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Distributable Taxable Income (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Reclassified for Book Purposes Amounts Arising from Permanent Book/Tax Differences the Company reclassified for book purposes amounts arising from permanent book/tax differences related to the tax treatment of return of capital distributions, non-deductible expenses, investments on non-accrual status, and capital loss carryforwards acquired as the result of the merger, as follows (amounts in thousands, except share and per share amounts):

 

 

 

Year Ended December 31,

 

($ in thousands)

 

2022

 

 

2021

 

 

2020

 

Capital in excess of par value

 

$

5,768

 

 

$

35,573

 

 

$

144,223

 

Total distributable (loss) earnings

 

$

(5,768

)

 

$

(35,573

)

 

$

(144,223

)

 
Reconciliation of Net Increase in Net Assets Resulting From Operations to Taxable Income

The following reconciles net increase in net assets resulting from operations to taxable income for the years ended December 31, 2022 and December 31, 2021 (amounts in thousands, except share and per share amounts):

 

 

 

Year Ended December 31,

 

($ in thousands)

 

2022

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(20,996

)

 

$

26,026

 

 

$

31,573

 

Tax (provision) benefit on realized and unrealized (gains) losses on investments

 

 

786

 

 

 

1,442

 

 

 

-

 

Net change in unrealized depreciation (appreciation) from investments

 

 

17,915

 

 

 

8,443

 

 

 

(6,813

)

Net realized losses

 

 

31,185

 

 

 

6,093

 

 

 

(7,759

)

Book/tax differences on CLO equity investments

 

 

72

 

 

 

3,410

 

 

 

(3,527

)

Book/tax differences related to mergers and partnership investments

 

 

(586

)

 

 

(23,639

)

 

 

(5,829

)

Other book/tax differences

 

 

1,203

 

 

 

939

 

 

 

3,135

 

Taxable income before deductions for distributions

 

$

29,579

 

 

$

22,714

 

 

$

10,779

 

Taxable income before deductions for distributions per weighted
   average basic and diluted shares for the period1

 

$

3.07

 

 

$

2.66

 

 

$

2.16

 
(1)
The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, amounts have been adjusted retroactively to reflect the split.
Summary of Distributions to Shareholders

Distributions to shareholders that exceed tax-basis distributable income (tax-basis net investment income and realized gains, if any) are reported as distributions of paid-in capital (i.e. return of capital). The tax character of distributions is made on an annual (full calendar year) basis. The determination of the tax attributes of our distributions is made at the end of the year based upon our taxable income for the full year and the distributions paid during the full year. Therefore, a determination of tax attributes made on a quarterly basis may not be representative of the actual tax attributes of distributions for a full year.

 

($ in thousands)

 

Year Ended December 31,

 

Distributions paid from:

 

2022

 

 

2021

 

 

2020

 

Ordinary Income

 

$

24,661

 

 

$

20,575

 

 

$

10,694

 

Return of Capital

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

24,661

 

 

$

20,575

 

 

$

10,694

 
Components of Accumulated Earnings on Tax Basis

As of December 31, 2022 and December 31, 2021, the components of accumulated earnings on tax basis (in thousands) were as follows:

 

 

 

Year Ended December 31,

 

($ in thousands)

 

2022

 

 

2021

 

 

2020

 

Capital loss carryforward

 

 

(418,937

)

 

 

(385,880

)

 

 

(339,584

)

Other temporary differences

 

 

-

 

 

 

(375

)

 

 

(370

)

Net unrealized depreciation

 

 

77,496

 

 

 

69,611

 

 

 

(82,993

)