v3.26.1
Federal Income Tax Matters
 12 Months Ended
Sep. 30, 2025
Schedule of Investments [Abstract]  
Federal Income Tax Matters
Note 9. Federal Income Tax Matters

The Company has elected to be treated and intends to be subject to tax as a RIC under Subchapter M of the Code. As a result, the Company must distribute substantially all of its net taxable income each tax year as dividends to its stockholders, which will generally relieve the Company from U.S. federal income tax. 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 could 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.

The following permanent differences were reclassified for tax purposes among the components of net assets for the years ended September 30, 2025, 2024, and 2023:
Year ended September 30,
202520242023
Increase/(decrease) in Paid in Capital in Excess of Par$(69)$(159)$(147)
Increase/(decrease) in Distributable Earnings (Losses)69 159 147 

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 appreciation (depreciation) on investment transactions as investment gains and losses are not included in taxable income until they are realized.
The following table reconciles net increase in net assets resulting from operations to taxable income for the years ended September 30, 2025, 2024 and 2023:
Year ended September 30,
202520242023
Net increase in net assets resulting from operations$94,385 $68,960 $16,109 
Net change in unrealized (appreciation) depreciation on investment transactions(4,859)(14,328)(2,732)
Other income not currently taxable(1,951)(423)(122)
Expenses not currently deductible547 1,040 146 
Other income for tax but not book36 — — 
Expenses deductible for tax but not book(457)(2)— 
Other realized gain/loss differences2,249 1,075 4 
Taxable income before deductions for distributions$89,950 $56,322 $13,405 

The tax character of distributions paid during the years ended September 30, 2025, 2024 and 2023 were as follows:
Year ended September 30,
202520242023
Ordinary Income$87,759 $57,306 $12,256 
Long-Term Capital Gains2,337 133 — 

The tax basis components of distributable earnings/(accumulated losses) and reconciliation to accumulated earnings/(deficit) on a book basis for the years ended September 30, 2025, 2024 and 2023 were as follows:

Year ended September 30,
202520242023
Undistributed ordinary income – tax basis$— $— $1,699 
Undistributed realized gains – tax basis458 603 20 
Net unrealized appreciation (depreciation) on investments21,029 16,084 2,408 
Other temporary differences(21,112)(16,381)(3,980)
Total accumulated earnings (loss) – book basis$375 $306 $147 


Capital losses in excess of capital gains earned in a tax year could generally be carried forward and used to offset capital gains, subject to certain limitations. Capital losses incurred by the Company are not subject to expiration and retain their character as either short-term or long-term capital losses. As of September 30, 2025, the Company estimates that it will not have a capital loss carryforward available for use in subsequent tax years.

For tax purposes, the Company could elect to defer any portion of a post-October capital loss or late-year ordinary loss to the first day of the following fiscal year. As of both September 30, 2025 and 2024, the Company did not elect to defer any ordinary losses, short-term capital losses and long-term capital losses.

For the tax year ended September 30, 2025, the Company estimates taxable income in excess of the distributions made from such taxable income during the tax year, and therefore, the Company has elected to carry forward the excess for distribution to stockholders in tax year September 30, 2026. The amount carried forward to tax year September 30, 2026 is estimated to be approximately $458 of long-term capital gain, although this amount will not be finalized until the September 30, 2025 tax returns are filed in 2026.

As of September 30, 2025, the federal tax cost of investments was $2,176,898 resulting in estimated gross unrealized gains and losses of $37,220 and $4,944, respectively.