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Stellus Capital Investment Corporation Reports Results for its Second Fiscal Quarter Ended June 30, 2025

By PR Newswire | August 06, 2025, 4:05 PM

HOUSTON, Aug. 6, 2025 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended June 30, 2025.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended June 30, 2025, in which we earned U.S. GAAP net investment income of $0.34 per share and core net investment income of $0.35 per share. During the quarter, we funded $23 million of investments and received $32 million of repayments, resulting in a total portfolio of $986 million at fair value. We raised an additional $4 million of equity during the quarter under the at-the-market equity program. I'm also pleased to report that our investors have received a total of $306 million in distributions, equivalent to $17.35 per share, since we began operations."

FINANCIAL HIGHLIGHTS

($ in millions, except data relating to per share amounts and shares outstanding)



Three Months Ended



Six Months Ended



June 30, 2025



June 30, 2024



June 30, 2025



June 30, 2024



Amount

Per Share



Amount

Per Share



Amount

Per Share



Amount

Per Share

Net investment income

$9.56

$0.34



$11.79

$0.48



$19.35

$0.69



$22.03

$0.90

Core net investment income(1)

9.99

0.35



12.37

0.50



20.28

0.72



22.97

0.94

Net realized (loss) gain on investments

(0.86)

(0.03)



1.99

0.07



(6.83)

(0.24)



(18.39)

(0.75)

Net realized loss on foreign currency translation

(0.02)



(0.03)



(0.05)



(0.05)

Total realized income(2)

$8.68

$0.31



$13.75

$0.55



$12.47

$0.45



$3.59

$0.15

Distributions

(11.36)

(0.40)



(10.05)

(0.41)



(22.45)

(0.80)



(19.70)

(0.81)

Net unrealized change in appreciation (depreciation) on investments

1.44

0.05



(5.58)

(0.22)



2.63

0.09



17.92

0.73

Net unrealized change in appreciation (depreciation) on foreign currency translation

0.03



(0.01)



0.04



(0.01)

Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries



0.38

0.02



-

-



0.19

0.01

Net increase in net assets resulting from operations

$10.15

$0.36



$8.54

$0.35



$15.14

$0.54



$21.69

$0.89

Weighted average shares outstanding



28,412,849





24,733,966





28,009,969





24,429,804





(1)

Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.

(2)

Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures.

PORTFOLIO ACTIVITY

($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)





As of



As of













June 30, 2025



December 31, 2024









Investments at fair value



$985.9



$953.5









Total assets



$1,034.8



$980.9









Net assets



$375.4



$369.9









Shares outstanding



28,416,148



27,481,118









Net asset value per share



$13.21



$13.46































Three Months Ended



Six Months Ended





June 30, 2025



June 30, 2024



June 30, 2025



June 30, 2024

New investments



$22.8



$66.3



$78.2



$94.9

Repayments of investments



(31.6)



(40.7)



(46.6)



(71.8)

Net activity



($8.8)



$25.6



$31.6



$23.1























As of



As of













June 30, 2025



December 31, 2024









Number of portfolio company investments



112



105









Number of debt investments



98



92



























Weighted average yield of debt and other income producing investments (3)

















Cash



9.3 %



9.5 %









Payment-in-kind ("PIK")



0.5 %



0.4 %









Fee amortization



0.4 %



0.4 %









Total



10.2 %



10.3 %



























Weighted average yield of total investments(4)

















Cash



8.7 %



8.9 %









PIK



0.5 %



0.4 %









Fee amortization



0.4 %



0.4 %









Total



9.6 %



9.7 %













(3)

The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors.

(4)

The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status.

Results of Operations

Investment income for the three months ended June 30, 2025 and 2024 totaled $25.7 million and $26.6 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended June 30, 2025 and 2024 totaled $17.1 million and $16.5 million, respectively. For the same respective periods, base management fees totaled $4.3 million and $3.9 million, income incentive fees totaled $2.2 million and $2.6 million, fees and expenses related to our borrowings totaled $8.7 million and $8.1 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million and $0.5 million, income tax totaled $0.4 million and $0.6 million and other expenses totaled $1.0 million and $0.8 million. The Company waived $1.0 million and $1.7 million of income incentive fees due to the total return limitation contained in the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended June 30, 2025 and 2024, respectively, for net operating expenses of $16.1 million and $14.8 million, respectively.

Net investment income was $9.6 million and $11.8 million, or $0.34 and $0.48 per common share based on  28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June 30, 2025 and 2024, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended June 30, 2025 and 2024 was $10.0 million and $12.4 million, or $0.35 and $0.50 per share, respectively.

For the three months ended June 30, 2025 and 2024, the Company's investment portfolio had a net change in unrealized appreciation (depreciation) of $1.4 million and ($5.6) million, respectively, and the Company had net realized (losses) gains of ($0.9) million and $2.0 million, respectively.

Net increase in net assets resulting from operations totaled $10.1 million and $8.5 million, or $0.36 and $0.35 per common share, based on 28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

As of June 30, 2025, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $315.0 million on a committed basis. As of June 30, 2025 and December 31, 2024, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $350.0 million.

As of June 30, 2025 and December 31, 2024, the Company had $163.1 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively.

The Company issued 278,945 shares during the three months ended June 30, 2025 under the at-the-market program ("ATM Program") for gross proceeds of $3.9 million. The average per share offering price of shares issued under the ATM Program during the three months ended June 30, 2025 was $13.97. Stellus Capital Management, LLC, the Company's investment adviser (the "Advisor"), has agreed to reimburse the Company for underwriting fees to the extent the per share price of the shares to the public, less underwriting fees, was less than net asset value per share.

Distributions

For both the three months ended June 30, 2025 and 2024, the Company declared aggregate distributions of $0.40 per share for both periods ($11.4 million and $10.0 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.

Recent Portfolio Activity

The Company invested in the following portfolio companies during the three months ended June 30, 2025:

Activity Type



Date



Company Name



Company Description



Investment Amount



 Instrument Type

Add-On Investment



April 8, 2025



TriplePoint Acquisition Holdings LLC*



Provider of HVAC, plumbing, and other mechanical and industrial services



$

1,773,809



Senior Secured – First Lien

Add-On Investment



April 25, 2025



Elliott Aviation, LLC*



Provider of maintenance, repair, and overhaul and fixed-base operator services to the business aviation sector



$

57,899



Senior Secured – First Lien

















$

105



Equity

New Investment



April 30, 2025



Gourmet Specialty Foods, LLC



Provider of ready-to-cook value-added proteins to grocery retailers



$

4,270,705



Senior Secured – First Lien

















$

2,847,136



Delayed Draw Term Loan Commitment

















$

100,000



Revolver Commitment

















$

240,595



Equity

Add-On Investment



May 5, 2025



FairWave Holdings, LLC*



Specialty coffee platform



$

19,336



Equity

Add-On Investment



May 8, 2025



Unicat Catalyst Holdings, LLC*



Manufacturer and distributor of catalysts and other industrial products



$

13,961



Equity

Add-On Investment



May 21, 2025



The Hardenbergh Group, Inc. *



Provider of temporary professional staffing of medical services professionals, external peer review, consulting and physician leadership solutions



$

243,044



Equity

Add-On Investment



May 30, 2025



WER Holdings, LLC*



Regional provider of commercial landscaping services



$

426,885



Senior Secured – First Lien

















$

2,366,945



Delayed Draw Term Loan Commitment

New Investment



June 3, 2025



International Cybernetics Company, LP



Provider of road condition assessment services and equipment'



$

4,748,003



Senior Secured – First Lien

















$

3,561,003



Delayed Draw Term Loan Commitment

















$

100,000



Revolver Commitment

















$

105,113



Equity

Add-On Investment



June 4, 2025



Eskola LLC*



Provider of commercial re-roofing services



$

56,349



Equity

New Investment



June 6, 2025



Solid Surface Care Holdings, Inc.



National commercial surface care and restoration company



$

5,694,273



Senior Secured – First Lien

















$

4,270,705



Delayed Draw Term Loan Commitment

















$

100,000



Revolver Commitment

















$

377,437



Equity

Add-On Investment



June 27, 2025



Monitorus Holding, LLC*



Provider of media monitoring and evaluation services



$

1,722,767



Senior Secured – First Lien

________________________________

*Existing portfolio company

The Company realized investments in the following portfolio companies during the three months ended June 30, 2025:

Activity Type



Date



Company Name



Company Description



Proceeds Received



Realized Gain (Loss)



 Instrument Type

Full Repayment



April 8, 2025



Florachem Corporation



Distiller and supplier of natural citrus, pine, and specialty inputs



$

9,725,000



$



Senior Secured – First Lien

















$

53,078



$



Delayed Draw Term Loan Commitment

















$

100,000



$



Revolver Commitment

Full Realization















$

514,107



$

151,674



Equity

Restructured Investment



April 9, 2025



J.R. Watkins, LLC



Manufacturer and distributor of home and personal care products



$



$

(1,132,576)



Equity

Full Repayment



May 29, 2025



Anne Lewis Strategies, LLC



Provider of tech-enabled donor targeting and strategic digital fundraising services for non-profit and political organizations.



$

11,801,341



$



Senior Secured – First Lien

________________________________

*Existing portfolio company

Events Subsequent to June 30, 2025

The Company's management has evaluated subsequent events through August 6, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below.

Investment Portfolio

The Company invested in the following portfolio companies subsequent to June 30, 2025:

Activity Type



Date



Company Name



Company Description



Investment Amount



 Instrument Type

Add-On Investment



July 1, 2025



Bart & Associates, LLC*



Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry



$

303,740



Equity

Add-On Investment



July 28, 2025



Equine Network, LLC*



Hosts competitions and provides services for the U.S. equine industry



$

2,067,538



Senior Secured – First Lien

New Investment



July 31, 2025



The Millennium Alliance, LLC



Facilitator of peer-to-peer events connecting companies with technology solution providers



$

11,500,000



Senior Secured – First Lien

















$

100,000



Revolver Commitment

















$

515,556



Equity

New Investment



July 31, 2025



Project EC**



Provider of homecare services



$

7,785,007



Senior Secured – First Lien

















$

2,500,000



Delayed Draw Term Loan Commitment

















$

100,000



Revolver Commitment

















$

910,966



Equity

Add-On Investment



May 5, 2025



MedLearning Group, LLC*



Provider of continuing medical education services



$

2,981,213



Senior Secured – First Lien

________________________________

*Existing portfolio company

** The name of this portfolio company is not disclosed at this time due to confidentiality restrictions. The name of this portfolio company will be disclosed in the Company's quarterly report for the quarter ending September 30, 2025.

The Company realized investments in the following portfolio companies subsequent to June 30, 2025:

Activity Type



Date



Company Name



Company Description



Proceeds Received



 Instrument Type

Full Repayment



July 31, 2025



Rogers Mechanical Contractors, LLC



HVAC and plumbing designer, installer, and service provider for new/existing data centers, fulfilment sortation facilities, and warehouses



$

8,272,652



Senior Secured – First Lien

Credit Facility

The outstanding balance under the Credit Facility as of August 6, 2025 was $162.2 million.

Distributions Declared

On July 2, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of July 2025, August 2025, and September 2025 as follows:





Ex-Dividend



Record



Payment



Amount per

Declared



Date



Date



Date



Share

7/2/2025



7/31/2025



7/31/2025



8/15/2025



$

0.1333

7/2/2025



8/29/2025



8/29/2025



9/15/2025



$

0.1333

7/2/2025



9/30/2025



9/30/2025



10/15/2025



$

0.1333

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Thursday, August 7, 2025 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.

For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 398771. Starting approximately two hours after the conclusion of the call, a replay will be available through Thursday, August 21, 2025 by dialing (877) 481-4010 and entering passcode 52804. The replay will also be available on the Company's website.

For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.

About Stellus Capital Investment Corporation

The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab.

Forward-Looking Statements

Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts

Stellus Capital Investment Corporation

W. Todd Huskinson, Chief Financial Officer

(713) 292-5414

[email protected]

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES



















June 30, 2025









(unaudited)



December 31, 2024

ASSETS













Controlled investments at fair value (amortized cost of $32,732,016 and $17,934,808, respectively)



$

13,046,041



$

7,652,436

Non-controlled, non-affiliated investments, at fair value (amortized cost of $957,687,672 and $943,853,898, respectively)





972,839,633





945,845,252

Cash and cash equivalents





39,991,690





20,058,594

Receivable for sales and repayments of investments





399,106





335,689

Interest receivable





5,869,109





4,947,765

Income tax receivable





2,045,697





1,301,965

Other receivables





17,500





87,995

Related party receivable









3,687

Deferred offering costs





109,059





Prepaid expenses





447,891





666,866

Total Assets



$

1,034,765,726



$

980,900,249

LIABILITIES













Notes Payable



$

172,310,201



$

99,444,355

Credit Facility payable





160,622,440





172,314,315

SBA-guaranteed debentures





305,373,199





321,251,939

Dividends payable





3,787,873





3,663,233

Management fees payable





4,279,441





4,034,109

Income incentive fees payable





2,052,194





3,109,560

Interest payable





6,529,422





5,281,343

Related party payable





1,088,287





Unearned revenue





676,290





548,626

Administrative services payable





415,810





393,513

Other accrued expenses and liabilities





2,259,679





937,316

Total Liabilities



$

659,394,836



$

610,978,309

Commitments and contingencies (Note 7)













Net Assets



$

375,370,890



$

369,921,940

NET ASSETS













Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,416,148 and 27,481,118 shares issued and outstanding, respectively)



$

28,416



$

27,481

Paid-in capital





392,309,339





379,549,272

Total distributable loss





(16,966,865)





(9,654,813)

Net Assets



$

375,370,890



$

369,921,940

Total Liabilities and Net Assets



$

1,034,765,726



$

980,900,249

Net Asset Value Per Share



$

13.21



$

13.46

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)































For the three months ended



For the six months ended





June 30, 2025



June 30, 2024



June 30, 2025



June 30, 2024

INVESTMENT INCOME

























From controlled investments:

























Interest income



$



$



$



$

81,636

From non-controlled, non-affiliated investments

























Interest income





24,654,205





25,164,944





48,781,321





50,121,795

Other income





1,042,397





1,461,255





1,866,939





2,419,517

Total Investment Income



$

25,696,602



$

26,626,199



$

50,648,260



$

52,622,948

OPERATING EXPENSES

























Management fees



$

4,279,441



$

3,852,233



$

8,334,167



$

7,704,466

Valuation fees





38,507





35,711





196,396





192,218

Administrative services expenses





474,284





481,261





923,582





972,162

Income incentive fees





2,158,075





2,542,530





4,294,566





5,051,640

Professional fees





312,808





196,205





730,839





535,832

Directors' fees





93,250





114,250





204,500





222,500

Insurance expense





98,668





125,489





195,758





250,478

Interest expense and other fees





8,680,015





8,116,497





16,943,034





15,884,070

Income tax expense





428,951





574,037





928,498





944,756

Other general and administrative expenses





500,302





417,867





718,653





663,142

Total Operating Expenses



$

17,064,301



$

16,456,080



$

33,469,993



$

32,421,264

Income incentive fee waiver





(928,926)





(1,622,542)





(2,171,769)





(1,826,893)

Total Operating Expenses, net of fee waivers



$

16,135,375



$

14,833,538



$

31,298,224



$

30,594,371

Net Investment Income



$

9,561,227



$

11,792,661



$

19,350,036



$

22,028,577

Net realized loss on controlled investments



$

(1,132,576)



$



$

(1,132,576)



$

Net realized gain (loss) on non-controlled, non-affiliated investments





272,549





1,992,482





(5,694,672)



$

(18,392,249)

Net realized loss on foreign currency translations





(20,003)





(29,789)





(49,658)





(54,895)

Net change in unrealized appreciation on controlled investments





1,290,491





138,189





1,345,767





674,759

Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments





143,176





(5,724,870)





1,281,193





17,257,150

Net change in unrealized appreciation (depreciation) on foreign currency translations





30,546





(5,887)





38,865





(9,489)

Benefit for taxes on net unrealized depreciation on investments









381,500









188,893

Net Increase in Net Assets Resulting from Operations



$

10,145,410



$

8,544,286



$

15,138,955



$

21,692,746

Net Investment Income Per Share—basic and diluted



$

0.34



$

0.48



$

0.69



$

0.90

Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted



$

0.36



$

0.35



$

0.54



$

0.89

Weighted Average Shares of Common Stock Outstanding—basic and diluted





28,412,849





24,733,966





28,009,969





24,429,804

Distributions Per Share—basic and diluted



$

0.40



$

0.41



$

0.80



$

0.81

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)



































Common Stock









Total











Number 



Par 



Paid-in 



distributable











of shares



value



capital



(loss)



Net Assets

Balances at December 31, 2023



24,125,642



$

24,125



$

335,918,984



$

(16,003,321)



$

319,939,788

Net investment income















10,235,916





10,235,916

Net realized loss on investments















(20,384,731)





(20,384,731)

Net realized loss on foreign currency translations















(25,106)





(25,106)

Net change in unrealized appreciation on investments















23,518,590





23,518,590

Net change in unrealized depreciation on foreign currency translations















(3,602)





(3,602)

Provision for taxes on unrealized appreciation on investments















(192,607)





(192,607)

Distributions from net investment income















(9,647,844)





(9,647,844)

Balances at March 31, 2024



24,125,642



$

24,125



$

335,918,984



$

(12,502,705)



$

323,440,404

Net investment income















11,792,661





11,792,661

Net realized gain on investments















1,992,482





1,992,482

Net realized loss on foreign currency translations















(29,789)





(29,789)

Net change in unrealized depreciation on investments















(5,586,681)





(5,586,681)

Net change in unrealized depreciation on foreign currency translations















(5,887)





(5,887)

Benefit for taxes on unrealized depreciation on investments















381,500





381,500

Distributions from net investment income















(10,049,073)





(10,049,073)

Issuance of common stock, net of offering costs(1)



1,855,356





1,856





25,248,020









25,249,876

Balances at June 30, 2024



25,980,998



$

25,981



$

361,167,004



$

(14,007,492)



$

347,185,493































Balances at December 31, 2024



27,481,118



$

27,481



$

379,549,272



$

(9,654,813)



$

369,921,940

Net investment income















9,788,809





9,788,809

Net realized loss on investments















(5,967,221)





(5,967,221)

Net realized loss on foreign currency translations















(29,655)





(29,655)

Net change in unrealized appreciation on investments















1,193,293





1,193,293

Net change in unrealized depreciation on foreign currency translations















8,319





8,319

Distributions from net investment income















(11,087,389)





(11,087,389)

Issuance of common stock, net of offering costs(1)



656,085





656





8,937,430









8,938,086

Balances at March 31, 2025



28,137,203



$

28,137



$

388,486,702



$

(15,748,657)



$

372,766,182

Net investment income















9,561,227





9,561,227

Net realized loss on investments















(860,027)





(860,027)

Net realized loss on foreign currency translations















(20,003)





(20,003)

Net change in unrealized appreciation on investments















1,433,667





1,433,667

Net change in unrealized appreciation on foreign currency translations















30,546





30,546

Distributions from net investment income















(11,363,618)





(11,363,618)

Issuance of common stock, net of offering costs(1)



278,945





279





3,822,637









3,822,916

Balances at June 30, 2025



28,416,148



$

28,416



$

392,309,339



$

(16,966,865)



$

375,370,890

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)



















For the six months ended





June 30, 2025



June 30, 2024

Cash Flows from Operating Activities













Net increase in net assets resulting from operations



$

15,138,955



$

21,692,746

Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:













Purchases of investments





(78,230,159)





(94,854,139)

Proceeds from sales and repayments of investments





46,638,287





71,824,905

Net change in unrealized appreciation on investments





(2,626,960)





(17,931,909)

Net change in unrealized (appreciation) depreciation on foreign currency translations





(38,865)





9,490

Increase in investments due to PIK





(2,492,551)





(1,555,868)

Amortization of premium and accretion of discount, net





(1,437,223)





(1,383,624)

Deferred tax benefit









(188,893)

Amortization of loan structure fees





634,745





544,379

Amortization of deferred financing costs





303,468





222,747

Amortization of discount on Notes Payable





31,434





Amortization of loan fees on SBA-guaranteed debentures





371,260





550,059

Net realized loss on investments





6,827,248





18,392,249

Changes in other assets and liabilities













Increase in interest receivable





(921,344)





(2,780,809)

Increase in income tax receivable





(743,732)





(585,741)

Decrease (increase) in other receivables





70,495





(92,671)

Decrease in related party receivables





3,687





Decrease in prepaid expenses





218,975





193,937

Increase (decrease) in management fees payable





245,332





(2,066,303)

Decrease in income incentive fees payable





(1,057,366)





(1,450,096)

Increase in administrative services payable





22,297





24,023

Increase in interest payable





1,248,079





7,256

Increase in related party payable





1,088,287





337,500

Increase in unearned revenue





127,664





174,518

Increase in other accrued expenses and liabilities





1,322,363





268,894

Net Cash Used in Operating Activities



$

(13,255,624)



$

(8,647,350)

Cash Flows from Financing Activities













Proceeds from the issuance of common stock



$

13,153,366



$

25,777,185

Sales load for common stock issued





(197,464)





(386,987)

Offering costs paid for common stock issued





(303,959)





(133,010)

Stockholder distributions paid





(22,326,367)





(16,233,650)

Proceeds from issuance of Notes Payable





75,000,000





Discount from issuance of Notes Payable





(770,250)





Financing costs paid on Notes Payable





(1,698,806)





Repayments of SBA-guaranteed debentures





(16,250,000)





Financing costs paid on Credit Facility









(66,348)

Borrowings under Credit Facility





104,400,000





104,400,000

Repayments of Credit Facility





(117,817,800)





(94,967,800)

Net Cash Provided by Financing Activities



$

33,188,720



$

18,389,390

Net Increase in Cash and Cash Equivalents



$

19,933,096



$

9,742,040

Cash and Cash Equivalents Balance at Beginning of Period



$

20,058,594



$

26,125,741

Cash and Cash Equivalents Balance at End of Period



$

39,991,690



$

35,867,781

Supplemental and Non-Cash Activities













Cash paid for interest expense



$

14,354,048



$

14,559,629

Income and excise tax paid





1,672,230





1,530,497

Increase in distributions payable





124,640





3,463,267

Increase (decrease) in deferred offering costs





109,059





(7,312)

Exchange of investments





1,663,301





8,256,411

 

Reconciliation of Core Net Investment Income(1)

(Unaudited)























Three Months Ended



Six Months Ended





June 30, 2025



June 30, 2024



June 30, 2025



June 30, 2024

Net investment income



$9,561,227



$11,792,661



$19,350,036



$22,028,577

Income tax expense



428,951



574,037



928,498



944,756

Core net investment income



$9,990,178



$12,366,698



$20,278,534



$22,973,333



















Per share amounts:

















Net investment income per share



$0.34



$0.48



$0.69



$0.90

Core net investment income per share



$0.35



$0.50



$0.72



$0.94

 

Reconciliation of Realized Net Investment Income(2)

(Unaudited)























Three Months Ended



Six Months Ended





June 30, 2025



June 30, 2024



June 30, 2025



June 30, 2024

Net investment income



$9,561,227



$11,792,661



$19,350,036



$22,028,577

Net realized loss on investments



(860,027)



1,992,482



(6,827,248)



(18,392,249)

Net realized loss on foreign currency translation



(20,003)



(29,789)



(49,658)



(54,895)

Total realized net investment income



$8,681,197



$13,755,354



$12,473,130



$3,581,433



















Per share amounts:

















Net investment income per share



$0.34



$0.48



$0.69



$0.90

Realized net investment income per share



$0.31



$0.55



$0.45



$0.15

 

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SOURCE Stellus Capital Investment Corporation

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