Chicago Atlantic BDC, Inc.(LIEN) - 2025 Q2 - Quarterly Results

Company Overview & Highlights Chicago Atlantic BDC, Inc. reported strong Q2 2025 financial results, including increased investment income and portfolio growth, with a positive outlook from the CEO Second Quarter 2025 Highlights Chicago Atlantic BDC, Inc. achieved $13.1 million in total investment income and $7.7 million in net investment income ($0.34 per share) in Q2 2025, with a portfolio fair value of $307.5 million and NAV per share of $13.23, alongside a declared dividend of $0.34 per share Q2 2025 Financial and Portfolio Highlights | Metric | Amount (Millions 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: | | | 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 noted the company deployed $56 million in total capital in Q2 and Q3 to date, partly financed by a new senior credit facility, which will support borrower needs as the investment pipeline grows to over $780 million - The company deployed $56 million in total capital in Q2 and Q3 to date[3] - The investment opportunity pipeline in both cannabis and non-cannabis sectors has grown to over $780 million[3] - A new senior credit facility will provide significant advantages for meeting borrowers' 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 Portfolio Overview and Activity As of June 30, 2025, the company's investment portfolio fair value was approximately $307.5 million across 31 companies, with $39.1 million deployed to 9 portfolio companies during the quarter and no non-accrual loans Portfolio Overview and Activity Metrics | Metric | Amount/Quantity | | :--------------------------------------- | :-------------------- | | Portfolio Fair Value (as of June 30, 2025) | $307.5 Million | | Number of Portfolio Companies (as of June 30, 2025) | 31 | | Capital Deployed in Q2 2025 | $39.1 Million | | Capital Deployed Post-Quarter | $17.2 Million | | Principal Repayments in Q2 2025 | $22.3 Million | - As of June 30, 2025, there were no loans on non-accrual status in the company's investment portfolio[7] Financial Performance The company reported increased total investment income and net assets from operations in Q2 2025, with stable NAV per share and enhanced liquidity Results of Operations In Q2 2025, total investment income was $13.08 million, with net expenses of $5.42 million, resulting in net investment income of $7.66 million ($0.34 per share) and a net increase in net assets from operations of $8.58 million ($0.38 per share), driven by a positive net change in unrealized appreciation Q2 2025 Results of Operations (Quarter-over-Quarter Comparison) | Metric | June 30, 2025 (Millions USD) | March 31, 2025 (Millions USD) | Change (Millions 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 from $301.0 million to $301.8 million, primarily driven by growth in net assets from operations, partially offset by dividend payments Net Asset Value per Share and Total Net Assets (Quarter-over-Quarter 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 and $5.0 million outstanding on its $100 million senior credit facility, with liquidity increasing to $125.4 million by August 14, 2025, with no outstanding borrowings Liquidity and Capital Resources | Metric | June 30, 2025 (Millions USD) | August 14, 2025 (Millions 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 | Details | | :----------------- | :-------------------------------- | | Dividend Amount (per share) | $0.34 | | Quarter End Date | September 30, 2025 | | Payment Date | October 10, 2025 | | Record Date | September 29, 2025 | Corporate Information Chicago Atlantic BDC, Inc. operates as a BDC and RIC, focusing on direct loans to private middle-market cannabis companies, while cautioning investors about forward-looking statements About Chicago Atlantic BDC, Inc. Chicago Atlantic BDC, Inc. is a specialty 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, aiming to maximize risk-adjusted equity returns by investing in direct loans to private middle-market companies, particularly in the cannabis sector - The company operates as a specialty finance company, regulated as a Business Development Company (BDC) and electing to be treated as a Regulated Investment Company (RIC)[14] - The investment objective is to maximize shareholders' risk-adjusted equity returns primarily by investing in 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, and investors should not unduly rely on them, as the company undertakes no obligation to update or revise them unless required by law - Certain information in the 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 unduly rely 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 with inquiries can contact Tripp Sullivan or Lisa Kampf at LIEN@chicagoatlantic.com - Contacts: Tripp Sullivan, Lisa Kampf[16] - Contact email: LIEN@chicagoatlantic.com[16] Financial Statements The company's Q2 2025 financial statements show increased total assets and net assets, driven by investment growth and positive unrealized appreciation, despite higher liabilities Statements of Assets and Liabilities As of June 30, 2025, total assets increased to $331.75 million from $313.70 million, while total liabilities significantly rose to $29.91 million from $12.68 million, mainly due to new payables for purchased investments and credit facility usage, with total net assets slightly increasing to $301.84 million Key Items from Statements of Assets and Liabilities (Quarter-over-Quarter Comparison) | Metric | June 30, 2025 (Millions USD) | March 31, 2025 (Millions USD) | Change (Millions 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 Purchased Investments | 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 increased to $13.08 million from $11.92 million, with net expenses rising to $5.42 million from $4.27 million, while net investment income remained stable at $7.66 million, and a significant positive net change in unrealized appreciation drove the net increase in net assets from operations to $8.58 million Key Items from Statements of Operations (Quarter-over-Quarter Comparison) | Metric | June 30, 2025 (Millions USD) | March 31, 2025 (Millions USD) | Change (Millions 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 Chicago Atlantic BDC, Inc. hosted a conference call and published an earnings presentation to discuss its Q2 2025 financial results, providing key investor information Conference Call and Quarterly Earnings Presentation Chicago Atlantic BDC, Inc. held a conference call and live audio webcast on August 14, 2025, at 9:00 AM ET to discuss Q2 2025 financial results, with the quarterly 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 has been posted to the "Events & Presentations" page of the company's website at lien.chicagoatlantic.com[12]