v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company has elected to be treated as a RIC under Subchapter M of the Code. As a RIC, the Company is not taxed on any investment company taxable income or capital gains which it distributes to stockholders. The Company intends to distribute all of its investment company taxable income and capital gains annually. Accordingly, no provision for federal income tax has been made in the consolidated financial statements.
Dividends 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 in accordance with U.S. GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-to-tax differences have no impact on net assets.
The following permanent differences were reclassified for tax purposes:
For the Years Ended December 31,
202520242023
Increase (decrease) in capital in excess of par value$(105)$(415)$(573)
Increase (decrease) in accumulated undistributed (overdistributed) earnings105 415 573 
Taxable income generally differs from net increase (decrease) in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses and generally excludes unrealized gain (loss) on investments as investment gains and losses are not included in taxable income until they are realized.
Capital losses in excess of capital gains earned in a tax year may generally be carried forward and used to offset capital gains, subject to certain limitations. Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred after September 30, 2011 are not subject to expiration and retain their character as either short-term or long-term capital losses. As of both December 31, 2025 and 2024, the Company had no short-term capital loss carryforwards. As of December 31, 2025 and 2024, the Company had long-term capital loss carryforwards of $84,959 and $83,155, respectively.
The following table reconciles net increase in net assets resulting from operations to taxable income:
For the Years Ended December 31,
202520242023
Net increase (decrease) in net assets resulting from operations$(5,122)$9,704 $371 
Net change in unrealized (gain) loss for book but not tax(139)16,259 (14,270)
Other realized gain (loss) for tax but not book14,883 385 (827)
Other income (loss) for tax but not book(1,015)(1,257)(2,331)
Other deductions for book in excess of deductions for tax— — — 
Expenses not currently deductible223 452 806 
Net capital loss carryforward1,784 (1,817)41,602 
Taxable Income before deductions for distributions$10,614 $23,726 $25,351 
For income tax purposes, distributions paid to stockholders are reported as ordinary income, return of capital, long term capital gains or a combination thereof. The following table provides the tax character of distributions paid:
For the Years Ended December 31,
202520242023
Ordinary income$20,150$21,666$21,666
Long-term capital gains———
Total$20,150$21,666$21,666
The Company’s consolidated Taxable Subsidiaries are subject to U.S. federal and state income taxes. For the years ended December 31, 2025, 2024 and 2023, the Company recorded a net tax expense (benefit) of approximately $141, $(4) and $321, respectively, for these Taxable Subsidiaries.
As of December 31, 2025, the estimated cost basis of investments for U.S. federal income tax purposes was $386,264, resulting in estimated net unrealized loss of $51,409, comprised of estimated gross unrealized gains and losses of $17,535 and $68,944, respectively. As of December 31, 2024, the estimated cost basis of investments for U.S. federal income tax purposes was $493,305, resulting in estimated net unrealized loss of $36,258, comprised of estimated gross unrealized gains and losses of $19,390 and $55,648, respectively.