Quarterly report pursuant to Section 13 or 15(d)

DISTRIBUTIONS TO COMMON STOCKHOLDERS

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DISTRIBUTIONS TO COMMON STOCKHOLDERS
 3 Months Ended
Dec. 31, 2023
Equity [Abstract]  
DISTRIBUTIONS TO COMMON STOCKHOLDERS CUMULATIVE REDEEMABLE PREFERRED STOCK OFFERING
In May 2023, we entered into a Dealer Manager Agreement pursuant to which we may sell a maximum of 6,000,000 shares of 6.25% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), par value $0.001 per share, on a “reasonable best efforts” basis through our affiliated dealer manager, Gladstone Securities, at a public offering price of $25.00 per share (the “Series A Offering”). As of December 31, 2023, no shares of Series A Preferred Stock have been issued.
Under the Dealer Manager Agreement, Gladstone Securities will provide certain sales, promotional and marketing services to us in connection with the Series A Offering, and we will pay Gladstone Securities (i) selling commissions of up to 7.0% of the gross proceeds from sales of Series A Preferred Stock in the Series A Offering, and (ii) a dealer manager fee of up to 3.0% of the gross proceeds from sales of Series A Preferred Stock in the Series A Offering. Gladstone Securities may, in its sole discretion, reallow a portion of the dealer manager fee to participating broker-dealers in support of the Series A Offering. Pursuant to the Dealer Manager Agreement, the offering of the Series A Preferred Stock will terminate on the date that is the earlier of (1) December 31, 2026 (unless earlier terminated or extended by our Board of Directors) and (2) the date on which all 6,000,000 shares of Series A Preferred Stock offered are sold.DISTRIBUTIONS TO COMMON STOCKHOLDERS
To qualify to be taxed as a RIC under Subchapter M of the Code, we must generally distribute to our stockholders, for each taxable year, at least 90% of our taxable ordinary income plus the excess of our net short-term capital gains over net long-term capital losses (“Investment Company Taxable Income”). The amount to be paid out as distributions to our stockholders is determined by our Board of Directors quarterly and is based on management’s estimate of Investment Company Taxable Income. Based on that estimate, our Board of Directors declares three monthly distributions to common stockholders each quarter.
The federal income tax characteristics of all distributions will be reported to stockholders on the IRS Form 1099 after the end of each calendar year. Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of cash distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date.
For the calendar year ended December 31, 2023, 100.0% of distributions to common stockholders were deemed to be paid from ordinary income for 1099 stockholder reporting purposes. For the calendar year ended December 31, 2022, 93.2% of distributions to common stockholders were deemed to be paid from ordinary income and 6.8% of distributions were deemed to be return of capital for 1099 stockholder reporting purposes.
We paid the following monthly distributions to common stockholders for the three months ended December 31, 2023 and 2022:
Fiscal Year Declaration Date Record Date Payment Date Distribution per Common Share
2024 October 10, 2023 October 20, 2023 October 31, 2023 $ 0.0825 
October 10, 2023 November 20, 2023 November 30, 2023 0.0825 
October 10, 2023 December 18, 2023 December 29, 2023 0.0825 
Three Months Ended December 31, 2023:
 $ 0.2475 
Fiscal Year Declaration Date Record Date Payment Date Distribution per Common Share
2023 October 11, 2022 October 21, 2022 October 31, 2022 $ 0.07 
October 11, 2022 November 18, 2022 November 30, 2022 0.07 
October 11, 2022 December 20, 2022 December 30, 2022 0.07 
Three Months Ended December 31, 2022:
 $ 0.21 
Aggregate distributions declared and paid to our common stockholders were approximately $10.8 million and $7.4 million for the three months ended December 31, 2023 and 2022, respectively, and were declared based on estimates of Investment Company Taxable Income. For the fiscal year ended September 30, 2023, our current and accumulated earnings and profits exceeded common stock distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $5.0 million of the first common distributions paid to common stockholders in the subsequent fiscal year as having been paid in the prior year.
For the three months ended December 31, 2023 and the fiscal year ended September 30, 2023, we recorded the following adjustments for book-tax differences to reflect tax character. Results of operations, total net assets, and cash flows were not affected by these adjustments.
Three Months Ended
December 31, 2023
Year Ended
September 30, 2023
Undistributed net investment income
$ —  $ (373)
Accumulated net realized gain (loss) —  373 
Capital in excess of par value —  —