Financial Data and Key Metrics Changes - Gross investment income for Q1 2025 was $11.9 million, down from $12.7 million in Q4 2024 [12] - Net investment income was $7.6 million or $0.34 per share, compared to $8 million or $0.35 per share in the previous quarter [13] - Net assets at the end of the quarter were $301 million, with NAV per share at $13.19 [13] Business Line Data and Key Metrics Changes - The company has 31 portfolio companies, with 21% of the portfolio invested outside of cannabis [14] - The average debt position size is 3% of the debt portfolio, with 76% of the portfolio being floating rate [14] - The gross weighted average yield on company debt investments is approximately 16.6% [14] Market Data and Key Metrics Changes - The company originated $52.8 million in gross fundings since October 1, 2024, with $32.3 million committed and $20.8 million funded in Q1 2025 [8][16] - The pipeline includes approximately $590 million in potential debt transactions across 35 unique companies, with $462 million in cannabis opportunities and $128 million in non-cannabis investments [18] Company Strategy and Development Direction - The company focuses on lending to cannabis companies and other underserved markets, aiming to deploy capital with differentiated risk-reward profiles [6][11] - The strategy includes maintaining a disciplined underwriting approach and being selective with borrowers to build durable investment portfolios [20] - The company plans to grow its dividend component as it scales its platform, with a current dividend of $0.34 per share [10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the potential for federal regulatory changes, although the timing is unpredictable [10] - The company believes it is well-positioned for 2025, focusing on proven operators and strong markets [11] - Management emphasizes a long-term view of partnership building with operators, regardless of broader market conditions [24][26] Other Important Information - The company has no non-accruals compared to an industry average of 3.9% [8] - The company closed on a new $100 million credit facility during the quarter, providing ample liquidity for new investments [15] Q&A Session Summary Question: General macro outlook and deployment of $100 million in loans - Management views the U.S. cannabis industry as a collection of individual state markets, allowing for a more focused investment strategy [24][26] Question: Pipeline activity in cannabis vs. non-cannabis sectors - No significant difference in deployment ratios is expected; fluctuations are considered ordinary [28] Question: Flexibility to increase the credit facility - Management believes there is room to grow the senior secured credit facility and add modest unsecured notes in a disciplined manner [29] Question: Debt leverage threshold - The company expects to maintain leverage well below industry averages for the foreseeable future [30] Question: Dividend growth expectations - Management does not provide specific dividend guidance but emphasizes that nearly all income will be distributed by year-end [32]

Financial Data and Key Metrics Changes - Gross investment income for Q1 2025 was $11.9 million, a decrease from $12.7 million in Q4 2024 [11] - Net investment income was $7.6 million or $0.34 per share, compared to $8.0 million or $0.35 per share in the previous quarter [12] - Net expenses were $4.3 million, slightly down from $4.4 million in the last quarter [12] - Net assets at quarter end were $301 million, with NAV per share at $13.19 [12] Business Line Data and Key Metrics Changes - The company has 31 portfolio companies, with 21% of the portfolio invested outside of cannabis [12] - The average debt position size is 3% of the debt portfolio, with 76% of the portfolio being floating rate [13] - The gross weighted average yield on company debt investments is approximately 16.6% [13] Market Data and Key Metrics Changes - The company has originated $52.8 million in gross fundings since October 1, 2024, with $32.3 million committed and $20.8 million funded in Q1 2025 [7] - The pipeline includes approximately $590 million in potential debt transactions across 35 unique companies, with $462 million in cannabis opportunities and $128 million in non-cannabis investments [16] Company Strategy and Development Direction - The company focuses on lending to cannabis companies and other underserved markets, aiming to deploy capital with differentiated risk-reward profiles [5] - The strategy includes maintaining a disciplined underwriting approach and being selective with borrowers to build durable investment portfolios [19] - The company aims to grow its dividend component as it scales its platform, having declared a total of $1.27 in dividends over the last four quarters [8] Management's Comments on Operating Environment and Future Outlook - Management believes the outlook for common sense reforms in the cannabis industry is positive, but the timing remains unpredictable [10] - The company is positioned well for 2025, focusing on proven operators and strong markets to support growth initiatives [10] - Management emphasizes a long-term view of partnership building with operators, regardless of broader market conditions [23] Other Important Information - The company has no non-accruals compared to an industry average of 3.9% [7] - A new $100 million credit facility was closed during the quarter, providing ample liquidity for future investments [14] Q&A Session Summary Question: General macro outlook and deployment readiness - The company maintains a focus on individual state markets rather than the broader U.S. cannabis industry, allowing for disciplined deployment of capital [23][25] Question: Pipeline activity comparison to previous quarters - There is no significant difference in the ratio of cannabis to non-cannabis investments, with fluctuations being ordinary [26] Question: Flexibility to increase the credit facility - The company sees room to grow its senior secured credit facility and add modest unsecured notes in a disciplined manner [27] Question: Debt leverage threshold - The company expects to remain well below industry averages for debt leverage in the foreseeable future [28] Question: Dividend growth expectations - The company does not provide specific dividend guidance but will distribute nearly all of its income by the end of the year [30]

Chicago Atlantic BDC, Inc. (LIEN) came out with a quarterly loss of $0.34 per share versus the Zacks Consensus Estimate of $0.34. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -200%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.35, delivering a surprise of 20.69%.Over the last four quarters, the company has surp ...

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q1 2025 on May 14, 2025, before market open[5] - The earnings conference call and live audio webcast will take place at 9:00 a.m. Eastern Time on May 14, 2025[5] - The press release regarding the financial results is included as Exhibit 99.1 to the Current Report[5]

Financial Performance - For the first quarter ended March 31, 2025, total investment income was approximately $11.9 million, with net investment income of approximately $7.6 million, or $0.34 per weighted average share [6][19]. - The net asset value (NAV) per share was $13.19 as of March 31, 2025, slightly down from $13.20 as of December 31, 2024, primarily due to dividend payments [7][9]. - Total net assets as of March 31, 2025, were $301.0 million, compared to $301.2 million as of December 31, 2024 [9]. Investment Activity - The company committed $32.3 million for four new credit facilities, with $20.8 million in aggregate par value advanced in the first quarter of 2025 [8]. - The investment portfolio had an aggregate fair value of approximately $289.3 million across 31 portfolio companies as of March 31, 2025 [8]. - The company funded $7.2 million in investments across four borrowers subsequent to the quarter end [7]. Credit Facility - On February 11, 2025, the company closed a new $100 million senior secured revolving credit facility, maturing in March 2028, with an interest rate of SOFR plus 3.00% and a floor of 6.00% [4]. Dividends - The company declared a cash dividend of $0.34 per share for the quarter ended March 31, 2025, payable on April 11, 2025, to shareholders of record as of March 28, 2025 [10]. - A similar dividend of $0.34 per share for the quarter ended June 30, 2025, is scheduled for payment on July 11, 2025 [10]. Management Commentary - The CEO noted a measured deployment strategy, with gross fundings by principal value reaching $52.8 million since October 1, 2024, and emphasized the focus on senior-secured lending in the lower-middle and middle markets [3].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-40564 CHICAGO ATLANTIC BDC, INC. (Exact name of registrant as specified in its charter) | Maryland 86-2872887 | | | | --- | --- | --- | | (State or other jurisdi ...

Company Overview - Chicago Atlantic BDC, Inc. (LIEN) is anticipated to report a year-over-year increase in earnings due to higher revenues for the quarter ended March 2025 [1] - The consensus EPS estimate for the upcoming report is $0.31 per share, reflecting a significant year-over-year change of +3200% [3] - Expected revenues are projected to be $12.46 million, which is an increase of 351.5% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 12.5% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The company has an Earnings ESP of +9.68%, suggesting a likelihood of beating the consensus EPS estimate [11] - Historical performance shows that Chicago Atlantic BDC has beaten consensus EPS estimates only once in the last four quarters [13] Industry Context - In comparison, Gladstone Investment (GAIN), another player in the Zacks Financial - SBIC & Commercial Industry, is expected to post earnings of $0.23 per share, indicating a year-over-year decline of -4.2% [17] - Gladstone Investment's revenue is expected to be $24.78 million, reflecting a modest increase of 4.8% from the previous year [17] - The consensus EPS estimate for Gladstone has been revised 1.4% lower, resulting in a negative Earnings ESP of -1.43%, making it challenging to predict an earnings beat [18]

Core Viewpoint - Chicago Atlantic BDC, Inc. is set to release its financial results for the first quarter of 2025 on May 14, 2025, before market opening, followed by a conference call at 9:00 a.m. Eastern Time [1][2]. Company Overview - Chicago Atlantic BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940, focusing on maximizing risk-adjusted returns for stockholders through direct loans to privately held middle-market companies, particularly in the cannabis sector [4]. Financial Results Release Details - The financial results will be available before the market opens on May 14, 2025, with a conference call scheduled for the same day at 9:00 a.m. ET, accessible to the public [2][6]. - A replay of the conference call will be available on the company's website by the end of the day on May 14, 2025 [3].

Financial Data and Key Metrics Changes - Gross investment income for the fourth quarter was $12.7 million, compared to $3.7 million in the same quarter last year, indicating a significant increase [4]. Business Line Data and Key Metrics Changes - The company funded seven investments in the fourth quarter with a par value of approximately $24.8 million, which included five investments to existing borrowers for about $18.9 million and two investments to new borrowers totaling approximately $5.9 million [5]. Market Data and Key Metrics Changes - The current pipeline across the Chicago Atlantic platform remains robust with approximately $644 million in potential debt transactions across 39 unique companies [5]. Company Strategy and Development Direction - The company aims to create a scaled, diversified portfolio of senior secured investments, focusing on generating attractive yields and leveraging expertise in cannabis and underserved lending markets [3]. Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of providing flexible capital solutions to borrowers, highlighting the strategic partnership aspect of the BDC model [9]. - The CEO noted the difficulty in forecasting deployment pacing due to the nature of credit facilities but expressed confidence in the ongoing focus on deploying existing resources [10][11]. Other Important Information - Subsequent to the quarter end, the company committed approximately $32.3 million in new debt investments and funded about $20.8 million of that [5]. Q&A Session Summary Question: Advantages of BDC for Borrowers - The CEO explained that borrowers prefer availability of capital and a strategic partner who understands their business rather than focusing on lender restrictions [9]. Question: Sustainability of New Debt Fundings - The CEO indicated that while it is difficult to forecast exact deployment pacing, a commitment of around $30 million in new debt funding per quarter is not unreasonable [10][13]. Question: Interest Rate Exposure - The CFO was asked about interest rate exposure, but the response was not included in the provided content [16].

Fourth Quarter and Full Year 2024 Earnings Presentation March 31, 2025 Disclaimers and Forward-Looking Statements The information contained in this presentation should be viewed in conjunction with the earnings conference call of Chicago Atlantic BDC, Inc. (the "Company") (Nasdaq: LIEN) held on March 31, 2025, and the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any o ...