Stellus Capital Investment Corporation (NYSE:SCM) (“Stellus”, “we”, or the “Company”) today announced financial results for its fiscal quarter ended June 30, 2025.
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Robert T. Ladd, Chief Executive Officer of Stellus, stated, “I am pleased to report solid operating results for the quarter ended June 30, 2025, in which we earned U.S. GAAP net investment income of $0.34 per share and core net investment income of $0.35 per share. During the quarter, we funded $23 million of investments and received $32 million of repayments, resulting in a total portfolio of $986 million at fair value. We raised an additional $4 million of equity during the quarter under the at-the-market equity program. I'm also pleased to report that our investors have received a total of $306 million in distributions, equivalent to $17.35 per share, since we began operations.”
FINANCIAL HIGHLIGHTS ($ in millions, except data relating to per share amounts and shares outstanding)
Three Months Ended Six Months Ended June30,2025 June30,2024 June30,2025 June30,2024 Amount Per Share Amount Per Share Amount Per Share Amount Per ShareNet investment income $9.56 $0.34 $11.79 $0.48 $19.35 $0.69 $22.03 $0.90Core net investment income(1) 9.99 0.35 12.37 0.50 20.28 0.72 22.97 0.94Net realized (loss) gain on investments (0.86) (0.03) 1.99 0.07 (6.83) (0.24) (18.39) (0.75)Net realized loss on foreign currency translation (0.02) – (0.03) – (0.05) – (0.05) -Total realized income(2) $8.68 $0.31 $13.75 $0.55 $12.47 $0.45 $3.59 $0.15Distributions (11.36) (0.40) (10.05) (0.41) (22.45) (0.80) (19.70) (0.81)Net unrealized change in appreciation (depreciation) on investments 1.44 0.05 (5.58) (0.22) 2.63 0.09 17.92 0.73Net unrealized change in appreciation (depreciation) on foreign currency translation 0.03 – (0.01) – 0.04 – (0.01) -Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries – – 0.38 0.02 – – 0.19 0.01Net increase in net assets resulting from operations $10.15 $0.36 $8.54 $0.35 $15.14 $0.54 $21.69 $0.89Weighted average shares outstanding 28,412,849 24,733,966 28,009,969 24,429,804
(1) Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is anon-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.(2) Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures.
PORTFOLIO ACTIVITY ($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
As of As of June30,2025 December31,2024Investments at fair value $985.9 $953.5Total assets $1,034.8 $980.9Net assets $375.4 $369.9Shares outstanding 28,416,148 27,481,118Net asset value per share $13.21 $13.46 Three Months Ended Six Months Ended June30,2025 June30,2024 June30,2025 June30,2024New investments $22.8 $66.3 $78.2 $94.9Repayments of investments (31.6) (40.7) (46.6) (71.8)Net activity ($8.8) $25.6 $31.6 $23.1 As of As of June30,2025 December31,2024Number of portfolio company investments 112 105Number of debt investments 98 92Weighted average yield of debt and other income producing investments (3)Cash 9.3% 9.5%Payment-in-kind (“PIK”) 0.5% 0.4%Fee amortization 0.4% 0.4%Total 10.2% 10.3%Weighted average yield of total investments(4)Cash 8.7% 8.9%PIK 0.5% 0.4%Fee amortization 0.4% 0.4%Total 9.6% 9.7%
(3) The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors.(4) The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status.
Results of Operations
Investment income for the three months ended June30,2025 and 2024 totaled $25.7 million and $26.6 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended June30,2025 and 2024 totaled $17.1 million and $16.5 million, respectively. For the same respective periods, base management fees totaled $4.3 million and $3.9 million, income incentive fees totaled $2.2 million and $2.6 million, fees and expenses related to our borrowings totaled $8.7 million and $8.1 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million and $0.5 million, income tax totaled $0.4 million and $0.6 million and other expenses totaled $1.0 million and $0.8 million. The Company waived $1.0 million and $1.7 million of income incentive fees due to the total return limitation contained in the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended June 30, 2025 and 2024, respectively, for net operating expenses of $16.1 million and $14.8 million, respectively.
Net investment income was $9.6 million and $11.8 million, or $0.34 and $0.48 per common share based on 28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June30,2025 and 2024, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended June30,2025 and 2024 was $10.0 million and $12.4 million, or $0.35 and $0.50 per share, respectively.
For the three months ended June30,2025 and 2024, the Company's investment portfolio had a net change in unrealized appreciation (depreciation) of $1.4 million and ($5.6) million, respectively, and the Company had net realized (losses) gains of ($0.9) million and $2.0 million, respectively.
Net increase in net assets resulting from operations totaled $10.1 million and $8.5 million, or $0.36 and $0.35 per common share, based on 28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June30,2025 and 2024, respectively.
Liquidity and Capital Resources
As of June 30, 2025, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the “Credit Facility”) provided for borrowings in an aggregate amount of up to $315.0 million on a committed basis. As of June 30, 2025 and December 31, 2024, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $350.0 million.
As of June 30, 2025 and December 31, 2024, the Company had $163.1 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively.
The Company issued 278,945 shares during the three months ended June30,2025 under the at-the-market program (“ATM Program”) for gross proceeds of $3.9 million. The average per share offering price of shares issued under the ATM Program during the three months ended June30,2025 was $13.97. Stellus Capital Management, LLC, the Company's investment adviser (the “Advisor”), has agreed to reimburse the Company for underwriting fees to the extent the per share price of the shares to the public, less underwriting fees, was less than net asset value per share.
Distributions
For both the three months ended June30,2025 and 2024, the Company declared aggregate distributions of $0.40 per share for both periods ($11.4 million and $10.0 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies during the three months ended June30,2025:
Activity Type Date Company Name Company Description Investment Amount Instrument TypeAdd-On Investment April 8, 2025 TriplePoint Acquisition Holdings LLC* Provider of HVAC, plumbing, and other mechanical and industrial services $ 1,773,809 Senior Secured - First LienAdd-On Investment April 25, 2025 Elliott Aviation, LLC* Provider of maintenance, repair, and overhaul and fixed-base operator services to the business aviation sector $ 57,899 Senior Secured - First Lien $ 105 EquityNew Investment April 30, 2025 Gourmet Specialty Foods, LLC Provider of ready-to-cook value-added proteins to grocery retailers $ 4,270,705 Senior Secured - First Lien $ 2,847,136 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 240,595 EquityAdd-On Investment May 5, 2025 FairWave Holdings, LLC* Specialty coffee platform $ 19,336 EquityAdd-On Investment May 8, 2025 Unicat Catalyst Holdings, LLC* Manufacturer and distributor of catalysts and other industrial products $ 13,961 EquityAdd-On Investment May 21, 2025 The Hardenbergh Group, Inc. * Provider of temporary professional staffing of medical services professionals, external peer review, consulting and physician leadership solutions $ 243,044 EquityAdd-On Investment May 30, 2025 WER Holdings, LLC* Regional provider of commercial landscaping services $ 426,885 Senior Secured - First Lien $ 2,366,945 Delayed Draw Term Loan CommitmentNew Investment June 3, 2025 International Cybernetics Company, LP Provider of road condition assessment services and equipment' $ 4,748,003 Senior Secured - First Lien $ 3,561,003 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 105,113 EquityAdd-On Investment June 4, 2025 Eskola LLC* Provider of commercial re-roofing services $ 56,349 EquityNew Investment June 6, 2025 Solid Surface Care Holdings, Inc. National commercial surface care and restoration company $ 5,694,273 Senior Secured - First Lien $ 4,270,705 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 377,437 EquityAdd-On Investment June 27, 2025 Monitorus Holding, LLC* Provider of media monitoring and evaluation services $ 1,722,767 Senior Secured - First Lien
________________________________*Existing portfolio company
The Company realized investments in the following portfolio companies during the three months ended June30,2025:
Activity Type Date Company Name Company Description Proceeds Received Realized Gain (Loss) Instrument TypeFull Repayment April 8, 2025 Florachem Corporation Distiller and supplier of natural citrus, pine, and specialty inputs $ 9,725,000 $ – Senior Secured - First Lien $ 53,078 $ – Delayed Draw Term Loan Commitment $ 100,000 $ – Revolver CommitmentFull Realization $ 514,107 $ 151,674 EquityRestructured Investment April 9, 2025 J.R. Watkins, LLC Manufacturer and distributor of home and personal care products $ – $ (1,132,576) EquityFull Repayment May 29, 2025 Anne Lewis Strategies, LLC Provider of tech-enabled donor targeting and strategic digital fundraising services for non-profit and political organizations. $ 11,801,341 $ – Senior Secured - First Lien
________________________________*Existing portfolio company
Events Subsequent to June 30, 2025
The Company's management has evaluated subsequent events through August 6, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to June 30, 2025:
Activity Type Date Company Name Company Description Investment Amount Instrument TypeAdd-On Investment July 1, 2025 Bart & Associates, LLC* Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry $ 303,740 EquityAdd-On Investment July 28, 2025 Equine Network, LLC* Hosts competitions and provides services for the U.S. equine industry $ 2,067,538 Senior Secured - First LienNew Investment July 31, 2025 The Millennium Alliance, LLC Facilitator of peer-to-peer events connecting companies with technology solution providers $ 11,500,000 Senior Secured - First Lien $ 100,000 Revolver Commitment $ 515,556 EquityNew Investment July 31, 2025 Project EC** Provider of homecare services $ 7,785,007 Senior Secured - First Lien $ 2,500,000 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 910,966 EquityAdd-On Investment May 5, 2025 MedLearning Group, LLC* Provider of continuing medical education services $ 2,981,213 Senior Secured - First Lien
________________________________*Existing portfolio company** The name of this portfolio company is not disclosed at this time due to confidentiality restrictions. The name of this portfolio company will be disclosed in the Company's quarterly report for the quarter ending September 30, 2025.
The Company realized investments in the following portfolio companies subsequent to June 30, 2025:
Activity Type Date Company Name Company Description Proceeds Received Instrument TypeFull Repayment July 31, 2025 Rogers Mechanical Contractors, LLC HVAC and plumbing designer, installer, and service provider for new/existing data centers, fulfilment sortation facilities, and warehouses $ 8,272,652 Senior Secured - First Lien
Credit Facility
The outstanding balance under the Credit Facility as of August 6, 2025 was $162.2 million.
Distributions Declared
On July 2, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of July 2025, August 2025, and September 2025 as follows:
Ex-Dividend Record Payment AmountperDeclared Date Date Date Share7/2/2025 7/31/2025 7/31/2025 8/15/2025 $ 0.13337/2/2025 8/29/2025 8/29/2025 9/15/2025 $ 0.13337/2/2025 9/30/2025 9/30/2025 10/15/2025 $ 0.1333
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Thursday, August 7, 2025 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.
For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 398771. Starting approximately two hours after the conclusion of the call, a replay will be available through Thursday, August 21, 2025 by dialing (877) 481-4010 and entering passcode 52804. The replay will also be available on the Company's website.
For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.
About Stellus Capital Investment Corporation
The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the “Public (SCIC)” tab.
Forward-Looking Statements
Statements included herein may contain “forward-looking statements” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Stellus Capital Investment Corporation W. Todd Huskinson, Chief Financial Officer (713) 292-5414 thuskinson@stelluscapital.com
STELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES June30,2025 (unaudited) December31,2024ASSETSControlled investments at fair value (amortized cost of $32,732,016 and $17,934,808, respectively) $ 13,046,041 $ 7,652,436Non-controlled, non-affiliated investments, at fair value (amortized cost of $957,687,672 and $943,853,898, respectively) 972,839,633 945,845,252Cash and cash equivalents 39,991,690 20,058,594Receivable for sales and repayments of investments 399,106 335,689Interest receivable 5,869,109 4,947,765Income tax receivable 2,045,697 1,301,965Other receivables 17,500 87,995Related party receivable – 3,687Deferred offering costs 109,059 -Prepaid expenses 447,891 666,866Total Assets $ 1,034,765,726 $ 980,900,249LIABILITIESNotes Payable $ 172,310,201 $ 99,444,355Credit Facility payable 160,622,440 172,314,315SBA-guaranteed debentures 305,373,199 321,251,939Dividends payable 3,787,873 3,663,233Management fees payable 4,279,441 4,034,109Income incentive fees payable 2,052,194 3,109,560Interest payable 6,529,422 5,281,343Related party payable 1,088,287 -Unearned revenue 676,290 548,626Administrative services payable 415,810 393,513Other accrued expenses and liabilities 2,259,679 937,316Total Liabilities $ 659,394,836 $ 610,978,309Commitments and contingencies (Note 7)Net Assets $ 375,370,890 $ 369,921,940NET ASSETSCommon stock, par value $0.001 per share (100,000,000 shares authorized; 28,416,148 and 27,481,118 shares issued and outstanding, respectively) $ 28,416 $ 27,481Paid-in capital 392,309,339 379,549,272Total distributable loss (16,966,865) (9,654,813)Net Assets $ 375,370,890 $ 369,921,940Total Liabilities and Net Assets $ 1,034,765,726 $ 980,900,249Net Asset Value Per Share $ 13.21 $ 13.46
STELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the three months ended For the six months ended June30,2025 June30,2024 June30,2025 June30,2024INVESTMENT INCOMEFrom controlled investments:Interest income $ – $ – $ – $ 81,636From non-controlled, non-affiliated investmentsInterest income 24,654,205 25,164,944 48,781,321 50,121,795Other income 1,042,397 1,461,255 1,866,939 2,419,517Total Investment Income $ 25,696,602 $ 26,626,199 $ 50,648,260 $ 52,622,948OPERATING EXPENSESManagement fees $ 4,279,441 $ 3,852,233 $ 8,334,167 $ 7,704,466Valuation fees 38,507 35,711 196,396 192,218Administrative services expenses 474,284 481,261 923,582 972,162Income incentive fees 2,158,075 2,542,530 4,294,566 5,051,640Professional fees 312,808 196,205 730,839 535,832Directors' fees 93,250 114,250 204,500 222,500Insurance expense 98,668 125,489 195,758 250,478Interest expense and other fees 8,680,015 8,116,497 16,943,034 15,884,070Income tax expense 428,951 574,037 928,498 944,756Other general and administrative expenses 500,302 417,867 718,653 663,142Total Operating Expenses $ 17,064,301 $ 16,456,080 $ 33,469,993 $ 32,421,264Income incentive fee waiver (928,926) (1,622,542) (2,171,769) (1,826,893)Total Operating Expenses, net of fee waivers $ 16,135,375 $ 14,833,538 $ 31,298,224 $ 30,594,371Net Investment Income $ 9,561,227 $ 11,792,661 $ 19,350,036 $ 22,028,577Net realized loss on controlled investments $ (1,132,576) $ – $ (1,132,576) $ -Net realized gain (loss) on non-controlled, non-affiliated investments 272,549 1,992,482 (5,694,672) $ (18,392,249)Net realized loss on foreign currency translations (20,003) (29,789) (49,658) (54,895)Net change in unrealized appreciation on controlled investments 1,290,491 138,189 1,345,767 674,759Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments 143,176 (5,724,870) 1,281,193 17,257,150Net change in unrealized appreciation (depreciation) on foreign currency translations 30,546 (5,887) 38,865 (9,489)Benefit for taxes on net unrealized depreciation on investments – 381,500 – 188,893Net Increase in Net Assets Resulting from Operations $ 10,145,410 $ 8,544,286 $ 15,138,955 $ 21,692,746Net Investment Income Per Share-basic and diluted $ 0.34 $ 0.48 $ 0.69 $ 0.90Net Increase in Net Assets Resulting from Operations Per Share - basic and diluted $ 0.36 $ 0.35 $ 0.54 $ 0.89Weighted Average Shares of Common Stock Outstanding-basic and diluted 28,412,849 24,733,966 28,009,969 24,429,804Distributions Per Share-basic and diluted $ 0.40 $ 0.41 $ 0.80 $ 0.81
STELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited) CommonStock Total Number Par Paid-in distributable ofshares value capital (loss) NetAssetsBalances at December31,2023 24,125,642 $ 24,125 $ 335,918,984 $ (16,003,321) $ 319,939,788Net investment income – – – 10,235,916 10,235,916Net realized loss on investments – – – (20,384,731) (20,384,731)Net realized loss on foreign currency translations – – – (25,106) (25,106)Net change in unrealized appreciation on investments – – – 23,518,590 23,518,590Net change in unrealized depreciation on foreign currency translations – – – (3,602) (3,602)Provision for taxes on unrealized appreciation on investments – – – (192,607) (192,607)Distributions from net investment income – – – (9,647,844) (9,647,844)Balances at March 31,2024 24,125,642 $ 24,125 $ 335,918,984 $ (12,502,705) $ 323,440,404Net investment income – – – 11,792,661 11,792,661Net realized gain on investments – – – 1,992,482 1,992,482Net realized loss on foreign currency translations – – – (29,789) (29,789)Net change in unrealized depreciation on investments – – – (5,586,681) (5,586,681)Net change in unrealized depreciation on foreign currency translations – – – (5,887) (5,887)Benefit for taxes on unrealized depreciation on investments – – – 381,500 381,500Distributions from net investment income – – – (10,049,073) (10,049,073)Issuance of common stock, net of offering costs(1) 1,855,356 1,856 25,248,020 – 25,249,876Balances at June30,2024 25,980,998 $ 25,981 $ 361,167,004 $ (14,007,492) $ 347,185,493Balances at December31,2024 27,481,118 $ 27,481 $ 379,549,272 $ (9,654,813) $ 369,921,940Net investment income – – – 9,788,809 9,788,809Net realized loss on investments – – – (5,967,221) (5,967,221)Net realized loss on foreign currency translations – – – (29,655) (29,655)Net change in unrealized appreciation on investments – – – 1,193,293 1,193,293Net change in unrealized depreciation on foreign currency translations – – – 8,319 8,319Distributions from net investment income – – – (11,087,389) (11,087,389)Issuance of common stock, net of offering costs(1) 656,085 656 8,937,430 – 8,938,086Balances at March 31,2025 28,137,203 $ 28,137 $ 388,486,702 $ (15,748,657) $ 372,766,182Net investment income – – – 9,561,227 9,561,227Net realized loss on investments – – – (860,027) (860,027)Net realized loss on foreign currency translations – – – (20,003) (20,003)Net change in unrealized appreciation on investments – – – 1,433,667 1,433,667Net change in unrealized appreciation on foreign currency translations – – – 30,546 30,546Distributions from net investment income – – – (11,363,618) (11,363,618)Issuance of common stock, net of offering costs(1) 278,945 279 3,822,637 – 3,822,916Balances at June 30,2025 28,416,148 $ 28,416 $ 392,309,339 $ (16,966,865) $ 375,370,890
STELLUS CAPITAL INVESTMENT CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the six months ended June30,2025 June30,2024Cash Flows from Operating ActivitiesNet increase in net assets resulting from operations $ 15,138,955 $ 21,692,746Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:Purchases of investments (78,230,159) (94,854,139)Proceeds from sales and repayments of investments 46,638,287 71,824,905Net change in unrealized appreciation on investments (2,626,960) (17,931,909)Net change in unrealized (appreciation) depreciation on foreign currency translations (38,865) 9,490Increase in investments due to PIK (2,492,551) (1,555,868)Amortization of premium and accretion of discount, net (1,437,223) (1,383,624)Deferred tax benefit – (188,893)Amortization of loan structure fees 634,745 544,379Amortization of deferred financing costs 303,468 222,747Amortization of discount on Notes Payable 31,434 -Amortization of loan fees on SBA-guaranteed debentures 371,260 550,059Net realized loss on investments 6,827,248 18,392,249Changes in other assets and liabilitiesIncrease in interest receivable (921,344) (2,780,809)Increase in income tax receivable (743,732) (585,741)Decrease (increase) in other receivables 70,495 (92,671)Decrease in related party receivables 3,687 -Decrease in prepaid expenses 218,975 193,937Increase (decrease) in management fees payable 245,332 (2,066,303)Decrease in income incentive fees payable (1,057,366) (1,450,096)Increase in administrative services payable 22,297 24,023Increase in interest payable 1,248,079 7,256Increase in related party payable 1,088,287 337,500Increase in unearned revenue 127,664 174,518Increase in other accrued expenses and liabilities 1,322,363 268,894Net Cash Used in Operating Activities $ (13,255,624) $ (8,647,350)Cash Flows from Financing ActivitiesProceeds from the issuance of common stock $ 13,153,366 $ 25,777,185Sales load for common stock issued (197,464) (386,987)Offering costs paid for common stock issued (303,959) (133,010)Stockholder distributions paid (22,326,367) (16,233,650)Proceeds from issuance of Notes Payable 75,000,000 -Discount from issuance of Notes Payable (770,250) -Financing costs paid on Notes Payable (1,698,806) -Repayments of SBA-guaranteed debentures (16,250,000) -Financing costs paid on Credit Facility – (66,348)Borrowings under Credit Facility 104,400,000 104,400,000Repayments of Credit Facility (117,817,800) (94,967,800)Net Cash Provided by Financing Activities $ 33,188,720 $ 18,389,390Net Increase in Cash and Cash Equivalents $ 19,933,096 $ 9,742,040Cash and Cash Equivalents Balance at Beginning of Period $ 20,058,594 $ 26,125,741Cash and Cash Equivalents Balance at End of Period $ 39,991,690 $ 35,867,781Supplemental and Non-Cash ActivitiesCash paid for interest expense $ 14,354,048 $ 14,559,629Income and excise tax paid 1,672,230 1,530,497Increase in distributions payable 124,640 3,463,267Increase (decrease) in deferred offering costs 109,059 (7,312)Exchange of investments 1,663,301 8,256,411
Reconciliation of Core Net Investment Income(1)(Unaudited) Three Months Ended Six Months Ended June30,2025 June30,2024 June30,2025 June30,2024Net investment income $9,561,227 $11,792,661 $19,350,036 $22,028,577Income tax expense 428,951 574,037 928,498 944,756Core net investment income $9,990,178 $12,366,698 $20,278,534 $22,973,333Per share amounts:Net investment income per share $0.34 $0.48 $0.69 $0.90Core net investment income per share $0.35 $0.50 $0.72 $0.94
Reconciliation of Realized Net Investment Income(2)(Unaudited) Three Months Ended Six Months Ended June30,2025 June30,2024 June30,2025 June30,2024Net investment income $9,561,227 $11,792,661 $19,350,036 $22,028,577Net realized loss on investments (860,027) 1,992,482 (6,827,248) (18,392,249)Net realized loss on foreign currency translation (20,003) (29,789) (49,658) (54,895)Total realized net investment income $8,681,197 $13,755,354 $12,473,130 $3,581,433Per share amounts:Net investment income per share $0.34 $0.48 $0.69 $0.90Realized net investment income per share $0.31 $0.55 $0.45 $0.15
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SOURCE Stellus Capital Investment Corporation
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