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CUMULATIVE REDEEMABLE PREFERRED STOCK OFFERING | 12 Months Ended
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Sep. 30, 2023
Equity [Abstract] |
CUMULATIVE REDEEMABLE PREFERRED STOCK OFFERING | CUMULATIVE REDEEMABLE PREFERRED STOCK OFFERINGIn May 2023, we entered into a Dealer Manager Agreement pursuant to which we may sell a maximum of 6,000,000 shares of 6.25% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), par value $0.001 per share, on a “reasonable best efforts” basis through our affiliated dealer manager, Gladstone Securities, at a public offering price of $25.00 per share (the “Series A Offering”). As of September 30, 2023, no shares of Series A Preferred Stock have been issued.Under the Dealer Manager Agreement, Gladstone Securities will provide certain sales, promotional and marketing services to us in connection with the Series A Offering, and we will pay Gladstone Securities (i) selling commissions of up to 7.0% of the gross proceeds from sales of Series A Preferred Stock in the Series A Offering, and (ii) a dealer manager fee of up to 3.0% of the gross proceeds from sales of Series A Preferred Stock in the Series A Offering. Gladstone Securities may, in its sole discretion, reallow a portion of the dealer manager fee to participating broker-dealers in support of the Series A Offering. Pursuant to the Dealer Manager Agreement, the offering of the Series A Preferred Stock will terminate on the date that is the earlier of (1) December 31, 2026 (unless earlier terminated or extended by our Board of Directors) and (2) the date on which all 6,000,000 shares of Series A Preferred Stock offered are sold.DISTRIBUTIONS TO COMMON STOCKHOLDERS To qualify to be taxed as a RIC under Subchapter M of the Code, we must generally distribute to our stockholders, for each taxable year, at least 90% of our taxable ordinary income plus the excess of our net short- term capital gains over net long-term capital losses (“Investment Company Taxable Income”). The amount to be paid out as distributions to our stockholders is determined by our Board of Directors quarterly and is based on management’s estimate of Investment Company Taxable Income. Based on that estimate, our Board of Directors declares three monthly distributions to common stockholders each quarter. The federal income tax characteristics of all distributions will be reported to stockholders on the IRS Form 1099 after the end of each calendar year. Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of cash distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. For the calendar year ended December 31, 2022, 93.2% of distributions to common stockholders were deemed to be paid from ordinary income and 6.8% of distributions were deemed to be return of capital for 1099 stockholder reporting purposes. For the calendar year ended December 31, 2021, 100.0% of distributions to common stockholders were deemed to be paid from ordinary income for 1099 stockholder reporting purposes. We paid the following monthly distributions to common stockholders for the years ended September 30, 2023 and 2022:
Fiscal Year |  | Declaration Date |  | Record Date |  | Payment Date |  | Distribution per Common Share
2023 |  | October 11, 2022 |  | October 21, 2022 |  | October 31, 2022 |  | $ | 0.07 |
|  | October 11, 2022 |  | November 18, 2022 |  | November 30, 2022 |  | 0.07 |
|  | October 11, 2022 |  | December 20, 2022 |  | December 30, 2022 |  | 0.07 |
|  | January 10, 2023 |  | January 20, 2023 |  | January 31, 2023 |  | 0.075 |
|  | January 10, 2023 |  | February 17, 2023 |  | February 28, 2023 |  | 0.075 |
|  | January 10, 2023 |  | March 17, 2023 |  | March 31, 2023 |  | 0.075 |
|  | April 11, 2023 |  | April 21, 2023 |  | April 28, 2023 |  | 0.08 |
|  | April 11, 2023 |  | May 23, 2023 |  | May 31, 2023 |  | 0.08 |
|  | April 11, 2023 |  | June 21, 2023 |  | June 30, 2023 |  | 0.08 |
|  | July 11, 2023 |  | July 21, 2023 |  | July 31, 2023 |  | 0.0825 |
|  | July 11, 2023 |  | August 23, 2023 |  | August 31, 2023 |  | 0.0825 |
|  | July 11, 2023 |  | September 7, 2023 |  | September 15, 2023(A) |  | 0.02 |
|  | July 11, 2023 |  | September 21, 2023 |  | September 29, 2023 |  | 0.0825 |
|  | Year Ended September 30, 2023: |  | $ | 0.9425 |
2022 |  | October 12, 2021 |  | October 22, 2021 |  | October 29, 2021 |  | $ | 0.065 |
|  | October 12, 2021 |  | November 19, 2021 |  | November 30, 2021 |  | 0.065 |
|  | October 12, 2021 |  | December 23, 2021 |  | December 31, 2021 |  | 0.065 |
|  | January 11, 2022 |  | January 21, 2022 |  | January 31, 2022 |  | 0.065 |
|  | January 11, 2022 |  | February 18, 2022 |  | February 28, 2022 |  | 0.065 |
|  | January 11, 2022 |  | March 23, 2022 |  | March 31, 2022 |  | 0.065 |
|  | April 12, 2022 |  | April 22, 2022 |  | April 29, 2022 |  | 0.0675 |
|  | April 12, 2022 |  | May 20, 2022 |  | May 31, 2022 |  | 0.0675 |
|  | April 12, 2022 |  | June 22, 2022 |  | June 30, 2022 |  | 0.0675 |
|  | July 12, 2022 |  | July 22, 2022 |  | July 29, 2022 |  | 0.0675 |
|  | July 12, 2022 |  | August 23, 2022 |  | August 31, 2022 |  | 0.0675 |
|  | July 12, 2022 |  | September 22, 2022 |  | September 30, 2022 |  | 0.0675 |
|  | Year Ended September 30, 2022: |  | $ | 0.795 |
(A) Represents a supplemental distribution to common stockholders. Aggregate distributions declared and paid to our common stockholders were approximately $35.4 million and $27.3 million for the years ended September 30, 2023 and 2022, respectively, and were declared based on estimates of Investment Company Taxable Income. For the fiscal year ended September 30, 2023, our current and accumulated earnings and profits exceeded common stock distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $5.0 million of the first common distributions paid to common stockholders in the subsequent fiscal year as having been paid in the prior year. For the fiscal years ended September 30, 2022 and 2021, distributions declared and paid exceeded taxable income available for common distributions resulting in a partial return of capital of approximately $1.4 million and $1.0 million, respectively. The components of our net assets on a tax basis were as follows:
| Year Ended September 30,
2023 |  | 2022
Common stock | $ | 44 |  |  | $ | 35 |
Capital in excess of par value | 481,480 |  |  | 395,542 |
Cumulative net unrealized appreciation (depreciation) of investments | (17,454) |  |  | (6,438) |
Undistributed ordinary income | 4,978 |  |  | — |
Capital loss carryforward | (54,425) |  |  | (62,910) |
Other temporary differences | (5,928) |  |  | (10,742) |
Net Assets | $ | 408,695 |  |  | $ | 315,487 |
We intend to retain some or all of our realized capital gains first to the extent we have available capital loss carryforwards and second, through treating the retained amount as a “deemed distribution.” As of September 30, 2023, we had $54.4 million of capital loss carryforwards that do not expire. For the years ended September 30, 2023 and 2022, we recorded the following adjustments for permanent book-tax differences to reflect tax character. Results of operations, total net assets, and cash flows were not affected by these adjustments.
| Year Ended September 30,
| 2023 |  | 2022
Undistributed net investment income | $ | (373) |  |  | $ | (5,606) |
Accumulated net realized losses | 373 |  |  | 7,013 |
Capital in excess of par value | — |  |  | (1,407) |

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