Expenses
Total expenses net of waivers for the three and nine months ended September 30, 2024 and 2023, were as follows:
| | | | | | | | | | | | |
| | Three Months Ended | | Three Months Ended | | Nine Months Ended | | Nine Months Ended |
| | September 30, 2024 | | September 30, 2023 | | September 30, 2024 | | September 30, 2023 |
Base management fee(a) | | $ | 1,061,088 | | $ | 1,022,684 | | $ | 3,158,434 | | $ | 3,215,515 |
Incentive fee(a) | | | 1,465,399 | | | 1,487,402 | | | 4,315,250 | | | 4,234,793 |
Interest expense(b) | | | — | | | 27,390 | | | — | | | 446,070 |
Professional fees | | | 147,656 | | | 190,921 | | | 503,583 | | | 402,827 |
Directors’ fees | | | 69,000 | | | 63,750 | | | 216,000 | | | 191,250 |
Administrative fee(a) | | | 66,250 | | | 66,250 | | | 198,750 | | | 198,750 |
Other expenses | | | 88,118 | | | 79,267 | | | 323,544 | | | 217,501 |
Total expenses | | | 2,897,511 | | | 2,937,664 | | | 8,715,561 | | | 8,906,706 |
Base management fee waivers(a) | | | (371,381) | | | (357,939) | | | (1,105,452) | | | (1,125,430) |
Incentive fee waivers(a) | | | (902,083) | | | (893,033) | | | (2,694,707) | | | (2,671,096) |
Total expenses, net of waivers | | $ | 1,624,047 | | $ | 1,686,692 | | $ | 4,915,402 | | $ | 5,110,180 |
(a)Refer to Note 4-Related Party Transactions within the financial statements for a description of the relevant fees.
(b)Refer to Note 8-Borrowings within the financial statements for a description of the relevant expenses.
The increase in base management fees before waivers for the three months ended September 30, 2024 in comparison to the three months ended September 30, 2023 was driven by our increasing average gross assets balance. For the three months ended September 30, 2024 and 2023, we accrued gross base management fees before waivers of $1,061,088 and $1,022,684, respectively. Offsetting those fees, we recognized base management fee waivers of $371,381 and $357,939 for three months ended September 30, 2024 and 2023, respectively.
The decrease in base management fees before waivers for the nine months ended September 30, 2024 in comparison to the nine months ended September 30, 2023 was driven by our decreasing average gross assets balance. For the nine months ended September 30, 2024 and 2023, we accrued gross base management fees before waivers of $3,158,434 and $3,215,515, respectively. Offsetting those fees, we recognized base management fee waivers of $1,105,452 and $1,125,430 for nine months ended September 30, 2024 and 2023, respectively.
The decrease in incentive fees before waivers for the three months ended September 30, 2024 in comparison to the three months ended September 30, 2023 was driven by our decrease in net investment income. For the three months ended September 30, 2024 and 2023, we accrued incentive fees related to net investment income before waivers of $1,465,399 and $1,487,402, respectively. Offsetting those fees, we recognized incentive fee waivers of $902,083 and $893,033, respectively.
The increase in incentive fees before waivers for the nine months ended September 30, 2024 in comparison to the nine months ended September 30, 2023 was driven by our increase in net investment income. For the nine months ended September 30, 2024 and 2023, we accrued incentive fees related to net investment income before waivers of $4,315,250 and $4,234,793, respectively. Offsetting those fees, we recognized incentive fee waivers of $2,694,707 and $2,671,096, respectively.
Additionally, we accrued $66,250 and $198,750 of administrative fees for each of the three and nine-month periods ended September 30, 2024 and 2023, respectively. Refer to Note 4 — Related Party Transactions in the notes accompanying our financial statements for more information related to base management fees, incentive fees and waivers.
During the three and nine months ended September 30, 2024, we incurred professional fees of $147,656 and $503,583, respectively, related to audit fees, tax fees, and legal fees. During the three and nine months ended September 30, 2023, we incurred professional fees of $190,921 and $402,827, respectively, related to audit fees, tax fees, and legal fees.
During the three and nine months ended September 30, 2024, we incurred expenses related to fees paid to our independent directors of $69,000 and $216,000, respectively. During the three and nine months ended September 30, 2023, we incurred expenses related to fees paid to our independent directors of $63,750 and $191,250, respectively.
