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COMMITMENTS AND CONTINGENCIES | 6 Months Ended
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Sep. 30, 2024
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, 2024 and March 31, 2024 were as follows (amounts in thousands):
|  | September 30, |  | March 31,
Portfolio Company |  | 2024 |  | 2024
Revolving Loans |  |  |  |
Acacia BuyerCo V LLC |  | $ | 2,000 |  |  | $ | 2,000 |
Acceleration, LLC |  | — |  |  | 5,000 |
Air Conditioning Specialist, Inc. |  | 1,675 |  |  | 1,675 |
Apple Roofing Administrative Services, LLC (fka Roof OpCo, LLC) |  | 3,056 |  |  | 3,056 |
ArborWorks, LLC |  | 307 |  |  | 432 |
ATS Operating, LLC |  | 1,189 |  |  | 1,640 |
Bond Brand Loyalty ULC |  | 2,000 |  |  | 2,000 |
BP Loenbro Holdings Inc. |  | 440 |  |  | 1,101 |
Brandner Design, LLC |  | 1,000 |  |  | — |
Burning Glass Intermediate Holding Company, Inc. |  | 296 |  |  | 296 |
Campany Roof Maintenance, LLC |  | 1,064 |  |  | — |
Catbird NYC, LLC |  | 2,500 |  |  | 4,000 |
Cavalier Buyer, Inc. |  | 2,000 |  |  | 2,000 |
CDC Dental Management Co., LLC |  | 2,000 |  |  | 2,000 |
Central Medical Supply LLC |  | 1,300 |  |  | 800 |
Damotech Inc. |  | 3,000 |  |  | 3,000 |
Edge Autonomy Holdings, LLC |  | 4,000 |  |  | 4,000 |
Exact Borrower, LLC |  | 2,500 |  |  | 2,500 |
FS Vector LLC |  | 2,000 |  |  | 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 |  | 303 |  |  | 555 |
HH-Inspire Acquisition, Inc. |  | 46 |  |  | 46 |
Ignite Visibility LLC |  | 2,000 |  |  | 2,000 |
Institutes of Health, LLC |  | 1,000 |  |  | 1,000 |
ISI Enterprises, LLC |  | 2,000 |  |  | 2,000 |
Island Pump and Tank, LLC |  | 3,479 |  |  | 1,500 |
ITA Holdings Group, LLC |  | — |  |  | 1,058 |
Lab Logistics, LLC |  | 40 |  |  | — |
LEHR Upfitters, LLC |  | 1,749 |  |  | — |
LGM Pharma LLC |  | 1,500 |  |  | 1,500 |
Lighting Retrofit International, LLC |  | 1,354 |  |  | 1,354 |
Lightning Intermediate II, LLC |  | 1,852 |  |  | 1,852 |
|  | September 30, |  | March 31,
Portfolio Company |  | 2024 |  | 2024
LKC Technologies, Inc. |  | 2,000 |  |  | 2,000 |
Mako Steel LP |  | 1,887 |  |  | 1,887 |
Mammoth BorrowCo, Inc. |  | 500 |  |  | 1,950 |
Microbe Formulas LLC |  | 1,627 |  |  | 1,627 |
NeuroPsychiatric Hospitals, LLC |  | 1,000 |  |  | — |
New Skinny Mixes, LLC |  | 3,000 |  |  | 3,500 |
NinjaTrader, Inc. |  | 2,500 |  |  | 2,500 |
Opco Borrower, LLC |  | — |  |  | 833 |
Outerbox, LLC |  | — |  |  | 2,000 |
Pipeline Technique Ltd. |  | 944 |  |  | 2,278 |
Pool Service Holdings, LLC |  | 1,000 |  |  | — |
Revo Brands, Inc. |  | 2,800 |  |  | 7,000 |
Roseland Management, LLC |  | 2,000 |  |  | 2,000 |
RTIC Subsidiary Holdings LLC |  | — |  |  | 301 |
South Coast Terminals LLC |  | — |  |  | 1,935 |
Spotlight AR, LLC |  | 2,000 |  |  | 2,000 |
Swensons Drive-In Restaurants, LLC |  | 1,500 |  |  | 1,500 |
TMT BHC Buyer, Inc. |  | 4,717 |  |  | 4,717 |
Tru Fragrance & Beauty LLC |  | 3,000 |  |  | 3,900 |
Versicare Management LLC |  | 1,800 |  |  | 2,500 |
Wall Street Prep, Inc. |  | 1,000 |  |  | 1,000 |
Well-Foam, Inc. |  | 4,500 |  |  | 4,500 |
Winter Services Operations, LLC |  | 5,333 |  |  | 3,111 |
Zenfolio Inc. |  | 1,000 |  |  | 1,000 |
Total Revolving Loans |  | 99,758 |  |  | 112,404 |
Delayed Draw Term Loans |  |  |  |
AAC New Holdco Inc. |  | 196 |  |  | — |
Air Conditioning Specialist Inc. |  | 750 |  |  | 750 |
BP Loenbro Holdings Inc. |  | 1,101 |  |  | 1,101 |
Campany Roof Maintenance, LLC |  | 6,014 |  |  | — |
Central Medical Supply LLC |  | 1,400 |  |  | 1,400 |
CityVet, Inc. |  | 9,000 |  |  | 5,000 |
Gulf Pacific Acquisition, LLC |  | — |  |  | 1,212 |
Ignite Visibility LLC |  | — |  |  | 2,000 |
ITA Holdings Group, LLC |  | — |  |  | 854 |
LEHR Upfitters, LLC |  | 5,247 |  |  | — |
Mammoth BorrowCo, Inc. |  | — |  |  | 1,325 |
New Skinny Mixes, LLC |  | — |  |  | 3,000 |
One Group, LLC |  | 545 |  | 545 |
Pool Service Holdings, LLC |  | 2,500 |  |  | 5,000 |
SureKap, LLC |  | 1,172 |  |  | — |
TMT BHC Buyer, Inc. |  | 5,000 |  |  | 5,000 |
Total Delayed Draw Term Loans |  | 32,925 |  |  | 27,187 |
|  | September 30, |  | March 31,
Portfolio Company |  | 2024 |  | 2024
Other |  |  |  |
Broad Sky Networks, LLC |  | 57 |  |  | — |
Total Other |  | 57 |  |  | — |
Total Unfunded Debt Commitments |  | $ | 132,740 |  |  | $ | 139,591 |
The following table provides additional information regarding the expiration year of the Company’s unfunded debt commitments (amounts in thousands):
|  | September 30, 2024 |  | March 31, 2024
Unfunded Debt Commitments |  |  |  |
Expiring during: |  |  |  |
2025 |  | $ | 23,379 |  |  | $ | 26,462 |
2026 |  | 18,627 |  |  | 8,242 |
2027 |  | 29,253 |  |  | 31,417 |
2028 |  | 19,596 |  |  | 31,021 |
2029 |  | 35,657 |  |  | 42,449 |
2030 |  | 6,228 |  |  | — |
Total Unfunded Debt Commitments |  | $ | 132,740 |  |  | $ | 139,591 |
The balances of unfunded equity commitments as of September 30, 2024 and March 31, 2024 were as follows (amounts in thousands):
|  | September 30, 2024 |  | March 31, 2024
Unfunded Equity Commitments |  |  |  |
Catbird NYC, LLC |  | $ | 125 |  |  | $ | 125 |
Infolinks Media Buyco, LLC |  | 411 |  |  | 412 |
Total Unfunded Equity Commitments |  | $ | 536 |  |  | $ | 537 |
As of September 30, 2024, 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, 2024, 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 2025, $0.3 million expire in March 2025, and $0.2 million expire in April 2025. As of September 30, 2024, 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. In March 2021, the Company executed an agreement to lease 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. In December 2023, the Company executed an agreement to lease additional office space, which commenced on October 1, 2024. The additional office space is approximately 7,100 square feet. This is an amendment of the Company's current lease, which is classified as an operating lease. The term with respect to the additional office space is 10 years and the term of the current office space was extended for an additional 3 years. Total lease expense incurred for each of the three months ended September 30, 2024 and 2023 was $0.1 million. As of both September 30, 2024 and March 31, 2024, the asset related to the operating lease was $2.4 million, and as of both September 30, 2024 and March 31, 2024, the lease liability was $3.3 million and $3.2 million, respectively. As of September 30, 2024, the remaining lease term was 11 years and the discount rate was 6.89%. The following table shows future minimum payments under the Company's operating leases as of September 30, 2024 (in thousands):
Year ending March 31, | Rent Commitment
2025 | $ | 344 |
2026 | 697 |
2027 | 715 |
2028 | 733 |
2029 | 752 |
Thereafter | 5,759 |
Total | $ | 9,000 |
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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