REFI — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-11

• the timing, completion and expected benefits of our proposed merger with Chicago Atlantic BDC, Inc. (“LIEN”), and the risk that the anticipated benefits may not be realized;

• our ability to obtain the required stockholder approvals of the Company and LIEN and the approvals required under Rule 17a-8 of the 1940 Act;

• the risk that required regulatory approvals or non-objections relating to our proposed merger with LIEN, may not be obtained, including SEC acceptance of the Company's election to be regulated as a business development company;

• movement in the Exchange Ratio between signing of the merger agreement for our proposed merger with LIEN and closing of the transaction due to changes in the net asset values of the Company and LIEN;

• the incurrence of significant transaction and integration costs and the risk of litigation relating to the merger;

Text removed vs the prior filing · source: 10-Q · 2026-05-07

• To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute annually to our stockholders at least 90% of our REIT taxable income prior to the deduction for dividends paid. To the extent that we distribute less than 100% of ou…

• Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740 - Income Taxes (“ASC 740”), prescribes a recognition threshold and measurement attribute for the consolidated financial statement recognition and measurement of a tax position taken or expected to be ta…

• As of March 31, 2026 our loan portfolio included 29 loans held for investment, with $413.6 million in principal outstanding, and approximately $4.5 million in unfunded commitments under delayed draw term loan facilities. Our loans are generally classified as held for investment and carried at amorti…

• Weighted average remaining life is calculated based on the carrying value of the loans as of March 31, 2026 and December 31, 2025, respectively.

• As of March 31, 2026 and December 31, 2025, our loan portfolio had a weighted-average yield-to-maturity internal rate of return (“YTM IRR”) of 15.8% and 16.3%, respectively, and was substantially secured by real estate and, with respect to certain of our loans, substantially all assets of the borrow…

Text added vs the prior filing · source: 10-Q · 2026-08-11

• and supportable forecasts of future economic conditions. Changes in these assumptions, including adverse changes in real estate values, interest rates, occupancy levels, or macroeconomic conditions, could result in material increases in the Company’s allowance for credit losses.

• As of June 30, 2026, we had 15 floating-rate loans, representing approximately 58.8% of our loan portfolio based on aggregate outstanding principal balances. The remaining 41.2% is represented by fixed rate loans. As of June 30, 2025, 59.3% and 40.7% of outstanding principal was represented by float…

• In addition, our Revolving Loan is exposed to similar interest rate risk. Our Revolving Loan bears interest at the greater of (1) the Prime Rate plus the applicable margin and (2) 3.25%. As of June 30, 2026, we had an outstanding balance of $91.1 million under the Revolving Loan, and an additional $…

• Based on our Consolidated Statement of Operations for the period ended June 30, 2026, the following table shows the estimated annualized impact on net income resulting from hypothetical benchmark rate changes on our floating-rate portfolio (considering interest rate floors, as applicable). Managemen…

Text removed vs the prior filing · source: 10-Q · 2026-05-07

• Further, an increase in short-term interest rates could also have a negative impact on the market value of our target investments. If any of these events happen, we could experience a decrease in net income or incur a net loss during these periods, which could adversely affect our liquidity and resu…

• As of March 31, 2026, we had 15 floating-rate loans, representing approximately 64.8% of our loan portfolio based on aggregate outstanding principal balances. The remaining 35.2% is represented by fixed rate loans. As of March 31, 2025, 59.3% and 40.7% of outstanding principal was represented by flo…

• In addition, our Revolving Loan is exposed to similar interest rate risk. Our Revolving Loan bears interest at the greater of (1) the Prime Rate plus the applicable margin and (2) 3.25%. As of March 31, 2026, we had an outstanding balance of $67.1 million under the Revolving Loan, and an additional …

• Based on our Consolidated Statement of Operations for the year ended March 31, 2025, the following table shows the estimated annualized impact on net income resulting from hypothetical benchmark rate changes on our floating-rate portfolio (considering interest rate floors, as applicable).

• fixed-rate interest earnings and may not be matched by a corresponding increase in floating-rate interest earnings. Any such interest rate mismatch could adversely affect our profitability, which may negatively impact distributions to our stockholders.