Chicago Atlantic BDC, Inc. 10-K/A

Item 8. Financial Statements and Supplementary Data INDEX TO FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm (BDO USA, LLP, New York, NY, PCAOB ID #243) 94 Statements of Assets and Liabilities as of March 31, 2022 and March 31, 2021 95 Statements of Operations for the Year Ended March 31, 2022 and period from January 25, 2021 (Inception) through March 31, 2021 96 Statements of Changes in Net Assets for the Year Ended March 31, 2022 and period from January 25, 2021 (Inception) through March 31, 2021 97 Statements of Cash Flows for the Year Ended March 31, 2022 and period from January 25, 2021 (Inception) through March 31, 2021 98 Notes to Financial Statements 99 93 SILVER SPIKE INVESTMENT CORP. Shareholders and Board of Directors Silver Spike Investment Corp. New York, NY Opinion on the Financial Statements We have audited the accompanying statements of assets and liabilities of Silver Spike Investment Corp. (the “Company”), as of March 31, 2022 and 2021, the related statements of operations, changes in net assets, and cash flows for the year ended March 31, 2022 and for the period from January 25, 2021 (Inception) through March 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2022 and 2021, and the results of its operations, changes in its net assets, and its cash flows for the year ended March 31, 2022 and for the period from January 25, 2021 (Inception) through March 31, 2021 , in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ BDO USA, LLP We have served as the Company's auditor since 2021. New York, NY June 29, 2022 94 SILVER SPIKE INVESTMENT CORP. Statements of Assets and Liabilities March 31, 2022 March 31, 2021 ASSETS Cash & cash equivalents $ 84,766,060 $ - Prepaid expenses 256,512 - Interest receivable 9,215 - Deferred offering cost - 276,256 Total assets $ 85,031,787 $ 276,256 LIABILITIES Offering cost payable $ 264,581 $ 276,256 Audit fees payable 50,000 10,000 Administrator fees payable 47,151 - Organizational costs payable 34,168 149,715 Legal fees payable 33,983 - Director's fee payable 24,370 - Other payables 25,359 - Due to affiliate 85 - Total liabilities $ 479,697 $ 435,971 Commitments and contingencies (Note 6) NET ASSETS/(NET LIABILITIES) Common Stock, $0.01 par value, 100,000,000 shares authorized, 6,214,672 and 0 shares issued and outstanding as of March 31, 2022 and March 31, 2021, respectively $ 62,147 $ - Additional paid-in-capital 84,917,788 - Distributable earnings/(Accumulated losses) (427,845) (159,715) Total net assets/(net liabilities) $ 84,552,090 $ (159,715) NET ASSET VALUE PER SHARE $ 13.61 $ N/A 95 SILVER SPIKE INVESTMENT CORP. Statements of Operations Year ended March 31, 2022 For the period from January 25, 2021 (Inception) through March 31, 2021 INVESTMENT INCOME: Non-controlled/non-affiliate investment income: Interest income $ 10,073 $ - Total investment income: 10,073 - EXPENSES: Organizational expenses 328,002 149,715 Administrator fees 47,151 - Insurance expense 46,488 - Audit expense 40,000 10,000 Custodian fees 36,000 - Professional fees 34,920 - Legal expenses 34,069 - Other expense 6,808 - Total expenses 573,438 159,715 NET INVESTMENT INCOME (LOSS) (563,365) (159,715) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (563,365) $ (159,715) NET INVESTMENT INCOME PER SHARE - BASIC AND DILUTED $ (0.64) $ N/A NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC AND DILUTED $ (0.64) $ N/A WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED 877,409 N/A 96 SILVER SPIKE INVESTMENT CORP. Statements of Changes in Net Assets Common Stock Shares Par value Additional paid-in-capital Distributable Earnings/(Accumulated Loss) Total net assets/(net liabilities) Balance, January 25, 2021 (Inception) - $ - $ - $ - $ - Net increase (decrease) in net assets resulting from operations Net investment income (loss) - - - (159,715) (159,715) Net realized gain (loss) from investments - - - - - Net change in unrealized appreciation (depreciation) from investments - - - - - Capital Transactions Issuance of common stock - - - - - Effect of permanent adjustments - - - - - Balance, March 31, 2021 - $ - $ - $ (159,715) $ (159,715) Common Stock Shares Par Value Additional paid-in-capital Distributable Earnings/(Accumulated Loss) Total net assets/(net liabilities) Balance, March 31, 2021 - $ - $ - $ (159,715) $ (159,715) Net increase (decrease) in net assets resulting from operations Net investment income (loss) - - - (563,365) (563,365) Net realized gain (loss) from investments - - - - - Net change in unrealized appreciation (depreciation) from investments - - - - - Capital Transactions Issuance of common stock, net of offering costs of $1,690,184 6,214,672 62,147 85,213,023 - 85,275,170 Effect of permanent adjustments - - (295,235) 295,235 - Balance, March 31, 2022 6,214,672 $ 62,147 $ 84,917,788 $ (427,845) $ 84,552,090 97 SILVER SPIKE INVESTMENT CORP. Statements of Cash Flows Year ended March 31, 2022 For the period from January 25, 2021 (Inception) through March 31, 2021 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations $ (563,365) $ (159,715) Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by/(used in) operating activities: (Increase)/Decrease in operating assets: Prepaid expenses (256,512) - Interest receivable (9,215) - Deferred offering cost 276,256 (276,256) Increase/(Decrease) in operating liabilities: Organizational costs payable (115,547) 149,715 Offering cost payable (11,675) 276,256 Administrator fees payable 47,151 - Audit fees payable 40,000 10,000 Legal fees payable 33,983 - Director's fee payable 24,370 Other payables 25,359 - Due to affiliate 85 - Net cash provided by (used in) operating activities (509,110) - Cash flows from financing activities: Issuance of common stock, net of offering costs 85,275,170 - Net cash provided by (used in) financing activities 85,275,170 - Net increase (decrease) in cash and cash equivalents 84,766,060 - Cash and cash equivalents, beginning of year/period - - Cash and cash equivalents, end of year/period $ 84,766,060 $ - 98 SILVER SPIKE INVESTMENT CORP. Notes to Financial Statements NOTE 1 - ORGANIZATION Silver Spike Investment Corp. (an emerging growth company) (the “Company”) was formed on January 25, 2021 as a Maryland corporation structured as an externally managed, closed-end, non-diversified management investment company. The Company has elected to be treated as a business development company, or BDC, under the Investment Company Act of 1940, as amended (“1940 Act”). In addition, for U.S. federal income tax purposes the Company adopted an initial tax year end of December 31, 2021, and was taxed as a corporation for the tax period ending December 31, 2021. The Company intends to adopt the tax year end of March 31, 2022 and elect to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) for the tax period January 1, 2022 through March 31, 2022, as well as maintain such election in future taxable years. However, there is no guarantee that the Company will qualify to make such an election for any taxable year. The Company is managed by Silver Spike Capital, LLC ("SSC"), a registered investment advisor under the Investment Advisers Act of 1940 with the Securities and Exchange Commission. SSC has engaged SS&C Technologies, Inc and ALPS Fund Services, Inc. ("SS&C") to perform administrative services necessary for the Company to operate. The Company's investment objective is to maximize risk-adjusted returns on equity for its shareholders. The Company will seek to drive return on equity by generating current income from debt investments and capital appreciation from equity and equity-related investments. The Company intends to achieve its investment objective by investing primarily in secured debt, unsecured debt, equity warrants and direct equity investments in private leveraged middle-market cannabis companies and other companies in the health and wellness sector. The debt investments will often be secured by either a first or second priority lien on the assets of the portfolio company, can include either fixed or floating rate terms and will generally have a term of between three and six years from the original investment date. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Articles 6 and 12 of Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the financial statements have been made. Use of Estimates: The preparation of the financial statements in conformity with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the financial statements and accompanying notes. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions and conditions. Cash and Cash Equivalents: Cash and cash equivalents consist of funds deposited with financial institutions and short-term (maturity of 90 days or less) liquid investments and money market funds. Funds held in money market funds are considered level 1 in the fair value hierarchy in accordance with the Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurement ("ASC 820"). Cash held in demand deposit accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit. As of March 31, 2022 and 2021, cash and cash equivalents consisted of $84.8 million and nil, respectively, of which $84.8 million and nil, respectively, is held in the State Street Institutional U.S. Government Money Market Fund. Earnings per share: In accordance with the provisions of ASC Topic 260 – Earnings per Share (“ASC 260”), basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Other potentially dilutive common shares, and the related impact to earnings are considered when calculating earnings per share on a diluted basis. Interest income: Interest income on securities and debt investments are recorded on the accrual basis to the extent that such amounts are payable by issuers and are expected to be collected. When a debt security becomes 90 days or more past due, or if management otherwise does not expect that principal, interest, and other obligations due will be collected in full, the Company will generally place the debt security on non-accrual status and cease recognizing interest income on that debt security until all principal and interest due has been paid or the Company believes the borrower has demonstrated the ability to repay its current and future contractual obligations. Any uncollected interest is reversed from income in the period that collection of the interest receivable is determined to be doubtful. However, the Company may make exceptions to this policy if the investment has sufficient collateral value and is in the process of collection. As of March 31, 2022 and March 31, 2021, there were no loan investments in the portfolio to evaluate non-accrual status or accrual status. Interest income earned on the money market fund and money market deposit account was $10,073 and nil for the year ended March 31, 2022 and for the period from January 25 (Inception) through March 31, 2021, respectively. As of March 31, 2022 and March 31, 2021, $9,215 and nil, respectively were recorded as interest receivable. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. If at any point we believe paid-in-kind (“PIK”) interest is not expected to be realized, the investment generating PIK interest will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest are generally reversed through interest income. Non-accrual loans are restored to accrual status when past-due principal and interest are paid current and, in management’s judgment, are likely to remain current. Management may make exceptions to this treatment and determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. 99 SILVER SPIKE INVESTMENT CORP. Notes to Financial Statements – (continued) Income Taxes: The Company adopted an initial tax year end of December 31, 2021 and was taxed as a corporation for U.S. federal income tax purposes for the tax period ending December 31, 2021. The Company intends to adopt the tax year end of March 31, 2022 and elect to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code for the tax period January 1, 2022 through March 31, 2022, as well as maintain such election in future taxable years. As a RIC, the Company would not be subject to federal income tax on the portion of its taxable income and gains distributed currently to its stockholders as a dividend. The Company intends to distribute between 90% and 100% of its taxable income and gains, within the Subchapter M rules, and thus the Company anticipates that it will not incur any federal or state income tax at the RIC level. As a RIC, the Company would also be subject to a 4% federal excise tax based on distribution requirements of its taxable income on a calendar year basis for ordinary income and on a 12 month basis ending October 31 for capital gains. The Company anticipates timely distribution of its taxable income within the tax rules. However, the Company may incur a federal excise tax in future years. However, there is no guarantee that the Company will qualify to make such an election for any taxable year. The Company evaluates tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority in accordance with ASC Topic 740, Income Taxes (“ASC 740”). Tax benefits of positions not deemed to meet the more-likely-than-not threshold, or uncertain tax positions, would be recorded as tax expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. Based on the analysis of the Company’s tax position, the Company has no uncertain tax positions that met the recognition or measurement criteria as of March 31, 2022. The Company does not anticipate any significant increase or decrease in unrecognized tax benefits for the next twelve months. All of the Company’s tax returns remain subject to examination by U.S. federal and state tax authorities. Organization Expenses and Offering Costs: Organizational expenses Costs associated with the organization of the Company are expensed as incurred. These expenses consist primarily of legal fees and other costs of organizing the Company. For the year ended March 31, 2022 and for the period from January 25, 2021 (Inception) through March 31, 2021, the Company incurred organizational expenses of $328,002 and $149,715, respectively, of which $34,168 and $149,715 of organizational costs remained payable on the Statements of Assets and Liabilities as of March 31, 2022 and March 31, 2021, respectively. Offering costs These costs consist primarily of legal fees and other costs incurred in connection with the Company's share offerings, the preparation of the Company's registration statement, and registration fees. Costs associated with the offering of common shares of the Company are capitalized as deferred offering and are included in deferred offering costs in the Statements of Assets and Liabilities. Costs were charged to capital upon the completion of the Company’s public offering. For the year ending March 31, 2022 and the period from January 25, 2021 (Inception) through March 31, 2021 offering costs of $1,413,928 and $276,256, respectively, were charged to capital, of which $264,581 and $276,256 of offering costs remained payable as of March 31, 2022 and March 31, 2021, respectively. New Accounting Standards: Management does not believe any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements. NOTE 3 – RELATED PARTY TRANSACTIONS Pursuant to the investment advisory agreement between the Company and SSC (the “Investment Advisory Agreement”), fees payable to SSC are equal to (a) a base management fee of 1.75% of the value of the Company’s gross assets (i.e., total assets held before deduction of any liabilities), which includes investments acquired with the use of leverage and excludes cash and cash equivalents and (b) an incentive fee based on the Company’s performance. The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20% of the Company’s “Pre-Incentive Fee Net Investment Income” for the quarter, subject to a preferred return, or “hurdle,” of 1.75% per quarter (7% annualized), and a “catch-up” feature. The second part is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement) and equals 20% of the Company’s realized capital gains on a cumulative basis from inception through the end of the fiscal year, if any, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fee. Pursuant to the administration agreement between the Company and SSC (the "Administration Agreement"), the Company shall reimburse SSC for the costs and expenses incurred by SSC in performing its obligations, including but not limited to maintaining and keeping all books and records and providing personnel and facilities. This includes costs and expenses incurred by SSC in connection with the delegation of its obligations to a sub-administrator. The Company is not responsible for the compensation of its employees and overhead expenses of SSC. For the periods ended March 31, 2021 and March 31, 2022, the Advisor has waived any expense reimbursement, other than those associated with the delegation of its obligations to a sub-administrator. Due to affiliate in the accompanying Statements of Assets and Liabilities in the amount of $85 and nil as of March 31, 2022 and March 31, 2021, respectively, are due to SSC for expenses it paid, on our behalf. As of March 31, 2022, the total paid to SSC for reimbursement was $387,373. Subsequent to March 31, 2022, all expenses have been reimbursed. SSC was the seed investor of the Company and provided initial funding to the Company by purchasing approximately $63 million of the Company’s common stock in the Company’s initial public offering. SSC provided this “seed capital” to the Company for the purpose of facilitating the launch and initial operation of the Company, as opposed to for long term investment purposes. Although SSC is subject to a 180-day lock-up agreement, SSC does not expect to hold the Company’s common stock indefinitely, and may sell the Company’s common stock at a future point in time. In order for SSC’s sales of the shares of the Company not to be deemed to have been made “on the basis of” material nonpublic information, such sales may be made pursuant to a pre-approved trading plan that complies with Rule 10b5-1 under the Exchange Act and that may obligate SSC to make recurring sales of the Company’s common stock on a periodic basis. Sales of substantial amounts of the Company’s common stock, including by SSC or other large stockholders, 100 SILVER SPIKE INVESTMENT CORP. Notes to Financial Statements – (continued) or the availability of such common stock for sale, could adversely affect the prevailing market prices for the Company’s common stock. If this occurs and continues for a sustained period of time, it could impair the Company’s ability to raise additional capital through the sale of securities, should the Company desire to do so. SSC holds approximately 72% of the Company’s voting stock and has the ability to exercise substantial control over all corporate actions requiring stockholder approval, including the election and removal of directors, certain amendments of the Company’s charter, the Company’s ability to issue its common stock at a price below NAV per share, and the approval of any merger or other extraordinary corporate action. SSC has agreed to absorb $2.07M, the cost of the sales load (i.e, underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock. NOTE 4 – SHARE DATA In connection with its formation, the Company authorized 100,000,000 shares of its common stock with a par value of $0.01 per share. SSIC sold 6,214,672 common stock shares in exchange for approximately $87 million as of March 31, 2022. NOTE 5 – INDEMNIFICATION Under the Company’s organizational documents, the Company’s officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Company. In addition, in the normal course of business the Company enters into contracts that contain a variety of representations which provide general indemnifications. The Company's maximum exposure under these agreements cannot be known; however, the Company expects any risk of loss to be remote. NOTE 6 – COMMITMENTS AND CONTINGENCIES Commitments and contingencies have been reviewed and the Company has identified no commitments or contingencies as of March 31, 2022 and March 31, 2021. NOTE 7 – EARNINGS PER SHARE The following table sets forth the computation of the weighted average basic and diluted net increase (decrease) in net assets per share from operations for the year ended March 31, 2022 and the period from January 25, 2021 (Inception) through March 31, 2021: Year ended March 31, 2022 For the period from January 25, 2021 (Inception) to March 31, 2021 Net increase (decrease) in net assets resulting from operations $ (563,365) $ (159,715) Weighted Average Shares Outstanding 877,409 - Net increase (decrease) in net assets resulting from operations per common share - basic and diluted $ (0.64) $ N/A NOTE 8 – INCOME TAXES The Company adopted an initial tax year end of December 31, 2021, and was taxed as a corporation for the tax period ending December 31, 2021. The Company intends to adopt a tax year end of March 31, 2022 and elect to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code for the tax period January 1, 2022 through March 31, 2022, as well as maintain such election in future taxable years. However, there is no guarantee that the Company will qualify to make such an election for any taxable year. As a RIC, the Company generally will not pay corporate-level income tax on the portion of its taxable income distributed to stockholders, generally required to be at least 90% of its investment company taxable income (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). The amount to be paid out as a distribution is determined by the Company’s Board of Directors each quarter and is based upon the annual earnings estimated by the management of the Company. To the extent the Company’s earnings fall below the amount of dividend distributions declared, however, a portion of the total amount of the Company’s distributions for the fiscal year may be deemed a return of capital for tax purposes to the Company’s stockholders. Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary in nature. Permanent differences are reclassified among the capital accounts in the financial statements to reflect their appropriate tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. Also, recent tax legislation requires that income be recognized for tax purposes no later than when recognized for financial reporting purposes. During the period ended March 31, 2022, the Company reclassified for book purposes amounts arising from permanent book to tax differences primarily related to net operating loss forfeiture for income tax purposes as follows: 101 SILVER SPIKE INVESTMENT CORP. Notes to Financial Statements – (continued) Year Ended March 31, 2022 Increase/(decrease) in additional paid-in-capital $ (295,235) Decrease/(increase) in accumulated losses 295,235 The Company has no capital losses, which can be used to offset future capital gains. Any of these losses are permitted to carry forward for an indefinite period. For income tax purposes distributions paid to shareholders are reported as ordinary income, return of capital, long-term capital gains, or a combination thereof. There were no distributions paid for the period from January 25, 2021 (inception) through March 31, 2021 and for the year ended March 31, 2022. As of March 31, 2022, the components of accumulated losses on a tax basis detailed below differ from the amounts reflected in the Company’s Statements of Assets and Liabilities by temporary book or tax differences primarily arising from the tax treatment of organizational costs. Year Ended March 31, 2022 Other temporary differences $ (427,845) Total (427,845) The following table sets forth the tax cost basis and the estimated aggregate gross unrealized appreciation and depreciation from investments for federal income tax purposes (in thousands): Year Ended March 31, 2022 Tax Cost of Investments $ 84,766,060 Unrealized appreciation - Unrealized depreciation - Net unrealized appreciation (depreciation) from investments - In order for the Company not to be subject to federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its ordinary income (taking into account certain deferrals and elections), (ii) 98.2% of its net capital gains from the current year and (iii) any undistributed ordinary income and net capital gains from preceding year on which it paid corporate-level U.S. federal income tax. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If the Company chooses to do so, this generally would increase expenses and reduce the amount available to be distributed to stockholders. The Company will accrue excise tax on estimated undistributed taxable income as required on an annual basis. 102 SILVER SPIKE INVESTMENT CORP. Notes to Financial Statements – (continued) NOTE 9 – FINANCIAL HIGHLIGHTS We were formed on January 25, 2021 and the effective date of our registration statement was February 3, 2022. Prior to February 3, 2022, we had no operations, except for matters relating to our formation and organization as a BDC. As a result, there are no significant financial results for comparative purposes. The following presents financial highlights for the period from February 3, 2022 to March 31, 2022: Period from February 3, 2022 to March 31, 2022 Per share data: Net asset value at beginning of period $ 14.00 Net investment income (loss) (1) (0.07) Net increase (decrease) in net assets resulting from operations (0.07) Offering costs (2) (0.27) Permanent tax adjustments (2) (0.05) Net asset value at end of year $ 13.61 Net assets at end of year $ 84,552,090 Shares outstanding at end of year 6,214,672 Average Net Assets (5) $ 83,301,328 Per share market value at end of year $ 13.30 Total return based on market value (3) (5.00)% Total return based on average net asset value (3) (2.79)% Ratio/Supplemental data: Ratio of expenses to average net assets 0.22% Ratio of net investment income (loss) to average net assets (4) (0.20)% Portfolio turnover N/A (1) The per share data was derived by adding (deducting) the increase (decrease) per share in undistributed net investment income during the period presented to (from) dividends from net investment income per share during the periods presented. (2) The per share data was derived by using the shares outstanding during the period presented. SSC has absorbed the cost of the sales load (i.e, underwriting discounts and commissions) incurred by the Company in connection with the initial public offering of its common stock. (3) Total return based on market value is based on the change in market price per share between the effectiveness and ending market prices per share in each period and assumes that common stock dividends are reinvested in accordance with our common stock dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per share between the effectiveness and ending net asset values per share in each period and assumes that dividends are reinvested in accordance with our common stock dividend reinvestment plan. For periods less than a year, total return is not annualized. (4) Ratio is not annualized. (5) Weighted average net assets are calculated for the period from February 3, 2022 to March 31, 2022. NOTE 10 – SUBSEQUENT EVENTS The Company's management evaluated subsequent events through the date on which the financial statements were issued. Other than the item listed below, there have been no subsequent events that occurred during such period that have required adjustment or disclosure in the financial statements. On May 27, 2022, we funded a $21 million debt investment, net of fees, to a new portfolio company, Shryne Group, Inc. 103 SILVER SPIKE INVESTMENT CORP. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.