Over the years, we have received inquiries as to how we determine our NAV, more specifically, how we attribute value across our investment portfolio. Before I discuss our financial results for the quarter, I’d like to briefly make a very high note of how we value our portfolio, which comprises the most significant portion of our NAV SuRo Capital applies fair value accounting in accordance with US Generally Accepted Accounting Principles or GAAP and the AICPA’s audit and accounting guide for investment companies with consultation from the AICPA guide with the valuation of portfolio company investments of venture capital and private equity funds and other investment companies. We value our assets on a quarterly basis or more frequently if required.
Fair value is defined as the price that would be received to sell an asset or paid to transfer liability and an orderly transaction between market participants at a date. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the input evaluation technique used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety.
In summary, on the hierarchy. Level 1 valuations are based on unadjusted quoted prices for identical assets in an active market or generally publicly traded investors. Level 2 valuations are based on observable inputs other than Level 1 prices, such as quoted prices in markets that are not active or secondary trade. Level 3 valuations are based on unobservable inputs and reflect the best estimate of what market participants would use in pricing an asset at measurement date. While many of our portfolio investments are deemed to have fair values determined by Level 3 unobservable inputs, in some instances, a secondary transaction will occur. Further guidelines discussed when a secondary transaction occurs in one of our portfolio companies, we closely review the size of the transaction, the share class and any other pertinent information regarding the transaction to a better value.
Unless a rare exception is noted, these secondary transactions are classified as Level 2 valuation inputs and are deemed to be a more appropriate indication of fair value than a Level 3 fair value analysis. We are pleased to report we ended the quarter — the third quarter of 2023 with an NAV per share of $8.41, which is consistent with our financial reporting. The increases in NAV per share from $7.35 per share at the end of Q2 2023 to $8.41 per share as of September 30 was primarily driven by a $1.16 per share increase resulting from net unrealized depreciation of investments during the quarter, largely due to observed secondary trades in our portfolio companies. Also contributing to increase was a $0.04 per share increase due to net repurchase of common stock and a $0.03 per share increase due to stock-based compensation.
As we previously noted, the use of cash in connection with the repurchases, decrease net asset value as of quarter end. However, the reduction of shares outstanding at the quarter end resulted in an increase in the net asset value per share. The increase in NAV per share was partially offset by $0.11 per share decrease due to net investment loss and a $0.06 per share decrease due to net realized losses on investments during the quarter. Finally, I would like to take a moment to review SuRo Capital’s liquidity position as of September 30. We ended the quarter with approximately $105.4 million of liquid assets, including $73.5 million in cash, $20.3 million in short-term US treasuries and approximately $11.6 million in unrestricted public securities.
The approximately $11.6 million of unrestricted public securities held as of quarter end, representing our shares in next door, New Lake Capital Partners, Forge Global, Skillsoft and our Public Square warrants. At September 30, 2023, there were 25,209,108 shares of the company’s common stock canning. That concludes my comments. We would like to thank you for your interest and support of SuRo Capital. Now, I will turn the call over to the operator to start the Q&A session. Operator?
Operator:
Mark Klein: Thank you, everybody, for participating on our call. We greatly appreciate your support. If you have any further follow-up questions, feel free to reach out to us either through our IR portal or just directly through e-mail. Thank you very much.
Operator: That concludes today’s event. Thank you for your participation. You may now disconnect.
