What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-10 compared with 2021-11-09 · 1182 added, 768 removed, 1333 unchanged (59% of the section changed)

3 unchanged sentences

(in thousands, except share and per share data)

September 30, 2021

March 31, 2022

December 31, 2021

11 unchanged sentences

Prepaid expenses and other receivables

Unrealized appreciation on foreign currency forward contracts

Receivable for common stock issued

Distributions payable

1 unchanged sentence

Incentive fees payable

Amounts payable on unsettled investment transactions

Interest payable

1 unchanged sentence

Advances received from unfunded credit facilities

Unrealized depreciation on foreign currency forward contracts

Total liabilities

11 unchanged sentences

(in thousands, except share and per share data)

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

Investment income

3 unchanged sentences

From non-controlled affiliate company investments

Interest income

Dividend income

40 unchanged sentences

Stock issued in connection with at-the-market offering

Stock issued in connection with distribution reinvestment plan

Net increase in net assets resulting from operations:

4 unchanged sentences

Balance at March 31, 2022

Stock issued in connection with at-the-market offering

Stock issued in connection with dividend reinvestment plan

Net increase in net assets resulting from operations:

Net investment income after excise tax

Net realized gains (losses) on investments

Net change in unrealized appreciation (depreciation) on investments

Distributions declared

Balance at June 30, 2021

Stock issued in connection with at-the-market offering

Stock issued in connection with dividend reinvestment plan

Net increase in net assets resulting from operations:

Net investment income after excise tax

Net realized gains (losses) on investments

Net change in unrealized appreciation (depreciation) on investments

Distributions declared

Balance at September 30, 2021

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Statements of Changes in Net Assets (Unaudited)

(in thousands, except share and per share data)

Paid-in Capital in Excess of Par

2 unchanged sentences

Balance at December 31, 2020

Stock issued in connection with at-the-market offering

Stock issued in connection with distribution reinvestment plan

Net increase in net assets resulting from operations:

4 unchanged sentences

Balance at March 31, 2021

Net increase in net assets resulting from operations:

Net investment income after excise tax

Net realized gains (losses) on investments

Net change in unrealized appreciation (depreciation) on investments

Distributions declared

Balance at June 30, 2020

Net increase in net assets resulting from operations:

Net investment income after excise tax

Net realized gains (losses) on investments

Net change in unrealized appreciation (depreciation) on investments

Distributions declared

Balance at September 30, 2020

See notes to the consolidated financial statements

2 unchanged sentences

(in thousands)

Nine months ended September 30,

Three months ended March 31,

Cash flows from operating activities

Net increase 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:

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

Paid-in-kind income

Net realized gains on investments

Net realized (gains) losses on investments

Net unrealized depreciation (appreciation) on investments

19 unchanged sentences

Cash flows from financing activities

Proceeds from sales of common stock, net of offering costs

Proceeds from issuance of common stock, net of offering costs

Repayments of debt

6 unchanged sentences

Cash, cash equivalents and restricted cash at end of period

Supplemental disclosure of cash flow information:

Supplemental and non-cash disclosure of cash flow information:

Interest paid

Distributions reinvested

Value of shares issued pursuant to the ATM Program

Non-cash exchanges of investments

4 unchanged sentences

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of assets and liabilities that sum to the total of the same amounts presented in the consolidated statements of cash flows:

September 30,

As of March 31,

Cash and cash equivalents

Restricted cash and restricted foreign currency

Restricted cash and cash equivalents

Restricted foreign currency

Total cash, cash equivalents and restricted cash presented in consolidated statements of cash flows

2 unchanged sentences

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

March 31, 2022

(in thousands)

2 unchanged sentences

Debt Investments

SmartSign Holdings LLC

Asset Management & Custody Banks

JZ Capital Partners Ltd.

First Lien Secured Term Loan

JZ Capital Partners Ltd.

First Lien Secured Delayed Draw Loan

Air Freight & Logistics

Access USA Shipping, LLC

Access USA Shipping, LLC (d/b/a MyUS.com)

First Lien Secured Term Loan

Motivational Marketing, LLC

Motivational Marketing, LLC (d/b/a Motivational Fulfillment)

First Lien Secured Term Loan

Motivational Marketing, LLC (7)(12)

Motivational Marketing, LLC (d/b/a Motivational Fulfillment) (7)

First Lien Secured Revolving Loan

Application Software

Atlas Purchaser, Inc (dba Aspect Software)

Atlas Purchaser, Inc.

(d/b/a Aspect Software)

Second Lien Secured Term Loan

Newscycle Solutions, Inc

Education Networks of America, Inc.

First Lien Secured Term Loan

Newscycle Solutions, Inc (7)

First Lien Secured Revolving Loan

TaxSlayer LLC

(f/k/a Newscycle Solutions, Inc.)

First Lien Secured Term Loan

TaxSlayer LLC (7)

(f/k/a Newscycle Solutions, Inc.) (7)

First Lien Secured Revolving Loan

Automotive Retail

Team Car Care Holdings, LLC (12)

Team Car Care Holdings, LLC (Heartland Auto) (12)

First Lien Secured Term Loan

Base rate+ 7.98%

Coastal Television Broadcasting Group LLC

First Lien Secured Term Loan

Coastal Television Broadcasting Group LLC (7)

First Lien Secured Revolving Loan

Building Products

Drew Foam Companies Inc

PFB Holdco, Inc.

(d/b/a PFB Corporation) (13)

First Lien Secured Term Loan

LHS Borrower, LLC

PFB Holdco, Inc.

(d/b/a PFB Corporation) (7)(13)

First Lien Secured Revolving Loan

PFB Holdco, Inc.

(d/b/a PFB Corporation)

First Lien Secured Term Loan

LHS Borrower, LLC (7)

PFB Holdco, Inc.

(d/b/a PFB Corporation) (7)

First Lien Secured Revolving Loan

Trimlite Buyer LLC (5)(13)

Trimlite Buyer LLC (d/b/a Trimlite LLC) (5)(13)

First Lien Secured Term Loan

Trimlite Buyer LLC (5)(7)(13)

Trimlite Buyer LLC (d/b/a Trimlite LLC) (5)(7)

First Lien Secured Revolving Loan

2 unchanged sentences

First Lien Secured Term Loan

Commodity Chemicals

Flexitallic Group SAS

First Lien Secured Term Loan

8.51% (8.01% Cash + 0.50% PIK)

Construction & Engineering

Tensar Corporation

First Lien Secured Term Loan

4 unchanged sentences

First Lien Secured Revolving Loan

Commodity Chemicals

Flexitallic Group SAS

First Lien Secured Term Loan

8.50% (8.00% Cash + 0.50% PIK)

Base rate+ 5.64%

Consumer Finance

3 unchanged sentences

First Lien Secured Revolving Loan

Data Processing & Outsourced Services

Escalon Services Inc

First Lien Secured Term Loan

14.50% (13.00% Cash + 1.50% PIK)

FPT Operating Company, LLC/ TLabs Operating Company, LLC

First Lien Secured Term Loan

See notes to the consolidated financial statements

1 unchanged sentence

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

March 31, 2022

(in thousands)

Investment Type (1)

Data Processing & Outsourced Services

Escalon Services Inc.

First Lien Secured Term Loan

11.30% (10.60% Cash + 0.70% PIK)

Future Payment Technologies, L.P.

First Lien Secured Term Loan

Department Stores

6 unchanged sentences

Diversified Chemicals

Manchester Acquisition Sub LLC (d/b/a Draslovka Holding AS)

First Lien Secured Term Loan

Sklar Holdings, Inc.

(d/b/a Starco)

First Lien Secured Term Loan

10.75% (8.75% Cash + 2.00% PIK)

Diversified Support Services

10 unchanged sentences

First Lien Secured Revolving Loan

8.00% (7.50% Cash + 0.50% PIK)

EducationDynamics, LLC (4)

Subordinated Unsecured Term Loan

Electronic Equipment & Instruments

LMG Holdings, Inc

Electric Utilities

CleanChoice Energy, Inc.

(d/b/a CleanChoice)

First Lien Secured Term Loan

LMG Holdings, Inc (7)

Environmental & Facilities Services

Industrial Specialty Services USA LLC

First Lien Secured Term Loan

Industrial Specialty Services USA LLC (7)

First Lien Secured Revolving Loan

Health Care Facilities

Epiphany Dermatology

RLJ Pro-Vac, Inc.

(d/b/a Pro-Vac)

First Lien Secured Term Loan

Epiphany Dermatology (7)

RLJ Pro-Vac, Inc.

(d/b/a Pro-Vac) (7)

First Lien Secured Revolving Loan

Epiphany Dermatology (7)

Health Care Facilities

Bridgepoint Healthcare, LLC

First Lien Secured Term Loan

Bridgepoint Healthcare, LLC (7)

First Lien Secured Delayed Draw Loan

Grupo HIMA San Pablo, Inc (8)

First Lien Secured Term Loan A

Grupo HIMA San Pablo, Inc (8)

First Lien Secured Term Loan B

Grupo HIMA San Pablo, Inc (8)

Second Lien Secured Term Loan

15.75% (13.75% Cash + 2.00% PIK)

Bridgepoint Healthcare, LLC (7)

First Lien Secured Revolving Loan

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2022

(in thousands)

Investment Type (1)

Health Care Services

5 unchanged sentences

10.50% (10.00% Cash + 0.50% PIK)

DCA Investment Holding, LLC

First Lien Secured Term Loan

DCA Investment Holding, LLC (7)

First Lien Secured Delayed Draw Loan

IvyRehab Intermediate II, LLC

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab)

First Lien Secured Term Loan

IvyRehab Intermediate II, LLC (7)

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab) (7)

First Lien Secured Delayed Draw Loan

IvyRehab Intermediate II, LLC (7)

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab) (7)

First Lien Secured Revolving Loan

9 unchanged sentences

10.75% (9.25% Cash + 1.50% PIK)

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)

Investment Type (1)

Health Care Supplies

ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)

First Lien Secured Term Loan

ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC) (7)

First Lien Secured Revolving Loan

Base rate+ 6.83%

Heavy Electrical Equipment

PPS CR Acquisition, Inc (dba Power Plant Services)

PPS CR Acquisition, Inc.

(d/b/a Power Plant Services)

First Lien Secured Term Loan

PPS CR Acquisition, Inc (dba Power Plant Services) (7)

PPS CR Acquisition, Inc.

(d/b/a Power Plant Services) (7)

First Lien Secured Revolving Loan

Home Furnishings

Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)

First Lien Secured Term Loan

Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC) (7)

First Lien Secured Revolving Loan

Sure Fit Home Products, LLC

1 unchanged sentence

Household Products

The Kyjen Company, LLC (dba Outward Hound)

The Kyjen Company, LLC (d/b/a Outward Hound)

First Lien Secured Term Loan

The Kyjen Company, LLC (dba Outward Hound) (7)

The Kyjen Company, LLC (d/b/a Outward Hound) (7)

First Lien Secured Revolving Loan

Interactive Media & Services

What If Media Group, LLC

What If Holdings, LLC (d/b/a What If Media Group, LLC)

First Lien Secured Term Loan

Internet & Direct Marketing Retail

BBQ Buyer, LLC

BBQ Buyer, LLC (d/b/a BBQ Guys)

First Lien Secured Term Loan

11.50% (9.50% Cash + 2.00% PIK)

BBQ Buyer, LLC (d/b/a BBQ Guys) (7)

First Lien Secured Delayed Draw Loan

11.50% (9.50% Cash + 2.00% PIK)

Luxury Brand Holdings, Inc.

First Lien Secured Term Loan

Marlin DTC-LS Midco 2, LLC

(d/b/a Ross-Simons, Inc.)

First Lien Secured Term Loan

2 unchanged sentences

Investment Banking & Brokerage

JVMC Holdings Corp (f/k/a RJO Holdings Corp)

JVMC Holdings Corp.

(fka RJO Holdings Corp)

First Lien Secured Term Loan

IT Consulting & Other Services

AST-Applications Software Technology LLC

First Lien Secured Term Loan

9.00% (8.00% Cash + 1.00% PIK)

Core BTS, Inc

First Lien Secured Term Loan

Core BTS, Inc

First Lien Secured Delayed Draw Loan

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2022

(in thousands)

Investment Type (1)

Leisure Facilities

Honors Holdings, LLC (16)

Honors Holdings, LLC (d/b/a Orange Theory) (16)

First Lien Secured Term Loan

8.92% (8.42% Cash + 0.50% PIK)

Honors Holdings, LLC (16)

Honors Holdings, LLC (d/b/a Orange Theory) (16)

First Lien Secured Delayed Draw Loan

8.63% (8.05% Cash + 0.58% PIK)

Lift Brands, Inc (aka Snap Fitness Holdings, Inc)

Lift Brands, Inc.

(d/b/a Snap Fitness)

First Lien Secured Term Loan A

Lift Brands, Inc (aka Snap Fitness Holdings, Inc)

Lift Brands, Inc.

(d/b/a Snap Fitness)

First Lien Secured Term Loan B

9.50% (0.00% Cash + 9.50% PIK)

Lift Brands, Inc (aka Snap Fitness Holdings, Inc) (9)

Snap Fitness Holdings, Inc.

(d/b/a Lift Brands, Inc.) (9)

First Lien Secured Term Loan C

1 unchanged sentence

Leisure Products

PlayMonster LLC

Playmonster Group LLC (6)(20)(22)

First Lien Secured Term Loan

9.00% (0.00% Cash + 9.00% PIK)

PlayMonster LLC (6)(7)

First Lien Secured Delayed Draw Loan

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)

Investment Type (1)

First Lien Secured Revolving Loan

Life Sciences Tools & Services

LSCS Holdings, Inc.

(d/b/a Eversana Life Science Services, LLC)

Second Lien Secured Term Loan

Office Services & Supplies

1 unchanged sentence

First Lien Secured Term Loan

American Crafts, LC

First Lien Secured Delayed Draw Loan

Empire Office, Inc.

11 unchanged sentences

First Lien Secured Revolving Loan

Property & Casualty Insurance

Policy Services Company, LLC (5)

First Lien Secured Term Loan

Research & Consulting Services

First Lien Secured Term Loan

ALM Media, LLC

4 unchanged sentences

Specialized Consumer Services

Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)

First Lien Secured Term Loan

Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.) (4)(7)

First Lien Secured Delayed Draw Loan

HC Salon Holdings, Inc.

(d/b/a Hair Cuttery)

First Lien Secured Term Loan

HC Salon Holdings, Inc.

(d/b/a Hair Cuttery) (7)

First Lien Secured Revolving Loan

3 unchanged sentences

First Lien Secured Delayed Draw Loan

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2022

(in thousands)

Investment Type (1)

Specialized Finance

Golden Pear Funding Assetco, LLC (5)

Second Lien Secured Term Loan

WHF STRS Ohio Senior Loan Fund LLC (4)(5)(9)(14)

1 unchanged sentence

Systems Software

Arcstor Midco, LLC

Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC

First Lien Secured Term Loan

Technology Hardware, Storage & Peripherals

Source Code Midco, LLC

First Lien Secured Term Loan

Source Code Midco, LLC (7)

First Lien Secured Delayed Draw Loan

Telestream Holdings Corporation

4 unchanged sentences

Equity Investments (23)

Avision Holdings, LLC (d/b/a Avision Sales Group) (4)

Class A LLC Interests

Air Freight & Logistics

Motivational CIV, LLC (dba Motivational Marketing, LLC) (4)

Motivational CIV, LLC (d/b/a Motivational Fulfillment) (4)

Class B Units

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

(in thousands)

Investment Type (1)

Building Products

PFB Holdco, Inc.

(d/b/a PFB Corporation) (4)(13)

Class A Units

Data Processing & Outsourced Services

6 unchanged sentences

Education Services

EducationDynamics, LLC (4)

Eddy Acquisitions, LLC (d/b/a EducationDynamics, LLC) (4)

Preferred Units

Environmental & Facilities Services

BPII-JL Group Holdings LP (d/b/a Juniper Landscaping Holdings LLC) (4)

Class A Units

Health Care Services

Lab Logistics (4)(20)

Lab Logistics, LLC (4)(21)

Preferred Units

Industrial Machinery

BL Products Parent, LP (d/b/a Bishop Lifting Products, Inc.) (4)

Class A Units

Interactive Media & Services

What If Media Group, LLC (4)

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

March 31, 2022

(in thousands)

Investment Type (1)

Internet & Direct Marketing Retail

BBQ Buyer, LLC (4)

Ross-Simons Topco, LP (4)

BBQ Buyer, LLC (d/b/a BBQ Guys) (4)

Ross-Simons Topco, LP (d/b/a Ross-Simons, Inc.) (4)

Preferred Units

Investment Banking & Brokerage

Arcole Holding Corp.

(4)(5)(6)(18)

Arcole Holding Corporation (4)(5)(6)(18)

IT Consulting & Other Services

CX Holdco LLC (4)

Keras Holdings, LLC (4)

CX Holdco LLC (d/b/a Cennox Inc.) (4)

Keras Holdings, LLC (d/b/a KSM Consulting, LLC) (4)

Leisure Facilities

Lift Brands, Inc (aka Snap Fitness Holdings, Inc) (4)

Snap Fitness Holdings, Inc.

(d/b/a Lift Brands, Inc.) (4)

Class A Common Stock

Lift Brands, Inc (aka Snap Fitness Holdings, Inc) (4)

Snap Fitness Holdings, Inc.

(d/b/a Lift Brands, Inc.) (4)

Leisure Products

Playmonster Group Equity, Inc.

(d/b/a PlayMonster LLC) (4)(6)(8)(22)

Preferred Stock

Playmonster Group Equity, Inc.

(d/b/a PlayMonster LLC) (4)(6)(22)

Other Diversified Financial Services

SFS Global Holding Company (4)

SFS Global Holding Company (d/b/a Sigue Corporation) (4)

Sigue Corporation (4)

Specialized Consumer Services

Camp Facility Services Parent, LLC (d/b/a Camp Construction Services, Inc.) (4)

Preferred Units

Specialized Finance

8 unchanged sentences

Morgan Stanley

(1) Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), and provide collateral for the Company’s credit facility.

See notes to the consolidated financial statements

1 unchanged sentence

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

March 31, 2022

(in thousands)

(2) The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets monthly, quarterly or semiannually, the Canadian Dollar Offered Rate (“CDOR” or “C”), or the U.S.

Prime Rate as published by the Wall Street Journal (“Prime” or “P”).

The one, three and six-month USD LIBOR were 0.08%, 0.13% and 0.16%, respectively, as of September 30, 2021.

The CDOR and Prime was 0.45% and 3.25%, respectively, as of September 30, 2021.

(2) The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets monthly, quarterly or semiannually, the Secured Overnight Financing Rate (“SOFR” or “SF”), the Canadian Dollar Offered Rate (“CDOR” or “C”), Canada Prime Rate (“CP”) or the U.S.

Prime Rate (“Prime” or “P”).

The one, three and six-month USD LIBOR were 0.45%, 0.96% and 1.47%, respectively, as of March 31, 2022.

The SOFR, CDOR, CP and Prime were 0.29%, 1.26%, 2.70% and 3.50%, respectively, as of March 31, 2022.

(3) The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

4 unchanged sentences

(6) Investment is a non-controlled affiliate investment as defined by the 1940 Act.

(7) The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of September 30, 2021.

(8) The investment is on non-accrual status.

(7) The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of March 31, 2022.

(8) Preferred equity investment is a non-income producing security.

(9) Security is perpetual with no defined maturity date.

12 unchanged sentences

The issuer may elect to pay up to 2.00% PIK.

(20) At the option of the issuer, interest can be paid in cash or cash and PIK.

The issuer may elect to pay up to 9.00% PIK.

(21) Investment earns 14.00% that converts to PIK on an annual basis and is recorded in interest and dividend receivable in the consolidated statements of assets and liabilities.

(22) On January 24, 2022, as part of a restructuring agreement between the Company and PlayMonster LLC, the Company’s first lien secured term loan and delayed draw loan investments to PlayMonster LLC were converted into a new first lien secured term loan, preferred stock and common stock of Playmonster Group LLC.

(23) Ownership of certain equity investments may occur through a holding company or partnership.

See notes to the consolidated financial statements

6 unchanged sentences

Debt Investments

First Lien Secured Term Loan

(0.50% Floor)

SmartSign Holdings LLC

First Lien Secured Term Loan

(1.00% Floor)

Agricultural & Farm Machinery

Bad Boy Mowers Acquisition, LLC

I&I Sales Group, LLC (d/b/a Avision Sales Group)

First Lien Secured Term Loan

(1.00% Floor)

I&I Sales Group, LLC (d/b/a Avision Sales Group) (4)(7)

First Lien Secured Delayed Draw Loan

I&I Sales Group, LLC (d/b/a Avision Sales Group) (7)

First Lien Secured Revolving Loan

Air Freight & Logistics

Access USA Shipping, LLC

Access USA Shipping, LLC (d/b/a MyUS.com)

First Lien Secured Term Loan

(1.50% Floor)

Application Software

Connexity, Inc.

ITS Buyer Inc.

(d/b/a ITS Logistics, LLC)

First Lien Secured Term Loan

(1.50% Floor)

Newscycle Solutions, Inc.

ITS Buyer Inc.

(d/b/a ITS Logistics, LLC) (7)

First Lien Secured Revolving Loan

Motivational Marketing, LLC (d/b/a Motivational Fulfillment)

First Lien Secured Term Loan

(1.00% Floor)

Motivational Marketing, LLC (d/b/a Motivational Fulfillment) (7)

First Lien Secured Revolving Loan

(1.00% Floor)

TaxSlayer LLC

Application Software

Atlas Purchaser, Inc.

(d/b/a Aspect Software)

Second Lien Secured Term Loan

Education Networks of America, Inc.

First Lien Secured Term Loan

(1.00% Floor)

(f/k/a Newscycle Solutions, Inc.)

First Lien Secured Term Loan

(f/k/a Newscycle Solutions, Inc.) (7)

First Lien Secured Revolving Loan

(1.00% Floor)

Automotive Retail

Team Car Care Holdings, LLC

Team Car Care Holdings, LLC (Heartland Auto) (12)

First Lien Secured Term Loan

Base rate+ 7.98%

(1.00% Floor)

BW Gas & Convenience Holdings, LLC

First Lien Secured Term Loan

(0.00% Floor)

Alpha Media, LLC

Coastal Television Broadcasting Group LLC

First Lien Secured Term Loan

(2.00% Floor)

Coastal Television Broadcasting Group LLC (7)

First Lien Secured Revolving Loan

Building Products

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

LHS Borrower, LLC (d/b/a Leaf Home, LLC)

First Lien Secured Term Loan

LHS Borrower, LLC (d/b/a Leaf Home, LLC) (7)

First Lien Secured Revolving Loan

(1.00% Floor)

LHS Borrower, LLC

PFB Holdco, Inc.

(d/b/a PFB Corporation) (13)

First Lien Secured Term Loan

(1.00% Floor)

PFB Holdco, Inc.

(d/b/a PFB Corporation) (7)(13)

First Lien Secured Revolving Loan

(1.00% Floor)

PFB Holdco, Inc.

(d/b/a PFB Corporation)

First Lien Secured Term Loan

PFB Holdco, Inc.

(d/b/a PFB Corporation) (7)

First Lien Secured Revolving Loan

Trimlite Buyer LLC (d/b/a Trimlite LLC) (5)(13)

First Lien Secured Term Loan

Trimlite Buyer LLC (d/b/a Trimlite LLC) (5)(7)

First Lien Secured Revolving Loan

Cable & Satellite

Bulk Midco, LLC (15)

First Lien Secured Term Loan

Commodity Chemicals

Flexitallic Group SAS

First Lien Secured Term Loan

8.50% (8.00% Cash + 0.50% PIK)

See notes to the consolidated financial statements

4 unchanged sentences

Investment Type (1)

Cable & Satellite

Bulk Midco, LLC

First Lien Secured Term Loan (15)

(1.00% Floor)

Communications Equipment

Ribbon Communications Operating

Company, Inc.

First Lien Secured Term Loan (5)

(0.00% Floor)

Sorenson Communications, LLC

First Lien Secured Term Loan

(0.00% Floor)

Construction & Engineering

Atlas Intermediate Holdings LLC

First Lien Secured Term Loan

(1.00% Floor)

Road Safety Services, Inc.

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Revolving Loan (7)

(1.00% Floor)

Tensar Corporation

First Lien Secured Term Loan

(1.00% Floor)

Construction Materials

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

Claridge Products and Equipment, LLC (7)

First Lien Secured Revolving Loan

(1.00% Floor)

Consumer Finance

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

Maxitransfers Blocker Corp.

First Lien Secured Revolving Loan

(1.00% Floor)

Data Processing & Outsourced Services

1 unchanged sentence

First Lien Secured Term Loan

(0.75% Floor)

FPT Operating Company, LLC/

TLabs Operating Company, LLC

First Lien Secured Term Loan

(1.00% Floor)

Geo Logic Systems Ltd.

14.50% (13.00% Cash + 1.50% PIK)

Future Payment Technologies, L.P.

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Revolving Loan (7) (13)

(1.00% Floor)

See notes to the consolidated financial statements

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands)

Investment Type (1)

Department Stores

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

Crown Brands LLC (19)

Second Lien Secured Term Loan

(1.50% Floor)

Crown Brands LLC (19)

Second Lien Secured Delayed Draw Loan

(1.50% Floor)

Diversified Chemicals

Manchester Acquisition Sub LLC (d/b/a Draslovka Holding AS)

First Lien Secured Term Loan

Sklar Holdings, Inc.

(d/b/a Starco)

First Lien Secured Term Loan

(1.00% Floor)

Diversified Support Services

ImageOne Industries, LLC

First Lien Secured Term Loan

11.00% (4.00%PIK)

(1.00% Floor)

First Lien Secured Revolving Loan (4)(7)

11.00% (4.00%PIK)

(1.00% Floor)

NNA Services, LLC

First Lien Secured Term Loan

(1.50% Floor)

Education Services

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

AG Kings Holdings, Inc.

8.00% (7.50% Cash + 0.50% PIK)

EducationDynamics, LLC (4)(7)

First Lien Secured Delayed Draw Loan

8.00% (7.50% Cash + 0.50% PIK)

EducationDynamics, LLC (7)

First Lien Secured Revolving Loan

8.00% (7.50% Cash + 0.50% PIK)

EducationDynamics, LLC (4)

Subordinated Unsecured Term Loan

Electric Utilities

CleanChoice Energy, Inc.

(d/b/a CleanChoice)

First Lien Secured Term Loan

16.25% (2.00%PIK)

(0.75% Floor)

Superpriority Secured Debtor-In- Possession Term Loan (4)(18)

(1.00% Floor)

Electronic Equipment & Instruments

LMG Holdings, Inc.

First Lien Secured Term Loan

LMG Holdings, Inc.

First Lien Secured Revolving Loan

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2021

(in thousands)

Investment Type (1)

Environmental & Facilities Services

Industrial Specialty Services USA LLC

First Lien Secured Term Loan

Industrial Specialty Services USA LLC (7)

First Lien Secured Revolving Loan

Juniper Landscaping Holdings LLC

First Lien Secured Term Loan

Juniper Landscaping Holdings LLC (7)

First Lien Secured Delayed Draw Loan

Juniper Landscaping Holdings LLC (7)

First Lien Secured Revolving Loan

RLJ Pro-Vac, Inc.

(d/b/a Pro-Vac)

First Lien Secured Term Loan

RLJ Pro-Vac, Inc.

(d/b/a Pro-Vac) (7)

First Lien Secured Revolving Loan

Health Care Facilities

Epiphany Dermatology

Bridgepoint Healthcare, LLC

First Lien Secured Term Loan

(1.00% Floor)

Bridgepoint Healthcare, LLC (7)

First Lien Secured Delayed Draw Loan

Bridgepoint Healthcare, LLC (7)

First Lien Secured Revolving Loan

(1.00% Floor)

Epiphany Business Services, LLC (d/b/a Epiphany Dermatology, PA)

First Lien Secured Term Loan

Epiphany Business Services, LLC (d/b/a Epiphany Dermatology, PA)

First Lien Secured Delayed Draw Loan

(1.00% Floor)

Epiphany Business Services, LLC (d/b/a Epiphany Dermatology, PA) (7)

First Lien Secured Revolving Loan

Grupo HIMA San Pablo, Inc.

Superpriority Delayed Draw Loan

Grupo HIMA San Pablo, Inc.

Amended Term Loan

10.50% (0.00% Cash + 10.50% PIK)

Grupo HIMA San Pablo, Inc.

First Lien Secured Term Loan A

Grupo HIMA San Pablo, Inc.

First Lien Secured Term Loan B

(1.50% Floor)

Grupo HIMA San Pablo, Inc.

Second Lien Secured Term Loan

15.75% (2.00%PIK)

15.75% (13.75% Cash + 2.00% PIK)

Health Care Services

1 unchanged sentence

First Lien Secured Term Loan A

(1.50% Floor)

10.50% (10.00% Cash + 0.50% PIK)

CHS Therapy, LLC

First Lien Secured Term Loan C

(1.50% Floor)

See notes to the consolidated financial statements

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands)

Investment Type (1)

Ivy Rehab Holdings LLC

10.50% (10.00% Cash + 0.50% PIK)

DCA Investment Holding, LLC (d/b/a Dental Care Alliance, LLC)

First Lien Secured Term Loan

(1.00% Floor)

DCA Investment Holding, LLC (d/b/a Dental Care Alliance, LLC) (7)

First Lien Secured Delayed Draw Loan

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab)

First Lien Secured Term Loan

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab) (7)

First Lien Secured Delayed Draw Loan

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab) (7)

First Lien Secured Revolving Loan

(1.00% Floor)

First Lien Secured Delayed Draw

(1.00% Floor)

Lab Logistics, LLC

First Lien Secured Term Loan

(1.00% Floor)

Lab Logistics, LLC

First Lien Secured Delayed Draw Loan

(1.00% Floor)

PG Dental New Jersey Parent, LLC

First Lien Secured Term Loan

(1.00% Floor)

10.25% (8.75% Cash + 1.50% PIK)

PG Dental New Jersey Parent, LLC (7)

First Lien Secured Revolving Loan

(1.00% Floor)

10.25% (8.75% Cash + 1.50% PIK)

Heavy Electrical Equipment

PPS CR Acquisition, Inc.

(d/b/a Power Plant Services)

First Lien Secured Term Loan

PPS CR Acquisition, Inc.

(d/b/a Power Plant Services) (7)

First Lien Secured Revolving Loan

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2021

(in thousands)

Investment Type (1)

Home Furnishings

Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)

First Lien Secured Term Loan

Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC) (7)

First Lien Secured Revolving Loan

Sure Fit Home Products, LLC

First Lien Secured Term Loan

(1.00% Floor)

Household Products

The Kyjen Company, LLC (d/b/a Outward Hound)

First Lien Secured Term Loan

The Kyjen Company, LLC (d/b/a Outward Hound) (7)

First Lien Secured Revolving Loan

Interactive Media & Services

What If Media Group, LLC

What If Holdings, LLC (d/b/a What If Media Group, LLC)

First Lien Secured Term Loan

(1.00% Floor)

Internet & Direct Marketing Retail

BBQ Buyer, LLC

BBQ Buyer, LLC (d/b/a BBQ Guys)

First Lien Secured Term Loan

(1.50% Floor)

First Lien Secured Revolving Loan (7)

(1.50% Floor)

11.50% (9.50% Cash + 2.00% PIK)

BBQ Buyer, LLC (d/b/a BBQ Guys) (7)

First Lien Secured Delayed Draw Loan

11.50% (9.50% Cash + 2.00% PIK)

Luxury Brand Holdings, Inc.

(d/b/a Ross-Simons, Inc.)

First Lien Secured Term Loan

(1.00% Floor)

Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)

First Lien Secured Term Loan

Potpourri Group, Inc.

First Lien Secured Term Loan

(1.50% Floor)

Investment Banking & Brokerage

JVMC Holdings Corp.

(f/k/a RJO Holdings Corp)

(fka RJO Holdings Corp)

First Lien Secured Term Loan

(1.00% Floor)

IT Consulting & Other Services

1 unchanged sentence

First Lien Secured Term Loan

9.00% (1.00%PIK)

(1.00% Floor)

RCKC Acquisitions LLC (dba KSM Consulting LLC)

9.00% (8.00% Cash + 1.00% PIK)

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Revolving Loan (7)

(1.00% Floor)

Leisure Facilities

Honors Holdings, LLC (d/b/a Orange Theory) (16)

First Lien Secured Term Loan

8.96% (8.46% Cash + 0.50% PIK)

Honors Holdings, LLC (d/b/a Orange Theory) (16)

First Lien Secured Delayed Draw Loan

(1.00% Floor)

8.58% (8.08% Cash + 0.50% PIK)

Lift Brands, Inc.

(d/b/a Snap Fitness)

First Lien Secured Term Loan A

Lift Brands, Inc.

(d/b/a Snap Fitness)

First Lien Secured Term Loan B

9.50% (0.00% Cash + 9.50% PIK)

Snap Fitness Holdings, Inc.

(d/b/a Lift Brands, Inc.) (9)

First Lien Secured Term Loan C

9.50% (0.00% Cash + 9.50% PIK)

Leisure Products

PlayMonster LLC (8)

First Lien Secured Term Loan

PlayMonster LLC (7)(8)

First Lien Secured Delayed Draw Loan

Life Sciences Tools & Services

LSCS Holdings, Inc.

(d/b/a Eversana Life Science Services, LLC)

Second Lien Secured Term Loan

See notes to the consolidated financial statements

3 unchanged sentences

(in thousands)

Fair Value As A

Investment Type (1)

Leisure Facilities

Honors Holdings, LLC

First Lien Secured Term Loan (16)

(1.00% Floor)

First Lien Secured Delayed Draw

(1.00% Floor)

Lift Brands, Inc.

(aka Snap Fitness Holdings, Inc)

First Lien Secured Term Loan A

(1.00% Floor)

First Lien Secured Term Loan B

First Lien Secured Term Loan C (9)

Office Services & Supplies

American Crafts, LC

First Lien Secured Term Loan

Empire Office, Inc.

First Lien Secured Term Loan

(1.50% Floor)

Empire Office, Inc.

First Lien Secured Delayed Draw Loan

Packaged Foods & Meats

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

9.40% (7.68% Cash + 1.72% PIK)

Personal Products

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Revolving

(1.00% Floor)

Property & Casualty Insurance

Policy Services Company, LLC

Inspired Beauty Brands, Inc.

First Lien Secured Revolving Loan

Real Estate Operating Companies

HRG Management, LLC (d/b/a HomeRiver Group, LLC)

First Lien Secured Term Loan

(1.00% Floor)

HRG Management, LLC (d/b/a HomeRiver Group, LLC) (7)

First Lien Secured Delayed Draw Loan

HRG Management, LLC (d/b/a HomeRiver Group, LLC) (7)

First Lien Secured Revolving Loan

Research & Consulting Services

Comniscient Technologies LLC

ALM Media, LLC

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Revolving

(1.00% Floor)

Nelson Worldwide, LLC

First Lien Secured Term Loan

(1.00% Floor)

ALM Media, LLC

11.25% (10.25% Cash + 1.00% PIK)

Specialized Consumer Services

Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)

First Lien Secured Term Loan

(1.00% Floor)

LS GFG Holdings Inc.

Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.) (4)(7)

First Lien Secured Delayed Draw Loan

Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.) (7)

First Lien Secured Revolving Loan

HC Salon Holdings, Inc.

(d/b/a Hair Cuttery)

First Lien Secured Term Loan

(1.00% Floor)

Specialized Consumer Services

HC Salon Holdings, Inc.

(d/b/a Hair Cuttery) (7)

First Lien Secured Revolving Loan

True Blue Car Wash, LLC

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Delayed Draw

(1.00% Floor)

See notes to the consolidated financial statements

WHITEHORSE FINANCE, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

(in thousands)

Investment Type (1)

True Blue Car Wash, LLC (7)

First Lien Secured Delayed Draw Loan

Specialized Finance

Golden Pear Funding Assetco, LLC (5)

Second Lien Secured Term Loan

Oasis Legal Finance, LLC (5)

Second Lien Secured Term Loan

WHF STRS Ohio Senior Loan Fund LLC (4)(5)(9)(14)

Subordinated Note

Specialty Chemicals

Flexitallic Group SAS

First Lien Secured Term Loan

Systems Software

Vero Parent, Inc.

Arcstor Midco, LLC (d/b/a Arcserve (USA), LLC

First Lien Secured Term Loan

Technology Hardware, Storage & Peripherals

Source Code Midco, LLC

Source Code Holdings, LLC (d/b/a Source Code Corporation)

First Lien Secured Term Loan

Source Code Holdings, LLC (d/b/a Source Code Corporation) (7)

First Lien Secured Delayed Draw Loan

Telestream Holdings Corporation

First Lien Secured Term Loan

Telestream Holdings Corporation (7)

First Lien Secured Revolving Loan

Total Debt Investments

See notes to the consolidated financial statements

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments

December 31, 2021

(in thousands)

Investment Type (1)

Equity Investments

Avision Holdings, LLC (d/b/a Avision Sales Group) (4)

Class A LLC Interests

Air Freight & Logistics

Motivational CIV, LLC (d/b/a Motivational Fulfillment) (4)

Class B Units

Data Processing & Outsourced Services

Escalon Services Inc Warrants (4)

PFB Holdco, Inc.

(d/b/a PFB Corporation) (4)(13)

Class A Units

Data Processing & Outsourced Services

Escalon Services Inc.

Diversified Support Services

Quest Events, LLC Preferred Units (4)

ImageOne Industries, LLC Common A Units (4)

Quest Events, LLC (4)

Preferred Units

ImageOne Industries, LLC (4)

Common A Units

Education Services

Eddy Acquisitions, LLC (d/b/a EducationDynamics, LLC) (4)

Preferred Units

Environmental & Facilities Services

BPII-JL Group Holdings LP (d/b/a Juniper Landscaping Holdings LLC) (4)

Class A Units

Health Care Services

Lab Logistics Preferred Units (4)

Lab Logistics, LLC (4)(20)

Preferred Units

Interactive Media & Services

What If Media Group, LLC (4)

Internet & Direct Marketing Retail

BBQ Buyer, LLC Shares (4)

Ross-Simons Topco, LP Preferred Units (4)

BBQ Buyer, LLC (d/b/a BBQ Guys) (4)

Ross-Simons Topco, LP (4)

Preferred Units

Investment Banking & Brokerage

Arcole Holding Corp.

Shares (4)(5)(6)(19)

Arcole Holding Corporation (4)(5)(6)(18)

IT Consulting & Other Services

Keras Holdings, LLC Shares(dba KSM Consulting LLC) (4)

CX Holdco LLC (d/b/a Cennox Inc.) (4)

Keras Holdings, LLC (d/b/a KSM Consulting, LLC) (4)

Leisure Facilities

Lift Brands, Inc.

(aka Snap Fitness Holdings, Inc.) Class A Common Stock (4)

Lift Brands, Inc.

(aka Snap Fitness Holdings, Inc.) Warrants (4)

Snap Fitness Holdings, Inc.

(d/b/a Lift Brands, Inc.) (4)

Class A Common Stock

Snap Fitness Holdings, Inc.

(d/b/a Lift Brands, Inc.) (4)

Other Diversified Financial Services

SFS Global Holding Company (4)

Sigue Corporation (4)

See notes to the consolidated financial statements

4 unchanged sentences

Investment Type (1)

Other Diversified Financial Services

RCS Creditor Trust Class B Units (4)(6)

SFS Global Holding Company Warrants (4)

Sigue Corporation Warrants (4)

Specialized Consumer Services

Camp Facility Services Parent, LLC (d/b/a Camp Construction Services, Inc.) (4)

Preferred Units

Specialized Finance

NMFC Senior Loan Program I LLC Units (4)(5)(6)

WHF STRS Ohio Senior Loan Fund LLC Interests (4)(5)(7)(14)

WHF STRS Ohio Senior Loan Fund (4)(5)(14)

LLC Interests

Total Equity Investments

1 unchanged sentence

Prime Rate as published by the Wall Street Journal (“Prime” or “P”).

The one, three and six-month LIBOR were 0.1%, 0.2% and 0.3%, respectively, as of December 31, 2020.

The Prime was 3.25% as of December 31, 2020.

The CDOR was 0.5% as of December 31, 2020.

(2) The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets monthly, quarterly or semiannually, the Secured Overnight Financing Rate (“SOFR” or “SF”), the Canadian Dollar Offered Rate (“CDOR” or “C”), Canada Prime Rate (“CP”), or the U.S.

Prime Rate (“Prime” or “P”).

The one, three and six-month USD LIBOR were 0.10%, 0.21% and 0.34%, respectively, as of December 31, 2021.

The SOFR, CDOR, Canadian Prime and Prime were 0.05%, 0.52%, 2.45% and 3.25%, respectively, as of December 31, 2021.

(3) The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

10 unchanged sentences

(12) The investment was comprised of two contracts, which were indexed to different base rates, L and P, respectively.

The Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

(13) Principal amount is denominated in Canadian dollars.

The Floor, Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

(13) Principal amount is non-USD denominated and is based in Canadian dollars.

(14) Investment is a controlled affiliate investment as defined by the 1940 Act.

On January 14, 2019, the Company entered into an agreement (as described in Note 4 hereto) with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law (“STRS Ohio”), to create WHF STRS Ohio Senior Loan Fund, LLC (“STRS JV”), a joint venture, which invests primarily in senior secured first and second lien term loans.

(15) In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.75% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche

See notes to the consolidated financial statements

3 unchanged sentences

(in thousands)

will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(16) In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(17) In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.00% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(18) In August 2020, in conjunction with the AG Kings Holdings, Inc.

bankruptcy, the Company converted approximately $14.2 million of its existing first lien secured term loan into a new superpriority secured debtor-in-possession term loan.

(15) In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 2.75% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(16) In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(17) In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest in the amount of 3.00% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(18) On October 1, 2020, as part of a restructuring agreement between the Company and Arcole Acquisition Corp, the Company’s investments in first lien secured term loans to Arcole Acquisition Corp were converted into common shares of Arcole Holding Corp.

1 unchanged sentence

The issuer may elect to pay up to 2.00% PIK.

(20) Investment earns 14.00% that converts to PIK on an annual basis and is recorded in interest and dividend receivable in the consolidated statements of assets and liabilities.

(21) A portion of the existing Grupo HIMA San Pablo, Inc.

First Lien Secured Term Loan A and First Lien Secured Term Loan B investments were converted into an Amended Term Loan, which is pari passu with the Grupo HIMA San Pablo, Inc.

Superpriority Delayed Draw Loan commitment in a liquidation event.

See notes to the consolidated financial statements

1 unchanged sentence

Notes to Consolidated Financial Statements (Unaudited)

September 30, 2021

March 31, 2022

(in thousands, except share and per share data)

4 unchanged sentences

WhiteHorse Finance’s common stock trades on the Nasdaq Global Select Market under the symbol “WHF.”

The Company’s investment objective is to generate attractive risk-adjusted returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest rate based on a risk-free index rate such as LIBOR and have a term of three to six years.

While the Company focuses principally on originating senior secured loans to lower middle market companies, it may also opportunistically make investments at other levels of a company’s capital structure, including mezzanine loans or equity interests and may receive warrants to purchase common stock in connection with its debt investments.

8 unchanged sentences

Basis of Presentation :

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of WhiteHorse Finance and its wholly owned subsidiaries, WhiteHorse Finance Credit I, LLC (“WhiteHorse Credit”), and its subsidiary WhiteHorse Finance (CA), LLC (“WhiteHorse California”), WhiteHorse Finance Warehouse, LLC (“WhiteHorse Warehouse”), WHF PMA Holdco Blocker, LLC, WhiteHorse RCKC Holdings, LLC and WhiteHorse Finance Holdings, LLC.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of WhiteHorse Finance and its wholly owned subsidiaries, WhiteHorse Finance Credit I, LLC (“WhiteHorse Credit”), and its subsidiary WhiteHorse Finance (CA), LLC (“WhiteHorse California”), WHF PMA Holdco Blocker, LLC, WhiteHorse RCKC Holdings, LLC and WhiteHorse Finance Holdings, LLC.

The Company meets the definition of an investment company under Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies , and therefore applies the accounting and reporting guidance discussed therein to its consolidated financial statements.

All significant intercompany balances and transactions have been eliminated.

Additionally, the accompanying consolidated financial statements and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X.

Accordingly, certain disclosures accompanying the annual financial statements prepared in accordance with GAAP are omitted.

In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods included herein.

This quarterly report on Form 10-Q should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2020.

The current period’s results of

operations will not necessarily be indicative of results that ultimately may be achieved for the year ending December 31, 2021.

In the opinion of management, the consolidated financial statements reflect all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial results as of and for the periods presented.

Principles of Consolidation :

3 unchanged sentences

See further description in Note 4.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Use of Estimates :

30 unchanged sentences

government securities.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Revenue Recognition :

22 unchanged sentences

Restricted cash is held by the trustee for the payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets.

Restricted cash that represents interest or fee income is transferred to unrestricted cash accounts by the trustee generally once a quarter after the payment of operating expenses and amounts due under the Credit Facility (as defined in Note 6).

Offering Costs :

8 unchanged sentences

In order to maintain its status as a RIC, among other requirements, the Company is required to distribute dividends for U.S.

federal income tax purposes to its stockholders each taxable year generally of an amount at least equal to 90% of the sum of ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution.

federal income tax purposes to its stockholders each taxable year generally of an amount at least equal to 90% of the sum of ordinary

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution.

In addition, the Company will incur a nondeductible excise tax equal to 4% of the amount by which (1) 98% of ordinary income for the calendar year (taking into account certain deferrals and elections), (2) 98.2% of capital gains in excess of capital losses, adjusted for certain ordinary losses, for the one-year period ending on October 31 of the calendar year and (3) any ordinary income and capital gain income for preceding years that were not distributed during such years and on which the Company incurred no U.S.

4 unchanged sentences

Any tax positions not deemed to satisfy the more likely than not threshold are reversed and recorded as tax benefit or tax expense, as appropriate, in the current year.

Management has analyzed the Company’s tax positions, and the Company has concluded that the Company did not have any unrecognized tax benefits or unrecognized tax liabilities related to uncertain tax positions as of September 30, 2021 and December 31, 2020.

Penalties or interest that may be assessed related to any income taxes would be classified as general and administrative expenses on the consolidated statements of operations.

The Company had no amounts accrued for interest or penalties as of September 30, 2021 or December 31, 2020.

The Company had no amounts accrued for interest or penalties as of March 31, 2022 or December 31, 2021.

The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next twelve months.

3 unchanged sentences

Tax returns for each of the federal tax years since 2018 remain subject to examination by the Internal Revenue Service.

As of September 30, 2021 and December 31, 2020, the cost of investments for federal income tax purposes was $697,591 and $701,493 resulting in net unrealized depreciation of $10,468 and $10,758, respectively.

This is comprised of gross unrealized appreciation of $10,965 and $16,954, and gross unrealized depreciation of $21,433 and $27,712, on a tax basis, as of September 30, 2021 and December 31, 2020, respectively.

As of March 31, 2022 and December 31, 2021, the cost of investments for federal income tax purposes was $800,053 and $835,502 resulting in net unrealized appreciation of $319 and gross unrealized depreciation of $16,293, respectively.

This is comprised of gross unrealized appreciation of $14,763 and $10,770, and gross unrealized depreciation of $14,444 and $27,062, on a tax basis, as of March 31, 2022 and December 31, 2021, respectively.

Dividends and Distributions :

13 unchanged sentences

Management believes that the carrying value of the Company’s investments are fairly stated, taking into consideration these risks along with estimated collateral values, payment histories and other market information.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Reclassifications :

4 unchanged sentences

The guidance is effective from March 12, 2020 through December 31, 2022.

As of September 30, 2021, the guidance did not have a material impact on the Company’s consolidated financial statements.

The Company is currently evaluating the impact of the adoption of ASU 2020-04 on its consolidated financial statements.

NOTE 3 - FORWARD CURRENCY CONTRACTS

7 unchanged sentences

The Company may choose to renew contracts quarterly unless otherwise settled by the Company or the counterparty.

The following table provides a breakdown of our forward currency contracts for the three and nine months ended September 30, 2021 and 2020:

The following table provides a breakdown of our forward currency contracts for the three months ended March 31, 2022 and 2021:

For the three months ended

For the nine months ended

September 30, 2021

Realized gain (loss) on forward currency contracts

Unrealized appreciation (deprectiation) on forward currency contracts

Total net realized and unrealized gains (losses) on forward currency contracts

For the three months ended

For the nine months ended

September 30, 2020

Realized (loss) on forward currency contracts

March 31, 2022

March 31, 2021

Realized gain (loss) on forward currency contracts

Unrealized appreciation (depreciation) on forward currency contracts

Total net realized and unrealized gains (losses) on forward currency contracts

The value associated with unrealized loss on open contracts is included in unrealized appreciation/depreciation on forward currency contracts within the statement of assets and liabilities.

Open contracts as of September 30, 2021 were as follows:

The value associated with unrealized loss on open contracts is included in unrealized appreciation or depreciation on forward currency contracts within the consolidated statements of assets and liabilities.

Open contracts as of March 31, 2022 were as follows:

Currency to be sold

2 unchanged sentences

Morgan Stanley

The following table is a summary of the average USD notional exposure to foreign currency forward contracts for the three months ended March 31, 2022 and 2021:

Three months ended March 31,

Average USD notional outstanding

Forward currency contracts

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

The foreign currency forward contracts open at the end of the period are generally indicative of the volume of activity during the period.

The value associated with unrealized gain or loss on open contracts is included in unrealized appreciation or depreciation on forward currency contracts within the consolidated statements of assets and liabilities.

Offsetting of Derivative Instruments

1 unchanged sentence

These agreements include provisions to offset positions with the same counterparty in the event of default by one of the parties.

The Company’s unrealized appreciation and depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the consolidated statements of assets and liabilities.

The following tables present the Company’s assets and liabilities related to derivatives by counterparty, net of amounts available for offset under a master netting arrangement and net of any collateral received or pledged by the Company for such assets and liabilities as of September 30, 2021.

As of September 30, 2021

The Company’s unrealized appreciation or depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the consolidated statements of assets and liabilities.

As of March 31, 2022

Counterparty ($ in thousands)

14 unchanged sentences

(3) Net amount of derivative liabilities represents the net amount due from the Company to the counterparty in the event of default.

As of December 31, 2021, the Company did not have any outstanding derivative instruments.

NOTE 4 - INVESTMENTS

Investments consisted of the following:

As of September 30, 2021

As of March 31, 2022

As of December 31, 2021

7 unchanged sentences

Equity in STRS JV

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

The following table shows the portfolio composition by industry grouping at fair value:

Industry ($ in thousands)

As of September 30, 2021

As of March 31, 2022

As of December 31, 2021

Agricultural & Farm Machinery

Air Freight & Logistics

Application Software

Asset Management & Custody Banks

Automotive Retail

2 unchanged sentences

Commodity Chemicals

Communications Equipment

Construction & Engineering

6 unchanged sentences

Education Services

Electric Utilities

Electronic Equipment & Instruments

Environmental & Facilities Services

Health Care Facilities

Health Care Services

Health Care Supplies

Heavy Electrical Equipment

1 unchanged sentence

Household Products

Industrial Machinery

Interactive Media & Services

4 unchanged sentences

Leisure Products

Life Sciences Tools & Services

Office Services & Supplies

2 unchanged sentences

Personal Products

Property & Casualty Insurance

Real Estate Operating Companies

Research & Consulting Services

4 unchanged sentences

(1) Excludes investments in STRS JV.

As of September 30, 2021, the portfolio companies underlying the investments are all located in the United States and its territories, except for Arcole Acquisition Corp and Trimlite Buyer, LLC, which are domiciled in Canada.

As of September 30, 2021 and December 31, 2020, the weighted average remaining term of the Company’s debt investments, excluding non-accrual investments, were approximately 3.7 years and 3.6 years, respectively.

As of September 30, 2021 and December 31, 2020, the total fair value of non-accrual loans were $8,683 and $11,620, respectively.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

As of March 31, 2022, the portfolio companies underlying the investments are all located in the United States and its territories, except for JZ Capital Partners Ltd., which is domiciled in Guernsey, and Arcole Acquisition Corp and Trimlite Buyer, LLC, which are domiciled in Canada.

As of March 31, 2022 and December 31, 2021, the weighted average remaining term of the Company’s debt investments, excluding non-accrual investments, were approximately 3.6 years and 3.8 years, respectively.

As of March 31, 2022 there were no loans on non-accrual status.

As of December 31, 2021, the total fair value of non-accrual loans was $10,046.

An affiliated company is generally a portfolio company in which the Company owns 5% or more of its voting securities.

A controlled affiliated company is generally a portfolio company in which the Company owns more than 25% of its voting securities or has the power to exercise control over its management or policies (including through a management agreement).

The following table presents the schedule of investments in and advances to affiliated and controlled persons (as defined by the 1940 Act) as of and for the nine months ended September 30, 2021:

The following table presents the schedule of investments in and advances to affiliated and controlled persons (as defined by the 1940 Act) as of and for the three months ended March 31, 2022:

Dividends and

1 unchanged sentence

Fair Value at

September 30,

Affiliated Person (1)

1 unchanged sentence

Non-controlled affiliates

Arcole Holding Corp Shares

NMFC Senior Loan Program I LLC Units

Arcole Holding Corporation

PlayMonster LLC

First Lien Secured Revolving Loan

Playmonster Group LLC

First Lien Secured Loan

Playmonster Group Equity, Inc.

(d/b/a PlayMonster LLC)

Preferred Equity

Playmonster Group Equity, Inc.

(d/b/a PlayMonster LLC)

Common Equity

Total Non-controlled affiliates

dividends and

Net Change in

Fair Value at

September 30,

Affiliated Person (1)

(Depreciation)

Controlled affiliates

3 unchanged sentences

Total Controlled affiliates

The following table presents the schedule of investments in and advances to affiliated and controlled affiliated persons (as defined by the 1940 Act) as of and for the year ended December 31, 2020:

The Company and STRS Ohio are the members of STRS JV, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes.

The members make investments in STRS JV in the form of limited liability company (“LLC”) equity interests and interest-bearing subordinated notes as STRS JV makes investments, and all portfolio and other material decisions regarding STRS JV must be submitted to STRS JV’s board of managers which is comprised of an equal number of members appointed by each of the Company and STRS Ohio.

Because management of STRS JV is shared equally between the Company and STRS Ohio, the Company does not believe it controls STRS JV for purposes of the 1940 Act or otherwise.

(1) Refer to the consolidated schedule of investments for the principal amount, industry classification and other security detail of each portfolio company.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

On January 24, 2022, as part of a restructuring agreement between the Company and PlayMonster LLC, the Company’s first lien secured term loan and delayed draw loan investments to PlayMonster LLC, with a total cost basis of $7,045, converted into a new first lien secured term loan, preferred stock and common stock of Playmonster Group LLC.

The following table presents the schedule of investments in and advances to affiliated and controlled persons (as defined by the 1940 Act) as of and for the year ended December 31, 2021.

Dividends and

4 unchanged sentences

Non-controlled affiliates

Arcole Holding Corp Shares

Arcole Holding Corporation

NMFC Senior Loan Program I LLC Units

Total Non-controlled affiliates

dividends and

Net Change in

Fair Value at

Affiliated Person (1)

(Depreciation)

Controlled affiliates

4 unchanged sentences

The Company and STRS Ohio are the members of STRS JV, a joint venture formed as a Delaware limited liability company that is not consolidated by either member for financial reporting purposes.

The members make investments in STRS JV in the form of LLC equity interests and interest-bearing subordinated notes as STRS JV makes investments, and all portfolio and other material decisions regarding STRS JV must be submitted to STRS JV’s board of managers which is comprised of an equal number of members appointed by each of the Company and STRS Ohio.

Because management of STRS JV is shared equally between the Company and STRS Ohio, the Company does not believe it controls STRS JV for purposes of the 1940 Act or otherwise.

(1) Refer to the consolidated schedule of investments for the principal amount, industry classification and other security detail of each portfolio company.WHF STRS Ohio Senior Loan Fund LLC

(1) Refer to the consolidated schedule of investments for the principal amount, industry classification and other security detail of each portfolio company.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

WHF STRS Ohio Senior Loan Fund LLC

On January 14, 2019, the Company entered into a limited liability company operating agreement with STRS Ohio to co-manage a newly formed joint venture investment company, STRS JV, a Delaware limited liability company.

STRS Ohio and the Company have committed to provide up to $125,000 of subordinated notes and equity to STRS JV, with STRS Ohio providing up to $50,000 and the Company providing up to $75,000, respectively.

STRS JV will invest primarily in lower middle market, senior secured debt facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest rate based on a risk-free index rate such as LIBOR and have a term of three to six years.

STRS Ohio and the Company committed to provide up to $125,000 of subordinated notes and equity to STRS JV, with STRS Ohio providing up to $50,000 and the Company providing up to $75,000, respectively.

In July 2019, STRS JV formally launched operations.

As of September 30, 2021 and December 31, 2020, STRS JV had total assets of $246,765 and $181,382, respectively.

STRS JV’s portfolio consisted of debt investments in 27 and 20 portfolio companies as of September 30, 2021 and December 31, 2020, respectively.

As of September 30, 2021 and December 31, 2020, the largest investment by aggregate principal amount (including any unfunded commitments) in a single portfolio company in STRS JV’s portfolio was $19,003 and $14,593, respectively.

The five largest investments in portfolio companies by fair value in STRS JV totaled $72,488 and $60,252 as of September 30, 2021 and December 31, 2020, respectively.

STRS JV invests primarily in lower middle market, senior secured debt facilities, to performing lower middle market companies across a broad range of industries that typically carry a floating interest rate based on a risk-free index rate such as LIBOR and have a term of three to six years.

In February 2022, the Company increased its capital commitment to the STRS JV in the amount of an additional $25,000, which brings the Company’s total capital commitment to $100,000, comprised of $80,000 of subordinated notes and $20,000 of LLC equity interests.

In connection with this increase in the Company’s capital commitment, the Company and STRS Ohio’s amended economic ownership in the STRS JV is approximately 66.67% and 33.33%, respectively.

As of March 31, 2022 and December 31, 2021, STRS JV had total assets of $332,239 and $273,523, respectively.

STRS JV’s portfolio consisted of debt investments in 33 and 28 portfolio companies as of March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022 and December 31, 2021, the largest investment by aggregate principal amount (including any unfunded commitments) in a single portfolio company in STRS JV’s portfolio was $20,086 and $23,483, respectively.

The five largest investments in portfolio companies by fair value in STRS JV totaled $79,609 and $83,057 as of March 31, 2022 and December 31, 2021, respectively.

STRS JV invests in portfolio companies in the same industries in which the Company may directly invest.

The Company provides capital to STRS JV in the form of LLC equity interests and through interest-bearing subordinated notes.

As of September 30, 2021 and December 31, 2020, the Company and STRS Ohio owned 60% and 40%, respectively, of the LLC equity interests of STRS JV.

The Company’s investment in STRS JV consisted of equity contributions of $14,324 and $10,268 and advances of the subordinated notes of $57,297 and $41,073 as of September 30, 2021 and December 31, 2020, respectively.

As of September 30, 2021, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $15,000 and $60,000, of which $676 and $2,703 were unfunded, respectively.

As of December 31, 2020, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $15,000 and $60,000, of which $4,732 and $18,927 were unfunded, respectively.

As of March 31, 2022, the Company and STRS Ohio owned 66.67% and 33.33%, respectively, of the LLC equity interests of STRS JV.

As of December 31, 2021, the Company and STRS Ohio owned 60% and 40%, respectively, of the LLC equity interests of STRS JV.

The Company’s investment in STRS JV consisted of equity contributions of $20,000 and $15,000 and advances of the subordinated notes of $80,000 and $60,000 as of March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $20,000 and $80,000, respectively, both of which were fully funded.

As of December 31, 2021, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $15,000 and $60,000, respectively, both of which were fully funded.

The Company and STRS Ohio each appoint two members to STRS JV’s four-person board of managers.

10 unchanged sentences

On July 15, 2021, the terms of the STRS JV Credit Facility were amended to, among other things, allow STRS JV to reduce the applicable margins for interest rates to 2.35%, extend the non-call period from January 19, 2022 to January 19, 2023, extend the end of the reinvestment period from July 19, 2022 to July 19, 2023 and extend the scheduled termination date from July 19, 2024, to July 19, 2025.

As of September 30, 2021, the STRS JV Credit Facility had $175,000 of commitments subject to leverage and borrowing base restrictions with an interest rate based on a risk-free index rate such as LIBOR, Sterling Overnight Index Average (“SONIA”) or CDOR plus 2.35%.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

On March 11, 2022, the terms of the STRS JV Credit Facility were further amended to, among other things, (i) permanently increase STRS Credit’s availability under the Credit Facility from $175,000 to $225,000, (ii) increase the minimum funding amount from $131,250 to $168,750, and (iii) apply an annual interest rate equal to the applicable SOFR plus 2.50% to USD borrowings greater than $175,000 in the Credit Facility.

As of March 31, 2022, the STRS JV Credit Facility had $225,000 of commitments subject to leverage and borrowing base restrictions with an interest rate based on a risk-free index rate such as LIBOR, Sterling Overnight Index Average (“SONIA”) or CDOR plus 2.35% for borrowings up to $175,000 and SOFR plus 2.50% for USD borrowings above $175,000.

The final maturity date of the STRS JV Credit Facility is July 19, 2025.

As of September 30, 2021, STRS JV had $126,189 of outstanding borrowings and an effective interest rate of 2.51% per annum under the STRS JV Credit Facility.

Below is a listing of STRS JV’s individual investments as of September 30, 2021:

As of March 31, 2022, STRS JV had $180,065 of outstanding borrowings and an effective interest rate of 2.9% per annum under the STRS JV Credit Facility.

As of December 31, 2021, the STRS JV Credit Facility had $175,000 of commitments subject to leverage and borrowing base restrictions with an interest rate based on a risk-free index rate such as LIBOR, SONIA or CDOR plus 2.35%.

As of December 31, 2021, STRS JV had $146,782 of outstanding borrowings and an effective interest rate of 2.5% per annum under the STRS JV Credit Facility.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Below is a listing of STRS JV’s individual investments as of March 31, 2022:

Investment Type (1)

1 unchanged sentence

Debt Investments

SmartSign Holdings LLC

I&I Sales Group, LLC (d/b/a Avision Sales Group)

First Lien Secured Term Loan

SmartSign Holdings LLC

I&I Sales Group, LLC (d/b/a Avision Sales Group) (6)

First Lien Secured Delayed Draw Loan

I&I Sales Group, LLC (d/b/a Avision Sales Group)

First Lien Secured Revolving Loan

Air Freight & Logistics

ITS Buyer Inc.

First Lien Secured Term Loan

ITS Buyer Inc.

First Lien Secured Revolving Loan

Application Software

TaxSlayer, LLC

MEP-TS Midco, LLC (d/b/a Tax Slayer)

First Lien Secured Term Loan

TaxSlayer, LLC

MEP-TS Midco, LLC (d/b/a Tax Slayer)

First Lien Secured Revolving Loan

2 unchanged sentences

First Lien Secured Term Loan

LHS Borrower, LLC

First Lien Secured Term Loan

LHS Borrower, LLC

First Lien Secured Revolving Loan

Construction & Engineering

1 unchanged sentence

First Lien Secured Term Loan

Road Safety Services, Inc

First Lien Secured Revolving Loan

Tensar Corporation

First Lien Secured Term Loan

10 unchanged sentences

First Lien Secured Revolving Loan

7.01% (6.51% Cash + 0.50% PIK)

Electronic Equipment & Instruments

4 unchanged sentences

Environmental & Facilities Services

Juniper Landscaping Holdings LLC

First Lien Secured Term Loan

Juniper Landscaping Holdings LLC (6)

First Lien Secured Delayed Draw Loan

Juniper Landscaping Holdings LLC

First Lien Secured Revolving Loan

WH Lessor Corp.

(d/b/a Waste Harmonics, LLC)

First Lien Secured Term Loan

WH Lessor Corp.

(d/b/a Waste Harmonics, LLC)

First Lien Secured Revolving Loan

Human Resource & Employment Services

Pluto Acquisition Topco, LLC (8)

First Lien Secured Term Loan

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Investment Type (1)

Industrial Machinery

1 unchanged sentence

First Lien Secured Term Loan B

BLP Buyer, Inc.

(d/b/a Bishop Lifting Products, Inc.)

First Lien Secured Term Loan

BLP Buyer, Inc.

(d/b/a Bishop Lifting Products, Inc.)

First Lien Secured Revolving Loan

Pennsylvania Machine Works, LLC (d/b/a Penn Western)

First Lien Secured Term Loan

Internet & Direct Marketing Retail

Marlin DTC-LS Midco 2, LLC

Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)

First Lien Secured Term Loan

Marlin DTC-LS Midco 2, LLC

Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)

First Lien Secured Revolving Loan

4 unchanged sentences

First Lien Secured Delayed Draw Loan

Investment Type (1)

IT Consulting & Other Services

First Lien Secured Term Loan

First Lien Secured Delayed Draw Loan

First Lien Secured Revolving Loan

Cennox Holdings Limited (7)

Cennox Holdings Limited (d/b/a Cennox) (8)

First lien Secured Term Loan

Cennox Holdings Limited (7)

Cennox Holdings Limited (d/b/a Cennox) (8)

First lien Secured Revolving Loan

KSM Consulting LLC

RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)

First Lien Secured Term Loan

KSM Consulting LLC (6)

RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC) (6)

First Lien Secured Delayed Draw Loan

KSM Consulting LLC (6)

RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC) (6)

First Lien Secured Revolving Loan

3 unchanged sentences

First Lien Secured Revolving Loan

Leisure Products

Unleashed Brands, LLC (d/b/a Unleashed Brands Group)

First Lien Secured Term Loan

Unleashed Brands, LLC (d/b/a Unleashed Brands Group) (6)

First Lien Secured Delayed Draw Loan

Unleashed Brands, LLC (d/b/a Unleashed Brands Group)

First Lien Secured Revolving Loan

Packaged Foods & Meats

Mikawaya Holdings, LLC

Mikawaya Holdings, LLC (aka MyMo)

First Lien Secured Term Loan

Poultry Holdings, LLC

Poultry Holdings LLC (HPP)

First Lien Secured Term Loan

8.25% (6.75% Cash + 1.50% PIK)

Stella & Chewy's

Stella & Chewy's LLC

First Lien Secured Term Loan

Stella & Chewy's (6)

Stella & Chewy's LLC (6)

First Lien Secured Delayed Draw Loan

3 unchanged sentences

Personal Products

Sunless, Inc.

First Lien Secured Term Loan

1 unchanged sentence

First Lien Secured Revolving Loan

Pharmaceuticals

Meta Buyer LLC (d/b/a Metagenics, Inc.) (9)

First Lien Secured Term Loan

Meta Buyer LLC (d/b/a Metagenics, Inc.)

First Lien Secured Term Loan

Meta Buyer LLC (d/b/a Metagenics, Inc.)

First Lien Secured Delayed Draw Loan

Meta Buyer LLC (d/b/a Metagenics, Inc.)

First Lien Secured Revolving Loan

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Investment Type (1)

Real Estate Operating Companies

HRG Management, LLC (d/b/a HomeRiver Group, LLC)

First Lien Secured Term Loan

HRG Management, LLC (d/b/a HomeRiver Group, LLC)

First Lien Secured Delayed Draw Loan

HRG Management, LLC (d/b/a HomeRiver Group, LLC)

First Lien Secured Revolving Loan

Real Estate Services

NPAV Lessor Corp.

(d/b/a Nationwide Property & Appraisal Services, LLC)

First Lien Secured Term Loan

NPAV Lessor Corp.

(d/b/a Nationwide Property & Appraisal Services, LLC)

First Lien Secured Revolving Loan

Research & Consulting Services

E-Phoenix Acquisition Co.

Inc (dba Integreon)

(d/b/a Integreon, Inc.)

First Lien Secured Term Loan

Systems Software

IDIG Parent LLC

IDIG Parent, LLC (d/b/a IDIQ)

First Lien Secured Term Loan

IDIG Parent LLC

IDIG Parent, LLC (d/b/a IDIQ)

First Lien Secured Delayed Draw Loan

IDIG Parent LLC

IDIG Parent, LLC (d/b/a IDIQ)

First Lien Secured Revolving Loan

2 unchanged sentences

First Lien Secured Term Loan

PS Lightwave, Inc (6)

First Lien Secured Delayed Draw Loan

Source Code Midco, LLC

Source Code Holdings, LLC (d/b/a Source Code Corporation)

First Lien Secured Term Loan

Source Code Midco, LLC (6)

Source Code Holdings, LLC (d/b/a Source Code Corporation) (6)

First Lien Secured Delayed Draw Loan

5 unchanged sentences

Total Investments

Forward Currency Contracts

Currency to be sold

Currency to be purchased

Settlement date

Morgan Stanley

(1) Except as noted, all investments provide collateral for the STRS JV Credit Facility.

(2) The investments bear interest at a rate that may be determined by reference to LIBOR, which resets monthly, quarterly or semiannually, CDOR or Prime.

The one, three and six-month LIBOR were 0.08%, 0.13% and 0.16%, respectively, as of September 30, 2021.

The one, three and six-month GBP LIBOR were 0.05%, 0.08% and 0.17%, respectively, as of September 30, 2021.

The CDOR and Prime were 0.45% and 3.25%, respectively, as of September 30, 2021.

(2) The investments bear interest at a rate that may be determined by reference to LIBOR, which resets monthly, quarterly or semiannually, SOFR, CDOR, Canada Prime or Prime.

The one, three and six-month LIBOR were 0.45%, 0.96% and 1.47%, respectively, as of March 31, 2022.

The three month Euro Interbank Offered Rate (“EurIBOR” or “E”) and six-month GBP LIBOR were (0.46)% and 1.47%, respectively, as of March 31, 2022.

The SOFR, CDOR, Canada Prime and Prime were 0.29%, 1.26%, 2.70% and 3.50%, respectively, as of March 31, 2022.

(3) The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the PIK interest rate, as the case may be.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

(4) Except as otherwise noted, all of the STRS JV’s portfolio company investments, which as of the date of the portfolio represented 1,004% of STRS JV’s net assets or 94% of STRS JV’s total assets, are subject to legal restrictions on sales.

1 unchanged sentence

(6) The investment or a portion of the investment does not provide collateral for the STRS JV Credit Facility.

(7) Principal amount is non-USD denominated and is based in Canadian dollars or British Pounds.

(8) In addition to the interest earned based on the stated interest rate of this security, STRS JV is entitled to receive an additional interest in the amount of 3.00% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(7) Principal amount is denominated in Canadian dollars and the issuer is domiciled in Canada.

(8) Principal amount is denominated in British Pounds and the issuer is domiciled in the United Kingdom.

(9) Principal amount is denominated in Euros.

(10) At the option of the issuer, interest can be paid in cash or cash and PIK.

The issuer may elect to pay up to 7.00% PIK.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Below is a listing of STRS JV’s individual investments as of December 31, 2021:

2 unchanged sentences

Debt Investments

SmartSign Holdings LLC

Application Software

MEP-TS Midco, LLC (d/b/a Tax Slayer)

First Lien Secured Term Loan

(1.00% Floor)

MEP-TS Midco, LLC (d/b/a Tax Slayer)

First Lien Secured Revolving Loan

(1.00% Floor)

Building Products

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Revolving Loan

(1.00% Floor)

LHS Borrower, LLC

LHS Borrower, LLC (d/b/a Leaf Home, LLC)

First Lien Secured Term Loan

(1.00% Floor)

LHS Borrower, LLC (d/b/a Leaf Home, LLC)

First Lien Secured Revolving Loan

(1.00% Floor)

Construction & Engineering

SFP Holding, Inc.

Road Safety Services, Inc.

First Lien Secured Term Loan

(1.00% Floor)

First Lien Secured Delayed Draw Loan

(1.00% Floor)

Road Safety Services, Inc.

First Lien Secured Revolving Loan

(1.00% Floor)

Tensar Corporation

First Lien Secured Term Loan

(1.00% Floor)

Data Processing & Outsourced Services

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

Geo Logic Systems Ltd.

First Lien Secured Revolving Loan

(1.00% Floor)

Diversified Support Services

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

Quest Events, LLC (10)

First Lien Secured Revolving Loan

(1.00% Floor)

Electronic Equipment & Instruments

LMG Holdings, Inc.

First Lien Secured Term Loan

LMG Holdings, Inc.

First Lien Secured Revolving Loan

Environmental & Facilities Services

WH Lessor Corp.

(d/b/a Waste Harmonics, LLC)

First Lien Secured Term Loan

(1.00% Floor)

WH Lessor Corp.

(d/b/a Waste Harmonics, LLC)

First Lien Secured Revolving Loan

(1.00% Floor)

Human Resource & Employment Services

Pluto Acquisition Topco, LLC

First Lien Secured Term Loan (8)

(1.50% Floor)

Investment Type (1)

Industrial Machinery

1 unchanged sentence

First Lien Secured Term Loan B

(1.00% Floor)

First Lien Secured Term Loan C

(1.00% Floor)

Insurance Brokers

SelectQuote, Inc.

First Lien Secured Term Loan

(1.00% Floor)

Internet & Direct Marketing Retail

Marlin DTC-LS Midco 2, LLC

Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)

First Lien Secured Term Loan

(1.00% Floor)

Marlin DTC-LS Midco 2, LLC (d/b/a Clarus Commerce, LLC)

First Lien Secured Revolving Loan

(1.00% Floor)

Investment Banking & Brokerage

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

TOUR Intermediate Holdings, LLC

First Lien Secured Delayed Draw Loan

(1.00% Floor)

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Investment Type (1)

IT Consulting & Other Services

(d/b/a Cennox)

First Lien Secured Term Loan

(d/b/a Cennox)

First Lien Secured Delayed Draw Loan

(d/b/a Cennox)

First Lien Secured Revolving Loan

Cennox Holdings Limited (d/b/a Cennox) (8)

First lien Secured Term Loan

Cennox Holdings Limited (d/b/a Cennox) (8)

First lien Secured Revolving Loan

RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC)

First Lien Secured Term Loan

RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC) (6)

First Lien Secured Delayed Draw Loan

RCKC Acquisitions LLC (d/b/a KSM Consulting, LLC) (6)

First Lien Secured Revolving Loan

Turnberry Solutions, Inc.

First Lien Secured Term Loan

Turnberry Solutions, Inc.

First Lien Secured Revolving Loan

Leisure Products

Unleashed Brands, LLC (d/b/a Unleashed Brands Group)

First Lien Secured Term Loan

Unleashed Brands, LLC (d/b/a Unleashed Brands Group) (6)

First Lien Secured Delayed Draw Loan

Unleashed Brands, LLC (d/b/a Unleashed Brands Group)

First Lien Secured Revolving Loan

Packaged Foods & Meats

Mikawaya Holdings, LLC

Mikawaya Holdings, LLC (aka MyMo)

First Lien Secured Term Loan

(1.25% Floor)

Poultry Holdings, LLC

Poultry Holdings LLC (HPP)

First Lien Secured Term Loan

(1.00% Floor)

Stella & Chewy's

8.25% (6.75% Cash + 1.50% PIK)

Stella & Chewy's LLC

First Lien Secured Term Loan

(1.00% Floor)

Stella & Chewy's LLC (6)

First Lien Secured Delayed Draw Loan

(1.00% Floor)

Westrock Coffee Company, LLC

First Lien Secured Term Loan

(1.50% Floor)

10.00% (9.75% Cash + 0.25% PIK)

Personal Products

1 unchanged sentence

First Lien Secured Term Loan

(1.00% Floor)

Sunless, Inc.

First Lien Secured Revolving Loan

(1.00% Floor)

Pharmaceuticals

Meta Buyer LLC (d/b/a Metagenics, Inc.) (9)

First Lien Secured Term Loan

Meta Buyer LLC (d/b/a Metagenics, Inc.)

First Lien Secured Term Loan

Meta Buyer LLC (d/b/a Metagenics, Inc.)

First Lien Secured Delayed Draw Loan

Meta Buyer LLC (d/b/a Metagenics, Inc.)

First Lien Secured Revolving Loan

Real Estate Operating Companies

HRG Management, LLC (d/b/a HomeRiver Group, LLC)

First Lien Secured Term Loan

Research & Consulting Services

E-Phoenix Acquisition Co.

(d/b/a Integreon, Inc.)

First Lien Secured Term Loan

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Investment Type (1)

Systems Software

arcserve (USA) LLC

IDIG Parent, LLC (d/b/a IDIQ)

First Lien Secured Term Loan

(1.00% Floor)

IDIG Parent, LLC (d/b/a IDIQ)

First Lien Secured Delayed Draw Loan

IDIG Parent, LLC (d/b/a IDIQ)

First Lien Secured Revolving Loan

Technology Hardware, Storage & Peripherals

1 unchanged sentence

First Lien Secured Term Loan

(1.50% Floor)

PS Lightwave, Inc.

First Lien Secured Delayed Draw Loan

(1.50% Floor)

Source Code Holdings, LLC (d/b/a Source Code Corporation)

First Lien Secured Term Loan

Source Code Holdings, LLC (d/b/a Source Code Corporation) (6)

First Lien Secured Delayed Draw Loan

Trading Companies & Distributors

LINC Systems, LLC

First Lien Secured Term Loan

LINC Systems, LLC

First Lien Secured Revolving Loan

Total Investments

(1) Except as noted, all investments provide collateral for the STRS JV Credit Facility.

(2) The investments bear interest at a rate that may be determined by reference to LIBOR, which resets monthly, quarterly or semiannually, or CDOR.

Forward Currency Contracts

Currency to be sold

Currency to be purchased

Settlement date

Morgan Stanley

(1) Except as noted, all investments provide collateral for the Company’s Credit Facility.

(2) The investments bear interest at a rate that may be determined by reference to LIBOR, which resets monthly, quarterly or semiannually, CDOR, or Prime.

The one, three and six-month LIBOR were 0.10%, 0.21% and 0.34%, respectively, as of December 31, 2021.

The CDOR was 0.5% as of December 31, 2020.

(3) The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the PIK interest rate, as the case may be.

(4) Except as otherwise noted, all of the STRS JV’s portfolio company investments, which as of the date of the portfolio represented 1,030% of STRS JV’s net assets or 96% of STRS JV’s total assets, are subject to legal restrictions on sales.

The one, three and six-month GBP LIBOR were 0.19%, 0.26% and 0.47%, respectively, as of December 31, 2021.

The three month Euro EurIBOR, CDOR and Prime were (0.57)%, 0.52% and 3.25%, respectively, as of December 31, 2021.

(3) The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

(4) Except as otherwise noted, all of the Company’s portfolio company investments, which as of the date of the portfolio represented 998% of the Company’s net assets or 95% of the Company’s total assets, are subject to legal restrictions on sales.

(5) The fair value of each investment was determined using significant unobservable inputs.

(6) The investment or a portion of the investment does not provide collateral for the STRS JV Credit Facility.

(7) Principal is denominated in Canadian dollars.

As of September 30, 2021, the portfolio companies underlying the STRS JV investments are all located in the United States and its territories except for Geo Logic Systems Ltd., which is domiciled in Canada, and Cennox Holdings Limited, which is domiciled in the United Kingdom.

As of September 30, 2021 and December 31, 2020, STRS JV had no investments on non-accrual status.

STRS JV had outstanding commitments to fund investments totaling $18,740, and $12,192 under delayed draw term loan commitments and undrawn revolvers as of September 30, 2021 and December 31, 2020, respectively.

Below is certain summarized financial information for STRS JV as of September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands):

Selected Balance Sheet Information

September 30, 2021

December 31, 2020

(6) The investment or a portion of the investment does not provide collateral for the Company’s Credit Facility.

(7) Principal amount is denominated in Canadian dollars and the issuer is domiciled in Canada.

(8) Principal amount is denominated in British Pounds and the issuer is domiciled in the United Kingdom.

(9) Principal amount is denominated in Euros.

(10) At the option of the issuer, interest can be paid in cash or cash and PIK.

The issuer may elect to pay up to 7.00% PIK.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

As of March 31, 2022 and December 31, 2021, the portfolio companies underlying the STRS JV investments are all located in the United States and its territories except for Geo Logic Systems Ltd., which is domiciled in Canada, and Cennox Holdings Limited, which is domiciled in the United Kingdom.

As of March 31, 2022 and December 31, 2021, STRS JV had no investments on non-accrual status.

STRS JV had outstanding commitments to fund investments totaling $33,085, and $22,883 under delayed draw term loan commitments and undrawn revolvers as of March 31, 2022 and December 31, 2021, respectively.

Below is certain summarized financial information for STRS JV as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and 2021;

Selected Balance Sheet Information ($ in thousands)

As of March 31, 2022

As of December 31, 2021

Investments, at fair value (amortized cost of $314,101 and $260,472, respectively)

Cash and cash equivalents

Interest receivable

Unrealized appreciation on foreign currency forward contracts

Credit facility

7 unchanged sentences

Three Months Ended

Nine Months Ended

Selected Statement of Operations Information

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Selected Statement of Operations Information ($ in thousands)

March 31, 2022

March 31, 2021

Interest income

6 unchanged sentences

Net investment income

Net realized gains (losses) on investments

Net change in unrealized appreciation (depreciation) on investments

Net increase (decrease) in net assets resulting from operations

Net realized gains (losses) on investments and foreign currency transactions

Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions

Net increase in net assets resulting from operations

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

NOTE 5 – FAIR VALUE MEASUREMENTS

12 unchanged sentences

Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of the Level 3 category as of the beginning of the quarter in which the reclassifications occur.

During the nine months ended September 30, 2021 and year ended December 31, 2020, there were no changes in the observability of valuation inputs that would have resulted in a reclassification of assets between any levels.

During the three months ended March 31, 2022 and year ended December 31, 2021, there were no changes in the observability of valuation inputs that would have resulted in a reclassification of assets between any levels.

Fair value for each investment is derived using a combination of valuation methodologies that, in the judgment of the Investment Committee are most relevant to such investment, including, without limitation, being based on one or more of the following:

(i) market prices obtained from market makers for which the Investment Committee has deemed there to be enough breadth (number of quotes) and depth (firm bids) to be indicative of fair value, (ii) the price paid or realized in a completed transaction or binding offer received in an arm’s-length transaction, (iii) a discounted cash flow analysis, (iv) the guideline public company method, (v) the similar transaction method or (vi) the option pricing method.

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of September 30, 2021:

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of March 31, 2022:

First lien secured loans

7 unchanged sentences

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of assets and liabilities.

The Company’s investments in forward currency contracts, which were valued at $186 as of September 30, 2021, are characterized in Level 2 of the hierarchy.

The Company’s investments in forward currency contracts, which were valued at ($4) as of March 31, 2022, are characterized in Level 2 of the hierarchy.

The following table presents investments (as shown on the consolidated schedule of investments) that were measured at fair value as of December 31, 2021:

2 unchanged sentences

Subordinated Note to STRS JV

Equity (excluding STRS JV)

3 unchanged sentences

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of assets and liabilities.

The following table presents the changes in investments measured at fair value using Level 3 inputs for the three months ended September 30, 2021:

The following table presents the changes in investments measured at fair value using Level 3 inputs for the three months ended March 31, 2022:

Notes to STRS

7 unchanged sentences

Fair value, end of period

Change in unrealized appreciation (depreciation) on investments still held as of September 30, 2021

The following table presents the changes in investments measured at fair value using Level 3 inputs for the nine months ended September 30, 2021:

Notes to STRS

Fair value, beginning of period

Funding of investments

Non-cash interest income

Accretion of discount (premium)

Proceeds from paydowns and sales

Realized gains (losses)

Net unrealized (depreciation) appreciation

Fair value, end of period

Change in unrealized appreciation (depreciation) on investments still held as of September 30, 2021

The following table presents the changes in investments measured at fair value using Level 3 inputs for the the three months ended September 30, 2020:

Notes to STRS

Fair value, beginning of period

Funding of investments

Non-cash interest income

Accretion of discount

Proceeds from paydowns and sales

Realized gains

Net unrealized (depreciation) appreciation

Fair value, end of period

Change in unrealized appreciation (depreciation) on investments still held as of September 30, 2020

The following table presents the changes in investments measured at fair value using Level 3 inputs for the the nine months ended September 30, 2020:

Change in unrealized appreciation (depreciation) on investments still held as of March 31, 2022

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

The following table presents the changes in investments measured at fair value using Level 3 inputs for the three months ended March 31, 2021:

Notes to STRS

7 unchanged sentences

Fair value, end of period

Change in unrealized appreciation (depreciation) on investments still held as of September 30, 2020

Change in unrealized appreciation (depreciation) on investments still held as of March 31, 2021

The significant unobservable inputs used in the fair value measurement of the Company’s investments are the discount rate, market quotes and exit multiples.

3 unchanged sentences

As the fair value of a debt investment diverges from par, which would generally be the case for non-accrual loans, the fair value measurement of that investment is more susceptible to volatility from changes in exit multiples as a significant unobservable input.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Quantitative information about Level 3 fair value measurements is as follows:

1 unchanged sentence

Investment Type

September 30, 2021

March 31, 2022

(Weighted Average)

8 unchanged sentences

97.1 – 99.0 (97.9)

Discounted cash flows, Recent transaction, Guideline public companies and Consensus market pricing

Discounted cash flows and Recent transaction

Discount rate

8.5% – 11.9% (9.6%)

Market pricing

Transaction price

2 unchanged sentences

5.5x – 11.0x (8.4x)

Expected repayment

Second lien secured loans

3 unchanged sentences

Exit EBITDA multiple

6.5x – 8.5x (8.0x)

Discounted cash flows and Recent transaction

Transaction price

Discount rate

Exit EBITDA multiple

Transaction price

Subordinated Notes

Enterprise value

Recent transaction

Discounted cash flows and Recent transaction

Transaction price

Exit EBITDA multiple

Preferred Equity

1 unchanged sentence

LTM EBITDA multiple

7.9x – 10.3x (9.8x)

Discount for lack of marketability

Discounted cash flows and Guideline public companies

4 unchanged sentences

Discount for lack of marketability

Recent transaction

Transaction price

$1.00 per share

Discounted cash flows

Discount rate

Exit EBITDA multiple

Common Equity

1 unchanged sentence

Discount rate

14.6% – 26.0% (19.6%)

Exit EBITDA Multiple

7.5x – 11.0x (9.5x)

Discount for lack of marketability

Discounted cash flows, Guideline public companies and Expected repayment

10.0% – 15.0% (10.2%)

Discounted cash flows, Guideline public companies and Similar Transactions

Discount rate

2 unchanged sentences

8.0x – 11.0x (10.7x)

LTM EBITDA Multiple

NFY EBITDA Multiple

Discount for lack of marketability

10.0% – 12.5% (10.5%)

Transaction price

$1.00 per share

Similar transactions

1 unchanged sentence

6.0x – 13.1x (9.0x)

Discount for lack of marketability

10.0% – 15.0% (13.8%)

Recent transaction

1 unchanged sentence

$1.00 - $801.8 ($184.8 per share)

Discounted cash flows, Recent transaction and Option-pricing method

Discounted cash flows and Option-pricing method

Discount rate

4 unchanged sentences

Discount for lack of marketability

10.0% – 15.0% (11.1%)

Total Level 3 Investments

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Fair Value as of

8 unchanged sentences

5.5x – 15.0x (8.3x)

Guideline public companies

LTM EBITDA multiple

Recent transaction

1 unchanged sentence

94.5 – 99.1 (97.9)

Discounted cash flows, recent transaction, guideline public companies and consensus market pricing

Discounted cash flows and Recent transaction

Discount rate

7.2% – 10.3% (8.6%)

Market pricing

100.2 – 100.6 (100.4)

Transaction price

97.5 – 98.8 (98.4)

Exit EBITDA multiple

7.0x – 11.0x (9.5x)

Other (asset coverage and expected repayment)

Guideline public companies

LTM EBITDA multiple

Expected repayment

Second lien secured loans

3 unchanged sentences

Exit EBITDA multiple

Other (expected repayment)

Subordinated Note to STRS JV

6.5x – 8.5x (8.0x)

Recent transaction

Transaction price

Subordinated Notes

Enterprise value

Recent transaction

Transaction price

Preferred Equity

1 unchanged sentence

LTM EBITDA multiple

Discount for lack of marketability

Discounted cash flows and Guideline public companies

Discount Rate

Exit EBITDA Multiple

LTM EBITDA Multiple

NFY EBITDA Multiple

Discount for lack of marketability

Recent transaction

Transaction price

$1.00 – $56.30 ($47.13) per share

Common Equity

6 unchanged sentences

10.0% – 15.0% (10.3%)

Discounted cash flows and Guideline public companies

Discounted cash flows, Guideline public companies and Expected repayment

Discount rate

14.0% – 19.0% (18.2%)

Exit EBITDA Multiple

8.0x – 11.0x (10.5x)

NFY EBITDA Multiple

8.6x – 10.8x (8.9x)

Discount for lack of marketability

Transaction price

$1.00 per share

Similar transactions

Exit EBITDA Multiple

Discount for lack of marketability

LTM EBITDA Multiple

6.0x – 13.4x (10.5x)

Recent transaction

Transaction price

Discounted cash flows and

$1.00 – $1,000.00 ($289.95) per share

Discounted cash flows and Option-pricing method

Discount rate

22.7% – 29.5% (29.2%)

Option-pricing method

Exit EBITDA multiple

2 unchanged sentences

Discount for lack of marketability

10.0% – 15.0% (10.2)%

Recent transaction

Transaction price

Total Level 3 Investments

2 unchanged sentences

The valuation methods selected for a particular investment are based on the circumstances and on the sufficiency of data available to measure fair value.

If more than one valuation method is used to measure fair value, the results are evaluated and weighted, as appropriate, considering the reasonableness of the range indicated by those results.

If more than one valuation method is used to measure fair value, the results are evaluated and weighted, as

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

appropriate, considering the reasonableness of the range indicated by those results.

A fair value measurement is the point within that range that is most representative of fair value in the circumstances.

2 unchanged sentences

Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3.

values on public and private exchanges for comparable securities, current and projected operating performance and financing transactions subsequent to the acquisition of the investment, compliance with agreed upon terms and covenants, and assessment of credit ratings of an underlying borrower.

The determination of fair value using the selected methodologies takes into consideration a range of factors including the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public and private exchanges for comparable securities, current and projected operating performance and financing transactions subsequent to the acquisition of the investment, compliance with agreed upon terms and covenants, and assessment of credit ratings of an underlying borrower.

These valuation methodologies involve a significant degree of judgment to be exercised.

6 unchanged sentences

However, a change in a valuation methodology or its application from one measurement date to another is possible if the change results in a measurement that is equally or more representative of fair value in the circumstances.

The following table presents the par and fair value of the Company’s borrowings as of September 30, 2021 and December 31, 2020.

The following table presents the principal amount and fair value of the Company’s borrowings as of March 31, 2022 and December 31, 2021.

The fair value of the Credit Facility (as defined in Note 6) was estimated by discounting remaining payments using applicable market rates or market quotes for similar instruments at the measurement date, if available.

The fair value of the Company’s 6.0% private notes due 2023 (the “2023 Private Notes”), the 5.375% private notes due 2025 (the “2025 Private Notes”), the 5.375% private notes due 2026 (the “2026 Private Notes”) and the 5.625% private notes due 2027 (the “2027 Private Notes”) were estimated using discounted future cash flows to the valuation date.

The fair value of the 6.5% notes due 2025, (the “2025 Public Notes”) was estimated using the trailing 10-day volume weighted average quoted price as of the valuation date.

As of September 30, 2021

The fair value of the Company’s 6.00% private notes due 2023 (the “6.000% 2023 Notes”), the 5.375% private notes due 2025 (the “5.375% 2025 Notes”), the 5.375% private notes due 2026 (the “5.375% 2026 Notes”), the 4.00% notes due 2026 (the “4.000% 2026 Notes”), the 5.625% private notes due 2027 (the “5.625% 2027 Notes”), and the 4.25% private notes due 2028 (the “4.250% 2028 Notes”) were estimated using discounted future cash flows to the valuation date.

As of March 31, 2022

As of December 31, 2021

Principal Amount Outstanding

JPM Credit Facility

2023 Private Notes

2025 Private Notes

2026 Private Notes

2027 Private Notes

2025 Public Notes

6.000% 2023 Notes

5.375% 2025 Notes

5.375% 2026 Notes

4.000% 2026 Notes

5.625% 2027 Notes

4.250% 2028 Notes

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

NOTE 6 – BORROWINGS

4 unchanged sentences

As a result, the Company’s asset coverage requirements applicable to senior securities decreased from 200% to 150%, effective August 2, 2018.

As of September 30, 2021 and December 31, 2020, the Company’s asset coverage for borrowed amounts was 184.2% and 180.2%, respectively.

Total borrowings outstanding and available as of September 30, 2021, were as follows:

As of March 31, 2022 and December 31, 2021, the Company’s asset coverage for borrowed amounts was 173.4% and 172.6%, respectively.

Total borrowings outstanding and available as of March 31, 2022, were as follows:

Principal Amount Outstanding

Amortized Cost

JPM Credit Facility

2023 Private Notes

2025 Private Notes

2026 Private Notes

2027 Private Notes

2025 Public Notes

Debt issuance cost

Total debt net issuance cost

6.000% 2023 Notes

5.375% 2025 Notes

5.375% 2026 Notes

4.000% 2026 Notes

5.625% 2027 Notes

4.250% 2028 Notes

Total borrowings outstanding and available as of December 31, 2021, were as follows:

Principal Amount Outstanding

Amortized Cost

JPM Credit Facility

2023 Private Notes

2025 Private Notes

2026 Private Notes

2027 Private Notes

2025 Public Notes

Debt issuance cost

Total debt net issuance cost

6.000% 2023 Notes

5.375% 2025 Notes

5.375% 2026 Notes

4.000% 2026 Notes

5.625% 2027 Notes

4.250% 2028 Notes

Credit Facility :

On December 23, 2015, WhiteHorse Credit entered into a $200,000 revolving credit and security agreement with JPMorgan Chase Bank, National Association (“JPMorgan”), as administrative agent and lender (the “Credit Facility”).

On June 27, 2016, the Credit Facility was amended and restated to clarify certain terms.

On June 29, 2017, WhiteHorse Credit and JPMorgan again amended and restated the terms of the Credit Facility to, among other things, (i) extend the maturity date to December 29, 2021, (ii) increase the amount contained within the accordion feature which allows for the expansion of the borrowing limit from $220,000 to $235,000 and (iii) reduce the interest rate spread applicable on outstanding borrowings to 2.75%.

On May 15, 2018, the terms of the Credit Facility were again amended and restated to, among other things, permit the financing of certain assets to be held by WhiteHorse California, a wholly owned subsidiary of WhiteHorse Credit.

In November 2018, the Company entered into an amendment to the Credit Facility, which, among other things, allows for a temporary reduction in the required minimum outstanding borrowings.

On November 22, 2019, the terms of the Credit Facility were again amended and restated to, among other things, (i) extend the maturity date from December 29, 2021 to November 22, 2024;

(ii) increase the size of the facility from $200,000 to $250,000 with an additional $100,000 accordion feature, which allows for the expansion of the borrowing limit, exercisable in increments of at least $35,000 (the “Commitment”);

(iii) reduce the interest rate spread applicable on outstanding borrowings from 2.75% to 2.50%;

(iv) change the minimum borrowing amount from 77.5% to 70.0% of the Commitment;

(v) increase the advance rate from 57% to 60%;

and (vi) extend the non-call period from October 29, 2019 to November 22, 2021.

On December 23, 2015, WhiteHorse Credit entered into a revolving credit and security agreement with JPMorgan, as administrative agent and lender.

On December 21, 2020, the terms of the Credit Facility were amended to, among other things, (i) increase the minimum funding amount from $175,000 to $200,000, (ii) increase the size of the facility from $250,000 to $285,000 and retain an accordion feature which allows for the expansion of the borrowing limit up to $350,000 and (iii) provide for the implementation of certain changes relating to the transition away from LIBOR in the market.

1 unchanged sentence

On July 15, 2021, the terms of the Credit Facility were amended to, among other things, allow WhiteHorse Credit to reduce the applicable margins for interest rates to 2.35%, extend the non-call period from November 22, 2021 to

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

November 22, 2022, extend the end of the reinvestment period from November 22, 2023 to November 22, 2024 and extend the scheduled termination date from November 22, 2024, to November 22, 2025.

The Credit Facility bears interest at LIBOR plus 2.35% on outstanding USD denominated borrowings.

The Credit Facility bears interest at EURIBOR, for EUR denominated borrowings, CDOR for CAD denominated borrowings, SONIA, for GBP denominated, plus a spread of 2.35% on outstanding borrowings.

On October 4, 2021, the terms of the Credit Facility were amended to, among other things, established a temporary upsize to the borrowing capacity under the Credit Facility, which allowed WhiteHorse Credit to borrow up to $335,000 for a three-month period beginning on October 4, 2021.

On January 4, 2022, the terms of the Credit Facility were amended to, among other things, continue to establish a temporary upsize to the borrowing capacity under the Credit Facility, which allowed WhiteHorse Credit to borrow up to $335,000 for a four-month period that originally began on October 4, 2021.

On February 4, 2022, the terms of the Credit Facility were further amended to, among other things (i) permanently increase WhiteHorse Credit’s availability under the Credit Facility from $285,000 to $310,000 (the “$25,000 Increase”), (ii) increase the minimum funding amount from $200,000 to $217,000, (iii) extend an additional temporary increase of $25,000 in availability under the Credit Facility, allowing WhiteHorse Credit to borrow up to $335,000 through April 4, 2022 (the “$25,000 Temporary Increase”), and (iv) apply an annual interest rate equal to applicable SOFR plus 2.50% to any borrowings under the $25,000 Increase in the Credit Facility and the $25,000 Temporary Increase in availability under the Credit Facility.

On March 30, 2022, the terms of the Credit Facility were further amended to, among other things:

(i) increase WhiteHorse Credit’s availability under the Credit Facility from $310,000 to $335,000;

(ii) retain an accordion feature which allows for the expansion of the borrowing limit up to $375,000;

and (iii) increase the minimum funding amount from $217,000 to $234,500.

The Credit Facility bears interest at LIBOR plus 2.35% on outstanding USD denominated borrowings up to $285,000 and SOFR plus 2.50% on borrowings above $285,000.

The Credit Facility bears interest at EURIBOR for EUR denominated borrowings, CDOR for CAD denominated borrowings, SONIA for GBP denominated, plus, in each case, a spread of 2.35% on outstanding borrowings.

The Company is required to pay a non-usage fee which accrues at 0.75% per annum on the average daily unused amount of the financing commitments to the extent the aggregate principal amount available under the Credit Facility has not been borrowed.

The minimum borrowing requirement is $234,500.

In connection with the Credit Facility, WhiteHorse Credit pledged securities with a fair value of approximately $594,638 as of September 30, 2021 as collateral.

In connection with the Credit Facility, WhiteHorse Credit pledged securities with a fair value of approximately $662,487 as of March 31, 2022 as collateral.

The Credit Facility has a maturity date of November 22, 2025.

Under the Credit Facility, the Company has made certain customary representations and warranties and is required to comply with various covenants, including leverage restrictions, reporting requirements and other customary requirements for similar credit facilities.

As of September 30, 2021, the Company had $259,620 in outstanding borrowings and $25,380 undrawn under the Credit Facility.

Weighted average outstanding borrowings were $256,274 and $236,396 at a weighted average interest rate of 2.50% and 2.63%, respectively, for the three and nine months ended September 30, 2021.

As of September 30, 2021, the interest rate in effect on outstanding borrowings was 2.47%.

As of March 31, 2022, the Company had $283,752 in outstanding borrowings and $51,248 undrawn under the Credit Facility.

Weighted average outstanding borrowings were $311,447 at a weighted average interest rate of 2.68% for the three months ended March 31, 2022.

As of March 31, 2022, the interest rate in effect on outstanding borrowings was 2.98%.

The Company’s ability to draw down undrawn funds under the Credit Facility is determined by collateral and portfolio quality requirements stipulated in the credit and security agreement.

As of September 30, 2021, $25,380 was available to be drawn by the Company based on these requirements.

2023 Private Notes :

As of March 31, 2022, $51,248 was available to be drawn by the Company based on these requirements.

As of March 31, 2021, the Company had $214,563 in outstanding borrowings and $70,437 undrawn under the Credit Facility.

Weighted average outstanding borrowings were $224,326 at a weighted average interest rate of 2.72%, respectively, for the three months ended March 31, 2021.

As of March 31, 2021, the interest rate in effect on outstanding borrowings was 2.69%.

The Company’s ability to draw down undrawn funds under the Credit Facility is determined by collateral and portfolio quality requirements stipulated in the credit and security agreement.

At March 31, 2021, approximately $70,437 was available to be drawn by the Company based on these requirements.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

6.000% 2023 Notes :

On July 13, 2018, the Company entered into an agreement (the “2023 Note Purchase Agreement”) to sell in a private offering $30,000 aggregate principal amount of senior unsecured notes to qualified institutional investors in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended.

Interest on the 2023 Private Notes is payable semiannually on February 7 and August 7, at a fixed, annual rate of 6.00%.

This interest rate is subject to increase (up to 6.50%) in the event that, subject to certain exceptions, the 2023 Private Notes cease to have an investment grade rating.

The 2023 Private Notes mature on August 7, 2023, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

The 2023 Private Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

Interest on the 6.000% 2023 Notes is payable semiannually on February 7 and August 7, at a fixed, annual rate of 6.00%.

This interest rate is subject to increase (up to 6.50%) in the event that, subject to certain exceptions, the 6.000% 2023 Notes cease to have an investment grade rating.

The 6.000% 2023 Notes mature on August 7, 2023, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

The 6.000% 2023 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

The closing of the transaction occurred on August 7, 2018.

The Company used the net proceeds from this offering, together with cash on hand, to redeem existing debt.

2025 Private Notes :

On October 20, 2020, the Company entered into a Note Purchase Agreement (the “2025 Note Purchase Agreement”) governing the issuance of $40,000 in aggregate principal amount of unsecured notes (the “2025 Private Notes”) to qualified institutional investors in a private placement.

The 2025 Private Notes have a fixed interest rate of 5.375% and are due on October 20, 2025, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

Interest on the 2025 Private Notes is due semiannually.

This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 2025 Private Notes cease to have an investment grade rating.

In addition, the Company is obligated to offer to repay the 2025 Private Notes at par if certain change in control events occur.

The 2025 Private Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

5.375% 2025 Notes :

On October 20, 2020, the Company entered into a Note Purchase Agreement (the “2025 Note Purchase Agreement”) governing the issuance of $40,000 in aggregate principal amount of unsecured notes (the “5.375% 2025 Notes”) to qualified institutional investors in a private placement.

The 5.375% 2025 Notes have a fixed interest rate of 5.375% and are due on October 20, 2025, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

Interest on the 5.375% 2025 Notes is due semiannually.

This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 5.375% 2025 Notes cease to have an investment grade rating.

In addition, the Company is obligated to offer to repay the 5.375% 2025 Notes at par if certain change in control events occur.

The 5.375% 2025 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

The Company used the net proceeds from this offering to redeem existing debt.

2026 Private Notes :

On December 4, 2020, the Company entered into a Note Purchase Agreement (the “2026 Note Purchase Agreement”) governing the issuance of $10,000 in aggregate principal amount of unsecured notes (the “2026 Private Notes”) to qualified institutional investors in a private placement.

The 2026 Private Notes have a fixed interest rate of 5.375% and are due on December 4, 2026, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

Interest on the 2026 Private Notes is due semiannually.

This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 2026 Private Notes cease to have an investment grade rating.

In addition, the Company is obligated to offer to repay the 2026 Private Notes at par if certain change in control events occur.

The 2026 Private Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

5.375% 2026 Notes :

On December 4, 2020, the Company entered into a Note Purchase Agreement (the “2026 Note Purchase Agreement”) governing the issuance of $10,000 in aggregate principal amount of unsecured notes (the “5.375% 2026 Notes”) to qualified institutional investors in a private placement.

The 5.375% 2026 Notes have a fixed interest rate of 5.375% and are due on December 4, 2026, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

Interest on the 5.375% 2026 Notes is due semiannually.

This interest rate is subject to increase (up to 6.375%) in the event that, subject to certain exceptions, the 5.375% 2026 Notes cease to have an investment grade rating.

In addition, the Company is obligated to offer to repay the 5.375% 2026 Notes at par if certain change in control events occur.

The 5.375% 2026 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

The Company used the net proceeds from this offering to redeem existing debt.

2027 Private Notes :

On December 4, 2020, the Company entered into a Note Purchase Agreement (the “2027 Note Purchase Agreement”) governing the issuance of $10,000 in aggregate principal amount of unsecured notes (the “2027 Private Notes”) to qualified institutional investors in a private placement.

The 2027 Private Notes have a fixed interest rate of 5.625% and are due on December 4, 2027, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

Interest on the 2027 Private Notes is due semiannually.

This interest rate is subject to increase (up to 6.625%) in the event that, subject to certain exceptions, the 2027 Private Notes cease to have an investment grade rating.

In addition, the Company is obligated to offer to repay the 2027 Private Notes at par if certain change in control events occur.

The 2027 Private Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

4.000% 2026 Notes :

On November 24, 2021, the Company completed a public offering of $75,000 of aggregate principal amount of unsecured notes, the net proceeds of which were used to fund investments in debt and equity securities and repay outstanding indebtedness under the Credit Facility.

Interest on the 4.000% 2026 Notes is paid semi-annually on June 15 and December 15 each year, at a fixed, annual rate of 4.00%.

The 4.000% 2026 Notes will mature on December 15, 2026 and may be redeemed in whole or in part at any time prior to September 15, 2026, at par plus a "make-whole"

premium, and thereafter at par.

The 4.000% 2026 Notes will rank equally in right of payment with the other outstanding and future unsecured, unsubordinated indebtedness, including the 6.000% 2023 Notes, the 5.375% 2025 Notes, the 5.375% 2026 Notes, the 5.625% 2027 Notes and the 4.250% 2028 Notes

5.625% 2027 Notes :

On December 4, 2020, the Company entered into a Note Purchase Agreement (the “2027 Note Purchase Agreement”) governing the issuance of $10,000 in aggregate principal amount of unsecured notes (the “5.625% 2027 Notes”) to qualified institutional investors in a private placement.

The 5.625% 2027 Notes have a fixed interest rate of 5.625% and are due on December 4, 2027, unless redeemed, purchased or prepaid prior to such date by the Company or its affiliates in accordance with their terms.

Interest on the 5.625% 2027 Notes is due semiannually.

This interest rate is subject to increase (up to 6.625%) in the event that, subject to certain exceptions, the 5.625% 2027 Notes cease to have an investment grade rating.

In addition, the Company is obligated to offer to repay the 5.625% 2027 Notes at par if certain change in control events occur.

The 5.625% 2027 Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company.

The Company used the net proceeds from this offering to redeem existing debt.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

4.250% 2028 Notes :

On December 6, 2021, the Company entered into a Note Purchase Agreement (the “2028 Note Purchase Agreement,”) governing the issuance of $25,000 in aggregate principal amount of unsecured notes (the “4.25% 2028 Notes”) to qualified institutional investors in a private placement.

Interest on the 4.250% 2028 Notes is payable semiannually on June 6 and December 6, at a fixed, annual rate of 4.25%.

This interest rate is subject to increase (up to 5.25%) in the event that, subject to certain exceptions, the 4.250% 2028 Notes cease to have an investment grade rating.

The 4.250% 2028 Notes mature on December 6, 2028, unless redeemed, purchased or prepaid prior to such date by us or our affiliates in accordance with their terms.

The 4.250% 2028 Notes are general unsecured obligations that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness that we may issue.

The closing of the transaction occurred on December 6, 2021.

The Company used the net proceeds from this offering to redeem existing debt.

2025 Public Notes :

On November 13, 2018, the Company completed a public offering of $35,000 of aggregate principal amount of 2025 Public Notes, the net proceeds of which were used to fund investments in debt and equity securities and repay outstanding indebtedness under its revolving credit facility.

Interest on the 2025 Public Notes is paid quarterly on February 28, May 31, August 31 and November 30 each year, at an annual rate of 6.50%.

The 2025 Public Notes will mature on November 30, 2025 and may be redeemed in whole or in part at any time, or from time to time, at the Company’s option on or after November 30, 2021.

The 2025 Public Notes are direct unsecured obligations and are structurally subordinate to borrowings under the Credit Facility and will rank equally in right of payment with the Company’s other outstanding and future unsecured, unsubordinated indebtedness, including the 2023, 2025, 2026 and 2027 Private Notes.

The 2025 Public Notes are listed on the Nasdaq Global Select Market under the trading symbol “WHFBZ.”

Interest on the 2025 Public Notes was paid quarterly on February 28, May 31, August 31 and November 30 each year, at an annual rate of 6.50%.

The 2025 Public Notes had a maturity date of November 30, 2025 and could be redeemed in whole or in part at any time, or from time to time, at the Company’s option on or after November 30, 2021.

The 2025 Public Notes were redeemed on December 17, 2021 and were de-listed from the Nasdaq Global Select Market where they were trading under the symbol “WHFBZ.”

NOTE 7 - RELATED PARTY TRANSACTIONS

15 unchanged sentences

Base management fees are payable quarterly in arrears and are appropriately pro-rated for any partial month or quarter.

During the three and nine months ended September 30, 2021, the Company incurred base management fees of $3,508 and $10,209, respectively.

During the three and nine months ended September 30, 2020, the Company incurred base management fees of $3,069 and $9,110, respectively.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

The following table details our management fee expenses for the three months ended March 31, 2022 and 2021:

Three months ended March 31,

Management Fees ($ in thousands)

Base management fees

Base management fees waived

Total management fees

As of March 31, 2022 and December 31, 2021, management fees payable on the consolidated statements of assets and liabilities were $3,952 and $3,766, respectively.

Performance-based Incentive Fee

9 unchanged sentences

The first component, which is income-based (the “Income Incentive Fee”), is calculated and payable quarterly in arrears and is determined based on Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter, subject to the Incentive Fee Cap and Deferral Mechanism.

For this purpose, “Pre-Incentive Fee Net Investment Income” means, in each case on a consolidated basis, interest income, distribution 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 received from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the administration agreement (the “Administration Agreement”), any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee).

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

any issued and outstanding preferred stock, but excluding the incentive fee).

Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

1 unchanged sentence

● no incentive fee is payable to the Company’s investment adviser in any calendar quarter in which Pre-Incentive Fee Net Investment Income does not exceed the “Hurdle Rate” of 1.75% (7.00% annualized);

● 100% of 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

(8.75% annualized) is payable to the Company’s investment adviser.

This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the Hurdle Rate but is less than 2.1875%) is referred to as the “catch-up.” The effect of the catch-up is that, if such Pre-Incentive Fee Net Investment Income exceeds 2.1875% in any calendar quarter, the investment adviser will receive 20% of such Pre-Incentive Fee Net Investment Income as if the Hurdle Rate did not apply;

10 unchanged sentences

The capital gains component of the incentive fee is not subject to any minimum return to stockholders.

In accordance with GAAP, the Company is also required to include the aggregate unrealized capital appreciation on investments in the calculation and accrue a capital gains incentive fee on a quarterly basis if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

calculating the fee actually payable under the Investment Advisory Agreement.

If the Capital Gains Incentive Fee Base, adjusted as required by GAAP to include unrealized capital appreciation, is positive at the end of a reporting period, then GAAP requires the Company to accrue a Capital Gains Incentive Fee equal to 20% of such amount, less the aggregate amount of any Capital Gains Incentive Fees previously paid and Capital Gains Incentive Fees accrued under GAAP in all prior periods.

2 unchanged sentences

There can be no assurance that such unrealized capital appreciation will be realized in the future.

For the three and nine months ended September 30, 2021, the Company accrued Capital Gains Incentive Fees of $127 and $1,123, respectively.

For the three and nine months ended September 30, 2020, the Company reversed previously accrued Capital Gains Incentive Fees of $1,870 and $1,243, respectively.

As of September 30, 2021 and December 31, 2020, incentive fees payable on the

consolidated statements of assets and liabilities were $3,255 and $2,132, respectively, for cumulative accruals of Capital Gains Incentive Fees under GAAP, including any amounts payable pursuant to the Investment Advisory Agreement as described above.

Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where it incurs a loss subject to the Incentive Fee Cap and Deferral Mechanism.

For example, if the Company receives Pre-Incentive Fee Net Investment Income in excess of the Hurdle Rate, it will pay the applicable Income Incentive Fee even after incurring a loss in that quarter due to realized and unrealized capital losses.

During the three and nine months ended September 30, 2021, the Company incurred total performance-based incentive fees of $2,069 and $6,739, respectively.

During the three and nine months ended September 30, 2020, the Company incurred total performance-based incentive fees of $3,819 and $5,571, respectively.

As of September 30, 2021 and December 31, 2020, incentive fees payable on the consolidated statements of assets and liabilities were $7,404 and $6,117, respectively.

The following table provides a breakdown of the performance-based incentive fees for the three months ended March 31, 2022 and 2021:

Three months ended March 31,

Performance-based Incentive Fees ($ in thousands)

Income incentive fee

Capital gains incentive fees

Performance-based incentive fees waived

Total performance-based incentive fees

As of March 31, 2022 and December 31, 2021, incentive fees payable on the consolidated statements of assets and liabilities were $5,445 and $7,958, respectively.

As of March 31, 2022 and December 31, 2021, incentive fees payable on the consolidated statements of assets and liabilities include $1,238 and $1,803, respectively, for cumulative accruals of Capital Gains Incentive Fees under GAAP, including any amounts payable pursuant to the Investment Advisory Agreement as described above.

Administration Agreement :

8 unchanged sentences

Substantially all the Company’s payments of operating expenses to third parties were made by a related party, for which such third party received reimbursement from the Company.

During both the three and nine months ended September 30, 2021 and 2020, the Company incurred allocated administrative service fees of $171 and $512, respectively.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

During the three months ended March 31, 2022, the Company incurred $171 of allocated administrative service fees.

During the three months ended March 31, 2021, the Company incurred $171 of allocated administrative service fees.

Co-investments with Related Parties :

As of September 30, 2021 and December 31, 2020, no officers or employees affiliated with or employed by WhiteHorse Advisers and its related entities maintained any co-investments in the Company’s investments.

As of September 30, 2021 and December 31, 2020, certain funds affiliated with WhiteHorse Advisers and its related entities maintained co-investments in the Company’s investments of $3,667,522 and $3,191,269, respectively.

For the three and nine months ended September 30, 2021, the Company sold $45,729 and $106,423 of investments to STRS JV at fair value.

For the three and nine months ended September 30, 2021, the Company recognized net realized gains of $120 and $277, respectively.

For the three and nine months ended September 30, 2020, the Company sold $1,335 and $66,397 of investments to STRS JV at fair value and recognized net realized losses of $0 and $3, respectively.

As of March 31, 2022 and December 31, 2021, no officers or employees affiliated with or employed by WhiteHorse Advisers and its related entities maintained any co-investments in the Company’s investments.

As of March 31, 2022 and December 31, 2021, certain funds affiliated with WhiteHorse Advisers and its related entities maintained co-investments in the Company’s investments of $4,400,903 and $4,502,807, respectively.

For the three months ended March 31, 2022, the Company sold $82,661 of investments to STRS JV and recognized $3 of net realized losses.

For the three months ended March 31, 2021, the Company sold $28,942 of investments to STRS JV and recognized $183 of net realized gains.

NOTE 8 - COMMITMENTS AND CONTINGENCIES

3 unchanged sentences

The Company attempts to limit its credit risk by conducting extensive due diligence and obtaining collateral where appropriate.

The balance of unfunded commitments to extend credit was $33,123 and $19,554 as of September 30, 2021 and December 31, 2020, respectively.

The balance of unfunded commitments to extend credit was $43,137 and $53,113 as of March 31, 2022 and December 31, 2021, respectively.

Commitments to extend credit consist principally of the unused portions of commitments that obligate the Company to extend credit, such as revolving credit arrangements or similar transactions.

2 unchanged sentences

Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The following table summarizes the Company’s unfunded commitments as of September 30, 2021 and December 31, 2020:

Unfunded Commitment ($ in thousands)

As of September 30, 2021

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

The following table summarizes the Company’s unfunded commitments as of March 31, 2022 and December 31, 2021:

Unfunded Commitments (1) ($ in thousands)

As of March 31, 2022

As of December 31, 2021

Revolving Loan Commitments:

BBQ Buyer, LLC

ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)

Bridgepoint Healthcare, LLC

Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)

Claridge Products and Equipment, LLC

Comniscient Technologies LLC

Drew Foam Companies Inc

Coastal Television Broadcasting Group LLC

EducationDynamics, LLC

Epiphany Dermatology

Geo Logic Systems Ltd.

ImageOne Industries, LLC

Epiphany Business Services, LLC (d/b/a Epiphany Dermatology, PA)

I&I Sales Group, LLC (d/b/a Avision Sales Group)

HC Salon Holdings, Inc.

(d/b/a Hair Cuttery)

HRG Management, LLC (d/b/a HomeRiver Group, LLC)

Industrial Specialty Services USA LLC

Inspired Beauty Brands, Inc.

Ivy Rehab Holdings LLC

LHS Borrower, LLC

ITS Buyer Inc.

(d/b/a ITS Logistics, LLC)

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab)

Juniper Landscaping Holdings LLC

LHS Borrower, LLC (d/b/a Leaf Home, LLC)

LMG Holdings, Inc.

Maxitransfers Blocker Corp.

Motivational Marketing, LLC

Newscycle Solutions, Inc.

The Kyjen Company, LLC (dba Outward Hound)

Motivational Marketing, LLC (d/b/a Motivational Fulfillment)

(f/k/a Newscycle Solutions, Inc.)

PFB Holdco, Inc.

(d/b/a PFB Corporation)

PFB Holdco, Inc.

(d/b/a PFB Corporation)

PG Dental New Jersey Parent, LLC

Power Plant Services

RCKC Acquisitions LLC (dba KSM Consulting)

Road Safety Services, Inc.

TaxSlayer LLC

PlayMonster LLC

PPS CR Acquisition, Inc.

(d/b/a Power Plant Services)

RLJ Pro-Vac, Inc.

(d/b/a Pro-Vac)

Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)

Telestream Holdings Corporation

Trimlite Buyer LLC

The Kyjen Company, LLC (d/b/a Outward Hound)

Trimlite Buyer LLC (d/b/a Trimlite LLC)

Total unfunded revolving loan commitments

Delayed Draw Loan Commitments:

DCA Investment Holding,LLC

BBQ Buyer, LLC (d/b/a BBQ Guys)

Bridgepoint Healthcare, LLC

Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)

DCA Investment Holding, LLC (d/b/a Dental Care Alliance, LLC)

EducationDynamics, LLC

Empire Office, Inc.

Epiphany Dermatology

Ivy Rehab Holdings LLC

Grupo HIMA San Pablo, Inc.

HRG Management, LLC (d/b/a HomeRiver Group, LLC)

I&I Sales Group, LLC (d/b/a Avision Sales Group)

IvyRehab Intermediate II, LLC (d/b/a Ivy Rehab)

Juniper Landscaping Holdings LLC

JZ Capital Partners Ltd.

PlayMonster LLC

RCKC Acquisitions LLC (dba KSM Consulting)

Source Code Holdings, LLC

Source Code Holdings, LLC (d/b/a Source Code Corporation)

True Blue Car Wash, LLC

Total unfunded delayed draw loan commitments

As of September 30, 2021, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $15,000 and $60,000, of which $676 and $2,703 was unfunded, respectively.

As of December 31, 2020, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $15,000 and $60,000, of which $4,732 and $18,927 was unfunded, respectively.

Total Unfunded Commitments

(1) Unfunded commitments denominated in non-USD currencies have been converted to USD using the exchange rate as of the applicable reporting date.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

As of March 31, 2022, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $20,000 and $80,000, respectively, both of which were fully funded.

As of December 31, 2021, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $15,000 and $60,000, respectively, both of which were fully funded.

The capital commitments cannot be drawn without an affirmative vote by both the Company’s and STRS Ohio’s representatives on STRS JV’s board of managers.

7 unchanged sentences

COVID-19 Developments :

In addition, during the three and nine months ended September 30, 2021 and subsequent to September 30, 2021, the current pandemic caused by the novel coronavirus (commonly known as “COVID-19”) has had a significant impact on the U.S.

In addition, during the three months ended March 31, 2022 and subsequent to March 31, 2022, the current pandemic caused by the novel coronavirus (commonly known as “COVID-19”) has had a significant impact on the U.S.

Certain of the Company’s portfolio companies were and may continue to be adversely impacted by the effects of the COVID-19 pandemic, which had an adverse impact on the Company’s results of operations and may continue to have an adverse impact on the Company’s future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of the Company’s portfolio companies.

NOTE 9 - STOCKHOLDERS’ EQUITY

On March 15, 2021, the Company launched an "at-the-market"

offering (the "ATM Program") by entering into an Equity Distribution Agreement with Raymond James & Associates, Inc.

On March 15, 2021, the Company launched an “at-the-market” offering (the “ATM Program”) by entering into an Equity Distribution Agreement with Raymond James & Associates, Inc.

pursuant to which the Company may offer and sell, from time to time, through Raymond James & Associates, Inc., as the sales agent, shares of its common stock having an aggregate offering amount of up to $35,000.

During the three months ended September 30, 2021, the Company sold 94,897 shares of its common stock under the ATM Program at a weighted-average price of $15.78 per share, which amounts to $1,497 in gross proceeds.

The Company received net proceeds of $1,467 after deducting commissions to the sales agent.

During the nine months ended September 30, 2021, the Company sold 256,952 shares of its common stock under the ATM Program at a weighted-average price of $15.82 per share, which amounts to $4,064 in gross proceeds.

The Company received net proceeds of $3,983 million after deducting commissions to the sales agent.

To date, the Company has sold 256,952 shares of its common stock under the ATM Program at a weighted-average price of $15.82, which amounts to $4,064 gross proceeds and received net proceeds of $3,983 after deducting commissions to the sales agent.

As of September 30, 2021, the Company had $30,936 available under the ATM Program.

The following table summarizes the total shares issued and proceeds received, net of offering costs, relating to the issuance of shares of the Company’s common stock from the DRIP and pursuant to the ATM Program for the nine months ended September 30, 2021 and September 30, 2020.

Nine months ended September 30,

Since the commencement of the ATM Program, the Company sold 276,360 shares of its common stock under the ATM Program at a weighted-average price of $15.77 per share, which amounted to $4,359 in gross proceeds.

The Company received net proceeds of $4,272 after deducting commissions to the sales agent, but before offering expenses.

As of March 31, 2022, the Company had $30,641 available under the ATM Program.

As of December 31, 2021, the Company had $30,893 available under the ATM Program.

On October 25, 2021, the Company completed an offering of 1,900,000 shares of our common stock at a public offering price of $15.81 per share, inclusive of underwriting discounts and commissions.

The issuance of 1,900,000 shares resulted in net proceeds to the Company of $29,374, inclusive of underwriting discounts and commissions and before offering expenses.

In connection with the offering, the Company granted the underwriters an overallotment option to purchase up to an additional 285,000 shares of the Company’s common stock.

On November 3, 2021, the Company raised an additional $4,326 from the issuance of an additional 282,300 shares pursuant to the underwriters’ exercise of the overallotment option to purchase additional shares.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

Company of $33,700 before offering expenses, which was at or above the Company’s net ass value per share at the time of the offering and the overallotment option.

Three months ended March 31,

($ in thousands except share and per share amounts)

1 unchanged sentence

Shares Issued from DRIP

Total Shares Issued

Proceeds, before offering expenses

Average Price Per Share (1)

(1) The average price per share for the three months ended March 31, 2022, inclusive of offering expenses, was $14.26 per share.

NOTE 10 - FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights:

Nine months ended September 30,

Three months ended March 31,

Per share data:

2 unchanged sentences

Net investment income

Net realized and unrealized gains(losses) on investments

Net realized and unrealized gains(losses) on investments and foreign currency transactions

Net increase in net assets resulting from operations

19 unchanged sentences

The issuance of common stock at a price, net of commissions, that is greater than the net asset value per share results in an increase in net asset value per share.

The impact of the Company’s issuance of common stock on net asset value was less than $0.01 per share during the the nine months ended September 30, 2021.

The impact of the Company’s issuance of common stock on net asset value was less than $0.01 per share during the three months ended March 31, 2022 and March 31, 2021.

Financial highlights are calculated for each securities class taken as a whole.

An individual stockholder’s return and ratios may vary based on the timing of capital transactions.

WhiteHorse Finance, Inc.

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2022

(in thousands, except share and per share data)

NOTE 11 - CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

($ in thousands except share and per share amounts)

3 unchanged sentences

NOTE 12 - SUBSEQUENT EVENTS

Management has evaluated events that have occurred after the balance sheet date but before the consolidated financial statements are issued and other than the items discussed below, the Company has determined that there were no additional subsequent events requiring adjustment or disclosure in the consolidated financial statements.

On October 4, 2021, the terms of the Credit Facility were amended to, among other things, establish a temporary upsize to the borrowing capacity under the Credit Facility, which allows WhiteHorse Credit to borrow up to $335,000 for a three-month period beginning on October 4, 2021.

On October 14, 2021, the Company declared a special distribution of $0.135 per share, which will be payable on December 10, 2021 to stockholders of record as of October 29, 2021.

On October 25, 2021, the Company completed an offering of 1,900,000 shares of our common stock at a public offering price of $15.81 per share, inclusive of underwriting discounts and commissions.

In connection with the offering, the Company granted the underwriters an overallotment option to purchase up to an additional 285,000 shares of the Company’s common stock.

The issuance of 1,900,000 shares resulted in net proceeds to the Company of approximately $29,374, inclusive of underwriting discounts and commissions and before offering expenses.

WhiteHorse Advisers agreed to bear a portion of the underwriting discounts and commissions in connection with the offering, such that the issuance of the 2,182,300 shares (which includes the additional shares issued pursuant to the overallotment option) resulted in net proceeds to the Company of approximately $33,700 before offering expenses, which was at or above the Company’s net asset value per share at the time of the offering and the overallotment option.

Subsequent to the quarter ended September 30, 2021, the Company received financial information related to its investment in Grupo Hima San Pablo, Inc.

Based on the information currently available, the Company expects to reduce the fair value mark of its first lien secured term loan investment from 50% to within a range of between approximately 35% and 45% of face value during the fourth quarter, but this conclusion is subject to change based on additional information which may become available.

The Company’s management has evaluated events that have occurred after the balance sheet date but before the consolidated financial statements are issued and has determined that there were no additional subsequent events requiring adjustment or disclosure in the consolidated financial statements.

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