☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 86-2872887 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
600 Madison Avenue, Suite 1800 | ||
New York, NY | ||
10022 | ||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | SSIC | The NASDAQ Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |
Emerging growth company | ☒ |
TABLE OF CONTENTS | ||
PAGE NO. | ||
PART I | FINANCIAL INFORMATION | |
Item 1 | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
PART II | OTHER INFORMATION | |
Item 1 | ||
Item 1A | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
Item 5 | ||
Item 6 | ||
37 |
June 30, 2022 | March 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||
(Unaudited) | (unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Investments at fair value: | ||||||||||||||||
Non-control/non-affiliate investments at fair value (amortized cost of $24,427,008 and $0, respectively) | $ | 24,417,500 | $ | - | ||||||||||||
Cash & cash equivalents | 60,618,447 | 84,766,060 | ||||||||||||||
Non-control/non-affiliate investments at fair value (amortized cost of $57,433,276 and $50,527,898, respectively) | $ | 57,669,044 | $ | 50,254,550 | ||||||||||||
Cash and cash equivalents | 32,895,660 | 35,125,320 | ||||||||||||||
Interest receivable | 591,368 | 1,559,081 | ||||||||||||||
Prepaid expenses | 207,249 | 256,512 | 179,657 | 32,323 | ||||||||||||
Interest receivable | 66,090 | 9,215 | ||||||||||||||
Total assets | $ | 85,309,286 | $ | 85,031,787 | $ | 91,335,729 | $ | 86,971,274 | ||||||||
LIABILITIES | ||||||||||||||||
Income-based incentive fees payable | $ | 646,494 | $ | - | ||||||||||||
Management fee payable | 257,489 | 170,965 | ||||||||||||||
Capital gains incentive fee payable | 5,000 | - | ||||||||||||||
Valuation fees payables | 93,185 | - | ||||||||||||||
Administrator fees payable | 89,978 | 57,306 | ||||||||||||||
Legal fees payable | $ | 204,251 | $ | 33,983 | 72,464 | 42,215 | ||||||||||
Audit fees payable | 102,250 | 50,000 | 51,183 | 50,000 | ||||||||||||
Administrator fees payable | 99,852 | 47,151 | ||||||||||||||
Management fee payable | 55,041 | - | ||||||||||||||
Organizational costs payable | - | 34,168 | ||||||||||||||
Director's fee payable | 35,747 | 24,370 | ||||||||||||||
Director’s fee payable | 31,747 | 32,049 | ||||||||||||||
Professional fees payable | 26,306 | 28,744 | ||||||||||||||
Due to affiliate | 912 | 85 | 2,534 | 37 | ||||||||||||
Offering cost payable | - | 264,581 | ||||||||||||||
Excise tax payable | - | 80,566 | ||||||||||||||
Other payables | 47,406 | 25,359 | 15,136 | 33,663 | ||||||||||||
Total liabilities | $ | 545,459 | $ | 479,697 | $ | 1,291,516 | $ | 495,545 | ||||||||
Commitments and contingencies (Note 6) | - | - | - | - | ||||||||||||
NET ASSETS | ||||||||||||||||
Common Stock, $0.01 par value, 100,000,000 shares authorized, 6,214,672 and 6,214,672 shares issued and outstanding as of June 30, 2022 and March 31, 2022, respectively | $ | 62,147 | $ | 62,147 | ||||||||||||
Common Stock, $0.01 par value, 100,000,000 shares authorized, 6,214,672 and 6,214,672 shares issued and outstanding, respectively | $ | 62,147 | $ | 62,147 | ||||||||||||
Additional paid-in-capital | 84,917,788 | 84,917,788 | 85,038,887 | 84,917,788 | ||||||||||||
Distributable earnings/(Accumulated losses) | (216,108 | ) | (427,845 | ) | 4,943,179 | 1,495,794 | ||||||||||
Total net assets | $ | 84,763,827 | $ | 84,552,090 | $ | 90,044,213 | $ | 86,475,729 | ||||||||
Total liabilities and net assets | $ | 85,309,286 | 85,031,787 | |||||||||||||
NET ASSET VALUE PER SHARE | $ | 13.64 | $ | 13.61 | $ | 14.49 | $ | 13.91 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
INVESTMENT INCOME | ||||||||||||||||
Non-control/non-affiliate investment income | ||||||||||||||||
Interest income | $ | 2,762,449 | $ | 399,591 | $ | 5,220,288 | $ | 409,664 | ||||||||
Fee income | 131,250 | 410,000 | 131,250 | 410,000 | ||||||||||||
Total investment income | 2,893,699 | 809,591 | 5,351,538 | 819,664 | ||||||||||||
EXPENSES | ||||||||||||||||
Income-based incentive fees | 442,673 | - | 646,494 | - | ||||||||||||
Management fee | 257,489 | 55,041 | 495,908 | 55,041 | ||||||||||||
Legal expenses | 87,256 | 222,982 | 186,016 | 257,051 | ||||||||||||
Audit expense | 87,500 | 83,750 | 185,383 | 93,750 | ||||||||||||
Administrator fees | 87,853 | 62,546 | 165,697 | 109,697 | ||||||||||||
Insurance expense | 66,393 | 75,542 | 135,475 | 122,030 | ||||||||||||
Valuation fees | 21,000 | - | 94,065 | - | ||||||||||||
Director expenses | 31,746 | 35,747 | 67,690 | 35,747 | ||||||||||||
Professional fees | 17,775 | - | 35,967 | 40,885 | ||||||||||||
Custodian fees | 12,000 | - | 24,000 | 24,000 | ||||||||||||
Organizational expenses | - | - | - | 34,168 | ||||||||||||
Capital gains incentive fees | (137,602 | ) | - | 5,000 | - | |||||||||||
Other expenses | 20,204 | 52,738 | 39,708 | 41,581 | ||||||||||||
Total expenses | 994,287 | 588,346 | 2,081,403 | 813,950 | ||||||||||||
NET INVESTMENT INCOME (LOSS) | 1,899,412 | 221,245 | 3,270,135 | 5,714 | ||||||||||||
NET REALIZED GAIN (LOSS) FROM INVESTMENTS | ||||||||||||||||
Non-controlled/non-affiliate investments | (210,767 | ) | - | (210,767 | ) | - | ||||||||||
Net realized gain (loss) from investments | (210,767 | ) | - | (210,767 | ) | - | ||||||||||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS | ||||||||||||||||
Non-controlled/non-affiliate investments | (477,241 | ) | (9,508 | ) | 509,116 | (9,508 | ) | |||||||||
Net change in unrealized appreciation/(depreciation) on investments | (477,241 | ) | (9,508 | ) | 509,116 | (9,508 | ) | |||||||||
Net realized and unrealized gains (losses) | (688,008 | ) | (9,508 | ) | 298,349 | (9,508 | ) | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,211,404 | $ | 211,737 | $ | 3,568,484 | $ | (3,794 | ) | |||||||
NET INVESTMENT INCOME (LOSS) PER SHARE — BASIC AND DILUTED | $ | 0.31 | $ | 0.04 | $ | 0.53 | $ | - | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE — BASIC AND DILUTED | $ | 0.19 | $ | 0.03 | $ | 0.57 | $ | - | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING — BASIC AND DILUTED | 6,214,672 | 6,214,672 | 6,214,672 | 4,893,441 |
Three Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
INVESTMENT INCOME: | ||||||||
Non-control/non-affiliate investment income: | ||||||||
Fee income | $ | 410,000 | $ | - | ||||
Interest income | 399,591 | - | ||||||
Total investment income: | 809,591 | - | ||||||
EXPENSES: | ||||||||
Legal expenses | 222,982 | - | ||||||
Audit Expense | 83,750 | 10,000 | ||||||
Insurance fees | 75,542 | - | ||||||
Administrator fees | 62,546 | - | ||||||
Management fee | 55,041 | - | ||||||
Director expenses | 35,747 | - | ||||||
Organizational expenses | - | 154,062 | ||||||
Other expenses | 52,738 | - | ||||||
Total expenses | 588,346 | 164,062 | ||||||
NET INVESTMENT INCOME (LOSS) | 221,245 | (164,062 | ) | |||||
NET REALIZED GAIN (LOSS) FROM INVESTMENT | - | - | ||||||
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) FROM INVESTMENTS: | ||||||||
Non-controlled/non-affiliate investments | (9,508 | ) | - | |||||
Net change in unrealized appreciation/(depreciation) from investments | (9,508 | ) | - | |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 211,737 | $ | (164,062 | ) | |||
NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED | $ | 0.04 | $ | (425.03 | ) | |||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC AND DILUTED | $ | 0.03 | $ | (425.03 | ) | |||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED | 6,214,672 | 386 |
Common Stock | ||||||||||||||||||||
Three Months Ended June 30, 2023 | Shares | Par Value | Additional paid-in-capital | Distributable Earnings/ (Accumulated Loss) | Total net assets | |||||||||||||||
Balance, March 31, 2023 | 6,214,672 | $ | 62,147 | $ | 85,038,887 | $ | 3,731,775 | $ | 88,832,809 | |||||||||||
Net increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
Net investment income (loss) | - | - | - | 1,899,412 | 1,899,412 | |||||||||||||||
Net realized gain (loss) from investments | - | - | - | (210,767 | ) | (210,767 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) from investments | - | - | - | (477,241 | ) | (477,241 | ) | |||||||||||||
Total net increase (decrease) in net assets resulting from operations | - | - | - | 1,211,404 | 1,211,404 | |||||||||||||||
Capital transactions | ||||||||||||||||||||
Issuance of common stock | - | - | - | - | - | |||||||||||||||
Total increase (decrease) in net assets | - | - | - | 1,211,404 | 1,211,404 | |||||||||||||||
Effect of permanent adjustments | - | - | - | - | - | |||||||||||||||
Balance, June 30, 2023 | 6,214,672 | $ | 62,147 | $ | 85,038,887 | $ | 4,943,179 | $ | 90,044,213 |
Common Stock | ||||||||||||||||||||
Three Months Ended June 30, 2022 | Shares | Par value | Additional paid-in-capital | Distributable Earnings/ (Accumulated Loss) | Total net assets/ (net liabilities) | |||||||||||||||
Balance, March 31, 2022 | 6,214,672 | $ | 62,147 | $ | 84,917,788 | $ | (427,845 | ) | $ | 84,552,090 | ||||||||||
Net increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
Net investment income (loss) | - | - | - | 221,245 | 221,245 | |||||||||||||||
Net realized gain (loss) from investments | - | - | - | - | - | |||||||||||||||
Net change in unrealized appreciation (depreciation) from investments | - | - | - | (9,508) | (9,508) | |||||||||||||||
Total net increase (decrease) in net assets resulting from operations | - | - | - | 211,737 | 211,737 | |||||||||||||||
Capital transactions | ||||||||||||||||||||
Issuance of common stock, net of offering cost | - | - | - | - | - | |||||||||||||||
Total increase (decrease) in net assets | - | - | - | 211,737 | 211,737 | |||||||||||||||
Effect of permanent adjustments | - | - | - | - | - | |||||||||||||||
Balance, June 30, 2022 | 6,214,672 | $ | 62,147 | $ | 84,917,788 | $ | (216,108 | ) | $ | 84,763,827 |
Common Stock | ||||||||||||||||||||
Six Months Ended June 30, 2023 | Shares | Par Value | Additional paid-in-capital | Distributable Earnings/ (Accumulated Loss) | Total net assets | |||||||||||||||
Balance, December 31, 2022 | 6,214,672 | $ | 62,147 | $ | 84,917,788 | $ | 1,495,794 | $ | 86,475,729 | |||||||||||
Net increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
Net investment income (loss) | - | - | - | 3,270,135 | 3,270,135 | |||||||||||||||
Net realized gain (loss) from investments | - | - | - | (210,767 | ) | (210,767 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) from investments | - | - | - | 509,116 | 509,116 | |||||||||||||||
Total net increase (decrease) in net assets resulting from operations | - | - | - | 3,568,484 | 3,568,484 | |||||||||||||||
Capital transactions | ||||||||||||||||||||
Issuance of common stock | - | - | - | - | - | |||||||||||||||
Total increase (decrease) in net assets | - | - | - | 3,568,484 | 3,568,484 | |||||||||||||||
Effect of permanent adjustments | - | - | 121,099 | (121,099 | ) | - | ||||||||||||||
Balance, June 30, 2023 | 6,214,672 | $ | 62,147 | $ | 85,038,887 | $ | 4,943,179 | $ | 90,044,213 |
Common Stock | ||||||||||||||||||||
Six Months Ended June 30, 2022 | Shares | Par value | Additional paid-in-capital | Distributable Earnings/ (Accumulated Loss) | Total net assets/ (net liabilities) | |||||||||||||||
Balance, December 31, 2021 | 386 | $ | 4 | $ | 5,396 | $ | (507,549 | ) | $ | (502,149 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
Net investment income (loss) | - | - | - | 5,714 | 5,714 | |||||||||||||||
Net realized gain (loss) from investments | - | - | - | - | - | |||||||||||||||
Net change in unrealized appreciation (depreciation) from investments | - | - | - | (9,508 | ) | (9,508 | ) | |||||||||||||
Total net increase (decrease) in net assets resulting from operations | - | - | - | (3,794 | ) | (3,794 | ) | |||||||||||||
Capital transactions | ||||||||||||||||||||
Issuance of common stock, net of offering costs of $1,609,184 | 6,214,286 | 62,143 | 85,207,627 | - | 85,269,770 | |||||||||||||||
Total increase (decrease) in net assets | 6,214,286 | 62,143 | 85,207,627 | (3,794 | ) | 85,265,976 | ||||||||||||||
Effect of permanent adjustments | - | - | (295,235 | ) | 295,235 | - | ||||||||||||||
Balance, June 30, 2022 | 6,214,672 | $ | 62,147 | $ | 84,917,788 | $ | (216,108 | ) | $ | 84,763,827 |
For the six months ended | ||||||||
June 30, 2023 | June 30, 2022 | |||||||
Cash flows from operating activities | ||||||||
Net increase (decrease) in net assets resulting from operations | $ | 3,568,484 | $ | (3,794 | ) | |||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||
Net realized (gain) loss from investments | 210,767 | - | ||||||
Net change in unrealized (appreciation) depreciation from investments | (509,116 | ) | 9,508 | |||||
Net (accretion of discounts) and amortization of premiums | (301,558 | ) | (9,508 | ) | ||||
Purchase of investments | (8,442,000 | ) | (24,417,500 | ) | ||||
PIK interest capitalized | (62,587 | ) | - | |||||
Proceeds from sales of investments and principal repayments | 1,690,000 | - | ||||||
(Increase)/Decrease in operating assets: | ||||||||
Prepaid expenses | (147,334 | ) | (207,249 | ) | ||||
Interest receivable | 967,713 | (66,090 | ) | |||||
Deferred offering costs | - | 1,395,059 | ||||||
Increase/(Decrease) in operating liabilities: | ||||||||
Management fee payable | 86,524 | 55,041 | ||||||
Income-based incentive fees payable | 646,494 | - | ||||||
Capital gains incentive fees payable | 5,000 | - | ||||||
Legal fees payable | 30,249 | 204,251 | ||||||
Administrator fees payable | 32,672 | 99,852 | ||||||
Valuation fees payables | 93,185 | - | ||||||
Audit fees payable | 1,183 | 62,250 | ||||||
Professional fees payable | (2,438 | ) | - | |||||
Director’s fee payable | (302 | ) | 35,747 | |||||
Excise tax payable | (80,566 | ) | - | |||||
Due to affiliate | 2,497 | (383,164 | ) | |||||
Offering cost payable | - | (1,024,256 | ) | |||||
Organizational costs payable | - | (430,276 | ) | |||||
Other payables | (18,527 | ) | 23,406 | |||||
Net cash provided by (used in) operating activities | (2,229,660 | ) | (24,656,723 | ) | ||||
Cash flows from financing activities | ||||||||
Issuance of common stock, net of offering cost | - | 85,269,770 | ||||||
Net cash provided by (used in) financing activities | - | 85,269,770 | ||||||
Net increase (decrease) in cash & cash equivalents | (2,229,660 | ) | 60,613,047 | |||||
Cash & cash equivalents, beginning of period | 35,125,320 | 5,400 | ||||||
Cash & cash equivalents, end of period | $ | 32,895,660 | $ | 60,618,447 |
Common Stock | ||||||||||||||||||||
Three Months Ended June 30, 2022 | Shares | Par Value | Additional paid-in-capital | Distributable Earnings/(Accumulated Loss) | Total net assets/(net liabilities) | |||||||||||||||
Balance, March 31, 2022 | 6,214,672 | $ | 62,147 | $ | 84,917,788 | $ | (427,845 | ) | $ | 84,552,090 | ||||||||||
Net increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
Net investment income (loss) | - | - | - | 221,245 | 221,245 | |||||||||||||||
Net realized gain (loss) from investments | - | - | - | - | - | |||||||||||||||
Net change in unrealized appreciation (depreciation) from investments | - | - | - | (9,508 | ) | (9,508 | ) | |||||||||||||
Capital transactions | ||||||||||||||||||||
Issuance of common stock | - | - | - | - | - | |||||||||||||||
Total increase (decrease) in net assets | - | - | - | 211,737 | 211,737 | |||||||||||||||
Balance, June 30, 2022 | 6,214,672 | $ | 62,147 | $ | 84,917,788 | $ | (216,108 | ) | $ | 84,763,827 |
Common Stock | ||||||||||||||||||||
Three Months Ended June 30, 2021 | Shares | Par value | Additional paid-in-capital | Distributable Earnings/(Accumulated Loss) | Total net assets/(net liabilities) | |||||||||||||||
Balance, March 31, 2021 | - | $ | - | $ | - | $ | (159,715 | ) | $ | (159,715 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | ||||||||||||||||||||
Net investment income (loss) | - | - | - | (164,062 | ) | (164,062 | ) | |||||||||||||
Net realized gain (loss) from investments | - | - | - | - | - | |||||||||||||||
Net change in unrealized appreciation (depreciation) from investments | - | - | - | - | - | |||||||||||||||
Capital transactions | ||||||||||||||||||||
Issuance of common stock, net of offering cost | 386 | 4 | 5,396 | - | 5,400 | |||||||||||||||
Total increase (decrease) in net assets | 386 | 4 | 5,396 | (164,062 | ) | (158,662 | ) | |||||||||||||
Balance, June 30, 2021 | 386 | $ | 4 | $ | 5,396 | $ | (323,777 | ) | $ | (318,377 | ) |
Portfolio Company (1) | Type of Investment (2) | Investment Date (3) | Maturity Date | Interest Rate (4) | Fair Value Hierarchy (5) | Geographic Region (6) | Non-Qualifying Asset (7) | Principal Amount (8) | Amortized Cost | Fair Value (9) | % of Net Assets | |||||||||||||||
Debt Securities - United States | ||||||||||||||||||||||||||
Wholesale Trade (10) | ||||||||||||||||||||||||||
Curaleaf Holdings, Inc. | Senior Secured Note | 10/11/2022 | 12/15/2026 | Fixed interest rate 8.0% | 3 | Northeast | Yes | $ | 4,500 | $ | 3,919 | $ | 4,028 | 4.47 | % | |||||||||||
Dreamfields Brands, Inc. (d/b/a Jeeter) | Senior Secured First Lien Term Loan | 5/3/2023 | 5/3/2026 | Variable interest rate PRIME(11) + 8.75% (7.5% PRIME Floor) | 3 | West | No | 4,320 | 4,217 | 4,217 | 4.68 | |||||||||||||||
MariMed Inc. | Senior Secured First Lien Term Loan | 1/24/2023 | 1/24/2026 | Variable interest rate PRIME(11) + 5.75% Cash (6.25% PRIME Floor) 1.40% PIK | 3 | Northeast | No | 4,437 | 4,185 | 4,216 | 4.68 | |||||||||||||||
PharmaCann, Inc. | Senior Secured Note | 6/30/2022 | 6/30/2025 | Fixed interest rate 12.0% | 3 | Midwest | No | 4,250 | 4,069 | 3,910 | 4.34 | |||||||||||||||
STIIIZY, Inc. (f/k/a Shryne Group, Inc.) | Senior Secured First Lien Term Loan | 5/26/2022 | 5/26/2026 | Variable interest rate PRIME(11) + 8.5% (4.0% PRIME Floor) 1.0% PIK | 3 | West | No | 21,035 | 20,588 | 20,718 | 23.01 | |||||||||||||||
Verano Holdings Corp. | Senior Secured First Lien Term Loan | 10/27/2022 | 10/30/2026 | Variable interest rate PRIME(11) + 6.5% (6.25% PRIME Floor) | 3 | Midwest | Yes | 21,000 | 20,455 | 20,580 | 22.86 | |||||||||||||||
$ | 59,542 | 57,433 | 57,669 | 64.04 | ||||||||||||||||||||||
Total: Debt Securities -United States (64.04%): | 57,433 | 57,669 | 64.04 | |||||||||||||||||||||||
Total: Debt Securities (64.04%): | 57,433 | 57,669 | 64.04 | |||||||||||||||||||||||
Total Investment in Securities (64.04%): | $ | 57,433 | $ | 57,669 | 64.04 | % | ||||||||||||||||||||
Cash equivalents | ||||||||||||||||||||||||||
State Street Institutional U.S. Government Money Market Fund (12) | 1 | $ | 32,032 | $ | 32,032 | 35.57 | % | |||||||||||||||||||
Cash equivalents (35.57%): | 32,032 | 32,032 | 35.57 | |||||||||||||||||||||||
Total Portfolio Investments and Cash equivalents (99.61%): | $ | 89,465 | $ | 89,701 | 99.61 | % |
Three Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net increase (decrease) in net assets resulting from operations | $ | 211,737 | $ | (164,062 | ) | |||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | ||||||||
Net change in unrealized (appreciation) depreciation from investments | 9,508 | - | ||||||
Net (accretion of discounts) and amortization of premiums | (9,508 | ) | - | |||||
Purchase of investments | (24,417,500 | ) | - | |||||
(Increase)/Decrease in operating assets: | ||||||||
Prepaid expenses | 49,263 | - | ||||||
Interest receivable | (56,875 | ) | - | |||||
Deferred offering costs | - | (597,809 | ) | |||||
Increase/(Decrease) in operating liabilities: | ||||||||
Legal fees payable | 170,268 | - | ||||||
Management fee payable | 55,041 | - | ||||||
Other payables | 22,047 | - | ||||||
Director's fee payable | 11,377 | - | ||||||
Due to affiliate | 827 | 153,846 | ||||||
Offering cost payable | (264,581 | ) | 456,381 | |||||
Audit fees payable | 52,250 | 10,000 | ||||||
Administrator fees payable | 52,701 | - | ||||||
Organizational costs payable | (34,168 | ) | 141,644 | |||||
Net cash provided by (used in) operating activities | (24,147,613 | ) | - | |||||
Cash flows from financing activities: | ||||||||
Issuance of common stock, net of offering cost | - | 5,400 | ||||||
Net cash provided by (used in) financing activities | - | 5,400 | ||||||
Net increase (decrease) in cash & cash equivalents | (24,147,613 | ) | 5,400 | |||||
Cash & cash equivalents, beginning of period | 84,766,060 | - | ||||||
Cash & cash equivalents, end of period | $ | 60,618,447 | $ | 5,400 |
Portfolio Company (1) | Type of Investment (2) | Investment Date (3) | Maturity Date | Interest Rate (4) | Fair Value Hierarchy (5) | Principal Amount (6) | Amortized Cost | Fair Value (7) | % of Net Assets | |||||||||||||||||||
Debt Securities - United States | ||||||||||||||||||||||||||||
Wholesale Trade (8) | ||||||||||||||||||||||||||||
Shryne Group, Inc. | Senior Secured Term Loan | 5/26/2022 | 5/26/2026 | Variable interest rate PRIME(9) + 8.5% or Floor Rate 12.5% | 3 | 21,000 | $ | 20,432 | $ | 20,422 | 24.09 | % | ||||||||||||||||
PharmaCann, Inc. | Senior Secured Term Loan | 6/30/2022 | 6/30/2025 | Fixed interest rate 12% | 3 | 4,250 | 3,995 | 3,995 | 4.71 | |||||||||||||||||||
25,250 | 24,427 | 24,417 | 28.80 | |||||||||||||||||||||||||
Total: Debt Securities - United States (28.80%): | 24,427 | 24,417 | 28.80 | |||||||||||||||||||||||||
Total: Debt Securities (28.80%): | ||||||||||||||||||||||||||||
Total Investment in Securities (28.80%): | $ | 24,427 | $ | 24,417 | 28.80 | % | ||||||||||||||||||||||
Cash equivalents | ||||||||||||||||||||||||||||
State Street Insitutional US Money Market | 1 | $ | 60,613 | $ | 60,613 | 71.51 | % | |||||||||||||||||||||
Cash equivalents (71.51%): | 60,613 | 60,613 | 71.51 | |||||||||||||||||||||||||
Total Portfolio Investments and Cash equivalents (100.31%): | $ | 85,040 | $ | 85,030 | 100.31 | % |
(1) | All portfolio companies are located in the United |
(2) |
(3) | Investment date represents the date of initial investment, at which date interest began accruing. |
(4) | Interest rate is the fixed or variable rate of the debt |
(5) | See Note 2 |
(6) | Geographic regions are determined by the respective portfolio company’s headquarters’ location. |
(7) | Under the Investment Company Act of 1940, as amended (the “1940 Act”), a business development company (“BDC”) may not acquire any “non-qualifying asset” (i.e., an asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as “qualifying assets”), unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. As of June 30, 2023 the aggregate fair value of non-qualifying assets is $24,608 or 26.9% of the Company’s total assets. |
(8) | Principal is net of repayments, if any, as per the terms of the debt instrument’s contract. |
(9) | All investments were valued at fair value. See Note 4 — Fair Value of Financial Instruments in the accompanying notes to the financial statements. |
(10) | The Company uses the North American Industry Classification System (“NAICS”) code for classifying the industry grouping of its portfolio companies. |
(11) | As of June 30, |
(12) | The annualized seven-day yield as of June 30, 2023 is 5.03%. |
Portfolio Company (1) | Type of Investment (2) | Investment Date (3) | Maturity Date | Interest Rate (4) | Fair Value Hierarchy (5) | Geographic Region (6) | Non-Qualifying Asset (7) | Principal Amount (8) | Amortized Cost | Fair Value (9) | % of Net Assets | |||||||||||||||
Debt Securities - United States | ||||||||||||||||||||||||||
Wholesale Trade (10) | ||||||||||||||||||||||||||
AYR Wellness, Inc. | Senior Secured Note | 10/11/2022 | 12/10/2024 | Fixed interest rate 12.5% | 3 | Southeast | No | $ | 2,000 | $ | 1,773 | $ | 1,773 | 2.05 | % | |||||||||||
Curaleaf Holdings, Inc. | Senior Secured Note | 10/11/2022 | 12/15/2026 | Fixed interest rate 8.0% | 3 | Northeast | No | 4,500 | 3,854 | 3,854 | 4.46 | |||||||||||||||
PharmaCann, Inc. | Senior Secured Note | 6/30/2022 | 6/30/2025 | Fixed interest rate 12.0% | 3 | Midwest | No | 4,250 | 4,029 | 3,967 | 4.59 | |||||||||||||||
Shryne Group, Inc. | Senior Secured First Lien Term Loan | 5/26/2022 | 5/26/2026 | Variable interest rate PRIME(11) + 8.5% (4.0% PRIME Floor) | 3 | West | No | 21,000 | 20,480 | 20,269 | 23.44 | |||||||||||||||
Verano Holdings Corp. | Senior Secured First Lien Term Loan | 10/27/2022 | 10/30/2026 | Variable interest rate PRIME(11) + 6.5% (6.25% PRIME Floor) | 3 | Midwest | No | 21,000 | 20,392 | 20,392 | 23.58 | |||||||||||||||
$ | 52,750 | 50,528 | 50,255 | 58.12 | ||||||||||||||||||||||
Total: Debt Securities - United States (58.12%): | 50,528 | 50,255 | 58.12 | |||||||||||||||||||||||
Total: Debt Securities (58.12%): | 50,528 | 50,255 | 58.12 | |||||||||||||||||||||||
Total Investment in Securities (58.12%): | $ | 50,528 | $ | 50,255 | 58.12 | % | ||||||||||||||||||||
Cash equivalents | ||||||||||||||||||||||||||
State Street Institutional U.S. Government Money Market Fund (12) | 1 | $ | 35,125 | $ | 35,125 | 40.62 | % | |||||||||||||||||||
Cash equivalents (40.62%): | 35,125 | 35,125 | 40.62 | |||||||||||||||||||||||
Total Portfolio Investments and Cash equivalents (98.74%): | $ | 85,653 | $ | 85,380 | 98.74 | % |
(1) | All portfolio companies are located in the United States. |
(2) | No debt investment is non-income producing as of December 31, 2022. |
(3) | Investment date represents the date of initial investment, at which date interest began accruing. |
(4) | Interest rate is the fixed or variable rate of the debt investments. |
(5) | See Note 2 – Significant Accounting Policies and Note 4 — Fair Value of Financial Instruments in the accompanying notes to the financial statements. |
(6) | Geographic regions are determined by the respective portfolio company’s headquarters’ location. |
(7) | Under the Investment Company Act of 1940, as amended (the “1940 Act”), a business development company (“BDC”) may not acquire any “non-qualifying asset” (i.e., an asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as “qualifying assets”), unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. |
(8) | Principal is net of repayments, if any, as per the terms of the debt instrument’s contract. |
(9) | All investments were valued at fair value. See Note 4 — Fair Value of Financial Instruments in the accompanying notes to the financial statements. |
(10) | The Company uses the North American Industry Classification System (“NAICS”) code for classifying the industry grouping of its portfolio companies. |
(11) | As of December 31, 2022 PRIME is 7.50%. |
(12) | The annualized seven-day yield as of December 31, 2022 is 4.12%. |
With respect to investments for which market quotations are readily available, those investments will typically be valued at the bid price of those market quotations; |
• | Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or for which all significant inputs are observable, either directly or indirectly; and |
June 30, 2022 | June 30, 2023 | |||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||
Industry | Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||
Wholesale Trade | $ | 24,427,008 | 100.0 | % | $ | 24,417,500 | 100.0 | % | $ | 57,433,276 | 100.0 | % | $ | 57,669,044 | 100.0 | % | ||||||||||||||||
Total | $ | 24,427,008 | 100.0 | % | $ | 24,417,500 | 100.0 | % | $ | 57,433,276 | 100.0 | % | $ | 57,669,044 | 100.0 | % |
December 31, 2022 | ||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
Industry | Amount | % | Amount | % | ||||||||||||
Wholesale Trade | $ | 50,527,898 | 100.0 | % | $ | 50,254,550 | 100.0 | % | ||||||||
Total | $ | 50,527,898 | 100.0 | % | $ | 50,254,550 | 100.0 | % |
June 30, 2022 | June 30, 2023 | |||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||
Geographic Location | Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||
West | $ | 24,805,417 | 43.2 | $ | 24,936,044 | 43.2 | % | |||||||||||||||||||||||||
Midwest | $ | 3,995,182 | 16.36 | % | $ | 3,995,000 | 16.36 | % | 24,523,799 | 42.7 | % | 24,490,000 | 42.5 | |||||||||||||||||||
West | 20,431,826 | 83.64 | 20,422,500 | 83.64 | ||||||||||||||||||||||||||||
Northeast | 8,104,060 | 14.1 | 8,243,000 | 14.3 | ||||||||||||||||||||||||||||
Total | $ | 24,427,008 | 100.0 | % | $ | 24,417,500 | 100.0 | % | $ | 57,433,276 | 100.0 | % | $ | 57,669,044 | 100.0 | % |
December 31, 2022 | ||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
Geographic Location | Amount | % | Amount | % | ||||||||||||
Midwest | $ | 24,420,752 | 48.4 | % | $ | 24,358,686 | 48.5 | % | ||||||||
West | 20,479,987 | 40.5 | 20,268,705 | 40.3 | ||||||||||||
Northeast | 3,854,475 | 7.6 | 3,854,475 | 7.7 | ||||||||||||
Southeast | 1,772,684 | 3.5 | 1,772,684 | 3.5 | ||||||||||||
Total | $ | 50,527,898 | 100.0 | % | $ | 50,254,550 | 100.0 | % |
June 30, 2022 | June 30, 2023 | |||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||||
Investment | Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||
Senior Secured Term Loan | $ | 24,427,008 | 100.0 | % | $ | 24,417,500 | 100.0 | % | ||||||||||||||||||||||||
Senior Secured First Lien Term Loan | $ | 49,445,243 | 86.1 | % | $ | 49,731,544 | 86.2 | % | ||||||||||||||||||||||||
Senior Secured Notes | 7,988,033 | 13.9 | 7,937,500 | 13.8 | ||||||||||||||||||||||||||||
Total | $ | 24,427,008 | 100.0 | % | $ | 24,417,500 | 100.0 | % | $ | 57,433,276 | 100.0 | % | $ | 57,669,044 | 100.0 | % |
December 31, 2022 | ||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||
Investment | Amount | % | Amount | % | ||||||||||||
Senior Secured First Lien Term Loan | $ | 40,871,914 | 80.9 | % | $ | 40,660,633 | 80.9 | % | ||||||||
Senior Secured Notes | 9,655,984 | 19.1 | 9,593,917 | 19.1 | ||||||||||||
Total | $ | 50,527,898 | 100.0 | % | $ | 50,254,550 | 100.0 | % |
Fair Value Measurements at June 30, 2023 Using | ||||||||||||||||
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Senior Secured First Lien Term Loan | $ | - | $ | - | $ | 49,731,544 | $ | 49,731,544 | ||||||||
Senior Secured Notes | - | - | 7,937,500 | 7,937,500 | ||||||||||||
Total | $ | - | $ | - | $ | 57,669,044 | $ | 57,669,044 |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Senior Secured Term Loan | $ | - | $ | - | $ | 24,417,500 | $ | 24,417,500 | ||||||||
Total Investments | $ | - | $ | - | $ | 24,417,500 | $ | 24,417,500 |
Fair Value Measurements at December 31, 2022 Using | ||||||||||||||||
Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Senior Secured First Lien Term Loan | $ | - | $ | - | $ | 40,660,663 | $ | 40,660,663 | ||||||||
Senior Secured Notes | - | - | 9,593,917 | 9,593,917 | ||||||||||||
Total | $ | - | $ | - | $ | 50,254,580 | $ | 50,254,580 |
Investment Type | Fair Value as of June 30, 2022 | Valuation Techniques/ Methodologies | Unobservable Input | Range | Weighted Average | Fair Value as of June 30, 2023 | Valuation Techniques/ Methodologies | Unobservable Input | Range | Weighted Average (1) | ||||||||||||||||||||||
Senior Secured Term Loan | $ | 24,417,500 | Recent Transaction | N/A | N/A | N/A | ||||||||||||||||||||||||||
Senior Secured First Lien Term Loan | $ | 49,731,544 | Discounted Cash Flow | Discount Rate | 8.4% - 11.4 | % | 9.9 | % | ||||||||||||||||||||||||
Senior Secured Notes | 7,937,500 | Discounted Cash Flow | Discount Rate | 12.2% - 17.6 | % | 14.8 | % | |||||||||||||||||||||||||
Total | $ | 24,417,500 | $ | 57,669,044 |
Investment Type | Fair Value as of December 31, 2022 | Valuation Techniques/ Methodologies | Unobservable Input | Range | Weighted Average (1) | ||||||||||
Senior Secured First Lien Term Loan | $ | 40,660,633 | Discounted Cash Flow | Discount Rate | 7.2% - 9.6 | % | 8.4 | % | |||||||
Volatility | 20.0% - 20.0 | % | 20.0 | % | |||||||||||
Senior Secured Notes | 9,593,917 | Discounted Cash Flow | Discount Rate | 11.6% - 18.7 | % | 14.3 | % | ||||||||
Volatility | 7.0% - 20.0 | % | 12.4 | % | |||||||||||
Total | $ | 50,254,550 |
Senior Secured First Lien Term Loan | Senior Secured Notes | Total Investments | ||||||||||
Fair Value as of December 31, 2022 | $ | 40,660,633 | $ | 9,593,917 | $ | 50,254,550 | ||||||
Purchases | 8,442,000 | - | 8,442,000 | |||||||||
Accretion of discount and fees (amortization of premium), net | 158,740 | 142,818 | 301,558 | |||||||||
PIK interest | 62,587 | - | 62,587 | |||||||||
Proceeds from sales of investments and principal repayments | (90,000 | ) | (1,600,000 | ) | (1,690,000 | ) | ||||||
Net realized gain (loss) on investments | - | (210,767 | ) | (210,767 | ) | |||||||
Net change in unrealized appreciation (depreciation) on investments | 497,584 | 11,532 | 509,116 | |||||||||
Balance as of June 30, 2023 | $ | 49,731,544 | $ | 7,937,500 | $ | 57,669,044 | ||||||
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of June 30, 2023 | $ | 497,584 | $ | 11,532 | $ | 509,116 |
Senior Secured Term Loan | Total Investments | |||||||
Fair Value as of March 31, 2022 | $ | - | $ | - | ||||
Net realized gain (loss) on investments | - | - | ||||||
Net change in unrealized appreciaton (depreciation) on investments | (9,508 | ) | (9,508 | ) | ||||
Payment in-kind | - | - | ||||||
Purchases of investments | 24,417,500 | 24,417,500 | ||||||
Amortization of premium (accretion of discount and fees), net | 9,508 | 9,508 | ||||||
PIK interest | - | - | ||||||
Proceeds from sales of investments | - | - | ||||||
Proceeds from principal repayments | - | - | ||||||
Balance as of June 30,2022 | $ | 24,417,500 | $ | 24,417,500 | ||||
Net change in unrealized appreciation//depreciation on Level 3 investments still held as of June 30, 2022 | $ | (9,508 | ) | $ | (9,508 | ) |
Senior Secured First Lien Term Loan | Total Investments | |||||||
Fair Value as of December 31, 2021 | $ | - | $ | - | ||||
Purchases | 24,417,500 | 24,417,500 | ||||||
Accretion of discount and fees (amortization of premium), net | 9,508 | 9,508 | ||||||
PIK interest | - | - | ||||||
Proceeds from sales of investments and principal repayments | - | - | ||||||
Net realized gain (loss) on investments | - | - | ||||||
Net change in unrealized appreciation (depreciation) on investments | (9,508 | ) | (9,508 | ) | ||||
Balance as of June 30, 2022 | $ | 24,417,500 | $ | 24,417,500 | ||||
Net change in unrealized appreciation/depreciation on Level 3 investments still held as of June 30, 2022 | $ | (9,508 | ) | $ | (9,508 | ) |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |||||||
Net investment income (loss) | $ | 221,245 | $ | (164,062 | ) | |||
Net increase (decrease) in net assets resulting from operations | $ | 211,737 | $ | (164,062 | ) | |||
Weighted Average Shares Outstanding | 6,214,672 | 386 | ||||||
Net investment income per share - basic and diluted | $ | 0.04 | $ | (425.03 | ) | |||
Net increase (decrease) in net assets resulting from operations per common share - basic and diluted | $ | 0.03 | $ | (425.03 | ) |
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 1,211,404 | $ | 211,737 | $ | 3,568,484 | $ | (3,794 | ) | |||||||
Weighted Average Shares Outstanding - basic and diluted | 6,214,672 | 6,214,672 | 6,214,672 | 4,893,441 | ||||||||||||
Net increase (decrease) in net assets resulting from operations per share - basic and diluted | $ | 0.19 | $ | 0.03 | $ | 0.57 | $ | - |
March 31, 2023 | ||||
Undistributed ordinary income | $ | 3,418,714 | ||
Net unrealized appreciation (depreciation) on investments | 713,009 | |||
Other temporary differences | (399,948 | ) | ||
Total | $ | 3,731,775 |
June 30, 2022 | ||||
Tax Cost of Investments | $ | 24,427,008 | ||
Unrealized appreciation | $ | - | ||
Unrealized depreciation | (9,508 | ) | ||
Net unrealized appreciation (depreciation) from investment | $ | (9,508 | ) |
June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||
Tax cost of investments and cash equivalents | $ | 89,465,059 | $ | 87,454,317 | $ | 85,653,218 | ||||||
Unrealized appreciation | $ | 394,377 | $ | 713,009 | $ | - | ||||||
Unrealized depreciation | (158,609 | ) | - | (273,348 | ) | |||||||
Net unrealized appreciation (depreciation) from investments and cash equivalents | $ | 235,768 | $ | 713,009 | $ | (273,348 | ) |
Three Months Ended June 30, 2022 | ||||
Per share data: | ||||
Net asset value at beginning of period | $ | 13.61 | ||
Net investment income (loss) (1) | 0.04 | |||
Net realized and unrealized gains/(losses) on investments(1) | (0.01 | ) | ||
Net increase/(decrease) in net assets resulting from operations | 0.03 | |||
Net asset value at end of period | $ | 13.64 | ||
Net assets at end of period | $ | 84,763,827 | ||
Shares outstanding at end of period | 6,214,672 | |||
Weighted average net assets | $ | 84,554,417 | ||
Weighted average shares outstanding | 6,214,672 | |||
Per share market value at end of period | $ | 9.78 | ||
Total return based on market value (2) | (26.47 | )% | ||
Total return based on net asset value (2) | 0.22 | % | ||
Ratio/Supplemental data: | ||||
Ratio of expenses to average net assets(3) | 0.70 | % | ||
Ratio of net investment income (loss) to weighted average net assets(3) | 0.26 | % | ||
Portfolio turnover | N/A |
Six Months Ended | Period from February 3, 2022 to | |||||||
June 30, 2023 | June 30, 2022* | |||||||
Per share data: | ||||||||
Net asset value at beginning of period | $ | 13.91 | $ | 14.00 | ||||
Net investment income (loss) (1) | 0.53 | (0.04 | ) | |||||
Net realized and unrealized gains/(losses) on investments(1) | 0.05 | - | ||||||
Net increase/(decrease) in net assets resulting from operations | 0.58 | (0.04 | ) | |||||
Offering costs (2) | - | (0.27 | ) | |||||
Permanent tax adjustments (2) | - | (0.05 | ) | |||||
Net asset value at end of period | $ | 14.49 | $ | 13.64 | ||||
Net assets at end of period | $ | 90,044,213 | $ | 84,763,827 | ||||
Shares outstanding at end of period | 6,214,672 | 6,214,672 | ||||||
Weighted average net assets | $ | 87,669,473 | $ | 84,059,336 | ||||
Per share market value at end of period | $ | 8.18 | $ | 9.78 | ||||
Total return based on market value (3) | (16.53 | )% | (30.14 | )% | ||||
Total return based on net asset value (3) | 4.17 | % | (2.57 | )% | ||||
Ratio/Supplemental data: | ||||||||
Ratio of expenses to average net assets(4) | 2.37 | % | 0.94 | % | ||||
Ratio of net investment income (loss) to average net assets(4) | 3.73 | % | 0.04 | % | ||||
Portfolio turnover (4) | 3 | % | N/A |
* | The Company was formed on January 25, 2021 and the effective date of the registration statement was February 3, 2022. |
(1) | The per share data was derived by using the weighted average shares outstanding during the six months ended June 30, 2023. For the period from February 3, 2022 to June 30, 2022, the per share data was derived by adding (deducting) the increase (decrease) per share in undistributed net investment income during the period presented to (from) dividends from net investment income per share. |
(2) | The per share data was derived by using the shares outstanding during the period from February 3, 2022 to June 30, 2022. SSC has absorbed the cost of the sales load (i.e, underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock. |
(3) | Total return based on market value is based on the change in market price per share between the beginning and ending market prices per share in each period and assumes that common stock dividends are reinvested in accordance with our common stock dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the beginning and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our common stock dividend reinvestment plan. For periods less than a year, total return is not annualized. |
(4) | Ratio is not annualized. |
Item 2. |
June 30, 2022 | ||||||||
Type | Amortized Cost | Fair Value | ||||||
Senior Secured Term Loan | 100.00 | % | 100.00 | % | ||||
Total | 100.00 | % | 100.00 | % |
June 30, 2023 | ||||||||
Type | Amortized Cost | Fair Value | ||||||
Senior Secured First Lien Term Loan | 86.1 | % | 86.2 | % | ||||
Senior Secured Notes | 13.9 | 13.8 | ||||||
Total | 100.0 | % | 100.0 | % |
December 31, 2022 | ||||||||
Type | Amortized Cost | Fair Value | ||||||
Senior Secured First Lien Term Loan | 80.9 | % | 80.9 | % | ||||
Senior Secured Notes | 19.1 | 19.1 | ||||||
Total | 100.0 | % | 100.0 | % |
June 30, 2022 | ||||||||
Geographic Region | Amortized Cost | Fair Value | ||||||
Midwest | 16.36 | % | 16.36 | % | ||||
West | 83.64 | % | 83.64 | % | ||||
Total | 100.00 | % | 100.00 | % |
June 30, 2023 | ||||||||
Geographic Region | Amortized Cost | Fair Value | ||||||
West | 43.2 | % | 43.2 | % | ||||
Midwest | 42.7 | 42.5 | ||||||
Northeast | 14.1 | 14.3 | ||||||
Total | 100.0 | % | 100.0 | % |
December 31, 2022 | ||||||||
Geographic Region | Amortized Cost | Fair Value | ||||||
Midwest | 48.4 | % | 48.5 | % | ||||
West | 40.5 | 40.3 | ||||||
Northeast | 7.6 | 7.7 | ||||||
Southeast | 3.5 | 3.5 | ||||||
Total | 100.0 | % | 100.0 | % |
June 30, 2022 | ||||||||
Industry | Amortized Cost | Fair Value | ||||||
Wholesale Trade | 100.00 | % | 100.00 | % | ||||
Total | 100.00 | % | 100.00 | % |
June 30, 2023 | ||||||||
Industry | Amortized Cost | Fair Value | ||||||
Wholesale Trade | 100.0 | % | 100.0 | % | ||||
Total | 100.0 | % | 100.0 | % |
December 31, 2022 | ||||||||
Industry | Amortized Cost | Fair Value | ||||||
Wholesale Trade | 100.0 | % | 100.0 | % | ||||
Total | 100.0 | % | 100.0 | % |
Three Months Ended June 30, 2022 | Three Months Ended June 30,2021 | |||||||
Beginning Portfolio, at fair value | $ | - | $ | - | ||||
Purchases | 24,417,500 | - | ||||||
Amortization of premium (accretion of discount and fees), net | 9,508 | - | ||||||
PIK interest | - | - | ||||||
Principal payments received on investments | - | - | ||||||
Proceeds from early debt repayments | - | - | ||||||
Sale of investments | - | - | ||||||
Accretion of OID | - | - | ||||||
Net realized gain/(loss) | - | - | ||||||
Net change in unrealized appreciation/(depreciation) | (9,508 | ) | - | |||||
Ending Portfolio, at fair value | $ | 24,417,500 | $ | - |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||
Beginning Portfolio, at fair value | $ | 50,254,550 | $ | - | ||||
Purchases | 8,442,000 | 24,417,500 | ||||||
Accretion of discount and fees (amortization of premium), net | 301,558 | 9,508 | ||||||
PIK interest | 62,587 | - | ||||||
Proceeds from sales of investments and principal repayments | (1,690,000 | ) | - | |||||
Net realized gain/(loss) on investments | (210,767 | ) | - | |||||
Net change in unrealized appreciation/(depreciation) on investments | 509,116 | (9,508 | ) | |||||
Ending Portfolio, at fair value | $ | 57,669,044 | $ | 24,417,500 |
Investment | ||
Performance Risk | ||
Rating | Summary Description | |
Grade 1 | ||
Grade 2 | Investment is performing in-line with expectations. Investments rated 2 involve an acceptable level of risk that is similar to the risk at the time of origination or acquisition. Risk factors remain neutral or favorable compared with initial underwriting. All investments or acquired investments in new portfolio companies are | |
Grade 3 | ||
Grade 4 | ||
Grade 5 |
June 30, 2022 | June 30, 2023 | ||||||||||||||||||
Investment Performance Risk Rating | Investments at Fair Value | Percentage of Total Investments | Investment Performance Risk Rating | Investments at Fair Value | Percentage of Total Investments | ||||||||||||||
1 | $ | - | - | % | $ | - | - | % | |||||||||||
2 | 24,417,500 | 100.00 | 57,669,044 | 100.00 | |||||||||||||||
3 | - | - | - | - | |||||||||||||||
4 | - | - | | - | - | ||||||||||||||
5 | - | - | - | - | |||||||||||||||
Total | $ | 24,417,500 | 100.00 | % | Total | $ | 57,669,044 | 100.00 | % |
December 31, 2022 | ||||||||||
Investment Performance Risk Rating | Investments at Fair Value | Percentage of Total Investments | ||||||||
1 | $ | - | - | % | ||||||
2 | 50,254,550 | 100.00 | ||||||||
3 | - | - | ||||||||
4 | - | - | ||||||||
5 | - | - | ||||||||
Total | $ | 50,254,550 | 100.00 | % |
Three Months Ended June 30, 2022 | Three Months Ended June 30,2021 | |||||
Stated interest income | $ | 390,083 | $ | - | ||
Accretion of premium | 9,508 | - | ||||
Acceleration of amortization of original issue discount | - | - | ||||
Payment in-kind interest | - | - | ||||
Prepayment penalty and related fees | - | - | ||||
Other fee income | 410,000 | - | ||||
Total investment income | $ | 809,591 | $ | - |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||
Stated interest | $ | 2,550,696 | $ | 390,083 | $ | 4,856,143 | $ | 400,156 | ||||||||
Accretion of discount and fees (amortization of premium), net | 160,739 | 9,508 | 301,558 | 9,508 | ||||||||||||
Payment in-kind interest | 51,014 | - | 62,587 | - | ||||||||||||
Fee income | 131,250 | 410,000 | 131,250 | 410,000 | ||||||||||||
Total investment income | $ | 2,893,699 | $ | 809,591 | $ | 5,351,538 | $ | 819,664 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||||||||
Gross unrealized appreciation | $ | - | $ | - | $ | 99,357 | $ | - | $ | 605,659 | $ | - | ||||||||||||
Gross unrealized depreciation | (9,508 | ) | - | (576,598 | ) | (9,508 | ) | (96,543 | ) | (9,508 | ) | |||||||||||||
Total net unrealized gains (losses) on investments | $ | (9,508 | ) | $ | - | |||||||||||||||||||
Total net unrealized appreciation (depreciation) on investments | $ | (477,241 | ) | $ | (9,508 | ) | $ | 509,116 | $ | (9,508 | ) |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||
STIIIZY, Inc. (f/k/a Shryne Group Inc.) | $ | 68,415 | $ | (9,325 | ) | $ | 341,831 | $ | (9,325 | ) | ||||||
Verano Holdings Corp. | (340,337 | ) | - | 124,811 | - | |||||||||||
MariMed Inc. | 30,864 | - | 30,863 | - | ||||||||||||
Dreamfields Brands, Inc. (d/b/a Jeeter) | 78 | - | 78 | - | ||||||||||||
PharmaCann, Inc. | (180,757 | ) | (183 | ) | (96,543 | ) | (183 | ) | ||||||||
Curaleaf Holdings, Inc. | (48,917 | ) | - | 108,076 | - | |||||||||||
AYR Wellness, Inc. | (6,587 | ) | - | - | - | |||||||||||
Total net change in unrealized appreciation (depreciation) on investments | $ | (477,241 | ) | $ | (9,508 | ) | $ | 509,116 | $ | (9,508 | ) |
With respect to investments for which market quotations are readily available, those investments will typically be valued at the bid price of those market quotations; |
• | Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or for which all significant inputs are observable, either directly or indirectly; and |
Price Range | ||||||||||||||||||||||||
Class and Period | Net Asset Value(1) | High | Low | High Sales Price Premium (Discount) to Net Asset Value(2) | Low Sales Price Premium (Discount) to Net Asset Value(2) | Cash Dividend Per Share(3) | ||||||||||||||||||
Year Ended March 31, 2023 | ||||||||||||||||||||||||
Second Quarter (through August 9, 2022) | * | $ | 9.98 | $ | 9.25 | * | * | * | ||||||||||||||||
First Quarter | $ | 13.64 | $ | 13.50 | $ | 7.80 | -1.0 | % | -42.8 | % | - | |||||||||||||
Year Ended March 31, 2022 | ||||||||||||||||||||||||
Fourth Quarter(4) | $ | 13.61 | $ | 14.41 | $ | 12.57 | 5.9 | % | -7.6 | % | $ | - |
Price Range | ||||||||||||||||||||||||
Class and Period | Net Asset Value(1) | High | Low | High Sales Price Premium (Discount) to Net Asset Value(2) | Low Sales Price Premium (Discount) to Net Asset Value(2) | Cash Dividend Per Share(3) | ||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||
Third Quarter (Through August 9, 2023) | $ | * | $ | 8.82 | $ | 7.65 | * | * | * | |||||||||||||||
Second Quarter | $ | 14.49 | $ | 9.19 | $ | 7.82 | -36.6 | % | -46.0 | % | - | |||||||||||||
First Quarter | $ | 14.29 | $ | 9.98 | $ | 8.25 | -30.2 | % | -42.3 | % | - | |||||||||||||
Year Ended December 31, 2022(4) | ||||||||||||||||||||||||
Fourth Quarter | $ | 13.91 | $ | 10.55 | $ | 9.57 | -24.2 | % | -31.2 | % | - | |||||||||||||
Third Quarter | $ | 13.73 | $ | 10.74 | $ | 9.00 | -21.8 | % | -34.5 | % | - | |||||||||||||
Second Quarter | $ | 13.64 | $ | 13.50 | $ | 7.80 | -1.0 | % | -42.8 | % | - | |||||||||||||
First Quarter(5) | $ | 13.61 | $ | 14.41 | $ | 12.57 | 5.9 | % | -7.6 | % | - |
Item 3. |
Change in Interest Rates | Interest Income | Interest expense | Net Income/(Loss) | Interest Income | Interest expense | Net Income/(Loss) | |||||||||||||||
Up 300 basis points | $ | 630 | $ | - | $ | 630 | $ | 1,523 | $ | - | $ | 1,523 | |||||||||
Up 200 basis points | 420 | - | 420 | 1,015 | - | 1,015 | |||||||||||||||
Up 100 basis points | 210 | - | 210 | 508 | - | 508 | |||||||||||||||
Down 100 basis points | (210) | - | (210) | (497 | ) | - | (497 | ) | |||||||||||||
Down 200 basis points | (420) | - | (420) | (961 | ) | - | (961 | ) | |||||||||||||
Down 300 basis points | (630) | - | (630) | (1,171 | ) | - | (1,171 | ) |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. |
Item 3. |
Item 4. |
Item 5. |
Item 6. |
Exhibit Number | Description of Exhibit |
Articles of Amendment and Restatement of the | |
Amended and Restated Bylaws of the | |
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* | |
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* |
* | Filed herewith. |
(1) | Incorporated by reference to the Company’s annual report on Form 10-K/A, filed on June 30, 2022. |
SILVER SPIKE INVESTMENT CORP. | |||
By: | /s/ Scott Gordon | ||
Scott Gordon | |||
Chief Executive Officer (Principal Executive Officer) | |||
By: | /s/ Umesh Mahajan | ||
Chief Financial Officer |