Delaware

814-00712

20-2725151

(State or other jurisdiction of

(Commission

(IRS Employer

incorporation or organization)

File Number)

Identification Number)

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value

BKCC

NASDAQ Global Select Market

ITEM 2.02.

RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

ITEM 7.01.

REGULATION FD DISCLOSURE.

ITEM 9.01.

FINANCIAL STATEMENTS AND EXHIBITS.

Exhibit

Number

Description

99.1

Press Release, dated as of March 2, 2022

BLACKROCK CAPITAL INVESTMENT

CORPORATION

Date: March 2, 2022

By:

/s/ Abby Miller

Name: Abby Miller

Title: Chief Financial Officer and Treasurer

Investor Contact:

Press Contact:

Nik Singhal

Brian Beades

212.810.5427

212.810.5596

•

GAAP Net Investment Income (“GAAP NII”) was $5.9 million, or $0.08 per share, up 21% from the third quarter, providing fourth quarter distribution coverage of 80%, up from 66% in the third quarter.

•

Adjusted Net Investment Income¹ (“Adjusted NII”) was $6.2 million, or $0.08 per share, providing fourth quarter adjusted distribution coverage of 84%, consistent with the prior quarter. GAAP NII and Adjusted NII include fee and other one-time income of $0.01 per share.

•

Net Asset Value (“NAV”) decreased slightly to $349.7 million, down 0.3% from $350.9 million at the end of the third quarter, and up 11.0% from $315.0 million at the end of 2020; NAV per share decreased by 0.2% to $4.73 per share from $4.74 per share at the end of the third quarter and increased by 11.8% from $4.23 at the end of 2020.

•

Strong gross deployments of $68.5 million during the fourth quarter and $275.0 million for the full year, substantially all in senior secured debt. In the fourth quarter, 13 new portfolio companies were added, bringing total portfolio companies at year-end to 86, up from 55 at the end of 2020. Gross repayments for the fourth quarter were $75.7 million.

•

Junior capital exposure was further reduced to 7% after fully exiting the equity investment in BCIC Senior Loan Partners (“SLP”), which resulted in an additional $31.4 million cash return of capital received during the fourth quarter.

•

Net leverage of 0.56x as of December 31, 2021 was down slightly from 0.57x as of September 30, 2021, and up from 0.51x as of December 31, 2020. Total liquidity for portfolio company investments, including cash, was approximately $224 million, subject to leverage and borrowing base restrictions.

•

Under the existing share repurchase program, 119,633 shares were repurchased during the fourth quarter for approximately $0.5 million at an average price of $4.09 per share, including brokerage commissions.

Three Months Ended December 31, 2021

$ in Millions

%

Deployments

First Lien Debt

53

78%

Second Lien Debt

13

18%

Junior Capital

2

4%

Repayments/Exits

Non-Core & Junior Capital

32

43%

Other Core Assets

44

57%

December 31, 2021

September 30, 2021

December 31, 2020

December 31, 2019

Portfolio Composition

First Lien Debt

74%

68%

50%

34%

Second Lien Debt

19%

20%

27%

23%

Junior Capital¹

7%

12%

23%

43%

Portfolio Company Count

86

78

55

47

Non-Core Assets

Portfolio Company Count²

5

5

6

9

Fair Market Value ("FMV", in Millions)

26

26

42

120

% of investments, at FMV

5%

5%

9%

16%

¹

Includes unsecured/subordinated debt and equity investments.

²

Excludes portfolio companies with zero FMV.

Q4 2021

Q3 2021

Q4 2020

($'s in millions, except per share data) ²

Total Amount

Per Share

Total Amount

Per Share

Total Amount

Per Share

Net Investment Income/(loss)

$5.9

$0.08

$4.9

$0.07

$7.3

$0.10

Net realized and unrealized gains/(losses)

$0.7

$0.01

$6.7

$0.09

$2.6

$0.04

Basic earnings/(losses)

$6.7

$0.09

$11.6

$0.16

$9.9

$0.14

Distributions declared

$7.4

$0.10

$7.4

$0.10

$7.2

$0.10

Net Investment Income/(loss), as adjusted¹

$6.2

$0.08

$6.2

$0.08

$7.3

$0.10

Basic earnings/(losses), as adjusted¹

$6.9

$0.09

$12.9

$0.17

$9.9

$0.14

¹

Non-GAAP basis financial measure, excluding hypothetical liquidation basis capital gain incentive fee accrual under GAAP. See Supplemental Information.

²

Totals may not foot due to rounding.

2021 Totals

2020 Totals

($'s in millions, except per share data)

Total Amount

Per Share

Total Amount

Per Share

Net Investment Income/(loss)

$19.9

$0.27

$34.2

$0.49

Net realized and unrealized gains/(losses)

$46.6

$0.63

$(138.1)

$(1.98)

Basic earnings/(losses)

$66.5

$0.90

$(103.9)

$(1.49)

Distributions declared

$29.7

$0.40

$30.6

$0.44

Net Investment Income/(loss), as adjusted¹

$21.4

$0.29

$34.2

$0.49

Basic earnings/(losses), as adjusted¹

$68.0

$0.92

$(103.9)

$(1.49)

¹

Non-GAAP basis financial measure, excluding hypothetical liquidation basis capital gain incentive fee accrual under GAAP. See Supplemental Information.

($'s in millions, except per share data)

December 31, 2021

September 30, 2021

December 31, 2020

Total assets

$572.0

$575.9

$511.7

Investment portfolio, at fair market value

$552.6

$558.1

$479.0

Debt outstanding

$196.9

$201.4

$179.8

Total net assets

$349.7

$350.9

$315.0

Net asset value per share

$4.73

$4.74

$4.23

Net leverage ratio¹

0.56x

0.57x

0.51x

¹

Calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and receivable for investments sold, plus payables for investments purchased, and (B) NAV.

•

Reduced Exposure in Junior Capital:

o

During the fourth quarter, the Company received $31.4 million in cash return of capital from SLP, primarily with the proceeds of selling its remaining investments in Crown Paper (as previously disclosed), TLE Holdings and PVHC Holding. As of December 31, 2021, the Company exited its equity investment in SLP, as SLP no longer held any investments and SLP’s board of directors elected to dissolve the entity. Additionally, a final distribution of $0.7 million was made to the Company by SLP subsequent to December 31, 2021.

o

At December 31, 2021, the Company’s junior capital exposure (including unsecured/subordinated debt and equity) was further reduced to 7% of the portfolio at FMV, from 23% at December 31, 2020 and 43% at December 31, 2019. Excluding non-core assets, other junior capital exposure reduced to 6%, from 21% at December 31, 2020 and 40% at December 31, 2019.

•

Insignificant Non-core Legacy Portfolio: As of December 31, 2021, non-core legacy assets comprised less than 5% of our total portfolio at FMV, or approximately $25.9 million invested in five portfolio companies (excluding portfolio companies with zero FMV), as compared to 9% at the end of 2020 and 16% at the end of 2019. Out of the remaining non-core legacy assets, approximately 68% were income generating debt investments based on FMV as of December 31, 2021.

•

Share Repurchase Program: On November 2, 2021, the Company’s Board of Directors authorized the Company to purchase up to a total of 8,000,000 shares, effective until the earlier of November 2, 2022, or such time that all the authorized shares have been repurchased. During the fourth quarter, 119,633 shares were repurchased for $488,810 at an average price of $4.09 per share, including brokerage commissions. As of December 31, 2021, 7,906,894 shares remained authorized for repurchase. Cumulative repurchases since BlackRock entered into the investment management agreement with the Company in early 2015 have totaled approximately 8.8 million shares at an average price of $6.36 per share, including brokerage commissions, for a total of $56.2 million. Since the inception of our share repurchase program through December 31, 2021, we have purchased approximately 10.6 million shares at an average price of $6.46 per share, including brokerage commissions, for a total of $68.5 million.

•

GAAP NII was $5.9 million, or approximately $0.08 per share, for the three months ended December 31, 2021 (and Adjusted NII was $6.2 million or $0.08 per share). Relative to distributions declared of $0.10 per share, our NII distribution coverage was 80%, up from 66% from the third quarter; Adjusted NII distribution coverage was 84% for the fourth quarter, same as for the third quarter. As we continue to re-deploy capital into assets consistent with our core strategy, we expect our earnings power to improve in the coming quarters.

•

NAV slightly decreased to $349.7 million at December 31, 2021, down 0.3% from $350.9 million at September 30, 2021. NAV per share slightly decreased 0.2% to $4.73 per share quarter-over-quarter.

•

For the quarter ended December 31, 2021, we incurred management fees of $2.1 million, and incentive fees based on income of $0.2 million.

•

GAAP requires that the capital gains incentive fee accrual consider unrealized capital appreciation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized on a “hypothetical liquidation” basis. For the quarter ended December 31, 2021, a capital gains incentive fee of $0.3 million was accrued on that basis (refer to Supplemental Information below for further details). No amounts were due to the investment advisor for the period. There can be no assurance that such unrealized capital appreciation will actually be realized in the future, or that any accrued capital gains incentive fee will become payable under our investment management agreement or the Advisers Act. Amounts ultimately paid under the investment management agreement will be consistent with the formula reflected in the agreement.

•

Tax characteristics of all 2021 distributions were reported to stockholders on Form 1099 after the end of the calendar year. Our 2021 distributions included a $0.10 per share return of capital. Our return of capital distributions totaled $2.21 per share from inception to December 31, 2021. At our discretion, we may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income.  We will accrue excise tax on estimated undistributed taxable income as required. There was no undistributed taxable income carried forward from 2021, therefore no excise tax payable.

($’s in millions)

Three Months Ended

Year Ended

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Investment deployments

$68.5

$59.9

$275.0

$143.5

Investment exits

$75.7

$193.2

$250.6

$277.6

Number of portfolio company investments

at the end of period

86

55

86

55

Weighted average yield of debt and income producing equity securities, at fair market value

8.7%

8.9%

8.7%

8.9%

% of Portfolio invested in Secured debt, at fair market value

93%

77%

93%

77%

% of Portfolio invested in Unsecured debt, at fair market value

5%

13%

5%

13%

% of Portfolio invested in Equity, at fair market value

2%

10%

2%

10%

Average investment by portfolio company, at amortized cost

$7.1

$11.0

$7.1

$11.0

•

We deployed $68.5 million during the quarter while exits and repayments totaled $75.7 million, resulting in a $7.2 million net decrease in our portfolio, primarily due to additional progress made in reducing our junior capital exposure.

▪

Deployments primarily consisted of thirteen new portfolio companies (including two acquisitions from SLP) and nine investments/funding into existing portfolio companies, which are outlined as follows:

▪

$7.2 million L + 8.88% second lien term loan to Astra Acquisition Corp., a provider of educational software to higher education and K-12 institutions globally;

▪

$5.5 million L + 8.00% first lien term loan and $9.7 million unfunded delayed draw term loan to SellerX Germany GmbH & Co. Kg, a Germany based consolidator of small to medium sized brands that sell through Amazon’s third-party platform;

▪

$5.4 million L + 7.00% first lien delayed draw term loan (with an additional $5.4 million unfunded) to SumUp Holdings Luxembourg S.A.R.L., a United Kingdom based global mobile point of sale provider;

▪

$3.5 million L + 7.50% second lien term loan, $1.2 million unfunded delayed draw term loan, and $2.5 million of preferred stock with 12.5% PIK to Blackbird Purchaser Inc., a distributor of technical products supporting industrial automation and motion control needs of industrial facilities;

▪

$3.2 million L + 6.50% first lien term loan, $1.9 million unfunded delayed draw term loan and $0.8 million unfunded revolver to Homerenew Buyer, Inc., a provider of home repair and remodeling services;

▪

$2.5 million L + 6.00% first lien term loan to PHRG Intermediate, LLC, a full service exterior remodeling company;

▪

$2.4 million L + 7.50% first lien term loan to Aerospike, Inc., a developer and seller of proprietary NoSQL data solutions;

▪

$2.2 million L + 7.50% second lien term loan and $0.4 million unfunded delayed draw term loan to BW Holding, Inc., a manufacturer of premium label solutions;

▪

$1.5 million L + 6.00% first lien term loan, $0.3 million unfunded delayed draw term loan and $0.1 million unfunded revolver to Integrate.com Inc., a provider of precision demand marketing software;

▪

$1.5 million L + 6.50% first lien term loan, $0.4 million unfunded delayed draw term loan and $0.1 million unfunded revolver to Zilliant Incorporated, a provider of price optimization and management software for enterprise business-to-business companies; and

▪

$1.4 million L + 6.00% first lien term loan, $0.3 million unfunded delayed draw term loan and $0.2 million revolver to Suited Connector, LLC, a digital marketing and data solutions platform, focused on lead generation within the financial services market.

▪

$3.5 million of L + 7.25% first lien term loan to CareATC, Inc.;

▪

$3.2 million L + 9.00% first lien delayed draw term loan funding to Razor Group GmbH;

▪

$2.7 million of L + 8.75% first lien term loan to JobandTalent USA, Inc.;

▪

$2.0 million of L + 6.50% first lien term loan to Superman Holdings, LLC;

▪

$1.5 million L + 6.00% first lien delayed draw term loan funding to Tempus, LLC;

▪

$1.5 million of L + 8.00% first lien term loan to Metricstream, Inc.;

▪

$1.2 million L + 7.00% funding to Aras Corporation, Inc., which includes $0.8 million of first lien term loan and $0.4 million of first lien delayed draw term loan funding;

▪

$0.7 million L + 6.25% first lien revolver funding to Dude Solutions Holdings, Inc.; and

▪

$0.6 million of L + 7.25% first lien term loan to Pico Quantitative Trading, LLC.

▪

$10.3 million L + 4.75% first lien term loan to PVHC Holding Corp., a leading provider of pressurized dispensing components including aerosol container valves and actuators; and

▪

$3.9 million L + 5.50% first lien term loan and $1.0 million fully funded delayed draw term loan to TLE Holdings, LLC, a franchisor and owner-operator of education-based childcare centers.

▪

Sales, exits, and repayments were primarily concentrated in five portfolio company investments:

▪

$31.4 million of cash proceeds (with a claim to an escrow receivable of $0.7 million) from our equity investment in SLP;

▪

$21.0 million full repayment of second lien term loan in Paragon Films, Inc.;

▪

$10.6 million full repayment of first lien term loan in Live Auctioneers, LLC;

▪

$6.4 million full repayment of first lien term loan in One Sky Flight, LLC; and

▪

$3.4 million full repayment of first lien delayed draw term loan in Peter C. Foy & Associates Insurance Services, LLC.

•

During the quarter ended December 31, 2021, there were no new non-accrual investments. As of December 31, 2021, there were three non-accrual investment positions, representing approximately 4.2% and 13.4% of total debt and preferred stock investments, at fair value and cost, respectively, as compared to three non-accrual investment positions of approximately 4.3% and 14.0% of total debt and preferred stock investments at fair value and cost, respectively, at September 30, 2021, and as compared to four non-accrual investment positions of approximately 6.5% and 17.8% of total debt and preferred stock investments at fair value and cost, respectively, at December 31, 2020. The weighted average internal investment rating of the portfolio at FMV at December 31, 2021 improved to 1.21 as compared to 1.33 at September 30, 2021 and 1.90 at December 31, 2020.

•

During the quarter ended December 31, 2021, net realized and unrealized gains were $0.7 million, primarily attributable to net appreciation in portfolio valuations during the quarter.

•

At December 31, 2021, we had $12.8 million in cash and cash equivalents and $211.0 million of availability under our credit facility, subject to leverage restrictions, resulting in approximately $223.8 million of availability for portfolio company investments. Committed but unfunded portfolio obligations at December 31, 2021 were $49.4 million at par. We believe there is sufficient liquidity to meet all of the Company’s obligations and deploy new capital consistent with our strategy.

•

Net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance costs, was 0.56x at quarter-end, and our 276% asset coverage ratio provided the Company with additional debt capacity of $211.0 million under its asset coverage requirements, subject to borrowing capacity and borrowing base restrictions. Further, as of December 31, 2021, approximately 88% of our assets were invested in qualifying assets, exceeding the 70% regulatory requirement of a business development company.

•

For the fourth quarter of 2021, the Company declared a cash dividend of $0.10 per share, payable on April 7, 2022 to stockholders of record at the close of business on March 17, 2022.

December 31, 2021

December 31, 2020

Assets

Investments at fair value:

Non-controlled, non-affiliated investments (cost of $520,501,274 and $369,079,320)

$526,504,945

$354,957,936

Non-controlled, affiliated investments (cost of $5,027,616 and $20,927,907)

4,131,978

13,099,313

Controlled investments (cost of $89,097,765 and $216,768,227)

21,927,071

110,968,227

Total investments at fair value (cost of $614,626,655 and $606,775,454)

552,563,994

479,025,476

Cash and cash equivalents

12,750,121

23,332,831

Interest, dividends and fees receivable

3,671,722

2,138,304

Deferred debt issuance costs

1,511,418

1,374,115

Receivable for investments sold

690,550

5,439,507

Prepaid expenses and other assets

788,469

409,357

Total assets

$571,976,274

$511,719,590

Liabilities

Debt (net of deferred issuance costs of $425,272 and $1,360,356)

$196,875,330

$179,798,037

Payable for investments purchased

11,679,798

9,193,917

Distributions payable

7,392,972

—

Management fees payable

2,122,519

2,313,447

Income incentive fees payable

170,002

1,849,597

Accrued capital gains incentive fees

1,544,569

—

Interest and debt related payables

601,379

502,682

Accrued administrative expenses

384,225

389,064

Accrued expenses and other liabilities

1,553,507

2,662,569

Total liabilities

222,324,301

196,709,313

Net assets

Common stock, par value $.001 per share, 200,000,000 common shares authorized, 84,478,251 and 84,478,251 issued and 73,876,987 and 74,466,665 outstanding

84,478

84,478

Paid-in capital in excess of par

852,360,178

858,079,713

Distributable earnings (losses)

(434,303,297)

(476,857,055)

Treasury stock at cost, 10,601,264 and 10,011,586 shares held

(68,489,386)

(66,296,859)

Total net assets

349,651,973

315,010,277

Total liabilities and net assets

$571,976,274

$511,719,590

Net assets per share

$4.73

$4.23

Three Months Ended (Unaudited)

Year Ended

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Investment income

Interest income (excluding PIK):

Non-controlled, non-affiliated investments

$

11,858,713

$

8,160,377

$

40,366,030

$

31,426,192

Non-controlled, affiliated investments

—

117,138

11,867

474,862

Controlled investments

—

3,184,893

718,571

19,794,470

PIK interest income:

Non-controlled, non-affiliated investments

59,418

1,268,636

2,092,736

5,026,084

Non-controlled, affiliated investments

121,265

121,049

481,800

461,367

Controlled investments

—

—

—

1,053,664

Dividend income (excluding PIK):

Non-controlled, affiliated investments

—

—

71,500

—

Controlled investments

116,648

1,220,030

1,647,661

8,190,499

PIK dividend income:

Non-controlled, non-affiliated investments

15,177

—

15,177

—

Other income:

Non-controlled, non-affiliated investments

429,090

543,312

839,678

620,705

Non-controlled, affiliated investments

—

(7,377

)

—

(3,055

)

Controlled investments

—

3,186

—

70,712

Total investment income

12,600,311

14,611,244

46,245,020

67,115,500

Expenses:

Interest and other debt expenses

2,925,218

3,344,257

11,620,899

15,584,214

Management fees

2,122,519

2,313,447

7,784,188

10,799,832

Incentive fees on income

170,002

1,278,947

249,385

6,304,333

Incentive fees on capital gains(1)

252,617

—

1,544,569

—

Administrative expenses

384,225

389,064

1,354,283

1,457,979

Professional fees

131,039

432,544

1,100,008

1,964,252

Insurance expense

204,198

203,794

809,356

650,432

Director fees

158,125

157,500

622,500

652,250

Investment advisor expenses

87,500

87,500

350,000

350,000

Other operating expenses

230,022

374,873

1,011,273

1,433,054

Total expenses, before incentive fee waiver

6,665,465

8,581,926

26,446,461

39,196,346

Incentive fee waiver

—

(1,278,947

)

(79,383

)

(6,304,333

)

Total expenses, net of incentive fee waiver

6,665,465

7,302,979

26,367,078

32,892,013

Net investment income(1)

5,934,846

7,308,265

19,877,942

34,223,487

Realized and Unrealized Gain (Loss):

Net realized gain (loss):

Non-controlled, non-affiliated investments

—

(612,107

)

21,408,577

(12,941,524

)

Non-controlled, affiliated investments

—

(77,952

)

(7,989,591

)

(43,851,965

)

Controlled investments

(21,980,388

)

—

(32,496,018

)

(59,194,744

)

   Net realized gain (loss)

(21,980,388

)

(690,059

)

(19,077,032

)

(115,988,233

)

    Net change in unrealized appreciation (depreciation):

Non-controlled, non-affiliated investments

226,419

5,978,376

20,125,055

(2,123,600

)

Non-controlled, affiliated investments

(86,942

)

848,530

6,932,957

35,523,356

Controlled investments

22,565,269

(3,870,607

)

38,914,666

(55,623,040

)

Foreign currency translation

—

325,302

(285,360

)

135,427

   Net change in unrealized appreciation (depreciation)

22,704,746

3,281,601

65,687,318

(22,087,857

)

Net realized and unrealized gain (loss)

724,358

2,591,542

46,610,286

(138,076,090

)

Net Increase (Decrease) in Net Assets Resulting from Operations

6,659,204

9,899,807

66,488,228

(103,852,603

)

Net Investment Income Per Share—basic(1)

$

0.08

$

0.10

$

0.27

$

0.49

Earnings (Loss) Per Share—basic(1)

$

0.09

$

0.14

$

0.90

$

(1.49

)

Weighted Average Shares Outstanding—basic

73,950,159

72,358,355

74,153,145

69,801,849

Net Investment Income Per Share—diluted(1)

$

0.08

$

0.10

$

0.27

$

0.49

Earnings (Loss) Per Share—diluted(1)

$

0.09

$

0.14

$

0.83

$

(1.49

)

Weighted Average Shares Outstanding—diluted

90,943,896

89,352,092

91,146,882

86,795,585

⁽¹⁾

Net investment income and per share amounts displayed above are net of the accrual for incentive fees on capital gains which is reflected on a hypothetical liquidation basis in accordance with GAAP for the three months and year ended December 31, 2021. Refer to Supplemental Information section below for further details and as adjusted figures that reflect that there were no incentive fees on capital gains realized and payable to the Advisor during such periods.

Three Months Ended

Year Ended

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

GAAP Basis:

Net Investment Income

$5,934,846

$7,308,265

$19,877,942

$34,223,487

Net Investment Income per share

0.08

0.10

0.27

0.49

Addback: GAAP incentive fee based on capital gains

252,617

—

1,544,569

—

Addback: GAAP incentive fee based on Income net of incentive fee waiver

170,002

—

170,002

—

Pre-Incentive Fee¹:

Net Investment Income

$6,357,465

$7,308,265

$21,592,513

$34,223,487

Net Investment Income per share

0.09

0.10

0.29

0.49

Less: Incremental incentive fee based on Income net of incentive fee waiver

(170,002)

—

(170,002)

—

As Adjusted²:

Net Investment Income

$6,187,463

$7,308,265

$21,422,511

$34,223,487

Net Investment Income per share

0.08

0.10

0.29

0.49

¹

Pre-Incentive Fee: Amounts are adjusted to remove all incentive fees. Such fees have been accrued but are not due and payable at the reporting date.

²

As Adjusted: Amounts are adjusted to remove the GAAP accrual for incentive fee based on capital gains, and to include only the incremental incentive fee based on income. Adjusted amounts reflect the fact that no Incentive Fee on capital gains was realized and payable to the Advisor during the three months and years ended December 31, 2021 and 2020, respectively. Under the Company’s investment management agreement, incentive fee based on income is calculated for each calendar quarter and may be paid on a quarterly basis if certain thresholds are met. Amounts reflect the Company's ongoing operating results and reflect the Company's financial performance over time.