Tax Matters

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Tax Matters

Tax Matters

The Company is subject to the U.S. federal income tax rules and filing requirements. The Company has elected to be

treated, and intends to qualify annually thereafter, as a RIC under Subchapter M of the Code. As a result, the Company

generally does not expect to be subject to U.S. federal income taxes on its RIC operations. However, there is no guarantee

that the Company will qualify to make such an election for any taxable year.

The Company has not recorded a liability for any uncertain tax positions pursuant to the provisions of ASC 740, Income

Taxes, as of June 30, 2025 and December 31, 2024.

In the normal course of business, the Company is subject to examination by federal and certain state and local tax

regulators. The Company adopted a tax year-end of December 31. It is the Company’s policy to recognize accrued interest

and penalties, if any, related to unrecognized tax benefits as a component of provision for income taxes.

The Company's taxable income for each period is an estimate and will not be finally determined until the Company files its

tax return for each year. Therefore, the final taxable income earned in each period and carried forward for distribution in

the following period may be different than this estimate.

As of June 30, 2025, the company did not have a capital loss carryforward.

For U.S. federal income tax purposes, distributions paid to stockholders are reported as ordinary income, return of capital,

long term capital gains or a combination thereof. The tax character of distributions paid for the six months ended June 30,

2025 and for the year ended December 31, 2024, were as follows:

	For the six months ended June 30, 2025	For the year ended December 31, 2024
Ordinary Income	$16,896	$28,526
Long-term Capital Gain	$—	$—
Return of Capital	$—	$—

As of June 30, 2025 and December 31, 2024, the tax cost and estimated gross unrealized appreciation/(depreciation) from

investments for federal income tax purposes are as follows.

	June 30, 2025	December 31, 2024
Tax cost	$729,603	$556,863
Gross unrealized appreciation	$6,361	$3,473
Gross unrealized depreciation	(3,749)	(3,249)
Net unrealized investment appreciation / (depreciation)  on investments	$2,612	$224

The Company has a wholly-owned corporate subsidiary that is consolidated for financial statement purposes. This entity

("taxable subsidiary"); LS BDC Holdings, LLC; has elected to be taxed as regular c-corporation for federal income tax

purposes. This taxable subsidiary recognizes deferred tax assets and liabilities for the estimated future tax effects

attributable to temporary differences between the tax basis of certain assets and liabilities and the reported amounts

included in the accompanying consolidated balance sheet using the applicable statutory tax rates in effect for the year in

which any such temporary differences are expected to reverse.

Total income tax (expense) benefit for the Company differs from the amount computed by applying the federal statutory

income tax rate of 21% to net increase (decrease) in net assets from operations for the period January 1, 2025 through

June 30, 2025, as follows:

	Period ended ended June 30, 2025
Income tax (expense)/benefit at federal statutory tax rate	$(4,253)
Income attributable to the RIC and not subject to corporate tax	3,704
State and local income tax benefit (net of federal detriment)	(118)
Prior year net operating loss carryforward	—
Prior year provision to return adjustments	—
Other	(1)
Permanent differences	—
Change in Valuation Allowance	(2)
Total income tax (expense)/benefits	$(670)

At June 30, 2025, the taxable subsidiaries did not have any capital loss carryforwards.

Net operating loss carryforwards are available to offset future taxable income. These net operating loss carryforwards can

be carried forward indefinitely and may offset up to 80% of taxable income in any given year. Any unused portion will

continue to be carried forward. As of June 30, 2025, the Company had a net operating loss carryforward for federal income

tax purposes of $425. 

At June 30, 2025, the Company determined a partial valuation allowance of the Company's gross deferred tax asset was

required.  The Company’s assessment considered, among other matters, the nature, frequency and severity of current and

cumulative losses, the duration of statutory carryforward periods and the associated risk that operating loss and capital loss

carryforwards are limited or are likely to expire unused, and unrealized gains and losses on investments.  Through the

consideration of these factors, the Company has determined that it is more likely than not that the Company’s net deferred

tax asset would not be realized in full.  As a result, the Company recorded a partial valuation allowance with respect to its

gross deferred tax asset for the quarter ended June 30, 2025. From time to time, the Company may modify its estimates or

assumptions regarding its deferred tax liability and/or asset balances and any applicable valuation allowance as new

information becomes available.  Modifications to the Company’s estimates or assumptions regarding its deferred tax

liability and/or asset balances and any applicable valuation allowance, changes in generally accepted accounting principles

or related guidance or interpretations thereof, limitations imposed on or expirations of the Company’s net operating losses

and capital loss carryovers (if any) and changes in applicable tax law could result in increases or decreases in the

Company’s NAV per share, which could be material.