{"url_path":"/sec/gainz/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-12","source_url":"https://www.sec.gov/Archives/edgar/data/1321741/0001321741-26-000011-index.html","accession_number":"0001321741-26-000011","cik":"0001321741","ticker":"GAINZ","issuer_name":"GLADSTONE INVESTMENT CORPORATION\\DE","edgar_url":"https://www.sec.gov/Archives/edgar/data/1321741/0001321741-26-000011-index.html","primary_entity_key":"0001321741","primary_entity_name":"GLADSTONE INVESTMENT CORPORATION\\DE"},"word_count":23826,"has_tables":true,"body_markdown":"ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA\n\nIndex to Consolidated Financial Statements\n\n[Management’s Annual Report on Internal Controls Over Financial Reporting](#id4d58da65d414707b3cd9972f3050497_244)\n\n[73](#id4d58da65d414707b3cd9972f3050497_244)\n\n[Report of Independent Registered Public Accounting Firm](#id4d58da65d414707b3cd9972f3050497_247) (PCAOB ID 238)\n\n[74](#id4d58da65d414707b3cd9972f3050497_247)\n\n[Consolidated Statements of Assets and Liabilities as of](#id4d58da65d414707b3cd9972f3050497_250)March 31, 2026[and](#id4d58da65d414707b3cd9972f3050497_250)2025\n\n[76](#id4d58da65d414707b3cd9972f3050497_250)\n\n[Consolidated Statements of Operations for the years ended](#id4d58da65d414707b3cd9972f3050497_253)March 31, 2026[,](#id4d58da65d414707b3cd9972f3050497_253)2025[and](#id4d58da65d414707b3cd9972f3050497_253)2024\n\n[77](#id4d58da65d414707b3cd9972f3050497_253)\n\n[Consolidated Statements of Changes in Net Assets for the years ended](#id4d58da65d414707b3cd9972f3050497_256)March 31, 2026[,](#id4d58da65d414707b3cd9972f3050497_253)2025[and](#id4d58da65d414707b3cd9972f3050497_253)2024\n\n[78](#id4d58da65d414707b3cd9972f3050497_256)\n\n[Consolidated Statements of Cash Flows for the years ended](#id4d58da65d414707b3cd9972f3050497_259)March 31, 2026[,](#id4d58da65d414707b3cd9972f3050497_253)2025[and](#id4d58da65d414707b3cd9972f3050497_253)2024\n\n[79](#id4d58da65d414707b3cd9972f3050497_259)\n\n[Consolidated Schedules of Investments as of](#id4d58da65d414707b3cd9972f3050497_265)March 31, 2026[and](#id4d58da65d414707b3cd9972f3050497_250)2025\n\n[81](#id4d58da65d414707b3cd9972f3050497_265)\n\n[Notes to Consolidated Financial Statements](#id4d58da65d414707b3cd9972f3050497_268)\n\n[91](#id4d58da65d414707b3cd9972f3050497_268)\n\n72\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nManagement’s Annual Report on Internal Control over Financial Reporting\n\nTo the Board of Directors and Stockholders of Gladstone Investment Corporation:\n\nOur management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and include those policies and procedures that: (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the dispositions of our assets; (2) provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with appropriate authorizations; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.\n\nUnder the supervision and with the participation of our management, including our chief executive officer and our chief financial officer, we assessed the effectiveness of our internal control over financial reporting as of March 31, 2026, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013). Based on its assessment, management has concluded that our internal control over financial reporting was effective as of March 31, 2026.\n\nMay 12, 2026\n\n73\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Board of Directors and Stockholders of Gladstone Investment Corporation\n\nOpinion on the Financial Statements\n\nWe have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Gladstone Investment Corporation and its subsidiary (the “Company”) as of March 31, 2026 and 2025, and the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended March 31, 2026, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations, changes in its net assets and its cash flows for each of the three years in the period ended March 31, 2026 in conformity with accounting principles generally accepted in the United States of America.\n\nWe have also previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statements of assets and liabilities, including the consolidated schedules of investments, of the Company as of March 31, 2024, 2023, and 2022, and the related consolidated statements of operations, changes in net assets and cash flows for the years ended March 31, 2023 and 2022 (none of which are presented herein), and we expressed unqualified opinions on those consolidated financial statements. In our opinion, the information set forth in the Senior Securities table of the Company for each of the five years in the period ended March 31, 2026 is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived.\n\nBasis for Opinion\n\nThese consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.\n\nOur audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of March 31, 2026 and 2025 by correspondence with the custodian, agent banks, and portfolio company investees. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical Audit Matters\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\n74\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nValuation of Level 3 Investments\n\nAs described in Notes 2 and 3 to the consolidated financial statements, the Company held $1.3 billion of total level 3 investments at fair value as of March 31, 2026. Management uses significant unobservable inputs in estimating the fair value of its level 3 investments, including (i) with respect to investments valued using a total enterprise value, portfolio company earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA multiples, revenue and revenue multiples, or a discounted cash flow analysis using estimated risk-adjusted discount rates; (ii) with respect to investments valued using a yield analysis, a modified discount rate; and (iii) with respect to investments valued using market quotations for which a limited market exists, the lower indicative bid price in the bid-to-ask price range.\n\nThe principal considerations for our determination that performing procedures relating to the valuation of level 3 investments is a critical audit matter are (i) the significant judgment by management to determine the fair value of these level 3 investments using a total enterprise value or yield analysis due to the use of significant unobservable inputs, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence related to the EBITDA and EBITDA multiples and revenue and revenue multiples used in a total enterprise value and the modified discount rate used in a yield analysis, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, among others, either (i) testing management’s process for determining the fair value estimate, including testing the completeness and accuracy of data provided by management, evaluating the appropriateness of management’s valuation methods, and evaluating the reasonableness of the EBITDA and EBITDA multiples and revenue and revenue multiples used in a total enterprise value and the modified discount rate used in a yield analysis by considering current and past performance of the investment, consistency of the unobservable inputs with external market data and evidence obtained in other areas of the audit, and management’s historical forecasting accuracy, or (ii) the involvement of professionals with specialized skill and knowledge to assist in developing an independent fair value estimate for certain level 3 investments and comparison of management’s estimate to the independently developed estimate. Developing an independent fair value estimate involved testing the completeness and accuracy of data provided by management and independently developing significant unobservable inputs related to the modified discount rate for those investments valued using a yield analysis and the EBITDA and EBITDA multiples or revenue and revenue multiples for those investments valued using a total enterprise value.\n\n/s/ PricewaterhouseCoopers LLP\n\nWashington, District of Columbia\n\nMay 12, 2026\n\nWe have served as the Company’s auditor since 2005.\n\n75\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES\n\n(DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)\n\nMarch 31,\n\n20262025\n\nASSETS\n\nInvestments at fair value\n\nNon-Control/Non-Affiliate investments (Cost of $711,741 and $562,371, respectively)\n$983,959 $648,589 \n\nAffiliate investments (Cost of $323,698 and $359,286, respectively)\n324,676 330,388 \n\nControl investments (Cost of $17,409 and $17,409, respectively)\n613 343 \n\nCash\n1,132 12,944 \n\nCash equivalents25 \n\n1,354 \n\nRestricted cash\n1,228 \n\n856 \n\nInterest receivable\n6,823 5,582 \n\nDue from administrative agent\n2,035 2,891 \n\nDeferred financing costs, net\n636 1,471 \n\nOther assets, net\n1,718 1,986 \n\nTOTAL ASSETS\n$1,322,845 $1,006,404 \n\nLIABILITIES\n\nBorrowings:\n\nLine of credit at fair value (Cost of $23,900 and $0, respectively)\n$23,946 $— \n\nNotes payable, net of unamortized deferred financing costs of $8,460 and $8,029, respectively\n540,528 455,709 \n\nTotal borrowings\n564,474 455,709 \n\nAccounts payable and accrued expenses\n1,247 1,291 \n\nInterest payable\n6,388 4,879 \n\nFees due to Adviser(A)\n80,507 43,817 \n\nFee due to Administrator(A)\n780 767 \n\nOther liabilities\n1,224 857 \n\nTOTAL LIABILITIES\n654,620 507,320 \n\nCommitments and contingencies(B)\n\nNET ASSETS\n$668,225 $499,084 \n\nANALYSIS OF NET ASSETS\n\nCommon stock, $0.001 par value per share, 100,000,000 shares authorized; 39,821,967 and 36,837,381 shares issued and outstanding, respectively\n$40 $37 \n\nCapital in excess of par value\n486,717 445,512 \n\nTotal distributable earnings(C)\n181,468 53,535 \n\nTOTAL NET ASSETS\n$668,225 $499,084 \n\nNET ASSET VALUE PER SHARE\n$16.78 $13.55 \n\n(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.\n\n(B)Refer to Note 10 — Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.\n\n(C)Refer to Note 2 — Summary of Significant Accounting Policies in the accompanying Notes to Consolidated Financial Statements for additional information.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n76\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)\n\nYear Ended March 31,\n\n202620252024\n\nINVESTMENT INCOME\n\nInterest income:\n\nNon-Control/Non-Affiliate investments$64,004 $59,762 $56,424 \n\nAffiliate investments25,386 23,605 24,578 \n\nCash and cash equivalents351 245 792 \n\nTotal interest income89,741 83,612 81,794 \n\nDividend income:\n\nNon-Control/Non-Affiliate investments1,063 3,254 — \n\nAffiliate investments5,048 26 1,907 \n\nTotal dividend income6,111 3,280 1,907 \n\nSuccess fee income:\n\nNon-Control/Non-Affiliate investments2,032 5,934 2,285 \n\nAffiliate investments1,193 836 1,320 \n\nTotal success fee income3,225 6,770 3,605 \n\nTotal investment income\n99,077 93,662 87,306 \n\nEXPENSES\n\nBase management fee(A)\n22,824 19,105 17,500 \n\nLoan servicing fee(A)\n11,821 9,636 9,118 \n\nIncentive fee(A)\n38,280 12,265 21,047 \n\nAdministration fee(A)\n1,959 1,914 1,789 \n\nInterest expense on borrowings37,140 28,246 24,121 \n\nAmortization of deferred financing costs and discounts3,881 2,852 2,305 \n\nProfessional fees2,069 1,593 1,382 \n\nOther general and administrative expenses2,109 4,701 2,981 \n\nExpenses before credits from Adviser120,083 80,312 80,243 \n\nCredits to base management fee – loan servicing fee(A)\n(11,821)(9,636)(9,118)\n\nCredits to fees from Adviser - other(A)\n(5,433)(5,109)(5,596)\n\nTotal expenses, net of credits to fees102,829 65,567 65,529 \n\nNET INVESTMENT (LOSS) INCOME\n$(3,752)$28,095 $21,777 \n\nREALIZED AND UNREALIZED GAIN (LOSS)\n\nNet realized gain (loss):\n\nNon-Control/Non-Affiliate investments$120 $19,811 $43,749 \n\nAffiliate investments(26,414)43,373 275 \n\nControl investments— — (13,768)\n\nOther(1,301)— — \n\nTotal net realized gain (loss)(27,595)63,184 30,256 \n\nNet unrealized appreciation (depreciation):\n\nNon-Control/Non-Affiliate investments186,000 8,786 9,864 \n\nAffiliate investments29,876 (32,184)10,317 \n\nControl investments270 (2,562)13,120 \n\nOther(46)— (29)\n\nTotal net unrealized appreciation (depreciation)216,100 (25,960)33,272 \n\nNet realized and unrealized gain188,505 37,224 63,528 \n\nNET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS\n$184,753 $65,319 $85,305 \n\nBASIC AND DILUTED PER COMMON SHARE:\n\nNet investment (loss) income\n$(0.10)$0.76 $0.63 \n\nNet increase in net assets resulting from operations\n$4.77 $1.78 $2.47 \n\nWEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING:\n\nBasic and diluted38,712,611 36,735,218 34,466,724 \n\n(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n77\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS\n\n(IN THOUSANDS)\n\nYear Ended March 31,\n\n202620252024\n\nNET ASSETS, BEGINNING OF YEAR\n$499,084 $492,711 $439,742 \n\nOPERATIONS\n\nNet investment (loss) income$(3,752)$28,095 $21,777 \n\nNet realized (loss) gain on investments(26,294)63,184 30,256 \n\nNet realized loss on other(1,301)— — \n\nNet unrealized appreciation (depreciation) of investments216,146 (25,960)33,301 \n\nNet unrealized appreciation of other(46)— (29)\n\nNet increase in net assets from operations\n184,753 65,319 85,305 \n\nDISTRIBUTIONS(A)\n\nDistributions to common stockholders from net investment income ($0.99, $0.64, and $1.08 per share, respectively)\n(38,499)(23,480)(37,509)\n\nDistributions to common stockholders from cumulative realized gains ($0.51, $1.02, and $1.12 per share, respectively)\n(18,663)(37,471)(38,552)\n\nNet decrease in net assets from distributions\n(57,162)(60,951)(76,061)\n\nCAPITAL ACTIVITY\n\nIssuance of common stock\n42,132 2,029 44,508 \n\nDiscounts, commissions, and offering costs for issuance of common stock\n(582)(24)(783)\n\nNet increase in net assets from capital activity\n41,550 2,005 43,725 \n\nTOTAL INCREASE IN NET ASSETS\n169,141 6,373 52,969 \n\nNET ASSETS, END OF YEAR(A)\n$668,225 $499,084 $492,711 \n\n(A)Refer to Note 8 — Distributions to Common Stockholders in the accompanying Notes to Consolidated Financial Statements for additional information.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n78\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(IN THOUSANDS)\n\nYear Ended March 31,\n\n202620252024\n\nCASH FLOWS FROM OPERATING ACTIVITIES\n\nNet increase in net assets resulting from operations\n$184,753 $65,319 $85,305 \n\nAdjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:\n\nPurchase of investments\n(173,616)(221,217)(183,924)\n\nPrincipal repayments of investments\n29,896 123,600 28,000 \n\nNet proceeds from the sale and recapitalization of investments\n3,644 76,025 52,228 \n\nNet realized loss (gain) on investments\n26,294 (63,184)(30,256)\n\nNet realized loss on other\n1,301 — — \n\nNet unrealized (appreciation) depreciation of investments\n(216,146)25,960 (33,301)\n\nNet unrealized appreciation of other46 — 29 \n\nAmortization of deferred financing costs and discounts\n3,881 2,852 2,305 \n\nBad debt expense, net of recoveries\n(202)1,601 1 \n\nChanges in assets and liabilities:\n\n(Increase) decrease in interest receivable\n(1,305)761 (4,589)\n\nDecrease in due from administrative agent\n856 536 472 \n\nDecrease (increase) in other assets, net\n559 (436)(181)\n\n(Decrease) increase in accounts payable and accrued expenses\n(44)559 (54)\n\nIncrease in interest payable\n1,509 1,414 1,156 \n\nIncrease in fees due to Adviser(A)\n36,586 2,380 12,375 \n\nIncrease in fee due to Administrator(A)\n13 40 11 \n\nIncrease in other liabilities\n367 98 485 \n\nNet cash (used in) provided by operating activities(101,608)16,308 (69,938)\n\nCASH FLOWS FROM FINANCING ACTIVITIES\n\nProceeds from issuance of common stock, net of discounts, commissions and offering costs\n41,637 2,005 43,899 \n\nProceeds from line of credit\n295,400 214,100 242,300 \n\nRepayments on line of credit\n(271,500)(281,100)(210,500)\n\nDeferred financing costs from line of credit\n(333)(763)(1,906)\n\nRepayment of notes payable(74,750)— — \n\nProceeds from issuance of notes payable, net of deferred offering costs\n155,547 122,335 72,178 \n\nDistributions paid to common stockholders\n(57,162)(60,951)(76,061)\n\nNet cash provided by (used in) financing activities\n88,839 (4,374)69,910 \n\nNET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH\n(12,769)11,934 (28)\n\nCASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR\n15,154 3,220 3,248 \n\nCASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR\n$2,385 $15,154 $3,220 \n\nCASH PAID FOR INTEREST\n$33,769 $25,431 $21,978 \n\n(A)Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n79\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nSupplemental disclosures of non-cash operating activities:\n\nFor the year ended March 31, 2026:\n\n•In September 2025, we restructured our existing first lien term loans and line of credit to J.R. Hobbs Co. – Atlanta, LLC with an aggregate total cost basis of $49.9 million into a new $20.0 million first lien term loan, which resulted in a realized loss of $29.9 million.\n\nFor the year ended March 31, 2024:\n\n•In March 2024, we recognized a $14.7 million realized loss on our preferred and common equity investments and related first and second lien debt investments in The Mountain Corporation upon its liquidation and dissolution.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n80\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS\n\nMarch 31, 2026\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/\n\nUnits(F)(H)\nCostFair Value\n\nNON-CONTROL/NON-AFFILIATE INVESTMENTS(L) – 147.2%\n\nSecured First Lien Debt – 56.0%\n\nAerospace and Defense – 16.1%\n\nDetroit Defense, Inc.(K) – Term Debt (SOFR+9.0%, 13.0% Cash, Due 12/2029)(J)(Q)\n$61,305 $61,305 $61,305 \n\nGlobal GRAB Technologies, Inc. – Term Debt (SOFR+9.0%, 13.5% Cash, Due 7/2030)(J)\n46,500 46,500 46,500 \n\n107,805 107,805 \n\nBuildings and Real Estate –5.7%\n\nDema/Mai Holdings, Inc. – Term Debt (SOFR+11.0%, 14.7% Cash, Due 7/2027)(J)\n38,250 38,250 38,250 \n\nChemicals, Plastics, and Rubber - 5.3%\n\nSmart Chemical Solutions, LLC(K) – Term Debt (SOFR+9.0%, 13.5% Cash, Due 5/2030)(J)\n35,660 35,660 35,660 \n\nDiversified/Conglomerate Manufacturing – 0.9%\n\nPhoenix Door Systems, Inc. – Line of Credit, $0 available (SOFR+7.0%, 10.7% Cash (0.3% Unused Fee), Due 9/2026)(J)\n2,950 2,950 2,950 \n\nPhoenix Door Systems, Inc. – Term Debt (SOFR+11.0%, 14.7% Cash, Due 9/2026)(J)\n3,200 3,200 3,200 \n\n6,150 6,150 \n\nDiversified/Conglomerate Services – 5.2%\n\nMason West, LLC – Term Debt (SOFR+10.0%, 13.7% Cash, Due 7/2027)(J)\n25,250 25,250 25,250 \n\nSun State Nursery and Landscaping, LLC – Term Debt (SOFR+9.0%, 13.5% Cash, Due 5/2030)(J)\n9,520 9,520 9,520 \n\n34,770 34,770 \n\nHealthcare, Education, and Childcare – 4.5%\n\nEducators Resource, Inc. – Term Debt (SOFR+10.5%, 14.2% Cash, Due 2/2030)(J)\n30,000 30,000 30,000 \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 5.5%\n\nBrunswick Bowling Products, Inc. – Term Debt (SOFR+10.0%, 13.7% Cash, Due 3/2029)(J)\n17,700 17,700 17,700 \n\nBrunswick Bowling Products, Inc. – Term Debt (SOFR+10.0%, 13.7% Cash, Due 3/2029)(J)\n6,850 6,850 6,850 \n\nGinsey Home Solutions, Inc. – Term Debt (SOFR+10.0%, 13.7% Cash, Due 11/2028)(J)\n12,200 12,200 12,200 \n\n36,750 36,750 \n\nLeisure, Amusement, Motion Pictures, and Entertainment – 2.5%\n\nSchylling, Inc. – Term Debt (SOFR+11.0%, 14.7% Cash, Due 9/2027)(J)\n16,981 16,981 16,981 \n\nOil and Gas – 9.0%\n\nThe E3 Company, LLC – Term Debt (SOFR+9.0%, 13.5% Cash, Due 9/2028)(J)\n33,750 33,750 33,750 \n\nRowan Energy Inc. – Term Debt (SOFR+9.0%, 14.5% Cash, Due 12/2030)(J)\n25,790 25,790 25,790 \n\n59,540 59,540 \n\nPrinting and Publishing – 1.3%\n\nHome Concepts Acquisition, Inc. – Term Debt (SOFR+9.0%, 13.0% Cash, Due 5/2028)(J)\n12,000 12,000 8,379 \n\nTotal Secured First Lien Debt$377,906 $374,285 \n\nSecured Second Lien Debt – 14.6%\n\nAerospace and Defense – 3.8%\n\nGalaxy Technologies Holdings, Inc. – Term Debt (SOFR+4.1%, 7.8% Cash, Due 10/2028)(J)\n$6,900 $6,900 $6,900 \n\nGalaxy Technologies Holdings, Inc. – Term Debt (SOFR+7.0%, 10.7% Cash, Due 10/2028)(J)\n18,796 18,796 18,796 \n\n25,696 25,696 \n\nCargo Transport – 0.1%\n\nDiligent Delivery Systems – Term Debt (SOFR+9.0%, 12.7% Cash, Due 1/2027)(G)(J)\n13,000 13,000 512 \n\nDiversified/Conglomerate Services – 2.5%\n\nHorizon Facilities Services, Inc. – Term Debt (SOFR+0.5%, 6.0% Cash, Due 6/2028)(J)\n57,700 57,700 16,545 \n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n81\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)\n\nMarch 31, 2026\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/\n\nUnits(F)(H)\nCostFair Value\n\nMachinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 8.2%\n\nSFEG Holdings, Inc. – Term Debt (SOFR+7.0%, 12.5% Cash, Due 10/2028)(J)\n$54,644 $54,644 $54,644 \n\nTotal Secured Second Lien Debt$151,040 $97,397 \n\nPreferred Equity – 45.6%\n\nAerospace and Defense – 5.6%\n\nDetroit Defense, Inc.(K) – Preferred Stock(C)(J)(Q)\n17,388 $17,388 $12,572 \n\nGlobal GRAB Technologies, Inc. – Preferred Stock(C)(J)\n21,100 21,100 25,022 \n\n38,488 37,594 \n\nBuildings and Real Estate – 4.6%\n\nDema/Mai Holdings, Inc. – Preferred Stock(C)(J)\n21,000 21,000 30,737 \n\nChemicals, Plastics, and Rubber – 1.1%\n\nSmart Chemical Solutions, LLC(K) – Preferred Stock(C)(J)\n13,843 13,843 7,327 \n\nDiversified/Conglomerate Services – 3.5%\n\nHorizon Facilities Services, Inc. – Preferred Stock(C)(J)\n10,080 — — \n\nMason West, LLC – Preferred Stock(C)(J)\n11,206 11,206 19,235 \n\nSun State Nursery and Landscaping, LLC – Preferred Stock(C)(J)\n3,059 3,059 3,718 \n\n14,265 22,953 \n\nHealthcare, Education, and Childcare – 1.7%\n\nEducators Resource, Inc. – Preferred Stock(C)(J)\n8,560 8,560 11,630 \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 9.3%\n\nBrunswick Bowling Products, Inc. – Preferred Stock(C)(J)\n6,653 6,653 49,815 \n\nGinsey Home Solutions, Inc. – Preferred Stock(C)(J)\n19,280 9,583 12,258 \n\n16,236 62,073 \n\nLeisure, Amusement, Motion Pictures, and Entertainment – 9.9%\n\nSchylling, Inc. – Preferred Stock(C)(J)\n4,000 4,000 66,403 \n\nOil and Gas – 9.9%\n\nThe E3 Company, LLC – Preferred Stock(C)(J)\n11,233 11,233 58,570 \n\nRowan Energy Inc. – Preferred Stock(C)(J)\n7,298 7,298 7,495 \n\n18,531 66,065 \n\nPrinting and Publishing - 0.0%\n\nHome Concepts Acquisition, Inc. – Preferred Stock(C)(J)\n3,275 3,275 — \n\nTotal Preferred Equity\n$138,198 $304,782 \n\nCommon Equity/Equivalents – 31.0%\n\nAerospace and Defense – 0.5%\n\nGalaxy Technologies Holdings, Inc. – Common Stock(C)(J)\n16,957 $11,513 $3,447 \n\nCargo Transport – 0.0%\n\nDiligent Delivery Systems – Common Stock Warrants(C)(J)\n8 %500 — \n\nDiversified/Conglomerate Manufacturing– 0.0%\n\nPhoenix Door Systems, Inc. – Common Stock(C)(J)\n4,221 1,830 — \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 0.0%\n\nGinsey Home Solutions, Inc. – Common Stock(C)(J)\n63,747 8 — \n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n82\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)\n\nMarch 31, 2026\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/\n\nUnits(F)(H)\nCostFair Value\n\nMachinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 30.5%\n\nSFEG Holdings, Inc. – Common Stock(C)(J)\n18,721 $30,746 $204,048 \n\nTotal Common Equity/Equivalents$44,597 $207,495 \n\nTotal Non-Control/Non-Affiliate Investments$711,741 $983,959 \n\nAFFILIATE INVESTMENTS(M) – 48.6%\n\nSecured First Lien Debt – 29.4%\n\nDiversified/Conglomerate Services – 10.6%\n\nImageWorks Display and Marketing Group, Inc. – Term Debt (SOFR+11.0%, 14.7% Cash, Due 11/2028)(J)\n$22,000 $22,000 $22,000 \n\nJ.R. Hobbs Co. - Atlanta, LLC – Term Debt (SOFR+6.0%, 10.0% Cash, Due 9/2030)(J)\n20,000 20,000 20,000 \n\nThe Maids International, LLC – Term Debt (SOFR+10.5%, 14.2% Cash, Due 3/2028)(J)\n28,560 28,560 28,560 \n\n70,560 70,560 \n\nElectronics – 7.2%\n\nNielsen-Kellerman Acquisition Corp.(K) – Term Debt (SOFR+8.5%, 13.5% Cash, Due 12/2029)(J)\n48,082 48,082 48,082 \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 5.7%\n\nOld World Christmas, Inc. – Term Debt (SOFR+9.5%, 13.2% Cash, Due 12/2028)(J)\n38,000 38,000 38,000 \n\nLeisure, Amusement, Motion Pictures, and Entertainment –3.0%\n\nPyrotek Special Effects, Inc.(P) – Term Debt (SOFR+8.0%, 13.0% Cash, Due 11/2029)(J)\n20,120 20,120 20,120 \n\nMining, Steel, Iron and Non-Precious Metals – 1.6%\n\nUPB Acquisition, Inc. – Term Debt (SOFR+10.0%, 13.7% Cash, Due 7/2028)(J)\n11,000 11,000 11,000 \n\nTelecommunications – 1.3%\n\nB+T Group Acquisition, Inc.(K) – Line of Credit, $0 available (SOFR+2.0%, 7.0% Cash, Due 12/2026)(G)(J)\n3,080 3,080 3,080 \n\nB+T Group Acquisition, Inc.(K) – Line of Credit, $0 available (SOFR+2.0%, 7.0% Cash, Due 12/2026)(G)(J)\n1,050 1,050 1,050 \n\nB+T Group Acquisition, Inc.(K) – Term Debt (SOFR+2.0%, 7.0% Cash, Due 12/2026)(G)(J)\n14,000 14,000 3,812 \n\n18,130 7,942 \n\nTotal Secured First Lien Debt$205,892 $195,704 \n\nSecured Second Lien Debt – 0.3%\n\nChemicals, Plastics, and Rubber – 0.3%\n\nPSI Molded Plastics, Inc. – Line of Credit, $600 available (SOFR+1.0%, 7.0% Cash, Due 2/2028)(J)\n$1,400 $1,400 $1,400 \n\nPSI Molded Plastics, Inc. – Term Debt (SOFR+1.0%, 7.0% Cash, Due 2/2028)(J)\n400 400 400 \n\n1,800 1,800 \n\nTotal Secured Second Lien Debt$1,800 $1,800 \n\nPreferred Equity – 18.2%\n\nChemicals, Plastics, and Rubber – 0.7%\n\nPSI Molded Plastics, Inc. – Preferred Stock(C)(J)\n428,773 $46,746 $4,928 \n\nDiversified/Conglomerate Services – 6.6%\n\nImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(J)\n67,490 6,749 30,453 \n\nJ.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(J)\n10,920 10,920 9,236 \n\nThe Maids International, LLC – Preferred Stock(C)(J)\n6,640 6,640 4,631 \n\n24,309 44,320 \n\nElectronics – 2.2%\n\nNielsen-Kellerman Acquisition Corp.(K) – Preferred Stock(C)(J)\n22,169 22,169 14,641 \n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n83\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)\n\nMarch 31, 2026\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/\n\nUnits(F)(H)\nCostFair Value\n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 4.4%\n\nOld World Christmas, Inc. – Preferred Stock(C)(J)\n6,180 $— $29,730 \n\nLeisure, Amusement, Motion Pictures, and Entertainment –0.3%\n\nPyrotek Special Effects, Inc.(P) – Preferred Stock(C)(J)\n7,060 7,060 1,835 \n\nMining, Steel, Iron and Non-Precious Metals – 4.0%\n\nUPB Acquisition, Inc – Preferred Stock(C)(J)\n6,000 6,000 26,713 \n\nTelecommunications – 0.0%\n\nB+T Group Acquisition, Inc.(K) – Preferred Stock(C)(J)\n14,304 4,722 — \n\nTotal Preferred Equity$111,006 $122,167 \n\nCommon Equity/Equivalents – 0.7%\n\nFinance – 0.7%\n\nGladstone Alternative Income Fund – Common Equity(C)(O)\n500,000 $5,000 $5,005 \n\nTelecommunications – 0.0%\n\nB+T Group Acquisition, Inc.(K) – Common Stock Warrants(C)(J)\n3.5 %— — \n\nTotal Common Equity/Equivalents$5,000 $5,005 \n\nTotal Affiliate Investments$323,698 $324,676 \n\nCONTROL INVESTMENTS(N) – 0.1%\n\nSecured First Lien Debt – 0.1%\n\nDiversified/Conglomerate Manufacturing – 0.1%\n\nEdge Adhesives Holdings, Inc.(K) – Term Debt (SOFR+5.5%, 9.2% Cash, Due 8/2026)(G)(J)\n$9,210 $9,210 $613 \n\nTotal Secured First Lien Debt$9,210 $613 \n\nPreferred Equity – 0.0%\n\nDiversified/Conglomerate Manufacturing – 0.0%\n\nEdge Adhesives Holdings, Inc.(K) – Preferred Stock(C)(J)\n8,199 $8,199 $— \n\nTotal Preferred Equity$8,199 $— \n\nTotal Control Investments$17,409 $613 \n\nTOTAL INVESTMENTS – 195.9%(R)\n$1,052,848 $1,309,248 \n\nCASH EQUIVALENTS - 0.0%\n\nDreyfus Treasury Obligations Cash Management Fund (3.30% market yield)(S)\n25 $25 $25 \n\nTotal Cash Equivalents$25 $25 \n\nTOTAL INVESTMENTS AND CASH EQUIVALENTS - 195.9%\n$1,052,873 $1,309,273 \n\n(A)Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company. The majority of the securities listed, totaling $1.2 billion at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5—Borrowings in the accompanying Notes to Consolidated Financial Statements. Additionally, under Section 55 of the Investment Company Act of 1940, as amended (the \"1940 Act\"), we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of March 31, 2026, our investments in Pyrotek Special Effects, Inc. (\"Pyrotek\") and Gladstone Alternative Income Fund (\"Gladstone Alternative\") are considered non-qualifying assets under Section 55 of the 1940 Act. Such non-qualifying assets represent 2.1% of total investments, at fair value, as of March 31, 2026.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n84\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)\n\nMarch 31, 2026\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\n(B)Unless indicated otherwise, all cash interest rates are indexed to 30-day Secured Overnight Financing Rate (\"SOFR\"), which was 3.7% as of March 31, 2026. If applicable, paid-in-kind interest rates are noted separately from the cash interest rate. Certain securities are subject to an interest rate floor. The cash interest rate is the greater of the floor or the reference rate plus a spread. Due dates represent the contractual maturity date.\n\n(C)Security is non-income producing.\n\n(D)Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of March 31, 2026.\n\n(E)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the Financial Accounting Standards Board (\"FASB\") Accounting Standards Codification (\"ASC\") Topic 820, \"Fair Value Measurement\" (\"ASC 820\") fair value hierarchy. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.\n\n(F)Where applicable, aggregates all shares of a class of stock owned without regard to specific series owned within such class (some series of which may or may not be voting shares) or aggregates all warrants to purchase shares of a class of stock owned without regard to specific series of such class of stock such warrants allow us to purchase.\n\n(G)Debt security is on non-accrual status.\n\n(H)Represents the principal balance, presented in thousands, for debt investments, the cash balance, presented in thousands, for cash equivalents, and the number of shares/units held for equity investments. Warrants are represented as a percentage of ownership, as applicable.\n\n(I)Reserved.\n\n(J)Fair value was based on the total enterprise value of the portfolio company, which is generally allocated to the portfolio company’s securities in order of their relative priority in the capital structure. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.\n\n(K)One or more of our affiliated funds, Gladstone Capital Corporation and Gladstone Alternative, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.\n\n(L)Non-Control/Non-Affiliate investments, as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 5.0% of the issued and outstanding voting securities.\n\n(M)Affiliate investments, as defined by the 1940 Act, are those that are not Control investments and in which we own, with the power to vote, between and inclusive of 5.0% and 25.0% of the issued and outstanding voting securities.\n\n(N)Control investments, as defined by the 1940 Act, are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.\n\n(O)Fair value was based on net asset value provided by the underlying fund as a practical expedient.\n\n(P)This portfolio company is headquartered in Ontario, Canada.\n\n(Q)The portfolio company changed its name from Ricardo Defense, Inc. to Detroit Defense, Inc. during the year ended March 31, 2026.\n\n(R)Cumulative gross unrealized appreciation for federal income tax purposes is $428.5 million; cumulative gross unrealized depreciation for federal income tax purposes is $173.7 million. Cumulative net unrealized appreciation is $254.8 million, based on a tax cost of $1.1 billion.\n\n(S)Valued using Level 1 inputs within the FASB ASC 820 fair value hierarchy. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n85\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS\n\nMarch 31, 2025\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/ Units(F)(H)\nCostFair Value\n\nNON-CONTROL/NON-AFFILIATE INVESTMENTS(L) –130.0%\n\nSecured First Lien Debt – 60.3%\n\nAerospace and Defense – 12.3%\n\nRicardo Defense, Inc.(K) – Term Debt (SOFR+9.0%, 13.3% Cash, Due 12/2029)(J)\n$61,305 $61,305 $61,305 \n\nBuildings and Real Estate – 7.7%\n\nDema/Mai Holdings, Inc. – Term Debt (SOFR+11.0%, 15.3% Cash, Due 7/2027)(J)\n38,250 38,250 38,250 \n\nDiversified/Conglomerate Manufacturing – 1.2%\n\nPhoenix Door Systems, Inc. – Line of Credit, $0 available (SOFR+1.4%, 5.7% Cash (0.3% Unused Fee), Due 9/2026)(J)\n2,950 2,950 2,950 \n\nPhoenix Door Systems, Inc. – Term Debt (SOFR+3.4%, 7.7% Cash, Due 9/2026)(J)\n3,200 3,200 3,200 \n\n6,150 6,150 \n\nDiversified/Conglomerate Services – 11.0%\n\nHorizon Facilities Services, Inc. – Term Debt (SOFR+0.5%, 6.0% Cash, Due 6/2026)(J)\n57,700 57,700 29,634 \n\nMason West, LLC – Term Debt (SOFR+10.0%, 14.3% Cash, Due 7/2025)(J)\n25,250 25,250 25,250 \n\n82,950 54,884 \n\nHealthcare, Education, and Childcare – 6.0%\n\nEducators Resource, Inc. – Term Debt (SOFR+10.5%, 14.8% Cash, Due 2/2030)(J)\n30,000 30,000 30,000 \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 7.4%\n\nBrunswick Bowling Products, Inc. – Term Debt (SOFR+10.0%, 14.3% Cash, Due 3/2029)(J)\n17,700 17,700 17,700 \n\nBrunswick Bowling Products, Inc. – Term Debt (SOFR+10.0%, 14.3% Cash, Due 3/2029)(J)\n6,850 6,850 6,850 \n\nGinsey Home Solutions, Inc. – Term Debt (SOFR+10.0%, 14.3% Cash, Due 11/2025)(J)\n12,200 12,200 12,200 \n\n36,750 36,750 \n\nLeisure, Amusement, Motion Pictures, and Entertainment – 5.6%\n\nSchylling, Inc. – Term Debt (SOFR+11.0%, 15.3% Cash, Due 9/2027)(J)\n27,981 27,981 27,981 \n\nOil and Gas – 6.8%\n\nThe E3 Company, LLC – Term Debt (SOFR+9.0%, 13.5% Cash, Due 9/2028)(J)\n33,750 33,750 33,750 \n\nPrinting and Publishing – 2.3%\n\nHome Concepts Acquisition, Inc. – Line of Credit, $0 available (SOFR+6.0%, 10.3% Cash, Due 11/2025)(J)\n2,000 2,000 2,000 \n\nHome Concepts Acquisition, Inc. – Line of Credit, $0 available (SOFR+6.0%, 10.3% Cash, Due 11/2025)(J)\n400 400 400 \n\nHome Concepts Acquisition, Inc. – Term Debt (SOFR+9.0%, 13.3% Cash, Due 5/2028)(J)\n12,000 12,000 9,281 \n\n14,400 11,681 \n\nTotal Secured First Lien Debt$331,536 $300,751 \n\nSecured Second Lien Debt – 18.6%\n\nAerospace and Defense – 5.2%\n\nGalaxy Technologies Holdings, Inc. – Term Debt (SOFR+4.1%, 8.4% Cash, Due 10/2026)(J)\n$6,900 $6,900 $6,900 \n\nGalaxy Technologies Holdings, Inc. – Term Debt (SOFR+7.0%, 11.3% Cash, Due 10/2026)(J)\n18,796 18,796 18,796 \n\n25,696 25,696 \n\nCargo Transport – 2.5%\n\nDiligent Delivery Systems – Term Debt (SOFR+9.0%, 13.3% Cash, Due 9/2025)(G)(I)\n13,000 13,000 12,624 \n\nMachinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 10.9%\n\nSFEG Holdings, Inc. – Term Debt (SOFR+7.0%, 12.5% Cash, Due 10/2028)(J)\n54,644 54,644 54,644 \n\nTotal Secured Second Lien Debt$93,340 $92,964 \n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n86\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS\n\nMarch 31, 2025\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/ Units(F)(H)\nCostFair Value\n\nPreferred Equity – 40.2%\n\nAerospace and Defense – 3.5%\n\nRicardo Defense, Inc.(K) – Preferred Stock(C)(J)\n17,388 $17,388 $17,388 \n\nBuildings and Real Estate – 6.2%\n\nDema/Mai Holdings, Inc. – Preferred Stock(C)(J)\n21,000 21,000 31,070 \n\nDiversified/Conglomerate Services – 2.7%\n\nHorizon Facilities Services, Inc. – Preferred Stock(C)(J)\n10,080 — — \n\nMason West, LLC – Preferred Stock(C)(J)\n11,206 11,206 13,262 \n\n11,206 13,262 \n\nHealthcare, Education, and Childcare – 4.3%\n\nEducators Resource, Inc. – Preferred Stock(C)(J)\n8,560 8,560 21,501 \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 12.2%\n\nBrunswick Bowling Products, Inc. – Preferred Stock(C)(J)\n6,653 6,653 51,877 \n\nGinsey Home Solutions, Inc. – Preferred Stock(C)(J)\n19,280 9,583 9,070 \n\n16,236 60,947 \n\nLeisure, Amusement, Motion Pictures, and Entertainment – 4.1%\n\nSchylling, Inc. – Preferred Stock(C)(J)\n4,000 4,000 20,599 \n\nOil and Gas – 7.2%\n\nThe E3 Company, LLC – Preferred Stock(C)(J)\n11,233 11,233 35,839 \n\nPrinting and Publishing - 0.0%\n\nHome Concepts Acquisition, Inc. – Preferred Stock(C)(J)\n3,275 3,275 — \n\nTotal Preferred Equity\n$92,898 $200,606 \n\nCommon Equity/Equivalents – 10.9%\n\nAerospace and Defense – 0.7%\n\nGalaxy Technologies Holdings, Inc. – Common Stock(C)(J)\n16,957 $11,513 $3,480 \n\nCargo Transport – 0.0%\n\nDiligent Delivery Systems – Common Stock Warrants(C)(J)\n8 %\n\n500 — \n\nDiversified/Conglomerate Manufacturing – 0.0%\n\nPhoenix Door Systems, Inc. – Common Stock(C)(J)\n4,221 1,830 — \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 0.0%\n\nGinsey Home Solutions, Inc. – Common Stock(C)(J)\n63,747 8 — \n\nMachinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 10.2%\n\nSFEG Holdings, Inc. – Common Stock(C)(J)\n18,721 30,746 50,788 \n\nTotal Common Equity/Equivalents$44,597 $54,268 \n\nTotal Non-Control/Non-Affiliate Investments$562,371 $648,589 \n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n87\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS\n\nMarch 31, 2025\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/ Units(F)(H)\nCostFair Value\n\nAFFILIATE INVESTMENTS(M) – 66.1%\n\nSecured First Lien Debt – 42.7%\n\nDiversified/Conglomerate Services – 16.2%\n\nImageWorks Display and Marketing Group, Inc. – Term Debt (SOFR+11.0%, 15.3% Cash, Due 11/2028)(J)\n$22,000 $22,000 $22,000 \n\nJ.R. Hobbs Co. - Atlanta, LLC – Line of Credit, $0 available (SOFR+6.0%, 10.3% Cash, Due 6/2025)(G)(J)\n5,000 5,000 3,036 \n\nJ.R. Hobbs Co. - Atlanta, LLC - Term Debt (SOFR+6.0%, 10.3% Cash, Due 6/2025) (G)(J)\n16,500 16,500 10,019 \n\nJ.R. Hobbs Co. - Atlanta, LLC – Term Debt (SOFR+10.3%, 14.6% Cash, Due 6/2025) (G)(J)\n26,000 26,000 15,788 \n\nJ.R. Hobbs Co. - Atlanta, LLC – Term Debt (SOFR+6.0%, 10.3% Cash, Due 6/2025) (G)(J)\n2,438 2,438 1,480 \n\nThe Maids International, LLC – Term Debt (SOFR+10.5%, 14.8% Cash, Due 3/2028)(J)\n28,560 28,560 28,560 \n\n100,498 80,883 \n\nElectronics – 9.9%\n\nNielsen-Kellerman Acquisition Corp.(K) – Line of Credit, $2,820 available (SOFR+5.0%, 10.0% Cash, Due 12/2025)(J)\n1,070 1,070 1,070 \n\nNielsen-Kellerman Acquisition Corp. (K) – Term Debt (SOFR+8.5%,13.5% Cash, Due 12/2029)(J)\n48,082 48,082 48,082 \n\n49,152 49,152 \n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 7.6%\n\nOld World Christmas, Inc. – Term Debt (SOFR+9.5%, 13.8% Cash, Due 12/2028)(J)\n38,000 38,000 38,000 \n\nLeisure, Amusement, Motion Pictures, and Entertainment – 4.5%\n\nPyrotek Special Effects, Inc.(P) – Line of Credit, $500 available (SOFR+5.0%, 10.0% Cash, Due 11/2026)(J)\n2,500 2,500 2,500 \n\nPyrotek Special Effects, Inc.(P) – Term Debt (SOFR+8.0%, 13.0% Cash, Due 11/2029)(J)\n20,120 20,120 20,120 \n\n22,620 22,620 \n\nMining, Steel, Iron and Non-Precious Metals – 3.0%\n\nUPB Acquisition, Inc. – Term Debt (SOFR+10.0%, 14.3% Cash, Due 7/2026)(J)\n15,000 15,000 15,000 \n\nTelecommunications – 1.5%\n\nB+T Group Acquisition, Inc.(K) – Line of Credit, $0 available (SOFR+2.0%, 7.0% Cash, Due 12/2026)(G)(J)\n3,080 3,080 3,080 \n\nB+T Group Acquisition, Inc.(K) – Line of Credit, $120 available (SOFR+2.0%, 7.0% Cash, Due 6/2025)(G)(J)\n930 930 930 \n\nB+T Group Acquisition, Inc.(K) – Term Debt (SOFR+2.0%, 7.0% Cash, Due 12/2026)(G)(J)\n14,000 14,000 3,575 \n\n18,010 7,585 \n\nTotal Secured First Lien Debt$243,280 $213,240 \n\nSecured Second Lien Debt – 2.1%\n\nChemicals, Plastics, and Rubber – 2.1%\n\nPSI Molded Plastics, Inc. – Term Debt (SOFR+1.0%, 7.0% Cash, Due 1/2028)(J)\n$10,616 $10,616 $10,616 \n\nTotal Secured Second Lien Debt\n$10,616 $10,616 \n\nPreferred Equity – 20.3%\n\nChemicals, Plastics, and Rubber – 0.2%\n\nPSI Molded Plastics, Inc. – Preferred Stock(C)(J)\n322,598 $36,130 $996 \n\nDiversified/Conglomerate Services – 4.3%\n\nImageWorks Display and Marketing Group, Inc. – Preferred Stock(C)(J)\n67,490 6,749 12,921 \n\nJ.R. Hobbs Co. – Atlanta, LLC – Preferred Stock(C)(J)\n10,920 10,920 — \n\nThe Maids International, LLC – Preferred Stock(C)(J)\n6,640 6,640 8,410 \n\n24,309 21,331 \n\nElectronics – 4.5%\n\nNielsen-Kellerman Acquisition Corp.(K) – Preferred Stock(C)(J)\n22,169 22,169 22,421 \n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n88\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS\n\nMarch 31, 2025\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\nCompany and Investment(A)(B)(D)(E)\n\nPrincipal/Shares/ Units(F)(H)\nCostFair Value\n\nHome and Office Furnishings, Housewares, and Durable Consumer Products – 4.7%\n\nOld World Christmas, Inc. – Preferred Stock(C)(J)\n6,180 $— $23,539 \n\nLeisure, Amusement, Motion Pictures, and Entertainment – 1.4%\n\nPyrotek Special Effects, Inc.(P) – Preferred Stock(C)(J)\n7,060 7,060 7,260 \n\nMining, Steel, Iron and Non-Precious Metals – 5.2%\n\nUPB Acquisition, Inc. – Preferred Stock(C)(J)\n6,000 6,000 26,010 \n\nTelecommunications – 0.0%\n\nB+T Group Acquisition, Inc.(K) – Preferred Stock(C)(J)\n14,304 4,722 — \n\nTotal Preferred Equity$100,390 $101,557 \n\nCommon Equity/Equivalents – 1.0%\n\nFinance – 1.0%\n\nGladstone Alternative Income Fund – Common Equity(C)(O)\n500,000 $5,000 $4,975 \n\nTelecommunications – 0.0%\n\nB+T Group Acquisition, Inc.(K) – Common Stock Warrants(C)(J)\n3.5 %— — \n\nTotal Common Equity/Equivalents$5,000 $4,975 \n\nTotal Affiliate Investments$359,286 $330,388 \n\nCONTROL INVESTMENTS(N) – 0.1%\n\nSecured First Lien Debt – 0.1%\n\nDiversified/Conglomerate Manufacturing – 0.1%\n\nEdge Adhesives Holdings, Inc.(K) – Term Debt (SOFR+5.5%, 9.8% Cash, Due 8/2026)(G)(J)\n$9,210 $9,210 $343 \n\nTotal Secured First Lien Debt$9,210 $343 \n\nPreferred Equity – 0.0%\n\nDiversified/Conglomerate Manufacturing – 0.0%\n\nEdge Adhesives Holdings, Inc.(K) – Preferred Stock(C)(J)\n8,199 $8,199 $— \n\nTotal Preferred Equity$8,199 $— \n\nTotal Control Investments$17,409 $343 \n\nTOTAL INVESTMENTS – 196.2%(Q)\n$939,066 $979,320 \n\nCASH EQUIVALENTS - 0.3%\n\nDreyfus Treasury Obligations Cash Management Fund (3.97% market yield)(R)\n1,354 $1,354 $1,354 \n\nTotal Cash Equivalents$1,354 $1,354 \n\nTOTAL INVESTMENTS AND CASH EQUIVALENTS - 196.5%\n$940,420 $980,674 \n\n(A)Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company. The majority of the securities listed, totaling $764.7 million at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5—Borrowings in the accompanying Notes to Consolidated Financial Statements. Additionally, under Section 55 of the 1940 Act, we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. As of March 31, 2025, our investments in Pyrotek and Gladstone Alternative are considered non-qualifying assets under Section 55 of the 1940 Act. Such non-qualifying assets represent 3.6% of total investments, at fair value, as of March 31, 2025.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n89\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nCONSOLIDATED SCHEDULE OF INVESTMENTS\n\nMarch 31, 2025\n\n(DOLLAR AMOUNTS IN THOUSANDS)\n\n(B)Unless indicated otherwise, all cash interest rates are indexed to 30-day SOFR, which was 4.3% as of March 31, 2025. If applicable, paid-in-kind interest rates are noted separately from the cash interest rate. Certain securities are subject to an interest rate floor. The cash interest rate is the greater of the floor or reference rate plus a spread. Due dates represent the contractual maturity date.\n\n(C)Security is non-income producing.\n\n(D)Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of March 31, 2025.\n\n(E)Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the FASB ASC 820 fair value hierarchy. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.\n\n(F)Where applicable, aggregates all shares of a class of stock owned without regard to specific series owned within such class (some series of which may or may not be voting shares) or aggregates all warrants to purchase shares of a class of stock owned without regard to specific series of such class of stock such warrants allow us to purchase.\n\n(G)Debt security is on non-accrual status.\n\n(H)Represents the principal balance, presented in thousands, for debt investments, the cash balance, presented in thousands, for cash equivalents, and the number of shares/units held for equity investments. Warrants are represented as a percentage of ownership, as applicable.\n\n(I)Fair value was based on internal yield analysis or on estimates of value submitted by a third-party valuation firm. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.\n\n(J)Fair value was based on the total enterprise value of the portfolio company, which is generally allocated to the portfolio company’s securities in order of their relative priority in the capital structure. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.\n\n(K)One or more of our affiliated funds, Gladstone Capital Corporation and Gladstone Alternative, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S. Securities and Exchange Commission.\n\n(L)Non-Control/Non-Affiliate investments, as defined by the 1940 Act, are those that are neither Control nor Affiliate investments and in which we own less than 5.0% of the issued and outstanding voting securities.\n\n(M)Affiliate investments, as defined by the 1940 Act, are those that are not Control investments and in which we own, with the power to vote, between and inclusive of 5.0% and 25.0% of the issued and outstanding voting securities.\n\n(N)Control investments, as defined by the 1940 Act, are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.\n\n(O)Fair value was based on net asset value, provided by the underlying fund, as a practical expedient.\n\n(P)This portfolio company is headquartered in Ontario, Canada.\n\n(Q)Cumulative gross unrealized appreciation for federal income tax purposes is $183.3 million; cumulative gross unrealized depreciation for federal income tax purposes is $144.9 million. Cumulative net unrealized appreciation is $38.5 million, based on a tax cost of $940.9 million.\n\n(R)Valued using Level 1 inputs within the FASB ASC 820 fair value hierarchy. Refer to Note 3—Investments in the accompanying Notes to Consolidated Financial Statements for additional information.\n\nTHE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.\n\n90\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nGLADSTONE INVESTMENT CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nMARCH 31, 2026\n\n(DOLLAR AMOUNTS IN TABLES IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA AND AS OTHERWISE INDICATED)\n\nNOTE 1.    ORGANIZATION\n\nGladstone Investment Corporation (“Gladstone Investment”) was incorporated under the General Corporation Law of the State of Delaware on February 18, 2005, and completed an initial public offering on June 22, 2005. The terms “the Company,” “we,” “our” and “us” all refer to Gladstone Investment and its consolidated subsidiary. We are an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and are applying the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies” (“ASC 946”). In addition, we have elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”). We were established for the purpose of investing in debt and equity securities of established private businesses in the United States (“U.S.”). Debt investments primarily take the form of two types of loans: secured first lien loans and secured second lien loans. Equity investments primarily take the form of preferred or common equity (or warrants or options to acquire the foregoing), often in connection with buyouts and other recapitalizations. Our investment objectives are to: (i) achieve and grow current income by investing in debt securities of established businesses that we believe will provide stable earnings and cash flow to pay expenses, make principal and interest payments on our outstanding indebtedness and make distributions to stockholders that grow over time, and (ii) provide our stockholders with long-term capital appreciation in the value of our assets by investing in equity securities of established businesses, generally in combination with the aforementioned debt securities, that we believe can grow over time to permit us to sell our equity investments for capital gains. We intend that our investment portfolio over time will consist of approximately 70.0% in debt investments and 30.0% in equity investments, at cost. As of March 31, 2026, our investment portfolio was comprised of 70.8% in debt investments and 29.2% in equity investments, at cost.\n\nGladstone Business Investment, LLC (“Business Investment”), a wholly-owned subsidiary of ours, was established on August 11, 2006 for the sole purpose of holding certain investments pledged as collateral under our line of credit. The financial statements of Business Investment are consolidated with those of Gladstone Investment.\n\nWe are externally managed by Gladstone Management Corporation (the “Adviser”), an affiliate of ours and a U.S. Securities and Exchange Commission (“SEC”) registered investment adviser, pursuant to an investment advisory and management agreement (the “Advisory Agreement”). Administrative services are provided by Gladstone Administration, LLC (the “Administrator”), an affiliate of ours and the Adviser, pursuant to an administration agreement (the “Administration Agreement”). Refer to Note 4 — Related Party Transactions for more information regarding these arrangements.\n\nOn March 20, 2026, the Board of Directors appointed David Dullum as the Company’s Chief Executive Officer, effective immediately.\n\nNOTE 2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n\nBasis of Presentation\n\nThe Consolidated Financial Statements and these accompanying notes are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and conform to the applicable requirements of Regulation S-X. Management believes it has made all necessary adjustments so that our accompanying Consolidated Financial Statements are presented fairly and that all such adjustments are of a normal recurring nature. Our accompanying Consolidated Financial Statements include our accounts and the accounts of our wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation.\n\nConsolidation\n\nIn accordance with Article 6 of Regulation S-X, we do not consolidate portfolio company investments. Under the investment company rules and regulations pursuant to the American Institute of Certified Public Accountants Audit and Accounting Guide for Investment Companies, codified in ASC 946, we are precluded from consolidating any entity other\n\n91\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nthan another investment company, except that ASC 946 provides for the consolidation of a controlled operating company that provides substantially all of its services to the investment company or its consolidated subsidiaries.\n\nUse of Estimates\n\nPreparing financial statements requires management to make estimates and assumptions that affect the amounts reported in our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements. Actual results may differ from those estimates.\n\nReclassifications\n\nCertain prior period amounts have been reclassified to conform to the current period presentation in the Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements. Reclassifications did not impact net increase (decrease) in net assets resulting from operations, total assets, total liabilities or total net assets, or Consolidated Statements of Changes in Net Assets and Consolidated Statements of Cash Flows classifications.\n\nCash and Cash Equivalents\n\nWe consider all short-term, highly-liquid investments that are both readily convertible to cash and have a maturity of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value. We place our cash with financial institutions, and at times, cash held in cash and restricted cash deposits held at financial institutions, which at times may exceed the Federal Deposit Insurance Corporation insured limit. We seek to mitigate this concentration of credit risk by depositing funds with major financial institutions.\n\nThe following table provides a reconciliation of cash, cash equivalents and restricted cash in the Consolidated Statements of Assets and Liabilities to the total amount shown at the end of the applicable period in the Consolidated Statements of Cash Flows:\n\nAs of March 31, 2026\n\nAs of March 31, 2025\n\nCash$1,132 $12,944 \n\nCash equivalents25 1,354 \n\nRestricted cash1,228 856 \n\nTotal cash, cash equivalents and restricted cash$2,385 $15,154 \n\nRestricted Cash\n\nRestricted cash is generally cash held in escrow received as part of an investment exit. Restricted cash is carried at cost, which approximates fair value.\n\nClassification of Investments\n\nIn accordance with the provisions of the 1940 Act applicable to BDCs, we classify portfolio investments on our accompanying Consolidated Statements of Assets and Liabilities, Consolidated Statements of Operations, and Consolidated Schedules of Investments into the following categories:\n\n•Non-Control/Non-Affiliate Investments — Non-Control/Non-Affiliate investments are those that are neither control nor affiliate investments and in which we typically own less than 5.0% of the issued and outstanding voting securities;\n\n•Affiliate Investments — Affiliate investments are those that are not Control investments and in which we own, with the power to vote, between and inclusive of 5.0% and 25.0% of the issued and outstanding voting securities; and\n\n•Control Investments — Control investments are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.\n\n92\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nInvestment Valuation Policy\n\nAccounting Recognition\n\nWe record our investments at fair value in accordance with FASB ASC Topic 820, “Fair Value Measurement” (“ASC 820”) and the 1940 Act. Investment transactions are recorded on the trade date. Realized gains or losses are generally measured by the difference between the net proceeds from the repayment or sale and the cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, and include investments charged off during the period, net of recoveries. Unrealized appreciation or depreciation primarily reflects the change in investment fair values, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.\n\nBoard Responsibility\n\nOur board of directors (the “Board of Directors”) has approved investment valuation policies and procedures pursuant to Rule 2a-5 under the 1940 Act (the “Policy”) and designated the Adviser to serve as the Board of Directors’ valuation designee (“Valuation Designee”) under the 1940 Act.\n\nIn accordance with the 1940 Act, our Board of Directors has the ultimate responsibility for reviewing the good faith fair value determination of our investments for which market quotations are not readily available based on our Policy and for overseeing the Valuation Designee. Such review and oversight includes receiving written fair value determinations and supporting materials provided by the Valuation Designee and with the oversight by the Company's chief valuation officer (collectively, the “Valuation Team”). The Valuation Committee of our Board of Directors (comprised entirely of independent directors) meets to review the valuation determinations and supporting materials, discusses the information provided by the Valuation Team, determines whether the Valuation Team has followed the Policy, and reviews other facts and circumstances, including current valuation risks, conflicts of interest, material valuation matters, appropriateness of valuation methodologies, back-testing results, price challenges/overrides, and ongoing monitoring and oversight of pricing services. After the Valuation Committee concludes its meeting, it and the chief valuation officer, representing the Valuation Designee, present the Valuation Committee’s findings on the Valuation Designee's determinations to the entire Board of Directors so that the full Board of Directors may review the Valuation Designee's determined fair values of such investments in accordance with the Policy.\n\nThere is no single standard for determining fair value (especially for privately-held businesses), as fair value depends upon the specific facts and circumstances of each individual investment. In determining the fair value of our investments, the Valuation Team, led by the chief valuation officer, uses the Policy, and each quarter the Valuation Committee and Board of Directors review the Policy to determine if changes thereto are advisable and whether the Valuation Team has applied the Policy consistently.\n\nUse of Third-Party Valuation Firms\n\nThe Valuation Team engages third party valuation firms to provide independent assessments of fair value of certain of our investments.\n\nA third-party valuation firm generally provides estimates of fair value on our debt investments. The Valuation Team generally assigns the third-party valuation firm’s estimates of fair value to our debt investments where we do not have the ability to effectuate a sale of the applicable portfolio company. The Valuation Team corroborates the third-party valuation firm’s estimates of fair value using one or more of the valuation techniques discussed below. The Valuation Team’s estimate of value on a specific debt investment may significantly differ from the third-party valuation firm’s. When this occurs, our Valuation Committee and Board of Directors review whether the Valuation Team has followed the Policy and the Valuation Committee reviews whether the Valuation Designee’s determined fair value is reasonable in light of the Policy and other relevant facts and circumstances.\n\nWe may engage other independent valuation firms to provide earnings multiple ranges, as well as other information, and evaluate such information for incorporation into the total enterprise value (“TEV”) of certain of our investments. Generally, at least once per year, we engage an independent valuation firm to value or review the valuation of each of our significant equity investments, which includes providing the information noted above. The Valuation Team evaluates such information for incorporation into our TEV, including review of all inputs provided by the independent valuation firm. The Valuation\n\n93\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nTeam then presents a determination to our Valuation Committee as to the fair value. Our Valuation Committee reviews the determined fair value and whether it is reasonable in light of the Policy and other relevant facts and circumstances.\n\nValuation Techniques\n\nIn accordance with ASC 820, the Valuation Team uses the following techniques when valuing our investment portfolio:\n\n•Total Enterprise Value — In determining the fair value using a TEV, the Valuation Team first calculates the TEV of the portfolio company by incorporating some or all of the following factors: the portfolio company’s ability to make payments and other specific portfolio company attributes; the earnings of the portfolio company (the trailing or projected twelve month revenue or earnings before interest, taxes, depreciation and amortization (“EBITDA”)); EBITDA multiples obtained from our indexing methodology whereby the original transaction EBITDA multiple at the time of our closing is indexed to a general subset of comparable disclosed transactions and EBITDA multiples from recent sales to third parties of similar securities in similar industries; a comparison to publicly traded securities in similar industries; and other pertinent factors. The Valuation Team generally reviews industry statistics and may use outside experts when gathering this information. Once the TEV is determined for a portfolio company, the Valuation Team generally allocates the TEV to the portfolio company’s securities based on the facts and circumstances of the securities, which typically results in the allocation of fair value to securities based on the order of their relative priority in the capital structure. Generally, the Valuation Team uses TEV to value our equity investments and, in the circumstances where we have the ability to effectuate a sale of a portfolio company, our debt investments. When there is equity value or sufficient TEV to cover the principal balance of our debt securities, the fair value of our senior secured debt generally equals or approximates cost.\n\nTEV is primarily calculated using EBITDA and EBITDA multiples; however, TEV may also be calculated using revenue and revenue multiples or a discounted cash flow (“DCF”) analysis whereby future expected cash flows of the portfolio company are discounted to determine a net present value using estimated risk-adjusted discount rates, which incorporate adjustments for nonperformance and liquidity risks.\n\n•Yield Analysis — The Valuation Team generally determines the fair value of our debt investments for which we do not have the ability to effectuate a sale of the applicable portfolio company using the yield analysis, which includes a DCF calculation and assumptions that the Valuation Team believes market participants would use, including: estimated remaining life, current market yield, current leverage, and interest rate spreads. This technique develops a modified discount rate that incorporates risk premiums including, among other things, increased probability of default, increased loss upon default, and increased liquidity risk. Generally, the Valuation Team uses the yield analysis to corroborate both estimates of value provided by a third-party valuation firm and market quotes.\n\n•Market Quotes — For our investments for which a limited market exists, we generally base fair value on readily available and reliable market quotations, which are corroborated by the Valuation Team (generally by using the yield analysis described above). In addition, the Valuation Team assesses trading activity for similar investments and evaluates variances in quotations and other market insights to determine if any available quoted prices are reliable. Typically, the Valuation Team uses the lower indicative bid price in the bid-to-ask price range obtained from the respective originating syndication agent’s trading desk on or near the valuation date. The Valuation Team may take further steps to consider additional information to validate that price in accordance with the Policy. For securities that are publicly traded, we generally base fair value on the closing market price of the securities we hold as of the reporting date. For restricted securities that are publicly traded, we generally base fair value on the closing market price of the securities we hold as of the reporting date less a discount for the restriction, which includes consideration of the nature and term to expiration of the restriction and the lack of marketability of the security.\n\n•Investments in Funds — For equity investments in other funds for which we cannot effectuate a sale of the fund, the Valuation Team generally determines the fair value of our invested capital at the net asset value (“NAV”) provided by the fund. ASC 820 permits an entity holding investments in certain entities that either are investment companies, or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment.\n\n94\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nIn addition to the valuation techniques listed above, the Valuation Team may also consider other factors when determining the fair value of our investments, including: the nature and realizable value of the collateral, including external parties’ guaranties, any relevant offers or letters of intent to acquire the portfolio company, timing of expected loan repayments, and the markets in which the portfolio company operates.\n\nFair value measurements of our investments may involve subjective judgments and estimates and, due to the uncertainty inherent in valuing these securities, the determinations of fair value may fluctuate from period to period and may differ materially from the values that could be obtained if a ready market for these securities existed. Our NAV could be materially affected if the determinations regarding the fair value of our investments are materially different from the values that we ultimately realize upon our disposal of such securities. Additionally, changes in the market environment and other events that may occur over the life of the investment may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which it is recorded.\n\nRefer to Note 3 — Investments for additional information regarding fair value measurements and our application of ASC 820.\n\nRealized Gain or Loss and Unrealized Appreciation or Depreciation of Portfolio Investments\n\nGains or losses on the sale of investments are calculated by using the specific identification method. A realized gain or loss is recognized on the trade date, typically when an investment is disposed of, and is computed as the difference between the cost basis of the investment on the disposition date and the net proceeds received from such disposition. Unrealized appreciation or depreciation reflects the difference between the fair value of the investment and the cost basis of such investment. We determine the fair value of each individual investment each reporting period and record changes in fair value as unrealized appreciation or depreciation in our accompanying Consolidated Statement of Operations.\n\nRevenue Recognition\n\nInterest Income Recognition\n\nInterest income, adjusted for amortization of premiums, amendment fees, and acquisition costs and the accretion of discounts, is recorded on the accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 90 days or more past due, or if our qualitative assessment indicates that the debtor is unable to service its debt or other obligations, we will place the loan on non-accrual status and cease recognizing interest income on that loan until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, we remain contractually entitled to this interest. Interest payments received on non-accrual loans may be recognized as income or applied to the cost basis, depending upon management’s judgment. Generally, non-accrual loans are restored to accrual status when past-due principal and interest are paid and, in management’s judgment, are likely to remain current, or, due to a restructuring, the interest income is deemed to be collectible. As of March 31, 2026, our loans to B+T Group Acquisition, Inc. (\"B+T\"), Diligent Delivery Systems (\"Diligent\") and Edge Adhesives Holdings, Inc. (\"Edge\") were on non-accrual status, with an aggregate debt cost basis of $40.3 million, or 5.4% of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $9.1 million, or 1.4% of the fair value of all debt investments in our portfolio. As of March 31, 2025, our loans to B+T, Diligent, Edge and J.R. Hobbs Co. – Atlanta, LLC (“J.R. Hobbs”) were on non-accrual status, with an aggregate debt cost basis of $90.2 million, or 13.1% of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $50.9 million, or 8.2% of the fair value of all debt investments in our portfolio.\n\nPaid-in-kind (“PIK”) interest, computed at the contractual rate specified in the loan agreement, is added to the principal balance of the loan and recorded as interest income. Thus, the actual collection of PIK income may be deferred until the time of debt principal repayment. As of March 31, 2026 and 2025, we did not have any loans with a PIK interest component.\n\nSuccess Fee Income Recognition\n\nWe record success fees as income when earned, which often occurs upon receipt of cash. Success fees are generally contractually due upon a change of control in a portfolio company, typically resulting from an exit or sale, and are non-recurring.\n\n95\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nDividend Income Recognition\n\nWe accrue dividend income on preferred and common equity securities to the extent that such amounts are expected to be collected and if we have the option to collect such amounts in cash or other consideration.\n\nDeferred Financing and Offering Costs\n\nDeferred financing and offering costs consist of costs incurred to obtain financing, including lender fees, underwriting discounts and commissions, and legal fees. Certain costs associated with our revolving line of credit are deferred and amortized using the straight-line method, which approximates the effective interest method, over the term of the revolving line of credit. Costs associated with the issuance of our notes payable and mandatorily redeemable preferred stock are presented as discounts to the liquidation value of the notes payable and mandatorily redeemable preferred stock and are amortized using the straight-line method, which approximates the effective interest method, over the term of the notes payable and respective series of preferred stock. Refer to Note 5 — Borrowings for further discussion.\n\nRelated Party Fees\n\nWe are party to the Advisory Agreement with the Adviser, which is indirectly owned by our chairman. In accordance with the Advisory Agreement, we pay the Adviser fees as compensation for its services, consisting of a base management fee and an incentive fee. Additionally, we pay the Adviser a loan servicing fee as compensation for its services as servicer under the terms of the Fifth Amended and Restated Credit Agreement dated April 30, 2013, as amended from time to time (the \"Credit Facility\").\n\nWe are also party to the Administration Agreement with the Administrator, which is indirectly owned and controlled by our chairman, whereby we pay separately for administrative services.\n\nRefer to Note 4 — Related Party Transactions for additional information regarding these related party fees and agreements.\n\nFederal Income Taxes\n\nWe intend to continue to maintain our qualification as a RIC under subchapter M of the Code for federal income tax purposes. As a RIC, we generally are not subject to federal income tax on the portion of our taxable income and gains distributed to our stockholders. To maintain our qualification as a RIC, we must maintain our status as a BDC and meet certain source-of-income and asset diversification requirements. In addition, to qualify to be taxed as a RIC, we must generally distribute to stockholders, for each taxable year, at least 90% of our taxable ordinary income plus the excess of our net short-term capital gains over net long-term capital losses (“Investment Company Taxable Income”). Our policy generally is to make distributions to our stockholders in an amount up to 100% of our Investment Company Taxable Income. We intend to continue to make sufficient distributions to qualify as a RIC and to generally limit taxable income, although we may retain some or all of our net long-term capital gains and pay income taxes on such gains. Refer to Note 9— Federal and State Income Taxes for additional information regarding our RIC requirements.\n\nFASB ASC 740, Income Taxes (“ASC 740”), requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authorities. Tax positions not deemed to satisfy the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current fiscal year. We have evaluated the implications of ASC 740 for all open tax years and in all major tax jurisdictions and determined that there is no material impact on our accompanying Consolidated Financial Statements. Our federal income tax returns for fiscal years 2025, 2024 and 2023 remain subject to examination by the Internal Revenue Service (“IRS”). We are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized benefits will change materially in the next twelve months.\n\nIn December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which was issued to enhance the transparency and decision usefulness of income tax disclosures. The new guidance is effective for annual periods beginning after December 15, 2024. We have adopted ASU 2023-09 effective as of March 31, 2026 and concluded the application of this guidance did not have a material on our consolidated financial statements.\n\n96\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nDistributions\n\nDistributions to stockholders are recorded on the ex-dividend date. We are required to distribute at least 90% of our Investment Company Taxable Income for each taxable year as a distribution to our stockholders to maintain our ability to be taxed as a RIC under Subchapter M of the Code. It is our policy to generally pay out as a distribution up to 100% of those amounts. The amount to be paid is determined by our Board of Directors and is based upon management’s estimate of Investment Company Taxable Income, net long-term capital gains, as well as amounts to be distributed in accordance with Section 855(a) of the Code. Based on that estimate, our Board of Directors declares monthly distributions, and supplemental distributions, as applicable, each quarter. At fiscal year-end, we may elect to treat a portion of the first distributions paid after year-end as having been paid in the prior year in accordance with Section 855(a) of the Code. We may retain some or all of our net long-term capital gains, if any, and designate them as deemed distributions, or distribute these capital gains to stockholders in cash. If we elect to retain net long-term capital gains and deem them distributed, each U.S. common stockholder will be treated as if they received a distribution of their pro-rata share of the retained net long-term capital gain and the U.S. federal income tax paid. As a result, each common stockholder will (i) be required to report their pro-rata share of the retained gain on their tax return as long-term capital gain, (ii) receive a refundable tax credit for their pro-rata share of federal income tax paid by us on the retained gain, and (iii) increase the tax basis of their shares of common stock by an amount equal to the deemed distribution less the tax credit. Refer to Note 8 — Distributions to Common Stockholders for further information.\n\nOur common stockholders who hold their shares through our transfer agent, Computershare, Inc. (“Computershare”), have the option to participate in a dividend reinvestment plan offered by Computershare, as the plan agent. This is an “opt in” dividend reinvestment plan, meaning that common stockholders may elect to have their cash distributions automatically reinvested in additional shares of our common stock. Common stockholders who do not so elect will receive their distributions in cash. Any distributions reinvested under the plan will be taxable to a common stockholder to the same extent, and with the same character, as if the common stockholder had received the distribution in cash. The common stockholder will have an adjusted basis in the additional common shares purchased through the plan equal to the dollar amount that would have been received if the U.S. stockholder had received the dividend or distribution in cash. The additional common shares will have a new holding period commencing on the day following the date on which the shares are credited to the common stockholder’s account. Computershare purchases shares in the open market in connection with the obligations under the plan.\n\nSegment Reporting\n\nIn November 2023, the FASB issued Accounting Standards Update 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” (\"ASU 2023-07\") to improve reportable segments disclosure requirements. ASU 2023-07 requires existing annual segment disclosures to also be disclosed on an interim basis and also requires additional disclosures around significant segment expenses and disclosures to identify the title and position of the chief operating decision maker (“CODM”). The standard is effective for fiscal years beginning after December 15, 2023, and interim periods thereafter. We adopted ASU 2023-07 as of March 31, 2025.\n\nOur current business strategy includes one reporting segment which derives investment income from our portfolio companies. Our CODM is our Chief Executive Officer. The CODM assesses performance based on net investment income, net realized and unrealized gains (losses) and net increase (decrease) in net assets resulting from operations, which are reported on the Consolidated Statement of Operations. The expense categories included on the Consolidated Statement of Operations reflect our significant expense categories and are provided to the CODM on a regular basis.\n\nRecent Accounting Pronouncements\n\nIn December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements” (\"ASU 2025-11\"), which improves the navigability of required interim disclosures and clarifies when that guidance is applicable. Additionally, ASU 2025-11 provides additional guidance on what disclosures should be provided in interim reporting periods. ASU 2025-11 is effective for interim reporting periods within annual periods beginning after December 15, 2027. The Company is currently assessing the impact of this guidance; however, the Company does not expect a material impact on our consolidated financial statements.\n\n97\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nIn December 2025, the FASB issued ASU 2025-12, “Codification Improvements” (\"ASU 2025-12\"), which facilitates codification updates for a broad range of topics arising from technical corrections, unintended application of the codification, clarifications, and other minor improvements. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026. The Company is currently assessing the impact of this guidance; however, the Company does not expect a material impact on our consolidated financial statements.\n\nNOTE 3.    INVESTMENTS\n\nFair Value\n\nIn accordance with ASC 820, the fair value of our investments is determined to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the following three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.\n\n•Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical financial instruments in active markets;\n\n•Level 2 — inputs to the valuation methodology include quoted prices for similar financial instruments in active or inactive markets, and inputs that are observable for the financial instrument, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists, or instances where prices vary substantially over time or among brokered market makers; and\n\n•Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are those inputs that reflect assumptions that market participants would use when pricing the financial instrument and can include the Valuation Team’s assumptions based upon the best available information.\n\nWhen a determination is made to classify our investments within Level 3 of the valuation hierarchy, such determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 financial instruments typically include, in addition to the unobservable, or Level 3, inputs, observable inputs (or components that are actively quoted and can be validated to external sources). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Investments in funds measured using NAV as a practical expedient are not categorized within the fair value hierarchy.\n\nAs of March 31, 2026 and 2025, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investment in money market funds, which was valued using Level 1 inputs, and our investment in Gladstone Alternative Income Fund (\"Gladstone Alternative\"), which was valued using NAV as a practical expedient.\n\nWe transfer investments in and out of Level 1, 2 and 3 of the valuation hierarchy as of the beginning balance sheet date, based on changes in the use of observable and unobservable inputs utilized to perform the valuation for the period. There were no transfers in or out of Level 1, 2 and 3 during the years ended March 31, 2026 and 2025, respectively.\n\n98\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nAs of March 31, 2026 and 2025, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:\n\nFair Value Measurements\n\nQuoted Prices in\n\nActive Markets\n\nfor Identical\n\nAssets\n\n(Level 1)\n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\nSignificant\n\nUnobservable\n\nInputs\n\n(Level 3)\nFair Value\n\nAs of March 31, 2026:\n\nSecured first lien debt\n$— $— $570,602 $570,602 \n\nSecured second lien debt\n— — 99,197 99,197 \n\nPreferred equity\n— — \n\n426,949 426,949 \n\nCommon equity/equivalents\n— — \n\n207,495 207,495 \n\nTotal\n$— $— $1,304,243 $1,304,243 \n\nInvestments measured at NAV(A)\n— — — 5,005 \n\nTotal Investments\n$— $— $1,304,243 $1,309,248 \n\nCash equivalents\n25 — — 25 \n\nTotal Investments and Cash Equivalents as of March 31, 2026\n$25 $— $1,304,243 $1,309,273 \n\nFair Value Measurements\n\nQuoted Prices in\n\nActive Markets\n\nfor Identical\n\nAssets\n\n(Level 1)\n\nSignificant\n\nOther\n\nObservable\n\nInputs\n\n(Level 2)\n\nSignificant\n\nUnobservable\n\nInputs\n\n(Level 3)\nFair Value\n\nAs of March 31, 2025:\n\nSecured first lien debt\n$— $— $514,334 $514,334 \n\nSecured second lien debt\n— — 103,580 103,580 \n\nPreferred equity\n— — 302,163 302,163 \n\nCommon equity/equivalents\n— — 54,268 54,268 \n\nTotal\n— — 974,345 974,345 \n\nInvestments measured at NAV(A)\n— — — 4,975 \n\nTotal Investments\n— — 974,345 979,320 \n\nCash equivalents\n1,354 1,354 \n\nTotal Investments and Cash Equivalents as of March 31, 2025\n$1,354 $— $974,345 $980,674 \n\n(A)Includes our investment in Gladstone Alternative as of March 31, 2026 and 2025. Investments that are measured at fair value using NAV as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented elsewhere in this Annual Report.\n\n99\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nThe following table presents our investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of March 31, 2026 and 2025, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:\n\nTotal Recurring Fair Value Measurements\n\nReported in Consolidated Statements\n\nof Assets and Liabilities\n\nValued Using Level 3 Inputs\n\nMarch 31,\n\n20262025\n\nNon-Control/Non-Affiliate Investments\n\nSecured first lien debt\n$374,285 $300,751 \n\nSecured second lien debt\n97,397 92,964 \n\nPreferred equity\n304,782 200,606 \n\nCommon equity/equivalents\n207,495 54,268 \n\nTotal Non-Control/Non-Affiliate Investments\n983,959 648,589 \n\nAffiliate Investments\n\nSecured first lien debt\n195,704 213,240 \n\nSecured second lien debt\n1,800 10,616 \n\nPreferred equity\n122,167 101,557 \n\nCommon equity/equivalents(A)\n— — \n\nTotal Affiliate Investments\n319,671 325,413 \n\nControl Investments\n\nSecured first lien debt\n613 343 \n\nSecured second lien debt\n— — \n\nPreferred equity\n— — \n\nCommon equity/equivalents\n— — \n\nTotal Control Investments\n613 343 \n\nTotal investments at fair value using Level 3 inputs\n$1,304,243 $974,345 \n\n(A)Excludes our investment in Gladstone Alternative as of March 31, 2026 and 2025 with a fair value of $5.0 million and $5.0 million, respectively, which was valued using NAV as a practical expedient.\n\n100\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nIn accordance with ASC 820, the following table provides quantitative information about our investments valued using Level 3 fair value measurements as of March 31, 2026 and 2025. The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements. The weighted-average calculations in the table below are based on the principal balances for all debt-related calculations and on the cost basis for all equity-related calculations for the particular input.\n\nQuantitative Information about Level 3 Fair Value Measurements\n\nFair Value as of\n\nValuation\n\nTechnique/\n\nMethodology\nUnobservable\nInputRange / Weighted-Average as of\n\nMarch 31, 2026March 31, 2025March 31, 2026March 31, 2025\n\nSecured first lien debt$570,602 $514,334 TEVEBITDA multiple\n3.6x – 8.7x /\n\n6.4x\n\n3.7x – 7.9x /\n\n6.0x\n\nEBITDA\n$430 – $28,973 /\n\n$11,991\n\n$1,208 – $25,038 /\n\n$12,162\n\nRevenue multiple\n0.3x – 0.6x /\n\n0.5x\n\n0.3x – 0.6x /\n\n0.4x\n\nRevenue\n$21,768 – $99,974 /\n\n$62,789\n\n$6,690 – $102,791 / $72,303\n\nSecured second lien debt99,197 90,956 TEVEBITDA multiple\n5.0x – 10.3x /\n\n7.6x\n\n6.1x – 7.2x /\n\n6.8x\n\nEBITDA\n$3,000 – $44,315 /\n\n$19,510\n\n$3,637 – $24,234 /\n\n$16,900\n\n— 12,624 Yield AnalysisDiscount RateN/A\n20.7% – 20.7% /\n\n 20.7%\n\nPreferred equity426,949 302,163 TEVEBITDA multiple\n3.6x – 8.7x /\n\n6.4x\n\n3.7x – 7.9x /\n\n6.1x\n\nEBITDA\n$430 – $28,973 /\n\n$9,870\n\n$2,153 – $25,038 /\n\n$11,029\n\nRevenue multiple\n0.3x – 0.6x /\n\n0.4x\n\n0.3x – 0.6x /\n\n0.4x\n\nRevenue\n$21,768 – $99,974 /\n\n$76,364\n\n$6,690 – $102,791 /\n\n$53,604\n\nCommon equity/equivalents\n207,495 54,268 TEVEBITDA multiple\n5.0x – 10.3x /\n\n9.0x\n\n5.5x – 7.2x /\n\n6.8x\n\nEBITDA\n$1,210 – $44,315 /\n\n$32,353\n\n$1,208 – $24,234 /\n\n$18,562\n\nTotal$1,304,243 $974,345 \n\nFair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in discount rates, EBITDA, or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of our investments. Generally, an increase/(decrease) in market yields or discount rates or a (decrease)/increase in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a (decrease)/increase in the fair value of certain of our investments.\n\n101\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nChanges in Level 3 Fair Value Measurements of Investments\n\nThe following tables provide our portfolio’s changes in fair value, broken out by security type, during the years ended March 31, 2026 and 2025 for all investments for which the Adviser determines fair value using unobservable (Level 3) inputs.\n\nFair Value Measurements Using Significant Unobservable Inputs (Level 3)\n\nSecured\nFirst Lien\nDebtSecured\nSecond Lien\nDebtPreferred\nEquityCommon\nEquity/\nEquivalentsTotal\n\nYear ended March 31, 2026:\n\nFair value as of March 31, 2025\n$514,334 $103,580 $302,163 $54,268 $974,345 \n\nTotal gain (loss):\n\nNet realized (loss) gain(A)\n(29,938)— 3,481 — (26,457)\n\nNet unrealized (depreciation)\n\nappreciation(B)\n(3,127)(21,958)68,870 153,227 197,012 \n\nReversal of previously recorded depreciation upon realization(B)\n19,104 — — — 19,104 \n\nNew investments, repayments and settlements(C):\n\nIssuances / originations\n126,516 1,800 45,300 — 173,616 \n\nSettlements / repayments\n(29,896)— — — (29,896)\n\nSales(D)\n— — (3,481)— (3,481)\n\nTransfers(E)\n(26,391)15,775 10,616 — — \n\nFair value as of March 31, 2026\n$570,602 $99,197 $426,949 $207,495 $1,304,243 \n\nSecured\nFirst Lien\nDebtSecured\nSecond Lien\nDebtPreferred\nEquityCommon\nEquity/\nEquivalentsTotal\n\nYear ended March 31, 2025:\n\nFair value as of March 31, 2024\n$474,856 $138,703 $213,480 $93,447 $920,486 \n\nTotal gain (loss):\n\nNet realized (loss) gain(A)\n— — 19,790 43,373 63,163 \n\nNet unrealized (depreciation) appreciation(B)\n(31,122)(733)63,210 5,068 36,423 \n\nReversal of previously recorded depreciation (appreciation) upon realization(B)\n— — (24,334)(38,028)(62,362)\n\nNew investments, repayments and settlements(C):\n\nIssuances / originations\n169,200 400 46,617 — 216,217 \n\nSettlements / repayments\n(98,600)(25,000)— — (123,600)\n\nSales\n— — (26,390)(49,592)(75,982)\n\nTransfers(E)\n— (9,790)9,790 — — \n\nFair value as of March 31, 2025\n$514,334 $103,580 $302,163 $54,268 $974,345 \n\n(A)Included in net realized (loss) gain on investments on our accompanying Consolidated Statements of Operations for the respective years ended March 31, 2026 and 2025.\n\n(B)Included in net unrealized (depreciation) appreciation of investments on our accompanying Consolidated Statements of Operations for the respective years ended March 31, 2026 and 2025.\n\n(C)Includes increases in the cost basis of investments resulting from new portfolio investments, the amortization of discounts, and other non-cash disbursements to portfolio companies, as well as decreases in the cost basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs, and other cost-basis adjustments.\n\n(D)2026: Includes $3.5 million of proceeds from the equity distribution recognized as realized gain from Old World Christmas, Inc.\n\n102\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\n(E)2026: Transfers include (1) secured second lien debt of PSI Molded Plastics, Inc. (\"PSI Molded\") with a total cost basis of $10.6 million, which was converted to preferred equity in June 2025 and (2) secured first lien debt of Horizon Facilities Services, Inc. with a total cost basis of $57.7 million and fair value of $26.4 million, which was converted to secured second lien debt in March 2026.\n\n2025: Transfers represent secured second lien debt of PSI Molded with a total cost basis of $16.4 million and $9.8 million, which was converted to preferred equity in January 2025.\n\nInvestment Concentrations\n\nAs of March 31, 2026, our investment portfolio consisted of investments in 29 portfolio companies located in 20 states and Canada across 16 different industries with an aggregate fair value of approximately $1.3 billion. Our investments in SFEG Holdings, Inc., The E3 Company, LLC, Schylling, Inc., Brunswick Bowling Products, Inc., and Detroit Defense, Inc., represented our five largest portfolio investments at fair value, and collectively comprised $582.6 million, or 44.5%, of our total investment portfolio at fair value as of March 31, 2026.\n\nThe following table summarizes our investments by security type as of March 31, 2026 and 2025:\n\nMarch 31, 2026March 31, 2025\n\nCostFair ValueCostFair Value\n\nSecured first lien debt$593,008 56.3 %$570,602 43.6 %$584,026 62.2 %$514,334 52.5 %\n\nSecured second lien debt152,840 14.5 %99,197 7.6 %103,956 11.1 %103,580 10.6 %\n\nTotal debt745,848 70.8 %669,799 51.2 %687,982 73.3 %617,914 63.1 %\n\nPreferred equity257,403 24.5 %426,949 32.6 %201,487 21.5 %302,163 30.9 %\n\nCommon equity/equivalents49,597 4.7 %212,500 16.2 %49,597 5.2 %59,243 6.0 %\n\nTotal equity/equivalents307,000 29.2 %639,449 48.8 %251,084 26.7 %361,406 36.9 %\n\nTotal investments\n$1,052,848 100.0 %$1,309,248 100.0 %$939,066 100.0 %$979,320 100.0 %\n\nInvestments at fair value consisted of the following industry classifications as of March 31, 2026 and 2025:\n\nMarch 31, 2026March 31, 2025\n\nFair Value\nPercentage of\n\nTotal Investments\nFair ValuePercentage of\nTotal Investments\n\nMachinery (Non-Agriculture, Non-Construction, and Non-Electronic)$258,692 19.8 %$105,432 10.8 %\n\nDiversified/Conglomerate Services189,148 14.4 %170,360 17.4 %\n\nAerospace and Defense174,542 13.4 %107,869 10.9 %\n\nHome and Office Furnishings, Housewares, and Durable Consumer Products166,553 12.7 %159,236 16.3 %\n\nOil and Gas125,605 9.6 %69,589 7.1 %\n\nLeisure, Amusement, Motion Pictures, and Entertainment105,339 8.0 %78,460 8.0 %\n\nBuildings and Real Estate68,987 5.3 %69,320 7.1 %\n\nElectronics62,723 4.8 %71,573 7.2 %\n\nChemicals, Plastics, and Rubber49,715 3.8 %11,612 1.2 %\n\nHealthcare, Education, and Childcare41,630 3.2 %51,501 5.3 %\n\nMining, Steel, Iron and Non-Precious Metals37,713 2.9 %41,010 4.2 %\n\nPrinting and Publishing8,379 0.6 %11,681 1.2 %\n\nTelecommunications7,942 0.6 %7,585 0.8 %\n\nDiversified/Conglomerate Manufacturing6,763 0.5 %6,493 0.7 %\n\nOther < 2.0%5,517 0.4 %17,599 1.8 %\n\nTotal investments\n$1,309,248 100.0 %$979,320 100.0 %\n\n103\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nInvestments at fair value were included in the following geographic regions of the U.S. and Canada as of March 31, 2026 and 2025:\n\nMarch 31, 2026March 31, 2025\n\nLocation\nFair Value\nPercentage of\n\nTotal Investments\nFair Value\nPercentage of\n\nTotal Investments\n\nUnited States\n\nSouth$649,436 49.6 %$317,294 32.4 %\n\nWest227,294 17.3 %222,062 22.7 %\n\nMidwest216,726 16.6 %227,415 23.2 %\n\nNortheast193,837 14.8 %182,669 18.7 %\n\nCanada21,955 1.7 %29,880 3.0 %\n\nTotal investments\n$1,309,248 100.0 %$979,320 100.0 %\n\nThe geographic region indicates the location of the headquarters for our portfolio companies. A portfolio company may have additional business locations or investments in other geographic regions.\n\nInvestment Principal Repayments\n\nThe following table summarizes the contractual principal repayment and maturity of our investment portfolio for the next five fiscal years and thereafter, assuming no voluntary prepayments, as of March 31, 2026:\n\nAmount\n\nFor the fiscal years ending March 31:\n2027$46,490 \n\n2028110,842 \n\n2029291,540 \n\n2030159,506 \n\n2031137,470 \n\nThereafter— \n\nTotal contractual repayments$745,848 \n\nInvestments in equity securities307,000 \n\nTotal cost basis of investments held as of March 31, 2026:\n$1,052,848 \n\nReceivables from Portfolio Companies\n\nReceivables from portfolio companies represent non-recurring costs that we incurred on behalf of portfolio companies. Such receivables, net of any allowance for uncollectible receivables, are included in Other assets, net on our accompanying Consolidated Statements of Assets and Liabilities. We generally maintain an allowance for uncollectible receivables from portfolio companies when the receivable balance becomes 90 days or more past due or if it is determined, based upon management’s judgment, that the portfolio company is unable to pay its obligations. We write-off accounts receivable when we have exhausted collection efforts and have deemed the receivables uncollectible. As of March 31, 2026 and 2025, we had gross receivables from portfolio companies of $2.6 million and $2.3 million, respectively. As of March 31, 2026 and 2025, the allowance for uncollectible receivables was $1.4 million and $1.7 million, respectively.\n\nNOTE 4.    RELATED PARTY TRANSACTIONS\n\nTransactions with the Adviser\n\nWe pay the Adviser certain fees as compensation for its services under the Advisory Agreement, consisting of a base management fee and an incentive fee and a loan servicing fee for the Adviser’s role as servicer pursuant to our Credit Facility, all as described below. Our Board of Directors, including a majority of the directors who are not parties to the Advisory Agreement or interested persons of either party, approved the Advisory Agreement.\n\n104\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nDavid Gladstone (our chairman) serves as chairman, chief executive officer and president of the Adviser, which, as of March 31, 2026, is 100% indirectly owned by Mr. Gladstone. David Dullum (our chief executive officer and president) is also the executive vice president of private equity of the Adviser. Michael LiCalsi, our chief administrative officer, co-general counsel and co-secretary, also serves in the same roles for the Adviser. Erich Hellmold, our co-general counsel and co-secretary, serves in the same roles for the Adviser. John Sateri, our chief investment officer, also serves in the same role for the Adviser.\n\nThe following table summarizes the base management fees, loan servicing fees, incentive fees, and associated non-contractual, unconditional, and irrevocable credits reflected in our accompanying Consolidated Statements of Operations:\n\nYear Ended March 31,\n\n202620252024\n\nAverage total assets subject to base management fee(A)(B)\n$1,141,200 $955,250 $875,000 \n\nMultiplied by annual base management fee of 2.0%\n2.0 %2.0 %2.0 %\n\nBase management fee(C)\n22,824 19,105 17,500 \n\nCredits to fees from Adviser - other(C)\n(5,433)(5,109)(5,596)\n\nNet base management fee\n$17,391 $13,996 $11,904 \n\nLoan servicing fee(C)\n$11,821 $9,636 $9,118 \n\nCredits to base management fee - loan servicing fee(C)\n(11,821)(9,636)(9,118)\n\nNet loan servicing fee\n$— $— $— \n\nIncentive fee – income-based\n$310 $4,820 $8,336 \n\nIncentive fee – capital gains-based(D)\n37,970 7,445 12,711 \n\nTotal incentive fee(C)\n38,280 12,265 21,047 \n\nCredits to fees from Adviser - other(C)\n— — — \n\nNet total incentive fee$38,280 $12,265 $21,047 \n\n(A)Average total assets subject to the base management fee is defined in the Advisory Agreement as total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective periods and adjusted appropriately for any share issuances or repurchases during the periods.\n\n(B)Excludes our investment in Gladstone Alternative valued at the end of the applicable quarters within the respective periods.\n\n(C)Reflected as a line item on our accompanying Consolidated Statements of Operations.\n\n(D)The capital gains-based incentive fees are recorded in accordance with GAAP and do not necessarily reflect amounts contractually due under the terms of the Advisory Agreement.\n\nBase Management Fee\n\nThe base management fee is payable quarterly to the Adviser pursuant to our Advisory Agreement and is assessed at an annual rate of 2.0%, computed on the basis of the value of our average gross assets at the end of the two most recently completed quarters (inclusive of the current quarter), which are total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective period and adjusted appropriately for any share issuances or repurchases during the period.\n\nAdditionally, pursuant to the requirements of the 1940 Act, the Adviser makes available significant managerial assistance to our portfolio companies. The Adviser may also provide other services to our portfolio companies under certain agreements and may receive fees for services other than managerial assistance. Such services may include: (i) assistance obtaining, sourcing or structuring credit facilities, long term loans or additional equity from unaffiliated third parties; (ii) negotiating important contractual financial relationships; (iii) consulting services regarding restructuring of the portfolio company and financial modeling as it relates to raising additional debt and equity capital from unaffiliated third parties; and (iv) taking a primary role in interviewing, vetting, and negotiating employment contracts with candidates in connection with adding and retaining key portfolio company management team members. The Adviser non-contractually, unconditionally, and irrevocably credits 100% of any fees received for such services against the base management fee that we would otherwise be required to pay to the Adviser; however, pursuant to the terms of the Advisory Agreement, a small percentage of certain of such fees, was retained by the Adviser in the form of reimbursement, at cost, for tasks completed\n\n105\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nby personnel of the Adviser, primarily related to the valuation of portfolio companies. For the years ended March 31, 2026, 2025, and 2024, these credits totaled $0.5 million, $0.4 million, and $0.3 million, respectively.\n\nLoan Servicing Fee\n\nThe Adviser also services the loans held by our wholly-owned subsidiary, Business Investment (the borrower under our Credit Facility), in return for which the Adviser receives a 2.0% annual fee based on the monthly aggregate outstanding balance of loans pledged under the Credit Facility. Since Business Investment is a consolidated subsidiary of ours, coupled with the fact that the total base management fee paid to the Adviser pursuant to the Advisory Agreement cannot exceed 2.0% of total assets (less any uninvested cash or cash equivalents resulting from borrowings) during any given calendar year, we treat payment of the loan servicing fee pursuant to the Credit Facility as a pre-payment of the base management fee under the Advisory Agreement. Accordingly, these loan servicing fees are 100% non-contractually, unconditionally, and irrevocably credited back to us by the Adviser.\n\nIncentive Fee\n\nThe incentive fee payable to the Adviser under our Advisory Agreement consists of two parts: an income-based incentive fee and a capital gains-based incentive fee.\n\nThe income-based incentive fee rewards the Adviser if our quarterly net investment income (before giving effect to any incentive fee) exceeds 1.75% of our net assets, which we define as total assets less indebtedness and before taking into account any incentive fees payable or contractually due but not payable during the period, at the end of the immediately preceding calendar quarter, adjusted appropriately for any share issuances or repurchases during the period (the “Hurdle Rate”). The income-based incentive fee with respect to our pre-incentive fee net investment income is payable quarterly to the Adviser and is computed as follows:\n\n•No incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the Hurdle Rate;\n\n•100.0% of our 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% of our net assets, adjusted appropriately for any share issuances or repurchases during the period, in any calendar quarter; and\n\n•20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 2.1875% of our net assets, adjusted appropriately for any share issuances or repurchases during the period, in any calendar quarter.\n\nThe second part of the incentive fee is a capital gains-based incentive fee that is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement, as of the termination date), and equals 20.0% of our realized capital gains, less any realized capital losses and unrealized depreciation, calculated as of the end of the preceding calendar year. The capital gains-based incentive fee payable to the Adviser is calculated based on (i) cumulative aggregate realized capital gains since our inception, less (ii) cumulative aggregate realized capital losses since our inception, less (iii) the entire portfolio’s aggregate unrealized capital depreciation, if any, as of the date of the calculation. If this number is positive at the applicable calculation date, then the capital gains-based incentive fee for such year equals 20.0% of such amount, less the aggregate amount of any capital gains-based incentive fees paid in respect of our portfolio in all prior years. For calculation purposes, cumulative aggregate realized capital gains, if any, equals the sum of the excess between the net sales price of each investment, when sold, and the original cost of such investment since our inception. Cumulative aggregate realized capital losses equals the sum of the deficit between the net sales price of each investment, when sold, and the original cost of such investment since our inception. The entire portfolio’s aggregate unrealized capital depreciation, if any, equals the sum of the deficit between the fair value of each investment security as of the applicable calculation date and the original cost of such investment security. For the year ended March 31, 2026, no capital gains-based incentive fees were contractually due and paid to the Adviser. For the years ended March 31, 2025 and 2024, capital gains-based incentive fees of $4.9 million and $1.1 million, respectively, were contractually due and paid to the Adviser.\n\nIn accordance with GAAP, accrual of the capital gains-based incentive fee is determined as if our investments had been liquidated at their fair values as of the end of the reporting period. Therefore, GAAP requires that the capital gains-based incentive fee accrual consider the aggregate unrealized capital appreciation in the calculation, as a capital gains-based incentive fee would be payable if such unrealized capital appreciation were realized. There can be no assurance that any such unrealized capital appreciation will be realized in the future. Accordingly, a GAAP accrual is calculated at the end of\n\n106\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nthe reporting period based on (i) cumulative aggregate realized capital gains since our inception, plus (ii) the entire portfolio’s aggregate unrealized capital appreciation, if any, less (iii) cumulative aggregate realized capital losses since our inception, less (iv) the entire portfolio’s aggregate unrealized capital depreciation, if any. If such amount is positive at the end of a reporting period, a capital gains-based incentive fee equal to 20.0% of such amount, less the aggregate amount of capital gains-based incentive fees accrued in all prior years, is recorded, regardless of whether such amount is contractually due under the terms of the Advisory Agreement. If such amount is negative, then there is no accrual for such period and prior period accruals are reversed, as appropriate. During the years ended March 31, 2026, 2025 and 2024, we recorded capital gains-based incentive fees of $38.0 million, $7.4 million and $12.7 million, respectively.\n\nTransactions with the Administrator\n\nWe reimburse the Administrator pursuant to the Administration Agreement for our allocable portion of the Administrator’s expenses incurred while performing services to us, which are primarily rent and salaries and benefits expenses of the Administrator’s employees, including, our chief financial officer and treasurer, chief valuation officer, chief compliance officer, chief administrative officer and co-general counsels and co-secretaries, and their respective staffs. David Gladstone (our chairman) serves as a member of the board of managers and chief executive officer of the Administrator, which is 100% indirectly owned and controlled by Mr. Gladstone. Mr. LiCalsi, our chief administrative officer, co-general counsel and co-secretary, also serves in the same roles for the Administrator (in addition to serving as president of the Administrator). Mr. Hellmold, our co-general counsel and co-secretary, also serves in the same roles for the Administrator.\n\nOur allocable portion of the Administrator’s expenses is generally derived by multiplying the Administrator’s total expenses by the approximate percentage of time during the current quarter the Administrator’s employees performed services for us in relation to their time spent performing services for all companies serviced by the Administrator. On July 10, 2025, our Board of Directors, including a majority of the directors who are not parties to the Administration Agreement or interested persons of either party, approved the annual renewal of the Administration Agreement through August 31, 2026. For the years ended March 31, 2026, 2025 and 2024, administration fees were $2.0 million, $1.9 million and $1.8 million, respectively.\n\nTransactions with Gladstone Securities, LLC\n\nGladstone Securities, LLC (“Gladstone Securities”) is a privately held broker dealer registered with the Financial Industry Regulatory Authority and insured by the Securities Investor Protection Corporation. Gladstone Securities is an affiliate of ours, as its parent company is 100% indirectly owned and controlled by David Gladstone, our chairman. Mr. Gladstone also serves on the board of managers of Gladstone Securities.\n\nFrom time to time, Gladstone Securities provides services, such as investment banking and due diligence services, to certain of our portfolio companies, for which it receives a fee. Any such fees paid by portfolio companies to Gladstone Securities do not impact the fees we pay to the Adviser or the non-contractual, unconditional, and irrevocable credits against the base management fee. During the years ended March 31, 2026, 2025, and 2024, the fees received by Gladstone Securities from our portfolio companies totaled $1.6 million, $2.0 million, and $0.3 million, respectively.\n\nInvestment in Affiliated Fund\n\nIn December 2024, we invested in Gladstone Alternative, one of our affiliated funds, that is a registered, non-diversified, closed-end management investment company that operates as an interval fund. The fair value of the investment in Gladstone Alternative is excluded from the average total assets subject to base management fee for the purposes of calculating the base management fee we pay to the Adviser.\n\n107\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nRelated Party Fees Due\n\nAmounts due to related parties on our accompanying Consolidated Statements of Assets and Liabilities were as follows:\n\nAs of March 31,\n\n20262025\n\nBase management and loan servicing fee due to Adviser, net of credits\n$2,919 $2,027 \n\nIncentive fee due to Adviser(A)\n77,295 41,663 \n\nOther due to Adviser\n293 126 \n\nTotal fees due to Adviser\n$80,507 $43,817 \n\nFee due to Administrator780 767 \n\nTotal related party fees due$81,287 $44,584 \n\n(A)Includes a capital gains-based incentive fee of $77.3 million and $39.3 million as of March 31, 2026 and 2025, respectively, recorded in accordance with GAAP requirements and which was not contractually due under the terms of the Advisory Agreement. Refer to Note 4 — Related Party Transactions—Transactions with the Adviser—Incentive Fee for additional information, including capital gains-based incentive fee payments made.\n\nCo-investment expenses as of both March 31, 2026 and 2025 were $0.1 million. These amounts are generally settled in the quarter subsequent to being incurred and have been included in Other assets, net on the accompanying Consolidated Statements of Assets and Liabilities as of March 31, 2026 and 2025, respectively.\n\nNOTE 5.    BORROWINGS\n\nRevolving Line of Credit\n\nAs of March 31, 2026, our Credit Facility had a total commitment amount of $300.0 million. The Credit Facility has a revolving period end date of October 30, 2026 and a final maturity date of October 30, 2028 (at which time all principal and interest will be due and payable if the Credit Facility is not extended by the revolving period end date).\n\nAdvances under the Credit Facility generally bear interest at 30-day Term SOFR, subject to a floor of 0.35%, with a SOFR credit spread adjustment of 10 basis points, plus a margin of 3.15% per annum until October 30, 2026, with the margin then increasing to 3.40% for the period from October 30, 2026 to October 30, 2027, and increasing further to 3.65% thereafter. The Credit Facility has an unused commitment fee on the daily unused commitment amount of 0.50% per annum if the daily unused commitment amount is less than or equal to 50% of the total commitment amount, 0.75% per annum if the daily unused commitment amount is greater than 50% but less than or equal to 65% of the total commitment amount, and 1.00% per annum if the daily unused commitment amount is greater than 65% of the total commitment amount.\n\nThe following tables summarize noteworthy information related to our Credit Facility:\n\nAs of March 31,\n\n20262025\n\nCommitment amount$300,000 $270,000 \n\nBorrowings outstanding at cost$23,900 $— \n\nAvailability(A)\n$276,100 $270,000 \n\nFor the Years Ended March 31\n\n202620252024\n\nWeighted-average borrowings outstanding\n$76,238 $60,305 $60,980 \n\nWeighted-average interest rate(B)\n9.9 %10.6 %10.1 %\n\nCommitment (unused) fees incurred$1,863 $1,400 $986 \n\n(A)Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of $276.1 million and $270.0 million as of March 31, 2026 and 2025, respectively.\n\n(B)Excludes the impact of deferred financing costs and includes unused commitment fees.\n\n108\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nInterest is payable monthly during the term of our Credit Facility. Available borrowings are subject to various constraints and applicable advance rates, which are generally based on the size, characteristics, and quality of the collateral pledged by Business Investment. Our Credit Facility also requires that any interest and principal payments on pledged loans be remitted directly by the borrower into a lockbox account with KeyBank. KeyBank is also the trustee of the account and generally remits the collected funds to us once a month. Amounts collected in the lockbox account with KeyBank are presented as Due from administrative agent on the accompanying Consolidated Statements of Assets and Liabilities.\n\nAmong other things, our Credit Facility contains a performance guaranty that requires us to maintain (i) a minimum net worth of the greater of $210.0 million or $210.0 million plus 50% of all equity and subordinated debt raised, minus 50% of any equity or subordinated debt redeemed or retired after November 16, 2016, which equated to $476.6 million as of March 31, 2026; (ii) asset coverage with respect to senior securities representing indebtedness of at least 150% (or such percentage as may be set forth in Section 18 of the 1940 Act, as modified by Section 61 of the 1940 Act); and (iii) our status as a BDC under the 1940 Act and as a RIC under the Code. As of March 31, 2026, and as defined in the performance guaranty of our Credit Facility, we had a net worth of $1.2 billion, asset coverage on our senior securities representing indebtedness of 213.8%, calculated in compliance with the requirements of Sections 18 and 61 of the 1940 Act, and an active status as a BDC and RIC. As of March 31, 2026, we were in compliance with all covenants under our Credit Facility.\n\nFair Value\n\nWe elected to apply the fair value option of ASC Topic 825, “Financial Instruments,” to the Credit Facility, which was consistent with our application of ASC 820 to our investments. Generally, the fair value of our Credit Facility is determined using a yield analysis, which includes a DCF calculation and also takes into account the assumptions the Valuation Team believes market participants would use, including the estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date. At March 31, 2026, the discount rate used to determine the fair value of our Credit Facility was 30-day Term SOFR, with a 0.35% floor, plus a margin of 2.90% per annum, plus an unused commitment fee of 1.0%. At March 31, 2025, the discount rate used to determine the fair value of our Credit Facility was 30-day Term SOFR, with a 0.35% floor, plus a margin of 3.25% per annum, plus an unused commitment fee of 1.0%. Generally, an increase or decrease in the discount rate used in the DCF calculation may result in a corresponding decrease or increase, respectively, in the fair value of our Credit Facility. At each of March 31, 2026 and 2025, our Credit Facility was valued using Level 3 inputs and any changes in its fair value are recorded in Net unrealized appreciation (depreciation) of other on our accompanying Consolidated Statements of Operations.\n\nThe following tables provide relevant information and disclosures about our Credit Facility as of and for the years ended March 31, 2026 and 2025, as required by ASC 820:\n\nLevel 3 – Borrowings\n\nRecurring Fair Value Measurements Reported in\n\nConsolidated Statements of Assets and Liabilities\n\nUsing Significant Unobservable Inputs (Level 3)\n\nAs of March 31,\n\n20262025\n\nCredit Facility\n$23,946 $— \n\n109\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nFair Value Measurements of Borrowings Using Significant Unobservable Inputs (Level 3)\n\nReported in Consolidated Statements of Assets and Liabilities\n\nCredit Facility\n\nYear ended March 31, 2026:\n\nFair value at March 31, 2025\n$— \n\nBorrowings\n295,400 \n\nRepayments\n(271,500)\n\nUnrealized appreciation46 \n\nFair value at March 31, 2026\n$23,946 \n\nYear ended March 31, 2025:\n\nFair value at March 31, 2024\n$67,000 \n\nBorrowings\n214,100 \n\nRepayments(281,100)\n\nUnrealized depreciation\n— \n\nFair value at March 31, 2025\n$— \n\nThe fair value of the collateral under our Credit Facility was $1.2 billion and $764.7 million as of March 31, 2026 and 2025, respectively.\n\nNotes Payable\n\n5.00% Notes due 2026\n\nIn March 2021, we completed a public offering of 5.00% Notes due 2026 with an aggregate principal amount of $127.9 million (the “5.00% 2026 Notes”), which resulted in net proceeds of approximately $123.8 million after deducting underwriting discounts, commissions and offering costs borne by us. The 5.00% 2026 Notes were traded under the ticker symbol “GAINN” on the Nasdaq Global Select Market (“Nasdaq”). On May 1, 2026, we repaid the 5.00% 2026 Notes with an aggregate principal amount outstanding of $127.9 million at maturity.\n\nThe 5.00% 2026 Notes were recorded at the aggregate principal amount, less underwriting discounts, commissions, and offering costs, on our accompanying Consolidated Statements of Assets and Liabilities. Total underwriting discounts, commissions, and offering costs related to this offering were $4.1 million, which were recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and were being amortized over the period ended May 1, 2026, the maturity date.\n\n4.875% Notes due 2028\n\nIn August 2021, we completed a public offering of 4.875% Notes due 2028 with an aggregate principal amount of $134.6 million (the “4.875% 2028 Notes”), which resulted in net proceeds of approximately $131.3 million after deducting underwriting discounts, commissions and offering costs borne by us. The 4.875% 2028 Notes are traded under the ticker symbol “GAINZ” on Nasdaq. The 4.875% 2028 Notes will mature on November 1, 2028 and may be redeemed in whole or in part at any time or from time to time at the Company's option. The 4.875% 2028 Notes bear interest at a rate of 4.875% per year, which is payable quarterly in arrears.\n\nThe indenture relating to the 4.875% 2028 Notes contains certain covenants, including (i) an inability to incur additional debt or issue additional debt or preferred securities unless the Company’s asset coverage meets the threshold specified in the 1940 Act after such borrowing, (ii) an inability to declare any dividend or distribution (except a dividend payable in our stock) on a class of our capital stock or to purchase shares of our capital stock unless the Company’s asset coverage meets the threshold specified in the 1940 Act at the time of (and giving effect to) such declaration or purchase, and (iii) if, at any time, we are not subject to the reporting requirements of the Exchange Act, we will provide the holders of the 4.875% 2028 Notes, and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.\n\n110\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nThe 4.875% 2028 Notes are recorded at the aggregate principal amount, less underwriting discounts, commissions, and offering costs, on our accompanying Consolidated Statements of Assets and Liabilities. Total underwriting discounts, commissions, and offering costs related to this offering were $3.3 million, which have been recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and are being amortized over the period ending November 1, 2028, the maturity date.\n\n8.00% Notes due 2028\n\nIn May 2023, we completed a public offering of 8.00% Notes due 2028 with an aggregate principal amount of $74.8 million (the “8.00% 2028 Notes”), which resulted in net proceeds of approximately $72.3 million after deducting underwriting discounts, commissions and offering costs borne by us. On December 16, 2025, we voluntarily redeemed 100% of the issued and outstanding 8.00% 2028 Notes. The 8.00% 2028 Notes would have otherwise matured on August 1, 2028. We incurred a loss on extinguishment of debt of $1.3 million, which was recorded in Realized loss on other in our accompanying Consolidated Statements of Operations and which was primarily comprised of unamortized deferred offering costs at the time of redemption.\n\n7.875% Notes due 2030\n\nIn December 2024, we completed a public offering of 7.875% Notes due 2030 with an aggregate principal amount of $126.5 million (the \"7.875% 2030 Notes\"), which resulted in net proceeds of approximately $122.4 million after deducting underwriting discounts, commissions and offering costs borne by us. The 7.875% 2030 Notes are traded under the ticker symbol “GAINI” on Nasdaq. The 7.875% 2030 Notes will mature on February 1, 2030 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 February 1, 2027. The 7.875% 2030 Notes bear interest at a rate of 7.875% per year, payable quarterly in arrears.\n\nThe indenture relating to the 7.875% 2030 Notes contains certain covenants, including (i) an inability to incur additional debt or issue additional debt or preferred securities unless the Company’s asset coverage meets the threshold specified in the 1940 Act after such borrowing, (ii) an inability to declare any dividend or distribution (except a dividend payable in our stock) on a class of our capital stock or to purchase shares of our capital stock unless the Company’s asset coverage meets the threshold specified in the 1940 Act at the time of (and giving effect to) such declaration or purchase, and (iii) if, at any time, we are not subject to the reporting requirements of the Exchange Act, we will provide the holders of the 7.875% 2030 Notes and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.\n\nThe 7.875% 2030 Notes are recorded at the aggregate principal amount, less underwriting discounts, commissions, and offering costs, on our accompanying Consolidated Statements of Assets and Liabilities. Total underwriting discounts, commissions, and offering costs related to this offering were $4.1 million, which have been recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and are being amortized over the period ending February 1, 2030, the maturity date.\n\n6.875% Notes due 2028\n\nIn November 2025, we completed an offering of 6.875% Notes due 2028 with an aggregate principal amount of $60.0 million (the \"6.875% 2028 Notes\"), which resulted in net proceeds of approximately $58.8 million after deducting underwriting discounts, commissions and offering costs borne by us. The 6.875% 2028 Notes will mature on November 1, 2028 and may be redeemed in whole or in part at any time prior to August 1, 2028 at par plus a \"make-whole\" premium and thereafter at par plus accrued and unpaid interest thereon to the redemption date. The 6.875% 2028 Notes bear interest at a rate of 6.875% per year, payable semi-annually in arrears.\n\nThe indenture relating to the 6.875% 2028 Notes contains certain covenants, including (i) an inability to incur additional debt or issue additional debt or preferred securities unless the Company’s asset coverage meets the threshold specified in the 1940 Act after such borrowing, (ii) an inability to declare any dividend or distribution (except a dividend payable in our stock) on a class of our capital stock or to purchase shares of our capital stock unless the Company’s asset coverage meets the threshold specified in the 1940 Act at the time of (and giving effect to) such declaration or purchase, and (iii) if, at any time, we are not subject to the reporting requirements of the Exchange Act, we will provide the holders of the 6.875% 2028 Notes and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.\n\n111\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nThe 6.875% 2028 Notes are recorded at the aggregate principal amount, less underwriting discounts, commissions, and offering costs, on our accompanying Consolidated Statements of Assets and Liabilities. Total underwriting discounts, commissions, and offering costs related to this offering were $1.2 million, which have been recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and are being amortized over the period ending November 1, 2028, the maturity date.\n\n7.125% Notes due 2031\n\nIn February 2026, we completed a public offering of 7.125% Notes due 2031 with an aggregate principal amount of $100.0 million (the \"7.125% 2031 Notes\"), which resulted in net proceeds of approximately $96.9 million after deducting underwriting discounts, commissions and offering costs borne by us. The 7.125% 2031 Notes are traded under the ticker symbol “GAING” on Nasdaq. The 7.125% 2031 Notes will mature on May 1, 2031 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 May 1, 2028. The 7.125% 2031 Notes bear interest at a rate of 7.125% per year, payable quarterly in arrears.\n\nThe indenture relating to the 7.125% 2031 Notes contains certain covenants, including (i) an inability to incur additional debt or issue additional debt or preferred securities unless the Company’s asset coverage meets the threshold specified in the 1940 Act after such borrowing, (ii) an inability to declare any dividend or distribution (except a dividend payable in our stock) on a class of our capital stock or to purchase shares of our capital stock unless the Company’s asset coverage meets the threshold specified in the 1940 Act at the time of (and giving effect to) such declaration or purchase, and (iii) if, at any time, we are not subject to the reporting requirements of the Exchange Act, we will provide the holders of the 7.125% 2031 Notes and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.\n\nThe 7.125% 2031 Notes are recorded at the aggregate principal amount, less underwriting discounts, commissions, and offering costs, on our accompanying Consolidated Statements of Assets and Liabilities. Total underwriting discounts, commissions, and offering costs related to this offering were $3.1 million, which have been recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and are being amortized over the period ending May 1, 2031, the maturity date.\n\n112\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nThe following tables summarize our 5.00% 2026 Notes, 4.875% 2028 Notes, 6.875% 2028 Notes, 8.00% 2028 Notes, 7.875% 2030 Notes and 7.125% 2031 Notes as of March 31, 2026 and 2025:\n\nAs of March 31, 2026:\n\nDescriptionTicker\nSymbolDate Issued\nMaturity Date(A)\nInterest\nRateNotes\nOutstandingPrincipal\nAmount per\nNoteAggregate\nPrincipal Amount\n\n5.00% 2026 Notes\nGAINNMarch 2, 2021May 1, 20265.00%5,117,500$25.00 $127,938 \n\n4.875% 2028 Notes\nGAINZAugust 18, 2021November 1, 20284.875%5,382,000$25.00 134,550 \n\n7.875% 2030 Notes\nGAINIDecember 17, 2024February 1, 20307.875%5,060,000$25.00 126,500 \n\n6.875% 2028 Notes\nN/ANovember 10, 2025November 1, 20286.875%60,000$1,000.00 60,000 \n\n7.125% 2031 Notes\nGAINGFebruary 18, 2026May 1, 20317.125%4,000,000$25.00 100,000 \n\nNotes payable, gross(B)\n19,619,500548,988 \n\nLess: Unamortized deferred financing costs(8,460)\n\nNotes payable, net(C)\n$540,528 \n\nAs of March 31, 2025:\n\nDescriptionTicker\nSymbolDate Issued\nMaturity Date(A)\nInterest\nRateNotes\nOutstandingPrincipal\nAmount per\nNoteAggregate\nPrincipal Amount\n\n5.00% 2026 Notes\nGAINNMarch 2, 2021May 1, 20265.00%5,117,500$25.00 $127,938 \n\n4.875% 2028 Notes\nGAINZAugust 18, 2021November 1, 20284.875%5,382,000$25.00 134,550 \n\n8.00% 2028 Notes\nGAINLMay 31, 2023August 1, 20288.00%2,990,000$25.00 74,750 \n\n7.875% 2030 Notes\nGAINIDecember 17, 2024February 1, 20307.875%5,060,000$25.00 126,500 \n\nNotes payable, gross(B)\n18,549,500463,738 \n\nLess: Unamortized deferred financing costs(8,029)\n\nNotes payable, net(C)\n$455,709 \n\n(A)As of March 31, 2026, the 5.00% 2026 Notes and the 4.875% 2028 Notes can be redeemed at our option at any time. On May 1, 2026, we repaid the 5.00% 2026 Notes at maturity. The 7.875% 2030 Notes can be redeemed at our option at any time on or after February 1, 2027. The 6.875% 2028 Notes can be redeemed at our option at any time prior to August 1, 2028 at par plus a \"make-whole\" premium and thereafter at par plus accrued and unpaid interest thereon to the redemption date. The 7.125% 2031 Notes can be redeemed at our option at any time on or after May 1, 2028.\n\n(B)As of March 31, 2026 and 2025, asset coverage on our senior securities representing indebtedness, calculated pursuant to Sections 18 and 61 of the 1940 Act, was 213.8% and 204.4%, respectively.\n\n(C)Reflected as a line item on our accompanying Consolidated Statements of Assets and Liabilities.\n\nThe fair value based on the last reported closing prices of the 5.00% 2026 Notes, 4.875% 2028 Notes, 7.875% 2030 Notes and 7.125% 2031 Notes as of March 31, 2026 was $129.0 million, $127.8 million, $128.2 million and $101.3 million, respectively. The fair value based on the last reported closing prices of the 5.00% 2026 Notes, 4.875% 2028 Notes, 8.00% 2028 Notes and 7.875% 2030 Notes as of March 31, 2025 was $127.5 million, $125.0 million, $77.5 million and $128.5 million, respectively. We consider the closing prices of the 5.00% 2026 Notes, 4.875% 2028 Notes, 8.00% 2028 Notes, 7.875% 2030 Notes and 7.125% 2031 Notes to be Level 1 inputs within the ASC 820 hierarchy. Based on a DCF analysis, the fair value of the 6.875% 2028 Notes as of March 31, 2026 was $59.7 million and the discount rate used to determine the fair value of the 6.875% 2028 Notes was 7.075%. We consider the 6.875% 2028 Notes to be Level 3 within the ASC 820 fair value hierarchy.\n\nNOTE 6.    REGISTRATION STATEMENT AND COMMON EQUITY OFFERINGS\n\nRegistration Statement\n\nOn February 28, 2024, we filed a registration statement on Form N-2 (File No. 333-277452), which the SEC declared effective on April 18, 2024. The registration statement permits us to issue, through one or more transactions, up to an aggregate of $450.0 million in securities, consisting of common stock, preferred stock, subscription rights, debt securities, and warrants to purchase common stock, preferred stock, or debt securities, including through concurrent, separate offerings of such securities. As of March 31, 2026, we have the ability to issue up to an additional $119.3 million of the securities registered under the registration statement.\n\n113\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nCommon Equity Offerings\n\nIn May 2024, we entered into equity distribution agreements with Oppenheimer & Co., B. Riley Securities, Inc. and Virtu Americas LLC (collectively, the \"Sales Agents\"), under which we have the ability to issue and sell shares of our common stock, from time to time, through the Sales Agents, having an aggregate offering price of up to $75.0 million in what is commonly referred to as an “at-the-market” program (the “2024 Common Stock ATM Program”). In June 2025, we entered into an equity distribution agreement with M&T Securities, Inc. and entered into amendments to the agreements with Oppenheimer & Co. Inc., B. Riley Securities, Inc. and Virtu Americas LLC to add M&T Securities, Inc. as a Sales Agent for the 2024 Common Stock ATM Program. As of March 31, 2026, we had remaining capacity to sell up to an additional $30.8 million of common stock under the 2024 Common Stock ATM Program.\n\nIn August 2022, we entered into equity distribution agreements with Oppenheimer & Co. and Virtu Americas LLC (each a “2022 Sales Agent”), under which we had the ability to issue and sell shares of our common stock, from time to time, through the 2022 Sales Agents, up to an aggregate offering price of $50.0 million in what is commonly referred to as an “at-the-market” program (“2022 Common Stock ATM Program”). In August 2023, we entered into an equity distribution agreement with B. Riley Securities, Inc. and entered into amendments to the agreements with Oppenheimer & Co. Inc. and Virtu Americas LLC to add B. Riley Securities, Inc. as a 2022 Sales Agent for the 2022 Common Stock ATM Program. We did not sell any shares under the 2022 Common Stock ATM Program, which terminated in connection with our entry into the 2024 Common Stock ATM Program on May 14, 2024, during the year ended March 31, 2025.\n\nDuring the year ended March 31, 2026, we sold 2,984,586 shares of our common stock under the 2024 Common Stock ATM Program, with a weighted-average gross price of $14.12 per share and a weighted-average net price of $13.92 per share after deducting commissions and offering costs borne by us, raising approximately $42.1 million and $41.5 million of gross and net proceeds, respectively. These sales were above our then current NAV per share.\n\nDuring the year ended March 31, 2025, we sold 148,714 shares of our common stock under the 2024 Common Stock ATM Program, with a weighted-average gross price of $13.64 per share and a weighted-average net price of $13.48 per share after deducting commissions and offering costs borne by us, raising approximately $2.0 million and $2.0 million of gross and net proceeds, respectively. These sales were above our then current NAV per share.\n\nDuring the year ended March 31, 2024, we sold 3,097,162 shares of our common stock under the 2022 Common Stock ATM Program, with a weighted-average gross price of $14.37 per share and a weighted-average net price of $14.12 per share after deducting commissions and offering costs borne by us, raising approximately $44.5 million and $43.7 million of gross and net proceeds, respectively. These sales were above our then current NAV per share.\n\nNOTE 7.    NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER WEIGHTED-AVERAGE COMMON SHARE\n\nThe following table sets forth the computation of basic and diluted net increase in net assets resulting from operations per weighted-average common share for the years ended March 31, 2026, 2025, and 2024:\n\nYear Ended March 31,\n\n202620252024\n\nNumerator: net increase in net assets resulting from operations\n$184,753 $65,319 $85,305 \n\nDenominator: basic and diluted weighted-average common shares\n38,712,611 36,735,218 34,466,724 \n\nBasic and diluted net increase in net assets resulting from operations per weighted-average common share\n$4.77 $1.78 $2.47 \n\n114\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nNOTE 8.    DISTRIBUTIONS TO COMMON STOCKHOLDERS\n\nTo qualify to be taxed as a RIC under Subchapter M of the Code, we must generally distribute to our stockholders, for each taxable year, at least 90% of our Investment Company Taxable Income. The amount to be paid out as distributions to our stockholders is determined by our Board of Directors and is based upon management’s estimate of Investment Company Taxable Income and net long-term capital gains, as well as amounts to be distributed in accordance with Section 855(a) of the Code. Based on that estimate, our Board of Directors declares monthly distributions, and supplemental distributions, as appropriate, to stockholders each quarter and deemed distributions of long-term capital gains annually as of the end of the fiscal year, as applicable.\n\nThe U.S. federal income tax characteristics of cash distributions paid to our common stockholders generally are reported to stockholders on IRS Form 1099 after the end of each calendar year. Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of cash distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. The tax characterization of cash distributions paid to common stockholders during the calendar year ended December 31, 2025 was 51.3% from ordinary income and 48.7% from capital gains. The tax characterization of cash distributions paid to common stockholders during the calendar year ended December 31, 2024 was 52.9% from ordinary income and 47.1% from capital gains.\n\nWe paid the following cash distributions to our common stockholders for the years ended March 31, 2026, 2025 and 2024.\n\nFor the Year Ended March 31, 2026:\n\nDeclaration Date\nRecord DatePayment DateDistribution\nper Common Share\n\nApril 8, 2025April 21, 2025April 30, 2025$0.08 \n\nApril 8, 2025May 21, 2025May 30, 20250.08 \n\nApril 8, 2025June 4, 2025June 13, 20250.54 \n(A)\n\nApril 8, 2025June 20, 2025June 30, 20250.08 \n\nJuly 10, 2025July 21, 2025July 31, 20250.08 \n\nJuly 10, 2025August 20, 2025August 29, 20250.08 \n\nJuly 10, 2025September 22, 2025September 30, 20250.08 \n\nOctober 14, 2025October 24, 2025October 31, 20250.08 \n\nOctober 14, 2025November 17, 2025November 26, 20250.08 \n\nOctober 14, 2025December 22, 2025December 31, 20250.08 \n\nJanuary 13, 2026January 23, 2026January 30, 20260.08 \n\nJanuary 13, 2026February 18, 2026February 27, 20260.08 \n\nJanuary 13, 2026March 23, 2026March 31, 20260.08 \n\nYear ended March 31, 2026\n$1.50 \n\n115\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nFor the Year Ended March 31, 2025:\n\nDeclaration Date\nRecord DatePayment DateDistribution\nper Common Share\n\nApril 9, 2024April 19, 2024April 30, 2024$0.08 \n\nApril 9, 2024May 17, 2024May 31, 20240.08 \n\nApril 9, 2024June 19, 2024June 28, 20240.08 \n\nJuly 9, 2024July 22, 2024July 31, 20240.08 \n\nJuly 9, 2024August 21, 2024August 30, 20240.08 \n\nJuly 9, 2024September 20, 2024September 30, 20240.08 \n\nSeptember 17, 2024October 4, 2024October 15, 20240.70 \n(A)\n\nOctober 8, 2024October 22, 2024October 31, 20240.08 \n\nOctober 8, 2024November 20, 2024November 29, 20240.08 \n\nOctober 8, 2024December 20, 2024December 31, 20240.08 \n\nJanuary 14, 2025January 24, 2025January 31, 20250.08 \n\nJanuary 14, 2025February 19, 2025February 28, 20250.08 \n\nJanuary 14, 2025March 19, 2025March 31, 20250.08 \n\nYear ended March 31, 2025:\n$1.66 \n\nFor the Year Ended March 31, 2024:\n\nDeclaration Date\nRecord DatePayment DateDistribution\nper Common Share\n\nApril 11, 2023April 21, 2023April 28, 2023$0.08 \n\nApril 11, 2023May 23, 2023May 31, 20230.08 \n\nApril 11, 2023June 5, 2023June 15, 20230.12 \n(A)\n\nApril 11, 2023June 21, 2023June 30, 20230.08 \n\nJuly 11, 2023July 21, 2023July 31, 20230.08 \n\nJuly 11, 2023August 23, 2023August 31, 20230.08 \n\nJuly 11, 2023September 7, 2023September 15, 20230.12 \n(A)\n\nJuly 11, 2023September 21, 2023September 29, 20230.08 \n\nOctober 10, 2023October 20, 2023October 31, 20230.08 \n\nOctober 10, 2023November 7, 2023November 17, 20230.12 \n(A)\n\nOctober 10, 2023November 20, 2023November 30, 20230.08 \n\nOctober 24, 2023December 5, 2023December 15, 20230.88 \n(A)\n\nOctober 10, 2023December 18, 2023December 29, 20230.08 \n\nJanuary 9, 2024January 23, 2024January 31, 20240.08 \n\nJanuary 9, 2024February 21, 2024February 29, 20240.08 \n\nJanuary 9, 2024March 21, 2024March 29, 20240.08 \n\nYear ended March 31, 2024:\n$2.20 \n\n(A)Represents a supplemental distribution to common stockholders.\n\nAggregate cash distributions to our common stockholders declared and paid for the years ended March 31, 2026, 2025 and 2024 were $57.2 million, $61.0 million, and $76.1 million, respectively.\n\nFor the fiscal years ended March 31, 2026, 2025, and 2024, Investment Company Taxable Income exceeded distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $21.3 million, $36.7 million, and $18.7 million, respectively, of the first distributions paid subsequent to fiscal year-end, as having been paid in the prior year. In addition, for the fiscal year ended March 31, 2026, the net capital loss carryforward balance was $17.3 million and no distributions paid subsequent to fiscal year-end will be treated as having been paid in the prior year. For the fiscal years ended March 31, 2025, and 2024, net capital gains exceeded distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $18.7 million, and $1.4 million, respectively, of the first distributions paid subsequent to fiscal year-end as having been paid in the prior year.\n\n116\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nWe may distribute our net long-term capital gains, if any, in cash or elect to retain some or all of such gains, pay taxes at the U.S. federal corporate-level income tax rate on the amount retained, and designate the retained amount as a “deemed distribution.” If we elect to retain net long-term capital gains and deem them distributed, each U.S. common stockholder will be treated as if they received a distribution of their pro-rata share of the retained net long-term capital gain and the U.S. federal income tax paid. As a result, each U.S. common stockholder will (i) be required to report their pro-rata share of the retained gain on their tax return as long-term capital gain, (ii) receive a refundable tax credit for their pro-rata share of federal income tax paid by us on the retained gain, and (iii) increase the tax basis of their shares of common stock by an amount equal to the deemed distribution less the tax credit. To use the deemed distribution approach, we must provide written notice to our common stockholders prior to the expiration of 60 days after the close of the relevant taxable year. For the years ended March 31, 2026, 2025, and 2024 we did not elect to retain long-term capital gains and to treat them as deemed distributions to common stockholders.\n\nThe components of our net assets on a tax basis were as follows:\n\nYear Ended March 31,\n\n20262025\n\nCommon stock\n$40 $37 \n\nCapital in excess of par value\n486,717 445,512 \n\nCumulative unrealized appreciation of investments\n254,793 38,460 \n\nCumulative unrealized depreciation of other\n(46)— \n\nUndistributed ordinary income21,283 36,673 \n\nUndistributed capital (loss) gain\n(17,260)18,663 \n\nOther temporary differences\n(77,302)(40,261)\n\nNet Assets\n$668,225 $499,084 \n\nFor the years ended March 31, 2026 and 2025, we recorded the following adjustments for estimated permanent book-tax differences to reflect tax character. Results of operations, total net assets, and cash flows were not affected by these adjustments.\n\nTax Year Ended March 31,\n\n20262025\n\n(Overdistributed) underdistributed net investment income\n$(9,994)$9,623 \n\nAccumulated net realized gain (loss) in excess of distributions\n$10,335 $(8,424)\n\nCapital in excess of par value\n$(341)$(1,199)\n\nNOTE 9.    FEDERAL AND STATE INCOME TAXES\n\nWe intend to continue to maintain our qualifications as a RIC for federal income tax purposes. As a RIC, we generally are not subject to federal income tax on the portion of our taxable income and gains that we distribute to stockholders. To maintain our qualification as a RIC, we must maintain our status as a BDC and meet certain source-of-income and asset diversification requirements. In addition, to qualify to be taxed as a RIC, we must distribute to stockholders at least 90% of our Investment Company Taxable Income. Our policy generally is to make distributions to our stockholders in an amount up to 100% of our Investment Company Taxable Income. We may retain some or all of our net long-term capital gains, if any, and designate them as deemed distributions, or distribute such gains to stockholders in cash. Because we have distributed or intend to distribute 100% of our Investment Company Taxable Income and net long-term capital gains, no income tax provisions have been recorded for the years ended March 31, 2026, 2025, and 2024.\n\nIn an effort to limit federal excise taxes, we have to distribute to stockholders, during each calendar year, an amount close to the sum of (1) 98% of our ordinary income for the calendar year, (2) 98.2% of our net capital gains (both long-term and short-term), if any, for the one-year period ending on October 31 of the calendar year and (3) any income realized, but not distributed, in the preceding period (to the extent that income tax was not imposed on such amounts), less certain reductions, as applicable. We incurred an excise tax of $0.3 million, $1.2 million, and $1.2 million for the calendar years ended December 31, 2025, 2024 and 2023, respectively, which are included in Other general and administrative expenses on the accompanying Consolidated Statement of Operations.\n\n117\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nUnder the RIC Modernization Act, we are permitted to carryforward any capital losses that we may incur for an unlimited period, and such capital loss carryforwards will retain their character as either short-term or long-term capital losses. Our capital loss carryforward balance was $17.3 million and $0 as of March 31, 2026 and 2025, respectively.\n\nNOTE 10.    COMMITMENTS AND CONTINGENCIES\n\nLegal Proceedings\n\nWe are party to certain legal proceedings incidental to the normal course of our business. We are required to establish reserves for litigation matters where those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, we do not establish reserves. Based on current knowledge, we do not believe that loss contingencies, if any, arising from pending investigations, litigation or regulatory matters will have a material adverse effect on our financial condition, results of operations or cash flows. Additionally, based on our current knowledge, we do not believe such loss contingencies are both probable and estimable and, therefore, as of March 31, 2026 and 2025, we had no established reserves for such loss contingencies.\n\nEscrow Holdbacks\n\nFrom time to time, we enter into arrangements relating to exits of certain investments whereby specific amounts of the proceeds are held in escrow to be used to satisfy potential obligations, as stipulated in the sales agreements. We record escrow amounts in Restricted cash and cash equivalents and Other liabilities, if received in cash but subject to potential obligations or other contractual restrictions, or as escrow receivables in Other assets, net, if not yet received in cash, on our accompanying Consolidated Statements of Assets and Liabilities. We establish reserves and holdbacks against escrow amounts if we determine that it is probable and estimable that a portion of the escrow amounts will not ultimately be released or received at the end of the escrow period. Reserves and holdbacks against escrow amounts were $1.0 million as of March 31, 2026 and 2025.\n\nFinancial Commitments and Obligations\n\nWe may have line of credit commitments to certain of our portfolio companies that have not been fully drawn. Since these line of credit commitments have expiration dates and we expect many will never be fully drawn, the total line of credit commitment amounts do not necessarily represent future cash requirements. We estimate the fair value of the combined unused line of credit commitments as of March 31, 2026 and 2025 to be insignificant.\n\nWe may also extend guaranties on behalf of our portfolio companies. As of March 31, 2026 and 2025, there were no guaranties outstanding.\n\nThe following table summarizes the principal balances of unused line of credit as of March 31, 2026 and 2025, which are not reflected as liabilities in the accompanying Consolidated Statements of Assets and Liabilities:\n\nAs of March 31,\n\n20262025\n\nUnused line of credit commitments\n$600 $3,440 \n\nTotal\n$600 $3,440 \n\n118\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nNOTE 11.    FINANCIAL HIGHLIGHTS\n\nAs of and for the Year Ended March 31,\n\n2026202520242023202220212020201920182017\n\nPer Common Share Data:\n\nNet asset value at beginning of year (A)\n$13.55 $13.43 $13.09 $13.43 $11.52 $11.17 $12.40 $10.85 $9.95 $9.22 \n\nIncome (loss) from investment operations(B)\n\nNet investment (loss) income\n(0.10)0.76 0.63 1.11 0.45 0.54 1.11 0.23 0.68 0.74 \n\nNet realized (loss) gain on investments and other\n(0.71)1.72 0.88 0.32 0.37 0.32 1.36 2.04 0.04 0.51 \n\nTaxes on deemed distributions of long-term capital gains\n— — — — — — (0.31)(0.41)— — \n\nNet unrealized appreciation (depreciation) of investments and other\n5.58 (0.70)0.96 (0.36)2.26 0.42 (2.38)0.63 1.16 0.23 \n\nTotal from investment operations\n4.77 1.78 2.47 1.07 3.08 1.28 (0.22)2.49 1.88 1.48 \n\nEffect of equity capital activity(B)\n\nCash distributions to common stockholders from net investment income(C)\n(0.99)(0.64)(1.08)(0.92)(0.91)(0.83)(0.75)(0.69)(0.84)(0.75)\n\nCash distributions to common stockholders from realized gains(C)\n(0.51)(1.02)(1.12)(0.49)(0.26)(0.10)(0.28)(0.24)(0.05)— \n\nDiscounts, commissions, and offering costs\n(0.02)— (0.02)(0.01)— — — — (0.03)— \n\nNet accretive (dilutive) effect of equity offering(D)\n0.07 — 0.10 0.01 — — 0.01 — (0.04)— \n\nTotal from equity capital activity\n(1.45)(1.66)(2.12)(1.41)(1.17)(0.93)(1.02)(0.93)(0.96)(0.75)\n\nOther, net(E)\n(0.09)— (0.01)— — — 0.01 (0.01)(0.02)— \n\nNet asset value at end of year(A)\n$16.78 $13.55 $13.43 $13.09 $13.43 $11.52 $11.17 $12.40 $10.85 $9.95 \n\nPer common share market value at beginning of year\n$13.36 $14.23 $13.25 $16.13 $12.23 $7.85 $11.60 $10.10 $9.07 $7.02 \n\nPer common share market value at end of year\n$14.20 $13.36 $14.23 $13.25 $16.13 $12.23 $7.85 $11.60 $10.10 $9.07 \n\nTotal investment return(F)\n18.14%5.65%25.52%(8.90%)42.40%70.65%(26.23%)24.95%21.82%41.58%\n\nCommon stock outstanding at end of year(A)\n39,821,967 36,837,381 36,688,667 33,591,505 33,205,023 33,205,023 33,049,463 32,822,459 32,653,635 30,270,958 \n\nWeighted-average shares of common stock outstanding38,712,611 36,735,218 34,466,724 33,311,785 33,205,023 33,176,760 32,865,840 32,807,597 32,268,776 30,270,958 \n\nConsolidated Statement of Assets and Liabilities Data:\n\nNet assets at end of year\n$668,225 $499,084 $492,711 $439,742 $445,830 $382,364 $369,031 $407,110 $354,200 $301,082 \n\nAverage net assets(G)\n$545,378 $478,440 $461,819 $446,899 $425,985 $365,568 $404,336 $391,786 $328,533 $294,030 \n\nSenior Securities Data:\n\nTotal borrowings, at cost\n$572,888 $463,738 $404,238 $297,688 $267,584 $155,434 $54,296 $58,096 $112,096 $74,796 \n\nMandatorily redeemable preferred stock(H)\n$— $— $— $— $— $94,371 $132,250 $132,250 $139,150 $139,150 \n\nRatios/Supplemental Data:\n\nRatio of net expenses to average net assets(I)\n18.85%13.70%14.19%9.97%13.51%10.58%6.32%13.30%11.08%10.02%\n\nRatio of net investment (loss) income to average net assets(J)\n(0.69)%5.87 %4.72 %8.28 %3.52 %4.91 %8.99 %1.92 %6.68 %7.63 %\n\nPortfolio turnover ratio\n1.68 %20.41 %9.58 %12.45 %12.34 %8.99 %21.27 %17.16 %14.87 %13.86 %\n\n119\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\n(A)Based on actual shares of common stock outstanding at the beginning or end of the corresponding year, as appropriate.\n\n(B)Based on weighted-average basic common share data for the corresponding year.\n\n(C)The tax character of distributions is determined based on taxable income calculated in accordance with income tax regulations, which may differ from amounts determined under GAAP. For further information on the estimated character of our distributions to common stockholders, including changes in estimates, as applicable, refer to Note 8 — Distributions to Common Stockholders.\n\n(D)During the years ended March 31, 2026, 2024, 2023, and 2020, the accretive effect is the result of issuing common shares at a price above the then current NAV per share. During the year ended March 31, 2018, the net dilutive effect is the result of issuing common shares at a price below the then current NAV per share.\n\n(E)Represents the impact of the different share amounts (weighted-average basic common shares outstanding for the corresponding year and actual common shares outstanding at the end of the year) in the Per Common Share Data calculations and rounding impacts.\n\n(F)Total investment return equals the change in the market value of our common stock from the beginning of the year, taking into account dividends reinvested in accordance with the terms of our dividend reinvestment plan. Total return does not take into account distributions that may be characterized as a return of capital. For further information on the estimated character of our distributions to common stockholders, including changes in estimates, as applicable, refer to Note 8 — Distributions to Common Stockholders.\n\n(G)Calculated using the average balance of net assets at the end of each month of the reporting year.\n\n(H)Represents the aggregate liquidation preference of our mandatorily redeemable preferred stock.\n\n(I)Ratio of net expenses to average net assets is computed using total expenses, net of any non-contractual, unconditional, and irrevocable credits of fees from the Adviser. Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of expenses to average net assets would have been 22.02%, 16.79%, 17.38%, 12.58%, 16.72%, 13.33%, 9.12%, 16.45%, 14.11%, and 13.46% for the fiscal years ended March 31, 2026, 2025, 2024, 2023, 2021, 2020, 2019, 2018, and 2017, respectively.\n\nHad we included Virginia state taxes incurred on the deemed distributions of retained capital gains for the fiscal years ended March 31, 2020 and 2019, the ratio of net expenses to average net assets would have been 6.89% and 14.07%, respectively.\n\n(J)Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of net investment (loss) income to average net assets would have been (3.85%), 2.79%, 1.53%, 5.66%, 0.31%, 2.16%, 6.20%, (1.22%), 3.66%, and 4.19% for the fiscal years ended March 31, 2026, 2025, 2024, 2023, 2022, 2020, 2019, 2018, and 2017, respectively.\n\n120\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)\n\nNOTE 12.    UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES\n\nIn accordance with the SEC’s Regulation S-X, we do not consolidate portfolio company investments. Further, in accordance with ASC 946, we are precluded from consolidating any entity other than another investment company, except that ASC 946 provides for the consolidation of a controlled operating company that provides substantially all of its services to the investment company or its consolidated subsidiaries.\n\nWe did not have any unconsolidated subsidiaries that met any of the significance conditions under Rule 1-02(w)(2) of the SEC’s Regulation S-X as of or during the years ended March 31, 2026, 2025 and 2024.\n\nNOTE 13.    SUBSEQUENT EVENT\n\nDistributions and Dividends\n\nIn April 2026, our Board of Directors declared the following monthly cash distributions to common stockholders:\n\nRecord Date\nPayment DateDistribution per Common Share\n\nApril 24, 2026April 30, 2026$0.08 \n\nMay 20, 2026May 29, 20260.08 \n\nJune 23, 2026June 30, 20260.08 \n\nTotal for the Quarter:$0.24 \n\nNotes Payable\n\nOn May 1, 2026, we repaid the 5.00% 2026 Notes with an aggregate principal amount outstanding of $127.9 million at maturity.\n\n121\n\n[Table of Contents](#id4d58da65d414707b3cd9972f3050497_7)"}