Investments

12 Months Ended

Sep. 30, 2025

Investments [Abstract]

Investments

Note 3. Investments

The composition of our investments as of September 30, 2025 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):

	Amortized Cost		Percentage			Fair Value		Percentage
Senior Secured First Lien Term Loans	$	125,373		38.6	%	$	116,567		38.6	%
Senior Secured Notes		17,039		5.3			17,457		5.8
Fund Investment		2,194		0.7			2,227		0.7
Equity/Warrants		179,783		55.4			166,021		54.9
Total Investments	$	324,389		100.0	%	$	302,272		100.0	%

The composition of our investments as of September 30, 2024 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):

	Amortized Cost		Percentage			Fair Value		Percentage
Senior Secured First Lien Term Loans	$	129,957		49.8	%	$	113,990		50.0	%
Senior Secured Notes		18,127		7.0			18,476		8.1
Fund Investment		1,746		0.7			1,525		0.7
Equity/Warrants		110,930		42.5			93,925		41.2
Total Investments	$	260,760		100.0	%	$	227,916		100.0	%

In connection with certain of the Company’s investments, the Company receives warrants that are obtained for the objective of increasing the total investment returns and are not held for hedging purposes. At September 30, 2025 and 2024, the total fair value of warrants was $815.5 thousand and $82.7 thousand, respectively, and were included in investments at fair value on the Consolidated Statements of Assets and Liabilities. During the year ended September 30, 2025, the Company acquired two additional warrants in existing portfolio companies. During the year ended September 30, 2024, the Company did not acquire any additional warrants in an existing portfolio company.

Total change in unrealized depreciation related to warrants for the years ended September 30, 2025, 2024 and 2023 was $46.5 thousand, $123.7 thousand and $143.9 thousand, respectively, and was recorded on the Consolidated Statements of Operations as net change in unrealized appreciation/(depreciation) on investments. The warrants are received in connection with individual investments and are not subject to master netting arrangements.

The following table shows the portfolio composition by industry grouping at fair value at September 30, 2025 (dollars in thousands):

	Fair Value		Percentage
Services: Business	$	56,249		18.6	%
Insurance		48,470		16.0
Real Estate		47,632		15.8
Services: Consumer		38,418		12.7
Aerospace & Defense		25,881		8.6
Hotel, Gaming & Leisure		22,328		7.4
Construction & Building		18,131		6.0
High Tech Industries		16,961		5.6
Metals & Mining		8,763		2.9
Automotive		7,860		2.6
Media: Broadcasting & Subscription		4,850		1.6
Consumer Discretionary		4,502		1.5
Banking		2,227		0.7
Total	$	302,272		100.0	%

The following table shows the portfolio composition by industry grouping at fair value at September 30, 2024 (dollars in thousands):

	Fair Value		Percentage
Real Estate	$	50,162		22.0	%
Services: Business		46,706		20.5
Services: Consumer		28,121		12.3
Hotel, Gaming & Leisure		24,253		10.6
Construction & Building		17,095		7.5
High Tech Industries		12,352		5.5
Automotive		12,316		5.4
Metals & Mining		12,161		5.3
Media: Broadcasting & Subscription		9,003		4.0
Energy: Oil & Gas		4,333		1.9
Packaging		3,505		1.5
Consumer Discretionary		3,456		1.5
Aerospace & Defense		2,827		1.2
Banking		1,525		0.7
Insurance		101		0.1
Total	$	227,916		100.0	%

The Company invests in portfolio companies principally located in the United States. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business.

The following table shows the portfolio composition by geographic location at fair value at September 30, 2025 (dollars in thousands):

	Fair Value		Percentage
Northeast	$	114,610		37.9	%
Southeast		106,037		35.1
West		31,549		10.4
Midwest		19,272		6.4
Southwest		15,645		5.2
Mid-Atlantic		314		0.1
International		14,845		4.9
Total	$	302,272		100.0	%

The following table shows the portfolio composition by geographic location at fair value at September 30, 2024 (dollars in thousands):

	Fair Value		Percentage
Northeast	$	87,269		38.3	%
Southeast		61,276		26.9
Midwest		34,648		15.2
West		31,951		14.0
Southwest		2,749		1.2
Mid-Atlantic		375		0.2
International		9,648		4.2
Total	$	227,916		100.0	%

Transactions With Affiliated/Controlled Companies

The Company had investments in portfolio companies designated as Affiliated Investments and Controlled Investments under the 1940 Act. Transactions with Affiliated Investments and Controlled Investments during the years ended September 30, 2025 and 2024 were as follows:

Name of Investment(1)(2)	Type of Investment	Fair Value at September 30, 2024		Purchases/(Sales) of or Advances/ (Distributions)			Transfers In/(Out)  of Affiliates		Unrealized Gain/(Loss)			Realized Gain/(Loss)			Fair Value at September 30, 2025		Earned Income		Fee/Other Income
Affiliated Investments
Advocates for Disabled Vets, LLC (dba Reps for Vets)	Senior Secured First Lien Term Loan	$	-	$	8,769,172		$	-	$	28,042		$	1,299		$	8,798,513	$	614,409	$	-
	Equity		-		3,375,000			-		(15,489	)			-		3,359,511		-		-
Black Angus Steakhouses, LLC	Senior Secured First Lien Delayed Draw Term Loan		751,207		(243,889	)		-		124,542			(631,860)			-		-		-
	Senior Secured First Lien Term Loan		-		-			-		7,767,533			(7,767,533)			-		-		-
	Senior Secured First Lien Super Priority DDTL		1,647,776		-			-		273,184			(1,920,960)			-		-		-
FST Holdings Parent, LLC	Equity		12,351,802		8,289			-		(1,399,350	)		-			10,960,741		254,231		-
MB Precision Investment Holdings LLC	Senior Secured First Lien Term Loan		-		6,694,041			-		(297,667	)		2,187			6,398,561		-		-
	Senior Secured Delayed Draw Term Loan		-		468,621			-		21,685			-			490,306		-		-
	Senior Secured First Lien Revolver		-		2,077,048			-		(101,701	)		-			1,975,347		-		-
	Equity		-		3,167,157			-		(441,749	)		-			2,725,408		-		-
	Warrants		-		827,409			-		(154,391	)		-			673,018		-		-
Total Affiliated Investments		$	14,750,785	$	25,142,848		$	-	$	5,804,639		$	(10,316,867)		$	35,381,405	$	868,640	$	-

Name of Investment(1)(2)	Type of Investment	Fair Value at September 30, 2024		Purchases/(Sales) of or Advances/ (Distributions)			Transfers In/(Out)  of Controlled		Unrealized Gain/(Loss)			Realized Gain/(Loss)		Fair Value at September 30, 2025		Earned Income		Fee/Other Income
Controlled Investments
ECC Capital Corp.	Senior Secured First Lien Term Loan	$	7,422,012	$	(425,000	)	$	-	$	-		$	-	$	6,997,012	$	716,278	$	-
	Equity		4,872,000		-			-		1,764,000			-		6,636,000		-		197,201
FlexFIN, LLC	Equity Interest		36,683,046		497,716			-		-			-		37,180,762		5,024,928		-
NSG Captive, Inc.	Equity		101,000		49,154,076			-		(785,536	)		-		48,469,540		-		522,487
NVTN LLC	Senior Secured First Lien Delayed Draw Term Loan		5,500,000		3,400,000			-		(13,230	)		13,230		8,900,000		922,828		-
	Senior Secured First Lien Term Loan B		16,353,589		-			-		(2,925,989	)		-		13,427,600		813,121		-
Total Controlled Investments		$	70,931,647	$	52,626,792		$	-	$	(1,960,755	)	$	13,230	$	121,610,914	$	7,477,155	$	719,688

Name of Investment(1)(2)	Type of Investment	Fair Value at September 30, 2023		Purchases/(Sales) of or Advances/ (Distributions)			Transfers In/(Out)  of Affiliates			Unrealized Gain/(Loss)			Realized Gain/(Loss)			Fair Value at September 30, 2024		Earned Income
Affiliated Investments
1888 Industrial Services, LLC	Senior Secured First Lien Term Loan C	$	751,479	$	(1,096,561	)	$	(196,411	)	$	439,778		$	101,715		$	-	$	123,326
	Senior Secured First Lien Term Loan A		-		-			-			9,473,068			(9,473,068	)		-		-
	Revolving Credit Facility		4,632,177		(5,112,074	)		-			-			479,897			-		158,704
Black Angus Steakhouses, LLC	Senior Secured First Lien Delayed Draw Term Loan		875,749		-			-			(124,542	)		-			751,207		-
	Senior Secured First Lien Term Loan		1,459,249		-			-			(1,459,249	)		-			-		-
	Senior Secured First Lien Super Priority DDTL		1,920,960		-			-			(273,184	)		-			1,647,776		-
FST Holdings Parent, LLC	Equity		10,000,003		-			-			2,351,799			-			12,351,802		199,388
Maritime Wireless Holdings LLC	Senior Secured First Lien Term Loan B		7,500,000		(7,373,166	)		-			(126,834	)		-			-		535,857
	Equity		10,150,000		(11,900,000	)		-			(5,150,000	)		6,900,000			-		-
Total Affiliated Investments		$	37,289,617	$	(25,481,801	)	$	(196,411	)	$	5,130,836		$	(1,991,456	)	$	14,750,785	$	1,017,275

Name of Investment(1)(2)	Type of Investment	Fair Value at September 30, 2023		Purchases/(Sales) of or Advances/ (Distributions)			Transfers In/(Out)  of Controlled			Unrealized Gain/(Loss)			Realized Gain/(Loss)		Fair Value at September 30, 2024		Earned Income
Controlled Investments
ECC Capital Corp.	Senior Secured Promissory Note	$	-	$	7,422,012		$	-		$	-			-	$	7,422,012	$	962,959
	Equity		-		4,257,002			-			614,998			-		4,872,000		33,280
FlexFIN, LLC	Equity Interest		38,870,711		(2,187,665	)		-			-			-		36,683,046		3,972,352
Kemmerer Operations, LLC	Senior Secured First Lien Term Loan		3,383,877		5,769,816			(9,153,693	)		-			-		-		268,831
	Equity		9,133,052		(10,378,988	)		-			(7,296,895	)		8,542,831		-		-
NSG Captive, Inc.	Equity		-		101,000			-			-			-		101,000		-
NVTN LLC	Senior Secured First Lien Delayed Draw Term Loan		7,214,856		(1,693,577	)		-			(21,279	)		-		5,500,000		1,035,741
	Senior Secured First Lien Term Loan B		5,037,547		-			-			11,316,042			-		16,353,589		423,013
	Equity		-		11,900,000			-			(11,900,000	)		-		-		-
Total Controlled Investments		$	63,640,043	$	15,189,600		$	(9,153,693	)	$	(7,287,134	)	$	8,542,831	$	70,931,647	$	6,696,176

(1) The par amount and additional detail are shown in the Consolidated Schedules of Investments.

(2) Securities with a zero value at the beginning and end of the period, and those that had no transaction activity were excluded from the roll forward.

Purchases/(sales) of or advances to/(distributions) from Affiliated Investments and Controlled Investments represent the proceeds from sales and settlements of investments, purchases, originations and participations, investment increases due to PIK interest as well as net amortization of premium/(discount) on investments and are included in the purchases and sales presented on the Consolidated Statements of Cash Flows for the years ended September 30, 2025, 2024 and 2023. Transfers in/(out) of Affiliated Investments and Controlled Investments represent the fair value for the quarter an investment became or was removed as an Affiliated Investment or a Controlled Investment. Income received from Affiliated Investments and Controlled Investments is included in total investment income on the Consolidated Statements of Operations for the years ended September 30, 2025, 2024 and 2023.

Unconsolidated Significant Subsidiaries

In accordance with the SEC’s Regulation S-X and GAAP, the Company evaluated and determined that it had three unconsolidated subsidiaries, FlexFIN, LLC, NSG Captive Inc., and NVTN LLC, that are deemed to be a “significant subsidiary” as of September 30, 2025. For the year ended September 30, 2024, the Company evaluated and determined that it had one unconsolidated subsidiary, FlexFIN, LLC, that is deemed to be a “significant subsidiary.” In accordance with Rule 3-09, separate audited financial statements of FlexFIN, LLC for the year ended September 30, 2025 are being filed herewith as Exhibit 99.2. In accordance with Rule 4-08(g), summarized financial information for September 30, 2025 is presented below for NSG Captive Inc. and NVTN LLC.

Balance Sheet	September 30, 2025
Total Assets	$	335,887
Total Liabilities		293,589

Income Statement	For the Year Ended September 30, 2025
Total Income	$	68,791
Total Expenses		71,448
Net Income	$	(2,656	)