Risk Factors Update Summary

• The alternative reference rates replacing LIBOR may affect credit arrangements and financial instruments. This change is significant as it impacts the calculation process and economic results.
• Net investment income increased by $18.6 million, or 39.9%, from 2022 to 2023.
• The Financial Accounting Standards Board issued ASU No. 2023-09, requiring additional income tax disclosures.
• Increase in First Lien Debt interest rate from 6.25% to 7.75% for Applied Data Corporation.
• Total net realized gain on investments decreased from $65.6 million in 2022 to $24.1 million in 2023.
• The transition to SOFR from LIBOR is detailed, with a focus on the impact on loans and financial instruments. This change is important due to the shift in reference rates.
• The number of shares of common stock outstanding increased from 692 to 509 million.
• Net change in unrealized appreciation on control investments increased by $11,083, from $13,233 to $24,316.
• Added detailed requirements for Independent Directors and Access Persons regarding filing reports and securities transactions.
• Undistributed ordinary taxable income increased from $28 million to $32 million. This may impact future dividend distributions.
• The Company closed a public offering of $55,000 in aggregate principal amount, with underwriting discounts of $1,898, offering expenses of $300, totaling $61,053. This resulted in a realized loss on extinguishment of debt of approximately $1,311.
• The Company's portfolio investments decreased from $860,329 in 2022 to $957,906 in 2023.
• The company increased its maximum amount of shares to be sold through the ATM Program to $150.0 million.
• Net change in unrealized appreciation on affiliate investments increased by $8,395, from $35,979 to $44,374.
• Increase in First Lien Debt interest rate from 6.25% to 7.75% for AOM Intermediate Holdco, LLC.
• The Company closed an offering of $125,000 in aggregate principal amount based on a public offering price of 100.00% of par. After deducting underwriting discounts of approximately $2,505 and offering expenses of $400, the total was $122,095. The associated loans' fair value was $16,875.
• Introduced a Compensation Recoupment Policy effective as of December 1, 2023, for Executive Officers.
• The number of shares beneficially owned by stockholders with 10% or more voting power increased from 842 to 646 million.
• Changes in interest rates could materially affect the company's investments and financial condition, potentially leading to increased default rates. This change highlights the sensitivity to interest rate fluctuations.
• Debt investments increased from $333,846 in 2022 to $336,741 in 2023.
• Long term capital gains decreased from $11 million to $9 million. This affects potential shareholder returns.
• Net change in unrealized appreciation on non-control/non-affiliate investments increased by $13,047, from $16,490 to $29,537.
• Change in interest rate from 6.25% to 9.75% for Virtex Enterprises, LP.
• Total distributable earnings decreased from $85 million to $84 million. This may impact future distributions.
• The potential impact of economic downturns or recessions on the company's portfolio value and revenues is emphasized. This change underscores the vulnerability to economic cycles.
• The outstanding principal balance of the January 2026 Notes was $125.0 million as of December 31, 2023.
• Proceeds from sales and repayments of investments increased from $193,980 in 2022 to $258,875 in 2023.
• Equity investments decreased from $117,741 in 2022 to $120,264 in 2023.
• The carrying value of secured borrowings decreased from $17,637 to $16,880, and the fair value of associated loans decreased from $17,522 to $16,875. The interest rate on secured borrowings increased from 7.8% to 9.4%.
• Clarified definitions such as "Excess Incentive-Based Compensation" and "Lookback Period" for financial reporting measures.
• Failure to maintain qualification for RIC tax treatment could lead to adverse effects.
• The weighted average stated interest rate on total debt outstanding decreased from 4.037% in 2022 to 3.346% in 2023.
• The cybersecurity risks and potential breaches pose a threat to the company's operations, financial data, and reputation. This change highlights the importance of cybersecurity measures.
• The aggregate amount outstanding of senior securities decreased from $267,637 to $266,880, with asset coverage changing from 282.2% to 280.0%.
• Net gain on investments increased by $12,050, from $95,247 to $107,297.
• The fair value of control and affiliate investments increased from $368,817 in 2022 to $429,785 in 2023.
• Legislative and regulatory changes, including tax policies, could impact the company's operations and financial results. This change points to the uncertainty surrounding legal and regulatory frameworks.
• Sales of common stock under the ATM Program increased from $5,811 to $5,308 for the period ending December 31, 2022, and from $5,308 to $111,872 for the period ending December 31, 2023.
• Deemed distribution of long-term capital gains increased by $32,233, from ($40,801) to ($8,568).
• The company invested $5.0 million in Janus Health Technologies, Inc. on January 3, 2024.
• The Company's outstanding SBA debentures decreased from $210,000 in 2022 to $153,000 in 2023.
• The company repaid $35.0 million of SBA debentures on February 28, 2024.
• The potential effects of geopolitical events, such as hostilities in the Middle East and sanctions against Russia, on global markets are highlighted. This change indicates the consideration of geopolitical risks.
• Proceeds from sales and repayments of investments increased by $64,895, from $193,980 to $258,875.
• The Company increased the maximum amount of shares to be sold through the ATM Program from $50,000 to $150,000.
• The Company repurchased 25,719 shares of common stock on the open market, with an average purchase price of $18.61, totaling $1,577.
• Net cash provided by operating activities increased by $137,438, from ($105,537) to $31,901.