Financial Data and Key Metrics Changes - As of December 31, 2025, the loan portfolio principal totaled approximately $411 million across 26 portfolio companies, with a weighted average yield to maturity of 16.3%, down from 16.5% in the third quarter [11] - Net interest income for the fourth quarter was $14.2 million, a 4% increase from $13.7 million in the third quarter, primarily due to the collection of past due interest [17] - Distributable earnings per weighted average share were approximately $0.44 for the fourth quarter and $1.92 for the year, with a book value per common share of $14.60 as of December 31, 2025 [19][20] Business Line Data and Key Metrics Changes - Gross originations during the fourth quarter were approximately $19 million, with $5 million advanced to a new borrower and $14 million to existing borrowers [11] - The portfolio consisted of 37.6% fixed-rate loans and 62.4% floating-rate loans, with only 9% exposed to further rate declines [13][14] Market Data and Key Metrics Changes - The current pipeline stands at $616 million, indicating strong demand for growth capital within the cannabis sector [8] - Recent positive momentum in cannabis policy includes President Trump's executive order to reclassify cannabis from Schedule I to Schedule III, which could improve industry economics [9] Company Strategy and Development Direction - The company focuses on debt investments in the cannabis industry, leveraging limited competition to structure senior secured positions with differentiated downside risk [4][6] - The strategy emphasizes a disciplined focus on credit and collateral, with a strong emphasis on risk management and collaboration with borrowers [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on the pipeline and achieve net portfolio growth despite liquidity constraints [24] - The company maintains a conservative approach to underwriting, not lowering standards despite increased demand for debt capital due to rescheduling [26][45] Other Important Information - The company has a CECL reserve of approximately $5.1 million, representing 1.23% of outstanding principal, maintaining strong real estate coverage of 1.2 times [18] - Total leverage was 32% of book equity as of December 31, 2025, with $49.1 million outstanding on the senior secured revolving credit facility [15][16] Q&A Session Summary Question: Outlook on pipeline and net portfolio growth - Management remains confident in achieving net portfolio growth, with $50 million of liquidity available for deployment [24] Question: Current yields and impact of rescheduling - Rescheduling has increased demand for debt capital but has not changed pricing or underwriting processes [26] Question: Competition in the market - No new lenders have entered the market post-rescheduling, and significant reforms are needed to increase competition [30][31] Question: Loan number nine's additional funding - The additional funding was part of a recapitalization strategy to improve the borrower's cash flow and operations [37][38] Question: Early repayments on loans - Loan number one was refinanced, while loan number 27 was paid off without pursuing refinancing due to various considerations [42] Question: Pipeline increase and pricing consistency - The increase in the pipeline reflects a broader range of opportunities, but underwriting standards and pricing remain unchanged [44][45]

Financial Data and Key Metrics Changes - As of December 31, 2025, the loan portfolio principal totaled approximately $411 million across 26 portfolio companies, with a weighted average yield to maturity of 16.3%, down from 16.5% in the third quarter [12] - Net interest income for the fourth quarter was $14.2 million, a 4% increase from $13.7 million in the third quarter, primarily due to the collection of past due interest [18] - Total leverage was 32% of book equity as of December 31, compared to 33% as of September 30 [16] Business Line Data and Key Metrics Changes - Gross originations during the fourth quarter were approximately $19 million, with $5 million advanced to a new borrower and $14 million to existing borrowers [12] - The portfolio consisted of 37.6% fixed-rate loans and 62.4% floating-rate loans, with only 9% exposed to further rate declines [13][14] Market Data and Key Metrics Changes - The current pipeline stands at $616 million, indicating strong demand for debt capital in the cannabis sector [9] - The company has not experienced an over-allocation of capital, which is leading to compressed yields in other sectors of private credit [9] Company Strategy and Development Direction - The company focuses on the cannabis sector, leveraging its expertise to make debt investments in an industry with limited sources of debt capital [5] - The strategy is built on a disciplined focus on credit and collateral, with a strong emphasis on risk management [9] - The company aims to maintain a dividend payout ratio based on distributable earnings per share of 90%-100% for the 2026 tax year [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current environment, noting a strong pipeline and the potential for improved industry economics due to recent policy changes [10] - The company underwrites every investment assuming no regulatory-driven credit improvements, maintaining a conservative approach to risk [11] Other Important Information - The company has distributed $8.47 per common share in dividends since inception, representing an annualized yield on cost of approximately 12.4% [20] - The company received a total of $40.4 million in loan repayments, including early prepayments [21] Q&A Session Summary Question: Can you provide insight into the pipeline and potential net portfolio growth? - Management indicated confidence in achieving net portfolio growth, although liquidity is currently constrained relative to the pipeline [25] Question: How has rescheduling impacted current yields and underwriting? - Rescheduling has increased demand for debt capital but has not changed pricing or underwriting standards [27] Question: Are the new non-accrual loans in Arizona related to the same sponsor? - Yes, the loans are related to the same sponsor, who is navigating a challenging pricing environment [33] Question: Can you explain the logic behind lending more to a troubled borrower? - The company supported the borrower through a recapitalization and acquisition of additional dispensaries, improving cash flow and allowing the borrower to become current on interest [37] Question: What were the reasons for early repayments on certain loans? - Loan number 1 was refinanced with a new credit facility, while loan number 27 was paid off without pursuing refinancing due to various considerations [43]

IMPORTANT INFORMATION Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and we intend such statements to be covered by the safe harbor provisions contained therein. Such forward-looking statements are based on the current intent, belief, expectations and views of future ...