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Distributions | 3 Months Ended
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Mar. 31, 2024
Equity [Abstract] |
Distributions | Distributions From February 1, 2014 through July 17, 2017, the Company’s board of directors authorized and declared on a monthly basis a weekly distribution amount per share of common stock. On July 18, 2017, the Company's board of directors authorized and declared on a quarterly basis a weekly distribution amount per share of common stock. Effective September 28, 2017, the Company's board of directors delegated to management the authority to determine the amount, record dates, payment dates and other terms of distributions to shareholders, which will be ratified by the board of directors on a quarterly basis. Beginning on March 19, 2020, management changed the timing of declaring distributions from quarterly to monthly and temporarily suspended the payment of distributions to shareholders commencing with the month ended April 30, 2020, whether in cash or pursuant to the Old DRP. On July 15, 2020, the board of directors determined to recommence the payment of distributions to shareholders in August 2020. On September 15, 2021, management changed the timing of declaring and paying base distributions to shareholders from monthly to quarterly commencing with the fourth quarter of 2021. Base distributions in respect of future quarters and any supplemental or special distributions will be evaluated by management and the board of directors based on circumstances and expectations existing at the time of consideration. The Company’s management declared and the Company's board of directors ratified distributions for 7 and 1 record dates during the year ended December 31, 2023 and the three months ended March 31, 2024, respectively. The following table presents distributions per share that were declared during the year ended December 31, 2023 and the three months ended March 31, 2024:
|  | Distributions
Three Months Ended |  | Per Share |  | Amount
2023 |  |  |  |
March 31, 2023 (one record date) |  | $ | 0.34 |  |  | $ | 18,687 |
June 30, 2023 (one record date) |  | 0.34 |  |  | 18,614 |
September 30, 2023 (two record dates) |  | 0.39 |  |  | 21,276 |
December 31, 2023 (three record dates) |  | 0.54 |  |  | 29,290 |
Total distributions for the year ended December 31, 2023 |  | $ | 1.61 |  |  | $ | 87,867 |
2024 |  |  |  |
March 31, 2024 (one record date) |  | $ | 0.34 |  |  | $ | 18,279 |
Total distributions for the three months ended March 31, 2024 |  | $ | 0.34 |  |  | $ | 18,279 |
On May 6, 2024, the Company’s co-chief executive officers declared a quarterly base distribution of $0.36 per share for the second quarter of 2024 payable on June 17, 2024 to shareholders of record as of June 3, 2024. In connection with the Listing of its shares of common stock on the NYSE, on September 15, 2021, the Company terminated the Old DRP. The final distribution reinvestment under the Old DRP was made as part of the monthly base distribution paid on September 14, 2021. On September 15, 2021, the Company adopted the New DRP, which became effective as of the Listing and first applied to the reinvestment of distributions paid on December 8, 2021. Under the Old DRP and prior to the Listing, distributions to participating shareholders who “opted in” to the Old DRP were reinvested in additional shares of the Company's common stock at a purchase price equal to the estimated NAV per share of common stock as of the date of issuance. Upon the Listing, all shareholders were automatically enrolled in the New DRP and will receive distributions as declared by the Company in additional shares of its common stock unless such shareholder affirmatively elects to receive an entire distribution in cash by notifying (i) such shareholder’s financial adviser; or (ii) if such shareholder has a registered account maintained at the Company’s transfer agent, the plan administrator. With respect to distributions to participating shareholders under the New DRP, the Company reserves the right to either issue new shares or cause the plan administrator to purchase shares in the open market in connection with implementation of the New DRP. Unless the Company, in its sole discretion, otherwise directs DST Asset Management Solutions, Inc., the plan administrator, (A) if the per share “market price” (as defined in the New DRP) is equal to or greater than the estimated NAV per share on the payment date for the distribution, then the Company will issue shares at the greater of (i) the estimated NAV or (ii) 95% of the market price, or (B) if the market price is less than the estimated NAV, then, in the Company’s sole discretion, (i) shares will be purchased in open market transactions for the accounts of participating shareholders to the extent practicable, or (ii) the Company will issue shares at the estimated NAV. Pursuant to the terms of the New DRP, the number of shares to be issued to a participating shareholder will be determined by dividing the total dollar amount of the distribution payable to a participating shareholder by the price per share at which the Company issues such shares; provided, however, that shares purchased in open market transactions by the plan administrator will be allocated to a participating shareholder based on the weighted average purchase price, excluding any brokerage charges or other charges, of all shares purchased in the open market with respect to such distribution. If a shareholder receives distributions in the form of common stock pursuant to the New DRP, such shareholder generally will be subject to the same federal, state and local tax consequences as if they elected to receive distributions in cash. If the Company’s common stock is trading at or below NAV, a shareholder receiving distributions in the form of additional common stock will be treated as receiving a distribution in the amount of cash that such shareholder would have received if they had elected to receive the distribution in cash. If the Company’s common stock is trading above NAV, a shareholder receiving distributions in the form of additional common stock will be treated as receiving a distribution in the amount of the fair market value of the Company’s common stock. The shareholder’s basis for determining gain or loss upon the sale of common stock received in a distribution will be equal to the total dollar amount of the distribution payable to the shareholder. Any stock received in a distribution will have a holding period for tax purposes commencing on the day following the day on which the shares of common stock are credited to the shareholder’s account. The following table provides information concerning the Company’s purchases of shares of its common stock in the open market during the year ended December 31, 2023 and the three months ended March 31, 2024 pursuant to the New DRP in order to satisfy the reinvestment portion of the Company’s distributions:
Period |  | Total Number of Shares Purchased |  | Average Price Paid per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |  | Approximate Dollar Value of Shares That May Yet Be Purchased Under Publicly Announced Plans of Programs
2023 |  |  |  |  |  |  |  |
January 1 to January 31, 2023 |  | 146,946 |  |  | $ | 11.19 |  |  | 146,946 |  |  | (1)
February 1 to February 28, 2023 |  | — |  |  | — |  |  | — |  |  | — |
March 1 to March 31, 2023 |  | 204,427 |  |  | 9.78 |  |  | 204,427 |  |  | (1)
April 1 to April 30, 2023 |  | — |  |  | — |  |  | — |  |  | — |
May 1 to May 31, 2023 |  | — |  |  | — |  |  | — |  |  | — |
June 1 to June 30, 2023 |  | 174,424 |  |  | 10.71 |  |  | 174,424 |  |  | (1) |
July 1 to July 31, 2023 |  | — |  |  | — |  |  | — |  |  | — |
August 1 to August 31, 2023 |  | — |  |  | — |  |  | — |  |  | — |
September 1 to September 30, 2023 |  | 160,383 |  |  | 11.10 |  |  | 160,383 |  |  | (1) |
October 1 to October 31, 2023 |  | 25,764 |  |  | 10.30 |  |  | 25,764 |  |  | (1)
November 1 to November 30, 2023 |  | — |  |  | — |  |  | — |  |  | — |
December 1 to December 31, 2023 |  | 139,731 |  |  | 11.66 |  |  | 139,731 |  |  | (1)
Total for the year ended December 31, 2023 |  | 851,675 |  |  | $ | 10.79 |  |  | 851,675 |  |  | (1)
2024 |  |  |  |  |  |  |  |
January 1 to January 31, 2024 |  | 92,108 |  |  | $ | 11.05 |  |  | 92,108 |  |  | (1) |
February 1 to February 29, 2024 |  | — |  |  | — |  |  | — |  |  | — |
March 1 to March 31, 2024 |  | 170,571 |  |  | 11.09 |  |  | 170,571 |  |  | (1)
Total for the three months ended March 31, 2024 |  | 262,679 |  |  | $ | 11.07 |  |  | 262,679 |  |  | (1)
(1) See the description of the New DRP above. The Company may fund its distributions to shareholders from any sources of funds available to the Company, including borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, and dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies. Any such distributions can only be sustained if the Company maintains positive investment performance in future periods. There can be no assurances that the Company will maintain such performance in order to sustain these distributions or be able to pay distributions at all. On December 31, 2021, the Company and CIM allowed the expense support and conditional reimbursement agreement to expire in accordance with its terms. As a result, CIM has no obligation to provide expense support to the Company in future periods. The Company has not established limits on the amount of funds it may use from available sources to pay distributions. The following table reflects the sources of distributions on a GAAP basis that the Company has declared on its shares of common stock during the three months ended March 31, 2024 and 2023 and the year ended December 31, 2023:
|  | Three Months Ended March 31, |  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2023
Source of Distribution |  | Per Share |  | Amount |  | Percentage |  | Per Share |  | Amount |  | Percentage |  | Per Share |  | Amount |  | Percentage
Net investment income |  | $ | 0.34 |  |  | $ | 18,279 |  |  | 100.0 | % |  | $ | 0.34 |  |  | $ | 18,687 |  |  | 100.0 | % |  | $ | 1.61 |  |  | $ | 87,867 |  |  | 100.0 | %
Total distributions |  | $ | 0.34 |  |  | $ | 18,279 |  |  | 100.0 | % |  | $ | 0.34 |  |  | $ | 18,687 |  |  | 100.0 | % |  | $ | 1.61 |  |  | $ | 87,867 |  |  | 100.0 | %
It is the Company's policy to comply with all requirements of the Code applicable to RICs and to distribute at least 90% of its taxable income to its shareholders. In addition, by distributing during each calendar year at least 90% of its “investment company taxable income”, which is generally equal to the sum of the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses, the Company intends not to be subject to corporate level federal income tax. Accordingly, no federal income tax provision was required for the year ended December 31, 2023. The Company will also be subject to nondeductible federal excise taxes of 4% if the Company does not distribute at least 98.0% of net ordinary income, 98.2% of capital gains, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes. Income and capital gain distributions are determined in accordance with the Code and federal tax regulations, which may differ from amounts determined in accordance with GAAP. These book/tax differences, which could be material, are primarily due to differing treatments of income and gains on various investments held by the Company. Permanent book/tax differences result in reclassifications to capital in excess of par value, accumulated undistributed net investment income and accumulated undistributed realized gain on investments. The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV. All distributions for 2023 were characterized as ordinary income distributions for federal income tax purposes. The tax components of accumulated earnings or losses for the current year will be determined at year end. As of December 31, 2023, the components of accumulated losses on a tax basis were as follows:
| December 31, 2023
Undistributed ordinary income | $ | 6,562 |
Other accumulated losses(1) | (84,271) |
Net unrealized depreciation on investments | (74,433) |
Total accumulated losses | $ | (152,142) |
(1)Includes short term capital loss carryforwards of $0 and long term capital loss carryforwards of $82,541. As of March 31, 2024, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $60,134; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $158,114; the net unrealized depreciation was $97,980; and the aggregate cost of securities for Federal income tax purposes was $1,968,817. As of December 31, 2023, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $71,010; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $145,443; the net unrealized depreciation was $74,433; and the aggregate cost of securities for Federal income tax purposes was $2,028,711.

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