WHITEHORSE FINANCE, INC._December 31, 2024

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

Form 10-K/A

Amendment No. 1

☒

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2024

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 814-00967

WHITEHORSE FINANCE, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware				45-4247759
(State or Other Jurisdiction of				(I.R.S. Employer
Incorporation or Organization)				Identification No.)


1450 Brickell Avenue, 31^st Floor
Miami, Florida				33131
(Address of Principal Executive Offices)				(Zip Code)

(305) 381-6999

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


		Name of Each Exchange on Which
Title of Each Class	Trading Symbol(s)	Registered
Common Stock, par value $0.001 per share	WHF	The Nasdaq Stock Market LLC (Nasdaq Global Select Market)
7.875% Notes due 2028	WHFCL	The Nasdaq Stock Market LLC (Nasdaq Global Select Market)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

The aggregate market value of common stock held by non-affiliates of the registrant on June 30, 2024 based on the closing price on that date of $12.27 on the Nasdaq Global Select Market was approximately $224.2 million. For the purposes of calculating this amount only, all directors and executive officers of the registrant have been treated as affiliates. There were 23,243,088 shares of the registrant’s common stock outstanding as of February 28, 2025.

DOCUMENTS INCORPORATED BY REFERENCE

None.

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EXPLANATORY NOTE

WhiteHorse Finance, Inc., a Delaware corporation (collectively, the “Company”, which may also be referred to as “we”, “us” or “our”), is filing this Amendment No. 1 on Form 10-K/A (the “Amendment”) to amend its original Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was originally filed with the Securities and Exchange Commission (“SEC”) on March 7, 2025 (the “Original Form 10-K”). As previously disclosed in Part I, Item 4 of the Company’s Form 10-Q for the fiscal quarter ended March 31, 2025, which was filed with the SEC on May 12, 2025, for the year ended December 31, 2024, it met the threshold to be an accelerated filer and did not correctly determine that fact. Based on this failure to correctly identify our filing status for 2024, we did not obtain or file an attestation report by Crowe LLP, our independent registered public accounting firm (“Crowe”), with respect to our internal control over financial reporting in the Original Form 10-K as required by Item 308(b) of Regulation S-K. The Amendment is being filed solely to:

amend the cover page of the Original Form 10-K to state that we are an accelerated filer;

amend and restate Part II, Item 8 of the Original Form 10-K to include Crowe’s Report of Independent Registered Public Accounting Firm, which includes an opinion on the Company’s financial statements, as defined in their report, as of December 31, 2024 and for each of the years in the three-year period ended December 31, 2024 and an opinion on the Company’s internal control over financial reporting as of December 31, 2024;

amend and restate Part II, Item 9A of the Original Form 10-K to update (i) management’s evaluation of disclosure controls and procedures in paragraph (a) to provide that, as of December 31, 2024, our disclosure controls and procedures were not effective, and (ii) management’s report on internal control over financial reporting in paragraph (b) to state that Crowe has issued a report on the effectiveness of our internal control over financial reporting; and

file new Exhibits 31.1, 31.2, 32.1 and 32.2, certifications of our Chief Executive Officer and Chief Financial Officer, as exhibits to this Amendment under Item 15 of Part IV hereof, pursuant to Rule 13a-14(a) and (b) of the Securities Exchange Act of 1934, as amended, and file new consents issued by Crowe related to Exhibits 99.1 and 99.2.

Except as described above, no other changes have been made to the Original Form 10-K. This Amendment does not reflect subsequent events that may have occurred after the original filing date of the Original Form 10-K or modify or update in any way disclosures made in the Original Form 10-K, except as required to reflect the revisions discussed above. Among other things, forward-looking statements made in the Original Form 10-K have not been revised to reflect events that occurred or facts that became known to us after filing of the Original Form 10-K, and such forward-looking statements should be read in their historical context. Furthermore, this Amendment should be read in conjunction with the Original Form 10-K and with our subsequent filings with the SEC.

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WHITEHORSE FINANCE, INC.

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		Page
Part II.
Item 8.	Consolidated Financial Statements and Supplementary Data	4
Item 9A.	Controls and Procedures	75
Part IV.
Item 15.	Exhibits and Financial Statements	76
Signatures		79

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Item 8. Consolidated Financial Statements and Supplementary Data

Index to Consolidated Financial Statements


Report of Independent Registered Public Accounting Firm (PCAOB ID 173)	5
Consolidated Statements of Assets and Liabilities as of December 31, 2024 and 2023	8
Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022	9
Consolidated Statements of Changes in Net Assets for the years ended December 31, 2024, 2023 and 2022	10
Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022	11
Consolidated Schedules of Investments as of December 31, 2024 and 2023	13
Notes to the Consolidated Financial Statements	30

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and the Board of Directors

of WhiteHorse Finance, Inc.

Miami, Florida

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of WhiteHorse Finance, Inc. (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, changes in net assets, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and the consolidated financial highlights for each of the five years in the period ended December 31, 2024 (collectively referred to as the “financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations, the changes in its net assets and its cash flows for each of the years in the three-year period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework: (2013) issued by COSO.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. These procedures include confirmation of investments owned as of December 31, 2024 and 2023, by correspondence with the custodian, loan agent, borrower and other auditing procedures where replies were not received. We believe that our audits provide a reasonable basis for our opinions.

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Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of Level 3 Investments

As described in Notes 1, 2, 4 and 5 to the consolidated financial statements, the Company invests in senior secured loans, including first lien and second lien facilities, and may make investments at other levels of an investee’s capital structure, including mezzanine loans or equity investments, and may receive warrants to purchase common stock in connection with its debt investments. With few exceptions, these investments are classified as Level 3 investments. Level 3 investments represent approximately $619.5 million of the $642.2 million of investments held as of December 31, 2024. Management determines the fair value of the Company’s Level 3 investments by applying the methodologies outlined in Note 5 to the consolidated financial statements, using significant unobservable inputs and assumptions. Determining the fair value of these investments requires management to make judgments about the valuation methodologies to apply (i.e., market approach or income approach) and significant unobservable inputs and assumptions including, among others, discount rates, market quotes, and exit multiples.

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We identified the valuation of Level 3 investments as a critical audit matter given the significant judgments made by management to estimate the fair value of certain debt and equity positions. This required a high degree of auditor judgment and extensive audit effort, including the involvement of auditor employed valuation specialists, who possess specialized skill and knowledge, to evaluate the appropriateness of the valuation methodologies and significant unobservable inputs and assumptions.

Our audit procedures related to the valuation of Level 3 investments included, among others:

Obtaining an understanding, evaluating the design, and testing the operating effectiveness of controls over the Company’s investment valuation process, including those over the valuation methodologies and significant unobservable inputs and assumptions applied.

Selecting a sample of investments and, with assistance of auditor employed valuation specialists, evaluating the appropriateness of the methodology applied and reasonableness of significant unobservable inputs and assumptions, including comparable company multiples and discount rates. In several instances we developed independent fair value estimates which we compared against management’s conclusion.

Evaluating subsequent events, retrospective review, and other available information, considering whether this information corroborated or contradicted the Company’s conclusions.

/s/ Crowe LLP

Crowe LLP

As a result of affiliated fund relationships, we have served as the Company’s auditor since 2006.

Costa Mesa, California

June 9, 2025

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WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)


		December 31, 2024		December 31, 2023
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments	$	504,832	$	577,798
Non-controlled affiliate company investments		29,851		5,422
Controlled affiliate company investments		107,530		112,948
Total investments, at fair value (amortized cost $695,240 and $740,021, respectively)		642,213		696,168
Cash and cash equivalents		12,424		10,749
Restricted cash and cash equivalents		14,548		12,527
Restricted foreign currency (cost of $894 and $1,231, respectively)		864		1,211
Interest and dividend receivable		5,631		8,149
Amounts receivable on unsettled investment transactions		112		343
Escrow receivable		—		393
Prepaid expenses and other receivables		1,009		1,211
Unrealized appreciation on foreign currency forward contracts		20		—
Total assets	$	676,821	$	730,751

Liabilities
Debt (net of unamortized debt issuance costs of $2,876 and $4,564, respectively)	$	353,117	$	386,448
Distributions payable		8,949		8,949
Management fees payable		2,932		3,595
Incentive fees payable		17,848		10,470
Amounts payable on unsettled investment transactions		3,539		—
Interest payable		1,821		2,069
Accounts payable and accrued expenses		2,141		2,089
Advances received from unfunded credit facilities		340		316
Unrealized depreciation on foreign currency forward contracts		—		43
Total liabilities		390,687		413,979

Commitments and contingencies (See Note 8)

Net assets
Common stock, 23,243,088 and 23,243,088 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 shares authorized		23		23
Paid-in capital in excess of par		337,205		338,275
Accumulated earnings (losses)		(51,094)		(21,526)
Total net assets		286,134		316,772
Total liabilities and total net assets	$	676,821	$	730,751
Number of shares outstanding		23,243,088		23,243,088
Net asset value per share	$	12.31	$	13.63

See notes to the consolidated financial statements

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WhiteHorse Finance, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)


		Year ended December 31,
		2024		2023		2022
Investment income
From non-controlled/non-affiliate company investments
Interest income	$	66,402	$	78,493	$	67,617
Payment-in-kind income		6,175		3,960		2,114
Fee income		2,247		2,966		3,474
Dividend income		116		450		300
From non-controlled affiliate company investments
Interest income		93		—		13
Payment-in-kind income		705		314		326
Dividend income		—		84		321
From controlled affiliate company investments
Interest income		9,838		9,488		6,385
Payment-in-kind income		380		1,347		—
Dividend income		6,861		6,158		6,977
Total investment income		92,817		103,260		87,527
Expenses
Interest expense		27,899		29,915		21,940
Base management fees		12,127		14,684		15,600
Performance-based incentive fees		9,309		10,678		7,059
Administrative service fees		683		683		683
General and administrative expenses		4,440		3,622		3,963
Total expenses		54,458		59,582		49,245
Net investment income before excise tax		38,359		43,678		38,282
Excise tax		1,121		965		1,024
Net investment income after excise tax		37,238		42,713		37,258

Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses)
Non-controlled/non-affiliate company investments		(17,993)		309		(15,683)
Non-controlled affiliate company investments		—		(339)		1,725
Foreign currency transactions		(1)		950		(310)
Foreign currency forward contracts		13		27		—
Net realized gains (losses)		(17,981)		947		(14,268)
Net change in unrealized appreciation (depreciation)
Non-controlled/non-affiliate company investments		7,421		(7,871)		(3,505)
Non-controlled affiliate company investments		(7,775)		(5,608)		(5,239)
Controlled affiliate company investments		(9,213)		(8,490)		(447)
Translation of assets and liabilities in foreign currencies		1,098		(1,239)		1,887
Foreign currency forward contracts		63		(40)		(3)
Net change in unrealized appreciation (depreciation)		(8,406)		(23,248)		(7,307)
Net realized and unrealized gains (losses) on investments and foreign currency transactions		(26,387)		(22,301)		(21,575)
Net increase (decrease) in net assets resulting from operations	$	10,851	$	20,412	$	15,683

Per Common Share Data
Basic and diluted earnings (losses) per common share	$	0.47	$	0.88	$	0.68
Dividends and distributions declared per common share	$	1.79	$	1.55	$	1.47
Basic and diluted weighted average common shares outstanding		23,243,088		23,243,088		23,229,552

See notes to the consolidated financial statements

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WhiteHorse Finance, Inc.

Consolidated Statements of Changes in Net Assets

(in thousands, except share and per share data)


	Common Stock
	Shares		Par amount		Paid-in Capital in Excess of Par		Accumulated Earnings (Losses)		Total Net Assets
Balance as of December 31, 2021	23,162,667	$	23	$	339,161	$	10,567	$	349,751
Stock issued in connection with public offering	—		—		—		—		—
Stock issued in connection with at-the-market offering	16,678		—		125		—		125
Stock issued in connection with dividend reinvestment plan	63,743		—		978		—		978
Net increase in net assets resulting from operations:
Net investment income after excise tax	—		—		—		37,258		37,258
Net realized gains (losses) on investments and foreign currency transactions	—		—		—		(14,268)		(14,268)
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions	—		—		—		(7,307)		(7,307)
Distributions declared	—		—		—		(34,150)		(34,150)
Tax reclassification of stockholders’ equity	—		—		(1,024)		1,024		—
Balance as of December 31, 2022	23,243,088	$	23	$	339,240	$	(6,876)	$	332,387
Net increase in net assets resulting from operations:
Net investment income after excise tax	—		—		—		42,713		42,713
Net realized gains (losses) on investments and foreign currency transactions	—		—		—		947		947
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions	—		—		—		(23,248)		(23,248)
Distributions declared	—		—		—		(36,027)		(36,027)
Tax reclassification of stockholders’ equity	—		—		(965)		965		—
Balance as of December 31, 2023	23,243,088	$	23	$	338,275	$	(21,526)	$	316,772
Net increase in net assets resulting from operations:
Net investment income after excise tax	—		—		—		37,238		37,238
Net realized gains (losses) on investments and foreign currency transactions	—		—		—		(17,981)		(17,981)
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions	—		—		—		(8,406)		(8,406)
Distributions declared	—		—		—		(41,489)		(41,489)
Tax reclassification of stockholders’ equity	—		—		(1,070)		1,070		—
Balance as of December 31, 2024	23,243,088	$	23	$	337,205	$	(51,094)	$	286,134

See notes to the consolidated financial statements

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WhiteHorse Finance, Inc.

Consolidated Statements of Cash Flows

(in thousands)


	Year ended December 31,
		2024		2023		2022
Cash flows from operating activities
Net increase in net assets resulting from operations	$	10,851	$	20,412	$	15,683
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by / (used in) operating activities:
Payment-in-kind income		(7,260)		(5,738)		(2,355)
Net realized (gains) losses on investments		17,993		30		13,958
Net unrealized (appreciation) depreciation on investments		9,567		21,969		9,191
Net unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies		(1,098)		1,239		(1,887)
Net unrealized (appreciation) depreciation on foreign currency forward contracts		(63)		40		3
Accretion of discount		(4,111)		(4,493)		(5,626)
Amortization of deferred financing costs		1,688		1,599		1,541
Acquisition of investments		(207,283)		(145,008)		(280,089)
Proceeds from principal payments and sales of portfolio investments		186,251		128,199		239,622
Proceeds from sales of portfolio investments to STRS JV		59,190		69,419		83,459
Net changes in operating assets and liabilities:
Interest and dividend receivable		2,518		(335)		(293)
Escrow receivable		—		—		619
Prepaid expenses and other receivables		202		(37)		133
Amounts receivable on unsettled investment transactions		231		(60)		(283)
Amounts payable on unsettled investment transactions		3,539		—		—
Management fees payable		(663)		(265)		94
Incentive fees payable		7,378		4,852		(2,340)
Accounts payable and accrued expenses		52		(240)		(109)
Interest payable		(248)		(705)		687
Advances received from unfunded credit facilities		24		(509)		(14)
Net cash provided by / (used in) operating activities		78,758		90,369		71,994

Cash flows from financing activities
Proceeds from notes issued		—		34,500		—
Proceeds from issuance of common stock, net of offering costs		—		—		125
Borrowings		119,315		132,248		140,527
Repayments of debt		(153,222)		(222,099)		(175,417)
Deferred financing costs		—		(1,445)		(580)
Distributions paid to common stockholders, net of distributions reinvested		(41,489)		(35,329)		(33,143)
Net cash provided by / (used in) financing activities		(75,396)		(92,125)		(68,488)
Effect of exchange rate changes on cash		(13)		(21)		290
Net change in cash, cash equivalents and restricted cash		3,349		(1,777)		3,796
Cash, cash equivalents and restricted cash at beginning of period		24,487		26,264		22,468
Cash, cash equivalents and restricted cash at end of period	$	27,836	$	24,487	$	26,264

Supplemental and non-cash disclosure of cash flow information:
Interest paid	$	26,459	$	29,021	$	19,712
Taxes, including excise tax, paid during the year		1,407		1,103		1,184
Supplemental noncash disclosures:
Distributions declared	$	41,489	$	36,027	$	34,150
Distributions reinvested		—		—		978
Non-cash exchanges of investments		—		5,520		25,000

See notes to the consolidated financial statements

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WhiteHorse Finance, Inc.

Consolidated Statements of Cash Flows

(in thousands)

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of assets and liabilities that sum to the total of the same amounts presented in the consolidated statements of cash flows:


	December 31,
	2024		2023		2022
Cash and cash equivalents	$	12,424	$	10,749	$	9,508
Restricted cash and cash equivalents		14,548		12,527		14,683
Restricted foreign currency		864		1,211		2,073
Total cash and cash equivalents, restricted cash and cash equivalents and restricted foreign currency presented in consolidated statements of cash flows	$	27,836	$	24,487	$	26,264

See notes to the consolidated financial statements

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WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Debt Investments
Advertising
Avision Holdings, LLC (d/b/a Avision Sales Group)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	10.48%	05/31/24	12/15/26	658	$	648	$	652	0.2	%
Avision Holdings, LLC (d/b/a Avision Sales Group)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	10.48%	05/31/24	12/15/26	553		545		558	0.2
PLTFRM Companies, LLC	First Lien Secured Term Loan	3.00%	SOFR	9.00%	13.36% (12.36% Cash + 1.00% PIK)	01/29/24	01/29/29	7,950		7,757		8,188	3.0
PLTFRM Companies, LLC	First Lien Secured Revolving Loan	3.00%	SOFR	9.00%	13.34% (12.34% Cash + 1.00% PIK)	01/29/24	01/29/29	889		867		916	0.3
Trailhead Media LLC	First Lien Secured Term Loan	1.00%	SOFR	5.50%	9.82% (9.07% Cash + 0.75% PIK)	12/30/24	12/28/29	6,648		6,548		6,548	2.3
Trailhead Media LLC⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.50%	9.82% (9.07% Cash + 0.75% PIK)	12/30/24	12/28/29	—		—		—	—
Trailhead Media LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	5.50%	9.82% (9.07% Cash + 0.75% PIK)	12/30/24	12/28/29	—		—		—	—
										16,365		16,862	6.0
Air Freight & Logistics
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	7.60%	11.96%	12/16/22	12/18/28	8,994		8,811		8,857	3.1
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.50%	11.95%	12/16/22	12/18/28	453		444		447	0.2
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)	First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.96% (5.48% Cash + 7.48% PIK)	07/12/21	07/12/26	10,510		10,449		9,438	3.2
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)	First Lien Secured Revolving Loan	1.00%	SOFR	8.50%	13.00% (11.00% Cash + 2.00% PIK)	07/12/21	07/12/26	1,182		1,175		1,061	0.4
Transervice Holdings, Inc. (d/b/a Transervice Logistics, Inc.)	First Lien Secured Term Loan	2.00%	SOFR	7.25%	11.71%	06/29/23	06/29/28	8,663		8,481		8,715	3.0
										29,360		28,518	9.9
Application Software
Alvaria Holdco (Cayman) (d/b/a Aspect Software, Inc.)⁽¹⁵⁾⁽²⁶⁾	First Lien Secured Term Loan	0.75%	SOFR	7.50%	11.96% (5.46% Cash + 6.50% PIK)	03/20/24	05/08/28	1,782		1,615		1,456	0.5
Alvaria Holdco (Cayman) (d/b/a Aspect Software, Inc.)⁽¹⁵⁾⁽¹⁷⁾⁽²⁶⁾	First Lien Secured Term Loan	0.75%	SOFR	7.50%	11.96% (6.46% Cash + 5.50% PIK)	03/20/24	05/08/28	1,178		1,029		451	0.2
Alvaria Holdco (Cayman) (d/b/a Aspect Software, Inc.)⁽¹⁵⁾⁽¹⁷⁾⁽²⁶⁾	First Lien Secured Term Loan	0.75%	SOFR	7.00%	11.46%	03/20/24	05/08/28	9,600		9,318		3,990	1.4
Alvaria Holdco (Cayman) (d/b/a Aspect Software, Inc.)⁽¹⁵⁾⁽¹⁷⁾⁽²⁶⁾	First Lien Secured Term Loan	0.75%	SOFR	7.00%	11.46%	03/20/24	05/08/28	2,400		2,330		74	—
MBS Highway, LLC	First Lien Secured Term Loan	1.00%	SOFR	8.50%	13.20% (12.70% Cash + 0.50% PIK)	10/13/22	10/13/27	9,286		9,157		9,212	3.2
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)⁽¹⁷⁾	First Lien Secured Term Loan	1.00%	SOFR	7.00%	12.40%	06/14/19	06/28/24	3,140		3,140		1,763	0.6
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)⁽¹²⁾⁽¹⁷⁾	First Lien Secured Revolving Loan	1.00%	Base Rate	6.84%	12.78%	06/14/19	06/28/24	301		301		169	0.1
UserZoom Technologies, Inc. (d/b/a UserZoom, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	7.50%	12.75%	01/12/23	04/05/29	9,819		9,618		9,809	3.4
										36,508		26,924	9.4
Broadcasting
Coastal Television Broadcasting Group LLC	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.96%	12/30/21	12/30/26	7,879		7,808		7,832	2.7
Coastal Television Broadcasting Group LLC^⁽^⁷^⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.96%	12/30/21	12/30/26	—		—		1	—
										7,808		7,833	2.7
Broadline Retail
Luxury Brand Holdings, Inc. (d/b/a Ross-Simons, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.11%	12/04/20	06/04/26	4,580		4,556		4,580	1.6
										4,556		4,580	1.6
Building Products

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Trimlite Buyer LLC (d/b/a Trimlite LLC)⁽⁵⁾⁽¹³⁾⁽²⁵⁾	First Lien Secured Term Loan	1.00%	CORRA	6.50%	9.99%	07/27/21	07/27/27	18,984		15,006		13,206	4.6
										15,006		13,206	4.6
Commodity Chemicals
FGI Acquisition Corp. (d/b/a Flexitallic Group SAS)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.98%	10/28/19	10/29/26	16,026	$	15,765	$	16,026	5.6	%
										15,765		16,026	5.6
Construction & Engineering
Kelso Industries LLC	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.09%	12/26/24	12/31/29	3,611		3,539		3,539	1.2
Kelso Industries LLC⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.75%	10.09%	12/26/24	12/31/29	—		—		—	—
										3,539		3,539	1.2
Construction Materials
Claridge Products and Equipment, LLC	First Lien Secured Term Loan	1.00%	SOFR	8.75%	13.21% (10.96% Cash + 2.25% PIK)	12/30/20	12/30/25	5,711		5,690		5,085	1.8
Claridge Products and Equipment, LLC^⁽^⁷^⁾⁽^¹²^⁾	First Lien Secured Revolving Loan	1.00%	Base Rate	8.31%	14.13% (11.88% Cash + 2.25% PIK)	12/30/20	12/30/25	632		630		555	0.2
										6,320		5,640	2.0
Data Processing & Outsourced Services
BUSA Acquisition Co. (d/b/a BankCard USA Merchant Services Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.77%	04/04/24	03/30/29	7,779		7,580		7,691	2.7
BUSA Acquisition Co. (d/b/a BankCard USA Merchant Services Inc.)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.81%	04/04/24	03/30/29	459		447		461	0.2
Future Payment Technologies, L.P.	First Lien Secured Term Loan	1.00%	SOFR	8.25%	12.90%	12/23/16	12/05/25	20,420		20,382		20,420	7.1
										28,409		28,572	10.0
Distributors
Foodservices Brand Group, LLC (d/b/a Crown Brands Group)	First Lien Secured Term Loan	1.00%	SOFR	8.00%	12.62%	11/22/22	12/09/25	357		357		321	0.1
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)	First Lien Secured Term Loan	1.00%	SOFR	7.25%	11.71%	12/22/23	12/22/28	9,443		9,255		9,399	3.3
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.25%	11.71%	12/22/23	12/22/28	645		632		642	0.2
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)⁽⁷⁾⁽¹²⁾	First Lien Secured Revolving Loan	1.00%	Base Rate	6.92%	12.39%	12/22/23	12/22/28	326		319		328	0.1
										10,563		10,690	3.7
Diversified Chemicals
Chase Products Co. (f/k/a Starco)⁽⁶⁾⁽²¹⁾	Second Lien Secured Term Loan	N/A	N/A	12.00%	12.00% PIK	03/16/23	03/16/28	3,342		3,342		3,342	1.2
										3,342		3,342	1.2
Diversified Support Services
NNA Services, LLC	First Lien Secured Term Loan	1.00%	SOFR	7.25%	11.73%	08/27/21	08/27/26	9,125		9,087		8,941	3.1
Quest Events, LLC	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.90%	09/13/24	09/30/26	480		472		473	0.2
										9,559		9,414	3.3
Education Services
EducationDynamics, LLC	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.96%	09/15/21	09/15/27	13,089		12,989		12,449	4.3
EducationDynamics, LLC^⁽^⁷^⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.96%	09/15/21	09/15/27	—		—		(51)	—
MSI Information Services, Inc.	First Lien Secured Term Loan	1.00%	SOFR	9.75%	14.23% PIK	04/25/22	04/24/26	8,746		8,552		7,871	2.8
MSI Information Services, Inc.^⁽^¹²^⁾	First Lien Secured Revolving Loan	1.00%	Base Rate	8.82%	16.11% PIK	04/25/22	04/24/26	1,050		1,043		945	0.3
										22,584		21,214	7.4
Electric Utilities
CleanChoice Energy, Inc.	First Lien Secured Term Loan	1.00%	SOFR	7.59%	12.39%	10/12/21	10/12/26	15,955		15,802		16,032	5.6
										15,802		16,032	5.6
Health Care Facilities
Bridgepoint Healthcare, LLC	First Lien Secured Term Loan	1.00%	SOFR	8.00%	12.46%	10/05/21	10/05/26	8,517		8,457		8,429	2.9
Bridgepoint Healthcare, LLC	First Lien Secured Revolving Loan	1.00%	SOFR	8.00%	12.46%	10/05/21	10/05/26	238		237		231	0.1

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
										8,694		8,660	3.0
Health Care Services
Lab Logistics, LLC	First Lien Secured Term Loan	1.00%	SOFR	7.25%	11.71%	10/16/19	12/31/25	5,383	$	5,381	$	5,383	1.9	%
Lab Logistics, LLC	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.25%	11.71%	10/16/19	12/31/25	5,020		5,020		5,020	1.8
Lab Logistics, LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.25%	11.71%	09/17/24	12/31/25	437		437		437	0.2
Maxor Acquisition, Inc. (d/b/a Maxor National Pharmacy Services, LLC)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	10.46%	12/27/24	03/01/29	947		938		938	0.3
W&A Intermediate Co., LLC (d/b/a Wakefield & Associates, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.25%	10.58%	08/01/24	08/01/29	7,689		7,548		7,555	2.6
W&A Intermediate Co., LLC (d/b/a Wakefield & Associates, LLC)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.25%	10.58%	08/01/24	08/01/29	—		—		2	—
W&A Intermediate Co., LLC (d/b/a Wakefield & Associates, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	10.58%	08/01/24	08/01/29	258		253		254	0.1
										19,577		19,589	6.9
Health Care Supplies
ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)	First Lien Secured Term Loan	0.75%	SOFR	7.50%	11.98%	02/23/22	02/23/28	20,409		20,142		19,535	6.8
										20,142		19,535	6.8
Heavy Electrical Equipment
Power Service Group CR Acquisition Inc. (d/b/a Power Plant Services)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	11.23%	06/25/21	06/25/26	8,697		8,642		8,784	3.1
Power Service Group CR Acquisition Inc. (d/b/a Power Plant Services)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.75%	11.23%	07/11/22	06/25/26	1,340		1,329		1,354	0.5
										9,971		10,138	3.6
Home Furnishings
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.28%	10/12/21	10/12/26	22,590		22,401		22,441	7.8
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.28%	10/12/21	10/12/26	—		—		5	—
Whitestone Home Furnishings, LLC (d/b/a Saatva, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	10.46%	11/06/23	08/20/26	2,930		2,887		2,930	1.0
										25,288		25,376	8.8
Household Appliances
Token Buyer, Inc. (d/b/a Therm-O-Disc, Inc.)	First Lien Secured Term Loan	0.50%	SOFR	6.00%	10.74%	05/26/22	05/31/29	7,070		6,709		5,658	2.0
BBQ Buyer, LLC (d/b/a BBQ Guys)	First Lien Secured Term Loan	1.50%	SOFR	10.50%	14.96% (12.96% Cash + 2.00% PIK)	08/28/20	08/28/25	13,013		12,972		12,955	4.5
BBQ Buyer, LLC (d/b/a BBQ Guys)	First Lien Secured Delayed Draw Loan	1.50%	SOFR	10.50%	14.96% (12.96% Cash + 2.00% PIK)	12/02/21	08/28/25	2,654		2,645		2,642	0.9
										22,326		21,255	7.4
Household Products
The Kyjen Company, LLC (d/b/a Outward Hound)	First Lien Secured Term Loan	1.00%	SOFR	7.25%	12.05% (11.30% Cash + 0.75% PIK)	04/05/21	04/05/26	11,350		11,309		10,895	3.8
The Kyjen Company, LLC (d/b/a Outward Hound)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.97% (10.22% Cash + 0.75% PIK)	04/05/21	04/05/26	798		795		761	0.3
										12,104		11,656	4.1
Industrial Machinery & Supplies & Components
W Electric Intermediate Holdings, LLC (d/b/a Westinghouse Electric Corporation)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.86% (9.86% Cash + 1.00% PIK)	08/15/24	08/15/29	12,322		12,124		12,216	4.3
W Electric Intermediate Holdings, LLC (d/b/a Westinghouse Electric Corporation)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.86% (9.86% Cash + 1.00% PIK)	08/15/24	08/15/29	—		—		9	—
										12,124		12,225	4.3
Integrated Telecommunication Services

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Patagonia Holdco LLC (d/b/a Lumen LATAM)	First Lien Secured Term Loan	0.50%	SOFR	5.75%	10.27%	08/05/22	08/01/29	14,296		12,602		13,135	4.6
										12,602		13,135	4.6
Interactive Media & Services
Zephyr Buyer, L.P. (d/b/a The Weather Company, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.83%	01/31/24	01/31/30	14,087		13,789		14,166	5.0
Zephyr Buyer, L.P. (d/b/a The Weather Company, LLC)^⁽^⁷^⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.83%	01/31/24	01/31/30	—		—		48	—
										13,789		14,214	5.0
Leisure Facilities
Camarillo Fitness Holdings, LLC (f/k/a Honors Holdings, LLC)⁽⁶⁾⁽¹⁷⁾^⁽^²⁴^⁾	First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.98% PIK	09/25/24	09/25/29	11,738	$	10,269	$	10,492	3.7	%
Lift Brands, Inc.	First Lien Secured Term Loan A	1.00%	SOFR	7.50%	11.96%	06/29/20	06/29/25	5,461		5,453		5,461	1.9
Lift Brands, Inc.	First Lien Secured Term Loan B	N/A	N/A	9.50%	9.50% PIK	06/29/20	06/29/25	1,594		1,592		1,594	0.6
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁹⁾	First Lien Secured Term Loan C	N/A	N/A	9.50%	9.50% PIK	06/29/20	N/A	1,822		1,819		1,790	0.6
										19,133		19,337	6.8
Leisure Products
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾	Super Senior Priority First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.96% PIK	05/02/24	05/28/26	2,485		2,374		373	0.1
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾	Super Senior Priority First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.96% PIK	01/31/24	05/28/26	1,287		1,230		—	—
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾	Super Priority First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.96% PIK	07/25/23	05/28/26	2,191		2,094		—	—
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾⁽²⁰⁾	Priority First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.96% PIK	12/22/22	05/28/26	5,876		5,105		—	—
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾⁽²⁰⁾	First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.96% PIK	05/28/21	05/28/26	10,859		8,720		—	—
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾⁽²⁰⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	8.50%	12.96% PIK	01/25/22	05/28/26	1,823		1,458		—	—
Surge Amuze Holdings Inc. (d/b/a Amuze Products II, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	10.44%	09/06/24	09/06/29	5,737		5,629		5,643	2.0
Surge Amuze Holdings Inc. (d/b/a Amuze Products II, Inc.)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	10.46%	09/06/24	09/06/29	584		573		577	0.2
Surge Amuze Holdings Inc. (d/b/a Amuze Products II, Inc.)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	Prime	5.00%	12.50%	09/06/24	09/06/29	585		574		576	0.2
Leviathan Intermediate Holdco, LLC	First Lien Secured Term Loan	1.50%	SOFR	7.50%	11.98%	12/27/22	12/27/27	13,211		12,981		13,312	4.6
Leviathan Intermediate Holdco, LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.50%	SOFR	7.50%	11.98%	12/27/22	12/27/27	—		—		10	—
Playmonster Group LLC⁽⁶⁾⁽¹⁹⁾	Priority First Lien Secured Term Loan	1.00%	SOFR	6.75%	11.41% PIK	12/09/22	06/08/26	1,289		1,275		1,172	0.4
Playmonster Group LLC⁽⁶⁾⁽¹⁷⁾⁽¹⁹⁾	First Lien Secured Term Loan	1.00%	SOFR	9.00%	13.74% PIK	06/07/21	06/08/26	4,890		3,661		1,635	0.6
										45,674		23,298	8.1
Life Sciences Tools & Services
LSCS Holdings, Inc. (d/b/a Eversana Life Science Services, LLC)	Second Lien Secured Term Loan	0.50%	SOFR	8.00%	12.47%	11/23/21	12/16/29	5,000		4,953		5,000	1.7
										4,953		5,000	1.7
Packaged Foods & Meats
PANOS Brands, LLC	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.13%	05/14/24	05/14/29	4,068		3,997		4,054	1.4
PANOS Brands, LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	5.75%	10.15%	05/14/24	05/14/29	27		27		33	—
										4,024		4,087	1.4
Paper Products
M2S Group Intermediate Holdings, Inc. (d/b/a M2S Group Holdings Inc.)⁽¹²⁾	First Lien Secured Term Loan	0.50%	Base Rate	4.73%	9.10%	08/22/24	08/25/31	9,770		9,119		9,453	3.3
										9,119		9,453	3.3
Real Estate Services
Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.96%	11/16/21	11/16/27	10,424		10,325		9,905	3.5
Monarch Collective Holdings, LLC	First Lien Secured Term Loan	1.50%	SOFR	6.75%	11.08%	01/10/24	01/10/29	9,306		9,119		9,223	3.2
Monarch Collective Holdings, LLC	First Lien Secured Delayed Draw Loan	1.50%	SOFR	6.75%	11.16%	01/10/24	01/10/29	1,596		1,572		1,582	0.6

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
										21,016		20,710	7.3
Research & Consulting Services
M&M OpCo, LLC (d/b/a Escalent, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	8.00%	12.43%	04/07/23	04/09/29	4,927		4,823		4,922	1.7
M&M OpCo, LLC (d/b/a Escalent, Inc.)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	8.00%	12.43%	04/07/23	04/09/29	—		—		5	—
										4,823		4,927	1.7
Security & Alarm Services
Event Services America, Inc. (d/b/a Contemporary Services Corporation)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	11.11%	01/31/24	01/31/29	7,000		6,857		7,070	2.5
										6,857		7,070	2.5
Specialized Consumer Services
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)	First Lien Secured Term Loan	1.00%	SOFR	8.00%	12.46%	12/02/22	12/02/27	5,076	$	4,988	$	5,063	1.8	%
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	8.00%	12.46%	12/02/22	12/02/27	1,669		1,641		1,672	0.6
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	8.00%	12.46%	12/02/22	12/02/27	—		—		13	—
										6,629		6,748	2.4
Specialized Finance
WHF STRS Ohio Senior Loan Fund LLC^{(4)(5)(7)(9)(14)(18)}	Subordinated Note	N/A	SOFR	6.50%	10.83%	07/19/19	N/A	84,416		84,416		84,416	29.5
										84,416		84,416	29.5
Systems Software
Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC)⁽⁵⁾⁽⁶⁾⁽⁷⁾⁽²²⁾⁽²³⁾⁽²⁶⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	8.00%	12.67% PIK	01/03/24	01/04/27	689		677		1,247	0.4
Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC)⁽⁶⁾⁽²²⁾⁽²⁶⁾	Unsecured Loan	N/A	N/A	9.00%	9.00% PIK	01/03/24	07/02/29	581		569		581	0.2
Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC)⁽⁶⁾⁽²²⁾⁽²⁶⁾	Unsecured Loan	N/A	N/A	9.00%	9.00% PIK	01/03/24	07/02/29	594		583		594	0.2
LogicMonitor, Inc.	First Lien Secured Term Loan	0.75%	SOFR	5.50%	9.99%	11/19/24	11/19/31	6,220		6,144		6,144	2.1
LogicMonitor, Inc.⁽⁷⁾	First Lien Secured Revolving Loan	0.75%	SOFR	5.50%	9.99%	11/19/24	11/19/31	—		—		—	—
Ribbon Communications Operating Company, Inc. (d/b/a Ribbon Communications Inc.)⁽⁵⁾	First Lien Secured Term Loan	1.00%	SOFR	6.25%	10.59%	06/21/24	06/21/29	8,756		8,600		8,692	3.0
Ribbon Communications Operating Company, Inc. (d/b/a Ribbon Communications Inc.)⁽⁵⁾⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	10.59%	06/21/24	06/21/29	—		—		9	—
										16,573		17,267	5.9
Technology Hardware, Storage & Peripherals
Telestream Holdings Corporation⁽¹⁷⁾	First Lien Secured Term Loan	1.00%	SOFR	9.75%	14.21% PIK	10/15/20	10/15/25	18,547		17,496		17,063	5.9
Telestream Holdings Corporation^⁽^⁷^⁾⁽¹⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	9.75%	14.21% PIK	10/15/20	10/15/25	1,116		1,051		1,009	0.4
										18,547		18,072	6.3
Transaction & Payment Processing Services
TOT Group, Inc. (d/b/a Netevia Group LLC)	First Lien Secured Term Loan	1.00%	SOFR	7.50%	11.83%	06/28/24	06/28/29	8,239		8,074		8,067	2.8
TOT Group, Inc. (d/b/a Netevia Group LLC)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.50%	11.83%	06/28/24	06/28/29	—		—		(1)	—
TOT Group, Inc. (d/b/a Netevia Group LLC)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.50%	11.83%	06/28/24	06/28/29	—		—		—	—
										8,074		8,066	2.8

Total Debt Investments									$	631,941	$	596,626	208.4	%

Equity Investments⁽²⁷⁾
Advertising
Avision Holdings, LLC (d/b/a Avision Sales Group)⁽⁴⁾	Class A LLC Interests	N/A	N/A	N/A	N/A	12/15/21	N/A	200	$	287	$	577	0.2	%
ImageOne Industries, LLC^⁽^⁴^⁾	Common A Units	N/A	N/A	N/A	N/A	09/20/19	N/A	235		10		12	—
										297		589	0.2
Air Freight & Logistics

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Motivational CIV, LLC (d/b/a Motivational Fulfillment)⁽⁴⁾	Class B Units	N/A	N/A	N/A	N/A	07/12/21	N/A	1,250		1,250		—	—
										1,250		—	—
Broadline Retail
Ross-Simons Topco, LP (d/b/a Ross-Simons, Inc.)⁽⁴⁾	Preferred Units	N/A	N/A	8.00%	8.00% PIK	12/04/20	N/A	600		514		756	0.3
										514		756	0.3
Building Products
PFB Holding Company, LLC (d/b/a PFB Corporation)⁽⁴⁾⁽¹³⁾	Class A Units	N/A	N/A	N/A	N/A	12/17/21	N/A	1		24		—	—
										24		—	—
Construction & Engineering
Sterling Pure Blocker, LLC (d/b/a Banner Industries, Inc.)⁽⁴⁾	Class B Units	N/A	N/A	N/A	N/A	12/01/23	N/A	404		404		388	0.1
										404		388	0.1
Diversified Chemicals
Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽²¹⁾	Common Units	N/A	N/A	N/A	N/A	03/16/23	N/A	—	$	—	$	—	—	%
Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽²¹⁾	Preferred Units	N/A	N/A	14.00%	14.00% PIK	03/16/23	N/A	—		4,537		1,657	0.6
										4,537		1,657	0.6
Diversified Support Services
Quest Events, LLC⁽⁴⁾	Common Units	N/A	N/A	N/A	N/A	12/28/18	N/A	333		376		149	0.1
										376		149	0.1
Education Services
EducationDynamics, LLC d/b/a EDDY Enterprises, LLC⁽⁴⁾	Senior Preferred Units	N/A	N/A	N/A	N/A	09/15/21	N/A	167		167		100	—
Eddy Acquisitions, LLC (d/b/a EducationDynamics, LLC)⁽⁴⁾⁽⁸⁾	Preferred Units	N/A	N/A	12.00%	12.00%	09/15/21	N/A	167		167		—	—
										334		100	—
Environmental & Facilities Services
BPII-JL Group Holdings LP (d/b/a Juniper Landscaping Holdings LLC)⁽⁴⁾	Class A Units	N/A	N/A	N/A	N/A	12/29/21	N/A	90		942		1,400	0.5
										942		1,400	0.5
Food Distributors
Twin Ridge CRS, LP (d/b/a CRS OneSource)⁽⁴⁾	Class A Common Units	N/A	N/A	N/A	N/A	05/10/24	N/A	63		317		350	0.1
										317		350	0.1
Household Appliances
BBQ Buyer, LLC (d/b/a BBQGuys)⁽⁴⁾	Shares	N/A	N/A	N/A	N/A	08/28/20	N/A	1,100		1,100		907	0.3
										1,100		907	0.3
Industrial Machinery & Supplies & Components
BL Products Parent, LP (d/b/a Bishop Lifting Products, Inc.)⁽⁴⁾	Class A Units	N/A	N/A	N/A	N/A	02/01/22	N/A	733		788		1,012	0.4
										788		1,012	0.4
Interactive Media & Services
What If Media Group, LLC^⁽^⁴^⁾	Common Units	N/A	N/A	N/A	N/A	07/02/21	N/A	3,081		851		1,756	0.6
										851		1,756	0.6
IT Consulting & Other Services
CX Holdco LLC (d/b/a Cennox Inc.)⁽⁴⁾	Common Units	N/A	N/A	N/A	N/A	05/04/21	N/A	1,068		1,116		2,232	0.8
Keras Holdings, LLC (d/b/a KSM Consulting, LLC)⁽⁴⁾	Shares	N/A	N/A	N/A	N/A	12/31/20	N/A	496		496		779	0.3
Vistria Blocked MGT Investor, LP (d/b/a MGT Consulting Group)⁽⁴⁾	Series A Units	N/A	N/A	N/A	N/A	04/10/23	N/A	—		314		493	0.2
										1,926		3,504	1.3
Leisure Facilities
H.I.G. Camarillo, L.P. (f/k/a Honors Holdings, LLC)⁽⁴⁾⁽⁶⁾^⁽^²⁴^⁾	Limited Partner Interests	N/A	N/A	N/A	N/A	09/25/24	N/A	—		—		—	—

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁴⁾	Class A Common Stock	N/A	N/A	N/A	N/A	06/29/20	N/A	2		1,941		173	0.1
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁴⁾	Warrants	N/A	N/A	N/A	N/A	06/29/20	N/A	1		793		70	—
										2,734		243	0.1
Leisure Products
American Crafts Holdings, LLC (d/b/a American Crafts, LC)⁽⁴⁾⁽¹⁴⁾⁽²⁰⁾	Warrants	N/A	N/A	N/A	N/A	12/22/22	12/22/32	—		—		—	—
New American Crafts Holdings, LLC (d/b/a American Crafts, LC)⁽⁴⁾⁽¹⁴⁾⁽²⁰⁾	Class A Units	N/A	N/A	N/A	N/A	03/16/23	N/A	1		—		—	—
Playmonster Group Equity, Inc. (d/b/a Playmonster Group LLC)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽¹⁹⁾	Preferred Stock	N/A	N/A	14.00%	14.00% PIK	01/24/22	N/A	36		3,600		—	—
Playmonster Group Equity, Inc. (d/b/a Playmonster Group LLC)⁽⁴⁾⁽⁶⁾⁽¹⁹⁾	Common Stock	N/A	N/A	N/A	N/A	01/24/22	N/A	72		460		—	—
										4,060		—	—
Paper & Plastic Packaging Products & Materials
Max Solutions Inc.^⁽^⁴^⁾	Common Stock	N/A	N/A	N/A	N/A	09/29/22	N/A	4	$	400	$	—	—	%
										400		—	—
Real Estate Services
Camp Facility Services Parent, LLC (d/b/a Camp Construction Services, Inc.)⁽⁴⁾⁽⁸⁾	Preferred Units	N/A	N/A	10.00%	10.00% PIK	11/16/21	N/A	15		840		162	0.1
										840		162	0.1
Research & Consulting Services
Merriman Holdings LP (d/b/a Escalent, Inc.)⁽⁴⁾	Class A Units	N/A	N/A	N/A	N/A	04/07/23	N/A	327		333		368	0.1
										333		368	0.1
Specialized Consumer Services
Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾⁽⁸⁾	Preferred Stock	N/A	N/A	8.00%	8.00% PIK	12/02/22	N/A	200		200		242	0.1
Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾	Common Stock	N/A	N/A	N/A	N/A	12/02/22	N/A	400		400		132	—
										600		374	0.1
Specialized Finance
WHF STRS Ohio Senior Loan Fund^{(4)(5)(7)(14)(18)}	LLC Interests	N/A	N/A	N/A	N/A	07/19/19	N/A	21,104		21,104		22,741	7.9
										21,104		22,741	7.9
Systems Software
Arcserve Cayman GP LLC (d/b/a Arcserve (USA), LLC)⁽⁴⁾⁽⁶⁾⁽²²⁾⁽²⁶⁾	Common Units	N/A	N/A	N/A	N/A	01/03/24	N/A	663		—		—	—
Arcserve Cayman Topco LP (d/b/a Arcserve (USA), LLC)⁽⁴⁾⁽⁶⁾⁽²²⁾⁽²⁶⁾	Common Units	N/A	N/A	N/A	N/A	01/03/24	N/A	663		19,568		9,131	3.2
										19,568		9,131	3.2

Total Equity Investments									$	63,299	$	45,587	16.0	%

Total Investments									$	695,240	$	642,213	224.4	%

Money market funds (included in cash and cash equivalents and restricted cash and cash equivalents)
Goldman Sachs Money Market Fund (CUSIP: 38141W315)⁽¹⁶⁾					4.33%				$	837	$	837	0.3	%
Invesco Treasury Money Market Fund (CUSIP: X9USDINVE)⁽¹⁶⁾					3.83%					12,412		12,412	4.3

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Total Money Market Funds										13,249		13,249	4.6
Total investments and money market funds									$	708,489	$	655,462	229.0	%

Forward Currency Contracts


Counterparty	Currency to be sold			Currency to be purchased			Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	796	CAD	$	574	USD	2/4/25	$	20	$	—
Total								$	20	$	—

(1)	Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), provide collateral for the Company’s credit facility, and are domiciled in the United States.

(2)

The investments bear interest at a rate that may be determined by reference to the Secured Overnight Financing Rate (“SOFR”), the Canadian Overnight Repo Rate Average (“CORRA”), the Sterling Overnight Index Average (“SONIA”), or the U.S. Prime Rate (“Prime”), all of which may reset monthly, quarterly or semiannually.

(3)	The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

(4)	The investment or a portion of the investment does not provide collateral for the Company’s credit facility.

(5)

Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represented 80.7% of total assets as of the date of the consolidated schedule of investments.

(6)	Investment is a non-controlled/affiliate investment as defined by the 1940 Act. See Note 4.

(7)	The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of December 31, 2024. See Note 8.

(8)	Preferred equity investment is a non-income producing security.

(9)	Security is perpetual with no defined maturity date.

(10)	Except as otherwise noted, all of the Company’s portfolio company investments, which as of the date of the consolidated schedule of investments represented 224.4% of the Company’s net assets or 94.9% of the Company’s total assets, are subject to legal restrictions on sales.

(11)	The fair value of each investment was determined using significant unobservable inputs. See Note 5.

(12)	The investment was comprised of two contracts, which were indexed to Prime and a different base rate, SOFR, SONIA or CORRA.

(13)	Principal amount is non-USD denominated and is based in Canadian dollars.

(14)	Investment is a controlled affiliate investment as defined by the 1940 Act. See Note 4.

(15)

Investment is structured as a unitranche loan in which the Company may receive additional interest on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

See notes to the consolidated financial statements

Table of Contents

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2024

(in thousands)

(16)	The rate shown is the annualized seven-day yield as of December 31, 2024.

(17)	The investment is on non-accrual status.

(18)

On January 14, 2019, the Company entered into an agreement with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law (“STRS Ohio”), to create WHF STRS Ohio Senior Loan Fund, LLC (“STRS JV”), a joint venture, which invests primarily in senior secured first and second lien term loans.

(19)

On January 24, 2022, as part of a restructuring agreement between the Company and PlayMonster LLC, the Company’s first lien secured term loan and delayed draw loan investments to PlayMonster LLC were converted into a new first lien secured term loan, preferred stock and common stock of Playmonster Group LLC. See Note 4.

(20)	In March 2023, as a result of a restructuring agreement between the Company and American Crafts, LC, the Company’s investments are controlled affiliate investments, as defined by the 1940 Act. See Note 4.

(21)

In March 2023, as part of a restructuring agreement between the Company and Sklar Holdings, Inc (d/b/a Starco), the Company’s first lien secured term loan investment was converted into a new second lien secured term loan to Chase Products Co. (f/k/a Starco) and preferred units and common units of Pressurized Holdings, LLC (f/k/a Starco). See Note 4.

(22)

In January 2024, as part of a restructuring agreement between the Company and Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC), the Company’s first lien secured term loan and priority first lien delayed draw loan investments in Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC), converted into a new first lien secured delayed draw loan and unsecured notes in Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC) and common equity of Arcserve Cayman GP LLC (d/b/a Arcserve (USA), LLC), and Arcserve Cayman Topco LP (d/b/a Arcserve (USA), LLC). See Note 4.

(23)	As part of the restructuring agreement between the Company and Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC), fair value on the first lien secured delayed draw loan includes a preferred return that is earned on capital funded.

(24)

In September 2024, as part of a restructuring agreement between the Company and Honors Holdings, LLC (d/b/a Orange Theory), the Company’s first lien secured term loan, delayed draw loan and revolver investments to Honors Holdings, LLC (d/b/a Orange Theory) were converted into a new first lien secured term loan of Camarillo Fitness Holdings, LLC (f/k/a Honors Holdings, LLC) and common equity of H.I.G. Camarillo, L.P. (f/k/a Honors Holdings, LLC). See Note 4.

(25)	The issuer is domiciled in Canada.

(26)	The issuer is domiciled in Cayman Islands.

(27)	Ownership of certain equity investments may occur through a holding company or partnership.

See notes to the consolidated financial statements

Table of Contents

WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Debt Investments
Air Freight & Logistics
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	7.00%	12.46%	12/16/22	12/18/28	4,804	$	4,685	$	4,738	1.5	%
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.00%	12.46%	12/16/22	12/18/28	—		—		7	—
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)	First Lien Secured Term Loan	1.00%	SOFR	7.25%	12.71% (11.96% Cash + 0.75% PIK)	07/12/21	07/12/26	9,989		9,888		8,790	2.8
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.25%	12.71% (11.96% Cash + 0.75% PIK)	07/12/21	07/12/26	473		468		338	0.1
Transervice Holdings, Inc. (d/b/a Transervice Logistics, Inc.)	First Lien Secured Term Loan	2.00%	SOFR	7.50%	12.96%	06/29/23	06/29/28	8,888		8,648		8,743	2.8
										23,689		22,616	7.2
Application Software
Atlas Purchaser, Inc. (d/b/a Aspect Software, Inc.)	First Lien Secured Term Loan	0.75%	SOFR	5.25%	10.88%	08/29/22	05/08/28	3,066		2,675		2,269	0.7
Atlas Purchaser, Inc. (d/b/a Aspect Software, Inc.)	Second Lien Secured Term Loan	0.75%	SOFR	9.00%	14.64%	05/03/21	05/07/29	15,000		14,699		9,744	3.1
MBS Highway, LLC	First Lien Secured Term Loan	1.00%	SOFR	7.50%	13.18%	10/13/22	10/13/27	9,381		9,204		9,089	2.9
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	7.00%	12.45%	06/14/19	02/27/24	3,148		3,148		3,113	1.0
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)⁽⁷⁾⁽¹²⁾	First Lien Secured Revolving Loan	1.00%	Base Rate	6.84%	12.78%	06/14/19	02/27/24	271		271		268	0.1
UserZoom Technologies, Inc. (d/b/a UserZoom, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	7.50%	12.99%	01/12/23	04/05/29	9,819		9,570		9,719	3.2
										39,567		34,202	11.0
Automotive Retail
Team Car Care Holdings, LLC (Heartland Auto)⁽¹²⁾	First Lien Secured Term Loan	1.00%	Base Rate	7.48%	13.09%	02/16/18	12/31/24	12,407		12,391		12,407	3.9
										12,391		12,407	3.9
Broadcasting
Coastal Television Broadcasting Group LLC	First Lien Secured Term Loan	1.00%	SOFR	7.00%	12.46%	12/30/21	12/30/26	7,418		7,329		7,246	2.3
Coastal Television Broadcasting Group LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.00%	12.46%	12/30/21	12/30/26	—		—		(3)	—
										7,329		7,243	2.3
Broadline Retail
Luxury Brand Holdings, Inc. (d/b/a Ross-Simons, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	12/04/20	06/04/26	5,280		5,233		5,280	1.7
Potpourri Group, Inc.	First Lien Secured Term Loan	1.50%	SOFR	8.25%	13.71%	07/03/19	07/03/24	13,799		13,767		13,799	4.4
										19,000		19,079	6.1
Building Products
Trimlite Buyer LLC (d/b/a Trimlite LLC)⁽⁵⁾⁽¹³⁾⁽²³⁾	First Lien Secured Term Loan	1.00%	CDOR	6.50%	11.94%	07/27/21	07/27/27	19,624		15,472		14,810	4.7
										15,472		14,810	4.7
Commodity Chemicals
FGI Acquisition Corp. (d/b/a Flexitallic Group SAS)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	12.00%	10/28/19	10/29/26	16,193		15,786		16,110	5.1
US Methanol Midco LLC (d/b/a US Methanol LLC)	First Lien Secured Term Loan	1.00%	SOFR	7.75%	13.28%	12/20/22	12/20/27	5,203		5,111		5,153	1.6
US Methanol Midco LLC (d/b/a US Methanol LLC)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.75%	13.29%	12/20/22	12/20/27	9,540		9,345		9,449	3.0
										30,242		30,712	9.7
Construction & Engineering
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	11.38%	12/01/23	01/02/29	140		137		137	—
										137		137	—
Construction Materials
Claridge Products and Equipment, LLC	First Lien Secured Term Loan	1.00%	SOFR	8.00%	13.50% (12.00% Cash + 1.50% PIK)	12/30/20	12/30/25	7,452		7,395		6,405	2.0
Claridge Products and Equipment, LLC^(7)(12)	First Lien Secured Revolving Loan	1.00%	Base Rate	7.56%	14.41% (12.91% Cash + 1.50% PIK)	12/30/20	12/30/25	632		628		496	0.2
										8,023		6,901	2.2

See notes to the consolidated financial statements

Table of Contents

WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Data Processing & Outsourced Services
ALM Media, LLC	First Lien Secured Term Loan	1.00%	SOFR	6.00%	11.50%	11/25/19	11/25/24	12,600	$	12,555	$	12,517	4.0	%
Future Payment Technologies, L.P.	First Lien Secured Term Loan	1.00%	SOFR	8.25%	13.69%	12/23/16	12/05/25	21,665		21,582		21,480	6.8
										34,137		33,997	10.8
Distributors
Foodservices Brand Group, LLC (d/b/a Crown Brands Group)	First Lien Secured Term Loan	1.00%	SOFR	8.00%	13.52%	11/22/22	12/09/25	357		357		200	0.1
Foodservices Brand Group, LLC (d/b/a Crown Brands Group)⁽¹⁷⁾	Second Lien Secured Term Loan	1.50%	SOFR	6.50%	11.96%	11/22/22	01/08/26	5,171		4,915		1,601	0.5
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)	First Lien Secured Bridge Loan	1.00%	SOFR	14.00%	19.46% (13.46% Cash + 6.00% PIK)	12/22/23	12/22/25	1,464		1,420		1,420	0.4
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)	First Lien Secured Term Loan	1.00%	SOFR	7.25%	12.71%	12/22/23	12/22/28	9,490		9,254		9,254	2.9
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.25%	12.71%	12/22/23	12/22/28	—		—		—	—
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.25%	12.71%	12/22/23	12/22/28	—		—		—	—
										15,946		12,475	3.9
Diversified Chemicals
Manchester Acquisition Sub LLC (d/b/a Draslovka Holding AS)	First Lien Secured Term Loan	0.75%	SOFR	5.75%	11.28%	11/16/21	12/01/26	7,840		7,587		7,215	2.3
Chase Products Co. (f/k/a Starco)⁽⁶⁾⁽²¹⁾	Second Lien Secured Term Loan	N/A	N/A	12.00%	12.00% PIK	03/16/23	03/16/28	2,962		2,962		2,793	0.9
										10,549		10,008	3.2
Diversified Support Services
NNA Services, LLC	First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.25%	08/27/21	08/27/26	9,417		9,354		9,293	2.9
										9,354		9,293	2.9
Education Services
EducationDynamics, LLC	First Lien Secured Term Loan	1.00%	SOFR	7.00%	12.46% (11.96% Cash + 0.50% PIK)	09/15/21	09/15/26	12,784		12,647		12,407	4.0
EducationDynamics, LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.00%	12.46% (11.96% Cash + 0.50% PIK)	09/15/21	09/15/26	—		—		(22)	—
EducationDynamics, LLC⁽⁴⁾	Subordinated Unsecured Term Loan	N/A	N/A	4.00%	4.00%	09/15/21	03/15/27	167		167		167	0.1
MSI Information Services, Inc.	First Lien Secured Term Loan	1.00%	SOFR	7.75%	13.29%	04/25/22	04/24/26	7,333		7,248		6,972	2.2
MSI Information Services, Inc.^(7)(12)	First Lien Secured Revolving Loan	1.00%	Base Rate	6.84%	15.06%	04/25/22	04/24/26	825		815		776	0.2
										20,877		20,300	6.5
Electric Utilities
CleanChoice Energy, Inc.	First Lien Secured Term Loan	1.00%	SOFR	7.58%	13.14%	10/12/21	10/12/26	15,955		15,715		15,954	5.0
										15,715		15,954	5.0
Environmental & Facilities Services
Branford Filtration, LLC (d/b/a Clean Solutions Group)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	11/17/23	11/17/28	11,613		11,358		11,358	3.6
Branford Filtration, LLC (d/b/a Clean Solutions Group)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.96%	11/17/23	11/17/28	—		—		—	—
Industrial Specialty Services USA LLC	First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.25%	12/31/21	12/31/26	11,767		11,626		11,537	3.6
										22,984		22,895	7.2
Health Care Facilities
Bridgepoint Healthcare, LLC	First Lien Secured Term Loan	1.00%	SOFR	8.00%	13.46%	10/05/21	10/05/26	9,073		8,973		8,967	2.8
Bridgepoint Healthcare, LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	8.00%	13.46%	10/05/21	10/05/26	—		—		(1)	—
										8,973		8,966	2.8
Health Care Services
Lab Logistics, LLC	First Lien Secured Term Loan	1.00%	SOFR	7.25%	12.71%	10/16/19	09/25/24	5,449		5,442		5,449	1.7
Lab Logistics, LLC	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.25%	12.71%	10/16/19	09/25/24	5,090		5,089		5,090	1.6
PG Dental New Jersey Parent, LLC	First Lien Secured Term Loan	1.00%	SOFR	7.50%	12.96% (10.71% Cash + 2.25% PIK)	11/25/20	11/25/25	6,400		6,348		6,400	2.0
PG Dental New Jersey Parent, LLC⁽¹²⁾	First Lien Secured Revolving Loan	1.00%	Base Rate	7.00%	13.98% (11.73% Cash + 2.25% PIK)	11/25/20	11/25/25	704		698		704	0.2
										17,577		17,643	5.5

See notes to the consolidated financial statements

Table of Contents

WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Health Care Supplies
ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)	First Lien Secured Term Loan	0.75%	SOFR	7.50%	13.01%	02/23/22	02/23/28	20,409	$	20,056	$	18,983	6.0	%
										20,056		18,983	6.0
Heavy Electrical Equipment
Power Service Group CR Acquisition Inc. (d/b/a Power Plant Services)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.25%	06/25/21	06/25/26	8,804		8,712		8,782	2.8
Power Service Group CR Acquisition Inc. (d/b/a Power Plant Services)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.75%	12.25%	07/11/22	06/25/26	1,356		1,336		1,353	0.4
										10,048		10,135	3.2
Home Furnishings
Hollander Intermediate LLC (d/b/a Hollander Sleep Products, LLC)	First Lien Secured Term Loan	3.00%	SOFR	10.75%	16.22%	09/19/22	09/21/26	4,689		4,661		4,179	1.3
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	12.07%	10/12/21	10/12/26	20,616		20,385		20,407	6.4
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	12.07%	10/12/21	10/12/26	—		—		3	—
Whitestone Home Furnishings, LLC (d/b/a Saatva, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	11/06/23	08/20/26	2,990		2,919		2,919	0.9
										27,965		27,508	8.6
Household Appliances
BBQ Buyer, LLC (d/b/a BBQ Guys)	First Lien Secured Term Loan	1.50%	SOFR	9.50%	14.96% (13.96% Cash + 1.00% PIK)	08/28/20	08/28/25	12,891		12,787		12,818	4.1
BBQ Buyer, LLC (d/b/a BBQ Guys)	First Lien Secured Delayed Draw Loan	1.50%	SOFR	9.50%	14.96% (13.96% Cash + 1.00% PIK)	12/02/21	08/28/25	2,628		2,606		2,613	0.8
Token Buyer, Inc. (d/b/a Therm-O-Disc, Inc.)	First Lien Secured Term Loan	0.50%	SOFR	6.00%	11.53%	05/26/22	05/31/29	7,142		6,695		5,966	1.9
										22,088		21,397	6.8
Household Products
The Kyjen Company, LLC (d/b/a Outward Hound)	First Lien Secured Term Loan	1.00%	SOFR	7.50%	13.21% (12.21% Cash + 1.00% PIK)	04/05/21	04/05/26	11,358		11,282		10,904	3.4
The Kyjen Company, LLC (d/b/a Outward Hound)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.50%	13.21% (12.21% Cash + 1.00% PIK)	04/05/21	04/05/26	—		—		(31)	—
										11,282		10,873	3.4
Industrial Machinery & Supplies & Components
Project Castle, Inc. (d/b/a Material Handling Systems, Inc.)	First Lien Secured Term Loan	0.50%	SOFR	5.50%	10.89%	06/09/22	06/01/29	6,027		5,536		5,364	1.7
										5,536		5,364	1.7
Integrated Telecommunication Services
Patagonia Holdco LLC (d/b/a Lumen LATAM)	First Lien Secured Term Loan	0.50%	SOFR	5.75%	11.12%	08/05/22	08/01/29	14,442		12,357		13,191	4.2
										12,357		13,191	4.2
Investment Banking & Brokerage
JVMC Holdings Corp. (fka RJO Holdings Corp)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	02/28/19	02/28/24	3,522		3,521		3,522	1.1
										3,521		3,522	1.1
IT Consulting & Other Services
ATSG, Inc.	First Lien Secured Term Loan	1.00%	SOFR	6.50%	12.04%	11/12/21	11/12/26	3,785		3,741		3,745	1.2
										3,741		3,745	1.2
Leisure Facilities
Honors Holdings, LLC (d/b/a Orange Theory)⁽¹⁵⁾⁽¹⁶⁾	First Lien Secured Term Loan	1.00%	SOFR	6.49%	12.02%	09/06/19	09/06/24	9,441		9,375		9,347	3.0
Honors Holdings, LLC (d/b/a Orange Theory)⁽¹⁵⁾⁽¹⁶⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.37%	11.90%	09/06/19	09/06/24	4,650		4,631		4,603	1.5
Lift Brands, Inc.	First Lien Secured Term Loan A	1.00%	SOFR	7.50%	12.96%	06/29/20	06/29/25	5,518		5,492		5,457	1.7
Lift Brands, Inc.	First Lien Secured Term Loan B	N/A	N/A	9.50%	9.50% PIK	06/29/20	06/29/25	1,450		1,441		1,406	0.4
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁹⁾	First Lien Secured Term Loan C	N/A	N/A	9.50%	9.50% PIK	06/29/20	N/A	1,657		1,654		1,623	0.5
										22,593		22,436	7.1

See notes to the consolidated financial statements

Table of Contents

WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Leisure Products
American Crafts, LC⁽¹⁴⁾⁽²⁰⁾	Super Priority First Lien Secured Term Loan	1.00%	SOFR	8.50%	13.96% PIK	07/25/23	05/28/26	1,903	$	1,903	$	1,878	0.6	%
American Crafts, LC⁽¹⁴⁾⁽²⁰⁾	Priority First Lien Secured Term Loan	1.00%	SOFR	8.50%	13.96% PIK	12/22/22	05/28/26	5,105		5,105		3,226	1.0
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾⁽²⁰⁾	First Lien Secured Term Loan	1.00%	SOFR	8.50%	13.96% PIK	05/28/21	05/28/26	9,441		8,720		553	0.2
American Crafts, LC⁽¹⁴⁾⁽¹⁷⁾⁽²⁰⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	8.50%	13.96% PIK	01/25/22	05/28/26	1,585		1,458		93	—
Playmonster Group LLC⁽⁶⁾⁽¹⁹⁾	Priority First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.37% PIK	12/09/22	06/08/26	1,140		1,118		1,015	0.3
Playmonster Group LLC⁽⁶⁾⁽¹⁷⁾⁽¹⁹⁾	First Lien Secured Term Loan	1.00%	SOFR	9.00%	14.53% PIK	06/07/21	06/08/26	4,232		3,661		1,363	0.4
Leviathan Intermediate Holdco, LLC	First Lien Secured Term Loan	1.50%	SOFR	7.50%	13.00%	12/27/22	12/27/27	10,346		10,098		10,346	3.3
Leviathan Intermediate Holdco, LLC⁽⁷⁾	First Lien Secured Revolving Loan	1.50%	SOFR	7.50%	13.00%	12/27/22	12/27/27	—		—		14	—
										32,063		18,488	5.8
Life Sciences Tools & Services
LSCS Holdings, Inc. (d/b/a Eversana Life Science Services, LLC)	Second Lien Secured Term Loan	0.50%	SOFR	8.00%	13.47%	11/23/21	12/16/29	5,000		4,944		4,901	1.5
										4,944		4,901	1.5
Office Services & Supplies
Empire Office, Inc.	First Lien Secured Term Loan	1.50%	SOFR	6.75%	12.21%	04/12/19	04/12/24	10,947		10,931		10,947	3.5
Empire Office, Inc.	First Lien Secured Delayed Draw Loan	1.50%	SOFR	6.75%	12.21%	08/17/21	04/12/24	4,556		4,545		4,556	1.4
										15,476		15,503	4.9
Real Estate Services
Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	11/16/21	11/16/27	11,668		11,517		11,496	3.6
StoicLane MidCo, LLC (d/b/a StoicLane Inc.)	First Lien Secured Term Loan	1.00%	SOFR	7.50%	13.00%	11/04/22	11/04/27	4,606		4,518		4,606	1.5
StoicLane MidCo, LLC (d/b/a StoicLane Inc.)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.50%	13.00%	11/04/22	11/04/27	5,545		5,466		5,633	1.8
										21,501		21,735	6.9
Research & Consulting Services
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)	First Lien Secured Term Loan	0.75%	SOFR	6.00%	11.36%	11/21/23	11/21/29	3,654		3,564		3,564	1.1
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)⁽⁷⁾	First Lien Secured Delayed Draw Loan	0.75%	SOFR	6.00%	11.36%	11/21/23	11/21/29	—		—		—	—
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)⁽⁷⁾	First Lien Secured Revolving Loan	0.75%	SOFR	6.00%	11.36%	11/21/23	11/21/28	—		—		—	—
M&M OpCo. LLC (d/b/a Escalent, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	8.00%	13.45%	04/07/23	04/09/29	4,726		4,602		4,580	1.4
M&M OpCo. LLC (d/b/a Escalent, Inc.)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	8.00%	13.45%	04/07/23	04/09/29	—		—		(1)	—
										8,166		8,143	2.5
Specialized Consumer Services
HC Salon Holdings, Inc. (d/b/a Hair Cuttery)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	12.11%	09/30/21	09/30/26	11,404		11,279		11,404	3.6
HC Salon Holdings, Inc. (d/b/a Hair Cuttery)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	12.11%	09/30/21	09/30/26	—		—		8	—
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)	First Lien Secured Term Loan	1.00%	SOFR	7.50%	12.96%	12/02/22	12/02/27	5,121		5,001		5,077	1.6
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.50%	12.96%	12/02/22	12/02/27	741		729		745	0.2
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	7.50%	12.96%	12/02/22	12/02/27	251		245		258	0.1
										17,254		17,492	5.5
Specialized Finance
WHF STRS Ohio Senior Loan Fund LLC^{(4)(5)(7)(9)(14)(18)}	Subordinated Note	N/A	SOFR	6.50%	11.85%	07/19/19	N/A	84,416		84,416		84,416	26.6
										84,416		84,416	26.6
Systems Software
Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC⁽¹⁷⁾	First Lien Secured Term Loan	1.00%	SOFR	7.75%	13.21% PIK	03/16/21	03/16/27	21,613		19,568		10,477	3.3
Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC	Priority First Lien Secured Delayed Draw Loan	1.00%	SOFR	8.00%	13.46% PIK	07/14/23	03/16/27	1,078		1,050		1,046	0.3
										20,618		11,523	3.6

See notes to the consolidated financial statements

Table of Contents

WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Technology Hardware, Storage & Peripherals
Telestream Holdings Corporation	First Lien Secured Term Loan	1.00%	SOFR	11.75%	17.28%	10/15/20	10/15/25	15,763	$	15,580	$	15,522	4.9	%
Telestream Holdings Corporation⁽⁷⁾	First Lien Secured Revolving Loan	1.00%	SOFR	11.75%	17.21%	10/15/20	10/15/25	1,242		1,228		1,223	0.4
										16,808		16,745	5.3
Wireless Telecommunication Services
Bulk Midco, LLC	First Lien Secured Term Loan	1.00%	SOFR	7.50%	12.96% (11.96% Cash + 1.00% PIK)	10/28/22	06/10/24	19,267		19,237		18,997	6.0
Bulk Midco, LLC	First Lien Secured Revolving Loan	1.00%	SOFR	7.50%	12.96% (11.96% Cash + 1.00% PIK)	10/28/22	06/10/24	2,000		1,989		1,972	0.6
										21,226		20,969	6.6

Total Debt Investments									$	693,621	$	656,707	207.4	%

Equity Investments⁽²²⁾
Advertising
Avision Holdings, LLC (d/b/a Avision Sales Group)⁽⁴⁾	Class A LLC Interests	N/A	N/A	N/A	N/A	12/15/21	N/A	200	$	287	$	411	0.1	%
ImageOne Industries, LLC⁽⁴⁾	Common A Units	N/A	N/A	N/A	N/A	09/20/19	N/A	149		7		9	—
										294		420	0.1
Air Freight & Logistics
Motivational CIV, LLC (d/b/a Motivational Fulfillment)⁽⁴⁾	Class B Units	N/A	N/A	N/A	N/A	07/12/21	N/A	1,250		1,250		—	—
										1,250		—	—
Broadline Retail
Ross-Simons Topco, LP (d/b/a Ross-Simons, Inc.)⁽⁴⁾	Preferred Units	N/A	N/A	8.00%	8.00% PIK	12/04/20	N/A	600		514		832	0.3
										514		832	0.3
Building Products
PFB Holding Company, LLC (d/b/a PFB Corporation)⁽⁴⁾⁽¹³⁾	Class A Units	N/A	N/A	N/A	N/A	12/17/21	N/A	1		423		1,053	0.3
										423		1,053	0.3
Construction & Engineering
Sterling Pure Blocker, LLC (d/b/a Banner Industries, Inc.)⁽⁴⁾	Class B Units	N/A	N/A	N/A	N/A	12/01/23	N/A	404		404		404	0.1
										404		404	0.1
Diversified Chemicals
Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽²¹⁾	Common Units	N/A	N/A	N/A	N/A	03/16/23	N/A	—		—		—	—
Pressurized Holdings, LLC (f/k/a Starco)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽²¹⁾	Preferred Units	N/A	N/A	N/A	14.00% PIK	03/16/23	N/A	—		4,537		251	0.1
										4,537		251	0.1
Diversified Financial Services
SFS Global Holding Company (d/b/a Sigue Corporation)⁽⁴⁾	Warrants	N/A	N/A	N/A	N/A	06/28/18	12/28/25	—		—		—	—
Sigue Corporation⁽⁴⁾	Warrants	N/A	N/A	N/A	N/A	06/28/18	12/28/25	22		2,890		3,472	1.1
										2,890		3,472	1.1
Diversified Support Services
Quest Events, LLC⁽⁴⁾	Common Units	N/A	N/A	N/A	N/A	12/28/18	N/A	317		360		305	0.1
										360		305	0.1
Education Services
Eddy Acquisitions, LLC (d/b/a EducationDynamics, LLC)⁽⁴⁾	Preferred Units	N/A	N/A	12.00%	12.00%	09/15/21	N/A	167		167		18	—
										167		18	—
Environmental & Facilities Services
BPII-JL Group Holdings LP (d/b/a Juniper Landscaping Holdings LLC)⁽⁴⁾	Class A Units	N/A	N/A	N/A	N/A	12/29/21	N/A	83		825		983	0.3
										825		983	0.3

See notes to the consolidated financial statements

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WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽¹⁰⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽¹¹⁾		Fair Value As A Percentage of Net Assets
Household Appliances
BBQ Buyer, LLC (d/b/a BBQGuys)⁽⁴⁾	Shares	N/A	N/A	N/A	N/A	08/28/20	N/A	1,100	$	1,100	$	1,330	0.4	%
										1,100		1,330	0.4
Industrial Machinery & Supplies & Components
BL Products Parent, LP (d/b/a Bishop Lifting Products, Inc.)⁽⁴⁾	Class A Units	N/A	N/A	N/A	N/A	02/01/22	N/A	733		788		1,053	0.3
										788		1,053	0.3
Interactive Media & Services
What If Media Group, LLC⁽⁴⁾	Common Units	N/A	N/A	N/A	N/A	07/02/21	N/A	3,081		851		1,615	0.5
										851		1,615	0.5
IT Consulting & Other Services
CX Holdco LLC (d/b/a Cennox Inc.)⁽⁴⁾	Common Units	N/A	N/A	N/A	N/A	05/04/21	N/A	1,068		1,116		1,715	0.5
Keras Holdings, LLC (d/b/a KSM Consulting, LLC)⁽⁴⁾	Shares	N/A	N/A	N/A	N/A	12/31/20	N/A	496		496		683	0.2
Vistria Blocked MGT Investor, LP (d/b/a MGT Consulting Group)⁽⁴⁾	Series A Units	N/A	N/A	N/A	N/A	04/10/23	N/A	—		314		406	0.1
										1,926		2,804	0.8
Leisure Facilities
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁴⁾	Class A Common Stock	N/A	N/A	N/A	N/A	06/29/20	N/A	2		1,941		130	—
Snap Fitness Holdings, Inc. (d/b/a Lift Brands, Inc.)⁽⁴⁾	Warrants	N/A	N/A	N/A	N/A	06/29/20	N/A	1		793		53	—
										2,734		183	—
Leisure Products
Playmonster Group Equity, Inc. (d/b/a Playmonster Group LLC)⁽⁴⁾⁽⁶⁾⁽⁸⁾⁽¹⁹⁾	Preferred Stock	N/A	N/A	14.00%	14.00% PIK	01/24/22	N/A	36		3,600		—	—
Playmonster Group Equity, Inc. (d/b/a Playmonster Group LLC)⁽⁴⁾⁽⁶⁾⁽¹⁹⁾	Common Stock	N/A	N/A	N/A	N/A	01/24/22	N/A	72		460		—	—
American Crafts Holdings, LLC (d/b/a American Crafts, LC)⁽⁴⁾⁽¹⁴⁾⁽²⁰⁾	Warrants	N/A	N/A	N/A	N/A	12/22/22	12/22/32	—		—		—	—
New American Crafts Holdings, LLC (d/b/a American Crafts, LC)⁽⁴⁾⁽¹⁴⁾⁽²⁰⁾	Class A Units	N/A	N/A	N/A	N/A	03/16/23	N/A	1		—		—	—
										4,060		—	—
Paper & Plastic Packaging Products & Materials
Max Solutions Inc.⁽⁴⁾	Common Stock	N/A	N/A	N/A	N/A	09/29/22	N/A	4		400		179	0.1
										400		179	0.1
Real Estate Services
Camp Facility Services Parent, LLC (d/b/a Camp Construction Services, Inc.)⁽⁴⁾⁽⁸⁾	Preferred Units	N/A	N/A	10.00%	10.00% PIK	11/16/21	N/A	15		840		1,023	0.3
										840		1,023	0.3
Specialized Consumer Services
Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾⁽⁸⁾	Preferred Stock	N/A	N/A	N/A	8.00% PIK	12/02/22	N/A	200		200		218	0.1
Salon Republic Investments LLC (d/b/a Salon Republic, LLC)⁽⁴⁾	Common Stock	N/A	N/A	N/A	N/A	12/02/22	N/A	400		400		241	0.1
										600		459	0.2
Research & Consulting Services
Merriman Holdings LP (d/b/a Escalent, Inc.)⁽⁴⁾	Class A Units	N/A	N/A	N/A	N/A	04/07/23	N/A	327		333		295	0.1
										333		295	0.1
Specialized Finance
WHF STRS Ohio Senior Loan Fund^{(4)(5)(7)(14)(18)}	LLC Interests	N/A	N/A	N/A	N/A	07/19/19	N/A	21,104		21,104		22,782	7.2
										21,104		22,782	7.2

Total Equity Investments									$	46,400	$	39,461	12.3	%

Total Investments									$	740,021	$	696,168	219.7	%

See notes to the consolidated financial statements

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WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)

Forward Currency Contracts


Counterparty	Currency to be sold			Currency to be purchased			Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	1,253	CAD	$	903	USD	2/7/24	$	—	$	(43)
Total								$	—	$	(43)

(1)	Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), and provide collateral for the Company’s credit facility.

(2)

The investments bear interest at a rate that may be determined by reference to the Secured Overnight Financing Rate (“SOFR” or “S”), the Canadian Dollar Offered Rate (“CDOR” or “C”), the Sterling Overnight Index Average (“SONIA”), or the U.S. Prime Rate (“Prime” or “P”) which may reset monthly, quarterly or semiannually.

(3)	The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

(4)	The investment or a portion of the investment does not provide collateral for the Company’s credit facility.

(5)

Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represented 83.3% of total assets as of the date of the consolidated schedule of investments.

(6)	Investment is a non-controlled/affiliate investment as defined by the 1940 Act.

(7)	The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of December 31, 2023. See Note 8.

(8)	Preferred equity investment is a non-income producing security.

(9)	Security is perpetual with no defined maturity date.

(10)	Except as otherwise noted, all of the Company’s portfolio company investments, which as of the date of the consolidated schedule of investments represented 219.7% of the Company’s net assets or 95.3% of the Company’s total assets, are subject to legal restrictions on sales.

(11)	The fair value of each investment was determined using significant unobservable inputs. See Note 5.

(12)	The investment was comprised of two contracts, which were indexed to P and a different base rate, SOFR, SONIA or CDOR.

(13)	Principal amount is non-USD denominated and is based in Canadian dollars.

(14)	Investment is a controlled affiliate investment as defined by the 1940 Act. See Note 4.

(15)

(16)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(17)	The investment is on non-accrual status.

(18)

(19)

(20)	In March 2023, as a result of a restructuring agreement between the Company and American Crafts, LC, the Company’s investments are controlled affiliate investments, as defined by the 1940 Act. See Note 4.

See notes to the consolidated financial statements

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WHITEHORSE FINANCE, INC.

Consolidated Schedule of Investments

December 31, 2023

(in thousands)

(21)

(22)	Ownership of certain equity investments may occur through a holding company or partnership.

(23)	The issuer is domiciled in Canada.

See notes to the consolidated financial statements

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

NOTE 1 – ORGANIZATION

WhiteHorse Finance, Inc. (“WhiteHorse Finance” and, together with its subsidiaries, the “Company”) is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for tax purposes, WhiteHorse Finance elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). WhiteHorse Finance’s common stock trades on the Nasdaq Global Select Market under the symbol “WHF.”

The Company’s investment objective is to generate attractive risk-adjusted returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a broad range of industries that typically are based on a floating interest such as SOFR plus a spread and typically have a term of three to six years. While the Company focuses principally on originating senior secured loans to lower middle market companies, it may also opportunistically make investments at other levels of a company’s capital structure, including mezzanine loans or equity interests and may receive warrants to purchase common stock in connection with its debt investments.

WhiteHorse Finance’s investment activities are managed by H.I.G. WhiteHorse Advisers, LLC (“WhiteHorse Advisers” or the “Investment Adviser”). H.I.G. WhiteHorse Administration, LLC (“WhiteHorse Administration” or the “Administrator”) provides administrative services necessary for the Company to operate.

Engaging in commodity interest transactions such as swap transactions or futures contracts for the Company may cause WhiteHorse Advisers to fall within the definition of “commodity pool operator” under the Commodity Exchange Act (the “CEA”) and related regulations promulgated by the U.S. Commodity Futures Trading Commission (the “CFTC”). On January 23, 2020, WhiteHorse Advisers claimed an exclusion from the definition of the term “commodity pool operator” under the CEA and the CFTC regulations in connection with its management of the Company (the “Exclusion”) and, therefore, WhiteHorse Advisers is not subject to CFTC registration or regulation under the CEA as a commodity pool operator with respect to its management of the Company. WhiteHorse Advisers has affirmed the Exclusion on January 14, 2025 and intends to continue to affirm the Exclusion on an annual basis.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of WhiteHorse Finance and its wholly owned subsidiaries, WhiteHorse Finance Credit I, LLC (“WhiteHorse Credit”), and its subsidiary WhiteHorse Finance (CA), LLC (“WhiteHorse California”), WHF PMA Holdco Blocker, LLC, WHF American Craft Blocker, LLC, WhiteHorse RCKC Holdings, LLC, WhiteHorse Finance Holdings, LLC and WhiteHorse Finance CLO I, LLC. The Company meets the definition of an investment company under Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies, and therefore applies the accounting and reporting guidance discussed therein to its consolidated financial statements. The classifications included in the consolidated schedule of investments represent, in management’s opinion, as to the most meaningful presentation of the Company’s investment portfolio. All significant intercompany balances and transactions have been eliminated.

Additionally, the accompanying consolidated financial statements and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Articles 6, 10 and 12 of Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial results as of and for the periods presented.

Principles of Consolidation: Under the investment company rules and regulations pursuant to ASC Topic 946, WhiteHorse Finance is precluded from consolidating any entity other than another investment company. As provided under ASC Topic 946, WhiteHorse Finance generally consolidates any investment company when it owns 100% of its

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

partners’ or members’ capital or equity units. The Company does not consolidate its investment in STRS JV or any of its controlled affiliate investments. See further description in Note 4.

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the financial statements. Actual results could differ from those estimates.

Fair Value of Financial Instruments: The Company determines the fair value of its financial instruments in accordance with ASC Topic 820, Fair Value Measurements and Disclosures. ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

The Company values its investments in accordance with the 1940 Act and Rule 2a-5 thereunder, which sets forth the requirements for determining fair value in good faith. Pursuant to Rule 2a-5, the board of directors has designated the Investment Adviser to determine the fair value of the Company’s investments. The board of directors oversees the Investment Adviser’s performance of its valuation responsibilities, and in support of this oversight, the Investment Adviser provides periodic reports to the Company’s board of directors related to the fair valuation process. The Investment Adviser carries out its responsibilities as valuation designee primarily through its valuation committee (the “Valuation Committee”), assisted by third-party valuation firms, administrative personnel, and other service providers, as appropriate. The Valuation Committee consists of a number of representatives from different functions of the Investment Adviser. The Investment Adviser conducts the fair valuation process on a quarterly basis, subject to the oversight of the Company’s board of directors through the audit committee, using consistently applied valuation procedures. In accordance with the Company’s valuation procedures, the Investment Adviser performs periodic testing of the appropriateness and accuracy of fair value methodologies, and has established a process for approving, monitoring, and evaluating independent pricing service providers. Effective September 8, 2022, the board of directors designated the Investment Adviser as the Company’s valuation designee.

Investments that are not publicly traded or for which market prices are not readily available will be valued based on the input of the Investment Adviser and independent third-party valuation firms engaged to review Company investments. These external reviews are used by the Company’s Investment Adviser, subject to the oversight of the board of directors, to review the Company’s internal valuation of investments during the year.

Investment Transactions: The Company records investment transactions on a trade date basis. These transactions may settle subsequent to the trade date depending on the transaction type. Certain expenses related to legal and tax consultation, due diligence, rating fees, valuation expenses and independent collateral appraisals may arise when the Company makes certain investments. These expenses are recognized in the consolidated statements of operations as they are incurred.

Foreign currency translation: The Company’s books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1)

cash and cash equivalents, restricted cash and cash equivalents, fair value of investments, interest receivable, and other assets and liabilities — at the spot exchange rate on the last business day of the period; and

(2)

purchases and sales of investments, income and expenses — at the exchange rates prevailing on the respective dates of such transactions.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Fluctuations arising from the translation of assets other than investments and liabilities are included with the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies on the consolidated statements of operations.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices to be more volatile than those of comparable U.S. companies or U.S. government securities.

Revenue Recognition: The Company’s revenue recognition policies are as follows:

Sales: Realized gains or losses on the sales of investments are calculated by using the specific identification method.

Investment Income: Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. The Company may also receive closing, commitment, prepayment, amendment and other fees from portfolio companies in the ordinary course of business.

Dividend income is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.

Closing fees associated with investments in portfolio companies are deferred and recognized as interest income over the respective terms of the applicable loans. Upon the prepayment of a loan or debt security, any unamortized loan closing fees are recorded as part of interest income. Commitment fees are based upon the undrawn portion committed by the Company and are recorded as interest income on an accrual basis. Prepayment, amendment and other fees are recognized when earned, generally when such fees are receivable, and are included in fee income on the consolidated statements of operations.

The Company may invest in loans that contain a PIK interest rate provision. PIK interest is accrued at the contractual rates and added to loan principal on the reset dates to the extent such amounts are expected to be collected.

Non-accrual loans: Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected. The Company may conclude that non-accrual status is not required if the loan has sufficient collateral value and is in the process of collection. Accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current.

Cash and Cash Equivalents: Cash and cash equivalents include cash, deposits with financial institutions, and short-term liquid investments in money market funds with original maturities of three months or less.

Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents include amounts that are collected and held by the trustee appointed as custodian of the assets securing the Credit Facility (as defined in Note 6). Restricted cash is held by the trustee for the payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. Restricted cash that represents interest or fee income is transferred to unrestricted cash accounts by the trustee generally once a quarter after the payment of operating expenses and amounts due under the Credit Facility.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Offering Costs: The Company may incur legal, accounting, regulatory, investment banking and other costs in relation to equity offerings. Offering costs are deferred and charged against paid-in capital in excess of par on completion of the related offering.

Deferred Financing Costs: Deferred financing costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. These amounts are amortized and are included in interest expense in the consolidated statements of operations over the estimated life of the borrowings. Deferred financing costs are presented in the consolidated statements of assets and liabilities as a direct reduction from the carrying amount of the related debt liability.

Income Taxes: The Company elected to be treated as a RIC under Subchapter M of the Code. In order to maintain its status as a RIC, among other requirements, the Company is required to distribute dividends for U.S. federal income tax purposes to its stockholders each taxable year generally of an amount at least equal to 90% of the sum of ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In addition, the Company will incur a nondeductible excise tax equal to 4% of the amount by which (1) 98% of ordinary income for the calendar year (taking into account certain deferrals and elections), (2) 98.2% of capital gains in excess of capital losses, adjusted for certain ordinary losses, for the one-year period ending on October 31 of the calendar year and (3) any ordinary income and capital gain income for preceding years that were not distributed during such years and on which the Company incurred no U.S. federal income tax exceed distributions for the year. The Company accrues estimated excise tax on the amount, if any, that estimated taxable income is expected to exceed the level of stockholder distributions described above.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statement is the largest benefit or expense that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Any tax positions not deemed to satisfy the more-likely-than-not threshold are reversed and recorded as tax benefit or tax expense, as appropriate, in the current year. Management has analyzed the Company’s tax positions, and the Company has concluded that the Company did not have any unrecognized tax benefits or unrecognized tax liabilities related to uncertain tax positions as of December 31, 2024 and December 31, 2023.

Penalties or interest that may be assessed related to any income taxes would be classified as general and administrative expenses on the consolidated statements of operations. The Company had no amounts accrued for interest or penalties as of December 31, 2024 or December 31, 2023. The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next twelve months. The Company’s tax returns are subject to examination by federal, state and local taxing authorities. Because many types of transactions are susceptible to varying interpretations under U.S. federal and state income tax laws and regulations, the amounts reported in the accompanying consolidated financial statements may be subject to change at a later date by the respective taxing authorities. Tax returns for each of the federal tax years since 2020 remain subject to examination by the Internal Revenue Service.

Dividends and Distributions: Dividends and distributions to common stockholders are recorded on the ex-dividend date. Quarterly distribution payments are determined by the Company’s board of directors and are paid from taxable earnings estimated by management and may include a return of capital and/or capital gains. Net realized capital gains, if any, are distributed at least annually, although the Company may decide to retain such capital gains for investment.

The Company maintains an “opt out” dividend reinvestment plan (“DRIP”) for common stockholders. As a result, if the Company declares a distribution or other dividend, stockholders’ cash distributions will be automatically reinvested in additional shares of common stock, unless they specifically “opt out” of the DRIP so as to receive cash distributions.

Earnings per Share: The Company calculates earnings per share as earnings available to stockholders divided by the weighted average number of shares outstanding during the period.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Risks and Uncertainties: In the normal course of business, the Company generally encounters two significant types of economic risks including credit and market. Credit risk is the risk of default on the Company’s investments that result from an issuer’s, borrower’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in interest rates, spreads or other market factors, including the value of the collateral underlying investments held by the Company. Management believes that the carrying value of the Company’s investments are fairly stated, taking into consideration these risks along with estimated collateral values, payment histories and other market information.

Reclassifications: Certain amounts in the consolidated financial statements have been reclassified. These reclassifications had no material impact on the Company’s consolidated financial position, results of operations or cash flows as previously reported.

Segment Reporting: In accordance with ASC Topic 280, Segment Reporting, or ASC 280, the Company has determined that it has a single operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.

Recent Accounting Pronouncements: In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” or ASU 2023-07. ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis. ASU 2023-07 is effective on a retrospective basis for annual periods beginning after December 15, 2023, for interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. Management has adopted ASU 2023-07 effective December 31, 2024 and application of the guidance did not have a material impact on the Company’s consolidated financial statements. See Note 13 for more information on the adoption of ASU 2023-07.

In November 2024, the Financial Accounting Standards Board issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires public business entities to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to financial statements. The objective of this guidance is to enhance transparency and comparability by providing more detailed disaggregation of expenses presented in the income statement. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of the adoption of ASU 2024-03 on its consolidated financial statements.

NOTE 3 - FORWARD CURRENCY CONTRACTS

The Company may enter into foreign currency forward contracts from time to time to facilitate settlement of purchases and sales of investments denominated in foreign currencies and to economically hedge the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. A foreign currency forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. These contracts are marked-to-market by recognizing the difference between the contract forward exchange rate and the forward market exchange rate on the last day of the period presented as unrealized appreciation or depreciation. Realized gains or losses are recognized when forward contracts are settled. Risks arise as a result of the potential inability of the counterparties to meet the terms of their contracts. The Company attempts to limit counterparty risk by only dealing with well-known counterparties.

The Company utilizes forward foreign currency exchange contracts to protect itself against fluctuations in exchange rates. The Company may choose to renew contracts quarterly unless otherwise settled by the Company or the counterparty.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

The following table provides a breakdown of our forward currency contracts for the years ended December 31, 2024, 2023 and 2022.


		Year ended December 31,
($ in thousands)		2024		2023		2022
Realized gain (loss) on forward currency contracts	$	13	$	27	$	(3)
Unrealized appreciation (depreciation) on forward currency contracts		63		(40)		—
Total net realized and unrealized gains (losses) on forward currency contracts	$	76	$	(13)	$	(3)

The value associated with unrealized gain or loss on open contracts is included in unrealized appreciation or depreciation on forward currency contracts within the consolidated statements of assets and liabilities. Open contracts as of December 31, 2024 were as follows:


Counterparty	Currency to be sold			Currency to be purchased			Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	796	CAD	$	574	USD	2/4/25	$	20	$	—
Total								$	20	$	—


Counterparty	Currency to be sold			Currency to be purchased			Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	1,253	CAD	$	903	USD	2/7/24	$	—	$	(43)
Total								$	—	$	(43)

The following table is a summary of the average USD notional exposure to foreign currency forward contracts for the years ended December 31, 2024 and 2023:


	Year ended December 31,
Average USD notional outstanding		2024		2023
Forward currency contracts	$	965	$	587

The foreign currency forward contracts open at the end of the period are generally indicative of the volume of activity during the period. The value associated with unrealized gain or loss on open contracts is included in unrealized appreciation or depreciation on forward currency contracts within the consolidated statements of assets and liabilities.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Offsetting of Derivative Instruments

The Company has derivative instruments that are subject to master netting agreements. These agreements include provisions to offset positions with the same counterparty in the event of default by one of the parties. The Company’s unrealized appreciation or depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the consolidated statements of assets and liabilities. The following tables present the Company’s assets and liabilities related to derivatives by counterparty, net of amounts available for offset under a master netting arrangement and net of any collateral received or pledged by the Company for such assets and liabilities as of December 31, 2024 and 2023.


	As of December 31, 2024
Counterparty ($ in thousands)	Derivative Assets Subject to Master Netting Agreement		Derivative Liabilities Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash Collateral Received		Non-cash Collateral Pledged⁽¹⁾		Cash Collateral Received⁽¹⁾		Cash Collateral Pledged⁽¹⁾		Net Amount of Derivative Assets⁽²⁾		Net Amount of Derivative Liabilities⁽³⁾
Morgan Stanley (CAD)	$	20	$	—	$	—	$	—	$	—	$	—	$	—	$	20	$	—
Total	$	20	$	—	$	—	$	—	$	—	$	—	$	—	$	20	$	—

(1)	In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization.

(2)	Net amount of derivative assets represents the net amount due from the counterparty to the Company in the event of default.

(3)	Net amount of derivative liabilities represents the net amount due from the Company to the counterparty in the event of default.


	As of December 31, 2023
Counterparty ($ in thousands)	Derivative Assets Subject to Master Netting Agreement		Derivative Liabilities Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash Collateral Received		Non-cash Collateral Pledged⁽¹⁾		Cash Collateral Received⁽¹⁾		Cash Collateral Pledged⁽¹⁾		Net Amount of Derivative Assets⁽²⁾		Net Amount of Derivative Liabilities⁽³⁾
Morgan Stanley (CAD)	$	—	$	43	$	—	$	—	$	—	$	—	$	—	$	—	$	43
Total	$	—	$	43	$	—	$	—	$	—	$	—	$	—	$	—	$	43

(1)	In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization.

(2)	Net amount of derivative assets represents the net amount due from the counterparty to the Company in the event of default.

(3)	Net amount of derivative liabilities represents the net amount due from the Company to the counterparty in the event of default.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

NOTE 4 - INVESTMENTS

Investments consisted of the following:


	As of December 31, 2024				As of December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
First lien secured loans	$	538,078	$	502,693	$	581,518	$	553,085
Second lien secured loans		8,295		8,342		27,520		19,039
Unsecured loans		1,152		1,175		167		167
Subordinated Note to STRS JV		84,416		84,416		84,416		84,416
Equity (excluding STRS JV)		42,195		22,846		25,296		16,679
Equity in STRS JV		21,104		22,741		21,104		22,782
Total	$	695,240	$	642,213	$	740,021	$	696,168

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

The following table shows the portfolio composition by industry grouping at fair value:


Industry ($ in thousands)	As of December 31, 2024				As of December 31, 2023
Advertising	$	17,451	3.3	%	$	420	0.1	%
Air Freight & Logistics		28,518	5.3			22,616	3.8
Application Software		26,924	5.0			34,202	5.8
Automotive Retail		—	—			12,407	2.1
Broadcasting		7,833	1.5			7,243	1.2
Broadline Retail		5,336	1.0			19,911	3.4
Building Products		13,206	2.5			15,863	2.7
Commodity Chemicals		16,026	3.0			30,712	5.2
Construction & Engineering		3,927	0.7			541	0.1
Construction Materials		5,640	1.1			6,901	1.2
Data Processing & Outsourced Services		28,572	5.3			33,997	5.8
Distributors		10,690	2.0			12,475	2.1
Diversified Chemicals		4,999	0.9			10,259	1.7
Diversified Financial Services		—	—			3,472	0.6
Diversified Support Services		9,563	1.8			9,598	1.6
Education Services		21,314	4.0			20,318	3.5
Electric Utilities		16,032	3.0			15,954	2.7
Environmental & Facilities Services		1,400	0.3			23,878	4.1
Food Distributors		350	0.1			—	—
Health Care Facilities		8,660	1.6			8,966	1.5
Health Care Services		19,589	3.7			17,643	3.0
Health Care Supplies		19,535	3.7			18,983	3.2
Heavy Electrical Equipment		10,138	1.9			10,135	1.7
Home Furnishings		25,376	4.7			27,508	4.7
Household Appliances		22,162	4.1			22,727	3.9
Household Products		11,656	2.2			10,873	1.9
Industrial Machinery & Supplies & Components		13,237	2.5			6,417	1.2
Integrated Telecommunication Services		13,135	2.5			13,191	2.2
Interactive Media & Services		15,970	3.0			1,615	0.3
Investment Banking & Brokerage		—	—			3,522	0.6
IT Consulting & Other Services		3,504	0.6			6,549	1.1
Leisure Facilities		19,580	3.7			22,619	3.8
Leisure Products		23,298	4.4			18,488	3.1
Life Sciences Tools & Services		5,000	0.9			4,901	0.8
Office Services & Supplies		—	—			15,503	2.6
Packaged Foods & Meats		4,087	0.7			—	—
Paper & Plastic Packaging Products & Materials		—	—			179	—
Paper Products		9,453	1.8			—	—
Real Estate Services		20,872	3.9			22,758	3.9
Research & Consulting Services		5,295	0.9			8,438	1.4
Security & Alarm Services		7,070	1.3			—	—
Specialized Consumer Services		7,122	1.3			17,951	3.0
Specialized Finance⁽¹⁾		—	—			—	—

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


Industry ($ in thousands)	As of December 31, 2024				As of December 31, 2023
Systems Software		26,398	4.9			11,523	2.0
Technology Hardware, Storage & Peripherals		18,072	3.4			16,745	2.8
Transaction & Payment Processing Services		8,066	1.5			—	—
Wireless Telecommunication Services		—	—			20,969	3.6
Total⁽¹⁾	$	535,056	100.0	%	$	588,970	100.0	%

(1)	Excludes investments in STRS JV.

As of December 31, 2024, the portfolio companies underlying the investments are all located in the United States and its territories, except for Arcserve Cayman Opco LP, Arcserve Cayman GP LLC, Arcserve Cayman Topco LP and Alvaria Holdco (Cayman), which are domiciled in Cayman Islands, and Trimlite Buyer, LLC, which is domiciled in Canada. As of December 31, 2023, the portfolio companies underlying the investments are all located in the United States and its territories, except for Trimlite Buyer, LLC, which is domiciled in Canada. As of December 31, 2024 and December 31, 2023, the weighted average remaining term of the Company’s debt investments, excluding non-accrual investments, was approximately 3.0 years and 2.8 years, respectively.

As of December 31, 2024 the total cost basis of non-accrual loans was $69,576 and the total fair value of non-accrual loans was $37,019. As of December 31, 2023 the total cost basis of non-accrual loans was $38,322 and the total fair value of non-accrual loans was $14,087.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

An affiliated company is generally a portfolio company in which the Company owns 5% or more of its voting securities. A controlled affiliated company is generally a portfolio company in which the Company owns more than 25% of its voting securities or has the power to exercise control over its management or policies (including through a management agreement). The following table presents the schedule of investments in and advances to affiliated and controlled persons (as defined by the 1940 Act) as of and for the year ended December 31, 2024:


		Dividends,		Beginning								Net Change in		Ending Fair
		interest and PIK		Fair Value as of						Net		Unrealized		Value as of
	Type of	included in		December 31,		Gross		Gross		Realized		Appreciation		December 31,
Affiliated Person⁽¹⁾	Asset	income		2023		Additions⁽²⁾		Reductions⁽³⁾		Gain (Loss)		(Depreciation)		2024
Non-controlled affiliates
Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC)	First Lien Secured Delayed Draw Loan	$	116	$	—	$	677	$	—	$	—	$	570	$	1,247
Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC)	Unsecured Loan		54		—		569		—		—		12		581
Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC)	Unsecured Loan		55		—		583		—		—		11		594
Arcserve Cayman GP LLC (d/b/a Arcserve (USA), LLC)	Common Units		—		—		—		—		—		—		—
Arcserve Cayman Topco LP (d/b/a Arcserve (USA), LLC)	Common Units		—		—		19,568		—		—		(10,437)		9,131
Camarillo Fitness Holdings, LLC (f/k/a Honors Holdings, LLC)	First Lien Secured Term Loan		36		—		10,270		—		—		222		10,492
H.I.G. Camarillo, L.P. (f/k/a Honors Holdings, LLC)	Limited Partner Interests		—		—		—		—		—		—		—
Playmonster Group LLC	Priority First Lien Secured Term Loan		157		1,015		157		—		—		—		1,172
Playmonster Group LLC	First Lien Secured Term Loan		—		1,363		—		—		—		272		1,635
Playmonster Group Equity, Inc. (d/b/a PlayMonster)	Preferred Stock		—		—		—		—		—		—		—
Playmonster Group Equity, Inc. (d/b/a PlayMonster)	Common Stock		—		—		—		—		—		—		—
Chase Products Co. (f/k/a Starco)	Second Lien Secured Term Loan		380		2,793		380		—		—		169		3,342
Pressurized Holdings, LLC (f/k/a Starco)	Common Units		—		—		—		—		—		—		—
Pressurized Holdings, LLC (f/k/a Starco)	Preferred Units		—		251		—		—		—		1,406		1,657
Total Non-controlled affiliates		$	798	$	5,422	$	32,204	$	—	$	—	$	(7,775)	$	29,851

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


		Dividends,		Beginning								Net Change in		Ending Fair
		interest and PIK		Fair Value as of						Net		Unrealized		Value as of
	Type of	included in		December 31,		Gross		Gross		Realized		Appreciation		December 31,
Affiliated Person⁽¹⁾	Asset	income		2023		Additions⁽²⁾		Reductions⁽³⁾		Gain (Loss)		(Depreciation)		2024
Controlled affiliates
American Crafts, LC	Super Senior Priority First Lien Secured Term Loan	$	107	$	—	$	2,374	$	—	$	—	$	(2,001)	$	373
American Crafts, LC	Super Senior Priority First Lien Secured Term Loan		96		—		1,230		—		—		(1,230)		—
American Crafts, LC	Super Priority First Lien Secured Term Loan		187		1,878		191		—		—		(2,069)		—
American Crafts, LC	Priority First Lien Secured Term Loan		(10)		3,226		—		—		—		(3,226)		—
American Crafts, LC	First Lien Secured Term Loan		—		553		—		—		—		(553)		—
American Crafts, LC	First Lien Secured Delayed Draw Loan		—		93		—		—		—		(93)		—
American Crafts Holdings, LLC (d/b/a American Crafts, LC)	Warrants		—		—		—		—		—		—		—
New American Crafts Holdings, LLC (d/b/a American Crafts, LC)	Class A Units		—		—		—		—		—		—		—
WHF STRS Ohio Senior Loan Fund LLC*	Subordinated Note		9,838		84,416		—		—		—		—		84,416
WHF STRS Ohio Senior Loan Fund LLC*	Equity		6,861		22,782		—		—		—		(41)		22,741
Total Controlled affiliates		$	17,079	$	112,948	$	3,795	$	—	$	—	$	(9,213)	$	107,530

The Company and STRS Ohio are the members of STRS JV, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes. The members make investments in STRS JV in the form of limited liability company (“LLC”) equity interests and interest-bearing subordinated notes as STRS JV makes investments, and all portfolio and other material decisions regarding STRS JV must be submitted to STRS JV’s board of managers which is comprised of an equal number of members appointed by each of the Company and STRS Ohio. Because management of STRS JV is shared equally between the Company and STRS Ohio, the Company does not believe it controls STRS JV for purposes of the 1940 Act or otherwise.

(1)

Refer to the consolidated schedule of investments for the principal amount, industry classification and other security detail of each portfolio company.

(2)

Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK, an exchange of existing investments for new investments and the transfers of an existing portfolio company into this category from a different category.

(3)

Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, an exchange of existing investments for new investments and the transfers of an existing portfolio company from this category to a different category.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

In January 2024, as part of a restructuring agreement between the Company and Arcstor Midco, LLC (d/b/a Arcserve (USA), the Company’s first lien secured term loan and priority first lien delayed draw loan investments in Arcstor Midco, LLC (d/b/a Arcserve (USA), converted into a new first lien secured delayed draw loan and unsecured notes in Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC) and common equity of Arcserve Cayman GP LLC (d/b/a Arcserve (USA), LLC) and Arcserve Cayman Topco LP (d/b/a Arcserve (USA), LLC).

In September 2024, as part of a restructuring and partial foreclosure agreement between the Company and Honors Holdings, LLC (d/b/a Orange Theory), the Company’s first lien secured term loan, first lien delayed draw loan and revolver investments in Honors Holdings, LLC, which had a historical cost basis of $17,816, were converted into a new first lien secured term loan of Camarillo Fitness Holdings, LLC (f/k/a Honors Holdings, LLC) and common equity interests in H.I.G. Camarillo, L.P. (f/k/a Honors Holdings, LLC). As of the restructuring date, these investments had an adjusted cost basis of $10,234. The remaining portion of the Honors Holdings, LLC first lien secured investments, with a cost basis of $7,582, was recognized as a net realized loss in the consolidated statements of operations.

The following table presents the schedule of investments in and advances to affiliated and controlled affiliated persons (as defined by the 1940 Act) as of and for the year ended December 31, 2023:


		Dividends, interest		Beginning								Net Change in		Ending Fair
		and PIK		Fair Value as of						Net		Unrealized		Value as of
	Type of	included in		December 31,						Realized		Appreciation		December 31,
Affiliated Person⁽¹⁾	Asset	income		2022		Purchases		Sales		Gain (Loss)		(Depreciation)		2023
Non-controlled affiliates
Arcole Holding Corporation	Equity	$	84	$	6,380	$	—	$	(6,605)	$	(339)	$	564	$	—
Playmonster Group LLC	Priority First Lien Secured Term Loan		129		176		943		—		—		(104)		1,015
Playmonster Group LLC	First Lien Secured Term Loan		(85)		2,977		—		—		—		(1,614)		1,363
Playmonster Group Equity, Inc. (d/b/a PlayMonster)	Preferred Stock		—		—		—		—		—		—		—
Playmonster Group Equity, Inc. (d/b/a PlayMonster)	Common Stock		—		—		—		—		—		—		—
Chase Products Co. (f/k/a Starco)	Second Lien Secured Term Loan		270		—		2,961		—		—		(168)		2,793
Pressurized Holdings, LLC (f/k/a Starco)	Common Units		—		—		—		—		—		—		—
Pressurized Holdings, LLC (f/k/a Starco)	Preferred Units		—		—		4,537		—		—		(4,286)		251
Total Non-controlled affiliates		$	398	$	9,533	$	8,441	$	(6,605)	$	(339)	$	(5,608)	$	5,422

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


		Dividends, interest		Beginning								Net Change in		Ending Fair
		and PIK		Fair Value as of						Net		Unrealized		Value as of
	Type of	included in		December 31,						Realized		Appreciation		December 31,
Affiliated Person⁽¹⁾	Asset	income		2022		Purchases		Sales		Gain (Loss)		(Depreciation)		2023
Controlled affiliates
American Crafts, LC	Super Priority First Lien Secured Term Loan	$	109	$	—	$	1,903	$	—	$	—	$	(25)	$	1,878
American Crafts, LC	Priority First Lien Secured Term Loan		575		—		5,105		—		—		(1,879)		3,226
American Crafts, LC	First Lien Secured Term Loan		568		—		7,491		—		—		(6,938)		553
American Crafts, LC	First Lien Secured Delayed Draw Loan		95		—		1,259		—		—		(1,166)		93
American Crafts Holdings, LLC (d/b/a American Crafts, LC)	Warrants		—		—		—		—		—		—		—
New American Crafts Holdings, LLC (d/b/a American Crafts, LC)	Class A Units		—		—		—		—		—		—		—
WHF STRS Ohio Senior Loan Fund LLC*	Subordinated Note		9,488		80,000		4,416		—		—		—		84,416
WHF STRS Ohio Senior Loan Fund LLC*	Equity		6,158		20,160		1,104		—		—		1,518		22,782
Total Controlled affiliates		$	16,993	$	100,160	$	21,278	$	—	$	—	$	(8,490)	$	112,948

(1)	Refer to the consolidated schedule of investments for the principal amount, industry classification and other security detail of each portfolio company.

(2)	Gross additions may include increases in the cost basis of investments resulting from new portfolio investments, PIK, an exchange of existing investments for new investments and the transfers of an existing portfolio company into this category from a different category.

(3)

In March 2023, as a result of a restructuring agreement between the Company and American Crafts, LC, the Company’s investments are controlled affiliate investments, as defined by the 1940 Act.

In March 2023, as part of a restructuring agreement between the Company and Sklar Holdings, Inc (d/b/a Starco), the Company’s first lien secured term loan investment to Sklar Holdings, Inc, with a total cost basis of $3,339, converted into a new second lien secured term loan to Chase Products Co. (f/k/a Starco) and preferred units and common units of Pressurized Holdings, LLC (f/k/a Starco). During the three months ended June 30, 2023, the Company received a paydown of $690 on its investment in Sklar Holdings, Inc (d/b/a Starco) first lien secured term loan, and the remaining Sklar Holdings, Inc (d/b/a Starco) second lien secured term loan investment, with a cost basis of $3,892, was converted into preferred units of Pressurized Holdings, LLC (f/k/a Starco).

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

WHF STRS Ohio Senior Loan Fund LLC

On January 14, 2019, the Company entered into an LLC operating agreement with STRS Ohio to co-manage a newly formed joint venture investment company, STRS JV, a Delaware LLC. STRS Ohio and the Company committed to provide up to $125,000 of subordinated notes and equity to STRS JV, with STRS Ohio providing up to $50,000 and the Company providing up to $75,000, respectively. In July 2019, STRS JV formally launched operations. STRS JV invests primarily in lower middle market, senior secured debt facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest index rate such as SOFR and have a term of three to six years.

In February 2023, the Company increased its commitment to the STRS JV in the amount of an additional $15,000, which brings the Company’s total capital commitment to the STRS JV to $115,000, comprised of $92,000 of subordinated notes and $23,000 of LLC equity interests, and STRS Ohio increased its capital commitment to the STRS JV in the amount of an additional $10,000, which brings its total capital commitment to the STRS JV to $60,000, comprised of $48,000 of subordinated notes and $12,000 of LLC equity interests. In connection with these increases in capital commitments, the Company’s and STRS Ohio’s amended economic ownership in the STRS JV is approximately 65.71% and 34.29%, respectively.

In February 2022, the Company increased its capital commitment to the STRS JV in the amount of an additional $25,000, which brought the Company’s total capital commitment to $100,000, comprised of $80,000 of subordinated notes and $20,000 of LLC equity interests. In connection with this increase in the Company’s capital commitment, the Company and STRS Ohio’s amended economic ownership in the STRS JV is approximately 66.67% and 33.33%, respectively.

As of December 31, 2024 and December 31, 2023, STRS JV had total assets of $309,077 and $332,160, respectively. STRS JV’s portfolio consisted of debt investments in 38 and 34 portfolio companies as of December 31, 2024 and December 31, 2023. As of December 31, 2024 and December 31, 2023, the largest investment by aggregate principal amount (including any unfunded commitments) in a single portfolio company in STRS JV’s portfolio was $19,594 and $19,889, respectively. The five largest investments in portfolio companies by fair value in STRS JV totaled $79,058 and $83,564 as of December 31, 2024 and December 31, 2023, respectively. STRS JV invests in portfolio companies in the same industries in which the Company may directly invest.

The Company provides capital to STRS JV in the form of LLC equity interests and through interest-bearing subordinated notes. As of both December 31, 2024 and December 31, 2023, the Company and STRS Ohio owned 65.71% and 34.29%, respectively, of the LLC equity interests of STRS JV. The Company’s investment in STRS JV consisted of equity contributions of $21,104 and advances of the subordinated notes of $84,416 as of December 31, 2024 and December 31, 2023, respectively. As of both December 31, 2024 and December 31, 2023, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $23,000 and $92,000, respectively, of which $1,896 and $7,584 were unfunded, respectively.

The Company and STRS Ohio each appoint two members to STRS JV’s four-person board of managers. All material decisions with respect to STRS JV, including those involving its investment portfolio, require unanimous approval of a quorum of the board of managers. Quorum is defined as (i) the presence of two members of the board of managers; provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of managers; provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; or (iii) the presence of four members of the board of managers; provided that two individuals are present that were elected, designated or appointed by each member.

On July 19, 2019, STRS JV entered into a $125,000 credit and security agreement (the “STRS JV Credit Facility”) with JPMorgan Chase Bank, National Association (“JPMorgan”). On January 27, 2021, the terms of the STRS JV Credit Facility were amended to, among other things, increase the size of the STRS JV Credit Facility from $125,000 to $175,000. On April 28, 2021, the terms of the STRS JV Credit Facility were amended and restated to, among other things, enable borrowings in British pounds or

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

euros. On July 15, 2021, the terms of the STRS JV Credit Facility were amended to, among other things, allow STRS JV to reduce the applicable margins for interest rates to 2.35%, extend the non-call period from January 19, 2022 to January 19, 2023, extend the end of the reinvestment period from July 19, 2022 to July 19, 2023 and extend the scheduled termination date from July 19, 2024 to July 19, 2025.

On March 11, 2022, the terms of the STRS JV Credit Facility were further amended to, among other things, (i) permanently increase STRS Credit’s availability under the Credit Facility from $175,000 to $225,000, (ii) increase the minimum funding amount from $131,250 to $168,750, and (iii) apply an annual interest rate equal to the applicable SOFR plus 2.50% to borrowings greater than $175,000 in the Credit Facility.

On January 13, 2023, the terms of the STRS JV Credit Facility were further amended to, among other things, (i) permanently increase STRS Credit’s availability under the STRS JV Credit Facility from $225,000 to $262,500 (the “$37.5 Million Increase”) and (ii) apply an annual interest rate equal to applicable SOFR, plus 3.00% to any borrowings under the $37.5 Million Increase in the STRS JV Credit Facility.

On May 18, 2023, the terms of the STRS JV Credit Facility were further amended to, among other things, (i) effective June 6, 2023 apply an annual interest rate equal to applicable SOFR plus 2.72% to any USD borrowings, (ii) extend the scheduled termination date from July 19, 2025 to July 19, 2026, (iii) extend the non-call period from January 19, 2023 to January 19, 2024 and (iv) extend the end of the reinvestment period from July 19, 2023 to July 19, 2024.

On November 26, 2024, the terms of the STRS JV Credit Facility were further amended to, among other things, (i) reduce the spread from 2.50% to 2.25%, (ii) extend the non-call period from May 8, 2025, to November 26, 2026, (iii) extend the reinvestment period from January 19, 2026, to November 26, 2027, and (iv) extend the termination date from January 19, 2028, to November 26, 2029.

As of December 31, 2024, the STRS JV Credit Facility had $262,500 of commitments subject to leverage and borrowing base restrictions with an interest rate based on a risk-free index rate such as SOFR plus a spread of 2.25%. The maturity date of the STRS JV Credit Facility is November 26, 2029. As of December 31, 2024, STRS JV had $144,081 of outstanding borrowings and an interest rate outstanding of 6.4% per annum under the STRS JV Credit Facility.

As of December 31, 2023, the STRS JV Credit Facility had $262,500 of commitments subject to leverage and borrowing base restrictions with an interest rate based on a risk-free index rate such as SOFR plus 2.72%. As of December 31, 2023, the maturity date of the STRS JV Credit Facility was July 19, 2026. As of December 31, 2023, STRS JV had $165,244 of outstanding borrowings and an interest rate outstanding of 7.7% per annum under the STRS JV Credit Facility.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Below is a listing of STRS JV’s individual investments as of December 31, 2024:


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
Debt Investments
Advertising
Forward Solutions, LLC (d/b/a Avision Sales Group)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	11.23%	02/18/22	12/15/26	9,007	$	8,937	$	9,007	26.1	%
Forward Solutions, LLC (d/b/a Avision Sales Group)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.75%	11.23%	03/11/22	12/15/26	3,023		3,000		3,023	8.7
Forward Solutions, LLC (d/b/a Avision Sales Group)	First Lien Secured Revolving Loan	1.00%	SOFR	6.75%	11.23%	02/18/22	12/15/26	—		—		5	—
										11,937		12,035	34.8
Aerospace & Defense
Basel U.S. Acquisition Co., Inc. (d/b/a International Aerospace Coatings, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	9.94%	09/13/24	12/05/28	3,681		3,633		3,675	10.6
Basel U.S. Acquisition Co., Inc. (d/b/a International Aerospace Coatings, Inc.)⁽⁶⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.50%	9.94%	09/13/24	12/05/28	—		—		7	—
										3,633		3,682	10.6
Air Freight & Logistics
ITS Buyer Inc. (d/b/a ITS Logistics, LLC)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	10.35%	02/17/22	06/15/26	3,307		3,286		3,307	9.6
ITS Buyer Inc. (d/b/a ITS Logistics, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	5.50%	10.35%	02/17/22	06/15/26	—		—		4	—
										3,286		3,311	9.6
Broadline Retail
Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.03%	07/19/19	07/01/25	18,613		18,577		17,865	51.6
Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.03%	07/19/19	07/01/25	—		—		(38)	(0.1)
										18,577		17,827	51.5
Building Products
Drew Foam Companies Inc	First Lien Secured Term Loan	1.00%	SOFR	6.00%	10.48%	11/09/20	12/07/26	13,501		13,445		13,437	38.8
										13,445		13,437	38.8
Construction & Engineering
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.25%	10.61%	12/21/23	01/02/29	3,033		2,974		2,981	8.6
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.25%	10.59%	12/21/23	01/02/29	1,502		1,472		1,477	4.3
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	10.61%	12/21/23	01/02/29	420		412		415	1.2
Pavement Partners Interco, LLC (d/b/a Pave America, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	11.23%	03/17/23	02/07/28	5,117		5,015		5,111	14.8
Pavement Partners Interco, LLC (d/b/a Pave America, LLC)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.75%	11.23%	03/17/23	02/07/28	569		558		569	1.7
Pavement Partners Interco, LLC (d/b/a Pave America, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.75%	11.23%	03/17/23	02/07/28	338		331		341	1.0
TriplePoint Acquisition Holdings LLC (d/b/a TriplePoint MEP Holdings, LLC)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	9.83%	06/14/24	05/31/29	5,349		5,254		5,338	15.4
TriplePoint Acquisition Holdings LLC (d/b/a TriplePoint MEP Holdings, LLC)⁽⁶⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.50%	9.83%	06/14/24	05/31/29	—		—		9	—
TriplePoint Acquisition Holdings LLC (d/b/a TriplePoint MEP Holdings, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	5.50%	9.83%	06/14/24	05/31/29	—		—		12	—
										16,016		16,253	47.0
Data Processing & Outsourced Services
Geo Logic Systems Ltd.^(7)(10)	First Lien Secured Term Loan	1.00%	CORRA	6.00%	9.49%	01/22/20	12/21/26	18,415		14,234		12,883	37.2
Geo Logic Systems Ltd.^(7)(10)	First Lien Secured Revolving Loan	1.00%	CORRA	6.00%	9.49%	01/22/20	12/21/26	—		—		2	—
										14,234		12,885	37.2

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
Distributors
APG Lions Purchaser, LLC (d/b/a CF Stinson, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.40%	04/26/24	04/16/30	4,080	$	4,027	$	4,070	11.8	%
APG Lions Purchaser, LLC (d/b/a CF Stinson, Inc.)⁽⁶⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.75%	10.40%	04/26/24	04/16/30	—		—		15	—
APG Lions Purchaser, LLC (d/b/a CF Stinson, Inc.)	First Lien Secured Revolving Loan	1.00%	SOFR	5.75%	10.40%	04/26/24	04/16/30	—		—		6	—
FloWorks International LLC	First Lien Secured Term Loan	0.75%	SOFR	4.75%	9.27%	12/12/24	11/26/31	5,333		5,280		5,281	15.3
FloWorks International LLC⁽⁶⁾	First Lien Secured Delayed Draw Loan	0.75%	SOFR	5.75%	10.40%	12/12/24	11/26/31	—		—		—	—
										9,307		9,372	27.1
Diversified Support Services
Pirtek Holdco, LLC (d/b/a Pirtek USA, LLC)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	9.95%	10/31/23	10/26/28	7,425		7,298		7,425	21.5
Pirtek Holdco, LLC (d/b/a Pirtek USA, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	5.50%	9.95%	10/31/23	10/26/28	—		—		17	—
Quest Events, LLC	First Lien Secured Term Loan	2.00%	SOFR	7.00%	11.59%	07/19/19	09/30/26	11,592		11,563		11,592	33.5
Quest Events, LLC	First Lien Secured Revolving Loan	2.00%	SOFR	7.00%	11.59%	07/19/19	09/30/26	247		246		248	0.7
										19,107		19,282	55.7
Electrical Components & Equipment
Principal Lighting Group, LLC (d/b/a Principal Sloan)	First Lien Secured Term Loan	1.00%	SOFR	5.25%	9.81%	12/03/24	11/04/30	3,531		3,479		3,479	10.1
Principal Lighting Group, LLC (d/b/a Principal Sloan)	First Lien Secured Revolving Loan	1.00%	SOFR	5.25%	9.81%	12/03/24	11/04/30	—		—		—	—
										3,479		3,479	10.1
Environmental & Facilities Services
Buckeye Acquiror LLC (d/b/a Superior Environmental Solutions, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.42%	10.88%	08/09/23	08/01/29	6,904		6,774		6,952	20.1
Buckeye Acquiror LLC (d/b/a Superior Environmental Solutions, LLC)⁽⁶⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.00%	8.45%	08/09/23	08/01/29	2,168		2,120		2,183	6.3
Buckeye Acquiror LLC (d/b/a Superior Environmental Solutions, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.96%	08/09/23	08/01/29	234		230		248	0.7
Juniper Landscaping Holdings LLC	First Lien Secured Term Loan	1.00%	SOFR	6.25%	10.84%	03/01/22	12/29/26	11,078		11,000		11,078	32.0
Juniper Landscaping Holdings LLC	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.25%	10.85%	03/01/22	12/29/26	2,343		2,326		2,343	6.8
Juniper Landscaping Holdings LLC	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	10.82%	03/01/22	12/29/26	517		513		522	1.5
RLJ Pro-Vac, Inc. (d/b/a Pro-Vac)	First Lien Secured Term Loan	1.00%	SOFR	6.25%	10.71%	01/23/24	12/31/26	6,659		6,566		6,637	19.2
										29,529		29,963	86.6
Food Distributors
Clark Restaurant Service, LLC (d/b/a CRS OneSource)	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.11%	06/14/24	05/10/29	5,006		4,919		4,993	14.4
										4,919		4,993	14.4
Health Care Facilities
AB Centers Acquisition Corporation (d/b/a AB Centers Acquisition Corp.)	First Lien Secured Term Loan	0.75%	SOFR	5.25%	9.79%	09/19/24	07/02/31	7,962		7,866		7,919	22.9
AB Centers Acquisition Corporation (d/b/a AB Centers Acquisition Corp.)⁽⁶⁾	First Lien Secured Delayed Draw Loan	0.75%	SOFR	5.25%	9.78%	09/19/24	07/02/31	78		78		80	0.2
AB Centers Acquisition Corporation (d/b/a AB Centers Acquisition Corp.)	First Lien Secured Revolving Loan	0.75%	SOFR	5.25%	9.78%	09/19/24	07/02/31	—		—		5	—
										7,944		8,004	23.1
Health Care Services
Maxor Acquisition, Inc. (d/b/a Maxor National Pharmacy Services, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	10.46%	04/11/23	03/01/29	5,002		4,898		4,986	14.4
Maxor Acquisition, Inc. (d/b/a Maxor National Pharmacy Services, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.00%	10.46%	04/11/23	03/01/29	—		—		9	—
										4,898		4,995	14.4

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
Health Care Supplies
Arteriocyte Medical Systems, Inc. (d/b/a ISTO Biologics)	First Lien Secured Term Loan	1.00%	SOFR	5.00%	9.33%	10/25/23	10/18/28	4,972	$	4,877	$	5,021	14.5	%
Arteriocyte Medical Systems, Inc. (d/b/a ISTO Biologics)	First Lien Secured Revolving Loan	1.00%	SOFR	5.00%	9.33%	10/25/23	10/18/28	—		—		9	—
Medical Device Inc. (d/b/a Arterex)	First Lien Secured Term Loan	1.25%	SOFR	6.25%	10.68%	07/27/23	07/11/29	2,633		2,584		2,660	7.7
Medical Device Inc. (d/b/a Arterex)	First Lien Secured Revolving Loan	1.25%	SOFR	6.25%	10.68%	07/27/23	07/11/29	—		—		6	—
										7,461		7,696	22.2
Household Appliances
Smalto Inc. (d/b/a PEMCO International)⁽⁹⁾	First Lien Secured Term Loan	1.00%	EurIBOR	6.00%	8.86%	05/04/22	04/28/28	6,423		6,682		6,654	19.2
Smalto Inc. (d/b/a PEMCO International)	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.21%	05/04/22	04/28/28	978		967		978	2.8
										7,649		7,632	22.0
IT Consulting & Other Services
Cennox, Inc. (d/b/a Cennox)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	10.34%	09/11/24	05/04/29	3,350		3,319		3,344	9.7
Cennox Holdings Limited (d/b/a Cennox)⁽⁸⁾	First Lien Secured Term Loan	1.00%	SONIA	5.50%	10.40%	09/11/24	05/04/29	513		665		643	1.9
Cennox, Inc. (d/b/a Cennox)⁽⁹⁾	First Lien Secured Term Loan	1.00%	EurIBOR	5.75%	9.14%	09/11/24	05/04/29	594		649		611	1.8
Cennox, Inc. (d/b/a Cennox)	First Lien Secured Revolving Loan	1.00%	SOFR	5.50%	10.25%	09/11/24	05/04/29	29		29		30	0.1
Cennox Holdings Limited (d/b/a Cennox)⁽⁸⁾	First Lien Secured Revolving Loan	1.00%	SONIA	5.50%	10.40%	09/11/24	05/04/29	—		—		2	—
MGT Merger Target, LLC (d/b/a MGT Consulting Group)	First Lien Secured Term Loan	1.00%	SOFR	6.39%	10.85%	05/10/23	04/10/29	7,187		7,040		7,176	20.7
MGT Merger Target, LLC (d/b/a MGT Consulting Group)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.97%	10.51%	05/10/23	04/10/29	821		804		817	2.4
MGT Merger Target, LLC (d/b/a MGT Consulting Group)	First Lien Secured Revolving Loan	1.00%	Prime	5.50%	13.00%	05/10/23	04/10/28	241		236		249	0.7
RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)	First Lien Secured Term Loan	1.00%	SOFR	5.25%	9.73%	01/27/21	01/02/29	10,923		10,839		10,923	31.6
RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	5.25%	9.99%	01/27/21	01/02/29	2,946		2,922		2,946	8.5
RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)⁽⁶⁾	First Lien Secured Revolving Loan	1.00%	SOFR	5.25%	9.99%	01/27/21	01/02/29	—		—		11	—
Turnberry Solutions, Inc.	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.21%	08/10/21	09/02/26	5,964		5,924		5,964	17.2
Turnberry Solutions, Inc.	First Lien Secured Revolving Loan	1.00%	SOFR	5.75%	10.21%	08/10/21	09/02/26	—		—		4	—
										32,427		32,720	94.6
Packaged Foods & Meats
PANOS Brands, LLC	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.13%	06/14/24	05/14/29	4,520		4,441		4,505	13.0
PANOS Brands, LLC	First Lien Secured Revolving Loan	1.00%	SOFR	5.75%	10.15%	06/14/24	05/14/29	30		30		36	0.1
TableTrust Brands LLC (d/b/a Hain Pure Protein Corporation)	First Lien Secured Term Loan	1.00%	SOFR	5.75%	10.22%	12/24/24	06/28/28	2,505		2,468		2,468	7.1
										6,939		7,009	20.2
Paper & Plastic Packaging Products & Materials
LINC Systems, LLC	First Lien Secured Term Loan	1.00%	SOFR	8.50%	12.99%	06/22/21	02/24/26	8,155		8,114		8,155	23.7
LINC Systems, LLC	First Lien Secured Revolving Loan	1.00%	SOFR	8.50%	12.99%	06/22/21	02/24/26	—		—		3	—
Max Solutions, Inc.⁽¹³⁾	First Lien Secured Term Loan	1.00%	SOFR	8.11%	12.57%	10/07/22	09/29/28	6,521		6,439		6,324	18.3
Max Solutions, Inc.⁽¹³⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	8.10%	12.56%	10/07/22	09/29/28	414		411		402	1.2
Max Solutions, Inc.⁽¹⁰⁾	First Lien Secured Revolving Loan	1.00%	CORRA	8.10%	12.56%	10/07/22	09/29/28	—		—		(3)	—
										14,964		14,881	43.2

Table of Contents

WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
Pharmaceuticals
Meta Buyer LLC (d/b/a Metagenics, Inc.)⁽⁹⁾	First Lien Secured Term Loan	1.00%	EurIBOR	6.00%	8.85%	12/16/21	11/01/27	12,039	$	13,449	$	12,465	36.0	%
Meta Buyer LLC (d/b/a Metagenics, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	10.48%	12/16/21	11/01/27	962		952		962	2.8
Meta Buyer LLC (d/b/a Metagenics, Inc.)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	10.51%	12/16/21	11/01/27	874		865		874	2.5
Meta Buyer LLC (d/b/a Metagenics, Inc.)	First Lien Secured Revolving Loan	1.00%	SOFR	6.00%	10.44%	12/16/21	11/01/27	1,156		1,145		1,160	3.4
										16,411		15,461	44.7
Real Estate Services
HRG Management, LLC (d/b/a HomeRiver Group, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.25%	11.02%	12/28/21	10/19/26	5,563		5,523		5,395	15.6
HRG Management, LLC (d/b/a HomeRiver Group, LLC)⁽¹¹⁾	First Lien Secured Delayed Draw Loan	1.00%	Base Rate	6.97%	11.29%	02/18/22	10/19/26	1,395		1,384		1,354	3.9
HRG Management, LLC (d/b/a HomeRiver Group, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	11.02%	02/18/22	10/19/26	483		480		455	1.3
NPAV Lessor Corp. (d/b/a Nationwide Property & Appraisal Services, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.96%	03/01/22	01/21/27	6,502		6,448		5,918	17.1
NPAV Lessor Corp. (d/b/a Nationwide Property & Appraisal Services, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	10.96%	03/01/22	01/21/27	725		719		660	1.9
										14,554		13,782	39.8
Research & Consulting Services
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)	First Lien Secured Term Loan	0.75%	SOFR	6.00%	10.51%	01/10/24	11/21/29	3,617		3,543		3,574	10.3
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)⁽⁶⁾	First Lien Secured Delayed Draw Loan	0.75%	SOFR	6.00%	10.51%	01/10/24	11/21/29	—		—		(2)	—
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)	First Lien Secured Revolving Loan	0.75%	Prime	5.00%	12.50%	01/10/24	11/21/28	60		58		63	0.2
E-Phoenix Acquisition Co. Inc. (d/b/a Integreon, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	9.98%	07/15/21	06/23/27	8,342		8,299		8,342	24.1
										11,900		11,977	34.6
Technology Hardware, Storage & Peripherals
Source Code Holdings, LLC (d/b/a Source Code Corporation)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	10.96%	08/10/21	07/30/27	14,162		14,041		14,095	40.7
Source Code Holdings, LLC (d/b/a Source Code Corporation)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.50%	10.96%	08/10/21	07/30/27	3,872		3,839		3,854	11.1
										17,880		17,949	51.8
Wireless Telecommunication Services
KORE Wireless Group Inc. (d/b/a KORE Group Holdings, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.02%	11/27/23	11/09/28	6,354		6,256		6,323	18.3
KORE Wireless Group Inc. (d/b/a KORE Group Holdings, Inc.)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.02%	11/27/23	11/09/28	—		—		9	—
										6,256		6,332	18.3
Total Investments									$	296,752	$	294,957	852.3	%

Money market funds (included in cash and cash equivalents and restricted cash and cash equivalents)
Goldman Sachs Money Market Fund (CUSIP: 38141W315)⁽¹²⁾					4.33%				$	242	$	242	0.7	%
Invesco Treasury Money Market Fund (CUSIP: X9USDINVE)⁽¹²⁾					4.39%					525		525	1.5
Total Money Market Funds										767		767	2.2
Total Investments and Money Market Funds									$	297,519	$	295,724	854.5	%

Table of Contents

WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Forward Currency Contracts


Counterparty	Currency to be sold			Currency to be purchased		Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	958	CAD	$	691 USD	2/7/2024	$	—	$	(33)
Morgan Stanley	€	1,181	EUR	$	1,249 USD	2/7/2024		—		(56)
Morgan Stanley	£	1,340	GBP	$	1,625 USD	2/7/2024		—		(83)
Total							$	—	$	(172)

(1)	Except as noted, all investments provide collateral for the STRS JV Credit Facility and are domiciled in the United States.

(2)	The investments bear interest at a rate that may be determined by reference SOFR, CDOR, SONIA, Prime, EurIBOR, which resets monthly, quarterly or semiannually.

(3)	The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the PIK interest rate, as the case may be.

(4)	Except as otherwise noted, all of the STRS JV’s portfolio company investments, which as of the date of the portfolio represented 852.3% of STRS JV’s members’ equity or 95.4% of STRS JV’s total assets, are subject to legal restrictions on sales.

(5)	The fair value of each investment was determined using significant unobservable inputs.

(6)	The investment or a portion of the investment does not provide collateral for the STRS JV Credit Facility.

(7)	The issuer is domiciled in Canada.

(8)	Principal amount is denominated in GBP and the issuer is domiciled in the United Kingdom.

(9)	Principal amount is denominated in Euros.

(10)	Principal amount is denominated in CAD.

(11)	The investment was comprised of two contracts, which were indexed to Prime and a different base rate, SOFR, SONIA or CDOR. The Floor, Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

(12)	The rate shown is the annualized seven-day yield as of December 31, 2024.

(13)

Investment is structured as a unitranche loan in which the STRS JV may receive additional interest on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

Table of Contents

WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Below is a listing of STRS JV’s individual investments as of December 31, 2023:


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
Debt Investments
Advertising
Forward Solutions, LLC (d/b/a Avision Sales Group)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.25%	02/18/22	12/15/26	9,100	$	8,991	$	9,014	26.0	%
Forward Solutions, LLC (d/b/a Avision Sales Group)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.75%	12.25%	03/11/22	12/15/26	3,054		3,018		3,025	8.7
Forward Solutions, LLC (d/b/a Avision Sales Group)	First Lien Secured Revolving Loan	1.00%	SOFR	6.75%	12.25%	02/18/22	12/15/26	—		—		1	—
										12,009		12,040	34.7
Air Freight & Logistics
ITS Buyer Inc. (d/b/a ITS Logistics, LLC)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	11.11%	02/17/22	06/15/26	3,541		3,503		3,504	10.1
ITS Buyer Inc. (d/b/a ITS Logistics, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	5.50%	11.11%	02/17/22	06/15/26	—		—		—	—
										3,503		3,504	10.1
Broadline Retail
Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.99%	07/19/19	07/01/25	18,908		18,798		18,762	54.1
Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.99%	07/19/19	07/01/25	—		—		(3)	—
										18,798		18,759	54.1
Building Products
Drew Foam Companies Inc	First Lien Secured Term Loan	1.00%	SOFR	7.25%	12.75%	11/09/20	11/05/25	13,644		13,541		13,313	38.4
										13,541		13,313	38.4
Construction & Engineering
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	11.38%	12/21/23	01/02/29	3,091		3,015		3,015	8.7
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	11.38%	12/21/23	01/02/29	1,400		1,366		1,365	3.8
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)	First Lien Secured Revolving Loan	1.00%	SOFR	6.00%	11.37%	12/21/23	01/02/29	196		191		191	0.6
Pavement Partners Interco, LLC (d/b/a Pave America, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.27%	03/17/23	02/07/28	4,455		4,344		4,405	12.7
Pavement Partners Interco, LLC (d/b/a Pave America, LLC)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.75%	12.42%	03/17/23	02/07/28	575		560		569	1.6
Pavement Partners Interco, LLC (d/b/a Pave America, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.75%	12.42%	03/17/23	02/07/28	—		—		5	—
										9,476		9,550	27.4
Data Processing & Outsourced Services
Geo Logic Systems Ltd.^(7)(10)	First Lien Secured Term Loan	1.00%	CDOR	6.50%	11.94%	01/22/20	12/19/24	19,416		14,969		14,654	42.3
Geo Logic Systems Ltd.^(7)(10)	First Lien Secured Revolving Loan	1.00%	CDOR	6.50%	11.94%	01/22/20	12/19/24	—		—		5	—
										14,969		14,659	42.3
Diversified Support Services
Pirtek Holdco, LLC (d/b/a Pirtek USA, LLC)	First Lien Secured Term Loan	1.00%	SOFR	5.75%	11.20%	10/31/23	10/26/28	7,500		7,337		7,337	21.2
Pirtek Holdco, LLC (d/b/a Pirtek USA, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	5.75%	11.20%	10/31/23	10/26/28	—		—		—	—
Quest Events, LLC	First Lien Secured Term Loan	2.00%	SOFR	7.25%	12.86%	07/19/19	09/30/26	11,709		11,663		11,557	33.3
Quest Events, LLC	First Lien Secured Revolving Loan	2.00%	SOFR	7.25%	12.86%	07/19/19	09/30/26	247		246		242	0.7
										19,246		19,136	55.2

Table of Contents

WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
Electronic Equipment & Instruments
LMG Holdings, Inc.	First Lien Secured Term Loan	1.00%	SOFR	6.50%	12.00%	06/28/21	04/30/26	13,330	$	13,203	$	13,265	38.3	%
LMG Holdings, Inc.	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	12.00%	06/28/21	04/30/26	—		—		4	—
										13,203		13,269	38.3
Environmental & Facilities Services
Buckeye Acquiror LLC (d/b/a Superior Environmental Solutions, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	08/09/23	08/01/29	5,985		5,845		5,898	17.0
Buckeye Acquiror LLC (d/b/a Superior Environmental Solutions, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.96%	08/09/23	08/01/29	180		176		181	0.5
Buckeye Acquiror LLC (d/b/a Superior Environmental Solutions, LLC)⁽⁶⁾	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.50%	11.96%	08/09/23	08/01/29	—		—		(3)	—
Juniper Landscaping Holdings LLC	First Lien Secured Term Loan	1.00%	SOFR	6.25%	11.86%	03/01/22	12/29/26	11,192		11,073		11,080	32.0
Juniper Landscaping Holdings LLC	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.25%	11.94%	03/01/22	12/29/26	2,366		2,341		2,342	6.8
Juniper Landscaping Holdings LLC	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	12.11%	03/01/22	12/29/26	199		197		193	0.6
										19,632		19,691	56.9
Health Care Services
Maxor Acquisition, Inc. (d/b/a Maxor National Pharmacy Services, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.48%	04/11/23	03/01/29	5,053		4,922		5,013	14.5
Maxor Acquisition, Inc. (d/b/a Maxor National Pharmacy Services, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.75%	12.48%	04/11/23	03/01/29	—		—		9	—
										4,922		5,022	14.5
Health Care Supplies
Arteriocyte Medical Systems, Inc. (d/b/a ISTO Biologics)	First Lien Secured Term Loan	1.00%	SOFR	6.25%	11.60%	10/25/23	10/18/28	5,022		4,901		4,901	14.1
Arteriocyte Medical Systems, Inc. (d/b/a ISTO Biologics)	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	11.60%	10/25/23	10/18/28	—		—		—	—
Medical Device Inc. (d/b/a Arterex)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.95%	07/27/23	07/11/29	2,660		2,599		2,626	7.6
Medical Device Inc. (d/b/a Arterex)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.95%	07/27/23	07/11/29	—		—		3	—
										7,500		7,530	21.7
Household Appliances
Smalto Inc. (d/b/a PEMCO International)⁽⁹⁾	First Lien Secured Term Loan	1.00%	EurIBOR	6.25%	10.18%	05/04/22	04/28/28	6,576		6,821		7,172	20.7
Smalto Inc. (d/b/a PEMCO International)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	11.50%	05/04/22	04/28/28	1,001		987		996	2.9
										7,808		8,168	23.6
Industrial Machinery & Supplies & Components
Pennsylvania Machine Works, LLC (d/b/a Penn Western)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	11.61%	03/25/22	03/08/27	6,561		6,498		6,561	18.9
										6,498		6,561	18.9
Investment Banking & Brokerage
TOUR Intermediate Holdings, LLC	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	05/19/20	05/15/25	2,657		2,643		2,657	7.7
TOUR Intermediate Holdings, LLC	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.50%	11.96%	05/19/20	05/15/25	2,320		2,315		2,320	6.7
										4,958		4,977	14.4

Table of Contents

WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
IT Consulting & Other Services
ATSG, Inc.	First Lien Secured Term Loan	1.00%	SOFR	6.50%	12.04%	03/27/23	11/12/26	9,873	$	9,678	$	9,771	28.2	%
Cennox Holdings Limited (d/b/a Cennox)^(8)(14)	First Lien Secured Term Loan	1.00%	SONIA	6.25%	11.59% (11.34% Cash + 0.25% PIK)	07/16/21	05/04/26	2,825		3,863		3,538	10.2
Cennox, Inc. (d/b/a Cennox)⁽⁹⁾	First Lien Secured Term Loan	1.00%	EurIBOR	6.50%	10.44% (10.19% Cash + 0.25% PIK)	06/28/22	05/04/26	9,422		9,851		10,257	29.6
Cennox Holdings Limited (d/b/a Cennox)^(8)(14)	First Lien Secured Revolving Loan	1.00%	SONIA	6.25%	11.56% (11.31% Cash + 0.25% PIK)	07/16/21	05/04/26	864		1,182		1,082	3.1
MGT Merger Target, LLC (d/b/a MGT Consulting Group)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.98%	05/10/23	04/10/29	6,247		6,084		6,194	17.9
MGT Merger Target, LLC (d/b/a MGT Consulting Group)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.50%	11.98%	05/10/23	04/10/29	392		378		389	1.1
MGT Merger Target, LLC (d/b/a MGT Consulting Group)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.98%	05/10/23	04/10/28	—		—		11	—
RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	11.50%	01/27/21	12/31/26	11,036		10,925		10,993	31.7
RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	11.53%	01/27/21	12/31/26	2,976		2,945		2,965	8.6
RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)⁽⁶⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.00%	11.58%	01/27/21	12/31/26	107		106		114	0.3
Turnberry Solutions, Inc.	First Lien Secured Term Loan	1.00%	SOFR	5.75%	11.45%	08/10/21	09/02/26	6,026		5,962		5,979	17.2
Turnberry Solutions, Inc.	First Lien Secured Revolving Loan	1.00%	SOFR	5.75%	11.45%	08/10/21	09/02/26	—		—		2	—
										50,974		51,295	147.9
Packaged Foods & Meats
Poultry Holdings LLC (HPP)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96% (11.21% Cash + 0.75% PIK)	10/21/19	06/28/25	6,939		6,904		6,904	19.9
										6,904		6,904	19.9
Paper & Plastic Packaging Products & Materials
LINC Systems, LLC	First Lien Secured Term Loan	1.00%	SOFR	6.25%	11.93%	06/22/21	02/24/26	8,534		8,454		8,443	24.4
LINC Systems, LLC	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	11.93%	06/22/21	02/24/26	—		—		(1)	—
Max Solutions, Inc.⁽¹³⁾	First Lien Secured Term Loan	1.00%	SOFR	7.66%	13.15%	10/07/22	09/29/28	6,589		6,485		6,488	18.7
Max Solutions, Inc.^(6)(13)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	7.66%	13.15%	10/07/22	09/29/28	—		—		(17)	—
Max Solutions, Inc.⁽¹⁰⁾	First Lien Secured Revolving Loan	1.00%	CDOR	7.66%	13.15%	10/07/22	09/29/28	—		—		—	—
										14,939		14,913	43.1
Personal Care Products
Sunless, Inc.	First Lien Secured Term Loan	1.00%	SOFR	6.75%	12.20%	10/21/19	08/13/25	5,507		5,459		5,473	15.8
Sunless, Inc.⁽⁶⁾	First Lien Secured Revolving Loan	1.00%	SOFR	6.75%	12.21%	10/21/19	08/13/25	488		485		484	1.4
										5,944		5,957	17.2
Pharmaceuticals
Meta Buyer LLC (d/b/a Metagenics, Inc.)⁽⁹⁾	First Lien Secured Term Loan	1.00%	EurIBOR	6.00%	9.87%	12/16/21	11/01/27	12,163		13,552		13,401	38.7
Meta Buyer LLC (d/b/a Metagenics, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.00%	11.46%	12/16/21	11/01/27	971		959		971	2.8
Meta Buyer LLC (d/b/a Metagenics, Inc.)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.00%	11.56%	12/16/21	11/01/27	883		871		883	2.5
Meta Buyer LLC (d/b/a Metagenics, Inc.)	First Lien Secured Revolving Loan	1.00%	SOFR	6.00%	11.53%	12/16/21	11/01/27	1,156		1,141		1,161	3.3
										16,523		16,416	47.3

Table of Contents

WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)


Issuer	Investment Type⁽¹⁾	Floor	Reference Rate⁽²⁾	Spread Above Index	Interest Rate⁽³⁾	Acquisition Date⁽⁴⁾	Maturity Date	Principal/ Share Amount	Amortized Cost		Fair Value⁽⁵⁾		Fair Value As A Percentage of Members' Equity
Real Estate Services
HRG Management, LLC (d/b/a HomeRiver Group, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.25%	11.80%	12/28/21	10/19/26	9,555	$	9,448	$	9,074	26.2	%
HRG Management, LLC (d/b/a HomeRiver Group, LLC)^(6)(11)	First Lien Secured Delayed Draw Loan	1.00%	Base Rate	6.22%	12.10%	02/18/22	10/19/26	2,398		2,369		2,282	6.6
HRG Management, LLC (d/b/a HomeRiver Group, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.25%	11.80%	02/18/22	10/19/26	596		589		547	1.6
NPAV Lessor Corp. (d/b/a Nationwide Property & Appraisal Services, LLC)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	03/01/22	01/21/27	7,510		7,418		6,706	19.3
NPAV Lessor Corp. (d/b/a Nationwide Property & Appraisal Services, LLC)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.96%	03/01/22	01/21/27	725		716		647	1.9
										20,540		19,256	55.6
Research & Consulting Services
E-Phoenix Acquisition Co. Inc. (d/b/a Integreon, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	5.50%	11.00%	07/15/21	06/23/27	8,604		8,541		8,562	24.7
Solar Holdings Bidco Limited (d/b/a SLR Consulting Ltd.)^(13)(14)	First Lien Secured Term Loan	0.50%	SOFR	6.50%	11.85%	03/23/23	09/28/29	2,807		2,744		2,786	8.0
Solar Holdings Bidco Limited (d/b/a SLR Consulting Ltd.)^(10)(13)(14)	First Lien Secured Term Loan	0.50%	CDOR	6.50%	11.94%	03/23/23	09/28/29	3,873		2,759		2,892	8.3
Solar Holdings Bidco Limited (d/b/a SLR Consulting Ltd.)^(8)(13)(14)	First Lien Secured Term Loan	0.00%	SONIA	6.50%	11.72%	03/23/23	09/28/29	171		205		217	0.6
Solar Holdings Bidco Limited (d/b/a SLR Consulting Ltd.)^(13)(14)	First Lien Secured Delayed Draw Loan	0.50%	SOFR	6.50%	11.85%	03/23/23	09/28/29	368		360		366	1.1
Solar Holdings Bidco Limited (d/b/a SLR Consulting Ltd.)^(8)(13)(14)	First Lien Secured Delayed Draw Loan	0.00%	SONIA	6.50%	11.71%	03/23/23	09/28/29	723		882		984	2.8
Solar Holdings Bidco Limited (d/b/a SLR Consulting Ltd.)^(10)(13)(14)	First Lien Secured Delayed Draw Loan	0.50%	CDOR	6.50%	12.08%	03/23/23	09/28/29	458		324		342	1.0
Solar Holdings Bidco Limited (d/b/a SLR Consulting Ltd.)^(12)(13)(14)	First Lien Secured Delayed Draw Loan	0.50%	SOFR	6.50%	11.85%	03/23/23	09/28/29	—		—		—	—
										15,815		16,149	46.5
Technology Hardware, Storage & Peripherals
Source Code Holdings, LLC (d/b/a Source Code Corporation)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.96%	08/10/21	07/30/27	14,952		14,772		14,806	42.7
Source Code Holdings, LLC (d/b/a Source Code Corporation)	First Lien Secured Delayed Draw Loan	1.00%	SOFR	6.50%	11.96%	08/10/21	07/30/27	4,088		4,039		4,047	11.7
										18,811		18,853	54.4
Wireless Telecommunication Services
KORE Wireless Group Inc. (d/b/a KORE Group Holdings, Inc.)	First Lien Secured Term Loan	1.00%	SOFR	6.50%	11.88%	11/27/23	11/09/28	6,418		6,294		6,295	18.2
KORE Wireless Group Inc. (d/b/a KORE Group Holdings, Inc.)	First Lien Secured Revolving Loan	1.00%	SOFR	6.50%	11.88%	11/27/23	11/09/28	—		—		—	—
										6,294		6,295	18.2

Total Investments									$	312,807	$	312,217	900.6	%

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Forward Currency Contracts


Counterparty	Currency to be sold			Currency to be purchased		Settlement date	Unrealized appreciation		Unrealized depreciation
Morgan Stanley	C$	256	CAD	$	189 USD	1/27/2023	$	—	$	(1)
Morgan Stanley	€	1,111	EUR	$	1,128 USD	1/27/2023		—		(64)
Morgan Stanley	£	229	GBP	$	266 USD	1/27/2023		—		(10)
Total							$	—	$	(75)

(1)	Except as noted, all investments provide collateral for the STRS JV Credit Facility.

(2)	The investments bear interest at a rate that may be determined by reference to LIBOR, which resets monthly, quarterly or semiannually, SOFR, CDOR, Prime, or EurIBOR.

(3)	The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the PIK interest rate, as the case may be.

(4)	Except as otherwise noted, all of the STRS JV’s portfolio company investments, which as of the date of the portfolio represented 900.6% of STRS JV’s members’ equity or 94.0% of STRS JV’s total assets, are subject to legal restrictions on sales.

(5)	The fair value of each investment was determined using significant unobservable inputs.

(6)	The investment or a portion of the investment does not provide collateral for the STRS JV Credit Facility.

(7)	The issuer is domiciled in Canada.

(8)	Principal amount is denominated in GBP.

(9)	Principal amount is denominated in Euros.

(10)	Principal amount is denominated in CAD.

(11)	The investment was comprised of two contracts, which were indexed to Prime and a different base rate, SOFR, SONIA or CDOR. The Floor, Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

(12)	Principal amount is non-USD denominated and is based in British pounds. At the option of the borrower, amounts borrowed under the delayed draw term loan commitment can be U.S. dollars, Canadian dollars or British pounds.

(13)

(14)	The issuer is domiciled in the United Kingdom.

As of December 31, 2024, the portfolio companies underlying the STRS JV investments are all located in the United States and its territories except for Geo Logic Systems Ltd., which is domiciled in Canada, and Cennox Holdings Limited which is domiciled in the United Kingdom. As of December 31, 2023, the portfolio companies underlying the STRS JV investments are all located in the United States and its territories except for Geo Logic Systems Ltd., which is domiciled in Canada, and Cennox Holdings Limited and Solar Holdings Bidco Limited, which are domiciled in the United Kingdom.

As of December 31, 2024 and December 31, 2023, STRS JV had no investments on non-accrual status. STRS JV had outstanding commitments to fund investments totaling $24,724, and $21,063 under delayed draw term loan commitments and undrawn revolvers as of December 31, 2024 and December 31, 2023, respectively.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Below is certain summarized financial information for STRS JV as of December 31, 2024 and December 31, 2023 and for the years ended December 31, 2024, 2023 and 2022:


Selected Balance Sheet Information ($ in thousands)	As of December 31, 2024		As of December 31, 2023
Assets
Investments, at fair value (amortized cost of $296,752 and $312,807, respectively)	$	294,957	$	312,217
Cash and cash equivalents		12,454		14,625
Interest receivable		1,427		2,540
Amounts receivable on unsettled investment transactions		143		2,687
Unrealized appreciation on foreign currency forward contracts		64		—
Other assets		32		91
Total assets	$	309,077	$	332,160
Liabilities
Credit facility (net of unamortized debt issuance costs of $3,024 and $1,850, respectively)	$	141,057	$	163,394
Note payable to members		128,459		128,459
Interest payable on credit facility		807		1,013
Interest payable on notes to members		3,589		3,799
Unrealized depreciation on foreign currency forward contracts		—		172
Other liabilities		558		657
Total liabilities		274,470		297,494
Members’ equity		34,607		34,666
Total liabilities and members’ equity	$	309,077	$	332,160


	Year Ended December 31,
Selected Statement of Operations Information ($ in thousands)	2024		2023		2022
Interest and fee income	$	39,833	$	40,334	$	28,956
Total investment income	$	39,833	$	40,334	$	28,956
Interest expense on credit facility		14,433		14,558		7,470
Interest expense on notes to members		14,971		14,403		9,680
Administrative fee		651		652		629
Other expenses		816		636		564
Total expenses	$	30,871	$	30,249	$	18,343
Net investment income		8,962		10,085		10,613
Net realized gains (losses) on investments and foreign currency transactions		91		312		329
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		1,329		1,229		(875)
Net increase in members’ equity resulting from operations	$	10,382	$	11,626	$	10,067

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

NOTE 5 – FAIR VALUE MEASUREMENTS

Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active public markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about what market participants would use in pricing an asset or liability.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the financial instrument.

A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of the Level 3 category as of the beginning of the quarter in which the reclassifications occur. During the year ended December 31, 2024 and year ended December 31, 2023, there were no changes in the observability of valuation inputs that would have resulted in a reclassification of assets between any levels.

Fair value for each investment is derived using a combination of valuation methodologies that, in the judgment of the Investment Committee are most relevant to such investment, including, without limitation, being based on one or more of the following: (i) market prices obtained from market makers for which the Investment Committee has deemed there to be enough breadth (number of quotes) and depth (firm bids) to be indicative of fair value, (ii) the price paid or realized in a completed transaction or binding offer received in an arm’s-length transaction, (iii) a discounted cash flow analysis, (iv) the guideline public company method, (v) the similar transaction method or (vi) the option pricing method.

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of December 31, 2024:


	Level 1		Level 2		Level 3		Total
First lien secured loans	$	—	$	—	$	502,693	$	502,693
Second lien secured loans		—		—		8,342		8,342
Unsecured loans		—		—		1,175		1,175
Subordinated Note to STRS JV		—		—		84,416		84,416
Equity (excluding STRS JV)		—		—		22,846		22,846
Equity in STRS JV⁽¹⁾		—		—		—		22,741
Total investments	$	—	$	—	$	619,472	$	642,213

(1)

The Company’s equity investment in STRS JV is measured using the net asset value per share as a practical expedient for fair value, and thus has not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of assets and liabilities.

The Company’s money market funds (included in cash and cash equivalents and restricted cash and cash equivalents), which were valued at $13,249 as of December 31, 2024, are characterized in Level 1 of the fair value hierarchy.

The Company’s forward currency contracts, which were valued at $20 as of December 31, 2024, are characterized in Level 2 of the hierarchy.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of December 31, 2023:


	Level 1		Level 2		Level 3		Total
First lien secured loans	$	—	$	—	$	553,085	$	553,085
Second lien secured loans		—		—		19,039		19,039
Unsecured loans		—		—		167		167
Subordinated Note to STRS JV		—		—		84,416		84,416
Equity (excluding STRS JV)		—		—		16,679		16,679
Equity in STRS JV⁽¹⁾		—		—		—		22,782
Total investments	$	—	$	—	$	673,386	$	696,168

(1)

The Company’s equity investment in STRS JV is measured using the NAV per share as a practical expedient for fair value, and thus has not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of assets and liabilities.

The Company’s money market funds (included in cash and cash equivalents and restricted cash and cash equivalents), which were valued at $11,312 as of December 31, 2023, are characterized in Level 1 of the fair value hierarchy.

The Company’s forward currency contracts, which were valued at ($43) as of December 31, 2023, are characterized in Level 2 of the hierarchy.

The following table presents the changes in investments measured at fair value using Level 3 inputs for the year ended December 31, 2024:


	First Lien		Second Lien				Subordinated
	Secured		Secured		Unsecured		Notes to STRS				Total
Year ended December 31, 2024	Loans		Loans		Loans		JV		Equity		Investments
Fair value, beginning of period	$	553,085	$	19,039	$	167	$	84,416	$	16,679	$	673,386
Funding of investments		206,830		—		—		—		453		207,283
Non-cash interest income		6,786		380		94		—		—		7,260
Accretion of discount		4,084		22		5		—		—		4,111
Proceeds from paydowns and sales		(241,304)		(2,039)		—		—		(1,403)		(244,746)
Conversions		(8,852)		(11,769)		886		—		19,735		—
Realized gains (losses)		(10,985)		(5,817)		—		—		(1,886)		(18,688)
Net unrealized appreciation (depreciation)		(6,951)		8,526		23		—		(10,732)		(9,134)
Fair value, end of period	$	502,693	$	8,342	$	1,175	$	84,416	$	22,846	$	619,472
Change in unrealized appreciation (depreciation) on investments still held as of December 31, 2024	$	(17,190)	$	259	$	23	$	—	$	(10,151)	$	(27,059)

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

The following table presents the changes in investments measured at fair value using Level 3 inputs for the year ended December 31, 2023:


	First Lien		Second Lien				Subordinated
	Secured		Secured		Unsecured		Notes to STRS				Total
Year ended December 31, 2023	Loans		Loans		Notes		JV		Equity		Investments
Fair value, beginning of period	$	618,267	$	20,634	$	167	$	80,000	$	21,000	$	740,068
Funding of investments		143,792		—		—		4,416		1,216		149,424
Non-cash interest income		5,471		267		—		—		—		5,738
Accretion of discount (premium)		4,411		82		—		—		—		4,493
Proceeds from paydowns and sales		(195,496)		(233)		—		—		(6,605)		(202,334)
Conversions		(7,232)		2,695		—		—		4,537		—
Realized gains (losses)		(518)		22		—		—		(338)		(834)
Net unrealized appreciation (depreciation)		(15,610)		(4,428)		—		—		(3,131)		(23,169)
Fair value, end of period	$	553,085	$	19,039	$	167	$	84,416	$	16,679	$	673,386
Change in unrealized appreciation (depreciation) on investments still held as of December 31, 2023	$	(17,346)	$	(4,430)	$	—	$	—	$	(3,694)	$	(25,471)

The significant unobservable inputs used in the fair value measurement of the Company’s investments are the discount rate, market quotes and exit multiples. An increase or decrease in the discount rate in isolation would result in significantly lower or higher fair value measurement, respectively. An increase or decrease in the market quote for an investment would in isolation result in significantly higher or lower fair value measurement, respectively. An increase or decrease in the exit multiple would in isolation result in significantly higher or lower fair value measurement, respectively. As the fair value of a debt investment diverges from par, which would generally be the case for non-accrual loans, the fair value measurement of that investment is more susceptible to volatility from changes in exit multiples as a significant unobservable input.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

The following tables summarize the significant unobservable inputs the Company used to value the majority of its investments categorized within Level 3 as of December 31, 2024 and December 31, 2023. The tables are not intended to be all-inclusive, but instead capture the significant unobservable inputs relevant to the Company’s determination of fair values. These ranges represent the significant unobservable inputs that were used in the valuation of each type of investment, but they do not represent a range of values for any one investment.


		Fair Value as of	Valuation	Unobservable	Range
Investment Type		December 31, 2024	Techniques	Inputs	(Weighted Average)⁽¹⁾
First lien secured loans	$	439,577	Discounted cash flow analysis	Discount Rate	7.7% - 26.8% (13.1%)
		19,554	Recent transaction	Transaction Price	98.0 - 100.0 (98.5)
		22,923	Enterprise value analysis	EBITDA Multiple	5.8 - 8.0 (6.9)
		1,635	Enterprise value analysis	Revenue Multiple	1.4 - 1.4 (1.4)
		9,104	Expected repayment	Transaction Price	103.0 - 103.0 (103.0)
		373	Collateral analysis	Recovery Rate	0.0 - 15.0 (15.0)
		9,453	Market quotations	Broker quoted price	96.8 - 96.8 (96.8)
		74	Option pricing Model	Volatility	16.0 - 16.0 (16.0)
Second lien secured loans		8,342	Discounted cash flow analysis	Discount rate	11.7% - 12.5% (12.0%)
Unsecured loans		1,175	Discounted cash flow analysis	Discount rate	12.3% - 12.9% (12.6%)
Subordinated Notes to STRS JV		84,416	Enterprise value analysis	n/a	n/a
Common equity		10,728	Enterprise value analysis	EBITDA multiple	5.3 - 13.7 (9.8)
		9,132	Enterprise value analysis	Revenue Multiple	1.4 - 2.0 (2.0)
Preferred equity		2,916	Enterprise value analysis	EBITDA multiple	6.5 - 12.1 (7.5)
Warrant		70	Enterprise value analysis	EBITDA multiple	5.5 - 5.5 (5.5)
Total Level 3 Investments	$	619,472

(1)	Unobservable inputs were weighted by the relative fair value of the investments.


		Fair Value as of	Valuation	Unobservable	Range
Investment Type		December 31, 2023	Techniques	Inputs	(Weighted Average)⁽¹⁾
First lien secured loans	$	507,946	Discounted cash flow analysis	Discount rate	11.0% - 30.3% (13.9%)
		34,016	Recent transaction	Transaction price	89.0 - 98.8 (96.2)
		10,477	Enterprise value analysis	EBITDA multiple	8.6 - 8.6 (8.6)
		646	Option pricing Model	Volatility	17.2 - 17.2 (17.2)
Second lien secured loans		17,438	Discounted cash flow analysis	Discount rate	11.4% - 24.0% (18.8%)
		1,601	Enterprise value analysis	EBITDA multiple	6.3 - 6.3 (6.3)
Unsecured loans		167	Enterprise value analysis	EBITDA multiple	7.1 - 7.1 (7.1)
Subordinated Notes to STRS JV		84,416	Enterprise value analysis	n/a	n/a
Common equity		3,175	Discounted cash flow analysis	Discount rate	14.7% - 30.3% (16.6%)
		6,927	Enterprise value analysis	EBITDA multiple	5.5 - 13.2 (8.8)
		709	Recent transaction	Transaction price	1.0 - 1.0 (1.0)
Preferred equity		832	Discounted cash flow analysis	Discount rate	29.9% - 30.3% (29.9%)
		1,511	Enterprise value analysis	EBITDA multiple	6.0 - 10.5 (6.7)
Warrant		3,525	Discounted cash flow analysis	Discount rate	26.2% - 30.2% (26.3%)
Total Level 3 Investments	$	673,386

(1)	Unobservable inputs were weighted by the relative fair value of the investments.

Valuation of investments may be determined by weighting various valuation techniques. Significant judgment is required in selecting the assumptions used to determine the fair values of these investments. The valuation methods selected for a particular investment are based on the circumstances and on the sufficiency of data available to measure fair value. If more than one valuation method is used to measure fair value, the results are evaluated and weighted, as appropriate, considering the reasonableness of the range indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances.

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the nature of the instrument, whether the instrument is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires a greater degree of judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

The determination of fair value using the selected methodologies takes into consideration a range of factors including the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public and private exchanges for comparable securities, current and projected operating performance and financing transactions subsequent to the acquisition of the investment, compliance with agreed upon terms and covenants, and assessment of credit ratings of an underlying borrower. These valuation methodologies involve a significant degree of judgment to be exercised.

As it relates to investments which do not have an active public market, there is no single standard for determining the estimated fair value. Valuations of privately held investments are inherently uncertain, and they may fluctuate over short periods of time and may be based on estimates. The determination of fair value may differ materially from the values that would have been used if a ready market for these investments existed.

In some cases, fair value for such investments is best expressed as a range of values derived utilizing different methodologies from which a single estimate may then be determined. Consequently, fair value for each investment may be derived using a combination of valuation methodologies that, in the judgment of the investment professionals, are most relevant to such investment. The selected valuation methodologies for a particular investment are consistently applied on each measurement date. However, a change in a valuation methodology or its application from one measurement date to another is possible if the change results in a measurement that is equally or more representative of fair value in the circumstances.

The following table presents the principal amount and fair value of the Company’s borrowings as of December 31, 2024 and December 31, 2023. As of December 31, 2024 and December 31, 2023, the Credit Facility (as defined in Note 6) approximates its carrying value presented net of unamortized debt issuances costs and issuance discount, net of accretion. The fair value of the Company’s 5.375% private notes due 2025 (the “5.375% 2025 Notes”), the 5.375% private notes due 2026 (the “5.375% 2026 Notes”), the 4.00% notes due 2026 (the “4.000% 2026 Notes”), the 5.625% private notes due 2027 (the “5.625% 2027 Notes”) and the 4.25% private notes due 2028 (the “4.250% 2028 Notes”) were estimated using discounted future cash flows to the valuation date. As of December 31, 2024, the fair value of the 7.875% 2028 Notes (the “7.875% 2028 Notes”) approximates the principal amounts outstanding. As of December 31, 2023, the fair value of the 7.875% notes due 2028 were estimated using a of discounted future cash flows to the valuation date and the carrying value presented net of unamortized debt issuance costs and original issuance discount, net of accretion.


		As of December 31, 2024				As of December 31, 2023
	Fair
	Value Level	Principal Amount Outstanding		Fair Value		Principal Amount Outstanding		Fair Value
JPM Credit Facility	3	$	161,493	$	160,745	$	196,512	$	194,926
5.375% 2025 Notes	3		40,000		39,594		40,000		38,369
5.375% 2026 Notes	3		10,000		9,765		10,000		9,365
4.000% 2026 Notes	3		75,000		71,342		75,000		67,511
5.625% 2027 Notes	3		10,000		9,719		10,000		9,261
4.250% 2028 Notes	3		25,000		22,911		25,000		21,379
7.875% 2028 Notes	3		34,500		34,500		34,500		34,365
		$	355,993	$	348,576	$	391,012	$	375,176

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

NOTE 6 – BORROWINGS

Historically, the 1940 Act has permitted the Company to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that its asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the Small Business Credit Availability Act (the “SBCAA”) was enacted into law. The SBCAA, amended the 1940 Act to reduce the asset coverage requirements applicable to business development companies from 200% to 150% so long as the business development company meets certain disclosure requirements and obtains certain approvals. At the Company’s annual meeting of stockholders held on August 1, 2018, the Company’s stockholders approved the reduced asset coverage ratio from 200% to 150%, such that the Company’s maximum debt-to-equity ratio increased from a prior maximum of 1.0x (equivalent of $1 of debt outstanding for each $1 of equity) to a maximum of 2.0x (equivalent to $2 of debt outstanding for each $1 of equity). As a result, the Company’s asset coverage requirements applicable to senior securities decreased from 200% to 150%, effective August 2, 2018. As of December 31, 2024 and December 31, 2023, the Company’s asset coverage for borrowed amounts was 180.4% and 181.0%, respectively.

Total borrowings outstanding and available as of December 31, 2024, were as follows:


	Maturity	Rate		Principal Amount Outstanding		Amortized Cost		Available
JPM Credit Facility⁽¹⁾	11/22/2025	S+2.500	%	$	161,493	$	160,745	$	173,507
5.375% 2025 Notes	10/20/2025	5.375	%		40,000		39,892		—
5.375% 2026 Notes	12/4/2026	5.375	%		10,000		9,943		—
4.000% 2026 Notes	12/15/2026	4.000	%		75,000		74,332		—
5.625% 2027 Notes	12/4/2027	5.625	%		10,000		9,926		—
4.250% 2028 Notes	12/6/2028	4.250	%		25,000		24,796		—
7.875% 2028 Notes	9/15/2028	7.875	%		34,500		33,483		—
Total debt				$	355,993	$	353,117	$	173,507

(1)	All foreign denominated principal borrowings have been converted to USD using the exchange rates as of the applicable reporting date.

Total borrowings outstanding and available as of December 31, 2023, were as follows:


	Maturity	Rate		Principal Amount Outstanding		Amortized Cost		Available
JPM Credit Facility⁽¹⁾	11/22/2025	S+2.500	%	$	196,512	$	194,926	$	138,488
5.375% 2025 Notes	10/20/2025	5.375	%		40,000		39,761		—
5.375% 2026 Notes	12/4/2026	5.375	%		10,000		9,914		—
4.000% 2026 Notes	12/15/2026	4.000	%		75,000		73,992		—
5.625% 2027 Notes	12/4/2027	5.625	%		10,000		9,901		—
4.250% 2028 Notes	12/6/2028	4.250	%		25,000		24,745		—
7.875% 2028 Notes	9/15/2028	7.875	%		34,500		33,209		—
Total debt				$	391,012	$	386,448	$	138,488

(1)	All foreign denominated principal borrowings have been converted to USD using the exchange rates as of the applicable reporting date.

Credit Facility: On December 23, 2015, WhiteHorse Credit entered into a revolving credit and security agreement with JPMorgan, as administrative agent and lender.

On January 4, 2022, the terms of the Credit Facility were amended to, among other things, continue to establish a temporary upsize to the borrowing capacity under the Credit Facility, which allowed WhiteHorse Credit to borrow up to $335,000 for a four-month period that originally began on October 4, 2021.

On February 4, 2022, the terms of the Credit Facility were further amended to, among other things (i) increase WhiteHorse Credit’s availability under the Credit Facility from $285,000 to $310,000 (the “$25,000 Increase”), (ii) increase the minimum funding

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

amount from $200,000 to $217,000, (iii) extend an additional temporary increase of $25,000 in availability under the Credit Facility, allowing WhiteHorse Credit to borrow up to $335,000 through April 4, 2022 (the “$25,000 Temporary Increase”), and (iv) apply an annual interest rate equal to applicable SOFR plus 2.50% to any borrowings under the $25,000 Increase in the Credit Facility and the $25,000 Temporary Increase in availability under the Credit Facility.

On March 30, 2022, the terms of the Credit Facility were further amended to, among other things: (i) increase WhiteHorse Credit’s availability under the Credit Facility from $310,000 to $335,000; (ii) retain an accordion feature which allows for the expansion of the borrowing limit up to $375,000; and (iii) increase the minimum funding amount from $217,000 to $234,500.

On April 12, 2023, the terms of the Credit Facility were further amended to, among other things, (i) apply an annual interest rate equal to the applicable base rate plus 2.50% to any USD denominated borrowings, and (ii) convert to SOFR for USD denominated borrowings effective June 6, 2023.

On November 21, 2024, the terms of the Credit Facility were amended to extend the reinvestment period by one month to from November 22, 2024 to December 22, 2024.

On December 19, 2024, the terms of the Credit Facility were amended to extend the reinvestment period by one month to from December 22, 2024 to January 22, 2025.

The Credit Facility bears interest at SOFR plus 2.50% on all outstanding USD denominated borrowings. The Credit Facility bears interest at EurIBOR for EUR denominated borrowings, CDOR for CAD denominated borrowings, SONIA for GBP denominated borrowings, plus, in each case, a spread of 2.35% on outstanding borrowings. The Company is required to pay a non-usage fee which accrues at 0.75% per annum on the average daily unused amount of the financing commitments to the extent the aggregate principal amount available under the Credit Facility has not been borrowed. The minimum borrowing requirement is $234,500. In connection with the Credit Facility, WhiteHorse Credit pledged securities with a fair value of approximately $512,210 as of December 31, 2024 as collateral. The Credit Facility has a maturity date of November 22, 2025.

Under the Credit Facility, the Company has made certain customary representations and warranties and is required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities.

As of December 31, 2024, the Company had $161,493 in outstanding borrowings and $173,507 undrawn under the Credit Facility. For the year ended December 31, 2024, weighted average outstanding borrowings were $183,014 at a weighted average interest rate of 7.67%. As of December 31, 2024, the interest rate in effect on outstanding borrowings was 6.88%. The Company’s ability to draw down undrawn funds under the Credit Facility is determined by collateral and portfolio quality requirements stipulated in the credit and security agreement. As of December 31, 2024, $173,507 was available to be drawn by the Company based on these requirements.

As of December 31, 2023, the Company had $196,512 in outstanding borrowings and $138,488 undrawn under the Credit Facility. For the year ended December 31, 2023, weighted average outstanding borrowings were $236,969 at a weighted average interest rate of 7.58%. As of December 31, 2023, the interest rate in effect on outstanding borrowings was 7.87%. The Company’s ability to draw down undrawn funds under the Credit Facility is determined by collateral and portfolio quality requirements stipulated in the credit and security agreement. As of December 31, 2023, $138,488 was available to be drawn by the Company based on these requirements.

5.375% 2025 Notes: On October 20, 2020, the Company entered into a Note Purchase Agreement (the “2025 Note Purchase Agreement”) governing the issuance of $40,000 in aggregate principal amount of unsecured notes (the “5.375% 2025 Notes”) to qualified institutional investors in a private placement. The 5.375% 2025 Notes have a fixed interest rate of 5.375% and are due on October 20, 2025, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms. Interest on the 5.375% 2025 Notes is payable semiannually on April 20 and October 20, at a fixed, annual rate of 5.375%. This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 5.375% 2025 Notes cease to have an investment grade rating. In addition, the Company is obligated to offer to repay the 5.375% 2025 Notes at par if certain change in control events occur. The 5.375% 2025 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

5.375% 2026 Notes: On December 4, 2020, the Company entered into a Note Purchase Agreement (the “2026 Note Purchase Agreement”) governing the issuance of $10,000 in aggregate principal amount of unsecured notes (the “5.375% 2026 Notes”) to qualified institutional investors in a private placement. The 5.375% 2026 Notes have a fixed interest rate of 5.375% and are due on December 4, 2026, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms. Interest on the 5.375% 2026 Notes is payable semiannually on June 4 and December 4, at a fixed, annual rate of 5.375%. This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 5.375% 2026 Notes cease to have an investment grade rating. In addition, the Company is obligated to offer to repay the 5.375% 2026 Notes at par if certain change in control events occur. The 5.375% 2026 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

4.000% 2026 Notes: On November 24, 2021, the Company completed a public offering of $75,000 of aggregate principal amount of unsecured notes, the net proceeds of which were used to fund investments in debt and equity securities and repay outstanding indebtedness under the Credit Facility. Interest on the 4.000% 2026 Notes is payable semiannually on June 15 and December 15, at a fixed, annual rate of 4.000%. The 4.000% 2026 Notes will mature on December 15, 2026 and may be redeemed in whole or in part at any time prior to September 15, 2026, at par plus a “make-whole” premium, and thereafter at par. The 4.000% 2026 Notes are direct unsecured obligations and are structurally subordinate to borrowings under the Credit Facility and will rank pari passu with all outstanding and future unsecured unsubordinated indebtedness.

5.625% 2027 Notes: On December 4, 2020, the Company entered into a Note Purchase Agreement (the “2027 Note Purchase Agreement”) governing the issuance of $10,000 in aggregate principal amount of unsecured notes (the “5.625% 2027 Notes”) to qualified institutional investors in a private placement. The 5.625% 2027 Notes have a fixed interest rate of 5.625% and are due on December 4, 2027, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms. Interest on the 5.625% 2027 Notes is payable semiannually on June 4 and December 4, at a fixed, annual rate of 5.625%. This interest rate is subject to increase (up to 6.625%) in the event that, subject to certain exceptions, the 5.625% 2027 Notes cease to have an investment grade rating. In addition, the Company is obligated to offer to repay the 5.625% 2027 Notes at par if certain change in control events occur. The 5.625% 2027 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

4.250% 2028 Notes: On December 6, 2021, the Company entered into a Note Purchase Agreement (the “2028 Note Purchase Agreement,”) governing the issuance of $25,000 in aggregate principal amount of unsecured notes (the “4.25% 2028 Notes”) to qualified institutional investors in a private placement. Interest on the 4.250% 2028 Notes is payable semiannually on June 6 and December 6, at a fixed, annual rate of 4.25%. This interest rate is subject to increase (up to 5.25%) in the event that, subject to certain exceptions, the 4.250% 2028 Notes cease to have an investment grade rating. The 4.250% 2028 Notes mature on December 6, 2028, unless redeemed, purchased or prepaid prior to such date by us or our affiliates in accordance with their terms. The 4.250% 2028 Notes are general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness that we may issue. The closing of the transaction occurred on December 6, 2021.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

7.875% 2028 Notes: On August 24, 2023, the Company completed a public offering of 7.875% 2028 Notes in aggregate principal amount of $30,000, the net proceeds of which were used to fund investments in debt and equity securities and repay outstanding indebtedness under its revolving credit facility. Additionally, the offering included an overallotment feature for up to an additional $4,500 of aggregate principal amount under the same terms as the initial offering. On August 31, 2023, the underwriters fully exercised their option to purchase an additional $4,500, bringing the aggregate principal amount of the 7.875% 2028 Notes to $34,500. Interest on the 7.875% 2028 Notes is paid quarterly on March 15, June 15, September 15 and December 15 each year, at an annual rate of 7.875%. The 7.875% 2028 Notes will mature on September 15, 2028 and may be redeemed in whole or in part at any time, or from time to time, at the Company’s option on or after September 15, 2025. The 7.875% 2028 Notes are direct unsecured obligations and are structurally subordinate to borrowings under the Credit Facility and will rank pari passu with all outstanding and future unsecured unsubordinated indebtedness we may issue. The 7.875% 2028 Notes are listed on the Nasdaq Global Select Market under the trading symbol “WHFCL.”

6.000% 2023 Notes: On July 13, 2018, the Company entered into an agreement (the “2023 Note Purchase Agreement”) to sell in a private offering $30,000 aggregate principal amount of senior unsecured notes to qualified institutional investors in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended. Interest on the 6.000% 2023 Notes was payable semiannually on February 7 and August 7, at a fixed, annual rate of 6.00%. This interest rate was subject to increase (up to 6.50%) in the event that, subject to certain exceptions, the 6.000% 2023 Notes cease to have an investment grade rating. The 6.000% 2023 Notes were general unsecured obligations of the Company that ranked pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The closing of the transaction occurred on August 7, 2018. On August 7, 2023, the 6.000% 2023 Notes matured and were fully repaid by the Company.

NOTE 7 - RELATED PARTY TRANSACTIONS

Investment Advisory Agreement: WhiteHorse Advisers serves as the Company’s investment adviser in accordance with the terms of an investment advisory agreement. On November 1, 2023, at an in-person meeting, the Company’s board of directors approved an amended and restated investment advisory agreement, which was executed by the Company on February 22, 2024 (the “Investment Advisory Agreement”). The Company’s board of directors most recently re-approved the Investment Advisory Agreement on October 30, 2024. Subject to the overall supervision of the Company’s board of directors, WhiteHorse Advisers manages the day-to-day operations of, and provides investment management services to, the Company. Under the terms of the Investment Advisory Agreement, WhiteHorse Advisers:

●

determines the composition of the investment portfolio, the nature and timing of the changes to the portfolio and the manner of implementing such changes;

●

identifies, evaluates and negotiates the structure of the investments the Company makes (including performing due diligence on the Company’s prospective portfolio companies); and

●

closes, monitors and administers the investments the Company makes, including the exercise of any voting or consent rights.

In addition, WhiteHorse Advisers provides the Company with access to personnel and an Investment Committee. Under the Investment Advisory Agreement, the Company pays WhiteHorse Advisers a fee for investment management services consisting of a base management fee and an incentive fee. The Investment Advisory Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party.

Base Management Fee

Effective January 1, 2024, the base management fee is calculated at an annual rate equal to 1.75% based on the Company’s consolidated gross assets (including cash and cash equivalents and assets purchased with borrowed funds); provided, however, the base management fee will be calculated at an annual rate equal to 1.25% of the Company’s consolidated gross assets (including cash and cash equivalents and assets purchased with borrowed funds), that exceed the product of (i) 200% and (ii) the value of the Company’s total net assets, at the end of the two most recently completed calendar quarters. Base management fees are payable quarterly in arrears and are appropriately pro-rated for any partial month or quarter.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

Prior to January 1, 2024, the base management fee is calculated at an annual rate of 2.00% based on the Company’s consolidated gross assets (including cash and cash equivalents and assets purchased with borrowed funds); provided, however, the base management fee will be calculated at an annual rate equal to 1.25% of the Company’s consolidated gross assets (including cash and cash equivalents and assets purchased with borrowed funds) that exceed the product of (i) 200% and (ii) the value of the Company’s total net assets, at the end of the two most recently completed calendar quarters. Base management fees are payable quarterly in arrears and are appropriately pro-rated for any partial month or quarter.

The following table details our management fee expenses for the years ended December 31, 2024, 2023 and 2022:


		Year ended December 31,
Management Fees ($ in thousands)		2024		2023		2022
Base management fees	$	12,127	$	14,684	$	15,600
Total management fees	$	12,127	$	14,684	$	15,600

As of December 31, 2024 and December 31, 2023, management fees payable on the consolidated statements of assets and liabilities were $2,932 and $3,595, respectively.

Performance-based Incentive Fee

The performance-based incentive fee consists of two components that are independent of each other, except as provided by the Incentive Fee Cap and Deferral Mechanism discussed below.

The calculations of these two components have been structured to include a fee limitation such that no incentive fee will be paid to the investment adviser for any quarter if, after such payment, the cumulative incentive fees paid to the investment adviser for the period that includes the current fiscal quarter and the 11 full preceding fiscal quarters, referred to as the “Incentive Fee Look-back Period,” would exceed 20.0% of the Cumulative Pre-Incentive Fee Net Return (as defined below) during the Incentive Fee Look-back Period.

Each quarterly incentive fee is subject to the Incentive Fee Cap (as defined below) and a deferral mechanism through which the investment adviser may recap a portion of such deferred incentive fees, which is referred to together as the “Incentive Fee Cap and Deferral Mechanism.”

This limitation is accomplished by subjecting each incentive fee payable to a cap, which is referred to as the “Incentive Fee Cap.” The Incentive Fee Cap in any quarter is equal to (a) 20.0% of Cumulative Pre-Incentive Fee Net Return during the Incentive Fee Look-back Period less (b) cumulative incentive fees of any kind paid to the investment adviser during the Incentive Fee Look-back Period. To the extent the Incentive Fee Cap is zero or a negative value in any quarter, the Company will pay no incentive fee to its investment adviser in that quarter. The Company will only pay incentive fees to the extent allowed by the Incentive Fee Cap and Deferral Mechanism. To the extent that the payment of incentive fees is limited by the Incentive Fee Cap and Deferral Mechanism, the payment of such fees may be deferred and paid in subsequent quarters up to three years after their date of deferment, subject to applicable limitations included in the Investment Advisory Agreement. The deferral component of the Incentive Fee Cap and Deferral Mechanism may cause incentive fees that accrued during one fiscal quarter to be paid to the investment adviser at any time during the 11 full fiscal quarters following such initial full fiscal quarter.

The “Cumulative Pre-Incentive Fee Net Return” refers to the sum of (a) Pre-Incentive Fee Net Investment Income (as defined below) for each period during the Incentive Fee Look-back Period and (b) the sum of cumulative realized capital gains, cumulative realized capital losses, cumulative unrealized capital depreciation and cumulative unrealized capital appreciation during the applicable Incentive Fee Look-back Period.

The first component, which is income-based (the “Income Incentive Fee”), is calculated and payable quarterly in arrears and is determined based on Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter, subject to the Incentive Fee Cap and Deferral Mechanism. For this purpose, “Pre-Incentive Fee Net Investment Income” means, in each case on a consolidated basis, interest income, distribution income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees received from

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the administration agreement (the “Administration Agreement”), any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

The operation of the first component of the incentive fee for each quarter is as follows:

●

no incentive fee is payable to the Company’s investment adviser in any calendar quarter in which Pre-Incentive Fee Net Investment Income does not exceed the “Hurdle Rate” of 1.75% (7.00% annualized);

●

100% of Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle Rate but is less than 2.1875% in any calendar quarter (8.75% annualized) is payable to the Company’s investment adviser. This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the Hurdle Rate but is less than 2.1875%) is referred to as the “catch-up.” The effect of the catch-up is that, if such Pre-Incentive Fee Net Investment Income exceeds 2.1875% in any calendar quarter, the investment adviser will receive 20% of such Pre-Incentive Fee Net Investment Income as if the Hurdle Rate did not apply; and

●

20% of the amount of such Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to the Company’s investment adviser (once the Hurdle Rate is reached and the catch-up is achieved, 20% of all Pre-Incentive Fee Net Investment Income).

The portion of such incentive fee that is attributable to deferred interest (such as PIK interest or original issue discount) will be paid to the investment adviser, together with interest from the date of deferral to the date of payment, only if and to the extent that the Company actually receives such interest in cash, and any accrual will be reversed if and to the extent such interest is reversed in connection with any write-off or similar treatment of the investment giving rise to any deferred interest accrual. Any reversal of such amounts would reduce net income for the quarter by the net amount of the reversal (after taking into account the reversal of incentive fees payable) and would result in a reduction and possibly elimination of the incentive fees for such quarter.

There is no accumulation of amounts on the Hurdle Rate from quarter to quarter and, accordingly, there is no clawback of amounts previously paid if subsequent quarters are below the quarterly Hurdle Rate and there is no delay of payment if prior quarters are below the quarterly Hurdle Rate. Since the Hurdle Rate is fixed, as interest rates rise, it will be easier for the investment adviser to surpass the Hurdle Rate and receive an incentive fee based on Pre-Incentive Fee Net Investment Income.

Net investment income used to calculate this component of the incentive fee is also included in the amount of consolidated gross assets used to calculate the base management fee. These calculations will be appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.

The second component, the capital gains component of the incentive fee (the “Capital Gains Incentive Fee”), which is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), commenced on January 1, 2013, and equals 20% of cumulative aggregate realized capital gains from January 1 through the end of each calendar year, computed net of aggregate cumulative realized capital losses and aggregate cumulative unrealized capital depreciation through the end of each year (the “Capital Gains Incentive Fee Base”), less the aggregate amount of any previously paid capital gains incentive fees and subject to the Incentive Fee Cap and Deferral Mechanism. If such amount is negative, then no capital gains incentive fee will be payable for the year. Additionally, if the Investment Advisory Agreement is terminated as of a date that is not a calendar year end, the termination date will be treated as though it were a calendar year end for purposes of calculating and paying the capital gains incentive fee. The capital gains component of the incentive fee is not subject to any minimum return to stockholders.

In accordance with GAAP, the Company is also required to include the aggregate unrealized capital appreciation on investments in the calculation and accrue a capital gains incentive fee on a quarterly basis if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement. If the Capital Gains Incentive Fee Base, adjusted as required by GAAP to include unrealized capital appreciation, is positive at the end of a reporting period, then GAAP requires the Company to accrue a Capital Gains Incentive Fee equal to 20% of such amount, less the aggregate amount of any Capital Gains Incentive Fees previously paid and Capital Gains Incentive Fees accrued under GAAP in all prior periods. If such amount is negative, then there is no accrual for such period. The

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

resulting accrual under GAAP in a given period may result in either additional expense (if such cumulative amount is greater than in the prior period) or a reversal of previously recorded expense (if such cumulative amount is less than in the prior period). There can be no assurance that such unrealized capital appreciation will be realized in the future.

Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where it incurs a loss subject to the Incentive Fee Cap and Deferral Mechanism. For example, if the Company receives Pre-Incentive Fee Net Investment Income in excess of the Hurdle Rate, it will pay the applicable Income Incentive Fee even after incurring a loss in that quarter due to realized and unrealized capital losses.

The following table provides a breakdown of the performance-based incentive fees for the years ended December 31, 2024, 2023 and 2022:


		Year ended December 31,
Performance-based Incentive Fees ($ in thousands)		2024		2023		2022
Income incentive fee	$	9,309	$	10,678	$	8,862
Capital gains incentive fee		—		—		(1,803)
Total performance-based incentive fees	$	9,309	$	10,678	$	7,059

As of December 31, 2024 and December 31, 2023, incentive fees payable on the consolidated statements of assets and liabilities were $17,848 and $10,470, respectively. As of both December 31, 2024 and December 31, 2023, there were no incentive fees payable on the consolidated statements of assets and liabilities for cumulative accruals of Capital Gains Incentive Fees under GAAP, including any amounts payable pursuant to the Investment Advisory Agreement as described above.

Administration Agreement: Pursuant to the Administration Agreement, WhiteHorse Administration furnishes the Company with office facilities, equipment and clerical, bookkeeping and record keeping services to enable the Company to operate. Under the Administration Agreement, WhiteHorse Administration performs, or oversees the performance of, the Company’s required administrative services, which include being responsible for the financial records which the Company is required to maintain and preparing reports to its stockholders and reports filed with the U.S. Securities and Exchange Commission. In addition, WhiteHorse Administration assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports to its stockholders and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Payments under the Administration Agreement equal an amount based upon the Company’s allocable portion of WhiteHorse Administration’s overhead in performing its obligations under the Administration Agreement, including rent and the Company’s allocable portion of the cost of its chief financial officer and chief compliance officer along with their respective staffs. Under the Administration Agreement, WhiteHorse Administration also provides on the Company’s behalf managerial assistance to those portfolio companies to which the Company is required to provide such assistance. The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party. To the extent that WhiteHorse Administration outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without any profit to WhiteHorse Administration.

Substantially all the Company’s payments of operating expenses to third parties were made by a related party, for which such third party received reimbursement from the Company.

During each of the years ended December 31, 2024, 2023 and 2022, the Company incurred allocated administrative service fees of $683.

Co-investments with Related Parties: As of December 31, 2024 and December 31, 2023, no officers or employees affiliated with or employed by WhiteHorse Advisers and its related entities maintained any co-investments in the Company’s investments.

As of December 31, 2024 and December 31, 2023, certain funds affiliated with WhiteHorse Advisers and its related entities maintained co-investments in the Company’s investments of $5,890,052 and $4,977,275, respectively.

STRS JV: For the year ended December 31, 2024 and December 31, 2023, the Company sold $59,190 and $74,939 of investments to STRS JV and recognized a net realized loss of $15 and a net realized loss of $101, respectively.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

NOTE 8 - COMMITMENTS AND CONTINGENCIES

Commitments: In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk to meet the financing needs of its borrowers. These financial instruments include commitments to extend credit and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statement of assets and liabilities. The Company attempts to limit its credit risk by conducting extensive due diligence and obtaining collateral where appropriate.

As of December 31, 2024 and December 31, 2023, the balance of unfunded commitments to extend credit was $26,385 and $21,440, respectively. Commitments to extend credit consist principally of the unused portions of commitments that obligate the Company to extend credit, such as revolving credit arrangements or similar transactions. These commitments are often subject to financial or non-financial milestones and other conditions to borrow that must be achieved before the commitment can be drawn. In addition, the commitments generally have fixed expiration dates or other termination clauses. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

The following table summarizes the Company’s unfunded commitments as of December 31, 2024 and December 31, 2023:


Unfunded Commitments ($ in thousands)	As of December 31, 2024		As of December 31, 2023
Revolving Loan Commitments:
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)	$	—	$	447
Branford Filtration, LLC (d/b/a Clean Solutions Group)		—		387
Bridgepoint Healthcare, LLC		1,350		1,588
BUSA Acquisition Co. (d/b/a BankCard USA Merchant Services Inc.)		459		—
Claridge Products and Equipment, LLC		70		351
Coastal Television Broadcasting Group LLC		309		309
EducationDynamics, LLC		1,199		1,199
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)		194		647
HC Salon Holdings, Inc. (d/b/a Hair Cuttery)		—		700
Leviathan Intermediate Holdco, LLC		570		570
LogicMonitor, Inc.		778		—
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)		246		572
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)		—		709
MSI Information Services, Inc.		—		225
M&M OpCo, LLC (d/b/a Escalent, Inc.)		238		238
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)		—		30
PANOS Brands, LLC		384		—
Ribbon Communications Operating Company, Inc. (d/b/a Ribbon Communications Inc.)		880		—
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)		861		610
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)		2,646		2,646
Surge Amuze Holdings Inc. (d/b/a Amuze Products II, Inc.)		146		—
Telestream Holdings Corporation		241		87
The Kyjen Company, LLC (d/b/a Outward Hound)		—		798
TOT Group, Inc. (d/b/a Netevia Group LLC)		553		—
Trailhead Media LLC		870		—
W&A Intermediate Co., LLC (d/b/a Wakefield & Associates, LLC)		515		—
W Electric Intermediate Holdings, LLC (d/b/a Westinghouse Electric Corporation)		1,195		—
Zephyr Buyer, L.P. (d/b/a The Weather Company, LLC)		1,806		—
Total unfunded revolving loan commitments		15,510		12,113

Delayed Draw Loan Commitments:
Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC)		1,422		—
Avision Holdings, LLC (d/b/a Avision Sales Group)		1,756		—
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)		—		140
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)		—		895
Kelso Industries LLC		1,389		—
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)		—		648
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)		861		1,407
StoicLane MidCo, LLC (d/b/a StoicLane Inc.)		—		6,237
Surge Amuze Holdings Inc. (d/b/a Amuze Products II, Inc.)		878		—
TOT Group, Inc. (d/b/a Netevia Group LLC)		1,107		—
Trailhead Media LLC		2,174		—
W&A Intermediate Co., LLC (d/b/a Wakefield & Associates, LLC)		1,288		—
Total unfunded delayed draw loan commitments		10,875		9,327
Total Unfunded Commitments	$	26,385	$	21,440

(1)Unfunded commitments denominated in non-USD currencies have been converted to USD using the exchange rate as of the applicable reporting date.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

As of both December 31, 2024 and December 31, 2023, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $23,000 and $92,000, respectively, of which $1,896 and $7,584 were unfunded, respectively. The capital commitments cannot be drawn without an affirmative vote by both the Company’s and STRS Ohio’s representatives on STRS JV’s board of managers.

Indemnification: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not occurred. The Company expects the risk of any future obligation under these indemnifications to be remote.

Legal Proceedings: In the normal course of business, the Company, WhiteHorse Advisers and WhiteHorse Administrator may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company does not believe any such disposition will have a material adverse effect on the Company’s consolidated financial statements.

NOTE 9 - STOCKHOLDERS’ EQUITY

On March 31, 2023, the Company launched an “at-the-market” offering (the “ATM Program”) by entering into an Equity Distribution Agreement with B. Riley Securities, Inc. pursuant to which the Company may offer and sell, from time to time, through B. Riley Securities, Inc., as the sales agent, shares of its common stock having an aggregate offering amount of up to $35,000.

No shares were issued pursuant to the ATM program during the years ended December 31, 2024 or 2023, respectively.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

NOTE 10 - FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights:


	Year Ended December 31,
	2024			2023			2022			2021			2020
Per share data:⁽¹⁾
Net asset value, beginning of period	$	13.63		$	14.30		$	15.10		$	15.23		$	15.23
Net investment income		1.60			1.84			1.60			1.36			1.18
Net realized and unrealized gains (losses) on investments and foreign currency transactions		(1.13)			(0.96)			(0.93)			0.07			0.37
Net increase in net assets resulting from operations		0.47			0.88			0.67			1.43			1.55
Distributions declared from net investment income		(1.79)			(1.55)			(1.47)			(1.56)			(1.55)
Net asset value, end of period	$	12.31		$	13.63		$	14.30		$	15.10		$	15.23
Total annualized return based on market value⁽²⁾		(21.30)	%		(5.75)	%		(15.81)	%		13.89	%		(0.66)	%
Total annualized return based on net asset value		3.49	%		6.20	%		4.55	%		9.21	%		10.36	%
Net assets, end of period	$	286,134		$	316,772		$	332,387		$	349,751		$	312,897
Per share market value at end of period	$	9.68		$	12.30		$	13.05		$	15.50		$	13.61
Shares outstanding end of period		23,243,088			23,243,088			23,243,088			23,162,667			20,546,032
Ratios/Supplemental Data:⁽³⁾
Ratio of expenses before incentive fees to average net assets⁽⁴⁾		14.89	%		15.16	%		12.54	%		10.96	%		9.78	%
Ratio of incentive fees to average net assets		2.99	%		3.25	%		2.04	%		2.30	%		2.49	%
Ratio of total expenses to average net assets⁽⁴⁾		17.88	%		18.41	%		14.58	%		13.26	%		12.27	%
Ratio of net investment income to average net assets⁽⁴⁾		11.98	%		12.98	%		10.81	%		8.81	%		7.90	%
Portfolio turnover ratio		30.93	%		19.91	%		35.81	%		60.79	%		35.86	%

(1)	Based on actual number of shares outstanding at the end of the period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.

(2)	Total return is based on the change in market price per share during the period and takes into account distributions, if any, reinvested in accordance with the DRIP.

(3)	With the exception of the portfolio turnover rate, ratios are reported on an annualized basis.

(4)	Calculated using total expenses, including income tax provision.

Financial highlights are calculated for each securities class taken as a whole. An individual stockholder’s return and ratios may vary based on the timing of capital transactions.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

NOTE 11 - CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE

The following information sets forth the computation of the basic and diluted per share net increase or decrease in net assets resulting from operations:


	Year Ended December 31,
($ in thousands except share and per share amounts)	2024		2023		2022
Net increase (decrease) in net assets resulting from operations	$	10,851	$	20,412	$	15,683
Weighted average shares outstanding		23,243,088		23,243,088		23,229,552
Basic and diluted per share net increase (decrease) in net assets resulting from operations	$	0.47	$	0.88	$	0.68

NOTE 12 – INCOME TAXES

The Company has elected to be treated as a RIC under Subchapter M of the Code, and as a result must distribute substantially all of its taxable income. Accordingly, no provision for federal income tax has been made in the consolidated financial statements.

The Company distributed 100% of its taxable income in each of its fiscal and taxable years.

Distributions from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-tax differences have no impact on net assets. Such reclassifications have been reflected in the consolidated statements of changes in net assets.

The reconciliation of net increase in net assets resulting from operations to taxable income is as follows:


	Year ended December 31,
($ in thousands)	2024		2023		2022
Net increase (decrease) in net assets resulting from operations	$	10,851	$	20,412	$	15,683
Change in net unrealized (appreciation) depreciation on investments and foreign currency		8,406		23,247		7,307
Other book-to-tax differences		18,089		205		9,498
Taxable income before deductions for distributions	$	37,346	$	43,864	$	32,488

The tax character of distributions was as follows:


	Year ended December 31,
($ in thousands)	2024				2023				2022
Ordinary income	$	41,489	100.0	%	$	36,027	100.0	%	$	34,150	100.0	%
Return of capital		—	—			—	—			—	—
Long-term capital gains		—	—			—	—			—	—
Total distributions	$	41,489	100.0	%	$	36,027	100.0	%	$	34,150	100.0	%

The Company may make certain adjustments to the classification of stockholders’ equity as a result of permanent book-to-tax differences. During the current fiscal year, permanent differences primarily due to nondeductible federal taxes resulted in a net increase in accumulated undistributed net investment income and a net decrease in paid-in capital.

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WHITEHORSE FINANCE, INC.

Notes To Consolidated Financial Statements

December 31, 2024

(in thousands, except share and per share data)

As of December 31, 2024, 2023 and 2022, the tax basis components of distributable earnings were as follows:


	Year ended December 31,
($ in thousands)	2024		2023		2022
Ordinary income	$	28,366	$	31,874	$	24,217
Accumulated capital and other losses		(27,935)		—		—
Net unrealized (depreciation) appreciation on investments and foreign currency		(54,509)		(54,020)		(22,287)
Distributions deferred		—		—		—
Total (accumulated deficit) distributable earnings – tax basis	$	(54,078)	$	(22,146)	$	1,930

There were no late year ordinary losses for the fiscal years ended December 31, 2024, December 31, 2023 and December 31, 2022.

For tax purposes, net capital losses may be carried over to offset future capital gains, if any. The Company is permitted to carry forward capital losses incurred for an unlimited period, and such losses will retain their character as either short-term or long-term capital losses. As of December 31, 2024 and 2023, the Company had $22,269 and $8,123, respectively of long-term capital loss carryforwards. As of December 31, 2024 and 2023, the Company had $5,666 and zero, respectively of short-term capital loss carryforwards.

As of December 31, 2024, the cost of investments for U.S. federal income tax purposes was $711,668, resulting in net unrealized depreciation of $56,206. This is comprised of gross unrealized appreciation of $13,700 and gross unrealized depreciation of $69,906 on a tax basis. As of December 31, 2023, the cost of investments for U.S. federal income tax purposes was $751,117, resulting in net unrealized depreciation of $54,949. This is comprised of gross unrealized appreciation of $6,881 and gross unrealized depreciation of $61,830 on a tax basis.

The Company did not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25, Income Taxes, nor did the Company have any unrecognized tax benefits as of the period presented herein. Although the Company files federal and state tax returns, its major tax jurisdiction is federal. Tax returns for each of the federal tax years since 2020 remain subject to examination by the Internal Revenue Service.

NOTE 13 – SEGMENT REPORTING

The Company operates through a single reporting segment, with an investment strategy to generate current income and, to a lesser extent, capital appreciation primarily through direct origination of senior secured debt and select equity investments. The Chief Operating Decision Maker (“CODM”), who are the Company’s chief executive officer and chief financial officer, are responsible for assessing performance and allocating resources on behalf of the Company. The CODM assesses performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s net increase (decrease) in net assets resulting from operations. In addition to various other factors and metrics, the CODM utilizes net increase (decrease) in net assets resulting from operations as a key metric in implementing investment policy decisions and in evaluating the Company’s distribution policy. As the Company operates as a single reporting segment, the segment assets are reflected on the accompanying consolidated statement of assets and liabilities as “total assets” and the significant segment expenses are listed on the accompanying consolidated statement of operations.

NOTE 14 - SUBSEQUENT EVENTS

Management has evaluated events that have occurred after the balance sheet date but before the consolidated financial statements are issued and other than the items discussed below, the Company has determined that there were no additional subsequent events requiring adjustment or disclosure in the consolidated financial statements.

On January 17, 2025, the terms of the Credit Facility were amended to, among other things, (i) reduce the applicable margins for interest rates to 2.25%, (ii) extend the non-call period to January 17, 2027, (iii) extend the reinvestment period to January 17, 2028, and (iv) extend the scheduled termination date to January 17, 2030.

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PART II

Item 9A. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

For the year ended December 31, 2024 (the end of the period covered by this report), we met the threshold to be an accelerated filer and did not correctly determine that fact. Based on this failure to correctly identify our filing status for 2024, we did not obtain or file an attestation report by Crowe LLP with respect to our internal control over financial reporting in our Original Form 10-K as required by Item 308(b) of Regulation S-K. After a review, our management, including our chief executive officer and chief financial officer, concluded that, as of December 31, 2024, our disclosure controls and procedures were not effective with respect to our filing status determination. They also determined that such oversight did not evidence any generalized deficiency in our disclosure controls and procedures or a deficiency in our internal control over financial reporting. Our management has taken steps to remediate our disclosure controls and procedures as they pertain to this incident, and we do not expect any recurrence of the issue. Management also assessed the effectiveness of our internal control over financial reporting as of December 31, 2024 as discussed in (b) and concluded WhiteHorse Finance’s internal control over financial reporting was effective.

(b) Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control system is a process designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.

WhiteHorse Finance’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions recorded necessary to permit the preparation of financial statements in accordance with GAAP. Our policies and procedures also provide reasonable assurance that receipts and expenditures are being made only in accordance with authorizations of management and the directors of WhiteHorse Finance, and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness as to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of WhiteHorse Finance’s internal control over financial reporting as of December 31, 2024. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework issued in 2013. Based on the assessment, management believes that, as of December 31, 2024, our internal control over financial reporting is effective based on those criteria.

WhiteHorse Finance’s registered public accounting firm has issued an audit report on the effectiveness of WhiteHorse Finance’s internal control over financial reporting. This report appears on page 5.

Management has not identified any change in our internal control over financial reporting that occurred during the fourth fiscal quarter of 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART IV

Item 15. Exhibits and Financial Statement Schedules

The following documents are filed as part of this annual report on Form 10-K:

(1)Financial Statements — Refer to Item 8 starting on page 4

(2)Financial Statements Schedules — None.

Number
3.1	Form of Certificate of Incorporation (Incorporated by reference to Exhibit (a)(2) to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on September 25, 2012)
3.2	Second Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q, filed on November 14, 2022)
4.1	Form of Stock Certificate (Incorporated by reference to Exhibit (d) to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on September 25, 2012)
4.2	Indenture, dated as of November 13, 2018, by and between WhiteHorse Finance, Inc. and American Stock Transfer & Trust Company, LLC, as trustee (incorporated herein by reference to Exhibit (d) (5) of Post-Effective Amendment No. 5 to Registration Statement on Form N-2 (File No. 333-217093), filed on November 13, 2018)
4.3	First Supplemental Indenture, dated as of November 13, 2018, by and between WhiteHorse Finance, Inc. and American Stock Transfer & Trust Company, LLC, as trustee (incorporated herein by reference to Exhibit (d)(6) of Post-Effective Amendment No. 5 to Registration Statement on Form N-2 (File No. 333-217093), filed on November 13, 2018)
4.4	Form of 6.50% Notes due 2025 (incorporated herein by reference to Exhibit 4.2)
4.5	Description of Securities (Incorporated by reference to Exhibit 4.5 to the Registrant’s Annual Report on Form 10-K, filed on March 16, 2020)
4.6	Second Supplemental Indenture, dated November 24, 2021, between WhiteHorse Finance, Inc. and American Stock Transfer & Trust Company, LLC, as trustee (Incorporated by reference to Exhibit 4.1 to the Registrant’s current report on Form 8-K, filed on November 24, 2021)
4.7	Form of 4.00% Notes due 2026 (Incorporated by reference to Exhibit 4.2 to the Registrant’s current report on Form 8-K, filed on November 24, 2021)
4.8	Third Supplemental Indenture, dated August 24, 2023, between WhiteHorse Finance, Inc. and Equiniti Trust Company, LLC (f/k/a American Stock Transfer & Trust Company, LLC) (Incorporated by reference to Exhibit 4.1 to the Registrant’s current report on Form 8-K, filed on August 24, 2023)
4.9	Form of 7.875% Notes due 2028 (Incorporated by reference to Exhibit 4.2 to the Registrant’s current report on Form 8-K, filed on August 24, 2023)
10.1	Form of Custody Agreement (Incorporated by reference to Exhibit (j) to the Registrant’s Pre-effective Amendment No. 2 to the Registration Statement on Form N-2, filed on November 8, 2012)
10.2	Administration Agreement between Registrant and H.I.G. WhiteHorse Administration, LLC (Incorporated by reference to Exhibit 10.3 to the Registrant’s Annual Report on Form 10-K, filed on March 5, 2013)
10.3	Form of Trademark License Agreement between the Registrant and Bayside Capital, Inc. (Incorporated by reference to Exhibit (k)(3) to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on September 25, 2012)
10.4	Dividend Reinvestment Plan (Incorporated by reference to Exhibit (e) to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on September 25, 2012)
10.5	Second Amended and Restated Investment Advisory Agreement, dated February 22, 2024, between Registrant and WhiteHorse Advisers (Incorporated by reference to Exhibit 10.5 to the Registrant’s Annual Report on Form 10-K, filed on March 5, 2024)
10.6	Limited Liability Company Agreement of WHF STRS Senior Loan Fund LLC, dated January 14, 2019, by and between WhiteHorse Finance, Inc. and State Teachers Retirement System of Ohio (Incorporated by reference to Exhibit 10.12 to the Registrant’s Annual Report on Form 10-K, filed on March 14, 2019)

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10.7	Note Purchase Agreement, dated October 20, 2020, by and among WhiteHorse Finance, Inc. and the Purchasers signatory thereto (Incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on October 21, 2020)
10.8	Note Purchase Agreement, dated December 4, 2020, by and among WhiteHorse Finance, Inc. and the Purchasers signatory thereto (Incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on December 4, 2020)
10.9	Fifth Amended and Restated Loan Agreement, dated April 28, 2021, by and among WhiteHorse Finance Credit I, LLC, as borrower, WhiteHorse Finance, Inc., as the portfolio manager, JPMorgan Chase Bank, National Association, as administrative agent and lender, and the financial providers party thereto (Incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on April 30, 2021)
10.10	First Amendment to Fifth Amended and Restated Loan Agreement, dated July 15, 2021, by and among WHF Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on July 21, 2021)
10.11	Second Amendment to Fifth Amended and Restated Loan Agreement, dated October 4, 2021, by and among WHF Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on October 8, 2021)
10.12	Note Purchase Agreement, dated December 6, 2021, by and between WhiteHorse Finance, Inc. and the Purchaser signatory thereto (Incorporated by reference to Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on December 6, 2021)
10.13	Third Amendment to Fifth Amended and Restated Loan Agreement, dated January 4, 2022, by and among WHF Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on January 10, 2022)
10.14	Fourth Amendment to Fifth Amended and Restated Loan Agreement, dated February 4, 2022, by and among WHF Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on February 10, 2022)
10.15	Fifth Amendment to Fifth Amended and Restated Loan Agreement, dated March 30, 2022, by and among WHF Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on April 5, 2022)
10.16	Equity Distribution Agreement, dated as of March 31, 2023, by and among WhiteHorse Finance, Inc., B. Riley Securities, Inc., as the sales agent, H.I.G. WhiteHorse Advisers, LLC, and H.I.G. WhiteHorse Administration, LLC (Incorporated by reference to Exhibit 1.1 to the Registrant’s Current Report on Form 8-K, filed on April 3, 2023)
10.17	Sixth Amendment to Fifth Amended and Restated Loan Agreement, dated April 12, 2023, by and among WhiteHorse Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on April 13, 2023)
10.18	Eighth Amendment to Fifth Amended and Restated Loan Agreement, dated November 21, 2024, by and among WhiteHorse Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on November 27, 2024)

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10.19	Nineth Amendment to Fifth Amended and Restated Loan Agreement, dated December 19, 2024, by and among WhiteHorse Finance Credit I, LLC, as borrower, JPMorgan Chase Bank, National Association, as lender and administrative agent, Citibank, N.A., as collateral agent and securities intermediary, WhiteHorse Finance, Inc., as portfolio manager, and Virtus Group LP, as collateral administrator (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed on December 26, 2024)
14.1	Code of Ethics of the Registrant (Incorporated by reference to Exhibit (r)(1) to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on September 25, 2012)
14.2	Code of Ethics of WhiteHorse Advisers (Incorporated by reference to Exhibit (r)(2) to the Registrant’s Pre-effective Amendment No. 1 to the Registration Statement on Form N-2, filed on September 25, 2012)
19.1	Insider Trading Policies and Procedures (Incorporated by reference to Exhibit 19.1 to the Registrant’s Annual Report on Form 10-K, filed on March 7, 2025)
21.1	List of Subsidiaries (Incorporated by reference to Exhibit 21.1 to the Registrant’s Annual Report on Form 10-K, filed on March 7, 2025)
23.1*	Consent of Crowe LLP related to Exhibit 99.1
23.2*	Consent of Crowe LLP related to Exhibit 99.2
24	Power of attorney (included on the signature page hereto)
31.1*	Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
97.1	Clawback Policy (Incorporated by reference to Exhibit 97.1 to the Registrant’s Annual Report on Form 10-K, filed on March 5, 2024)
99.1	Report of Crowe LLP on Senior Securities Table (Incorporated by reference to Exhibit 99.1 to the Registrant’s Annual Report on Form 10-K, filed on March 7, 2025)
99.2	Audited Consolidated Financial Statements of WHF STRS Ohio Senior Loan Fund LLC as of and for the year ended December 31, 2024 (Incorporated by reference to Exhibit 99.1 to the Registrant’s Annual Report on Form 10-K, filed on March 7, 2025)
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
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*	Filed herewith

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.


		WhiteHorse Finance, Inc.

Dated: June 9, 2025	By	/s/ Stuart Aronson
		Name: Stuart Aronson
		Title: Chief Executive Officer

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Stuart Aronson and Joyson C. Thomas as his true and lawful attorneys-in-fact, each with full power of substitution, for him in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact or their substitute or substitutes may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date

/s/ Stuart Aronson	Chief Executive Officer and Director	June 9, 2025
Stuart Aronson	(Principal Executive Officer)	June 9, 2025

/s/ Joyson C. Thomas	Chief Financial Officer	June 9, 2025
Joyson C. Thomas	(Principal Financial and Accounting Officer)	June 9, 2025

/s/ John Bolduc	Chairman of the Board of Directors	June 9, 2025
John Bolduc	Chairman of the Board of Directors	June 9, 2025

/s/ Jay Carvell	Director	June 9, 2025
Jay Carvell	Director	June 9, 2025

/s/ Rick P. Frier	Director	June 9, 2025
Rick P. Frier	Director	June 9, 2025

/s/ Rick D. Puckett	Director	June 9, 2025
Rick D. Puckett	Director	June 9, 2025

/s/ G. Stacy Smith	Director	June 9, 2025
G. Stacy Smith	Director	June 9, 2025

/s/ John P. Volpe	Director	June 9, 2025
John P. Volpe	Director	June 9, 2025