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]

Core Insights - Chicago Atlantic BDC, Inc. reported a quarterly loss of $0.34 per share, matching the Zacks Consensus Estimate, but a significant decline from a loss of $0.01 per share a year ago, indicating a 3,300% increase in losses [1] - The company posted revenues of $11.92 million for the quarter, missing the Zacks Consensus Estimate by 4.31%, but showing a substantial increase from $2.76 million in the same quarter last year [2] - The stock has underperformed, losing about 19% since the beginning of the year, while the S&P 500 has gained 0.1% [3] Financial Performance - Over the last four quarters, Chicago Atlantic BDC has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is $0.32, with expected revenues of $12.09 million, and for the current fiscal year, the EPS estimate is $1.44 on revenues of $55.71 million [7] Industry Context - The Financial - SBIC & Commercial Industry, to which Chicago Atlantic BDC belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Chicago Atlantic BDC's stock performance [5]

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].

Financial Performance - For the three months ended March 31, 2025, total investment income was $11,923,002, a significant increase from $2,760,247 for the same period in 2024, representing a growth of approximately 332%[13] - Net investment income for the three months ended March 31, 2025, was $7,648,421, compared to a net loss of $79,809 for the same period in 2024, indicating a turnaround in performance[13] - Total expenses for the three months ended March 31, 2025, were $5,249,058, up from $2,840,056 in the same period of 2024, reflecting an increase of approximately 84%[13] - The net increase in net assets resulting from operations for the three months ended March 31, 2025, was $7,614,357, compared to $519,811 for the same period in 2024, showing a substantial improvement[13] - The net investment income per share for the three months ended March 31, 2025, was $0.34, compared to a loss of $0.01 per share for the same period in 2024[13] - The weighted average shares outstanding for the three months ended March 31, 2025, were 22,820,386, a significant increase from 6,214,941 shares for the same period in 2024[13] Asset Management - The balance of net assets as of March 31, 2025, was $301,018,004, compared to $84,518,767 as of March 31, 2024, indicating a substantial growth in net assets[17] - The company reported a net change in unrealized depreciation on investments of $(34,064) for the three months ended March 31, 2025, compared to an appreciation of $599,620 for the same period in 2024[13] - Cash and cash equivalents at the end of the period were $14,921,739, down from $33,160,294 at the end of March 31, 2024, reflecting a decrease of approximately 55.1%[20] - The company had a receivable for investment sold amounting to $4,122,500, which was not present in the prior year[20] - The increase in operating liabilities included a rise in management fee payable to $580,888 from $(10,990) in the previous year[20] Investment Strategy - The company focuses on investing in the cannabis industry and other complex, regulated industries, aiming to maximize risk-adjusted returns on equity[47] - The Company’s investment strategy includes secured and unsecured debt, equity warrants, and direct equity investments, typically with terms of three to six years[48] - The company has entered into a Loan Portfolio Acquisition, which may impact future performance and investment strategies[8] - The company anticipates potential risks related to changes in regulation impacting the cannabis industry, which could affect business prospects[8] Sector Investments - Total Cannabis investments amount to $210,854 million, with a fair value of $211,431 million, representing 70.2% of net assets[23] - Dreamfields Brands, Inc. (d/b/a Jeeter) has a delayed draw term loan with a principal of $31,745 million and a fair value of $31,675 million, accounting for 10.6% of net assets[23] - Verano Holdings Corp. has a term loan with a principal of $51,584 million and a fair value of $51,577 million, representing 17.2% of net assets[23] - Total U.S. Corporate Debt stands at $287,660 million, with a fair value of $288,576 million, indicating 95.9% of total debt investments[23] Financial Obligations - The company incurred offering costs of $989,645 during the current period, compared to $756 in the previous year[20] - The net cash used in financing activities was $(1,746,345), compared to $(1,554,420) in the same period last year, indicating an increase in cash outflow[20] - The company recorded $0 of offering costs charged to capital for the three months ended March 31, 2025, following $1,214,375 charged for the year ended December 31, 2024[85] Risk Management - The company expects to continue monitoring the impact of interest and inflation rates on its business prospects and those of its portfolio companies, as indicated in the risk factors section[8] - The company may face challenges in obtaining financing due to the regulatory environment surrounding cannabis investments, which could adversely affect its financial condition[22] - The company manages various risks, including market risk and concentration risk, particularly due to its focus on cannabis investments[102] Shareholder Returns - The Company declared a quarterly dividend of $0.34 per share on March 14, 2025, resulting in total dividends paid of $7,758,931, compared to $0.25 per share and $1,553,736 paid in the same period of 2024[155] - Total distributions for the tax year ended March 31, 2025, were $18,625,335, up from $9,819,273 for the tax year ended March 31, 2024, reflecting a 89.5% increase[173] Compliance and Reporting - The Company transitioned to a regulated investment company (RIC) for U.S. federal income tax purposes, effective from the tax period January 1, 2022, through March 31, 2022[45] - The Company’s financial statements are prepared in accordance with U.S. GAAP, reflecting necessary adjustments for fair presentation[53] - The fair value of investments is determined using a combination of market approach and contingent claim analyses, with valuations categorized into Level 1, Level 2, and Level 3 based on the observability of inputs[68]

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 ...