MidCap Financial Investment Corp Income Taxes Disclosure

Note 9. Income Taxes

For income tax purposes, distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The final determination of the tax character of distributions will not be made until we file our tax return for each tax year and the tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of each calendar year. The tax character of distributions paid to stockholders during the tax periods ended December 31, 2025, 2024 and 2023 were as follows:

Taxable income generally differs from net increase in net assets resulting from operations for financial reporting purposes 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.

On December 22, 2010, the Regulated Investment Company Modernization Act (the “Act”) was enacted which changed various technical rules governing the tax treatment of RICs. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, the Company will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term losses rather than being considered all short-term as under previous law.

A portion of losses acquired from Apollo Senior Floating Rate Fund and Apollo Tactical Income Fund may be subject to limitations under the Internal Revenue Code 382.

As of December 31, 2025, the Company had a post-enactment short-term capital loss carryforward of $228,077 and long-term capital loss carryforward of $696,980. As of December 31, 2024, the Company had a post-enactment short-term capital loss carryforward of $226,198 and long-term capital loss carryforward of $890,185. As of December 31, 2023, the Company had a post-enactment short-term capital loss carryforward of $221,933 and long-term capital loss carryforward of $698,980.

As of December 31, 2025, the Company had no pre-enactment net capital loss carryforward. None of the pre-enactment net capital loss carryforwards were utilized in the past three years and none of the pre-enactment net capital loss carryforwards expired on December 31, 2025.

For tax purposes, the Company may elect to defer any portion of a post-October capital loss or late-year ordinary loss to the first day of the following fiscal year.

As of December 31, 2025, the Company deferred no late-year ordinary losses which are deemed to arise on January 1, 2025. As of December 31, 2024, the Company deferred no late-year ordinary losses which are deemed to arise on January 1, 2024. As of December 31, 2023, the Company deferred no late-year ordinary losses which are deemed to arise on January 1, 2023.

As of December 31, 2025, the Company deferred no post-October capital loss deemed to arise on January 1, 2026. As of December 31, 2024, the Company deferred no post-October capital loss deemed to arise on January 1, 2025. As of December 31, 2023, the Company deferred no post-October capital loss deemed to arise on January 1, 2024.

Management has analyzed the Company’s tax positions taken, or to be taken, on federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Company’s consolidated financial statements. The Company’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three fiscal years after they are filed.

In general, we may make certain reclassifications to the components of net assets as a result of permanent book-to-tax differences and book-to-tax differences relating to stockholder distributions. Accordingly, as of December 31, 2025, we adjusted accumulated net realized loss by $249,000 to $(870,079) and overdistributed net investment income by $(262,764) to $(276,687). Total earnings and net asset value were not affected. As of December 31, 2024, we adjusted accumulated net realized loss by $(129,898) to $(1,072,360) and overdistributed net investment income by ($15,634) to ($14,330). Total earnings and net asset value were not affected.