v3.25.4
Taxes and Distributions
 12 Months Ended
Sep. 30, 2025
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, 2025 and 2024, the cost of investments for federal income tax purposes approximates the amortized cost reported in the Consolidated Schedule of Investments.

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

 

 

Years Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Increase (Decrease) in paid-in capital

 

$

(3,462

)

 

$

(2,800

)

 

$

(1,703

)

Increase (Decrease) in accumulated net realized gain

 

 

68

 

 

 

(11,993

)

 

 

(1,494

)

Increase in undistributed net investment income

 

 

3,394

 

 

 

14,793

 

 

 

3,197

 

 

 

The following reconciles net (decrease) increase in net assets resulting from operations to taxable income ($ in thousands):

 

 

 

Years Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Net increase (decrease) in net assets resulting from operations

 

$

32,725

 

 

$

48,852

 

 

$

(33,807

)

Net realized (gain) loss on investments

 

 

52,434

 

 

 

33,646

 

 

 

156,757

 

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

 

 

(39,108

)

 

 

(22,428

)

 

 

(57,417

)

Other book-to-tax differences

 

 

(1,551

)

 

 

9,268

 

 

 

(6,006

)

Other non-deductible expenses

 

 

3,372

 

 

 

3,245

 

 

 

5,766

 

Taxable income before dividends paid deduction

 

$

47,872

 

 

$

72,583

 

 

$

65,293

 

 

 

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

 

 

 

Years Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Undistributed net investment income – tax basis

 

$

45,948

 

 

$

65,962

 

 

$

62,710

 

Short-term realized loss carried forward

 

 

(6,164

)

 

 

(3,397

)

 

 

(1,699

)

Long-term realized loss carried forward

 

 

(336,619

)

 

 

(287,545

)

 

 

(379,074

)

Distributions payable and other book to tax differences

 

 

(31,184

)

 

 

(37,435

)

 

 

83,860

 

Net unrealized appreciation (depreciation) on investments and debt

 

 

51,398

 

 

 

12,290

 

 

 

(10,141

)

Total accumulated deficit – book basis

 

$

(276,621

)

 

$

(250,125

)

 

$

(244,344

)

 

The tax characteristics of distributions declared are as follows:

 

 

 

Years Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

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

 

$

62,684

 

 

$

57,420

 

 

$

49,571

 

Long-term capital gain

 

 

—

 

 

 

—

 

 

 

—

 

Total distributions

 

$

62,684

 

 

$

57,420

 

 

$

49,571

 

Total distributions declared per share

 

$

0.96

 

 

$

0.88

 

 

$

0.76