v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10. Income Taxes

For the years ended December 31, 2025 and 2024 and the period from May 5, 2023 (Commencement of Operations) through December 31, 2023, the Company recognized excise taxes of $222, $325 and $110, respectively, related to its status as a RIC. As of December 31, 2025, 2024 and 2023, $222, $325 and $110 of accrued excise taxes, respectively, remained payable.

For the years ended December 31, 2025 and 2024, the Company recognized no benefits (provisions) for taxes on realized and unrealized appreciation and depreciation on investments. As of December 31, 2025 and 2024, no deferred tax assets or liabilities were recorded on the Consolidated Statements of Assets and Liabilities.

The tax character of stockholder distributions attributable to the years ended December 31, 2025 and 2024 and the period from May 5, 2023 (Commencement of Operations) through December 31, 2023, was as follows (in thousands):

 

 

 

For the Year Ended December 31, 2025

 

 

For the Year Ended December 31, 2024

 

 

For the period from
May 5, 2023
(Commencement of Operations) through December 31, 2023

 

Ordinary Income

 

$

28,983

 

 

$

10,145

 

 

$

—

 

Capital Gain

 

—

 

 

—

 

 

 

—

 

Total

 

$

28,983

 

 

$

10,145

 

 

$

—

 

 

The components of distributable earnings on a tax basis detailed below differ from the amounts reflected in the Company’s Consolidated Statements of Assets and Liabilities due to temporary and permanent differences. Taxable income generally differs from net increase (decrease) in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The following table shows the components of accumulated losses on a tax basis for the years ended December 31, 2025 and 2024 (in thousands):

 

 

As of
December
31, 2025

 

 

As of
December 31, 2024

 

Undistributed net investment income

 

$

5,388

 

 

$

8,407

 

Other temporary differences

 

 

(1,407

)

 

 

(875

)

Post October loss deferrals

 

 

—

 

 

 

—

 

Capital loss carryover

 

 

(2,161

)

 

 

(97

)

Unrealized appreciation (depreciation)

 

 

8,520

 

 

 

2,130

 

Components of tax distributable earnings at year end

 

$

10,340

 

 

$

9,565

 

 

Note, taxable income is an estimate and is not fully determined until the Company’s tax return is filed.

Taxable income generally differs from net increase (decrease) in net assets resulting from operations due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized.

The Company makes certain adjustments to the classification of stockholders’ equity as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and nondeductible federal taxes or losses among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, undistributed net investment income or undistributed net realized gains on investments, as appropriate.

The Company neither has 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 periods presented herein. Although the Company files federal and state tax returns, the Company’s major tax jurisdiction is federal. The Company’s inception-to-date federal tax returns remain subject to examination by the Internal Revenue Service.

Permanent differences between Investment Company Taxable Income (“ICTI”) and net investment income for financial reporting purposes are reclassified among capital accounts in the consolidated financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes, partnership investments, investments in wholly-owned subsidiaries, and incentive fees. For the years ended December 31, 2025 and 2024 and the period from May 5, 2023 (Commencement of Operations) through December 31, 2023, the Company reclassified for book purposes amounts arising from permanent book/tax differences related to the different tax treatment of foreign currency gain(loss) and non-deductible-excise tax as follows (in thousands):

 

 

 

For the Year Ended December 31, 2025

 

 

For the Year Ended December 31, 2024

 

 

For the period from
May 5, 2023
(Commencement of Operations) through December 31, 2023

 

Accumulated net realized gain (loss)

 

$

2,572

 

 

$

87

 

 

$

—

 

Increase (Decrease) in undistributed net investment income

 

 

(2,350

)

 

 

238

 

 

 

110

 

Total

 

$

222

 

 

$

325

 

 

$

110

 

The Company’s aggregate investment unrealized appreciation and depreciation for federal income tax purposes was as follows (in thousands):

 

 

As of
December
31, 2025

 

 

As of
December 31, 2024

 

Tax Cost

 

$

905,241

 

 

$

291,955

 

Gross Unrealized Appreciation

 

$

13,386

 

 

$

3,945

 

Gross Unrealized Depreciation

 

 

(4,469

)

 

 

(1,815

)

Net Unrealized Investment Appreciation (Depreciation)

 

$

8,917

 

 

$

2,130