UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00971

STELLUS CAPITAL INVESTMENT CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Maryland	46-0937320
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

4400 Post Oak Parkway, Suite 2200

Houston, Texas 77027

(Address of Principal Executive Offices) (Zip Code)

(713) 292-5400

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SCM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act     ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐     No ☒

The number of shares of the issuer’s Common Stock, par value $0.001 per share, outstanding as of May 12, 2025 was 28,416,148.

STELLUS CAPITAL INVESTMENT CORPORATION

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of March 31, 2025 (unaudited) and December 31, 2024	1
	Consolidated Statements of Operations for the three month periods ended March 31, 2025 and 2024 (unaudited)	2
	Consolidated Statements of Changes in Net Assets for the three month periods ended March 31, 2025 and 2024 (unaudited)	3
	Consolidated Statements of Cash Flows for the three month periods ended March 31, 2025 and 2024 (unaudited)	4
	Consolidated Schedules of Investments as of March 31, 2025 (unaudited) and December 31, 2024	5
	Notes to Unaudited Financial Statements	36
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	68
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	85
Item 4.	Controls and Procedures	86
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	87
Item 1A.	Risk Factors	87
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	87
Item 3.	Defaults Upon Senior Securities	87
Item 4.	Mine Safety Disclosures	87
Item 5.	Other Information	87
Item 6.	Exhibits	88
SIGNATURES		89

PART I — FINANCIAL INFORMATION

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

	March 31, 2025
	(unaudited)		December 31, 2024
ASSETS
Controlled investments at fair value (amortized cost of $17,934,808 for both periods)	$	7,707,712	$	7,652,436
Non-controlled, non-affiliated investments, at fair value (amortized cost of $979,896,856 and $943,853,898, respectively)		983,396,065		945,845,252
Cash and cash equivalents		10,888,821		20,058,594
Receivable for sales and repayments of investments		446,586		335,689
Interest receivable		6,229,272		4,947,765
Income tax receivable		2,383,725		1,301,965
Other receivables		108,750		87,995
Related party receivable		—		3,687
Prepaid expenses		576,553		666,866
Total Assets	$	1,011,737,484	$	980,900,249
LIABILITIES
Notes Payable	$	99,554,505	$	99,444,355
Credit Facility payable		219,057,554		172,314,315
SBA-guaranteed debentures		305,190,923		321,251,939
Dividends payable		3,750,689		3,663,233
Management fees payable		4,054,726		4,034,109
Income incentive fees payable		1,651,506		3,109,560
Interest payable		1,492,428		5,281,343
Related party payable		1,290,893		—
Unearned revenue		620,803		548,626
Administrative services payable		380,523		393,513
Other accrued expenses and liabilities		1,926,752		937,316
Total Liabilities	$	638,971,302	$	610,978,309
Commitments and contingencies (Note 7)
Net Assets	$	372,766,182	$	369,921,940
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,137,203 and 27,481,118 issued and outstanding, respectively)	$	28,137	$	27,481
Paid-in capital		388,486,702		379,549,272
Total distributable loss		(15,748,657)		(9,654,813)
Net Assets	$	372,766,182	$	369,921,940
Total Liabilities and Net Assets	$	1,011,737,484	$	980,900,249
Net Asset Value Per Share	$	13.25	$	13.46

1

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three months ended
	March 31, 2025		March 31, 2024
INVESTMENT INCOME
From controlled investments:
Interest income	$	—	$	81,636
From non-controlled, non-affiliated investments
Interest income		24,127,116		24,956,851
Other income		824,542		958,262
Total Investment Income	$	24,951,658	$	25,996,749
OPERATING EXPENSES
Management fees	$	4,054,726	$	3,852,233
Valuation fees		157,889		156,507
Administrative services expenses		449,298		490,901
Income incentive fees		2,136,491		2,509,110
Professional fees		418,031		339,627
Directors’ fees		111,250		108,250
Insurance expense		97,090		124,989
Interest expense and other fees		8,263,019		7,767,573
Income tax expense		499,547		370,719
Other general and administrative expenses		218,351		245,275
Total Operating Expenses	$	16,405,692	$	15,965,184
Income incentive fee waiver		(1,242,843)		(204,351)
Total Operating Expenses, net of fee waivers	$	15,162,849	$	15,760,833
Net Investment Income	$	9,788,809	$	10,235,916
Net realized loss on non-controlled, non-affiliated investment	$	(5,967,221)	$	(20,384,731)
Net realized loss on foreign currency translations		(29,655)		(25,106)
Net change in unrealized appreciation on controlled investments		55,276		536,570
Net change in unrealized appreciation on non-controlled, non-affiliated investments		1,138,017		22,982,020
Net change in unrealized appreciation (depreciation) on foreign currency translations		8,319		(3,602)
Provision for taxes on net unrealized appreciation on investments		—		(192,607)
Net Increase in Net Assets Resulting from Operations	$	4,993,545	$	13,148,460
Net Investment Income Per Share—basic and diluted	$	0.35	$	0.42
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted	$	0.18	$	0.54
Weighted Average Shares of Common Stock Outstanding—basic and diluted		27,602,612		24,125,642
Distributions Per Share—basic and diluted	$	0.40	$	0.40

2

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)

	Common Stock					Total
	Number	Par		Paid-in		distributable
	of shares	value		capital		(loss)		Net Assets
Balances at December 31, 2023	24,125,642	$	24,125	$	335,918,984	$	(16,003,321)	$	319,939,788
Net investment income	—		—		—		10,235,916		10,235,916
Net realized loss on investments	—		—		—		(20,384,731)		(20,384,731)
Net realized loss on foreign currency translations	—		—		—		(25,106)		(25,106)
Net change in unrealized appreciation on investments	—		—		—		23,518,590		23,518,590
Net change in unrealized depreciation on foreign currency translations	—		—		—		(3,602)		(3,602)
Provision for taxes on unrealized appreciation on investments	—		—		—		(192,607)		(192,607)
Distributions from net investment income	—		—		—		(9,647,844)		(9,647,844)
Balances at March 31, 2024	24,125,642	$	24,125	$	335,918,984	$	(12,502,705)	$	323,440,404
Balances at December 31, 2024	27,481,118	$	27,481	$	379,549,272	$	(9,654,813)	$	369,921,940
Net investment income	—		—		—		9,788,809		9,788,809
Net 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	—		—		—		1,193,293		1,193,293
Net change in unrealized depreciation on foreign currency translations	—		—		—		8,319		8,319
Distributions from net investment income	—		—		—		(11,087,389)		(11,087,389)
Issuance of common stock, net of offering costs(1)	656,085		656		8,937,430		—		8,938,086
Balances at March 31, 2025	28,137,203	$	28,137	$	388,486,702	$	(15,748,657)	$	372,766,182

(1) See Note 4 to the consolidated financial statements contained herein for more information on offering costs.

3

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	For three months ended
	March 31, 2025		March 31, 2024
Cash flows from operating activities
Net increase in net assets resulting from operations	$	4,993,545	$	13,148,460
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(55,415,263)		(28,516,430)
Proceeds from sales and repayments of investments		14,986,423		31,169,595
Net change in unrealized appreciation on investments		(1,193,293)		(23,518,590)
Net change in unrealized (appreciation) depreciation on foreign currency translations		(8,319)		3,602
Increase in investments due to PIK		(976,479)		(750,054)
Amortization of premium and accretion of discount, net		(715,755)		(702,543)
Deferred tax provision		—		192,607
Amortization of loan structure fees		315,618		264,707
Amortization of deferred financing costs		110,150		111,374
Amortization of loan fees on SBA-guaranteed debentures		188,984		314,055
Net realized loss on investments		5,967,221		20,384,731
Changes in other assets and liabilities
Increase in interest receivable		(1,281,507)		(1,602,062)
Increase in income tax receivable		(1,081,760)		(1,085,022)
Increase in other receivables		(20,755)		—
Decrease in related party receivables		3,687		—
Decrease in prepaid expenses		90,313		21,256
Increase (decrease) in management fees payable		20,617		(1,066,303)
Decrease in income incentive fees payable		(1,458,054)		(140,107)
(Decrease) increase in administrative services payable		(12,990)		22,897
Decrease in interest payable		(3,788,915)		(3,748,120)
Increase in related party payable		1,290,893		—
Increase in unearned revenue		72,177		14,589
Increase (decrease) in other accrued expenses and liabilities		989,436		(61,688)
Net Cash (Used) Provided in Operating Activities	$	(36,924,026)	$	4,456,954
Cash flows from Financing Activities
Proceeds from the issuance of common stock	$	9,256,982	$	—
Sales load for common stock issued		(138,908)		—
Offering costs paid for common stock issued		(179,988)		(5,209)
Stockholder distributions paid		(10,999,933)		(6,431,896)
Repayments of SBA-guaranteed debentures		(16,250,000)		—
Financing costs paid on Credit Facility		—		(49,969)
Borrowings under Credit Facility		67,700,000		50,000,000
Repayments of Credit Facility		(21,633,900)		(25,333,900)
Net Cash Provided by Financing Activities	$	27,754,253	$	18,179,026
Net (Decrease) Increase in Cash and Cash Equivalents	$	(9,169,773)	$	22,635,980
Cash and Cash Equivalents Balance at Beginning of Period	$	20,058,594	$	26,125,741
Cash and Cash Equivalents Balance at End of Period	$	10,888,821	$	48,761,721
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	11,437,182	$	10,825,557
Income and excise tax paid		1,581,307		1,455,741
Increase in distributions payable		87,456		3,215,948
Increase in deferred offering costs		—		5,209
Exchange of investments		1,663,301		8,256,411

4

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2025

(unaudited)

															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security(2)	Coupon			Floor		Cash		PIK(8)		Date	Maturity	Industry	Shares(3)		Cost		Value(1)		Assets
Control investments (23)
EH Real Estate Services, LLC														Skokie, IL
Term Loan A-1	(16)	First Lien		15.00	%	-	%	-	%	-	%	9/3/2021	9/3/2026	FIRE: Real Estate	$	1,882,226		1,882,226		291,745	0.08	%
Term Loan A-2	(16)	First Lien		15.00	%	-	%	-	%	-	%	4/3/2023	9/3/2026			650,943		650,943		100,896	0.03	%
Term Loan A-3	(16)	First Lien		15.00	%	-	%	-	%	-	%	6/7/2023	9/3/2026			230,678		230,678		35,755	0.01	%
Term Loan A-4	(16)	First Lien		15.00	%	-	%	-	%	-	%	7/12/2023	9/3/2026			1,505,537		1,505,537		1,505,537	0.40	%
Term Loan A-5	(16)	First Lien		15.00	%	-	%	-	%	-	%	1/8/2024	9/3/2026			5,710,182		5,710,182		5,710,182	1.53	%
Revolver	(16)(22)	First Lien		15.00	%	-	%	-	%	-	%	10/3/2023	9/3/2026			63,597		63,597		63,597	0.02	%
EH Holdco, LLC Common Units		Equity										10/3/2023				15,356		3		-	0.00	%
EH Holdco, LLC Series A Preferred Units		Equity										9/3/2021				7,892		7,891,642		-	0.00	%
Total																	$	17,934,808	$	7,707,712	2.07	%
Total Control investments																	$	17,934,808	$	7,707,712	2.07	%
Non-controlled, non-affiliated investments	(4)(5)
2X LLC														Berwyn, PA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	9.30	%			6/5/2023	6/5/2028	Services: Business	$	5,417,705		5,321,643		5,390,616	1.45	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	9.30	%			10/31/2023	6/5/2028			1,426,662		1,399,715		1,419,529	0.38	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	9.30	%			12/2/2024	6/5/2028			3,842,049		3,788,954		3,822,839	1.03	%
Revolver	(9)(11)	First Lien	3M SOFR+	5.00	%	2.00	%	9.30	%			6/5/2023	6/5/2028			42,500		42,500		42,288	0.01	%
2X Investors LP Class A Units		Equity										6/5/2023				58,949		176,915		1,280,170	0.34	%
Total																	$	10,729,727	$	11,955,442	3.21	%
Ad.Net Acquisition, LLC	(9)													Los Angeles, CA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.00	%	1.00	%	10.56	%			5/7/2021	5/7/2026	Services: Business	$	15,003,676		14,944,374		15,003,677	4.02	%
Revolver	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	10.56	%			5/7/2021	5/7/2026			854,217		854,217		854,217	0.23	%
Ad.Net Holdings, Inc. Series A Common Stock (SBIC II)	(5)	Equity										5/7/2021				7,794		77,941		0	0.00	%
Ad.Net Holdings, Inc. Series A Preferred Stock (SBIC II)	(5)	Equity										5/7/2021				7,015		701,471		742,327	0.20	%
Total																	$	16,578,003	$	16,600,221	4.45	%
AdCellerant LLC	(9)													Denver, CO
Term A Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	6.00	%	2.00	%	10.32	%			12/12/2023	12/12/2028	Media: Advertising, Printing & Publishing	$	9,875,000		9,718,428		9,776,250	2.62	%
AdCellerant Holdings, LLC Serires A Units		Equity										12/12/2023				728,710		728,710		577,851	0.16	%
Total																	$	10,447,138	$	10,354,101	2.78	%
ADS Group Opco, LLC														Lakewood, CO
Term Loan (SBIC II)	(5)(25)	First Lien		5.00	%	-	%	-	%	-	%	6/4/2021	12/31/2027	Aerospace & Defense	$	12,851,659		12,778,192		9,895,777	2.65	%
Priority Revolver (SBIC II)	(5)(9)(25)	First Lien		5.00	%	-	%	-	%	-	%	9/30/2024	12/31/2027			24,887		24,887		49,774	0.01	%
ADS Group Topco, LLC Class A Units		Equity										6/4/2021				77,626		288,691		-	0.00	%
ADS Group Topco, LLC Class B Units		Equity										6/4/2021				56,819		211,309		-	0.00	%
ADS Group Topco, LLC Class D Units		Equity										9/30/2024				432		-		-	0.00	%
ADS Group Topco, LLC Class Y Units		Equity										4/11/2023				48,216		165,027		-	0.00	%
ADS Group Topco, LLC Class Z Units		Equity										6/15/2022				72,043		267,929		-	0.00	%
Total																	$	13,736,035	$	9,945,551	2.66	%
Advanced Barrier Extrusions, LLC														Rhinelander, WI
Term Loan B (SBIC)	(4)(11)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	11/30/2020	11/30/2026	Containers, Packaging, & Glass	$	16,843,750		16,733,670		3,031,876	0.81	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	12/6/2024	11/30/2026			795,882		970,378		2,387,646	0.64	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	2/5/2025	11/30/2026			875,000		875,000		2,625,000	0.71
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	3/26/2025	11/30/2026			500,000		500,000		1,500,000	0.41
Term Loan A (SBIC)	(4)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	3/26/2025	11/30/2026			2,607,637		565,204		469,375	0.14
Revolver (SBIC)	(4)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	3/26/2025	11/30/2026			1,558,434		337,789		280,518	0.09
GP ABX Holdings Partnership, L.P. Partner Interests		Equity										8/8/2018				644,737		528,395		-	0.00	%
GP ABX Holdings Partnership, L.P. Series B Preferred Interests		Equity										1/5/2023				1,562		156,182		-	0.00	%
Total																	$	20,666,618	$	10,294,415	2.80	%
AGT Robotique Inc.	(9)													Trois Rivieres, Canada
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.00	%	9.55	%			6/24/2024	6/22/2029	Capital Equipment	$	10,646,479		10,458,011		10,486,782	2.81	%
Total																	$	10,458,011	$	10,486,782	2.81	%

5

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2025

(unaudited)

															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security(2)	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares(3)		Cost		Value(1)		Assets
American Refrigeration, LLC	(9)													Jacksonville, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.25	%	1.50	%	10.55	%			3/31/2023	3/31/2028	Capital Equipment	$	8,110,164		7,974,299		8,110,164	2.18	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.50	%	10.55	%			3/31/2023	3/31/2028			99,000		98,035		99,000	0.03	%
AR-USA Holdings, LLC Class A Units		Equity										3/31/2023				141		135,778		219,793	0.06	%
Total																	$	8,208,112	$	8,428,957	2.27	%
AMII Acquisition, LLC	(9)													Coral Gables, FL
Term Loan (SBIC II )	(5)(11)	First Lien	3M SOFR+	4.75	%	1.50	%	9.05	%			12/4/2024	12/4/2029	Services: Consumer	$	8,797,419		8,672,288		8,665,458	2.32	%
AMII Holdings, LP Class B Units		Equity										12/3/2024				14,246		142,460		152,156	0.04	%
Total																	$	8,814,748	$	8,817,614	2.36	%
Amika OpCo LLC	(9)													Brooklyn, NY
Term Loan	(11)	First Lien	6M SOFR+	5.25	%	0.75	%	9.62	%			7/1/2022	7/1/2029	Consumer Goods: Non-Durable	$	94,638		93,323		94,638	0.03	%
Term Loan	(11)	First Lien	6M SOFR+	5.75	%	0.75	%	10.33	%			12/5/2023	7/1/2029			9,584,569		9,427,310		9,584,569	2.57	%
Ishtar Co-Invest-B LP Partnership Interests		Equity										7/1/2022				77,778		38,133		297,220	0.08	%
Oshun Co-Invest-B LP Partnership Interests		Equity										7/1/2022				22,222		21,141		84,919	0.02	%
Total																	$	9,579,907	$	10,061,346	2.70	%
Anne Lewis Strategies, LLC	(9)													Washington, DC
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.00	%	2.00	%	10.30	%			3/5/2021	5/9/2028	Services: Business	$	9,038,404		8,996,650		9,038,404	2.42	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.00	%	2.00	%	10.30	%			4/15/2022	5/9/2028			2,820,612		2,804,691		2,820,612	0.76	%
SG AL Investment, LLC Common Units	(6)	Equity										3/5/2021				1,000		390,053		3,374,747	0.91	%
SG AL Investment, LLC Common-A Units		Equity										12/22/2023				239		492,905		985,826	0.26	%
Total																	$	12,684,299	$	16,219,589	4.35	%
APE Holdings, LLC														Deer Park, TX
Class A Units		Equity										9/5/2014		Chemicals, Plastics, & Rubber		375,000		375,000		12,651	0.00	%
Total																	$	375,000	$	12,651	0.00	%
Atmosphere Aggregator Holdings II, L.P.														Atlanta, GA
Common Units	(6)	Equity										1/26/2016		Services: Business		254,250		-		2,352,178	0.63	%
Stratose Aggregator Holdings, L.P. Common Units	(6)	Equity										6/30/2015				750,000		-		8,624,653	2.31	%
Total																	$	-	$	10,976,831	2.94	%
ArborWorks, LLC														Oakhurst, CA
Term Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	-	%	10.92	%	11/6/2023	11/6/2028	Environmental Industries	$	3,595,292		3,595,292		3,595,292	0.96	%
Revolver	(9)	First Lien		15.00	%			-	%	15.00	%	11/6/2023	11/6/2028			742,007		742,007		742,007	0.20	%
ArborWorks Intermediate Holdco, LLC Class A-1 Preferred Units		Equity										11/6/2023				16,037		3,610,847		4,781,869	1.28	%
ArborWorks Intermediate Holdco, LLC Class B-1 Preferred Units		Equity										11/6/2023				16,037		-		-	0.00	%
ArborWorks Intermediate Holdco, LLC Class A-1 Common Units		Equity										11/6/2023				1,923		-		-	0.00	%
Total																	$	7,948,146	$	9,119,168	2.44	%
Axis Portable Air, LLC	(9)													Phoenix, AZ
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.25	%	2.00	%	9.55	%			3/22/2022	3/22/2028	Capital Equipment	$	9,381,250		9,277,166		9,381,250	2.52	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.25	%	2.00	%	9.55	%			4/17/2023	3/22/2028			1,869,940		1,844,637		1,869,940	0.50	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.25	%	2.00	%	9.55	%			3/22/2022	3/22/2028			98,750		98,160		98,750	0.03	%
Axis Air Parent, LLC Preferred Units		Equity										3/22/2022				4,436		443,636		1,804,491	0.48	%
Total																	$	11,663,599	$	13,154,431	3.53	%
Baker Manufacturing Company, LLC														Evansville, IN
BSC Blue Water Holdings, LLC Series A Units (SBIC II)	(5)	Equity										7/5/2022		Capital Equipment		743,770		743,770		994,182	0.27	%
Total																	$	743,770	$	994,182	0.27	%
Bart & Associates, LLC	(9)													McLean, VA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.00	%	1.00	%	9.30	%			8/16/2024	8/16/2030	High Tech Industries	$	8,898,009		8,753,435		8,853,519	2.38	%
Revolver	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	9.30	%			8/16/2024	8/16/2030			209,335		209,335		208,288	0.06	%
B&A Partners Holding, LLC Series A Preferred Units		Equity										8/16/2024				418,671		418,671		436,897	0.12	%
Total																	$	9,381,441	$	9,498,704	2.56	%
BL Products Parent, L.P.														Houston, TX
Class A Units		Equity										2/1/2022		Capital Equipment		879,060		983,608		1,366,995	0.37	%
Total																	$	983,608	$	1,366,995	0.37	%

6

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2025

(unaudited)

														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security(2)	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares(3)		Cost		Value(1)		Assets
Café Valley, Inc.													Phoenix, AZ
Term Loan	(11)	First Lien	3M SOFR+	7.24	%	2.00	%	11.54	%		8/28/2019	8/28/2026	Beverage & Food	$	15,328,571		15,328,571		15,328,571	4.12	%
CF Topco LLC Units		Equity									8/28/2019				9,160		916,015		1,927,649	0.52	%
Total																$	16,244,586	$	17,256,220	4.64	%
Camp Profiles LLC	(9)												Boston, MA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.25	%	1.00	%	9.70	%		9/3/2021	9/3/2026	Media: Advertising, Printing & Publishing	$	9,891,250		9,824,901		9,891,250	2.65	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.25	%	1.00	%	9.70	%		12/3/2024	9/3/2026			2,244,375		2,216,349		2,244,375	0.60	%
CIVC VI-A 829 Blocker, LLC Units		Equity									9/3/2021				250		250,000		783,881	0.21	%
Total																$	12,291,250	$	12,919,506	3.46	%
Carolinas Buyer, Inc.	(9)												Charlotte, NC
Term Loan	(4)(11)	First Lien	3M SOFR+	5.25	%	1.50	%	9.55	%		12/20/2024	12/20/2030	Beverage & Food	$	6,796,831		6,681,555		6,694,879	1.80	%
Carolinas Holdings, L.P. Class A Units		Equity									12/20/2024				466		465,637		434,981	0.12	%
Total																$	7,147,192	$	7,129,860	1.92	%
CEATI International Inc.	(7)(9)												Montreal, Canada
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	10.30	%		2/19/2021	12/31/2027	Services: Business	$	8,417,994		8,381,912		8,375,904	2.25	%
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	10.30	%		12/20/2024	12/31/2027			3,192,000		3,165,807		3,176,040	0.85	%
CEATI Holdings, LP Class A Units		Equity									2/19/2021				250,000		132,919		249,497	0.07	%
Total																$	11,680,638	$	11,801,441	3.17	%
Cerebro Buyer, LLC	(9)												Columbia, SC
Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	9.32	%		3/15/2023	3/15/2029	Healthcare & Pharmaceuticals	$	4,526,683		4,443,275		4,526,683	1.21	%
Cerebro Holdings Partnership, L.P. Series A Partner Interests		Equity									3/15/2023				62,961		62,961		74,030	0.02	%
Cerebro Holdings Partnership, L.P. Series B Partner Interests		Equity									3/15/2023				341,091		333,925		401,057	0.11	%
Total																$	4,840,161	$	5,001,770	1.34	%
CF Arch Holdings LLC													Houston, TX
Class A Units	(6)	Equity									8/10/2022		Services: Business		100,000		88,511		156,304	0.04	%
Total																$	88,511	$	156,304	0.04	%
CF512, Inc.	(9)												Blue Bell, PA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.00	%	1.00	%	10.51	%		9/1/2021	9/1/2026	Media: Advertising, Printing & Publishing	$	13,325,602		13,236,216		13,192,346	3.55	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	10.49	%		9/1/2021	9/1/2026			2,877,566		2,867,536		2,848,790	0.76	%
Revolver	(11)	First Lien	1M SOFR+	6.00	%	1.00	%	10.34	%		9/1/2021	9/1/2026			9,000		9,000		8,910	0.00	%
StellPen Holdings, LLC Membership Interests		Equity									9/1/2021				220,930		220,930		153,219	0.04	%
Total																$	16,333,682	$	16,203,265	4.35	%
Channel Partners Intermediateco, LLC													Tampa Bay, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	7.00	%	2.00	%	11.55	%		2/24/2022	2/7/2027	Retail	$	13,084,185		13,027,991		13,018,764	3.50	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	7.00	%	2.00	%	11.55	%		3/27/2023	2/7/2027			1,668,382		1,659,289		1,660,040	0.45	%
Revolver	(11)	First Lien	3M SOFR+	7.00	%	2.00	%	11.54	%		2/24/2022	2/7/2027			100,000		100,000		99,500	0.03	%
Total																$	14,787,280	$	14,778,304	3.98	%
CompleteCase, LLC	(9)												Seattle, WA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.95	%		12/21/2020	12/21/2025	Services: Consumer	$	6,561,535		6,538,372		6,561,535	1.76	%
CompleteCase Holdings, Inc. Class A Common Stock (SBIC II)	(5)	Equity									12/21/2020				417		5		-	0.00	%
CompleteCase Holdings, Inc. Series A Preferred Stock (SBIC II)	(5)	Equity									12/21/2020				522		521,734		184,786	0.05	%
CompleteCase Holdings, Inc. Class A Common Stock		Equity									4/27/2023				89		1		-	0.00	%
CompleteCase Holdings, Inc. Series C Preferred Stock		Equity									4/27/2023				111		111,408		111,409	0.03	%
Total																$	7,171,520	$	6,857,730	1.84	%
Compost 360 Acquisition, LLC	(9)												Tampa, FL
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.80	%		8/2/2023	8/2/2028	Environmental Industries	$	9,451,174		9,276,577		9,167,639	2.46	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.80	%		8/2/2023	8/2/2028			1,037,841		1,025,512		1,006,706	0.27	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.80	%		8/2/2023	8/2/2028			80,167		80,167		77,762	0.02	%
Compost 360 Investments, LLC Class A Units		Equity									8/2/2023				3,124		300,041		203,452	0.05	%
Total																$	10,682,297	$	10,455,559	2.80	%

7

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2025

(unaudited)

															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security(2)	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares(3)		Cost		Value(1)		Assets
COPILOT Provider Support Services, LLC	(9)													Maitland, FL
Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.95	%			11/22/2022	11/22/2027	Healthcare & Pharmaceuticals	$	4,875,000		4,816,160		4,850,625	1.30	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.95	%			11/22/2022	11/22/2027			28,333		28,333		28,191	0.01	%
QHP Project Captivate Blocker, Inc. Common Stock		Equity										11/22/2022				4		285,714		230,124	0.06	%
Total																	$	5,130,207	$	5,108,940	1.37	%
Craftable Intermediate II Inc.	(9)													Dallas, TX
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.50	%	10.05	%			6/30/2023	6/30/2028	High Tech Industries	$	9,957,669		9,814,897		9,957,669	2.67	%
Gauge Craftable LP Partnership Interests		Equity										6/30/2023				626,690		626,690		991,400	0.27	%
Total																	$	10,441,587	$	10,949,069	2.94	%
Curion Holdings, LLC	(9)													Chicago, IL
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.70	%	0.25	%	7/29/2022	7/29/2027	Services: Business	$	12,738,466		12,604,700		12,483,697	3.35	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.70	%	0.25	%	7/29/2022	7/29/2027			86,245		86,245		84,520	0.02	%
SP CS Holdings LLC Class A Units		Equity										7/29/2022				739,999		739,999		597,216	0.16	%
Total																	$	13,430,944	$	13,165,433	3.53	%
DTE Holding Company, LLC														Roselle, IL
Class A-2 Units		Equity										4/13/2018		Energy: Oil & Gas		776,316		466,204		-	0.00	%
Class AA Units		Equity										4/13/2018				723,684		723,684		-	0.00	%
Total																	$	1,189,888	$	-	0.00	%
EHI Buyer, Inc.														Grand Prarie, TX
EHI Group Holdings, L.P. Class A Units		Equity										7/31/2023		Environmental Industries		618		430,653		1,120,686	0.30	%
Total																	$	430,653	$	1,120,686	0.30	%
Elliott Aviation, LLC														Moline, IL
Term Loan	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	12.32	%	1/31/2020	12/31/2025	Aerospace & Defense	$	8,827,723		8,827,723		8,562,891	2.30	%
Term Loan		Unsecured		15.00	%	-	%	-	%	15.00	%	10/26/2023	12/31/2026			68,293		68,293		-	0.00	%
Revolver A	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	12.32	%	1/31/2020	12/31/2025			1,458,531		1,458,531		1,414,775	0.38	%
Revolver B	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	12.32	%	3/1/2023	12/31/2025			686,822		686,822		666,217	0.18	%
Revolver C (Priority)	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	12.32	%	3/7/2025	12/31/2025			937,784		937,784		937,784	0.25	%
SP EA Holdings LLC Class A Units		Equity										1/31/2020				1,048,896		901,489		-	0.00	%
Total																	$	12,880,642	$	11,581,667	3.11	%
Environmental Remedies, LLC	(9)													Hayward, CA
Term Loan	(11)	First Lien	3M SOFR+	5.25