NOTE 13 – STOCKHOLDER DIVIDENDS AND INCOME TAXES

On March 31, 2020, after assessing the impacts of the COVID-19 pandemic, the Company’s board of directors unanimously approved the suspension of regular quarterly dividends to the Company’s stockholders. On May 10, 2021, the Board of Directors reinstated the quarterly dividend at the rate of $0.05 per common share, payable to holders of record as of May 15, 2021.

Subsequently, the Company declared $0.06 per common share for the quarter ended June 30, 2021, on July 9, 2021 and $0.07 per common share for the quarter ending September 30, 2021 on September 13, 2021. The dividend declared on July 9, 2021 was paid on July 26, 2021. The dividend declared on September 13, 2021 will be paid on or about October 30, 2021. The Board intends to continue such dividend so long as it is supported by the previous quarter’s income, but may increase or decrease the dividend accordingly.

The following table reflects the dividends per share that the Company has declared on its common stock during the six months ended June 30, 2021:

	Distributions
During the Quarter Ended	Per Share		Amount
June 30, 2021	$	0.050	$	664,714

Of the total dividends paid during the six months ended June 30, 2021, $204,277 has been reinvested under the Company’s DRIP.

The following table reflects the dividends per share that the Company has declared on its common stock during the year ended June 30, 2020:

	Distributions
During the Quarter Ended	Per Share		Amount
September 30, 2019	$	0.175	$	1,983,801
December 31, 2019		0.175		2,096,915
March 31, 2020		0.120		1,461,875
	$	0.470	$	5,542,591

Of the total dividends paid during the year ended June 30, 2020, $2,891,349 has been reinvested under the Company’s DRIP.

Income Taxes (Predecessor Basis)

While our fiscal year end for financial reporting purposes is June 30 of each year, our tax year end is December 31 of each year. The information presented in this footnote is based on our tax year end for each period presented, unless otherwise specified.

For income tax purposes, dividends paid to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The tax character of dividends paid to stockholders for the tax year ended December 31, 2019 (the most recent tax year ended completed and filed), is as follows:

	December 31, 2019
Capital gain	$	2,415,285
Ordinary income		3,085,298
Return of capital		24,521
Total dividends	$	5,525,104

The tax character of dividends paid to stockholders during the tax year ended December 31, 2020, is expected to be ordinary income, capital gains and return of capital. Because of the difference between our fiscal and tax year ends, the final determination of the tax character of dividends will not be made until we file our tax return for the tax year ending December 31, 2020.

The components of undistributed earnings on a tax basis as of December 31, 2019 is as follows:

		December 31, 2019
Unrealized fair value appreciation		$	4,813,649

The following table presents the aggregate gross unrealized appreciation, depreciation, and cost basis of investments for income tax purposes as of:

	June 30, 2020
Aggregate gross unrealized appreciation	$	4,054,329
Aggregate gross unrealized depreciation		(12,067,004	)
Net unrealized appreciation (depreciation)	$	(8,012,675	)

Aggregate cost (tax basis)	$	101,717,821