Income Taxes

9 Months Ended

Sep. 30, 2024

Income Taxes [Abstract]

Income Taxes

Note 8. Income Taxes

The amount of taxable income to be paid out as a distribution is determined by the Board each quarter and generally is based upon the annual earnings estimated by management of the Company. Net capital gains, if any, are distributed at least annually, although the Company may decide to retain all or some of those capital gains for investment and pay corporate-level income taxes on those retained amounts. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. In the event the Company’s taxable income (including any net capital gains) for a fiscal year fall below the amount of distributions declared and paid with respect to that year, however, a portion of the total amount of those distributions may be deemed a return of capital for tax purposes to the Company’s stockholders.

Because federal income tax regulations differ from accounting principles generally accepted in the United States, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the consolidated financial statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

The calculation of reclassifications due to permanent book-to-tax differences and tax character of distributions declared are performed at each calendar year end and have no impact on net assets.

For the year ended December 31, 2023 no permanent differences were reclassified for tax purposes.

For income tax purposes, distributions paid to Stockholders are reported as ordinary income, return of capital, redemption, long term capital gains or a combination thereof. The following table provides the tax character of distributions declared for the year ended December 31, 2023:

	For the year ended December 31, 2023
Ordinary income	$	22,097,019
Long-term capital gains		3,773
Total	$	22,100,792

The following table sets forth the tax cost basis and the estimated aggregate gross unrealized appreciation and depreciation from investments for federal income tax purposes as of and for the period ended September 30, 2024 and December 31, 2023:

	As of September 30, 2024		As of December 31, 2023
Tax Cost of Investment	$	357,431,797	$	378,551,985

	As of September 30, 2024			As of December 31, 2023
Unrealized appreciation	$	21,519,150		$	20,541,825
Unrealized depreciation		(33,469,663	)		(22,100,838	)
Net unrealized appreciation/(depreciation) from investments	$	(11,950,513	)	$	(1,559,013	)