Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES      
Net increase (decrease) in net assets resulting from operations $ 94,506 $ 42,668 $ 19,914
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:      
Purchase of investments (177,649) (175,477) (274,898)
Principal repayments on investments 133,471 107,505 159,992
Proceeds from sale of investments 6,750 18,005 15,848
Increase in investments due to paid-in-kind interest or other (5,525) (3,699) (4,532)
Net change in premiums, discounts and amortization 170 114 (445)
Net realized loss (gain) on investments and other (5,959) (12,664) (5,173)
Net unrealized depreciation (appreciation) of investments (42,703) 11,016 17,538
Amortization of deferred financing costs 1,864 1,529 1,175
Changes in assets and liabilities:      
Decrease (increase) in interest receivable, net 177 (3,363) (376)
Decrease (increase) in funds due from administrative agent 134 263 (248)
Decrease (increase) in other assets, net (1,224) (572) (787)
Increase (decrease) in accounts payable and accrued expenses 224 506 10
Increase (decrease) in interest payable (40) 439 720
Increase (decrease) in other liabilities (1,063) 1,046 (5,029)
Net cash provided by (used in) operating activities 3,240 (10,860) (76,401)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from line of credit 221,200 149,000 328,900
Repayments on line of credit (198,400) (243,000) (237,600)
Proceeds from issuance of notes payable 0 57,000 50,000
Redemption of notes payable 0 0 (38,813)
Financing costs (686) (3,522) (1,968)
Proceeds from issuance of common stock 10,998 87,394 4,533
Proceeds from issuance of preferred stock 7,846 0 0
Offering costs for issuance of common stock (154) (1,311) (68)
Distributions paid to common stockholders (43,141) (35,407) (27,322)
Net cash provided by (used in) financing activities (2,337) 10,154 77,662
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS 903 (706) 1,261
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR 1,401 2,107 846
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, END OF YEAR 2,304 1,401 2,107
Supplemental Cash Flow Elements      
CASH PAID DURING YEAR FOR INTEREST 21,755 20,408 12,246
NON-CASH ACTIVITIES [1] 0 2,416 7,489
Adviser      
Changes in assets and liabilities:      
Increase (decrease) in fee due to related party [2] 17 1,768 (151)
Administrator      
Changes in assets and liabilities:      
Increase (decrease) in fee due to related party [2] 90 56 41
Investment, Unaffiliated and Affiliated Issuer, Excluding Other      
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:      
Net realized loss (gain) on investments and other (2,008) (12,345) (5,416)
Net unrealized depreciation (appreciation) of investments (42,703) 11,016 17,538
Other      
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:      
Net realized loss (gain) on investments and other (3,951) (319) 243
Net unrealized depreciation (appreciation) of investments $ 0 $ 0 $ 0
[1] Non-cash activities relate to estimated tax liabilities and escrows associated with portfolio company exits and the following transactions:
•In October 2022, our investment in Targus Cayman HoldCo Ltd. was sold for net proceeds of approximately $8.0 million, resulting in a realized gain of approximately $5.9 million. As part of the proceeds, we received an interest in B. Riley Financial, Inc. 6.75% senior notes in the amount of $2.4 million.
•In June 2022, our investment in LWO Acquisitions Company LLC was restructured, resulting in non-cash activity of $6.8 million and new investments in Lonestar EMS, LLC, which are listed on the accompanying Consolidated Schedule of Investments as of September 30, 2022.
[2] Refer to Note 4—Related Party Transactions for additional information.