What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-08-11 compared with 2022-05-12 · 470 added, 373 removed, 2091 unchanged (29% of the section changed)

38 unchanged sentences

Three Months Ended

March 31, Year Ended

June 30, Six Months Ended

June 30, Year Ended

2022 2021 2022 2021 2021

(unaudited) (unaudited)

(unaudited) (unaudited) (unaudited) (unaudited)

Investment income

11 unchanged sentences

Interest income 1,742 — 3,869 — 260

Paid-in-kind interest income 409 — 409 — —

Total investment income 43,552 38,021 85,235 74,324 157,348

9 unchanged sentences

Net investment income after taxes 19,288 18,686 38,771 36,285 74,307

Realized and unrealized (losses) gains

Net realized (losses) gains on:

Realized and unrealized gains (losses)

Net realized gains (losses) on:

Non-controlled, non-affiliated investments 180 445 208 471 (4,100)

2 unchanged sentences

Foreign currency — (4) — (11) (3)

Net realized (losses) gains (69) (4,128) 840

Net realized gains (losses) 180 441 111 (3,687) 840

Net change in unrealized (depreciation) appreciation on:

4 unchanged sentences

Net realized and unrealized (losses) gains (20,554) 9,283 (32,148) 41,398 44,457

Net increase in net assets resulting from operations $ 7,889 $ 49,714 $ 118,764

Net (decrease) increase in net assets resulting from operations $ (1,266) $ 27,969 $ 6,623 $ 77,683 $ 118,764

Per share information—basic and diluted(1)

Net increase in net assets per share resulting from operations $ 0.14 $ 0.88 $ 2.09

Net (decrease) increase in net assets per share resulting from operations $ (0.02) $ 0.49 $ 0.12 $ 1.37 $ 2.09

Net investment income per share $ 0.34 $ 0.33 $ 0.68 $ 0.64 $ 1.31

7 unchanged sentences

Three Months Ended

March 31, Year Ended

June 30, Six Months Ended

June 30, Year Ended

2022 2021 2022 2021 2021

(unaudited) (unaudited)

(unaudited) (unaudited) (unaudited) (unaudited)

Changes in net assets from operations:

Net investment income $ 19,288 $ 18,686 $ 38,771 $ 36,285 $ 74,307

Net realized (loss) gain on investments (69) (4,121) 843

Net realized gain (loss) on investments 180 445 111 (3,676) 843

Net realized loss on foreign currency — (4) — (11) (3)

Net change in unrealized (depreciation) appreciation on investments (20,734) 8,842 (32,259) 45,085 43,617

Net increase in net assets resulting from operations 7,889 49,714 118,764

Net (decrease) increase in net assets resulting from operations (1,266) 27,969 6,623 77,683 118,764

Changes in net assets from shareholders' distributions:

4 unchanged sentences

Repurchase of common stock — (5,163) — (10,454) (10,467)

Net increase in net assets resulting from capital share transactions — 1 5,022

Net (decrease) increase in net assets resulting from capital share transactions — (31) — (30) 5,022

Total (decrease) increase in net assets (17,215) 12,938 (25,274) 47,624 52,256

10 unchanged sentences

Three Months Ended

March 31, Year Ended

June 30, Six Months Ended

June 30, Year Ended

2022 2021 2022 2021 2021

(unaudited) (unaudited)

(unaudited) (unaudited) (unaudited) (unaudited)

Operating activities:

Net increase in net assets resulting from operations $ 7,889 $ 49,714 $ 118,764

Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:

Net (decrease) increase in net assets resulting from operations $ (1,266) $ 27,969 $ 6,623 $ 77,683 $ 118,764

Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash used in operating activities:

Net accretion of discount on investments (2,478) (2,733) (4,974) (5,905) (11,738)

4 unchanged sentences

Proceeds from sale of investments 6,591 5,131 8,875 20,131 259,050

Net realized loss (gain) on investments 69 4,121 (843)

Net realized (gain) loss on investments (180) (445) (111) 3,676 (843)

Net change in unrealized depreciation (appreciation) on investments 20,734 (8,842) 32,259 (45,085) (43,617)

10 unchanged sentences

Increase (decrease) in subordinated incentive fee on income payable (42) — 149 (4,323) (381)

Net cash (used in) provided by operating activities (14,626) 1,149 (49,248)

Net cash used in operating activities (30,484) (64,124) (45,110) (62,975) (49,248)

Financing activities:

4 unchanged sentences

Debt issuance costs paid (1,025) (990) (1,725) (5,384) (5,384)

Net cash provided by (used in) financing activities 28,352 (19,422) 33,108

Net cash provided by financing activities 55,526 63,979 83,878 44,557 33,108

Net increase (decrease) in cash and restricted cash 25,042 (145) 38,768 (18,418) (16,140)

10 unchanged sentences

Consolidated Schedule of Investments (unaudited)

March 31, 2022

June 30, 2022

(in thousands)

3 unchanged sentences

Adapt Laser Acquisition, Inc., L+1200, 1.00% LIBOR Floor, 12/31/2023(t) 3 Month LIBOR Capital Equipment $ 11,114 $ 11,114 $ 9,781

Adapt Laser Acquisition, Inc., L+1000, 1.00% LIBOR Floor, 12/31/2023 3 Month LIBOR Capital Equipment 2,000 2,000 1,605

Adapt Laser Acquisition, Inc., L+1200, 1.00% LIBOR Floor, 12/31/2023(t) 3 Month LIBOR Capital Equipment 2,051 2,051 1,754

Aegis Toxicology Sciences Corp., L+550, 1.00% LIBOR Floor, 5/9/2025(m) 3 Month LIBOR Healthcare & Pharmaceuticals 6,104 6,046 6,119

4 unchanged sentences

Advertising, Printing & Publishing 17,500 17,319 17,238

Alpine US Bidco, LLC, L+525, 1.00% LIBOR Floor, 5/3/2028(i)(n) 3 Month LIBOR Beverage, Food & Tobacco 2,000 1,870 1,855

American Clinical Solutions LLC, 7.00%, 12/31/2022(m) None Healthcare & Pharmaceuticals 3,500 3,482 3,439

4 unchanged sentences

Business 3,333 (29) —

American Teleconferencing Services, Ltd., Prime+550, 6/8/2023(m)(q) Prime Telecommunications 16,154 15,621 3,211

American Teleconferencing Services, Ltd., Prime+550, 3/31/2022(m) Prime Telecommunications 3,116 3,116 3,116

American Teleconferencing Services, Ltd., 0.00% Unfunded, 3/31/2022(m)(o) None Telecommunications 235 — —

American Teleconferencing Services, Ltd., Prime+550, 6/30/2022(q) Prime Telecommunications 3,116 3,116 1,772

American Teleconferencing Services, Ltd., Prime+550, 6/8/2023(q) Prime Telecommunications 16,154 15,621 —

American Teleconferencing Services, Ltd., 0.00% Unfunded, 6/30/2022(o) None Telecommunications 235 — —

Analogic Corp., L+525, 1.00% LIBOR Floor, 6/21/2024(m)(n) 3 Month LIBOR Healthcare & Pharmaceuticals 4,875 4,838 4,771

7 unchanged sentences

Appalachian Resource Company, LLC, L+500, 1.00% LIBOR Floor, 9/10/2023 1 Month LIBOR Metals & Mining 11,137 10,285 10,552

Appalachian Resource Company, LLC, 0.00% Unfunded, 9/10/2023(o) None Metals & Mining 500 — —

Appalachian Resource Company, LLC, L+1000, 1.00% LIBOR Floor, 9/10/2023 1 Month LIBOR Metals & Mining 5,000 5,000 4,994

Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(m)(n) 1 Month LIBOR Construction & Building 14,307 14,075 10,122

Atlas Supply LLC, 11.00%, 4/29/2025 None Retail 5,000 5,000 4,988

Avison Young (USA) Inc., L+575, 0.00% LIBOR Floor, 1/31/2026(h)(m) (u) Banking, Finance, Insurance & Real Estate 2,679 2,648 2,638

5 unchanged sentences

Business 474 — (9)

Berlitz Holdings, Inc., S+900, 1.00% SOFR Floor, 2/14/2025(r) 1 Month SOFR Services:

Berlitz Holdings, Inc., S+900, 1.00% SOFR Floor, 2/14/2025 1 Month SOFR Services:

Business 13,800 12,840 13,007

1 unchanged sentence

Durable 13,090 12,790 12,746

Bradshaw International Parent Corp., L+575, 1.00% LIBOR Floor, 10/21/2026 1 Month LIBOR Consumer Goods:

Durable 307 267 299

Bradshaw International Parent Corp., 0.50% Unfunded, 10/21/2026 None Consumer Goods:

Durable 1,537 — (40)

Cabi, LLC, S+950, 1.00% SOFR Floor, 2/28/2027(m) 1 Month SOFR Retail 22,358 22,033 22,022

Cadence Aerospace, LLC, L+850, 1.00% LIBOR Floor, 11/14/2023(m)(n)(t) 3 Month LIBOR Aerospace & Defense 39,168 38,939 38,531

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

June 30, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Cardenas Markets LLC, L+625, 1.00% LIBOR Floor, 6/3/2027(m) 6 Month LIBOR Retail 10,890 10,791 10,890

5 unchanged sentences

Business 22,618 22,618 22,618

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Cennox, Inc., L+600, 1.00% LIBOR Floor, 5/4/2026(n) 3 Month LIBOR Services:

9 unchanged sentences

CION/EagleTree Partners, LLC, 14.00%, 12/21/2026(h)(s)(t) None Diversified Financials 62,274 62,274 62,274

CircusTrix Holdings, LLC, L+800, 1.00% LIBOR Floor, 1/16/2024(m)(n)(t) 1 Month LIBOR Hotel, Gaming & Leisure 26,861 26,823 26,089

CircusTrix Holdings, LLC, L+800, 1.00% LIBOR Floor, 1/16/2024(m)(t) 1 Month LIBOR Hotel, Gaming & Leisure 2,734 2,717 2,656

CircusTrix Holdings, LLC, L+800, 1.00% LIBOR Floor, 7/16/2023(m)(t) 1 Month LIBOR Hotel, Gaming & Leisure 1,961 1,862 2,322

CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 1/16/2024(m)(n) 1 Month LIBOR Hotel, Gaming & Leisure 26,918 26,874 26,414

CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 1/16/2024(m) 1 Month LIBOR Hotel, Gaming & Leisure 2,740 2,718 2,689

CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 7/16/2023(m) 1 Month LIBOR Hotel, Gaming & Leisure 1,565 1,500 1,858

Community Tree Service, LLC, S+850, 1.00% SOFR Floor, 6/17/2027 3 Month SOFR Construction & Building 12,500 12,500 12,500

Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023(q) 3 Month LIBOR Beverage, Food & Tobacco 877 765 114

Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023(m)(q) 3 Month LIBOR Beverage, Food & Tobacco 376 350 54

Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023(q) 3 Month LIBOR Beverage, Food & Tobacco 355 316 46

Coyote Buyer, LLC, L+600, 1.00% LIBOR Floor, 2/6/2026(m)(n) 6 Month LIBOR Chemicals, Plastics & Rubber 34,213 34,019 33,699

Coyote Buyer, LLC, L+800, 1.00% LIBOR Floor, 8/6/2026(n) 3 Month LIBOR Chemicals, Plastics & Rubber 6,156 6,064 6,156

Coyote Buyer, LLC, L+600, 1.00% LIBOR Floor, 2/6/2025(n) 3 Month LIBOR Chemicals, Plastics & Rubber 750 750 739

Coyote Buyer, LLC, 0.50% Unfunded, 2/6/2025 None Chemicals, Plastics & Rubber 1,750 — (26)

8 unchanged sentences

Diversified & Production 2,652 2,632 245

DMT Solutions Global Corp., L+750, 1.00% LIBOR Floor, 7/2/2024(m) (v) Services:

DMT Solutions Global Corp., L+750, 1.00% LIBOR Floor, 7/2/2024(n) (v) Services:

Business 9,403 9,299 8,909

5 unchanged sentences

Diversified & Production — — 1,848

EnTrans International, LLC, L+600, 0.00% LIBOR Floor, 11/1/2024(m) 1 Month LIBOR Capital Equipment 24,375 24,260 23,887

Extreme Reach, Inc., L+700, 1.25% LIBOR Floor, 3/29/2024(m)(n) 1 Month LIBOR Media:

2 unchanged sentences

Diversified & Production 1,744 — —

Foundation Consumer Healthcare, LLC, L+638, 1.00% LIBOR Floor, 2/12/2027(m)(n) 3 Month LIBOR Healthcare & Pharmaceuticals 30,799 30,551 30,837

Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 2/12/2027 None Healthcare & Pharmaceuticals 2,094 — 3

FuseFX, LLC, L+575, 1.00% LIBOR Floor, 10/1/2024(m)(n) 1 Month LIBOR Media:

Diversified & Production 19,949 19,771 19,749

Fusion Connect Inc., L+750, 1.00% LIBOR Floor, 1/18/2027(m) 3 Month LIBOR High Tech Industries 19,950 19,376 19,401

Future Pak, LLC, L+800, 2.00% LIBOR Floor, 7/2/2024(m) 1 Month LIBOR Healthcare & Pharmaceuticals 32,304 32,304 31,941

See accompanying notes to consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (unaudited)

March 31, 2022

June 30, 2022

(in thousands)

1 unchanged sentence

Units(e) Cost(d) Fair

Foundation Consumer Healthcare, LLC, L+550, 1.00% LIBOR Floor, 2/12/2027(m)(n) 3 Month LIBOR Healthcare & Pharmaceuticals 29,291 29,071 29,291

Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 2/12/2027 None Healthcare & Pharmaceuticals 2,094 — —

FuseFX, LLC, L+575, 1.00% LIBOR Floor, 10/1/2024(m)(n) 1 Month LIBOR Media:

Diversified & Production 19,898 19,737 19,724

Fusion Connect Inc., L+750, 1.00% LIBOR Floor, 1/18/2027(m) 3 Month LIBOR High Tech Industries 19,900 19,354 19,303

Future Pak, LLC, L+800, 2.00% LIBOR Floor, 7/2/2024(m) 1 Month LIBOR Healthcare & Pharmaceuticals 28,908 28,908 28,583

Gold Medal Holdings, Inc., S+700, 1.00% SOFR Floor, 3/17/2027(m) 3 Month SOFR Services:

8 unchanged sentences

Business 9,343 9,333 7,288

Heritage Power, LLC, L+600, 1.00% LIBOR Floor, 7/30/2026 6 Month LIBOR Energy:

Heritage Power, LLC, L+600, 1.00% LIBOR Floor, 7/30/2026(i) 6 Month LIBOR Energy:

Oil & Gas 8,622 6,719 5,173

3 unchanged sentences

Oil & Gas 10,943 11,267 8,481

Homer City Generation, L.P., L+1400, 1.00% LIBOR Floor, 4/29/2022 1 Month LIBOR Energy:

Oil & Gas 1,000 986 1,000

Homer City Generation, L.P., 0.00% Unfunded, 1/29/2023(o) None Energy:

6 unchanged sentences

HW Acquisition, LLC, 0.50% Unfunded, 9/28/2026 None Capital Equipment 2,200 — (69)

Independent Pet Partners Intermediate Holdings, LLC, 6.00%, 11/20/2023(m)(t) None Retail 10,449 10,399 9,313

Independent Pet Partners Intermediate Holdings, LLC, Prime+550, 12/22/2022(m) Prime Retail 2,085 2,085 2,085

Independent Pet Partners Intermediate Holdings, LLC, L+600, 0.00% LIBOR Floor, 12/22/2022(m) 3 Month LIBOR Retail 264 264 264

Independent Pet Partners Intermediate Holdings, LLC, 6.00%, 11/20/2023(t) None Retail 10,608 10,565 9,839

Independent Pet Partners Intermediate Holdings, LLC, Prime+550, 12/22/2022(t) Prime Retail 2,127 2,127 2,127

Independent Pet Partners Intermediate Holdings, LLC, L+650, 0.00% LIBOR Floor, 12/22/2022(t) 3 Month LIBOR Retail 268 268 268

InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023(m)(n) 3 Month LIBOR Media:

15 unchanged sentences

Durable 13,536 13,461 13,536

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

June 30, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Invincible Boat Company LLC, L+650, 1.50% LIBOR Floor, 8/28/2025 1 Month LIBOR Consumer Goods:

Durable 239 239 239

Invincible Boat Company LLC, 0.50% Unfunded, 8/28/2025 None Consumer Goods:

5 unchanged sentences

Consumer 11,664 11,620 9,687

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

JP Intermediate B, LLC, L+550, 1.00% LIBOR Floor, 11/20/2025(m) 3 Month LIBOR Beverage, Food & Tobacco 13,896 13,732 11,638

1 unchanged sentence

Durable 13,090 12,647 12,370

Klein Hersh, LLC, S+750, 0.50% SOFR Floor, 4/27/2027(m) 3 Month SOFR Services:

Business 19,922 19,922 19,922

KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024(m) 6 Month LIBOR Consumer Goods:

2 unchanged sentences

Consumer 9,950 9,772 9,807

LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(m)(n)(t) 3 Month LIBOR Services:

LAV Gear Holdings, Inc., S+750, 1.00% SOFR Floor, 10/31/2024(m)(n)(t) 3 Month SOFR Services:

Business 27,914 27,640 27,077

LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(m)(n)(t) 3 Month LIBOR Services:

LAV Gear Holdings, Inc., S+750, 1.00% SOFR Floor, 10/31/2024(m)(n)(t) 3 Month SOFR Services:

Business 4,579 4,550 4,442

2 unchanged sentences

Durable 14,063 13,880 14,063

Lift Brands, Inc., L+750, 1.00% LIBOR Floor, 6/29/2025(m)(n)(r) 1 Month LIBOR Services:

Lift Brands, Inc., L+750, 1.00% LIBOR Floor, 6/29/2025(m)(n) 1 Month LIBOR Services:

Consumer 23,405 23,405 23,288

Lift Brands, Inc., 9.50%, 6/29/2025(m)(n)(r)(t) None Services:

Lift Brands, Inc., 9.50%, 6/29/2025(m)(n) None Services:

Consumer 5,556 5,481 5,126

Lift Brands, Inc., 6/29/2025(m)(n)(p)(r) None Services:

Lift Brands, Inc., 6/29/2025(m)(n)(p) None Services:

Consumer 5,296 4,880 4,594

25 unchanged sentences

Business 2,656 (11) —

Moss Holding Company, L+700, 1.00% LIBOR Floor, 4/17/2024(m)(n)(t) 3 Month LIBOR Services:

Moss Holding Company, S+700, 1.00% SOFR Floor, 4/17/2024(m)(n)(t) 3 Month SOFR Services:

Business 19,660 19,553 18,628

1 unchanged sentence

Business 106 — —

Moss Holding Company, 0.50% Unfunded, 4/17/2023 None Services:

Business 2,126 — (117)

NASCO Healthcare Inc., L+550, 1.00% LIBOR Floor, 6/30/2023(m) 3 Month LIBOR Services:

Business 9,536 9,536 9,536

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

June 30, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Neptune Flood Inc., L+600, 1.00% LIBOR Floor, 10/21/2026(m) 3 Month LIBOR Banking, Finance, Insurance & Real Estate 9,117 9,058 9,117

4 unchanged sentences

NWN Parent Holdings LLC, L+650, 1.00% LIBOR Floor, 5/7/2026(m) 3 Month LIBOR High Tech Industries 13,033 12,929 13,000

NWN Parent Holdings LLC, L+650, 1.00% LIBOR Floor, 5/7/2026 3 Month LIBOR High Tech Industries 420 402 420

NWN Parent Holdings LLC, 0.50% Unfunded, 5/7/2026 None High Tech Industries 1,800 (18) (5)

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Optio Rx, LLC, L+700, 0.00% LIBOR Floor, 6/28/2024(m)(n) 1 Month LIBOR Healthcare & Pharmaceuticals 22,719 22,649 22,548

2 unchanged sentences

Pentec Acquisition Corp., L+600, 1.00% LIBOR Floor, 10/8/2026(m) 1 Month LIBOR Healthcare & Pharmaceuticals 24,875 24,660 24,564

PetroChoice Holdings, Inc., L+500, 1.00% LIBOR Floor, 8/20/2022 3 Month LIBOR Chemicals, Plastics & Rubber 3,885 3,849 3,671

PH Beauty Holdings III.

4 unchanged sentences

Polymer Additives, Inc., L+600, 0.00% LIBOR Floor, 7/31/2025(m) 3 Month LIBOR Chemicals, Plastics & Rubber 19,300 19,107 18,624

RA Outdoors, LLC, L+675, 1.00% LIBOR Floor, 4/8/2026(m) 3 Month LIBOR Media:

Diversified & Production 15,177 15,177 14,930

RA Outdoors, LLC, L+675, 1.00% LIBOR Floor, 4/8/2026 3 Month LIBOR Media:

Project Castle, Inc., S+550, 0.50% SOFR Floor, 6/1/2029(i)(m) 1 Month SOFR Services:

Business 10,000 8,950 8,950

RA Outdoors, LLC, S+675, 1.00% SOFR Floor, 4/8/2026(m) 3 Month SOFR Media:

Diversified & Production 10,979 10,979 10,938

11 unchanged sentences

Business 2,885 — —

RumbleOn, Inc., L+825, 1.00% LIBOR Floor, 8/31/2026(m) 3 Month LIBOR Automotive 13,930 12,974 13,338

RumbleOn, Inc., L+825, 1.00% LIBOR Floor, 8/31/2026 3 Month LIBOR Automotive 4,204 4,171 3,983

RumbleOn, Inc., L+825, 1.00% LIBOR Floor, 8/31/2026(m) 3 Month LIBOR Automotive 13,895 12,983 13,166

RumbleOn, Inc., 0.00% Unfunded, 2/28/2023(o) None Automotive 1,775 (18) (93)

1 unchanged sentence

Sequoia Healthcare Management, LLC, 12.75%, 8/21/2023(m)(n)(q) None Healthcare & Pharmaceuticals 8,525 8,457 6,394

SIMR, LLC, L+1700, 2.00% LIBOR Floor, 9/7/2023(r)(t) 1 Month LIBOR Healthcare & Pharmaceuticals 20,760 20,651 17,283

Service Compression, LLC, S+1000, 1.00% SOFR Floor, 5/6/2027(m)(t) 3 Month SOFR Energy:

Oil & Gas 22,674 22,297 22,277

Service Compression, LLC, 0.50% Unfunded, 5/6/2025 None Energy:

Oil & Gas 7,326 (120) (128)

SIMR, LLC, L+1700, 2.00% LIBOR Floor, 9/7/2023(q)(r)(t) 1 Month LIBOR Healthcare & Pharmaceuticals 22,066 21,277 18,094

Sleep Opco, LLC, L+650, 1.00% LIBOR Floor, 10/12/2026(m) 3 Month LIBOR Retail 13,184 12,954 13,068

Sleep Opco, LLC, 0.50% Unfunded, 10/12/2026(m) None Retail 1,750 (32) (15)

Sleep Opco, LLC, 0.50% Unfunded, 10/12/2026 None Retail 1,750 (30) (15)

Spinal USA, Inc.

4 unchanged sentences

/ Precision Medical Inc., L+950, 10/1/2022(m)(t) 3 Month LIBOR Healthcare & Pharmaceuticals 723 674 546

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

June 30, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Spinal USA, Inc.

3 unchanged sentences

Tenere Inc., L+850, 1.00% LIBOR Floor, 5/5/2025(m)(n) 3 Month LIBOR Capital Equipment 18,080 18,071 18,080

Tensar Corp., L+675, 1.00% LIBOR Floor, 11/20/2025(m) 3 Month LIBOR Chemicals, Plastics & Rubber 4,938 4,846 4,951

Thrill Holdings LLC, S+650, 1.00% SOFR Floor, 5/27/2027(m) 6 Month SOFR Media:

Diversified & Production 20,652 20,652 20,652

Thrill Holdings LLC, 1.00% Unfunded, 5/27/2024 None Media:

Diversified & Production 3,261 — —

Thrill Holdings LLC, 0.50% Unfunded, 5/27/2027 None Media:

Diversified & Production 1,739 — —

Tony's Finer Foods Enterprises, LLC, S+600, 1.00% SOFR Floor, 4/20/2028(n) 3 Month SOFR Services:

Consumer 17,674 17,503 17,674

Tony's Finer Foods Enterprises, LLC, 0.50% Unfunded, 4/20/2027 None Services:

Consumer 2,326 — —

Trademark Global, LLC, L+625, 1.00% LIBOR Floor, 7/30/2024 1 Month LIBOR Services:

2 unchanged sentences

Business 4,615 (17) (248)

Trammell, P.C., L+1800, 2.00% LIBOR Floor, 6/25/2023(t) 1 Month LIBOR Services:

Trammell, P.C., S+1550, 2.00% SOFR Floor, 4/28/2026(t) 1 Month SOFR Services:

Consumer 13,211 13,211 13,211

USALCO, LLC, L+600, 1.00% LIBOR Floor, 10/19/2027(m) 3 Month LIBOR Chemicals, Plastics & Rubber 24,875 24,653 24,782

Vesta Holdings, LLC, L+1000, 1.00% LIBOR Floor, 2/25/2024(m)(t) 1 Month LIBOR Banking, Finance, Insurance & Real Estate 24,122 24,122 24,484

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Vesta Holdings, LLC, L+1000, 1.00% LIBOR Floor, 2/25/2024(m) 1 Month LIBOR Banking, Finance, Insurance & Real Estate 23,782 23,782 23,782

Volta Charging, LLC, 12.00%, 6/19/2024(m) None Media:

2 unchanged sentences

Diversified & Production 6,000 6,000 6,518

West Dermatology Management Holdings, LLC, L+750, 1.00% LIBOR Floor, 2/11/2025 3 Month LIBOR Healthcare & Pharmaceuticals 1,170 1,170 1,170

West Dermatology Management Holdings, LLC, L+600, 1.00% LIBOR Floor, 2/11/2025(m)(n) 3 Month LIBOR Healthcare & Pharmaceuticals 9,417 9,377 9,417

West Dermatology Management Holdings, LLC, L+600, 1.00% LIBOR Floor, 2/11/2025(m) 3 Month LIBOR Healthcare & Pharmaceuticals 3,611 3,587 3,607

West Dermatology Management Holdings, LLC, L+600, 1.00% LIBOR Floor, 2/11/2025(m) 3 Month LIBOR Healthcare & Pharmaceuticals 1,105 1,093 1,105

West Dermatology Management Holdings, LLC, 0.75% Unfunded, 2/11/2022 None Healthcare & Pharmaceuticals 5,230 — —

West Dermatology Management Holdings, LLC, 0.75% Unfunded, 2/11/2025 None Healthcare & Pharmaceuticals 472 — —

West Dermatology Management Holdings, LLC, 0.50% Unfunded, 2/11/2025(m) None Healthcare & Pharmaceuticals 552 — —

Williams Industrial Services Group, Inc., L+900, 1.00% LIBOR Floor, 12/16/2025(n) 1 Month LIBOR Services:

Business 9,625 9,625 9,588

Williams Industrial Services Group, Inc, 0.50% Unfunded, 6/16/2022 None Services:

Business 5,000 — 19

Wind River Systems, Inc., L+675, 1.00% LIBOR Floor, 6/24/2024(n) 3 Month LIBOR High Tech Industries 23,026 22,889 23,026

Wok Holdings Inc., L+625, 0.00% LIBOR Floor, 3/1/2026(m) 3 Month LIBOR Beverage, Food & Tobacco 20,235 19,831 18,414

WorkGenius, Inc., S+700, 0.50% SOFR Floor, 6/7/2027(m) 3 Month SOFR Services:

Business 13,000 13,000 13,000

Xenon Arc, Inc., L+525, 0.75% LIBOR Floor, 12/17/2027(m) 3 Month LIBOR High Tech Industries 9,950 9,840 9,776

4 unchanged sentences

Global Tel*Link Corp., S+1000, 0.00% SOFR Floor, 11/29/2026(n) 1 Month SOFR Telecommunications 11,500 11,369 11,471

PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023 3 Month LIBOR Chemicals, Plastics & Rubber 15,000 14,590 12,094

Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2024(q)(t) 3 Month LIBOR Telecommunications 3,968 3,364 —

RA Outdoors, LLC, S+900, 1.00% SOFR Floor, 10/8/2026(m) 3 Month SOFR Media:

Diversified & Production 1,836 1,836 1,832

Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 11/1/2025 3 Month LIBOR Telecommunications 2,942 2,926 2,935

7 unchanged sentences

Total Collateralized Securities and Structured Products - Equity 2,841 1,602

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

June 30, 2022

(in thousands)

Portfolio Company(a) Index Rate(b) Industry Principal/

Units(e) Cost(d) Fair

Unsecured Debt - 3.1%

4 unchanged sentences

Equity - 8.1%

ARC Financial Partners, LLC, Membership Interests (25% ownership)(o)(r) Metals & Mining N/A — 5

ARC Financial Partners, LLC, Membership Interests (25% ownership)(o)(r) Metals & Mining NA — —

Ascent Resources - Marcellus, LLC, Membership Units(o) Energy:

Oil & Gas 511,255 Units 1,642 1,169

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2022

(in thousands)

Portfolio Company(a) Industry Principal/

Units(e) Cost(d) Fair

Ascent Resources - Marcellus, LLC, Warrants(o) Energy:

15 unchanged sentences

Advertising, Printing & Publishing 10,819 Units — —

Language Education Holdings GP LLC, Common Units(o)(r) Services:

Language Education Holdings GP LLC, Common Units(o) Services:

Business 366,667 Units — —

Language Education Holdings LP, Ordinary Common Units(o)(r) Services:

Language Education Holdings LP, Ordinary Common Units(o) Services:

Business 366,667 Units 825 887

10 unchanged sentences

RumbleOn, Inc., Warrants(o) Automotive 60,606 Units 927 91

Service Compression, LLC, Warrants(o) Energy:

Oil & Gas N/A 509 540

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

June 30, 2022

(in thousands)

Portfolio Company(a) Industry Principal/

Units(e) Cost(d) Fair

SIMR Parent, LLC, Class B Common Units(o)(r) Healthcare & Pharmaceuticals 12,283,163 Units 8,002 —

4 unchanged sentences

Consumer 3,996 Units 1,247 1,506

WorkGenius, LLC, Class A Units(o) Services:

Business 500 Units 500 500

Total Equity 55,213 73,597

5 unchanged sentences

NET ASSETS - 100% $ 905,238

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

March 31, 2022

(in thousands)

All of the Company’s investments are issued by eligible U.S.

2 unchanged sentences

below, investments do not contain a paid-in-kind, or PIK, interest provision.

The 1, 3 and 6 month London Interbank Offered Rate, or LIBOR, rates were 0.45%, 0.96% and 1.47%, respectively, as of March 31, 2022.

The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of March 31, 2022, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to March 31, 2022.

The 1, 3 and 6 month Secured Overnight Financing Rate, or SOFR, rates were 0.30%, 0.64% and 1.08%, respectively, as of March 31, 2022.

The actual SOFR rate for each loan listed may not be the applicable SOFR rate as of March 31, 2022, as the loan may have been priced or repriced based on a SOFR rate prior to or subsequent to March 31, 2022.

The 1, 3 and 6 month London Interbank Offered Rate, or LIBOR, rates were 1.79%, 2.29% and 2.93%, respectively, as of June 30, 2022.

The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of June 30, 2022, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to June 30, 2022.

The 1, 3 and 6 month Secured Overnight Financing Rate, or SOFR, rates were 1.69%, 2.12% and 2.63%, respectively, as of June 30, 2022.

The actual SOFR rate for each loan listed may not be the applicable SOFR rate as of June 30, 2022, as the loan may have been priced or repriced based on a SOFR rate prior to or subsequent to June 30, 2022.

Fair value determined in good faith by the Company’s board of directors (see Note 9), including via delegation to CIM, as the Company’s valuation designee (see Note 2), using significant unobservable inputs unless otherwise noted.

9 unchanged sentences

A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets as defined under Section 55 of the 1940 Act.

As of March 31, 2022, 92.8% of the Company’s total assets represented qualifying assets.

Position or a portion thereof unsettled as of March 31, 2022.

As of June 30, 2022, 93.3% of the Company’s total assets represented qualifying assets.

Position or a portion thereof unsettled as of June 30, 2022.

In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company may be entitled to receive additional residual amounts.

Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.

7-day effective yield as of March 31, 2022.

Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, 34th Street Funding, LLC, or 34th Street, and was pledged as collateral supporting the amounts outstanding under the credit facility with JPMorgan Chase Bank, National Association, or JPM, as of March 31, 2022 (see Note 8).

Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, Murray Hill Funding II, LLC, or Murray Hill Funding II, and was pledged as collateral supporting the amounts outstanding under the repurchase agreement with UBS AG, or UBS, as of March 31, 2022 (see Note 8).

7-day effective yield as of June 30, 2022.

Non-income producing security.

The ultimate interest earned on this loan will be determined based on the portfolio company’s EBITDA at a specified trigger event.

Investment or a portion thereof was on non-accrual status as of March 31, 2022.

Investment or a portion thereof was on non-accrual status as of June 30, 2022.

See accompanying notes to consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (unaudited)

March 31, 2022

June 30, 2022

(in thousands)

Investment determined to be an affiliated investment as defined in the 1940 Act as the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities but does not control the portfolio company.

Fair value as of December 31, 2021 and March 31, 2022, along with transactions during the three months ended March 31, 2022 in these affiliated investments, were as follows:

Three Months Ended March 31, 2022 Three Months Ended March 31, 2022

Fair value as of December 31, 2021 and June 30, 2022, along with transactions during the six months ended June 30, 2022 in these affiliated investments, were as follows:

Six Months Ended June 30, 2022 Six Months Ended June 30, 2022

Non-Controlled, Affiliated Investments Fair Value at

1 unchanged sentence

(Cost)(1) Gross

(Cost)(2) Net Unrealized Gain (Loss) Fair Value at March 31, 2022 Net Realized Gain (Loss) Interest

(Cost)(2) Net Unrealized Gain (Loss) Fair Value at June 30, 2022 Net Realized Gain (Loss) Interest

Income(3) Dividend Income

46 unchanged sentences

Consolidated Schedule of Investments (unaudited)

March 31, 2022

June 30, 2022

(in thousands)

2 unchanged sentences

Investment determined to be a controlled investment as defined in the 1940 Act as the Company is deemed to exercise a controlling influence over the management or policies of the portfolio company due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of such portfolio company.

Fair value as of December 31, 2021 and March 31, 2022, along with transactions during the three months ended March 31, 2022 in these controlled investments, were as follows:

Three Months Ended March 31, 2022 Three Months Ended March 31, 2022

Fair value as of December 31, 2021 and June 30, 2022, along with transactions during the six months ended June 30, 2022 in these controlled investments, were as follows:

Six Months Ended June 30, 2022 Six Months Ended June 30, 2022

Controlled Investments Fair Value at

3 unchanged sentences

Gain (Loss) Fair Value at

March 31, 2022 Net Realized

June 30, 2022 Net Realized

Gain (Loss) Interest

11 unchanged sentences

Consolidated Schedule of Investments (unaudited)

March 31, 2022

June 30, 2022

(in thousands)

As of March 31, 2022, the following investments contain a PIK interest provision whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities:

As of June 30, 2022, the following investments contain a PIK interest provision whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities:

Interest Rate

12 unchanged sentences

CION/EagleTree Partners, LLC Senior Secured Note — 14.00% 14.00%

CircusTrix Holdings, LLC Senior Secured First Lien Debt 6.50% 2.50% 9.00%

David's Bridal, LLC Senior Secured First Lien Debt 6.10% 5.00% 11.10%

12 unchanged sentences

Independent Pet Partners Intermediate Holdings, LLC Senior Secured First Lien Debt — 6.00% 6.00%

Independent Pet Partners Intermediate Holdings, LLC Senior Secured First Lien Debt — 10.25% 10.25%

Independent Pet Partners Intermediate Holdings, LLC Senior Secured First Lien Debt — 7.28% 7.28%

Instant Web, LLC Senior Secured First Lien Debt — 8.24% 8.24%

3 unchanged sentences

Senior Secured First Lien Debt 7.70% 2.00% 9.70%

Lift Brands, Inc.

Senior Secured First Lien Debt — 9.50% 9.50%

Lucky Bucks Holdings LLC Unsecured Note — 12.50% 12.50%

4 unchanged sentences

Senior Secured First Lien Debt — 14.00% 14.00%

Service Compression, LLC Senior Secured First Lien Debt 10.30% 2.00% 12.30%

SIMR, LLC Senior Secured First Lien Debt — 19.00% 19.00%

4 unchanged sentences

Senior Secured First Lien Debt — 17.50% 17.50%

Vesta Holdings, LLC Senior Secured First Lien Debt 7.00% 4.00% 11.00%

WPLM Acquisition Corp.

Unsecured Note — 15.00% 15.00%

As of March 31, 2022, the index rate for $1,789 and $897 was 1 Month LIBOR and 3 Month LIBOR, respectively.

As of March 31, 2022, the index rate for $4,804 and $4,746 was 1 Month LIBOR and 3 Month LIBOR, respectively.

As of June 30, 2022, the index rate for $2,236 and $443 was 1 Month LIBOR and 3 Month LIBOR, respectively.

As of June 30, 2022, the index rate for $4,804 and $4,599 was 1 Month LIBOR and 3 Month LIBOR, respectively.

See accompanying notes to consolidated financial statements.

540 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

28 unchanged sentences

3 in the Company's definitive proxy statement filed on May 13, 2021.

On September 21, 2021, the Company filed articles of amendment to its articles of incorporation, or the Reverse Stock Split Amendment, with the State Department of Assessments and Taxation of the State of Maryland to effect a two to one reverse split of the Company’s shares of common stock, or the Reverse Stock Split.

The Reverse Stock Split became effective in accordance with the terms of the Reverse Stock Split Amendment on September 21, 2021 (as described in further detail in Note 3).

A summary of the Company’s weighted average number of shares of common stock outstanding and earnings per share after adjusting for the Reverse Stock Split is as follows:

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

Three Months Ended March 31, 2021

The Reverse Stock Split became effective in accordance with the terms of the Reverse Stock Split Amendment on September 21, 2021 (as described in further detail in Note 3).

A summary of the Company’s weighted average number of shares of common stock outstanding and earnings per share after adjusting for the Reverse Stock Split is as follows:

Three Months Ended June 30, 2021 Six Months Ended June 30, 2021

Weighted average number of shares of common stock outstanding (as reported) 113,495,366 113,501,166

16 unchanged sentences

Recently Announced Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board, or the FASB, issued ASU 2020-04, Reference Rate Reform (Topic 848):

In June 2022, the Financial Accounting Standards Board, or the FASB, issued ASU 2022-03, Fair Value Measurement (Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions , or ASU 2022-03, which clarifies the guidance when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820.

ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2023.

The Company is evaluating the potential impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting , or ASU 2020-04, which provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform.

5 unchanged sentences

The Company periodically evaluates the creditworthiness of this institution and has not experienced any losses on such deposits.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Foreign Currency Translations

9 unchanged sentences

Treasury securities and repurchase agreements that are collateralized by such securities.

The Company had $15,763 and $87,917 of such investments at March 31, 2022 and December 31, 2021, respectively, which are included in investments, at fair value on the accompanying consolidated balance sheets and on the consolidated schedules of investments.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

The Company had $14,345 and $87,917 of such investments at June 30, 2022 and December 31, 2021, respectively, which are included in investments, at fair value on the accompanying consolidated balance sheets and on the consolidated schedules of investments.

Offering Costs

13 unchanged sentences

The income tax expense or benefit, if any, and the related tax assets and liabilities, where material, are reflected in the Company’s consolidated financial statements.

There were no deferred tax assets or liabilities as of March 31, 2022 or December 31, 2021.

There were no deferred tax assets or liabilities as of June 30, 2022 or December 31, 2021.

Book/tax differences relating to permanent differences are reclassified among the Company’s capital accounts, as appropriate.

7 unchanged sentences

federal, New York State, New York City and Maryland income tax jurisdictions for 2018, 2019 and 2020.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Use of Estimates

6 unchanged sentences

The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions.

The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available as of March 31, 2022;

however, uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of March 31, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19, including from new variants, such as Delta and Omicron.

The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available as of June 30, 2022;

however, uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of June 30, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19, including from new variants, such as Delta and Omicron.

Actual results may materially differ from those estimates.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

Valuation of Portfolio Investments

18 unchanged sentences

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses that the Company ultimately realizes on these investments to materially differ from the valuations currently assigned.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

A portion of the Company’s investments consist of debt securities that are traded on a private over-the-counter market for institutional investments.

12 unchanged sentences

Discounted cash flow analysis, including a terminal value or exit multiple.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

Determination of fair value involves subjective judgments and estimates.

16 unchanged sentences

The model uses the estimated cash flow projections for the underlying investments and an appropriate discount rate is determined based on the latest financial information available for the borrower, prevailing market trends, comparable analysis and other inputs.

The model, key assumptions, inputs, and results are reviewed by designated members of CIM’s management team with final approval from the board of directors.

The model, key assumptions, inputs, and results are reviewed by designated members of CIM’s management team with final approval from the board of directors or its designee.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Consistent with the Company’s valuation policy, the Company evaluates the source of inputs, including any markets in which the Company’s investments are trading, in determining fair value.

2 unchanged sentences

The Company may also use other methods to determine fair value for securities for which it cannot obtain market quotations through brokers or dealers, including the use of an independent valuation firm.

Designated members of CIM’s management team and the Company's board of directors review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation process.

Designated members of CIM’s management team and the Company's board of directors or its designee review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation process.

As a practical expedient, the Company used net asset value, or NAV, as the fair value for its equity investments in CION SOF and BCP Great Lakes Fund LP, and the Company uses NAV as the fair value for its equity investments in CION/EagleTree.

6 unchanged sentences

Upon the prepayment of a loan or security, prepayment premiums, any unamortized loan origination fees, OID, or market discounts/premiums are recorded as interest income.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

The Company may have investments in its investment portfolio that contain a PIK interest provision.

3 unchanged sentences

In order to maintain RIC status, substantially all of this income must be paid out to shareholders in the form of distributions, even if the Company has not collected any cash.

For additional information on investments that contain a PIK interest provision, see the consolidated schedules of investments as of March 31, 2022 and December 31, 2021.

For additional information on investments that contain a PIK interest provision, see the consolidated schedules of investments as of June 30, 2022 and December 31, 2021.

Loans and debt securities, including those that are individually identified as being impaired under Accounting Standards Codification 310, Receivables , or ASC 310, are generally placed on non-accrual status immediately if, in the opinion of management, principal or interest is not likely to be paid, or when principal or interest is past due 90 days or more.

11 unchanged sentences

Such fees are fixed based on contractual terms and are recognized as fee income when earned.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

6 unchanged sentences

Pursuant to the second amended and restated investment advisory agreement, the incentive fee on capital gains was reduced to 17.5%, which became effective on October 5, 2021.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

On a cumulative basis and to the extent that all realized capital losses and unrealized capital depreciation exceed realized capital gains as well as the aggregate realized net capital gains for which a fee has previously been paid, the Company would not be required to pay CIM a capital gains incentive fee.

11 unchanged sentences

The Company’s follow-on continuous public offering commenced on January 25, 2016 and ended on January 25, 2019.

The following table summarizes transactions with respect to shares of the Company’s common stock during the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021:

Three Months Ended

March 31, Year Ended

The following table summarizes transactions with respect to shares of the Company’s common stock during the six months ended June 30, 2022 and 2021 and the year ended December 31, 2021:

Six Months Ended

June 30, Year Ended

2022 2021 2021

7 unchanged sentences

Net shares/proceeds from share transactions — $ — 1,611 $ (30) 311,573 $ 5,022

Since commencing its initial continuous public offering on July 2, 2012 and through March 31, 2022, the Company sold 56,958,440 shares of common stock for net proceeds of $1,160,307 at an average price per share of $20.37.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Since commencing its initial continuous public offering on July 2, 2012 and through June 30, 2022, the Company sold 56,958,440 shares of common stock for net proceeds of $1,160,307 at an average price per share of $20.37.

The net proceeds include gross proceeds received from reinvested shareholder distributions of $237,451, for which the Company issued 13,523,489 shares of common stock, and gross proceeds paid for shares of common stock tendered for repurchase of $232,430, for which the Company repurchased 13,310,927 shares of common stock.

On August 9, 2021, the Company's shareholders approved a proposal that authorizes the Company to issue shares of its common stock at prices below the then current NAV per share of the Company’s common stock in one or more offerings for a 12-month period following such shareholder approval.

The Company has not issued any such shares as of the date of these notes to consolidated financial statements.

On August 9, 2021, the Company's shareholders approved a proposal that authorized the Company to issue shares of its common stock at prices below the then current NAV per share of the Company’s common stock in one or more offerings for a 12-month period following such shareholder approval, which authorization expired on August 9, 2022.

The Company did not issue any such shares through the expiration date.

Distribution Reinvestment Plan

3 unchanged sentences

For additional information regarding the terms of the New DRP, see Note 5.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

Reverse Stock Split

4 unchanged sentences

On October 5, 2021, the Company's shares of common stock commenced trading on the NYSE under the ticker symbol “CION”.

As approved by shareholders on September 7, 2021 at the Company’s final, reconvened 2021 annual meeting of shareholders, the Listing has been staggered such that (i) up to 1/3rd of shares held by all shareholders were available for trading upon Listing, (ii) up to 2/3rd of shares held by all shareholders were available for trading starting 180 days after Listing, or April 4, 2022, and (iii) all shares will be available for trading starting 270 days after Listing, or July 5, 2022.

As a result, the Company will eliminate any outstanding fractional shares of its common stock in connection with the Listing, as permitted by the Maryland General Corporation Law, 270 days after Listing.

As approved by shareholders on September 7, 2021 at the Company’s final, reconvened 2021 annual meeting of shareholders, the Listing was staggered such that (i) up to 1/3rd of shares held by all shareholders were available for trading upon Listing, (ii) up to 2/3rd of shares held by all shareholders were available for trading starting 180 days after Listing, or April 4, 2022, and (iii) all shares were available for trading starting 270 days after Listing, or July 5, 2022.

The Company eliminated all then outstanding fractional shares of its common stock in connection with the Listing, as permitted by the Maryland General Corporation Law, on July 14, 2022.

Pre-Listing Share Repurchase Program

6 unchanged sentences

Any periodic repurchase offers were subject in part to the Company’s available cash and compliance with the BDC and RIC qualification and diversification rules promulgated under the 1940 Act and the Code, respectively.

The following table summarizes the share repurchases completed during the year ended December 31, 2021 and the three months ended March 31, 2022:

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

The following table summarizes the share repurchases completed during the year ended December 31, 2021 and the six months ended June 30, 2022:

Three Months Ended Repurchase Date Shares Repurchased(1) Percentage of Shares Tendered That Were Repurchased Repurchase Price Per Share(1) Aggregate Consideration for Repurchased Shares

5 unchanged sentences

March 31, 2022 N/A — N/A N/A $ —

June 30, 2022 N/A — N/A N/A —

Total for the year ended December 31, 2022 — $ —

2 unchanged sentences

The Company suspended its share repurchase program on July 30, 2021 as discussed in this Note 3.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

Post-Listing Share Repurchase Policy

On September 15, 2021, the Company’s board of directors, including the independent directors, approved a share repurchase policy authorizing the Company to repurchase up to $50 million of its outstanding common stock after the Listing.

On June 24, 2022, the Company’s board of directors, including the independent directors, increased the amount of shares of the Company’s common stock that may be repurchased under the share repurchase policy by $10 million to up to an aggregate of $60 million.

Under the share repurchase policy, the Company may purchase shares of its common stock through various means such as open market transactions, including block purchases, and privately negotiated transactions.

5 unchanged sentences

The 10b5-1 trading plan will be administered by an independent broker and will be subject to price, market volume and timing restrictions.

Since the Company has not yet entered into a 10b5-1 trading plan, during the period from September 15, 2021 to May 5, 2022, the Company did not repurchase any shares of common stock pursuant to the share repurchase policy.

Since the Company has not yet entered into a 10b5-1 trading plan, during the period from September 15, 2021 to August 5, 2022, the Company did not repurchase any shares of common stock pursuant to the share repurchase policy.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Transactions with Related Parties

For the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021, fees and other expenses incurred by the Company related to CIM and its affiliates were as follows:

For the three and six months ended June 30, 2022 and 2021 and the year ended December 31, 2021, fees and other expenses incurred by the Company related to CIM and its affiliates were as follows:

Three Months Ended

March 31, Year Ended December 31,

June 30, Six Months Ended

June 30, Year Ended December 31,

Entity Capacity Description 2022 2021 2022 2021 2021

14 unchanged sentences

The base management fee is payable quarterly in arrears and is calculated based on the two most recently completed calendar quarters.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

The incentive fee consists of two parts.

4 unchanged sentences

These changes to the subordinated incentive fee on income were effective upon the Listing, except for the change to the calculation of the subordinated incentive fee payable to CIM that replaced adjusted capital with the Company's net assets, which was effective on August 10, 2021.

For the three months ended March 31, 2022 and 2021, the Company recorded subordinated incentive fees on income of $4,133 and $0, respectively.

As of March 31, 2022 and December 31, 2021, the liabilities recorded for subordinated incentive fees were $4,133 and $3,942, respectively.

For the three months ended June 30, 2022 and 2021, the Company recorded subordinated incentive fees on income of $4,091 and $0, respectively.

As of June 30, 2022 and December 31, 2021, the liabilities recorded for subordinated incentive fees were $4,091 and $3,942, respectively.

The second part of the incentive fee, which is referred to as the capital gains incentive fee, is described in Note 2.

1 unchanged sentence

however, under the terms of the investment advisory agreement, the fee payable to CIM is based on net realized gains and unrealized depreciation and no such fee is payable with respect to unrealized appreciation unless and until such appreciation is actually realized.

For the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021, the Company had no liability for and did not record any capital gains incentive fees.

For the three and six months ended June 30, 2022 and 2021 and the year ended December 31, 2021, the Company had no liability for and did not record any capital gains incentive fees.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

On April 1, 2018, the Company entered into an administration agreement with CIM pursuant to which CIM furnishes the Company with administrative services including accounting, investor relations and other administrative services necessary to conduct its day-to-day operations.

15 unchanged sentences

and (iii) the expense support could have only been reimbursed within three years from the date the expense support was provided.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

Expense support, if any, was determined as appropriate to meet the objectives of the expense support and conditional reimbursement agreement.

2 unchanged sentences

The specific amount of expense support provided by CIM, if any, was determined at the end of each quarter.

For the three months ended March 31, 2021 and the year ended December 31, 2021, the Company did not receive any expense support from CIM.

For the three and six months ended June 30, 2021 and the year ended December 31, 2021, the Company did not receive any expense support from CIM.

See Note 5 for additional information on the sources of the Company’s distributions.

The Company did not record any obligation to repay expense support from CIM and the Company did not repay any expense support to CIM during the three months ended March 31, 2022 and 2021 or the year ended December 31, 2021.

As of March 31, 2022 and December 31, 2021, the total liability payable to CIM and its affiliates was $11,286 and $12,332, respectively, which primarily related to fees earned by CIM during the three months ended March 31, 2022 and December 31, 2021, respectively.

The Company did not record any obligation to repay expense support from CIM and the Company did not repay any expense support to CIM during the three and six months ended June 30, 2022 and 2021 or the year ended December 31, 2021.

As of June 30, 2022 and December 31, 2021, the total liability payable to CIM and its affiliates was $11,582 and $12,332, respectively, which primarily related to fees earned by CIM during the three months ended June 30, 2022 and December 31, 2021, respectively.

In the event that CIM undertakes to provide investment advisory services to other clients in the future, it will strive to allocate investment opportunities in a fair and equitable manner consistent with the Company’s investment objective and strategies so that the Company will not be disadvantaged in relation to any other client of the investment adviser or its senior management team.

4 unchanged sentences

However, the Company has not experienced claims or losses pursuant to these agreements and believes the risk of loss related to such indemnifications to be remote.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Distributions

7 unchanged sentences

Declared distributions are paid quarterly.

The Company’s board of directors declared or ratified distributions for 11 and 1 record dates during the year ended December 31, 2021 and the three months ended March 31, 2022, respectively.

The following table presents distributions per share that were declared during the year ended December 31, 2021 and the three months ended March 31, 2022:

The Company’s board of directors declared or ratified distributions for 11 and 2 record dates during the year ended December 31, 2021 and the six months ended June 30, 2022, respectively.

The following table presents distributions per share that were declared during the year ended December 31, 2021 and the six months ended June 30, 2022:

Distributions

6 unchanged sentences

March 31, 2022 (one record date) $ 0.2800 $ 15,948

Total distributions for the three months ended March 31, 2022 $ 0.2800 $ 15,948

June 30, 2022 (one record date) $ 0.2800 $ 15,949

Total distributions for the six months ended June 30, 2022 $ 0.5600 $ 31,897

(1) The per share distribution amount has been retroactively adjusted to reflect the Reverse Stock Split as discussed in Note 3.

On March 8, 2022, the Company’s co-chief executive officers declared a regular quarterly distribution of $0.28 per share for the second quarter of 2022 payable on June 8, 2022 to shareholders of record as of June 1, 2022.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

On August 9, 2022, the Company’s co-chief executive officers declared a regular quarterly distribution of $0.31 per share for the third quarter of 2022 payable on September 8, 2022 to shareholders of record as of September 1, 2022.

In connection with the Listing of its shares of common stock on the NYSE, on September 15, 2021, the Company terminated the Old DRP.

2 unchanged sentences

Under the Old DRP and prior to the Listing, distributions to participating shareholders who “opted in” to the Old DRP were reinvested in additional shares of the Company's common stock at a purchase price equal to the estimated net asset value per share of common stock as of the date of issuance.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Upon the Listing, all shareholders were automatically enrolled in the New DRP and will receive distributions as declared by the Company in additional shares of its common stock unless such shareholder affirmatively elects to receive an entire distribution in cash by notifying (i) such shareholder’s financial adviser;

15 unchanged sentences

As a result, CIM has no obligation to provide expense support to the Company in future periods.

For the three months ended March 31, 2021 and the year ended December 31, 2021, none of the Company's distributions resulted from expense support from CIM.

For the three months ended June 30, 2021 and the year ended December 31, 2021, none of the Company's distributions resulted from expense support from CIM.

The Company has not established limits on the amount of funds it may use from available sources to make distributions.

The following table reflects the sources of distributions on a GAAP basis that the Company has declared on its shares of common stock during the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021:

Three Months Ended

March 31, Year Ended

The following table reflects the sources of distributions on a GAAP basis that the Company has declared on its shares of common stock during the six months ended June 30, 2022 and 2021 and the year ended December 31, 2021:

Six Months Ended

June 30, Year Ended

2022 2021 2021

3 unchanged sentences

(1) The per share amount has been retroactively adjusted to reflect the Reverse Stock Split as discussed in Note 3.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

It is the Company's policy to comply with all requirements of the Code applicable to RICs and to distribute at least 90% of its taxable income to its shareholders.

1 unchanged sentence

Accordingly, no federal income tax provision was required for the year ended December 31, 2021.

The Company will also be subject to nondeductible federal excise taxes if the Company does not distribute at least 98.0% of net ordinary income, 98.2% of capital gains, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes.

The Company will also be subject to nondeductible federal excise taxes of 4% if the Company does not distribute at least 98.0% of net ordinary income, 98.2% of capital gains, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Income and capital gain distributions are determined in accordance with the Code and federal tax regulations, which may differ from amounts determined in accordance with GAAP.

11 unchanged sentences

Total accumulated losses $ (128,880)

As of March 31, 2022, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $27,203;

As of June 30, 2022, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $23,484;

the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $131,795;

5 unchanged sentences

and the aggregate cost of securities for Federal income tax purposes was $1,830,098.

The composition of the Company’s investment portfolio as of March 31, 2022 and December 31, 2021 at amortized cost and fair value was as follows:

March 31, 2022 December 31, 2021

The composition of the Company’s investment portfolio as of June 30, 2022 and December 31, 2021 at amortized cost and fair value was as follows:

June 30, 2022 December 31, 2021

Value Percentage of

13 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

The following tables show the composition of the Company’s investment portfolio by industry classification and geographic dispersion, and the percentage, by fair value, of the total investment portfolio assets in such industries and geographies as of March 31, 2022 and December 31, 2021:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Industry Classification Investments at

7 unchanged sentences

Consumer 135,972 7.6 % 119,365 7.2 %

Chemicals, Plastics & Rubber 107,079 6.2 % 109,860 6.6 %

Diversified Financials 99,465 5.6 % 101,032 6.1 %

Chemicals, Plastics & Rubber 86,531 4.8 % 109,860 6.6 %

Retail 83,579 4.7 % 56,726 3.4 %

High Tech Industries 82,547 4.6 % 65,544 3.9 %

Capital Equipment 83,305 4.8 % 82,795 5.0 %

Advertising, Printing & Publishing 78,936 4.4 % 94,610 5.7 %

Oil & Gas 60,937 3.4 % 32,164 1.9 %

Capital Equipment 59,982 3.3 % 82,795 5.0 %

Consumer Goods:

Durable 58,203 3.2 % 58,124 3.5 %

Retail 57,066 3.3 % 56,726 3.4 %

Hotel, Gaming & Leisure 52,426 2.9 % 50,855 3.0 %

Beverage, Food & Tobacco 45,822 2.6 % 49,054 2.9 %

Banking, Finance, Insurance & Real Estate 40,233 2.3 % 40,634 2.4 %

Aerospace & Defense 38,531 2.2 % 38,279 2.3 %

Oil & Gas 37,073 2.1 % 32,164 1.9 %

Banking, Finance, Insurance & Real Estate 38,378 2.1 % 40,634 2.4 %

Construction & Building 37,645 2.1 % 27,585 1.7 %

Consumer Goods:

Non-Durable 34,660 1.9 % 45,682 2.7 %

Construction & Building 27,270 1.6 % 27,585 1.7 %

Telecommunications 20,066 1.1 % 24,649 1.5 %

Automotive 17,147 1.0 % 14,367 0.9 %

Metals & Mining 15,775 0.9 % 10,927 0.7 %

Transportation:

Cargo 12,374 0.7 % 14,106 0.8 %

Metals & Mining 11,008 0.6 % 10,927 0.7 %

Subtotal/total percentage 1,791,107 100.0 % 1,666,122 100.0 %

1 unchanged sentence

Total investments $ 1,805,452 $ 1,754,039

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Geographic Dispersion(1) Investments at

11 unchanged sentences

(1) The geographic dispersion is determined by the portfolio company's country of domicile.

As of March 31, 2022 and December 31, 2021, investments on non-accrual status represented 0.6% and 0.7%, respectively, of the Company's investment portfolio on a fair value basis.

As of June 30, 2022 and December 31, 2021, investments on non-accrual status represented 1.5% and 0.7%, respectively, of the Company's investment portfolio on a fair value basis.

The Company’s investment portfolio may contain senior secured investments that are in the form of lines of credit, delayed draw term loans, revolving credit facilities, or unfunded commitments, which may require the Company to provide funding when requested in accordance with the terms of the underlying agreements.

As of March 31, 2022 and December 31, 2021, the Company’s unfunded commitments amounted to $95,995 and $107,247, respectively.

As of May 5, 2022, the Company’s unfunded commitments amounted to $105,147.

As of June 30, 2022 and December 31, 2021, the Company’s unfunded commitments amounted to $96,129 and $107,247, respectively.

As of August 4, 2022, the Company’s unfunded commitments amounted to $81,369.

Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company.

Refer to Note 11 for further details on the Company’s unfunded commitments.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Joint Ventures

17 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

The following table sets forth the individual investments in CION/EagleTree's portfolio as of March 31, 2022:

The following table sets forth the individual investments in CION/EagleTree's portfolio as of June 30, 2022:

Portfolio Company Index Rate(a) Industry Principal/

Units Cost(b) Fair

Senior Secured First Lien Debt

Berlitz Holdings, Inc., S+900, 1.00% SOFR Floor, 2/14/2025 1 Month SOFR Services:

Business $ 1,200 $ 1,111 $ 1,131

Community Tree Service, LLC, S+8.50%, 1.00% SOFR Floor, 6/17/2027 3 Month SOFR Construction & Building 500 500 500

Future Pak, LLC, L+800, 2.00% LIBOR Floor, 7/2/2024 1 Month LIBOR Healthcare & Pharmaceuticals 1,668 1,650 1,650

Total Senior Secured First Lien Debt 3,261 3,281

Senior Secured Second Lien Debt

20 unchanged sentences

CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend Healthcare & Pharmaceuticals 2,727,273 Units 7,727 8,155

CTS Ultimate Holdings LLC, Class A Preferred Units(d) Construction & Building 3,578,701 Units 1,000 1,000

Dayton HoldCo, LLC, Membership Units(d) Construction & Building 37,264 Units 8,400 13,046

2 unchanged sentences

HW Ultimate Holdings, LP, Class A Membership Units, 4% Dividend Capital Equipment 2,000,000 Units 2,042 1,690

Language Education Holdings GP LLC, Common Units(d) Services:

Business 133,333 Units — —

Language Education Holdings LP, Ordinary Common Units(d) Services:

Business 133,333 Units 300 323

Skillsoft Corp., Class A Common Stock(d) High Tech Industries 243,425 Units 2,000 857

4 unchanged sentences

TOTAL INVESTMENTS $ 95,874 $ 104,919

The 1 and 3 month LIBOR rates were 0.45% and 0.96%, respectively, as of March 31, 2022.

The 1 and 3 month LIBOR rates were 1.79% and 2.29%, respectively, as of June 30, 2022.

The 1 and 3 month SOFR rates were 1.69% and 2.12%, respectively, as of June 30, 2022.

Represents amortized cost for debt securities and cost for equity investments.

6 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

44 unchanged sentences

Non-income producing security.

The following table includes selected balance sheet information for CION/EagleTree as of March 31, 2022 and December 31, 2021:

The following table includes selected balance sheet information for CION/EagleTree as of June 30, 2022 and December 31, 2021:

Selected Balance Sheet Information:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Investments, at fair value (amortized cost of $95,874 and $96,946, respectively) $ 104,919 $ 106,143

10 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

The following table includes selected statement of operations information for CION/EagleTree for the three months ended March 31, 2022 and for the period from December 21, 2021 (commencement of operations) through December 31, 2021:

The following table includes selected statement of operations information for CION/EagleTree for the three and six months ended June 30, 2022 and for the period from December 21, 2021 (commencement of operations) through December 31, 2021:

Selected Statement of Operations Information:

Three Months Ended March 31, 2022 Period From December 21, 2021 (Commencement of Operations) Through December 31, 2021

Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Period From December 21, 2021 (Commencement of Operations) Through December 31, 2021

Total revenues $ 1,839 $ 3,723 $ 688

Total expenses 2,802 5,522 800

Net change in unrealized appreciation on investments 542 9,197

Net change in unrealized (depreciation) appreciation on investments (695) (153) 9,197

Net (decrease) increase in net assets $ (1,658) $ (1,952) $ 9,085

19 unchanged sentences

On December 14, 2020, CION SOF repaid to MS all amounts outstanding under the SOF Credit Facility.

The Company did not record any dividend income from its equity interest in CION SOF for the year ended December 31, 2021 or the three months ended March 31, 2022.

The Company did not record any dividend income from its equity interest in CION SOF for the year ended December 31, 2021 or the six months ended June 30, 2022.

In accordance with ASU 2015-02, Consolidation , the Company determined that CION SOF was a VIE.

1 unchanged sentence

The Company's maximum exposure to losses from CION SOF was limited to its equity contribution to CION SOF.

The following table includes selected statement of operations information for CION SOF for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021:

Three Months Ended

March 31, Year Ended December 31,

The following table includes selected statement of operations information for CION SOF for the six months ended June 30, 2022 and 2021 and the year ended December 31, 2021:

Six Months Ended

June 30, Year Ended December 31,

Selected Statement of Operations Information:

5 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

Financing Arrangements

The following table presents summary information with respect to the Company’s outstanding financing arrangements as of March 31, 2022:

The following table presents summary information with respect to the Company’s outstanding financing arrangements as of June 30, 2022:

Financing Arrangement Type of Financing Arrangement Rate Amount Outstanding Amount Available Maturity Date

3 unchanged sentences

UBS Facility Repurchase Agreement L+3.375% 142,500 7,500 November 19, 2023

2022 More Term Loan Term Loan Facility Agreement SOFR+3.50% 50,000 — April 27, 2027

2021 More Term Loan(2) Term Loan Facility Agreement 5.20% 30,000 — September 30, 2024

$ 947,500 $ 82,500

(1) As of March 31, 2022, the fair value of the 2026 Notes was $125,000, which was based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of March 31, 2022.

(2) As of March 31, 2022, the fair value of the More Term Loan was $30,000, which was based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of March 31, 2022.

(1) As of June 30, 2022, the fair value of the 2026 Notes was $125,000, which was based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of June 30, 2022.

(2) As of June 30, 2022, the fair value of the 2021 More Term Loan was $30,000, which was based on a yield analysis and discount rate commensurate with the market yields for similar types of debt.

The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of June 30, 2022.

JPM Credit Facility

23 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

8 unchanged sentences

The non-usage fees, if any, are payable quarterly in arrears.

As of March 31, 2022 and December 31, 2021, the aggregate principal amount outstanding on the Third Amended JPM Credit Facility and the JPM First Amendment was $595,000 and $550,000, respectively.

As of June 30, 2022 and December 31, 2021, the aggregate principal amount outstanding on the Third Amended JPM Credit Facility and the JPM First Amendment was $600,000 and $550,000, respectively.

The Company contributed loans and other corporate debt securities to 34th Street in exchange for 100% of the membership interests of 34th Street, and may contribute additional loans and other corporate debt securities to 34th Street in the future.

2 unchanged sentences

In connection with the Third Amended JPM Credit Facility and the JPM First Amendment, 34th Street made certain representations and warranties and is required to comply with a borrowing base requirement, various covenants, reporting requirements and other customary requirements for similar facilities.

As of and for the three months ended March 31, 2022, 34th Street was in compliance with all covenants and reporting requirements.

Through March 31, 2022, the Company incurred debt issuance costs of $12,102 in connection with obtaining and amending the JPM Credit Facility, which were recorded as a direct reduction to the outstanding balance of the Third Amended JPM Credit Facility and the JPM First Amendment, which is included in the Company’s consolidated balance sheet as of March 31, 2022 and will amortize to interest expense over the term of the Third Amended JPM Credit Facility and the JPM First Amendment.

At March 31, 2022, the unamortized portion of the debt issuance costs was $4,859.

For the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021, the components of interest expense, average borrowings, and weighted average interest rate for the JPM First Amendment, the Third Amended JPM Credit Facility and the Second Amended JPM Credit Facility, as applicable, were as follows:

Three Months Ended March 31, Year Ended December 31,

As of and for the three months ended June 30, 2022, 34th Street was in compliance with all covenants and reporting requirements.

Through June 30, 2022, the Company incurred debt issuance costs of $12,102 in connection with obtaining and amending the JPM Credit Facility, which were recorded as a direct reduction to the outstanding balance of the Third Amended JPM Credit Facility and the JPM First Amendment, which is included in the Company’s consolidated balance sheet as of June 30, 2022 and will amortize to interest expense over the term of the Third Amended JPM Credit Facility and the JPM First Amendment.

At June 30, 2022, the unamortized portion of the debt issuance costs was $4,289.

For the three and six months ended June 30, 2022 and 2021 and the year ended December 31, 2021, the components of interest expense, average borrowings, and weighted average interest rate for the JPM First Amendment, the Third Amended JPM Credit Facility and the Second Amended JPM Credit Facility, as applicable, were as follows:

Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31,

2022 2021 2022 2021 2021

5 unchanged sentences

Average borrowings $ 598,571 $ 515,934 $ 575,083 $ 540,470 $ 549,110

(1) Includes the stated interest expense and non-usage fee on the unused portion of the JPM First Amendment, the Third Amended JPM redit Facility and the Second Amended JPM Credit Facility, as applicable, and is annualized for periods covering less than one year.

(1) Includes the stated interest expense and non-usage fee on the unused portion of the JPM First Amendment, the Third Amended JPM Credit Facility and the Second Amended JPM Credit Facility, as applicable, and is annualized for periods covering less than one year.

On February 11, 2021, the Company entered into a Note Purchase Agreement with certain purchasers, or the Note Purchase Agreement, in connection with the Company’s issuance of $125,000 aggregate principal amount of its 4.50% senior unsecured notes due in 2026, or the 2026 Notes.

2 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

7 unchanged sentences

The Note Purchase Agreement contains other terms and conditions, including, without limitation, affirmative and negative covenants such as (i) information reporting, (ii) maintenance of the Company’s status as a BDC, (iii) minimum shareholders’ equity of 60% of the Company’s net asset value as of the year ended December 31, 2020 plus 50% of the net cash proceeds of the sale of certain equity interests by the Company after February 11, 2021, if any, (iv) a minimum asset coverage ratio of not less than 150%, (v) a minimum interest coverage ratio of 1.25 to 1.00 and (vi) an unencumbered asset coverage ratio of 1.25 to 1.00, provided that (a) first lien senior secured loans and cash represent more than 65% of the total value of unencumbered assets used by the Company for purposes of the ratio and (b) equity interests or structured products in the aggregate represent less than 15% of the total value of unencumbered assets used by the Company for purposes of the ratio.

As of and for the three months ended March 31, 2022, the Company was in compliance with all covenants and reporting requirements.

As of and for the three months ended June 30, 2022, the Company was in compliance with all covenants and reporting requirements.

The Note Purchase Agreement also contains a “most favored lender” provision in favor of the purchasers in respect of any new unsecured credit facilities, loans or indebtedness in excess of $25,000 incurred by the Company, which indebtedness contains a financial covenant not contained in, or more restrictive against the Company than those contained, in the Note Purchase Agreement.

In addition, the Note Purchase Agreement contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under other indebtedness or derivative securities of the Company in an outstanding aggregate principal amount of at least $25,000, certain judgments and orders, and certain events of bankruptcy.

As of March 31, 2022, the aggregate principal amount of 2026 Notes outstanding was $125,000.

Through March 31, 2022, the Company incurred debt issuance costs of $2,669 in connection with issuing the 2026 Notes, which were recorded as a direct reduction to the outstanding balance of the 2026 Notes, which is included in the Company’s consolidated balance sheet as of March 31, 2022 and will amortize to interest expense over the term of the 2026 Notes.

At March 31, 2022, the unamortized portion of the debt issuance costs was $2,064.

For the three months ended March 31, 2022, for the period from February 11, 2021 through March 31, 2021 and for the period from February 11, 2021 through December 31, 2021, the components of interest expense, average borrowings, and weighted average interest rate for the 2026 Notes were as follows:

Three Months Ended March 31, 2022 For the Period From February 11, 2021 Through March 31, 2021 For the Period From February 11, 2021 Through December 31, 2021

As of June 30, 2022, the aggregate principal amount of 2026 Notes outstanding was $125,000.

Through June 30, 2022, the Company incurred debt issuance costs of $2,669 in connection with issuing the 2026 Notes, which were recorded as a direct reduction to the outstanding balance of the 2026 Notes, which is included in the Company’s consolidated balance sheet as of June 30, 2022 and will amortize to interest expense over the term of the 2026 Notes.

At June 30, 2022, the unamortized portion of the debt issuance costs was $1,931.

For the three months ended June 30, 2022 and 2021, for the six months ended June 30, 2022, for the period from February 11, 2021 through June 30, 2021 and for the period from February 11, 2021 through December 31, 2021, the components of interest expense, average borrowings, and weighted average interest rate for the 2026 Notes were as follows:

Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Six Months Ended June 30, 2022 For the Period From February 11, 2021 Through June 30, 2021 For the Period From February 11, 2021 Through December 31, 2021

Stated interest expense $ 1,422 $ 1,422 $ 2,828 $ 2,188 $ 5,062

6 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

14 unchanged sentences

and (c) the occurrence of certain bankruptcy and insolvency events with respect to Murray Hill Funding II or Murray Hill Funding.

As of and for the three months ended March 31, 2022, Murray Hill Funding II was in compliance with all covenants and reporting requirements.

As of and for the three months ended June 30, 2022, Murray Hill Funding II was in compliance with all covenants and reporting requirements.

Murray Hill Funding, in turn, entered into a repurchase transaction with UBS, pursuant to the terms of a Global Master Repurchase Agreement and the related Annex and Master Confirmation thereto, each dated May 19, 2017, or collectively, the UBS Facility.

17 unchanged sentences

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

11 unchanged sentences

The financing fee for the funded Class A-R Notes is equal to the three-month LIBOR plus a spread of 3.375% per year while the financing fee for the unfunded Class A-R Notes is equal to 0.75% per year.

Pursuant to the Amended UBS Facility, on July 1, 2021 and December 14, 2021, UBS purchased Class A-R Notes held by Murray Hill Funding for an aggregate purchase price equal to 100% of the principal amount of Class A-R Notes purchased, which was $21,000 and $25,000, respectively.

Pursuant to the Amended UBS Facility, on July 1, 2021, December 14, 2021 and April 19, 2022, UBS purchased Class A-R Notes held by Murray Hill Funding for an aggregate purchase price equal to 100% of the principal amount of Class A-R Notes purchased, which was $21,000, $25,000 and $17,500, respectively.

On August 20, 2021, Murray Hill Funding repurchased Class A-R Notes in the aggregate principal amount of $21,000 from UBS for an aggregate repurchase price of $21,000, which was then repaid by Murray Hill Funding II.

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and (e) the admission by Murray Hill Funding of its inability to, or its intention not to, perform any of its obligations under the Amended UBS Facility.

As of and for the three months ended March 31, 2022, Murray Hill Funding was in compliance with all covenants and reporting requirements.

As of and for the three months ended June 30, 2022, Murray Hill Funding was in compliance with all covenants and reporting requirements.

Murray Hill Funding paid an upfront fee and incurred certain other customary costs and expenses totaling $2,637 in connection with obtaining the Amended UBS Facility, which were recorded as a direct reduction to the outstanding balance of the Amended UBS Facility, which is included in the Company’s consolidated balance sheets and amortized to interest expense over the term of the Amended UBS Facility.

At March 31, 2022, all upfront fees and other expenses were fully amortized.

As of March 31, 2022, Notes in the aggregate principal amount of $125,000 had been purchased by Murray Hill Funding from Murray Hill Funding II and subsequently sold to UBS under the Amended UBS Facility for aggregate proceeds of $125,000.

At June 30, 2022, all upfront fees and other expenses were fully amortized.

As of June 30, 2022, Notes in the aggregate principal amount of $142,500 had been purchased by Murray Hill Funding from Murray Hill Funding II and subsequently sold to UBS under the Amended UBS Facility for aggregate proceeds of $142,500.

The carrying amount outstanding under the Amended UBS Facility approximates its fair value.

The Company funded each purchase of Notes by Murray Hill Funding through a capital contribution to Murray Hill Funding.

As of March 31, 2022, the amount due at maturity under the Amended UBS Facility was $125,000.

As of June 30, 2022, the amount due at maturity under the Amended UBS Facility was $142,500.

The Notes issued by Murray Hill Funding II and purchased by Murray Hill Funding eliminate in consolidation on the Company’s consolidated financial statements.

As of March 31, 2022, the fair value of assets held by Murray Hill Funding II was $232,772.

As of June 30, 2022, the fair value of assets held by Murray Hill Funding II was $259,277.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

Three Months Ended March 31, Year Ended December 31,

Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31,

2022 2021 2022 2021 2021

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2022 More Term Loan

On April 27, 2022, the Company entered into an Unsecured Term Loan Facility Agreement, or the More Term Loan Agreement, with More Provident Funds and Pension Ltd., or More Provident, as lender, which provided for an unsecured term loan to the Company in an aggregate principal amount of $50,000, or the 2022 More Term Loan.

On April 27, 2022, the Company drew down $50,000 of borrowings under the 2022 More Term Loan.

After the deduction of fees and other financing expenses, the Company received net borrowings of approximately $49,000, which it used for working capital and other general corporate purposes.

Advances under the 2022 More Term Loan bear interest at a floating rate equal to the three-month SOFR, plus a credit spread of 3.50% per year and subject to a 1.0% SOFR floor, payable quarterly in arrears.

Advances under the 2022 More Term Loan mature on April 27, 2027.

The Company has the right to, at its option, prepay all or any portion of advances then outstanding together with a prepayment fee equal to the higher of (i) zero, or (ii) the discounted present value of all remaining interest payments that would have been paid by the Company through the maturity date with respect to the principal amount of such advance that is to be prepaid or becomes due and payable pursuant to the More Term Loan Agreement.

The discounted present value portion of the prepayment fee is calculated by applying a discount rate on the same periodic basis as that on which interest on advances is payable equal to the three-month SOFR plus 2.00%.

Advances under the 2022 More Term Loan are general unsecured obligations of the Company that rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by certain of the Company’s subsidiaries, financing vehicles or similar facilities.

The More Term Loan Agreement contains other terms and conditions, including, without limitation, affirmative and negative covenants such as (i) information reporting, (ii) maintenance of the Company’s status as a BDC within the meaning of the 1940 Act, (iii) minimum shareholders’ equity of 60% of the Company’s net asset value as of the year ended December 31, 2021 plus 50% of the net cash proceeds of the sale of certain equity interests by the Company after April 27, 2022, if any, (iv) a minimum asset coverage ratio of not less than 150%, and (v) an unencumbered asset coverage ratio of 1.25 to 1.00, provided that (a) first lien senior secured loans and cash represent more than 65% of the total value of unencumbered assets used by the Company for purposes of the ratio and (b) equity interests or structured products in the aggregate represent less than 15% of the total value of unencumbered assets used by the Company for purposes of the ratio.

In addition, the More Term Loan Agreement contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under other indebtedness or derivative securities of the Company in an outstanding aggregate principal amount of at least $25,000, certain judgments and orders, and certain events of bankruptcy.

As of and for the three months ended June 30, 2022, the Company was in compliance with all covenants and reporting requirements.

Through June 30, 2022, the Company incurred debt is suance costs of $1,025 in connection with obtaining the 2022 More Term Loan, which were recorded as a direct reduction to the outstanding balance of the 2022 More Term Loan, which is included in the Company’s consolidated balance sheet as of June 30, 2022 and will amortize to interest expense over the term of the 2022 More Term Loan.

At June 30, 2022, the unamortized portion of the debt issuance costs was $988.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

For the period from April 27, 2022 through June 30, 2022 , the components of interest expense, average borrowings, and weighted average interest rate for the 2022 More Term Loan were as follows:

For the Period From April 27, 2022 Through June 30, 2022

Stated interest expense $ 410

Amortization of deferred financing costs 36

Total interest expense $ 446

Weighted average interest rate(1) 4.54 %

Average borrowings $ 50,000

(1) Includes the stated interest expense on the 2022 More Term Loan and is annualized for periods covering less than one year.

2021 More Term Loan

On April 14, 2021, the Company entered into an Unsecured Term Loan Facility Agreement, or the Term Loan Agreement, with More Provident Funds Ltd., or More, as lender.

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In addition, the Term Loan Agreement contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross default under other indebtedness or derivative securities of the Company in an outstanding aggregate principal amount of at least $25,000, certain judgments and orders, and certain events of bankruptcy.

As of and for the three months ended March 31, 2022, the Company was in compliance with all covenants and reporting requirements.

Through March 31, 2022 , the Company incurred debt issuance costs of $992 in connection with obtaining the More Term Loan, which were recorded as a direct reduction to the outstanding balance of the More Term Loan, which is included in the Company’s consolidated balance sheet as of March 31, 2022 and will amortize to interest expense over the term of the More Term Loan.

At March 31, 2022 , the unamortized portion of the debt issuance costs was $713.

As of and for the three months ended June 30, 2022, the Company was in compliance with all covenants and reporting requirements.

Through June 30, 2022 , the Company incurred debt issuance costs of $992 in connection with obtaining the 2021 More Term Loan, which were recorded as a direct reduction to the outstanding balance of the 2021 More Term Loan, which is included in the Company’s consolidated balance sheet as of June 30, 2022 and will amortize to interest expense over the term of the 2021 More Term Loan.

At June 30, 2022 , the unamortized portion of the debt issuance costs was $641.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

For the three months ended March 31, 2022 and for the period from April 14, 2021 through December 31, 2021, the components of interest expense, average borrowings, and weighted average interest rate for the More Term Loan were as follows:

Three Months Ended March 31, 2022 For the Period From April 14, 2021 Through December 31, 2021

For the three and six months ended June 30, 2022, for the period from April 14, 2021 through June 30, 2021 and for the period from April 14, 2021 through December 31, 2021, the components of interest expense, average borrowings, and weighted average interest rate for the 2021 More Term Loan were as follows:

Three Months Ended June 30, 2022 For the Period From April 14, 2021 Through June 30, 2021 Six Months Ended June 30, 2022 For the Period From April 14, 2021 Through December 31, 2021

Stated interest expense $ 394 $ 312 $ 784 $ 1,109

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Fair Value of Financial Instruments

The following table presents fair value measurements of the Company’s portfolio investments as of March 31, 2022 and December 31, 2021, according to the fair value hierarchy:

March 31, 2022(1) December 31, 2021(2)

The following table presents fair value measurements of the Company’s portfolio investments as of June 30, 2022 and December 31, 2021, according to the fair value hierarchy:

June 30, 2022(1) December 31, 2021(2)

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

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(2) Excludes the Company's $29,796 investment in CION/EagleTree, which is measured at NAV.

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended March 31, 2022 and 2021:

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three and six months ended June 30, 2022 and 2021:

Three Months Ended

March 31, 2022

June 30, 2022

Senior Secured First Lien Debt Senior Secured Second Lien Debt Collateralized Securities and Structured Products - Equity Unsecured Debt Equity Total

Beginning balance, December 31, 2021 $ 1,526,989 $ 38,583 $ 2,998 $ 26,616 $ 37,736 $ 1,632,922

Beginning balance, March 31, 2022 $ 1,597,364 $ 36,875 $ 2,632 $ 27,280 $ 42,405 $ 1,706,556

Investments purchased(2) 175,707 1,836 — 650 1,008 179,201

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Sales and principal repayments (93,196) (15,000) (854) — (503) (109,553)

Ending balance, March 31, 2022 $ 1,597,364 $ 36,875 $ 2,632 $ 27,280 $ 42,405 $ 1,706,556

Change in net unrealized (depreciation) appreciation on investments still held as of March 31, 2022(1) $ (12,710) $ (1,800) $ (176) $ 37 $ 3,544 $ (11,105)

Ending balance, June 30, 2022 $ 1,660,828 $ 27,086 $ 1,602 $ 27,994 $ 42,885 $ 1,760,395

Change in net unrealized (depreciation) appreciation on investments still held as of June 30, 2022(1) $ (21,519) $ 525 $ (176) $ 61 $ (229) $ (21,338)

(1) Included in net change in unrealized (depreciation) appreciation on investments in the consolidated statements of operations.

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Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

Six Months Ended

June 30, 2022

Senior Secured First Lien Debt Senior Secured Second Lien Debt Collateralized Securities and Structured Products - Equity Unsecured Debt Equity Total

Beginning balance, December 31, 2021 $ 1,526,989 $ 38,583 $ 2,998 $ 26,616 $ 37,736 $ 1,632,922

Investments purchased(2) 317,499 1,836 — 1,273 2,133 322,741

Net realized (loss) gain (107) 14 — — 204 111

Net change in unrealized (depreciation) appreciation (34,050) 1,221 (352) 98 3,315 (29,768)

Accretion of discount 4,535 432 — 7 — 4,974

Sales and principal repayments (154,038) (15,000) (1,044) — (503) (170,585)

Ending balance, June 30, 2022 $ 1,660,828 $ 27,086 $ 1,602 $ 27,994 $ 42,885 $ 1,760,395

Change in net unrealized (depreciation) appreciation on investments still held as of June 30, 2022(1) $ (34,992) $ 873 $ (352) $ 98 $ 3,315 $ (31,058)

(1) Included in net change in unrealized (depreciation) appreciation on investments in the consolidated statements of operations.

(2) Investments purchased includes PIK interest.

Three Months Ended

March 31, 2021

June 30, 2021

Senior Secured First Lien Debt Senior Secured Second Lien Debt Collateralized Securities and Structured Products - Equity Unsecured Debt Equity Total

Beginning balance, March 31, 2021 $ 1,255,426 $ 154,626 $ 13,840 $ 5,493 $ 91,409 $ 1,520,794

Investments purchased(2)(3) 224,407 614 — — 2,843 227,864

Net realized (loss) gain (341) — — — 805 464

Net change in unrealized appreciation (depreciation) 4,756 (877) 920 11 3,362 8,172

Accretion of discount 2,555 174 — 4 — 2,733

Sales and principal repayments(3) (79,579) (12,827) (665) — (6,062) (99,133)

Ending balance, June 30, 2021 $ 1,407,224 $ 141,710 $ 14,095 $ 5,508 $ 92,357 $ 1,660,894

Change in net unrealized appreciation (depreciation) on investments still held as of June 30, 2021(1) $ 6,482 $ (815) $ 920 $ 11 $ 4,076 $ 10,674

(1) Included in net change in unrealized (depreciation) appreciation on investments in the consolidated statements of operations.

(2) Investments purchased includes PIK interest.

(3) Includes non-cash restructured securities.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Six Months Ended

June 30, 2021

Senior Secured First Lien Debt Senior Secured Second Lien Debt Collateralized Securities and Structured Products - Equity Unsecured Debt Equity Total

Beginning balance, December 31, 2020 $ 1,223,268 $ 151,506 $ 12,131 $ 5,464 $ 75,913 $ 1,468,282

Investments purchased(2)(3) 413,433 1,641 — — 4,141 419,215

Net realized loss (1,073) — — — — (1,073)

Net realized (loss) gain (1,414) — — — 805 (609)

Net change in unrealized appreciation 19,674 1,053 2,782 37 17,560 41,106

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Sales and principal repayments(3) (253,294) (12,831) (818) — (6,062) (273,005)

Ending balance, March 31, 2021 $ 1,255,426 $ 154,626 $ 13,840 $ 5,493 $ 91,409 $ 1,520,794

Change in net unrealized depreciation on investments still held as of March 31, 2021(1) $ 12,423 $ 1,930 $ 1,862 $ 26 $ 14,198 $ 30,439

Ending balance, June 30, 2021 $ 1,407,224 $ 141,710 $ 14,095 $ 5,508 $ 92,357 $ 1,660,894

Change in net unrealized appreciation (depreciation) on investments still held as of June 30, 2021(1) $ 17,778 $ (218) $ 2,782 $ 37 $ 18,507 $ 38,886

(1) Included in net change in unrealized (depreciation) appreciation on investments in the consolidated statements of operations.

(2) Investments purchased includes PIK interest.

(3) Includes non-cash restructured securities.

Significant Unobservable Inputs

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of investments as of March 31, 2022 and December 31, 2021 were as follows:

March 31, 2022

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of investments as of June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022

Fair Value Valuation Techniques/

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17,245 Revenue Multiple 0.38x — 1.60x 1.34x

5,173 $ per kW $142 N/A

8,903 Other(2) Other(2) N/A N/A

Senior secured second lien debt 27,086 Discounted Cash Flow Discount Rates 10.3% — 20.5% 16.0%

12,094 Market Comparable Approach EBITDA Multiple 8.50x N/A

Collateralized securities and structured products - equity 1,602 Discounted Cash Flow Discount Rates 19.0% N/A

Unsecured debt 27,994 Discounted Cash Flow Discount Rates 13.4% — 16.0% 14.0%

Equity 18,662 Market Comparable Approach EBITDA Multiple 3.40x — 12.00x 7.54x

17,828 $ per kW $387.50 N/A

Equity 18,979 Market Comparable Approach $ per kW $387.5 N/A

13,273 Revenue Multiple 0.13x — 2.00x 0.96x

9,370 EBITDA Multiple 3.75x — 29.00x 9.98x

1,169 Broker Quotes Broker Quotes N/A N/A

94 Options Pricing Model Expected Volatility 61% — 100% 99%

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Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

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General and Administrative Expense

General and administrative expense consisted of the following items for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021:

Three Months Ended March 31, Year Ended December 31,

General and administrative expense consisted of the following items for the three and six months ended June 30, 2022 and 2021 and the year ended December 31, 2021:

Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31,

2022 2021 2022 2021 2021

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Valuation expense 212 269 391 521 904

Accounting and administrative costs 157 237 759

Director fees and expenses 161 111 315 214 516

Accounting and administrative costs 145 175 302 412 759

Printing and marketing expense 28 355 33 399 990

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Total general and administrative expense $ 1,712 $ 2,563 $ 3,934 $ 5,241 $ 9,805

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

June 30, 2022

(in thousands, except share and per share amounts)

Commitments and Contingencies

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However, the Company has not experienced claims or losses pursuant to these contracts and believes the risk of loss related to such indemnifications to be remote.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

As of March 31, 2022 and December 31, 2021, the Company’s unfunded commitments were as follows:

Unfunded Commitments March 31, 2022(1) December 31, 2021(1)

West Dermatology Management Holdings, LLC 6,255 6,308

As of June 30, 2022 and December 31, 2021, the Company’s unfunded commitments were as follows:

Unfunded Commitments June 30, 2022(1) December 31, 2021(1)

Service Compression, LLC 7,326 —

Critical Nurse Staffing, LLC 5,899 5,899

Instant Web, LLC 5,628 2,704

Mimeo.com, Inc.

Williams Industrial Services Group, Inc.

Thrill Holdings LLC 5,000 —

Novum Orthopedic Partners Management, LLC 4,891 —

Rogers Mechanical Contractors, LLC 4,808 4,808

MacNeill Pride Group Corp.

Trademark Global, LLC 4,615 4,615

Molded Devices, Inc.

Mimeo.com, Inc.

Homer City Holdings LLC 4,000 —

American Health Staffing Group, Inc.

Coyote Buyer, LLC 2,500 2,500

Molded Devices, Inc.

Tony's Finer Foods Enterprises, LLC 2,326 —

Moss Holding Company 2,232 2,232

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Foundation Consumer Healthcare, LLC 2,094 2,094

Bradshaw International Parent Corp.

MacNeill Pride Group Corp.

NWN Parent Holdings LLC 1,800 1,380

RumbleOn, Inc.

Coyote Buyer, LLC 1,750 2,500

Sleep Opco, LLC 1,750 1,750

Extreme Reach, Inc.

BDS Solutions Intermediateco, LLC 1,619 —

Bradshaw International Parent Corp.

Optio Rx, LLC 1,530 —

NWN Parent Holdings LLC 1,380 1,380

Anthem Sports & Entertainment Inc.

Homer City Holdings LLC 1,000 —

Invincible Boat Company LLC 798 798

RA Outdoors, LLC 1,049 1,049

Appalachian Resource Company, LLC 500 500

Lochner, Inc.

Invincible Boat Company LLC 559 798

BDS Solutions Intermediateco, LLC 474 —

American Teleconferencing Services, Ltd.

Genesis Healthcare, Inc.

West Dermatology Management Holdings, LLC — 6,308

Williams Industrial Services Group, Inc.

American Media, Inc.

Marble Point Credit Management LLC — 1,250

Appalachian Resource Company, LLC — 500

Total $ 96,129 $ 107,247

(1) Unless otherwise noted, the funding criteria for these unfunded commitments had not been met at the date indicated.

Unfunded commitments to provide funds to companies are not recorded on the Company’s consolidated balance sheets.

Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company.

The Company intends to use cash on hand, short-term investments, proceeds from borrowings, and other liquid assets to fund these commitments should the need arise.

For information on the companies to which the Company is committed to fund additional amounts as of March 31, 2022 and December 31, 2021, refer to the table above and the consolidated schedules of investments.

As of May 5, 2022, the Company was committed, upon the satisfaction of certain conditions, to fund an additi onal $105,147 .

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

Unfunded commitments to provide funds to companies are not recorded on the Company’s consolidated balance sheets.

Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company.

The Company intends to use cash on hand, short-term investments, proceeds from borrowings, and other liquid assets to fund these commitments should the need arise.

For information on the companies to which the Company is committed to fund additional amounts as of June 30, 2022 and December 31, 2021, refer to the table above and the consolidated schedules of investments.

As of August 4, 2022, the Company was committed, upon the satisfaction of certain conditions, to fund an additi onal $81,369 .

The Company will fund its unfunded commitments from the same sources it uses to fund its investment commitments that are funded at the time they are made (i.e., advances from its financing arrangements and/or cash flows from operations).

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Fee income consists of amendment fees, capital structuring and other fees, and administrative agent fees.

The following table summarizes the Company’s fee income for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021:

The following table summarizes the Company’s fee income for the three and six months ended June 30, 2022 and 2021 and the year ended December 31, 2021:

Three Months Ended

March 31, Year Ended

June 30, Six Months Ended

June 30, Year Ended

2022 2021 2022 2021 2021

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Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

Financial Highlights

The following is a schedule of financial highlights as of and for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021:

Three Months Ended

March 31, Year Ended

The following is a schedule of financial highlights as of and for the six months ended June 30, 2022 and 2021 and the year ended December 31, 2021:

Six Months Ended

June 30, Year Ended

2022 2021 2021

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Asset coverage ratio(10) 1.96 2.15 2.12

(1) The per share data for the three months ended March 31, 2022 and 2021 and the year ended December 31, 2021 was derived by using the weighted average shares of common stock outstanding during each period.

(1) The per share data for the six months ended June 30, 2022 and 2021 and the year ended December 31, 2021 was derived by using the weighted average shares of common stock outstanding during each period.

The share information utilized to determine per share data in this table has been retroactively adjusted to reflect the Reverse Stock Split discussed in Note 3.

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Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

June 30, 2022

(in thousands, except share and per share amounts)

(3) The continuous issuance of shares of common stock may have caused an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date.

The per share impact of the continuous issuance of shares of common stock was an increase to net asset value of less than $0.01 per share during the three months ended March 31, 2021 and the year ended December 31, 2021.

The per share impact of the continuous issuance of shares of common stock was an increase to net asset value of less than $0.01 per share during the six months ended June 30, 2021 and the year ended December 31, 2021.

The Company's follow-on continuous public offering ended on January 25, 2019.

(4) Repurchases of common stock may have caused an incremental decrease in net asset value per share due to the repurchase of shares at a price in excess of net asset value per share on each repurchase date.

The per share impact of repurchases of common stock was a decrease to net asset value of less than $0.01 per share during the three months ended March 31, 2021 and the year ended December 31, 2021.

The per share impact of repurchases of common stock was a decrease to net asset value of less than $0.01 per share during the six months ended June 30, 2021 and the year ended December 31, 2021.

(5) Shares of common stock outstanding has been retroactively adjusted to reflect the Reverse Stock Split discussed in Note 3.

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Total returns covering less than a full year are not annualized.

(7) Total investment return-market value for the three months ended March 31, 2022 was calculated by taking the change in the market price of the Company's common stock since the Company’s Listing on October 5, 2021, and including the impact of distributions reinvested in accordance with the Company’s New DRP.

(7) Total investment return-market value for the six months ended June 30, 2022 was calculated by taking the change in the market price of the Company's common stock since the first day of the period, and including the impact of distributions reinvested in accordance with the Company’s New DRP.

Total investment return-market value does not consider the effect of any sales commissions or charges that may be incurred in connection with the sale of shares of the Company’s common stock.

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(10) Asset coverage ratio is equal to (i) the sum of (a) net assets at the end of the period and (b) total senior securities outstanding at the end of the period (excluding unfunded commitments), divided by (ii) total senior securities outstanding at the end of the period.

Subsequent Event

2022 More Term Loan

On April 27, 2022, the Company drew down $50,000 of borrowings under the 2022 More Term Loan.

After the deduction of fees and other financing expenses, the Company received net borrowings of approximately $49,000, which it used for working capital and other general corporate purposes.

Advances under the 2022 More Term Loan mature on April 27, 2027.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

March 31, 2022

(in thousands, except share and per share amounts)

The More Term Loan Agreement contains other terms and conditions, including, without limitation, affirmative and negative covenants such as (i) information reporting, (ii) maintenance of the Company’s status as a BDC within the meaning of the Investment Company Act of 1940, as amended, (iii) minimum shareholders’ equity of 60% of the Company’s net asset value as of the year ended December 31, 2021 plus 50% of the net cash proceeds of the sale of certain equity interests by the Company after April 27, 2022, if any, (iv) a minimum asset coverage ratio of not less than 150%, and (v) an unencumbered asset coverage ratio of 1.25 to 1.00, provided that (a) first lien senior secured loans and cash represent more than 65% of the total value of unencumbered assets used by the Company for purposes of the ratio and (b) equity interests or structured products in the aggregate represent less than 15% of the total value of unencumbered assets used by the Company for purposes of the ratio.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements