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, 2023
Sep. 30, 2022
Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES      
Net increase (decrease) in net assets resulting from operations $ 42,668 $ 19,914 $ 84,299
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:      
Purchase of investments (175,477) (274,898) (181,841)
Principal repayments on investments 107,505 159,992 126,816
Proceeds from sale of investments 18,005 15,848 15,848
Increase in investments due to paid-in-kind interest or other (3,699) (4,532) (5,994)
Net change in premiums, discounts and amortization 114 (445) 876
Net realized loss (gain) on investments and other (12,664) (5,173) (3,180)
Net unrealized depreciation (appreciation) of investments and other 11,016 17,538 (54,997)
Amortization of deferred financing costs 1,529 1,175 1,347
Changes in assets and liabilities:      
Decrease (increase) in interest receivable, net (3,363) (376) 640
Decrease (increase) in funds due from administrative agent 263 (248) (848)
Decrease (increase) in other assets, net (572) (787) (941)
Increase (decrease) in accounts payable and accrued expenses 506 10 113
Increase (decrease) in interest payable 439 720 616
Increase (decrease) in other liabilities 1,046 (5,029) 2,562
Net cash provided by (used in) operating activities (10,860) (76,401) (14,062)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from line of credit 149,000 328,900 238,800
Repayments on line of credit (243,000) (237,600) (316,300)
Proceeds from issuance of notes payable 57,000 50,000 150,000
Redemption of notes payable 0 (38,813) (57,500)
Financing costs (3,522) (1,968) (3,036)
Proceeds from issuance of common stock 87,394 4,533 26,850
Offering costs for issuance of common stock (1,311) (68) (403)
Distributions paid to common stockholders (35,407) (27,322) (25,972)
Net cash provided by (used in) financing activities 10,154 77,662 12,439
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS (706) 1,261 (1,623)
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR 2,107 846 2,469
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, END OF YEAR 1,401 2,107 846
Supplemental Cash Flow Elements      
CASH PAID DURING YEAR FOR INTEREST 20,408 12,246 10,897
NON-CASH ACTIVITIES [1] 2,416 7,489 6,633
Adviser      
Changes in assets and liabilities:      
Increase (decrease) in fee due to related party [2] 1,768 (151) 569
Administrator      
Changes in assets and liabilities:      
Increase (decrease) in fee due to related party [2] 56 41 53
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 (12,345) (5,416) (4,179)
Net unrealized depreciation (appreciation) of investments and other 11,016 17,538 (55,347)
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 (319) 243 999
Net unrealized depreciation (appreciation) of investments and other $ 0 $ 0 $ 350
[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.
•In June 2021, our investment in NetFortris Corp. was restructured. As part of the transaction, approximately $3.5 million of fees and accrued interest were capitalized to the term loan.
•Approximately $3.1 million of non-cash activities consists of estimated tax liabilities for portfolio company exits that occurred during the year ended September 30, 2021.
[2] Refer to Note 4—Related Party Transactions for additional information.