UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~March 31~~June 30, 2018

Commission File Number: 000-55411

Parkview Capital Credit, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland		47-2441958
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

1980 Post Oak Blvd, Two Post Oak Center, 15th Floor Houston, Texas		77056
(Address of Principal Executive Offices)		(Zip Code)

(713) 622-5000

(Registrant’s telephone number, including area code)

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

None

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

Common Stock, par value $0.01 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 past 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 ~~and posted on its corporate Web site~~, if any, every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). ☐ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐		Accelerated Filer	☐
Non-Accelerated Filer	☒	(Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: There were 4,000,010 issued and outstanding shares of the issuer’s common stock, $.01 par value per share, on ~~May~~August 1113, 2018.

PARKVIEW CAPITAL CREDIT, INC. FORM 10-Q

QUARTER ENDED

~~March 31~~June 30, 2018

Table of Contents

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Unaudited Financial Statements
	Condensed Statements of Financial Condition as of March 31, 2018 (Unaudited) and December 31, 2017	1
	Condensed Statements of Financial Condition as of June 30, 2018 (Unaudited) and December 31, 2017	1
	Unaudited Condensed Statements of Operations for the Three Months Ended March 31, 2018 and 2017	2
	Unaudited Condensed Statements of Operations for the Three and Six Months Ended June 30, 2018 and 2017	2
	Unaudited Condensed Statements of Changes in Net Assets for the Three Months Ended March 31, 2018 and 2017	3
	Unaudited Condensed Statements of Changes in Net Assets for the Six Months Ended June 30, 2018 and 2017	3
	Unaudited Condensed Statements of Cash Flows for the Three Months Ended March 31, 2018 and 2017	4
	Unaudited Condensed Statements of Cash Flows for the Six Months Ended June 30, 2018 and 2017	4
	Condensed Schedules of Investments as of March 31, 2018 (Unaudited) and December 31, 2017	5
	Condensed Schedules of Investments as of June 30, 2018 (Unaudited) and December 31, 2017	5
	Notes to Unaudited Condensed Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2729
Item 4.	Controls and Procedures	2729
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	2830
Item 1A.	Risk Factors	2830
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2830
Item 3.	Defaults Upon Senior Securities	2830
Item 4.	Mine Safety Disclosures	2830
Item 5.	Other Information	2830
Item 6.	Exhibits	2830
Signatures		2931

PARKVIEW CAPITAL CREDIT, INC.

CONDENSED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except share and per share information)

	March 31,			December 31,
	June 30,			December 31,
	2018			2017
	(Unaudited)
Assets
Investments at fair value
Non-controlled/ unaffiliated investments (amortized cost $46,740 and $48,780, respectively)	$	44,423		$	46,582
Non-controlled/ unaffiliated investments (amortized cost $52,182 and $48,780, respectively)	$	50,096		$	46,582
Controlled/ affiliated investments (amortized cost $11,748 and $8,164, respectively)		12,017			8,265
Controlled/ affiliated investments (amortized cost $12,586 and $8,164, respectively)		13,471			8,265
Total investments, at fair value (amortized cost $58,488 and $56,944, respectively)		56,440			54,847
Total investments, at fair value (amortized cost $64,768 and $56,944, respectively)		63,567			54,847
Cash and cash equivalents		21,~~925~~163			2,105
Interest receivable		1,125			766
Accounts receivable		7			-
Dividend receivable		773			538
Interest receivable		1,457			766
Prepaid expenses and other assets		128			113
Dividend receivable		1,100			538
Total assets	$	61,391		$	58,369
Prepaid expenses and other assets		163			113
Total assets	$	67,457		$	58,369
Liabilities and stockholders' equity
Liabilities
Payable for investments purchased	$	2226,~~000~~993		$	19,502
Accounts payable and accrued expenses		~~161~~33			52
Due to advisor		-3			2
Loan origination fees, net		~~123~~106			141
Management fees payable		9981			79
Total liabilities		2227,~~383~~216			19,776
Commitments and contingencies
Stockholders' equity
Preferred stock, par value $0.01 per share, 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2018 and December 31, 2017		-			-
Preferred stock, par value $0.01 per share, 10,000,000 shares authorized, no shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively		-			-
Common stock, par value $0.01 per share, 50,000,000 shares authorized, 4,000,010 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively		40			40
Common stock, par value $0.01 per share, 50,000,000 shares authorized, 4,000,010 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively		40			40
Additional paid-in capital		39,928			39,928
Accumulated undistributed net realized gain (loss) on investments		3542			(4	)
Accumulated undistributed net investment income		1,~~052~~432			726
Net unrealized depreciation on investments		(21,~~047~~201	)		(2,097	)
Total stockholders' equity		3940,~~008~~241			38,593
Total liabilities and stockholders' equity	$	6167,~~391~~457		$	58,369
Net asset value per share	$	910.7506		$	9.65

See Notes to Unaudited Condensed Financial Statements.

PARKVIEW CAPITAL CREDIT, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except share information)

	For the Three Months Ended March 31,
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Investment income
From non-controlled/ unaffiliated investments:
Net interest income	$	~~598~~559		$	~~711~~682		$	1,157		$	1,393
Paid-in-kind interest		9278			~~302~~92			170			394
From controlled/ affiliated investments:
Dividend income		~~276~~329			71			605			142
Total investment income		966			~~1,084~~845			1,932			1,929
Operating expenses
Management fees		~~295~~321			~~238~~248			616			486
Professional fees		~~258~~187			~~253~~173			445			426
General and administrative expenses		~~189~~200			~~195~~185			389			380
Total expenses before expense waiver		~~742~~708			~~686~~606			1,450			1,292
Waiver of management fees		(~~102~~122	)		(6064	)		(224	)		(124	)
Total operating expenses		~~640~~586			~~626~~542			1,226			1,168
Net investment income		~~326~~380			~~458~~303			706			761
Realized and unrealized income (loss)
Net realized gain (loss) on investments		397			~~(10~~3	)		46			(7	)
Net change in unrealized appreciation (depreciation) on investments		50			(261	)
Net change in unrealized appreciation on investments		846			373			896			112
Total net realized and unrealized gain (loss) on investments		89			(271	)
Total net realized and unrealized gain on investments		853			376			942			105
Net increase in net assets resulting from operations	$	~~415~~1,233		$	~~187~~679		$	1,648		$	866
Per share information - basic and diluted
Weighted average - net increase in net assets resulting from operations #	$	0.10		$	0.05
Weighted average - net increase in net assets resulting from operations	$	0.31		$	0.18		$	0.41		$	0.23
Weighted average - net investment income per common share		0.0810			0.1208			0.18			0.20
Weighted average shares outstanding		4,000,010			3,~~800~~804,~~010~~454			4,000,010			3,802,232

See Notes to Unaudited Condensed Financial Statements.

PARKVIEW CAPITAL CREDIT, INC.

CONDENSED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

(in thousands, except share information)

	For the Three Months Ended March 31,
	For the Six Months Ended June 30,
	2018		2017
Increase from operations
Net investment income	$	~~326~~706	$	~~458~~761
Net realized gain (loss) on investments		3946		(107	)
Net change in unrealized appreciation (depreciation) on investments		50		(261	)
Net change in unrealized appreciation on investments		896		112
Net increase in net assets resulting from operations		~~415~~1,648		~~187~~866
Total increase in net assets		415		187
Issuance of common stock		-		2,000
Net increase in net assets from capital share transactions		-		2,000
Total increase in net assets		1,648		2,866
Net assets at beginning of period		38,593		35,765
Net assets at end of period	$	3940,~~008~~241	$	3538,~~952~~631
Net asset value per common share	$	910.7506	$	9.4666
Common shares outstanding, end of period		4,000,010		34,~~800~~000,010

See Notes to Unaudited Condensed Financial Statements.

PARKVIEW CAPITAL CREDIT, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

	For the Three Months Ended March 31,
	For the Six Months Ended June 30,
	2018			2017
Cash flows from operating activities
Net increase in net assets resulting from operations	$	~~415~~1,648		$	~~187~~866
Adjustments to reconcile net increase in net assets from operations to net cash provided by (used in) operating activities
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities
Purchases of investments		(2654,~~110~~854	)		(1733,~~535~~333	)
Paid-in-kind interest		(92170	)		(~~302~~394	)
Paydowns of investments		1,~~277~~834			1130
Sales of investments		2345,~~435~~441			1730,~~843~~338
Loan origination fee amortization		(1835	)		(5169	)
Net unrealized (appreciation) depreciation on investments		(50	)		261
Net unrealized appreciation on investments		(896	)		(112	)
Net amortization of premiums on investments		(1530	)		(2241	)
Realized loss (gain) on sold/repaid investments		(3945	)		107
Decrease (increase) in operating assets:
Interest receivable		(359	)		53
Accounts receivable		(7	)		-
Dividend receivable		(235	)		(37	)
Interest receivable		(691	)		(54	)
Receivable for investments sold and repaid		-			(3,458	)
Dividend receivable		(562	)		(73	)
Prepaid expenses and other assets		(15	)		(7	)
Receivable for investments sold and repaid		-			9
Prepaid expenses and other assets		(50	)		(20	)
Increase (decrease) in operating liabilities:
Payable for investments purchased		27,~~498~~491			~~496~~998
Accounts payable and accrued expenses		~~108~~(19	)		(1837	)
Due to advisor		1			-
Loan origination fees		-			33
Management fees payable		202			(251	)
Net cash provided by (used in) operating activities		820			(2,561	)
Net cash used in operating activities		(942	)		(1,853	)
Total increase (decrease) in cash		820			(2,561	)
Total decrease in cash		(942	)		(1,853	)
Cash and cash equivalents at beginning of period		2,105			5,491
Cash and cash equivalents at end of period	$	21,~~925~~163		$	23,~~930~~638
Supplemental disclosures of non-cash financing activies
Issuance of common stock	$	-			2,000

See Notes to Unaudited Condensed Financial Statements.

PARKVIEW CAPITAL CREDIT, INC.

CONDENSED SCHEDULE OF INVESTMENTS

(Unaudited)

(in thousands, except share information)

~~March 31~~June 30, 2018

Portfolio Company (a)

Industry

Spread Above Index (b)

Interest Rate

Maturity

Principal

Amortized Cost

Fair Value (c)

% of Net Assets

Senior Secured Loans - First Lien

Ebony Media Holdings, LLC

Media

N/A

12%, 2% PIK

(h)

5,~~748~~777

5,~~685~~724

5,~~516~~563

1413.18

Ebony Media Holdings, LLC

Media

N/A

(f)

11/11/2018

2,176

2,067

5.31

Ebony Media Holdings, LLC

Media

P + 4.00%

8.25%

10/31/2018

~~535~~890

12.42

Medi-fare Drug & Pharmaceutical Compounding, LLC

Healthcare

N/A

10%, 4% PIK

~~5/25/2018~~(j)

3,~~763~~786

3,~~760~~789

3,~~726~~777

9.64

Total Senior Secured Loans - First Lien

12,~~156~~579

1112,~~844~~297

30.45

Senior Secured Loans - Second Lien

Turning Point Brands, Inc. (d)

Tobacco

N/A

11.00%

8/17/2022

1,000

~~992~~993

1,020

2.65

Action Resources (g)

Specialized Freight Trucking

L + 10.00% PIK

11.00% PIK

4/29/2022

905

2.32

Action Resources (g)

Specialized Freight Trucking

8.00% PIK

8/31/2021

2,714

2,~~206~~226

5.75

Action Resources (g)

Specialized Freight Trucking

9.00% PIK

8/31/2021

2,171

~~912~~1,151

2.39

Transportation Demand Management, LLC

Charter Bus Industry

N/A

12%, 2% PIK

10/1/2021

5,~~128~~154

45,~~999~~102

12.87

Anchor Glass Container Corporation (d)

Manufacturing

L + 7.75%

8.75%

12/7/2024

500

496

~~488~~356

1.29

Total Senior Secured Loans - Second Lien

12,~~406~~433

10,~~530~~760

26.97

Portfolio Company (a)	Industry	Dividend Rate			Number of Shares		Amortized Cost		Fair Value (c)		% of Net Assets
Equity Investments
Langham Creek LLC; Preferred Units	Real Estate		14.00%	%		2,426,085		2,426		2,~~353~~232		65.05	%
Langham Creek LLC; Common Units	Real Estate		N/A			1,000		1		1		.0	%
Ebony Media Holdings, LLC; Warrants	Media		N/A			50,000		119		-		.0	%
Medi-fare Drug & Pharmaceutical Compounding, LLC; Warrants	Healthcare		N/A			5		5958		4941		.1	%
Transportation Demand Management; Warrants	Charter Bus Industry		N/A			34,000		-		-5		-
Action Resources; Common Units (g)	Specialized Freight Trucking		N/A			(i)		-		-		-
Lone Star Brewery Development, Inc.; Preferred Units	Real Estate		12.00%	%		2,~~615~~914		78,~~321~~159		78,~~707~~778		1921.8	%
Lone Star Brewery Development, Inc.; Common Units	Real Estate		N/A			1,000		2,000		12,~~956~~460		56.01	%
Total Equity Investments								1112,~~926~~763		1213,~~066~~517		3033.95	%

Portfolio Company (a)

Yield to Maturity

Maturity Date

Number of Shares

Principal

Amortized Cost

Fair Value (c)

% of Net Assets

U.S Government Securities

U.S. Treasury Bill (e)

1.531

47/5/2018

2227,~~003~~000,000

2226,~~000~~993

5667.41

Total U.S Government Securities

2226,~~000~~993

5667.41

Total Investments

5864,~~488~~768

5663,~~440~~567

~~144~~157.68

Liabilities in excess of other assets

(1723,~~432~~326

)

-4457.68

Net assets

3940,~~008~~241

100.0

See Notes to Unaudited Condensed Financial Statements.

(a) With the exception of the Company’s investments in Langham Creek LLC, Turning Point Brands, Inc. and Lone Star Brewery Development, Inc., all of the Company’s investments are issued by eligible U.S. portfolio companies, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company would be deemed to “control” a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. The Company would be deemed an “affiliated person” of a portfolio company if the Company owned 5% or more of the portfolio company’s outstanding voting securities. As of ~~March~~June 3130, 2018, the Company is an “affiliated person” of Langham Creek LLC by virtue of its ownership of voting securities of Langham Creek LLC. As of ~~March~~June 3130, 2018, the Company is deemed to be an “affiliated person” of and deemed to “control” Lone Star Brewery Development, Inc. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person of and deemed to control as of ~~March~~June 3130, 2018:

	Fair Value at								Net realized		Net Change in Unrealized			Fair Value at		For the ~~Three~~Six Months Ended ~~March~~June 3130, 2018
Portfolio Company	December 31, 2017		Purchases		Sales and Repayments		Accretion of Discount		~~realized~~ gain (loss)		Appreciation (Depreciation)			~~March~~June 3130, 2018		Interest Income		Fee Income		Dividend income
Equity Investment
Langham Creek LLC; Preferred Units	$	2,102	$	257	$	-	$	-	$	-	$	(6127	)	$	2,~~353~~232	$	-	$	-	$	88184
Langham Creek LLC; Common Units		1		-		-		-		-		-			1		-		-		-
Lone Star Brewery, Inc.; Preferred Units		4,205		34,~~326~~165		-		-		-		~~176~~408			78,~~707~~778		-		-		~~188~~417
Lone Star Brewery, Inc.; Common Units		1,956		-		-		-		-		-504			12,~~956~~460		-		-		-

(b) Certain investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or the U.S. Prime Rate (“P”) which generally reset monthly, quarterly, or semiannually. For each, the Company has provided the spread over LIBOR and the current contractual interest rate in effect at ~~March~~June 3130, 2018. Certain investments are subject to a LIBOR interest rate floor.

(c)	The fair value of the Company’s investments was determined in good faith by or under the guidance of the Company’s board of directors (the “Board”) pursuant to the Company’s valuation policies.

(d)	Investment is not self-originated.

(e) Position or portion thereof unsettled as of ~~March~~June 3130, 2018.

(f)	There is a 3% of principal fee for the short-term Ebony Media principal loan. On September 29, 2017, the note was increased by $425 upon which interest accrues at 15% per annum.

(g)	Asset is on non-accrual status.

(h)	The maturity date for the Ebony Media’s $3,897 and $1,851 principal loans are 5/5/2020 and 11/11/2018, respectively.
(i)	The Company owns 2.82% of Bedrock Holdings Group LLC, which is the holding company of Action Resources.

(h)	The maturity dates for the Ebony Media $3,917 and $1,860 principal loans are May 5, 2020 and November 11, 2018, respectively.

(i)	The Company owns 2.82% of Bedrock Holdings Group LLC, which is the holding company of Action Resources.

(j)	The Company is currently in negotiations with Medi-fare Drug & Pharmaceutical Compounding, LLC regarding repayment of the principal loan. The maturity date was May 25, 2018 and is currently operating on a 90-day extension.

See Notes to Unaudited Condensed Financial Statements.

PARKVIEW CAPITAL CREDIT, INC.

CONDENSED SCHEDULE OF INVESTMENTS

(in thousands, except share information)

December 31, 2017

Portfolio Company (a)	Industry	Spread Above Index (b)	Interest Rate		Maturity	Principal		Amortized Cost		Fair Value (c)		% of Net Assets
Senior Secured Loans - First Lien
Ebony Media Holdings, LLC	Media	N/A		12%, 2% PIK	(h)		5,719		5,649		5,489		14.2	%
Ebony Media Holdings, LLC	Media	N/A		(f)	11/11/2018		2,176		2,176		2,067		5.4	%
Ebony Media Holdings, LLC	Media	P + 4.00%		8.25%	10/31/2018		1,250		1,250		1,250		3.2	%
Medi-fare Drug & Pharmaceutical Compounding, LLC	Healthcare	N/A		10%, 4% PIK	5/25/2018		3,763		3,752		3,726		9.7	%
Total Senior Secured Loans - First Lien									12,827		12,532		32.5	%

Senior Secured Loans - Second Lien
Turning Point Brands, Inc. (d)	Tobacco	N/A		11.00%	8/17/2022		1,000		992		1,020		2.6	%
Lionbridge Technologies (d)	Translation and Interpretation Services	L + 9.75%		10.80%	2/28/2025		2,000		1,964		1,970		5.1	%
Action Resources (g)	Specialized Freight Trucking	L + 10.00% PIK		11.00% PIK	4/29/2022		905		905		905		2.3	%
Action Resources (g)	Specialized Freight Trucking	8.00% PIK		8.00% PIK	8/31/2021		2,714		2,714		2,206		5.7	%
Action Resources (g)	Specialized Freight Trucking	9.00% PIK		9.00% PIK	8/31/2021		2,171		2,171		912		2.4	%
Transportation Demand Management, LLC	Charter Bus Industry	N/A		12%, 2% PIK	10/1/2021		5,102		5,102		4,975		12.9	%
American Bath Group, LLC (d)	Manufacturing	L + 9.75%		10.75%	9/30/2024		2,000		1,932		2,008		5.2	%
Anchor Glass Container Corporation (d)	Manufacturing	L + 7.75%		8.75%	12/7/2024		500		496		507		1.3	%
Total Senior Secured Loans - Second Lien									16,276		14,503		37.5	%

Portfolio Company (a)	Industry	Dividend Rate		~~Number of Shares~~		Number of Shares		~~Amortized Cost~~		Amortized Cost		~~Fair Value (c)~~		Fair Value (c)		~~% of Net Assets~~		% of Net Assets
Equity Investments
Langham Creek LLC; Preferred Units	Real Estate	~~14.00%~~	14.00	%	~~2,168,600~~		2,168,600		~~2,169~~		2,169		~~2,102~~		2,102		~~5.4~~	%	5.4	%
Langham Creek LLC; Common Units	Real Estate	~~N/A~~	N/A		~~1,000~~		1,000		1		1		1		1		.0	%	.0	%
Ebony Media Holdings, LLC; Warrants	Media	~~N/A~~	N/A		~~50,000~~		50,000		~~119~~		119		-		-		.0	%	.0	%
Medi-fare Drug & Pharmaceutical Compounding, LLC; Warrants	Healthcare	~~N/A~~	N/A		5		5		59		59		49		49		.1	%	.1	%
Transportation Demand Management; Warrants	Charter Bus Industry	~~N/A~~	N/A		~~34,000~~		34,000		-		-		-		-		-		-
Action Resources; Common Units (g)	Specialized Freight Trucking	~~N/A~~	N/A		~~2.82~~	%	2.82	%	-		-		-		-		-		-
Lone Star Brewery Development, Inc.; Preferred Units	Real Estate	~~12.00%~~	12.00	%	~~1,427~~		1,427		~~3,994~~		3,994		~~4,205~~		4,205		~~10.9~~	%	10.9	%
Lone Star Brewery Development, Inc.; Common Units	Real Estate	~~N/A~~	N/A		~~1,000~~		1,000		~~2,000~~		2,000		~~1,956~~		1,956		~~5.1~~	%	5.1	%
Total Equity Investments									~~8,342~~		8,342		~~8,313~~		8,313		~~21.5~~	%	21.5	%

Portfolio Company (a)	Yield to Maturity			Maturity Date	Number of Shares		Principal		Amortized Cost		Fair Value (c)			% of Net Assets
U.S Government Securities
U.S. Treasury Bill (e)		1.085	%	1/11/2018		19,507,000		19,499		19,499		19,499			50.5	%
Total U.S Government Securities										19,499		19,499			50.5	%

Total Investments									$	56,944	$	54,847			142.0	%
Liabilities in excess of other assets												(16,254	)		-42.0	%
Net assets											$	38,593			100.0	%

(a)

With the exception of the Company’s investments in Langham Creek LLC, Turning Point Brands, Inc. and Lone Star Brewery Development, Inc., all of the Company’s investments are issued by eligible U.S. portfolio companies, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company would be deemed to “control” a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. The Company would be deemed an “affiliated person” of a portfolio company if the Company owned 5% or more of the portfolio company’s outstanding voting securities. As of December 31, 2017, the Company is an “affiliated person” of Langham Creek LLC by virtue of its ownership of voting securities of Langham Creek LLC.

As of December 31, 2017, the Company is deemed to be an “affiliated person” of and deemed to “control” Lone Star Brewery Development, Inc. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person of and deemed to control as of December 31, 2017:

Portfolio Company	Fair Value at December 31, 2016		Purchases		Sales and Repayments		Accretion of Discount		Net realized gain (loss)		Net Change in Unrealized Appreciation (Depreciation)			Fair Value at December 31, 2017		Interest Income		Fee Income		Dividend income
Equity Investment
Langham Creek LLC; Preferred Units	$	1,756	$	300	$	-	$	-	$	-	$	46		$	2,102	$	-	$	-	$	293
Langham Creek LLC; Common Units		1		-		-		-		-		-			1		-		-		-
Lone Star Brewery, Inc.; Preferred Units		-		3,994		-		-		-		211			4,205		-		-		209
Lone Star Brewery, Inc.; Common Units		-		2,000		-		-		-		(44	)		1,956		-		-		-

(b)

Certain investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or the U.S. Prime Rate (“P”) which generally reset monthly, quarterly, or semiannually. For each, the Company has provided the spread over LIBOR and the current contractual interest rate in effect at December 31, 2017. Certain investments are subject to a LIBOR interest rate floor.

(c)	The fair value of the Company’s investments was determined in good faith by or under the guidance of the Company’s board of directors (the “Board”) pursuant to the Company’s valuation policies.

(d)	Investment is not self-originated.

(e)	Position or portion thereof unsettled as of December 31, 2017.

(f)	There is a 3% of principal fee for the short-term Ebony Media principal loan. On September 29, 2017, the note was increased by $425 upon which interest accrues at 15% per annum.

(g)	Asset is on non-accrual status.

(h)	The maturity date for the Ebony Media’s $3,878 and $1,842 principal loans are May 5~~/5/~~, 2020 and November 11~~/11/~~, 2018, respectively.
(i)	The Company owns 2.82% of Bedrock Holdings Group LLC, which is the holding company of Action Resources.

See Notes to Unaudited Condensed Financial Statements.

PARKVIEW CAPITAL CREDIT, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share information)

NOTE A – ORGANIZATION AND BASIS OF PRESENTATION

Parkview Capital Credit, Inc. (the “Company”), was legally formed on November 25, 2014 (“Inception”) as a Maryland corporation and commenced its principal operations on April 24, 2015, commensurate with the raising of $20,000 through the sale of 2,000,000 shares of its common stock. 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, as amended (the “1940 Act”) ~~on February 12~~, ~~2016,~~ and elected to be treated for federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), beginning with the tax year ended June 30, 2017.

The Company is an investment company that follows the specialized accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 “Financial Services Investment Companies.”

The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”). Additionally, the accompanying unaudited financial statements of the Company and related financial information as of and for the three and six months ended ~~March~~June 3130, 2018 and 2017 have been prepared pursuant to the requirements for reporting in Article 10 of Regulation S-X. Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the ~~period~~periods included herein. 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, 2018.

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications: Certain amounts in the unaudited condensed financial statements for the three months ended March 31, 2017 have been reclassified to conform to the classifications used to prepare the unaudited condensed financial statements for the three months ended March 31, 2018. These reclassifications had no material impact on the Company’s condensed financial position, results of operations or cash flows, as previously reported.

Income Taxes: The Company has elected to be regulated as a BDC under the 1940 Act. The Company has also elected to be treated as a RIC under Subchapter M of the Code, beginning with the tax year ended June 30, 2017. As a RIC, the Company generally is not required to pay corporate level federal income taxes on any ordinary income or capital gains that it distributes to its stockholders as dividends. To qualify as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements. In addition, to qualify for RIC tax treatment, the Company must distribute to its stockholders, for each taxable year, at least 90% of its “investment company taxable income” for that year, which is generally its ordinary income plus the excess of its realized net short-term capital gains over its realized net long-term capital losses. As a result, any tax liability related to income earned and distributed by the Company represents obligations of the Company’s common stockholders and will not be reflected in the financial statements of the Company for the years in which it qualifies as a RIC.

Although the Company may not be subject to federal income taxes as a RIC, it may choose to retain a portion of its calendar year income. If so, the Company may be subject to a 4% excise tax on the amount retained. There was $7 of excise tax accrued as of three months ended March 31, 2018.

The Company evaluates tax positions taken or expected to be taken in the course of preparing its financial statements to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are reversed and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. All tax years are open for examination.

Revenue Recognition: Interest income, adjusted for amortization of premiums and accretion of discounts, is recorded on an accrual basis. Discounts or premiums are accreted or amortized, respectively, using the effective interest method as interest income. Dividend income is recognized on an accrual basis to the extent that the Company expects to collect such amount. Loan origination fees, original issue discount and market discount are capitalized and amortized as interest income over the respective term of the loan. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.

The Company places investments on non-accrual status when there is reasonable doubt that interest income will be collected. The Company considers many factors relevant to an investment when placing it on or removing it from non-accrual status including, but not limited to, the delinquency status of the investment, economic and business conditions, the overall financial condition of the underlying investment, the value of the underlying collateral, bankruptcy status, if any, and any other facts or circumstances relevant to the investment. If there is reasonable doubt that the Company will receive any previously accrued interest, then the interest income will be written-off. Payments received on non-accrual investments may be recognized as income or applied to principal depending upon the collectability of the remaining principal and interest. Non-accrual investments may be restored to accrual status when principal and interest become current and are likely to remain current based on management’s judgment.

The Company has loans and preferred securities in its portfolio that contain payment-in-kind (“PIK”) provisions. PIK represents interest or dividends that are accrued and recorded as interest or dividend income at the contractual rates, increases the loan or preferred equity principal on the respective capitalization dates, and is generally due at maturity. For the three and six months ended ~~March~~ 31June 30, 2018, the Company recognized PIK income of $78 and $170, respectively. For the three and six months ended June 30, 2017, the Company recognized PIK income of $92 and $~~302~~394, respectively.

Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized. The Company reports changes in fair value of investments that are measured at fair value as a component of the net change in unrealized appreciation ~~(depreciation)~~ on investments in the statements of operations.

Earnings per Share: 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 shares of common stock, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.

Investments: Investment transactions are accounted for on a trade-date basis. The Company considers trade date for investments not traded on a recognized exchange, or traded in the over-the-counter markets, to be the date on which the Company receives legal or contractual title to the asset and bears the risk of loss.

Investments in certain senior loans generate a fixed spread over floating base rates such as LIBOR or the U.S. Prime Rate. These floating base rates generally reset either monthly, quarterly or semi-annually.

Valuation of Portfolio Securities: The Company determines the net asset value per share of its common stock quarterly. The net asset value per share equals the value of the Company’s total assets minus liabilities and any preferred stock outstanding divided by the total number of shares of common stock outstanding. The Company’s investments are valued at the end of each fiscal quarter.

Substantially all of the Company’s investments are expected to be in loans that do not have readily ascertainable market prices. Investments for which market quotations are readily available are valued at such market quotations, which are generally obtained from an independent pricing service or multiple broker-dealers or market makers. In order to assist the ~~Company’s~~ Board in determining the fair value of assets that are not publicly traded or whose market prices are not readily available, Parkview Advisors, LLC (the “Advisor”) provides the Board with portfolio company valuations, which are based on relevant inputs, which may include but are not limited to, indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts, and valuations prepared by third party valuation services. The Company has retained independent valuation firms to assist the Board by performing certain limited third-party valuation services. In connection with each valuation determination, investment professionals from the Advisor prepare portfolio company valuations using sources and/or proprietary models, depending on the availability of information , on the Company’s assets and the type of asset being valued, all in accordance with the Company’s valuation policy. The participation of the Advisor in the valuation process could result in a conflict of interest, since the base management fee is based on the Company’s gross assets.

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 may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing its debt investments.

The Company’s equity interests in portfolio companies for which there is no liquid public market are valued at fair value. The Board, in its determination of fair value, may consider various factors, such as multiples of 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 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 Advisor’s management team, any approved independent third-party valuation specialists and the Board may also consider 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 Advisor’s management team, any approved independent third-party valuation specialists and the Board may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, and may apply discounts or premiums, where and as appropriate, due to the higher (or lower) financial risk and/or the smaller size of portfolio companies relative to comparable firms, as well as such other factors as the Board, in consultation with the Advisor’s management team and any approved independent third-party valuation specialists may consider relevant in assessing fair value. Generally, the value of the equity interests in public companies for which market quotations are readily available will be based upon the most recent closing public market price. Portfolio securities that carry certain restrictions on sale are typically valued at a discount from the public market value of the security.

When the Company receives warrants or other equity securities at nominal or no additional cost in connection with an investment in a debt security, the cost basis in the investment will be allocated between the debt securities and any such warrants or other equity securities received at the time of origination. The Board subsequently values these warrants or other equity securities received at their fair value.

The Company periodically benchmarks the bid and ask prices received from the third-party pricing services and/or dealers, as applicable, against the actual prices at which it purchases and sells investments. Based on the results of the benchmark analysis and the experience of management in purchasing and selling these investments, the Company believes that these prices are reliable indicators of fair value. However, because of the private nature of this marketplace (meaning actual transactions are not publicly reported), the Company believes that these valuation inputs are classified as Level 3 within the fair value hierarchy. The Company also uses independent valuation firms to assist the Board in determining fair value for securities for which it cannot obtain prevailing bid and ask prices through third-party pricing services or independent dealers, or where the Board otherwise determines that the use of such other methods is appropriate. The Company periodically benchmarks the valuations provided by the independent valuation firms against the actual prices at which the Company purchases and sells investments. The audit committee and Board review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation policy.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investment portfolio may differ from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

Fair Value of Financial Instruments: The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, receivables, accounts payable and accrued expenses, approximate fair value due to their short-term nature.

Recent Accounting Pronouncements: In ~~January~~February ~~2016~~2018, the FASB issued Accounting Standards Update (“ASU”) ~~2016~~2018-0103, “~~Financial~~Technical Corrections and Improvements to Financial Instruments –— Overall (Subtopic 825-10),: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU ~~2016~~2018-0103”), which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments., ASU ~~2016~~2018-0103 will be effective for ~~annual~~fiscal ~~periods~~years beginning after December 15, 2017, and interim periods within those fiscal ~~annual~~years ~~periods~~ beginning after ~~December~~ June 15, ~~2017~~2018. ~~and~~The ~~early~~Company ~~adoption~~ is ~~not~~currently ~~permitted.~~evaluating ~~The~~the ~~Company~~impact ~~has adopted~~ this standard ~~and~~will ~~there~~have ~~has been no material impact~~ on its financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and early adoption is permitted. The Company has adopted this standard and there has been no material impact on its financial statements.

In February 2018, the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2018-03”), which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments, ASU 2018-03 will be effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. The Company is currently evaluating the impact this standard will have on its financial statements.

Distributions: Distributions to the Company’s stockholders are recorded as of the record date. The Company intends to distribute net realized capital gains, if any, at least annually.

The determination of the tax attributes of the distributions is made at the end of the tax year based upon the taxable income for the full tax year and the distributions paid during the full tax year. The Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including proceeds from the sale of shares of the Company’s common stock, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, and dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies. The Company has not established limits on the amount of funds it may use from available sources to make distributions. During certain periods, the Company’s distributions may exceed its earnings. As a result, it is possible that a portion of the distributions the Company makes may represent a return of capital. A return of capital generally is a return of a stockholder’s investment rather than a return of earnings or gains derived from the Company’s investment activities. Each year a statement on Form 1099-DIV identifying the sources of the distributions (i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital, which is a nontaxable distribution) will be mailed to the Company’s stockholders. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.

NOTE C – RELATED PARTY TRANSACTIONS

Advisory Agreement

Pursuant to the Investment Advisory Agreement with the Advisor (the “Advisory Agreement”), the Advisor provides credit analysis, structuring capability and transactional experience. The fees associated with the Advisory Agreement consist of a base management fee and incentive fees. The Advisor is owned by SKW Financial, LLC, an entity controlled by the Company’s Chief Executive Officer.

The management fee is calculated at an annual rate of 2.00% of the end-of-period gross assets payable monthly in arrears if the Company’s gross assets are less than $250,000; 1.75% of the end-of period gross assets if the Company’s gross assets are equal to or greater than $250,000 but less than $750,000; and, 1.50% of the end-of period gross assets if the Company’s gross assets are equal to or greater than $750,000. For purposes of calculating the management fee, the term “gross assets” includes any assets acquired with the proceeds of leverage. As a result, the Advisor will benefit when the Company incurs debt or uses leverage. The Advisory Agreement provides that the management fee is calculated based on the average value of gross assets at the end of the two most recently completed months. The Company has clarified its management fee calculation so that the management fee is calculated by averaging the value of the Company’s gross assets at the end of the two most recently completed quarters, and appropriately adjusting for any share issuances occurring during any month of the current quarter. Management fees for any partial month are appropriately prorated. In order to meet the diversification tests required to qualify as a RIC, the Company acquires short-term U.S. Treasury Bills. The following purchases of short-term U.S. Treasury bills had the effect of increasing management fees payable to the Advisor, all of which were waived by the Advisor:

Date acquired	Amount acquired
Impact in 2018
June 28, 2018	$	26,993
March 29, 2018	$	22,000
December 28, 2017	$	19,500
Impact in 2017
June 29, 2017	$	13,000
March 29, 2017	$	12,500
December 29, 2016	$	12,000

For the three and six months ended ~~March 31~~June 30, 2018, the Company incurred management fees of $321 and $616, respectively, gross of the fee waiver of $122 and $224, respectively. For the three and six months ended June 30, 2017, the Company incurred management fees of $~~295~~248 and $~~238~~486, respectively, gross of the fee waiver of $~~102~~64 and $60124, respectively.

The incentive fee is divided into two parts: (i) an incentive fee on income and (ii) an incentive fee on capital gains.

The incentive fee on income is calculated and payable quarterly in arrears based upon the Company’s “pre-incentive fee net investment income” for the immediately preceding quarter. The incentive fee on income is subject to a hurdle rate, measured quarterly and expressed as a rate of return on adjusted capital at the beginning of the most recently completed calendar quarter, of 1.75% (7.0% annualized), subject to a “catch up” feature. For the three and six months ended ~~March~~June 3130, 2018 and 2017, the Company did not incur any incentive fees on income.

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% of realized capital gains on a cumulative basis from inception, calculated as of the end of the applicable period, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gains incentive fees. For the three and six months ended ~~March~~June 3130, 2018 and 2017, the Company did not incur any incentive fees on capital gains.

During the three months ended ~~March~~June 3130, 2018 and 2017, the Company reimbursed the Advisor $3647 and $3833, respectively, for amounts owed by the Company to third party providers of services paid by the Advisor on the Company’s behalf and reimbursements for ~~company~~Company-related travel. During the six months ended June 30, 2018 and 2017, the Company reimbursed the Advisor $84 and $71, respectively, for amounts owed by the Company to third party providers of services paid by the Advisor on the Company’s behalf and reimbursements for Company-related travel. There were no$3 ~~amounts~~and $2 accrued to the Advisor as of ~~March~~June 3130, 2018 and December 31, 2017, respectively.

License Agreement

On March 11, 2015, the Company entered into a license agreement (the “License Agreement”) with the Advisor, pursuant to which the Company was granted a non-exclusive license to use the name “Parkview.” Under the License Agreement, the Company has a right to use the “Parkview” name and logo, as long as the Advisor or one of its affiliates remains the Company’s investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Parkview” name or logo.

NOTE D – INVESTMENT PORTFOLIO

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~~June 30, 2018 and December 31, 2017:

	March 31, 2018					December 31, 2017
	June 30, 2018					December 31, 2017
	Fair Value		Percentage of Portfolio			Fair Value		Percentage of Portfolio
Charter Bus Industry	$	45,~~999~~107		98	%	$	4,975		9	%
Healthcare		3,~~775~~818		76	%		3,775		7	%
Manufacturing		~~488~~356		1	%		2,515		5	%
Media		8,~~118~~520		1413	%		8,806		16	%
Real Estate		1213,~~017~~471		21	%		8,264		15	%
Specialized Freight Trucking		4,~~023~~282		7	%		4,023		6	%
Tobacco		1,020		2	%		1,020		2	%
Translation and Interpretation Services		-		-			1,970		4	%
U.S. Government Securities		2226,~~000~~993		3942	%		19,499		36	%
	$	5663,~~440~~567		100	%	$	54,847		100	%

The following table summarizes the amortized cost and fair value of the investment portfolio as of ~~March~~June 3130, 2018 and December 31, 2017:

March 31, 2018	Amortized Cost(a)		Percentage of Portfolio			Fair Value		Percentage of Portfolio
June 30, 2018	Amortized Cost(a)		Percentage of Portfolio			Fair Value		Percentage of Portfolio
Senior Secured Loans - First Lien	$	12,~~156~~579		2119	%	$	1112,~~844~~297		2119	%
Senior Secured Loans - Second Lien		12,~~406~~433		2119	%		10,~~530~~760		1917	%
Equity Investments		1112,~~926~~763		20	%		1213,~~066~~517		21	%
U.S. Government Securities		2226,~~000~~993		3842	%		2226,~~000~~993		3943	%
Total	$	5864,~~488~~768		100	%	$	5663,~~440~~567		100	%
December 31, 2017	Amortized Cost(a)		Percentage of Portfolio			Fair Value		Percentage of Portfolio
Senior Secured Loans - First Lien	$	12,827		23	%	$	12,532		23	%
Senior Secured Loans - Second Lien		16,276		28	%		14,503		26	%
Equity Investments		8,342		15	%		8,313		15	%
U.S. Government Securities		19,499		34	%		19,499		36	%
Total	$	56,944		100	%	$	54,847		100	%

December 31, 2017	Amortized Cost(a)		Percentage of Portfolio			Fair Value		Percentage of Portfolio
Senior Secured Loans - First Lien	$	12,827		23	%	$	12,532		23	%
Senior Secured Loans - Second Lien		16,276		28	%		14,503		26	%
Equity Investments		8,342		15	%		8,313		15	%
U.S. Government Securities		19,499		34	%		19,499		36	%
Total	$	56,944		100	%	$	54,847		100	%

(a)

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

NOTE E – FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that the Company would receive upon selling an investment or ~~pay~~paying to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous market for the investment. Accounting guidance emphasizes that valuation techniques maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the investment as of the measurement date. The three levels are defined as follows:

Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 — Valuations based on inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable at the measurement date. This category includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in non-active markets including actionable bids from third parties for privately held assets or liabilities, and observable inputs other than quoted prices such as yield curves and forward currency rates that are entered directly into valuation models to determine the value of derivatives or other assets or liabilities.

Level 3 — Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date.

The inputs for the determination of fair value may require significant management judgment or estimation and are based upon management’s assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the market or income approach and may involve pricing models whose inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates, beta and EBITDA multiples. The information may also include pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level 3 information, assuming no additional corroborating evidence.

Pricing inputs and weightings applied to determine value require subjective determination. Accordingly, valuations do not necessarily represent the amounts that may eventually be realized from sales or other dispositions of investments.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table presents the fair value measurements of the investment portfolio, by major class according to the fair value hierarchy, as of ~~March~~June 3130, 2018:

Level 1

Level 2

Level 3

Total

Senior Secured Loans - First Lien

1112,~~844~~297

Senior Secured Loans - Second Lien

10,~~530~~760

Equity Investments

1213,~~066~~517

U.S. Government Securities

2226,~~000~~993

3436,~~440~~574

5663,~~440~~567

The following table presents the fair value measurements of the investment portfolio, by major class according to the fair value hierarchy, as of December 31, 2017:

	Level 1		Level 2		Level 3		Total
Senior Secured Loans - First Lien	$	-	$	-	$	12,532	$	12,532
Senior Secured Loans - Second Lien		-		-		14,503		14,503
Equity Investments		-		-		8,313		8,313
U.S. Government Securities		19,499		-		-		19,499
	$	19,499	$	-	$	35,348	$	54,847

The following table provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the ~~three~~six months ended ~~March~~June 3130, 2018:

	Senior Secured Loans First Lien			Senior Secured Loans Second Lien			Equity Investments		Total
Fair value beginning of period	$	12,532		$	14,503		$	8,313	$	35,348
Purchases		~~524~~1,437			-			34,~~584~~423		45,~~108~~860
Net realized gain		-			39			-		39
Amortization of premium		1429			1			-		1530
Paid in kind interest		67118			2552			-		92170
Sales		-			(3,935	)		-		(3,935	)
Paydowns		(1,~~277~~834	)		-			-		(1,~~277~~834	)
Net change in unrealized appreciation (depreciation)		~~(16~~15	)		~~(103~~100	)		~~169~~781		50896
Fair value end of period	$	1112,~~844~~297		$	10,~~530~~760		$	1213,~~066~~517	$	3436,~~440~~574
The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date	$	~~(16~~15	)	$	~~(21~~181	)	$	~~168~~781	$	~~131~~977

During the ~~three~~six months ended ~~March~~June 3130, 2018, the Company did not have any transfers between levels.

The following provides a reconciliation of the beginning and ending balances for total investments that use Level 3 inputs for the ~~three~~ six months ended ~~March~~June 3130, 2017:

	Senior Secured Loans First Lien			Senior Secured Loans Second Lien			Equity Investments		Total
Fair value beginning of period	$	13,317		$	14,833		$	1,805	$	29,955
Purchases		2,091			2,950			-4,800		59,~~041~~841
Net realized gain (loss)		1821			(2827	)		-		(106	)
Amortization of premium		1932			39			-		2241
Paid in kind interest		65131			~~237~~263			-		~~302~~394
Sales		(4,345	)		(1,500	)		-		(5,845	)
Paydowns		-(3	)		(1127	)		-		(1130	)
Net change in unrealized (appreciation) depreciation		252			(~~263~~88	)		-148		~~(261~~112	)
Fair value end of period	$	11,~~167~~296		$	16,~~221~~413		$	16,~~805~~753	$	2934,~~193~~462
The amount of total gains or losses for period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date	$	~~(16~~34	)	$	(~~292~~117	)	$	-147	$	~~(308~~64	)

During the ~~three~~six months ended ~~March~~June 3130, 2017, the Company did not have any transfers between levels.

The following table presents the quantitative information about Level 3 fair value measurements of the investment portfolio, as of ~~March~~ 31June 30, 2018:

Fair Value

Valuation Techniques

Unobservable input

Range

~~Weighted Average~~

Weighted Average

Senior Secured Loans - First Lien

1112,~~844~~297

Market comparables

Market yield (%)

~~93.9% - 100.3%~~

94.4% - 100.2%

~~96.8%~~

97.4%

EBITDA Multiples (x)

~~2.8x - 3.8x~~

2.8x - 4.0x

~~3.1x~~

3.2x

Senior Secured Loans - Second Lien

1,~~508~~376

Market quotes

Indicative Dealer Quotes

~~97.0% - 102.5%~~

69.5% - 102.5%

~~100.5%~~

94.0%

Senior Secured Loans - Second Lien

9,~~022~~384

Market comparables

Market yield (%)

~~31.0% - 102.3%~~

39.0% - 102.3%

~~88.1%~~

89.3%

EBITDA Multiples (x)

~~0.70x - 15x~~

0.65x - 12.1x

~~8.3x~~

6.6x

Equity Investments

1213,~~066~~517

Market comparables

Market yield (%)

~~23.6% - 144.3%~~

83.0% - 123.4%

~~102.4%~~

107.7%

Book Value Multiples (x)

~~1.0x -3.8x~~

1.0x -12.1x

~~1.1x~~

1.1x

The following table presents the quantitative information about Level 3 fair value measurements of the investment portfolio, as of December 31, 2017:

Fair Value

Valuation Techniques

Unobservable input

Range

Weighted Average

Senior Secured Loans - First Lien

12,532

Market comparables

Market yield (%)

93.9% - 100.3%

97.0%

EBITDA Multiples (x)

2.8x - 3.8x

3.1x

Senior Secured Loans - Second Lien

5,505

Market quotes

Indicative Dealer Quotes

98.0% - 102.5%

100.1%

Senior Secured Loans - Second Lien

8,998

Market comparables

Market yield (%)

31.0% - 102.3%

88.1%

EBITDA Multiples (x)

0.70x - 15x

8.3x

Equity Investments

8,313

Market comparables

Market yield (%)

23.6% - 144.3%

101.3%

Book Value Multiples (x)

1.0x -3.8x

1.1x

NOTE F – SIGNIFICANT SUBSIDIARIES

In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, the Company must determine which of its unconsolidated controlled portfolio companies, if any, are considered “significant subsidiaries.” In evaluating these investments, there are three tests utilized to determine if any of the Company’s controlled investments are considered significant subsidiaries: the asset test, the income test and the investment test. Rule 3-09 of Regulation S-X requires separate audited financial statements of an unconsolidated subsidiary in an annual report if any of the three tests exceed 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information in an annual report if any of the three tests exceeds 10%. After performing this analysis, the Company determined that for the year ended December 31, 2017, one of its portfolio companies, Lone Star Brewery Development, Inc. ("Lone Star"), is a significant subsidiary. Accordingly, unaudited financial information for the three and six months ended ~~March~~June 3130, 2018 has been included below. Since Lone Star was not acquired by the Company until June 29, 2017, the Company has not provided unaudited financial information for the ~~three~~period ~~months~~from ~~ended~~June ~~March~~29, 312017 through June 30, 2017.

	March 31, 2018			December 31, 2017
	June 30, 2018			December 31, 2017
Balance Sheet
Current assets	$	~~934~~1,271		$	3
Noncurrent assets	$	15,726		$	18,505
Current liabilities	$	4,~~465~~997		$	27,344
Noncurrent liabilities	$	19,000		$	-
Total deficit	$	(67,~~805~~000	)	$	(8,836	)
Statement of Operations
Revenue	$	-
Expenses	$	1,478
Other income	$	368
Net loss	$	(1,110	)

	For the Three Months Ended			For the Six Months Ended
	June 30, 2018			June 30, 2018
Statement of Operations
Revenue	$	-		$	-
Expenses	$	804		$	2,282
Other income	$	-		$	368
Net loss	$	(804	)	$	(1,914	)

On February 16, 2018, Lone Star entered into a loan agreement (the “Loan Agreement”) with BI 28 LLC (the “Lender”), a subsidiary of BridgeInvest. In connection with the Loan Agreement, the Lender required that the Company guarantee the performance of Lone Star under the terms of the Loan Agreement. On February 8, 2018, the Board of Directors of the Company authorized the Company to enter into a Guaranty, whereby the Company agreed to guarantee to the Lender the performance of Lone Star under the Loan Agreement. The loan has an 18-month term, which term can be extended by an additional six months. Assuming the loan has a duration of two years, the Company’s aggregate obligation as a result of its 100% ownership of Lone Star would be $14,300, which includes interest payments and repayment of principal.

On February 16, 2018, Lone Star entered into a loan agreement (the “Loan Agreement”) with BI 28 LLC (the “Lender”), a subsidiary of BridgeInvest. In connection with the Loan Agreement, the Lender required that the Company guarantee the performance of Lone Star under the terms of the Loan Agreement. On February 8, 2018, the Board of Directors of the Company authorized the Company to enter into a Guaranty, whereby the Company agreed to guarantee to the Lender the performance of Lone Star under the Loan Agreement. The Loan has an 18-month term, which term can be extended by an additional six months. Assuming the Loan has a duration of two years, the Company’s aggregate obligation as a result of its 100% ownership of Lone Star would be $14,300, which includes interest payments and repayment of principal.

NOTE G - FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights of the Company for the ~~three~~six months ended ~~March~~June 3130, 2018 and 2017:

	March 31,
	June 30,
	2018			2017
Per share data
Net asset value, beginning of period	$	9.65		$	9.41
Results of operations (a)
Net investment income		0.0918			0.1220
Net realized gain on investments		0.01			-
Net change in unrealized depreciation on investments		0.00			(0.07	)
Net change in unrealized appreciation on investments		0.22			0.03
Net increase in net assets resulting from operations		0.1041			0.0523
Total increase in net assets		0.10			0.05
Capital share transactions
Net asset value, end of period	$	9.75		$	9.46
Issuance of common stock (b)		-			0.02
Shares outstanding at end of period		4,000,010			3,800,010
Total increase in net assets		0.41			0.25
Total return (b)		1.07	%		0.52	%
Net asset value, end of period	$	10.06		$	9.66
Ratio/Supplemental data (c)
Shares outstanding at end of period		4,000,010			4,000,010
Net assets, end of period		39,008			35,952
Total return (c)		4.18	%		2.33	%
Ratio of operating expenses to average net assets (d)		1.65	%		1.75	%
Ratio/Supplemental data (d)
Ratio of net investment income to average net assets		0.84	%		1.28	%
Net assets, end of period		40,241			38,631
Portfolio turnover		11.18	%		17.34	%
Ratio of operating expenses to average net assets (e)		3.11	%		3.14	%
Ratio of net investment income to average net assets		1.79	%		2.05	%
Portfolio turnover		16.49	%		19.65	%

(a)

Per share data was derived by using the weighted average shares outstanding during the applicable period.

(b) The ~~total~~issuance ~~return~~of ~~for~~common ~~the~~stock ~~three~~on ~~months~~a ~~ended~~per ~~March~~share ~~31,~~basis ~~2018~~reflects ~~and~~the ~~2017~~incremental ~~was~~net ~~calculated~~asset byvalue ~~taking~~change as a result of the ~~increase~~issuance inof ~~net~~shares ~~assets~~of ~~resulting~~common ~~from~~stock. ~~operations~~The issuance of ~~the~~common ~~Company~~stock ~~for~~at ~~the~~a ~~period~~price ~~divided~~that byis greater than the ~~average~~net asset value per share results in an increase in net ~~assets~~asset ~~during~~value ~~the~~per ~~period~~share.

(c) The ~~financial~~total ~~information~~return ~~has~~for ~~not~~the ~~been~~six ~~annualized~~months inended ~~computing~~June ~~ratios~~30, 2018 and ~~may~~2017 ~~not~~was becalculated ~~indicative~~by taking the increase in net assets resulting from operations of ~~full~~the ~~year~~Company ~~results~~for the period divided by the average net assets during the period.

(d) The ~~effect~~financial ofinformation ~~the~~has ~~management~~not ~~fee~~been ~~waiver~~annualized ~~discussed~~ in ~~Note~~computing Cratios ~~is 0.26%~~ and ~~0.17%~~may ~~for~~not ~~the~~be ~~three~~indicative ~~months~~of ~~ended~~full ~~March~~year ~~31, 2018 and 2017, respectively~~results.

(e)

The effect of the management fee waiver discussed in Note C is 0.57% and 0.33% for the six months ended June 30, 2018 and 2017, respectively.

NOTE H – SUBSEQUENT EVENTS

Management performed an evaluation of the Company’s activity through the date the financial statements were issued and has determined that there have been no events that have occurred that would require adjustments to the Company’s disclosures in the financial statements.

On August 8, 2018, the Board, including a majority of the directors who are not parties to the Advisory Agreement or interested persons of either party, approved the annual renewal of the Advisory Agreement through August 13, 2019.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This report contains forward looking statements that involve substantial risks and uncertainties. These forward looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward looking statements including, without limitation:

●

The effect of an economic downturn on our portfolio companies’ ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies;

●

a contraction of available credit, which could impair our lending and investment activities;

●

interest rate volatility, which could adversely affect our results, particularly if we elect to use leverage as part of our investment strategy;

●

our future operating results;

●

our business prospects and the prospects of our portfolio companies;

●

our contractual arrangements and relationships with third parties;

●

the ability of our portfolio companies to achieve their objectives;

●

competition with other entities for investment opportunities;

●

the speculative and illiquid nature of our investments;

●

the use of borrowed money to finance a portion of our investments;

●

the adequacy of our financing sources and working capital;

●

the costs associated with being a public entity;

●

the loss of key personnel;

●

the timing of cash flows, if any, from the operations of our portfolio companies;

●

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

●

our ability to attract and retain highly talented professionals that can provide services to our Advisor ;

●

our ability to qualify and maintain our qualification as a RIC under Subchapter M of the Code and as a BDC; and

●

the effect of legal, tax and regulatory changes.

Although we believe that the assumptions on which these forward looking statements are based are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, the forward looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward looking statements, or any other information contained herein, except as required by applicable law. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, or the Exchange Act, which preclude civil liability for certain forward looking statements are not applicable to us since we are a BDC under the 1940 Act. As used herein, the terms “we,” “our” and “us” refer to Parkview Capital Credit, Inc.

Overview

We were incorporated under the laws of the State of Maryland on November 25, 2014. We have elected to be regulated as a BDC under the 1940 Act and treated as a RIC, for federal income tax purposes. As such, we are required to comply with various regulatory requirements, such as the requirement to invest at least 70% of our assets in “qualifying assets,” source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our taxable income and tax-exempt interest.

All amounts presented are in thousands, except share ~~and per share~~ data.

Revenues

We generate revenues in the form of interest income from the debt securities we hold and dividends and capital appreciation on either direct equity investments or equity interests obtained in connection with originating loans, such as options, warrants or conversion rights. The debt we invest in will typically not be rated by any rating agency, but if it were, it is likely that such debt would be below investment grade. We intend to structure our debt investments with interest payable quarterly, semi-annually or annually, but we may structure certain investments with terms to provide for longer interest payment periods or to allow interest to be paid by adding amounts due to the principal balance of the loan, resulting in deferred cash receipts. In addition, we may also generate revenue in the form of commitment, loan origination, structuring or diligence fees, fees for providing managerial assistance to our portfolio companies, and possibly consulting fees. Certain of these fees may be capitalized and amortized as additional interest income over the life of the related loan.

Expenses

All of our investment professionals and staff of our Advisor, when and to the extent engaged in providing us investment advisory and management services, and the base compensation, bonus and benefits, and the routine overhead expenses, of such personnel allocable to such services, are provided and paid for by our Advisor.

We bear all other costs and expenses of our operations, administration and transactions, including, but not limited to, those relating to:

●

organization expenses;

●

calculating our net asset value (including the cost and expenses of any independent valuation firms);

●

expenses, including travel expense, incurred by our Advisor, its investment professionals, or payable to third parties, performing due diligence on prospective portfolio companies;

●

the costs of the offerings of common shares and other securities, if any;

●

the base management fee and any incentive fee;

●

certain costs and expenses relating to distributions paid on our shares;

~~● administration reimbursements payable under our Advisory Agreement;~~20

● ~~debt~~administration ~~service~~reimbursements ~~and~~payable ~~other~~under ~~costs~~our ofAdvisory ~~borrowings or other financing arrangements~~Agreement;

20● debt service and other costs of borrowings or other financing arrangements;

●

the allocated costs incurred by our Advisor in providing managerial assistance to those portfolio companies that request it;

●

amounts payable to third parties relating to, or associated with, making or holding investments;

●

transfer agent and custodial fees;

●

costs of hedging;

●

commissions and other compensation payable to brokers or dealers;

●

federal, state and local taxes;

●

independent director fees and expenses;

●

costs of preparing financial statements and maintaining books and records and filing reports or other documents with the SEC (or other regulatory bodies) and other reporting and compliance costs, including registration and listing fees, and the compensation of professionals responsible for the preparation of the foregoing;

●

the costs of any reports, proxy statements or other notices to our stockholders (including printing and mailing costs), the costs of any stockholders’ meetings and the compensation of investor relations personnel responsible for the preparation of the foregoing and related matters;

●

our fidelity bond;

●

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

●

indemnification payments;

●

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

●

all other expenses reasonably incurred by us in connection with making investments and administering our business.

From time to time, our Advisor may pay amounts owed by us to third-party providers of goods or services. We will subsequently reimburse our Advisor for such amounts paid on our behalf. In addition, we reimburse the Advisor for the allocable portion of the compensation paid by the Advisor (or its affiliates) to our chief compliance officer and chief financial officer (based on the percentage of time such individuals devote, on an estimated basis, to the business and affairs of the Company). All of these expenses are ultimately borne by our stockholders.

Portfolio and Investment Activity

The fair value of our investments was approximately $3436,~~440~~574 (excluding $2226,~~000~~993 held in U.S. Treasury Bills) and $29,~~193~~955 (excluding $1211,~~495~~999 held in U.S. Treasury Bills) in 8 and 11 12 portfolio companies as of ~~March~~June 3130, 2018 and ~~March 31,~~ 2017, respectively. Our investment activity (including U.S. Treasury Bills) for the six ~~three~~ months ended ~~March~~June 3130, 2018 and 2017 is as follows (information presented herein is at amortized cost unless otherwise indicated):

	Three Months Ended March 31,
	Six Months Ended June 30,
	2018			2017
Amortized cost of investments, beginning	$	56,944		$	44,036
Cost of investments purchased		2654,~~110~~854			1735,~~535~~333
Paid-in-kind interest		92170			~~302~~394
Proceeds from sales and repayments of investments		(2447,~~712~~275	)		(1730,~~854~~367	)
Net amortization of premium on investments		1530			2241
Realized gain (loss) on sold/repaid investments		3945			(107	)
Amortized cost of investments, ending	$	5864,~~488~~768		$	4449,~~031~~430

Refer to “Part I. Financial Information, Item 1. Financial Statements – Note D – Investment Portfolio” of this quarterly report on Form 10-Q for a summary of the composition of our portfolio at amortized cost and fair value as of ~~March~~ 31June 30, 2018 and December 31, 2017.

As of ~~March~~June 3130, 2018 and 2017, the investments in our portfolio were purchased at a weighted average price of ~~100~~99.96% and 99.45% of par value, respectively. The weighted average yields, based on the amortized cost and fair value of our portfolio as of ~~March~~June 3130, 2018, were 911.72% and 911.84%, respectively, and as of ~~March~~June 3130, 2017, were 11.535%, and 11.192%, respectively.

Our investment in Action Resources is on non-accrual. Action Resources represents 76.137% of our portfolio at fair value as of ~~March 31~~June 30, 2018.

Direct Origination

We intend to leverage our Advisor’s industry relationships to directly source investment opportunities. Such investments are originated or structured for us or made by us and are not generally available to the broader market. These investments may include both debt and equity components. We believe directly originated investments may offer higher returns and more favorable protections than broadly syndicated transactions. The following tables present certain selected information regarding the direct originations entered into during the ~~three~~six months ended ~~March~~June 3130, 2018 and the year ended December 31, 2017:

New Direct Originations	For the Three Months Ended March 31, 2018			For the Year Ended December 31, 2017
	For the Six Months Ended			For the Year Ended
Total commitments (including unfunded commitments)	$	4,109		$	9,719
New Direct Originations	June 30, 2018			December 31, 2017
Total commitments (including unfunded commitments)	$	-		$	9,719
Paid-in-kind interest		-			-
Investment paydowns		~~(1,240~~-	)		-
Net direct origination	$	~~2,869~~-		$	9,719

	For the Three Months Ended					For the Year Ended
	For the Six Months Ended					For the Year Ended
	March 31, 2018					December 31, 2017
	June 30, 2018					December 31, 2017
	Commitment					Commitment
New Direct Originations by Asset Class	Amount		Percentage			Amount		Percentage
Senior Secured Loans - First Lien	$	~~525~~-		13-	%	$	3,425		35	%
Senior Secured Loans - Second Lien		-		-			-		-
Equity Investments		~~3,584~~-		87-	%		6,294		65	%
		4,109		100	%		9,719		100	%
		-		-			9,719		100	%

	For the Three Months Ended March 31, 2018			For the Year Ended December 31, 2017
	For the Six Months Ended June 30, 2018			For the Year Ended December 31, 2017
Average New Direct Origination Commitment Amount	$	~~1,370~~-		$	2,430
Weighted Average Maturity for New Direct Originations		~~0.59 years~~			0.86 years
Gross Portfolio Yield (based on amortized cost) of New Direct Originations Funded during Period		~~11.6~~-	%		9.5	%

The following table presents certain selected information regarding our direct originations as of ~~March~~June 3130, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
Characteristics of All Direct Originations held in Portfolio	June 30, 2018			December 31, 2017
Characteristics of All Direct Originations held in Portfolio
Number of Portfolio Companies		6			6
Average Annual EBITDA of Portfolio Companies	$	6,~~000~~930		$	7,030
Average Leverage Through Tranche of Portfolio Companies - Excluding Equity/Other and Collateralized Securities (1)		86.23x	x		5.99x	x
Gross Portfolio Yield (based on amortized cost) of Funded Direct Originations		11.8	%		11.7	%

(1) Average Leverage Through Tranche of Portfolio Companies-Excluding Equity-/Other and Collateralized Securities is 2.89x as of both ~~March~~ 31June 30, 2018 and December 31, 2017 excluding the securities that are currently on non-accrual.

Portfolio Composition by Strategy and Industry

Although our primary focus is to invest in directly originated transactions, in certain circumstances we will also invest in the broadly syndicated loan and high yield markets. Broadly syndicated loans and bonds are generally more liquid than our directly originated investments and provide a complement to our less liquid strategies.

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:

	March 31, 2018					December 31, 2017
	June 30, 2018					December 31, 2017
Portfolio Composition by Strategy	Fair Value		Percentage of Portfolio			Fair Value		Percentage of Portfolio
Direct Origination	$	3235,~~932~~198		5855	%	$	29,843		54	%
Broadly Syndicated		1,~~508~~376		32	%		5,505		10	%
U.S. Government Securities		2226,~~000~~993		3943	%		19,499		36	%
	$	5663,~~440~~567		100	%	$	54,847		100	%

Refer to “Part I. Financial Information, Item 1. Financial Statements – Note D – Investment Portfolio” of this quarterly report on Form 10-Q for a description of investments by industry classification and the percentage, by fair value, of the total portfolio assets in such industries.

Portfolio Asset Quality

In addition to various risk management and monitoring tools, our Advisor uses an investment rating system to characterize and monitor the expected level of returns on each investment in our portfolio. Our Advisor uses an investment rating scale of 1 to 5. The following is a description of the conditions associated with each investment rating:

Investment Rating		Summary Description
1		Investment exceeding expectations and/or capital gain expected.
2		Performing investment generally executing in accordance with the portfolio company’s business plan—full return of principal and interest expected. Each investment is initially rated 2.
3		Performing investment requiring closer monitoring.
4		Underperforming investment—some loss of interest or dividend possible, but still expecting a positive return on investment.
5		Underperforming investment with expected loss of interest and some principal.

The following table shows the distribution of our investments on the 1 to 5 investment rating scale at fair value as of ~~March~~June 3130, 2018 and December 31, 2017:

		March 31, 2018								December 31, 2017
				June 30, 2018								December 31, 2017
Investment Rating		~~Fair Value~~		Fair Value		~~Percentage of Portfolio~~		Percentage of Portfolio		~~Fair Value~~		Fair Value		~~Percentage of Portfolio~~		Percentage of Portfolio
1	1	$	-	$	-		-		-	$	-	$	-		-		-
2	2		~~44,833~~		46,947		80	%	74	%	~~42,018~~		42,018		77	%	77	%
3	3		~~7,584~~		12,338		13	%	19	%	~~8,806~~		8,806		16	%	16	%
4	4		-		-		-		-		-		-		-		-
5	5		~~4,023~~		4,282		7	%	7	%	~~4,023~~		4,023		7	%	7	%
~~Total~~	Total	$	~~56,440~~	$	63,567		~~100~~	%	100	$%	~~54,847~~	$	54,847		~~100~~	%	100	%

The amount of the portfolio in each grading category may vary substantially from period to period resulting primarily from changes in the composition of the portfolio as a result of new investment, repayment and exit activities. In addition, changes in the grade of investments may be made to reflect our expectation of performance and changes in investment values.

Recent Accounting Pronouncements

Refer to “Part I. Financial Information, Item 1. Financial Statements – Note B – Summary of Significant Accounting Policies” of this quarterly report on Form 10-Q for a description of recent accounting pronouncements.

Results of Operations

Three Months Ended ~~March 31~~June 30, 2018 and 2017

Investment Income

For the three months ended ~~March~~June 3130, 2018 and 2017, total investment income totaled $966 and $1845,~~084,~~ respectively, of which $~~583~~477 and $~~693~~664, respectively, was attributable to portfolio interest (excluding PIK interest) earned on our first and second lien senior secured loans, $~~276~~329 and $71, respectively, was attributable to dividend income earned, and $1517 and $18, respectively, was attributable to amortization of loan origination fees received. For the three months ended June 30, 2018 and 2017, $65 and $0, respectively, of our portfolio interest was attributable to default interest on the Medi-fare Drug & Pharmaceutical Compounding LLC first lien senior secured loan.

For the three months ended ~~March~~June 3130, 2018 and 2017, $9278 and $~~302~~92, respectively, of our total investment income constituted PIK interest. As of ~~March~~June 3130, 2018, four of our portfolio ~~investments~~companies paid all or a portion of their interest payments in the form of PIK interest, including our position in Action Resources, which was restructured so that the entire position is payable in PIK interest. Action Resources was placed on non-accrual during the three months ended June 30, 2017 and accordingly, our investment income does not include any PIK interest related to Action Resources for the three months ended ~~March~~June 3130, 2018. The ~~decrease~~increase in investment income was primarily due to the ~~Action~~dividend income ~~Resources~~pertaining ~~investment~~to ~~being~~the onincreased ~~non-accrual,~~preferred ~~partially~~shares ~~offset~~that bywe anown ~~increase~~of inLone ~~the~~Star ~~size~~Brewery ofDevelopment, ~~our overall portfolio~~Inc.

Operating Expenses

Total operating expenses were $~~640~~586 for the three months ended ~~March~~June 3130, 2018, and consisted of base management fees of $~~295~~321 (less a fee waiver of $~~102~~122), professional fees of $~~258~~187 and other general and administrative fees of $~~189~~200. Total operating expenses were $~~626~~542 for the three months ended ~~March~~June 3130, 2017, and consisted of base management fees of $~~238~~248 (less a fee waiver of $6064), professional fees of $~~253~~173 and other general and administrative fees of $~~195~~185. We did not incur any incentive fees for the three months ended ~~March~~ 31June 30, 2018 or 2017. The increase in operating expenses was ~~primarily~~ driven by an increase in ~~management fees resulting from an increased~~ portfolio size during the three months ended ~~March~~June 3130, 2018 as well as our shift to self originated investments, which require additional management and oversight compared to syndicated loans. Our operating expenses were 1.6549% and 1.7546% of our average net assets for the three months ended ~~March~~June 3130, 2018 and 2017, respectively. As we continue to execute our strategy and grow our portfolio, we expect our operating expenses as a percentage of our average net assets to decrease. Professional fees include legal, audit, compliance, valuation, technology and other professional fees incurred related to our management. Other general and administrative expenses include custody, printer fees, research, subscriptions and other costs.

In order to meet the diversification tests required to qualify as a RIC, we acquired the following in face value of short-term U.S. Treasury Bills. The purchases had the effect of increasing management fees payable to the Advisor, all of which were waived by the Advisor:

Date acquired	Amount acquired
Impact in 2018
June 28, 2018	$	26,993
March 29, 2018	$	22,000
December 28, 2017	$	19,500
Impact in 2017
June 29, 2017	$	13,000
March 29, 2017	$	12,500

These transactions had the effect of increasing management fees payable to the Advisor in an amount of $~~102~~122 and $6064 for the three months ended ~~March~~June 3130, 2018 and 2017, respectively, all of which was also waived by the Advisor.

Net Investment Income

Our net investment income totaled $~~326~~ 380 and $~~458~~303, respectively ($0.0810 and $0.1208 per weighted average shares outstanding), for the three months ended ~~March~~June 3130, 2018 and 2017.

Net Realized Gain on Investments

For the three months ended ~~March~~June 3130, 2018 and 2017 we had net realized ~~gain~~gains ~~(loss)~~ of $397 and ($~~10)~~3, respectively, resulting from the sale of investments in our portfolio.

~~Net Unrealized Appreciation (Depreciation) on Investments~~25

Net ~~change~~ inUnrealized ~~unrealized~~Appreciation ~~appreciation (depreciation)~~ on investments reflects the net change in the fair value of our investment portfolio. For the three months ended March 18, 2018 and 2017, we had net unrealized appreciation (depreciation) on our portfolio of $50 and ($261), respectively. Investments

25Net change in unrealized appreciation on investments reflects the net change in the fair value of our investment portfolio. For the three months ended June 30, 2018 and 2017, we had net unrealized appreciation on our portfolio of $846 and $373, respectively.

Changes in Net Assets from Operations

For the three months ended ~~March~~June 3130, 2018 and 2017, we recorded a net increase in net assets resulting from operations of $~~415~~1,233 and $~~187~~679 ($0.1031 and $0.0518 per weighted average shares outstanding), respectively.

~~Hedging~~Six Months Ended June 30, 2018 and 2017

~~We may,~~Investment but are not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks, but we do not generally intend to enter into any such derivative agreements for speculative purposes. Such hedging activities, which would be in compliance with applicable legal and regulatory requirements, may include the use of futures, options and forward contracts. We would bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance any hedging strategy we employ will be successful. Since inception, we have not entered into any hedging transactions.Income

~~Financial~~For the six months ended June 30, 2018 ~~Condition~~and 2017, ~~Liquidity~~total investment income totaled $1,932 and ~~Capital~~$1,929, ~~Resources~~respectively, of which $1,057 and $1,324, respectively, was attributable to portfolio interest (excluding PIK interest) earned on our first and second lien senior secured loans, $605 and $142, respectively, was attributable to dividend income earned and $35 and $69, respectively, was attributable to amortization of loan origination fees received. For the six months ended June 30, 2018 and 2017, $65 and $0, respectively, of our portfolio interest was attributable to default interest on the Medi-fare Drug & Pharmaceutical Compounding LLC first lien senior secured loan.

~~As of~~For ~~March~~the ~~31,~~six ~~2018,~~months weended ~~had~~June ~~cash~~30, 2018 and ~~cash~~2017, ~~equivalents~~$170 ofand ~~approximately~~ $2394,~~925.~~ Werespectively, ~~raise~~of ~~capital~~our ~~through~~total ainvestment ~~private~~income ~~offering~~constituted ofPIK ~~our shares~~interest. inAs ~~order~~of toJune ~~acquire~~30, a2018, ~~portfolio~~four of ~~debt~~our portfolio ~~and~~companies ~~equity~~paid ~~investments~~all ~~consistent~~or ~~with~~a ~~our~~portion ~~investment~~of ~~objective~~their ~~and~~interest ~~strategy.~~payments ~~We generate~~in ~~cash~~the ~~flows~~form ~~from~~of ~~fees,~~PIK interest, ~~and~~including ~~dividends~~our ~~earned~~position ~~from~~in ~~our~~Action Resources, ~~investments~~which aswas ~~well~~restructured asso ~~principal~~that ~~repayments~~the ~~and~~entire ~~proceeds from~~position ~~sales~~is ofpayable ~~our~~in ~~investments~~PIK interest. ~~The~~Action ~~increase~~Resources inwas ~~cash~~placed ofon ~~$820~~ non-accrual during the ~~three~~six months ended ~~March~~June 3130, ~~2018~~2017 ~~was~~and ~~primarily~~accordingly, ~~driven by~~our ~~the~~investment ~~sale~~income ofdoes ~~our~~not ~~investment~~include inany ~~American~~PIK ~~Bath~~interest ~~Group,~~related ~~LLC~~to ~~and~~Action Resources ~~Lionbridge~~for ~~Technologies~~the six months ended June 30, ~~Inc.~~2018 and ~~paydowns~~2017. ofThe ~~investments~~decrease in ~~Ebony Media~~investment ~~Holdings,~~income ~~LLC~~was ~~and~~primarily ~~Medi-fare~~due ~~Drug~~to &the ~~Pharmaceutical~~Action ~~Compounding,~~Resources investment ~~LLC~~being on non-accrual, partially offset by ~~our~~an ~~additional~~increase ~~investments~~ in ~~Lone~~the ~~Star Brewery~~size ~~Development,~~of ~~Inc,~~our ~~and~~overall ~~Langham Creek LLC~~portfolio.

~~Prior to~~Operating deploying the capital we raise in our private offering of shares, we intend to invest in cash equivalents, U.S. government securities, repurchase agreements and high quality debt instruments maturing in one year or less from the time of investment, consistent with our BDC election and our intent to be taxed as a RIC.Expenses

WeTotal operating expenses were $1,226 for ~~may~~the ~~borrow~~six ~~funds~~months toended ~~make~~June ~~investments~~30, to2018, ~~the~~and ~~extent~~consisted weof ~~determine~~base ~~that~~management ~~additional~~fees ~~capital~~of ~~would~~$616 ~~allow~~(less usa tofee ~~take~~waiver ~~advantage~~ of ~~additional~~$224), professional fees ~~investment~~of ~~opportunities~~$445 and other general and administrative fees of $389. Total operating expenses were $1,168 iffor the ~~market~~six ~~for~~months ~~debt~~ended ~~financing~~June ~~presents~~30, 2017, ~~attractively~~and ~~priced~~consisted ~~debt~~of ~~financing~~base ~~opportunities~~management fees of $486 (less a fee waiver of $124), professional fees of $426 and other general and administrative fees of $380. We did not incur any incentive fees for the six months ended June 30, 2018 or if2017. The increase in operating expenses was primarily driven by an increase in management fees resulting from an increased portfolio size during the six months ended June 30, 2018 as well as our shift to self originated investments, which require additional management and oversight ~~board~~compared to syndicated loans. Our operating expenses were 3.11% and 3.14% of ~~directors~~our ~~determines~~average ~~that~~net ~~leveraging~~assets for the six months ended June 30, 2018 and 2017, respectively. As we continue to execute our strategy and grow our portfolio, ~~would~~we beexpect inour operating expenses as a percentage of our ~~best~~average ~~interests~~net assets to decrease. Professional fees include legal, audit, compliance, valuation, technology and other professional fees incurred related to our management. Other general and administrative expenses include custody, printer fees, research, subscriptions and other costs.

~~Critical Accounting Policies~~26

~~Our financial~~In ~~statements~~order ~~are prepared in conformity with GAAP, which requires us~~ to ~~make~~meet ~~estimates and assumptions that affect~~ the ~~reported~~ ~~amounts~~diversification ~~of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses~~tests ~~during~~required ~~the~~to ~~reporting~~qualify ~~periods.~~as ~~Critical~~a ~~accounting policies are those that require the application of management’s most difficult~~RIC, ~~subjective,~~ orwe ~~complex~~acquired ~~judgments, often because of~~ the ~~need~~following ~~to make estimates about the effect of matters that are inherently uncertain and that may change~~ in ~~subsequent~~face ~~periods.~~value ~~In preparing the financial statements, management has made estimates and assumptions that affect the reported amounts~~ of ~~assets~~short-term ~~and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods~~U. In preparing the financial statements, management has utilized available information, including our past history, industry standards and the current economic environment, among other factors, in forming its estimates and judgments, giving due consideration to materialityS. ~~Actual~~Treasury ~~results may differ from these estimates~~Bills. In ~~addition,~~The ~~other~~purchases ~~companies~~had ~~may utilize different estimates, which may impact~~ the ~~comparability of our results of operations~~ toeffect ~~those~~ of ~~companies~~increasing inmanagement ~~similar~~fees ~~businesses.~~payable ~~Refer~~ to ~~“Part~~the ~~I. Financial Information~~Advisor, ~~Item~~all ~~1. Financial Statements – Note B – Summary~~ of ~~Significant~~which ~~Accounting~~were ~~Policies”~~waived ofby ~~this quarterly report on Form 10-Q for a description of~~ the ~~summary of significant accounting policies.~~Advisor:

Contractual Obligations

Date acquired	Amount acquired
Impact in 2018
June 28, 2018	$	26,993
March 29, 2018	$	22,000
December 28, 2017	$	19,500

Impact in 2017
June 29, 2017	$	13,000
March 29, 2017	$	12,500
December 29, 2016	$	12,000

~~We have~~These ~~entered~~transactions ~~into~~had anthe ~~agreement~~effect ~~with~~of ~~our~~increasing management ~~Advisor~~fees payable to ~~provide~~the usAdvisor ~~with~~in ~~investment~~an ~~advisory~~amount ~~services.~~of ~~Refer~~$224 toand ~~“Part~~$124 I.for ~~Financial Information,~~the ~~Item~~six 1.months ~~Financial~~ended ~~Statements~~June –30, ~~Note~~2018 Cand –2017, ~~Related Party Transactions – Advisory Agreement”~~respectively, ~~for~~all ~~a discussion~~ of ~~the~~which ~~fees~~were ~~payable~~also ~~pursuant~~waived toby the ~~Advisory Agreement~~Advisor.

~~Off-Balance Sheet~~Net ~~Arrangements~~Investment Income

~~We currently~~Our ~~have~~net noinvestment ~~off-balance~~income ~~sheet~~totaled ~~arrangements~~$706 and $761, ~~including~~respectively ~~risk~~($0.18 ~~management~~and of$0.20 ~~commodity~~per ~~pricing~~weighted oraverage ~~other~~shares ~~hedging~~outstanding), ~~practices~~for the six months ended June 30, 2018 and 2017.

26Net Realized Gain (Loss) on Investments

~~Item~~For the six months ended June 30, 2018 3.and ~~Quantitative~~2017 we had net realized gain (loss) of $46 and ~~Qualitative~~($7), ~~Disclosures~~respectively, ~~About~~resulting ~~Market~~from ~~Risk~~the sale of investments in our portfolio.

~~We are~~Net ~~subject~~Unrealized toAppreciation ~~financial market risks, including changes in interest rates. As of March 31, 2018, our portfolio primarily consisted~~(Depreciation) of investments paying fixed rates of interest. In addition, in the future we may seek to borrow funds in order to make additional investments. If we borrow funds to make additional investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we would be subject to risks relating to changes in market interest rates. In periods of rising interest rates when we have debt outstanding, our cost of funds would increase, which could reduce our net investment income, especially to the extent we continue to hold fixed rate investments. If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a materially adverse effect on ~~our business, financial condition and results of operations.~~Investments

~~A rise~~Net change in ~~the~~unrealized ~~general~~appreciation ~~level of interest rates can be expected to lead to higher interest rates applicable to a portion of our debt~~(depreciation) on investments, ~~especially~~reflects to the ~~extent~~net ~~that~~change wein ~~hold~~the ~~variable~~fair ~~rate~~value ~~investments. However, as~~ of ~~March 31, 2018, approximately 3.42% of~~ our ~~portfolio~~investment ~~paid variable rates of interest~~portfolio. AnFor ~~increase~~the insix ~~interest~~months ~~rates~~ended ~~for~~June ~~these variable rate investments could make it easier for us to meet or exceed our incentive fee return~~30, as2018 ~~defined in our Advisory Agreement,~~ and ~~may result in a substantial~~ ~~increase~~2017, inwe ~~our~~had net ~~investment~~unrealized ~~income,~~appreciation ~~and~~on ~~also to the amount of incentive fees payable to~~ our ~~Advisor~~portfolio ~~with respect to our increasing pre-incentive fee net investment income. As~~ of ~~March~~$896 ~~31,~~and ~~2018~~$112, ~~an increase of 50 basis points in the market interest rates would have resulted in the decrease in the value of our fixed rate investments~~respectively.

~~Item 4.~~Changes ~~Controls~~in ~~and~~Net ~~Procedures.~~Assets from Operations

~~An evaluation~~For of the ~~effectiveness~~six ofmonths ~~our~~ended ~~disclosure~~June ~~controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) was carried out by us under the supervision and with the participation of our chief executive officer~~30, ~~who serves~~2018 ~~as our principal executive officer,~~ and ~~our chief financial officer~~2017, ~~who~~we ~~serves~~recorded asa ~~our~~net ~~principal~~increase ~~financial~~in ~~officer.~~net ~~Based~~assets ~~upon that~~resulting ~~evaluation,~~from ~~our~~operations ~~chief executive officer and chief financial officer concluded that, as~~ of ~~March 31~~$1,648 ~~2018, our disclosure controls~~ and ~~procedures~~$866 ~~were effective to ensure~~ (i)$0.41 ~~that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized~~ and ~~reported~~$0.23 ~~within~~per ~~the~~weighted ~~time periods specified in the SEC’s rules~~average ~~and~~shares ~~forms, and (ii~~outstanding) ~~that such information is accumulated and communicated to management~~, ~~including our chief executive officer and chief financial officer, in order to allow timely decisions regarding required disclosure~~respectively.

Our management, including our chief executive officer and chief financial officer, conducted an evaluation of the effectiveness of our internal control over financial reporting. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control - Integrated Framework (2013). There were no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) or 15d-15(f)) that occurred during the quarter ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.Hedging

27We may, but are not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks, but we do not generally intend to enter into any such derivative agreements for speculative purposes. Such hedging activities, which would be in compliance with applicable legal and regulatory requirements, may include the use of futures, options and forward contracts. We would bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance any hedging strategy we employ will be successful. Since inception, we have not entered into any hedging transactions.

~~PART II. OTHER INFORMATION~~27

~~Item 1.~~Financial ~~Legal~~Condition, ~~Proceedings.~~Liquidity and Capital Resources

~~Although~~ As of June 30, 2018, we ~~may~~had cash and cash equivalents of approximately $1,163. ~~from~~We ~~time~~raise capital through a private offering of our shares in order to ~~time~~acquire a portfolio of debt and equity investments consistent with our investment objective and strategy. We generate cash flows from fees, beinterest and ~~involved~~dividends inearned ~~litigation~~from ~~arising~~our ~~out~~investments as well as principal repayments and proceeds from sales of our ~~operations~~investments. We anticipate additional principal repayments from some of our investments in the ~~normal~~near ~~course~~term. The decrease in cash of ~~business~~$942 orduring ~~otherwise~~the six months ended June 30, 2018 was primarily driven by our additional investments in Lone Star Brewery Development, Inc, Ebony Media Holdings, ~~neither~~LLC weand ~~nor~~Langham Creek LLC, offset by the ~~Advisor~~sale isof ~~currently~~our ainvestments ~~party~~in toAmerican ~~any~~Bath ~~pending~~Group, ~~material~~LLC ~~legal~~and ~~proceedings~~Lionbridge Technologies, Inc. ~~nor~~and paydowns of investments in Medi-fare Drug & Pharmaceutical Compounding, LLC. Prior to deploying the capital we raise in our ~~knowledge~~private offering of shares, iswe ~~any~~intend ~~material~~to invest in cash equivalents, U.S. government securities, repurchase agreements and ~~legal~~high ~~proceeding~~quality ~~threatened~~debt ~~against~~instruments usmaturing in one year or ~~against~~less from the ~~Advisor~~time of investment, consistent with our BDC election and our intent to be taxed as a RIC.

~~Item~~We may borrow funds to make investments, ~~1A.~~to ~~Risk~~the ~~Factors~~extent we determine that additional capital would allow us to take advantage of additional investment opportunities, if the market for debt financing presents attractively priced debt financing opportunities, or if our board of directors determines that leveraging our portfolio would be in our best interests.

~~There have~~Critical ~~been~~Accounting ~~no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on April 2, 2018.~~ Policies

~~Item~~Our financial statements are prepared in 2conformity with GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. ~~Unregistered~~Critical accounting ~~Sales~~policies are those that require the application of ~~Equity~~management’s ~~Securities~~most difficult, subjective, or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and ~~Use~~that may change in subsequent periods. In preparing the financial statements, management has made estimates and assumptions that affect the reported amounts of ~~Proceeds~~assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. In preparing the financial statements, management has utilized available information, including our past history, industry standards and the current economic environment, among other factors, in forming its estimates and judgments, giving due consideration to materiality. Actual results may differ from these estimates. In addition, other companies may utilize different estimates, which may impact the comparability of our results of operations to those of companies in similar businesses. Refer to “Part I. Financial Information, Item 1. Financial Statements – Note B – Summary of Significant Accounting Policies” of this quarterly report on Form 10-Q for a description of the summary of significant accounting policies.

~~None.~~Contractual Obligations

~~Item~~We have entered into an agreement with 3our Advisor to provide us with investment advisory services. ~~Defaults~~Refer ~~Upon~~to ~~Senior~~“Part ~~Securities~~I. Financial Information, Item 1. Financial Statements – Note C – Related Party Transactions – Advisory Agreement” for a discussion of the fees payable pursuant to the Advisory Agreement.

~~None.~~Off-Balance Sheet Arrangements

~~Item~~We currently have no off-balance sheet 4.arrangements, ~~Mine~~including ~~Safety~~risk ~~Disclosures.~~management of commodity pricing or other hedging practices.

~~None.~~28

Item 5 3. ~~Other~~Quantitative ~~Information~~and Qualitative Disclosures About Market Risk.

~~None~~We are subject to financial market risks, including changes in interest rates. As of June 30, 2018, our portfolio primarily consisted of investments paying fixed rates of interest. In addition, in the future we may seek to borrow funds in order to make additional investments. If we borrow funds to make additional investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we would be subject to risks relating to changes in market interest rates. In periods of rising interest rates when we have debt outstanding, our cost of funds would increase, which could reduce our net investment income, especially to the extent we continue to hold fixed rate investments. If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a materially adverse effect on our business, financial condition and results of operations.

~~Item~~A rise in the general level of interest 6rates can be expected to lead to higher interest rates applicable to a portion of our debt investments, especially to the extent that we hold variable rate investments. ~~Exhibits~~However, as of June 30, 2018, 3.38% of our portfolio, excluding our US Government Securities, paid variable rates of interest. An increase in interest rates for any variable rate investments that we hold could make it easier for us to meet or exceed our incentive fee return, as defined in our Advisory Agreement, and may result in a substantial increase in our net investment income, and also to the amount of incentive fees payable to our Advisor with respect to our increasing pre-incentive fee net investment income.

~~(a) Exhibits~~Item 4. Controls and Procedures.

31.1*	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

An evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) was carried out by us under the supervision and with the participation of our chief executive officer, who serves as our principal executive officer, and our chief financial officer, who serves as our principal financial officer. Based upon that evaluation, our chief executive officer and chief financial officer concluded that, as of June 30, 2018, our disclosure controls and procedures were effective to ensure (i) that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, in order to allow timely decisions regarding required disclosure.

*Our management, including our chief executive ~~Filed~~officer ~~herewith~~and chief financial officer, conducted an evaluation of the effectiveness of our internal control over financial reporting. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control - Integrated Framework (2013). There were no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) or 15d-15(f)) that occurred during the quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

2829

~~SIGNATURES~~PART II. OTHER INFORMATION

~~Pursuant to~~Item ~~the~~1. ~~requirements~~Legal ~~of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized~~Proceedings.

	PARKVIEW CAPITAL CREDIT, INC.
Date: May 14, 2018	/s/ KEITH W. SMITH
	Keith W. Smith
	Chief Executive Officer (Principal Executive Officer)
Date: May 14, 2018	/s/ CHARLES M. JACOBSON
	Charles M. Jacobson
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

Although we may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise, neither we nor the Advisor is currently a party to any pending material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us or against the Advisor.

29Item 1A. Risk Factors.

There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on April 2, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

None.

Item 6. Exhibits.

(a) Exhibits

31.1*	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002

31.2*	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002

32.1*	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PARKVIEW CAPITAL CREDIT, INC.

Date: August 13, 2018	/s/ KEITH W. SMITH
	Keith W. Smith
	Chief Executive Officer (Principal Executive Officer)

Date: August 13, 2018	/s/ CHARLES M. JACOBSON
	Charles M. Jacobson
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

Filing Compare · Parkview Capital Credit, Inc.