| COMMITMENTS AND CONTINGENCIES |
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 statements of assets and liabilities. The Company attempts to limit its credit risk by conducting extensive due diligence and obtaining collateral where appropriate. The balance of unfunded commitments to extend credit was $35,843 and $40,994 as of June 30, 2026 and December 31, 2025, respectively. Commitments to extend credit consist principally of the unused portions of commitments that obligate the Company to extend credit, such as revolving credit arrangements or similar transactions. These commitments are often subject to financial or non-financial milestones and other conditions to borrow that must be achieved before the commitment can be drawn. In addition, the commitments generally have fixed expiration dates or other termination clauses. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The following table summarizes the Company’s unfunded commitments as of June 30, 2026 and December 31, 2025: | | | | | | | Unfunded Commitments ($ in thousands) | | As of June 30, 2026 | | As of December 31, 2025 | Revolving Loan Commitments: | | | | | | | BUSA Acquisition Co. (d/b/a BankCard USA Merchant Services Inc.) | | $ | 643 | | $ | 643 | Claridge Products and Equipment, LLC | | | 70 | | | 140 | Cultural Experiences Abroad, LLC (d/b/a Cultural Experiences Abroad, Inc.) | | | 447 | | | — | EducationDynamics, LLC | | | 660 | | | 840 | Four Winds Health, LLC | | | 625 | | | 625 | Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.) | | | 134 | | | 235 | Infotree Holdco LLC (d/b/a Infotree Global Solutions LLC) | | | 530 | | | 530 | Intermedia Cloud Communications, Inc. (d/b/a Intermedia.net, Inc.) | | | 833 | | | — | Juniper Landscaping Holdings LLC | | | 513 | | | 677 | Leviathan Intermediate Holdco, LLC | | | 570 | | | 570 | LogicMonitor, Inc. | | | 778 | | | 778 | Media Source, LLC (d/b/a Media Source Inc.) | | | 675 | | | 825 | Meta Buyer LLC (d/b/a Metagenics, LLC) | | | — | | | 1,475 | Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC) | | | 76 | | | — | Quick Holdings, LLC (d/b/a Motivational Fulfillment) | | | 630 | | | 945 | M&M OpCo, LLC (d/b/a Escalent, Inc.) | | | 162 | | | 238 | NM Z Holdco Inc. (d/b/a Zep, Inc.) | | | 623 | | | — | PANOS Brands, LLC | | | 357 | | | 412 | PGI Parent LLC (d/b/a Prime Electric, Inc.) | | | — | | | 923 | Quest Events, LLC | | | 88 | | | 88 | Rewards Network Inc. | | | 2,394 | | | 1,915 | Ribbon Communications Operating Company, Inc. (d/b/a Ribbon Communications Inc.) | | | 880 | | | 880 | Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC) | | | 861 | | | 861 | Sleep OpCo LLC (d/b/a 3Z Brands) | | | 1,545 | | | 1,545 | Surge Amuze Holdings Inc. (d/b/a Amuze Products II, Inc.) | | | — | | | 281 | Telestream 2 LLC (d/b/a Telestream Holdings Corporation) | | | 497 | | | 497 | Texas Express Wash, LLC (d/b/a ClearWater Express Wash) | | | 311 | | | 311 | The Kyjen Company, LLC (d/b/a Outward Hound) | | | 563 | | | 798 | TOT Group, Inc. (d/b/a Netevia Group LLC) | | | 553 | | | 553 | Vibration Mountings & Controls, Inc. | | | 717 | | | — | W&A Intermediate Co., LLC (d/b/a Wakefield & Associates, LLC) | | | 325 | | | 428 | Whitestone Home Furnishings, LLC (d/b/a Saatva, Inc.) | | | 488 | | | — | Zephyr Buyer, L.P. (d/b/a The Weather Company, LLC) | | | 1,806 | | | 1,806 | Total unfunded revolving loan commitments | | | 19,354 | | | 19,819 | | | | | | | | Delayed Draw Loan Commitments: | | | | | | | Arcserve Cayman Opco LP (d/b/a Arcserve (USA), LLC) | | | 1,422 | | | 1,422 | Buckeye Acquiror LLC (d/b/a Superior Environmental Solutions, LLC) | | | — | | | 601 | Camarillo Fitness Holdings, LLC (f/k/a Honors Holdings, LLC) | | | — | | | 486 | Four Winds Health, LLC | | | 2,000 | | | 2,250 | Juniper Landscaping Holdings LLC | | | 1,657 | | | 2,769 | Kelso Industries LLC | | | 888 | | | — | LogicMonitor, Inc. | | | 1,000 | | | 1,000 | Meta Buyer LLC (d/b/a Metagenics, LLC) | | | — | | | 3,380 | MGT Merger Target, LLC (d/b/a MGT Consulting Group) | | | 868 | | | 1,076 | Rewards Network Inc. | | | 2,554 | | | 2,553 | Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC) | | | — | | | 861 | Surge Amuze Holdings Inc. (d/b/a Amuze Products II, Inc.) | | | 814 | | | 451 | Texas Express Wash, LLC (d/b/a ClearWater Express Wash) | | | 2,012 | | | 2,485 | TOT Group, Inc. (d/b/a Netevia Group LLC) | | | 553 | | | 553 | Vibration Mountings & Controls, Inc. | | | 1,433 | | | — | W&A Intermediate Co., LLC (d/b/a Wakefield & Associates, LLC) | | | 1,288 | | | 1,288 | Total unfunded delayed draw loan commitments | | | 16,489 | | | 21,175 | Total Unfunded Commitments | | $ | 35,843 | | $ | 40,994 |
As of June 30, 2026, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $23,000 and $92,000, respectively, of which $1,436 and $5,744 were unfunded, respectively. As of December 31, 2025, 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.
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