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Consolidated Statements of Operations - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Investment Income        
Interest income $ 3,483,242 $ 4,105,800 $ 11,648,944 $ 8,525,024
Prepayment fee income 0 485,236 0 485,236
Dividend and other income 5,864 218,821 62,821 624,856
Revenues, Total 3,489,106 4,809,857 11,711,765 9,635,116
Operating expenses        
Base management fees 672,685 566,213 1,964,830 1,606,881
(Reversal of incentive fees) incentive fees on capital gains (1) [1] (68,486) (90,614) (102,160) 167,393
Operating expense reimbursement to Adviser 329,885 255,947 946,934 896,524
(Reversal of) Servicing fees (361,611) 125,197 (121,504) 380,562
Interest expense on unsecured notes payable 768,500 733,611 2,299,538 1,940,490
Professional fees 550,367 343,576 1,139,775 981,896
Interest expense from obligations under participation agreements 171,740 1,186,970 433,622 1,427,185
Interest expense on term loan 419,516 99,778 1,101,797 161,069
Directors’ fees 27,126 26,147 84,378 86,397
Insurance expense 61,571 61,949 190,293 179,775
Transaction costs 313,882 0 1,459,762 0
General and administrative expenses 54,051 6,948 76,625 105,421
Total Operating Expenses 2,939,226 3,315,722 9,473,890 7,933,593
Net investment income before income taxes 549,880 1,494,135 2,237,875 1,701,523
Income tax expense 109,129 114,635 605,787 114,635
Net investment income 440,751 1,379,500 1,632,088 1,586,888
Net change in unrealized (depreciation) appreciation on investments (3,193,123) (720,210) (3,444,211) 390,245
Net change in unrealized appreciation or depreciation on obligations under participation agreements 15,188 0 42,128 8,408
Net realized gain on investments 0 95,966 55,783 267,140
Net (decrease) increase in net assets resulting from operations $ (2,737,184) $ 755,256 $ (1,714,212) $ 2,252,681
Net investment income per share $ 0.05 $ 0.16 $ 0.20 $ 0.19
Net (decrease) increase in net assets resulting from operations per share $ (0.34) $ 0.09 $ (0.21) $ 0.27
Weighted average common shares outstanding 8,133,695 8,454,068 8,110,351 8,430,186
Obligations Under Participation Agreements        
Operating expenses        
Net change in unrealized appreciation or depreciation on obligations under participation agreements     $ (42,128) $ (8,408)
Loans held for investment, net        
Operating expenses        
Net change in unrealized (depreciation) appreciation on investments $ (3,193,123) $ (720,210) $ (3,444,211) $ 390,245
[1] For the three and nine months ended September 30, 2022, Terra Income Fund 6, Inc. (“Terra BDC”) reversed previously accrued incentive fees on capital gains of $68,486 and $102,160, respectively. Terra BDC also reversed previously accrued incentive fees on capital gains of $90,614 for the three months ended September 30, 2021. Incentive fees on capital gains were based on 20% of net realized and unrealized capital gains. No incentive fees on capital gains were actually payable by Terra BDC with respect to unrealized gains unless and until those gains were realized.