8. COMMITMENTS AND CONTINGENCIES

From time-to-time the Company is a party to financial instruments with off-balance sheet risk in the normal course of business in order to meet the needs of the Company’s investment in portfolio companies. Such instruments include commitments to extend credit and may involve, in varying degrees, elements of credit risk in excess of amounts recognized on the Company’s consolidated statements of assets and liabilities. Prior to extending such credit, the Company attempts to limit its credit risk by conducting extensive due diligence, obtaining collateral where necessary and negotiating appropriate financial covenants. As of December 31, 2025 and December 31, 2024, the Company had $30.0 million and $27.2 million of unfunded commitments, respectively.

The Company may, from time to time, enter into commitments to fund investments. These unfunded commitments are assessed for fair value in accordance with ASC 820. As of December 31, 2025 and December 31, 2024, the Company had the following outstanding commitments to fund investments in current portfolio companies:

 

($ in thousands)

 

 

 

Par Value

 

 

Par Value

 

Portfolio Company

 

Investment

 

December 31, 2025

 

 

December 31, 2024

 

Accordion Partners LLC (Revolver)

 

 First Lien Debt

 

N/A

 

 

$

1,623

 

Accordion Partners LLC(1)

 

 First Lien Debt

 

N/A

 

 

 

913

 

Anthem Sports & Entertainment Inc. (Revolver)

 

 First Lien Debt

 

N/A

 

 

 

83

 

Anthem Sports & Entertainment Inc.(1)

 

 First Lien Debt

 

N/A

 

 

 

307

 

BetaNXT, Inc. (Revolver)

 

 First Lien Debt

 

 

2,008

 

 

 

1,401

 

Bradshaw International Parent Corp. (Revolver)

 

 First Lien Debt

 

 

1,844

 

 

 

922

 

CCMG Buyer, LLC (Care Connectors Medical Group) (Revolver)

 

 First Lien Debt

 

 

500

 

 

 

500

 

Dentive, LLC (Revolver)

 

 First Lien Debt

 

 

210

 

 

 

117

 

Dentive, LLC(1)

 

 First Lien Debt

 

N/A

 

 

 

427

 

Epilog Partners SPV III, LLC (Care Connectors Medical Group)

 

 Equity

 

 

74

 

 

 

87

 

Fortis Payment Systems, LLC(1)

 

 First Lien Debt

 

N/A

 

 

 

387

 

Franchise Group, Inc. (DIP)(1)

 

 First Lien Debt

 

N/A

 

 

 

249

 

HDC/HW Intermediate Holdings, LLC (Term Loan A)(1)

 

 First Lien Debt

 

N/A

 

 

 

 

IDC Infusion Services LLC(1)

 

 First Lien Debt

 

N/A

 

 

 

130

 

Luminii LLC (Revolver)

 

 First Lien Debt

 

N/A

 

 

 

172

 

Metrc Inc.(1)

 

 First Lien Debt

 

 

394

 

 

 

 

Metrc Inc. (Revolver)

 

 First Lien Debt

 

 

1,240

 

 

 

 

Middle West Spirits, LLC (Revolver)

 

 First Lien Debt

 

 

1,833

 

 

 

 

Morae Global Corporation (Revolver)

 

 First Lien Debt

 

 

100

 

 

 

208

 

Morae Global Corporation (Term Loan A)(1)

 

 First Lien Debt

 

 

2,143

 

 

 

 

Netwrix Corporation (Revolver)

 

 First Lien Debt

 

 

1,148

 

 

 

1,148

 

Newbury Franklin Industrials, LLC(1)

 

 First Lien Debt

 

 

853

 

 

 

987

 

PhyNet Dermatology LLC(1)

 

 First Lien Debt

 

N/A

 

 

 

690

 

PMA Parent Holdings LLC (Revolver)

 

 First Lien Debt

 

 

197

 

 

 

99

 

PMP OPCO, LLC (Princeton Medspa Partners, LLC) (Revolver)

 

 First Lien Debt

 

 

188

 

 

 

188

 

PMP OPCO, LLC (Princeton Medspa Partners, LLC)(1)

 

 First Lien Debt

 

 

182

 

 

 

1,125

 

Riddell, Inc.(1)

 

 First Lien Debt

 

N/A

 

 

 

636

 

Riskonnect Parent LLC(1)

 

 First Lien Debt

 

N/A

 

 

 

5,000

 

RN Enterprises, LLC(1)

 

 First Lien Debt

 

 

683

 

 

 

 

Series A - Great Lakes Funding II LLC

 

 Joint Ventures

 

N/A

 

 

 

8,165

 

Series B - Great Lakes Funding II LLC

 

 Joint Ventures

 

 

12,594

 

 

N/A

 

Shepherd Parent Holdings, LLC(1)

 

 First Lien Debt

 

 

568

 

 

 

 

Shepherd Parent Holdings, LLC (Revolver)

 

 First Lien Debt

 

 

387

 

 

 

 

Spark Buyer, LLC(1)

 

 First Lien Debt

 

 

571

 

 

 

 

Spinrite, Inc. (Revolver)

 

 First Lien Debt

 

 

438

 

 

 

 

TA/WEG Holdings, LLC (Revolver)

 

 First Lien Debt

 

 

1,222

 

 

 

784

 

Tactical Air Support, Inc.(1)

 

 First Lien Debt

 

 

571

 

 

 

 

Taoglas Group Holdings Limited (Revolver)

 

 First Lien Debt

 

 

35

 

 

 

 

VBC Spine Opco LLC (DxTx Pain and Spine LLC) (Revolver)

 

 First Lien Debt

 

N/A

 

 

 

129

 

VBC Spine Opco LLC (DxTx Pain and Spine LLC)(1)

 

 First Lien Debt

 

N/A

 

 

 

761

 

Total Unfunded Portfolio Company Commitments

 

 

 

$

29,983

 

 

$

27,238

 

 

(1)
Delayed draw term loan.

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 13, 2025
2023Mar 13, 2024
2022Mar 9, 2023

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.