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Commitments
 12 Months Ended
Sep. 30, 2024
Commitments [Abstract]  
Commitments

 Note 8. Commitments

 

Unfunded commitments

 

As of September 30, 2024 and 2023, we had commitments under loan and financing agreements to fund up to $1.6 million to two portfolio companies and $3.4 million to four portfolio companies, respectively. These commitments are primarily composed of senior secured delayed draw term loans and revolvers, and the determination of their fair value is included in the Consolidated Schedules of Investments. The commitments are generally subject to the borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. The terms of the borrowings and financings subject to commitment are comparable to the terms of other loan and equity securities in our portfolio. A summary of the composition of the unfunded commitments as of September 30, 2024 and 2023 is shown in the table below (dollars in thousands):

 

   September 30, 2024   September 30, 2023 
Secure Acquisition Inc. (dba Paragon Films) - Senior Secured First Lien Delayed Draw Term Loan  $
-
   $517 
NVTN LLC - Senior Secured First Lien Delayed Draw Term Loan   
-
    220 
Deer Management Systems LLC - Senior Secured First Lien Delayed Draw Term Loan   
-
    600 
XYZ Roofco, LLC (dba SMC Roofing Solutions LLC) - First Out Delayed Draw Term Loan   57    
-
 
XYZ Roofco, LLC (dba SMC Roofing Solutions LLC) - Last Out Delayed Draw Term Loan   246    
-
 
Tamarix Capital Partners II, L.P. - Fund Investment   1,313    2,038 
Total unfunded commitments  $1,616   $3,375 

 

Lease obligations

 

The Company evaluates its leases to determine whether they should be classified as operating or financing leases. PhenixFIN identified one operating lease for its office space. The lease commenced September 1, 2021 and expires November 30, 2026.

 

Upon entering into the lease on September 1, 2021, PhenixFIN recorded a right-of-use asset and a lease liability as of that date.

 

Total operating lease cost incurred by PhenixFIN for the years ended September 30, 2024, 2023 and 2022 was $141,330, $141,330 and $129,552, respectively. As of September 30, 2024 and 2023, the asset related to the operating lease was $322,131 and $449,815, respectively, and is included in the Other assets balance on the Consolidated Balance Sheet. As of September 30, 2024 and 2023, the lease liability was $294,063 and $432,698, respectively, and is included in the Other liabilities balance on the Consolidated Statements of Assets and Liabilities. As of September 30, 2024 and 2023, the remaining lease term was approximately two and three years, respectively, for each of the respective periods and the implied borrowing rate was 5.25% for each of the respective periods.

 

The following table shows future minimum payments under PhenixFIN’s operating lease as of September 30, 2024:

 

For the Years Ended September 30,  Amount 
2025  $161,050 
2026   161,680 
2027   27,417 
Thereafter   
-
 
    350,147 
Difference between undiscounted and discounted cash flows   (56,084)
   $294,063