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]

Financial Performance - For the three months ended March 31, 2025, total investment income was $11,923,002, a significant increase from $2,760,247 for the same period in 2024, representing a growth of approximately 332%[13] - Net investment income for the three months ended March 31, 2025, was $7,648,421, compared to a net loss of $79,809 for the same period in 2024, indicating a turnaround in performance[13] - The net increase in net assets resulting from operations for the three months ended March 31, 2025, was $7,614,357, compared to $519,811 for the same period in 2024, showing a substantial improvement[13] - The net investment income per share for the three months ended March 31, 2025, was $0.34, compared to a loss of $0.01 per share for the same period in 2024[13] - The weighted average shares outstanding for the three months ended March 31, 2025, were 22,820,386, compared to 6,214,941 for the same period in 2024, indicating a significant increase in shares[13] Expenses and Cash Flow - Total expenses for the three months ended March 31, 2025, were $5,249,058, up from $2,840,056 in the same period in 2024, reflecting an increase of approximately 84%[13] - The net cash provided by (used in) operating activities was $(7,264,322) for the current period, a decrease from $2,103,079 in the prior year[20] - Cash and cash equivalents at the end of the period were $14,921,739, down from $33,160,294 at the end of March 31, 2024, reflecting a decrease of approximately 55.1%[20] - The company incurred offering costs of $989,645 during the current period, compared to $756 in the previous year, indicating increased financing activities[20] - The net cash used in financing activities was $(1,746,345), compared to $(1,554,420) in the prior year, showing a slight increase in cash outflow[20] Investment Portfolio - Total investments amount to $288,403,000, with a fair value of $289,264,000, representing 96.1% of net assets[24] - Total Cannabis investments amount to $210,854 million, representing 70.2% of net assets[23] - The company holds equity investments valued at $743,000, with a fair value of $688,000, accounting for 0.2% of total assets[24] - The total fair value of cannabis-related investments is $202.67 million, with a par value of $203.45 million[34] - The total amount of first lien senior secured U.S. debt is $240,063 million, which is 80.0% of net assets[23] Risks and Future Outlook - The company has identified various risks that could impact future performance, including changes in regulation affecting the cannabis industry and potential economic disruptions[8] - The company anticipates continued growth in investment income and is focused on expanding its portfolio and operational capabilities[7] - The company faces significant risks related to interest rate fluctuations, which could materially affect net investment income[112] - The company manages various risks, including market risk and credit risk, through diversified exposures and control mechanisms[102] Shareholder Distributions - The Company declared a quarterly dividend of $0.34 per share on March 14, 2025, totaling $7,758,931, compared to a dividend of $0.25 per share totaling $1,553,736 declared on March 8, 2024[155] - The total distributions for the tax year ended March 31, 2025, were $18,625,335, compared to $9,819,273 for the tax year ended March 31, 2024, indicating a substantial increase[173] 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 annually[78] - The Company evaluates tax positions and has no uncertain tax positions as of March 31, 2025, indicating a stable tax compliance status[82] - As of March 31, 2025, the Company had $0 in accrued excise taxes, down from $88,709 as of December 31, 2024, indicating improved tax management[79] Valuation and Fair Value - The company utilizes significant unobservable inputs for valuing securities, categorized as Level 3 assets[25] - The company has adopted a multi-step valuation process for its investments, which includes establishing preliminary valuations based on independent third-party valuations[65] - The fair value of First Lien Senior Secured Loans increased from $239,860,206 as of December 31, 2024, reflecting a net change in unrealized appreciation of $74,055[122] Management and Governance - The Adviser waived approximately $658,477 of general and administrative expenses for the three months ended March 31, 2025, which will not be subject to future reimbursement[144] - The Company had co-investments with affiliates amounting to $245,658,531 as of March 31, 2025, down from $272,816,695 as of December 31, 2024[148] - The Expense Limitation Agreement caps the Company's operating expenses at an annualized rate of 2.15% of net assets through September 30, 2025[136]

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]. Dividend Announcement - 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]. Company Classification and Strategy - The company is classified as an emerging growth company under the Securities Act[2]. - The company has a focus on sustainable and scalable trading solutions as part of its strategic vision[8].

Company Overview - 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]. - The company has been renamed "Chicago Atlantic BDC, Inc." with a new ticker symbol "LIEN" effective October 2, 2024[29]. - 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]. - The company is classified as an emerging growth company and expects to remain so for up to five years or until certain revenue or market value thresholds are met[191][192]. - The company is regulated as a Business Development Company (BDC) under the 1940 Act, which imposes restrictions on transactions with affiliates and requires a majority of independent directors[195][196]. Investment Strategy - The company has an active pipeline of investments, currently reviewing approximately $644 million in potential investments[35]. - The company has expanded its investment strategy to include companies outside the cannabis and health and wellness sectors, effective April 22, 2024[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 strategy includes secured debt, unsecured debt, equity warrants, and direct equity investments[32]. - Chicago Atlantic's investment strategies focus on opportunistic private credit and equity, particularly in esoteric industries and specialty asset-based loans[48]. - The investment strategy includes generating current income from debt investments and capital appreciation from equity-related investments[75]. Market Conditions - The U.S. state-legal cannabis retail sales are estimated to reach $32 billion in 2024 and approximately $58 billion by 2030, indicating significant growth potential in the cannabis market[52]. - In 2024, the capital raising environment for private credit finished with $209 billion in final closes, a 5% increase over 2023, highlighting strong momentum in the market[62]. - The cannabis industry has seen a significant reliance on debt financing, with debt capital increasing as a percentage of total capital raised, reflecting a shift from equity funding[56]. - In 2024, public and private cannabis equity raised only $0.5 billion while debt raised increased to $1.2 billion, showing a growing preference for debt solutions[58]. - The number of cannabis mergers and acquisitions decreased to 45 in 2024, down from 67 in 2023, indicating a potential slowdown in market activity[59]. - Chicago Atlantic expects demand for credit-based solutions to increase as companies prefer less dilutive forms of growth capital amid a scarcity of equity capital[61]. - The lower middle-market and certain parts of the middle-market are expected to provide better risk-adjusted return potential due to reduced competition from banks and large funds[64]. - The cannabis industry remains fragmented and subject to complex regulations, creating significant barriers to entry for new businesses[52]. 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-related and non-cannabis industries, enhancing the company's ability to evaluate investment opportunities[76]. - 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, with oversight from the Board of Directors, and utilizes independent third-party valuation firms when necessary[111][112]. - The Adviser provides administrative services, including maintaining financial records and preparing reports to stockholders[170]. Investment Process - The investment process involves a multi-channel sourcing strategy, focusing on strong management teams and direct negotiations with potential portfolio companies[89]. - The company employs a rigorous due diligence process, including preliminary and confirmatory due diligence phases before final investment approval[92][93]. - Investment criteria include targeting businesses with durable competitive advantages and consistent operational performance[87]. - The investment rating system is used to monitor the credit profile and expected returns on each investment, with a five-level numeric rating scale[104]. Financial Management - The company has entered into an Expense Limitation Agreement, capping operating expenses at an annualized rate of 2.15% of net assets through September 30, 2025[26]. - 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’s liabilities include accrued management fees and incentive fees based on realized capital gains, affecting the NAV calculation[118]. Compliance and Ethics - The company has a formal code of ethics governing the conduct of its officers and directors[182]. - The investment allocation policy aims to manage conflicts of interest in allocating investment opportunities among funds managed by the Company and its affiliates[178][180]. - 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].

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 an aggregate 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, compared to $54,120,000 on December 31, 2023, indicating an increase in portfolio value[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]. - The geographic distribution of the portfolio as of September 30, 2024, showed 43.8% in the West and 42.7% in the Midwest[91]. - The company had no loans in the portfolio placed on non-accrual status as of September 30, 2024, and December 31, 2023, indicating stable credit performance[97]. - The company’s investments may not have readily available market quotations, leading to potential fluctuations in fair value assessments[121]. - 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 focuses on investing in the cannabis industry, with a strategy to partner with private equity firms and entrepreneurs to provide credit and equity financing alternatives[83]. - The investment strategy includes four primary sub-strategies: Cannabis, Growth Capital & Technology, Esoteric & Asset-Based Lending, and Liquidity Solutions[85]. - 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 expects to invest in loans primarily to private leveraged lower middle-market and middle-market companies[82]. - 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]. - The Company expanded its investment strategy to include investments 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, up from $2.9 million in the same period of 2023, reflecting a growth of about 8.9%[98]. - The company reported a total interest income of $2,686,771 for the three months ended September 30, 2024, compared to $2,885,725 for the same period in 2023, showing a decrease of approximately 6.9%[98]. - The company generated fee income of $489,176 for the three months ended September 30, 2024, significantly higher than $31,250 in the same period of 2023, indicating improved fee generation capabilities[98]. - Total operating expenses for the nine months ended September 30, 2024, were $7,557,191, representing a 123% increase compared to $3,381,392 for the same period in 2023[99]. - 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, primarily due to transaction fees of $2.4 million related to the Loan Portfolio Acquisition[99]. - The net change in unrealized appreciation on investments for the nine months ended September 30, 2024, was $187,324, compared to $166,012 in the same period of 2023, reflecting a positive trend[94]. - The company reported a gross unrealized appreciation of $282,329 and gross unrealized depreciation of $(95,005) for the nine months ended September 30, 2024[100]. Expenses and Fees - The company expects general and administrative expenses to increase in dollar terms during periods of asset growth but decline as a percentage of total assets during such periods[87]. - Management fees decreased by 2% to $745,876 for the nine months ended September 30, 2024, compared to $760,473 in the same period of 2023[99]. - Income-based incentive fees saw a significant decline of 69%, totaling $328,503 for the nine months ended September 30, 2024, down from $1,051,741 in 2023[99]. - Legal expenses decreased by 40% to $200,073 for the nine months ended September 30, 2024, compared to $334,308 in the same period of 2023[99]. - The Company entered into a new expense limitation agreement, capping operating expenses at an annualized rate of 2.15% of net assets through September 30, 2025[117]. Liquidity and Capital Structure - Cash resources as of September 30, 2024, were approximately $30.1 million, down from $32.6 million as of December 31, 2023, with no indebtedness reported[101]. - The company maintains adequate liquidity to fund its unfunded commitments through existing cash and cash equivalents[108]. - The company’s shares have traded at prices both above and below the net asset value per share, indicating potential market volatility[110]. - The company intends to pay quarterly distributions to stockholders, subject to the discretion of the Board of Directors and dependent on various financial factors[110]. - 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 Risk Factors - The Company is subject to financial market risks, including valuation risk, interest rate risk, and credit risk due to global political tensions[120]. - 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 an increase of $1,264 in net income[124]. - A 200 basis points increase in interest rates would lead to an increase of $843 in net income for the same period[124]. - A 100 basis points increase in interest rates would result in an increase of $421 in net income[124]. - A 100 basis points decrease in interest rates would lead to a decrease of $400 in net income[124]. Corporate Governance and Changes - The Company has undergone a leadership change, with Andreas Bodmeier becoming CEO and Umesh Mahajan serving as Co-Chief Investment Officer[117]. - The Company has been renamed "Chicago Atlantic BDC, Inc." with a new ticker symbol "LIEN," effective October 2, 2024[119]. - The effectiveness of the company's disclosure controls and procedures was confirmed as of the end of the reporting period[126]. - The company reported no changes in internal control over financial reporting that materially affected its operations during the three months ended September 30, 2024[127]. - The company is not currently subject to any material legal proceedings that could materially affect its financial condition[128]. Shareholder and Investment Activities - The Company issued 16,605,372 shares of common stock to Chicago Atlantic Loan Portfolio, LLC in exchange for a Loan Portfolio valued at $219,621,125 as of September 28, 2024[114]. - The Company did not repurchase any equity securities during the nine months ended September 30, 2024[114]. - The Company has adopted an "opt out" dividend reinvestment plan (DRIP), issuing shares under this plan during the nine months ended September 30, 2023, with a total of 33 shares issued[115]. - The company has outstanding commitments to fund investments totaling $1.5 million as of September 30, 2024, with no unfunded commitments identified as of December 31, 2023[108].

Core Points - Silver Spike Investment Corp. (SSIC) has received stockholder approval for the acquisition of a loan portfolio from Chicago Atlantic Loan Portfolio, LLC (CALP) in exchange for newly-issued shares of common stock [1] - The company will also undergo a name change to "Chicago Atlantic BDC, Inc." and its ticker symbol will change to "LIEN" following the acquisition [3] Summary by Sections Acquisition Details - The acquisition involves a portfolio of loans from CALP, which is expected to close as soon as possible, subject to closing conditions [3] - The acquisition is part of the company's strategy to leverage increased scale for investing in cannabis and middle-market companies [3] Board and Advisory Agreement - Stockholders approved the election of Frederick C. Herbst, John Mazarakis, and Jason Papastavrou to the board of directors for terms ending in 2025, 2026, and 2027 respectively [2] - A new investment advisory agreement with Silver Spike Capital, LLC (SSC) was also approved, maintaining the same management and incentive fee structure as the current agreement [2] Company Overview - SSIC is a specialty finance company regulated as a business development company, focusing on maximizing risk-adjusted returns through direct loans to privately held middle-market companies, particularly in the cannabis and health and wellness sectors [4]

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[14]. - 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%[14]. - Total assets increased to $90,076,727 as of June 30, 2024, up from $88,576,271 at the end of 2023, representing a growth of 1.7%[13]. - As of June 30, 2024, total net assets were $84.3 million, down from $84.5 million as of March 31, 2024[5]. - Cash and cash equivalents increased to $34,003,851 as of June 30, 2024, compared to $32,611,635 at the end of 2023, a rise of 4.2%[13]. 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][10]. - 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[5]. - The net asset value per share decreased to $13.56 as of June 30, 2024, down from $13.77 at the end of 2023, a decline of 1.5%[13]. Expenses and Financial Performance - Total expenses for the three months ended June 30, 2024, were $1,555,700, an increase of 56.5% from $994,287 in the same period last year[14]. - The company reported a transaction expense of $533,019 related to the Loan Portfolio Acquisition for the three months ended June 30, 2024[14]. - The company incurred income-based incentive fees of $328,503 for the three months ended June 30, 2024, down from $442,673 in the same period last year, a decrease of 25.8%[14]. - 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%[14]. Portfolio and Strategic Initiatives - 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[6]. - The company added one portfolio company during Q2 2024 and made an additional investment on July 16, 2024[6]. - The company is well-positioned to take advantage of increased debt capital markets activity in the cannabis sector[3]. - The company has filed a registration statement for the Loan Portfolio Acquisition with the SEC, indicating ongoing strategic expansion efforts[3][11]. - The company recorded a net unrealized loss of $0.2 million during Q2 2024, mainly related to the fair valuation of debt investments[4].

NEW YORK, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Silver Spike Investment Corp. ("SSIC" or the "Company") (NASDAQ: SSIC), a specialty finance company that has elected to be regulated as a business development company, today announced its financial results for the second quarter ended June 30, 2024. Quarter Ended 6/30/24 Highlights Total investment income of $3.1 million Net investment income of $1.5 million, or $0.25 per share Investment portfolio of $53.4 million at fair value Net asset value ("NAV") per share d ...

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, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-40564 | --- | --- | --- | |----------------------------------------------------------------------------------------|---------------------------------------------- ...