Stellus Capital Investment Corporation Reports Results for its first fiscal quarter ended March 31, 2022

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Stellus Capital Investment Corporation

May 11, 2022, 16:36 ET

HOUSTON, May 11, 2022 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) ("Stellus" or "the Company") today announced financial results for its first fiscal quarter ended March 31, 2022.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid results in the first quarter in which we grew our investment portfolio, maintained net asset value, covered the dividend, and generated $3.4 million of realized gains. In particular, core and GAAP net investment income covered our first quarter regular dividend of $0.28 per share. In April, in addition to our regular dividend of $0.28 per quarter in the aggregate, our Board of Directors declared an additional aggregate dividend of $0.06 for the second quarter. These dividends total $0.34 per share in the aggregate for the second quarter and are payable in increments of $0.1133 for each of May, June and July. Our portfolio at fair value increased by $65 million, ending the quarter at $838 million."

FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)

	Quarter Ended		Quarter Ended
	Q1-22		Q1-21

	Amount	Per Share	Amount	Per Share

Net investment income	$5.51	$0.28	$5.06	$0.26

Core net investment income⁽¹⁾	5.75	0.29	5.38	0.28

Net realized gains on investments	3.46	0.18	0.46	0.02

Net realized loss on foreign currency	(0.01)	(0.00)	-	-

Loss on debt extinguishment	-	-	(0.54)	(0.03)

Total realized income⁽²⁾	8.96	0.46	4.98	0.25

Distributions	(5.46)	(0.28)	(4.87)	(0.25)

Net unrealized (depreciation)
appreciation on investments	(3.72)	(0.19)	0.12	0.01

Provision for taxes on unrealized appreciation
on investments in taxable subsidiaries	(0.02)	(0.00)	(0.17)	(0.01)

Net increase in net assets resulting
from operations	$5.22	0.27	$4.94	0.25

Weighted average shares outstanding	19,517,761		19,486,003


(1)	Core net investment income, as presented, excludes the impact of capital gains incentive fees 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 loss on debt extinguishment; all U.S GAAP measures.

PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts and number of portfolio companies)

	As of	As of
	March 31,	December 31,
	2022	2021
Investments at fair value	$838.0	$772.9
Total assets	$866.7	$821.3
Net assets	$285.0	$285.1
Shares outstanding	19,532,519	19,517,595
Net asset value per share	$14.59	$14.61


	Quarter Ended	Quarter Ended
	March 31,	March 31,
	2022	2021

New investments	$74.5	$93.4
Repayments of investments	(10.0)	(33.6)
Net activity	$64.5	$59.8

			As of	As of
			March 31,	December 31,
			2022	2021

Number of portfolio company investments			78	73
Number of debt investments			64	55

Weight average yield of debt and other income producing investments ⁽³⁾
Cash			7.4%	7.4%
Payment-in-kind ("PIK')			0.2%	0.2%
Fee amortization			0.4%	0.4%
Total			8.0%	8.0%

Weighted average yield on total investments ⁽⁴⁾
Cash			6.9%	6.9%
Payment-in-kind ("PIK')			0.2%	0.2%
Fee amortization			0.4%	0.4%
Total			7.5%	7.5%


(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 of our common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expense 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 loans and equity.

Results of Operations

Investment income for the three months ended March 31, 2022 and 2021 totaled $15.5 million and $14.0 million, respectively, most of which was interest income from portfolio investments.

Operating expenses for the three months ended March 31, 2022 and 2021, totaled $10.0 million and $8.9 million, respectively. For the same respective periods, base management fees totaled $3.5 million and $3.0 million, there were no income incentive fees for both periods, capital gains incentive fees (reversal) totaled ($0.0) million and $0.1 million, fees and expenses related to our borrowings totaled $4.9 million and $4.3 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million for both periods, income tax totaled $0.3 million and $0.2 million and other expenses totaled $0.8 million for both periods.

Net investment income was $5.5 million and $5.1 million, or $0.28 and $0.26 per common share based on weighted average common shares outstanding for the three months ended March 31, 2022 and 2021 of 19,517,761 and 19,486,003, respectively.

The capital gains incentive fee reversal of ($0.0) million for the three months ended March 31, 2022 was accrued for GAAP purposes due to the decrease in net realized and unrealized gains over the quarter. Such fees, as calculated and accrued, would not necessarily be payable under the investment advisory agreement, and may never be paid based upon the computation of incentive fees in subsequent periods. The income tax expense accrual of $0.3 million for the three months ended March 31, 2022 was accrued based on estimates of undistributed taxable income, which was generated largely from capital gains. Core net investment income, which is a non-U.S GAAP measure that excludes these accruals, for the three months ended March 31, 2022 was $5.8 million, or $0.29 per share; and for the three months ended March 31, 2021 was $5.4 million, or $0.28 per share.

The Company's investment portfolio had a net change in unrealized (depreciation) appreciation for the three months ended March 31, 2022 and 2021, of ($3.7) million and $0.1 million, respectively. For the three months ended March 31, 2022 and 2021, the Company had realized gains of $3.5 million and $0.5 million, respectively.

Net increase in net assets resulting from operations totaled $5.2 million and $4.9 million, or $0.27 and $0.25 per common share, based on weighted average common shares outstanding for the three months ended March 31, 2022 and 2021 of 19,517,761 and 19,486,003, respectively.

Liquidity and Capital Resources

As of March 31, 2022, our amended and restated 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 $250.0 million on a committed basis. As of March 31, 2022 and 2021, our credit facility had an accordion feature which allowed for potential future expansion of the facility size to $280.0 million. As of March 31, 2022 and December 31, 2021, we had $205.5 million and $177.3 million in outstanding borrowings under the credit facility, respectively.

For the three months ended March 31, 2022, our operating activities used cash of $62.9 million primarily in connection with purchases and origination of portfolio investments, which was slightly offset by repayments of our investments. For the same period, our financing activities provided cash of $43.4 million, primarily from proceeds from SBA-guaranteed debentures and net borrowings on our Credit Facility.

For the three months ended March 31, 2021, our operating activities used cash of $57.1 million, primarily in connection with the purchase and origination of new portfolio investments, which was slightly offset by repayments of our investments. For the same period, our financing activities provided cash of $69.0 million, due to the issuance of our 4.875% fixed-rate notes due 2026 offset by the repayment of our 5.75% fixed-rate notes due 2022 and net repayments on our Credit Facility.

Distributions

During the three months ended March 31, 2022 and 2021, we declared aggregate distributions of $0.28 per share and $0.25 per share ($5.5 million and $4.9 million, respectively) for each quarter. 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 Activity

On January 5, 2022, we invested $0.1 million in the equity of Tower Arch Infolinks Media, LP, an existing portfolio company. On March 31, 2022, we invested an additional $0.1 million in the equity of the company.

On February 1, 2022, we invested $6.2 million in the first lien term loan and committed $0.1 million in the unfunded revolver of BLP Buyer, Inc., a distributor of lifting solutions. Additionally, we invested $0.8 million in the equity of the company.

On February 7, 2022, we invested $5.4 million in the first lien term loan and committed $0.1 million in the unfunded revolver and $0.1 million in the unfunded delayed draw term loan of Service Minds Company, LLC, a provider of residential electrical services.

On February 10, 2022, we invested $1.0 million in the first lien term loan of NuSource Financial, LLC, an existing portfolio company.

On February 15, 2022, we invested £10.0 million pounds sterling ($13.5 million dollars) in the first lien term loan and committed $0.1 million in the unfunded delayed draw term loan and $0.1 million in the unfunded revolver of a provider of Oracle-focused IT services. Additionally, we invested $0.8 million in the equity of the company.

On February 24, 2022, we invested $13.5 million in the first lien term loan and committed $0.1 million in the unfunded revolver of BDS Solutions Intermediateco, LLC, a leading provider of outsourced marketing services.

On March 1, 2022, we received $3.9 million in full realization on the equity of Mobile Acquisition Holdings, LP, resulting in a $3.4 million realized gain.

On March 16, 2022, we invested $9.1 million in the first lien term loan and committed $0.1 million in the unfunded revolver and $0.1 million in the unfunded delayed draw term loan of Exigo, LLC, a software platform for direct selling organizations. Additionally, we invested $0.4 million in the equity of the company.

On March 22, 2022, we invested $5.0 million in the second lien term loan of TFH Reliability, LLC, an existing portfolio company.

On March 22, 2022, we invested $12.0 million in the first lien term loan and committed $0.1 million in the unfunded revolver and $0.1 million in the unfunded delayed draw term loan of Axis Portable Air, LLC, an air conditioning, heating, and air quality equipment rental company. Additionally, we invested $0.4 million in the preferred equity of the company.

On March 31, 2022, we invested $7.5 million in the first lien term loan of Credit Connection, LLC, an existing portfolio company.

On March 31, 2022, we invested $0.1 million in the convertible term loan of Venbrook Holdings, LLC, an existing portfolio company.

Events Subsequent to March 31, 2022

On April 1, 2022, we invested $0.1 million in the first lien term loan and committed $0.1 million in the revolver of Cancos Tile & Stone LLC, a regional distributor, seller, and custom fabricator of high-end ceramic and stone tile products and accessories. Additionally, we invested $0.1 million in the equity of the company.

On April 1, 2022, we invested $0.1 million in the first lien term loan and committed $0.1 million in the revolver of Tilley Chemical Company, Inc., a distributor of specialty chemicals, oils, and lubricants into the food & beverage, lubricants, flavor and fragrances, personal care, and other chemicals end-markets.

On April 4, 2022, we invested $11.3 million in the first lien term loan and committed $0.1 million in the revolver of Microbe Formulas LLC, a provider of dietary supplements and other natural solutions for detox and gut health.

On April 7, 2022, we received $1.3 million in full realization on the equity of Energy Labs Holding Corp., resulting in a $0.7 million realized gain.

On April 15, 2022, we invested $6.6 million in the first lien term loan of Anne Lewis Strategies, LLC, an existing portfolio company.

On April 15, 2022, we invested $0.1 million in the equity of Pure TopCo, LLC, an existing portfolio company.

On April 25, 2022 we received full repayment on the first lien term loan of SQAD, LLC for total proceeds of $14.1 million. We also received $2.4 million in full realization on the equity of the company, resulting in a $2.1 million realized gain.

On April 29, 2022, we invested $10.0 million in the first lien term loan and committed $0.1 million in the revolver and $0.1 million in the delayed draw term loan of Florachem Holdings, LLC, a distiller and supplier of natural citrus, pine, and specialty inputs. Additionally, we invested $0.4 million in the equity of the company.

Credit Facility

The outstanding balance under the credit facility as of May 11, 2022 was $204.1 million.

SBA-guaranteed Debentures

The total balance of SBA-guaranteed debentures outstanding as of May 11, 2022 was $290.0 million.

ATM Program

Since March 31, 2022, the Company issued 13,416 shares under the ATM Program, for gross proceeds of $0.2 million and underwriting and other expenses of less than $0.1 million. The average per share offering price of shares issued in the ATM Program subsequent to March 31, 2022 was $14.01. The Advisor agreed to reimburse the Company for underwriting fees and expenses to the extent the issuance of shares would be dilutive in nature. As such, the Advisor reimbursed the Company less than $0.1 which resulted in net proceeds of $0.2 million, or $14.61 per share.

Distributions Declared

On April 19, 2022, our board of directors declared a regular monthly distribution for each of April 2022, May 2022 and June 2022 as follows:

Declared	Ex-Dividend Date	Record Date	Payment Date	Amount per Share
4/19/2022	4/28/2022	4/29/2022	5/13/2022	$	0.0933
4/19/2022	5/26/2022	5/27/2022	6/15/2022	$	0.0933
4/19/2022	6/29/2022	6/30/2022	7/15/2022	$	0.0933

On April 19, 2022, our board of directors declared a supplemental monthly distribution for each of April 2022, May 2022 and June 2022 as follows:

Declared	Ex-Dividend Date	Record Date	Payment Date	Amount per Share
4/19/2022	4/28/2022	4/29/2022	5/13/2022	$	0.02
4/19/2022	5/26/2022	5/27/2022	6/15/2022	$	0.02
4/19/2022	6/29/2022	6/30/2022	7/15/2022	$	0.02

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Thursday, May 12, 2022 at 10:00 AM, Central Daylight 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) 220-8451 (domestic). Use passcode 2120806. Starting approximately two hours after the conclusion of the call, a replay will be available through Friday, May 20, 2022 by dialing (888) 203-1112 and entering passcode 2120806. The replay will also be available on the company's website.

For those wishing to participate via Live Webcast, connect via the Public Company (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 Corporation

The 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, as amended. 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 middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien (including unitranche) loans, second lien loans and unsecured debt financing, with corresponding equity co-investments. 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.

Forward-Looking Statements

Statements 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, including statements about COVID-19 and its impacts, 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.

Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
[email protected]

PART I — FINANCIAL INFORMATION

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

			March 31,
			2022		December 31,
			(Unaudited)		2021
ASSETS
	Non-controlled, non-affiliated investments, at fair value
		(amortized cost of $853,845,723 and $785,005,957, respectively)	$	837,991,490	$	772,873,326
	Cash and cash equivalents			24,630,783		44,174,856
	Receivable for sales and repayments of investments			558,621		536,105
	Interest receivable			2,764,672		2,944,599
	Other receivables			50,495		54,752
	Deferred tax asset			130,121		151,278
	Deferred offering costs			41,369		14,888
	Prepaid expenses			502,255		512,214
		Total Assets	$	866,669,806	$	821,262,018
LIABILITIES
	Notes payable		$	98,213,123	$	98,102,973
	Credit Facility payable			203,707,297		175,451,116
	SBA-guaranteed debentures			264,412,047		244,615,903
	Dividends payable			2,213,037		1,171,059
	Management fees payable			3,946,938		3,454,225
	Income incentive fees payable			749,130		1,749,130
	Capital gains incentive fees payable			3,345,934		3,388,151
	Interest payable			838,418		3,693,662
	Unearned revenue			466,995		529,726
	Administrative services payable			404,688		386,368
	Income tax payable			2,514,202		3,269,514
	Other accrued expenses and liabilities			821,596		338,958
		Total Liabilities	$	581,633,405	$	536,150,785
	Commitments and contingencies (Note 7)
		Net Assets	$	285,036,401	$	285,111,233
NET ASSETS
	Common stock, par value $0.001 per share (100,000,000 shares
		authorized; 19,532,519 and 19,517,595 issued and outstanding,
		respectively)	$	19,533	$	19,518
	Paid-in capital			274,726,776		274,559,121
	Accumulated undistributed surplus			10,290,092		10,532,594
		Net Assets	$	285,036,401	$	285,111,233
		Total Liabilities and Net Assets	$	866,669,806	$	821,262,018
		Net Asset Value Per Share	$	14.59	$	14.61

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

				For the		For the
				three		three
				months ended		months ended
				March 31,		March 31,
				2022		2021

INVESTMENT INCOME
	Interest income			$	15,116,951	$	13,512,777
	Other income				377,453		475,087
		Total Investment Income		$	15,494,404	$	13,987,864
OPERATING EXPENSES
	Management fees			$	3,492,713	$	2,963,861
	Valuation fees				139,588		128,353
	Administrative services expenses				474,318		453,389
	Capital gains incentive (reversal) fees				(42,217)		83,281
	Professional fees				312,062		268,965
	Directors' fees				96,500		91,500
	Insurance expense				124,507		117,507
	Interest expense and other fees				4,891,597		4,323,478
	Income tax expense				279,417		239,981
	Other general and administrative expenses				211,736		256,918
		Total Operating Expenses		$	9,980,221	$	8,927,233
		Net Investment Income		$	5,514,183	$	5,060,631
	Net realized gain on non-controlled, non-affiliated
		investments		$	3,458,090	$	462,228
	Net realized loss on foreign currency translation			$	(7,350)	$	—
	Loss on debt extinguishment			$	—	$	(539,250)
	Net change in unrealized (depreciation) appreciation
		on non-controlled, non-affiliated investments		$	(3,721,602)	$	121,983
	Provision for taxes on net unrealized appreciation
		on investments		$	(21,157)	$	(167,804)
		Net Increase in Net Assets
			Resulting from Operations	$	5,222,164	$	4,937,788
		Net Investment Income Per Share—basic and diluted		$	0.28	$	0.26
		Net Increase in Net Assets Resulting
			from Operations Per Share—basic and diluted	$	0.27	$	0.25
		Weighted Average Shares of Common Stock
			Outstanding—basic and diluted		19,517,761		19,486,003
		Distributions Per Share—basic and diluted		$	0.28	$	0.25

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS


		Common Stock						Accumulated
		Number		Par		Paid-in		undistributed
		of shares		value		capital		surplus (deficit)		Net Assets
Balances at December 31, 2020		19,486,003	$	19,486	$	276,026,667	$	(2,685,504)	$	273,360,649
Net investment income		-		-		-		5,060,631		5,060,631
Net realized gain on non-controlled,
	non-affiliated investments	-		-		-		462,228		462,228
Loss on debt extinguishment								(539,250)		(539,250)
Net change in unrealized appreciation on
	non-controlled, non-affiliated investments	-		-		-		121,983		121,983
Provision for taxes on unrealized appreciation
	on investments	-		-		-		(167,804)		(167,804)
Distributions from net investment income		-		-		-		(4,869,552)		(4,869,552)
Balances at March 31, 2021		19,486,003	$	19,486	$	276,026,667	$	(2,617,268)	$	273,428,885

Balances at December 31, 2021		19,517,595	$	19,518	$	274,559,121	$	10,532,594	$	285,111,233
Net investment income		-		-		-		5,514,183		5,514,183
Net realized gain on non-controlled,
	non-affiliated investments	-		-		-		3,458,090		3,458,090
Net realized loss on foreign currency translation		-		-		-		(7,350)		(7,350)
Net change in unrealized depreciation on
	non-controlled, non-affiliated investments	-		-		-		(3,721,602)		(3,721,602)
Provision for taxes on unrealized appreciation
	on investments	-		-		-		(21,157)		(21,157)
Distributions from net investment income		-		-		-		(5,464,666)		(5,464,666)
Issuance of common stock, net of offering costs		14,924		15		167,655		-		167,670
Balances at March 31, 2022		19,532,519	$	19,533	$	274,726,776	$	10,290,092	$	285,036,401

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

			For the		For the
			three		three
			months ended		months ended
			March 31,		March 31,
			2022		2021
Cash flows from operating activities
Net increase in net assets resulting from operations			$	5,222,164	$	4,937,788
	Adjustments to reconcile net increase in net assets
		from operations to net cash used in operating activities:
		Purchases of investments		(74,535,403)		(93,290,837)
		Proceeds from sales and repayments of investments		10,008,127		33,473,269
		Net change in unrealized depreciation (appreciation) on investments		3,721,602		(121,983)
		Increase in investments due to PIK		(330,111)		(118,329)
		Amortization of premium and accretion of discount, net		(546,806)		(521,051)
		Deferred tax provision		21,157		167,804
		Amortization of loan structure fees		133,262		114,583
		Amortization of deferred financing costs		83,670		122,460
		Amortization of loan fees on SBA-guaranteed debentures		283,144		233,814
		Net realized gain on investments		(3,458,090)		(455,560)
		Loss on debt extinguishment		—		539,250
	Changes in other assets and liabilities
		Increase in interest receivable		179,927		37,231
		Increase in other receivables		4,257		—
		Increase in prepaid expenses		9,959		30,873
		Increase (decrease) in management fees payable		492,713		(861,461)
		Decrease in income incentive fees payable		(1,000,000)		(559,161)
		(Decrease) increase in capital gains incentive fees payable		(42,217)		83,281
		Increase (decrease) in administrative services payable		18,320		(2,486)
		Decrease in interest payable		(2,855,244)		(318,658)
		Decrease in unearned revenue		(62,731)		(48,202)
		Decrease in income tax payable		(755,312)		(632,039)
		Increase in other accrued expenses and liabilities		482,638		137,090
Net Cash Used In Operating Activities			$	(62,924,974)	$	(57,052,324)
Cash flows from Financing Activities
		Proceeds from the issuance of common stock	$	221,176	$	—
		Sales load for commons stock issued		(3,137)		—
		Offering costs paid for common stock issued		(50,369)		—
		Stockholder distributions paid		(4,422,688)		(3,246,365)
		Repayment of Notes		—		(48,875,000)
		Proceeds from issuance of Notes		—		100,000,000
		Financing costs paid on Notes		—		(2,238,553)
		Proceeds from SBA-guaranteed debentures		20,000,000		33,500,000
		Financing costs paid on SBA-guaranteed debentures		(487,000)		(1,615,725)
		Financing costs paid on Credit facility		(25,881)		—
		Borrowings under Credit Facility		57,388,800		113,300,000
		Repayments of Credit Facility		(29,240,000)		(121,800,000)
Net Cash Provided by Financing Activities			$	43,380,901	$	69,024,357
Net (Decrease) Increase in Cash and Cash Equivalents			$	(19,544,073)	$	11,972,033
	Cash and Cash Equivalents balance at beginning of period			44,174,856		18,477,602
Cash and Cash Equivalents Balance at End of Period			$	24,630,783	$	30,449,635
Supplemental and Non-Cash Activities
	Cash paid for interest expense		$	7,216,009	$	4,166,438
	Income and excise tax paid			1,034,730		870,000
	Increase in dividends payable			1,041,978		1,623,187
	Increase (decrease) in deferred offering costs			26,481		(90,000)
	Gain on conversion of equity investment			—		6,668

Reconciliation of Core Net Investment Income ⁽¹⁾
(Unaudited)

		Quarter	Quarter
		ended	ended
		March 31, 2022	March 31, 2021
Net investment income		$5,514,183	$5,060,631
	Capital gains incentive fee	(42,217)	83,281
	Income tax expense	279,417	239,981
Core net investment income		$5,751,383	$5,383,893

Per share amounts:
Net investment income per share		$0.28	$0.26
Core net investment income per share		$0.29	$0.28

Reconciliation of Realized Net Investment Income ⁽²⁾
(Unaudited)

		Quarter	Quarter
		ended	ended
		March 31, 2022	March 31, 2021
Net investment income		$5,514,183	$5,060,631
	Net realized gain on investments	3,458,090	462,228
	Net realized loss on foreign currency translation	(7,350)	—
	Loss on debt extinguishment	—	(539,250)
Total Realized Net Investment Income		$8,964,923	$4,983,609

Per share amounts:
Net investment income per share		$0.28	$0.26
Realized net investment income per share		$0.46	$0.25