Silver Spike Investment (SSIC) - 2025 Q2 - Quarterly Results

Company Overview & Highlights 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 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] CEO Commentary 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] - The investment opportunity pipeline in cannabis and non-cannabis sectors has grown to over $780 million[3] - A new senior credit facility offers significant advantages for meeting borrower debt maturities, growth capital, and potential ESOP transaction needs[3] Portfolio and Investment Activity 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 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] Financial Performance 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 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) 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] Liquidity and Capital Resources 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 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 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. 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] - 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] - 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] Forward-Looking Statements 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] - 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] - 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] Contact Information Investors can direct inquiries to Tripp Sullivan or Lisa Kampf via email at LIEN@chicagoatlantic.com - Contacts: Tripp Sullivan, Lisa Kampf[16] - Contact Email: LIEN@chicagoatlantic.com[16] Financial Statements 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 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 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 This section provides details on the Q2 2025 earnings conference call and presentation, including access information for investors Conference Call and Quarterly Earnings Presentation 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][13] - A live audio webcast and replay of the conference call are available on the company's website at lien.chicagoatlantic.com[9][10][13] - The Q2 2025 earnings presentation is posted on the “Events & Presentations” page of the company's website at lien.chicagoatlantic.com[12]