FORM 10-Q For the TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (212) 448-0702 the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or our performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including, but not limited to, statements as to: (NOW KNOWN AS PROSPECT SUSTAINABLE INCOME FUND, INC.) AS OF OPERATIONS additional information. revolving credit facility at the SPV. This subsidiary has been consolidated since operations commenced. On and effective August 5, 2020, the Company changed the name of the SPV to Prospect Flexible Funding, LLC. Cash.All cash balances are maintained with high credit quality financial institutions which are members of the Federal Deposit Insurance . The fair values of the Company’s investments are determined in good faith by the Company’s board of directors. The Company’s board of directors is solely responsible for the valuation of the Company’s portfolio investments at fair value as determined in good faith pursuant to the Company’s valuation policy and consistently applied valuation process. State Income Taxes.The Company has elected to be treated Service. six months ended December 31, 2020: Chief Financial Officer and Chief Compliance Officer and her staff. For the three months ended December 31, 2021 and 2020, allocation of overhead from the Administrator to the Company was $153,885 and $249,280, respectively. For the six months ended December 31, 2021 and 2020, allocation of overhead from the Administrator to the Company was $323,082 and $474,273, respectively. As of December 31, 2021 and June 30, 2021, $327,709 and $378,320, respectively, was payable to the Administrator by the Company. As of December 31, 2021, the total base management fee due to the Adviser after the waiver was $0. Liabilities December 31, 2021: The Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies and expense reimbursements from the Adviser. The Company has not established limits on the amount of funds it may use from available sources to make distributions. call provisions. certain of our investments. Generally, an increase in market yields, discount rates, or a decrease in EBITDA (or other) multiples may result in a decrease in the fair value measurement of certain of our investments. December 31, 2021: companies. common stock on November 5, 2021, December 3, 2021, January 7, 2022 and February 4, 2022, respectively. our Adviser, but in no event will leverage employed exceed the maximum amount permitted by the 1940 Act. our Administrator. companies and 24 structured subordinated notes. The following June 30, 2021. 2020, respectively. Total operating expenses before 2020, respectively. Our net investment income (loss) totaled legal expenses. $11,050. fundamental portfolio company performance. For the three months and Financial Condition, Liquidity and Capital Resources The cost of both the base management fee payable to PFIM and any incentive fees it earned would ultimately be borne by our stockholders. sale of covered senior securities is permitted by this April 2020 Order and is in the best interests of the BDC and its stockholders, (iii) requires prior disclosure on Form 8-K of an election to rely on Section continually monitoring and assessing the COVID-19 situation to determine any potential impact on the design and operating effectiveness of our internal controls over financial reporting. this report or hereby incorporated into this report by reference to exhibits previously filed with the SEC (according to the number assigned to them in Item ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934Quarterly Period Ended September 30, 2017OR☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transitionquarterly period from toended December 31, 2021Triton Pacific Investment Corporation, Inc.registrantRegistrant as specified in its charter)Maryland45-2460782Maryland 45-2460782 (State or other jurisdiction of (I.R.S. Employer
incorporation or organization)(I.R.S. Employer Identification No.) 10016 (Address of principal executive offices) (Zip Code) 6701 Center Drive West, Suite 1450 Los Angeles, CA 90045(Address of principal executive offices)(310) 943-4990(Registrant’s telephone number, including area code)code:Title of each class Trading Symbol(s) Name of each exchange on which registered None None None registrantRegistrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ x No ☐oregistrantRegistrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒o No ☐oregistrantRegistrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,”filer”, “accelerated filer”, “smaller reporting company”, and “smaller reporting“emerging growth company” in Rule 12b-2 of the Exchange Act.Large accelerated filer ☐oAccelerated filer ☐o Non-accelerated filer ☒ (Do not check if a smaller reporting company)xSmaller reporting company ☐oEmerging growth company o registrantRegistrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐o No ☒As November 14, 2017, the Registrant had 1,369,940.31 shares of Class A common stock,the issuer’s Common Stock, $0.001 par value outstanding.per share, outstanding as of February 7, 2022 was 2,372,865.Part I—Financial Information3Page PART I FINANCIAL INFORMATION 32745PART II OTHER INFORMATION 46Part II—Other Information464646Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.Proceeds4646464647482ContentsInformationAccounting Standards Board, the Securities and Exchange Commission, Internal Revenue Service, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business; andItem 1:Financial StatementsTriton Pacific Investment Corporation, Inc.CONSOLIDATED StatementS ofPosition September 30, 2017 December 31, (unaudited) 2016 ASSETS Affiliate Investments, at fair value (amortized cost - $1,916,389 and $1,896,901, respectively) $ 509,993 $ 1,875,202 Non-affiliate Investments, at fair value (amortized cost - $11,017,651 and $8,705,606, respectively) 10,975,686 8,728,971 Cash 5,874,634 3,788,901 Principal and interest receivable 26,606 19,305 Prepaid expenses 67,855 46,052 Reimbursement due from Adviser (see Note 4) 330,587 106,583 TOTAL ASSETS $ 17,785,361 $ 14,565,014 LIABILITIES AND NET ASSETS LIABILITIES Payable for investments purchased $ 1,237,500 $ 1,061,625 Accounts payable and accrued liabilities 340,248 225,000 Stockholder distributions payable — 16,574 Due to related parties (see Note 4) 1,239 33,113 TOTAL LIABILITIES 1,578,987 1,336,312 COMMITMENTS AND CONTINGENCIES(see Note 9) NET ASSETS Common stock, $0.001 par value, 75,000,000 shares authorized, 1,338,115.18 and 976,407.17 shares issued and outstanding respectively 1,338 976 Capital in excess of par value 18,070,020 13,255,764 Accumulated undistributed net realized gains 14,444 21,925 Accumulated overdistributed net investment income (431,069 ) (51,629 ) Accumulated unrealized appreciation (depreciation) on investments (1,448,359 ) 1,666 TOTAL NET ASSETS 16,206,374 13,228,702 TOTAL LIABILITIES AND NET ASSETS $ 17,785,361 $ 14,565,014 Net asset value per share of common stock at period end $ 12.11 $ 13.55 The accompanying notes are an integral part of these statements.Statements3Assets December 31, 2021 June 30, 2021 Investments at fair value: (unaudited) (audited) Non-control/non-affiliate investments (amortized cost of $38,328,865 and $38,086,490, respectively) $ 37,672,621 $ 37,842,310 Total investments 37,672,621 37,842,310 Cash 4,707,874 3,139,929 Deferred financing costs (Note 10) 433,741 463,376 Prepaid expenses and other assets 237,176 386,196 Interest receivable 135,896 68,750 Receivable for repayments of portfolio investments 3,125 9,590 Total Assets $ 43,190,433 $ 41,910,151 Liabilities Revolving Credit Facility (Note 10) $ 21,000,000 $ 21,000,000 Payable for investments purchased 2,000,000 — Due to Administrator (Note 4) 327,709 378,320 Accrued audit fees 157,147 160,000 Distributions payable 132,137 124,046 Accrued expenses 50,272 91,871 Interest payable 55,974 54,451 Accrued legal fees 43,495 72,185 Due to Affiliates (Note 4) 13,990 37,248 Due to PFIM (Note 4) — 44,223 Total Liabilities $ 23,780,724 $ 21,962,344 Commitments and Contingencies (Note 9) — — Net Assets $ 19,409,709 $ 19,947,807 Components of Net Assets Common Stock, par value $0.001 per share (75,000,000 shares authorized; 2,382,101 and 2,386,057 shares issued and outstanding, respectively) (Note 3) $ 2,383 $ 2,386 Paid-in capital in excess of par (Note 3) 24,188,615 25,000,327 Total distributable earnings (loss) (Note 6) (4,781,289) (5,054,906) Net Assets $ 19,409,709 $ 19,947,807 Net Asset Value Per Share (Note 11) $ 8.15 $ 8.36 Triton Pacific Investment Corporation, Inc.Statements of OperationsSTATEMENTS OF OPERATIONSThree Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Investment Income Interest income from non-control/non-affiliate investments $ 552,003 $ 548,536 $ 1,297,396 $ 1,114,461 Interest income from structured credit securities 207,776 322,559 457,927 604,679 Total Investment Income 759,779 871,095 1,755,323 1,719,140 Operating Expenses Base management fees (Note 4) 184,999 184,345 367,197 367,731 Administrator Costs (Note 4) 153,885 249,280 323,082 474,273 Interest expense and credit facility expenses (Note 10) 141,686 144,803 284,071 291,451 Audit and tax expense 80,147 144,050 164,225 216,850 Transfer agent’s fees and expenses 41,168 37,441 84,814 72,455 Insurance expense 43,104 43,104 86,317 86,208 Valuation services 751 30,488 34,617 63,116 General and administrative 1,646 44,233 25,778 85,456 Amortization of offering costs 45,366 128,585 50,673 276,328 Legal expense 34,835 68,269 37,981 140,686 Total Operating Expenses 727,587 1,074,598 1,458,755 2,074,554 Expense limitation payment (Note 4) (184,999) — (367,197) (183,386) Total Net Operating Expenses 542,588 1,074,598 1,091,558 1,891,168 Net Investment Income (Loss) 217,191 (203,503) 663,765 (172,028) Net Realized and Net Change in Unrealized (Losses) Gains on Investments Net realized gains (losses): Non-control/non-affiliate investments — — — 11,050 Net realized gains (losses) — — — 11,050 Net change in unrealized (losses) gains: Affiliate investments — 127,086 — 208,012 Non-control/non-affiliate investments (113,341) 1,088,250 (412,064) 1,471,907 Net change in unrealized (losses) gains (113,341) 1,215,336 (412,064) 1,679,919 Net Realized and Net Change in Unrealized (Losses) Gains on Investments (113,341) 1,215,336 (412,064) 1,690,969 Net Increase (Decrease) in Net Assets Resulting from Operations $ 103,850 $ 1,011,833 $ 251,701 $ 1,518,941 $ 0.04 $ 0.42 $ 0.11 $ 0.64 Distributions declared per share $ 0.16 $ 0.17 $ 0.32 $ 0.31 (1) For the three months ended December 31, 2021 and 2020, the weighted average common shares outstanding were 2,383,928 and 2,385,301, respectively.For the six months ended December 31, 2021 and 2020, the weighted average common shares outstanding were 2,384,784 and 2,373,291, respectively. THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016(Unaudited) Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 INVESTMENT INCOME Interest from affiliate investments $ — $ 9,540 $ 19,488 $ 27,994 Interest from non-control/ non-affiliate investments 198,075 104,933 536,481 264,444 Fee income from non-control/ non-affiliate investments 29,413 186 40,697 435 Total investment income 227,488 114,659 596,666 292,873 OPERATING EXPENSES Management fees 83,459 60,625 246,154 156,957 Capital gains incentive fees (see Notes 2 and 4) — 11,265 (334 ) 31,609 Administrator expense 70,495 78,840 213,473 242,332 Professional fees 99,062 33,694 214,914 105,259 Insurance expense 17,779 19,142 57,251 46,763 Other operating expenses 13,095 9,272 23,168 15,189 Total operating expenses 283,890 212,838 754,626 598,109 Expense reimbursement and management fee offsets from Adviser — (201,573 ) (80,847 ) (566,501 ) Net expenses 283,890 11,265 673,779 31,608 Net investment (loss)/ income (56,402 ) 103,394 (77,113 ) 261,265 REALIZED AND UNREALIZED GAIN/(LOSS) Net realized gain on non-affiliated investments 26,569 — 91,134 (1,167 ) Net increase (decrease) in unrealized appreciation on affiliate investments (88,923 ) — (1,350,763 ) 53,879 Net (decrease)/ increase in unrealized (depreciation)/ appreciation on non-control/ non-affiliate investments (42,474 ) 56,324 (99,262 ) 104,167 Total net realized and unrealized gain (loss) on investments (104,828 ) 56,324 (1,358,891 ) 156,879 NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ (161,230 ) $ 159,718 $ (1,436,004 ) $ 418,144 PER SHARE INFORMATION - Basic and Diluted Net increase (decrease) in net assets resulting from operations per share $ (0.13 ) $ 0.19 $ (1.26 ) $ 0.57 Weighted average common shares outstanding - basic and diluted 1,266,225 827,457 1,143,880 731,866 The accompanyingare an integral part of theseto consolidated financial statements.4StatementS ofSTATEMENTS OF CHANGES IN NET ASSETSNINE MONTHS ended SEPTEMBER 30, 2017 AND 2016Common Stock For the Three Months Ended December 31, 2021 Shares Par Paid-in Capital in
Excess of ParDistributable
Earnings
(Loss)Net Assets Balance as of September 30, 2021 2,385,760 $ 2,386 $ 24,816,684 $ (5,110,845) $ 19,708,225 Net increase in net assets resulting from operations Net investment income (loss) — — — 217,191 217,191 Net change in unrealized (losses) gains on investments — — — (113,341) (113,341) Distributions from earnings — — — (93,141) (93,141) Return of capital distributions — — (279,645) — (279,645) Capital Transactions Shares issued through reinvestment of distributions (Note 3) 20,627 21 170,520 — 170,541 Repurchase of common shares (Note 3) (24,286) (24) (200,097) — (200,121) Tax Reclassification of Net Assets (Note 6) — — (318,847) 318,847 — Total Increase (Decrease) for the three months ended December 31, 2021 (3,659) (3) (628,069) 329,556 (298,516) Balance as of December 31, 2021 2,382,101 $ 2,383 $ 24,188,615 $ (4,781,289) $ 19,409,709 Common Stock For the Three Months Ended December 31, 2020 Shares Par Paid-in Capital in
Excess of ParDistributable
Earnings
(Loss)Total Net Assets Balance as of September 30, 2020 2,384,793 $ 2,385 $ 26,970,191 $ (7,088,874) $ 19,883,702 Net decrease in net assets resulting from operations Net investment income (loss) — — — (203,503) (203,503) Net change in unrealized gains (losses) on investments — — — 1,215,336 1,215,336 Distributions from earnings — — — 49,157 49,157 Return of capital distributions — — (438,000) — (438,000) Capital Transactions Shares issued 3,318 3 29,997 — 30,000 Commissions and fees on shares sold — — (1,803) — (1,803) Shares issued through reinvestment of distributions 23,548 24 200,333 — 200,357 Repurchase of common shares (26,986) (27) (229,086) — (229,113) Tax Reclassification of Net Assets (Note 6) — — (579,507) 579,507 — Total Increase (Decrease) for the three months ended December 31, 2020 (120) — (1,018,066) 1,640,497 622,431 Balance as of December 31, 2020 2,384,673 $ 2,385 $ 25,952,125 $ (5,448,377) $ 20,506,133 (1) Certain reclassifications have been made in the presentation of prior year or quarter amounts to conform to the presentation for the current fiscal year or quarter. In addition, we have not yet finalized return of capital estimates for the current period. See Note 2 and 6 within the accompanying notes to the consolidated financial statements for further discussion. (Unaudited) Nine months ended September 30, 2017 2016 Operations Net investment income (loss) $ (77,113 ) $ 261,264 Net realized gain (loss) on investments 91,134 (1,167 ) Net increase (decrease) in unrealized appreciation (depreciation) on investments (1,450,025 ) 158,046 Net increase (decrease) in net assets resulting from operations (1,436,004 ) 418,143 Stockholder distributions (see Note 5) Distributions from net investment income (341,207 ) (285,469 ) Distributions from net realized gain on investments (59,732 ) — Net decrease in net assets resulting from stockholder distributions (400,939 ) (285,469 ) Capital share transactions Issuance of common stock (see Note 3) 4,817,586 4,670,733 Reinvestment of stockholder distributions (see Note 3) 214,336 155,067 Repurchase of shares of common stock (217,307 ) (117,060 ) Net increase in net assets resulting from capital share transactions 4,814,615 4,708,740 Total increase in net assets 2,977,672 4,841,414 Net assets at beginning of period 13,228,702 7,326,653 Net assets at end of period $ 16,206,374 $ 12,168,067 Accumulated overdistributed net investment income $ (431,069 ) $ (50,571 ) Accumulated undistributed net realized gains $ 14,444 $ 1,025 The accompanyingare an integral part of theseto consolidated financial statements.5 Triton Pacific Investment Corporation, Inc.Statements ofSTATEMENTS OF CHANGES IN NET ASSETSCommon Stock For the Six Months Ended December 31, 2021 Shares Par Paid-in Capital in
Excess of ParDistributable
Earnings
(Loss)Net Assets Balance as of June 30, 2021 2,386,057 $ 2,386 $ 25,000,327 $ (5,054,906) $ 19,947,807 Net increase in net assets resulting from operations Net investment income (loss) — — — 663,765 663,765 Net change in unrealized (losses) gains on investments — — — (412,064) (412,064) Distributions to Shareholders (Note 5)(1) Distributions from earnings — — — (296,931) (296,931) Return of capital distributions — — (462,038) — (462,038) Capital Transactions Shares issued through reinvestment of distributions (Note 3) 44,411 45 369,841 — 369,886 Repurchase of common shares (Note 3) (48,367) (48) (400,668) — (400,716) Tax Reclassification of Net Assets (Note 6) — — (318,847) 318,847 — Total Increase (Decrease) for the six months ended December 31, 2021 (3,956) (3) (811,712) 273,617 (538,098) Balance as of December 31, 2021 2,382,101 $ 2,383 $ 24,188,615 $ (4,781,289) $ 19,409,709 (1) Certain reclassifications have been made in the presentation of prior year and prior quarter amounts to conform to the presentation for the current fiscal year. In addition, we have not yet finalized return of capital estimates for the current period. See Note 2 and 6 within the accompanying notes to the consolidated financial statements for further discussion. Common Stock For the Six Months Ended December 31, 2020 Shares Par Paid-in Capital in
Excess of ParDistributable
Earnings
(Loss)Total Net Assets Balance as of June 30, 2020 2,363,011 $ 2,363 $ 27,133,944 $ (7,577,907) $ 19,558,400 Net decrease in net assets resulting from operations Net investment income (loss) — — — (172,028) (172,028) Net realized gains (losses) on investments — — — 11,050 11,050 Net change in unrealized gains (losses) on investments — — — 1,679,919 1,679,919 Distributions from earnings — — — 30,720 30,720 Return of capital distributions — — (789,166) — (789,166) Capital Transactions Shares issued 31,133 31 280,969 — 281,000 Commissions and fees on shares sold — — (16,862) — (16,862) Shares issued through reinvestment of distributions 46,301 47 389,654 — 389,701 Repurchase of common shares (55,772) (56) (466,545) — (466,601) Tax Reclassification of Net Assets (Note 6) — — (579,869) 579,869 — Total Increase (Decrease) for the six months ended December 31, 2020 21,662 22 (1,181,819) 2,129,530 947,733 Balance as of December 31, 2020 2,384,673 $ 2,385 $ 25,952,125 $ (5,448,377) $ 20,506,133 (1) Certain reclassifications have been made in the presentation of prior year and prior quarter amounts to conform to the presentation for the current fiscal year. In addition, we have not yet finalized return of capital estimates for the current period. See Note 2 and 6 within the accompanying notes to the consolidated financial statements for further discussion. NINE MONTHS ENDED SEPTEMBER 30, 2017 AND 2016(Unaudited) Nine months ended September 30, 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net (decrease)/ increase in net assets resulting from operations $ (1,436,004 ) $ 418,143 Adjustments to reconcile net (decrease)/ increase in net assets resulting from operations to net cash used by operating activities Purchases of investments (6,118,500 ) (3,470,750 ) Proceeds from sales and repayments of investments 3,921,509 220,384 Net realized gain (loss) from investments (91,134 ) 1,167 Net increase (decrease) in unrealized appreciation (depreciation) on investments 1,450,025 (158,046 ) Accretion of discount (23,918 ) (11,985 ) Net increase in paid-in-kind interest (19,488 ) (27,997 ) Increases and decreases in assets and liabilities Principal and interest receivable (7,301 ) (14,569 ) Prepaid expenses (21,803 ) (32,182 ) Reimbursement due from Adviser (224,004 ) 32,675 Payable for investments purchased 175,875 336,000 Accounts payable and accrued liabilities 115,248 — Due to related parties (31,874 ) 42,614 NET CASH USED BY OPERATING ACTIVITIES (2,311,369 ) (2,664,546 ) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stock 4,817,586 4,670,733 Payments on repurchases of shares of common stock (217,307 ) (117,060 ) Stockholder distributions (186,603 ) (130,403 ) Increases in distributions payable (16,574 ) 2,705 NET CASH PROVIDED BY FINANCING ACTIVITIES 4,397,102 4,425,975 NET INCREASE IN CASH 2,085,733 1,761,429 CASH - BEGINNING OF PERIOD $ 3,788,901 $ 1,812,341 CASH - END OF PERIOD $ 5,874,634 $ 3,573,770 Supplemental schedule of non-cash investing activities Reinvestment of stockholder distributions $ 214,336 $ 155,067 The accompanyingSix Months Ended December 31, 2021 2020 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations $ 251,701 $ 1,518,941 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Amortization of offering costs 50,673 276,328 Purchases of investments (10,236,250) (1,274,290) Repayments and sales of portfolio investments 10,114,598 1,105,458 Net change in unrealized (gains) losses on investments 412,064 (1,679,919) Net realized losses (gains) on investments — (11,050) Accretion of purchase discount on investments, net (120,338) (211,784) Amortization of deferred financing costs 29,635 29,635 Payment-in-kind interest (385) (15,155) Changes in other assets and liabilities: (Increase) Decrease in operating assets Receivable for investments sold — 381,075 Receivable for repayments of portfolio investments 6,465 (48,519) Interest receivable (67,146) (62,014) Deferred offering costs (Note 4) (50,673) (185,637) Prepaid expenses and other assets 149,020 28,152 Increase (Decrease) in operating liabilities Due to Adviser (Note 4) (44,223) 184,345 Accrued expenses (41,599) 65,171 Accrued legal fees (28,690) 43,579 Accrued audit fees (2,853) (64,550) Due to Administrator (Note 4) (50,611) 126,624 Payable for investments purchased 2,000,000 (690,000) Due to Affiliates (Note 4) (23,258) 10,887 Interest payable 1,523 (2,221) Net cash provided by (used in) operating activities 2,349,653 (474,944) Cash flows from financing activities: Gross proceeds from shares issued (Note 3) — 281,000 Commissions and fees on shares issued — (16,862) Distributions paid to stockholders (380,992) (359,815) Repurchase of common shares (400,716) (466,601) Net cash (used in) provided by financing activities (781,708) (562,278) Net increase (decrease) in cash 1,567,945 (1,037,222) Cash at beginning of period 3,139,929 3,602,662 Cash at end of period $ 4,707,874 $ 2,565,440 Supplemental disclosures: Cash paid for interest $ 252,913 $ 264,038 Non-cash financing activities: Value of shares issued through reinvestment of distributions $ 369,885 $ 389,701 are an integral part of theseto consolidated financial statements.6 SEPTEMBERDECEMBER 31, 2021December 31, 2021 Portfolio Company /
Security TypeIndustry Acquisition
DateCoupon/Yield (b) Floor Legal
MaturityPrincipal/
QuantityAmortized Cost (d) Fair Value (c) % of Net Assets Non-Control/Non-Affiliate Investments (less than 5.00% voting control): Banking, Finance, Insurance & Real Estate 2/6/2020 1ML+4.00% (4.10%) — 3/18/2027 $ 738,872 $ 737,836 $ 738,872 3.81 % Services: Consumer 7/27/2017 3ML+6.75% (7.75%) 1.00 7/31/2023 969,272 934,004 811,765 4.18 % Media: Broadcasting & Subscription 12/16/2021 3ML+5.25% (5.75%) 0.50 12/21/2028 2,000,000 2,000,000 2,000,000 10.30 % High Tech Industries 7/21/2021 3ML+3.50% (4.50%) 1.00 12/2/2024 497,409 497,409 497,409 2.56 % Automotive 3/24/2021 1ML+5.00% (6.00%) 1.00 3/30/2027 1,240,625 1,229,695 1,240,606 6.39 % Telecommunications 4/5/2019 1ML+4.25% (4.35%) — 11/28/2025 1,944,395 1,904,162 1,944,381 10.02 % Healthcare & Pharmaceuticals 4/10/2019 3ML+5.25% (6.25%) 1.00 5/1/2024 2,044,710 2,029,339 2,044,710 10.53 % High Tech Industries 9/17/2017 1ML+3.75% (3.85%) — 9/30/2024 183,591 182,333 183,969 0.95 % Consumer goods: Durable 2/26/2020 1ML+5.25% (6.25%) plus 0.75% PIK 1.00 5/29/2025 579,934 575,045 579,934 2.99 % Healthcare & Pharmaceuticals 11/22/2021 1ML+4.25% (4.25%) 0.75 2/15/2025 1,496,173 1,492,516 1,497,857 7.72 % Beverage, Food & Tobacco 3/16/2018 1ML+7.00% (8.00%) 1.00 3/21/2025 481,250 475,750 474,936 2.45 % Consumer goods: Durable 7/27/2021 3M + 3.50% (4.25) 0.75 7/28/2028 1,995,000 1,990,290 1,995,000 10.28 % Services: Business 4/2/2019 3ML+5.50% (6.50%) 1.00 12/20/2024 1,950,488 1,950,488 1,950,488 10.05 % Consumer goods: Non-Durable 5/26/2021 1M + 4.75% (5.50) 0.75 6/1/2028 995,000 985,797 995,000 5.13 % High Tech Industries 4/2/2019 1ML+4.25% (4.35%) — 11/28/2025 2,044,322 2,032,159 2,036,022 10.49 % Telecommunications 7/31/2019 3ML+4.50% (5.50%) 1.00 11/1/2024 1,949,239 1,848,883 1,932,400 9.95 % Media: Diversified and Production 7/1/2021 3ML+5.00% (5.75%) 0.75 9/25/2026 1,980,000 1,970,794 1,976,488 10.18 % Services: Consumer 3/12/2021 3ML+5.50% (6.25%) 0.75 3/17/2026 1,841,910 1,825,011 1,841,889 9.49 % Wholesale 11/18/2019 3ML+5.00% (5.13%) — 4/16/2026 1,959,799 1,941,741 1,906,444 9.82 % Services: Consumer 7/22/2021 1ML+4.25% (4.35%) — 11/20/2026 1,243,750 1,243,750 1,243,750 6.41 % Healthcare & Pharmaceuticals 4/2/2019 3ML+5.50% (5.63%) — 10/1/2025 2,044,182 2,015,306 2,044,182 10.53 % Total Senior Secured Loans-First Lien $ 29,862,308 $ 29,936,102 154.23 % Retail 2/7/2019 7.00% (6.00% PIK plus 1.00% cash) — 1/31/2025 $ 12,786 $ 10,704 $ 12,467 0.07 % Media: Advertising, Printing & Publishing 4/25/2017 3ML+8.00% (9.00%) 1.00 5/1/2025 500,000 495,768 501,250 2.58 % Total Senior Secured Loans-Second Lien $ 506,472 $ 513,717 2.65 % CURO Group Holdings Corp. Financial 11/18/2021 7.50 % N/A 8/1/2028 $ 1,000,000 $ 1,004,942 $ 1,009,159 5.20 % Total Senior Secured Notes $ 1,004,942 $ 1,009,159 5.20 % Apidos CLO XXIV Structured Finance 5/17/2019 19.43 % N/A 10/20/2030 $ 250,000 $ 158,134 $ 162,096 0.84 % Apidos CLO XXVI Structured Finance 7/25/2019 15.73 % N/A 7/18/2029 250,000 187,835 195,788 1.01 % California CLO IX, Ltd. Structured Finance 12/13/2019 25.08 % N/A 7/16/2032 500,000 231,686 247,434 1.28 % Carlyle Global Market Strategies CLO 2014-4-R, Ltd. Structured Finance 4/7/2017 11.49 % N/A 7/15/2030 250,000 188,149 161,719 0.83 % Carlyle Global Market Strategies CLO 2017-5, Ltd. Structured Finance 12/18/2017 9.46 % N/A 1/22/2030 500,000 460,123 410,233 2.11 % December 31, 2021 Portfolio Company /
Security TypeIndustry Acquisition
DateCoupon/Yield (b) Floor Legal
MaturityPrincipal/
QuantityAmortized Cost (d) Fair Value (c) % of Net Assets Galaxy XIX CLO, Ltd. Structured Finance 12/5/2016 15.88 % N/A 7/24/2030 250,000 180,270 130,873 0.67 % GoldenTree Loan Opportunities IX, Ltd. Structured Finance 7/19/2017 4.28 % N/A 10/29/2029 $ 250,000 $ 187,833 $ 156,018 0.80 % Madison Park Funding XIII, Ltd. Structured Finance 11/6/2015 10.16 % N/A 4/22/2030 250,000 162,746 172,169 0.89 % Madison Park Funding XIV, Ltd. Structured Finance 11/16/2015 12.71 % N/A 10/22/2030 250,000 185,579 153,472 0.79 % Octagon Investment Partners XIV, Ltd. Structured Finance 12/1/2017 8.74 % N/A 7/16/2029 850,000 512,253 422,235 2.18 % Octagon Investment Partners XV, Ltd. Structured Finance 5/23/2019 16.52 % N/A 7/19/2030 500,000 295,697 285,125 1.47 % Structured Finance 1/6/2016 14.28 % N/A 2/14/2031 387,538 241,342 189,328 0.98 % Octagon Investment Partners 30, Ltd. Structured Finance 11/16/2017 12.76 % N/A 3/17/2030 475,000 420,254 375,347 1.93 % Octagon Investment Partners 31, Ltd. Structured Finance 12/20/2019 27.46 % N/A 7/20/2030 250,000 163,407 165,814 0.85 % Octagon Investment Partners 36, Ltd. Structured Finance 12/20/2019 20.81 % N/A 4/15/2031 500,000 397,100 374,437 1.93 % Octagon Investment Partners 39, Ltd. Structured Finance 1/9/2020 20.79 % N/A 10/21/2030 250,000 193,249 209,044 1.08 % Structured Finance 1/17/2017 — % N/A 4/30/2027 275,000 163,188 66,916 0.34 % Sound Point CLO II, Ltd. Structured Finance 5/16/2019 12.09 % N/A 1/26/2031 1,500,000 816,738 679,906 3.50 % Sound Point CLO VII-R, Ltd. Structured Finance 8/23/2019 19.86 % N/A 10/23/2031 150,000 60,806 50,681 0.26 % Sound Point CLO XVIII, Ltd. Structured Finance 5/16/2019 11.65 % N/A 1/21/2031 250,000 219,862 195,261 1.01 % THL Credit Wind River 2013-1 CLO, Ltd. Structured Finance 11/1/2017 3.26 % N/A 7/22/2030 325,000 240,846 182,680 0.94 % Venture XXXIV CLO, Ltd. Structured Finance 7/30/2019 16.93 % N/A 10/15/2031 250,000 212,753 193,479 1.00 % Structured Finance 6/9/2016 9.30 % N/A 10/15/2030 278,312 188,745 151,415 0.78 % Voya CLO 2016-1, Ltd. Structured Finance 1/22/2016 13.49 % N/A 1/21/2031 250,000 205,437 200,173 1.03 % Total Structured Subordinated Notes $ 6,274,032 $ 5,531,643 28.50 %
L.L.C. (h)Healthcare & Pharmaceuticals 4/30/2015 N/A N/A N/A 472,357 $ 472,357 $ 682,000 3.51 % Retail 2/7/2019 N/A N/A N/A 72 $ 208,754 $ — — % Total Equity/Other $ 681,111 $ 682,000 3.51 % Total Portfolio Investments $ 38,328,865 $ 37,672,621 194.09 % 2017(UNAUDITED)Portfolio Company Footnotes Industry Rate (b) Floor Maturity Principal Amount/ Number of Shares Amortized Cost(f) Fair Value(c) Senior Secured Loans—First Lien—47.03% LSF9 Atlantis Holdings, LLC Telecommunications L+6.00% (7.24%) 1.24 % 5/1/2023 496,875 $ 492,146 $ 499,876 California Pizza Kitchen, Inc. Beverage, Food & Tobacco L+6.00% (7.24%) 1.24 % 8/19/2022 346,500 343,659 344,191 CareCentrix, Inc. Healthcare & Pharmaceuticals L+5.00% (6.33%) 1.33 % 7/8/2021 196,000 192,617 197,593 CareerBuilder Business Services L+6.75% (8.08%) 1.33 % 7/27/2023 500,000 485,390 489,793 Coronado Group LLC Metals & Mining L+7.00% (8.33%) 1.33 % 6/6/2023 498,750 484,503 503,738 CRCI Holdings, Inc. Business Services L+5.50% (6.83%) 1.33 % 8/31/2023 324,564 321,612 326,795 Deluxe Entertainment Services Group, Inc. Media: Diversified and Production L+5.50% (6.81%) 1.31 % 2/28/2020 343,112 335,523 345,471 FHC Health Systems, Inc. Healthcare & Pharmaceuticals L+4.00% (5.24%) 1.24 % 12/23/2021 121,875 121,168 119,183 Flavors Holdings, Inc. Tranche B Beverage, Food & Tobacco L+5.75% (7.08%) 1.33 % 4/3/2020 106,250 104,000 101,203 GK Holdings, Inc. Business Services L+6.00% (7.33%) 1.33 % 1/20/2021 121,563 121,045 114,877 IG Investments Holdings, LLC Business Services L+4.00% (5.33%) 1.33 % 10/29/2021 345,543 344,153 349,287 InfoGroup Inc. Business Services L+5.00% (6.33%) 1.33 % 3/28/2023 497,500 492,911 486,928 Jackson Hewitt, Inc. Business Services L+7.00% (8.31%) 1.31 % 7/30/2020 186,138 183,700 180,089 McAfee LLC Business Services L+4.50% (5.83%) 1.33 % 9/27/2024 250,000 247,500 251,469 Moran Foods, LLC Beverage, Food & Tobacco L+6.00% (7.24%) 1.24 % 12/5/2023 347,375 338,119 319,585 Paradigm Acquisition Corp. Healthcare & Pharmaceuticals L+5.00% (6.42%) 1.42 % 6/2/2022 122,188 120,735 122,798 Pre-Paid Legal Services, Inc Consumer Services L+5.25% (6.50%) 1.25 % 7/1/2019 320,191 319,563 323,092 Raley’s Beverage, Food & Tobacco L+5.25% (6.49%) 1.24 % 5/18/2022 288,431 288,431 291,676 Sahara Parent Inc Business Services L+5.00% (6.31%) 1.31 % 8/16/2024 350,000 346,532 343,875 SITEL Worldwide Corporation Business Services L+5.50% (6.81%) 1.31 % 9/20/2021 196,000 195,530 196,294 Strike, LLC Energy: Oil & Gas L+8.00% (9.33%) 1.33 % 11/30/2022 336,875 327,876 341,928 Travel Leaders Group, LLC Hotel, Gaming & Leisure L+4.50% (5.81%) 1.31 % 1/25/2024 348,252 346,677 353,478 TruGreen Limited Partnership Consumer Services L+4.00% (5.24%) 1.24 % 4/13/2023 346,500 342,323 351,264 Verdesian Life Sciences LLC Wholesale Trade-Nondurable Goods L+5.00% (6.31%) 1.31 % 7/1/2020 208,335 207,172 162,501 Wirepath LLC Consumer Services L+5.25% (6.56%) 1.31 % 8/5/2024 500,000 497,500 504,063 Total Senior Secured Loans—First Lien $ 7,698,817 $ 7,600,385 $ 7,621,047 Senior Secured Loans—Second Lien—20.70% Flavors Holdings, Inc. Beverage, Food & Tobacco L+10.00% (11.33%) 1.33 % 10/7/2021 125,000 122,161 93,438 FullBeauty Brands Holding High Tech Industries L+9.00% (10.24%) 1.24 % 10/13/2023 250,000 218,743 114,688 GK Holdings, Inc. Business Services L+10.25% (11.55%) 1.33 % 1/21/2022 125,000 123,468 118,750 Inmar Business Services L+8.00% (9.27%) 1.27 % 5/1/2025 500,000 492,866 502,813 McAfee LLC Business Services L+8.50% (9.83%) 1.33 % 9/26/2025 500,000 492,500 502,293 Neustar, Inc. High Tech Industries L+8.00% (9.31%) 1.31 % 2/28/2025 750,000 738,862 761,250 NPC International, Inc. Beverage, Food & Tobacco L+7.50 (8.74%) 1.24 % 3/28/2025 500,000 497,896 508,438 Oxbow Carbon LLC Metals & Mining L+7.00 (8.24%) 1.24 % 1/19/2020 250,000 239,541 251,094 Rocket Software, Inc. Business Services L+9.50% (10.83%) 1.33 % 10/14/2024 500,000 491,229 501,875 Total Senior Secured Loans—Second Lien $ 3,500,000 $ 3,417,266 $ 3,354,639 The2021 were $30,437,532 and $30,361,804, respectively, representing 81% and 80% of our total investments, respectively.are an integral partto the consolidated financial statements.these statements.7 Portfolio Company Footnotes Industry Rate (b) Floor Maturity Principal Amount/ Number of Shares Amortized Cost(f) Fair Value(c) Subordinated Convertible Debt—0.00% Javlin Capital LLC Subordinated Convertible Note (a) (e) Specialty Finance 6.00 % 3/31/2020 666,389 666,389 — Total Subordinated Convertible Debt $ 666,389 $ 666,389 $ — Equity/Other—3.15% ACON IWP Investors I, L.L.C. (a) Healthcare & Pharmaceuticals 500,000 500,000 509,993 Javlin Capital LLC Class C-2 Preferred Units (a) (d) (e) Specialty Finance 214,286 750,000 — Total Equity/Other 714,286 $ 1,250,000 $ 509,993 TOTAL INVESTMENTS—70.88% $ 12,934,040 $ 11,485,679 OTHER ASSETS IN EXCESS OF LIABILITIES—29.12% $ 4,720,695 NET ASSETS - 100.0% $ 16,206,374 (a)AffiliatedPortfolio Company Investment Follow-On Acquisition Dates Follow-On Acquisitions (Excluding initial investment cost) Amerilife Holdings, LLC Senior Secured Loans-First Lien 11/2/2020 85,227 CareerBuilder Senior Secured Loans-First Lien 6/5/2020 690,000 Global Tel*Link Corporation Senior Secured Loans-First Lien 7/9/2019, 7/16/2019 1,436,250 Keystone Acquisition Corp. Senior Secured Loans-First Lien 4/23/2019, 8/2/2019 1,576,000 Octagon Investment Partners XXI, Ltd. Structured Subordinated Notes 2/14/2019 35,015 Rocket Software, Inc. Senior Secured Loans-First Lien 6/28/2019, 7/30/2019 1,327,272 Securus Technologies Holdings, Inc. Senior Secured Loans-First Lien 8/2/2019 908,750 Staples, Inc. Senior Secured Loans-First Lien 2/3/2020 980,031 Voya IM CLO 2013-1, Ltd. Structured Subordinated Notes 10/17/2017, 7/1/2019 20,584 Wellpath Holdings, Inc. (formally known as defined by the 1940 Act, whereby the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities and the investments are not classified as controlled investments.Affiliated funds that are managed by an affiliate of Triton Pacific Adviser, LLC also hold investments in this security. The aggregate fair value of non-controlled, affiliated investments at September 30, 2017 represented 3.15% of the Company’s net assets. Fair value as of December 31, 2016 along with transactions during the period ended September 30, 2017 in affiliated investments were as follows):Correct Care Solutions Group Holdings, LLC)Senior Secured Loans-First Lien 4/10/2019, 7/25/2019 1,327,000 Nine months ended September 30, 2017 Non-controlled, Affiliated Investments Fair Value at December 31, 2016 Gross Additions (Cost)* Gross Reductions (Cost)** Fair Value at September 30, 2017 Net Realized Gain (Loss) Interest & Dividends Credited to Income ACON IWP Investors I, L.L.C. $ 691,072 $ — $ — $ 509,993 $ — $ — Javlin Capital, LLC, Convertible Note 646,901 19,488 — — — 19,488 Javlin Capital, LLC, C-2 Preferred Units 537,229 — — — — — Total $ 1,875,202 $ 19,488 $ — $ 509,993 $ — $ 19,488 *Gross additions include increasesJune 30, 2021 Portfolio Company /
Security TypeIndustry Acquisition
DateCoupon/Yield (b) Floor Legal
MaturityPrincipal/
QuantityAmortized Cost (d) Fair Value (c) % of Net Assets Non-Control/Non-Affiliate Investments (less than 5.00% voting control): Banking, Finance, Insurance & Real Estate 2/6/2020 1ML+4.00% (4.10%) — 3/18/2027 $ 742,613 $ 741,476 $ 742,613 3.72 % Services: Consumer 7/27/2017 3ML+6.75% (7.75%) 1.00 7/31/2023 969,272 922,758 924,928 4.64 % Healthcare & Pharmaceuticals 4/2/2019 1ML+5.50% (5.60%) — 10/1/2025 2,054,719 2,021,964 2,054,719 10.30 % Media: Broadcasting & Subscription 5/14/2019 6ML+5.00% (5.20%) — 5/21/2026 1,960,000 1,937,073 1,960,000 9.83 % Automotive 3/24/2021 1ML+5.00% (6.00%) 1.00 3/30/2027 1,246,875 1,234,894 1,246,875 6.25 % Telecommunications 4/5/2019 1ML+4.25% (4.35%) — 11/28/2025 1,944,395 1,898,977 1,944,395 9.75 % Healthcare & Pharmaceuticals 4/10/2019 3ML+5.25% (6.25%) 1.00 5/1/2024 2,055,387 2,036,697 2,055,387 10.30 % High Tech Industries 9/17/2017 1ML+3.75% (3.85%) — 9/30/2024 214,334 212,845 214,616 1.08 % Consumer goods: Durable 2/26/2020 1ML+5.25% (6.25%) plus 0.75% PIK 1.00 5/29/2025 717,672 712,061 717,672 3.60 % Services: Consumer 4/2/2019 3ML+5.25% (6.25%) plus 4.25% PIK 1.00 9/29/2023 1,959,852 1,916,525 1,959,852 9.82 % Beverage, Food & Tobacco 3/16/2018 3ML+7.00% (8.00%) 1.00 3/21/2025 483,750 477,390 477,856 2.40 % Services: Business 4/2/2019 3ML+5.50% (6.50%) 1.00 12/20/2024 1,960,647 1,960,647 1,960,647 9.83 % Consumer goods: Non-Durable 5/26/2021 1M + 4.75% (5.50) 0.75 6/1/2028 1,000,000 990,075 1,003,440 5.03 % High Tech Industries 4/2/2019 1ML+4.25% (4.35%) — 11/28/2025 2,054,832 2,041,101 2,020,640 10.13 % Telecommunications 7/31/2019 3ML+4.50% (5.50%) 1.00 11/1/2024 1,959,391 1,841,211 1,911,200 9.58 % Media: Diversified and Production 11/14/2019 1ML+6.00% (7.00%) 1.00 9/25/2026 1,601,935 1,461,047 1,601,900 8.03 % Services: Consumer 3/12/2021 3ML+5.50% (6.25%) 0.75 3/17/2026 1,950,000 1,931,078 1,950,000 9.77 % Wholesale 11/18/2019 3ML+5.00% (5.18%) — 4/16/2026 1,969,849 1,949,670 1,930,444 9.68 % Transportation: Cargo 4/10/2019 3ML+3.75% (4.75%) 1.00 10/7/2024 1,470,870 1,457,657 1,470,870 7.37 % Services: Consumer 10/24/2019 1ML+4.50% (4.60%) — 11/20/2026 1,728,125 1,721,374 1,728,125 8.66 % Total Senior Secured Loans-First Lien $ 29,466,520 $ 29,876,179 149.77 % Retail 2/7/2019 7.00% (6.00% PIK plus 1.00% cash) — 1/31/2025 $ 12,401 $ 10,319 $ 10,231 0.05 % Media: Advertising, Printing & Publishing 4/25/2017 3ML+8.00% (9.00%) 1.00 5/1/2025 500,000 495,129 485,625 2.44 % Total Senior Secured Loans-Second Lien $ 505,448 $ 495,856 2.49 % Financial 12/8/2017 12.00 % N/A 12/15/2022 $ 1,000,000 $ 973,876 $ 951,073 4.77 % Total Senior Secured Notes $ 973,876 $ 951,073 4.77 % Apidos CLO XXIV Structured Finance 5/17/2019 21.44 % N/A 10/20/2030 $ 250,000 $ 162,512 $ 164,370 0.82 % Apidos CLO XXVI Structured Finance 7/25/2019 18.15 % N/A 7/18/2029 250,000 182,953 193,258 0.97 % California CLO IX, Ltd. Structured Finance 12/13/2019 29.32 % N/A 7/16/2032 500,000 214,997 243,934 1.22 % Carlyle Global Market Strategies CLO 2014-4-R, Ltd. Structured Finance 4/7/2017 16.92 % N/A 7/15/2030 250,000 196,354 165,110 0.83 % Carlyle Global Market Strategies CLO 2017-5, Ltd. Structured Finance 12/18/2017 13.16 % N/A 1/22/2030 500,000 477,445 415,738 2.08 % Galaxy XIX CLO, Ltd. Structured Finance 12/5/2016 17.22 % N/A 7/24/2030 250,000 181,178 122,721 0.62 % June 30, 2021 Portfolio Company /
Security TypeIndustry Acquisition
DateCoupon/Yield (b) Floor Legal
MaturityPrincipal/
QuantityAmortized Cost (d) Fair Value (c) % of Net Assets GoldenTree Loan Opportunities IX, Ltd. Structured Finance 7/19/2017 11.44 % N/A 10/29/2029 $ 250,000 $ 194,348 $ 160,523 0.81 % Madison Park Funding XIII, Ltd. Structured Finance 11/6/2015 22.71 % N/A 4/22/2030 250,000 176,881 182,378 0.91 % Madison Park Funding XIV, Ltd. Structured Finance 11/16/2015 15.75 % N/A 10/22/2030 250,000 191,936 152,925 0.77 % Octagon Investment Partners XIV, Ltd. Structured Finance 12/1/2017 17.26 % N/A 7/16/2029 850,000 548,981 425,828 2.14 % Octagon Investment Partners XV, Ltd. Structured Finance 5/23/2019 19.24 % N/A 7/19/2030 500,000 295,531 301,532 1.51 % Structured Finance 1/6/2016 18.50 % N/A 2/14/2031 387,538 242,802 189,567 0.95 % Octagon Investment Partners 30, Ltd. Structured Finance 11/16/2017 15.78 % N/A 3/17/2030 475,000 436,656 373,970 1.88 % Octagon Investment Partners 31, Ltd. Structured Finance 12/20/2019 33.81 % N/A 7/20/2030 250,000 164,927 164,771 0.83 % Octagon Investment Partners 36, Ltd. Structured Finance 12/20/2019 25.78 % N/A 4/15/2031 500,000 411,382 382,619 1.92 % Octagon Investment Partners 39, Ltd. Structured Finance 1/9/2020 25.81 % N/A 10/21/2030 250,000 195,800 215,961 1.08 % Structured Finance 1/17/2017 — % N/A 4/30/2027 275,000 168,016 100,634 0.51 % Sound Point CLO II, Ltd. Structured Finance 5/16/2019 17.17 % N/A 1/26/2031 1,500,000 846,273 685,939 3.44 % Sound Point CLO VII-R, Ltd. Structured Finance 8/23/2019 20.89 % N/A 10/23/2031 150,000 60,276 50,161 0.25 % Sound Point CLO XVIII, Ltd. Structured Finance 5/16/2019 15.38 % N/A 1/21/2031 250,000 227,964 200,000 1.00 % THL Credit Wind River 2013-1 CLO, Ltd. Structured Finance 11/1/2017 7.94 % N/A 7/22/2030 325,000 259,992 182,249 0.91 % Venture XXXIV CLO, Ltd. Structured Finance 7/30/2019 20.16 % N/A 10/15/2031 250,000 214,879 197,375 0.99 % Structured Finance 6/9/2016 11.97 % N/A 10/15/2030 278,312 195,490 150,460 0.75 % Voya CLO 2016-1, Ltd. Structured Finance 1/22/2016 16.99 % N/A 1/21/2031 250,000 211,962 204,179 1.01 % Total Structured Subordinated Notes $ 6,459,535 $ 5,626,202 28.20 %
L.L.C. (h) (p)Healthcare & Pharmaceuticals 4/30/2015 N/A N/A N/A 472,357 $ 472,357 $ 893,000 4.48 % Retail 2/7/2019 N/A N/A N/A 72 $ 208,754 $ — — % Total Equity/Other $ 681,111 $ 893,000 4.48 % Total Portfolio Investments $ 38,086,490 $ 37,842,310 189.71 % resultingas of June 30, 2021, 16% are non-qualifying assets as a percentage of total assets.new portfoliothe underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield is calculated using amortized cost based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.Portfolio Company Investment Follow-On Acquisition Dates Follow-On Acquisitions (Excluding initial investment cost) Ace Cash Express, Inc. Senior Secured Notes 7/15/2019 $ 493,625 Amerilife Holdings, LLC Senior Secured Loans-First Lien 11/2/2020 85,227 CareerBuilder Senior Secured Loans-First Lien 6/5/2020 690,000 Correct Care Solutions Group Holdings, LLC Senior Secured Loans-First Lien 4/10/2019, 7/25/2019 1,327,000 Digital Room Holdings, Inc Senior Secured Loans-First Lien 7/16/2019 490,000 Global Tel*Link Corporation Senior Secured Loans-First Lien 7/9/2019, 7/16/2019 1,436,250 Keystone Acquisition Corp. Senior Secured Loans-First Lien 4/23/2019, 8/2/2019 1,576,000 Octagon Investment Partners XXI, Ltd. Structured Subordinated Notes 2/14/2019 35,015 PGX Holdings, Inc. Senior Secured Loans-First Lien 2/3/2021 1,350,000 Rocket Software, Inc. Senior Secured Loans-First Lien 6/28/2019, 7/30/2019 1,327,272 Securus Technologies Holdings, Inc. Senior Secured Loans-First Lien 8/2/2019 908,750 Shutterfly, Inc. Senior Secured Loans-First Lien 11/18/2019, 11/20/2019 1,361,250 Staples, Inc. Senior Secured Loans-First Lien 2/3/2020 980,031 Voya IM CLO 2013-1, Ltd. Structured Subordinated Notes 10/17/2017, 7/1/2019 20,584 amortizationinvestments qualify as restricted securities in accordance with Rule 12-12 of unearnedRegulation S-X.exchangeinvestment. Distributions, once received, will be recognized as return of one or more existing securities for one or more new securitiescapital, and when called, any remaining unamortized investment costs will be written off if the movement of an existing portfolio company into this category from a different category.**Gross reductions include decreases inactual distributions are less than the amortized investment cost. To the extent that the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities andSSN is fully recovered, any future distributions will be recorded as realized gains.movement of an existing portfolio company outyear ended June 30, 2021, the characterization of this category into a different category.(b)Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate spread.As of September 30, 2017, the three-month London Interbank Offered Rate, or LIBOR, was 1.33500%.(c)Fair value and market value are determined by the Company’s board of directors (see Note 7.)(d)Security held within TPJ Holdings, Inc., a wholly-owned subsidiary of the Company. See Note 2 for a dicussion on the basis of consolidation.(e)The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than a qualifying asset, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. As of September 30, 2017, 100% of the Company’s total assets represented qualifying assets.(f)See Note 5 for a discussion of the tax cost of the portfolio.The accompanying notes are an integral part of these statements. 8 TRITON PACIFIC INVESTMENT CORPORATION, INC.CONSOLIDATED SCHEDULE OF INVESTMENTSAS OF DECEMBER 31, 2016 Portfolio Company Footnotes Industry Rate(b) Base Rate Floor Maturity Principal Amount/ Number of Shares Amortized Cost(f) Fair Value(c) Senior Secured Loans—First Lien—51.11% California Pizza Kitchen, Inc. Beverage, Food & Tobacco L+6.00% (7.00%) 1.0 % 8/19/2022 $ 349,125 $ 345,842 $ 348,326 CareCentrix, Inc. Healthcare & Pharmaceuticals L+5.00% (6.00%) 1.0 % 7/8/2021 197,500 193,575 196,266 CRCI Holdings, Inc. Business Services L+5.50% (6.50%) 1.0 % 8/31/2023 349,125 345,794 349,851 Curo Health Services Holdings, Inc. Healthcare & Pharmaceuticals L+5.50% (6.50%) 1.0 % 2/7/2022 122,813 121,909 123,785 Deluxe Entertainment Services Group, Inc. Media: Diversified and Production L+6.00% (7.00%) 1.0 % 2/28/2020 350,000 340,080 347,375 FHC Health Systems, Inc. Healthcare & Pharmaceuticals L+4.00% (5.00%) 1.0 % 12/23/2021 122,812 121,970 119,742 Flavors Holdings, Inc. Tranche B Beverage, Food & Tobacco L+5.75% (6.75%) 1.0 % 4/3/2020 110,938 107,998 90,414 GK Holdings, Inc. Business Services L+5.50% (6.50%) 1.0 % 1/20/2021 122,500 121,847 121,888 Global Healthcare Exchange, LLC Healthcare & Pharmaceuticals L+4.25% (5.25%) 1.0 % 8/15/2022 148,132 148,140 149,583 GTCR Valor Companies, Inc. Business Services L+6.00% (7.00%) 1.0 % 6/16/2023 348,250 335,050 345,856 IG Investments Holdings, LLC Business Services L+5.00% (6.00%) 1.0 % 10/29/2021 348,187 346,539 351,146 Imagine Print Solutions, LLC Business Services L+6.00% (7.00%) 1.0 % 3/30/2022 248,125 244,986 252,467 Jackson Hewitt, Inc. Business Services L+7.00% (8.00%) 1.0 % 7/30/2020 196,000 193,020 189,385 Mister Car Wash, Inc. Automotive Repair, Services, and Parking L+4.25% (5.25%) 1.0 % 8/20/2021 121,875 121,036 122,459 Moran Foods, LLC Beverage, Food & Tobacco L+6.00% (7.00%) 1.0 % 12/5/2023 350,000 339,619 350,000 Paradigm Acquisition Corp. Healthcare & Pharmaceuticals L+5.00% (6.00%) 1.0 % 6/2/2022 123,125 121,537 122,560 Polycom, Inc. High Tech Industries L+6.50% (7.50%) 1.0 % 9/27/2023 338,479 324,979 341,441 Pre-Paid Legal Services, Inc Consumer Services L+5.25% (6.25%) 1.0 % 7/1/2019 350,000 349,125 351,750 Raley’s Beverage, Food & Tobacco L+6.25% (7.25%) 1.0 % 5/18/2022 295,823 295,823 299,151 Ranpak Corp. Paper and Allied Products L+3.25% (4.25%) 1.0 % 10/1/2021 114,506 114,297 115,294 SITEL Worldwide Corporation Business Services L+5.50% (6.50%) 1.0 % 9/20/2021 197,500 196,488 197,994 SiteOne Landscape Supply LLC Business Services L+4.50% (5.50%) 1.0 % 9/20/2021 347,379 344,506 350,094 SolarWinds, Inc. High Tech Industries L+4.50% (5.50%) 1.0 % 2/3/2023 248,750 236,913 252,237 Strike, LLC Energy: Oil & Gas L+3.75% (10.75%) 7.0 % 11/30/2022 350,000 339,692 346,500 TIBCO Software, Inc. High Tech Industries L+5.50% (6.50%) 1.0 % 12/4/2020 122,813 121,067 123,555 TruGreen Limited Partnership Consumer Services L+5.50% (6.50%) 1.0 % 4/13/2023 348,250 343,532 353,909 Verdesian Life Sciences LLC Wholesale Trade-Nondurable Goods L+5.00% (6.00%) 1.0 % 7/1/2020 221,546 220,054 198,285 Vivid Seats Ltd. Consumer Services L+5.75% (6.75%) 1.0 % 10/12/2022 250,000 245,197 250,000 Total Senior Secured Loans—First Lien $ 6,793,553 $ 6,680,615 $ 6,761,313 Senior Secured Loans—Second Lien—14.87% Cheddar’s Casual Café, Inc. Retail L+9.75% (10.75%) 1.0 % 1/4/2023 750,000 712,500 712,500 Flavors Holdings, Inc. Beverage, Food & Tobacco L+10.00% (11.00%) 1.0 % 10/7/2021 125,000 121,619 75,000 FullBeauty Brands Holding High Tech Industries L+9.00% (10.00%) 1.0 % 10/13/2023 250,000 218,269 173,750 GK Holdings, Inc. Business Services L+9.50% (10.50%) 1.0 % 1/21/2022 125,000 123,197 126,250 Oxbow Carbon LLC Metals & Mining L+7.00 (8.00%) 1.0 % 1/19/2020 250,000 237,142 245,625 Rocket Software, Inc. Business Services L+9.50% (10.50%) 1.0 % 10/14/2024 500,000 490,281 508,595 SCS Holdings I Inc. High Tech Industries L+9.50% (10.50%) 1.0 % 10/13/2023 125,000 121,983 125,938 Total Senior Secured Loans—Second Lien $ 2,125,000 $ 2,024,991 $ 1,967,658 Subordinated Convertible Debt—4.89% Javlin Capital LLC Subordinated Convertible Note (a) (e) Specialty Finance 6.00% 3/31/2020 646,901 646,901 646,901 Total Subordinated Convertible Debt $ 646,901 $ 646,901 $ 646,901 Equity/Other—9.29% ACON IWP Investors I, L.L.C. (a) Healthcare & Pharmaceuticals 500,000 500,000 691,072 Javlin Capital LLC Class C-2 Preferred Units (a) (d) (e) Specialty Finance 214,286 750,000 537,229 Total Equity/Other 714,286 $ 1,250,000 $ 1,228,301 TOTAL INVESTMENTS—80.16% $ 10,602,507 $ 10,604,173 OTHER ASSETS IN EXCESS OF LIABILITIES—19.84% $ 2,624,529 NET ASSETS - 100.00% $ 13,228,702 (a)Affiliated investment as defined by the 1940 Act, whereby the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities and the investments are not classified as controlled investments. Affiliated funds that are managed by an affiliate of Triton Pacific Adviser, LLC also hold investments in this security. The aggregate fair value of non-controlled, affiliated investments at December 31, 2016 represented 14.23% of the Company’s net assets. Fair value as of December 31, 2016 along with transactions during the period ended December 31, 2015 in affiliated investments were as follows: Year Ended December 31, 2016 Non-controlled, Affiliated Investments Fair Value at December 31, 2015 Gross Additions (Cost)* Gross Reductions (Cost)** Fair Value at December 31, 2016 Net Realized Gain (Loss) Interest & Dividends Credited to Income ACON IWP Investors I, L.L.C. $ 738,266 $ — $ — $ 691,072 $ — $ — Javlin Capital, LLC, Convertible Note 609,219 37,682 — 646,901 — 37,682 Javlin Capital, LLC, C-2 Preferred Units 750,000 — — 537,229 — — Total $ 2,097,485 $ 37,682 $ — $ 1,875,202 $ — $ 37,682 *Gross additions include increases in(p) During the cost basis of investments resulting from new portfolio investments, PIK interest,year ended June 30, 2021, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.**Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company outcharacterization of this category into a different category.(b)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effect at December 31, 2016. Certain investments are subject to a LIBOR or Prime interest rate floor. As of December 31, 2016, the three-month London Interbank Offered Rate, or LIBOR, was 0.99789%.(c)Fair value and market value are determined by the Company’s board of directors (see Note 7.)(d)Security held within TPJ Holdings, Inc., a wholly-owned subsidiary of the Company. investment changed from affiliate to non-affiliate. Note 2 for a discussion on the basis of consolidation.(e)The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than a qualifying asset, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. As of December 31, 2016, 91.87% of the Company’s total assets represented qualifying assets.(f)See Note 5 for a discussion of the tax cost of the portfolio.The accompanying notes are an integral part of theseto consolidated financial statements.9Triton Pacific Investment Corporation, Inc.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)– DESCRIPTION- NATURE OF BUSINESSpublicly registered, non-traded fund focused on private equity, structuredan externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to generate current income and, as a secondary objective, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. We intend to meet our investment objective by primarily lending to and investing in the debt of privately-owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $2.5 billion. We expect that at least 70% of our portfolio of investments will consist primarily makes structuredof syndicated senior secured first lien loans, syndicated senior secured second lien loans, and to a lesser extent, subordinated debt, and that up to 30% of our portfolio of investments will consist of other securities, including private equity (both common and preferred), dividend-paying equity, royalties, and the equity and junior debt investments in smalltranches of a type of pools of broadly syndicated loans known as collateralized loan obligations ("CLOs"), which we also refer to mid-sized private U.S. companies. Structured equity refers to derivative investment products, including convertibleas subordinated structured notes and warrants, designed to facilitate highly customized risk-return objectives.("SSNs"). Pursuant to theour Articles of Incorporation, as amended, restated and supplemented, the Company is authorized to issue 75,000,000 shares of common stock with a par value of $0.001 per share. Additionally, the Company is authorized to issue 25,000,000 shares of preferred stock with a par value of $0.001 per share. The Company is currently offeringpreviously offered for sale a maximum of $300,000,000 of shares of common stock on a “best efforts” basis pursuant to a registration statement on Form N-2 filed with the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended, that was dated and became effective on October 27, 2020 (the “Offering”). The Company's initial registration statement on Form N-2 was declared effective on September 4, 2012 and the Company commenced the Offering on such date. On June 25, 2014, the Company met its minimum offering requirement of $2,500,000 and released all shares held in escrow.The On and effective February 19, 2021, the Company invests either alone or togetherterminated the Offering and, as a result, the Company's Amended and Restated Dealer Manager Agreement, dated August 6, 2020, with other private equity sponsors.Triton Pacific Securities, LLC ("TPS") terminated in accordance with its terms and TPS ceased serving as the Company's dealer manager effective as of such date. The Company is engaged in discussions with and due diligence of other firms to potentially serve in the future capacity as the Company’s dealer manager regarding potential future capital raises of the Company. externally managed, non-diversified closed-endaffiliate of PWAY, became our investment company that has electedadviser, and Prospect Administration LLC (the "Administrator"), an affiliate of PFIM and our new investment advisor, Prospect Capital Management L.P. (the "Adviser"), became our administrator.bealign ongoing financial reporting of the Company’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Further, the components of net assets of the Company reflect the combined components of net assets of both PWAY and TPIC.business development company, or BDC, underrecapitalization of PWAY followed by the reverse acquisition ofCompany ActAdvisory Agreement at a Special Meeting of 1940, orStockholdersCompany Act.Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as our investment adviser instead of PFIM. As a BDC,such, the Company is required to comply with certain regulatory requirements. The Company has electedFormer Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be treated for U.S. federal income tax purposes,conducted by the Adviser as were conducted by PFIM. On November 5, 2021, we amended and intendsrestated the Investment Advisory Agreement (the “Amended and Restated Advisory Agreement”) to annually qualifyreduce the advisory fees payable thereunder, effective as a regulated investment company, or RIC, under Subchapter Mof January 1, 2022 and until the one year anniversary of the Internal Revenue codelisting of 1986,our common stock on a national securities exchange. The Amended and Restated Advisory Agreement was unanimously approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), and became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser were as amended, or the Code. The Company has one wholly-owned subsidiary through which it holds interestset forth in a non-controlled, affiliated portfolio company. The consolidated financial statements include both the Company’s accounts and the accounts of its wholly-owned subsidiary. All significant intercompany transactions have been eliminated in consolidation. The Company’s consolidated subsidiary is subject to U.S. federal and state income taxes. No taxes were accrued or paid by the wholly-owned subsidiary for the three and nine months ended September 30, 2017 and 2016.Triton Pacific Adviser, LLC (“Adviser”) serves as the Investment AdviserAdvisory Agreement. See “Note 4 - Related Party Transactions and TFA Associates, LLC (“TFA”) serves as the Administrator. Each of these entities are affiliated with Triton Pacific Group, Inc., a private equity investment management firm, and its subsidiary Triton Pacific Capital Partners, LLC, a private equity investment fund management company, each focused on debt and equity investmentsArrangements - Investment Advisory Agreement” for small to mid-sized private companies.Securities and Exchange Commission (“SEC”)SEC under the Investment Advisers Act of 1940, as amended, or the Advisers Act. The Adviser oversees the management of the Company’sour activities and is responsible for making the investment decisions with respect to our investment portfolio, subject to the oversight of our board of directors.portfolio.– SUMMARY OF- SIGNIFICANT ACCOUNTING POLICIESPresentation.ThesePresentation and Consolidation. The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles generally accepted in the United States of America (“GAAP”) pursuant to the requirements for interim financial information, including accounting for investment companies underreporting on Form 10-Q, ASC Topic946, Financial Services - Investment Companies (“ASC 946”), and Articles 6, 10 and 12 of Regulation S-X. Under the 1940 Act, ASC 946, and the rules and regulations pursuant to Article 6 of the Securities and Exchange Commission for interim financial statements. TheseRegulation S-X, we are precluded from consolidating any entity other than another investment company or an operating company which provides substantially all of its services to benefit us. Our consolidated financial statements reflect all adjustmentsinclude the accounts of FLEX and accruals of a normal recurring nature that,the SPV. All intercompany balances and transactions have been eliminated in consolidation. opinionpresentation of management, are necessarily indicative of results expected for any future period. These interim, unauditedprior consolidated financial statements and relatedaccompanying notes should be read in conjunction withto conform to the financial statementspresentation as of and related notes included in the Company’s annual report on Form 10-K for the yearsix months ended December 31, 2016.2021.unauditedthe consolidated financial statements in conformityaccordance with GAAP requires managementus to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenuesincome, expenses, and expensesgains and losses during the reportingreported period. ActualChanges in the economic environment, financial markets, creditworthiness of the issuers of our investment portfolio and any other parameters used in determining these estimates could cause actual results to differ, and these differences could differ from those estimates.be material.10Corporation. The Company maintains cash balances thatCorporation ("FDIC"). Cash held at financial institutions, at times, may exceed federallythe FDIC insured limits.limit.net assetfair value of its investment portfolio each quarter. Securities that are publicly-traded are valued atAs a BDC, and in accordance with the reported closing price on the valuation date. Securities that are not publicly-traded are valued at1940 Act, we fair value as determinedour investment portfolio on a quarterly basis, with any unrealized gains and losses reflected in good faith by the Company’s boardnet increase (decrease) in net assets resulting from operations on our Consolidated Statement of directors. In connection with that determination, the Adviser provides the Company’s board of directors with portfolio company valuations which are based on relevant inputs which may include indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts, and also may include valuations prepared by third-party valuation services.OperationsAccounting Standards Codification Topic 820,Fair Value Measurements and Disclosure, or ASC Topic 820, issued by the Financial Accounting Standards Board, clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, which includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.With respect to investments for which market quotations are not readily available, the Company undertakes a multi-step valuation process each quarter, as described below:●the Company’s quarterly valuation process begins with the Adviser’s management team providing a preliminary valuation of each portfolio company or investment to the Company’s board of directors, which valuation may be obtained from an independent valuation firm or Adviser, if applicable;●preliminary valuation conclusions are then documented and discussed with the Company’s board of directors;●the Company’s board of directors reviews the preliminary valuation and the Adviser’s management team, together with its independent valuation firm, if applicable, responds and supplements the preliminary valuation to reflect any comments provided by the board of directors; and●the Company’s board of directors discusses valuations and determines the fair value of each investment in the Company’s portfolio in good faith based on various statistical and other factors, including the input and recommendation of the Adviser and any third-party valuation firm, if applicable.Determination of fair value involves subjective judgments and estimates. Accordingly, these notes to the Company’s financial statements refer to the uncertainty with respect to the possible effect of such valuations and any change in such valuations on the Company’s financial statements. Below is a description of factors that the Company’s board of directors may consider when valuing the Company’s debt and equity investments.Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted cash flow models to arrive at fair value. Other factors that the Company’s board of directors may consider include the borrower’s ability to adequately service its debt, the fair market value of the portfolio company in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. The determination of fair market value for the equity positions were determined by considering, among other factors, various income scenarios and multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues, waterfall and liquidation priority and market comparables, book value multiples, economic profits and portfolio multiples.11Revenue Recognition.Security transactionsaccountedbased on relevant inputs which may include indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts, and valuations prepared by third-party valuation services.date. The Company records interestdate basis. Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Amounts for investments traded but not yet settled are reported in Payable for investments purchased and Receivable for investments sold on the Consolidated Statements of Assets and Liabilities.basis tobasis. Accretion of such purchase discounts or amortization of such premiums is calculated using the extent it expects to collect such amounts.effective interest method as of the settlement date and adjusted only for material amendments or prepayments. Upon the prepayment of a loan or bond, any unamortized discount or premium is recorded as interest income. The Company records dividend income on the ex-dividend date. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. Loans are placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Unpaid accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans are either applied to the cost basis or interest income, depending upon management’s judgment of the collectibility of the loan receivable. Non-accrual loans are restored to accrual status when past due principal and interest is paid and in management’s judgment, is likely to remain current and future principal and interest collections when due are probable. Interest received and applied against cost while a loan is on non-accrual, and PIK interest capitalized but not recognized while on non-accrual, is recognized prospectively on the effective yield basis through maturity of the loan when placed back on accrual status, to the extent deemed collectible by management. During the three months and six months ended December 31, 2021, the Company did not have any loans on non-accrual status. During the three months and six months ended December 31, 2020, the Company had two loans on non-accrual status. Loan origination fees original issue discount and market discount are capitalized and the Company amortizesaccretes such amounts as interest income over the respective term of the loan or security.security, using the effective interest method. Upon the prepayment of a loan or security, any unamortized loan origination fees and original issue discount are recorded as interest income. Upfront structuring fees are recorded as fee income when earned. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.Paid-In-Kind Interest.companyCompany monitors the expected cash inflows from CLO equity investments, including the expected residual payments, and the estimated effective yield is determined and updated periodically.payment-in-kind (“PIK”)PIK interest provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. For the three months ended September 30, 2017December 31, 2021 and 2016,2020, PIK interest included in interest income included $0totaled $193 and $9,540 of PIK interest,$7,647, respectively. For the ninesix months ended September 30, 2017December 31, 2021 and 2016,2020, PIK interest included in interest income included $19,488totaled $385 and $27,994 of PIK interest,$15,155, respectively. The Company stops accruing PIK interest when it is determined that PIK interest is no longer collectible. As of July 1, 2017, the Company has stopped accruing PIK interest on the subordinated convertible note made by Javlin Financial LLC. To maintain RIC tax treatment, and to avoid corporate tax, substantially all of this income must be paid out to the stockholders in the form of distributions, even though the Company has not yet collected the cash. Gains or Losses, and Net Change in Unrealized AppreciationGains or Depreciation.Losses. Gains or losses on the sale of investments are calculated by using the specific identification method. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses when gains or losses are realized.Capital Gains Incentive Fees. The Company has entered into an investment advisory agreement with the Adviser dated as of July 27, 2012. Pursuant to the terms of the investment advisory agreement, the Incentive Fee shall be determinedFederal and payable in arrears as of the end of each quarter, upon liquidation of the Company or upon termination of this Agreement, as of the termination date, and shall equal 20.0% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of each quarter, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid Incentive Fees. There was no fee earned for the three months ended September 30, 2017. The fee for the nine months ended September 30, 2017 was ($334), of which ($13,124) was for Incentive Fees calculated on unrealized gains.For purposes of calculating the foregoing: (1) the calculation of the Incentive Fee shall include any capital gains that result from cash distributions that are treated as a return of capital; (2) any such return of capital shall be treated as a decrease in the Company’s cost basis of an investment; and (3) all fiscal year-end valuations shall be determined by the Company in accordance with generally accepted accounting principles, applicable provisions of the Company Act (even if such valuation is made prior to the date on which the Company has elected to be regulated as a BDC) and the Company’s pricing procedures. In determining the Incentive Fee payable to the Adviser, the Company will calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each of the investments in its portfolio. For this purpose, aggregate realized capital gains, if any, will equal the sum of the differences between the net sales price of each investment, when sold, and the original cost of such investment since inception. Aggregate realized capital losses will equal the sum of the amounts by which the net sales price of each investment, when sold, is less than the cost of such investment since inception. Aggregate unrealized capital depreciation will equal the sum of the difference, if negative, between the valuation of each investment as of the applicable date and the original cost of such investment. At the end of the applicable period, the amount of capital gains that serves as the basis for the Company’s calculation of the Incentive Fees will equal the aggregate realized capital gains less aggregate realized capital losses and less aggregate unrealized capital depreciation with respect to its portfolio of investments. If this number is positive at the end of such period, then the Incentive Fees for such period will be equal to 20% of such amount, less the aggregate amount of any Incentive Fees paid in respect of its portfolio in all prior periods.12Offering Costs.The Company will incur certain expenses in connection with registering to sell shares of its common stock in connection with the Offering. These costs principally relate to professional and filing fees. Upon recognition or repayment to the Adviser of these costs, they will be capitalized as deferred offering expenses and then subsequently expensed over a 12-month period. The Adviser may reimburse the Company for all or part of these amounts pursuant to the Expense Support and Conditional Reimbursement Agreement (“Expense Reimbursement Agreement”) discussed below. As of September 30, 2017, and December 31, 2016, $3,314,687 and $2,765,662, respectively, of offering costs have been reclassified and included as part of the Expense Reimbursement Agreement and accordingly included in Reimbursement due from the Adviser.Distributions.Distributions to the Company’s stockholders are recorded as of the record date. Subject to the discretion of the Company’s board of directors and applicable legal restrictions, the Company intends to authorize and declare ordinary cash distributions on a monthly basis and pay such distributions on a monthly basis. for federal income tax purposes, and intends to annually qualify thereafter, as a regulated investment company (“RIC”) under Subchapter M of the Code. Generally,Internal Revenue Code of 1986, as amended (the “Code”), and intends to continue to comply with the requirements of the Code applicable to RICs. As a RIC, the Company is exempt from federal income taxes if it distributesrequired to distribute at least 90% of “Investment Company Taxable Income,” as defined in the Code, each year. Dividends paid up to 8.5 months after the current tax year can be carried back to the prior tax year for determining the dividends paid in such tax year. The Companyits investment company taxable income and intends to distribute sufficient(or retain through a deemed distribution) all of its investment company taxable income and net capital gain to stockholders; therefore, the Company has made no provision for income taxes. The character of income and gains that the Company will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividends and distributions and other permanent book and tax differences are reclassified to maintain its RIC status each year. Thepaid-in capital. is also subject to nondeductible federal excise taxes if it does not distribute (or is not deemed to have distributed) at least 98% of netits annual ordinary income and 98.2% of its net capital gaingains in the calendar year earned, it will generally be required to pay an excise tax equal to 4% of the amount by which 98% of its annual ordinary income and 98.2% of its capital gains exceeds the distributions from such taxable income for the year. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, it accrues excise taxes, if any, andon estimated excess taxable income. As of December 31, 2021, the Company does not expect to have any recognized and undistributedexcise tax due for the 2021 calendar year. Thus, the Company has not accrued any excise tax for this period.from prior years for which it paid no federal excise tax.at regular corporate income tax rates. The Company willwould not be able to deduct distributions to stockholders, nor would it be required to make distributions. Distributions would generally endeavor eachbe taxable to the Company’s individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced to avoid any federal excise taxes.GAAP requires management to evaluate tax positions taken by the Company would be required to distribute to its shareholders its accumulated earnings and recognize a tax liabilityprofits attributable to non-RIC years. In addition, if the Company has taken anfailed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, it would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years. position that more likely than not would not be sustained upon examination by the Internal Revenue Service or other tax authorities. Management has analyzed the tax positions taken byshould be recognized, measured, presented, and disclosed in the Company, and has concluded that asconsolidated financial statements. ASC 740 requires the evaluation of September 30, 2017 and 2016, there are no uncertaintax positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. Thecourse of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. As of December 31, 2021, the Company isdid not record any unrecognized tax benefits or liabilities. Management’s determinations regarding ASC 740 may be subject to routine auditsreview and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations and interpretations thereof. Although the Company files both federal and state income tax returns, its major tax jurisdiction is federal. The Company’s federal tax returns for the tax years ended December 31, 2018 and thereafter remain subject to examination by the Internal Revenue Service or other tax authorities, generally for three years after the tax returns are filed; however, there are currently no audits for any tax periods in progress.Pronouncements.PronouncementsJanuary 2016,March 2020, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and Measurement of Financial Assetsexceptions for applying GAAP to contracts, hedging relationships, and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 retains many current requirements for the classification and measurement of financial instruments; however, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation ofother transactions affected by reference rate reform if certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments. This guidancecriteria are met. The standard is effective for annual and interim periods beginning afteras of March 12, 2020 through December 15, 2017, and early adoption is not permitted for public business entities.31, 2022. Management is currently evaluating the impact these changesof the optional guidance on the Company's consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the three months and six months ended December 31, 2021.consolidated financial statements and disclosures.13In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. The new standard will become effective for the Company on January 1, 2018, with early application permitted to the effective date of January 1, 2017. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The guidance does not apply to revenue associated with financial instruments, including loans and notes that are accounted for under other U.S. GAAP. As a result, the Company does not expect the new revenue recognition guidance to have a material impact on the elements of its consolidated statements of operations, most closely associated with financial instruments, including realized gains, fees, interest and dividend income. The Company plans to adopt the revenue recognition guidance in the first quarter of 2018. The Company’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and related accounting policies. While the Company has not yet identified any material changes in the timing of revenue recognition, the Company’s review is ongoing, and it continues to evaluate the presentation of certain contract costs.In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU further clarifies how the predominance principle should be applied to cash receipts and payments relating to more than one class of cash flows. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The ASU is to be applied retrospectively for each period presented. The Company is currently evaluating the impact this ASU will have on the Company’s consolidated statement of cash flows.–- SHARE TRANSACTIONSthe Company’s common stock of FLEX during the ninethree months and six months ended September 30, 2017December 31, 2021:Three Months Ended December 31, 2021 Six Months Ended December 31, 2021 FLEX Class A Common Shares FLEX Class A Common Shares Shares Amount Shares Amount Shares issued through reinvestment of distributions 20,627 170,541 44,411 369,886 Repurchase of common shares (24,286) (200,121) (48,367) (400,716) Net increase/(decrease) from capital transactions (3,659) $ (29,580) (3,956) $ (30,830) 2016: Nine months ended September 30, 2017 2016 Shares Amount Shares Amount Gross proceeds from Offering 362,028.61 $ 5,320,227 341,456.57 $ 5,109,288 Reinvestment of Distributions 16,105.02 214,336 11,178.05 155,067 Commissions and Dealer Manager Fees — (502,640 ) — (438,556 ) Net Proceeds to Company from Share Transactions 378,133.63 $ 5,031,923 352,634.62 $ 4,825,798 Three Months Ended December 31, 2020 Six Months Ended December 31, 2020 FLEX Class A Common Shares FLEX Class A Common Shares Shares Amount Shares Amount Shares issued 3,318 $ 30,000 31,133 $ 281,000 Shares issued through reinvestment of distributions 23,548 200,357 46,301 389,701 Repurchase of common shares (26,986) (229,113) (55,772) (466,601) Net increase/(decrease) from capital transactions (120) $ 1,244 21,662 $ 204,100 During the nine months ended September 30, 2017 and 2016, the Company sold 362,028.61 and 341,456.57 shares of common stock, respectively, for gross proceeds of approximately $5,320,227 and $5,109,288, at an average price per share of $14.70 and $14.96, respectively. The increase in Capital in excess of par during the nine months ended September 30, 2017 and 2016 include reinvested stockholder distributions of $214,336 and $155,067, respectively, for which the Company issued 16,105.02 and 11,178.05 shares of common stock, respectively.statementsConsolidated Statements of changesChanges in net assetsNet Assets and statementsConsolidated Statements of cash flowsCash Flows are presented net of selling commissions and dealer manager feesfees. The table above is presented gross of $502,640selling commissions and $438,556dealer manager fees for the ninethree months and six months ended September 30, 2017December 31, 2021 and 2016, respectively.14●the effect of such repurchases on the Company’s qualification as a RIC (including the consequences of any necessary asset sales);●the liquidity of the Company’s assets (including fees and costs associated with disposing of assets);●the Company’s investment plans and working capital requirements;●the relative economies of scale with respect to the Company’s size;●the Company’s history in repurchasing shares of common stock or portions thereof; and●the condition of the securities markets.90% of the current net offering price or net asset value per share, as applicable, on each date of repurchase. If the amount of repurchase requests exceeds the number of shares we seek to repurchase, we will repurchase shares on a pro-rata basis. As a result, we may repurchase less than the full amount of shares that shareholdersstockholders submit for repurchase. If we do not repurchase the full amount of the shares that shareholdersstockholders have requested to be repurchased, or we determine not to make repurchases of our shares, shareholdersstockholders may not be able to dispose of their shares. Any periodic repurchase offers will be subject in part to our available cash and compliance with the Company1940 Act.following table providesSpecial Repurchase Offer consisted of four quarterly tender offers, the first of which occurred in the second calendar quarter of 2019, the second of which occurred in the third calendar quarter of 2019, the third of which occurred in the fourth calendar quarter of 2019 and the last of which occurred in the first calendar quarter of 2020. Each of the four tender offers that were part of the Special Repurchase Offer allowed the Eligible Stockholders to tender for repurchase up to 25% of their shares held as of the date of the 2019 Annual Meeting. The repurchase price for any shares tendered during the Special Repurchase Offer was equal to the net asset value per share of our common stock as of the date of each such repurchase. concerningsuch Eligible Stockholders should consider in deciding whether to tender their shares to us in the Company’s repurchaseSpecial Repurchase Offer. These documents are available on our website at www.prospectsustainablebdc.com. Each Eligible Stockholder had not less than 20 business days from the date of that notice to elect to tender their shares back to us.the nine months ended September 30, 2017 and 2016:For the Three Months Ended Repurchase Date Shares Repurchased Percentage of Shares Tendered That Were Repurchased Repurchase Price Per Share Aggregate Consideration for Repurchased Shares Fiscal 2017 September 30, 2016 July 15, 2016 8,482.60 50 % $ 13.80 $ 117,060 December 31, 2016 October 14, 2016 8,482.60 48 % $ 13.80 $ 117,060 March 31, 2017 January 20, 2017 8,482.60 27 % $ 13.87 $ 117,654 June 30, 2017 May 12, 2017 1,936.81 6 % $ 13.55 $ 26,243 September 30, 2017 September 25, 2017 5,968.22 9 % $ 12.30 $ 73,409 16,387.63 12 % $ 13.26 $ 217,306 For the Three Months Ended Repurchase Date Shares
Repurchased Percentage of
Shares Tendered
That Were
Repurchased Repurchase
Price Per
Share Aggregate
Consideration for Repurchased
Shares Fiscal 2017 September 30, 2016 July 15, 2016 8,482.60 50 % $ 13.80 $ 117,060 15Quarterly Offer Date Repurchase Effective Date Shares
RepurchasedPercentage of Shares
Tendered That Were
RepurchasedRepurchase Price
Per ShareAggregate
Consideration for
Repurchased Shares Three months ended December 31, 2021 December 31, 2021 November 4, 2021 24,287 11 % $ 8.24 $ 200,121 Total for the three months ended December 31, 2021 24,287 $ 200,121 Six months ended December 31, 2021 December 31, 2021 November 4, 2021 24,287 11 % $ 8.24 $ 200,121 September 30, 2021 August 2, 2021 24,081 10 % $ 8.33 $ 200,595 Total for the six months ended December 31, 2021 48,368 $ 400,716 Year ended June 30, 2021 September 30, 2020 July 22, 2020 28,786 44 % $ 8.25 $ 237,488 December 31, 2020 November 2, 2020 26,986 15 % $ 8.49 229,113 March 31, 2021 February 10, 2021 21,588 10 % $ 8.90 192,133 June 30, 2021 May 10, 2021 23,665 11 % $ 8.50 201,149 Total for the year ended June 30, 2021 101,025 $ 859,883 Year ended June 30, 2020 October 8, 2019 34,489 100 % $ 9.46 $ 326,262 December 27, 2019 51,715 100 % $ 8.91 460,786 March 31, 2020 February 21, 2020 19,743 12 % $ 10.70 211,246 April 14, 2020 52,987 100 % $ 8.05 426,546 Total for the year ended June 30, 2020 158,934 $ 1,424,840 –- RELATED PARTY TRANSACTIONS AND ARRANGEMENTSTFArestated as of June 17, 2019 (the "Administration Agreement"). The Administrator performs, oversees and their affiliates will receive compensationarranges for the performance of administrative services necessary for the operation of the Company. These services include, but are not limited to, accounting, finance and reimbursementlegal services. For providing these services, facilities and personnel, the Company reimburses the Administrator for services relating to our offeringthe Company’s actual and allocable portion of expenses and overhead incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and the investment and managementCompany’s allocable portion of the costs of its assets.In connectionOffering, the Company has incurred registration, organization, operating and offering costs. Such costs have been advanced by the Adviser. As discussed below, the Company has entered into an Expense Reimbursement Agreement with its Adviser. For the period from inception through September 30, 2017, certain registration, organization, operating and offering costs have been accounted for under the Expense Reimbursement Agreement (see Expense Reimbursement Agreementbelow) and accordingly included in Reimbursement due from the Adviser, on the statements of financial position.The table below, on a cumulative basis, discloses the components of the Reimbursement due from Adviser reflected on the Statements of Financial Position: September 30, December 31, 2017 2016 Operating Expenses $ 1,977,504 $ 1,896,657 Offering Costs 3,314,687 2,765,662 Due to related party offset (4,619,337 ) (4,213,469 ) Reimbursements received from Adviser (342,715 ) (342,715 ) Other amounts due to affiliates 448 448 Total Reimbursement due from Adviser $ 330,587 $ 106,583 Operating Expenses are the amounts reimbursed by the Adviser for our operating costs and offering costs are the cumulative amount of organizational and offering expenses reimbursed to us by the Adviser and subject to future reimbursement per the terms of our expense reimbursement agreement.Due to related party offset represents the cash the Adviser paid directly for our operating and offering expenses and reimbursements received from sponsor are the amounts the Adviser paid in cash to us for reimbursement of our operating and offering costs.The Company compensates the Adviser for investment services per an Investment Adviser Agreement (“Agreement”),which was unanimously approved by the Company’s board of directors, calculatedincluding by all of the directors who are not “interested persons” (as defined in the 1940 Act), on February 18, 2021, subject to stockholder approval of the Investment Advisory Agreement. The Company’s stockholders approved the Investment Advisory Agreement at a Special Meeting of Stockholders held on March 31, 2021.sumCompany’s investment adviser instead of (1)PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM.quarterly at 0.5%an annual rate of 1.75% (0.4375% quarterly) of our average total assets, which included any borrowings for investment purposes. For the first quarter of our operations following the Merger, the base management fee was calculated based on the average value of our total assets as of the Company’s average gross assetsdate of the Former Investment Advisory Agreement and at the end of the calendar quarter in which the date of the Former Investment Advisory Agreement fell, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Subsequently, the base management fee was payable quarterly in arrears, and (2) anwas calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter was appropriately pro-rated. At PFIM’s option, the base management fee for any period could be deferred, without interest thereon, and paid to PFIM at any time subsequent to any such deferral as PFIM determined.uponconsisted of two parts: (1) the subordinated incentive fee on income and (2) the capital gains incentive fee.quarter or upon liquidation of the Company orcalendar year (or upon termination of the Former Investment Advisory Agreement, at 20%as of Company’sthe termination date), and equaled 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year. In determining the capital gains incentive fee payable to PFIM, we would calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as defined. The Agreement expires July 2018applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may continue automaticallybe asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equaled the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed.successive annual periods, as approvedour calculation of the capital gains incentive fee involved netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the Company. Allaggregate unrealized capital depreciation. If this number was positive, then the capital gains incentive fee payable was equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception. Operating expenses were not taken into account when determining capital gains incentive fees.earnedfor any partial month or quarter is appropriately pro-rated. At the Adviser’s option, the base management fee for any period may be deferred, without interest thereon, and paid to the Adviser at any time subsequent to any such deferral as the Adviser determines.prior to January 1, 2014was $184,999 and $367,197 during the three months and six months ended December 31, 2021, respectively. During the three months and six months ended December 31, 2021, the base management fee of $184,999 and $367,197 were waived by the Adviser.BDC,deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, is compared to a preferred return, or “hurdle,” of 1.5% per quarter (6.0% annualized) and a “catch-up” feature measured as of the end of each calendar quarter as discussed below. The subordinated incentive fee on income for each calendar quarter is paid to our Adviser as follows: (1) no incentive fee is payable to our Adviser in any calendar quarter in which our pre-incentive fee net investment income does not exceed the fixed preferred return rate of 1.5%; (2) 100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the fixed preferred return but is less than or equal to 1.875% in any calendar quarter (7.5% annualized); and (3) 20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 1.875% in any calendar quarter (7.5% annualized). This reflects that once the fixed preferred return is reached and the catch-up is achieved, 20.0% of all pre-incentive fee net investment income thereafter is allocated to our Adviser. These calculations are appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.subjectcalculated for a period of shorter than twelve calendar months to certain regulatory restrictionstake into account any net realized capital gains, if any, computed net of all realized capital losses and unrealized capital depreciation for the period commencing as of the date of the Investment Advisory Agreement and ending on December 31, 2021. In determining the capital gains incentive fee payable to our Adviser, we calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in making our investments.portfolio. For example,the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may begenerallyamended and restated the Investment Advisory Agreement to reduce the base management fee from an annual rate of 1.75% (0.4375% quarterly) to 1.20% (0.30% quarterly) and eliminate the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. As such, until the Listing Anniversary, the base management fee will be calculated at an annual rate of 1.20% (0.30% quarterly) and the Adviser will not be permittedentitled to co-invest alongside ourany incentive fee. Following the Listing Anniversary (1) the base management fee will be calculated at an annual rate of 1.75% (0.4375% quarterly), commencing with the first base management fee calculation that occurs after such anniversary, and (2) the Adviser will be entitled to receive the same incentive fee, including the subordinated incentive fee on income and its affiliates unless we obtainthe capital gains incentive fee, as set forth in the Investment Advisory Agreement and discussed above, commencing with the first calendar quarter after such anniversary. The Amended and Restated Advisory Agreement became effective on January 1, 2022. Until such effect date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. See “Investment Advisory Agreement” above.transaction is otherwise permitted under existing regulatory guidance, such as syndicated transactions where price is1940 Act, subject to the only negotiated term, and approval from our independent directors. As of September 30, 2017,conditions included therein.Company has two affiliate investments in ACON IWP Investors I, L.L.C and Javlin Capital, LLC (held by TPJ Holdings, Inc., a wholly-owned subsidiary.)The Company compensates TFA for administration services per an Administration Agreement for costs and expenses incurred with the administration and operationterms of the Company. Such agreement expires July 2018 and may continue automatically for successive annual periods, as approved byOrder, a “required majority” (as defined in Section 57(o) of the Company. These fees have been reimbursed from the Adviser pursuant to the Expense Reimbursement Agreement discussed below.16The following table describes the fees and expenses accrued under the investment advisory and administration agreement and the dealer manager agreement during the three and nine months ended September 30, 2017 and 2016: Three months ended September 30, Nine months ended September 30, Related Party Source Agreement Description 2017 2016 2017 2016 Triton Pacific Adviser, LLC Investment Adviser Agreement Base Management Fees $ 83,459 $ 60,625 $ 246,154 $ 156,957 Triton Pacific Adviser, LLC Investment Adviser Agreement Capital Gains Incentive Fees(1) $ — $ 11,265 $ (334 ) $ 31,609 TFA Associates, LLC Administration Agreement Administrative Services Expenses $ 70,495 $ 78,840 $ 213,473 $ 242,332 Triton Pacific Securities, LLC Dealer Manager Agreement Dealer Manager Fees(2) $ 37,201 $ 20,987 $ 97,435 $ 107,444 (1)During the nine months ended September 30, 2017 and 2016, the Company earned capital gains incentive fees of ($334) and $31,609 respectively, based on the performance of its portfolio, of which ($13,124) and $31,609 were based on unrealized gains, respectively. No capital gains incentive fees are actually payable by the Company with respect to unrealized gains unless and until those gains are actually realized. See Note 2 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees.(2)During the nine months ended September 30, 2017 and 2016, the Company paid the Dealer Manager $502,640 and $438,555 respectively, in sales commissions and dealer fees. $97,435 and $107,444 were retained by TPS, respectively, and the remainder re-allowed to third party participating broker dealers.Director’s FeesOn December 15, 2014, the Company entered into an agreement (the “Director Agreement”) with its three independent directors, Marshall Goldberg, William Pruitt and Ronald Ruther (collectively, the “Independent Directors”), whereby the Independent Directors agreed to certain revisions to their compensation for serving as members1940 Act) of the Company’s Board. Specifically, effective October 1, 2014,independent directors must make certain conclusions in connection with a co-investment transaction, including that (1) the fees payable to an Independent Director shall be determined based on the Company’s net assets asterms of the end of each fiscal quarter andproposed transaction, including the consideration to be paid, quarterly in arrears as follows:Net Asset Value Annual Cash
Retainer Fee Board Meeting
Fee Annual Audit
Committee
Chairperson
Fee Annual Audit
Committee
Member Fee Audit
Committee
Meeting Fee$0 to $25 million — — — — — $25 million to $75 million $20,000 $1,000 $10,000 $2,500 $500 over $75 million $30,000 $1,000 $12,500 $2,500 $500 No Director’s fees were accrued for the threeare reasonable and nine months ended September 30, 2017 and 2016.Expense Reimbursement AgreementOn March 27, 2014,fair to the Company and its stockholders and do not involve overreaching of the Company or its stockholders on the part of any person concerned and (2) the transaction is consistent with the interests of the Company’s stockholders and is consistent with the Company’s investment objective and strategies. In certain situations where co-investment with one or more funds managed or owned by the Adviser agreedor its affiliates is not covered by the Order, such as when there is an opportunity to invest in different securities of the same issuer, the personnel of the Adviser or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. Moreover, except in certain circumstances, when relying on the Order, the Company will be unable to invest in any issuer in which one or more funds managed or owned by the Adviser or its affiliates has previously invested. Period Ended Former ELA Reimbursement Payable to PFIM Former ELA Reimbursement Payment to PFIM Unreimbursed Former ELA Reimbursement Operating Expense Ratio Annualized Distribution Rate Eligible to be Repaid Through June 30, 2019 $ 128,852 $ — $ 128,852 5.54% 6.00% June 30, 2022 September 30, 2019 $ 157,409 $ — $ 157,409 2.84% 6.00% September 30, 2022 December 31, 2019 $ 182,205 $ — $ 182,205 3.68% 6.00% December 31, 2022 March 31, 2020 $ 185,935 $ — $ 185,935 3.39% 7.00% March 31, 2023 June 30, 2020 $ 182,915 $ — $ 182,915 3.76% 7.00% June 30, 2023 September 30, 2020 $ 183,386 $ — $ 183,386 4.33% 7.00% September 30, 2023 December 31, 2020 $ — $ — $ — —% —% N/A March 31, 2021 $ — $ — $ — —% —% N/A June 30, 2021 $ — $ — $ — —% —% N/A Total $ 1,020,702 $ 1,020,702 SupportLimitation Agreement with the AdviserConditional Reimbursement Agreement, oreffective April 20, 2021, we entered into a new expense limitation agreement with the Expense Reimbursement Agreement. The Expense Reimbursement AgreementAdviser, which replaced the Former ELA with PFIM and was amended and restated effective November 17, 2014. Underon July 7, 2021 to extend the Expense Reimbursementperiod during which the Adviser will be required to waive its investment advisory fees under the Investment Advisory Agreement, from September 30, 2021 to June 30, 2022, as discussed below (such new expenses limitation agreement as amended and restated, the "New ELA"). The New ELA has an initial term ending on the first full month following the one-year anniversary of its effective date and may be continued thereafter for successive one-year periods in accordance with its terms.consultationorder to limit our Operating Expenses (as defined below) to an annual rate, expressed as a percentage of our average quarterly net assets, equal to 8.00% (the “Annual Limit”). After June 30, 2022, such waiver may be made at our Adviser’s option and in its sole discretion. For purposes of the New ELA, the term “Operating Expenses” with respect to the Company, will pay upis defined to 100%include all expenses necessary or appropriate for the operation of both the Company’s organizational and offering expenses and its operating expenses, all as determined by the Company, including but not limited to our Adviser’s base management fee, any and the Adviser. As used in the Expense Reimbursement Agreement, operating expenses refer to third party operatingall costs and expenses incurred bythat qualify as line item “organization and offering” expenses in the consolidated financial statements of the Company as determined under GAAP for investment management companies. Organizational and offering expenses include expenses incurred in connectionthe same are filed with the organization ofSEC and other expenses described in the CompanyInvestment Advisory Agreement, but does not include any portfolio transaction or other investment-related costs (including brokerage commissions, dealer and underwriter spreads, prime broker fees and expenses incurred in connection with its offering, whichand dividend expenses related to short sales), interest expenses and other financing costs, extraordinary expenses and acquired fund fees and expenses. Upfront shareholder transaction expenses, such as sales commissions, dealer manager fees and similar expenses, are recorded as a component of equity. The Expense Reimbursement Agreement states that until the net proceedsnot Operating Expenses. Our Adviser waived fees, pursuant to the Company from its offering are at least $25 million,New ELA, in an amount of $184,999 and $367,197 for the Adviser will pay up to 100% of both the Company’s organizationalthree months and offering expenses and its operating expenses. After the Company receives at least $25 million in net proceeds from its offering, the Adviser may, with the Company’s consent, continue to make expense support paymentssix months ended December 31, 2021, respectively.Company in such amounts as are acceptableNew ELA is subject to the Company and the Adviser. Any expense support payments shall be paidrepayment to our Adviser (an “ELA Reimbursement”) by us within the Adviser to the Company in any combination of cash, and/or offsets against amounts otherwise due from the Company to the Adviser.17Under the Expense Reimbursement Agreement as amended, once the Company has received at least $25 million in net proceeds from its offering, during any quarter occurring within three years of the date on which the Company incurred any expenses that are fundedwaiver was made by our Adviser. If the New ELA is terminated or expires pursuant to its terms, our Adviser the Company is requiredwill maintain its right to reimburse the Adviserrepayment for any expense support paymentswaiver it has made under the Company received from them. However, with respect to any expense support payments attributableNew ELA, subject to the Company’s operating expenses, (i)Repayment Limitations (discussed below).Company will only reimburse the Adviser for expense support payments made by the Adviser to the extentevent that the payment of such reimbursement (together with any other reimbursement paid during such fiscal year) does not cause “other operating expenses” (as defined below) (on an annualized basis and net of any expense reimbursement payments received by the Company during such fiscal year) to exceed the percentage of the Company’s average net assets attributable to shares of its common stock represented by “other operating expenses” during the fiscal year in which such expense support payment from the Adviser was made (provided, however, that this clause (i) shall not apply to any reimbursement payment which relates to an expense support payment from the Adviser made during the same fiscal year); and (ii) the Company will not reimburse the Adviser for expense support payments made by the Adviser if the annualized rate of regularwe have sufficient excess cash distributions declared by the Companyon hand at the time of any proposed ELA Reimbursement and shall be limited to the lesser of (i) the excess of the Annual Limit applicable to such reimbursement payment is less thanquarter over the Company’s actual Operating Expenses for such quarter and (ii) the amount of ELA Reimbursement which, when added to the Company’s expenses for such quarter, permits the Company to pay the then-current aggregate quarterly distribution to its shareholders, at a minimum annualized rate of regular cash distributions declared byat least 6.00% (based on the gross offering prices of Company shares) (the “Distribution”) from the sum of (x) the Company’s net investment income (loss) for such quarter plus (y) the Company’s net realized gains (losses) for such quarter (collectively, the “Repayment Limitations”). For the purposes of theatfor such quarter, without regard to the timeGAAP treatment of such expense. In the event that the Company is unable to make a full payment of any ELA Reimbursements due for any applicable quarter because the Company does not have sufficient excess cash on hand, any such unpaid amount shall become a payable of the Company for accounting purposes and shall be paid when the Company has sufficient cash on hand (subject to the Repayment Limitations); provided, that in the case of any ELA Reimbursements, such payment shall be made no later than the date that is three years after the date on which the applicable waiver was made by our Adviser.Period Ended ELA Reimbursement Payable to the Adviser ELA Reimbursement Payment to the Adviser Unreimbursed ELA Reimbursement Operating Expense Ratio Annualized Distribution Rate Eligible to be Repaid Through June 30, 2021 $ 144,073 $ — $ 144,073 4.04% 8.11% June 30, 2024 September 30, 2021 182,198 — 182,198 2.97% 7.08% September 30, 2024 December 31, 2021 184,999 — $ 184,999 3.00% 7.10% December 31, 2024 Total $ 511,270 $ 511,270 madeentered into a dealer manager agreement, as amended, with TPS, which terminated effective February 19, 2021 in accordance with its terms in connection with the expense support paymenttermination of the Company's continuous public offering of its common stock. TPS ceased serving as the Company's dealer manager effective as of such date. Pursuant to the terms of this dealer manager agreement, the Company would pay the dealer manager a fee of up to 9% of gross proceeds raised in the Company's offering, some of which would be re-allowed to other participating broker-dealers. In addition to the upfront selling commissions and dealer manager fees, PFIM could pay TPS a fee (the "Additional Selling Commissions") equal to no more than 1.0% of the net asset value per share per year. TPS would reallow all or a portion of the Additional Selling Commissions to participating broker-dealers. TPS is an affiliated entity of the Triton Pacific Adviser, LLC, our former investment adviser (the “TPIC Adviser”), and is partially owned by one of our former directors, Craig Faggen.reimbursement relates. “Other operating expenses” meansname for so long as our Adviser or another affiliate of the Company’s total operating expenses excluding base management fees, incentive fees, organization and offering expenses, financing fees and costs, interest expense, brokerage commissions and extraordinary expenses.Quarter Ended Amount of Expense Payment Obligation Amount of Offering Cost Payment Obligation Operating Expense
Ratio as of the
Date Expense
Payment Obligation Incurred(1) Annualized Distribution
Rate as of the Date
Expense Payment
Obligation Incurred(2) Eligible for
Reimbursement
ThroughSeptember 30, 2012 $21,826 432.69% — September 30, 2015 December 31, 2012 $26,111 531.09% — December 31, 2015 March 31, 2013 $30,819 N/A — March 31, 2016 June 30, 2013 $59,062 N/A — June 30, 2016 September 30, 2013 $65,161 N/A — September 30, 2016 December 31, 2013 $91,378 455.09% — December 31, 2016 March 31, 2014 $68,293 148.96% — March 31, 2017 June 30, 2014 $70,027 $898,518 23.17% — June 30, 2017 September 30, 2014 $92,143 $71,060 20.39% — September 30, 2017 December 31, 2014 $115,777 $90,860 11.15% — December 31, 2017 March 31, 2015 $134,301 $106,217 13.75% 2.01% March 31, 2018 June 30, 2015 $166,549 $167,113 14.10% 3.20% June 30, 2018 September 30, 2015 $147,747 $240,848 10.45% 3.20% September 30, 2018 December 31, 2015 $136,401 $280,376 7.41% 3.60% December 31, 2018 March 31, 2016 $157,996 $232,895 6.00% 3.52% March 31, 2019 June 30, 2016 $206,933 $285,878 4.95% 3.52% June 30, 2019 September 30, 2016 $201,573 $223,020 4.52% 3.13% September 30, 2019 December 31, 2016 $104,561 $168,876 4.45% 3.11% December 31, 2019 March 31, 2017 $80,847 $252,875 4.21% 3.19% March 31, 2020 June 30, 2017 $0 $176,963 3.98% 3.18% June 30, 2020 September 30, 2017 $0 $119,188 4.19% 3.00% September 30, 2020 (1)“Operating Expense Ratio” includes all expenses borne by us, except for organizational and offering expenses, base management and incentive fees owed to our Adviser,financing fees and costs, interest expense, brokerage commissions and extraordinary expenses.The Company did not achieve its minimum offering amount until June 25, 2014 and as a result, did not invest the proceeds from the offering and realize any income from investments prior to the end of its fiscal quarter.(2)“Annualized Distribution Rate” equals the annualized rate of distributions paid to stockholders based on the amount of the regular cash distribution paid immediately prior to the date the expense support payment obligation was incurred by our Adviser. “Annualized Distribution Rate” does not include special cash or stock distributions paid to stockholders. The Company did not achieve its minimum offering amount until June 25, 2014 and as a result, did not have an opportunity to invest the proceeds from the offering and realize any income from investments or pay any distributions to stockholders prior to the end of its fiscal quarter.In addition,Adviser. Other than with respect to any expense support payment attributablethis limited license, we have no legal right to the Company’s organizational and offering expenses, the Company will only reimburse the Adviser for expense support payments made by the Adviser to the extent that the payment of such reimbursement (together with any other reimbursement for organizational and offering expenses paid during such fiscal year) is limited to 15% of cumulative gross sales proceeds from the Company’s offering including the sales load (or dealer manager fee) paid by the Company.18The Expense Reimbursement Agreement is, by its terms, effective retroactively to the Company’s inception date of April 29, 2011 for Operating Expenses and from the break of escrow on June 25, 2014 for Offering Expenses. September 30, 2017, $5,292,191 has been recorded as Reimbursement due from the Adviser pursuant to the Expense Reimbursement Agreement. Of this, $4,619,337, representing an amount due to the Adviser, was netted against the Reimbursement due from Adviser and $342,715 was paid to the Company by the Adviser.Beginning the year ended December 31, 2016,2021 and June 30, 2021, distributions payable is $132,137 and $124,046, respectively, which is presented as Distributions payable on the Adviser began to reimburse less than 100%Operating Expenses,Assets and for the quarter ended September 30, 2017, the Adviser did not reimburse any Operating Expenses. Of these Operating and Offering Expenses in the table above, $1,494,398 has exceeded the three-year period for repayment and will not be repayable by the Company.The Company or the Adviser may terminate the Expense Reimbursement Agreement at any time upon thirty days’ written notice; The Expense Reimbursement Agreement will automatically terminate upon termination of the Investment Advisory Agreement or upon the Company’s liquidation or dissolution.NOTE 5 – DISTRIBUTIONS.and paid on its common stock during the ninesix months ended September 30, 2017December 31, 2021 and 2016: Distribution For the Nine Months Ended Per Share Amount Fiscal 2017 January 27, 2017 $ 0.04000 39,407 February 24, 2017 $ 0.04000 41,323 March 23, 2017 $ 0.04000 42,513 April 27, 2017 $ 0.04000 44,526 May 25, 2017 $ 0.04000 46,364 June 23, 2017 $ 0.04000 47,861 July 21, 2017 $ 0.04000 48,678 August 29, 2017 $ 0.03417 44,767 September 28, 2017 $ 0.03417 45,500 Fiscal 2016 January 22, 2016 $ 0.04500 $ 25,244 February 16, 2016 $ 0.04500 $ 26,477 March 23, 2016 $ 0.04500 $ 30,271 April 21, 2016 $ 0.04500 $ 32,832 May 19, 2016 $ 0.04500 $ 34,950 June 23, 2016 $ 0.04500 $ 36,206 July 21, 2016 $ 0.04000 $ 32,318 August 25, 2016 $ 0.04000 $ 33,293 September 22, 2016 $ 0.04000 $ 33,877 On October 23, 2017, the Company authorized2020: Distributions For the Six Months Ended FLEX Class A Common Shares, per share FLEX Class A Common Shares, Amount Distributed December 31, 2021 July 2, 9, 16, 23, and 30, 2021 $ 0.06505 $ 155,328 August 6, 13, 20, and 27, 2021 $ 0.05204 $ 123,740 September 3, 10, 17, and 24, 2021 $ 0.04488 $ 107,115 October 1, 8, 15, 22, and 29, 2021 $ 0.05610 $ 133,979 November 5, 12, 19, and 26, 2021 $ 0.04488 $ 106,670 December 3, 10, 17, 24 and 31, 2021 $ 0.05545 $ 132,137 Total for the Six Months Ended December 31, 2021 $ 758,969 Distributions For the Six Months Ended FLEX Class A Common Shares, per share FLEX Class A Common Shares, Amount Distributed December 31, 2020 July 6, 10, 17, 24 and 31, 2020 $ 0.05895 $ 139,125 August 7, 14, 21 and 28, 2020 $ 0.04716 $ 111,326 September 4, 11, 18 and 25, 2020 $ 0.05012 $ 119,152 October 2, 9, 16, 23 and 30, 2020 $ 0.06265 $ 149,320 November 6, 13, 20 and 27, 2020 $ 0.05012 $ 119,146 December 4, 11, 18 and 25, 2020 $ 0.05048 $ 120,377 Total for the Six Months Ended December 31, 2020 $ 758,446 declared a cash distribution of $0.03417 per share for the month of October 2017,have record dates subsequent to the shareholders of record as of October 26, 2017. The timing and amount of any future distributions to stockholders are subject to applicable legal restrictions and the sole discretion of the Company’s board of directors.Record Date Payment date FLEX Class A Common Shares, per share January 7, 14, 21, and 28, 2022 February 4, 2022 $ 0.04436 February 4, 11, 18, and 25, 2022 March 4, 2022 $ 0.04436 19following table reflectsinformation presented in this footnote is based on our tax year end for each period presented, unless otherwise specified.sourcesCompany's shareholders during the tax years ended December 31, 2021 and 2020 were as follows:Tax Year Ended December 31, 2020 Ordinary income $ 647,336 $ 315,994 Return of capital 926,844 1,232,806 Total distributions paid to stockholders $ 1,574,180 (2) $ 1,548,800 (3) cash2020 declared distributions are allocable to 2021 for federal income tax purposes and will be reported on the 2021 Form 1099-DIV. For the tax year ended December 31, 2021, $80,441 of the 2021 declared distributions are allocable to 2022 for federal income tax purposes and will be reported on the 2022 Form 1099-DIV.tax basis that the Company paid on its common stock during the nine months ended September 30, 2017 and 2016: Nine months ended September 30, 2017 2016 Source of Distribution Distribution
Amount Percentage Distribution
Amount Percentage Offering proceeds $ — — $ — — Borrowings — — — — Net investment income(1) — — — — Short-term capital gains proceeds from the sale of assets 47,998 12 % — — Long-term capital gains proceeds from the sale of assets — 0 % — — Distributions from common equity (return of capital) 352,941 88 % — — Expense reimbursement from sponsor — 0 % 285,469 100 % Total $ 400,939 100 % $ 285,469 100 % (1)During the nine months ended September 30, 2017 and 2016, 92.7% and 86.3%, respectively, of the Company’s gross investment income was attributable to cash income earned, and 7.3% and 13.7%, resepctively was attributable to non-cash accretion of discount and paid in-kind interest.The Company’s net investment income (loss) on a tax basis for the nine months ended September 30, 2017 and 2016 was ($77,447) and $289,892, respectively. AsRIC is permitted to designate distributions of September 30, 2017 and 2016, the Company had ($356,802) and $14,632, respectively, of undistributed (overdistributed) net investmentqualified interest income and realizedshort-term capital gains as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation. For the 2021 calendar year, 69.34% of our taxable dividends qualified as interest related dividends which are exempt from U.S. withholding tax applicable to non-U.S. stockholders. We also generate income that may be beneficial to shareholders that face interest expense limitations. Under IRC Section 163(j), a RIC is permitted to designate distributions attributable to net business interest income as section 163(j) interest dividends. For the 2021 calendar year 48.94% of our taxable ordinary dividends as of December 31, 2021 qualified as section 163(j) interest dividends. These percentages are based on athe best estimates available at the time of this filing. The final percentages will be determined with the filing of Form 1099-DIV.basis.The primary difference betweenyear ended December 31, 2021, the Company’s GAAP-basis net investmenttax character of distributions paid to stockholders through December 31, 2021 is expected to be ordinary income and its tax-basis net investment income isreturn of capital, however due to the reversal of the required accrual for GAAP purposes of incentive fees on unrealized gains even though no such incentive fees on unrealized gains are payable by the Company for the nine months ended September 30, 2017 and 2016.The following table sets forth reconciliationdifference between GAAP basis net investment incomeour fiscal and tax basis net investment income foryear ends, the nine months ended September 30, 2017 and 2016: Nine months ended September 30, 2017 2016 GAAP basis net investment income (loss) $ (77,113 ) $ 261,264 Reversal of incentive fee accrual on unrealized gains (334 ) 31,609 Other book-tax differences — (2,981 ) Tax-basis net investment income (loss) $ (77,447 ) $ 289,892 Thefinal determination of the tax attributescharacter of distributions between ordinary income, capital gains, and return of capital will not be made until we file out tax return for the Company’s distributions is made annuallytax year ended December 31, 2021.endrecognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The following reconciles the Company’s fiscal year based upon the Company’snet increase (decrease) in net assets resulting from operations to taxable income for the fulltax year ended December 31, 2021 and distributions paidDecember 31, 2020. Tax Year Ended December 31, 2021 Tax Year Ended December 31, 2020 Net increase (decrease) in net assets resulting from operations $ 483,361 $ 92,077 Net realized (gains) losses on investments 41,280 845,773 Net unrealized (gains) losses on investments 124,952 (744,114) Other temporary book-to-tax differences (359,826) (935,070) Permanent differences 318,847 579,507 Taxable income (loss) before deductions for distributions $ 608,614 (4) $ (161,827) full year. The actual tax characteristicsyear ended December 31, 2021.distributions to stockholders are reported to stockholders annually on Form 1099-DIV.20As of September 30, 2017 and 2016, the components of accumulated earnings oncapital gains earned in a tax basis wereyear may generally be carried forward and used to offset capital gains, subject to certain limitations. For the tax year ended December 31, 2021, we had capital loss carryforwards of $4,226,714 available for use in later tax years. The unused balance each year will be carried forward and utilized as follows: Nine months ended September 30, 2017 2016 Overdistributed ordinary income (income and short-term capital gains) $ (421,863 ) $ 13,607 Distributable realized gains (long-term capital gains) 65,061 1,025 Net unrealized appreciation (depreciation) on investments (1,448,359 ) 340,015 $ (1,805,161 ) $ 354,647 The ($1,448,359))gains are realized, subject to limitations. While our ability to utilize losses in the future depends upon a variety of net depreciation as of September 30, 2017 includes gross appreciation over amortized tax cost of $191,929 and gross depreciation under amortized tax cost of $1,640,288. The $340,015 of net appreciation as of September 30, 2016 includes gross appreciation over amortized tax cost of $393,427 and gross depreciation under amortized tax cost of $53,412.The aggregate costfactors that cannot be known in advance, some of the Company’s investments for U.S. federal income tax purposes totaled $12,934,038capital loss carryforwards may become permanently unavailable due to limitations by the Code. $8,635,919 as of September 30, 2017 and 2016, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis of certain assets and liabilities, amortization of offering costs, expense payments, nondeductible federal excise taxes and net operating losses, among other items. For tax year ended December 31, 2020, we increased total distributable earnings (loss) by $579,507 and decreased additional paid in capital by $579,507. Subsequent to the filing of the Form 10-Q for the quarter ended December 31, 2020, updated tax information was ($1,448,359)received and $340,015 as of Septemberwe increased total distributable earnings (loss) by an additional $192,547 and decreased additional paid in capital by an additional $192,547 for the fiscal year ended June 30, 20172021. For the year ended December 31, 2021, we increased total distributable earnings (loss) by $318,847 and 2016, respectively.decreased additional paid in capital by $318,847. Due to the difference between our fiscal and tax year end, the reclassifications for the taxable year ended December 31, 2021 are being recorded in the fiscal year ending June 30, 2022 and the reclassifications for the taxable year ended December 31, 2020 were recorded in the fiscal year ended June 30, 2021. The reclassifications, if any, for the taxable year ended December 31, 2021 will be recorded in the fiscal year ending June 30, 2022 once we file our tax return for the tax year ended December 31, 2021.6 –7 - INVESTMENT PORTFOLIOtable summarizestables summarize the composition of the Company’s investment portfolio at amortized cost and fair value as of September 30, 2017 and December 31, 2016: Nine months ended September 30, 2017
(Unaudited) Year Ended December 31, 2016 Investments at Amortized Cost(1) Investments at Fair Value Fair Value Percentage of Total Portfolio Investments at Amortized Cost(1) Investments at Fair Value Fair Value Percentage of Total Portfolio Senior Secured Loans—First Lien $ 7,600,385 $ 7,621,047 67 % $ 6,680,615 $ 6,761,313 63 % Senior Secured Loans—Second Lien 3,417,266 3,354,639 29 % 2,024,991 1,967,658 19 % Subordinated Debt 666,389 — 0 % 646,901 646,901 6 % Equity/Other 1,250,000 509,993 4 % 1,250,000 1,228,301 12 % Total $ 12,934,040 $ 11,485,679 100 % $ 10,602,507 $ 10,604,173 100 % (1)Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.21December 31, 2021 Investments at Fair Value Fair Value Percentage of Total Portfolio Senior Secured Loans-First Lien $ 29,862,308 $ 29,936,102 79 % Senior Secured Loans-Second Lien 506,472 513,717 1 % Senior Secured Notes 1,004,942 1,009,159 3 % Structured Subordinated Notes 6,274,032 5,531,643 15 % Equity/Other 681,111 682,000 2 % Total Portfolio Investments $ 38,328,865 $ 37,672,621 100 % June 30, 2021 Investments at Fair Value Fair Value Percentage of Total Portfolio Senior Secured Loans-First Lien $ 29,466,520 $ 29,876,179 79 % Senior Secured Loans-Second Lien 505,448 495,856 1 % Senior Secured Notes 973,876 951,073 3 % Structured Subordinated Notes 6,459,535 5,626,202 15 % Equity/Other 681,111 893,000 2 % Total Portfolio Investments $ 38,086,490 $ 37,842,310 100 % (1) Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments. September 30, 2017 and December 31, 2016: September 30, 2017
(Unaudited) December 31, 2016 Industry Classification Fair
Value Percentage of
Portfolio Fair
Value Percentage of
Portfolio Automotive Repair, Services, and Parking $ — 0.0 % $ 122,459 1.2 % Beverage, Food & Tobacco 1,658,531 14.4 % 1,162,891 11.0 % Business Services 4,365,138 38.0 % 2,793,526 26.3 % Consumer Services 1,178,419 10.3 % 955,659 9.0 % Energy: Oil & Gas 341,928 3.0 % 346,500 3.3 % Healthcare & Pharmaceuticals 949,567 8.3 % 1,403,008 13.2 % High Tech Industries 875,938 7.6 % 1,016,921 9.6 % Hotel, Gaming & Leisure 353,478 3.1 % — 0.0 % Media: Diversified and Production 345,471 3.0 % 347,375 3.3 % Metals & Mining 754,832 6.6 % 245,625 2.3 % Paper and Allied Products — 0.0 % 115,294 1.0 % Retail — 0.0 % 712,500 6.7 % Specialty Finance — 0.0 % 1,184,130 11.2 % Telecommunications 499,876 4.4 % — 0.0 % Transportation: Cargo — 0.0 % — 0.0 % Wholesale Trade-Nondurable Goods 162,501 1.3 % 198,285 1.9 % Total $ 11,485,679 100.0 % $ 10,604,173 100.00 % On2021 and June 30, 2017, The Company made the decision to fully mark down its remaining investment value in Javlin Financial as an unrealized loss. The decision was due to performance issues within Javlin Financial’s core business and a breakdown in restructuring negotiations between the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown at this time if there will be any value to the investment.December 31, 2021 Industry Investments at Fair Value Percentage of Portfolio Healthcare & Pharmaceuticals $ 6,268,749 17 % Structured Finance 5,531,643 15 % Services: Consumer 3,897,404 10 % Telecommunications 3,876,781 10 % High Tech Industries 2,717,400 7 % Consumer goods: Durable 2,574,934 7 % Media: Broadcasting & Subscription 2,000,000 6 % Media: Diversified and Production 1,976,488 5 % Services: Business 1,950,488 5 % Wholesale 1,906,444 5 % Automotive 1,240,606 3 % Financial 1,009,159 3 % Consumer goods: Non-Durable 995,000 3 % Banking, Finance, Insurance & Real Estate 738,872 2 % Media: Advertising, Printing & Publishing 501,250 1 % Beverage, Food & Tobacco 474,936 1 % Retail 12,467 0 % Total $ 37,672,621 100 % June 30, 2021 Industry Investments at Fair Value Percentage of Portfolio Services: Consumer $ 6,562,905 17 % Structured Finance 5,626,202 15 % Healthcare & Pharmaceuticals 5,003,106 13 % Telecommunications 3,855,595 10 % High Tech Industries 2,235,256 6 % Services: Business 1,960,647 5 % Media: Broadcasting & Subscription 1,960,000 5 % Wholesale 1,930,444 5 % Media: Diversified and Production 1,601,900 4 % Transportation: Cargo 1,470,870 4 % Automotive 1,246,875 4 % Consumer goods: Non-Durable 1,003,440 3 % Financial 951,073 3 % Banking, Finance, Insurance & Real Estate 742,613 2 % Consumer goods: Durable 717,672 2 % Media: Advertising, Printing & Publishing 485,625 1 % Beverage, Food & Tobacco 477,856 1 % Retail 10,231 0 % Total $ 37,842,310 100 % 7 –8 - FAIR VALUE OF FINANCIAL INSTRUMENTSUnder existing accounting guidance,is definedof our investments disaggregated into the three levels of the ASC 820 valuation hierarchy as of December 31, 2021 and June 30, 2021, respectively:As of December 31, 2021 Level 1 Level 2 Level 3 Total Portfolio Investments Senior Secured Loans-First Lien $ — $ 1,906,444 $ 28,029,658 $ 29,936,102 Senior Secured Loans-Second Lien — — 513,717 513,717 Senior Secured Notes — 1,009,159 — 1,009,159 Structured Subordinated Notes — — 5,531,643 5,531,643 Equity/Other — — 682,000 682,000 Total Portfolio Investments $ — $ 2,915,603 $ 34,757,018 $ 37,672,621 As of June 30, 2021 Level 1 Level 2 Level 3 Total Portfolio Investments Senior Secured Loans-First Lien $ — $ 6,771,040 $ 23,105,139 $ 29,876,179 Senior Secured Loans-Second Lien — — 495,856 495,856 Senior Secured Notes — — 951,073 951,073 Structured Subordinated Notes — — 5,626,202 5,626,202 Equity/Other — — 893,000 893,000 Total Portfolio Investments $ — $ 6,771,040 $ 31,071,270 $ 37,842,310 pricediscount rate, to determine a range of values. In determining the range of values for equity investments of portfolio companies , the enterprise value was determined by applying a market approach such as using earnings before interest income, tax, depreciation and amortization (“EBITDA”) multiples, net income and/or book value multiples for similar guideline public companies and/or similar recent investment transactions and/or an income approach, such as the discounted cash flow technique. The enterprise value technique may also be used to value debt investments which are credit impaired. For stressed debt and equity investments, asset recovery analysis was used.Company would receive upon selling an investment or payUK government is legislating to transfergrant to them.liability10% interest in certain foreign corporations that are treated as controlled foreign corporations (“CFC”) for U.S. federal income tax purposes (including our residual interest tranche investments in CLOs). Therefore, we are treated as receiving a deemed distribution (taxable as ordinary income) each year from such foreign corporations in an orderly transactionamount equal to our pro rata share of the corporation’s income for that tax year (including both ordinary earnings and capital gains). We are required to include such deemed distributions from a CFC in our taxable income and we are required to distribute at least 90% of such income to maintain our RIC status, regardless of whether or not the CFC makes an actual distribution during such year.participantdownturn. The Company is subject to credit risk in the principal or most advantageous marketnormal course of pursuing its investment objectives. Theinvestment. This accounting guidance emphasizes that valuation techniques maximizeportfolio of CLO investments is the useinability of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadlyCLOs collateral managers to return up to the assumptions that market participants would usecost value due to defaults occurring in pricing an assetthe underlying loans of the CLOs. liability, including assumptions about risk. Inputshigh-yield corporate debt, and may be observable or unobservable. Observable inputssubject to certain transfer restrictions. The Company’s ability to sell certain investments quickly in response to changes in economic and other conditions and to receive a fair price when selling such investments may be limited, which could prevent the Company from making sales to mitigate losses on such investments. In addition, CLOs are inputs that reflectsubject to the assumptions market participants would usepossibility of liquidation upon an event of default of certain minimum required coverage ratios, which could result in pricing an asset or liability developed based on market data obtained from sources independentfull loss of value to the CLOs interests and junior debt investors.Company. Unobservable inputsCompany’s investments may be significantly affected by changes in interest rates. The Company’s investments in senior secured loans through CLOs are inputs that reflectsensitive to interest rate levels and volatility. In the assumptions market participants would useevent of a significant rising interest rate environment and/or economic downturn, loan defaults may increase and result in pricing an asset or liability developedcredit losses which may adversely affect the Company’s cash flow, fair value of its investments and operating results. In the event of a declining interest rate environment, a faster than anticipated rate of prepayments is likely to result in a lower than anticipated yield.best information availableyield technique and discounted cash flow technique is the market yield (or applicable discount rate) used to discount the estimated future cash flows expected to be received from the underlying investment, which includes both future principal and interest/dividend payments. Increases or decreases in the circumstances.The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance:Level 1: Inputs that are quoted prices (unadjusted)market yield (or applicable discount rate) would result in active markets for identical assetsa decrease or liabilities.Level 2: Inputs that are quoted prices for similar assets or liabilities in active markets.Level 3: Inputs that are unobservable for an asset or liability.A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. 22As of September 30, 2017 and December 31, 2016, the Company’s investments were categorized as followsincrease, respectively, in the fair value hierarchy):Valuation Inputs Nine months ended September 30, 2017 (Unaudited) Year ended December 31, 2016 Level 1—Price quotations in active markets $ — $ — Level 2—Significant other observable inputs — — Level 3—Significant unobservable inputs 11,485,679 10,604,173 Total $ 11,485,679 $ 10,604,173 The Company’s investments asmeasurement. Management and the independent valuation firms may consider the following factors when selecting market yields or discount rates: risk of September 30, 2017 consisted of debt securities that are traded on a private over-the-counter market for institutional investors, a subordinated convertible note and two equity investments. The Company valued its debt investments by using the midpointdefault, rating of the prevailing bidinvestment and ask prices from dealers on the date of the relevant period end, which were provided by independent third-party pricing servicescomparable company investments, and screened for validity by such services. The determination of fair market value for the equity positions were determined by considering, among other factors, various income scenarios and multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues, waterfall and liquidation priority and market comparables, book value multiples, economic profits and portfolio multiples.The Company may periodically benchmark the bid and ask prices it receives from the third-party pricing services against the actual prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience of the Company’s management in purchasing and selling these investments, the Company believes that these prices are reliable indicators of fair value. However, because of the private nature of this marketplace (meaning actual transactions are not publicly reported), the Company believes that these valuation inputs are classified as Level 3 within the fair value hierarchy. The Company’s board of directors reviewed and approved the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation process.in the market approach of fairto value measurement of our investments arebased on the EV analysis may include market multiples of specified financial measures such as EBITDA, net income, or book value of comparable companies.identified guideline public companies, implied valuation multiples from precedent M&A transactions, and/or discount rates applied in a discounted cash flow technique. The Company selectsindependent valuation firm identifies a population of publicly traded companies for each investment with similar operations and key attributes to that of the portfolio company. Using valuation and operating metrics of these guideline companies’ data,public companies and/or as implied by relevant precedent transactions, a range of multiples of enterprisethe latest twelve months EBITDA, or other measure such as net income or book value, to EBITDA is typically calculated. The Company selects percentages fromindependent valuation firm utilizes the range ofdetermined multiples for purposes of determiningto estimate the portfolio company’s estimated enterprise valueEV generally based on said multiple and generally the latest twelve months’months EBITDA of the portfolio company. Significant increases or decreases in enterprise value may result in increasescompany (or other meaningful measure). Increases or decreases in the multiple would result in an increase or decrease, respectively, in EV which would result in an increase or decrease in the fair value estimatemeasurement of the debt of controlled companies and/or equity investment. 23ninesix months ended September 30, 2017 and year ended December 31, 20162021 and 2020 of investments for which significant unobservable inputs (Level 3) were used in determining fair value: For the nine months ended September 30, 2017 Senior Secured Loans - First Lien Senior Secured Loans - Second Lien Subordinated Convertible Debt Equity/Other Total Fair value at beginning of period $ 6,761,313 $ 1,967,658 $ 646,901 $ 1,228,301 $ 10,604,173 Accretion of discount (amortization of premium) 16,507 7,411 — — 23,918 Net realized gain (loss) 50,020 41,114 — — 91,134 Net change in unrealized appreciation (depreciation) (60,034 ) (5,295 ) (666,389 ) (718,307 ) (1,450,025 ) Purchases 3,897,250 2,221,250 — — 6,118,500 Paid-in-kind interest — — 19,488 — 19,488 Sales and redemptions (3,044,009 ) (877,500 ) — — (3,921,509 ) Net transfers in or out of Level 3 — — — — — Fair value at end of period $ 7,621,047 $ 3,354,638 $ — $ 509,994 $ 11,485,679 The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date $ (60,034 ) $ (5,295 ) $ (666,389 ) $ (718,307 ) $ (1,450,025 ) For the year ended December 31, 2016 Senior Secured Loans - First Lien Senior Secured Loans - Second Lien Subordinated Convertible Debt Equity/Other Total Fair value at beginning of period $ 2,389,377 $ 1,041,875 $ 609,219 $ 1,488,266 $ 5,528,737 Accretion of discount (amortization of premium) 12,124 6,512 — — 18,636 Net realized gain (loss) 19,433 298 — — 19,731 Net change in unrealized appreciation (depreciation) 117,410 (33,527 ) — (259,965 ) (176,082 ) Purchases 5,083,375 1,202,500 — — 6,285,875 Paid-in-kind interest — — 37,682 — 37,682 Sales and redemptions (860,406 ) (250,000 ) — — (1,110,406 ) Net transfers in or out of Level 3 — — — — — Fair value at end of period $ 6,761,313 $ 1,967,658 $ 646,901 $ 1,228,301 $ 10,604,173 The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date $ 117,410 $ (33,527 ) $ — $ (259,965 ) $ (176,082 ) Non-Control/Non-Affiliate Investments (less than 5.00% voting control) Senior
Secured
Loans -
First LienSenior
Secured
Loans -
Second LienSenior Secured Notes Structured
Subordinated
NotesEquity/Other Total Fair Value at June 30, 2021 $ 23,105,139 $ 495,856 $ 951,073 $ 5,626,202 $ 893,000 $ 31,071,270 Net realized gains on investments — — — — — — Net change in unrealized gains (losses) on investments (210,825) 16,836 22,804 90,941 (211,000) (291,244) Net realized and unrealized gains (losses) on investments (210,825) 16,836 22,804 90,941 (211,000) (291,244) Purchases of investments 7,241,250 — — — — 7,241,250 Payment-in-kind interest — 385 — — — 385 Accretion (amortization) of purchase discount and premium, net 134,508 640 26,123 (185,500) — (24,229) Repayments and sales of portfolio investments (7,462,845) — (1,000,000) — — (8,462,845) 5,965,044 — — — — 5,965,044 (742,613) — — — — (742,613) Fair Value at December 31, 2021 $ 28,029,658 $ 513,717 $ — $ 5,531,643 $ 682,000 $ 34,757,018 Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period $ (160,750) $ 16,836 $ 22,804 $ 90,941 $ (211,000) $ (241,169) (1) Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. Transfers out of Level 3 were due to increased observability of the inputs during the quarter ended December 31, 2021. Transfers into Level 3 were due to decreased observability of the inputs during the quarter ended December 31, 2021. Non-Control/Non-Affiliate Investments (less than 5.00% voting control) Senior
Secured
Loans -
First LienSenior
Secured
Loans -
Second LienSenior Secured Notes Structured
Subordinated
NotesEquity/Other Total Fair Value at June 30, 2020 $ 28,653,561 $ 1,213,148 $ 811,267 $ 5,198,739 $ — $ 35,876,715 Net realized gains on investments — 11,050 — — — 11,050 Net change in unrealized gains (losses) on investments 889,135 136,774 115,562 250,190 — 1,391,661 Net realized and unrealized gains (losses) on investments 889,135 147,824 115,562 250,190 — 1,402,711 Purchases of investments 1,274,290 — — — — 1,274,290 Payment-in-kind interest 14,971 184 — — — 15,155 Accretion (amortization) of purchase discount and premium, net 74,291 1,588 9,018 124,929 — 209,826 Repayments and sales of portfolio investments (624,652) (446,250) — — — (1,070,902) (4,159,604) — — — — (4,159,604) Fair Value at December 31, 2020 $ 26,121,992 $ 916,494 $ 935,847 $ 5,573,858 $ — $ 33,548,191 Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period $ 801,950 $ 139,582 $ 115,562 $ 250,190 $ — $ 1,307,284 Affiliate Investments (5.00% to 24.99% voting control) Equity/Other Total Fair Value at June 30, 2020 $ 786,988 $ 786,988 Net realized (losses) on investments — — Net change in unrealized gains (losses) on investments 208,012 208,012 Net realized and unrealized gains (losses) on investments 208,012 208,012 Fair Value at December 31, 2020 $ 995,000 $ 995,000 Net change in unrealized gains (losses) attributable to Level 3 investments still held at the end of the period $ 208,012 $ 208,012 valuation techniques andfollowing table provides quantitative information regarding significant unobservable inputs used in recurringthe fair value measurement of Level 3 fair value measurements of assetsinvestments as of September 30, 2017 were as follows:Asset Category Fair Value Primary Valuation Technique Unobservable Inputs Range Weighted Average Senior Secured First Lien Debt 7,621,047 Market quotes Indicative dealer quotes 76.50 - 102.00 99.17 Senior Secured Second Lien Debt 3,354,639 Market quotes Indicative dealer quotes 44.50 - 102.13 98.11 Subordinated Debt — Distribution waterfall/ liquidation priorities N/A N/A N/A Equity/Other — Distribution waterfall/ liquidation priorities N/A N/A N/A Equity/Other 509,993 Market comparables EBITDA multiples (x) 7.15x - 9.15x 8.15x Total $ 11,485,679 Unobservable Inputs Asset Category Fair Value Primary Valuation
Technique Inputs Range Weighted
Average Senior Secured First Lien Debt $ 5,004,549 Market quotes Indicative dealer quotes 81.92%-100.36% 97.12% Senior Secured First Lien Debt 23,025,109 Discounted Cash Flow (Yield Analysis) Market Yield 4.69%-7.97% 6.25% Senior Secured Second Lien
Debt 513,717 Market quotes Indicative dealer quotes 95.00%-100.63% 100.18% Equity/Other 682,000 Enterprise Value Waterfall (Market Approach) EBITDA multiples (x) 0.00x-8.50x 8.00x Subordinated Structured Notes 5,531,643 Discounted Cash Flow Discount Rate $ 34,757,018 (1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm. valuation techniques andfollowing table provides quantitative information regarding significant unobservable inputs used in recurringthe fair value measurement of Level 3 fair value measurements of assetsinvestments as of December 31, 2016 were as follows:Asset Category Fair Value Primary Valuation Technique Unobservable Inputs Range Weighted Average Senior Secured First Lien Debt 6,761,313 Market quotes Indicative dealer quotes 79.50 - 102.00 99.63 Senior Secured Second Lien Debt 1,967,658 Market quotes Indicative dealer quotes 58.00 - 102.19 94.31 Subordinated Debt 646,901 Market comparables Book value multiples (x) 14.6% - 17.4%/ 2.4x - 34.0x 15% Equity/Other 537,229 Market comparables Book value multiples (x) 14.6% - 17.4%/ 2.4x - 34.0x 15% Equity/Other 691,072 Market comparables EBITDA multiples (x) 7.15x - 9.15x 8.15x Total $ 10,604,173 On June 30, 2017, The Company made the decision to fully mark down its remaining investment value in Javlin Financial as an unrealized loss. The decision was due to performance issues within Javlin Financial’s core business and a breakdown in restructuring negotiations between the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown at this time if there will be any value to the investment. 24Unobservable Inputs Asset Category Fair Value Primary Valuation
Technique Inputs Range Weighted
Average Senior Secured First Lien Debt $ 1,402,784 Market quotes Indicative dealer quotes 94.85%-99.38% 96.57% Senior Secured First Lien Debt 21,702,355 Discounted Cash Flow (Yield Analysis) Market Yield 4.24%-7.64% 5.92% Senior Secured Second Lien
Debt 495,856 Market quotes Indicative dealer quotes 80.00%-97.50% 96.82% Senior Secured Notes 951,073 Discounted Cash Flow (Yield Analysis) Market Yield 16.5%-19.5% 18% Equity/Other 893,000 Enterprise Value Waterfall (Market Approach) EBITDA multiples (x) 0.00x-8.50x 8.00x Subordinated Structured Notes 5,626,202 Discounted Cash Flow Discount Rate $ 31,071,270 (1) Represents the implied discount rate based on our internally generated single-cash flows that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm. NOTE 8 – FINANCIAL HIGHLIGHTSThe following is a schedule of financial highlights of the Company forFor the three months ended September 30, 2017 and the yearsix months ended December 31, 2016: Nine Months Ended September 30, 2017 (Unaudited) Year Ended December 31, 2016 Per Share Data: Net asset value, beginning of period $ 13.55 $ 13.75 Results of operations(1) Net investment income (loss) (0.07 ) 0.48 Net realized and unrealized appreciation (depreciation) on investments(2) (1.09 ) (0.14 ) Net increase (decrease) in net assets resulting from operations (1.16 ) 0.34 Stockholder distributions(3) Distributions from net investment income (0.31 ) (0.51 ) Distributions from net realized gain on investments (0.04 ) — Net decrease in net assets resulting from stockholder distributions (0.35 ) (0.51 ) Capital share transactions Issuance of common stock(4) 0.07 (0.03 ) Offering costs(1) — — Net increase (decrease) in net assets resulting from capital share transactions 0.07 (0.03 ) Net asset value, end of period $ 12.11 $ 13.55 Shares outstanding, end of period 1,338,155 976,406 Total return(5) -8.1 % 2.2 % Ratio/Supplemental Data: Net assets, end of period $ 16,206,374 $ 13,228,702 Ratio of net investment income to average net assets -0.5 % 3.6 % Ratio of total operating expenses to average net assets 5.1 % 7.2 % Ratio of expenses reimbursed by sponsor to average net assets 0.5 % 6.5 % Ratio of expense recoupment payable to sponsor to average net assets 0.0 % 0.0 % Ratio of capital gain incentive fee to average net assets 0.00 % -0.34 % Ratio of net operating expenses to average net assets 4.6 % 0.7 % Portfolio turnover(6) 26.6 % 10.8 % (1)The per share data was derived by using the weighted average shares outstanding for the nine months ended September 30, 2017 and the year ended December 31, 2016.(2)The amount shown for a share outstanding throughout the year may not agree with the change in the aggregate gains and losses in portfolio securities for the year because of the timing of sales of the Company’s shares in relation to fluctuating market values for the portfolio.(3)The per share data for distributions reflects the actual amount of distributions paid per share during the applicable period.(4)The issuance of common stock on a per share basis reflects the incremental net asset value changes as a result of the issuance of shares of common stock in the Company’s continuous public offering and pursuant to the Company’s distribution reinvestment plan. The issuance of common stock at an offering price, net of sales commissions and dealer manager fees, that is greater or less than the net asset value per share results in an increase or decrease in net asset value per share.(5)The total return for each period presented was calculated by taking the net asset value per share as of the end of the applicable period, adding the cash distributions per share which were declared during the applicable calendar year and dividing the total by the net asset value per share at the beginning of the applicable year. The total return does not consider the effect of the sales load from the sale of the Company’s common stock. The total return includes the effect of the issuance of shares at a net offering price that is greater than net asset value per share, which causes an increase in net asset value per share. The historical calculation of total return in the table should not be considered a representation of the Company’s future total return, which may be greater or less than the return shown in the table due to a number of factors, including the Company’s ability or inability to make investments in companies that meet its investment criteria, the interest rate payable on the debt securities the Company acquires, the level of the Company’s expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which the Company encounters competition in its markets and general economic conditions. As a result of these factors, results for any previous period should not be relied upon as being indicative of performance in future periods. The total return calculations set forth above represent the total return on the Company’s investment portfolio during the applicable period and are calculated in accordance with GAAP. These return figures do not represent an actual return to stockholders.(6)Portfolio turnover for the nine months ended September 30, 2017 is not annualized. 25–- COMMITMENTS AND CONTINGENCIEStheseany legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material adverse effect upon its financial condition or results of operations. Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Net asset value at beginning of period 8.26 8.34 8.36 8.28 Net investment (loss) income 0.09 (0.09) 0.28 (0.07) Net realized and unrealized (losses) on investments (0.05) 0.51 (0.17) 0.71 Net increase (decrease) in net assets resulting from operations 0.04 0.42 0.11 0.64 Return of capital distributions (0.12) (0.13) (0.19) (0.26) Distributions from net investment income (0.04) (0.03) (0.12) (0.06) Total Distributions (0.16) (0.16) (0.31) (0.32) 0.01 — (0.01) — Net asset value at end of period $ 8.15 $ 8.60 $ 8.15 $ 8.60 0.52 % 5.12 % 1.27 % 7.88 % Supplemental Data: Net assets at end of period $ 19,409,709 $ 20,506,133 $ 19,409,709 $ 20,506,133 Average net assets $ 19,558,967 $ 20,194,918 $ 19,688,581 $ 19,982,746 Average shares outstanding 2,383,928 2,385,301 2,384,784 2,373,291 Ratio to average net assets: Total annual expenses 14.88 % 21.28 % 14.82 % 20.76 % Total annual expenses (after expense limitation agreement) 11.10 % 21.28 % 11.09 % 18.93 % Net investment (loss) income 4.44 % (4.03) % 6.74 % (1.72) % Portfolio Turnover 11.91 % 0.10 % 26.75 % 2.93 % (a) Calculated based on weighted average shares outstanding. (b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01. (c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the period. (d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the period and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded. Total return has not been annualized. Year Ended Year Ended Year Ended Year Ended Year Ended June 30, 2021 June 30, 2020 PWAY Class A PWAY Class I Net asset value at beginning of year 8.28 9.88 $ 9.89 $ 13.53 $ 13.53 Net investment (loss) income (0.08) 0.24 0.91 0.79 0.81 Net realized and unrealized (losses) on investments 0.82 (1.22) (1.11) (0.80) (0.79) Net increase (decrease) in net assets resulting from operations 0.74 (0.98) (0.20) (0.01) 0.02 Return of capital distributions (0.59) (0.57) (0.54) (0.62) (0.62) Distributions from net investment income (0.06) (0.15) (0.03) (0.24) (0.24) Total Distributions (0.65) (0.72) (0.57) (0.86) (0.86) Offering costs — — 0.61 — — (0.01) 0.10 0.15 0.05 0.04 Net asset value at end of year $ 8.36 $ 8.28 $ 9.88 $ 12.71 $ 12.73 9.03 % (10.13) % 7.52 % 0.18 % 0.33 % Supplemental Data: Net assets at end of year $ 19,947,807 $ 19,558,400 $ 23,410,715 $ 7,933,028 $ 420,136 Average net assets $ 20,055,524 $ 21,234,189 $ 12,536,923 $ 8,314,166 $ 439,787 Average shares outstanding 2,377,461 2,366,005 1,297,582 622,683 32,914 Ratio to average net assets: Total annual expenses 20.07 % 16.41 % 23.48 % 22.69 % 22.43 % Total annual expenses (after expense support agreement/expense limitation agreement) 18.44 % 13.07 % 9.11 % 8.91 % 8.73 % Net investment (loss) income (0.93) % 2.67 % 2.15 % 5.92 % 6.04 % Portfolio Turnover 17.83 % 24.56% 93.42 % 37.42 % 37.42 % (a) Calculated based on weighted average shares outstanding. (b) The per share data for distributions is the actual amount of distributions paid or payable per share of common stock outstanding during the year. Distributions per share are rounded to the nearest $0.01. (c) The amount shown represents the balancing figure derived from the other figures in the schedule, and is primarily attributable to the accretive effects from the sales of the Company’s shares and the effects of share repurchases during the year. (d) Total return is based upon the change in net asset value per share between the opening and ending net asset values per share during the year and assumes that distributions are reinvested in accordance with the Company’s distribution reinvestment plan. The computation does not reflect the sales load for any class of shares. Total return based on market value is not presented since the Company’s shares are not publicly traded. (e) Data presented for the year ended June 30, 2019 includes the shareholder activity of PWAY Class A and Class I shares, prior to the Merger and conversion into shares of the Company. The net asset value per share at beginning of year has been adjusted by the exchange ratio used in the Merger. (f) The per share data and total return include the shareholder activity prior to PWAY’s conversion to an interval fund. PWAY Class A Shares include the activity for Class R shares prior to such conversion and PWAY Class I Shares include activity for PWAY Class I Shares and Class RIA shares prior to such conversion. Year Ended June 30, 2017 PWAY Class R, RIA and I Net asset value at beginning of year $ 12.81 Net investment income 0.71 Net realized and unrealized (losses) on investments 0.68 Net increase (decrease) in net assets resulting from operations 1.39 (0.92) Offering costs 0.03 0.22 Net asset value, end of year or period $ 13.53 13.20 % Supplemental Data: Net assets, end of year or period $ 8,405,744 Average net assets $ 7,508,410 Average shares outstanding 550,843 Ratio to average net assets: Expenses without expense support payment 22.05 % Expenses after expense support payment 10.52 % Net investment income 5.19 % Portfolio turnover 27.54 % Revolving Credit Facility Total Amount Outstanding Asset Coverage per Unit(1) Involuntary Liquidating Preference per Unit(2) Average Market Value per Unit(2) December 31, 2021 $ 21,000,000 $ 1,924 — — September 30, 2021 $ 21,000,000 $ 1,938 — — June 30, 2021 $ 21,000,000 $ 1,950 — — March 31, 2021 $ 21,000,000 $ 1,971 — — December 31, 2020 $ 21,000,000 $ 1,976 — — September 30, 2020 $ 21,000,000 $ 1,947 — — June 30, 2020 $ 21,000,000 $ 1,931 — — March 31, 2020 $ 21,000,000 $ 1,914 — — December 31, 2019 $ 21,000,000 $ 2,018 — — September 30, 2019 $ 15,500,000 $ 2,461 — — June 30, 2019 $ 5,500,000 $ 5,256 — — (1) The asset coverage ratio is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit. (2) This column is inapplicable. Investment Income Net Investment Income (Loss) Net Realized and Net Change in Unrealized (Losses) Gains Net Increase (Decrease) in Net Assets from Operations Quarter Ended Total Total Total Total September 30, 2019 $748,644 $0.31 $150,724 $0.06 $(744,821) $(0.31) $(594,097) $(0.25) December 31, 2019 853,848 0.36 50,584 0.02 (347,245) (0.15) (296,661) (0.13) March 31, 2020 900,371 0.38 219,821 0.09 (2,566,076) (1.09) (2,346,255) (1.00) June 30, 2020 839,755 0.35 145,913 0.06 773,450 0.32 919,363 0.38 September 30, 2020 $848,045 $0.36 $31,475 $0.01 $475,633 $0.20 $507,108 $0.21 December 31, 2020 871,095 0.37 (203,503) (0.09) 1,215,336 0.51 1,011,833 0.42 March 31, 2021 943,080 0.40 (59,179) (0.02) 320,832 0.13 261,653 0.11 June 30, 2021 849,133 0.36 44,992 0.02 (74,998) (0.03) (30,007) (0.01) September 30, 2021 $995,544 $0.42 $446,574 $0.19 $(298,723) $(0.13) $147,851 $0.06 December 31, 2021 759,779 0.32 217,191 0.09 (113,341) (0.05) 103,850 0.04 (1) Per share amounts are calculated using the weighted average number of common shares outstanding for the period presented. As such, the sum of the quarterly per share amounts above will not necessarily equal the per share amounts for the fiscal year. Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Net increase (decrease) in net assets resulting from operations $ 103,850 $ 1,011,833 $ 251,701 $ 1,518,941 Weighted average common shares outstanding 2,383,928 2,385,301 2,384,784 2,373,291 Net increase (decrease) in net assets resulting from operations per share $ 0.04 $ 0.42 $ 0.11 $ 0.64 10 –14 - SUBSEQUENT EVENTSthe accompanyingof issuance of these consolidated financial statements were available to be issued on November 14, 2017, and notes the following:OctoberJanuary 1, 20172022 and ending November 14, 2017,February 8, 2022, the Company sold 29,739.12issued 14,225 shares of its common stock for total gross proceeds of $403,200, issued amounts pursuant to its distribution reinvestment plan in the amount of $25,167,$116,514. repurchased 5,968.22governance (“ESG”) focused fund, pursuant to which the Company will implement an investment strategy to incorporate certain ESG criteria, which is available on the Company's website at www.prospectsustainablebdc.com. To effectuate the Name Change, the Company amended its Fourth Articles of Amendment and Restated, as amended and supplemented, and amended and restated its Second Amended and Restated Bylaws. cost of $73,409201,626 shares were validly tendered and not withdrawn pursuant to the Company’s Repurchase Program.26TableContentsdirectors declared distributions for the months of December 2021, January 2022 and February 2022, which reflect a targeted annualized distribution rate of 7.0% based on the current net asset value. The distributions have weekly record dates as of the close of business of each week in December 2021, January 2022 and February 2022 and equal a weekly amount of $0.01109 per share of common stock. The distributions will be payable monthly to stockholders of record as of the weekly record dates set forth below.Record Date Payment Date FLEX Class A Common Shares, per share January 7, 14, 21, and 28, 2022 February 4, 2022 0.04436 February 4, 11, 18, and 25, 2022 March 4, 2022 0.04436 Record Date Payment Date FLEX Class A Common Shares, per share March 25, 2022 April 1, 2022 0.04376 April 29, 2022 May 6, 2022 0.05470 May 27, 2022 June 3, 2022 0.04376 Operations.Operations and analysis should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q.Except as otherwise specified, references10-Q (the "Quarterly Report"). In addition to “we,” “us,” “our,” orhistorical information, the “Company,” refer to Triton Pacific Investment Corporation, Inc.Forward-Looking StatementsSomefollowing discussion and other parts of the statements in this quarterly report on Form 10-Q constituteQuarterly Report contain forward-looking statements, which relate to future events or our performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including, but not limited to, statements as to:●our future operating results;●our business prospects and the prospects of our portfolio companies;●changes in the economy;●risk associated with possible disruptions in our operations or the economy generally;●the effect of investments that we expect to make;●our contractual arrangements and relationships with third parties;●actual and potential conflicts of interest with Triton Pacific Adviser, LLC and its affiliates;●the dependence of our future success on the general economy and its effect on the industries in which we invest;●the ability of our portfolio companies to achieve their objectives;●the use of borrowed money to finance a portion of our investments;●the adequacy of our financing sources and working capital;●the timing of cash flows, if any, from the operations of our portfolio companies;●the ability of Triton Pacific Adviser, LLC and its Sub-Adviser to locate suitable investments for us and to monitor and administer our investments;●the ability of Triton Pacific Adviser, LLC, its Sub-Adviser and its affiliates to attract and retain highly talented professionals;●our ability to qualify and maintain our qualification as a RIC and as a BDC; and●the effect of changes in laws or regulations affecting our operations or to tax legislation and our tax position.Such forward-looking statements may include statements preceded by, followed by orinformation that otherwise include the words “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions. The forward looking statements contained in this annual report involveinvolves risks and uncertainties. Our actual results couldmay differ materiallysignificantly from thoseany results expressed or implied or expressed in theby these forward-looking statements for any reason, includingdue to the factors set forth as “Riskdiscussed in Part II, “Item 1A. Risk Factors” in this report and in our last effective registration statement filed on form N-2 dated May 2, 2017, filed with“Forward-Looking Statements” appearing elsewhere herein.Securities and Exchange Commission (the “SEC”) on the same day.We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, shareholders are advised to consult any additional disclosures that we may make directly to them or through reports that we have filed or in the future may file with the SEC, including quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K.27We are a publicly registered, non-traded fund focused on private equity, structured as a business development company that primarily makes equity, structured equity, and debt investments in small to mid-sized private U.S. companies. Structured equity refers to derivative investment products, including convertible notes and warrants, designed to facilitate highly customized risk-return objectives. Our private equity investments will generally take the form of direct investments in common and preferred equity, as well as structured equity investments such as convertible notes and warrants. non-diversified management investment company that has elected to be treatedregulated as a business development company under the Company Act. Triton Pacific Adviser, LLC (“Triton Pacific Adviser”BDC”), which is a registered investment adviser under the Investment AdvisersCompany Act of 1940, as amended (the “Advisers“1940 Act”) serves as our investment adviser and TFA Associates, LLC serves as our administrator. Each of these companies is affiliated with Triton Pacific Group, Inc., a private equity investment management firm, and its subsidiary, Triton Pacific Capital Partners, LLC (“TPCP”), a private equity investment fund management company, each focused on debt and equity investments in small to mid-sized private companies.We primarily make debt investments likely to generate current income and equity investments in small to mid-sized private U.S. companies either alone or together with other private equity sponsors.. Our investment objective is to generate current income and, long-termas a secondary objective, capital appreciation.Triton Pacific Adviser is responsible for sourcing potential investments, conducting due diligence on prospective investments, analyzingappreciation by targeting investment opportunities structuring investmentswith favorable risk-adjusted returns. We intend to meet our investment objective by primarily lending to and monitoring our portfolio on an ongoing basis. In addition,investing in the debt of privately-owned U.S. middle market companies, which we define as companies with annual revenue between $50 million and $2.5 billion. We have elected and intend to continue to qualify annually qualify to be treated,taxed for U.S. federal income tax purposes as a regulated investment company (“RIC”("RIC"), under subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”"Code").Our investment objectives are to maximizeportfolio’s total returnadviser, and Prospect Administration LLC (the "Administrator" or "Prospect Administration"), an affiliate of PFIM and our new investment adviser, Prospect Capital Management L.P. (the "Adviser"), became our administrator. Although PWAY merged with and into us, PWAY is considered the accounting survivor of the Merger and its historical financial statements are included and discussed herein and in other applicable reports that we file with the SEC. generating long-term capital appreciationfiling Articles of Amendment to our Fourth Articles of Amendment and Restatement, as amended and supplemented. See "Recent Developments" for information regarding our subsequent name change. our private equity investmentsan annual rate of 1.75% to 1.20% and current income from our debt investments. eliminate the incentive fee payableintend to make both our debt and private equity investments in small to mid-sized private U.S. companies either alone or together with other private equity sponsors.We are offeringpreviously publicly offered for sale a maximum amount of $300,000,000 in shares of our common stock.We commenced our initial continuous publicstock on a "best efforts" basis with Triton Pacific Securities, LLC (the "Dealer Manager") serving as the dealer manager for the offering pursuant to a dealer manager agreement, as amended. The Dealer Manager was not required to sell any specific number or dollar amount of shares through our initial registration statement (File No. 333-174873) that was declared effective by the SEC on September 4, 2012. Rule 415 promulgated under the Securities Act requires that a registration statement not be used for more than three years frombut would use its effective date, subjectbest efforts to a 180-day grace period. On September 2, 2015, we filed a registration statement with the SEC (File No. 333-206730) in order to continue our continuous public offering of shares for an additional three years or until all ofsell the shares registered herein are sold. The registration statement for our follow-onoffered. Effective February 19, 2021, the offering was declaredterminated and, as a result, the dealer manager agreement terminated in accordance with its terms and the Dealer Manager ceased serving as our dealer manager effective as of such date. We are engaged in discussions with and due diligence of other firms to potentially serve in the future capacity as our dealer manager regarding potential future capital raises by the SEC on March 17, 2016 and our most-recent post-effective amendment to our registration was declared effective by the SEC on May 3, 2017.us.November 14, 2017,February 8, 2022, we have sold a total of 1,369,940.312,372,865 shares of common stock, for gross proceeds of approximately $20,155,355, including 334,408 shares issued pursuant to our distribution reinvestment plan, in the amountfor gross proceeds of $551,848,approximately $31,710,271, including the reduction due to $451,426($3,975,709) in shares repurchased pursuant to the Company’s Repurchase Program,share repurchase program and 14,815 shares of common stock sold to Triton Pacific Adviser, LLC, our former investment adviser (the “TPIC Adviser”) in exchange for gross proceeds of $200,003. As a result of the Merger, the Company issued 775,193 shares.Our investment objective ismaximize our portfolio’s total return by generating current income from our debt investmentsDecember 31, 2021, the COVID-19 pandemic has had a significant impact on the U.S. and long-term capital appreciation from our equity investments. We will seek to meet our investment objectives by:-Focusing primarilyglobal economy and on debt and equity investments in small and mid-sized private U.S. companies, which we define as companies with annual revenueus.from $10 million to $ 250 million at the timeimpact of investment;28-Leveraging the experience and expertiseCOVID-19 pandemic on the financial performance of our Adviser,current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy, all of which are highly uncertain and cannot be predicted. To the extent our portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on its Sub-Adviserfuture net investment income, the fair value of its portfolio investments, its financial condition and its affiliates in sourcing, evaluatingthe results of operations and structuring transactions;-Employing disciplined underwriting policies and rigorous portfolio management;-Developing our equity portfolio through our Adviser’s Value Enhancement Program, more fully discussed below in “Investment Objectives and Policies – Investment Process”; and-Maintaining a well-balanced portfolio.We intend to be active in both debt and equity investing. We will seek to provide current income to our investors through our debt investments while seeking to enhance our investors’ overall returns through long term capital appreciationfinancial condition of our equity investments. We intend to be opportunistic in our investment approach, allocating our investments between debt and equity, depending on:-Investment opportunities-Market conditions-Perceived RiskDepending on the amount of capital we raise in the Offering and subject to subsequent changes in our capital base, we expect that our investments will generally range between $250,000 and $25 million per portfolio company, although this range may change in the discretion of our Adviser, subject to oversight by our board of directors. Prior to raising sufficient capital to finance investments in this range and as a strategy to manage excess cash, we may make smaller and differing types of investments in, for example, high quality debt securities, and other public and private yield-oriented debt and equity securities, directly and through our Sub-Adviser. has engaged ZAIS to act as our investment sub-adviser. ZAIS assists our with identifying, evaluating, negotiating and structuring syndicated debt investments and makes investment recommendations for approval by our Adviser. ZAIS is a Delaware limited liability company and is a registered as an investment adviser under the Advisers ActAct. Our Adviser is led by John F. Barry III and had approximately $3.75 billionM. Grier Eliasek, two senior executives with significant investment advisory and business experience. Mr. Barry currently controls our Adviser.assets under managementa total net portfolio decline of ($96,176) for the three months ended December 31, 2021 and a net portfolio growth of $121,652 for the six months ended December 31, 2021.30, 2017. ZAIS is not an affiliate17, 2021, under our share repurchase program, we made a tender offer to purchase up to the number of us or our Adviser and does not own anyshares of our shares.We will generally sourceissued and outstanding Class A common stock we could repurchase with the proceeds we receive from the issuance of shares under our private equity investments through third party intermediariesdistribution reinvestment plan prior to the expiration of this tender offer. The total proceeds under the distribution reinvestment plan prior to this tender offer was $200,121. The tender offer was for cash at a price equal to the net asset value per share as of October 22, 2021. The offer expired at 4:00 P.M., Eastern Time, on October 20, 2021 and our debt investments primarily through our Advisera total ofSub-Adviser. We will invest only after we conduct a thorough evaluationnot withdrawn pursuant to the offer. In accordance with the terms of the risksoffer, the Company purchased 24,287 shares validly tendered and strategic opportunitiesnot withdrawn at a price equal to $8.24 per share for an aggregate purchase price of an investmentapproximately $200,121. price (or interest rate intotal of 201,626 shares were validly tendered and not withdrawn pursuant to the case of debt investments) has been established that reflectsoffer. In accordance with the intrinsic valueterms of the investment opportunity. We will endeavoroffer, the Company purchased 23,462 shares validly tendered and not withdrawn at a price equal to identify$8.13 per share for an aggregate purchase price of approximately $190,747.best exit strategy for each private equity investment, including methodology (for example, a sale, company redemption, or public offering)dividend reinvestment plan, we issued 7,956, 6,339, 7,861 and an appropriate time horizon. We will then attempt to influence the growth and development of each portfolio company accordingly to maximize our potential return on investment using such exit strategy or another strategy that may become preferable due to changing market conditions. We anticipate that the holding period for most6,364 shares of our private equity investments will range from four to six years, but we will be flexible in order to take advantage of market opportunities or to overcome unfavorable market conditions.generateprimarily lend to and invest in the majoritydebt of our current income by investingprivately-owned U.S. middle market companies. We may on occasion invest in smaller or larger companies if an attractive opportunity presents itself, especially when there are dislocations in the capital markets. We expect to focus primarily on making investments in syndicated senior secured first lien loans, syndicated senior secured second lien secured loans, and to a lesser extent, subordinated debt, of middle market companies in a broad range of industries. Syndicated secured loans refer to commercial loans provided by a group of smalllenders that are structured, arranged, and administered by one or several commercial or investment banks, known as arrangers. These loans are then sold (or syndicated) to mid-sized private U.S. companies.other banks or institutional investors. Syndicated secured loans may have a first priority lien on a borrower’s assets (i.e., senior secured first lien loans), a second priority lien on a borrower’s assets (i.e., senior secured second lien loans), or a lower lien or unsecured position on the borrower’s assets (i.e., subordinated debt). We may purchase interests in loans through secondary market transactions in the “over-the-counter” market for institutional loans or directly fromexpect our target companies as primary market investments. In connectioncredit investments will typically have initial maturities between three and ten years and generally range in size between $1 million and $100 million, although the investment size will vary with the size of our capital base. We expect that the majority of our debt investments wewill bear interest at floating interest rates, but our portfolio may also include fixed-rate investments. We also expect to make our investments directly through the primary issuance by the borrower or in the secondary market.occasion receive equity interests suchour analysis of the credit markets, which may result in our portfolio becoming more concentrated in particular types of credit instruments (such as warrants or options as additional consideration. The senior secured loans) and second lien secured loansless invested in which we invest generally will have stated termsother types of three to seven years and any subordinated investments that we make generally will have stated terms of up to ten years. However, there is no limit on the maturity or duration of any security we may hold in our portfolio.credit instruments. The loans in which we intend to invest are often rated by a nationally recognized ratings organization, and generally carry a rating below investment grade (rated lower than “Baa3” by Moody’s Investors Service or lower than “BBB-” by Standard & Poor’s Corporation –- also known as “high yield” or “junk bonds”). However, we may also invest in non-rated debt securities.29generally will not be permittedhave in the past and expect in the future to co-invest alongsideon a concurrent basis with certain affiliates, consistent with applicable regulations and our allocation procedures. On January 13, 2020, the parent company of the Adviser including TPCP and certain of its affiliates, unless we obtainreceived an exemptive order from the SEC granting the ability to negotiate terms, other than price and quantity, of co-investment transactions with other funds managed by our Adviser or certain affiliates, including us, Prospect Capital Corporation and Priority Income Fund, Inc., subject to certain conditions included therein. Under the terms of the Order permitting us to co-invest with other funds managed by our Adviserotherwise permitted underconsistent with the interests of our stockholders and is consistent with our investment objective and strategies. The Order also imposes reporting and record keeping requirements and limitations on transactional fees. We may only co-invest with certain entities affiliated with our Adviser in negotiated transactions originated by our Adviser or its affiliates in accordance with such Order and existing regulatory guidance, such as syndicatedguidance. See Note 4 of the Consolidated Financial Statements. These co-investment transactions where price is the only negotiated term, and approval from our independent directors. We have applied for an exemptive relief order for co-investments, though there is no assurance that such exemptions will be granted, and in either instance, conflicts of interests with affiliates of our Adviser might exist. Should suchmay give rise to conflicts of interest arise, weor perceived conflicts of interest among us and the other participating accounts. To mitigate these conflicts, our Adviser have developed policies and procedures for dealing with such conflicts which require the Adviserits affiliates will seek to (i) execute suchallocate portfolio transactions for all of the participating investment accounts, including ours,us, on a fair and equitable basis, taking into account such factors as the relative amounts of capital available for new investments, the then-currentapplicable investment objectivesprograms and portfolio positions, of each party,the clients for which participation is appropriate and any other factors deemed appropriate and (ii) endeavor to obtain the advice of Adviser personnel not directly involved with the investment giving rise to the conflict as to such appropriateness and other factors as well as the fairness to all parties of the investment and its terms.appropriate. We intend to make all of our investments in compliance with the Company1940 Act and in a manner that will not jeopardize our status as a BDC or RIC.Company1940 Act to borrow funds to finance portfolio investments. To enhance our opportunity for gain, we intend to employ leverage as market conditions permit, but, as required underpermit. At the Company Act, in no event will2019 Annual Meeting, TPIC’s stockholders approved a proposal allowing us to modify our asset coverage ratio requirement from 200% to 150%. As a result, we were allowed to increase our leverage exceed 50%capacity effective as of the value of our assets. While we have not yet determined the amount of leverage we will use, we do not currently anticipate that we would approach the 50% maximum level frequently or at all.March 16, 2019. The use of leverage, although it may increase returns, may also increase the risk of loss to our investors, particularly if the level of our leverage is high and the value of our investments declines.and equity interests and CLOs that we hold. In addition, we may generate revenue from our portfolio companies in the form of commitment, origination, structuring or diligence fees, monitoring fees, fees for providing managerial assistance and possibly consulting fees and performance-based fees. Any such fees will be recognized as earned.proposed investment adviser agreement.Investment Advisory Agreement with the Adviser (the "Investment Advisory Agreement"). The advisory fees will compensate our Adviser for its work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments.●corporate and organizational expenses relating to offerings of our common stock, subject to limitations included in the investment advisory and management services agreement;●the cost of calculating our net asset value, including the cost of any third-party valuation services;●the cost of effecting sales and repurchase of shares of our common stock and other securities;●investment advisory fees;●fees payable to third parties relating to, or associated with, making investments and valuing investments, including fees and expenses associated with performing due diligence reviews of prospective investments;●transfer agent and custodial fees;30Table• corporate and organizational expenses relating to offerings of Contents●fees and expenses associated with marketing efforts;●federal and state registration fees;●federal, state and local taxes;●independent directors’ fees and expenses;●costs of proxy statements, stockholders’ reports and notices;●fidelity bond, directors and officers/errors and omissions liability insurance and other insurance premiums;●direct costs such as printing, mailing, long distance telephone, and staff;●fees and expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act;●costs associated with our reporting and compliance obligations under the Company Act and applicable federal and state securities laws;●brokerage commissions for our investments;●legal, accounting and other costs associated with structuring, negotiating, documenting and completing our investment transactions;●all other expenses incurred by our Adviser, in performing its obligations, subject to the limitations included in the investment adviser agreement; and●our common stock, subject to limitations included in the investment advisory and management services agreement; or us in connection with administering our business, including payments to our Administrator under the administration agreement that will be based upon our allocable portion of its overhead and other expenses incurred in performing its obligations under the administration agreement, including rent and our allocable portion of the costs of compensation and related expenses of our chief executive officer, chief compliance officer and chief financial officer and their respective staffs.Reimbursement of TFA Associates, LLC for Administrative ServicesTFA Associatesour Administrator for the administrative expenses necessary for its performance of services to us. Such costs will be reasonably allocated to us on the basis of assets, revenues, time records or other reasonable methods. However, such reimbursement is made in an amount equal to the lower of the Administrator’s actual costs or the amount that we would be required to pay for comparable administrative services in the same geographic location. We will not reimburse our Administrator for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of TFA Associates.ninethree months and six months ended September 30, 2017,December 31, 2021, we made investments in portfolio companies totaling $6,118,500.purchased investment securities (excluding short-term securities) of $4,501,250 and $10,236,250, respectively. During the same three month and six month period, we sold investmentssales and received principal repaymentsredemptions of $3,926,031.investment securities (excluding short-term securities) were $4,597,426 and $10,114,598, respectively, resulting in a total net portfolio decline of ($96,176) for the three months ended December 31, 2021 and a net portfolio growth of $121,652 for the six months ended December 31, 2021. As of September 30, 2017,December 31, 2021, our investment portfolio, with a total fair value of $11,485,679,$37,672,621, consisted of interests in 33 portfolio companies (66.4%50 investments (80% in first lien senior secured loans, 29.2%3% in second lien senior secured loans,notes, 2% in equity/other and 4.4%15% in equity)CLO - subordinated notes). The portfolio companies that comprised our portfolio as of such date had an average annual EBITDA of approximately $162.4 million. September 30, 2017,December 31, 2021, there remains to be global uncertainty surrounding the investmentsCOVID-19 pandemic, which has caused severe disruptions in our debt portfolio were purchased at a weighted average price of 98.3% of par or statedthe global economy and has negatively impacted the fair value and performance of certain investments since the weighted average credit rating ofpandemic began. For the three months and six months ended December 31, 2021, the aggregate decreases in fair value and net unrealized depreciation on investments were driven by certain investments in our portfolio that were rated (constituting 95.6%whose valuations continue to reflect factors such as specific industry concerns, uncertainty about the duration of business shutdowns and near-term liquidity needs. For additional information concerning the COVID-19 pandemic and its potential impact on our business and our operating results, see Part II, Item 1A. Risk Factors, “Risk Factors - The COVID-19 pandemic has caused severe disruptions in the global economy, which has had, and may continue to have, a negative impact on our portfolio based oncompanies and our business and operations.” our investments) was B2 based upon the Moody’s scale. Our estimated gross annual portfolio yield was 6.69% based upon the amortized cost$38,750,443, consisted of ourinterests in 54 investments (80% in senior secured loans, 2% in senior secured notes, 3% in equity/other and was 7.41% on the debt portfolio alone. Our gross annual portfolio yield represents the expected yield to be generated by us on15% in CLO - subordinated notes). based on the compositionwith a total fair value of our$37,672,621, consisted of interests in 25 portfolio as of September 30, 2017. The portfolio yield does not represent an actual investment return to stockholders.31Total Portfolio Activitytables presenttable presents certain selected information regarding ourinvestment activity for the nine months ended September 30, 2017composition and year endedweighted average yields as of December 31, 2016: Net Investment Activity Nine months ended September 30, 2017 Year ended
December 31, 2016 Purchases $ 6,118,500 $ 6,285,875 Sales and Redemptions (3,921,509 ) (1,110,406 ) Net Portfolio Activity $ 2,196,991 $ 5,175,469 The following tables summarize the composition of our purchases as of September2021 and June 30, 2017 and December 31, 2016: Nine months ended September 30, 2017 (Unaudited) Year Ended December 31, 2016 Investments at Amortized
Cost(1) Investments at Fair Value Fair Value Percentage of Total Portfolio Investments at Amortized
Cost(1) Investments at Fair Value Fair Value Percentage of Total Portfolio Senior Secured Loans—First Lien $ 7,600,385 $ 7,621,047 67 % $ 6,680,615 $ 6,761,313 63 % Senior Secured Loans—Second Lien 3,417,266 3,354,639 29 % 2,024,991 1,967,658 19 % Subordinated Debt 666,389 — 0 % 646,901 646,901 6 % Equity/Other 1,250,000 509,993 4 % 1,250,000 1,228,301 12 % Total $ 12,934,040 $ 11,485,679 100 % $ 10,602,507 $ 10,604,173 100 % (1)Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments. September 30, 2017 December 31, 2016 Number of Portfolio Companies 33 35 % Variable Rate (based on fair value) 95.6% 82.3% % Fixed Rate (based on fair value) 0.0% 6.1% % Non-Income Producing Equity or Other Investments (based on fair value) 4.4% 11.6% Average Annual EBITDA of Portfolio Companies 162.4MM 114.6MM Weighted Average Credit Rating of Investments that were Rated B2 B2 % of Investments on Non-Accrual (based on amortized cost) — — Gross Portfolio Yield Prior to Leverage (based on amortized cost) 7.4% 6.7% 32As of December 31, 2021 As of June 30, 2021 Amortized Cost Fair Value As Percent of
Total Fair ValueAmortized Cost Fair Value As Percent of
Total Fair ValueSenior Secured Loans-First Lien $ 29,862,308 $ 29,936,102 79 % $ 29,466,520 $ 29,876,179 79 % Senior Secured Loans-Second Lien 506,472 513,717 1 % 505,448 495,856 1 % Equity/Other 681,111 682,000 2 % 681,111 893,000 2 % Senior Secured Notes 1,004,942 1,009,159 3 % 973,876 951,073 3 % Structured subordinated notes 6,274,032 5,531,643 15 % 6,459,535 5,626,202 15 % Total $ 38,328,865 $ 37,672,621 100 % $ 38,086,490 $ 37,842,310 100 % Number of portfolio companies 25 24 Number of Structured subordinated notes 24 24 97% 97% 3 % 3 % 6 % 6 % 7 % 14 % % Weighted Average Yield on Structured Subordinated Notes (based on cost) 13 % 18 % 7 % 9 % September 30, 2017 and December 31, 2016: September 30, 2017 (Unaudited) December 31, 2016 Industry Classification Fair
Value Percentage of Portfolio Fair
Value Percentage of Portfolio Automotive Repair, Services, and Parking $ — 0.0 % $ 122,459 1.2 % Beverage, Food & Tobacco 1,658,531 14.4 % 1,162,891 11.0 % Business Services 4,365,138 38.0 % 2,793,526 26.3 % Consumer Services 1,178,419 10.3 % 955,659 9.0 % Energy: Oil & Gas 341,928 3.0 % 346,500 3.3 % Healthcare & Pharmaceuticals 949,567 8.3 % 1,403,008 13.2 % High Tech Industries 875,938 7.6 % 1,016,921 9.6 % Hotel, Gaming & Leisure 353,478 3.1 % — 0.0 % Media: Diversified and Production 345,471 3.0 % 347,375 3.3 % Metals & Mining 754,832 6.6 % 245,625 2.3 % Paper and Allied Products — 0.0 % 115,294 1.0 % Retail — 0.0 % 712,500 6.7 % Specialty Finance — 0.0 % 1,184,130 11.2 % Telecommunications 499,876 4.4 % — 0.0 % Transportation: Cargo — 0.0 % — 0.0 % Wholesale Trade-Nondurable Goods 162,501 1.3 % 198,285 1.9 % Total $ 11,485,679 100.0 % $ 10,604,173 100.00 % We do2021 and June 30, 2021: December 31, 2021 Industry Investments at Amortized Cost Percentage of Portfolio Investments at Fair Value Percentage of Portfolio Healthcare & Pharmaceuticals $ 6,009,518 16 % $ 6,268,749 17 % Structured Finance 6,274,032 16 % 5,531,643 15 % Services: Consumer 4,002,765 10 % 3,897,404 10 % Telecommunications 3,753,045 10 % 3,876,781 10 % High Tech Industries 2,711,901 7 % 2,717,400 7 % Consumer goods: Durable 2,565,335 7 % 2,574,934 7 % Media: Broadcasting & Subscription 2,000,000 5 % 2,000,000 6 % Media: Diversified and Production 1,970,794 5 % 1,976,488 5 % Services: Business 1,950,488 5 % 1,950,488 5 % Wholesale 1,941,741 5 % 1,906,444 5 % Automotive 1,229,695 3 % 1,240,606 3 % Financial 1,004,942 3 % 1,009,159 3 % Consumer goods: Non-Durable 985,797 3 % 995,000 3 % Banking, Finance, Insurance & Real Estate 737,836 2 % 738,872 2 % Media: Advertising, Printing & Publishing 495,768 1 % 501,250 1 % Beverage, Food & Tobacco 475,750 1 % 474,936 1 % Retail 219,458 1 % 12,467 0 % Total $ 38,328,865 100 % $ 37,672,621 100 % June 30, 2021 Industry Investments at Amortized Cost Percentage of Portfolio Investments at Fair Value Percentage of Portfolio Services: Consumer $ 6,491,735 17 % $ 6,562,905 17 % Structured Finance 6,459,535 17 % 5,626,202 15 % Healthcare & Pharmaceuticals 4,531,018 12 % 5,003,106 13 % Telecommunications 3,740,188 10 % 3,855,595 10 % High Tech Industries 2,253,946 6 % 2,235,256 6 % Services: Business 1,960,647 5 % 1,960,647 5 % Media: Broadcasting & Subscription 1,937,073 5 % 1,960,000 5 % Wholesale 1,949,670 5 % 1,930,444 5 % Media: Diversified and Production 1,461,047 4 % 1,601,900 4 % Transportation: Cargo 1,457,657 4 % 1,470,870 4 % Automotive 1,234,894 3 % 1,246,875 4 % Consumer goods: Non-Durable 990,075 3 % 1,003,440 3 % Financial 973,876 3 % 951,073 3 % Banking, Finance, Insurance & Real Estate 741,476 2 % 742,613 2 % Consumer goods: Durable 712,061 2 % 717,672 2 % Media: Advertising, Printing & Publishing 495,129 1 % 485,625 1 % Beverage, Food & Tobacco 477,390 1 % 477,856 1 % Retail 219,073 0 % 10,231 0 % Total $ 38,086,490 100 % $ 37,842,310 100 % each as defined in the Company1940 Act. We are an affiliate of two portfolio companies, Javlin Capital, LLC (held through TPJ Holdings, Inc. and a convertible note) and Injured Workers Pharmacy, LLC (held through ACON IWP Investors I, L.L.C.). In general, under the Company Act, we would be presumed to “control” a portfolio company if we owned 25% or more of its voting securities and would be an “affiliate” of a portfolio company if we owned 5% or more of its voting securities.Portfolio Asset QualityIn addition to various risk management and monitoring tools, our Subadviser uses an investment rating system to characterize and monitor the expected level of returns on each investment in our debt portfolio. All of the investments included in our Subadviser’s rating systems refer to non-rated debt securities or rated debt securities that carry a rating below investment grade (rated lower than “Baa3” by Moody’s Investors Service or lower than “BBB-” by Standard & Poor’s Corporation also known as “junk bonds”). These ratings are on a scale of 1 to 8 as follows:1.Highest quality obligors, minimal medium-term default risk; possibly moving towards investment grade status.2.High quality obligors, but not likely to move towards investment grade in the medium term; performing at or in excess of expected levels; solid liquidity; conservative credit statistics.3.Credits of with a history of performing with leverage (repeat issuers); moderate credit statistics currently performing at or in excess of expected levels; solid liquidity; no expectation of covenant defaults or third-party ratings downgrades.4.Credits new to the leveraged loan universe; currently performing within a range of expected performance; moderate to aggressive credit statistics.5.Credits new to the leveraged loan universe; currently performing within a range of expected performance; aggressive credit statistics or weak industry characteristics.6.Credits placed in this category are experiencing potential liquidity problems, but the issues are not imminent (more than 12 months).7.Credits placed in this category are experiencing nearer-term liquidity problems (within 12 months).338.Credits placed in this category have experienced either a technical or actual payment default which may require a write-down within our respective portfolios.Categories 1 through 5 are performing in line with expectation, while categories 6-8 are closely watched for or have experienced liquidity problems and/or default.distributioncomposition of our investments on the 1 to 8 scale at fair valueinvestment portfolio by level of control as of September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Investment Rating Fair Value Percentage Fair Value Percentage 1 $ — 0.0 % $ — 0.0 % 2 489,269 4.5 % — 0.0 % 3 3,722,619 33.9 % 2,690,027 30.8 % 4 2,382,414 21.7 % 2,689,677 30.8 % 5 4,010,757 36.5 % 3,010,103 34.5 % 6 370,627 3.4 % 339,164 3.9 % 7 — 0.0 % — 0.0 % 8 — 0.0 % — 0.0 % $ 10,975,686 100.0 % $ 8,728,971 100.0 % On2021 and June 30, 2017,2021: December 31, 2021 June 30, 2021 Level of Control Cost % of Portfolio % of Portfolio Cost % of Portfolio % of Portfolio Affiliate $ — — % $ — — % $ — — % $ — — % Non-Control/Non-Affiliate 38,328,865 100 % 37,672,621 100 % 38,086,490 100 % 37,842,310 100 % Total
Investments $ 38,328,865 100 % $ 37,672,621 100 % $ 38,086,490 100 % $ 37,842,310 100 % (1) As of December 31, 2021 and June 30, 2021, the fair value of our investments were impacted by the uncertainty surrounding the impact of the COVID-19 pandemic. Company madedecrease was primarily attributable to a decrease in net realized and net change in unrealized gains of $(113,341), or $(0.05) per weighted average share, for the decisionthree months ended December 31, 2021 and $(412,064), or $(0.17) per weighted average share, for the six months ended December 31, 2021. For three months ended December 31, 2021, the decrease was primarily offset by $0.07 per share related to fully mark down its remainingprincipal payments and the accelerated interest attributing to distributions being higher than that of our net investment income of $217,191. For the six months ended December 31, 2021, the decrease was primarily offset by $0.04 per share related to principal payments and the accelerated interest attributing to distributions being higher than that of our net investment income of $663,765. The following table shows the calculation of net asset value in Javlin Financialper share as an unrealized loss. The decision was due to performance issues within Javlin Financial’s core businessof December 31, 2021 and a breakdown in restructuring negotiations between the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown at this time if there will be any value to the investment.December 31, 2021 June 30, 2021 Net assets $ 19,409,709 $ 19,947,807 Shares of common stock issued and outstanding 2,382,101 2,386,057 Net asset value per share $ 8.15 $ 8.36 September 30, 2017December 31, 2021 and 2016,2020 we generated $227,488$759,779 and $114,659,$871,095, respectively, in investment income in the form of interest and fees earned on our debt portfolio. For the six months ended December 31, 2021 and 2020, we generated $1,755,323 and $1,719,140, respectively, in investment income in the form of interest and fees earned on our debt portfolio. Such revenues represent $220,006 ofwere primarily cash income and $7,482 in non-cash portions related to the accretion of discounts. For the six months ended December 31, 2021, investment income was higher due to an increase in the accelerated original discounts as a result of full repayments of certain loans for the quarter ended September 30, 2021.paid-in-kind2020, PIK interest included in interest income totaled $193 and $7,648, respectively. For the six months ended December 31, 2021 and 2020 PIK interest included in interest income totaled $385 and $15,155, respectively. For the three months and six months ended December 31, 2021, PIK interest included in interest income was lower because a PIK investment was fully repaid.September 30, 2017. We expect the dollar amount of interest that we earn to continue to increase as the size of our investment portfolio increases.For the nine months ended September 30, 2017December 31, 2021 and 2016, we generated $596,666 and $292,873, respectively, in investment income in the form of interest and fees earned on our debt portfolio. Such revenues represent $553,262 of cash income and $43,404 in non-cash portions related to the accretion of discounts and paid-in-kind interest for the nine months ended September 30, 2017.Operating Expensesreimbursement from the sponsorexpense limitation support totaled $1,458,755 and management fee waiver totaled $283,890 and $212,838$2,074,554 for the threesix months ended September 30, 2017December 31, 2021 and 2016, respectively,2020, respectively. These operating expenses consisted primarily of interest and consistedcredit facility expense, amortization of offering costs, base management fees, adviseradministrator costs, legal expense, and administrator reimbursements, professional fees, insurance expense, directors’ feesaudit and other general and administrative fees. tax expense.quartersthree months ended December 31, 2021 and 2020, respectively, were $83,459$184,999 and $60,625, respectively, and the incentive$184,345. The base management fees for the quarterssix months ended December 31, 2021 and 2020, respectively, were $0$367,197 and $11,265, respectively. $367,731.Expense Reimbursement Agreementexpense limitation support payment (discussed below), the sponsor reimbursed the Company $0$(184,999) and $201,573$0 for the three months ended September 30, 2017December 31, 2021 and 2016.34Total operating expenses before reimbursement from the sponsor2020, respectively, and management fee waiver totaled $754,626$(367,197) and $598,110$(183,386) for the ninesix months ended September 30, 2017December 31, 2021 and 2016, respectively,2020, respectively.consisted of base management fees, adviser and administrator reimbursements, professional fees, insurance expense, directors’ fees and other general and administrative fees. The base management fees for the periods were $246,154 and $156,957, respectively, and the incentive fees for the quarters were ($334) and $31,609, respectively. Pursuant to the Expense Reimbursement Agreement (discussed below), the sponsor reimbursed the Company $80,847 and $566,501 for the nine months ended September 30, 2017 and 2016.Our other general and administrative expenses totaled $13,095 and $9,272$(203,503) for the three months ended September 30, 2017December 31, 2021 and 2016, respectively, and $23,168 and $15,189 for the nine months ended September 30, 2017 and 2016, respectively, and consisted of the following: Three months ended September 30, 2017 Three months ended September 30, 2016 Nine months ended September 30, 2017 Nine months ended September 30, 2016 Licenses and permits $ — $ — $ 413 $ — Outside Services 9,753 — 9,753 — Printing fees 2,408 1,950 8,560 6,137 Travel expenses — 6,150 1,056 6,150 Other 934 1,172 3,386 2,902 Total $ 13,095 $ 9,272 $ 23,168 $ 15,189 Net Investment Income($56,402) (($0.04) per share based on weighted average shares outstanding)$663,765 and $(172,028) for the six months ended December 31, 2021 and 2020, respectively. The net investment income for the three months ended September 30, 2017 and $103,394 ($0.12 per share based on weighted average shares outstanding) for the threesix months ended September 30, 2016.Our net investment income totaled ($77,113) (($0.07) per share based on weighted average shares outstanding) for the nine months ended September 30, 2017December 31, 2021 were higher due to a decrease in amortization of offering costs, administrator costs and $261,264 ($0.36 per share based on weighted average shares outstanding) for the nine months ended September 30, 2016.and nine months ended September 30, 2017,December 31, 2021 and 2020, respectively, we soldreceived proceeds from sales and repayments on unaffiliated investments of $4,597,426 and $414,073, from which we did not recognize any realized gains (losses). For the six months ended December 31, 2021 and 2020, respectively, we received principal paymentsproceeds from sales and repayments on unaffiliated investments of $1,313,279$10,114,598 and $3,926,031,$1,105,458, from which we realized a net gain of $31,093 and $95,657, respectively. For the three and nine months ended September 30, 2016, we sold investments and received principal payments of $70,595 and $220,384, from which we realized a net lossgains (losses) of $0 and $1,167, respectively.Appreciation/DepreciationGains/Losses on Investmentsappreciationgains (losses) on investments reflects the net change in the fair value of our investment portfolio. For the three and nine months ended September 30, 2017,December 31, 2021 and 2020, respectively, net changeschange in unrealized appreciation were ($131,397)gains (losses) totaled $(113,341) and ($1,450,025),$1,215,336. For the six months ended December 31, 2021 and 2020, respectively, net change in unrealized gains (losses) totaled $(412,064) and $1,679,919, respectively. For the three months and ninesix months ended September 30, 2016, net changes in unrealized appreciation were $56,324December 31, 2021, the fair value of our investments was negatively impacted by uncertainty surrounding the impact of the COVID-19 pandemic and $158,046, respectively.On June 30, 2017, The Company made the decision to fully mark down its remaining investment value in Javlin Financial as an unrealized loss. The decision was due to performance issues within Javlin Financial’s core businesseffect on market yields and a breakdown in restructuring negotiations between the Company, its lenders, and Javlin Financial’s controlling shareholder. It is unknown at this time if there will be any value to the investment.Changes in Net Assets from Operationsninesix months ended September 30, 2017, we recorded a net incomeDecember 31, 2020, the fair value of ($161,230) and ($1,436,004), respectively versus net incomeour investments was positively impacted by the rebound of $159,718 and $418,144, respectively, forU.S loan prices since the three and nine months ended September 30, 2016.35Based on 1,266,225 and 1,143,880 weighted average common shares outstanding for the three and nine months ended September 30, 2017, basic and diluted, our per share net increase in net assets resulting from operations was ($0.13) and ($1.26).Based on 827,457 and 731,866 weighted average common shares outstanding for the three and nine months ended September 30, 2016, basic and diluted, our per share net increase in net assets resulting from operations was $0.19 and $0.57.offering,common stock, and from cash flows from fees (such as management fees), interest and dividends earned from our investments and principal repayments and proceeds from sales of our investments. Our primary use of funds is investments in companies, and payments of our expenses and distributions to holders of our common stock.The offeringrepresentson a continuous offering of our shares. The initial offering of our common stock commenced on September 4, 2012 and terminated on March 1, 2016. On March 17, 2016, we commenced the follow-on offering of our common stock, which follow-on offering is currently ongoing. We intend to file post-effective amendments to our registration statement to allow us to continue our offering for three years. Our most recent post-effective amendment was filed with the SEC on May 2, 2017 and declared effective on May 3, 2017."best efforts" basis. The Dealer Manager iswas not required to sell any specific number or dollar amount of shares but willwould use its best efforts to sell the shares offered. The minimum investment in shares of our common stock isin the offering was $5,000.The current Effective February 19, 2021, the offering price forwas terminated and, as a result, the dealer manager agreement terminated in accordance with its terms and the Dealer Manager ceased serving as our shares is $13.46 per share; however,dealer manager effective as of such date. We are engaged in discussions with and due diligence of other firms to potentially serve in the future capacity as our dealer manager regarding potential future capital raises by us.any class of our common stock at a price per share which, after deducting upfront selling commissions, if any, is below the then-current net asset value per share of the applicable class. Promptly following any such adjustment to the offering price per share and to the extent we are conducting a public offering, we will file a prospectus supplement with the SEC disclosing the adjusted offering price, and we appropriately publish the updated information. The Dealer Manager for this offering is an affiliate of our Adviser.During the nine months ended September 30, 2017, we sold 362,028.61 shares of our common stock for gross proceeds of $5,320,227 at an average price per share of $14.70. The increase in capital in excess of par during the nine months ended September 30, 2017 include reinvested stockholder distributions of $214,336 for which we issued 16,105.02 shares of common stock. The sales commissions and dealer manager fees related to the sale of our common stock were $502,640 for the nine months ended September 30, 2017. These sales commissions and fees include $97,435 retained by the dealer manager, Triton Pacific Securities, LLC, which is an affiliate of ours.Our offering expenses are capitalized as deferred offering expenses and then subsequently expensed over a 12-month period.Contractual ObligationsWecontractsof the securities that would otherwise be owned by the Company to be used as the borrowing base and collateral under which wethe Credit Facility. Income paid on these investments is distributed to the Company pursuant to a waterfall after taxes, fees, expenses, and debt service. The lenders under the Credit Facility have material future commitments. On July 27, 2012, we entered intoa security interest in the investment advisory agreement with Triton Pacific Adviser, LLC in accordanceinvestments held by the SPV. Although these investments are owned by the SPV, because the SPV is a wholly-owned subsidiary of the Company, the Company is subject to all of the benefits and risks associated with the 1940 Act. Credit Facility and the investments held by the SPV.investment advisory agreement became effectiveCredit Facility matures on JuneMay 21, 2029 and interest on borrowings under the Credit Facility when established was three-month LIBOR plus 1.55%. On May 11, 2020, the Company agreed to the increased interest rate of three-month LIBOR plus 2.20% on the Credit Facility for the period between May 16, 2020 to November 15, 2020. Effective November 10, 2020, the end date of the ramp period of the Credit Facility was extended from November 15, 2020 to May 14, 2021. As a result, the interest rate on borrowings under the Credit Facility of the three-month LIBOR plus 2.20% was extended from the period between May 16, 2020 to November 15, 2020 to the period between May 16, 2020 to May 14, 2021. On May 11, 2021, the end date of the ramp period of the Credit Facility was further extended from May 14, 2021 to November 15, 2021. Effective August 26, 2021, the end date of the ramp period of the Credit Facility was further extended from November 15, 2021 to August 25, 2014,2022. The Credit Facility is secured by substantially all of the SPV’s properties and assets. Under the Loan Agreement, the SPV has made certain customary representations and warranties and is required to comply with various covenants, including reporting requirements and other customary requirements for similar credit facilities. The Loan Agreement includes usual and customary events of default for credit facilities of this nature. As of December 31, 2021, we were in compliance with the applicable covenants.thatthe accompanying consolidated financial statements were available to be issued on February 8, 2022 and notes the following: metmade a tender offer to purchase up to the minimum offering requirement. Triton Pacific Adviser servesnumber of shares of our issued and outstanding Class A common stock we could repurchase with the proceeds we receive from the issuance of shares under our distribution reinvestment plan prior to the expiration of this tender offer. The total proceeds under the distribution reinvestment plan prior to this tender offer was $190,747. The tender offer was for cash at a price equal to the net asset value per share as our investment advisor inof January 24, 2022. The offer expired at 4:00 P.M., Eastern Time, on January 20, 2022 and a total of 201,626 shares were validly tendered and not withdrawn pursuant to the offer. In accordance with the terms of our investment advisory agreement. Payments under our investment advisory agreement in each reporting period will consist of (i)the offer, the Company purchased 23,462 shares validly tendered and not withdrawn at a management feeprice equal to $8.13 per share for an aggregate purchase price of approximately $190,747.percentagetargeted annualized distribution rate of 7.0% based on the current net asset value. The distributions have weekly record dates as of the valueclose of our gross assetsbusiness of each week in December 2021, January 2022 and (ii)February 2022 and equal a capital gains incentive feeweekly amount of $0.01109 per share of common stock. The distributions will be payable monthly to stockholders of record as of the weekly record dates set forth below.Record Date Payment Date FLEX Class A Common Shares, per share January 7, 14, 21, and 28, 2022 February 4, 2022 0.04436 February 4, 11, 18, and 25, 2022 March 4, 2022 0.04436 our performance.36On July 27, 2012, we entered into the administration agreement with TFA Associates, LLC pursuant to which TFA Associates furnishes us with administrative services necessary to conduct our day-to-day operations. TFA Associates is reimbursed for administrative expenses it incurs on our behalf in performing its obligations. Such costs are reasonably allocated to us on the basis of assets, revenues, time records or other reasonable methods. We do not reimburse TFA Associates for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a controlling person of TFA Associates. At the time of our offering, our Administrator has contracted with Bank of New York Mellon and affiliated entities to provide additional administrative services, while we have directly engaged Bank of New York Mellon and affiliated entities to act as our custodian. We have also contracted with Phoenix American Financial Services to act as our transfer agent, plan administrator, distribution paying agent and registrar.If any of our contractual obligations discussed above are terminated, our costs may increase under any new agreements that we enter into as replacements. We would also likely incur expenses in locating alternative parties to provide the services we expect to receive under the investment advisory agreement and administration agreement. Any new investment advisory agreement would also be subject to approval by our stockholders.Off-Balance Sheet ArrangementsOther than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any off-balance sheet financings or liabilities.Record Date Payment Date FLEX Class A Common Shares, per share March 25, 2022 April 1, 2022 0.04376 April 29, 2022 May 6, 2022 0.05470 May 27, 2022 June 3, 2022 0.04376 obtain and maintain RIC tax treatment, we must, among other things, distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any, to our stockholders. In order to avoid certain excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum of: (i) 98% of our ordinary income for the calendar year, (ii) 98.2% of our recognized capital gains in excess of recognized capital losses for the one-year period generally ending on October 31 of the calendar year (unless an election is made by us to use our taxable year) and (iii) any ordinary income and netor capital gains for preceding years that wererecognized but not distributed during suchin preceding years and on which we paid no federal income tax.2015.2015 (in our capacity as TPIC). The amount of each such distributionsdistribution is subject to our board of directors’ discretion and applicable legal restrictions related to the payment of distributions. We calculate each stockholder’s specific distribution amount for the month using record and declaration dates, and distributions will begin to accrue on the date we accept subscriptions for shares of our common stock. From time to time, we may also pay interim distributions at the discretion of our board.board of directors. Each year a statement on Internal Revenue Service Form 1099-DIV (or any successor form) identifying the source of the distribution (i.e.,(i) paid from investment company taxable income, which is generally our net ordinary income plus our realized net short-term capital gains in excess of realized net long-term capital gains, (ii) paid from net capital gain on the sale of securities, which is our realized net long-term capital gains in excess of realized net-short term capital losses, and/or (iii) a return of paid-in capital surplus, which is generally a nontaxable distribution) will be mailed to our stockholders. Our distributions may exceed our earnings, especially during the period before we have substantially invested the proceeds from our offering. As a result, a portion of the distributions we make may represent a return of capital for tax purposes.37(1)During the nine months ended September 30, 2017 and 2016, 92.7% and 86.3%, respectively, of the Company’s gross investment income was attributable to cash income earned, and 7.3% and 13.7%, resepctively was attributable to non-cash accretion of discount and paid in-kind interest.Related Party Transactionsinvestmentincentive fee. Under the Amended and Restated Advisory Agreement, we reduced the base management fee from an annual rate of 1.75% to 1.20% and eliminated the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. Until such January 1, 2022 effective date, the advisory agreement with Triton Pacificfees payable to the Adviser were as set forth in whichthe Investment Advisory Agreement. The cost of any advisory fees payable to the Adviser will ultimately be borne by our stockholders. See “-Investment Advisory Fees.”holdshold an equity interest.interest in our Adviser. Members of our senior management also serve as principals of other investment managers affiliated with Triton Pacificour Adviser that do and may in the future manage investment funds, accounts or other investment vehicles with investment objectives similar to ours.We have entered intoadministrationaffiliate of the Adviser, became the administrator for the Company pursuant to an administrative agreement, with TFA Associatesas amended and restated as of June 17, 2019 (the "Administration Agreement"). The Administrator performs, oversees and arranges for the performance of administrative services necessary for the operation of the Company. These services include, but are not limited to, accounting, finance and legal services. For providing these services, facilities and personnel, the Company reimburses the Administrator for the Company’s actual and allocable portion of expenses and overhead incurred by the Administrator in performing its obligations under the Administration Agreement, including rent and the Company’s allocable portion of the costs of its Chief Financial Officer and Chief Compliance Officer and her staff. For the three months ended December 31, 2021 and 2020, allocation of overhead from the Administrator to the Company was $153,885 and $249,280, respectively. For the six months ended December 31, 2021 and 2020, allocation of overhead from the Administrator to the Company was $323,082 andour senior management holds equity interestthen allocates to the Company its proportional share of such expense. During the three months ended December 31, 2021 and act2020, PRIS incurred $13,400 and $13,138, respectively, in expenses related to valuation services that are attributable to the Company. During the six months ended December 31, 2021 and 2020, PRIS incurred $27,417 and $26,277, respectively, in expenses related to valuation services that are attributable to the Company. The Company reimburses PRIS for these expenses and includes them as principals.We havepart of Valuation services on the Triton Pacific Securities, LLC andthe Dealer Manager, which terminated effective February 19, 2021 in accordance with its terms in connection with the termination of the Company's continuous public offering of its common stock. The Dealer Manager ceased serving as the Company's dealer manager effective as of such date. Pursuant to the terms of this dealer manager agreement, the Company would pay themthe Dealer Manager a fee of up to 10%9% of gross proceeds raised in the Company's offering, some of which willwould be re-allowed to other participating broker-dealers. Triton Pacific Securities, LLCIn addition to the upfront selling commissions and dealer manager fees, PFIM could pay the Dealer Manager a fee (the "Additional Selling Commissions") equal to no more than 1.0% of the net asset value per share per year. The Dealer Manager would reallow all or a portion of the Additional Selling Commissions to participating broker-dealers. The Dealer Manager is an affiliated entity of Triton Pacific Adviser.We have entered into a license agreement with Triton Pacific Group, Inc. under which Triton Pacific Group, Inc. has granted us a non-exclusive, royalty-free license to use the name “Triton Pacific” for specified purposes in our business. Under this agreement, we have the right to use the “Triton Pacific” name, subject to certain conditions, for so long as Triton PacificTPIC Adviser orand is partially owned by one of its affiliates remains our investment advisor. Other than with respectformer directors, Craig Faggen.this limited license, we have no legal rightoffering costs and general and administrative expenses which is included in Due to Affiliate on the “Triton Pacific” name.We havesupportlimitation agreement, dated March 31, 2019 (the "Former ELA"), with PFIM, which was terminated effective February 17, 2021 in accordance with its terms. On and conditional reimbursementeffective April 20, 2021, the Company entered into a new expense limitation agreement with Triton Pacificthe Adviser, pursuantwhich was amended and restated on July 7, 2021 to extend the period during which the Adviser will pay upbe required to 100%waive its investment advisory fees under the Investment Advisory Agreement, from September 30, 2021 to June 30, 2022, as discussed below (such new expenses limitation agreement as amended and restated, the "New ELA"). Pursuant to the terms of each expense limitation agreement the applicable investment adviser, in its sole discretion, could waive a portion or all of the Company’s organization, offering andinvestment advisory fees that it was entitled to receive under its investment advisory agreement with the Company in order to limit the Company's operating expenses subject to repayment by usan annual rate, expressed as a percentage of the Company's average quarterly net assets, equal to 8.00%. In addition, under the Adviser, in order forNew ELA, the Company to achieve a reasonable level of expenses relative to its investment income, as determined by the Company and the Adviser. our Adviser has agreed to make advanceswaive its investment advisory fees to usthe extent necessary to cover certainlimit the Company's operating expenses to such annualour operating expenses. (Seethe New ELA through June 30, 2022. The Former ELA did not contain this guaranteed waiver. Other than this guaranteed waiver, the terms and conditions of the New ELA are substantially similar to those of the Former ELA. See “Expense ReimbursementLimitation Agreement”, below.)Management Feeagreement,which terminated effective April 20, 2021. The Investment Advisory Agreement is identical in all material respects to the Former Investment Advisory Agreement, except for its date of effectiveness, term and the Adviser serving as the Company’s investment adviser instead of PFIM. As such, the Former Investment Advisory Agreement and the Investment Advisory Agreement contain the same terms, provisions, conditions and fee rates, and provide for the same management services to be conducted by the Adviser as were conducted by PFIM.payamended and restated the Investment Advisory Agreement to reduce to reduce the advisory fees payable thereunder, effective as of January 1, 2022 and until the one year anniversary of the listing of our common stock on a national securities exchange (the “Listing Anniversary”), as further discussed below. The Amended and Restated Advisory Agreement was unanimously approved by our Board of Directors, including by all of the directors who are not “interested persons” (as defined in the 1940 Act), and became effective on January 1, 2022. Until such effective date, the advisory fees payable to the Adviser were as set forth in the Investment Advisory Agreement. The Amended and Restated Advisory Agreement has an initial two-year term and may be continued thereafter for successive one-year periods if such continuance is approved in the manner provided for under Section 15 of the 1940 Act.iswas calculated at a quarterlyan annual rate of 0.5%1.75% (0.4375% quarterly) of our average grosstotal assets, (including amounts borrowedwhich included any borrowings for investment purposes) and payable quarterly in arrears.purposes. For the first quarter of our operations following the Merger, the base management fee was calculated based on the initial value of our gross assets. Subsequently, the base management fee for any calendar quarter is calculated based on the average value of our grosstotal assets as of the date of the Former Investment Advisory Agreement and at the end of thatthe calendar quarter in which the date of the Former Investment Advisory Agreement fell, and the immediately preceding quarters,was appropriately adjusted for any share issuances or repurchases during thatthe then current calendar quarter. The base management fee may or may not be taken in whole or in part at the discretion of our Adviser. All or any part ofSubsequently, the base management fee not taken as towas payable quarterly in arrears, and was calculated based on the average value of our total assets at the end of the two most recently completed calendar quarters, and was appropriately adjusted for any share issuances or repurchases during the then current calendar quarter. Base management fees for any partial month or quarter shall be accrued without interest and may be taken in such other quarter as our Adviser shall determine. Thewas appropriately pro-rated. At PFIM’s option, the base management fee for any partial quarter willperiod could be appropriately pro-rated.39Though, in accordance with$183,386 related to the Advisers Act,three months ended September 30, 2020 were waived by PFIM. As of June 30, 2021, the Adviser could have received antotal base management fee due to PFIM was $44,223. As of December 31, 2021, the total base management fee due to PFIM was $0.both current income earned and income from(2) the capital gains the Adviser has agreed to waive any incentive fees from current income. As such,fee. Adviser will be paid an incentive fee, only uponwhich is referred to as the realization of a capital gain from the sale of an investment. Thesubordinated incentive fee will beon income, was calculated and payable quarterly in arrears based upon our “pre-incentive fee net investment income” for the immediately preceding calendar quarter. For purposes of this fee, “pre-incentive fee net investment income” meant interest income, dividend income and distribution cash flows from equity investments and any other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees that we received) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, expenses reimbursed under the Former Investment Advisory Agreement and the Administration Agreement, any interest expense and dividends paid on any issued and outstanding preferred shares, but excluding the organization and offering expenses and incentive fees on income and capital gains). Pre-incentive fee net investment income included, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we had not yet received in cash. Pre-incentive fee net investment income did not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. The subordinated incentive fee on income was subject to a quarterly fixed preferred return to investors, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, of 1.5% (6.0% annualized), subject to a “catch up” feature. Operating expenses were included in the calculation of the subordinated incentive fee on income.dateend of our liquidation or theeach calendar year (or upon termination of the investment adviser agreement,Former Investment Advisorywill equal 20%equaled 20.00% of our realized capital gains on a cumulative basis from inception throughfor the end of each quarter,calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, lessat the aggregate amountend of any previously paid capital gain incentive fees.For purposes of the foregoing: (1) the calculation of the incentive fee shall include any capital gains that result from cash distributions that are treated as a return of capital, (2) any such return of capital will be treated as a decrease in our cost basis for the relevant investment and (3) all fiscal year-end valuations will be determined by us in accordance with GAAP, applicable provisions of the Company Act and our pricing procedures.year. In determining the capital gains incentive fee payable to our Adviser,PFIM, we willwould calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each of the investmentsinvestment that has been in our portfolio. For the purpose of this purpose, aggregatecalculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equaled the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed.positive differences between the aggregate net sales pricesprice of our investments,each investment and the aggregate amortized cost basis of such investment when sold and the cost of such investments since inception.or otherwise disposed. Aggregate realized capital losses will equal the sum of the amounts by which the aggregate net sales pricesprice of our investments, when sold,each investment is less than the originalaggregate amortized cost basis of such investments since inception.investment when sold or otherwise disposed. Aggregate unrealized capital depreciation will equalequals the sum of the difference,differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis of such investment as of the applicable date and the original cost of such investment.calendar year-end. At the end of the applicable period,calendar year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee will equal theinvolves netting aggregate realized capital gains lessagainst aggregate realized capital losses on a since-inception basis and lessthen reducing this amount by the aggregate unrealized capital depreciation with respect to our portfolio investments.depreciation. If this number is positive, at the end of such period, then the capital gains incentive fee for such period will bepayable is equal to 20%20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid in all prior periods.Whilesince inception. Operating expenses are not taken into account when determining capital gains incentive fees.investment advisory agreement neither includes nor contemplatesthree months and six months ended December 31, 2021 and 2020, there were no incentive fees incurred.inclusionInvestment Advisory Agreement to reduce the base management fee from an annual rate of unrealized gains in1.75% (0.4375% quarterly) to 1.20% (0.30% quarterly) and eliminate the incentive fee payable thereunder, effective as of January 1, 2022 and until the Listing Anniversary. As such, until the Listing Anniversary, the base management fee will be calculated at an annual rate of 1.20% (0.30% quarterly) and the Adviser will not be entitled to any incentive fee. Following the Listing Anniversary (1) the base management fee will be calculated at an annual rate of 1.75% (0.4375% quarterly), commencing with the first base management fee calculation ofthat occurs after such anniversary, and (2) the Adviser will be entitled to receive the same incentive fee, including the subordinated incentive fee on income and the capital gains incentive fee, pursuantas set forth in the Investment Advisory Agreement and discussed above, commencing with the first calendar quarter after such anniversary. The Amended and Restated Advisory Agreement became effective on January 1, 2022. Untilinterpretationamendment to Section 61(a) of an American Institutethe 1940 Act was signed into law to permit BDCs to reduce the minimum “asset coverage” ratio from 200% to 150%, so long as certain approval and disclosure requirements are satisfied. In addition, for BDCs like the Company whose securities are not listed on a national securities exchange, the Company is also required to offer to repurchase its outstanding shares at the rate of Certified Public Accountants, or AICPA, Technical Practice Aid25% per quarter over four calendar quarters. Under the existing 200% minimum asset coverage ratio, the Company is permitted to borrow up to one dollar for investment companies, we include unrealized gains inpurposes for every one dollar of investor equity, and under the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to our Advisor as if our entire portfolio was liquidated at its fair value as of the balance sheet date even though our Adviser is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.The organizational and offering expense and other expense reimbursements may include a portion of costs incurred by our Adviser or its members or affiliates on our behalf for legal, accounting, printing and other offering expenses, including for marketing, salaries and direct expenses of its employees, employees of its affiliates and others while engaged in registering and marketing the shares of our common stock, which shall include development of marketing and marketing presentations and training and educational meetings and generally coordinating the marketing process for us and may also include amounts reimbursed by us to our Dealer Manager for actual bona fide due diligence expenses incurred by our Dealer Manager or participating broker-dealers in an aggregate amount that is reasonable in relation to the gross proceeds raised in our offering and which are supported by detailed, itemized invoices. None of the reimbursements referred to above will exceed actual expenses incurred by our Adviser, its members or affiliates. Our Adviser will reimburse to us, without recourse or reimbursement by us, any organizational and offering expenses to the extent those expenses, when aggregated with sales load, exceed 15.0%.40Expense Reimbursement AgreementOn March 27, 2014, we and our Adviser agreed to an Expense Support and Conditional Reimbursement Agreement, or the Expense Reimbursement Agreement. The Expense Reimbursement Agreement was amended and restated effective November 17, 2014. Under the Expense Reimbursement Agreement, as amended, our Adviser, in consultation with150% minimum asset coverage ratio, the Company will paybe permitted to borrow up to 100% of both our organizational and offering expenses and our operating expenses, all as determined by us and our Adviser. As used in the Expense Reimbursement Agreement, operating expenses refer to third party operating costs and expenses incurred by us, as determined under generally accepted accounting principlestwo dollars for investment management companies. Organizationalpurposes for every one dollar of investor equity. In other words, Section 61(a) of the 1940 Act, as amended, permits BDCs to potentially increase their debt-to-equity ratio from a maximum of 1 to 1 to a maximum of 2 to 1.offering expenses include expenses incurredsubject to certain additional disclosure requirements and the repurchase obligations described above, the minimum asset coverage ratio applicable to the Company was reduced from 200% to 150%, effective as of March 16, 2019.Revolving Credit Facility Total Amount Outstanding Asset Coverage per Unit(1) Involuntary Liquidating Preference per Unit(2) Average Market Value per Unit(2) December 31, 2021 $ 21,000,000 $ 1,924 — — September 30, 2021 $ 21,000,000 $ 1,938 — — June 30, 2021 $ 21,000,000 $ 1,950 — — March 31, 2021 $ 21,000,000 $ 1,971 — — December 31, 2020 $ 21,000,000 $ 1,976 — — September 30, 2020 $ 21,000,000 $ 1,947 — — June 30, 2020 $ 21,000,000 $ 1,931 — — March 31, 2020 $ 21,000,000 $ 1,914 — — December 31, 2019 $ 21,000,000 $ 2,018 — — September 30, 2019 $ 15,500,000 $ 2,461 — — June 30, 2019 $ 5,500,000 $ 5,256 — — (1) The asset coverage ratio is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit. (2) This column is inapplicable. organization of our company and expenses incurred in connection with our offering, which are recorded as a component of equity. The Expense Reimbursement Agreement states that until the net proceeds to us from our offering are at least $25 million, our Adviser will pay up to 100% of both our organizational and offering expenses and our operating expenses. After we received at least $25 million in net proceeds from our offering, our Adviser may, with our consent, continue to make expense support payments to us in such amounts as are acceptable to us and our Adviser. Any expense support payments shall be paid by the Adviser to the Company in any combination of cash, and/or offsets against amounts otherwise due from the Company to the Adviser.Under the Expense Reimbursement Agreement as amended, once we have received at least $25 million in net proceeds from our offering,we are required to reimburse our Adviser for any expense support payments we received from themoccurring within three yearsoutbreak of the date on which we incurred such expenses.However, with respect to any expense support payments attributable to our operating expenses, (i) we will only reimburse our Adviser for expense support payments made by our Adviser toCOVID-19 pandemic, the extent that the payment of such reimbursement (together with any other reimbursement paid during such fiscal year) does not cause “other operating expenses” (as defined below) (onSEC issued an annualized basisOrder Under Sections 6(c), 17(d), 38(a) and net of any expense reimbursement payments received by us during such fiscal year) to exceed the percentage of our average net assets attributable to shares of our common stock represented by “other operating expenses” during the fiscal year in which such expense support payment from our Adviser was made (provided, however, that this clause (i) shall not apply to any reimbursement payment which relates to an expense support payment from our Adviser made during the same fiscal year); and (ii) we will not reimburse our Adviser for expense support payments made by our Adviser if the annualized rate of regular cash distributions declared by us at the time of such reimbursement payment is less than the annualized rate of regular cash distributions declared by us at the time our Adviser made the expense support payment to which such reimbursement relates. “Other operating expenses” means our total operating expenses excluding base management fees, incentive fees, organization and offering expenses, financing fees and costs, interest expense, brokerage commissions and extraordinary expenses.In addition, with respectto any expense support payment attributable to our organizational and offering expenses,we will only reimburse our Adviser for expense support payments made by our Adviser to the extent that the payment of such reimbursement (together with any other reimbursement for organizational and offering expenses paid during such fiscal year) is limited to 15% of cumulative gross sales proceeds including the sales load (or dealer manager fee) paid by us.Under the Expense Reimbursement Agreement, any unreimbursed expense support payments may be reimbursed by us within a period not to exceed three years from the end of the quarter in which we incurred the expense.We or our Adviser may terminate the expense reimbursement agreement at any time upon thirty days’ written notice. The expense reimbursement agreement will automatically terminate upon termination57(i) of the Investment Advisory AgreementCompany Act of 1940 and Rule 17d-1 Thereunder Granting Exemptions from Specified Provisions of the Investment Company Act and Certain Rules Thereunder, the 1940 Act Release No. 33837 (Apr. 8, 2020) (the “April 2020 Order”), which provides exemptions from certain requirements of the 1940 Act. Section II of the April 2020 Order (i) affords BDCs greater flexibility in calculating asset coverage ratios for purposes of the 1940 Act asset coverage requirements, (ii) requires a BDC’s board of directors, including a required majority of such board, as defined in Section 57(o) of the 1940 Act, to determine that the issuance or upon our liquidation or dissolution.Expense Reimbursement Agreement is,Company has not taken advantage of the relief provided by its terms, effective retroactivelythe April 2020 Order.inception date of April 29, 2011. As a result, our Adviser has agreed to reimburse a total of $5,292,191 as of September 30, 2017.41Below is a table that provides information regarding expense support payments incurred by our Adviser pursuant to the Expense Support Agreement as well as other information relating to our ability to reimburse our AdviserAnnual Report on Form 10-K for such payments. Operating Expense Ratio as of the Annualized Distribution Date Expense Rate as of the Date Eligible for Amount of Expense Amount of Offering Cost Payment Obligation Expense Payment Reimbursement Quarter Ended Payment Obligation Payment Obligation Incurred( 1) Obligation Incurred( 2) Through September 30, 2012 $21,826 432.69% — September 30, 2015 December 31, 2012 $26,111 531.09% — December 31, 2015 March 31, 2013 $30,819 N/A — March 31, 2016 June 30, 2013 $59,062 N/A — June 30, 2016 September 30, 2013 $65,161 N/A — September 30, 2016 December 31, 2013 $91,378 455.09% — December 31, 2016 March 31, 2014 $68,293 148.96% — March 31, 2017 June 30, 2014 $70,027 $898,518 23.17% — June 30, 2017 September 30, 2014 $92,143 $71,060 20.39% — September 30, 2017 December 31, 2014 $115,777 $90,860 11.15% — December 31, 2017 March 31, 2015 $134,301 $106,217 13.75% 2.01% March 31, 2018 June 30, 2015 $166,549 $167,113 14.10% 3.20% June 30, 2018 September 30, 2015 $147,747 $240,848 10.45% 3.20% September 30, 2018 December 31, 2015 $136,401 $280,376 7.41% 3.60% December 31, 2018 March 31, 2016 $157,996 $232,895 6.00% 3.52% March 31, 2019 June 30, 2016 $206,933 $285,878 4.95% 3.52% June 30, 2019 September 30, 2016 $201,573 $223,020 4.52% 3.13% September 30, 2019 December 31, 2016 $104,561 $168,876 4.45% 3.11% December 31, 2019 March 31, 2017 $80,847 $252,875 4.21% 3.19% March 31, 2020 June 30, 2017 $0 $176,963 3.98% 3.18% June 30, 2020 September 30, 2017 $0 $119,188 4.19% 3.00% September 30, 2020 (1)“Operating Expense Ratio” includes all expenses borne by us, except for organizational and offering expenses, base management and incentive fees owed to our Adviser,financing fees and costs, interest expense, brokerage commissions and extraordinary expenses. The Company did not achieve its minimum offering amount until June 25, 2014 and as a result, did not invest the proceeds from the offering and realize any income from investments prior to the end of its fiscal quarter.(2)“Annualized Distribution Rate” equals the annualized rate of distributions paid to stockholders based on the amount of the regular cash distribution paid immediately prior to the date the expense support payment obligation was incurred by our Adviser. “Annualized Distribution Rate” does not include special cash or stock distributions paid to stockholders. The Company did not achieve its minimum offering amount until June 25, 2014 and as a result, did not have an opportunity to invest the proceeds from the offering and realize any income from investments or pay any distributions to stockholders prior to the end of its fiscal quarter.Beginning the year ended December 31, 2016, the Adviser began to reimburse less than 100% of Operating Expenses, and for the quarter ended SeptemberJune 30, 2017, the Adviser did not reimburse any Operating Expenses. Of these Offering and Operating Expenses, $1,494,398 has exceeded the three-year period for repayment and will not be repayable by the Company.The chart below, on a cumulative basis, discloses the components of the Reimbursement due from Sponsor reflected on the chart above: September 30, December 31, 2017 2016 Operating Expenses $ 1,977,504 $ 1,896,657 Offering Costs 3,314,687 2,765,662 Due to related party offset (4,619,337 ) (4,213,469 ) Reimbursements received from Adviser (342,715 ) (342,715 ) Other amounts due to affiliates 448 448 Total Reimbursement due from Adviser $ 330,587 $ 106,583 42Operating Expenses are the amounts reimbursed by the Adviser for our operating costs and Offering Costs are the cumulative amount of organizational and offering expenses reimbursed to us by the Adviser and subject to future reimbursement per the terms of our expense reimbursement agreement. Due to related party offset represents the cash the Adviser paid directly for our operating and offering expenses and Reimbursements received from sponsor are the amounts the Adviser paid in cash to us for reimbursement of our operating and offering costs.Either we or our Adviser may terminate the Expense Support Agreement at any time, except that if our Adviser terminates the agreement, it may not terminate its obligations to provide expense support payments after the commencement of any monthly period. If we terminate the Investment Advisory Agreement, we will be required to repay our Adviser all expense support payments made by our Adviser within three years of the date of termination.CriticalRecent Accounting PoliciesPronouncements Thisour expected operating plans is based upon our expected financial statements, which will be prepared in accordance withrecent accounting principles generally accepted inpronouncements, refer to Note 2 within the United States, or GAAP. The preparation of these financial statements will require our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. In additionaccompanying notes to the discussion below, we will describe our critical accounting policies in the notes to our futureconsolidated financial statements.Valuation of InvestmentsOur board of directors has established procedures for the valuation of our investment portfolio. These procedures are detailed below.Investments for which market quotations are readily available will be valued at such market quotations. For most of our investments, market quotations will not be available. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, our board of directors has approved a multi-step valuation process each quarter, as described below:1.Each portfolio company or investment will be valued by our Adviser, potentially with assistance from one or more independent valuation firms engaged by our board of directors;2.the independent valuation firm, if involved, will conduct independent appraisals and make an independent assessment of the value of each investment;3.the audit committee of our board of directors will review and discuss the preliminary valuation prepared by our Adviser and that of the independent valuation firm, if any; and4.the board of directors will discuss the valuations and determine the fair value of each investment in our portfolio in good faith based on the input of our Adviser, the independent valuation firm, if any, and the audit committee.Investments will be valued utilizing a cost approach, a market approach, an income approach, or a combination of approaches, as appropriate. The cost approach is most likely only to be used early in the life of an investment or if we determine that there has been no material change in the investment since purchase. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present value amount, calculated using an appropriate discount rate. The measurement is based on the net present value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the Company’s ability to make payments, its earnings and discounted cash flows, the markets in which the Company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, the principal market and enterprise values, among other factors.43We have adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly Statement of Financial Accounting Standards No. 157, Fair Value Measurements), which defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements.ASC Topic 820 provides a consistent definition of fair value which focuses on exit price and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. It defines fair value as the price an entity would receive when an asset is sold or when a liability is transferred in an orderly transaction between market participants at the measurement date. In addition, ASC Topic 820 provides a framework for measuring fair value and establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels of valuation hierarchy established by ASC Topic 820 are defined as follows:Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by the company at the measurement date.Level 2: 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 other observable inputs other than quoted prices.Level 3: Unobservable inputs for the asset or liability.In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment.In accordance with ASC Topic 820, the fair value of our investments is defined as the price that we would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment is transacted.Revenue RecognitionWe record interest income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, which represents contractual interest accrued and added to the principal balance, we generally will not accrue PIK interest for accounting purposes if the portfolio company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities for accounting purposes if we have reason to doubt our ability to collect such interest. Original issue discounts, market discounts or premiums are accreted or amortized using the effective interest method as interest income. We record prepayment premiums on loans and debt securities as interest income. Dividend income, if any, is recognized on an accrual basis to the extent that we expect to collect such amount.Net Realized Gains or Losses and Net Change in Unrealized Appreciation or DepreciationWe will measure net realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties. Net change in unrealized appreciation or depreciation will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.44Payment-in-Kind InterestWe may have investments in our portfolio that contain a PIK interest provision. Any PIK interest will be added to the principal balance of such investments and is recorded as income, if the portfolio company valuation indicates that such PIK interest is collectible. In order to maintain our status as a RIC, substantially all of this income must be paid out to stockholders in the form of distributions, even if we have not collected any cash.Organization and Offering ExpensesWe have incurred certain expenses in connection with the registration of shares of our common stock for sale as discussed in Note 1 of our financial statements– Description of Business and Summary of Significant Accounting Policies. These costs principally relate to professional fees, fees paid to the SEC and fees paid to the Financial Industry Regulatory Authority. These costs were included in deferred offering costs in the accompanying balance sheets. Simultaneous with the sale of common shares, the deferred offering costs will be reclassified to stockholders’ equity upon the issuance of shares.Federal Income TaxesWe elected to be treated, beginning with our fiscal year ending December 31, 2012, and intend to qualify annually thereafter, as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to pay corporate-level federal income taxes on any ordinary income or capital gains that we distribute to our stockholders from our tax earnings and profits. To maintain our RIC tax treatment, we must, among other things, meet specified source-of-income and asset diversification requirements and distribute annually at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any.Item 3: Quantitative and Qualitative Disclosures About Market Risk.September 30, 2017, 95.6%December 31, 2021, 97% (based on fair value) of our investments paid variable interest rates noneand 3% paid fixed rates (considering interest rate flows for floating rate instruments, excluding our investments in equity and 4.4% were non-income producing equity.structured subordinated notes). A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to certain variable rate investments we hold and to declines in the value of any fixed rate investments we may hold in the future.effect over a twelve-month periodestimated annual impact of changes in interest rates (considering interest rate flows for floating rate instruments, excluding our investments in equity and structured subordinated notes) on our interest income, interest expense and net interest income, assuming no changes in our investment portfolio and borrowing arrangements in effect as of September 30, 2017:LIBOR Basis Point ChangePercentageChange in NetInterest IncomeDown 25 basis points-3.23%Current LIBOR0.00%Up 100 basis points17.27%Up 200 basis points30.21%Up 300 basis points43.15%45LIBOR Basis Point Change Interest Income Interest Expense Net Investment Income Up 300 basis points $ 788,873 $ 630,000 $ 158,873 Up 200 basis points $ 482,074 $ 420,000 $ 62,074 Up 100 basis points $ 175,275 $ 210,000 $ (34,725) Down 100 basis points $ (11,360) $ (43,917) $ 32,557 See “Part I - Item 2. Management’s DiscussionFor discussion of critical accounting policies, estimates and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Valuation of Portfolio Investments.”risks regarding our portfolio valuation, refer to our Annual Report on Form 10-K for the year ended June 30, 2021Item 4: Controls and Procedures.In accordance with Rules 13a-15(b) and 15d-15(b)Procedures Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervisiondesign and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectivenessoperation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange1934 Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as of the end of the period covered by this Quarterly Report on Form 10-Q and determined thatappropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures. We are effective.No change occurred(as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the three monthsquarter ended September 30, 2017December 31, 2021, that hashave materially affected, or isare reasonably likely to materially affect, our internal control over financial reporting.Item 1: Legal Proceedings.Company is not currentlyresolution of such matters as may arise will be subject to various uncertainties and, even if such claims are without merit, could result in the expenditure of significant financial and managerial resources. We are not aware of any material legal proceedings nor, to our knowledge, are any legal proceedings threatened against us or our subsidiaries.as of December 31, 2021.Item 1A: Risk Factors.There have been no material changes fromset forthin Part I, “Item 1A. Risk Factors” in our annual reportAnnual Report on Form 10-K for the fiscal year ended June 30, 2021 which could materially affect our business, financial condition or future results. The risks described in this report and in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known2016.2021. Since December 31, 2021, all sterling, euro, Swiss franc and Japanese yen LIBOR settings and the 1-week and 2-month U.S. dollar LIBOR settings have ceased to be published or are no longer be representative, and after June 30, 2023, the overnight, 1-month, 3-month, 6-month and 12-month U.S. dollar LIBOR settings will cease to be published or will no longer be representative. Various financial industry groups have begun planning for the transition away from LIBOR, but there are challenges to converting certain securities and transactions to a new reference rate (e.g., the Secured Overnight Financing Rate, which is intended to replace the U.S. dollar LIBOR). Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.None.Date of Issuance Record Date Number of Shares Purchase Price per Share August 6, 2021 July 2, 9, 16, 23, and 30, 2021 9,247 $ 8.33 September 3, 2021 August 6, 13, 20, and 27, 2021 7,320 $ 8.33 October 1, 2021 September 3, 10, 17, and 24, 2021 6,332 $ 8.33 November 5, 2021 October 1, 8, 15, 22, and 29, 2021 7,956 $ 8.24 December 3, 2021 November 5, 12, 19, and 26, 2021 6,339 $ 8.24 January 7, 2022 December 3, 10, 17, 24 and 31, 2021 7,861 $ 8.24 Item 3: Defaults Upon Senior Securities.None.Item 4: Mine Safety Disclosures.None.None.46TableContents6: Exhibits.EXHIBIT INDEX47authorized.
authorized on February 8, 2022.Dated: November 14, 2017Triton Pacific Investment Corporation, Inc.By/s/ Craig J. FaggenCraig J. FaggenChief Executive Officer(Principal Executive Officer) Dated: November 14, 2017By/s/ Michael L. CarrollMichael L. CarrollChief Financial Officer(Principal Accounting and Financial Officer)