UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 WASHINGTON,
DC 20549

 Form

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the Fiscal Year Ended September 30, 2023

 or

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the transition period from to

 Commission
file number: 1-35040

 (Exact
Name of Registrant as Specified in its Charter)

 Delaware

 27-4576073

 (State or Other Jurisdiction of

 (I.R.S. Employer

 Incorporation or Organization)

 Identification No.)

 445 Park Avenue, 10th Floor, New York, NY

 10022

 (Address of Principal Executive Offices)

 (Zip Code)

 (212) 859-0390

 (Registrant's
Telephone Number, Including Area Code)

 Securities
registered pursuant to Section 12(b) of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange
 on which registered

 Common Stock, par value $0.001 per share

 PFX

 The NASDAQ Global Market

 5.25% Notes due 2028

 PFXNZ

 The NASDAQ Global Market

 Securities
registered pursuant to Section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No

by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer
 Accelerated filer
 Non-accelerated filer
 Smaller reporting company
 Emerging growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes
No

 The
aggregate market value of the registrant's common stock held by non-affiliates of the Registrant as of March 31, 2023 was $ 60,578,642.
The Registrant had 2,072,590 shares of common stock, $0.001 par value, outstanding as of December 22, 2023.

 DOCUMENTS
INCORPORATED BY REFERENCE

 Portions
of the registrant's proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection
with the registrant's 2024 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated
by reference in to Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later
than 120 days following the end of the registrant's fiscal year ended September 30, 2023.

 TABLE
OF CONTENTS

 Page

 PART
 I

 Item
 1.

 Item
 1A.

 Risk
 Factors

 Item
 1B.

 Unresolved
 Staff Comments

 Item
 2.

 Properties

 Item
 3.

 Legal
 Proceedings

 Item
 4.

 Mine
 Safety Disclosures

 PART
 II

 Item
 5.

 Market
 for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item
 6.

 [Reserved]

 Item
 7.

 Management's
 Discussion and Analysis of Financial Condition and Results of Operations

 Item
 7A.

 Quantitative
 and Qualitative Disclosures About Market Risk

 Item
 8.

 Financial Statements and Supplementary Data

 Item
 9.

 Changes
 in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item
 9A.

 Controls
 and Procedures

 Item
 9B.

 Other
 Information

 Item 9C.

 Disclosure Regarding
 Foreign Jurisdictions that Prevent Inspections.

 PART
 III

 Item
 10.

 Directors,
 Executive Officers and Corporate Governance

 Item
 11.

 Executive
 Compensation

 Item
 12.

 Security
 Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item
 13.

 Relationships and Related Transactions, and Director Independence

 Item
 14.

 Principal
 Accountant Fees and Services

 PART
 IV

 Item
 15.

 Exhibits
 and Financial Statement Schedules

 Signatures

 i

 PART
I

 Item
1. Business

 GENERAL

 PhenixFIN Corporation ("PhenixFIN", the "Company,"
"we" and "us") is an internally-managed non-diversified closed-end management investment company incorporated
in Delaware that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of
1940, as amended (the "1940 Act"). We completed our initial public offering ("IPO") and commenced operations on
January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a
regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").
On November 18, 2020, the board of directors of the Company (the "Board") approved the adoption of an internalized management
structure, effective January 1, 2021. Until close of business on December 31, 2020 we were externally managed and advised by MCC Advisors
LLC ("MCC Advisors"), pursuant to an investment management agreement. MCC Advisors was a wholly owned subsidiary of Medley
LLC, which was controlled by Medley Management Inc. (OTCM: MDLM), a publicly traded asset management firm ("MDLM").

 The
Company has formed and expects to continue to form certain taxable subsidiaries (the "Taxable Subsidiaries"), which are taxed
as corporations for federal income tax purposes. These Taxable Subsidiaries allow us to, among other things, hold equity securities of
portfolio companies organized as pass-through entities while continuing to satisfy the requirements to qualify as a RIC under the Code.

 The
Company's investment objective is to generate current income and capital appreciation. The management team seeks to achieve this
objective primarily through making loans, private equity or other investments in privately-held companies. The Company may also make
debt, equity or other investments in publicly-traded companies. (These investments may also include investments in other BDCs, closed-end
funds or real estate investment trusts ("REITs").) We also pursue other strategic opportunities and invest in other assets
or operate other businesses to achieve our investment objective, such as operating and managing an asset-based lending business. The
portfolio generally consists of senior secured first lien term loans, senior secured second lien term loans, senior secured bonds, preferred
equity and common equity. Occasionally, we will receive warrants or other equity participation features which we believe will have the
potential to increase total investment returns. Our loan and other debt investments are primarily rated below investment grade or are
unrated. Investments in below investment grade securities are considered predominantly speculative with respect to the issuer's
capacity to pay interest and repay principal when due.

 We
believe the private debt market is undergoing structural shifts that are creating significant opportunities for non-bank lenders and
investors. The underlying drivers of these structural changes include reduced participation by banks in the private debt markets and
demand for private debt created by committed and uninvested private equity capital. We focus on taking advantage of this structural shift
by lending directly to companies that are underserved by the traditional banking system and generally seek to avoid broadly marketed
investment opportunities. We source investment opportunities primarily through direct relationships with financial sponsors, industry
specialists, as well as financial intermediaries such as investment banks and commercial banks.

 Our
Investment Team is responsible for sourcing investment opportunities, conducting industry research, performing diligence on potential
investments, structuring our investments and monitoring our portfolio companies on an ongoing basis. Our Investment Team draws on its
expertise in lending to predominantly privately held borrowers in a range of sectors, including industrials, transportation, energy and
natural resources, financials, gemstones/jewelry and real estate.

 As
a BDC, we are required to comply with regulatory requirements, including limitations on our use of debt. We are permitted to, and expect
to continue to, finance our investments through borrowings. However, as a BDC, we are only generally allowed to borrow amounts such that
our asset coverage, as defined in the 1940 Act, equals at least 200% (or 150% if certain requirements under the 1940 Act are met) after
such borrowing. The amount of leverage that we employ will depend on our assessment of market conditions and other factors at the time
of any proposed borrowing.

 As
of September 30, 2023, the Company's asset coverage was 270.7% after giving effect to leverage and therefore the Company's
asset coverage was greater than 200%, the minimum asset coverage requirement applicable presently to the Company under the 1940 Act.

 Our
principal executive office is located at 445 Park Avenue, 10th Floor, New York, NY and our telephone number is (212) 859-0390.

Process Overview

 Sourcing
and Origination. We typically source investment opportunities through our management team's network of long-standing relationships.
Our sourcing efforts are led by our senior investment professionals, who leverage their experience in the sourcing and origination of
investments.

 Initial
Evaluation. We use a systematic, consistent approach to credit evaluation, which typically consists of (i) a preliminary due diligence
review conducted by the Company, (ii) an initial diligence meeting with the portfolio company's management team, investment bank
or private equity sponsor, (iii) an initial indication of interest and terms, and (iv) preparation of memoranda including potential portfolio
company overviews, investment considerations and risks, financial model and return information.

 Due
Diligence & Underwriting. We typically undertake continued diligence, which expands on the investment thesis, risks and mitigants,
and competition factors of our potential investment opportunities. We may conduct third party reviews, on-site visits and/or background
checks in connection with our potential investments in portfolio companies.

Management. We undertake a proactive monitoring process of our portfolio companies, whereby we conduct monthly financial review and
monitoring of compliance with covenants, maintain ongoing dialogue with portfolio company management and owners, and exercise board observer
rights where appropriate.

 Rating
Criteria. We generally use an investment rating system to characterize and monitor the credit profile and our expected level of returns
on each debt investment in our portfolio. We use a five-level numeric rating scale. The following is a description of the conditions
associated with each investment rating:

 Credit

 Rating

 Definition

 Investments that are performing above expectations.

 within expectations, with risks that are neutral or favorable compared to risks at the time of origination. All new loans are rated
 '2'.

 below expectations and that require closer monitoring, but where no loss of interest, dividend or principal is expected. Companies
 rated '3' may be out of compliance with financial covenants, however, loan payments are generally not past due.

 below expectations and for which risk has increased materially since origination. Some loss of interest or dividend is expected but
 no loss of principal. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past
 due (but generally not more than 180 days past due).

 substantially below expectations and whose risks have increased substantially since origination. Most or all of the debt covenants
 are out of compliance and payments are substantially delinquent. Some loss of principal is expected.

Structure

 Once
we have determined that a prospective portfolio company is suitable for investment, we work with the management of that company and its
other capital providers to structure an investment. We negotiate among these parties to agree on how our investment is expected to perform
relative to the other capital in the portfolio company's capital structure.

 We typically
structure our investments as follows:

Secured First Lien Term Loans We structure these investments as senior secured loans. We obtain security interests in the assets
of the portfolio companies that serve as collateral in support of the repayment of such loans. This collateral generally takes the form
of first-priority liens on the assets of the portfolio company borrower. Our senior secured loans may provide for amortization of principal
with the majority of the amortization due at maturity.

Secured Second Lien Term Loans We structure these investments as junior, secured loans. We obtain security interests in the assets
of these portfolio companies that serve as collateral in support of the repayment of such loans. This collateral generally takes the
form of second-priority liens on the assets of a portfolio company. These loans typically provide for amortization of principal in the
initial years of the loans, with the majority of the amortization due at maturity.

Secured First Lien Notes We structure these investments as senior secured loans. We obtain security interests in the assets of these
portfolio companies that serve as collateral in support of the repayment of such loans. This collateral generally takes the form of priority
liens on the assets of a portfolio company. These loans typically have interest-only payments (often representing a combination of cash
pay and payment-in-kind, or ("PIK"), interest), with amortization of principal due at maturity. PIK interest represents contractually
deferred interest added to the loan balance that is generally due at the end of the loan term and recorded as interest income on an accrual
basis to the extent such amounts are expected to be collected.

and Minority Equity Securities In some cases, we may also receive nominally priced warrants or options to buy a minority equity interest
in the portfolio company in connection with a debt investment. As a result, as a portfolio company appreciates in value, we may achieve
additional investment return from this equity interest. We may structure such warrants to include provisions protecting our rights as
a minority-interest holder, as well as a "put," or right to sell such securities back to the issuer, upon the occurrence
of specified events. In many cases, we may also seek to obtain registration rights in connection with these equity interests, which may
include demand and "piggyback" registration rights.

 Unitranche
Loans We structure our unitranche loans, which combine the characteristics of traditional senior secured first lien term loans and
subordinated notes as senior secured loans. We obtain security interests in the assets of these portfolio companies that serve as collateral
in support of the repayment of these loans. This collateral generally takes the form of first-priority liens on the assets of a portfolio
company. Unitranche loans typically provide for amortization of principal in the initial years of the loans, with the majority of the
amortization due at maturity.

Debt We structure these investments as unsecured, subordinated loans that provide for relatively high, fixed interest rates that
provide us with significant current interest income. These loans typically have interest-only payments (often representing a combination
of cash pay and payment-in-kind, or PIK, interest), with amortization of principal due at maturity. Subordinated notes generally allow
the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is
unable to pay the lump sum or refinance the amount owed at maturity. The valuation of subordinated notes are generally more volatile
than secured loans and may involve a greater risk of loss of principal. Subordinated notes often include a PIK feature, which effectively
operates as negative amortization of loan principal.

 We
expect to hold most of our investments to maturity or repayment, but we may realize or sell some of our investments earlier if a liquidity
event occurs, such as a sale or recapitalization transaction, or the worsening of the credit quality of the portfolio company.

 The
Company has invested in its affiliate, FlexFIN, LLC ("FlexFIN"), which operates an asset-based lending business under which
it enters into secured loans and secured financing structures with borrowers engaged in the gemstone/jewelry industry. FlexFIN will generally
structure these loans as sale/repurchase transactions under which the collateral (that is, the gemstones/jewelry) remains under FlexFIN's
ownership during the entire term of the loan.

 Managerial
Assistance

 As
a BDC, we offer, and must provide upon request, managerial assistance to certain of our portfolio companies. This assistance could involve,
among other things, monitoring the operations of our portfolio companies, participating in board and management meetings, consulting
with and advising officers of portfolio companies and providing other organizational and financial guidance. We may receive fees for
these services.

 Leverage

 As
a BDC, we are generally only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at
least 200% after giving effect to such leverage. The amount of leverage that we employ at any time depends on our assessment of the market
and other factors at the time of any proposed borrowing. We are also subject to certain regulatory requirements relating to our borrowings.
For a discussion of such requirements, see "Regulation - Senior Securities."

 We
may, from time to time, seek to retire or repurchase our common stock through cash purchases, as well as retire, cancel or purchase our
outstanding debt through cash purchases and/or exchanges, in open market purchases, privately negotiated transactions or otherwise. Such
repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual and regulatory
restrictions and other factors. The amounts involved may be material.

 Competition

 Our
primary competitors to provide financing to private companies are public and private funds, commercial and investment banks, commercial
finance companies, other BDCs, SBICs and private equity and hedge funds. Some competitors may have access to funding sources that are
not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could
allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors
are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC or to the distribution and other requirements
we must satisfy to maintain our favorable RIC tax treatment.

 Human
Capital Resources

 As
of September 30, 2023, the internalized management team consists of 3 investment professionals and 6 employees/consultants overall. This
team includes our executive officers, investment and finance professionals, and administrative staff. Our senior management team consists
of David Lorber, our chief executive officer, and Ellida McMillan, our chief financial officer.

 As
an internally managed BDC, the success of our business and investment strategy, including achieving our investment objective, depends
in material part on our professional team. We depend upon the members of our management team and our investment professionals for the
identification, final selection, structuring, closing and monitoring of our investments. Our professional team has critical experience
and relationships on which we rely to implement our business plan. We expect that the members of our management team and our investment
professionals will maintain key informal relationships, which we will use to help identify and gain access to investment opportunities.
If we do not attract, develop and retain highly talented professionals, we may not be able to operate our business as we expect and our
operating results could be adversely affected. See "Item 1A. Risk Factors."

 Administration

 Prior
to January 1, 2021, we operated pursuant to an investment management agreement with MCC Advisors. Since January 1, 2021, we have operated
pursuant to an internalized management structure. To lead the internalized management team, the Board approved the appointment of David
Lorber, who had served as an independent director of the Company since April 2019, as Chief Executive Officer, and Ellida McMillan as
Chief Financial Officer of the Company, each effective January 1, 2021.

 In
connection with the adoption by the board of directors of an internalized management structure, on November 19, 2020, the Company entered
into a Fund Accounting Servicing Agreement and an Administration Servicing Agreement on customary terms with U.S. Bancorp Fund Services,
LLC d/b/a U.S. Bank Global Fund Services ("U.S. Bancorp"). A U.S. Bancorp affiliate also served as the Company's custodian.
The Company's administrative and custodial relationship with U.S. Bancorp terminated on August 9, 2022. SS&C Technologies,
Inc. ("SS&C") has since served as administrator of the Company and has provided us with fund accounting and financial
reporting services pursuant to its Services Agreement with the Company. Effective September 12, 2022, Computershare Trust Company, N.A.
("Computershare") serves as custodian for the Company pursuant to its Loan Administration and Custodial Agreement with the
Company.

 Information
Available

 We
maintain a website at  We make available, free of charge, on
our website, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports
as soon as reasonably practicable after we electronically file such material with, or furnish it to, the U.S. Securities and Exchange
Commission, or the SEC. Information contained on our website is not incorporated by reference into this annual report on Form 10-K and
you should not consider information contained on our website to be part of this annual report on Form 10-K or any other report we file
with the SEC.

 Summary
of Risk Factors

 Investing
in our securities involves a high degree of risk. You should carefully consider the information in "Item 1A. Risk Factors",
including, but not limited to, the following risks:

Risks in the Current Environment

 We are operating in a
 period of market disruption and economic uncertainty, which may adversely affect the yields, and increase the risks of, our
 investment, and make it more difficult for us to raise equity capital.

 Events outside of our control
 could negatively affect the portfolio companies in which we invest and make the valuation of those investments more uncertain.

 Rising
 interest rates may increase our borrowing costs and reduce the net return that we are able to achieve on our debt investments in
 portfolio companies, and may also increase the risk of default on our portfolio company loans. Further downgrades of the U.S. credit
 rating, automatic spending cuts, or another government shutdown could negatively impact our cost of borrowing and the net return
 on our investments.

 Economic downturns could
 impair our portfolio companies, increase funding costs and limit access to capital.

 Risks
Related to our Business

 We operate under an internalized
 operating structure, including our management and investment functions, with the expectation that we will be able to operate more
 efficiently, but this may not be the case. We are dependent upon our management team, and may not realize the anticipated benefits
 of the internalization.

 We may suffer credit and
 capital losses. Because we use borrowed funds to make investments or fund our business operations, we are exposed to risks typically
 associated with leverage which increase the risk of investing in us. The lack of liquidity in our investments may adversely affect
 our business.

 A substantial portion of
 our portfolio investments will be recorded at fair value as determined in good faith by our valuation designee under the oversight
 of our board of directors and, as a result, there may be uncertainty regarding the value of our portfolio investments.

 We are a non-diversified
 investment company within the meaning of the 1940 Act, and therefore we are not limited with respect to the proportion of our assets
 that may be invested in securities of a single issuer.

 We are exposed to risks
 associated with changes in interest rates. Loans under our credit facility and the financial credit we extend to our portfolio companies
 bear interest based on the Secured Overnight Financing Rate ("SOFR") but experience with SOFR based loans is limited.
 In addition, because we use debt to finance various investments, changes in interest rates will affect our cost of capital and net
 investment income.

 If our investments are
 not managed effectively, we may be unable to achieve our investment objective. We may experience fluctuations in our periodic operating
 results. Any failure on our part to maintain our status as a BDC could reduce our operating flexibility.

 We may have difficulty
 paying our required distributions if we recognize income before or without receiving cash representing such income. We may not be
 able to pay distributions to our shareholders.

 Our board of directors
 may change our investment objective, operating policies and strategies without notice.

 Because we borrow money,
 the potential for loss on amounts invested in us will be magnified and may increase the risk of investing in us.

 We are dependent on information
 systems and systems failures could significantly disrupt our business. A failure of cybersecurity systems, as well as the occurrence
 of events unanticipated in our disaster recovery systems and management continuity planning could impair our business.

 Risks
Related to our Investments

 We may not realize gains
 from our equity investments. Our investments are risky and highly speculative. Our investments in private portfolio companies may
 be risky, and shareholders could lose their investment.

 Our portfolio companies
 may prepay loans, which prepayment may reduce stated yields if capital returned cannot be invested in transactions with equal or
 greater expected yields.

 Our failure to make follow-on
 investments in our portfolio companies could impair the value of our portfolio and our ability to make follow-on investments in certain
 portfolio companies may be restricted.

 As a BDC, our ability to
 invest in public companies and foreign companies is limited by the 1940 Act. Investments in foreign securities may involve significant
 risks in addition to the risks inherent in U.S. investments.

 16.2% of the
 Company's total assets are invested in our affiliate's asset-based lending business and its activities are influenced
 by volatility in prices of gemstones/jewelry, and the gemstones and jewelry business is subject to the risk of fraud and counterfeiting.

 We may invest
 in "unitranche" debt instruments that combine both senior and subordinated debt into one debt instrument, which typically
 pay a higher rate of interest but may also pose greater risk.

 We may invest in, or obtain
 exposure to, obligations that may be "covenant-lite," which means such obligations lack certain financial maintenance
 covenants. The disposition of our investments may result in contingent liabilities. If we invest in the securities and obligations
 of distressed and bankrupt issuers, we might not receive interest or other payments. Hedging transactions may expose us to additional
 risks.

 We are subject to risks
 associated with significant investments in one or more economic sectors and/or industries, including the business services sector,
 which includes our investment in our affiliate's asset-based lending business.

 Risks
Related to our Operations as a BDC and a RIC

 Regulations governing our
 operation as a BDC may limit our ability to raise additional capital, which could have a material adverse impact on our liquidity,
 financial condition and results of operations.

 As an internally managed
 BDC, we are subject to certain restrictions that may adversely affect our ability to offer certain compensation structures. Also,
 we are dependent upon our management team and investment professionals for their time availability. If we are not able to hire and
 retain qualified personnel, or if we lose key personnel, our ability to implement our business strategy could be significantly harmed.

 The impact of financial
 reform legislation on us is uncertain. We also cannot predict how tax reform legislation will affect the Company, our investments,
 or our stockholders, and any such legislation could adversely affect our business. Legislation that became effective in 2018 may
 allow the Company to incur additional leverage, which could increase the risk of investing in the Company.

 If we do not invest a sufficient
 portion of our assets in qualifying assets, we could fail to qualify as a BDC, which would have a material adverse effect on our
 business, financial condition and results of operations. We would become subject to corporate-level U.S. federal income tax if we
 are unable to maintain our qualification as a RIC under Subchapter M of the Code or satisfy RIC distribution requirements.

 Risks
Relating to an Investment in our Securities

 Investing in our securities
 may involve an above average degree of risk. Shares of closed-end investment companies often trade at a discount to their net asset
 value ("NAV") and our shares have not traded at or above NAV since the first quarter of 2015. The market price of our
 common stock fluctuates.

 Certain provisions of the
 Delaware General Corporation Law and our certificate of incorporation and bylaws could deter takeover attempts and have an adverse
 impact on the price of our common stock.

 Our NAV per share may be
 diluted if we sell shares of our common stock at prices below the then current NAV per share of our common stock or securities to
 subscribe for or convertible into shares of our common stock.

 If we issue preferred stock,
 the NAV and market value of our common stock may become more volatile. Holders of any preferred stock might have the right to elect
 board members and have class voting rights. The terms of the Credit Facility place restrictions on our and/or our subsidiaries activities.

 Our business and operations
 could be negatively affected if we become subject to any securities class actions and derivative lawsuits.

 INVESTMENTS

 We
have built a diverse portfolio that includes senior secured first lien term loans, senior secured second lien term loans, equity, unitranche
loans, senior secured first lien notes, subordinated notes, warrants and minority equity securities by investing approximately $10 million
to $50 million of capital, on average, in the securities of portfolio companies.

 The
following table shows the portfolio composition by industry grouping at fair value as of September 30, 2023 (dollars in thousands):

 Fair
 Value

 $
 47,083

 20.7
 %

 43,755

 19.3

 34,158

 15.1

 18,292

 8.1

 15,472

 6.8

 14,676

 6.5

 12,517

 5.5

 11,665

 5.2

 9,520

 4.2

 6,920

 3.1

 5,384

 2.4

 3,396

 1.5

 2,645

 1.2

 0.4

 Total

 $

 100.0
 %

 The
following table shows the portfolio composition by industry grouping at fair value as of September 30, 2022 (dollars in thousands):

 Fair
 Value

 $
 52,851

 27.4
 %

 31,947

 16.6

 31,910

 16.5

 21,243

 11.0

 17,724

 9.2

 8,075

 4.2

 6,208

 3.2

 5,465

 2.8

 4,220

 2.2

 4,152

 2.2

 3,361

 1.7

 3,073

 1.6

 2,607

 1.3

 0.1

 Total

 $

 100.0
 %

 The
following table sets forth certain information as of September 30, 2023 for each portfolio company in which we had an investment. Other
than these investments, our only formal relationship with our portfolio companies is the managerial assistance that we provide upon request
and the board observer or participation rights we may receive in connection with our investment.

 Name
 of Portfolio Company

 Sector

 Security
 Owned

 Rate (1)

 Par

 Shares/Units

 Fair
 Value

 %
 Assets

 Altisource
 S.A.R.L.

 4/30/2025

 5.00
 %

 $
 9,565,710

 $
 7,805,619

 5.3
 %

 Altisource
 S.A.R.L.

 5/22/2027

 75,080

 206,470

 0.1
 %

 Arcline
 FM Holdings, LLC

 Aerospace
 & Defense

 First
 Lien Term Loan

 6/23/2028

 4.75
 %

 2,679,494

 2,644,660

 1.8
 %

 Be
 Green Packaging, LLC

 Containers,
 Packaging & Glass

 -

 0.0
 %

 Boostability
 Seotowncenter, Inc.

 -

 0.0
 %

 CB&L
 Associates Holdco I, LLC

 First
 Lien Term Loan

 11/1/2025

 2.75
 %

 5,916,102

 5,191,380

 3.5
 %

 Chimera
 Investment Corp.

 117,310

 2,116,271

 1.4
 %

 Chimera
 Investment Corp.

 163,601

 3,414,353

 2.3
 %

 Property CTL Pass Through Trust

 Certificates

 597,795

 6,217,067

 4.2
 %

 DataOnline
 Corp.

 High Tech
 Industries

 5.50
 %

 4,812,500

 4,764,375

 3.2
 %

 DataOnline
 Corp.

 High Tech
 Industries

 Revolving

 5.50
 %

 707,143

 0.5
 %

 Deer
 Management Systems LLC

 Discretionary

 First
 Lien Term Loan

 5/1/2028

 8.25
 %

 3,357,500

 3,323,925

 2.3
 %

 DirecTV
 Financing, LLC

 Media:
 Broadcasting & Subscription

 8/2/2027

 5.00
 %

 4,003,908

 2.7
 %

 First
 Brands Group, LLC

 3/30/2027

 5.00
 %

 3,880,402

 2.6
 %

 Franklin
 BSP Realty Trust, Inc.

 226,107

 2,993,657

 2.0
 %

 Global
 Accessories Group, LLC

 goods: Non-durable

 -

 0.0
 %

 Innovate
 Corp.

 Construction
 & Building

 Secured Notes

 2/1/2026

 2,750,000

 2,076,250

 1.4
 %

 Invesco
 Mortgage Capital, Inc.

 3,989,300

 2.7
 %

 JFL-NGS-WCS

 Construction
 & Building

 11/12/2026

 5.50
 %

 861,605

 865,913

 0.6
 %

 JFL-NGS-WCS

 Construction
 & Building

 11,733,525

 8.0
 %

 Lighting
 Science Group Corporation

 Containers,
 Packaging & Glass

 -

 0.0
 %

 Lucky
 Bucks, LLC

 Discretionary

 180,739

 1,545,318

 1.1
 %

 Lucky
 Bucks, LLC

 Discretionary

 Second
 Out Exit Term Loan

 10/2/2029

 7.50

 %

 1,361,240

 1,361,240

 0.9
 %

 Lucky
 Bucks, LLC

 Discretionary

 First
 Out Exit Term Loan

 10/2/2028

 7.50

 %

 689,541

 689,541

 0.5
 %

 McKissock
 Investment Holdings, LLC (dba Colibri)

 3/10/2029

 5.00
 %

 4,924,535

 4,776,799

 3.3
 %

 MFA
 Financial, Inc.

 1,856,940

 1.3
 %

 New
 York Mortgage Trust, Inc.

 3,677,850

 2.5
 %

 PennyMac
 Financial Services, Inc.

 29,500

 1,964,700

 1.3
 %

 PHH
 Mortgage Corp.

 Secured Notes

 3/15/2026

 7.88
 %

 7,686,000

 6,845,344

 4.7
 %

 Point.360

 7/8/2020

 6.00
 %

 -

 0.0
 %

 Power
 Stop LLC

 1/26/2029

 4.75
 %

 6,919,937

 5,639,748

 3.8
 %

 Rithm
 Capital Corp.

 4,695,860

 3.2
 %

 Secure
 Acquisition Inc. (dba Paragon Films)

 5.00
 %

 3,430,517

 3,396,212

 2.3
 %

 SS
 Acquisition, LLC (dba Soccer Shots Franchising)

 6.50
 %

 4.5
 %

 SS
 Acquisition, LLC (dba Soccer Shots Franchising)

 6.50
 %

 3,200,000

 3,200,000

 2.2
 %

 SMART
 Financial Operations, LLC

 978,140

 0.7
 %

 Stancor
 (dba Industrial Flow Solutions Holdings, LLC)

 200,566

 0.1
 %

 Staples,
 Inc.

 First
 Lien Term Loan

 9/12/2024

 4.50
 %

 3,692,159

 3,648,315

 2.5
 %

 Tamarix
 Capital Partners II, L.P.

 Fund Investment

 N/A

 792,346

 0.5
 %

 Thryv
 Holdings, Inc.

 Media:
 Broadcasting & Subscription

 3/1/2026

 8.50
 %

 7,656,442

 7,661,227

 5.2
 %

 Velocity
 Pooling Vehicle, LLC

 5,441

 -

 0.0
 %

 Velocity
 Pooling Vehicle, LLC

 3/30/2028

 6,506

 -

 0.0
 %

 Wingman
 Holdings, Inc.

 Aerospace
 & Defense

 -

 0.0
 %

 1888

 Energy:
 Oil & Gas

 Secured First Lien Term Loan A

 5.00
 %

 9,946,741

 -

 0.0
 %

 1888

 Energy:
 Oil & Gas

 5.00
 %

 1,231,932

 751,479

 0.5
 %

 1888

 Energy:
 Oil & Gas

 Revolving

 5.00
 %

 3.2
 %

 1888

 Energy:
 Oil & Gas

 21,562

 -

 0.0
 %

 Black

 9.00
 %

 0.6
 %

 Black

 9.00
 %

 13,029,115

 1,459,249

 1.0
 %

 Black

 Secured First Lien Super Priority Delayed Draw Term Loan

 9.00
 %

 1.3
 %

 FST
 Holdings Parent, LLC

 High Tech
 Industries

 625,548

 10,000,003

 6.8
 %

 Maritime
 Wireless Holdings LLC

 5/31/2027

 9.00
 %

 5.1
 %

 Maritime
 Wireless Holdings LLC

 10,150,000

 6.9
 %

 LLC

 26.5
 %

 Holdings, LLC

 Metals
 & Mining

 6/21/2025

 15.00
 %

 2.3
 %

 Holdings, LLC

 Metals
 & Mining

 9,133,052

 6.2
 %

 NVTN
 LLC

 4.00
 %

 7,309,552

 7,214,856

 4.9
 %

 NVTN
 LLC

 9.25
 %

 17,552,420

 5,037,547

 3.4
 %

 NVTN
 LLC

 12.00
 %

 11,506,159

 -

 0.0
 %

 NVTN
 LLC

 1,000

 -

 0.0
 %

 (1)

 All interest is payable in cash and/or PIK,
 and all SOFR or LIBOR represents 1 Month and 3 Month respective rates unless otherwise indicated. For each debt investment, we have
 provided the current spread over index interest rate as of September 30, 2023.

 As of September 30, 2023, our income-bearing investment portfolio,
which represented 88.2% of our total portfolio, had a weighted average yield based upon cost of our portfolio investments of approximately
13.3% and 59.5% of our income-bearing investment portfolio bore interest based on floating rates, such LIBOR or SOFR, 13.9% of our income-bearing
investment portfolio bore interest at fixed rates, and 26.6% of our income-bearing investment portfolio are income-producing equity investments.
As of September 30, 2022, our income-bearing investment portfolio, which represented 62.0% of our total portfolio, had a weighted average
yield based upon cost of our portfolio investments of approximately 4.9%, and 81.9% of our income-bearing investment portfolio bore interest
based on floating rates, such as LIBOR or SOFR, while 18.1% of our income-bearing investment portfolio bore interest at fixed rates. The
weighted average yield of our total portfolio does not represent the total return to our stockholders. The weighted average yield on income
producing investments is computed based upon a combination of the cash flows to date and the contractual interest payments, principal
amortization and fee notes due at maturity without giving effect to closing fees received, base management fees, incentive fees or general
fund related expenses. For each floating rate loan, the projected fixed-rate equivalent coupon rate used to forecast the interest cash
flows was calculated by adding the interest rate spread specified in the relevant loan document to the fixed-rate equivalent floating
rate, duration-matched to the specific loan, adjusted by the floating rate floor and/or cap in place on that loan.

 Overview
of Portfolio Companies

 Set forth
below is a brief description of the business of our portfolio companies as of September 30, 2023:

 Company

 Brief
 Description of Portfolio Company

 1888

 1888
 Industrial Services, LLC ("1888") provides field support services to oil and gas independent producers, drilling companies
 and midstream companies in the Denver-Julesburg Basin and Permian Basin. 1888 builds, repairs, modifies and maintains
 oil and gas production equipment, sites, wells and pipelines.

 Altisource
 S.A.R.L.

 Altisource
 operates as an integrated service provider and marketplace for the real estate and mortgage industries. It provides property preservation
 and inspection services, payment management technologies, and a vendor management oversight software-as-a-service ("SaaS")
 platform.

 Arcline
 FM Holdings, LLC

 Arcline
 FM Holdings, LLC (d/b/a Fairbanks Morse Defense) is a provider of propulsion systems, ancillary power, motors, and controllers for
 the US Navy and Coast Guard, and provides necessary parts and maintenance, repair and overhaul (MRO) services to its long lived installed
 base of equipment.

 Be
 Green Packaging, LLC

 Be
 Green Packaging, LLC, founded in 2007 and headquartered in Thousand Oaks, CA, designs and manufactures the sustainable, tree-free,
 molded fiber products and packaging for food service and consumer packaged goods end markets.

 Black

 Black
 Angus Steakhouses, LLC, founded in 1964 and headquartered in Los Altos, CA, operates restaurants across six states including California,
 Arizona, Alaska, New Mexico, Washington, and Hawaii.

 Boostability
 Seotowncenter, Inc.

 Seotowncenter,
 Inc. is a tech-enabled business services company that delivers white label search engine optimization and local search and digital
 campaign fulfillment to the small and midsize business market.

 CB&L
 Associates Holdco I, LLC

 CBL
 owns, develops, acquires, leases, manages, and operates regional shopping malls, open-air and mixed-use centers, outlet centers,
 associated centers, community centers, office and other properties. Properties are in 24 states, primarily in the southeastern and
 midwestern United States.

 Chimera
 Investment Corp.

 Chimera
 Investment Corp. is an internally managed REIT that is primarily engaged in the business of investing in a diversified portfolio
 of mortgage assets, including residential mortgage loans, Agency residential mortgage-backed securities ("RMBS"), Non-Agency
 RMBS, Agency commercial mortgage-backed securities ("CMBS"), and other real estate-related assets.

 Property CTL Pass Through Trust

 Property CTL Pass Through Trust was established to acquire 160 retail properties and 6 warehouse distribution centers (the "Properties")
 from J.C. Penney as part of its Chapter 11 plan of reorganization. The Trust's operations consist solely of owning, leasing
 and selling the Properties.

 DataOnline
 Corp.

 DataOnline
 Corp. ("DataOnline") is a global provider of M2M solutions specifically for the monitoring of both fixed and mobile remote
 industrial assets. DataOnline specializes in robust and reliable devices & sensors, remote data collection, global wireless communications
 & web-based applications.

 Deer
 Management Systems LLC

 Deer
 Management Systems LLC (d/b/a Reveal Cellular Cameras) is a provider of subscription-based, cellular trail cameras, which are used
 extensively by hunters and outdoorsmen.

 DirecTV
 Financing, LLC

 DirecTV
 offers digital entertainment services in the United States using satellite and IP-based technologies as well as streaming options
 that do not require either satellite or wired IP services. The Company's customer base primarily consists of residential customers.

 First
 Brands Group, LLC

 First
 Brands Group, LLC is an automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical
 repair parts under a portfolio of brands.

 LLC

 FlexFIN
 operates an asset-based lending business under which it enters into secured loans and secured financing structures with borrowers
 engaged in the gemstone/jewelry industry.

 Franklin
 BSP Realty Trust, Inc.

 Franklin
 BSP Realty Trust, Inc. is a real estate finance company that primarily originates, acquires and manages a diversified portfolio of
 commercial real estate debt investments secured by properties located within and outside the United States.

 FST
 Holdings Parent, LLC

 FST
 is a privately held provider of diversified technical services to the semiconductor / microelectronics, life sciences, data center,
 government, and higher-education industries.

 Global
 Accessories Group, LLC

 Global
 Accessories Group, LLC, headquartered in New York City, designs, manufactures, and sells custom-themed jewelry and accessory collections.
 These collections are tailored to leading retailers in the specialty, department store, off-price and juniors markets.

 Innovate
 Corp.

 Innovate
 is a diversified holding company that has a portfolio of subsidiaries in a variety of operating segments, infrastructure, life sciences,
 and broadcasting.

 Invesco
 Mortgage Capital, Inc.

 Invesco
 Mortgage Capital Inc. is a Maryland corporation primarily focused on investing in, financing and managing mortgage-backed securities
 ("MBS") and other mortgage-related assets.

 JFL-NGS-WCS

 JFL-NGS-WCS
 Partners, LLC was formed in November 2020 when NorthStar Group Services, a provider of environmental remediation and deconstruction
 services, merged with Waste Control Specialists, a leading provider of hazardous and radioactive waste disposal, storage, and treatment
 for commercial and government customers.

 Operations, LLC

 Operations, LLC, location in Wyoming, is a producer of high-value thermal coal and surface-mined coal.

 Lighting
 Science Group Corporation

 Lighting
 Science Group Corporation ("LSG") is a light emitting diode ("LED") lighting technology company. LSG designs,
 develops and markets general illumination products that exclusively use LEDs as their light source. LSG's product portfolio
 includes LED-based retrofit lamps (replacement bulbs) used in existing light fixtures as well as purpose-built LED-based luminaires
 (light fixtures).

 Company

 Brief
 Description of Portfolio Company

 Lucky
 Bucks, LLC

 Lucky
 Bucks, LLC owns and operates digital gaming terminals, or Coin Operated Amusement Machines, in the state Georgia.

 Maritime
 Wireless Holdings LLC

 Wireless
 Maritime Services LLC is a leading provider of on-board cellular communications solutions for the ocean-going cruise industry and
 other maritime sectors.

 McKissock
 Investment Holdings, LLC (dba Colibri)

 Colibri
 is a provider of career lifecycle management for mandatory professional education solutions across various end markets including
 Financial & Accounting Services, Real Estate, Healthcare, Valuation & Property Services and Teaching.

 MFA
 Financial, Inc.

 MFA
 Financial, Inc. is an internally-managed REIT primarily engaged in investing in residential mortgage assets, with a focus on residential
 whole loans, residential mortgage securities, and mortgage servicing rights-related assets.

 New
 York Mortgage Trust, Inc.

 NY
 Mortgage Trust is a REIT that acquires, invests in, finances and manages mortgage-related single-family and multi-family residential
 assets in the US.

 NVTN
 LLC

 NVTN
 LLC (d/b/a "Dick's Last Resort"), established in 1985 and headquartered in Nashville, TN, is a "eatertainment"
 restaurant concept with locations throughout the US, mostly in budget friendly tourist destinations. NVTN LLC has developed
 an identifiable brand for its high-energy, unique themed restaurant concept that targets tourists and business travelers in high
 foot traffic locations.

 PennyMac
 Financial Services, Inc.

 PennyMac
 Financial Services, Inc. isa specialty financial services firm with a comprehensive mortgage platform and integrated business primarily
 focused on the production and servicing of U.S. residential mortgage loans and the management of investments related to the U.S.
 mortgage market.

 PHH
 Mortgage Corp.

 PHH
 Mortgage Corp. services and originates forward and reverse mortgage loans. The Company has been servicing mortgages since 1988 and
 commenced origination of forward mortgage loans in 2012 and reverse mortgage loans in 2013.

 Point.360

 Point.360,
 headquartered in Los Angeles, CA is a full-service content management company with several facilities strategically located throughout
 Los Angeles supporting all aspects of postproduction.

 Power
 Stop LLC

 Power
 Stop LLC manufactures and distributes braking systems for cars, trucks, SUVs, performance vehicles, and severe duty trucks and tows.
 The Company offers brake kits, caliper kits, brake pads, brake rotors, calipers, brake shoes, and pad wear sensors. It provides products
 through a network of distributors in Europe, North America, South America, the Middle East, and Africa; and online retailers.

 Rithm
 Capital Corp.

 Rithm
 Capital Corp. ("RITM") is a vertically integrated investment management and mortgage platform externally managed by Fortress
 Investment Group. RITM's investments focus on servicing and origination, residential securities and loans, and consumer loans.

 Secure
 Acquisition Inc. (dba Paragon Films)

 Paragon
 Films, Inc. manufactures and supplies stretch film products to customers in various industries in the United States, Canada, Mexico,
 South America, and internationally.

 SS
 Acquisition, LLC (dba Soccer Shots Franchising)

 Soccer
 Shots Franchising is a franchised-based system operating in the U.S. and Canada that provides children's enrichment programs
 with a unique emphasis on social, cognitive, and linguistic skill through soccer.

 SMART
 Financial Operations, LLC

 SMART
 Financial Operations, LLC, headquartered in Orlando, FL, is a specialty retail platform initially comprised of three distinct retail
 pawn store chains and a pawn industry consulting firm.

 Stancor
 (dba Industrial Flow Solutions Holdings, LLC)

 Stancor,
 founded in 1985 and based out of Monroe, CT, is a designer and manufacturer of electric submersible pumps, control, accessories,
 and parts.

 Staples,
 Inc.

 Staples
 is a B2B distributor of office supplies in North America and provider of e-commerce via Staples.com.

 Tamarix
 Capital Partners II, L.P.

 Tamarix
 Capital Partners II, L.P. is a licensed Small Business Investment Company ("SBIC") formed to generate attractive-risk
 adjusted returns by making debt and preferred equity investments in United States-based, lower middle market companies operating
 across a broad cross-section of industries and sectors.

 Thryv
 Holdings, Inc.

 Thryv
 Holdings, Inc. is a provider of print and digital marketing solutions to small and medium sized businesses and SaaS end-to-end customer
 experience tools.

 Velocity
 Pooling Vehicle, LLC

 Velocity
 Pooling Vehicle, LLC, headquartered in Coppell, TX, is a manufacturer, distributor and retailer of branded aftermarket products for
 the powersports industry. The Company's brands include Vance & Hines, Kuryakyn, Mustang, Performance Machine, and others.

 Wingman
 Holdings, Inc.

 Wingman
 Holdings, Inc. (f/k/a Crow Precision Components, LLC) is a Fort Worth, TX based forger of aluminum and steel used for mission critical
 aircraft components, among other end markets.

 Payment
of Our Expenses

 Since
January 1, 2021, we are internally managed and do not pay any external investment advisory fees, but instead directly incur the operating
costs associated with employing professionals and staff. We bear all costs and expenses of our operations and transactions, including,
but not limited to those related to:

 our organization and continued
 corporate existence;

 calculating our net asset
 value ("NAV") (including the cost and expenses of any independent valuation firms);

 expenses, including travel
 expense, incurred by our professionals or payable to third parties performing due diligence on prospective portfolio companies, monitoring
 our investments and, if necessary, enforcing our rights;

 interest payable on debt
 incurred to finance our investments;

 the costs of all offerings
 of common shares and other securities;

 operating costs associated
 with employing investment professionals and other staff;

 distributions on our shares;

 administration fees payable
 under our administration agreement;

 custodial fees related
 to our assets

 amounts payable to third
 parties relating to, or associated with, making investments;

 transfer agent and custodial
 fees;

 all registration and listing
 fees;

 U.S. federal, state and
 local taxes;

 independent directors'
 fees and expenses;

 costs of preparing and
 filing reports or other documents with the SEC or other regulators;

 the costs of any reports,
 proxy statements or other notices to our stockholders, including printing costs;

 our fidelity bond;

 the operating lease of
 our office space;

 directors and officers/errors
 and omissions liability insurance, and any other insurance premiums;

 indemnification payments;
 and

 direct costs and expenses
 of administration, including audit and legal costs.

 Administration
Agreement

 On
January 19, 2011, the Company entered into an administration agreement with MCC Advisors. In connection with the adoption by the board
of directors of an internalized management structure, on November 19, 2020, the Company entered into a Fund Accounting Servicing Agreement
and an Administration Servicing Agreement on customary terms with U.S. Bancorp. A U.S. Bancorp affiliate also served as the Company's
custodian. The Company's administrative and custodial relationship with U.S. Bancorp terminated on August 9, 2022. SS&C has
since served as administrator of the Company and has provided us with fund accounting and financial reporting services pursuant to its
Services Agreement with the Company. Effective September 12, 2022, Computershare serves as custodian for the Company pursuant to its
Loan Administration and Custodial Agreement with the Company. For the years ended September 30, 2023, 2022 and 2021, we incurred $0.3
million, $0.3 million and $0.6 million in administrator expenses, respectively.

 Internalized
Management Structure

 On
November 18, 2020, the board of directors approved adoption of an internalized management structure effective January 1, 2021. The new
management structure replaced the investment management and administration agreements with MCC Advisors, which expired on December 31,
2020. The board approved the establishment of a committee, consisting of Arthur Ainsberg, Karin Hirtler-Garvey, Lowell Robinson and Howard
Amster, to oversee the transition to the internalized management structure.

 To lead the internalized management team, the
board appointed David Lorber, who had served as an independent director of the Company since April 2019, as Chief Executive Officer and
Ellida McMillan, who previously served as Chief Financial Officer and Chief Operating Officer of Alcentra Capital Corporation, a NASDAQ-traded
BDC, from April 2017 until it merged into Crescent Capital BDC, Inc. in February 2020, as Chief Financial Officer of the Company, each
effective January 1, 2021. Mr. Lorber is paid an annual base salary of $530,000, and Ms. McMillan is paid an annual base salary of $350,000,
and each is eligible for one or more discretionary cash bonuses.

 The internalized management team is responsible for the day-to-day
management and operations of the Company, under the oversight of the board. The internalized management team presently consists of 3 investment
professionals and 6 employees/consultants overall. The Company retained ACA Group, the successor to Alaric Compliance Services, LLC, whose
officer serves as the Company's Chief Compliance Officer. As discussed above, the Company has also entered into a services agreement
on customary terms with SS&C, which serves as the Company's administrator, as well as a loan administration and custodial agreement
on customary terms with Computershare, who serves as our primary custodian.

 REGULATION

 General

 We
have elected to be regulated as a BDC under the 1940 Act. The 1940 Act contains prohibitions and restrictions relating to transactions
between BDCs and their affiliates, principal underwriters and affiliates of those affiliates or underwriters and requires that a majority
of the directors be persons other than "interested persons", as that term is defined in the 1940 Act. In addition, the 1940
Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved
by "a majority of our outstanding voting securities."

 As
a BDC, we are required to meet an asset coverage ratio, reflecting the value of our total assets to our total senior securities, which
include all of our borrowings and any preferred stock we may issue in the future, of at least 200%. However, in March 2018, the Small
Business Credit Availability Act (the "SBCA") modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage
it may incur from 200% to 150%, if certain requirements are met. Under the 1940 Act, we are allowed to increase our leverage capacity
if stockholders representing at least a majority of the votes cast, when a quorum is present, approve a proposal to do so. If we receive
stockholder approval, we would be allowed to increase our leverage capacity on the first day after such approval. Alternatively, the
1940 Act allows the majority of our independent directors to approve an increase in our leverage capacity, and such approval would become
effective on the one-year anniversary of such approval. In either case, we would be required to make certain disclosures on our website
and in SEC filings regarding, among other things, the receipt of approval to increase our leverage, our leverage capacity and usage,
and risks related to leverage. The Company has not sought stockholder or independent director approval to reduce its asset coverage ratio
to 150%.

 On
March 23, 2018, the SBCA was signed into law and, among other things, instructs the SEC to issue rules or amendments to rules allowing
BDCs to use the same registration, offering and communication processes that are available to operating companies. The rules and amendments
specified by the SBCA became self-implementing on March 24, 2019. On April 8, 2020, the SEC adopted rules and amendments to implement
certain provisions of the SBCA (the "Final Rules") that, among other things, modify the registration, offering, and communication
processes available to BDCs relating to: (i) the shelf offering process to permit the use of short-form registration statements on Form
N-2 and incorporation by reference; (ii) the ability to qualify for well-known seasoned issuer status; (iii) the immediate or automatic
effectiveness of certain filings made in connection with continuous public offerings; and (iv) communication processes and prospectus
The Final Rules generally became effective on August 1, 2020, except that a BDC eligible to file short-form registration statements on
statement cover page, and certain prospectus information by August 1, 2022.

 We
may also be prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior
approval of our directors who are not interested persons and, in some cases, prior approval by the SEC.

 Qualifying
Assets

 Under
the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred
to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company's
total assets. The principal categories of qualifying assets relevant to our business are the following:

 (1)

 Securities purchased in
 transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions)
 is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of
 an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio
 company is defined in the 1940 Act as any issuer which:

 is organized under the
 laws of, and has its principal place of business in, the United States;

 is not an investment company
 (other than a small business investment company wholly owned by the Company) or a company that would be an investment company but
 for certain exclusions under the 1940 Act; and

 satisfies any of the following:

 has a market capitalization
 of less than $250 million or does not have any class of securities listed on a national securities exchange;

 is controlled by a BDC
 or a group of companies including a BDC, the BDC actually exercises a controlling influence over the management or policies of the
 eligible portfolio company, and, as a result thereof, the BDC has an affiliated person who is a director of the eligible portfolio
 company; or

 is a small and solvent company having total
 assets of not more than $4 million and capital and surplus of not less than $2 million.

 (2)

 Securities of an eligible
 portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already
 own 60% of the outstanding equity of the eligible portfolio company.

 (3)

 Securities received in
 exchange for or distributed on or with respect to securities described above, or pursuant to the exercise of warrants or rights relating
 to such securities.

 (4)

 Securities of any eligible
 portfolio company which we control.

 (5)

 Securities purchased in
 a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions
 incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase
 of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending
 or financing arrangements.

 (6)

 Cash, cash equivalents, U.S. Government securities
 or high-quality debt securities maturing in one year or less from the time of investment.

 The
regulations defining and interpreting qualifying assets may change over time. We may adjust our investment focus needed to comply with
and/or take advantage of any regulatory, legislative, administrative or judicial actions in this area.

 Managerial
Assistance to Portfolio Companies

 A
BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making
investments in the types of securities described in "Regulation — Qualifying Assets" above. However, in order to count
portfolio securities as qualifying assets for the purpose of the 70% requirement, the BDC generally must either control the issuer of
the securities or must offer to make available to the issuer of the securities significant managerial assistance. Where the BDC purchases
such securities in conjunction with one or more other persons acting together, the BDC will satisfy this test if one of the other persons
in the group makes available such managerial assistance. Making available managerial assistance means, among other things, any arrangement
whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance
and counsel concerning the management, operations or business objectives and policies of a portfolio company.

 Temporary

 Pending
investment in other types of "qualifying assets", as described above, our investments may consist of cash, cash equivalents,
U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment, which we refer to,
collectively, as temporary investments, so that 70% of our assets are qualifying assets. Typically, we will invest in highly rated commercial
paper, U.S. Government agency notes, U.S. Treasury bills or in repurchase agreements relating to such securities that are fully collateralized
by cash or securities issued by the U.S. Government or its agencies. A repurchase agreement involves the purchase by an investor, such
as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price
which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction
on the proportion of our assets that may be invested in such repurchase agreements. However, certain diversification tests that must
be met in order to qualify as a RIC for U.S. federal income tax purposes will typically require us to limit the amount we invest with
any one counterparty. We will monitor the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.

Securities

 We
are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our common stock
if our asset coverage, as defined in the 1940 Act, is at least equal to 200% (or 150% if certain requirements are met) immediately after
each such issuance. In addition, while any preferred stock or publicly traded debt securities are outstanding, we may be prohibited from
making distributions to our stockholders or the repurchasing of such securities or shares unless we meet the applicable asset coverage
ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary
or emergency purposes without regard to asset coverage. For a discussion of the risks associated with leverage, see "Item 1A. Risk
Factors—Risks Related to our Business—Because we use borrowed funds to make investments or fund our business operations,
we are exposed to risks typically associated with leverage which increase the risk of investing in us."

 Code of
Ethics

 We
have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts
certain personal securities transactions. Personnel subject to each code may invest in securities for their personal investment accounts,
including securities that may be purchased or held by us, so long as such investments are made in accordance with the code's requirements.
The code of ethics is available at our website, www.phenixfc.com, and is available on the EDGAR Database on the SEC's Internet
site at

 Privacy
Policy

 We
are committed to maintaining the privacy of stockholders and to safeguarding our non-public personal information. The following information
is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we
may share information with select other parties.

 Generally,
we do not receive any non-public personal information relating to our stockholders, although certain non-public personal information
of our stockholders may become available to us. We do not disclose any non-public personal information about our stockholders or former
stockholders to anyone, except as permitted by law or as is necessary in order to service stockholder accounts (for example, to a transfer
agent or third party administrator).

 We
restrict access to non-public personal information about our stockholders to our employees with a legitimate business need for the information.
We maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of our stockholders.

 Proxy
Voting Policies and Procedures

 Our
Proxy Voting Policies and Procedures are set forth below. The guidelines are reviewed periodically by management and our independent
directors, and, accordingly, are subject to change.

 Proxy
Policies

 Our
proxy voting decisions are made by our investment professionals, who review on a case-by-case basis each proposal submitted to a shareholder
vote to determine its impact on the portfolio securities held by the Company. Although the Company generally votes against proposals
that may have a negative impact on our portfolio securities, we may vote for such a proposal if there exists compelling long-term reasons
to do so. We generally do not believe it is necessary to engage the services of an independent third party to assist in issue analysis
and vote recommendation for proxy proposals. Under certain circumstances and when deemed in the best interests of shareholders, the Company
may, in the discretion of its officers, refrain from exercising its proxy voting right for a particular decision.

 To
ensure that our vote is not the product of a conflict of interest, we require that: (i) anyone involved in the decision making process
disclose to our Chief Compliance Officer any potential conflict that he or she is aware of and any contact that he or she has had with
any interested party regarding a proxy vote; and (ii) employees involved in the decision making process or vote administration are prohibited
from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties, unless such employee
has received pre-approval from our Chief Compliance Officer.

 Proxy
Voting Records

 You may obtain
information about how we voted proxies by making a written request for proxy voting information to:

 Chief Compliance
Officer

 PhenixFIN
Corporation

 445 Park
Avenue, 10 th Floor

 New York,
NY 10022

 Other

 Under
the 1940 Act, we are not generally able to issue and sell our common stock at a price below NAV per share. We may, however, issue and
sell our common stock, at a price below the current NAV of the common stock, or issue and sell warrants, options or rights to acquire
such common stock, at a price below the current NAV of the common stock if our board of directors determines that such sale is in our
best interest and in the best interests of our stockholders, and our stockholders have approved our policy and practice of making such
sales within the preceding 12 months. In any such case, the price at which our securities are to be issued and sold may not be less than
a price which, in the determination of our board of directors, closely approximates the market value of such securities. However, we
currently do not have the requisite stockholder approval, nor do we have any current plans to seek stockholder approval, to sell or issue
shares of our common stock at a price below NAV per share.

 In
addition, at our 2012 Annual Meeting of Stockholders we received approval from our stockholders to authorize us, with the approval of
our board of directors, to issue securities to, subscribe to, convert to, or purchase shares of the Company's common stock in one
or more offerings, subject to certain conditions as set forth in the proxy statement. Such authorization has no expiration.

 We expect
to be periodically examined by the SEC for compliance with the 1940 Act.

 We
are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement.
Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to us or our stockholders arising
from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person's
office.

 We
adopted written policies and procedures reasonably designed to prevent violation of the federal securities laws, and will review these
policies and procedures annually for their adequacy and the effectiveness of their implementation. We have designated a Chief Compliance
Officer to be responsible for administering the policies and procedures.

 Election
to Be Taxed as a RIC

 We
have elected and intend to qualify annually to be treated as a RIC under Subchapter M of the Code. As a RIC, we generally will not be
subject to corporate-level U.S. federal income taxes on any net ordinary income or capital gains that we timely distribute to our stockholders
as dividends. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements
(as described below). In addition, we must distribute to our stockholders, for each taxable year, at least 90% of our "investment
company taxable income," which is generally our net ordinary income plus the excess of realized net short-term capital gains over
realized net long-term capital losses (the "Distribution Requirement").

 Taxation
as a RIC

 As
a RIC, if we satisfy the Distribution Requirement, we will not be subject to U.S. federal income tax on the portion of our investment
company taxable income and net capital gain, defined as net long-term capital gains in excess of net short-term capital losses, we timely
distribute to stockholders. We will be subject to U.S. federal income tax at regular corporate rates on any net income or net capital
gain not distributed to our stockholders.

 We
will be subject to a nondeductible U.S. federal excise tax of 4% on undistributed income if we do not distribute at least the sum of
98% of our ordinary income in any calendar year, 98.2% of our capital gain net income for each one-year period ending on October 31 of
such year, and any income and capital gain net income that we recognized in preceding years, but were not distributed during such years,
and on which we did not pay U.S. federal income tax. Depending on the level of investment company taxable income ("ICTI")
earned in a tax year and the amount of net capital gains recognized in such tax year, we may choose to carry forward ICTI in excess of
current year dividend distributions into the next tax year. In order to eliminate our liability for income tax, and to the extent necessary
to maintain our qualification as a RIC, any such carryover ICTI and net capital gains must be distributed before the end of that next
tax year through a dividend declared prior to the 15th day of the 9th month after the close of the taxable year in which such ICTI was
generated. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current
year dividend distributions for U.S. federal excise tax purposes, we accrue U.S. federal excise tax, if any, on estimated excess taxable
income as taxable income is earned.

 In order
to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:

 qualify to be treated as
 a BDC under the 1940 Act at all times during each taxable year;

 derive in each taxable
 year at least 90% of our gross income from dividends, interest, payments with respect to certain securities loans, gains from the
 sale of stock or other securities, or other income derived with respect to our business of investing in such stock or securities,
 and net income derived from interests in "qualified publicly traded partnerships" (generally, partnerships that are traded
 on an established securities market or tradable on a secondary market, other than partnerships that could qualify as RICs if such
 partnerships were domestic corporations) (the "90% Income Test"); and

 diversify our holdings
 so that at the end of each quarter of the taxable year:

 at least 50% of the value
 of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such
 other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting
 securities of the issuer; and

 no more than 25% of the
 value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer
 or of two or more issuers that are controlled, as determined under applicable tax rules, by us and that are engaged in the same or
 similar or related trades or businesses or in the securities of one or more qualified publicly traded partnerships (the "Diversification
 Tests").

 We
may invest in partnerships, including qualified publicly traded partnerships, which may result in our being subject to state, local or
foreign income and franchise or withholding liabilities.

 Any
underwriting fees paid by us are not deductible. We may be required to recognize taxable income in circumstances in which we do not receive
cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue discount (such as
debt instruments with PIK interest or, in certain cases, with increasing interest rates or issued with warrants), we must include in
income each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing
such income is received by us in the same taxable year. Because any original issue discount accrued will be included in our investment
company taxable income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the
Distribution Requirement, even though we will not have received any corresponding cash amount.

 Although
we do not presently expect to do so, we are authorized to borrow funds and to sell assets in order to satisfy the Distribution Requirement.
However, under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt obligations and other senior
securities are outstanding unless certain "asset coverage" tests are met. See "Business — Regulation —
Senior Securities." Moreover, our ability to dispose of assets to satisfy the Distribution Requirement may be limited by (1) the
illiquid nature of our portfolio and/or (2) other requirements relating to our qualification as a RIC, including the Diversification
Tests. If we dispose of assets in order to meet the Distribution Requirement or avoid the imposition of excise tax, we may make such
dispositions at times that, from an investment standpoint, are not advantageous.

 Some
of the income and fees that we may recognize will not count towards satisfaction of the 90% Income Test. In order to ensure that such
income and fees do not disqualify us as a RIC for a failure to satisfy the 90% Income Test, we may be required to recognize such income
and fees indirectly through one or more entities treated as corporations for U.S. federal income tax purposes. Such corporations will
be required to pay corporate level U.S. federal income tax on their earnings, which ultimately will reduce our return on such income
and fees.

 Failure
to Qualify as a RIC

 If
we were unable to continue to qualify for treatment as a RIC, we would be subject to U.S. federal income tax on all of our taxable income
at regular corporate rates. We would not be able to deduct distributions to stockholders, nor would they be required to be made. Distributions,
including distributions of net long-term capital gain, would generally be taxable to our stockholders as ordinary dividend income to
the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, corporate distributees
would be eligible for the dividends received deduction. Distributions in excess of our current and accumulated earnings and profits would
be treated first as a return of capital to the extent of the stockholder's tax basis in their shares of the RIC, and any distributions
in excess of tax basis would be treated as a capital gain. If we fail to qualify as a RIC for a period greater than two taxable years,
to qualify as a RIC in a subsequent year we may be subject to regular corporate level U.S. federal income tax on any net built-in gains
with respect to certain of our assets ( i.e., the excess of the aggregate gains, including items of income, over aggregate losses
that would have been realized with respect to such assets if we had been liquidated) that we elect to recognize on requalification or
when recognized over the next five years.

 Company

of our investment practices are subject to special and complex U.S. federal income tax provisions that may, among other things, (1) disallow,
suspend or otherwise limit the allowance of certain losses or deductions, including the dividends received deduction, (2) convert lower
taxed long-term capital gains and qualified dividend income into higher taxed short-term capital gains or ordinary income, (3) convert
ordinary loss or a deduction into capital loss (the deductibility of which is more limited), (4) cause us to recognize income or gain
without a corresponding receipt of cash, (5) adversely affect the time as to when a purchase or sale of stock or securities is deemed
to occur, (6) adversely alter the characterization of certain complex financial transactions and (7) produce income that will not qualify
as good income for purposes of the 90% Income Test described above. We will monitor our transactions and may make certain tax elections
and may be required to borrow money or dispose of securities to mitigate the effect of these rules and prevent disqualification as a
RIC.

we make in securities issued at a discount or providing for deferred interest or payment of interest in kind are subject to special tax
rules that will affect the amount, timing and character of distributions to stockholders. For example, if we hold debt obligations that
are treated under applicable tax rules as having original issue discount (such as debt instruments with PIK interest or, in certain cases,
with increasing interest rates or issued with warrants), we will generally be required to accrue daily as income a portion of the discount
and to distribute such income each year to avoid U.S. federal income and excise taxes. Since in certain circumstances we may recognize
income before or without receiving cash representing such income, we may have difficulty making distributions in the amounts necessary
to satisfy the requirements for maintaining RIC tax treatment and for avoiding U.S. federal income and excise taxes. Accordingly, we
may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce
new investment originations to meet these distribution requirements. If we are not able to obtain cash from other sources, we may fail
to qualify for tax treatment as a RIC and thereby be subject to corporate-level U.S. federal income tax.

 Gain
or loss realized by us from warrants acquired by us as well as any loss attributable to the lapse of such warrants generally will be
treated as capital gain or loss. Such gain or loss generally will be long term or short term, depending on how long we held a particular
warrant.

 In
the event we invest in foreign securities, we may be subject to withholding and other foreign taxes with respect to those securities.
In that case, our yield on those securities would be decreased. We do not expect to satisfy the requirements necessary to pass through
to our stockholders their share of the foreign taxes paid by us.

 If
we purchase shares in a "passive foreign investment company'' (a "PFIC''), we may be subject to U.S.
federal income tax on a portion of any "excess distribution'' or gain from the disposition of such shares even if such
income is distributed as a taxable dividend by us to our stockholders. Additional charges in the nature of interest may be imposed on
us in respect of deferred taxes arising from such distributions or gains. If we invest in a PFIC and elect to treat the PFIC as a "qualified
electing fund'' under the Code (a "QEF''), in lieu of the foregoing requirements, we will be required to
include in income each year a portion of the ordinary earnings and net capital gain of the QEF, even if such income is not distributed
to us. Alternatively, we may be able to elect to mark-to-market at the end of each taxable year our shares in certain PFICs; in this
case, we will recognize as ordinary income any increase in the value of such shares, and as ordinary loss any decrease in such value
to the extent it does not exceed prior increases included in income. Under either election, we may be required to recognize in a year
income in excess of our distributions from PFICs and our proceeds from dispositions of PFIC stock during that year, and such income will
nevertheless be subject to the Distribution Requirement and will be taken into account for purposes of the 4% U.S. federal excise tax
described above.

inclusions from a QEF will be "good income'' for purposes of the 90% Income Test provided that they are derived in
connection with our business of investing in stocks and securities or the QEF distributes such income to us in the same taxable year
in which the income is included in our income.

 Item
1A. Risk Factors

 Before
you invest in our securities, you should be aware of various risks, including those described below. You should carefully consider these
risk factors, together with all of the other information included in this Form 10-K, before you decide whether to make an investment
in our securities. The risks set out below are not the only risks we face. The risks described below, as well as additional risks and
uncertainties presently unknown by us or currently not deemed significant could negatively affect our business, financial condition and
results of operations. In such case, our NAV and the trading price of our common stock or other securities could decline, and you may
lose all or part of your investment.

 RISK RELATING
TO OUR BUSINESS AND STRUCTURE

Risks in the Current Environment

 We
are currently operating in a period of capital markets disruptions and economic uncertainty. Such market conditions may materially and
adversely affect the yields, and increase the risks of, our investments in portfolio companies, and make it more difficult for us to
raise equity capital should we choose to do so.

 From
time to time, capital markets may experience periods of disruption and instability. The U.S. capital markets have experienced extreme
volatility and disruption following the global outbreak of coronavirus ("COVID-19") that began in December 2019. Even after
the COVID-19 pandemic has generally subsided, the U.S. economy, as well as other major economies, may experience a recession, and we
anticipate our businesses would be materially and adversely affected by a prolonged recession in the United States and other major markets.
Disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting
in illiquidity in parts of the capital markets. Any future outbreaks could have an adverse impact on the ability of lenders to originate
loans, the volume and type of loans originated, the ability of borrowers to make payments and the volume and type of amendments and waivers
granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount
and quality of loans available for investment by the Company and returns to the Company, among other things. Pandemics and other future
market disruptions and/or illiquidity could have an adverse effect on our business, financial condition, results of operations and cash
flows. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a
decision by lenders not to extend credit to us. These events could limit our investment originations, limit our ability to grow and have
a material negative impact on our operating results and the fair values of our debt and equity investments. We may have to access, if
available, alternative markets for debt and equity capital, and a severe disruption in the global financial markets, deterioration in
credit and financing conditions or uncertainty regarding U.S. government spending and deficit levels or other global economic conditions
could have a material adverse effect on our business, financial condition and results of operations.

 For
example, between 2008 and 2009, the U.S. and global capital markets were unstable as evidenced by periodic disruptions in liquidity in
the debt capital markets, significant write-offs in the financial services sector, the re-pricing of credit risk in the broadly syndicated
credit market and the failure of major financial institutions. Despite actions of the U.S. federal government and foreign governments,
these events contributed to worsening general economic conditions that materially and adversely impacted the broader financial and credit
markets and reduced the availability of debt and equity capital for the market as a whole and financial services firms in particular.

capital may be difficult to raise during periods of adverse or volatile market conditions because, subject to some limited exceptions,
as a BDC, we are generally not able to issue additional shares of our common stock at a price less than NAV without first obtaining approval
for such issuance from our stockholders and our independent directors. Volatility and dislocation in the capital markets can also create
a challenging environment in which to raise or access debt capital. The current market and future market conditions similar to those
experienced from 2008 through 2009 for any substantial length of time could make it difficult to extend the maturity of or refinance
our existing indebtedness or obtain new indebtedness with similar terms and any failure to do so could have a material adverse effect
on our business. The debt capital that will be available to us in the future, if at all, may be at a higher cost and on less favorable
terms and conditions than what we currently experience, including being at a higher cost in a rising interest rate environment. If any
of these conditions appear, they may have an adverse effect on our business, financial condition, and results of operations. These events
could limit our investment originations, limit our ability to increase returns to equity holders through the effective use of leverage,
and negatively impact our operating results.

 In
addition, significant changes or volatility in the capital markets may also have a negative effect on the valuations of our investments.
While most of our investments are not publicly traded, applicable accounting standards require us to assume as part of our valuation
process that our investments are sold in a principal market to market participants (even if we plan on holding an investment through
its maturity). Significant changes in the capital markets may also affect the pace of our investment activity and the potential for liquidity
events involving our investments. Thus, the illiquidity of our investments may make it difficult for us to sell our investments to access
capital if required, and as a result, we could realize significantly less than the value at which we have recorded our investments if
we were required to sell them for liquidity purposes. An inability to raise or access capital could have a material adverse effect on
our business, financial condition or results of operations.

 Governmental
authorities worldwide have taken increased measures to stabilize the markets and support economic growth. The success of these measures
is unknown and they may not be sufficient to address the market dislocations or avert severe and prolonged reductions in economic activity.

 Events
outside of our control, including terrorist attacks, acts of war, natural disasters or public health crises, could negatively affect
the portfolio companies in which we invest and make the valuation of those investments more uncertain.

 Periods
of market volatility have occurred and could continue to occur in response to pandemics or other events outside of our control, including
terrorist attacks, acts of war, natural disasters, public health crises or similar events. These types of events have adversely affected
and could continue to adversely affect operating results for us and for our portfolio companies.

 In
February 2022, Russia launched a large-scale invasion of Ukraine. The extent and duration of Russian military action in the Ukraine,
resulting sanctions and resulting future market disruptions, including declines in stock markets in Russia and elsewhere and the value
of the ruble against the U.S. dollar, are impossible to predict, but have been and could continue to be significant. Any such disruptions
caused by Russian military or other actions (including cyberattacks and espionage) or resulting from actual or threatened responses to
such actions have caused and could continue to cause disruptions to portfolio companies located in Europe or that have substantial business
relationships with European or Russian companies.

 The recent outbreak of
hostilities in the Middle East could also escalate to nearby areas.

 The
extent and duration of these military actions, conflicts and resulting market disruptions are impossible to predict, but have been and
could continue to be substantial, and any such market disruptions could affect our portfolio companies' operations. As a result,
our portfolio investments could decline in value or our valuation of them could become uncertain.

 We
have evaluated subsequent events from September 30, 2023 through the filing date of this annual report on Form 10-K. However, as the
discussion in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations relates to the Company's
financial statements for the annual period ended September 30, 2023, the analysis contained herein may not fully account for market event
impacts. As of September 30, 2023, the Company valued its portfolio investments in conformity with U.S. generally accepted accounting
principles ("GAAP") based on the facts and circumstances known by the Company at that time, or reasonably expected to be
known at that time. Due to the overall volatility that market events may have caused during the months following our most recent valuation
(as of September 30, 2023), any valuations conducted now or in the future in conformity with U.S. GAAP could result in a lower fair value
of our portfolio.

 Rising
interest rates may increase our borrowing costs and reduce the net return that we are able to achieve on debt investments in portfolio
companies, and may also increase the risk of default on our portfolio company loans.

 In
2023, the Federal Reserve raised short-term interest rates and has indicated additional interest rate increases may come. Changing interest
rates may have unpredictable effects on markets, may result in heightened market volatility and may detract from our performance to the
extent we are exposed to such interest rates and/or volatility. In periods of rising interest rates, such as the current interest rate
environment, to the extent we borrow money subject to a floating interest rate, our cost of funds would increase, which could reduce
our net investment income. Further, rising interest rates could also adversely affect our performance if such increases cause our borrowing
costs to rise at a rate in excess of the rate that our investments yield. Further, rising interest rates could also adversely affect
our performance if we hold investments with floating interest rates, subject to specified minimum interest rates (such as a SOFR floor),
while at the same time engaging in borrowings subject to floating interest rates not subject to such minimums. In such a scenario, rising
interest rates may increase our interest expense, even though our interest income from investments is not increasing in a corresponding
manner as a result of such minimum interest rates.

 If
general interest rates continue to rise, there is a risk that the portfolio companies in which we hold floating rate securities will
be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Rising interest rates
could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse
effect on their business and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase
pressure on us to provide fixed rate loans to our portfolio companies, which could adversely affect our net investment income, as increases
in our cost of borrowed funds would not be accompanied by increased interest income from such fixed-rate investments.

 Further
downgrades of the U.S. credit rating, automatic spending cuts, or another government shutdown could negatively impact our cost of borrowing
and the net return on our investments.

 U.S.
debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns,
or a recession in the United States. Although U.S. lawmakers passed legislation to raise the federal debt ceiling on multiple occasions,
ratings agencies have lowered or threatened to lower the long-term sovereign credit rating on the United States. The impact of this or
any further downgrades to the U.S. government's sovereign credit rating or its perceived creditworthiness could adversely affect
the U.S. and global financial markets and economic conditions. Absent further quantitative easing by the Federal Reserve, these developments
could cause interest rates and borrowing costs to rise, which may negatively impact our ability to access the debt markets on favorable
terms. If our borrowing costs were to rise on account of these factors, and we were unable to raise the rates of return on our portfolio
company debt, our net return on investments would decline.

 Economic
recessions or downturns could impair our portfolio companies, increase our funding costs and limit our access to capital.

 Many
of our portfolio companies may be susceptible to economic slowdowns or recessions and may be unable to repay our debt investments during
these periods. In the past, instability in the global capital markets resulted in disruptions in liquidity in the debt capital markets,
significant write-offs in the financial services sector, the re-pricing of credit risk in the broadly syndicated credit market and the
failure of major domestic and international financial institutions. In particular, in past periods of instability, the financial services
sector was negatively impacted by significant write-offs as the value of the assets held by financial firms declined, impairing their
capital positions and abilities to lend and invest. In addition, continued uncertainty between the United States and other countries,
including China and Russia, with respect to trade policies, treaties, and tariffs, among other factors, have caused disruption in the
global markets. There can be no assurance that market conditions will not worsen in the future.

 In
an economic downturn, we may have non-performing assets or non-performing assets may increase, and the value of our portfolio is likely
to decrease during these periods. Adverse economic conditions may also decrease the value of any collateral securing our loans. A severe
recession may further decrease the value of such collateral and result in losses of value in our portfolio and a decrease in our revenues,
net income, assets and net worth. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital
markets or result in a decision by lenders not to extend credit to us on terms we deem acceptable. These events could prevent us from
increasing investments and harm our operating results.

 The
occurrence of recessionary conditions and/or negative developments in the domestic and international credit markets may significantly
affect the markets in which we do business, the value of our investments, and our ongoing operations, costs and profitability. Any such
unfavorable economic conditions, including rising interest rates, may also increase our funding costs, limit our access to capital markets
or negatively impact our ability to obtain financing, particularly from the debt markets. In addition, any future financial market uncertainty
could lead to financial market disruptions and could further impact our ability to obtain financing. These events could limit our investment
originations, limit our ability to grow and negatively impact our operating results and financial condition.

 Risks
Related to Our Business

 We
have internalized our operating structure, including our management and investment functions, with the expectation that we will be able
to operate more efficiently with lower costs, but this may not be the case.

 On
November 18, 2020, the board of directors approved adoption of an internalized management structure, which we have operated under effective
January 1, 2021. There can be no assurances that internalizing our management structure will be and remain beneficial to us and our stockholders,
as we may incur the costs and experience the risks discussed below, and we may not be able to effectively replicate the services previously
provided to us by our former investment adviser and administrator.

 While
we no longer bear the costs of the various fees and expenses we previously paid under the investment management and administration agreements
with our previous adviser and administrator, we have other significant direct expenses. These include general and administrative costs,
legal, accounting and other governance expenses and costs and expenses related to managing our portfolio. Certain of these costs may
be greater during the early stages of the transition process. We also incur the compensation and benefits costs of our officers and other
employees and consultants. In addition, we may be subject to potential liabilities commonly faced by employers, such as workers disability
and compensation claims, potential labor disputes and other employee-related liabilities and grievances.

 We
may also experience operational disruptions resulting from the transition from external to internal management, and we could fail to
effectively manage our internalization over the longer term, all of which could adversely affect our performance.

 If
the expenses we incur as an internally-managed company are higher than the expenses we would have paid and/or reimbursed under the externally-managed
structure, our earnings per share may be lower and our share value could suffer.

 As
an internally managed BDC, we are dependent upon our management team and other professionals, and if we are not able to hire and retain
qualified personnel, we will not realize the anticipated benefits of the internalization.

 Our
ability to achieve our investment objectives and to make distributions to our stockholders depends upon the performance of our management
team and professionals. We may experience difficulty identifying, engaging and retaining management, investment and general and administrative
personnel with the necessary expertise and credit-related investment experience. As an internally managed BDC, our ability to offer more
competitive and flexible compensation structures, such as offering both a profit-sharing plan and an equity incentive plan, is subject
to the limitations imposed by the 1940 Act, which could limit our ability to attract and retain talented investment management professionals.

 If
we are unable to attract and retain highly talented professionals for the internal management of our Company, we will not realize the
anticipated benefits of the internalization, and the results of our operation could deteriorate.

 We
may suffer credit and capital losses.

 Private
debt in the form of secured loans to corporate and asset-based borrowers is highly speculative and involves a high degree of risk of
credit loss, and therefore an investment in our securities may not be suitable for someone with a low tolerance for risk. These risks
are likely to increase during an economic recession, such as the economic recession or downturn that the United States and many other
countries have recently experienced or are experiencing.

we use borrowed funds to make investments or fund our business operations, we are exposed to risks typically associated with leverage
which increase the risk of investing in us.

 We
have borrowed funds, including through the issuance of $57.5 million in aggregate principal amount of 5.25% unsecured notes due November
1, 2028 (the "Notes" or the "2028 Notes") to leverage our capital structure, which is generally considered a
speculative investment technique. In addition, on December 15, 2022, the Company entered into a 3-year $50.0 million revolving credit
facility (the "Credit Facility") with Woodforest Bank, N.A. ("Woodforest"), Valley National Bank, and Axiom Bank,
(collectively, the "Lenders"). As a result:

 our common stock may be
 exposed to an increased risk of loss because a decrease in the value of our investments may have a greater negative impact on the
 value of our common stock than if we did not use leverage;

 if we do not appropriately
 match the assets and liabilities of our business, adverse changes in interest rates could reduce or eliminate the incremental income
 we make with the proceeds of any leverage;

 our ability to pay distributions
 on our common stock may be restricted if our asset coverage ratio with respect to each of our outstanding senior securities representing
 indebtedness and our outstanding preferred shares, as defined by the 1940 Act, is not at least 200% and any amounts used to service
 indebtedness or preferred stock would not be available for such distributions;

 any credit facility to
 which we became a party may be subject to periodic renewal by our lenders, whose continued participation cannot be guaranteed;

 any credit facility to
 which we became a party may contain covenants restricting our operating flexibility;

 we, and indirectly our
 stockholders, bear the cost of issuing and paying interest or dividends on such securities; and

 any convertible or exchangeable
 securities that we issue may have rights, preferences and privileges more favorable than those of our common shares.

 Under
the provisions of the 1940 Act, we are permitted, as a BDC, to issue debt securities or preferred stock and/or borrow money from banks
and other financial institutions, which we collectively refer to as "senior securities", only in amounts such that our asset
coverage ratio equals at least 200% (or 150% if, pursuant to the 1940 Act, certain requirements are met) after each issuance of senior
securities.

 For
a discussion of the terms of the Notes, see "Management's Discussion and Analysis of Financial Condition and Results of Operations
- Financial Condition, Liquidity and Capital Resources."

 As of September 30, 2023, the Company's
asset coverage was 270.7% after giving effect to leverage and therefore the Company's asset coverage is above 200%, the minimum
asset coverage requirement under the 1940 Act.

 The
lack of liquidity in our investments may adversely affect our business.

 We
anticipate that our investments generally will be made in private companies. Substantially all of these securities will be subject to
legal and other restrictions on resale or will be otherwise less liquid than publicly traded securities. The illiquidity of our investments
may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion
of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded our investments. In addition,
we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public
information regarding such portfolio company.

 A
substantial portion of our portfolio investments will be recorded at fair value as determined in good faith by our valuation designee
under the oversight of our board of directors and, as a result, there may be uncertainty regarding the value of our portfolio investments.

 The
debt and equity securities in which we invest for which market quotations are not readily available will be valued at fair value as determined
in good faith by our Chief Financial Officer, the Company's valuation designee, under the oversight of our board of directors.
Most of our investments (other than cash and cash equivalents) will be classified as Level 3 under Accounting Standards Codification
Topic 820 - Fair Value Measurements and Disclosures. This means that our portfolio valuations will be based on unobservable inputs and
our own assumptions about how market participants would price the asset or liability in question. We expect that inputs into the determination
of fair value of our portfolio investments will require significant management judgment or estimation. Even if observable market data
are available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that
the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied
by disclaimers materially reduces the reliability of such information. We have retained the services of independent valuation firms to
review the valuation of various loans and securities. The types of factors that we may take into account in determining the fair value
of our investments generally include, as appropriate, comparison to publicly traded securities including such factors as yield, maturity
and measures of credit quality, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio
company's ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business
and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently
uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially
from the values that would have been used if a ready market for these loans and securities existed. Our NAV could be adversely affected
if our determinations regarding the fair value of our investments were materially higher or lower than the values that we ultimately
realize upon the disposal of such loans and securities.

 We
are a non-diversified investment company within the meaning of the 1940 Act, and therefore we are not limited with respect to the proportion
of our assets that may be invested in securities of a single issuer.

 We
are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the
1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. We also have not adopted any
policy restricting the percentage of our assets that may be invested in a single portfolio company. To the extent that we assume large
positions in the securities of a small number of issuers, our NAV may fluctuate to a greater extent than that of a diversified investment
company as a result of changes in the financial condition or the market's assessment of the issuer. We may also be more susceptible
to any single economic or regulatory occurrence than a diversified investment company. Beyond our income tax diversification requirements
under Subchapter M of the Code, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively
few portfolio companies. (Note our significant investment in our affiliate FlexFIN – see Risks Related to our Investments).

 We are exposed to risks associated with changes in interest rates.

rate fluctuations may have a substantial negative impact on our investments, the value of our common stock and our rate of return on
invested capital. A reduction in the interest rates on new investments relative to interest rates on current investments could also have
an adverse impact on our net interest income. Further increases in interest rates could decrease the value of any investments we hold
which earn fixed interest rates and also could increase our interest expense, thereby decreasing our net income. Also, an increase in
interest rates available to investors could make investment in our common stock less attractive if we are not able to increase our dividend
rate, which could reduce the value of our common stock.

 Loans
under our Credit Facility and the financial credit we extend to our portfolio companies bear interest based on SOFR, but experience with
SOFR based loans is limited.

 Loans
under our current Credit Facility bear interest at a rate based upon the Secured Overnight Financing Rate (SOFR) published by the Federal
Reserve Bank of New York. Also, the secured terms loans that we make to our portfolio companies and the secured notes of our portfolio
companies in which we invest bear interest at SOFR based rates. Previously, our credit facilities and our debt investments in portfolio
companies bore interest at U.S dollar London Interbank Overnight (USD LIBOR) rates. ICE Benchmark Administration, the authorized and
regulated administrator of LIBOR, ended publication of the one-week and two-month USD LIBOR tenors on December 31, 2021, and ended publication
of the remaining USD LIBOR tenors on June 30, 2023. The Adjustable Interest Rate (LIBOR) Act (the "LIBOR Act") was enacted
in March 2022 to permit financing agreements that contain a LIBOR-based benchmark without adequate "fallback provisions"
to be automatically replaced by a benchmark recommended by the Federal Reserve. In January 2023, the Federal Reserve adopted a final
rule implementing the LIBOR Act that, among other things, identifies the applicable SOFR-based benchmark replacements under the LIBOR
Act.

 SOFR is considered to be a risk-free rate, and USD LIBOR was a risk
weighted rate. Thus, SOFR tends to be a lower rate than USD LIBOR, because SOFR does not contain a risk component. This difference may
negatively impact our net interest margin of our investments. Also, the use of SOFR based rates is relatively new, and experience with
SOFR based rate loans is limited. There could be unanticipated difficulties or disruptions with the calculation and publication of SOFR
based rates. This could result in increased borrowing costs for the Company or could adversely impact the interest income we receive from
our portfolio companies or the market value of the financial obligations that are due to us from our portfolio companies.

we use debt to finance various investments, changes in interest rates will affect our cost of capital and net investment income.

 Because we borrow money to make investments, our
net investment income will depend, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest
those funds. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse
effect on our net investment income in the event we use our existing debt to finance our investments. In periods of rising interest rates,
such as the current period we are in, our cost of funds will increase to the extent we access any credit facility with a floating interest
rate, which could reduce our net investment income to the extent any debt investments have fixed interest rates. We expect that our long-term
fixed-rate investments will be financed primarily with issuances of equity and long-term debt securities. We may use interest rate risk
management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate
hedging activities to the extent permitted by the 1940 Act.

 You should also be aware that, to the extent we
make floating debt investments, a rise in the general level of interest rates typically leads to higher interest rates applicable to our
debt investments.

 If
our investments are not managed effectively, we may be unable to achieve our investment objective.

 Our
ability to achieve our investment objective will depend on our ability to manage our business, which will depend on the internalized
management team. Accomplishing this result is largely a function of the internalized management team's ability to provide quality
and efficient services to us. They may also be required to provide managerial assistance to our portfolio companies. These demands on
their time may distract them or slow our rate of investment. Any failure to manage our business effectively could have a material adverse
effect on our business, financial condition and results of operations.

 We
may experience fluctuations in our periodic operating results.

 We
could experience fluctuations in our periodic operating results due to a number of factors, including the interest rates payable on the
debt securities we acquire, the default rate on such securities, the performance of our portfolio companies, the level of our expenses
(including the interest rates payable on our borrowings), the dividend rates payable on preferred stock we issue, variations in and the
timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and
general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance
in future periods.

 Any
failure on our part to maintain our status as a BDC could reduce our operating flexibility.

 If
we fail to maintain our status as a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would subject
us to substantially more onerous regulatory restrictions under the 1940 Act and correspondingly decrease our operating flexibility.

 We
may have difficulty paying required distributions if we recognize income before or without receiving cash representing such income.

 For
U.S. federal income tax purposes, we may include in income certain amounts that we have not yet received in cash, such as original issue
discount, which may arise if we receive warrants in connection with the making of a loan or possibly in other circumstances, such as
PIK interest, which represents contractual interest added to the loan balance and due at the end of the loan term. Such original issue
discount, which could be significant relative to our overall investment activities, or increases in loan balances as a result of PIK
arrangements are included in income before we receive any corresponding cash payments. We also may be required to include in income certain
other amounts that we do not receive in cash.

 Since
in certain cases we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the
tax requirement to distribute at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized
net long-term capital losses, if any, to maintain our tax treatment as a RIC. Accordingly, we may have to sell some of our investments
at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these
distribution requirements. If we are not able to raise cash from other sources, we may fail to qualify and maintain our tax treatment
as a RIC and thus become subject to corporate-level U.S. federal income tax. See "Taxation as a RIC" and "Failure to
Qualify as a RIC".

 We
may not be able to pay distributions to our shareholders.

 We cannot assure that we will achieve investment
results that will allow us to pay cash distributions. Our ability to pay distributions might be adversely affected by, among other things,
the impact of one or more of the risk factors described herein. In addition, the inability to satisfy the asset coverage test applicable
to us as a BDC could limit our ability to pay distributions. As of September 30, 2023, the Company's asset coverage was 270.7% after
giving effect to leverage and therefore the Company's asset coverage is above 200%, the minimum asset coverage requirement under
the 1940 Act. All distributions will be paid at the discretion of our board of directors and will depend on our earnings, our financial
condition, maintenance of our RIC tax treatment, compliance with applicable BDC regulations, and such other factors as our board of directors
may deem relevant from time to time. We cannot assure you that we will pay distributions to our stockholders in the future.

 The
highly competitive market in which we operate may limit our investment opportunities.

 A
number of entities compete with us to make the types of investments that we make. We compete with other BDCs and investment funds (including
public and private funds, commercial and investment banks, commercial financing companies, SBICs and, to the extent they provide an alternative
form of financing, private equity funds). Additionally, because competition for investment opportunities generally has increased among
alternative investment vehicles, such as hedge funds, those entities have begun to invest in areas in which they have not traditionally
invested. As a result of these new entrants, competition for investment opportunities has intensified in recent years and may intensify
further in the future. Some of our existing and potential competitors are substantially larger and have considerably greater financial,
technical and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources
that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which
could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors
are not subject to the regulatory restrictions and valuation requirements that the 1940 Act imposes on us as a BDC and the tax consequences
of qualifying as a RIC. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business,
financial condition and results of operations. Also, as a result of this existing and potentially increasing competition, we may not
be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able
to identify and make investments that are consistent with our investment objective.

 We
do not seek to compete primarily based on the interest rates we offer, and we believe that some of our competitors make loans with interest
rates that are comparable to or lower than the rates we offer. We may lose investment opportunities if we do not match our competitors'
pricing, terms and structure. If we match our competitors' pricing, terms and structure, we may experience decreased net interest
income and increased risk of credit loss. A significant part of our competitive advantage stems from the fact that the market for investments
in mid-sized companies is underserved by traditional commercial banks and other financial institutions. A significant increase in the
number and/or size of our competitors in this target market could force us to accept less attractive investment terms. Furthermore, many
of our competitors have greater experience operating under the regulatory restrictions of the 1940 Act and under an internalized management
structure.

 In
the event we make distributions, we would need additional capital to finance our growth and such capital may not be available on favorable
terms or at all.

 We
have elected and intend to qualify annually to be taxed for U.S. federal income tax purposes as a RIC under Subchapter M of the Code.
As a RIC, we must meet certain requirements, including source-of-income, asset diversification and distribution requirements in order
to not have to pay corporate-level U.S. on income we distribute to our stockholders as distributions, which allows us to substantially
reduce or eliminate our corporate-level U.S. federal income tax liability. As a BDC, we are generally required to meet a coverage ratio
of total assets to total senior securities, which includes all of our borrowings and any preferred stock we may issue in the future,
of at least 200% (or 150% if, pursuant to the 1940 Act, certain requirements are met) at the time we issue any debt or preferred stock.
This requirement limits the amount of our leverage. Because we will continue to need capital to grow our investment portfolio, this limitation
may prevent us from incurring debt or issuing preferred stock and require us to raise additional equity at a time when it may be disadvantageous
to do so. We cannot assure you that debt and equity financing will be available to us on favorable terms, or at all, and debt financings
may be restricted by the terms of any of our outstanding borrowings. In addition, as a BDC, we are generally not permitted to issue common
stock priced below NAV without stockholder approval. If additional funds are not available to us, we could be forced to curtail or cease
new lending and investment activities, and our NAV could decline.

 Our
board of directors may change our investment objective, operating policies and strategies without prior notice or stockholder approval.

 Our
board of directors has the authority to modify or waive certain of our operating policies and strategies without prior notice and without
stockholder approval. However, absent stockholder approval, we may not change the nature of our business so as to cease to be, or withdraw
our election as, a BDC. We cannot predict the effect any changes to our current operating policies and strategies would have on our business,
operating results or value of our stock. Nevertheless, the effects could adversely affect our business and impact our ability to make
distributions and cause you to lose all or part of your investment.

we borrow money, the potential for loss on amounts invested in us will be magnified and may increase the risk of investing in us.

 Borrowings,
also known as leverage, magnify the potential for loss on invested equity capital. If we use leverage to partially finance our investments,
which we have done historically, you will experience increased risks of investing in our securities. We issued the Notes, entered into
the Credit Facility, and may issue other debt securities or enter into other types of borrowing arrangements in the future. If the value
of our assets decreases, leveraging would cause our NAV to decline more sharply than it otherwise would have had we not leveraged. Similarly,
any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could
negatively affect our ability to make common stock distributions or scheduled debt payments. Leverage is generally considered a speculative
investment technique and we only intend to use leverage if expected returns will exceed the cost of borrowing.

 As
of September 30, 2023, there was $85.9 million of outstanding borrowings. The weighted average interest rate charged on our borrowings
as of September 30, 2023 was 5.91% (exclusive of debt issuance costs). We will need to generate sufficient cash flow to make these required
interest payments. If we are unable to meet the financial obligations under the Notes, the holders thereof will have the right to declare
the principal amount and accrued and unpaid interest on the outstanding Notes to be due and payable immediately. If we are unable to
meet the financial obligations under the Credit Facility or any other credit facility we enter into, the lenders thereunder would likely
have a superior claim to our assets over our stockholders.

 We
are dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect
the market price of our common stock and our ability to pay distributions.

 Our
business is dependent on our and third parties' communications and information systems. Any failure or interruption of those systems,
including as a result of the termination of an agreement with any third-party service providers, could cause delays or other problems
in our activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly
or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and
adversely affect our business. There could be:

 sudden electrical or telecommunications outages;

 natural disasters such as earthquakes, tornadoes and
 hurricanes;

 disease pandemics (including the COVID-19 outbreak);

 events arising from local or larger scale political
 or social matters, including terrorist acts; and

 cyber-attacks.

 These
events, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our common stock
and our ability to pay distributions to our stockholders.

 A
failure of cybersecurity systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity
planning could impair our ability to conduct business effectively.

 The
occurrence of a disaster, such as a cyber-attack against us or against a third-party that has access to our data or networks, a natural
catastrophe, an industrial accident, failure of our disaster recovery systems, or consequential employee error, could have an adverse
effect on our ability to communicate or conduct business, negatively impacting our operations and financial condition. This adverse effect
can become particularly acute if those events affect our electronic data processing, transmission, storage, and retrieval systems, or
impact the availability, integrity, or confidentiality of our data.

 We
depend heavily upon computer systems to perform necessary business functions. Despite our implementation of a variety of security measures,
our computer systems, networks, and data, like those of other companies, could be subject to cyber-attacks and unauthorized access, use,
alteration, or destruction, such as from physical and electronic break-ins or unauthorized tampering, malware and computer virus attacks,
or system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary,
and other information processed, stored in, and transmitted through our computer systems and networks. Such an attack could cause interruptions
or malfunctions in our operations, which could result in financial losses, litigation, regulatory penalties, client dissatisfaction or
loss, reputational damage, and increased costs associated with mitigation of damages and remediation.

 Third
parties with which we do business may also be sources of cybersecurity or other technological risks. We outsource certain functions and
these relationships allow for the storage and processing of our information, as well as customer, counterparty, employee and borrower
information. Cybersecurity failures or breaches our service providers (including, but not limited to, accountants, custodians, transfer
agents and administrators), and the issuers of securities in which we invest, also have the ability to cause disruptions and impact business
operations, potentially resulting in financial losses, interference with our ability to calculate its net asset value, impediments to
trading, the inability of our stockholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties,
reputation damages, reimbursement of other compensation costs, or additional compliance costs. While we engage in actions to reduce our
exposure resulting from outsourcing, ongoing threats may result in unauthorized access, loss, exposure or destruction of data, or other
cybersecurity incidents, with increased costs and other consequences, including those described above. In addition, substantial costs
may be incurred in order to prevent any cyber incidents in the future.

 Privacy
and information security laws and regulation changes, and compliance with those changes, may result in cost increases due to system changes
and the development of new administrative processes. In addition, we may be required to expend significant additional resources to modify
our protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks.
We currently do not maintain insurance coverage relating to cybersecurity risks, and we may be required to expend significant additional
resources to modify our protective measures or to investigate and remediate vulnerabilities or other exposures, and we may be subject
to litigation and financial losses that are not fully insured.

 Risks
Related to Our Investments

 We
may not realize gains from our equity investments.

 When
we make a debt investment, we may acquire warrants or other equity securities as well. In addition, we may invest directly in the equity
securities of portfolio companies. Our goal is ultimately to dispose of such equity interests and realize gains upon our disposition
of such interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly,
we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests
may not be sufficient to offset any other losses we experience.

 Our
investments are very risky and highly speculative.

 We have invested
primarily in senior secured first lien term loans and senior secured second lien term loans issued by private companies.

Secured Loans There is a risk that the collateral securing our loans may decrease in value over time, may be difficult to sell in
a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions,
including as a result of the inability of the portfolio company to raise additional capital, and, in some circumstances, our lien could
be subordinated to claims of other creditors. In addition, deterioration in a portfolio company's financial condition and prospects,
including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan.
Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the
loan's terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies.

Investments When we invest in senior secured first lien term loans or senior secured second lien term loans, we may receive warrants
or other equity securities as well. In addition, we may invest directly in the equity securities of portfolio companies. The warrants
or equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize
gains from our warrants or equity interests, and any gains that we do realize on the disposition of any warrants or equity interests
may not be sufficient to offset any other losses we experience.

 In
addition, investing in private companies involves a number of significant risks. See "Our investments in private portfolio companies
may be risky, and you could lose all or part of your investment" below.

 Our
investments in private portfolio companies may be risky, and you could lose all or part of your investment.

in private companies involve a number of significant risks. Generally, little public information exists about these companies, and we
are required to rely on the ability of our investment professionals to obtain adequate information to evaluate the potential returns
from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully
informed investment decision, and we may lose money on our investments. Private companies may have limited financial resources and may
be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value
of any collateral and a reduction in the likelihood of our realizing any guarantees we may have obtained in connection with our investment.
In addition, they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses,
which tend to render them more vulnerable to competitors' actions and market conditions, as well as general economic downturns.
Additionally, private companies are more likely to depend on the management talents and efforts of a small group of persons; therefore,
the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio
company and, in turn, on us. Private companies also generally have less predictable operating results, may from time to time be parties
to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence and may require
substantial additional capital to support their operations, finance expansion or maintain their competitive position. In addition, our
executive officers and directors may, in the ordinary course of business, be named as defendants in litigation arising from our investments
in these types of companies.

 We
have invested primarily in secured debt issued by our portfolio companies. In the case of our senior secured first lien term loans, the
portfolio companies usually have, or may be permitted to incur, other debt that ranks equally with the debt securities in which we invest.
With respect to our senior secured second lien term loans, the portfolio companies usually have, or may be permitted to incur, other
debt that ranks above or equally with the debt securities in which we invest. In the case of debt ranking above the senior secured second
lien term loans in which we invest, we would be subordinate to such debt in the event of an insolvency, liquidation, dissolution, reorganization
or bankruptcy of the relevant portfolio company and therefore the holders of debt instruments ranking senior to our investment in that
portfolio company would typically be entitled to receive payment in full before we receive any distribution. In the case of debt ranking
equally with debt securities in which we invest, we would have to share any distributions on an equal and ratable basis with other creditors
holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

 Additionally,
certain loans that we make to portfolio companies may be secured on a second priority basis by the same collateral securing senior secured
debt of such companies. The first priority liens on the collateral will secure the portfolio company's obligations under any outstanding
senior debt and may secure certain other future debt that may be permitted to be incurred by the portfolio company under the agreements
governing the loans. The holders of obligations secured by the first priority liens on the collateral will generally control the liquidation
of, and be entitled to receive proceeds from, any realization of the collateral to repay their obligations in full before us. In addition,
the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and
other factors. There can be no assurance that the proceeds, if any, from the sale or sales of all of the collateral would be sufficient
to satisfy the loan obligations secured by the second priority liens after payment in full of all obligations secured by the first priority
liens on the collateral. If such proceeds are not sufficient to repay amounts outstanding under the loan obligations secured by the second
priority liens, then we, to the extent not repaid from the proceeds of the sale of the collateral, will only have an unsecured claim
against the portfolio company's remaining assets, if any.

 The
rights we may have with respect to the collateral securing the loans we make to our portfolio companies with senior debt outstanding
may also be limited pursuant to the terms of one or more intercreditor agreements that we enter into with the holders of senior debt.
Under such an intercreditor agreement, at any time that obligations that have the benefit of the first priority liens are outstanding,
any of the following actions that may be taken in respect of the collateral will be at the direction of the holders of the obligations
secured by the first priority liens: (1) the ability to cause the commencement of enforcement proceedings against the collateral; (2)
the ability to control the conduct of such proceedings; (3) the approval of amendments to collateral documents; (4) releases of liens
on the collateral; and (5) waivers of past defaults under collateral documents. We may not have the ability to control or direct such
actions, even if our rights are adversely affected.

 Our
portfolio companies may prepay loans, which prepayment may reduce stated yields if capital returned cannot be invested in transactions
with equal or greater expected yields.

 Our
loans to portfolio companies are prepayable at any time, and most of them at no premium to par. It is uncertain as to when each loan
may be prepaid. Whether a loan is prepaid will depend both on the continued positive performance of the portfolio company and the existence
of favorable financing market conditions that allow such company the ability to replace existing financing with less expensive capital.
As market conditions change frequently, it is unknown when, and if, this may be possible for each portfolio company. In the case of some
of these loans, having the loan prepaid early may reduce the achievable yield for us below the stated yield to maturity contained herein
if the capital returned cannot be invested in transactions with equal or greater expected yields.

 Our
failure to make follow-on investments in our portfolio companies could impair the value of our portfolio and our ability to make follow-on
investments in certain portfolio companies may be restricted.

 Following
an initial investment in a portfolio company, provided that there are no restrictions imposed by the 1940 Act, we may make additional
investments in that portfolio company as "follow-on" investments in order to: (1) increase or maintain in whole or in part
our equity ownership percentage; (2) exercise warrants, options or convertible securities that were acquired in the original or subsequent
financing; or (3) attempt to preserve or enhance the value of our initial investment.

 We
have the discretion to make any follow-on investments, subject to the availability of capital resources. We may elect not to make follow-on
investments or otherwise lack sufficient funds to make those investments. Our failure to make follow-on investments may, in some circumstances,
jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to
increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may
elect not to make such follow-on investment because we may not want to increase our concentration of risk, because we prefer other opportunities,
because we are inhibited by compliance with BDC requirements or because we might lose our RIC tax treatment. We also may be restricted
from making follow-on investments in certain portfolio companies to the extent that affiliates of ours hold interests in such companies.

 As
of September 30, 2023, 16.2% of our total assets were invested in FlexFin, our affiliate's asset-based lending business.

 This
significant exposure subjects our Company to various risks associated with such business (which are identified below) to a much greater
extent than companies not similarly concentrated.

 Client
borrowers, particularly with respect to asset-based lending activities, may lack the operating history, cash flows or balance sheet necessary
to support other financing options and may expose us to additional risk.

 A
portion of our loan portfolio consists, through FlexFIN, of asset-based lending involving gemstones. Some of these products arise out
of relationships with clients who lack the operating history, cash flows or balance sheet necessary to qualify for other financing options.
This could increase our risk of loss.

 16.2%
of the Company's total assets (as of September 30, 2023) are invested in our affiliate's asset-based lending business and
its activities are influenced by volatility in prices of gemstones and jewelry.

 Our
affiliate's asset-based lending business is impacted by volatility in gemstone and jewelry prices. Among the factors that can impact
the price of gemstones and jewelry are supply and demand of gemstones; political, economic, and global financial events; movement of
the U.S. dollar versus other currencies; and the activity of large speculators and other participants. A significant decline in market
prices of gemstones could result in reduced collateral value and losses, (i.e., a lower balance of asset-based loans outstanding for
the Company's affiliate.)

 The
gemstones and jewelry business is subject to the risk of fraud and counterfeiting.

 The
gemstones business is exposed to the risk of loss as a result of fraud in its various forms. We seek to minimize our exposure to fraud
through a number of means, including third-party authentication and verification and the establishment of procedures designed to detect
fraud. However, there can be no assurance that we will be successful in preventing or identifying fraud, or in obtaining redress in the
event such fraud is detected.

 We
may be subject to risks associated with our investments in unitranche loans

 Unitranche
loans provide leverage levels comparable to a combination of first lien and second lien or subordinated loans, and may rank junior to
other debt instruments issued by the portfolio company. Unitranche loans generally allow the borrower to make a large lump sum payment
of principal at the end of the loan term, and there is a heightened risk of loss if the borrower is unable to pay the lump sum or refinance
the amount owed at maturity. From the perspective of a lender, in addition to making a single loan, a unitranche loan may allow the lender
to choose to participate in the "first out" tranche, which will generally receive priority with respect to payments of principal,
interest and any other amounts due, or to choose to participate only in the "last out" tranche, which is generally paid only
after the first out tranche is paid. We may participate in "first out" and "last out" tranches of unitranche
loans and make single unitranche loans, and we may suffer losses on such loans if the borrower is unable to make required payments when
due.

 Covenant-Lite
Loans may expose us to different risks, including with respect to liquidity, price volatility, ability to restructure loans, credit risks
and less protective loan documentation, than is the case with loans that contain financial maintenance covenants.

 A
significant number of high yield loans in the market, may consist of covenant-lite loans, or "Covenant-Lite Loans." A significant
portion of the loans in which we may invest or get exposure to through our investments may be deemed to be Covenant-Lite Loans. Such
loans do not require the borrower to maintain debt service or other financial ratios and do not include terms which allow the lender
to monitor the performance of the borrower and declare a default if certain criteria are breached. Ownership of Covenant-Lite Loans may
expose us to different risks, including with respect to liquidity, price volatility, ability to restructure loans, credit risks and less
protective loan documentation, than is the case with loans that contain financial maintenance covenants.

 As
a BDC, our ability to invest in public companies and foreign companies is limited by the 1940 Act.

 To
maintain our tax treatment as a BDC, we are not permitted to acquire any assets other than "qualifying assets" specified
in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited
exceptions). Subject to certain exceptions for follow-on investments and distressed companies, an investment in an issuer that has outstanding
securities listed on a national securities exchange may be treated as qualifying assets only if such issuer has a market capitalization
that is less than $250 million at the time of such investment. In addition, we may invest up to 30% of our portfolio in opportunistic
investments which will be intended to diversify or complement the remainder of our portfolio and to enhance our returns to stockholders.
These investments may include private equity investments, securities of public companies that are broadly traded and securities of non-U.S.
companies. We expect that these public companies generally will have debt securities that are non-investment grade.

 Our
investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.

 Our
investment strategy contemplates that a portion of our investments may be in securities of foreign companies. Investing in foreign companies
may expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange
control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available
information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, brokers
and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing
standards and greater price volatility.

 Although
it is anticipated that most of our investments will be denominated in U.S. dollars, our investments that are denominated in a foreign
currency will be subject to the risk that the value of a particular currency may change in relation to the U.S. dollar. Among the factors
that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar
assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. We may employ
hedging techniques to minimize these risks, but we can offer no assurance that we will, in fact, hedge currency risk or, that if we do,
such strategies will be effective. As a result, a change in currency exchange rates may adversely affect our profitability.

 Hedging
transactions may expose us to additional risks.

 We
may engage in currency or interest rate hedging transactions. If we engage in hedging transactions, we may expose ourselves to risks
associated with such transactions. We may utilize instruments such as forward contracts, currency options and interest rate swaps, caps,
collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange
rates and market interest rates. Hedging against a decline in the values of our portfolio positions does not eliminate the possibility
of fluctuations in the values of such positions or prevent losses if the values of such positions decline. However, such hedging can
establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio
positions. Such hedging transaction may also limit the opportunity for gain if the values of the underlying portfolio positions should
increase. Moreover, it may not be possible to hedge against an exchange rate or interest rate fluctuation that is so generally anticipated
that we are not able to enter into a hedging transaction at an acceptable price.

 While
we may enter into transactions to seek to reduce currency exchange rate and interest rate risks, unanticipated changes in currency exchange
rates or interest rates may result in poorer overall investment performance than if we had not engaged in any such hedging transactions.
In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the
portfolio positions being hedged may vary. Moreover, for a variety of reasons, we may not seek or be able to establish a perfect correlation
between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from achieving
the intended hedge and expose us to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations
affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as
a result of factors not related to currency fluctuations.

 The
disposition of our investments may result in contingent liabilities.

 We
currently expect that a significant portion of our investments will involve lending directly to private companies. In connection with
the disposition of an investment in private securities, we may be required to make representations about the business and financial affairs
of the portfolio company typical of those made in connection with the sale of a business. We may also be required to indemnify the purchasers
of such investment to the extent that any such representations turn out to be inaccurate or with respect to certain potential liabilities.
These arrangements may result in contingent liabilities that ultimately yield funding obligations that must be satisfied through our
return of certain distributions previously made to us.

 If
we invest in the securities and obligations of distressed and bankrupt issuers, we might not receive interest or other payments.

 We
may invest in the securities and obligations of distressed and bankrupt issuers, including debt obligations that are in covenant or payment
default. Such investments generally are considered speculative. The repayment of defaulted obligations is subject to significant uncertainties.
Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer of those obligations
might not make any interest or other payments. We may not realize gains from our equity investments.

 We
are subject to risks associated with significant investments in one or more economic sectors and/or industries, including the business
services sector, which includes our investment in our affiliate's asset-based lending business.

 At
times, the Company may have a significant portion of its assets invested in securities of companies conducting business within one or
more economic sectors and/or industries, including the Services: Business sector, which includes our investment in an asset-based lending
business. Companies in the same sector or industry may be similarly affected by economic, regulatory, political or market events or conditions,
which may make the Company more vulnerable to unfavorable developments in that sector or industry than companies that invest more broadly.
Generally, the more broadly the Company invests, the more it spreads risk and potentially reduces the risks of loss and volatility.

 As
of September 30, 2023, investments in our affiliate's asset-based lending business constituted 16.2% of our total assets. See above,
under Item 1A for risk factors related to our investment in that business.

 Risks
Related to Our Operations as a BDC and a RIC

 Regulations
governing our operation as a BDC may limit our ability to, and the way in which we raise additional capital, which could have a material
adverse impact on our liquidity, financial condition and results of operations.

 Our business requires a substantial amount of
capital to operate and grow. We may acquire additional capital from the issuance of senior securities (including debt and preferred stock),
the issuance of additional shares of our common stock or from securitization transactions. However, we may not be able to raise additional
capital in the future on favorable terms or at all. Additionally, we may only issue senior securities up to the maximum amount permitted
by the 1940 Act. The 1940 Act permits us to issue senior securities only in amounts such that our asset coverage, as defined in the 1940
Act, equals at least 200% (or 150% if, pursuant to the 1940 Act, certain requirements are met) after such issuance or incurrence. If our
assets decline in value and we fail to satisfy this test, we may be required to liquidate a portion of our investments and repay a portion
of our indebtedness at a time when such sales or repayment may be disadvantageous, which could have a material adverse impact on our liquidity,
financial condition and results of operations. As of September 30, 2023, the Company's asset coverage was 270.7% after giving effect
to leverage and therefore the Company's asset coverage is above 200%, the minimum asset coverage requirement under the 1940 Act.

 Changes
in the laws or regulations governing our business, or changes in the interpretations thereof, and any failure by us to comply with these
laws or regulations, could have a material adverse effect on our business, results of operations or financial condition.

 Changes
in the laws or regulations or the interpretations of the laws and regulations that govern BDCs, RICs or non-depository commercial lenders
could significantly affect our operations and our cost of doing business. We are subject to federal, state and local laws and regulations
and are subject to judicial and administrative decisions that affect our operations, including our loan originations, maximum interest
rates, fees and other charges, disclosures to portfolio companies, the terms of secured transactions, collection and foreclosure procedures
and other trade practices. If these laws, regulations or decisions change, or if we expand our business into jurisdictions that have
adopted more stringent requirements than those in which we currently conduct business, we may have to incur significant expenses in order
to comply, or we might have to restrict our operations. In addition, if we do not comply with applicable laws, regulations and decisions,
we may lose licenses needed for the conduct of our business and may be subject to civil fines and criminal penalties.

 As
an internally managed BDC, we are subject to certain restrictions that may adversely affect our ability to offer certain compensation
structures.

 As
an internally managed BDC, our ability to offer more competitive and flexible compensation structures, such as offering both a profit-sharing
plan and an equity incentive plan, is subject to the limitations imposed by the 1940 Act, which limits our ability to attract and retain
talented investment management professionals. As such, these limitations could inhibit our ability to grow, pursue our business plan
and attract and retain professional talent, any or all of which may have a negative impact on our business, financial condition and results
of operations.

 As
an internally managed BDC, we are dependent upon our management team and investment professionals for their time availability and for
our future success, and if we are not able to hire and retain qualified personnel, or if we lose key members of our senior management
team, our ability to implement our business strategy could be significantly harmed.

 As
an internally managed BDC, our ability to achieve our investment objectives and to make distributions to our stockholders depends upon
the performance of our management team and investment professionals. We depend upon the members of our management and our investment
professionals for the identification, final selection, structuring, closing and monitoring of our investments. These employees have critical
industry experience and relationships on which we rely to implement our business plan. If we lose the services of key members of our
senior management team, we may not be able to operate the business as we expect, and our ability to compete could be harmed, which could
cause our operating results to suffer. We believe our future success will depend, in part, on our ability to identify, attract and retain
sufficient numbers of highly skilled employees. If we do not succeed in identifying, attracting and retaining such personnel, we may
not be able to operate our business as we expect. As an internally managed BDC, our compensation structure is determined and set by our
Board of Directors and its Compensation Committee. This structure currently includes salary, bonus and incentive compensation. We are
subject to limitations by the 1940 Act on our ability to employ an incentive compensation structure that directly ties performance of
our investment portfolio and results of operations to incentive compensation. Members of our senior management team may receive offers
of more flexible and attractive compensation arrangements from other companies, particularly from investment advisers to externally managed
BDCs that are not subject to the same limitations on incentive-based compensation that we are subject to as an internally managed BDC.
A departure by one or more members of our senior management team could have a negative impact on our business, financial condition and
results of operations.

 We
have internalized our operating structure, including our management and investment functions as a result, we may incur significant
costs and face significant risks associated with being self-managed, including adverse effects on our business and financial condition.

 Effective
January 1, 2021, we operate under an internalized operating structure, including our management and investment functions. There can be
no assurances that internalizing our operating structure will be beneficial to us and our stockholders, as we may incur the costs and
risks discussed below and may not be able to effectively replicate or improve upon the services previously provided to us by our former
investment adviser and administrator, MCC Advisors.

 While
we will no longer bear the costs of the various fees and expenses we previously paid to MCC Advisors under the Investment Advisory Agreement,
our direct expenses will generally include general and administrative costs, including legal, accounting, and other expenses related
to corporate governance, SEC reporting and compliance, as well as costs and expenses related to making and managing our investments.
We will also now incur the compensation and benefits costs of our officers and other employees and consultants, and, subject to adherence
to applicable law, we may issue equity or other incentive-based awards to our officers, employees and consultants, which awards may decrease
net income and funds from our operations and may dilute our stockholders. We may also be subject to potential liabilities commonly faced
by employers, such as workers disability and compensation claims, potential labor disputes and other employee-related liabilities and
grievances.

 In
addition, if the expenses we assume as a result of our internalization are higher than the expenses we would have paid and/or reimbursed
to MCC Advisors, our earnings per share may be lower as a result of our internalization than they otherwise would have been, potentially
decreasing the amount of funds available to distribute to our stockholders and the value of our shares.

 Further,
an inability to effectively manage our internalization could result in our incurring excess costs and operating inefficiencies, and may
divert our management's attention from managing our investments.

 All
of these factors could have a material adverse effect on our results of operations, financial condition, and ability to pay distributions.

 The
impact of financial reform legislation on us is uncertain.

 The
Dodd-Frank Reform Act became effective on July 21, 2010. Many provisions of the Dodd-Frank Reform Act have delayed effective dates or
have required extensive rulemaking by regulatory authorities. The upcoming presidential and congressional elections may cause uncertainty
regarding the implementation of the Dodd-Frank Reform Act and other financial reform rulemaking. Given the uncertainty associated with
the manner in which and whether the provisions of the Dodd-Frank Act will be implemented, repealed, amended, or replaced, the full impact
such requirements will have on our business, results of operations or financial condition is unclear. The changes resulting from the
Dodd-Frank Act or any changes to the regulations already implemented thereunder may require us to invest significant management attention
and resources to evaluate and make necessary changes in order to comply with new statutory and regulatory requirements. Failure to comply
with any such laws, regulations or principles, or changes thereto, may negatively impact our business, results of operations or financial
condition. While we cannot predict what effect any changes in the laws or regulations or their interpretations would have on us as a
result of recent financial reform legislation, these changes could be materially adverse to us and our stockholders.

 We
cannot predict how tax reform legislation will affect us, our investments, or our stockholders, and any such legislation could adversely
affect our business.

 Legislative
or other actions relating to taxes could have a negative effect on us, our investments, or our stockholders. The rules dealing with U.S.
federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Department
of the Treasury. We cannot predict with certainty how any changes in the tax laws might affect us, our stockholders, or our portfolio
investments. New legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation
could significantly and negatively affect our ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences
to us and our stockholders of such qualification, or could have other adverse consequences. Stockholders are urged to consult with their
tax advisors regarding tax legislative, regulatory, or administrative developments and proposals and their potential effect on an investment
in our securities.

 Legislation
that became effective in 2018 may allow the Company to incur additional leverage, which could increase the risk of investing in the Company.

 The
1940 Act generally prohibits the Company from incurring indebtedness unless immediately after such borrowing we have an asset coverage
for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). However, in March 2018,
the SBCA was signed into law, which included various changes to regulations under the federal securities laws that impact BDCs. The SBCA
included changes to the 1940 Act to allow BDCs to decrease their asset coverage requirement from 200% to 150%, if certain requirements
are met. Under the 1940 Act, the Company is allowed to increase its leverage capacity if our stockholders representing at least a majority
of the votes cast, when a quorum is present, approve a proposal to do so. If we receive stockholder approval, we would be allowed to
increase our leverage capacity on the first day after such approval. Alternatively, the 1940 Acts allows the majority of our independent
directors to approve an increase in our leverage capacity, and such approval would become effective after the one-year anniversary of
such proposal. In either case, we would be required to make certain disclosures on our website and in SEC filings regarding, among other
things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage.

 Leverage
is generally considered a speculative investment technique and increases the risk of investing in our securities. Leverage magnifies
the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our
investments, our stockholders will experience increased risks of investing in our securities. If the value of our assets increases, then
leveraging would cause the NAV attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely,
if the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged
our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment
income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline
more sharply than it would have had we not borrowed. Such a decline could negatively affect the Company's ability to pay common
stock dividends, scheduled debt payments or other payments related to our securities.

 If
we do not invest a sufficient portion of our assets in qualifying assets, we could fail to qualify as a BDC, which would have a material
adverse effect on our business, financial condition and results of operations.

 As
a BDC, we may not acquire any assets other than "qualifying assets" unless, at the time of and after giving effect to such
acquisition, at least 70% of our total assets are qualifying assets. See "Regulation". Our intent is that a substantial portion
of the investments that we acquire will constitute qualifying assets. However, we may be precluded from investing in what we believe
are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. If we do not invest a sufficient
portion of our assets in qualifying assets, we could be found to be in violation of the 1940 Act provisions applicable to BDCs and possibly
lose our tax treatment as a BDC, which would have a material adverse effect on our business, financial condition and results of operations.

 We
would become subject to corporate-level U.S. federal income tax if we are unable to maintain our qualification as a RIC under Subchapter
M of the Code or satisfy RIC distribution requirements.

 We
have elected, and intend to qualify annually, to be treated as a RIC under Subchapter M of the Code. No assurance can be given that we
will be able to maintain our qualification as a RIC. To maintain RIC tax treatment under the Code, we must meet the following annual
distribution, income source and asset diversification requirements.

 The annual distribution
 requirement for a RIC is satisfied if we timely distribute to our stockholders on an annual basis at least 90% of our net ordinary
 income and realized short-term capital gains in excess of realized net long-term capital losses. Depending on the level of taxable
 income earned in a tax year, we may choose to carry forward taxable income in excess of current year distributions into the next
 year and pay a 4% U.S. federal excise tax on such income. Any such carryover taxable income must be distributed through a dividend
 declared prior to filing the final tax return related to the year that generated such taxable income.

 The source of income requirement
 is satisfied if we obtain at least 90% of our gross income for each taxable year from dividends, interest, payments with respect
 to certain securities loans, gains from the sale or other disposition of stock or other securities or foreign currencies or other
 income derived with respect to our business of investing in such stock, securities or currencies and net income derived from an interest
 in a "qualified publicly traded partnership" (as defined in the Code).

 The asset diversification
 requirement is satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. To
 satisfy this requirement, at least 50% of the value of our assets must consist of cash, cash equivalents, U.S Government securities,
 securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value
 of our assets or more than 10% of the outstanding voting securities of the issuer (which for these purposes includes the equity securities
 of a "qualified publicly traded partnership"). In addition, no more than 25% of the value of our assets can be invested
 in the securities, other than U.S Government securities or securities of other RICs, (1) of one issuer (2) of two or more issuers
 that are controlled, as determined under applicable tax rules, by us and that are engaged in the same or similar or related trades
 or businesses or (3) of one or more "qualified publicly traded partnerships".

 If
we fail to qualify for RIC tax treatment for any reason or are subject to corporate-level U.S. federal income tax, the resulting corporate-level
taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions.
In addition, to the extent we had unrealized gains, we would have to establish deferred tax liabilities for taxes, which would reduce
our NAV accordingly. In addition, our stockholders would lose the tax credit realized if we, as a RIC, decide to retain the net realized
capital gain and make deemed distributions of net realized capital gains, and pay taxes on behalf of our stockholders at the end of the
tax year. The loss of this pass-through tax treatment could have a material adverse effect on the total return of an investment in our
common stock.

 Risks
Relating to an Investment in Our Securities

 Investing
in our securities may involve an above average degree of risk.

 The
investments we make in accordance with our investment objective may result in a higher amount of risk than alternative investment options
and a higher risk of volatility or loss of principal. Our investments in portfolio companies involve higher levels of risk and, therefore,
an investment in our securities may not be suitable for someone with lower risk tolerance.

of closed-end investment companies, including business development companies, may, at times, trade at a discount to their NAV and the
Company's shares have not traded at or above NAV since the first quarter of 2015.

of closed-end investment companies, including business development companies, may, at times, trade at a discount from NAV. This characteristic
of closed-end investment companies and business development companies is separate and distinct from the risk that our NAV per share may
decline. Our common stock has not traded at or above NAV since the first quarter of 2015, and we cannot predict whether our common stock
will trade at, above or below NAV in the future.

 The
market price of our common stock fluctuates.

 The
market price and liquidity of the market for shares of our common stock fluctuates and may be significantly affected by numerous factors,
some of which are beyond our control and may not be directly related to our operating performance.

 These factors
include:

 significant volatility
 in the market price and trading volume of securities of business development companies or other companies in our sector, which are
 not necessarily related to the operating performance of the companies;

 changes in regulatory policies,
 accounting pronouncements or tax guidelines, particularly with respect to BDCs or RICs;

 loss of our qualification
 as a RIC or BDC;

 changes in earnings or variations in operating results;

 changes in the value of our portfolio of investments;

 changes in accounting guidelines governing valuation
 of our investments;

 any shortfall in revenue or net income or any increase
 in losses from levels expected by investors or securities analysts;

 departure of our key personnel;

 operating performance of
 companies comparable to us;

 general economic trends
 and other external factors; and

 loss of a major funding
 source.

provisions of the Delaware General Corporation Law and our certificate of incorporation and bylaws could deter takeover attempts and
have an adverse impact on the price of our common stock.

 The
Delaware General Corporation Law, our certificate of incorporation and our bylaws contain provisions that may have the effect of discouraging
a third party from making an acquisition proposal for us. These anti-takeover provisions may inhibit a change in control in circumstances
that could give the holders of our common stock the opportunity to realize a premium over the market price of our common stock.

 The
NAV per share of our common stock may be diluted if we sell shares of our common stock in one or more offerings at prices below the then
current NAV per share of our common stock or securities to subscribe for or convertible into shares of our common stock.

 While
we currently do not have the requisite stockholder approval to sell shares of our common stock at a price or prices below our then current
NAV per share, we may seek such approval in the future. In addition, at our 2012 Annual Meeting of Stockholders, we received approval
from our stockholders to authorize the Company, with the approval of our board of directors, to issue securities to, subscribe to, convert
to, or purchase shares of the Company's common stock in one or more offerings, subject to certain conditions as set forth in the
proxy statement. Such authorization has no expiration.

 Any
decision to sell shares of our common stock below its then current NAV per share or issue securities to subscribe for or convertible
into shares of our common stock would be subject to the determination by our board of directors that such issuance is in our and our
stockholders' best interests.

 If
we were to sell shares of our common stock below its then current NAV per share, such sales would result in an immediate dilution to
the NAV per share of our common stock. This dilution would occur as a result of the sale of shares at a price below the then current
NAV per share of our common stock and a proportionately greater decrease in the stockholders' interest in our earnings and assets
and their voting interest in us than the increase in our assets resulting from such issuance. Because the number of shares of common
stock that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted.

 If
we issue warrants or securities to subscribe for or convertible into shares of our common stock, subject to certain limitations, the
exercise or conversion price per share could be less than NAV per share at the time of exercise or conversion (including through the
operation of anti-dilution protections). Because we would incur expenses in connection with any issuance of such securities, such issuance
could result in a dilution of the NAV per share at the time of exercise or conversion. This dilution would include reduction in NAV per
share as a result of the proportionately greater decrease in the stockholders' interest in our earnings and assets and their voting
interest than the increase in our assets resulting from such issuance.

 Further,
if our current stockholders do not purchase any shares to maintain their percentage interest, regardless of whether such offering is
above or below the then current NAV per share, their voting power will be diluted. For example, if we sell an additional 10% of our shares
of common stock at a 5% discount from NAV, a stockholder who does not participate in that offering for its proportionate interest will
suffer NAV dilution of up to 0.5% or $5 per $1,000 of NAV.

 The
terms of the Credit Facility place restrictions on our and/or our subsidiaries activities.

 The
terms of the Credit Facility place restrictions on our and/or our subsidiaries' ability to, among other things, issue securities
or otherwise incur additional indebtedness or other obligations, and in certain cases we may need the approval of WoodForest, as the
Administrative Agent, in order to incur further indebtedness. In addition, the Credit Facility contains customary events of default for
credit facilities of this type, including (without limitation): nonpayment of principal, interest, fees or other amounts after a stated
grace period; inaccuracy of material representations and warranties; change of control; violations of covenants, subject in certain cases
to stated cure periods; and certain bankruptcies and liquidations. If an event of default occurs and is continuing, the Company may be
required to repay all amounts outstanding under the Credit Facility, which would adversely affect our liquidity position and, in turn,
could force us to dispose of investments at inopportune times at reduced prices. Repayment could also adversely affect our ability to
implement our investment strategy and achieve our investment objectives.

 If
we issue preferred stock, the NAV and market value of our common stock may become more volatile.

 If
we issue preferred stock, we cannot assure you that such issuance would result in a higher yield or return to the holders of our common
stock. The issuance of preferred stock would likely cause the NAV and market value of our common stock to become more volatile. If the
dividend rate on the preferred stock were to approach the net rate of return on our investment portfolio, the benefit of leverage to
the holders of our common stock would be reduced. If the dividend rate on the preferred stock were to exceed the net rate of return on
our portfolio, the leverage would result in a lower rate of return to the holders of our common stock than if we had not issued preferred
stock. Any decline in the NAV of our investments would be borne entirely by the holders of our common stock. Therefore, if the market
value of our portfolio were to decline, the leverage would result in a greater decrease in NAV to the holders of our common stock than
if we were not leveraged through the issuance of preferred stock. This greater NAV decrease would also tend to cause a greater decline
in the market price for our common stock. We might be in danger of failing to maintain the required asset coverage of the preferred stock
or of losing our ratings on the preferred stock or, in an extreme case, our current investment income might not be sufficient to meet
the dividend requirements on the preferred stock. In order to counteract such an event, we might need to liquidate investments in order
to fund a redemption of some or all of the preferred stock. In addition, we would pay (and the holders of our common stock would bear)
all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock, including higher advisory fees if our
total return exceeds the dividend rate on the preferred stock. Holders of preferred stock may have different interests than holders of
our common stock and may at times have disproportionate influence over our affairs.

 Holders
of any preferred stock we might issue would have the right to elect members of the board of directors and class voting rights on certain
matters.

 Holders
of any preferred stock we might issue, voting separately as a single class, would have the right to elect two members of the board of
directors at all times and in the event dividends become two full years in arrears, would have the right to elect a majority of our directors
until such arrearage is completely eliminated. In addition, preferred stockholders would have class voting rights on certain matters,
including changes in fundamental investment restrictions and conversion to open-end status, and accordingly would be able to veto any
such changes. Restrictions imposed on the declarations and payment of dividends or other distributions to the holders of our common stock
and preferred stock, both by the 1940 Act and by requirements imposed by rating agencies or the terms of any credit facility to which
the Company is a party, might impair our ability to maintain our qualification as a RIC for U.S. federal income tax purposes. While we
would intend to redeem our preferred stock to the extent necessary to enable us to distribute our income as required to maintain our
qualification as a RIC, there can be no assurance that such actions could be effected in time to meet the tax requirements.

 Our
business and operations could be negatively affected if we become subject to any securities class actions and derivative lawsuits, which
could cause us to incur significant expense, hinder execution of investment strategy and impact our stock price.

 In
the past, following periods of volatility in the market price of a company's securities, securities class-action litigation has
often been brought against that company. Stockholder activism, which could take many forms or arise in a variety of situations, has been
increasing in the BDC space recently. Securities litigation and stockholder activism, including potential proxy contests, could result
in substantial costs and divert management's and our board of directors' attention and resources from our business. Additionally,
such securities litigation and stockholder activism could give rise to perceived uncertainties as to our future, adversely affect our
relationships with service providers and make it more difficult to attract and retain qualified personnel. Also, we may be required to
incur significant legal fees and other expenses related to any securities litigation and activist stockholder matters. Further, our stock
price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any securities
litigation and stockholder activism.

 Item
1B. Unresolved Staff Comments

 None.

 Item
2. Properties

 Properties

 We
do not own any real estate or other physical properties materially important to our operation. We have entered into a 5-year operating
lease for our headquarters at 445 Park Avenue, 10th Floor, New York, NY 10022.

 Item
3. Legal Proceedings

 From
time to time, we are involved in various legal proceedings, lawsuits and claims incidental to the conduct of our business. Our businesses
are also subject to extensive regulation, which may result in regulatory proceedings against us. We are not currently party to any material
legal proceedings.

 Item
4. Mine Safety Disclosures

 None.

 PART
II

 Item
5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Since
January 4, 2021, the common stock trades on the NASDAQ Global Market under the trading symbol "PFX."

 As
of September 30, 2023, we had 11 stockholders of record of our common stock, which did not include stockholders for whom shares are held
in "nominee" or "street name."

 The
following table sets forth, for the periods indicated, the range of high and low closing prices of our common stock and the sales price
as a percentage of the net asset value per share of our common stock.

 Closing Market Price

 Premium/
 (Discount) of
 High Market
 Price to

 Premium/
 (Discount) of
 Low Market
 Price to

 NAV (1)

 High

 Low

 NAV (2)

 NAV (2)

 Fiscal year ending September 30, 2023

 Fourth Quarter

 $
 70.75

 $
 40.00

 $
 35.71

 (43.46
)%

 (49.53
)%

 Third Quarter

 67.01

 39.00

 32.00

 (41.80
)%

 (52.25
)%

 Second Quarter

 62.70

 39.14

 32.49

 (37.58
)%

 (48.18
)%

 First Quarter

 59.38

 36.49

 31.05

 (38.55
)%

 (47.71
)%

 Fiscal year ending September 30, 2022

 Fourth Quarter

 $
 57.49

 $
 39.37

 $
 32.61

 (31.52
)%

 (43.28
)%

 Third Quarter

 58.74

 43.00

 35.75

 (26.80
)%

 (39.14
)%

 Second Quarter

 62.94

 42.00

 36.10

 (33.27
)%

 (42.64
)%

 First Quarter

 58.99

 43.50

 40.50

 (26.26
)%

 (31.34
)%

 Fiscal year ending September 30, 2021

 Fourth Quarter

 $
 57.08

 $
 43.35

 $
 40.10

 (24.05
)%

 (29.75
)%

 Third Quarter

 58.49

 42.76

 32.80

 (26.89
)%

 (43.92
)%

 Second Quarter

 55.91

 33.99

 27.70

 (39.21
)%

 (50.46
)%

 First Quarter

 52.94

 29.88

 18.14

 (43.56
)%

 (65.73
)%

 (1)

 Net asset value per share
 is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per share on the date
 of the high and low market prices. The net asset value per share shown is based on outstanding shares at the end of the period.

 (2)

 Calculated as of the respective
 high or low closing market price less quarter end net asset value divided by the quarter end net asset value.

 For
all periods presented in the table above, there was no return of capital included in any distribution.

of business development companies may trade at a market price that is less than the value of the net assets attributable to those shares.
The possibility that our shares of common stock will trade at a discount or premium to net asset value is separate and distinct from
the risk that our net asset value will decrease.

 The last reported closing price of our common stock on December 21,
2023 was $38.25 per share, approximately 54.06% of the Company's then-current NAV. As of December 21, 2023 we had 11 stockholders
of record of our common stock, which did not include stockholders for whom shares are held in "nominee" or "street name."

 Sales
of Unregistered Securities

 We did not
sell any securities within the past three years that were not registered under the Securities Act of 1933.

 Stock
Performance Graph

 This
graph compares the stockholder return on our common stock from September 30, 2018 to September 30, 2023 with that of the Standard &
Poor's 500 Stock Index and the Russell 2000 Financial Services Index. This graph assumes that on September 30, 2018, $100 was invested
in our common stock, the S&P 500 Index, and the Russell 2000 Financial Services Index. The graph also assumes the reinvestment of
all cash dividends prior to any tax effect. Investment performance shown for periods prior to January 1, 2021 was achieved pursuant to
our former externally-managed structure.

 The
graph and other information furnished under this Part II Item 5 of this annual report on Form 10-K shall not be deemed to be "soliciting
material" or to be "filed" with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of
the Exchange Act. The stock price performance included in the below graph is not necessarily indicative of future stock performance.

 Issuer
Purchases of Securities

 Information
relating to the Company's purchases of its common stock during the year ended September 30, 2023 is as follows:

 Month
 Ended

 Repurchased

 Repurchase

 Price Per
 Share

 Aggregate

 Consideration for
 Repurchased Shares

 October 2022

 $35.20 -
 $36.14

 14,434

 November 2022

 1,103

 $34.53 -
 $35.28

 38,790

 December 2022

 1,501

 $33.26 -
 $34.84

 51,295

 January 2023

 2,052

 $32.78 -
 $34.84

 68,665

 February 2023

 3,131

 $33.06 -
 $39.03

 115,430

 March 2023

 2,003

 $37.02 -
 $38.89

 76,214

 April 2023

 $35.79 -
 $37.03

 23,671

 May 2023

 $36.53 -
 $36.53

 3,658

 June 2023

 2,300

 $33.63 -
 $38.76

 85,556

 August 2023

 14,751

 $36.98 - $39.41

 575,728

 September 2023

 $38.11
 - $38.11

 4,772

 Total

 28,416

 1,058,213

 Item
6. [Reserved]

 Item
7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 The
following discussion and analysis should be read in conjunction with our financial statements and related notes and other financial information
appearing elsewhere in this annual report on Form 10-K.

 Except
as otherwise specified, references to "we," "us," "our," or the "Company," refer to PhenixFIN
Corporation.

 Forward-Looking
Statements

 Some
of the statements in this annual report on Form 10-K constitute forward-looking statements, which relate to future events or our performance
or financial condition. The forward-looking statements contained in this annual report on Form 10-K involve risks and uncertainties,
including statements as to:

 the introduction, withdrawal,
 success and timing of business initiatives and strategies;

 changes in political, economic
 or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, which could result
 in changes in the value of our assets;

 the impact of increased
 competition;

 the impact of future acquisitions
 and divestitures;

 our business prospects
 and the prospects of our portfolio companies;

 the impact of legislative
 and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us;

 our contractual arrangements
 and relationships with third parties;

 any future financings by
 us;

 fluctuations in foreign
 currency exchange rates;

 the impact of changes to
 tax legislation and, generally, our tax position;

 our ability to locate suitable
 investments for us and to monitor and administer our investments;

 our ability to attract
 and retain highly talented professionals;

 market conditions and our
 ability to access alternative debt markets and additional debt and equity capital;

 the unfavorable resolution
 of legal proceedings;

 uncertainties associated
 with the effect of pandemics and other future market disruptions on our business prospects and the operational and financial performance
 of our portfolio companies, including our and their ability to achieve their respective objectives; and the effect of disruptions
 on our ability to continue to effectively manage our business; and

 risks and uncertainties
 relating to the possibility that the Company may explore strategic alternatives, including, but are not limited to: the timing, benefits
 and outcome of any exploration of strategic alternatives by the Company; potential disruptions in the Company's business and
 stock price as a result of our exploration of any strategic alternatives; the ability to realize anticipated efficiencies, or strategic
 or financial benefits; potential transaction costs and risks; and the risk that any exploration of strategic alternatives may have
 an adverse effect on our existing business arrangements or relationships, including our ability to retain or hire key personnel.
 There is no assurance that any exploration of strategic alternatives will result in a transaction or other strategic change or outcome.

 Such
forward-looking statements may include statements preceded by, followed by or that otherwise include the words "trend," "opportunity,"
"pipeline," "believe," "comfortable," "expect," "anticipate," "current,"
"intention," "estimate," "position," "assume," "potential," "outlook,"
"continue," "remain," "maintain," "sustain," "seek," "achieve,"
and similar expressions, or future or conditional verbs such as "will," "would," "should," "could,"
"may," or similar expressions. The forward looking statements contained in this annual report involve risks and uncertainties.
Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including
the factors set forth as "Risk Factors" and elsewhere in this annual report on Form 10-K.

 We
have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume
no obligation to update any such forward-looking statements. Actual results could differ materially from those anticipated in our forward-looking
statements, and future results could differ materially from historical performance. Although we undertake no obligation to revise or
update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult
any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the
Securities and Exchange Commission ("SEC"), including annual reports on Form 10-K, registration statements on Form N-2, quarterly
reports on Form 10-Q and current reports on Form 8-K.

 Overview

 We
are an internally-managed non-diversified closed-end management investment company that has elected to be regulated as a BDC under the
1940 Act. In addition, we have elected, and intend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under
Subchapter M of the Code. Through December 31, 2020, we were an externally managed company. Since January 1, 2021, we have operated under
such internalized management structure.

 We
commenced operations and completed our initial public offering on January 20, 2011. Under our internalized management structure, our
activities are managed by our senior professionals and are supervised by our board of directors, of which a majority of the members are
independent of us.

 The
Company's investment objective is to generate current income and capital appreciation. The management team seeks to achieve this
objective primarily through making loans, private equity or other investments in privately-held companies. The Company may also make
debt, equity or other investments in publicly-traded companies. These investments may also include investments in other BDCs, closed-end
funds or REITs. We may also pursue other strategic opportunities and invest in other assets or operate other businesses to achieve our
investment objective, such as operating and managing an asset-based lending business. The portfolio generally consists of senior secured
first lien term loans, senior secured second lien term loans, senior secured bonds, preferred equity and common equity. Occasionally,
we will receive warrants or other equity participation features which we believe will have the potential to increase total investment
returns. Our loan and other debt investments are primarily rated below investment grade or are unrated. Investments in below investment
grade securities are considered predominantly speculative with respect to the issuer's capacity to pay interest and repay principal
when due.

 As
a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our
total assets in "qualifying assets," including securities of private or thinly traded public U.S. companies, cash, cash equivalents,
U.S. government securities and high-quality debt investments that mature in one year or less. In addition, we are only allowed to borrow
money such that our asset coverage, as defined in the 1940 Act, equals at least 200% (or 150% if, pursuant to the 1940 Act, certain requirements
are met) after such borrowing, with certain limited exceptions. To maintain our RIC tax treatment, we must meet specified source-of-income
and asset diversification requirements. In addition, to maintain our RIC tax treatment, we must timely distribute at least 90% of our
net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, for the taxable
year.

 Revenues

 We generate revenue in the form of interest income on the debt that
we hold and capital gains, if any, on warrants or other equity interests that we may acquire in portfolio companies. We invest our assets
primarily in privately held companies with enterprise or asset values between $25 million and $250 million and generally focus on investment
sizes of $10 million to $50 million. We believe that pursuing opportunities of this size offers several benefits including reduced competition,
a larger investment opportunity set and the ability to minimize the impact of financial intermediaries. We expect our debt investments
to bear interest at either a fixed or floating rate. Interest on debt will be payable generally either monthly or quarterly. In some cases
our debt investments may provide for a portion of the interest to be PIK. To the extent interest is PIK, it will be payable through the
increase of the principal amount of the obligation by the amount of interest due on the then-outstanding aggregate principal amount of
such obligation. The principal amount of the debt and any accrued but unpaid interest will generally become due at the maturity date.
In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, fees for providing managerial
assistance or investment management services and possibly consulting fees. Any such fees will be recognized as earned.

 Expenses

 In
periods prior to December 31, 2020, our primary operating expenses included management and incentive fees pursuant to the investment
management agreement we had with MCC Advisors and overhead expenses, including our allocable portion of our administrator's overhead
under the administration agreement, which were paid during the quarter ended March 31, 2021. Our management and incentive fees compensated
MCC Advisors for its work in identifying, evaluating, negotiating, closing and monitoring our investments. On November 18, 2020, the
board of directors adopted an internally managed structure, effective January 1, 2021, under which we bear all costs and expenses of
our operations and transactions, including those relating to:

 our organization and continued
 corporate existence;

 calculating our net asset
 value ("NAV") (including the cost and expenses of any independent valuation firms);

 expenses, including travel
 expense, incurred by our professionals or payable to third parties performing due diligence on prospective portfolio companies, monitoring
 our investments and, if necessary, enforcing our rights;

 interest payable on debt
 incurred to finance our investments;

 the costs of all offerings
 of common shares and other securities;

 operating costs associated
 with employing investment professionals and other staff;

 distributions on our shares;

 administration fees payable
 under our administration agreement;

 custodial fees related
 to our assets

 amounts payable to third
 parties relating to, or associated with, making investments;

 transfer agent and custodial
 fees;

 all registration and listing
 fees;

 U.S. federal, state and
 local taxes;

 independent directors'
 fees and expenses;

 costs of preparing and
 filing reports or other documents with the SEC or other regulators;

 the costs of any reports,
 proxy statements or other notices to our stockholders, including printing costs;

 our fidelity bond;

 the operating lease of
 our office space;

 directors and officers/errors
 and omissions liability insurance, and any other insurance premiums;

 indemnification payments;
 and

 direct costs and expenses
 of administration, including audit and legal costs.

 Expense
Support Agreement

 On
June 12, 2020, the Company entered into an expense support agreement (the "Expense Support Agreement") with MCC Advisors
and Medley LLC, pursuant to which MCC Advisors and Medley LLC agreed (jointly and severally) to cap the management fee and all of the
Company's other operating expenses (except interest expenses, certain extraordinary strategic transaction expenses, and other expenses
approved by the Special Committee of the Board), at $667,000 per month (the "Cap"). Under the Expense Support Agreement,
the Cap became effective on June 1, 2020 and was to expire on September 30, 2020. On September 29, 2020, the board of directors, including
all of the independent directors, extended the term of the Expense Support Agreement through the end of quarter ending December 31, 2020.
The Expense Support Agreement expired by its terms at the close of business on December 31, 2020, in connection with the adoption of
the internalized management structure by the board of directors.

 For
the three months ended December 31, 2020, the total management fee and the other operating expenses subject to the Cap (as described
above) were $2.5 million, which resulted in $0.3 million of expense support incurred during the quarter ended December 31, 2020 and due
from MCC Advisors. The $0.3 million of expense support due was paid during the quarter ended March 31, 2021. See "Note 6"
for more information.

 Long-Term
Cash Incentive Plan

 On
May 9, 2022, the board of directors of the Company adopted the PhenixFIN 2022 Long-Term Cash Incentive Plan (the "CIP") pursuant
to the recommendation by the Compensation Committee of the board of directors. The CIP provides for performance-based cash awards to
key employees of the Company, as approved by the Compensation Committee, based on the achievement of pre-established financial goals
for the approved performance period. The performance goals may be expressed as one or a combination of net asset value of the Company,
net asset value per share of the Company's common stock, changes in the market price of shares of the Company's common stock,
individual performance metrics and/or such other goals and objectives the Committee considers relevant in connection with accomplishing
the purposes of the CIP.

 In
connection with the approval of the CIP, the Compensation Committee in April 2022 approved awards for the three-year performance period
commencing on January 1, 2022 and ending on December 31, 2024 (the "2022 LTIP Plan"). Each participant is eligible to receive
an amount of cash equal to 0%-200% of the target award set forth in the table below ("Target Performance Award"), based on
the achievement of net asset value ("NAV") and NAV per share goals (weighted at 30% and 70%, respectively) as of the end
of the performance period (the "Performance Goals"). Performance is evaluated separately for each Performance Goal. No payment
is made with respect to a Performance Goal if a threshold level of performance is not achieved. Each Performance Goal is subject to (i)
a threshold level of performance at which a percentage of the Target Performance Award attributable to that Performance Goal may be paid
and below which no payment is made pursuant to an award, (ii) a target level of performance at which 100% of the Target Performance Award
attributable to that Performance Goal may be paid and (iii) a maximum level of performance, at which 200% of the Target Performance Award
attributable to that Performance Goal may be paid, in each case subject to such other terms and conditions of an award. Between threshold,
target and maximum performance levels for each Performance Goal, the portion of that award attributed to the Performance Goals shall
be interpolated in a linear progression.

 In
December 2022, pursuant to the CIP, the Compensation Committee approved awards for Mr. Lorber and Ms. McMillan for the three-year performance
period commencing on January 1, 2023 and ending on December 31, 2025 (the "2023 LTIP Plan"). Each participant is eligible
to receive an amount of cash equal to a percentage of the target award amount set forth above based on the factors described above. The
Compensation Committee, in approving the awards, evaluated each Performance Goal separately.

 The
Target Performance Award for each executive officer for both the 2022 LTIP plan and 2023 LTIP plan is set forth in the table below:

 Name
 and Title

 Dollar Value

 of Target
 Award

 David Lorber, Chairman of the Board
 and Chief Executive Officer

 $
 890,000

 Ellida McMillan, Chief Financial Officer

 380,000

the year ended September 30, 2023, the Company recorded an accrual of $317,000, for these awards. During the years ended September 30,
2022 and 2021, the Company did not record an accrual.

and Investment Activity

 As
of September 30, 2023 and 2022, our portfolio had a fair market value of approximately $226.5 million and $193.0 million, respectively.

 During the year ended September 30, 2023, we received proceeds from sale
and settlements of investments of $66.6 million, including principal and dividend proceeds, realized net losses on investments of $11.5
million, and invested $76.5 million.

the year ended September 30, 2022, we received proceeds from sale and settlements of investments of $123.8 million, including principal
and dividend proceeds, realized net gains on investments of $5.2 million, and invested $173.3 million.

 The
following table summarizes the amortized cost and the fair value of our average portfolio company:

 Cost

 Fair
 Value

 Cost

 Fair
 Value

 Average portfolio company

 $
 6,310

 $
 5,392

 $
 3,560

 $
 2,608

 Largest portfolio company

 38,871

 38,871

 47,136

 47,136

 The
following table summarizes the amortized cost and the fair value of investments as of September 30, 2023 (dollars in thousands):

 Amortized Cost

 $
 139,103

 52.5
 %

 $
 103,004

 45.6
 %

 9,512

 3.6

 8,922

 3.9

 Fund Investment

 1,027

 0.4

 0.3

 115,369

 43.5

 113,743

 50.2

 Total Investments

 $
 265,011

 100.0
 %

 $

 100.0
 %

 The
following table summarizes the amortized cost and the fair value of investments as of September 30, 2022 (dollars in thousands):

 Cost

 Fair
 Value

 Senior Secured First Lien Term
 Loans

 $
 128,482

 48.7
 %

 $
 88,248

 45.6
 %

 Senior Secured Second Lien Term Loans

 2,603

 1.0

 2,607

 1.4

 2,252

 0.9

 1,659

 0.9

 Unsecured Debt

 0.1

 -

 -

 129,929

 49.3

 100,443

 52.1

 Total

 $
 263,448

 100.0
 %

 $

 100.0
 %

 As of September 30, 2023, our income-bearing investment portfolio based
upon cost represented 88.2% of our total portfolio of which 59.5% bore interest based on floating rates, such as LIBOR or SOFR, 13.9%
bore interest at fixed rates, and 26.6% are income-producing equity investments. As of September 30, 2022, our income-bearing investment
portfolio based upon cost represented 62.0% of our total portfolio of which 81.9% bore interest based on floating rates, such as LIBOR
or SOFR, while 18.1% bore interest at fixed rates. As of September 30, 2023, the Company had a weighted average yield of 13.3% on debt
and other income producing investments. As of September 30, 2022, the Company had a weighted average yield of 10.85% on debt and other
income producing investments. The weighted average yield of our total portfolio does not represent the total return to our stockholders.

 We
rate the risk profile of each of our investments based on the following categories:

 Credit

 Rating

 Definition

 above expectations.

 within expectations, with risks that are neutral or favorable compared to risks at the time of origination. All new loans are rated
 '2'.

 below expectations and that require closer monitoring, but where no loss of interest, dividend or principal is expected. Companies
 rated '3' may be out of compliance with financial covenants, however, loan payments are generally not past due.

 below expectations and for which risk has increased materially since origination. Some loss of interest or dividend is expected but
 no loss of principal. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past
 due (but generally not more than 180 days past due).

 substantially below expectations and whose risks have increased substantially since origination. Most or all of the debt covenants
 are out of compliance and payments are substantially delinquent. Some loss of principal is expected.

 The
following table shows the distribution of our investments on the 1 to 5 investment performance rating scale at fair value as of September
30, 2023 and 2022 (dollars in thousands):

 Fair
 Value

 Fair
 Value

 $
 -

 0.0
 %

 $
 -

 0.0
 %

 197,951

 87.4
 %

 159,279

 82.6
 %

 15,651

 6.9
 %

 22,183

 11.5
 %

 6,362

 2.8
 %

 6,250

 3.2
 %

 6,497

 2.9
 %

 5,245

 2.7
 %

 Total

 $

 100.0
 %

 $

 100.0
 %

 Results
of Operations

results for the years ended September 30, 2023, 2022 and 2021 are as follows (dollars in thousands):

 For the Years Ended September 30,

 2023

 2022

 2021

 Total investment income

 $
 19,878

 $
 15,544

 $
 32,307

 Less: Net expenses

 13,622

 12,113

 13,784

 Net investment income/(loss)

 6,256

 3,431

 18,523

 Net realized gains (losses) on investments

 (11,532
)

 5,221

 (42,486
)

 Net change in unrealized gains (losses) on investments

 32,194

 (14,463
)

 25,363

 Loss on extinguishment of debt

 -

 (296
)

 (122
)

 Net increase (decrease) in net assets resulting from operations

 $
 26,918

 $
 (6,107
)

 $
 1,278

 For the year ended September 30, 2023, investment income totaled $20.1
million, of which $12.1 million was attributable to portfolio interest, approximately $6.9 million was attributable to dividend income,
$0.7 million was attributable to fee and other income, and $0.4 million was attributable to interest on cash and cash equivalents. Dividend
income was received from 11 investments during the year ended September 30, 2023.

 For
the year ended September 30, 2022, investment income totaled $15.5 million, of which $9.3 million was attributable to portfolio interest,
approximately $5.5 million was attributable to dividend income, and $0.7 million was attributable to fee and other income. Dividend income
was received from 12 investments during the year ended September 30, 2022.

 For
the year ended September 30, 2021, investment income totaled $32.3 million, of which $29.6 million was attributable to portfolio interest
and dividend income, $2.6 million was attributable to fee income, and $0.1 million was attributable to other income.

Expenses

expenses for the years ended September 30, 2023, 2022 and 2021 are as follows (dollars in thousands):

 For

 2023

 2022

 2021

 Base management fees

 $
 -

 $
 -

 $
 1,146

 Interest and financing expenses

 5,532

 5,113

 5,800

 Professional fees, net

 1,405

 1,341

 Salaries and benefits

 4,187

 2,952

 1,993

 General and administrative

 1,103

 1,012

 Directors fees

 1,040

 Insurance expenses

 1,620

 Administrator expenses

 Total Expenses

 $
 13,622

 $
 12,113

 $
 13,784

 For
the year ended September 30, 2023, total operating expenses increased by $1.5 million, or 12.5%, compared to the year ended September
30, 2022.

 For
the year ended September 30, 2022, total operating expenses decreased by $1.7 million, or 12.1%, compared to the year ended September
30, 2021.

expenses are before management and incentive fee waivers for the first three months of 2021.

 Effective
beginning January 1, 2021, the Company no longer incurred any management or incentive fees, nor was it subject to expense support arrangements
due to its transition to an internal management structure.

and Financing Expenses

 Interest and financing expenses for the year ended September 30, 2023
increased by $0.4 million, or 8.2%, compared to the year ended September 30, 2022. The increase in interest and financing expenses was
primarily due to interest expense on the Credit Facility which was issued on December 15, 2022, partially offset by a decrease due to
the full repayment of the 2023 Notes on January 17, 2023.

and financing expenses for the year ended September 30, 2022 decreased by $0.7 million, or 11.8%, compared to the year ended September
30, 2021. The decrease in interest and financing expenses was primarily due to the full repayment of the 2021 Notes on November 20, 2020
and the partial repayment of the 2023 Notes on December 16, 2021, partially offset by an increase due to the issuance of the 2028 Notes
which became effective on November 16, 2021.

 Base
Management Fees and Incentive Fees

 No
base management fees were paid for the year ended September 30, 2023 and 2022 as, since January 1, 2021, the Company ceased incurring
management fees under its current internalized structure.

 Base
management fees for the year ended September 30, 2021 decreased by $5.2 million, or 82.0%, compared to the year ended September 30, 2020
as, since January 1, 2021, the Company no longer incurs management fees under its current internalized structure.

 No
incentive fees were paid for the year ended September 30, 2023, 2022 or 2021. Since January 1, 2021, the Company no longer incurs incentive
fees under its current internalized structure.

 Professional
Fees and General and Administrative Expenses

 Professional fees and general and administrative expenses for the year
ended September 30, 2023 decreased by $0.1 million, or 2.3%, compared to the year ended September 30, 2022. This resulted primarily from
a decrease in miscellaneous expenses.

 Professional
fees and general and administrative expenses for the year ended September 30, 2022 increased by $0.9 million, or 55.5%, compared to the
year ended September 30, 2021. This resulted primarily from recording insurance proceeds received in 2021 as an offset to legal fees
which are a component of professional fees. During the year ended September 30, 2022, the Company did not receive any insurance proceeds.

 Net
Realized Gains/Losses from Investments

 We
measure realized gains or losses by the difference between the net proceeds from the disposition and the amortized cost basis of an investment,
without regard to unrealized gains or losses previously recognized.

 During the year ended September 30, 2023, we recognized
$11.5 million of realized losses on our portfolio investments. The realized losses were primarily due to the restructuring of one investment
and the full repayments of two investments.

the year ended September 30, 2022, we recognized $5.2 million of realized gains on our portfolio investments. The realized gains were
primarily due to the partial and full repayments of two investments and the restructuring of three investments, offset by realized losses
due to the sale of three investments and the repayment of four investments.

the year ended September 30, 2021, we recognized $42.5 million of realized losses on our portfolio investments. The realized losses were
primarily due to the sale of the MCC JV in the first fiscal quarter of 2021.

loss on extinguishment of debt

 In
the event that we modify or extinguish our debt prior to maturity, we account for it in accordance with ASC 470-50, Modifications and
Extinguishments, in which we measure the difference between the reacquisition price of the debt and the net carrying amount of the debt,
which includes any unamortized debt issuance costs.

the year ended September 30, 2023, the Company did not recognize a net loss on extinguishment of debt.

the year ended September 30, 2022, the Company recognized a net loss on extinguishment of debt of $0.3 million, which was due to the
Company's $55.3 million repayment of the 2023 Notes on December 16, 2021.

the year ended September 30, 2021, the Company recognized a net loss on extinguishment of debt of $0.1 million, which was due to the
Company's $74.0 million repayment of the 2021 Notes on November 20, 2020.

 Net
Unrealized Appreciation/Depreciation on Investments

 Net change in unrealized appreciation or depreciation on investments
reflects the net change in the fair value of our investment portfolio.

 For the year ended September 30, 2023, we had $31.9 million of net change
in unrealized appreciation on investments. The net unrealized appreciation was comprised of $1.9 million of net unrealized depreciation
on investments and $33.8 million of net unrealized appreciation that resulted from the reversal of previously recorded unrealized depreciation
on investments that were realized, partially sold, or written-off during the year.

 For
the year ended September 30, 2022, we had $14.5 million of net change in unrealized depreciation on investments. The net unrealized depreciation
was comprised of $21.3 million of net unrealized depreciation on investments and $6.9 million of net unrealized appreciation that resulted
from the reversal of previously recorded unrealized depreciation on investments that were realized, partially sold, or written-off during
the year.

 For the year
ended September 30, 2021, we had $25.3 million of net change in unrealized appreciation on investments. The net unrealized appreciation
was comprised of $54.8 million of net unrealized depreciation on investments and $80.1 million of net unrealized appreciation that resulted
from the reversal of previously recorded unrealized depreciation on investments that were realized, partially sold, or written-off during
the year.

 Provision
for Deferred Taxes on Unrealized Depreciation on Investments

consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated
with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from
temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. For the years
ended September 30, 2023, 2022 and 2021, the Company did not record a change in provision for deferred taxes on the unrealized (appreciation)/depreciation
on investments.

 Changes
in Net Assets from Operations

 For the year ended September 30, 2023, we recorded
a net increase in net assets resulting from operations of $26.9 million compared to a net decrease in net assets resulting from operations
of $6.1 million for the year ended September 30, 2022, and a net increase in net assets resulting from operations of $1.2 million for
the year ended September 30, 2021 as a result of the factors discussed above. Based on 2,092,326, 2,323,601 and 2,677,891 weighted average
common shares outstanding for the years ended September 30, 2023, 2022 and 2021, respectively, our per share net increase (decrease) in
net assets resulting from operations was $12.87, $(2.63) and $0.48 for the years ended September 30, 2023, 2022 and 2021, respectively.

 Financial
Condition, Liquidity and Capital Resources

 As
a RIC, we distribute substantially all of our net income to our stockholders and have an ongoing need to raise additional capital for
investment purposes. To fund growth, we have a number of alternatives available to increase capital, including raising equity, increasing
debt, and funding from operational cash flow.

 Our
liquidity and capital resources historically have been generated primarily from the net proceeds of public offerings of common stock,
advances from the Credit Facility and net proceeds from the issuance of notes as well as cash flows from operations. In the future, we
may generate cash from future offerings of securities, future borrowings and cash flows from operations, including interest earned from
the temporary investment of cash in U.S. government securities and other high-quality debt investments that mature in one year or less.
Our primary use of funds is investments in our targeted asset classes, cash distributions to our stockholders, and other general corporate
purposes.

 As of September
30, 2023 and 2022, we had $6.0 and $22.8 million in cash and cash equivalents, respectively.

 In
order to maintain our RIC tax treatment under the Code, we intend to distribute to our stockholders substantially all of our taxable
income, but we may also elect to periodically spill over certain excess undistributed taxable income from one tax year into the next
tax year. In addition, as a BDC, for each taxable year we generally are required to meet a coverage ratio of total assets to total senior
securities, which include borrowings and any preferred stock we may issue in the future, of at least 200% (or 150% if, pursuant to the
1940 Act, certain requirements are met). This requirement limits the amount that we may borrow.

 On
January 11, 2021, the Company announced that its board of directors approved a share repurchase program. On February 9, 2022, the Board
of Directors approved the expansion of the amount authorized for repurchase under the Company's share repurchase program from $15
million to $25 million. On February 8, 2023, the Board of Directors approved the further expansion of the amount authorized for repurchase
under the Company's share repurchase program from $25 million to $35 million. Under the share repurchase program, the Company repurchased
an aggregate of 649,996 shares of common stock through September 30, 2023, or 23.9% of shares issued as of the program's inception,
with a total cost of $25.7 million. The total remaining amount authorized under the expanded share repurchase program at September 30,
2023 was approximately $9.3 million.

 Credit
Facility

 On
December 15, 2022, the Company and its wholly-owned subsidiaries executed a three-year, $50 million revolving credit facility (the "Credit
Facility") with WoodForest Bank, N.A. ("WoodForest"), Valley National Bank, and Axiom Bank, (collectively, the "Lenders").
WoodForest is the administrative agent, sole bookrunner and sole lead arranger. As of September 30, 2023, there was $28.4 million outstanding
borrowings by the Company under the Credit Facility.

 Outstanding
loans under the Credit Facility bear a monthly interest rate at Term SOFR + 2.90%. The Company is also subject to a commitment fee of
0.25%, which shall accrue on the actual daily amount of the undrawn portion of the revolving credit. The Credit Facility contains customary
representations and warranties and affirmative and negative covenants. The Credit Facility contains customary events of default for credit
facilities of this type, including (without limitation): nonpayment of principal, interest, fees or other amounts after a stated grace
period; inaccuracy of material representations and warranties; change of control; violations of covenants, subject in certain cases to
stated cure periods; and certain bankruptcies and liquidations. If an event of default occurs and is continuing, the Company may be required
to repay all amounts outstanding under the Credit Facility.

Notes

 2021 Notes

 On
December 17, 2015, the Company issued $70.8 million in aggregate principal amount of 6.50% unsecured notes that mature on January 30,
2021 (the "2021 Notes"). On January 14, 2016, the Company closed an additional $3.25 million in aggregate principal amount
of the 2021 Notes, pursuant to the partial exercise of the underwriters' option to purchase additional notes. The 2021 Notes bore
interest at a rate of 6.50% per year, payable quarterly on January 30, April 30, July 30 and October 30 of each year, beginning January
30, 2016.

 On
October 21, 2020, the Company caused notices to be issued to the holders of the 2021 Notes regarding the Company's exercise of
its option to redeem, in whole, the issued and outstanding 2021 Notes, pursuant to Section 1104 of the Indenture dated as of February
7, 2012, between the Company and U.S. Bank National Association, as trustee, and Section 101(h) of the Third Supplemental Indenture dated
as of December 17, 2015. The Company redeemed $74,012,825 in aggregate principal amount of the issued and outstanding 2021 Notes on November
20, 2020 (the "Redemption Date"). The 2021 Notes were redeemed at 100% of their principal amount ($25 per 2021 Note), plus
the accrued and unpaid interest thereon from October 31, 2020, through, but excluding, the Redemption Date. The Company funded the redemption
of the 2021 Notes with cash on hand.

 2023 Notes

 On
March 18, 2013, the Company issued $60.0 million in aggregate principal amount of 2023 Notes. As of March 30, 2016, the 2023 Notes may
be redeemed in whole or in part at any time or from time to time at the Company's option. On March 26, 2013, the Company closed
an additional $3.5 million in aggregate principal amount of 2023 Notes, pursuant to the partial exercise of the underwriters' option
to purchase additional notes. The 2023 Notes bore interest at a rate of 6.125% per year, payable quarterly on March 30, June 30, September
30 and December 30 of each year, beginning June 30, 2013.

 On
December 12, 2016, the Company entered into an "At-The-Market" ("ATM") debt distribution agreement with FBR Capital
Markets & Co., through which the Company could offer for sale, from time to time, up to $40.0 million in aggregate principal amount
of the 2023 Notes. The Company sold 1,573,872 of the 2023 Notes at an average price of $25.03 per note, and raised $38.6 million in net
proceeds, through the ATM debt distribution agreement.

 On
March 10, 2018, the Company redeemed $13.0 million in aggregate principal amount of the 2023 Notes. The redemption was accounted for
as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.3
million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

 On
December 31, 2018, the Company redeemed $12.0 million in aggregate principal amount of the 2023 Notes. The redemption was accounted for
as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $0.2
million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

 On
December 21, 2020, the Company announced that it completed the application process for and was authorized to transfer the listing of
the 2023 Notes to the NASDAQ Global Market. The listing and trading of the 2023 Notes on the NYSE ceased at the close of trading on December
31, 2020. Effective January 4, 2021, the 2023 Notes trade on the NASDAQ Global Market under the trading symbol "PFXNL."

 On
November 15, 2021, the Company caused notices to be issued to the holders of the 2023 Notes regarding the Company's exercise of
its option to redeem $55,325,000 in aggregate principal amount of the issued and outstanding 2023 Notes on December 16, 2021. The redemption
was accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized
loss of $0.3 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

 On
December 15, 2022, the Company caused notices to be issued to the holders of its 2023 Notes regarding the Company's exercise of
its option to redeem $22,521,800 in aggregate principal amount of issued and outstanding 2023 Notes, comprising all issued and outstanding
2023 Notes, at a price equal to 100% of the principal amount of the 2023 Notes, plus accrued and unpaid interest thereon from September
30, 2022, through, but excluding, January 17, 2023 in accordance with the terms of the indenture governing the 2023 Notes. The redemption
was completed on January 17, 2023. The Company funded the redemption of the 2023 Notes with loans obtained under the Credit Facility.

 2028 Notes

 On
November 9, 2021, the Company entered into an underwriting agreement, by and between the Company and Oppenheimer & Co. Inc., as representative
of the several underwriters named in Exhibit A thereto, in connection with the issuance and sale (the "Offering") of $57,500,000
(including the underwriters' option to purchase up to $7,500,000 aggregate principal amount) in aggregate principal amount of its
5.25% Notes due 2028 (the "2028 Notes" or the "Notes"). The Offering occurred on November 15, 2021, pursuant
to the Company's effective shelf registration statement on Form N-2 previously filed with the SEC, as supplemented by a preliminary
prospectus supplement dated November 8, 2021, the pricing term sheet dated November 9, 2021 and a final prospectus supplement dated November
9, 2021. Effective November 16, 2021, the 2028 Notes began trading on the NASDAQ Global Market under the trading symbol "PFXNZ."

 On
November 15, 2021, the Company and U.S. Bank National Association, as trustee entered into a Fourth Supplemental Indenture to its base
Indenture, dated February 7, 2012, between the Company and the Trustee. The Fourth Supplemental Indenture relates to the Offering of
the 2028 Notes.

 Contractual
Obligations and Off-Balance Sheet Arrangements

 As
of September 30, 2023 and 2022, we had commitments under loan and financing agreements to fund up to $3.4 million to four portfolio companies
and $6.0 million to six portfolio companies, respectively. These commitments are primarily composed of senior secured delayed draw term
loans and revolvers, and the determination of their fair value is included in the Consolidated Schedules of Investments. The commitments
are generally subject to the borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. The
terms of the borrowings and financings subject to commitment are comparable to the terms of other loan and equity securities in our portfolio.
A summary of the composition of the unfunded commitments as of September 30, 2023 and 2022 is shown in the table below (dollars in thousands):

 30,

 2023

 30,

 2022

 SS Acquisition, LLC (dba Soccer
 Shots Franchising) - Senior Secured First Lien Delayed Draw Term Loan

 $
 -

 $
 4,000

 Kemmerer Operations, LLC - Senior Secured First
 Lien Delayed Draw Term Loan

 -

 Secure Acquisition Inc. (dba Paragon Films)
 - Senior Secured First Lien Delayed Draw Term Loan

 NVTN LLC - Senior Secured First Lien Delayed
 Draw Term Loan

 Black Angus Steakhouses, LLC Senior Secured
 First Lien Super Priority Delayed Draw Term Loan

 -

 1888 Industrial Services, LLC - Revolving Credit
 Facility

 -

 Deer Management Systems LLC - Senior Secured
 First Lien Delayed Draw Term Loan

 -

 Tamarix Capital Partners
 II, L.P. - Fund Investment

 2,038

 -

 Total unfunded commitments

 $
 3,375

 $
 6,028

 We
entered into an investment management agreement with MCC Advisors on January 11, 2011 (the "Investment Management Agreement")
in accordance with the 1940 Act. The Investment Management Agreement became effective upon the pricing of our initial public offering.
Under the Investment Management Agreement, MCC Advisors agreed to provide us with investment advisory and management services. For these
services, we agreed to pay a base management fee equal to a percentage of our gross assets and an incentive fee based on our performance.

 We
also entered into an administration agreement with MCC Advisors as our administrator. The administration agreement became effective upon
the pricing of our initial public offering. Under the administration agreement, MCC Advisors agreed to furnish us with office facilities
and equipment, provide us clerical, bookkeeping and record keeping services at such facilities and provide us with other administrative
services necessary to conduct our day-to-day operations. MCC Advisors also provided on our behalf significant managerial assistance to
those portfolio companies to which we are required to provide such assistance while the Investment Management Agreement and administration
agreement were in effect.

 The
Investment Management Agreement and administration agreement expired at the close of business on December 31, 2020, in connection with
the Company's adoption of an internalized management structure.

 The
following table shows our payment obligations for repayment of debt and other contractual obligations at September 30, 2023 (dollars
in thousands):

 Payments
 Due by Period

 2024

 2025

 2026

 2027

 Thereafter

 Total

 Revolving Credit Facility

 $
 -

 $
 (28,441,941
)

 $
 -

 $
 -

 $
 -

 $
 (28,441,941
)

 2028 Notes

 -

 -

 -

 -

 (57,500,000
)

 (57,500,000
)

 Lease Obligation (1)

 (156,359
)

 (156,971
)

 (161,680
)

 (27,417
)

 -

 (502,427
)

 Total
 contractual obligations

 $
 (156,359
)

 $
 (28,598,912
)

 $
 (161,680
)

 $
 (27,417
)

 $
 (57,500,000
)

 $
 (86,444,368
)

 (1)

 Operating Lease Obligation means a rent payment obligation
 under a lease classified as an operating lease and disclosed pursuant to ASC 842, as may be modified or supplemented.

 Distributions

 We
have elected, and intend to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code.
As a RIC, in any taxable year with respect to which we timely distribute at least 90 percent of the sum of our (i) investment company
taxable income (which is generally our net ordinary income plus the excess of realized net short-term capital gains over realized net
long-term capital losses) determined without regard to the deduction for dividends paid and (ii) net tax exempt interest income (which
is the excess of our gross tax exempt interest income over certain disallowed deductions), we (but not our stockholders) generally will
not be subject to U.S. federal income tax on investment company taxable income and net capital gains that we distribute to our stockholders.
We intend to distribute annually all or substantially all of such income, but we may also elect to periodically spill over certain excess
undistributed taxable income from one tax year to the next tax year. To the extent that we retain our net capital gains or any investment
company taxable income, we will be subject to U.S. federal income tax. We may choose to retain our net capital gains or any investment
company taxable income, and pay the associated federal corporate income tax or excise tax, described below.

 Amounts
not distributed on a timely basis in accordance with a calendar year distribution requirement are subject to a nondeductible 4% U.S.
federal excise tax payable by us. To avoid this tax, we must distribute (or be deemed to have distributed) during each calendar year
an amount equal to the sum of:

 1)

 at least 98.0% of our ordinary
 income (not taking into account any capital gains or losses) for the calendar year;

 2)

 at least 98.2% of the amount
 by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for a one-year period ending on October
 31st of the calendar year; and

 3)

 income realized, but not
 distributed, in preceding years and on which we did not pay federal income tax.

 While
we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the 4% U.S. federal excise tax,
sufficient amounts of our taxable income and capital gains may not be distributed to avoid entirely the imposition of the tax. In that
event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.

 We
cannot assure you that we will achieve investment results that will allow us to pay a specified level of dividends or year-to-year increases
in dividends. In addition, the inability to satisfy the asset coverage test applicable to us as a BDC could limit our ability to pay
dividends. All dividends will be paid at the discretion of our board of directors and will depend on our earnings, our financial condition,
maintenance of our RIC tax treatment, compliance with applicable BDC regulations and such other factors as our board of directors may
deem relevant from time to time. We cannot assure you that we will pay dividends to our stockholders in the future.

 To
the extent our taxable earnings fall below the total amount of our distributions for a taxable year, a portion of those distributions
may be deemed a return of capital to our stockholders for U.S. federal income tax purposes.

 Stockholders
should read any written disclosure accompanying a distribution carefully and should not assume that the source of any distribution is
our ordinary income or gains.

 We
have adopted an "opt out" dividend reinvestment plan for our common stockholders. As a result, if we declare a cash dividend
or other distribution, each stockholder that has not "opted out" of our dividend reinvestment plan will have their dividends
automatically reinvested in additional shares of our common stock rather than receiving cash dividends. Stockholders who receive distributions
in the form of shares of common stock will be subject to the same federal, state and local tax consequences as if they received cash
distributions.

 The
Company did not declare any regular distribution payments during the years ended September 30, 2023, 2022 and 2021. During the year ended
September 30, 2022, a special dividend was declared in the amount of $265,798 on June 24, 2022 payable on July 13, 2022 to Stockholders
of record on July 5, 2022.

 Related
Party Transactions

 We
have adopted a formal business code of conduct and ethics that governs the conduct of our CEO, CFO, chief accounting officer (which role
is currently fulfilled by our CFO) and controller (Covered Officers). Our officers and directors also remain subject to the duties imposed
by both the 1940 Act and the Delaware General Corporation Law. Our Code of Business Conduct and Ethics requires that all Covered Officers
promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between an individual's
personal and professional relationships. Pursuant to our Code of Business Conduct and Ethics, each Covered Officer must disclose to the
Company's CCO any conflicts of interest, or actions or relationships that might give rise to a conflict. Any approvals or waivers
under our Code of Business Conduct and Ethics must be considered by the disinterested directors.

 Base
Management Fee and Incentive Fee

 Prior
to January 1, 2021, we operated pursuant to an investment management agreement with MCC Advisors which expired on December 31, 2020. Since
January 1, 2021, we have operated pursuant to an internalized management structure. Through December 31, 2020, the investment management
agreement with MCC Advisors provided for a base management fee and an incentive fee. The base management fee was calculated at an annual
rate of 1.75% (0.4375% per quarter) of up to $1.0 billion of the Company's gross assets and 1.50% (0.375% per quarter) of any amounts
over $1.0 billion of the Company's gross assets and was payable quarterly in arrears. The base management fee was to be calculated
based on the average value of the Company's gross assets at the end of the two most recently completed calendar quarters and was
to be appropriately pro-rated for any partial quarter. For the year ended September 30, 2021, the Company incurred base management fees
to MCC Advisors of $1.1 million. No incentive fee was payable for the year ended September 30, 2021. Since January 1, 2021, the Company
no longer incurs management fees under its current internalized structure.

 Pledge
and Security Agreement

 In
connection with the Credit Facility discussed in Note 5, the Company has entered into a Pledge and Security Agreement with the Lenders
pursuant to which the Company and its wholly owned subsidiaries have pledged all their assets, including the cash and securities held
in the Company's custodial account with Computershare Trust Company, N.A., as collateral for any borrowings made by the Company
pursuant to the Credit Agreement. The Lenders have the typical rights and remedies of a secured lender under the Uniform Commercial Code,
including the right to foreclose on the collateral pledged by the Company.

 Critical
Accounting Policies

 The
preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets
and liabilities at the date of the financial statements, and revenues and expenses during the periods reported. Actual results could
materially differ from those estimates. We have identified the following items as critical accounting policies.

 Valuation
of Portfolio Investments

 The
Company follows ASC 820 for measuring the fair value of portfolio investments. Fair value is the price that would be received in the
sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where
available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable
prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation
and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments' complexity.
The Company's fair value analysis includes an analysis of the value of any unfunded loan commitments. Financial investments recorded
at fair value in the consolidated financial statements are categorized for disclosure purposes based upon the level of judgment associated
with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation
of the investment as of the measurement date. Investments which are valued using NAV as a practical expedient are excluded from this
hierarchy, and certain prior period amounts have been reclassified to conform to the current period presentation. The three levels are
defined below:

 Level 1 - Valuations based
 on quoted prices in active markets for identical assets or liabilities at the measurement date.

 Level 2 - Valuations based
 on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

 Level 3 - Valuations based
 on inputs that are unobservable and significant to the overall fair value measurement.

 We
value investments for which market quotations are readily available at their market quotations, which are generally obtained from an
independent pricing service or multiple broker-dealers or market makers. We weight the use of third-party broker quotes, if any, in determining
fair value based on our understanding of the level of actual transactions used by the broker to develop the quote and whether the quote
was an indicative price or binding offer. However, a readily available market value is not expected to exist for many of the investments
in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our board of directors under
our valuation policy and process. We may seek pricing information with respect to certain of our investments from pricing services or
brokers or dealers in order to value such investments.

 Valuation
methods may include comparisons of financial ratios of the portfolio companies that issued such private equity securities to peer companies
that are public, the nature and realizable value of any collateral, the portfolio company's ability to make payments and its earnings
and discounted cash flows, the markets in which the portfolio company does business, and other relevant factors. When an external event
such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external
event to corroborate the private equity valuation. Due to the inherent uncertainty of determining the fair value of investments that
do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have
been used had a readily available market value existed for such investments, and the differences could be material.

 In
December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which permits a BDC's board of directors to designate its executive
officer(s) as a valuation designee to determine the fair value of its investment portfolio, subject to the oversight of the board. The
Board approved policies and procedures pursuant to Rule 2a-5 and has designated Ellida McMillan, the Company's CFO, to serve as
the Board's valuation designee ("Valuation Designee"), subject to the Board's oversight, effective September
8, 2022.

 With
respect to investments for which market quotations are not readily available, our board oversees and our Valuation Designee undertakes
a multi-step valuation process each quarter, as described below:

 Our quarterly valuation
 process generally begins with each investment being initially valued by a Valuation Firm.

 Available third-party market
 data will be reviewed by Company personnel designated by the Valuation Designee ("Fair Value Personnel") and the Valuation
 Firm.

 Available portfolio company
 data and general industry data is then reviewed by the Fair Value Personnel.

 Preliminary
 valuation conclusions are then documented by the Valuation Firm and discussed with the Fair
 Value Personnel.

 The Valuation Designee
 then determines the fair value of each investment in the Company's portfolio in good faith based on such discussions, the Company's
 Valuation Policy and the Valuation Firms' final estimated valuations.

 In
following these approaches, the types of factors that are taken into account in fair value pricing investments include available current
market data, including relevant and applicable market trading and transaction comparables; applicable market yields and multiples; security
covenants; call protection provisions; information rights; the nature and realizable value of any collateral; the portfolio company's
ability to make payments; the portfolio company's earnings and discounted cash flows; the markets in which the portfolio company
does business; comparisons of financial ratios of peer companies that are public; comparable merger and acquisition transactions; and
the principal market and enterprise values.

 Determination
of fair values involves subjective judgments and estimates made by management. The notes to our consolidated financial statements refer
to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial
statements.

 Revenue
Recognition

 Our revenue
recognition policies are as follows:

and Related Investment Income: We account for investment transactions on a trade-date basis and interest income, adjusted for amortization
of premiums and accretion of discounts, is recorded on an accrual basis. For investments with contractual PIK interest, which represents
contractual interest accrued and added to the principal balance that generally becomes due at maturity, we will not accrue PIK interest
if the portfolio company valuation indicates that the PIK interest is not collectible. Origination, closing and/or commitment fees associated
with investments in portfolio companies are recognized as income when the investment transaction closes. Other fees are capitalized as
deferred revenue and recorded into income over the respective period. Prepayment penalties received by the Company for debt instruments
paid back to the Company prior to the maturity date are recorded as income upon receipt. Realized gains or losses on investments are
measured by the difference between the net proceeds from the disposition and the amortized cost basis of investment, without regard to
unrealized gains or losses previously recognized. We report changes in the fair value of investments that are measured at fair value
as a component of the net change in unrealized appreciation/(depreciation) on investments in our Consolidated Statements of Operations.

 Non-accrual:
 We place loans on non-accrual status when principal and interest payments are past due by 90 days or more, or when there is reasonable
doubt that we will collect principal or interest. Accrued interest is generally reversed when a loan is placed on non-accrual. Interest
payments received on non-accrual loans may be recognized as income or applied to principal depending upon management's judgment.
Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in our management's judgment,
are likely to remain current. At September 30, 2023, certain investments in four portfolio companies held by the Company were on non-accrual
status with a combined fair value of approximately $6.5 million, or 2.9% of the fair value of our portfolio. At September 30, 2022, certain
investments in five portfolio companies held by the Company were on non-accrual status with a combined fair value of approximately $5.2
million, or 2.7% of the fair value of our portfolio.

 Federal
Income Taxes

 The
Company has elected, and intends to qualify annually, to be treated for U.S. federal income tax purposes as a RIC under Subchapter M
of the Code and it intends to operate in a manner so as to maintain its RIC tax treatment. To do so, among other things, the Company
is required to meet certain source of income and asset diversification requirements and must timely distribute to its stockholders at
least 90% of the sum of investment company taxable income ("ICTI") including PIK, as defined by the Code, and net tax exempt
interest income (which is the excess of our gross tax exempt interest income over certain disallowed deductions) for each taxable year.
The Company will be subject to a nondeductible U.S. federal excise tax of 4% on undistributed income if it does not distribute at least
98% of its net ordinary income for any calendar year and 98.2% of its capital gain net income for each one-year period ending on October
31 of such calendar year and any income realized, but not distributed, in preceding years and on which it did not pay federal income
tax. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of current year dividend
distributions into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Company determines that
its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for excise tax purposes,
the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. Any such carryover ICTI must
be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year
which generated such ICTI.

federal income tax requirements differ from GAAP, distributions in accordance with tax requirements may differ from net investment income
and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are
reclassified among capital accounts in the consolidated financial statements to reflect their tax character. Temporary differences arise
when certain items of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also
result from the treatment of short-term gains as ordinary income for tax purposes.

 Recent
Developments

 In December 2023, the Company established a subsidiary to serve as a regulated insurance company. This subsidiary
also entered into a merger agreement pursuant to which it agreed to acquire a controlling interest in VR Insurance SPV, LLC, a company
primarily engaged in the insurance business through its subsidiaries ("VR"), and to provide additional capital to such company.
Our subsidiary's controlling interest in VR is being acquired pursuant to a plan of reorganization duly adopted by VR which calls
for the merger and recapitalization of VR. The Company's total investment in the insurance subsidiary and VR is expected to approximate
$49 million. The merger transaction is presently expected to close in the first half of 2024 and is subject to various closing conditions,
including insurance regulatory approvals.

 Item
7A. Quantitative and Qualitative Disclosures About Market Risk

 We
are subject to financial market risks, including changes in interest rates. Changes in interest rates may affect both our cost of funding
and our interest income from portfolio investments and cash and cash equivalents. Our investment income will be affected by changes in
various interest rates, including SOFR, to the extent our debt investments include floating interest rates. In the future, we expect
other loans in our portfolio will have floating interest rates. In 2023, the Federal Reserve raised short-term interest rates and has
indicated additional interest rate increases may come. In addition, U.S. and global capital markets and credit markets have experienced
a higher level of stress due to the higher interest rate environment, pandemics, and other market events, which has resulted in an increase
in the level of volatility across such markets. We may hedge against interest rate fluctuations by using standard hedging instruments
such as futures, options and forward contracts subject to the requirements of the 1940 Act. For the year ended September 30, 2023, we
did not engage in hedging activities.

 As of September 30, 2023, 59.6% of our income-bearing investment portfolio
bore interest based on floating rates based upon fair value. The substantial majority of this component of our portfolio bore interest
based on a SOFR reference rate. Certain such investments used a LIBOR reference rate at September 30, 2023, but no such investments utilize
a LIBOR reference rate as of the date of this report. A prolonged reduction in interest rates will reduce our gross investment income
and could result in a decrease in our net investment income if such decreases in the applicable reference rates are not offset by a corresponding
increase in the spread over the reference rates that we earn on any portfolio investments, a decrease in our operating expenses, including
with respect to any income incentive fee, or a decrease in the interest rate of our floating interest rate liabilities tied to reference
rates. In contrast, a rise in the general level of interest rates can be expected to lead to higher interest rates applicable to any variable
rate investments we hold and to declines in the value of any fixed rate investments we hold. In addition, a rise in interest rates may
increase the likelihood that a portfolio company defaults on a loan. However, many of our variable rate investments provide for an interest
rate floor, which may prevent our interest income from increasing until benchmark interest rates increase beyond a threshold amount. The
composition of our floating rate debt investments by cash interest rate floor as of September 30, 2023 was as follows (dollars in thousands):

 LIBOR
 and SOFR Floor

 Fair
 Value

 %
 of Floating

 Rate Portfolio

 Under 1%

 $
 20,461

 20.5
 %

 1% to under 2%

 56,574

 56.8

 3% to under 4%

 11,130

 11.2

 No Floor

 11,454

 11.5

 Total

 $
 99,619

 100.0
 %

 Based
on our Consolidated Statements of Assets and Liabilities as of September 30, 2023, the following table (dollars in thousands) shows the
approximate increase/(decrease) in components of net assets resulting from operations of hypothetical reference rate changes in interest
rates, assuming no changes in our investment and capital structure.

 Change in
 Interest Rates

 Income (1)

 Expense

 Net
 Increase/
 (Decrease)

 Up 300 basis points

 $
 6,800

 $
 (900
)

 $
 5,900

 Up 200 basis points

 4,500

 (600
)

 3,900

 Up 100 basis points

 2,300

 (300
)

 2,000

 Down 100 basis points

 (2,300
)

 (2,000
)

 Down 200 basis points

 (4,500
)

 (3,900
)

 Down 300 basis points

 (6,800
)

 (5,900
)

 (1)

 Assumes no defaults or
 prepayments by portfolio companies over the next twelve months.

 Item
8. Consolidated Financial Statements and Supplementary Data

TO CONSOLIDATED FINANCIAL STATEMENTS

 Page

 Reports
 of Independent Registered Public Accounting Firm s

 Statements of Assets and Liabilities as of September 30, 2023 and 2022

 Statements of Operations for the years ended September 30, 2023, 2022 and 2021

 Statements of Changes in Net Assets for the years ended September 30, 2023, 2022 and 2021

 Statements of Cash Flows for the years ended September 30, 2023, 2022 and 2021

 Schedules of Investments as of September 30, 2023 and 2022

 Notes
 to Consolidated Financial Statements

 F- 1

 Reports
of Independent Registered Public Accounting Firms

 To the Shareholders and Board of Directors

 PhenixFIN Corporation:

 Opinion on the Consolidated Financial Statements

 We have audited the accompanying consolidated statement of assets and
liabilities of PhenixFIN Corporation and subsidiaries (the Company), including the consolidated schedule of investments, as of September 30,
2023, the related consolidated statements of operations, changes in net assets, and cash flows for the year ended September 30, 2023,
and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present
fairly, in all material respects, the financial position of the Company as of September 30, 2023, and the results of its operations
and its cash flows for the year ended September 30, 2023, in conformity with U.S. generally accepted accounting principles.

 Basis for Opinion

 These consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required
to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal
control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.

 Our audit included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial
statements. Such procedures also included confirmation of securities owned as of September 30, 2023, by correspondence with custodians,
portfolio companies, agents, or by other appropriate auditing procedures. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audit provides a reasonable basis for our opinion.

 Critical Audit Matter

 The critical audit matter communicated below is a
matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated
to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit
matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 Fair value of investments

 As discussed in
Notes 2, 3 and 4 of the consolidated financial statements, the Company measures its investments at fair value. The Company determines
the fair value of investments that are not publicly traded and whose market quotations are not readily available using one or more methodologies
including the market approach and income approach, which requires the Company to make subjective judgments and estimates using unobservable
inputs. As of September 30, 2023, the fair value of level 3 investments was $165.3 million.

 We identified the
assessment of the fair value of level 3 investments for which unobservable inputs were used as a critical audit matter. The key assumptions
used to estimate the fair value of these investments related to the market yield associated with the portfolio company used in an income
approach and the selection of financial performance multiples of comparative companies used in a market approach. Evaluating these assumptions
involved a high degree of subjective auditor judgment and involvement of professionals with specialized skills and knowledge. Changes
in these assumptions could have a significant impact on the estimated fair value of investments.

 The following are the procedures we performed to address
this critical audit matter. We evaluated the design of certain internal controls over the Company's process to estimate the fair
value of level 3 investments, including controls related to the determination of market yield and financial performance multiples assumptions.
We evaluated the Company's ability to estimate fair value by comparing prior period fair values for a selection of investments to
transaction prices of transactions occurring subsequent to the prior period valuation date. We involved valuation professionals with specialized
skills and knowledge who, for a selection of the Company's investments, evaluated the Company's estimate of fair value by
developing an independent estimate of fair value using independent market yields and financial performance multiples that were developed
using relevant market and portfolio company financial information and comparing such estimates to the fair values recorded by the Company
for the selected investments.

 /s/ KPMG LLP

 We have served as the Company's auditor since 2023.

 New York, New York

December 22, 2023

 F- 2

 To the Shareholders and the Board of Directors of PhenixFIN Corporation

 Opinion on the Financial Statements

 We have audited the accompanying consolidated statement of assets and
liabilities of PhenixFIN Corporation (the Company), including the consolidated schedule of investments, as of September 30, 2022, the
related consolidated statements of operations, changes in net assets, and cash flows for each of the two years in the period ended September
30, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the
consolidated financial statements present fairly, in all material respects, the financial position of the Company at September 30, 2022,
and the results of its operations, changes in its net assets, and its cash flows for each of the two years in the period ended September
30, 2022 in conformity with U.S. generally accepted accounting principles.

 Basis for Opinion

 These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to
be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit
of the Company's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of
internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included
confirmation of investments owned as of September 30, 2022, by correspondence with the custodians, directly with designees of the portfolio
companies and debt agents, as applicable, when replies were not received from designees of the portfolio companies and debt agents, we
performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable
basis for our opinion.

 /s/ Ernst & Young LLP

 We have served as the Company's auditor from 2010 to 2022.

 New York, New York

 December 22, 2022

 F- 3

Statements of Assets and Liabilities

 2023

 2022

 Assets:

 Investments at fair value

 Non-controlled, non-affiliated investments (amortized cost of $ 134,339,121
and $ 147,378,917, respectively)

 $
 125,531,031

 $
 122,616,275

 Affiliated investments (amortized cost of $ 48,223,910 and $ 30,585,884,
respectively)

 37,289,617

 12,314,192

 Controlled investments (amortized cost of $ 82,437,692 and $ 85,483,093, respectively)

 63,640,043

 58,026,182

 Total Investments at fair value

 226,460,691

 192,956,649

 Cash and cash equivalents

 5,988,223

 22,768,066

 Receivables:

 Interest receivable

 971,115

 727,576

 Paydown receivable

 -

 112,500

 Dividends receivable

 161,479

 269,330

 Other receivable

 31,425

 36,992

 Other assets

 833,000

 1,192,677

 Deferred financing costs

 699,124

 50,000

 Due from affiliate

 409,214

 271,962

 Prepaid share repurchase

 199,019

 489,156

 Receivable for investments sold

 3,940,175

 -

 Total Assets

 $
 239,693,465

 $
 218,874,908

 Liabilities:

 Credit facility and note payable (net of debt issuance costs of $ 1,688,835 and $ 2,059,164, respectively)

 $
 84,253,106

 $
 77,962,636

 Payable for investments purchased

 4,123,059

 16,550,000

 Accounts payable and accrued expenses

 3,066,984

 2,040,277

 Interest and fees payable

 690,398

 503,125

 Other liabilities

 432,698

 572,949

 Deferred revenue

 421,685

 325,602

 Administrator expenses payable (see Note 6)

 -

 74,911

 Total Liabilities

 92,987,930

 98,029,500

 Commitments and Contingencies (see Note 8)

 Net Assets:

 Common Shares, $ 0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,073,713 and 2,102,129 common shares outstanding, respectively

 2,074

 2,102

 Capital in excess of par value

 694,812,239

 675,401,802

 Total distributable earnings (loss)

 ( 548,108,778
)

 ( 554,558,496
)

 Total Net Assets

 146,705,535

 120,845,408

 Total Liabilities and Net Assets

 $
 239,693,465

 $
 218,874,908

 Net Asset Value Per Common Share

 $
 70.75

 $
 57.49

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 4

Statements of Operations

 For the Years Ended September 30,

 2023

 2022

 2021

 Interest Income:

 Interest from investments

 Non-controlled, non-affiliated investments:

 Cash

 $
 8,031,539

 $
 5,207,850

 $
 5,974,807

 Payment in-kind

 506,555

 444,741

 609,964

 Affiliated investments:

 Cash

 1,925,293

 639,733

 1,099,809

 Payment in-kind

 460,856

 374,981

 327,804

 Controlled investments:

 Cash

 667,312

 2,489,381

 75,000

 Payment in-kind

 557,981

 -

 -

 Total interest income

 12,149,536

 9,156,686

 8,087,384

 Dividend income

 6,856,268

 5,503,425

 21,564,348

 Interest from cash and cash equivalents

 400,031

 139,942

 10,402

 Fee income (see Note 9)

 324,290

 420,279

 2,566,519

 Other income

 402,138

 323,828

 78,204

 Total Investment Income

 20,132,263

 15,544,160

 32,306,857

 Expenses:

 Base management fees (see Note 6)

 -

 -

 1,146,403

 Interest and financing expenses

 5,531,833

 5,113,105

 5,800,100

 Salaries and benefits

 4,186,852

 2,952,106

 1,993,277

 Professional fees, net

 1,404,676

 1,340,828

 559,975

 General and administrative expenses

 983,274

 1,103,125

 1,012,147

 Directors fees

 728,833

 712,000

 1,039,717

 Insurance expenses

 466,319

 590,178

 1,619,536

 Administrator expenses (see Note 6)

 320,310

 301,281

 612,983

 Total expenses

 13,622,097

 12,112,623

 13,784,138

 Net Investment Income

 6,510,166

 3,431,537

 18,522,719

 Realized and unrealized gains (losses) on investments

 Net realized gains (losses):

 Non-controlled, non-affiliated investments

 ( 10,538,228
)

 810,240

 7,747,672

 Affiliated investments

 ( 1,018,267
)

 4,408,961

 ( 10,088,405
)

 Controlled investments

 23,456

 1,850

 ( 40,144,795
)

 Total net realized gains (losses)

 ( 11,533,039
)

 5,221,051

 ( 42,485,528
)

 Net change in unrealized gains (losses):

 Non-controlled, non-affiliated investments

 15,954,552

 ( 16,701,153
)

 ( 5,022,484
)

 Affiliated investments

 7,327,399

 96,490

 ( 10,342,450
)

 Controlled investments

 8,659,262

 2,141,326

 40,728,006

 Total net change in unrealized gains (losses)

 31,941,213

 ( 14,463,337
)

 25,363,072

 Loss on extinguishment of debt (see Note 5)

 -

 ( 296,197
)

 ( 122,355
)

 Total realized and unrealized gains (losses)

 20,408,174

 ( 9,538,483
)

 ( 17,244,811
)

 Net Increase (Decrease) in Net Assets Resulting from Operations

 $
 26,918,340

 $
 ( 6,106,946
)

 $
 1,277,908

 Weighted average basic and diluted earnings per common share

 $
 12.87

 $
 ( 2.63
)

 $
 0.48

 Weighted average common shares outstanding - basic and diluted (see Note 11)

 2,092,326

 2,323,601

 2,677,891

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 5

Statements of Changes in Net Assets

 Common Stock

 Par Amount

 Capital in
 Excess of
 Par Value

 Total
 Distributable
 Earnings/(Loss)

 Total Net
 Assets

 Balance at September 30, 2020

 2,723,709

 $
 2,724

 $
 672,381,617

 $
 ( 521,764,824
)

 $
 150,619,517

 OPERATIONS

 Net investment income (loss)

 -

 -

 -

 18,522,719

 18,522,719

 Net realized gains (losses) on investments

 -

 -

 -

 ( 42,485,528
)

 ( 42,485,528
)

 Net change in unrealized appreciation (depreciation) on investments

 -

 -

 -

 25,363,072

 25,363,072

 Net loss on extinguishment of debt

 -

 -

 -

 ( 122,355
)

 ( 122,355
)

 CAPITAL SHARE TRANSACTIONS

 Distributions declared

 -

 -

 -

 -

 -

 Repurchase of common shares

 ( 206,488
)

 ( 207
)

 ( 8,203,237
)

 -

 ( 8,203,444
)

 Tax reclassification of shareholders' equity in accordance with generally accepted accounting principles

 -

 -

 24,688,262

 ( 24,688,262
)

 -

 Total Increase (Decrease) in Net Assets

 ( 206,488
)

 ( 207
)

 16,485,025

 ( 23,410,354
)

 ( 6,925,536
)

 Balance at September 30, 2021

 2,517,221

 $
 2,517

 $
 688,866,642

 $
 ( 545,175,178
)

 $
 143,693,981

 OPERATIONS

 Net investment income (loss)

 -

 -

 -

 3,431,537

 3,431,537

 Net realized gains (losses) on investments

 -

 -

 -

 5,221,051

 5,221,051

 Net change in unrealized appreciation (depreciation) on investments

 -

 -

 -

 ( 14,463,337
)

 ( 14,463,337
)

 Net loss on extinguishment of debt

 -

 -

 -

 ( 296,197
)

 ( 296,197
)

 CAPITAL SHARE TRANSACTIONS

 Distributions declared

 -

 -

 ( 265,798
)

 -

 ( 265,798
)

 Repurchase of common shares

 ( 415,092
)

 ( 415
)

 ( 16,475,414
)

 -

 ( 16,475,829
)

 Tax reclassification of shareholders' equity in accordance with generally accepted accounting principles

 -

 -

 3,276,372

 ( 3,276,372
)

 -

 Total Increase (Decrease) in Net Assets

 ( 415,092
)

 ( 415
)

 ( 13,464,840
)

 ( 9,383,318
)

 ( 22,848,573
)

 Balance at September 30, 2022

 2,102,129

 $
 2,102

 $
 675,401,802

 $
 ( 554,558,496
)

 $
 120,845,408

 OPERATIONS

 Net investment income (loss)

 -

 -

 -

 6,510,166

 6,510,166

 Net realized gains (losses) on investments

 -

 -

 -

 ( 11,533,039
)

 ( 11,533,039)

 Net change in unrealized appreciation (depreciation) on investments

 -

 -

 -

 31,941,213

 31,941,213

 Net loss on extinguishment of debt

 -

 -

 -

 -

 -

 CAPITAL SHARE TRANSACTIONS

 Repurchase of common shares

 ( 28,416
)

 ( 28
)

 ( 1,058,185
)

 -

 ( 1,058,213
)

 Tax reclassification of shareholders' equity in accordance with generally accepted accounting principles

 -

 -

 20,468,622

 ( 20,468,622
)

 -

 Total Increase (Decrease) in Net Assets

 ( 28,416
)

 ( 28
)

 ( 19,410,437
)

 6,449,718

 25,860,127

 Balance at September 30, 2023

 2,073,713

 $
 2,074

 $
 694,812,239

 $
 ( 548,108,778
)

 $
 146,705,535

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 6

Statements of Cash Flows

 For the Years Ended September 30,

 2023

 2022

 2021

 Cash Flows from Operating Activities:

 Net increase (decrease) in net assets resulting from operations

 $
 26,918,340

 $
 ( 6,106,946
)

 $
 1,277,908

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

 Investment increases due to payment-in-kind interest

 ( 1,525,392
)

 ( 819,722
)

 ( 937,768
)

 Net amortization of premium (discount) on investments

 ( 1,560,684
)

 ( 219,513
)

 ( 44,455
)

 Amortization of debt issuance cost

 370,329

 368,471

 363,812

 Amortization of deferred financing cost

 286,597

 -

 -

 Net realized (gains) losses from investments

 11,533,039

 ( 5,221,051
)

 42,485,528

 Net unrealized (gains) losses on investments

 ( 31,941,213
)

 14,463,337

 ( 25,363,072
)

 Proceeds from sale and settlements of investments

 66,642,920

 123,801,226

 124,303,888

 Purchases, originations and participations

 ( 76,652,712
)

 ( 173,321,143
)

 ( 45,340,354
)

 Loss on extinguishment of debt

 -

 296,197

 122,355

 (Increase) decrease in operating assets:

 Fees receivable

 -

 1,872,700

 ( 1,753,672
)

 Interest receivable

 ( 243,539
)

 ( 356,000
)

 252,948

 Due from affiliate

 ( 137,252
)

 ( 271,962
)

 -

 Receivable for investments sold

 ( 3,940,175
)

 -

 -

 Dividends receivable

 107,851

 ( 188,119
)

 ( 81,211
)

 Paydown receivable

 112,500

 179,515

 ( 292,015
)

 Other receivable

 5,567

 ( 36,992
)

 -

 Prepaid share repurchase

 290,137

 -

 -

 Other assets

 359,677

 159,069

 691,813

 Increase (decrease) in operating liabilities:

 Payable for investments purchased

 ( 12,426,941
)

 14,964,000

 1,586,000

 Accounts payable and accrued expenses

 1,026,707

 623,753

 ( 691,701
)

 Due to affiliates

 -

 ( 280,323
)

 227,240

 Administrator expenses payable

 ( 74,911
)

 6,991

 ( 89,045
)

 Interest and fees payable

 187,273

 503,125

 ( 801,805
)

 Deferred revenue

 96,083

 325,602

 ( 10,529
)

 Management and incentive fees payable, net

 -

 -

 ( 1,392,022
)

 Other liabilities

 ( 140,251
)

 ( 40,586
)

 613,534

 Net cash provided by (used in) operating activities

 ( 20,706,050
)

 ( 29,298,371
)

 95,127,377

 Cash Flows from Financing Activities:

 Debt issuance

 36,441,941

 57,500,000

 -

 Paydowns on debt

 ( 30,521,800
)

 ( 55,325,000
)

 ( 74,012,825
)

 Distributions paid to shareholders

 -

 ( 265,798
)

 -

 Debt issuance costs paid

 -

 ( 2,311,036
)

 -

 Deferred financing costs

 ( 935,721
)

 -

 -

 Repurchase of common shares

 ( 1,058,213
)

 ( 16,964,985
)

 ( 8,203,444
)

 Net cash provided by (used in) financing activities

 3,926,207

 ( 17,366,819
)

 ( 82,216,269
)

 Net increase (decrease) in cash and cash equivalents

 ( 16,779,843
)

 ( 46,665,190
)

 12,911,108

 Cash and cash equivalents, beginning of period

 22,768,066

 69,433,256

 56,522,148

 Cash and cash equivalents, end of period

 $
 5,988,223

 $
 22,768,066

 $
 69,433,256

 Supplemental information:

 Interest paid during the period

 $
 4,647,166

 $
 4,241,510

 $
 6,601,905

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 7

Schedule of Investments

 As
of September 30, 2023

 Type

 Par

 Fair

 %

 Non-Controlled/Non-Affiliated
 Investments:

 Altisource S.A.R.L.(11)

 Senior Secured First Lien Term Loan B
 (SOFR + CSA + 5.00 %, 3.75 % PIK)(20)(25)

 4/30/2025

 $
 9,565,710

 $
 8,507,963

 $
 7,805,619

 5.31
 %

 Warrants(21)

 5/22/2027

 75,080

 -

 206,470

 0.14
 %

 9,640,790

 8,507,963

 8,012,089

 5.45
 %

 Arcline FM Holdings, LLC

 First Lien Term Loans
 (SOFR + CSA + 4.75 %, 0.75 % Floor)(20)(25)

 6/23/2028

 2,679,494

 2,591,013

 2,644,660

 1.80
 %

 2,679,494

 2,591,013

 2,644,660

 1.80
 %

 Be Green Packaging, LLC

 Containers, Packaging & Glass

 Equity - 417 Common Units(21)

 416,250

 -

 0.00
 %

 416,250

 -

 0.00
 %

 Boostability Seotowncenter, Inc.

 Equity - 833,152 Common Units(21)

 66,475

 -

 0.00
 %

 66,475

 -

 0.00
 %

 CB&L Associates Holdco I, LLC (11)

 First Lien Term Loan
 (SOFR + CSA+ 2.75 %, 1.00 % Floor)(14)(20)(24)

 11/1/2025

 5,916,102

 4,990,179

 5,191,380

 3.53
 %

 5,916,102

 4,990,179

 5,191,380

 3.53
 %

 Chimera Investment Corp.(11)

 Equity - 117,310 Class C Preferred Units(13)(15)

 117,310

 2,884,724

 2,116,271

 1.44
 %

 Equity - 163,601 Class D Preferred Units(13)(9)

 163,601

 3,463,275

 3,414,353

 2.32
 %

 280,911

 6,347,999

 5,530,624

 3.76
 %

 Property CTL Pass Through Trust

 Certificates(14)

 597,795

 7,547,670

 6,217,067

 4.23
 %

 DataOnline Corp.

 (SOFR + CSA + 5.50 %, 1.00 % Floor)(20)(25)

 4,812,500

 4,812,500

 4,764,375

 3.24
 %

 Revolving Credit Facility
 (SOFR + CSA + 5.50 %, 1.00 % Floor)(20)(25)

 707,143

 0.48
 %

 5,526,786

 5,526,786

 5,471,518

 3.72
 %

 Deer Management Systems LLC

 First Lien Term Loan
 (SOFR + CSA + 8.25 %, 3.00 % Floor)(8)(20)(25)

 5/1/2028

 3,357,500

 3,294,306

 3,323,925

 2.26
 %

 3,357,500

 3,294,306

 3,323,925

 2.26
 %

 DirecTV Financing, LLC

 (SOFR + CSA + 5.00 %, 0.75 % Floor)(14)(20)(24)

 8/2/2027

 4,003,908

 2.72
 %

 4,003,908

 2.72
 %

 First Brands Group, LLC

 (SOFR + CSA + 5.00 %, 1.00 % Floor)(20)(26)

 3/30/2027

 3,880,402

 2.64
 %

 3,880,402

 2.64
 %

 Franklin BSP Realty Trust, Inc.(11)

 Equity - 226,107 Common Units(13)

 226,107

 3,572,788

 2,993,657

 2.04
 %

 226,107

 3,572,788

 2,993,657

 2.04
 %

 Global Accessories Group, LLC

 Consumer goods: Non-durable

 Equity - 3.8 % Membership Interest(21)

 151,337

 -

 0.00
 %

 151,337

 -

 0.00
 %

 Innovate Corp.(11)

 8.50 % Senior Secured Notes(14)

 2/1/2026

 2,750,000

 2,615,913

 2,076,250

 1.41
 %

 2,750,000

 2,615,913

 2,076,250

 1.41
 %

 Invesco Mortgage Capital, Inc.(11)

 Equity - 205,000 Class C Preferred Units(13)(16)

 5,035,506

 3,989,300

 2.71
 %

 5,035,506

 3,989,300

 2.71
 %

 JFL-NGS-WCS Partners, LLC

 Senior Secured First Lien Term Loan B
 (SOFR + CSA+ 5.50 %, 1.00 % Floor)(20)(24)

 11/12/2026

 861,605

 864,482

 865,913

 0.59
 %

 Equity - 10,000,000 Units(21)

 11,733,525

 7.98
 %

 10,861,605

 10,864,482

 12,599,438

 8.57
 %

 Lighting Science Group Corporation

 Containers, Packaging & Glass

 Warrants - 0.62 % of Outstanding Equity(21)

 955,680

 -

 0.00
 %

 955,680

 -

 0.00
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 8

 As
of September 30, 2023

 Type

 Par

 Fair

 %

 Lucky Bucks, LLC

 Equity - 180,739 Membership Units (21)

 180,739

 174,393

 1,545,318

 1.05
 %

 Second Out Exit Term Loan
 (SOFR + CSA + 7.50 %, 1.00 % Floor)(20)(24)

 10/2/2029

 1,361,240

 1,334,015

 1,361,240

 0.93
 %

 First Out Exit Term Loan
 (SOFR + CSA + 7.50 %, 1.00 % Floor)(20)(24)

 10/2/2028

 689,541

 626,519

 689,541

 0.47
 %

 2,231,520

 2,134,927

 3,596,099

 2.45
 %

 McKissock Investment Holdings, LLC (dba Colibri)

 (SOFR + CSA + 5.00 %, 0.75 % Floor)(20)(25)

 3/12/2029

 4,924,535

 4,883,570

 4,776,799

 3.25
 %

 4,924,535

 4,883,570

 4,776,799

 3.25
 %

 MFA Financial, Inc.(11)

 Equity - 97,426 Class C Preferred Units(13)(19)

 2,318,487

 1,856,940

 1.26
 %

 2,318,487

 1,856,940

 1.26
 %

 New York Mortgage Trust, Inc.(11)

 Equity - 165,000 Class E Preferred Units(13)(18)

 4,102,076

 3,677,850

 2.50
 %

 4,102,076

 3,677,850

 2.50
 %

 PennyMac Financial Services, Inc.(11)

 Equity - 29,500 Common Units(13)

 29,500

 1,921,275

 1,964,700

 1.34
 %

 29,500

 1,921,275

 1,964,700

 1.34
 %

 PHH Mortgage Corp.

 7.875 % Senior Secured Note(14)

 3/15/2026

 7,686,000

 6,895,720

 6,845,344

 4.66
 %

 7,686,000

 6,895,720

 6,845,344

 4.66
 %

 Point.360

 (LIBOR + 6.00 % PIK)(10)(21)

 7/8/2020

 2,103,712

 -

 0.00
 %

 2,103,712

 -

 0.00
 %

 Power Stop LLC

 (SOFR + CSA + 4.75 %, 0.50 % Floor)(20)(24)

 1/26/2029

 6,919,937

 6,515,010

 5,639,748

 3.84
 %

 6,919,937

 6,515,010

 5,639,748

 3.84
 %

 Rithm Capital Corp.(11)

 Equity - 206,684 Class B Preferred Units(13)(17)

 5,129,170

 4,695,860

 3.20
 %

 5,129,170

 4,695,860

 3.20
 %

 Secure Acquisition Inc. (dba Paragon Films)

 (SOFR + CSA + 5.00 %, 0.50 % Floor)(20)(25)

 3,430,517

 3,418,570

 3,396,212

 2.31
 %

 Senior Secured First Lien Delayed Draw Term Loan (SOFR + CSA + 5.00 %, 0.50 % Floor)(8)(12)(20)(25)

 -

 ( 970
)

 -

 0.00
 %

 3,430,517

 3,417,600

 3,396,212

 2.31
 %

 SS Acquisition, LLC (dba Soccer Shots Franchising)

 Senior Secured First Lien Term Loan (SOFR + CSA + 6.50 %, 1.00 % Floor)(20)(24)

 6,592,976

 4.54
 %

 Senior Secured First Lien Delayed Draw Term Loan (SOFR + CSA + 6.50 %, 1.00 % Floor)(20)(24)

 3,200,000

 3,160,542

 3,200,000

 2.18
 %

 9,866,667

 9,753,518

 9,866,667

 6.72
 %

 SMART Financial Operations, LLC

 Equity - 700,000 Class A Preferred Units(21)

 978,140

 0.67
 %

 978,140

 0.67
 %

 Stancor (dba Industrial Flow Solutions Holdings, LLC)

 Equity - 338,736.11 Class A Units(21)

 308,652

 200,566

 0.14
 %

 308,652

 200,566

 0.14
 %

 Staples, Inc.

 First Lien Term Loan (LIBOR + 4.50 %)(14)

 9/12/2024

 3,692,159

 3,655,672

 3,648,315

 2.48
 %

 3,692,159

 3,655,672

 3,648,315

 2.48
 %

 Tamarix
 Capital Partners II, L.P.(11)

 Fund
 Investment(8)(21)

 N/A

 1,026,818

 792,346

 0.54
 %

 -

 1,026,818

 792,346

 0.54
 %

 Thryv Holdings, Inc.(11)

 Senior Secured First Lien Term Loan (SOFR + CSA + 8.50 %, 1.00 % Floor)(14)(20)(24)

 3/1/2026

 7,656,442

 7,604,838

 7,661,227

 5.21
 %

 7,656,442

 7,604,838

 7,661,227

 5.21
 %

 Velocity Pooling Vehicle, LLC

 Equity - 5,441 Class A Units(21)

 5,441

 302,464

 -

 0.00
 %

 Warrants - 0.65 % of Outstanding Equity(21)

 3/30/2028

 6,506

 361,667

 -

 0.00
 %

 11,947

 664,131

 -

 0.00
 %

 Wingman Holdings, Inc.

 Equity - 350 Common Shares(21)

 -

 0.00
 %

 -

 0.00
 %

 Non-Controlled/Non-Affiliated Investments

 $
 106,630,423

 $
 134,339,121

 $
 125,531,031

 85.41
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 9

 As
of September 30, 2023

 Type

 Par

 Fair

 %

 Affiliated
 Investments: (6)

 1888 Industrial Services, LLC

 Senior Secured First Lien Term Loan A (SOFR + 5.00 % PIK, 1.00 % Floor)(10)(21)(25)

 $
 9,946,741

 $
 9,473,068

 $
 -

 0.00
 %

 Senior Secured First Lien Term Loan C (SOFR + 5.00 %, 1.00 % Floor)(25)

 1,231,932

 1,191,257

 751,479

 0.51
 %

 Revolving Credit Facility (SOFR + 5.00 %, 1.00 % Floor)(12)(25)

 3.15
 %

 Equity - 21,562 Class A Units(21)

 21,562

 -

 -

 -

 15,832,412

 15,296,502

 5,383,656

 3.66
 %

 Black Angus Steakhouses, LLC

 Senior Secured First Lien Delayed Draw Term Loan (SOFR + CSA + 9.00 % PIK, 1.00 % Floor)(20)(24)

 0.60
 %

 Senior Secured First Lien Term Loan (SOFR + CSA + 9.00 % PIK, 1.00 % Floor)(10)(20)(24)

 13,029,115

 7,767,533

 1,459,249

 0.99
 %

 Senior Secured First Lien Super Priority Delayed Draw Term Loan (SOFR + CSA + 9.00 % PIK, 1.00 % Floor)(20)(24)

 1.31
 %

 Equity - 17.92 % Membership Interest(21)

 -

 -

 -

 0.00
 %

 15,825,824

 10,564,242

 4,255,958

 2.90
 %

 FST Holdings Parent, LLC

 Equity - 625,548 Class A Units

 625,548

 10,000,003

 6.81
 %

 625,548

 10,000,003

 6.81
 %

 Maritime Wireless Holdings LLC

 Senior Secured First Lien Term Loan B (SOFR + CSA + 9.00 %, 1.00 % Floor)(20)(24)

 5/31/2027

 7,373,166

 5.10
 %

 Equity - 500,000 Class A Units(21)

 500,000

 10,150,000

 6.91
 %

 12,500,000

 12,373,166

 17,650,000

 12.01
 %

 Affiliated Investments

 $
 44,783,784

 $
 48,233,910

 $
 37,289,617

 25.38
 %

 Type

 Par

 Fair

 %

 Controlled
 Investments: (7)

 LLC

 $

 $

 $

 26.45
 %

 26.45
 %

 Kemmerer Holdings, LLC

 Senior Secured First Lien Term Loan ( 15.00 % PIK)

 6/21/2025

 2.30
 %

 Equity - 31 Common Units(21)

 1,836,157

 9,133,052

 6.22
 %

 3,383,908

 5,220,034

 12,516,929

 8.52
 %

 NVTN LLC

 Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 4.00 % Cash, 1.00 % LIBOR Floor)(8)(22)

 7,309,552

 7,309,885

 7,214,856

 4.91
 %

 Senior Secured First Lien Term Loan B (LIBOR + 9.25 % PIK, 1.00 % LIBOR Floor)(10)(21)

 17,552,420

 13,916,083

 5,037,547

 3.43
 %

 Senior Secured First Lien Term Loan C (LIBOR + 12.00 % PIK, 1.00 % LIBOR Floor)(10)(21)

 11,506,159

 7,570,055

 -

 0.00
 %

 Equity - 1,000 Class A Units(21)

 1,000

 9,550,924

 -

 0.00
 %

 36,369,131

 38,346,947

 12,252,403

 8.34
 %

 Control Investments

 $
 78,623,750

 $
 82,437,692

 $
 63,640,043

 43.31
 %

 Total
 Investments, September 30, 2023

 $
 230,037,957

 $
 265,010,723

 $
 226,460,691

 154.40
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 10

 As
of September 30, 2023

 (1)
 All of our investments are domiciled in the United States. Certain investments also have international operations.

 (2)
 Par amount is presented for debt investments and the amount includes accumulated payment-in-kind ("PIK") interest, as applicable, and is net of repayments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars ("$") unless otherwise noted.

 (3)
 Net unrealized depreciation for U.S. federal income tax purposes totaled $(38,550,032).

 The tax cost basis of investments is $265,010,723 as of September 30, 2023.

 The amortized cost represents the original cost adjusted for the amortization or accretion of premium or discount, as applicable, on debt investments using the effective interest method.

 (4)
 Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy (see Note 4).

 (5)
 Percentage is based on net assets of $146,705,535 as of September 30, 2023.

 (6)
 Affiliated Investments are defined by Investment Company Act of 1940 Act, as amended (the "1940 Act"), as investments in companies in which the Company owns between 5% and 25% outstanding voting securities or is under common control with such portfolio company.

 (7)
 Control Investments are defined by the Investment Company Act of 1940, as amended (the "1940 Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

 (8)
 The investment has an unfunded commitment as of September 30, 2023 (see Note 8), and fair value includes the value of any unfunded commitments. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount on the loan.

 (9)
 The interest rate on this investment is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 5.379% spread on 3/30/2024.

 (10)
 The investment was on non-accrual status as of September 30, 2023.

 (11)
 The investment is not a qualifying asset as defined under Section 55(a) of 1940 Act, in a whole, or in part. As of September 30, 2023, non-qualifying assets represented 20.21% of total assets.

 (12)
 This investment earns 0.50% commitment fee on all unused commitment as of September 30, 2023, and is recorded as a component of interest income on the Consolidated Statements of Operations.

 (13)
 This investment represents a Level 1 security in the ASC 820 table as of September 30, 2023 (see Note 4).

 (14)
 This investment represents a Level 2 security in the ASC 820 table as of September 30, 2023 (see Note 4).

 (15)
 The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 4.743% spread on 9/30/2025.

 (16)
 The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 5.29% spread on 9/27/2027.

 (17)
 The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month LIBOR plus a 5.64% spread on 8/15/2024.

 (18)
 The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 6.429% spread on 1/15/2025.

 (19)
 The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month LIBOR plus a 5.345% spread on 3/31/2025.

 (20)
 Credit Spread Adjustment ("CSA")

 (21)
 Non-income producing security.

 (22)
 The interest rate on these loans is subject to 1 month LIBOR, which as of September 30, 2023 was 5.43%.

 (24)
 The interest rate on these loans is subject to 1 month SOFR, which as of September 30, 2023 was 5.32%.

 (25)
 The interest rate on these loans is subject to 3 month SOFR, which as of September 30, 2023 was 5.27%.

 (26)
 The interest rate on these loans is subject to 6 month SOFR, which as of September 30, 2023 was 5.17%.

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 11

Schedule of Investments

 As

 Type

 Par

 Fair

 % of Net

 Non-Controlled/Non-Affiliated
 Investments:

 Altisource S.A.R.L.(11)

 Senior Secured First Lien Term Loan B (LIBOR + 4.00 %, 1.00 % LIBOR Floor)(14)

 4/3/2024

 $
 6,486,419

 $
 5,825,616

 $
 5,448,591

 4.51
 %

 6,486,419

 5,825,616

 5,448,591

 4.51
 %

 Be Green Packaging, LLC

 Containers, Packaging & Glass

 Equity - 417 Common Units

 416,250

 -

 0.00
 %

 416,250

 -

 0.00
 %

 Boostability Seotowncenter, Inc.

 Equity - 3,434,169.6 Common Units

 66,475

 -

 0.00
 %

 66,475

 -

 0.00
 %

 Chimera Investment Corp.(11)

 Equity - 117,310 Class C Preferred Units(13)(15)

 117,310

 2,884,724

 1,915,672

 1.59
 %

 117,310

 2,884,724

 1,915,672

 1.59
 %

 Property CTL Pass Through Trust

 Certificates(14)

 437,795

 6,314,757

 5,877,398

 4.86
 %

 CPI International, Inc.

 Senior Secured Second Lien Term Loan (LIBOR + 7.25 %, 1.00 % LIBOR Floor)

 7/28/2025

 2,607,062

 2,602,547

 2,607,062

 2.16
 %

 2,607,062

 2,602,547

 2,607,062

 2.16
 %

 DataOnline Corp.

 Senior Secured First Lien Term Loan (LIBOR + 6.25 %, 1.00 % LIBOR Floor)

 4,862,500

 4,862,500

 4,765,250

 3.94
 %

 Revolving Credit Facility (LIBOR + 6.25 %, 1.00 % LIBOR Floor)

 0.58
 %

 5,576,786

 5,576,786

 5,465,250

 4.52
 %

 DirecTV Financing, LLC

 Senior Secured First Lien Term Loan (LIBOR + 5.00 %, 0.75 % LIBOR Floor)(14)

 8/2/2027

 4,550,000

 4,550,000

 4,220,000

 3.49
 %

 4,550,000

 4,550,000

 4,220,000

 3.49
 %

 Dream Finders Homes, LLC

 Preferred Equity ( 8.00 % PIK)

 5,309,341

 5,309,341

 4,950,961

 4.10
 %

 5,309,341

 5,309,341

 4,950,961

 4.10
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 12

 As

 Type

 Par

 Fair

 %

 First Brands Group, LLC

 Senior Secured First Lien Term Loan (SOFR + 5.00 %, 1.00 % SOFR Floor)

 3/30/2027

 3,959,799

 3,959,799

 3,930,101

 3.25
 %

 3,959,799

 3,959,799

 3,930,101

 3.25
 %

 Footprint Holding Company Inc.

 Equity - 150 Common Units

 -

 -

 0.00
 %

 -

 -

 0.00
 %

 Franklin BSP Realty Trust, Inc.(11)

 Equity - 529,914 Common Units(13)

 529,914

 8,754,386

 5,707,174

 4.72
 %

 529,914

 8,754,386

 5,707,174

 4.72
 %

 Global Accessories Group, LLC

 Consumer goods: Non-durable

 Equity - 3.8 % Membership Interest

 151,337

 -

 0.00
 %

 151,337

 -

 0.00
 %

 Great AJAX Corp.(11)

 Equity - 254,922 Common Units(13)

 254,922

 3,333,786

 1,914,464

 1.58
 %

 254,922

 3,333,786

 1,914,464

 1.58
 %

 Innovate Corp.

 8.50 % Senior Secured Notes(14)

 2/1/2026

 2,250,000

 2,252,156

 1,659,375

 1.37
 %

 2,250,000

 2,252,156

 1,659,375

 1.37
 %

 Invesco Mortgage Capital, Inc.(11)

 Equity - 205,000 Class C Preferred Units(13)(16)

 5,035,506

 3,138,550

 2.60
 %

 5,035,506

 3,138,550

 2.60
 %

 JFL-NGS-WCS Partners, LLC

 Senior Secured First Lien Term Loan B (LIBOR + 5.50 %, 1.00 % LIBOR Floor)

 11/12/2026

 885,050

 888,790

 865,137

 0.72
 %

 - 10,000,000 Units

 10,248,798

 8.48
 %

 10,885,050

 10,888,790

 11,113,935

 9.20
 %

 Lighting Science Group Corporation

 Containers, Packaging & Glass

 Warrants - 0.62 % of Outstanding Equity

 955,680

 -

 0.00
 %

 955,680

 -

 0.00
 %

 Lucky Bucks, LLC

 Senior Secured First Lien Term Loan(LIBOR + 5.50 %, 0.75 % LIBOR Floor)

 7/30/2027

 7,218,750

 7,095,116

 6,208,125

 5.14
 %

 7,218,750

 7,095,116

 6,208,125

 5.14
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 13

 As

 Type

 Par

 Fair

 % of Net

 Maritime Wireless Holdings LLC

 Senior Secured First Lien Term Loan A (SOFR + CSA + 9.00 %, 1.00 % SOFR + CSA Floor)(20)

 2/15/2024

 4,900,000

 4,900,000

 4.05
 %

 Senior Secured First Lien Term Loan B (SOFR + CSA + 9.00 %, 1.00 % SOFR + CSA Floor)(20)

 5/31/2027

 7,350,000

 7,350,000

 6.08
 %

 Convertible
 Promissory Note

 4.14
 %

 17,500,000

 17,250,000

 17,250,000

 14.27
 %

 McKissock Investment Holdings, LLC (dba Colibri)

 Senior Secured First Lien Term Loan (SOFR + CSA + 5.00 %, 0.75 % SOFR + CSA Floor)(20)

 3/10/2029

 4,974,999

 4,927,870

 4,875,500

 4.03
 %

 4,974,999

 4,927,870

 4,875,500

 4.03
 %

 MFA Financial, Inc.(11)

 Equity - 97,426 Class C Preferred Units(13)(19)

 2,318,487

 1,722,492

 1.43
 %

 2,318,487

 1,722,492

 1.43
 %

 New York Mortgage Trust, Inc.(11)

 Equity - 165,000 Class E Preferred Units(13)(18)

 4,102,076

 2,953,500

 2.44
 %

 4,102,076

 2,953,500

 2.44
 %

 PennyMac Financial Services, Inc.(11)

 Equity - 81,500 Common Units(13)

 81,500

 5,364,478

 3,496,350

 2.89
 %

 81,500

 5,364,478

 3,496,350

 2.89
 %

 Point.360

 Senior Secured First Lien Term Loan (LIBOR + 6.00 % PIK)(10)

 7/8/2020

 2,103,712

 -

 0.00
 %

 2,103,712

 -

 0.00
 %

 Power Stop LLC

 Senior Secured First Lien Term Loan(LIBOR + 4.75, 0.50 % LIBOR Floor)

 1/26/2029

 4,975,000

 4,930,071

 4,029,750

 3.33
 %

 4,975,000

 4,930,071

 4,029,750

 3.33
 %

 Rithm Capital Corp.(11)

 Equity - 206,684 Class B Preferred Units(13)(17)

 5,129,170

 3,902,194

 3.23
 %

 5,129,170

 3,902,194

 3.23
 %

 Secure Acquisition Inc. (dba Paragon Films)(8)

 Senior Secured First Lien Term Loan(LIBOR + 5.00 %, 0.50 % LIBOR Floor)

 3,465,345

 3,451,574

 3,361,385

 2.78
 %

 Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 5.00 %, 0.50 % LIBOR Floor)(12)

 -

 ( 970
)

 -

 0.00
 %

 3,465,345

 3,450,604

 3,361,385

 2.78
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 14

 As

 Type

 Par

 Fair

 % of Net

 Sendero Drilling Company, LLC

 Unsecured Debt ( 9.00 %)(10)

 8/1/2023

 191,250

 182,081

 -

 0.00
 %

 191,250

 182,081

 -

 0.00
 %

 SS Acquisition, LLC (dba Soccer Shots Franchising)(8)

 Senior Secured First Lien Term Loan (LIBOR + 6.50 %, 1.00 % LIBOR Floor)

 6,575,847

 6,591,667

 5.45
 %

 6,575,847

 6,591,667

 5.45
 %

 SMART Financial Operations, LLC

 Equity - 700,000 Class A Preferred Units

 120,793

 0.10
 %

 120,793

 0.10
 %

 Stancor (dba Industrial Flow Solutions Holdings, LLC)

 Equity - 338,736.11 Class A Units

 308,652

 265,269

 0.22
 %

 308,652

 265,269

 0.22
 %

 Staples, Inc.

 First Lien Term Loan (LIBOR + 4.50 %, 0.0 % LIBOR Floor)(14)

 9/12/2024

 3,730,720

 3,659,706

 3,488,223

 2.89
 %

 3,730,720

 3,659,706

 3,488,223

 2.89
 %

 Thryv Holdings, Inc.(11)

 Senior Secured First Lien Term Loan B (LIBOR + 8.50 %, 1.00 % LIBOR Floor)

 3/1/2026

 6,515,633

 6,406,051

 6,287,583

 5.20
 %

 6,515,633

 6,406,051

 6,287,583

 5.20
 %

 Velocity Pooling Vehicle, LLC

 Equity - 5,441 Class A Units

 5,441

 302,464

 52,342

 0.04
 %

 Warrants - 0.65 % of Outstanding Equity

 3/30/2028

 6,506

 361,667

 62,569

 0.05
 %

 11,947

 664,131

 114,911

 0.09
 %

 Walker Edison Furniture Company LLC

 Consumer goods: Durable

 Equity - 13,044 Common Units

 13,044

 2,114,646

 -

 0.00
 %

 13,044

 2,114,646

 -

 0.00
 %

 Watermill-QMC Midco, Inc.

 Equity - 1.30 % Partnership Interest(9)

 518,283

 518,283

 -

 0.00
 %

 518,283

 518,283

 -

 0.00
 %

 Wingman Holdings, Inc.

 Equity - 350 Common Shares

 -

 0.00
 %

 -

 0.00
 %

 Non-Controlled/Non-Affiliated Investments

 $
 109,151,781

 $
 147,378,917

 $
 122,616,275

 96.58
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 15

 As

 Type

 Par

 Fair

 % of Net

 Affiliated
 Investments: (6)

 1888 Industrial Services, LLC(8)

 Senior Secured First Lien Term Loan A (LIBOR + 5.00 % PIK, 1.00 % LIBOR Floor)(10)

 5/1/2023

 $
 9,946,741

 $
 9,473,068

 $
 -

 0.00
 %

 Senior Secured First Lien Term Loan C(LIBOR + 5.00 %, 1.00 % LIBOR Floor)

 5/1/2023

 1,231,932

 1,191,257

 -

 0.00
 %

 Revolving Credit Facility (LIBOR + 5.00 %, 1.00 % LIBOR Floor)(12)

 5/1/2023

 4,416,555

 4,416,555

 4,151,562

 3.44
 %

 Equity - 21,562 Class A Units

 21,562

 -

 -

 -

 15,616,790

 15,080,880

 4,151,562

 3.44
 %

 Black Angus Steakhouses, LLC(8)

 Senior Secured First Lien Delayed Draw Term Loan (SOFR + CSA + 9.00 %, 1.00 % SOFR Floor)

 0.63
 %

 Senior Secured First Lien Term Loan (SOFR + CSA + 9.00 % PIK, 1.00 % SOFR Floor)(10)

 8,412,596

 7,767,533

 1,547,918

 1.28
 %

 Senior Secured First Lien Super Priority Delayed Draw Term Loan (SOFR + CSA + 9.00 %, 1.00 % SOFR Floor)

 1.24
 %

 Equity - 17.92 % Membership Interest

 -

 -

 -

 0.00
 %

 10,671,525

 10,026,462

 3,806,847

 3.15
 %

 Kemmerer Operations, LLC(8)

 Senior Secured First Lien Term Loan( 15.00 % PIK)

 6/21/2023

 1.97
 %

 Equity - 6.78 Common Units

 962,717

 694,702

 0.57
 %

 2,378,517

 3,341,227

 3,073,212

 2.54
 %

 US Multifamily, LLC

 Equity - 33,300 Preferred Units

 33,300

 2,137,315

 1,282,571

 1.06
 %

 33,300

 2,137,315

 1,282,571

 1.06
 %

 Affiliated Investments

 $
 28,700,132

 $
 30,585,884

 $
 12,314,192

 10.19
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 16

Consolidated Schedule of Investments (continued)

As of September 30, 2022

 Type

 Par

 Fair

 %

 Controlled
 Investments: (7)

 LLC

 $

 $

 $

 39.01
 %

 39.01
 %

 NVTN LLC(8)

 Senior Secured First Lien Delayed Draw Term Loan (LIBOR + 4.00 % Cash, 1.00 % LIBOR Floor)

 7,309,885

 7,309,885

 7,192,927

 5.95
 %

 Senior Secured First Lien Term Loan B (LIBOR + 9.25 % PIK, 1.00 % LIBOR Floor)(10)

 19,561,424

 13,916,082

 3,697,109

 3.06
 %

 Senior Secured First Lien Term Loan C(LIBOR + 12.00 % PIK, 1.00 % LIBOR Floor)(10)

 13,199,860

 7,570,056

 -

 0.00
 %

 Equity - 1,000 Class A Units

 9,551,135

 9,550,924

 -

 0.00
 %

 49,622,304

 38,346,947

 10,890,036

 9.01
 %

 Control Investments

 $
 96,758,450

 $
 85,483,093

 $
 58,026,182

 48.02
 %

 Total
 Investments, September 30, 2022

 $
 234,610,363

 $
 263,447,894

 $
 192,956,649

 154.79
 %

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 17

Consolidated Schedule of Investments (continued)

As of September 30, 2022

 (1)
 All of our investments are domiciled in the United States. Certain investments also have international operations.

 (2)
 Par amount is presented for debt investments and the amount includes accumulated payment-in-kind ("PIK") interest, as applicable, and is net of repayments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars ("$") unless otherwise noted.

 (3)
 Net unrealized depreciation for U.S. federal income tax purposes totaled $(69,642,639).

 The tax cost basis of investments is $262,599,288 as of September 30, 2022.

 (4)
 Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy (see Note 4).

 (5)
 Percentage is based on net assets of $120,845,408 as of September 30, 2022.

 (6)
 Affiliated Investments are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25% outstanding voting securities or is under common control with such portfolio company.

 (7)
 Control Investments are defined by the Investment Company Act of 1940, as amended (the "1940 Act"), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.

 (8)
 The investment has an unfunded commitment as of September 30, 2022 (see Note 8), and fair value includes the value of any unfunded commitments. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount on the loan.

 (9)
 Represents 1.3% partnership interest in Watermill-QMC Partners, LP and Watermill-EMI Partners, LP.

 (10)
 The investment was on non-accrual status as of September 30, 2022.

 (11)
 The investment is not a qualifying asset as defined under Section 55(a) of 1940 Act, in a whole, or in part. As of September 30, 2022, 17.24% of the Company's portfolio investments were non-qualifying assets.

 (12)
 This investment earns 0.50% commitment fee on all unused commitment as of September 30, 2022, and is recorded as a component of interest income on the Consolidated Statements of Operations.

 (13)
 This investment represents a Level 1 security in the ASC 820 table as of September 30, 2022 (see Note 4).

 (14)
 This investment represents a Level 2 security in the ASC 820 table as of September 30, 2022 (see Note 4).

 (15)
 The interest rate on this loan is fixed-to-floating and will shift to 3 month LIBOR plus a 4.743% spread on 9/30/2025.

 (16)
 The interest rate on this loan is fixed-to-floating and will shift to 3 month LIBOR plus a 5.29% spread on 9/27/2027.

 (17)
 The interest rate on this loan is fixed-to-floating and will shift to 3 month LIBOR plus a 5.64% spread on 8/15/2024.

 (18)
 The interest rate on this loan is fixed-to-floating and will shift to 3 month LIBOR plus a 6.429% spread on 1/15/2025.

 (19)
 The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month LIBOR plus a 5.345% spread on 3/31/2025.

 (20)
 Credit Spread Adjustment ("CSA")

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 18

 Notes
to Consolidated Financial Statements

 Note 1.
Organization

 PhenixFIN Corporation ("PhenixFIN." the "Company,"
"we" and "us") is an internally-managed non-diversified closed-end management investment company incorporated
in Delaware that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of
1940, as amended (the "1940 Act"). We completed our initial public offering ("IPO") and commenced operations on
January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a
regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").
On November 18, 2020, the board of directors of the Company approved the adoption of an internalized management structure, effective January
1, 2021. Until close of business on December 31, 2020 we were externally managed and advised by MCC Advisors LLC ("MCC Advisors"),
pursuant to an investment management agreement. MCC Advisors was a wholly owned subsidiary of Medley LLC, which was controlled by Medley
Management Inc. (OTCM: MDLM), a publicly traded asset management firm, which in turn was controlled by Medley Group LLC, an entity wholly
owned by the senior professionals of Medley LLC. We use the term "Medley" to refer collectively to the activities and operations
of Medley Capital LLC, Medley LLC, MDLM, Medley Group LLC, MCC Advisors, associated investment funds and their respective affiliates.
Since January 1, 2021 the Company has been managed pursuant to an internalized management structure.

 The
Company has formed and expects to continue to form certain taxable subsidiaries (the "Taxable Subsidiaries"), which are taxed
as corporations for federal income tax purposes. These Taxable Subsidiaries allow us to, among other things, hold equity securities of
portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a RIC under the Code.

 The
Company's investment objective is to generate current income and capital appreciation. The management team seeks to achieve this
objective primarily through making loans, private equity or other investments in privately-held companies. The Company may also make
debt, equity or other investments in publicly-traded companies. (These investments may also include investments in other BDCs, closed-end
funds or REITs.) We may also pursue other strategic opportunities and invest in other assets or operate other businesses to achieve our
investment objective, such as operating and managing an asset-based lending business. The portfolio generally consists of senior secured
first lien term loans, senior secured second lien term loans, senior secured bonds, preferred equity and common equity. Occasionally,
we will receive warrants or other equity participation features which we believe will have the potential to increase total investment
returns. Our loan and other debt investments are primarily rated below investment grade or are unrated. Investments in below investment
grade securities are considered predominantly speculative with respect to the issuer's capacity to pay interest and repay principal
when due.

 Since
January 4, 2021, the common stock trades on the NASDAQ Global Market under the trading symbol "PFX."

 Sale
of MCC JV

 On
October 8, 2020, the Company, Great American Life Insurance Company ("GALIC"), MCC Senior Loan Strategy JV I LLC (the "MCC
JV"), and an affiliate of Golub Capital LLC ("Golub") entered into a Membership Interest Purchase Agreement pursuant
to which a fund affiliated with and managed by Golub concurrently purchased all of the Company's interest in the MCC JV and all
of GALIC's interest in the MCC JV for a pre-adjusted gross purchase price of $ 156.4 million and an adjusted gross purchase price
(which constitutes the aggregate consideration for the membership interests) of $ 145.3 million (giving effect to adjustments primarily
for principal and interest payments from portfolio companies of MCC JV from July 1, 2020 through October 7, 2020), resulting in net proceeds
(before transaction expenses) of $ 41.0 million and $ 6.6 million for the Company and GALIC, respectively.

 F- 19

 Note 2.
Significant Accounting Policies

 Basis
of Presentation

 The
Company is an investment company following the accounting and reporting guidance in Financial Accounting Standards Board ("FASB")
Accounting Standards Codification 946 ("ASC 946"), Financial Services – Investment Companies. The accompanying consolidated
financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles
("GAAP") and include the consolidated accounts of the Company and its wholly owned subsidiaries PhenixFIN Small Business
Fund, LP ("PhenixFIN Small Business Fund") and PhenixFIN SLF Funding I LLC ("PhenixFIN SLF"), and its wholly
owned Taxable Subsidiaries. All references made to the "Company," "we," and "us" herein include PhenixFIN
Corporation and its consolidated subsidiaries, except as stated otherwise. Additionally, the accompanying consolidated financial statements
of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-K and Article
10 of Regulation S-X of the Securities Act of 1933. Certain prior period information has been reclassified to conform to current period
presentation. These reclassifications have no effect on the Company's financial positions or its results of operations as previously
recorded.

 Use
of Estimates in the Preparation of Financial Statements

 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 consolidated financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 Cash,
Restricted Cash and Cash Equivalents

 The
Company considers cash equivalents to be highly liquid investments with original maturities of three months or less. Cash and cash equivalents
include deposits in a money market account. The Company deposits its cash in financial institutions and, at times, such balances may
be in excess of the Federal Deposit Insurance Corporation insurance limits. As of September 30, 2023 and 2022, we had $ 6.0 million and
$ 22.8 million in cash and cash equivalents, respectively, none of which is restricted.

 Debt
Issuance Costs

 Debt
issuance costs, incurred in connection with any credit facilities and unsecured notes (see Note 5) are deferred and amortized over the
life of the respective credit facility or instrument. Debt issuance costs related to any credit facilities and unsecured notes are presented
net against the outstanding debt balance on the Consolidated Statements of Assets and Liabilities.

 Indemnification

 In
the normal course of business, the Company enters into contractual agreements that provide general indemnifications against losses, costs,
claims and liabilities arising from the performance of individual obligations under such agreements. The Company has had no material
claims or payments pursuant to such agreements. The Company's individual 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. However, based on management's
experience, the Company expects the risk of loss to be remote.

 Revenue
Recognition

income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discounts and premiums to par
value on investments purchased are accreted and amortized into interest income over the life of the respective investment. Loan origination
fees, original issue discount ("OID") and market discounts or premiums are capitalized and amortized into interest income
using the effective interest method or straight-line method, as applicable.

 F- 20

 Note 2.
Significant Accounting Policies (continued)

 The
Company holds debt investments in its portfolio that contain a payment-in-kind ("PIK") interest provision. PIK interest,
which represents contractually deferred interest added to the investment balance that is generally due at maturity, is recorded on the
accrual basis to the extent such amounts are expected to be collected. PIK interest is not accrued if the Company does not expect the
issuer to be able to pay all principal and interest when due. For the years ended September 30, 2023, 2022 and 2021, the Company earned
approximately $ 1.5 million, $ 0.8 million, $ 0.9 million in PIK interest, respectively.

 Amendment
and transaction break-up fees associated with investments in portfolio companies are recognized as income when we become entitled to
such fees. Prepayment penalties received by the Company for debt instruments paid back to the Company prior to the maturity date are
recorded as income upon repayment of debt. Administrative agent fees received by the Company are capitalized as deferred revenue and
recorded as fee income when the services are rendered. For the years ended September 30, 2023, 2022 and 2021, fee income was approximately
$ 0.3 million, $ 0.4 million and $ 2.6 million, respectively (see Note 9).

 Investment transactions are accounted for on a
trade date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition
and the amortized cost basis of investment using the specific identification method, without regard to unrealized gains or losses previously
recognized. No losses relating to restructuring transactions occurred during the years ended September 30, 2023, 2022 and 2021. The Company
reports changes in fair value of investments as a component of the net unrealized appreciation/(depreciation) on investments in the Consolidated
Statements of Operations.

 Management
reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest
will be collected for possible placement on management's designation of non-accrual status. Interest receivable is analyzed regularly
and may be reserved against when deemed not collectible. Interest payments received on non-accrual loans may be recognized as income
or applied to principal depending upon management's judgment regarding collectability. Non-accrual loans are restored to accrual
status when past due principal and interest is paid and, in management's judgment, are likely to remain current, although we may
make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. At September 30,
2023, certain investments in four portfolio companies held by the Company were on non-accrual status with a combined fair value of approximately
$ 6.5 million, or 2.9 % of the fair value of our portfolio. At September 30, 2022, certain investments in five portfolio companies held
by the Company were on non-accrual status with a combined fair value of approximately $ 5.2 million, or 2.7 % of the fair value of our
portfolio.

Classification

 The
Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, we would be deemed to "control"
a portfolio company if we owned more than 25 % of its outstanding voting securities and/or had the power to exercise control over the
management or policies of such portfolio company. We refer to such investments in portfolio companies that we "control" as
"Control Investments." Under the 1940 Act, we would be deemed to be an "Affiliated Person" of a portfolio company
if we own between 5 % and 25 % of the portfolio company's outstanding voting securities or we are under common control with such
portfolio company. We refer to such investments in Affiliated Persons as "Affiliated Investments."

 Valuation
of Investments

 The
Company applies fair value accounting to all of its financial instruments in accordance with the 1940 Act and ASC Topic 820 - Fair Value
Measurements and Disclosures ("ASC 820"). ASC 820 defines fair value, establishes a framework used to measure fair value
and requires disclosures for fair value measurements. In accordance with ASC 820, the Company has categorized its financial instruments
carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy as discussed in Note
4. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity specific measure.
Therefore, when market assumptions are not readily available, the Company's own assumptions are set to reflect those that management
believes market participants would use in pricing the financial instrument at the measurement date.

 F- 21

 Note
2. Significant Accounting Policies (continued)

for which market quotations are readily available are valued at such market quotations, which are generally obtained from an independent
pricing service or multiple broker-dealers or market makers. We weight the use of third-party broker quotations, if any, in determining
fair value based on our understanding of the level of actual transactions used by the broker to develop the quote and whether the quote
was an indicative price or binding offer. However, debt investments with remaining maturities within 60 days that are not credit impaired
are valued at cost plus accreted discount, or minus amortized premium, which approximates fair value. Investments for which market quotations
are not readily available are valued at fair value as determined by our Chief Financial Officer, the Company's Valuation Designee,
based upon input from management and third-party valuation firms. Because these investments are illiquid and because there may not be
any directly comparable companies whose financial instruments have observable market values, these loans are valued using a fundamental
valuation methodology, consistent with traditional asset pricing standards, that is objective and consistently applied across all loans
and through time.

in investment funds are valued at fair value. Fair values are generally determined utilizing the NAV supplied by, or on behalf of, management
of each investment fund, which is net of management and incentive fees or allocations charged by the investment fund and is in accordance
with the "practical expedient", as defined by FASB Accounting Standards Update ("ASU") 2009-12, Investments
in Certain Entities that Calculate Net Asset Value per Share. NAVs received by, or on behalf of, management of each investment fund
are based on the fair value of the investment funds' underlying investments in accordance with policies established by management
of each investment fund, as described in each of their financial statements and offering memorandum. If the Company is in the process
of the sale of an investment fund, fair value will be determined by actual or estimated sale proceeds.

 The
methodologies utilized by the Company in estimating the fair value of its investments categorized as Level 3 generally fall into the
following two categories:

 The "Market Approach"
 uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar)
 assets, liabilities, or a group of assets and liabilities, such as a business.

 The "Income Approach"
 converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. When the
 Income Approach is used, the fair value measurement reflects current market expectations about those future amounts.

 The
Company has engaged third-party valuation firms (the "Valuation Firms") to assist it and its Valuation Designee (the Chief
Financial Officer) in the valuation of its portfolio investments. The valuation reports generated by the Valuation Firms consider the
evaluation of financing and sale transactions with third parties, expected cash flows and market-based information, including comparable
transactions, performance multiples, and movement in yields of debt instruments, among other factors. The Company uses a market yield
analysis under the Income Approach or an enterprise model of valuation under the Market Approach, or a combination thereof. In applying
the market yield analysis, the value of the Company's loans are determined based upon inputs such as the coupon rate, current market
yield, interest rate spreads of similar securities, the stated value of the loan, and the length to maturity. In applying the enterprise
model, the Company uses a waterfall analysis, which takes into account the specific capital structure of the borrower and the related
seniority of the instruments within the borrower's capital structure. To estimate the enterprise value of the portfolio company,
we weigh some or all of the traditional market valuation methods and factors based on the individual circumstances of the portfolio company
in order to estimate the enterprise value.

 The
methodologies and information that the Company utilizes when applying the Market Approach for performing investments include, among other
things:

 valuations of comparable
 public companies ("Guideline Comparable Approach");

 recent sales of private
 and public comparable companies ("Guideline Comparable Approach");

 recent acquisition prices
 of the company, debt securities or equity securities ("Recent Arms-Length Transaction");

 external valuations of
 the portfolio company, offers from third parties to buy the company ("Estimated Sales Proceeds Approach");

 subsequent
 sales made by the Company of its investments ("Expected Sales Proceeds Approach"); and

 estimating the value to
 potential buyers.

 F- 22

 Note
2. Significant Accounting Policies (continued)

 The
methodologies and information that the Company utilizes when applying the Income Approach for performing investments include:

 discounting the forecasted
 cash flows of the portfolio company or securities (Discounted Cash Flow ("DCF") Approach); and

 Black-Scholes model or
 simulation models or a combination thereof (Income Approach - Option Model) with respect to the valuation of warrants.

 For
non-performing investments, we may estimate the liquidation or collateral value of the portfolio company's assets and liabilities
using an expected recovery model (Market Approach - Expected Recovery Analysis or Estimated Liquidation Proceeds).

 We
undertake a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available,
as described below:

 our quarterly valuation
 process generally begins with each portfolio investment being initially valued by a Valuation Firm;

 Available third-party market
 data will be reviewed by Company personnel designated by the Valuation Designee ("Fair Value Personnel") and the Valuation
 Firm.

 Available portfolio company
 data and general industry data are then reviewed by the Fair Value Personnel.

 Preliminary valuation conclusions
 are then documented and discussed with the Fair Value Personnel.

 The Valuation Designee
 then determines the fair value of each investment in the Company's portfolio in good faith based on such discussions, the Company's
 Valuation Policy and the Valuation Firms' final estimated valuations.

 The Valuation Designee's
 report is then presented to the Board of Directors and the Audit Committee.

 Due
to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair
value of our investments may differ from the values that would have been used had a readily available market value existed for such investments,
and the differences could be material. In addition, changes in the market environment (including the impact of pandemics, wars or other
market events on financial markets), portfolio company performance, and other events may occur over the lives of the investments that
may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned.

of Financial Instruments

 The
carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts payable and accrued expenses,
approximate fair value due to their short-term nature. The carrying amounts and fair values of our long-term obligations are discussed
in Note 5.

 Federal
Income Taxes

 The
Company has elected, and intends to qualify annually, to be treated as a RIC under Subchapter M of the Code. In order to continue to
qualify as a RIC and be eligible for tax treatment under Subchapter M of the Code, among other things, the Company is required to meet
certain source of income and asset diversification requirements and timely distribute to its stockholders at least 90 % of the sum of
investment company taxable income ("ICTI"), as defined by the Code, including PIK interest, and net tax exempt interest income
(which is the excess of gross tax exempt interest income over certain disallowed deductions) for each taxable year. Depending on the
level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of current year dividend distributions into
the next tax year. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior
to filing the final tax return related to the year which generated such ICTI.

 F- 23

 Note 2.
Significant Accounting Policies (continued)

 The
Company is subject to a nondeductible U.S. federal excise tax of 4 % on undistributed income if it does not distribute at least 98 % of
its ordinary income in any calendar year and 98.2 % of its capital gain net income for each one-year period ending on October 31 of such
calendar year and any income realized, but not distributed, in preceding years and on which it did not pay federal income tax. To the
extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year
dividend distributions for excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable
income is earned. There was no provision for federal excise tax for the calendar year ended 2022 accrued at September 30, 2023, for the
calendar year ended 2021 accrued at September 30, 2022 and the calendar year ended 2020 accrued at September 30, 2021.

 The
Company's Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the unrealized gains generated
by the investments held by the Taxable Subsidiaries. As of September 30, 2023 and 2022, the Company did not record a deferred tax liability
on the Consolidated Statements of Assets and Liabilities. The change in provision for deferred taxes is included as a component of net
realized and unrealized gain/(loss) on investments in the Consolidated Statements of Operations. For the years ended September 30, 2023,
2022 and 2021, the Company did not record a change in provision for deferred taxes on the unrealized (appreciation)/depreciation on investments.

 As of September 30, 2023 and 2022, the Company
had a deferred tax asset of $ 23.1 million and $ 26.2 million, respectively, consisting primarily of net operating losses and net unrealized
losses on the investments held within its Taxable Subsidiaries. As of September 30, 2023 and 2022, the Company has booked a valuation
allowance of $ 23.1 million and $ 26.2 million, respectively, against its deferred tax asset.

 ICTI
generally differs from net investment income for financial reporting purposes due to temporary and permanent differences in the recognition
of income and expenses. The Company may be required to recognize ICTI in certain circumstances in which it does not receive cash. For
example, if the Company holds debt obligations that are treated under applicable tax rules as having original issue discount, the Company
must include in ICTI each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether
cash representing such income is received by the Company in the same taxable year. The Company may also have to include in ICTI other
amounts that it has not yet received in cash, such as 1) PIK interest income and 2) interest income from investments that have been classified
as non-accrual for financial reporting purposes. Interest income on non-accrual investments is not recognized for financial reporting
purposes, but generally is recognized in ICTI. Because any original issue discount or other amounts accrued will be included in the Company's
ICTI for the year of accrual, the Company may be required to make a distribution to its stockholders in order to satisfy the minimum
distribution requirements, even though the Company will not have received and may not ever receive any corresponding cash amount. ICTI
also excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they
are realized.

 Permanent
differences between ICTI and net investment income for financial reporting purposes are reclassified among capital accounts in the financial
statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary
income for tax purposes. During the years ended September 30, 2023, 2022 and 2021, the Company reclassified for book purposes amounts
arising from permanent book/tax differences related to the different tax treatment of net operating losses and investments in wholly-owned
subsidiaries as follows:

 For the Years Ended September 30

 2023

 2022

 2021

 Capital in excess of par value

 $
 20,468,622

 $
 3,276,372

 $
 24,688,262

 Accumulated undistributed net investment income/(loss)

 ( 20,468,622
)

 ( 3,276,372
)

 ( 19,047,396
)

 Accumulated net realized gain/(loss) from investments

 -

 -

 ( 5,640,866
)

 F- 24

 Note
2. Significant Accounting Policies (continued)

 For
income tax purposes, distributions paid to stockholders are reported as ordinary income, return of capital, long term capital gains or
a combination thereof. The tax character of distributions paid for the years ended September 30, 2023, 2022 and 2021 were as follows:

 For
 the Years Ended September 30

 2023

 2022

 2021

 Ordinary income

 $
 -

 $
 265,798

 $
 -

 Distributions of long term capital gains

 -

 -

 -

 Return of capital

 -

 -

 -

 Distributions on a tax
 basis

 $
 -

 $
 265,798

 $
 -

 For federal income tax purposes, the cost of investments owned at September
30, 2023, 2022 and 2021 were approximately $ 264.1 million, $ 262.6 million and $ 206.9 million, respectively.

 At
September 30, 2023, 2022 and 2021, the components of distributable earnings/(accumulated deficits) on a tax basis detailed below differ
from the amounts reflected in the Company's Consolidated Statements of Assets and Liabilities by temporary and other book/tax differences,
primarily relating to the tax treatment of certain fee income and organizational expenses, as follows:

 For the Years Ended September 30

 2023

 2022

 2021

 Undistributed ordinary income

 $
 2,389,267

 $
 -

 $
 265,798

 Accumulated capital and other losses (1)

 ( 512,809,528
)

 ( 485,107,934
)

 ( 490,032,788
)

 Other temporary differences

 ( 57,438
)

 ( 73,646
)

 ( 89,856
)

 Unrealized appreciation/(depreciation)

 ( 37,631,079
)

 ( 69,376,916
)

 ( 55,318,332
)

 Components of distributable earnings/(accumulated deficits) at year end

 $
 ( 548,108,778
)

 ( 554,558,496
)

 $
 ( 545,175,178
)

 (1)
 Under the Regulated Investment Company Modernization Act of 2010, net
capital losses recognized for tax years beginning after December 22, 2010, may be carried forward indefinitely, and their character is
retained as short-term or long-term losses. As of September 30, 2023, the Company had a long-term capital loss carryforward available
to offset future realized capital gains of $ 509,966,576 and a short-term capital loss carryforward of $ 2,842,952

 The
Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes ("ASC 740"). ASC 740 provides guidelines
for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740 requires the
evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether
the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions deemed to
meet a "more-likely-than-not" threshold would be recorded as a tax benefit or expense in the current period. The Company
recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Consolidated Statements
of Operations. There were no material uncertain income tax positions at September 30, 2023. Although we file federal and state tax
returns, our major tax jurisdiction is federal. The Company's federal and state tax returns for the prior three fiscal years remain
open, subject to examination by the Internal Revenue Service and applicable state tax authorities.

 Segments

 The
Company invests in various industries. The Company separately evaluates the performance of each of its investment relationships. However,
because each of these investment relationships has similar business and economic characteristics, they have been aggregated into a single
investment segment. All applicable segment disclosures are included in or can be derived from the Company's financial statements.
See Note 3 for further information.

 F- 25

 Note 2.
Significant Accounting Policies (continued)

 Company
Investment Risk, Concentration of Credit Risk, and Liquidity Risk

 The
Company has broad discretion in making investments. Investments generally consist of debt instruments that may be affected by business,
financial market or legal uncertainties. Prices of investments may be volatile, and a variety of factors that are inherently difficult
to predict, such as domestic or international economic and political developments, may significantly affect the results of the Company's
activities and the value of its investments. In addition, the value of the Company's portfolio may fluctuate as the general level
of interest rates fluctuate.

 The
value of the Company's investments in loans may be detrimentally affected to the extent, among other things, that a borrower defaults
on its obligations, there is insufficient collateral and/or there are extensive legal and other costs incurred in collecting on a defaulted
loan, observable secondary or primary market yields for similar instruments issued by comparable companies increase materially or risk
premiums required in the market between smaller companies, such as our borrowers, and those for which market yields are observable increase
materially.

 The
Company's assets may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly
traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore,
the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments
accurately.

 Note 3.

 The
composition of our investments as of September 30, 2023 as a percentage of our total portfolio, at amortized cost and fair value were
as follows (dollars in thousands):

 Amortized Cost

 $
 139,103

 52.5
 %

 $
 103,004

 45.6
 %

 9,512

 3.6

 8,922

 3.9

 Fund Investment

 1,027

 0.4

 0.3

 115,369

 43.5

 113,743

 50.2

 Total Investments

 $
 265,011

 100.0
 %

 $

 100.0
 %

 The
composition of our investments as of September 30, 2022 as a percentage of our total portfolio, at amortized cost and fair value were
as follows (dollars in thousands):

 Amortized Cost

 Fair
 Value

 Senior Secured First Lien Term
 Loans

 $
 128,482

 48.7
 %

 $
 88,248

 45.6
 %

 Senior Secured Second Lien Term Loans

 2,603

 1.0

 2,607

 1.4

 2,252

 0.9

 1,659

 0.9

 Unsecured Debt

 0.1

 -

 -

 129,929

 49.3

 100,443

 52.1

 Total

 $
 263,448

 100.0
 %

 $

 100.0
 %

 In
connection with certain of the Company's investments, the Company receives warrants that are obtained for the objective of increasing
the total investment returns and are not held for hedging purposes. At September 30, 2023 and 2022, the total fair value of warrants
was $ 206.5 thousand and $ 62.6 thousand, respectively, and were included in investments at fair value on the Consolidated Statements of
Assets and Liabilities. During the year ended September 30, 2023, the Company acquired additional warrants in one existing portfolio
company. During the year ended September 30, 2022, the Company did not acquire any additional warrants in an existing portfolio
company. During the year ended September 30, 2021, the Company acquired additional warrants in one existing portfolio company.

 Total
unrealized depreciation related to warrants for the years ended September 30, 2023, 2022 and 2021 was $ 143.9 thousand, $ 299.1 thousand
and $ 981.4 thousand, respectively, and was recorded on the Consolidated Statements of Operations as net unrealized appreciation/(depreciation)
on investments. The warrants are received in connection with individual investments and are not subject to master netting arrangements.

 F- 26

 Note
3. Investments (continued)

 The
following table shows the portfolio composition by industry grouping at fair value at September 30, 2023 (dollars in thousands):

 Fair
 Value

 $
 47,083

 20.7
 %

 43,755

 19.3

 34,158

 15.1

 18,292

 8.1

 15,472

 6.8

 14,676

 6.5

 12,517

 5.5

 11,665

 5.2

 9,520

 4.2

 6,920

 3.1

 5,384

 2.4

 3,396

 1.5

 2,645

 1.2

 0.4

 Total

 $

 100.0
 %

 The
following table shows the portfolio composition by industry grouping at fair value at September 30, 2022 (dollars in thousands):

 $
 52,851

 27.5
 %

 31,947

 16.7

 31,910

 16.5

 21,243

 11.0

 17,724

 9.1

 8,075

 4.2

 6,208

 3.2

 5,465

 2.8

 4,220

 2.2

 4,152

 2.2

 3,361

 1.7

 3,073

 1.6

 2,607

 1.4

 0.1

 Total

 $

 100.0
 %

 The
Company invests in portfolio companies principally located in the United States. The geographic composition is determined by the location
of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company's
business.

 The
following table shows the portfolio composition by geographic location at fair value at September 30, 2023 (dollars in thousands):

 Fair
 Value

 Northeast

 $
 92,081

 40.7
 %

 Southeast

 60,116

 26.5

 Midwest

 32,782

 14.5

 West

 25,608

 11.3

 Southwest

 7,661

 3.4

 Mid-Atlantic

 0.1

 International

 8,012

 3.5

 Total

 $

 100.0
 %

 The
following table shows the portfolio composition by geographic location at fair value at September 30, 2022 (dollars in thousands):

 Fair
 Value

 Northeast

 $
 92,939

 48.2
 %

 Southeast

 51,797

 26.8

 West

 20,196

 10.5

 Midwest

 16,023

 8.3

 Southwest

 6,288

 3.3

 Mid-Atlantic

 0.1

 International

 5,449

 2.8

 Total

 $

 100.0
 %

 F- 27

 Note 3.
Investments (continued)

 Transactions
With Affiliated/Controlled Companies

 The
Company had investments in portfolio companies designated as Affiliated Investments and Controlled Investments under the 1940 Act. Transactions
with Affiliated Investments and Controlled Investments during the years ended September 30, 2023 and 2022 were as follows:

 Name
 of

 Investment (1)(2)

 Type

 Fair
 September 30, 2022

 Purchases/ (Sales)

 of or Advances/
 (Distributions)

 Transfers
 In/(Out)
 of Affiliates

 Unrealized

 Fair
 September 30, 2023

 Earned

 Affiliated

 1888

 $
 -

 $
 -

 $
 -

 $
 751,479

 $
 -

 $
 751,479

 $
 84,559

 Revolving

 4,151,562

 215,622

 -

 264,993

 -

 553,233

 Black

 116,820

 -

 -

 -

 232,614

 1,547,918

 -

 -

 ( 88,669
)

 -

 1,459,249

 159,780

 Secured First Lien Super Priority Delayed Draw Term Loan

 420,960

 -

 -

 -

 360,670

 FST
 Holdings Parent, LLC

 $
 -

 $

 $
 -

 $

 $
 -

 $
 10,000,003

 $
 121,385

 Operations, LLC

 $
 -

 ( 2,378,510
)

 -

 -

 -

 89,743

 694,702

 $
 -

 ( 962,717
)

 268,015

 -

 -

 -

 Maritime
 Wireless Holdings LLC

 Secured First Lien Term Loan A

 $
 -

 $
 ( 5,000,704
)

 $
 4,900,000

 $
 -

 $
 100,704

 $
 -

 $
 218,788

 $
 -

 $
 23,166

 $
 7,350,000

 $
 126,834

 $
 -

 $

 $
 565,377

 $
 -

 $
 -

 $

 $
 5,150,000

 $
 -

 $
 10,150,000

 $
 -

 US
 Multifamily, LLC

 1,282,571

 ( 1,018,344
)

 -

 854,744

 ( 1,118,971
)

 -

 -

 Total
 Affiliated Investments

 $
 12,314,192

 $
 4,757,520

 $
 13,908,773

 $
 7,327,399

 $
 ( 1,018,267
)

 $
 37,289,617

 $
 2,386,149

 Name
 of

 Investment (1)(2)

 Type

 Fair

 September 30, 2022

 Purchases/ (Sales)

 of or Advances/

 (Distributions)

 Transfers
 In/(Out)
 of Controlled

 Unrealized

 Fair
 September 30, 2023

 Earned

 Controlled

 LLC

 $

 $
 ( 8,265,435
)

 $
 -

 $
 -

 -

 $

 $
 3,716,676

 Operations, LLC

 -

 981,911

 -

 23,456

 557,981

 -

 873,440

 962,717

 7,296,895

 -

 9,133,052

 -

 NVTN
 LLC

 7,192,927

 -

 -

 21,929

 -

 7,214,856

 667,312

 3,697,109

 -

 -

 1,340,438

 -

 5,037,547

 -

 Total
 Controlled Investments

 $
 58,026,182

 $
 ( 6,410,084
)

 $
 3,341,227

 $
 8,659,262

 $
 23,456

 $
 63,640,043

 $
 4,941,969

 F- 28

 Note 3. Investments (continued)

 Name of

 Investment (1)(2)

 Type

 Fair
 2021

 Purchases/ (Sales)

 of or Advances/
 (Distributions)

 Transfers In/(Out)
 of Affiliates

 Unrealized

 Fair
 Value at September 30,
 2022

 Earned

 Affiliated

 1888

 $
 -

 $
 -

 $
 -

 $
 19,468,870

 $
 ( 19,468,870
)

 $
 -

 $
 -

 24,639

 -

 -

 ( 24,639
)

 -

 -

 79,084

 Revolving

 3,554,069

 862,486

 -

 ( 264,993
)

 -

 4,151,562

 235,755

 -

 -

 -

 -

 -

 -

 -

 Black

 -

 -

 -

 -

 79,375

 2,279,814

 -

 -

 ( 731,896
)

 -

 1,547,918

 -

 Secured First Lien Super Priority DDTL

 -

 -

 -

 -

 156,885

 -

 -

 -

 -

 -

 -

 -

 Caddo
 Investors Holdings 1 LLC

 3,454,786

 ( 3,448,219
)

 -

 ( 925,960
)

 919,393

 -

 -

 Dynamic
 Energy Services International LLC

 -

 ( 4,910,671
)

 -

 7,328,568

 ( 2,417,897
)

 -

 JFL-NGS

 26,862,813

 ( 26,807,520
)

 -

 ( 26,805,513
)

 26,750,220

 -

 -

 JFL-WCS

 8,099,949

 ( 8,084,639
)

 -

 ( 7,970,361
)

 7,955,051

 -

 -

 Operations, LLC

 2,360,547

 ( 3,475
)

 -

 21,438

 -

 368,331

 162,441

 ( 163,915
)

 -

 1,474

 -

 -

 6,601

 553,746

 -

 -

 140,956

 -

 694,702

 -

 Path
 Medical, LLC

 Secured First Lien Term Loan A

 2,249,835

 ( 2,460,448
)

 -

 3,556,057

 ( 3,345,444
)

 -

 ( 1,693
)

 -

 -

 -

 6,483,741

 ( 6,483,741
)

 -

 ( 2,974
)

 -

 -

 -

 499,751

 ( 499,751
)

 -

 -

 URT
 Acquisition Holdings Corporation

 920,000

 ( 1,000,000
)

 -

 ( 920,000
)

 1,000,000

 -

 -

 US
 Multifamily, LLC

 2,577,416

 ( 2,577,418
)

 -

 -

 -

 93,338

 2,236,261

 ( 1,192,685
)

 -

 238,995

 -

 1,282,571

 -

 Total
 Affiliated Investments

 $
 57,595,245

 $
 ( 49,786,504
)

 $
 -

 $
 96,490

 $
 4,408,961

 $
 12,314,192

 $
 1,014,714

 F- 29

 Note 3. Investments (continued)

 Name of

 Investment (1)(2)

 Type

 Fair
 2021

 Purchases/

 (Sales) of or
 Advances/
 (Distributions)

 Transfers
 In/(Out) of
 Affiliates

 Unrealized

 Fair
 Value
 at
 2022

 Earned

 Controlled Investments

 LLC

 $
 2,500,000

 $
 44,636,146

 $
 -

 $
 -

 $
 -

 $

 $
 3,505,220

 NVTN
 LLC

 6,414,860

 744,010

 -

 34,057

 -

 7,192,927

 1,124,346

 Super
 Priority Senior Secured First Lien Term Loan

 977,000

 ( 1,000,000
)

 -

 21,150

 1,850

 -

 173,822

 -

 1,610,990

 -

 2,086,119

 -

 3,697,109

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 -

 Total
 Controlled Investments

 $
 9,891,860

 $
 45,991,146

 $
 -

 $
 2,141,326

 $
 1,850

 $
 58,026,182

 $
 4,803,388

 (1)
 The par amount and additional detail are shown in the Consolidated Schedules of Investments.

 (2)
 Securities with a zero value at the beginning and end of the period, and those that had no transaction activity were excluded from the roll forward.

 Purchases/(sales)
of or advances to/(distributions) from Affiliated Investments and Controlled Investments represent the proceeds from sales and settlements
of investments, purchases, originations and participations, investment increases due to PIK interest as well as net amortization of premium/(discount)
on investments and are included in the purchases and sales presented on the Consolidated Statements of Cash Flows for the years ended
September 30, 2023, 2022 and 2021. Transfers in/(out) of Affiliated Investments and Controlled Investments represent the fair value for
the month an investment became or was removed as an Affiliated Investment or a Controlled Investment. Income received from Affiliated
Investments and Controlled Investments is included in total investment income on the Consolidated Statements of Operations for the years
ended September 30, 2023, 2022 and 2021.

 Unconsolidated
Significant Subsidiaries

 In
accordance with the SEC's Regulation S-X and GAAP, the Company evaluated and determined that it had one subsidiary, FlexFIN, LLC,
that is deemed to be a "significant subsidiary" as of September 30, 2023. In accordance with Rule 3-09, separate audited
financial statements of FlexFIN, LLC for the year ended September 30, 2023 are being filed herewith as Exhibit 99.2.

 Note 4.
Fair Value Measurements

 The
Company follows ASC 820 for measuring the fair value of portfolio investments. Fair value is the price that would be received in the
sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where
available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable
prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation
and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments' complexity.
The Company's fair value analysis includes an analysis of the value of any unfunded loan commitments. Financial investments recorded
at fair value in the consolidated financial statements are categorized for disclosure purposes based upon the level of judgment associated
with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation
of the investment as of the measurement date. Investments which are valued using NAV as a practical expedient are excluded from this
hierarchy, and certain prior period amounts have been reclassified to conform to the current period presentation. The three levels are
defined below:

 Level
 1 - Valuations based on quoted prices in active markets for identical assets or liabilities at the measurement date.

 Level
 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly
 or indirectly.

 Level
 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 In
addition to using the above inputs in investment valuations, the Company continues to employ a valuation policy approved by the board
of directors that is consistent with ASC 820 (see Note 2). Consistent with our valuation policy, we evaluate the source of inputs, including
any markets in which our investments are trading, in determining fair value.

 F- 30

 Note 4. Fair Value Measurements (continued)

 The
following table presents the fair value measurements of our investments, by major class according to the fair value hierarchy, as of
September 30, 2023 (dollars in thousands):

 Fair Value Hierarchy as of September 30, 2023

 Investments:

 Level 1

 Level 2

 Level 3

 Total

 $
 -

 $
 20,505

 $
 82,499

 $
 103,004

 -

 8,922

 -

 8,922

 Unsecured Debt

 -

 -

 -

 -

 24,709

 6,217

 82,817

 113,743

 Total

 $
 24,709

 $
 35,644

 $
 165,316

 $
 225,669

 Investments measured at net asset value (1)

 Total Investments, at fair value

 $

 (1)
 Certain investments that are measured at fair value using NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the Consolidated Statements of Assets and Liabilities.

 The
following table presents the fair value measurements of our investments, by major class according to the fair value hierarchy, as of
September 30, 2022 (dollars in thousands):

 Fair
 Value Hierarchy as of September 30, 2022

 Investments:

 Level

 Level

 Level

 Total

 Senior Secured First Lien Term
 Loans

 $
 -

 $
 13,996

 $
 74,252

 $
 88,248

 Senior Secured Second Lien Term Loans

 -

 -

 2,607

 2,607

 -

 1,659

 -

 1,659

 Unsecured Debt

 -

 -

 -

 -

 24,750

 5,877

 69,816

 100,443

 Total

 $
 24,750

 $
 21,532

 $
 146,675

 $

 The
following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended
September 30, 2023 (dollars in thousands):

 Senior Secured Second Lien Term Loans

 Debt

 Equities/ Warrants

 Total

 Balance as of September 30, 2022

 $
 74,252

 $
 2,607

 $
 -

 $
 69,816

 $
 146,675

 Purchases and other adjustments to cost

 23,481

 -

 -

 29,571

 53,052

 Sales (including repayments or maturities)

 ( 12,840
)

 ( 2,607
)

 ( 191
)

 ( 33,213
)

 ( 48,851
)

 Net realized gains/(losses) from investments

)

 ( 9,574
)

 ( 9,398
)

 Net unrealized gains/(losses)

 ( 2,556
)

 ( 5
)

 26,217

 23,838

 Transfer in/(out)

 -

 -

 -

 -

 -

 Balance as of September 30, 2023

 $
 82,499

 $
 -

 $
 -

 $
 82,817

 $
 165,316

 The
following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended
September 30, 2022 (dollars in thousands):

 Secured
 First Lien
 Term Loans

 Secured
 Second Lien
 Term Loans

 Secured
 Debt

 Debt

 Equities/

 Warrants (1)

 Total

 Balance
 as of September 30, 2021

 $
 61,934

 $
 2,490

 $
 2,500

 $
 -

 $
 48,889

 $
 115,813

 Purchases
 and other adjustments to cost

 59,179

 -

 -

 -

 71,111

 130,290

 Sales

 ( 58,333
)

 -

 -

 ( 1,280
)

 ( 52,938
)

 ( 112,551
)

 Net
 realized gains/(losses) from investments

 ( 23,917
)

 -

 -

 ( 99
)

 36,101

 12,085

 Net
 unrealized gains/(losses)

 35,189

 (2,500
) (1)

 1,379

 (33,347
) (1)

 Transfer
 in/(out)

 -

 -

 -

 -

 Balance
 as of September 30, 2022

 $
 74,252

 $
 2,607

 $
 -

 $
 -

 $
 69,816

 $
 146,675

 (1)
 FlexFIN, LLC was reclassed as an Equity from Secured Debt during the quarter ended December 31, 2021.

 F- 31

 Note 4. Fair Value Measurements (continued)

 Net change in unrealized gain (loss) for the years ended September
30, 2023 and 2022 included in earnings related to investments still held as of September 30, 2023 and 2022 was approximately $ 26.5 million
and $( 2.5) million, respectively.

 Purchases
and other adjustments to cost include purchases of new investments at cost, effects of refinancing/restructuring, accretion/amortization
of income from discount/premium on debt securities, and PIK.

 Sales
represent net proceeds received from investments sold, including any repayments or maturities.

 A
review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs
may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting Level 3 of the fair value hierarchy
are reported as transfers in/out of the Level 3 category as of the beginning of the quarter in which the reclassifications occur. During
the year ended September 30, 2023, no investments were transferred in or out of Level 3.
During the year ended September 30, 2022, $5,248 (in thousands) of investments were transferred out of Level 3 and $1,923 (in thousands)
of investments were transferred into Level 3.

 The
following table presents the quantitative information about Level 3 fair value measurements of our investments, as of September 30, 2023
(dollars in thousands):

 Valuation Methodology

 Unobservable Input

 Range
 (Weighted Average)

 Impact to

 Valuation From

 An Increase In

 Input

 $
 69,943

 Income Approach

 Market Yield

 8.50% - 32.0% (13.78%)

 Decrease

 Revenue Multiple

 0.3x - 0.3x (0.3x)

 10,939

 1.7x - 5.0x (3.1x)

 LTM EBITDA Multiple

 5.8x - 6.8x (6.3x)

 38,870

 Cost Approach

 Collateral Value

 N/A

 N/A

 11,734

 LTM Multiple

 5.8x – 6.8x (6.3x)

 22,007

 1.8x – 36.8x (2.8x)

 10,000

 Recent Purchase

 Purchase Price

 N/A – N/A (N/A)

 N/A

 Income Approach

 DLOM (Discount for lack of Marketability)

 3.0x – 3.2x (3.1x)

 Decrease

 Total

 $
 165,316

 The
following table presents the quantitative information about Level 3 fair value measurements of our investments, as of September 30, 2022
(dollars in thousands):

 Fair
 Value

 Valuation
 Methodology

 Unobservable
 Input

 Range

 (Weighted Average)

 Secured First Lien Term Loans

 $
 65,428

 Income Approach

 Market Yield

 8.50% - 24.00% (10.57%)

 Secured First Lien Term Loans

 3,807

 4.0x – 5.0x (4.5x)

 Secured First Lien Term Loans

 4,152

 Revenue Multiple

 0.2x – 0.3x (2.5x)

 Secured First Lien Term Loans

 Income Approach

 Market Spread

 5.75% - 6.25% (6.00%)

 Secured Second Lien Term Loans

 2,607

 9.0x – 10.0x (9.5x)

 47,138

 Cost Approach

 Replacement Cost

 N/A

 11,444

 2.0x – 21.0x (17.4x)

 9,951

 Market Yield

 8.50% - 13.25% (12.75%)

 1,283

 Sum of the Parts/Estimated Proceeds

 8.1x – 11.4x (9.8x)

 Total

 $
 146,675

 F- 32

 Note
4. Fair Value Measurements (continued)

 The
significant unobservable inputs used in the fair value measurement of the Company's debt and derivative investments are market
yields. Increases in market yields would result in lower fair value measurements.

 The
significant unobservable inputs used in the fair value measurement of the Company's equity/warrants investments are comparable
company multiples of revenue or EBITDA for the latest twelve months ("LTM"), next twelve months ("NTM") or a
reasonable period a market participant would consider. Increases in EBITDA multiples in isolation would result in higher fair value measurement.

 In
September 2017, the Company entered into an agreement with Global Accessories Group, LLC ("Global Accessories"), in which
the Company exchanged its full position in Lydell Jewelry Design Studio, LLC for a 3.8 % membership interest in Global Accessories, which
is included in the Consolidated Schedule of Investments. As part of the agreement, the Company is entitled to contingent consideration
in the form of cash payments ("Earnout"), as well as up to an additional 5 % membership interest ("AMI"), provided
Global Accessories achieves certain financial benchmarks through calendar year ended 2022. The Earnout and AMI were initially recorded
with an aggregate fair value of $ 2.4 million on the transaction date using the Income Approach and were included on the Consolidated
Statements of Assets and Liabilities in other assets. The contingent consideration is remeasured to fair value at each reporting date
until the contingency is resolved. Any changes in fair value will be recognized in earnings. As of September 30, 2023 and September 30,
2022, the Company deemed the contingent consideration to be uncollectible.

 Note
5. Borrowings

 As
a BDC, we are generally only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at
least 200 % after giving effect to such leverage. The amount of leverage that we employ at any time depends on our assessment of the market
and other factors at the time of any proposed borrowing.

 However, in March 2018, the Small Business Credit Availability Act
modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from 200 % to 150 %, if certain requirements
under the 1940 Act are met. Under the 1940 Act, we are allowed to increase our leverage capacity if stockholders representing at least
a majority of the votes cast, when a quorum is present, approve a proposal to do so. If we receive stockholder approval, we would be allowed
to increase our leverage capacity on the first day after such approval. Alternatively, the 1940 Act allows the majority of our independent
directors to approve an increase in our leverage capacity, and such approval would become effective after the one-year anniversary of
such approval. In either case, we would be required to make certain disclosures on our website and in SEC filings regarding, among other
things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage. No approval
was requested or obtained and the Company is still subject to the 200 % requirement.

 As
of September 30, 2023, the Company's asset coverage was 270.7 % after giving effect to leverage and therefore the Company's
asset coverage was greater than 200 %, the minimum asset coverage requirement applicable presently to the Company under the 1940 Act.

 As
of September 30, 2022, the Company's asset coverage was 255.0 % after giving effect to leverage and therefore the Company's
asset coverage was greater than 200 %, the minimum asset coverage requirement applicable presently to the Company under the 1940 Act.

 The
Company's outstanding debt excluding debt issuance costs as of September 30, 2023 and 2022 were as follows (dollars in thousands):

 Aggregate

 Principal

 Available

 Principal
 Amount Outstanding

 Carrying
 Value

 Fair
 Value

 Aggregate

 Principal Available

 Principal
 Amount

 Outstanding

 Carrying
 Value

 Fair
 Value

 2023 Notes

 $
 -

 $
 -

 $
 -

 $
 -

 $
 22,522

 $
 22,522

 $
 22,483

 $
 22,378

 2028 Notes

 57,500

 57,500

 55,811

 49,105

 57,500

 57,500

 55,480

 50,255

 Revolving Credit Facility

 21,558

 28,442

 28,442

 28,442

 -

 -

 -

 -

 Total
 debt

 $
 79,058

 $
 85,942

 $
 84,253

 $
 77,547

 $
 80,022

 $
 80,022

 $
 77,963

 $
 72,633

 F- 33

 Note 5. Borrowings (continued)

 Credit
Facility

 On
December 15, 2022, the Company entered into a 3 year $ 50.0 million revolving credit facility (the "Credit Facility") with
Woodforest National Bank ("Woodforest'). Woodforest is the administrative agent, sole bookrunner and sole lead arranger.

 Under the Credit Facility, the Company is required to comply with various
covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without limitation,
covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments,
(c) limitations on certain restricted payments, (d) maintaining a certain minimum stockholders' equity, (e) maintaining a ratio
of total assets to total indebtedness of the Company and its consolidated subsidiaries (subject to certain exceptions) of not less than
2.0:1.0, (f) limitations on pledging certain unencumbered assets, and (g) limitations on the creation or existence of agreements that
prohibit liens on certain properties of the Company and certain of its subsidiaries. These covenants are subject to important limitations
and exceptions that are described in the documents governing the Credit Facility. Amounts available to borrow under the Credit Facility
(and the incurrence of certain other permitted debt) are also subject to compliance with a borrowing base that applies different advance
rates to different types of assets (based on their value as determined pursuant to the Credit Facility) that are pledged as collateral.
As of September 30, 2023, the Company was in compliance in all respects with the terms of the Credit Facility.

 As
of September 30, 2023 and September 30, 2022, there was $ 28.4 million and $ 0.0 million outstanding, respectively, under the Credit Facility.

 Outstanding
loans under the Credit Facility bear a monthly interest rate at Term SOFR + 2.90 %. The Company is also subject to a commitment fee of
 0.25 %, which shall accrue on the actual daily amount of the undrawn portion of the revolving credit.

 On
January 17, 2023, the Company borrowed $23.2 million under the Credit Facility and used these proceeds to redeem $22.6 million in aggregate
principal amount of the issued and outstanding 2023 Notes, comprising all issued and outstanding 2023 Notes. The 2023 Notes were redeemed
at 100% of their principal amount, plus accrued and unpaid interest thereon from September 30, 2022 through, but excluding January 17,
2023 (the "Redemption Date").

Notes

 2021
Notes

 On
December 17, 2015, the Company issued $ 70.8 million in aggregate principal amount of 6.50 % unsecured notes that mature on January 30,
2021 (the "2021 Notes"). On January 14, 2016, the Company closed an additional $ 3.25 million in aggregate principal amount
of the 2021 Notes, pursuant to the partial exercise of the underwriters' option to purchase additional notes. The 2021 Notes bore
interest at a rate of 6.50 % per year, payable quarterly on January 30, April 30, July 30 and October 30 of each year, beginning January
30, 2016.

 On
October 21, 2020, the Company caused notices to be issued to the holders of the 2021 Notes regarding the Company's exercise of
its option to redeem, in whole, the issued and outstanding 2021 Notes, pursuant to Section 1104 of the Indenture dated as of February
7, 2012, between the Company and U.S. Bank National Association, as trustee, and Section 101(h) of the Third Supplemental Indenture dated
as of December 17, 2015. The Company redeemed $ 74,012,825 in aggregate principal amount of the issued and outstanding 2021 Notes on November
20, 2020 (the "Redemption Date"). The 2021 Notes were redeemed at 100 % of their principal amount ($ 25 per 2021 Note), plus
the accrued and unpaid interest thereon from October 31, 2020, through, but excluding, the Redemption Date. The Company funded the redemption
of the 2021 Notes with cash on hand.

 2023
Notes

 On
March 18, 2013, the Company issued $ 60.0 million in aggregate principal amount of 6.125 % unsecured notes that mature on March 30, 2023
(the "2023 Notes"). On March 26, 2013, the Company closed an additional $ 3.5 million in aggregate principal amount of the
2023 Notes, pursuant to the partial exercise of the underwriters' option to purchase additional notes. As of March 30, 2016, the
2023 Notes may be redeemed in whole or in part at any time or from time to time at the Company's option. The 2023 Notes bore interest
at a rate of 6.125 % per year, payable quarterly on March 30, June 30, September 30 and December 30 of each year, beginning June 30, 2013.

 On
December 12, 2016, the Company entered into an "At-The-Market" ("ATM") debt distribution agreement with FBR Capital
Markets & Co., through which the Company could offer for sale, from time to time, up to $ 40.0 million in aggregate principal amount
of the 2023 Notes. The Company sold 1,573,872 of the 2023 Notes at an average price of $ 25.03 per note, and raised $ 38.6 million in net
proceeds, through the ATM debt distribution agreement.

 F- 34

 Note
5. Borrowings (continued)

 On
March 10, 2018, the Company redeemed $ 13.0 million in aggregate principal amount of the 2023 Notes. On December 31, 2018, the Company
redeemed $ 12.0 million in aggregate principal amount of the 2023 Notes. The redemption was accounted for as a debt extinguishment in
accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $ 0.3 million and was recorded on
the Consolidated Statements of Operations as a loss on extinguishment of debt.

 On
December 31, 2018, the Company redeemed $ 12.0 million in aggregate principal amount of the 2023 Notes. The redemption was accounted for
as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized loss of $ 0.2
million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

 On
December 21, 2020, the Company announced that it completed the application process for and was authorized to transfer the listing of
the 2023 Notes to the NASDAQ Global Market. The listing and trading of the 2023 Notes on the NYSE ceased at the close of trading on December
31, 2020. Effective January 4, 2021, the 2023 Notes began trading on the NASDAQ Global Market under the trading symbol "PFXNL."

 On
November 15, 2021, the Company caused notices to be issued to the holders of the 2023 Notes regarding the Company's exercise of
its option to redeem $ 55,325,000 in aggregate principal amount of the issued and outstanding 2023 Notes on December 16, 2021. On December
16, 2021, the Company redeemed $ 55,325,000 in aggregate principal amount of the issued and outstanding 2023 Notes. The redemption was
accounted for as a debt extinguishment in accordance with ASC 470-50, Modifications and Extinguishments, which resulted in a realized
loss of $ 0.3 million and was recorded on the Consolidated Statements of Operations as a loss on extinguishment of debt.

 On
December 15, 2022, the Company caused notices to be issued to the holders of its 2023 Notes regarding the Company's exercise of
its option to redeem $ 22,521,800 in aggregate principal amount of issued and outstanding 2023 Notes, comprising all issued and outstanding
2023 Notes, at a price equal to 100 % of the principal amount of the 2023 Notes, plus accrued and unpaid interest thereon from September
30, 2022, through, but excluding, January 17, 2023 in accordance with the terms of the indenture governing the 2023 Notes. The redemption
was completed on January 17, 2023. The Company funded the redemption of the 2023 Notes with loans obtained under the Credit Facility.

 2028
Notes

 On
November 9, 2021, the Company entered into an underwriting agreement, by and between the Company and Oppenheimer & Co. Inc., as representative
of the several underwriters, in connection with the issuance and sale (the "Offering") of $ 57,500,000 (including the underwriters'
option to purchase up to $ 7,500,000 aggregate principal amount) in aggregate principal amount of its 5.25 % Notes that mature on November
1, 2028 (the "2028 Notes" or the "Notes"). The Offering occurred on November 15, 2021, pursuant to the Company's
effective shelf registration statement on Form N-2 previously filed with the SEC. Effective November 16, 2021, the 2028 Notes began trading
on the NASDAQ Global Market under the trading symbol "PFXNZ."

 On
November 15, 2021, the Company and U.S. Bank National Association, as trustee, entered into a Fourth Supplemental Indenture to its base
Indenture, dated February 7, 2012, between the Company and the Trustee. The Fourth Supplemental Indenture relates to the Offering of
the 2028 Notes.

 Fair
Value of Debt Obligations

 The
fair values of our debt obligations are determined in accordance with ASC 820, which defines fair value in terms of the price that would
be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.
The fair value of the 2023 Notes and the 2028 Notes, which are or were publicly traded, is based upon closing market quotes as of the
measurement date. As of September 30, 2023 and 2022 with respect to the 2028 Notes, and as of September 30, 2022 with respect to the
2023 Notes, such notes are deemed to be Level 1 in the fair value hierarchy, as defined in Note 4. As of September 30, 2023, the Credit
Facility is deemed to be Level 3 in the fair value hierarchy, as defined in Note 4.

 F- 35

 Note 5. Borrowings (continued)

 Debt
issuance costs related to the 2023 Notes and the 2028 Notes are reported on the Consolidated Statements of Assets and Liabilities as
a direct deduction from the face amount of the 2023 Notes and the 2028 Notes. As of September 30, 2023 and September 30, 2022, debt issuance
costs related to the 2023 Notes and the 2028 Notes were as follows (dollars in thousands):

 2023
 Notes

 2028
 Notes

 Total

 2023
 Notes

 2028
 Notes

 Total

 Total
 debt issuance costs at beginning of period

 $

 $
 2,020

 $
 2,059

 $
 3,102

 $
 2,311

 $
 5,413

 Amortized debt issuance
 costs

 3,063

 3,354

 Unamortized debt issuance
 costs

 $
 -

 $
 1,689

 $
 1,689

 $

 $
 2,020

 $
 2,059

 For
the years ended September 30, 2023, 2022 and 2021, the components of interest expense, amortized debt issuance costs, amortized deferred
financing costs, weighted average stated interest rate and weighted average outstanding debt balance for the 2023 Notes and the 2028
Notes were as follows (dollars in thousands):

 For

 2023

 2022

 2021

 2021 Notes Interest

 $
 -

 $
 -

 $

 2023 Notes Interest

 1,749

 4,768

 2023 Notes Premium

 -

 -

 ( 3
)

 2028 Notes Interest

 3,019

 2,996

 -

 Credit Facility Interest

 1,390

 -

 -

 Commitment fees

 -

 -

 Amortization of deferred
 financing costs

 -

 -

 Amortization of debt
 issuance costs

 Total

 $
 5,532

 $
 5,113

 $
 5,800

 Weighted average stated interest rate

 5.9
 %

 6.0
 %

 7.0
 %

 Weighted average debt outstanding

 $
 81,600

 $
 85,398

 $
 82,930

 Note 6.
Agreements

Management Agreement and Expense Support Agreement

 Prior
to January 1, 2021, we operated pursuant to an investment management agreement with MCC Advisors which expired on December 31, 2020.
Since January 1, 2021, we have operated pursuant to an internalized management structure. In addition, prior to January 1, 2021, the
Company was party to an expense support agreement with MCC Advisors and Medley LLC, which expired by its terms at the close of business
on December 31, 2020, in connection with the Company's adoption of the internalized management structure.

 Base Management
Fee and Incentive Fee

 Through
December 31, 2020, the investment management agreement with MCC Advisors provided for a base management fee and an incentive fee. The
base management fee was calculated at an annual rate of 1.75 % ( 0.4375 % per quarter) of up to $ 1.0 billion of the Company's gross
assets and 1.50 % ( 0.375 % per quarter) of any amounts over $ 1.0 billion of the Company's gross assets and was payable quarterly
in arrears. The base management fee was to be calculated based on the average value of the Company's gross assets at the end of
the two most recently completed calendar quarters and was to be appropriately pro-rated for any partial quarter. For the year ended September
30, 2021, the Company incurred base management fees to MCC Advisors of $ 1.1 million. No incentive fee was payable for the year ended
September 30, 2021. Since January 1, 2021, the Company no longer incurs management fees under its current internalized structure.

 F- 36

 Note 6. Agreements (continued)

 Administration
Agreement

 In
connection with the adoption by the board of directors of an internalized management structure, on November 19, 2020, the Company entered
into a Fund Accounting Servicing Agreement and an Administration Servicing Agreement on customary terms with U.S. Bancorp. A U.S. Bancorp
affiliate also served as the Company's custodian. The Company's administrative and custodial relationship with U.S. Bancorp
terminated on August 9, 2022. SS&C has since served as administrator of the Company and has provided the Company with fund accounting
and financial reporting services pursuant to the services agreement with the Company. Effective September 12, 2022, Computershare serves
as custodian for the Company pursuant to its Loan Administration and Custodial Agreement with the Company. For the years ended September
30, 2023, 2022 and 2021, we incurred $ 0.3 million, $ 0.3 million and $ 0.6 million in administrator expenses, respectively.

 As
of September 30, 2023 and 2022, $ 0 million and $ 0.1 million, respectively, were included in "administrator expenses payable"
in the accompanying Consolidated Statements of Assets and Liabilities.

 Long-Term
Cash Incentive Plan

 On
May 9, 2022, the board of directors of the Company adopted the PhenixFIN 2022 Long-Term Cash Incentive Plan (the "CIP") pursuant
to the recommendation by the Compensation Committee of the board of directors. The CIP provides for performance-based cash awards to
key employees of the Company, as approved by the Compensation Committee, based on the achievement of pre-established financial goals
for the approved performance period. The performance goals may be expressed as one or a combination of net asset value of the Company,
net asset value per share of the Company's common stock, changes in the market price of shares of the Company's common stock,
individual performance metrics and/or such other goals and objectives the Committee considers relevant in connection with accomplishing
the purposes of the CIP.

 In
connection with the approval of the CIP, the Compensation Committee in April 2022, approved awards for the three year performance period
commencing on January 1, 2022 and ending on December 31, 2024 (the "2022 LTIP Plan"). Each participant is eligible to receive
an amount of cash equal to 0 %- 200 % of the target award set forth in the table below ("Target Performance Award"), based on
the achievement of net asset value ("NAV") and NAV per share goals (weighted at 30 % and 70 %, respectively) as of the end
of the performance period (the "Performance Goals"). Performance is evaluated separately for each Performance Goal. No payment
is made with respect to a Performance Goal if a threshold level of performance is not achieved. Each Performance Goal is subject to (i)
a threshold level of performance at which a percentage of the Target Performance Award attributable to that Performance Goal may be paid
and below which no payment is made pursuant to an award, (ii) a target level of performance at which 100 % of the Target Performance Award
attributable to that Performance Goal may be paid and (iii) a maximum level of performance, at which 200 % of the Target Performance Award
attributable to that Performance Goal may be paid, in each case subject to such other terms and conditions of an award. Between threshold,
target and maximum performance levels for each Performance Goal, the portion of that award attributed to the Performance Goal shall be
interpolated in a linear progression.

 In
December 2022, pursuant to the CIP, the Compensation Committee approved awards for Mr. Lorber and Ms. McMillan for the three-year performance
period commencing on January 1, 2023 and ending on December 31, 2025 (the "2023 LTIP Plan"). Each participant is eligible
to receive an amount of cash equal to a percentage of the target award amount set forth above based on the factors described above. The
Compensation Committee, in approving the awards, evaluated each Performance Goal separately.

 The
Target Performance Award for each executive officer for both the 2022 LTIP plan and 2023 LTIP plan is set forth in the table below:

 Name and
 Title

 Dollar

 Value of
 Target
 Award

 David Lorber, Chairman of the Board
 and Chief Executive Officer

 $
 890,000

 Ellida McMillan, Chief Financial Officer

 380,000

the year ended September 30, 2023, the Company recorded an accrual of $ 317,000, for these awards. During the years ended September 30,
2022 and 2021, the Company did not record an accrual.

 F- 37

 Note 7.
Related Party Transactions

 Due
from Affiliates

 Due
from affiliates at September 30, 2023 and September 30, 2022 consists of certain legal and general and administrative expenses paid by
the Company on behalf of certain of its affiliates.

 Note 8.
Commitments

 Insurance
Reimbursements Related to Professional Fees

 The
Company has received insurance proceeds under its insurance policy primarily relating to the legal expenses associated with the dismissed
stockholder class action, captioned as FrontFour Capital Group LLC, et al. v Brook Taube et al. During the years ended September 30,
2023, 2022 and 2021, the Company received insurance proceeds of $ 0 million, $ 0 million and $ 2.1 million, respectively. The reimbursements
have been recorded as an offset or reduction in professional fees and expenses on the Consolidated Statements of Operations.

 Unfunded
commitments

 As
of September 30, 2023 and 2022, we had commitments under loan and financing agreements to fund up to $ 3.4 million to four portfolio companies
and $ 6.0 million to six portfolio companies, respectively. These commitments are primarily composed of senior secured delayed draw term
loans and revolvers, and the determination of their fair value is included in the Consolidated Schedules of Investments. The commitments
are generally subject to the borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. The
terms of the borrowings and financings subject to commitment are comparable to the terms of other loan and equity securities in our portfolio.
 A summary of the composition of the unfunded commitments as of September 30, 2023 and 2022 is shown in the table below (dollars in thousands):

 SS Acquisition, LLC (dba Soccer
 Shots Franchisin–) - Senior Secured First Lien Delayed Draw Term Loan

 $
 -

 $
 4,000

 Kemmerer Operations, L–C - Senior Secured
 First Lien Delayed Draw Term Loan

 -

 Secure Acquisition Inc. (dba Paragon Film–)
 - Senior Secured First Lien Delayed Draw Term Loan

 NVTN L–C - Senior Secured First Lien
 Delayed Draw Term Loan

 Black Angus Steakhouses, LLC Senior Secured
 First Lien Super Priority Delayed Draw Term Loan

 -

 1888 Industrial Services, L–C - Revolving

 -

 Deer Management Systems L–C - Senior

 -

 Tamarix Capital Partners
 II, L.–. - Fund Investment

 2,038

 -

 Total unfunded commitments

 3,375

 6,028

 Lease
obligations

 The
Company evaluates its leases to determine whether they should be classified as operating or financing leases. PhenixFIN identified one
operating lease for its office space. The lease commenced September 1, 2021 and expires November 30, 2026.

 Upon
entering into the lease on September 1, 2021, PhenixFIN recorded a right-of-use asset and a lease liability as of that date.

 Total
operating lease cost incurred by PhenixFIN for the years ended September 30, 2023 and 2022 was $ 141,330 and $ 129,552, respectively. During
the year ended September 30, 2021, the Company made a security deposit of $ 72,000 and prepaid rent of $ 12,000 and no operating lease
costs were incurred. As of September 30, 2023 and 2022, the asset related to the operating lease was $ 449,815 and $ 513,142, respectively,
and is included in the Other assets balance on the Consolidated Balance Sheet. As of September 30, 2023 and 2022, the lease liability
was $ 432,698 and $ 570,695, respectively, and is included in the Other liabilities balance on the Consolidated Statements of Assets and
Liabilities. As of September 30, 2023 and 2022, the remaining lease term was approximately three and four years, respectively, for each
of the respective periods and the implied borrowing rate was 5.25 % for each of the respective periods.

 The
following table shows future minimum payments under PhenixFIN's operating lease as of September 30, 2023:

 For the
 Years Ended September 30,

 Amount

 2024

 $
 156,359

 2025

 156,971

 2026

 161,680

 2027

 27,417

 Thereafter

 -

 502,427

 Difference between undiscounted
 and discounted cash flows

 ( 69,729
)

 $
 432,698

 F- 38

 Note 9.
Fee Income

 Fee
income consists of amendment fees, prepayment penalty and other miscellaneous fees which are non-recurring in nature, as well as administrative
agent fees, which are recurring in nature. The following table summarizes the Company's fee income for the years ended September
30, 2023, 2022 and 2021 (dollars in thousands):

 For

 2023

 2022

 2021

 Prepayment fee

 $
 -

 $

 $
 -

 Administrative agent fee

 Amendment fee

 Other fees

 2,059

 Fee
 income

 $

 $

 $
 2,567

 Note 10.
Directors Fees

 For
each of calendar years 2021 and 2022, the Company's independent directors each received an annual fee of $ 100,000. In addition,
the lead independent director received an annual retainer of $ 30,000; the chair of the Audit Committee received an annual retainer of
$ 25,000, and each of its other members received an annual retainer of $ 12,500; and the chairs of the Nominating and Corporate Governance
Committee and of the Compensation Committee each received an annual retainer of $ 15,000 and each of the other members of these committees
received annual retainers of $ 8,000. The Company's independent directors also received a fee of $ 3,000 for each board meeting
and $ 2,500 for each committee meeting that they attended.

 For
the 2023 calendar period through April 30, 2023, the independent directors were subject to the foregoing fee structure. Effective May
1, 2023, the structure was modified (simplified) such that each of the Company's independent directors receives an annual fee of
$ 150,000. In addition, the lead independent director receives an annual retainer of $ 30,000; the chair of the Audit Committee receives
an annual retainer of $ 25,000, and each of its other members receives an annual retainer of $ 12,500; and the chairs of the Nominating
and Corporate Governance Committee and of the Compensation Committee each receives an annual retainer of $ 15,000 and each of the
other members of these committees receives annual retainers of $ 8,000. The Company's independent directors no longer receive fees
for each board and committee meeting that they attend.

 No
board service compensation is paid to directors who are "interested persons" of the Company (as such term is defined in the
1940 Act). For the years ended September 30, 2023, 2022 and 2021, the Company recognized $ 0.7 million, $ 0.7 million and $ 1.0 million,
for directors' fees expense, respectively.

 Note 11.
Earnings Per Share

 In
accordance with the provisions of ASC Topic 260 - Earnings per Share, basic earnings per share is computed by dividing earnings available
to common stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares,
and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The Company does not have
any potentially dilutive common shares as of September 30, 2023, 2022 and 2021.

 The
following information sets forth the computation of the weighted average basic and diluted net increase/(decrease) in net assets per
share from operations for the years ended September 30, 2023, 2022 and 2021 (dollars in thousands, except share and per share amounts):

 For

 2023

 2022

 2021

 Basic and diluted:

 Net increase (decrease) in net
 assets resulting from operations

 $
 26,918

 $
 ( 6,107
)

 $
 1,278

 Weighted average shares of common stock

 outstanding - basic and diluted

 2,092,326

 2,323,601

 2,677,891

 Earnings (loss) per share of common stock - basic and diluted

 $
 12.87

 $
 ( 2.63
)

 $
 0.48

 F- 39

 Note 12.
Financial Highlights

 The following
is a schedule of financial highlights for the years ended September 30, 2023, 2022, 2021, 2020 and 2019:

 For

 2023

 2022

 2021

 2020

 2019

 Per share data

 Net
 Asset Value per share at Beginning of Period

 $
 57.49

 $
 57.08

 $
 55.30

 $
 79.46

 $
 117.92

 Results of Operations:

 Net
 Investment Income/(Loss)(1)

 3.11

 1.48

 6.92

 ( 1.00
)

 ( 7.66
)

 Net
 Realized Gain/(Loss) on Investments

 ( 5.51
)

 2.24

 ( 15.86
)

 ( 18.35
)

 ( 41.18
)

 Net
 Unrealized Gain/(Loss) on Investments

 15.27

 ( 6.22
)

 9.47

 ( 3.90
)

 14.13

 Net
 loss on extinguishment of debt

 -

 ( 0.13
)

 ( 0.05
)

 ( 0.91
)

 ( 0.75
)

 Net
 Increase (Decrease) in Net Assets Resulting from Operations

 12.87

 ( 2.63
)

 0.48

 ( 24.16
)

 ( 35.46
)

 Capital Share Transactions

 Distributions
 declared

 -

 ( 0.12
)

 -

 -

 ( 3.00
)

 Repurchase
 of common stock under stock repurchase program

 0.39

 3.16

 1.30

 -

 -

 Net
 Increase (Decrease) Resulting from Capital Share Transactions

 0.39

 3.04

 1.30

 -

 ( 3.00
)

 Net
 Asset Value per share at End of Period

 $
 70.75

 $
 57.49

 $
 57.08

 $
 55.30

 $
 79.46

 Net
 Assets at End of Period

 $
 146,705,535

 $
 120,845,408

 $
 143,693,981

 $
 150,619,517

 $
 216,432,530

 Shares Outstanding
 at End of Period

 2,073,713

 2,102,129

 2,517,221

 2,723,709

 2,723,709

 Per share market
 value at end of period

 $
 37.90

 $
 34.88

 $
 42.90

 $
 17.83

 $
 51.80

 Total
 return based on market value(2)

 8.66
 %

 ( 18.69
)%

 140.61
 %

 ( 65.58
)%

 ( 29.91
)%

 Total
 return based on net asset value (3)

 21.40

 %

 ( 15.90
)%

 ( 4.60
)%

 ( 30.41
)%

 ( 29.47
)%

 turnover rate

 32.62
 %

 69.43
 %

 24.97
 %

 5.66
 %

 11.93
 %

 F- 40

 Note 12. Financial Highlights (continued)

 Ratios:

 Ratio
 of net investment/(loss) income to average net assets after waivers, discounts and reimbursements

 4.80
 %

 2.55
 %

 12.44
 %

 ( 1.64
)%

 ( 7.96
)%

 Ratio
 of total expenses to average net assets

 10.04
 %

 9.02
 %

 9.26
 %

 14.64
 %

 25.62
 %

 Supplemental
 Data:

 of non-recurring fee income

 1.61
 %

 2.70
 %

 7.94
 %

 2.33
 %

 4.29
 %

 Average debt outstanding(4)

 $
 81,599,762

 $
 85,397,690

 $
 82,930,098

 $
 189,038,998

 $
 347,991,878

 Average debt outstanding
 per weighted average common share

 $
 39.18

 $
 36.75

 $
 30.97

 $
 69.40

 $
 127.76

 Asset
 coverage ratio per unit(5)

 $
 2,707

 $
 2,550

 $
 2,856

 $
 1,992

 $
 1,842

 2021 Notes(6)

 $
 -

 $
 -

 $
 -

 $
 74,012,825

 $
 74,012,825

 2023 Notes

 $
 -

 $
 22,521,800

 $
 77,846,800

 $
 77,846,800

 $
 77,846,800

 2028 Notes

 $
 57,500,000

 $
 57,500,000

 $
 -

 $
 -

 $
 -

 $
 28,441,941

 $
 -

 $
 -

 $
 -

 $
 -

 Israeli Notes(7)

 $

 -

 $

 -

 $

 -

 $

 -

 $

 105,136,927

 (1)
 Net investment income/(loss) excluding management and incentive fee waivers, discounts and reimbursements based on total weighted average common stock outstanding equals $ 3.11, $ 1.48, $ 6.92, $( 3.35), and $( 7.66) per share for the years ended September 30, 2023, 2022, 2021, 2020, and 2019, respectively.

 (2)
 Total return is historical and assumes changes in share price, reinvestments of all dividends and distributions at prices obtained under the Company's dividend reinvestment plan, and no sales charge for the period.

 (3)
 Total return is historical and assumes changes in NAV, reinvestments of all dividends and distributions at prices obtained under the Company's dividend reinvestment plan, and no sales charge for the period.

 (4)
 Based on daily weighted average carrying value of debt outstanding during the period.

 (5)
 Asset coverage per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $ 1,000 of indebtedness.

 As
of September 30, 2023, the Company's asset coverage was 270.7 % after giving effect to leverage and therefore the Company's
asset coverage was above 200 %, the minimum asset coverage requirement under the 1940 Act.

 (6)
 During the year ended September 30, 2021, the 2021 Notes were redeemed in full and ceased trading on November 20, 2020. The average price for the year ended September 30, 2021 reflects the period from October 1, 2020 through November 20, 2020.

 (7)
 During the year ended September 30, 2020, the Israeli Notes were redeemed in full and ceased trading on the TASE on April 14, 2020.

 Note 13.
Dividends

 Any
dividends and distributions to common stockholders are recorded on the ex-dividend date. Any amounts to be paid out as a dividend are
determined by our board of directors.

 We
have adopted an "opt out" dividend reinvestment plan for our common stockholders. As a result, if we declare a cash dividend
or other distribution, each stockholder that has not "opted out" of our dividend reinvestment plan will have its dividends
automatically reinvested in additional shares of our common stock rather than receiving cash dividends. Stockholders who receive distributions
in the form of shares of common stock will be subject to the same federal, state and local tax consequences as if they received cash
distributions.

 The
Company did not declare any regular distribution payments during the years ended September 30, 2023, 2022 and 2021. During the year ended
September 30, 2022, a special dividend was declared in the amount of $ 265,798 on June 24, 2022 payable on July 13, 2022 to Stockholders
of record on July 5, 2022.

 F- 41

 Note
14. Share Transactions

 On
January 11, 2021, the Company announced that its board of directors approved a share repurchase program.

 On
February 8, 2023, the Board of Directors approved the expansion of the amount authorized for repurchase under the Company's share
repurchase program from $ 25 million to $ 35 million. Since announcing this share repurchase program on January 11, 2021, the Company has
repurchased an aggregate of 649,996 shares of common stock through September 30, 2023 with a total cost of approximately $ 25.7 million,
or 23.9 % of shares outstanding as of the program's inception. The total remaining amount authorized under the expanded share repurchase
program is approximately $ 9.3 million.

 The
following table sets forth the number of shares of common stock repurchased by the Company at an average price of $ 39.60 per share under
its share repurchase program from February 10, 2021 through September 30, 2023:

 Month
 Ended

 Repurchased

 Repurchase
 Price Per Share

 Aggregate
 Consideration for Repurchased Shares

 February 2021

 13,082

 $ 30.25 - $ 30.96

 397,384

 March 2021

 12,241

 $ 30.25 - $ 34.42

 393,938

 April 2021

 14,390

 $ 33.11 - $ 34.89

 491,469

 May 2021

 25,075

 $ 34.56 - $ 39.93

 976,440

 August 2021

 141,700

 $ 41.03 - $ 42.28

 5,944,213

 January 2022

 7,312

 $ 39.07 - $ 40.88

 293,756

 February 2022

 170,589

 $ 39.53 - $ 41.00

 6,908,864

 March 2022

 132,054

 $ 39.24 - $ 40.57

 5,306,885

 April 2022

 2,942

 $ 39.07 - $ 41.00

 117,758

 May 2022

 3,391

 $ 37.70 - $ 39.78

 131,338

 June 2022

 3,515

 $ 37.28 - $ 39.19

 135,063

 July 2022

 $ 36.40 - $ 37.23

 25,864

 August 2022

 3,081

 $ 28.24 - $ 37.79

 112,456

 September 2022

 91,508

 $ 36.80 - $ 37.50

 3,443,845

 October 2022

 $ 35.20 - $ 36.14

 14,434

 November 2022

 1,103

 $ 34.53 - $ 35.28

 38,790

 December 2022

 1,501

 $ 33.26 - $ 34.84

 51,295

 January 2023

 2,052

 $ 32.78 - $ 34.84

 68,665

 February 2023

 3,131

 $ 33.06 - $ 39.03

 115,430

 March 2023

 2,003

 $ 37.02 - $ 38.89

 76,214

 April 2023

 $ 35.79 - $ 37.03

 23,671

 May 2023

 $ 36.53 - $36.53

 3,658

 June 2023

 2,300

 $ 33.63 - $ 38.76

 85,556

 August 2023

 14,751

 $ 36.98 - $ 39.41

 575,728

 September 2023

 $ 38.11 - $38.11

 4,772

 Total

 649,996

 $
 25,737,486

 During the year ended September 30, 2023, 28,291
 shares were transferred into treasury, including 300 shares that were repurchased during the year ended September 30, 2022 and
transferred into treasury during the year ended September 30, 2023.

 Note
15. Subsequent Events

 Management
has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. Other than the
items disclosed herein, there have been no subsequent events that occurred during such period that would require disclosure in this Form
10-K or would be required to be recognized in the Consolidated Financial Statements as of and for the year ended September 30, 2023.

 In December 2023, the Company established a subsidiary to serve as a regulated insurance company. This subsidiary
also entered into a merger agreement pursuant to which it agreed to acquire a controlling interest in VR Insurance SPV, LLC, a company
primarily engaged in the insurance business through its subsidiaries ("VR"), and to provide additional capital to such company.
Our subsidiary's controlling interest in VR is being acquired pursuant to a plan of reorganization duly adopted by VR which calls
for the merger and recapitalization of VR. The Company's total investment in the insurance subsidiary and VR is expected to approximate
$ 49 million. The merger transaction is presently expected to close in the first half of 2024 and is subject to various closing conditions,
including insurance regulatory approvals.

 F- 42

 Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 None.

 Item
9A. Controls and Procedures

 (a)
Evaluation of Disclosure Controls and Procedures

 Our
management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our
disclosure controls and procedures as of September 30, 2023. The term "disclosure controls and procedures" is defined under
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), as amended. Based on the evaluation
of our disclosure controls and procedures as of September 30, 2023, our Chief Executive Officer and Chief Financial Officer concluded
that, as of such date, our disclosure controls and procedures were effective.

 (b)
Management's Report on Internal Control Over Financial Reporting

 Our
management is responsible for establishing and maintaining adequate internal controls over financial reporting (as defined in Rules 13a-15(f)
and 15d-15(f) of the Exchange Act). Under the supervision of our Chief Executive Officer and Chief Financial Officer, our management
conducted an evaluation of the effectiveness of our internal controls over financial reporting based on the criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on
our management's evaluation under the framework in Internal Control—Integrated Framework, management concluded that
our internal controls over financial reporting were effective as of September 30, 2023.

of its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.

 (c)
Changes in Internal Controls Over Financial Reporting

 There
were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially
affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 Item
9B. Other Information

 None.

 Item 9C. Disclosure Regarding Foreign
Jurisdictions that Prevent Inspections.

 None.

 PART
III

 Item
10. Directors, Executive Officers and Corporate Governance

 The
information required by Item 10 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2024 Annual Meeting
of Stockholders, to be filed with the Securities and Exchange Commission within 120 days following the end of our fiscal year ended September

 Item
11. Executive Compensation

 The
information required by Item 11 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2024 Annual Meeting
of Stockholders, to be filed with the Securities and Exchange Commission within 120 days following the end of our fiscal year ended September

 Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 The
information required by Item 12 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2024 Annual Meeting
of Stockholders, to be filed with the Securities and Exchange Commission within 120 days following the end of our fiscal year ended September

 Item
13. Certain Relationships and Related Transactions, and Director Independence

 The
information required by Item 13 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2024 Annual Meeting
of Stockholders, to be filed with the Securities and Exchange Commission within 120 days following the end of our fiscal year ended September

 Item
14. Principal Accountant Fees and Services

 The
information required by Item 14 is hereby incorporated by reference from our definitive Proxy Statement relating to our 2024 Annual Meeting
of Stockholders, to be filed with the Securities and Exchange Commission within 120 days following the end of our fiscal year ended September

 PART
IV

 Item
15. Exhibits and Financial Statement Schedules

 (a)
The following documents are filed as part of this Annual Report:

 The following
financial statements are set forth in Item 8:

 Page

 Reports of Independent Registered Public Accounting Firms (PCAOB ID 185 and PCAOB ID 42)

 Consolidated Statements of Assets and Liabilities as of September 30, 2023 and 2022

 Consolidated Statements of Operations for the years ended September 30, 2023, 2022 and 2021

 Consolidated Statements of Changes in Net Assets for the years ended September 30, 2023, 2022 and 2021

 Consolidated Statements of Cash Flows for the years ended September 30, 2023, 2022 and 2021

 Consolidated Schedules of Investments as of September 30, 2023 and 2022

 Notes to Consolidated Financial Statements

 (b)
Exhibits:

 3.1

 Certificate
 of Incorporation (Incorporated by reference to Exhibit 99.A.3 to the Registrant's Pre-effective Amendment No. 3 to the Registration
 Statement on Form N-2 (File No. 333-166491), filed on November 23, 2010).

 3.2

 Certificate
 of Amendment to the Certificate of Incorporation (Incorporated by reference to the Current Report on Form 8-K filed on July 13, 2020).

 3.3

 Certificate
 of Amendment to Certificate of Incorporation (Incorporated by reference to the Current Report on Form 8-K filed December 28, 2020).

 3.4

 Form
 of Bylaws (Incorporated by reference to Exhibit 99.B.3 to the Registrant's Pre-effective Amendment No. 3 to the Registration
 Statement on Form N-2 (File No. 333-166491), filed on November 23, 2010).

 3.5

 Amendment
 No. 1 to Bylaws (Incorporated by reference to the Current Report on Form 8-K filed February 7, 2019).

 3.6

 Amendment
 No. 2 to Bylaws (Incorporated by reference to the Current Report on Form 8-K filed December 28, 2020).

 3.7

 Amendment
 No. 3 to the Bylaws (Incorporated by reference to the Current Report on Form 8-K filed February 16, 2021.)

 4.1

 Form
 of Stock Certificate (Incorporated by reference to Exhibit 99.D to the Registrant's Pre-effective Amendment No. 3 to the Registration
 Statement on Form N-2 (File No. 333-166491), filed on November 23, 2010).

 4.2

 Indenture,
 dated February 7, 2012, between Medley Capital Corporation and U.S. Bank National Association, as Trustee (Incorporated by reference
 to Exhibit 99.D.2 to the Registrant's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File No. 333-179237),
 filed on February 13, 2012).

 4.3

 First
 Supplemental Indenture, dated March 21, 2012, between Medley Capital Corporation and U.S. Bank National Association, as Trustee (Incorporated
 by reference to Exhibit 99.D.4 to the Registrant's Post-Effective Amendment No. 2 to the Registration Statement on Form N-2
 (File No. 333-179237), filed on March 21, 2012).

 4.4

 Second
 Supplemental Indenture, dated March 18, 2013, between Medley Capital Corporation and U.S. Bank National Association, as Trustee (Incorporated
 by reference to Exhibit 99.D.4 to the Registrant's Post-Effective Amendment No. 7 to the Registration Statement on Form N-2
 (File No. 333-179237), filed on March 15, 2013).

 4.5

 Third
 Supplemental Indenture, dated December 17, 2015, between Medley Capital Corporation and U.S. Bank National Association, as Trustee
 (Incorporated by reference to Exhibit 99.D.6 to the Registrant's Post-Effective Amendment No. 11 to the Registration Statement
 on Form N-2 (File No. 333-187324), filed December 17, 2015).

 4.6

 Fourth
 Supplemental Indenture, dated November 15, 2021, between PhenixFIN Corporation and U.S. Bank National Association, as Trustee (Incorporated
 by reference to the Current Report on Form 8-K filed November 15, 2021)

 4.7

 Description
 of PhenixFIN Corporation's securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 (Incorporated
 by reference to the Registrant's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 (File No. 333-258913),
 filed on October 15, 2021.

 10.1

 Form
 of Custody Agreement (Incorporated by reference to Exhibit 99.J.1 to the Registrant's Pre-effective Amendment No. 3 to the
 Registration Statement on Form N-2 (File No. 333-166491), filed on November 23, 2010).

 10.2

 Form
 of Dividend Reinvestment Plan (Incorporated by reference to Exhibit 99.E to the Registrant's Pre-effective Amendment No. 3
 to the Registration Statement on Form N-2 (File No. 333-166491), filed on November 23, 2010).

 10.3

 Settlement
 Term Sheet, dated April 15, 2019 (Incorporated by reference to the Current Report on Form 8-K, filed on April 17, 2019).

 10.4

 Stipulation
 of Settlement, dated July 29, 2019, by and among Medley Capital Corporation, Brook Taube, Seth Taube, Jeff Tonkel, Mark Lerdal, Karin
 Hirtler-Garvey, John E. Mack, Arthur S. Ainsberg, Medley Management Inc., MCC Advisors LLC, Medley LLC and Medley Group LLC, on the
 one hand, and FrontFour Capital Group LLC and FrontFour Master Fund, Ltd., on behalf of themselves and a class of similarly situated
 stockholders of Medley Capital Corporation, on the other hand, in connection with the action styled In re Medley Capital Corporation
 Stockholder Litigation, Cons. C.A. No. 2019-0100-KSJM (Incorporated by reference to the Current Report on Form 8-K, filed on August
 2, 2019).

 10.5

 Governance
 Agreement, dated July 29, 2019, by and among, Medley Capital Corporation, on the one hand, and FrontFour Capital Group LLC, FrontFour
 Master Fund, Ltd., FrontFour Capital Corp., FrontFour Opportunity Fund, David A. Lorber, Stephen E. Loukas and Zachary R. George,
 on the other hand (Incorporated by reference to the Current Report on Form 8-K, filed on August 2, 2019).

 10.6

 Standstill
 Agreement, dated as of August 19, 2020, by and between the Medley Capital Corporation and Howard Amster and the other persons and
 entities identified therein (Incorporated by reference to the Current Report on Form 8-K filed on August 21, 2020).

 10.7

 Fund
 Accounting Servicing Agreement, dated November 19, 2020, by and between Medley Capital Corporation and U.S. Bancorp Fund Services,
 LLC (Incorporated by reference to Exhibit 10.16 to the Annual Report on Form 10-K filed on December 11, 2020).

 10.8

 Administration
 Servicing Agreement, dated November 19, 2020, by and between Medley Capital Corporation and U.S. Bancorp Fund Services, LLC (Incorporated
 by reference to Exhibit 10.17 to the Annual Report on Form 10-K filed on December 11, 2020).

 10.9

 Services Agreement, dated August 9, 2022, by and between PhenixFIN Corp. and SS&C Technologies, Inc. (Incorporated by reference to Exhibit 10.9 to the Annual Report on Form 10-K filed on December 16, 2022).

 10.10

 Loan Administration and Custodial Agreement, dated September 12, 2022 by and between PhenixFIN Corp. and Computershare Trust Company, N.A. (Incorporated by reference to Exhibit 10.10 to the Annual Report on Form 10-K filed on December 16, 2022).

 10.11

 Credit Agreement, dated December 15, 2022 by and between PhenixFIN Corporation and Woodforest National Bank (Incorporated by reference to Exhibit 10.11 to the Annual Report on Form 10-K filed on December 16, 2022).

 10.12

 Pledge and Security Agreement, dated December 15, 2022 by and between PhenixFIN Corporation and Woodforest National Bank (Incorporated by reference to Exhibit 10.12 to the Annual Report on Form 10-K filed on December 16, 2022).

 14.1

 Code
 of Ethics & Insider Trading Policy of the Registrant (Incorporated by reference to Exhibit 99.R to the Registrant's Registration
 Statement on Form N-2 (File No. 333-258913), filed on August 19, 2021.

 21.1

 List
 of Subsidiaries (Incorporated by reference to Exhibit 21.1 of the Quarterly Report on Form 10-Q filed on February 10, 2022)

 31.1*

 Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.

 31.2*

 Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.

 32.1*

 Certification of Chief Executive Officer and Chief Financial Officer pursuant to section 906 of The Sarbanes-Oxley Act of 2002.

 99.1

 Notice of Redemption to the Holders of the 6.125% Senior Notes due 2023, dated December 15, 2022 (Incorporated by reference to Exhibit 99.1 to the Annual Report on Form 10-K filed on December 16, 2022).

 99.2*

 FlexFIN, LLC Audited Financial Statements for the Year Ended September 30, 2023

 99.3*

 PhenixFIN Compensation Clawback Policy and Procedures

 101.INS*

 101.SCH*

 101.CAL*

 Document

 101.DEF*

 Document

 101.LAB*

 101.PRE*

 Document

 104*

 Cover Page Interactive Data File (Embedded within the

 *
 Filed
 herewith.

 SIGNATURES

 Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report
on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

 Dated: December 22, 2023

 PhenixFIN Corporation

 By

 /s/
 David Lorber

 David Lorber

 Chief Executive Officer

 (Principal Executive Officer)

 By

 /s/ Ellida
 McMillan

 Ellida McMillan

 Chief Financial Officer

 (Principal Accounting and Financial Officer)

 In
accordance with the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant
and in the following capacities on December 22, 2023.

 /s/
 David Lorber

 Chief Executive Officer and Chairman
 of the

 David Lorber

 Board of Directors (Principal Executive Officer)

 /s/
 Ellida McMillan

 Chief Financial Officer

 Ellida McMillan

 (Principal Accounting and Financial Officer)

 /s/
 Arthur S. Ainsberg

 Director

 Arthur S. Ainsberg

 /s/
 Karin Hirtler-Garvey

 Director

 Karin Hirtler-Garvey

 /s/
 Lowell Robinson

 Director

 Lowell Robinson

 /s/
 Howard Amster

 Director

 Howard Amster

 12.87 0.48 2.63 2092326 2323601 2677891 Net unrealized depreciation for U.S. federal income tax purposes totaled $(38,550,032).The tax cost basis of investments is $265,010,723 as of September 30, 2023.The amortized cost represents the original cost adjusted for the amortization or accretion of premium or discount, as applicable, on debt investments using the effective interest method.
 2500000 33347000 2092326 2323601 2677891 12.87 0.48 2.63 false FY 0001490349

 pfx: FivepointTwentyfivePercentageNotesDue2028Member

 2023-03-31

 2023-12-22

 us-gaap: InvestmentUnaffiliatedIssuerMember

 us-gaap: InvestmentUnaffiliatedIssuerMember

 us-gaap: InvestmentAffiliatedIssuerNoncontrolledMember

 us-gaap: InvestmentAffiliatedIssuerNoncontrolledMember

 us-gaap: InvestmentAffiliatedIssuerControlledMember

 us-gaap: InvestmentAffiliatedIssuerControlledMember

 pfx: FirstLienTermLoansMember

 pfx: FirstLienTermLoansMember

 us-gaap: AerospaceSectorMember
 pfx: FirstLienTermLoansMember

 pfx: FirstLienTermLoansMember

 pfx: Equity417CommonUnitsMember

 pfx: Equity417CommonUnitsMember

 pfx: EquityEightThreeThreeOneFiveTwoCommonUnitsMember

 pfx: EquityEightThreeThreeOneFiveTwoCommonUnitsMember

 pfx: Equity117310ClassCPreferredUnitsMember

 pfx: Equity117310ClassCPreferredUnitsMember

 pfx: Equity163601ClassDPreferredUnitsMember

 pfx: Equity163601ClassDPreferredUnitsMember

 pfx: CopperPropertyCTLPassThroughTrustMember
 pfx: EquityCertificatesMember

 pfx: CopperPropertyCTLPassThroughTrustMember
 pfx: EquityCertificatesMember

 pfx: SeniorSecuredFirstLienTermLoanOneMember

 pfx: SeniorSecuredFirstLienTermLoanOneMember

 pfx: Equity226107CommonUnitsMember

 pfx: Equity226107CommonUnitsMember

 pfx: ConsumerGoodsNondurableMember
 pfx: Equity38MembershipInterestMember

 pfx: ConsumerGoodsNondurableMember
 pfx: Equity38MembershipInterestMember

 pfx: SeniorSecuredNotesMember

 pfx: SeniorSecuredNotesMember

 pfx: Equity205000ClassCPreferredUnitsMember

 pfx: Equity205000ClassCPreferredUnitsMember

 pfx: Equity10000000UnitsMember

 pfx: Equity10000000UnitsMember

 pfx: Warrants062OfOutstandingEquityMember

 pfx: Warrants062OfOutstandingEquityMember

 pfx: Equity180739MembershipUnitsMember

 pfx: Equity180739MembershipUnitsMember

 pfx: SecondOutExitTermLoanMember

 pfx: SecondOutExitTermLoanMember

 pfx: SecondOutExitTermLoanMember

 pfx: SecondOutExitTermLoanMember

 pfx: FirstOutExitTermLoanMember

 pfx: FirstOutExitTermLoanMember

 pfx: FirstOutExitTermLoanMember

 pfx: FirstOutExitTermLoanMember

 pfx: CreditSpreadAdjustmentMember

 pfx: EquityNineSevenFourTwoSixClassCPreferredUnitsMember

 pfx: EquityNineSevenFourTwoSixClassCPreferredUnitsMember

 pfx: Equity165000ClassEPreferredUnitsMember

 pfx: Equity165000ClassEPreferredUnitsMember

 pfx: EquityTwoTwoFiveZeroZeroCommonUnitsMember

 pfx: EquityTwoTwoFiveZeroZeroCommonUnitsMember

 pfx: PHHMortgageCorpMember
 pfx: SeniorSecuredNotesMember

 pfx: PHHMortgageCorpMember
 pfx: SeniorSecuredNotesMember

 pfx: PHHMortgageCorpMember

 pfx: PHHMortgageCorpMember

 pfx: Equity206684ClassBPreferredUnitsMember

 pfx: Equity206684ClassBPreferredUnitsMember

 pfx: SecureAcquisitionIncOneMember

 pfx: SecureAcquisitionIncOneMember

 pfx: SecureAcquisitionIncOneMember

 pfx: SecureAcquisitionIncOneMember

 pfx: Equity700000ClassAPreferredUnitsMember

 pfx: Equity700000ClassAPreferredUnitsMember

 pfx: Equity33873611ClassAUnitsMember

 pfx: Equity33873611ClassAUnitsMember

 pfx: TamarixCapitalPartnersIILPMember
 pfx: FundInvestmentMember

 pfx: TamarixCapitalPartnersIILPMember
 pfx: FundInvestmentMember

 pfx: TamarixCapitalPartnersIILPMember

 pfx: TamarixCapitalPartnersIILPMember

 pfx: Equity5441ClassAUnitsMember

 pfx: Equity5441ClassAUnitsMember

 pfx: Equity350CommonUnitsMember

 pfx: Equity350CommonUnitsMember

 pfx: AerospaceAndDefenseMember
 pfx: Equity350CommonUnitsMember

 pfx: SubtotalNonControlledNonAffiliatedInvestmentsMember

 pfx: SubtotalNonControlledNonAffiliatedInvestmentsMember

 pfx: PortfolioCompanyMember

 pfx: PortfolioCompanyMember

 pfx: Equity21562ClassAUnitsMember

 pfx: Equity625548ClassAUnitsMember

 pfx: Equity625548ClassAUnitsMember

 pfx: Equity625548ClassAUnitsMember

 pfx: ConvertiblePromissoryNoteMember

 pfx: ConvertiblePromissoryNoteMember

 pfx: Equity500000ClassAUnitsMember

 pfx: SubtotalAffiliatedInvestmentsMember

 pfx: SubtotalAffiliatedInvestmentsMember

 pfx: PaymentInKindMember

 pfx: EquityThirtyOneCommonUnitsMember

 pfx: EquityThirtyOneCommonUnitsMember

 pfx: EquityOneThousandClassAUnitsMember

 pfx: EquityOneThousandClassAUnitsMember

 pfx: Equity417CommonUnitsMember

 pfx: Equity417CommonUnitsMember

 pfx: EquityThreeFourThreeFourOneSixNinePointSixCommonUnitsMember

 pfx: EquityThreeFourThreeFourOneSixNinePointSixCommonUnitsMember

 pfx: Equity117310ClassCPreferredUnitsMember

 pfx: Equity117310ClassCPreferredUnitsMember

 pfx: CopperPropertyCTLPassThroughTrustMember
 pfx: EquityCertificatesMember

 pfx: CopperPropertyCTLPassThroughTrustMember
 pfx: EquityCertificatesMember

 pfx: DreamFindersHomesLLCMember
 pfx: PreferredEquityMember

 pfx: DreamFindersHomesLLCMember
 pfx: PreferredEquityMember

 pfx: DreamFindersHomesLLCMember

 pfx: DreamFindersHomesLLCMember

 pfx: FootprintHoldingCompanyIncMember
 pfx: Equity150CommonUnitsMember

 pfx: FootprintHoldingCompanyIncMember
 pfx: Equity150CommonUnitsMember

 pfx: FootprintHoldingCompanyIncMember

 pfx: FootprintHoldingCompanyIncMember

 pfx: EquityFiveTwoNineNineOneFourCommonUnitsMember

 pfx: EquityFiveTwoNineNineOneFourCommonUnitsMember

 pfx: ConsumerGoodsNondurableMember
 pfx: Equity38MembershipInterestMember

 pfx: ConsumerGoodsNondurableMember
 pfx: Equity38MembershipInterestMember

 pfx: GreatAJAXCorpMember
 pfx: Equity254922CommonUnitsMember

 pfx: GreatAJAXCorpMember
 pfx: Equity254922CommonUnitsMember

 pfx: GreatAJAXCorpMember

 pfx: GreatAJAXCorpMember

 pfx: EightFiveZeroSeniorSecuredNotesMember

 pfx: EightFiveZeroSeniorSecuredNotesMember

 pfx: Equity205000ClassCPreferredUnitsMember

 pfx: Equity205000ClassCPreferredUnitsMember

 pfx: Equity10000000UnitsMember

 pfx: Equity10000000UnitsMember

 pfx: Warrants062OfOutstandingEquityMember

 pfx: Warrants062OfOutstandingEquityMember

 pfx: ConvertiblePromissoryNoteMember

 pfx: ConvertiblePromissoryNoteMember

 pfx: EquityNineSevenFourTwoSixClassCPreferredUnitsMember

 pfx: EquityNineSevenFourTwoSixClassCPreferredUnitsMember

 pfx: Equity165000ClassEPreferredUnitsMember

 pfx: Equity165000ClassEPreferredUnitsMember

 pfx: Equity81500CommonUnitsMember

 pfx: Equity81500CommonUnitsMember

 pfx: Equity206684ClassBPreferredUnitsMember

 pfx: Equity206684ClassBPreferredUnitsMember

 pfx: SenderoDrillingCompanyLLCMember

 pfx: SenderoDrillingCompanyLLCMember

 pfx: SenderoDrillingCompanyLLCMember

 pfx: SenderoDrillingCompanyLLCMember

 pfx: Equity700000ClassAPreferredUnitsMember

 pfx: Equity700000ClassAPreferredUnitsMember

 pfx: Equity33873611ClassAUnitsMember

 pfx: Equity33873611ClassAUnitsMember

 pfx: Equity5441ClassAUnitsMember

 pfx: Equity5441ClassAUnitsMember

 pfx: VelocityPoolingVehicleOneLLCMember

 pfx: VelocityPoolingVehicleOneLLCMember

 pfx: WalkerEdisonFurnitureCompanyLLCMember
 pfx: ConsumerGoodsDurableMember
 pfx: Equity13044CommonUnitsMember

 pfx: WalkerEdisonFurnitureCompanyLLCMember
 pfx: ConsumerGoodsDurableMember
 pfx: Equity13044CommonUnitsMember

 pfx: WalkerEdisonFurnitureCompanyLLCMember

 pfx: WalkerEdisonFurnitureCompanyLLCMember

 pfx: EquityOnePointThreeZeroPercentagePartnershipInterestMember

 pfx: EquityOnePointThreeZeroPercentagePartnershipInterestMember

 pfx: EquityOnePointThreeZeroPercentagePartnershipInterestMember

 pfx: Equity350CommonSharesMember

 pfx: Equity350CommonSharesMember

 pfx: SubtotalNonControlledNonAffiliatedInvestmentsMember

 pfx: SubtotalNonControlledNonAffiliatedInvestmentsMember

 pfx: Equity21562ClassAUnitsMember

 pfx: Equity21562ClassAUnitsMember

 pfx: Equity678CommonUnitsMember

 pfx: Equity678CommonUnitsMember

 pfx: Equity33300PreferredUnitsMember

 pfx: Equity33300PreferredUnitsMember

 pfx: SubtotalAffiliatedInvestmentsMember

 pfx: SubtotalAffiliatedInvestmentsMember

 pfx: EquityOneThousandClassAUnitsMember

 pfx: EquityOneThousandClassAUnitsMember

 pfx: RiskRelatingToOurBusinessAndStructureMember

 pfx: RisksRelatedToOurInvestmentsMember

 pfx: RisksRelatedToOurOperationsAsABDCAndARICMember

 pfx: RisksRelatingToAnInvestmentInOurSecuritiesMember

 pfx: PreAdjustedMember

 2020-10-08

 srt: RestatementAdjustmentMember

 2020-10-08

 2020-07-01
 2020-10-07

 pfx: GALICMember

 2020-07-01
 2020-10-07

 pfx: PIKMember

 pfx: PIKMember

 pfx: PIKMember

 pfx: ControlledInvestmentMember

 us-gaap: FirstMortgageMember

 us-gaap: SeniorNotesMember

 pfx: FundInvestmentsMember

 us-gaap: FirstMortgageMember

 us-gaap: SecondMortgageMember

 us-gaap: SeniorNotesMember

 pfx: HotelGamingAndLeisureMember

 pfx: ConstructionAndBuildingMember

 pfx: MediaBroadcastingAndSubscriptionMember

 pfx: AerospaceAndDefenseMember

 pfx: HotelGamingAndLeisureMember

 pfx: ConstructionAndBuildingMember

 pfx: MediaBroadcastingAndSubscriptionMember

 pfx: AerospaceAndDefenseMember

 pfx: NortheastMember

 pfx: SoutheastMember

 pfx: MidwestMember

 pfx: WestMember

 pfx: SouthwestMember

 pfx: MidAtlanticMember

 pfx: InternationalMember

 pfx: NortheastMember

 pfx: SoutheastMember

 pfx: WestMember

 pfx: MidwestMember

 pfx: SouthwestMember

 pfx: MidAtlanticMember

 pfx: InternationalMember

 pfx: SeniorSecuredFirstLienTermLoanCOneMember

 pfx: SeniorSecuredFirstLienTermLoanCOneMember

 pfx: SeniorSecuredFirstLienTermLoanCOneMember

 pfx: SeniorSecuredFirstLienTermLoanCOneMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanMember

 pfx: SeniorSecuredFirstLienTermLoanBThreeMember

 pfx: SeniorSecuredFirstLienTermLoanBThreeMember

 pfx: SeniorSecuredFirstLienTermLoanBThreeMember

 pfx: SeniorSecuredFirstLienTermLoanBThreeMember

 pfx: RevolvingCreditFacilityOneMember

 pfx: RevolvingCreditFacilityOneMember

 pfx: RevolvingCreditFacilityOneMember

 pfx: RevolvingCreditFacilityOneMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLOneMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLOneMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLOneMember

 pfx: SeniorSecuredFirstLienSuperPriorityDDTLOneMember

 pfx: CaddoInvestorsHoldingsOneLLCMember
 pfx: EquitysMember

 pfx: CaddoInvestorsHoldingsOneLLCMember
 pfx: EquitysMember

 pfx: CaddoInvestorsHoldingsOneLLCMember
 pfx: EquitysMember

 pfx: CaddoInvestorsHoldingsOneLLCMember
 pfx: EquitysMember

 pfx: DynamicEnergyServicesInternationalLLCMember
 pfx: SeniorSecuredFirstLienTermLoanSixMember

 pfx: DynamicEnergyServicesInternationalLLCMember
 pfx: SeniorSecuredFirstLienTermLoanSixMember

 pfx: DynamicEnergyServicesInternationalLLCMember
 pfx: SeniorSecuredFirstLienTermLoanSixMember

 pfx: DynamicEnergyServicesInternationalLLCMember
 pfx: SeniorSecuredFirstLienTermLoanSixMember

 pfx: JFLNGSPartnersLLCMember

 pfx: JFLNGSPartnersLLCMember

 pfx: JFLNGSPartnersLLCMember

 pfx: JFLNGSPartnersLLCMember

 pfx: JFLWCSPartnersLLCMember

 pfx: JFLWCSPartnersLLCMember

 pfx: JFLWCSPartnersLLCMember

 pfx: JFLWCSPartnersLLCMember

 pfx: URTAcquisitionHoldingsCorporationMember
 us-gaap: WarrantMember

 pfx: URTAcquisitionHoldingsCorporationMember
 us-gaap: WarrantMember

 pfx: URTAcquisitionHoldingsCorporationMember
 us-gaap: WarrantMember

 pfx: URTAcquisitionHoldingsCorporationMember
 us-gaap: WarrantMember

 pfx: SeniorSecuredFirstLienDelayedDrawTermLoanTwoMember

 pfx: SeniorSecuredFirstLienDelayedDrawTermLoanTwoMember

 pfx: SeniorSecuredFirstLienDelayedDrawTermLoanTwoMember

 pfx: SeniorSecuredFirstLienDelayedDrawTermLoanTwoMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanOneMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanOneMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanOneMember

 pfx: SuperPrioritySeniorSecuredFirstLienTermLoanOneMember

 pfx: SeniorSecuredFirstLienTermLoanB2Member

 pfx: SeniorSecuredFirstLienTermLoanB2Member

 pfx: SeniorSecuredFirstLienTermLoanB2Member

 pfx: SeniorSecuredFirstLienTermLoanB2Member

 pfx: LydellJewelryDesignStudioLLCMember

 2017-09-01
 2017-09-30

 2017-09-01
 2017-09-30

 2017-09-30

 us-gaap: FairValueInputsLevel2Member

 us-gaap: FairValueInputsLevel2Member

 us-gaap: SecuredDebtMember

 us-gaap: SecuredDebtMember

 us-gaap: SecuredDebtMember

 pfx: SeniorSecuredFirstLienTermLoansTwoMember

 pfx: SeniorSecuredFirstLienTermLoansTwoMember

 pfx: SeniorSecuredFirstLienTermLoansThreeMember

 pfx: SeniorSecuredFirstLienTermLoansThreeMember

 pfx: EquityWarrantsTwoMember

 pfx: EquityWarrantsTwoMember

 pfx: EquityWarrantsThreeMember

 pfx: EquityWarrantsThreeMember

 pfx: EquityWarrantsFourMember

 pfx: EquityWarrantsFourMember

 pfx: EquityWarrantsFiveMember

 pfx: EquityWarrantsFiveMember

 pfx: SeniorSecuredFirstLienTermLoansTwoMember

 pfx: SeniorSecuredFirstLienTermLoansTwoMember

 pfx: SeniorSecuredFirstLienTermLoansThreeMember

 pfx: SeniorSecuredFirstLienTermLoansThreeMember

 pfx: EquityWarrantsOneMember

 pfx: EquityWarrantsOneMember

 pfx: EquityWarrantsTwoMember

 pfx: EquityWarrantsTwoMember

 pfx: EquityWarrantsThreeMember

 pfx: EquityWarrantsThreeMember

 2018-03-31

 2018-03-31

 2022-12-01
 2022-12-15

 2015-12-01
 2015-12-17

 2015-12-17

 2016-01-14

 2016-01-30

 2016-04-30

 2016-07-30

 2016-10-30

 2020-10-21

 2020-10-31

 2013-03-18
 2013-03-18

 2013-03-18

 2013-03-26
 2013-03-26

 2013-12-30

 2013-03-30

 2013-06-30

 2013-09-30

 2018-03-10

 2018-12-31

 2018-03-01
 2018-03-10

 2018-12-31

 2018-12-01
 2018-12-31

 2021-11-15

 2021-12-16

 2021-12-01
 2021-12-16

 2022-12-15

 2021-11-01
 2021-11-09

 pfx: UnderwritersMember

 2021-11-01
 2021-11-09

 2021-11-09

 pfx: NotesInterestMember

 pfx: NotesInterestMember

 pfx: NotesInterestMember

 pfx: TwoThousandTwentyThreeNotesInterestMember

 pfx: TwoThousandTwentyThreeNotesInterestMember

 pfx: TwoThousandTwentyThreeNotesInterestMember

 pfx: NotesPremiumMember

 pfx: NotesPremiumMember

 pfx: NotesPremiumMember

 pfx: TwoThousandTwentyEightNotesInterestMember

 pfx: TwoThousandTwentyEightNotesInterestMember

 pfx: TwoThousandTwentyEightNotesInterestMember

 pfx: WeightedAverageStatedInterestRateMember

 pfx: WeightedAverageStatedInterestRateMember

 pfx: WeightedAverageStatedInterestRateMember

 pfx: BaseManagementFeeAndIncentiveFeeMember

 pfx: BaseManagementFeeAndIncentiveFeeMember

 2020-12-31

 pfx: BaseManagementFeeAndIncentiveFeeMember

 2023-01-01
 2023-12-31

 2020-12-01
 2020-12-31

 pfx: TargetLevelOfPerformanceMember

 pfx: MaximumLevelOfPerformanceMember

 srt: ChiefExecutiveOfficerMember

 srt: ChiefFinancialOfficerMember

 pfx: PortfolioCompaniesMember

 pfx: PortfolioCompaniesMember

 pfx: OtherAssetMember

 pfx: OtherAssetMember

 pfx: OtherLiabilityMember

 pfx: OtherLiabilityMember

 pfx: SSAcquisitionLLCMember

 pfx: SSAcquisitionLLCMember

 pfx: IndustrialServicesLLCRevolvingCreditFacilityMember

 pfx: IndustrialServicesLLCRevolvingCreditFacilityMember

 pfx: DeerManagementSystemsLLCSeniorSecuredFirstLienDelayedDrawTermLoanMember

 pfx: DeerManagementSystemsLLCSeniorSecuredFirstLienDelayedDrawTermLoanMember

 pfx: TamarixCapitalPartnersIILPFundInvestmentMember

 pfx: TamarixCapitalPartnersIILPFundInvestmentMember

 pfx: LeadIndependentDirectorMember

 pfx: AuditCommitteeChairMember

 pfx: OtherMembersOfAuditCommitteeMember

 pfx: NominatingAndCorporateGovernanceCommitteeChairAndCompensationCommitteeChairMember

 pfx: OtherMembersOfNominatingAndCorporateGovernanceCommitteeAndTheCompensationCommitteeMember

 pfx: EachBoardMeetingMember

 pfx: EachCommitteeMeetingMember

 pfx: LeadIndependentDirectorMember

 pfx: AuditCommitteeChairMember

 pfx: OtherMembersOfAuditCommitteeMember

 pfx: NominatingAndCorporateGovernanceCommitteeChairAndCompensationCommitteeChairMember

 pfx: OtherMembersOfNominatingAndCorporateGovernanceCommitteeAndTheCompensationCommitteeMember

 2018-10-01

 2018-09-30

 2018-10-01

 2018-10-01

 2018-10-01

 2023-02-08

 2023-02-08

 pfx: ShareRepurchaseProgramOneMember

 pfx: ShareRepurchaseProgramOneMember

 pfx: ShareRepurchaseProgramOneMember

 pfx: ShareRepurchaseProgramTwoMember

 pfx: ShareRepurchaseProgramTwoMember

 pfx: ShareRepurchaseProgramTwoMember

 pfx: ShareRepurchaseProgramThreeMember

 pfx: ShareRepurchaseProgramThreeMember

 pfx: ShareRepurchaseProgramThreeMember

 pfx: ShareRepurchaseProgramFourMember

 pfx: ShareRepurchaseProgramFourMember

 pfx: ShareRepurchaseProgramFourMember

 pfx: ShareRepurchaseProgramFiveMember

 pfx: ShareRepurchaseProgramFiveMember

 pfx: ShareRepurchaseProgramFiveMember

 pfx: ShareRepurchaseProgramSixMember

 pfx: ShareRepurchaseProgramSixMember

 pfx: ShareRepurchaseProgramSixMember

 pfx: ShareRepurchaseProgramSevenMember

 pfx: ShareRepurchaseProgramSevenMember

 pfx: ShareRepurchaseProgramSevenMember

 pfx: ShareRepurchaseProgramEightMember

 pfx: ShareRepurchaseProgramEightMember

 pfx: ShareRepurchaseProgramEightMember

 pfx: ShareRepurchaseProgramNineMember

 pfx: ShareRepurchaseProgramNineMember

 pfx: ShareRepurchaseProgramNineMember

 pfx: ShareRepurchaseProgramTenMember

 pfx: ShareRepurchaseProgramTenMember

 pfx: ShareRepurchaseProgramTenMember

 pfx: ShareRepurchaseProgramElevenMember

 pfx: ShareRepurchaseProgramElevenMember

 pfx: ShareRepurchaseProgramElevenMember

 pfx: ShareRepurchaseProgramTwelveMember

 pfx: ShareRepurchaseProgramTwelveMember

 pfx: ShareRepurchaseProgramTwelveMember

 pfx: ShareRepurchaseProgramThirteenMember

 pfx: ShareRepurchaseProgramThirteenMember

 pfx: ShareRepurchaseProgramThirteenMember

 pfx: ShareRepurchaseProgramFourteenMember

 pfx: ShareRepurchaseProgramFourteenMember

 pfx: ShareRepurchaseProgramFourteenMember

 pfx: ShareRepurchaseProgramFifteenMember

 pfx: ShareRepurchaseProgramFifteenMember

 pfx: ShareRepurchaseProgramFifteenMember

 pfx: ShareRepurchaseProgramSixteenMember

 pfx: ShareRepurchaseProgramSixteenMember

 pfx: ShareRepurchaseProgramSixteenMember

 pfx: ShareRepurchaseProgramSeventeenMember

 pfx: ShareRepurchaseProgramSeventeenMember

 pfx: ShareRepurchaseProgramSeventeenMember

 pfx: ShareRepurchaseProgramEighteenMember

 pfx: ShareRepurchaseProgramEighteenMember

 pfx: ShareRepurchaseProgramEighteenMember

 pfx: ShareRepurchaseProgramNineteenMember

 pfx: ShareRepurchaseProgramNineteenMember

 pfx: ShareRepurchaseProgramNineteenMember

 pfx: ShareRepurchaseProgramTwentyMember

 pfx: ShareRepurchaseProgramTwentyMember

 pfx: ShareRepurchaseProgramTwentyMember

 pfx: ShareRepurchaseProgramTwentyOneMember

 pfx: ShareRepurchaseProgramTwentyOneMember

 pfx: ShareRepurchaseProgramTwentyOneMember

 pfx: ShareRepurchaseProgramTwentyTwoMember

 pfx: ShareRepurchaseProgramTwentyTwoMember

 pfx: ShareRepurchaseProgramTwentyTwoMember

 pfx: ShareRepurchaseProgramTwentyThreeMember

 pfx: ShareRepurchaseProgramTwentyThreeMember

 pfx: ShareRepurchaseProgramTwentyThreeMember

 pfx: ShareRepurchaseProgramTwentyFourMember

 pfx: ShareRepurchaseProgramTwentyFourMember

 pfx: ShareRepurchaseProgramTwentyFourMember

 pfx: ShareRepurchaseProgramTwentyFiveMember

 pfx: ShareRepurchaseProgramTwentyFiveMember

 pfx: ShareRepurchaseProgramTwentyFiveMember

 srt: ScenarioForecastMember

 2023-12-01
 2023-12-31