What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-03 compared with 2021-11-03 · 1123 added, 1017 removed, 1410 unchanged (60% of the section changed)

3 unchanged sentences

(in thousands, except share amounts)

September 30,

March 31, 2022

Investments at fair value:

32 unchanged sentences

Three months ended

Nine months ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

March 31, 2022

March 31, 2021

INVESTMENT INCOME:

14 unchanged sentences

Net investment income

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, CASH EQUIVALENTS AND DEBT:

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:

Net realized gain (loss) on investments and cash equivalents (companies less than 5%

Net change in unrealized gain (loss) on investments, cash equivalents and net change in unrealized

(gain) loss on debt:

Net change in unrealized gain (loss) on investments and cash equivalents:

Companies less than 5% owned

Companies more than 25% owned

Net change in unrealized gain (loss) on investments, cash equivalents and debt

Net realized and unrealized gain (loss) on investments, cash equivalents and debt

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

EARNINGS (LOSS) PER SHARE (see note 5)

Net change in unrealized gain (loss) on investments and cash equivalents

Net realized and unrealized gain (loss) on investments and cash equivalents

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

EARNINGS PER SHARE (see note 5)

See notes to consolidated financial statements.

3 unchanged sentences

Three months ended

Nine months ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

March 31, 2022

March 31, 2021

Increase (decrease) in net assets resulting from operations:

2 unchanged sentences

Net change in unrealized gain (loss)

Net increase (decrease) in net assets resulting from operations

Net increase in net assets resulting from operations

Distributions to stockholders:

1 unchanged sentence

Capital transactions (see note 12) :

Net increase (decrease) in net assets resulting from capital transactions

Net increase in net assets resulting from capital transactions

Total increase (decrease) in net assets

2 unchanged sentences

Capital stock activity (see note 12) :

Net increase (decrease)from capital stock activity

Net increase from capital stock activity

See notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine months ended

September 30, 2021

September 30, 2020

Three months ended

March 31, 2022

March 31, 2021

Cash Flows from Operating Activities:

Net increase (decrease) in net assets resulting from operations

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net

cash provided by (used in) operating activities:

Net increase in net assets resulting from operations

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided

by (used in) operating activities:

Net realized (gain) loss on investments and cash equivalents

Net change in unrealized (gain) loss on investments

Net change in unrealized loss on debt

(Increase) decrease in operating assets:

17 unchanged sentences

Other liabilities and accrued expenses

Net Cash Provided by Operating Activities

Deferred financing costs

Net Cash Provided by (Used in) Operating Activities

Cash Flows from Financing Activities:

Cash distributions paid

Deferred financing costs

Proceeds from issuance of unsecured debt

Proceeds from unsecured borrowings

Proceeds from secured borrowings

Repayment of secured borrowings

Net Cash Used in Financing Activities

NET INCREASE IN CASH AND CASH EQUIVALENTS

Net Cash Provided by (Used in) Financing Activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

5 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)

September 30, 2021

(in thousands, except share/unit amounts)

March 31, 2022

thousands, except share/unit amounts)

Senior Secured Loans 109.8%

2 unchanged sentences

Health Care Providers & Services

Alteon Health, LLC

Health Care Providers & Services

American Teleconferencing Services, Ltd.**

11 unchanged sentences

Diversified Consumer Services

Community Brands ParentCo, LLC (f/k/a Ministry Brands)

Enhanced Permanent Capital, LLC(3)

3 unchanged sentences

Inszone Mid, LLC

Ivy Fertility Services, LLC

Health Care Providers & Services

Kid Distro Holdings, LLC (Distro Kid)

3 unchanged sentences

Wireless Telecommunication Services

Legility, LLC

Commercial Services & Supplies

Logix Holding Company, LLC

13 unchanged sentences

Life Sciences Tools & Services

Smile Doctors LLC

Personal Products

Stryten Energy LLC

2 unchanged sentences

Health Care Equipment & Supplies

The Childrens Place, Inc.(3)

Specialty Retail

Ultimate Baked Goods Midco LLC (Rise Baking)

4 unchanged sentences

Second Lien Asset-Based Senior Secured Loans

ACRES Commercial Mortgage, LLC

Diversified Financial Services

Varilease Finance, Inc.

Multi-Sector Holdings

Total Second Lien Asset-Based Senior Secured Loans

Second Lien Bank Debt/Senior Secured Loans

7 unchanged sentences

Pharmaceuticals

Apollo Endosurgery, Inc.

Health Care Equipment & Supplies

Arcutis Biotherapeutics, Inc.(3)

Pharamceuticals

Ardelyx, Inc.

2 unchanged sentences

Pharmaceuticals

BridgeBio Pharma, Inc.(3)

Biotechnology

Centrexion Therapeutics, Inc.

17 unchanged sentences

Health Care Providers & Services

Vapotherm, Inc.(3)

Health Care Equipment & Supplies

Total First Lien Life Science Senior Secured Loans

3 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2021

(in thousands, except share/unit amounts)

March 31, 2022

thousands, except share/unit amounts)

Equipment Financing 31.5%

2 unchanged sentences

3/1/2025-12/1/2026

Air Methods Corporation (10)

11/3/2026-11/23/2026

AmeraMex International, Inc.

2 unchanged sentences

Oil, Gas & Consumable Fuels

3/1/2022-11/1/2022

Boart Longyear Company (10)

1 unchanged sentence

7/1/2024-1/1/2026

C&H Paving, Inc.

Construction & Engineering

1/1/2024-11/1/2024

Capital City Jet Center, Inc.

10/4/2023-6/22/26

Central Freight Lines, Inc.

Champion Air, LLC (10)

10 unchanged sentences

8/1/2022-4/27/2025

Family First Freight, LLC (10)

First American Commercial Bancorp, Inc.

Diversified Financial Services

11/1/2026-4/1/2027

First National Capital, LLC (10)

Diversified Financial Services

Freightsol LLC (10)

5 unchanged sentences

Haljoe Coaches USA, LLC (10)

Hawkeye Contracting Company, LLC (10)

Construction & Engineering

HTI Logistics Corporation (10)

11 unchanged sentences

Consumer Finance

8/20/2024-10/1/2024

Mountain Air Helicopters, Inc.

Commercial Services & Supplies

4/30/2022-2/28/2025

Rane Light Metal Castings Inc.

7 unchanged sentences

Diversified Consumer Services

South Texas Oilfield Solutions, LLC (14)

Energy Equipment & Services

9/1/2022-7/1/2023

SLR Equipment Finance(2)

Multi-Sector Holdings

ST Coaches, LLC (10)

2 unchanged sentences

Commercial Services & Supplies

10/1/2024-10/1/2025

Star Coaches Inc.

Sturgeon Services International Inc.

Energy Equipment & Services

Superior Transportation, Inc.

Tailwinds, LLC (10)

Air Freight & Logistics

8/1/2024-10/16/2025

The Smedley Company & Smedley Services, Inc.

Commercial Services & Supplies

Trinity Equipment Rentals, Inc.

Commercial Services & Supplies

11/1/2024-12/1/2026

Thora Capital, LLC (10)

Trolleys, Inc.

12 unchanged sentences

Preferred Equity 0.5%

SOAGG LLC (2)(3)(4)

Aerospace & Defense

SOINT, LLC (2)(3)(4)

4 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2021

(in thousands, except share/unit amounts)

March 31, 2022

thousands, except share/unit amounts)

Common Equity/Equity Interests/Warrants55.0%

26 unchanged sentences

Diversified Financial Services

Vapotherm, Inc.

Health Care Equipment & Supplies

Venus Concept Ltd.

9 unchanged sentences

Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank

Offered Rate (LIBOR), and which typically reset monthly, quarterly or semi-annually.

For each debt investment we have provided the current rate of interest, or in the case of leases the current implied yield, in effect as of

September 30, 2021.

Offered Rate (LIBOR) or Secured Overnight Financing Rate (SOFR), and which typically reset monthly, quarterly or semi-annually.

For each debt investment we have provided the current rate of interest, or in the case of leases

the current implied yield, in effect as of March 31, 2022.

Denotes investments in which we are deemed to exercise a controlling influence over the management or policies

of a company, as defined in the Investment Company Act of 1940 (1940 Act), due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the investment.

Transactions during the nine months ended September 30, 2021 in these controlled investments are as follows:

of a company, as defined in the Investment Company Act of 1940, as amended (1940 Act), due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of the

Transactions during the three months ended March 31, 2022 in these controlled investments are as follows:

Name of Issuer

3 unchanged sentences

Fair Value at

September 30, 2021

AviatorCap SII, LLC

March 31, 2022

Equipment Operating Leases, LLC

15 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2021

(in thousands)

March 31, 2022

Indicates assets that the Company believes may not represent qualifying assets under

Section 55(a) of the Investment Company Act of 1940 (1940 Act), as amended.

If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making

follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act.

As of September 30, 2021, on a fair value

basis, non-qualifying assets in the portfolio represented 19.3% of the total assets of the Company.

The Companys investments in SOAGG, LLC and SOINT, LLC include a two and one dollar investment in common

shares, respectively.

Section 55(a) of the 1940 Act.

If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or

could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act.

As of March 31, 2022, on a fair value basis, non-qualifying assets in the portfolio represented

23.9% of the total assets of the Company.

The Companys investment in SOINT, LLC include a one dollar investment in common shares.

Kingsbridge Holdings, LLC is held through KBH Topco LLC, a Delaware corporation.

10 unchanged sentences

Floating rate instruments accrue interest at a predetermined spread relative to an index, typically the LIBOR,

or PRIME rate.

These instruments are often subject to a LIBOR or PRIME rate floor.

SOFR or PRIME rate.

These instruments are often subject to a LIBOR, SOFR or PRIME rate floor.

Denotes a Level 1 investment.

7 unchanged sentences

co-borrowers.

Indicates an investment that is held by the Company through its wholly-owned consolidated financing subsidiary

NEFPASS SPV, LLC (the NEFPASS SPV).

Such investments are pledged as collateral under the NEFPASS SPV, LLC Revolving Credit Facility (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if

any, of the Company.

Spread is 6.00% Cash / 2.00% PIK.

Spread is 2.50% Cash / 11.50% PIK.

Spread is 5.00% Cash / 1.00% PIK.

AmeriMark Interactive, LLC, AmeriMark Direct LLC, AmeriMark Intermediate Sub, Inc., L.T.D.

2 unchanged sentences

and Amerimark Intermediate Holdings, LLC are each co-Borrowers.

Spread is 6.00% Cash / 2.50% PIK.

Spread is 2.50% Cash / 12.50% PIK.

Spread is 5.50% Cash / 0.50% PIK.

Non-income producing security.

3 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

September 30, 2021

(in thousands)

March 31, 2022

Industry Classification

1 unchanged sentence

Investments (at fair value) as

of September 30,

of March 31, 2022

Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment

4 unchanged sentences

Health Care Equipment & Supplies

Personal Products

Commercial Services & Supplies

Biotechnology

Wireless Telecommunication Services

Specialty Retail

Diversified Consumer Services

Communications Equipment

Internet & Catalog Retail

Capital Markets

Personal Products

Diversified Consumer Services

Commercial Services & Supplies

Auto Parts & Equipment

Internet & Catalog Retail

Packaged Foods & Meats

Life Sciences Tools & Services

Communications Equipment

Specialty Retail

Auto Components

Health Care Technology

Biotechnology

Aerospace & Defense

Metals & Mining

Aerospace & Defense

Consumer Finance

Construction & Engineering

Energy Equipment & Services

Air Freight & Logistics

Oil, Gas & Consumable Fuels

Hotels, Restaurants & Leisure

Consumer Finance

Oil, Gas & Consumable Fuels

Containers & Packaging

Energy Equipment & Services

Total Investments

3 unchanged sentences

December 31, 2021

(in thousands)

(in thousands, except share/unit amounts)

Senior Secured Loans 111.5%

6 unchanged sentences

Communications Equipment

American Teleconferencing Services, Ltd.**

Communications Equipment

AmeriMark Intermediate Holdings, LLC(14)

Internet & Catalog Retail

Atria Wealth Solutions, Inc

Diversified Financial Services

AviatorCap SII, LLC (2)

Aerospace & Defense

Basic Fun, Inc

Specialty Retail

CC SAG Holdings Corp.

(Spectrum Automotive)

Diversified Consumer Services

Community Brands ParentCo, LLC (f/k/a Ministry Brands)

Enhanced Permanent Capital, LLC(3)

Capital Markets

Foundation Consumer Brands, LLC

Personal Products

Inszone Mid, LLC

Ivy Fertility Services, LLC

Health Care Providers & Services

Kid Distro Holdings, LLC (Distro Kid)

Kingsbridge Holdings, LLC(2)

2 unchanged sentences

Wireless Telecommunication Services

Legility, LLC

Commercial Services & Supplies

Logix Holding Company, LLC

Communications Equipment

Maurices, Incorporated

Specialty Retail

MMIT Holdings, LLC

NAC Holdings Corporation (Jaguar)

One Touch Direct, LLC

Commercial Services & Supplies

Pet Holdings ULC & Pet Supermarket, Inc.

Specialty Retail

PhyNet Dermatology LLC

4 unchanged sentences

Health Care Providers & Services

Sentry Data Systems, Inc.

Smile Doctors LLC

Personal Products

Soleo Health Holdings, Inc.

Health Care Providers & Services

The Childrens Place, Inc.(3)

Specialty Retail

Life Sciences Tools & Services

Stryten Energy LLC

Auto Parts & Equipment

SunMed Group Holdings, LLC

Health Care Equipment & Supplies

Ultimate Baked Goods Midco LLC (Rise Baking)

Packaged Foods & Meats

USR Parent, Inc.

2 unchanged sentences

Second Lien Asset-Based Senior Secured Loans

Greystone Select Holdings LLC & Greystone & Co., Inc.

Thrifts & Mortgage Finance

ACRES Commercial Mortgage, LLC

Diversified Financial Services

Varilease Finance, Inc.

10 unchanged sentences

Pharmaceuticals

Apollo Endosurgery, Inc.

Health Care Equipment & Supplies

Arcutis Biotherapeutics, Inc.(3)

Pharamceuticals

Ardelyx, Inc.

2 unchanged sentences

Pharmaceuticals

Cardiva Medical, Inc.

Health Care Equipment & Supplies

BridgeBio Pharma, Inc.(3)

Biotechnology

Centrexion Therapeutics, Inc.

4 unchanged sentences

Health Care Equipment & Supplies

GenMark Diagnostics, Inc.

Health Care Providers & Services

Kindred Biosciences, Inc.

Pharmaceuticals

Health Care Technology

Neuronetics, Inc.

2 unchanged sentences

Health Care Equipment & Supplies

PQ Bypass, Inc.

Health Care Equipment & Supplies

Rezolute, Inc

Biotechnology

Rubius Therapeutics, Inc.

2 unchanged sentences

Pharmaceuticals

SI-BONE, Inc.

Health Care Equipment & Supplies

SOC Telemed, Inc.

Health Care Providers & Services

Total First Lien Life Science Senior Secured Loans

6 unchanged sentences

Equipment Financing 32.5%

Aero Operating LLC (10)

Commercial Services & Supplies

3/1/2025-12/1/2026

Air Methods Corporation (10)

11/3/2026-11/23/2026

AmeraMex International, Inc.

5 unchanged sentences

Metals & Mining

C&H Paving, Inc.

Construction & Engineering

7/1/2024-1/1/2026

1 unchanged sentence

10/4/2023-6/22/26

Central Freight Lines, Inc.

Champion Air, LLC (10)

Easton Sales and Rentals, LLC (10)

Commercial Services & Supplies

Clubcorp Holdings, Inc.

Hotels, Restaurants & Leisure

6/1/2025-1/1/2027

Dongwon Autopart Technology Inc.

Auto Components

EasyPak, LLC (10)

Containers & Packaging

Environmental Protection & Improvement Company, LLC (10)

2 unchanged sentences

8/1/2022-4/27/2025

EquipmentShare.com, Inc.

Commercial Services & Supplies

Family First Freight, LLC (10)

2/1/2022-5/1/2023

First American Commercial Bancorp, Inc.

Diversified Financial Services

First National Capital, LLC (10)

Diversified Financial Services

Freightsol LLC (10)

3 unchanged sentences

Georgia Jet, Inc.

Globecomm Systems Inc.

Wireless Telecommunication Services

GMT Corporation (10)

Haljoe Coaches USA, LLC (10)

7/1/2022-7/1/2024

Hawkeye Contracting Company, LLC (10)

Construction & Engineering

HTI Logistics Corporation (10)

1 unchanged sentence

5/1/2024-9/1/2025

Interstate NDT, Inc.

7/1/2023-10/25/2023

ISR Holdings, LLC (10)

Commercial Services & Supplies

JP Motorsports, Inc.

International Automotive Components Group, North America, Inc.

Auto Components

Kool Pak, LLC (10)

Lineal Industries, Inc.

Construction & Engineering

Loyer Capital LLC (2)(12)

1 unchanged sentence

5/16/24-9/25/24

Lux Credit Consultants, LLC (10)

12/1/2024-12/1/2025

Lux Vending, LLC (10)

Consumer Finance

8/20/2024-10/1/2024

Mountain Air Helicopters, Inc.

Commercial Services & Supplies

4/30/2022-2/28/2025

NEF Holdings, LLC (2)

Multi-Sector Holdings

Rane Light Metal Castings Inc.

3 unchanged sentences

Commercial Services & Supplies

4/1/2021-9/1/2022

Royal Coach Lines, Inc.(10)

9 unchanged sentences

Commercial Services & Supplies

10/1/2024-10/1/2025

Star Coaches Inc.

1 unchanged sentence

Energy Equipment & Services

Sun-Tech Leasing of Texas, L.P.

Superior Transportation, Inc.

4/1/2022-8/1/2024

Tailwinds, LLC (10)

4 unchanged sentences

10/29/2023-2/10/2024

Thora Capital, LLC (10)

Trinity Equipment Rentals, Inc.

Commercial Services & Supplies

11/1/2024-12/1/2026

Trolleys, Inc.

Up Trucking Services, LLC (10)

4/1/2022-8/1/2024

Warrior Crane Services, LLC (10)

6 unchanged sentences

Energy Equipment & Services

NEF Holdings, LLC Equity Interests (2)(9)

SLR Equipment Finance Equity Interests (2)(9)*

Multi-Sector Holdings

14 unchanged sentences

Pharmaceuticals

B Riley Financial Inc.

Research & Consulting Services

CardioFocus, Inc.

4 unchanged sentences

Health Care Equipment & Supplies

Crystal Financial LLC (2)(3)

Diversified Financial Services

Delphinus Medical Technologies, Inc.

4 unchanged sentences

Multi-Sector Holdings

PQ Bypass, Inc.

Health Care Equipment & Supplies

RD Holdco Inc.

7 unchanged sentences

Diversified Consumer Services

Scynexis, Inc.

Pharmaceuticals

Senseonics Holdings, Inc.

Health Care Equipment & Supplies

Sunesis Pharmaceuticals, Inc.

Pharmaceuticals

SLR Credit Solutions (2)(3)

Diversified Financial Services

Venus Concept Ltd.

13 unchanged sentences

Denotes investments in which we are deemed to exercise a controlling influence over the management or policies

Transactions during the year ended December 31, 2021 in these controlled investments are as follows:

2 unchanged sentences

December 31, 2020

Interest/Dividend

/Other Income

Fair Value at

1 unchanged sentence

AviatorCap SII, LLC

Crystal Financial LLC

Equipment Operating Leases, LLC

Kingsbridge Holdings, LLC (debt)

Kingsbridge Holdings, LLC (equity)

Kingsbridge Holdings, LLC

KBH Topco, LLC (Kingsbridge)

Loyer Capital LLC

NEF Holdings, LLC (equity)

NEF Holdings, LLC (debt)

RD Holdco Inc.

5 unchanged sentences

Rug Doctor LLC

SLR Credit Solutions

SLR Equipment Finance (equity)

SLR Equipment Finance (debt)

See notes to consolidated financial statements.

4 unchanged sentences

Indicates assets that the Company believes may not represent qualifying assets under

Section 55(a) of the Investment Company Act of 1940 (1940 Act), as amended.

If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making

follow-on investments in existing portfolio companies or could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act.

As of December 31, 2020, on a fair value

basis, non-qualifying assets in the portfolio represented 25.9% of the total assets of the Company.

Section 55(a) of the 1940 Act.

If we fail to invest a sufficient portion of our assets in qualifying assets, we could be prevented from making follow-on investments in existing portfolio companies or

could be required to dispose of investments at inappropriate times in order to comply with the 1940 Act.

As of December 31, 2021, on a fair value basis, non-qualifying assets in the portfolio represented

23.1% of the total assets of the Company.

The Companys investments in SOAGG, LLC and SOINT, LLC include a two and one dollar investment in common

15 unchanged sentences

Denotes a Level 1 investment.

NEF Holdings, LLC is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS LLC,

a wholly-owned consolidated subsidiary.

SLR Equipment Finance is held through NEFCORP LLC, a wholly-owned consolidated taxable subsidiary and NEFPASS

LLC, a wholly-owned consolidated subsidiary.

Indicates an investment that is wholly held by the Company through NEFPASS LLC.

Interest is paid in kind (PIK).

Denotes a subsidiary of NEF Holdings, LLC.

Denotes a subsidiary of SLR Equipment Finance.

OmniGuide Holdings, Inc., Domain Surgical, Inc.

1 unchanged sentence

co-borrowers.

Indicates an investment that is held by the Company through its wholly-owned consolidated financing subsidiary

NEFPASS SPV, LLC (the NEFPASS SPV).

Such investments are pledged as collateral under the NEFPASS SPV, LLC Revolving Credit Facility (see Note 7 to the consolidated financial statements) and are not generally available to creditors, if

any, of the Company.

AmeriMark Interactive, LLC, AmeriMark Direct LLC, AmeriMark Intermediate Sub, Inc., L.T.D.

Commodities LLC,

Leonards Healthcare Corp.

and Amerimark Intermediate Holdings, LLC are each co-Borrowers.

Spread is 6.00% Cash / 2.00% PIK.

Kindred Biosciences, Inc., KindredBio Equine, Inc.

and Centaur Biopharmaceutical Services, Inc.

are co-borrowers.

Spread is 2.50% Cash / 12.50% PIK.

Spread is 5.50% Cash / 0.50% PIK.

Non-income producing security.

Investment is on non-accrual status.

See notes to consolidated financial statements.

7 unchanged sentences

of December 31, 2021

Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, NEF Holdings, LLC, Equipment Operating

Leases, LLC and Loyer Capital LLC)

Diversified Financial Services (includes Crystal Financial LLC)

Multi-Sector Holdings (includes Kingsbridge Holdings, LLC, SLR Equipment Finance, Equipment

Operating Leases, LLC and Loyer Capital LLC)

Diversified Financial Services (includes SLR Credit Solutions)

Health Care Providers & Services

1 unchanged sentence

Health Care Equipment & Supplies

Commercial Services & Supplies

Specialty Retail

Biotechnology

Wireless Telecommunication Services

Communications Equipment

Thrifts & Mortgage Finance

Personal Products

Diversified Consumer Services

Commercial Services & Supplies

Capital Markets

Auto Parts & Equipment

Internet & Catalog Retail

Packaged Foods & Meats

Life Sciences Tools & Services

Communications Equipment

Specialty Retail

Auto Components

Health Care Technology

Aerospace & Defense

Energy Equipment & Services

Metals & Mining

Construction & Engineering

Oil, Gas & Consumable Fuels

Personal Products

Hotels, Restaurants & Leisure

Consumer Finance

Air Freight & Logistics

Research & Consulting Services

Health Care Technology

Energy Equipment & Services

Oil, Gas & Consumable Fuels

Construction & Engineering

Containers & Packaging

Total Investments

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2021

(in thousands, except share amounts)

Solar Capital LLC,

a Maryland limited liability company, was formed in February 2007 and commenced operations on March 13, 2007 with initial capital of $1,200,000 of which 47.04% was funded by affiliated parties.

Immediately prior to our initial public offering, through a series of transactions, SLR Investment Corp.

(f/k/a Solar Capital Ltd.) (the

Company, we, us or our), merged with Solar Capital LLC, leaving SLR Investment Corp.

as the surviving entity (the Merger).

March 31, 2022

thousands, except share amounts)

Solar Capital LLC, a Maryland limited liability company, was formed in February 2007 and commenced operations on March 13, 2007 with

initial capital of $1,200,000 of which 47.04% was funded by affiliated parties.

Immediately prior to our initial public offering, through

a series of transactions, SLR Investment Corp.

(the Company, we, us or our), merged with Solar Capital LLC, leaving SLR Investment Corp.

as the surviving entity (the

Pre-IPO Merger).

SLR Investment Corp.

issued an aggregate of approximately

26.65 million shares of common stock and $125,000 in senior unsecured notes to the existing Solar Capital LLC unit holders in connection with the Merger.

issued an aggregate of approximately 26.65 million shares of common stock and $125,000 in senior unsecured notes to the existing Solar Capital LLC unit

holders in connection with the Pre-IPO Merger.

SLR Investment Corp.

had no assets or operations prior to completion of the Merger and as

a result, the historical books and records of Solar Capital LLC have become the books and records of the surviving entity.

The number of shares used to calculate weighted average shares for use in computations on a per share basis have been

decreased retroactively by a factor of approximately 0.4022 for all periods prior to February 9, 2010.

This factor represents the effective impact of the reduction in shares resulting from the Merger.

had no assets or operations prior to completion of the Pre-IPO Merger and as a result, the historical

books and records of Solar Capital LLC have become the books and records of the surviving entity.

The number of shares used to calculate weighted average shares for use in computations on a per share basis have been decreased retroactively by a

factor of approximately 0.4022 for all periods prior to February 9, 2010.

This factor represents the effective impact of the reduction in shares resulting from the Pre-IPO Merger.

SLR Investment Corp., a Maryland corporation formed in November 2007, is a closed-end, externally

3 unchanged sentences

federal income tax purposes, the Company has elected to

be treated, and intend to qualify annually, as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code).

be treated, and intends to qualify annually, as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code).

On February 9, 2010, the Company priced its initial public offering, selling 5.68 million shares of common stock, including the

5 unchanged sentences

public companies that are thinly traded.

On December 1, 2021, we entered into an Agreement and Plan of Merger (the Merger

Agreement), with SLR Senior Investment Corp., a Maryland corporation (SUNS), Solstice Merger Sub, Inc., a Maryland corporation and our wholly-owned subsidiary (Merger Sub), and, solely for the limited purposes set forth

therein, SLR Capital Partners, LLC (the Investment Adviser).

The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into SUNS, with SUNS continuing as the surviving

company and as SUNSs wholly-owned subsidiary (the Merger,) and, immediately thereafter, SUNS will merge with and into us, with us continuing as the surviving company (together with the Merger, the Mergers).

and 15 for additional information.

Significant Accounting Policies

17 unchanged sentences

financial statements, have been included.

The significant accounting policies consistently followed by the Company are:

Investment transactions are accounted for on the trade date;

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

Under procedures established by our board of directors (the Board), we value investments, including

March 31, 2022

thousands, except share amounts)

The significant accounting policies consistently followed by the Company are:

Investment transactions are accounted for on the trade date;

Under procedures established by the board of directors (the Board), we value investments, including

certain senior secured debt, subordinated debt and other debt securities with maturities greater than 60 days, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value).

7 unchanged sentences

Debt investments with maturities of 60 days or less shall each be valued at cost plus accreted discount, or minus

amortized premium, which is expected to approximate fair value, unless such valuation, in the judgment of SLR Capital Partners, LLC (f/k/a Solar Capital Partners, LLC) (the Investment Adviser), does not represent fair value, in which

case such investments shall be valued at fair value as determined in good faith by or under the direction of our Board.

Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as

determined in good faith by or under the direction of our Board.

Such determination of fair values involves subjective judgments and estimates.

With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent

fair value, our Board has approved a multi-step valuation process each quarter, as described below:

amortized premium, which is expected to approximate fair value, unless such valuation, in the judgment of the Investment Adviser, does not represent fair value, in which case such investments shall be valued at fair value as determined in good faith

by or under the direction of the Board.

Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board.

Such determination of

fair values involves subjective judgments and estimates.

With respect to investments for which market quotations are

not readily available or when such market quotations are deemed not to represent fair value, the Board has approved a multi-step valuation process each quarter, as described below:

our quarterly valuation process begins with each portfolio company or investment being initially valued by the

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preliminary valuation conclusions are then documented and discussed with senior management of the Investment

independent valuation firms engaged by our Board conduct independent appraisals and review the Investment

independent valuation firms engaged by the Board conduct independent appraisals and review the Investment

Advisers preliminary valuations and make their own independent assessment for all material assets;

17 unchanged sentences

input in the valuation process.

For the nine months ended September 30, 2021, there has been no change to the Companys valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

ASC Topic 820 classifies the inputs used to measure these fair values into the following hierarchy:

Unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the Company

at the measurement date.

For the three months ended March 31, 2022, there has been no change to the Companys valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or

similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

March 31, 2022

thousands, except share amounts)

ASC Topic 820 classifies the inputs used to measure these fair values into the following hierarchy:

Unadjusted quoted prices in active markets for identical assets or liabilities, accessible by the

Company at the measurement date.

Quoted prices for similar assets or liabilities in active markets, or

quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Unobservable inputs for the asset or liability.

50 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

March 31, 2022

thousands, except share amounts)

The Company may enter into forward exchange contracts in order to hedge against foreign currency risk.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

The Company has

an Advisory Agreement with the Investment Adviser, under which the Investment Adviser will manage the day-to-day operations of, and provide investment advisory services

to the Company.

For providing these services, the Investment Adviser receives a fee from the Company, consisting of two componentsa base management fee and a performance-based incentive fee.

The base management fee is determined by taking the

average value of the Companys gross assets at the end of the two most recently completed calendar quarters calculated at an annual rate of 1.75% on gross assets up to 200% of the Companys total net assets as of the immediately

preceding quarter end and 1.00% on gross assets that exceed 200% of the Companys total net assets as of the immediately preceding quarter end.

For purposes of computing the base management fee, gross assets exclude temporary assets acquired at

the end of each fiscal quarter for purposes of preserving investment flexibility in the next fiscal quarter.

March 31, 2022

thousands, except share amounts)

The Company has an investment advisory and management agreement (the Advisory Agreement) with the Investment Adviser, under which

the Investment Adviser will manage the day-to-day operations of, and provide investment advisory services to the Company.

For providing these services, the Investment

Adviser receives a fee from the Company, consisting of two componentsa base management fee and a performance-based incentive fee.

The base management fee is determined by taking the average value of the Companys gross assets at the end

of the two most recently completed calendar quarters calculated at an annual rate of 1.75% on gross assets up to 200% of the Companys total net assets as of the immediately preceding quarter end and 1.00% on gross assets that exceed 200%

of the Companys total net assets as of the immediately preceding quarter end.

For purposes of computing the base management fee, gross assets exclude temporary assets acquired at the end of each fiscal quarter for purposes of preserving

investment flexibility in the next fiscal quarter.

Temporary assets include, but are not limited to, U.S.

treasury bills, other short-term U.S.

government or government agency securities,

repurchase agreements or cash borrowings.

government or government agency securities, repurchase agreements or cash borrowings.

The performance-based incentive fee has two parts, as follows:

one part is calculated and

payable quarterly in arrears based on the Companys pre-incentive fee net investment income for the immediately preceding calendar quarter.

For this purpose,

pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment,

origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus the Companys operating expenses for the quarter (including the base management fee, any

expenses payable under the Administration Agreement, and any interest expense and distributions paid on any issued and outstanding preferred stock, but excluding the performance-based incentive fee).

Pre-incentive fee net investment income does not include any realized capital gains or losses, or unrealized capital appreciation or depreciation.

Pre-incentive fee net

investment income, expressed as a rate of return on the value of the Companys net assets at the end of the immediately preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7% annualized).

The Company pays the

Investment Adviser a performance-based incentive fee with respect to the Companys pre-incentive fee net investment income in each calendar quarter as follows:

(1) no performance-based incentive fee

in any calendar quarter in which the Companys pre-incentive fee net investment income does not exceed the hurdle rate;

(2) 100% of the Companys

pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less

than 2.1875% in any calendar quarter;

one part is calculated and payable quarterly in arrears based on the

Companys pre-incentive fee net investment income for the immediately preceding calendar quarter.

For this purpose, pre-incentive fee net investment income means

interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from

portfolio companies) accrued during the calendar quarter, minus the Companys operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement, and any interest expense and

distributions paid on any issued and outstanding preferred stock, but excluding the performance-based incentive fee).

Pre-incentive fee net investment income does not include any realized capital gains or

losses, or unrealized capital appreciation or depreciation.

Pre-incentive fee net investment income, expressed as a rate of return on the value of the Companys net assets at the end of the immediately

preceding calendar quarter, is compared to the hurdle rate of 1.75% per quarter (7% annualized).

The Company pays the Investment Adviser a performance-based incentive fee with respect to the Companys

pre-incentive fee net investment income in each calendar quarter as follows:

(1) no performance-based incentive fee in any calendar quarter in which the Companys

pre-incentive fee net investment income does not exceed the hurdle rate;

(2) 100% of the Companys pre-incentive fee net investment income with respect to that

portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.1875% in any calendar quarter;

and (3) 20% of the amount of the Companys pre-incentive fee net investment income, if any, that exceeds 2.1875% in any calendar quarter.

These calculations are

appropriately pro-rated for any period of less than three months.

The second part of the

performance-based incentive fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Advisory Agreement, as of the termination date), and will equal 20% of the Companys cumulative realized

capital gains less cumulative realized capital losses, unrealized capital depreciation (unrealized depreciation on a gross investment-by-investment basis at the end of

each calendar year) and all net capital gains upon which prior performance-based capital gains incentive fee payments were previously made to the Investment Adviser.

For financial statement purposes, the second part of the performance-based

incentive fee is accrued based upon 20% of cumulative net realized gains and net unrealized capital appreciation.

No accrual was required for the three and nine months ended September 30, 2021 and 2020.

For the three and nine months ended September 30, 2021, the Company recognized $7,142 and $20,842, respectively, in base management fees

and $698 and $8,444, respectively, in performance-based incentive fees.

For the three and nine months ended September 30, 2020, the Company recognized $6,176 and $18,416, respectively, in base management fees and $0 and $1,480, respectively, in

performance-based incentive fees.

The Company has also entered into an Administration Agreement with SLR Capital Management, LLC (f/k/a

Solar Capital Management, LLC) (the Administrator) under which the Administrator provides administrative services to the Company.

For providing these services, facilities and personnel, the Company reimburses the Administrator for the

Companys allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including rent.

The Administrator will also provide, on the Companys behalf,

managerial assistance to those portfolio companies to which the Company is required to provide such assistance.

These calculations are appropriately pro-rated for any period of less than three

The second part of the performance-based incentive fee is determined and payable in arrears as of the end of each calendar year

(or upon termination of the Advisory Agreement, as of the termination date), and will equal 20% of the Companys cumulative realized capital gains less cumulative realized capital losses, unrealized capital depreciation (unrealized depreciation

on a gross investment-by-investment basis at the end of each calendar year) and all net capital gains upon which prior performance-based capital gains incentive fee

payments were previously made to the Investment Adviser.

For financial statement purposes, the second part of the performance-based incentive fee is accrued based upon 20% of cumulative net realized gains and net unrealized capital appreciation.

accrual was required for the three months ended March 31, 2022 and 2021.

For the three months ended March 31, 2022 and 2021,

the Company recognized $7,216 and $6,810, respectively, in base management fees and $0 and $3,867, respectively, in performance-based incentive fees.

The Company has also entered into an Administration Agreement with SLR Capital Management, LLC (the Administrator) under which the

Administrator provides administrative services to the Company.

For providing these services, facilities and personnel, the Company reimburses the Administrator for the Companys allocable portion of overhead and other expenses incurred by the

Administrator in performing its obligations under the Administration Agreement, including rent.

The Administrator will also provide, on the Companys behalf, managerial assistance to those portfolio companies to which the Company is required to

provide such assistance.

The Company typically reimburses the Administrator on a quarterly basis.

For the three and nine months ended September 30, 2021, the Company recognized expenses under the Administration Agreement of $1,435 and

$4,170 respectively.

For the three and nine months ended September 30, 2020, the Company recognized expenses under the Administration Agreement of $1,572 and $3,867, respectively.

No managerial assistance fees were accrued or collected for the

three and nine months ended September 30, 2021 and 2020.

For the three months ended

March 31, 2022 and 2021, the Company recognized expenses under the Administration Agreement of $1,183 and $1,360 respectively.

No managerial assistance fees were accrued or collected for the three months ended March 31, 2022 and 2021.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

March 31, 2022

thousands, except share amounts)

Net Asset Value Per Share

At September 30, 2021, the Companys total net assets and net asset value per share were $853,490 and $20.20, respectively.

compares to total net assets and net asset value per share at December 31, 2020 of $852,023 and $20.16, respectively.

(Loss) Per Share

The following table sets forth the computation of basic and diluted net increase (decrease) in net assets per share

resulting from operations, pursuant to ASC 260-10, for the three and nine months ended September 30, 2021 and 2020:

Three months ended

September 30,

Nine months ended September 30,

Earnings (loss) per share (basic & diluted)

Numeratornet increase (decrease) in net assets resulting from operations:

At March 31, 2022, the Companys total net assets and net asset value per share were $826,417 and $19.56, respectively.

This compares

to total net assets and net asset value per share at December 31, 2021 of $842,281 and $19.93, respectively.

Earnings Per Share

The following table sets forth the computation of basic and diluted net increase in net assets per share resulting from operations,

pursuant to ASC 260-10, for the three months ended March 31, 2022 and 2021:

Three months ended March 31,

Earnings per share (basic & diluted)

Numeratornet increase in net assets resulting from operations:

Denominatorweighted average shares:

Earnings (loss) per share:

Earnings per share:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between

33 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, as of September 30, 2021

and December 31, 2020:

March 31, 2022

thousands, except share amounts)

The following tables present the balances of assets and liabilities measured at fair value on a

recurring basis, as of March 31, 2022 and December 31, 2021:

Fair Value Measurements

As of September 30, 2021

As of March 31, 2022

Senior Secured Loans

14 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

The following tables provide a summary of the changes in fair value of Level 3 assets and liabilities for the three and nine months ended

September 30, 2021, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at September 30, 2021:

March 31, 2022

thousands, except share amounts)

The following tables provide a summary of the changes in fair value of Level 3 assets and

liabilities for the three months ended March 31, 2022, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at March 31, 2022:

Fair Value Measurements Using Level 3 Inputs

2 unchanged sentences

Common Equity/

Fair value, June 30, 2021

Total gains or losses included in earnings:

Net realized loss

Net change in unrealized gain (loss)

Purchase of investment securities

Proceeds from dispositions of investment securities

Transfers in/out of Level 3

Fair value, September 30, 2021

Unrealized losses for the period relating to those Level 3 assets that were still held by the

Company at the end of the period:

Net change in unrealized gain (loss)

Senior Secured

Preferred Equity

Common Equity/

Fair value, December 31, 2021

Total gains or losses included in earnings:

Net realized gain

Net realized gain (loss)

Net change in unrealized gain (loss)

2 unchanged sentences

Transfers in/out of Level 3

Fair value, September 30, 2021

Fair value, March 31, 2022

Unrealized losses for the period relating to those Level 3 assets that were still held by the

1 unchanged sentence

Net change in unrealized gain (loss)

On February 17, 2021, the Company exercised its warrants in Senseonics Holdings, Inc., receiving shares in

the common stock of Senseonics Holdings, Inc.

The common stock of Senseonics Holdings, Inc.

is publicly traded, so this position is considered to be a Level 1 asset.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

The following table shows a reconciliation of the beginning and ending balances for fair valued liabilities measured using significant

unobservable inputs (Level 3) for the three and nine months ended September 30, 2021:

2022 Unsecured Notes

The following table shows a reconciliation of the beginning and ending balances for fair valued liabilities

measured using significant unobservable inputs (Level 3) for the three months ended March 31, 2022:

2022 Unsecured Notes and Unfunded Commitments

For the three months ended

September 30, 2021

Beginning fair value

Net realized (gain) loss

Net change in unrealized (gain) loss

Transfers in/out of Level 3

Ending fair value

2022 Unsecured Notes

For the nine months ended

September 30, 2021

March 31, 2022

Beginning fair value

5 unchanged sentences

accordance with ASC 825-10.

On September 30, 2021, there were borrowings of $150,000 on the 2022 Unsecured Notes.

The following table provides a summary of the changes in fair value of Level 3 assets for the year ended December 31, 2020, as well

as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2020:

On March 31, 2022, there were borrowings of $150,000 on the 2022 Unsecured Notes.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2022

thousands, except share amounts)

The following table provides a summary of the changes in fair value of Level 3 assets for the

year ended December 31, 2021, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets still held at December 31, 2021:

Fair Value Measurements Using Level 3 Inputs

4 unchanged sentences

Total gains or losses included in earnings:

Net realized loss

Net realized gain (loss)

Net change in unrealized gain (loss)

5 unchanged sentences

held by the Company at the end of the period:

Net change in unrealized loss

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

Net change in unrealized gain (loss)

On February 17, 2021, the Company exercised its warrants in Senseonics Holdings, Inc., receiving shares in

the common stock of Senseonics Holdings, Inc.

The common stock of Senseonics Holdings, Inc.

is publicly traded, so this position is considered to be a Level 1 asset.

The following table shows a reconciliation of the beginning and ending balances for fair valued liabilities measured using significant

11 unchanged sentences

On December 31, 2021, there were borrowings of $150,000 on the 2022 Unsecured Notes.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2022

thousands, except share amounts)

Quantitative Information about Level 3 Fair Value Measurements

9 unchanged sentences

enterprise values, returns on equity and earnings before income taxes, depreciation and amortization (EBITDA) multiples of similar companies, and comparable market transactions for equity securities.

Quantitative information about the Companys Level 3 asset and liability fair value measurements as of September 30, 2021 is

Quantitative information about the Companys Level 3 asset and liability fair value measurements as of March 31, 2022 is

summarized in the table below:

Fair Value at

September 30, 2021

March 31, 2022

Principal Valuation

13 unchanged sentences

4.1% 13.3% (9.5%)

4.6% - 4.6% (4.6%)

Preferred Equity

16 unchanged sentences

EBITDA multiple.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

Quantitative information about the Companys Level 3 asset and liability fair value measurements as of December 31, 2020 is

summarized in the table below:

Quantitative information about the Companys Level 3 asset and liability fair value

measurements as of December 31, 2021 is summarized in the table below:

Fair Value at

6 unchanged sentences

Income Approach

Market Multiple (1)

Comparable Multiple

4.0% 19.6% (8.7%)

2.0x-3.0x(2.5x)/2.0x-3.0x(2.5x)

Equipment Financing

17 unchanged sentences

2.2% 4.6% (4.5%)

Includes $675 of investments valued using a weighted valuation approach, $492 of investments valued using a

Black-Scholes model, $6,442 of investments valued using an EBITDA multiple and $136,596 of investments which, due to the proximity of the transaction relative to the measurement date, were valued using the cost of the investments.

Significant increases or decreases in any of the above unobservable inputs in isolation, including unobservable inputs

used in deriving bid-ask spreads, if applicable, could result in significantly lower or higher fair value measurements for such assets and liabilities.

Generally, an increase in market yields or decrease in

EBITDA multiples may result in a decrease in the fair value of certain of the Companys investments.

Our debt obligations consisted of the following as of September 30, 2021 and December 31, 2020:

September 30, 2021

Investments are valued using a

sum-of-the parts analysis, using expected EBITDA multiples (2x-3x) for certain segments of the business and expected revenue

multiples (2x-3x) for certain segments of the business.

Includes $403 of investments valued using a Black-Scholes model and $151,212 of investments valued using an

EBITDA multiple.

Significant increases or decreases in any of the above unobservable inputs in isolation, including

unobservable inputs used in deriving bid-ask spreads, if applicable, could result in significantly lower or higher fair value measurements for such assets and liabilities.

Generally, an increase in market

yields or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Companys investments.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2022

thousands, except share amounts)

Our debt obligations consisted of the following as of March 31, 2022 and December 31, 2021:

March 31, 2022

December 31, 2021

2 unchanged sentences

Credit Facility

NEFPASS Facility

2022 Unsecured Notes

4 unchanged sentences

2027 Unsecured Notes

2027 Series F Unsecured Notes

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $4,338 and $4,485 as of

September 30, 2021 and December 31, 2020, respectively.

March 31, 2022 and December 31, 2021, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $27 and $36 as of

September 30, 2021 and December 31, 2020, respectively.

March 31, 2022 and December 31, 2021, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $313 and $408 as of

September 30, 2021 and December 31, 2020, respectively.

March 31, 2022 and December 31, 2021, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $789 and $857 as of

September 30, 2021 and December 31, 2020, respectively.

March 31, 2022 and December 31, 2021, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $588 and $616 as of

September 30, 2021 and December 31, 2020, respectively.

March 31, 2022 and December 31, 2021, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $57 and $60 as of

September 30, 2021 and December 31, 2020, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $33 as of September 30,

March 31, 2022 and December 31, 2021, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $30 as of March 31, 2022.

Unsecured Notes

On September 14, 2021, the Company closed a private offering of $50,000 of the 2027 Unsecured Notes with a fixed interest rate of 2.95%

and a maturity date of March 14, 2027.

On January 6, 2022, the Company closed a private offering of $135,000 of the 2027 Series F Unsecured Notes with a fixed interest rate of

3.33% and a maturity date of January 6, 2027.

Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6.

The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional

On September 14, 2021, the Company closed a private offering of $50,000 of the 2027 Unsecured Notes with a fixed interest

rate of 2.95% and a maturity date of March 14, 2027.

Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14.

The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

On December 18, 2019, the Company closed a private offering of $125,000 of the 2024 Unsecured Notes with a fixed interest rate of 4.20%

and a maturity date of December 15, 2024.

The 2027 Unsecured Notes were issued in a private placement only to qualified institutional

On December 18, 2019, the Company closed a private offering of $125,000 of the 2024 Unsecured Notes with a fixed interest

rate of 4.20% and a maturity date of December 15, 2024.

Interest on the 2024 Unsecured Notes is due semi-annually on June 15 and December 15.

The 2024 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private offering of $75,000 of the 2026 Unsecured Notes with a fixed interest rate of 4.375%

and a maturity date of December 15, 2026.

The 2024 Unsecured Notes were issued in a private placement only to qualified institutional

On December 18, 2019, the Company closed a private offering of $75,000 of the 2026 Unsecured Notes with a fixed interest

rate of 4.375% and a maturity date of December 15, 2026.

Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15.

The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 28, 2017, the Company closed a private offering of $21,000 of the 2022 Tranche C Notes with a fixed interest rate of 4.50%

and a maturity date of December 28, 2022.

The 2026 Unsecured Notes were issued in a private placement only to qualified institutional

On December 28, 2017, the Company closed a private offering of $21,000 of the 2022 Tranche C Notes with a fixed interest

rate of 4.50% and a maturity date of December 28, 2022.

Interest on the 2022 Tranche C Notes is due semi-annually on June 28 and December 28.

The 2022 Tranche C Notes were issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75,000 in aggregate principal amount of publicly registered 2023 Unsecured Notes for net proceeds of

The 2022 Tranche C Notes were issued in a private placement only to qualified institutional

On November 22, 2017, we issued $75,000 in aggregate principal amount of publicly registered 2023 Unsecured Notes for net

proceeds of $73,846.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on January 20, 2018.

The 2023 Unsecured Notes mature on January 20,

On February 15, 2017, the Company closed a private offering of $100,000 of the 2022 Unsecured Notes with a fixed interest rate of 4.60%

and a maturity date of May 8, 2022.

On February 15, 2017, the Company closed a private offering of $100,000 of the 2022 Unsecured Notes

with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On November 8, 2016, the Company closed a private offering of $50,000 of the 2022 Unsecured Notes with a fixed interest rate of 4.40% and

a maturity date of May 8, 2022.

The 2022 Unsecured Notes were issued in a private placement only to qualified

institutional buyers.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2022

thousands, except share amounts)

On November 8, 2016, the Company closed a private offering of $50,000 of the 2022 Unsecured

Notes with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

Revolving and Term Loan Facilities

On August 28, 2019, the Company repaid its existing senior secured credit agreement due September 2021 and entered into the new senior

secured credit agreement (the Credit Facility).

The Credit Facility is currently composed of $545,000 of revolving credit and $75,000 of term loans.

Borrowings generally bear interest at a rate per annum equal to the base rate plus a

range of 2.00-2.25% or the alternate base rate plus 1.00%-1.25%.

The Credit Facility has no LIBOR floor requirement.

The Credit Facility matures in August 2024 and

includes ratable amortization in the final year.

The 2022 Unsecured Notes were issued in a private placement only to

qualified institutional buyers.

Revolving and Term Loan Facility

On December 28, 2021, the Company closed on Amendment No.

1 to its August 28, 2019 senior secured credit agreement (the

Credit Facility).

Following the amendment, the Credit Facility is composed of $600,000 of revolving credit and $100,000 of term loans.

Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of 1.75%-2.00% or the alternate base rate plus 0.75%-1.00%.

The Credit Facility has a 0% floor and matures in December 2026 and includes ratable amortization in the final year.

The Credit Facility may be increased up to $800,000 with additional new lenders or an increase in commitments from current lenders.

The Credit Facility contains certain customary affirmative and

negative covenants and events of default.

In addition, the Credit Facility contains certain financial covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset coverage ratio.

September 30, 2021, outstanding USD equivalent borrowings under the Credit Facility totaled $193,500, composed of $118,500 of revolving credit and $75,000 of term loans.

On September 26, 2018, NEFPASS SPV LLC, a newly formed wholly-owned subsidiary of NEFPASS LLC, as borrower entered into a $50,000 senior

secured revolving credit facility (the NEFPASS Facility) with Keybank acting as administrative agent.

The Company acts as servicer under the NEFPASS Facility.

The NEFPASS Facility is scheduled to mature on September 26, 2023.

NEFPASS Facility generally bears interest at a rate of LIBOR plus 2.15%.

NEFPASS and NEFPASS SPV LLC, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage

restrictions, reporting requirements and other customary requirements for similar credit facilities.

The NEFPASS Facility also includes usual and customary events of default for credit facilities of this nature.

There were $28,240 of borrowings

outstanding as of September 30, 2021.

Certain covenants on our issued debt may restrict our business activities, including

limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

The Credit Facility contains certain customary affirmative and negative covenants and events of default.

the Credit Facility contains certain financial covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset coverage ratio.

At March 31, 2022, outstanding USD equivalent borrowings

under the Credit Facility totaled $184,000, composed of $84,000 of revolving credit and $100,000 of term loans.

Certain covenants on our

issued debt may restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

The Company has made an election to apply the fair value option of accounting to the 2022 Unsecured Notes, in accordance with ASC 825-10.

2 unchanged sentences

reported in the Consolidated Statement of Operations.

The average annualized interest cost for all borrowings for the three months ended

March 31, 2022 and the year ended December 31, 2021 was 3.63% and 3.64%, respectively.

These costs are exclusive of other credit facility expenses such as unused fees, agency fees and other prepaid expenses related to establishing and/or

amending the Credit Facility, the 2022 Unsecured Notes, the 2022 Tranche C Notes, the 2023 Unsecured Notes, the 2024 Unsecured Notes, the 2026 Unsecured Notes, the 2027 Unsecured Notes and the 2027 Series F Unsecured Notes (collectively the

Debt Instruments), if any.

The maximum amounts borrowed on the Debt Instruments during the three months ended March 31, 2022 and the year ended December 31, 2021 were $836,500 and $902,550, respectively.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

The average annualized interest cost for all borrowings for the nine months ended September 30, 2021 and the year ended December 31,

2020 was 3.69% and 4.11%, respectively.

These costs are exclusive of other credit facility expenses such as unused fees, agency fees and other prepaid expenses related to establishing and/or amending the Credit Facility, the 2022 Unsecured Notes,

the 2022 Tranche C Notes, the NEFPASS Facility, the 2023 Unsecured Notes, the 2024 Unsecured Notes, the 2026 Unsecured Notes and the 2027 Unsecured Notes (collectively the Credit Facilities), if any.

The maximum amounts borrowed on the

Credit Facilities during the nine months ended September 30, 2021 and the year ended December 31, 2020 were $728,000 and $677,000, respectively.

March 31, 2022

thousands, except share amounts)

Financial Highlights

following is a schedule of financial highlights for the nine months ended September 30, 2021 and 2020:

Nine months ended

September 30, 2021

September 30, 2020

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

Three months ended

March 31, 2022

Three months ended

March 31, 2021

Per Share Data:

2 unchanged sentences

Net realized and unrealized gain (loss)

Net increase (decrease) in net assets resulting from operations

Net increase in net assets resulting from operations

Distributions to stockholders:

2 unchanged sentences

Per share market value, end of period

Total Return (b)

Total Return (b)(c)

Net assets, end of period

15 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

March 31, 2022

thousands, except share amounts)

SLR Credit Solutions

December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (Crystal Financial) for $275,000 in cash.

Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit

Solutions (SLR Credit), f/k/a Crystal Financial LLC.

The remaining financial interest was held by various employees of SLR Credit, through their investment in Crystal Management LP.

SLR Credit had a diversified portfolio of 23 loans

having a total par value of approximately $400,000 at November 30, 2012 and a $275,000 committed revolving credit facility.

On July 28, 2016, the Company purchased Crystal Management LPs approximately 2% equity interest in SLR Credit

for approximately $5,737.

On December 28, 2012, we acquired an equity interest in Crystal Capital Financial Holdings LLC (Crystal Financial) for

$275,000 in cash.

Crystal Financial owned approximately 98% of the outstanding ownership interest in SLR Credit Solutions (SLR Credit), f/k/a Crystal Financial LLC.

The remaining financial interest was held by various employees of SLR

Credit, through their investment in Crystal Management LP.

SLR Credit had a diversified portfolio of 23 loans having a total par value of approximately $400,000 at November 30, 2012 and a $275,000 committed revolving credit facility.

July 28, 2016, the Company purchased Crystal Management LPs approximately 2% equity interest in SLR Credit for approximately $5,737.

Upon the closing of this transaction, the Company holds 100% of the equity interest in SLR Credit.

On September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved.

As of March 11, 2021, total

commitments to the revolving credit facility are $280,000.

As of September 30, 2021 SLR Credit had 24 funded commitments to 19

different issuers with total funded loans of approximately $266,370 on total assets of $387,953.

As of December 31, 2020, SLR Credit had 30 funded commitments to 24 different issuers with total funded loans of approximately $404,115 on total

assets of $433,914.

As of September 30, 2021 and December 31, 2020, the largest loan outstanding totaled $30,000 and $45,000, respectively.

For the same periods, the average exposure per issuer was $14,019 and $16,838,

respectively.

SLR Credits credit facility, which is non-recourse to the Company, had approximately $140,733 and $183,896 of borrowings outstanding at September 30, 2021 and December 31,

2020, respectively.

For the three months ended September 30, 2021 and 2020, SLR Credit had net income of $5,445 and $6,041, respectively, on gross income of $9,508 and $9,301, respectively.

For the nine months ended September 30, 2021

September 30, 2016, Crystal Capital Financial Holdings LLC was dissolved.

As of March 31, 2022, total commitments to the revolving credit facility are $250,000.

As of March 31, 2022 SLR Credit had 24 funded commitments to 20 different issuers with total funded loans of approximately $305,574 on

total assets of $362,878.

As of December 31, 2021 SLR Credit had 22 funded commitments to 19 different issuers with total funded loans of approximately $287,375 on total assets of $347,821.

As of March 31, 2022 and December 31, 2021,

the largest loan outstanding totaled $34,433 and $35,000, respectively.

For the same periods, the average exposure per issuer was $15,279 and $15,125, respectively.

SLR Credits credit facility, which is

non-recourse to the Company, had approximately $125,894 and $100,742 of borrowings outstanding at March 31, 2022 and December 31, 2021, respectively.

For the three months ended March 31, 2022

and 2021, SLR Credit had net income of $2,780 and $4,940, respectively, on gross income of $6,694 and $9,676, respectively.

Due to timing and non-cash items, there may be material differences between

GAAP net income and cash available for distributions.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

Due to timing and non-cash items, there may be material differences between GAAP

net income and cash available for distributions.

Commitments and Contingencies

Off-Balance Sheet Arrangements

The Company had unfunded debt and equity commitments to various revolving and delayed-draw term loans as well as to SLR Credit.

amount of these unfunded commitments as of September 30, 2021 and December 31, 2020 is $200,958 and $126,180, respectively, comprised of the following:

September 30,

amount of these unfunded commitments as of March 31, 2022 and December 31, 2021 is $224,912 and $226,733, respectively, comprised of the following:

SLR Credit Solutions*

NAC Holdings Corporation

Arcutis Biotherapeutics, Inc.

BridgeBio Pharma, Inc.

CC SAG Holdings Corp.

1 unchanged sentence

Inszone Mid, LLC

Smile Doctors LLC

SOC Telemed, Inc.

Stryten Energy LLC

Vapotherm, Inc.

Ardelyx, Inc.

One Touch Direct, LLC

Rezolute, Inc.

SLR Equipment Finance

Neuronetics, Inc.

Ivy Fertility Services, LLC

SOC Telemed, Inc.

Maurices, Incorporated

NAC Holdings Corporation

Atria Wealth Solutions, Inc.

Rezolute, Inc.

Basic Fun, Inc.

Kid Distro Holdings, LLC

1 unchanged sentence

Foundation Consumer Brands, LLC

Ultimate Baked Goods Midco LLC

Basic Fun, Inc.

Pinnacle Treatment Centers, Inc.

SunMed Group Holdings, LLC

Soleo Health Holdings, Inc.

Cardiva Medical, Inc.

Kindred Biosciences, Inc.

PQ Bypass, Inc.

Centrexion Therapeutics, Inc.

Sentry Data Systems, Inc.

Delphinus Medical Technologies, Inc.

SLR Equipment Finance

Pinnacle Treatment Centers, Inc.

American Teleconferencing Services, Ltd.

Ultimate Baked Goods Midco LLC

Neuronetics, Inc.

Total Commitments

The Company controls the funding of the SLR Credit Solutions commitment and may cancel it at its discretion.

The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the

portfolio companys achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the

financial condition or business outlook for the company.

The Company controls the funding of the SLR Credit Solutions commitment and may cancel it at its

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2022

thousands, except share amounts)

The credit agreements of the above loan commitments contain customary lending provisions and/or are

subject to the portfolio companys achievement of certain milestones that allow relief to the Company from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that

affect the financial condition or business outlook for the company.

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.

September 30, 2021 and December 31, 2020, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment.

of March 31, 2022 and December 31, 2021, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment.

Merger Litigation

On January 17,

2022, a stockholder complaint was filed in the United States District Court for the Eastern District of New York, against the Company and the members of the Board, entitled Gates v.

SLR Investment Corp., et al., No.

1:22-cv-00261 (the Gates Complaint).

On January 21, 2022, a stockholder complaint was filed in the United States District Court for the Southern District of New York, against the Company and

the members of the Board, entitled Shumacher v.

SLR Investment Corp., et al., No.

1:22-cv-00576 (the Shumacher Complaint).

On January 31, 2022, two putative class action stockholder complaints were filed in the Circuit Court for Baltimore City, Maryland

against SUNS and the members of the Board of Directors of SUNS (the SUNS Board), captioned respectively Neal v.

Gross, et al., No.

24-C-22-000557 (Md.

Baltimore City) (the Neal Complaint), and Tobin v.

Gross, et al., 24-C-22-000558 (Md.

Baltimore City) (the Tobin Complaint).

On February 8, 2022, a stockholder complaint was filed in the United States District Court for the Southern District of New York, against

SUNS and the members of the SUNS Board, entitled Kershner v.

SLR Senior Investment Corp., et al., No.

1:22-cv-01096 (the Kershner Complaint).

February 21, 2022, a stockholder complaint was filed in the United States District Court for the Southern District of New York, against SUNS and the members of the SUNS Board, entitled Sharp v.

SLR Senior Investment Corp., et al., No.

1:22-cv-01418 (the Sharp Complaint).

On February 22, 2022, a stockholder complaint was filed in the United States District Court for the Southern District of

New York, against SUNS, the members of the SUNS Board, us, and the Investment Adviser, entitled Ciccotelli v.

SLR Senior Investment Corp., et al., No.

1:22-cv-01454 (the

Ciccotelli Complaint).

On February 22, 2022, a stockholder complaint was filed in the United States District Court for the Eastern District of Pennsylvania, against SUNS and the members of the SUNS Board entitled Justice v.

Senior Investment Corp., et al., No.

2:22-cv-00673 (the Justice Complaint, and together with the Gates Complaint, the Schumacher Complaint, the Neal

Complaint, the Tobin Complaint, the Kershner Complaint, the Sharp Complaint, the Ciccotelli Complaint and the Justice Complaint, the Merger Complaints).

Each of the Gates and Schumacher Complaints alleged, among other things, that the joint proxy statement/prospectus initially filed with the

SEC on December 16, 2021 contained materially misleading and incomplete disclosures.

Each of the Gates and Schumacher Complaints sought, among other things, that supplemental disclosures be made to the joint proxy statement/ prospectus to

address the alleged materially misleading and incomplete disclosures.

As a result of the alleged omissions, each of the Gates and Schumacher Complaints sought to hold the Company and its directors liable for violating Section 14(a) of the

Exchange Act and Rule 14a-9 promulgated thereunder, and additionally sought to hold the Companys directors liable as control persons pursuant to Section 20(a) of the Exchange Act.

Each of the Neal and Tobin Complaints alleged, among other things, that the members of the SUNS Board breached their fiduciary duties when

they approved the proposed merger between SUNS and the Company, and that the disclosures in the joint proxy statement/prospectus initially filed with the SEC on December 16, 2021 contained materially misleading and incomplete disclosures.

of Neal and Tobin Complaints raised these claims under Maryland law, and sought:

(i) certification that the case can be maintained as a class action, with the plaintiff named as a representative of the proposed class (consisting of the public

shareholders of SUNS);

(ii) an order enjoining the shareholder vote to approve the proposed merger between SUNS and the Company;

and (iii) rescission of the proposed merger between SUNS and the Company.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

March 31, 2022

thousands, except share amounts)

The defendants believe that the Company made complete disclosure of all information required to be

disclosed to ensure that the Companys stockholders were able to make an informed vote at the Companys Special Meeting of Stockholders held on March 22, 2022 and that the additional disclosures requested by the plaintiff were

immaterial and/or were included in the preliminary joint proxy statement/prospectus filed as part of the Companys Registration Statement on Form N-14 on December 16, 2021.

Accordingly, the

defendants believe these claims are without merit and intend to vigorously defend against them.

However, in an attempt to reduce the costs, risks and uncertainties inherent in litigation and to maximize the Companys net asset value at the time

of the Mergers, the Company determined to voluntarily include certain supplemental disclosures in its Current Report on Form 8-K filed on March 14, 2022.

The inclusion of such disclosures shall not be

deemed an admission of the legal necessity or materiality of any of these disclosures under applicable law.

Rather, the Company and the Board specifically denied all allegations in the Merger Complaints that any additional disclosure was or is

SLR Equipment Finance

July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary Nations Equipment Finance, LLC.

Effective February 25, 2021, Nations Equipment Finance, LLC and its

related companies is now known as SLR Equipment Finance (SLR Equipment).

SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S.

On July 31, 2017, we acquired a 100% equity interest in NEF Holdings, LLC, which conducts its business through its wholly-owned subsidiary

Nations Equipment Finance, LLC.

Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies is doing business as SLR Equipment Finance (SLR Equipment).

SLR Equipment is an independent equipment finance

company that provides senior secured loans and leases primarily to U.S.

based companies.

We invested $209,866 in

cash to effect the transaction, of which $145,000 was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and $64,866 was used to

purchase certain leases and loans held by SLR Equipment through NEFPASS LLC.

Concurrent with the transaction, SLR Equipment refinanced its existing senior secured credit facility into a $150,000 non-recourse

facility with an accordion feature to expand up to $250,000.

In September 2019, SLR Equipment amended the facility, increasing commitments to $213,957 with an accordion feature to expand up to $313,957 and extended the maturity date of the facility

to July 31, 2023.

At July 31, 2017, SLR Equipment also had two securitizations outstanding, with an issued note balance of $94,587, which were later redeemed in 2018.

As of September 30, 2021, SLR Equipment had 128 funded equipment-backed leases and loans to 58 different customers with a total net

We invested $209,866 in cash to effect the transaction, of which $145,000 was invested in the equity of SLR Equipment through our wholly-owned consolidated

taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and $64,866 was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC.

Concurrent with the transaction, SLR Equipment refinanced

its existing senior secured credit facility into a $150,000 non-recourse facility with an accordion feature to expand up to $250,000.

In September 2019, SLR Equipment amended the facility, increasing

commitments to $213,957 with an accordion feature to expand up to $313,957 and extended the maturity date of the facility to July 31, 2023.

As of March 31, 2022, SLR Equipment had 134 funded equipment-backed leases and loans to 59 different customers with a total net

investment in leases and loans of approximately $198,611 on total assets of $252,841.

As of December 31, 2020, NEF had 138 funded equipment-backed leases and loans to 61 different customers with a total net investment in leases and loans of

approximately $188,448 on total assets of $263,443.

As of September 30, 2021 and December 31, 2020, the largest position outstanding totaled $19,222 and $25,103, respectively.

As of December 31, 2021, SLR Equipment had 135 funded equipment-backed leases and loans to 61 different customers with a total net investment in leases and

loans of approximately $210,986 on total assets of $264,007.

As of March 31, 2022 and December 31, 2021, the largest position outstanding totaled $19,259 and $19,207, respectively.

For the same periods, the average exposure per customer

was $3,366 and $3,459, respectively.

SLR Equipments credit facility, which is non-recourse to the Company, had approximately $108,264 and $100,569 of borrowings outstanding at September 30,

SLR Equipments credit facility, which is non-recourse to the Company, had approximately $110,969 and $118,002 of borrowings outstanding at March 31, 2022

and December 31, 2021, respectively.

For the three months ended September 30, 2021 and September 30, 2020, SLR Equipment had net income (loss) of ($306) and $1,532, respectively, on gross income of $5,809 and $6,462,

respectively.

For the nine months ended September 30, 2021 and September 30, 2020, SLR Equipment had net loss of $2,301 and $395, respectively, on gross income of $16,443 and $17,795, respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

For the three months ended March 31, 2022 and March 31, 2021, SLR Equipment had net income (loss) of $594 and ($318), respectively, on gross income of $5,173 and $4,894, respectively.

Due to timing

and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

Capital Share Transactions

As of September 30, 2021 and September 30, 2020, 200,000,000 shares of $0.01 par value

capital stock were authorized.

There were no transactions in capital stock during the three and nine months ended September 30, 2021

and September 30, 2020.

of March 31, 2022 and March 31, 2021, 200,000,000 shares of $0.01 par value capital stock were authorized.

There were no

transactions in capital stock during the three months ended March 31, 2022 and March 31, 2021.

Kingsbridge Holdings, LLC

5 unchanged sentences

$216,596 to effect the transaction, of which $136,596 was invested to acquire 87.5% of KBHTs equity and $80,000 in KBHs debt.

The existing management team of KBH committed to continue to lead KBH after the transaction.

transaction, the Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5% of KBHTs equity.

September 30, 2021, KBHT had total assets of $734,592.

Recourse debt outstanding for KBHT totaled $196,158 as of September 30, 2021.

Non-recourse debt outstanding for KBHT totaled $349,008 at

September 30, 2021.

As of December 31, 2020, KBHT had total assets of $744,684.

KBHT also had recourse debt outstanding of $219,044 as well as non-recourse debt outstanding of $335,899 at

December 31, 2020.

For the three and nine months ended September 30, 2021, KBHT had net income of $3,163 and $10,314, respectively, on gross income of $60,510 and $180,079, respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in KBHTs funded commitments, the timing of originations, and

the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.

The existing management team of KBH committed to continue to lead KBH after the

Following the transaction, the Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5% of KBHTs equity.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2021

(in thousands, except share amounts)

March 31, 2022

thousands, except share amounts)

As of March 31, 2022 and December 31, 2021, KBHT had total assets of $729,363 and

$738,425, respectively.

For the same periods, debt recourse to KBHT totaled $221,392 and $216,881, respectively, and non-recourse debt totaled $321,205 and $323,844, respectively.

None of the debt is recourse

to the Company.

For the three months ended March 31, 2022 and 2021, KBHT had net income of $3,399 and $2,267, respectively, on gross income of $66,426 and $58,146, respectively.

Due to timing and

non-cash items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in KBHTs funded commitments, the timing of

originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.

Pending Merger with SUNS

December 1, 2021, we entered into the Merger Agreement, which provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into SUNS, with SUNS continuing as the surviving company and as our

wholly-owned subsidiary and, immediately thereafter, SUNS will merge with and into us, with us continuing as the surviving company.

Both the Board and SUNSs board of directors, including all of the respective independent directors, in each

case, on the recommendation of a special committee comprised solely of the independent directors of us or SUNS, as applicable, have approved the Merger Agreement and the transactions contemplated thereby.

The Merger Agreement contains customary representations and warranties by each of us, SUNS and the Investment Adviser.

The Merger Agreement

also contains customary covenants, including, among others, covenants relating to the operation of each of our and SUNSs businesses during the period prior to the closing of the Mergers.

Consummation of the Mergers, which occurred on April 1, 2022, was subject to certain closing conditions as disclosed in the Merger

Subsequent Events

has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued.

On November 3, 2021, our Board declared a quarterly distribution of $0.41 per share payable on January 5, 2022 to holders of record

as of December 16, 2021.

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated

financial statements were issued.

On April 1, 2022, the Company completed its previously announced acquisition of SUNS.

Pursuant to the Merger Agreement, Merger Sub was

first merged with and into SUNS, with SUNS as the surviving corporation, and, immediately following the Merger, SUNS was then merged with and into the Company, with the Company as the surviving company.

In accordance with the terms of the Merger

Agreement, at the effective time of the Merger, each outstanding share of SUNSs common stock was converted into the right to receive 0.7796 shares of the Companys common stock (with SUNSs stockholders receiving cash in lieu of

fractional shares of the Companys common stock).

As a result of the Mergers, the Company issued an aggregate of 12,511,825 shares of its common stock to former SUNS stockholders.

The Merger will be accounted for as an asset acquisition of SLR Senior Investment Corp.

by the Company in accordance with the asset

acquisition method of accounting as detailed in ASC 805-50, Business Combinations Related Issues, with the fair value of total consideration paid in conjunction with the Merger allocated to the assets

acquired and liabilities assumed based on their relative fair values as of the date of the Merger.

Generally, under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the cost of the asset (or net assets), but

also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group.

The cost of the group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed

based on their relative fair values of net identifiable assets acquired other than certain non-qualifying assets (for example cash) and does not give rise to goodwill.

The Company will be the

accounting survivor of the Merger.

Letter Agreement

On April 1, 2022, in connection with the consummation of the Mergers, the Company entered into a letter agreement (the Letter

Agreement) pursuant to which the Investment Adviser voluntarily agreed to a permanent 25 basis point reduction of the annual base management fee rate payable by the Company to the Investment Adviser pursuant to the Advisory Agreement,

resulting in an annual base management fee rate payable by the Company to the Investment Adviser of 1.50% on gross assets up to 200% of the Companys total net assets.

The Company retained the annual base management fee rate payable by the

Company to the Investment Adviser of 1.00% on gross assets that exceed 200% of the Companys total net assets.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

March 31, 2022

thousands, except share amounts)

Assumption of SUNS Credit Facility

On April 1, 2022, the Company entered into an assumption agreement (the CF Assumption Agreement), effective as of the closing

of the Mergers.

The CF Assumption Agreement relates to the Companys assumption of the Revolving Credit Facility, originally entered into on August 26, 2011 (as amended from time to time, the SUNS Credit Facility), by and among

SUNS SPV LLC (the SUNS SPV), a wholly-owned subsidiary of SUNS (as defined below), acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto.

Currently, the commitment under

the SUNS Credit Facility is $225,000;

however, the commitment can also be expanded up to $600,000.

The stated interest rate on the SUNS Credit Facility is LIBOR plus 2.00%-2.50% with no LIBOR floor requirement

and the current final maturity date is June 1, 2026.

The SUNS Credit Facility is secured by all of the assets held by SUNS SPV.

Under the terms of the SUNS Credit Facility and related transaction documents, the Company as successor to SUNS, and

SUNS SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit

The SUNS Credit Facility also includes usual and customary events of default for credit facilities of this nature.

Assumption of SUNS

On April 1, 2022, the Company entered into an assumption agreement (the Note Assumption Agreement), effective

as of the closing of the Mergers.

The Note Assumption Agreement relates to the Companys assumption of $85,000 in aggregate principal amount of five-year, 3.90% senior unsecured notes, due March 31, 2025 (the SUNS Notes) and

other obligations of SUNS under the Note Purchase Agreement, dated as of March 31, 2020 (the Note Purchase Agreement), among SUNS and certain institutional investors.

Interest on the SUNS Notes is due semi-annually on March 31

and September 30.

Pursuant to the Note Assumption Agreement, the Company expressly assumed on behalf of SUNS the due and punctual payment of the principal of (and premium, if any) and interest on all the SUNS Notes outstanding, and the due and

punctual performance and observance of every covenant and every condition of the Note Purchase Agreement, to be performed or observed by SUNS.

Dismissal of Merger Complaints

April 1, 2022, each of the Neal Complaint and the Tobin Complaint was dismissed as to the named plaintiffs only with the Court retaining jurisdiction in connection with a possible future fee and expense application by plaintiffs.

On April 6, 2022, each of the Schumacher Complaint, the Kershner Complaint, the Sharp Complaint, the Ciccotelli Complaint and Justice

Complaint was voluntarily dismissed.

On April 14, 2022, the Gates Complaint was voluntarily dismissed.

Distribution Declaration

April 4, 2022, our Board declared a monthly distribution of $0.136667 per share payable on May 3, 2022 to holders of record as of April 21, 2022.

On May 3, 2022, our Board declared a monthly distribution of $0.136667 per share payable on June 2, 2022 to holders of record as of

May 19, 2022.

Stock Repurchase Program

On May 3, 2022, our Board authorized a program for the purpose of repurchasing up to $50,000 of our outstanding shares of common stock.

Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market from time to time provided that we comply with our code of ethics and the guidelines specified in Rule 10b-18 of the Exchange Act, including certain price, market volume and timing constraints.

In addition, any repurchases will be conducted in accordance with the 1940 Act.

Unless amended or extended by our Board, we

expect the repurchase program to be in place until the earlier of May 1, 2023 or until $50,000 of our outstanding shares of common stock have been repurchased.

The timing and number of shares to be repurchased will depend on a number of

factors, including market conditions.

There are no assurances that we will engage in any repurchases.

Report of Independent Registered Public Accounting Firm

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(and subsidiaries) (the Company), including the consolidated

schedule of investments, as of September 30, 2021, the related consolidated statements of operations and changes in net assets, for the three-month and nine-month periods ended September 30, 2021 and 2020, the related consolidated

statements of cash flows for the nine-month periods ended September 30, 2021 and 2020, and the related notes (collectively, the consolidated interim financial information).

Based on our reviews, we are not aware of any material modifications

that should be made to the consolidated interim financial information for it to be in conformity with U.S.

generally accepted accounting principles.

have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of assets and liabilities, including the consolidated schedule of investments, of the

Company as of December 31, 2020, and the related consolidated statements of operations, changes in net assets, and cash flows for the year then ended (not presented herein);

and in our report dated February 24, 2021, we expressed an

unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities, including the

consolidated schedule of investments, as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities, including the consolidated schedule of investments, from which it

has been derived.

schedule of investments, as of March 31, 2022, the related consolidated statements of operations, changes in net assets, and cash flows for the three-month periods ended March 31, 2022 and 2021, and the related notes (collectively, the

consolidated interim financial information).

Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S.

generally accepted

accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)

(PCAOB), the consolidated statement of assets and liabilities, including the consolidated schedule of investments, of the Company as of December 31, 2021, and the related consolidated statements of operations, changes in net assets, and cash

flows for the year then ended (not presented herein);

and in our report dated March 1, 2022, we expressed an unqualified opinion on those consolidated financial statements.

In our opinion, the information set forth in the accompanying

consolidated statement of assets and liabilities, including the consolidated schedule of investments, as of December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities,

including the consolidated schedule of investments, from which it has been derived.

Basis for Review Results

consolidated interim financial information is the responsibility of the Companys management.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

This consolidated interim financial information is the responsibility of the Companys management.

We are a public accounting firm registered with the

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 reviews in

accordance with the standards of the PCAOB.

A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.

Accordingly, we do not express such an

We conducted our reviews in accordance with the standards of the PCAOB.

A review of consolidated interim financial information consists principally of

applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.

It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the

expression of an opinion regarding the financial statements taken as a whole.

Accordingly, we do not express such an opinion.

New York, New York

November 3, 2021

Managements Discussion and Analysis of Financial Condition

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investments and the impacts of the COVID-19 pandemic thereon.

These statements

are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted

in the forward-looking statements, including without limitation:

changes in the political conditions and relations between the United States, Russia, Ukraine and other nations.

These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors,

some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

an economic downturn, including as a result of the current COVID-19

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the extent that we receive payments denominated in foreign currency rather than U.S.

the ability to realize the anticipated benefits of the Mergers;

the effects of disruption on our business from the Mergers;

the combined companys plans, expectations, objectives and intentions as a result of the Mergers;

the risks, uncertainties and other factors we identify in Item 1A.

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reports on Form 10-Q and current reports on Form 8-K.

Solar Capital LLC, a Maryland limited liability company, was formed in February 2007 and commenced operations on March 13, 2007

with initial capital of $1.2 billion of which 47.04% was funded by affiliated parties.

Solar Capital LLC, a Maryland limited liability company, was formed in February 2007 and commenced operations on March 13, 2007 with

initial capital of $1.2 billion of which 47.04% was funded by affiliated parties.

SLR Investment Corp.

f/k/a Solar Capital, Ltd., a Maryland corporation formed in

November 2007, is a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a business development company

(BDC) under the Investment Company Act of 1940, as amended (the 1940 Act).

Furthermore, as the Company is an investment company, it continues to apply the guidance in the Financial Accounting Standards Board

(FASB) Accounting Standards Codification (ASC) Topic 946.

In addition, for U.S federal income tax purposes, the Company has elected to be treated as a regulated investment company (RIC) under Subchapter M of the

Internal Revenue Code of 1986, as amended (the Code).

On February 9, 2010, we priced our initial public offering,

selling 5.68 million shares of our common stock.

Concurrent with our initial public offering, Michael S.

Gross, our Chairman, Co-Chief Executive Officer and President, and Bruce Spohler, our Co-Chief Executive Officer and Chief Operating Officer, collectively purchased an additional 0.6 million shares of our common stock through a private placement transaction exempt from registration under the

Securities Act.

(the Company,

SLRC, we or our), a Maryland corporation formed in November 2007, is a closed-end, externally managed, non-diversified

management investment company that has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act).

Furthermore, as the Company is an investment company,

it continues to apply the guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946.

In addition, for U.S federal income tax purposes, the Company has elected to be treated

as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code).

On February 9, 2010, we priced our initial public offering, selling 5.68 million shares of our common stock.

Concurrent with our

initial public offering, Michael S.

Gross, our Chairman, Co-Chief Executive Officer and President, and Bruce Spohler, our Co-Chief Executive Officer and Chief Operating

Officer, collectively purchased an additional 0.6 million shares of our common stock through a private placement transaction exempt from registration under the Securities Act.

We invest primarily in privately held U.S.

middle-market companies, where we believe the supply of primary capital is

limited and the investment opportunities are most attractive.

middle-market companies, where we believe the supply of primary capital is limited and the

investment opportunities are most attractive.

Our investment objective is to generate both current income and capital appreciation through debt and equity investments.

We invest primarily in leveraged middle-market companies in the

form of senior secured loans, financing leases and to a lesser extent, unsecured loans and equity securities.

We invest primarily in leveraged middle-market companies in the form of senior

secured loans, financing leases and to a lesser extent, unsecured loans and equity securities.

From time to time, we may also invest in public companies that are thinly traded.

Our business is focused primarily on the direct

origination of investments through portfolio companies or their financial sponsors.

Our investments generally range between $5 million and $100 million each, although we expect that this investment size will vary proportionately with the

size of our capital base and/or with strategic initiatives.

Our investment activities are managed by SLR Capital Partners, LLC (the Investment Adviser) and supervised by our board of directors, a majority of whom are non-interested, as such term is defined in the 1940 Act.

Our business is focused primarily on the direct origination of

investments through portfolio companies or their financial sponsors.

Our investments generally range between $5 million and $100 million each, although we expect that this investment size will vary proportionately with the size of our

capital base and/or with strategic initiatives.

Our investment activities are managed by SLR Capital Partners, LLC (the Investment Adviser) and supervised by the board of directors (the Board), a majority of whom are non-interested, as such term is defined in the 1940 Act.

SLR Capital Management, LLC (the Administrator) provides the administrative services necessary for us to operate.

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countries outside of the United States.

As of September 30, 2021, the Investment Adviser has directly invested approximately

$11.6 billion in more than 440 different portfolio companies since 2006.

Over the same period, the Investment Adviser completed transactions with more than 200 different financial sponsors.

Merger Agreement

On December 1, 2021, we entered into an Agreement and Plan of Merger, or the Merger Agreement, with SLR Senior Investment Corp., a

Maryland corporation (SUNS), Solstice Merger Sub, Inc., a Maryland corporation and our wholly-owned subsidiary (Merger Sub), and, solely for the limited purposes set forth therein, the Investment Adviser.

The Merger Agreement

provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into SUNS, with SUNS continuing as the surviving company and as SUNSs wholly-owned subsidiary (the Merger,) and, immediately

thereafter, SUNS will merge with and into us, with us continuing as the surviving company (together with the Merger, the Mergers).

Both the Board and SUNSs board of directors, including all of the respective independent directors,

in each case, on the recommendation of a special committee comprised solely of the independent directors of us and SUNS, as applicable, have approved the Merger Agreement and the transactions contemplated thereby.

The Merger Agreement contains customary representations and warranties by each of us, SUNS and the Investment Adviser.

The Merger Agreement

also contains customary covenants, including, among others, covenants relating to the operation of each of our and SUNSs businesses during the period prior to the closing of the Mergers.

Consummation of the Mergers, which occurred on April 1, 2022, was subject to certain closing conditions as disclosed in the Merger

Recent Developments

On November 3,

2021, our Board declared a quarterly distribution of $0.41 per share payable on January 5, 2022 to holders of record as of December 16, 2021.

On April 1, 2022, we completed our previously announced acquisition of SUNS.

Pursuant to the Merger Agreement, Merger Sub was first merged

with and into SUNS, with SUNS as the surviving corporation, and, immediately following the Merger, SUNS was then merged with and into us, with us as the surviving company.

In accordance with the terms of the Merger Agreement, at the effective time

of the Merger, each outstanding share of SUNSs common stock was converted into the right to receive 0.7796 shares of our common stock (with SUNSs stockholders receiving cash in lieu of fractional shares of our common stock).

of the Mergers, we issued an aggregate of 12,511,825 shares of our common stock to former SUNS stockholders.

The Merger will be accounted for as an asset acquisition of SLR Senior Investment Corp.

the Company in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations Related Issues, with the fair value of total consideration paid in conjunction

with the Merger allocated to the assets acquired and liabilities assumed based on their relative fair values as of the date of the Merger.

Generally, under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the

cost of the asset (or net assets), but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group.

The cost of the group of assets acquired in an asset acquisition is allocated to the individual

assets acquired or liabilities assumed based on their relative fair values of net identifiable assets acquired other than certain non-qualifying assets (for example cash) and does not give rise to

The Company will be the accounting survivor of the Merger.

Letter Agreement

On April 1, 2022, in connection with the consummation of the Mergers, we entered into a letter agreement (the Letter

Agreement) pursuant to which the Investment Adviser voluntarily agreed to a permanent 25 basis point reduction of the annual base management fee rate payable by us to the Investment Adviser pursuant to the Advisory Agreement, resulting in an

annual base management fee rate payable by us to the Investment Adviser of 1.50% on gross assets up to 200% of our total net assets.

We retained the annual base management fee rate payable by us to the Investment Adviser of 1.00% on gross assets

that exceed 200% of our total net assets.

Assumption of SUNS Credit Facility

On April 1, 2022, we entered into an assumption agreement (the CF Assumption Agreement), effective as of the closing of the

The CF Assumption Agreement relates to our assumption of the Revolving Credit Facility, originally entered into on August 26, 2011 (as amended from time to time, the SUNS Credit Facility), by and among SUNS SPV LLC (the

SUNS SPV), a wholly-owned subsidiary of SUNS (as defined below), acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto.

Currently, the commitment under the SUNS Credit

Facility is $225 million;

however, the commitment can also be expanded up to $600 million.

The stated interest rate on the SUNS Credit Facility is LIBOR plus 2.00%-2.50% with no LIBOR floor

requirement and the current final maturity date is June 1, 2026.

The SUNS Credit Facility is secured by all of the assets held by SUNS SPV.

Under the terms of the SUNS Credit Facility and related transaction documents, we as successor to SUNS,

and SUNS SPV, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit

The SUNS Credit Facility also includes usual and customary events of default for credit facilities of this nature.

Assumption of SUNS

On April 1, 2022, we entered into an assumption agreement (the Note Assumption Agreement), effective as of the

closing of the Mergers.

The Note Assumption Agreement relates to our assumption of $85 million in aggregate principal amount of five-year, 3.90% senior unsecured notes, due March 31, 2025 (the SUNS Notes) and other obligations

of SUNS under the Note Purchase Agreement, dated as of March 31, 2020 (the Note Purchase Agreement), among SUNS and certain institutional investors.

Interest on the SUNS Notes is due semi-annually on March 31 and September 30.

Pursuant to the Note Assumption Agreement, we expressly assumed on behalf of SUNS the due and punctual payment of the principal of (and premium, if any) and interest on all the SUNS Notes outstanding, and the due and punctual performance and

observance of every covenant and every condition of the Note Purchase Agreement, to be performed or observed by SUNS.

Dismissal of Merger Complaints

On April 1, 2022, each of the Neal Complaint (as defined in Part II, Item 1 Legal Proceedings ) and the Tobin

Complaint (as defined in Part II, Item 1 Legal Proceedings ) was dismissed as to the named plaintiffs only with the Court retaining jurisdiction in connection with a possible future fee and expense application by plaintiffs.

On April 6, 2022, each of the Schumacher Complaint (as defined in Part II, Item 1 Legal Proceedings ), the Kershner

Complaint (as defined in Part II, Item 1 Legal Proceedings ), the Sharp Complaint (as defined in Part II, Item 1 Legal Proceedings ), the Ciccotelli Complaint (as defined in Part II, Item 1 Legal Proceedings )

and Justice Complaint (as defined in Part II, Item 1 Legal Proceedings ) was voluntarily dismissed.

On April 14, 2022,

the Gates Complaint (as defined in Part II, Item 1 Legal Proceedings ) was voluntarily dismissed.

Distribution Declaration

On April 4, 2022, the Board declared a monthly distribution of $0.136667 per share payable on May 3, 2022 to holders of record as of

April 21, 2022.

On May 3, 2022, the Board declared a monthly distribution of $0.136667 per share payable on June 2, 2022

to holders of record as of May 19, 2022.

Stock Repurchase Program

On May 3, 2022, our Board authorized a program for the purpose of repurchasing up to $50 million of our outstanding shares of common

In addition, any repurchases will be conducted in accordance with the 1940 Act.

Unless amended or extended by our Board, we

expect the repurchase program to be in place until the earlier of May 1, 2023 or until $50 million of our outstanding shares of common stock have been repurchased.

The timing and number of shares to be repurchased will depend on a number

of factors, including market conditions.

There are no assurances that we will engage in any repurchases.

The global outbreak of the COVID-19 pandemic, and the related effect on the U.S.

and global economies,

has continued to have adverse consequences for the business operations of some of the Companys portfolio companies and, as a result, has had adverse effects on the Companys operations.

The ultimate economic fallout from the pandemic, and

the long-term impact on economies, markets, industries and individual issuers, including the Company, remain uncertain.

The operational and financial performance of the issuers of securities in which the Company invests depends on future

developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Companys investments and negatively impact the Companys performance.

Our level of investment

activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle market companies, the level of merger and acquisition activity for such companies, the

general economic environment and the competitive environment for the types of investments we make.

As a BDC, we must not acquire any assets other than qualifying assets specified in the 1940 Act unless, at the time the acquisition is

made, at least 70% of our total assets are qualifying assets (with certain limited exceptions).

Qualifying assets include investments in eligible portfolio companies. The definition of eligible portfolio company includes

certain public companies that do not have any securities listed on a national securities exchange and companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

We generate revenue primarily in

the form of interest and dividend income from the securities we hold and capital gains, if any, on investment securities that we may sell.

Our debt investments generally have a stated term of three to seven years and typically bear interest at a

floating rate usually determined on the basis of a benchmark London interbank offered rate (LIBOR), commercial paper rate, or the prime rate.

and global economies, has continued to have adverse consequences for the business operations of some of the Companys portfolio companies and, as a result,

has had adverse effects on the Companys operations.

The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, including the Company, remain uncertain.

The operational

and financial performance of the issuers of securities in which the Company invests depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the

Companys investments and negatively impact the Companys performance.

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt

and equity capital available to middle market companies, the level of merger and acquisition activity for such companies, the general economic environment and the competitive environment for the types of investments we make.

As a BDC, we must not

acquire any assets other than qualifying assets specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions).

Qualifying assets include

investments in eligible portfolio companies. The definition of eligible portfolio company includes certain public companies that do not have any securities listed on a national securities exchange and companies whose

securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

We generate revenue primarily in the form of interest and dividend income from the securities we hold and capital gains, if any, on investment

securities that we may sell.

Our debt investments generally have a stated term of three to seven years and typically bear interest at a floating rate usually determined on the basis of a benchmark London interbank offered rate (LIBOR),

commercial paper rate, or the prime rate.

Interest on our debt investments is generally payable monthly or quarterly but may be bi-monthly or semi-annually.

In addition, our investments may provide payment-in-kind (PIK) income.

Such amounts of accrued

PIK income are added to the cost of the investment on the respective capitalization dates and generally become due at maturity of the investment or upon the investment being called by the issuer.

We may also generate revenue in the form of

commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable, consulting fees, etc.

All investment professionals of the investment adviser and their respective staffs, when and to the extent engaged in providing investment

advisory and management services, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by SLR Capital Partners.

We bear all other costs and expenses of our operations and

transactions, including (without limitation):

Such amounts of accrued PIK income are added to the cost of the investment on the respective capitalization dates and generally

become due at maturity of the investment or upon the investment being called by the issuer.

We may also generate revenue in the form of commitment, origination, structuring fees, fees for providing managerial assistance and, if applicable,

consulting fees, etc.

investment professionals of the investment adviser and their respective staffs, when and to the extent engaged in providing investment advisory and management services, and the compensation and routine overhead expenses of such personnel allocable

to such services, are provided and paid for by the Investment Adviser.

We bear all other costs and expenses of our operations and transactions, including (without limitation):

the cost of our organization and public offerings;

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Portfolio and Investment Activity

During the three months ended September 30, 2021, we invested approximately $230.7 million across 23 portfolio companies.

compares to investing approximately $42.4 million in 12 portfolio companies for the three months ended September 30, 2020.

Investments sold, prepaid or repaid during the three months ended September 30, 2021 totaled approximately

$105.9 million versus approximately $60.3 million for the three months ended September 30, 2020.

At September 30, 2021, our portfolio consisted of 106 portfolio companies and was

invested 28.4% in cash flow senior secured loans, 26.5% in asset-based senior secured loans / SLR Credit Solutions (SLR Credit), 13.7% in Kingsbridge Holdings, LLC (KBH), 16.7% in equipment senior secured financings / SLR

Equipment Finance (SLR Equipment), and 14.7% in life science senior secured loans, in each case, measured at fair value, versus 105 portfolio companies invested 22.3% in cash flow senior secured loans, 31.8% in asset-based senior secured

loans / SLR Credit, 22.0% in equipment senior secured financings / SLR Equipment, and 23.9% in life science senior secured loans, in each case, measured at fair value, at September 30, 2020.

At September 30, 2021, 74.1% or $1.20 billion of our income producing investment portfolio * is floating rate and 25.9% or $418.4 million is fixed rate, measured at fair value.

At September 30, 2020, 77.3% or $1.04 billion of our income producing investment portfolio * is floating rate and 22.7% or $305.1 million is fixed rate, measured at fair value.

As of September 30, 2021 and 2020, we had one and zero issuers, respectively, on non-accrual status.

Since inception through September 30, 2021, the Company and its predecessor

companies have invested approximately $7.1 billion in more than 315 portfolio companies.

Over the same period, the Company has completed transactions with more than 150 different financial sponsors.

* We have included SLR Credit Solutions, SLR Equipment Finance and Kingsbridge Holdings,

LLC within our income producing investment portfolio.

During the three months ended March 31, 2022, we invested approximately $67.5 million across 14 portfolio companies.

This compares to

investing approximately $98.7 million in 15 portfolio companies for the three months ended March 31, 2021.

Investments sold, prepaid or repaid during the three months ended March 31, 2022 totaled approximately $101.0 million

versus approximately $67.0 million for the three months ended March 31, 2021.

At March 31, 2022, our portfolio consisted

of 101 portfolio companies and was invested 23.2% in cash flow senior secured loans, 28.4% in asset-based senior secured loans / SLR Credit Solutions (SLR Credit), 14.1% in Kingsbridge Holdings, LLC (KBH), 16.0% in equipment

senior secured financings / SLR Equipment Finance (SLR Equipment), and 18.3% in life science senior secured loans, in each case, measured at fair value, versus 105 portfolio companies and was invested 21.1% in cash flow senior secured

loans, 25.8% in asset-based senior secured loans / SLR Credit, 13.7% in KBH, 18.2% in equipment senior secured financings / SLR Equipment, and 21.2% in life science senior secured loans, in each case, measured at fair value, at March 31, 2021.

At March 31, 2022, 79.4% or $1.15 billion of our income producing investment portfolio * is floating rate and 20.6% or $296.9 million is fixed rate, measured at fair value.

At March 31, 2021, 72.8% or $1.14 billion of our income producing investment portfolio * is floating rate and 27.2% or $426.3 million is fixed rate, measured at fair value.

As of March 31, 2022 and 2021, we had two and zero issuers, respectively, on non-accrual status.

We have included SLR Credit Solutions, SLR Equipment Finance and Kingsbridge Holdings, LLC within our income

producing investment portfolio.

SLR Credit Solutions

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As of March 31, 2022, total commitments to the revolving credit facility are $250 million.

As of September 30, 2021, SLR Credit had 24 funded commitments to 19 different issuers with total funded loans of approximately

As of March 31, 2022, SLR Credit had 24 funded commitments to 20 different issuers with total funded loans of approximately

$305.6 million on total assets of $362.9 million.

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$347.8 million.

As of September 30, 2021 and December 31, 2020, the largest loan outstanding totaled $30.0 million and $45.0 million, respectively.

For the same periods, the average exposure per issuer was $14.0 million

and $16.8 million, respectively.

As of March 31, 2022 and December 31, 2021, the largest loan outstanding totaled $34.4 million and $35.0 million, respectively.

For the same periods, the average exposure per issuer was $15.3 million and

$15.1 million, respectively.

SLR Credits credit facility, which is non-recourse to the Company, had approximately $125.9 million and $100.7 million of borrowings outstanding at

September 30, 2021 and December 31, 2020, respectively.

For the three months ended September 30, 2021 and 2020, SLR Credit had net income of $5.4 million and $6.0 million, respectively, on gross income of $9.5 million

and $9.3 million, respectively.

For the nine months ended September 30, 2021 and 2020, SLR Credit had net income of $12.5 million and $16.3 million, respectively, on gross income of $27.2 million and $32.9 million,

respectively.

March 31, 2022 and December 31, 2021, respectively.

For the three months ended March 31, 2022 and 2021, SLR Credit had net income of $2.8 million and $4.9 million, respectively, on gross income of $6.7 million and

$9.7 million, respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in SLR Credits

funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us.

As such, and subject to fluctuations in

SLR Credits funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Credit will be able to maintain consistent dividend payments to us.

SLR Equipment Finance

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Effective February 25, 2021, Nations Equipment Finance, LLC and its related companies

is now known as SLR Equipment Finance (SLR Equipment).

is doing business as SLR Equipment Finance (SLR Equipment).

SLR Equipment is an independent equipment finance company that provides senior secured loans and leases primarily to U.S.

based companies.

We invested $209.9 million in cash to

effect the transaction, of which $145.0 million was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and $64.9 million was

used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC.

Concurrent with the transaction, SLR Equipment refinanced its existing senior secured credit facility into a $150.0 million

non-recourse facility with an accordion feature to expand up to $250.0 million.

In September 2019, SLR Equipment amended the facility, increasing commitments to $214.0 million with an accordion

feature to expand up to $314.0 million and extended the maturity date of the facility to July 31, 2023.

At July 31, 2017, SLR Equipment also had two securitizations outstanding, with an issued note balance of $94.6 million, which

were later redeemed in 2018.

As of September 30, 2021, SLR Equipment had 128 funded equipment-backed leases and loans to 58

different customers with a total net investment in leases and loans of approximately $201.4 million on total assets of $267.3 million.

As of December 31, 2020, SLR Equipment had 138 funded equipment-backed leases and loans to 61

different customers with a total net investment in leases and

loans of approximately $188.4 million on total assets of $263.4 million.

As of September 30, 2021 and December 31, 2020, the largest position outstanding totaled

$19.2 million and $25.1 million, respectively.

We invested $209.9 million in

cash to effect the transaction, of which $145.0 million was invested in the equity of SLR Equipment through our wholly-owned consolidated taxable subsidiary NEFCORP LLC and our wholly-owned consolidated subsidiary NEFPASS LLC and

$64.9 million was used to purchase certain leases and loans held by SLR Equipment through NEFPASS LLC.

Concurrent with the transaction, SLR Equipment refinanced its existing senior secured credit facility into a $150.0 million non-recourse facility with an accordion feature to expand up to $250.0 million.

In September 2019, SLR Equipment amended the facility, increasing commitments to $214.0 million with an accordion feature to

expand up to $314.0 million and extended the maturity date of the facility to July 31, 2023.

As of March 31, 2022, SLR

Equipment had 134 funded equipment-backed leases and loans to 59 different customers with a total net investment in leases and loans of approximately $198.6 million on total assets of $252.8 million.

As of December 31, 2021, SLR

Equipment had 135 funded equipment-backed leases and loans to 61 different customers with a total net investment in leases and loans of approximately $211.0 million on total assets of $264.0 million.

As of March 31, 2022 and

December 31, 2021, the largest position outstanding totaled $19.3 million and $19.2 million, respectively.

For the same periods, the average exposure per customer was $3.4 million and $3.5 million, respectively.

SLR Equipments credit facility, which is non-recourse to the Company, had approximately $108.3 million and $100.6 million of borrowings outstanding at September 30, 2021 and December 31, 2020, respectively.

For the three months ended

September 30, 2021 and 2020, SLR Equipment had net income (loss) of ($0.3) million and $1.5 million, respectively, on gross income of $5.8 million and $6.5 million, respectively.

For the nine months ended September 30,

2021 and 2020, SLR Equipment had net loss of $2.3 million and $0.4 million, respectively, on gross income of $16.4 million and $17.8 million, respectively.

Due to timing and non-cash

items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in SLR Equipments funded commitments, the timing of originations, and the repayments of financings, the

Company cannot guarantee that SLR Equipment will be able to maintain consistent dividend payments to us.

Equipments credit facility, which is non-recourse to the Company, had approximately $111.0 million and $118.0 million of borrowings outstanding at March 31, 2022 and December 31,

2021, respectively.

For the three months ended March 31, 2022 and 2021, SLR Equipment had net income (loss) of $0.6 million and ($0.3) million, respectively, on gross income of $5.2 million and $4.9 million,

respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in SLR Equipments

funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Equipment will be able to maintain consistent dividend payments to us.

Kingsbridge Holdings, LLC

On November 3, 2020, the Company acquired an 87.5% equity interest in Kingsbridge Holdings, LLC (KBH) through KBH Topco LLC

(KBHT), a newly formed Delaware corporation.

KBH is a residual focused independent mid-ticket lessor of equipment primarily to U.S.

November 3, 2020, the Company acquired 87.5% of Kingsbridge Holdings, LLC (KBH) through KBH Topco LLC (KBHT), a newly formed Delaware corporation.

KBH is a residual focused independent

mid-ticket lessor of equipment primarily to U.S.

investment grade companies.

The Company invested

$216.6 million to effect the transaction, of which $136.6 million was invested to acquire 87.5% of KBHTs equity and $80.0 million in KBHs debt.

The existing management team of KBH committed to continue to lead KBH

after the transaction.

Post the transaction, the Company owns 87.5% of KBHT equity and the KBH management team owns the remaining 12.5% of KBHTs equity.

As of September 30, 2021, KBHT had total assets of $734.6 million.

Recourse debt outstanding for KBHT totaled $196.2 million at

September 30, 2021.

Non-recourse debt outstanding for KBHT totaled $349.0 million at September 30, 2021.

As of December 31, 2020, KBHT had total assets of $744.7 million.

also had recourse debt outstanding of $219.0 million as well as non-recourse debt outstanding of $335.9 million at December 31, 2020.

For the three and nine months ended September 30,

2021, KBHT had net income of $3.2 million and $10.3 million, respectively, on gross income of $60.5 million and $180.1 million, respectively.

Due to timing and non-cash items, there

may be material differences between GAAP net income and cash available for distributions.

As such, and subject to fluctuations in KBHTs funded commitments, the timing of originations, and the repayments of financings, the Company cannot

guarantee that KBHT will be able to maintain consistent dividend payments to us.

The Company invested $216.6 million to effect the transaction, of which $136.6 million was invested to acquire 87.5%

of KBHTs equity and $80.0 million in KBHs debt.

The existing management team of KBH committed to continue to lead KBH after the transaction.

Following the transaction, the Company owns 87.5% of KBHT equity and the KBH

management team owns the remaining 12.5% of KBHTs equity.

As of March 31, 2022 and December 31, 2021, KBHT had total

assets of $729.4 million and $738.4 million, respectively.

For the same periods, debt recourse to KBHT totaled $221.4 million and $216.9 million, respectively, and non-recourse debt totaled

$321.2 million and $323.8 million, respectively.

None of the debt is recourse to the Company.

For the three months ended March 31, 2022 and 2021, KBHT had net income of $3.4 million and $2.3 million, respectively, on gross

income of $66.4 million and $58.1 million, respectively.

Due to timing and non-cash items, there may be material differences between GAAP net income and cash available for distributions.

such, and subject to fluctuations in KBHTs funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that KBHT will be able to maintain consistent dividend payments to us.

Critical Accounting Policies

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cash payments will be collected.

Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in managements

judgment, are likely to continue timely payment of their remaining interest or dividend obligations.

Interest or dividend cash payments received on investments may be recognized as income or

applied to principal depending upon managements judgment.

Some of our investments may have contractual PIK income.

PIK income is computed at the contractual rate, if applicable, and is accrued and reflected as a receivable up to the

capitalization date.

PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities.

When additional securities are received, they typically have the same terms, including maturity dates and

interest rates as the original securities issued.

On these payment dates, the Company capitalizes the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received).

PIK generally becomes due at

the maturity of the investment or upon the investment being called by the issuer.

At the point the Company believes PIK is not expected to be realized, the PIK investment will be placed on non-accrual status.

When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends is reversed from the related receivable through interest or dividend income, respectively.

does not reverse previously capitalized PIK income.

Upon capitalization, PIK is subject to the fair value estimates associated with their related investments.

PIK investments on non-accrual status are restored

to accrual status if the Company again believes that PIK is expected to be realized.

Loan origination fees, original issue discount, and market discounts are capitalized and amortized into income using the effective interest method.

prepayment of a loan, any unamortized loan origination fees are recorded as interest income.

We record prepayment premiums on loans and other investments as interest income when we receive such amounts.

Capital structuring fees are recorded as other

income when earned.

The typically higher yields and interest rates on PIK securities, to the extent we invested, reflects the payment

deferral and increased credit risk associated with such instruments and that such investments may represent a significantly higher credit risk than coupon loans.

PIK securities may have unreliable valuations because their continuing accruals require

continuing judgments about the collectability of the deferred payments and the value of any associated collateral.

Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in managements judgment, are likely to

continue timely payment of their remaining interest or dividend obligations.

Interest or dividend cash payments received on investments may be recognized as income or applied to principal depending upon managements judgment.

investments may have contractual PIK income.

PIK income computed at the contractual rate, as applicable, is accrued and reflected as a receivable up to the capitalization date.

PIK investments offer issuers the option at each payment date of making

payments in cash or in additional securities.

When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued.

On these payment dates, the Company capitalizes

the accrued interest or dividends receivable (reflecting such amounts as the basis in the additional securities received).

PIK generally becomes due at the maturity of the investment or upon the investment being called by the issuer.

the Company believes PIK is not expected to be realized, the PIK investment will be placed on non-accrual status.

When a PIK investment is placed on non-accrual status,

the accrued, uncapitalized interest or dividends is reversed from the related receivable through interest or dividend income, respectively.

The Company does not reverse previously capitalized PIK income.

Upon capitalization, PIK is subject to the

fair value estimates associated with their related investments.

PIK investments on non-accrual status are restored to accrual status if the Company again believes that PIK is expected to be realized.

origination fees, original issue discount, and market discounts are capitalized and amortized into income using the effective interest method.

Upon the prepayment of a loan, any unamortized loan origination fees are recorded as interest income.

record prepayment premiums on loans and other investments as interest income when we receive such amounts.

Capital structuring fees are recorded as other income when earned.

The typically higher yields and interest rates on PIK securities, to the extent we invested, reflects the payment deferral and increased

credit risk associated with such instruments and that such investments may represent a significantly higher credit risk than coupon loans.

PIK securities may have unreliable valuations because their continuing accruals require continuing judgments

about the collectability of the deferred payments and the value of any associated collateral.

PIK income has the effect of generating investment income and increasing the incentive fees payable at a compounding rate.

addition, the deferral of PIK income also increases the loan-to-value ratio at a compounding rate.

PIK securities create the risk that incentive fees will be paid to the

Investment Adviser based on non-cash accruals that ultimately may not be realized, but the Investment Adviser will be under no obligation to reimburse the Company for these fees.

For the three and nine months

ended September 30, 2021, capitalized PIK income totaled $1.7 million and $5.0 million, respectively.

For the three and nine months ended September 30, 2020, capitalized PIK income totaled $1.6 million and $3.0 million,

respectively.

In addition, the deferral of PIK

income also increases the loan-to-value ratio at a compounding rate.

PIK securities create the risk that incentive fees will be paid to the Investment Adviser based on non-cash accruals that ultimately may not be realized, but the Investment Adviser will be under no obligation to reimburse the Company for these fees.

For the three months ended March 31, 2022 and 2021,

capitalized PIK income totaled $0.7 million and $1.7 million, respectively.

Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss

4 unchanged sentences

Gains or losses on investments are calculated by using the specific identification

Investment Corp., a U.S.

corporation, has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code.

In order to qualify for U.S.

federal income taxation as a RIC, the Company is required, among other things, to

timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each year.

Depending on the level of taxable income earned in a given tax year, we may choose to carry forward taxable income in

excess of current year distributions into the next tax year and pay a nondeductible 4% U.S.

federal income taxation as a RIC, the Company is required, among other things, to timely distribute

to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each year.

Depending on the level of taxable income earned in a given tax year, we may choose to carry forward taxable income in excess of current

year distributions into the next tax year and pay a nondeductible 4% U.S.

federal excise tax on such income, as required.

To the extent that the Company determines that its estimated current year annual taxable income will be in

excess of estimated current year distributions, the Company accrues an estimated excise tax, if any, on estimated excess taxable income.

Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update

2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance 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.

ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022.

The Company is evaluating the potential impact that the adoption of this guidance will have on the Companys

financial statements.

To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated

current year distributions, the Company accrues an estimated excise tax, if any, on estimated excess taxable income.

Recent Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update No.

2020-04, Reference

Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance 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.

ASU 2020-04 is effective for all entities as

of March 12, 2020 through December 31, 2022.

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

RESULTS OF OPERATIONS

Results comparisons are for the three and nine months ended September 30, 2021 and September 30, 2020:

comparisons are for the three months ended March 31, 2022 and March 31, 2021:

Investment Income

For the three and nine

months ended September 30, 2021, gross investment income totaled $32.2 million and $103.6 million, respectively.

For the three and nine months ended September 30, 2020, gross investment income totaled $28.9 million and

$90.4 million, respectively.

The increase in gross investment income for the year over year three and nine month periods was primarily due to growth in the income producing portfolio.

For the three months ended March 31, 2022 and 2021, gross investment income totaled $33.0 million and $35.9 million,

respectively.

The decrease in gross investment income for the year over year three month periods was primarily due to a reduction in non-recurring fee and other miscellaneous income.

Expenses totaled

$17.2 million and $57.6 million, respectively, for the three and nine months ended September 30, 2021, of which $7.8 million and $29.3 million, respectively, were base management fees and performance-based incentive fees and

$19.5 million and $20.4 million, respectively, for the three months ended March 31, 2022 and 2021, of which $7.2 million and $10.7 million, respectively, were base management fees and performance-based incentive fees and

$8.3 million and $7.2 million, respectively, were interest and other credit facility expenses.

Other general and administrative expenses totaled $2.2 million and $6.8 million, respectively, for the three and nine months ended

September 30, 2021.

Expenses totaled $14.6 million and $46.1 million, respectively, for the three and nine months ended September 30, 2020, of which $6.2 million and $19.9 million, respectively, were base management

fees and performance-based incentive fees and $6.5 million and $20.2 million, respectively, were interest and other credit facility expenses.

Other general and administrative expenses totaled $1.9 million and $6.0 million,

respectively, for the three and nine months ended September 30, 2020.

Expenses generally consist of management and performance-based incentive fees, interest and other credit facility expenses, administrative services fees, insurance expenses,

legal fees, directors fees, transfer agency fees, printing and proxy expenses, audit and tax services expenses, and other general and administrative expenses.

Interest and other credit facility expenses generally consist of interest, unused

fees, agency fees and loan origination fees, if any, among others.

The increase in expenses for the three and nine months ended September 30, 2021 versus the three and nine months ended September 30, 2020 was primarily driven by a larger

income producing investment portfolio on average, which resulted in higher management and incentive fees as well as higher interest costs.

Investment Income

The Companys net investment income totaled $15.0 million and $46.0 million, or $0.36 and $1.09, per

average share, respectively, for the three and nine months ended September 30, 2021.

The Companys net investment income totaled $14.3 million and $44.3 million, or $0.34 and $1.05, per average share, respectively, for the three

and nine months ended September 30, 2020.

Administrative services and other general and administrative expenses totaled $4.0 million and $2.5 million, respectively, for the

three months ended March 31, 2022 and 2021.

Expenses generally consist of management and performance-based incentive fees, interest and other credit facility expenses, administrative services fees, insurance expenses, legal fees,

directors fees, transfer agency fees, printing and proxy expenses, audit and tax services expenses, and other general and administrative expenses.

Interest and other credit facility expenses generally consist of interest, unused fees, agency

fees and loan origination fees, if any, among others.

The decrease in expenses for the three months ended March 31, 2022 versus the three months ended March 31, 2021 was primarily due to the reduction in incentive fees.

offsetting the decrease were higher general and administrative expenses of approximately $1.5 million related to the Mergers.

Net Investment

The Companys net investment income totaled $13.5 million and $15.5 million, or $0.32 and $0.37, per average

share, respectively, for the three months ended March 31, 2022 and 2021.

Net Realized Gain (Loss)

The Company had investment sales and prepayments totaling approximately $101 million and $67 million, respectively, for the three

and nine months ended September 30, 2021.

months ended March 31, 2022 and 2021.

Net realized gains (losses) over the same periods were $0.03 million and ($0.4) million, respectively.

The Company had investment sales and prepayments totaling approximately $60 million and

$289 million, respectively, for the three and nine months ended September 30, 2020.

Net realized losses over the same periods were $0.3 million and $25.0 million, respectively.

Net realized losses for the three months ended

September 30, 2021 were generally related to the exit of our warrant position in Scynexis, Inc.

Net realized gains for the nine months ended September 30, 2021 were generally related to the exit of our warrant position in PQ Bypass, Inc.,

partially offset by losses from the sale of our legacy investment in B.

Riley Financial, Inc and exit of our warrant position in Scynexis, Inc.

Net realized losses for the three month period ended September 30, 2020 was primarily related to the

termination of warrants.

Net realized losses for the nine month period ended September 30, 2020 were primarily related to the exit of our investment in IHS Intermediate, Inc.

Net realized gain for the three months ended March 31, 2022 was de minimis.

losses for the three months ended March 31, 2021 were generally related to the sale of our legacy investment in B.

Riley Financial, Inc.

Net Change in Unrealized Gain (Loss)

the three and nine months ended September 30, 2021, net change in unrealized gain (loss) on the Companys assets and liabilities totaled ($1.5) million and $7.4 million, respectively.

For the three and nine months ended

September 30, 2020, net change in unrealized gain (loss) on the Companys assets and liabilities totaled $4.6 million and ($22.1) million, respectively.

Net unrealized loss for the three months ended September 30, 2021 is

primarily due to depreciation in the value of our investments in American Teleconferencing Services, Ltd., PhyMed Management LLC and Rug Doctor, among others, partially offset by appreciation in the value of our investments in KBH Topco, LLC and SLR

Credit Solutions, among others.

Net unrealized gain for the nine months ended September 30, 2021 was primarily due to appreciation in the value our investments in KBH Topco, LLC, SLR Credit Solutions, and Senseonics Holdings, Inc., among

others, partially offset by depreciation in the value of our investments in American Teleconferencing Services, Ltd., Rug Doctor and SOAGG, LLC, among others.

Net unrealized gain for the three months ended September 30, 2020 is primarily due to

appreciation in the value of our investments in NEF Holdings LLC, Crystal Financial LLC and PhyMed Management LLC, among others, partially offset by appreciation on our 2022 Unsecured Notes.

Net unrealized loss for the nine months ended

September 30, 2020 is primarily due to depreciation in the value of our investments in NEF Holdings LLC, Rug

Doctor, Crystal Financial LLC, PhyMed Management LLC and Bishop Lifting Products, Inc., among others, partially offset by the reversal of previously recognized unrealized depreciation in the

value of our investment in IHS Intermediate, Inc.

as well as depreciation on our 2022 Unsecured Notes.

Net Increase (Decrease) in Net Assets From

For the three and nine months ended September 30, 2021, the Company had a net increase in net assets resulting from

operations of $13.4 million and $53.4 million, respectively.

For the three months ended March 31, 2022 and 2021, net change in unrealized gain (loss) on the Companys assets and liabilities

totaled ($12.0) million and $6.4 million, respectively.

Net unrealized loss for the three months ended March 31, 2022 is primarily due to depreciation in the value of our investments in PhyMed Management LLC and Rug Doctor LLC, among

others, partially offset by appreciation in the value of our investments in KBH Topco, LLC, SOC Telemed, Inc.

and Cerapedics, Inc., among others.

Net unrealized gain for the three months ended March 31, 2021 is primarily due to the reversal of

previously recognized depreciation in our investment in B.

Riley Financial, Inc.

as well as appreciation in the value of our investments in Genmark Diagnostics, Inc., SLR Credit and Senseonics Holdings, Inc., among others, partially offset by the

reversal of previously recognized appreciation in our investment in Cardiva Medical, Inc.

as well as depreciation in the value of our investment in SOAGG, LLC, among others.

Net Increase in Net Assets From Operations

For the three months ended March 31, 2022 and 2021, the Company had a net increase in net assets resulting from operations of

$1.5 million and $21.5 million, respectively.

For the same periods, earnings per average share were $0.04 and $0.51, respectively.

For the three and nine months ended September 30, 2020, the Company had a net increase

(decrease) in net assets resulting from operations of $18.6 million and ($2.8) million, respectively.

For the same periods, earnings (loss) per average share were $0.44 and ($0.07), respectively.

LIQUIDITY AND CAPITAL RESOURCES

Companys liquidity and capital resources are generated and generally available through its Credit Facility, the 2022 Unsecured Notes, the 2022 Tranche C Notes, the NEFPASS Facility, the 2023 Unsecured Notes, the 2024 Unsecured Notes, the 2026

Unsecured Notes and the 2027 Unsecured Notes (collectively the Credit Facilities), through cash flows from operations, investment sales, prepayments of senior and subordinated loans, income earned on investments and cash equivalents, and

periodic follow-on equity and/or debt offerings.

As of September 30, 2021, we had a total of $448.3 million of unused borrowing capacity under the Credit Facilities, subject to borrowing base limits.

We may from time to time issue equity and/or debt securities in either public or private offerings.

The issuance of such securities will

depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful.

The primary uses of existing funds and any funds raised in the future is expected to be for

investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders, or for other general corporate purposes.

On September 14, 2021, the Company closed a private offering of $50,000 of the 2027 Unsecured Notes with a fixed interest rate of 2.95%

and a maturity date of March 14, 2027.

AND CAPITAL RESOURCES

The Companys liquidity and capital resources are generated and generally available through its Credit

Facility (as defined below), the 2022 Unsecured Notes, the 2022 Tranche C Notes, the 2023 Unsecured Notes, the 2024 Unsecured Notes, the 2026 Unsecured Notes, the 2027 Unsecured Notes and the 2027 Series F Unsecured Notes, through cash flows from

operations, investment sales, prepayments of senior and subordinated loans, income earned on investments and cash equivalents, and periodic follow-on equity and/or debt offerings.

As of March 31, 2022, we

had a total of $516.0 million of unused borrowing capacity under the Credit Facility, subject to borrowing base limits.

time to time issue equity and/or debt securities in either public or private offerings.

The issuance of such securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance

will occur or be successful.

The primary uses of existing funds and any funds raised in the future is expected to be for investments in portfolio companies, repayment of indebtedness, cash distributions to our stockholders, or for other general

corporate purposes.

On January 6, 2022, the Company closed a private offering of $135 million of the 2027 Series F Unsecured

Notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027.

Interest on the 2027 Series F Unsecured Notes is due semi-annually on January 6 and July 6.

The 2027 Series F Unsecured Notes were issued in a private

placement only to qualified institutional buyers.

On December 28, 2021, the Company closed on Amendment No.

August 28, 2019 senior secured credit agreement (the Credit Facility).

Following the amendment, the Credit Facility is composed of $600 million of revolving credit and $100 million of term loans.

Borrowings generally bear

interest at a rate per annum equal to the base rate plus a range of 1.75%-2.00% or the alternate base rate plus 0.75%-1.00%.

The Credit Facility has a 0% floor and

matures in December 2026 and includes ratable amortization in the final year.

On September 14, 2021, the Company closed a private

offering of $50 million of the 2027 Unsecured Notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027.

Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14.

The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On February 12, 2020, a new lender to the Company executed a commitment increase to our Credit Facility providing for an additional

$75.0 million of revolving credit, bringing our Credit Facilitys total revolving credit capacity to $545.0 million.

December 18, 2019, the Company closed a private offering of $125 million of the 2024 Unsecured Notes with a fixed interest rate of 4.20% and a maturity date of December 15, 2024.

Interest on the 2024 Unsecured Notes is due

semi-annually on June 15 and December 15.

The 2024 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private offering of $75 million of the 2026 Unsecured Notes with a fixed interest rate of

4.375% and a maturity date of December 15, 2026.

The 2027 Unsecured

Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private

offering of $125 million of the 2024 Unsecured Notes with a fixed interest rate of 4.20% and a maturity date of December 15, 2024.

Interest on the 2024 Unsecured Notes is due semi-annually on June 15 and December 15.

The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On August 28, 2019, the Company repaid its existing senior secured credit agreement due September 2021 and entered into the new senior

secured credit agreement (the Credit Facility).

The Credit Facility was originally composed of $470 million of revolving credit and $75 million of term loans.

Borrowings generally bear interest at a rate per annum equal to the

base rate plus a range of 2.00-2.25% or the alternate base rate plus 1.00%-1.25%.

The Credit Facility has no LIBOR floor requirement.

The Credit Facility matures in

August 2024 and includes ratable amortization in the final year.

On December 28, 2017, the Company closed a private offering of

$21 million of the 2022 Tranche C Notes with a fixed interest rate of 4.50% and a maturity date of December 28, 2022.

Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed

a private offering of $75 million of the 2026 Unsecured Notes with a fixed interest rate of 4.375% and a maturity date of December 15, 2026.

Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15.

2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 28, 2017, the Company

closed a private offering of $21 million of the 2022 Tranche C Notes with a fixed interest rate of 4.50% and a maturity date of December 28, 2022.

Interest on the 2022 Tranche C Notes is due semi-annually on June 28 and December 28.

The 2022 Tranche C Notes were

issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75 million in aggregate

principal amount of publicly registered 2023 Unsecured Notes for net proceeds of $73.8 million.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on

January 20, 2018.

The 2022 Tranche C Notes were issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued

$75 million in aggregate principal amount of publicly registered 2023 Unsecured Notes for net proceeds of $73.8 million.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of

4.50% per year, commencing on January 20, 2018.

The 2023 Unsecured Notes mature on January 20, 2023.

On February 15, 2017, the Company closed a private

offering of $100 million of the 2022 Unsecured Notes with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured

Notes were issued in a private placement only to qualified institutional buyers.

On November 8, 2016, the Company closed a private

offering of $50 million of the 2022 Unsecured Notes with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

On February 15, 2017,

the Company closed a private offering of $100 million of the 2022 Unsecured Notes with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and

The 2022 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On November 8, 2016, the Company closed a private offering of $50 million of the

2022 Unsecured Notes with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured

Notes were issued in a private placement only to qualified institutional buyers.

On January 11, 2013, the Company closed its most recent

follow-on public equity offering of 6.3 million shares of common stock raising approximately $146.9 million in net proceeds.

The 2022 Unsecured Notes were issued in a private

placement only to qualified institutional buyers.

On January 11, 2013, the Company closed its most recent follow-on public equity offering of 6.3 million shares of common stock raising approximately $146.9 million in net proceeds.

The primary uses of the funds raised were for investments in portfolio

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quarter and typically close out the position on a net cash basis subsequent to quarter end.

We may also utilize repurchase agreements or other balance sheet transactions, including drawing down on our credit facilities, as deemed appropriate.

We may also utilize repurchase agreements or other balance sheet transactions, including drawing down on the Credit Facility, as deemed appropriate.

amount of these transactions or such drawn cash for this purpose is excluded from total assets for purposes of computing the asset base upon which the management fee is determined.

We held approximately $580 million in cash equivalents as of

September 30, 2021.

March 31, 2022.

Unsecured Notes

September 14, 2021, the Company closed a private offering of $50,000 of the 2027 Unsecured Notes with a fixed interest rate of 2.95% and a maturity date of March 14, 2027.

Interest on the 2027 Unsecured Notes is due semi-annually on

March 14 and September 14.

The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

December 18, 2019, the Company closed a private offering of $125 million of the 2024 Unsecured Notes with a fixed interest rate of 4.20% and a maturity date of December 15, 2024.

Interest on the 2024 Unsecured Notes is due

semi-annually on June 15 and December 15.

January 6, 2022, the Company closed a private offering of $135 million of the 2027 Series F Unsecured Notes with a fixed interest rate of 3.33% and a maturity date of January 6, 2027.

Interest on the 2027 Series F Unsecured Notes is

due semi-annually on January 6 and July 6.

The 2027 Series F Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On September 14, 2021, the Company closed a private offering of $50 million of the 2027 Unsecured Notes with a fixed interest rate

of 2.95% and a maturity date of March 14, 2027.

Interest on the 2027 Unsecured Notes is due semi-annually on March 14 and September 14.

The 2027 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 18, 2019, the Company closed a private offering of $75 million of the 2026 Unsecured Notes with a fixed interest rate of

4.375% and a maturity date of December 15, 2026.

On December 18, 2019, the Company closed a private offering of $125 million of the 2024 Unsecured Notes with a fixed interest

rate of 4.20% and a maturity date of December 15, 2024.

Interest on the 2024 Unsecured Notes is due semi-annually on June 15 and December 15.

The 2026 Unsecured Notes were issued in a private placement only to qualified institutional buyers.

On December 28, 2017, the Company closed a private offering of $21 million of the 2022 Tranche C Notes with a fixed interest rate of

4.50% and a maturity date of December 28, 2022.

The 2024 Unsecured Notes were issued in a private placement only to qualified institutional

On December 18, 2019, the Company closed a private offering of $75 million of the 2026 Unsecured Notes with a fixed

interest rate of 4.375% and a maturity date of December 15, 2026.

Interest on the 2026 Unsecured Notes is due semi-annually on June 15 and December 15.

The 2026 Unsecured Notes were issued in a private placement only to qualified

institutional buyers.

On December 28, 2017, the Company closed a private offering of $21 million of the 2022 Tranche C Notes

with a fixed interest rate of 4.50% and a maturity date of December 28, 2022.

Interest on the 2022 Tranche C Notes is due semi-annually on June 28 and December 28.

The 2022 Tranche C Notes were issued in a private placement only to qualified institutional buyers.

On November 22, 2017, we issued $75 million in aggregate principal amount of publicly registered 2023 Unsecured Notes for net

proceeds of $73.8 million.

The 2022 Tranche C Notes were issued in a private placement only to

qualified institutional buyers.

On November 22, 2017, we issued $75 million in aggregate principal amount of publicly

registered 2023 Unsecured Notes for net proceeds of $73.8 million.

Interest on the 2023 Unsecured Notes is paid semi-annually on January 20 and July 20, at a fixed rate of 4.50% per year, commencing on January 20, 2018.

The 2023 Unsecured Notes mature on

January 20, 2023.

On February 15, 2017, the Company closed a private offering of $100 million of the 2022 Unsecured Notes

with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

Unsecured Notes mature on January 20, 2023.

On February 15, 2017, the Company closed a private offering of $100 million of

the 2022 Unsecured Notes with a fixed interest rate of 4.60% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were issued in a private placement only to qualified

institutional buyers.

On November 8, 2016, the Company closed a private offering of $50 million of the 2022 Unsecured Notes

with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

The 2022 Unsecured Notes were issued in a private

placement only to qualified institutional buyers.

On November 8, 2016, the Company closed a private offering of $50 million of

the 2022 Unsecured Notes with a fixed interest rate of 4.40% and a maturity date of May 8, 2022.

Interest on the 2022 Unsecured Notes is due semi-annually on May 8 and November 8.

The 2022 Unsecured Notes were issued in a private placement only to qualified

institutional buyers.

Revolving & Term Loan Facilities

On August 28, 2019, the Company repaid its existing senior secured credit agreement due September 2021 and entered into the new Credit

The Credit Facility was originally composed of $470 million of revolving credit and $75 million of term loans.

On February 12, 2020, a new lender to the Company executed a commitment increase to our Credit Facility providing

for an additional $75.0 million of revolving credit, bringing our Credit Facilitys total revolving credit capacity to $545.0 million.

Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of 2.00-2.25% or the alternate base rate plus 1.00%-1.25%.

The Credit Facility has no LIBOR floor requirement.

The Credit Facility matures in August 2024 and includes ratable

amortization in the final year.

The Credit Facility may be increased up to $800 million with additional new lenders or an increase in commitments from current lenders.

The Credit Facility contains certain customary affirmative and negative

covenants and events of default.

In addition, the Credit Facility contains certain financial covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset coverage ratio.

September 30, 2021, outstanding USD equivalent borrowings under the Credit Facility totaled $193.5 million, composed of $118.5 million of revolving credit and $75.0 million of term loans.

On September 26, 2018, NEFPASS SPV LLC, a newly formed wholly-owned subsidiary of

NEFPASS LLC, as borrower entered into the NEFPASS Facility with Keybank acting as administrative agent.

The Company acts as servicer under the NEFPASS Facility.

The NEFPASS Facility is scheduled to mature on September 26, 2023.

Facility generally bears interest at a rate of LIBOR plus 2.15%.

NEFPASS and NEFPASS SPV LLC, as applicable, have made certain customary representations and warranties, and are required to comply with various covenants, including leverage

restrictions, reporting requirements and other customary requirements for similar credit facilities.

The NEFPASS Facility also includes usual and customary events of default for credit facilities of this nature.

There were $28.2 million of

borrowings outstanding as of September 30, 2021.

Certain covenants on our issued debt may restrict our business activities,

including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

At September 30, 2021, the Company was in

compliance with all financial and operational covenants required by our Credit Facilities.

The 2022 Unsecured Notes were issued in a private

placement only to qualified institutional buyers.

Revolving & Term Loan Facility

On December 28, 2021, the Company closed on Amendment No.

1 to the Credit Facility.

Following the amendment, the Credit Facility is

composed of $600 million of revolving credit and $100 million of term loans.

Borrowings generally bear interest at a rate per annum equal to the base rate plus a range of 1.75%-2.00% or the alternate

base rate plus 0.75%-1.00%.

The Credit Facility has a 0% floor and matures in December 2026 and includes ratable amortization in the final year.

The Credit Facility may be increased up to $800 million

with additional new lenders or an increase in commitments from current lenders.

The Credit Facility contains certain customary affirmative and negative covenants and events of default.

In addition, the Credit Facility contains certain financial

covenants that among other things, requires the Company to maintain a minimum shareholders equity and a minimum asset coverage ratio.

At March 31, 2022, outstanding USD equivalent borrowings under the Credit Facility totaled

$184.0 million, composed of $84.0 million of revolving credit and $100.0 million of term loans.

Certain covenants on our issued debt may restrict our business activities, including

limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a RIC under Subchapter M of the Code.

At March 31, 2022, the Company was in compliance with

all financial and operational covenants required by the Debt Instruments.

Contractual Obligations

A summary of our significant contractual payment obligations is as follows as of September 30, 2021:

A summary of our significant contractual payment obligations is as follows as of March 31, 2022:

Payments Due by Period (in millions)

Revolving credit facilities(1)

Revolving credit facility (1)

Unsecured senior notes

As of September 30, 2021, we had a total of $448.3 million of unused borrowing capacity under our

As of March 31, 2022, we had a total of $516.0 million of unused borrowing capacity under our

revolving credit facilities, subject to borrowing base limits.

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we would also be exposed to typical risks associated with leverage, including an increased risk of loss.

We have also entered into two

contracts under which we have future commitments:

the Advisory Agreement, pursuant to which the Investment Adviser has agreed to serve as our investment adviser, and the Administration Agreement, pursuant to which the Administrator has agreed to

furnish us with the facilities and administrative services necessary to conduct our day-to-day operations and provide on our behalf managerial assistance to those

portfolio companies to which we are required to provide such assistance.

Payments under the Advisory Agreement are equal to (1) a percentage of the value of our average gross assets and (2) a

two-part incentive fee.

Payments under the Administration Agreement are equal to an amount based upon our allocable portion of the Administrators overhead in performing its obligations under the

Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of our chief financial officer and chief compliance officer and their respective staffs.

Either party may terminate each of the

Advisory Agreement and administration agreement without penalty upon 60 days written notice to the other.

See note 3 to our Consolidated Financial Statements.

On July 31, 2017, the Company, NEFPASS LLC and NEFCORP LLC entered into a servicing agreement.

NEFCORP LLC was engaged to provide NEFPASS

LLC with administrative services related to the loans and capital leases held by NEFPASS LLC.

NEFPASS LLC may terminate this agreement upon 30 days written notice to NEFCORP LLC.

Senior Securities

Information about our senior securities is shown in the following table (in thousands) as of the quarter ended September 30,

2021 and each year ended December 31 for the past ten years, unless otherwise noted.

Information about our senior securities is shown in the following table (in thousands) as of the quarter ended March 31, 2022 and each

year ended December 31 for the past ten years, unless otherwise noted.

The indicates information which the SEC expressly does not require to be disclosed for certain types of senior securities.

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Revolving Credit Facility

Fiscal 2021 (through September 30, 2021)

Class and Year

Outstanding(1)

Fiscal 2022 (through March 31, 2022)

2022 Unsecured Notes

Fiscal 2021 (through September 30, 2021)

Fiscal 2022 (through March 31, 2022)

2022 Tranche C Notes

Fiscal 2021 (through September 30, 2021)

Fiscal 2022 (through March 31, 2022)

2023 Unsecured Notes

Fiscal 2021 (through September 30, 2021)

Fiscal 2022 (through March 31, 2022)

2024 Unsecured Notes

Fiscal 2021 (through September 30, 2021)

Fiscal 2022 (through March 31, 2022)

2026 Unsecured Notes

Fiscal 2021 (through September 30, 2021)

Fiscal 2022 (through March 31, 2022)

2027 Unsecured Notes

Fiscal 2021 (through September 30, 2021)

Fiscal 2022 (through March 31, 2022)

2027 Series F Unsecured Notes

Fiscal 2022 (through March 31, 2022)

2042 Unsecured Notes

Senior Secured Notes

Fiscal 2021 (through September 30, 2021)

Class and Year

Outstanding(1)

Fiscal 2022 (through March 31, 2022)

NEFPASS Facility

Fiscal 2021 (through September 30, 2021)

SSLP Facility

Total Senior Securities

Fiscal 2021 (through September 30, 2021)

Fiscal 2022 (through March 31, 2022)

Total amount of each class of senior securities outstanding (in thousands) at the end of the period presented.

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In order to determine the specific Asset Coverage Per Unit for each class of debt, the total Asset Coverage Per Unit is allocated based on the amount outstanding in each class of debt at the end of the period.

September 30, 2021, asset coverage was 218.9%.

As of March 31,

2022, asset coverage was 201.4%.

The amount to which such class of senior security would be entitled upon the involuntary liquidation of the

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The average market value for the fiscal 2016, 2015, 2014, 2013 and 2012 periods was $100,175, $98,196, $94,301, $93,392, and $92,302, respectively.

We have also entered into two contracts under which we have future commitments:

the Advisory Agreement, pursuant to which SLR Capital

Partners, LLC has agreed to serve as our investment adviser, and the Administration Agreement, pursuant to which the Administrator has agreed to furnish us with the facilities and administrative services necessary to conduct our day-to-day operations and provide on our behalf managerial assistance to those portfolio companies to which we are required to provide such assistance.

Payments under the

Advisory Agreement are equal to (1) a percentage of the value of our average gross assets and (2) a two-part incentive fee.

Payments under the Administration Agreement are equal to an amount based

upon our allocable portion of the Administrators overhead in performing its obligations under the Administration Agreement, including rent, technology systems, insurance and our allocable portion of the costs of our chief financial

officer and chief compliance officer and their respective staffs.

Either party may terminate each of the Advisory Agreement and administration agreement without penalty upon 60 days written notice to the other.

See note 3 to our

Consolidated Financial Statements.

On July 31, 2017, the Company, NEFPASS LLC and NEFCORP LLC entered into a servicing agreement.

NEFCORP LLC was engaged to provide NEFPASS LLC with administrative services related to the loans and capital leases held by NEFPASS LLC.

NEFPASS LLC may terminate this agreement upon 30 days written notice to NEFCORP LLC.

Off-Balance Sheet Arrangements

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These unfunded capital

commitments always take into account the Companys liquidity and cash available for investment, prudent portfolio management of issuer diversification, and other considerations.

Accordingly, the Company had the following unfunded capital

commitments at September 30, 2021 and December 31, 2020, respectively:

September 30,

commitments always take into account the Companys liquidity and cash available for investment, portfolio and issuer diversification, and other considerations.

Accordingly, the Company had the following unfunded capital commitments at

March 31, 2022 and December 31, 2021, respectively:

(in millions)

SLR Credit Solutions*

NAC Holdings Corporation

Arcutis Biotherapeutics, Inc.

BridgeBio Pharma, Inc.

CC SAG Holdings Corp.

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Inszone Mid, LLC

Smile Doctors LLC

SOC Telemed, Inc.

Stryten Energy LLC

Vapotherm, Inc.

Ardelyx, Inc.

One Touch Direct, LLC

Rezolute, Inc.

SLR Equipment Finance

Neuronetics, Inc.

Ivy Fertility Services, LLC

SOC Telemed, Inc.

Maurices, Incorporated

NAC Holdings Corporation

Atria Wealth Solutions, Inc.

Rezolute, Inc.

Basic Fun, Inc.

Kid Distro Holdings, LLC

1 unchanged sentence

Foundation Consumer Brands, LLC

Ultimate Baked Goods Midco LLC

Basic Fun, Inc.

Pinnacle Treatment Centers, Inc.

SunMed Group Holdings, LLC

Soleo Health Holdings, Inc.

Cardiva Medical, Inc.

Kindred Biosciences, Inc.

PQ Bypass, Inc.

Centrexion Therapeutics, Inc.

Sentry Data Systems, Inc.

Delphinus Medical Technologies, Inc.

SLR Equipment Finance

Pinnacle Treatment Centers, Inc.

American Teleconferencing Services, Ltd.

Ultimate Baked Goods Midco LLC

Neuronetics, Inc.

Total Commitments

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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.

March 31, 2022 and December 31, 2021, the Company had sufficient cash available and/or liquid securities available to fund its commitments and had reviewed them for any appropriate fair value adjustment.

In the normal course of its business, we invest or trade in various financial instruments and may enter into various investment activities

8 unchanged sentences

Date Declared

November 3, 2021

December 16, 2021

January 5, 2022

August 3, 2021

September 23, 2021

October 5, 2021

June 23, 2021

February 24, 2021

April 4, 2022

April 21, 2022

March 1, 2022

March 18, 2022

April 1, 2022

21 unchanged sentences

calendar year.

Future quarterly distributions, if any, will be determined by our Board.

Future quarterly distributions, if any, will be determined by the Board.

We expect that our distributions to stockholders will generally be from accumulated net investment income, from net realized capital gains or non-taxable return of capital, if any, as applicable.

14 unchanged sentences

in the future be limited in our ability to make distributions.

Also, our revolving credit facility may limit our ability to declare distributions if we default under certain provisions.

If we do not distribute a certain percentage of our income

annually, we will suffer adverse tax consequences, including possible loss of the tax benefits available to us as a regulated investment company.

In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we

have not yet received in cash, such as contractual payment-in-kind income, which represents contractual income added to the loan balance that becomes due at the end of

the loan term, or the accrual of original issue or market discount.

Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment

company taxable income to obtain tax benefits as a regulated investment company.

With respect to the distributions to stockholders,

income from origination, structuring, closing and certain other upfront fees associated with investments in portfolio companies are treated as taxable income and accordingly, distributed to stockholders.

Also, the Credit Facility may limit our ability to declare distributions if we default under certain provisions.

If we do not distribute a certain percentage of our income annually, we

will suffer adverse tax consequences, including possible loss of the tax benefits available to us as a regulated investment company.

In addition, in accordance with GAAP and tax regulations, we include in income certain amounts that we have not yet

received in cash, such as contractual payment-in-kind income, which represents contractual income added to the loan balance that becomes due at the end of the loan term,

or the accrual of original issue or market discount.

Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable

income to obtain tax benefits as a regulated investment company.

With respect to the distributions to stockholders, income from

origination, structuring, closing and certain other upfront fees associated with investments in portfolio companies are treated as taxable income and accordingly, distributed to stockholders.

Related Parties

1 unchanged sentence

number of business relationships with affiliated or related parties, including the following:

We have entered into the Advisory Agreement with SLR Capital Partners.

We have entered into the Advisory Agreement with the Investment Adviser.

Gross, our Chairman, Co-Chief Executive Officer and President and Mr.

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In addition, Mr.

Peteka, our Chief Financial Officer, Treasurer and Secretary serves as the Chief Financial Officer for SLR Capital Partners.

Peteka, our Chief Financial Officer, Treasurer and Secretary serves as the Chief Financial Officer for the Investment

The Administrator provides us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our Administration Agreement.

4 unchanged sentences

has granted us a non-exclusive, royalty-free license to use the licensed marks SOLAR and SLR.

The Investment Adviser may also manage other funds in the future that may have investment mandates that are similar, in whole and in part,

For example, the Investment Adviser presently serves as investment adviser to SLR Senior Investment Corp., a publicly traded BDC, which focuses on investing in senior secured loans, including first lien and second lien debt instruments,

as well as SCP Private Credit Income BDC LLC, an unlisted BDC that focuses on investing primarily in senior secured loans, including non-traditional asset-based loans and first lien loans and SLR HC BDC LLC,

an unlisted BDC whose principal focus is to invest directly and indirectly in senior secured loans and other debt instruments typically to middle market companies within the healthcare industry.

The Investment Adviser may also manage other funds in the future that may have investment

mandates that are similar, in whole and in part, with ours.

For example, the Investment Adviser presently serves as investment adviser to SCP Private Credit Income BDC LLC, an unlisted BDC that focuses on investing primarily in senior secured loans,

including non-traditional asset-based loans and first lien loans and SLR HC BDC LLC, an unlisted BDC whose principal focus is to invest directly and indirectly in senior secured loans and other debt

instruments typically to middle market companies within the healthcare industry.

In addition, Michael S.

Gross, our Chairman, Co-Chief Executive Officer and President, Bruce Spohler, our Co-Chief Executive Officer and Chief Operating Officer, and Richard L.

Peteka, our Chief Financial Officer, serve

in similar capacities for SLR Senior Investment Corp., SCP Private Credit Income BDC LLC and SLR HC BDC LLC.

The Investment Adviser and certain investment advisory affiliates may determine that an investment is appropriate for us and for one or more

of those other funds.

In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that we should invest side-by-side with one or more other funds.

Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the

Investment Advisers allocation procedures.

On June 13, 2017, the Adviser received an exemptive order that permits the Company to participate in negotiated co-investment transactions with certain

affiliates, in a manner consistent with the Companys investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, and pursuant to various conditions (the

If the Company is unable to rely on the Order for a particular opportunity, such opportunity will be allocated first to the entity whose investment strategy is the most consistent with the opportunity being allocated, and second,

if the terms of the opportunity are consistent with more than one entitys investment strategy, on an alternating basis.

Although the Advisers investment professionals will endeavor to allocate investment opportunities in a fair and

equitable manner, the Company and its stockholders could be adversely affected to the extent investment opportunities are allocated among us and other investment vehicles managed or sponsored by, or affiliated with, our executive officers, directors

and members of the Adviser.

Related party transactions may occur among SLR Investment Corp., SLR Credit Solutions, Equipment Operating

Leases LLC, Kingsbridge Holdings, LLC, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL and SLR Equipment Finance.

Peteka, our Chief Financial Officer, serve in similar capacities for SCP Private Credit Income BDC LLC and SLR HC BDC LLC.

The Investment

Adviser and certain investment advisory affiliates may determine that an investment is appropriate for us and for one or more of those other funds.

In such event, depending on the availability of such investment and other appropriate factors, the

Investment Adviser or its affiliates may determine that we should invest side-by-side with one or more other funds.

Any such investments will be made only to the extent

permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the Investment Advisers allocation procedures.

On June 13, 2017, the Adviser received an exemptive order that permits the Company to

participate in negotiated co-investment transactions with certain affiliates, in a manner consistent with the Companys investment objective, positions, policies, strategies and restrictions as

well as regulatory requirements and other pertinent factors, and pursuant to various conditions (the Order).

If the Company is unable to rely on the Order for a particular opportunity, such opportunity will be allocated first to the

entity whose investment strategy is the most consistent with the opportunity being allocated, and second, if the terms of the opportunity are consistent with more than one entitys investment strategy, on an alternating basis.

Advisers investment professionals will endeavor to allocate investment opportunities in a fair and equitable manner, the Company and its stockholders could be adversely affected to the extent investment opportunities are allocated among us and

other investment vehicles managed or sponsored by, or affiliated with, our executive officers, directors and members of the Adviser.

Related party transactions may occur among us, SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business Credit, SLR

Healthcare ABL and SLR Equipment.

These transactions may occur in the normal course of business.

No administrative or other fees are paid to SLR Capital

Partners by SLR Credit Solutions, Equipment Operating Leases LLC, Kingsbridge Holdings, LLC, Loyer Capital LLC, SLR Business Credit, SLR Healthcare ABL or SLR Equipment Finance.

In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors.

Our officers and directors also

remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.

No administrative or other fees are paid to the Investment Adviser by SLR Credit, Equipment Operating Leases LLC, KBH, Loyer Capital LLC, SLR Business

Credit, SLR Healthcare ABL or SLR Equipment.

In addition, we have adopted a formal code of ethics that governs the conduct of our

officers and directors.

Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.

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