Stellus Capital Investment Corporation Reports Results for its Second Fiscal Quarter Ended June 30, 2026

Stellus Capital Investment Corporation Reports Results for its Second Fiscal Quarter Ended June 30, 2026

PR Newswire

HOUSTON, Aug. 10, 2026

HOUSTON, Aug. 10, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended June 30, 2026.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended June 30, 2026, in which we earned both U.S. GAAP net investment income and core net investment income of $0.26 per share and net realized income of $0.01 per share. During the quarter, we funded $18 million of investments and received $49 million of repayments, resulting in a total portfolio of $968 million at fair value. I'm also pleased to report that since we announced our Share Repurchase Program in March, we have repurchased 467,317 shares at an average price of $8.50 per share."FINANCIAL HIGHLIGHTS($ in millions, except data relating to per share amounts and shares outstanding)Three Months EndedSix Months EndedJune 30, 2026June 30, 2025June 30, 2026June 30, 2025AmountPer ShareAmountPer ShareAmountPer ShareAmountPer ShareNet investment income$7.53$0.26$9.56$0.34$15.03$0.52$19.35$0.69Core net investment income(1)7.560.269.990.3515.420.5320.280.72Net realized loss on investments(7.24)(0.25)(0.86)(0.03)(6.49)(0.22)(6.83)(0.24)Net realized loss on foreign currency translation——(0.02)———(0.05)—Total realized income(2)$0.29$0.01$8.68$0.31$8.54$0.30$12.47$0.45Distributions(9.80)(0.34)(11.36)(0.40)(19.64)(0.68)(22.45)(0.80)Net unrealized change in appreciation on investments15.900.551.440.059.350.322.630.09Net unrealized change in appreciation (depreciation) on foreign currency translation0.02—0.03—(0.03)—0.04—Net increase in net assets resulting from operations$16.21$0.56$10.15$0.36$17.86$0.62$15.14$0.54Weighted average shares outstanding28,869,02828,412,84928,907,92528,009,969(1)Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.(2)Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures.PORTFOLIO ACTIVITY($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)As ofAs ofJune 30, 2026December 31, 2025Investments at fair value$968.2$1,007.6Total assets$982.1$1,041.3Net assets$367.0$371.2Shares outstanding28,672,91128,947,254Net asset value per share$12.80$12.82Three Months EndedSix Months EndedJune 30, 2026June 30, 2025June 30, 2026June 30, 2025New investments$18.0$22.8$45.7$78.2Repayments of investments(49.2)(31.6)(90.9)(46.6)Net activity($31.2)($8.8)($45.2)$31.6As ofAs ofJune 30, 2026December 31, 2025Number of portfolio company investments116115Number of debt investments98100Weighted average yield of debt and other income producing investments (3)Cash7.9 %8.5 %Payment-in-kind ("PIK")0.8 %0.5 %Fee amortization0.3 %0.3 %Total9.0 %9.3 %Weighted average yield of total investments(4)Cash7.4 %7.9 %PIK0.7 %0.5 %Fee amortization0.3 %0.3 %Total8.4 %8.7 %(3)The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors.(4)The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status.Results of OperationsInvestment income for the three months ended June 30, 2026 and 2025 totaled $22.3 million and $25.7 million, respectively, most of which was interest income from portfolio investments.Gross operating expenses for the three months ended June 30, 2026 and 2025 totaled $14.8 million and $17.1 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $4.3 million, income incentive fees totaled $0.2 million and $2.2 million, fees and expenses related to our borrowings totaled $8.5 million and $8.7 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.5 million, income tax totaled $0.0 million and $0.4 million and other expenses totaled $1.1 million and $1.0 million. The Company waived $0.0 million and $1.0 million of income incentive fees due to the total return limitation pursuant to the provisions of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended June 30, 2026 and 2025, respectively, for net operating expenses of $14.8 million and $16.1 million, respectively.Net investment income was $7.5 million and $9.6 million, or $0.26 and $0.34 per common share based on 28,869,028 and 28,412,849 weighted average common shares outstanding for the three months ended June 30, 2026 and 2025, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended June 30, 2026 and 2025 was $7.6 million and $10.0 million, or $0.26 and $0.35 per share, respectively.For the three months ended June 30, 2026 and 2025, the Company's investment portfolio had a net change in unrealized appreciation of $15.9 million and $1.4 million, respectively, and the Company had net realized losses of ($7.2) million and ($0.9) million, respectively.Net increase in net assets resulting from operations totaled $16.2 million and $10.1 million, or $0.56 and $0.36 per common share, based on 28,869,028 and 28,412,849 weighted average common shares outstanding for the three months ended June 30, 2026 and 2025, respectively.Liquidity and Capital ResourcesAs of June 30, 2026, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $335.0 million on a committed basis. As of both June 30, 2026 and December 31, 2025, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million.As of June 30, 2026 and December 31, 2025, the Company had $222.2 million and $236.6 million in outstanding borrowings under the Credit Facility, respectively.On March 3, 2026, the Company announced that its Board authorized a program for the purpose of repurchasing up to $20,0 million of its shares of common stock (the "Repurchase Program"). Under the Repurchase Program, the Company may, but is not obligated to, repurchase its outstanding common stock in the open market from time to time, provided that the Company complies with the requirements under its Code of Ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market volume and timing constraints. Unless amended or extended by the Board, the Repurchase Program will expire on the earlier of March 2, 2027 or when $20.0 million of the Company's outstanding shares of common stock have been repurchased.During the three months ended June 30, 2026, the Company repurchased 274,343 shares of its common stock under the Repurchase Program for an aggregate purchase price of $2,447,682, including commissions, at a weighted average net repurchase price of $8.92 per share.DistributionsFor the three months ended June 30, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.40 per share, respectively ($9.8 million and $11.4 million in the aggregate, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.Recent Portfolio ActivityThe Company invested in the following portfolio companies during the three months ended June 30, 2026:Activity TypeDateCompany NameCompany DescriptionInvestment Amount Instrument TypeAdd-On InvestmentApril 1, 2026EH Real Estate Services, LLC*Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyersand sellers$190,093Senior Secured – First LienNew InvestmentApril 3, 2026VeloSource Purchaser, LLCLocum tenens staffing agency$200,000Senior Secured – First Lien$100,000Delayed Draw Term Loan Commitment$100,000Revolver Commitment$18,605EquityAdd-On InvestmentApril 13, 2026Venbrook Buyer, LLC*An independent insurance services broker$1,256,415Senior Secured – First LienNew InvestmentApril 13, 2026Solomon AcquisitionCo, LLCAn innovative process automation and digital systems integrator$4,196,557Senior Secured – First Lien$100,000Revolver Commitment$186,807EquityNew InvestmentApril 27, 2026OW RSG LLCManufacturer of walk-in coolers, freezers, and refrigeration systems$4,000,000Senior Secured – First Lien$100,000Delayed Draw Term Loan Commitment$100,000Revolver Commitment$324,074EquityAdd-On InvestmentApril 28, 2026Venbrook Buyer, LLC*An independent insurance services broker$502,566Senior Secured – First LienAdd-On InvestmentApril 28, 2026Advanced Barrier Extrusions, LLC*Manufacturer of flexible packaging$330,250Senior Secured – First LienAdd-On InvestmentJune 1, 2026Venbrook Buyer, LLC*An independent insurance services broker$736,152Senior Secured – First LienAdd-On InvestmentJune 26, 2026Venbrook Buyer, LLC*An independent insurance services broker$352,052Senior Secured – First LienAdd-On InvestmentJune 29, 2026Monarch Behavioral Therapy, LLC*Provider of center-based applied behavioral analysis therapy services$29,822Convertible Promissory NoteAdd-On InvestmentJune 30, 2026Valor Buyco LLC*Provider of dispatched road services$120,000Delayed Draw Term Loan Commitment*Existing portfolio companyThe Company realized investments in the following portfolio companies during the three months ended June 30, 2026:Activity TypeDateCompany NameCompany DescriptionProceeds ReceivedRealized Gain Instrument TypeFull RepaymentApril 17, 2026Sales Benchmark Index, LLCProvider of revenue growth management consulting services for private equity-owned and large enterprise clients$11,968,656$—Senior Secured – First Lien$443,820$—Revolver CommitmentFull Realization$486,925$(178,805)EquityFull RepaymentApril 24, 2026Equine Network, LLCProvider of equine competitions, content, products, and services$9,043,164$—Senior Secured – First Lien$97,900$—Delayed Draw Term Loan Commitment$166,667$—Revolver CommitmentFull RepaymentApril 30, 2026Cerebro Buyer, LLCManufacturer of single-use electrodes for medical procedures$4,526,683$—Senior Secured – First Lien$376,902$—Delayed Draw Term Loan CommitmentFull RepaymentMay 21, 2026Premiere Digital Services, Inc.Provider of digital media services to the entertainment industry.$12,038,926$—Senior Secured – First LienFull RepaymentJune 30, 2026Tilley CompanyDistributor of specialty chemicals, oils, and lubricants into the food & beverage, lubricants, flavor and fragrances, personal care, and other chemicals end-markets$44,110$—Senior Secured – First Lien$13,043$—Revolver CommitmentEvents Subsequent to June 30, 2026The Company's management has evaluated subsequent events through August 10, 2026. There have been no subsequent events that require recognition or disclosure except for the following described below.Investment PortfolioThe Company invested in the following portfolio companies subsequent to June 30, 2026:Activity TypeDateCompany NameCompany DescriptionInvestment Amount Instrument TypeAdd-On InvestmentJuly 2, 2026Blade Landscape Investments, LLC*Regional provider of commercial landscaping services$5,250EquityNew InvestmentJuly 16, 2026Emergent SoftwareMicrosoft-centric data, AI, and cloud IT services partner$3,197,377Senior Secured – First Lien$2,664,481Delayed Draw Term Loan Commitment$500,000Revolver Commitment$306,732EquityNew InvestmentAugust 5, 2026LJ Welding Automation Ltd.Manufacturer of material handlingand welding automation systems$7,693,688Senior Secured – First Lien$500,000Revolver Commitment$303,470Equity*Existing portfolio companyThe Company realized investments in the following portfolio companies subsequent to June 30, 2026:Activity TypeDateCompany NameCompany DescriptionProceeds Received Instrument TypeFull RepaymentJuly 1, 2026General LED OPCO, LLCProvider of LED lighting systems and modules$4,500,000Senior Secured – Second LienFull RepaymentJuly 27, 2026MacKenzie-Childs Acquisition, Inc.Lifestyle home décor brand$86,331Senior Secured – First LienFull RepaymentJuly 30, 2026U.S. Expediters, LLCReseller of CPAP machines and accessories$14,236,513Senior Secured – First LienCredit Facility The outstanding balance under the Credit Facility as of August 10, 2026 was $211.7 million.SBA LicensingOn July 14, 2026, we received a license from the SBA for the SBIC III subsidiary, which allows us to contribute $125.0 million of equity and draw up to $250.0 million of SBA-guaranteed debentures, subject to the increased family of funds limit of $475.0 million across all of our SBIC subsidiaries and applicable SBA regulations and policies.Distributions DeclaredOn July 16, 2026, the Board of Directors of the Company declared a regular monthly dividend for each of July 2026, August 2026, and September 2026 as follows:RecordPaymentAmount perDeclaredDateDateShareJuly 16, 2026July 31, 2026August 14, 2026$0.0833July 16, 2026August 31, 2026September 15, 2026$0.0833July 16, 2026September 30, 2026October 15, 2026$0.0833Share Repurchase ProgramSince June 30, 2026, we repurchased 192,974 shares of our common stock under the Repurchase Program at a weighted-average purchase price of $7.95 per share.Conference Call InformationStellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, August 11, 2026 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 218557. Starting approximately two hours after the conclusion of the call, a replay will be available through Tuesday, August 25, 2026 by dialing (877) 481-4010 and entering passcode 54324. The replay will also be available on the Company's website.For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.About Stellus Capital Investment CorporationThe Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab. Stellus Capital Management, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC's parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.'s periodic filings with the U.S. Securities and Exchange Commission for additional information.Forward-Looking StatementsStatements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.ContactsStellus Capital Investment CorporationW. Todd Huskinson, Chief Financial Officer(713) 292-5414thuskinson@stelluscapital.comSTELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES(unaudited)June 30, 2026December 31, 2025ASSETSControlled investments, at fair value (amortized cost of $34,691,986 and $33,603,521, respectively)$11,573,435$14,953,132Non-controlled, affiliated investments, at fair value (amortized cost of $29,323,333 and $4,806,660, respectively)32,257,6583,750,674Non-controlled, non-affiliated investments, at fair value (amortized cost of $913,612,730 and $987,729,505, respectively)924,415,324988,919,589Cash and cash equivalents5,138,95025,050,156Receivable for sales and repayments of investments2,166,620581,509Interest receivable5,973,5396,375,996Income tax receivable—1,385,387Other receivables66,43085,000Related party receivable—20Deferred offering costs75,000—Prepaid expenses457,821150,843Total Assets$982,124,777$1,041,252,306LIABILITIES2030 Notes Payable$122,897,963$122,671,409Credit Facility payable219,221,522233,167,360SBA-guaranteed debentures257,304,593295,984,063Dividends payable3,248,6413,858,669Management fees payable4,393,7714,442,705Income incentive fees payable889,9862,317,429Interest payable5,569,9226,138,076Unearned revenue496,577582,007Administrative services payable517,253539,338Income tax payable56,518—Other accrued expenses and liabilities570,085372,294Total Liabilities$615,166,831$670,073,350Commitments and contingencies (Note 7)Net Assets$366,957,946$371,178,956NET ASSETSCommon stock, par value $0.001 per share (100,000,000 shares authorized; 28,672,911 and 28,947,254 shares issued and outstanding, respectively)$28,673$28,947Paid-in capital395,382,385397,829,793Total distributable loss(28,453,112)(26,679,784)Net Assets$366,957,946$371,178,956Total Liabilities and Net Assets$982,124,777$1,041,252,306Net Asset Value Per Share$12.80$12.82STELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)For the three months endedFor the six months endedJune 30, 2026June 30, 2025June 30, 2026June 30, 2025INVESTMENT INCOMEFrom non-controlled, affiliated investmentsInterest income$1,016$—$1,061$—Payment-in-kind interest income559,310—631,610—From non-controlled, non-affiliated investmentsInterest income19,864,06023,134,80039,811,02546,285,437Payment-in-kind interest income1,159,0381,519,4053,392,7352,495,884Other income719,4481,042,3971,759,3751,866,939Total Investment Income$22,302,872$25,696,602$45,595,806$50,648,260OPERATING EXPENSESManagement fees$4,393,770$4,279,441$8,786,127$8,334,167Valuation fees44,99538,507211,114196,396Administrative services expenses550,235474,2841,199,355923,582Income incentive fees150,8632,158,075257,5724,294,566Professional fees283,474312,8081,101,201730,839Directors' fees84,25093,250213,500204,500Insurance expense102,05798,668195,113195,758Interest expense and other fees8,585,4678,680,01517,437,00816,943,034Income tax expense29,685428,951390,156928,498Other general and administrative expenses585,510500,302825,127718,653Total Operating Expenses$14,810,306$17,064,301$30,616,273$33,469,993Income incentive fee waiver(38,583)(928,926)(49,644)(2,171,769)Total Operating Expenses, net of fee waivers$14,771,723$16,135,375$30,566,629$31,298,224Net Investment Income$7,531,149$9,561,227$15,029,177$19,350,036Net realized loss on controlled investments$—$(1,132,576)$—$(1,132,576)Net realized (loss) gain on non-controlled, non-affiliated investments(7,243,523)272,549(6,493,113)(5,694,672)Net realized (loss) gain on foreign currency translations(1,811)(20,003)1,853(49,658)Net change in unrealized (depreciation) appreciation on controlled investments(922,785)1,290,491(4,468,162)1,345,767Net change in unrealized appreciation on non-controlled, affiliated investments3,913,525—3,468,901—Net change in unrealized appreciation on non-controlled, non-affiliated investments12,908,698143,17610,350,3531,281,193Net change in unrealized appreciation (depreciation) on foreign currency translations21,04530,546(26,975)38,865Net Increase in Net Assets Resulting from Operations$16,206,298$10,145,410$17,862,034$15,138,955Net Investment Income Per Share—basic and diluted$0.26$0.34$0.52$0.69Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted$0.56$0.36$0.62$0.54Weighted Average Shares of Common Stock Outstanding—basic and diluted28,869,02828,412,84928,907,92528,009,969Distributions Per Share—basic and diluted$0.34$0.40$0.68$0.80STELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)Common StockTotalNumber Par Paid-in distributableof sharesvaluecapital(loss) Net AssetsBalances at December 31, 202427,481,118$27,481$379,549,272$(9,654,813)$369,921,940Net investment income———9,788,8099,788,809Net realized loss on investments———(5,967,221)(5,967,221)Net realized loss on foreign currency translations———(29,655)(29,655)Net change in unrealized appreciation on investments———1,193,2931,193,293Net change in unrealized depreciation on foreign currency translations———8,3198,319Distributions from net investment income———(11,087,389)(11,087,389)Issuance of common stock, net of offering costs(1)656,0856568,937,430—8,938,086Balances at March 31, 202528,137,203$28,137$388,486,702$(15,748,657)$372,766,182Net investment income———9,561,2279,561,227Net realized loss on investments———(860,027)(860,027)Net realized loss on foreign currency translations———(20,003)(20,003)Net change in unrealized appreciation on investments———1,433,6671,433,667Net change in unrealized appreciation on foreign currency translations———30,54630,546Provision for taxes on unrealized appreciation on investments—————Distributions from net investment income———(11,363,618)(11,363,618)Issuance of common stock, net of offering costs(1)278,9452793,822,637—3,822,916Balances at June 30, 202528,416,148$28,416$392,309,339$(16,966,865)$375,370,890Balances at December 31, 202528,947,254$28,947$397,829,793$(26,679,784)$371,178,956Net investment income———7,498,0287,498,028Net realized gain on investments———750,410750,410Net realized gain on foreign currency translation———3,6643,664Net change in unrealized depreciation on investments———(6,548,346)(6,548,346)Net change in unrealized depreciation on foreign currency translations———(48,020)(48,020)Distributions from net investment income———(9,839,171)(9,839,171)Balances at March 31, 202628,947,254$28,947$397,829,793$(34,863,219)$362,995,521Net investment income———7,531,1497,531,149Net realized loss on investments———(7,243,523)(7,243,523)Net realized loss on foreign currency translation———(1,811)(1,811)Net change in unrealized appreciation on investments———15,899,43815,899,438Net change in unrealized appreciation on foreign currency translations———21,04521,045Distributions from net investment income———(9,796,191)(9,796,191)Repurchase of common stock, net of commissions(1)(274,343)(274)(2,447,408)—(2,447,682)Balances at June 30, 202628,672,911$28,673$395,382,385$(28,453,112)$366,957,946STELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)For the six months ended June 30, 2026June 30, 2025Cash Flows from Operating ActivitiesNet increase in net assets resulting from operations$17,862,034$15,138,955Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:Purchases of investments(45,678,450)(78,230,159)Proceeds from sales and repayments of investments90,888,20646,638,287Net change in unrealized appreciation on investments(9,351,092)(2,626,960)Net change in unrealized depreciation (appreciation) on foreign currency translations26,975(38,865)Increase in investments due to payment-in-kind income(3,392,735)(2,492,551)Amortization of premium and accretion of discount, net(1,383,610)(1,437,223)Amortization of loan structure fees511,422634,745Amortization of deferred financing costs270,866303,468Amortization of discount on Notes Payable67,12131,434Amortization of premium on Notes Payable(61,432)—Amortization of loan fees on SBA-guaranteed debentures320,530371,260Net realized loss on investments6,493,1136,827,248Changes in other assets and liabilitiesDecrease (increase) in interest receivable402,457(921,344)Decrease (increase) in income tax receivable1,385,387(743,732)Decrease in other receivables18,57070,495Decrease in related party receivables203,687(Increase) decrease in prepaid expenses (306,978)218,975(Decrease) increase in management fees payable(48,934)245,332Decrease in income incentive fees payable(1,427,443)(1,057,366)(Decrease) increase in administrative services payable(22,085)22,297(Decrease) increase in interest payable(568,154)1,248,079Increase in related party payable—1,088,287(Decrease) increase in unearned revenue(85,430)127,664Increase in income tax payable56,518—Increase in other accrued expenses and liabilities197,7911,322,363Net Cash Provided by (Used in) Operating Activities$56,174,667$(13,255,624)Cash Flows from Financing ActivitiesProceeds from the issuance of common stock$—$13,153,366Sales load for common stock issued—(197,464)Offering costs paid for common stock issued(75,000)(303,959)Payment for repurchase of common stock(2,436,708)—Commission for repurchase of common stock(10,975)—Stockholder distributions paid(20,245,390)(22,326,367)Financing costs paid on Notes Payable(50,000)(1,698,806)Repayments of SBA-guaranteed debentures(39,000,000)(16,250,000)Borrowings under Credit Facility92,200,000104,400,000Repayments of Credit Facility(106,467,800)(117,817,800)Net Cash (Used in) Provided by Financing Activities$(76,085,873)$33,188,720Net (Decrease) Increase in Cash and Cash Equivalents$(19,911,206)$19,933,096Cash and Cash Equivalents Balance at Beginning of Period$25,050,156$20,058,594Cash and Cash Equivalents Balance at End of Period$5,138,950$39,991,690Supplemental and Non-Cash ActivitiesCash paid for interest expense$16,896,905$14,354,048Income and excise tax refund, net(1,051,749)1,672,230Exchange of investments8,670,8881,663,301Reconciliation of Core Net Investment Income(1)(Unaudited)Three Months EndedSix Months EndedJune 30, 2026June 30, 2025June 30, 2026June 30, 2025Net investment income$7,531,149$9,561,227$15,029,177$19,350,036Income tax expense29,685428,951390,156928,498Core net investment income$7,560,834$9,990,178$15,419,333$20,278,534Per share amounts:Net investment income per share$0.26$0.34$0.52$0.69Core net investment income per share$0.26$0.35$0.53$0.72Reconciliation of Realized Net Investment Income(2)(Unaudited)Three Months EndedSix Months EndedJune 30, 2026June 30, 2025June 30, 2026June 30, 2025Net investment income$7,531,149$9,561,227$15,029,177$19,350,036Net realized loss on investments(7,243,523)(860,027)(6,493,113)(6,827,248)Net realized (loss) gain on foreign currency translation(1,811)(20,003)1,853(49,658)Total realized net investment income$285,815$8,681,197$8,537,917$12,473,130Per share amounts:Net investment income per share$0.26$0.34$0.52$0.69Realized net investment income per share$0.01$0.31$0.30$0.45