Silver Spike Investment (US:SSIC)2025-11-13 11:56Financial 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]