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Taxes and Distributions
 12 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Taxes and Distributions

8. TAXES AND DISTRIBUTIONS

Distributions from net investment income and net realized capital gains are determined in accordance with U.S. federal tax regulations, which may materially differ from amounts determined in accordance with GAAP. These book-to-tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are reclassified to undistributed net investment income, accumulated net realized gain or paid-in-capital, as appropriate. Distributions from net realized capital gains, if any, are normally declared and paid annually, but the Company may make distributions on a more frequent basis to comply with the distribution requirements for RICs under the Code.

As of September 30, 2024 and 2023, the cost of investments for federal income tax purposes approximates amortized cost reported in the Consolidated Schedule of Investments.

The following amounts were reclassified for tax purposes (in thousands):

 

 

Years Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Decrease in paid-in capital

 

$

(900

)

 

$

(531

)

 

$

(492

)

Decrease in accumulated net realized loss

 

 

8

 

 

 

(1,645

)

 

 

1,118

 

Increase in undistributed net investment income

 

 

892

 

 

 

2,176

 

 

 

(625

)

The following reconciles net increase in net assets resulting from operations to taxable income:

 

 

Years Ended September 30,

 

 

 

2024

 

 

2022

 

 

2021

 

Net increase in net assets resulting from operations

 

$

91,839

 

 

$

39,261

 

 

$

3,453

 

Net realized gain (loss) on investments

 

 

(177

)

 

 

16,155

 

 

 

11,106

 

Net realized gain (loss) on debt

 

 

383

 

 

 

—

 

 

 

—

 

Net change in unrealized depreciation (appreciation) on investments and debt

 

 

(14,324

)

 

 

12,075

 

 

 

34,023

 

Other book-to-tax differences

 

 

11,435

 

 

 

(5,081

)

 

 

(549

)

Other non-deductible expenses

 

 

2,220

 

 

 

1,924

 

 

 

993

 

Taxable income before dividends paid deduction

 

$

91,376

 

 

$

64,334

 

 

$

49,026

 

The components of undistributed taxable income on a tax basis and reconciliation to accumulated deficit on a book basis are as follows (in thousands):

 

 

As of September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Undistributed ordinary income – tax basis

 

$

30,316

 

 

$

17,158

 

 

$

11,141

 

Short-term realized loss carried forward

 

 

(16,286

)

 

 

(16,544

)

 

 

(24,655

)

Long-term realized loss carried forward

 

 

(88,745

)

 

 

(78,796

)

 

 

(65,977

)

Distributions payable and other book to tax differences

 

 

(11,639

)

 

 

(5,959

)

 

 

3,933

 

Net unrealized appreciation (depreciation) of investments and debt

 

 

(13,174

)

 

 

(27,499

)

 

 

(15,423

)

Total accumulated deficit – book basis

 

$

(99,528

)

 

$

(111,641

)

 

$

(90,981

)

 

The tax characteristics of distributions declared are as follows (in thousands):

 

 

Years Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Ordinary income (including short-term gains, if any)

 

$

80,627

 

 

$

60,451

 

 

$

46,685

 

Long-term capital gain

 

 

—

 

 

 

—

 

 

 

—

 

Total distributions

 

$

80,627

 

 

$

60,451

 

 

$

46,685

 

Total distributions per share based on weighted average shares

 

$

1.23

 

 

$

1.19

 

 

$

1.14