Total expenses, net of credits, during the quarters ended September 30, 2021 and June 30, 2021 were $16.4 million and $20.3 million, respectively. The quarter over quarter decrease was primarily due to a $4.7 million decrease in the capital gains-based incentive fees in the current quarter, as a result of the net impact of realized and unrealized gains and losses, as the $0.8 million increase in interest expense, as a result of the issuance of the 2028 Notes, was largely offset by a $0.7 million decrease in dividend expense related to the redemption of the Series E Term Preferred Stock.
Net asset value per common share as of September 30, 2021 was $13.27, compared to $12.66 as of June 30, 2021. The quarter over quarter increase was primarily due to $27.5 million, or $0.83 per common share, of net unrealized appreciation, and $2.2 million, or $0.07 per common share, of net investment income, partially offset by $8.0 million, or $0.24 per common share, of distributions paid to common shareholders, and $1.5 million, or $0.05 per common share, of realized losses on investments and other.
Subsequent Events: After September 30, 2021, the following significant events occurred:
| | • | | Significant Investment Activity: |
| | • | | In October 2021, we invested $10.5 million in an existing portfolio company, Bassett Creek Services, Inc., in the form of secured first lien debt. |
| | • | | Distributions and dividends: In October 2021, our Board of Directors declared the following monthly and supplemental cash distributions to common stockholders: |
| | | | | | |
Record Date | | Payment Date | | Distribution per
Common Share | |
October 22, 2021 | | October 29, 2021 | | $ | 0.075 | |
November 19, 2021 | | November 30, 2021 | | | 0.075 | |
December 7, 2021 | | December 15, 2021 | | | 0.090 | (A) |
December 23, 2021 | | December 31, 2021 | | | 0.075 | |
| | | | | | |
| | Total for the Quarter: | | $ | 0.315 | |
| | | | | | |
| | |
| (A) Represents a supplemental distribution to common stockholders. |
Non-GAAP Financial Measure — Adjusted Net Investment Income: On a supplemental basis, the Company discloses Adjusted net investment income, including on a per share basis, which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with U.S. GAAP (“non-GAAP”). Adjusted net investment income represents net investment income, excluding capital gains-based incentive fees. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The Company’s investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized depreciation on investments for such year. However, under U.S. GAAP, a capital gains-based incentive fee is accrued if realized capital gains and unrealized appreciation of investments exceed realized capital losses and unrealized depreciation of investments. Refer to Note 4 – Related Party Transactions in our Quarterly Report on Form 10-Q for further discussion. The Company believes that Adjusted net investment income is a useful indicator of operations exclusive of any capital gains-based incentive fees, as net investment income does not include realized or unrealized investment activity associated with the capital gains-based incentive fee.
The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to Adjusted net investment income for the periods presented (dollars in thousands, except per share amounts; unaudited):
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