v3.26.1
Stockholders’ Equity
 3 Months Ended
May 31, 2026
Stockholders’ Equity [Abstract]  
Stockholders’ Equity

Note 11. Stockholders’ Equity

 

Share Repurchases

 

On September 24, 2014, the Company announced the approval of an open market share repurchase plan that originally allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the “Share Repurchase Plan”). Since September 24, 2014, the Share Repurchase Plan has been extended annually, and the Company has periodically increased the amount of shares of common stock that may be purchased under the Share Repurchase Plan, most recently to 1.7 million shares of common stock. On January 6, 2026, the Company’s board of directors extended the Share Repurchase Plan for another year to January 15, 2027. As of May 31, 2026, the Company purchased 1,037,698 shares of common stock, at the average price of $22.05 for approximately $22.9 million pursuant to the Share Repurchase Plan. During the three months ended May 31, 2026, the Company did not purchase any shares of common stock pursuant to the Share Repurchase Plan.

 

Public Equity Offering

 

On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a 30-day option to purchase up to an additional 172,500 shares of its common stock, which was not exercised. 

 

Equity ATM Program

 

On March 16, 2017, the Company entered into an equity distribution agreement with Ladenburg Thalmann & Co. Inc. (“Ladenburg”), through which the Company offered for sale, from time to time, up to $30.0 million of the Company’s common stock through an ATM offering. Subsequent to this, BB&T Capital Markets and B. Riley FBR, Inc. were also added to the agreement. On July 11, 2019, the amount of the common stock to be offered was increased to $70.0 million, and on October 8, 2019, the amount of the common stock to be offered was increased to $130.0 million. This agreement was terminated as of July 29, 2021, and as of that date, the Company had sold 3,922,018 shares for gross proceeds of $97.1 million at an average price of $24.77 for aggregate net proceeds of $95.9 million (net of transaction costs).

 

On July 30, 2021, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Ladenburg and Compass Point Research and Trading, LLC (“Compass Point”), through which the Company may offer for sale, from time to time, up to $150.0 million of the Company’s common stock through the Agents (as defined below), or to them, as principal for their account (the “ATM Program”).

 

On July 6, 2023, the Company amended the Equity Distribution Agreement to increase the maximum amount of shares of our common stock to be sold through the ATM Program to $300.0 million from $150.0 million. On July 19, 2023, the Company amended the Equity Distribution Agreement to add an additional distribution agent, Raymond James & Associates, Inc. (“Raymond James”). On May 15, 2024, the Company amended the Equity Distribution Agreement to add an additional distribution agent, Lucid Capital Markets, LLC (“Lucid” and together with Ladenburg, Compass Point, and Raymond James, the “Agents”). The sales price per share of the Company’s common stock offered under the ATM Program, less the Agents’ commission, will not be less than the NAV per share of the Company’s common stock at the time of such sale. Consistent with the terms of the ATM Program, the Manager may, from time to time and in its sole discretion, contribute proceeds necessary to ensure that no sales are made at a price below the then-current NAV per share.

  

During the three months ended May 31, 2026, the Company did not sell any shares of common stock pursuant to the Equity ATM Program. As of May 31, 2026 the Company sold 8,591,915 shares for gross proceeds of $227.2 million at an average price of $26.42 for aggregate net proceeds of $225.4 million (net of transaction costs). The Manager agreed to reimburse the Company to the extent the per share price of the shares to the public, less underwriting fees, was less than net asset value per share.

The Company adopted Rule 3-04/Rule 8-03(a)(5) under Regulation S-X (Note 2). Pursuant to Regulation S-X, the Company has presented a reconciliation of the changes in each significant caption of stockholders’ equity as shown in the tables below:

 

           Capital   Total     
   Common Stock   in Excess   Distributable     
   Shares   Amount   of Par Value   Earnings (Loss)   Net Assets 
Balance at February 28, 2025  $15,183,078   $15,183   $412,913,597   $(20,263,312)  $392,665,468 
Increase (Decrease) from Operations:                         
Net investment income   -    
-
    
-
    10,142,032    10,142,032 
Net realized gain (loss) from investments   -    
-
    
-
    2,901,339    2,901,339 
Income tax (provision) benefit from realized gain on investments   -    
-
    
-
    
-
    
-
 
Realized losses on extinguishment of debt   -    -    -    -    - 
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    943,977    943,977 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   -    
-
    
-
    (55,085)   (55,085)
Decrease from Shareholder Distributions:                         
Distributions of investment income   -    
-
    
-
    (18,980,079)   (18,980,079)
Capital Share Transactions:                         
Proceeds from issuance of common stock   244,831    245    6,143,575    
-
    6,143,820 
Capital contribution from Manager   -    
-
    297,770    
-
    297,770 
Stock dividend distribution   101,482    101    2,312,052    
-
    2,312,153 
Offering costs   -    
-
    (2,080)   
-
    (2,080)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles   -    
-
         
-
    
-
 
Balance at May 31, 2025  $15,529,391   $15,529   $421,664,914   $(25,311,128)  $396,369,315 
Net investment income   -    
-
    
-
    9,080,733    9,080,733 
Net realized gain (loss) from investments   -    
-
    
-
    52,691    52,691 
Income tax (provision) benefit from realized gain on investments   -    
-
    
-
    
-
    
-
 
Realized losses on extinguishment of debt   -    
-
    
-
    
-
    
-
 
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    3,727,713    3,727,713 
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   -    
-
    
-
    423,998    423,998 
Decrease from Shareholder Distributions:                  -      
Distributions of investment income   -    
-
    
-
    (11,797,313)   (11,797,313)
Capital Share Transactions:                         
Proceeds from issuance of common stock   443,406    443    11,101,401    
-
    11,101,844 
Capital contribution from Manager   -    
-
    271,552    
-
    271,552 
Stock dividend distribution   54,515    55    1,289,733    
-
    1,289,788 
Offering costs   -    
-
    (20,753)   
-
    (20,753)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles   -    
-
         
-
    
-
 
Balance at August 31, 2025  $16,027,312   $16,027   $434,306,847   $(23,823,306)  $410,499,568 
           Capital   Total     
   Common Stock   in Excess   Distributable     
   Shares   Amount   of Par Value   Earnings (Loss)   Net Assets 
Net investment income   -    
-
    
-
    9,786,386    9,786,386 
Net realized gain (loss) from investments   -    
-
    
-
    3,070,547    3,070,547 
Income tax (provision) benefit from realized gain on investments   -    
-
    
-
    
-
    
-
 
Realized losses on extinguishment of debt   -    -    -    -    - 
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    (583,659)   (583,659)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   -    
-
    
-
    (150,134)   (150,134)
Realized losses on extinguishment of debt   -    
-
    
-
    (123,157)   (123,157)
Decrease from Shareholder Distributions:                         
Distributions of investment income   -    
-
    
-
    (12,078,766)   (12,078,766)
Capital Share Transactions:                         
Proceeds from issuance of common stock   58,962    59    1,507,206    
-
    1,507,265 
Capital contribution from Manager   -    
-
    
-
    
-
    
-
 
Stock dividend distribution   59,124    59    1,281,827    
-
    1,281,886 
Offering costs   -    
-
    (3,024)   
-
    (3,024)
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles   -    
-
    
-
    
-
      
Balance at November 30, 2025  $16,145,398   $16,145   $437,092,856   $(23,902,089)  $413,206,912 
Net investment income   -    
-
    
-
    7,797,648    7,797,648 
Net realized gain (loss) from investments   -    
-
    
-
    (278,087)   (278,087)
Income tax (provision) benefit from realized gain on investments   -    
-
    
-
    
-
    
-
 
Realized losses on extinguishment of debt   -    -    -    -    - 
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    (9,326,511)   (9,326,511)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   -    
-
    
-
    (105,281)   (105,281)
Realized losses on extinguishment of debt   -    
-
    
-
    (700,853)   (700,853)
Decrease from Shareholder Distributions:                         
Distributions of investment income   -    
-
    
-
    (16,169,750)   (16,169,750)
Capital Share Transactions:                         
Proceeds from issuance of common stock   -    
-
    
-
    
-
    
-
 
Repurchases of common stock   (2,495)   (2)   (54,312)   
-
    (54,314)
Capital contribution from Manager   -    
-
    
-
    
-
    
-
 
Stock dividend distribution   81,295    81    1,785,909    
-
    1,785,990 
Offering costs   -    
-
    
-
    
-
    
-
 
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles   -    
-
    378,024    (378,024)   
 
 
Balance at February 28, 2026  $16,224,198   $16,224   $439,202,477   $(43,062,947)  $396,155,754 
           Capital   Total     
   Common Stock   in Excess   Distributable     
   Shares   Amount   of Par Value   Earnings (Loss)   Net Assets 
Net investment income   -    
-
    
-
    7,592,987    7,592,987 
Net realized gain (loss) from investments   -    
-
    
-
    150,207    150,207 
Income tax (provision) benefit from realized gain on investments   -    
-
    
-
         
-
 
Realized losses on extinguishment of debt   -    -    -         - 
Net change in unrealized appreciation (depreciation) on investments   -    
-
    
-
    (15,177,131)   (15,177,131)
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments   -    
-
    
-
    530,824    530,824 
Realized losses on extinguishment of debt   -    
-
    
-
    
-
    
-
 
Decrease from Shareholder Distributions:                       - 
Distributions of investment income   -    
-
    
-
    (12,184,227)   (12,184,227)
Capital Share Transactions:                       - 
Proceeds from issuance of common stock   -    
-
    
-
    
-
    
-
 
Repurchases of common stock   -    
-
    
-
    
-
    
-
 
Capital contribution from Manager        
-
    
-
    
-
    
-
 
Stock dividend distribution   64,827    65    1,386,479    
-
    1,386,544 
Offering costs        
-
         
-
    
-
 
Tax reclassification of stockholders’ equity in accordance with generally accepted accounting principles        
-
    
-
    
-
    
-
 
Balance at May 31, 2026  $16,289,025   $16,289   $440,588,956   $(62,150,287)  $378,454,958