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COMMITMENTS AND CONTINGENCIES | 6 Months Ended
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Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk, consisting primarily of unused commitments to extend financing to the Company’s portfolio companies. Because commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Additionally, our commitment to fund delayed draw term loans generally is triggered upon the satisfaction of certain pre-negotiated terms and conditions, such as meeting certain financial performance hurdles or financial covenants, which may limit a borrower's ability to draw on such delayed draw term loans. The balances of unfunded debt commitments as of September 30, 2023 and March 31, 2023 were as follows (amounts in thousands):
|  | September 30, |  | March 31,
Portfolio Company |  | 2023 |  | 2023
Revolving Loans |  |  |  |
Acacia BuyerCo V LLC |  | $ | 2,000 |  |  | $ | 2,000 |
Acceleration, LLC |  | 2,800 |  |  | 1,300 |
Air Conditioning Specialist, Inc. |  | 175 |  |  | 1,200 |
American Teleconferencing Services, Ltd. |  | — |  |  | 154 |
ArborWorks, LLC |  | — |  |  | 1,000 |
ATS Operating, LLC |  | 1,500 |  |  | 2,000 |
Bond Brand Loyalty ULC |  | 2,000 |  |  | — |
Catbird NYC, LLC |  | 2,500 |  |  | 4,000 |
Cavalier Buyer, Inc. |  | 2,000 |  |  | 2,000 |
Central Medical Supply LLC |  | 1,200 |  |  | 1,200 |
Damotech Inc. |  | 3,000 |  |  | — |
Edge Autonomy Holdings, LLC |  | 4,000 |  |  | — |
Exact Borrower, LLC |  | 2,500 |  |  | 2,500 |
FM Sylvan, Inc. |  | 10,000 |  |  | 8,000 |
FS Vector LLC |  | 2,000 |  |  | — |
Gains Intermediate, LLC |  | 2,500 |  |  | 2,500 |
GPT Industries, LLC |  | 3,000 |  |  | 3,000 |
GrammaTech, Inc. |  | 2,500 |  |  | 2,500 |
Gulf Pacific Acquisition, LLC |  | 1,010 |  |  | 657 |
HH-Inspire Acquisition, Inc. |  | 199 |  |  | — |
Institutes of Health, LLC |  | 1,000 |  |  | — |
ISI Enterprises, LLC |  | 2,000 |  |  | 2,000 |
Island Pump and Tank, LLC |  | 1,500 |  |  | 1,000 |
ITA Holdings Group, LLC |  | 3,525 |  |  | — |
Lash OpCo, LLC |  | 202 |  |  | 138 |
Lighting Retrofit International, LLC |  | 2,083 |  |  | 2,083 |
Lightning Intermediate II, LLC |  | 1,296 |  |  | 1,852 |
LKC Technologies, Inc. |  | 2,000 |  |  | — |
Mako Steel LP |  | 1,509 |  |  | 943 |
Microbe Formulas LLC |  | 1,627 |  |  | 1,627 |
Muenster Milling Company, LLC |  | 7,000 |  |  | 7,000 |
New Skinny Mixes, LLC |  | 2,250 |  |  | 4,000 |
NinjaTrader, Inc. |  | 2,500 |  |  | 2,500 |
|  | September 30, |  | March 31,
Portfolio Company |  | 2023 |  | 2023
NWN Parent Holdings, LLC |  | 1,800 |  |  | 480 |
Opco Borrower, LLC |  | 833 |  |  | 833 |
Outerbox, LLC |  | 2,000 |  |  | 2,000 |
Pipeline Technique Ltd. |  | 1,944 |  |  | 2,833 |
Roof OpCo, LLC |  | 3,056 |  |  | 3,056 |
Roseland Management, LLC |  | 1,700 |  |  | 1,425 |
RTIC Subsidiary Holdings LLC |  | 658 |  |  | 548 |
Shearwater Research, Inc. |  | 2,446 |  |  | 2,446 |
SIB Holdings, LLC |  | 23 |  |  | — |
South Coast Terminals LLC |  | 1,935 |  |  | 1,935 |
Spotlight AR, LLC |  | 2,000 |  |  | 2,000 |
Swensons Drive-In Restaurants, LLC |  | 1,500 |  |  | — |
Systec Corporation |  | — |  |  | 400 |
Versicare Management LLC |  | 2,500 |  |  | 2,500 |
Wall Street Prep, Inc. |  | 1,000 |  |  | 1,000 |
Well-Foam, Inc. |  | 4,500 |  |  | 4,500 |
Winter Services Operations, LLC |  | 4,444 |  |  | 4,444 |
Total Revolving Loans |  | 105,715 |  |  | 87,554 |
Delayed Draw Term Loans |  |  |  |
AAC New Holdco Inc. |  | 166 |  |  | 199 |
Acacia BuyerCo V LLC |  | 2,500 |  |  | 2,500 |
Acceleration, LLC |  | — |  |  | 5,000 |
Central Medical Supply LLC |  | 1,400 |  |  | 1,400 |
CityVet, Inc. |  | 5,000 |  |  | — |
Damotech Inc. |  | 3,000 |  |  | — |
Exact Borrower, LLC |  | — |  |  | 2,500 |
Gains Intermediate, LLC |  | 5,000 |  |  | 5,000 |
Gulf Pacific Acquisition, LLC |  | 1,212 |  |  | 1,212 |
Infolinks Media Buyco, LLC |  | 900 |  |  | 2,250 |
ITA Holdings Group, LLC |  | 2,969 |  |  | — |
KMS, LLC |  | — |  |  | 2,286 |
New Skinny Mixes, LLC |  | 3,000 |  |  | 3,000 |
NinjaTrader, Inc. |  | — |  |  | 4,692 |
Versicare Management LLC |  | — |  |  | 2,600 |
Winter Services Operations, LLC |  | — |  |  | 4,444 |
Total Delayed Draw Term Loans |  | 25,147 |  |  | 37,083 |
Total Unfunded Debt Commitments |  | $ | 130,862 |  |  | $ | 124,637 |
The following table provides additional information regarding the expiration year of the Company’s unfunded debt commitments (amounts in thousands):
|  | September 30, 2023 |  | March 31, 2023
Unfunded Debt Commitments |  |  |  |
Expiring during: |  |  |  |
2024 |  | $ | 11,566 |  |  | $ | 31,625 |
2025 |  | 15,911 |  |  | 10,637 |
2026 |  | 10,021 |  |  | 6,712 |
2027 |  | 35,880 |  |  | 38,062 |
2028 |  | 39,149 |  |  | 35,318 |
2029 |  | 18,335 |  |  | 2,283 |
Total Unfunded Debt Commitments |  | $ | 130,862 |  |  | $ | 124,637 |
The balances of unfunded equity commitments as of September 30, 2023 and March 31, 2023 were as follows (amounts in thousands):
|  | September 30, 2023 |  | March 31, 2023
Unfunded Equity Commitments |  |  |  |
Catbird NYC, LLC |  | $ | 125 |  |  | $ | 125 |
Infolinks Media Buyco, LLC |  | 412 |  |  | 412 |
Total Unfunded Equity Commitments |  | $ | 537 |  |  | $ | 537 |
As of September 30, 2023, total revolving and delayed draw loan commitments included commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. As of September 30, 2023, the Company had $0.9 million in letters of credit issued and outstanding under these commitments on behalf of portfolio companies. For all of these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. Of these letters of credit, $0.4 million expire in February 2024, $0.2 million expire in April 2024 and $0.3 million expire in August 2024. As of September 30, 2023, none of the letters of credit issued and outstanding were recorded as a liability on the Company's balance sheet as such letters of credit are considered in the valuation of the investments in the portfolio company. Effective April 1, 2019, ASC 842 required that a lessee evaluate its leases to determine whether they should be classified as operating or financing leases. The Company previously had an operating lease for its office space that commenced October 1, 2014 and expired February 28, 2022. In March 2021, the Company executed an agreement to lease new office space that commenced on February 1, 2022 and expires September 30, 2032. The Company identified the foregoing as an operating lease. ASC 842 indicates that an ROU asset and lease liability should be recorded based on the effective date. As such, CSWC recorded an ROU asset, which is included in other assets on the Consolidated Statements of Assets and Liabilities, and a lease liability, which is included in other liabilities on the Consolidated Statements of Assets and Liabilities, as of February 1, 2022. The Company has recorded lease expense on a straight-line basis. Total lease expense incurred for each of the three months ended September 30, 2023 and 2022 was $63.1 thousand. Total lease expense incurred for each of the six months ended September 30, 2023 and 2022 was $126.1 thousand. As of both September 30, 2023 and March 31, 2023, the asset related to the operating lease was $1.8 million and the lease liability was $2.7 million and $2.8 million, respectively. As of September 30, 2023, the remaining lease term was 9.0 years and the discount rate was 7.70%. The following table shows future minimum payments under the Company's operating leases as of September 30, 2023 (in thousands):
Year ending March 31, | Rent Commitment
2024 | $ | 206 |
2025 | 416 |
2026 | 426 |
2027 | 436 |
2028 | 446 |
Thereafter | 2,132 |
Total | $ | 4,062 |
Contingencies We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. To our knowledge, we have no currently pending material legal proceedings to which we are party or to which any of our assets are subject.

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