XML 27 R16.htm IDEA: XBRL DOCUMENT v3.25.2
Commitments
 9 Months Ended
Jun. 30, 2025
Commitments [Abstract]  
Commitments

Note 8. Commitments

 

Unfunded commitments

 

As of June 30, 2025 and September 30, 2024, we had commitments under loan and financing agreements to fund up to $4.7 million to five portfolio companies and $1.6 million to two 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, 2025 and September 30, 2024 is shown in the table below (dollars in thousands): 

 

   June 30,
2025		   September 30,
2024		 
MB Precision Investment Holdings LLC - Senior Secured First Lien Revolver  $85   $
                 -
 
PSB Group, LLC - Revolver   765    
-
 
SS Acquisition, LLC (dba Soccer Shots Franchising) - Revolver   1,429    
-
 
Tamarix Capital Partners II, L.P. - Fund Investment   865    1,313 
Wingman Holdings, Inc. - Revolver   1,563    
-
 
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 
Total unfunded commitments  $4,707   $1,616 

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. On December 18, 2024, the Company amended the terms of the lease, contingent on certain events, extending the lease term until August 31, 2035, with a right to terminate on the 36th and 60th month anniversaries of September 1, 2025, as well as any time on or after the 84th month anniversary of September 1, 2025.

 

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, 2025 and September 30, 2024, the asset related to the operating lease was $231,469 and $322,131, respectively, and is included in the Other assets balance on the Consolidated Balance Sheet. As of June 30, 2025 and September 30, 2024, the lease liability was $190,743 and $294,063, respectively, and is included in the Other liabilities balance on the Consolidated Statements of Assets and Liabilities. As of June 30, 2025 and September 30, 2024, the remaining lease term was approximately one year and two 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, 2025:

 

For the Years Ended September 30,  Amount 
2025  $42,394 
2026   161,680 
2027   27,417 
Thereafter   
-
 
    231,491 
Difference between undiscounted and discounted cash flows   (40,748)
   $190,743