Note 7. Commitments and Contingencies

Commitments: The Company had outstanding commitments to portfolio companies to fund various undrawn revolving loans, other debt investments and capital commitments totaling $37,181 and $12,363 as of December 31, 2025 and 2024, respectively. Such outstanding commitments are summarized in the following table:

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

 

Total

 

 

Unfunded

 

 

Total

 

 

Unfunded

 

 

Portfolio Company - Investment

 

Commitment

 

 

Commitment

 

 

Commitment

 

 

Commitment

 

 

Acendre Midco, Inc. - Revolving Loan

 

$

1,000

 

 

$

 

 

$

1,000

 

 

$

 

 

Ad Info Parent, Inc. (dba MediaRadar) - Revolving Loan

 

 

1,442

 

 

 

1,195

 

 

 

1,442

 

 

 

865

 

 

Air Burners, Inc. - Common Equity

 

 

1,000

 

 

 

200

 

 

 

 

 

 

 

 

Axis Medical Technologies LLC (dba MoveMedical) - Revolving Loan

 

 

800

 

 

 

800

 

 

 

800

 

 

 

800

 

 

Bobcat of Connecticut, LLC - Common Equity

 

 

250

 

 

 

250

 

 

 

 

 

 

 

 

Choice Technology Solutions, LLC (dba Choice Merchant Solutions, LLC) - Revolving Loan

 

 

 

 

 

 

 

 

1,000

 

 

 

1,000

 

 

Detechtion Holdings, LLC - First Lien Debt

 

 

1,250

 

 

 

 

 

 

 

 

 

 

 

Detechtion Holdings, LLC - Revolving Loan

 

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

 

1,000

 

 

Elements Brands, LLC - Revolving Loan

 

 

 

 

 

 

 

 

1,500

 

 

 

 

 

Enterprise Asset Management FM Purchaser, Inc. (dba MCIM) - First Lien Debt

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

Fraser Steel LLC - Revolving Loan

 

 

 

 

 

 

 

 

 

 

 

 

 

Fishbowl Solutions, LLC - Revolving Loan

 

 

3,000

 

 

 

3,000

 

 

 

3,000

 

 

 

2,223

 

 

GMP HVAC, LLC (dba McGee Heating & Air, LLC) - Revolving Loan

 

 

 

 

 

 

 

 

1,500

 

 

 

1,500

 

 

KG Lawn Care, Inc. (dba King Green) - First Lien Debt

 

 

2,500

 

 

 

2,500

 

 

 

 

 

 

 

 

Laboratory Testing, LLC - Revolving Loan

 

 

4,000

 

 

 

3,427

 

 

 

 

 

 

 

 

Mayesh Wholesale Florist, LLC - First Lien Debt

 

 

2,000

 

 

 

2,000

 

 

 

 

 

 

 

 

NWS Technologies, LLC - First Lien Debt

 

 

1,900

 

 

 

1,140

 

 

 

 

 

 

 

 

PayEntry Financial Services, Inc. (dba Payentry) - Second Lien (DDTL B)

 

 

1,563

 

 

 

1,563

 

 

 

 

 

 

 

 

PayEntry Financial Services, Inc. (dba Payentry) - Second Lien (DDTL B)

 

 

1,563

 

 

 

1,563

 

 

 

 

 

 

 

 

PIPCO, LLC - Revolving Loan

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

Pronto Plumbing & Drain, Inc. - Revolving Loan

 

 

500

 

 

 

500

 

 

 

 

 

 

 

 

Tedia Company, LLC - Revolving Loan

 

 

2,250

 

 

 

1,750

 

 

 

2,250

 

 

 

2,250

 

 

Thrust Flight LLC - First Lien Debt

 

 

1,818

 

 

 

1,818

 

 

 

2,625

 

 

 

2,625

 

 

True Environmental Inc. - First Lien Debt

 

 

3,375

 

 

 

3,375

 

 

 

 

 

 

 

 

VMS MSO, LLC (dba Vytal Health Partners) - Revolving Loan

 

 

1,500

 

 

 

1,500

 

 

 

 

 

 

 

 

W50 Holdings, LLC - Preferred Equity

 

 

1,000

 

 

 

100

 

 

 

1,000

 

 

 

100

 

 

Waterworks Solutions Acquisition, Inc. (dba CITCO Water) - First Lien Debt

 

 

3,500

 

 

 

3,500

 

 

 

 

 

 

 

 

Total

 

$

43,211

 

 

$

37,181

 

 

$

17,117

 

 

$

12,363

 

 

Additional detail for each of the commitments above is provided in the Company’s consolidated schedules of investments. As of December 31, 2025 and 2024, the Company had sufficient liquidity coverage to satisfy these unfunded commitments. Cash and cash equivalents were $69,995 and $57,159 and available borrowings under the SPV Credit Facility and the Revolving Credit Facility were $141,150 and $95,000 as of December 31, 2025 and 2024, respectively.

The commitments are generally subject to the borrowers meeting certain criteria such as compliance with financial and non-financial covenants, which may limit such borrower's ability to draw on a revolving loan or delayed draw loan. Since commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide indemnifications under certain circumstances. In addition, in connection with the disposition of an investment in a portfolio company, the Company may be required to make representations about the business and financial affairs of such portfolio company typical of those made in connection with the sale of a business. The Company may also be required to indemnify the purchasers of such investment to the extent that any such representations are inaccurate. 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 yet occurred. The Company expects the risk of future obligation under these indemnifications to be remote.

Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While the outcome of any such legal proceedings cannot be predicted with certainty, the Company does not believe any such legal proceedings will have a material adverse effect on the Company’s consolidated financial statements.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 6, 2025
2023Feb 29, 2024
2022Mar 2, 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.