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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 11/09/23 Silver Spike Investment Corp. 10-Q 9/30/23 61:6.9M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.82M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 22K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 22K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 18K 5: EX-32.2 Certification -- §906 - SOA'02 HTML 18K 11: R1 Document and Entity Information HTML 72K 12: R2 Statements of Assets and Liabilities HTML 111K 13: R3 Statements of Assets and Liabilities HTML 37K (Parenthetical) 14: R4 Statements of Operations HTML 106K 15: R5 Statements of Changes in Net Assets HTML 107K 16: R6 Statements of Changes in Net Assets HTML 19K (Parenthetical) 17: R7 Statements of Cash Flows HTML 95K 18: R8 Schedule of Investments HTML 147K 19: R9 Schedule of Investments (Parenthetical) HTML 83K 20: R10 Organization HTML 24K 21: R11 Significant Accounting Policies HTML 50K 22: R12 Investments HTML 98K 23: R13 Fair Value of Financial Instruments HTML 106K 24: R14 Related Party Transactions HTML 32K 25: R15 Commitments and Contingencies HTML 21K 26: R16 Common Stock HTML 39K 27: R17 Indemnification HTML 19K 28: R18 Earnings Per Share HTML 30K 29: R19 Income Taxes HTML 45K 30: R20 Financial Highlights HTML 53K 31: R21 Subsequent Events HTML 20K 32: R22 Significant Accounting Policies (Policies) HTML 76K 33: R23 Investments (Tables) HTML 90K 34: R24 Fair Value of Financial Instruments (Tables) HTML 107K 35: R25 Common Stock (Tables) HTML 31K 36: R26 Earnings Per Share (Tables) HTML 30K 37: R27 Income Taxes (Tables) HTML 39K 38: R28 Financial Highlights (Tables) HTML 51K 39: R29 Organization (Details) HTML 31K 40: R30 SIGNIFICANT ACCOUNTING POLICIES, Cash and Cash HTML 22K Equivalents (Details) 41: R31 SIGNIFICANT ACCOUNTING POLICIES, Interest and HTML 24K Dividend Income (Details) 42: R32 SIGNIFICANT ACCOUNTING POLICIES, Fee Income HTML 19K (Details) 43: R33 SIGNIFICANT ACCOUNTING POLICIES, Income Taxes HTML 32K (Details) 44: R34 SIGNIFICANT ACCOUNTING POLICIES, Organization HTML 25K Expenses and Offering Costs (Details) 45: R35 Investments (Details) HTML 76K 46: R36 FAIR VALUE OF FINANCIAL INSTRUMENTS, Investments HTML 49K Measured at Fair Value (Details) 47: R37 FAIR VALUE OF FINANCIAL INSTRUMENTS, Significant HTML 57K Unobservable Inputs used in Fair Value Measurement Level 3 Portfolio Investments (Details) 48: R38 FAIR VALUE OF FINANCIAL INSTRUMENTS, Summary of HTML 48K Changes in Fair Value of Level 3 Portfolio Investments (Details) 49: R39 Related Party Transactions (Details) HTML 70K 50: R40 Commitments and Contingencies (Details) HTML 21K 51: R41 COMMON STOCK, Initial Public Offering and HTML 63K Distributions (Details) 52: R42 COMMON STOCK, Distribution Reinvestment Plan HTML 34K (Details) 53: R43 Earnings Per Share (Details) HTML 40K 54: R44 Income Taxes (Details) HTML 53K 55: R45 Financial Highlights (Details) HTML 59K 56: R46 Subsequent Events (Details) HTML 27K 59: XML IDEA XML File -- Filing Summary XML 103K 57: XML XBRL Instance -- ef20012455_10q_htm XML 1.77M 58: EXCEL IDEA Workbook of Financial Report Info XLSX 125K 7: EX-101.CAL XBRL Calculations -- ssic-20230930_cal XML 129K 8: EX-101.DEF XBRL Definitions -- ssic-20230930_def XML 540K 9: EX-101.LAB XBRL Labels -- ssic-20230930_lab XML 1.25M 10: EX-101.PRE XBRL Presentations -- ssic-20230930_pre XML 771K 6: EX-101.SCH XBRL Schema -- ssic-20230930 XSD 150K 60: JSON XBRL Instance as JSON Data -- MetaLinks 346± 496K 61: ZIP XBRL Zipped Folder -- 0001140361-23-052491-xbrl Zip 319K
i ☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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i ☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i Maryland
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i 86-2872887
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|
(State or other jurisdiction of
incorporation or organization)
|
(IRS Employer Identification No.) |
|
|
|
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i 600 Madison Avenue, Suite 1800
|
||
i New York, i NY
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||
i 10022
|
||
(Address of principal executive offices)
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(Zip Code)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
i Common Stock, par value $0.01 per share
|
i SSIC
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i The NASDAQ Stock Market LLC |
Large accelerated filer
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☐
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Accelerated filer
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☐
|
|
i Non-accelerated filer
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☒
|
Smaller reporting company
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i ☐
|
|
Emerging growth company
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i ☒
|
|
||
PAGE
|
||
NO.
|
||
PART I
|
FINANCIAL INFORMATION
|
|
Item 1
|
4
|
|
4
|
||
5
|
||
6
|
||
8
|
||
9
|
||
11
|
||
Item 2
|
24
|
|
Item 3
|
34
|
|
Item 4
|
35
|
|
PART II
|
OTHER INFORMATION
|
|
Item 1
|
36
|
|
Item 1A
|
36
|
|
Item 2
|
36
|
|
Item 3
|
36
|
|
Item 4
|
36
|
|
Item 5
|
36
|
|
Item 6
|
36
|
|
37
|
•
|
our future operating results and distribution projections;
|
•
|
the ability of Silver Spike Capital, LLC (“SSC”) to attract and retain highly talented professionals;
|
•
|
our business prospects and the prospects of our portfolio companies;
|
•
|
the impact of interest and inflation rates on our business prospects and the prospects of our portfolio companies;
|
•
|
the impact of the investments that we expect to make;
|
•
|
the ability of our portfolio companies to achieve their objectives;
|
•
|
our expected financings and investments and the timing of our investments in our initial portfolio;
|
•
|
changes in regulation impacting the cannabis industry;
|
•
|
the adequacy of our cash resources and working capital;
|
•
|
the current and future effects of the COVID-19 pandemic on us and our portfolio companies; and
|
•
|
the timing of cash flows, if any, from the operations of our portfolio companies.
|
•
|
our limited operating history;
|
•
|
changes or potential disruptions in our operations, the economy, financial markets or political environment;
|
•
|
risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters or the COVID-19 pandemic;
|
•
|
future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business
development companies (“BDCs”) or regulated investment companies (“RICs”); and
|
•
|
other considerations that may be disclosed from time to time in our publicly disseminated documents and filings.
|
|
September 30, 2023 | |||||||
|
(unaudited)
|
|||||||
ASSETS
|
||||||||
Investments at fair value:
|
||||||||
Non-control/non-affiliate investments at fair value (amortized cost of $ i 57,488,336
and $ i 50,527,898, respectively)
|
$
|
i 57,381,000
|
$
|
i 50,254,550
|
||||
Cash and cash equivalents
|
i 29,820,936
|
i 35,125,320
|
||||||
Interest receivable
|
i 1,829,675
|
i 1,559,081
|
||||||
Prepaid expenses
|
i 103,838
|
i 32,323
|
||||||
Other assets | i 50,000 | i - | ||||||
Total assets
|
$
|
i 89,185,449
|
$
|
i 86,971,274
|
||||
|
||||||||
LIABILITIES
|
||||||||
Income-based incentive fees payable
|
$ | i 1,051,741 | $ | i - | ||||
Management fee payable
|
i 264,565 | i 170,965 | ||||||
Legal fees payable |
i 150,667 | i 42,215 | ||||||
Valuation fees payables
|
i 94,130 | i - | ||||||
Administrator fees payable
|
i 81,954 | i 57,306 | ||||||
Audit fees payable
|
i 75,165 | i 50,000 | ||||||
Director’s fee payable
|
i 34,768 | i 32,049 | ||||||
Professional fees payable
|
i 18,065 | i 28,744 | ||||||
Other payables |
i 10,923 | i 33,663 | ||||||
Distributions payable |
i 321 | i - | ||||||
Due to affiliate
|
i 298
|
i 37 | ||||||
Excise tax payable
|
i -
|
i 80,566 | ||||||
Total liabilities
|
$
|
i 1,782,597
|
$
|
i 495,545
|
||||
|
||||||||
Commitments and contingencies (Note 6)
|
- |
- |
||||||
|
||||||||
NET ASSETS
|
||||||||
Common Stock, $ i i 0.01 /
par value, i i 100,000,000 / shares authorized, i i 6,214,705 /
and
i i 6,214,672 / shares issued and outstanding, respectively
|
$
|
i 62,147
|
$
|
i 62,147
|
||||
Additional paid-in-capital
|
i 85,039,208
|
i 84,917,788
|
||||||
Distributable earnings/(Accumulated losses)
|
i 2,301,497
|
i 1,495,794
|
||||||
Total net assets
|
$
|
i 87,402,852
|
$
|
i 86,475,729
|
||||
NET ASSET VALUE PER SHARE
|
$
|
i 14.06
|
$
|
i 13.91
|
|
Three Months Ended
|
Nine Months Ended |
||||||||||||||
|
September 30, 2023 | September 30, 2022 | ||||||||||||||
INVESTMENT INCOME
|
||||||||||||||||
Non-control/non-affiliate investment income
|
||||||||||||||||
Interest income
|
$
|
i 2,885,725
|
$
|
i 1,180,517
|
$ | i 8,106,013 | $ | i 1,590,181 | ||||||||
Fee income
|
i 31,250
|
i -
|
i 162,500 | i 410,000 | ||||||||||||
Total investment income
|
i 2,916,975
|
i 1,180,517
|
i 8,268,513 | i 2,000,181 | ||||||||||||
|
||||||||||||||||
EXPENSES
|
||||||||||||||||
Income-based incentive fees
|
i 405,247
|
i -
|
i 1,051,741 | i - | ||||||||||||
Management fee
|
i 264,565 | i 110,426 | i 760,473 | i 165,467 | ||||||||||||
Audit expenses
|
i 223,982 | i 81,917 | i 409,365 |
i 175,667 |
||||||||||||
Legal expense
|
i 148,292
|
i 167,497
|
i 334,308 | i 424,548 | ||||||||||||
Administrator fees
|
i 84,617
|
i 65,035
|
i 250,314 | i 174,732 | ||||||||||||
Insurance expense
|
i 67,122
|
i 76,373
|
i 202,597 | i 198,403 | ||||||||||||
Director expenses
|
i 38,223
|
i 32,049
|
i 105,913 | i 67,796 | ||||||||||||
Valuation fees
|
i 22,890 | i - | i 116,955 | i - | ||||||||||||
Professional fees
|
i 15,841
|
i 39,903
|
i 51,808 | i 80,788 | ||||||||||||
Custodian fees
|
i 12,000
|
i 12,000
|
i 36,000 | i 36,000 | ||||||||||||
Organizational expenses
|
i -
|
i -
|
i - | i 34,168 | ||||||||||||
Capital gains incentive fees
|
( i 5,000 | ) | i - | i - | i - | |||||||||||
Other expenses
|
i 22,210
|
i 44,902
|
i 61,918 | i 86,483 | ||||||||||||
Total expenses
|
i 1,299,989
|
i 630,102
|
i 3,381,392 | i 1,444,052 | ||||||||||||
|
||||||||||||||||
NET INVESTMENT INCOME (LOSS)
|
i 1,616,986
|
i 550,415
|
i 4,887,121 | i 556,129 | ||||||||||||
|
||||||||||||||||
NET REALIZED GAIN (LOSS) FROM INVESTMENTS
|
||||||||||||||||
Non-controlled/non-affiliate investments
|
i - | i - | ( i 210,767 | ) | i - | |||||||||||
Net realized gain (loss) from investments
|
i -
|
i -
|
( i 210,767 | ) | i - | |||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS
|
||||||||||||||||
Non-controlled/non-affiliate investments
|
( i 343,104
|
)
|
i 9,508
|
i 166,012 | i - | |||||||||||
Net change in unrealized appreciation (depreciation) from investments
|
( i 343,104
|
)
|
i 9,508
|
i 166,012 | i - | |||||||||||
Net realized and unrealized gains (losses) |
( i 343,104 | ) | i 9,508 | ( i 44,755 | ) | i - | ||||||||||
|
||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$
|
i 1,273,882
|
$
|
i 559,923
|
$ | i 4,842,366 | $ | i 556,129 | ||||||||
|
||||||||||||||||
NET INVESTMENT INCOME (LOSS) PER SHARE — BASIC AND DILUTED
|
$
|
i i 0.26 /
|
$
|
i i 0.09 /
|
$ | i i 0.79 / | $ | i i 0.10 / | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE — BASIC AND DILUTED
|
$
|
i i 0.20 /
|
$
|
i i 0.09 /
|
$ | i i 0.78 / | $ | i i 0.10 / | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING — BASIC AND DILUTED
|
i i 6,214,673 /
|
i i 6,214,672 /
|
i i 6,214,672 / | i i 5,338,691 / |
|
Common Stock
|
|||||||||||||||||||
Three Months Ended
|
Shares
|
Par Value
|
Additional
paid-in-capital |
Distributable Earnings/
(Accumulated Loss)
|
Total
net assets
|
|||||||||||||||
Balance, June 30, 2023
|
i 6,214,672
|
$
|
i 62,147
|
$
|
i 85,038,887
|
$
|
i 4,943,179
|
$
|
i 90,044,213
|
|||||||||||
Net increase (decrease) in net assets resulting from operations
|
||||||||||||||||||||
Net investment income (loss)
|
-
|
i -
|
i -
|
i 1,616,986
|
i 1,616,986
|
|||||||||||||||
Net realized gain (loss) from investments
|
-
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) from investments
|
-
|
i -
|
i -
|
( i 343,104
|
)
|
( i 343,104
|
)
|
|||||||||||||
Total net increase (decrease) in net assets resulting from operations
|
-
|
i -
|
i -
|
i 1,273,882
|
i 1,273,882
|
|||||||||||||||
Distributions to stockholders from: |
||||||||||||||||||||
Investment income-net
|
- | i - | i - | ( i 3,915,564 | ) | ( i 3,915,564 | ) | |||||||||||||
Capital transactions
|
||||||||||||||||||||
Issuance of common stock
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Reinvestment of stockholder distributions
|
i 33 | i - | i 321 | i - | i 321 | |||||||||||||||
Total net increase (decrease) in net assets from capital transactions
|
i 33 | i - | i 321 | i - | i 321 | |||||||||||||||
Total increase (decrease) in net assets | i 33 | i - | i 321 | ( i 2,641,682 | ) | ( i 2,641,361 | ) | |||||||||||||
Effect of permanent adjustments |
- | i - | i - | i - | i - | |||||||||||||||
Balance, September 30, 2023
|
i 6,214,705
|
$
|
i 62,147
|
$
|
i 85,039,208
|
$
|
i 2,301,497
|
$
|
i 87,402,852
|
Common Stock
|
||||||||||||||||||||
Three Months Ended
|
Shares
|
Par value
|
Additional
paid-in-capital |
Distributable Earnings/
(Accumulated Loss) |
Total
net assets
|
|||||||||||||||
Balance, June 30, 2022
|
i 6,214,672
|
$
|
i 62,147
|
$
|
i 84,917,788
|
$
|
( i 216,108
|
)
|
$
|
i 84,763,827
|
||||||||||
Net increase (decrease) in net assets resulting from operations
|
||||||||||||||||||||
Net investment income (loss)
|
-
|
i -
|
i -
|
i 550,415
|
i 550,415
|
|||||||||||||||
Net realized gain (loss) from investments
|
-
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) from investments
|
-
|
i -
|
i -
|
i 9,508
|
i 9,508
|
|||||||||||||||
Total net increase (decrease) in net assets resulting from operations
|
-
|
i -
|
i -
|
i 559,923
|
i 559,923
|
|||||||||||||||
Capital transactions
|
||||||||||||||||||||
Issuance of common stock, net of offering cost
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Total increase (decrease) in net assets
|
i -
|
i -
|
i -
|
i 559,923
|
i 559,923
|
|||||||||||||||
Effect of permanent adjustments
|
-
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Balance, September 30, 2022
|
i 6,214,672
|
$
|
i 62,147
|
$
|
i 84,917,788
|
$
|
i 343,815
|
$
|
i 85,323,750
|
|
Common Stock
|
|||||||||||||||||||
Nine Months Ended
|
Shares
|
Par Value
|
Additional
paid-in-capital |
Distributable Earnings/
(Accumulated Loss)
|
Total
net assets
|
|||||||||||||||
Balance, December 31, 2022
|
i 6,214,672
|
$
|
i 62,147
|
$
|
i 84,917,788
|
$
|
i 1,495,794
|
$
|
i 86,475,729
|
|||||||||||
Net increase (decrease) in net assets resulting from operations
|
||||||||||||||||||||
Net investment income (loss)
|
-
|
i -
|
i -
|
i 4,887,121
|
i 4,887,121
|
|||||||||||||||
Net realized gain (loss) from investments
|
-
|
i -
|
i -
|
( i 210,767
|
)
|
( i 210,767
|
)
|
|||||||||||||
Net change in unrealized appreciation (depreciation) from investments
|
-
|
i -
|
i -
|
i 166,012
|
i 166,012
|
|||||||||||||||
Total net increase (decrease) in net assets resulting from operations
|
-
|
i -
|
i -
|
i 4,842,366
|
i 4,842,366
|
|||||||||||||||
Distributions to stockholders from:
|
||||||||||||||||||||
Investment income-net
|
- | i - | i - | ( i 3,915,564 | ) | ( i 3,915,564 | ) | |||||||||||||
Capital transactions
|
||||||||||||||||||||
Issuance of common stock
|
i -
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Reinvestment of stockholder distributions
|
i 33 | i - | i 321 | i - | i 321 | |||||||||||||||
Total net increase (decrease) in net assets from capital transactions
|
i 33 | i - | i 321 | i - | i 321 | |||||||||||||||
Total increase (decrease) in net assets | i 33 | i - | i 321 | i 926,802 | i 927,123 | |||||||||||||||
Effect of permanent adjustments |
- | i - | i 121,099 | ( i 121,099 | ) | i - | ||||||||||||||
Balance, September 30, 2023
|
i 6,214,705
|
$
|
i 62,147
|
$
|
i 85,039,208
|
$
|
i 2,301,497
|
$
|
i 87,402,852
|
Common Stock
|
||||||||||||||||||||
Nine Months Ended
|
Shares
|
Par value
|
Additional
paid-in-capital |
Distributable Earnings/
(Accumulated Loss)
|
Total
net assets
|
|||||||||||||||
Balance, December 31, 2021
|
i 386
|
$
|
i 4
|
$
|
i 5,396
|
$
|
( i 507,549
|
)
|
$
|
( i 502,149
|
)
|
|||||||||
Net increase (decrease) in net assets resulting from operations
|
||||||||||||||||||||
Net investment income (loss)
|
-
|
i -
|
i -
|
i 556,129
|
i 556,129
|
|||||||||||||||
Net realized gain (loss) from investments
|
-
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) from investments
|
-
|
i -
|
i -
|
i -
|
i -
|
|||||||||||||||
Total net increase (decrease) in net assets resulting from operations
|
-
|
i -
|
i -
|
i 556,129
|
i 556,129
|
|||||||||||||||
Capital transactions
|
||||||||||||||||||||
Issuance of common stock, net of offering costs of $ i 1,609,184
|
i 6,214,286
|
i 62,143
|
i 85,207,627
|
i -
|
i 85,269,770
|
|||||||||||||||
Total increase (decrease) in net assets
|
i 6,214,286
|
i 62,143
|
i 85,207,627
|
i 556,129
|
i 85,825,899
|
|||||||||||||||
Effect of permanent adjustments
|
-
|
i -
|
( i 295,235
|
)
|
i 295,235
|
i -
|
||||||||||||||
Balance, September 30, 2022
|
i 6,214,672
|
$
|
i 62,147
|
$
|
i 84,917,788
|
$
|
i 343,815
|
$
|
i 85,323,750
|
|
For the nine months ended
|
|||||||
|
||||||||
Cash flows from operating activities
|
||||||||
Net increase (decrease) in net assets resulting from operations
|
$
|
i 4,842,366
|
$
|
i 556,129
|
||||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
|
||||||||
Net realized (gain) loss from investments
|
i 210,767 | i - | ||||||
Net change in unrealized (appreciation) depreciation from investments
|
( i 166,012
|
)
|
i -
|
|||||
Net (accretion of discounts) and amortization of premiums
|
( i 431,052
|
)
|
( i 49,966
|
)
|
||||
Purchase of investments
|
( i 8,442,000
|
)
|
( i 24,417,500
|
)
|
||||
PIK interest capitalized
|
( i 78,153 | ) | i - | |||||
Proceeds from sales of investments and principal repayments
|
i 1,780,000 | i - | ||||||
(Increase)/Decrease in operating assets:
|
||||||||
Interest receivable
|
( i 270,594
|
)
|
( i 252,547
|
)
|
||||
Other assets
|
( i 50,000 | ) | i - | |||||
Prepaid expenses
|
( i 71,515
|
)
|
( i 119,787
|
)
|
||||
Deferred offering costs
|
i - |
i 1,395,059
|
||||||
Increase/(Decrease) in operating liabilities:
|
||||||||
Income-based incentive fees payable
|
i 1,051,741
|
i -
|
||||||
Management fee payable
|
i 93,600 |
i 110,426 | ||||||
Legal fees payable
|
i 108,452 | i 155,139 | ||||||
Valuation fees payable
|
i 94,130
|
i 83,083
|
||||||
Administrator fees payable
|
i 24,648
|
i 73,908
|
||||||
Audit fees payable
|
i 25,165
|
i - |
||||||
Director’s fee payable
|
i 2,719
|
i 32,049
|
||||||
Professional fees payable
|
( i 10,679
|
)
|
i 50,185
|
|||||
Other payable
|
( i 22,740
|
)
|
i 2,238
|
|||||
Due to affiliate
|
i 261
|
( i 383,207 | ) | |||||
Excise tax payable
|
( i 80,566 | ) |
i -
|
|||||
Offering cost payable
|
i - |
( i 1,024,256
|
)
|
|||||
Organization costs payable
|
i -
|
( i 430,276
|
)
|
|||||
Net cash provided by (used in) operating activities
|
( i 1,389,462
|
)
|
( i 24,219,323
|
)
|
||||
|
||||||||
Cash flows from financing activities
|
||||||||
Issuance of common stock, net of offering cost
|
i -
|
i 85,269,770
|
||||||
Distributions paid
|
( i 3,914,922 | ) | i - | |||||
Net cash provided by (used in) financing activities
|
( i 3,914,922
|
)
|
i 85,269,770
|
|||||
|
||||||||
Net increase (decrease) in cash & cash equivalents
|
( i 5,304,384
|
)
|
i 61,050,447
|
|||||
Cash & cash equivalents, beginning of period
|
i 35,125,320
|
i 5,400
|
||||||
Cash & cash equivalents, end of period
|
$
|
i 29,820,936
|
$
|
i 61,055,847
|
||||
Supplemental and non-cash financing activities |
||||||||
Reinvestment of dividend distributions |
$ | i 321 | $ | i - |
Portfolio Company (1)
|
Type of
Investment (2)
|
Investment
Date (3)
|
Maturity Date
|
Interest Rate (4)
|
Fair Value
Hierarchy (5)
|
Geographic
Region (6) |
Non-Qualifying
Asset (7)
|
Principal
Amount (8)
|
Amortized Cost
|
Fair
Value (9)
|
% of Net
Assets
|
|||||||||||||||
Debt Securities - United States
|
||||||||||||||||||||||||||
Wholesale Trade (10)
|
||||||||||||||||||||||||||
Curaleaf Holdings, Inc.
|
Senior Secured Note
|
i 10/11/2022
|
i 12/15/2026
|
Fixed interest rate i 8.0%
|
3
|
Northeast
|
Yes
|
$ |
i 4,500
|
$ |
i 3,954
|
$ |
i 4,017
|
i 4.60
|
%
|
|||||||||||
Dreamfields Brands, Inc. (d/b/a Jeeter)
|
Senior Secured First Lien Term Loan
|
i 5/3/2023
|
i 5/3/2026 |
Variable interest rate PRIME(11) + i 8.75% ( i 7.5%
PRIME Floor) |
3 |
West |
No |
i 4,320
|
i 4,223 | i 4,191 | i 4.80 | |||||||||||||||
MariMed Inc.
|
Senior Secured First Lien Term Loan
|
i 1/24/2023
|
i 1/24/2026
|
Variable interest rate PRIME(11) + i 5.75% Cash
( i 6.25% PRIME Floor) i 1.40% PIK |
3
|
Northeast
|
No
|
i 4,363
|
i 4,121
|
i 4,113
|
i 4.71
|
|||||||||||||||
PharmaCann, Inc.
|
Senior Secured Note
|
i 6/30/2022
|
i 6/30/2025
|
Fixed interest rate i 12.0%
|
3
|
Midwest
|
No
|
i 4,250
|
i 4,089
|
i 3,868
|
i 4.43
|
|||||||||||||||
STIIIZY, Inc. (f/k/a Shryne Group Inc.)
|
Senior Secured First Lien Term Loan
|
i 5/26/2022
|
i 5/26/2026
|
Variable interest rate PRIME(11) + i 8.5%
( i 4.0% PRIME Floor) i 1.0% PIK |
3
|
West
|
No
|
i 21,035
|
i 20,612
|
i 20,613
|
i 23.58
|
|||||||||||||||
Verano Holdings Corp.
|
Senior Secured First Lien Term Loan
|
i 10/27/2022
|
i 10/30/2026
|
Variable interest rate PRIME(11) + i 6.5%
( i 6.25% PRIME Floor) |
3
|
Midwest
|
Yes
|
i 21,000
|
i 20,489
|
i 20,579
|
i 23.54
|
|||||||||||||||
|
$
|
i 59,468
|
i 57,488
|
i 57,381
|
i 65.66
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||
Total: Debt Securities -United States ( i 65.66%):
|
i 57,488
|
i 57,381
|
i 65.66
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||
Total: Debt Securities ( i 65.66%):
|
i 57,488
|
i 57,381
|
i 65.66
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||
Total Investment in Securities ( i 65.66%):
|
$
|
i 57,488
|
$
|
i 57,381
|
i 65.66
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||||
Cash equivalents
|
||||||||||||||||||||||||||
State Street Institutional U.S. Government Money Market Fund (12)
|
1 |
$
|
i 29,821
|
$
|
i 29,821
|
i 34.12
|
%
|
|||||||||||||||||||
Cash equivalents ( i 34.12%):
|
i 29,821
|
i 29,821
|
i 34.12
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||
Total Portfolio Investments and Cash equivalents ( i 99.78%):
|
$
|
i 87,309
|
$
|
i 87,202
|
i 99.78
|
%
|
(1) |
All portfolio companies are located in the United States, as determined by the location of the portfolio company’s
headquarters.
|
(2) |
No debt investment is non-income producing as of September 30, 2023.
|
(3) |
Investment date represents the date of initial investment, at which date interest began accruing.
|
(4) |
Interest rate is the fixed or variable rate of the debt investments.
|
(5) |
See Note 2 – Significant Accounting Policies and Note 4 — Fair Value of Financial Instruments in the accompanying
notes to the financial statements.
|
(6) |
Geographic regions are determined by the respective portfolio company’s headquarters’ location.
|
(7) |
Under the Investment Company Act of 1940, as amended (the “1940 Act”), a business development company (“BDC”) may not
acquire any “non-qualifying asset” (i.e., an asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as “qualifying assets”), unless, at the time the acquisition is made, qualifying assets
represent at least 70% of the BDC’s total assets. As of September 30, 2023 the aggregate fair value of non-qualifying assets is $ i 24,596
or i 27.6% of the Company’s total assets.
|
(8) |
Principal is net of repayments, if any, as per the terms of the debt instrument’s contract.
|
(9) |
All investments were valued at fair value. See Note 4 — Fair Value of Financial Instruments in the accompanying notes
to the financial statements.
|
(10) |
The Company uses the North American Industry Classification System (“NAICS”) code for classifying the industry
grouping of its portfolio companies.
|
(11) |
As of September 30, 2023 PRIME is i 8.50%.
|
(12) |
Portfolio Company (1)
|
Type of
Investment (2)
|
Investment
Date (3)
|
Maturity Date
|
Interest Rate (4)
|
Fair Value
Hierarchy (5) |
Geographic
Region (6) |
Non-Qualifying
Asset (7)
|
Principal
Amount (8)
|
Amortized
Cost
|
Fair
Value (9) |
% of
Net Assets
|
|||||||||||||||
Debt Securities - United States
|
|
|
|
|
|
|||||||||||||||||||||
Wholesale Trade (10)
|
|
|
||||||||||||||||||||||||
AYR Wellness, Inc.
|
Senior Secured Note
|
i 10/11/2022
|
i 12/10/2024
|
Fixed interest rate i 12.5%
|
3
|
Southeast
|
No
|
$
|
i 2,000
|
$
|
i 1,773
|
$
|
i 1,773
|
i 2.05
|
%
|
|||||||||||
Curaleaf Holdings, Inc.
|
Senior Secured Note
|
i 10/11/2022
|
i 12/15/2026
|
Fixed interest rate i 8.0%
|
3
|
Northeast
|
No
|
i 4,500
|
i 3,854
|
i 3,854
|
i 4.46
|
|||||||||||||||
PharmaCann, Inc.
|
Senior Secured Note
|
i 6/30/2022
|
i 6/30/2025
|
Fixed interest rate i 12.0%
|
3
|
Midwest
|
No
|
i 4,250
|
i 4,029
|
i 3,967
|
i 4.59
|
|||||||||||||||
Shryne Group, Inc.
|
Senior Secured First Lien Term Loan
|
i 5/26/2022
|
i 5/26/2026
|
Variable interest rate PRIME(11) + i 8.5%
( i 4.0% PRIME Floor) |
3
|
West
|
No
|
i 21,000
|
i 20,480
|
i 20,269
|
i 23.44
|
|||||||||||||||
Verano Holdings Corp.
|
Senior Secured First Lien Term Loan
|
i 10/27/2022
|
i 10/30/2026
|
Variable interest rate PRIME(11) + i 6.5%
( i 6.25% PRIME Floor) |
3
|
Midwest
|
No
|
i 21,000
|
i 20,392
|
i 20,392
|
i 23.58
|
|||||||||||||||
|
|
|
|
|
|
$
|
i 52,750
|
i 50,528
|
i 50,255
|
i 58.12
|
||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
Total: Debt Securities - United States ( i 58.12%):
|
|
|
i 50,528
|
i 50,255
|
i 58.12
|
|||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
Total: Debt Securities ( i 58.12%):
|
|
|
i 50,528
|
i 50,255
|
i 58.12
|
|||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
Total Investment in Securities ( i 58.12%):
|
|
|
$
|
i 50,528
|
$
|
i 50,255
|
i 58.12
|
%
|
||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
Cash equivalents
|
|
|
||||||||||||||||||||||||
State Street Institutional U.S. Government Money Market Fund (12)
|
|
1 |
|
|
$
|
i 35,125
|
$
|
i 35,125
|
i 40.62
|
%
|
||||||||||||||||
Cash equivalents ( i 40.62%):
|
|
|
i 35,125
|
i 35,125
|
i 40.62
|
|||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
Total Portfolio Investments and Cash equivalents ( i 98.74%):
|
|
|
$
|
i 85,653
|
$
|
i 85,380
|
i 98.74
|
%
|
(1) |
All portfolio companies are located in the United States.
|
(2) |
No debt investment is non-income producing as of December 31, 2022.
|
(3) |
Investment date represents the date of initial investment, at which date interest began accruing.
|
(4) |
Interest rate is the fixed or variable rate of the debt investments.
|
(5) |
See Note 2 – Significant Accounting Policies and Note 4 — Fair Value of Financial Instruments in the accompanying notes to the financial statements.
|
(6) |
Geographic regions are determined by the respective portfolio company’s headquarters’ location.
|
(7) |
Under the Investment Company Act of 1940, as amended (the “1940 Act”), a business development company (“BDC”) may not acquire any “non-qualifying asset” (i.e., an asset other than assets of the type listed in Section 55(a) of the 1940
Act, which are referred to as “qualifying assets”), unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets.
|
(8) |
Principal is net of repayments, if any, as per the terms of the debt instrument’s contract.
|
(9) |
All investments were valued at fair value. See Note 4 — Fair Value of Financial Instruments in the accompanying notes to the financial statements.
|
(10) |
The Company uses the North American Industry Classification System (“NAICS”) code for classifying the industry grouping of its portfolio companies.
|
(11) |
As of December 31, 2022 PRIME is i 7.50%.
|
(12) |
• |
With respect to investments for which market quotations are readily available, those investments will typically be valued at the bid price of those market quotations;
|
• |
With respect to investments for which market quotations are not readily available, the valuation process begins with the Adviser’s valuation committee establishing a preliminary valuation of each investment, which may be based on
valuations, or ranges of valuations, provided by independent valuation firm(s);
|
• |
Preliminary valuations are documented and discussed by the Adviser’s valuation committee and, where appropriate, the independent valuation firm(s); and
|
• |
The Adviser determines the fair value of each investment.
|
• |
Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date;
|
• |
Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not
active, or for which all significant inputs are observable, either directly or indirectly; and
|
• |
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
|
Amortized Cost
|
Fair Value
|
|||||||||||||||
Industry
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Wholesale Trade
|
$
|
i 57,488,336
|
i 100.0
|
%
|
$
|
i 57,381,000
|
i 100.0
|
%
|
||||||||
Total
|
$
|
i 57,488,336
|
i 100.0
|
%
|
$
|
i 57,381,000
|
i 100.0
|
%
|
Amortized Cost
|
Fair Value
|
|||||||||||||||
Industry
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Wholesale Trade
|
$
|
i 50,527,898
|
i 100.0
|
%
|
$
|
i 50,254,550
|
i 100.0
|
%
|
||||||||
Total
|
$
|
i 50,527,898
|
i 100.0
|
%
|
$
|
i 50,254,550
|
i 100.0
|
%
|
Amortized Cost
|
Fair Value
|
|||||||||||||||
Geographic Location
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
West
|
$
|
i 24,834,972
|
i 43.2
|
%
|
$
|
i 24,804,000
|
i 43.2
|
%
|
||||||||
Midwest
|
i 24,578,030
|
i 42.8
|
i 24,447,500
|
i 42.6
|
||||||||||||
Northeast
|
i 8,075,334
|
i 14.0
|
i 8,129,500
|
i 14.2
|
||||||||||||
Total
|
$
|
i 57,488,336
|
i 100.0
|
%
|
$
|
i 57,381,000
|
i 100.0
|
%
|
Amortized Cost
|
Fair Value
|
|||||||||||||||
Geographic Location
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Midwest
|
$
|
i 24,420,752
|
i 48.4
|
%
|
$
|
i 24,358,686
|
i 48.5
|
%
|
||||||||
West
|
i 20,479,987
|
i 40.5
|
i 20,268,705
|
i 40.3
|
||||||||||||
Northeast
|
i 3,854,475
|
i 7.6
|
i 3,854,475
|
i 7.7
|
||||||||||||
Southeast
|
i 1,772,684
|
i 3.5
|
i 1,772,684
|
i 3.5
|
||||||||||||
Total
|
$
|
i 50,527,898
|
i 100.0
|
%
|
$
|
i 50,254,550
|
i 100.0
|
%
|
Amortized Cost
|
Fair Value
|
|||||||||||||||
Investment
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Senior Secured First Lien Term Loan
|
$
|
i 49,445,187
|
i 86.0
|
%
|
$
|
i 49,497,000
|
i 86.3
|
%
|
||||||||
Senior Secured Notes
|
i 8,043,149
|
i 14.0
|
i 7,884,000
|
i 13.7
|
||||||||||||
Total
|
$
|
i 57,488,336
|
i 100.0
|
%
|
$
|
i 57,381,000
|
i 100.0
|
%
|
Amortized Cost
|
Fair Value
|
|||||||||||||||
Investment
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Senior Secured First Lien Term Loan
|
$
|
i 40,871,914
|
i 80.9
|
%
|
$
|
i 40,660,633
|
i 80.9
|
%
|
||||||||
Senior Secured Notes
|
i 9,655,984
|
i 19.1
|
i 9,593,917
|
i 19.1
|
||||||||||||
Total
|
$
|
i 50,527,898
|
i 100.0
|
%
|
$
|
i 50,254,550
|
i 100.0
|
%
|
Fair Value Measurements at September 30, 2023 Using
|
||||||||||||||||
Assets
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Total
|
||||||||||||
Senior Secured First Lien Term Loan
|
$
|
i -
|
$
|
i -
|
$
|
i 49,497,000
|
$
|
i 49,497,000
|
||||||||
Senior Secured Notes
|
i -
|
i -
|
i 7,884,000
|
i 7,884,000
|
||||||||||||
Total
|
$
|
i -
|
$
|
i -
|
$
|
i 57,381,000
|
$
|
i 57,381,000
|
Fair Value Measurements at December 31, 2022 Using
|
||||||||||||||||
Assets
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Total
|
||||||||||||
Senior Secured First Lien Term Loan
|
$
|
i -
|
$
|
i -
|
$
|
i 40,660,633
|
$
|
i 40,660,633
|
||||||||
Senior Secured Notes
|
i -
|
i -
|
i 9,593,917
|
i 9,593,917
|
||||||||||||
Total
|
$
|
i -
|
$
|
i -
|
$
|
i 50,254,550
|
$
|
i 50,254,550
|
Investment Type
|
Fair Value as of
September 30, 2023 |
Valuation Techniques/
Methodologies
|
Unobservable
Input
|
Range
|
Weighted Average (1)
|
||||||||||
Senior Secured First Lien Term Loan
|
$
|
i 49,497,000
|
Discounted Cash Flow
|
Discount Rate
|
i 11.6% - i 15.3
|
%
|
i 13.2
|
%
|
|||||||
Senior Secured Notes
|
i 7,884,000
|
Discounted Cash Flow
|
Discount Rate
|
i 7.9% - i 14.2
|
%
|
i 11.0
|
%
|
||||||||
Total
|
$
|
i 57,381,000
|
Investment Type
|
Fair Value as of
|
Valuation Techniques/ Methodologies
|
Unobservable
Input
|
Range
|
Weighted Average (1)
|
||||||||||
Senior Secured First Lien Term Loan
|
$
|
i 40,660,633
|
Discounted Cash Flow
|
Discount Rate
|
i 7.2% - i 9.6
|
%
|
i 8.4
|
%
|
|||||||
Volatility
|
i 20.0% - i 20.0
|
%
|
i 20.0
|
%
|
|||||||||||
Senior Secured Notes
|
i 9,593,917
|
Discounted Cash Flow
|
Discount Rate
|
i 11.6% - i 18.7
|
%
|
i 14.3
|
%
|
||||||||
Volatility
|
i 7.0% - i 20.0
|
%
|
i 12.4
|
%
|
|||||||||||
Total
|
$
|
i 50,254,550
|
Senior Secured
First Lien Term Loan |
Senior
Secured Notes |
Total
Investments |
||||||||||
Fair Value as of December 31, 2022
|
$
|
i 40,660,633
|
$
|
i 9,593,917
|
$
|
i 50,254,550
|
||||||
Purchases
|
i 8,442,000
|
i -
|
i 8,442,000
|
|||||||||
Accretion of discount and fees (amortization of premium), net
|
i 233,119
|
i 197,933
|
i 431,052
|
|||||||||
PIK interest |
i 78,153 | i - | i 78,153 | |||||||||
Proceeds from sales of investments and principal repayments
|
( i 180,000
|
)
|
( i 1,600,000
|
)
|
( i 1,780,000
|
)
|
||||||
Net realized gain (loss) on investments
|
i -
|
( i 210,767
|
)
|
( i 210,767
|
)
|
|||||||
Net change in unrealized appreciation (depreciation) on investments
|
i 263,095
|
( i 97,083
|
)
|
i 166,012
|
||||||||
Balance as of September 30, 2023
|
$
|
i 49,497,000
|
$
|
i 7,884,000
|
$
|
i 57,381,000
|
||||||
|
||||||||||||
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of September 30, 2023
|
$
|
i 263,095
|
$
|
( i 97,083
|
)
|
$
|
i 166,012
|
Senior Secured
First Lien Term Loan |
Total
Investments |
|||||||
Fair Value as of December 31, 2021
|
$
|
i -
|
$
|
i -
|
||||
Purchases
|
i 24,417,500
|
i 24,417,500
|
||||||
Accretion of discount and fees (amortization of premium), net
|
i 49,966
|
i 49,966
|
||||||
PIK interest
|
i -
|
i -
|
||||||
Proceeds from sales of investments and principal repayments
|
i -
|
i -
|
||||||
Net realized gain (loss) on investments
|
i -
|
i -
|
||||||
Net change in unrealized appreciation (depreciation) on investments
|
i -
|
i -
|
||||||
Balance as of September 30, 2022
|
$
|
i 24,467,466
|
$
|
i 24,467,466
|
||||
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of September 30, 2022
|
$
|
i -
|
$
|
i -
|
Declaration Date
|
Type
|
Record Date
|
Payment Date
|
Per Share
Amount |
Dividends Paid
|
|||||||||
i Quarterly
|
$
|
i 0.23
|
$
|
i 1,429,374
|
||||||||||
i Special
|
$
|
i 0.40
|
$
|
i 2,485,869
|
Declaration Date |
Type |
Record Date
|
Payment Date
|
Shares
|
||||||
i i August 10, 2023 / |
i i Quarterly /
|
i i September 15, 2023 /
|
i i September 29, 2023 /
|
i i 12 /
|
||||||
i i August 10, 2023 /
|
i i Special /
|
i i September 15, 2023 /
|
i i September 29, 2023 /
|
i i 21 /
|
Three Months Ended
|
Three Months Ended
|
Nine Months Ended | Nine Months Ended | |||||||||||||
September 30, 2023 | September 30, 2022 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations
|
$
|
i 1,273,882
|
$
|
i 559,923
|
$ | i 4,842,366 | $ | i 556,129 | ||||||||
Weighted Average Shares Outstanding - basic and diluted
|
i i 6,214,673 /
|
i i 6,214,672 /
|
i i 6,214,672 / |
i i 5,338,691 / |
||||||||||||
Net increase (decrease) in net assets resulting from operations per share - basic and diluted
|
$
|
i i 0.20 /
|
$
|
i i 0.09 /
|
$ | i i 0.78 / | $ | i i 0.10 / |
Undistributed ordinary income
|
$
|
i 3,418,714
|
||
Net unrealized appreciation (depreciation) on investments
|
i 713,009
|
|||
Other temporary differences
|
( i 399,948
|
)
|
||
Total
|
$
|
i 3,731,775
|
September 30, 2023 | ||||||||||||
Tax cost of investments and cash equivalents
|
$ | i 87,309,272 |
$
|
i 87,454,317
|
$
|
i 85,653,218
|
||||||
|
||||||||||||
Unrealized appreciation
|
$ | i 154,529 |
$
|
i 713,009
|
$
|
i -
|
||||||
Unrealized depreciation
|
( i 261,865 | ) |
i -
|
( i 273,348
|
)
|
|||||||
Net unrealized appreciation (depreciation) from investments and cash equivalents
|
$ | ( i 107,336 | ) |
$
|
i 713,009
|
$
|
( i 273,348
|
)
|
Nine Months Ended |
||||||||
Per share data:
|
||||||||
Net asset value at beginning of period
|
$
|
i 13.91
|
$
|
i 14.00
|
||||
Net investment income (loss) (1)
|
i 0.79
|
i 0.05
|
||||||
Net realized and unrealized gains/(losses) on investments(1)
|
( i 0.01
|
)
|
i -
|
|||||
Net increase/(decrease) in net assets resulting from operations
|
i 0.78
|
i 0.05
|
||||||
Offering costs (2)
|
i -
|
( i 0.27
|
)
|
|||||
Permanent tax adjustments (2)
|
i -
|
( i 0.05
|
)
|
|||||
Less distributions from net investment income (loss) |
( i 0.63 | ) | i - | |||||
Net asset value at end of period
|
$
|
i 14.06
|
$
|
i 13.73
|
||||
Net assets at end of period
|
$
|
i 87,402,852
|
$
|
i 85,323,750
|
||||
Shares outstanding at end of period
|
i 6,214,705
|
i 6,214,672
|
||||||
Weighted average net assets
|
$
|
i 88,458,750
|
$
|
i 84,331,724
|
||||
|
||||||||
Per share market value at end of period
|
$
|
i 9.68
|
$
|
i 10.00
|
||||
Total return based on market value (3)
|
( i 1.22
|
)%
|
( i 28.57
|
)%
|
||||
Total return based on net asset value (3)
|
i 7.66
|
%
|
( i 1.93
|
)%
|
||||
|
||||||||
Ratio/Supplemental data:
|
||||||||
Ratio of expenses to average net assets(4)
|
i 3.82
|
%
|
i 1.68
|
%
|
||||
Ratio of net investment income (loss) to average net assets(4)
|
i 5.52
|
%
|
i 0.69
|
%
|
||||
Portfolio turnover (4)
|
i 3
|
%
|
N/A
|
*
|
The Company was formed on January 25, 2021 and the effective date of the
registration statement was February 3, 2022.
|
(1) |
The per share data was derived by using the weighted average shares outstanding during the nine months
ended September 30, 2023. For the period from February 3, 2022 to September 30, 2022, the per share data was derived by adding (deducting) the increase (decrease) per share in undistributed net investment income (loss) during the period
presented to (from) dividends from net investment income (loss) per share.
|
(2) |
The per share data was derived by using the shares outstanding during the period from February 3, 2022 to September 30, 2022. SSC has absorbed
the cost of the sales load (i.e, underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock.
|
(3) |
Total return based on market value is based on the change in market price per share between the
beginning and ending market prices per share in each period and assumes that common stock dividends are reinvested in accordance with our common stock dividend reinvestment plan. Total return based on net asset value is based upon the
change in net asset value per share between the beginning and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our common stock dividend reinvestment plan. For periods less than
a year, total return is not annualized.
|
(4) |
Ratio is not annualized.
|
• |
the cost of our organization and offerings;
|
• |
the cost of calculating our NAV, including the cost of any third-party valuation services;
|
• |
the cost of effecting sales and repurchases of shares of our common stock and other securities;
|
• |
fees and expenses payable under any underwriting agreements, if any;
|
• |
debt service and other costs of borrowings or other financing arrangements;
|
• |
costs of hedging;
|
• |
expenses, including travel expenses, incurred by the Adviser, or members of the investment team, or payable to third-parties, performing due diligence on prospective portfolio companies and, if necessary, enforcing our rights;
|
• |
management and incentive fees payable pursuant to the Investment Advisory Agreement;
|
• |
fees payable to third-parties relating to, or associated with, making investments and valuing investments (including third-party valuation firms);
|
• |
costs, including legal fees, associated with compliance under cannabis laws;
|
• |
transfer agent and custodial fees;
|
• |
fees and expenses associated with marketing efforts (including attendance at industry and investor conferences and similar events);
|
• |
federal and state registration fees;
|
• |
any exchange listing fees and fees payable to rating agencies;
|
• |
federal, state and local taxes;
|
• |
independent directors’ fees and expenses, including travel expenses;
|
• |
cost of preparing financial statements and maintaining books and records and filing reports or other documents with the SEC (or other regulatory bodies) and other reporting and compliance costs, and the compensation of professionals
responsible for the preparation of the foregoing;
|
• |
the cost of any reports, proxy statements or other notices to our stockholders (including printing and mailing costs), the costs of any stockholder or director meetings and the compensation of investor relations personnel responsible for
the preparation of the foregoing and related matters;
|
• |
brokerage commissions and other compensation payable to brokers or dealers;
|
• |
research and market data;
|
• |
fidelity bond, directors’ and officers’ errors and omissions liability insurance and other insurance premiums;
|
• |
direct costs and expenses of administration, including printing, mailing and staff;
|
• |
fees and expenses associated with independent audits, and outside legal and consulting costs;
|
• |
costs of winding up;
|
• |
costs incurred in connection with the formation or maintenance of entities or vehicles to hold our assets for tax or other purposes;
|
• |
extraordinary expenses (such as litigation or indemnification); and
|
• |
costs associated with reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws.
|
Type
|
Amortized Cost
|
Fair Value
|
||||||
Senior Secured First Lien Term Loan
|
86.0
|
%
|
86.3
|
%
|
||||
Senior Secured Notes
|
14.0
|
13.7
|
||||||
Total
|
100.0
|
%
|
100.0
|
%
|
Type
|
Amortized Cost
|
Fair Value
|
||||||
Senior Secured First Lien Term Loan
|
80.9
|
%
|
80.9
|
%
|
||||
Senior Secured Notes
|
19.1
|
19.1
|
||||||
Total
|
100.0
|
%
|
100.0
|
%
|
Geographic Region
|
Amortized Cost
|
Fair Value
|
||||||
West
|
43.2
|
%
|
43.2
|
%
|
||||
Midwest
|
42.8
|
42.6
|
||||||
Northeast
|
14.0
|
14.2
|
||||||
Total
|
100.0
|
%
|
100.0
|
%
|
Geographic Region
|
Amortized Cost
|
Fair Value
|
||||||
Midwest
|
48.4
|
%
|
48.5
|
%
|
||||
West
|
40.5
|
40.3
|
||||||
Northeast
|
7.6
|
7.7
|
||||||
Southeast
|
3.5
|
3.5
|
||||||
Total
|
100.0
|
%
|
100.0
|
%
|
Industry
|
Amortized Cost
|
Fair Value
|
||||||
Wholesale Trade
|
100.0
|
%
|
100.0
|
%
|
||||
Total
|
100.0
|
%
|
100.0
|
%
|
Industry
|
Amortized Cost
|
Fair Value
|
||||||
Wholesale Trade
|
100.0
|
%
|
100.0
|
%
|
||||
Total
|
100.0
|
%
|
100.0
|
%
|
Nine Months Ended
September 30, 2023 |
Nine Months Ended
September 30, 2022 |
|||||||
Beginning Portfolio, at fair value
|
$
|
50,254,550
|
$
|
-
|
||||
Purchases
|
8,442,000
|
24,417,500
|
||||||
Accretion of discount and fees (amortization of premium), net
|
431,052
|
49,966
|
||||||
PIK interest
|
78,153
|
-
|
||||||
Proceeds from sales of investments and principal repayments
|
(1,780,000
|
)
|
-
|
|||||
Net realized gain/(loss) on investments
|
(210,767
|
)
|
-
|
|||||
Net change in unrealized appreciation/(depreciation) on investments
|
166,012
|
-
|
||||||
Ending Portfolio, at fair value
|
$
|
57,381,000
|
$
|
24,467,466
|
Investment
Performance
Risk Rating
|
Summary Description
|
|
Grade 1
|
Investments rated 1 involve the least amount of risk to our initial cost basis. The borrower is performing above expectations, and the trends and risk factors for this investment since origination or
acquisition are generally favorable. Full return of principal, interest and dividend income is expected.
|
|
Grade 2
|
Investment is performing in-line with expectations. Investments rated 2 involve an acceptable level of risk that is similar to the risk at the time of origination or acquisition. Risk factors remain neutral
or favorable compared with initial underwriting. All investments or acquired investments in new portfolio companies are initially assessed a rating of 2.
|
|
Grade 3
|
Investments rated 3 involve a borrower performing below expectations and indicates that the loan’s risk has increased somewhat since origination or acquisition. Capital impairment or payment delinquency is
not anticipated. The investment may also be out of compliance with certain financial covenants.
|
|
Grade 4
|
Investments rated 4 involve a borrower performing materially below expectations and indicates that the loan’s risk has increased materially since origination or acquisition. In addition to the borrower being
generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 120 days past due). Delinquency of interest and / or dividend payments in anticipated. No loss of principal is anticipated.
|
|
Grade 5
|
Investments rated 5 involve a borrower performing substantially below expectations and indicates that the loan’s risk has increased substantially since origination or acquisition. It is anticipated that the
Company will not recoup its initial cost and may realize a loss upon exit. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 5 are not anticipated to be repaid in full and we will
reduce the fair market value of the loan to the amount we anticipate will be recovered.
|
Investment Performance Risk Rating
|
Investments at Fair
Value
|
Percentage of Total
Investments
|
|||||
1 |
$
|
-
|
-
|
%
|
|||
2 |
57,381,000
|
100.00
|
|||||
3 |
-
|
-
|
|||||
4 |
-
|
-
|
|||||
5 |
-
|
-
|
|||||
Total
|
$
|
57,381,000
|
100.00
|
%
|
Investment Performance Risk Rating
|
Investments at Fair
Value
|
Percentage of Total
Investments
|
|||||
1 |
$ | - | - | % |
|||
2 |
50,254,550 |
100.00
|
|||||
3 |
- | - | |||||
4 |
- | - | |||||
5 |
- |
- | |||||
Total
|
$ | 50,254,550 |
100.00
|
% |
Three Months Ended
September 30, 2023 |
Three Months Ended
September 30, 2022 |
Nine Months Ended
September 30, 2023 |
Nine Months Ended
September 30, 2022 |
|||||||||||||
Stated interest income
|
$
|
2,740,665
|
$
|
1,140,058
|
$
|
7,596,808
|
$
|
1,540,215
|
||||||||
Accretion of discount and fees (amortization of premium), net
|
129,494
|
40,459
|
431,052
|
49,966
|
||||||||||||
Payment in-kind interest
|
15,566
|
-
|
78,153
|
-
|
||||||||||||
Total interest income
|
2,885,725
|
1,180,517
|
8,106,013
|
1,590,181
|
||||||||||||
Other fee income
|
31,250
|
-
|
162,500
|
410,000
|
||||||||||||
Total investment income
|
$
|
2,916,975
|
$
|
1,180,517
|
$
|
8,268,513
|
$
|
2,000,181
|
Three Months Ended
September 30, 2023 |
Three Months Ended
September 30, 2022 |
Nine Months Ended
September 30, 2023 |
Nine Months Ended
September 30, 2022 |
|||||||||||||
Gross unrealized appreciation
|
$
|
-
|
$
|
-
|
$
|
365,811
|
$
|
-
|
||||||||
Gross unrealized depreciation
|
(343,104
|
)
|
9,508
|
(199,799
|
)
|
-
|
||||||||||
Total net unrealized appreciation (depreciation) on investments
|
$
|
(343,104
|
)
|
$
|
9,508
|
$
|
166,012
|
$
|
-
|
Three Months Ended
September 30, 2023 |
Three Months Ended
September 30, 2022 |
Nine Months Ended
September 30, 2023 |
Nine Months Ended
September 30, 2022 |
|||||||||||||
STIIIZY, Inc. (f/k/a Shryne Group Inc.)
|
$
|
(129,301
|
)
|
$
|
-
|
$
|
212,530
|
$
|
-
|
|||||||
Verano Holdings Corp.
|
(33,861
|
)
|
-
|
90,950
|
-
|
|||||||||||
MariMed Inc.
|
(39,029
|
)
|
-
|
(8,165
|
)
|
-
|
||||||||||
Dreamfields Brands, Inc. (d/b/a Jeeter)
|
(32,298
|
)
|
-
|
(32,220
|
)
|
-
|
||||||||||
PharmaCann, Inc.
|
(62,871
|
)
|
9,508
|
(159,414
|
)
|
-
|
||||||||||
Curaleaf Holdings, Inc.
|
(45,744
|
)
|
-
|
62,331
|
-
|
|||||||||||
Total net change in unrealized appreciation (depreciation) on investments
|
$
|
(343,104
|
)
|
$
|
9,508
|
$
|
166,012
|
$
|
-
|
• |
With respect to investments for which market quotations are readily available, those investments will typically be valued at the bid price of those market quotations;
|
• |
With respect to investments for which market quotations are not readily available, the valuation process begins with the Adviser’s valuation committee establishing a preliminary valuation of each investment, which may be based on
valuations, or ranges of valuations, provided by independent valuation firm(s);
|
• |
Preliminary valuations are documented and discussed by the Adviser’s valuation committee and, where appropriate, the independent valuation firm(s); and
|
• |
The Adviser determines the fair value of each investment.
|
• |
Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date;
|
• |
Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active,
or for which all significant inputs are observable, either directly or indirectly; and
|
• |
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
|
Price Range
|
||||||||||||||||||||||||
Class and Period
|
Net Asset
Value(1)
|
High
|
Low
|
High Sales
Price
Premium (Discount) to
Net Asset
Value(2)
|
Low Sales
Price Premium (Discount) to
Net Asset
Value(2)
|
Cash
Dividend Per Share(3)
|
||||||||||||||||||
Year Ended December 31, 2023
|
||||||||||||||||||||||||
Fourth Quarter (Through November 6, 2023)
|
$
|
*
|
$
|
9.67
|
$
|
9.21
|
*
|
*
|
*
|
|||||||||||||||
Third Quarter
|
$
|
14.06
|
$
|
10.37
|
$
|
7.65
|
-26.3
|
%
|
-45.6
|
%
|
0.63
|
(6)
|
||||||||||||
Second Quarter
|
$
|
14.49
|
$
|
9.19
|
$
|
7.82
|
-36.3
|
%
|
-45.8
|
%
|
-
|
|||||||||||||
First Quarter
|
$
|
14.29
|
$
|
9.98
|
$
|
8.25
|
-30.2
|
%
|
-42.3
|
%
|
-
|
|||||||||||||
Year Ended December 31, 2022(4)
|
||||||||||||||||||||||||
Fourth Quarter
|
$
|
13.91
|
$
|
10.55
|
$
|
9.57
|
-24.2
|
%
|
-31.2
|
%
|
-
|
|||||||||||||
Third Quarter
|
$
|
13.73
|
$
|
10.74
|
$
|
9.00
|
-21.8
|
%
|
-34.5
|
%
|
-
|
|||||||||||||
Second Quarter
|
$
|
13.64
|
$
|
13.50
|
$
|
7.80
|
-1.0
|
%
|
-42.8
|
%
|
-
|
|||||||||||||
First Quarter(5)
|
$
|
13.61
|
$
|
14.41
|
$
|
12.57
|
5.9
|
%
|
-7.6
|
%
|
-
|
Declaration Date
|
|
Type
|
|
Record Date
|
|
Payment Date
|
|
Per Share
Amount |
|
Dividends Paid
|
|
Quarterly
|
|
|
|
$ 0.23
|
|
$ 1,429,374
|
|||
|
Special
|
|
|
|
$ 0.40
|
|
$ 2,485,869
|
Declaration Date
|
|
Type
|
|
Record Date
|
|
Payment Date
|
|
Shares
|
|
Quarterly
|
|
|
|
12
|
|||
|
Special
|
|
|
|
21
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Change in Interest Rates
|
Interest Income
|
Interest expense
|
Net Income/(Loss)
|
|||||||||
Up 300 basis points
|
$
|
1,523
|
$
|
-
|
$
|
1,523
|
||||||
Up 200 basis points
|
1,015
|
-
|
1,015
|
|||||||||
Up 100 basis points
|
508
|
-
|
508
|
|||||||||
Down 100 basis points
|
(508
|
)
|
-
|
(508
|
)
|
|||||||
Down 200 basis points
|
(972
|
)
|
-
|
(972
|
)
|
|||||||
Down 300 basis points
|
(1,246
|
)
|
-
|
(1,246
|
)
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3. |
Defaults Upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
Exhibit
Number
|
Description of Exhibit
|
Articles of Amendment and Restatement of the Company(1)
|
|
Amended and Restated Bylaws of the Company(1)
|
|
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
|
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
(1) |
Incorporated by reference to the Company’s annual report on Form 10-K/A, filed on June 30, 2022.
|
SILVER SPIKE INVESTMENT CORP.
|
|||
By:
|
/s/ Scott Gordon
|
||
Chief Executive Officer (Principal Executive Officer)
|
|||
By:
|
/s/ Umesh Mahajan
|
||
Chief Financial Officer (Principal Financial and Accounting Officer)
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
3/31/24 | ||||
12/31/23 | ||||
12/29/23 | ||||
12/20/23 | ||||
Filed on: | 11/9/23 | |||
11/8/23 | ||||
11/6/23 | ||||
For Period end: | 9/30/23 | |||
9/29/23 | ||||
9/15/23 | ||||
8/10/23 | 8-K | |||
6/30/23 | 10-Q | |||
3/31/23 | 10-KT, 10-Q, 8-K | |||
12/31/22 | 10-KT | |||
11/8/22 | 8-K | |||
9/30/22 | 10-Q | |||
9/8/22 | ||||
6/30/22 | 10-K/A, 10-Q | |||
4/1/22 | ||||
3/31/22 | 10-K, 10-K/A | |||
3/1/22 | 8-K | |||
2/4/22 | 424B1, 497AD, EFFECT | |||
2/3/22 | 3, 497AD, EFFECT | |||
1/1/22 | ||||
12/31/21 | ||||
6/15/21 | ||||
1/25/21 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 6/30/22 Silver Spike Investment Corp. 10-K/A 3/31/22 16:2.1M Davis Polk & … LLP 01/FA |