v3.26.1
Income Taxes
6 Months Ended
Jun. 30, 2026
Income Taxes  
Income Taxes

10.Income Taxes

The Company elected to be treated as a RIC under Subchapter M of the Code. As a RIC, the Company will not be 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 tax character of distributions for the years ended December 31, 2025 and 2024 was as follows:

  ​ ​ ​

For the Year Ended December 31, 

2025

  ​ ​ ​

2024

Distributions paid from:

 

  ​

Ordinary income (loss)

$

55,270

$

51,703

Deferred (accrued) income

 

(2,817)

(3,468)

Total distributions paid

$

52,453

$

48,235

The components of accumulated earnings (losses) on a tax basis for the years ended December 31, 2025 and 2024 were as follows:

  ​ ​ ​

For the Year Ended December 31, 

2025

  ​ ​ ​

2024

Undistributed net investment income (loss)

$

5,737

$

2,920

Net unrealized investment appreciation (depreciation)

 

(18,102)

2,194

Total accumulated earnings

$

(12,365)

$

5,114

The Company’s aggregate unrealized appreciation and depreciation on investments based on cost for U.S. federal income tax purposes as of December 31, 2025 and 2024 were as follows:

  ​ ​ ​

As of December 31, 

2025

  ​ ​ ​

2024

Tax cost of investments

$

818,202

$

773,995

Gross unrealized appreciation

$

11,249

$

9,916

Gross unrealized depreciation

 

(29,351)

(7,722)

Net unrealized investment appreciation (depreciation)

$

(18,102)

$

2,194

The following reconciles net increase in net assets resulting from operations to taxable income:

  ​ ​ ​

For the Year Ended December 31, 

2025

  ​ ​ ​

2024

Net increase in net assets resulting from operations

$

33,831

$

49,853

Net change in unrealized (appreciation) depreciation on investments

 

20,296

1,850

Net realized (gain) loss on investments

1,094

Permanent book income and tax income differences

 

Temporary book income and tax income differences

 

49

(26)

Taxable income

$

55,270

$

51,677

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.

ASC Topic 740, “Accounting for Uncertainty in Income Taxes” (“ASC 740”) provides guidance on the accounting for and disclosure of uncertainty in tax position. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Based on its analysis of its tax position for all open tax years (the current and prior years, as applicable), the Company has concluded that it does not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740. Such open tax years remain subject to examination and adjustment by tax authorities.