INCOME TAXES (Tables)

6 Months Ended

Sep. 30, 2022

Schedule of Net Assets Resulting from Operations to Estimated RIC Taxable Income

The following reconciles net increase in net assets resulting from operations to estimated RIC taxable income for the six months ended September 30, 2022 and 2021:


	Six Months Ended September 30,
Reconciliation of RIC Distributable Income1	2022		2021
Net increase in net assets from operations	$	11,968	$	10,586
Net unrealized depreciation (appreciation) on investments	8,599		(6,360)
Income/gain (expense/loss) recognized for tax on pass-through entities	35		526
(Gain) loss recognized on dispositions	(159)		152
Capital loss carryover2	6,622		—
Net operating income - wholly-owned subsidiary	(1,568)		(3,684)
Dividend income from wholly-owned subsidiary	745		—
Non-deductible tax expense	251		32
Loss on extinguishment of debt	—		13,632
Non-deductible compensation	1,644		1,767
Compensation related book/tax differences	(3,583)		2,042
Other book/tax differences	1,434		2,306
Estimated distributable income before deductions for distributions	$	25,988	$	20,999

1The calculation of taxable income for each period is an estimate and will not be finally determined until the Company files its tax return each year. Final taxable income may be different than this estimate.

2At September 30, 2022, the Company had long-term capital loss carryforwards of $23.8 million to offset future capital gains. These capital loss carryforwards are not subject to expiration.

Schedule of Deferred Tax Assets and Liabilities

The following table sets forth the significant components of the deferred tax assets and liabilities as of September 30, 2022 and March 31, 2022 (amounts in thousands):


	September 30, 2022		March 31, 2022
Deferred tax asset:
Net operating loss carryforwards	$	—	$	—
Interest	210		185
Total deferred tax asset	210		185
Deferred tax liabilities:
Net unrealized appreciation on investments	(7,475)		(4,899)
Net basis differences in portfolio investments	(1,533)		(1,033)
Total deferred tax liabilities	(9,008)		(5,932)
Total net deferred tax (liabilities) assets	$	(8,798)	$	(5,747)