Core Viewpoint - Chicago Atlantic BDC, Inc. has secured a new $100 million senior secured revolving credit facility, enhancing its liquidity and flexibility for future portfolio growth [1][2] Group 1: Credit Facility Details - The new credit facility matures in March 2028 and has an interest rate of SOFR plus 3.00% [1] - The facility is led by an FDIC-insured financial institution, indicating a strong banking partnership [2] Group 2: Company Strategy and Performance - The company currently has no outstanding debt, allowing it to leverage the new credit facility for disciplined portfolio growth [2] - A recent dividend of $0.34 per share was announced, representing a 36% increase from the previous quarter's dividend of $0.25 per share [2] Group 3: Investment Focus and Portfolio Metrics - Chicago Atlantic BDC is primarily focused on the U.S. cannabis industry and seeks to invest in niche opportunities that are typically underserved by traditional capital sources [3][8] - As of October 1, 2024, the company reported a gross weighted-average yield of 17.2% on debt investments, with 79% of the portfolio consisting of floating rate loans [5]

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q3 2024 on November 8, 2024, before market open[2] - An earnings conference call and webcast will be held at 8:00 a.m. Eastern Time on November 8, 2024, to discuss the financial results[2]

Investment Portfolio - As of September 30, 2024, the investment portfolio had an aggregate fair value of approximately $55.8 million, consisting of $43.4 million in first lien, senior secured loans, $11.7 million in senior secured notes, and $0.7 million in equity securities across seven portfolio companies[89]. - The investment portfolio as of December 31, 2023, had a fair value of approximately $54.1 million, with $46.0 million in first lien, senior secured loans and $8.1 million in senior secured notes across five portfolio companies[89]. - As of September 30, 2024, the investment portfolio's fair value was $55,788,511, an increase from $54,120,000 on December 31, 2023[94]. - The largest portfolio company represented 35.6% of the total fair values of investments as of September 30, 2024, down from 38.7% on December 31, 2023[93]. - The investment portfolio's industry composition as of September 30, 2024, was 96.6% in Wholesale Trade and 3.4% in Real Estate Services[92]. - Senior Secured First Lien Term Loans accounted for 77.5% of the amortized cost as of September 30, 2024, slightly down from 84.9% on December 31, 2023[90]. - The geographic distribution of the portfolio as of September 30, 2024, showed 43.8% in the West and 42.7% in the Midwest, indicating a slight shift in regional investment focus[91]. - As of September 30, 2024, 100% of the company's portfolio investments are categorized at Level 3, requiring significant estimates for fair value assessment[106]. Investment Strategy - The company is currently reviewing approximately $559 million of potential investments in various stages of underwriting[82]. - The investment strategy includes a focus on the cannabis industry, with investments only in companies compliant with applicable laws, targeting entities that derive at least 50% of revenues from cannabis-related activities[83]. - The company aims to maximize risk-adjusted returns on equity for shareholders by generating current income from debt investments and capital appreciation from equity investments[82]. - The company has a strategy focused on growth capital and technology, targeting industry leaders and disruptive companies with strong growth trajectories[84]. - The liquidity solutions sub-strategy focuses on event-driven opportunities, including mergers and acquisitions, with companies showing strong cash flow performance and low leverage profiles[85]. - The company may invest in "covenant-lite" loans, which provide borrowers more freedom and may increase the risk of loss compared to loans with complete financial maintenance covenants[82]. - A new investment strategy was approved on February 20, 2024, allowing investments in companies outside of the cannabis and health and wellness sectors, effective April 22, 2024[114]. Financial Performance - Total investment income for the three months ended September 30, 2024, was approximately $3.2 million, compared to $2.9 million for the same period in 2023, reflecting a year-over-year increase of about 10.0%[98]. - The company had no loans in its portfolio placed on non-accrual status as of September 30, 2024, and December 31, 2023, indicating strong credit performance[97]. - The company reported a net change in unrealized appreciation on investments of $187,324 for the nine months ended September 30, 2024, compared to $166,012 for the same period in 2023[94]. - The company experienced a net realized gain/loss of $0 on investments for the nine months ended September 30, 2024, compared to a loss of $210,767 for the same period in 2023[94]. - Fee income for the three months ended September 30, 2024, was $489,176, significantly higher than $31,250 for the same period in 2023[98]. - Net investment income was approximately $0.0 million for the three months ended September 30, 2024, down from $1.6 million in the same period of 2023[99]. - Total operating expenses for the nine months ended September 30, 2024, were $7,557,191, a 123% increase from $3,381,392 in the same period of 2023[99]. - The company declared a quarterly dividend of $0.25 per share for the third quarter of 2024, with total dividends paid amounting to $1,553,676[113]. Market and Economic Conditions - The company is subject to financial market risks, including valuation risk, interest rate risk, and credit risk, due to political tensions and market volatility[120]. - The fair value of investments may fluctuate significantly due to the inherent uncertainty in determining fair value, especially for investments without readily available market quotations[121]. - As of September 30, 2024, 75.6% of the company's debt investments were floating-rate based on PRIME, while 24.4% were fixed-rate investments[122]. - For the year ended December 31, 2023, a 300 basis points increase in interest rates would result in a net income increase of $1,264 million[124]. - A 200 basis points increase in interest rates would lead to a net income increase of $843 million for the same period[124]. - Conversely, a 100 basis points decrease in interest rates would result in a net income loss of $400 million[124]. - A 300 basis points decrease in interest rates would lead to a net income loss of $934 million[124]. Corporate Governance and Structure - The company has a base management fee and an incentive fee structure under its Investment Advisory Agreement, which is based on a percentage of the value of average gross assets[107]. - The company has undergone a leadership change, with Andreas Bodmeier appointed as CEO and Umesh Mahajan as Co-Chief Investment Officer, among other board changes[117]. - The Company has been renamed "Chicago Atlantic BDC, Inc." with a new ticker symbol "LIEN," effective October 2, 2024[119]. - The company intends to maintain its tax treatment as a RIC by distributing at least 90% of its investment company taxable income annually[102]. - The company plans to enter into a credit facility in the future, depending on market conditions and other factors[101]. - The company’s primary use of funds will be investments in debt and equity securities, dividend payments, and operating expenses[101]. Legal and Regulatory Matters - The company is not currently subject to any material legal proceedings that could materially affect its financial condition or results of operations[128]. - The company does not expect any future legal or regulatory proceedings to have a material effect on its financial condition[128]. - The company recorded no sales or redemptions of investments during the three and nine months ended September 30, 2024[99]. - The company has not accrued any liability in connection with indemnifications due to the remote risk of loss based on past experience[108]. - The company reported no changes in internal control over financial reporting that materially affected its financial reporting during the three months ended September 30, 2024[127]. - The company has effective disclosure controls and procedures as of the end of the reporting period[126].

Investment Income and Assets - Total investment income for Q2 2024 was $3.1 million, with net investment income of $1.5 million, or $0.25 per share[2] - Total investment income for the three months ended June 30, 2024, was $3,081,333, an increase of 6.5% compared to $2,893,699 for the same period in 2023[18] - Net investment income for the three months ended June 30, 2024, was $1,525,633, compared to $1,899,412 for the same period in 2023, reflecting a decrease of 19.7%[18] - The investment portfolio had a fair value of $53.4 million, consisting of $44.3 million in secured loans, $8.3 million in secured notes, and $0.8 million in equity[8] - Total assets increased to $90,076,727 as of June 30, 2024, up from $88,576,271 at December 31, 2023, representing a growth of 1.69%[17] - As of June 30, 2024, total net assets were $84.3 million, down from $84.5 million as of March 31, 2024[7] - Cash and cash equivalents rose to $34,003,851 as of June 30, 2024, compared to $32,611,635 at December 31, 2023, marking an increase of 4.25%[17] Dividends and Shareholder Returns - The company declared a cash dividend of $0.25 per share, payable on September 27, 2024, to stockholders of record on September 19, 2024[2] - Net asset value (NAV) per share decreased from $13.60 on March 31, 2024, to $13.56 on June 30, 2024, primarily due to dividend payments[7] - The net asset value per share decreased to $13.56 as of June 30, 2024, down from $13.77 at December 31, 2023, a decline of 1.53%[17] Expenses and Financial Performance - Total expenses for the three months ended June 30, 2024, were $1,555,700, an increase of 56.4% from $994,287 in the same period last year[18] - The net increase in net assets resulting from operations for the three months ended June 30, 2024, was $1,292,861, compared to $1,211,404 for the same period in 2023, indicating a growth of 6.7%[18] - Transaction expenses related to the Loan Portfolio Acquisition for the three months ended June 30, 2024, were $533,019, with no expenses recorded for the same period in 2023[18] - The company reported a net realized gain (loss) from investments of $0 for the three months ended June 30, 2024, compared to a loss of $(210,767) in the same period last year[18] - Distributable earnings (accumulated losses) stood at $(834,860) as of June 30, 2024, compared to $449,266 at December 31, 2023[17] Strategic Activities - The company added one portfolio company during the quarter and made an additional investment on July 16, 2024[8] - The company is well-positioned to take advantage of increased debt capital markets activity, despite uncertainties in federal cannabis regulatory reform[3] - The company entered into a definitive agreement to purchase a loan portfolio from Chicago Atlantic Loan Portfolio, LLC, in exchange for newly issued shares of common stock[4] Unrealized Losses - The company recorded a net unrealized loss of $0.2 million during the quarter, mainly related to the fair valuation of debt investments[6]

Financial Position - Total assets as of June 30, 2024, were $90,076,727, an increase from $88,576,271 on December 31, 2023, representing a growth of approximately 1.7%[6] - Cash and cash equivalents increased to $34,003,851 from $32,611,635, reflecting a growth of about 4.2%[6] - Total liabilities rose to $5,818,654 from $3,023,653, indicating a significant increase of approximately 92.5%[6] - Net assets decreased to $84,258,073 from $85,552,618, a decline of about 1.5%[6] - The total net assets as of June 30, 2024, were $84,258,073, a decrease from $90,044,213 as of June 30, 2023, reflecting a decline of 6.4%[8] - Total net assets as of June 30, 2024, decreased to $84,258,073 from $86,475,729 as of December 31, 2022[9] Investment Income and Expenses - Interest income for the three months ended June 30, 2024, was $2,790,333, compared to $2,762,449 for the same period in 2023, reflecting a growth of 1.0%[7] - Total investment income for the six months ended June 30, 2024, was $5,841,580, an increase from $5,351,538 in the prior year, representing a growth of 9.1%[7] - Total expenses for the three months ended June 30, 2024, were $1,555,700, up from $994,287 in the same period last year, indicating a rise of 56.4%[7] - Net investment income for the three months ended June 30, 2024, was $1,525,633, down from $1,899,412 in the prior year, a decrease of 19.7%[7] - The company recorded a net investment income of $1,445,824 for the six months ended June 30, 2024, down from $3,270,135 for the same period in 2023[9] - The company incurred management fee expenses of $492,455 for the six months ended June 30, 2024, compared to $495,908 for the same period in 2023, reflecting a slight decrease of 0.3%[46] Shareholder Distributions - Distributions to stockholders from investment income-net for the six months ended June 30, 2024, totaled $(1,553,738)[8] - Distributions to stockholders from investment income-net amounted to $(3,107,474) for the six months ended June 30, 2024[9] - The company declared two quarterly distributions during the six months ended June 30, 2024, with the first on March 8, 2024, and the second on May 9, 2024[49] - The company declared a quarterly dividend of $0.25 per share on March 8, 2024, with a payment date of March 28, 2024, and issued 8 shares under the dividend reinvestment plan (DRIP) during this period[51] Investment Strategy and Portfolio - The company expanded its investment strategy to include companies outside the cannabis and health sectors effective April 22, 2024[14] - The company’s investment objective focuses on maximizing risk-adjusted returns through secured and unsecured debt investments, as well as equity investments in private leveraged middle-market cannabis companies[14] - The company’s investment portfolio is entirely located in the United States, as determined by the location of the portfolio companies' headquarters[13] - The company is currently reviewing approximately $560 million of potential investments in various stages of underwriting[75] - The company primarily seeks to invest in private leveraged middle-market companies with up to $100 million in EBITDA[75] Risk Management - The company reported a concentration risk due to its focus on investments in cannabis companies, which may lead to greater price volatility[38] - The company utilizes various risk management strategies to mitigate market risk, credit risk, and liquidity risk associated with its investments[38] - The company is exposed to prepayment risk, which may affect its yield if loans are prepaid due to favorable market conditions[38] Valuation and Fair Value - The fair value of investments is determined using various methodologies, including the discounted cash flow (DCF) method and market approach[17] - The company’s valuation process for investments includes a multi-step approach, with preliminary valuations documented and discussed by the Adviser's valuation committee[94] - As of June 30, 2024, 100% of the company's portfolio investments are categorized at Level 3, requiring significant estimates for fair value assessment[95] - The fair value of investments may fluctuate significantly due to the lack of readily available market values, impacting the overall valuation process[18] Market Conditions and Future Outlook - The company anticipates future operating results and distribution projections to be influenced by market conditions and regulatory changes in the cannabis industry[4] - The company is evaluating the potential effects of interest and inflation rates on its business prospects and those of its portfolio companies[4] - The company anticipates potential impacts from political tensions and economic conditions, including the Russia-Ukraine war and the Israel-Hamas war, which may introduce volatility in financial markets[39] Legal and Compliance - The company has no uncertain tax positions as of June 30, 2024, indicating a stable tax compliance status[27] - The company is not currently subject to any material legal proceedings, nor are any material legal proceedings threatened against it[108]

Financial Performance - Total investment income for Q1 2024 was $2.8 million, with total expenses of $2.9 million, resulting in a net investment loss of $(0.1) million or $(0.01) per share[2][5] - Total investment income for Q1 2024 was $2,760,247, up from $2,457,839 in Q1 2023, marking a year-over-year increase of approximately 12.3%[18] - Net investment income (loss) for Q1 2024 was $(79,809), a decrease from $1,370,723 in Q1 2023, showing a decline of approximately 105.8%[18] - The net increase in net assets resulting from operations for Q1 2024 was $519,811, down from $2,357,080 in Q1 2023, representing a decrease of about 77.9%[18] Asset and Liability Management - Total assets increased to $90,351,075 as of March 31, 2024, up from $88,576,271 on December 31, 2023, representing a growth of approximately 2.0%[17] - Total liabilities increased significantly to $5,832,308 as of March 31, 2024, compared to $3,023,653 at the end of 2023, indicating a rise of about 92.9%[17] - Cash and cash equivalents increased to $33,160,294 as of March 31, 2024, compared to $32,611,635 at the end of 2023, indicating a growth of about 1.7%[17] Investment Portfolio - The investment portfolio had a fair value of $54.8 million, consisting of $46.6 million in secured loans and $8.2 million in secured notes[8] - A net unrealized gain of $0.6 million was recorded during the quarter, primarily related to the fair valuation of debt investments[6] - There were no loans on non-accrual status as of March 31, 2024[8] Shareholder Returns - The company declared a cash dividend of $0.25 per share, payable on June 28, 2024, to stockholders of record on June 20, 2024[2][9] - Net asset value (NAV) per share decreased from $13.77 on December 31, 2023, to $13.60 on March 31, 2024, primarily due to dividend payments[7] - The net asset value per share decreased to $13.60 as of March 31, 2024, from $13.77 at the end of 2023, reflecting a decline of approximately 1.2%[17] Future Outlook - The company anticipates increased cannabis capital markets activity in the second half of 2024 due to potential regulatory changes[3] - The company expects to deploy capital to new portfolio companies with favorable risk/reward characteristics in the foreseeable future[3] - The company entered into an agreement to acquire a loan portfolio from Chicago Atlantic Loan Portfolio, LLC, in exchange for newly issued shares[4] Operational Expenses - Management fees for Q1 2024 were $246,131, slightly up from $238,419 in Q1 2023, showing an increase of approximately 3.0%[18] - Non-control/non-affiliate investment income rose to $2,726,497 for the three months ended March 31, 2024, compared to $2,457,839 for the same period in 2023, reflecting an increase of about 10.9%[18] Share Statistics - The weighted average shares outstanding for Q1 2024 were 6,214,941, compared to 6,214,672 in Q1 2023, reflecting a slight increase of about 0.4%[18]

Financial Performance - Total investment income for the three months ended March 31, 2024, was $2,760,247, an increase of 12.3% compared to $2,457,839 for the same period in 2023[7]. - Total expenses for the same period were $2,840,056, significantly higher than $1,087,116 in the prior year, reflecting a rise in transaction expenses related to the Loan Portfolio Acquisition[7]. - Net investment income (loss) for the quarter was $(79,809), a decrease from $1,370,723 in the previous year, indicating a substantial decline in profitability[7]. - The net increase in net assets resulting from operations was $519,811, down from $2,357,080 in the same quarter last year[7]. - The net investment income (loss) per share was $(0.01), compared to $0.22 for the same period in 2023, highlighting a significant drop in earnings per share[7]. - The net increase (decrease) in net assets resulting from operations per share was $0.08, down from $0.38 in the prior year[7]. - The company reported a net cash provided by operating activities of $2,103,079 for the three months ended March 31, 2024, compared to $(2,581,293) for the same period in 2023[9]. - The total net increase in net assets from capital transactions was $74 for the three months ended March 31, 2024[8]. - The company declared a quarterly dividend of $0.25 per share on March 8, 2024, resulting in total dividends paid of $1,553,662[51]. - The net asset value at the end of the period was $13.60 per share, down from $14.29 at the end of March 31, 2023[65]. Investment Portfolio - The fair value of the investment in Curaleaf Holdings, Inc. was reported at $4,208,000, representing 4.98% of net assets[10]. - The total portfolio investments and cash equivalents amounted to $86,763,000, which is 104.13% of net assets[13]. - As of March 31, 2024, total investments in debt securities amounted to $53,603,000, representing 64.90% of the company's net assets[14]. - The company holds cash equivalents of $33,160,000, which accounts for 39.23% of total assets[14]. - The aggregate fair value of non-qualifying assets is $25,291,000, or 28.0% of the company's total assets as of March 31, 2024[14]. - The fair value of investments is determined using a multi-step valuation process, with quarterly assessments conducted by the Adviser[23]. - The company’s investments are categorized entirely at level 3, indicating that 100% of the portfolio requires significant estimates for fair value measurement[102]. - The investment portfolio had an aggregate fair value of approximately $54.8 million, consisting of approximately $46.6 million in first lien, senior secured loans and approximately $8.2 million in senior secured notes[84]. - The geographic composition of the portfolio shows 46.7% in the West and 45.8% in the Midwest as of March 31, 2024[36]. - The entire portfolio is concentrated in the wholesale trade industry, representing 100% of the amortized cost and fair value as of both March 31, 2024, and December 31, 2023[87]. Transaction Expenses - The company incurred transaction expenses of $2,106,050 related to the Loan Portfolio Acquisition, which was not present in the prior year[7]. - Transaction expenses related to the Loan Portfolio Acquisition increased to $2,817,314 as of March 31, 2024, from $711,264 as of December 31, 2023[32]. - The Company incurred capital gains incentive fee expenses of $119,924 for the three months ended March 31, 2024[48]. Risk Management - The company manages various risks including market risk, credit risk, and liquidity risk, particularly in the cannabis sector[39]. - The company is subject to financial market risks, including valuation risk, interest rate risk, and credit risk[111]. - Credit risk is associated with the risk of default or non-performance by portfolio companies, which is equivalent to the investment's carrying amount[87]. Future Plans and Strategy - The company plans to acquire a loan portfolio from Chicago Atlantic Loan Portfolio, LLC, with the transaction expected to close in mid-2024[19]. - A joint venture with Chicago Atlantic BDC Holdings, LLC is set to be established, which will lead to a new investment advisory agreement[19]. - The company has expanded its investment strategy to include companies outside of the cannabis and health and wellness sectors effective April 22, 2024[19]. - The company aims to maximize risk-adjusted returns on equity for shareholders by investing primarily in secured and unsecured debt, equity warrants, and direct equity investments in privately held cannabis businesses[80]. - The company is currently reviewing approximately $425 million of potential investments in various stages of underwriting[25]. Shareholder Information - Weighted average shares outstanding for the quarter were 6,214,941, slightly up from 6,214,672 in the previous year[7]. - SSC holds approximately 72% of the Company's voting stock, allowing substantial control over corporate actions[48]. - The Company plans to hold a stockholder meeting to obtain approvals required for the Loan Portfolio Acquisition[72]. Tax and Compliance - The company intends to maintain its tax treatment as a RIC, requiring it to distribute at least 90% of its investment company taxable income[30]. - The company follows U.S. GAAP for financial reporting, requiring management to make estimates and assumptions that could materially affect reported amounts[99].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from______ to______ Commission file number: 001-40564 SILVER SPIKE INVESTMENT CORP. (Exact name of registrant as specified in its charter) Maryland 86-2872887 (State or ...

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 September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-40564 SILVER SPIKE INVESTMENT CORP. (Exact name of registrant as specified in its charter) Maryland 86-2872887 (State or other jurisdiction of incorporation ...

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 June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-40564 SILVER SPIKE INVESTMENT CORP. (Exact name of registrant as specified in its charter) Maryland 86-2872887 (State or other jurisdiction of incorporation or or ...