What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-11-07 compared with 2023-08-08 · 365 added, 375 removed, 1697 unchanged (30% of the section changed)

3 unchanged sentences

(in thousands, except share amounts)

June 30, 2023

September 30,

2023 (unaudited)

Investments at fair value:

32 unchanged sentences

Three months ended

Six months ended

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Nine months ended

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

INVESTMENT INCOME:

16 unchanged sentences

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

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

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

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

2 unchanged sentences

Companies more than 25% owned

Net change in unrealized loss on investments and cash equivalents

Net realized and unrealized loss on investments and cash equivalents

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

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

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

5 unchanged sentences

Three months ended

Six months ended

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Nine months ended

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

Increase (decrease) in net assets resulting from operations:

Net investment income

Net realized gain (loss)

Net change in unrealized loss

Net realized loss

Net change in unrealized gain (loss)

Net increase (decrease) in net assets resulting from operations

20 unchanged sentences

(in thousands)

Six months ended

June 30, 2023

June 30, 2022

Nine months ended

September 30, 2023

September 30, 2022

Cash Flows from Operating Activities:

Net increase (decrease) in net assets resulting from

Adjustments to reconcile net increase (decrease) 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 loss on investments

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

Net realized loss on investments and cash equivalents

Net change in unrealized (gain) loss on investments

Deferred financing costs/market discount

(Increase) decrease in operating assets:

8 unchanged sentences

Prepaid expenses and other assets

Cash acquired in merger

Cash acquired in the Mergers

Increase (decrease) in operating liabilities:

5 unchanged sentences

Other liabilities and accrued expenses

Deferred financing costs/market discount

Net Cash Provided by (Used in) Operating Activities

Net Cash Used in Operating Activities

Cash Flows from Financing Activities:

5 unchanged sentences

Repurchase of common stock

Net Cash Provided by (Used in) Financing Activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Net Cash Provided by Financing Activities

NET DECREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

2 unchanged sentences

Cash paid for interest

Issuance of shares in connection with the Merger(1)

On April 1, 2022, in connection with the Merger (as defined in Note 1 “Organization”), the Company acquired net assets of $ 244,691 for the total stock consideration of $ 226,839 .

Issuance of shares in connection with the Mergers (1)

On April 1, 2022, in connection with the Mergers (as defined in Note 1 “Organization”), the Company acquired net assets of $ 244,691 for the total stock consideration of $ 226,839 .

See notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited)

June 30, 2023

September 30, 2023

(in thousands, except share/unit amounts)

1 unchanged sentence

First Lien Bank Debt/Senior Secured Loans

Accession Risk Management Group, Inc.

(f/k/a RSC Acquisition, Inc.) (16)

Aegis Toxicology Sciences Corporation(16)

Health Care Providers & Services

All State Ag Parts, LLC(16)

Alkeme Intermediary Holdings, LLC

All States Ag Parts, LLC(16)

Trading Companies & Distributors

American Teleconferencing Services, Ltd.**

Communications Equipment

American Teleconferencing Services, Ltd.**

Communications Equipment

AmeriMark Intermediate Holdings, LLC(14)(27)

Internet & Catalog Retail

AmeriMark Intermediate Holdings, LLC(14)(27)**

Internet & Catalog Retail

Apex Services Partners, LLC(16)

18 unchanged sentences

Building Products

Copper River Seafoods, Inc.

Food Products

CVAUSA Management, LLC

Health Care Providers & Services

DeepIntent, Inc.

Enhanced Permanent Capital, LLC(3)

31 unchanged sentences

Health Care Providers & Services

Montefiore Nyack Hospital

Health Care Providers & Services

NSPC Intermediate Corp.

1 unchanged sentence

Health Care Providers & Services

One Touch Direct, LLC

Commercial Services & Supplies

Oldco AI, LLC(f/k/a Amerimark)(14)(27)

Internet & Catalog Retail

Oldco AI, LLC (f/k/a Amerimark)(14)(27)**

Internet & Catalog Retail

Health Care Providers & Services

12 unchanged sentences

Life Sciences Tools & Services

RSC Acquisition, Inc.(16)

RxSense Holdings LLC(16)

5 unchanged sentences

Health Care Providers & Services

SPAR Marketing Force, Inc.

Stryten Resources LLC

4 unchanged sentences

Health Care Providers & Services

The Townsend Company, LLC

Commercial Services & Supplies

Tilley Distribution, Inc.(16)

6 unchanged sentences

Health Care Providers & Services

UVP Management, LLC

Health Care Providers & Services

Vessco Midco Holdings, LLC(16)

13 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

June 30, 2023

September 30, 2023

(in thousands, except share/unit amounts)

11 unchanged sentences

Biotechnology

Centrexion Therapeutics, Inc.

Pharmaceuticals

Cerapedics, Inc.

10 unchanged sentences

Health Care Equipment & Supplies

Spectrum Pharmaceuticals, Inc.(16)

Biotechnology

Vapotherm, Inc.

2 unchanged sentences

Health Care Equipment & Supplies

Total First Lien Life Science Senior Secured Loans

Total First Lien Life Science Senior

Secured Loans

Total Senior Secured Loans

30 unchanged sentences

3/7/2028 - 5/18/2028

CKD Holdings, Inc.

6/22/2026 - 9/22/2027

Clubcorp Holdings, Inc.

8 unchanged sentences

Auto Components

Double S Industrial Contractors, Inc.

Commercial Services & Supplies

Drillers Choice, Inc.

2 unchanged sentences

11/1/2027 - 6/1/2029

EasyPak, LLC (10)

Containers & Packaging

Energy Drilling Services, LLC (10)

7 unchanged sentences

Commercial Services & Supplies

First American Commercial Bancorp, Inc.

First American Commercial Bancorp,

Diversified Financial Services

5 unchanged sentences

12.51 - 12.89 %

Garda CL Technical Services, Inc.

Commercial Services & Supplies

Georgia Jet, Inc.

25 unchanged sentences

Commercial Services & Supplies

Nimble Crane LLC (10)

Commercial Services & Supplies

No Limit Construction Services, LLC (10)

13 unchanged sentences

Construction & Engineering

Royal Coach Lines, Inc.(10)

Royal Express Inc.

1 unchanged sentence

Diversified Consumer Services

Rutt Services, LLC (10)

Commercial Services & Supplies

Signet Marine Corporation (10)

14 unchanged sentences

Commercial Services & Supplies

Trinity Equipment, Inc.

Commercial Services & Supplies

8.78 - 8.93 %

5/4/2028 - 5/19/2028

Trinity Equipment Rentals, Inc.

4 unchanged sentences

Commercial Services & Supplies

8.73 %- 10.92 %

3/1/2027 - 9/1/2028

Up Trucking Services, LLC (10)

17 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

June 30, 2023

September 30, 2023

(in thousands, except share/unit amounts)

6 unchanged sentences

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

Aerospace & Defense

Common Equity/Equity Interests/Warrants— 61.1 %

Assertio Holdings, Inc.

Pharmaceuticals

aTyr Pharma, Inc.

39 unchanged sentences

Asset Management

Spectrum Pharmaceuticals, Inc.

Biotechnology

Vapotherm, Inc.

13 unchanged sentences

Floating rate debt investments typically bear interest at a rate determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), the Secured Overnight Financing Rate (“SOFR” or “S”) or the prime index rate (“PRIME” or “P”), 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 June 30, 2023.

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, 2023.

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, as amended (the “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 six months ended June 30, 2023 in these controlled investments are as follows:

Transactions during the nine months ended September 30, 2023 in these controlled investments are as follows:

Name of Issuer

Fair Value at

December 31, 2022

Interest/Dividend/Misc

Fair Value at

June 30, 2023

September 30,

Dividend/Misc

Equipment Operating Leases, LLC

18 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

June 30, 2023

September 30, 2023

(in thousands)

2 unchanged sentences

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 June 30, 2023, on a fair value basis, non-qualifying

As of September 30, 2023, on a fair value basis, non-qualifying

assets in the portfolio represented 25.1 % of the total assets of the Company.

1 unchanged sentence

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

Aggregate net unrealized depreciation for U.S.

Aggregate net unrealized appreciation for U.S.

federal income tax purposes is $ 31,537 ;

29 unchanged sentences

may elect to defer up to 3.00 % of the coupon as PIK.

(23) OmniGuide Holdings, Inc.

may elect to defer up to 10.00 % of the coupon as PIK.

The Company became an Affiliated Person to Bayside Opco, LLC and Bayside Parent, LLC on May 31, 2023 and to Amerimark Intermediate Holdings, LLC and SLR- AMI Topco Blocker, LLC on June 16, 2023.

Vapotherm, Inc.

2 unchanged sentences

may elect to defer up to 3.875 % of the coupon as PIK.

Denotes investments in which we are an “Affiliated Person” but not exercising a controlling influence, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 5% but less than 25% of the outstanding voting securities of the investment.

Transactions during the six months ended June 30, 2023 (beginning with the date at which the Company became an Affiliated Person) in these affiliated investments are as follows:

Denotes investments in which we are an “Affiliated Person” but do not exercise a controlling influence, as defined in the 1940 Act, due to beneficially owning, either directly or through one or more controlled companies, more than 5% but less than 25% of the outstanding voting securities of the investment.

Transactions during the nine months ended September 30, 2023 (beginning with the date at which the Company became an Affiliated Person) in these affiliated investments are as follows:

Name of Issuer

2 unchanged sentences

Fair Value at

June 30, 2023

AmeriMark Intermediate Holdings, LLC

September 30,

Interest Income

Oldco AI, LLC (f/k/a AmeriMark)

Bayside Opco, LLC

5 unchanged sentences

may elect to defer up to 2.50 % of the coupon as PIK.

The Company became an Affiliated Person to Bayside Opco, LLC and Bayside Parent, LLC on May 31, 2023 and to Amerimark Intermediate Holdings, LLC and SLR-AMI

Topco Blocker, LLC on June 16, 2023.

producing security.

3 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (unaudited) (continued)

June 30, 2023

September 30, 2023

(in thousands)

2 unchanged sentences

Investments (at fair value) as

of June 30, 2023

of September 30, 2023

Diversified Financial Services (includes SLR Credit Solutions, SLR Business Credit and SLR Healthcare ABL)

3 unchanged sentences

Pharmaceuticals

Biotechnology

Diversified Consumer Services

Biotechnology

Capital Markets

1 unchanged sentence

Thrifts & Mortgage Finance

Asset Management

Personal Products

Auto Parts & Equipment

Packaged Foods & Meats

Life Sciences Tools & Services

Wireless Telecommunication Services

Asset Management

Internet Software & Services

Building Products

Health Care Technology

Transportation Infrastructure

Internet & Catalog Retail

Packaged Foods & Meats

Communications Equipment

Trading Companies & Distributors

Health Care Technology

Leisure Equipment & Products

Trading Companies & Distributors

Auto Parts & Equipment

Specialty Retail

Hotels, Restaurants & Leisure

Auto Components

Aerospace & Defense

Oil, Gas & Consumable Fuels

Food Products

Auto Components

Metals & Mining

4 unchanged sentences

Energy Equipment & Services

Containers & Packaging

Total Investments

See notes to consolidated financial statements.

consolidated financial statements.

SLR INVESTMENT CORP.

6 unchanged sentences

Health Care Providers & Services

All State Ag Parts, LLC(16)

All States Ag Parts, LLC(16)

Trading Companies & Distributors

15 unchanged sentences

CC SAG Holdings Corp.

(Spectrum Automotive)(16)

Automotive)(16)

Diversified Consumer Services

Composite Technology Acquisition

Composite Technology Acquisition Corp.(16)

Building Products

5 unchanged sentences

ENS Holdings III Corp.

& ES Opco USA LLC (Bluefin)(16)

& ES Opco USA

LLC (Bluefin)(16)

Trading Companies & Distributors

36 unchanged sentences

Health Care Providers & Services

Foy & Associates Insurance Services, LLC

Foy & Associates Insurance Services,

PhyNet Dermatology LLC

13 unchanged sentences

Health Care Providers & Services

SHO Holding I Corporation (Shoes for Crews)(16)

SHO Holding I Corporation (Shoes for

Southern Orthodontic Partners Management, LLC(16)

9 unchanged sentences

Trading Companies & Distributors

Ultimate Baked Goods Midco LLC (Rise Baking)(16)

Ultimate Baked Goods Midco LLC (Rise

Packaged Foods & Meats

2 unchanged sentences

World Insurance Associates, LLC(16)

Total First Lien Bank Debt/Senior Secured Loans

Second Lien Asset-Based Senior Secured Loans

Total First Lien Bank Debt/Senior

Secured Loans

Second Lien Asset-Based Senior Secured

ACRES Commercial Mortgage, LLC

40 unchanged sentences

Total Senior Secured Loans

Interest Rate (1)

Equipment Financing — 26.6 %

134 unchanged sentences

(in thousands, except share/unit amounts)

Interest Rate (1)

Preferred Equity – 0.4 %

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

Aerospace & Defense

Common Equity/Equity Interests/Warrants— 57.1 %

6 unchanged sentences

Conventus Orthopaedics, Inc.

Health Care Equipment &

Health Care Equipment & Supplies

Delphinus Medical Technologies, Inc.

Health Care Equipment &

Health Care Equipment & Supplies

Essence Group Holdings Corporation (Lumeris) Warrants *

3 unchanged sentences

Meditrina, Inc.

Health Care Equipment &

Health Care Equipment & Supplies

RD Holdco, Inc.

8 unchanged sentences

Senseonics Holdings, Inc.

Health Care Equipment &

Health Care Equipment & Supplies

SLR Business Credit (2)(3)(19)

9 unchanged sentences

Vapotherm, Inc.

Health Care Equipment &

Health Care Equipment & Supplies

Venus Concept Ltd.

Warrants* (f/k/a Restoration Robotics)

Health Care Equipment &

Health Care Equipment & Supplies

Total Common Equity/Equity Interests/Warrants

11 unchanged sentences

Fair Value at

December 31, 2021

Interest/Dividend

Fair Value at

December 31, 2022

Equipment Operating Leases, LLC

118 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

30 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

30 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

8 unchanged sentences

When available, broker quotations and/or quotations provided by pricing services are considered as an input in the valuation process.

For the six months ended June 30, 2023, there has been no change to the Company’s valuation approaches or techniques and the nature of the related inputs considered in the valuation process.

For the nine months ended September 30, 2023, there has been no change to the Company’s 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:

12 unchanged sentences

fee income as well as a management fee and other fee income for services rendered, if any, are recorded as other income when earned.

The Company intends to comply with the applicable provisions of the Code pertaining to RICs

to make distributions of taxable income sufficient to relieve it of substantially all U.S.

The Company intends to comply with the applicable provisions of the Code pertaining to RICs to make distributions of taxable income sufficient to relieve it of substantially all U.S.

federal income taxes.

12 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

31 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

22 unchanged sentences

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;

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 Company’s pre-incentive

fee net investment income, if any, that exceeds 2.1875

% in any calendar quarter.

fee net investment income, if any, that exceeds 2.1875% in any calendar quarter.

These calculations are appropriately pro-rated

3 unchanged sentences

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 six months ended June 30, 2023 and 2022.

For the three and six months ended June 30, 2023, the Company recognized $ 7,878 and $ 15,584 , respectively, in base management fees and $ 5,638 and $ 11,147 , respectively, in performance-based incentive fees.

For the three and six months ended June 30, 2023, $ 125 and $ 235 , respectively, of such performance-based incentive fees were waived.

For the three and six months ended June 30, 2022, the Company recognized $ 6,913 and $ 14,129 , respectively, in base management fees and $ 4,734 and $ 4,734 , respectively, in gross performance-based incentive fees.

For the three and six months ended June 30, 2022, $ 1,358 and $ 1,358 of such performance-based incentive fees were waived.

No accrual was required for the three and nine months ended September 30, 2023 and 2022.

For the three and nine months ended September 30, 2023, the Company recognized $ 8,051 and $ 23,635 , respectively, in base management fees and $ 5,796 and $ 16,943 , respectively, in performance-based incentive fees.

For the three and nine months ended September 30, 2023, $ 175 and $ 410 , respectively, of such performance-based incentive fees were waived.

For the three and nine months ended September 30, 2022, the Company recognized $ 7,890 and $ 22,019 , respectively, in base management fees and $ 4,965 and $ 9,699 , respectively, in gross performance-based incentive fees.

For the three and nine months ended September 30, 2022, $ 194 and $ 1,552 of such performance-based incentive fees were waived.

The Investment Adviser has agreed to waive incentive fees resulting from income earned due to the accretion of purchase discount allocated to investments acquired as a result of the Mergers.

4 unchanged sentences

The Company typically reimburses the Administrator on a quarterly basis.

For the three and six months ended June 30, 2023, the Company recognized expenses under the Administration Agreement of $ 1,480 and $ 2,988 respectively.

For the three and six months ended June 30, 2022, the Company recognized expenses under the Administration Agreement of $ 1,369 and $ 2,552 respectively.

No managerial assistance fees were accrued or collected for the three and six months ended June 30, 2023 and 2022.

For the three and nine months ended September 30, 2023, the Company recognized expenses under the Administration Agreement of $ 1,575 and $ 4,563 respectively.

For the three and nine months ended September 30, 2022, the Company recognized expenses under the Administration Agreement of $ 1,132 and $ 3,684 respectively.

No managerial assistance fees were accrued or collected for the three and nine months ended September 30, 2023 and 2022.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

Net Asset Value Per Share

At June 30, 2023, the Company’s total net assets and net asset value per share were $ 980,805 and $ 17.98 , respectively.

At September 30, 2023, the Company’s total net assets and net asset value per share were $ 985,385 and $ 18.06 , respectively.

This compares to total net assets and net asset value per share at December 31, 2022 of $ 999,731 and $ 18.33 , respectively.

1 unchanged sentence

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 and six months ended June 30, 2023 and 2022:

Three months ended June 30,

Six months ended June 30,

for the three and nine months ended September 30, 2023 and 2022:

Three months ended September 30,

Nine months ended September 30,

Earnings (loss) per share (basic & diluted)

25 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

The following tables present the balances of assets measured at fair value on a recurring basis, as of June 30, 2023 and December 31, 2022:

The following tables present the balances of assets measured at fair value on a recurring basis, as of September 30, 2023 and December 31, 2022:

Fair Value Measurements

As of June 30, 2023

As of September 30, 2023

Net Asset Value*

20 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

The following tables provide a summary of the changes in fair value of Level 3 assets for the three and six months ended June 30, 2023, 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 June 30, 2023:

The following tables provide a summary of the changes in fair value of Level 3 assets for the three and nine months ended September 30, 2023, 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 September 30, 2023:

Fair Value Measurements Using Level 3 Inputs

2 unchanged sentences

Common Equity/

Fair value, March

Fair value, June

Total gains or losses included in earnings:

Net realized gain

Net realized loss

Net change in unrealized gain (loss)

2 unchanged sentences

Transfers in/out of Level 3

Fair value, June

Fair value, September

Unrealized losses for the period relating to those Level 3 assets that were still held by the Company at the end of the period:

5 unchanged sentences

Total gains or losses included in earnings:

Net realized gain

Net change in unrealized loss

Net realized loss

Net change in unrealized gain (loss)

Purchase of investment securities *

1 unchanged sentence

Transfers in/out of Level 3

Fair value, June

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 loss.

While the Company has not made an election to apply the fair value option of accounting to any of its current debt obligations, if the Company’s debt obligations were carried at fair value at June 30, 2023, the fair value of the Credit Facility, SPV Credit Facility, 2024 Unsecured Notes, 2025 Unsecured Notes, 2026 Unsecured Notes, 2027 Unsecured Notes and 2027 Series F Unsecured Notes would be $ 582,000 , $ 167,200 , $ 119,688 , $ 80,325 , $ 68,250 , $ 43,125 and $ 118,463 , respectively.

Fair value, September

Unrealized gains (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)

Includes PIK capitalization and accretion of discount

While the Company has not made an election to apply the fair value option of accounting to any of its current debt obligations, if the Company’s debt obligations were carried at fair value at September 30, 2023, the fair value of the Credit Facility, SPV Credit Facility, 2024 Unsecured Notes, 2025 Unsecured Notes, 2026 Unsecured Notes, 2027 Unsecured Notes and 2027 Series F Unsecured Notes would be $ 521,500 , $ 206,250 , $ 120,313 , $ 80,750 , $ 68,438 , $ 43,375 and $ 119,138 , respectively.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

29 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

5 unchanged sentences

Significant unobservable quantitative inputs typically used in the fair value measurement of the Company’s Level 3 assets and liabilities primarily reflect current market yields, including indices, and readily available quotes from brokers, dealers, and pricing services as indicated by comparable assets and liabilities, as well as 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 Company’s Level 3 asset and liability fair value measurements as of June 30, 2023 is summarized in the table below:

Quantitative information about the Company’s Level 3 asset and liability fair value measurements as of September 30, 2023 is summarized in the table below:

Fair Value at

June 30, 2023

September 30, 2023

Principal Valuation

4 unchanged sentences

1,292,834 7,532

Income Approach

Recovery Analysis

Recoverable Amount

9.9 % – 20.8 % ( 12.8 %) N/A

Income Approach Recovery Analysis

Market Yield Recoverable Amount

10.1 % - 20.5 % ( 12.8 %)

Equipment Financing

144,486 120,820

Income Approach

Market Multiple (1)

Comparable Multiple

Income Approach Market Multiple (1)

Market Yield Comparable Multiple

8.5 % - 9.5 % ( 9.5 %)

1.1 x- 1.4 x ( 1.2 x)

6 unchanged sentences

Market Approach

Comparable Multiple

Return on Equity

Comparable Multiple Return on Equity

6.3 x - 11.5 x ( 8.8 x)

5.5 % - 30.7 % ( 10.7 %)

Includes $ 120,820 of investments valued using an implied multiple.

9 unchanged sentences

1,212,842 32,572

Income Approach

Market Multiple (1)

Comparable Multiple

Income Approach Market Multiple (1)

Market Yield Comparable Multiple

9.4 % - 18.2 % ( 12.0 %)

0.1 x- 21.4 x ( 12.4 x)

1 unchanged sentence

145,132 120,820

Income Approach

I ncome Approach

Market Multiple (2)

Comparable Multiple

Market Yield Comparable Multiple

8.5 % - 9.7 % ( 9.7 %)

1.1 x- 1.4 x ( 1.2 x)

Preferred Equity

Income Approach

I ncome Approach

5.0 % - 5.0 % ( 5.0 %)

3 unchanged sentences

Market Approach

Comparable Multiple

Return on Equity

Comparable Multiple Return on Equity

7.8 x – 9.8 x ( 8.8 x) 6.6 % - 35.2 % ( 9.2 %)

3 unchanged sentences

Includes $ 676 of investments valued using a Black-Scholes model and $ 148,444 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

t 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.

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

Our debt obligations consisted of the following as of June 30, 2023 and December 31, 2022:

June 30, 2023

Our debt obligations consisted of the following as of September 30, 2023 and December 31, 2022:

September 30, 2023

December 31, 2022

9 unchanged sentences

2027 Series F Unsecured Notes

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 4,157 and $ 4,746 as of June 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized market discount of $ 767 and $ 898 as of June 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 3,918 and $ 4,746 as of September 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized market discount of $ 987 and $ 898 as of September 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 21 as of December 31, 2022.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 437 and $ 579 as of June 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized market discount of $ 304 and $ 387 as of June 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 444 and $ 502 as of June 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 41 and $ 47 as of June 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 17 and $ 22 as of June 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 363 and $ 579 as of September 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized market discount of $ 262 and $ 387 as of September 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 414 and $ 502 as of September 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 37 and $ 47 as of September 30, 2023 and December 31, 2022, respectively.

Carrying Value equals the Face Amount net of unamortized debt issuance costs of $ 15 and $ 22 as of September 30, 2023 and December 31, 2022, respectively.

Unsecured Notes

14 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

8 unchanged sentences

The CF Assumption Agreement relates to the Company’s assumption of the Revolving Credit Facility, originally entered into on August 26, 2011 (as amended from time to time, the “SPV Credit Facility”), by and among SUNS SPV LLC (the “SUNS SPV”), a wholly-owned subsidiary of SUNS, acting as borrower, Citibank, N.A., acting as administrative agent and collateral agent, and the other parties thereto.

Currently, the commitment under the SPV Credit Facility is $ 225,000 ;

Currently, subsequent to an August 29, 2023 amendment, the commitment under the SPV Credit Facility is $ 275,000 ;

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

The stated interest rate on the SPV Credit Facility is SOFR

plus 2.00 %- 2.50 %

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

The stated interest rate on the SPV Credit Facility is SOFR plus 2.00 %- 2.50 %

with no SOFR floor requirement and the current final maturity date is June 1, 2026 .

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

1 unchanged sentence

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

At June 30, 2023, outstanding USD equivalent borrowings under the SPV Credit Facility totaled $ 167,200 .

At September 30, 2023, outstanding USD equivalent borrowings under the SPV Credit Facility totaled $ 206,250 .

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 and a November 2022 upsizing, the Credit Facility is composed of $ 625,000 of revolving credit and $ 100,000 of term loans.

Following the amendment, a $ 25,000

November 2022 upsizing and a $ 40,000

August 2023 commitment expiration, the Credit Facility is composed of $ 585,000 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 %

4 unchanged sentences

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

At June 30, 2023, outstanding USD equivalent borrowings under the Credit Facility totaled $ 582,000 , composed of $ 482,000 of revolving credit and $ 100,000 of term loans.

At September 30, 2023, outstanding USD equivalent borrowings under the Credit Facility totaled $ 521,500 , composed of $ 421,500 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 average annualized interest cost for all borrowings for the six months ended June 30, 2023 and the year ended December 31, 2022 was 5.60 % and 4.09 %, respectively.

The average annualized interest cost for all borrowings for the nine months ended September 30, 2023 and the year ended December 31, 2022 was 5.79 % and 4.09 %, 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 SPV Credit Facility, the 2023 Unsecured Notes, the 2024 Unsecured Notes, the 2025 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 six months ended June 30, 2023 and the year ended December 31, 2022 were $ 1,219,200 and $ 1,164,200 , respectively.

The maximum amounts borrowed on the Debt Instruments during the nine months ended September 30, 2023 and the year ended December 31, 2022 were $ 1,273,200 and $ 1,164,200 , respectively.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

Financial Highlights

The following is a schedule of financial highlights for the six months ended June 30, 2023 and 2022:

Six months ended

June 30, 2023

Six months ended

June 30, 2022

The following is a schedule of financial highlights for the nine months ended September 30, 2023 and 2022:

Nine months ended

September 30, 2023

Nine months ended

September 30, 2022

Per Share Data:

3 unchanged sentences

Net increase (decrease) in net assets resulting from operations

Issuance of common stock in connection with the Merger

Issuance of common stock in connection with the Mergers

Distributions to stockholders:

13 unchanged sentences

Portfolio turnover ratio

Calculated using the average shares outstanding method, except for the issuance of common stock in connection with the Merger, which reflects the actual amount per share for the applicable period.

Calculated using the average shares outstanding method, except for the issuance of common stock in connection with the Mergers, which reflects the actual amount per share for the applicable period.

Total return is based on the change in market price per share during the period and takes into account distributions, if any, reinvested in accordance with the dividend reinvestment plan.

2 unchanged sentences

Not annualized for periods less than one year.

The amount shown may not correspond with the aggregate amount for the period as it includes the effect of the timing of the Merger.

The amount shown may not correspond with the aggregate amount for the period as it includes the effect of the timing of the Mergers.

The ratio of operating expenses to average net assets and the ratio of total expenses to average net assets is shown net of the performance-based incentive fee waiver (see note 3).

For the six months ended June 30, 2023, the ratios of operating expenses to average net assets and total expenses to average net assets would be 3.24 % and 6.58 %, respectively, without the performance-based incentive fee waiver.

For the six months ended June 30, 2022, the ratios of operating expenses to average net assets and total expenses to average net assets would be 2.58 % and 4.53 %, respectively, without the performance-based incentive fee waiver.

For the nine months ended September 30, 2023, the ratios of operating expenses to average net assets and total expenses to average net assets would be 4.93 % and 10.30 %, respectively, without the performance-based incentive fee waiver.

For the nine months ended September 30, 2022, the ratios of operating expenses to average net assets and total expenses to average net assets would be 4.06 % and 7.28 %, respectively, without the performance-based incentive fee waiver.

SLR Credit Solutions

6 unchanged sentences

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

As of June 30, 2023, total commitments to the revolving credit facility are $ 300,000 .

As of June 30, 2023 SLR Credit had 29 funded commitments to 25 different issuers with total funded loans of approximately $ 425,019 on total assets of $ 443,024 .

As of September 30, 2023, total commitments to the revolving credit facility are $ 300,000 .

As of September 30, 2023 SLR Credit had 32 funded commitments to 28 different issuers with total funded loans of approximately $ 469,495 on total assets of $ 506,081 .

As of December 31, 2022 SLR Credit had 29 funded commitments to 25 different issuers with total funded loans of approximately $ 439,484 on total assets of $ 460,683 .

As of June 30, 2023 and December 31, 2022, the largest loan outstanding totaled $ 30,000 and $ 33,420 , respectively.

As of September 30, 2023 and December 31, 2022, the largest loan outstanding totaled $ 40,725 and $ 33,420 , respectively.

For the same periods, the average exposure per issuer was $ 16,768 and $ 17,579 , respectively.

SLR Credit’s credit facility, which is non-recourse

to the Company, had approximately $ 216,947 and $ 224,325 of borrowings outstanding at June 30, 2023 and December 31, 2022, respectively.

For the three months ended June 30, 2023 and 2022, SLR Credit had net income of $ 6,767 and $ 1,880 , respectively, on gross income of $ 13,897 and $ 6,882 , respectively.

For the six months ended June 30, 2023 and 2022, SLR Credit had net income (loss) of ($ 2,905 ) and $ 4,660 , respectively, on gross income of $ 28,452 and $ 13,575 , respectively.

to the Company, had approximately $ 284,472 and $ 224,325 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively.

For the three months ended September 30, 2023 and 2022, SLR Credit had net income of $ 4,315 and $ 3,897 , respectively, on gross income of $ 13,897 and $ 8,596 , respectively.

For the nine months ended September 30, 2023 and 2022, SLR Credit had net income of $ 1,411 and $ 8,557 , respectively, on gross income of $ 42,350 and $ 22,171 , respectively.

Due to timing and non-cash

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

(in thousands, except share amounts)

Commitments and Contingencies

Sheet Arrangements

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

The total amount of these unfunded commitments as of June 30, 2023 and December 31, 2022 is $ 325,858 and $ 323,663 , respectively, comprised of the following:

June 30, 2023

December 31, 2022

SLR Credit Solutions*

Outset Medical, Inc.

Apeel Technology, Inc.

CVAUSA Management, LLC

Human Interest, Inc

BDG Media, Inc.

Arcutis Biotherapeutics, Inc.

Atria Wealth Solutions, Inc.

Copper River Seafoods, Inc.

Cerapedics, Inc.

United Digestive MSO Parent, LLC

Luxury Asset Capital, LLC

SPAR Marketing Force, Inc.

Urology Management Holdings, Inc.

One Touch Direct, LLC

Spectrum Pharmaceuticals, Inc.

SLR Equipment Finance

Meditrina, Inc.

Vertos Medical, Inc.

Foundation Consumer Brands, LLC

Vessco Midco Holdings, LLC

Kid Distro Holdings, LLC

RSC Acquisition, Inc.

Erie Construction Mid-west,

Ultimate Baked Goods Midco LLC

Maurices, Incorporated

Basic Fun, Inc.

SCP Eye Care, LLC

DeepIntent, Inc.

SunMed Group Holdings, LLC

SLR Healthcare ABL*

American Teleconferencing Services, Ltd

Montefiore Nyack Hospital

Pinnacle Treatment Centers, Inc.

RxSense Holdings LLC

Bayside Opco, LLC

Enverus Holdings, Inc.

Tilley Distribution, Inc.

Pediatric Home Respiratory Services, LLC

GSM Acquisition Corp

Composite Technology Acquisition Corp

High Street Buyer, Inc.

CC SAG Holdings Corp.

(Spectrum Automotive)

Orthopedic Care Partners Management, LLC

Southern Orthodontic Partners Management, LLC

ENS Holdings III Corp, LLC

World Insurance Associates, LLC

TAUC Management, LLC

AmeriMark Intermediate Holdings, LLC

All State Ag Parts, LLC

Plastics Management, LLC

Ivy Fertility Services, LLC

NAC Holdings Corporation

Foy & Associates Insurance Services, LLC

BayMark Health Services, Inc.

Total Commitments

The Company controls the funding of the SLR Credit Solutions and SLR Healthcare ABL commitments and may cancel them at its discretion.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

In addition to the above, please see Note 17.

SLR Senior Lending Program LLC herein, which describes that the Company has an equity commitment of $29,250 in SSLP and that the Company also controls such funding.

The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the portfolio company’s 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.

As of June 30, 2023 and December 31, 2022, 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.

SLR Equipment Finance

8 unchanged sentences

In June 2023, the facility was amended to extend the maturity date to January 31, 2024 , with updated commitments totaling $ 152,147 , effective August 1, 2023 .

As of June 30, 2023, SLR Equipment had 129 funded equipment-backed leases and loans to 54 different customers with a total net investment in leases and loans of approximately $ 197,694 on total assets of $ 246,528 .

As of September 30, 2023, SLR Equipment had 141 funded equipment-backed leases and loans to 56 different customers with a total net investment in leases and loans of approximately $ 199,831 on total assets of $ 251,031 .

As of December 31, 2022, SLR Equipment had 131 funded equipment-backed leases and loans to 59 different customers with a total net investment in leases and loans of approximately $ 190,830 on total assets of $ 241,813 .

As of June 30, 2023 and December 31, 2022, the largest position outstanding totaled $ 18,243 and $ 19,259 , respectively.

As of September 30, 2023 and December 31, 2022, the largest position outstanding totaled $ 18,319 and $ 19,259 , respectively.

For the same periods, the average exposure per customer was $ 3,568 and $ 3,234 , respectively.

SLR Equipment’s credit facility, which is non-recourse

to the Company, had approximately $ 124,732 and $ 114,977 of borrowings outstanding at June 30, 2023 and December 31, 2022, respectively.

For the three months ended June 30, 2023 and June 30, 2022, SLR Equipment had net loss of $ 2,055 and $ 1,753 , respectively, on gross income of $ 4,054 and $ 4,045 , respectively.

For the six months ended June 30, 2023 and June 30, 2022, SLR Equipment had net loss of $ 1,017 and $ 1,159 , respectively, on gross income of $ 10,391 and $ 9,218 , respectively.

to the Company, had approximately $ 130,557 and $ 114,977 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively.

For the three months ended September 30, 2023 and September 30, 2022, SLR Equipment had net income (loss) of ($ 1,176 ) and $ 1,034 , respectively, on gross income of $ 4,783 and $ 6,486 , respectively.

For the nine months ended September 30, 2023 and September 30, 2022, SLR Equipment had net loss of $ 2,193 and $ 125 , respectively, on gross income of $ 15,174 and $ 15,704 , 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 June 30, 2023 and June 30, 2022, 200,000,000 shares of $ 0.01 par value capital stock were authorized.

Transactions in capital stock were as follows:

Three months ended

June 30, 2023

Three months ended

June 30, 2022

Three months ended

June 30, 2023

Three months ended

June 30, 2022

Shares issued in connection with the Mergers

Six months ended

June 30, 2023

Six months ended

June 30, 2022

Six months ended

June 30, 2023

Six months ended

June 30, 2022

Shares issued in connection with the Mergers

Shares repurchased

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

(in thousands, except share amounts)

Kingsbridge Holdings, LLC

6 unchanged sentences

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

As of June 30, 2023 and December 31, 2022, KBHT had total assets of $ 797,930 and $ 777,151 , respectively.

As of September 30, 2023 and December 31, 2022, KBHT had total assets of $ 783,089 and $ 777,151 , respectively.

For the same periods, debt recourse to KBHT totaled $ 239,505 and $ 222,094 , respectively, and non-recourse

1 unchanged sentence

None of the debt is recourse to the Company.

For the three months ended June 30, 2023 and 2022, KBHT had net income of $ 3,287 and $ 3,657 , respectively, on gross income of $ 75,500 and $ 77,316 , respectively.

For the six months ended June 30, 2023 and 2022, KBHT had net income of $ 5,914 and $ 7,066 , respectively, on gross income of $ 143,507 and $ 143,741 , respectively.

For the three months ended September 30, 2023 and 2022, KBHT had net income of $ 2,129 and $ 3,327 , respectively, on gross income of $ 85,544 and $ 71,332 , respectively.

For the nine months ended September 30, 2023 and 2022, KBHT had net income of $ 7,151 and $ 10,393 , respectively, on gross income of $ 229,051 and $ 215,074 , respectively.

Due to timing and non-cash

8 unchanged sentences

in the transaction and continues to lead SLR Healthcare.

As of June 30, 2023, SLR Healthcare’s management team and the Company own approximately 7 % and 93 % of the equity in SLR Healthcare, respectively.

As of September 30, 2023, SLR Healthcare’s management team and the Company own approximately 7 % and 93 % of the equity in SLR Healthcare, respectively.

SLRC acquired SLR Healthcare in connection with the Mergers on April 1, 2022.

Concurrent with the closing of the transaction, SLR Healthcare entered into a new, four-year , non-recourse,

$ 100,000 credit facility with non-affiliates,

which was expandable to $ 150,000 under its accordion feature.

Effective March 31, 2014, the credit facility was expanded to $ 105,000 and again on June 27, 2014 to $ 110,000 .

On May 27, 2016, SLR Healthcare entered into a new $ 125,000 credit facility which replaced the previously existing facility.

The new facility has similar terms as compared to the previous facility and includes an accordion feature increase to $ 200,000 and had a maturity date of May 27, 2020 .

On June 28, 2019, this $ 125,000 facility was amended, extending the maturity date to June 28, 2023 .

On March 31, 2023, the facility was again amended, adjusting capacity to $ 100,000 and extending the maturity date to March 31, 2026 .

Effective with an amendment dated August 24, 2023, SLR Healthcare has a $ 150,000 non-recourse

credit facility, which is expandable to $ 200,000 under its accordion facility.

The maturity date of this facility is March 31, 2026 .

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

SLR Healthcare currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments.

As of June 30, 2023, the portfolio totaled approximately $ 261,600 of commitments with a total net investment in loans of $ 99,555 on total assets of $ 106,837 .

As of September 30, 2023, the portfolio totaled approximately $ 237,000 of commitments with a total net investment in loans of $ 106,484 on total assets of $ 113,832 .

As of December 31, 2022, the portfolio totaled approximately $ 242,106 of commitments with a total net investment in loans of $ 92,383 on total assets of $ 108,705 .

At June 30, 2023, the portfolio consisted of 40 issuers with an average balance of approximately $ 2,489 versus 41 issuers with an average balance of approximately $ 2,253 at December 31, 2022.

At September 30, 2023, the portfolio consisted of 38 issuers with an average balance of approximately $ 2,802 versus 41 issuers with an average balance of approximately $ 2,253 at December 31, 2022.

All of the commitments in SLR Healthcare’s portfolio are floating-rate, senior-secured, cash-pay

SLR Healthcare’s credit facility, which is non-recourse

to us, had approximately $ 74,900 and $ 77,000 of borrowings outstanding at June 30, 2023 and December 31, 2022, respectively.

For the three months ended June 30, 2023 and 2022, SLR Healthcare had net income of $ 1,273 and $ 847 , respectively, on gross income of $ 4,439 and $ 2,487 , respectively.

For the six months ended June 30, 2023 and 2022, SLR Healthcare had net income of $ 2,393 and $ 1,721 , respectively, on gross income of $ 8,276 and $ 4,878 , respectively.

to us, had approximately $ 81,000 and $ 77,000 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively.

For the three months ended September 30, 2023 and 2022, SLR Healthcare had net income of $ 1,532 and $ 822 , respectively, on gross income of $ 4,833 and $ 3,020 , respectively.

For the nine months ended September 30, 2023 and 2022, SLR Healthcare had net income of $ 3,925 and $ 2,543 , respectively, on gross income of $ 13,109 and $ 7,898 , 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)

June 30, 2023

(in thousands, except share amounts)

SLR Business Credit

15 unchanged sentences

The transaction purchase price of $ 66,671 was financed with equity from SUNS of $ 19,000 and borrowings on NMC’s credit facility of $ 47,671 .

SLRC acquired SLR Business Credit in connection with the Mergers on April 1, 2022.

SLR Business Credit currently manages a highly diverse portfolio of directly-originated and underwritten senior-secured commitments.

As of June 30, 2023, the portfolio totaled approximately $ 620,232 of commitments, of which $ 255,169 were funded, on total assets of $ 300,645 .

As of September 30, 2023, the portfolio totaled approximately $ 612,399 of commitments, of which $ 257,818 were funded, on total assets of $ 302,912 .

As of December 31, 2022, the portfolio totaled approximately $ 603,432 of commitments, of which $ 286,006 were funded, on total assets of $ 332,247 .

At June 30, 2023, the portfolio consisted of 101 issuers with an average balance of approximately $ 2,526 versus 108 issuers with an average balance of approximately $ 2,648 at December 31, 2022.

At September 30, 2023, the portfolio consisted of 98 issuers with an average balance of approximately $ 2,631 versus 108 issuers with an average balance of approximately $ 2,648 at December 31, 2022.

NMC has a senior credit facility with a bank lending group for $ 285,307 which expires on November 13, 2025 .

1 unchanged sentence

NMC’s credit facility, which is non-recourse

to us, had approximately $ 198,571 and $ 214,425 of borrowings outstanding at June 30, 2023 and December 31, 2022, respectively.

For the three months ended June 30, 2023 and 2022, SLR Business Credit had net income of $ 1,414 and $ 1,857 respectively, on gross income of $ 8,827 and $ 6,626 , respectively.

For the six months ended June 30, 2023 and 2022, SLR Business Credit had net income of $ 3,431 and $ 3,726 respectively, on gross income of $ 11,067 and $ 12,772 , respectively.

to us, had approximately $ 199,449 and $ 214,425 of borrowings outstanding at September 30, 2023 and December 31, 2022, respectively.

For the three months ended September 30, 2023 and 2022, SLR Business Credit had net income of $ 1,779 and $ 1,977 respectively, on gross income of $ 9,709 and $ 7,607 , respectively.

For the nine months ended September 30, 2023 and 2022, SLR Business Credit had net income of $ 5,211 and $ 5,703 respectively, on gross income of $ 27,868 and $ 20,378 , respectively.

Due to timing and non-cash

1 unchanged sentence

As such, and subject to fluctuations in SLR Business Credit’s funded commitments, the timing of originations, and the repayments of financings, the Company cannot guarantee that SLR Business Credit will be able to maintain consistent dividend payments to us.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

Commitments and Contingencies

Sheet Arrangements

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

The total amount of these unfunded commitments as of September 30, 2023 and December 31, 2022 is $ 367,295 and $ 364,163 , respectively, comprised of the following:

September 30,

SLR Credit Solutions*

Outset Medical, Inc.

Apeel Technology, Inc.

Southern Orthodontic Partners Management, LLC

SLR Senior Lending Program LLC*

Orthopedic Care Partners Management, LLC

Human Interest, Inc.

CVAUSA Management, LLC

BDG Media, Inc.

Neuronetics, Inc.

Cerapedics, Inc.

Alkeme Intermediate Holdings, LLC

Arcutis Biotherapeutics, Inc.

Ardelyx, Inc.

United Digestive MSO Parent, LLC

Foy & Associates Insurance Services, LLC

Luxury Asset Capital, LLC

UVP Management, LLC

Urology Management Holdings, Inc.

The Townsend Company, LLC

SLR Equipment Finance

Vertos Medical, Inc.

Foundation Consumer Brands, LLC

Kid Distro Holdings, LLC

Maurices, Incorporated

Erie Construction Mid-west,

Ultimate Baked Goods Midco LLC

Basic Fun, Inc.

Bayside Opco, LLC

SunMed Group Holdings, LLC

SCP Eye Care, LLC

SLR Healthcare ABL*

RxSense Holdings LLC

Enverus Holdings, Inc.

Tilley Distribution, Inc.

GSM Acquisition Corp.

Composite Technology Acquisition Corp

High Street Buyer, Inc.

CC SAG Holdings Corp.

(Spectrum Automotive)

ENS Holdings III Corp, LLC

Pinnacle Treatment Centers, Inc.

Vessco Midco Holdings, LLC

TAUC Management, LLC

All States Ag Parts, LLC

World Insurance Associates, LLC

Spectrum Pharmaceuticals, Inc.

Atria Wealth Solutions, Inc.

Accession Risk Management Group, Inc.

Copper River Seafoods, Inc.

Meditrina, Inc.

One Touch Direct, LLC

DeepIntent, Inc.

Plastics Management, LLC

Pediatric Home Respiratory Services, LLC

Ivy Fertility Services, LLC

NAC Holdings Corporation

SPAR Marketing Force, Inc.

Montefiore Nyack Hospital

American Teleconferencing Services, Ltd

BayMark Health Services, Inc.

Total Commitments

The Company controls the funding of these commitments and may cancel them at its discretion.

SLR INVESTMENT CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

September 30, 2023

(in thousands, except share amounts)

The credit agreements of the above loan commitments contain customary lending provisions and/or are subject to the respective portfolio company’s 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.

As of September 30, 2023 and December 31, 2022, 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.

Capital Share Transactions

As of September 30, 2023 and September 30, 2022, 200,000,000 shares of $ 0.01 par value capital stock were authorized.

Transactions in capital stock were as follows:

Three months ended

September 30, 2023

Three months ended

September 30, 2022

Three months ended

September 30, 2023

Three months ended

September 30, 2022

Shares issued in connection with the Mergers

Nine months ended

September 30, 2023

Nine months ended

September 30, 2022

Nine months ended

September 30, 2023

Nine months ended

September 30, 2022

Shares issued in connection with the Mergers

Shares repurchased

Stock Repurchase Program

6 unchanged sentences

There are no assurances that we will engage in any repurchases beyond what is reported herein.

For the six months ended June 30, 2023, the Company repurchased 746 shares at an average price of approximately $ 14.02 per share, inclusive of commissions.

The total dollar amount of shares repurchased for the six months ended June 30, 2023 was $ 10 .

For the nine months ended September 30, 2023, the Company repurchased 746 shares at an average price of approximately $ 14.02 per share, inclusive of commissions.

The total dollar amount of shares repurchased for the nine months ended September 30, 2023 was $ 10 .

During the fiscal year ended December 31, 2022, the Company repurchased 217,271 shares at an average price of approximately $ 13.98 per share, inclusive of commissions.

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

11 unchanged sentences

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

At June 30, 2023, there were $ 38,400 of borrowings outstanding on the SSLP Facility.

As of June 30, 2023, the Company and the Investor had contributed combined equity capital in the amount of $ 41,500 .

As of June 30, 2023, the Company and the Investors’ remaining commitments to SSLP totaled $ 29,250 and $ 29,250 , respectively.

At September 30, 2023, there were $ 79,200 of borrowings outstanding on the SSLP Facility.

As of September 30, 2023, the Company and the Investor had contributed combined equity capital in the amount of $ 57,500 .

As of September 30, 2023, the Company and the Investors’ remaining commitments to SSLP totaled $ 21,250 and $ 21,250 , respectively.

The Company, along with the Investor, controls the funding of SSLP and SSLP may not call the unfunded commitments of the Company or the Investor without the approval of both the Company and the Investor.

As of June 30, 2023 and December 31, 2022, SSLP had total assets of $ 79,411 and $ 19,105 , respectively.

As of September 30, 2023 and December 31, 2022, SSLP had total assets of $ 137,447 and $ 19,105 , respectively.

For the same periods, SSLP’s portfolio consisted of floating rate senior secured loans to 27 and 7 different borrowers, respectively.

For the three months ended June 30, 2023, SSLP invested $ 32,557 in 9 portfolio companies.

Investments prepaid totaled $ 182 for the three months ended June 30, 2023.

For the three months ended September 30, 2023, SSLP invested $ 57,456 in 16 portfolio companies.

Investments prepaid totaled $ 1,658 for the three months ended September 30, 2023.

For the period December 1, 2022 (commencement of operations) through December 31, 2022, SSLP invested $ 18,100 in 7 portfolio companies.

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

SSLP Portfolio as of June 30, 2023

SSLP Portfolio as of September 30, 2023

Accession Risk Management Group, Inc.

Aegis Toxicology Sciences Corporation (4)

Health Care Providers & Services

Alkeme Intermediary Holdings, LLC (4)

All States Ag Parts, LLC (4)

Trading Companies & Distributors

Atria Wealth Solutions, Inc.

2 unchanged sentences

Health Care Providers & Services

CC SAG Holdings Corp.

Diversified Consumer Services

ENS Holdings III Corp.

5 unchanged sentences

Personal Products

Higginbotham Insurance Agency, Inc.

High Street Buyer, Inc.

9 unchanged sentences

Life Sciences Tools & Services

RSC Acquisition, Inc.

RxSense Holdings LLC (4)

2 unchanged sentences

Health Care Equipment & Supplies

The Townsend Company, LLC (4)

Commercial Services & Supplies

Tilley Distribution, Inc.

Trading Companies & Distributors

Ultimate Baked Goods Midco LLC (4)

Packaged Foods & Meats

Urology Management Holdings, Inc.

Health Care Providers & Services

Vessco Midco Holdings, LLC (4)

Water Utilities

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

1 unchanged sentence

Floating rate debt investments typically bear interest at a rate determined by reference to the SOFR (“S”), and which typically reset monthly, quarterly or semi-annually.

For each debt investment we have provided the current interest rate in effect as of June 30, 2023.

For each debt investment we have provided the current interest rate in effect as of September 30, 2023.

Represents the fair value in accordance with ASC Topic 820.

3 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

20 unchanged sentences

The Company also holds this security on its Consolidated Statements of Assets and Liabilities.

Below is certain summarized financial information for SSLP as of June 30, 2023 and December 31, 2022 and for the three and six months ended June 30, 2023 and for the period December 1, 2022 (commencement of operations) through December 31, 2022:

June 30, 2023

Below is certain summarized financial information for SSLP as of September 30, 2023 and December 31, 2022 and for the three and nine months ended September 30, 2023 and for the period December 1, 2022 (commencement of operations) through December 31, 2022:

September 30,

Selected Balance Sheet Information for SSLP:

2 unchanged sentences

Debt outstanding

Distributions payable

Interest payable and other credit facility related expenses

5 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)(continued)

June 30, 2023

September 30, 2023

(in thousands, except share amounts)

For the three

months ended June

September 30,

For the period

2 unchanged sentences

of operations) to

Selected Income Statement Information

Selected Income Statement Information for SSLP:

Interest income

12 unchanged sentences

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 July 5, 2023, the Board declared a monthly distribution of $ 0.136667 per share payable on August 1, 2023 to holders of record as of July 20, 2023.

On August 8, 2023, the Board declared a monthly distribution of $ 0.136667 per share payable on August 30, 2023 to holders of record as of August 18, 2023 .

Timing of Future Distributions

Effective with the fourth quarter of 2023, SLRC’s board of directors intends to adjust the timing of declaring and paying distributions to SLRC’s shareholders from monthly to quarterly.

As a result, SLRC’s management anticipates that the last monthly distribution, if declared by SLRC’s board of directors, will be for September 2023 and the next distribution after that, if declared by SLRC’s board of directors, will be a quarterly distribution for the fourth quarter of 2023.

The amount and timing of past distributions are not a guarantee of any future distributions or the amount thereof.

The payment, timing and amount of any future distributions will be determined by SLRC’s board of directors.

On November 7, 2023, the Board declared a quarterly distribution of $ 0.41 per share payable on December 28, 2023 to holders of record as of December 14, 2023.

Report of Independent Registered Public Accounting Firm

3 unchanged sentences

We have reviewed the consolidated statement of assets and liabilities of SLR Investment Corp.

(and subsidiaries) (the Company), including the consolidated schedule of investments, as of June 30, 2023, the related consolidated statements of operations and changes in net assets, for the three-month and six-month

periods ended June 30, 2023 and 2022, the related consolidated statements of cash flows for the six-month

periods ended June 30, 2023 and 2022, and the related notes (collectively, the consolidated interim financial information).

(and subsidiaries) (the Company), including the consolidated schedule of investments, as of September 30, 2023, the related consolidated statements of operations and changes in net assets, for the three-month and nine-month periods ended September 30, 2023 and 2022, the related consolidated statements of cash flows for the nine-month periods ended September 30, 2023 and 2022, 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.

12 unchanged sentences

New York, New York

August 8, 2023

November 7, 2023

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