Annual report
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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00754 SLR INVESTMENT CORP. (Exact name of registrant as specified in its charter) Maryland 26-1381340(State of Incorporation) (I.R.S. EmployerIdentification Number) 500 Park AvenueNew York, N.Y. 10022(Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (212) 993-1670 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Stock, par value $0.01 per share SLRC The NASDAQ Global Select Market Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S- T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes ☒ No ☐ If securities are registered pursuant to Section 12(b) of the Exchange Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐ Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒ The aggregate market value of common stock held by non-affiliates of the Registrant on June 30, 2025 based on the closing price on that date of $16.14 on the NASDAQ Global Select Market was approximately $803.6 million. For the purposes of calculating this amount only, all directors and executive officers of the Registrant have been treated as affiliates. There were 54,554,634 shares of the Registrant’s common stock outstanding as of February 20, 2026. Auditor Firm Id: 185 Auditor Name: KPMG LLP Auditor Location: New York, NY
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Table of Contents SLR INVESTMENT CORP. FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS Page PART I Item 1. Business 1 Item 1A.Risk Factors 28 Item 1B.Unresolved Staff Comments 66 Item 1C.Cybersecurity 66 Item 2. Properties 67 Item 3. Legal Proceedings 67 Item 4. Mine Safety Disclosures 67 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 68 Item 6. Reserved 73 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 74 Item 7A.Quantitative and Qualitative Disclosures About Market Risk 95 Item 8. Financial Statements and Supplementary Data 96 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 140 Item 9A.Controls and Procedures 140 Item 9B.Other Information 140 Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 140 PART III Item 10. Directors, Executive Officers and Corporate Governance 141 Item 11. Executive Compensation 146 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 148 Item 13. Certain Relationships and Related Transactions, and Director Independence 150 Item 14. Principal Accountant Fees and Services 152 PART IV Item 15. Exhibit and Financial Statement Schedules 154 Item 16. Form 10-K Summary 157 Signatures 158
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Table of Contents 1 PART I Item 1. Business SLR Investment Corp. (the “Company”, “SLRC”, “we” or “our”), a Maryland corporation formed in November 2007, is a closed- end, externally managed, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Furthermore, as the Company is an investment company, it continues to apply the guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S. federal income tax purposes, the Company has elected to be treated, and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). In February 2010, we completed our initial public offering and a concurrent private offering of shares to our senior management team. We invest primarily in privately held U.S. middle-market companies, where we believe the supply of primary capital is limited and the investment opportunities are most attractive. Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in leveraged middle-market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. We define “middle market” to refer to companies with annual revenues typically between $50 million and $1 billion. From time to time, we may also invest directly in the debt and equity of public companies that are thinly traded and such investments will not be limited to any minimum or maximum market capitalization. In addition, we may invest in foreign markets, including emerging markets. Our business is focused primarily on the direct origination of investments through portfolio companies or their financial sponsors. Our investments generally range between $5 million and $100 million each, although we expect that this investment size will vary proportionately with the size of our capital base and/or with strategic initiatives. In addition, we may invest a portion of our portfolio in other types of investments, which we refer to as opportunistic investments, which are not our primary focus but are intended to enhance our overall returns. These investments may include, but are not limited to, direct investments in public companies that are not thinly traded and securities of leveraged companies located in select countries outside of the United States. The securities that we invest in are typically rated below investment grade. Securities rated below investment grade are often referred to as “leveraged loans,” “high yield” or “junk” securities, and may be considered “high risk” compared to debt instruments that are rated investment grade. In addition, some of our debt investments will not fully amortize during their lifetime, which means that a borrower may be unable to payoff its debt due to bankruptcy or other reasons and therefore we may write-off such debt investment prior to its scheduled maturity. Upon such an occurrence, we may realize a loss or a substantial amount of unpaid principal and interest due upon maturity. Our investment activities are managed by SLR Capital Partners, LLC (“SLR Capital Partners” or the “Investment Adviser”) and supervised by our board of directors (the “Board” or “board of directors”), a majority of whom are non-interested, as such term is defined in Section 2(a)(19) of the 1940 Act. SLR Capital Management, LLC (“SLR Capital Management” or the “Administrator”) provides the administrative services necessary for us to operate. On April 1, 2022, we acquired SLR Senior Investment Corp., a Maryland corporation (“SUNS”), pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 1, 2021, by and among us, SUNS, Solstice Merger Sub, Inc., a Maryland corporation and our wholly-owned subsidiary (“Merger Sub”), and, solely for the limited purposes set forth therein, the Investment Adviser. Pursuant to the Merger Agreement, Merger Sub merged with and into SUNS, with SUNS continuing as the surviving company and as SUNS’s wholly-owned subsidiary (the “Merger”) and, immediately thereafter, SUNS merged with and into us, with us continuing as the surviving company (together with the Merger, the “Mergers”). In accordance with the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of SUNS’s common stock was converted into the right to receive 0.7796 shares of our common stock (with SUNS’s stockholders receiving cash in lieu of fractional shares of our common stock). As a result of the Mergers, we issued an aggregate of 12,511,825 shares of our common stock to former SUNS stockholders. As of December 31, 2025, our investment portfolio totaled $2.1 billion and our net asset value was $996.0 million. Our portfolio was comprised of debt and equity investments in 100 portfolio companies.
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Table of Contents 2 SLR Capital Partners SLR Capital Partners, our investment adviser, is controlled and led by Michael S. Gross, our Chairman, Co-Chief Executive Officer and President, and Bruce Spohler, our Co-Chief Executive Officer and Chief Operating Officer. They are supported by a team of investment professionals. SLR Capital Partners’ investment team has extensive experience in leveraged lending and private equity, as well as significant contacts with financial sponsors. In addition, SLR Capital Partners currently serves as investment adviser to private funds and managed accounts as well as to SCP Private Credit Income BDC LLC, an unlisted BDC that primarily invests in first lien loans to upper middle market private leveraged companies, SLR HC BDC LLC, an unlisted BDC that primarily invests in first lien healthcare cash flow loans and life science loans, and SLR Private Credit BDC II LLC, an unlisted BDC focused on first lien senior secured floating rate loans. As of February 20, 2026, Mr. Gross and Mr. Spohler beneficially owned, either directly or indirectly, approximately 8.5% of our outstanding common stock. Mr. Gross has over 30 years of experience in the private equity, distressed debt and mezzanine (i.e., actually or structurally subordinated) lending businesses and has been involved in originating, structuring, negotiating, consummating and managing private equity, distressed debt and mezzanine lending transactions. Prior to his current role as our Chairman, Co-Chief Executive Officer and President, Mr. Gross founded Apollo Investment Corporation, a publicly traded BDC. He served as its chairman from February 2004 to July 2006 and its chief executive officer from February 2004 to February 2006. Under his management, Apollo Investment Corporation raised approximately $930 million in gross proceeds in an initial public offering in April 2004, built a dedicated investment team and infrastructure and invested approximately $2.3 billion in over 65 companies in conjunction with 50 different private equity sponsors. Mr. Gross is also a founder and a former senior partner of Apollo Global Management, a leading private equity firm. During his tenure at Apollo Global Management, Mr. Gross was a member of the investment committee that was responsible for overseeing more than $13 billion of investments in over 150 companies. Mr. Gross also has served on the boards of directors of more than 20 public and private companies. As a result, Mr. Gross has developed an extensive network of private equity sponsor relationships as well as relationships with management teams of public and private companies, investment bankers, attorneys and accountants that we believe should provide us with significant business opportunities. We also rely on the over 30 years of experience of Mr. Spohler, who has served as our Chief Operating Officer and a partner of SLR Capital Partners since its inception and as Co-Chief Executive Officer since June 2019. Previously, Mr. Spohler was a managing director and a former co-head of U.S. Leveraged Finance for CIBC World Markets. He held numerous senior roles at CIBC World Markets, including serving on the U.S. Management Committee, Global Executive Committee and the Deals Committee, which approves all of CIBC World Markets’ U.S. corporate finance debt capital decisions. During Mr. Spohler’s tenure, he was responsible for senior loan, high yield and mezzanine origination and execution, as well as CIBC World Markets’ below investment grade loan portfolio in the United States. As a co-head of U.S. Leveraged Finance, Mr. Spohler oversaw over 300 capital raising and merger and acquisition transactions, comprising over $40 billion in market capitalization. SLR Capital Partners’ senior investment professionals have been active participants in the primary and secondary leveraged credit markets throughout their careers. They have effectively managed portfolios of senior secured, distressed and mezzanine debt as well as other investment types. The depth of their prior experience and credit market experience has led them through various stages of the economic cycle as well as several market disruptions. SLR Capital Management Pursuant to an administration agreement (the “Administration Agreement”), SLR Capital Management furnishes us with office facilities, equipment and clerical, bookkeeping and record keeping services at such facilities. Under the Administration Agreement, SLR Capital Management also performs, or oversees the performance of, our required administrative services, which include, among other things, being responsible for the financial records which we are required to maintain and preparing reports to our stockholders. In addition, SLR Capital Management assists us in determining and publishing our net asset value, oversees the preparation and filing of our tax returns and the printing and dissemination of reports to our stockholders, and generally oversees the payment of our expenses and the performance of administrative and professional services rendered to us by others. SLR Capital Management also provides managerial assistance, if any, on our behalf to those portfolio companies that request such assistance.
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Table of Contents License Agreement We have entered into a license agreement with SLR Capital Partners pursuant to which SLR Capital Partners has agreed to grant us a non-exclusive, royalty-free license to use the name “SLR” and “SOLAR”. Under this agreement, we have a right to use the SLR and SOLAR name for so long as the Third Amended and Restated Investment Advisory and Management Agreement (the “Advisory Agreement”) with our investment adviser is in effect. Other than with respect to this limited license, we will have no legal right to the “SLR” or “SOLAR” name. Market Opportunity The Company invests directly and indirectly in leveraged middle-market companies, including in senior secured loans, and to a lesser extent, unsecured loans and equity securities. We believe that the size of this market, coupled with leveraged companies’ need for flexible sources of capital at attractive terms and rates, creates an attractive investment environment for us. • Middle-market companies continue to face increasing difficulty in accessing the capital markets. While many middle-market companies were formerly able to raise funds by issuing high-yield bonds, we believe this approach to financing has become more difficult in recent years as institutional investors have sought to invest in larger, more liquid offerings. In addition, many private finance companies that historically financed their lending and investing activities through securitization transactions have lost that source of funding and reduced lending significantly. Moreover, consolidation of lenders and market participants and the illiquid nature of investments have resulted in fewer middle-market lenders and market participants. • There is a large pool of uninvested private equity capital likely to seek additional capital to support their investments. We believe there is more than $500 billion of uninvested private equity capital seeking debt financing to support acquisitions. • The significant amount of debt maturing through 2026 should provide additional demand for capital. A high volume of financings are expected to mature through 2026. We believe that this supply of prospective lending opportunities coupled with a lack of available credit in the middle-market lending space may offer attractive risk-adjusted returns to investors. Risk- adjusted return compares returns against the amount of risk incurred. The term “risk-adjusted return” does not imply that an investment is no risk or low risk. • Investing in private middle-market debt provides an attractive risk reward profile. In general, terms for illiquid, middle-market subordinated debt have been more attractive than those for larger corporations which are typically more liquid. We believe this is because fewer institutions are able to invest in illiquid asset classes. Therefore, we believe that there is an attractive opportunity to invest in leveraged middle-market companies, including in senior secured loans, unitranche loans and, to a lesser extent, unsecured loans and equity securities, and that we are well positioned to serve this market. Competitive Advantages and Strategy We believe that we have the following competitive advantages over other providers of financing to leveraged companies: Management Experience As managing partner, Mr. Gross has principal management responsibility for SLR Capital Partners, to which he currently dedicates substantially all of his time. Mr. Gross has over 30 years of experience in leveraged finance, private equity and distressed debt investing. Mr. Spohler, our Co-Chief Executive Officer, Chief Operating Officer and a partner of SLR Capital Partners, has over 30 years of experience in evaluating and executing leveraged finance transactions. Investment Capacity The proceeds from our public offerings and the concurrent private placement, the borrowing capacities under the senior secured credit facility led by Citibank, N.A. (the “Credit Facility”) and the SUNS SPV LLC senior secured credit facility (the “SPV Credit Facility”), our $75 million of unsecured notes due 2026 (the “2026 Unsecured Notes”), our $50 million of unsecured senior notes due 2027 (the “2027 Unsecured Notes”), our $135 million of unsecured notes due 2027 (the “2027 Series F Unsecured Notes”), our $49 million of unsecured notes due 2027 (the “2027 Series G Unsecured Notes”), our $50 million of unsecured senior notes due 2028 (the “2028 Series H Unsecured Notes”), our $50 million of unsecured notes due 2028 (the “2028 Series I Unsecured Notes”), our $75 million of unsecured notes due 2028 (the “2028 Series J Unsecured Notes”), the available capital at our significant subsidiaries and the expected repayments of existing portfolio company investments provide us with a substantial amount of capital available for deployment into new investment opportunities. We believe we are well positioned for the current marketplace.
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Table of Contents 4 The Company’s Leverage As of December 31, 2025, we had total outstanding borrowings of approximately $1.15 billion. Under the provisions of the 1940 Act, we are permitted to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. As of December 31, 2025, our asset coverage ratio was 186.3%. We believe our relatively low level of leverage provides us with a competitive advantage as proceeds from our investments are available for reinvestment as opposed to being consumed by debt repayment. We may increase our relative level of debt in the future. However, we do not currently anticipate operating with a substantial amount of debt relative to our total assets. Proprietary Sourcing and Origination We believe that SLR Capital Partners’ senior investment professionals’ longstanding relationships with financial sponsors, commercial and investment banks, management teams and other financial intermediaries provide us with a strong pipeline of proprietary origination opportunities. We expect to continue leveraging the relationships Mr. Gross established while sourcing and originating investments at Apollo Investment Corporation as well as the financial sponsor relationships Mr. Spohler developed while he was a co-head of CIBC World Markets’ U.S. Leveraged Finance Group. Versatile Transaction Structuring and Flexibility of Capital We believe SLR Capital Partners’ senior investment team’s broad experience and ability to draw upon its extensive experience enable us to identify, assess and structure investments successfully across all levels of a company’s capital structure and to manage potential risk and return at all stages of the economic cycle. The attempt to manage risk does not imply low risk or no risk. While we are subject to significant regulation as a BDC, we are not subject to many of the regulatory limitations that govern traditional lending institutions such as banks. As a result, we believe that we can be more flexible than such lending institutions in selecting and structuring investments, adjusting investment criteria, transaction structures and, in some cases, the types of securities in which we invest. Emphasis on Achieving Strong Risk-Adjusted Returns SLR Capital Partners uses a structured investment and risk management process that emphasizes research and analysis. SLR Capital Partners seeks to build our portfolio on a “bottom-up” basis, choosing and sizing individual positions based on their relative risk/reward profiles as a function of the associated downside risk, volatility, correlation with the existing portfolio and liquidity. At the same time, SLR Capital Partners takes into consideration a variety of factors in managing our portfolio and imposes portfolio-based risk constraints promoting a more diverse portfolio of investments and limiting issuer and industry concentration. We do not pursue short-term origination targets. We believe this approach enables us to build an attractive investment portfolio that meets our return and value criteria over the long term. We believe it is critical to conduct extensive due diligence on investment targets. In evaluating new investments we, through SLR Capital Partners, conduct a rigorous due diligence process. Dedication of Resources to Industries with Substantial Information Flow We dedicate our investing resources to industries characterized by strong cash flow and in which SLR Capital Partners’ investment professionals have deep investment experience. As a result of their investment experience, Messrs. Gross and Spohler, together with SLR Capital Partners’ other senior investment professionals, have long-term relationships with management consultants and management teams in the industries we target, as well as substantial information concerning those industries. Longer Investment Horizon Unlike private equity and venture capital funds, we will not be subject to standard periodic capital return requirements. Such requirements typically stipulate that the capital of these funds, together with any capital gains on such invested funds, can only be invested once and must be returned to investors after a pre-agreed time period. We believe that our flexibility to make investments with a long-term view and without the capital return requirements of traditional private investment vehicles provides us with the opportunity to generate favorable returns relative to the risks of our invested capital and enables us to be a better long-term partner for our portfolio companies.
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Table of Contents 5 Investments The Company seeks to create a diverse portfolio that includes senior secured loans, and to a lesser extent unsecured loans and equity securities by investing approximately $5 million to $100 million of capital, on average, in the securities of leveraged companies, including middle-market companies. We expect that this investment size will vary with the size of our capital base and/or for strategic initiatives. Structurally, unsecured loans usually rank subordinate in priority of payment to senior debt, such as senior bank debt. As such, other creditors may rank senior to us in the event of insolvency. However, unsecured loans rank senior to common and preferred equity in a borrower’s capital structure. Due to its higher risk profile and often less restrictive covenants as compared to senior loans, unsecured loans generally earn a higher return than senior secured loans. In addition to senior secured loans and unsecured loans, we may invest a portion of our portfolio in opportunistic investments, which are not our primary focus, but are intended to enhance our returns to our investors. These investments may include direct investments in public companies that are not thinly traded and securities of leveraged companies located in select countries outside of the United States. The securities that we invest in are typically rated below investment grade. Securities rated below investment grade are speculative and are often referred to as “leveraged loans,” “high yield” or “junk” securities, and may be considered “high risk” compared to debt instruments that are rated investment grade. In addition, some of our debt investments will not fully amortize during their lifetime, which means that a borrower may be unable to payoff its debt due to bankruptcy or other reasons and therefore we may write-off such debt investment prior to its scheduled maturity. Upon such an occurrence, we may realize a loss or a substantial amount of unpaid principal and interest due upon maturity. We may invest up to 30% of our total assets in such opportunistic investments, including loans issued by non- U.S. issuers, subject to compliance with our regulatory obligations as a BDC under the 1940 Act. We have and will continue to borrow funds to make investments. As a result, we will be exposed to the risks of leverage, which may be considered a speculative investment technique. The use of leverage magnifies the potential for loss on amounts invested and therefore increases the risks associated with investing in our securities. In addition, the costs associated with our borrowings, including any increase in management fees payable to our investment adviser, SLR Capital Partners, will be borne by our common stockholders. Moreover, we may acquire investments in the secondary market and, in analyzing such investments, we will seek to employ a substantially similar analytical process as we use for our primary investments. We may utilize instruments such as forward contracts, currency options and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates and market interest rates. Hedging against a decline in the values of our portfolio positions does not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions decline. However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions may also limit the opportunity for gain if the values of the underlying portfolio positions should increase. It may not be possible to hedge against an exchange rate or interest rate fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at an acceptable price. Moreover, for a variety of reasons, we may not seek to establish a perfect correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a result of factors not related to currency fluctuations. Our principal focus is to provide senior secured loans to leveraged companies in a variety of industries. We generally seek to target companies that generate positive cash flows and/or have substantial assets that secure our loans. We generally seek to invest in companies from the broad variety of industries in which our investment adviser has direct experience.
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Table of Contents 6 The following is a representative list of the industries in which we may invest: • Aerospace & Defense • Air Freight & Logistics • Asset Management & Custody Banks • Automobiles • Automobile Components • Biotechnology • Broadline Retail • Building Products • Capital Markets • Chemicals • Commercial Services & Supplies • Communications Equipment • Construction & Engineering • Consumer Finance • Consumer Staples Distribution & Retail • Containers & Packaging • Distributors • Diversified Consumer Services • Diversified Real Estate Activities • Diversified Telecommunications Services • Education Services • Energy Equipment & Services • Fertilizers & Agricultural Chemicals • Financial Services • Food Products • Footwear • Ground Transportation • Health Care Equipment & Supplies • Health Care Facilities • Health Care Providers & Services • Health Care Technology • Hotels, Restaurants & Leisure • Household & Personal Products • Industrial Conglomerates • Insurance • Internet & Catalog Retail • Internet Software & Services • IT Services • Leisure Equipment & Products • Life Sciences Tools & Services • Machinery • Media • Metals & Mining • Multiline Retail • Multi-Sector Holdings • Oil, Gas & Consumable Fuels • Packaged Foods & Meats • Paper & Forest Products • Passenger Airlines • Pharmaceuticals • Professional Services • Research & Consulting Services • Software • Specialty Retail • Textiles, Apparel & Luxury Goods • Thrifts & Mortgage Finance • Trading Companies & Distributors • Transportation Infrastructure • Water Utilities • Wireless Telecommunications Services We may also invest in other industries if we are presented with attractive opportunities. We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds. We may also participate in negotiated co-investment transactions with certain affiliates, each of whose investment adviser is SLR Capital Partners, or an investment adviser controlling, controlled by or under common control with SLR Capital Partners and is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), in a
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Table of Contents 7 manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to the conditions of the most recent exemptive order obtained from the Securities and Exchange Commission (the “SEC”) on June 13, 2017 (the “Exemptive Order”). Pursuant to the Exemptive Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of our stockholders and is consistent with our then-current investment objective and strategies. At December 31, 2025, our portfolio consisted of 100 portfolio companies and was invested 21.5% in cash flow senior secured loans, 47.1% in asset-based senior secured loans / SLR Credit Solutions (“SLR Credit”) / SLR Healthcare ABL (“SLR Healthcare”)/ SLR Business Credit, 20.4% in equipment senior secured financings / SLR Equipment Finance (“SLR Equipment”) / Kingsbridge Holdings, LLC (“KBH”) and 11.0% in life science senior secured loans, in each case, measured at fair value. We expect that our portfolio will continue to include primarily senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. In addition, we also expect to invest a portion of our portfolio in opportunistic investments, which are not our primary focus, but are intended to enhance our risk-adjusted returns to stockholders. These investments may include, but are not limited to, securities of public companies and debt and equity securities of companies located outside of the United States. While our primary investment objective is to maximize current income and capital appreciation through investments in U.S. senior and subordinated loans, other debt securities and equity, we may also invest a portion of the portfolio in opportunistic investments, including foreign securities. Listed below are our top ten portfolio companies and industries based on their fair value and represented as a percentage of total assets as of December 31, 2025 and December 31, 2024: TOP TEN PORTFOLIO COMPANIES AND INDUSTRIES AS OF DECEMBER 31, 2025 Portfolio Company % ofTotal Assets Kingsbridge Holdings, LLC* 12.2% SLR Credit Solutions* 10.9% SLR Business Credit* 5.2% SLR Equipment Finance* 4.0% Enhanced Capital Group, LLC 2.1% SLR Senior Lending Program LLC* 1.9% Ardelyx, Inc. 1.8% Insight Investments Holdings, LLC 1.7% Lyneer Staffing Solutions, LLC 1.7% SLR Healthcare ABL* 1.5% * Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Industry % ofTotal Assets Financial Services 24.9% Multi-Sector Holdings 16.2% Health Care Providers & Services 7.8% Health Care Equipment & Supplies 4.4% Capital Markets 4.1% Professional Services 3.7% Diversified Consumer Services 3.3% Pharmaceuticals 3.3% Asset Management & Custody Banks 1.9% Life Sciences Tools & Services 1.7%
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Table of Contents 8 TOP TEN PORTFOLIO COMPANIES AND INDUSTRIES AS OF DECEMBER 31, 2024 Portfolio Company % ofTotal Assets SLR Credit Solutions* 11.8% Kingsbridge Holdings, LLC* 10.3% SLR Business Credit* 5.1% SLR Equipment Finance* 4.5% SLR Senior Lending Program LLC* 2.0% Outset Medical, Inc. 1.9% Enhanced Capital Group, LLC 1.8% SLR Healthcare ABL* 1.7% Ardelyx, Inc. 1.6% Cerapedics, Inc. 1.5% * Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Industry % ofTotal Assets Diversified Financial Services 22.7% Multi-Sector Holdings 15.2% Health Care Providers & Services 11.1% Health Care Equipment & Supplies 5.5% Pharmaceuticals 3.1% Diversified Consumer Services 2.7% Capital Markets 2.6% Media 2.5% Software 2.3% Asset Management 2.0% Set forth below is a brief description of each portfolio company in which we have made an investment that represents 5% or greater of our total assets as of December 31, 2025. SLR Credit Solutions We invested in SLR Credit as an independent commercial finance company that provides primarily senior secured loans for both asset-based and cash flow financings to middle-market companies. Its team of experienced, responsive professionals has underwritten, closed and managed more than $20 billion in secured debt commitments across a wide range of industries. As of December 31, 2025, SLR Credit had 33 funded commitments to 26 different issuers with total funded loans of approximately $404.1 million on total assets of $420.7 million. SLR Credit’s competitors include other specialty finance companies and small banks. As with most finance companies, SLR Credit is exposed to interest rate risk, which it mostly mitigates by issuing loans with floating rates. Kingsbridge Holdings, LLC On November 3, 2020, the Company acquired 87.5% of the equity securities of KBH through KBH Topco LLC (“KBHT”), a Delaware corporation. KBH is a residual focused independent mid-ticket lessor of equipment primarily to U.S. large corporate companies. The Company invested $216.6 million to effect the transaction, of which $136.6 million was invested to acquire 87.5% of KBHT’s equity and $80.0 million in KBH’s debt. The existing management team of KBH committed to continuing to lead KBH after the transaction. The Company currently owns 93.75% of KBHT equity and the KBH management team owns the remaining 6.25% of KBHT’s equity. As of December 31, 2025, KBHT had total assets of $940.3 million. SLR Business Credit The Company acquired SLR Business Credit in connection with the Mergers on April 1, 2022. SLR Business Credit is a leading asset-backed lending commercial finance company that provides asset-backed financings to U.S. based small-to-medium-sized businesses in a variety of industries. SLR Business Credit currently manages a highly diverse portfolio of directly-originated and
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Table of Contents underwritten senior-secured commitments. As of December 31, 2025, the portfolio totaled approximately $920.4 million of commitments, of which $535.2 million were funded, on total assets of $574.1 million. Investment Selection Process SLR Capital Partners is committed to and utilizes a value-oriented investment philosophy with a focus on the preservation of capital and a commitment to managing downside exposure. Portfolio Company Characteristics. We have identified several criteria that we believe are important in identifying and investing in prospective portfolio companies. These criteria provide general guidelines for our investment decisions; however, not all of these criteria will be met by each prospective portfolio company in which we choose to invest. Stable Earnings and Strong Free Cash Flow. We seek to invest in companies that have demonstrated stable earnings through economic cycles. We target companies that can de-lever through consistent generation of cash flows rather than relying solely on growth to service and repay our loans. Value Orientation. Our investment philosophy places a premium on fundamental analysis from an investor’s perspective and has a distinct value orientation. We focus on companies in which we can invest at relatively low multiples of operating cash flow and that are profitable at the time of investment on an operating cash flow basis. Value of Assets. The prospective value of the assets, if any, that collateralize the loans in which we invest, is an important factor in our credit analysis. Our analysis emphasizes both tangible assets, such as accounts receivable, inventory, equipment and real estate, and intangible assets, such as intellectual property, customer lists, networks and databases. In some of our transactions, the company’s fundings may be derived from a borrowing base determined by the value of the company’s assets. Strong Competitive Position in Industry. We seek to invest in target companies that have developed leading market positions within their respective markets and are well positioned to capitalize on growth opportunities. We seek companies that demonstrate significant competitive advantages versus their competitors, which we believe should help to protect their market position and profitability. Diversified Customer and Supplier Base. We seek to invest in businesses that have a diversified customer and supplier base. We believe that companies with a diversified customer and supplier base are generally better able to endure economic downturns, industry consolidation, changing business preferences and other factors that may negatively impact their customers, suppliers and competitors. Exit Strategy. We predominantly invest in companies that provide multiple alternatives for an eventual exit. We look for opportunities that provide an exit typically within three years of the initial capital commitment. We generally seek companies that we believe will have or provide a steady stream of cash flow to repay our loans and reinvest in their respective businesses. We believe that such internally generated cash flow, leading to the payment of our interest, and the repayment of our principal, represents a key means by which we will be able to exit from our investments over time. In addition, we also seek to invest in companies whose business models and expected future cash flows or cash positions offer attractive exit possibilities. These companies include candidates for strategic acquisition by other industry participants and companies that may repay our investments through an initial public offering of common stock or another capital market transaction. We underwrite our investments on a held-to-maturity basis, but expensive capital is often repaid prior to stated maturity. Experienced and Committed Management. We generally require that portfolio companies have an experienced management team. We also require portfolio companies have in place proper incentives to induce management to succeed and to act in concert with our interests as investors, including having significant equity interests. Strong Sponsorship. We generally aim to invest alongside other sophisticated investors. We typically seek to partner with successful financial sponsors who have historically generated high returns. We believe that investing in these sponsors’ portfolio companies enables us to benefit from their direct involvement and due diligence. SLR Capital Partners’ investment team works in concert with sponsors to proactively manage investment opportunities by acting as a partner throughout the investment process. We actively focus on the middle-market financial sponsor community, with a
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Table of Contents particular focus on the upper-end of the middle-market (sponsors with equity funds of $500 million to $5 billion). We favor such sponsors because they typically: • buy larger companies with strong business franchises; • invest significant amounts of equity in their portfolio companies; • value flexibility and creativity in structuring their transactions; • possess longer track records over multiple investment funds; • have a deeper management bench; • have better ability to withstand downturns; and • possess the ability to support portfolio companies with additional capital. We divide our coverage of these sponsors among our more senior investment professionals, who are responsible for day-to-day interaction with financial sponsors. Our coverage approach aims to act proactively, consider all investments in the capital structure, provide quick feedback, deliver on commitments, and are constructive throughout the life cycle of an investment. Due Diligence Our “private equity” approach to credit investing typically incorporates extensive in-depth due diligence often alongside the private equity sponsor. In conducting due diligence, we will use publicly available information as well as information from relationships with former and current management teams, consultants, competitors and investment bankers. We believe that our due diligence methodology allows us to screen a high volume of potential investment opportunities on a consistent and thorough basis. Our due diligence typically includes: • review of historical and prospective financial information; • review and valuation of assets; • research relating to the company’s management, industry, markets, products and services and competitors; • on-site visits; • discussions with management, employees, customers or vendors of the potential portfolio company; • review of senior loan documents; and • background investigations. We also expect to evaluate the private equity sponsor making the investment. Further, due to SLR Capital Partners’ considerable repeat business with sponsors, we have direct experience with the management teams of many sponsors. A private equity sponsor is typically the controlling stockholder upon completion of an investment and as such is considered critical to the success of the investment. The equity sponsor is evaluated along several key criteria, including: • investment track record; • industry experience; • capacity and willingness to provide additional financial support to the company through additional capital contributions, if necessary; and • reference checks. Throughout the due diligence process, a deal team is in constant dialogue with the management team of the company in which we are considering investing to ensure that any concerns are addressed as early as possible through the process and that unsuitable investments are filtered out before considerable time has been invested. Upon the completion of due diligence and a decision to proceed with an investment in a company, the investment professionals leading the investment present the investment opportunity to SLR Capital Partners’ investment committee, which then determines whether to pursue the potential investment. Additional due diligence with respect to any investment may be conducted on our behalf by attorneys and independent accountants prior to the closing of the investment, as well as other outside advisers, as appropriate.
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Table of Contents 11 The Investment Committee All new investments are required to be approved by a consensus of the investment committee of SLR Capital Partners, which is led by Messrs. Gross and Spohler. The members of SLR Capital Partners’ investment committee receive no compensation from us. Such members may be employees or partners of SLR Capital Partners and may receive compensation or profit distributions from SLR Capital Partners. Investment Structure Once we determine that a prospective portfolio company is suitable for investment, we work with the management of that company and its other capital providers, including senior, junior and equity capital providers, to structure an investment. We negotiate among these parties to agree on how our investment is expected to perform relative to the other capital in the portfolio company’s capital structure. The Company seeks to create a diverse portfolio that includes senior secured loans and to a lesser extent, unsecured loans and equity securities by investing approximately $5 million to $100 million of capital. With respect to our senior secured loans, we seek to obtain security interests in the assets of our portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first or second priority liens on the assets of a portfolio company. We structure our unsecured loans primarily subordinated loans that provide for relatively high, fixed or floating interest rates that provide us with significant current interest income. These loans typically have interest-only payments in the early years, with amortization of principal, if any, deferred to the later years of the unsecured loans. In some cases, we may enter into loans that, by their terms, convert into equity or additional debt securities or defer payments of interest for the first few years after our investment. Also, in some cases, our unsecured loans may be collateralized by a subordinated lien on some or all of the assets of the borrower. Typically, our senior secured and unsecured loans have final maturities of five to ten years. However, we expect that our portfolio companies often may repay these loans early, generally within three to four years from the date of initial investment. In some cases and when available, we seek to structure these loans with prepayment premiums to capture foregone interest. In the case of our senior secured and unsecured loan investments, we tailor the terms of the investment to the facts and circumstances of the transaction and the prospective portfolio company, negotiating a structure that protects our rights and manages our risk while creating incentives for the portfolio company to achieve its business plan and improve its profitability. For example, in addition to seeking a senior or fulcrum position in the capital structure of our portfolio companies, we will seek to limit the downside potential of our investments by: • requiring a total return on our investments (including both interest and potential capital appreciation) that compensates us for credit risk; • incorporating “put” rights and call protection into the investment structure; and • negotiating covenants in connection with our investments that afford our portfolio companies as much flexibility in managing their businesses as possible, consistent with preservation of our capital. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control provisions and board rights, including either observation or participation rights. Our investments may include equity features, such as warrants or options to buy a minority interest in the portfolio company. Any warrants we receive with our debt securities generally require only a nominal cost to exercise, and thus, as a portfolio company appreciates in value, we may achieve additional investment return from this equity interest. We may structure the warrants to provide provisions protecting our rights as a minority interest holder, as well as puts, or rights to sell such securities back to the company, upon the occurrence of specified events. In many cases, we also obtain registration rights in connection with these equity securities, which may include demand and “piggyback” registration rights. In addition, we may from time to time make direct equity investments in portfolio companies. We generally seek to hold most of our investments to maturity or repayment, but will sell our investments earlier, including if a liquidity event takes place such as the sale or recapitalization of a portfolio company.
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Table of Contents 12 Ongoing Relationships with Portfolio Companies SLR Capital Partners monitors our portfolio companies on an ongoing basis. SLR Capital Partners monitors the financial trends of each portfolio company to determine if it is meeting its business plan and to assess the appropriate course of action for each company. SLR Capital Partners has several methods of evaluating and monitoring the performance and fair value of our investments, which include the following: • Assessment of success in adhering to each portfolio company’s business plan and compliance with covenants;
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Table of Contents 13 • Periodic and regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor, to discuss financial position, requirements and accomplishments; • Comparisons to other SLR Capital Partners invested portfolio companies in the industry, if any; • Attendance at and participation in board meetings; and • Review of monthly and quarterly financial statements and financial projections for portfolio companies. In addition to various risk management and monitoring tools, SLR Capital Partners also uses an investment rating system to characterize and monitor our expected level of returns on each investment in our portfolio. We use an investment rating scale of 1 to 4. The following is a description of the conditions associated with each investment rating: InvestmentRating Summary Description 1 Involves the least amount of risk in our portfolio, the portfolio company is performing above expectations, and the trends and risk factors are generally favorable (including a potential exit). 2 Risk that is similar to the risk at the time of origination, the portfolio company is performing as expected, and the risk factors are neutral to favorable; all new investments are initially assessed a grade of 2. 3 The portfolio company is performing below expectations, may be out of compliance with debt covenants, and requires procedures for closer monitoring. 4 The investment is performing well below expectations and is not anticipated to be repaid in full. SLR Capital Partners monitors and, when appropriate, changes the investment ratings assigned to each investment in our portfolio. As of December 31, 2025 and December 31, 2024 the weighted average investment rating on the fair market value of our portfolio was a 2. In connection with our valuation process, SLR Capital Partners reviews these investment ratings on a quarterly basis. Valuation Procedures Rule 2a-5 under the 1940 Act addresses the fair valuation of fund investments. The rule sets forth requirements for good faith determinations of fair value, as well as for the performance of fair value determinations, including related oversight and reporting obligations. The rule also defines “readily available market quotations” for purposes of the definition of “value” under the 1940 Act, and the SEC noted that this definition will apply in all contexts under the 1940 Act. The Company complies with Rule 2a-5’s valuation requirements. We conduct the valuation of our assets, pursuant to which our net asset value is determined, at all times consistent with U.S. generally accepted accounting principles (“GAAP”) and the 1940 Act. The Board will (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule 2a-5 under the 1940 Act; and (6) maintain recordkeeping requirements under Rule 2a-5. It is anticipated that in respect of many of the Company’s assets, readily available market quotations will not be obtainable and that such assets will be valued at fair value. A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation. Under procedures established by the Board, we value investments, including certain senior secured debt, subordinated debt and other debt securities with maturities greater than 60 days, for which market quotations are readily available and deemed to represent fair value under GAAP, at such market quotations (unless they are deemed not to represent fair value). A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation. We attempt to obtain market
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Table of Contents quotations from at least two brokers or dealers (if available, otherwise from a principal market maker or a primary market dealer or other independent pricing service). We utilize mid-market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are deemed not to represent fair value, we may utilize independent third-party valuation firms to assist us in determining the fair value of material assets. Accordingly, such investments go through our multi-step valuation process as described below. In each such case, independent valuation firms, that may from time to time be engaged by the Board, consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations. Debt investments with maturities of 60 days or less shall each be valued at cost plus accreted discount, or minus amortized premium, which is expected to approximate fair value, unless such valuation, in the judgment of the Investment Adviser, does not represent fair value, in which case such investments shall be valued at fair value as determined in good faith by or under the direction of the Board. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board. Such determination of fair values involves subjective judgments and estimates. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value under GAAP, the Board has approved a multi-step valuation process each quarter, as described below: (1) our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment; (2) preliminary valuation conclusions are then documented and discussed with senior management of the Investment Adviser; (3) independent valuation firms engaged by the Board conduct independent appraisals and review the Investment Adviser’s preliminary valuations and make their own independent assessment for all material assets; (4) the audit committee of the Board reviews the preliminary valuation of the Investment Adviser and that of the independent valuation firm and responds to the valuation recommendation of the independent valuation firm, if any, to reflect any comments; and (5) the Board discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm, if any, and the audit committee. The valuation principles set forth above may be modified from time to time, in whole or in part, as determined by the Board in its sole discretion. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. However, in accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation approaches to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. For the fiscal year ended December 31, 2025, there was no change to the Company’s valuation approaches or techniques and the nature of the related inputs considered in the valuation process. ASC Topic 820 classifies the inputs used to measure these fair values into the following hierarchy: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the Company at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices. Level 3: Unobservable inputs for the asset or liability. In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The exercise of judgment is based in part on our knowledge of the asset class and our prior experience.
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Table of Contents 15 Competition Our primary competitors provide financing to middle-market companies and include other BDCs, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity funds. Additionally, alternative investment vehicles, such as hedge funds, frequently invest in middle-market companies. As a result, competition for investment opportunities at middle-market companies can be intense. While many middle-market companies were previously able to raise senior debt financing through traditional large financial institutions, we believe this approach to financing will become more difficult as implementation of U.S. and international financial reforms limits the capacity of large financial institutions to hold non-investment grade leveraged loans on their balance sheets. We believe that many of these financial institutions have de-emphasized their service and product offerings to middle-market companies in particular. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC. We use the industry information available to Messrs. Gross and Spohler and the other investment professionals of SLR Capital Partners to assess investment risks and determine appropriate pricing for our investments in portfolio companies. In addition, we believe that the relationships of Messrs. Gross and Spohler and the other investment professionals of our Investment Adviser enable us to learn about, and compete effectively for, financing opportunities with attractive leveraged companies in the industries in which we seek to invest. Staffing We do not currently have any employees. Mr. Gross, our Chairman and Co-Chief Executive Officer and President, and Mr. Spohler, our Co-Chief Executive Officer and Chief Operating Officer and board member, are managing members and senior investment professionals of, and have financial and controlling interests in, SLR Capital Partners. In addition, Mr. Shiraz Kajee, our Chief Financial Officer and Treasurer, serves as the Chief Financial Officer for SLR Capital Partners. Guy Talarico, our Chief Compliance Officer and Secretary, serves as the Chief Compliance Officer and General Counsel for SLR Capital Partners. Our day-to-day investment operations are managed by SLR Capital Partners. Based upon its needs, SLR Capital Partners may hire additional investment professionals. In addition, we will reimburse SLR Capital Management for the allocable portion of overhead and other expenses incurred by it in performing its obligations under the Administration Agreement, including rent, and the allocable portion of the cost of the Company’s Chief Compliance Officer and Chief Financial Officer and their respective staffs. Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example: • pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended (the “1934 Act”), our Co-Chief Executive Officers and Chief Financial Officer must certify as to the accuracy of the financial statements contained in our periodic reports; • pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures; • pursuant to Rule 13a-15 of the 1934 Act, our management is required to prepare an annual report regarding its assessment of our internal control over financial reporting and to obtain an audit of the effectiveness of internal control over financial reporting performed by our independent registered public accounting firm; and • pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the 1934 Act, our periodic reports must disclose whether there were significant changes in our internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. The Sarbanes-Oxley Act of 2002 requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act of 2002 and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act of 2002 and will take actions necessary to ensure that we are in compliance therewith.
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Table of Contents Business Development Company Regulations A BDC is regulated by the 1940 Act. A BDC must be organized in the United States for the purpose of investing in or lending to primarily private companies and making significant managerial assistance available to those investments that constitute qualifying assets (as discussed below). A BDC may use capital provided by public stockholders and from other sources to make long-term, private investments in businesses. A BDC provides stockholders the ability to retain the liquidity of a publicly-traded stock while sharing in the possible benefits, if any, of investing in primarily privately owned companies. We may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC unless authorized by vote of a majority of our outstanding voting securities, as required by the 1940 Act. A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (a) 67% or more of such company’s voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of such company. We do not anticipate any substantial change in the nature of our business. As with other companies regulated by the 1940 Act, a BDC must adhere to certain substantive regulatory requirements. A majority of our directors must be persons who are not interested persons, as that term is defined in the 1940 Act. Additionally, we are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect the BDC. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to us or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office. As a BDC, we are required to meet an asset coverage ratio, reflecting the value of our total assets to our total senior securities, which include all of our borrowings and any preferred stock we may issue in the future, of at least 150%. We may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our directors who are not interested persons and, in some cases, prior approval by the SEC. We are generally not able to issue and sell our common stock at a price below net asset value per share without annual stockholder approval. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then- current net asset value of our common stock if the Board determines that such sale is in our best interests and the best interests of our stockholders, and our stockholders approve such sale. At this time, we do not have stockholder approval for such sales. As a BDC, we were substantially limited in our ability to co-invest in privately negotiated transactions with affiliated funds until we obtained an exemptive order from the SEC. The Exemptive Order permits us to participate in negotiated co-investment transactions with certain affiliates, each of whose investment adviser is an investment adviser that controls, is controlled by or is under common control with SLR Capital Partners and is registered as an investment adviser under the Advisers Act, in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to the conditions to the Exemptive Order. If we are unable to rely on the Exemptive Order for a particular opportunity, such opportunity will be allocated first to the entity whose investment strategy is the most consistent with the opportunity being allocated, and second, if the terms of the opportunity are consistent with more than one entity’s investment strategy, on an alternating basis. Although our investment professionals will endeavor to allocate investment opportunities in a fair and equitable manner, we and our common stockholders could be adversely affected to the extent investment opportunities are allocated among us and other investment vehicles managed or sponsored by, or affiliated with, our executive officers, directors and members of our investment adviser. We will be periodically examined by the SEC for compliance with the federal securities laws, including the 1940 Act. Qualifying Assets Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. The principal categories of qualifying assets relevant to our business are the following: (1) Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer which: (a) is organized under the laws of, and has its principal place of business in, the United States; (b) is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and
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Table of Contents 17 (c) satisfies any of the following: i. does not have any class of securities that is traded on a national securities exchange; ii. has a class of securities listed on a national securities exchange, but has an aggregate market value of outstanding voting and non-voting common equity of less than $250 million; iii. is controlled by a BDC or a group of companies including a BDC and the BDC has an affiliated person who is a director of the eligible portfolio company; or iv. is a small and solvent company having total assets of not more than $4.0 million and capital and surplus of not less than $2.0 million. (2) Securities of any eligible portfolio company which we control, which, as defined by the 1940 Act, is presumed to exist where a BDC beneficially owns more than 25% of the outstanding voting securities of the portfolio company. (3) Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities, was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements. (4) Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company. (5) Securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities. (6) Cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment. (7) Office furniture and equipment, interests in real estate and leasehold improvements and facilities maintained to conduct the business operations of the BDC, deferred organization and operating expenses, and other noninvestment assets necessary and appropriate to its operations as a BDC, including notes of indebtedness of directors, officers, employees, and general partners held by a BDC as payment for securities of such company issued in connection with an executive compensation plan described in Section 57(j) of the 1940 Act. Under Section 55(b) of the 1940 Act, the value of a BDC’s assets shall be determined as of the date of the most recent financial statements filed by such company with the SEC pursuant to Section 13 of the 1934 Act, and shall be determined no less frequently than annually. Significant Managerial Assistance to Portfolio Companies As a BDC, we offer, and must provide upon request, significant managerial assistance to our portfolio companies that constitute qualifying assets. This assistance could involve, among other things, monitoring the operations of our portfolio companies, participating in board and management meetings, consulting with and advising officers of portfolio companies and providing other organizational and financial guidance. We may also receive fees for these services. SLR Capital Management provides such managerial assistance, if any, on our behalf to portfolio companies that request this assistance. Temporary Investments Pending investment in other types of “qualifying assets,” as described above, our investments may consist of cash, cash equivalents, U.S. government securities or high-quality investment grade debt securities maturing in one year or less from the time of investment, which we refer to, collectively, as temporary investments, so that 70% of our assets are qualifying assets. Typically, we will invest in U.S. Treasury bills or in repurchase agreements, provided that such repurchase agreements are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price that is greater than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, if more than 25% of our total assets constitute repurchase agreements from a single counterparty, we would not meet the diversification tests in order to qualify as a RIC for U.S. federal income tax purposes. Thus, we do not intend to enter into repurchase agreements with a single counterparty in excess of this limit. SLR Capital Partners will monitor the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.
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Table of Contents 18 Senior Securities We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock if our asset coverage, as defined in the 1940 Act, is at least equal to 150% immediately after each such issuance. In addition, while certain senior securities remain outstanding, we may be required to make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary purposes without regard to asset coverage. We may borrow money, which would magnify the potential for gain or loss on amounts invested and may increase the risk of investing in us. Code of Ethics We and SLR Capital Partners have each adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act and Rule 204A-1 under the Advisers Act, respectively, that establishes procedures for personal investments and restricts certain transactions by our personnel. Our codes of ethics generally do not permit investments by our employees in securities that may be purchased or held by us. Each code of ethics is available on the EDGAR Database on the SEC’s Internet site at http://www.sec.gov. You may also obtain copies of the codes of ethics, after paying a duplicating fee, by electronic request at the following Email address: publicinfo@sec.gov. Compliance Policies and Procedures We and our Investment Adviser have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws. We are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and to designate a chief compliance officer to be responsible for their administration. Guy Talarico currently serves as our Chief Compliance Officer. Proxy Voting Policies and Procedures We have delegated our proxy voting responsibility to the Investment Adviser. A summary of the Proxy Voting Policies and Procedures of the Investment Adviser are set forth below. The guidelines are reviewed periodically by the Investment Adviser and our independent directors, and, accordingly, are subject to change. As an investment adviser registered under the Advisers Act, SLR Capital Partners has a fiduciary duty to act solely in the best interests of its clients. As part of this duty, it recognizes that it must vote securities held by its clients in a timely manner free of conflicts of interest. These policies and procedures for voting proxies for investment advisory clients are intended to comply with Section 206 of, and Rule 206(4)-6 under, the Advisers Act. Our investment adviser votes proxies relating to our portfolio securities in the best interest of our stockholders. SLR Capital Partners reviews on a case-by-case basis each proposal submitted for a proxy vote to determine its impact on our investments. Although it generally votes against proposals that may have a negative impact on our investments, it may vote for such a proposal if there exists compelling long-term reasons to do so. The proxy voting decisions of our Investment Adviser are made by the senior investment professionals who are responsible for monitoring each of our investments. To ensure that our vote is not the product of a conflict of interest, it requires that: (i) anyone involved in the decision making process disclose to a managing member of SLR Capital Partners any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote, and (ii) employees involved in the decision making process or vote administration are prohibited from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties. You may obtain information about how we voted proxies by making a written request for proxy voting information to: SLR Capital Partners, LLC, 500 Park Avenue, New York, NY 10022. Privacy Principles We endeavor to maintain the privacy of our recordholders and to safeguard their non-public personal information. The following information is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we may share such information with select other parties.
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Table of Contents 19 Generally, we will not receive any non-public personal information about the recordholders of the common stock of the Company, although certain of our recordholders’ non-public information may become available to us. The non-public personal information that we may receive falls into the following categories: • Information we receive from recordholders, whether we receive it orally, in writing or electronically. This includes recordholders’ communications to us concerning their investment; • Information about recordholders’ transaction history with us; and • Other general information that we may obtain about recordholders, such as demographic and contact information such as addresses. We disclose non-public person information about recordholders: • to our affiliates (such as SLR Capital Partners and SLR Capital Management) and their employees for everyday business purposes; • to our service providers (such as our accountants, attorneys, custodians, transfer agent, underwriter and proxy solicitors) and their employees as is necessary to service recordholder accounts or otherwise provide the applicable service; • to comply with court orders, subpoenas, lawful discovery requests, or other legal or regulatory requirements; or • as allowed or required by applicable law or regulation. When the Company shares non-public recordholder personal information referred to above, the information is made available for limited business purposes and under controlled circumstances designed to protect our recordholders’ privacy. The Company does not permit use of recordholder information for any non-business or marketing purpose, nor does the Company permit third parties to rent, sell, trade or otherwise release or disclose information to any other party. The Company’s service providers, such as SLR Capital Partners, SLR Capital Management, and its transfer agent, are required to maintain physical, electronic, and procedural safeguards to protect recordholder non-public personal information; to prevent unauthorized access or use; and to dispose of such information when it is no longer required. Personnel of affiliates may access recordholder information only for business purposes. The degree of access is based on the sensitivity of the information and on personnel need for the information to service a recordholder’s account or comply with legal requirements. If a recordholder ceases to be a recordholder, we will adhere to the privacy policies and practices as described above. We may choose to modify our privacy policies at any time. Before we do so, we will notify recordholders and provide a description of our privacy policy. Taxation as a Regulated Investment Company As a BDC, we elected to be treated, and intend to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any ordinary income or capital gains that we timely distribute to our stockholders as dividends. To continue to qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, to qualify for RIC tax treatment, we must distribute to our stockholders, for each taxable year, at least 90% of our “investment company taxable income,” which generally is our ordinary income plus the excess of our realized net short-term capital gains over our realized net long-term capital losses (the “Annual Distribution Requirement”). If we qualify as a RIC and satisfy the Annual Distribution Requirement, then we will not be subject to U.S. federal income tax on the portion of our investment company taxable income and net capital gain (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) we distribute (or are deemed to distribute) to stockholders. We will be subject to U.S. federal income tax at the regular corporate rates on any ordinary income or capital gain not distributed (or deemed not distributed) to our stockholders. We will be subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (1) 98% of our ordinary income for each calendar year, (2) 98.2% of our capital gain net income for the one-year period ending October 31 in that calendar year and (3) any ordinary income and net capital gains that we recognized in preceding years, but were not distributed during such years, and on which we paid no U.S. federal income tax (the “Excise Tax Avoidance Requirement”).
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Table of Contents 20 In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things: • at all times during each taxable year, have in effect an election to be treated as a BDC under the 1940 Act; • derive in each taxable year at least 90% of our gross income from (a) dividends, interest, payments with respect to certain securities loans, gains from the sale of stock or other securities or currencies, or other income derived with respect to our business of investing in such stock, securities or currencies and (b) net income derived from an interest in a “qualified publicly traded partnership;” and • diversify our holdings so that at the end of each quarter of the taxable year: • at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and • no more than 25% of the value of our assets is invested in (i) the securities, other than U.S. government securities or securities of other RICs, of one issuer, (ii) the securities of two or more issuers that are controlled, as determined under applicable tax rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) the securities of one or more “qualified publicly traded partnerships.” We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue discount (such as debt instruments with payment-in-kind (“PIK”) income or, in certain cases, increasing interest rates or debt instruments issued with warrants), we must include in income each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. Because any original issue discount accrued will be included in our investment company taxable income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we will not have received any corresponding cash amount. Because we may use debt financing, we will be subject to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the Annual Distribution Requirement. If we are unable to obtain cash from other sources or are otherwise limited in our ability to make distributions, we could fail to qualify for RIC tax treatment and thus become subject to corporate-level U.S. federal income tax. Certain of our investment practices may be subject to special and complex U.S. federal income tax provisions that may, among other things: (i) disallow, suspend or otherwise limit the allowance of certain losses or deductions; (ii) convert lower taxed long-term capital gain into higher taxed short-term capital gain or ordinary income; (iii) convert an ordinary loss or a deduction into a capital loss (the deductibility of which is more limited); (iv) cause us to recognize income or gain without a corresponding receipt of cash; (v) adversely affect the time as to when a purchase or sale of securities is deemed to occur; (vi) adversely alter the characterization of certain complex financial transactions; and (vii) produce income that will not be qualifying income for purposes of the 90% gross income test described above. We will monitor our transactions and may make certain tax elections in order to mitigate the potential adverse effect of these provisions. Gain or loss realized by us from the sale or exchange of warrants acquired by us as well as any loss attributable to the lapse of such warrants generally will be treated as capital gain or loss. The treatment of such gain or loss as long-term or short-term will depend on how long we have held a particular warrant. Upon the exercise of a warrant acquired by us, our tax basis in the stock purchased under the warrant will equal the sum of the amount paid for the warrant plus the strike price paid on the exercise of the warrant. Failure to Qualify as a Regulated Investment Company If we were unable to qualify for treatment as a RIC, we would be subject to U.S. federal income tax on all of our taxable income at regular corporate rates. We would not be able to deduct distributions to stockholders, nor would distributions be required. Such distributions would be taxable to our stockholders as dividends and, provided certain holding period and other requirements were met, could qualify for treatment as “qualified dividend income” in the hands of non-corporate stockholders (and thus eligible for the current 20% maximum rate) to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, corporate distributees would be eligible for the dividends received deduction. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s tax basis, and any remaining distributions would be treated as a capital gain. To requalify as a RIC in a subsequent taxable year, we would be required to satisfy the RIC qualification requirements for that year and dispose of any earnings and profits from any year in which we failed to qualify as a RIC. Subject to a limited exception applicable to RICs that qualified as such under Subchapter M of the Code for at least one year
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Table of Contents 21 prior to disqualification and that requalify as a RIC no later than the second year following the non-qualifying year, we could be subject to tax on any unrealized net built-in gains in the assets held by us during the period in which we failed to qualify as a RIC that are recognized within the subsequent five years, unless we made a special election to pay corporate-level U.S. federal income tax on such built-in gain at the time of our requalification as a RIC. Investment Advisory Fees Pursuant to the Advisory Agreement, we have agreed to pay SLR Capital Partners a fee for investment advisory and management services consisting of two components — a base management fee and a performance-based incentive fee. On April 1, 2022, in connection with the consummation of the Mergers, we entered into a letter agreement (the “Letter Agreement”) pursuant to which the Investment Adviser voluntarily agreed to a permanent 25 basis point reduction of the annual base management fee rate payable by us to the Investment Adviser pursuant to the Advisory Agreement. Following the Letter Agreement, the base management fee is now determined by taking the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters calculated at an annual rate of 1.50% on gross assets up to 200% of the Company’s total net assets as of the immediately preceding quarter end and 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter end. For purposes of computing the base management fee, gross assets exclude temporary assets acquired at the end of each fiscal quarter for purposes of preserving investment flexibility in the next fiscal quarter. Temporary assets include, but are not limited to, U.S. treasury bills, other short-term U.S. government or government agency securities, repurchase agreements or cash borrowings. The performance-based incentive fee has two parts, as follows: one is calculated and payable quarterly in arrears based on our pre- incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, expenses payable under the Administration Agreement to SLR Capital Management, and any interest expense and dividend paid on any issued and outstanding preferred stock, but excluding the performance-based incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay in kind income and zero coupon securities), accrued income that we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, computed net of all realized capital losses or unrealized capital appreciation or depreciation. Pre- incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, is compared to a hurdle of 1.75% per quarter (7.00% annualized). Our net investment income used to calculate this part of the incentive fee is also included in the amount of our gross assets used to calculate the 1.50% base management fee. We pay SLR Capital Partners an incentive fee with respect to our pre-incentive fee net investment income in each calendar quarter as follows: • no performance-based incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the hurdle of 1.75%; • 100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle but is less than 2.1875% in any calendar quarter (8.75% annualized). We refer to this portion of our pre-incentive fee net investment income (which exceeds the hurdle but is less than 2.1875%) as the “catch-up.” The “catch-up” is meant to provide our investment adviser with 20% of our pre-incentive fee net investment income as if a hurdle did not apply if this net investment income exceeds 2.1875% in any calendar quarter; and • 20% of the amount of our pre-incentive fee net investment income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to SLR Capital Partners (once the hurdle is reached and the catch-up is achieved, 20% of all pre- incentive fee investment income thereafter is allocated to SLR Capital Partners).
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Table of Contents 22 The following is a graphical representation of the calculation of the income-related portion of the performance-based incentive fee: Quarterly Incentive Fee Based on Net Investment Income Pre-incentive fee net investment income (expressed as a percentage of the value of net assets) Percentage of pre-incentive fee net investment income allocated to SLR Capital Partners These calculations are appropriately pro-rated for any period of less than three months. You should be aware that a rise in the general level of interest rates can be expected to lead to higher interest rates applicable to our debt investments. Accordingly, an increase in interest rates would make it easier for us to meet or exceed the incentive fee hurdle rate and may result in a substantial increase of the amount of incentive fees payable to our investment adviser with respect to pre-incentive fee net investment income. The second part of the incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Advisory Agreement, as of the termination date), and equals 20% of our realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees with respect to each of the investments in our portfolio. Examples of Quarterly Incentive Fee Calculation Example 1: Income Related Portion of Incentive Fee (*): Alternative 1: Assumptions Investment income (including interest, dividends, fees, etc.) = 1.25% Hurdle rate(1) = 1.75% Management fee(2) = 0.375% Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.20% Pre-incentive fee net investment income (investment income – (management fee + other expenses)) = 0.675% Pre-incentive net investment income does not exceed hurdle rate, therefore there is no incentive fee. Alternative 2: Assumptions Investment income (including interest, dividends, fees, etc.) = 2.70% Hurdle rate(1) = 1.75% Management fee(2) = 0.375% Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.20% Pre-incentive fee net investment income (investment income – (management fee + other expenses)) = 2.125% (*) The hypothetical amount of pre-incentive fee net investment income shown is based on a percentage of total net assets. Incentive fee = 100% × pre-incentive fee net investment income, subject to the “catch-up”(4) = 100% × (2.125% – 1.75%) = 0.375%
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Table of Contents 23 Alternative 3: Assumptions Investment income (including interest, dividends, fees, etc.) = 3.00% Hurdle rate(1) = 1.75% Management fee(2) = 0.375% Other expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.20% Pre-incentive fee net investment income (investment income – (management fee + other expenses)) = 2.425% Incentive fee = 20% × pre-incentive fee net investment income, subject to “catch-up”(4) Incentive fee = 100% × “catch-up” + (20% × (pre-incentive fee net investment income – 2.1875%)) Catch-up = 2.1875% – 1.75% = 0.4375% Incentive fee = (100% × 0.4375%) + (20% × (2.425% – 2.1875%)) = 0.4375% + (20% × 0.2375%) = 0.4375% + 0.0475% = 0.485% Represents 7% annualized hurdle rate. Represents 1.50% annualized management fee. Excludes organizational and offering expenses. The “catch-up” provision is intended to provide our investment adviser with an incentive fee of 20% on all of our pre-incentive fee net investment income as if a hurdle rate did not apply when our net investment income exceeds 2.1875% in any calendar quarter. Example 2: Capital Gains Portion of Incentive Fee: Alternative 1: Assumptions • Year 1: $20 million investment made in Company A (“Investment A”), and $30 million investment made in Company B (“Investment B”) • Year 2: Investment A sold for $50 million and fair market value (“FMV”) of Investment B was determined to be $32 million • Year 3: FMV of Investment B determined to be $25 million • Year 4: Investment B sold for $31 million The capital gains portion of the incentive fee would be: • Year 1: None • Year 2: Capital gains incentive fee of $6 million ($30 million realized capital gains on the sale of Investment A multiplied by 20%) • Year 3: None $5 million (20% multiplied by ($30 million cumulative capital gains less $5 million cumulative capital depreciation)) less $6 million (previous capital gains fee paid in Year 2) • Year 4: Capital gains incentive fee of $200,000 $6.2 million ($31 million cumulative realized capital gains multiplied by 20%) less $6 million (capital gains fee taken in Year 2) Alternative 2: Assumptions • Year 1: $20 million investment made in Company A (“Investment A”), $30 million investment made in Company B (“Investment B”) and $25 million investment made in Company C (“Investment C”) (1) (2) (3) (4)
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Table of Contents 24 • Year 2: Investment A sold for $50 million, FMV of Investment B determined to be $25 million and FMV of Investment C determined to be $25 million • Year 3: FMV of Investment B determined to be $27 million and Investment C sold for $30 million • Year 4: FMV of Investment B determined to be $24 million • Year 5: Investment B sold for $20 million The capital gains incentive fee, if any, would be: • Year 1: None • Year 2: $5 million capital gains incentive fee 20% multiplied by $25 million ($30 million realized capital gains on Investment A less unrealized capital depreciation on Investment B) • Year 3: $1.4 million capital gains incentive fee(1) $6.4 million (20% multiplied by $32 million ($35 million cumulative realized capital gains less $3 million unrealized capital depreciation)) less $5 million capital gains fee received in Year 2 • Year 4: None • Year 5: None $5 million (20% multiplied by $25 million (cumulative realized capital gains of $35 million less realized capital losses of $10 million)) less $6.4 million cumulative capital gains fee paid in Year 2 and Year 3 As illustrated in Year 3 of Alternative 2 above, if the Company were to be wound up on a date other than December 31 of any year, the Company may have paid aggregate capital gain incentive fees that are more than the amount of such fees that would be payable if the Company had been wound up on December 31 of such year. Payment of Our Expenses All investment professionals of the Investment Adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by SLR Capital Partners. We bear all other costs and expenses of our operations and transactions, including (without limitation): • the cost of our organization and public offerings; • the cost of calculating our net asset value, including the cost of any third-party valuation services; • the cost of effecting sales and repurchases of our shares and other securities; • interest payable on debt, if any, to finance our investments; • fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence reviews of prospective investments and advisory fees; • transfer agent and custodial fees; • fees and expenses associated with marketing efforts; • federal and state registration fees and any stock exchange listing fees; • federal, state and local taxes; • independent directors’ fees and expenses; • brokerage commissions; • fidelity bond, directors and officers errors and omissions liability insurance and other insurance premiums; • direct costs and expenses of administration, including printing, mailing, long distance telephone and staff; (1)
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Table of Contents 25 • fees and expenses associated with independent audits and outside legal costs; • costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws; and • all other expenses incurred by either SLR Capital Management or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer and our Chief Financial Officer and their respective staffs. Available Information The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of that site is (http://www.sec.gov). Our internet address is www.slrinvestmentcorp.com. We make available free of charge on our website our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Information contained on our website is not incorporated by reference into this annual report on Form 10-K, and you should not consider information contained on our website to be part of this annual report on Form 10-K. Summary Risk Factors Risks Relating to Our Investments • We operate in a highly competitive market for investment opportunities. • Our investments are very risky and highly speculative. • The lack of liquidity in our investments may make it difficult for us to dispose of our investments at a favorable price, which may adversely affect our ability to meet our investment objectives. • Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies performs poorly or defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry. • Economic sanction laws in the United States and other jurisdictions may prohibit us and our affiliates from transacting with certain countries, individuals and companies. • If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending and investment activities, our net asset value could decrease and our level of distributions and liquidity could be affected adversely. • We may suffer a loss if a portfolio company defaults on a loan and the underlying collateral is not sufficient. • Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity. • We may be exposed to higher risks with respect to our investments that include original issue discount or PIK interest. Risks Relating to an Investment in Our Securities • Our shares may trade at a substantial discount from net asset value and may continue to do so over the long term. • Our common stock price may be volatile and may decrease substantially. • Our business and operation could be negatively affected if we become subject to any securities litigation or stockholder activism, which could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price.
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Table of Contents 26 • There is a risk that investors in our equity securities may not receive distributions consistent with historical levels or at all or that our distributions may not grow over time and a portion of our distributions may be a return of capital. • We may reduce or defer our dividends and choose to incur U.S. federal excise tax in order to preserve cash and maintain flexibility. • We may choose to pay distributions in our own common stock, in which case our stockholders may be required to pay U.S. federal income taxes in excess of the cash distributions they receive. • Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock. • The net asset value per share of our common stock may be diluted if we issue or sell shares of our common stock at prices below the then current net asset value per share of our common stock or securities to subscribe for or convertible into shares of our common stock. • To the extent we use debt or preferred stock to finance our investments, changes in interest rates will affect our cost of capital and net investment income. • Our stock repurchase program could affect the price of our common stock and increase volatility and may be suspended or terminated at any time, which may result in a decrease in the trading price of our common stock. Risks Relating to Our Business and Structure • We are dependent upon SLR Capital Partners’ key personnel for our future success. • Our business model depends to a significant extent upon strong referral relationships with financial sponsors, and the inability of the senior investment professionals of our Investment Adviser to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. • Our financial condition and results of operations will depend on SLR Capital Partners’ ability to manage our future growth effectively by identifying, investing in and monitoring companies that meet our investment criteria. • We may need to raise additional capital to grow because we must distribute most of our income. • Any failure on our part to maintain our status as a BDC would reduce our operating flexibility and we may be limited in our investment choices as a BDC. • Regulations governing our operation as a BDC affect our ability to, and the way in which we will, raise additional capital. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage. • We have and will continue to borrow money, which would magnify the potential for loss on amounts invested and may increase the risk of investing in us. • It is likely that the terms of any current or future long-term or revolving credit or warehouse facility we may enter into in the future could constrain our ability to grow our business. • There will be uncertainty as to the value of our portfolio investments, which may impact our net asset value. • There are significant potential conflicts of interest, including SLR Capital Partners’ management of other investment funds such as SCP Private Credit Income BDC LLC, SLR HC BDC LLC, and SLR Private Credit BDC II LLC, which could impact our investment returns, and an investment in SLR Investment Corp. is not an investment in SCP Private Credit Income BDC LLC, SLR HC BDC LLC, or SLR Private Credit BDC II LLC. • We may be obligated to pay our Investment Adviser incentive compensation even if we incur a loss. • Our incentive fee may induce SLR Capital Partners to pursue speculative investments. • We may become subject to corporate-level U.S. federal income tax if we are unable to qualify and maintain our qualification for tax treatment as a regulated investment company under Subchapter M of the Code. • The failure in cyber security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning, could impair our ability to conduct business effectively. • Any inability or perceived inability to adequately address privacy concerns, or comply with applicable laws and regulations, even if unfounded, may result in adverse consequences to the Company.
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Table of Contents 27 • Our business is subject to increasingly complex corporate governance, public disclosure and accounting requirements that could adversely affect our business and financial results.
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Table of Contents Item 1A. Risk Factors. Before you invest in our securities, you should be aware of various risks, including those described below. You should carefully consider these risk factors, together with all of the other information included in this annual report on Form 10-K before you decide whether to make an investment in our securities. The risks described in this document and set out below are not the only risks we face. If any of the following events occur, our business, financial condition and results of operations could be materially adversely affected. In such case, our net asset value and the trading price of our common stock could decline or the value of our preferred stock, debt securities, subscription rights or warrants may decline, and you may lose all or part of your investment. Risks Relating to Our Investments We operate in a highly competitive market for investment opportunities. A number of entities compete with us to make the types of investments that we target in leveraged companies. We compete with other BDCs, public and private funds, commercial and investment banks, commercial financing companies and, to the extent they provide an alternative form of financing, private equity funds. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments than we have, which could allow them to consider a wider variety of investments and establish more relationships and offer better pricing and a more flexible structure than we are able to do. Furthermore, many of our potential competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC. If we are unable to source attractive investments, we may hold a greater percentage of our assets in cash and cash equivalents than anticipated, which could impact potential returns on our portfolio. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objective. Participants in our industry compete on several factors, including price, flexibility in transaction structure, customer service, reputation, market knowledge and speed in decision-making. We do not seek to compete primarily based on the interest rates we will offer, and we believe that some of our competitors may make loans with interest rates that will be comparable to or lower than the rates we offer. We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. However, if we match our competitors’ pricing, terms and structure, we may experience decreased net interest income and increased risk of credit loss. Our investments are very risky and highly speculative. We invest primarily in leveraged middle-market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. Senior Secured Loans. When we make a senior secured term loan investment in a portfolio company, we generally take a security interest in the available assets of the portfolio company, including the equity interests of its subsidiaries, which we expect to help mitigate the risk that we will not be repaid. However, there is a risk that the collateral securing our loans may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital, and, in some circumstances, our lien could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company’s financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies. Unsecured Loans and Preferred Securities. Our unsecured and preferred investments are generally subordinated to senior loans and are generally unsecured. As such, other creditors may rank senior to us in the event of an insolvency. This may result in an above average amount of risk and loss of principal. Equity Investments. When we invest in senior secured loans, unitranche loans, unsecured loans or preferred securities, we may acquire common equity securities as well. In certain other unique circumstances we may also make equity investments in businesses that make senior loans and/or leases, such as our investments in Kingsbridge Holdings, LLC, SLR Credit Solutions, SLR Equipment Finance, SLR Business Credit and SLR Healthcare ABL. In addition, we may invest directly in the equity securities of portfolio companies without limitation as to market capitalization. For instance, we may invest in thinly traded companies, the prices of which may be subject to erratic market movement. Our goal is ultimately to exit such equity interests and realize gains upon our disposition of such interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly,
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Table of Contents 29 we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. In addition, investing in middle-market companies involves a number of significant risks, including: • these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees we may have obtained in connection with our investment; • they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns; • they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us; • they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. In addition, our executive officers, directors and our Investment Adviser may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies; and • they may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity. The lack of liquidity in our investments may make it difficult for us to dispose of our investments at a favorable price, which may adversely affect our ability to meet our investment objectives. We generally make investments in private companies. We invest and expect to continue investing in companies whose securities have no established trading market and whose securities are and will be subject to legal and other restrictions on resale or whose securities are and will be less liquid than are publicly-traded securities. Investments purchased by us that are liquid at the time of purchase may subsequently become illiquid due to events relating to the issuer of the investments, market events, economic conditions or investor perceptions. The illiquidity of our investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded our investments. As a result, we do not expect to achieve liquidity in our investments in the near-term. However, to maintain our qualification as a BDC and as a RIC, we may have to dispose of investments if we do not satisfy one or more of the applicable criteria under the respective regulatory frameworks. Domestic and foreign markets are complex and interrelated, so that events in one sector of the world markets or economy, or in one geographical region, can reverberate and have materially negative consequences for other markets, economic or regional sectors in a manner that may not be foreseen and which may negatively impact the liquidity of our investments and materially harm our business. In addition, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public information regarding such portfolio company. Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies performs poorly or defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry. Our portfolio may be concentrated in a limited number of portfolio companies and industries. The Company is classified as a non- diversified investment company within the meaning of the 1940 Act, which means that it is not limited by the 1940 Act with respect to the proportion of its assets that it could invest in a single portfolio company. To the extent that we assume large positions in the securities of a small number of portfolio companies, our net asset value could fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the portfolio company. We could also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. As of December 31, 2025, our investments in Kingsbridge Holdings, LLC, SLR Credit Solutions and SLR Business Credit comprised 12.2%, 10.9% and 5.2%, respectively, of our total assets and our investments in the financial services, multi-sector holdings and health care providers & services industries comprised 24.9%, 16.2% and 7.8%, respectively, of our total assets. Beyond the asset diversification requirements associated with our qualification as a RIC under Subchapter M of the Code, we do not have fixed guidelines for diversification, and while we are not targeting any specific industries, our investments may be concentrated in relatively few industries or portfolio companies. As a result, the aggregate returns we realize may be significantly adversely affected if a small number of investments
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Table of Contents 30 perform poorly or if we need to write down the value of any one investment. Additionally, a downturn in any particular industry in which we are invested could also significantly impact the aggregate returns we realize.
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Table of Contents 31 Our investments in securities rated below investment grade are speculative in nature and are subject to additional risk factors such as the increased possibility of default, illiquidity of the security, and changes in value based on changes in interest rates. The securities that we invest in are typically rated below investment grade. Securities rated below investment grade are speculative and are often referred to as “leveraged loans,” “high yield” or “junk” securities, and may be considered “high risk” compared to debt instruments that are rated investment grade. High yield securities are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal in accordance with the terms of the obligations and involve major risk exposure to adverse conditions. In addition, high yield securities generally offer a higher current yield than that available from higher grade issues, but typically involve greater risk. These securities are especially sensitive to adverse changes in general economic conditions, to changes in the financial condition of their issuers and to price fluctuation in response to changes in interest rates. During periods of economic downturn or rising interest rates, issuers of below investment grade instruments may experience financial stress that could adversely affect their ability to make payments of principal and interest and increase the possibility of default. The secondary market for high yield securities may not be as liquid as the secondary market for more highly rated securities. In addition, many of our debt investments will not fully amortize during their lifetime, which means that a borrower may be unable to pay off its debt due to bankruptcy or other reasons and therefore we may write-off such debt investment prior to its scheduled maturity. Upon such an occurrence, we may realize a loss or a substantial amount of unpaid principal and interest due upon maturity. Price declines and illiquidity in the corporate debt markets have adversely affected, and may continue to adversely affect, the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation. Any unrealized depreciation that we experience on our loan portfolio may be an indication of future realized losses, which could reduce our income available for distribution and could adversely affect our ability to service our outstanding borrowings. As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by or under the direction of our board of directors. Decreases in the market values or fair values of our investments are recorded as unrealized depreciation. Any unrealized depreciation in our loan portfolio could be an indication of a portfolio company’s inability to meet its repayment obligations to us with respect to the affected loans. This could result in realized losses in the future and ultimately in reductions of our income available for distribution in future periods and could materially adversely affect our ability to service our outstanding borrowings. Depending on market conditions, we could incur substantial losses in future periods, which could further reduce our net asset value and have a material adverse impact on our business, financial condition and results of operations. Economic sanction laws in the United States and other jurisdictions may prohibit us and our affiliates from transacting with certain countries, individuals and companies. Economic sanction laws in the United States and other jurisdictions may prohibit us or our affiliates from transacting with certain countries, individuals and companies. In the United States, the U.S. Department of the Treasury’s Office of Foreign Assets Control administers and enforces laws, executive orders and regulations establishing U.S. economic and trade sanctions, which prohibit, among other things, transactions with, and the provision of services to, certain non-U.S. countries, territories, entities and individuals. These types of sanctions may significantly restrict or completely prohibit investment activities in certain jurisdictions, and if we, our portfolio companies or other issuers in which we invest were to violate any such laws or regulations, we may face significant legal and monetary penalties. The Foreign Corrupt Practices Act, or FCPA, and other anti-corruption laws and regulations, as well as anti-boycott regulations, may also apply to and restrict our activities, our portfolio companies and other issuers of our investments. If an issuer or we were to violate any such laws or regulations, such issuer or we may face significant legal and monetary penalties. The U.S. government has indicated that it is particularly focused on FCPA enforcement, which may increase the risk that an issuer or us becomes the subject of such actual or threatened enforcement. In addition, certain commentators have suggested that private investment firms and the funds that they manage may face increased scrutiny and/or liability with respect to the activities of their underlying portfolio companies. As such, a violation of the FCPA or other applicable regulations by us or an issuer of our portfolio investments could have a material adverse effect on us. We are committed to complying with the FCPA and other anti-corruption laws and regulations, as well as anti-boycott regulations, to which it is subject. As a result, we may be adversely affected because of our unwillingness to enter into transactions that violate any such laws or regulations.
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Table of Contents If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending and investment activities, our net asset value could decrease and our level of distributions and liquidity could be affected adversely. Our ability to secure additional financing and satisfy our financial obligations under indebtedness outstanding from time to time will depend upon our future operating performance, which is subject to the prevailing general economic and credit market conditions, including interest rate levels and the availability of credit generally, and financial, business and other factors, many of which are beyond our control. The worsening of current economic and capital market conditions could have a material adverse effect on our ability to secure financing on favorable terms, if at all. If we are unable to obtain debt capital, then our equity investors will not benefit from the potential for increased returns on equity resulting from leverage to the extent that our investment strategy is successful and we may be limited in our ability to make new commitments or fundings to our portfolio companies. We may suffer a loss if a portfolio company defaults on a loan and the underlying collateral is not sufficient. In the event of a default by a portfolio company on a secured loan, we will only have recourse to the assets collateralizing the loan. If the underlying collateral value is less than the loan amount, we will suffer a loss. In addition, we sometimes make loans that are unsecured, which are subject to the risk that other lenders may be directly secured by the assets of the portfolio company. In the event of a default, those collateralized lenders would have priority over us with respect to the proceeds of a sale of the underlying assets. In cases described above, we may lack control over the underlying asset collateralizing our loan or the underlying assets of the portfolio company prior to a default, and as a result the value of the collateral may be reduced by acts or omissions by owners or managers of the assets. In the event of bankruptcy of a portfolio company, we may not have full recourse to its assets in order to satisfy our loan, or our loan may be subject to equitable subordination. In addition, certain of our loans are subordinate to other debt of the portfolio company. If a portfolio company defaults on our loan or on debt senior to our loan, or in the event of a portfolio company bankruptcy, our loan will be satisfied only after the senior debt receives payment. Where debt senior to our loan exists, the presence of inter-creditor arrangements may limit our ability to amend our loan documents, assign our loans, accept prepayments, exercise our remedies (through “standstill” periods) and control decisions made in bankruptcy proceedings relating to the portfolio company. Bankruptcy and portfolio company litigation can significantly increase collection losses and the time needed for us to acquire the underlying collateral in the event of a default, during which time the collateral may decline in value, causing us to suffer further losses. If the value of the collateral underlying our loan declines or interest rates increase during the term of our loan, a portfolio company may not be able to obtain the necessary funds to repay our loan at maturity through refinancing. Decreasing collateral value and/or periods of increasing interest rates may hinder a portfolio company’s ability to refinance our loan because the underlying collateral cannot satisfy the debt service coverage requirements necessary to obtain new financing. If a borrower is unable to repay our loan at maturity, we could suffer a loss which may adversely impact our financial performance. The business, financial condition and results of operations of our portfolio companies could be adversely affected by worldwide economic conditions, as well as political and economic conditions in the countries in which they conduct business. The business and operating results of our portfolio companies may be impacted by worldwide economic conditions. Any deterioration of general economic conditions may lead to significant declines in corporate earnings or loan performance, and the ability of corporate borrowers to service their debt, any of which could trigger a period of global economic slowdown, and have an adverse impact on our performance and financial results, and the value and the liquidity of our investments. In an economic downturn, we could have non- performing assets or an increase in non-performing assets, and we would anticipate that the value of our portfolio would decrease during these periods. For instance, concerns of economic slowdown in China and other emerging markets and signs of deteriorating sovereign debt conditions in Europe could lead to disruption and instability in the global financial markets. The significant debt in the United States and European countries is expected to hinder growth in those countries for the foreseeable future. In the future, the U.S. government may not be able to meet its debt payments unless the federal debt ceiling is raised. If legislation increasing the debt ceiling is not enacted, as needed, and the debt ceiling is reached, the U.S. federal government may stop or delay making payments on its obligations. Any default by the U.S. government on its obligations or any prolonged U.S. government shutdown could negatively impact the U.S. economy and our portfolio companies. Multiple factors relating to the international operations of some of our portfolio companies and to particular countries in which they operate could negatively impact their business, financial condition and results of operations. In addition, concerns over the United States’ debt ceiling and budget-deficit have driven downgrades by rating agencies to the U.S. government’s credit rating. Downgrades by rating agencies to the U.S. government’s credit rating or concerns about its credit and deficit levels in general could cause interest rates and borrowing costs to rise, which may negatively impact both the perception of credit risk associated with our debt portfolio and our ability to access the debt markets on
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Table of Contents favorable terms. In addition, a decreased U.S. government credit rating, any default by the U.S. government on its obligations, or any prolonged U.S. government shutdown could create broader financial turmoil and uncertainty, which may weigh heavily on our financial performance and the value of our common stock. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns or a recession in the U.S. Some of the products of our portfolio companies are developed, manufactured, assembled, tested or marketed outside the United States. Any conflict or uncertainty in these countries, including due to natural disasters, public health concerns, political unrest or safety concerns, could harm their business, financial condition and results of operations. In addition, if the government of any country in which their products are developed, manufactured or sold sets technical or regulatory standards for products developed or manufactured in or imported into their country that are not widely shared, it may lead some of their customers to suspend imports of their products into that country, require manufacturers or developers in that country to manufacture or develop products with different technical or regulatory standards and disrupt cross-border manufacturing, marketing or business relationships which, in each case, could harm their businesses. Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio. Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow- on” investments, in order to: (i) increase or maintain in whole or in part our ownership percentage; (ii) exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or (iii) attempt to preserve or enhance the value of our investment. We may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments. We will have the discretion to make any follow-on investments, subject to the availability of capital resources. The failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our concentration of risk, either because we prefer other opportunities or because we are subject to BDC requirements that would prevent such follow-on investments or the desire to maintain our RIC tax treatment. Where we do not hold controlling equity interests in our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments. Although we hold controlling equity positions in some of our portfolio companies, we do not currently hold controlling equity positions in the majority of our portfolio companies. As a result, we are subject to the risk that a portfolio company in which we do not have a controlling interest may make business decisions with which we disagree, and that the management and/or stockholders of such portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity of the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company and may therefore suffer a decrease in the value of our investments. Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity. We are subject to the risk that the investments we make in our portfolio companies may be prepaid prior to maturity. When this occurs, we may reduce our borrowings outstanding or reinvest these proceeds in temporary investments, pending their future investment in new portfolio companies. These temporary investments, if any, will typically have substantially lower yields than the debt investment being prepaid and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at lower yields than the debt investment that was prepaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our common stock. We may choose to waive or defer enforcement of covenants in the debt securities held in our portfolio, which may cause us to lose all or part of our investment in these companies. We structure the debt investments in our portfolio companies to include business and financial covenants placing affirmative and negative obligations on the operation of the company’s business and its financial condition. However, from time to time we may elect to waive breaches of these covenants, including our right to payment, or waive or defer enforcement of remedies, such as acceleration of obligations or foreclosure on collateral, depending upon the financial condition and prospects of the particular portfolio company. These actions may reduce the likelihood of our receiving the full amount of future payments of interest or principal and be accompanied by a deterioration in the value of the underlying collateral as many of these
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Table of Contents 34 companies may have limited financial resources, may be unable to meet future obligations and may go bankrupt. This could negatively impact our ability to pay distributions, could adversely affect our results of operation and financial condition and cause the loss of all or part of your investment. In addition, some of the loans in which we may invest may be “covenant-lite” loans. We use the term “covenant-lite” loans to refer generally to loans that do not have a complete set of financial maintenance covenants. Generally, “covenant-lite” loans provide borrower companies more freedom to negatively impact lenders because their covenants are incurrence-based, which means they are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower’s financial condition. Accordingly, to the extent we invest in “covenant-lite” loans, we may have fewer rights against a borrower and may have a greater risk of loss on such investments as compared to investments in or exposure to loans with financial maintenance covenants. Our loans could be subject to equitable subordination by a court which would increase our risk of loss with respect to such loans. Courts may apply the doctrine of equitable subordination to subordinate the claim or lien of a lender against a borrower to claims or liens of other creditors of the borrower, when the lender or its affiliates is found to have engaged in unfair, inequitable or fraudulent conduct. The courts have also applied the doctrine of equitable subordination when a lender or its affiliates is found to have exerted inappropriate control over a client, including control resulting from the ownership of equity interests in a client. We have made direct equity investments or received warrants in connection with loans. Payments on one or more of our loans, particularly a loan to a client in which we may also hold an equity interest, may be subject to claims of equitable subordination. If we were deemed to have the ability to control or otherwise exercise influence over the business and affairs of one or more of our portfolio companies resulting in economic hardship to other creditors of that company, this control or influence may constitute grounds for equitable subordination and a court may treat one or more of our loans as if it were unsecured or common equity in the portfolio company. In that case, if the portfolio company were to liquidate, we would be entitled to repayment of our loan on a pro-rata basis with other unsecured debt or, if the effect of subordination was to place us at the level of common equity, then on an equal basis with other holders of the portfolio company’s common equity only after all of its obligations relating to its debt and preferred securities had been satisfied. An investment strategy focused primarily on privately held companies presents certain challenges, including the lack of available information about these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns. We invest primarily in privately held companies. Generally, little public information exists about these companies, and we are required to rely on the ability of SLR Capital Partners’ investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investments. Also, smaller privately held companies frequently have less diverse product lines and smaller market presence than larger competitors. These factors could adversely affect our investment returns as compared to companies investing primarily in the securities of public companies. Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies. We invest primarily in leveraged middle-market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. Our portfolio companies typically have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt securities in which we invest. By their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before the dates on which we are entitled to receive payments in respect of the debt securities in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution in respect of our investment. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt securities in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company. Any such limitations on the ability of our portfolio companies to make principal or interest payments to us, if at all, may reduce our net asset value and have a negative material adverse impact to our business, financial condition and results of operation.
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Table of Contents 35 Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments. Our investment strategy contemplates potential investments in debt securities of foreign companies, including emerging market companies. Investing in foreign companies may expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility. These risks may be more pronounced for portfolio companies located or operating primarily in emerging markets, whose economies, markets and legal systems may be less developed. Although most of our investments will be U.S. dollar-denominated, any investments denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation, and political developments. We may employ hedging techniques to minimize these risks, but we can offer no assurance that we will, in fact, hedge currency risk, or that if we do, such strategies will be effective. We may expose ourselves to risks if we engage in hedging transactions. If we engage in hedging transactions, we may expose ourselves to risks associated with such transactions. We may utilize instruments such as forward contracts, currency options and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates and market interest rates. Hedging against a decline in the values of our portfolio positions does not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions decline. However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions may also limit the opportunity for gain if the values of the underlying portfolio positions should increase. It may not be possible to hedge against an exchange rate or interest rate fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at an acceptable price. The success of our hedging transactions will depend on our ability to correctly predict movements in currencies and interest rates. Therefore, while we may enter into such transactions to seek to reduce currency exchange rate and interest rate risks, unanticipated changes in currency exchange rates or interest rates may result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions being hedged may vary. Moreover, for a variety of reasons, we may not seek to establish a perfect correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a result of factors not related to currency fluctuations. To the extent we engage in hedging transactions, we also face the risk that counterparties to the derivative instruments we hold may default, which may expose us to unexpected losses from positions where we believed that our risk had been appropriately hedged. Our Investment Adviser may not be able to achieve the same or similar returns as those achieved for other funds it currently manages or by our senior investment professionals while they were employed at prior positions. Our Investment Adviser manages other funds, including other BDCs, and may manage other entities in the future. The track record and achievements of these other entities are not necessarily indicative of future results that will be achieved by our Investment Adviser because these other entities may have investment objectives and strategies that differ from ours. Additionally, although in the past our senior investment professionals held senior positions at a number of investment firms, their track record and achievements are not necessarily indicative of future results that will be achieved by our Investment Adviser. In their roles at such other firms, our senior investment professionals were part of investment teams, and they were not solely responsible for generating investment ideas. In addition, such investment teams arrived at investment decisions by consensus.
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Table of Contents We may be exposed to higher risks with respect to our investments that include original issue discount or PIK interest. Zero-coupon bonds pay interest only at maturity rather than at intervals during the life of the security. Deferred interest rate bonds generally provide for a period of delay before the regular payment of interest begins. PIK securities are debt obligations that pay “interest” in the form of other debt obligations, instead of in cash. Each of these instruments is normally issued and traded at a deep discount from face value. Zero-coupon bonds, deferred interest rate bonds and PIKs allow an issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater credit risk than bonds that pay interest currently or in cash. In addition, such investments experience greater volatility in market value due to changes in interest rates than debt obligations that provide for regular payments of interest. To the extent we invest in original issue discount instruments, including PIK, zero coupon bonds, and debt securities with attached warrants, investors will be exposed to the risks associated with the inclusion of such non-cash income in taxable and accounting income prior to receipt of cash, including the following: • The interest payments deferred on a PIK loan are subject to the risk that the borrower may default when the deferred payments are due in cash at the maturity of the loan; • The interest rates on PIK loans are higher to reflect the time-value of money on deferred interest payments and the higher credit risk of borrowers who may need to defer interest payments; • PIK instruments may have unreliable valuations because the accruals require judgments about ultimate collectability of the deferred payments and the value of the associated collateral; • An election to defer PIK income payments by adding them to principal increases our gross assets and, thus, increases future base fees to the Investment Adviser and, because income payments will then be payable on a larger principal amount, the PIK election also increases the Investment Adviser’s future income incentive fees at a compounding rate; • Market prices of original issue discount instruments are more volatile because they are affected to a greater extent by interest rate changes than instruments that pay interest periodically in cash; • The deferral of interest on a PIK loan increases its loan-to-value ratio, which is a measure of the riskiness of a loan; and • Original issue discount creates the risk of non-refundable cash payments to the Investment Adviser based on non-cash accruals that may never be realized. Risks Relating to an Investment in Our Securities Our shares may trade at a substantial discount from net asset value and may continue to do so over the long term. Shares of BDCs may trade at a market price that is less than the net asset value that is attributable to those shares. The possibility that our shares of common stock will trade at a substantial discount from net asset value over the long term is separate and distinct from the risk that our net asset value will decrease. We cannot predict whether shares of our common stock will trade above, at or below our net asset value in the future. If our common stock trades below its net asset value, we will generally not be able to issue additional shares or sell our common stock at its market price without first obtaining the approval for such issuance from our stockholders and our independent directors. If additional funds are not available to us, we could be forced to curtail or cease our new lending and investment activities, and our net asset value could decrease and our level of distributions could be impacted. Our common stock price may be volatile and may decrease substantially. The trading price of our common stock may fluctuate substantially. The price of our common stock that will prevail in the market may be higher or lower than the price you pay, depending on many factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include, but are not limited to, the following: • price and volume fluctuations in the overall stock market from time to time; • investor demand for our shares; • significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies; • exclusion of our common stock from certain market indices, such as the Russell 2000 Financial Services Index, which could reduce the ability of certain investment funds to own our common stock and put short-term selling pressure on our common stock; • changes in regulatory policies or tax guidelines with respect to RICs or BDCs;
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Table of Contents 37 • failure to qualify as a RIC, or the loss of RIC tax treatment; • any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts; • changes, or perceived changes, in the value of our portfolio investments; • departures of SLR Capital Partners’ key personnel; • operating performance of companies comparable to us; • changes in the prevailing interest rates; • loss of a major funding source; • uncertainty regarding U.S. immigration and work permit policies; • an increase in negative global media coverage relating to the private credit industry; or • general economic conditions and trends and other external factors. Our businesses may be adversely affected by litigation and regulatory proceedings. From time to time, we may be subject to legal actions as well as various regulatory, governmental and law enforcement inquiries, investigations and subpoenas. In any such claims or actions, demands for substantial monetary damages may be asserted against us and may result in financial liability or an adverse effect on our reputation among investors. In addition, any leadership changes or reforms at U.S. federal regulatory agencies with oversight over our industry may impose additional costs or result in other limitations on us. In connection with acquisitions of, and investments in, businesses complementary to our business, we have been and may be in the future subject to securities litigation or stockholder activism in connection with such acquisitions or investments. Securities litigation and stockholder activism, including potential proxy contests, could result in substantial costs and divert management’s and our board of directors’ attention and resources from our business. We may be unable to accurately estimate our exposure to litigation risk when we record balance sheet reserves for probable loss contingencies. As a result, any reserves we establish to cover any settlements or judgments may not be sufficient to cover our actual financial exposure, which may have a material impact on our results of operations or financial condition. In regulatory enforcement matters, claims for disgorgement, the imposition of penalties and the imposition of other remedial sanctions are possible. In recent periods, there has been increased activity by certain activist and other organized groups in opposition to certain investments made by and activities of investment funds. Such groups may contact or otherwise seek to engage with government and regulatory bodies and fund investors, including public pension funds, to criticize or challenge certain investments, which could lead to negative publicity that could harm our or our Investment Adviser’s reputation. In addition, partially as a result of certain high profile defaults and bankruptcies, there has also been increased negative publicity with respect to the private credit industry. Although neither we nor our Investment Adviser have been involved in those particular defaults and bankruptcies, the negative publicity and concerns surrounding the private credit industry generally could in the future harm our or our Investment Adviser’s reputation, adversely affect our borrower or investor relationships and fundraising efforts and create pressure on the trading price of our common stock. There is a risk that investors in our equity securities may not receive distributions consistent with historical levels or at all or that our distributions may not grow over time and a portion of our distributions may be a return of capital. We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this annual report on Form 10-K. If we violate certain covenants under our existing or future credit facilities or other leverage, we may be limited in our ability to make distributions. If we declare a distribution and if more stockholders opt to receive cash distributions rather than participate in our dividend reinvestment plan, we may be forced to sell some of our investments in order to make cash distribution payments. To the extent we make distributions to stockholders that include a return of capital, such portion of the distribution essentially constitutes a return of the stockholder’s investment. Although such return of capital may not be taxable, such distributions would generally decrease a stockholder’s basis in our common stock and may therefore increase such stockholder’s tax liability for capital gains upon the future sale of such stock. A return of capital distribution may cause a stockholder to recognize a capital gain from the sale of our common stock even if the stockholder sells its shares for less than the original purchase price.
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Table of Contents 38 As a RIC, if we do not distribute a certain percentage of our income annually, we may suffer adverse tax consequences, including possibly losing the U.S. federal income tax benefits allowable to RICs. We cannot assure you that you will receive distributions at a particular level or at all. In certain cases, we may recognize income before or without receiving the accompanying cash. Depending on the amount of noncash income, this could result in difficulty satisfying the annual distribution requirement applicable to RICs. Accordingly, we may have to sell some portfolio investments at times it would not consider advantageous, raise additional debt or equity capital or reduce new investments to meet these distribution requirements. We may reduce or defer our dividends and choose to incur U.S. federal excise tax in order to preserve cash and maintain flexibility. In order to maintain our tax treatment as a RIC, we must distribute to stockholders for each taxable year at least 90% of our investment company taxable income (i.e., net ordinary income plus realized net short-term capital gains in excess of realized net long-term capital losses). If we qualify for taxation as a RIC, we generally will not be subject to corporate-level US federal income tax on our investment company taxable income and net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) that we timely distribute to stockholders. We will be subject to a 4% U.S. federal excise tax on undistributed earnings of a RIC unless we distribute each calendar year at least the sum of (i) 98.0% of our ordinary income for the calendar year, (ii) 98.2% of our capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year, and (iii) any ordinary income and net capital gains that were recognized for preceding years, but were not distributed during such years and on which we paid no U.S. federal income tax. Any net operating losses that we incur in periods during which we qualify as a RIC will not offset net capital gains (i.e., net realized long-term capital gains in excess of net realized short-term capital losses) that we are otherwise required to distribute, and we cannot pass such net operating losses through to our stockholders. In addition, net operating losses that we carry over to a taxable year in which we qualify as a RIC normally cannot offset ordinary income or capital gains. Under the Code, we may satisfy certain of our RIC distributions with dividends paid after the end of the current year. In particular, if we pay a distribution in January of the following year that was declared in October, November, or December of the current year and is payable to stockholders of record in the current year, the dividend will be treated for all US federal income tax purposes as if it were paid on December 31 of the current year. In addition, under the Code, we may pay dividends, referred to as “spillover dividends,” that are paid during the following taxable year that will allow us to maintain our qualification for taxation as a RIC and eliminate our liability for corporate-level U.S. federal income tax. Under these spillover dividend procedures, we may defer distribution of income earned during the current year until December of the following year. For example, we may defer distributions of income earned during 2025 until as late as December 31, 2026. If we choose to pay a spillover dividend, we will incur the 4% U.S. federal excise tax on some or all of the distribution. We may take certain actions with respect to the timing and amounts of our distributions in order to preserve cash and maintain flexibility in response to changes in economic conditions. For example, we may reduce our dividends and/or defer dividends to the following taxable year. If we defer our dividends, we may choose to utilize the spillover dividend rules discussed above and incur the 4% U.S. federal excise tax on such amounts. To further preserve cash, we may combine these reductions or deferrals of dividends with one or more distributions that are payable partially in our stock as discussed below under “We may choose to pay distributions in our own stock, in which case our stockholders may be required to pay U.S. federal income taxes in excess of the cash distributions they receive.” We may choose to pay distributions in our own common stock, in which case our stockholders may be required to pay U.S. federal income taxes in excess of the cash distributions they receive. We may distribute taxable distributions that are payable in part in shares of our common stock. Under certain applicable provisions of the Code and published guidance, distributions of a publicly offered RIC that are in cash or in shares of stock at the election of stockholders may be treated as taxable distributions. The Internal Revenue Service has issued a revenue procedure indicating that this rule will apply if the total amount of cash to be distributed is not less than 20% of the total distribution. Under this revenue procedure, if too many stockholders elect to receive their distributions in cash, the cash available for distribution must be allocated among the stockholders electing to receive cash (with the balance of distributions paid in stock). In no event will any stockholder electing to receive cash, receive less than the lesser of (a) the portion of the distribution such stockholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If we decide to make any distributions consistent with this revenue procedure that are payable in part in our stock, taxable stockholders receiving such distributions will be required to include the full amount of the distribution (whether received in cash, our stock, or a combination thereof) as ordinary income (or as long-term capital gain to the extent such distribution is properly reported as a capital gain distribution) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such distributions in excess of any cash received. If a U.S.
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Table of Contents stockholder sells the stock it receives as a distribution in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the distribution, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such distributions, including in respect of all or a portion of such distribution that is payable in stock. If a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on distributions, it may put downward pressure on the trading price of our stock. Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock. As of February 20, 2026, Messrs. Gross and Spohler beneficially owned, either directly or indirectly, approximately 8.5% of our outstanding common stock. Such shares are generally available for resale without restriction, subject to the provisions of Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Sales of substantial amounts of our common stock, or the availability of such common stock for sale, could adversely affect the prevailing market prices for our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of securities should we desire to do so. We may be unable to invest the net proceeds raised from any offerings on acceptable terms or allocate net proceeds from any offering of our securities in ways with which you may not agree. We cannot assure you that we will be able to find enough appropriate investments that meet our investment criteria or that any investment we complete using the proceeds from any securities offering will produce a sufficient return. Until we identify new investment opportunities, we intend to either invest the net proceeds of future offerings in cash equivalents, U.S. government securities and other high-quality debt investments that mature in one year or less or use the net proceeds from such offerings to reduce then-outstanding obligations. We have significant flexibility in investing the net proceeds of any offering of our securities and may use the net proceeds from an offering in ways with which you may not agree or for purposes other than those contemplated at the time of the offering. The net asset value per share of our common stock may be diluted if we issue or sell shares of our common stock at prices below the then current net asset value per share of our common stock or securities to subscribe for or that are convertible into shares of our common stock. We will generally not be able to issue additional shares or sell our common stock at its market price without first obtaining the approval for such issuance from our stockholders and our independent directors. Any offering of our common stock that requires stockholder approval must occur, if at all, within one year after receiving such stockholder approval. At our 2011 Annual Stockholders Meeting, our stockholders authorized us to sell or otherwise issue warrants or securities to subscribe for or convertible into shares of our common stock subject to certain limitations (including, without limitation, that the number of shares issuable does not exceed 25% of our then outstanding common stock and that the exercise or conversion price thereof is not, at the date of issuance, less than the market value per share of our common stock). Such authorization has no expiration. We may also use newly issued shares to implement our dividend reinvestment plan, whether our shares are trading at a premium or at a discount to our then current net asset value per share. Any decision to issue or sell shares of our common stock below our then current net asset value per share or securities to subscribe for or convertible into shares of our common stock would be subject to the determination by our board of directors that such issuance or sale is in our and our stockholders’ best interests. If we were to issue or sell shares of our common stock below our then current net asset value per share, such issuances or sales would result in an immediate dilution to the net asset value per share of our common stock. This dilution would occur as a result of the issuance or sale of shares at a price below the then current net asset value per share of our common stock and a proportionately greater decrease in the stockholders’ interest in our earnings and assets and their voting interest in us than the increase in our assets resulting from such issuance or sale. Because the number of shares of common stock that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted. In addition, if we issue warrants or securities to subscribe for or convertible into shares of our common stock, subject to certain limitations, the exercise or conversion price per share could be less than net asset value per share at the time of exercise or conversion (including through the operation of anti-dilution protections). Because we would incur expenses in connection with any issuance of such securities, such issuance could result in a dilution of the net asset value per share at the time of exercise or conversion. This dilution would include reduction in net asset value per share as
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Table of Contents a result of the proportionately greater decrease in the stockholders’ interest in our earnings and assets and their voting interest than the increase in our assets resulting from such issuance. Further, if our current stockholders do not purchase any shares to maintain their percentage interest, regardless of whether such offering is above or below the then current net asset value per share, their voting power will be diluted. For example, if we sell an additional 10% of our common stock at a 5% discount from net asset value, a stockholder who does not participate in that offering for its proportionate interest will suffer net asset value dilution of up to 0.5% or $5 per $1,000 of net asset value. Similarly, all distributions declared in cash payable to stockholders that are participants in our dividend reinvestment plan are automatically reinvested in shares of our common stock. As a result, stockholders that opt out of the dividend reinvestment plan may experience dilution over time. Stockholders who do not elect to receive distributions in shares of common stock may experience accretion to the net asset value of their shares if our shares are trading at a premium and dilution if our shares are trading at a discount. The level of accretion or discount would depend on various factors, including the proportion of our stockholders who participate in the plan, the level of premium or discount at which our shares are trading and the amount of the distribution payable to a stockholder. If we issue preferred stock, the net asset value and market value of our common stock may become more volatile. We cannot assure you that the issuance of preferred stock would result in a higher yield or return to the holders of the common stock. The issuance of preferred stock would likely cause the net asset value and market value of the common stock to become more volatile. If the distribution rate on the preferred stock were to approach the net rate of return on our investment portfolio, the benefit of leverage to the holders of the common stock would be reduced. If the distribution rate on the preferred stock were to exceed the net rate of return on our portfolio, the leverage would result in a lower rate of return to the holders of common stock than if we had not issued preferred stock. Any decline in the net asset value of our investments would be borne entirely by the holders of common stock. Therefore, if the market value of our portfolio were to decline, the leverage would result in a greater decrease in net asset value to the holders of common stock than if we were not leveraged through the issuance of preferred stock. This greater net asset value decrease would also tend to cause a greater decline in the market price for the common stock. We might be in danger of failing to maintain the required asset coverage of the preferred stock or of losing our ratings on the preferred stock or, in an extreme case, our current investment income might not be sufficient to meet the distribution requirements on the preferred stock. In order to counteract such an event, we might need to liquidate investments in order to fund a redemption of some or all of the preferred stock. In addition, we would pay (and the holders of common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock, including higher advisory fees if our total return exceeds the distribution rate on the preferred stock. Holders of preferred stock may have different interests than holders of common stock and may at times have disproportionate influence over our affairs. Our board of directors is authorized to reclassify any unissued shares of common stock into one or more classes of preferred stock, which could convey special rights and privileges to its owners. Under Maryland General Corporation Law (the “MGCL”) and our charter, our board of directors is authorized to classify and reclassify any authorized but unissued shares of stock into one or more classes of stock, including preferred stock. Prior to issuance of shares of each class or series, the board of directors is required by Maryland law and our charter to set the preferences, conversion or other rights, voting powers, restrictions, limitations as to other distributions, qualifications and terms or conditions of redemption for each class or series. Thus, the board of directors could authorize the issuance of shares of preferred stock with terms and conditions which could have the effect of delaying, deferring or preventing a transaction or a change in control that might involve a premium price for holders of our common stock or otherwise be in their best interest. The cost of any such reclassification would be borne by our existing common stockholders. The issuance of shares of preferred stock convertible into shares of common stock might also reduce the net income and net asset value per share of our common stock upon conversion, provided that we will only be permitted to issue such convertible preferred stock to the extent we comply with the requirements of Section 61 of the 1940 Act, including obtaining common stockholder approval. These effects, among others, could have an adverse effect on your investment in our common stock. Certain matters under the 1940 Act require the separate vote of the holders of any issued and outstanding preferred stock. For example, holders of preferred stock would vote separately from the holders of common stock on a proposal to cease operations as a BDC. In addition, the 1940 Act provides that holders of preferred stock are entitled to vote separately from holders of common stock to elect two preferred stock directors. In the event distributions become two full years in arrears, holders of any preferred stock would have the right to elect a majority of the directors until such arrearage is completely eliminated. Preferred stockholders also have class voting rights on certain matters, including changes in fundamental investment restrictions and conversion to open-end status, and accordingly can veto any such changes. Restrictions imposed on the declarations and payment of distributions to the holders of our common stock and preferred stock, both by the 1940 Act and by requirements imposed by rating agencies or the terms of our credit facilities, might impair our ability to maintain our qualification for tax treatment as a RIC for U.S. federal income tax purposes. While
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Table of Contents 41 we would intend to redeem our preferred stock to the extent necessary to enable us to distribute our income as required to maintain our qualification as a RIC, there can be no assurance that such actions could be effected in time to meet the tax requirements. To the extent we use debt or preferred stock to finance our investments, changes in interest rates will affect our cost of capital and net investment income. To the extent we borrow money, or issue preferred stock, to make investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds or pay distributions on preferred stock and the rate at which we invest those funds. In addition, many of our debt investments and borrowings have floating interest rates that reset on a periodic basis, and many of our investments are subject to interest rate floors. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income in the event we use debt to finance our investments. In periods of rising interest rates, our cost of funds have increased, and could continue to increase, because the interest rates on the amounts borrowed under our credit facilities or certain other financing arrangements are typically floating, except to the extent we issue fixed rate debt or preferred stock, which could reduce our net investment income, and the interest rate on investments with an interest rate floor (such as a SOFR floor) above current levels will not increase until interest rates exceed the applicable floor. We expect that our long-term fixed-rate investments will generally be financed with equity and long-term debt. In periods of declining interest rates, we may earn less interest income from investments and our cost of funds will also decrease, to a lesser extent, given certain of our currently outstanding indebtedness bears interest at fixed rates, resulting in lower net investment income. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. These activities could limit our ability to participate in the benefits of lower interest rates with respect to the hedged borrowings. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. You should also be aware that the rise in the general level of interest rates can be expected to lead to higher interest rates applicable to our debt investments. Accordingly, such increase in interest rates makes it easier for us to meet or exceed the incentive fee hurdle rate and may result in a substantial increase of the amount of incentive fees payable to our Investment Adviser with respect to our pre-incentive fee net investment income. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to increase our distribution rate, which could reduce the value of our common stock. We may in the future determine to fund a portion of our investments with preferred stock, which would magnify the potential for loss and the risks of investing in us in a similar way as our borrowings. Preferred stock, which is another form of leverage, has the same risks to our common stockholders as borrowings because the distributions on any preferred stock we issue must be cumulative. Payment of such distributions and repayment of the liquidation preference of such preferred stock must take preference over any distributions or other payments to our common stockholders, and preferred stockholders are not subject to any of our expenses or losses and are not entitled to participate in any income or appreciation in excess of their stated preference. Our stock repurchase program could affect the price of our common stock and increase volatility and may be suspended or terminated at any time, which may result in a decrease in the trading price of our common stock. On May 7, 2025, our board of directors most recently extended our share repurchase program (the “Program”), under which we can repurchase up to $50 million shares of our outstanding common stock. Under the Program, purchases can be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations, and at prices below the Company’s NAV as reported in its most recently published consolidated financial statements. We have in the past, and could in the future, enter into a plan to repurchase shares of our common stock pursuant to the Program in a manner intended to comply with the requirements of Rule 10b5-1 under the 1934 Act. Unless further amended or extended by our board of directors, we expect the Program to be in place until the earlier of May 7, 2026 or until $50 million of our outstanding shares of common stock have been repurchased. The Program is discretionary and whether purchases will be made under the Program and how much will be purchased at any time is uncertain and dependent on prevailing market prices and trading volumes, all of which we cannot predict. These activities could have the effect of maintaining the market price of our common stock or retarding a decline in the market price of the common stock, and, as a result, the price of our common stock could be higher than the price that otherwise might exist in the open market. Repurchases pursuant to the Program could affect the price of our common stock and increase its volatility. The existence of the Program could also cause the price of our common stock to be higher than it would be in the absence of such a program and could
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Table of Contents 42 potentially reduce the market liquidity for our common stock. There can be no assurance that any stock repurchases will enhance stockholder value because the market price of our common stock could decline below the levels at which we repurchased such shares. Any failure to repurchase shares after we have announced our intention to do so could negatively impact our reputation and investor confidence in us and could negatively impact our stock price. Although the Program is intended to enhance long-term stockholder value, short-term stock price fluctuations could reduce the Program’s effectiveness. Risks Relating to Our Business and Structure We are dependent upon SLR Capital Partners’ key personnel for our future success. We depend on the diligence, skill and network of business contacts of Messrs. Gross and Spohler, who serve as the managing partners of SLR Capital Partners and who lead SLR Capital Partners’ investment team. Messrs. Gross and Spohler, together with the other dedicated investment professionals available to SLR Capital Partners, evaluate, negotiate, structure, close and monitor our investments. Our future success will depend on the diligence, skill, network of business contacts and continued service of Messrs. Gross and Spohler and the other investment professionals available to SLR Capital Partners. We cannot assure you that unforeseen business, medical, personal or other circumstances would not lead any such individual to terminate his relationship with us. The loss of Messrs. Gross or Spohler, or any of the other senior investment professionals who serve on SLR Capital Partners’ investment team, could have a material adverse effect on our ability to achieve our investment objective as well as on our financial condition and results of operations. In addition, we can offer no assurance that SLR Capital Partners will remain our Investment Adviser. The senior investment professionals of SLR Capital Partners are and may in the future become affiliated with entities engaged in business activities similar to those intended to be conducted by us, and may have conflicts of interest in allocating their time. We expect that Messrs. Gross and Spohler will dedicate a significant portion of their time to the activities of SLR Investment Corp.; however, they may be engaged in other business activities which could divert their time and attention in the future. Specifically, Mr. Gross serves as Co- Chief Executive Officer and President of SCP Private Credit Income BDC LLC, SLR HC BDC LLC, and SLR Private Credit BDC II LLC. In addition, Mr. Spohler serves as Co-Chief Executive Officer and Chief Operating Officer of SCP Private Credit Income BDC LLC, SLR HC BDC LLC, and SLR Private Credit BDC II LLC. Our business model depends to a significant extent upon strong referral relationships with financial sponsors, and the inability of the senior investment professionals of our Investment Adviser to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business. We expect that the principals of our Investment Adviser will maintain and develop their relationships with financial sponsors, and we will rely to a significant extent upon these relationships to provide us with potential investment opportunities. If the senior investment professionals of our Investment Adviser fail to maintain their existing relationships or develop new relationships with other sponsors or sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the senior investment professionals of our Investment Adviser have relationships are not obligated to provide us with investment opportunities, and, therefore, there is no assurance that such relationships will generate investment opportunities for us. If our Investment Adviser is unable to source investment opportunities, we may hold a greater percentage of our assets in cash and cash equivalents than anticipated, which could impact potential returns on our portfolio. A disruption in the capital markets and the credit markets could negatively affect our business. As a BDC, we must maintain our ability to raise additional capital for investment purposes. Without sufficient access to the capital markets or credit markets, we may be forced to curtail our business operations or we may not be able to pursue new business opportunities. Disruptive conditions in the financial industry and the impact of new legislation in response to those conditions could restrict our business operations and could adversely impact our results of operations and financial condition. If the fair value of our assets declines substantially, we may fail to maintain the asset coverage ratios imposed upon us by the 1940 Act and our existing credit facilities. Any such failure could result in an event of default and all of our debt being declared immediately due and payable and would affect our ability to issue senior securities, including borrowings, and pay distributions, which could materially impair our business operations. Our liquidity could be impaired further by an inability to access the capital markets or to draw on our credit facilities. For example, we cannot be certain that we will be able to renew our existing credit facilities as they mature or to consummate new borrowing facilities to provide capital for normal operations, including new originations. Reflecting concern about the stability of the financial markets, many lenders and institutional investors have reduced or ceased providing funding to borrowers. This market turmoil and tightening of credit have led to increased market volatility and widespread reduction of business activity generally.
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Table of Contents If we are unable to renew or replace our existing credit facilities and consummate new facilities on commercially reasonable terms, our liquidity will be reduced significantly. If we consummate new facilities but are then unable to repay amounts outstanding under such facilities and are declared in default or are unable to renew or refinance these facilities, we would not be able to initiate significant originations or to operate our business in the normal course. These situations may arise due to circumstances that we may be unable to control, such as inaccessibility to the credit markets, a severe decline in the value of the U.S. dollar, an economic downturn or an operational problem that affects third parties or us, and could materially damage our business. Moreover, we are unable to predict when economic and market conditions may become more favorable. Even if such conditions improve broadly and significantly over the long term, adverse conditions in particular sectors of the financial markets could adversely impact our business. Our financial condition and results of operations will depend on SLR Capital Partners’ ability to manage our future growth effectively by identifying, investing in and monitoring companies that meet our investment criteria. Our ability to achieve our investment objective and to grow depends on SLR Capital Partners’ ability to identify, invest in and monitor companies that meet our investment criteria. Accomplishing this result on a cost-effective basis is largely a function of SLR Capital Partners’ structuring of the investment process, its ability to provide competent, attentive and efficient services to us and its ability to access financing for us on acceptable terms. The investment team of SLR Capital Partners has substantial responsibilities under the Advisory Agreement, and they may also be called upon to provide managerial assistance to our portfolio companies as the principals of our Administrator. In addition, the members of SLR Capital Partners’ investment team have similar responsibilities with respect to the management of other investment portfolios, including the investment portfolios of SCP Private Credit Income BDC LLC, SLR HC BDC LLC, and SLR Private Credit BDC II LLC. Such demands on their time may distract them or slow our rate of investment. In order to grow, we and SLR Capital Partners will need to retain, train, supervise and manage new investment professionals. However, we can offer no assurance that any such investment professionals will contribute effectively to the work of the Investment Adviser. Any failure to manage our future growth effectively could have a material adverse effect on our business, financial condition and results of operations. We may need to raise additional capital to grow because we must distribute most of our income. We may need additional capital to fund growth in our investments. We expect to issue equity securities and expect to borrow from financial institutions in the future. A reduction in the availability of new capital could limit our ability to grow. We must distribute at least 90% of our investment company taxable income to our stockholders to maintain our tax treatment as a RIC. As a result, any such cash earnings may not be available to fund investment originations. We expect to borrow from financial institutions and issue additional debt and equity securities. If we fail to obtain funds from such sources or from other sources to fund our investments, it could limit our ability to grow, which may have an adverse effect on the value of our securities. In addition, as a BDC, our ability to borrow or issue additional preferred stock may be restricted if our total assets are less than 150% of our total borrowings and preferred stock. Any failure on our part to maintain our status as a BDC would reduce our operating flexibility and we may be limited in our investment choices as a BDC. The 1940 Act imposes numerous constraints on the operations of BDCs. For example, BDCs are required to invest at least 70% of their total assets in specified types of securities, primarily in private companies or thinly-traded U.S. public companies, cash, cash equivalents, U.S. government securities and other high quality debt investments that mature in one year or less. Furthermore, any failure to comply with the requirements imposed on BDCs by the 1940 Act could cause the SEC to bring an enforcement action against us and/or expose us to claims of private litigants. In addition, upon approval of a majority of our stockholders, we may elect to withdraw our status as a BDC. If we decide to withdraw our election, or if we otherwise fail to qualify, or maintain our qualification, as a BDC, we may be subject to the substantially greater regulation under the 1940 Act as a closed-end investment company. Compliance with such regulations would significantly decrease our operating flexibility, and could have a material adverse effect on our business, financial condition and results of operations. Regulations governing our operation as a BDC affect our ability to, and the way in which we will, raise additional capital. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage. In order to satisfy the tax requirements applicable to a RIC, to avoid payment of excise taxes and to minimize or avoid payment of income taxes, we intend to distribute to our stockholders substantially all of our ordinary income and realized net capital gains except for certain realized net long-term capital gains, which we may retain, pay applicable income taxes with respect thereto and elect to treat as deemed distributions to our stockholders. We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, we had been permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 200% of gross assets less all liabilities and indebtedness not represented by
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Table of Contents senior securities, after each issuance of senior securities. However, our stockholders have approved a resolution permitting us to be subject to a 150% asset coverage ratio effective as of October 12, 2018. If the value of our assets declines, we may be unable to satisfy the asset coverage test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common stockholders. Furthermore, as a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss. In addition, because our management fee is calculated as a percentage of our gross assets, which includes any borrowings for investment purposes, the management fee expenses will increase if we incur additional indebtedness. As of December 31, 2025, we had $505.4 million outstanding under the Credit Facility, composed of $352.2 million of revolving credit and $153.1 million outstanding of term loans, and $165.1 million outstanding under our SPV Credit Facility. We also had $75.0 million outstanding of 2028 Series J Unsecured Notes, $50.0 million outstanding of 2028 Series I Unsecured Notes, $50.0 million outstanding of 2028 Series H Unsecured Notes, $49.0 million outstanding of 2027 Series G Unsecured Notes, $135.0 million outstanding of the 2027 Series F Unsecured Notes, $50.0 million outstanding of the 2027 Unsecured Notes and $75.0 million outstanding of the 2026 Unsecured Notes. If we issue preferred stock, the preferred stock would rank “senior” to common stock in our capital structure, preferred stockholders would generally vote together with common stockholders but would have separate voting rights on certain matters and might have other rights, preferences, or privileges more favorable than those of our common stockholders, and the issuance of preferred stock could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in your best interest. We are not generally able to issue and sell our common stock at a price below net asset value per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current net asset value per share of our common stock if our board of directors determines that such sale is in the best interests of SLR Investment Corp. and its stockholders, and our stockholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our board of directors, closely approximates the market value of such securities (less any distributing commission or discount). If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our stockholders at that time will decrease, and you might experience dilution. This dilution would occur as a result of a proportionately greater decrease in a stockholder’s interest in our earnings and assets and voting interest in us than the increase in our assets resulting from such issuance. Because the number of future shares of common stock that may be issued below our net asset value per share and the price and timing of such issuances are not currently known, we cannot predict the actual dilutive effect of any such issuance. We cannot determine the resulting reduction in our net asset value per share of any such issuance. We also cannot predict whether shares of our common stock will trade above, at or below our net asset value. Our credit ratings may not reflect all risks of an investment in our debt securities. Our credit ratings are an assessment by third parties of our ability to pay our obligations. Consequently, real or anticipated changes in our credit ratings will generally affect the market value of our publicly issued debt securities. Our credit ratings, however, may not reflect the potential impact of risks related to market conditions generally or other factors discussed above on the market value of, or trading market for, any publicly issued debt securities. Our stockholders may experience dilution in their ownership percentage if they opt out of our dividend reinvestment plan. All distributions declared in cash payable to stockholders that are participants in our dividend reinvestment plan are automatically reinvested in shares of our common stock. In the event we issue new shares in connection with our dividend reinvestment plan, our stockholders that do not elect to receive distributions in shares of common stock may experience dilution in their ownership percentage over time as a result of such issuance. We have and will continue to borrow money, which would magnify the potential for loss on amounts invested and may increase the risk of investing in us. We borrow money as part of our business plan. Borrowings, also known as leverage, magnify the potential for loss on amounts invested and, therefore, increase the risks associated with investing in our securities. As of December 31, 2025, we had $505.4 million outstanding under the Credit Facility, composed of $352.2 million of revolving credit and $153.1 million outstanding of term loans, and $165.1 million outstanding under our SPV Credit Facility. We also had $75.0 million outstanding of 2028 Series J Unsecured Notes, $50.0 million outstanding of 2028 Series I Unsecured Notes, $50.0 million outstanding of 2028 Series H Unsecured Notes, $49.0 million outstanding of 2027 Series G Unsecured Notes, $135.0 million outstanding of the 2027 Series F Unsecured Notes, $50.0 million outstanding of the 2027 Unsecured Notes and $75.0 million outstanding of the 2026 Unsecured Notes. We may borrow from and issue senior debt securities to banks, insurance companies and other lenders in the future. Lenders of these senior securities,
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Table of Contents 45 including the Credit Facility, the SPV Credit Facility, the 2028 Series J Unsecured Notes, the 2028 Series I Unsecured Notes, the 2028 Series H Unsecured Notes, the 2027 Series G Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Unsecured Notes and the 2026 Unsecured Notes, will have fixed dollar claims on our assets that are superior to the claims of our common stockholders, and we would expect such lenders to seek recovery against our assets in the event of a default. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Also, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could also negatively affect our ability to make distribution payments on our common stock, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative investment technique. Our ability to service any debt that we incur will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. Moreover, as the management fee payable to our Investment Adviser, SLR Capital Partners, will be payable based on our gross assets, including those assets acquired through the use of leverage, SLR Capital Partners will have a financial incentive to incur leverage which may not be consistent with our stockholders’ interests. In addition, our common stockholders will bear the burden of any increase in our expenses as a result of leverage, including any increase in the management fee payable to SLR Capital Partners. As a BDC, we had generally been required to meet a coverage ratio of total assets to total borrowings and other senior securities, which include all of our borrowings and any preferred stock that we may issue in the future, of at least 200%. However, our stockholders have approved a resolution permitting us to be subject to a 150% asset coverage ratio effective as of October 12, 2018. Even though we are subject to a 150% asset coverage ratio effective as of October 12, 2018, contractual leverage limitations under our existing credit facilities or future borrowings may limit our ability to incur additional indebtedness. On August 28, 2019, we entered into the Credit Facility, which was amended on December 28, 2021, which permits 150% asset coverage. Some of our wholly and/or substantially owned portfolio companies, including Kingsbridge Holdings, LLC, SLR Credit Solutions, SLR Equipment Finance, SLR Business Credit and SLR Healthcare ABL, may incur significantly more leverage than we can but we do not consolidate Kingsbridge Holdings, LLC, SLR Credit Solutions, SLR Equipment Finance, SLR Business Credit and SLR Healthcare ABL and their leverage is non-recourse to us. Additionally, the Credit Facility and the SPV Credit Facility require us to comply with certain financial and other restrictive covenants including maintaining an asset coverage ratio of not less than 150% at any time. Failure to maintain compliance with these covenants could result in an event of default and all of our debt being declared immediately due and payable. If this ratio declines below 150%, we may not be able to incur additional debt and could be required by law to sell a portion of our investments to repay some debt when it is disadvantageous to do so, which could have a material adverse effect on our operations, and we may not be able to make distributions. The amount of leverage that we employ will depend on our Investment Adviser’s and our board of directors’ assessment of the market and other factors at the time of any proposed borrowing. We cannot assure you that we will be able to obtain credit at all or on terms acceptable to us. In addition, our credit facilities impose, and any other debt facility into which we may enter would likely impose, financial and operating covenants that restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain RIC tax treatment under Subchapter M of the Code. The debt securities that we may issue will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. We, and indirectly our stockholders, bear the cost of issuing and servicing such debt securities. Any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock. Illustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns on our portfolio, net of interest expense. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below. Assumed total return(net of interest expense) (10)% (5)% 0% 5% 10% Corresponding return to stockholder(1) (32.4)% (19.5)% (6.6)% 6.3% 19.3% (1) Assumes $2.57 billion in total assets (inclusive of temporary cash assets of $349 million) and $1.15 billion in total debt outstanding, which reflects our total assets and total debt outstanding as of December 31, 2025, and a cost of funds of 5.67%. Excludes non- leverage related expenses.
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Table of Contents In order for us to cover our annual interest payments on our outstanding indebtedness at December 31, 2025, we must achieve annual returns on our December 31, 2025 total assets of at least 2.5%. It is likely that the terms of any current or future long-term or revolving credit or warehouse facility we may enter into in the future could constrain our ability to grow our business. Our current lenders have, and any future lender or lenders may have, fixed dollar claims on our assets that are senior to the claims of our stockholders and, thus, will have a preference over our stockholders with respect to our assets in the collateral pool. Our current credit facilities and borrowings also subject us to various financial and operating covenants, including, but not limited to, maintaining certain financial ratios and minimum tangible net worth amounts. Future credit facilities and borrowings will likely subject us to similar or additional covenants. In addition, we may grant a security interest in our assets in connection with any such credit facilities and borrowings. Our credit facilities generally contain customary default provisions such as a minimum net worth amount, a profitability test, and a restriction on changing our business and loan quality standards. In addition, our credit facilities require or are expected to require the repayment of all outstanding debt on the maturity, which may disrupt our business and potentially the business of our portfolio companies that are financed through our credit facilities. An event of default under our credit facilities would likely result, among other things, in termination of the availability of further funds under our credit facilities and accelerated maturity dates for all amounts outstanding under our credit facilities, which would likely disrupt our business and, potentially, the business of the portfolio companies whose loans we finance through our credit facilities. This could reduce our revenues and, by delaying any cash payment allowed to us under our credit facilities until the lender has been paid in full, reduce our liquidity and cash flow and impair our ability to grow our business and maintain RIC tax treatment. The terms of future available financing may place limits on our financial and operational flexibility. If we are unable to obtain sufficient capital in the future, we may be forced to reduce or discontinue our operations, not be able to make new investments, or otherwise respond to changing business conditions or competitive pressures. Our quarterly and annual operating results are subject to fluctuation as a result of the nature of our business, and if we fail to achieve our investment objective, the net asset value of our common stock may decline. We could experience fluctuations in our quarterly and annual operating results due to a number of factors, some of which are beyond our control, including, but not limited to, the interest rate payable on the debt securities that we acquire, the default rate on such securities, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, changes in our portfolio composition, the degree to which we encounter competition in our markets, market volatility in our publicly traded securities and the securities of our portfolio companies, and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods. In addition, any of these factors could negatively impact our ability to achieve our investment objectives, which may cause our net asset value of our common stock to decline. Our investments may be in portfolio companies that may have limited operating histories and financial resources. We expect that our portfolio will continue to consist of investments that may have relatively limited operating histories. These companies may be particularly vulnerable to U.S. and foreign economic downturns, may have more limited access to capital and higher funding costs, may have a weaker financial position and may need more capital to expand or compete. These businesses also may experience substantial variations in operating results. They may face intense competition, including from companies with greater financial, technical and marketing resources. Furthermore, some of these companies do business in regulated industries and could be affected by changes in government regulation. Accordingly, these factors could impair their cash flow or result in other events, such as bankruptcy, which could limit their ability to repay their obligations to us, and may adversely affect the return on, or the recovery of, our investment in these companies. We cannot assure you that any of our investments in our portfolio companies will be successful. Our portfolio companies compete with larger, more established companies with greater access to, and resources for, further development in these new technologies. Therefore, we may lose our entire investment in any or all of our portfolio companies. There will be uncertainty as to the value of our portfolio investments, which may impact our net asset value. A large percentage of our portfolio investments are in the form of securities that are not publicly traded. The fair value of securities and other investments that are not publicly traded may not be readily determinable. We value these securities on a quarterly basis in accordance with our valuation policy, which is at all times consistent with GAAP. Our board of directors will (1) periodically
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Table of Contents assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services; (5) oversee the reporting required by Rule 2a-5 under the 1940 Act; and (6) maintain recordkeeping requirements under Rule 2a-5. Our board of directors utilizes the services of third-party valuation firms to aid it in determining the fair value of material assets. The board of directors discusses valuations and determines the fair value in good faith based on the input of our Investment Adviser and, when utilized, the respective third-party valuation firms. The factors that may be considered in fair value pricing our investments include the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings, the markets in which the portfolio company does business, comparisons to publicly traded companies, discounted cash flow and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such securities. Our equity ownership in a portfolio company may represent a control investment. Our ability to exit an investment in a timely manner because we are in a control position or have access to inside information in the portfolio company could result in a realized loss on the investment. If we obtain a control investment in a portfolio company our ability to divest ourselves from a debt or equity investment could be restricted due to illiquidity in a private stock, limited trading volume on a public company’s stock, inside information on a company’s performance, insider blackout periods, or other factors that could prohibit us from disposing of the investment as we would if it were not a control investment. Additionally, we may choose not to take certain actions to protect a debt investment in a control investment portfolio company. As a result, we could experience a decrease in the value of our portfolio company holdings and potentially incur a realized loss on the investment. There are significant potential conflicts of interest, including SLR Capital Partners’ management of other investment funds such as SCP Private Credit Income BDC LLC, SLR HC BDC LLC, and SLR Private Credit BDC II LLC, which could impact our investment returns, and an investment in SLR Investment Corp. is not an investment in SCP Private Credit Income BDC LLC, SLR HC BDC LLC, or SLR Private Credit BDC II LLC. Our executive officers and directors, as well as the current and future partners of our Investment Adviser, SLR Capital Partners, may serve as officers, directors or principals of entities that operate in the same or a related line of business as we do. For example, SLR Capital Partners presently serves as the Investment Adviser to (i) SCP Private Credit Income BDC LLC, an unlisted BDC that focuses on investing primarily in senior secured loans, including non-traditional asset-based loans and first lien loans, (ii) SLR HC BDC LLC, an unlisted BDC whose principal focus is to invest directly and indirectly in senior secured loans and other debt instruments typically to middle market companies within the healthcare industry, and (iii) SLR Private Credit BDC II LLC, an unlisted BDC whose principal focus is to invest in first lien senior secured floating rate loans primarily to upper middle market leveraged companies with EBITDA between approximately $25 million and $250 million that have significant free cash flow and are in non-cyclical industries in which the Investment Adviser has significant experience. In addition, Michael S. Gross, our Chairman, Co-Chief Executive Officer and President, Bruce Spohler, our Co-Chief Executive Officer and Chief Operating Officer and board member, Shiraz Y. Kajee, our Chief Financial Officer and Treasurer, and Guy F. Talarico, our Chief Compliance Officer and Secretary, serve in similar capacities for SCP Private Credit Income BDC LLC, SLR HC BDC LLC, and SLR Private Credit BDC II LLC. Accordingly, they may have obligations to investors in those entities, the fulfillment of which obligations might not be in the best interests of us or our stockholders. In addition, we note that any affiliated investment vehicle formed in the future and managed by our Investment Adviser or its affiliates may, notwithstanding different stated investment objectives, have overlapping investment objectives with our own and, accordingly, may invest in asset classes similar to those targeted by us. As a result, SLR Capital Partners may face conflicts in allocating investment opportunities between us and such other entities. Although SLR Capital Partners will endeavor to allocate investment opportunities in a fair and equitable manner, it is possible that, in the future, we may not be given the opportunity to participate in investments made by investment funds managed by our Investment Adviser or an investment manager affiliated with our Investment Adviser. In any such case, when SLR Capital Partners identifies an investment, it will be forced to choose which investment fund should make the investment. As a BDC, we were substantially limited in our ability to co-invest in privately negotiated transactions with affiliated funds until we obtained an exemptive order from the SEC. The most recent exemptive order, received on June 13, 2017, permits us to participate in negotiated co-investment transactions with certain affiliates, each of whose investment adviser is an investment adviser that controls, is controlled by or is under common control with SLR Capital Partners and is registered as an Investment Adviser under the Advisers Act, in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to the conditions to the Exemptive Order. If we are unable to rely on the Exemptive Order for a particular opportunity, such opportunity will be allocated first to the entity whose investment strategy is the most consistent with the opportunity being allocated, and second, if the terms of the opportunity are consistent with more than one
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Table of Contents 48 entity’s investment strategy, on an alternating basis. Although our investment professionals will endeavor to allocate investment opportunities in a fair and equitable manner, we and our common stockholders could be adversely affected to the extent investment opportunities are allocated among us and other investment vehicles managed or sponsored by, or affiliated with, our executive officers, directors and members of our Investment Adviser.
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Table of Contents SLR Capital Partners and certain investment advisory affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, SLR Capital Partners or its affiliates may determine that we should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with SLR Capital Partners’ allocation procedures. Related party transactions may occur among SLR Investment Corp., SLR Credit Solutions, Equipment Operating Leases LLC, Loyer Capital LLC, SLR Equipment Finance, SLR Business Credit, SLR Healthcare ABL, SLR Senior Lending Program LLC and SLR Senior Lending Program SPV LLC. These transactions may occur in the normal course of business. No administrative or other fees are paid to SLR Capital Partners by SLR Credit Solutions, Equipment Operating Leases LLC, Loyer Capital LLC, SLR Equipment Finance, SLR Business Credit, SLR Healthcare ABL, SLR Senior Lending Program LLC and SLR Senior Lending Program SPV LLC. In the ordinary course of our investing activities, we pay management and incentive fees to SLR Capital Partners and reimburse SLR Capital Partners for certain expenses it incurs. As a result, investors in our common stock will invest on a “gross” basis and receive distributions on a “net” basis after expenses, resulting in a lower rate of return than an investor might achieve through direct investments. Accordingly, there may be times when the management team of SLR Capital Partners has interests that differ from those of our stockholders, giving rise to a conflict. We entered into an amended and restated royalty-free license agreement on February 25, 2021 with our Investment Adviser, pursuant to which our Investment Adviser has granted us a non-exclusive license to use the marks “SOLAR” and “SLR.” Under the license agreement, we have the right to use the “SLR Investment” name for so long as SLR Capital Partners or one of its affiliates remains our Investment Adviser. In addition, we pay SLR Capital Management, an affiliate of SLR Capital Partners, our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and our allocable portion of the compensation of our chief compliance officer and our chief financial officer and their respective staffs. These arrangements create conflicts of interest that our board of directors must monitor. Our ability to enter into transactions involving derivatives and financial commitment transactions may be limited. Through comprehensive global regulatory regimes impacting derivatives (e.g., the Dodd-Frank Act, European Market Infrastructure Regulation (“EMIR”), Markets in Financial Investments Regulation/Markets in Financial Instruments Directive), certain over-the-counter derivatives transactions in which we may engage are subject to various requirements, such as mandatory central clearing of transactions which include additional margin requirements and in certain cases trading on electronic platforms, pre-and post-trade transparency reporting requirements and mandatory bi-lateral exchange of initial margin for non-cleared swaps. The Dodd-Frank Act also created new categories of regulated market participants, such as “swap dealers,” “security-based swap dealers,” “major swap participants,” and “major security-based swap participants” who are subject to significant new capital, registration, recordkeeping, reporting, disclosure, business conduct and other regulatory requirements. Even if we are not located in a particular jurisdiction or directly subject to the jurisdiction’s derivatives regulations, we may still be impacted to the extent we enter into a derivatives transaction with a regulated market participant or counterparty that is organized in that jurisdiction or otherwise subject to that jurisdiction’s derivatives regulations. The effect of such requirements will be likely to (directly or indirectly) increase our overall costs of entering into derivatives transactions. In particular, new margin requirements, position limits and significantly higher capital charges resulting from new global capital regulations, even if not directly applicable to us, may cause an increase in the pricing of derivatives transactions entered into by market participants to whom such requirements apply or affect our overall ability to enter into derivatives transactions with certain counterparties. Administrative costs related to such requirements such as registration, recordkeeping, reporting, and compliance, even if not directly applicable to us, may also be reflected in our derivatives transactions. Requirements to trade certain derivatives transactions on electronic trading platforms and trade reporting requirements may lead to (among other things) fragmentation of the markets, higher transaction costs or reduced availability of derivatives, and/or a reduced ability to hedge, all of which could adversely affect the performance of certain of our trading strategies. In addition, changes to derivatives regulations may impact the tax and/or accounting treatment of certain derivatives, which could adversely impact us. In November 2020, the SEC adopted new rules regarding the ability of a BDC (or a registered investment company) to use derivatives and other transactions that create future payment or delivery obligations. BDCs that use derivatives would be subject to a value-at-risk leverage limit, certain other derivatives risk management program and testing requirements and requirements related to board reporting. These new requirements would apply unless the BDC qualified as a “limited derivatives user,” as defined in the SEC’s adopted rules. A BDC that enters into reverse repurchase agreements or similar financing transactions would need to aggregate the amount of indebtedness associated with the reverse repurchase agreements or similar financing transactions and could either (i) comply with the asset coverage requirements of the Section 18 of the 1940 Act when engaging in reverse repurchase agreements or (ii) choose to treat such agreements as derivative transactions under the adopted rule. Under the adopted rule, a BDC may enter into an
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Table of Contents 50 unfunded commitment agreement that is not a derivatives transaction, such as an agreement to provide financing to a portfolio company, if the BDC has a reasonable belief, at the time it enters into such an agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as it becomes due. If the BDC cannot meet this test, it is required to consider unfunded commitments for purposes of computing the BDC’s asset coverage. Collectively, these requirements may limit our ability to use derivatives and/or enter into certain other financial contracts. We may be obligated to pay our Investment Adviser incentive compensation even if we incur a loss. Our Investment Adviser will be entitled to incentive compensation for each fiscal quarter in an amount equal to a percentage of the excess of our pre-incentive fee net investment income for that quarter (before deducting incentive compensation) above a performance threshold for that quarter. Accordingly, since the performance threshold is based on a percentage of our net asset value, decreases in our net asset value make it easier to achieve the performance threshold. Our pre-incentive fee net investment income for incentive compensation purposes excludes realized and unrealized capital losses or depreciation that we may incur in the fiscal quarter, even if such capital losses or depreciation result in a net loss on our statement of operations for that quarter. Thus, we may be required to pay SLR Capital Partners incentive compensation for a fiscal quarter even if there is a decline in the value of our portfolio or we incur a net loss for that quarter. Our incentive fee may induce SLR Capital Partners to pursue speculative investments. The incentive fee payable by us to SLR Capital Partners may create an incentive for SLR Capital Partners to pursue investments on our behalf that are riskier or more speculative than would be the case in the absence of such compensation arrangement. The incentive fee payable to our Investment Adviser is calculated based on a percentage of our return on invested capital. This may encourage our Investment Adviser to use leverage to increase the return on our investments. Under certain circumstances, the use of leverage may increase the likelihood of default, which would impair the value of our common stock. In addition, our Investment Adviser receives the incentive fee based, in part, upon net capital gains realized on our investments. Unlike that portion of the incentive fee based on income, there is no hurdle rate applicable to the portion of the incentive fee based on net capital gains. As a result, our Investment Adviser may have a tendency to invest more capital in investments that are likely to result in capital gains as compared to income producing securities. Such a practice could result in our investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns. The incentive fee payable by us to our Investment Adviser also may induce SLR Capital Partners to invest on our behalf in instruments that have a deferred interest feature, even if such deferred payments would not provide the cash necessary to enable us to pay current distributions to our stockholders. Under these investments, we would accrue interest over the life of the investment but would not receive the cash income from the investment until the end of the term. Our net investment income used to calculate the income portion of our investment fee, however, includes accrued interest. Thus, a portion of this incentive fee would be based on income that we have not received in cash. In addition, the “catch-up” portion of the incentive fee may encourage SLR Capital Partners to accelerate or defer interest payable by portfolio companies from one calendar quarter to another, potentially resulting in fluctuations in timing and distribution amounts. We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds, and, to the extent we so invest, will bear our ratable share of any such investment company’s expenses, including management and performance fees. We will also remain obligated to pay management and incentive fees to SLR Capital Partners with respect to the assets invested in the securities and instruments of other investment companies. With respect to each of these investments, each of our stockholders will bear his or her share of the management and incentive fee of SLR Capital Partners as well as indirectly bearing the management and performance fees and other expenses of any investment companies in which we invest.
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Table of Contents 51 We may become subject to corporate-level U.S. federal income tax if we are unable to qualify and maintain our qualification for tax treatment as a regulated investment company under Subchapter M of the Code. Although we have elected to be treated as a RIC under Subchapter M of the Code, no assurance can be given that we will continue to be able to qualify for and maintain RIC tax treatment. To maintain RIC tax treatment under the Code, we must meet the following annual distribution, income source and asset diversification requirements on an ongoing basis. • The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our stockholders on an annual basis at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Because we may use debt financing, we are subject to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the Annual Distribution Requirement. If we are unable to obtain cash from other sources, we could fail to qualify for RIC tax treatment and become subject to corporate-level U.S federal income tax. • The income source requirement will be satisfied if we obtain at least 90% of our income for each year from certain passive investments, including interest, dividends, gains from the sale of stock or securities, or similar sources. • The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. Failure to meet those requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC tax treatment. Because most of our investments will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses. If we fail to qualify for RIC tax treatment for any reason and become subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions. Such a failure could have a material adverse effect on us, the net asset value of our common stock and the total return, if any, obtainable from your investment in our common stock. We may have difficulty satisfying the Annual Distribution Requirement in order to qualify and maintain RIC tax treatment if we recognize income before or without receiving cash representing such income. In accordance with GAAP and tax requirements, we include in income certain amounts that we have not yet received in cash, such as contractual PIK interest, which represents contractual interest added to a loan balance and due at the end of such loan’s term. In addition to the cash yields received on our loans, in some instances, certain loans may also include any of the following: end-of-term payments, exit fees, balloon payment fees or prepayment fees. The increases in loan balances as a result of contractual PIK arrangements are included in income for the period in which such PIK interest was accrued, which is often in advance of receiving a cash payment, and are separately identified on our statements of cash flows. We also may be required to include in income certain other amounts prior to receiving the related cash. Any warrants that we receive in connection with our debt investments will generally be valued as part of the negotiation process with the particular portfolio company. As a result, a portion of the aggregate purchase price for the debt investments and warrants will be allocated to the warrants that we receive. This will generally result in “original issue discount” for U.S. federal income tax purposes, which we must recognize as ordinary income, increasing the amount that we are required to distribute to qualify for the U.S. federal income tax benefits applicable to RICs. Because these warrants generally will not produce distributable cash for us at the same time as we are required to make distributions in respect of the related original issue discount, we would need to obtain cash from other sources or to pay a portion of our distributions using shares of newly issued common stock, consistent with Internal Revenue Service requirements, to satisfy the Annual Distribution and Excise Tax Avoidance requirements. Other features of the debt instruments that we hold may also cause such instruments to generate original issue discount, resulting in a distribution requirement in excess of current cash interest received. Since in certain cases we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the RIC tax requirement to distribute at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Under such circumstances, we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If we are unable to obtain cash from other sources and are otherwise unable to satisfy such distribution requirements, we may fail to qualify for the U.S. federal income tax benefits allowable to RICs and, thus, become subject to a corporate-level U.S. federal income tax on all our income.
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Table of Contents 52 Provisions of the Maryland General Corporation Law and of our charter and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock. The MGCL and our charter and bylaws contain provisions that may discourage, delay or make more difficult a change in control of SLR Investment Corp. or the removal of our directors. We are subject to the Maryland Business Combination Act, subject to any applicable requirements of the 1940 Act. Our board of directors has adopted a resolution exempting from the Maryland Business Combination Act any business combination between us and any other person, subject to prior approval of such business combination by our board of directors, including approval by a majority of our disinterested directors. If the resolution exempting business combinations is repealed or our board of directors does not approve a business combination, the Maryland Business Combination Act may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer. Our bylaws exempt from the Maryland Control Share Acquisition Act (the “Control Share Act”) acquisitions of our stock by any person. If we amend our bylaws to repeal the exemption from the Control Share Act, the Control Share Act also may make it more difficult for a third party to obtain control of us and increase the difficulty of consummating such a transaction. The SEC staff has rescinded its position that, under the 1940 Act, an investment company may not avail itself of the Control Share Act. As a result, we will amend our bylaws to be subject to the Control Share Act only if our board of directors determines that it would be in our best interests. We have also adopted measures that may make it difficult for a third party to obtain control of us, including provisions of our charter classifying our board of directors in three classes serving staggered three-year terms, and authorizing our board of directors to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock and to amend our charter without stockholder approval to increase or decrease the number of shares of stock that we have authority to issue. These provisions, as well as other provisions of our charter and bylaws, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders. The foregoing provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to negotiate first with our board of directors. However, these provisions may deprive a stockholder of the opportunity to sell such stockholder’s shares at a premium to a potential acquirer. We believe that the benefits of these provisions outweigh the potential disadvantages of discouraging any such acquisition proposals because, among other things, the negotiation of such proposals may improve their terms. Our board of directors has considered both the positive and negative effects of the foregoing provisions and determined that they are in the best interest of our stockholders. Our bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders and provide that claims relating to causes of action under the Securities Act may only be brought in federal district courts, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or agents, if any, and could discourage lawsuits against us and our directors, officers and agents, if any. Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Northern Division, will be the sole and exclusive forum for (a) any Internal Corporate Claim, as such term is defined in the MGCL, (b) any derivative action or proceeding brought on our behalf (other than actions arising under federal securities laws), (c) any action asserting a claim of breach of any duty owed by any of our directors, officers or other agents to us or to our stockholders, (d) any action asserting a claim against us or any of our directors, officers or other agents arising pursuant to any provision of the MGCL or our charter or bylaws or (e) any other action asserting a claim against us or any of our directors, officers or other employees that is governed by the internal affairs doctrine. With respect to any proceeding described in the foregoing sentence that is in the Circuit Court for Baltimore City, Maryland, our stockholders consent to the assignment of the proceeding to the Business and Technology Case Management Program pursuant to Maryland Rule 16-308 or any successor thereof. None of the foregoing actions, claims or proceedings may be brought in any court sitting outside the State of Maryland unless we consent in writing to such court. Our bylaws do not apply to lawsuits asserting claims brought to enforce a duty or liability arising exclusively under the Securities Act, the 1934 Act, or the 1940 Act, or any other claim for which the federal courts have exclusive jurisdiction.
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Table of Contents Unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. This paragraph does not apply to claims arising exclusively under the 1934 Act or the 1940 Act, or any other claim for which the federal courts have exclusive jurisdiction. These exclusive forum provisions may limit the ability of our stockholders to bring a claim in a judicial forum that such stockholders find favorable for disputes with us or our directors, officers, or agents, if any, which may discourage such lawsuits against us and our directors, officers, and agents, if any. Alternatively, if a court were to find the choice of forum provisions contained in our bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect our business, financial condition, and operating results. For example, under the Securities Act, federal courts have concurrent jurisdiction over all suits brought to enforce any duty or liability created by the Securities Act, and investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. The failure in cyber security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively. The occurrence of a disaster, such as a cyber-attack against us or against a third party that has access to our data or networks, a natural catastrophe, an industrial accident, failure of our disaster recovery systems, or consequential employee error, could have an adverse effect on our ability to communicate or conduct business, negatively impacting our operations and financial condition. This adverse effect can become particularly acute if those events affect our electronic data processing, transmission, storage, and retrieval systems, or impact the availability, integrity, or confidentiality of our data. We depend heavily upon computer systems to perform necessary business functions. We rely on the Investment Adviser’s enterprise-wide cybersecurity program, to protect its information, including due oversight of the cybersecurity programs of our key service providers and processes for the assessment, identification, and management of material risks from cybersecurity threats, including those associated with the use of third-party service providers. Despite the Investment Adviser’s implementation of a variety of security measures, our computer systems, networks, and data, like those of other companies, could be subject to cyber-attacks and unauthorized access, use, alteration, or destruction, such as from physical and electronic break-ins or unauthorized tampering. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary, and other information processed, stored in, and transmitted through our computer systems and networks. Such an attack could cause interruptions or malfunctions in our operations, which could result in financial losses, litigation, regulatory penalties, client dissatisfaction or loss, reputational damage, and increased costs associated with mitigation of damages and remediation. If unauthorized parties gain access to such information and technology systems, they may be able to steal, publish, delete or modify private and sensitive information, including nonpublic personal information related to stockholders (and their beneficial owners) and material nonpublic information. The systems the Investment Adviser has implemented to manage risks relating to these types of events could prove to be inadequate and, if compromised, could become inoperable for extended periods of time, cease to function properly or fail to adequately secure private information. Breaches such as those involving covertly introduced malware, impersonation of authorized users and industrial or other espionage may not be identified even with sophisticated prevention and detection systems, potentially resulting in further harm and preventing them from being addressed appropriately. The failure of these systems or of disaster recovery plans for any reason could cause significant interruptions in our and our Investment Adviser’s operations and result in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to stockholders, material nonpublic information and other sensitive information in our possession. A disaster or a disruption in the infrastructure that supports our business, including a disruption involving electronic communications or other services used by us or third parties with whom we conduct business, or directly affecting our headquarters, could have a material adverse impact on our ability to continue to operate our business without interruption and to protect us, insofar as is practicable, from the hazards of cybersecurity threats and vulnerabilities in accordance with applicable legal requirements and guidance. Our disaster recovery programs may not be sufficient to mitigate the harm that may result from such a disaster or disruption. In addition, insurance and other safeguards might only partially reimburse us for our losses, if at all. Although we are not currently aware of any cyber-attacks or other incidents that, individually or in the aggregate, have materially affected, or would reasonably be expected to materially affect, its operations or financial condition, there has been an increase in the frequency and sophistication of the cyber and security threats faced in the marketplace. Cyber-attacks and other security threats could originate from a wide variety of sources, including cyber criminals, nation state hackers, hacktivists and other outside or inside parties. We may be a target for attacks because, as a specialty finance company, we hold confidential and other sensitive information, including price information, about existing and potential investments. Further, we are dependent on third-party vendors for hosting hardware, software and data processing systems that we do not control. We also rely on third-party service providers for certain aspects of its business, including for certain information systems, technology and administration of our portfolio companies and compliance matters. While we rely on the cybersecurity strategy and policies implemented by the Investment Adviser, our reliance on the Investment Adviser and third- party service providers removes certain cybersecurity functions from outside of the
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Table of Contents Company’s immediate control, and cyber-attacks on the Investment Adviser, on us or on third-party service providers could adversely affect us, our business, and our reputation. The costs related to cyber-attacks or other security threats or disruptions may not be fully insured or indemnified by others, including by our third-party providers. As our reliance on computer hardware and software systems, data processing systems, and other technology has increased, so have the risks posed to such systems, both those the Investment Adviser controls and those provided by third-party vendors. Cyber-attacks may originate from a wide variety of sources, and while the Investment Adviser has implemented processes, procedures, and internal controls designed to mitigate cybersecurity risks and cyber-attacks, these measures do not guarantee that a cyber-attack will not occur or that our financial results, operations, or confidential information, personal, or other sensitive information will not be negatively impacted by such an incident, especially because the techniques of threat actors change frequently and are often not recognized until launched. The Investment Adviser relies on industry accepted security measures and technology to securely maintain confidential and proprietary information maintained on its information systems, as well as on policies and procedures to protect against the unauthorized or unlawful disclosure of confidential, personal, or other sensitive information. Although the Investment Adviser takes protective measures and endeavors to strengthen its computer systems, software, technology assets, and networks to prevent and address potential cyber-attacks, there can be no assurance that any of these measures prove effective. The Investment Adviser expects to be required to devote increasing levels of funding and resources, which may in part be allocated to us, to comply with evolving cybersecurity and privacy laws and regulations and to continually monitor and enhance its cybersecurity procedures and controls. In addition, we, the Investment Adviser, the Administrator, or their employees, if any, may also be the target of fraudulent emails or other targeted attempts to gain unauthorized access to confidential, personal, or other sensitive information. Many jurisdictions have also enacted laws requiring companies to notify individuals of data security breaches involving certain types of personal information, with which we and the Investment Adviser must comply in the event of a security incident or cyber-attack. The result of any security incident or cyber-attack may include disrupted operations, misstated or unreliable financial data, fraudulent transfers or requests for transfers of money, liability for stolen information (including personal information), investigations, misappropriation of assets, increased cybersecurity protection and insurance costs, litigation and damage to our business relationships, regulatory fines or penalties, or other adverse effects on our business, financial condition or results of operations. The Investment Adviser may be required to expend significant additional resources to modify its protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks related to cyber-attacks. Third parties with which we do business may also be sources of cybersecurity or other technological risk. We outsource certain functions and these relationships allow for the storage and processing of our information, as well as client, counterparty, employee, and borrower information. While we engage in actions to reduce our exposure resulting from outsourcing, ongoing threats may result in unauthorized access, loss, exposure, destruction, or other cybersecurity incident that affects our data, resulting in increased costs and other consequences as described above. In addition, cybersecurity is a top priority for global lawmakers and regulators around the world, and some jurisdictions have proposed or enacted laws requiring companies to notify regulators and individuals of data security breaches involving certain types of personal data. In particular, state and federal laws and regulations related to cybersecurity compliance continue to evolve and change, which may require substantial investments in new technology, software and personnel, which could affect the Company’s profitability. The SEC has adopted rules related to cybersecurity risk management for registered investment advisers, registered investment companies and BDCs. In addition, the SEC requires public companies to disclose material cybersecurity incidents on Form 8-K and provide periodic disclosure regarding their cybersecurity risk management, strategy, and governance in annual reports. In May 2024, the SEC adopted cybersecurity regulations as an amendment to Regulation S-P designed to establish a federal “minimum standard” for covered institutions to adopt an incident response program to govern their response to any unauthorized access of customer information. The adopted rule requires compliance as of December 2025 and applies to us as it includes investment companies and registered investment advisers. The amendments require implementation of written policies and procedures to safeguard customer records and information by imposing notification requirements to affected individuals whose sensitive customer information was or is reasonably likely to have been accessed or used without authorization and other requirements, such as review of incident response programs and having policies and procedures regarding compliance by third-party service providers. With the SEC particularly focused on cybersecurity, we expect increased scrutiny of our and our Investment Adviser’s policies and systems designed to manage cybersecurity risks and related disclosures. We also may face increased costs to comply with the new SEC rules, including our Investment Adviser’s increased costs for cybersecurity training and management, a portion of which may be allocated to us. In addition, the SEC has indicated in recent periods that one of its examination priorities for the Office of Compliance Inspections and Examinations is to continue to examine cybersecurity procedures and controls, including testing the implementation of these procedures and controls. These changes may also result in enhanced and unforeseen consequences for cyber-related breaches and incidents, which may further adversely affect the Company’s profitability. If we fail to comply with the relevant and increasing laws and regulations, we could suffer financial losses, a disruption of our businesses, liability to investors, regulatory intervention or reputational damage. Policies of remote working, whether by the Investment Adviser, the Administrator, us or by our or their respective service providers, could strain technology resources, introduce operational risks and otherwise heighten the risks described above. Remote
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Table of Contents 55 working environments may be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts. We, our Investment Adviser and our portfolio companies are subject to risks associated with cyber-attacks. Cybersecurity risks are exacerbated by the rapidly increasing volume of highly sensitive data, including our proprietary business information, personal information of the Investment Adviser’s employees, our investors and others, and other sensitive information that the Investment Adviser collects, processes, and stores in its data centers and on its networks or those of third-party service providers. The secure processing, maintenance, and transmission of this information are critical to our operations. There is a risk that encryption and other protective measures against cyber-attacks may be circumvented, particularly to the extent that new computing technologies increase the speed and computing power available. Even the most well-protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected. A significant actual or potential theft, loss, corruption, exposure, fraudulent use or misuse of investor or other personal information, proprietary business data or other sensitive information, whether by third parties or as a result of malfeasance by the Investment Adviser’s employees or otherwise, non-compliance with applicable contractual or other legal obligations regarding such data or intellectual property or a violation of applicable privacy and security policies with respect to such data could result in significant investigation, remediation and other costs, fines, penalties, litigation or regulatory actions against the Company and significant reputational harm, any of which could harm our business and results of operations. Cybersecurity risks require continuous and increasing attention and other resources from the Investment Adviser to, among other actions, identify and quantify these risks and upgrade and expand the Investment Adviser’s technologies, systems and processes to adequately address such risks. Such attention diverts time and other resources from other activities and there is no assurance that the Investment Adviser’s efforts will be effective. Cybersecurity incidents may adversely impact us and our stockholders. There is no guarantee that we, the Investment Adviser, and/or their respective service providers will be successful in protecting against cybersecurity incidents. We can be highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to pay distributions. Our business is highly dependent upon our and third parties’ communications and information systems. Any failure or interruption of those systems, including as a result of the termination of an agreement with any third-party service providers, could cause delays or other problems in our activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and adversely affect our business. There could be: • sudden electrical or telecommunications outages; • natural disasters such as earthquakes, tornadoes and hurricanes; • events arising from local or larger scale political or social matters, including terrorist acts; and • cyber-attacks. These events, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our common stock and our ability to pay distributions to our stockholders. Communications with stockholders may be delivered electronically and there may be certain costs and possible risks associated with such electronic delivery. Moreover, the Investment Adviser cannot provide any assurance that these communication methods are secure and will not be responsible for any computer viruses, problems or malfunctions resulting from the use of such communication methods.
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Table of Contents 56 Any inability or perceived inability to adequately address privacy concerns, or comply with applicable laws and regulations, even if unfounded, may result in adverse consequences to the Company. The Company and the Investment Adviser and its affiliates are subject to numerous laws and regulations in various jurisdictions relating to privacy and the storage, sharing, use, processing, disclosure and protection of information that the Company and the Investment Adviser hold. The SEC has adopted changes to Regulation S-P, which requires, among other things, that registered investment advisers notify affected individuals of a breach involving their personal information when there has been an incident that rises to the level of being a reportable breach. In general, these laws and regulations introduce many new obligations on the Company, the Investment Adviser and its affiliates and service providers and create new rights for parties who have given any of us their personal information, such as investors and others. The scope of data protection and privacy laws and regulations is rapidly evolving, and such laws and regulations are subject to differing interpretations. Any inability or perceived inability to adequately address privacy concerns or comply with applicable laws and regulations, even if unfounded, could result in regulatory and third-party liability, increased costs, disruption to the Company’s operations and reputational damage. Obligations to which the Company and/or the Investment Adviser and its affiliates are subject impose compliance costs and risks of penalties, which could increase significantly as such laws and regulations evolve globally. Moreover, as data protection and privacy laws and regulations continue to develop, it could be more difficult and/or more costly for the Company and/or the Investment Adviser and its affiliates to collect, store, use, transmit and process personal information. While the Company and the Investment Adviser and its affiliates take reasonable efforts to comply with data protection and privacy laws and regulations, it is possible that the Company and the Investment Adviser will not be able to accurately anticipate the ways in which regulators and courts will apply or interpret these laws, and there can be no assurance that Company and/or the Investment Adviser and its affiliates will not be subject to regulatory or individual legal action, including fines, in the event of a security incident, alleged non- compliance with applicable data protection and privacy laws or regulations or other claim that an individual’s privacy rights have been violated. Many regulators have indicated an intention to take more aggressive enforcement actions regarding data privacy matters, and private litigation resulting from such matters is increasing and resulting in large judgments and settlements. Our board of directors may change our investment objective, operating policies and strategies without prior notice or stockholder approval. Our board of directors has the authority to modify or waive certain of our operating policies and strategies without prior notice (except as required by the 1940 Act) and without stockholder approval. However, absent stockholder approval, we may not change the nature of our business so as to cease to be, or withdraw our election as a BDC. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results and the value of our stock. Nevertheless, the effects may adversely affect our business and impact our ability to make distributions. Our business is subject to increasingly complex corporate governance, public disclosure and accounting requirements that could adversely affect our business and financial results. We are subject to changing rules and regulations of federal and state government as well as the stock exchange on which our common stock is listed. These entities, including the Public Company Accounting Oversight Board, the SEC and the NASDAQ Stock Market, have issued a significant number of new and increasingly complex requirements and regulations over the course of the last several years and continue to develop additional regulations and requirements in response to laws enacted by Congress. Our efforts to comply with these existing requirements, or any revised or amended requirements, have resulted in, and are likely to continue to result in, an increase in expenses and a diversion of management’s time from other business activities.
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Table of Contents Changes in laws or regulations governing our operations may adversely affect our business. Changes in the laws or regulations, or the interpretations of the laws and regulations, which govern BDCs, RICs or non-depository commercial lenders could significantly affect our operations and our cost of doing business. We are subject to federal, state and local laws and regulations and are subject to judicial and administrative decisions that affect our operations, including our loan originations, maximum interest rates, fees and other charges, disclosures to portfolio companies, the terms of secured transactions, collection and foreclosure procedures, and other trade practices. If these laws, regulations or decisions change, or if we expand our business into jurisdictions that have adopted more stringent requirements than those in which we currently conduct business, then we may have to incur significant expenses in order to comply or we may have to restrict our operations. In addition, if we do not comply with applicable laws, regulations and decisions, then we may lose licenses needed for the conduct of our business and be subject to civil fines and criminal penalties, any of which could have a material adverse effect upon our business results of operations or financial condition. Regulators are also increasing scrutiny and implementing and considering regulation of the use of artificial intelligence technologies, including with respect to uses of artificial intelligence by investment advisers. While comprehensive U.S. regulation has not been enacted to date, various U.S. governmental agencies and departments, including the SEC and Department of the Treasury, have recently released reports or otherwise indicated interest in assessing risks relating to uses of artificial intelligence by businesses such as ours. Some specific laws governing artificial intelligence have already been passed in certain U.S. states and in the European Union. We cannot predict what, if any, effects this may have on our business or the nature of future regulations. Changes to United States tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us. There has been ongoing discussion and commentary regarding potential significant changes to United States trade policies, treaties and tariffs. The United States has enacted and proposed to enact significant new tariffs. Additionally, President Trump has directed various federal agencies to further evaluate key aspects of United States trade policy, and there continues to exist significant uncertainty about the future relationship between the United States and other countries with respect to the trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies’ access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us. Our Investment Adviser can resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations. Our Investment Adviser has the right, under the Advisory Agreement, to resign at any time upon 60 days written notice, whether we have found a replacement or not. If our Investment Adviser resigns, we may not be able to find a new investment adviser or hire internal management with similar experience and ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions are likely to be adversely affected and the market price of our shares may decline. In addition, the coordination of our internal management and investment activities is likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the experience possessed by our Investment Adviser and its affiliates. Even if we are able to retain comparable management, whether internal or external, the integration of such management and their lack of familiarity with our investment objective may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations. General Risk Factors Volatility or a prolonged disruption in the credit markets could materially damage our business. We are required to record our assets at fair value, as determined in good faith by our board of directors, in accordance with our valuation policy. As a result, volatility in the capital markets may have a material adverse effect on our valuations and our net asset value, even if we hold investments to maturity. Volatility or dislocation in the capital markets may depress our stock price below our net asset value per share and create a challenging environment in which to raise equity and debt capital. These conditions could continue for a prolonged period of time or worsen in the future. While these conditions persist, we and other companies in the financial services sector may have to access, if available, alternative markets for debt and equity capital. Equity capital may be difficult to raise because, subject to some limited exceptions which apply to us, as a BDC we are generally not able to issue additional shares of our common stock at a price less than net asset value without first obtaining approval for such issuance from our stockholders and our independent directors. Any offering of our common stock that requires stockholder approval must occur, if at all,
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Table of Contents within one year after receiving such stockholder approval. In addition, our ability to incur indebtedness (including by issuing preferred stock) is limited by applicable regulations such that our asset coverage, as defined in the 1940 Act, must equal at least 150% immediately after each time we incur indebtedness. The debt capital that will be available, if at all, may be at a higher cost and on less favorable terms and conditions in the future. Any inability to raise capital could have a negative effect on our business, financial condition and results of operations. Additionally, our ability to incur indebtedness is limited by the asset coverage ratio for a BDC, as defined under the 1940 Act. Declining portfolio values negatively impact our ability to borrow additional funds because our net asset value is reduced for purposes of the asset coverage ratio. If the fair value of our assets declines substantially, we may fail to maintain the asset coverage ratio stipulated by the 1940 Act, which could, in turn, cause us to lose our status as a BDC and materially impair our business operations. A lengthy disruption in the credit markets could also materially decrease demand for our investments. The significant disruptions in the capital markets experienced in the past have had, and in the future may have, a negative effect on the valuations of our investments and on the potential for liquidity events involving our investments. The debt capital that may be available to us in the future may be at a higher cost and have less favorable terms and conditions than those currently in effect. If our financing costs increase and we have no increase in interest income, then our net investment income will decrease. A prolonged inability to raise capital may require us to reduce the volume of investments we originate and could have a material adverse impact on our business, financial condition and results of operations. This may also increase the probability that other structural risks will negatively impact us. These situations may arise due to circumstances that we may be unable to control, such as a lengthy disruption in the credit markets, a severe decline in the value of the U.S. dollar, a sharp economic downturn or recession or an operational problem that affects third parties or us, and could materially damage our business, financial condition and results of operations. Global economic, regulatory and market conditions may adversely affect our business, results of operations and financial condition, including our revenue growth and profitability. We and our portfolio companies are subject to regulation by laws at the U.S. federal, state and local levels. These laws and regulations, as well as their interpretation, could change from time to time, including as the result of interpretive guidance or other directives from the U.S. President and others in the executive branch, and new laws, regulations and interpretations could also come into effect. Any such new or changed laws or regulations could have a material adverse effect on our business, and political uncertainty could increase regulatory uncertainty in the near term. The effects of legislative and regulatory proposals directed at the financial services industry or affecting taxation, could negatively impact the operations, cash flows or financial condition of us and our portfolio companies, impose additional costs on us or our portfolio companies, intensify the regulatory supervision of us or our portfolio companies or otherwise adversely affect our business or the business of our portfolio companies. In addition, if we do not comply with applicable laws and regulations, we could lose any licenses that we then hold for the conduct of business and could be subject to civil fines and criminal penalties. Over the last several years, there also has been an increase in regulatory attention to the extension of credit outside of the traditional banking sector, raising the possibility that some portion of the non-bank financial sector will be subject to new regulation. While it cannot be known at this time whether any regulation will be implemented or what form it will take, increased regulation of non-bank credit extension could negatively impact our operations, cash flows or financial condition, impose additional costs on us, intensify the regulatory supervision of us or otherwise adversely affect our business, financial condition and results of operations. Although we cannot predict the impact, if any, of these changes to our business, they could adversely affect our business, financial condition, operating results and cash flows. Until we know what policy changes are made and how those changes impact business and the business of our competitors over the long term, we will not know if, overall, it will benefit from them or be negatively affected by them. Deterioration in the economic conditions in the Eurozone and other regions or countries globally and the resulting instability in global financial markets may pose a risk to our business. Financial markets have been affected at times by a number of global macroeconomic events, including the following: large sovereign debts and fiscal deficits of several countries in Europe and in emerging markets jurisdictions, levels of non-performing loans on the balance sheets of European banks, the effect of the United Kingdom leaving the European Union, and instability in the Chinese capital markets. Various social and political circumstances in the U.S. and around the world (including wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics) may also contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide. Such events, including rising trade tensions between the United States and China, other uncertainties regarding actual and potential shifts in U.S. and foreign, trade, economic and other policies with other countries, the political and geopolitical developments in Venezuela, the large-scale invasion of Ukraine by Russia that began in February 2022 and resulting sanctions or other restrictive actions that the
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Table of Contents 59 United States and other countries have imposed against Russia, an inflationary environment and the ongoing tensions in the Middle East (including the internal unrest in Iran) and between China and Taiwan, could adversely affect our business, financial condition or results of operations. In addition, social unrest, changes regarding immigration and work permit policies and other political and security concerns may not abate, which may cause the debt and equity capital markets and our business to be adversely affected both within and outside of regions experiencing ongoing conflicts. Additionally, the Republican Party currently controls both the executive and legislative branches of government, which increases the likelihood that legislation may be adopted that could significantly affect the regulation of U.S. financial markets. Regulatory changes could result in greater competition from banks and other lenders with which we compete for lending and other investment opportunities. The United States may also potentially withdraw from or renegotiate various trade agreements and take other actions that would change current trade policies of the United States. Changes in trade policies, including the imposition of new tariffs or increases in existing tariffs between the United States, Mexico, Canada, China or other countries, or reactionary measures in response thereto, including retaliatory tariffs, legal challenges, or currency manipulation, could adversely affect the market conditions in which we and our portfolio companies operate. These factors may affect the level and volatility of credit and securities prices and the liquidity and value of our investments, and we and our portfolio companies may not be able to successfully manage our exposure to these conditions. This could in turn materially reduce our net asset value and dividends and adversely affect our financial prospects and condition. In addition, numerous structural dynamics and persistent market trends have exacerbated volatility and market uncertainty. Concerns over significant volatility in the commodities markets, sluggish economic expansion in foreign economies, including continued concerns over growth prospects in China and emerging markets, growing debt loads for certain countries, uncertainty about the consequences of the U.S. and other governments withdrawing monetary stimulus measures, government agency closures, prolonged government shutdowns and speculation about a possible recession all highlight the fact that economic conditions remain unpredictable and volatile. In recent periods, geopolitical tensions, including between the U.S. and China, have escalated. Further escalation of such tensions and the related imposition of sanctions or other trade barriers may negatively impact the rate of global growth, particularly in China, where growth has slowed. Moreover, there is a risk of both sector-specific and broad-based volatility, corrections and/or downturns in the equity and credit markets. A number of factors have had and may continue to have an adverse impact on credit markets in particular. In 2025, the weakness and the uncertainty regarding the stability of the oil and gas markets resulted in a tightening of credit across multiple sectors. While the Federal Reserve cut its benchmark rate in the third and fourth quarters of 2024 and 2025 and indicated that there may be additional rate cuts in 2026, future reductions to benchmark rates are not certain. Additionally, there can be no assurance that the Federal Reserve will not return to making upwards adjustments to the federal funds rate in the future. These developments, along with the United States government’s credit and deficit concerns, global economic uncertainties and market volatility, could cause interest rates to be volatile, which may negatively impact our ability to access the debt markets and capital markets on favorable terms. Events outside of our control, including public health crises, could negatively affect our portfolio companies and our results of our operations. Periods of market volatility have occurred and could continue to occur in response to pandemics or other events outside of our control. These types of events have adversely affected and could continue to adversely affect operating results for us and for our portfolio companies. For example, the COVID-19 pandemic adversely impacted global commercial activity and contributed to significant volatility in the equity and debt markets. The COVID-19 pandemic and restrictive measures taken to contain or mitigate its spread caused, and any similar measures in the future may cause, business shutdowns, or the re-introduction of business shutdowns, cancellations of events and restrictions on travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain interruptions, labor shortages, increased inflationary pressure and overall economic and financial market instability both globally and in the United States. Many states, including those in which we and the portfolio companies in which we invest operate, have previously issued orders requiring the closure of, or certain restrictions on the operation of, certain businesses. We and our portfolio companies may be materially adversely affected if similar measures are taken in the future in response to public health crises. The continued uncertainty related to the sustainability and pace of economic recovery in the U.S. and globally could have a negative impact on our business. Our business is directly influenced by the economic cycle, and could be negatively impacted by a downturn in economic activity in the U.S. as well as globally. Fiscal and monetary actions taken by U.S. and non-U.S. government and regulatory authorities could have a material adverse impact on our business. To the extent uncertainty regarding the U.S. or global economy negatively impacts consumer confidence and consumer credit factors, our business, financial condition and results of operations could be adversely affected. Moreover, Federal Reserve policy, including with respect to certain interest rates and the decision to end its quantitative
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Table of Contents 60 easing policy, along with the general policies of the current presidential administration, may also adversely affect the value, volatility and liquidity of dividend-and interest-paying securities. Market volatility, periods of rising interest rates, and/or a return to unfavorable economic conditions could adversely affect our business.
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Table of Contents 61 There is uncertainty surrounding potential legal, regulatory and policy changes by the current presidential administration in the United States that may directly affect financial institutions and the global economy. The current administration has called for significant changes to U.S. trade, healthcare, immigration, foreign and government regulatory policy. In this regard, there is significant uncertainty with respect to legislation, regulation and government policy at the federal level, as well as the state and local levels. Recent events have created a climate of heightened uncertainty and introduced new and difficult-to-quantify macroeconomic and political risks with potentially far-reaching implications. There has been a corresponding meaningful increase in the uncertainty surrounding interest rates, inflation, foreign exchange rates, trade volumes and fiscal and monetary policy. To the extent the U.S. Congress or the current administration implements changes to U.S. policy, those changes may impact, among other things, the U.S. and global economy, international trade and relations, unemployment, immigration, corporate taxes, healthcare, the U.S. regulatory environment, inflation and other areas, which could adversely impact the Company and its stockholders. Although we cannot predict the impact, if any, of these changes to our business, they could adversely affect our business, financial condition, operating results and cash flows. Until we know what policy changes are made and how those changes impact our business and the business of our competitors over the long term, we will not know if, overall, we will benefit from them or be negatively affected by them. The alternative reference rates that have replaced LIBOR in our credit arrangements and other financial instruments may not yield the same or similar economic results as LIBOR over the life of such transactions. The London Interbank Offered Rate (“LIBOR”) was an index rate that historically was widely used in lending transactions and was a common reference rate for setting the floating interest rate on private loans. LIBOR was typically the reference rate used in floating-rate loans extended to our portfolio companies. The ICE Benchmark Administration (“IBA”) (the entity that is responsible for calculating LIBOR) ceased providing overnight, one, three, six and twelve month USD LIBOR tenors on June 30, 2023. In addition, the United Kingdom’s Financial Conduct Authority (“FCA”), which oversees the IBA, now prohibits entities supervised by the FCA from using LIBORs, including USD LIBOR, except in very limited circumstances. In the United States, the Secured Overnight Financing Rate (“SOFR”) is the preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. SOFR is published by the Federal Reserve Bank of New York each U.S. Government Securities Business Day, for transactions made on the immediately preceding U.S. Government Securities Business Day. Alternative reference rates that may replace LIBOR, including SOFR for USD transactions, may not yield the same or similar economic results as LIBOR over the lives of such transactions. The Company’s loans reference the forward-looking term rate published by CME Group Benchmark Administration Limited based on SOFR (“CME Term SOFR”) or CME Term SOFR plus a fixed spread adjustment. CME Term SOFR rates are forward-looking rates that are derived by compounding projected overnight SOFR rates over one, three, and six months taking into account the values of multiple consecutive, executed, one-month and three-month CME Group traded SOFR futures contracts and, in some cases, over-the- counter SOFR Overnight Indexed Swaps as an indicator of CME Term SOFR reference rate values. CME Term SOFR and the inputs on which it is based are derived from SOFR. Since CME Term SOFR is a relatively new market rate, there will likely be no established trading market for credit agreements or other financial instruments when they are issued, and an established market may never develop or may not be liquid. Market terms for instruments referencing CME Term SOFR rates may be lower than those of later-issued CME Term SOFR indexed instruments. Similarly, if CME Term SOFR does not prove to be widely used, the trading price of instruments referencing CME Term SOFR may be lower than those of instruments indexed to indices that are more widely used. Further, the composition and characteristics of SOFR and CME Term SOFR are not the same as those of LIBOR. Even with the application of a fixed spread adjustment, LIBOR and CME Term SOFR will not have the same composition and characteristics, and there can be no assurance that the replacement rate, as so adjusted, will be a direct substitute for LIBOR. There can be no guarantee that SOFR will not be discontinued or fundamentally altered in a manner that is materially adverse to the interests of investors in loans referencing SOFR. If the manner in which SOFR or CME Term SOFR is calculated is changed, that change may result in a reduction of the amount of interest payable on such loans and the trading prices of the SOFR Loans. In addition, there can be no guarantee that loans referencing SOFR or CME Term SOFR will continue to reference those rates until maturity or that, in the future, our loans will reference benchmark rates other than CME Term SOFR. Should any of these events occur, our loans, and the yield generated thereby, could be affected. Specifically, the anticipated yield on our loans may not be fully realized and our loans may be subject to increased pricing volatility and market risk.
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Table of Contents Inflation and a rising interest rate environment may adversely affect the business, results of operations and financial condition of us and our portfolio companies. In recent years, the macroeconomic environment has experienced uncertainty related to evolving tariff and trade policies, geopolitical tensions, inflationary pressures, labor market shortages and disputes, changes in interest rates, supply chain disruptions, foreign currency fluctuations, and periods of volatility in global capital markets. The risks associated with the Company’s and our portfolio companies’ businesses are more severe during periods of economic slowdown or recession. Any disruptions in the capital markets, as a result of inflation or otherwise, may increase the spread between the yields realized on risk-free and higher risk securities and can result in illiquidity in parts of the capital markets, significant write-offs in the financial sector and re-pricing of credit risk in the broadly syndicated market. These and any other unfavorable economic conditions could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. In addition, market conditions (including inflation, supply chain issues and decreased consumer demand) have adversely impacted, and could in the future further impact, the operations of certain of our portfolio companies. If the financial results of middle-market companies, like those in which we invest, experience deterioration, it could ultimately lead to difficulty in meeting debt service requirements and an increase in defaults, and further deterioration in market conditions will further depress the outlook for those companies. Further, adverse economic conditions decreased and may in the future decrease the value of collateral securing some of our loans and the value of our equity investments. Such conditions have required and may in the future require us to modify the payment terms of our investments, including changes in PIK interest provisions and/or cash interest rates. The performance of certain of our portfolio companies has been, and in the future may be, negatively impacted by these economic or other conditions, which can result in our receipt of reduced interest income from our portfolio companies and/or realized and unrealized losses related to our investments, and, in turn, may adversely affect distributable income and have a material adverse effect on our results of operations. Inflation may cause the real value of our investments to decline. Inflation risk results from the variation in the value of cash flows from a security due to inflation, as measured in terms of purchasing power. We are exposed to inflation risk with respect to any fixed rate investments that we make, if any, because the interest rate the issuer has to pay us is fixed for the life of the security. To the extent that interest rates reflect the expected inflation rate, floating rate loans have a lower level of inflation risk. Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults or non- performance by financial institutions or transactional counterparties, could have a material adverse effect on us, the Investment Adviser and our portfolio companies. Cash not held in custody accounts and held by us, our Investment Adviser and by our portfolio companies in non-interest-bearing and interest-bearing operating accounts could, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. If such banking institutions were to fail, we, our Investment Adviser, or our portfolio companies could lose all or a portion of those amounts held in excess of such insurance limits. In addition, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems, which could adversely affect our, our Investment Adviser’s and our portfolio companies’ business, financial condition, results of operations, or prospects. Although we and our Investment Adviser assess our and our portfolio companies’ banking and financing relationships as we believe necessary or appropriate, our and our portfolio companies’ access to funding sources and other credit arrangements in amounts adequate to finance or capitalize current and projected future business operations could be significantly impaired by factors that affect the financial institutions with which we, our Investment Adviser or our portfolio companies have arrangements directly or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which we, our Investment Adviser or our portfolio companies have financial or business relationships, but could also include factors involving financial markets or the financial services industry generally. In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us, our Investment Adviser, or our portfolio companies to acquire financing on acceptable terms or at all.
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Table of Contents 63 We are subject to risks associated with artificial intelligence and machine learning technology. Recent technological advances in artificial intelligence and machine learning technology (“Machine Learning Technology”) pose risks to us and our portfolio companies. We and our portfolio companies could be exposed to the risks of Machine Learning Technology if third-party service providers or any counterparties use Machine Learning Technology in their business activities. We and the Investment Adviser are not in a position to control the use of Machine Learning Technology in third-party products or services. Use of Machine Learning Technology could include the input of confidential information in contravention of applicable policies, contractual or other obligations or restrictions, resulting in such confidential information becoming part accessible by other third-party Machine Learning Technology applications and users. Machine Learning Technology and its applications continue to develop rapidly, and we cannot predict the risks that may arise from such developments. Machine Learning Technology is generally highly reliant on the collection and analysis of large amounts of data, and it is not possible or practicable to incorporate all relevant data into the model that Machine Learning Technology utilizes to operate. Certain data in such models will inevitably contain a degree of inaccuracy and error and could otherwise be inadequate or flawed, which would be likely to degrade the effectiveness of Machine Learning Technology. To the extent we or our portfolio companies are exposed to the risks of Machine Learning Technology use, any such inaccuracies or errors could adversely impact us or our portfolio companies. Technological innovations and industry disruptions, including artificial intelligence, could disrupt the markets in which we operate and subject us to increased competition, legal and regulatory risks and compliance costs. Technological innovations have disrupted traditional approaches in multiple industries and can permit younger companies to achieve success and in the process disrupt markets and market practices. We can provide no assurance that new businesses and approaches will not be created that would compete with us and/or our portfolio companies or alter the market practices in which SLR Capital Partners and its affiliates and us have been designed to function within and on which we depend on for our investment return. New approaches could damage our investments, disrupt the market in which we operate and subject us to increased competition, which could materially and adversely affect our business, financial condition and results of investments. Artificial intelligence, including machine learning technology and generative artificial intelligence, is rapidly evolving. While the full extent of current or future risks related thereto is not possible to predict, artificial intelligence could significantly disrupt the business models and markets in which we operate and subject us to increased competition, legal and regulatory risks and compliance costs, any of which could have a material adverse effect on our or our portfolio companies’ business, financial condition and results of operations. We, our Investment Adviser and our Administrator may use and may plan to expand our use of artificial intelligence tools and technologies in the operation of our business. In addition, certain of our portfolio companies use and may plan to expand their use of artificial intelligence tools and technologies in the operation of their businesses. These uses come with potential risks, including, but not limited to, generation of inaccurate results, misuse or disclosures of confidential information, infringement of third-party intellectual property rights, potential cybersecurity vulnerabilities, reputational risk, and regulatory burdens. Artificial intelligence models may create outputs that are flawed, inaccurate, biased, or that infringe or misappropriate intellectual property of third parties. The models may also be subject to new or different modes of cyber attacks, including prompt injection attacks, and such attacks may be able to circumvent our cybersecurity tools and processes. To the extent we, our Investment Adviser, our Administrator, or any of our portfolio companies rely on such technologies, these risks could negatively impact us or our portfolio companies. There is also a risk that artificial intelligence tools or applications may be misused by employees and/or third parties engaged by us, our Investment Adviser or Administrator, or by our portfolio companies. For example, an employee of our Investment Adviser may input confidential information, including material non- public information, trade secrets, or personal information, into artificial intelligence technologies in a manner that results in such information becoming part of a dataset that is accessible by third-party artificial intelligence applications and users, including our competitors. Further, we, our Investment Adviser or Administrator or our portfolio companies may not be able to control how third-party artificial intelligence technologies that we or they choose to use are developed or maintained, or how data we or they input is used or disclosed, even where contractual protections with respect to these matters have been sought. The misuse or misappropriation of our data could have an adverse impact on our reputation and could subject us to legal and regulatory investigations and/or actions. The misuse or misappropriation of data of any of our portfolio companies could have an adverse impact on such businesses reputation and could subject such portfolio company to legal and regulatory investigations and/or actions. We or our portfolio companies may also be exposed to competitive risks related to the adoption of artificial intelligence or other new technologies by others within our respective industries. If our or our portfolio companies’ competitors are more successful than us or our portfolio companies in the use of artificial intelligence or development of services or products based on artificial intelligence, or we or our portfolio companies do so at a slower pace than others, we or our portfolio companies may be at a competitive disadvantage.
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Table of Contents In addition, our or our portfolio companies’ investments in technology systems and artificial intelligence may not deliver the benefits we or they expect, which could be costly for our or their respective businesses. Finally, regulations related to artificial intelligence may also impose on us or our portfolio companies certain obligations and costs related to monitoring and compliance, and we or they could be subject to regulatory actions if we or they are deemed not to have complied. We are subject to risks related to corporate social responsibility. Our business (including that of our portfolio companies) faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. A variety of organizations measure the performance of companies on ESG topics, and the results of these assessments are widely publicized. Certain institutional investors may consider such ESG ratings and measures in making their investment decisions. If our ESG ratings or performance do not meet the standards set by such investors or our stockholders, they may choose to exclude our securities from their investments. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, including, but not limited to, human rights, climate change, environmental stewardship, support for local communities, corporate governance and transparency or consideration of ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, our relationship with existing and future portfolio companies, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations. However, regional and investor specific sentiment may differ in what constitutes a material positive or negative ESG corporate practice. There is no guarantee that the Company’s ESG and sustainability practices will uniformly fit every investor’s definition of best practices for all environmental, social and governance considerations across geographies and investor types. At the same time, in recent years “anti-ESG” sentiment has also gained momentum across the U.S., with several states, the executive branch and federal agencies, and Congress having proposed, enacted or indicated an intent to pursue “anti-ESG” policies, legislation or issued related legal opinions and pursued related investigations and litigation. If investors subject to “anti-ESG” legislation view our Investment Adviser’s responsible investing or ESG practices as being in contradiction of such “anti-ESG” policies, legislation or legal opinions, such investors may not invest in us and it could negatively impact the price of our common stock. In addition, corporate diversity, equity and inclusion (“DEI”) practices have recently come under increasing scrutiny. Further, some groups and federal and state officials have asserted that the U.S. Supreme Court’s decision striking down race-based affirmative action in higher education in June 2023 should be analogized to private employment matters and private contract matters. Several media campaigns and cases alleging discrimination based on such arguments have been initiated since the decision and in January 2025, the Trump Administration signed a number of Executive Orders focused on DEI, which caution the private sector to end “illegal DEI discrimination and preferences” and preview upcoming compliance investigations of private entities with respect to DEI initiatives, including publicly traded companies. Agencies across the federal government, including the Department of Justice, the Federal Communications Commission, and the Equal Employment Opportunity Commission, have been focusing on DEI-related investigations and enforcement. It is uncertain how the interpretation, application, and enforcement of laws (including U.S. state and federal nondiscrimination laws), policies, and public sentiment related to DEI will evolve, and it may become increasingly challenging to establish global DEI-related policies and programs that meet the varied laws, policies, and norms of different jurisdictions. If we do not successfully manage expectations across varied stakeholder interests, it could erode stakeholder trust, impact our reputation and constrain our investment opportunities. Such scrutiny of both ESG and DEI related practices could expose our Investment Adviser to the risk of litigation, investigations or challenges by federal or state authorities or result in reputational harm. Compliance with any new ESG laws or regulations increases our regulatory burden and could result in increased legal, accounting and compliance costs, make some activities more difficult, time-consuming and costly, affect the manner in which we or our portfolio companies conduct our businesses and adversely affect our profitability. The effect of global climate change may impact the operations of our portfolio companies. There may be evidence of global climate change. Climate change creates physical and financial risk and some of our portfolio companies may be adversely affected by climate change. For example, the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent that weather conditions are affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies’ financial condition, through decreased revenues. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions. These events and the disruptions they cause, alone or in combination, could also lead to increased costs of insurance for us and/or our portfolio companies. Energy companies could also be affected by the potential for lawsuits against or taxes or other regulatory costs imposed on greenhouse gas emitters, based on links drawn between greenhouse gas emissions and climate change.
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Table of Contents 65 We cannot predict how changes in tax law will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business. Legislative or other actions relating to taxes could have a negative effect on us. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Treasury Department. New legislation and any other tax law developments, including new or revised U.S. Treasury regulations, administrative interpretations or court decisions, could negatively and perhaps retroactively affect our ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences to us and our stockholders, or could have other adverse consequences. Investors are urged to consult with their tax advisor regarding tax legislative, regulatory, or administrative developments and proposals and their potential effect on an investment in our common stock. Uncertainty about U.S. government initiatives could negatively impact our business, financial condition and results of operations. The U.S. government has recently called for significant changes to U.S. trade, healthcare, immigration, foreign and government regulatory policy. In this regard, there is significant uncertainty with respect to legislation, regulation and government policy at the federal level, as well as the state and local levels. Recent events have created a climate of heightened uncertainty and introduced new and difficult-to-quantify macroeconomic and political risks with potentially far-reaching implications. There has been a corresponding meaningful increase in the uncertainty surrounding interest rates, inflation, foreign exchange rates, trade volumes and fiscal and monetary policy. To the extent the U.S. Congress or the current administration implements changes to U.S. policy, those changes may impact, among other things, the U.S. and global economy, international trade and relations, unemployment, immigration, corporate taxes, healthcare, the U.S. regulatory environment, inflation and other areas. A particular area identified as subject to potential change, amendment or repeal includes the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the “Dodd-Frank Act,” including the Volcker Rule and various swaps and derivatives regulations, credit risk retention requirements and the authorities of the Federal Reserve, the Financial Stability Oversight Council and the SEC. Given the uncertainty associated with the manner in which and whether the provisions of the Dodd-Frank Act will be implemented, repealed, amended, or replaced, the full impact such requirements will have on our business, results of operations or financial condition is unclear. The changes resulting from the Dodd-Frank Act or any changes to the regulations already implemented thereunder may require us to invest significant management attention and resources to evaluate and make necessary changes in order to comply with new statutory and regulatory requirements. Failure to comply with any such laws, regulations or principles, or changes thereto, may negatively impact our business, results of operations or financial condition. While we cannot predict what effect any changes in the laws or regulations or their interpretations would have on us as a result of recent financial reform legislation, these changes could be materially adverse to us and our stockholders.
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Table of Contents Item 1B. Unresolved Staff Comments None. Item 1C. Cybersecurity Risk Management and Strategy We recognize the importance of assessing, identifying, and managing material risks from cybersecurity threats, as such term is defined in Item 106(a) of Regulation S-K. These risks include, among other things, operational risks, financial loss, intellectual property theft, fraud, extortion, loss of sensitive data, harm to individuals including stockholders, violation of privacy or security laws, increased costs associated with mitigation of damages and remediation, and other legal and reputational risks. We have implemented several cybersecurity processes and controls to aid in our efforts to assess, identify, and manage such material risks. We rely on the Investment Adviser’s enterprise-wide cybersecurity program to protect our information, including due oversight of the cybersecurity programs of our key service providers and processes for the assessment, identification, and management of material risks from cybersecurity threats, including those associated with the use of third-party service providers. The Investment Adviser considers such cybersecurity threats as part of its broader risk management framework, and its cybersecurity program is designed to, among other things, protect us, insofar as is practicable, from the hazards of cybersecurity threats and vulnerabilities in accordance with applicable legal requirements and guidance. The Investment Adviser collaborates with third-party subject-matter experts, as necessary, to identify and assess material cybersecurity threat risks and evaluate and test its cybersecurity protections, including through continuous network and endpoint monitoring, employee anti-phishing training, vulnerability assessments, and penetration testing to inform the Investment Adviser’s risk identification and assessment. The Investment Adviser also performs due diligence reviews on third parties that have access to our systems or data, or facilities that house such systems or data, and continually monitors cybersecurity threat risks identified through such diligence. Together with management, the Board has designated an Information Security Group (“ISG”) to monitor issues relating to cybersecurity and work with the Investment Adviser’s third-party Information Technology (“IT”) service provider to evaluate potential cyber risk vulnerabilities. While its composition may change over time, the ISG currently consists of our Chief Financial Officer and Chief Compliance Officer. The ISG, together with the Investment Adviser’s third-party IT service provider, annually reviews the cyber risks applicable to our business and the measures established by the Investment Adviser and other service providers to protect against those risks and recommends changes or enhancements, as necessary. The Investment Adviser’s management and the third-party IT service provider also monitor the Investment Adviser’s network to identify internal and external cybersecurity threats and vulnerabilities in order to determine any steps that should be taken to protect information stored on the Investment Adviser’s network and promptly inform the ISG of any identified cybersecurity threats or vulnerabilities. The ISG also makes inquiries of the Investment Adviser’s management and the third-party IT service provider regarding such efforts. Material Impact of Cybersecurity Risks The potential impact of risks from cybersecurity threats on us are assessed on an ongoing basis, and how such risks could materially affect our business strategy, operational results, or financial condition are regularly evaluated. During the reporting period, we did not identify any risks from cybersecurity threats, including as a result of previous cybersecurity incidents, that we believe have materially affected, or are reasonably likely to materially affect, our business strategy, operational results, or financial condition. We further describe cybersecurity risks that we face in “The failure in cyber security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively” and “We, our Investment Adviser and our portfolio companies are subject to risks associated with cyber-attacks” under “Item 1A. Risk Factors” of this annual report on Form 10-K. Governance The Board has overall responsibility for risk oversight, including risks related to cybersecurity threats. The Board is aware of the critical nature of managing these risks and has sought to establish oversight mechanisms to ensure effective governance in managing risks associated with cybersecurity and appropriate review of the protections provided to us by the Investment Adviser. In conducting its duties, the ISG relies on the experience and expertise of the Investment Adviser’s third-party IT service provider, which includes, among other things, over two decades of managing network security for companies, a track record of collaborating with management teams on incident response and threat mitigation, and, through various partnerships, vetting and implementing cutting-edge cybersecurity technologies. The ISG will provide a report, at least annually, to the entire Board regarding our cybersecurity threat risk management and strategy processes covering topics such as data security posture, results from third-party assessments, progress towards pre-determined risk mitigation-related goals, the Investment Adviser’s incident response plan, and
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Table of Contents 67 cybersecurity threat risks or incidents and developments, as well as the steps the Investment Adviser’s management has taken to respond to and mitigate such risks. The Investment Adviser’s incident response plan provides guidelines for responding to cyber incidents and facilitates coordination across multiple operational functions of the Investment Adviser. The incident response plan includes notification to the ISG and, depending on its nature, escalation to the Board, if appropriate. The Board is also encouraged to engage with the ISG on cybersecurity topics at other times, and material cybersecurity threats and risks are also considered by the Board in relation to other important matters that come before it. Item 2. Properties Our offices are located at 500 Park Avenue, New York, New York 10022, and are provided by SLR Capital Management in accordance with the terms of the Administration Agreement. We believe that our office facilities are suitable and adequate for our business as it is presently conducted. Item 3. Legal Proceedings We and our consolidated subsidiaries are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us or our consolidated subsidiaries. From time to time, we and our consolidated subsidiaries may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that any such proceedings will have a material effect upon our financial condition or results of operations. Item 4. Mine Safety Disclosures Not applicable.
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Table of Contents 68 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Common Stock Our common stock is traded on the NASDAQ Global Select Market under the symbol “SLRC”. The following table sets forth, for each fiscal quarter during the last two fiscal years, the net asset value (“NAV”) per share of our common stock, the high and low closing sales prices for our common stock, such sales prices as a percentage of NAV per share and distributions per share. Price Range Premium or(Discount)of High Closing Premium or(Discount) ofLow ClosingPrice to Declared NAV High Low Price to NAV NAV Distributions Fiscal 2025 Fourth Quarter $ 18.26 $ 16.15 $ 13.96 (11.6)% (23.5)% $ 0.41 Third Quarter 18.21 16.80 15.27 (7.7) (16.1) 0.41 Second Quarter 18.19 17.01 14.19 (6.5) (22.0) 0.41 First Quarter 18.16 17.82 16.18 (1.9) (10.9) 0.41 Fiscal 2024 Fourth Quarter $ 18.20 $ 16.86 $ 14.90 (7.4)% (18.1)% $ 0.41 Third Quarter 18.20 16.25 14.66 (10.7) (19.5) 0.41 Second Quarter 18.20 16.70 14.80 (8.2) (18.7) 0.41 First Quarter 18.19 15.76 14.76 (13.4) (18.9) 0.41 NAV per share is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low sales prices. The net asset values shown are based on outstanding shares at the end of each period. Calculated as of the respective high or low closing price divided by NAV and subtracting 1. Represents the cash distribution for the specified quarter. On February 20, 2026, the last reported sales price of our common stock was $14.86 per share. As of February 20, 2026, we had 20 stockholders of record. Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that our shares of common stock will trade at a discount from net asset value or at premiums that are unsustainable over the long term is separate and distinct from the risk that our net asset value will decrease. Since our IPO on February 9, 2010, our shares of common stock have traded at both a discount and a premium to the net assets attributable to those shares. As of February 20, 2026, our shares of common stock traded at a discount equal to approximately 18.6% of the net assets attributable to those shares based upon our net asset value as of December 31, 2025. It is not possible to predict whether the shares offered will trade at, above, or below net asset value. Distributions Tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of the applicable calendar year. Future quarterly distributions, if any, will be determined by the Board. We expect that our distributions to stockholders will generally be from accumulated net investment income, from net realized capital gains or from non-taxable return of capital, if any, as applicable. We have elected to be taxed as a RIC under Subchapter M of the Code. To maintain our RIC tax treatment, we must distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In addition, although we currently intend to distribute realized net capital gains (i.e., net long- term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash distributions. (1) (2) (2) (3) (1) (2) (3)
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Table of Contents 69 We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, due to the asset coverage test applicable to us as a business development company, we may in the future be limited in our ability to make distributions. Also, our credit facilities may limit our ability to declare distributions if we default under certain provisions. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of the tax benefits available to us as a regulated investment company. In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as contractual payment- in-kind income, which represents contractual income added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a regulated investment company. With respect to the distributions to stockholders, income from origination, structuring, closing and certain other upfront fees associated with investments in portfolio companies are treated as taxable income and accordingly, distributed to stockholders. We cannot assure stockholders that they will receive any distributions at a particular level. All distributions declared in cash payable to stockholders that are participants in our dividend reinvestment plan are generally automatically reinvested in shares of our common stock. As a result, stockholders that do not participate in the dividend reinvestment plan may experience dilution over time. Stockholders who do not elect to receive distributions in shares of common stock may experience accretion to the net asset value of their shares if our shares are trading at a premium and dilution if our shares are trading at a discount. The level of accretion or discount would depend on various factors, including the proportion of our stockholders who participate in the plan, the level of premium or discount at which our shares are trading and the amount of the distribution payable to a stockholder. Recent Sales of Unregistered Securities None. Issuer Purchases of Equity Securities None.
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Table of Contents Stock Performance Graph This graph compares the cumulative total return on our common stock with that of the Standard & Poor’s BDC Index, Standard & Poor’s 500 Stock Index and the Russell 2000 Financial Services Index, for the period from December 31, 2020 through December 31, 2025. The graph assumes that a person invested $10,000 in each of the following: our common stock (SLRC), the S&P BDC Index, the S&P 500 Index, and the Russell 2000 Financial Services Index. The graph measures total stockholder return, which takes into account both changes in stock price and dividends. It assumes that dividends paid are invested in additional shares of the same class of equity securities at the frequency with which dividends are paid of such securities during the applicable fiscal year. The graph and other information furnished under this Part II, Item 5 of this Form 10-K shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the 1934 Act. The stock price performance included in the above graph is not necessarily indicative of future stock price performance.
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Table of Contents Fees and Expenses The following table is intended to assist an investor in understanding the costs and expenses that you will bear directly or indirectly. We caution you that some of the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this report contains a reference to fees or expenses paid by “us” or “SLRC,” or that “we” will pay fees or expenses, you will indirectly bear such fees or expenses as an investor in SLR Investment Corp. Stockholder transaction expenses: Sales load (as a percentage of offering price) —% Offering expenses (as a percentage of offering price) —% Dividend reinvestment plan expenses —% Total stockholder transaction expenses (as a percentage of offering price) —% Annual expenses (as a percentage of net assets attributable to common stock) : Base management fee 3.13% Incentive fees payable under the Advisory Agreement (up to 20%) 2.17% Interest payments on borrowed funds 6.82% Acquired fund fees and expenses 0.52% Other expenses (estimated) 1.09% Total annual expenses 13.73% In the event that the shares of common stock are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load and the “Example” will be updated accordingly. The prospectus supplement corresponding to each offering will disclose the applicable offering expenses and total stockholder transaction expenses. The expenses of the dividend reinvestment plan are included in “other expenses.” Annual Expenses are presented in this manner because common stockholders will bear all costs of running the Company. Our 1.50% base management fee under the Advisory Agreement (giving effect to the Letter Agreement) is based on our gross assets, which is defined as all the assets of SLRC, excluding temporary assets, including those acquired using borrowings for investment purposes, and assumes our gross assets remain consistent with gross assets for the fiscal year ended December 31, 2025. The base management fee is reduced to 1.00% on gross assets that exceed 200% of total net assets as of the immediately preceding quarter. Assumes that annual incentive fees earned by our investment adviser, SLR Capital Partners, remain consistent with the incentive fees earned by SLR Capital Partners for the fiscal year ended December 31, 2025. The incentive fee consists of two parts: The first part, which is payable quarterly in arrears, equals 20% of the excess, if any, of our “Pre-Incentive Fee Net Investment Income” that exceeds a 1.75% quarterly (7.00% annualized) hurdle rate, which we refer to as the Hurdle, subject to a “catch-up” provision measured at the end of each calendar quarter. The first part of the incentive fee is computed and paid on income that may include interest that is accrued but not yet received in cash. The operation of the first part of the incentive fee for each quarter is as follows: • no incentive fee is payable to our investment adviser in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed the Hurdle of 1.75%; • 100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the Hurdle but is less than 2.1875% in any calendar quarter (8.75% annualized) is payable to our investment adviser. We refer to this portion of our Pre-Incentive Fee Net Investment Income (which exceeds the Hurdle but is less than 2.1875%) as the “catch-up.” The “catch-up” is meant to provide our investment adviser with 20% of our Pre-Incentive Fee Net Investment Income, as if a Hurdle did not apply when our Pre-Incentive Fee Net Investment Income exceeds 2.1875% in any calendar quarter; and • 20% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to our investment adviser (once the Hurdle is reached and the catch-up is achieved, 20% of all Pre-Incentive Fee Investment Income thereafter is allocated to our investment adviser). The second part of the incentive fee equals 20% of our “Incentive Fee Capital Gains,” if any, which equals our realized capital gains on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive (1) (2) (3) (2) (4) (5) (6) (7) (8) (9) (1) (2) (3) (4) (5) (6)
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Table of Contents fees. The second part of the incentive fee is payable, in arrears, at the end of each calendar year (or upon termination of the Advisory Agreement, as of the termination date). We have historically and will in the future borrow funds from time to time to make investments to the extent we determine that the economic situation is conducive to doing so. The costs associated with our outstanding borrowings are indirectly borne by our investors. For purposes of this section, we have computed interest expense using the average consolidated balance outstanding for borrowings during the fiscal year ended December 31, 2025. We used SOFR or a similar base rate on December 31, 2025 and the interest rate on the Credit Facility, the SPV Credit Facility, the 2028 Series J Unsecured Notes, the 2028 Series I Unsecured Notes, the 2028 Series H Unsecured Notes, the 2027 Series G Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Unsecured Notes and the 2026 Unsecured Notes on December 31, 2025. We have also included, as applicable, the estimated market discount or amortization of fees incurred in establishing the Credit Facility, the SPV Credit Facility, the 2028 Series J Unsecured Notes, the 2028 Series I Unsecured Notes, the 2028 Series H Unsecured Notes, the 2027 Series G Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Unsecured Notes and the 2026 Unsecured Notes as of December 31, 2025. Additionally, we included the estimated cost of commitment fees for unused balances on the Credit Facility and the SPV Credit Facility. As of December 31, 2025, we had $505.4 million outstanding under the Credit Facility, $165.1 million outstanding under the SPV Credit Facility and $75 million, $50 million, $50 million, $49 million, $135 million, $50 million and $75 million outstanding under the 2028 Series J Unsecured Notes, the 2028 Series I Unsecured Notes, the 2028 Series H Unsecured Notes, the 2027 Series G Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Unsecured Notes and the 2026 Unsecured Notes, respectively. We may also issue preferred stock, subject to our compliance with applicable requirements under the 1940 Act, although we have no immediate intention to do so. The holders of shares of our common stock indirectly bear the expenses of our investment in SLR Senior Lending Program LLC (“SSLP”). No management fee is charged on our investments in SSLP in connection with the administrative services provided to SSLP. Future expenses for SSLP may be substantially higher or lower because certain expenses may fluctuate over time. “Other expenses” are based on estimated amounts for the current fiscal year, which considers the amounts incurred for the fiscal year ended December 31, 2025 and include our overhead expenses, including payments under our Administration Agreement based on our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement. Example The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed that our annual operating expenses would remain at the levels set forth in the table above and have excluded performance-based incentive fees. As such, the below example is based on an annual expense ratio of 11.56%. In the event that shares are sold to or through underwriters, a corresponding prospectus supplement will restate this example to reflect the applicable sales load. 1 Year 3 Years 5 Years 10 Years You would pay the following expenses on a $1,000 investment, assuming a 5% annual return $ 116 $ 324 $ 507 $ 868 The example and the expenses in the tables above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown. While the example assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less than 5%. The incentive fee under the Advisory Agreement, which, assuming a 5% annual return, would either not be payable or would have an insignificant impact on the expense amounts shown above, is not included in the example. This illustration assumes that we will not realize any capital gains (computed net of all realized capital losses and unrealized capital depreciation) in any of the indicated time periods. If we achieve sufficient returns on our investments, including through the realization of capital gains, to trigger an incentive fee of a material amount, our expenses and returns to our investors would be higher. For example, if we assumed that we received our 5% annual return completely in the form of net realized capital gains on our investments, computed net of all cumulative unrealized depreciation on our investments, the projected dollar amount of total cumulative expenses set forth in the above illustration would be as follows: 1 Year 3 Years 5 Years 10 Years You would pay the following expenses on a $1,000 investment, assuming a 5% annual return $ 126 $ 349 $ 540 $ 904 In addition, the example assumes no sales load. Also, while the example assumes reinvestment of all distributions at net asset value, participants in our dividend reinvestment plan will receive a number of shares of our common stock, determined by dividing the total dollar amount of the distribution payable to a participant by the market price per share of our common stock at the close of (7) (8) (9)
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Table of Contents 73 trading on the distribution payment date, which may be at, above or below net asset value unless the company makes open market purchases and the shares received will be determined based on the average price paid by our agent, plus commissions. Item 6. Reserved
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Table of Contents 74 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The information contained in this section should be read in conjunction with our Consolidated Financial Statements and notes thereto appearing elsewhere in this report. Some of the statements in this report constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained herein involve risks and uncertainties, including statements as to: • our future operating results, including our ability to achieve objectives; • our business prospects and the prospects of our portfolio companies; • the impact of investments that we expect to make; • our contractual arrangements and relationships with third parties; • the dependence of our future success on the general economy and its impact on the industries in which we invest; • the impact of any protracted decline in the liquidity of credit markets on our business; • the ability of our portfolio companies to achieve their objectives; • the valuation of our investments in portfolio companies, particularly those having no liquid trading market; • market conditions and our ability to access alternative debt markets and additional debt and equity capital; • our expected financings and investments; • the adequacy of our cash resources and working capital; • the timing of cash flows, if any, from the operations of our portfolio companies; • the ability of the Investment Adviser to locate suitable investments for us and to monitor and administer our investments; • the ability of the Investment Adviser to attract and retain highly talented professionals; • the ability of the Investment Adviser to adequately allocate investment opportunities among the Company and its other advisory clients; • any conflicts of interest posed by the structure of the management fee and incentive fee to be paid to the Investment Adviser; • changes in political, economic or industry conditions, relations between the United States, Russia, Ukraine and other nations, the interest rate environment or conditions affecting the financial and capital markets; • the escalating conflicts and various social and political circumstances in the U.S. and around the world; • the impact of geopolitical conditions on our portfolio companies and on the industries in which we invest; • changes in the general economy, slowing economy, inflation, risk of recession, risks in respect of a failure to increase the U.S. debt ceiling or government shutdown and uncertainty surrounding the financial and political stability of the United States and other countries; and • our ability to anticipate and identify evolving market expectations with respect to environmental, social and governance matters, including the environmental impacts of our portfolio companies’ supply chains and operations. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation: • an economic downturn could impair our portfolio companies’ ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies; • a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities; • interest rate volatility could adversely affect our results, particularly because we use leverage as part of our investment strategy;
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Table of Contents 75 • currency fluctuations could adversely affect the results of our investments in foreign companies, particularly to the extent that we receive payments denominated in foreign currency rather than U.S. dollars; and • the risks, uncertainties and other factors we identify in Item 1A. — Risk Factors contained in this Annual Report on Form 10-K for the year ended December 31, 2025 and in our other filings with the SEC. We generally use words such as “anticipates,” “believes,” “expects,” “intends” and similar expressions to identify forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements for any reason, including any factors set forth in “Risk Factors” and elsewhere in this report. We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including any annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Overview SLR Investment Corp. (the “Company”, “SLRC”, “we” or “our”), a Maryland corporation formed in November 2007, is a closed- end, externally managed, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Furthermore, as the Company is an investment company, it continues to apply the guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We invest primarily in privately held U.S. middle-market companies, where we believe the supply of primary capital is limited and the investment opportunities are most attractive. Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in leveraged middle-market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. From time to time, we may also invest in public companies that are thinly traded. Our business is focused primarily on the direct origination of investments through portfolio companies or their financial sponsors. Our investments generally range between $5 million and $100 million each, although we expect that this investment size will vary proportionately with the size of our capital base and/or with strategic initiatives. Our investment activities are managed by SLR Capital Partners, LLC (the “Investment Adviser”) and supervised by our board of directors (the “Board”), a majority of whom are non-interested, as such term is defined in the 1940 Act. SLR Capital Management, LLC (the “Administrator”) provides the administrative services necessary for us to operate. In addition, we may invest a portion of our portfolio in other types of investments, which we refer to as opportunistic investments, which are not our primary focus but are intended to enhance our overall returns. These investments may include, but are not limited to, direct investments in public companies that are not thinly traded and securities of leveraged companies located in select countries outside of the United States. Recent Developments On February 24, 2026, the Board declared a quarterly distribution of $0.41 per share payable on March 27, 2026 to holders of record as of March 13, 2026.
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Table of Contents 76 Investments Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make. As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” The definition of “eligible portfolio company” includes certain companies that do not have any securities listed on a national securities exchange and companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million. Revenue We generate revenue primarily in the form of interest and dividend income from the securities we hold and capital gains, if any, on investment securities that we may sell. Our debt investments generally have a stated term of three to seven years and typically bear interest at a floating rate usually determined on the basis of a benchmark Secured Overnight Financing Rate (“SOFR”), commercial paper rate, or the prime rate. Interest on our debt investments is generally payable monthly or quarterly but may be bi-monthly or semi-annually. In addition, our investments may provide payment-in-kind (“PIK”) income. Such amounts of accrued PIK income are added to the cost of the investment on the respective capitalization dates and generally become due at maturity of the investment or upon the investment being called by the issuer. We may also generate revenue in the form of commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable, consulting fees, etc. Expenses All investment professionals of the Investment Adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Investment Adviser. We bear all other costs and expenses of our operations and transactions, including (without limitation): • the cost of our organization and public offerings; • the cost of calculating our net asset value, including the cost of any third-party valuation services; • the cost of effecting sales and repurchases of our shares and other securities; • interest payable on debt, if any, to finance our investments; • fees payable to third parties relating to, or associated with, making investments, including fees and expenses associated with performing due diligence reviews of prospective investments and advisory fees; • transfer agent and custodial fees; • fees and expenses associated with marketing efforts; • federal and state registration fees and any stock exchange listing fees; • federal, state and local taxes; • independent directors’ fees and expenses; • brokerage commissions; • fidelity bond, directors and officers errors and omissions liability insurance and other insurance premiums; • direct costs and expenses of administration, including printing, mailing, long distance telephone and staff; • fees and expenses associated with independent audits and outside legal costs; • costs associated with our reporting and compliance obligations under the 1940 Act and applicable federal and state securities laws; and
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Table of Contents 77 • all other expenses incurred by either SLR Capital Management or us in connection with administering our business, including payments under the Administration Agreement that will be based upon our allocable portion of overhead and other expenses incurred by SLR Capital Management in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and our allocable portion of the costs of compensation and related expenses of our chief compliance officer and our chief financial officer and their respective staffs. We expect our general and administrative operating expenses related to our ongoing operations to increase moderately in dollar terms. During periods of asset growth, we generally expect our general and administrative operating expenses to decline as a percentage of our total assets and increase during periods of asset declines. Incentive fees, interest expense and costs relating to future offerings of securities, among others, may also increase or reduce overall operating expenses based on portfolio performance, interest rate benchmarks, and offerings of our securities relative to comparative periods, among other factors. Macroeconomic Environment Credit markets remained highly competitive in 2025 as borrowers sought to access lower base rates and narrowing credit spreads. Underpinning this backdrop was a resilient U.S. economy that continued to grow throughout the year as policy uncertainty moderated even with continued geopolitical tensions and a government shutdown. The year ended with real US GDP growth in 2025 and expectations for short-term interest rates to decline further in 2026 and for fiscal stimulus to collectively remain supportive of both liquidity and the broader economy. Portfolio and Investment Activity During the year ended December 31, 2025, we invested approximately $1.1 billion across approximately 58 portfolio companies. This compares to investing approximately $468 million across approximately 50 portfolio companies for the year ended December 31, 2024. Investments sold, prepaid or repaid during the year ended December 31, 2025 totaled approximately $1.0 billion versus approximately $634 million for the year ended December 31, 2024. At December 31, 2025, our portfolio consisted of 100 portfolio companies and was invested 21.5% in cash flow senior secured loans, 47.1% in asset-based senior secured loans / SLR Credit Solutions (“SLR Credit”) / SLR Healthcare ABL (“SLR Healthcare”) / SLR Business Credit, 20.4% in equipment senior secured financings / SLR Equipment Finance (“SLR Equipment”) / Kingsbridge Holdings, LLC (“KBH”) and 11.0% in life science senior secured loans, in each case, measured at fair value, versus 122 portfolio companies and was invested 30.7% in cash flow senior secured loans, 35.8% in asset-based senior secured loans / SLR Credit / SLR Healthcare / SLR Business Credit, 21.6% in equipment senior secured financings / SLR Equipment / KBH and 11.9% in life science senior secured loans, in each case, measured at fair value, at December 31, 2024. At December 31, 2025, 83.5%, or $1.74 billion, of our income producing investment portfolio* was floating rate and 16.5%, or $344 million, was fixed rate, measured at fair value. At December 31, 2024, 80.6%, or $1.59 billion, of our income producing investment portfolio* was floating rate and 19.4%, or $383 million, was fixed rate, measured at fair value. As of December 31, 2025 and 2024, we had zero and one issuer on non-accrual status, respectively. * We have included SLR Credit, SLR Equipment, SLR Healthcare, SLR Business Credit and KBH within our income producing investment portfolio. SLR Credit Solutions On December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (“Crystal Financial”) for $275 million in cash. Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit Solutions, f/k/a Crystal Financial LLC. The remaining financial interest was held by various employees of SLR Credit, through their investment in Crystal Management LP. SLR Credit had a diversified portfolio of 23 loans having a total par value of approximately $400 million at November 30, 2012 and a $275 million committed revolving credit facility. On July 28, 2016, the Company purchased Crystal Management LP’s approximately 2% equity interest in SLR Credit for approximately $5.7 million. Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit. On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved. As of December 31, 2025, total commitments to the revolving credit facility were $300 million. As of December 31, 2025, SLR Credit had 33 funded commitments to 26 different issuers with total funded loans of approximately $404.1 million on total assets of $420.7 million. As of December 31, 2024, SLR Credit had 27 funded commitments to
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Table of Contents 78 22 different issuers with total funded loans of approximately $317.6 million on total assets of $364.3 million. As of December 31, 2025 and December 31, 2024, the largest loan outstanding totaled $29.9 million and $27.9 million, respectively. For the same periods, the average exposure per issuer was $15.5 million and $14.4 million, respectively. SLR Credit’s credit facility, which is non-recourse to the Company, had approximately $215.8 million and $150.0 million of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025 and December 31, 2024, SLR Credit had net income of $13.8 million and $24.9 million, respectively, on gross income of $44.9 million and $55.2 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us. SLR Credit’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. SLR Equipment Finance On July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary Nations Equipment Finance, LLC. Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies are doing business as SLR Equipment Finance. SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S. based companies. We invested $209.9 million in cash to effect the transaction, of which $145.0 million was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly- owned consolidated subsidiary NEFPASS LLC, and $64.9 million was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC. On January 31, 2024, SLR Equipment entered into a $225 million senior secured credit facility originally with a maturity date of January 31, 2027. On March 1, 2024, the credit facility was expanded to $350 million of commitments. On November 26, 2025, SLR Equipment renewed the credit facility extending the maturity date to November 26, 2028. As of December 31, 2025, SLR Equipment had 485 funded equipment-backed leases and loans to 243 different customers with a total net investment in leases and loans of approximately $299.8 million on total assets of $338.3 million. As of December 31, 2024, SLR Equipment had 398 funded equipment-backed leases and loans to 217 different customers with a total net investment in leases and loans of approximately $324.9 million on total assets of $366.3 million. As of December 31, 2025 and December 31, 2024, the largest position outstanding totaled $17.8 million and $17.9 million, respectively. For the same periods, the average exposure per customer was $1.2 million and $1.5 million, respectively. SLR Equipment’s credit facility, which is non-recourse to the Company, had approximately $237.5 million and $261.0 million of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025 and December 31, 2024, SLR Equipment had net income (losses) of $2.6 million and ($9.5) million, respectively, on gross income of $28.6 million and $22.0 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Equipment’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Equipment will be able to maintain consistent dividend payments to us. SLR Equipment’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. Kingsbridge Holdings, LLC On November 3, 2020, the Company acquired 87.5% of the equity securities of Kingsbridge Holdings, LLC through KBH Topco LLC (“KBHT”), a Delaware corporation. KBH is a residual focused independent mid-ticket lessor of equipment primarily to U.S. large corporate companies. The Company invested $216.6 million to effect the transaction, of which $136.6 million was invested to acquire 87.5% of KBHT’s equity and $80.0 million in KBH’s debt. The existing management team of KBH committed to continuing to lead KBH after the transaction. Following the transaction, the Company owned 87.5% of KBHT equity and the KBH management team owned the remaining 12.5% of KBHT’s equity. On March 13, 2024, as per the terms of the original purchase agreement, the Company acquired 3.125% of KBHT’s equity from the KBH management team. On March 11, 2025, as per the terms of the original purchase agreement, the Company acquired an additional 3.125% of KBHT’s equity from the KBH management team. Effective with these purchases, the Company owns 93.75% of KBHT’s equity and the KBH management team owns the remaining 6.25%. As of December 31, 2025 and December 31, 2024, KBHT had total assets of $940.3 million and $920.1 million, respectively. For the same periods, debt recourse to KBHT totaled $309.4 million and $271.6 million, respectively, and non-recourse debt totaled $407.8 million and $421.6 million, respectively. None of the debt is recourse to the Company. For the years ended December 31, 2025 and December 31, 2024, KBHT had net income of $25.1 million and $12.0 million, respectively, on gross income of $361.0 million and $341.3 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in KBHT’s funded commitments, the timing of originations, and
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Table of Contents the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us. KBHT’s consolidated financial statements for the years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. SLR Healthcare ABL SUNS acquired an equity interest in SLR Healthcare ABL, f/k/a Gemino Healthcare Finance, LLC on September 30, 2013. SLR Healthcare is a commercial finance company that originates, underwrites, and manages primarily secured, asset-based loans for small and mid-sized companies operating in the healthcare industry. SUNS’s initial investment in SLR Healthcare was approximately $32.8 million. The management team of SLR Healthcare co-invested in the transaction and continues to lead SLR Healthcare. As of December 31, 2025, SLR Healthcare’s management team and the Company own approximately 8% and 92% of the equity in SLR Healthcare, respectively. SLRC acquired SLR Healthcare in connection with the Mergers on April 1, 2022. Effective with an amendment dated September 19, 2024, SLR Healthcare has a $160 million non-recourse credit facility, which is expandable to $200 million under its accordion facility. The maturity date of this facility is March 31, 2026. SLR Healthcare currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of December 31, 2025, the portfolio totaled approximately $297.8 million of commitments with a total net investment in loans of $157.0 million on total assets of $165.4 million. As of December 31, 2024, the portfolio totaled approximately $288.3 million of commitments with a total net investment in loans of $130.2 million on total assets of $138.5 million. At December 31, 2025, the portfolio consisted of 48 issuers with an average balance of approximately $3.3 million versus 47 issuers with an average balance of approximately $2.8 million at December 31, 2024. All of the commitments in SLR Healthcare’s portfolio are floating-rate, senior-secured, cash-pay loans. SLR Healthcare’s credit facility, which is non-recourse to us, had approximately $127.2 million and $99.6 million of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025 and December 31, 2024, SLR Healthcare had net income of $6.9 million and $5.6 million, respectively, on gross income of $23.5 million and $20.0 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. SLR Healthcare’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. SLR Business Credit SUNS acquired 100% of the equity interests of North Mill Capital LLC (“NMC”) on October 20, 2017. NMC is a leading asset- backed lending commercial finance company that provides senior secured asset-backed financings to U.S. based small-to-medium-sized businesses primarily in the manufacturing, services and distribution industries. SUNS invested approximately $51.0 million to effect the transaction. Subsequently, SUNS contributed 1% of its equity interest in NMC to ESP SSC Corporation. Immediately thereafter, SUNS and ESP SSC Corporation contributed their equity interests to NorthMill LLC (“North Mill”). On May 1, 2018, North Mill merged with and into NMC, with NMC being the surviving company. SUNS and ESP SSC Corporation then owned 99% and 1% of the equity interests of NMC, respectively. The management team of NMC continues to lead NMC. On June 28, 2019, North Mill Holdco LLC (“NM Holdco”), a newly formed entity, and ESP SSC Corporation acquired 100% of Summit Financial Resources, a Salt Lake City-based provider of asset-backed financing to small and medium-sized businesses. As part of this transaction, SUNS’s 99% interest in the equity of NMC was contributed to NM Holdco. This approximately $15.5 million transaction was financed with borrowings on NMC’s credit facility. Effective February 25, 2021, NMC and its related companies are doing business as SLR Business Credit. On June 3, 2021, NMC acquired 100% of Fast Pay Partners LLC, a Los Angeles-based provider of asset-backed financing to digital media companies. The transaction purchase price of approximately $66.7 million was financed with equity from SUNS of $19.0 million and borrowings on NMC’s credit facility of $47.7 million. SLRC acquired SLR Business Credit in connection with the Mergers on April 1, 2022. On September 27, 2024, NMC acquired an asset-based factoring portfolio and operations from Webster Bank, N.A.’s Commercial Services Division. The transaction purchase price of approximately $127 million was funded with $30 million of equity from the Company and the remaining $97 million from borrowings on NMC’s credit facility. SLR Business Credit currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of December 31, 2025, the portfolio totaled approximately $920.4 million of commitments, of which $535.2 million were funded, on total assets of $574.1 million. As of December 31, 2024, the portfolio totaled approximately $858.0 million of commitments, of which $488.4 million were funded, on total assets of $527.1 million. At December 31, 2025, the portfolio consisted of 179 issuers with an average balance of approximately $3.0 million versus 188 issuers with an average balance of approximately $2.6 million at December 31, 2024. NMC has a senior credit facility with a bank lending group for $367.0 million which expires on November 13, 2028. Borrowings are secured by substantially all of NMC’s assets. NMC’s credit facility, which is non-recourse to us, had approximately $273.2 million and $231.0 million of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025 and December 31, 2024, SLR Business Credit had net income of $9.6 million and $10.5 million, respectively, on gross income of $54.8 million and $45.9 million, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations
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Table of Contents 80 in SLR Business Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Business Credit will be able to maintain consistent dividend payments to us. SLR Business Credit’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. Stock Repurchase Program On May 7, 2025, our Board authorized an extension of a program for the purpose of repurchasing up to $50 million of our outstanding shares of common stock. Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market from time to time provided that we comply with our code of ethics and the guidelines specified in Rule 10b-18 of the 1934 Act, including certain price, market volume and timing constraints. In addition, any repurchases will be conducted in accordance with the 1940 Act. Unless further amended or extended by our Board, we expect the repurchase program to be in place until the earlier of May 7, 2026 or until $50 million of our outstanding shares of common stock have been repurchased. The timing and number of additional shares to be repurchased will depend on a number of factors, including market conditions. There are no assurances that we will engage in any repurchases beyond what is reported herein. There were no share repurchases during the fiscal years ended December 31, 2025 and December 31, 2024. SLR Senior Lending Program LLC On October 12, 2022, the Company entered into an amended and restated limited liability company agreement with Sunstone Senior Credit L.P. (the “Investor”) to create a joint venture vehicle, SLR Senior Lending Program LLC (“SSLP”). SSLP is expected to invest primarily in senior secured cash flow loans. The Company and the Investor each have made initial equity commitments of $50 million, resulting in a total equity commitment of $100 million. Investment decisions and all material decisions in respect of SSLP must be approved by representatives of the Company and the Investor. On December 1, 2022, SSLP commenced operations. On December 12, 2022, SSLP, as servicer, and SLR Senior Lending Program SPV LLC (“SSLP SPV”), a newly formed wholly owned subsidiary of SSLP, as borrower, entered into a senior secured revolving credit facility with Goldman Sachs Bank USA acting as administrative agent. On October 8, 2025, this facility was refinanced with Citizens Bank, N.A. into a $150 million facility scheduled to mature in October 2030 and generally bearing interest at a rate of SOFR plus 2.15% (the “SSLP Facility”). SSLP and SSLP SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit facilities of this nature. As of December 31, 2025 and December 31, 2024, borrowings outstanding on the SSLP Facility totaled $94.5 million and $96.6 million, respectively. As of December 31, 2025 and December 31, 2024, the Company and the Investor had contributed combined equity capital in the amount of $95.75 million and $95.75 million, respectively. As of December 31, 2025 and December 31, 2024, the Company and the Investor’s combined remaining commitments to SSLP totaled $4.25 million and $4.25 million, respectively. The Company, along with the Investor, controls the funding of SSLP, and SSLP may not call the unfunded commitments of the Company or the Investor without approval of both the Company and the Investor. As of December 31, 2025 and December 31, 2024, SSLP had total assets of $192.8 million and $197.5 million, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 25 and 32 different borrowers, respectively. For the years ended December 31, 2025 and December 31, 2024, SSLP invested $70.4 million in 12 portfolio companies and $47.6 million in 16 portfolio companies, respectively. For the same periods, investments prepaid totaled $68.2 million and $57.5 million, respectively.
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Table of Contents 81 SSLP Portfolio as of December 31, 2025 (dollar amounts in thousands) Description Industry SpreadAboveIndex Floor InterestRate MaturityDate ParAmount Cost FairValue Alkeme Intermediary Holdings, LLC (4) Insurance S+500 1.00% 8.67% 5/2027 $ 8,164 $ 8,071 $ 8,164 All States Ag Parts, LLC (4) Trading Companies & Distributors S+650 1.00% 10.43% 9/2026 2,076 2,076 2,076 BayMark Health Services, Inc. (4) Health Care Providers & Services S+500 1.00% 8.93% 6/2027 3,991 3,991 3,792 CC SAG Holdings Corp. (4) Diversified Consumer Services S+525 0.75% 8.97% 6/2028 9,922 9,922 9,922 Crewline Buyer, Inc. IT Services S+675 1.00% 10.59% 11/2030 5,084 4,981 5,084 CVAUSA Management, LLC (4) Health Care Providers & Services S+525 1.00% 8.97% 5/2029 9,924 9,727 9,924 Exactcare Parent, Inc. Health Care Providers & Services S+550 1.00% 9.39% 11/2029 3,171 3,106 3,171 Eyesouth Eye Care Holdco LLC (4) Health Care Providers & Services S+550 1.00% 9.47% 10/2029 9,923 9,883 9,923 Fertility (ITC) Investment Holdco, LLC (4) Health Care Providers & Services S+500 0.75% 9.12% 1/2029 5,835 5,727 5,835 Foundation Consumer Brands, LLC Personal Care Products S+500 1.00% 9.09% 2/2029 7,777 7,777 7,777 iCIMS, Inc.(4) Software S+575 0.75% 9.61% 8/2028 10,000 9,970 10,000 Maxor Acquisition, Inc.(4) Health Care Providers & Services S+600 1.00% 9.82% 3/2029 7,951 7,822 7,951 Medrina, LLC Health Care Providers & Services S+600 1.00% 9.69% 10/2029 2,758 2,706 2,758 NS and Associates LLC Consumer Staples Distribution & Retail S+525 1.00% 9.01% 8/2030 8,076 7,958 8,076 ONS MSO, LLC Health Care Providers & Services S+625 1.00% 10.09% 7/2028 5,789 5,689 5,789 Pinnacle Fertility, Inc.(4) Health Care Providers & Services S+500 0.75% 9.27% 3/2028 13,432 13,432 13,432 Plastic Management, LLC(4) Health Care Providers & Services S+500 1.00% 8.67% 8/2027 5,522 5,439 5,522 RQM+ Corp.(4) Life Sciences Tools & Services S+675 1.00% 10.68% 8/2029 6,152 6,152 5,537 RxSense Holdings LLC Diversified Consumer Services S+500 1.00% 8.84% 3/2026 8,782 8,782 8,782 SunMed Group Holdings, LLC(4) Health Care Equipment & Supplies S+550 0.75% 9.44% 6/2028 8,765 8,765 8,765 The Townsend Company, LLC(4) Commercial Services & Supplies S+500 1.00% 8.72% 8/2030 12,020 11,723 12,020 Tilley Distribution, Inc.(4) Trading Companies & Distributors S+600 1.00% 9.82% 12/2026 5,548 5,548 5,437 United Digestive MSO Parent, LLC(4) Health Care Providers & Services S+575 1.00% 9.42% 3/2029 5,007 4,907 5,007 UVP Management, LLC Health Care Providers & Services S+550 1.00% 9.32% 9/2027 3,288 3,245 3,288 Western Veterinary Partners LLC(4) Diversified Consumer Services S+525 1.00% 8.92% 10/2027 13,337 13,282 13,337 $ 180,681 $ 181,369 (1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor. (2) Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, we have provided the current interest rate in effect as of December 31, 2025. (3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. (4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities. (1) (2) (3)
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Table of Contents 82 SSLP Portfolio as of December 31, 2024 (dollar amounts in thousands) Description Industry Spread Above Index Floor Interest Rate Maturity Date Par Amount Cost Fair Value Accession Risk Management Group, Inc. Insurance S+475 0.75% 9.08% 11/2029 $ 6,888 $ 6,865 $ 6,888 Aegis Toxicology Sciences Corporation (4) Health Care Providers & Services S+550 1.00% 10.28% 5/2025 2,895 2,895 2,895 Alkeme Intermediary Holdings, LLC (4) Insurance S+575 1.00% 10.08% 10/2026 5,984 5,861 5,984 All States Ag Parts, LLC (4) Trading Companies & Distributors S+600 1.00% 10.59% 9/2026 2,111 2,111 2,111 BayMark Health Services, Inc. (4) Health Care Providers & Services S+500 1.00% 9.59% 6/2027 3,992 3,992 3,992 CC SAG Holdings Corp. (4) Diversified Consumer Services S+525 0.75% 9.58% 6/2028 8,877 8,877 8,877 Crewline Buyer, Inc. IT Services S+675 1.00% 11.11% 11/2030 5,084 4,966 5,084 CVAUSA Management, LLC (4) Health Care Providers & Services S+650 1.00% 10.84% 5/2029 5,357 5,220 5,357 Erie Construction Mid-west, LLC Building Products S+475 1.00% 10.09% 7/2027 8,000 8,000 8,000 Exactcare Parent, Inc. Health Care Providers & Services S+550 1.00% 10.03% 11/2029 3,203 3,125 3,203 Eyesouth Eye Care Holdco LLC (4) Health Care Providers & Services S+550 1.00% 10.15% 10/2029 2,646 2,596 2,646 Fertility (ITC) Investment Holdco, LLC (4) Health Care Providers & Services S+650 1.00% 11.74% 1/2029 5,895 5,757 5,895 Foundation Consumer Brands, LLC (4) Personal Products S+625 1.00% 10.89% 2/2027 8,102 8,102 8,102 High Street Buyer, Inc. Insurance S+525 0.75% 9.58% 4/2028 7,527 7,527 7,527 iCIMS, Inc.(4) Software S+575 0.75% 10.38% 8/2028 3,195 3,158 3,195 Kaseya, Inc.(4) Software S+550 0.75% 10.75% 6/2029 9,127 9,127 9,127 Kid Distro Holdings, LLC Software S+475 1.00% 9.49% 10/2029 8,848 8,848 8,848 Legacy Service Partners, LLC Diversified Consumer Services S+525 1.00% 9.73% 1/2029 2,796 2,733 2,796 Maxor Acquisition, Inc.(4) Health Care Providers & Services S+600 1.00% 10.46% 3/2029 6,058 5,906 6,058 Medrina, LLC Health Care Providers & Services S+600 1.00% 10.44% 10/2029 2,386 2,333 2,386 ONS MSO, LLC(4) Health Care Providers & Services S+625 1.00% 10.84% 7/2026 5,833 5,738 5,833 Plastic Management, LLC(4) Health Care Providers & Services S+500 1.00% 9.43% 8/2027 5,579 5,453 5,579 Retina Midco, Inc.(4) Health Care Providers & Services S+575 1.00% 10.35% 1/2026 9,918 9,793 10,116 RQM+ Corp.(4) Life Sciences Tools & Services S+675 1.00% 11.34% 8/2029 5,895 5,895 5,659 RxSense Holdings LLC(4) Diversified Consumer Services S+500 1.00% 9.69% 3/2026 8,875 8,875 8,875 SunMed Group Holdings, LLC(4) Health Care Equipment & Supplies S+550 0.75% 10.19% 6/2028 8,856 8,856 8,856 The Townsend Company, LLC(4) Commercial Services & Supplies S+500 1.00% 9.36% 8/2030 4,117 4,026 4,078 Tilley Distribution, Inc.(4) Trading Companies & Distributors S+600 1.00% 10.48% 12/2026 5,607 5,607 5,495 United Digestive MSO Parent, LLC(4) Health Care Providers & Services S+575 1.00% 10.08% 3/2029 3,433 3,346 3,433 Urology Management Holdings, Inc.(4) Health Care Providers & Services S+550 1.00% 9.83% 6/2027 4,112 4,035 4,112 UVP Management, LLC(4) Health Care Providers & Services S+625 1.00% 10.73% 9/2025 4,858 4,803 4,858 WCI-BXC Purchaser, LLC Distributors S+625 1.00% 10.78% 11/2030 2,875 2,810 2,875 $ 177,236 $ 178,740 (1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor. (2) Floating rate debt investments typically bear interest at a rate determined by reference to SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, we have provided the current interest rate in effect as of December 31, 2024. (3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. (4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities. Below is certain summarized financial information for SSLP as of December 31, 2025 and December 31, 2024 and for the years ended December 31, 2025 and December 31, 2024: December 31, 2025 December 31, 2024 Selected Balance Sheet Information for SSLP (in thousands): Investments at fair value (cost $180,681 and $177,236, respectively) $ 181,369 $ 178,740 Cash and other assets 11,441 18,721 Total assets $ 192,810 $ 197,461 Debt outstanding ($94,500 and $96,600 face amounts, respectively, reported net of unamortized debt issuance costs of $1,843 and $1,572, respectively) $ 92,657 $ 95,028 Distributions payable 1,885 3,381 Interest payable and other credit facility related expenses 1,488 472 Accrued expenses and other payables 268 398 Total liabilities $ 96,298 $ 99,279 Members’ equity $ 96,512 $ 98,182 Total liabilities and members’ equity $ 192,810 $ 197,461 (1) (2) (3)
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Table of Contents Year EndedDecember 31,2025 Year EndedDecember 31,2024 Selected Income Statement Information for SSLP (in thousands): Investment income $ 18,821 $ 24,330 Service fees* $ 444 $ 512 Interest and other credit facility expenses 9,679 10,916 Other general and administrative expenses 239 157 Total expenses $ 10,362 $ 11,585 Net investment income $ 8,459 $ 12,745 Realized gain on investments 543 320 Net change in unrealized gain (loss) on investments (816) 308 Net realized and unrealized gain (loss) on investments (273) 628 Net income $ 8,186 $ 13,373 * Service fees are included within the Company’s Consolidated Statements of Operations as other income. Critical Accounting Policies The preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies. Within the context of these critical accounting policies and disclosed subsequent events herein, we are not currently aware of any other reasonably likely events or circumstances that would result in materially different amounts being reported. Valuation of Portfolio Investments Rule 2a-5 under the 1940 Act addresses the fair valuation of fund investments. The rule sets forth requirements for good faith determinations of fair value, as well as for the performance of fair value determinations, including related oversight and reporting obligations. The rule also defines “readily available market quotations” for purposes of the definition of “value” under the 1940 Act, and the SEC noted that this definition will apply in all contexts under the 1940 Act. The Company complies with Rule 2a-5’s valuation requirements. We conduct the valuation of our assets, pursuant to which our net asset value is determined, at all times consistent with GAAP and the 1940 Act. The Board will (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule 2a-5 under the 1940 Act; and (6) maintain recordkeeping requirements under Rule 2a-5. It is anticipated that in respect of many of the Company’s assets, readily available market quotations will not be obtainable and that such assets will be valued at fair value. A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation. Our valuation procedures are set forth in more detail in Note 2(b) to the Company’s Consolidated Financial Statements. Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial statements. Revenue Recognition The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more (90 days or more for equipment
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Table of Contents 84 financing) and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management’s judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on investments may be recognized as income or applied to principal depending upon management’s judgment. Some of our investments may have contractual PIK income. PIK income computed at the contractual rate, as applicable, is accrued and reflected as a receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received). PIK generally becomes due at the maturity of the investment or upon the investment being called by the issuer. At the point the Company believes PIK is not expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends is reversed from the related receivable through interest or dividend income, respectively. The Company does not reverse previously capitalized PIK income. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non- accrual status are restored to accrual status if the Company again believes that PIK is expected to be realized. Loan origination fees, original issue discount, and market discounts are capitalized and amortized into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record prepayment premiums on loans and other investments as interest income when we receive such amounts. Capital structuring fees are recorded as other income when earned. The typically higher yields and interest rates on PIK securities, to the extent we invested, reflects the payment deferral and increased credit risk associated with such instruments and that such investments may represent a significantly higher credit risk than coupon loans. PIK securities may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. PIK income has the effect of generating investment income and increasing the incentive fees payable at a compounding rate. In addition, the deferral of PIK income also increases the loan-to-value ratio at a compounding rate. PIK securities create the risk that incentive fees will be paid to the Investment Adviser based on non-cash accruals that ultimately may not be realized, but the Investment Adviser will be under no obligation to reimburse the Company for these fees. For the fiscal years ended December 31, 2025 and 2024, capitalized PIK income totaled $8.2 million and $7.1 million, respectively. Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss We generally measure realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized origination or commitment fees and prepayment penalties. The net change in unrealized gain or loss reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized gain or loss, when gains or losses are realized. Gains or losses on investments are calculated by using the specific identification method. Income Taxes SLRC, a U.S. corporation, has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code. In order to qualify for U.S. federal income taxation as a RIC, the Company is required, among other things, to timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each year. Depending on the level of taxable income earned in a given tax year, we may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a nondeductible 4% U.S. federal excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Company accrues an estimated excise tax, if any, on estimated excess taxable income. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standard updates (“ASU”) recently issued by the FASB. ASUs not listed were assessed by the Company and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company adopted
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Table of Contents 85 ASU 2023-09 effective on December 31, 2025 and concluded that the application of this guidance did not have any material impact on its consolidated financial statements. RESULTS OF OPERATIONS Results comparisons are for the fiscal years ended December 31, 2025 and December 31, 2024. Results for the fiscal year ended December 31, 2023 can be found in Item 7 of the Company’s report on Form 10-K filed on February 27, 2024, which is incorporated by reference herein. Investment Income For the fiscal years ended December 31, 2025 and 2024, gross investment income totaled $218.5 million and $232.4 million, respectively. The decrease in gross investment income for the year over year period was primarily due to a decrease in the average size of the income-producing investment portfolio as well as a decrease in index rates. Expenses Net expenses totaled $131.6 million and $136.1 million, respectively, for the fiscal years ended December 31, 2025 and 2024, of which $52.9 million and $55.4 million, respectively, were base management fees and performance-based incentive fees and $67.9 million and $71.5 million, respectively, were interest and other credit facility expenses. Other general and administrative expenses totaled $10.8 million and $9.4 million, respectively, for the fiscal years ended December 31, 2025 and 2024. Over the same periods, $0.05 million and $0.2 million of performance-based incentive fees were waived. Expenses generally consist of management and performance-based incentive fees, interest and other credit facility expenses, administrative services fees, insurance expenses, legal fees, directors’ fees, transfer agency fees, printing and proxy expenses, audit and tax services expenses, and other general and administrative expenses. Interest and other credit facility expenses generally consist of interest, unused fees, agency fees and loan origination fees, if any, among others. The decrease in expenses for the year over year period was primarily due to lower interest expense from a decrease in average borrowings as well as a decrease in the index rates on borrowings. Additionally there was a reduction in performance-based incentive fees on lower net investment income. Net Investment Income The Company’s net investment income totaled $86.9 million and $96.3 million, or $1.59 and $1.77 per average share, respectively, for the fiscal years ended December 31, 2025 and 2024. Net Realized Gain (Loss) The Company had investment sales and prepayments totaling approximately $1.0 billion and $634 million, respectively, for the fiscal years ended December 31, 2025 and 2024. Net realized gains (losses) over the same periods were $1.6 million and ($2.3) million, respectively. Net realized gains for fiscal year 2025 were primarily related to the sale of selected assets. Net realized losses for fiscal year 2024 were primarily related to the exit of our investments in NSPC Holdings LLC and NSPC Intermediate Corp. Net Change in Unrealized Gain For the fiscal years ended December 31, 2025 and 2024, net change in unrealized gain on the Company’s assets and liabilities totaled $4.0 million and $1.7 million, respectively. Net unrealized gain for the fiscal year ended December 31, 2025 was primarily due to appreciation in the value of our investments in KBH Topco, LLC, SLR Business Credit, RD Holdco, Inc., Bayside Parent, LLC and Arcutis Biotherapeutics, Inc., among others, partially offset by depreciation in the value of our investments in SLR Equipment Finance, SLR Credit Solutions, SLR-AMI Topco Blocker, LLC, OmniGuide Holdings, Inc., RQM+ Corp., SOINT, LLC and SLR Senior Lending Program LLC, among others, as well as the reversal of previously recognized unrealized appreciation upon the exit of our investments in Cerapedics, Inc., Outset Medical, Inc. and Retina Midco, Inc. Net unrealized gain for the fiscal year ended December 31, 2024 was primarily due to appreciation in the value of our investments in KBH Topco, LLC, SLR Credit Solutions, Bayside Parent, LLC and SLR Healthcare ABL, among others, partially offset the reversal of previously recognized unrealized appreciation on our investment in Alimera Sciences, Inc. as well as by depreciation in the value of our investments in SLR Equipment Finance, SLR-AMI Topco Blocker, LLC and SOINT, LLC, among others.
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Table of Contents Net Increase in Net Assets From Operations For the fiscal years ended December 31, 2025 and 2024, the Company had a net increase in net assets resulting from operations of $92.5 million and $95.8 million, respectively. For the fiscal years ended December 31, 2025 and 2024, earnings per average share were $1.70 and $1.76, respectively. LIQUIDITY AND CAPITAL RESOURCES The Company’s liquidity and capital resources are generated and generally available through its Credit Facility and SPV Credit Facility (as defined below), the 2026 Unsecured Notes, the 2027 Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Series G Unsecured Notes, the 2028 Series H Unsecured Notes, the 2028 Series I Unsecured Notes and the 2028 Series J Unsecured Notes (collectively the “Debt Instruments”), through cash flows from operations, investment sales, prepayments of senior and subordinated loans, income earned on investments and cash equivalents, and periodic follow-on equity and/or debt offerings. As of December 31, 2025, we had a total of $452.7 million of unused borrowing capacity under the Credit Facility and SPV Credit Facility, subject to borrowing base limits. We may from time to time issue equity and/or debt securities in either public or private offerings. The issuance of such securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful. The primary uses of existing funds and any funds raised in the future is expected to be for investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders, or for other general corporate purposes. On February 28, 2025, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) by and among the Company, the Investment Adviser and the Administrator, on the one hand, and Raymond James & Associates, Inc., Citizens JMP Securities, LLC and Jefferies LLC, as placement agents thereunder (collectively, the “Agents”), on the other hand. Under the Equity Distribution Agreement, the Company may, but has no obligation to, issue and sell up to $150.0 million in aggregate amount of shares of its common stock from time to time through the Agents, or to them, as principal for their own account. For the fiscal year ended December 31, 2025, the Company sold no shares of common stock under the Equity Distribution Agreement. As of December 31, 2025, shares representing $150.0 million of our common stock remain available for issuance and sale under the Equity Distribution Agreement. Debt On August 21, 2025, the Company closed a private offering of $75 million of unsecured notes due 2028 (the “2028 Series J Unsecured Notes”) with a fixed interest rate of 5.95% and a maturity date of August 21, 2028. Interest on the 2028 Series J Unsecured Notes is due semi-annually on February 21 and August 21. The 2028 Series J Unsecured Notes were issued in a private placement only to qualified institutional buyers. On July 30, 2025, the Company closed a private offering of $50 million of unsecured notes due 2028 (the “2028 Series I Unsecured Notes”) with a fixed interest rate of 5.96% and a maturity date of July 30, 2028. Interest on the 2028 Series I Unsecured Notes is due semi-annually on January 30 and July 30. The 2028 Series I Unsecured Notes were issued in a private placement only to qualified institutional buyers. On February 18, 2025, the Company closed a private offering of $50 million of unsecured notes due 2028 (the “2028 Series H Unsecured Notes”) with a fixed interest rate of 6.14% and a maturity date of February 18, 2028. Interest on the 2028 Series H Unsecured Notes is due semi-annually on February 18 and August 18. The 2028 Series H Unsecured Notes were issued in a private placement only to qualified institutional buyers. On December 16, 2024, the Company closed a private offering of $49 million of the 2027 Series G Unsecured Notes with a fixed interest rate of 6.24% and a maturity date of December 16, 2027. Interest on the 2027 Series G Unsecured Notes is due semi-annually on June 16 and December 16. The 2027 Series G Unsecured Notes were issued in a private placement only to qualified institutional buyers. On August 16, 2024, the Company closed on Amendment No. 3 to its August 28, 2019 senior secured credit agreement with Citibank, N.A as administrative agent, (the “Credit Facility”). Following this amendment and several commitment increases between the fourth quarter of 2024 and the third quarter of 2025 and a commitment decrease in the fourth quarter of 2025 related to a lender who did not extend their commitment with Amendment No. 3, the Credit Facility is now composed of $695.0 million of revolving credit and $153.1 million of term loans. Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of 1.75%-2.00% or the alternate base rate plus 0.75%-1.00%. The Credit Facility has a 0% floor, matures in August 2029 and includes
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Table of Contents ratable amortization in the final year. Subsequent to Amendment No. 4 on December 3, 2024, the Credit Facility may be increased up to $900 million with additional new lenders or an increase in commitments from current lenders. The Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Credit Facility contains certain financial covenants that, among other things, require the Company to maintain a minimum stockholder’s equity and a minimum asset coverage ratio. At December 31, 2025, outstanding USD equivalent borrowings under the Credit Facility totaled $505.4 million, composed of $352.2 million of revolving credit and $153.1 million of term loans. On April 1, 2022, we entered into an assumption agreement (the “CF Assumption Agreement”), effective as of the closing of the Mergers. The CF Assumption Agreement relates to our assumption of the revolving credit facility, originally entered into on August 26, 2011 (as amended from time to time, the “SPV Credit Facility”), by and among SUNS SPV LLC (the “SUNS SPV”), a wholly-owned subsidiary of SUNS, acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto. Currently, subsequent to an August 30, 2024 amendment, the commitment under the SPV Credit Facility is $275 million. The stated interest rate on the SPV Credit Facility is SOFR plus 2.25%-2.75% with no SOFR floor requirement, and the current final maturity date is August 30, 2028. The SPV Credit Facility is secured by all of the assets held by SUNS SPV. Under the terms of the SPV Credit Facility and related transaction documents, we, as successor to SUNS, and SUNS SPV, as applicable, have made certain customary representations and warranties and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SPV Credit Facility also includes usual and customary events of default for credit facilities of this nature. At December 31, 2025, outstanding USD equivalent borrowings under the SPV Credit Facility totaled $165.1 million. On April 1, 2022, we entered into an assumption agreement (the “Note Assumption Agreement”), effective as of the closing of the Mergers. The Note Assumption Agreement relates to our assumption of $85 million in aggregate principal amount of five-year, 3.90% senior unsecured notes, due March 31, 2025 (the “2025 Unsecured Notes”) and other obligations of SUNS under the Note Purchase Agreement, dated as of March 31, 2020 (the “Note Purchase Agreement”), by and among SUNS and certain institutional investors. Interest on the 2025 Unsecured Notes was due semi-annually on March 31 and September 30. Pursuant to the Note Assumption Agreement, we expressly assumed on behalf of SUNS the due and punctual payment of the principal of (and premium, if any) and interest on all the 2025 Unsecured Notes outstanding, and the due and punctual performance and observance of every covenant and every condition of the Note Purchase Agreement, to be performed or observed by SUNS. The 2025 Unsecured Notes were repaid in full at maturity on March 31, 2025. On January 6, 2022, the Company closed a private offering of $135 million of the 2027 Series F Unsecured Notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027. Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6. The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional buyers. On September 14, 2021, the Company closed a private offering of $50 million of the 2027 Unsecured Notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027. Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14. The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers. On December 18, 2019, the Company closed a private offering of $75 million of the 2026 Unsecured Notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026. Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15. The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers. Certain covenants on our issued debt may restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code. At December 31, 2025, the Company was in compliance with all financial and operational covenants required by the Debt Instruments. Cash Equivalents We deem certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities as cash equivalents. The Company makes purchases that are consistent with its purpose of making investments in securities described in paragraphs 1 through 3 of Section 55(a) of the 1940 Act. From time to time, including at or near the end of each fiscal quarter, we consider using various temporary investment strategies for our business. One strategy includes taking proactive steps by utilizing cash equivalents as temporary assets with the objective of enhancing our investment flexibility pursuant to Section 55 of the 1940 Act. More specifically, from time to time, we may purchase U.S. Treasury bills or other high-quality, short-term debt securities at or near the end of the quarter and typically close out the position on a net cash basis subsequent to quarter end. We may also utilize repurchase agreements or other balance sheet transactions, including drawing down on the Credit Facility, as deemed appropriate. The amount of these transactions or such drawn cash for this purpose is excluded from total assets for purposes of computing the asset base upon which the management fee is determined. We held a face amount of $350 million in cash equivalents as of December 31, 2025.
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Table of Contents 88 Contractual Obligations A summary of our significant contractual payment obligations as of December 31, 2025 is as follows: Payments Due by Period (in millions) Total Less than1 Year 1-3 Years 3-5 Years More Than5 Years Revolving credit facilities $ 517.3 $ — $ 165.1 $ 352.2 $ — Unsecured senior notes 484.0 75.0 409.0 — — Term loans 153.1 13.1 — 140.0 — (1) As of December 31, 2025, we had a total of $452.7 million of unused borrowing capacity under our revolving credit facilities, subject to borrowing base limits. Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy the asset coverage test. If that happens, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our common stockholders. Furthermore, as a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss. We have also entered into two contracts under which we have future commitments: the Advisory Agreement, pursuant to which the Investment Adviser has agreed to serve as our investment adviser, and the Administration Agreement, pursuant to which the Administrator has agreed to furnish us with the facilities and administrative services necessary to conduct our day-to-day operations and provide on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance. Payments under the Advisory Agreement are equal to (1) a percentage of the value of our average gross assets and (2) a two-part incentive fee. Payments under the Administration Agreement are equal to an amount based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of our chief financial officer and chief compliance officer and their respective staffs. Either party may terminate each of the Advisory Agreement and Administration Agreement without penalty upon 60 days written notice to the other. See note 3 to our Consolidated Financial Statements. On July 31, 2017, the Company, NEFPASS LLC and NEFCORP LLC entered into a servicing agreement. NEFCORP LLC was engaged to provide NEFPASS LLC with administrative services related to the loans and capital leases held by NEFPASS LLC. NEFPASS LLC may terminate this agreement upon 30 days written notice to NEFCORP LLC. On October 7, 2022, the Company committed $50 million to SSLP and entered into a servicing agreement. SSLP engaged and retained the Company to provide certain administrative services relating to the facilities, supplies and necessary ongoing overhead support services for the operation of SSLP’s ongoing business affairs in exchange for a fee. Senior Securities Information about our senior securities is shown in the following table (in thousands, except per unit amounts) as of each year ended December 31 for the past ten years, unless otherwise noted. The “—” indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities. (1)
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Table of Contents 89 Class and Year Total Amount Outstanding Asset Coverage Per Unit Involuntary Liquidating Preference Per Unit Average Market Value Per Unit Credit Facility Fiscal 2025 $ 352,248 $ 568 — N/A Fiscal 2024 342,043 642 — N/A Fiscal 2023 407,000 631 — N/A Fiscal 2022 293,000 513 — N/A Fiscal 2021 222,500 552 — N/A Fiscal 2020 126,000 421 — N/A Fiscal 2019 42,900 182 — N/A Fiscal 2018 96,400 593 — N/A Fiscal 2017 245,600 1,225 — N/A Fiscal 2016 115,200 990 — N/A Fiscal 2015 207,900 1,459 — N/A SPV Credit Facility Fiscal 2025 165,050 266 — N/A Fiscal 2024 165,050 310 — N/A Fiscal 2023 206,250 320 — N/A Fiscal 2022 155,200 272 — N/A 2022 Unsecured Notes Fiscal 2022 — — — N/A Fiscal 2021 150,000 372 — N/A Fiscal 2020 150,000 501 — N/A Fiscal 2019 150,000 638 — N/A Fiscal 2018 150,000 923 — N/A Fiscal 2017 150,000 748 — N/A Fiscal 2016 50,000 430 — N/A 2022 Tranche C Notes Fiscal 2022 — — — N/A Fiscal 2021 21,000 52 — N/A Fiscal 2020 21,000 70 — N/A Fiscal 2019 21,000 89 — N/A Fiscal 2018 21,000 129 — N/A Fiscal 2017 21,000 105 — N/A 2023 Unsecured Notes Fiscal 2023 — — — N/A Fiscal 2022 75,000 131 — N/A Fiscal 2021 75,000 186 — N/A Fiscal 2020 75,000 250 — N/A Fiscal 2019 75,000 319 — N/A Fiscal 2018 75,000 461 — N/A Fiscal 2017 75,000 374 — N/A 2024 Unsecured Notes Fiscal 2024 — — — N/A Fiscal 2023 125,000 194 — N/A Fiscal 2022 125,000 219 — N/A Fiscal 2021 125,000 309 — N/A Fiscal 2020 125,000 417 — N/A Fiscal 2019 125,000 531 — N/A 2025 Unsecured Notes Fiscal 2025 — — — N/A Fiscal 2024 85,000 159 — N/A Fiscal 2023 85,000 132 — N/A Fiscal 2022 85,000 149 — N/A 2026 Unsecured Notes Fiscal 2025 75,000 121 — N/A Fiscal 2024 75,000 141 — N/A Fiscal 2023 75,000 116 — N/A Fiscal 2022 75,000 131 — N/A Fiscal 2021 75,000 186 — N/A Fiscal 2020 75,000 250 — N/A Fiscal 2019 75,000 319 — N/A 2027 Unsecured Notes Fiscal 2025 50,000 81 — N/A Fiscal 2024 50,000 94 — N/A Fiscal 2023 50,000 77 — N/A Fiscal 2022 50,000 88 — N/A Fiscal 2021 50,000 124 — N/A 2027 Series F Unsecured Notes Fiscal 2025 135,000 218 — N/A Fiscal 2024 135,000 253 — N/A Fiscal 2023 135,000 209 — N/A Fiscal 2022 135,000 237 — N/A 2027 Series G Unsecured Notes Fiscal 2025 49,000 79 — N/A Fiscal 2024 49,000 92 — N/A 2028 Series H Unsecured Notes Fiscal 2025 50,000 81 — N/A (1) (2) (3) (4)
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Table of Contents 90 2028 Series I Unsecured Notes Fiscal 2025 50,000 81 — N/A 2028 Series J Unsecured Notes Fiscal 2025 75,000 121 — N/A 2042 Unsecured Notes Fiscal 2017 — — — N/A Fiscal 2016 100,000 859 — $ 1,002 Fiscal 2015 100,000 702 — 982 Senior Secured Notes Fiscal 2017 — — — N/A Fiscal 2016 75,000 645 — N/A Fiscal 2015 75,000 527 — N/A Term Loans Fiscal 2025 153,138 247 — N/A Fiscal 2024 140,000 263 — N/A Fiscal 2023 100,000 155 — N/A Fiscal 2022 100,000 175 — N/A Fiscal 2021 100,000 248 — N/A Fiscal 2020 75,000 250 — N/A Fiscal 2019 75,000 319 — N/A Fiscal 2018 50,000 308 — N/A Fiscal 2017 50,000 250 — N/A Fiscal 2016 50,000 430 — N/A Fiscal 2015 50,000 351 — N/A NEFPASS Facility Fiscal 2021 — — — N/A Fiscal 2020 30,000 100 — N/A Fiscal 2019 30,000 128 — N/A Fiscal 2018 30,000 185 — N/A SSLP Facility Fiscal 2019 — — — N/A Fiscal 2018 53,785 331 — N/A Total Senior Securities Fiscal 2025 $ 1,154,436 $ 1,863 — N/A Fiscal 2024 1,051,298 1,836 — N/A Fiscal 2023 1,183,250 1,834 — N/A Fiscal 2022 1,093,200 1,915 — N/A Fiscal 2021 818,500 2,029 — N/A Fiscal 2020 677,000 2,259 — N/A Fiscal 2019 593,900 2,525 — N/A Fiscal 2018 476,185 2,930 — N/A Fiscal 2017 541,600 2,702 — N/A Fiscal 2016 390,200 3,354 — N/A Fiscal 2015 432,900 3,039 — N/A (1) Total amount of each class of senior securities outstanding (in thousands) at the end of the period presented. (2) The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by all senior securities representing indebtedness. This asset coverage ratio is multiplied by one thousand to determine the Asset Coverage Per Unit. In order to determine the specific Asset Coverage Per Unit for each class of debt, the total Asset Coverage Per Unit is allocated based on the amount outstanding in each class of debt at the end of the period. As of December 31, 2025, asset coverage was 186.3%. (3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. (4) Not applicable except for the 2042 Unsecured Notes which were publicly traded. The Average Market Value Per Unit is calculated by taking the daily average closing price during the period and dividing it by $25 per share and multiplying the result by one thousand to determine a unit price per thousand consistent with Asset Coverage Per Unit. The average market value for the fiscal 2016 and 2015 periods was $100,175 and $98,196, respectively.
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Table of Contents 91 The following is a schedule of financial highlights for the respective years: Year endedDecember 31, 2020 Year endedDecember 31, 2019 Year endedDecember 31, 2018 Year endedDecember 31, 2017 Year endedDecember 31, 2016 Per Share Data: (a) Net asset value, beginning of year $ 21.44 $ 21.75 $ 21.81 $ 21.74 $ 20.79 Net investment income 1.40 1.71 1.77 1.62 1.68 Net realized and unrealized gain (loss) (1.04) (0.38) (0.19) 0.05 0.84 Net increase in net assets resulting from operations 0.36 1.33 1.58 1.67 2.52 Distributions to stockholders (see note 8(a)): From net investment income (1.15) (1.55) (1.64) (1.60) (1.60) From return of capital (0.49) (0.09) — — — Anti-dilution — — — — 0.03 Net asset value, end of year $ 20.16 $ 21.44 $ 21.75 $ 21.81 $ 21.74 Per share market value, end of year $ 17.51 $ 20.62 $ 19.19 $ 20.21 $ 20.82 Total Return(b) (5.72)% 16.22% 2.77% 4.47% 37.49% Net assets, end of year (in thousands) $ 852,023 $ 905,880 $ 919,171 $ 921,605 $ 918,507 Shares outstanding, end of year 42,260,826 42,260,826 42,260,826 42,260,826 42,248,525 Ratios to average net assets: Net investment income 6.93% 7.83% 8.10% 7.43% 7.91% Operating expenses 4.14% 5.76% 5.83% 5.80% 6.25% Interest and other credit facility expenses* 3.18% 3.13% 2.67% 2.35% 2.73% Total expenses 7.32% 8.89% 8.50% 8.15% 8.98% Average debt outstanding (in thousands) $ 556,104 $ 561,249 $ 508,445 $ 414,264 $ 495,795 Portfolio turnover ratio 26.0% 24.1% 39.3% 24.9% 31.0% (a) Calculated using the average shares outstanding method. (b) Total return is based on the change in market price per share during the year and takes into account distributions, if any, reinvested in accordance with the dividend reinvestment plan. Total return does not include a sales load. * Ratios shown without the non-recurring costs associated with the amendments and establishment of the Credit Facility and 2022 Unsecured Notes would be 3.18%, 3.13%, 2.67%, 2.29% and 2.39%, respectively for the years shown.
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Table of Contents 92 Off-Balance Sheet Arrangements From time to time and in the normal course of business, the Company may make unfunded capital commitments to current or prospective portfolio companies. Typically, the Company may agree to provide delayed-draw term loans or, to a lesser extent, revolving loan or equity commitments. These unfunded capital commitments always take into account the Company’s liquidity and cash available for investment, portfolio and issuer diversification, and other considerations. Accordingly, the Company had the following unfunded capital commitments at December 31, 2025 and December 31, 2024, respectively: December 31, 2025 December 31, 2024 (in millions) SLR Credit Solutions* $ 44.3 $ 44.3 Ardelyx, Inc. 29.3 6.6 Wilbur-Ellis Holdings II, LLC 26.4 — Treace Medical Concepts, Inc. 24.3 — Western Veterinary Partners LLC 21.1 18.2 SLR Business Credit* 20.0 8.0 SLR Healthcare ABL* 18.7 10.0 Infillion Inc. 16.8 — Lyneer Staffing Solutions, LLC 16.0 — Arcutis Biotherapeutics, Inc. 12.7 12.7 OIS Management Services, LLC 11.4 — BDG Media, Inc. 10.9 11.8 Copper River Seafoods, Inc. 10.8 6.9 Southern Lifting and Hoisting, LLC 10.1 — DeepIntent, Inc. 9.8 7.3 SLR Equipment Finance* 9.5 3.0 Stella & Chewy's, LLC 9.2 — SPAR Marketing Force, Inc. 7.7 5.4 SunMed Receivables I, LLC 7.6 — Velocity One, LLC 7.3 — Quantcast Corporation 6.3 4.1 WMD Funding LLC 6.2 7.2 Southern Transport LLC 6.1 — The Townsend Company, LLC 5.8 7.9 Sightly Enterprises, Inc. 5.7 2.7 Pinnacle Fertility, Inc. 5.3 — Sherwood Management Co., Inc. 5.1 — Streamland Media Holdings LLC 3.7 — One Touch Direct, LLC 3.5 8.0 Plastic Management, LLC 3.1 10.8 iCIMS, Inc. 2.9 3.5 WALCO Funding, LLC 2.9 — 33Across Inc. 2.4 4.2 SLR Senior Lending Program LLC* 2.1 2.1 Bayside Opco, LLC 2.1 2.1 United Digestive MSO Parent, LLC 1.9 7.5 SunMed Group Holdings, LLC 1.6 1.6 EyeSouth Eye Care Holdco LLC 1.3 1.3 Tilley Distribution, Inc. 1.0 1.2 CC SAG Holdings Corp. (Spectrum Automotive) 0.5 0.5 TAUC Management, LLC 0.3 0.3 Shoes for Crews Global, LLC 0.3 0.3 All States Ag Parts, LLC 0.1 0.3 CVAUSA Management, LLC — 10.2 Pasadena Private Lending Inc. — 8.4 SPR Therapeutics, Inc. — 6.1 Foundation Consumer Brands, LLC — 3.0 Erie Construction Mid-west, LLC — 2.4 Kaseya, Inc. — 1.9 RxSense Holdings LLC — 1.3 Urology Management Holdings, Inc. — 0.9 High Street Buyer, Inc. — 0.6 Total Commitments $ 394.1 $ 234.6 * The Company controls the funding of these commitments and may cancel them at its discretion
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Table of Contents 93 The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the respective portfolio company’s achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the company. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. As of December 31, 2025 and December 31, 2024, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment. In the normal course of business, we invest or trade in various financial instruments and may enter into various investment activities with off-balance sheet risk, which may include forward foreign currency contracts. Generally, these financial instruments represent future commitments to purchase or sell other financial instruments at specific terms at future dates. These financial instruments contain varying degrees of off-balance sheet risk whereby changes in the market value or our satisfaction of the obligations may exceed the amount recognized in our Consolidated Statements of Assets and Liabilities. Distributions The following table reflects the cash distributions per share on our common stock for the two most recent fiscal years and the current fiscal year to date: Date Declared Record Date Payment Date Amount Fiscal 2026 February 24, 2026 March 13, 2026 March 27, 2026 $ 0.41 Total 2026 $ 0.41 Fiscal 2025 November 4, 2025 December 12, 2025 December 26, 2025 $ 0.41 August 5, 2025 September 12, 2025 September 26, 2025 0.41 May 7, 2025 June 13, 2025 June 27, 2025 0.41 February 25, 2025 March 14, 2025 March 28, 2025 0.41 Total 2025 $ 1.64 Fiscal 2024 November 6, 2024 December 13, 2024 December 27, 2024 $ 0.41 August 7, 2024 September 13, 2024 September 27, 2024 0.41 May 8, 2024 June 13, 2024 June 27, 2024 0.41 February 27, 2024 March 14, 2024 March 28, 2024 0.41 Total 2024 $ 1.64 Tax characteristics of all distributions will be reported to stockholders on Form 1099 after the end of the applicable calendar year. Future quarterly distributions, if any, will be determined by the Board. We expect that our distributions to stockholders will generally be from accumulated net investment income, from net realized capital gains or non-taxable return of capital, if any, as applicable.
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Table of Contents We have elected to be taxed as a RIC under Subchapter M of the Code. To maintain our RIC tax treatment, we must distribute at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In addition, although we currently intend to distribute realized net capital gains (i.e., net long- term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment. We maintain an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock, unless they specifically “opt out” of the dividend reinvestment plan so as to receive cash distributions. We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, due to the asset coverage test applicable to us as a business development company, we may in the future be limited in our ability to make distributions. Also, our credit facilities may limit our ability to declare distributions if we default under certain provisions. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of the tax benefits available to us as a RIC. In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet received in cash, such as contractual payment-in-kind income, which represents contractual income added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC. With respect to the distributions to stockholders, income from origination, structuring, closing and certain other upfront fees associated with investments in portfolio companies are treated as taxable income and accordingly, distributed to stockholders. Related Parties We have entered into a number of business relationships with affiliated or related parties, including the following: • We have entered into the Advisory Agreement with the Investment Adviser. Mr. Gross, our Chairman, Co-Chief Executive Officer and President, and Mr. Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, are managing members and senior investment professionals of, and have financial and controlling interests in, the Investment Adviser. In addition, Mr. Kajee, our Chief Financial Officer and Treasurer, serves as the Chief Financial Officer for the Investment Adviser, and Mr. Talarico, our Chief Compliance Officer and Secretary, serves as Partner, General Counsel and Chief Compliance Officer for the Investment Adviser. • The Administrator provides us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our Administration Agreement. We reimburse the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing compliance functions, and the compensation of our chief compliance officer, our chief financial officer and their respective staffs. • We have entered into a license agreement with the Investment Adviser, pursuant to which the Investment Adviser has granted us a non-exclusive, royalty-free license to use the licensed marks “SOLAR” and “SLR”. The Investment Adviser may also manage other funds in the future that may have investment mandates that are similar, in whole and in part, with ours. For example, the Investment Adviser presently serves as investment adviser to SCP Private Credit Income BDC LLC, an unlisted BDC that focuses on investing primarily in senior secured loans, including non-traditional asset-based loans and first lien loans, SLR HC BDC LLC, an unlisted BDC whose principal focus is to invest directly and indirectly in senior secured loans and other debt instruments typically to middle market companies within the healthcare industry, and SLR Private Credit BDC II LLC, an unlisted BDC focused on first lien senior secured floating rate loans. In addition, Mr. Gross, our Chairman, Co-Chief Executive Officer and President, Mr. Spohler, our Co-Chief Executive Officer and Chief Operating Officer, Mr. Kajee, our Chief Financial Officer and Treasurer, and Mr. Talarico, our Chief Compliance Officer and Secretary, serve in similar capacities for SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC. The Investment Adviser and certain investment advisory affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that we should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the Investment Adviser’s allocation procedures. On June 13, 2017, the Investment Adviser received an exemptive order that permits the Company to participate in negotiated co-investment transactions with certain affiliates, in a manner consistent with the Company’s investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to various conditions (the
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Table of Contents 95 “Exemptive Order”). If the Company is unable to rely on the Exemptive Order for a particular opportunity, such opportunity will be allocated first to the entity whose investment strategy is the most consistent with the opportunity being allocated, and second, if the terms of the opportunity are consistent with more than one entity’s investment strategy, on an alternating basis. Although the Investment Adviser’s investment professionals will endeavor to allocate investment opportunities in a fair and equitable manner, the Company and its stockholders could be adversely affected to the extent investment opportunities are allocated among us and other investment vehicles managed or sponsored by, or affiliated with, our executive officers, directors and members of the Investment Adviser. Related party transactions may occur among us, SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare and SLR Equipment. These transactions may occur in the normal course of business. No administrative or other fees are paid to the Investment Adviser by SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare or SLR Equipment. In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law. Item 7A. Quantitative and Qualitative Disclosure About Market Risk We are subject to financial market risks, including changes in interest rates. Uncertainty with respect to interest rates, inflationary pressures, risks in respect of a failure to increase the U.S. debt ceiling, a downgrade in the U.S. credit rating, the war between Ukraine and Russia, the ongoing conflicts in the Middle East and other geopolitical risks and the U.S. government’s recent enactments and proposals to enact substantial tariffs introduced significant volatility in the financial markets, and the effects of this volatility have materially impacted and could continue to materially impact our market risks. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In a low interest rate environment, including a reduction of SOFR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. Conversely, in a rising interest rate environment, such difference could potentially increase thereby increasing our net investment income. During the fiscal year ended December 31, 2025, certain investments in our comprehensive investment portfolio had floating interest rates. These floating rate investments were primarily based on floating SOFR and typically have durations of one to three months after which they reset to current market interest rates. Additionally, some of these investments have floors. The Company also has credit facilities that are generally based on floating SOFR. Assuming no changes to our balance sheet as of December 31, 2025 and no new defaults by portfolio companies, a hypothetical one percent decrease in SOFR on our comprehensive floating rate assets and liabilities would decrease our net investment income by approximately eight cents per average share over the next twelve months. Assuming no changes to our balance sheet as of December 31, 2025 and no new defaults by portfolio companies, a hypothetical one percent increase in SOFR on our comprehensive floating rate assets and liabilities would increase our net investment income by approximately six cents per average share over the next twelve months. However, we may hedge against interest rate fluctuations from time to time by using standard hedging instruments such as futures, options, swaps and forward contracts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in any benefits of certain changes in interest rates with respect to our portfolio of investments. At December 31, 2025, we had no interest rate hedging instruments outstanding on our balance sheet. Increase (Decrease) in SOFR (1.00)% 1.00% Increase (Decrease) in Net Investment Income Per Share Per Year $ (0.08) $ 0.06 We may also have exposure to foreign currencies through various investments. These investments are converted into U.S. dollars at the balance sheet date, exposing us to movements in foreign exchange rates. In order to reduce our exposure to fluctuations in foreign exchange rates, we may borrow from time to time in such currencies under our multi-currency revolving credit facility or enter into forward currency or similar contracts.
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Table of Contents 96 Item 8. Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Management’s Report on Internal Control Over Financial Reporting 97 Report of Independent Registered Public Accounting Firm 98 Consolidated Statements of Assets and Liabilities as of December 31, 2025 and 2024 100 Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 101 Consolidated Statements of Changes in Net Assets for the years ended December 31, 2025, 2024 and 2023 102 Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023 103 Consolidated Schedules of Investments as of December 31, 2025 and 2024 112 Notes to Consolidated Financial Statements 119
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Table of Contents 97 MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2025. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the consolidated financial statements. Management performed an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025 based upon criteria in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on its assessment, management determined that the Company’s internal control over financial reporting was effective as of December 31, 2025 based upon criteria in Internal Control – Integrated Framework (2013) issued by COSO. The effectiveness of the Company’s internal control over financial reporting as of December 31, 2025 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report which appears herein.
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Table of Contents 98 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors SLR Investment Corp.: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated statements of assets and liabilities of SLR Investment Corp. and subsidiaries (the Company), including the consolidated schedules of investments, as of December 31, 2025 and 2024, the related consolidated statements of operations, changes in net assets, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in the Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying management’s report on internal control over financial reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Such procedures also included confirmation of securities owned as of December 31, 2025 and 2024, by correspondence with the custodian, portfolio companies, agents or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
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Table of Contents 99 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Fair value of investments As described in Notes 2 and 6 to the consolidated financial statements, the Company measures its investments at fair value. In determining the fair value of investments classified as Level 3, the Company makes subjective judgments and estimates using unobservable inputs. We identified the assessment of the fair value of the majority of such investments as a critical audit matter. A high degree of auditor judgment was required to assess the Company’s fair value assumptions and changes in these assumptions could have a significant impact on the fair value of investments. Specifically, subjective auditor judgment was required to assess assumptions related to the (1) credit risk associated with the borrower and its ability to make interest and principal payments for debt investments and (2) selection of comparable companies and the financial performance multiples of such comparable companies for equity investments. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s process to measure the fair value of investments, including controls related to the development of the above assumptions. We also evaluated the Company’s ability to estimate fair value by comparing dispositions to the Company’s most recent fair value estimate prior to the disposition. For a selection of investments, we evaluated changes in the borrower’s credit risk and market yields from the purchase date to the fair value measurement date by analyzing the changes in the borrower’s assessed leverage ratios and other financial metrics. We also involved valuation professionals with specialized skills and knowledge who, for a selection of investments, independently developed estimates of fair value using market yields of comparable companies of similar credit risk for debt investments, and financial performance multiples of comparable companies for equity investments and compared the results to the Company’s fair value estimates. /s/ KPMG LLP We have served as the Company’s auditor since 2007. New York, New York February 24, 2026
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Table of Contents 100 SLR INVESTMENT CORP. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share amounts) December 31, 2025 December 31, 2024 Assets Investments at fair value: Companies less than 5% owned (cost: $1,092,009 and $1,019,357, respectively) $ 1,092,822 $ 1,027,457 Companies 5% to 25% owned (cost: $109,346 and $103,655, respectively) 98,067 89,945 Companies more than 25% owned (cost: $953,384 and $916,554, respectively) 933,923 888,232 Cash 15,716 16,761 Cash equivalents (cost: $348,585 and $397,510, respectively) 348,585 397,510 Dividends receivable 15,178 15,375 Interest receivable 11,865 11,993 Receivable for investments sold 55,271 1,573 Prepaid expenses and other assets 1,137 571 Total assets $ 2,572,564 $ 2,449,417 Liabilities Debt ($1,154,436 and $1,041,093 face amounts, respectively, reported net of unamortized debt issuance costs of $8,082 and $9,399, respectively. See note 7) $ 1,146,354 $ 1,031,694 Payable for investments and cash equivalents purchased 402,727 397,510 Management fee payable (see note 3) 7,956 7,739 Performance-based incentive fee payable (see note 3) 5,384 5,920 Interest payable (see note 7) 9,269 7,836 Administrative services payable (see note 3) 3,127 3,332 Other liabilities and accrued expenses 1,754 2,460 Total liabilities $ 1,576,571 $ 1,456,491 Commitments and contingencies (see note 15) Net Assets Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized, respectively, and 54,554,634 and 54,554,634 shares issued and outstanding, respectively $ 546 $ 546 Paid-in capital in excess of par (see note 2(f)) 1,115,023 1,117,606 Accumulated distributable net loss (see note 2(f)) (119,576) (125,226) Total net assets $ 995,993 $ 992,926 Net Asset Value Per Share $ 18.26 $ 18.20 See notes to consolidated financial statements.
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Table of Contents 101 SLR INVESTMENT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Year Ended December 31, 2025 2024 2023 INVESTMENT INCOME: Interest: Companies less than 5% owned $ 122,518 $ 154,077 $ 163,589 Companies 5% to 25% owned 5,002 3,881 2,058 Companies more than 25% owned 13,016 13,055 11,627 Dividends: Companies 5% to less than 25% owned 3,187 845 — Companies more than 25% owned 67,316 52,944 45,986 Other income: Companies less than 5% owned 7,047 7,117 5,802 Companies 5% to 25% owned 14 — 26 Companies more than 25% owned 444 512 224 Total investment income 218,544 232,431 229,312 EXPENSES: Management fees (see note 3) 31,207 31,389 31,661 Performance-based incentive fees (see note 3) 21,723 24,039 22,898 Interest and other credit facility expenses (see note 7) 67,900 71,464 72,507 Administrative services expense (see note 3) 5,815 5,520 5,899 Other general and administrative expenses 5,007 3,862 4,756 Total expenses 131,652 136,274 137,721 Performance-based incentive fees waived (see note 3) (48) (153) (500) Net expenses 131,604 136,121 137,221 Net investment income $ 86,940 $ 96,310 $ 92,091 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS: Net realized gain (loss) on investments and cash equivalents: Companies less than 5% owned $ 1,592 $ (2,252) $ (27,602) Companies more than 25% owned — — (381) Net realized gain (loss) on investments and cash equivalents 1,592 (2,252) (27,983) Net change in unrealized gain (loss) on investments: Companies less than 5% owned (7,285) (3,137) 20,425 Companies 5% to 25% owned 2,429 2,105 (1,384) Companies more than 25% owned 8,861 2,731 (6,761) Net change in unrealized gain (loss) on investments 4,005 1,699 12,280 Net realized and unrealized gain (loss) on investments and cash equivalents 5,597 (553) (15,703) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 92,537 $ 95,757 $ 76,388 EARNINGS PER SHARE (see note 5) $ 1.70 $ 1.76 $ 1.40 See notes to consolidated financial statements.
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Table of Contents 102 SLR INVESTMENT CORP. CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (in thousands, except share amounts) Year Ended December 31, 2025 2024 2023 Increase (decrease) in net assets resulting from operations: Net investment income $ 86,940 $ 96,310 $ 92,091 Net realized gain (loss) 1,592 (2,252) (27,983) Net change in unrealized gain (loss) 4,005 1,699 12,280 Net increase in net assets resulting from operations 92,537 95,757 76,388 Distributions to stockholders (see note 8(a)): From distributable earnings (87,935) (89,470) (89,470) From return of capital (1,535) — — Net distributions to stockholders (89,470) (89,470) (89,470) Capital transactions (see note 16): Repurchases of common stock — — (10) Net decrease in net assets resulting from capital transactions — — (10) Total increase (decrease) in net assets 3,067 6,287 (13,092) Net assets at beginning of year 992,926 986,639 999,731 Net assets at end of year $ 995,993 $ 992,926 $ 986,639 Capital share activity (see note 16): Repurchases of common stock — — (746) Net decrease from capital share activity — — (746) See notes to consolidated financial statements.
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Table of Contents 103 SLR INVESTMENT CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2025 2024 2023 Cash Flows from Operating Activities: Net increase in net assets resulting from operations $ 92,537 $ 95,757 $ 76,388 Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: Net realized (gain) loss on investments and cash equivalents (1,592) 2,252 27,983 Net change in unrealized (gain) loss on investments (4,005) (1,699) (12,280) Deferred financing costs/market discount amortization 3,138 3,645 2,114 Net accretion of discount on investments (7,161) (8,922) (11,932) (Increase) decrease in operating assets: Purchase of investments (1,131,073) (441,087) (774,888) Proceeds from disposition of investments 1,031,750 603,193 713,643 Capitalization of payment-in-kind income (8,218) (7,146) (11,113) Collections of payment-in-kind income 1,121 2,541 497 Receivable for investments sold (53,698) (35) (414) Interest receivable 128 (959) (1,328) Dividends receivable 197 (3,607) (576) Prepaid expenses and other assets (566) 37 56 Increase (decrease) in operating liabilities: Payable for investments and cash equivalents purchased 5,217 65,220 (85,321) Management fee payable 217 (288) 63 Performance-based incentive fee payable (536) 56 442 Administrative services expense payable (205) 1,363 481 Interest payable 1,433 301 (408) Other liabilities and accrued expenses (706) (1,307) (290) Net Cash Provided by (Used in) Operating Activities (72,022) 309,315 (76,883) Cash Flows from Financing Activities: Cash distributions paid (89,470) (89,470) (96,951) Proceeds from unsecured borrowings 174,112 48,970 — Repayment of unsecured borrowings (85,000) (125,000) (75,000) Proceeds from secured borrowings 788,567 452,459 1,059,665 Repayments of secured borrowings (766,157) (526,157) (895,000) Repurchase of common stock — — (10) Net Cash Provided by (Used in) Financing Activities 22,052 (239,198) (7,296) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (49,970) 70,117 (84,179) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 414,271 344,154 428,333 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 364,301 $ 414,271 $ 344,154 Supplemental disclosure of cash flow information: Cash paid for interest $ 63,329 $ 67,518 $ 72,915 Non-cash exchange of investments — 27,254 — See notes to consolidated financial statements.
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Table of Contents 104 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS December 31, 2025 (in thousands, except share/unit amounts) Description Industry Spread Above Index Floor Interest Rate Acquisition Date Maturity Date Par Amount Cost Fair Value Senior Secured Loans — 126.5% First Lien Bank Debt/Senior Secured Loans 33Across Inc. Media P+200 8.50% 10.50% 1/2024 10/2027 $ 2,249 $ 2,249 $ 2,249 Alkeme Intermediary Holdings, LLC(16) Insurance S+500 1.00% 8.67% 9/2023 5/2027 17,384 17,141 17,384 All States Ag Parts, LLC(16) Trading Companies & Distributors S+650 1.00% 10.43% 4/2022 9/2026 2,213 2,206 2,213 BayMark Health Services, Inc.(16) Health Care Providers & Services S+500 1.00% 8.93% 4/2022 6/2027 8,179 8,068 7,770 Bayside Opco, LLC(24) Health Care Providers & Services S+725 1.00% 11.07% 5/2023 5/2026 19,725 19,725 19,725 Bayside Parent, LLC(24) Health Care Providers & Services S+1000 1.00% 13.82% 5/2023 5/2026 6,933 6,933 6,933 BDG Media, Inc. Media P+525 5.50% 12.00% 7/2022 7/2026 7,054 7,054 7,054 Blazing Star Parent, LLC(16) Consumer Staples Distribution & Retail S+700 1.00% 10.82% 8/2025 8/2030 16,293 16,065 16,293 CC SAG Holdings Corp.(Spectrum Automotive)(16) Diversified Consumer Services S+525 0.75% 8.97% 6/2021 6/2028 28,756 28,475 28,756 Clifford Loan Ventures, LLC & Clifford Preferred Ventures Holdings LLC(3) Capital Markets S+700 1.00% 10.88% 9/2025 9/2028 30,833 30,356 30,833 Copper River Seafoods, Inc. Food Products P+200 — 8.75% 12/2023 4/2028 1,197 1,197 1,197 CVAUSA Management, LLC(16) Health Care Providers & Services S+525 1.00% 8.97% 5/2023 5/2029 18,630 18,424 18,630 DeepIntent, Inc. Media P+135 3.90% 8.10% 12/2023 9/2030 2,965 2,965 2,965 Enhanced Permanent Capital, LLC(3) Capital Markets S+625 1.00% 10.72% 12/2020 6/2029 55,106 54,143 54,142 EyeSouth Eye Care Holdco LLC(16) Health Care Providers & Services S+550 1.00% 9.32% 10/2022 10/2029 2,223 2,172 2,223 FE Advance, LLC & Sonic ACA Advance LLC(16) Financial Services S+650 1.00% 10.38% 7/2024 7/2027 20,894 20,649 20,894 Fertility (ITC) Investment Holdco, LLC Health Care Providers & Services S+500 0.75% 9.12% 1/2023 1/2029 26,280 25,890 26,280 Human Interest Inc.(16) Professional Services S+625 1.00% 10.12% 6/2022 7/2027 20,104 20,265 20,305 iCIMS, Inc.(16) Software S+575 0.75% 9.59% 8/2022 8/2028 26,040 25,831 26,040 Infillion Inc. Professional Services P+175 — 8.50% 5/2025 4/2028 23,226 23,226 23,226 Insight Investments Holdings, LLC Financial Services S+625 1.00% 9.99% 6/2025 10/2030 45,000 44,572 45,000 Kingsbridge Holdings, LLC(2) Multi-Sector Holdings S+700 1.00% 10.84% 12/2018 12/2027 142,500 142,349 142,500 Logix Holding Company, LLC(16) Communications Equipment S+750 2.00% 11.41% 9/2018 12/2028 10,459 10,459 10,459 Luxury Asset Capital, LLC(16) Consumer Finance S+675 1.00% 10.74% 7/2022 7/2027 30,500 30,277 30,500 Lyneer Staffing Solutions, LLC Professional Services P+100 — 7.75% 4/2025 4/2028 44,000 44,000 44,000 Maxor Acquisition, Inc.(16) Health Care Providers & Services S+600 1.00% 9.82% 3/2023 3/2029 19,025 18,690 19,025 OIS Management Services, LLC Health Care Providers & Services S+475 0.75% 8.42% 10/2025 11/2028 9,462 9,368 9,462 One Touch Direct, LLC Commercial Services & Supplies P+75 4.00% 7.50% 12/2023 3/2027 5,456 5,456 5,456 Pinnacle Fertility, Inc. Health Care Providers & Services S+500 0.75% 9.27% 3/2025 3/2028 979 949 979 Plastic Management, LLC(16) Health Care Providers & Services S+500 1.00% 8.67% 4/2022 8/2027 24,434 23,984 24,434 Quantcast Corporation Commercial Services & Supplies S+525 2.00% 9.04% 6/2024 6/2029 8,298 8,215 8,298 RQM+ Corp.(16) Life Sciences Tools & Services S+675 1.00% 10.68% 8/2021 8/2029 24,421 24,157 21,979 Sherwood Management Co., Inc. Specialty Retail S+500 2.00% 9.05% 3/2025 3/2030 5,663 5,593 5,663 Shoes for Crews Global, LLC Diversified Consumer Services S+650 1.00% 10.33% 6/2024 6/2029 3,426 3,426 3,426 Sightly Enterprises, Inc. Media P+475 6.00% 11.50% 1/2024 12/2026 1,849 1,849 1,849 SLR Healthcare ABL (2)(3)(21) Financial Services S+650 — 10.46% 6/2025 4/2026 1,800 1,800 1,800 Southern Lifting and Hoisting, LLC Transportation Infrastructure P+25 6.00% 7.00% 1/2025 1/2027 19,885 19,885 19,885 Southern Orthodontic Partners Management, LLC(16) Health Care Providers & Services S+525 1.00% 8.92% 6/2022 7/2026 32,822 32,659 32,822 Southern Transport LLC Transportation Infrastructure P+25 6.00% 7.00% 1/2025 1/2027 11,188 11,188 11,188 SPAR Marketing Force, Inc. Media P+125 — 8.00% 12/2023 10/2027 10,335 10,335 10,335 Stella & Chewy's, LLC(16) Consumer Staples Distribution & Retail S+525 2.00% 9.04% 3/2025 3/2028 13,494 13,327 13,494 See notes to consolidated financial statements. (7) (1) (12) (11) (11) (14) (23) (26)
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Table of Contents 105 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2025 (in thousands, except share/unit amounts) Description Industry Spread Above Index Floor Interest Rate Acquisition Date Maturity Date Par Amount Cost Fair Value Senior Secured Loans (continued) Streamland Media Holdings LLC Professional Services S+400 2.00% 7.79% 5/2025 5/2030 $ 7,188 $ 7,122 $ 7,188 SunMed Group Holdings, LLC(16) Health Care Equipment & Supplies S+550 0.75% 9.44% 6/2021 6/2028 14,675 14,497 14,675 SunMed Receivables I, LLC Health Care Equipment & Supplies S+395 2.00% 7.74% 10/2025 6/2028 1,906 1,888 1,906 TAUC Management, LLC(16) Health Care Providers & Services S+700 1.00% 10.82% 4/2022 2/2027 6,076 5,995 5,164 The Children's Place, Inc. Specialty Retail S+525 2.00% 8.96% 12/2025 12/2030 27,291 26,884 26,881 The Townsend Company, LLC(16) Commercial Services & Supplies S+500 1.00% 8.72% 8/2023 8/2030 14,038 13,781 14,038 Tilley Distribution, Inc.(16) Trading Companies & Distributors S+600 1.00% 9.82% 4/2022 12/2026 3,801 3,751 3,725 TPC 2022, LLC Capital Markets S+650 1.00% 10.38% 12/2024 12/2027 20,000 19,862 20,000 United Digestive MSO Parent, LLC(16) Health Care Providers & Services S+575 1.00% 9.42% 3/2023 3/2029 14,426 14,151 14,426 Velocity One, LLC Aerospace & Defense S+425 2.00% 8.04% 6/2025 6/2030 5,250 5,191 5,250 Western Veterinary Partners LLC(16) Diversified Consumer Services S+525 1.00% 8.92% 1/2024 10/2027 36,219 35,851 36,219 Wilbur-Ellis Holdings II, LLC Fertilizer & Agricultural Chemicals S+400 1.00% 7.86% 6/2025 6/2030 10,011 10,011 10,011 WMD Funding, LLC(11) Financial Services — — 11.50% 12/2024 7/2031 21,680 21,680 21,680 Total First Lien Bank Debt/ Senior Secured Loans $ 976,236 $ 978,829 First Lien Life Science Senior Secured Loans Arcutis Biotherapeutics, Inc.(3) Pharmaceuticals S+595 2.50% 9.79% 12/2021 8/2029 $ 33,425 $ 35,073 $ 36,800 Ardelyx, Inc.(3) Pharmaceuticals S+400 4.70% 8.70% 2/2022 7/2028 46,398 47,177 47,178 Centinel Spine, LLC(16) Health Care Equipment & Supplies S+530 4.35% 9.65% 2/2025 3/2030 22,460 22,454 23,035 OmniGuide Holdings, Inc. (13) Health Care Equipment & Supplies S+580 5.31% 11.21% 7/2018 5/2026 28,665 31,169 27,232 SPR Therapeutics, Inc. Health Care Technology S+515 4.00% 9.15% 1/2024 2/2029 10,949 10,984 11,359 Treace Medical Concepts, Inc. Life Sciences Tools & Services S+505 3.00% 8.78% 12/2025 1/2031 22,460 22,266 22,258 Vapotherm, Inc.(24) Health Care Equipment & Supplies S+600 4.50% 10.50% 2/2022 9/2027 13,782 14,386 14,368 Total First Lien Life Science Senior Secured Loans $ 183,509 $ 182,230 Second Lien Asset-Based Senior Secured Loans AMF Levered II, LLC Financial Services S+705 1.00% 10.98% 12/2021 8/2028 $ 29,925 $ 29,786 $ 29,925 FGI Worldwide LLC (16) Financial Services S+650 1.00% 10.22% 4/2023 4/2028 8,206 8,097 8,206 nFusion Capital Finance, LLC Financial Services S+725 1.00% 11.13% 7/2025 7/2028 35,000 34,617 35,000 WALCO Funding, LLC Financial Services S+785 1.00% 11.57% 6/2025 12/2028 26,199 25,791 26,199 Total Second Lien Asset-Backed Senior Secured Loans $ 98,291 $ 99,330 Total Senior Secured Loans $ 1,258,036 $ 1,260,389 See notes to consolidated financial statements. (7) (1) (27) (25)
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Table of Contents 106 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2025 (in thousands, except share/unit amounts) Description Industry Interest Rate Acquisition Date Maturity Date Par Amount Cost Fair Value Equipment Financing — 11.9% A&A Crane and Rigging, LLC (10) Commercial Services & Supplies 7.78% 3/2023 3/2028 $ 39 $ 39 $ 39 Air Methods Corporation (10) Passenger Airlines 7.08-7.13% 11/2021 11/2026 1,997 2,005 1,997 Boart Longyear Company (10) Metals & Mining 8.31-9.06% 5/2020 1/2026-10/2026 221 221 221 Bowman Energy Solutions, LLC (10) Commercial Services & Supplies 7.42% 7/2022 7/2026 28 28 28 CKD Holdings, Inc. (10) Ground Transportation 8.10-8.60% 9/2022 3/2026-9/2027 815 815 815 Double S Industrial Contractors, Inc. (10) Commercial Services & Supplies 8.60% 7/2023 8/2027 55 55 55 Environmental Protection & Improvement Company, LLC (10) Ground Transportation 8.25% 9/2020 10/2027 2,965 2,972 2,965 First American Commercial Bancorp, Inc. (10) Financial Services 7.50-9.00% 10/2021 10/2026-3/2027 795 795 795 No Limit Construction Services, LLC (10) Commercial Services & Supplies 7.73% 5/2023 6/2028 71 71 71 RH Land Construction, LLC & Harbor Dredging LA, Inc. (10) Construction & Engineering 8.08% 5/2023 5/2026 21 21 21 Rotten Rock Hardscaping & Tree Service (10) Diversified Consumer Services 8.21% 12/2022 12/2027 110 110 110 SLR Equipment Finance (2)(9)(17) Multi-Sector Holdings 8.50% 12/2024 7/2026 8,500 8,500 8,500 Smiley Lifting Solutions, LLC(10) Commercial Services & Supplies 7.82-8.61% 6/2022 9/2026-6/2030 4,382 4,382 4,382 The Smedley Company & Smedley Services, Inc. (10) Commercial Services & Supplies 4.07% 7/2017 1/2028 632 632 600 Trinity Equipment, Inc. (10) Commercial Services & Supplies 8.78-8.93% 5/2023 5/2028 800 800 800 U.S. Crane & Rigging, LLC (10) Commercial Services & Supplies 8.73% 12/2022 9/2028 586 586 586 Worldwide Flight Services, Inc. (10) Transportation Infrastructure 8.32-9.93% 9/2022 9/2027-8/2028 1,819 1,836 1,819 Zamborelli Enterprises Pacific Southern Foundation (10) Diversified Consumer Services 8.91% 12/2022 1/2027 217 217 217 Shares/Units SLR Equipment Finance Equity Interests (2)(9) (17)* Multi-Sector Holdings 7/2017 200 145,000 95,000 Total Equipment Financing $ 169,085 $ 119,021 Preferred Equity – 3.3% SOINT, LLC (2)(3)(4) Aerospace & Defense 0.00% 6/2012 6/2027 — $ 4,600 $ 959 Veronica Holdings, LLC (Vapotherm)(24) Health Care Equipment & Supplies 9.00% 9/2024 — 13,055,991 30,956 31,899 Total Preferred Equity $ 35,556 $ 32,858 See notes to consolidated financial statements. (1) (11)
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Table of Contents 107 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2025 (in thousands, except share/unit amounts) Description Industry Acquisition Date Shares/Units Cost Fair Value Common Equity/Equity Interests/Warrants—71.6% Assertio Holdings, Inc. (8)* Pharmaceuticals 7/2023 834 $ 51 $ 8 Bayside Parent, LLC (24)* Health Care Providers & Services 5/2023 6,526 11,411 12,497 CardioFocus, Inc. Warrants * Health Care Equipment & Supplies 3/2017 90 51 — Centrexion Therapeutics, Inc. Warrants * Pharmaceuticals 6/2019 289,102 136 22 Conventus Orthopaedics, Inc. Warrants * Health Care Equipment & Supplies 6/2016 157,500 65 — Essence Group Holdings Corporation (Lumeris) Warrants * Health Care Technology 3/2017 260,000 129 — KBH Topco LLC (Kingsbridge) (2)(5)(18) Multi-Sector Holdings 11/2020 78,750,000 145,434 172,000 Meditrina, Inc. Warrants * Health Care Equipment & Supplies 12/2022 44,049 33 27 OmniGuide Holdings, Inc. Warrants* Health Care Equipment & Supplies 9/2025 2,625,000 11 11 RD Holdco, Inc. (Rug Doctor) (2)* Diversified Consumer Services 12/2013 327,180 15,683 — RD Holdco, Inc. (Rug Doctor) Class B (2)* Diversified Consumer Services 12/2013 845 5,216 — RD Holdco, Inc. (Rug Doctor) Class C (2)* Diversified Consumer Services 12/2025 350,120 10,272 13,408 Senseonics Holdings, Inc. (3)(8)* Health Care Equipment & Supplies 7/2019 23,467 235 130 Shoes for Crews Holdings, LLC Diversified Consumer Services 6/2024 1,884 2,759 2,040 SLR-AMI Topco Blocker, LLC (15)(24)* Broadline Retail 6/2023 — 25,606 12,006 SLR Business Credit (2)(3)(19) Financial Services 4/2022 100 111,583 133,000 SLR Credit Solutions (2)(3)(20) Financial Services 12/2012 280,303 280,737 281,000 SLR Healthcare ABL (2)(3)(21) Financial Services 4/2022 32,839 34,335 37,500 SLR Senior Lending Program LLC (2)(3)(22) Asset Management & Custody Banks 12/2022 — 47,875 48,256 Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics) Health Care Equipment & Supplies 5/2018 37 110 — Veronica Holdings, LLC (Vapotherm)(24)* Health Care Equipment & Supplies 9/2024 293,203 330 639 Total Common Equity/Equity Interests/Warrants $ 692,062 $ 712,544 Total Investments (6) — 213.3% $ 2,154,739 $ 2,124,812 Description Industry Acquisition Date Maturity Date Par Amount Cost Fair Value Cash Equivalents —35.0% U.S. Treasury Bill (3.61% yield) Government 12/2025 2/2026 $ 350,000 $ 348,585 $ 348,585 Total Investments & Cash Equivalents — 248.3% $ 2,503,324 $ 2,473,397 Liabilities in Excess of Other Assets — (148.3%) (1,477,404) Net Assets — 100.0% $ 995,993 See notes to consolidated financial statements.
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Table of Contents 108 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2025 (in thousands, except share/unit amounts) (1) Floating rate debt investments typically bear interest at a rate determined by reference to the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of December 31, 2025. (2) Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Transactions during the year ended December 31, 2025 in these controlled investments are as follows: Name of Issuer Fair Value at December 31, 2024 Gross Additions Gross Reductions Realized Loss Change in Unrealized Gain (Loss) Fair Value at December 31, 2025 Interest/ Dividend/ Other Income Equipment Operating Leases, LLC $ 2,812 $ — $ 2,884 $ — $ 72 $ — $ 104 Kingsbridge Holdings, LLC 100,500 42,000 — — (66) 142,500 11,936 KBH Topco, LLC (Kingsbridge) 152,071 4,514 — — 15,415 172,000 19,022 Loyer Capital LLC 7,361 — 7,500 — 139 — 405 RD Holdco, Inc. (Rug Doctor, common equity) — — — — — — — RD Holdco, Inc. (Rug Doctor, class B) — — — — — — — RD Holdco, Inc. (Rug Doctor, class C) — 10,272 — — 3,136 13,408 — RD Holdco, Inc. (debt) 7,827 — 12,297 — 4,470 — — SLR Business Credit (revolver) — 15,500 15,500 — — — 9 SLR Business Credit 125,370 — — — 7,630 133,000 14,875 SLR Credit Solutions 288,250 — — — (7,250) 281,000 20,900 SLR Equipment Finance (equity) 107,600 — — — (12,600) 95,000 — SLR Equipment Finance (debt) 3,000 19,100 13,600 — — 8,500 357 SLR Healthcare ABL 37,850 — — — (350) 37,500 7,369 SLR Healthcare ABL (revolver) 4,000 98,700 100,900 — — 1,800 205 SLR Senior Lending Program LLC 49,091 — — — (835) 48,256 5,594 SOINT, LLC 2,500 — 641 — (900) 959 — $ 888,232 $ 190,086 $ 153,322 $ — $ 8,861 $ 933,923 $ 80,776 The change in fair value in the table above may not roll across due to the recognition of accretion income, which is included in interest income. See notes to consolidated financial statements.
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Table of Contents 109 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2025 (in thousands, except share/unit amounts) (3) Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2025, on a fair value basis, non-qualifying assets in the Company’s portfolio represented 26.1% of the total assets of the Company. (4) The Company’s investment in SOINT, LLC includes a one dollar investment in common shares. (5) Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation. (6) Aggregate net unrealized appreciation for U.S. federal income tax purposes is $19,022; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $131,599 and $112,577, respectively, based on a tax cost of $2,105,790. Unless otherwise noted, all of the Company’s investments are pledged as collateral against the borrowings outstanding on the Credit Facility (as defined below) (see note 7 to the consolidated financial statements). The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated. (7) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR or PRIME rate. These instruments are often subject to a SOFR or PRIME rate floor. (8) Denotes a Level 1 investment. (9) SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary, and NEFPASS LLC, a wholly-owned consolidated subsidiary. (10) Indicates an investment that is wholly held by the Company through NEFPASS LLC. (11) Interest is paid in kind (“PIK”). (12) Spread is S+600 cash / 0.50% PIK. (13) OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers. (14) Spread is S+475 cash / 2.75% PIK. (15) Through this entity and other intermediate entities, the Company owns approximately 5.7% of the underlying common units of ASC Holdco, LLC, a joint venture which owns certain assets of the former Amerimark Interactive, LLC. (16) Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SUNS SPV LLC. Such investments are pledged as collateral under the Senior Secured Revolving SPV Credit Facility (the “SPV Credit Facility”) (see note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company. (17) See note 11 to the consolidated financial statements. See notes to consolidated financial statements.
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Table of Contents 110 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2025 (in thousands, except share/unit amounts) (18) See note 12 to the consolidated financial statements. (19) See note 14 to the consolidated financial statements. (20) See note 10 to the consolidated financial statements. (21) See note 13 to the consolidated financial statements. (22) See note 18 to the consolidated financial statements. (23) Spread is S+200 cash / 4.75% PIK. (24) Denotes investments in which we are an “Affiliated Person” but do not exercise a controlling influence, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 5% but less than 25% of the outstanding voting securities of the investment. Transactions during the year ended December 31, 2025 in these affiliated investments are as follows: Name of Issuer Fair Value at December 31, 2024 Gross Additions Gross Reductions Realized Gain (Loss) Change in Unrealized Gain (Loss) Fair Value at December 31, 2025 Interest/ Dividend Income Bayside Opco, LLC $ 19,905 $ — $ 180 $ — $ — $ 19,725 $ 2,350 Bayside Parent, LLC (loan) 6,008 925 — — — 6,933 925 Bayside Parent, LLC (equity) 7,179 — — — 5,318 12,497 — SLR-AMI Topco Blocker, LLC 12,778 1,521 — — (2,293) 12,006 — Vapotherm, Inc. 14,254 — — — (126) 14,368 1,741 Veronica Holdings, LLC (preferred equity) 29,182 2,717 — — (470) 31,899 3,187 Veronica Holdings, LLC (common equity) 639 — — — — 639 — $ 89,945 $ 5,163 $ 180 $ — $ 2,429 $ 98,067 $ 8,203 The change in fair value in the table above may not roll across due to the recognition of accretion income, which is included in interest income. (25) Certain tranches have a spread of S+795, certain tranches have a spread of S+425 and certain tranches have a spread of S+400. (26) Certain tranches have a spread of S+650 and certain tranches have a spread of S+700 (2.00% cash/5.00% PIK). (27) Spread is S+600 cash / 1.00% PIK. * Non-income producing security. See notes to consolidated financial statements.
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Table of Contents 111 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2025 Industry Classification Percentage of TotalInvestments (at fair value) asof December 31, 2025 Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL) 30.2% Multi-Sector Holdings (includes Kingsbridge Holdings, LLC and SLR Equipment Finance) 19.7% Health Care Providers & Services 9.4% Health Care Equipment & Supplies 5.4% Capital Markets 4.9% Professional Services 4.5% Diversified Consumer Services 4.0% Pharmaceuticals 3.9% Asset Management & Custody Banks 2.3% Life Sciences Tools & Services 2.1% Commercial Services & Supplies 1.6% Transportation Infrastructure 1.5% Specialty Retail 1.5% Consumer Finance 1.4% Consumer Staples Distribution & Retail 1.4% Software 1.2% Media 1.1% Insurance 0.8% Broadline Retail 0.6% Health Care Technology 0.5% Communications Equipment 0.5% Fertilizers & Agricultural Chemicals 0.5% Aerospace & Defense 0.3% Trading Companies & Distributors 0.3% Ground Transportation 0.2% Passenger Airlines 0.1% Food Products 0.1% Metals & Mining 0.0% Construction & Engineering 0.0% Biotechnology 0.0% Automobile Components 0.0% Total Investments 100.0% See notes to consolidated financial statements.
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Table of Contents 112 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS December 31, 2024 (in thousands, except share/unit amounts) Description Industry Spread Above Index Floor Interest Rate Acquisition Date Maturity Date Par Amount Cost Fair Value Senior Secured Loans — 112.5% First Lien Bank Debt/Senior Secured Loans 33Across Inc. Media P+232 8.50% 10.82% 1/22/2024 10/31/2025 $ 2,774 $ 2,774 $ 2,774 Aegis Toxicology Sciences Corporation(16) Health Care Providers & Services S+550 1.00% 10.28% 5/7/2018 5/9/2025 13,122 13,075 13,122 Alkeme Intermediary Holdings, LLC(16) Insurance S+575 1.00% 10.08% 9/20/2023 10/28/2026 16,886 16,531 16,886 All States Ag Parts, LLC(16) Trading Companies & Distributors S+600 1.00% 10.59% 4/1/2022 9/1/2026 2,034 2,016 2,034 BayMark Health Services, Inc.(16) Health Care Providers & Services S+500 1.00% 9.59% 4/1/2022 6/11/2027 8,180 7,999 8,180 Bayside Opco, LLC(24) Health Care Providers & Services S+725 1.00% 11.73% 5/31/2023 5/31/2026 19,905 19,905 19,905 Bayside Parent, LLC(24) Health Care Providers & Services S+1000 1.00% 14.48% 5/31/2023 5/31/2026 6,008 6,008 6,008 BDG Media, Inc. Media P+525 5.50% 12.75% 7/18/2022 7/31/2025 6,249 6,249 6,249 CC SAG Holdings Corp.(Spectrum Automotive)(16) Diversified Consumer Services S+525 0.75% 9.58% 6/29/2021 6/29/2028 30,202 29,814 30,202 Copper River Seafoods, Inc. Food Products P+275 — 10.25% 12/1/2023 4/23/2025 5,088 5,088 5,088 CVAUSA Management, LLC(16) Health Care Providers & Services S+650 1.00% 10.84% 5/22/2023 5/22/2029 17,191 16,771 17,191 DeepIntent, Inc. Media P+185 5.25% 9.35% 12/1/2023 9/30/2027 37,746 37,746 37,746 Enhanced Permanent Capital, LLC(3) Capital Markets S+700 1.00% 11.97% 12/29/2020 12/29/2025 44,578 44,220 44,578 EyeSouth Eye Care Holdco LLC Health Care Providers & Services S+550 1.00% 9.96% 10/6/2022 10/5/2029 9,625 9,383 9,625 FE Advance, LLC Diversified Financial Services S+650 1.00% 10.86% 7/30/2024 7/30/2027 20,894 20,517 20,894 Fertility (ITC) Investment Holdco, LLC Health Care Providers & Services S+650 1.00% 11.74% 1/4/2023 1/3/2029 22,368 21,871 22,368 Foundation Consumer Brands, LLC(16) Personal Products S+625 1.00% 10.89% 2/12/2021 2/12/2027 25,058 24,691 25,058 Human Interest Inc. Internet Software & Services S+735 1.00% 11.90% 6/30/2022 7/1/2027 20,104 20,104 20,104 iCIMS, Inc. Software S+575 0.75% 10.38% 8/18/2022 8/18/2028 32,245 31,887 32,245 Kaseya, Inc.(16) Software S+550 0.75% 9.83% 6/22/2022 6/23/2029 24,702 24,445 24,702 Kingsbridge Holdings, LLC(2) Multi-Sector Holdings S+700 1.00% 11.71% 12/21/2018 12/21/2027 100,500 100,283 100,500 Logix Holding Company, LLC(16) Communications Equipment P+475 1.00% 12.25% 9/14/2018 3/20/2025 14,009 13,933 13,449 Luxury Asset Capital, LLC(16) Thrifts & Mortgage Finance S+675 1.00% 11.42% 7/15/2022 7/15/2027 30,500 30,149 30,500 Maxor Acquisition, Inc.(16) Health Care Providers & Services S+600 1.00% 10.44% 3/1/2023 3/1/2029 21,195 20,755 21,195 One Touch Direct, LLC Commercial Services & Supplies P+75 4.00% 8.25% 12/1/2023 3/31/2026 1,030 1,030 1,030 ONS MSO, LLC(16) Health Care Providers & Services S+625 1.00% 10.84% 2/10/2023 7/8/2026 27,772 27,317 27,772 Peter C. Foy & Associates Insurance Services, LLC(16) Insurance S+550 0.75% 9.83% 4/1/2022 11/1/2028 16,706 16,508 16,706 Plastic Management, LLC(16) Health Care Providers & Services S+500 1.00% 9.43% 4/1/2022 8/18/2027 16,965 16,471 16,965 Quantcast Corporation Commercial Services & Supplies S+525 2.00% 11.75% 6/14/2024 6/14/2029 10,502 10,380 10,502 Retina Midco, Inc.(16) Health Care Providers & Services S+575 1.00% 10.35% 12/18/2023 1/31/2026 27,301 26,985 27,847 RQM+ Corp.(16) Life Sciences Tools & Services S+675 1.00% 11.34% 8/20/2021 8/12/2029 23,398 23,201 22,462 RxSense Holdings LLC(16) Diversified Consumer Services S+500 1.00% 9.69% 4/1/2022 3/13/2026 2,628 2,582 2,628 Shoes for Crews Global, LLC Diversified Consumer Services S+650 1.00% 11.17% 6/30/2024 6/30/2029 3,398 3,398 3,398 Sightly Enterprises, Inc. Media P+475 6.00% 12.25% 1/22/2024 12/31/2026 4,813 4,813 4,813 SLR Healthcare ABL(2)(3)(21) Diversified Financial Services S+650 — 10.81% 12/31/2024 12/31/2025 4,000 4,000 4,000 Southern Orthodontic Partners Management, LLC(16) Health Care Providers & Services S+525 1.00% 9.58% 6/3/2022 7/27/2026 33,158 32,731 33,158 SPAR Marketing Force, Inc. Media P+190 — 9.40% 12/1/2023 10/10/2025 9,251 9,251 9,251 SunMed Group Holdings, LLC(16) Health Care Equipment & Supplies S+550 0.75% 10.19% 6/16/2021 6/16/2028 14,828 14,584 14,828 See notes to consolidated financial statements. (7) (1) (11) (14) (28) (23) (26)
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Table of Contents 113 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2024 (in thousands, except share/unit amounts) Description Industry Spread Above Index Floor Interest Rate Acquisition Date Maturity Date Par Amount Cost Fair Value Senior Secured Loans (continued) TAUC Management, LLC(16) Health Care Providers & Services S+700 1.00% 11.48% 4/1/2022 2/12/2027 $ 7,002 $ 6,829 $ 6,302 The Townsend Company, LLC(16) Commercial Services & Supplies S+500 1.00% 9.36% 8/17/2023 8/15/2030 19,775 19,275 19,587 Tilley Distribution, Inc.(16) Trading Companies & Distributors S+600 1.00% 10.48% 4/1/2022 12/31/2026 3,688 3,590 3,615 TPC 2022, LLC Capital Markets S+650 1.00% 10.88% 12/18/2024 12/13/2027 20,000 19,802 19,800 United Digestive MSO Parent, LLC(16) Health Care Providers & Services S+575 1.00% 10.08% 3/30/2023 3/30/2029 9,956 9,723 9,956 Urology Management Holdings, Inc. Health Care Providers & Services S+550 1.00% 9.83% 2/7/2023 6/15/2027 11,909 11,683 11,909 UVP Management, LLC Health Care Providers & Services S+625 1.00% 10.73% 9/18/2023 9/15/2025 13,653 13,518 13,653 Western Veterinary Partners LLC(16) Diversified Consumer Services S+500 1.00% 9.33% 1/19/2024 10/29/2027 23,515 23,215 23,515 WMD Funding, LLC(11) Diversified Financial Services — — 11.50% 12/4/2024 7/16/2031 18,330 18,330 18,330 Total First Lien Bank Debt/ Senior Secured Loans $ 845,430 $ 852,630 First Lien Life Science Senior Secured Loans Arcutis Biotherapeutics, Inc.(3) Pharmaceuticals S+595 2.50% 10.47% 12/22/2021 8/1/2029 $ 33,425 $ 34,531 $ 35,263 Ardelyx, Inc.(3) Pharmaceuticals S+400 4.70% 8.70% 2/23/2022 7/1/2028 39,750 40,033 40,247 Cerapedics, Inc. Biotechnology S+620 2.75% 10.72% 12/27/2022 1/1/2028 36,156 36,498 37,889 Meditrina, Inc. Health Care Equipment & Supplies S+550 3.45% 10.02% 12/20/2022 12/1/2027 5,051 5,111 5,127 OmniGuide Holdings, Inc. (13) Health Care Equipment & Supplies S+580 5.31% 11.11% 7/30/2018 11/1/2025 24,500 26,044 24,622 Outset Medical, Inc.(16) Health Care Equipment & Supplies S+515 2.75% 9.67% 11/3/2022 11/1/2027 44,727 45,353 46,405 SPR Therapeutics, Inc. Health Care Technology S+515 4.00% 9.67% 1/30/2024 2/1/2029 4,866 4,872 5,021 Vapotherm, Inc.(24) Health Care Equipment & Supplies S+600 4.50% 10.52% 2/18/2022 9/20/2027 13,782 14,147 14,254 Total First Lien Life Science Senior Secured Loans $ 206,589 $ 208,828 Second Lien Asset-Based Senior Secured Loans AMF Levered II, LLC Diversified Financial Services S+705 1.00% 11.67% 12/24/2021 8/21/2028 $ 29,925 $ 29,741 $ 29,925 FGI Worldwide LLC (3)(16) Diversified Financial Services S+650 1.00% 10.86% 4/17/2023 4/17/2028 8,206 8,058 8,206 Pasadena Private Lending Inc.(3) Diversified Financial Services S+750 1.00% 11.88% 12/16/2024 4/30/2028 9,825 9,703 9,702 Total Second Lien Asset-Backed Senior Secured Loans $ 47,502 $ 47,833 Second Lien Bank Debt / Senior Secured Loans RD Holdco, Inc.** (2) Diversified Consumer Services S+975 1.00% — 12/23/2013 10/12/2026 $ 18,228 $ 12,297 $ 7,827 Total Senior Secured Loans $ 1,111,81 8 $ 1,117,11 8 See notes to consolidated financial statements. (7) (1) (27) (25) (11)
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CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2024 (in thousands, except share/unit amounts) Description Industry Interest Rate Acquisition Date Maturity Date Par Amount Cost Fair Value Equipment Financing — 18.2% A&A Crane and Rigging, LLC (10) Commercial Services & Supplies 7.78% 3/27/2023 3/27/2028 $ 54 $ 54 $ 54 Aero Operating LLC (10) Commercial Services & Supplies 8.47-9.09% 2/12/2021 3/1/2025-11/1/2026 259 258 259 AFG Dallas III, LLC (10) Diversified Consumer Services 10.00-11.29% 8/11/2022 8/11/2026-3/1/2027 743 743 743 Air Methods Corporation (10) Airlines 7.08-7.13% 11/3/2021 11/3/2026-11/23/2026 2,569 2,591 2,569 Boart Longyear Company (10) Metals & Mining 8.31-9.77% 5/28/2020 4/1/2025-10/7/2026 997 997 997 Bowman Energy Solutions, LLC (10) Commercial Services & Supplies 7.42% 7/1/2022 7/1/2026 73 73 73 Carolina’s Contracting, LLC (10) Diversified Consumer Services 8.40-8.72% 3/7/2023 3/7/2028-5/19/2028 2,912 2,932 2,912 CKD Holdings, Inc. (10) Road & Rail 8.10-8.60% 9/22/2022 3/22/2026-9/22/2027 1,816 1,816 1,816 Clubcorp Holdings, Inc. (10) Hotels, Restaurants & Leisure 9.36-13.01% 5/27/2021 4/1/2025-5/1/2028 4,550 4,550 4,550 Complete Equipment Rentals, LLC (10) Commercial Services & Supplies 6.75-7.15% 3/23/2023 4/15/2028-6/15/2028 1,467 1,450 1,442 Dongwon Autopart Technology Inc. (10) Auto Components 7.96% 2/2/2021 1/1/2026 658 661 658 Double S Industrial Contractors, Inc. (10) Commercial Services & Supplies 8.60% 7/28/2023 8/1/2027 85 85 85 Drillers Choice, Inc. (10) Commercial Services & Supplies 8.00-10.08% 10/31/2022 11/1/2027-6/1/2029 1,089 1,091 1,089 Environmental Protection & Improvement Company, LLC (10) Road & Rail 8.25% 9/30/2020 10/1/2027 3,798 3,811 3,798 Equipment Operating Leases, LLC (2)(12) Multi-Sector Holdings 8.37% 4/27/2018 4/27/2025 2,884 2,884 2,812 Extreme Steel Crane & Rigging, LLC (10) Commercial Services & Supplies 9.52% 3/3/2023 3/3/2027 613 617 613 First American Commercial Bancorp, Inc. (10) Diversified Financial Services 7.50-9.00% 10/28/2021 10/1/2026-3/1/2027 1,566 1,567 1,566 First National Capital, LLC (10) Diversified Financial Services 9.00% 11/5/2021 7/1/2026 3,340 3,340 3,340 GMT Corporation (10) Machinery 10.71% 10/23/2018 1/1/2026 2,496 2,497 2,496 Hawkeye Contracting Company, LLC (10) Construction & Engineering 10.50% 10/8/2021 11/1/2025 347 347 347 HTI Logistics Corporation (10) Commercial Services & Supplies 9.94% 11/15/2018 9/1/2025 53 53 51 International Automotive Components Group, North America, Inc. (10) Auto Components 7.95% 6/23/2021 6/23/2025 1,001 1,002 1,001 Loc Performance Products, LLC (10) Machinery 10.50% 12/29/2022 6/1/2027 477 477 477 Loyer Capital LLC (2)(12) Multi-Sector Holdings 8.73-11.52% 5/16/2019 5/16/2026-9/25/2026 7,500 7,500 7,361 Miranda Logistics Enterprise, Inc. (10) Construction & Engineering 7.69% 4/14/2023 4/14/2028 628 628 628 Mountain Air Helicopters, Inc. (10) Commercial Services & Supplies 10.00% 7/31/2017 2/28/2025 114 114 114 Nimble Crane LLC (10) Commercial Services & Supplies 9.18% 7/13/2023 7/13/2028 762 762 762 No Limit Construction Services, LLC (10) Commercial Services & Supplies 7.73% 5/5/2023 6/1/2028 95 95 95 PCX Aerostructures LLC (10) Aerospace & Defense 9.32% 11/23/2022 12/1/2028 1,931 1,931 1,931 Rango, Inc. (10) Commercial Services & Supplies 9.33% 9/24/2019 4/1/2025 101 101 99 Rayzor’s Edge LLC (10) Diversified Consumer Services 7.69-8.27% 5/19/2023 5/18/2030-6/30/2030 624 624 624 RH Land Construction, LLC & Harbor Dredging LA, Inc. (10) Construction & Engineering 8.08% 5/10/2023 5/10/2026 69 69 69 Rotten Rock Hardscaping & Tree Service (10) Diversified Consumer Services 8.21% 12/6/2022 12/6/2027 159 159 159 Signet Marine Corporation (10) Transportation Infrastructure 8.50% 10/31/2022 6/1/2029 10,291 10,319 10,291 SLR Equipment Finance (2)(9)(17) Multi-Sector Holdings 8.50% 12/26/2024 12/1/2025 3,000 3,000 3,000 Smiley Lifting Solutions, LLC(10) Commercial Services & Supplies 7.82-8.61% 6/30/2022 9/15/2026-6/27/2030 5,195 5,195 5,195 ST Coaches, LLC (10) Road & Rail 8.50% 7/31/2017 1/25/2025 520 520 520 Star Coaches Inc. (10) Road & Rail 8.42% 3/9/2018 4/1/2025 1,719 1,719 1,633 Superior Transportation, Inc. (10) Road & Rail 10.22-10.63% 7/31/2017 1/1/2026 1,346 1,346 1,346 The Smedley Company & Smedley Services, Inc. (10) Commercial Services & Supplies 4.07% 7/31/2017 1/15/2028 970 970 901 Trinity Equipment, Inc. (10) Commercial Services & Supplies 8.78-8.93% 5/4/2023 5/4/2028-5/19/2028 1,085 1,085 1,085 Trinity Equipment Rentals, Inc. (10) Commercial Services & Supplies 7.94-7.95% 10/8/2021 11/1/2026-12/1/2026 136 136 136 U.S. Crane & Rigging, LLC (10) Commercial Services & Supplies 8.73% 12/23/2022 9/1/2028 766 766 766 Wind River Environmental, LLC (10) Diversified Consumer Services 8.43% 7/31/2019 10/5/2025 72 72 72 Womble Company, Inc. (10) Energy Equipment & Services 9.11% 12/27/2019 1/1/2025 17 17 17 Worldwide Flight Services, Inc. (10) Transportation Infrastructure 8.32-9.93% 9/23/2022 9/23/2027-8/16/2028 2,465 2,495 2,465 Zamborelli Enterprises Pacific Southern Foundation (10) Diversified Consumer Services 8.91% 12/7/2022 1/1/2027 399 401 399 Shares/Units SLR Equipment Finance Equity Interests (2) (9)(17)* Multi-Sector Holdings 7/31/2017 200 145,000 107,600 Total Equipment Financing $ 218,920 $ 181,016 Preferred Equity – 3.2% SOINT, LLC (2)(3)(4) Aerospace & Defense 0.00% 6/8/2012 6/30/2025 — $ 5,241 $ 2,500 Veronica Holdings, LLC (Vapotherm)(24) Health Care Equipment & Supplies 9.00% 9/20/2024 — 13,055,991 27,769 29,182 Total Preferred Equity $ 33,010 $ 31,682 See notes to consolidated financial statements. (1) (11)
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Table of Contents 115 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2024 (in thousands, except share/unit amounts) Description Industry AcquisitionDate Shares/Units Cost FairValue Common Equity/Equity Interests/Warrants—68.1% Assertio Holdings, Inc. (8)* Pharmaceuticals 7/31/2023 12,510 $ 51 $ 11 Bayside Parent, LLC (24)* Health Care Providers & Services 5/31/2023 6,526 11,411 7,179 CardioFocus, Inc. Warrants * Health Care Equipment & Supplies 3/31/2017 90 51 — Centrexion Therapeutics, Inc. Warrants * Pharmaceuticals 6/28/2019 289,102 136 47 Conventus Orthopaedics, Inc. Warrants * Health Care Equipment & Supplies 6/15/2016 157,500 65 — Delphinus Medical Technologies, Inc. Warrants * Health Care Equipment & Supplies 8/18/2017 444,388 74 84 Essence Group Holdings Corporation (Lumeris) Warrants * Health Care Technology 3/22/2017 260,000 129 131 KBH Topco LLC (Kingsbridge) (2)(5)(18) Multi-Sector Holdings 11/3/2020 76,125,000 140,920 152,071 Meditrina, Inc. Warrants * Health Care Equipment & Supplies 12/20/2022 44,049 33 31 RD Holdco, Inc. (Rug Doctor) (2)* Diversified Consumer Services 12/23/2013 231,177 15,683 — RD Holdco, Inc. (Rug Doctor) Class B (2)* Diversified Consumer Services 12/23/2013 522 5,216 — Senseonics Holdings, Inc. (3)(8)* Health Care Equipment & Supplies 7/25/2019 469,353 235 246 Shoes for Crews Holdings, LLC Diversified Consumer Services 6/30/2024 1,884 2,759 2,040 SLR-AMI Topco Blocker, LLC (15)(24)* Internet & Catalog Retail 6/16/2023 — 24,085 12,778 SLR Business Credit (2)(3)(19) Diversified Financial Services 4/1/2022 100 111,583 125,370 SLR Credit Solutions (2)(3)(20) Diversified Financial Services 12/28/2012 280,303 280,737 288,250 SLR Healthcare ABL (2)(3)(21) Diversified Financial Services 4/1/2022 32,839 34,335 37,850 SLR Senior Lending Program LLC (2)(3)(22) Asset Management 12/1/2022 — 47,875 49,091 Venus Concept Ltd. Warrants* (f/k/a Restoration Robotics) Health Care Equipment & Supplies 5/10/2018 396 110 — Veronica Holdings, LLC (Vapotherm)(24)* Health Care Equipment & Supplies 9/20/2027 293,203 330 639 Total Common Equity/Equity Interests/Warrants $ 675,818 $ 675,818 Total Investments (6) — 202.0% $ 2,039,566 $ 2,005,634 Description Industry AcquisitionDate MaturityDate Par Amount Cash Equivalents —40.0% U.S. Treasury Bill (4.24% yield) Government 12/31/2024 2/25/2025 $ 400,000 $ 397,510 $ 397,510 Total Investments & Cash Equivalents — 242.0% $ 2,437,076 $ 2,403,144 Liabilities in Excess of Other Assets — (142.0%) (1,410,218) Net Assets — 100.0% $ 992,926 (1) Floating rate debt investments typically bear interest at a rate determined by reference to the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), and which typically reset monthly, quarterly or semi-annually. For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of December 31, 2024. (2) Denotes investments in which we are deemed to exercise a controlling influence over the management or policies of a company, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment. Transactions during the year ended December 31, 2024 in these controlled investments are as follows: Name of Issuer Fair Value atDecember 31,2023 GrossAdditions GrossReductions RealizedLoss Change inUnrealizedGain(Loss) Fair Value at December 31, 2024 Interest/Dividend/OtherIncome Equipment Operating Leases, LLC $ 3,296 $ — $ 496 $ — $ 12 $ 2,812 $ 264 Kingsbridge Holdings, LLC 96,000 4,500 — — 113 100,500 11,972 KBH Topco, LLC (Kingsbridge) 142,000 4,323 — — 5,748 152,071 12,159 Loyer Capital LLC 7,361 — — — — 7,361 757 RD Holdco, Inc. (Rug Doctor, common equity) — — — — — — — RD Holdco, Inc. (Rug Doctor, class B) — — — — — — — RD Holdco, Inc. (debt) 7,827 — — — — 7,827 — SLR Business Credit (revolver) — 19,000 19,000 — — — 33 SLR Business Credit 90,370 30,000 — — 5,000 125,370 8,350 SLR Credit Solutions 284,000 — — — 4,250 288,250 20,500 SLR Equipment Finance (equity) 120,820 — — — (13,220) 107,600 — SLR Equipment Finance (debt) 3,850 3,000 3,850 — — 3,000 28 SLR Healthcare ABL 35,850 — — — 2,000 37,850 5,123 SLR Healthcare ABL (revolver) — 4,000 — — — 4,000 1 SLR Senior Lending Program LLC 43,899 5,000 — — 192 49,091 7,262 SOINT, LLC 3,801 63 — — (1,364) 2,500 62 $ 839,074 $ 69,886 $ 23,346 $ — $ 2,731 $ 888,232 $ 66,511 See notes to consolidated financial statements.
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Table of Contents 116 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2024 (in thousands, except share/unit amounts) (3) Indicates assets that the Company believes may not represent “qualifying assets” under Section 55(a) of the 1940 Act. If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act. As of December 31, 2024, on a fair value basis, non-qualifying assets in the portfolio represented 26.3% of the total assets of the Company. (4) The Company’s investment in SOINT, LLC includes a one dollar investment in common shares. (5) Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation. (6) Aggregate net unrealized appreciation for U.S. federal income tax purposes is $7,625; aggregate gross unrealized appreciation and depreciation for U.S. federal tax purposes is $109,461 and $101,836, respectively, based on a tax cost of $1,998,009. Unless otherwise noted, all of the Company’s investments are pledged as collateral against the borrowings outstanding on the senior secured credit facility. The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act. All investments are Level 3 unless otherwise indicated. (7) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR or PRIME rate. These instruments are often subject to a SOFR or PRIME rate floor. (8) Denotes a Level 1 investment. (9) SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC, a wholly-owned consolidated subsidiary. (10) Indicates an investment that is wholly held by the Company through NEFPASS LLC. (11) Interest is paid in kind (“PIK”). (12) Denotes a subsidiary of SLR Equipment Finance. (13) OmniGuide Holdings, Inc., Domain Surgical, Inc. and OmniGuide, Inc. are co-borrowers. (14) Kaseya may elect to defer up to 2.50% of the coupon as PIK. (15) Through this entity and other intermediate entities, the Company owns approximately 5.7% of the underlying common units of ASC Holdco, LLC, a joint venture which owns certain assets of the former Amerimark Interactive, LLC. (16) Indicates an investment that is wholly or partially held by the Company through its wholly-owned financing subsidiary SUNS SPV LLC. Such investments are pledged as collateral under the Senior Secured Revolving SPV Credit Facility (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if any, of the Company. (17) See note 11 to the consolidated financial statements. See notes to consolidated financial statements.
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Table of Contents 117 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2024 (in thousands, except share/unit amounts) (18) See note 12 to the consolidated financial statements. (19) See note 14 to the consolidated financial statements. (20) See note 10 to the consolidated financial statements. (21) See note 13 to the consolidated financial statements. (22) See note 18 to the consolidated financial statements. (23) Spread is S+200 Cash / 4.75% PIK. (24) Denotes investments in which we are an “Affiliated Person” but do not exercise a controlling influence, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 5% but less than 25% of the outstanding voting securities of the investment. Transactions during the year ended December 31, 2024 in these affiliated investments are as follows: Name of Issuer Fair Value atDecember 31,2023 GrossAdditions GrossReductions RealizedGain(Loss) Change inUnrealizedGain(Loss) Fair Value atDecember 31,2024 Interest/ DividendIncome Bayside Opco, LLC $ 19,415 $ 626 $ 136 $ — $ — $ 19,905 $ 2,543 Bayside Parent, LLC (loan) 5,153 855 — — — 6,008 850 Bayside Parent, LLC (equity) 3,815 — — — 3,364 7,179 — SLR-AMI Topco Blocker, LLC 15,867 — — — (3,089) 12,778 — Vapotherm, Inc. — 14,080 — — 108 14,254 488 Veronica Holdings, LLC (preferred equity) — 27,644 — — 1,413 29,182 845 Veronica Holdings, LLC (common equity) — 330 — — 309 639 — $ 44,250 $ 43,535 $ 136 $ — $ 2,105 $ 89,945 $ 4,726 (25) Certain tranches have a spread of S+795, certain tranches have a spread of S+425 and certain tranches have a spread of S+400. (26) Certain tranches have a spread of S+650 and certain tranches have a spread of S+700 (5.00% PIK/2.00% Cash). (27) Spread is S+600 Cash / 1.00% PIK. (28) Certain tranches have a spread of S+550 and certain tranches have a spread of S+650. * Non-income producing security. ** Investment is on non-accrual status. See notes to consolidated financial statements.
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Table of Contents 118 SLR INVESTMENT CORP. CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2024 (in thousands) Industry Classification Percentage of TotalInvestments (at fairvalue) as ofDecember 31, 2024 Diversified Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL) 27.7% Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment Operating Leases, LLC and Loyer Capital LLC) 18.6% Health Care Providers & Services 13.6% Health Care Equipment & Supplies 6.8% Pharmaceuticals 3.8% Diversified Consumer Services 3.3% Capital Markets 3.2% Media 3.0% Software 2.8% Asset Management 2.4% Commercial Services & Supplies 2.2% Biotechnology 1.9% Insurance 1.7% Thrifts & Mortgage Finance 1.5% Personal Products 1.2% Life Sciences Tools & Services 1.1% Internet Software & Services 1.0% Communications Equipment 0.7% Internet & Catalog Retail 0.6% Transportation Infrastructure 0.6% Road & Rail 0.5% Trading Companies & Distributors 0.3% Health Care Technology 0.3% Food Products 0.3% Hotels, Restaurants, & Leisure 0.2% Aerospace & Defense 0.2% Machinery 0.1% Airlines 0.1% Auto Components 0.1% Construction & Engineering 0.1% Metals & Mining 0.1% Energy Equipment & Services 0.0% Total Investments 100.0% See notes to consolidated financial statements.
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Table of Contents 119 SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 (in thousands, except share amounts) Note 1. Organization SLR Investment Corp. (the “Company”, “SLRC”, “we”, “us” or “our”), a Maryland corporation formed in November 2007, is a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Furthermore, as the Company is an investment company, it continues to apply the guidance in FASB Accounting Standards Codification (“ASC”) Topic 946. In addition, for U.S. federal income tax purposes, the Company has elected to be treated, and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). On February 9, 2010, the Company priced its initial public offering, selling 5.68 million shares of common stock, including the underwriters’ over-allotment, at a price of $18.50 per share. Concurrent with this offering, the Company’s senior management purchased an additional 600,000 shares through a private placement, also at $18.50 per share. The Company’s investment objective is to maximize both current income and capital appreciation through debt and equity investments. The Company directly and indirectly invests primarily in leveraged middle market companies in the form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities. From time to time, we may also invest in public companies that are thinly traded. On April 1, 2022, we acquired SLR Senior Investment Corp., a Maryland corporation (“SUNS”), pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 1, 2021, by and among us, SUNS, Solstice Merger Sub, Inc., a Maryland corporation and our wholly-owned subsidiary (“Merger Sub”), and, solely for the limited purposes set forth therein, SLR Capital Partners, LLC (the “Investment Adviser”). Pursuant to the Merger Agreement, Merger Sub merged with and into SUNS, with SUNS continuing as the surviving company and as SUNS’s wholly-owned subsidiary (the “Merger”) and, immediately thereafter, SUNS merged with and into us, with us continuing as the surviving company (together with the Merger, the “Mergers”). In accordance with the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of SUNS’s common stock was converted into the right to receive 0.7796 shares of our common stock (with SUNS’s stockholders receiving cash in lieu of fractional shares of our common stock). As a result of the Mergers, we issued an aggregate of 12,511,825 shares of our common stock to former SUNS stockholders. Note 2. Significant Accounting Policies The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Company and certain wholly-owned subsidiaries. The consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of the operations and financial condition for the periods presented. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts may have been reclassified to conform to the current period presentation. The preparation of consolidated financial statements in conformity with GAAP and pursuant to the requirements for reporting on Form 10-K and Regulation S-X, as appropriate, also requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements, have been included. The significant accounting policies consistently followed by the Company are: (a) Investment transactions are accounted for on the trade date.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) (b) Under procedures established by the board of directors (the “Board”), we value investments, including certain senior secured debt, subordinated debt and other debt securities with maturities greater than 60 days, for which market quotations are readily available and deemed to represent fair value under GAAP, at such market quotations (unless they are deemed not to represent fair value). A market quotation is readily available for a security only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the Company can access at the measurement date, provided that a quotation will not be readily available if it is not reliable. If the Company anticipates using a market quotation for a security, it will also monitor for circumstances that may necessitate the use of fair value, such as significant events that may cause concern over the reliability of a market quotation. We attempt to obtain market quotations from at least two brokers or dealers (if available, otherwise from a principal market maker or a primary market dealer or other independent pricing service). We utilize mid- market pricing as a practical expedient for fair value unless a different point within the range is more representative. If and when market quotations are deemed not to represent fair value, we may utilize independent third-party valuation firms to assist us in determining the fair value of material assets. Accordingly, such investments go through our multi-step valuation process as described below. In each such case, independent valuation firms, that may from time to time be engaged by the Board, consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations. Debt investments with maturities of 60 days or less shall each be valued at cost plus accreted discount, or minus amortized premium, which is expected to approximate fair value, unless such valuation, in the judgment of the Investment Adviser, does not represent fair value, in which case such investments shall be valued at fair value as determined in good faith by or under the direction of the Board. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board. Such determination of fair values involves subjective judgments and estimates. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value under GAAP, the Board has approved a multi-step valuation process each quarter, as described below: (1) our quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals of the Investment Adviser responsible for the portfolio investment; (2) preliminary valuation conclusions are then documented and discussed with senior management of the Investment Adviser; (3) independent valuation firms engaged by the Board conduct independent appraisals and review the Investment Adviser’s preliminary valuations and make their own independent assessment for all material assets; (4) the audit committee of the Board reviews the preliminary valuation of the Investment Adviser and that of the independent valuation firm and responds to the valuation recommendation of the independent valuation firm, if any, to reflect any comments; and (5) the Board discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm, if any, and the audit committee. The valuation principles set forth above may be modified from time to time, in whole or in part, as determined by the Board in its sole discretion. The Board will also (1) periodically assess and manage valuation risks; (2) establish and apply fair value methodologies; (3) test fair value methodologies; (4) oversee and evaluate third-party pricing services, as applicable; (5) oversee the reporting required by Rule 2a-5 under the 1940 Act; and (6) maintain recordkeeping requirements under Rule 2a-5. Investments in all asset classes are valued utilizing a market approach, an income approach, or both approaches, as appropriate. However, in accordance with ASC 820-10, certain investments that qualify as investment companies in accordance with ASC 946 may be valued using net asset value as a practical expedient for fair value. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation approaches to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in fair value pricing our investments include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 121 business, comparisons of financial ratios of peer companies that are public, M&A comparables, our principal market (as the reporting entity) and enterprise values, among other factors. When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process. For the fiscal year ended December 31, 2025, there was no change to the Company’s valuation approaches or techniques and the nature of the related inputs considered in the valuation process. ASC Topic 820 classifies the inputs used to measure these fair values into the following hierarchy: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the Company at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices. Level 3: Unobservable inputs for the asset or liability. In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The exercise of judgment is based in part on our knowledge of the asset class and our prior experience. (c) Gains or losses on investments are calculated by using the specific identification method. (d) The Company records dividend income and interest, adjusted for amortization of premium and accretion of discount, on an accrual basis. Loan origination fees, original issue discount, and market discounts are capitalized and we amortize such amounts into income using the effective interest method. Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income. We record call premiums received on loans repaid as interest income when we receive such amounts. Capital structuring fees, amendment fees, consent fees, and any other non-recurring fee income as well as a management fee and other fee income for services rendered, if any, are recorded as other income when earned. (e) The Company intends to comply with the applicable provisions of the Code pertaining to RICs to make distributions of taxable income sufficient to relieve it of substantially all U.S. federal income taxes. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. The Company will accrue excise tax on such estimated excess taxable income as appropriate. (f) Book and tax basis differences relating to stockholder distributions and other permanent book and tax differences are typically reclassified among the Company’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from GAAP; accordingly, at December 31, 2025, $1,048 was reclassified on our balance sheet between accumulated distributable net loss and paid-in capital in excess of par. Total earnings and net asset value are not affected. (g) Distributions to common stockholders are recorded as of the record date. The amount to be paid out as a distribution is determined by the Board. Net realized capital gains, if any, are generally distributed or deemed distributed at least annually. (h) In accordance with Regulation S-X and ASC Topic 810—Consolidation, the Company consolidates its interest in controlled investment company subsidiaries, financing subsidiaries and certain wholly-owned holding companies that serve to facilitate investment in portfolio companies. In addition, the Company may also consolidate any controlled operating companies substantially all of whose business consists of providing services to the Company. (i) The accounting records of the Company are maintained in U.S. dollars. Any assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. The Company will not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations would be included with the net unrealized gain or loss from investments. The Company’s investments in foreign securities, if any, may involve certain risks, including without limitation: foreign exchange restrictions, expropriation, taxation or other political, social or economic risks, all of which could affect the market and/or credit risk of the investment. In addition, changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments in terms of U.S. dollars and therefore the earnings of the Company.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 122 (j) In accordance with ASC 835-30, the Company reports origination and other expenses related to certain debt issuances as a direct deduction from the carrying amount of the debt liability. Applicable expenses are deferred and amortized using either the effective interest method or the straight-line method over the stated life. The straight-line method may be used on revolving facilities and/or when it approximates the effective yield method. (k) The Company may enter into forward exchange contracts in order to hedge against foreign currency risk. These contracts are marked-to-market by recognizing the difference between the contract exchange rate and the current market rate as unrealized appreciation or depreciation. Realized gains or losses are recognized when contracts are settled. (l) The Company records expenses related to shelf registration statements and applicable equity offering costs as prepaid assets. These expenses are typically charged as a reduction of capital upon the sale of shares or expensed, in accordance with ASC 946-20-25. (m) Investments that are expected to pay regularly scheduled interest in cash are generally placed on non-accrual status when principal or interest cash payments are past due 30 days or more (90 days or more for equipment financing) and/or when it is no longer probable that principal or interest cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest are paid in cash and, in management’s judgment, are likely to continue timely payment of their remaining principal and interest obligations. Cash interest payments received on such investments may be recognized as income or applied to principal depending on management’s judgment. (n) The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less would qualify, with limited exceptions. The Company believes that certain U.S. Treasury bills, repurchase agreements and other high-quality, short-term debt securities would qualify as cash equivalents. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standard updates (“ASU”) recently issued by the FASB. ASUs not listed were assessed by the Company and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company adopted ASU 2023- 09 effective on December 31, 2025 and concluded that the application of this guidance did not have any material impact on its consolidated financial statements. Note 3. Agreements The Company has entered into the Third Amended and Restated Investment Advisory and Management Agreement (the “Advisory Agreement”) with the Investment Adviser, under which the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components—a base management fee and a performance-based incentive fee. On April 1, 2022, in connection with the consummation of the Mergers, the Company entered into a letter agreement (the “Letter Agreement”) pursuant to which the Investment Adviser voluntarily agreed to a permanent 25 basis point reduction of the annual base management fee rate payable by the Company to the Investment Adviser pursuant to the Advisory Agreement. Following the Letter Agreement, the base management fee is determined by taking the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters calculated at an annual rate of 1.50% on gross assets up to 200% of the Company’s total net assets as of the immediately preceding quarter end and 1.00% on gross assets that exceed 200% of the Company’s total net assets as of the immediately preceding quarter end. For purposes of computing the base management fee, gross assets exclude temporary assets acquired at the end of each fiscal quarter for purposes of preserving investment flexibility in the next fiscal quarter. Temporary assets include, but are not limited to, U.S. Treasury bills, other short-term U.S. government or government agency securities, repurchase agreements or cash borrowings.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 123 The performance-based incentive fee has two parts, as follows: one part is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement, and any interest expense and distributions paid on any issued and outstanding preferred stock, but excluding the performance-based incentive fee). Pre-incentive fee net investment income does not include any realized capital gains or losses, or unrealized capital appreciation or depreciation. Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7% annualized). The Company pays the Investment Adviser a performance-based incentive fee with respect to the Company’s pre-incentive fee net investment income in each calendar quarter as follows: (1) no performance-based incentive fee in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the hurdle rate; (2) 100% of the Company’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.1875% in any calendar quarter; and (3) 20% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 2.1875% in any calendar quarter. These calculations are appropriately pro-rated for any period of less than three months. The second part of the performance-based incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Advisory Agreement, as of the termination date), and will equal 20% of the Company’s cumulative realized capital gains less cumulative realized capital losses, unrealized capital depreciation (unrealized depreciation on a gross investment-by- investment basis at the end of each calendar year) and all net capital gains upon which prior performance-based capital gains incentive fee payments were previously made to the Investment Adviser. For financial statement purposes, the second part of the performance-based incentive fee is accrued based upon 20% of cumulative net realized gains and net unrealized capital appreciation. No accrual was required for the fiscal years ended December 31, 2025, 2024 and 2023. For the fiscal years ended December 31, 2025, 2024 and 2023, the Company recognized $31,207, $31,389 and $31,661, respectively, in base management fees and $21,723, $24,039 and $22,898, respectively, in performance-based incentive fees. For the fiscal years ended December 31, 2025, 2024 and 2023, $48, $153 and $500, respectively, of such performance-based incentive fees were waived. The Investment Adviser has agreed to waive incentive fees resulting from income earned due to the accretion of purchase discount allocated to investments acquired as a result of the Mergers. Fees waived pursuant to the above are not subject to recoupment by the Investment Adviser. The Company has also entered into an Administration Agreement with SLR Capital Management, LLC (the “Administrator”) under which the Administrator provides administrative services to the Company. For providing these services, facilities and personnel, the Company reimburses the Administrator for the Company’s allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent. The Administrator will also provide, on the Company’s behalf, managerial assistance to those portfolio companies to which the Company is required to provide such assistance. The Company typically reimburses the Administrator on a quarterly basis. For the fiscal years ended December 31, 2025, 2024 and 2023, the Company recognized expenses under the Administration Agreement of $5,815, $5,520 and $5,899, respectively. No managerial assistance fees were accrued or collected for the fiscal years ended December 31, 2025, 2024 and 2023. Note 4. Net Asset Value Per Share At December 31, 2025, the Company’s total net assets and net asset value per share were $995,993 and $18.26, respectively. This compares to total net assets and net asset value per share at December 31, 2024 of $992,926 and $18.20, respectively.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 124 Note 5. Earnings Per Share The following table sets forth the computation of basic and diluted net increase in net assets per share resulting from operations, pursuant to ASC 260-10, for the years ended December 31, 2025, 2024 and 2023: Year EndedDecember 31, 2025 Year EndedDecember 31, 2024 Year EndedDecember 31, 2023 Earnings per share (basic & diluted) Numerator—net increase in net assets resulting from operations: $ 92,537 $ 95,757 $ 76,388 Denominator—weighted average shares: 54,554,634 54,554,634 54,554,638 Earnings per share: $ 1.70 $ 1.76 $ 1.40
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 125 Note 6. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuations used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access. Level 2. Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: a) Quoted prices for similar assets or liabilities in active markets; b) Quoted prices for identical or similar assets or liabilities in non-active markets; c) Pricing models whose inputs are observable for substantially the full term of the asset or liability; and d) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. Level 3. Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s and, if applicable, an independent third-party valuation firm’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Gains and losses for assets and liabilities categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Such reclassifications involving Level 3 assets and liabilities are reported as transfers in/out of Level 3 as of the end of the quarter in which the reclassifications occur. Within the fair value hierarchy tables below, cash and cash equivalents are excluded but could be classified as Level 1. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, as of December 31, 2025 and December 31, 2024: Fair Value Measurements As of December 31, 2025 Level 1 Level 2 Level 3 Measured atNet Asset Value* Total Assets: Senior Secured Loans $ — $ — $ 1,260,389 $ — $ 1,260,389 Equipment Financing — — 119,021 — 119,021 Preferred Equity — — 32,858 — 32,858 Common Equity/Equity Interests/Warrants 138 — 664,150 48,256 712,544 Total Investments $ 138 $ — $ 2,076,418 $ 48,256 $ 2,124,812
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 126 Fair Value Measurements As of December 31, 2024 Level 1 Level 2 Level 3 Measured atNet Asset Value* Total Assets: Senior Secured Loans $ — $ — $ 1,117,118 $ — $ 1,117,118 Equipment Financing — — 181,016 — 181,016 Preferred Equity — — 31,682 — 31,682 Common Equity/Equity Interests/Warrants 257 — 626,470 49,091 675,818 Total Investments $ 257 $ — $ 1,956,286 $ 49,091 $ 2,005,634 * In accordance with ASC 820-10, certain investments that are measured using the net asset value per share (or its equivalent) as a practical expedient for fair value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Assets and Liabilities. The portfolio investment in this category is SLR Senior Lending Program LLC (“SSLP”). See Note 18 for more information on this investment, including its investment strategy and the Company’s unfunded equity commitment to SSLP. This investment is not redeemable by the Company absent an election by the members of the entity to liquidate all investments and distribute the proceeds to the members. The following table provides a summary of the changes in fair value of Level 3 assets for the year ended December 31, 2025, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2025: Fair Value Measurements Using Level 3 Inputs Senior SecuredLoans EquipmentFinancing Preferred Equity Common Equity/EquityInterests/Warrants Total Fair value, December 31, 2024 $ 1,117,118 $ 181,016 $ 31,682 $ 626,470 $ 1,956,286 Total gains or losses included in earnings: Net realized gain (loss) 2,257 (34) — (74) 2,149 Net change in unrealized gain (loss) (2,946) (12,161) (1,370) 21,436 4,959 Purchase of investment securities* 1,107,901 19,045 3,187 16,318 1,146,451 Proceeds from dispositions of investment securities (963,941) (68,845) (641) — (1,033,427) Transfers in/out of Level 3 — — — — — Fair value, December 31, 2025 $ 1,260,389 $ 119,021 $ 32,858 $ 664,150 $ 2,076,418 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: Net change in unrealized gain (loss) $ 2,107 $ (12,161) $ (1,370) $ 21,436 $ 10,012 * Includes PIK capitalization and accretion of discount. While the Company has not made an election to apply the fair value option of accounting to any of its current debt obligations, if the Company’s debt obligations were carried at fair value at December 31, 2025, the fair value of the Credit Facility, SPV Credit Facility, 2026 Unsecured Notes, 2027 Unsecured Notes, 2027 Series F Unsecured Notes, 2027 Series G Unsecured Notes, 2028 Series H Unsecured Notes, 2028 Series I Unsecured Notes and 2028 Series J Unsecured Notes would be $505,386, $165,050, $73,875, $48,250, $131,625 $49,368, $50,250, $50,000 and $75,000, respectively and would be reflected in Level 3.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 127 The following table provides a summary of the changes in fair value of Level 3 assets for the year ended December 31, 2024, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2024: Fair Value Measurements Using Level 3 Inputs Senior SecuredLoans EquipmentFinancing Preferred Equity Common Equity/EquityInterests/Warrants Total Fair value, December 31, 2023 $ 1,277,539 $ 256,819 $ 3,801 $ 572,427 $ 2,110,586 Total gains or losses included in earnings: Net realized loss (1,400) — — (668) (2,068) Net change in unrealized gain (loss) (3,598) (12,646) 49 17,726 1,531 Purchase of investment securities* 411,598 2,852 27,832 37,434 479,716 Proceeds from dispositions of investment securities (567,021) (66,009) — (449) (633,479) Transfers in/out of Level 3 — — — — — Fair value, December 31, 2024 $ 1,117,118 $ 181,016 $ 31,682 $ 626,470 $ 1,956,286 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held by the Company at the end of the period: Net change in unrealized gain (loss) $ 1,533 $ (12,646) $ 49 $ 16,751 $ 5,687 * Includes PIK capitalization and accretion of discount. While the Company has not made an election to apply the fair value option of accounting to any of its current debt obligations, if the Company’s debt obligations were carried at fair value at December 31, 2024, the fair value of the Credit Facility, SPV Credit Facility, 2025 Unsecured Notes, 2026 Unsecured Notes, 2027 Unsecured Notes, 2027 Series F Unsecured Notes and 2027 Series G Unsecured Notes would be $482,043, $165,050, $84,575, $72,750, $46,875, $128,250 and $49,368, respectively and would be reflected in Level 3. Quantitative Information about Level 3 Fair Value Measurements The Company typically determines the fair value of its performing debt investments utilizing a yield analysis. In a yield analysis, a price is ascribed for each investment based upon an assessment of current and expected market yields for similar investments and risk profiles. Additional consideration is given to current contractual interest rates, relative maturities and other key terms and risks associated with an investment. Among other factors, a significant determinant of risk is the amount of leverage used by the portfolio company relative to the total enterprise value of the company, and the rights and remedies of our investment within each portfolio company. Significant unobservable quantitative inputs typically used in the fair value measurement of the Company’s Level 3 assets and liabilities primarily reflect current market yields, including indices, and readily available quotes from brokers, dealers, and pricing services as indicated by comparable assets and liabilities, as well as enterprise values, returns on equity and earnings before income taxes, depreciation and amortization (“EBITDA”) multiples of similar companies, and comparable market transactions for equity securities.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 128 Quantitative information about the Company’s Level 3 asset and liability fair value measurements as of December 31, 2025 is summarized in the table below: Asset or Liability Fair Value at December 31, 2025 Principal Valuation Technique/Methodology Unobservable Input Range (Weighted Average) Senior Secured Loans Asset $ 1,260,389 Income Approach Market Yield 8.2% – 26.9% (11.1%) Equipment Financing Asset $ 24,021 Income Approach Market Yield 8.0% –8.5% (8.2%) $ 95,000 Market Multiple Comparable Multiple 1.1x-1.3x (1.2x) Preferred Equity Asset $ 31,899 Income Approach Market Yield 9.0% –9.0% (9.0%) $ 959 Recovery Analysis Recoverable Amount N/A Common Equity/Equity Interests/Warrants Asset $ 493,650 Market Multiple Comparable Multiple 1.3x –13.3x (4.1x) $ 170,500 Market Approach Return on Equity 2.6% –26.9% (20.3%) (1) Includes $95,000 of investments valued using an implied multiple. (2) Includes $60 of investments valued using a Black-Scholes model, $639 of investments using a transaction price, $15,448 of investments using a recovery analysis, $196,503 of investments valued using an EBITDA multiple and $281,000 of investments using an implied multiple. Quantitative information about the Company’s Level 3 asset and liability fair value measurements as of December 31, 2024 is summarized in the table below: Asset or Liability Fair Value at December 31, 2024 Principal Valuation Technique/Methodology Unobservable Input Range (Weighted Average) Senior Secured Loans Asset $ 1,095,842 Income Approach Market Yield 8.5% – 18.5% (11.8%) Asset $ 21,276 Recovery Analysis Recoverable Amount N/A Equipment Financing Asset $ 73,416 Income Approach Market Yield 8.5% –9.0% (9.0%) $ 107,600 Market Multiple(1) Comparable Multiple 1.2x-1.5x (1.5x) Preferred Equity Asset $ 29,182 Income Approach Market Yield 9.0% –9.0% (9.0%) $ 2,500 Recovery Analysis Recoverable Amount N/A Common Equity/Equity Interests/Warrants Asset $ 175,000 Market Multiple(2) Comparable Multiple 5.5x –12.3x (9.1x) $ 451,470 Market Approach Return on Equity 7.8% –21.7% (11.3%) (1) Includes $107,600 of investments valued using an implied multiple. (2) Includes $293 of investments valued using a Black-Scholes model, $639 of investments using a transaction price, $2,040 of investments using a recovery analysis and $172,028 of investments valued using an EBITDA multiple. Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs used in deriving bid-ask spreads, if applicable, could result in significantly lower or higher fair value measurements for such assets and liabilities. Generally, an increase in market yields or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Company’s investments. Weighted averages in the above tables are calculated based on fair value of the underlying assets. (1) (2)
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) Note 7. Debt Our debt obligations consisted of the following as of December 31, 2025 and December 31, 2024: December 31, 2025 December 31, 2024 Facility Face Amount Carrying Value Face Amount Carrying Value Credit Facility $ 505,386 $ 499,287 $ 482,043 $ 474,715 SPV Credit Facility 165,050 163,975 165,050 163,335 2025 Unsecured Notes — — 85,000 84,956 2026 Unsecured Notes 75,000 74,870 75,000 74,741 2027 Unsecured Notes 50,000 49,991 50,000 49,979 2027 Series F Unsecured Notes 135,000 134,993 135,000 134,998 2027 Series G Unsecured Notes 49,000 48,925 49,000 48,970 2028 Series H Unsecured Notes 50,000 49,944 — — 2028 Series I Unsecured Notes 50,000 49,933 — — 2028 Series J Unsecured Notes 75,000 74,436 — — $ 1,154,436 $ 1,146,354 $ 1,041,093 $ 1,031,694 (1) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $6,099 and $7,328 as of December 31, 2025 and December 31, 2024, respectively. (2) Carrying Value equals the Face Amount net of unamortized debt issuance costs/market discount of $1,075 and $1,715 as of December 31, 2025 and December 31, 2024, respectively. (3) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $44 as of December 31, 2024. (4) Carrying Value equals the Face Amount net of unamortized market discount of $130 and $259 as of December 31, 2025 and December 31, 2024, respectively. (5) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $9 and $21 as of December 31, 2025 and December 31, 2024, respectively. (6) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $7 and $2 as of December 31, 2025 and December 31, 2024, respectively. (7) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $75 and $30 as of December 31, 2025 and December 31, 2024, respectively. (8) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $56 as of December 31, 2025. (9) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $67 as of December 31, 2025. (10) Carrying Value equals the Face Amount net of unamortized debt issuance costs of $564 as of December 31, 2025. Unsecured Notes On August 21, 2025, the Company closed a private offering of $75,000 of unsecured notes due 2028 (the “2028 Series J Unsecured Notes”) with a fixed interest rate of 5.95% and a maturity date of August 21, 2028. Interest on the 2028 Series J Unsecured Notes is due semi-annually on February 21 and August 21. The 2028 Series J Unsecured Notes were issued in a private placement only to qualified institutional buyers. On July 30, 2025, the Company closed a private offering of $50,000 of unsecured notes due 2028 (the “2028 Series I Unsecured Notes”) with a fixed interest rate of 5.96% and a maturity date of July 30, 2028. Interest on the 2028 Series I Unsecured Notes is due semi- annually on January 30 and July 30. The 2028 Series I Unsecured Notes were issued in a private placement only to qualified institutional buyers. On February 18, 2025, the Company closed a private offering of $50,000 of unsecured notes due 2028 (the “2028 Series H Unsecured Notes”) with a fixed interest rate of 6.14% and a maturity date of February 18, 2028. Interest on the 2028 Series H Unsecured Notes is due semi-annually on February 18 and August 18. The 2028 Series H Unsecured Notes were issued in a private placement only to qualified institutional buyers. On December 16, 2024, the Company closed a private offering of $49,000 of the 2027 Series G Unsecured Notes with a fixed interest rate of 6.24% and a maturity date of December 16, 2027. Interest on the 2027 Series G Unsecured Notes is due semi-annually on June 16 and December 16. The 2027 Series G Unsecured Notes were issued in a private placement only to qualified institutional buyers. (1) (1) (2) (2) (3) (4) (4) (5) (5) (6) (6) (7) (7) (8) (9) (10)
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) On April 1, 2022, the Company entered into an assumption agreement (the “Note Assumption Agreement”), effective as of the closing of the Mergers. The Note Assumption Agreement relates to the Company’s assumption of $85,000 in aggregate principal amount of five-year, 3.90% senior unsecured notes, due March 31, 2025 (the “2025 Unsecured Notes”) and other obligations of SUNS under the Note Purchase Agreement, dated as of March 31, 2020 (the “Note Purchase Agreement”), by and among SUNS and certain institutional investors. Interest on the 2025 Unsecured Notes was due semi-annually on March 31 and September 30. Pursuant to the Note Assumption Agreement, the Company expressly assumed on behalf of SUNS the due and punctual payment of the principal of (and premium, if any) and interest on all the 2025 Unsecured Notes outstanding, and the due and punctual performance and observance of every covenant and every condition of the Note Purchase Agreement, to be performed or observed by SUNS. The 2025 Unsecured Notes were repaid in full at maturity on March 31, 2025. On January 6, 2022, the Company closed a private offering of $135,000 of the 2027 Series F Unsecured Notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027. Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6. The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional buyers. On September 14, 2021, the Company closed a private offering of $50,000 of the 2027 Unsecured Notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027. Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14. The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers. On December 18, 2019, the Company closed a private offering of $75,000 of the 2026 Unsecured Notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026. Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15. The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers. Revolving and Term Loan Facilities On August 16, 2024, the Company closed on Amendment No. 3 to its August 28, 2019 senior secured credit agreement (the “Credit Facility”). Following the amendment and several commitment between the fourth quarter of 2024 and the third quarter of 2025 and a commitment decrease in the fourth quarter of 2025 related to a lender who did not extend their commitment with Amendment No. 3, the Credit Facility is now composed of $695,000 of revolving credit and $153,138 of term loans. Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of 1.75%-2.00% or the alternate base rate plus 0.75%-1.00%. The Credit Facility has a 0% floor, matures in August 2029 and includes ratable amortization in the final year. Subsequent to Amendment No. 4 on December 3, 2024, the Credit Facility may be increased up to $900,000 with additional new lenders or an increase in commitments from current lenders. The Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Credit Facility contains certain financial covenants that, among other things, require the Company to maintain a minimum stockholder’s equity and a minimum asset coverage ratio. At December 31, 2025, outstanding USD equivalent borrowings under the Credit Facility totaled $505,386, composed of $352,248 of revolving credit and $153,138 of term loans. On April 1, 2022, the Company entered into an assumption agreement (the “CF Assumption Agreement”), effective as of the closing of the Mergers. The CF Assumption Agreement relates to the Company’s assumption of the Revolving Credit Facility, originally entered into on August 26, 2011 (as amended from time to time, the “SPV Credit Facility”), by and among SUNS SPV LLC (the “SUNS SPV”), a wholly-owned subsidiary of SUNS, acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto. Currently, subsequent to an August 30, 2024 amendment, the commitment under the SPV Credit Facility is $275,000. The stated interest rate on the SPV Credit Facility is SOFR plus 2.25%-2.75% with no SOFR floor requirement and the current final maturity date is August 30, 2028. The SPV Credit Facility is secured by all of the assets held by SUNS SPV. Under the terms of the SPV Credit Facility and related transaction documents, the Company as successor to SUNS, and SUNS SPV, as applicable, have made certain customary representations and warranties and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SPV Credit Facility also includes usual and customary events of default for credit facilities of this nature. At December 31, 2025, outstanding USD equivalent borrowings under the SPV Credit Facility totaled $165,050. Certain covenants on our issued debt may restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code. The average annualized interest cost for all borrowings for the years ended December 31, 2025 and December 31, 2024 was 5.67% and 5.91%, respectively. These costs are exclusive of other credit facility expenses such as unused fees, agency fees and other
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 131 prepaid expenses related to establishing and/or amending the Credit Facility, the SPV Credit Facility, the 2024 Unsecured Notes, the 2025 Unsecured Notes, the 2026 Unsecured Notes, the 2027 Unsecured Notes, the 2027 Series F Unsecured Notes, the 2027 Series G Unsecured Notes, the 2028 Series H Unsecured Notes, the 2028 Series I Unsecured Notes and the 2028 Series J Unsecured Notes (collectively the “Debt Instruments”), if any. The maximum amounts borrowed on the Debt Instruments during the year ended December 31, 2025 and December 31, 2024 were $1,223,260 and $1,192,250, respectively. Note 8(a). Income Tax Information and Distributions to Stockholders The tax character of distributions for the fiscal years ended December 31, 2025, 2024 and 2023 were as follows (1): 2025 2024 2023 Ordinary income $ 87,935 98.3% $ 89,470 100.0% $ 89,470 100.0% Capital gains — 0.0% — 0.0% — 0.0% Return of capital 1,535 1.7% — 0.0% — — Distributions recognized in subsequent year — 0.0% — 0.0% — 0.0% Total distributions $ 89,470 100.0% $ 89,470 100.0% $ 89,470 100.0% As of December 31, 2025, 2024 and 2023, the total accumulated earnings (loss) on a tax basis were as follows (1): 2025 2024 2023 Undistributed ordinary income $ — $ 7,159 $ 1,793 Undistributed long-term net capital gains — — — Total undistributed net earnings — 7,159 1,793 Post-October capital losses — — — Capital loss carryforward (140,961) (142,373) (138,561) Other book/tax temporary differences 2,363 2,363 2,364 Net unrealized appreciation 19,022 7,625 2,567 Total tax accumulated loss $ (119,576) $ (125,226) $ (131,837) (1) Tax information for the fiscal years ended December 31, 2025, 2024 and 2023 are/were estimates and are not final until the Company files its tax returns, typically in September or October each year. (2) Includes capital loss carryforward acquired from the Mergers which is subject to limitations under IRC Sections 381-384. The Company recognizes in its consolidated financial statements the tax effect of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. To the best of our knowledge, we did not have any uncertain tax positions that met the recognition or measurement criteria of ASC 740-10-25 nor did we have any unrecognized tax benefits as of the periods presented herein. Although we file federal and state tax returns, our major tax jurisdiction is federal. Our tax returns for each of our federal tax years since 2022 remain subject to examination by the Internal Revenue Service and the state department of revenue. The capital loss carryforwards shown above do not expire. Note 8(b). Other Tax Information (unaudited) For the fiscal years ended December 31, 2025, 2024 and 2023, 3.82%, 12.65% and 0%, respectively of the ordinary distributions paid during the year were eligible for qualified dividend income treatment and the dividends received deduction for corporate stockholders. For the fiscal years ended December 31, 2025, 2024, and 2023, 87.29%, 86.46% and 90.05%, respectively, of each of the ordinary distributions paid during the year represented interest-related dividends. For the fiscal years ended December 31, 2025, 2024 and 2023, none of the distributions represented short-term capital gains dividends. 2 2 2
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 132 Note 9. Financial Highlights The following is a schedule of financial highlights for the respective years: Year Ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023 Year Ended December 31, 2022 Year ended December 31, 2021 Per Share Data: (a) Net asset value, beginning of year $ 18.20 $ 18.09 $ 18.33 $ 19.93 $ 20.16 Net investment income 1.59 1.76 1.69 1.48 1.44 Net realized and unrealized gain (loss) 0.11 (0.01) (0.29) (1.13) * (0.03) Net increase in net assets resulting from operations 1.70 1.75 1.40 0.35 1.41 Issuance of common stock in connection with the Mergers — — — (0.33) — Anti-dilution — — — 0.02 — Distributions to stockholders (see note 8(a)): From distributable earnings (1.64) (1.64) (1.64) (1.12) (0.98) From return of capital — — — (0.52) (0.66) Net asset value, end of year $ 18.26 $ 18.20 $ 18.09 $ 18.33 $ 19.93 Per share market value, end of year $ 15.46 $ 16.16 $ 15.03 $ 13.91 $ 18.43 Total Return(b) 5.81% 19.20% 19.42% (16.09)% 14.66% Net assets, end of year $ 995,993 $ 992,926 $ 986,639 $ 999,731 $ 842,281 Shares outstanding, end of year 54,554,634 54,554,634 54,554,634 54,555,380 42,260,826 Ratios to average net assets: Net investment income 8.76% 9.72% 9.33% 7.76% 7.13% Operating expenses 6.42%** 6.52%** 6.56%** 5.60%** 5.68% Interest and other credit facility expenses 6.84% 7.21% 7.34% 4.68% 3.50% Total expenses 13.26%** 13.73%** 13.90%** 10.28%** 9.18% Average debt outstanding $ 1,084,443 $ 1,114,026 $ 1,171,816 $ 994,578 $ 703,670 Portfolio turnover ratio 50.3% 22.4% 35.1% 27.4% 29.9% (a) Calculated using the average shares outstanding method, except for the issuance of common stock in connection with the Mergers, which reflects the actual amount per share for the applicable period. (b) Total return is based on the change in market price per share during the year and takes into account distributions, if any, reinvested in accordance with the dividend reinvestment plan. Total return does not include a sales load. * The amount shown may not correspond with the aggregate amount for the period as it includes the effect of the timing of the Mergers. ** The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets is shown net of the performance-based incentive fee waiver (see note 3). For the years ended December 31, 2025, December 31, 2024, December 31, 2023 and December 31, 2022, the ratios of operating expenses to average net assets would be 6.43%, 6.54%, 6.60% and 5.75%, respectively, and the ratios of total expenses to average net assets would be and 13.27%, 13.75%, 13.95% and 10.43%, respectively, without the performance-based incentive fee waiver. Note 10. SLR Credit Solutions On December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (“Crystal Financial”) for $275,000 in cash. Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit Solutions (“SLR Credit”), f/k/a Crystal Financial LLC. The remaining financial interest was held by various employees of SLR Credit, through their investment in Crystal Management LP. SLR Credit had a diversified portfolio of 23 loans having a total par value of approximately $400,000 at November 30, 2012 and a $275,000 committed revolving credit facility. On July 28, 2016, the Company purchased Crystal Management LP’s approximately 2% equity interest in SLR Credit for approximately $5,737. Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit. On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved. As of December 31, 2025, total commitments to the revolving credit facility were $300,000. As of December 31, 2025, SLR Credit had 33 funded commitments to 26 different issuers with total funded loans of approximately $404,097 on total assets of $420,735. As of December 31, 2024, SLR Credit had 27 funded commitments to 22 different issuers with total funded loans of approximately $317,565 on total assets of $364,258. As of December 31, 2025 and December 31, 2024, the largest loan outstanding totaled $29,916 and $27,879, respectively. For the same periods, the average exposure per issuer was $15,542 and $14,435, respectively. SLR Credit’s credit facility, which is non-recourse to the Company, had
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 133 approximately $215,830 and $149,997 of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025, 2024 and 2023, SLR Credit had net income of $13,823, $24,882 and $6,476, respectively, on gross income of $44,929, $55,247 and $57,800, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. SLR Credit’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. Note 11. SLR Equipment Finance On July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary Nations Equipment Finance, LLC. Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies are doing business as SLR Equipment Finance (“SLR Equipment”). SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S. based companies. We invested $209,866 in cash to effect the transaction, of which $145,000 was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC, and $64,866 was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC. On January 31, 2024, SLR Equipment entered into a $225,000 senior secured credit facility with an original maturity date of January 31, 2027. On March 1, 2024, the credit facility was expanded to $350,000 of commitments. On November 26, 2025, SLR Equipment renewed the credit facility extending the maturity date to November 26, 2028. As of December 31, 2025, SLR Equipment had 485 funded equipment-backed leases and loans to 243 different customers with a total net investment in leases and loans of approximately $299,753 on total assets of $338,285. As of December 31, 2024, SLR Equipment had 398 funded equipment-backed leases and loans to 217 different customers with a total net investment in leases and loans of approximately $324,939 on total assets of $366,258. As of December 31, 2025 and December 31, 2024, the largest position outstanding totaled $17,768 and $17,883, respectively. For the same periods, the average exposure per customer was $1,234 and $1,497, respectively. SLR Equipment’s credit facility, which is non-recourse to the Company, had approximately $237,500 and $260,974 of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025, 2024 and 2023, SLR Equipment had net income (losses) of $2,605, ($9,534) and ($6,385), respectively, on gross income of $28,603, $22,000 and $19,608, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. SLR Equipment’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. Note 12. Kingsbridge Holdings, LLC On November 3, 2020, the Company acquired 87.5% of the equity securities of Kingsbridge Holdings, LLC (“KBH”) through KBH Topco LLC (“KBHT”), a Delaware corporation. KBH is a residual focused independent mid-ticket lessor of equipment primarily to U.S. large corporate companies. The Company invested $216,596 to effect the transaction, of which $136,596 was invested to acquire 87.5% of KBHT’s equity and $80,000 in KBH’s debt. The existing management team of KBH committed to continuing to lead KBH after the transaction. Following the transaction, the Company owned 87.5% of KBHT equity and the KBH management team owned the remaining 12.5% of KBHT’s equity. On March 13, 2024, as per the terms of the original purchase agreement, the Company acquired 3.125% of KBHT’s equity from the KBH management team. On March 11, 2025, as per the terms of the original purchase agreement, the Company acquired an additional 3.125% of KBHT’s equity from the KBH management team. Effective with these purchases, the Company owns 93.75% of KBHT’s equity and the KBH management team owns the remaining 6.25%. As of December 31, 2025 and December 31, 2024, KBHT had total assets of $940,258 and $920,072, respectively. For the same periods, debt recourse to KBHT totaled $309,367 and $271,584, respectively, and non-recourse debt totaled $407,803 and $421,587, respectively. None of the debt is recourse to the Company. For the years ended December 31, 2025, 2024 and 2023, KBHT had net income of $25,098, $11,957 and $9,065, respectively, on gross income of $361,016, $341,321 and $327,363, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in KBHT’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us. KBHT’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) Note 13. SLR Healthcare ABL SUNS acquired an equity interest in SLR Healthcare ABL, f/k/a Gemino Healthcare Finance, LLC (“SLR Healthcare”), on September 30, 2013. SLR Healthcare is a commercial finance company that originates, underwrites, and manages primarily secured, asset- based loans for small and mid-sized companies operating in the healthcare industry. SUNS’s initial investment in SLR Healthcare ABL was $32,839. The management team of SLR Healthcare co-invested in the transaction and continues to lead SLR Healthcare. As of December 31, 2025, SLR Healthcare’s management team and the Company own approximately 8% and 92% of the equity in SLR Healthcare, respectively. SLRC acquired SLR Healthcare in connection with the Mergers on April 1, 2022. Effective with an amendment dated September 19, 2024, SLR Healthcare has a $160,000 non-recourse credit facility, which is expandable to $200,000 under its accordion facility. The maturity date of this facility is March 31, 2026. SLR Healthcare currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of December 31, 2025, the portfolio totaled approximately $297,750 of commitments with a total net investment in loans of $157,025 on total assets of $165,380. As of December 31, 2024, the portfolio totaled approximately $288,250 of commitments with a total net investment in loans of $130,207 on total assets of $138,494. At December 31, 2025, the portfolio consisted of 48 issuers with an average balance of approximately $3,271 versus 47 issuers with an average balance of approximately $2,770 at December 31, 2024. All of the commitments in SLR Healthcare’s portfolio are floating-rate, senior-secured, cash-pay loans. SLR Healthcare’s credit facility, which is non-recourse to us, had approximately $127,200 and $99,600 of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025, 2024 and 2023, SLR Healthcare had net income of $6,866, $5,589 and $5,458, respectively, on gross income of $23,546, $19,970 and $17,886, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. SLR Healthcare’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. Note 14. SLR Business Credit SUNS acquired 100% of the equity interests of North Mill Capital LLC (“NMC”) on October 20, 2017. NMC is a leading asset- backed lending commercial finance company that provides senior secured asset-backed financings to U.S. based small-to-medium-sized businesses primarily in the manufacturing, services and distribution industries. SUNS invested approximately $51,000 to effect the transaction. Subsequently, SUNS contributed 1% of its equity interest in NMC to ESP SSC Corporation. Immediately thereafter, SUNS and ESP SSC Corporation contributed their equity interests to NorthMill LLC (“North Mill”). On May 1, 2018, North Mill merged with and into NMC, with NMC being the surviving company. SUNS and ESP SSC Corporation then owned 99% and 1% of the equity interests of NMC, respectively. The management team of NMC continues to lead NMC. On June 28, 2019, North Mill Holdco LLC (“NM Holdco”), a newly formed entity, and ESP SSC Corporation acquired 100% of Summit Financial Resources, a Salt Lake City-based provider of asset-backed financing to small and medium-sized businesses. As part of this transaction, SUNS’s 99% interest in the equity of NMC was contributed to NM Holdco. This approximately $15,500 transaction was financed with borrowings on NMC’s credit facility. Effective February 25, 2021, NMC and its related companies are doing business as SLR Business Credit. On June 3, 2021, NMC acquired 100% of Fast Pay Partners LLC, a Los Angeles-based provider of asset-backed financing to digital media companies. The transaction purchase price of $66,671 was financed with equity from SUNS of $19,000 and borrowings on NMC’s credit facility of $47,671. SLRC acquired SLR Business Credit in connection with the Mergers on April 1, 2022. On September 27, 2024, NMC acquired an asset-based factoring portfolio and operations from Webster Bank, N.A.’s Commercial Services Division. The transaction purchase price of approximately $127,000 was funded with $30,000 of equity from the Company and the remaining $97,000 from borrowings on NMC’s credit facility. SLR Business Credit currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments. As of December 31, 2025, the portfolio totaled approximately $920,443 of commitments, of which $535,201 were funded, on total assets of $574,114. As of December 31, 2024, the portfolio totaled approximately $857,953 of commitments, of which $488,402 were funded, on total assets of $527,077. At December 31, 2025, the portfolio consisted of 179 issuers with an average balance of approximately $2,990 versus 188 issuers with an average balance of approximately $2,598 at December 31, 2024. NMC has a senior credit facility with a bank lending group for $367,000 which expires on November 13, 2028. Borrowings are secured by substantially all of NMC’s assets. NMC’s credit facility, which is non-recourse to us, had approximately $273,161 and $231,034 of borrowings outstanding at December 31, 2025 and December 31, 2024, respectively. For the years ended December 31, 2025, 2024 and 2023, SLR Business Credit had net income (loss) of $9,570, $10,450, and ($9,488), respectively, on gross income of $54,825, $45,891, and $38,143, respectively. Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions. As such, and subject to fluctuations in SLR Business Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Business Credit will be able to
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 135 maintain consistent dividend payments to us. SLR Business Credit’s consolidated financial statements for the fiscal years ended December 31, 2025 and December 31, 2024 are attached as an exhibit to this annual report on Form 10-K. Note 15. Commitments and Contingencies Off-Balance Sheet Arrangements The Company had unfunded debt and equity commitments to various revolving and delayed-draw term loans as well as to SLR Credit and SLR Healthcare. The total amount of these unfunded commitments as of December 31, 2025 and December 31, 2024 was $394,096 and $234,554, respectively, comprised of the following: December 31, 2025 December 31, 2024 SLR Credit Solutions* $ 44,263 $ 44,263 Ardelyx, Inc. 29,272 6,648 Wilbur-Ellis Holdings II, LLC 26,376 — Treace Medical Concepts, Inc. 24,332 — Western Veterinary Partners LLC 21,179 18,245 SLR Business Credit* 20,000 8,000 SLR Healthcare ABL* 18,700 10,000 Infillion Inc. 16,774 — Lyneer Staffing Solutions, LLC 16,000 — Arcutis Biotherapeutics, Inc. 12,658 12,658 OIS Management Services, LLC 11,416 — BDG Media, Inc. 10,946 11,751 Copper River Seafoods, Inc. 10,803 6,912 Southern Lifting and Hoisting, LLC 10,115 — DeepIntent, Inc. 9,777 7,254 SLR Equipment Finance* 9,500 3,000 Stella & Chewy's, LLC 9,248 — SPAR Marketing Force, Inc. 7,665 5,449 SunMed Receivables I, LLC 7,623 — Velocity One, LLC 7,250 — Quantcast Corporation 6,275 4,071 WMD Funding LLC 6,191 7,243 Southern Transport LLC 6,062 — The Townsend Company, LLC 5,755 7,923 Sightly Enterprises, Inc. 5,651 2,687 Pinnacle Fertility, Inc. 5,280 — Sherwood Management Co., Inc. 5,100 — Streamland Media Holdings LLC 3,659 — One Touch Direct, LLC 3,544 7,970 Plastic Management, LLC 3,128 10,806 iCIMS, Inc. 2,945 3,530 WALCO Funding, LLC 2,911 — 33Across Inc. 2,418 4,226 SLR Senior Lending Program LLC* 2,125 2,125 Bayside Opco, LLC 2,093 2,093 United Digestive MSO Parent, LLC 1,927 7,496 SunMed Group Holdings, LLC 1,621 1,621 EyeSouth Eye Care Holdco LLC 1,279 1,279 Tilley Distribution, Inc. 1,007 1,158 CC SAG Holdings Corp. (Spectrum Automotive) 548 548 TAUC Management, LLC 294 294 Shoes for Crews Global, LLC 284 284 All States Ag Parts, LLC 102 331 CVAUSA Management, LLC — 10,164 Pasadena Private Lending Inc. — 8,369 SPR Therapeutics, Inc. — 6,083 Foundation Consumer Brands, LLC — 3,009 Erie Construction Mid-west, LLC — 2,403 Kaseya, Inc. — 1,917 RxSense Holdings LLC — 1,250 Urology Management Holdings, Inc. — 863 High Street Buyer, Inc. — 631 Total Commitments $ 394,096 $ 234,554 * The Company controls the funding of these commitments and may cancel them at its discretion.
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the respective portfolio company’s achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the company. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. As of December 31, 2025 and December 31, 2024, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment. From time to time, the Company may become a party to certain legal proceedings incidental to the normal course of its business. As of December 31, 2025 and December 31, 2024, management was not aware of any material pending or threatened litigation that would require accounting recognition or financial statement disclosure. Note 16. Capital Share Transactions As of December 31, 2025 and December 31, 2024, 200,000,000 shares of $0.01 par value capital stock were authorized. On February 28, 2025, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) by and among the Company, the Investment Adviser and the Administrator, on the one hand, and Raymond James & Associates, Inc., Citizens JMP Securities, LLC and Jefferies LLC, as placement agents thereunder (collectively, the “Agents”), on the other hand. Under the Equity Distribution Agreement, the Company may, but has no obligation to, issue and sell up to $150,000 in aggregate amount of shares of its common stock from time to time through the Agents, or to them, as principal for their own account. For the fiscal year ended December 31, 2025, the Company sold no shares of common stock under the Equity Distribution Agreement. As of December 31, 2025, shares representing $150,000 of the Company’s common stock remain available for issuance and sale under the Equity Distribution Agreement. Transactions in capital stock were as follows for the periods presented: Shares Amount For the year ended December 31, 2025 For the year ended December 31, 2024 For the year ended December 31, 2025 For the year ended December 31, 2024 Share activity — — $ — $ — Note 17. Stock Repurchase Program On May 7, 2025, our Board authorized an extension of a program for the purpose of repurchasing up to $50,000 of our outstanding shares of common stock. Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market from time to time provided that we comply with our code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market volume and timing constraints. In addition, any repurchases will be conducted in accordance with the 1940 Act. Unless further amended or extended by our Board, we expect the repurchase program to be in place until the earlier of May 7, 2026 or until $50,000 of our outstanding shares of common stock have been repurchased. The timing and number of additional shares to be repurchased will depend on a number of factors, including market conditions. There are no assurances that we will engage in any repurchases beyond what is reported herein. There were no repurchases for the fiscal years ended December 31, 2025 and December 31, 2024. Note 18. SLR Senior Lending Program LLC On October 12, 2022, the Company entered into an amended and restated limited liability company agreement with Sunstone Senior Credit L.P. (the “Investor”) to create a joint venture vehicle, SLR Senior Lending Program LLC. SSLP is expected to invest primarily in senior secured cash flow loans. The Company and the Investor each have made initial equity commitments of $50,000, resulting in a total equity commitment of $100,000. Investment decisions and all material decisions in respect of SSLP must be approved by representatives of the Company and the Investor. On December 1, 2022, SSLP commenced operations. On December 12, 2022, SSLP, as servicer, and SLR Senior Lending Program SPV LLC (“SSLP SPV”), a newly formed wholly owned subsidiary of SSLP, as borrower, entered into a senior secured revolving credit facility with Goldman Sachs Bank USA acting as administrative agent. On October 8, 2025, this facility was
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 137 refinanced with Citizens Bank, N.A. into a $150,000 facility scheduled to mature in October 2030 and generally bearing interest at a rate of SOFR plus 2.15% (the “SSLP Facility”). SSLP and SSLP SPV, as applicable, have made certain customary representations and warranties and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities. The SSLP Facility also includes usual and customary events of default for credit facilities of this nature. As of December 31, 2025 and December 31, 2024, borrowings outstanding on the SSLP Facility totaled $94,500 and $96,600, respectively. As of December 31, 2025 and December 31, 2024, the Company and the Investor had contributed combined equity capital in the amount of $95,750 and $95,750, respectively. As of December 31, 2025 and December 31, 2024, the Company and the Investor’s combined remaining commitments to SSLP totaled $4,250 and $4,250, respectively. The Company, along with the Investor, controls the funding of SSLP, and SSLP may not call the unfunded commitments of the Company or the Investor without approval of both the Company and the Investor. As of December 31, 2025 and December 31, 2024, SSLP had total assets of $192,810 and $197,461, respectively. For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 25 and 32 different borrowers, respectively. For the years ended December 31, 2025 and December 31, 2024, SSLP invested $70,412 in 12 portfolio companies and $47,573 in 16 portfolio companies, respectively. For the same periods, investments prepaid totaled $68,198 and $57,524, respectively. SSLP Portfolio as of December 31, 2025 Description Industry SpreadAboveIndex Floor InterestRate MaturityDate ParAmount Cost FairValue Alkeme Intermediary Holdings, LLC (4) Insurance S+500 1.00% 8.67% 5/2027 $ 8,164 $ 8,071 $ 8,164 All States Ag Parts, LLC (4) Trading Companies & Distributors S+650 1.00% 10.43% 9/2026 2,076 2,076 2,076 BayMark Health Services, Inc. (4) Health Care Providers & Services S+500 1.00% 8.93% 6/2027 3,991 3,991 3,792 CC SAG Holdings Corp. (4) Diversified Consumer Services S+525 0.75% 8.97% 6/2028 9,922 9,922 9,922 Crewline Buyer, Inc. IT Services S+675 1.00% 10.59% 11/2030 5,084 4,981 5,084 CVAUSA Management, LLC (4) Health Care Providers & Services S+525 1.00% 8.97% 5/2029 9,924 9,727 9,924 Exactcare Parent, Inc. Health Care Providers & Services S+550 1.00% 9.39% 11/2029 3,171 3,106 3,171 Eyesouth Eye Care Holdco LLC (4) Health Care Providers & Services S+550 1.00% 9.47% 10/2029 9,923 9,883 9,923 Fertility (ITC) Investment Holdco, LLC (4) Health Care Providers & Services S+500 0.75% 9.12% 1/2029 5,835 5,727 5,835 Foundation Consumer Brands, LLC Personal Care Products S+500 1.00% 9.09% 2/2029 7,777 7,777 7,777 iCIMS, Inc.(4) Software S+575 0.75% 9.61% 8/2028 10,000 9,970 10,000 Maxor Acquisition, Inc.(4) Health Care Providers & Services S+600 1.00% 9.82% 3/2029 7,951 7,822 7,951 Medrina, LLC Health Care Providers & Services S+600 1.00% 9.69% 10/2029 2,758 2,706 2,758 NS and Associates LLC Consumer Staples Distribution & Retail S+525 1.00% 9.01% 8/2030 8,076 7,958 8,076 ONS MSO, LLC Health Care Providers & Services S+625 1.00% 10.09% 7/2028 5,789 5,689 5,789 Pinnacle Fertility, Inc.(4) Health Care Providers & Services S+500 0.75% 9.27% 3/2028 13,432 13,432 13,432 Plastic Management, LLC(4) Health Care Providers & Services S+500 1.00% 8.67% 8/2027 5,522 5,439 5,522 RQM+ Corp.(4) Life Sciences Tools & Services S+675 1.00% 10.68% 8/2029 6,152 6,152 5,537 RxSense Holdings LLC Diversified Consumer Services S+500 1.00% 8.84% 3/2026 8,782 8,782 8,782 SunMed Group Holdings, LLC(4) Health Care Equipment & Supplies S+550 0.75% 9.44% 6/2028 8,765 8,765 8,765 The Townsend Company, LLC(4) Commercial Services & Supplies S+500 1.00% 8.72% 8/2030 12,020 11,723 12,020 Tilley Distribution, Inc.(4) Trading Companies & Distributors S+600 1.00% 9.82% 12/2026 5,548 5,548 5,437 United Digestive MSO Parent, LLC(4) Health Care Providers & Services S+575 1.00% 9.42% 3/2029 5,007 4,907 5,007 UVP Management, LLC Health Care Providers & Services S+550 1.00% 9.32% 9/2027 3,288 3,245 3,288 Western Veterinary Partners LLC(4) Diversified Consumer Services S+525 1.00% 8.92% 10/2027 13,337 13,282 13,337 $ 180,681 $ 181,369 (1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the SOFR. These instruments are typically subject to a SOFR floor. (2) Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, we have provided the current interest rate in effect as of December 31, 2025. (3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. (4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities. (1) (2) (3)
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) SSLP Portfolio as of December 31, 2024 Description Industry Spread Above Index Floor Interest Rate Maturity Date Par Amount Cost Fair Value Accession Risk Management Group, Inc. Insurance S+475 0.75% 9.08% 11/2029 $ 6,888 $ 6,865 $ 6,888 Aegis Toxicology Sciences Corporation (4) Health Care Providers & Services S+550 1.00% 10.28% 5/1/2025 2,895 2,895 2,895 Alkeme Intermediary Holdings, LLC (4) Insurance S+575 1.00% 10.08% 10/2026 5,984 5,861 5,984 All States Ag Parts, LLC (4) Trading Companies & Distributors S+600 1.00% 10.59% 9/2026 2,111 2,111 2,111 BayMark Health Services, Inc. (4) Health Care Providers & Services S+500 1.00% 9.59% 6/2027 3,992 3,992 3,992 CC SAG Holdings Corp. (4) Diversified Consumer Services S+525 0.75% 9.58% 6/2028 8,877 8,877 8,877 Crewline Buyer, Inc. IT Services S+675 1.00% 11.11% 11/2030 5,084 4,966 5,084 CVAUSA Management, LLC (4) Health Care Providers & Services S+650 1.00% 10.84% 5/2029 5,357 5,220 5,357 Erie Construction Mid-west, LLC Building Products S+475 1.00% 10.09% 7/2027 8,000 8,000 8,000 Exactcare Parent, Inc. Health Care Providers & Services S+550 1.00% 10.03% 11/2029 3,203 3,125 3,203 Eyesouth Eye Care Holdco LLC (4) Health Care Providers & Services S+550 1.00% 10.15% 10/2029 2,646 2,596 2,646 Fertility (ITC) Investment Holdco, LLC (4) Health Care Providers & Services S+650 1.00% 11.74% 1/2029 5,895 5,757 5,895 Foundation Consumer Brands, LLC (4) Personal Products S+625 1.00% 10.89% 2/2027 8,102 8,102 8,102 High Street Buyer, Inc. Insurance S+525 0.75% 9.58% 4/2028 7,527 7,527 7,527 iCIMS, Inc.(4) Software S+575 0.75% 10.38% 8/2028 3,195 3,158 3,195 Kaseya, Inc.(4) Software S+550 0.75% 10.75% 6/2029 9,127 9,127 9,127 Kid Distro Holdings, LLC Software S+475 1.00% 9.49% 10/2029 8,848 8,848 8,848 Legacy Service Partners, LLC Diversified Consumer Services S+525 1.00% 9.73% 1/2029 2,796 2,733 2,796 Maxor Acquisition, Inc.(4) Health Care Providers & Services S+600 1.00% 10.46% 3/2029 6,058 5,906 6,058 Medrina, LLC Health Care Providers & Services S+600 1.00% 10.44% 10/2029 2,386 2,333 2,386 ONS MSO, LLC(4) Health Care Providers & Services S+625 1.00% 10.84% 7/2026 5,833 5,738 5,833 Plastic Management, LLC(4) Health Care Providers & Services S+500 1.00% 9.43% 8/2027 5,579 5,453 5,579 Retina Midco, Inc.(4) Health Care Providers & Services S+575 1.00% 10.35% 1/2026 9,918 9,793 10,116 RQM+ Corp.(4) Life Sciences Tools & Services S+675 1.00% 11.34% 8/2029 5,895 5,895 5,659 RxSense Holdings LLC(4) Diversified Consumer Services S+500 1.00% 9.69% 3/2026 8,875 8,875 8,875 SunMed Group Holdings, LLC(4) Health Care Equipment & Supplies S+550 0.75% 10.19% 6/2028 8,856 8,856 8,856 The Townsend Company, LLC(4) Commercial Services & Supplies S+500 1.00% 9.36% 8/2030 4,117 4,026 4,078 Tilley Distribution, Inc.(4) Trading Companies & Distributors S+600 1.00% 10.48% 12/2026 5,607 5,607 5,495 United Digestive MSO Parent, LLC(4) Health Care Providers & Services S+575 1.00% 10.08% 3/2029 3,433 3,346 3,433 Urology Management Holdings, Inc.(4) Health Care Providers & Services S+550 1.00% 9.83% 6/2027 4,112 4,035 4,112 UVP Management, LLC(4) Health Care Providers & Services S+625 1.00% 10.73% 9/2025 4,858 4,803 4,858 WCI-BXC Purchaser, LLC Distributors S+625 1.00% 10.78% 11/2030 2,875 2,810 2,875 $ 177,236 $ 178,740 (1) Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR or SOFR. These instruments are typically subject to a LIBOR or SOFR floor. (2) Floating rate debt investments typically bear interest at a rate determined by reference to either the LIBOR (“L”) or SOFR (“S”), and which typically reset monthly, quarterly or semi-annually. For each debt investment, we have provided the current interest rate in effect as of December 31, 2024. (3) Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board’s valuation process described elsewhere herein. (4) The Company also holds this security on its Consolidated Statements of Assets and Liabilities. Below is certain summarized financial information for SSLP as of December 31, 2025 and December 31, 2024 and for the years ended December 31, 2025 and December 31, 2024: December 31, 2025 December 31, 2024 Selected Balance Sheet Information for SSLP: Investments at fair value (cost $180,681 and $177,236, respectively) $ 181,369 $ 178,740 Cash and other assets 11,441 18,721 Total assets $ 192,810 $ 197,461 Debt outstanding ($94,500 and $96,600 face amounts, respectively, reported net of unamortized debt issuance costs of $1,843 and $1,572, respectively) $ 92,657 $ 95,028 Distributions payable 1,885 3,381 Interest payable and other credit facility related expenses 1,488 472 Accrued expenses and other payables 268 398 Total liabilities $ 96,298 $ 99,279 Members’ equity $ 96,512 $ 98,182 Total liabilities and members’ equity $ 192,810 $ 197,461 (1) (2) (3)
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Table of Contents SLR INVESTMENT CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) December 31, 2025 (in thousands, except share and per share amounts) 139 Year Ended December 31, 2025 Year Ended December 31, 2024 Selected Income Statement Information for SSLP: Interest income $ 18,821 $ 24,330 Service fees* $ 444 $ 512 Interest and other credit facility expenses 9,679 10,916 Other general and administrative expenses 239 157 Total expenses $ 10,362 $ 11,585 Net investment income $ 8,459 $ 12,745 Realized gain on investments 543 320 Net change in unrealized gain on investments (816) 308 Net realized and unrealized gain on investments (273) 628 Net income $ 8,186 $ 13,373 * Service fees are included within the Company’s Consolidated Statements of Operations as other income. Note 19. Segment Reporting The Company operates as a single reporting segment and derives its revenue from providing comprehensive financing solutions primarily to middle market borrowers in the United States through direct cash flow lending or specialty finance instruments. The Company has identified its co-Chief Executive Officer as the Chief Operating Decision Makers (“CODMs”). The CODMs review all significant segment expenses on the Consolidated Statements of Operations and use net investment income to evaluate the performance of the Company and to determine distributions. Additionally, the CODMs use net asset value per share (see Note 4) to determine capital adequacy of the Company. All metrics are used to ultimately allocate resources to the Company as needed. The accounting policies used to measure the revenue and expenses of the segment are the same as those described in Note 2. Note 20. Subsequent Events The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued. On February 24, 2026, the Board declared a quarterly distribution of $0.41 per share payable on March 27, 2026 to holders of record as of March 13, 2026.
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Table of Contents 140 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures (a) Evaluation of Disclosure Controls and Procedures As of December 31, 2025 (the end of the period covered by this report), we, including our Co-Chief Executive Officers and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including the Co-Chief Executive Officers and Chief Financial Officer, concluded that, as of December 31, 2025, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Co-Chief Executive Officers and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures. (b) Management’s Report on Internal Control Over Financial Reporting Management’s Report on Internal Control Over Financial Reporting, which appears in Item 8 of this annual report on Form 10-K, is incorporated by reference herein. (c) Attestation Report of the Independent Registered Public Accounting Firm Our independent registered public accounting firm, KPMG LLP, has issued an attestation report on the Company’s internal control over financial reporting, which is set forth above under the heading “Report of Independent Registered Public Accounting Firm” in Item 8. (d) Changes in Internal Controls Over Financial Reporting Management has not identified any change in the Company’s internal control over financial reporting that occurred during the fourth fiscal quarter of 2025 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. Item 9B. Other Information Rule 10b5-1 Trading Plans During the fiscal quarter ended December 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the 1934 Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the 1934 Act or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not Applicable.
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Table of Contents 141 PART III Item 10. Directors, Executive Officers and Corporate Governance Information about Directors Certain information with respect to each of the current directors is set forth below, including their names, ages, a brief description of their recent business experience, including present occupations and employment, certain directorships that each person holds, the year in which each person became a director of the Company, and a discussion of their particular experience, qualifications, attributes or skills that lead us to conclude that such individual should serve as a director of the Company, in light of the Company’s business and structure. There were no legal proceedings of the type described in Item 401(f) of Regulation S-K in the past 10 years against any of the directors or officers of the Company and none are currently pending. There is no arrangement or understanding between any of the Company’s directors or officers pursuant to which they were selected as directors or officers and the Company or any other person or entity. Mr. Gross is an “interested person” of the Company as defined in the 1940 Act due to his position as Co-Chief Executive Officer and President of the Company and a managing member of SLR Capital Partners, LLC, the Company’s investment adviser. Mr. Spohler is an “interested person” of the Company as defined in the 1940 Act due to his position as Co-Chief Executive Officer and Chief Operating Officer of the Company and a managing member of SLR Capital Partners, the Company’s investment adviser. Each of Ms. Roberts, Mr. Wachter, Mr. Hochberg and Mr. Potter is not an “interested person” of the Company as defined in the 1940 Act. Name, Address andAge(1) Position(s)Held withCompany Terms of Officeand Length ofTime Served Principal Occupation(s) DuringPast 5 Years Number ofPortfolios in FundComplex Overseenby Director(2) Other DirectorshipsHeld by Director orNominee for DirectorDuring Past 5 YearsThat Are Not Part ofthe Fund Complex Interested Director Michael S. Gross, 64 Chairman of the Board of Directors, Co- Chief Executive Officer and President. Class III Director since 2007; Term expires 2027. Co-Chief Executive Officer of SLR Investment Corp. and SCP Private Credit Income BDC LLC since June 2019, of SLR HC BDC LLC since September 2020 and of SLR Private Credit BDC II LLC since April 2022, and President of SLR Investment Corp. since 2007, of SCP Private Credit Income BDC LLC since 2018, of SLR HC BDC LLC since 2020 and of SLR Private Credit BDC II LLC since 2022; Sole Chief Executive Officer of SLR Investment Corp. (February 2007-June 2019), and of SCP Private Credit Income BDC LLC (June 2018- June 2019). Previously, Co-Chief Executive Officer and President of SLR Senior Investment Corp. 4 Chairman of the board of directors of Global Ship Lease Inc. Previously Chairman of the board of directors of SLR Senior Investment Corp., where he served from 2010 to April 2022.
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Table of Contents 142 Mr. Gross’ intimate knowledge of the business and operations of SLR Capital Partners, extensive familiarity with the financial industry and the investment management process in particular, and experience as a director of other public and private companies not only gives the board of directors valuable insight but also positions him well to continue to serve as the Chairman of our board of directors. Name, Addressand Age(1) Position(s) Heldwith Company Terms of Officeand Length ofTime Served Principal Occupation(s) DuringPast 5 Years Number ofPortfolios in FundComplex Overseenby Director(2) Other DirectorshipsHeld by Director orNominee forDirector DuringPast 5 Years ThatAre Not Part of theFund Complex Interested Director Bruce Spohler, 65 Co-Chief Executive Officer, Chief Operating Officer and Director Class II Director since 2009; Term expires 2026. Co-Chief Executive Officer of SLR Investment Corp. and SCP Private Credit Income BDC LLC since June 2019, of SLR HC BDC LLC since September 2020 and of SLR Private Credit BDC II LLC since April 2022; Chief Operating Officer of SLR Investment Corp. since February 2007, of SCP Private Credit Income BDC LLC since June 2018, of SLR HC BDC LLC since September 2020 and of SLR Private Credit BDC II LLC since April 2022. 4 Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2010 to April 2022. Mr. Spohler’s depth of experience in managerial positions in investment management, leveraged finance and financial services, as well as his intimate knowledge of the Company’s business and operations, gives the board of directors valuable industry-specific knowledge and experience on these and other matters. Name, Addressand Age(1) Position(s) Heldwith Company Terms of Officeand Length ofTime Served Principal Occupation(s) DuringPast 5 Years Number ofPortfolios in FundComplex Overseenby Director(2) Other DirectorshipsHeld by Director orNominee for DirectorDuring Past 5 YearsThat Are Not Part of theFund Complex Independent Director Steven Hochberg, 64Director Class II Director since 2007; Term expires 2026. Operating Partner of Deerfield Management, a healthcare investment firm, since 2022. Partner of Deerfield Management from 2013 to 2021. Co-Founder and Manager of Ascent Biomedical Ventures, a venture capital firm focused on early-stage investment and development of biomedical companies, since 2004. Co- Founder and Co-General Partner of Triatomic Capital, a technology focused venture capital firm, since 2022. 4 Since 2011, Mr. Hochberg had been the Chairman of the Board of Continuum Health Partners until its merger with Mount Sinai in 2013, where he is a Vice Chairman of Mount Sinai Health System, a non-profit healthcare integrated delivery system in New York City. Director of a number of private healthcare companies and the Cardiovascular Research Foundation, an organization focused on advancing new technologies and education in the field of cardiovascular medicine. Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2011 to April 2022.
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Table of Contents 143 Mr. Hochberg’s varied experience in investing in medical technology companies provides the board of directors with particular knowledge of this field, and his role as chairman of other companies’ boards of directors brings the perspective of a knowledgeable corporate leader. Name, Addressand Age(1) Position(s) Heldwith Company Terms of Officeand Length ofTime Served Principal Occupation(s)During Past 5 Years Number ofPortfolios in FundComplex Overseenby Director(2) Other DirectorshipsHeld by Director orNominee for DirectorDuring Past 5 YearsThat Are Not Part ofthe Fund Complex Independent Director Leonard A. Potter, 64Director Class III Director since 2009; Term expires 2027. President and Chief Investment Officer of Wildcat Capital Management, LLC since 2011; Senior Managing Director of Vida Ventures I and II, each a biotech venture fund, since 2017; Managing Director of Soros Private Equity at Soros Fund Management LLC from 2002 to 2009. 4 Director of Hilton Grand Vacations Inc. since 2017, of SuRo Capital Corp. since 2011, and of several private companies. Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2011 to April 2022. Mr. Potter’s experience practicing as a corporate lawyer provides valuable insight to the board of directors on regulatory and risk management issues. In addition, his tenure in private equity and other investments and service as a director of both public and private companies provide industry-specific knowledge and experience to the board of directors. Name, Addressand Age(1) Position(s)Held withCompany Terms ofOffice andLength ofTime Served PrincipalOccupation(s) DuringPast 5 Years Number ofPortfolios in FundComplex Overseenby Director(2) Other DirectorshipsHeld by Director orNominee forDirector DuringPast 5 Years ThatAre Not Part of theFund Complex Independent Director David S. Wachter, 62Director Class I Director since 2007; Term expires 2028. CEO and founder of W Capital Partners, a private equity fund manager specializing in GP solutions secondary investing since 2001. W Capital, since 2024, is a division of AXA IM, part of BNP Paribas. Prior to W Capital, Mr. Wachter was an investment banker for 15 years. 4 Previously a member of the board of directors of SLR Senior Investment Corp., where he served from 2011 to April 2022. Mr. Wachter’s extensive knowledge of private equity and investment banking provides the board of directors with the valuable insight of an experienced financial manager.
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Table of Contents 144 Name, Address and Age(1) Position(s) Held with Company Terms of Office and Length of Time Served Principal Occupation(s) During Past 5 Years Number of Portfolios in Fund Complex Overseen by Director Other Directorships Held by Director or Nominee for Director During Past 5 Years That Are Not Part of the Fund Complex Independent Director Andrea C. Roberts, 69 Director Class I Director since 2023; Term expires 2028. Co-Founder and Managing Director of Genesis Capital Corporation, an investment banking firm, since 1994; President and sole owner of Orbis Associates, Inc., a consulting firm providing consulting services to Genesis Capital Corporation on an exclusive basis, since 1994. 1 Director of Trinity Episcopal School from 2019 to 2022. Ms. Roberts’ extensive knowledge of investment banking and asset-based financing provides the board of directors with the valuable insight of an experienced financial manager. (1) The business address of our directors is c/o SLR Investment Corp., 500 Park Avenue, New York, New York 10022. (2) The Company is part of a “Fund Complex,” as that term is defined in Schedule 14A and Regulation 14A under the 1934 Act. Messrs. Gross, Spohler, Hochberg, Potter and Wachter each also have served as directors of SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since 2018, 2020 and 2022, respectively, which are investment companies that have each elected to be regulated BDCs and are part of the Fund Complex. Mr. Gross has served as Chairman of SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since 2018, 2020 and 2022, respectively. Mr. Potter also serves as a director of SuRo Capital Corp., which is a closed-end management investment company that has elected to be regulated as a BDC. Information about Executive Officers Who Are Not Directors The following information, as of December 31, 2025, pertains to our executive officers who are not directors of the Company. Name, Address, and Age Position(s) Held withCompany Terms of Office and Length of Time Served Number ofPortfolios inFundComplexOverseen byOfficer Principal Occupation(s) During Past 5 YearsShiraz Y. Kajee, 46 Chief Financial Officer and Treasurer Since April 2023 (indefinite terms) 4 Chief Financial Officer and Treasurer of the Company, SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since April 2023 and Secretary of such entities from April 2023 to November 2023. From December 2015 through March 2023, Mr. Kajee served as a Managing Director at New Mountain Capital, L.L.C., a private equity firm, which included serving as Chief Financial Officer and Treasurer of New Mountain Finance Corporation since 2015, of NMF SLF I, Inc. since 2019, of New Mountain Guardian III BDC, L.L.C. since 2019 and of New Mountain Guardian IV BDC, L.L.C. since 2022. (1)
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Table of Contents 145 Guy Talarico, 70 Chief Compliance Officer and Secretary Chief Compliance Officer since July 2008; Secretary since November 2023 (indefinite terms) 4 Chief Compliance Officer of the Company since July 2008, of SCP Private Credit Income BDC LLC since June 2018, of SLR HC BDC LLC since September 2020, and of SLR Private Credit BDC II LLC since April 2022. Secretary of the Company, SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC since November 2023; Mr. Talarico currently serves as Chief Compliance Officer, since 2008, and General Counsel, since May 2023, of SLR Capital Partners, LLC. In addition, Mr. Talarico previously served as the Chief Compliance Officer of SLR Senior Investment Corp. from December 2010 until April 2022. Mr. Talarico previously served as managing director of ACA Group, LLC (successor to Foreside Consulting Services LLC, and ultimate successor to Alaric Compliance Services, LLC, which he founded in December 2005) until May 2023. (1) The business address of the executive officers is c/o SLR Investment Corp., 500 Park Avenue, New York, New York 10022. Our common stock is listed on the NASDAQ Global Select Market under the symbol “SLRC.” Audit Committee The Audit Committee operates pursuant to a charter approved by our board of directors, a copy of which is available on our website at http://www.slrinvestmentcorp.com. The charter sets forth the responsibilities of the Audit Committee. The Audit Committee’s responsibilities include selecting the independent registered public accounting firm for the Company, reviewing with such independent registered public accounting firm the planning, scope and results of their audit of the Company’s financial statements, pre-approving the fees for services performed, reviewing with the independent registered public accounting firm the adequacy of internal control systems, reviewing the Company’s annual financial statements and periodic filings and receiving the Company’s audit reports and financial statements. The Audit Committee also establishes guidelines and makes recommendations to our board of directors regarding the valuation of our investments. The Audit Committee is responsible for aiding our board of directors in determining the fair value of debt and equity securities that are not publicly traded or for which current market values are not readily available. The board of directors and Audit Committee utilize the services of nationally recognized third-party valuation firms to help determine the fair value of these securities. The Audit Committee is currently composed of Messrs. Hochberg, Wachter and Potter and Ms. Roberts, all of whom are considered independent under the rules of the NASDAQ Stock Market and are not “interested persons” of the Company as that term is defined in Section 2(a)(19) of the 1940 Act. Mr. Hochberg serves as Chairman of the Audit Committee. Our board of directors has determined that Mr. Hochberg is an “audit committee financial expert” as that term is defined under Item 407 of Regulation S-K, as promulgated under the 1934 Act. Mr. Hochberg meets the current independence and experience requirements of Rule 10A-3 of the 1934 Act. Communication with the Board of Directors Stockholders with questions about the Company are encouraged to contact the Company’s investor relations department. However, if stockholders believe that their questions have not been addressed, they may communicate with the Company’s board of directors by sending their communications to SLR Investment Corp., c/o Guy Talarico, Secretary, 500 Park Avenue, New York, New York 10022. All stockholder communications received in this manner will be delivered to one or more members of the board of directors. Code of Ethics The Company has adopted a code of ethics that applies to, among others, its senior officers, including its Co-Chief Executive Officers and its Chief Financial Officer, as well as every officer, director and employee of the Company. The Company’s code of ethics can be accessed via its website at http://www.slrinvestmentcorp.com. The Company intends to disclose amendments to or waivers from a required provision of the code of ethics on Form 8-K. Insider Trading Policy The Company has adopted a joint code of ethics and insider trading policy in conjunction with the Investment Adviser and each of SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC (collectively, the “SLR BDCs”) that the Company believes is reasonably designed to promote compliance with applicable insider trading laws, rules and regulations. The joint code of ethics and insider trading policy governs the purchase, sale and/or other dispositions of the securities of the Investment Adviser, the Company and the SLR BDCs and applies to (i) any partner, member, officer or director of the Investment
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Table of Contents 146 Adviser, the Company and the SLR BDCs, or other person occupying a similar status or performing similar function; (ii) any employee of the Investment Adviser, the Company and the SLR BDCs; (iii) any U.S. consultant who has been contracted by the Investment Adviser, the Company and the SLR BDCs for more than ninety (90) days; and (iv) any other person who provides advice on behalf of the Investment Adviser, the Company and the SLR BDCs and is subject to the respective entity’s supervision and control. Nomination of Directors There have been no material changes to the procedures by which stockholders may recommend nominees to our Board since the filing of our Proxy Statement for our 2025 Annual Meeting of Stockholders. Delinquent Section 16(a) Reports Pursuant to Section 16(a) of the 1934 Act, the Company’s directors and other executive officers, and any persons holding more than 10% of its common stock, are required to report their beneficial ownership and any changes therein to the SEC and the Company. Specific due dates for those reports have been established, and the Company is required to report any failure to file such reports by those due dates. Based on the Company’s review of Forms 3, 4 and 5 filed by such persons and information provided by the Company’s directors and other executive officers, the Company believes that during the fiscal year ended December 31, 2025, all Section 16(a) filing requirements applicable to such persons were met in a timely manner. Item 11. Executive Compensation Compensation of Executive Officers None of our officers receives direct compensation from the Company. As a result, we do not engage any compensation consultants. Mr. Gross, our Co-Chief Executive Officer and President, and Mr. Spohler, our Co-Chief Executive Officer and Chief Operating Officer, through their ownership interest in SLR Capital Partners, our investment adviser, are entitled to a portion of any profits earned by SLR Capital Partners, which includes any fees payable by us to SLR Capital Partners under the terms of the Advisory Agreement, less expenses incurred by SLR Capital Partners in performing its services under the Advisory Agreement. Messrs. Gross and Spohler do not receive any additional compensation from SLR Capital Partners in connection with the management of our portfolio. Mr. Kajee, our Chief Financial Officer and Treasurer, and Mr. Talarico, our Chief Compliance Officer and Secretary, are paid by the Investment Adviser, subject to reimbursement by us of an allocable portion of such compensation for services rendered by such persons to the Company. Compensation of Directors The following table sets forth the compensation of the Company’s directors, for the year ended December 31, 2025. Name Fees Earnedor Paid inCash StockAwards All OtherCompensation Total Compensation from the Company Total Compensation from the Fund Complex Interested Directors Michael S. Gross — — — — — Bruce Spohler — — — — — Independent Directors Steven Hochberg $ 127,000 — — $ 127,000 $ 202,000 David S. Wachter $ 118,500 — — $ 118,500 $ 193,500 Leonard A. Potter $ 122,000 — — $ 122,000 $ 197,000 Andrea C. Roberts $ 119,500 — — $ 119,500 $ 119,500 (1) For a discussion of the independent directors’ compensation, see below. (2) We do not maintain a stock or option plan, non-equity incentive plan or pension plan for our directors or officers. As a result, the Company has not historically, and does not expect to, directly grant equity awards to its directors or officers. Our independent directors have the option to receive all or a portion of the directors’ fees to which they would otherwise be entitled in the form of shares of our common stock issued at a price per share equal to the greater of our then current net asset value per (1) (2)
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Table of Contents 147 share or the market price at the time of payment. No shares were issued to any of our independent directors in lieu of cash during 2025. Our independent directors’ annual fee is $100,000. The independent directors also receive $2,500 ($1,500 if participating telephonically) plus reimbursement of reasonable out-of-pocket expenses incurred in connection with attending each board meeting and $1,000 plus reimbursement of reasonable out-of-pocket expenses incurred in connection with each committee meeting attended. In addition, the Chairman of the Audit Committee receives an annual fee of $7,500, the Chairman of the Nominating and Corporate Governance Committee receives an annual fee of $2,500 and the Chairman of the Compensation Committee receives an annual fee of $2,500. Further, we purchase directors’ and officers’ liability insurance on behalf of our directors and officers. No compensation was paid to directors who are interested persons of the Company as defined in the 1940 Act. Compensation Committee The Compensation Committee operates pursuant to a charter approved by our board of directors, a copy of which is available on our website at http://www.slrinvestmentcorp.com. The charter sets forth the responsibilities of the Compensation Committee. The Compensation Committee is responsible for reviewing and recommending for approval to our board of directors the Advisory Agreement and the Administration Agreement. In addition, although we do not directly compensate our executive officers currently, to the extent that we do so in the future, the Compensation Committee would also be responsible for reviewing and evaluating their compensation and making recommendations to the board of directors regarding their compensation. Lastly, the Compensation Committee would produce a report on our executive compensation practices and policies for inclusion in our proxy statement if required by applicable proxy rules and regulations and, if applicable, make recommendations to the board of directors with matters related to compensation generally. The Compensation Committee has the authority to engage compensation consultants and to delegate their duties and responsibilities to a member or to a subcommittee of the Compensation Committee. The members of the Compensation Committee are Messrs. Hochberg, Wachter and Potter and Ms. Roberts, all of whom are considered independent under the rules of the NASDAQ Stock Market and are not “interested persons” of the Company as that term is defined in Section 2(a)(19) of the 1940 Act. Mr. Potter serves as Chairman of the Compensation Committee. Compensation Committee Interlocks and Insider Participation During fiscal year 2025, none of the Company’s executive officers served on the board of directors (or a compensation committee thereof or other board committee performing equivalent functions) of any entities that had one or more executive officers serve on the Compensation Committee of the Company or on the Board of Directors of the Company. No member of the Compensation Committee had any relationship requiring disclosure under any paragraph of Item 404 of Regulation S-K. Compensation Committee Report Currently, none of our executive officers are compensated by the Company, and as such the Company is not required to produce a report on executive officer compensation for inclusion in our annual report on Form 10-K. Clawback Policy While the Company, as an externally-managed business development company under the 1940 Act, currently neither pays nor has any plans to pay or otherwise award incentive-based compensation to its executive officers, the Board adopted our Clawback Policy, effective November 6, 2023 (the “Clawback Policy”), in accordance with Rule 10D-1 of the 1934 Act and Nasdaq listing standards. The Clawback Policy applies to current and former covered executive officers of the Company and is administered by the Compensation Committee. In the event the Company is required to prepare an accounting restatement to correct material noncompliance with any financial reporting requirement under U.S. federal securities laws, including restatements that correct an error in previously issued financial statements that is material to the previously issued financial statements or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period, it is the Company’s policy to recover erroneously awarded incentive-based compensation, if any, received by its executive officers. The recovery of such compensation applies regardless of whether an executive officer engaged in misconduct or otherwise caused or contributed to the requirement for a restatement. During the fiscal year ended December 31, 2025 and continuing through the date of this annual report on Form 10-K, we were not required to prepare an accounting restatement that required recovery of erroneously awarded compensation under the Clawback Policy nor was there an outstanding balance as of December 31, 2025 of erroneously awarded compensation to be recovered under the Clawback Policy from a prior restatement.
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Table of Contents Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The following table sets forth, as of February 20, 2026, the beneficial ownership of each current director, the nominees for directors, the Company’s executive officers, each person known to us to beneficially own 5% or more of the outstanding shares of our common stock, and the executive officers and directors as a group. Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. Ownership information for those persons who beneficially own 5% or more of our shares of common stock is based upon reports filed by such persons with the SEC and other information obtained from such persons, if available. Unless otherwise indicated, the Company believes that each beneficial owner set forth in the table has voting and investment power and has the same address as the Company. Our address is 500 Park Avenue, New York, New York 10022. Name and Address of Beneficial Owner Number ofSharesOwnedBeneficially(1) Percentageof Class(2) Interested Directors Michael S. Gross(3)(4) 4,112,671 7.5% Bruce Spohler(3)(5) 3,799,031 7.0% Independent Directors Steven Hochberg 2,742 * Leonard A. Potter 14,872 * David S. Wachter 53,494 * Andrea C. Roberts(6) 32,190 * Executive Officers Shiraz Y. Kajee 7,500 * Guy Talarico 31,899 * All executive officers and directors as a group (8 persons) 4,773,728 8.8% Thornburg Investment Management Inc.(7) 4,372,550 8.0% * Represents less than one percent. (1) Beneficial ownership has been determined in accordance with Rule 13d-3 under the 1934 Act. Assumes no other purchases or sales of our common stock since the most recently available SEC filings. This assumption has been made under the rules and regulations of the SEC and does not reflect any knowledge that we have with respect to the present intent of the beneficial owners of our common stock listed in this table. (2) Based on a total of 54,554,634 shares of the Company’s common stock issued and outstanding as of February 20, 2026. (3) Includes 1,285,013 shares held by Solar Capital Investors, LLC (“Solar Capital I”) and 715,000 shares held by Solar Capital Investors II, LLC (“Solar Capital II”), a portion of each of which may be deemed to be indirectly beneficially owned by Michael S. Gross, a grantor retained annuity trust (the “GRAT”) set up by and for Mr. Gross and for which he serves as trustee, and Bruce Spohler. Also includes 355,107 shares held by Solar Senior Capital Investors, LLC (“Solar Senior Investors”) and 77 shares of the Issuer held by SLR Capital Management, and a portion held by each entity may be deemed to be indirectly beneficially owned by Mr. Gross and Mr. Spohler. Also includes 925,474 shares held by Solar Capital Partners Employee Stock Plan LLC, which is controlled by SLR Capital Partners, LLC. Mr. Gross and Mr. Spohler may be deemed to indirectly beneficially own a portion of the shares held by Solar Capital Partners Employee Stock Plan LLC by virtue of their collective ownership interest in SLR Capital Partners, LLC. Each of Mr. Gross and Mr. Spohler disclaim beneficial ownership of any shares of our common stock directly held by Solar Capital Partners Employee Stock Plan LLC, Solar Capital I, Solar Capital II, Solar Senior Investors and SLR Capital Management, LLC, except to the extent of their respective pecuniary interest therein. (4) Includes 152,166 shares directly held by Michael S. Gross’ profit sharing plan (the “Profit Sharing Plan”). Mr. Gross may be deemed to directly beneficially own these shares as the sole participant in the Profit Sharing Plan. Also includes 117,617 shares held by certain trusts for the benefit of family members for which Mr. Gross serves as trustee (the “Family Trusts”). Mr. Gross may be deemed to directly beneficially own these shares by virtue of his control with respect to the Family Trusts, and disclaims beneficial ownership of the securities held by the Family Trusts except to the extent of his pecuniary interest therein. Also includes 334,428 shares held by the GRAT. (5) Includes 199,466 shares held in a trust of which Bruce Spohler became co-trustee in which he and certain members of his immediate family are beneficiaries (the “Spohler Trust”) and 243,021 shares held by a limited liability company in which he
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Table of Contents 149 holds a pro rata interest (the “Spohler LLC”). Mr. Spohler disclaims beneficial ownership of the shares in the Spohler Trust and the Spohler LLC, except to the extent of his pecuniary interest therein. (6) Include 25,000 shares directly held by Andrea C. Roberts and 7,190 shares held by The Calvin W Roberts MD PC Pension Plan (the “CWR Pension Plan”), in which Ms. Roberts is a participant. Ms. Roberts disclaims beneficial ownership of any shares directly held by the CWR Pension Plan except to the extent of her pecuniary interest therein. (7) Based upon information contained in the Schedule 13G filed February 19, 2026 by Thornburg Investment Management, Inc. Such securities are held by certain investment vehicles controlled and/or managed by Thornburg Investment Management, Inc. or its affiliates. The address for Thornburg Investment Management, Inc. is 2300 North Ridgetop Road, Santa Fe, New Mexico 87506.
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Table of Contents Set forth below is the dollar range of equity securities beneficially owned by each of our directors as of February 20, 2026. The Company is part of a “Fund Complex,” as that term is defined in Schedule 14A and Regulation 14A under the 1934 Act. For purposes of this Annual Report on Form 10-K, the term Fund Complex includes the Company, SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC. Name of Director Dollar Rangeof EquitySecuritiesBeneficiallyOwned in theCompany(1)(2) Dollar Rangeof EquitySecuritiesBeneficiallyOwned in the FundComplex(1)(2)(3) Interested Directors Michael S. Gross Over $ 100,000 Over $ 100,000 Bruce Spohler Over $ 100,000 Over $ 100,000 Independent Directors Steven Hochberg $10,001- $50,000 $10,001- $50,000 Leonard A. Potter Over $ 100,000 Over $ 100,000 David S. Wachter Over $ 100,000 Over $ 100,000 Andrea C. Roberts Over $ 100,000 Over $ 100,000 (1) The dollar ranges are: None, $1-$10,000, $10,001-$50,000, $50,001-$100,000, or Over $100,000. (2) The dollar range of equity securities beneficially owned in us is based on the closing price for our common stock of $14.86 on February 20, 2026 on the NASDAQ Global Select Market. Beneficial ownership has been determined in accordance with Rule 16a- 1(a)(2) of the 1934 Act. (3) The dollar range of equity securities in the Fund Complex beneficially owned by directors of the Company, if applicable, is the total dollar range of equity securities in the Company beneficially owned by the directors, as no director has beneficial ownership of SCP Private Credit Income BDC LLC, SLR HC BDC LLC or SLR Private Credit BDC II LLC. Item 13. Certain Relationships and Related Transactions, and Director Independence We have entered into the Advisory Agreement with SLR Capital Partners. Mr. Gross, our Chairman, Co-Chief Executive Officer and President, and Mr. Spohler, our Co-Chief Executive Officer, Chief Operating Officer and board member, are managing members and senior investment professionals of, and have financial and controlling interests in, SLR Capital Partners. In addition, Mr. Kajee, our Chief Financial Officer and Treasurer, serves as the Chief Financial Officer for SLR Capital Partners, and Mr. Talarico, our Chief Compliance Officer and Secretary, serves as General Counsel and Chief Compliance Officer for SLR Capital Partners. SLR Capital Partners and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole and in part, with ours. For example, SLR Capital Partners presently serves as investment adviser to private funds and managed accounts as well as to SCP Private Credit Income BDC LLC, an unlisted BDC, which focuses on investing primarily in senior secured loans, including non-traditional asset-based loans and first lien loans, SLR HC BDC LLC, an unlisted BDC whose principal focus is to invest directly and indirectly in senior secured loans and other debt instruments typically to middle market companies within the healthcare industry, and SLR Private Credit BDC II LLC, an unlisted BDC whose principal focus is to investment in first lien senior secured floating rate loans primarily to upper middle market leveraged companies with EBITDA between approximately $25 million and $250 million that have significant free cash flow and are in non-cyclical industries in which the Investment Adviser has significant experience. In addition, Michael S. Gross, our Chairman and Co-Chief Executive Officer, Bruce Spohler, our Co-Chief Executive Officer and Chief Operating Officer, Shiraz Y. Kajee, our Chief Financial Officer and Treasurer, and Guy F. Talarico, our Chief Compliance Officer and Secretary, serve in similar capacities for SCP Private Credit Income BDC LLC, SLR HC BDC LLC and SLR Private Credit BDC II LLC. SLR Capital Partners and certain investment advisory affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, SLR Capital Partners or its affiliates may determine that we should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with SLR Capital Partners’ allocation procedures. Related party transactions may occur among us, SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare and SLR Equipment. These transactions may occur in the normal course of business. No administrative or other fees are paid to the Investment Adviser by SLR Senior Lending Program LLC, SLR Senior Lending Program SPV LLC, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR Healthcare or SLR Equipment.
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Table of Contents 151 In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law. Regulatory restrictions limit our ability to invest in any portfolio company in which any affiliate currently has an investment. The Company obtained the Exemptive Order from the SEC on June 13, 2017. The Exemptive Order permits us to participate in negotiated co- investment transactions with certain affiliates, each of whose investment adviser is an investment adviser that controls, is controlled by or is under common control with SLR Capital Partners and is registered as an investment adviser under the Advisers Act, in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to the conditions to the Exemptive Order. We believe that it will be advantageous for us to co-invest with funds managed by SLR Capital Partners where such investment is consistent with the investment objectives, investment positions, investment policies, investment strategy, investment restrictions, regulatory requirements and other pertinent factors applicable to us. We have entered into a license agreement with SLR Capital Partners, pursuant to which SLR Capital Partners has agreed to grant us a non-exclusive, royalty-free license to use the names “SLR” and “SOLAR”. In addition, pursuant to the terms of the Administration Agreement, SLR Capital Management provides us with the office facilities and administrative services necessary to conduct our day-to- day operations. Board Consideration of the Advisory Agreement In accordance with Section 15(c) of the 1940 Act, at an in-person meeting held on August 4, 2025, our board of directors, including a majority of the directors who are not “interested persons” as defined in Section 2(a)(19) of the 1940 Act, voted to approve the continuation of the Advisory Agreement between the Company and SLR Capital Partners, such approval being effective as of September 1, 2025 and extending the term of the Advisory Agreement to September 1, 2026. In its consideration of the re-approval of the Advisory Agreement, the board of directors focused on information it had received relating to, among other things: • the nature, extent and quality of advisory and other services provided by SLR Capital Partners, including information about the investment performance of the Company relative to its stated objectives and in comparison to the performance of the Company’s peer group and relevant market indices, and concluded that such advisory and other services are satisfactory and the Company’s investment performance is reasonable; • the experience and qualifications of the personnel providing such advisory and other services, including information about the backgrounds of the investment personnel, the allocation of responsibilities among such personnel and the process by which investment decisions are made, and concluded that the investment personnel of SLR Capital Partners have extensive experience and are well qualified to provide advisory and other services to the Company; • the current fee structure, the existence of any fee waivers, and the Company’s anticipated expense ratios in relation to those of other investment companies having comparable investment policies and limitations, and concluded that the current fee structure is reasonable; • the advisory fees charged by SLR Capital Partners to the Company, to SCP Private Credit Income BDC LLC, to SLR HC BDC LLC and to SLR Private Credit BDC II LLC, and comparative data regarding the advisory fees charged by other investment advisers to BDCs with similar investment objectives, and concluded that the advisory fees charged by SLR Capital Partners to the Company are reasonable; • the direct and indirect costs, including for personnel and office facilities, that are incurred by SLR Capital Partners and its affiliates in performing services for the Company and the basis of determining and allocating these costs, and concluded that the direct and indirect costs, including the allocation of such costs, are reasonable; • the total of all assets managed by SLR Capital Partners, as well as the total number of investment companies and other clients serviced by SLR Capital Partners, possible economies of scale arising from the Company’s size and/or anticipated growth, and the extent to which such economies of scale are reflected in the advisory fees charged by SLR Capital Partners to the Company, and concluded that some economies of scale may be possible in the future; • other possible benefits to SLR Capital Partners and its affiliates (including the interests of the Company’s senior management) arising from their relationships with the Company, and concluded that all such other benefits were not material to SLR Capital Partners and its affiliates; and • possible alternative fee structures or bases for determining fees, and the possibility of obtaining similar services from other third-party service providers, and concluded that the substantive terms of the Advisory Agreement, including the services to be provided, are generally similar to those of the Company’s peer group and that it would be difficult to obtain
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Table of Contents 152 similar services of similar quality on a comparable basis from other third-party service providers or through an internally managed structure. Based on the information reviewed and the discussions detailed above, our board of directors, including a majority of the directors who are not “interested persons” as defined in the 1940 Act, concluded that the fees payable to SLR Capital Partners pursuant to the Advisory Agreement, including the fee rates thereunder, are fair and reasonable in relation to the services to be provided and approved the Advisory Agreement as being in the best interests of the Company and its stockholders. In view of the wide variety of material factors that our board of directors considered in connection with its evaluation of the Advisory Agreement, it is not practical to quantify, rank or otherwise assign relative weights to the specific factors it considered in reaching its decision. Our board of directors did not undertake to make any specific determination as to whether any particular factor, or any aspect of any particular factor, was favorable or unfavorable to the ultimate determination of our board of directors. Rather, our board of directors based its approval on the totality of information presented to, and the investigation conducted by, it. In considering the factors discussed above, individual directors may have given different weights to different factors. Director Independence In accordance with rules of the NASDAQ Stock Market, our board of directors annually determines each director’s independence. We do not consider a director independent unless the board of directors has determined that he or she has no material relationship with us. We monitor the relationships of our directors and officers through a questionnaire each director completes no less frequently than annually and updates periodically as information provided in the most recent questionnaire changes. Our governance guidelines require any director who has previously been determined to be independent to inform the Chairman of the board of directors, the Chairman of the Nominating and Corporate Governance Committee and our Secretary of any change in circumstance that may cause his or her status as an independent director to change. The board of directors limits membership on the Audit Committee, the Nominating and Corporate Governance Committee and the Compensation Committee to independent directors. In order to evaluate the materiality of any such relationship, the board of directors uses the definition of director independence set forth in the rules promulgated by the NASDAQ Stock Market. Rule 5605(a)(2) provides that a director of a BDC shall be considered to be independent if he or she is not an “interested person” of such BDC, as defined in Section 2(a)(19) of the 1940 Act. The board of directors has determined that each of the directors is independent and has no relationship with us, except as a director and stockholder, with the exception of Michael S. Gross, as a result of his positions as the Co-Chief Executive Officer and President of the Company and a Managing Member of SLR Capital Partners, and Bruce Spohler, as a result of his positions as the Co-Chief Executive Officer and Chief Operating Officer of the Company and a Managing Member of SLR Capital Partners. Indemnification Agreements We have entered into indemnification agreements with our directors. The indemnification agreements are intended to provide our directors the maximum indemnification permitted under Maryland law and the 1940 Act. Each indemnification agreement provides that SLR Capital shall indemnify the director who is a party to the agreement (an “Indemnitee”), including the advancement of legal expenses, if, by reason of his or her corporate status, the Indemnitee is, or is threatened to be, made a party to or a witness in any threatened, pending, or completed proceeding, to the maximum extent permitted by Maryland law and the 1940 Act. Item 14. Principal Accountant Fees and Services KPMG LLP has advised us that neither the firm nor any present member or associate of it has any material financial interest, direct or indirect, in the Company or its affiliates. For the years ended December 31, 2025 and December 31, 2024, the Company incurred the following fees for services provided by KPMG LLP, including expenses:
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Table of Contents 153 Table below in thousands Fiscal Year Ended December 31, 2025 Fiscal Year Ended December 31, 2024 Audit Fees $ 865.0 $ 870.0 Audit-Related Fees 75.0 — Tax Fees 204.8 212.9 All Other Fees — — Total Fees: $ 1,144.8 $ 1,082.9 Audit Fees: Audit fees consist of fees for professional services rendered for the audit of our year-end financial statements and quarterly reviews and services that are normally provided by KPMG LLP in connection with statutory and regulatory filings. Audit-Related Fees: Audit-related services consist of fees for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not reported under “Audit Fees.” These services include attest services that are not required by statute or regulation and consultations concerning financial accounting and reporting standards. Tax Services Fees: Tax services fees consist of fees for professional tax services. These services also include assistance regarding federal, state, and local tax compliance. All Other Fees: Other fees would include fees for products and services other than the services reported above. Pre-Approval Policy The Audit Committee has established a pre-approval policy that describes the permitted audit, audit-related, tax and other services to be provided by KPMG LLP, the Company’s independent registered public accounting firm. The policy requires that the Audit Committee pre-approve the audit and non-audit services performed by the independent auditor in order to assure that the provision of such service does not impair the auditor’s independence. Any requests for audit, audit-related, tax and other services that have not received general pre-approval must be submitted to the Audit Committee for specific pre-approval, irrespective of the amount, and cannot commence until such approval has been granted. Normally, pre-approval is provided at regularly scheduled meetings of the Audit Committee. However, the Audit Committee may delegate pre-approval authority to one or more of its members. The member or members to whom such authority is delegated shall report any pre- approval decisions to the Audit Committee at its next scheduled meeting. The Audit Committee does not delegate its responsibilities to pre-approve services performed by the independent registered public accounting firm to management. During the fiscal year ended December 31, 2025, the Audit Committee pre-approved 100% of the services described in this policy.
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Table of Contents 154 PART IV Item 15. Exhibit and Financial Statement Schedules a. Documents Filed as Part of this Report The following reports and consolidated financial statements are set forth in Item 8: Page Management’s Report on Internal Control Over Financial Reporting 97 Report of Independent Registered Public Accounting Firm 98 Consolidated Statements of Assets and Liabilities as of December 31, 2025 and 2024 100 Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 101 Consolidated Statements of Changes in Net Assets for the years ended December 31, 2025, 2024 and 2023 102 Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023 103 Consolidated Schedules of Investments as of December 31, 2025 and 2024 112 Notes to Consolidated Financial Statements 119
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Table of Contents 155 b. Exhibits The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC: ExhibitNumber Description 3.1 Articles of Amendment and Restatement(1) 3.2 Articles of Amendment (12) 3.3 Second Amended and Restated Bylaws(13) 4.1 Form of Common Stock Certificate(2) 4.2 Indenture, dated as of November 16, 2012, between the Registrant and U.S. Bank National Association as trustee(5) 4.3 Description of Securities(15) 10.1 Dividend Reinvestment Plan(1) 10.2 Third Amended and Restated Investment Advisory and Management Agreement by and between the Registrant and SLR Capital Partners, LLC(8) 10.3 Form of Custodian Agreement(7) 10.4 Amended and Restated Administration Agreement by and between Registrant and SLR Capital Management, LLC(6) 10.5 Form of Indemnification Agreement by and between Registrant and each of its directors(1) 10.6 First Amended and Restated Trademark License Agreement by and between Registrant and SLR Capital Partners, LLC(12) 10.7 Form of Share Purchase Agreement by and between Registrant and SLR Capital Investors II, LLC(2) 10.8 Form of Registration Rights Agreement(3) 10.9 Form of Subscription Agreement(3) 10.10 Form of Note Purchase Agreement by and between the Registrant and the lenders party thereto(9) 10.11 Form of Third Supplement to Note Purchase Agreement by and between the Registrant and the lenders party thereto(9) 10.12 Form of Fourth Supplement to Note Purchase Agreement(20) 10.13 Form of Fifth Supplement to Note Purchase Agreement(15) 10.14 Form of Contribution Agreement, dated as of August 26, 2011, by and between SUNS SPV LLC, as the contributee, and SLR Senior Investment Corp., as the contributor(4) 10.15 Form of Amended and Restated Credit and Security Agreement, dated as of August 30, 2024 (as amended October 18, 2024), by and among SUNS SPV LLC, as the borrower, SLR Investment Corp., as servicer and equityholder, each of the lenders from time to time party thereto, Citibank, N.A., as the administrative agent and collateral agent, ING Capital LLC as joint lead arranger and Computershare Trust Company, N.A., as collateral administrator and custodian(20) 10.16 Letter Agreement, dated as of April 1, 2022, between SLR Investment Corp. and SLR Capital Partners, LLC(16) 10.17 Credit Facility Assumption Agreement, dated as of April 1, 2022, by SLR Investment Corp.(16) 10.18 Assumption Agreement, dated as of April 1, 2022, made by SLR Investment Corp. for the benefit of the holders of Notes issued under the Note Purchase Agreement(16) 10.19 Note Purchase Agreement, dated as of March 31, 2020, between SLR Senior Investment Corp. and the purchasers party thereto(16) 10.20 Form of SLR Senior Lending Program LLC Amended and Restated Limited Liability Company Agreement, dated as of October 7, 2022, by and between SLR Investment Corp. and Sunstone Senior Credit L.P. (17) 10.21 Form of Sixth Supplement to Note Purchase Agreement(20) 10.22 Senior Secured Credit Agreement dated as of August 28, 2019 (as amended December 28, 2021, March 11, 2022, August 16, 2024 and December 3, 2024) by and among SLR Investment Corp., Citibank, N.A., as Administrative Agent, the lenders party thereto, JPMorgan Chase Bank, N.A., as syndication agent, and Citibank, N.A., J.P. Morgan Securities LLC, and Sumitomo Mitsui Banking Corporation as Joint Lead Bookrunners and Joint Lead Arrangers(22) 10.23 Form of Seventh Supplement to Note Purchase Agreement(20) 10.24 Form of Eighth Supplement to Note Purchase Agreement(23)
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Table of Contents ExhibitNumber Description 10.25 Form of Ninth Supplement to Note Purchase Agreement(24) 10.26 Equity Distribution Agreement, dated February 28, 2025, by among SLR Investment Corp., SLR Capital Partners, LLC and SLR Capital Management, LLC, on the one hand, and Raymond James & Associates, Inc., Citizens JMP Securities, LLC and Jefferies LLC, as placement agents thereunder, on the other hand(21) 14.2 Code of Business Conduct(18) 19.1 Joint Code of Ethics and Insider Trading Policy(18) 21.1 Subsidiaries of SLR Investment Corp.* 23.1 Consent of Independent Registered Public Accounting Firm* 23.2 Consent of Independent Auditor* 23.3 Consent of Independent Auditor* 23.4 Consent of Independent Auditor* 23.5 Consent of Independent Auditor* 23.6 Consent of Independent Auditor* 31.1 Certification of Co-Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.* 31.2 Certification of Co-Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.* 31.3 Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.* 32.1 Certification of Co-Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.* 32.2 Certification of Co-Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.* 32.3 Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.* 97.1 Clawback Policy(19) 99.1 Crystal Financial LLC dba SLR Credit Solutions (A Delaware Limited Liability Company) Consolidated Financial Statements years ended December 31, 2025 and 2024* 99.2 NEF Holdings, LLC and Subsidiaries (A Limited Liability Company) Consolidated Financial Statements for the years ended December 31, 2025 and December 31, 2024* 99.3 KBH Topco, LLC Consolidated Financial Statements for the years ended December 31, 2025 and December 31, 2024* 99.4 Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Consolidated Financial Statements years ended December 31, 2025 and 2024* 99.5 North Mill Holdco LLC and Subsidiaries (A Delaware Limited Liability Company) Consolidated Financial Statements years ended December 31, 2025 and 2024* 99.6 Report of Independent Registered Public Accounting Firm* 101.INS Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. 101.SCH Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents* 104 Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (1) Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Pre-Effective Amendment No. 7 (File No. 333-148734) filed on January 7, 2010. (2) Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 (File No 333-148734) filed on February 9, 2010. (3) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on November 29, 2010. (4) Previously filed in connection with SLR Senior Investment Corp.’s report on Form 8-K (File No. 814-00849) filed on August 31, 2011. (5) Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 6 (File No. 333-172968) filed on November 16, 2012. (6) Previously filed in connection with SLR Investment Corp.’s registration statement on Form N-2 Post-Effective Amendment No. 10 (File No. 333-172968) filed on November 12, 2013.
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Table of Contents 157 (7) Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 25, 2014. (8) Previously filed in connection with SLR Investment Corp.’s report on Form 10-Q filed on August 6, 2018. (9) Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 20, 2020. (10) Previously filed in connection with SLR Senior Investment Corp.’s report on Form 10-Q (File No. 814-00849) filed on May 7, 2020. (11) Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 24, 2021. (12) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on February 25, 2021. (13) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on December 1, 2021. (14) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on January 12, 2022. (15) Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on March 1, 2022. (16) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on April 1, 2022. (17) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on October 12, 2022. (18) Previously filed in connection with SLR Investment Corp.’s report on Form 10-Q filed on November 6, 2024. (19) Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 27, 2024. (20) Previously filed in connection with SLR Investment Corp.’s report on Form 10-K filed on February 25, 2025. (21) Previously filed in connection with SLR Investment Corp.’s report on Form 8-K filed on February 28, 2025. (22) Previously filed in connection with SLR Investment Corp.’s report on Form 10-Q filed on May 7, 2025. (23) Previously filed in connection with SLR Investment Corp.’s report on Form 10-Q filed on August 5, 2025. (24) Previously filed in connection with SLR Investment Corp.’s report on Form 10-Q filed on November 4, 2025. * Filed herewith. c. Consolidated Financial Statement Schedules Separate Financial Statements of Subsidiaries Not Consolidated: Consolidated Financial Statements for Crystal Financial LLC’s (A Delaware Limited Liability Company) years ended December 31, 2025 and December 31, 2024 are attached as Exhibit 99.1 hereto. Consolidated Financial Statements for NEF Holdings, LLC’s (A Delaware Limited Liability Company) years ended December 31, 2025 and December 31, 2024 are attached as Exhibit 99.2 hereto. Consolidated Financial Statements for KBH Topco LLC’s years ended December 31, 2025 and December 31, 2024 are attached as Exhibit 99.3 hereto. Consolidated Financial Statements for Gemino Healthcare Finance, LLC year ended December 31, 2025 and December 31, 2024 are attached as Exhibit 99.4 hereto. Consolidated Financial Statements for North Mill Holdco LLC and Subsidiaries year ended December 31, 2025 and December 31, 2024 are attached as Exhibit 99.5 hereto. Item 16. Form 10-K Summary None.
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Table of Contents 158 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SLR INVESTMENT CORP. By: /S/ MICHAEL S. GROSS /S/ BRUCE J. SPOHLER Michael S. Gross Co-Chief Executive Officer, President, Chairman of the Board and Director Date: February 24, 2026 Bruce J. Spohler Co-Chief Executive Officer, Chief Operating Officer and Director Date: February 24, 2026 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the dates indicated. Date Signature Title February 24, 2026 /S/ MICHAEL S. GROSS Co-Chief Executive Officer, President, Chairman of the Board and Director (Principal Executive Officer) Michael S. Gross February 24, 2026 /S/ BRUCE J. SPOHLER Co-Chief Executive Officer, Chief Operating Officer and Director (Principal Executive Officer) Bruce J. Spohler February 24, 2026 /S/ STEVEN HOCHBERG Director Steven Hochberg February 24, 2026 /S/ DAVID S. WACHTER Director David S. Wachter February 24, 2026 /S/ LEONARD A. POTTER Director Leonard A. Potter February 24, 2026 /S/ ANDREA C. ROBERTS Director Andrea C. Roberts February 24, 2026 /S/ SHIRAZ Y. KAJEE Chief Financial Officer (Principal Financial Officer) Shiraz Y. Kajee
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Exhibit 21.1 Subsidiaries of SLR Investment Corp. The following list sets forth our consolidated subsidiaries, the state or country under whose laws the subsidiaries are organized, and the percentage of voting securities or membership interests owned by us in each such subsidiary: NEFCORP LLC (Delaware) – 100% NEFPASS LLC (Delaware) – 100% SUNS SPV LLC (Delaware) – 100% The subsidiaries listed above are consolidated for financial reporting purposes. We may also be deemed to control certain portfolio companies.
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Exhibit 23.1 Consent of Independent Registered Public Accounting Firm We consent to the incorporation by reference in the registration statement on Form N-2 of SLR Investment Corp. of our report dated February 24, 2026, with respect to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in the annual report on Form 10-K of SLR Investment Corp. for the year ended December 31, 2025, and to the use of our report dated February 24, 2026 on the senior securities table included herein as an exhibit to the Form 10-K. We also consent to the reference to our firm under the heading “Controls and Procedures” in the Form 10-K. /s/ KPMG LLP New York, New York February 24, 2026
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Exhibit 23.2 CONSENT OF INDEPENDENT AUDITOR SLR Investment Corp. New York, New York We consent to the incorporation by reference in the Registration Statement (No. 333-278755) on Form N-2 of SLR Investment Corp. of our report dated February 17, 2026, relating to the consolidated financial statements of KBH Topco, LLC, appearing in this Annual Report on Form 10-K of SLR Investment Corp. dated February 24, 2026. /s/ FGMK, LLC Bannockburn, Illinois February 24, 2026
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Exhibit 23.3 Consent of Independent Auditor We consent to the incorporation by reference in the Registration Statement on Form N-2 (No. 333-278755) of SLR Investment Corp. of our report dated February 10, 2026, relating to the consolidated financial statements of NEF Holdings, LLC and Subsidiaries, appearing in the Annual Report on Form 10 ‑ K of SLR Investment Corp. for the year ended December 31, 2025, filed with the Securities and Exchange Commission. /s/ Baker Tilly US, LLP Philadelphia, Pennsylvania February 24, 2026
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Exhibit 23.4 Consent of Independent Auditor We consent to the incorporation by reference in the Registration Statement on Form N-2 (No. 333-278755) of SLR Investment Corp. of our report dated February 12, 2026, relating to the consolidated financial statements of Crystal Financial LLC , appearing in the Annual Report on Form 10 ‑ K of SLR Investment Corp. for the year ended December 31, 2025, filed with the Securities and Exchange Commission. /s/ Baker Tilly US, LLP Philadelphia, Pennsylvania February 24, 2026
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Exhibit 23.5 Consent of Independent Auditor We consent to the incorporation by reference in the Registration Statement on Form N-2 (No. 333-278755) of SLR Investment Corp. of our report dated February 12, 2026, relating to the consolidated financial statements of Gemino Healthcare Finance, LLC, appearing in the Annual Report on Form 10 ‑ K of SLR Investment Corp. for the year ended December 31, 2025, filed with the Securities and Exchange Commission. /s/ Baker Tilly US, LLP Philadelphia, Pennsylvania February 24, 2026
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1 Exhibit 23.6 Consent of Independent Auditor We consent to the incorporation by reference in the Registration Statement on Form N-2 (No. 333-278755) of SLR Investment Corp. of our report dated February 12, 2026, relating to the consolidated financial statements of North Mill Holdco LLC, appearing in the Annual Report on Form 10 ‑ K of SLR Investment Corp. for the year ended December 31, 2025, filed with the Securities and Exchange Commission. /s/ Baker Tilly US, LLP Philadelphia, Pennsylvania February 24, 2026
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Exhibit 31.1 Certification Pursuant to Section 302 Certification of Co-Chief Executive Officer I, Michael S. Gross, certify that: 1. I have reviewed this annual report on Form 10-K of SLR Investment Corp.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Dated this 24th day of February 2026. By: /s/ MICHAEL S. GROSS Michael S. Gross Co-Chief Executive Officer
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Exhibit 31.2 Certification Pursuant to Section 302 Certification of Co-Chief Executive Officer I, Bruce J. Spohler, certify that: 1. I have reviewed this annual report on Form 10-K of SLR Investment Corp.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Dated this 24th day of February 2026. By: /s/ BRUCE J. SPOHLER Bruce J. Spohler Co-Chief Executive Officer
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Exhibit 31.3 Certification Pursuant to Section 302 Certification of Chief Financial Officer I, Shiraz Y. Kajee, certify that: 1. I have reviewed this annual report on Form 10-K of SLR Investment Corp.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Dated this 24th day of February 2026. By: /s/ SHIRAZ Y. KAJEE Shiraz Y. Kajee Chief Financial Officer
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Exhibit 32.1 Certification of Co-Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) In connection with the Annual Report on Form 10-K for the year ended December 31, 2025 (the “Report”) of SLR Investment Corp. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, Michael S. Gross, the Co-Chief Executive Officer of the Registrant, hereby certify, to the best of my knowledge, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. /s/ MICHAEL S. GROSS Name: Michael S. Gross Title: Co-Chief Executive Officer Date: February 24, 2026
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Exhibit 32.2 Certification of Co-Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) In connection with the Annual Report on Form 10-K for the year ended December 31, 2025 (the “Report”) of SLR Investment Corp. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, Bruce J. Spohler, the Co-Chief Executive Officer of the Registrant, hereby certify, to the best of my knowledge, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. /s/ BRUCE J. SPOHLER Name: Bruce J. Spohler Title: Co-Chief Executive Officer Date: February 24, 2026
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Exhibit 32.3 Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) In connection with the Annual Report on Form 10-K for the year ended December 31, 2025 (the “Report”) of SLR Investment Corp. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof, I, Shiraz Y. Kajee, the Chief Financial Officer of the Registrant, hereby certify, to the best of my knowledge, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. /s/ SHIRAZ Y. KAJEE Name: Shiraz Y. Kajee Title: Chief Financial Officer Date: February 24, 2026
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Exhibit 99.1 Crystal Financial LLC dba SLR Credit Solutions (A Delaware Limited Liability Company) Consolidated Financial Statements Years Ended December 31, 2025 and 2024
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Crystal Financial LLC dba SLR Credit Solutions Index Years Ended December 31, 2025 and 2024 Page(s) Independent Auditors’ Report 1-2 Consolidated Financial Statements Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Member’s Equity 5 Consolidated Statements of Cash Flows 6 Notes to Consolidated Financial Statements 7-17
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Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 1 Independent Auditors' Report To the Board of Managers and Member of Crystal Financial LLC Opinion We have audited the consolidated financial statements of Crystal Financial LLC dba SLR Credit Solutions (the Company), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of operations, changes in member’s equity and cash flows for the years then ended, and the related notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.
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2 Auditors' Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit. Philadelphia, Pennsylvania February 12, 2026
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The accompanying notes are an integral part of these consolidated financial statements. 3 Crystal Financial LLC dba SLR Credit Solutions Consolidated Balance Sheets December 31, 2025 and 2024 2025 2024 Assets: Cash and cash equivalents $ 3,271,306 $ 30,392,073 Restricted cash 4,808,001 3,047,138 Loan interest and fees receivable 2,910,224 3,369,606 Loans 404,096,839 317,564,915 Less: Unearned fee income (5,306,937) (5,992,318) Allowance for credit losses (10,598,273) (6,326,708) Total loans, net 388,191,629 305,245,889 Property and equipment, net 72,637 88,328 Goodwill 5,156,542 5,156,542 Other assets 16,324,431 16,958,216 Total assets $ 420,734,770 $ 364,257,792 Liabilities: Revolving credit facility, net $ 211,872,246 $ 147,411,083 Accrued expenses 6,320,077 6,150,217 Distributions payable 4,000,000 5,500,000 Other liabilities 4,245,784 4,918,803 Collateral held for borrower obligations 1,096,054 - Total liabilities 227,534,161 163,980,103 Commitments (see Note 8) Member's equity: Class A units 279,191,400 279,191,400 Accumulated deficit (85,990,791) (78,913,711) Total member's equity 193,200,609 200,277,689 Total liabilities and member's equity $ 420,734,770 $ 364,257,792
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The accompanying notes are an integral part of these consolidated financial statements. 4 Crystal Financial LLC dba SLR Credit Solutions Consolidated Statements of Operations Years Ended December 31, 2025 and 2024 2025 2024 Net interest income: Interest income $ 44,928,864 $ 55,246,665 Interest expense (14,159,224) (18,352,784) Net interest income 30,769,640 36,893,881 Recovery of (provision for) for credit losses (4,193,946) 2,849,618 Net interest income after recovery (provision) for credit losses 26,575,694 39,743,499 Operating expenses: Compensation and benefits 8,881,943 9,011,903 Depreciation and amortization 29,430 22,031 General and administrative expenses 1,427,312 1,695,627 Total operating expenses 10,338,685 10,729,561 Other loss: Impairment on investment in equity securities (2,419,950) (4,119,224) Total other loss (2,419,950) (4,119,224) Realized loss from foreign currency transactions, net (4,136) (33,079) Unrealized gain from foreign currency translations, net 9,997 19,923 Net income $ 13,822,920 $ 24,881,558
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The accompanying notes are an integral part of these consolidated financial statements. 5 Crystal Financial LLC dba SLR Credit Solutions Consolidated Statements of Changes in Member's Equity Years Ended December 31, 2025 and 2024 Class A Units Accumulated Deficit Total Member's Equity Balance, December 31, 2023 $ 279,191,400 $ (83,295,269) $ 195,896,131 Distributions - (20,500,000) (20,500,000) Net income - 24,881,558 24,881,558 Balance, December 31, 2024 279,191,400 (78,913,711) 200,277,689 Distributions - (20,900,000) (20,900,000) Net income - 13,822,920 13,822,920 Balance, December 31, 2025 $ 279,191,400 $ (85,990,791) $ 193,200,609
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The accompanying notes are an integral part of these consolidated financial statements. 6 Crystal Financial LLC dba SLR Credit Solutions Consolidated Statements of Cash Flows Years Ended December 31, 2025 and 2024 2025 2024 Cash flows from operating activities: Net income $ 13,822,920 $ 24,881,558 Adjustments to reconcile net income to net cash provided by operating activities: Provision for (recovery of) credit losses 4,193,946 (2,849,618) Accretion of original issue discount (59,717) (326,938) Depreciation 29,430 22,031 Amortization of debt issuance costs 1,055,311 991,618 Paid-in-kind interest and fee income (35,416) - Unrealized gain on foreign currency transactions (11,200) (20,403) Realized loss on foreign currency transactions 21,366 14,875 Impairment on investment in equity securities 2,419,950 4,119,224 Net change in loan interest and fees receivable 570,091 533,220 Net change in other assets (1,786,164) 290,655 Net change in unearned fees (963,841) (1,553,362) Net change in accrued expenses 169,860 277,830 Net change in other liabilities (600,728) (1,827,774) Net cash provided by operating activities 18,825,808 24,552,918 Cash flows from investing activities: Purchases of property and equipment (13,739) (93,890) Investment in term loans (210,575,376) (91,006,470) Repayment of term loans 115,820,682 184,789,596 Lending on revolving lines of credit, net 9,618,780 (6,892,010) Net change in collateral held for borrower obligations 1,096,054 (9,783,573) Net cash (used in) provided by investing activities (84,053,599) 77,013,653 Cash flows from financing activities: Borrowings (repayments) on revolving credit facility, net 64,697,307 (66,409,821) Distributions to member (22,400,000) (20,000,000) Payment of debt issuance costs (2,426,464) (75,030) Payment of finance lease obligations (2,955) (2,730) Net cash provided by (used in) financing activities 39,867,888) (86,487,581) Net change in cash, cash equivalents, and restricted cash (25,359,904 15,078,989 Cash, cash equivalents, and restricted cash at beginning of year 33,439,211 18,360,222 Cash, cash equivalents and restricted cash at end of year $ 8,079,307 $ 33,439,211 Supplemental disclosure of cash flow information: Cash paid for interest $ 13,010,175 $ 17,361,166
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7 Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 1. Organization Crystal Financial LLC (“Crystal Financial” or the “Company”), along with its wholly owned subsidiary, Crystal Financial SPV LLC (“Crystal Financial SPV”), is a commercial finance company based in Boston, Massachusetts, that primarily originates, underwrites, and manages secured debt to middle market companies within various industries. The Company was formed in the state of Delaware on March 18, 2010. During 2021, the Company executed a dba filing to do business using the name SLR Credit Solutions. At December 31, 2025 and 2024, SLR Investment Corp. (“SLRC”) owns 100% of the outstanding ownership units of the Company. 2. Summary of Significant Accounting Policies The following is a summary of significant accounting policies adopted by the Company: Basis of Accounting The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Crystal Financial SPV. All inter-company investments, accounts and transactions have been eliminated in these consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash includes all deposits held at banks. Deposits in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) are exposed to loss in the event of nonperformance by the institution. The Company has had cash deposits in excess of the FDIC insurance coverage and has not experienced any losses on such accounts in the years ended December 31, 2025 and 2024. Restricted cash consists of interest and fees collected on those loans held within Crystal Financial SPV that serve as collateral against the Company’s outstanding line of credit. Upon receipt, these funds are restricted from the Company’s access until the fifteenth of the following month. Also included in restricted cash may be funds that serve as collateral against loans outstanding to certain borrowers as well as funds that serve as collateral to outstanding letters of credit. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 230, Statement of Cash Flows, the Company presents the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash in the consolidated statements of cash flows. Accordingly, amounts generally described as restricted cash will be included with cash and cash equivalents when reconciling the beginning- of-period and end-of-period total amounts shown on the consolidated statements of cash flows.
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 8 2. Summary of Significant Accounting Policies…continued Cash, Cash Equivalents, and Restricted Cash…continued The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the consolidated statements of cash flows. December 31, 2025 2024 Cash and cash equivalents $ 3,271,306 $ 30,392,073 Restricted cash 4,808,001 3,047,138 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flow $ 8,079,307 $ 33,439,211 Loans The Company typically classifies all loans as held to maturity and are measured at amortized cost. Loans funded by the Company are recorded at the amount of unpaid principal, net of unearned fees, discounts and the allowance for credit losses in the Company’s consolidated balance sheets. Interest income is recorded on the accrual basis in accordance with the terms of the respective loan in accordance with ASC 310, Receivables. Generally, interest is not accrued on loans with interest or principal payments 90 days or greater past due or on other loans when management believes collection is doubtful. Loans considered impaired, as defined below, are non-accruing. When a loan is placed on nonaccrual status, all interest previously accrued, but not collected, is reversed against current interest income and all future proceeds received will generally be applied against principal or interest, in the judgment of management. Interest on loans classified as nonaccrual is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual status. Loans are generally returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. There is one loan on nonaccrual status at December 31, 2025. This loan is the same loan classified as Criticized, as defined by the Company’s Loan Loss Policy, in the Allowance for Credit Losses footnote (see Note 3). The Company did not have any loans that were non-performing, modified or past due 30 days or more as of December 31, 2024. Allowance for Credit Losses Effective January 1, 2023, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, as amended (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss methodology with an expected loss methodology, referred to as the current expected credit loss (“CECL”) methodology. The Company adopted ASU 2016-13 using the modified retrospective method. The allowance for credit losses reflects the Company’s current estimate of potential losses inherent in the loan portfolio at year end. Changes to the allowance are recognized through net income in the consolidated statements of operations. While ASU 2016-13 does not require any particular method for determining the allowance for credit losses, it does specify that the reserve should be based on relevant information about past events, including, but not limited to, historical loss rates, current portfolio composition, market conditions, and reasonable and supportable forecasts for the duration of each respective loan.
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 9 2. Summary of Significant Accounting Policies…continued Allowance for Credit Losses...continued The Company’s portfolio consists of both revolvers and term loans. The loans are further classified as either “Pass” or “Criticized.” These classifications are a direct result of the internal risk ratings assigned to each loan during regular loan review meetings. All loans in the Company’s portfolio with similar risk characteristics are individually reviewed when determining the risk rating for each loan. Internal risk ratings are derived upon consideration of various factors related to both the borrower and the borrower’s facility, with those factors related to the borrower’s facility being the key determinant of the overall risk rating. A lower internal risk rating represents less risk while a higher internal risk rating represents more risk. Risk factors of the borrower that are considered include asset and earnings quality, historical and projected financial performance, borrowing liquidity and/or access to capital. Risk factors of the facility that are considered include collateral coverage and the facility’s position within the overall capital structure. Loans rated below a certain threshold are classified as “Pass” and loans rated above a certain threshold are classified as “Criticized.” The allowance for credit losses on loans classified as “Pass” is assessed using historical loss data, the expected weighted-average remaining maturity of the portfolio, and a qualitative economic view. The Company also reviews trends in the weighted-average risk rating of the portfolio in order to determine whether risk characteristics of the current portfolio, relative to the historical portfolio, could signal a greater risk of expected loss. In accordance with CECL, the Company’s allowance for credit losses may be adjusted to reflect management’s assessment of current and future economic conditions that may impact the performance of the borrowers. The assessment includes, but is not limited to, unemployment rates, interest rates, expectations of inflation and/or recession, as well as various other macroeconomic factors that could impact the likelihood of potential credit losses during a loan’s anticipated term. Specific allowances for credit losses are generally applied to loans classified as “Criticized.” Generally, these loans are deemed to be impaired and are typically measured based on a comparison of the recorded carrying value of the loan to the present value of the loan’s expected cash flow using the loan’s effective interest rate, the loan’s estimated market price, or the estimated fair value of the underlying collateral, if the loan is collateral-dependent. Loans are charged off against the allowance at the earlier of either the substantial completion of the liquidation of assets securing the loan, or when senior management deems the loan to be permanently impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the loan agreement. All loans are individually evaluated for impairment according to the Company’s normal loan review process, including overall credit evaluation, nonaccrual status and payment experience. Loans identified as impaired are further evaluated to determine the estimated extent of impairment. Each period, the CECL reserve is reduced by charge-offs, increased by recoveries of previously recognized charge-offs, and increased or decreased by the provision for credit losses, which is recorded on the provision for uncollectible finance receivables on the statement of operations. Goodwill The Company typically assesses goodwill for impairment at the end of each fiscal year using a qualitative assessment.
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 10 2. Summary of Significant Accounting Policies…continued Goodwill...continued Goodwill recognized in business combinations is assigned to the reporting units that are expected to benefit from the combination as of the acquisition date. Goodwill is not amortized; rather goodwill is tested annually for impairment or more frequently upon the occurrence of certain events or substantive changes in circumstances. The Company has elected to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the conclusion is supported that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment test. If the conclusion cannot be supported, or if the Company does not elect to do the qualitative assessment, then the Company will perform a quantitative assessment. If a quantitative goodwill impairment assessment is performed, the Company utilizes a combination of market and income valuation approaches. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the reporting unit is less than its carrying value. No impairment of goodwill resulted from the annual impairment testing during the years ended December 31, 2025 and 2024. Debt Issuance Costs Debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings against its revolving credit facility (see Note 5). These amounts are amortized using the straight-line method into earnings as interest expense ratably over the contractual term of the facility. Net unamortized debt issuance costs totaled $3,957,408 and $2,586,255 at December 31, 2025 and 2024, respectively, and are recorded as a direct deduction in the carrying amount of the revolving credit facility on the accompanying consolidated balance sheets. Fee Income Recognition Nonrefundable loan fees and costs associated with the origination or purchase of loans are deferred and included in loans, net, in the consolidated balance sheets. These commitment fees, as well as certain other fees charged to borrowers, such as amendment and prepayment fees, are recorded in interest income, after receipt, over the remaining life of the loan using a method which approximates the interest method. Income recognized on these fees totaled $9,888,644 and $8,753,999 during the years ended December 31, 2025 and 2024, respectively, and is recorded as a component of interest income on the consolidated statements of operations. Unused line fees are recorded in interest income when received. Unamortized fees totaling $5,306,937 and $5,992,318 are recorded as unearned fee income on the accompanying consolidated balance sheets at December 31, 2025 and 2024, respectively. Property and Equipment, net Property and equipment are carried at cost. Such items are depreciated or amortized on a straight-line basis over the following useful lives: Furniture and fixtures 5-7 years Computer equipment 3-5 years Computer software 3 years Leasehold improvements shorter of remaining lease term or the asset’s estimated useful life
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 11 2. Summary of Significant Accounting Policies…continued Investment in Equity Securities The Company accounts for equity securities in accordance with the guidance set forth in ASC 825, Financial Instruments). The Company obtained an equity interest in an entity formed to acquire certain assets of a borrower during the year ended December 31, 2023 (see Note 3) and elected the measurement alternative set forth in FASB ASC 321-10. The measurement alternative is optional and may be applied to equity securities without a readily determinable fair value. In accordance with the measurement alternative, the interest is recorded at cost, less impairment, plus or minus any changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The company recorded impairment on investment in equity securities totaling $2,419,950 and $4,119,224 during the years ended December 31, 2025 and 2024, respectively. Distributions Distributions to member are recorded as of the date of declaration and are approved by the Company’s Board of Managers. Distributions totaling $4,000,000 and $5,500,000 were declared by the Company at December 31, 2025 and 2024, respectively, but were not paid until the following year. Income Taxes The Company is a single member LLC treated as a disregarded entity for tax purposes. The sole member of Crystal Financial is individually liable for the taxes, if any. The Company applies the provisions set forth in Accounting for Uncertainty in Income Taxes (ASC 740-10). ASC 740-10 provides a comprehensive model for the recognition, measurement and disclosure of uncertain income tax positions. The Company recognizes the tax effect of certain tax positions when it is more likely than not that the tax position will be sustained upon examination, based solely on the technical merits of the tax position. As of December 31, 2025 and 2024, the Company does not have any uncertain tax positions that meet the recognition or measurement criteria of ASC 740-10. As a disregarded entity, the Company has no obligation to file a U.S. federal return for tax periods beginning after July 28, 2016, the date the Company became a disregarded entity for tax purposes. The Company does however continue to file certain state tax returns. As of December 31, 2025, the Company is subject to examination by various state tax authorities for tax years beginning after December 31, 2021. 3. Allowance for Credit Losses Depending on the assigned internal risk rating, loans are classified as either Pass or Criticized. Generally, once a loan is classified as Criticized, the loan is individually evaluated and a specific reserve analysis is required. At December 31, 2025, two loans with aggregate principal balances outstanding net of unamortized fees totaling $7,660,862 are deemed to be impaired (Criticized). Reserves totaling $4,824,432 have been applied against these loans at December 31, 2025. Although not being accrued for at December 31, 2025, interest on the impaired loans is paid-in-kind and therefore there are no interest payments due at December 31, 2025. There are also no principal payments outstanding at December 31, 2025. There were no individually evaluated loans and no interest or principal payments outstanding as of December 31, 2024.
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 12 3. Allowance for Credit Losses…continued The Company also maintains an allowance on unfunded revolver and delayed draw term loan commitments. At December 31, 2025 and 2024, an allowance of $711,441 and $789,061, respectively, was recorded relating to these commitments. This amount is recorded as a component of other liabilities on the Company’s consolidated balance sheets with changes recorded in the provision for credit losses on the Company’s consolidated statements of operations. The methodology for determining the allowance for unfunded revolver and delayed draw term loan commitments is consistent with the methodology used for determining the allowance for credit losses, with the exception that only the portion of the outstanding commitment expected to be drawn is applied against the unfunded commitments. The summary of changes in the allowance for credit losses relating to funded commitments for the years ended December 31, 2025 and 2024 is as follows: Year Ended December 31, 2025 Revolvers Term Loans Total Allow ance for credit losses: Beginning balance $ 717,900 $ 5,608,80 $ 6,326,708 Provision for credit losses 3,391,207 880,358 4,271,565 Loans charged-off - - - Ending allow ance for credit losses $ 4,109,107 $ 6,489,166 $ 10,598,273 Year Ended December 31, 2024 Revolvers Term Loans Total Allow ance for credit losses: Beginning balance $ 656,589 $ 8,792,030 $ 9,448,619 Provision (recovery) for credit losses 61,311 (3,183,222) (3,121,911) Loans charged-off - - - Ending allow ance for credit losses $ 717,900 $ 5,608,808 $ 6,326,708 There were no recoveries of loans previously charged off recognized during the years ended December 31, 2025 and 2024, respectively. The Company’s primary credit quality indicator is its internal risk ratings, which are used to determine whether a loan should be classified as “Pass” or “Criticized.” The following tables present the net book value of the Company’s loan portfolio as of December 31, 2025 and 2024, by year of origination, loan type, and credit quality indicator. December 31, 2025 Net Book Value of Loans Receivable by Year of Origination 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total Revolvers Pass $ - $ - $ - $ - $ - $ 26,581,808 $ 26,581,808 Criticized - - - - - 6,051,455 6,051,455 Total revolvers - - - - - 32,633,263 32,633,263 Term loans Pass 152,554,991 49,342,872 74,353,002 57,867,865 30,428,502 - 364,547,232 Criticized - 1,609,407 - - - - 1,609,407 Total term loans 152,554,991 50,952,279 74,353,002 57,867,865 30,428,502 - 366,156,639 Total loans receivable $ 152,554,991 $ 50,952,279 $ 74,353,002 $ 57,867,865 $ 30,428,502 $ 32,633,263 398,789,902 Allowance for credit losses (10,598,273) Loans receivable, net $ 388,191,629
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 13 3. Allowance for Credit Losses…continued December 31, 2024 Net Book Value of Loans Receivable by Year of Origination 2024 2023 2023 2021 Prior Revolving Loans Amortized Cost Basis Total Revolvers Pass $ - $ - $ - $ - $ - $ 31,301,165 $ 31,901,165 Criticized - - - - - - - Total revolvers - - - - - 31,301,165 31,901,165 Term loans Pass 76,717,742 110,294,940 72,458,588 - 20,200,162 - 279,671,432 Criticized - - - - - - - Total term loans 76,717,742 110,294,940 72,458,588 - 20,200,162 - 279,671,432 Total loans receivable $ 76,717,742 $ 110,294,940 $ 72,458,588 $ - $ 20,200,162 $ 31,301,165 311,572,579 Allowance for credit losses (6,326,708) Loans receivable, net $ 305,245,889 Accrued interest receivable is $2,445,307and $2,464,813 at December 31, 2025 and 2024, respectively, and is included as a component of loan interest and fees receivable on the consolidated balance sheets. Accrued interest receivable is excluded from the estimate of credit losses. The accrual of accrued interest is in accordance with the non-accrual policy as stated in Note 2. 4. Property and Equipment, net The cost basis of the Company’s property and equipment as well as the accumulated depreciation at December 31, 2025 and 2024, are as follows: December 31, 2025 2024 Furniture and fixtures $ 95,280 $ 95,280 Leasehold Improvements 20,618 20,618 Computer equipment 237,761 232,272 Computer software 24,618 21,315 $ 378,277 $ 369,485 Less: Accumulated depreciation (305,640) (281,157) $ 72,637 $ 88,328 Finance lease assets totaling $25,907 are included as a component of computer equipment in the above schedule at December 31, 2025 and 2024. Depreciation expense of $29,430 and $22,031 was recognized during the years ended December 31, 2025 and 2024, respectively. 5. Debt Obligations and Financings Revolving Credit Facility On May 12, 2011, the Company entered into a Loan Financing and Servicing Agreement (the “Credit Agreement”) in the form of a revolving credit facility.
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 14 5. Debt Obligations and Financings…continued Revolving Credit Facility…continued The Company has the ability to borrow funds denominated in certain foreign currencies under the facility. The maximum amount available to be borrowed in foreign denominated currencies is the US Dollar equivalent of $120,000,000. During 2025 and 2024, the Company incurred fees and expenses totaling $2,426,464 and $143,271, respectively, in connection with certain amendments to the credit facility. These costs were deferred and are being amortized on a straight-line basis over the contractual term of the Credit Agreement as an adjustment to interest expense. On September 12, 2025, the Company amended its revolving credit facility. At December 31, 2025, the amount available to be borrowed under the facility is the lesser of (a) $300,000,000 or (b) the amount calculated and available per the Borrowing Base, as defined in the amended Credit Agreement. Prior to the September 12, 2025 amendment, borrowings on the facility bore interest at a rate of 2.95% plus the Lenders’ cost of funds, as defined in the Credit Agreement. Upon execution of the amendment, the facility bears interest of 2.55% plus the Lenders’ cost of funds, as defined by the Credit Agreement. The applicable cost of funds varies depending on the currency in which the funds are borrowed. At December 31, 2025, the effective rates were between 5.10% and 6.42%. The Company also pays an undrawn fee between .25% and .50% on unfunded commitments. The revolving credit facility is comprised of the following at December 31, 2025 and 2024: December 31, 2025 2024 Principal borrowings $ 215,829,654 $ 149,997,338 Unamortized debt issuance costs (3,957,408) (2,586,255) Revolving credit facility, net $ 211,872,246 $ 147,411,083 Prior to the September 12, 2025 amendment, the credit facility was to terminate on the earlier of August 15, 2027 or upon occurrence of a Facility Termination event as defined in the amended Credit Agreement. Upon execution of the amendment, the credit facility terminates on the earlier of March 12, 2030 or upon the occurrence of a Facility Termination Event, as defined in the amended Credit Agreement. Commencing on September 12, 2028 and continuing every three months until the facility’s termination date, the Company may be required to make principal pay-downs on certain amounts outstanding. The amount to be paid down is contingent upon the future amount outstanding as well as the amount of future non-mandatory prepayments made on the credit facility. Cash, as well as those of the Company’s loans that are held within Crystal Financial SPV, serve as collateral against the facility. The Company has made certain customary representations and warranties under the facility, and is required to comply with various covenants, reporting requirements, and other customary requirements for similar credit facilities. The Credit Agreement includes usual and customary events of default for credit facilities of this nature. The Company is in compliance with all covenants at December 31, 2025 and 2024 6. Related Party Activity The Company may co-invest with SLRC and its affiliates in certain loans and investments. These transactions occur in the normal course of business.
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 15 7. Member’s Capital Crystal Financial has issued limited liability company interests, referred to as Class A Units. Each unit entitles its holder to one vote on all matters submitted to a vote of the members. At December 31, 2025 and 2024, the Company had 280,303 outstanding Class A Units, all of which are owned by SLRC. 8. Commitments The Company is party to financial instruments with off-balance sheet risk including unfunded revolver and delayed draw term loan commitments to certain borrowers. Under the revolving credit and delayed draw term loans, aggregate unfunded commitments total $97,150,559 and $115,751,802 at December 31, 2025 and 2024, respectively. These agreements have fixed expiration dates. The revolving credit agreements typically require payment of a monthly fee equal to a certain percentage times the unused portion of the revolving line of credit. As the unfunded commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of credit that can be extended under each of the revolving credit agreements and delayed draw term loan agreements is typically limited to the borrower’s available collateral, which is used in calculating the borrower’s borrowing base at the time of a respective draw. 9. Variable Interest Entity In accordance with US GAAP, the Company evaluates (a) whether it holds a variable interest in an entity, (b) whether the entity is a variable interest entity (“VIE”) and (c) whether the Company is the primary beneficiary of the VIE. As part of a loan restructuring, the Company obtained a minority ownership interest in a joint venture operating company during 2023. It was determined that the Company has a variable interest in the joint venture. The Company does not have the individual power to direct the joint venture’s activities and it does not share disproportionally in the obligation to absorb potential losses or the right to receive expected returns of the joint venture. Accordingly, it was determined that the Company is not the primary beneficiary and the VIE is not consolidated in the accompanying consolidated financial statements. In accordance with ASC 321-10, the Company elected the measurement alternative for its interest without a readily determinable fair value. The measurement alternative permits the Company to carry its interest at cost less impairment. For interests accounted for under the measurement alternative cost method, the Company evaluates whether indicators of impairment exist. If an interest is determined to be impaired, the carrying value is written down to its estimated fair value with the impairment recognized in the Consolidated Statement of Operations. The following table sets forth the information with respect to the unconsolidated VIEs in which the Company holds a variable interest as of December 31, 2025 and 2024. December 31, 2025 December 31, 2024 Equity interest included in Other assets on the consolidated balance sheets $ 13,833,813 $ 14,144,910 Maximum risk of loss (1) 13,833,813 14,144,910 (1) includes the equity investment the Company has made, or could be required to make
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 16 10. Fair Value of Financial Instruments ASC 820, Fair Value Measurements establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1- Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting has the ability to access at the measurement date. Level 2- Inputs other than the quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3- Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There were no financial assets or financial liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024. Financial instruments that are not recorded at fair value on a recurring basis consist of cash, restricted cash, interest receivable, loans receivable, collateral held for borrower obligations and the revolving credit facility. The carrying value of the Company’s cash and restricted cash approximates its fair value at December 31, 2025 and 2024. The Company’s loans receivable are recorded at outstanding principal, net of any deferred fees and costs, unamortized purchase discounts and the allowance for credit losses. If the Company elected the fair value option, the estimated fair value of the Company’s loans receivable would be derived using among other things, a discounted cash flow methodology that considers various factors including the type of loan and related collateral, current market yields for similar debt investments, estimated cash flows, as well as a discount rate that reflects the Company’s assessment of risk inherent in the cash flow estimates. If the Company elected the fair value option, the estimated fair value of the Company’s revolving credit facility would approximate the carrying value at December 31, 2025 and 2024. The fair value is estimated based on consideration of current market interest rates for similar debt instruments. The following table presents the carrying amounts, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments, at December 31, 2025 and 2024.
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Crystal Financial LLC dba SLR Credit Solutions Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 17 10. Fair Value of Financial Instruments…continued December 31, 2025 Fair Value Measurements Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 3,271,306 $ 3,271,306 $ 3,271,306 $ - $ - Resticted cash 4,808,001 4,808,001 4,808,001 - - Loans receivable 404,096,839 404,096,839 - - 404,096,839 Financial liabilities: Revolving credit facility 215,829,654 215,829,654 - - 215,829,654 December 31, 2024 Fair Value Measurements Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 30,392,073 $ 30,392,073 $ 30,392,073 $ - $ - Resticted cash 3,047,138 3,047,138 3,047,138 - - Loans receivable 317,564,915 317,564,915 - - 317,564,915 Financial liabilities: Revolving credit facility 149,997,338 149,997,338 - - 149,997,338 11. Subsequent Events The Company has evaluated subsequent events through February 12, 2026, the date the financial statements are available to be issued.
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Exhibit 99.2 C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S NEF Holdings, LLC and Subsidiaries (A Limited Liability Company) Years ended December 31, 2025 and December 31, 2024 With Independent Auditors’ Report
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NEF Holdings, LLC and Subsidiaries Consolidated Financial Statements Years ended December 31, 2025 and December 31, 2024 Contents Independent Auditors’ Report 1 Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Comprehensive Income/(Loss) 5 Consolidated Statements of Changes in Members’ Capital 6 Consolidated Statements of Cash Flows 7 Notes to the Consolidated Financial Statements 8
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1 Independent Auditors' Report To the Board of Managers and Members of NEF Holdings, LLC and Subsidiaries Opinion We have audited the consolidated financial statements of NEF Holdings, LLC and Subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of operations, comprehensive income/(loss), changes in members’ capital, and cash flows for the years then ended, and the related notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. GAAP, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.
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2 Auditors' Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit. Philadelphia, Pennsylvania February 10, 2026
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3 NEF Holdings, LLC and Subsidiaries Consolidated Balance Sheets At December 31, 2025 and December 31, 2024 (In Thousands) 2025 2024 Assets Cash $ 5,749 $ 6,252 Restricted cash 72 72 Financing receivables, net 299,753 324,939 Equipment off lease, net of impairment - 899 Fixed assets, net 190 225 Goodwill 29,832 29,832 Other assets 2,689 4,039 Total assets $ 338,285 $ 366,258 Liabilities and Members’ Capital Liabilities: Senior secured credit facility, net $ 236,683 $ 260,483 Loans from affiliate 8,500 13,582 Accounts payable and accrued expenses 1,651 2,260 Good faith deposits 600 661 Other liabilities 2,607 3,434 Total liabilities 250,041 280,420 Members’ capital: Members’ capital 88,244 85,838 Total members’ capital 88,244 85,838 Total liabilities & members’ capital $ 338,285 $ 366,258 See accompanying notes to the consolidated financial statements.
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4 NEF Holdings, LLC and Subsidiaries Consolidated Statements of Operations For the Years ended December 31, 2025 and December 31, 2024 (In Thousands) 2025 2024 Net operating income: Interest income $ 26,032 $ 19,917 Interest expense 17,056 14,774 Net interest income 8,976 5,143 Other income 2,569 2,099 Net operating income 11,545 7,242 (Recovery)/provision for credit losses and impairments of equipment off lease (446) 3,354 Net operating income after recoveries, provisions and impairments 11,991 3,888 Expenses: Compensation and benefits 5,893 9,639 General and administrative expenses 3,377 3,486 Lease and loan restructuring costs 49 226 Depreciation and amortization 67 71 Total expenses 9,386 13,422 Net income/(loss) $ 2,605 $ (9,534) See accompanying notes to the consolidated financial statements.
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5 NEF Holdings, LLC and Subsidiaries Consolidated Statements of Comprehensive Income/(Loss) For the Years ended December 31, 2025 and December 31, 2024 (In Thousands) 2025 2024 Net income/(loss) $ 2,605 $ (9,534) Other comprehensive income/(loss): Derivative instruments designated and qualifying as cash flow hedges: Realized holding (loss) arising during the year (10) (262) Reclassification adjustment for (losses) included in net income/(loss) - (147) Total other comprehensive income/(loss) (10) (409) Total comprehensive income/(loss) $ 2,595 $ (9,943) See accompanying notes to the consolidated financial statements.
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6 NEF Holdings, LLC and Subsidiaries Consolidated Statements of Changes in Members’ Capital For the Years ended December 31, 2025 and December 31, 2024 (In Thousands) Members’ capital at December 31, 2023 $ 95,822 Capital distributions (41) Other comprehensive income/(loss) (409) Net income/(loss) (9,534) Members’ capital at December 31, 2024 85,838 Capital distributions (189) Other comprehensive income/(loss) (10) Net income/(loss) 2,605 Members’ capital at December 31, 2025 $ 88,244 See accompanying notes to the consolidated financial statements.
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7 NEF Holdings, LLC and Subsidiaries Consolidated Statements of Cash Flows For the Years ended December 31, 2025 and December 31, 2024 (In Thousands) 2025 2024 Cash flows from operating activities Net income/(loss) $ 2,605 $ (9,534) Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: (Recovery)/provision for credit losses and impairments of equipment off lease (446) 3,354 Depreciation and amortization 67 71 Amortization of deferred financing costs 917 878 Amortization of upfront fees received and initial direct costs paid 168 322 Write off of software costs 575 - Amortization of software as a service implementation costs - 64 Net (gains)/losses on sales of equipment off lease 953 (119) Change in interest rate derivative fair value - 43 Changes in operating assets and liabilities: (Increase)/Decrease in other assets 274 171 (Increase)/Decrease in interest receivable 542 (1,249) Increase/(Decrease) in interest payable (445) 618 Increase/(Decrease) in accounts payable and accrued expenses (609) 262 Increase/(Decrease) in good faith deposits (61) 143 Increase/(Decrease) in other liabilities (496) 205 Net cash provided by/(used in) operating activities 4,044 (4,771) Cash flows from investing activities Investments in secured loans and direct finance leases (125,817) (197,948) Collections of principal on secured loans and direct finance leases 162,849 74,565 Purchase of financing receivables from affiliate (13,423) (2,231) Initial direct costs paid (688) (349) Proceeds from sales of equipment off lease 2,108 3,493 Cash flows from (purchases)/sales of fixed assets (32) (18) Net cash provided by/(used in) investing activities 24,997 (122,488) Cash flows from financing activities Borrowings on credit facility and loans from affiliate 116,300 347,795 Repayments on credit facility and loans from affiliate (144,658) (225,344) Payment of credit facility closing fees (996) (2,687) Capital distributions (189) (41) Net cash provided by/(used in) financing activities (29,543) 119,723 Net increase/(decrease) in cash and restricted cash (503) (7,536) Cash and restricted cash at the beginning of period 6,324 13,860 Cash and restricted cash at the end of period $ 5,821 $ 6,324 Supplemental disclosures of cash flow information Interest paid $ 16,584 $ 13,235 See accompanying notes to the consolidated financial statements
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8 NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements For the Years ended December 31, 2025 and December 31, 2024 (In Thousands) 1. Organization and Business NEF Holdings, Inc. was organized on June 7, 2013 as a Delaware corporation and commenced its operations in June 2013. Effective January 1, 2014, NEF Holdings, Inc. converted from a corporation to a limited liability company (“LLC”), NEF Holdings, LLC (“NEF Holdings”), pursuant to Section 18-214 of the Limited Liability Act in the State of Delaware. Subsequent to the close of business on July 31, 2017, NEF Holdings was acquired by SLR Investment Corp., formerly Solar Capital Ltd. (“SLRC”). As of December 31, 2025 and December 31, 2024, NEF Holdings had four wholly-owned subsidiaries: Nations Fund I, LLC (“Fund I”), Nations Equipment Finance, LLC (“NEF”), Equipment Operating Leases, LLC (“EOL”), and Loyer Capital LLC (“Loyer Capital”) (collectively, the “Company”). The Company is headquartered in Wilton, Connecticut. Nations Fund I, Inc. was organized on September 17, 2010 as a Delaware corporation. Effective January 1, 2014, Nations Fund I, Inc. converted from a corporation to a LLC, Nations Fund I, LLC, pursuant to Section 18-214 of the Limited Liability Act in the State of Delaware. Fund I is a commercial equipment finance company that provides term loans and leases primarily to middle market and privately held companies. Fund I focuses on direct origination of loans and equipment leases secured by equipment collateral, such as trailers, trucks, transportation, food processing, essential use technology, and construction equipment NEF was organized as a LLC under the laws of the State of Delaware and commenced operations on August 24, 2010. NEF, doing business as SLR Equipment Finance, serves as the investment manager for the Company. Services provided by NEF include, among other things, identifying, structuring and negotiating transactions, monitoring, advising and managing investments, exercising control rights, options or warrants, liquidating investments, cash management, accounting, tax, compliance and legal services. NEF Investments, LLC, a wholly owned subsidiary of NEF Holdings, was organized as a Delaware LLC on January 22, 2018. On April 18, 2018, NEF Investments’ LLC agreement was amended which changed the company’s name to Equipment Operating Leases, LLC. EOL is a commercial equipment finance company that provides term loans and leases primarily to middle market and privately held companies. Loyer Capital was organized as a LLC under the laws of the State of Delaware and commenced operations in May 2019. Loyer Capital is a commercial equipment finance company that provides term loans and leases primarily to middle market and privately held companies.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 9 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These consolidated financial statements include the accounts of NEF Holdings and its wholly owned subsidiaries, Fund I, NEF, EOL, and Loyer Capital. All significant intercompany balances and transactions are eliminated in consolidation. Certain amounts in the prior period financial statements have been reclassified to conform to the current year’s presentation. Use of Estimates The presentation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that impact the amounts reported in the consolidated financial statements and accompanying notes. Such estimates and assumptions are subject to change in the future as additional information becomes available or as circumstances are modified. Actual results could differ materially from these estimates. Management’s most significant estimates and assumptions are used in estimating an allowance for credit losses on financing receivables, impairments of equipment off lease, fair values of unguaranteed residual values, and goodwill. Cash The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash includes all deposits held at banks. Deposits in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) are exposed to loss in the event of non-performance by the institution. The Company has had cash deposits in excess of the FDIC insurance coverage and has not experienced any losses on such accounts. At December 31, 2025 and December 31, 2024, the Company’s cash balance totaled $5,821, and $6,324, respectively. Included in the Company’s cash balance as of December 31, 2025 and December 31, 2024 is restricted cash of $72, which is maintained in connection with the lease of the Company’s office space. Financing Receivables Included in financing receivables in the consolidated balance sheets are the Company’s net investments in direct financing leases and secured loans. Net investment in direct finance leases is reported net of unearned income, deferred non-refundable fees and initial direct costs associated with their origination, and inclusive of guaranteed and unguaranteed residual values. Direct finance leases are usually long-term in nature, typically ranging for a period of three to seven years and include either a nominal or fair market value purchase option at the end of the lease term. Non-refundable fees received and initial direct costs incurred associated with the origination of direct finance leases are deferred and are recognized as an adjustment to interest income over the contractual life of the direct finance leases using the interest method. Secured loans are reported at the principal amount outstanding, net of non-refundable fees, initial direct costs and accrued interest. These fees and initial direct costs are deferred and recognized as an adjustment to interest income over the contractual life of the loans using the interest method.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 10 2. Summary of Significant Accounting Policies (continued) Income Recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the revenue model is for an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. While this guidance replaced most existing revenue recognition guidance in U.S. GAAP, ASC 606 is not applicable to financial instruments and, therefore, does not impact most of the Company’s revenues. For direct finance leases, the difference between the cost of the equipment and the total finance lease receivable plus, where applicable, the unguaranteed or guaranteed residual value is recorded as unearned income. Unearned income is amortized as earned income over the term of the transaction using the interest method. For the years ended December 31, 2025 and December 31, 2024, interest income from direct financing leases totaled $11,933 and $11,888, respectively, which is included in interest income in the consolidated statements of operations. For secured loans, interest income is recorded on the accrual basis in accordance with the terms of the respective loan. For the years ended December 31, 2025 and December 31, 2024, interest income from secured loans totaled $14,099 and $8,029, respectively, which is included in interest income in the consolidated statements of operations. The Company’s revenue recognition pattern for revenue streams within the scope of ASC 606 include fees for providing administrative and collateral monitoring services, which are earned ratably over the period in which the services are provided. Such revenues are recognized when evidence of an arrangement exists, the performance obligations are satisfied, collections are probable and the price is fixed or determinable. Other Income Amounts in other income in the consolidated statements of operations primarily include gains and losses on sales of equipment, fees charged for early terminations of financing arrangements, other miscellaneous fees earned in connection with the administration of such financing arrangements and net impacts of foreign currency translation. Fixed Assets Fixed assets consist of furniture and fixtures, software, computers, leasehold improvements, and office equipment, and are stated at cost less accumulated depreciation and amortization. Expenditure for repairs and maintenance that do not extend the useful life of the assets are expensed as incurred and are included in general and administrative expenses in the Company’s consolidated statements of operations. Depreciation and amortization of fixed assets are calculated using the straight-line method over their respective useful lives and recorded in depreciation and amortization in the consolidated statements of operations. Useful Life (Years) Furniture and fixtures 7 Office equipment 5 Computers 3 Software Lesser of 5 years or license period Leasehold improvements Lesser of the useful life of the asset or lease term
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 11 2. Summary of Significant Accounting Policies (continued) Good Faith Deposits Good faith deposits represent cash received from the Company’s customers, when the proposal for a potential transaction is signed. These deposits are used to pay expenses such as third-party appraisals, document fees and travel and related costs incurred by the Company in connection with the origination of the transaction. If the deposit exceeds the expenses incurred by the Company, the excess amount may be refundable to the customer. If the expenses incurred exceed the deposits received, the Company’s customers are liable for the overage. Such overages are included in other assets on the consolidated balance sheets. In the event the Company approves a transaction with a customer and the customer elects not to pursue the transaction, the Company recognizes any remaining good faith deposit into income, as allowed by the agreed upon terms of the signed proposal. Such amounts are included in other income in the consolidated statements of operations. In certain instances, the Company incurs costs to restructure financing receivables, which are in excess of the customer's good faith deposit, such as legal fees and other expenses associated with the repossession and liquidation of equipment. If these costs are deemed not collectable from the Company’s customers, then such costs are expensed and recorded as lease and loan restructuring costs on the consolidated statements of operations. Allowance for Credit Losses on Financing Receivables In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13 – Financial Instruments – Credit Losses. This ASU requires companies to broaden the information considered in developing its expected credit loss estimates on financing receivables measured either individually or collectively. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses, which delayed the effective date of ASU 2016-13 and made the adoption effective for the Company for the fiscal year beginning after December 15, 2022. The Company adopted this guidance on January 1, 2023 using the modified retrospective approach, which did not have a material impact on its consolidated balance sheets and consolidated statements of operations, however expanded the disclosure requirements surrounding this topic. The Company maintains an allowance for credit losses on financing receivables (which includes accrued interest in secured loans) at a level sufficient to absorb credit losses expected to arise over the life of the financing receivables, as of the date of the consolidated financial statements. The Company’s financing receivables are all secured by the underlying collateral. Additionally, the Company looks to three forms of repayment in analyzing the risk of loss associated with underwriting an individual transaction, namely, cash flows of the obligor’s existing operations, the value of the underlying collateral securing the financing receivable and where applicable, the potential for repayment from a personal or corporate guarantor. In determining its allowance for credit losses on financing receivables, the Company considers numerous factors including forward looking industry benchmarks and equipment trends, type of financing receivable, credit quality of its customer, historical loss rates, collateral coverage, and remaining term to maturity of the financing arrangement, which are reviewed and updated, as appropriate, on an ongoing basis. The Company’s application of its credit loss policy is applied on an individual transaction basis. Individually identified non-performing financing receivables are measured based on the specific circumstances of the transaction and a specific allowance for credit loss is established, if necessary. The specific allowance is measured based on a comparison of the recorded carrying value of the financing receivables to the present value of the financing receivable’s expected cash flow using the transaction internal rate of return, the financing receivable’s estimated market price, or the estimated fair value of the underlying collateral, if the financing receivable is collateral dependent.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 12 2. Summary of Significant Accounting Policies (continued) Allowance for Credit Losses on Financing Receivables (continued) Uncollectible financing receivables are charged off against the allowance at the earlier of either the substantial completion of the liquidation of assets securing the financing receivable, or when senior management deems the financing receivable to be permanently impaired. The Company classifies a financing receivable as delinquent when it is overdue by more than 60 days. As of December 31, 2025, financing receivables with an outstanding balance of $1,055, $2,135, and $5,013 were between 61-90 days past due, 91-120 days past due and greater than 120 days past due, respectively. As of December 31, 2024, financing receivables with an outstanding balance of $16,708, $0, and $0 were between 61-90 days past due, 91-120 days past due and greater than 120 days past due, respectively. The Company assessed that there is a secured loan where the borrower is experiencing financing difficulty. We expect that the repayment will be provided substantially through cash flow from operations or sale of the collateral. At December 31, 2025 and December 31, 2024, the outstanding balance on the secured loan that has been delinquent in its payments is $15,587 and $17,883, respectively. While the Company continues to engage with the borrower for repayment, it has determined, based on third party appraisals, that the underlying collateral is sufficient to cover the total of the secured loan in the event the customer cannot repay. The net book value of financing receivables by year of origination at December 31, 2025 and December 31, 2024 were as follows: Net Book Value of Financing Receivables by Year of Origination At December 31, 2025 2025 2024 2023 2022 Prior Total Financing Receivables, gross $ 99,564 $ 111,622 $ 55,125 $ 10,190 $ 28,217 $ 304,717 Allowance for credit losses (4,964) Financing Receivables, net $ 299,753 At December 31, 2024 2024 2023 2022 2021 Prior Total Financing Receivables, gross $ 181,662 $ 82,736 $ 18,058 $ 34,419 $ 13,633 $ 330,508 Allowance for credit losses (5,569) Financing Receivables, net $ 324,939 Non-Accrual Financing Receivables Income recognition is generally suspended for financing receivables after 90 days of non-payment, or if full recovery becomes doubtful based on the assessment by the Company. Income recognition is resumed when financing receivables are less than 90 days past due. At December 31, 2025 and December 31, 2024, financing receivables with an outstanding balance of $22,735and $17,883, respectively, were on non-accrual of income. Equipment on Lease Leasing equipment is comprised of equipment under operating leases. Leasing equipment is recorded at cost and depreciated on a straight- line basis over the estimated useful life of the equipment. Income is recorded on a straight-line basis over the term of the lease which is included in interest income in the consolidated statements of operations.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 13 2. Summary of Significant Accounting Policies (continued) Equipment on Lease (continued) The estimated useful lives and residual values of the Company’s leasing equipment are based on independent third-party appraisals and management’s judgment. The Company reviews its depreciation policies on a regular basis to determine whether changes have taken place that would suggest that a change in its depreciation policies, useful lives of its equipment or the assigned residual values is warranted. At December 31, 2025 and December 31, 2024 the Company had no leasing equipment under operating leases. Leasing equipment is tested for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recovered. Key indicators of impairment on leasing equipment include, among other factors, a sustained decrease in operating profitability, a sustained decrease in utilization, or indications of technological obsolescence. Equipment off Lease Equipment off lease arises when the Company repossesses collateral that secured a financing receivable in a customer default scenario. Such equipment is intended to be sold and is classified as assets held for sale, in accordance with the provisions of ASC 360, Property, Plant & Equipment. At the time of repossession, the financing receivable is transferred to equipment off lease at the lower of cost or fair value. At December 31, 2025 and December 31, 2024, equipment off lease totaled $0 and $899, respectively, in the consolidated balance sheets. A review for impairment of equipment off lease is performed at least annually or when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the years ended December 31, 2025 and December 31, 2024, the Company recorded impairment charges of $160 and $1,198, respectively, which are included in provision for credit losses and impairments of equipment off lease on the consolidated statements of operations. Derivative Instruments The Company manages exposure to interest rates through the use of interest rate caps and zero cost interest rate collars traded in the over- the-counter markets with other financial institutions. The Company does not enter into derivative financial instruments for speculative purposes. Derivative instruments are recognized at fair value and included in other liabilities in the consolidated balance sheets. The Company designated its derivative instruments as highly effective hedges. On the date the derivative contract is entered into, the Company formally documents the relationships between the hedging instrument and the hedged item, as well as its risk management objective and strategy for undertaking various hedge transactions. Hedge effectiveness is measured at the hedge’s inception and, on an on- going basis, to determine whether the derivatives are highly effective in offsetting the changes in cash flows of the hedged item. At December 31, 2025 and December 31, 2024, the Company held one and two interest rate collars that were deemed highly effective and had a notional value totaling $250,000 and $190,000 and had a fair value of ($10) and $1, respectively. In 2025 and 2024, there were no material changes in fair value of the zero cost interest rate collars. Changes in fair values of these derivative instruments, which were deemed highly effective during the years ended December 31, 2025 and December 31, 2024, totaled ($10) and ($262), respectively, and are included in other comprehensive income, offset by reclassification gains/(losses) into earnings of $0 and ($147), respectively. Reclassifications into earnings are included in interest expense in the consolidated statements of operations.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 14 2. Summary of Significant Accounting Policies Basis (continued) Debt Senior secured credit facility represents the Company’s principal balance under its long-term revolver, which is carried at amortized cost, along with the related accrued interest payable, net of unamortized deferred financing costs. Loans from affiliates represent the Company’s unpaid principal balance on term loans, along with the related accrued interest payable to SLRC, a related party, as described in note 1. As of December 31, 2025, the Company had an outstanding principal payable to SLRC of $8,500. As of December 31, 2024, the principal outstanding payable to SLRC was $3,000 and it had $10,384 outstanding to other affiliates. During the year ended December 31, 2025, the Company fully extinguished outstanding affiliate loan balances of $10,384. On December 1, 2024, the Company entered into a $6,000 revolver facility with SLRC with an original maturity date of December 1, 2025. The facility has an interest rate of 8.5% per annum, payable at the end of each quarter and at December 31, 2024, the Company had drawn down $3,000 of the $6,000 commitment. On July 2, 2025, the Company amended the revolving credit facility with SLRC to increase the total commitment from $6,000 to $18,000. The Company extended its maturity date to December 31, 2028. The facility has an interest rate of 8.5% per annum, payable at the end of each quarter and at December 31, 2025, the Company had drawn down $8,500 of the $18,000 commitment. Deferred Financing Costs Deferred financing costs represent fees and other incremental costs incurred in connection with the financing of the Company’s senior secured credit facilities. Such costs are amortized using the straight-line method into earnings over the contractual term of the facilities. The unamortized balance of such costs is included as a reduction to the senior secured credit facility balance. On January 31, 2024, the Company entered into a new credit facility (see note 6), the “2024 Facility” and incurred closing fees of $2,687. On November 26, 2025, the Company renewed the 2024 Facility, now the “Revised Facility” and incurred an additional $996 in closing fees. Contingencies and Commitments The Company may be subject to various legal proceedings, claims, and litigation, either asserted or unasserted that arise in the ordinary course of business. The Company records accruals for contingent losses when such losses are probable and reasonably estimable. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Legal fees are expensed as incurred. Financial Asset Transfers The Company accounts for transfers of financial assets under FASB ASC 860, Transfers and Servicing, utilizing a control oriented, financial components approach to financial asset transfer transactions whereby the Company:
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 15 2. Summary of Significant Accounting Policies (continued) Financial Asset Transfers (Continued) (1) recognizes the financial and servicing assets it controls and the liabilities it has incurred; (2) derecognizes financial assets when control has been surrendered; and (3) derecognizes liabilities once they are extinguished. Control is considered to have been surrendered only if: (i) the transferred assets have been isolated from the Company and its creditors, even in the event of bankruptcy or other receivership; (ii) the purchaser has the right to pledge or exchange the transferred assets, or, is a qualifying special purpose entity (as defined) and the holders of beneficial interests in that entity have the right to pledge or exchange those interests; and (iii) the Company does not maintain effective control over the transferred assets through an agreement which both entitles and obligates it to repurchase or redeem those assets prior to maturity, or through an agreement which both entitles or obligates it to repurchase or redeem those assets if they were not readily obtainable elsewhere. If any of these conditions are not met, the Company accounts for the transfer as a secured borrowing. Foreign Currencies Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the date of the consolidated balance sheets. Income and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process, which totaled ($3) and ($11) for the years ended December 31, 2025 and December 31, 2024, respectively, are recorded in other income in the consolidated statements of operations. At December 31, 2025 and December 31, 2024, the Company had cash, financing receivables and debt (if applicable) denominated in the Canadian dollars. Income Taxes The Company is a LLC and has elected to be taxed as a partnership. Accordingly, the Company is not subject to federal or state income taxes. Taxable income, losses and deductions flow through to the Company’s members. Fair Value Measurement Fair value is defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction at the measurement date. In determining fair value of financial instruments and intangibles, the Company uses various valuation approaches, which utilize certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk to the valuation technique. The inputs can be readily observable, market corroborated or generally unobservable internal inputs. The Company utilizes valuation techniques that rely on both observable and unobservable inputs. Leases The Company accounts for leases in accordance with ASC 842, Leases. Included in other assets and other liabilities on the consolidated balance sheets As of December 31, 2025 and December 31, 2024, are right of use assets and corresponding lease obligations, associated with the Company’s office spaces, of $2,293 and $2,633, respectively. The Company paid $401 and $393 for the years ended December 31, 2025 and December 31, 2024, respectively, for such leases. The Company’s aggregate scheduled remaining contractual payments under these leases are $409, $417, $425, $433, $442 and $336 for 2026, 2027, 2028, 2029, 2030 and thereafter, respectively.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 16 2. Summary of Significant Accounting Policies (continued) Goodwill Goodwill represents the excess of consideration paid for the Company over the fair value of the related assets acquired and liabilities assumed from the acquisition of the Company on July 31, 2017, as discussed in note 1. The Company assesses goodwill for impairment, annually or more frequently if events or changes in circumstances occur, by comparing the carrying value to its fair value. If the fair value is less than the carrying value, an impairment charge is recorded in that period. Goodwill recognized in business combinations is assigned to the reporting units that are expected to benefit from the combination as of the acquisition date. Goodwill is not amortized; rather goodwill is tested annually for impairment or more frequently upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the conclusion is supported that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment test. If the conclusion cannot be supported, or if the Company does not elect to do the qualitative assessment, then the Company will perform a quantitative assessment. If a quantitative goodwill impairment test is performed, the Company utilizes a combination of market and income valuation approaches. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the reporting unit is less than its carrying value. No impairment of goodwill resulted from the annual impairment assessment in 2025 or 2024. 3. Financing Receivables Net investment in financing receivables consists of the following at December 31, 2025 and December 31, 2024: 2025 2024 Finance lease receivables $ 151,700 $ 151,080 Guaranteed residuals 9,595 9,741 Unguaranteed residuals 8,851 9,864 Unearned income (24,125) (27,139) Deferred non-refundable fees collected (8) (29) Deferred initial direct costs paid 646 803 Finance lease receivables, gross 146,659 144,320 Allowance for credit losses on direct finance leases (2,371) (2,464) Total net investment in direct finance leases $ 144,288 $ 141,856 2025 2024 Secured loans, principal $ 156,445 $ 184,689 Accrued interest receivable 964 1,506 Total secured loans, gross 157,409 186,195 Deferred non-refundable fees collected (190) (767) Deferred initial direct costs paid 839 760 Secured loans, gross 158,058 186,188 Allowance for credit losses on secured loans (2,593 ) (3,105) Total secured loans, net $ 155,465 $ 183,083 Financing receivables (gross and net) is an aggregate of finance lease receivables and secured loans.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 17 3. Financing Receivables (continued) Aggregate scheduled payments, contractual maturities including guaranteed residuals and unguaranteed residuals by year on the fixed and floating rate secured loans and direct finance leases at December 31, 2025, are as follows: 2026 2027 2028 2029 2030 Thereafter Total Secured loans: Fixed Rate $ 61,170 $ 36,863 $ 20,481 $ 13,745 $ 3,408 $ 1,394 $ 137,061 Floating Rate 8,910 1,861 1,720 1,895 2,088 2,910 19,384 Direct Finance Leases 63,982 44,546 37,061 15,302 7,721 1,534 170,146 Total $ 134,062 $ 83,270 $ 59,262 $ 30,942 $ 13,217 $ 5,838 $ 326,591 4. Allowance for Credit Losses on Financing Receivables Allowance for credit losses on financing receivables was as follows for the years ended: 2025 Direct Finance Leases Secured Loans Total Balance at beginning of year $ 2,464 $ 3105 $ 5569 General (recovery)/provision for credit losses (993) (1,585) (2,578) Specific provision for credit losses 900 1,072 1,972 Charge offs ‑ ‑ ‑ Foreign currency translation adjustments ‑ 1 1 Balance at end of year $ 2,371 $ 2,593 $ 4,964
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 18 4. Allowance for Credit Losses on Financing Receivables (continued) 2024 Direct Finance Leases Secured Loans Total Balance at beginning of year 2,246 1,171 3,417 General provision for credit losses 218 1,938 2,156 Specific provision for credit losses ‑ ‑ ‑ Charge offs ‑ ‑ ‑ Foreign currency translation adjustments ‑ (4) (4) Balance at end of year 2,464 3,105 5,569 As of December 31, 2025 and December 31, 2024, the Company maintained a general allowance for credit losses of $2,992 and $5,569, respectively. As of December 31, 2025 and December 31, 2024, the Company maintained an allowance for credit losses on specifically identified accounts of $1,972 and $0 on financing receivables of $4,279 and $0, respectively. The Company has no material off balance sheet credit exposure as of December 31, 2025 and December 31, 2024, which would require additional allowances for credit losses. 5. Fixed Assets, net At December 31, 2025 and December 31, 2024, fixed assets, net consists of the following: 2025 2024 Leasehold improvements $ 153 $ 153 Furniture and fixtures 141 141 Software 63 33 Office equipment 39 39 Computer Equipment 26 44 Fixed assets, gross 422 410 Accumulated depreciation (232) (185) Fixed assets, net $ 190 $ 225 Depreciation and amortization expense related to fixed assets totaled $67 and $71 for the years ended December 31, 2025 and December 31, 2024, respectively. For the years ending 2026, 2027, 2028 and thereafter, the Company will recognize annual amortization expenses related to software of $13, $11, $9 and $7, respectively. 6. Senior Secured Credit Facility Senior secured credit facility consists of the following at December 31, 2025 and December 31, 2024: 2025 2024 2024 senior secured credit facility, principal $ 237,500 $ 260,974 Accrued interest payable 1,127 1,375 Unamortized deferred financing costs (1,944) (1,866) Total senior secured credit facility, net $ 236,683 $ 260,483 Fund I entered into a senior secured revolving credit facility (the “2024 Facility”) on January 31, 2024. The total commitment of the 2024 Facility is $350,000, in which the lender is the administrative agent with a commitment of $200,000, and a participating lender with a commitment of $150,000. The commitment termination date on the facility is January 2026. The facility was extended in November 2025 (the “Revised Facility”) for another three years. The facility has a revolving period for 2 years and an option to extend the termination date by another 12 months to November 2028.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 19 6. Senior Secured Credit Facility (continued) The 2024 Facility also consisted of two separate revolvers, one for U.S. dollars and one for Canadian dollars. At December 31, 2025, the amount drawn down on the 2024 Facility and the Revised Facility was USD $237,500 and CAD $0. The interest rate on the 2024 Facility is based on the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 1.76% (includes a credit adjustment spread of 0.11%) for all USD borrowings. For all CAD borrowings, the interest rate is based on Canadian Overnight Repo Rate Average (“CORRA”) plus an applicable margin of 2.05% (includes a credit adjustment spread of 0.3%). The interest rate on the Revised Facility is also based on SOFR with an applicable margin of 1.65% for all USD borrowings. For all CAD borrowings, the interest rate is based on CORRA plus an applicable margin of 1.75%. During the year ended December 31, 2025, Fund I fully repaid the outstanding balance of CAD 1,400 on its credit facility. Per the terms of the 2024 Facility, the Company has to pay an unused line fee, which ranges from 0.25% to 0.45%, depending on the utilization of the 2024 Facility. The unused line fee is 0.45% if the utilization is less than 33% of the overall facility commitment and is 0.25% if the utilization is greater than 66% of the overall facility commitment. No changes were made to the unused line fee in the Revised facility. All assets of Fund I are pledged as collateral under the Revised Facility. The Revised Facility requires Fund I and the Company to maintain certain periodic financial covenants surrounding capitalization, cash flow and default, delinquency and charge-off ratios. 7. Employee Compensation and Benefit Plans As of December 31, 2025, the Company employed personnel at its headquarters in Wilton, Connecticut and remotely throughout the United States. Employee compensation and benefits are comprised of base salaries, discretionary bonuses, health care benefits, employer 401(k) contributions and payroll taxes. As a part of their employment agreements, certain members of senior management are eligible for an annual bonus amount, which is calculated as a percentage of their annual salaries, based on certain financial performance metrics, as described in their employment agreements. Effective August 1, 2017, the Company formed a Long-Term Incentive Plan (“LTIP”) that provides for an annual bonus pool to certain members of senior management based on the Company achieving certain performance criteria. The Company sponsors a 401(k) plan, where the Company contributes a defined percentage of employees’ annual earnings up to the maximum annual contribution amount as determined by the Internal Revenue Service. 8. Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements (“ASC 820”), establishes a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect management’s market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, such as interest rates and foreign exchange rates that are observable at commonly quoted intervals. Financial assets utilizing Level 2 inputs include interest rate caps.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 20 8. Fair Value of Financial Instruments (continued) Level 3 – Unobservable inputs. As of December 31, 2025 and December 31, 2024, the Company measured its interest rate hedges at fair value. Total fair value of such derivative instruments As of December 31, 2025 and December 31, 2024, was ($10) and $1, respectively, which was classified as Level 2 in the fair value hierarchy by the Company. The fair value of interest rate caps and collars are measured using discounted cash flow calculations based on observable inputs from the relevant interest/exchange rate curves in effect at December 31, 2025, and 2024. ASC 820 also requires that the Company disclose estimated fair values for its financial instruments. No quoted market exists for the Company’s financial instruments. Therefore, fair value estimates are based on judgments, risk characteristics of various financial instruments and other factors. Changes in these assumptions could significantly affect the estimates. The Company estimates the carrying amounts of cash approximated its fair values as of December 31, 2025 and December 31, 2024. Since there is no liquid secondary market for the Company’s financing receivables, the Company estimates the fair value of its secured loans and net investment in direct finance leases by comparing the average yield of the portfolio to recent issuances of similar loans and leases. As of December 31, 2025 and December 31, 2024, the Company estimated the fair value of its financial liabilities based on the terms of its senior secured credit facility, (see note 6), and recent transactions of loans from affiliate. The carrying amount and estimated fair values of the Company’s financial instruments at December 31, 2025 and December 31, 2024, were as follows: 2025 2024 Fair Value Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and restricted cash Level 1 $ 5,821 $ 5,821 $ 6,324 $ 6,324 Net investment in direct finance leases Level 3 144,288 144,708 141,856 142,044 Secured loans, net Level 3 155,465 152,870 183,083 181,706 Total financing receivables, net of allowances 299,753 297,578 324,939 323,750 Financial liabilities: Senior secured credit facility, net Level 2 $ 236,683 $ 236,683 $ 260,483 $ 260,483 Loans from Affiliate Level 2 8,500 8,500 13,582 13,646 9. Concentration of Credit Risk Financing receivables subject the Company to credit risk. The Company monitors its portfolios by evaluating each of the customers’ financial condition and collateral. The Company’s maximum exposure to credit risk at December 31, 2025 and December 31, 2024, without considering the underlying collateral, is represented by the carrying value of the financing receivables in the consolidated balance sheets. The Company monitors its financing receivables for geographic concentrations.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 21 9. Concentration of Credit Risk (continued) The following table reflects such concentrations as of December 31, 2025 and December 31, 2024: Geographic Concentration 2025 2024 Texas $ 64,906 Texas $ 68,507 Massachusetts 30,800 Massachusetts 27,091 New York 22,996 Louisiana 26,864 Illinois 20,465 Connecticut 22,599 California 19,983 Illinois 20,943 Colorado 16,773 Pennsylvania 20,047 Pennsylvania 15,720 New York 19,951 Louisiana 13,738 Colorado 14,359 Utah 11,722 Georgia 11,725 Georgia 11,160 California 9,856 Other U.S. states / Canada 76,454 Other U.S. states / Canada 88,566 Total financing receivables, gross $ 304,717 Total financing receivables, gross $ 330,508 9. Concentration of Credit Risk (Continued) The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are implemented regarding the acceptability of types of collateral and valuation parameters. Typically, the Company obtains access to collateral either through direct ownership or by a first lien security interest. The Company also monitors its financing receivables for collateral concentrations. The following tables reflect such concentrations as of December 31, 2025 and December 31, 2024: Collateral Concentrations 2025 2024 Servers $ 33,328 Truck $ 31,973 Truck 29,976 Forklift 27,506 Food Processing Line 19,055 Crane 22,697 Crane 18,731 Tractor 21,356 Barge Rig 15,587 Barge Rig 17,883 Tractor 14,213 Package Sorting Equipment 16,708 Forklift 13,261 Excavator 16,295 All other 160,566 All other 176,090 Total financing receivables, gross $ 304,717 Total financing receivables, gross $ 330,508 At December 31, 2025 and December 31, 2024, the Company had financing receivables outstanding to a single largest customer that approximated 5% and 5%, respectively, of total financing receivables for each period.
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NEF Holdings, LLC and Subsidiaries Notes to the Consolidated Financial Statements (continued) (In Thousands) 22 10. Contingencies and Commitments As of December 31, 2025, the Company had a U.S. and a Canadian revolving financing arrangement with a total outstanding balance of $3,769 and CAD 545, respectively, which are included in financing receivables, net in the consolidated balance sheets. As of December 31, 2024, the Company had a U.S. and a Canadian revolving financing arrangement with a total outstanding balance of $3,149 and CAD 886, respectively, which are included in financing receivables, net in the consolidated balance sheets. The Company’s maximum commitments under the U.S. and Canadian revolvers were $4,000 and CAD 1,500, respectively, for both years ending December 31, 2025 and December 31, 2024. 11. Members’ Capital At December 31, 2025 and December 31, 2024, NEFCORP owns 100 Class A units and NEFPASS owns 100 Class B units, which represents the entire capital of the Company. 12. Subsequent Events The Company has evaluated subsequent events through February 10, 2026, the issuing date of the consolidated financial statements.
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Exhibit 99.3 KBH Topco, LLC Consolidated Financial Statements and Independent Auditor’s Report December 31, 2025 and 2024
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KBH TOPCO, LLC TABLE OF CONTENTS Page INDEPENDENT AUDITOR’S REPORT 1-2 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets 3 Consolidated Statements of Comprehensive Income 4 Consolidated Statements of Members’ Equity 5 Consolidated Statements of Cash Flows 6 Notes to the Consolidated Financial Statements 7-20
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INDEPENDENT AUDITOR’S REPORT To the Management of KBH Topco, LLC Opinion We have audited the accompanying consolidated financial statements of KBH Topco, LLC, which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, members’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of KBH Topco, LLC as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of KBH Topco, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events considered in the aggregate, that raise substantial doubt about KBH Topco, LLC’s ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued. Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.
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Page 2 In performing an audit in accordance with generally accepted auditing standards, we: o Exercise professional judgment and maintain professional skepticism throughout the audit. o Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. o Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of KBH Topco, LLC’s internal control. Accordingly, no such opinion is expressed. o Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements. o Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about KBH Topco, LLC’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Bannockburn, Illinois February 17, 2026
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Page 3 The accompanying notes are an integral part of these statements. KBH TOPCO,LLC CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024 ASSETS 2025 2024 Cash and cash equivalents $ 7,511,597 $ 14,460,109 Accounts receivable, net 20,382,777 26,624,553 Inventory, prepaid expenses, deposits and other assets 5,531,869 4,682,678 Notes receivable 9,426,524 _ Investment in sales-type and direct finance leases, net 239,704,274 267,902,285 Leased equipment 519,290,801 467,531,645 Equipment used in operations at cost, net 542,909 691,882 Right-of-use assets, real estate used in operations 2,502,829 2,814,360 Goodwill 135,364,402 135,364,402 $ 940,257,982 $ 920,071,914 LIABILITIES AND MEMBERS' EQUITY LIABILITIES Accounts payable and accrued expenses $ 18,015,804 $ 28,240,619 Leased equipment accounts payable 21,610,684 24,794,579 Customer deposits and advanced payments 19,245,780 8,273,765 Lease liabilities, real estate used in operations 2,605,153 2,921,202 Distributions payable 4,500,000 4,500,000 Deferred income tax liability 13,993,392 19,940,862 Secured borrowings 8,178,410 17,118,003 Notes payable - Recourse 166,741,580 170,132,612 Notes payable - Non-recourse 399,750,658 405,420,684 Senior secured debt - Related-party 142,500,000 100,500,000 797,141,461 781,842,326 MEMBERS' EQUITY 143,116,521 138,229,588 $ 940,257,982 $ 920,071,914
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Page 4 The accompanying notes are an integral part of these statements. KBH TOPCO, LLC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2025 AND 2024 2025 2024 REVENUE Leasing revenues $ 186,555,321 $ 199,629,956 Sales of equipment and software 162,664,334 130,492,202 Transfers of financial assets 5,140,452 4,967,700 Service revenues 1,532,450 1,656,169 Other revenues 5,123,827 4,575,376 361,016,384 341,321,403 DIRECT LEASING EXPENSES AND COST OF GOODS AND SERVICES SOLD Depreciation of equipment 62,478,602 71,043,354 Interest expense - Recourse debt 10,744,808 10,825,617 Interest expense - Secured borrowings 361,417 1,039,339 Interest expense - Non-recourse debt 25,181,865 29,561,037 Interest expense - Senior secured debt - related party 11,870,502 12,084,847 Cost of goods and services sold 178,845,589 151,449,935 289,482,783 276,004,129 GROSS MARGIN 71,533,601 65,317,274 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 52,188,057 45,998,718 INCOME BEFORE INCOME TAX PROVISION 19,345,544 19,318,556 INCOME TAX PROVISION (BENEFIT) (5,752,284) 7,361,281 NET INCOME 25,097,828 11,957,275 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 222,440 (418,907) COMPREHENSIVE INCOME $ 25,320,268 $ 11,538,368
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Page 5 The accompanying notes are an integral part of these statements. KBH TOPCO, LLC CONSOLIDATED STATEMENTS OF MEMBERS' EQUITY YEARS ENDED DECEMBER 31, 2025 AND 2024 Common Units Accumulated Other Units Amount Comprehensive Income (loss) Total BALANCE - JANUARY 1, 2024 84,000,0 00 $ 140,431,780 $ (240,560) $ 140,191,22 0 Net income - 11,957,275 - 11,957,275 Other comprehensive loss - - (418,907) (418,907) Distributions - (13,500,000) - (13,500,00 0) BALANCE - DECEMBER 31, 2024 84,000,0 00 138,889,055 (659,467) 138,229,58 8 Net income - 25,097,828 - 25,097,828 Other comprehensive income - - 222,440 222,440 Distributions - (20,433,335) - (20,433,33 5) BALANCE - DECEMBER 31, 2025 84,000,0 00 $ 143,553,548 $ (437,027) $ 143,116,52 1
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Page 6 The accompanying notes are an integral part of these statements. KBH TOPCO, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 25,097,828 $ 11,957,275 Adjustments to reconcile net income to net cash provided by operating activities: Sales-type and direct finance lease receipts 112,930,127 121,220,393 Earned income from sales-type and direct finance leases (39,291,563) (43,660,380) Depreciation and amortization 62,709,888 71,260,840 Non-cash lease expense, real estate used in operations 1,108,933 1,017,904 Provision for impairments and net loss on sale of equipment held for sale 16,452,577 25,095,044 Deferred income taxes (5,947,470) 7,321,366 Changes in operating assets and liabilities: Accounts receivable 6,241,776 10,752,808 Prepaid expenses, deposits and other assets (1,980,346) (1,369,639) Accounts payable and accrued expenses (10,224,815) (7,722,404) Customer deposits and advanced payments 10,972,015 3,679,311 Lease liabilities, real estate used in operations (1,113,451) (1,010,516) Net Cash Provided By Operating Activities 176,955,499 198,542,002 CASH FLOWS FROM INVESTING ACTIVITIES Investment in sales-type and direct finance leases (93,619,677) (176,427,238) Purchases of leased equipment (156,989,336) (123,027,777) Collection of note receivable payments 761,866 - Issuance of notes receivable (10,000,000) - Proceeds from sales of equipment and software 72,239,494 39,018,179 Purchases of equipment used in operations (84,812) (487,938) Net Cash Used In Investing Activities (187,692,465) (260,924,774) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on secured borrowings (8,939,593) (16,846,125) Proceeds from notes payable - Recourse 357,960,027 335,750,648 Principal payments on notes payable - Recourse (361,351,059) (316,858,918) Proceeds from notes payable - Non-recourse 155,126,802 202,844,849 Principal payments on notes payable - Non-recourse (160,796,828) (133,108,214) Proceeds from senior secured debt - Related-party 42,000,000 4,500,000 Distributions paid (20,433,335) (12,000,000) Net Cash Provided By Financing Activities 3,566,014 64,282,240 EFFECTS OF CURRENCY TRANSLATION 222,440 (418,907) NET CHANGE IN CASH (6,948,512) 1,480,561 CASH - BEGINNING OF YEAR 14,460,109 12,979,548 CASH - END OF YEAR $ 7,511,597 $ 14,460,109 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Interest paid $ 49,565,496 $ 52,082,661 SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITIES Leased equipment to off lease equipment $ (942,765) $ (6,068,711) Leased equipment transferred from investment in sales-type and direct finance leases $ 42,626,304 $ 11,989,577
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Page 7 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Financial Reporting. The accompanying consolidated financial statements include the accounts of KBH Topco, LLC, a Delaware limited liability company (“KBHT”) formed on October 29, 2020, and its wholly-owned subsidiaries (each organized as either a Nevada limited liability company or a Delaware limited liability company), collectively referred to as the “Company.” All significant intercompany accounts and transactions have been eliminated in consolidation. In November 2020, 87.50% of the Company was acquired by SLR Investment Corp. f/k/a Solar Capital Ltd. (“SLR”). As per the terms of the original purchase agreement, SLR acquired an additional 3.125% of the Company in both March 2025 and March 2024. As of December 31, 2025, SLR owns 93.75% of the Company. Description of Business. The Company leases, rents, sells, manages, and remarkets technology, industrial, healthcare, and other general equipment and software. Their customers are located throughout the United States and Canada. Management Estimates and Assumptions. The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Significant estimates and assumptions are used for, but not limited to: (1) estimated useful lives and residual values of equipment under operating, sales-type and direct finance leases; (2) classification of leases; (3) impairment of leased equipment; (4) impairment of goodwill; (5) revenue recognition; (6) allowance for credit losses; and (7) valuation of net deferred income tax assets or liabilities. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained, and as the operating environment changes. Cash and Cash Equivalents. The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are deposited at banking institutions which management believes have strong credit ratings. The Company regularly maintains cash balances that exceed the Federal Deposit Insurance Corporation regulatory insurance limits. Leases – Lessor. Leases not classified as a sales-type or direct finance lease are classified as operating leases. If a lease meets one or more of the following five criteria at lease commencement, the lease is classified as a sales-type lease: • The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; • The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise; • The lease term is for a major part of the remaining estimated economic life of the underlying asset; • The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset; or • The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease. When none of the sales-type lease criteria have been met, leases are classified as operating leases unless both of the following criteria are met, in which case the lessor shall classify the leases as direct finance leases: (1) the present value of the sum of the lease payments and any residual value guaranteed by the lessee and/or third party unrelated to the lessor equals or exceeds substantially all of the fair value of the underlying asset and (2) it is probable that the lessor will collect the lease payments plus any amount necessary to satisfy a residual value guarantee. (Continued)
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Page 8 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Leases – Lessor (Concluded). Residual Values – The estimated residual values of equipment at the end of the useful life are recorded at the inception of each lease. The estimated residual values vary as a percentage of the original equipment cost and depend upon the equipment type. Residual values for sales-type and direct finance leases are recorded at their net present value and the unearned income is amortized over the life of the lease using the effective interest method. The residual values for operating leases are included in the leased equipment’s net book value. The Company manages and evaluates residual value risk by performing periodic reviews and any impairment, other than temporary, is recorded in the period in which the impairment is determined. No upward revision of residual values is made subsequent to lease inception. Property taxes paid by the lessor which are reimbursed by the lessee are considered to be lessor costs of owning the asset and are recorded gross with revenue in other income and expense in selling, general and administrative expenses. The Company elected a lessor accounting policy to exclude sales taxes and other similar taxes on lease revenue-producing transactions collected from the lessee from revenue and expenses. Leases – Lessee. Operating lease right-of-use assets and operating lease liabilities are recognized at the present value of the future lease payments, generally for the base non-cancelable lease term, at the lease commencement date for each lease. The Company has elected a policy to use a risk-free rate as the discount rate used to determine the present value of the future lease payments because the interest rate implicit in most of the Company’s leases is not readily determinable. The Company’s lease agreements may contain lease and non-lease components. Variable lease payments are not included in the measurement of the right-of-use asset and lease liability, and they are recognized as lease expense is incurred. Leases may contain options to renew or terminate lease terms. The exercise of these lease options is generally at the Company’s sole discretion and included in the right-of-use asset and lease liability. The Company elected to apply the short-term lease measurement and recognition exemption to its leases where applicable. Variable lease payments predominantly relate to variable operating expenses including common area maintenance, property taxes and other operating expenses. The Company records the amortization of the right-of-use asset and the interest accretion on the lease liability for operating leases as a component of selling, general, and administrative expenses in the statement of comprehensive income. When lease agreements provide allowances for leasehold improvements, the Company assesses whether it is the owner of the leasehold improvements for accounting purposes. When the Company concludes that it is the owner, it capitalizes the leasehold improvement assets and recognizes the related amortization expense on a straight-line basis over the lesser of the related lease term, including renewals that are reasonably assured of being exercised, or the estimated useful life of the asset. Additionally, the Company recognizes the amounts of allowances to be received from the lessor as a reduction of the lease liability and the associated right-of-use asset. When the Company concludes that it is not the owner, the payments that the Company makes towards the leasehold improvements are accounted for as a component of the lease payments. Revenue Recognition. The Company recognizes revenue in accordance with the following accounting standards: (1) FASB ASC 842, Leases, (2) FASB ASC 860, Transfers and Servicing, and (3) FASB ASC 606, Revenue from Contracts with Customers. Revenue from Leasing Transactions under FASB ASC 842 – The Company accounts for certain leasing revenues in accordance with FASB ASC 842. The accounting for revenue is different depending on the type of lease. (Continued)
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Page 9 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) For sales-type and direct finance leases, the Company records the net investment in leases, which consists of the sum of the minimum lease payments, initial direct costs, and unguaranteed residual value for sales-type leases and guaranteed residual value for direct finance leases (gross investment) less the unearned income. Revenue for sales- type and direct finance leases is recognized as the unearned income is amortized over the life of the lease using the effective interest method. For operating leases, rental amounts are accrued on a straight-line basis over the lease term and are recognized as leasing revenue. Revenue Recognition (Continued). Leasing revenues consist of rentals due under operating leases and the amortization of unearned income on sales-type and direct finance leases. Equipment under operating leases is recorded at cost and depreciated on a straight-line basis over the useful life. Revenue from the Transfer of Financial Assets under FASB ASC 860 - The Company enters into arrangements to transfer the contractual payments due under sales-type and direct finance leases, which are accounted for in accordance with FASB ASC 860. These transfers are accounted for as either a pledge of collateral in a secured borrowing or a sale. For transfers accounted for as a secured borrowing, the corresponding investments serve as collateral for recourse and non-recourse notes payable. For transfers accounted for as sales, the Company derecognizes the carrying value of the asset transferred plus any liability and recognizes a net gain or loss on the sale, which are presented as transfers of financial assets in the consolidated statements of comprehensive income. Revenue from Sales of Equipment, Software and Services under FASB ASC 606 - Under FASB ASC 606, revenue is recognized when the Company satisfies its performance obligations, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. Contracts with customers may include multiple promises that are distinct performance obligations. For such arrangements, the Company allocates the transaction price to each performance obligation based on its relative standalone selling price. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such goods or services. After completion of the performance obligation, the Company has an unconditional right to consideration as outlined in the contract. Service Revenues - The Company maintains service contracts for maintenance and repair services to customers for the customer owned equipment. The Company’s arrangement is typically a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer. The Company typically recognizes sales from these services on a straight-line basis over the period services are provided. Payments are typically due within 30 days after an invoice is sent to the customer. Invoices for services are typically sent in advance. Equipment and Software Sales - The Company sells equipment and software to both current lessees and third parties for leased equipment, brokerage of equipment, and lease transaction sales. Sales revenue is recorded at the amount of gross consideration received. Revenue is recognized at a point in time when the Company satisfies its performance obligations. Payments are typically due upon receipt of the invoice. Invoices for equipment and software sales are typically sent in advance. The Company has adopted certain practical expedients under FASB ASC 606 with significant items disclosed herein. The Company has elected to apply the portfolio approach practical expedient allowed under FASB ASC 606 to evaluate contracts with customers that share the same revenue recognition patterns as the result of evaluating them as a group will have substantially the same result as evaluating them individually. (Continued)
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Page 10 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition (Concluded). Disaggregation of Revenue - The table below summarizes the Company’s revenues as presented in the consolidated statement of comprehensive income for the year ended December 31, 2025 by revenue type and by the applicable accounting standard: Year Ended December 31, 2025 FASB ASC 842 FASB ASC 860 FASB ASC 606 Total Operating lease revenues $ 147,263,758 $ - $ - $ 147,263,758 Sales-type and direct finance lease revenues 39,291,563 - - 39,291,563 Sales of equipment and software - - 162,664,334 162,664,334 Transfers of financial assets - 5,140,452 - 5,140,452 Service revenues - - 1,532,450 1,532,450 Other revenues 4,559,770 - 564,057 5,123,827 Total revenue $ 191,115,091 $ 5,140,452 $ 164,760,841 $ 361,016,384 Total revenue subject to FASB ASC 606 recognized at a point in time and over time was $163,228,391 and $1,532,450, respectively, for the year ended December 31, 2025. The table below summarizes the Company’s revenues as presented in the consolidated statement of comprehensive income for the year ended December 31, 2024 by revenue type and by the applicable accounting standard: Year Ended December 31, 2024 FASB ASC 842 FASB ASC 860 FASB ASC 606 Total Operating lease revenues $ 155,969,576 $ - $ - $ 155,969,576 Sales-type and direct finance lease revenues 43,660,380 - - 43,660,380 Sales of equipment and software - - 130,492,202 130,492,202 Transfers of financial assets - 4,967,700 - 4,967,700 Service revenues - - 1,656,169 1,656,169 Other revenues 3,977,021 - 598,355 4,575,376 Total revenue $ 203,606,977 $ 4,967,700 $ 132,746,726 $ 341,321,403 Total revenue subject to FASB ASC 606 recognized at a point in time and over time was $131,090,557 and $1,656,169, respectively, for the year ended December 31, 2024. Accounts Receivable. Accounts receivable represent customer obligations, which include base monthly, quarterly, and annual rentals due under the terms of each respective customer’s lease and equipment sales. The carrying amount of accounts receivable is reduced by an allowance for credit losses. Gross accounts receivable were $20,672,484, $27,067,325 and $37,812,925 as of December 31, 2025, December 31, 2024 and January 1, 2024, respectively. (Continued)
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Page 11 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Allowance for Credit Losses. The Company’s allowance for credit losses represents the estimate of expected credit losses related to accounts receivable, notes receivable, and investment in sales-type and direct finance leases. The Company pools its accounts receivable, notes receivables, and investment in sales-type and direct finance leases based on similar risk characteristics, such as geographic location, business channel, and other account data. To estimate the allowance for credit losses, the Company leverages information on historical losses, asset-specific risk characteristics, current conditions, overall credit quality of the lessees, and reasonable and supportable forecasts of future conditions. Account balances are written off against the allowance when the Company deems the amount is uncollectible. The allowance for credit losses related to accounts receivable was $289,707, $442,772 and $435,564 as of December 31, 2025, December 31, 2024 and January 1, 2024, respectively. There was no allowance for credit losses related to notes receivable and investment in sales-type and direct finance leases. Depreciation and Amortization. Depreciation provisions for revenue-producing equipment are computed using the straight-line method over the related useful life of the equipment, after giving effect to an estimated residual value. The estimated useful life of equipment under operating leases is 120 months for industrial equipment, 96 months for healthcare equipment and 72 months for technology equipment. The estimated residual value of equipment under operating leases is 10% for industrial equipment, 3% for technology equipment and 10% for healthcare equipment. The estimated useful lives and residual values determined by the Company may have a material effect on the gain or loss of equipment held for sale in the year of disposition due to the uncertainty of future market conditions. For other equipment used in operations, depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, ranging from approximately three to eight years and was $231,286 and $217,486 for the years ended December 31, 2025 and 2024, respectively, and included in selling, general and administrative expenses. Accumulated depreciation was $890,832 and $721,640 as of December 31, 2025 or 2024, respectively. Goodwill. Goodwill represents the excess of the consideration paid over the estimated fair value of the net assets acquired in a business combination. The Company performs an annual impairment test for goodwill at the entity level. There were no impairment charges or triggering events for the years ended December 31, 2025 or 2024. Leased Equipment. Leased equipment consists of equipment under operating lease arrangements and equipment purchased and designated for lease prior to commencement. Foreign Operations. The functional currencies for the consolidated foreign operations are the Canadian dollar and Euro. The translation of the applicable foreign currencies into U.S. dollars is performed for monetary balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted average exchange rate during the period. Nonmonetary balance sheet accounts and related revenue, expense, gain and loss accounts are remeasured using historical rates to produce the same results as if the items had been initially recorded in U.S. dollars. The gains or losses resulting from such translation of the Canadian dollar and Euro are included as a component of accumulated other comprehensive income in members’ equity. Assets located outside the United States and subject to foreign currency denominated transactions totaled $15,069,210 and $13,135,782 as of December 31, 2025 and 2024, respectively. Income Taxes. The Company was formed as a limited liability company and elected to be taxed as a C-Corporation. Deferred income taxes are provided using the liability method whereby deferred income tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred income tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates at the date of enactment. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred income tax assets and liabilities. (Continued)
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Page 12 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes. (Concluded) KBHT’s wholly-owned subsidiaries are disregarded entities for income tax purposes. Their operations are combined with the operations of KBHT and reported together in one income tax return. Fair Value Measurements. Fair value accounting guidance defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements for both financial and non-financial assets. It also provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2. Inputs to the valuation methodology include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Certain assets are measured at fair value on a nonrecurring basis subsequent to initial recognition. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only under certain circumstances, as GAAP does not permit the recording of unrealized appreciation of equipment held for sale and leased equipment. In certain circumstances, these assets were written down to estimated fair value when it is determined that net realizable value is below cost. Adjustments to write down certain equipment held for sale and leased equipment to their net realizable value totaled approximately $3,243,000 and $11,155,000 for the years ended December 31, 2025 and 2024, respectively, and are included within cost of goods and services sold on the consolidated statements of comprehensive income. Equipment held for sale totaled approximately $2,400,000 and $1,200,000 as December 31, 2025 and 2024, respectively, and is included within inventory, prepaid expenses, deposits and other assets on the consolidated balance sheets. Recent Accounting Pronouncements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), to enhance disclosures related to income taxes, including specific thresholds for inclusion within the tabular disclosure of income tax rate reconciliation and specified information about income taxes paid. This update is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. Management is currently evaluating this standard.
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Page 13 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – NOTES RECEIVABLE The Company loaned $10,000,000 to a borrower to finance the purchase of equipment. Interest rate range from 13% to 15%. The Company is secured by a first-priority interest in the borrower’s presently existing, and hereafter acquired collateral, included the financed equipment. Approximate future minimum payments to be received under the terms of the notes receivable were as follows as of December 31, 2025: Year Ending December 31 Amount 2026 $ 4,562,000 2027 4,070,000 2028 1,726,000 2030 1,145,000 Total minimum payments 11,503,000 Less: interest income 2,076,000 Notes receivable, at present value $ 9,427,000 NOTE 3 – INVESTMENT IN SALES-TYPE AND DIRECT FINANCE LEASES, NET The investment in sales-type and direct finance leases consisted of the following as of December 31: 2025 2024 Minimum lease payments $ 221,742,794 $ 257,675,874 Estimated residual value 62,564,259 77,031,450 Subtotal 284,307,053 334,707,324 Less: Unearned lease income 44,602,779 66,805,039 Investment in sales-type and direct finance leases, net $ 239,704,274 $ 267,902,285 As of December 31, 2025 and 2024, there were $10,814,917 and $16,367,737 of investment in sales-type and direct finance leases in leased equipment accounts payable, respectively. NOTE 4 – LEASED EQUIPMENT Approximate leased equipment consisted of the following as of December 31: 2025 2024 Industrial $ 477,025,000 $ 438,018,000 Technology 174,254,000 163,826,000 Healthcare 70,958,000 70,872,000 722,237,000 672,716,000 Less: Accumulated depreciation 202,946,000 205,185,000 $ 519,291,000 $ 467,531,000 As of December 31, 2025 and 2024, there was $10,795,767 and $8,426,842 of leased equipment in leased equipment accounts payable, respectively.
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Page 14 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 – FUTURE MINIMUM LEASE PAYMENTS TO BE RECEIVED Approximate future minimum lease payments to be received under the terms of the non-cancelable operating, sales-type and direct finance leases as of December 31, 2025 were as follows: Year Ending December 31 Sales-type and direct finance Operating Total 2026 $ 98,456,000 $ 109,256,000 $ 207,712,000 2027 52,073,000 85,937,000 138,010,000 2028 36,025,000 60,191,000 96,216,000 2029 19,552,000 32,887,000 52,439,000 2030 9,877,000 9,852,000 19,729,000 Thereafter 5,760,000 689,000 6,449,000 Total minimum lease payments 221,743,000 $ 298,812,000 $ 520,555,000 Less: Unearned Income 44,603,000 Sales-type and direct finance lease receivable, at present value at lease implicit rate $ 177,140,000 NOTE 6 – DEBT Secured Borrowings. The Company enters into arrangements to transfer the contractual payments due under sales- type, direct finance and operating leases. Due to the rights retained on certain lease participations sold, the Company is deemed to have retained effective control over these leases and therefore these transfers are accounted for as secured borrowings. As of December 31, 2025, the Company has secured borrowing agreements totaling $8,178,410 of which $125,841 was recourse and $8,052,569 was non-recourse. As of December 31, 2024, secured borrowing agreements totaled $17,118,003 of which $951,673 was recourse and $16,166,330 was non-recourse. These secured borrowing agreements have various maturity dates through 2026 and interest rates ranging from 3.20% and 5.28%. The investment in sales-type and direct finance leases and the equipment under operating leases pledged under these secured borrowing agreements were $109,593 and $25,001,715, respectively, as of December 31, 2025 and $287,035 and $37,117,695, respectively, as of December 31, 2024. Principal payments on secured borrowings as of December 31, 2025 were due as follows: Year Ending December 31 Amount 2026 $ 8,178,410 $ 8,178,410 Notes Payable - Recourse. The Company has recourse borrowing arrangements with various financial institutions with $166,741,580 and $170,132,612 of recourse debt outstanding as of December 31, 2025 and 2024, respectively. Various rate structures for each line pricing exist, based upon either the U.S. prime rate (6.75% at December 31, 2025, “Prime”) plus a spread, or based upon 30-day Secured Overnight Financing Rate (“SOFR”) plus a spread, or the like term swap rate for the investment period, plus 2.50% to 4.50%. Borrowings are collateralized by either a first lien on the equipment and assignment of rent or a second lien on the equipment representing the leased equipment’s residual values. (Continued)
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Page 15 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 – DEBT (Continued) Notes Payable – Recourse (Continued). Under a $30,000,000 facility, maturing in August 2027, principal payments are determined by the maturities of the underlying equipment leases, of which $22,300,487 and $24,830,729 was outstanding as of December 31, 2025 and 2024, respectively. Balances are priced at Prime plus 1.50%, with a floor of 5.00%. Outstanding balances as of December 31, 2025 were due between January 2026 and November 2030. The debt agreement includes covenants for minimum tangible net worth and leverage. Additionally, there is a $5,000,000 guidance facility available for lease equipment residual values, where the financial institution has been assigned rents under notes payable non-recourse, of which $1,985,040 and $551,903 was outstanding as of December 31, 2025 and 2024, respectively. Under a $65,000,000 facility maturing in October 2026, secured by a first lien on the equipment, with principal payments due based on the following schedule: the first two months of borrowing are interest only, after which 1.00% of the original principal is due on the first of each month, and then at six months from the date of the individual borrowing for the purchase of the equipment, the remaining principal balance is due. On this facility, $50,222,435 and $57,747,216 was outstanding as of December 31, 2025 and 2024, respectively. The debt agreement includes covenants for minimum tangible net worth. Under a $50,000,000 facility maturing in November 2027, principal payments are due based on the following schedule: the first two months of borrowing are interest only, after which 1.00% of the original principal is due on the first of each month, and then at six months from the date of the individual borrowing for the purchase of the equipment, the remaining principal balance is due. On this facility, $45,217,041 and $36,223,469 was outstanding as of December 31, 2025 and 2024, respectively. Additionally, $10,000,000 of this facility is able to be used for borrowings on a term basis, secured by a second lien on the equipment representing the leased equipment’s residual values, of which $3,707,083 and $4,260,951 was outstanding as of December 31, 2025 and 2024, respectively. Up to $2,000,000 of the $10,000,000 is able to be used for Canadian Advances of which $352,303 and $-0- was outstanding as of December 31, 2025 and 2024, respectively. The debt agreement includes covenants for minimum tangible net worth. Under an additional facility, borrowings are collateralized by either a first lien on the equipment and assignment of rents or a second lien on the equipment representing the leased equipment’s residual values subject to a cap on residuals of $8,000,000. On this facility, $1,306,671 and $1,554,456 was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due between January 2026 and June 2028. Under an additional facility, borrowings are collateralized by a combination of first lien on the equipment and assignment of rents and a second lien on the equipment representing the leased equipment’s residual values. On this facility, $100,866 and $327,532 was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due between January 2026 and May 2027. Under a $10,000,000 facility, subject to annual review, borrowings are collateralized by a combination of first lien on the equipment and assignment of rents and a second lien on the equipment representing the leased equipment’s residual values. Rates are determined at the time of discounting based on the underlying lease term. On this facility, $2,420,568 and $2,670,753 was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due between January 2026 and May 2028. Under a $15,000,000 facility, subject to annual review, borrowings are collateralized by a combination of first lien on the equipment and assignment of rents and a second lien on the equipment representing the leased equipment’s residual values. On this facility, $6,604,662 and $6,968,779 was outstanding as of December 31, 2025 and 2024, respectively. Additionally, $9,000,000 of this facility is able to be used for borrowings collateralized by the Company’s equipment leases with a subsidiary, secured by both the rental stream and equipment residual values. On this portion of the facility, $3,523,554 and $3,958,712 was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due between January 2026 and September 2030. The facility includes covenants for minimum net worth. (Continued)
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Page 16 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 – DEBT (Continued) Notes Payable - Recourse (Concluded). Under a $4,000,000 facility, subject to annual review, borrowings are collateralized by a combination of first lien on the equipment and assignment of rents and a second lien on the equipment representing the leased equipment’s residual values. On this facility, $3,103,664 and $2,707,138 was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due between January 2026 and July 2032. Under an additional facility, the Company has borrowed either funding against lease stream payments or equity residual in equipment. The periodic payments are determined by the underlying equipment lease streams and/or residual values of equipment, with both interest rate and principal payments being determined at the time of line draw by the financial institution. Rates on borrowings from this facility range from 200 to 450 basis points over the like term swap rate at the time of borrowing, with $1,271,938 and $3,048,517 outstanding as of December 31, 2025 and 2024, respectively. Borrowings for equity residuals are priced at 2.00% over the corresponding non-recourse stream rate for the underlying transaction. Outstanding balances as of December 31, 2025 were due between January 2026 and March 2028. There are additional loans with this financial institution of which $-0- and $281,580 was outstanding as of December 31, 2025 and 2024, respectively. Under a $1,500,000 guidance facility, subject to annual review, $310,767 and $190,321 was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due in April 2029. Under a $5,000,000 facility, subject to annual review, $713,689 and $-0- was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due in October 2030. Under a $2,000,000 guidance facility, subject to annual review, $1,608,982 and $-0- was outstanding as of December 31, 2025 and 2024, respectively. Outstanding balances as of December 31, 2025 were due in January 2031. The Company has a borrowing arrangement collateralized by a first lien on the equipment and assignment of rents on a pool of lease transactions totaling $119,260,051 and $135,219,647 outstanding as of December 31, 2025 and 2024, respectively, at a borrowing rate ranging from 3.25% to 7.13%. Of the total transactions, $18,320,166 and $18,467,801 as of December 31, 2025 and 2024, respectively, is secured on a recourse basis for a portion of the equipment’s residual values. The recourse portion of this transaction will amortize with cash flow from residual values. Management estimates that this obligation will fully amortize by March 2031. An additional $13,000,000 was provided on a recourse basis at 5.52% of which $3,671,664 and $6,342,755 was outstanding as of December 31, 2025 and 2024, respectively. Principal payments on recourse notes payable as of December 31, 2025 were due as follows: Year Ending December 31 Amount 2026 $ 117,238,131 2027 12,702,303 2028 16,020,391 2029 12,211,747 2030 7,729,215 Thereafter 839,793 $ 166,741,580 (Continued)
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Page 17 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 – DEBT (Continued) Notes Payable - Non-Recourse. Non-recourse notes payable are collateralized by the assignment of rent and the equipment value under lease. The financial institutions and a related party have a first lien on the underlying leased equipment with no further recourse against the Company in the event of default by lessee. Interest rates range from 2.0% to 19.0%. Under these arrangements, each lease is financed under a separate borrowing. Non-recourse debt and related interest expense is paid by funds from assigned committed term lease payments with various financial institutions. The outstanding balance was $399,750,658 and $405,420,684 as of December 31, 2025 and 2024, respectively, of which $34,301,649 and $18,083,413 with an average interest rate of 11.00% was due to a related party under common control as of December 31, 2025 and 2024, respectively. Principal payments on non-recourse notes payable as of December 31, 2025 were due as follows: Year Ending December 31 Amount 2026 $ 144,926,491 2027 111,652,017 2028 77,679,506 2029 41,834,533 2030 16,735,555 Thereafter 6,922,556 $ 399,750,658 Senior Secured Debt - Related-Party. The Company has a recourse senior secured debt facility with SLR. The facility was amended in 2025 to allow the Company to borrow up to $142,500,000. The interest rate on the facility is SOFR plus 7.00%. Interest payments are due quarterly until maturity in December 2027. The debt is collateralized by a subordinated lien on the Company’s leased assets and the Company’s outstanding rollover equity interests. The debt agreement includes covenants for minimum tangible net worth and leverage. The outstanding balance including accrued interest was $142,500,000 and $100,500,000 as of December 31, 2025 and 2024, respectively. Related-party interest expense was approximately $11,871,000 and $12,085,000 for the years ended December 31, 2025 and 2024, respectively. NOTE 7 – MEMBERS’ EQUITY All members of the Company have the same rights, preferences, and privileges. Profits, losses, and distributions are allocated in accordance with the Operating Agreement. The Company has two classes of units: Common units and Preferred units. There were no Preferred units issued and outstanding as of December 31, 2025 and 2024. NOTE 8 – OPERATING LEASES The Company leases various facilities under the terms of non-cancelable operating leases which expire from February 2026 through April 2030 which call for monthly rental payments ranging from approximately $2,000 to $34,000 per month. The Company does not believe it will exercise the options to extend the leases. The office leases generally require the Company to pay taxes, insurance, utilities, and maintenance costs in addition to base rent. (Continued)
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Page 18 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 8 – OPERATING LEASES (Continued) The components of lease expense were as follows for the years ended December 31: 2025 2024 Fixed operating lease cost $ 1,211,613 $ 1,132,135 Variable and short-term lease costs 280,606 388,328 Total lease expense $ 1,492,219 $ 1,520,463 Other information related to lease was as follows for the years ended December 31: 2025 2024 Weighted-average remaining lease term (in years) 2.57 3.12 Weighted-average discount rate 3.48% 3.34% Cash flows related to leases were as follows for the years ended December 31: 2025 2024 Cash flows from operating activities: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,216,131 $ 1,124,746 Supplemental disclosure of cash flow information: Right-of-use assets obtained in exchange for operating lease obligations $ 797,402 $ - Approximate future maturities of lease liabilities under non-cancelable operating leases were as follows as of December 31, 2025: Year Ending December 31 Amount 2026 $ 1,156,000 2027 1,041,000 2028 367,000 2029 129,000 2030 35,000 2,728,000 Less: Imputed interest 123,000 $ 2,605,000
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Page 19 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – INCOME TAXES A reconciliation of the statutory federal income tax rate and effective rate of the provision for income taxes is as follows: December 31, 2025 December 31, 2024 Federal statutory rate 21.00% 21.00% State income taxes, net of federal benefit (2.72) 1.07 Deferred true up (48.85) 14.25 Permanent items 0.30 0.24 Other 0.54 - Effective tax rate (29.73) % 36.56% The income tax (benefit) provision consisted of the following components for the years ended December 31: 2025 2024 Deferred $ (5,947,470) $ 7,321,366 Current 195,186 39,915 $ (5,752,284) $ 7,361,281 The Company’s deferred income tax assets and liabilities consisted of the following components as of December 31: 2025 2024 Deferred income tax asset (liability) Depreciation and amortization $ (125,125,166) $ (131,244,171) Intangible assets 20,610,374 37,261,670 Other 97,028 117,939 Deferred revenue (55,192,653) - Interest expense carryforward 17,927,038 23,511,683 Net operating loss 127,689,987 50,412,017 Net deferred income tax liability $ (13,993,392 ) $ (19,940,862) The Company has a pre-tax net operating loss (“NOL”) carryforward of $524,608,926 for Federal tax purposes as of December 31, 2025. The Company has apportioned after-tax state NOLs of up to $287,288,353 as of December 31, 2025 with the earliest expiration date in 2040. In the normal course of business, the Company is subject to examinations by federal, foreign, and state and local jurisdictions, where applicable. There are currently no pending tax examinations. The Company’s tax years are currently open under statute are from 2022 to the present.
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Page 20 KBH TOPCO, LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 10 – MAJOR CUSTOMERS One customer of which is a large corporate company comprised of approximately 13% of revenue for the year ended December 31, 2025. One customer of which is an investment grade rated comprised approximately 32% of accounts receivable as of December 31, 2025. One large corporate customer is the lessee under sales-type, direct finance and operating leases of approximately 15% of total assets as of December 31, 2025. Two customers of which are either investment grade rated or a large corporate company comprised of approximately 25% of revenue for the year ended December 31, 2024. One large corporate customer is the lessee under sales-type, direct finance and operating leases of approximately 12% of total assets as of December 31, 2024. One customer has a subsidiary that is also a co-lessee that is undergoing bankruptcy proceedings, and as a result, is in default for breach of a master lease agreement and numerous equipment subleases. There was approximately $25,517,000 and $50,255,000 of investment in sales-type and direct finance leases, net and leased equipment relating to leases with the subsidiary as of December 31, 2025 and December 31, 2024, respectively. There was approximately $21,000,000 and $10,300,000 of non-recourse and recourse debt outstanding related to these leases as of December 31, 2025 and there was approximately $55,329,000 and $8,910,000 of non-recourse and recourse debt outstanding related to these leases as of December 31, 2024. Management believes the Company will be successful in recovering the full amounts due from the customer under these leases. NOTE 11 – LITIGATION From time to time, the Company is subject to litigation arising in the ordinary course of business. It is the opinion of the Company’s management that any claims pending are either covered by insurance or that there is no material exposure to the Company in connection with any proceedings. NOTE 12 – SUBSEQUENT EVENTS Management has evaluated all known subsequent events from December 31, 2025 through February 17, 2025, the date the accompanying consolidated financial statements were available to be issued and is not aware of any material subsequent events occurring during this period.
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Exhibit 99.4 Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Consolidated Financial Statements Years Ended December 31, 2025 and 2024
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Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Table of Contents Years Ended December 31, 2025 and 2024 Page Independent Auditors’ Report 1 Consolidated Financial Statements Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Members’ Equity 5 Consolidated Statements of Cash Flows 6 Notes to Consolidated Financial Statements 7
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Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 1 Independent Auditors' Report To the Board of Managers of Gemino Healthcare Finance, LLC Opinion We have audited the consolidated financial statements of Gemino Healthcare Finance, LLC and Subsidiary d/b/a SLR Healthcare ABL (the Company), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of operations, changes in members' equity and cash flows for the years then ended, and the related notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
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2 Auditors' Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit. Philadelphia, Pennsylvania February 12, 2026
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See notes to consolidated financial statements 3 Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Consolidated Balance Sheets December 31, 2025 and 2024 2025 2024 Assets Assets Cash and cash equivalents $ 231,124 $ 74,128 Loans receivable, net 157,025,355 130,206,967 Accrued interest receivable 1,768,350 1,879,344 Goodwill 5,663,531 5,663,531 Furniture and equipment, net 54,601 49,342 Other assets 636,904 620,408 Total assets $ 165,379,865 $ 138,493,720 Liabilities and Members' Equity Liabilities Credit facility, net $ 126,938,898 $ 98,294,491 Loan from affiliate 1,800,000 4,000,000 Accounts payable and accrued expenses 5,115,616 4,802,079 Dividend payable 2,215,000 1,500,000 Total liabilities 136,069,514 108,596,570 Members' Equity Units, $1,000 par value, issued and outstanding 35,754 and 35,259, respectively 33,354,401 32,808,874 Accumulated deficit (4,044,050) (2,911,724) Total members' equity 29,310,351 29,897,150 Total liabilities and members' equity $ 165,379,865 $ 138,493,720
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See notes to consolidated financial statements 4 Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Consolidated Statements of Operations Years Ended December 31, 2025 and 2024 2025 2024 Interest income: Interest income $ 18,120,749 $ 15,622,066 Interest expense 9,503,407 8,386,456 Net interest income 8,617,342 7,235,610 Provision for credit losses 138,962 102,125 Net interest income after provision for credit losses 8,478,380 7,133,485 Other income 5,425,691 4,347,599 Operating expenses: Compensation and benefits 5,664,178 4,459,792 Depreciation and amortization 20,865 23,080 General and administrative 1,353,203 1,409,431 Total operating expenses 7,038,246 5,892,303 Net income $ 6,865,825 $ 5,588,781
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See notes to consolidated financial statements 5 Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Consolidated Statements of Changes in Members' Equity Years Ended December 31, 2025 and 2024 Balance at December 31, 2023 $ 29,808,369 Dividends declared (5,500,000) Net income 5,588,781 Balance at December 31, 2024 29,897,150 Additional capital contributions 545,527 Dividends declared (7,998,151) Net income 6,865,825 Balance at December 31, 2025 $ 29,310,351
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See notes to consolidated financial statements 6 Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Consolidated Statements of Cash Flows Years Ended December 31, 2025 and 2024 2025 2024 Cash Flows from Operating Activities Net income $ 6,865,825 $ 5,588,781 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 20,865 23,080 Amortization of deferred origination fees and costs (912,951) (528,677) Amortization of debt issuance costs 1,044,407 813,232 Provision for credit losses 138,962 102,125 Changes in assets and liabilities: Decrease (increase) in accrued interest receivable 110,994 (422,425) Increase in other assets (16,496) (514,756) Increase in deferred origination fees and costs 864,057 606,696 Increase in accounts payable and accrued expenses 859,064 643,652 Net cash provided by operating activities 8,974,727 6,311,708 Cash Flows from Investing Activities Increase in loans receivable (26,908,456) (19,122,855) Purchase of furniture and equipment (26,124) (37,780) Net cash used in investing activities (26,934,580) (19,160,635) Cash Flows from Financing Activities Proceeds from credit facility 27,600,000 14,900,000 (Repayment of) proceeds from loan from affiliate (2,200,000) 4,000,000 Debt issuance costs - (520,304) Dividends paid (7,283,151) (5,495,058) Net cash provided by financing activities 18,116,849 12,884,638 Net increase in cash and cash equivalents 156,996 35,711 Cash and cash equivalents, beginning of the year 74,128 38,417 Cash and cash equivalents, end of the year $ 231,124 $ 74,128 Supplemental Disclosure of Cash Flow Information Interest paid $ 8,369,271 $ 7,582,667 Supplemental Disclosure of Non-Cash Operating and Financing Information Issuance of Units through long-term incentive plan accrual $ 545,527 $ -
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7 Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 1. Description of Business Gemino Healthcare Finance, LLC is a Delaware limited liability company formed in December 2006 and operates under the name of SLR Healthcare ABL (“SLR Healthcare”) after filing a d/b/a in February 2021. SLR Healthcare is a commercial finance company that originates, underwrites and manages primarily secured, asset-based loans for small and mid-sized companies operating across the U.S. in the healthcare industry. SLR Healthcare’s loans are primarily in the form of revolving lines of credit, secured by accounts receivable of the borrowers. The accounts receivable serving as collateral are primarily third party obligations from government payers, such as Medicare or Medicaid, and commercial insurers. In certain cases, SLR Healthcare may provide senior term loan financing, including real estate financing to qualified borrowers in addition to a revolving line of credit. Senior term loans, including real estate loans are typically secured by accounts receivable and all other assets of the borrowers, such as inventory, equipment and real estate. Gemino Healthcare Funding, LLC (“Gemino Funding”) is a wholly-owned special purpose limited liability company that purchases and holds certain eligible loans and related property from SLR Healthcare (collectively, the “Company”). On September 30, 2013, SLR Senior Investment Corp. formerly known as Solar Senior Capital Ltd. (“SLR Senior”), a Maryland corporation, acquired a controlling interest in SLR Healthcare. On April 1, 2022, SLR Senior merged with the surviving affiliated entity, SLR Investment Corp. (“SLR Investment”), a Maryland corporation. The remaining interest of SLR Healthcare is held by the management team of SLR Healthcare. 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of SLR Healthcare and Gemino Funding. All significant intercompany balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and to report amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates. The allowance for credit losses represents an estimate that is particularly susceptible to material change. Cash and Cash Equivalents Cash and cash equivalents include funds deposited with financial institutions and short-term, liquid investments in accounts with original maturities of three months or less. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances less the allowance for credit losses and any deferred fees or costs. Commitment terms of the Company’s financing agreements generally range from two to five years with interest charged on a daily floating rate basis. Funding under revolving loan commitments is subject to the Company’s estimation of the value of the accounts receivable pledged as collateral.
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8 2. Summary of Significant Accounting Policies…continued Revenue Recognition Income on loans receivable is recognized using the simple interest method. Revolving loan origination fees and costs are deferred and amortized on a straight-line basis over the terms of the related loan commitments as an adjustment to interest income on loans. Term loan origination fees and costs are deferred and amortized using either the effective interest method or the straight-line method over the life of the loan as an adjustment to interest income. The straight-line method may be used for term loan facilities when it approximates the effective interest method. Other fees, such as unused balance and collateral monitoring fees, are recognized when the services are provided. Termination fees are recognized when a loan is terminated. These other fees are included in other income. The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent unless the loan is adequately secured. Typically, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current interest income and all future proceeds received will generally be applied against principal or interest, in the judgment of management. Loans are returned to accrual status when all principal and interest amounts contractually due are reasonably assured. Allowance for Credit Losses Effective January 1, 2023, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326). ASU 2016-13 requires a current expected credit loss (“CECL”) measurement to estimate the allowance for credit losses replacing the estimate of probable credit losses inherent in the loan portfolio. The Company adopted ASU 2016-13 using the modified retrospective method. Upon adoption, the Company recognized an overall decrease in the allowance for credit losses of approximately $429,000 as a cumulative effect adjustment from a change in accounting policies, which increased Members’ equity. The allowance for credit losses reflects the Company’s current estimate of potential credit losses in the loan portfolio at year end. The CECL methodology is based on relevant information about past events, including, but not limited to, historical loss experience, current portfolio composition, market conditions and reasonable and supportable forecasts that affect the collectability of the reported loan balances for the duration of each respective loan. Increases and decreases to the allowance for credit losses are recorded through the Provision for credit losses in the Consolidated Statements of Operations. The Company’s portfolio currently consists of revolving lines of credit. All loans in the Company’s portfolio are individually evaluated when determining the risk rating for each loan. A lower internal risk rating represents less risk while a higher internal risk rating represents more risk. Credit risk ratings for each borrower are established based on certain qualitative and quantitative factors including an assessment of management and strategy, historical and projected repayment capacity, collateral coverage and performance, financial condition and sponsorship, strength of guarantees and any contingencies. The allowance for credit losses on loans classified as “Pass” is assessed using historical loss experience, the expected weighted-average remaining maturity of the portfolio, adjusted for expected prepayments, and a qualitative economic view. The Company also reviews trends in the weighted-average risk of the portfolio to determine whether risk characteristics of the current portfolio, relative to the historical portfolio, could signal a greater risk of expected loss. In accordance with CECL, the Company’s allowance for credit losses may be adjusted to reflect management’s assessment of current and future economic conditions that may impact the performance of each borrower. The assessment includes, but is not limited to, unemployment rates, interest rates, expectations of inflation and/or recession, as well as various other macroeconomic factors that could impact the likelihood of potential credit losses during a loan’s anticipated term.
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9 2. Summary of Significant Accounting Policies…continued Allowance for Credit Losses…continued Specific allowances for credit losses are generally applied to certain loans classified as “Substandard.” Generally, these loans are individually evaluated and typically measured based on a comparison of the recorded carrying value of the loan to the present value of the loan’s expected cash flow using the loan’s effective interest rate, the loan’s estimated market price or the estimated fair value of the underlying collateral, if the loan is collateral-dependent combined with the strength of any guarantee arrangements. Specific allowances are recorded when the discounted cash flows, collateral value, or aggregate market price of the individually evaluated loan is lower than the carrying value of that loan. Loans are charged off when collection is questionable and when the Company can no longer justify maintaining the loan as an asset on the consolidated balance sheets. Loans qualify for charge off when, after thorough analysis, all possible sources of collection are determined to be insufficient to repay the loan. These include impairment of potential future cash flow, value of collateral and/or financial strength of guarantors. Recoveries of previous charge- offs are recorded when received. For the years ended December 31, 2025 and 2024, there were no recoveries of previous charge-offs. Goodwill Goodwill arose from the acquisition of the Company on September 30, 2013 (Note 1).Goodwill represents the excess of the purchase price over the fair value of those acquired net assets. Goodwill is not amortized, but instead is reviewed for impairment annually typically in December of each year or more frequently upon the occurrence of certain events or substantive changes in circumstances. The Company assesses goodwill for impairment by comparing the carrying value of the Company to its fair value. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the conclusion is supported that it is more likely than not that the fair value is less than its carrying amount, then the Company would need to perform a quantitative impairment test. If the conclusion cannot be supported, or if the Company does not elect to do the qualitative assessment, then the Company will perform a quantitative assessment. If a quantitative goodwill impairment assessment is performed, the Company utilizes a combination of market and income valuation approaches. No impairment of goodwill resulted for the years ended December 31, 2025 and 2024, respectively. Furniture and Equipment Furniture and equipment are recorded at cost, net of accumulated depreciation, and are depreciated on a straight-line basis over their estimated useful lives ranging from three to five years. Debt Issuance Costs The Company reports origination and other costs related to debt issuances as a direct deduction from the carrying amount of the debt liability. These expenses are deferred and amortized using either the effective interest method or the straight-line method over the stated life as an adjustment to interest expense. The straight-line method may be used on revolving facilities when it approximates the effective interest method. Income Taxes The Company is not subject to federal or state income taxes. Members of the Company have elected to report the taxable income or loss on their individual tax returns. Accordingly, no provision for income taxes has been recorded in the accompanying consolidated financial statements.
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10 2. Summary of Significant Accounting Policies…continued Income Taxes…continued The Company applies authoritative guidance relating to the accounting for uncertain tax positions. Accordingly, a provision for uncertain tax positions and related penalties and interest is recognized when it is more-likely-than-not, based on the technical merits, that the tax position will not be realized or sustained upon examination by the appropriate taxing authority. Management determined there were no tax uncertainties that met the recognition threshold in 2025 and 2024, respectively. The Company files both federal and state income tax returns. The Company remains subject to examination by taxing authorities for the years 2022 and after. Employee Retention Credit The Employee Retention Credit (“ERC”) under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, as amended, provides eligible employers a refundable tax credit against the employer’s share of payroll taxes on a percentage of qualified wages paid after March 12, 2020 and before October 1, 2021, subject to certain maximum amounts per employee. The Company determined that it qualified for the ERC, amended its previously filed payroll tax returns and received refunds during 2025 and 2024, respectively. The Company has elected to account for the ERC in accordance with FASB Accounting Standards Codification 410, Asset Retirement and Environmental Obligations, to recognize the credits when received. Accordingly, the Company has recognized an expense reduction within the Compensation and benefits line item in its Consolidated Statements of Operations for the years ended December 31, 2025 and 2024, respectively. 3. Loans Receivable The following table shows the composition of loans receivable, net as of December 31, 2025 and 2024: 2025 2024 Revolving loans receivable $ 158,867,066) $ 131,958,610 Less allowance for credit losses (846,838) (707,876) Less deferred origination fees and costs, net (994,873) (1,043,767) Loans receivable, net $ 157,025,355 $ 130,206,967 4. Allowance for Credit Losses and Recorded Investment in Loans Receivable The following table summarizes the activity in the allowance for credit losses for revolving loans for the respective years ended December 31, 2025 and 2024: 2025 2024 Beginning balance $ 707,876 $ 605,751 Provision for credit losses 138,962 102,125 Ending balance $ 846,838 $ 707,876 Collectively evaluated for impairment $ 846,838 $ 707,876 Individually evaluated for impairment $ - $ -
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11 4. Allowance for Credit Losses and Recorded Investment in Loans Receivable…continued The following table presents revolving loans collectively and individually evaluated for impairment at December 31, 2025 and 2024: 2025 2024 Revolving loans $ 158,867,066 $ 131,958,610 Collectively evaluated for impairment $ 158,867,066 $ 131,958,610 Individually evaluated for impairment $ - $ - There were no revolving loans that were past due or were on non-accrual at December 31, 2025 and 2024, respectively. Credit Quality Indicators The following table summarizes the loan portfolio by the Company’s internal credit rating (scale: 1 to 7) as of December 31, 2025 and 2024: Loans with a rating of 4 or better generally pose minimal risk to the Company as they exhibit, among other things, one or more of the following attributes: (1) secured collateral position; (2) satisfactory cash flows; and (3) history of timely payment of debt obligations. Loans credit rated below 4 are considered “watchlist” loans; an overall degree of risk exists with these loans that warrants management’s review each quarter. December 31, 2025 2024 Rated 4 or better $ 158,867,066 $ 131,958,610 Rated 5 or worse - - Total revolving loans $ 158,867,066 $ 131,958,610 5. Furniture and Equipment Furniture and equipment are comprised of the following at December 31, 2025 and 2024: 2025 2024 Computer software and equipment $ 220,851 $ 194,727 Furniture and fixtures 41,032 41,032 Leasehold improvement 21,551 21,551 Total 283,434 257,310 Less accumulated depreciation (228,833) (207,968) Furniture and equipment, net $ 54,601 $ 49,342 Depreciation expense was $20,865 and $23,080 for the years ended December 31, 2025 and 2024, respectively.
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12 6. Debt Credit Facility. On May 27, 2016, the Company entered into a non-recourse $125,000,000 secured revolving credit facility. Effective with amendments dated August 24, 2023 and September 19, 2024, the credit facility was increased to $150,000,000 and $160,000,000, respectively, which is expandable to $200,000,000 under its accordion feature. The maturity date of the credit facility is March 31, 2026. Under the terms of the credit facility, the Company is required to comply with various covenants, including financial and reporting requirements and other customary requirements for similar credit facilities. The credit facility also includes usual and customary events of default for credit facilities of this nature. Amounts available to borrow under the credit facility are also subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio that are pledged as collateral. As of December 31, 2025 and 2024, there were principal borrowings of $127,200,000 and $99,600,000 outstanding, respectively, under the credit facility which is collateralized by eligible loans and related securities. Interest on the credit facility accrues at a variable rate per annum of one-month Term Secured Overnight Financing Rate (“SOFR”) plus 2.35% approximating 6.07% and 6.71% at December 31, 2025 and 2024, respectively. The Company also pays other customary loan fees for the credit facility. The credit facility amount in the consolidated balance sheets is comprised of the following at December 31, 2025 and 2024: 2025 2024 Principal borrowings $ 127,200,000 $ 99,600,000 Unamortized debt issuance costs (261,102) (1,305,509) Credit facility, net $ 126,938,898 $ 98,294,491 The Company is in the process of amending and extending the maturity of the credit facility and expects the credit facility amendment to be completed before its current maturity of March 31, 2026. Loan from Affiliate – Related Party. On December 31, 2024, SLR Healthcare entered into a $4,000,000 revolving loan agreement with SLR Investment. Effective with an amendment dated April 23, 2025, the agreement was increased to $10,500,000. The interest rate on the facility is three-month Term SOFR plus 6.50%. Interest payments are due quarterly until maturity in April 2026. The outstanding principal balances were $1,800,000 and $4,000,000 as of December 31, 2025 and 2024, respectively. 7. Commitments, Contingencies and Concentrations At December 31, 2025 and 2024, the Company has committed facilities to its borrowers totaling approximately $297,750,000 and $288,250,000, respectively, of which approximately $138,883,000 and $156,291,000, respectively, was unused. Borrowers may borrow up to the lesser of (i) the committed facility or (ii) the underlying collateral value multiplied by the advance rate. Of the unused committed facility amount at December 31, 2025 and 2024, borrowers could borrow up to approximately $53,880,000 and $64,865,000, respectively. As of December 31, 2025 and 2024, the Company had sufficient cash available and/or availability under its credit facility to fund its commitments. From time to time, the Company is subject to litigation arising in the ordinary course of business. It is the opinion of the Company’s management that there is no material exposure to any claims pending in connection with any proceedings.
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13 7. Commitments, Contingencies and Concentrations…continued At December 31, 2025 and 2024, the Company had one loan approximating 20% and 21% of the total loans receivable, respectively. On September 17, 2025, the Company entered into a new operating lease for its primary office, which is for a period of 91 months commencing upon completion of construction by the lessor, which is anticipated to be in March 2026. The Company also has annual and month-to-month leases for office space in several cities across the United States. The Company has elected not to recognize leases with a term of 12 months or less in the balance sheet. 8. Employee Benefit Plans The Company sponsors a 401(k) savings plan, where the Company contributes a defined percentage of employees’ earnings up to the maximum contribution amount as determined by the Internal Revenue Service. The Company formed a Long-Term Incentive Plan (“LTIP”) that provides for an annual bonus pool to employees based on the Company achieving certain performance criteria. LTIP payouts may be in the form of equity in the Company. 9. Fair Value Disclosure Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following information should not be interpreted as an estimate of the fair value of the entire Company, since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Assets and liabilities measured at fair value on a recurring basis are summarized in the table below at December 31, 2025 and 2024. 2025 Carrying Value Fair Value Financial assets: Cash and cash equivalents (Level 1) $ 231,124 $ 231,124 Loans receivable, net (Level 3) 157,025,355 158,020,228 Financial liabilities: Credit facility, net (Level 2) 126,938,898 127,200,000 Loan from affiliate (Level 2) 1,800,000 1,800,000 2024 Carrying Value Fair Value Financial assets: Cash and cash equivalents (Level 1) $ 74,128 $ 74,128 Loans receivable, net (Level 3) 130,206,967 131,250,734 Financial liabilities: Credit facility, net (Level 2) 98,294,491 99,600,000 Loan from affiliate (Level 2) 4,000,000 4,000,000
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14 10. Subsequent Events The Company evaluated subsequent events for recognition or disclosure through February 12, 2026, which was the date the consolidated financial statements were available to be issued.
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Exhibit 99.5 North Mill Holdco LLC and Subsidiaries Consolidated Financial Statements Years Ended December 31, 2025 and 2024
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 Page(s) Independent Auditors’ Report 1-2 Consolidated Financial Statements Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Members’ Equity 5 Consolidated Statements of Cash Flows 6 Notes to Consolidated Financial Statements 7-16
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Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. 1 Independent Auditors' Report To the Audit Committee of North Mill Holdco LLC and Subsidiaries Opinion We have audited the consolidated financial statements of North Mill Holdco LLC and Subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of operations, changes in members’ equity and cash flows for the years then ended, and the related notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
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2 Auditors' Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit. Philadelphia, Pennsylvania February 12, 2026
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The accompanying notes are an integral part of these consolidated financial statements. 3 North Mill Holdco LLC and Subsidiaries Consolidated Balance Sheets December 31, 2025 and 2024 2025 2024 Assets: Cash and cash equivalents $ 16,543,680 $ 15,876,966 Finance receivables: Loans receivable 179,173,719 169,439,798 Less: Unearned fee income (84,167) (111,375) Plus: Deferred loan origination costs 235,832 71,684 179,325,384 169,400,107 Accounts receivable 356,026,980 318,962,336 Less: allowance for uncollectible finance receivables (2,535,947) (2,861,153) Finance receivables, net 532,816,417 485,501,290 Accrued interest receivable 2,062,446 2,270,511 Other assets 473,152 621,987 Furniture and equipment, net 642,072 714,884 Goodwill 19,242,729 19,242,729 Right-of-use asset 2,333,021 2,848,724 Total assets $ 574,113,517 $ 527,077,091 Liabilities and Members' Equity: Credit facility payable, net of issuance costs (Note 7) $ 271,269,891 $ 230,608,319 Due to factoring clients 196,716,444 174,789,928 Accounts payable and accrued expenses 13,401,718 24,295,595 Lease liability 2,333,021 2,848,724 Total liabilities 483,721,074 432,542,566 Commitments (Note 8) Members' Equity 90,392,443 94,534,525 Total liabilities and members' equity $ 574,113,517 $ 527,077,091
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The accompanying notes are an integral part of these consolidated financial statements. 4 North Mill Holdco LLC and Subsidiaries Consolidated Statements of Operations Years Ended December 31, 2025 and 2024 2025 2024 Net interest income: Interest and finance charges $ 51,068,198 $ 43,407,257 Interest expense (18,449,961) (16,119,927) Net interest income 32,618,237 27,287,330 Service fees and other finance charges 3,757,020 2,483,719 Net interest and other non-interest income 36,375,257 29,771,049 Provision for uncollectible finance receivables (549,907) (479,725) Net interest income after provision for uncollectible finance receivables 35,825,350 29,291,324 Operating expenses: Compensation and benefits 20,832,289 16,102,962 General and administrative expenses 4,511,032 2,772,032 Legal and professional fees 911,834 379,829 Acquisition expenses - 1,490,294 Total operating expenses 26,255,155 20,745,117 Other income: Bargain purchase gain (Note 3) - 1,903,881 Net income $ 9,570,195 $ 10,450,088
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The accompanying notes are an integral part of these consolidated financial statements. 5 North Mill Holdco LLC and Subsidiaries Consolidated Statements of Changes in Members' Equity Years Ended December 31, 2025 and 2024 Balance, December 31, 2023 $ 61,616,463 Member contributions 30,000,000 Net income 10,450,088 Distributions to members (7,532,026) Balance, December 31, 2024 94,534,525 Net income 9,570,195 Distributions to members (13,712,277) Balance, December 31, 2025 $ 90,392,443
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The accompanying notes are an integral part of these consolidated financial statements. 6 North Mill Holdco LLC and Subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, 2025 and 2024 2025 2024 Cash flows from operating activities: Net income $ 9,570,195 $ 10,450,088 Adjustments to reconcile net income to net cash provided by operating activities: Provision for uncollectible finance receivables 549,907 479,725 Depreciation 207,431 206,370 Amortization of deferred debt issuance costs 604,899 514,268 Bargain purchase gain (Note 3) - (1,903,881) Changes in assets and liabilities, net of acquisition related amounts: (Increase) decrease in: Deferred loan origination costs (164,148) (35,643) Accrued interest receivable 208,065 (111,736) Other assets 148,835 (286,188) Increase (decrease) in: Unearned fee income (27,208) (27,952) Accounts payable and accrued expenses 3,678,502 4,795,010 Due to factoring clients 21,926,516 (4,989,077) Net cash provided by operating activities 36,702,994 9,090,984 Cash flows from investing activities: (Increase) decrease in finance receivables, net (47,673,678) 65,429,209 Acquisition of Hollywood BC, net of cash acquired (Note 3) (14,572,379) (109,055,738) Purchases of furniture and equipment (134,619) (317,130) Net cash used in investing activities (62,380,676) (43,943,659) Cash flows from financing activities: Net borrowings from credit facility payable 42,126,157 8,117,189 Member contributions - 30,000,000 Payment of debt issuance costs (2,069,484) (85,000) Distributions to members (13,712,277) (7,532,026) Net cash provided by financing activities 26,344,396 30,500,163 Net increase (decrease) in cash and cash equivalents 666,714 (4,352,512) Cash and cash equivalents at beginning of year 15,876,966 20,229,478 Cash and cash equivalents at end of year $ 16,543,680 $ 15,876,966 Supplemental disclosure of cash flow information: Cash paid for interest $ 17,687,573 $ 15,401,870 Deferred acquisition consideration payable $ - $ 14,572,379
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7 North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 Note 1. Nature of the Business The operations of North Mill Holdco LLC (“Holdco”) and Subsidiaries (collectively, the “Company”) consist primarily of those financial activities common to the commercial asset-based finance industry. Holdco, a subsidiary of SLR Investment Corp. (“SLRC”), was formed on May 17, 2019 in connection with the acquisition of Summit Financial Resources, LLC (“Summit”). As of December 31, 2025, Holdco has majority ownership of two subsidiaries, North Mill Capital LLC (“NMC”) and Summit. NMC was formed as a single-member Delaware limited liability company on August 18, 2010 and commenced operations on October 29, 2010. SLRC acquired a controlling interest in NMC on October 20, 2017. SLRC contributed its interests in NMC to Holdco on June 28, 2019. NMC has two wholly-owned subsidiaries, PrinSource Capital Companies, LLC (“PrinSource”) and SLR Digital Finance LLC (“Digital Finance”). NMC is a specialty finance company based in New Jersey that is engaged in providing asset-based commercial financing to small and medium-sized businesses. NMC’s core business is providing and servicing loans ranging from $200,000 to $40,000,000 which are secured by assets such as accounts receivable, inventory, general intangibles and equipment. Borrowers are located throughout the United States. PrinSource, based in Minnesota, was acquired by NMC on December 30, 2011. PrinSource provides working capital financing solutions primarily through invoice factoring. Digital Finance, based in Los Angeles, was acquired by NMC on June 3, 2021. Digital Finance provides factoring and asset-based loans to companies in the ad tech and media spaces. Summit, based in Salt Lake City, was acquired by Holdco on June 28, 2019. Summit provides accounts receivable factoring to clients across various industries. Hollywood BC AcquisitionCo LLC (“Hollywood”), a wholly- owned subsidiary of Summit, was formed on August 26, 2024. Through its ownership in Hollywood, Holdco acquired an asset-based factoring portfolio from Webster Bank, N.A. effective September 27, 2024 (Note 3). Note 2: Summary of Significant Accounting Policies Significant accounting policies are as follows: Basis of accounting: The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of consolidation: The consolidated financial statements include the accounts of Holdco and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Revenue recognition: The Company recognizes interest and fee income in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 310, Receivables. Interest income is recognized as earned based on the terms of the underlying credit agreement. Fees received for the origination of loans are deferred and amortized into interest and finance charges over the contractual lives of the loans and annual fees received for loans are deferred and amortized into interest and finance charges over a twelve-month period using the straight-line method, which approximates the effective interest rate method. Unamortized amounts are recognized as income at the time that loans are paid in full. Interest income recorded on finance receivable is recognized using the effective interest method. Interest and fee income are accrued based on the outstanding receivable balance and charged monthly to the receivable balance as earned, except in instances that a reasonable doubt exists as to the collectability of interest, in which case the accrual of income may be suspended.
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 8 Note 2: Summary of Significant Accounting Policies...continued Revenue recognition…continued: Service fees and other finance charges include wire transfer fees, field examination charges, late reporting fees and other items charged to borrowers. These items are recognized as income in the statements of operations as charged in accordance with FASB ASC 606, Revenue from Contracts with Customers. Cash: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash includes all deposits held at banks. Deposits in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) are exposed to loss in the event of nonperformance by the institution. The Company has had cash deposits in excess of the FDIC insurance coverage and has not experienced any losses on such accounts in the years ended December 31, 2025 and 2024. Loans receivable: The Company’s loan portfolio consists of asset based loans which are held to maturity by the Company and measured at amortized cost. The loans are further classified as either performing or non-performing. The Company provides asset-based financing primarily in the form of revolving credit facilities collateralized by the borrower’s assets, including, but not limited to, accounts receivable, inventory, equipment and general intangible assets. The loan terms are generally one to three years and management has the intention and ability to hold the loans until maturity or payoff. Provisions for uncollectible finance receivables for loan receivables are charged to operations in amounts sufficient to maintain an allowance considered adequate to cover the estimated losses of principal and accrued interest (if any) in the existing loan portfolio. The Company’s charge-off policy is based on a loan-by-loan review of all receivables. Management periodically evaluates the adequacy of the allowance for uncollectible finance receivables by reviewing credit loss experience, change in size and character of credit risks, the value of collateral and general economic conditions. Receivables are charged off against the allowance when management determines that there is insufficient collateral to support the loan and believes that it is no longer probable that principal and/or interest payments will be collected. Accounts receivable: Accounts receivable consist of factored receivables including factored receivables specifically for digital media companies sourced by Digital Finance. As of December 31, 2025 and 2024, the factored receivables portfolio totals $356,026,980 and $318,962,336, respectively. Accounts receivable are stated at cost, net of an allowance for uncollectible finance receivables. Allowance for uncollectible finance receivables: The Company’s allowance for uncollectible finance receivables is accounted for in accordance with FASB ASC 326, Financial Instruments – Credit Losses and utilizes a current expected credit loss (“CECL”) methodology. The measurement of current expected credit losses under the CECL methodology is an estimate of lifetime expected credit losses on financial assets measured at amortized cost, including loan and accounts receivables, as of the balance sheet date based on an evaluation of the assets’ current risk profile, past events and current market and lending conditions. The method utilized by the Company to estimate expected credit losses is the weighted average maturity (“WARM”) methodology which contemplates expected losses at a pool-level, utilizing historic loss information. Each period, the CECL reserve is reduced by charge-offs, increased by recoveries of previously recognized charge-offs, and increased or decreased by the provision for credit losses, which is recorded on the provision for uncollectible finance receivables on the statements of operations. The cumulative loss rate used as the basis for the estimate of credit losses for uncollectible finance receivables is comprised of the Company’s historical loss experience from 2010 through 2025. In accordance with CECL, the Company’s allowance for uncollectible finance receivables may be adjusted to reflect management’s assessment of current and future economic conditions that may impact the performance of the borrowers, historical charge-offs, trends in loan volumes, industry concentrations including providing working capital facilities to digital media companies, the weighted average maturity of the loan portfolio, and the likelihood of funding unfunded commitments. When the Company determines that there is insufficient collateral to support an outstanding loan or account receivable balance and believes it is no longer probable that principal and/or interest payments will be collected, the Company will generally place the loan on non-accrual status. When placed on non-accrual, specific
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 9 Note 2: Summary of Significant Accounting Policies...continued Allowance for uncollectible finance receivables…continued: allowances for uncollectible finance receivables are generally applied. The specific allowance is measured based on a comparison of the recorded carrying value of the loan to the present value of the loan’s expected cash flow using the loan’s effective interest rate, the loan’s estimated market price, or the estimated fair value of the underlying collateral, if the loan is collateral-dependent. Uncollectible finance receivables are charged off against the allowance at the earlier of either the substantial completion of the liquidation of assets securing the loan, or when senior management deems the loan to be permanently impaired. Non-accrual receivables may be restored to accrual status if past due principal and accrued interest are paid in cash, and, in management’s judgment, are likely to continue being a performing loan. The Company also maintains an allowance on unfunded commitments. The methodology for determining the allowance for unfunded commitments is consistent with the methodology used for determining the allowance for uncollectible finance receivables, with the exception that the allowance is only applied against the portion of the unfunded commitment expected to be drawn upon. An allowance of $16,582 and $16,677 was recorded relating to these commitments at December 31, 2025 and 2024, respectively. Loan participations: The Company enters into participation funding arrangements with third-party lending institutions, whereby those institutions participate in loans originated by the Company. These arrangements are used by the Company to manage risk associated with loans and accounts receivable that may potentially exceed funding limits. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: the assets have been isolated from the Company – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership; the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Furniture and equipment, net: Furniture and equipment is recorded at cost and stated net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated lives of the assets, which are generally three to five years for equipment, ten years for furniture and fixtures, and the shorter of the remaining lease term or the asset’s estimated useful life for leasehold improvements. Debt issuance costs: Debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company’s revolving credit facility. Such costs are capitalized and recorded as a reduction to the revolving credit facility on the accompanying consolidated balance sheets. These costs are amortized using the straight-line method into earnings as interest expense ratably over the contractual term of the facility. Impairment of long-lived assets: The Company reviews long-lived assets, including furniture and equipment and intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss is recognized when undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than the carrying amount. No impairments have occurred in 2025 or 2024. Goodwill: Goodwill represents the excess of consideration paid for an acquired business over the fair value of the related assets acquired and liabilities assumed. The Company is required to assess its goodwill for impairment annually, or more frequently if events or changes in circumstances indicate impairment may have occurred. The Company has elected to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the conclusion is supported that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment test. If the conclusion cannot be supported, or if the Company does not elect to do the qualitative assessment, then the Company will perform a quantitative assessment. If a quantitative goodwill impairment assessment is performed, the Company utilizes a combination of market and income valuation approaches. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the reporting unit is less than its carrying value. No impairment charge was recorded during the years ended December 31, 2025 and 2024.
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 10 Note 2: Summary of Significant Accounting Policies...continued Income taxes: The Company applies the provisions set forth in FASB ASC 740-10, Accounting for Uncertainty in Income Taxes. ASC 740-10 provides a comprehensive model for the recognition, measurement and disclosure of uncertain income tax positions. The Company recognizes the tax effect of certain tax positions when it is more likely than not that the tax position will be sustained upon examination, based solely on the technical merits of the tax position. No provision has been made for income taxes, if any, as these are the obligation of the members. The Company files income tax returns as a partnership in the U.S. federal jurisdiction and in various state jurisdictions. As of December 31, 2025 and 2024, the Company does not have any uncertain tax positions that meet the recognition or measurement criteria of FASB ASC 740-10. Leases: The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. The Company is a lessee in several non-cancellable operating leases for office space. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The Company recognizes a right- of- use (ROU) asset and a lease liability, initially and subsequently, based on the present value of its future lease payments. The discount rate is the implicit rate, if it is readily determinable, or otherwise the Company uses its incremental borrowing rate. The implicit rates of the Company’s leases are not readily determinable and accordingly, the Company uses an incremental borrowing rate based on the information available at the commencement date for all leases. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The ROU asset is subsequently remeasured when lease modifications occur at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepared (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. Note 3. Acquisition On September 27, 2024, the Company acquired 100% of an asset-based factoring portfolio and its related operations from Webster Bank, N.A. The total purchase price of $127,497,653 was calculated based on the estimated average net funds employed in the acquired portfolio prior to the acquisition, plus a premium, less certain adjustments, as described in the purchase agreement. Of the $127,497,653 purchase price, $112,925,274 was paid in cash on the closing date and the remaining $14,572,379 was deferred and paid during 2025. This amount is recorded as a component of accounts payable and accrued expenses on the accompanying consolidated balance sheet for the year ended December 31, 2024. The acquisition was accounted for as a business combination in accordance with FASB ASC 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date Assets Acquired Accounts receivable $ 280,237,285 Cash 3,869,537 $ 284,106,822 Liabilities Assumed Due to factoring clients $ 154,705,288 $ 154,705,288 The acquisition date fair value of the assets acquired less liabilities assumed was more than the purchase price. This resulted in a bargain purchase gain totaling $1,903,881, which is recorded on the consolidated statement of operations for the year ended December 31, 2024. Acquisition related costs totaling $1,490,294, including legal, professional and other expenses, are recorded as acquisition expenses on the consolidated statement of operations and are not included in the purchase price. There were no acquisitions completed in the year ended December 31, 2025.
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 11 Note 4. Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements (“ASC 820”), establishes a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect management’s market assumptions. These inputs create the following fair value hierarchy: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liaibility, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. FASB ASC 820 also requires that the Company disclose estimated fair values for its financial instruments. No quoted market exists for the Company’s financial instruments. Therefore, fair market estimates are based on judgments, risk characteristics of various financial instruments and other factors. Changes in these assumptions could significantly affect the estimates. Management estimates that the carrying value of cash and accrued interest receivable approximates its fair value at both December 31, 2025 and 2024. Since there is no liquid secondary market for the Company’s financing receivables, management estimates the fair value of its secured loans by comparing the average yield of the portfolio to recent issuances of similar loans. The inputs used to measure the fair value of secured loans and credit facility payable are considered Level 3 under the fair value hierarchy described above. The carrying amount and estimated fair values of the Company’s financial instruments at December 31, 2025 and 2024, respectfully, are as follows: December 31, 2025 Fair Value Measurements Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Loans receivable, net of allowance $ 176,946,005 $ 176,946,005 $ - $ - $ 176,946,005 Accounts receivable, net of allowance 355,870,412 355,870,412 - - 355,870,412 Financial liabilities: Credit facility payable, net of issuance costs 271,269,891 271,269,891 - - 271,269,891 December 31, 2024 Fair Value Measurements Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Loans receivable, net of allowance $ 166,939,597 $ 166,939,597 $ - $ - $ 166,939,597 Accounts receivable, net of allowance 318,561,693 318,561,693 - - 318,561,693 Financial liabilities: Credit facility payable, net of issuance costs 230,608,319 230,608,319 - - 230,608,319
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 12 Note 5. Loans and Accounts Receivable and Allowance for Uncollectible Finance Receivables Loans receivable at December 31, 2025 and 2024 consist of revolving lines of credit to commercial customers that range from one to three years and are secured by accounts receivable, inventory and equipment. Commitments to borrowers are dependent on the borrowing base and are generally limited to 85% of the collateral being presented. Changes in the allowance for uncollectible finance receivables for loans receivable and accounts receivable are as follows: Loans Receivable Accounts Receivable Total Balance, December 31, 2023 $ 2,105,784 $ 222,607 $ 2,328,391 Provision (credit) for uncollectible finance receivables 301,690 178,035 479,725 Net (charge offs) recoveries 53,037 - 53,037 Balance, December 31, 2024 2,460,511 400,642 2,861,153 Provision (credit) for uncollectible finance receivables 724,074 (174,167) 549,907 Net (charge offs) recoveries (805,206) (69,907) (875,113) Balance, December 31, 2025 $ 2,379,379 $ 156,568 $ 2,535,947 The Company has implemented and adheres to an internal review system and credit loss allowance methodology designed to provide for the detection of problem receivables and an adequate allowance to cover credit losses. At least quarterly, a risk rating is assigned to individual balances. Management assigns a higher risk rating when they determine that their credit exposure has increased. Management assigns these risk ratings based on a number of factors including, but not limited to, the profitability, cash flow position, tangible net worth, strength of collateral performance and coverage, the probability of a loss being realized and results of internal audits and verifications related to each specific receivable. The Company’s credit risk rating system has nine grades, with each grade corresponding to a progressively greater risk of default. Risk ratings of (1) through (6) are performing categories and risk ratings of (7) through (9) are non- performing categories. Non-performing credits are: a (7) rated credit has a potential weakness which, if uncorrected, may result in a deterioration of the repayment prospects or inadequately protect the Company’s credit position at some time in the future; (8) rated credits are credits that have a well-defined weakness or weaknesses that jeopardize the full repayment of the debt or make collection or liquidation in full highly questionable and improbable, when considering existing facts, conditions, and values. Credits rated (9) are considered uncollectible and of such little value that their continuance as assets is not warranted.
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 13 Note 5. Loans and Accounts Receivable and Allowance for Uncollectible Finance Receivables...continued Loans receivable that are classified as performing loans total $179,173,719 and $169,439,798 at December 31, 2025 and 2024, respectively. There were no loans receivable classified as non-performing at December 31, 2025 and 2024. Accounts receivable that are classified as performing total $356,026,980 and $318,962,336 at December 31, 2025 and 2024, respectively. There were no accounts receivable classified as non-performing at December 31, 2025 and 2024. The following tables present the net book value of the Company’s finance receivables as of December 31, 2025 and 2024, by year of origination, type of receivable and risk classification. December 31, 2025 Net Book Value of Finance Receivables by Year of Origination 2025 2024 2023 2022 Prior Revolving Loans Amortized CostBasis Total Loans receivable Performing $ - $ - $ - $ - $ - $ 179,325,384 $ 179,325,384 Non-performing - - - - - - - Total loans receivable - - - - - 179,325,384 179,325,384 Accounts receivable Performing $ 49,337,526 13,616,307 72,840,916 14,214,326 206,017,904 - 356,026,980 Non-performing - - - - - - - Total accounts receivable 49,337,526 13,616,307 72,840,916 14,214,326 206,017,904 - 356,026,980 Total finance receivables $ 49,337,526 $ 13,616,307 $ 72,840,916 $ 14,214,326 $ 206,017,904 $ 179,325,384 535,352,364 Allowance for uncollectible finance receivables (2,535,947) Finance receivables, net $ 5 32,816,417
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 14 Note 5. Loans and Accounts Receivable and Allowance for Uncollectible Finance Receivables...continued December 31, 2024 Net Book Value of Finance Receivables by Year of Origination 2024 2023 2022 2021 Prior Revolving Loans Amortized CostBasis Total Loans receivable Performing $ - $ - $ - $ - $ - $ 169,400,107 $ 169,400,107 Non-performing - - - - - - - Total loans receivable - - - - - 169,400,107 169,400,107 Accounts receivable Performing $ 13,173,778 70,093,043 20,234,320 9,653,964 2 05,807,231 - 318,962,336 Non-performing - - - - - - - Total accounts receivable 13,173,778 70,093,043 20,234,320 9,653,964 2 05,807,231 - 318,962,336 Total finance receivables $ 13,173,778 $ 70,093,043 $ 20,234,320 $ 9,653,964 $ 2 05,807,231 $ 169,400,107 488,362,443 Allowance for uncollectible finance receivables (2,861,153) Finance receivables, net $ 4 85,501,290 The Company typically classifies all loans as held to maturity. A finance receivable is considered non-performing when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments in accordance with the contractual terms of the receivable. Factors considered in determining non-performing loans and accounts receivable include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by- case basis. All circumstances surrounding the receivable are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. These factors are considered on a receivable- by-receivable basis. Accrued interest receivable totals $2,062,446 and $2,270,511 at December 31, 2025 and 2024, respectively, and is reported on the consolidated balance sheets. The accrual of accrued interest is in accordance with the non-accrual policy as stated in Note 2. The Company did not have any loans or accounts receivable that are non-performing, modified, or past due 30 days or more as of December 31, 2025 and 2024. Note 6. Furniture and Equipment, net Furniture and equipment consists of the following at December 31, 2025 and 2024: December 31, 2025 2024 Furniture and fixtures $ 799,654 $ 728,493 Equipment 2,142,686 2,097,032 Leasehold improvements 153,873 136,069 3,096,213 2,961,594 Less: Accumulated depreciation (2,454,141) (2,246,710) $ 642,072 $ 714,884 Depreciation expense was $207,431 and $206,370 for the years ended December 31, 2025 and 2024, respectively, and is included as a component of General and administrative expenses on the accompanying consolidated statements of operations.
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 15 Note 7. Credit Facility Payable The Company has a $367,000,000 credit facility which expires November 13, 2028. Borrowings are secured by substantially all of the Company’s assets. Interest on borrowings under the facility is payable monthly and is based on the SOFR plus an applicable margin, as defined. The interest rate was 5.72 percent at December 31, 2025 and 6.65 percent at December 31, 2024. Outstanding borrowings under the credit facility are generally limited to 85 to 90 percent of eligible receivables, less any reserves established by the bank, as defined. The Company is required to maintain specified financial ratios and to comply with other customary covenants. The balance outstanding under this credit facility consists of the following: December 31, 2025 2024 Outstanding borrowings $ 273,160,506 $ 231,034,349 Less: debt issuance costs, net of accumulated amortization of $3,346,808 and $2,741,909, respectively (1,890,615) (426,030) Credit facility payable, net $ 271,269,891 $ 230,608,319 Total interest expense related to the credit facility totaled $17,665,558 and $15,347,341 for the years ended December 31, 2025 and 2024, respectively, and is included as a component of interest expense on the accompanying consolidated statements of operations. Note 8. Commitments Employment agreements: The Company has entered into service agreements with certain members of management. Annual base compensation due under these agreements is included in personnel expenses in the consolidated statements of operations. The annual base compensation is subject to review and adjustment by the Company. The employees are also eligible to receive bonus compensation at the discretion of the Board of Managers. The agreements can be terminated by either the Company or the employees at any time upon written notice. Certain additional amounts may be paid to the employees, contingent upon the circumstances surrounding the termination, as defined in the service agreements. Operating leases: The Company rents its office space under non-cancelable operating leases that expire through 2033. A right-of-use asset and lease liability totaling $2,333,021 and $2,848,724 at December 31, 2025 and December 31, 2024, respectively, have been recorded on the consolidated balance sheets. The Company’s leases have a weighted average remaining lease term of 5.74 years and a weighted average discount rate of 2.12%. As of December 31, 2025, future minimum lease commitments under the leases include: Operating Lease 2026 $ 617,011 2027 504,178 2028 303,203 2029 310,103 2030 211,940 Thereafter 559,456 Total lease payments 2,505,891 Less: interest expense (172,870) Lease liability balance $ 2,333,021
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North Mill Holdco LLC and Subsidiaries Notes to Consolidated Financial Statements Years Ended December 31, 2025 and 2024 16 Note 8. Commitments continued Rent expense was $723,721 and $661,048 for the years ended December 31, 2025 and 2024, respectively. Unfunded Commitments: Commitments under loan and account receivable facilities aggregated $920,442,533 at December 31, 2025, of which $385,241,834 were unfunded. Advances relating to these unfunded commitments were limited to those facilities with available collateral which totaled $305,500,988 at December 31, 2025. At December 31, 2024, total commitments were $857,952,611, of which $369,550,477 were unfunded. Advances relating to these unfunded commitments were limited to those facilities with available collateral and totaled $242,309,619 at December 31, 2024. Employee Compensation: The Company formed a Long-Term Incentive Plan (“LTIP”) that provides for an annual bonus pool to employees based on the Company achieving certain performance criteria. Note 9. Related Party Transactions NMC has sold participations in various loan agreements to SLRC and its affiliates. These transactions occur in the normal course of business. Effective July 17, 2024 and amended July 15, 2025, NMC and SLRC entered into a subordinated revolving loan and security agreement whereby SLRC committed to provide NMC with a $20,000,000 revolving loan facility. The facility expires on May 13, 2029. Borrowings under the facility incur interest at a rate of SOFR plus 7.00%. There were no amounts outstanding on the revolving loan facility at December 31, 2025 and 2024. Interest expense incurred on the facility totals $17,169 and $24,831 during the years ended December 31, 2025 and 2024, respectively, and is included as a component of interest expense on the consolidated statement of operations. Note 10. Subsequent events The Company has evaluated subsequent events through February 12, 2026, the date which the financial statements were available to be issued.
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Exhibit 99.6 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors SLR Investment Corp.: We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (the PCAOB), the consolidated financial statements of SLR Investment Corp. and subsidiaries (the Company) as of December 31, 2025 and 2024, and for each of the years in the three-year period ended December 31, 2025, and our report dated February 24, 2026 expressed an unqualified opinion on those consolidated financial statements. We have also previously audited, in accordance with the standards of the PCAOB, the consolidated statements of assets and liabilities of the Company, including the consolidated schedules of investments, as of December 31, 2023, 2022 and 2021 and the related consolidated statements of operations, changes in net assets, and cash flows for the years ended December 31, 2022 and 2021 (none of which is presented herein), and we expressed unqualified opinions on those consolidated financial statements. The senior securities information included in Part II, Item 7 of the Annual Report on Form 10-K of the Company for the year ended December 31, 2025, under the caption “Senior Securities” (the Senior Securities Table), has been subjected to audit procedures performed in conjunction with the audit of the Company’s respective consolidated financial statements. The Senior Securities Table is the responsibility of the Company’s management. Our audit procedures included determining whether the Senior Securities Table reconciles to the respective consolidated financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Senior Securities Table. In forming our opinion on the Senior Securities Table, we evaluated whether the Senior Securities Table, including its form and content, is presented in conformity with the instructions to Form N-2. In our opinion, the Senior Securities Table is fairly stated, in all material respects, in relation to the respective consolidated financial statements as a whole. /s/ KPMG LLP New York, New York February 24, 2026