0001487918-23-000011 | 10-K | XBRL Viewer

Interest Rate

23.88%

^[1],[2],[3]

11.00%

^[4],[5]

$ 492,641

^[6]

$ 465,995

^[7]

10,160

^[8]

11,264

^[4],[5]

$ 1,104

^[8]

$ 12,948

^[4],[5]

Total Debt and Equity Investments

277.40%

^[6]

248.90%

^[7]

$ 342,699

$ 350,939

372,403

382,361

$ 412,058

$ 431,898

Total Subordinated Notes and Mezzanine Debt Investments

228.30%

212.00%

$ 90,799

66,451

$ 66,701

Structured Finance Securities

32.80%

$ 131,474

^[9]

$ 99,299

^[10]

102,477

^[9]

74,951

$ 88,518

^[9]

$ 75,201

49.10%

^[9]

36.90%

[1]	Amortized cost reflects accretion of effective yield less any cash distributions received or entitled to be received from CLO subordinated note investments. CLO subordinated note positions are entitled to recurring distributions, which are generally equal to the residual cash flow of payments received on underlying securities less contractual payments to debt holders and fund expenses.
[2]	At December 31, 2022, the Company held loans with an aggregate principal amount of $312,595, or 87% of the total loan portfolio, that bear interest at a variable rate indexed to LIBOR (L) or SOFR, and reset monthly, quarterly, or semi-annually. For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect at December 31, 2022. Unless otherwise noted, all investments with a stated PIK rate require interest payments with the issuance of additional securities as payment of the entire PIK provision.
[3]	The rate disclosed on subordinated note investments is the estimated effective yield, generally established at purchase and re-evaluated upon receipt of distributions, and based upon projected amounts and timing of future distributions and the projected amount and timing of terminal principal payments at the time of estimation. The estimated yield and investment cost may ultimately not be realized.
[4]	Investments (or portion thereof) held by SBIC I LP. These assets are pledged as collateral of the SBA debentures and cannot be pledged under any debt obligation of the Company.
[5]	The Company holds at least one seat on the portfolio company’s board of directors.
[6]	Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
[7]	Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company’s investments are generally classified as "restricted securities" as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
[8]	The Company has an observer seat on the portfolio company’s board of directors.
[9]	Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets. As of December 31, 2022, approximately 80% of the Company's assets were qualifying assets.
[10]	Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets. As of December 31, 2021, approximately 85% of the Company's assets were qualifying assets.

Consolidated Schedule of Investments (Parenthetical) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2022

Shares/units held (in shares)

554

^[1],[2]

356

^[3],[4]

Warrants

$ 600

^[5],[6]

$ 600

^[7],[8]

465,995

^[9]

492,641

^[10]

Loans, aggregate principal amount, bear interest at variable rates

$ 11,264

^[1],[2]

10,160

^[4]

$ 312,595

Loans, aggregate principal amount, bear interest at variable rates, percentage

87.00%

Effective interest rate

7.88%

11.84%

Interest rate

7.50%

10.49%

Additional Interest per Annum

0.38%

1.35%

Qualifying assets percentage

85.00%

80.00%

Minimum

Reference rate floor

0.75%

Minimum | LIBOR

Basis spread on variable interest rate

0.75%

Maximum

Reference rate floor

1.00%

Maximum | LIBOR

Basis spread on variable interest rate

1.00%

Loans subject to reference rate floor provisions

Related Party Transactions

$ 316,558

[1]	Investments (or portion thereof) held by SBIC I LP. These assets are pledged as collateral of the SBA debentures and cannot be pledged under any debt obligation of the Company.
[2]	The Company holds at least one seat on the portfolio company’s board of directors.
[3]	Non-income producing.
[4]	The Company has an observer seat on the portfolio company’s board of directors.
[5]	Investments (or portion thereof) held by OFSCC-FS. These assets are pledged as collateral of the BNP Facility and cannot be pledged under any other debt obligation of the Company.
[6]	Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets. As of December 31, 2021, approximately 85% of the Company's assets were qualifying assets.
[7]	Investments (or portion thereof) held by OFSCC-FS. These assets are pledged as collateral of the BNP Facility and cannot be pledged under any other debt obligation of the Company.
[8]	Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets. As of December 31, 2022, approximately 80% of the Company's assets were qualifying assets.
[9]	Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company’s investments are generally classified as "restricted securities" as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
[10]	Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.

Organization	12 Months Ended
Organization	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization OFS Capital Corporation (and collectively with its subsidiaries, the “Company”), a Delaware corporation, is an externally managed, closed-end, non-diversified management investment company. The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”). In addition, for income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of Code under the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s investment objective is to provide stockholders with both current income and capital appreciation through its strategic investment focus primarily on debt investments and, to a lesser extent, equity investments primarily in middle-market companies principally in the United States. In addition, the Company may invest in collateralized loan obligation (“CLO”) debt, subordinated (i.e., residual or equity) notes and loan accumulation facility securities (collectively referred to as “Structured Finance Securities”). OFS Capital Management, LLC (“OFS Advisor”), a registered investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), a wholly owned subsidiary of Orchard First Source Asset Management, LLC, a full-service provider of capital and leveraged finance solutions to U.S. corporations (“OFSAM”), manages the day-to-day operations of, and provides investment advisory services to, the Company. OFS Advisor also serves as the investment adviser for Hancock Park Corporate Income, Inc. (“HPCI”), a Maryland corporation and a BDC. HPCI’s investment objective is similar to that of the Company. OFS Advisor also serves as the investment adviser for OFS Credit Company, Inc. (“OCCI”), a non-diversified, externally managed, closed-end management investment company that is registered as an investment company under the 1940 Act and that primarily invests in CLO debt and subordinated securities. Additionally, OFS Advisor serves as the investment adviser to separately-managed accounts and sub-advisor to investment companies managed by an affiliate. The Company may also make investments through OFSCC-FS, LLC (“OFSCC-FS”), a wholly owned and consolidated special-purpose vehicle formed in April 2019 for the purpose of acquiring senior secured loan investments; and through OFSCC-MB, Inc. (“OFSCC-MB”), a wholly owned and consolidated subsidiary taxed under subchapter C of the Code, that generally holds the equity investments of the Company that are taxed as pass-through entities. The Company may make follow-on investments in current portfolio companies held through OFS SBIC I LP (“SBIC LP”), its wholly owned and consolidated investment company subsidiary licensed under the U.S. Small Business Administration’s (“SBA”) small business investment company program (“SBIC Program”). SBIC I LP is subject to SBA regulatory requirements, including limitations on the businesses and industries in which it can invest, requirements to invest at least 25% of its “regulatory capital” in “eligible smaller businesses”, as defined under the Small Business Investment Act of 1958, as amended (“SBIC Act”), limitations on the financing terms of investments, and capitalization thresholds that may limit distributions to the Company; and is subject to periodic audits and examinations of its financial statements.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of presentation: The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including ASC Topic 946, Financial Services-Investment Companies, and the reporting requirements for Form 10-K, the 1940 Act, and Articles 6 and 12 of Regulation S-X. The consolidated financial statements include all adjustments, consisting only of normal and recurring accruals and adjustments, necessary for fair presentation in accordance with GAAP. Reclassifications: Certain prior period amounts may have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes thereto. 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. Principles of consolidation: The Company consolidates majority-owned investment company subsidiaries. The Company does not own any controlled operating company whose business consists of providing services to the Company, which would also require consolidation. All intercompany balances and transactions are eliminated upon consolidation. Fair value of financial instruments: The Company applies fair value accounting to all of its financial instruments in accordance with ASC Topic 820, Fair Value Measurements ("ASC" Topic 820"), which defines fair value, establishes a framework to measure fair value, and requires disclosures regarding fair value measurements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is determined through the use of models and other valuation techniques, valuation inputs, and assumptions market participants would use to value the financial instrument. Highest priority is given to prices for identical financial instruments quoted in active markets (Level 1) and the lowest priority is given to unobservable valuation inputs (Level 3). The availability of observable inputs can vary significantly and is affected by many factors, including the type of product, whether the product is new to the market, whether the product is traded on an active exchange or in the secondary market, and the current market conditions. To the extent that the valuation is based on unobservable inputs, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3 (i.e., those instruments valued using unobservable inputs), which comprise the majority of the Company’s investments. See Note 5 for details. Changes to the Company's and OFS Advisor's valuation policies are reviewed and approved by management and the Company’s board of directors (the “Board”). As the Company’s investments change, markets change, new products develop, and valuation inputs become more or less observable, the Company will continue to refine its valuation methodologies. See Note 5 for more detailed disclosures of the Company’s fair value measurements of its financial instruments. Investment classification: The Company classifies its investments in accordance with the 1940 Act. Under the 1940 Act, “Control Investments” are defined as investments in those companies in which the Company owns more than 25% of the voting securities or has rights to maintain greater than 50% of board representation, “Affiliate Investments” are defined as investments in those companies in which the Company owns between 5% and 25% of the voting securities, and “Non-Control/Non-Affiliate Investments” are those that neither qualify as Control Investments nor Affiliate Investments. Significant Subsidiaries: The Company evaluates the issuers of its Control Investments for significance in accordance with Rules 3-09 and 4-08(g) of Regulation S-X. No issuers of Control Investments were considered a significant subsidiary under these rules as of or for the years ended December 31, 2022, 2021 and 2020. Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of investment income, expenses, gains and losses during the reporting period. Actual results could differ significantly from those estimates. Reportable segments: The Company has a single reportable segment and single operating segment structure. Cash: The Company’s cash balances are maintained with a member bank of the Federal Deposit Insurance Corporation (“FDIC”) and at times, such balances may be in excess of the FDIC insurance limits. The Company does not believe its cash balances are exposed to any significant credit risk. Cash includes aggregate amounts totaling $14,937 and $43,048 held in US Bank N.A. and Citibank N.A. money market deposit accounts as of December 31, 2022 and 2021, respectively. In addition, the Company’s use of cash held by SBIC I LP and OFSCC-FS is limited by SBA regulation and the terms and conditions of the BNP Facility, respectively, including but not limited to, payment of interest expense and principal on the outstanding borrowings. Revenue recognition: Interest income: Interest income from the Company's loan and CLO debt investments is recognized on an accrual basis and reported as an interest receivable until collected. Interest income is accrued based on the outstanding principal amount on the consolidated schedule of investments and the contractual terms of the debt investment. Certain of the Company’s investments contain a payment-in-kind interest income provision (“PIK interest”). The PIK interest, computed at the contractual rate specified in the applicable investment agreement, is added to the principal balance of the investment, rather than being paid in cash. Recognition of PIK interest includes assessments of collectability. The Company discontinues accrual of interest income, including PIK interest, when there is reasonable doubt that the interest income will be collected. See Non-Accrual Loans section. Loan origination fees, original issue discount (“OID”), market discount or premium, and loan amendment fees (collectively, “Net Loan Fees”) are recorded as an adjustment to the amortized cost of the investment, and accreted or amortized as an adjustment to interest income over the life of the respective debt investment using a method that approximates the effective interest method. When the Company receives a loan principal payment, the unamortized Net Loan Fees related to the paid principal is accelerated and recognized in interest income. Further, the Company may acquire or receive equity, warrants or other equity-related securities in connection with the Company’s acquisition of, subsequent amendment or restructuring to, debt investments. The Company determines the cost basis of the equity investment based on its fair value, and the fair value of debt investments and other securities or consideration received. Any resulting difference between the face amount of the debt and its recorded cost resulting from the assignment of value to the equity investment is treated as OID, and accreted into interest income as described above. Interest income - Structured Finance Securities: Structured Finance Securities include CLO debt, CLO subordinated securities and loan accumulation facility positions. Interest income from investments in CLO subordinated securities is recognized on the basis of the estimated effective yield to expected redemption utilizing assumed cash flows in accordance with ASC Sub-topic 325-40, Beneficial Interests in Securitized Financial Assets. The Company monitors the expected cash flows from its CLO subordinated securities, and the accretable yields are determined and updated periodically. Expected cash flows inherent in the Company's estimates of accretable yields are based on expectations of defaults and loss-on-default severity, as well as other loan-performance assumptions, impacting the loans in the underlying CLO portfolios. These estimated cash flows are subject to a reasonable possibility of near-term change due to economic and credit market conditions, and the effect of these changes could be material. Interest income from investments in loan accumulation facilities is recognized on an accrual basis based on an estimated yield. Income notes associated with loan accumulation facilities generally pay returns equal to the actual income earned on facility assets less costs of senior financing and manager costs. Interest income is generally received upon the earlier of the closing of the CLO securitization or liquidation of the underlying portfolio. Dividend income: Dividend income on common equity securities in limited liability companies, partnerships, and other private entities, generally payable in cash, is accrued at the time dividends are declared (in the absence of a formal ex-dividend or record date). Declared dividends payable in cash are reported as dividends receivable until collected. Distributions in excess of current or accumulated net income of the underlying portfolio company are recorded as return of capital and, correspondingly, as a reduction in the cost of the investment. Dividend income on preferred equity investments is accrued based on the contractual terms of the preferred equity investment. Dividends on preferred equity securities may be payable in cash or in additional preferred securities. Non-cash dividends payable in additional preferred securities ("PIK dividends") are recorded as an adjustment (i.e., increase) to the cost basis of the investment. The Company discontinues accrual of PIK dividends when there is reasonable doubt that the income will ultimately be collected. Fee income: The Company generates fee revenue in the form of syndication, prepayment, and other contractual fees, that are recognized as the related services are rendered. In the general course of its business, the Company receives certain fees, such as management fees, from portfolio companies which are non-recurring in nature. Prepayment fees are received on certain loans when repaid prior to their scheduled due date, which are recognized as earned when received, and syndication fees are received for capital structuring, loan syndication or advisory services from certain portfolio companies, which are recognized as earned upon closing of the investment. Investment transactions and net realized and unrealized gain or loss on investments: Investment transactions are reported on a trade-date basis. Unsettled trades as of the statement of assets and liabilities date are included in receivable for investments sold and payable for investments purchased. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of the investment. Investments are valued at fair value as determined in good faith by OFS Advisor, as the valuation designee, under the oversight of the Board. After recording all appropriate interest, dividend, and other income, some of which is recorded as an adjustment to the cost basis of the investment as described above, the Company reports changes in the fair value of investments as net unrealized appreciation (depreciation) on investments in the consolidated statements of operations. Non-accrual loans: Management reviews all loans that become past due on principal and interest, and/or when there is reasonable doubt that principal or interest will be collected, for placement on non-accrual status. When a loan is placed on non-accrual status, accrued and unpaid interest is reversed. Additionally, Net Loan Fees are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments subsequently received on non-accrual investments may be recognized as income or applied to principal depending upon management’s judgment. Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments and, in the judgment of management, the investments are estimated to be fully collectible as to all principal and interest. See Note 4 for further information on loans on non-accrual status as of December 31, 2022 and December 31, 2021. Income taxes: The Company has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code. To qualify as a RIC, the Company must, among other things, meet certain source of income and asset diversification requirements, and timely distribute at least 90% of its investment company taxable income (“ICTI”) to its stockholders. The Company has made, and intends to continue to make, requisite distributions to its stockholders, which generally relieves the Company from U.S. federal income taxes. Depending on the level of ICTI earned in a tax year, the Company may choose to retain ICTI in an amount less than that which would trigger U.S. federal income tax liability under Subchapter M of the Code. However, the Company would be liable for a 4% excise tax on such income. Excise tax liability is recognized when the Company determines its estimated current year annual ICTI, as defined in the Code, exceeds distributions from current year ICTI. For the years ended December 31, 2022, 2021 and 2020, the Company accrued U.S. federal excise taxes of $100, $0 and $0, respectively. The Company may utilize OFSCC-MB when making equity investments in portfolio companies taxed as pass-through entities to meet its source-of-income requirements as a RIC. For U.S. federal income tax purposes, OFSCC-MB is not consolidated with the RIC and is taxed as a C-Corporation. See Note 8 for further information. The Company evaluates tax positions taken in the course of preparing its tax returns to determine whether they are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold could result in greater and undistributed ICTI, income and excise tax expense, and, if involving multiple years, a re-assessment of the Company’s RIC status. GAAP requires recognition of accrued interest and penalties related to uncertain tax benefits as income tax expense. There were no uncertain income tax positions at December 31, 2022, 2021 and 2020. The current and prior three tax years remain subject to examination by U.S. federal and most state tax authorities. Distributions: Distributions to common stockholders are recognized on the record date. The timing of distributions as well as the amount to be paid out as a distribution is determined by the Board each quarter. Distributions from net investment income and net realized gains are determined in accordance with the Code. Net realized capital gains, if any, are distributed at least annually, although the Company may decide to retain such capital gains for investment. Distributions paid in excess of ICTI and not capital gains are considered returns of capital to stockholders. The Company has adopted a distribution reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Board authorizes and the Company declares a cash distribution, then stockholders who have not “opted out” of the DRIP will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. The Company may use newly issued shares under the guidelines of the DRIP, or the Company may purchase shares in the open market in connection with its obligations under the plan. Deferred debt issuance costs: Deferred debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. Deferred debt issuance costs are presented as a direct reduction of the related debt liability on the consolidated statements of assets and liabilities except for deferred debt issuance costs associated with the Company’s line of credit arrangements, which are included in prepaid expenses and other assets on the consolidated statements of assets and liabilities. Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2022 and 2021, were $1,316 and $671, respectively. Deferred debt issuance costs are amortized to interest expense over the term of the related debt. Goodwill: On December 4, 2013, in connection with the Company's acquisition of the remaining ownership interests in SBIC I LP and SBIC I GP, LLC, making SBIC I LP a wholly owned subsidiary of the Company (“SBIC Acquisition”), the Company recorded goodwill of $1,077. The decline in the price of the Company’s common stock and the level at which it continued to trade relative to the broader stock indices for the BDC industry, led management to conclude in the third quarter of 2020 that an impairment in the value of the Company’s goodwill was more likely than not. Moreover, due to the discount at which the Company’s stock traded to its net asset value, management concluded that the impairment of goodwill equal to the full amount of its carrying value of $1,077 was appropriate. Intangible asset: On December 4, 2013, in connection with the SBIC Acquisition, the Company recorded an intangible asset of $2,500 attributable to the SBIC license. The Company amortizes this intangible asset on a straight-line basis over its estimated useful life. During the first quarter of 2022, the Company changed its estimate of the useful life to terminate on March 1, 2024, due to continued early redemptions of SBA debentures. The Company recognized amortization of $409, $222 and $206 for the years ended December 31, 2022, 2021 and 2020, respectively. The Company tests its intangible asset for impairment if events or circumstances suggest that the asset carrying value may not be fully recoverable. The carrying value of the intangible asset, net of accumulated amortization, was $477 and $886 at December 31, 2022 and 2021, respectively, is included in prepaid expenses and other assets in the consolidated statements of assets and liabilities. Interest expense: Interest expense is recognized on an accrual basis as incurred. Concentration of credit risk: Aside from the Company's investments, financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at financial institutions. At various times during the year, the Company may exceed the federally insured limits. The Company places cash deposits only with high credit quality institutions which OFS Advisor believes will mitigate the risk of loss due to credit risk. The amount of loss due to credit risk from its investments, if borrowers completely fail to perform according to the terms of the contracts, is equal to the Company's recorded investment and the unfunded commitments disclosed in Note 6. New Accounting Pronouncements and Rule Issuances In March 2020, the FASB issued “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”) to provide optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 established Topic 848 to provide relief during the temporary transition period and includes a sunset provision based on expectations of when the London Interbank Offered Rate (“LIBOR”) would cease being published. ASU 2022-06 further defers the sunset provision date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Upon adoption of ASU 2022-06, there was no significant impact to the Company’s consolidated financial position. In December 2020, the SEC issued a final rule adopting Rule 2a-5 under the 1940 Act to establish requirements for determining fair value in good faith for purposes of the 1940 Act. Pursuant to Rule 2a-5, on September 7, 2022, the Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to the Company’s investments, commencing with the quarter ended September 30, 2022. In order for the Board to maintain oversight, OFS Advisor implemented the required reporting elements as prescribed in Rule 2a-5. In June 2022, the FASB issued Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 amended Topic 820 to, among other things, (i) clarify the guidance when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (ii) amend a related illustrative example and (iii) introduce new disclosure requirements for equity securities subject to contractual sale restrictions. ASU 2022-03 amendments are effective for the Company’s fiscal year ending December 31, 2024, and interim periods within the year. ASU 2022-03 provisions are to be applied prospectively with any adjustments made to earnings on the date of adoption. The Company is currently evaluating the impact, if any, ASU 2022-03 will have on its consolidated financial position or disclosures.

Related Party Transactions

12 Months Ended

Dec. 31, 2022

Investment Advisory and Management Agreement: OFS Advisor manages the day-to-day operations of, and provides investment advisory services to, the Company pursuant to an agreement dated November 7, 2012 (“Investment Advisory Agreement”). The Investment Advisory Agreement was most recently re-approved on April 5, 2022. Under the terms of the Investment Advisory Agreement, which are in accordance with the 1940 Act and subject to the overall supervision of the Board, OFS Advisor is responsible for sourcing potential investments, conducting research and diligence on potential investments and equity sponsors, analyzing investment opportunities, structuring investments, and monitoring investments and portfolio companies on an ongoing basis. OFS Advisor is a wholly owned subsidiary of OFSAM and a registered investment advisor under the Investment Advisers Act of 1940, as amended.

OFS Advisor’s services under the Investment Advisory Agreement are not exclusive to the Company and OFS Advisor is free to furnish similar services to other entities, including other BDCs affiliated with OFS Advisor, so long as its services to the Company are not impaired. OFS Advisor also serves as the investment adviser or sub-adviser to various clients, including HPCI and OCCI.

OFS Advisor receives fees for providing services, consisting of two components: a base management fee and an incentive fee. The base management fee is calculated at an annual rate of 1.75% and based on the average value of the Company’s total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity) at the end of the two most recently completed calendar quarters, adjusted for any share issuances or repurchases during the quarter. OFS Advisor has elected to exclude the value of the intangible assets resulting from the SBIC Acquisition from the base management fee calculation.

Effective from January 1, 2020 through December 31, 2022, OFS Advisor agreed to reduce the base management fee attributable to all assets held through OFSCC-FS (“OFSCC-FS Assets”), excluding cash. The agreement reduced the base

management fee to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (excluding cash) at the end of the two most recently completed calendar quarters. OFS Advisor’s base management fee reduction is renewable on an annual basis and OFS Advisor is not entitled to recoup the amount of the base management fee reduced with respect to the OFSCC-FS Assets. This agreement was renewed for the 2023 calendar year on January 11, 2023.

The incentive fee has two parts. The first part of the incentive fee ("Income Incentive Fee") is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination and sourcing, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (as defined below) and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest or dividend feature (such as OID, debt instruments with PIK interest, equity investments with accruing or PIK dividend and zero coupon securities), accrued income that the Company has not yet received in cash.

Pre-incentive fee net investment income is expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter and adjusted for any share issuances or repurchases during such quarter. The incentive fee with respect to pre-incentive fee net income is 20.0% of the amount, if any, by which the pre-incentive fee net investment income for the immediately preceding calendar quarter exceeds a 2.0% (which is 8.0% annualized) hurdle rate and a “catch-up” provision measured as of the end of each calendar quarter. Under this provision, in any calendar quarter, OFS Advisor receives no incentive fee until the net investment income equals the hurdle rate of 2.0%, but then receives, as a “catch-up,” 100.0% of the 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 2.5%. The effect of this provision is that, if pre-incentive fee net investment income exceeds 2.5% in any calendar quarter, OFS Advisor will receive 20.0% of the pre-incentive fee net investment income.

Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter in which the Company incurs a loss. For example, if the Company receives pre-incentive fee net investment income in excess of the quarterly minimum hurdle rate, the Company will pay the applicable incentive fee even if the Company has incurred a loss in that quarter due to realized and unrealized capital losses. The Company’s net investment income used to calculate this part of the incentive fee is also included in the amount of the Company’s gross assets used to calculate the base management fee. These calculations are appropriately prorated for any period of less than three months.

The second part of the incentive fee (the “Capital Gains Fee”) is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), commencing on December 31, 2012, and equals 20.0% of the Company’s aggregate realized capital gains, if any, on a cumulative basis from the date of the election to be a BDC through the end of each calendar year, computed net of all realized capital losses, losses on extinguishment of debt, income taxes from realized capital gains and unrealized capital depreciation through the end of such year, less all previous amounts paid in respect of the Capital Gains Fee; provided that the incentive fee determined as of December 31, 2012, was calculated for a period of shorter than twelve calendar months to take into account any realized capital gains computed net of all realized capital losses and unrealized capital depreciation for the period beginning on the date of the Company’s election to be a BDC and ending December 31, 2012.

The Company accrues the Capital Gains Fee if, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) is positive. An accrued Capital Gains Fee relating to net unrealized appreciation is deferred, and not due to OFS Advisor, until the close of the year in which such gains are realized. If, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) decreases during a period, the Company will reverse any excess Capital Gains Fee previously accrued such that the amount of Capital Gains Fee accrued is no more than 20% of the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation). As of December 31, 2022 and December 31, 2021, the payable to investment adviser and affiliates on the consolidated statements of assets and liabilities includes a Capital Gains Fee of $0 and $1,916, respectively. During the year ended December 31, 2022, the Company reversed the previously accrued Capital Gains Fees due to a reduction in net unrealized appreciation on the investment portfolio.

On May 4, 2020, OFS Advisor agreed to irrevocably waive the receipt of $441 in Income Incentive Fees (based on net investment income) related to net investment income, that it would otherwise be entitled to receive under the Investment

Advisory Agreement for the three months ended March 31, 2020. As a result of the voluntary fee waiver, the Company incurred Income Incentive Fee expense of $442 for the three months ended March 31, 2020, which is equal to half the Income Incentive Fee expense the Company would have incurred for the three months ended March 31, 2020. The voluntary fee waiver did not include a Capital Gains Fee, which was $0 for the three months ended March 31, 2020.

License Agreement: The Company entered into a license agreement with OFSAM under which OFSAM has agreed to grant the Company a non-exclusive, royalty-free license to use the name “OFS.”

Administration Agreement: OFS Services furnishes the Company with office facilities and equipment, necessary software licenses and subscriptions, and clerical, bookkeeping and record keeping services at such facilities pursuant to an Administration Agreement. The Administration Agreement was most recently re-approved by the Board on April 5, 2022. Under the Administration Agreement, OFS Services performs, or oversees the performance of, the Company’s required administrative services, which include being responsible for the financial records that the Company is required to maintain and preparing reports to its stockholders and all other reports and materials required to be filed with the SEC or any other regulatory authority. In addition, OFS Services assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports to its stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Under the Administration Agreement, OFS Services also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted the Company’s offer to provide such assistance. Payment under the Administration Agreement is equal to an amount based upon the Company’s allocable portion of OFS Services’s overhead in performing its obligations under the Administration Agreement, including, but not limited to, rent, information technology services and the Company’s allocable portion of the cost of its officers, including its chief executive officer, chief financial officer, chief compliance officer, chief accounting officer, and their respective staffs. To the extent that OFS Services outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to OFS Services.

Equity Ownership: As of December 31, 2022, affiliates of OFS Advisor held 3,019,694 shares of common stock, which is approximately 23% of the Company's outstanding shares of common stock.

Expenses recognized under agreements with OFS Advisor and OFS Services and distributions paid to affiliates for the years ended December 31, 2022, 2021 and 2020 are presented below:


	December 31,
	2022		2021		2020
Base management fees	$	7,979	$	7,669	$	7,605
Incentive fees:
Income Incentive Fee	2,276		2,352		2,025
Income Incentive Fee waiver	—		—		(441)
Capital Gains Fee(1)	(1,916)		1,916		—
Administration fees	1,742		1,758		1,855
Distributions paid to affiliates	3,503		2,764		2,553

(1) As of December 31, 2021, the Capital Gains Fee of $1,916 was deferred, and not due to the Advisor, until the close of the year in which such gains are realized. During the year ended December 31, 2022, the Company reversed the previously accrued Capital Gains Fees of $1,916 due to a reduction in net unrealized appreciation on the investment portfolio.

Investments

12 Months Ended

Dec. 31, 2022

Schedule of Investments [Abstract]

Investments

As of December 31, 2022, the Company had loans to 52 portfolio companies, of which 99.6% were senior secured loans and 0.4% were subordinated loans, at fair value. The Company also held equity investments in 16 portfolio companies and 23 investments in Structured Finance Securities. At December 31, 2022, the Company’s investments consisted of the following:


			Percentage of Total						Percentage of Total
	Amortized Cost		Amortized Cost		Net Assets		Fair Value		Fair Value		Net Assets
Senior secured debt investments	$	335,558	70.7	%	186.0	%	$	311,636	62.3	%	172.7	%
Subordinated debt investments	13,890		2.9		7.7		1,226		0.2		0.7
Preferred equity	9,966		2.1		5.5		8,196		1.6		4.5
Common equity, warrants and other	12,989		2.7		7.2		91,000		18.2		50.4
Total debt and equity investments	$	372,403	78.4	%	206.4	%	$	412,058	82.3	%	228.3	%
Structured Finance Securities	102,477		21.6		56.8		88,518		17.7		49.1
Total	$	474,880	100.0	%	263.2	%	$	500,576	100.0	%	277.4	%

At December 31, 2022, the Company had five loans on non-accrual status with respect to all interest and Net Loan Fee amortization, with an aggregate amortized cost and fair value of $36,522 and $11,225, respectively.

Geographic composition is determined by the location of the corporate headquarters of the portfolio company. As of December 31, 2022 and 2021, the Company's investment portfolio was domiciled as follows:


	December 31, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
United States of America	$	367,723	$	407,851	$	378,823	$	428,321
Canada	4,680		4,207		12,038		12,077
Cayman Islands1	102,477		88,518		66,451		66,701


Total investments	$	474,880	$	500,576	$	457,312	$	507,099

(1) Investments domiciled in the Cayman Islands represent certain Structured Finance Securities held by the Company. These investments generally represent beneficial interests in underlying portfolios of debt investments in companies domiciled in the United States.

As of December 31, 2022, the industry compositions of the Company’s debt and equity investments were as follows:


			Percentage of Total						Percentage of Total
	Amortized Cost		Amortized Cost		Net Assets		Fair Value		Fair Value	Net Assets
Administrative and Support and Waste Management and Remediation Services
All Other Business Support Services	$	2,745	0.6	%	1.5	%	$	2,511	0.5%	1.4%
Convention and Trade Show Organizers	160		—		0.1		80		—	—
Hazardous Waste Treatment and Disposal	1,765		0.4		1.0		1,652		0.3	0.9
Landscaping Services	4,611		1.0		2.6		4,226		0.8	2.3

Security Systems Services (except Locksmiths)	5,849		1.2		3.2		5,767		1.2	3.2
Temporary Help Services	8,854		1.9		4.9		8,821		1.8	4.9

Arts, Entertainment, and Recreation

Other Amusement and Recreation Industries	16,303		3.4		9.0		16,497		3.3	9.1
Construction
Electrical Contractors and Other Wiring Installation Contractors	17,666		3.7		9.8		9,247		1.8	5.1
New Single-Family Housing Construction (except For-Sale Builders)	1,807		0.4		1.0		1,566		0.3	0.9


			Percentage of Total				Percentage of Total
	Amortized Cost		Amortized Cost	Net Assets	Fair Value		Fair Value	Net Assets
Education Services

Professional and Management Development Training	$	1,595	0.3%	0.9%	$	953	0.2%	0.5%
Sports and Recreation Instruction	4,222		0.9	2.3	4,172		0.8	2.3





Health Care and Social Assistance

Child Day Care Services	6,375		1.3	3.5	6,182		1.2	3.4



Home Health Care Services	4,210		0.9	2.3	3,987		0.8	2.2
Medical Laboratories	17		—	—	35		—	—
Offices of Physicians, Mental Health Specialists	13,299		2.8	7.4	13,119		2.6	7.3
Other Ambulatory Health Care Services	16,444		3.5	9.1	15,604		3.1	8.6

Outpatient Mental Health and Substance Abuse Centers	8,787		1.9	4.9	8,675		1.7	4.8

Services for the Elderly and Persons with Disabilities	18,977		4.0	10.5	18,427		3.7	10.2
Information


Cable and Other Subscription Programming	3,763		0.8	2.1	3,103		0.6	1.7
Data Processing, Hosting, and Related Services	4,080		0.9	2.3	3,477		0.7	1.9
Directory and Mailing List Publishers	3,910		0.8	2.2	3,930		0.8	2.2
Internet Publishing and Broadcasting and Web Search Portals	3,100		0.7	1.7	2,843		0.6	1.6



Software Publishers	17,577		3.7	9.7	9,629		1.9	5.3
Television Broadcasting	2,182		0.5	1.2	488		0.1	0.3

Management of Companies and Enterprises
Offices of Other Holding Companies	11,240		2.4	6.2	10,646		2.1	5.9
Manufacturing
Bare Printed Circuit Board Manufacturing	1,977		0.4	1.1	1,854		0.4	1.0


Current-Carrying Wiring Device Manufacturing	3,360		0.7	1.9	3,468		0.7	1.9

Fluid Power Pump and Motor Manufacturing	1,931		0.4	1.1	1,862		0.4	1.0
Ice Cream and Frozen Dessert Manufacturing	1,641		0.3	0.9	1,540		0.3	0.9
Motorcycle, Bicycle, and Parts Manufacturing	15,873		3.3	8.8	15,942		3.2	8.8


Other Aircraft Parts and Auxiliary Equipment Manufacturing	500		0.1	0.3	—		—	—

Other Industrial Machinery Manufacturing	5,203		1.1	2.9	4,660		0.9	2.6



Pharmaceutical Preparation Manufacturing	217		—	0.1	85,456		17.1	47.4









Other Services (except Public Administration)


Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance	572		0.1	0.3	1,890		0.4	1.0
Communication Equipment Repair and Maintenance	1,766		0.4	1.0	1,572		0.3	0.9
Other Automotive Mechanical and Electrical Repair and Maintenance	1,083		0.2	0.6	1,064		0.2	0.6


			Percentage of Total				Percentage of Total
	Amortized Cost		Amortized Cost	Net Assets	Fair Value		Fair Value	Net Assets
Professional, Scientific, and Technical Services
Administrative Management and General Management Consulting Services	$	27,621	5.8%	15.3%	$	27,148	5.4%	15.0%
Advertising Agencies	2,256		0.5	1.3	1,898		0.4	1.1

Computer Systems Design Services	1,959		0.4	1.1	1,943		0.4	1.1




Other Computer Related Services	14,595		3.1	8.1	14,868		3.0	8.2




Public Administration
Other Justice, Public Order, and Safety Activities	703		0.1	0.4	32		—	—

Real Estate and Rental and Leasing


Nonresidential Property Managers	4,680		1.0	2.6	4,207		0.8	2.3
Office Machinery and Equipment Rental and Leasing	6,418		1.4	3.6	6,713		1.3	3.7

Retail Trade


Electronic Shopping and Mail-Order Houses	6,747		1.4	3.7	6,515		1.3	3.6
Electronics and Appliance Stores	8,037		1.7	4.5	8,102		1.6	4.5
Shoe Store	10,160		2.1	5.6	1,104		0.2	0.6

Supermarkets and Other Grocery (except Convenience) Stores	5,647		1.2	3.1	5,532		1.1	3.1

All Other General Merchandise Stores	499		0.1	0.3	967		0.2	0.5
Transportation and Warehousing




Transportation and Warehousing	2,514		0.5	1.4	2,501		0.5	1.4
Wholesale Trade
Business to Business Electronic Markets	2,858		0.6	1.6	2,689		0.5	1.5
Computer and Computer Peripheral Equipment and Software Merchant Wholesalers	11,156		2.3	6.2	9,013		1.8	5.0

Drugs and Druggists' Sundries Merchant Wholesalers	5,227		1.1	2.9	4,622		0.9	2.6

Industrial Machinery and Equipment Merchant Wholesalers	9,071		1.9	5.0	9,073		1.8	5.0


Motor Vehicle Parts (Used) Merchant Wholesalers	27,751		5.8	15.4	27,821		5.6	15.4

Other Miscellaneous Nondurable Goods Merchant Wholesalers	2,680		0.6	1.5	2,246		0.4	1.2
Sporting and Recreational Goods and Supplies Merchant Wholesalers	8,163		1.7	4.4	122		—	0.1

Total debt and equity investments	$	372,403	78.4%	206.4%	412,058		82.3%	228.3%
Structured Finance Securities	102,477		21.6	56.8	88,518		17.7	49.1
Total investments	$	474,880	100.0%	263.2%	500,576		100.0%	277.4%

As of December 31, 2021, the Company had loans to 58 portfolio companies, of which 95% were senior secured loans and 5% were subordinated loans, at fair value, as well as equity investments in five of these portfolio companies. The Company also held an equity investment in 12 portfolio companies in which it did not hold a debt investment, as well as 17 investments in Structured Finance Securities. At December 31, 2021, the Company’s investments consisted of the following:


			Percentage of Total						Percentage of Total
	Amortized Cost		Amortized Cost		Net Assets		Fair Value		Fair Value		Net Assets
Senior secured debt investments	$	336,132	73.3	%	165.0	%	$	326,704	64.9	%	160.4	%
Subordinated debt investments	22,071		4.8		10.8		17,943		3.5		8.8
Preferred equity	9,552		2.1		4.7		3,765		0.7		1.8
Common equity, warrants and other	14,606		3.2		7.2		83,486		16.5		41.0
Total debt and equity investments	$	382,361	83.4	%	187.7	%	$	431,898	85.6	%	212.0	%
Structured Finance Securities	74,951		16.6		36.8		75,201		14.4		36.9
Total	$	457,312	100.0	%	224.5	%	$	507,099	100.0	%	248.9	%

At December 31, 2021, the Company had two loans on non-accrual status with respect to all interest and Net Loan Fee amortization, with an aggregate amortized cost and fair value of $19,054 and $7,726, respectively.

As of December 31, 2021, the industry compositions of the Company’s debt and equity investments were as follows:


			Percentage of Total						Percentage of Total
	Amortized Cost		Amortized Cost		Net Assets		Fair Value		Fair Value		Net Assets
Administrative and Support and Waste Management and Remediation Services
Convention and Trade Show Organizers	$	214	—	%	0.1	%	$	12	—	%	—	%
Hazardous Waste Treatment and Disposal	1,833		0.4		0.9		1,837		0.4		0.9
Landscaping Services	4,630		1.0		2.3		4,590		0.9		2.3

Security Systems Services (except Locksmiths)	4,827		1.1		2.4		4,887		1.0		2.4


Arts, Entertainment, and Recreation

Other Amusement and Recreation Industries	16,287		3.6		8.0		16,396		3.2		8.0
Construction
Electrical Contractors and Other Wiring Installation Contractors	18,132		4.0		8.9		11,632		2.3		5.7
New Single-Family Housing Construction (except For-Sale Builders)	1,823		0.4		0.9		1,794		0.4		0.9
Plumbing, Heating, and Air-Conditioning Contractors	5,344		1.2		2.6		5,378		1.1		2.6
Water and Sewer Line and Related Structures Construction	627		0.1		0.3		628		0.1		0.3
Education Services
Colleges, Universities, and Professional Schools	—		—		—		7,408		1.5		3.6
Professional and Management Development Training	1,595		0.3		0.8		1,095		0.2		0.5
Sports and Recreation Instruction	3,011		0.7		1.5		3,011		0.6		1.5





Health Care and Social Assistance

Child Day Care Services	6,336		1.4		3.1		5,916		1.2		2.9



Home Health Care Services	4,182		0.9		2.1		4,250		0.8		2.1
Medical Laboratories	92		—		—		25		—		—
Offices of Physicians, Mental Health Specialists	13,402		2.9		6.6		13,491		2.7		6.6


			Percentage of Total						Percentage of Total
	Amortized Cost		Amortized Cost		Net Assets		Fair Value		Fair Value		Net Assets
Other Ambulatory Health Care Services	$	20,331	4.4	%	10.0	%	$	20,331	4.0	%	10.0	%

Outpatient Mental Health and Substance Abuse Centers	4,770		1.0		2.3		5,231		1.0		2.6

Services for the Elderly and Persons with Disabilities	6,416		1.4		3.1		6,416		1.3		3.1
Information
All Other Publishers	2,288		0.5		1.1		2,303		0.5		1.1
All Other Telecommunications	3,429		0.7		1.7		3,323		0.7		1.6
Cable and Other Subscription Programming	3,801		0.8		1.9		3,810		0.8		1.9
Data Processing, Hosting, and Related Services	4,112		0.9		2.0		4,255		0.8		2.1
Directory and Mailing List Publishers	2,004		0.4		1.0		2,085		0.4		1.0
Internet Publishing and Broadcasting and Web Search Portals	3,249		0.7		1.6		3,299		0.7		1.6
Motion Picture and Video Production	3,929		0.9		1.9		3,970		0.8		1.9


Software Publishers	24,948		5.5		12.2		17,929		3.5		8.8
Television Broadcasting	1,957		0.4		1.0		918		0.2		0.5
Wired Telecommunications Carriers	4,388		1.0		2.2		4,405		0.9		2.2
Management of Companies and Enterprises
Offices of Other Holding Companies	5,336		1.2		2.6		5,336		1.1		2.6
Manufacturing
Bare Printed Circuit Board Manufacturing	1,985		0.4		1.0		1,977		0.4		1.0

Commercial Printing (except Screen and Books)	3,427		0.7		1.7		3,436		0.7		1.7
Current-Carrying Wiring Device Manufacturing	2,653		0.6		1.3		2,954		0.6		1.4

Motorcycle, Bicycle, and Parts Manufacturing	15,166		3.3		7.4		15,166		3.0		7.4
Metal Can Manufacturing	2,143		0.5		1.1		2,167		0.4		1.1

Other Aircraft Parts and Auxiliary Equipment Manufacturing	500		0.1		0.2		80		—		—

Other Industrial Machinery Manufacturing	12,121		2.7		5.9		12,176		2.4		6.0



Pharmaceutical Preparation Manufacturing	217		—		0.1		65,740		13.0		32.3




Small Electrical Appliance Manufacturing	4,997		1.1		2.5		4,997		1.0		2.5

Travel Trailer and Camper Manufacturing	11,264		2.5		5.5		12,948		2.6		6.4


Other Services (except Public Administration)


Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance	572		0.1		0.3		988		0.2		0.5


Professional, Scientific, and Technical Services
Administrative Management and General Management Consulting Services	22,990		5.0		11.3		22,634		4.5		11.1

All Other Professional, Scientific, and Technical Services	2,872		0.6		1.4		2,865		0.6		1.4


Management Consulting Services	2,251		0.5		1.1		2,264		0.4		1.1

Other Accounting Services	19,631		4.3		9.6		19,927		3.9		9.8
Other Computer Related Services	15,017		3.3		7.4		15,260		3.0		7.5


			Percentage of Total						Percentage of Total
	Amortized Cost		Amortized Cost		Net Assets		Fair Value		Fair Value		Net Assets
Public Administration
Other Justice, Public Order, and Safety Activities	$	703	0.2	%	0.3	%	$	29	—	%	—	%

Real Estate and Rental and Leasing


Nonresidential Property Managers	2,972		0.6		1.5		2,972		0.6		1.5
Office Machinery and Equipment Rental and Leasing	5,952		1.3		2.9		2,774		0.5		1.4

Retail Trade
Automotive Parts and Accessories Stores	2,688		0.6		1.3		2,704		0.5		1.3
Cosmetics, Beauty Supplies, and Perfume Stores	1,533		0.3		0.8		1,531		0.3		0.8
Electronic Shopping and Mail-Order Houses	6,913		1.5		3.4		6,870		1.4		3.4
Shoe Store	9,893		2.2		4.9		9,342		1.8		4.6
Sporting Goods Stores	1,958		0.4		1.0		1,972		0.4		1.0


All Other General Merchandise Stores	499		0.1		0.2		1,698		0.3		0.8
Transportation and Warehousing
Freight Transportation Arrangement	1,960		0.4		1.0		1,970		0.4		1.0

Scheduled Passenger Air Transportation	360		0.1		0.2		377		0.1		0.2

Wholesale Trade
Business to Business Electronic Markets	2,875		0.6		1.4		2,838		0.6		1.4
Computer and Computer Peripheral Equipment and Software Merchant Wholesalers	7,173		1.6		3.5		6,903		1.4		3.4

Drugs and Druggists' Sundries Merchant Wholesalers	5,529		1.2		2.7		5,550		1.1		2.7

Industrial Machinery and Equipment Merchant Wholesalers	9,071		2.0		4.5		9,073		1.8		4.5


Motor Vehicle Parts (Used) Merchant Wholesalers	23,005		5.0		11.3		23,052		4.5		11.3

Sporting and Recreational Goods and Supplies Merchant Wholesalers	8,179		1.8		3.9		699		0.1		0.2

Total debt and equity investments	$	382,361	83.4	%	187.7	%	$	431,898	85.6	%	212.0	%
Structured Finance Securities	74,951		16.6		36.8		75,201		14.4		36.9
Total investments	$	457,312	100.0	%	224.5	%	$	507,099	100.0	%	248.9	%

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Investments

The Company’s investments are carried at fair value and determined in accordance with a documented valuation policy that is applied in a consistent manner. On September 7, 2022, pursuant to Rule 2a-5, the Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to the Company’s investments, commencing with the quarter ended September 30, 2022. In order for the Board to maintain oversight, OFS Advisor implemented the requirements as prescribed in Rule 2a-5.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined with models or other valuation techniques, valuation inputs, and assumptions market participants would use in pricing an asset or liability. Valuation inputs are organized

in a hierarchy that gives the highest priority to prices for identical assets or liabilities quoted in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of inputs in the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active; (iii) inputs other than quoted prices that are observable for the asset or liability; and (iv) inputs that are derived principally from or corroborated by observable market data.

Level 3: Unobservable inputs for the asset or liability, and situations where there is little, if any, market activity for the asset or liability at the measurement date.

The inputs into the determination of fair value are based upon the best information under the circumstances and may require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The Company generally categorizes its investment portfolio into Level 3, and to a lesser extent Level 2, of the hierarchy.

The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the measurement date. The following table presents the Company’s transfers of Level 2 and Level 3 loans for the years ended December 31, 2022 and 2021, respectively:


	Year Ended December 31,
	2022		2021
Transfers from Level 2 to Level 3	$	3,218	$	—
Transfers from Level 3 to Level 2	—		—

Certain of the Company's investments are exchanged in the non-public market among banks, CLOs and other institutional investors for loans to large U.S. corporations. The Company classifies these loan investments as Level 2 when a sufficient number of market quotations or indicative prices from pricing services or broker/dealers (collectively, “Indicative Prices”) are available, and the depth of the market is sufficient to transact at those prices in amounts approximating the Company's investment position at the measurement date. Investments for which sufficient Indicative Prices exist are generally valued consistent with such Indicative Prices.

In addition, each quarter, the Company assesses whether an arm’s length transaction occurred in the same security, including the Company's new investments during the quarter, the cost of which (“Transaction Prices”), may be considered a reasonable indication of fair value generally up to three months after the transaction date. Senior secured debt investments with a fair value of $0 and $72,572, respectively, were valued at their Transaction Price at December 31, 2022 and December 31, 2021.

Investments that are not valued using Indicative Prices or Transaction Prices are typically valued using two different valuation techniques. The Company typically estimates the fair value of debt investments by a discounted cash flows technique in which a current price is imputed for the investment based upon an assessment of the expected market yield (or discount rate) for similarly structured investments with a similar level of risk. The Company considers the current contractual interest rate, the maturity and other terms of the investment relative to risk of the portfolio company and various market indices. A key determinant of portfolio-company risk is the leverage through the investment relative to earnings metrics of the portfolio company.

The fair value of Structured Finance Securities are also estimated primarily by discounted cash flow techniques. In valuing such investments, the Company considers CLO performance metrics, including prepayment rates, default rates, loss-on-default and recovery rates, and other metrics, as well as estimated market yields provided by a recognized industry pricing service as a primary source for discounted cash flow fair value estimates, supplemented by actual trades executed in the market at or around period-end, as well as the indicative prices provided by broker-dealers in its estimate of the fair value of such investments. The

Company also considers the operating metrics of the CLO vehicle, including compliance with collateralization tests, concentration limits and restructuring activity, if applicable.

The fair value of the Company’s equity investments as well as certain of its non-performing debt investments are estimated through analysis of the portfolio company's enterprise value under a market approach. Enterprise value means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining enterprise value under the market approach involves multiple analyses whereby appropriate multiples are applied to an earnings metric of the portfolio company, typically earnings before net interest expense, income tax expense, depreciation and amortization (“EBITDA”). EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Company may also utilize other portfolio-company earnings metrics to determine enterprise value, such as recurring monthly revenue or a delineated measure of portfolio company EBITDA. Application of these valuation methodologies involves a significant degree of judgment by management.

Due to the inherent uncertainty of determining the fair value of Level 3 investments, the fair value of the investments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions, or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company might realize significantly less than the value at which such investment had previously been recorded. The Company’s investments are subject to market risk as a result of economic and political developments, including impacts from rising interest rates and inflation rates, the ongoing war between Russia and Ukraine, the continuing COVID-19 pandemic, and the risk of recession and related market volatility. Market risk is directly impacted by the volatility and liquidity in the markets in which certain investments are traded and can affect the fair value of the Company's investments.

The following tables present the Company's investment portfolio measured at fair value on a recurring basis as of December 31, 2022 and 2021, respectively.


Security	Level 1		Level 2		Level 3		Fair Value at December 31, 2022
Debt investments	$	—	$	30,823	$	282,039	$	312,862
Equity investments	—		—		99,196		99,196
Structured Finance Securities	—		—		88,518		88,518
	$	—	$	30,823	$	469,753	$	500,576


Security	Level 1		Level 2		Level 3		Fair Value at December 31, 2021
Debt investments	$	—	$	65,591	$	279,056	$	344,647
Equity investments	—		—		87,251		87,251
Structured Finance Securities	—		—		75,201		75,201
	$	—	$	65,591	$	441,508	$	507,099

The following tables provide quantitative information about the Company’s significant unobservable inputs to the Company’s Level 3 fair value measurements as of December 31, 2022 and 2021.

Fair Value at December 31, 2022

Valuation technique

Unobservable inputs

Range
(Weighted average)

Debt investments:

Senior secured

264,702

Discounted cash flow

Discount rates

10.21% - 20.71% (12.94%)

Senior secured

16,110

Market approach

Revenue multiples

0.46x - 0.70x (0.56x)

Subordinated

1,226

Market approach

EBITDA multiples

10.50x - 10.50x (10.50x)

Structured Finance Securities:

Subordinated notes(1)

53,688

Discounted cash flow

Discount rates

12.50% - 34.00% (22.14%)

Constant default rate

2.00% - 2.00% (2.00%)

Recovery rate

65.00% - 65.00% (65.00%)

Mezzanine debt

26,413

Discounted cash flow

Discount margin

7.25% - 11.60% (8.58%)

Constant default rate

2.00% - 3.00% (2.03%)

Recovery rate

65.00% - 65.00% (65.00%)

Subordinated notes

118

Market approach

Net asset value liquidation(2)

Loan accumulation facility

8,299

Market approach

Probability weighted NAV analysis

Equity investments:

Preferred equity

6,202

Market approach

EBITDA multiples

7.25x - 7.25x (7.25x)

Preferred equity

1,901

Market approach

Revenue multiples

0.15x - 0.87x (0.87x)

Common equity, warrants and other

91,070

Market approach

EBITDA multiples

3.72x - 11.75x (9.63x)

Common equity, warrants and other

Market approach

Revenue multiples

0.15x - 0.87x (0.15x)

469,753

(1) The cash flows utilized in the discounted cash flow calculations assume: (i) liquidation of (a) certain distressed investments and (b) all investments currently in default held by the issuing CLO at their current market prices; and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.

(2) NAV liquidation represents the fair value, or estimated expected residual value, of the investment.

Fair Value at December 31, 2021

Valuation technique

Unobservable inputs

Range
(Weighted average)

Debt investments:

Senior secured

178,382

Discounted cash flow

Discount rates

6.47% - 12.32% (9.25%)

Senior secured

11,632

Market approach

EBITDA multiples

7.09x - 7.09x (7.09x)

Senior secured

7,027

Market approach

Revenue multiples

0.74x - 0.74x (0.74x)

Senior secured

64,072

Market approach

Transaction Price

Subordinated

17,244

Discounted cash flow

Discount rates

15.90% - 17.49% (16.65%)

Subordinated

699

Market approach

Revenue multiples

0.28x - 0.28x (0.28x)

Structured Finance Securities:

Subordinated notes(1)

63,922

Discounted cash flow

Discount rates

8.00% - 16.00% (12.39%)

Constant default rate(2)

0.00% - 2.00% (1.77%)

Constant default rate(3)

2.00% - 2.00% (2.00%)

Recovery rate

60.00% - 60.00% (60.00%)

Mezzanine debt

2,779

Discounted cash flow

Discount Margin

7.10% - 8.95% (7.91%)

Constant default rate(2)

2.00% - 3.00% (2.36%)

Constant default rate(3)

2.00% - 3.00% (2.36%)

Recovery rate

60.00% - 60.00% (60.00%)

Loan accumulation facility

8,500

Market approach

Transaction Price

Equity investments:

Preferred equity

2,748

Market approach

EBITDA multiples

7.80x - 7.80x (7.80x)

Preferred equity

1,017

Market approach

Revenue multiples

0.15x - 3.00x (0.91x)

Common equity and warrants

83,478

Market approach

EBITDA multiples

4.50x - 12.00x (8.10x)

Common equity and warrants

Market approach

Revenue multiples

0.15x - 3.00x (0.15x)

441,508

(2) Constant default rates for the six months ended June 30, 2022.

(3) Constant default rates for the period between June 30, 2022, and the assumed optional redemptions of the instruments.

Changes in market credit spreads or events impacting the credit quality of the underlying portfolio company (both of which could impact the discount rate), as well as changes in EBITDA and/or EBITDA multiples, among other things, could have a significant impact on fair values, with the fair value of a particular debt investment susceptible to change in inverse relation to the changes in the discount rate. Changes in EBITDA and/or EBITDA multiples, as well as changes in the discount rate, could have a significant impact on fair values, with the fair value of an equity investment susceptible to change in tandem with the changes in EBITDA and/or EBITDA multiples, and in inverse relation to changes in the discount rate. Due to wide range of approaches towards developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

The following tables present changes in investments measured at fair value using Level 3 inputs for the years ended December 31, 2022 and 2021:


	Year Ended December 31, 2022
	Senior Secured Debt Investments		Subordinated Debt Investments		Preferred Equity		Common Equity and Warrants		Structured Finance Securities		Total
Level 3 assets, December 31, 2021	$	261,113	$	17,943	$	3,765	$	83,486	$	75,201	$	441,508
Net realized loss on investments	(336)		—		(51)		(325)		—		(712)
Net change in unrealized appreciation (depreciation) on investments	(9,370)		(8,536)		4,016		9,133		(14,209)		(18,966)
Amortization of net loan origination fees	1,332		6		—		—		244		1,582
Accretion of interest income on Structured Finance Securities	—		—		—		—		10,656		10,656
Capitalized PIK interest and dividends	452		58		466		—		—		976
Amendment fees	(206)		—		—		—		—		(206)
Purchase and origination of portfolio investments	92,329		—		—		2,240		43,198		137,767
Proceeds from principal payments on portfolio investments	(59,329)		(8,245)		—		—		(14,399)		(81,973)
Sale and redemption of portfolio investments	(8,390)		—		—		(3,534)		—		(11,924)
Distributions received from Structured Finance Securities	—		—		—		—		(12,173)		(12,173)

Transfers from Level 2 to Level 3	3,218		—		—		—		—		3,218
Level 3 assets, December 31, 2022	$	280,813	$	1,226	$	8,196	$	91,000	$	88,518	$	469,753


	Year Ended December 31, 2021
	Senior Secured Debt Investments		Subordinated Debt Investments		Preferred Equity		Common Equity and Warrants		Structured Finance Securities		Total
Level 3 assets, December 31, 2020	$	284,078	$	15,067	$	11,543	$	52,984	$	56,425	$	420,097
Net realized gain (loss) on investments	(265)		(23,676)		3,310		(49)		—		(20,680)
Net change in unrealized appreciation (depreciation) on investments	10,780		26,214		1,318		31,355		(314)		69,353
Amortization of net loan origination fees	2,092		24		—		—		73		2,189
Accretion of interest income on Structured Finance Securities	—		—		—		—		9,861		9,861
Capitalized PIK interest, dividends, and fees	1,472		526		143		—		—		2,141
Purchase and origination of portfolio investments	167,720		—		—		200		30,412		198,332
Proceeds from principal payments on portfolio investments	(172,661)		(121)		—		—		—		(172,782)
Sale and redemption of portfolio investments	(27,381)		(91)		(12,549)		(5,726)		(8,600)		(54,347)
Distributions received from Structured Finance Securities	—		—		—		—		(12,656)		(12,656)
Conversion from debt investment to equity investment (Note 4)	(4,722)		—		—		4,722		—		—
Level 3 assets, December 31, 2021	$	261,113	$	17,943	$	3,765	$	83,486	$	75,201	$	441,508

The net unrealized appreciation (depreciation) reported in the Company’s consolidated statements of operations for the years ended December 31, 2022 and 2021, attributable to the Company’s Level 3 assets still held at those respective year ends was as

follows:


	Year Ended December 31,
	2022		2021
Senior secured debt investments	$	(9,411)	$	3,637
Subordinated debt investments	(8,536)		4,977
Preferred equity	3,952		(73)
Common equity, warrants and other	17,740		30,208
Structured Finance Securities	(14,162)		(302)
Net unrealized appreciation (depreciation) on investments held	$	(10,417)	$	38,447

Other Financial Assets and Liabilities

GAAP requires disclosure of the fair value of financial instruments not reported at fair value on a recurring basis for which it is practical to estimate such values. The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such financial instruments. The senior secured revolving credit facility between the Company and Pacific Western Bank, as lender (“PWB Credit Facility”) and the secured revolving credit facility that provides for borrowings in an aggregate principal amount up to $150,000 issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equity holder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator (“BNP Facility”) are variable rate instruments and fair value is approximately book value.

The following tables present the fair value measurements of the Company’s debt and the level within the fair value hierarchy of the significant unobservable inputs used to determine such fair values as of December 31, 2022 and 2021:


	December 31, 2022
Description	Level 1(1)		Level 2		Level 3(2)		Total
PWB Credit Facility	$	—	$	—	$	—	$	—
BNP Facility	—		—		104,700		104,700
OFS Capital Corporation 4.75% Notes due 2026	—		—		109,037		109,037
OFS Capital Corporation 4.95% Notes due 2028	47,058		—		—		47,058
SBA-guaranteed debentures	—		—		49,470		49,470
Total debt	$	47,058	$	—	$	263,207	$	310,265


	December 31, 2021
Description	Level 1(1)		Level 2		Level 3(2)		Total
PWB Credit Facility	$	—	$	—	$	—	$	—
BNP Facility	—		—		100,000		100,000
OFS Capital Corporation 4.75% Notes due 2026	—		—		123,130		123,130
OFS Capital Corporation 4.95% Notes due 2028	56,430		—		—		56,430
SBA-guaranteed debentures	—		—		73,011		73,011
Total debt	$	56,430	$	—	$	296,141	$	352,571

(1) For Level 1 measurements, fair value is estimated by using the closing price of the security on the Nasdaq Global Select Market.

(2) For Level 3 measurements, fair value is estimated through discounting remaining payments using current market rates for similar instruments at the measurement date through the legal maturity date.

The following are the carrying values and fair values of the Company’s debt as of December 31, 2022 and 2021:


	As of December 31, 2022				As of December 31, 2021
Description	Carrying Value(1)		Fair Value		Carrying Value(1)		Fair Value
PWB Credit Facility	$	—	$	—	$	—	$	—
BNP Facility	104,700		104,700		100,000		100,000
OFS Capital Corporation 4.75% Notes due 2026	122,547		109,037		121,774		123,130
OFS Capital Corporation 4.95% Notes due 2028	53,806		47,058		53,672		56,430
SBA-guaranteed debentures	50,697		49,470		69,365		73,011
Total debt	$	331,750	$	310,265	$	344,811	$	352,571

(1) Carrying value is calculated as the outstanding principal amount less unamortized deferred debt issuance costs. See Note 2 for details.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company had outstanding commitments to fund investments totaling $32,157 and $43,690 under various undrawn revolvers and other credit facilities as of December 31, 2022 and 2021, respectively. Legal and regulatory proceedings: From time to time, the Company is involved in legal proceedings in the normal course of its business. Although the outcome of such litigation cannot be predicted with any certainty, management is of the opinion, based on the advice of legal counsel, that final disposition of any litigation should not have a material adverse effect on the financial position of the Company as of December 31, 2022. Additionally, the Company is subject to periodic inspection by regulators to assess compliance with applicable BDC regulations and the SBIC I LP is subject to periodic inspections by the SBA. Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company believes the risk of any material obligation under these indemnifications to be low.

Borrowings

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Borrowings

SBA Debentures: The SBIC Program enabled SBIC I LP to obtain leverage by issuing SBA-guaranteed debentures, subject to issuance of a capital commitment by the SBA and customary procedures. These debentures are non-recourse to the Company, have interest payable semi-annually and a ten-year maturity. The interest rate is fixed at the time of SBA pooling, which is March and September of each year, at a market-driven spread over U.S. Treasury Notes with ten-year maturities.

The Company received exemptive relief from the SEC effective November 26, 2013, which permits the Company to exclude SBA guaranteed debentures from the definition of senior securities in the statutory asset coverage ratio under the 1940 Act, allowing for greater capital deployment.

During the year ended December 31, 2022, SBIC I LP redeemed $19,000 of SBA debentures that were contractually due March 1, 2025 and September 1, 2025. The Company recognized losses on extinguishment of debt of $144 related to the acceleration of unamortized deferred borrowing costs on the redeemed debentures. As of December 31, 2022 and 2021, SBIC I LP had outstanding SBA debentures of $50,920 and $69,920, respectively.

On a stand-alone basis, SBIC I LP held $176,521 and $195,502 in assets at December 31, 2022 and 2021, respectively, which accounted for approximately 34% and 34% of the Company’s total consolidated assets, respectively. These assets cannot be pledged under any non-SBA debt obligation of the Company.

The following table shows the Company’s outstanding SBA debentures payable as of December 31, 2022 and 2021:


		Fixed Interest Rate		SBA debentures outstanding
Pooling Date	Maturity Date			December 31, 2022		December 31, 2021
March 25, 2015	March 1, 2025	2.872	%	$	50,920	$	65,920
September 23, 2015	September 1, 2025	3.184		—		4,000
SBA debentures outstanding				50,920		69,920
Unamortized debt issuance costs				(223)		(555)
SBA debentures outstanding, net of unamortized debt issuance costs				$	50,697	$	69,365

For the years ended December 31, 2022, 2021 and 2020, the components of interest expense, cash paid for interest, effective interest rates and average outstanding balances for the SBA debentures were as follows:


	Years Ended December 31,
	2022			2021			2020
Stated interest expense	$	1,552		$	2,627		$	4,070
Amortization of debt issuance costs	188			209			332
Total interest and debt financing costs	$	1,740		$	2,836		$	4,402
Cash paid for interest expense	$	1,739		$	2,978		$	4,830
Effective interest rate	3.22		%	3.27		%	3.31		%
Average outstanding balance	$	53,991		$	86,710		$	132,803

Unsecured Notes: The unsecured notes totaled $180,000 and $180,000 in aggregate principal debt at December 31, 2022 and 2021, respectively.

Issuances during the year ended December 31, 2021

On February 10, 2021, the Company closed the public offering of $100,000 aggregate principal amount of its 4.75% notes due 2026, and on March 18, 2021, the Company closed an additional public offering of $25,000 aggregate principal amount of its 4.75% notes due 2026 (the "Unsecured Notes Due February 2026"). The total net proceeds to the Company from the Unsecured Notes Due February 2026, after deducting underwriting fees and offering expenses of $3,936, was approximately $121,064.

On October 28, 2021 and November 1, 2021, the Company closed the public offering of $55,000 aggregate principal amount of its 4.95% notes due 2028 (the “Unsecured Notes Due October 2028”), which included a full exercise of the underwriters overallotment option. The total net proceeds to the Company, after deducting underwriting discounts and offering expenses of $1,389, was approximately $53,611.

Redemptions during the year ended December 31, 2021

On March 12, 2021, the Company redeemed all of its $50,000 aggregate principal amount of 6.375% notes due April 30, 2025 (the “Unsecured Notes Due April 2025”) and $48,525 aggregate principal amount of 6.50% notes due October 30, 2025 (the “Unsecured Notes Due October 2025”).

On November 1, 2021, the Company redeemed all of its $25,000 aggregate principal amount of 6.25% notes due September 30, 2023 (“Unsecured Notes Due September 2023”).

On November 22, 2021, the Company redeemed all of its $54,325 aggregate principal amount of 5.95% notes due October 31, 2026 (the “Unsecured Notes Due October 2026”).

During the year ended December 31, 2021, the Company recognized a loss on extinguishment of $4,267 related to the acceleration of unamortized deferred borrowing costs on the redemption of unsecured notes.

The Unsecured Notes Due February 2026, the Unsecured Notes Due October 2028, the Unsecured Notes Due April 2025, the Unsecured Notes Due October 2025, the Unsecured Notes Due September 2023 and Unsecured Notes Due October 2026, combined (the “Unsecured Notes”), of which the Unsecured Notes Due February 2026 and the Unsecured Notes Due October 2028 were outstanding at December 31, 2021, are direct unsecured obligations and rank equal in right of payment with all current and future unsecured indebtedness of the Company. Because the Unsecured Notes are not secured by any of the

Company’s assets, they are effectively subordinated to all existing and future secured unsubordinated indebtedness (or any indebtedness that is initially unsecured as to which the Company subsequently grant a security interest), to the extent of the value of the assets securing such indebtedness, including, without limitation, borrowings under the PWB Credit Facility and BNP Facility.

The indenture governing the Unsecured Notes contains certain covenants: (i) prohibiting additional borrowings, including through the issuance of additional debt securities, unless the Company's asset coverage, as defined in the 1940 Act, after giving effect to any exemptive relief granted to the Company by the SEC, equals at least 150% after such borrowings; and (ii) prohibiting (a) the declaration of any cash dividend or distribution upon any class of the Company’s capital stock (except to the extent necessary for the Company to maintain its treatment as a RIC under Subchapter M of the Code), or (b) the purchase of any capital stock if the Company’s asset coverage, as defined in the 1940 Act, were below 150% at the time of such capital transaction and after deducting the amount of such transaction.


	Years Ended December 31,
	2022			2021			2020
Stated interest expense	$	8,663		$	11,160		$	10,044
Amortization of debt issuance costs	1,029			1,403			909
Total interest and debt financing costs	$	9,692		$	12,563		$	10,953
Cash paid for interest expense	$	8,683		$	10,384		$	9,645
Effective interest rate	5.38		%	6.03		%	6.84		%
Average outstanding balance	$	180,000		$	208,240		$	160,022

As of December 31, 2022, the Unsecured Notes had the following terms and balances:


Unsecured Notes	Principal		Unamortized Discount and Issuance Costs		Stated Interest Rate(1)		Effective Interest Rate(2)		Maturity(3)
Unsecured Notes Due February 2026	$	125,000	$	2,452	4.75	%	5.39	%	2/10/2026
Unsecured Notes Due October 2028	55,000		1,195		4.95	%	5.32	%	10/31/2028
Total	$	180,000	$	3,647

(1) The weighted-average fixed cash interest rate on the Unsecured Notes as of December 31, 2022 was 4.81%.

(2) The effective interest rate on the Unsecured Notes includes deferred debt issuance cost amortization.

(3) The Company may redeem the Unsecured Notes Due February 2026 in whole or in part at any time, or from time to time, at its option at par plus a “make-whole” premium, if applicable. The Company may redeem the Unsecured Notes Due October 2028 in whole or in part at any time, or from time to time, at its option on or after October 31, 2023.

PWB Credit Facility: The Company is party to a business loan agreement (“BLA”) with Pacific Western Bank, as lender, to provide the Company with a $25,000 senior secured revolving credit facility. The PWB Credit Facility is available for general corporate purposes including investment funding and is scheduled to mature on February 28, 2024. The maximum availability of the PWB Credit Facility is equal to 50% of the aggregate outstanding principal amount of eligible loans included in the borrowing base, which excludes subordinated loan investments and as otherwise specified in the BLA. The PWB Credit Facility is guaranteed by OFSCC-MB and secured by all of our current and future assets excluding assets held by SBIC I LP, OFSCC-FS, and the Company’s partnership interests in SBIC I LP and SBIC I GP.

The PWB Credit Facility bears interest at a variable rate of the Prime Rate plus a 0.25% margin, with a 4.00% floor, and includes an unused commitment fee for any unused portion in excess of $15,000, payable monthly in arrears, equal to 0.50% per annum on any unused portion. As of December 31, 2022, the stated interest rate of the PWB Credit Facility was 7.75%. At December 31, 2022, the PWB Credit Facility’s effective interest rate, including deferred financing cost amortization and unused fees, was 7.97%.

Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2022 and 2021, were $1 and $6, respectively.

As of December 31, 2022 and 2021, the Company had $0 and $0 outstanding debt under the PWB Credit Facility, respectively, and $25,000 and $25,000 of availability under the terms of the borrowing base, respectively.

On February 17, 2021, the Company amended the PWB Credit Facility to among other things: (i) increase the maximum amount available from $20,000 to $25,000; (ii) decrease the interest rate floor from 5.25% per annum to 5.00% per annum; (iii) modify certain financial performance covenants; and (iv) extend the maturity date from February 28, 2021 to February 28, 2023.

On November 15, 2021, the Company amended the PWB Credit Facility to decrease the interest rate floor from 5.0% to 4.0%, effective as of November 1, 2021.

On April 22, 2022, the Company amended the PWB Credit Facility to: (i) increase the maximum amount available under the PWB Credit Facility from $25,000 to $35,000; and (ii) extend the maturity date of the PWB Credit Facility from February 28, 2023 to February 28, 2024.

On December 15, 2022, the Company amended the PWB Credit Facility to: (i) reduce the maximum amount available under the PWB Credit Facility from $35,000 to $25,000; and (ii) eliminate the No Net Losses covenant, which restricted net losses (defined as income after adjustments to the investment portfolio for gains and losses, realized and unrealized, also shown as net increase (decrease) in net assets resulting from operations) in more than two quarters during the prior four quarters then ended.

The BLA contains customary terms and conditions, including, without limitation, affirmative and negative covenants such as information reporting requirements, a minimum tangible net asset value, a minimum quarterly net investment income after incentive fees, and a ratio of total liabilities divided by NAV. The BLA also contains customary events of default, including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, cross-default to other indebtedness, bankruptcy, change in investment advisor, and the occurrence of a material adverse change in our financial condition.


	Years Ended December 31,
	2022			2021			2020
Stated interest expense(1)	$	128		$	101		$	1,060
Amortization of debt issuance costs	5			19			225
Total interest and debt financing costs	$	133		$	120		$	1,285
Cash paid for interest expense	$	131		$	81		$	1,144
Effective interest rate(2)	6.93		%	4.01		%	6.76		%
Average outstanding balance	$	714		$	1,810		$	15,222

(1) Stated interest expense includes unused fees.

(2) Unused fees were excluded from the calculation.

BNP Facility: OFSCC-FS is party to the BNP Facility, which provides for borrowings in an aggregate principal amount up to $150,000, of which $104,700 was drawn as of December 31, 2022. Borrowings under the BNP Facility bear interest of SOFR plus an applicable spread, which is determined on the basis of industry-recognized portfolio company metrics at the time of funding. The BNP Facility will mature on the earlier of June 20, 2027 or upon certain other events defined in the credit agreement which result in accelerated maturity. Borrowings under the BNP Facility are secured by substantially all of the assets held by OFSCC-FS, which were $173,692 and 185,105, or 33% and 33% of the Company's total consolidated assets at December 31, 2022 and 2021, respectively.

On June 24, 2022, OFSCC-FS amended the BNP Facility to, among other things: (i) extend the reinvestment period under the BNP Facility for three years from June 20, 2022 to June 20, 2025; (ii) extend the maturity date under the BNP Facility from June 20, 2024 to June 20, 2027; (iii) convert the benchmark interest rate from LIBOR to SOFR; (iv) increase the applicable margin by 0.40% on all classes of loans; and (v) increase the applicable margin floor from 1.925% to 2.65%.

As of December 31, 2022 and 2021, the Company had $104,700 and $100,000 outstanding debt under the BNP Facility, respectively, and $45,300 and $50,000 of availability under the terms of the borrowing base, respectively. OFSCC-FS also pays a non-usage fee up to 0.75% depending on the size of the unused portion of the BNP Facility.

At December 31, 2022, the cash interest rate on the BNP Facility was 7.05%.

OFSCC-FS incurred fees to the lenders as well as legal costs to establish and amend the BNP Facility, which are amortized over the life of the facility. Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2022 and 2021 were $1,315 and $665, respectively.


	Years Ended December 31,
	2022			2021			2020
Stated interest expense(1)	$	5,133		$	1,658		$	1,943
Amortization of debt issuance costs	327			338			225
Total interest and debt financing costs	$	5,460		$	1,996		$	2,168
Cash paid for interest expense	$	4,661		$	1,594		$	2,022
Effective interest rate	4.42		%	4.20		%	5.53		%
Average outstanding balance	$	123,632		$	47,481		$	39,182

(1) Stated interest expense includes unused fees.

The average dollar borrowings and average interest rate for all Company debt during the years ended December 31, 2022, 2021 and 2020, were as follows:


Year ended	Average Dollar Borrowings		Weighted Average Interest Rate
December 31, 2022	$	358,337	4.75	%
December 31, 2021	344,241		5.09
December 31, 2020	347,229		5.42

As of December 31, 2022, the Company's debt liabilities are scheduled to mature as follows:


	Principal Due by Year
Debt liabilities	Total		2023		2024		2025		2026		2027		Thereafter
PWB Credit Facility	$	—	$	—	$	—	$	—	$	—	$	—	$	—
BNP Facility	104,700		—		—		—		—		104,700		—
SBA Debentures	50,920		—		—		50,920		—		—		—
Unsecured Notes	180,000		—		—		—		125,000		—		55,000
Total	$	335,620	$	—	$	—	$	50,920	$	125,000	$	104,700	$	55,000

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Federal Income Tax

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Federal Income Tax

Federal Income Tax Filing status: The Company has elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain its status as a RIC, the Company is required to distribute annually to its stockholders at least 90% of its ICTI, as defined by the Code. Additionally, to avoid a 4% U.S. federal excise tax on undistributed earnings the Company is required to distribute each calendar year the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% of its net capital gains for the one-year period ending October 31 of that calendar year, and (iii) any income recognized, but not distributed, in preceding years and on which the Company paid no U.S. federal income tax. Maintenance of the Company's RIC status also requires adherence to certain source of income and asset diversification requirements.

OFSCC-MB, an entity taxed as a corporation under Subchapter C of the Code, is consolidated in the Company’s GAAP financial statements but is not included in the determination of ICTI or the RIC compliance requirements of the Company. The income of OFSCC-MB, net of applicable income taxes, is not included in the Company’s ICTI until distributed by OFSCC-MB, which may result in timing and character differences between the Company’s GAAP and tax-basis net investment income and realized gains and losses.

Taxable income and distributions: As of December 31, 2022, the Company met the source of income and asset diversification requirements, and intends to continue to meet these requirements. As of December 31, 2022, the Company recognized excise tax of $100 related to estimated undistributed income for the year ended December 31, 2022. The Company’s ICTI differs from the net increase (decrease) in net assets resulting from operations primarily due to differences in income recognition on the unrealized appreciation/depreciation of investments, income recognition for CLO subordinated note investments, income from Company’s equity investments in pass-through entities, capital gains and losses and the net creation or utilization of capital loss carryforwards.

The distributions paid to stockholders are reported as ordinary income, long-term capital gains and returns of capital. The tax character of distributions paid(1) were as follows:


	Years Ended December 31,
	2022(1)		2021		2020
Ordinary taxable income	$	15,564	$	12,207	$	11,516
Long-term capital gain	—		—		—
Return of capital	—		—		—
Total distributions to stockholders	$	15,564	$	12,207	$	11,516

(1) The calculation of 2022 U.S. federal taxable income is based on certain estimated amounts, including information received from third parties and, as a result, actual 2022 U.S. federal taxable income will not be finally determined until the Company’s 2022 U.S. federal tax return is filed in 2023 (and, therefore, such estimate is subject to change).

Tax-basis components of distributable earnings (accumulated losses) as of December 31, 2022 and 2021, were as follows:


	December 31,
	2022		2021
Ordinary income (RIC)	$	3,551	$	1,193
Undistributed earnings and profits (net operating loss carry-forward) (OFSCC-MB; C-Corporation)	2,606		3,325
Capital loss carryforwards:
RIC – short-term, non-expiring	(3,683)		(3,226)
RIC – long-term, non-expiring	(34,335)		(34,292)

The Company records reclassifications to its capital accounts related to permanent differences between GAAP and tax treatment of excise taxes and other permanent differences. The Company recorded reclassifications to decrease additional paid-in capital against total distributable earnings (accumulated loss) of $101, $2,142 and $331 for the years ended December 31, 2022, 2021 and 2020, respectively.

The estimated tax-basis cost of investments and associated tax-basis gross unrealized appreciation (depreciation) inherent in the fair value of investments as of December 31, 2022 and 2021, were as follows:


	December 31,
	2022		2021
Tax-basis amortized cost of investments	$	473,716	$	452,722
Tax-basis gross unrealized appreciation on investments	92,230		83,033
Tax-basis gross unrealized depreciation on investments	(65,370)		(28,656)
Tax-basis net unrealized appreciation (depreciation) on investments	26,860		54,377
Fair value of investments	$	500,576	$	507,099

Deferred taxes: The Company recognizes deferred taxes on the unrealized appreciation or depreciation of securities held through OFSCC-MB, and other basis differences including available loss carry forwards and suspended interest expense deductions reported by portfolio companies. Deferred tax assets and liabilities are measured using enacted corporate federal tax rates and estimated state tax burdens expected to apply to taxable income in the years in which those unrealized gains and losses are realized. The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of the projected taxable income or other taxable events in OFSCC-MB.

The tax-basis unrealized appreciation (depreciation) of investments by tax entity inherent in the fair value of investments as of December 31, 2022 and 2021, were as follows:


	2022		2021



Total net unrealized appreciation (depreciation) on investments held by RIC entities	$	27,494	$	54,282
OFSCC-MB (C-Corp):
Gross unrealized appreciation on investments	144		649
Gross unrealized depreciation on investments	(778)		(554)
Total net unrealized appreciation (depreciation) on investments on investments held by OFSCC-MB	(634)		95
Total tax-basis net unrealized appreciation on investments	$	26,860	$	54,377

Deferred tax assets and liabilities as of December 31, 2022 and 2021, were as follows:


	December 31,
	2022		2021
Total deferred tax assets	$	205	$	141
Valuation allowance on deferred tax assets	(124)		—
Total deferred tax liabilities	(81)		(167)

Deferred tax liabilities and assets with tax basis unrealized gain and losses differs from the amount that would have resulted from applying the federal rate of 21% to unrealized gains and losses because of state income taxes, net of associated federal benefit.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Financial Highlights

12 Months Ended

Dec. 31, 2022

Investment Company [Abstract]

Financial Highlights

The following is a schedule of financial highlights for each year in the five-year period ended December 31, 2022:


	Years Ended December 31,
	2022			2021			2020			2019			2018
Per share operating performance:
Net asset value per share at beginning of year	$	15.18		$	11.85		$	12.46		$	13.10		$	14.12
Net investment income(4)	1.37			1.00			0.92			1.43			1.38



Net realized loss on investments, net of taxes(4)	(0.13)			(1.54)			(0.75)			(0.29)			(0.36)



Net unrealized appreciation (depreciation) on investments, net of deferred taxes(4)	(1.79)			5.12			0.25			(0.42)			(0.31)
Loss on extinguishment of debt(4)	(0.01)			(0.34)			(0.06)			—			—
Loss on impairment of goodwill(4)	—			—			(0.08)			—			—
Total from operations	(0.56)			4.24			0.28			0.72			0.71

Distributions	(1.16)			(0.91)			(0.86)			(1.36)			(1.73)


Issuance/repurchase of common stock(5)	0.01			—			(0.03)			—			—

Net asset value per share at end of year	$	13.47		$	15.18		$	11.85		$	12.46		$	13.10

Per share market value, end of period	$	10.15		$	10.90		$	7.15		$	11.17		$	10.60
Total return based on market value(1)	4.4		%	66.8		%	(24.0)		%	18.3		%	3.5		%
Total return based on net asset value(2)	(0.6)		%	40.2		%	13.6		%	6.7		%	7.8		%
Shares outstanding at end of period	13,398,078			13,422,413			13,409,559			13,376,836			13,357,337
Weighted average shares outstanding	13,417,410			13,413,861			13,394,005			13,364,244			13,348,203
Ratio/Supplemental Data (in thousands except ratios)
Average net asset value(3)	$	194,068		$	178,628		$	148,175		$	171,889		$	182,468
Net asset value at end of year	$	180,423		$	203,744		$	158,956		$	166,627		$	175,023
Net investment income	$	18,352		$	13,450		$	12,295		$	19,098		$	18,385
Ratio of total expenses, net to average net assets(8)	15.7		%	19.2		%	22.4		%	19.4		%	13.4		%
Ratio of total expenses, net and losses on impairment of goodwill and extinguishment of debt to average net assets(9)	15.7		%	21.8		%	23.7		%	—		%	—		%
Ratio of net investment income to average net assets(6)	9.5		%	7.5		%	8.3		%	11.1		%	10.5		%
Ratio of goodwill impairment loss to average net assets	—		%	—		%	0.7		%	—		%	—		%
Ratio of loss on extinguishment of debt to average net assets	0.1		%	2.6		%	0.6		%	—		%	—		%
Portfolio turnover(7)	28.0		%	54.9		%	28.1		%	21.2		%	41.9		%

(1)Calculated as ending market value less beginning market value, adjusted for distributions reinvested at prices based on the Company’s dividend reinvestment plan for the respective distributions.

(2)Calculated as ending net asset value less beginning net asset value, adjusted for distributions reinvested at the Company’s dividend reinvestment plan for the respective distributions.

(3)Based on the average of the net asset value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

(4)Calculated on the average share method.

(5)The issuance/repurchase of common stock on a per share basis reflects the net asset value change as a result of DRIP issuances or shares repurchased pursuant to the Stock Repurchase Program.

(6)Ratio of net investment income before incentive fee waiver to average net assets was 8.0% and 10.5% for the years ended December 31, 2020 and December 31, 2018, respectively.

(7)Portfolio turnover rate is calculated using the lesser of year-to-date sales, Structured Finance Security distributions and principal payments or year-to-date purchases over the average of the invested assets at fair value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

(8)Ratio of total expenses before incentive fee waiver to average net assets was 22.7% and 13.4% for the years ended December 31, 2020 and December 31, 2018, respectively.

(9)Ratio of total expenses before incentive fee waiver and losses on impairment of goodwill and extinguishment of debt to average net assets was 24.0% for the year ended December 31, 2020.

Capital Transactions

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Capital Transactions

Distributions: The Company intends to make distributions to stockholders on a quarterly basis of substantially all of its net investment income. In addition, although the Company intends to make distributions of any net realized capital gains, out of assets legally available for such distributions at least annually, the Company may in the future decide to retain such net investment income and capital gains for investment or corporate purposes.

The Company may be limited in its ability to make distributions due to the BDC asset coverage requirements of the 1940 Act. The Company’s ability to make distributions may also be affected by its restrictions imposed by the SBA regulations on the Company’s wholly owned SBIC subsidiary, and may require the prior approval of the SBA. In addition, distributions from OFSCC-FS to the Company are restricted by the terms and conditions of the BNP Facility. At December 31, 2022 and December 31, 2021, net assets of SBIC I LP were $125,236 and $125,375, respectively, which included cash of $8,587 and $11,265, of which $4,180 and $12,422 were available for distribution at December 31, 2022 and 2021, respectively. At December 31, 2022 and December 31, 2021, net assets of OFSCC-FS were $68,214 and $76,072, respectively, which included cash of $3,706 and $3,693, of which $0 and $0 were available for distribution to the Company at December 31, 2022 and 2021, respectively.

The following table summarizes distributions declared and paid for the years ended December 31, 2022, 2021 and 2020:


Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued	DRIP Shares Value
Year ended December 31, 2020
March 11, 2020	March 24, 2020	March 31, 2020	$	0.34	$	4,484	15,693	$	64
May 4, 2020	June 23, 2020	June 30, 2020	0.17		2,244		7,165	32
July 28, 2020	September 23, 2020	September 30, 2020	0.17		2,246		6,708	32
November 3, 2020	December 24, 2020	December 31, 2020	0.18		2,391		3,157	22
			$	0.86	$	11,365	32,723	$	150
Year ended December 31, 2021
March 2, 2021	March 24, 2021	March 31, 2021	$	0.20	$	2,655	3,103	$	27
May 7, 2021	June 23, 2021	June 30, 2021	0.22		2,918		3,273	33
August 3, 2021	September 23, 2021	September 30, 2021	0.24		3,181		3,738	38
November 2, 2021	December 24, 2021	December 31, 2021	0.25		3,317		3,440	38
			$	0.91	$	12,071	13,554	$	136
Year ended December 31, 2022
March 1, 2022	March 24, 2022	March 31, 2022	$	0.28	$	3,719	3,016	$	39
May 3, 2022	June 23, 2022	June 30, 2022	0.29		3,850		4,348	43
August 2, 2022	September 23, 2022	September 30, 2022	0.29		3,849		5,529	46
November 1, 2022	December 23, 2022	December 30, 2022	0.30		3,967		5,026	51
			$	1.16	$	15,385	17,919	$	179

The following table represents DRIP participation for the years ended December 31, 2022, 2021 and 2020, respectively:


For the Year Ended	DRIP Shares Value		Total Distribution Declared		DRIP Shares Issued	Average Value Per Share
December 31, 2022	$	179	$	15,564	17,919	$	9.98
December 31, 2021	136		12,207		13,554	10.04
December 31, 2020	150		11,516		32,723	4.60

Since the Company’s initial public offering in 2012, distributions to stockholders total $148,327, or $12.65 per share on a cumulative basis.

Distributions in excess of the Company’s current and accumulated ICTI would be treated first as a return of capital to the extent of a stockholder’s tax basis, and any remaining distributions would be treated as a capital gain. The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and distributions paid for the full year. Each year, if required, a statement on Form 1099-DIV identifying the source of the distribution is mailed to the Company’s stockholders.

Stock repurchase program: The Company is authorized to acquire up to $10,000 of its outstanding common stock through May 22, 2024 (the “Stock Repurchase Program”). Under the Stock Repurchase Program, the Company may repurchase shares in open-market transactions, including through block purchases, depending on prevailing market conditions and other factors. The Company expects the Stock Repurchase Program to be in place through May 22, 2024, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program may be extended, modified or discontinued at any time for any reason.

The following table summarizes the shares of common stock the Company repurchased under the Stock Repurchase Program (amount in thousands except shares):


Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of the Program	Maximum Dollar Value of Shares That May Yet be Purchased Under the Program		Weighted Average Discount to NAV Prior to Repurchase
May 22, 2018 through December 31, 2018	300	$	10.29	300	$	9,997	21.5	%
January 1, 2019 through December 31, 2019	—	—		—	—		—
January 1, 2020 through December 31, 2020	—	—		—	—		—
January 1, 2021 through December 31, 2021	700	6.70		700	9,992		43.3
January 1, 2022 through December 31, 2022	42,254	8.30		42,254	9,642		41.6
Total	43,254	$	8.29	43,254