Perritt Funds, Inc. | ||||||
Notes to the Schedule of Investments (Unaudited) | January 31, 2022 | |||||
1. Security Valuation | ||||||
Exchange-listed securities are generally valued at the last sales price reported by the principal security exchange on which the issue is traded, or if no sale | ||||||
is reported, the mean between the latest bid and ask price unless the Funds' investment advisor believes that the mean does not represent a fair value, in | ||||||
which case the securities are valued as set forth below. Securities listed on NASDAQ are valued at the NASDAQ Official Closing Price. Demand notes, | ||||||
commercial paper, U.S. Treasury Bills and warrants are stated at fair value using market prices if available, or a pricing service when such prices are | ||||||
believed to reflect fair value. Securities for which market quotations are not readily available are valued at their fair value as determined in good faith by | ||||||
the Funds' advisor under procedures established by and under the supervision of the Board of Directors of the Fund. The Funds' fair value procedures allow | ||||||
for the use of certain methods performed by the Funds' advisor to value those securities for which market quotations are not readily available, at a price | ||||||
that a Fund might reasonably expect to receive upon a sale of such securities. For example, these methods may be based on a multiple of earnings, or a discount | ||||||
from market of a similarly freely traded security, or a yield to maturity with respect to debt issues, or a combination of these and other methods. | ||||||
The Funds' may invest in warrants or rights (other than those acquired in units or attached to other securities), which entitle the purchaser to buy | ||||||
equity securities at a specific price for a specific period of time. Warrants and rights have no voting rights, receive no dividends and have no rights with | ||||||
respect to the assets of the issuer. | ||||||
General Accepted Accounting Principles ("GAAP") establishes an authoritative definition of fair value and sets out a hierarchy for measuring fair value. | ||||||
GAAP also requires additional disclosures about the various inputs used to develop the measurements of fair value. These inputs are summarized in the | ||||||
three broad levels listed below: | ||||||
• Level 1 - Quoted prices in active markets for identical securities | ||||||
• Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) | ||||||
• Level 3 - Significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments). | ||||||
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The | ||||||
following is a summary of the inputs used to value the Funds' securities as of January 31, 2022: |
Perritt MicroCap Opportunities Fund | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Communication Services | $ | 1,852,170 | $ | - | $ | - | $ | 1,852,170 | ||||||||
Consumer Discretionary | 8,767,267 | 189,000 | - | 8,956,267 | ||||||||||||
Consumer Staples | 420,837 | - | - | 420,837 | ||||||||||||
Energy | 1,551,802 | - | - | 1,551,802 | ||||||||||||
Financials | 9,886,492 | - | - | 9,886,492 | ||||||||||||
Health Care | 4,291,475 | - | - | 4,291,475 | ||||||||||||
Industrials | 20,203,472 | - | - | 20,203,472 | ||||||||||||
Information Technology | 10,949,657 | - | - | 10,949,657 | ||||||||||||
Materials | 5,185,582 | - | - | 5,185,582 | ||||||||||||
Utilities | 641,000 | - | - | 641,000 | ||||||||||||
Total Common Stocks | 63,749,754 | 189,000 | - | 63,938,754 | ||||||||||||
Warrants | ||||||||||||||||
Health Care | - | 0 | - | 0 | ||||||||||||
Materials | 13,500 | - | - | 13,500 | ||||||||||||
Total Warrants | 13,500 | - | - | 13,500 | ||||||||||||
Short Term Investments | 660,853 | - | - | 660,853 | ||||||||||||
Total Investments in Securities | $ | 64,410,607 | $ | 189,000 | $ | - | $ | 64,599,607 | ||||||||
Perritt Ultra MicroCap Fund | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Communication Services | $ | 770,822 | $ | - | $ | - | $ | 770,822 | ||||||||
Consumer Discretionary | 1,171,850 | 126,000 | - | 1,297,850 | ||||||||||||
Consumer Staples | 271,640 | - | - | 271,640 | ||||||||||||
Energy | 272,761 | - | - | 272,761 | ||||||||||||
Financials | 1,406,437 | - | - | 1,406,437 | ||||||||||||
Health Care | 2,288,444 | - | - | 2,288,444 | ||||||||||||
Industrials | 3,750,615 | - | - | 3,750,615 | ||||||||||||
Information Technology | 4,715,589 | - | - | 4,715,589 | ||||||||||||
Materials | 959,482 | - | - | 959,482 | ||||||||||||
Real Estate Investment Trusts | 462,650 | - | - | 462,650 | ||||||||||||
Utilities | 307,200 | - | - | 307,200 | ||||||||||||
Total Common Stocks | 16,377,490 | 126,000 | - | 16,503,490 | ||||||||||||
Warrants | ||||||||||||||||
Health Care | - | 0 | - | 0 | ||||||||||||
Materials | 227,330 | - | - | 227,330 | ||||||||||||
Total Warrants | 227,330 | - | - | 227,330 | ||||||||||||
Short Term Investments | 148,647 | - | - | 148,647 | ||||||||||||
Total Investments in Securities | $ | 16,753,467 | $ | 126,000 | $ | - | $ | 16,879,467 |
Please refer to the Schedule of Investments for additional information regarding the composition of the amounts listed above. | ||
During the period ended January 31, 2022, the MicroCap Fund and the Ultra MicroCap Fund did not hold any Level 3 securities. |