Stellus Capital Investment Corporation Reports Results for its First Fiscal Quarter Ended March 31, 2023

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Stellus Capital Investment Corporation

May 09, 2023, 17:05 ET

HOUSTON, Texas, May 9, 2023 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus" or the "Company") today announced financial results for its first fiscal quarter ended March 31, 2023.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report strong results for the quarter ended March 31, 2023, in which both U.S. GAAP net investment income of $0.46 per share and Non-U.S. GAAP Core net investment income of $0.45 per share, which excludes the impact of capital gains incentive fees and income taxes, the majority of which are excise taxes, covered the regular dividend of $0.40 per share. Our portfolio grew by $33 million to $878 million at fair value and the loan portfolio was yielding 11.4%, on average at March 31, 2023."

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

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
	Amount	Per Share	Amount	Per Share
Net investment income	$9.07	$0.46	$5.51	$0.28
Core net investment income⁽¹⁾	8.87	0.45	5.75	0.29
Net realized gain on investments	0.03	-	3.46	0.18
Net realized loss on foreign currency translation	(0.04)	-	(0.01)	-
Total realized income⁽²⁾	$9.06	$0.46	$8.96	$0.46
Distributions	(7.95)	(0.40)	(5.46)	(0.28)
Net unrealized depreciation on investments	(4.25)	(0.22)	(3.72)	(0.19)
Provision for taxes on unrealized appreciation on investments in taxable subsidiaries	(0.08)	-	(0.02)	-
Net increase in net assets resulting from operations	$4.74	0.24	$5.22	0.27
Weighted average shares outstanding		19,779,988		19,517,761


(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. generally accepted accounting principles ("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, 2023	December 31, 2022
Investments at fair value	$877.5	$844.7
Total assets	$900.9	$898.2
Net assets	$280.9	$275.8
Shares outstanding	20,248,383	19,666,769
Net asset value per share	$13.87	$14.02


	Three Months Ended	Three Months Ended
	March 31, 2023	March 31, 2022
New investments	$41.2	$74.5
Repayments of investments	(5.9)	(10.0)
Net activity	$35.3	$64.5

	As of	As of
	March 31, 2023	December 31, 2022
Number of portfolio company investments	88	85
Number of debt investments	76	73

Weight average yield of debt and other income producing investments⁽³⁾
Cash	10.6 %	10.3 %
Payment-in-kind ("PIK")	0.4 %	0.4 %
Fee amortization	0.4 %	0.4 %
Total	11.4 %	11.1 %

Weighted average yield on total investments⁽⁴⁾
Cash	10.0 %	9.7 %
Payment-in-kind ("PIK")	0.4 %	0.3 %
Fee amortization	0.4 %	0.4 %
Total	10.8 %	10.4 %


(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, 2023 and 2022 totaled $24.1 million and $15.5 million, respectively, most of which was interest income from portfolio investments.

Operating expenses for the three months ended March 31, 2023 and 2022, totaled $15.0 million and $10.0 million, respectively. For the same respective periods, base management fees totaled $3.7 million and $3.5 million, income incentive fees totaled $2.1 million and $0.0 million, capital gains incentive (reversal) fees totaled ($0.6) million and ($0.0) million, fees and expenses related to our borrowings totaled $7.9 million and $4.9 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million for both periods, income tax totaled $0.4 million and $0.3 million and other expenses totaled $1.0 million and $0.8 million.

The capital gains incentive fee had a reversal of ($0.6) million for the three months ended March 31, 2023 due to the increase in unrealized losses, net of realized 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 $0.4 million for the three months ended March 31, 2023 was accrued based on estimates of undistributed taxable income, which was generated largely from net investment income.

Net investment income was $9.1 million and $5.5 million, or $0.46 and $0.28 per common share based on weighted average common shares outstanding of 19,779,988 and 19,517,761 for the three months ended March 31, 2023 and 2022, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes the capital gains incentive fee (reversal) and income tax expense accruals, for the three months ended March 31, 2023 and 2022 was $8.9 million and $5.8 million, or $0.45 and $0.29 per share, respectively.

For the three months ended March 31, 2023 and 2022, the Company's investment portfolio had a net change in unrealized depreciation of ($4.2) million and ($3.7) million, respectively, and the Company had realized gains of $0.0 million and $3.5 million, respectively.

Net increase in net assets resulting from operations totaled $4.8 million and $5.2 million, or $0.24 and $0.27 per common share, based on weighted average common shares outstanding of 19,779,988 and 19,517,761 for the three months ended March 31, 2023 and 2022, respectively.

Liquidity and Capital Resources

As of March 31, 2023, 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 $265.0 million on a committed basis. As of March 31, 2023 and December 31, 2022, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size to $280.0 million. As of March 31, 2023 and December 31, 2022, we had $198.3 million and $199.2 million in outstanding borrowings under the Credit Facility, respectively.

The Company issued 581,614 shares during the three months ended March 31, 2023 under the At-the-Market Program ("ATM Program"), for gross proceeds of $8.4 million. The average per share offering price of shares issued under the ATM Program during the three months ended March 31, 2023 was $14.47. Stellus Capital Management, LLC, the Company's investment adviser (the "Advisor"), agreed to reimburse the Company for underwriting fees to the extent the per share price of the shares to the public, less underwriting fees, was less then net asset value per share. For the three months ended March 31, 2023, the Advisor reimbursed the Company $0.1 million, which resulted in net proceeds of $8.3 million, or $14.38 per share, excluding the impact of offering expenses.

Distributions

During the three months ended March 31, 2023 and 2022, we declared aggregate distributions of $0.40 and $0.28 per share, respectively ($8.0 million and $5.5 million, respectively). 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

The Company invested in the following portfolio companies during the three months ended March 31, 2023:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	January 5, 2023	Advanced Barrier Extrusions, LLC*	Manufacturer of high barrier forming web films	$	35,308	Equity
New Investment	January 23, 2023	Evriholder Acquisition, Inc.	Designer and supplier of impulse products and merchandising solutions to retailers	$	13,000,000	Senior Secured – First Lien
				$	100,000	Revolver commitment
				$	873,333	Equity
New Investment	January 31, 2023	Red's All Natural, LLC	Premium frozen food manufacturer	$	10,916,882	Senior Secured – First Lien
				$	710,600	Equity
Add-On Investment	March 1, 2023	Elliott Aviation, LLC*	Provider of services to the business aviation sector	$	500,000	Revolver commitment
Add-On Investment	March 6, 2023	Whisps Holdings LP*	Importer of Italian cheese in the U.S.	$	107,418	Equity
New Investment	March 15, 2023	Cerebro Buyer, LLC	Manufacturer of single-use electrodes for medical procedures	$	4,682,323	Senior Secured – First Lien
				$	100,000	Revolver commitment
				$	62,961	Equity
				$	341,091	Equity
Add-On Investment	March 27, 2023	BDS Solutions Intermediateco, LLC*	Leading provider of outsourced marketing services	$	1,702,782	Senior Secured – First Lien
New Investment	March 31, 2023	American Refrigeration, LLC	Provider of industrial refrigeration installation and maintenance services	$	8,275,678	Senior Secured – First Lien
				$	100,000	Revolver commitment
				$	100,000	Delayed Draw Term Loan Commitment
* Existing portfolio company				$	141,261	Equity

The Company realized investments in the following portfolio companies during the three months ended March 31, 2023:

Activity Type

Date

Company Name

Proceeds Received

Realized Gain

Instrument Type

Full Repayment

March 29, 2023

AIP ATCO Buyer, LLC

99,500

—

Senior Secured – First Lien

Events Subsequent to March 31, 2023

The Company's management has evaluated subsequent events through May 9, 2023. There have been no subsequent events that require recognition or disclosure except for the following described below.

Investment Portfolio

The Company invested in the following portfolio companies subsequent to March 31, 2023:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	April 3, 2023	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	570,279	Senior Secured – First Lien
Add-On Investment	April 11, 2023	ADS Group Opco, LLC*	Full-service manufacturer for original equipment manufacturers, prime contractors, and Tier I suppliers across the defense, space, and aerospace industries	$	88,733	Equity
Add-On Investment	April 13, 2023	Tower Arch Infolinks Media, LP*	Advertising placement partner for small to mid-sized publishers	$	1,093	Equity
Add-On Investment	April 14, 2023	BLP Buyer, Inc.*	Distributor of lifting solutions	$	1,729,958	Senior Secured – First Lien
				$	229,010	Equity
Add-On Investment	April 17, 2023	Axis Portable Air, LLC*	Air conditioning, heating, and air quality equipment rental company	$	1,893,610	Senior Secured – First Lien
Add-On Investment	April 27, 2023	CompleteCase, LLC*	Provider of online uncontested divorce solutions	$	66,667	Revolver commitment
				$	111,408	Equity
New Investment	April 28, 2023	Impact Home Services, LLC	Residential, garage door, electrical, and plumbing services provider	$	5,936,899	Senior Secured – First Lien
				$	100,000	Revolver commitment
				$	310,844	Equity
New Investment	May 1, 2023	RIA Advisory, LLC	Provider of Oracle software implementation services	$	6,000,000	Senior Secured – First Lien
				$	100,000	Revolver commitment
* Existing portfolio company				$	243,467	Equity

Credit Facility

The outstanding balance under the Credit Facility as of May 9, 2023 was $200.4 million.

SBA-guaranteed Debentures

The total balance of SBA-guaranteed debentures outstanding as of May 9, 2023 was $313.6 million.

ATM program

Since March 31, 2023, the Company issued 587,363 shares under the ATM Program, for gross proceeds of $8.1 million and underwriting and other expenses of $0.1 million. The average per share offering price of shares issued in the ATM Program subsequent to March 31, 2023 was $13.87. 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 $0.2 million which resulted in net proceeds of $8.2 million, or $14.02 per share.

Distributions Declared

On April 19, 2023, our Board of Directors declared a regular monthly distribution for each of April, May, and June 2023, as follows:


	Ex-Dividend	Record	Payment	Amount per
Declared	Date	Date	Date	Share
4/19/2023	4/28/2023	5/1/2023	5/15/2023	$	0.1333
4/19/2023	5/30/2023	5/31/2023	6/15/2023	$	0.1333
4/19/2023	6/29/2023	6/30/2023	7/14/2023	$	0.1333

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, May 10, 2023 at 9:00 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 589075. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, May 24, 2023 by dialing (877) 481-4010 and entering passcode 48362. 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 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]

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (unaudited)

	March 31, 2023
	(unaudited)		December 31, 2022
ASSETS
Non-controlled, non-affiliated investments, at fair value (amortized cost of $912,581,782 and $875,823,177, respectively)	$	877,493,781	$	844,733,638
Cash and cash equivalents		17,852,100		48,043,329
Receivable for sales and repayments of investments		777,568		718,794
Interest receivable		4,171,829		3,984,409
Other receivables		34,245		34,245
Deferred offering costs		3,800		1,100
Prepaid expenses		518,853		667,267
Total Assets	$	900,852,176	$	898,182,782
LIABILITIES
Notes payable	$	98,659,842	$	98,549,692
Credit Facility payable		196,906,509		197,685,281
SBA-guaranteed debentures		308,212,703		307,895,195
Dividends payable		2,699,110		—
Management fees payable		4,557,841		7,150,407
Income incentive fees payable		4,589,243		2,464,408
Capital gains incentive fees payable		—		569,528
Interest payable		1,203,768		4,640,841
Related party payable		413,928		1,060,321
Unearned revenue		273,102		320,675
Administrative services payable		396,870		356,919
Income tax payable		1,549,833		1,175,373
Deferred tax liability		140,696		61,936
Other accrued expenses and liabilities		396,686		475,593
Total Liabilities	$	620,000,131	$	622,406,169
Commitments and contingencies (Note 7)
Net Assets	$	280,852,045	$	275,776,613
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 20,248,383 and 19,666,769 issued and outstanding, respectively	$	20,248	$	19,667
Paid-in capital		283,404,708		275,114,720
Total distributable (loss) earnings		(2,572,911)		642,226
Net Assets	$	280,852,045	$	275,776,613
Total Liabilities and Net Assets	$	900,852,176	$	898,182,782
Net Asset Value Per Share	$	13.87	$	14.02

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three		For the three
	months ended		months ended
	March 31, 2023		March 31, 2022
INVESTMENT INCOME
Interest income	$	23,408,604	$	15,116,951
Other income		666,743		377,453
Total Investment Income	$	24,075,347	$	15,494,404
OPERATING EXPENSES
Management fees	$	3,735,102	$	3,492,713
Valuation fees		147,073		139,588
Administrative services expenses		461,964		474,318
Income incentive fees		2,124,835		—
Capital gains incentive fee reversal		(569,528)		(42,217)
Professional fees		430,848		312,062
Directors' fees		117,250		96,500
Insurance expense		120,546		124,507
Interest expense and other fees		7,886,424		4,891,597
Income tax expense		374,763		279,417
Other general and administrative expenses		178,450		211,736
Total Operating Expenses	$	15,007,727	$	9,980,221
Net Investment Income	$	9,067,620	$	5,514,183
Net realized gain on non-controlled, non-affiliated investments	$	34,967	$	3,458,090
Net realized loss on foreign currency translation		(39,912)		(7,350)
Net change in unrealized depreciation on non-controlled, non-affiliated investments		(4,249,642)		(3,721,602)
Net change in unrealized appreciation on foreign currency translation		1,874		—
Provision for taxes on net unrealized appreciation on investments		(78,760)		(21,157)
Net Increase in Net Assets Resulting from Operations	$	4,736,147	$	5,222,164
Net Investment Income Per Share—basic and diluted	$	0.46	$	0.28
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted	$	0.24	$	0.27
Weighted Average Shares of Common Stock Outstanding—basic and diluted		19,779,988		19,517,761
Distributions Per Share—basic and diluted	$	0.40	$	0.28

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)

	Common Stock					Total
	Number	Par		Paid-in		distributable
	of shares	value		capital		earnings (loss)		Net Assets
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 realized gain 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⁽¹⁾	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

Balances at December 31, 2022	19,666,769	$	19,667	$	275,114,720	$	642,226	$	275,776,613
Net investment income	—		—		—		9,067,620		9,067,620
Net realized gain on non-controlled, non-affiliated investments	—		—		—		34,967		34,967
Net realized loss on foreign currency translation	—		—		—		(39,912)		(39,912)
Net change in unrealized depreciation on non-controlled, non-affiliated investments	—		—		—		(4,249,642)		(4,249,642)
Net change in unrealized appreciation on foreign currency translations	—		—		—		1,874		1,874
Provision for taxes on unrealized appreciation on investments	—		—		—		(78,760)		(78,760)
Distributions from net investment income	—		—		—		(7,951,284)		(7,951,284)
Issuance of common stock, net of offering costs⁽¹⁾	581,614		581		8,289,988		—		8,290,569
Balances at March 31, 2023	20,248,383	$	20,248	$	283,404,708	$	(2,572,911)	$	280,852,045


(1)	See Note 4 to the Consolidated Financial Statements on Form 10-Q filed with the Securities and Exchange Commission on May 9, 2023 for more information on offering costs.

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	For the three		For the three
	months ended		months ended
	March 31, 2023		March 31, 2022
Cash flows from operating activities
Net increase in net assets resulting from operations	$	4,736,147	$	5,222,164
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(41,237,273)		(74,535,403)
Proceeds from sales and repayments of investments		5,890,813		10,008,127
Net change in unrealized depreciation on investments		4,249,642		3,721,602
Net change in unrealized depreciation on foreign currency translations		10,126		—
Increase in investments due to PIK		(769,954)		(330,111)
Amortization of premium and accretion of discount, net		(665,998)		(546,806)
Deferred tax provision		78,760		21,157
Amortization of loan structure fees		143,822		133,262
Amortization of deferred financing costs		110,150		83,670
Amortization of loan fees on SBA-guaranteed debentures		317,508		283,144
Net realized gain on investments		(34,967)		(3,458,090)
Changes in other assets and liabilities
(Increase) decrease in interest receivable		(187,420)		179,927
Decrease in other receivable		—		4,257
Decrease in prepaid expenses		148,414		9,959
(Decrease) increase in management fees payable		(2,592,566)		492,713
Increase (decrease) in income incentive fees payable		2,124,835		(1,000,000)
Decrease in capital gains incentive fees payable		(569,528)		(42,217)
Increase in administrative services payable		39,951		18,320
Decrease in interest payable		(3,437,073)		(2,855,244)
Decrease in related party payable		(646,393)		—
Decrease in unearned revenue		(47,573)		(62,731)
Increase (decrease) in income tax payable		374,460		(755,312)
(Decrease) increase in other accrued expenses and liabilities		(78,907)		482,638
Net Cash Used in Operating Activities	$	(32,043,024)	$	(62,924,974)
Cash flows from Financing Activities
Proceeds from the issuance of common stock	$	8,487,127	$	221,176
Sales load for common stock issued		(126,303)		(3,137)
Offering costs paid for common stock issued		(72,955)		(50,369)
Stockholder distributions paid		(5,252,174)		(4,422,688)
Proceeds from SBA-guaranteed debentures		—		20,000,000
Financing costs paid on SBA-guaranteed debentures		—		(487,000)
Financing costs paid on Credit facility		—		(25,881)
Borrowings under Credit Facility		13,300,000		57,388,800
Repayments of Credit Facility		(14,483,900)		(29,240,000)
Net Cash Provided by Financing Activities	$	1,851,795	$	43,380,901
Net Decrease in Cash and Cash Equivalents	$	(30,191,229)	$	(19,544,073)
Cash and Cash Equivalents Balance at Beginning of Period		48,043,329		44,174,856
Cash and Cash Equivalents Balance at End of Period	$	17,852,100	$	24,630,783
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	10,752,017	$	7,216,009
Income and excise tax paid		303		1,034,730
Increase in dividends payable		2,699,110		1,041,978
Increase in deferred offering costs		2,700		26,481

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

	Three Months Ended	Three Months Ended
	March 31, 2023	March 31, 2022
Net investment income	$9,067,620	$5,514,183
Capital gains incentive fee	(569,528)	(42,217)
Income tax expense	374,763	279,417
Core net investment income	$8,872,855	$5,751,383

Per share amounts:
Net investment income per share	$0.46	$0.28
Core net investment income per share	$0.45	$0.29

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

	Three Months Ended	Three Months Ended
	March 31, 2023	March 31, 2022
Net investment income	$9,067,620	$5,514,183
Net realized gain on investments	34,967	3,458,090
Net realized loss on foreign currency translation	(39,912)	(7,350)
Total Realized Net Investment Income	$9,062,675	$8,964,923

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