XML 27 R17.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Commitments | 9 Months Ended
--- | ---
Jun. 30, 2024
Commitments [Abstract] |
Commitments | Note 8. Commitments Unfunded commitments As of June 30, 2024 and September 30, 2023, we had commitments under loan and financing agreements to fund up to $2.9 million to three 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 June 30, 2024 and September 30, 2023 is shown in the table below (dollars in thousands):
|  | June 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 |
SMC Roofing - First Out Delayed Draw Term Loan |  |  | 57 |  |  |  | - |
SMC Roofing - Last Out Delayed Draw Term Loan |  |  | 246 |  |  |  | - |
Deer Management Systems LLC - Senior Secured First Lien Delayed Draw Term Loan |  |  | 600 |  |  |  | 600 |
Tamarix Capital Partners II, L.P. - Fund Investment |  |  | 2,038 |  |  |  | 2,038 |
Total unfunded commitments |  | $ | 2,941 |  |  | $ | 3,375 |
Contingencies In December 2023, the Company established a subsidiary to serve as a regulated insurance company. The Company purchased 100,000 shares of the subsidiary’s common stock for a purchase price of $1.00 per share on February 8, 2024. This subsidiary also entered into a merger agreement pursuant to which it agreed to acquire a controlling interest in VR Insurance SPV, LLC, a company primarily engaged in the insurance business through its subsidiaries (“VR”), and to provide additional capital to such company. The Company’s total investment in the insurance subsidiary and VR is expected to approximate $49 million. The merger transaction is presently expected to close during 2024, subject to various closing conditions, including insurance regulatory approvals. 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. As of June 30, 2024 and September 30, 2023, the asset related to the operating lease was $353,366 and $449,815, respectively, and is included in the Other assets balance on the Consolidated Balance Sheet. As of June 30, 2024 and September 30, 2023, the lease liability was $327,045 and $432,698, respectively, and is included in the Other liabilities balance on the Consolidated Statements of Assets and Liabilities. As of June 30, 2024 and September 30, 2023, the remaining lease term was approximately two years and three years, respectively 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 June 30, 2024:
For the Years Ended September 30, |  | Amount |
2024 |  | $ | 41,159 |
2025 |  |  | 156,971 |
2026 |  |  | 161,680 |
2027 |  |  | 27,417 |
Thereafter |  |  | - |
|  |  | 387,227 |
Difference between undiscounted and discounted cash flows |  |  | (60,182 | )
|  | $ | 327,045 |

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 440 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/440/tableOfContent + Details
Name: | us-gaap_CommitmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration