Financial Data and Key Metrics Changes - Gross investment income for Q1 2025 was $11.9 million, a decrease from $12.7 million in Q4 2024 [11] - Net investment income was $7.6 million or $0.34 per share, compared to $8.0 million or $0.35 per share in the previous quarter [12] - Net expenses were $4.3 million, slightly down from $4.4 million in the last quarter [12] - Net assets at quarter end were $301 million, with NAV per share at $13.19 [12] Business Line Data and Key Metrics Changes - The company has 31 portfolio companies, with 21% of the portfolio invested outside of cannabis [12] - The average debt position size is 3% of the debt portfolio, with 76% of the portfolio being floating rate [13] - The gross weighted average yield on company debt investments is approximately 16.6% [13] Market Data and Key Metrics Changes - The company has originated $52.8 million in gross fundings since October 1, 2024, with $32.3 million committed and $20.8 million funded in Q1 2025 [7] - The pipeline includes approximately $590 million in potential debt transactions across 35 unique companies, with $462 million in cannabis opportunities and $128 million in non-cannabis investments [16] Company Strategy and Development Direction - The company focuses on lending to cannabis companies and other underserved markets, aiming to deploy capital with differentiated risk-reward profiles [5] - The strategy includes maintaining a disciplined underwriting approach and being selective with borrowers to build durable investment portfolios [19] - The company aims to grow its dividend component as it scales its platform, having declared a total of $1.27 in dividends over the last four quarters [8] Management's Comments on Operating Environment and Future Outlook - Management believes the outlook for common sense reforms in the cannabis industry is positive, but the timing remains unpredictable [10] - The company is positioned well for 2025, focusing on proven operators and strong markets to support growth initiatives [10] - Management emphasizes a long-term view of partnership building with operators, regardless of broader market conditions [23] Other Important Information - The company has no non-accruals compared to an industry average of 3.9% [7] - A new $100 million credit facility was closed during the quarter, providing ample liquidity for future investments [14] Q&A Session Summary Question: General macro outlook and deployment readiness - The company maintains a focus on individual state markets rather than the broader U.S. cannabis industry, allowing for disciplined deployment of capital [23][25] Question: Pipeline activity comparison to previous quarters - There is no significant difference in the ratio of cannabis to non-cannabis investments, with fluctuations being ordinary [26] Question: Flexibility to increase the credit facility - The company sees room to grow its senior secured credit facility and add modest unsecured notes in a disciplined manner [27] Question: Debt leverage threshold - The company expects to remain well below industry averages for debt leverage in the foreseeable future [28] Question: Dividend growth expectations - The company does not provide specific dividend guidance but will distribute nearly all of its income by the end of the year [30]

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q1 2025 on May 14, 2025, before market open[5] - The earnings conference call and live audio webcast will take place at 9:00 a.m. Eastern Time on May 14, 2025[5] - The press release regarding the financial results is included as Exhibit 99.1 to the Current Report[5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-40564 CHICAGO ATLANTIC BDC, INC. (Exact name of registrant as specified in its charter) | Maryland 86-2872887 | | | | --- | --- | --- | | (State or other jurisdi ...

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) -- Chicago Atlantic BDC, Inc. (the “Company”) (NASDAQ: LIEN), a specialty finance company that has elected to be regulated as a business development company, today announced details for the release of its financial results for the first quarter ended March 31, 2025. The Company plans to release its financial results for the first quarter ended March 31, 2025 before the market opens on Wednesday, May 14, 2025, and host a conference call and live audio webcast, both o ...

Chicago Atlantic BDC (LIEN) Q4 2024 Earnings Call March 31, 2025 01:07 PM ET Company Participants Tripp Sullivan - Investor Relations, SCR PartnersPeter Sack - CEOMartin Rodgers - CFODino Colonna - PresidentPablo Zuanic - Managing Partner Operator Good morning, and welcome to the Chicago Atlantic BDC Fourth Quarter twenty twenty four Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Tripp Sullivan of Inves ...

Fourth Quarter and Full Year 2024 Earnings Presentation March 31, 2025 Disclaimers and Forward-Looking Statements The information contained in this presentation should be viewed in conjunction with the earnings conference call of Chicago Atlantic BDC, Inc. (the "Company") (Nasdaq: LIEN) held on March 31, 2025, and the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any o ...

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q4 and the year ended December 31, 2024, on March 31, 2025[4]. - The earnings conference call will take place at 8:30 a.m. Eastern Time on March 31, 2025[4]. - The company has not disclosed specific financial metrics or performance indicators in this report[5]. Dividends - The company announced a cash dividend for the quarter ending March 31, 2025, details of which will be provided in a press release[13]. - The press release regarding the cash dividend is included as Exhibit 99.2 to the Current Report[14]. Leadership Changes - Mr. Andreas Bodmeier resigned as CEO on March 13, 2025, with no disagreements reported regarding company operations[10]. - Mr. Peter Sack has been appointed as the new CEO, bringing experience as a credit investor and portfolio manager[11][12]. - Ms. Supurna VedBrat and Mr. Patrick McCauley were appointed as Class 1 and Class 3 Directors, respectively, following the resignation of previous directors[6][7]. - The company has a history of strategic leadership changes, indicating a focus on governance and operational effectiveness[10][11]. Company Classification - The company is classified as an emerging growth company under the Securities Act[2].

IPO and Acquisitions - The company completed its IPO on February 8, 2022, raising approximately $83.3 million from the sale of 6,071,429 shares at $14.00 per share[20]. - On October 1, 2024, the company acquired a loan portfolio valued at $219,621,125 by issuing 16,605,372 shares of common stock[23]. - The company’s common stock began trading on the Nasdaq Global Market under the symbol "LIEN" on October 2, 2024[22]. Investment Strategy and Focus - The company has an active pipeline of investments, currently reviewing approximately $644 million in potential investments[35]. - The company’s investment strategy was expanded on February 20, 2024, to include investments outside the cannabis and health and wellness sectors[22]. - The company focuses on investing in private leveraged lower middle-market and middle-market companies with up to $100 million in EBITDA[35]. - The company’s investment objective is to maximize risk-adjusted returns on equity for shareholders through secured and unsecured debt investments[32]. - Chicago Atlantic's investment strategy focuses on senior secured loans, subordinated loans, and equity investments, aiming for attractive risk-adjusted returns[72]. - The company aims to maximize risk-adjusted returns on equity for shareholders by focusing on the cannabis industry and lower middle-market investment opportunities[74]. Financial Performance and Market Trends - As of December 31, 2024, Chicago Atlantic managed $1.9 billion in Capital Under Management, which includes total committed investor capital and available leverage[48]. - Estimated U.S. state-legal cannabis retail sales reached $32 billion in 2024, projected to grow to approximately $58 billion by 2030[52]. - Public and private cannabis capital raises in 2024 included $0.5 billion in equity and $1.2 billion in debt, indicating a shift towards increased reliance on debt financing[58]. - The number of public and private cannabis mergers and acquisitions in 2024 decreased to 45 deals, down from 67 in 2023[59]. - The capital raising environment for private credit reached $209 billion in 2024, a 5% increase over 2023, highlighting strong momentum in the market[62]. - The cannabis industry is experiencing a significant increase in demand for credit-based solutions as companies prefer less dilutive forms of growth capital[61]. - Companies in the lower middle-market are expected to continue requiring access to debt capital for growth and refinancing, creating investment opportunities[67]. - The reliance on debt financing in the cannabis industry is expected to persist until significant federal reform is enacted[56]. Management and Operations - The company has restructured its Board and management team following the Loan Portfolio Acquisition and Joint Venture[28]. - The management team possesses extensive expertise in cannabis and non-cannabis industries, enhancing the company's ability to evaluate investment opportunities[76]. - The company plans to leverage its management team's networks to become a leading investor in the legal cannabis industry and lower middle-market[77]. - The company does not have any employees; day-to-day management is handled by the Adviser and its Investment Committee[125]. - The Adviser is responsible for determining fair value and is designated as the Valuation Designee, subject to Board oversight[111]. Investment Process and Due Diligence - The investment process involves direct origination networks and relationships with entrepreneurs, private equity firms, and investment banks to identify opportunities[81]. - The company seeks to invest primarily through loans, which typically have maturities of two to six years, with interest paid on a floating rate basis[84][85]. - The investment criteria focus on businesses with durable competitive advantages, consistent operational performance, and free cash flow generation[87]. - The company employs a multi-channel sourcing strategy to identify investment opportunities, emphasizing strong management teams[89]. - The due diligence process includes a structured call with management, financial analysis, and on-site meetings to assess the portfolio company's performance and plans[92][94]. - The company monitors portfolio companies' financial trends and employs a five-level numeric rating scale to evaluate credit profiles and expected returns[104]. Valuation and Financial Reporting - The company conducts quarterly NAV determinations, with NAV per share calculated as total assets minus liabilities divided by total shares outstanding[118]. - Investments rated 1 indicate the borrower is performing above expectations, while those rated 5 indicate substantial underperformance and non-compliance with debt covenants[106]. - The fair value of investments is determined based on observable market prices or valuation techniques, with a multi-step valuation process conducted quarterly[113][114]. - Changes in market conditions can lead to fluctuations in the fair value of investments, which may differ from realized gains or losses[116][117]. - The NAV per share is adjusted based on management's assessment of material changes since the last reported NAV[123]. - The company records investments at fair value, with realized gains or losses measured against the amortized cost basis[110]. Fees and Expenses - The base management fee is calculated at an annual rate of 1.75% of the company's gross assets, excluding cash and cash equivalents[135]. - The incentive fee on income is based on the company's "Pre-Incentive Fee Net Investment Income," with a hurdle rate of 1.75% per quarter (7% annualized)[136]. - The incentive fee on capital gains equals 20% of cumulative realized capital gains, less cumulative realized capital losses and unrealized capital depreciation[139]. - The company incurred a $6 million Incentive Fee on Capital Gains in Year 2 from the sale of Investment A, which generated $30 million in realized capital gains[153]. - In Year 3, the company recorded an Incentive Fee on Capital Gains of $1.4 million based on cumulative realized capital gains[153]. - The company has an annualized hurdle rate of 1.75% and a management fee of 0.4375%[149][150]. - The Expense Limitation Agreement caps operating expenses at an annualized rate of 2.15% of the company's net assets through September 30, 2025[168]. Compliance and Governance - The company has adopted a code of ethics to establish procedures for personal investments and restrict certain personal securities transactions[208]. - Compliance policies and procedures are in place to prevent violations of federal securities laws, with annual reviews for adequacy and effectiveness[209]. - Proxy voting responsibility has been delegated to the Adviser, which will vote in the best interest of stockholders[210]. - The company is subject to periodic examination by the SEC for compliance with the 1940 Act[216]. - None of the investment policies are fundamental and may be changed without stockholder approval[217].

Group 1 - The Company, Chicago Atlantic BDC, Inc., has declared a cash dividend of $0.34 per share for the quarter ending March 31, 2025 [1] - Key dates for the dividend include a record date of March 28, 2025, and a payment date of April 11, 2025 [1] - The Company has a dividend reinvestment plan (DRIP) that allows stockholders to reinvest dividends into additional shares unless they opt to receive cash [1] Group 2 - Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940 [2] - The Company's investment objective is to maximize risk-adjusted returns on equity by primarily investing in direct loans to privately held middle-market companies, focusing on the cannabis sector [2] - The Company is managed by Chicago Atlantic BDC Advisers, LLC, which specializes in the cannabis industry and other niche sectors [2]

Core Viewpoint - Chicago Atlantic BDC, Inc. is set to release its financial results for the fourth quarter and full year ended December 31, 2024, on March 31, 2025, before market opening [1][2]. Group 1: Financial Results Announcement - The financial results will be announced before the market opens on March 31, 2025 [2]. - A conference call and live audio webcast will be held on the same day at 8:30 a.m. Eastern Time, accessible to the general public [2][6]. - The conference call can be accessed via phone at (833) 630-1956 for domestic callers and (412) 317-1837 for international callers [2]. Group 2: Company Overview - Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940 [4]. - The company's investment objective focuses on maximizing risk-adjusted returns on equity by primarily investing in direct loans to privately held middle-market companies, particularly in the cannabis sector [4]. - The company is managed by Chicago Atlantic BDC Advisers, LLC, which specializes in the cannabis industry and other niche sectors [4].