INCOME TAXES (Tables)

6 Months Ended

Sep. 30, 2023

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, 2023 and 2022:


	Six Months Ended September 30,
Reconciliation of RIC Distributable Income1	2023		2022
Net increase in net assets from operations	$	46,436	$	11,968
Net unrealized (appreciation) depreciation on investments	(7,439)		8,599
(Expense/loss) income/gain recognized for tax on pass-through entities	(4,184)		35
(Gain) loss recognized on dispositions	(1,641)		(159)
Capital loss carryover2	16,733		6,622
Net operating income - wholly-owned subsidiary	(2,990)		(1,568)
Dividend income from wholly-owned subsidiary	—		745
Non-deductible tax expense	252		251
Loss on extinguishment of debt	(1,363)		(1,363)
Non-deductible compensation	1,785		1,644
Compensation related book/tax differences	(3,851)		(3,583)
Interest on non-accrual loans	2,999		1,992
Other book/tax differences	2,525		805
Estimated distributable income before deductions for distributions	$	49,262	$	25,988

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, 2023, the Company had long-term capital loss carryforwards of $46.9 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, 2023 and March 31, 2023 (amounts in thousands):


	September 30, 2023		March 31, 2023
Deferred tax asset:
Net operating loss carryforwards	$	159	$	—
Interest	966		219
Total deferred tax asset	1,125		219
Deferred tax liabilities:
Net unrealized appreciation on investments	(10,350)		(11,413)
Net basis differences in portfolio investments	(1,133)		(923)
Total deferred tax liabilities	(11,483)		(12,336)
Total net deferred tax (liabilities) assets	$	(10,358)	$	(12,117)