PhenixFIN Corp Commitments Disclosure
Note 8. Commitments
Unfunded commitments
As of September 30, 2025 and 2024, we had commitments under loan and financing agreements to fund up to $5.5 million to six portfolio companies and $1.6 million to two portfolio companies, respectively. These commitments are primarily composed of senior secured delayed draw term loans and revolvers, and the determination of their fair value is included in the Consolidated Schedules of Investments. The commitments are generally subject to the borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. The terms of the borrowings and financings subject to commitment are comparable to the terms of other loan and equity securities in our portfolio. The Company maintains adequate liquidity to fund its unfunded commitments. A summary of the composition of the unfunded commitments as of September 30, 2025 and 2024 is shown in the table below (dollars in thousands):
| September 30,
2025 | September 30,
2024 | |||||||
| MB Precision Investment Holdings LLC - Senior Secured First Lien Revolver | $ | 85 | $ | |||||
| MB Precision Investment Holdings LLC - Senior Secured Delayed Draw Term Loan | 1,521 | |||||||
| PREIT Associates - Revolver | 61 | - | ||||||
| PSB Group, LLC - Revolver | 472 | |||||||
| SS Acquisition, LLC (dba Soccer Shots Franchising) - Revolver | 1,029 | |||||||
| Tamarix Capital Partners II, L.P. - Fund Investment | 865 | 1,313 | ||||||
| WHI Global, LLC - Revolver | 1,484 | |||||||
| XYZ Roofco, LLC (dba SMC Roofing Solutions LLC) - First Out Delayed Draw Term Loan | 57 | |||||||
| XYZ Roofco, LLC (dba SMC Roofing Solutions LLC) - Last Out Delayed Draw Term Loan | 246 | |||||||
| Total unfunded commitments | $ | 5,517 | $ | 1,616 | ||||
Lease obligations
The Company evaluates its leases to determine whether they should be classified as operating or financing leases. PhenixFIN identified one operating lease for its office space. The lease commenced September 5, 2021. On December 18, 2024, the Company amended the terms of the lease, extending the lease term until August 31, 2035, with a right to terminate on the 36th and 60th month anniversaries of September 5, 2025, as well as any time on or after the 84th month anniversary of September 5, 2025.
Upon entering into the lease on September 5, 2021, PhenixFIN recorded a right-of-use asset and a as of that date.
As of September 30, 2025 and 2024, the asset related to the operating lease was $2.5 million and $0.3 million, respectively, and is included in the Other assets balance on the Consolidated Balance Sheet. As of September 30, 2025 and 2024, the lease liability was $2.4 million and $0.3, million, respectively, and is included in the Other liabilities balance on the Consolidated Statements of Assets and Liabilities. As of September 30, 2025 and September 30, 2024, the remaining lease term was approximately ten years and two years, respectively, and the implied borrowing rate was 6.85% and 5.25% for September 30, 2025 and September 30, 2024, respectively.
The following table shows future minimum payments under PhenixFIN’s operating lease as of September 30, 2025:
| For the Years Ended September 30, | Amount | |||
| 2026 | $ | 184,538 | ||
| 2027 | 325,261 | |||
| 2028 | 335,019 | |||
| 2029 | 345,070 | |||
| 2030 | 355,422 | |||
| Thereafter | 1,908,314 | |||
| 3,453,624 | ||||
| Difference between undiscounted and discounted cash flows | (1,014,219 | ) | ||
| $ | 2,439,405 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 12, 2025 | Showing above |
| 2024 | Dec 17, 2024 | |
| 2023 | Dec 22, 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.