5.0% due June 15, 2018			550,000				565,122				563,888				850,000				895,268				906,483
N.Y.S. Dormitory Authority Revs 5.5% due May 15, 2018			1,155,000				1,162,357				1,182,651				1,155,000				1,176,197				1,236,254
			1,840,000				1,868,689				1,885,535				5,770,000				5,872,426				6,012,270
			32,525,000				35,533,125				36,814,878				32,990,000				35,792,599				37,702,132

 

 

 

 

 

 

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1.	Significant Accounting Policies

The following is a summary of the significant accounting policies followed by Tridan Corp. (the "Company"), a closed‑end, non‑diversified management investment company, registered under the Investment Company Act of 1940.

Basis of Presentation

The accompanying financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). The Company is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification 946, Financial Services - Investment Companies.

Acquisition and Valuation of Investments

Investment transactions are accounted for on the date the securities are purchased/sold (trade date) and interest on securities acquired/sold is included in income from/to the settlement date.  Short-term investments are stated at cost, which is equivalent to fair value.

Fair values for the Company's investments in municipal obligations have been determined based on the bid price of the obligation.  Securities for which quotations are not readily available are valued at fair value as determined by the board of directors.  There were no securities valued by the board of directors, for which quotations were not readily available, as of October 31, 2017 and 2016.

Amortization of Bond Premium or Discount

In determining investment income, bond premiums or discounts are amortized over the remaining term of the obligation.

Income Taxes

It is the Company's policy to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. The Company also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains.  Therefore, no income tax provision would be required.

The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities.  Management has analyzed the Company’s tax positions and has concluded that no liability for unrecognized tax benefits should be recorded.  The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

 

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The Company identifies its major tax jurisdictions as U.S. Federal, New York State and New York City where the Company makes significant investments.  Generally, the Company’s tax returns are subject to examination by Federal, state and local authorities for a period of three years from the later of the due date of such returns or the actual date the returns were filed.

Interest income from municipal investments is exempt from Federal and state income taxes.

Distributions to Shareholders

Dividends to shareholders from net investment income, if any, are paid quarterly.  Distributions of capital gains, if any, are made at least annually, and as required to comply with Federal excise tax requirements. Dividends to shareholders are determined in accordance with tax regulations and are recorded on the ex-dividend date.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of 90 days or less to be cash equivalents.

Use of Estimates

The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period.  Actual results could differ from those estimates. Significant estimates are used in determining the fair value of investments.

Concentration of Credit Risk

The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and investments.  The Company maintains all of its cash on deposit in one financial institution.  At October 31, 2017, there were no cash and cash equivalents held in excess of federally insured limits. At October 31, 2016 the amount of cash and cash equivalents held in excess of federally insured limits was approximately $71,000. The value of the Company's investments may be subject to possible risks involving, among other things, the continued creditworthiness of the various state and local government agencies and public financing authorities underlying its investments.

 

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Fair value of Financial Instruments

The carrying amounts for accrued interest receivables and accrued liabilities reflected in the financial statements approximate fair value because of the short maturities of these items.  The Company accounts for its investments in municipal obligations in accordance with the accounting guidance for investment companies (FASB ASC 946).  See Note 1 “Acquisition and Valuation of Investments” for a description of the valuation methodology which is unchanged as of October 31, 2017 and 2016.  FASB ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value and expands disclosures about the use of fair value measurements.  The valuation techniques required by FASB ASC 820 are based upon observable and unobservable inputs.  Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions.

The levels of the fair value hierarchy are as follows:

Level 1 –

Unadjusted quoted prices in active markets for identical assets or liabilities that a company has the ability to access.

Level 2 –

Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly.  These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risks, yield curves, default rates, and similar data.

Level 3 –

Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing a company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

The Company’s investments in municipal obligations are all considered  Level 2 instruments.

The following table presents the Company’s financial assets that are measured at fair value as of October 31, 2017 and 2016:

 

 

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The Company utilizes quoted market prices for it securities owned, when available.  Instruments classified as Level 2 are valued using industry-standard models or other valuation methodologies calibrated to observable market inputs.  These models consider various assumptions regarding the security or securities with similar characteristics, such as trade data, bid price or spread, two sided markets, quotes, benchmark curves, and market data feeds, as well as other measurements.

2.	Cash and Cash Equivalents

Cash and cash equivalents consist of the following:

 

3.	Accrued Liabilities

Accrued liabilities consist of the following at:

(a)

The Company utilizes the services of J.P. Morgan Investment Management, Inc. as its investment advisor and J.P. Morgan Chase Bank N.A. as its custodian for its investment-s.  The annual advisory fee is .28 of one percent and the custody fee is .02 of one percent of the net assets under management.  The fee is computed and payable quarterly, based on the aggregate fair value of the net assets on the last day of each fiscal quarter.

(b)

For the six months ending October 31, 2017 and 2016, the Company incurred legal fees of approximately $44,000 and $45,000, respectively, for professional fees paid to the law firm of which an officer of the Company is a member.

(c)

For the six months ending October 31, 2017 and 2016, the Company incurred audit fees of approximately $25,000 and $24,000, respectively.

 

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4.	Investment Transactions

Purchases and sales of investments in municipal obligations (excluding short-term and demand investments) amounted to approximately $1,584,000 and $2,065,000, respectively, for the six months ended October 31, 2017, and $3,676,000 and $-0-, respectively, for the six months ended October 31, 2016.

The U.S. Federal income tax basis (aggregate cost) of the Company’s investments, at October 31, 2017 and 2016, was approximately $35,533,000 and $35,793,000, respectively, and net unrealized appreciation, at October 31, 2017 and 2016, for U.S. Federal income tax purposes was approximately $1,282,000 and $1,909,000, respectively (gross unrealized appreciation of approximately $1,372,000 and $1,955,000, respectively; gross unrealized depreciation of approximately $90,000 and $46,000, respectively).

5.	Common Stock, Share Redemption Plan and Net Asset Values

At October 31, 2017 and 2016, there were 6,000,000 shares of $0.02 par value common stock authorized of which 3,199,100 had been issued aggregating $63,982.

The Company has a share redemption plan applicable to 25,287 shares and 26,192 shares, respectively, of outstanding common stock, at October 31, 2017 and 2016.  The plan permits eligible shareholders or their estates to have their shares redeemed upon reaching age 65 or upon death.  Shares are redeemed at the net asset value per share, as of the end of the Company's fiscal quarter in which the request for redemption is received.  At October 31, 2017 and 2016, 111,029.6743 shares ($1,320,425) and 110,125.4313 shares ($1,309,305), respectively, have been redeemed under this plan.

The net asset value per share is calculated by dividing the aggregate fair value of all assets less the aggregate fair value of all liabilities by the number of common shares outstanding at the end of the period.

The net asset values per share and the shares outstanding are as follows:

 

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6.	Distributions

During the six months ended October 31, 2017, 2016, distributions of $367,122 ($.12 per share), $370,913 ($.12 per share), respectively were declared and paid to shareholders, Distributions for the year ended April 30, 2017 amounted to $676,878 ($.22 per share). Substantially all of the distributions were exempt from Federal income taxes except for $16,709 of capital gain distributions during the six months ended October 31, 2017.

The tax character of distributions paid during the six months ending October 31, 2017, and 2016 and for the year ending April 30, 2017 is as follows:

As of October 31, 2017, 2016 and April 30, 2017, the components of distributable earnings on a tax basis were as follows:

 

Capital loss carryforwards as of October 31, 2017 and 2016 were $0 and $10,267, respectively. The Company had no capital reclassification related to permanent book/tax differences for the six months ending October 31, 2017, 2016 and for the year ended April 30, 2017.  There were no significant differences between total GAAP basis net investment income and net realized gain, and actual distributions for the six months ended October 31, 2017 and 2016 and for the year ended April 30, 2017.

 

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7.	Financial Highlights

Selected per share data and ratios are as follows:

 

		For the Six Months Ended October 31,
		2017				2016				2015				2014				2013
Per share operating performance:
(For a share of common stock outstanding throughout the year):
Net asset value, beginning of year		$	12.28			$	12.60			$	12.52			$	12.56			$	12.88
Income from investment operations:
Net investment income			.10				.11				.12				.13				.13
Net realized and unrealized gain (loss) on investments			(.02	)			(.15	)			(.02	)			.04				(.32	)
Total from investment operations			.08				(.04	)			.10				.17				(.19	)
Less distributions:
Dividends (from net investment income)			(.12	)			(.12	)			(.19	)			(.19	)			(.18	)
Capital gains			(.00	)			(.00	)			(.00	)			(.01	)			(.01	)
Total distributions			(.12	)			(.12	)			(.19	)			(.19	)			(.19	)
Net asset value - end of year		$	12.24			$	12.44			$	12.43			$	12.53			$	12.50
Per share value - end of year		$	12.24			$	12.44			$	12.43			$	12.53			$	12.50
*Total investment return			(0.06	)%			(0.04	)%			(0.02	)%			(0.80	)%			(1.94	)%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)		$	37,429			$	38,051			$	38,451			$	38,769			$	38,685
Ratio of expenses to average net assets			1.09	%			1.11	%			1.09	%			1.09	%			1.09	%
Ratio of net investment income to average net assets			1.63	%			1.75	%			2.01	%			2.07	%			2.06	%
Portfolio turnover rate			5.55	%			7.05	%			1.68	%			5.76	%			5.12	%
Average (simple) number of shares outstanding (in thousands)			3,059				3,060				3,092				3,094				3,095