Net Increase (Decrease) in Net Assets per Common Share

3 Months Ended

Sep. 30, 2022

Net Increase (Decrease) in Net Assets per Common Share

Basic earnings per share is calculated by dividing the net increase (decrease) in net assets resulting from operations, less preferred dividends, by the weighted average number of common shares outstanding. Diluted earnings per share gives effect to all dilutive potential common shares outstanding using the if-converted method for our 5.50% Preferred Stock (Refer to Note 9) and, beginning on July 1, 2022, for the 2025 Notes.

Subsequent to the adoption of ASU 2020-06 on July 1, 2022, for the purpose of calculating diluted net increase in net assets resulting from operations applicable to common stockholders per share for the three months ended September 30, 2022, the Company utilized the if-converted method, which assumes full share settlement for the aggregate value of the 2025 Notes, in addition to the 5.50% Preferred Stock. Under the allowed modified retrospective method, diluted net increase in net assets resulting from operations applicable to common stockholders per share for prior periods were not restated to reflect the impact of ASU 2020-06. Diluted earnings per share excludes all dilutive potential common shares if their effect is anti-dilutive.

During the three months ended September 30, 2022, conversion of our convertible instruments has an anti-dilutive effect and therefore, conversion is not assumed. During the three months ended September 30, 2021, we did not have potential common shares that would be anti-dilutive.

The following information sets forth the computation of basic and diluted earnings per common share during the three months ended September 30, 2022 and September 30, 2021:


	For the three months ended September 30, 2022
	Basic		Diluted
Net increase (decrease) in net assets resulting from operations applicable to Common Stockholders	$	(105,199)	$	(105,199)
Basic weighted average common shares outstanding	394,337,440		394,337,440
Basic earnings (loss) per share	$	(0.27)	$	(0.27)


	For the Three Months Ended September 30, 2021
	Basic		Diluted
Net increase in net assets resulting from operations applicable to Common Stockholders	$	209,724	$	212,131
Weighted average common shares outstanding	388,886,142		409,052,821
Earnings per share	$	0.54	$	0.52