Investment Income - Total investment income for Q3 2025 was approximately $15.1 million, with interest income accounting for $13.8 million[6]. - Net investment income for the quarter was $9.5 million, or $0.42 per weighted average share outstanding[6]. Investment Portfolio - The total investment portfolio had a fair value of approximately $311.4 million across 37 portfolio companies as of September 30, 2025[7]. - The Company funded eleven portfolio companies with an aggregate par value of $66.3 million during the quarter, including seven new borrowers[7]. - As of September 30, 2025, there were no loans on non-accrual status, indicating strong credit quality[7]. Net Asset Value - The Company's net asset value (NAV) per share increased to $13.27 from $13.23 as of June 30, 2025, driven by growth in net assets[10]. Dividends - The Company declared a cash dividend of $0.34 per share for the quarter ending December 31, 2025, payable on January 15, 2026[11]. Liquidity - As of September 30, 2025, the Company had $99.5 million of liquidity, including $10.5 million in cash and cash equivalents[9]. Loan Activity - The Company had principal amortization and repayments of $62.7 million during the quarter[7]. - The Company achieved gross originations of $66.7 million during the quarter, setting a new record[4].

Financial Performance - Total assets increased to $327.25 million as of September 30, 2025, compared to $309.56 million at December 31, 2024, representing a growth of approximately 5.5%[12] - Investment income for the three months ended September 30, 2025, was $15.07 million, a significant increase from $3.18 million for the same period in 2024, marking a growth of approximately 373%[15] - Net investment income for the three months ended September 30, 2025, was $9.49 million, compared to $14,512 for the same period in 2024, indicating a substantial increase in profitability[15] - The net asset value per share increased to $13.27 as of September 30, 2025, up from $13.20 at December 31, 2024[13] - The company reported a net increase in net assets resulting from operations of $8.83 million for the three months ended September 30, 2025, compared to a decrease of $165,012 for the same period in 2024[15] - For the nine months ended September 30, 2025, the net increase in net assets resulting from operations was $25,032,683, compared to $1,647,660 for the same period in 2024, indicating significant growth[22] - The company reported a net investment income of $24,804,149 for the nine months ended September 30, 2025, compared to $1,460,336 for the same period in 2024[22] - The ratio of net investment income to average net assets was 8.23% for the nine months ended September 30, 2025, compared to 1.72% for the same period in 2024[165] Liabilities and Expenses - Total liabilities rose to $24.33 million as of September 30, 2025, compared to $8.40 million at December 31, 2024, reflecting an increase of approximately 189%[12] - The company incurred total expenses of $5.81 million for the three months ended September 30, 2025, compared to $3.16 million for the same period in 2024, representing an increase of approximately 83%[15] - The company incurred $0 in transaction expenses related to the Loan Portfolio Acquisition for the three and nine months ended September 30, 2025, compared to $2,429,993 and $5,069,062 for the same periods in 2024[85] - Management fee expenses for the three months ended September 30, 2025, were $1,399,845, compared to $253,421 for the same period in 2024, representing a significant increase[127] - Income-based incentive fee expenses for the three months ended September 30, 2025, were $2,347,473, compared to $0 for the same period in 2024[128] Cash and Cash Equivalents - Cash and cash equivalents decreased to $10.46 million as of September 30, 2025, from $23.93 million at December 31, 2024, a decline of approximately 56%[12] - Cash and cash equivalents at the end of the period on September 30, 2025, were $10,462,366, down from $30,111,563 at the end of September 30, 2024[22] - The company has a cash and cash equivalents balance of $10,462,366 as of September 30, 2025, down from $23,932,406 as of December 31, 2024[12] Investment Strategy and Portfolio - The company anticipates continued growth in investment income and is focused on expanding its portfolio in the cannabis industry, despite potential regulatory changes[10] - Total cannabis investments reached $222.052 million, representing 73.4% of the portfolio[24] - The company focuses on investing in the cannabis industry, with a strategy to maximize risk-adjusted returns on equity[41] - The company’s investment objective includes generating current income from debt investments and capital appreciation from equity investments[42] - The company’s portfolio includes a mix of secured debt, unsecured debt, equity warrants, and direct equity investments[42] Debt and Financing - The company has a revolving line of credit of $11 million as of September 30, 2025, which was not present at December 31, 2024[12] - The average interest rate on borrowings under the Credit Agreement was 7.33% for the three and nine months ended September 30, 2025[124] - The Company had $0 in deferred financing costs payable as of September 30, 2025, down from $47,881 as of December 31, 2024[86] - The Company recorded $125,465 and $318,243 in commitment fees for the three and nine months ended September 30, 2025, respectively, under the Revolving Line of Credit[119] - The Company had $11,000,000 in outstanding borrowings and $89,000,000 available under the Revolving Line of Credit as of September 30, 2025[121] Regulatory and Compliance - The Company intends to maintain its election as a RIC and must distribute at least 90% of its investment company taxable income to avoid federal excise taxes[74] - The Company has adopted a tax year end of March 31 and intends to maintain its status as a regulated investment company[39] - The Company is externally managed by Chicago Atlantic BDC Advisers, LLC, which has engaged SS&C Technologies, Inc. for administrative services[40] - The Company has no uncertain tax positions as of September 30, 2025, indicating a stable tax compliance status[78] Market Risks - The company faces concentration risk due to its focus on cannabis investments, which may lead to greater price volatility and risk of loss[101] - Credit risk is a concern, particularly for below investment grade securities, which are more susceptible to economic downturns and may result in significant losses[103] - Interest rate risk could impact net investment income, especially if borrowing costs increase in a rising interest rate environment[105] - The company manages market risk through various strategies, including diversification across instruments and counterparties[100] Shareholder Distributions - Total distributions paid to stockholders for the nine months ended September 30, 2025, amounted to $15,515,682, significantly higher than $4,660,638 for the same period in 2024[22] - A cash dividend of $0.34 per share was approved by the Board on November 11, 2025, payable on January 15, 2026[168] - The Company declared dividends totaling $7,758,931 for the quarterly distribution on March 14, 2025, with a per share amount of $0.34[150] Changes in Company Structure - The Company has undergone a name change to "Chicago Atlantic BDC, Inc." and its ticker symbol has changed to "LIEN" effective October 2, 2024[45] - The Company completed a Loan Portfolio Acquisition on October 1, 2024, issuing 16,605,372 shares of common stock valued at $219,621,125[149]

PART I: FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited financial statements for June 30, 2025, reflect substantial asset and income growth, primarily from the October 2024 Loan Portfolio Acquisition, maintaining a focus on U.S. cannabis industry loans [Statements of Assets and Liabilities](index=5&type=section&id=Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets reached **$331.8 million**, with net assets at **$301.8 million**, reflecting a slight increase from year-end 2024 and a NAV per share of **$13.23** Key Balance Sheet Data (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Investments at fair value | $307,499 | $275,241 | | Cash and cash equivalents | $13,829 | $23,932 | | **Total Assets** | **$331,750** | **$309,561** | | **Liabilities** | | | | Revolving line of credit | $5,000 | $0 | | **Total Liabilities** | **$29,907** | **$8,398** | | **Net Assets** | **$301,844** | **$301,163** | | **NAV per Share** | **$13.23** | **$13.20** | [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) For the six months ended June 30, 2025, total investment income surged to **$25.0 million**, driving net investment income to **$15.3 million** and a net increase in net assets from operations of **$16.2 million** Statements of Operations Highlights (Six Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $25,003 | $5,842 | | Net Expenses | $9,690 | $4,396 | | **Net Investment Income** | **$15,313** | **$1,446** | | Net Realized/Unrealized Gains | $886 | $367 | | **Net Increase in Net Assets** | **$16,199** | **$1,813** | | NII Per Share | $0.67 | $0.23 | | Net Increase in Net Assets Per Share | $0.71 | $0.29 | [Statements of Changes in Net Assets](index=7&type=section&id=Statements%20of%20Changes%20in%20Net%20Assets) For the six months ended June 30, 2025, net assets increased by **$0.7 million** to **$301.8 million**, primarily due to a **$16.2 million** net increase from operations, largely offset by **$15.5 million** in stockholder distributions - The primary drivers for the change in net assets during the first six months of 2025 were net income from operations of **$16.2 million**, offset by distributions to stockholders of **$15.5 million**[20](index=20&type=chunk) [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was **$5.3 million**, and in financing activities was **$4.8 million**, leading to a **$10.1 million** decrease in cash and cash equivalents Cash Flow Summary (Six Months Ended June 30, 2025) | Activity | Net Cash Flow (in millions) | | :--- | :--- | | Operating Activities | $(5.3) | | Financing Activities | $(4.8) | | **Net Decrease in Cash** | **$(10.1)** | | Cash at Beginning of Period | $23.9 | | **Cash at End of Period** | **$13.8** | [Schedule of Investments](index=10&type=section&id=Schedule%20of%20Investments) As of June 30, 2025, the investment portfolio's fair value reached **$307.5 million**, predominantly in first-lien senior secured U.S. debt, with a **76.1%** concentration in the U.S. Cannabis sector Total Investments (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amortized Cost | $305,719 | $274,347 | | Fair Value | $307,499 | $275,241 | | % of Net Assets | 101.9% | 91.4% | - The portfolio is heavily concentrated in the U.S. Cannabis industry, which represents **76.1% of net assets** as of June 30, 2025[24](index=24&type=chunk) [Notes to Financial Statements](index=18&type=section&id=Notes%20to%20Financial%20Statements) The notes detail organization, accounting policies, and key events, including the October 2024 Loan Portfolio Acquisition and the new **$100 million** revolving credit facility, with all investments classified as Level 3 - On October 1, 2024, the company acquired a loan portfolio from Chicago Atlantic Loan Portfolio, LLC (CALP) in exchange for **16.6 million shares** of common stock, valued at **$219.6 million**. In connection with this, the company was renamed Chicago Atlantic BDC, Inc. and its ticker changed to 'LIEN'[43](index=43&type=chunk)[45](index=45&type=chunk) - As of June 30, 2025, there were no investments on non-accrual status[75](index=75&type=chunk) - On February 11, 2025, the company entered into a **$100 million** senior secured revolving credit facility maturing in March 2028. As of June 30, 2025, **$5 million** was outstanding[117](index=117&type=chunk)[119](index=119&type=chunk)[122](index=122&type=chunk) - Subsequent to the quarter end, on July 31, 2025, the company received a full principal repayment of approximately **$38.7 million** from its loan to STIIIZY Inc. Additionally, on August 12, 2025, the Board approved a quarterly cash dividend of **$0.34 per share**[169](index=169&type=chunk)[170](index=170&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes significant growth in investment income and portfolio size to the October 2024 Loan Portfolio Acquisition, with the **$307.5 million** portfolio focused on first-lien senior secured cannabis loans, all rated 'Grade 2' - The company's investment strategy focuses on four primary sub-strategies: Cannabis, Growth & Technology, Esoteric & Asset-Based Lending, and Liquidity Solutions[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - As of June 30, 2025, the top three portfolio companies represented **39.5%** of the portfolio's fair value, and the single largest portfolio company represented **16.8%**[209](index=209&type=chunk) - All investments in the portfolio were rated 'Grade 2' as of June 30, 2025, indicating they are performing in-line with expectations and involve an acceptable level of risk similar to the time of origination[212](index=212&type=chunk) Operating Expenses Comparison (Six Months Ended June 30) | Expense Category (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Income-based incentive fees | $3,885 | $329 | | Management fee | $2,606 | $492 | | General and administrative expense | $2,341 | $0 | | Transaction expenses related to Loan Portfolio Acquisition | $0 | $2,639 | | **Total operating expenses** | **$11,456** | **$4,396** | | Waivers / Expense limitation | $(1,766) | $0 | | **Net operating expenses** | **$9,690** | **$4,396** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces valuation, interest rate, and credit risks, with **76.2%** of its debt portfolio in floating-rate investments, where a 100 basis point rate increase could boost annual net income by **$1.8 million** - As of June 30, 2025, **76.2%** of the company's debt investments by principal balance were floating-rate, while **23.8%** were fixed-rate[270](index=270&type=chunk) Annualized Impact of Interest Rate Changes on Net Income (in thousands) | Change in Interest Rates | Increase (Decrease) in Net Income | | :--- | :--- | | Up 300 basis points | $6,445 | | Up 200 basis points | $4,146 | | Up 100 basis points | $1,848 | | Down 100 basis points | $(1,088) | | Down 200 basis points | $(1,730) | | Down 300 basis points | $(2,242) | [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The company's disclosure controls and procedures were deemed effective as of the end of the period covered by the report[272](index=272&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[273](index=273&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to, nor aware of, any material legal proceedings or threats thereof - As of the filing date, the company is not a party to any material legal proceedings[274](index=274&type=chunk) [Item 1A. Risk Factors](index=79&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, except for new risks associated with the February 2025 senior secured revolving credit facility, including asset pledging and default consequences - The company highlights new risks associated with its senior secured revolving credit facility entered into in February 2025, noting that a significant amount of assets are pledged as collateral[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On April 11, 2025, the company issued **22 shares** of common stock at **$10.71** per share via its Dividend Reinvestment Plan (DRIP), exempt from registration - The company issued **22 shares** of common stock on April 11, 2025, pursuant to its DRIP[280](index=280&type=chunk) [Item 3. Defaults Upon Senior Securities](index=79&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[281](index=281&type=chunk) [Item 5. Other Information](index=81&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the quarter[284](index=284&type=chunk) [Item 6. Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including certifications from the Principal Executive Officer and Principal Financial Officer, and XBRL data

[Company Overview & Highlights](index=1&type=section&id=Company%20Overview%20%26%20Highlights) The company reported strong Q2 2025 financial results, including increased investment income, a stable NAV, and significant capital deployment, supported by a growing investment pipeline [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Chicago Atlantic BDC, Inc. reported $13.1 million in total investment income and $7.7 million in net investment income ($0.34 per share) for Q2 2025, with a portfolio fair value of $307.5 million and NAV per share at $13.23 | Metric | Amount (Million USD) | | :-------------------------------- | :----------------- | | **Financial Performance:** | | | Total Investment Income | 13.1 | | Net Investment Income | 7.7 | | Net Investment Income per Weighted Average Share | 0.34 | | Net Increase in Net Assets from Operations | 8.6 | | Net Increase in Net Assets from Operations per Weighted Average Share | 0.38 | | **Investment Portfolio:** | | | Investment Portfolio Fair Value | 307.5 | | **Per Share Data:** | | | Net Asset Value (NAV) per Share | 13.23 | | **Dividends:** | | | Declared Dividend (per share) | 0.34 | | **Share Information:** | | | Shares of Common Stock Issued and Outstanding | 22,820,408 | - The Board of Directors declared a **cash dividend of $0.34 per share** for the quarter ending September 30, 2025, payable on October 10, 2025, to shareholders of record on September 29, 2025[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Peter Sack highlighted the deployment of **$56 million** in capital through Q3, with a growing investment pipeline exceeding **$780 million** across cannabis and non-cannabis sectors, supported by a new senior credit facility - The company deployed **$56 million** in total capital during Q2 and through Q3 to date[3](index=3&type=chunk) - The investment opportunity pipeline in cannabis and non-cannabis sectors has grown to over **$780 million**[3](index=3&type=chunk) - A new senior credit facility offers significant advantages for meeting borrower debt maturities, growth capital, and potential ESOP transaction needs[3](index=3&type=chunk) [Portfolio and Investment Activity](index=1&type=section&id=Portfolio%20and%20Investment%20Activity) The company's investment portfolio reached **$307.5 million** across 31 companies, with significant capital deployment and no non-accrual loans as of Q2 2025 [Portfolio Overview and Activity](index=1&type=section&id=Portfolio%20Overview%20and%20Activity) As of June 30, 2025, the company's portfolio fair value was approximately **$307.5 million** across 31 companies, with **$39.1 million** deployed in Q2 and **$22.3 million** in principal repayments, maintaining no non-accrual loans | Metric | Amount/Quantity | | :--------------------------------------- | :----------------- | | Investment Portfolio Fair Value (as of June 30, 2025) | 307.5 Million USD | | Number of Portfolio Companies (as of June 30, 2025) | 31 Companies | | Q2 2025 Capital Deployed | 39.1 Million USD | | Capital Deployed Post-Quarter | 17.2 Million USD | | Q2 2025 Principal Repayments | 22.3 Million USD | - As of June 30, 2025, there were **no loans on non-accrual status** in the company's investment portfolio[7](index=7&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) The company demonstrated solid financial performance with increased investment income, a stable NAV, enhanced liquidity, and a declared dividend for the quarter [Results of Operations](index=1&type=section&id=Results%20of%20Operations) Q2 2025 saw total investment income of **$13.08 million** and net investment income of **$7.66 million** ($0.34 per share), with a net increase in net assets from operations of **$8.58 million** ($0.38 per share), driven by unrealized appreciation Q2 2025 Results of Operations (vs. Q1 2025) | Metric | June 30, 2025 (Million USD) | March 31, 2025 (Million USD) | Change (Million USD) | | :--------------------------------------- | :-------------------------- | :-------------------------- | :----------------- | | Total Investment Income | 13.08 | 11.92 | +1.16 | | Net Expenses | 5.42 | 4.27 | +1.15 | | Net Investment Income | 7.66 | 7.65 | +0.01 | | Net Change in Unrealized Appreciation (Depreciation) | 0.92 | (0.03) | +0.95 | | Net Increase in Net Assets from Operations | 8.58 | 7.61 | +0.97 | | Net Investment Income per Share | 0.34 | 0.34 | 0.00 | | Net Increase in Net Assets from Operations per Share | 0.38 | 0.33 | +0.05 | [Net Asset Value (NAV)](index=2&type=section&id=Net%20Asset%20Value%20%28NAV%29) As of June 30, 2025, NAV per share slightly increased to **$13.23** from **$13.19**, with total net assets rising to **$301.8 million**, primarily due to operational growth partially offset by dividends Net Asset Value Per Share and Total Net Assets (Quarterly Comparison) | Metric | June 30, 2025 | March 31, 2025 | Change | | :------------------- | :------------- | :------------- | :--- | | Net Asset Value (NAV) per Share | $13.23 | $13.19 | +$0.04 | | Total Net Assets | $301.8 Million | $301.0 Million | +$0.8 Million | - The slight increase in NAV per share was primarily driven by the growth in net assets from operations, partially offset by dividend payments[8](index=8&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$108.8 million** in liquidity, including **$13.8 million** in cash, with liquidity increasing to **$125.4 million** by August 14, 2025, and no outstanding senior credit facility borrowings Liquidity and Capital Resources | Metric | June 30, 2025 (Million USD) | August 14, 2025 (Million USD) | | :----------------------- | :-------------------------- | :-------------------------- | | Total Liquidity | 108.8 | 125.4 | | Cash and Cash Equivalents | 13.8 | N/A | | Senior Credit Facility Outstanding Borrowings | 5.0 | 0.0 | [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board of Directors declared a **cash dividend of $0.34 per share** for the quarter ending September 30, 2025, payable on October 10, 2025, to shareholders of record on September 29, 2025 Dividend Details | Metric | Detail | | :----------------- | :-------------------------------- | | Dividend Amount (per share) | $0.34 | | Quarter End Date | September 30, 2025 | | Payment Date | October 10, 2025 | | Record Date | September 29, 2025 | [Corporate Information](index=3&type=section&id=Corporate%20Information) This section outlines the company's operational structure, investment focus, includes a forward-looking statements disclaimer, and provides investor contact details [About Chicago Atlantic BDC, Inc.](index=3&type=section&id=About%20Chicago%20Atlantic%20BDC%2C%20Inc.) Chicago Atlantic BDC, Inc. operates as a regulated Business Development Company (BDC) and Regulated Investment Company (RIC), aiming to maximize risk-adjusted equity returns through direct loans to private middle-market companies, particularly in the cannabis sector - The company operates as a specialized finance company, regulated as a Business Development Company (BDC) and electing to be treated as a Regulated Investment Company (RIC) for U.S. federal income tax purposes[14](index=14&type=chunk) - Its investment objective is to maximize shareholders' risk-adjusted equity returns primarily through direct loans to private middle-market companies, with a focus on cannabis companies[14](index=14&type=chunk) - The company is managed by Chicago Atlantic BDC Advisers, LLC, an investment manager focused on the cannabis industry and other niche or underserved areas[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to significant risks and uncertainties that could cause actual results to differ materially from projections, with no obligation for the company to update them unless legally required - Certain information in this report constitutes “forward-looking statements” involving significant risks and uncertainties[15](index=15&type=chunk) - These statements are not historical facts but are based on current expectations, estimates, and projections, which may cause actual results to differ materially from projections[15](index=15&type=chunk) - Investors should not place undue reliance on these forward-looking statements, and the company undertakes no obligation to update or revise them unless required by applicable law[15](index=15&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Investors can direct inquiries to Tripp Sullivan or Lisa Kampf via email at LIEN@chicagoatlantic.com - Contacts: Tripp Sullivan, Lisa Kampf[16](index=16&type=chunk) - Contact Email: LIEN@chicagoatlantic.com[16](index=16&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the company's balance sheet and statements of operations, detailing changes in assets, liabilities, equity, and income statement items for the period [Statements of Assets and Liabilities](index=4&type=section&id=Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets increased to **$331.75 million**, with total liabilities rising to **$29.91 million** due to increased payables and credit line usage, while total net assets slightly grew to **$301.84 million** Key Balance Sheet Items (Quarterly Comparison) | Metric | June 30, 2025 (Million USD) | March 31, 2025 (Million USD) | Change (Million USD) | | :--------------------------------------- | :-------------------------- | :-------------------------- | :----------------- | | **Assets:** | | | | | Investments at Fair Value | 307.50 | 289.26 | +18.24 | | Cash and Cash Equivalents | 13.83 | 14.92 | -1.09 | | Total Assets | 331.75 | 313.70 | +18.05 | | **Liabilities:** | | | | | Payables for Investments Purchased | 11.76 | 0.00 | +11.76 | | Revolving Credit Facility | 5.00 | 0.00 | +5.00 | | Total Liabilities | 29.91 | 12.68 | +17.23 | | **Net Assets:** | | | | | Total Net Assets | 301.84 | 301.02 | +0.82 | | Net Asset Value per Share | 13.23 | 13.19 | +0.04 | [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) For the three months ended June 30, 2025, total investment income rose to **$13.08 million**, with net investment income stable at **$7.66 million**, and a significant positive shift in net unrealized appreciation led to a net increase in net assets from operations of **$8.58 million** Key Statements of Operations Items (Quarterly Comparison) | Metric | June 30, 2025 (Million USD) | March 31, 2025 (Million USD) | Change (Million USD) | | :--------------------------------------- | :-------------------------- | :-------------------------- | :----------------- | | **Investment Income:** | | | | | Interest Income | 11.91 | 11.28 | +0.63 | | Fee Income | 1.17 | 0.64 | +0.53 | | Total Investment Income | 13.08 | 11.92 | +1.16 | | **Expenses:** | | | | | Income-Based Incentive Fee | 1.97 | 1.92 | +0.05 | | Management Fee | 1.35 | 1.26 | +0.09 | | Interest Expense | 0.30 | 0.15 | +0.15 | | Total Expenses | 6.21 | 5.25 | +0.96 | | Net Expenses | 5.42 | 4.27 | +1.15 | | **Net Investment Income (Loss)** | 7.66 | 7.65 | +0.01 | | **Net Change in Unrealized Appreciation (Depreciation) on Investments** | 0.92 | (0.03) | +0.95 | | **Net Increase (Decrease) in Net Assets from Operations** | 8.58 | 7.61 | +0.97 | | **Net Investment Income per Share** | 0.34 | 0.34 | 0.00 | | **Net Increase (Decrease) in Net Assets from Operations per Share** | 0.38 | 0.33 | +0.05 | [Investor Relations](index=2&type=section&id=Investor%20Relations) This section provides details on the Q2 2025 earnings conference call and presentation, including access information for investors [Conference Call and Quarterly Earnings Presentation](index=2&type=section&id=Conference%20Call%20and%20Quarterly%20Earnings%20Presentation) Chicago Atlantic BDC, Inc. hosted a conference call and webcast on August 14, 2025, at 9:00 AM ET to discuss Q2 2025 financial results, with the earnings presentation available on the company's website - The company held a conference call on Thursday, August 14, 2025, at 9:00 AM ET to discuss its Q2 2025 financial results[9](index=9&type=chunk)[13](index=13&type=chunk) - A live audio webcast and replay of the conference call are available on the company's website at lien.chicagoatlantic.com[9](index=9&type=chunk)[10](index=10&type=chunk)[13](index=13&type=chunk) - The Q2 2025 earnings presentation is posted on the “Events & Presentations” page of the company's website at lien.chicagoatlantic.com[12](index=12&type=chunk)

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 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] - 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, compared to 6,214,941 for the same period in 2024, indicating a significant increase in shares[13] Expenses and Cash Flow - Total expenses for the three months ended March 31, 2025, were $5,249,058, up from $2,840,056 in the same period in 2024, reflecting an increase of approximately 84%[13] - The net cash provided by (used in) operating activities was $(7,264,322) for the current period, a decrease from $2,103,079 in the prior year[20] - 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 incurred offering costs of $989,645 during the current period, compared to $756 in the previous year, indicating increased financing activities[20] - The net cash used in financing activities was $(1,746,345), compared to $(1,554,420) in the prior year, showing a slight increase in cash outflow[20] Investment Portfolio - Total investments amount to $288,403,000, with a fair value of $289,264,000, representing 96.1% of net assets[24] - Total Cannabis investments amount to $210,854 million, representing 70.2% of net assets[23] - The company holds equity investments valued at $743,000, with a fair value of $688,000, accounting for 0.2% of total assets[24] - The total fair value of cannabis-related investments is $202.67 million, with a par value of $203.45 million[34] - The total amount of first lien senior secured U.S. debt is $240,063 million, which is 80.0% of net assets[23] Risks and Future Outlook - The company has identified various risks that could impact future performance, including changes in regulation affecting the cannabis industry and potential economic disruptions[8] - The company anticipates continued growth in investment income and is focused on expanding its portfolio and operational capabilities[7] - The company faces significant risks related to interest rate fluctuations, which could materially affect net investment income[112] - The company manages various risks, including market risk and credit risk, through diversified exposures and control mechanisms[102] Shareholder Distributions - The Company declared a quarterly dividend of $0.34 per share on March 14, 2025, totaling $7,758,931, compared to a dividend of $0.25 per share totaling $1,553,736 declared on March 8, 2024[155] - The total distributions for the tax year ended March 31, 2025, were $18,625,335, compared to $9,819,273 for the tax year ended March 31, 2024, indicating a substantial increase[173] Tax and Compliance - The Company intends to maintain its tax treatment as a RIC, requiring it to distribute at least 90% of its investment company taxable income annually[78] - The Company evaluates tax positions and has no uncertain tax positions as of March 31, 2025, indicating a stable tax compliance status[82] - As of March 31, 2025, the Company had $0 in accrued excise taxes, down from $88,709 as of December 31, 2024, indicating improved tax management[79] Valuation and Fair Value - The company utilizes significant unobservable inputs for valuing securities, categorized as Level 3 assets[25] - The company has adopted a multi-step valuation process for its investments, which includes establishing preliminary valuations based on independent third-party valuations[65] - The fair value of First Lien Senior Secured Loans increased from $239,860,206 as of December 31, 2024, reflecting a net change in unrealized appreciation of $74,055[122] Management and Governance - The Adviser waived approximately $658,477 of general and administrative expenses for the three months ended March 31, 2025, which will not be subject to future reimbursement[144] - The Company had co-investments with affiliates amounting to $245,658,531 as of March 31, 2025, down from $272,816,695 as of December 31, 2024[148] - The Expense Limitation Agreement caps the Company's operating expenses at an annualized rate of 2.15% of net assets through September 30, 2025[136]

Company Overview - The company completed its IPO on February 8, 2022, raising approximately $83.3 million from the sale of 6,071,429 shares at $14.00 per share[20]. - The company has been renamed "Chicago Atlantic BDC, Inc." with a new ticker symbol "LIEN" effective October 2, 2024[29]. - As of December 31, 2024, Chicago Atlantic managed $1.9 billion in Capital Under Management, which includes total committed investor capital and available leverage[48]. - The company is classified as an emerging growth company and expects to remain so for up to five years or until certain revenue or market value thresholds are met[191][192]. - The company is regulated as a Business Development Company (BDC) under the 1940 Act, which imposes restrictions on transactions with affiliates and requires a majority of independent directors[195][196]. Investment Strategy - The company has an active pipeline of investments, currently reviewing approximately $644 million in potential investments[35]. - The company has expanded its investment strategy to include companies outside the cannabis and health and wellness sectors, effective April 22, 2024[22]. - The company focuses on investing in private leveraged lower middle-market and middle-market companies with up to $100 million in EBITDA[35]. - The company’s investment strategy includes secured debt, unsecured debt, equity warrants, and direct equity investments[32]. - Chicago Atlantic's investment strategies focus on opportunistic private credit and equity, particularly in esoteric industries and specialty asset-based loans[48]. - The investment strategy includes generating current income from debt investments and capital appreciation from equity-related investments[75]. Market Conditions - The U.S. state-legal cannabis retail sales are estimated to reach $32 billion in 2024 and approximately $58 billion by 2030, indicating significant growth potential in the cannabis market[52]. - In 2024, the capital raising environment for private credit finished with $209 billion in final closes, a 5% increase over 2023, highlighting strong momentum in the market[62]. - The cannabis industry has seen a significant reliance on debt financing, with debt capital increasing as a percentage of total capital raised, reflecting a shift from equity funding[56]. - In 2024, public and private cannabis equity raised only $0.5 billion while debt raised increased to $1.2 billion, showing a growing preference for debt solutions[58]. - The number of cannabis mergers and acquisitions decreased to 45 in 2024, down from 67 in 2023, indicating a potential slowdown in market activity[59]. - Chicago Atlantic expects demand for credit-based solutions to increase as companies prefer less dilutive forms of growth capital amid a scarcity of equity capital[61]. - The lower middle-market and certain parts of the middle-market are expected to provide better risk-adjusted return potential due to reduced competition from banks and large funds[64]. - The cannabis industry remains fragmented and subject to complex regulations, creating significant barriers to entry for new businesses[52]. Management and Operations - The company has restructured its board and management team following the Loan Portfolio Acquisition and Joint Venture[28]. - The management team possesses extensive expertise in cannabis-related and non-cannabis industries, enhancing the company's ability to evaluate investment opportunities[76]. - The company does not have any employees; day-to-day management is handled by the Adviser and its Investment Committee[125]. - The Adviser is responsible for determining fair value, with oversight from the Board of Directors, and utilizes independent third-party valuation firms when necessary[111][112]. - The Adviser provides administrative services, including maintaining financial records and preparing reports to stockholders[170]. Investment Process - The investment process involves a multi-channel sourcing strategy, focusing on strong management teams and direct negotiations with potential portfolio companies[89]. - The company employs a rigorous due diligence process, including preliminary and confirmatory due diligence phases before final investment approval[92][93]. - Investment criteria include targeting businesses with durable competitive advantages and consistent operational performance[87]. - The investment rating system is used to monitor the credit profile and expected returns on each investment, with a five-level numeric rating scale[104]. Financial Management - The company has entered into an Expense Limitation Agreement, capping operating expenses at an annualized rate of 2.15% of net assets through September 30, 2025[26]. - The base management fee is calculated at an annual rate of 1.75% of the company's gross assets, excluding cash and cash equivalents[135]. - The incentive fee on income is based on the company's "Pre-Incentive Fee Net Investment Income," with a hurdle rate of 1.75% per quarter (7% annualized)[136]. - The incentive fee on capital gains equals 20% of cumulative realized capital gains, less cumulative realized capital losses and unrealized capital depreciation[139]. - The company’s liabilities include accrued management fees and incentive fees based on realized capital gains, affecting the NAV calculation[118]. Compliance and Ethics - The company has a formal code of ethics governing the conduct of its officers and directors[182]. - The investment allocation policy aims to manage conflicts of interest in allocating investment opportunities among funds managed by the Company and its affiliates[178][180]. - Compliance policies and procedures are in place to prevent violations of federal securities laws, with annual reviews for adequacy and effectiveness[209]. - Proxy voting responsibility has been delegated to the Adviser, which will vote in the best interest of stockholders[210]. - The company is subject to periodic examination by the SEC for compliance with the 1940 Act[216].

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q4 and the year ended December 31, 2024, on March 31, 2025[4]. - The earnings conference call will take place at 8:30 a.m. Eastern Time on March 31, 2025[4]. - The company has not disclosed specific financial metrics or performance indicators in this report[5]. Dividend Announcement - The company announced a cash dividend for the quarter ending March 31, 2025, details of which will be provided in a press release[13]. - The press release regarding the cash dividend is included as Exhibit 99.2 to the Current Report[14]. Leadership Changes - Mr. Andreas Bodmeier resigned as CEO on March 13, 2025, with no disagreements reported regarding company operations[10]. - Mr. Peter Sack has been appointed as the new CEO, bringing experience as a credit investor and portfolio manager[11][12]. - Ms. Supurna VedBrat and Mr. Patrick McCauley were appointed as Class 1 and Class 3 Directors, respectively, following the resignation of previous directors[6][7]. Company Classification and Strategy - The company is classified as an emerging growth company under the Securities Act[2]. - The company has a focus on sustainable and scalable trading solutions as part of its strategic vision[8].

Financial Reporting - Chicago Atlantic BDC, Inc. will report its financial results for Q3 2024 on November 8, 2024, before market open[2] - An earnings conference call and webcast will be held at 8:00 a.m. Eastern Time on November 8, 2024, to discuss the financial results[2]

Investment Portfolio - As of September 30, 2024, the investment portfolio had an aggregate fair value of approximately $55.8 million, consisting of $43.4 million in first lien, senior secured loans, $11.7 million in senior secured notes, and $0.7 million in equity securities across seven portfolio companies[89]. - The investment portfolio as of December 31, 2023, had an aggregate fair value of approximately $54.1 million, with $46.0 million in first lien, senior secured loans and $8.1 million in senior secured notes across five portfolio companies[89]. - As of September 30, 2024, the investment portfolio's fair value was $55,788,511, compared to $54,120,000 on December 31, 2023, indicating an increase in portfolio value[94]. - The largest portfolio company represented 35.6% of the total fair values of investments as of September 30, 2024, down from 38.7% on December 31, 2023[93]. - The investment portfolio's industry composition as of September 30, 2024, was 96.6% in Wholesale Trade and 3.4% in Real Estate Services[92]. - The geographic distribution of the portfolio as of September 30, 2024, showed 43.8% in the West and 42.7% in the Midwest[91]. - The company had no loans in the portfolio placed on non-accrual status as of September 30, 2024, and December 31, 2023, indicating stable credit performance[97]. - The company’s investments may not have readily available market quotations, leading to potential fluctuations in fair value assessments[121]. - As of September 30, 2024, 100% of the company's portfolio investments are categorized at Level 3, requiring significant estimates for fair value assessment[106]. Investment Strategy - The company focuses on investing in the cannabis industry, with a strategy to partner with private equity firms and entrepreneurs to provide credit and equity financing alternatives[83]. - The investment strategy includes four primary sub-strategies: Cannabis, Growth Capital & Technology, Esoteric & Asset-Based Lending, and Liquidity Solutions[85]. - The company aims to maximize risk-adjusted returns on equity for shareholders by generating current income from debt investments and capital appreciation from equity investments[82]. - The company expects to invest in loans primarily to private leveraged lower middle-market and middle-market companies[82]. - The company may invest in "covenant-lite" loans, which provide borrowers more freedom and may increase the risk of loss compared to loans with complete financial maintenance covenants[82]. - The Company expanded its investment strategy to include investments outside of the cannabis and health and wellness sectors, effective April 22, 2024[114]. Financial Performance - Total investment income for the three months ended September 30, 2024, was approximately $3.2 million, up from $2.9 million in the same period of 2023, reflecting a growth of about 8.9%[98]. - The company reported a total interest income of $2,686,771 for the three months ended September 30, 2024, compared to $2,885,725 for the same period in 2023, showing a decrease of approximately 6.9%[98]. - The company generated fee income of $489,176 for the three months ended September 30, 2024, significantly higher than $31,250 in the same period of 2023, indicating improved fee generation capabilities[98]. - Total operating expenses for the nine months ended September 30, 2024, were $7,557,191, representing a 123% increase compared to $3,381,392 for the same period in 2023[99]. - Net investment income was approximately $0.0 million for the three months ended September 30, 2024, down from $1.6 million in the same period of 2023, primarily due to transaction fees of $2.4 million related to the Loan Portfolio Acquisition[99]. - The net change in unrealized appreciation on investments for the nine months ended September 30, 2024, was $187,324, compared to $166,012 in the same period of 2023, reflecting a positive trend[94]. - The company reported a gross unrealized appreciation of $282,329 and gross unrealized depreciation of $(95,005) for the nine months ended September 30, 2024[100]. Expenses and Fees - The company expects general and administrative expenses to increase in dollar terms during periods of asset growth but decline as a percentage of total assets during such periods[87]. - Management fees decreased by 2% to $745,876 for the nine months ended September 30, 2024, compared to $760,473 in the same period of 2023[99]. - Income-based incentive fees saw a significant decline of 69%, totaling $328,503 for the nine months ended September 30, 2024, down from $1,051,741 in 2023[99]. - Legal expenses decreased by 40% to $200,073 for the nine months ended September 30, 2024, compared to $334,308 in the same period of 2023[99]. - The Company entered into a new expense limitation agreement, capping operating expenses at an annualized rate of 2.15% of net assets through September 30, 2025[117]. Liquidity and Capital Structure - Cash resources as of September 30, 2024, were approximately $30.1 million, down from $32.6 million as of December 31, 2023, with no indebtedness reported[101]. - The company maintains adequate liquidity to fund its unfunded commitments through existing cash and cash equivalents[108]. - The company’s shares have traded at prices both above and below the net asset value per share, indicating potential market volatility[110]. - The company intends to pay quarterly distributions to stockholders, subject to the discretion of the Board of Directors and dependent on various financial factors[110]. - The company declared a quarterly dividend of $0.25 per share for the third quarter of 2024, with total dividends paid amounting to $1,553,676[113]. Market and Risk Factors - The Company is subject to financial market risks, including valuation risk, interest rate risk, and credit risk due to global political tensions[120]. - As of September 30, 2024, 75.6% of the company's debt investments were floating-rate based on PRIME, while 24.4% were fixed-rate investments[122]. - For the year ended December 31, 2023, a 300 basis points increase in interest rates would result in an increase of $1,264 in net income[124]. - A 200 basis points increase in interest rates would lead to an increase of $843 in net income for the same period[124]. - A 100 basis points increase in interest rates would result in an increase of $421 in net income[124]. - A 100 basis points decrease in interest rates would lead to a decrease of $400 in net income[124]. Corporate Governance and Changes - The Company has undergone a leadership change, with Andreas Bodmeier becoming CEO and Umesh Mahajan serving as Co-Chief Investment Officer[117]. - The Company has been renamed "Chicago Atlantic BDC, Inc." with a new ticker symbol "LIEN," effective October 2, 2024[119]. - The effectiveness of the company's disclosure controls and procedures was confirmed as of the end of the reporting period[126]. - The company reported no changes in internal control over financial reporting that materially affected its operations during the three months ended September 30, 2024[127]. - The company is not currently subject to any material legal proceedings that could materially affect its financial condition[128]. Shareholder and Investment Activities - The Company issued 16,605,372 shares of common stock to Chicago Atlantic Loan Portfolio, LLC in exchange for a Loan Portfolio valued at $219,621,125 as of September 28, 2024[114]. - The Company did not repurchase any equity securities during the nine months ended September 30, 2024[114]. - The Company has adopted an "opt out" dividend reinvestment plan (DRIP), issuing shares under this plan during the nine months ended September 30, 2023, with a total of 33 shares issued[115]. - The company has outstanding commitments to fund investments totaling $1.5 million as of September 30, 2024, with no unfunded commitments identified as of December 31, 2023[108].