falseQ1--12-310001588272See Note 4 and Note 7 for a discussion of the commitments and contingencies of the Company (as defined in Note 1).See Note 5 for a discussion of the deferred tax asset/liability.See Note 4 for a discussion of related party transactions and arrangements.See Note 5 for a discussion of income tax expense.Unless otherwise noted, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned 25% or more of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. Additionally, companies under common control (e.g., companies with a common owner of greater than 25% of their respective voting securities) are affiliates under the 1940 Act.All investments are denominated in United States Dollars.Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by the Federal Reserve Bank such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the coupon rate. Rate shown represents the actual rate at March 31, 2026. Senior secured loans, while exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 2.2% of the Company’s total assets as of March 31, 2026.Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,709,264 or 94.4% of net assets were fair valued under the Company’s valuation procedures as of March 31, 2026.Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at March 31, 2026 was 3.68%.Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.Represents an affiliated issuer. Assets with a total aggregate fair market value of $6,739,759, or 18.7% of net assets, were affiliated with the Company as of March 31, 2026. See Note 9.Non-income producing security.All or a portion of this security is held through a holding company (See Note 1).Securities with a total aggregate value of $365,123, or 1.0% of net assets, were valued using the issuer’s fair market value NAV as a practical expedient under ASC 820. Please see Notes to Consolidated Financial Statements for an explanation of this hierarchy.Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,348,585 or 93.4% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2025.Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by the Federal Reserve Bank such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2025. Senior secured loans, while exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.State Street U.S. Government Money Market Fund.Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule 2a-5 of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,348,585 or 93.5% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2025.The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at December 31, 2025 was 4.27%.Represents an affiliated issuer. Assets with a total aggregate fair market value of $7,122,475, or 19.4% of net assets, were affiliated with the Company as of December 31, 2025. See Note 9.The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. Non-qualifying assets represented 2.5% of the Company’s total assets as of December 31, 2025.See Note 9 for a discussion of affiliated investments.Includes return of capital distributions resulting in no gain/loss.Represents return of capital distributions resulting in no gain/loss.Represents capital gain distributions included in realized gain (loss) on investments from affiliated issuers on the Statement of Operations, which does not impact the change in unrealized appreciation/depreciation. 0001588272 2026-01-01 2026-03-31 0001588272 2025-12-31 0001588272 2026-03-31 0001588272 2025-01-01 2025-03-31 0001588272 2025-03-31 0001588272 2022-01-01 2022-12-31 0001588272 2024-01-01 2024-12-31 0001588272 2024-12-31 0001588272 cik0001588272:AffiliatedInvestmentsMember 2025-12-31 0001588272 cik0001588272:NonControlledOrNonAffiliatedInvestmentsMember 2025-12-31 0001588272 us-gaap:RelatedPartyMember 2025-12-31 0001588272 cik0001588272:DecemberThirtyFirstTwoThousandAndTwentyEightMember 2025-12-31 0001588272 cik0001588272:ExpenseLimitationAgreementMember us-gaap:RelatedPartyMember 2025-12-31 0001588272 us-gaap:MoneyMarketFundsMember 2025-12-31 0001588272 cik0001588272:AdvisoryFeesAndAdministrationFeesMember us-gaap:RelatedPartyMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UnitedFidelityBankFsbMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SevenSevenSevenPartnersLlcMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansFourMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:PlantswitchInc.Member us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CcsMedicalIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansTwoMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansThreeMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UsGamingLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:NexpointCapitalReitLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AmericanBanknoteCorpMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-12-31 0001588272 cik0001588272:MediaAndTelecommunicationsMember 2025-12-31 0001588272 cik0001588272:EnergyMember 2025-12-31 0001588272 cik0001588272:RealEstateInvestmentTrustsMember 2025-12-31 0001588272 cik0001588272:ConsumerProductsMember 2025-12-31 0001588272 us-gaap:FinancialServiceMember 2025-12-31 0001588272 cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:HealthCareMember 2025-12-31 0001588272 cik0001588272:BioplasticsMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansFirstLienMember 2025-12-31 0001588272 us-gaap:CorporateBondSecuritiesMember 2025-12-31 0001588272 us-gaap:CommonStockMember 2025-12-31 0001588272 cik0001588272:LlcMemberInterestsMember 2025-12-31 0001588272 us-gaap:PreferredStockMember 2025-12-31 0001588272 country:US 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2025-12-31 0001588272 us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:EnergyMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:EnergyMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:EnergyMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2025-12-31 0001588272 cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2025-12-31 0001588272 cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:CommonStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:PreferredStockMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:PreferredStockMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:PreferredStockMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember us-gaap:RealEstateMember 2025-12-31 0001588272 cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2025-12-31 0001588272 us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2025-12-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:CommonStockMember cik0001588272:EnergyMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2025-12-31 0001588272 srt:MaximumMember cik0001588272:EquityMethodInvesteeControllingInvestmentMember 2025-12-31 0001588272 srt:MinimumMember cik0001588272:EquityMethodInvesteeControllingInvestmentMember 2025-12-31 0001588272 cik0001588272:BaseRateOf3MonthSofrMember 2025-12-31 0001588272 srt:AffiliatedEntityMember 2025-12-31 0001588272 cik0001588272:BoardOfDirectorsMember 2025-12-31 0001588272 cik0001588272:RealStateMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember us-gaap:ValuationTechniqueOptionPricingModelMember 2025-12-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-12-31 0001588272 Senior Secured Loans | Healthcare | CCS Medical, Inc (First Lien Term Loan) | Fixed + 1600 | 0.00% | 4/7/2026 2025-12-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan E) | 12% PIK | 12.00% | 12/31/2028 2025-12-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan F) | 12% PIK | 12.00% | 12/31/2028 2025-12-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan G) | 12% PIK | 12.00% | 12/31/2028 2025-12-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan H) | 12% PIK | 12.00% | 12/31/2028 2025-12-31 0001588272 Senior Secured Loans | Healthcare | Carestream Health, Inc. (First Lien Term Loan) | SOFR + 750 | 3.67% | 9/30/2027 2025-12-31 0001588272 Corporate Bonds | Media/Telecommunications | iHeartCommunications, Inc. | 10.88% | 5/1/2030 2025-12-31 0001588272 Corporate Bonds | Media/Telecommunications | iHeartCommunications, Inc. | 9.13% | 5/1/2029 2025-12-31 0001588272 Senior Secured Loans 2025-12-31 0001588272 Corporate Bonds 2025-12-31 0001588272 us-gaap:HealthcareSectorMember cik0001588272:SeniorSecuredLoansMember 2025-12-31 0001588272 cik0001588272:TelecommunicationServicesMember cik0001588272:SeniorSecuredLoansMember 2025-12-31 0001588272 Common Stocks | Bioplastics | PlantSwitch, Inc. (Series A-2) 2025-12-31 0001588272 LLC Interests | Real Estate | NexPoint Capital REIT LLC 2025-12-31 0001588272 LLC Interests | Consumer Products | US Gaming LLC 2025-12-31 0001588272 Common Stocks | Telecommunication Services | MidWave Wireless, Inc. 2025-12-31 0001588272 Common Stocks | Real Estate Investment Trust (REIT) | NexPoint Residential Trust Inc. 2025-12-31 0001588272 Common Stocks | Real Estate | IQHQ Inc. 2025-12-31 0001588272 Common Stocks | Real Estate | Nexpoint Real Estate Finance Inc. 2025-12-31 0001588272 Common Stocks | Financials | American Banknote Corp. 2025-12-31 0001588272 Common Stocks | Energy | Talos Energy 2025-12-31 0001588272 us-gaap:RealEstateSectorMember cik0001588272:InvestmentAffiliatedAndUnaffiliatedIssuerMember us-gaap:CommonStockMember 2025-12-31 0001588272 cik0001588272:LlcInterestsMember 2025-12-31 0001588272 us-gaap:CommonStockMember 2025-12-31 0001588272 Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) 2025-12-31 0001588272 Preferred Stocks | Financials | 777 Partners LLC | 10.00% 2025-12-31 0001588272 Preferred Stocks | Financials | United Fidelity Bank FSB | 7.00% 2025-12-31 0001588272 Preferred Stocks | Healthcare | Apnimed Inc. 2025-12-31 0001588272 Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) 2025-12-31 0001588272 Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) 2025-12-31 0001588272 us-gaap:HealthcareSectorMember us-gaap:InvestmentUnaffiliatedIssuerMember 2025-12-31 0001588272 us-gaap:InvestmentUnaffiliatedIssuerMember 2025-12-31 0001588272 us-gaap:FinancialServicesSectorMember us-gaap:PreferredStockMember 2025-12-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MinimumMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MaximumMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:WeightedAverageMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember srt:MaximumMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember srt:WeightedAverageMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MinimumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MaximumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:MaximumMember us-gaap:ValuationTechniqueOptionPricingModelMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MaximumMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:WeightedAverageMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember srt:MinimumMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember srt:MaximumMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember srt:MinimumMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MaximumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember srt:MinimumMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember srt:MaximumMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-12-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MaximumMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-12-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:MinimumMember us-gaap:ValuationTechniqueOptionPricingModelMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:MaximumMember us-gaap:ValuationTechniqueOptionPricingModelMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:WeightedAverageMember us-gaap:ValuationTechniqueOptionPricingModelMember 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MinimumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-12-31 0001588272 cik0001588272:AffiliatedInvestmentsMember 2026-03-31 0001588272 cik0001588272:NonControlledOrNonAffiliatedInvestmentsMember 2026-03-31 0001588272 us-gaap:RelatedPartyMember 2026-03-31 0001588272 cik0001588272:LibertyCloHoldcoLtdMember 2026-03-31 0001588272 cik0001588272:FirstQuarterTenderOfferMember 2026-03-31 0001588272 cik0001588272:MarchThirtyFirstTwoThousandAndTwentyNineMember 2026-03-31 0001588272 cik0001588272:ExpenseLimitationAgreementMember us-gaap:RelatedPartyMember 2026-03-31 0001588272 us-gaap:MoneyMarketFundsMember 2026-03-31 0001588272 cik0001588272:AdvisoryFeesAndAdministrationFeesMember us-gaap:RelatedPartyMember 2026-03-31 0001588272 cik0001588272:ExpenseLimitationAgreementMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AmericanBanknoteCorpMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:PlantswitchInc.Member us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UnitedFidelityBankFsbMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansTwoMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CcsMedicalIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UsGamingLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansFourMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansThreeMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:NexpointCapitalReitLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2026-03-31 0001588272 cik0001588272:BioplasticsMember 2026-03-31 0001588272 cik0001588272:MediaAndTelecommunicationsMember 2026-03-31 0001588272 us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:RealEstateMember 2026-03-31 0001588272 cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 cik0001588272:ConsumerProductsMember 2026-03-31 0001588272 us-gaap:FinancialServiceMember 2026-03-31 0001588272 cik0001588272:RealEstateInvestmentTrustsMember 2026-03-31 0001588272 cik0001588272:LlcMemberInterestsMember 2026-03-31 0001588272 us-gaap:CommonStockMember 2026-03-31 0001588272 us-gaap:CorporateBondSecuritiesMember 2026-03-31 0001588272 us-gaap:PreferredStockMember 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansFirstLienMember 2026-03-31 0001588272 country:US 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2026-03-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:CommonStockNavMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:PreferredStockMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember us-gaap:RealEstateMember 2026-03-31 0001588272 cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2026-03-31 0001588272 cik0001588272:CorporateBondsMember cik0001588272:MediaAndTelecommunicationsMember 2026-03-31 0001588272 us-gaap:CommonStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember cik0001588272:RealEstateInvestmentTrustReitsMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel2Member us-gaap:PreferredStockMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member us-gaap:PreferredStockMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:FairValueInputsLevel1Member cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2026-03-31 0001588272 us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 srt:MaximumMember cik0001588272:EquityMethodInvesteeControllingInvestmentMember 2026-03-31 0001588272 srt:MinimumMember cik0001588272:EquityMethodInvesteeControllingInvestmentMember 2026-03-31 0001588272 cik0001588272:BaseRateOf3MonthSofrMember 2026-03-31 0001588272 srt:AffiliatedEntityMember 2026-03-31 0001588272 cik0001588272:RealStateMember 2026-03-31 0001588272 cik0001588272:BoardOfDirectorsMember 2026-03-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember us-gaap:ValuationTechniqueOptionPricingModelMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 Senior Secured Loans | Healthcare | CCS Medical, Inc (First Lien Term Loan) | Fixed + 1600 | 0.00% | 4/7/2026 2026-03-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan E) | 12% PIK | 12.00% | 12/31/2028 2026-03-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan F) | 12% PIK | 12.00% | 12/31/2028 2026-03-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan G) | 12% PIK | 12.00% | 12/31/2028 2026-03-31 0001588272 Senior Secured Loans | Telecommunication Services | MidWave Wireless, Inc. (First Lien Term Loan H) | 12% PIK | 12.00% | 12/31/2028 2026-03-31 0001588272 Corporate Bonds | Media/Telecommunications | iHeartCommunications, Inc. | 10.88% | 5/1/2030 2026-03-31 0001588272 Corporate Bonds | Media/Telecommunications | iHeartCommunications, Inc. | 9.13% | 5/1/2029 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember 2026-03-31 0001588272 cik0001588272:TelecommunicationServicesMember cik0001588272:SeniorSecuredLoansMember 2026-03-31 0001588272 cik0001588272:MediaAndTelecommunicationsMember us-gaap:CorporateBondSecuritiesMember 2026-03-31 0001588272 Common Stocks | Bioplastics | PlantSwitch, Inc. (Series A-2) 2026-03-31 0001588272 LLC Interests | Real Estate | NexPoint Capital REIT LLC 2026-03-31 0001588272 LLC Interests | Consumer Products | US Gaming LLC 2026-03-31 0001588272 Common Stocks | Telecommunication Services | MidWave Wireless, Inc. 2026-03-31 0001588272 Common Stocks | Real Estate Investment Trust (REIT) | NexPoint Residential Trust Inc. 2026-03-31 0001588272 Common Stocks | Real Estate | IQHQ Inc. 2026-03-31 0001588272 Common Stocks | Real Estate | Nexpoint Real Estate Finance Inc. 2026-03-31 0001588272 Common Stocks | Financials | American Banknote Corp. 2026-03-31 0001588272 cik0001588272:LlcInterestsMember 2026-03-31 0001588272 cik0001588272:InvestmentAffiliatedAndUnaffiliatedIssuerMember us-gaap:CommonStockMember 2026-03-31 0001588272 us-gaap:RealEstateSectorMember cik0001588272:InvestmentAffiliatedAndUnaffiliatedIssuerMember us-gaap:CommonStockMember 2026-03-31 0001588272 Preferred Stocks | Healthcare | Apnimed Inc. (Series C-2) 2026-03-31 0001588272 Preferred Stocks | Healthcare | Apnimed Inc. 2026-03-31 0001588272 Preferred Stocks | Financials | United Fidelity Bank FSB | 7.00% 2026-03-31 0001588272 Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B-1 Preferred Shares) 2026-03-31 0001588272 Preferred Stocks | Healthcare | Sapience Therapeutics Inc. (Series B Preferred Shares) 2026-03-31 0001588272 Preferred Stocks | Financials | 777 Partners LLC | 10.00% 2026-03-31 0001588272 Warrants | Total Investments 2026-03-31 0001588272 cik0001588272:BdcUsGamingHoldcoLlcMember 2026-03-31 0001588272 cik0001588272:BdcSapienceHoldcoLlcMember 2026-03-31 0001588272 us-gaap:HealthcareSectorMember us-gaap:PreferredStockMember us-gaap:InvestmentUnaffiliatedIssuerMember 2026-03-31 0001588272 us-gaap:FinancialServicesSectorMember us-gaap:PreferredStockMember 2026-03-31 0001588272 us-gaap:PreferredStockMember 2026-03-31 0001588272 Total Investments | Cash Equivalents 2026-03-31 0001588272 Total Investments | Other Assets & Liabilities net 2026-03-31 0001588272 Net Assets 2026-03-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember srt:MaximumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:MinimumMember us-gaap:ValuationTechniqueOptionPricingModelMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MinimumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MaximumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:WeightedAverageMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember srt:MinimumMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember srt:MaximumMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MinimumMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:MaximumMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:MaximumMember 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember srt:MinimumMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember srt:MaximumMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MinimumMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MaximumMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember srt:MinimumMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember srt:MaximumMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember srt:WeightedAverageMember 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:WeightedAverageMember 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:MaximumMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:MaximumMember us-gaap:ValuationTechniqueOptionPricingModelMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember srt:WeightedAverageMember us-gaap:ValuationTechniqueOptionPricingModelMember 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember srt:WeightedAverageMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-03-31 0001588272 cik0001588272:AdviserMember 2026-03-31 0001588272 cik0001588272:AffiliatedInvestmentsMember 2025-01-01 2025-03-31 0001588272 cik0001588272:NonControlledOrNonAffiliatedInvestmentsMember 2025-01-01 2025-03-31 0001588272 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0001588272 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0001588272 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0001588272 cik0001588272:AdviserMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:FinancialsMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember us-gaap:HealthCareMember 2025-01-01 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2025-01-01 2025-03-31 0001588272 cik0001588272:AffiliatedInvestmentsMember 2026-01-01 2026-03-31 0001588272 cik0001588272:NonControlledOrNonAffiliatedInvestmentsMember 2026-01-01 2026-03-31 0001588272 cik0001588272:NextPointAdvisorsL.pMember 2026-01-01 2026-03-31 0001588272 cik0001588272:LibertyCloHoldcoLtdMember 2026-01-01 2026-03-31 0001588272 cik0001588272:NexpointCapitalReitLlcLlcInterestsMember 2026-01-01 2026-03-31 0001588272 cik0001588272:NexpointResidentialTrustInc.Member 2026-01-01 2026-03-31 0001588272 cik0001588272:NexpointRealEstateFinanceInc.Member 2026-01-01 2026-03-31 0001588272 cik0001588272:FirstQuarterTenderOfferMember 2026-01-01 2026-03-31 0001588272 us-gaap:RetainedEarningsMember 2026-01-01 2026-03-31 0001588272 us-gaap:CommonStockMember 2026-01-01 2026-03-31 0001588272 us-gaap:AdditionalPaidInCapitalMember 2026-01-01 2026-03-31 0001588272 cik0001588272:MarchThirtyFirstTwoThousandAndTwentyNineMember 2026-01-01 2026-03-31 0001588272 cik0001588272:AdviserMember 2026-01-01 2026-03-31 0001588272 cik0001588272:ExpenseLimitationAgreementMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansThreeMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:NexpointCapitalReitLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansTwoMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UnitedFidelityBankFsbMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:PlantswitchInc.Member us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AmericanBanknoteCorpMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UsGamingLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansFourMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CcsMedicalIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2026-01-01 2026-03-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2026-01-01 2026-03-31 0001588272 cik0001588272:InvestmentsByIndustryMember 2026-01-01 2026-03-31 0001588272 cik0001588272:TypeOfInvestmentDebtOrEquityMember 2026-01-01 2026-03-31 0001588272 cik0001588272:InvestmentsByGeographyMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:FinancialsMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember us-gaap:HealthCareMember 2026-01-01 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2026-01-01 2026-03-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-01-01 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember us-gaap:ValuationTechniqueOptionPricingModelMember 2026-01-01 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-01-01 2026-03-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2026-01-01 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2026-01-01 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2026-01-01 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2026-01-01 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueOptionPricingModelMember 2026-01-01 2026-03-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:ValuationTechniqueDiscountedCashFlowMember 2026-01-01 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember 2026-01-01 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember 2026-01-01 2026-03-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember 2026-01-01 2026-03-31 0001588272 Preferred Stocks | Financials | United Fidelity Bank FSB | 7.00% 2026-01-01 2026-03-31 0001588272 Preferred Stocks | Financials | 777 Partners LLC | 10.00% 2026-01-01 2026-03-31 0001588272 Preferred Stocks | Financials | 777 Partners LLC | 10.00% 2024-01-01 2024-12-31 0001588272 cik0001588272:LibertyCloHoldcoLtdMember 2023-07-21 2023-07-21 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansTwoMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:NexpointCapitalReitLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:CcsMedicalIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksTwoMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansThreeMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:MidwaveWirelessIncMember cik0001588272:SeniorSecuredLoansMember cik0001588272:SeniorSecuredLoansFourMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AmericanBanknoteCorpMember us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:PlantswitchInc.Member us-gaap:CommonStockMember cik0001588272:CommonStockOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:AprimedIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SevenSevenSevenPartnersLlcMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UsGamingLlcMember cik0001588272:LlcInterestsMember cik0001588272:LlcInterestsOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:SapienceTherapauticsIncMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:FairValueInputsLevel3Member cik0001588272:UnitedFidelityBankFsbMember us-gaap:PreferredStockMember cik0001588272:PreferredStocksOneMember 2025-01-01 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-01-01 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-01-01 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2025-01-01 2025-12-31 0001588272 cik0001588272:LlcInterestsMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-01-01 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember us-gaap:ValuationTechniqueOptionPricingModelMember 2025-01-01 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputEnterpriseValueMember cik0001588272:ValuationTechniqueTransactionIndicationOfValueMember 2025-01-01 2025-12-31 0001588272 us-gaap:PreferredStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputPricePerShareMember cik0001588272:ValuationTechniqueIndicativeBrokerQuoteMember 2025-01-01 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputEbitdaMultipleMember cik0001588272:ValuationTechniqueMultipleAnalysisMember 2025-01-01 2025-12-31 0001588272 cik0001588272:SeniorSecuredLoansMember us-gaap:FairValueInputsLevel3Member us-gaap:MeasurementInputOptionVolatilityMember us-gaap:ValuationTechniqueOptionPricingModelMember 2025-01-01 2025-12-31 0001588272 us-gaap:CommonStockMember us-gaap:FairValueInputsLevel3Member cik0001588272:MeasurementInputUnadjustedPriceMember 2025-01-01 2025-12-31 0001588272 cik0001588272:JuneThirtyTwoThousandAndTwentyEightMember 2025-06-30 2025-06-30 0001588272 cik0001588272:JuneThirtyTwoThousandAndTwentyEightMember 2025-06-30 0001588272 cik0001588272:SeptemberThirtyTwoThousandAndTwentyEightMember 2025-09-30 2025-09-30 0001588272 cik0001588272:SeptemberThirtyTwoThousandAndTwentyEightMember 2025-09-30 0001588272 cik0001588272:DecemberThirtyFirstTwoThousandAndTwentyEightMember 2025-12-31 2025-12-31 0001588272 cik0001588272:MarchThirtyFirstTwoThousandAndTwentyEightMember 2025-03-31 2025-03-31 0001588272 cik0001588272:MarchThirtyFirstTwoThousandAndTwentyEightMember 2025-03-31 0001588272 cik0001588272:MarchThirtyFirstTwoThousandAndTwentySevenMember 2024-03-31 2024-03-31 0001588272 cik0001588272:MarchThirtyFirstTwoThousandAndTwentySevenMember 2024-03-31 0001588272 cik0001588272:JuneThirtyTwoThousandAndTwentySevenMember 2024-06-30 2024-06-30 0001588272 cik0001588272:JuneThirtyTwoThousandAndTwentySevenMember 2024-06-30 0001588272 cik0001588272:SeptemberThirtyTwoThousandAndTwentySevenMember 2024-09-30 2024-09-30 0001588272 cik0001588272:SeptemberThirtyTwoThousandAndTwentySevenMember 2024-09-30 0001588272 cik0001588272:DecemberThirtyFirstTwoThousandAndTwentySevenMember 2024-12-31 2024-12-31 0001588272 cik0001588272:ExpirationMember 2023-03-31 0001588272 cik0001588272:JuneThirtyTwoThousandAndTwentySixMember 2023-06-30 2023-06-30 0001588272 cik0001588272:JuneThirtyTwoThousandAndTwentySixMember 2023-06-30 0001588272 cik0001588272:SeptemberThirtyTwoThousandAndTwentySixMember 2023-09-30 2023-09-30 0001588272 cik0001588272:SeptemberThirtyTwoThousandAndTwentySixMember 2023-09-30 0001588272 cik0001588272:DecemberThirtyFirstTwoThousandAndTwentySixMember 2023-12-31 0001588272 cik0001588272:DecemberThirtyFirstTwoThousandAndTwentySixMember 2023-12-31 2023-12-31 0001588272 cik0001588272:DecemberThirtyFirstTwoThousandAndTwentySevenMember 2024-12-31 0001588272 us-gaap:CommonStockMember 2024-12-31 0001588272 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001588272 us-gaap:RetainedEarningsMember 2024-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2024-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2024-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2024-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember us-gaap:HealthCareMember 2024-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2024-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2024-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2024-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2024-12-31 0001588272 us-gaap:InvestmentsMember 2024-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:FinancialsMember 2024-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:FinancialsMember 2025-03-31 0001588272 us-gaap:InvestmentsMember 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2025-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2025-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember us-gaap:HealthCareMember 2025-03-31 0001588272 us-gaap:RetainedEarningsMember 2025-03-31 0001588272 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001588272 us-gaap:CommonStockMember 2025-03-31 0001588272 cik0001588272:NexpointRealEstateFinanceInc.Member 2025-12-31 0001588272 cik0001588272:NexpointCapitalReitLlcLlcInterestsMember 2025-12-31 0001588272 cik0001588272:NexpointResidentialTrustInc.Member 2025-12-31 0001588272 us-gaap:RetainedEarningsMember 2025-12-31 0001588272 us-gaap:AdditionalPaidInCapitalMember 2025-12-31 0001588272 us-gaap:CommonStockMember 2025-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:InvestmentsMember 2025-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2025-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2025-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2025-12-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2025-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember us-gaap:HealthCareMember 2025-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:FinancialsMember 2025-12-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember cik0001588272:ConsumerProductsMember 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:BioplasticsMember 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember us-gaap:HealthCareMember 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:LlcInterestsMember us-gaap:RealEstateMember 2026-03-31 0001588272 us-gaap:InvestmentsMember cik0001588272:SeniorSecuredLoansMember cik0001588272:TelecommunicationServicesMember 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:CommonStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:InvestmentsMember 2026-03-31 0001588272 us-gaap:InvestmentsMember us-gaap:PreferredStockMember cik0001588272:FinancialsMember 2026-03-31 0001588272 us-gaap:RetainedEarningsMember 2026-03-31 0001588272 us-gaap:AdditionalPaidInCapitalMember 2026-03-31 0001588272 us-gaap:CommonStockMember 2026-03-31 0001588272 cik0001588272:NexpointResidentialTrustInc.Member 2026-03-31 0001588272 cik0001588272:NexpointCapitalReitLlcLlcInterestsMember 2026-03-31 0001588272 cik0001588272:NexpointRealEstateFinanceInc.Member 2026-03-31 iso4217:USD xbrli:shares xbrli:pure utr:Day iso4217:USD xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form

10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED March 31, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM

COMMISSION FILE NUMBER:

814-01074

NexPoint Capital, Inc.

(Exact name of registrant as specified in its charter)


Delaware		38-3926499
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

300 Crescent Court, Suite 700
Dallas, Texas		75201
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (972)

628-4100

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $0.001 per share

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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and emerging growth company” in Rule

12b-2

of the Exchange Act.

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 is a shell company (as defined in Rule

12b-2

of the Exchange Act). Yes ☐ No ☒

As of March 31, 2026, the Registrant had 8,325,126 shares of common stock, $0.001 par value, outstanding.

Part I – Financial Information

Item 1.

Financial Statements

NexPoint Capital, Inc.

Consolidated Statements of Assets and Liabilities


	March 31, 2026 (Unaudited)			December 31, 2025
Assets
Unaffiliated investments, at fair value (cost of $25,813,781 and $27,423,302, respectively)	$	30,013,779		$	30,468,925
Affiliated investments, at fair value (cost of $8,427,683 and $8,427,697, respectively) (1)		6,739,759			7,122,475
Cash and cash equivalents		549,614			352,412
Dividends and interest receivable		27,731			25,672
Receivable from Adviser (2)		130,699			118,906
Prepaid expenses		7,776			10,748
Deferred tax asset (3)		0			70,830

Total assets		37,469,358			38,169,968


Liabilities
Payable for fund shares repurchased		1,573			6,604
Payable to Adviser (2)		222,600			226,186
Accrued expenses and other liabilities		261,792			339,971
Distributions payable		749,261			752,341
Deferred tax liability (3)		139,178			106,932

Total liabilities		1,374,404			1,432,034


Commitments and contingencies (4)

Net assets
Preferred stock, $0.001 par value (25,000,000 shares authorized, 0 shares issued and outstanding)		—			—
Common stock, $0.001 par value (200,000,000 shares authorized, 8,325,126 and 8,359,344 shares issued and outstanding, respectively)		8,325			8,359
Paid-in capital in excess of par		72,095,380			72,231,634
Distributable earnings (accumulated loss)		(36,008,751	)		(35,502,059	)

Total net assets	$	36,094,954		$	36,737,934

Net asset value per share of common stock	$	4.34		$	4.39

(1)	See Note 9 for a discussion of affiliated investments.

(2)	See Note 4 for a discussion of related party transactions and arrangements.

(3)	See Note 5 for a discussion of the deferred tax asset/liability.

(4)	See Note 4 and Note 7 for a discussion of the commitments and contingencies of the Company (as defined in Note 1).

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Statements of Operations

(Unaudited)


	Three Months Ended March 31,
	2026			2025
Investment income:
Interest	$	188,729		$	245,492
Interest paid-in-kind		47,123			64,389
Dividend income from affiliated investments (1)		225,241			331,553
Other income		—			8,582

Total investment income		461,093			650,016
Expenses:
Investment advisory fees (2)		186,661			224,978
Custodian and accounting service fees		76,341			76,380
Administration fees (2)		35,938			43,253
Stock transfer fee		37,397			44,430
Audit and tax fees		48,861			44,993
Reports to stockholders		31,493			29,582
Other expenses		19,460			21,253
Legal fees		10,182			12,329
Directors’ fees (2)		3,710			4,818

Total expenses		450,043			502,016
Expenses (waived) or recouped by the Adviser (2)		(130,699	)		(120,992	)

Net expenses		319,344			381,024

Net investment income before income taxes		141,749			268,992
Income tax expense (benefit) (3)		—			(24,832	)

Net investment income (loss)		141,749			293,824

Net realized and unrealized gains (losses) on investments:
Net realized gain (loss) on:
Unaffiliated investments		(567,762	)		1,165
Affiliated investments (1)		(14	)		(12	)

Net change in realized gains (losses)		(567,776	)		1,153
Net change in unrealized appreciation (depreciation) on:
Unaffiliated investments		1,154,375			(1,007,870	)
Affiliated investments (1)		(382,702	)		(362,046	)
Income tax expense (benefit) (3)		103,076			—

Net change in unrealized appreciation (depreciation), net of deferred taxes		668,597			—

Net realized and unrealized gains (losses)		100,821			(1,368,763	)

Net increase (decrease) in net assets resulting from operations		242,570			(1,074,939	)

Per share information - basic and diluted per common share
Net investment income:	$	0.02		$	0.03
Earnings (loss) per share:	$	0.03		$	(0.12	)
Weighted average shares outstanding:		8,395,228			8,726,914

(1)	See Note 9 for a discussion of affiliated investments.

(2)	See Note 4 for a discussion of related party transactions and arrangements.

(3)	See Note 5 for a discussion of income tax expense.

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Statements of Changes in Net Assets

(Unaudited)


	Common Stock
	Shares			Par Amount			Paid in Capital in Excess of Par			Distributable Earnings			Total Net Assets
Balance at December 31, 2025		8,359,344		$	8,359		$	72,231,634		$	(35,502,059	)	$	36,737,934
Increase (decrease) in net assets resulting from operations
Net investment income (loss)		—			—			—			141,749			141,749
Net realized gain (loss) on investments		—			—			—			(567,776	)		(567,776	)
Net change in unrealized appreciation (depreciation) on investments		—			—			—			668,597			668,597
Shareholder distributions:
Issuance of common stock		—			—			—			—			—
Repurchase of common stock		(84,458	)		(84	)		(367,305	)		—			(367,389	)
Reinvestment of common stock		50,240			50			231,051			—			231,101
Distributions to stockholders		—			—			—			(749,262	)		(749,262	)

Total increase (decrease) for the three months ended March 31, 2026		(34,218	)		(34	)		(136,254	)		(506,692	)		(642,980	)

Balance at March 31, 2026		8,325,126		$	8,325		$	72,095,380		$	(36,008,751	)	$	36,094,954

Distributions to stockholders per share		—		$	—		$	—		$	0.09		$	0.09

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Statements of Changes in Net Assets

(Unaudited)


	Common Stock
	Shares			Par Amount			Paid in Capital in Excess of Par			Distributable Earnings			Total Net Assets
Balance at December 31, 2024		8,695,640		$	8,695		$	77,183,988		$	(31,916,413	)	$	45,276,270
Increase (decrease) in net assets resulting from operations
Net investment income (loss)		—			—			—			293,824			293,824
Net realized gain (loss) on investments		—			—			—			1,153			1,153
Net change in unrealized appreciation (depreciation) on investments		—			—			—			(1,369,916	)		(1,369,916	)
Shareholder distributions:
Issuance of common stock		—			—			—			—			—
Repurchase of common stock		(149,885	)		(150	)		(780,750	)		—			(780,900	)
Reinvestment of common stock		44,112			45			246,101			—			246,146
Distributions to stockholders		—			—			—			(786,537	)		(786,537	)

Total increase (decrease) for the three months ended March 31, 2025		(105,773	)		(105	)		(534,649	)		(1,861,476	)		(2,396,230	)

Balance at March 31, 2025		8,589,867		$	8,590		$	76,649,339		$	(33,777,889	)	$	42,880,040

Distributions to stockholders per share		—		$	—		$	—		$	0.09		$	0.09

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended March 31,
	2026			2025
Cash flows provided by (used in) operating activities
Net increase (decrease) in net assets resulting from operations	$	242,570		$	(1,074,939	)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of investment securities		—			(245	)
Payment-in-kind on Unaffiliated investments		(47,123	)		(64,389	)
Proceeds from sales and principal repayments of Unaffiliated investment securities		1,113,330			15,213
Net realized gain (loss) on Unaffiliated investments		567,762			(1,165	)
Net realized (gain) loss on Affiliated investments		14			12
Net change in unrealized (appreciation) depreciation on investments		(771,673	)		1,369,916
Amortization of premium/discount, net		(24,449	)		(41,681	)
Change in operating assets and liabilities:
(Increase) decrease in dividends and interest receivable		(2,059	)		(4,496	)
(Increase) decrease in receivable from Adviser		(11,793	)		(3,269	)
(Increase) decrease in prepaid expenses		2,972			(10,072	)
(Increase) decrease in deferred tax asset		70,830			(24,832	)
(Increase) decrease in other receivables		—			22,137
Increase (decrease) in payable to Adviser		(3,586	)		(49,318	)
Increase (decrease) in accrued expenses and other liabilities		(78,178	)		118,834
Increase (decrease) in deferred tax liability		32,246			—

Net cash flows provided by (used in) operating activities		1,090,863			251,706


Cash flows provided by (used in) financing activities
Repurchase of common stock, net of payable		(372,420	)		(23,608	)
Distributions paid in cash, net of payable		(521,241	)		(536,462	)

Net cash flows (used in) financing activities		(893,661	)		(560,070	)

Net increase (decrease) in cash and cash equivalents		197,202			(308,364	)


Cash and cash equivalents
Beginning of the year		352,412			1,671,503

End of the period	$	549,614		$	1,363,139


Supplemental disclosure and non-cash operating and financing activities
Paid-in-kind interest income	$	47,123		$	(64,389	)
Reinvestment of distributions paid	$	231,101		$	246,146
Local and excise taxes paid	$	1,799		$	6,917

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Schedule of Investments

As of March 31, 2026


Portfolio Company (1) (2)	Interest Rate			Base Rate Floor			Maturity Date		Principal Amount		Amortized Cost (3)		Fair Value

Senior Secured Loans – 12.6% (4)
Healthcare – 8.3%
CCS Medical, Inc (First Lien Term Loan) (5) (6) (7)		Fixed + 1600			0.00	%		4/7/2026	$	3,000,000	$	2,999,546	$	3,000,000

Telecommunication Services – 4.3%
MidWave Wireless, Inc. (First Lien Term Loan E) (6) (7)		12% PIK			12.00	%		12/31/2028		1,202,179		1,202,179		1,195,086
MidWave Wireless, Inc. (First Lien Term Loan F) (6) (7)		12% PIK			12.00	%		12/31/2028		284,608		284,608		282,928
MidWave Wireless, Inc. (First Lien Term Loan G) (6) (7)		12% PIK			12.00	%		12/31/2028		50,847		50,847		50,547
MidWave Wireless, Inc. (First Lien Term Loan H) (6) (7)		12% PIK			12.00	%		12/31/2028		47,441		47,441		47,161

														1,575,722


Total Senior Secured Loans														4,575,722

Corporate Bonds – 0.6%
Media/Telecommunications – 0.6%
iHeartCommunications, Inc. (8)					9.13	%		5/1/2029		110,967		109,915		100,875
iHeartCommunications, Inc. (8)					10.88	%		5/1/2030		171,258		167,710		108,503


Total Corporate Bonds														209,378


									Shares
Common Stocks – 32.5%
Bioplastics – 7.4%
PlantSwitch, Inc. (Series A-2) (6) (7)										1,128,553		2,192,329		2,653,228

Financials – 3.4%
American Banknote Corp. (6) (7) (9) (10)										750,000		2,062,912		1,226,250

Real Estate – 3.5%
IQHQ, Inc. (13)										87,350		1,310,250		365,123
Nexpoint Real Estate Finance, Inc. (11)										65,670		1,100,835		884,548

														1,249,671

Real Estate Investment Trust (REIT) – 1.6%
NexPoint Residential Trust, Inc. (8) (11)										23,409		638,755		585,225

Telecommunication Services – 16.6%
MidWave Wireless, Inc. (6) (7) (9)										14,035		1,599,990		5,999,401


Total Common Stocks														11,713,775

LLC Interests – 24.4%
Consumer Products – 9.8%
US Gaming, LLC (6) (7) (9) (10)										2,000		2,233,207		3,517,200

Real Estate – 14.6%
NexPoint Capital REIT, LLC (6) (7) (11)										789		6,688,093		5,269,986


Total LLC Interests														8,787,186

	Preferred Dividend Rate
Preferred Stocks – 31.8%
Financials – 1.4%
777 Partners, LLC (6) (7)		10.00	%							750		750,000		—
United Fidelity Bank FSB (6) (7)		7.00	%							1,000		1,000,000		500,000

														500,000

Healthcare – 30.4%
Apnimed, Inc. (6) (7)										135,122		1,199,993		1,770,097
Apnimed, Inc. (Series C-2) (6) (7)										47,065		522,469		640,554
Sapience Therapeutics, Inc. (Series B Preferred Shares) (6) (7) (10)										1,111,111		4,000,385		3,877,574
Sapience Therapeutics, Inc. (Series B-1 Preferred Shares) (6) (7) (10)										1,619,048		4,080,000		4,679,252

														10,967,477


Total Preferred Stocks														11,467,477

Total Investments – 101.9%											$	34,241,464	$	36,753,538

Cash Equivalents – 1.5% (12)													$	537,207

Other Assets & Liabilities, net – (3.4%)													$	(1,195,791	)

Net Assets – 100.0%													$	36,094,954

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Schedule of Investments (continued)

As of March 31, 2026

(Unaudited)

(1)

Unless otherwise noted, the Company did not “control” and was not an “affiliated person” of any of its portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned 25% or more of its voting securities or had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. Additionally, companies under common control (e.g., companies with a common owner of greater than 25% of their respective voting securities) are affiliates under the 1940 Act.

(2)	All investments are denominated in United States Dollars.

(3)	Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.

(4)

Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by the Federal Reserve Bank such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the coupon rate. Rate shown represents the actual rate at March 31, 2026. Senior secured loans, while exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.

(5)	The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at March 31, 2026 was 3.68%.

(6)

Represents fair value as determined by the Adviser pursuant to the policies and procedures approved by the Board of Directors (the “Board”). The Board has designated the Adviser as “valuation designee” for the Company pursuant to Rule

2a-5

of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,709,264 or 94.4% of net assets were fair valued under the Company’s valuation procedures as of March 31, 2026.

(7)	Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.

(8)

The investment is not a qualifying asset under Section 55 of the 1940 Act. A business development company, such as the Company (“BDC”), may not acquire any asset other than a qualifying asset, unless at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets.

Non-qualifying

assets represented 2.2% of the Company’s total assets as of March 31, 2026.

(9)	Non-income producing security.

(10)	All or a portion of this security is held through a holding company (See Note 1).

(11)	Represents an affiliated issuer. Assets with a total aggregate fair market value of $6,739,759, or 18.7% of net assets, were affiliated with the Company as of March 31, 2026. See Note 9.

(12)	State Street U.S. Government Money Market Fund.

(13)	Securities with a total aggregate value of $365,123, or 1.0% of net assets, were valued using the issuer’s fair market value NAV as a practical expedient under ASC 820. Please see Notes to Consolidated Financial Statements for an explanation of this hierarchy.

Glossary

PIK	Payment-in-Kind

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Schedule of Investments

As of December 31, 2025


Portfolio Company (1) (2)	Interest Rate		Base Rate Floor			Maturity Date		Principal Amount		Amortized Cost (3)		Fair Value

Senior Secured Loans – 14.6% (4)
Healthcare – 10.4%
Carestream Health, Inc. (First Lien Term Loan) (5)		SOFR + 750		3.67	%		9/30/2027	$	1,579,575	$	1,459,426	$	811,507
CCS Medical, Inc (First Lien Term Loan) (5) (6) (7)		Fixed + 1600		0.00	%		4/7/2026		3,000,000		2,992,732		3,000,000

													3,811,507

Telecommunication Services – 4.2%
MidWave Wireless, Inc. (First Lien Term Loan E) (6) (7)		12% PIK		12.00	%		12/31/2028		1,166,439		1,166,439		1,158,740
MidWave Wireless, Inc. (First Lien Term Loan F) (6) (7)		12% PIK		12.00	%		12/31/2028		276,146		276,146		274,324
MidWave Wireless, Inc. (First Lien Term Loan G) (6) (7)		12% PIK		12.00	%		12/31/2028		49,335		49,335		49,010
MidWave Wireless, Inc. (First Lien Term Loan H) (6) (7)		12% PIK		12.00	%		12/31/2028		46,030		46,030		45,726

													1,527,800


Total Senior Secured Loans													5,339,307

Corporate Bonds – 0.7%
Media/Telecommunications – 0.7%
iHeartCommunications, Inc. (8)				9.13	%		5/1/2029		110,967		108,484		106,963
iHeartCommunications, Inc. (8)				10.88	%		5/1/2030		171,258		163,600		148,143


Total Corporate Bonds													255,106


								Shares
Common Stocks – 32.9%
Bioplastics – 7.2%
PlantSwitch, Inc. (Series A-2) (6) (7)									1,128,553		2,192,329		2,653,228

Energy – 0.5%
Talos Energy									16,502		209,575		181,852

Financials – 3.1%
American Banknote Corp. (6) (7) (9) (10)									750,000		2,062,912		1,143,750

Real Estate – 3.5%
IQHQ, Inc. (13)									87,350		1,310,250		365,123
Nexpoint Real Estate Finance, Inc. (11)									65,670		1,100,849		924,616

													1,289,739

Real Estate Investment Trust (REIT ) – 1.9%
NexPoint Residential Trust, Inc. (8) (11)									23,409		638,755		704,611

Telecommunication Services – 16.7%
MidWave Wireless, Inc. (6) (7) (9)									14,035		1,599,990		6,149,576


Total Common Stocks													12,122,756

LLC Interests – 23.5%
Consumer Products – 8.5%
US Gaming, LLC (6) (7) (9) (10)									2,000		2,233,207		3,120,940

Real Estate – 15.0%
NexPoint Capital REIT , LLC (6) (7) (11)									789		6,688,093		5,493,248


Total LLC Interests													8,614,188

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Schedule of Investments (continued)

As of December 31, 2025


Portfolio Company (1) (2)	Preferred Dividend Rate			Shares		Amortized Cost (3)		Fair Value
Preferred Stocks – 30.7%
Financials – 1.4% 777 Partners, LLC (6) (7)		10.00	%		750		750,000		—
United Fidelity Bank FSB (6) (7)		7.00	%		1,000		1,000,000		500,000

									500,000

Healthcare – 29.3%
Apnimed, Inc. (6) (7)					135,122		1,199,993		1,599,844
Apnimed, Inc. (Series C-2) (6) (7)					47,065		522,469		603,373
Sapience Therapeutics, Inc. (Series B Preferred Shares) (6) (7) (10)					1,111,111		4,000,385		3,877,574
Sapience Therapeutics, Inc. (Series B-1 Preferred Shares) (6) (7) (10)					1,619,048		4,080,000		4,679,252

									10,760,043


Total Preferred Stocks									11,260,043

Total Investments – 102.4%						$	35,850,999	$	37,591,400

Cash Equivalents – 0.1% (12)								$	54,571

Other Assets & Liabilities, net – (2.5%)								$	(908,037	)

Net Assets – 100.0%								$	36,737,934

(1)

(2)	All investments are denominated in United States Dollars.

(3)	Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.

(4)

Senior secured loans in which the Company invests generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread (unless otherwise identified, all senior secured loans carry a variable rate of interest). These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by the Federal Reserve Bank such as the Secured Overnight Financing Rate (“SOFR”) or (iii) the coupon rate. Rate shown represents the actual rate at December 31, 2025. Senior secured loans, while exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.

(5)	The interest rate on these investments is subject to a base rate of 3-Month SOFR, which at December 31, 2025 was 4.27%.

(6)

2a-5

of the 1940 Act. The Adviser considers fair valued securities to be securities for which market quotations are not readily available and these securities may be valued using a combination of observable and unobservable inputs. Securities with a total aggregate value of $34,348,585 or 93.5% of net assets were fair valued under the Company’s valuation procedures as of December 31, 2025.

(7)	Classified as Level 3 within the three-tier fair value hierarchy. Please see Note 2 for an explanation of this hierarchy, as well as a list of unobservable inputs used in the valuation of these instruments.

(8)

Non-qualifying

assets represented 2.5% of the Company’s total assets as of December 31, 2025.

(9)	Non-income producing security.

(10)	All or a portion of this security is held through a holding company (See Note 1).

(11)	Represents an affiliated issuer. Assets with a total aggregate fair market value of $7,122,475, or 19.4% of net assets, were affiliated with the Company as of December 31, 2025. See Note 9.

(12)	State Street U.S. Government Money Market Fund.

(13)	Securities with a total aggregate value of $365,123, or 1.0% of net assets, were valued using the issuer’s fair market value NAV as a practical expedient under ASC 820. Please see Notes to Consolidated Financial Statements for an explanation of this hierarchy.

Glossary

PIK	Payment-in-Kind

See Notes to Consolidated Financial Statements.

NexPoint Capital, Inc.

Consolidated Notes to Financial Statements (Unaudited)

Note 1 — Organization

NexPoint Capital, Inc. (the “Company”) is an externally managed,

non-diversified,

closed-end

management investment company that has elected to be regulated as a business development company (“BDC”) under the 1940 Act. The Company follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946

Financial Services - Investment Companies.

The Company’s investment objective is to generate current income and capital appreciation primarily through investments in middle-market healthcare companies, middle-market companies in

non-healthcare

sectors, syndicated floating rate debt of large public and nonpublic companies and collateralized loan obligations. The Company has elected to be treated for federal income tax purposes, and intends to qualify annually thereafter, as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). In this report, “we,” “us” and “our” refer to NexPoint Capital, Inc.

The Company was formed in Delaware on September 30, 2013 and formally commenced operations on September 2, 2014 upon satisfying the minimum offering requirement by raising gross proceeds of $10.0 million in connection with a private placement with NexPoint Advisors, L.P. (the “Adviser”), our external advisor. Prior to July 21, 2023, the Adviser controlled 2,549,002 total shares of common stock of the Company, including reinvestment of dividends, for a net amount of approximately $13.4 million. On July 21, 2023, pursuant to the terms of a Stock Purchase Agreement, Liberty CLO Holdco Ltd. (“Liberty”) purchased a total of 2,549,002 shares of the Company. As of March 31, 2026, Liberty controls 2,549,002 total shares of common stock of the Company, including reinvestment of dividends, for a net amount of approximately $11.1 million representing 30.6% of the Company’s currently issued and outstanding common stock, in aggregate.

The Company has retained the Adviser to manage certain aspects of its affairs on a

day-to-day

basis. NexPoint Securities, Inc. (the “Dealer Manager”), an entity under common ownership with the Adviser, served as the dealer manager of the Company’s continuous public offering prior to the termination of the offering. The Adviser and Dealer Manager are related parties and will receive fees and other compensation for services related to the investment and management of the Company’s assets and the continuous public offering. The Company’s continuous public offering ended on February 14, 2018.

Consolidation of Subsidiaries

The Company may make investments through wholly-owned subsidiaries (each a “Subsidiary” and together, the “Subsidiaries”). Such Subsidiaries will not be registered under the 1940 Act. However, the Company will wholly own and control any Subsidiaries. In addition, the Company does not intend to create or acquire primary control of any entity which primarily engages in investment activities in securities or other assets, other than entities wholly-owned or majority-owned by the Company.

As of March 31, 2026, there are two consolidated subsidiaries: the BDC Sapience Holdco, LLC and BDC US Gaming Holdco, LLC, (collectively, the “HoldCos”) formed under the laws of the State of Delaware on June 21, 2023 and March 15, 2024, respectively. The Consolidated Schedule of Investments, Consolidated Statements of Assets and Liabilities, Consolidated Statements of Operations, Consolidated Statements of Changes in Net Assets, Consolidated Statements of Cash Flows and Consolidated Financial Highlights of the Company include the accounts of the Subsidiaries. All inter-company accounts and transactions have been eliminated in the consolidation for the Company. As of March 31, 2026, total assets of the Company were

37,469,358 of which $6,255,394 or approximately 16.72%,

was held in BDC Sapience Holdco, LLC and

$1,288,337 or approximately 3.44%

was held in BDC US Gaming Holdco, LLC. Effective March 31, 2026, the Company elected to liquidate BDC AB Holdco, LLC.

Segment Reporting

An operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete

financial information available. The portfolio managers as a team have been identified as the CODM for the Company. Through their management, investment, and operating functions, the portfolio managers are responsible for assessing performance and making decisions about resource allocation for the Company. The CODM has determined that the Company has a single operating segment based on the fact that the CODM monitors the operating results of the Company as a whole and that the Company’s long-term strategic asset allocation is

pre-determined

in accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the Company’s portfolio managers as a team. The financial information provided to and reviewed by the CODM is consistent with that presented within the Company’s Consolidated Schedule of Investments, Consolidated Statements of Assets

and

Liabilities, Consolidated Statements of Operations, Consolidated Statements of Changes in Net Assets and Consolidated Financial Highlights.

Note 2 — Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form

10-Q

and Article 10 of Regulation

S-X.

The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2026. The interim financial data as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 is unaudited. In the opinion of management, the interim financial data includes all adjustments, consisting only of the normal recurring adjustments, necessary to a fair statement of the results for the interim periods.

Use of Estimates

The preparation of consolidated financial statements in conformity with 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 and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Statements of Cash Flows

Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Consolidated Statements of Cash Flows. The cash amount shown in the Consolidated Statements of Cash Flows is the amount included within the Company’s Consolidated Statements of Assets and Liabilities and includes cash on hand and cash equivalents in its custodian bank.

Cash and Cash Equivalents

The Company considers liquid assets deposited with a bank, money market funds, and certain short-term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Company expenses or purchase investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates fair value. The value of cash equivalents denominated in foreign currencies, if any, is determined by converting to U.S. dollars on the date of the Consolidated Statements of Assets and Liabilities. As of March 31, 2026 and December 31, 2025, the Company had cash and cash equivalents of $549,614 and $352,412, respectively. As of March 31, 2026 and December 31, 2025, $537,207 and $54,571 was held in the State Street U.S. Government Money Market Fund, and $12,407 and $297,841 was held in a custodial account with State Street Bank and Trust Company, respectively.

Securities Sold Short and Restricted Cash

The Company may sell securities short. A security sold short is a transaction in which the Company sells a security it does not own in anticipation that the market price of that security will decline. When the Company sells a security short, it must borrow the security sold short from a broker-dealer and deliver it to the buyer upon conclusion of the transaction. The Company may have to pay a fee to borrow particular securities and is often obligated to pay over any dividends or other payments received on such borrowed securities. Cash held as collateral for securities sold short is classified as restricted cash on the Consolidated Statements of Assets and Liabilities, when applicable. As of March 31, 2026 and December 31, 2025, there were no securities sold short and no securities held as collateral for securities sold short.

When securities are sold short, the Company intends to limit exposure to a possible market decline in the value of its portfolio companies through short sales of securities that the Adviser believes possess volatility characteristics similar to those being hedged. In addition, the Company may use short sales for

non-hedging

purposes to pursue its investment objective. Subject to the requirements of the 1940 Act and the Code, the Company will not make a short sale if, after giving effect to such sale, the market value of all securities sold short by the Company exceeds 25% of the value of its total assets.

Other Fee Income

Fee income may consist of origination/closing fees, amendment fees, administrative agent fees, transaction

break-up

fees and other miscellaneous fees. Origination fees, amendment fees, and other similar fees are

non-recurring

fee sources. Such fees are received on a transaction by transaction basis and do not constitute a regular stream of income. For the three months ended March 31, 2026 and March 31, 2025, the Company recognized $0 and $8,582 of fee income, respectively.

Fair Value of Financial Instruments

It is the Company’s policy to hold the investments at fair value. ASC Topic 820,

Fair Value Measurements and Disclosure

(“ASC Topic 820”) defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, which includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Pursuant to Rule

2a-5

under the Investment Company Act of 1940, as amended, the Board has designated the Adviser as the Company’s valuation designee to perform the fair valuation determination for securities and other assets held by the Company. The Company determines the net asset value of its investment portfolio each quarter, or more frequently as needed. Securities that are publicly-traded are valued at the reported closing price on the valuation date. Securities that are not publicly-traded are valued at fair value as determined in good faith by the Adviser as valuation designee, pursuant to board-approved policies and procedures. In connection with that determination, the Adviser will consider portfolio company valuations based on relevant inputs, including indicative dealer quotes, values of like securities, recent portfolio company consolidated financial statements and forecasts, and valuations prepared by third-party valuation services. Rule

2a-5

states that a market quotation is readily available 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. Market quotations may also not be “readily available” if a significant event occurs that causes the Adviser to believe that the market price of a security no longer represents the security’s current value at the time of the Company’s net asset value (“NAV”) determination.

With respect to investments for which market quotations are not readily available, the Adviser undertakes a multi-step valuation process each quarter, as described below:

•

The valuation process begins with each portfolio company or investment being initially valued by investment professionals of the Adviser responsible for credit monitoring or independent third party valuation firms.

•

Preliminary valuation conclusions are then documented and discussed with a committee comprised of certain senior management employees of the Adviser (the “Valuation Committee”) established by the Adviser to assist the Adviser in discharging its responsibilities as valuation designee.

•

The Audit and Qualified Legal Compliance Committee of the Board, in assistance of Board valuation oversight, reviews portfolio valuation, including oversight of valuations determined by the Adviser and the Valuation Committee pursuant to the policies and procedures approved by the Board.

•

At least once each quarter, the valuations for approximately one quarter of the portfolio investments that have been fair valued are reviewed by an independent valuation firm such that, over the course of a year, each material portfolio investment that has been fair valued shall have been reviewed by an independent valuation firm at least once.

•

Based on this information, the Adviser discusses valuations and determines the fair value of each investment in the portfolio in good faith pursuant to board-approved policies and procedures.

As of March 31, 2026, the Company held the following investments, for which a sufficient level of current, reliable market quotations were not available:


Instrument	Type	Fair Value
American Banknote Corp.	Common Stocks	$	1,226,250
MidWave Wireless, Inc.	Common Stocks		5,999,401
PlantSwitch, Inc.	Common Stocks		2,653,228
NexPoint Capital REIT, LLC	LLC Interests		5,269,986
US GAMING LLC	LLC Interests		3,517,200
Apnimed, Inc.	Preferred Stocks		1,770,097
Apnimed, Inc.	Preferred Stocks		640,554
Sapience Therapeutics, Inc.	Preferred Stocks		3,877,574
Sapience Therapeutics, Inc.	Preferred Stocks		4,679,252
United Fidelity Bank FSB	Preferred Stocks		500,000
CCS Medical, Inc.	Senior Secured Loans		3,000,000
MidWave Wireless, Inc.	Senior Secured Loans		1,195,086
MidWave Wireless, Inc.	Senior Secured Loans		282,928
MidWave Wireless, Inc.	Senior Secured Loans		47,161
MidWave Wireless, Inc.	Senior Secured Loans		50,547

As of December 31, 2025, the Company held the following investments, for which a sufficient level of current, reliable market quotations were not available:


Instrument	Type	Fair Value
American Banknote Corp .	Common Stocks	$	1,143,750
MidWave Wireless, Inc.	Common Stocks		6,149,576
PlantSwitch, Inc.	Common Stocks		2,653,228
NexPoint Capital REIT, LLC	LLC Interests		5,493,248
US GAMING LLC	LLC Interests		3,120,940
777 Partners, LLC	Preferred Stocks		—
Apnimed, Inc.	Preferred Stocks		1,599,844
Apnimed, Inc.	Preferred Stocks		603,373
Sapience Therapeutics, Inc.	Preferred Stocks		3,877,574
Sapience Therapeutics, Inc.	Preferred Stocks		4,679,252
United Fidelity Bank FSB	Preferred Stocks		500,000
CCS Medical, Inc.	Senior Secured Loans		3,000,000
MidWave Wireless, Inc.	Senior Secured Loans		1,158,740
MidWave Wireless, Inc.	Senior Secured Loans		274,324
MidWave Wireless, Inc.	Senior Secured Loans		45,726
MidWave Wireless, Inc.	Senior Secured Loans		49,010

Determination of fair value involves subjective judgments and estimates. Accordingly, the consolidated notes to the Company’s consolidated financial statements will refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, in the Company’s consolidated financial statements. Below is a description of factors that the Adviser and the Valuation Committee may consider when valuing the Company’s debt and equity investments.

Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted cash flow models to arrive at fair value. Other factors that the Adviser and the Valuation Committee may consider include the borrower’s ability to adequately service its debt, the fair market value of the portfolio company in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments.

The Company’s equity investments in portfolio companies for which there is no liquid public market will be valued at fair value. The Adviser and the Valuation Committee, in its analysis of fair value, may consider various factors, such as multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues or, in limited instances, book value or liquidation value. All of these factors may be subject to adjustments based upon the particular circumstances of a portfolio company or the Company’s actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners or acquisition, recapitalization, restructuring or other related items.

The Adviser and the Valuation Committee may also look to private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. The Adviser and the Valuation Committee may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, as well as any other factors it deems relevant in assessing the value. Generally, the value of the Company’s equity interests in public companies for which market quotations are readily available will be based upon the most recent closing public market price.

If the Company receives warrants or other equity-linked securities at nominal or no additional cost in connection with an investment in a debt security, the Company will allocate the cost basis in the investment between the debt securities and any such warrants or other equity-linked securities received at the time of origination. The Adviser and the Valuation Committee will subsequently value these warrants or other equity-linked securities received at fair value.

As applicable, the Company values its Level 2 assets by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which is provided by an independent third-party pricing service and screened for validity by such service. For investments for which the third-party pricing service is unable to obtain quoted prices, the Company obtains bid and ask prices directly from dealers who make a market in such investments.

To the extent that the Company holds investments for which no active secondary market exists and, therefore, no bid and ask prices can be readily obtained, the Adviser and the Valuation Committee utilize an independent third-party valuation service to value such investments in a manner consistent with the Company’s multistep valuation process previously described.

The Company periodically benchmarks the bid and ask prices received from the third-party pricing service and/or dealers, as applicable, and valuations received from the third-party valuation service against the actual prices at which it purchases and sells its investments. The Company believes that these prices are reliable indicators of fair value. The Adviser and the Valuation Committee review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation procedures.

As of March 31, 2026, the Company’s investments consisted of senior secured loans, corporate bonds, common stocks, LLC interests, and preferred stocks, which may be purchased for a fraction of the price of the underlying securities. The fair value of the Company’s loans and bonds, as applicable, are generally based on quotes received from brokers or independent pricing services. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the measurement date are classified as Level 2 assets. Loans and bonds that are priced using quotes derived from implied values, indicative bids or a limited number of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable.

The fair value of the Company’s common stocks, LLC interests, and preferred stocks that are not actively traded on national exchanges are generally priced using quotes derived from implied values, indicative bids, or a limited amount of actual trades and are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. In accordance with ASC 820, the Company has elected to apply the practical expedient where applicable, and to value certain investments in private REITs at their respective NAVs or NAV equivalents at each quarter. Investments measured at fair value using NAV are not categorized in the fair value hierarchy.

At the end of each calendar quarter, the Adviser evaluates the Level 2 and 3 investments for changes in liquidity, including: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market price, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Company may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities.

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following are summaries of the Company’s investments categorized within the fair value hierarchy as of March 31, 2026 and December 31, 2025:


	March 31, 2026
Investments	Level 1		Level 2		Level 3		Total
Assets
Senior Secured Loans
Healthcare	$	—	$	—	$	3,000,000	$	3,000,000
Telecommunication Services		—		—		1,575,722		1,575,722
Corporate Bonds
Media/Telecommunications		—		209,378		—		209,378
Common Stocks
Bioplastics		—		—		2,653,228		2,653,228
Financials		—		—		1,226,250		1,226,250
Real Estate Investment Trust		585,225		—		—		585,225
Real Estate		884,548		—		—		884,548
Telecommunication Services		—		—		5,999,401		5,999,401
Common Stocks - Measured at NAV (1)
Real Estate		—		—		—		365,123
LLC Interests
Consumer Products		—		—		3,517,200		3,517,200
Real Estate		—		—		5,269,986		5,269,986
Preferred Stocks
Financials		—		—		500,000		500,000
Healthcare		—		—		10,967,477		10,967,477

Total Assets	$	1,469,773	$	209,378	$	34,709,264	$	36,753,538

Total Investments	$	1,469,773	$	209,378	$	34,709,264	$	36,753,538

(1)

Certain investments measured at fair value using net asset value per share (or its equivalent) as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Schedule of Investments.


	December 31, 2025
Investments	Level 1		Level 2		Level 3		Total
Assets
Senior Secured Loans
Healthcare	$	—	$	811,507	$	3,000,000	$	3,811,507
Telecommunication Services		—		—		1,527,800		1,527,800
Corporate Bonds
Media/Telecommunications		—		255,106		—		255,106
Common Stocks
Bioplastics		—		—		2,653,228		2,653,228
Energy		181,852		—		—		181,852
Financials		—		—		1,143,750		1,143,750
Real Estate Investment Trust		704,611		—		—		704,611
Real Estate		924,616		—		—		924,616
Telecommunication Services		—		—		6,149,576		6,149,576
Common Stocks - Measured at NAV (1)
Real Estate		—		—		—		365,123
LLC Interests
Consumer Products		—		—		3,120,940		3,120,940
Real Estate		—		—		5,493,248		5,493,248
Preferred Stocks
Financials		—		—		500,000		500,000
Healthcare		—		—		10,760,043		10,760,043

Total Assets	$	1,811,079	$	1,066,613	$	34,348,585	$	37,591,400

Total Investments	$	1,811,079	$	1,066,613	$	34,348,585	$	37,591,400

(1)

The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the period ended March 31, 2026.


Investments:	Balance as of December 31, 2025		Transfers into Level 3		Transfers out of Level 3		Net amortization (accretion) of premium/ (discount)		Distribution to Return Capital		Net realized gains/ (losses)		Net change in unrealized gains/ (losses)			Purchases/ PIK		(Sales and redemptions)		Balance as of March 31, 2026		Change in unrealized gain/(loss) on Level 3 securities still held at period end
Assets
Senior Secured Loans
Healthcare	$	3,000,000	$	—	$	—	$	6,814	$	—	$	—	$	(6,814	)	$	—	$	—	$	3,000,000	$	(6,814	)
Telecommunication Services		1,527,800		—		—		—		—		—		799			47,124		—		1,575,723		799
Common Stocks
Bioplastics		2,653,228		—		—		—		—		—		—			—		—		2,653,228		—
Financials		1,143,750		—		—		—		—		—		82,500			—		—		1,226,250		82,500
Telecommunication Services		6,149,576		—		—		—		—		—		(150,175	)		—		—		5,999,401		(150,175	)
LLC Interests
Consumer Products		3,120,940		—		—		—		—		—		396,259			—		—		3,517,199		396,259
Real Estate		5,493,248		—		—		—		—		—		(223,262	)		—		—		5,269,986		(223,262	)
Preferred Stocks
Financials		500,000				—		—		—		—		—			—		—		500,000		—
Healthcare		10,760,043		—		—		—		—		—		207,434			—		—		10,967,477		207,434

Total	$	34,348,585	$	—	$	—	$	6,814	$	—	$	—	$	306,741		$	47,124	$	—	$	34,709,264	$	306,741

The table below sets forth a summary of changes in the Company’s Level 3 investments (measured at fair value using significant unobservable inputs) for the three months ended March 31, 2025.


Investments:	Balance as of December 31, 2024		Transfers into Level 3		Transfers out of Level 3		Net amortization (accretion) of premium/ (discount)		Distribution to Return Capital		Net realized gains/ (losses)		Net change in unrealized gains/ (losses)			Purchases/ PIK		(Sales and redemptions)		Balance as of March 31, 2025		Change in unrealized gain/(loss) on Level 3 securities still held at period end
Assets
Senior Secured Loans
Healthcare	$	3,000,000	$	—	$	—	$	5,788	$	—	$	—	$	(5,788	)	$	—	$	—	$	3,000,000	$	(5,788	)
Telecommunication Services		1,359,755		—		—		—		—		—		861			40,973		—		1,401,589		861
Common Stocks
Bioplastics		4,306,671		—		—		—		—		—		—			—		—		4,306,671		—
Financials		1,627,500		—		—		—		—		—		(322,500	)		—		—		1,305,000		(322,500	)
Telecommunication Services		6,169,084		—		—		—		—		—		(121,122	)		—		—		6,047,962		(121,122	)
LLC Interests																							—
Consumer Products		2,865,280		—		—		—		—		—		—			—		—		2,865,280		—
Real Estate		6,238,910		—		—		—		—		—		(257,405	)		—		—		5,981,505		(257,405	)
Preferred Stocks
Financials		725,000		—		—		—		—		—		(112,500	)		—		—		612,500		(112,500	)
Healthcare		10,749,436		—		—		—		—		—		—			—		—		10,749,436		—

Total	$	37,041,636	$	—	$	—	$	5,788	$	—	$	—	$	(818,454	)	$	40,973	$	—	$	36,269,943	$	(818,454	)

Investments designated as Level 3 may include assets valued using quotes or indications furnished by brokers which are based on models or estimates without observable inputs and may not be executable prices. In light of the developing market conditions, the Adviser continues to search for observable data points and evaluate broker quotes and indications received for portfolio investments. Determination of fair value is uncertain because it involves subjective judgments and estimates that are unobservable. Transfers into and out of Level 3 are due to changes in market activity (e.g. frequency of trades), which resulted in changes of available market inputs to determine price. For the three months ended March 31, 2026, there were no transfers from Level 3 to Level 2, and no transfers from Level 2 to Level 3.

The following are summaries of significant unobservable inputs used in the fair valuations of investments categorized within Level 3 of the fair value hierarchy as of March 31, 2026 and December 31, 2025:

Investment

Fair value at
March 31, 2026

Valuation

Technique

Unobservable
Inputs

Range of Input Value(s)
(arithmetic average)

LLC Interests

8,787,185

Transaction Indication of Value

Price per Share

$1,758.60

Preferred Stocks

11,467,477

Option Pricing Model

Volatilty

40% -90% (65%)

Transaction Indication of Value

Enterprise Value ($mm)

$474.2 -$523.3 ($498.75)

Indicative Broke Quote

Price per Share

$0 - $500 ($250)

Common Stocks

9,878,879

Discounted Cash Flow

Discount Rate

13.0% - 15.0% (14.0%)

Multiples Analysis

Multiple of EBITDA

3.50x - 4.75x (4.13x)

Unadjusted Price/MHz-PoP

$0.10 - $1.10 ($0.57)

Enterprise Value ($mm)

$45.8 - $1,285 ($631.93)

Volatility

70.0%

Senior Secured Loans

4,575,723

Transaction Indication of Value

Discount Rate

9.50% -13.75% (11.63%)

Option Pricing Model

Discounted Cash Flow

Total

34,709,264

Investment

Fair value at
December 31, 2025

Valuation

Technique

Unobservable
Inputs

Range of Input Value(s)
(arithmetic average)

LLC Interests

8,614,188

Multiples Analysis

Enterprise Value ($ mm)

$138.1 - $223.3

($180.70)

Preferred Stocks

11,260,043

Option Pricing Model

Volatility

40% - 90%

(65%)

Transaction Indication of Value

Enterprise Value ($ mm)

$384.3 - $433.0

($408.65)

Indicative Broker Quote

Price per Share

$0 - $500

($250)

Common Stocks

9,946,554

Discounted Cash Flow

Discount Rate

13.0% - 15.0%

(14.0%)

Multiples Analysis

Multiple of EBITDA

3.50x - 4.75x

(4.13x)

Unadjusted

Price/MHz-PoP

$0.10 - $1.10

($0.57)

Senior Secured Loans

4,527,800

Transaction Indication of Value

Enterprise Value ($ mm)

$41.0 - $1,285

($631.90)

Option Pricing Model

Volatility

70.0%

Discounted Cash Flow

Discount Rate

9.50% - 13.75% (11.63%)

Total

34,348,585

The significant unobservable input used in the fair value measurement of the Company’s LLC interests is price per share. The significant unobservable inputs used in the fair value measurement of the Company’s common equity securities are multiple of EBITDA, unadjusted

price/MHz-PoP

multiple, discount rate, enterprise value, and volatility assumption. The significant unobservable inputs used in the fair value measurement of the Company’s preferred equity securities are volatility assumption, enterprise value and price per share. The significant unobservable input used in the fair value measurement of the Company’s senior secured loan securities is discount rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement.

In accordance with ASC 820, investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient 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 Schedule of Investments and Consolidated Statements of Assets and Liabilities. The investment measured at fair value using the NAV per share practical expedient has the investment strategy of a private Life Sciences REIT. This private Life Sciences REIT does not permit redemptions. Investments designated as Level 3 may include assets valued using quotes or indications furnished by brokers which are based on models or estimates without observable inputs and may not be executable prices. In light of the developing market conditions, the Adviser continues to search for observable data points and evaluate broker quotes and indications received for portfolio investments. For the quarter ended March 31, 2026, there was no position that transferred out of Level 3.

Derivative Transactions

The Company is subject to equity price risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Company may invest without limitation in warrants and may also use derivatives, primarily swaps (including equity, variance and volatility swaps), options and futures contracts on securities, interest rates, commodities and/or currencies, as substitutes for direct investments the Company can make. The Company may also use derivatives such as swaps, options (including options on futures), futures, and foreign currency transactions (e.g., foreign currency swaps, futures and forwards) to any extent deemed by the Adviser to be in the best interest of the Company, and to the extent permitted by the 1940 Act, to hedge various investments for risk management and speculative purposes.

Options

The Company purchases options, subject to certain limitations. The Company may invest in options contracts to manage its exposure to the stock and bond markets and fluctuations in foreign currency values. Writing puts and buying calls tend to increase the Company’s exposure to the underlying instrument while buying puts and writing calls tend to decrease the Company’s exposure to the underlying instrument, or economically hedge other Company investments. The Company’s risks in using these contracts include changes in the value of the underlying instruments, nonperformance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Options are valued at the last sale price, or if no sales occurred on that day, at the last quoted bid price. As of and during the three months ended March 31, 2026 and 2025, the Company did not hold options.

Investment Transactions

Investment transactions are accounted for on trade date. Realized gains (losses) on investments sold are recorded on the basis of specific identification method for both consolidated financial statement and U.S. federal income tax purposes. Payable for investments purchased and receivable for investments sold on the Consolidated Statements of Assets and Liabilities, if any, represents the cost of purchases and proceeds from sales of investment securities, respectively, for trades that have been executed but not yet settled.

Income Recognition

Corporate actions (including cash dividends from common stock and equity tranches) are recorded on the

ex-dividend

date, net of applicable withholding taxes, except for certain foreign corporate actions, which are recorded as soon after the

ex-dividend

date as such information becomes available. Interest income is recorded on the accrual basis. The Company does not accrue as a receivable for interest or dividends on loans and other securities if there is a reason to doubt the Company’s ability to collect such income. For loans with contractual PIK

(payment-in-kind)

interest income, which represents contractual interest accrued and added to the loan balance that generally becomes due at maturity, the Company will not accrue PIK interest if the Company believes that the PIK interest is no longer collectible. Loan origination fees, original issue discount and market discount are capitalized, and such amounts are amortized as interest income over the respective term of the loan or security. Upon the prepayment of a loan or security, any unamortized loan origination fees and original issue discount are recorded as interest income.

Accretion of discount on taxable bonds and loans is computed to the maturity date, while amortization of premium on taxable bonds and loans is computed to the earliest call date, whichever is shorter, both using the effective yield method.

Organization and Offering Costs

Organization costs are paid by the Adviser and include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization. Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock and are also paid by the Adviser. Prior to the termination of the offering, as the Company raised proceeds, these organization and offering costs were expensed and became payable to the Adviser. Organization and offering costs are limited to 1% of total gross proceeds raised and are not due and payable to the Adviser to the extent they exceed that amount. Please refer to Note 4 for additional information on Organization and Offering Costs.

Paid-in

Capital

The proceeds from the issuance of common stock as presented on the Company’s Consolidated Statements of Changes in Net Assets is presented net of selling commissions and fees for the three months ended March 31, 2026 and March 31, 2025. Selling commissions and fees of $0 and $0 were paid for the three months ended March 31, 2026 and March 31, 2025, respectively.

Earnings Per Share

In accordance with the provisions of ASC Topic 260 -

Earnings per Share

(“ASC Topic 260”), basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.

The following table sets forth the computation of the weighted average basic and diluted net increase in net assets per share from operations:


	For the three months ended March 31,
	2026		2025
Net increase (decrease) in net assets resulting from operations	$	242,570	$	(1,074,939	)
Weighted average common shares outstanding		8,395,228		8,726,914
Earnings (loss) per common share-basic and diluted	$	0.03	$	(0.12	)

Distributions

Distributions to the Company’s stockholders will be recorded as of the record date. Subject to the discretion of the Board and applicable legal restrictions, the Company intends to authorize and declare ordinary cash distributions on a weekly basis and pay such distributions on a quarterly basis. Net realized capital gains, if any, will generally be distributed or deemed distributed at least every

12-month

period.

On June 24, 2020, the Board approved a change in its dividend and capital gains distribution schedule from monthly distributions to quarterly distributions, effective immediately. The first quarterly distribution was paid on October 12, 2020 to shareholders of record as of September 30, 2020. The dividends are expected to be declared in the amount of $0.09 per share of the Company’s common stock to the stockholders of record at each quarter end.

Practical Expedient

Pursuant to ASC Topic 820, Fair Value Measurement, the Company may elect to use net asset value per share or its equivalent as a practical expedient to measure the Company’s interest in Real Estate investments at fair value, unless it is probable that the investment will be sold at a value different from its NAV. However, for the Company to use this methodology, the company must calculate NAV in a manner consistent with the measurement principles established by ASC Topic 820.

Note 3 — Investment Portfolio

The following table shows the composition of the Company’s invested assets by industry classification at fair value at March 31, 2026:


	Fair value		Percentage
Assets
Healthcare	$	13,967,477		38.0	%
Real Estate		6,519,657		17.7	%
Telecommunication Services		7,575,123		20.6	%
Financials		1,726,250		4.7	%
Consumer Products		3,517,200		9.6	%
Bioplastics		2,653,228		7.2	%
Real Estate Investment Trusts (REITs)		585,225		1.6	%
Media/Telecommunications		209,378		0.6	%

Total Assets	$	36,753,538		100.0	%

The following table shows the composition of the Company’s invested assets by industry classification at fair value at December 31, 2025:


	Fair value		Percentage
Assets
Healthcare	$	14,571,550		38.7%
Real Estate		6,782,987		18.0%
Telecommunication Services		7,677,376		20.4%
Financials		1,643,750		4.4%
Consumer Products		3,120,940		8.3%
Bioplastics		2,653,228		7.1%
Real Estate Investment Trusts (REITs)		704,611		1.9%
Energy		181,852		0.5%
Media/Telecommunications		255,106		0.7%

Total Assets	$	37,591,400		100.0%

The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of March 31, 2026:


	Amortized Cost		Fair Value		Percentage of Portfolio (at Fair Value)
Assets
Senior Secured Loans - First Lien	$	4,584,621	$	4,575,722		12.4	%
Corporate Bonds		277,625		209,378		0.6	%
Common Stocks		8,905,071		11,713,775		31.9	%
LLC Interests		8,921,300		8,787,186		23.9	%
Preferred Stocks		11,552,847		11,467,477		31.2	%

Total Assets	$	34,241,464	$	36,753,538		100.0	%

The following table summarizes the amortized cost and the fair value of the Company’s invested assets by class of financial asset as of December 31, 2025:


	Amortized Cost		Fair Value		Percentage of Portfolio (at Fair Value)
Assets
Senior Secured Loans - First Lien	$	5,990,108	$	5,339,307		14.2%
Corporate Bonds		272,084		255,106		0.7%
Common Stocks		9,114,660		12,122,756		32.2%
LLC Interests		8,921,300		8,614,188		22.9%
Preferred Stocks		11,552,847		11,260,043		30.0%

Total Assets	$	35,850,999	$	37,591,400		100.0%

The following table shows the composition of the Company’s invested assets by geographic classification at March 31, 2026:


Geography	Fair value		Percentage
Assets
United States	$	36,753,538		100.0%

Total Assets	$	36,753,538		100.0%

The following table shows the composition of the Company’s invested assets by geographic classification at December 31, 2025:


Geography	Fair value		Percentage
Assets
United States	$	37,591,400		100.0%

Total Assets	$	37,591,400		100.0%

Note 4 — Related Party Transactions and Arrangements

Investment Advisory Fee

Payments for investment advisory services under the Company’s investment advisory agreement (the “Investment Advisory Agreement”) and administrative services agreement (the “Administration Agreement”) are equal to (a) a base management fee calculated at an annual rate of 2.0% of the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters and (b) an incentive fee based on the Company’s performance. Effective June 5, 2017, the Investment Advisory Agreement and the Administration Agreement were amended to exclude cash and cash equivalents from the calculation of gross assets for the purpose of calculating investment advisory and administration fees.

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred investment advisory fees payable to the Adviser of $186,661 and $224,978, respectively. Amounts waived for investment advisory fees or administrative fees pertaining to periods prior to June 10, 2016 are not recoupable, but amounts waived for investment advisory fees or administrative fees pertaining to periods from and after June 10, 2016 are subject to recoupment by the Adviser within three years from the date that such fees were otherwise payable, provided that the recoupment will be limited to the amount of such voluntarily waived fees from and after June 10, 2016 and will not cause the sum of the Company’s investment advisory fees, administration fees, Other Expenses (as defined under “Expense Limits and Reimbursements” below), and any recoupment to exceed the annual rate of 3.40% of average gross assets. Effective December 20, 2017, the Adviser ended its voluntary waiver of advisory fees.

Incentive Fee

The incentive fee consists of two parts. The first part, which is referred to as the subordinated incentive fee on income, is calculated and payable quarterly in arrears, and equals 20.0% of

“pre-incentive

fee net investment income” for the immediately preceding quarter and is subject to a hurdle rate, expressed as a rate of return on the Company’s net assets, as defined in the Investment Advisory Agreement, equal to 1.875% per quarter. As a result, the Adviser will not earn this incentive fee for any quarter until the Company’s

pre-incentive

fee net investment income for such quarter exceeds the hurdle rate of 1.875%. Once the Company’s

pre-incentive

fee net investment income in any quarter exceeds the hurdle rate, the Adviser will be entitled to a

“catch-up”

fee equal to the amount of the

pre-incentive

fee net investment income in excess of the hurdle rate, until the Company’s

pre-incentive

fee net investment income for such quarter equals 2.34375% of the Company’s net assets at the end of such quarter. This

“catch-up”

feature allows the Adviser to recoup the fees foregone as a result of the existence of the hurdle rate in that quarter. Thereafter, the Adviser will receive 20.0% of the Company’s

pre-incentive

fee net investment income from the quarter.

The second part of the incentive fee, which is referred to as the incentive fee on capital gains, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). This fee equals 20.0% of the Company’s incentive fee capital gains, which will equal the Company’s realized capital gains on a cumulative basis from formation, calculated as of the end of the applicable period, computed net of all realized capital losses (proceeds less amortized cost) and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. The Company will accrue for the capital gains incentive fee, which, if earned, will be paid annually. The Company will accrue for the capital gains incentive fee based on net realized and unrealized gains; however, under the terms of the Investment Advisory Agreement, the fee payable to the Adviser will be based on realized gains and no such fee will be payable with respect to unrealized gains unless and until such gains are actually realized.

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred $0 and $0 of incentive fees on capital gains, respectively. Since inception, the Company has accrued $0 of incentive fees on capital gains in aggregate. Effective December 20, 2017, the Adviser ended its voluntary waiver of incentive fees. No such fees have been paid with respect to realized gains to the Adviser as of March 31, 2026.

Administration Fee

Pursuant to the Administration Agreement with the Adviser, the Company also reimburses the Adviser for expenses necessary for its performance of services related to the Company’s administration and operations. The amount of the reimbursement will be the lesser of (1) the Company’s allocable portion of overhead and other expenses incurred by the Adviser in performing its obligations under the Administration Agreement and (2) 0.40% of the Company’s average gross assets, (excluding cash and cash equivalents). The Adviser is required to allocate the cost of such services to the Company based on objective factors such as assets, revenues, time allocations and/or other reasonable metrics. The Board assesses the reasonableness of such reimbursements based on the breadth, depth and quality of such services as compared to the estimated cost to the Company of obtaining similar services from third-party service providers known to be available. In addition, the Board will consider whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, the Board will compare the total amount paid to the Adviser for such services as a percentage of the Company’s net assets to the same ratio as reported by other comparable BDCs.

For the three months ended March 31, 2026 and March 31, 2025, the Company incurred administration fees payable to the Adviser of $35,938 and $43,253, respectively. Amounts waived for management fees or administrative services expenses pertaining to periods prior to June 10, 2016 are not recoupable, but amounts waived for management fees or administrative services, expenses pertaining to periods from and after June 10, 2016 are subject to recoupment by the Adviser within three years from the date that such fees were otherwise payable, provided that the recoupment will be limited to the amount of such voluntarily waived fees from and after June 10, 2016 and will not cause the sum of the Company’s advisory fees, administration fees, Other Expenses, and any recoupment to exceed the annual rate of 3.40% of average gross assets. Effective December 20, 2017, the Adviser ended its voluntary waiver of administration fees.

Organization and Offering Costs

Organization costs include the cost of incorporating, such as the cost of legal services and other fees pertaining to our organization, and are paid by the Adviser. For the three months ended March 31, 2026 and March 31, 2025, the Adviser did not incur or pay organization costs on our behalf.

Offering costs include legal fees, promotional costs and other costs pertaining to the public offering of our shares of common stock, and are capitalized and amortized to expense over one year. The Company’s continuous public offering ended on February 14, 2018.

Organization costs and offering costs are limited to 1% of total gross proceeds raised in the offering and are not due and payable to the Adviser to the extent they exceed that amount. As of March 31, 2026, the cumulative aggregate amount of $5,327,574 of organization and offering costs exceeds 1% of total proceeds raised. Subsequent to the termination of the offering, the Adviser forfeited the right to reimbursement of the remaining $4,305,091 of these costs.

Fees Paid to Officers and Directors

Each director who oversees all of the portfolios in the Fund Complex receives an annual retainer of $150,000 payable in quarterly installments and allocated among each portfolio in the Fund Complex based on relative net assets. The annual retainer for a director who does not oversee all of the portfolios in the Fund Complex is prorated based on the portion of the $150,000 annual retainer allocable to the portfolios overseen by such director. In addition, the Chairman of the Board receives an additional annual payment of $20,000 and the Chairperson of each committee receives an additional annual payment of $10,000

payable in quarterly installments and allocated among each portfolio in the Fund Complex based on relative net assets. The Directors are reimbursed for actual

out-of-pocket

expenses relating to attendance at meetings. The Directors do not receive any separate compensation in connection with service on Committees or for attending Board or Committee Meetings. They do not have any pension or retirement plan. The “Fund Complex” consists of all of the registered investment companies advised by the Adviser and any affiliates as of the period covered by this report. The Company pays no compensation to any of its officers, all of whom are employed by the Adviser, its affiliates or Highgate Consulting Group, Inc., doing business as Skyview Group (“Skyview”).

For the three months ended March 31, 2026 and March 31, 2025, the Company recorded an expense relating to director fees of $3,710 and $4,818, respectively, which represents the allocation of the director fees to the Company. As of March 31, 2026, there were no expenses payable relating to director fees.

Expense Limits and Reimbursements

Pursuant to an expense limitation agreement, the Adviser is contractually obligated to waive fees and, if necessary, pay or reimburse certain other expenses to limit the ordinary “Other Expenses” to 1.0% of the

quarter-end

value of the Company’s gross assets through the one year anniversary of the effective date of the registration statement (the “Expense Limitation Agreement”). Under the Expense Limitation Agreement, “Other Expenses” are all expenses with the exception of advisor and administration fees, organization and offering costs and the following: (i) interest, taxes, dividends tied to short sales, brokerage commissions, and other expenditures which are capitalized in accordance with GAAP; (ii) expenses incurred indirectly as a result of investments in other investment companies and pooled investment vehicles; (iii) other expenses attributable to, and incurred as a result of, our investments; (iv) expenses payable to the Adviser, as administrator, for providing significant managerial assistance to our portfolio companies; and (v) other extraordinary expenses (including litigation expenses) not incurred in the ordinary course of our business. The obligation will automatically renew for

one-year

terms unless it is terminated by the Company or the Adviser upon written notice within 60 days of the end of the current term or upon termination of the Investment Advisory Agreement. The Expense Limitation Agreement will continue through at least April 30, 2026.

Any expenses waived or reimbursed by the Adviser pursuant to the Expense Limitation Agreement are subject to possible recoupment by the Adviser within three years from the date of the waiver or reimbursement. The recoupment by the Adviser will be limited to the amount of previously waived or reimbursed expenses and cannot cause the Company’s expenses to exceed any expense limitation in place at the time of recoupment or waiver.

Reimbursable Expenses Table

The cumulative total of fees waived by the Adviser under the Expense Limitation Agreement, which are recoupable as of March 31, 2026 is $1,475,600. This balance, and the balances in the tables below, only include amounts pertaining to the Expense Limitation Agreement, and do not include waived advisory and administration fees subject to recoupment discussed earlier in Note 4. The following table reflects the fee waivers and expense reimbursements due from the Adviser as of March 31, 2026, which may become subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable/ (recouped) amount		Recoupment eligibility expiration
March 31, 2026	$	219,785	$	89,086	$	130,699	$	130,699		March 31, 2029

The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, which may become subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable/ (recouped) amount		Recoupment eligibility expiration
December 31, 2025	$	915,414	$	385,405	$	530,009	$	127,754		December 31, 2028
September 30, 2025		687,933		285,678		402,255		136,100		September 30, 2028
June 30, 2025		467,440		201,285		266,155		145,163		June 30, 2028
March 31, 2025		225,789		104,797		120,992		120,992		M arch 31, 2028

The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, which may become subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable/ (recouped) amount		Recoupment eligibility expiration
December 31, 2024	$	913,667	$	437,693	$	475,974	$	148,020		December 31, 2027
September 30, 2024		700,195		372,241		327,954		79,981		September 30, 2027
June 30, 2024		468,715		220,742		247,973		128,092		June 30, 2027
March 31, 2024		232,187		112,306		119,881		119,881		March 31, 2027

The following table reflects the fee waivers and expense reimbursements due from the Adviser as of December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, which may become subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable/ (recouped) amount		Recoupment eligibility expiration
December 31, 2023	$	902,219	$	481,443	$	420,776	$	140,233		December 31, 2026
September 30, 2023		630,925		350,382		280,543		96,669		September 30, 2026
June 30, 2023		420,066		236,192		183,874		102,016		June 30, 2026
March 31, 2023		208,486		126,628		81,858		81,858		Expired

During the three months ended March 31, 2026, $81,858 of expense reimbursements that were eligible for recoupment by the Adviser expired.

There can be no assurance that the Expense Limitation Agreement will remain in effect or that the Adviser will reimburse any portion of the Company’s expenses in future quarters not covered by the Expense Limitation Agreement. Amounts shown do not include the amounts committed by the Adviser to voluntarily reimburse the Company for unrealized losses, all of which are not recoupable.

Net Increase from Amounts Committed by Affiliates

For the three months ended March 31, 2026 and March 31, 2025, the Adviser did not voluntarily reimburse the Company for unrealized losses sustained. Cumulatively since inception, the Adviser has committed $2,275,000 to voluntarily reimburse the Company for such losses. Had these commitments not been made, since inception, the NAV as of March 31, 2026 would have been lower by approximately this amount.

Amounts committed and paid by the Adviser to reimburse for unrealized losses are nonrecurring, and investors should not expect the Adviser to make similar commitments or payments in the future.

Receivable from Adviser / Payable to Adviser

As of March 31, 2026 and December 31, 2025, $130,699 and $118,906 were owed from the Adviser to the Company, respectively, largely related to the expense limitation agreement.

As of March 31, 2026 and December 31, 2025, the Company owed $222,600 and $226,186, respectively, to the Adviser, largely related to advisory fees, and administration fees.

Indemnification

Under the Company’s organizational documents, the officers and Directors have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Company. Additionally, in the normal course of business, the Company may enter into contracts with service providers that contain a variety of indemnification clauses. The Company’s maximum exposure under these arrangements is dependent on future claims that may be made against the Company and, therefore, cannot be estimated.

Note 5 — U.S. Federal Income Tax Information

The Company has elected to be treated for federal income tax purposes, and intends to qualify annually, as a RIC under Subchapter M of the Code. To maintain its qualification as a RIC, the Company must, among other things, meet certain

source-of-income

and asset diversification requirements and distribute to its stockholders, for each taxable year, at least 90% of its “investment company taxable income,” which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. As a RIC, the Company will not be subject to corporate-level federal income taxes on any income that it timely distributes to its stockholders. The Company intends to make distributions in an amount sufficient to maintain its RIC status each year and to avoid any federal income taxes on income so distributed. The Company will also be subject to nondeductible federal excise taxes if it does not distribute at least 98% of net ordinary income, 98.2% of any capital gain net income, if any, and any recognized and undistributed income from prior years on which it paid no federal income taxes.

The character of income and capital gains to be distributed is determined in accordance with the Code, U.S. Treasury regulations, and other applicable authority, which may differ from GAAP. These differences include (but are not limited to) investments organized as partnerships for tax purposes, total return swaps, loan investments, and losses deferred due to wash sale transactions. Reclassifications are made to the Company’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under the Code, U.S. Treasury regulations, and other applicable authority. These reclassifications have no impact on net investment income, realized gains or losses, or net asset value of the Company. The calculation of net investment income per share in the Consolidated Financial Highlights table excludes these adjustments.

Uncertainty in Income Taxes

The Company will evaluate its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the consolidated financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Company’s tax returns are subject to examination by the Internal Revenue Service for a period of three fiscal years after they are filed. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in the Consolidated Statements of Operations. During the three months ended March 31, 2026 and March 31, 2025, the Company incurred $103,076 and $(24,832), respectively, in income taxes (benefits). Furthermore, management of the Company is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.

Income Taxes

The Company has elected to be treated as a RIC under the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, the Company must, among other requirements, meet certain

source-of-income

and asset diversification requirements and timely distribute to its stockholders at least 90% of its investment company taxable income, as defined by the Code, for each year. The Company has made and intends to continue to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal corporate-level income taxes. Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, the Company accrues excise tax, if any, on estimated excess taxable income as such taxable income is earned. The Company may hold certain portfolio company investments through HoldCos. The Company does not expect for the investments of its consolidated taxable subsidiaries to be subject to state income taxes. Accordingly, the Company’s provision for income taxes is reflective of only the U.S. federal statutory corporate rate of 21.0%. These consolidated subsidiaries recognize deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between the tax basis of certain assets and liabilities and the reported amounts included in the accompanying consolidated balance sheet using the applicable statutory tax rates in effect for the year in which any such temporary differences are expected to reverse.

The following table sets forth the significant components of deferred tax assets and liabilities included in the accompanying consolidated balance sheet as of March 31, 2026 and December 31, 2025:


	As of March 31, 2026			As of December 31, 2025
Deferred tax assets:
Net operating loss carryforwards	$	—		$	—
Net unrealized depreciation of portfolio investments		—			70,830

Total deferred tax assets		—			70,830

Deferred tax liabilities:
Net unrealized appreciation of portfolio investments		(139,178	)		(106,932	)

Total deferred tax liabilities		(139,178	)		(106,932	)

The Company’s income tax expense (benefit) consists of the following:


	For the three months ended March 31,
	2026		2025
Current	$	—	$	—
Deferred		38,598		(24,832	)
Change in valuation		64,478		—

Total provision for income taxes	$	103,076	$	(24,832	)

The Company’s effective tax rates for the three months ended March 31, 2026 and March 31, 2025 were 72.72% and

2.26%, respectively. The Company does not expect for the investments of its HoldCos to be subject to state income taxes. Our effective tax rate differs from the U.S. federal statutory corporate tax rate of 21.00% primarily due to our RIC operations generally not being subject to federal income taxes.

Note 6 — Share Repurchase Program

On a quarterly basis, the Company intends to offer to repurchase shares of common stock on such terms as may be determined by the Board in its complete and absolute discretion unless, in the judgment of directors who are not “interested persons” of the Company (as defined in the 1940 Act), such repurchases would not be in the best interests of the Company’s stockholders or would violate applicable law. The Company will conduct such repurchase offers in accordance with the requirements of Rule

13e-4

of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the 1940 Act. Any offer to repurchase shares of common stock will be conducted solely through tender offer materials furnished to each stockholder.

The Company currently intends to limit the number of shares of common stock to be repurchased during any calendar year to the number of shares of common stock it can repurchase with the proceeds it receives from the sale of shares of common stock under its distribution reinvestment plan. At the discretion of the Board, the Company may also use cash on hand, cash available from borrowings and cash from liquidation of securities investments as of the end of the applicable period to repurchase shares of common stock. In addition, the Company will limit the number of shares of common stock to be repurchased in any calendar year to 10.0% of the weighted average number of shares of common stock outstanding in the prior calendar year, or 2.5% in each quarter, though the actual number of shares of common stock that the Company offers to repurchase may be less in light of the limitations noted above.

The Company intends to offer to repurchase such shares of common stock at a price not less than the net asset value per share (the “NAV Per Share”) of the Company’s common stock next calculated following the Expiration Date. The Board may amend, suspend or terminate the share repurchase program at any time, upon 30 days’ notice.

The Company conducted its quarterly tender offer for the

first

quarter of 2026 from February 20, 2026, until March 23, 2026 at 4:00 p.m. New York City time, during which the Company offered to purchase for cash up to 1% of its outstanding shares of common stock. During the first quarter tender offer, 84,458 shares of the Company were tendered for repurchase, constituting approximately 1% of the Company’s outstanding shares.

For the three months ended March 31, 2026, the Company repurchased 0 shares as part of its death and disability repurchase program.

Note 7 — Economic Dependency and Commitments and Contingencies

The Adviser has entered into a Services Agreement with Skyview, pursuant to which the

Adviser

will receive administrative and operational support services to enable it to provide the required advisory services to the Company. The Adviser, and not the Company, will compensate all Adviser and Skyview personnel who provide services to the Company.

From time to time, the Company may be involved in legal proceedings in the normal c

rse of its business. Although the outcome of such litigation cannot be predicted with any clarity, management is of the opinion, based on the advice of legal counsel, that final dispositions of any litigation should not have a material adverse effect on the financial position of the Company as of March 31, 2026.

Unfunded commitments to provide funds to portfolio companies are not recorded in the Company’s Consolidated Statements of Assets and Liabilities. Since these commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company has sufficient liquidity to fund these commitments. As of March 31, 2026, the Company had no unfunded debt commitments.

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnification. The Company’s maximum exposure under these agreements is unknown, as this would involve future claims that may be made against the Company that have not occurred. The Company believes the risk of material obligations under these indemnities to be low.

Note 8 — Market and Other Risk Factors

The primary risks of investing in the Company are described below in alphabetical order:

Conflict of Interest Risk

The Adviser or its affiliates may have other clients with similar, different or competing investment objectives. In serving in these multiple capacities, they may have obligations to other clients or investors in those other entities, the fulfillment of which may not be in the best interests of us or our stockholders. For example, our Adviser and its affiliates manage or sponsor other investment funds, accounts or other investment vehicles. Our investment objective may overlap with the investment objectives of such affiliated investment funds, accounts or other investment vehicles. As a result, our Adviser may face conflicts of interest in the allocation of investment opportunities among us and other investment funds, accounts or other investment vehicles advised by or affiliated with our Adviser. Our Adviser will seek to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with its allocation policy. However, the Company can offer no assurance that such opportunities will be allocated to us fairly or equitably in the short-term or over time. Where the Company is able to

co-

invest consistent with the requirements of the 1940 Act and SEC exemptive relief, if sufficient securities or loan amounts are available to satisfy our and each such account’s proposed demand, the opportunity will be allocated in accordance with our Adviser’s

pre-transaction

determination and the requirements of the exemptive relief. If there is an insufficient amount of an investment opportunity to satisfy our demand and that of other accounts sponsored or managed by our Adviser or its affiliates, the allocation policy and exemptive relief further provides that allocations among us and such other accounts will generally be made pro rata based on the amount that each such party would have invested if sufficient loan amounts were available. However, there can be no assurance that the Company will be able to participate in all suitable investment opportunities.

Concentration Risk

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 the Company’s assets that it may invest in securities of a single issuer. To the extent that the Company assumes large positions in the securities of a small number of issuers, the Company’s net asset value may 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 issuer. The Company may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond the asset diversification requirements associated with the Company’s qualification as a RIC under the Code and certain contractual diversification requirements under a credit facility or other agreements, the Company does not have fixed guidelines for diversification, and its investments could be concentrated in relatively few portfolio companies. As a result, the aggregate returns the Company realizes may be significantly adversely affected if a small number of investments perform poorly or if the Company needs to write down the value of any one investment. Additionally, the Company’s investments may be concentrated in relatively few industries. As a result, a downturn in any particular industry in which the Company is invested could also significantly impact the aggregate returns realized.

Covenant-Lite Loans Risk

Loans in which the Company invests include covenant-lite loans, which carry more risk to the lender than traditional loans as they may contain fewer or less restrictive covenants on the borrower than traditionally included in loan documentation or may contain other borrower friendly characteristics. The Company may experience relatively greater difficulty or delays in enforcing its rights on its holdings of certain covenant-lite loans and debt securities than its holdings of loans or securities with the usual covenants.

Counterparty Credit Risk

Counterparty credit risk is the potential loss the Company may incur as a result of the failure of a counterparty or an issuer to make payments according to the terms of a contract. Counterparty credit risk is measured as the loss the Company would record if its counterparties failed to perform pursuant to the terms of their obligations to the Company. Because the Company may enter into

over-the-counter

forwards, options, swaps and other derivative financial instruments, the Company may be exposed to the credit risk of its counterparties. To limit the counterparty credit risk associated with such transactions, the Company conducts business only with financial institutions judged by the Adviser to present acceptable credit risk.

Credit Risk

Debt securities are subject to the risk of

non-payment

of scheduled interest and/or principal.

Non-payment

would result in a reduction of income to the Company, a reduction in the value of the obligation experiencing

non-payment

and a potential decrease in the Company’s net asset value.

Investments rated below investment grade are commonly referred to as high-yield, high risk or “junk debt.” They are regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and/or interest payments. Investments in high yield debt and high yield senior loans may result in greater net asset value fluctuation than if the Company did not make such investments. Corporate debt obligations, including senior loans, are subject to the risk of

non-payment

of scheduled interest and/or principal.

Non-payment

would result in a reduction of income to the Company, a reduction in the value of the corporate debt obligation experiencing

non-payment

and a potential decrease in the net asset value of the Company. Some of the loans the Company makes or acquires may provide for the payment by borrowers of

Payment-In-Kind

(“PIK”) interest or accreted original issue discount at maturity. Such loans have the effect of deferring a borrower’s payment obligation until the end of the term of the loan, which may make it difficult for the Company to identify and address developing problems with borrowers in terms of their ability to repay debt. Particularly in a rising interest rate environment, loans containing PIK and original issue discount provisions can give rise to negative amortization on a loan, resulting in a borrower owing more at the end of the term of a loan than what it owed when the loan was originated. Any such developments may increase the risk of default on the Company’s loans by borrowers.

Because loans are not ordinarily registered with the SEC or any state securities commission or listed on any securities exchange, there is usually less publicly available information about such instruments. In addition, loans may not be considered “securities” for purposes of the anti-fraud protections of the federal securities laws and, as a result, as a purchaser of these instruments, the Company may not be entitled to the anti-fraud protections of the federal securities laws. In the course of investing in such instruments, the Company may come into possession of material nonpublic information and, because of prohibitions on trading in securities of issuers while in possession of such information, the Company may be unable to enter into a transaction in a publicly-traded security of that issuer when it would otherwise be advantageous for us to do so. Alternatively, the Company may choose not to receive material nonpublic information about an issuer of such loans, with the result that the Company may have less information about such issuers than other investors who transact in such assets.

Foreign Securities Risk

Investments in foreign securities involve certain factors not typically associated with investing in U.S. securities, such as risks relating to (i) currency exchange matters, including fluctuations in the rate of exchange between the U.S. dollar (the currency in which the books of the Company are maintained) and the various foreign currencies in which the Company’s portfolio securities will be denominated and costs associated with conversion of investment principal and income from one currency into another; (ii) differences between the U.S. and foreign securities markets, including the absence of uniform accounting, auditing and financial reporting standards and practices and disclosure requirements, and less government supervision and regulation; (iii) political, social or economic instability; and (iv) the extension of credit, especially in the case of sovereign debt.

Illiquid Securities Risk

The Company will generally make investments in private companies. Substantially all of these investments will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. The illiquidity of the Company’s investments may make it difficult for the Company to sell such investments if the need arises. In addition, if it is required to liquidate all or a portion of its portfolio quickly, the Company may realize significantly less than the value at which it has previously recorded its investments. In addition, it may face other restrictions on its ability to liquidate an investment in a portfolio company to the extent that it has material

non-public

information regarding such portfolio company or if an investment is held by one of its subsidiaries and is subject to contractual limitations on sale, such as the limitations on transfer of assets under certain circumstances under a credit facility.

The Company may seek to address its short-term liquidity needs by carefully managing the settlements of its portfolio transactions, including transactions in loans, by maintaining short-term liquid assets sufficient to meet reasonably anticipated obligations, and by maintaining a credit facility.

Interest Rate Risk

Interest Rate risk is the risk that fixed income securities will decline in value because of changes in interest rates. When interest rates decline, the value of fixed rate securities already held by the Company can be expected to rise. Conversely, when interest rates rise, the value of existing fixed rate portfolio securities can be expected to decline. A company with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration Recent and potential future changes in government monetary policy may affect the level of interest rates.

Investments in Foreign Markets Risk

Investments in foreign markets involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies, high rates of inflation, restrictions on repatriation of income and capital, and adverse political and economic developments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls, tariffs and taxes, subject to delays in settlements, and their prices may be more volatile. The Company may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation as income and/or capital gains are earned.

Leverage Risk

The Company may use leverage in its investment program, including the use of borrowed funds and investments in certain types of options, such as puts, calls and warrants, which may be purchased for a fraction of the price of the underlying securities. While such strategies and techniques increase the opportunity to achieve higher returns on the amounts invested, they also increase the risk of loss. To the extent the Company purchases securities with borrowed funds, its net assets will tend to increase or decrease at a greater rate than if borrowed funds are not used. If the interest expense on borrowings were to exceed the net return on the portfolio securities purchased with borrowed funds, the Company’s use of leverage would result in a lower rate of return than if the Company were not leveraged.

Operational and Technology Risk

The risk that cyber-attacks, disruptions, or failures that affect the Company’s service providers, counterparties, market participants, or issuers of securities held by the Company may adversely affect the Company and its shareholders, including by causing losses for the Company or impairing the Company’s operations.

Options Risk

There are several risks associated with transactions in options on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A transaction in options or securities may be unsuccessful to some degree because of market behavior or unexpected events.

When the Company writes a covered call option, the Company forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but retains the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its obligation and once an option writer has received an exercise notice, it must deliver the underlying security in exchange for the strike price.

When the Company writes a covered put option, the Company bears the risk of loss if the value of the underlying stock declines below the exercise price minus the put premium. If the option is exercised, the Company could incur a loss if it is required to purchase the stock underlying the put option at a price greater than the market price of the stock at the time of exercise plus the put premium the Company received when it wrote the option. While the Company’s potential gain in writing a covered put option is limited to distributions earned on the liquid assets securing the put option plus the premium received from the purchaser of the put option, the Company risks a loss equal to the entire exercise price of the option minus the put premium.

Real Estate Securities Risk

The securities of issuers that own, construct, manage or sell residential, commercial or industrial real estate are subject to risks in addition to those of other issuers. Such risks include: changes in real estate values and property taxes, overbuilding, variations in rental income, interest rates and changes in tax and regulatory requirements, such as those relating to the environment. Performance of a particular real estate security depends on the structure, cash flow and management skill of the particular company.

Real Estate Investment Trusts (REITs) Risk

Equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while mortgage REITs may be affected by the quality of any credit extended. Further, equity and mortgage REITs are dependent upon management skill and are not diversified. Such trusts are also subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and the possibility of failing to qualify for special tax treatment under Subchapter M of the Code and to maintain an exemption under the 1940 Act. Any rental income or income from the disposition of such real estate could adversely affect its ability to retain its tax status, which would have adverse tax consequences on its shareholders. Finally, certain REITs may be self-liquidating at the end of a specified term, and run the risk of liquidating at an economically inopportune time.

Securities Market Risk

The risk that the value of securities owned by the Company may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. Economic, political and financial conditions, industry or economic trends and developments or public health risks, such as epidemics or pandemics, may, from time to time, and for varying periods of time, cause volatility, illiquidity or other potentially adverse effects in the financial markets. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously. Many factors can affect this value and you may lose money by investing in the Company.

Senior Loans Risk

The risk that the issuer of a senior loan may fail to pay interest or principal when due, and changes in market interest rates may reduce the value of the senior loan or reduce the Company’s returns. The risks associated with senior loans are similar to the risks of high yield debt securities. Senior loans and other debt securities are also subject to the risk of price declines and to increases in interest rates, particularly long-term rates. Senior loans are also subject to the risk that, as interest rates rise, the cost of borrowing increases, which may increase the risk of default. In addition, the interest rates of floating rate loans typically only adjust to changes in short-term interest rates; long-term interest rates can vary dramatically from short-term interest rates. Therefore, senior loans may not mitigate price declines in a long-term interest rate environment. The Company’s investments in senior loans are typically below investment grade and are considered speculative because of the credit risk of their issuers.

Structured Finance Securities Risk

A portion of the Company’s investments may consist of equipment trust certificates, collateralized mortgage obligations, collateralized bond obligations, collateralized loan obligations (“CLO”) or similar instruments. Such structured finance securities are generally backed by an asset or a pool of assets, which serve as collateral. Depending on the type of security, the collateral may take the form of a portfolio of mortgage loans or bonds or other assets. The Company and other investors in structured finance securities ultimately bear the credit risk of the underlying collateral. In some instances, the structured finance securities are issued in multiple tranches, offering investors various maturity and credit risk characteristics, often categorized as senior, mezzanine and subordinated/equity according to their degree of risk. The riskiest securities are the equity tranche, which bears the bulk of defaults from the bonds or loans serving as collateral, and thus may protect the other, more senior tranches from default. If there are defaults or the relevant collateral otherwise underperforms, scheduled payments to senior tranches of such securities take precedence over those of mezzanine tranches, and scheduled payments to mezzanine tranches take precedence over those to subordinated/equity tranches. A senior tranche typically has higher ratings and lower yields than the underlying securities, and may be rated investment grade. Despite the protection from the equity tranche, other tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to previous defaults and the disappearance of protecting tranches, market anticipation of defaults and aversion to certain structured finance securities as a class.

Short-Selling Risk

Short sales by the Company that are not made where there is an offsetting long position in the asset that it is being sold short theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase. Short selling allows the Company to profit from declines in market prices to the extent such decline exceeds the transaction costs and costs of borrowing the securities. However, since the borrowed securities must be replaced by purchases at market prices in order to close out the short position, any appreciation in the price of the borrowed securities would result in a loss. Purchasing securities to close out the short position can itself cause the price of securities to rise further, thereby exacerbating the loss. The Company may mitigate such losses by replacing the securities sold short before the market price has increased significantly. Under adverse market conditions, the Company might have difficulty purchasing securities to meet margin calls on its short sale delivery obligations, and might have to sell portfolio securities to raise the capital necessary to meet its short sale obligations at a time when fundamental investment considerations would not favor such sales. Further, if other short positions of the same security are closed out at the same time, a “short squeeze” can occur where demand exceeds the supply for the security sold short. A short squeeze makes it more likely that the Adviser will need to replace the borrowed security at an unfavorable price.

Swaps Risk

The risk involves both the risks associated with an investment in the underlying investments or instruments (including equity investments) and counterparty risk. In a standard OTC swap transaction, two parties agree to exchange the returns, differentials in rates of return or some other amount calculated based on the “notional amount” of predetermined investments or instruments, which may be adjusted for an interest factor. Swaps can involve greater risks than direct investments in securities, because swaps may be leveraged and OTC swaps are subject to counterparty risk (e.g., the risk of a counterparty’s defaulting on the obligation or bankruptcy), credit risk and pricing risk (i.e., swaps may be difficult to value). Swaps may also be considered illiquid. Certain swap transactions, including certain classes of interest rate swaps and index credit default swaps, may be subject to mandatory clearing and exchange trading, although the swaps in which the Company will invest are not currently subject to mandatory clearing and exchange trading. The use of swaps is a highly specialized activity which involves investment techniques, risk analyses and tax planning different from those associated with ordinary portfolio securities transactions. The value of swaps, like many other derivatives, may move in unexpected ways and may result in losses for the Company.

Note 9 — Affiliated Investments

Under Section 2(a)(3) of the 1940 Act, a portfolio company is defined as “affiliated” if a fund owns five percent or more of its outstanding voting securities or if the portfolio company is under common control. The table below shows affiliated issuers of the Company as of March 31, 2026:


Affiliated investments	Shares at December 31, 2025		Fair value as of December 31, 2025		Transfers in (out) at cost		Purchases		Sales and Return of Capital Distribution		Realized gains (losses)			Change in unrealized appreciation (depreciation)			Fair value as of March 31, 2026		Shares at March 31, 2026		Affiliated Dividend income
NexPoint Residential Trust, Inc.		23,409	$	704,611	$	—	$	—	$	—	$	—		$	(119,386	)	$	585,225		23,409	$	12,407

NexPoint Capital REIT, LLC (Common Stocks)		789		5,493,248		—		—		—		—			(223,262	)		5,269,986		789		180,000

NexPoint Real Estate Finance, Inc.		65,670		924,616		—		—		—		(14	)		(40,054	)		884,548		65,670		32,834

Total affiliated investments		89,868	$	7,122,475	$	—	$	—	$	—	$	(14	)	$	(382,702	)	$	6,739,759		89,868	$	225,241

Note 10 — Consolidated Financial Highlights

Selected data for a share outstanding throughout the three months ended March 31, 2026 and March 31, 2025 is as follows:


	For the Three Months Ended			For the Three Months Ended
	March 31, 2026 (unaudited)			March 31, 2025 (unaudited)
Common shares per share operating performance:
Net asset value, beginning of period	$	4.39		$	5.21
Income from investment operations:
Net investment income (loss) (1)		0.02			0.03
Net realized and unrealized gain (loss)		0.02			(0.16	)

Total from investment operations		0.04			(0.13	)

Less distribution declared to common shareholders:
From net investment income		(0.09	)		(0.09	)
From net realized gains		—			—
From return of capital		—			—

Total distributions declared to common shareholders		(0.09	)		(0.09	)

Capital share transaction
Issuance of common stock (2)		—			—
Shares tendered (1)		—			—
Net asset value, end of period	$	4.34		$	4.99
Net asset value total return (3)(4)		0.91	%		(2.64	)%
Ratio and supplemental data:
Net assets, end of period (in 000’s)	$	36,095		$	42,880
Shares outstanding, end of period		8,325,126			8,589,867
Common share information at end of period:
Ratios based on weighted average net assets of common shares:
Gross operating expenses (5)		4.95	%		4.50	%
Fees and expenses waived or reimbursed (5)		(1.44	)%		(1.09	)%
Net operating expenses (5)		3.51	%		3.42	%
Net investment income (loss) before fees waived or reimbursed (5)		0.12	%		1.53	%
Net investment income (loss) after fees waived or reimbursed (5)		1.56	%		2.60	%
Ratio of interest and credit facility expenses to average net assets		—	%		—	%
Portfolio turnover rate (4)		0	%		—	%
Asset coverage ratio		—	%		—	%
Weighted average commission rate paid (6)	$	—		$	—

(1)	Per share data was calculated using weighted average shares outstanding during the period.

(2)

The continuous issuance of common stock may cause an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of corporate bond net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share data was derived by computing (i) the sum of (A) the number of shares issued in connection with subscriptions and/or distribution reinvestment on each share transaction date times (B) the differences between the net proceeds per share and the net asset value per share on each share transaction date, divided by (ii) the total shares outstanding at the end of the period. The Company’s continuous public offering ended on February 14, 2018.

(3)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions and assume no sales charge. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Company’s Dividend Reinvestment Plan. Had the Adviser not absorbed a portion of expenses, total returns would have been lower.

(4)	Not annualized.

(5)	Annualized.

(6)	Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of portfolio shares purchased and sold for which commissions were charged.

Note 11 — Subsequent Events

The Company has evaluated subsequent events through the date on which these consolidated financial statements were issued and note that there are no events to disclose.

Item 2.

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 unaudited financial statements and related notes thereto included elsewhere in this quarterly report on Form 10-Q. In this report, “we,” “us” and “our” refer to NexPoint Capital, Inc.

Forward-Looking Statements

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q may include statements as to:

•

our future operating results;

•

changes in healthcare technologies, finance and regulations adversely affecting our portfolio companies or financing model;

•

changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, which could result in changes to the value of our assets;

•

our business prospects and the prospects of the companies in which we may invest;

•

the impact of the investments that we expect to make;

•

the impact of increased competition;

•

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 may invest;

•

the ability of our portfolio companies to achieve their objectives;

•

impact and effects of the recent outbreak of COVID-19 or a future pandemic or epidemic on the future financial performance of the Company;

•

the relative and absolute performance of our Adviser;

•

our current and expected financings and investments;

•

our ability to make distributions to our stockholders;

•

the adequacy of our cash resources, financing sources and working capital;

•

the timing and amount of cash flows, distributions and dividends, if any, from our portfolio companies;

•

our use of financial leverage;

•

the ability of the Adviser to locate suitable investments for us and to monitor and administer our investments;

•

the ability of the Adviser or its affiliates to attract and retain highly talented professionals;

•

our ability to maintain our qualification as a regulated investment company, or RIC, and as a BDC;

•

the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder;

•

the effect of changes to tax legislation and our tax position; and

•

the tax status of the enterprises in which we may invest.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth elsewhere in this quarterly report on Form 10-Q and as “Risk Factors” in the prospectus relating to the continuous public offering of our common stock.

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report on Form 10-Q. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Stockholders are advised to consult any additional disclosures that we may make directly to stockholders or through reports that we may file in the future with the U.S. Securities and Exchange Commission (the “SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The forward-looking statements and projections contained in this quarterly report on Form 10-Q are excluded from the safe harbor protection provided by Section 27A of the 1933 Act, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This quarterly report on Form 10-Q may contain statistics and other data that have been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data.

Overview

We were formed in Delaware on September 30, 2013 and formally commenced operations on September 2, 2014. We are an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we have elected to be treated as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) with retroactive effect to the date we elected to be treated as a BDC. As a BDC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code.

NexPoint Advisors, L.P. (the “Adviser”), which serves as the adviser of the Company, is registered with the SEC as an adviser under the Investment Advisers Act of 1940, as amended. Under the general supervision of our board of directors (the “Board”) the Adviser will carry out the investment and reinvestment of the net assets of the Company, will furnish continuously an investment program with respect to the Company, and determine which securities should be purchased, sold or exchanged. In addition, the Adviser will supervise and provide oversight of the Company’s service providers.

The Adviser has also entered into a Services Agreement with Highgate Consulting Group, Inc., doing business as Skyview Group (“Skyview”), effective February 25, 2021, pursuant to which the Adviser will receive administrative and operational support services to enable it to provide the required advisory services to the Company. The Adviser will compensate all Adviser and Skyview personnel who provide services to the Company.

In July 2022, the Adviser formed NexPoint Services, LLC (“NexPoint Services”) as a new 100% wholly-owned subsidiary to perform administrative and accounting services for the Adviser. Certain Skyview personnel were dual-employees of NexPoint Services, with the same services being performed by the dual-employees. As of January 1, 2026, NexPoint Services had no employees or dual-employees and all employees were transferred to the Adviser. The Adviser, and not the Company, will compensate all Adviser, Skyview, and dual-employee personnel who provide services to the Company.

Our investment objective is to generate high current income and long-term capital appreciation. We seek to achieve our objective by using the experience of the healthcare, credit and structured products teams of the Adviser and its affiliates to source, evaluate and structure investments, identify attractive investment opportunities that are primarily debt investments that generate high income without creating undue risk for the portfolio, make equity investments where we believe there will be attractive risk-adjusted returns that compensate for the lack of current income, and make investments in debt and equity tranches of collateralized loan obligations, or CLOs, that deliver income and high relative value. We will focus on companies that are stable, have positive cash flow and the ability to grow their business model.

Our investment policy is to invest, under normal circumstances, at least 80% of our total assets in debt and equity of middle-market companies, with an emphasis on healthcare companies, syndicated floating rate debt of large public and nonpublic companies and mezzanine and equity tranches of CLOs. Middle-market companies include companies with annual revenues between $50,000,000 and $2,500,000,000 and syndicated floating rate debt refers to loans and other instruments originated by a bank to a corporation that are sold off, or syndicated, to investors in pieces. We consider a healthcare company to be a company that is engaged in the design, development, production, sale, management or distribution of products, services or facilities used for or in connection with the healthcare industry. Additionally, we consider companies that are materially impacted by the healthcare industry (such as a contractor that derives significant revenue or profit from the construction of hospitals) as being engaged in the healthcare industry. We may invest without limit in companies that are not in the healthcare sector.

We will leverage the expertise of our Adviser with regard to distressed investing and restructuring to make opportunistic investments in distressed companies. We will utilize the Adviser’s credit underwriting capability to identify the types of companies we believe will provide high current income and/or long-term capital appreciation. In addition to the investments in the healthcare industry, we may invest a portion of our capital in other opportunistic investments in which the Adviser has expertise and where we believe an opportunity exists to achieve above average risk adjusted yields and returns. These types of opportunities may include: (1) direct lending or origination investments, (2) investments in stressed or distressed situations, (3) structured product investments, (4) equity investments and (5) other investment opportunities not typically available in other BDCs. Opportunistic investments may range from broadly syndicated deals to direct lending deals in both private and public companies and may include foreign investments. We believe this is the best approach to achieving our dual mandate of attempting to generate a high yield while also attempting to produce capital appreciation.

We seek to invest primarily in securities deemed by the Adviser to be high income generating debt investments and income generating equity securities of privately held companies in the United States. We expect the portfolio will be concentrated primarily in senior floating rate debt securities, although we may invest without limit in securities which rank lower than senior secured

instruments and may invest without limit in investments with a fixed rate of interest. We will buy syndicated loans, various tranches of CLOs and other debt instruments in the secondary market as well as originate debt so we can tailor the investment parameters more precisely to our needs. We also intend to invest a portion of the portfolio in equity securities that are non-income producing, when doing so will help us achieve our objective of long-term capital appreciation. We expect the size of our positions will range from less than $1,000,000 to $20,000,000, although investments may be larger as our asset base increases. We may selectively make investments in amounts larger than $20,000,000 in some of our portfolio companies. While our asset base increases, we may make smaller investments. We may invest up to 15% of our net assets in entities that are excluded from registration under the 1940 Act by virtue of Section 3(c)(1) and 3(c)(7) of the 1940 Act (such as private equity funds or hedge funds). This limitation does not apply to any CLOs, certain of which may rely on Section 3(c)(1) or 3(c)(7) of the 1940 Act.

We expect that many of the securities in which we invest will be rated below investment grade by independent rating agencies or would be rated below investment grade if they were rated. These securities, which may be referred to as “junk”, have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, we expect that many of our debt investments will include floating interest rates that reset on a periodic basis and typically will not require the borrowers to pay down the outstanding principal of such debt prior to maturity.

We and the Adviser have obtained an exemptive order dated April 19, 2016 from the SEC to permit co-investments among the Company and certain other accounts managed by the Adviser or its affiliates, subject to certain conditions.

Public Offering

As a result of a series of private placements to the Adviser, we successfully satisfied the minimum offering requirement and officially commenced operations on September 2, 2014. In connection with the satisfaction of the minimum offering requirement and the commencement of our operations, the Investment Advisory Agreement became effective and the base management fee and any incentive fees, as applicable, payable to the Adviser under the Investment Advisory Agreement began to accrue. In February 2018, we closed our continuous public offering of shares of common stock.

Revenues

We generate a significant portion of our total revenue in the form of interest on the debt securities that we hold. We expect that the senior debt we invest in will generally have stated terms of 3 to 5 years and that the subordinated debt we invest in will generally have stated terms of 5 to 7 years. Our senior and subordinated debt investments bear interest at a fixed or floating rate. Interest on debt securities is generally payable monthly, quarterly or semiannually. In addition, some of our investments provide for deferred interest payments or payment-in-kind, or PIK, interest. We may also generate revenues in the form of dividends and other distributions on the equity or other securities we may hold. In addition, we may generate revenues in the form of commitment, closing, origination, structuring or diligence fees, monitoring fees, fees for providing managerial assistance, consulting fees, prepayment fees and performance-based fees. Any such fees generated in connection with our investments will be recognized as earned.

Expenses

We expect that our primary operating expenses will include the payment of fees to the Adviser under the Investment Advisory Agreement, our allocable portion of overhead expenses under the Administration Agreement and other operating costs described below. Prior to December 20, 2017, the Adviser was waiving most fees, subject to possible recoupment for expenses pertaining to periods from and after June 10, 2016. Effective December 20, 2017, the Adviser ended its voluntary waiver of advisory and administration fees. We bear all out-of-pocket costs and expenses of our operations and transactions, including:

•

our organization (expenses initially paid by the Adviser until sufficient equity proceeds are raised);

•

calculating our net asset value and net asset value per share (including the costs and expenses of independent valuation firms);

•

fees and expenses, including travel expenses, incurred by the Adviser or payable to third parties in performing due diligence on prospective portfolio companies, monitoring our investments and, if necessary, enforcing our rights;

•

interest payable on debt, if any, incurred to finance our investments;

•

the costs of this and all future offerings of common shares and other securities, and other incurrence of debt;

•

the base management fee and any incentive fee;

•

distributions on our shares;

•

administration fees payable to the Adviser under the Administration Agreement;

•

transfer agent and custody fees and expenses;

•

the actual costs incurred by the Adviser as our administrator in providing managerial assistance to those portfolio companies that request it;

•

amounts payable to third parties relating to, or associated with, evaluating, making and disposing of investments;

•

brokerage fees and commissions;

•

registration fees;

•

listing fees;

•

taxes;

•

director fees and expenses;

•

costs associated with our reporting and compliance obligations under the 1940 Act and applicable U.S. federal and state securities laws;

•

the costs of any reports, proxy statements or other notices to our stockholders, including printing costs;

•

costs of holding stockholder meetings;

•

our fidelity bond;

•

directors and officers/errors and omissions liability insurance, and any other insurance premiums;

•

litigation, indemnification and other non-recurring or extraordinary expenses;

•

direct costs and expenses of administration and operation, including audit and legal costs;

•

fees and expenses associated with marketing efforts, including deal sourcing fees and marketing to financial sponsors;

•

dues, fees and charges of any trade association of which we are a member; and

•

all other expenses reasonably incurred by us or the Adviser in connection with administering our business.

During periods of asset growth, we expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets and increase during periods of asset declines.

Expense Limitation

Pursuant to an expense limitation agreement (the “Expense Limitation Agreement”), the Adviser is contractually obligated to waive fees and, if necessary, pay or reimburse certain other expenses to limit ordinary “Other Expenses” to 1.0% of the quarter-end value of the Company’s gross assets through the one-year anniversary of the effective date of the registration statement. Under the Expense Limitation Agreement, “Other Expenses” are all expenses with the exception of advisor and administration fees, organization and offering costs and the following: (i) interest, taxes, dividends tied to short sales, brokerage commissions, and other expenditures which are capitalized in accordance with U.S. GAAP; (ii) expenses incurred indirectly as a result of investments in other investment companies and pooled investment vehicles; (iii) other expenses attributable to, and incurred as a result of, our investments; (iv) expenses payable to the Adviser, as administrator, for providing significant managerial assistance to our portfolio companies; and (v) other extraordinary expenses (including litigation expenses) not incurred in the ordinary course of our business. The obligation will automatically renew for one-year terms unless it is terminated by the Company or the Adviser upon written notice within 120 days of the end of the current term or upon termination of the Investment Advisory Agreement. The Expense Limitation Agreement will continue through at least April 30, 2026.

Reimbursable Expenses Table

The cumulative total of fees waived by the Adviser under the Expense Limitation Agreement which are recoupable as of March 31, 2026, is $1,475,600. This balance, and the balances in the tables below, only include amounts pertaining to the Expense Limitation Agreement, and do not include waived advisory and administration fees subject to recoupment discussed elsewhere herein.

The following table reflects the 2026 quarterly fee waivers and expense reimbursements due from the Adviser as of March 31, 2026, which are subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable amount		Recoupment eligibility expiration
March 31, 2026	$	219,785	$	89,086	$	130,699	$	130,699		March 31, 2029

The following table reflects the 2025 quarterly fee waivers and expense reimbursements due from the Adviser as of December 31, 2025, which are subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable amount		Recoupment eligibility expiration
December 31, 2025	$	915,414	$	385,405	$	530,009	$	127,754		December 31, 2028
September 30, 2025		687,933		285,678		402,255		136,100		September 30, 2028
June 30, 2025		467,440		201,285		266,155		145,163		June 30, 2028
March 31, 2025		225,789		104,797		120,992		120,992		March 31, 2028

The following table reflects the 2024 quarterly fee waivers and expense reimbursements due from the Adviser as of December 31, 2024, which are subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable amount		Recoupment eligibility expiration
December 31, 2024	$	913,667	$	437,693	$	475,974	$	148,020		December 31, 2027
September 30, 2024		700,195		372,241		327,954		79,981		September 30, 2027
June 30, 2024		468,715		220,742		247,973		128,092		June 30, 2027
March 31, 2024		232,187		112,306		119,881		119,881		March 31, 2027

The following table reflects the 2023 quarterly fee waivers and expense reimbursements due from the Adviser as of December 31, 2023, which are subject to recoupment by the Adviser.


Period ended	Yearly cumulative other expense		Yearly expense limitation		Yearly cumulative expense reimbursement		Quarterly recoupable amount		Recoupment eligibility expiration
December 31, 2023	$	902,219	$	481,443	$	420,776	$	140,233		December 31, 2026
September 30, 2023		630,924		350,382		280,543		96,669		September 30, 2026
June 30, 2023		420,066		236,192		183,874		102,016		June 30, 2026
March 31, 2023		208,486		126,628		81,858		81,858		Expired

During the three months ended March 31, 2026, $81,858 of expense reimbursements that were eligible for recoupment by the Adviser expired.

There can be no assurance that the Expense Limitation Agreement will remain in effect or that the Adviser will reimburse any portion of our expenses in future quarters not covered by the Expense Limitation Agreement. Amounts shown do not include the amounts committed by the Adviser to voluntarily reimburse the Company for unrealized losses, all of which are not recoupable.

Portfolio Investment Activity for the three months ended March 31, 2026 and 2025:

During the three months ended March 31, 2026, we did not make long or short investments in portfolio companies and other investments. During the same period, we generated proceeds from sales and principal repayments on long investments of $1,113,330. As of March 31, 2026, our investment portfolio, with a total fair value of $36.8 million, consisted of 21 interests in portfolio companies (calculated as a percentage of total invested assets: 12.4% in first lien senior secured loans, 0.6% in corporate bonds, 31.9% in common stock, 31.2% in preferred stock, and 23.9% in LLC interests). On a look-through basis, the debt investments in our portfolio carry a weighted average cost price of 100.0% on par or stated value, as applicable, and our estimated gross annual portfolio yield (which represents the expected yield to be generated by us on our investment portfolio based on the composition of our portfolio as of such date), prior to leverage costs, was 10.9% based on the amortized cost of our investments. The portfolio yield does not represent an actual investment return to stockholders.

During the three months ended March 31, 2025, we did not make long or short investments in portfolio companies and other investments. During the same period, we generated proceeds from sales and principal repayments on long investments of $15,213. As of March 31, 2025, our investment portfolio, with a total fair value of $43.2 million, consisted of 26 interests in portfolio companies (calculated as a percentage of total invested assets: 14.4% in first lien senior secured loans, 1.4% in third lien senior secured loans,

0.4% in corporate bonds, 37.0% in common stock, 26.2% in preferred stock, and 20.5% in LLC interests). On a look-through basis, the debt investments in our portfolio carry a weighted average cost price of 90.81% on par or stated value, as applicable, and our estimated gross annual portfolio yield (which represents the expected yield to be generated by us on our investment portfolio based on the composition of our portfolio as of such date), prior to leverage costs, was 7.3% based on the amortized cost of our investments. The portfolio yield does not represent an actual investment return to stockholders and does not include income from CLO equity.

Total Portfolio Activity

The following tables present selected information regarding our portfolio investment activity for the three months ended March 31, 2026 and 2025:


	For the Three Months Ended March 31,
Net Investment Activity	2026			2025
Purchases	$	—		$	245
Payment-in-kind		47,123			64,389
Sales and Principal Repayments		(1,113,330	)		(15,213	)

Net Portfolio Activity	$	(1,066,207	)	$	49,421


	For the Three Months Ended March 31,
	2026				2025
New Investment Activity by Asset Class	Purchases		Percentage		Purchases		Percentage
Senior Secured Loans—First Lien		—		—	$	40,974		63.4%
Senior Secured Loans—Third Lien		—		—		23,660		36.6%
Corporate Bonds		—		—		—		—
Preferred Stocks		—		—		—		—
LLC Interests		—		—		—		—
Warrants		—		—		—		—
Common Stocks		—		—		—		—

Total Investment Activity		—		—	$	64,634		100.0%

The following tables summarize the composition of our investment portfolio at amortized cost and fair value as of March 31, 2026, and December 31, 2025:


March 31, 2026
Portfolio Composition by Investment Type	Amortized Cost⁽¹⁾		Fair Value		Percentage of Portfolio (at fair value)
Senior Secured Loans — First Lien	$	4,584,621	$	4,575,722		12.4	%
LLC Interests		8,921,300		8,787,186		23.9	%
Corporate Bonds		277,625		209,378		0.6	%
Common Stocks		8,905,071		11,713,775		31.9	%
Preferred Stock		11,552,847		11,467,477		31.2	%

Total Invested Assets	$	34,241,464	$	36,753,538		100.0	%


December 31, 2025
Portfolio Composition by Investment Type	Amortized Cost⁽¹⁾		Fair Value		Percentage of Portfolio (at fair value)
Senior Secured Loans — First Lien	$	5,990,108	$	5,339,307		14.2%
LLC Interests		8,921,300		8,614,188		22.9%
Corporate Bonds		272,084		255,106		0.7%
Common Stocks		9,114,660		12,122,756		32.2%
Preferred Stock		11,552,847		11,260,043		30.0%

Total Invested Assets	$	35,850,999	$	37,591,400		100.0%

⁽¹⁾	Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments.

The following table presents certain selected information regarding the composition of our investment portfolio as of March 31, 2026, and December 31, 2025:


Composition of our investment portfolio	March 31, 2026			December 31, 2025
Number of investments		21			23
% Variable Rate		1	%		2	%
% Non-Income Producing Equity or Other		30	%		29	%
Weighted Average Cost (Look-Through)		100.0	%		97.9	%
Weighted Average Credit Rating of Rated Investments		Caa2			C
% of Fixed Income Investments on Non-Accrual		10.9	%		9.4	%

Portfolio Composition by Strategy and Industry

The table below summarizes the composition of our investment portfolio by strategy and enumerates the percentage, by fair value, of the total portfolio assets in such strategies as of March 31, 2026, and December 31, 2025:


	March 31, 2026			December 31, 2025
Portfolio Composition by Strategy	Fair Value		Percentage of Portfolio	Fair Value		Percentage of Portfolio
Broadly Syndicated – Private	$	11,957,446	32.5%	$	10,044,840	26.7%
Broadly Syndicated – Public		209,378	0.6%		1,672,006	4.4%
Middle-Market		24,586,714	66.9%		24,063,475	64.0%
Opportunistic/Other		—	0.0%		1,811,079	4.8%

Total Invested Assets	$	36,753,538	100.0%	$	37,591,400	100.0%

Broadly syndicated debt refers to loans and other instruments originated by a bank to a large corporation (both private and public) that are sold off, or syndicated, to investors in pieces. Middle-Market companies include companies with annual revenues between $50 million and $2.5 billion.

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of March 31, 2026, and December 31, 2025:


	March 31, 2026				December 31, 2025
Industry Classifications	Fair Value		Percentage of Portfolio		Fair Value		Percentage of Portfolio
Bioplastics	$	2,653,228		7.2%	$	2,653,228		7.1%
Consumer Products		3,517,200		9.6%		3,120,940		8.3%
Energy		—		0.0%		181,852		0.5%
Financials		1,726,250		4.7%		1,643,750		4.4%
Healthcare		13,967,477		38.0%		14,571,550		38.8%
Media/Telecommunications		209,378		0.6%		255,106		0.7%
Real Estate Investment Trusts (REITs)		585,225		1.6%		704,611		1.9%
Real Estate		6,519,657		17.7%		6,782,987		18.0%
Telecommunication Services		7,575,123		20.6%		7,677,376		20.4%

Total Invested Assets	$	36,753,538		100.0%	$	37,591,400		100.0%

As of March 31, 2026, the Company was an “affiliated person,” as defined in the 1940 Act, of the following portfolio companies: NexPoint Real Estate Finance, Inc. (“NREF”), NexPoint Capital REIT, LLC, and NexPoint Residential Trust, Inc. In general, under the 1940 Act, we are presumed to “control” a portfolio company if we owned 25% or more of its voting securities or we had the power to exercise control over the management or policies of such portfolio company and would be an “affiliated person” of a portfolio company if we owned 5% or more of its voting securities.

Summary Description of Portfolio Companies/Investments

As of March 31, 2026, and December 31, 2025, 38.0% and 43.6% (based on fair value), respectively, of our portfolio consisted of healthcare related and opportunistic investments. Information regarding these investments is provided below. This additional information is limited to publicly available information, and does not address credit worthiness or financial viability of the issuer, or our future plans as it relates to a specific investment:

Healthcare Investments

Sapience Therapeutics, Inc.: As of March 31, 2026, and December 31, 2025, we held preferred shares of Sapience Therapeutics, Inc. with an aggregate fair value of $8.6 million and $8.6 million, respectively. Sapience Therapeutics is a clinical stage biopharmaceutical company which addresses previously ‘undruggable’ molecular targets that address protein-protein interactions via the development of peptide-based drugs.

CCS Medical, Inc.: As of March 31, 2026, and December 31, 2025, we held first lien senior secured loans of CCS Medical, Inc. with an aggregate fair value of $3.0 million and $3.0 million, respectively. CCS Medical, Inc. provides direct-to-home delivery of medical supplies. The Company offers diabetes testing, insulin pumps, prescription medications, ostomy, urological, wound care, and incontinence supplies. CCS Medical serves customers in the United States.

Apnimed, Inc.: As of March 31, 2026, and December 31, 2025, we held preferred shares of Apnimed Inc, with an aggregate fair value of $2.4 million and $2.2 million, respectively. Apnimed, Inc. is a clinical-stage pharmaceutical company focused on developing oral pharmacologic therapies for the treatment of obstructive sleep apnea (OSA) and related disorders. Apnimed’ s lead development program targets the neurologic control of upper airway muscles to maintain an open airway during sleep.

Results of Operations for the Three Months Ended March 31, 2026 and 2025

Revenues

We generate a significant portion of our investment income in the form of interest on the debt securities we purchase or originate. We have invested primarily in broadly syndicated bank loans of private companies. Bank loans generally pay interest at rates which are periodically determined by reference to a base lending rate plus a spread. The base lending rate is typically the three-month SOFR. The settlement of bank loans differs from the settlement of many other equity or debt instruments. Bank loans are manually settled through the agent by assignment. As a result, settlement can take an undetermined amount of time. Currently, according to data provided by S&P Global, bank loans settle, on average, on the seventeenth day after the trade date. Generally, interest does not begin to accrue to the buyer until seven business days after the trade date.

Expenses

For the three months ended March 31, 2026 and 2025, we had total net operating expenses before taxes of $450,043 or $0.05 per share and $502,016 or $0.04 per share, respectively. Base management fees attributed to the Adviser were $186,661 and $224,978 for the three months ended March 31, 2026 and 2025, respectively. Our expenses include administrative services expenses attributed to the Adviser of $35,938 and $43,253 for the three months ended March 31, 2026 and 2025, respectively.

Amounts waived for management fees or administrative services expenses pertaining to periods prior to June 10, 2016 are not recoupable, but amounts waived for management fees or administrative services expenses pertaining to periods from and after June 10, 2016 are subject to recoupment by the Adviser within three years from the date that such fees were otherwise payable, provided that the recoupment will be limited to the amount of such voluntarily waived fees from and after June 10, 2016 and will not cause the sum of the Company’s advisory fees, administration fees, Other Expenses, and any recoupment to exceed the annual rate of 3.40% of average gross assets. Effective December 20, 2017, the Adviser ended its voluntary waiver of advisory fees.

Our other expenses subject to the Expense Limitation Agreement for three months ended March 31, 2026 and 2025, were $219,785 and $233,785 respectively, and consisted of the following:


	For the Three Months Ended March 31,
	2026		2025
Audit and tax fees	$	48,861	$	44,993
Legal fees		10,182		12,329
Custodian and accounting service fees		76,341		76,380
Reports to stockholders		31,493		29,582
Stock transfer fee		37,397		44,430
Directors’ fees		3,710		4,818
Other expenses		11,801		21,253

Total	$	219,785	$	233,785

Please refer to the Expense Limitation section above for further details on expense reimbursements.

Net Investment Income (Loss)

We earned net investment income (loss) before income taxes of $141,749 or $0.02 per share, and $268,992 or $0.03 per share, for the three months ended March 31, 2026 and 2025, respectively.

Net Realized Gains or Losses

We had sales or principal repayments of $1,113,330 and $15,213 during the three months ended March 31, 2026 and 2025, respectively, from which we realized a net gains/(losses) of $(567,776) and $1,153 respectively

Net Change in Unrealized Appreciation (Depreciation) on Investments

For the three months ended March 31, 2026 and 2025, the net change in unrealized appreciation (depreciation) on investments totaled $771,673 or $0.09 per share, and $(1,369,916) or $(0.14) per share, respectively. The net change in unrealized appreciation (depreciation) on our investments during the three months ended March 31, 2026, was primarily driven by the performance of NexPoint Capital REIT, LLC. The primary holding within the REIT subsidiary is NREF common stock. The net change in unrealized appreciation (depreciation) on our investments during the three months ended March 31, 2025, was primarily driven by the performance of NexPoint Capital REIT, LLC. The primary holding within the REIT subsidiary is NREF common stock.

Net Increase from Payment from Affiliates

For the year ended December 31, 2016, the Adviser committed $872,000 to the Company to voluntarily reimburse the Company for unrealized losses sustained. No amounts were committed for the three months ended March 31, 2026, and 2025. Cumulatively since inception, the Adviser has committed $2,275,000 to voluntarily reimburse the Company for such losses. Had these payments not been made, the NAV as of March 31, 2026, would have been lower. These payments are shown in the Statement of Operations as net increase from amounts committed by affiliates, if applicable, and are not recoupable.

Net Increase (Decrease) in Net Assets Resulting from Operations

For the three months ended March 31, 2026 and 2025, the net increase/(decrease) in net assets resulting from operations was $242,570 or $0.03, and $(1,074,939) or $(0.12) per share, respectively.


	For the Three Months Ended March 31,
	2026			2025
Income	$	461,093		$	650,016
Expenses		(319,344	)		(381,024	)
Income Tax Expense (Benefit)		(103,076	)		24,832
Net Realized Gain/(Loss)		(567,776	)		1,153
Net unrealized appreciation (depreciation)		771,673			(1,369,916	)

Total	$	242,570		$	(1,074,939	)

Other Income and Expense

Income tax expense (benefit). The Company has recorded a current income tax expense (benefit) of $103,076 for the three months ended March 31, 2026, compared to $(24,832) for the three months ended March 31, 2025, that is recorded on the Consolidated Statement of Operations.

Financial Condition, Liquidity and Capital Resources

As of March 31, 2026 and March 31, 2025, we had cash and cash equivalents of $549,614 and $1,363,139, respectively. As of March 31, 2026 and March 31, 2025, $537,207 and $1,108,139 was held in the State Street U.S. Government Money Market Fund, and $12,407 and $255,000 was held in a custodial account with State Street Bank and Trust Company, respectively. Cash and cash equivalents are available to fund new investments, pay operating expenses and pay distributions.

Prior to July 21, 2023, the Adviser controlled 2,549,002 total shares of common stock of the Company, including reinvestment of dividends, for a net amount of approximately $13.4 million as of July 21, 2023. On July 21, 2023, pursuant to the terms of a Stock Purchase Agreement, Liberty CLO Holdco Ltd. (“Liberty”) purchased a total of 2,549,002 shares of the Company. In aggregate, as of March 31, 2026, Liberty controls 2,549,002 total shares of common stock of the Company, including reinvestment of dividends, for a net amount of approximately $11.1 million, representing 30.6% of the Company’s currently issued and outstanding common stock.

The sales commissions and dealer manager fees related to the sale of our common stock were $0 and $0 for the three months ended March 31, 2026 and 2025, respectively, and were offset against capital in excess of par value on the consolidated financial statements.

We expect to generate cash flows primarily from fees, interest and dividends earned from our investments, as well as principal repayments and proceeds from sales of our investments.

Prior to investing in securities of portfolio companies, we invest the net proceeds from the issuance of shares of common stock under our distribution reinvestment plan and from sales and paydowns of existing investments primarily in cash, cash equivalents, U.S. government securities, repurchase agreements, high-quality debt instruments maturing in one year or less from the time of investment, consistent with our BDC election and our election to be treated as a RIC. Additionally, we may invest in higher yielding, liquid credit investments such as bank loans and corporate notes and bonds, which are considered “junk” as they are rated below investment grade, to the extent that at time of purchase 70% of our portfolio is in qualified investments as required by rules and regulations under the 1940 Act.

While we are authorized to issue preferred stock, we do not currently anticipate issuing any.

Contractual Obligations and Off-Balance Sheet Arrangements

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of March 31, 2026, and March 31, 2025, we had no outstanding commitments to fund investments.

We have certain contracts under which we have material future commitments. We have entered into the Investment Advisory Agreement with the Adviser in accordance with the 1940 Act. Under the Investment Advisory Agreement, the Adviser provides us with investment advisory and management services. For these services, we pay (1) a management fee equal to a percentage of the average value of our gross assets and (2) an incentive fee based on our performance.

The incentive fee consists of two parts. The first part, which is calculated and payable quarterly in arrears, equals Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter and is subject to a hurdle rate, expressed as a rate of return on our net assets, equal to 1.875% per quarter. As a result, the Adviser will not earn this incentive fee for any quarter until our pre-incentive fee net investment income for such quarter exceeds the hurdle rate of 1.875%. Once our pre-incentive fee net investment income in any quarter exceeds the hurdle rate, the Adviser will be entitled to a “catch-up” fee equal to the amount of the pre-incentive fee net investment income in excess of the hurdle rate, until our pre-incentive fee net investment income for such quarter equals 2.34375% of the Company’s net assets at the end of such quarter. This “catch-up” feature allows the Adviser to recoup the fees foregone as a result of the existence of the hurdle rate. Thereafter, the Adviser will receive 20.0% of our pre-incentive fee net investment income. For purposes of calculating this part of the incentive fee, “Pre-Incentive Fee Net Investment Income” means interest income, distribution 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 and any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the 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 PIK interest 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, realized capital losses or unrealized capital appreciation or depreciation.

The second part of the incentive fee, which is referred to as the incentive fee on capital gains, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). This fee equals 20.0% of our incentive fee capital gains, which will equal our realized capital gains on a cumulative basis from formation, calculated as of the end of the applicable period, computed net of all realized capital losses (proceeds less amortized cost) and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. We will accrue for the capital gains incentive fee, which, if earned, will be paid annually. We will accrue for the capital gains incentive fee based on net realized and unrealized gains; however, under the terms of the Investment Advisory Agreement, the fee payable to the Adviser will be based on realized gains and no such fee will be payable with respect to unrealized gains unless and until such gains are actually realized. For the three months ended March 31, 2026 and 2025, the Company incurred $0 and $0 of incentive fees on capital gains, respectively. Since inception, the Company has accrued $0 of incentive fees on capital gains in aggregate. Effective December 20, 2017, the Adviser ended its voluntary waiver of incentive fees. No such fees have been paid with respect to realized gains as of March 31, 2026.

Under the Administration Agreement, the Adviser furnishes us with office facilities and equipment, provides us clerical, bookkeeping and record keeping services at such facilities and provides us with other administrative services necessary to conduct our day-to-day operations. We will reimburse the Adviser for the allocable portion (subject to the review and approval of the Board) 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 our allocable portion of the cost of our chief financial officer and chief compliance officer and their respective staffs, to the extent that such expenses do not exceed an annual rate of 0.4% of our gross assets. The Adviser also provides on our behalf significant managerial assistance to those portfolio companies to which we are required to offer to provide such assistance and any expenses payable to the Adviser for such managerial assistance are not subject to the cap on reimbursement.

Our organization and offering costs together are limited to 1% of total gross proceeds raised and are not due and payable to the Adviser to the extent they exceed that amount. The cumulative aggregate amount of organization and offering costs exceeds 1% of total proceeds raised. Subsequent to the termination of the Offering, the Adviser forfeited the right to reimbursement of the remaining $4,305,091 of these costs.

If any of the contractual obligations discussed above is terminated, our costs under any new agreements that we enter into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we receive under our Investment Advisory Agreement and our Administration Agreement. Any new investment advisory agreement would also be subject to approval by our stockholders.

If for any taxable year we were not a “publicly offered” RIC within the meaning of Code Section 67(c)(2)(B), certain of our direct and indirect expenses, including the management fee, the incentive fee and certain other advisory expenses, would be subject to special “pass-through” rules. Such rules would treat these expenses as additional dividends to certain of our direct or indirect stockholders (generally including individuals and entities that compute their taxable income in the same manner as an individual) and as deductible by those stockholders, subject to the 2% “floor” on miscellaneous itemized deductions and other significant limitations on itemized deductions set forth in the Code.

Distributions

In order to qualify for the special tax treatment accorded RICs and their shareholders, we are required under the Code, among other things, to distribute at least 90% of our net ordinary income and net short-term capital gains in excess of net long-term capital losses, or “investment company taxable income,” to our stockholders on an annual basis. We intend to authorize and declare quarterly distributions to be paid quarterly to our stockholders as determined by the Board. In addition, we also intend to distribute any realized net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) at least annually.

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 our distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage requirements applicable to us as a BDC under the 1940 Act. If we do not distribute a certain percentage of our income annually, we will suffer adverse U.S. federal income tax consequences, including possible failure to qualify for the special tax treatment accorded RICs and their shareholders. We cannot assure stockholders that they will receive any distributions.

To the extent our taxable earnings fall below the total amount of our distributions for a taxable year, a portion of those distributions may be deemed a return of capital t

Large accelerated filer

Accelerated filer

Non-accelerated
filer

Smaller reporting company

Emerging growth company

Yes ☐ No ☒

NexPoint Capital, Inc. 10-Q