Chicago Atlantic Real Estate Finance, Inc.

Previous wording

We routinely post important information for investors on our website, www.chicagoatlantic.com. We intend to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. We encourage investors, analysts, the media, and others interested in us to monitor the Investments section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations, webcasts and other information we post from time to time on our website. To sign-up for email-notifications, please visit “Contact” section of our website under “Join Our Mailing List” and enter the required information to enable notifications.

Current wording

We routinely post important information for investors on our website, www.chicagoatlantic.com. We intend to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. We encourage investors, analysts, the media, and others interested in us to monitor the Investments section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations, webcasts and other information we post from time to time on our website. To sign-up for email-notifications, please visit the “Contact” section of our website under “Join Our Mailing List” and enter the required information to enable notifications.

Previous wording

We generate revenue primarily in the form of interest income on loans which is generally payable monthly. The principal amount of our loans and any accrued but unpaid interest thereon generally become due at the applicable maturity date. In some cases, our interest income includes a paid-in-kind (“PIK”) component for a portion of the total interest. The PIK interest, computed at the contractual rate specified in each applicable loan agreement, is accrued in accordance with the terms of such loan agreement and capitalized to the principal balance of the loan and recorded as interest income. The PIK interest added to the principal balance is typically amortized and paid in accordance with the applicable loan agreement. In cases where the loans do not amortize, the PIK interest is collected upon repayment of the outstanding principal. We also generate revenue from original issue discounts (“OID”), which is also recognized as interest income from loans over the initial term of the applicable loans. Delayed draw loans may earn interest or unused fees on the undrawn portion of the loan, which is recognized as interest income in the period earned. Other fees, including prepayment fees and exit fees, are also recognized as interest income when received. Any such fees will be generated in connection with our loans and recognized as earned in accordance with generally accepted accounting principles (“GAAP”).

Current wording

We generate revenue primarily in the form of interest income on loans which is generally payable monthly. The principal amount of our loans and any accrued but unpaid interest thereon generally become due at the applicable maturity date. In some cases, our interest income includes a paid-in-kind (“PIK”) component for a portion of the total interest. The PIK interest, computed at the contractual rate specified in each applicable loan agreement, is accrued in accordance with the terms of such loan agreement and capitalized to the principal balance of the loan and recorded as interest income. The PIK interest added to the principal balance is typically amortized and paid in accordance with the applicable loan agreement. In cases where the loans do not amortize, the PIK interest is collected upon repayment of the outstanding principal. We also generate revenue from original issue discounts (“OID”), which are also recognized as interest income from loans over the initial term of the applicable loans. Delayed draw loans may earn interest or unused fees on the undrawn portion of the loan, which is recognized as interest income in the period earned. Other fees, including prepayment fees and exit fees, are also recognized as interest income when received. Any such fees will be generated in connection with our loans and recognized as earned in accordance with generally accepted accounting principles (“GAAP”).

Previous wording

The following table sets forth the components of interest and fee income for the three months and six months ended June 30, 2026 and 2025:

Current wording

The following table sets forth the components of interest and fee income for the three months and nine months ended September 30, 2026 and 2025:

Previous wording

1 Other fee income includes prepayment fees, make-whole fees, exit/success fees, and/or other upfront fees on loans for which the fair value option was elected, which are included in interest income on the Consolidated Statements of Income.

Current wording

Other fee income includes prepayment fees, make-whole fees, exit/success fees, and/or other upfront fees on loans for which the fair value option was elected, which are included in interest income on the Consolidated Statements of Income.

Previous wording

The below table summarizes the gross interest income derived from fixed and floating-rate loans during the three months and six months ended June 30, 2026 and 2025 based on portfolio composition as of the quarter end date.

Current wording

The below table summarizes the gross interest income derived from fixed and floating-rate loans during the three months and nine months ended September 30, 2026 and 2025 based on portfolio composition as of the quarter end date.

Previous wording

Our primary operating expenses are the payment of Base Management Fees and Incentive Compensation under our Management Agreement with our Manager and the allocable portion of overhead and other expenses paid or incurred on our behalf, including reimbursing our Manager for a certain portion of the compensation of certain personnel of our Manager who assist in the management of our affairs, excepting only those expenses that are specifically the responsibility of our Manager pursuant to our Management Agreement. We bear all other costs and expenses of our operations and transactions, including (without limitation) fees and expenses relating to:

Current wording

Our primary operating expenses are the payment of Base Management Fees and Incentive Compensation under our Management Agreement with our Manager and the allocable portion of overhead and other expenses paid or incurred on our behalf, including reimbursing our Manager for a certain portion of the compensation of certain personnel of our Manager who assist in the management of our affairs, excepting only those expenses that are specifically the responsibility of our Manager pursuant to our Management

Previous wording

We are a Maryland corporation that elected to be taxed as a REIT under the Code, commencing with the taxable period ended December 31, 2021. We believe that we qualify as a REIT and that our method of operation will enable us to continue to qualify as a REIT. However, no assurances can be given that our beliefs or expectations will be fulfilled, since qualification as a REIT depends on us satisfying numerous asset, income and distribution tests which depends, in part, on our operating results.

Current wording

We are a Maryland corporation that elected to be taxed as a REIT under the Code, commencing with the taxable period ended December 31, 2021. We believe that we qualify as a REIT and that our method of operation will enable us to continue to qualify as a REIT. However, no assurances can be given that our beliefs or expectations will be fulfilled, since qualification as a REIT depends on us satisfying numerous asset, income and distribution tests, which depend, in part, on our operating results.

Previous wording

To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute annually to our stockholders at least 90% of our REIT taxable income prior to the deduction for dividends paid. To the extent that we distribute less than 100% of our REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), we will pay tax at regular corporate rates on that undistributed portion. Furthermore, if we distribute less than the sum of 1) 85% of our ordinary income for the calendar year, 2) 95% of our capital gain net income for the calendar year, and 3) any undistributed shortfall from our prior calendar year (the “Required Distribution”) to our stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then we are required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if we elect to retain any of our net capital gain for any tax year, we must notify our stockholders and pay tax at regular corporate rates on the retained net capital gain. Our stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax. If it is determined that our estimated current year taxable income will be in excess of estimated dividend distributions (including capital gain dividend) for the current year from such income, we will accrue excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations. Excise tax expense, if any, is included in the line item, income tax expense. For the six months ended June 30, 2026 and 2025, we did not incur excise tax expense.

Current wording

To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute annually to our stockholders at least 90% of our REIT taxable income prior to the deduction for dividends paid. To the extent that we distribute less than 100% of our REIT taxable income in any tax year (taking into account any distributions made in a subsequent tax year under Sections 857(b)(9) or 858 of the Code), we will pay tax at regular corporate rates on that undistributed portion. Furthermore, if we distribute less than the sum of 1) 85% of our ordinary income for the calendar year, 2) 95% of our capital gain net income for the calendar year, and 3) any undistributed shortfall from our prior calendar year (the “Required Distribution”) to our stockholders during any calendar year (including any distributions declared by the last day of the calendar year but paid in the subsequent year), then we are required to pay a non-deductible excise tax equal to 4% of any shortfall between the Required Distribution and the amount that was actually distributed. The 90% distribution requirement does not require the distribution of net capital gains. However, if we elect to retain any of our net capital gain for any tax year, we must notify our stockholders and pay tax at regular corporate rates on the retained net capital gain. Our stockholders must include their proportionate share of the retained net capital gain in their taxable income for the tax year, and they are deemed to have paid the REIT’s tax on their proportionate share of the retained capital gain. Furthermore, such retained capital gain may be subject to the nondeductible 4% excise tax. If it is determined that our estimated current year taxable income will be in excess of estimated dividend distributions (including capital gain dividend) for the current year from such income, we will accrue excise tax on estimated excess taxable income as such taxable income is earned. The annual expense is calculated in accordance with applicable tax regulations. Excise tax expense, if any, is included in the line item, income tax expense. For the nine months ended September 30, 2026 and 2025, we did not incur excise tax expense.

Previous wording

As of June 30, 2026 our loan portfolio included 29 loans held for investment, with an aggregate of $412.1 million in principal outstanding, and approximately $2.4 million in unfunded commitments under delayed draw term loan facilities. Our loans are generally classified as held for investment and carried at amortized cost on the consolidated balance sheets. Such loans are generally secured by real estate, equipment, licenses, intellectual property and other assets of the borrowers to the extent permitted by the applicable laws and the regulations governing such borrowers. The below table summarizes the total outstanding principal and carrying value, net of current expected credit loss reserves as of June 30, 2026 and December 31, 2025:

Current wording

As of September 30, 2026 our loan portfolio included 28 loans held for investment, with an aggregate of $427.6 million in principal outstanding. Our loans are generally classified as held for investment and carried at amortized cost on the consolidated balance sheets. Such loans are generally secured by real estate, equipment, licenses, intellectual property and other assets of the borrowers to the extent permitted by the applicable laws and the regulations governing such borrowers. The below table summarizes the total outstanding principal and carrying value, net of current expected credit loss reserves as of September 30, 2026 and December 31, 2025:

Previous wording

As of June 30, 2026 and December 31, 2025, our loan portfolio had a weighted-average yield-to-maturity internal rate of return (“YTM IRR”) of 15.6% and 16.3%, respectively, and was substantially secured by real estate and, with respect to certain of our loans, substantially all assets of the borrowers and certain of their subsidiaries, including equipment, receivables, and licenses. YTM IRR is calculated using various inputs, including (i) cash and paid-in-kind (“PIK”) interest, which is capitalized and added to the outstanding principal balance of the applicable loan, (ii) original issue discount (“OID”), (iii) amortization, (iv) unused fees, and (v) exit fees. Certain of our loans have extension or amendment fees, which are not included in our YTM IRR calculations, but may increase YTM IRR if such extension options are exercised by borrowers.

Current wording

As of September 30, 2026 and December 31, 2025, our loan portfolio had a weighted-average yield-to-maturity internal rate of return (“YTM IRR”) of 15.1% and 16.3%, respectively, and was substantially secured by real estate and, with respect to certain of our loans, substantially all assets of the borrowers and certain of their subsidiaries, including equipment, receivables, and licenses. YTM IRR is calculated using various inputs, including (i) cash and paid-in-kind (“PIK”) interest, which is capitalized and added to the outstanding principal balance of the applicable loan, (ii) original issue discount (“OID”), (iii) amortization, (iv) unused fees, and (v) exit fees. Certain of our loans have extension or amendment fees, which are not included in our YTM IRR calculations, but may increase YTM IRR if such extension options are exercised by borrowers.

Previous wording

Our floating-rate loans typically include a Prime or SOFR interest rate floor that is generally set at the prevailing Prime or SOFR rate, as applicable, on the date of origination. As of June 30, 2026 and December 31, 2025 none of our loans were subject to an interest rate ceiling. We typically include an interest rate floor with our floating rate loans in order to provide us with protection against decreases in interest rates. As of June 30, 2026 and December 31, 2025, 58.8% and 58.2% of our loans were subject to an interest rate floor. As of June 30, 2026 and December 31, 2025, our portfolio had the following interest rate floors:

Current wording

Our floating-rate loans typically include a Prime or SOFR interest rate floor that is generally set at the prevailing Prime or SOFR rate, as applicable, on the date of origination. As of September 30, 2026 and December 31, 2025 none of our loans were subject to an interest rate ceiling. We typically include an interest rate floor with our floating rate loans in order to provide us with protection against decreases in interest rates. As of September 30, 2026 and December 31, 2025, 60.5% and 58.2% of our loans were subject to an interest rate floor. As of September 30, 2026 and December 31, 2025, our portfolio had the following interest rate floors:

Previous wording

The following tables present changes in loans held for investment at carrying value as of and for the six months ended June 30, 2026 and 2025:

Current wording

The following tables present changes in loans held for investment at carrying value as of and for the nine months ended September 30, 2026 and 2025:

Previous wording

Recent Developments During the Second Quarter of 2026

Current wording

Recent Developments During the Third Quarter of 2026

Previous wording

Subsequent Updates to Our Loan Portfolio during the Third Quarter of 2026

Current wording

Updates to Our Loan Portfolio during the Third Quarter of 2026

Previous wording

During the period from April 1, 2026 through June 30, 2026, we advanced approximately $56.9 million of principal, excluding capitalized PIK interest and fees, to new and existing borrowers under delayed draw and revolving loan facilities. Additionally, we received approximately $19.7 million of repayments, comprised of $3.3 million in scheduled amortization payments, $1.0 million in partial prepayments and $15.4 million from full repayments. A brief description of certain investment activities are described below:

Current wording

During the period from July 1, 2026 through September 30, 2026, we advanced approximately $22.5 million of principal, excluding capitalized PIK interest and fees, to new and existing borrowers under delayed draw and revolving loan facilities. Additionally, we received approximately $9.4 million of repayments, comprised of $3.8 million in scheduled amortization payments, $2.4 million in partial prepayments and $3.2 million from full repayments. A brief description of certain investment activities are described below:

Previous wording

In July 2026, Loan #21 was amended to extend the maturity date to August 18, 2026. No other terms of the loan were modified in connection with this amendment.

Current wording

In July 2026, Loan #34 was amended to extend the maturity date to March 31, 2027. No other terms of the loan were modified in connection with this amendment.

Previous wording

On June 17, 2026, we entered into an Agreement and Plan of Merger with LIEN pursuant to which the Company will elect to be regulated as a business development company under the Investment Company Act of 1940, as amended (the "Investment Company Act"), and merge with and into LIEN, with LIEN as the surviving company and continuing to trade on Nasdaq under the symbol “LIEN.” REFI stockholders will receive shares of LIEN common stock based on an Exchange Ratio determined by the relative adjusted net asset values per share of the Company and LIEN shortly before closing. The Merger, which is subject to stockholder approvals, regulatory approvals, effectiveness of a Form N-14 registration statement filed by LIEN on July 31, 2026, which contains a joint proxy statement/prospectus, and other customary conditions, is currently expected to close in the fourth quarter of 2026. There can be no assurance that the Merger will be completed on the anticipated terms or timing, or at all. See Note 16 to the consolidated financial statements.

Current wording

On June 17, 2026, we entered into an Agreement and Plan of Merger with LIEN pursuant to which the Company will elect to be regulated as a business development company under the Investment Company Act of 1940, as amended (the "Investment Company Act"), and merge with and into LIEN, with LIEN as the surviving company and continuing to trade on NASDAQ under the symbol “LIEN.” REFI stockholders will receive shares of LIEN common stock based on an Exchange Ratio determined by the relative adjusted net asset values per share of the Company and LIEN shortly before closing. The Merger, which is subject to stockholder approvals, regulatory approvals, effectiveness of a Form N-14 registration statement filed by LIEN on July 31, 2026, which contains a joint proxy statement/prospectus, and other customary conditions, is currently expected to close before the deadline of June 30, 2027. There can be no assurance that the Merger will be completed on the anticipated terms or timing, or at all. See Note 16 to the consolidated financial statements.

Previous wording

Updates to Our Loan Portfolio during the Second Quarter of 2026

Current wording

Subsequent Updates to Our Loan Portfolio during the Fourth Quarter of 2026

Previous wording

On July 9, 2026, the Company entered into a Loan Agreement with Koach, pursuant to which the Company issued 4,306,754 shares of its common stock at a price of $14.53 per share in a private placement, in exchange for second-lien promissory notes issued by Koach with an aggregate principal amount of approximately $62.5 million. The shares issued represent approximately 16.8% of the Company’s common stock outstanding immediately after giving effect to the issuance. The Koach Notes are secured by mortgages on 32 retail and related properties leased to cannabis operators, bear interest at an aggregate rate of 12.0% per annum (10.0% cash and 2.0% payable in kind), provide for an exit fee of up to 2.5x the commitment amount of each Note, and have a weighted average remaining life of approximately 12.0 years. The shares issued in connection with the transaction will be reflected in the inputs used to determine the Exchange Ratio for the Merger. See Note 17 to the consolidated financial statements.

Current wording

On July 9, 2026, the Company entered into a Loan Agreement with Koach, pursuant to which the Company issued 4,306,754 shares of its common stock at a price of $14.53 per share in a private placement, in exchange for second-lien promissory notes issued by Koach with an aggregate principal amount of approximately $62.5 million. The shares issued represent approximately 16.8% of the Company’s common stock outstanding immediately after giving effect to the issuance. The Koach Notes are secured by mortgages on 32 retail and related properties leased to cannabis operators, bear interest at an aggregate rate of 12.0% per annum (10.0% cash and 2.0% payable in kind), provide for an exit fee of up to 2.5x the commitment amount of each Note, and have a weighted average remaining life of approximately 11.8 years. The shares issued in connection with the transaction will be reflected in the inputs used to determine the Exchange Ratio for the Merger. See Notes 2, 8 and 10 to the consolidated financial statements.

Previous wording

During the three months ended June 30, 2026, we declared an ordinary cash dividend of $0.47 per share of our common stock, relating to the second quarter of 2026, which was paid on July 15, 2026 to stockholders of record as of the close of business on June 30, 2026. The total amount of the cash dividend payment was approximately $10.0 million.

Current wording

During the three months ended September 30, 2026, we declared an ordinary cash dividend of $0.47 per share of our common stock, relating to the third quarter of 2026, which was paid on October 15, 2026 to stockholders of record as of the close of business on September 30, 2026. The total amount of the cash dividend payment was approximately $12.0 million.

Previous wording

During the three months ended June 30, 2026, the Company paid approximately $1.0 million of accrued dividends relating to the 234,120 restricted stock awards which vested to common shares during the period.

Current wording

During the three months and nine months ended September 30, 2026, the Company paid approximately $0 and $1.0 million of accrued dividends, respectively relating to restricted stock awards which vested to common shares during the period.

Previous wording

While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain loans, particularly those not fully collateralized by real estate. In order to mitigate that risk, our loans are generally collateralized by other assets, such as equipment, receivables, licenses or other assets of the borrowers to the extent permitted by applicable laws and regulations. In addition, we seek to impose strict loan covenants and seek personal or corporate guarantees for additional protection. As of June 30, 2026, 55.7% of our portfolio is fully secured by real estate, and 2.6% has no real estate collateral. Our portfolio on average had real estate collateral coverage of 1.2x as of June 30, 2026. Our loans are generally secured by equity pledges of the borrower and all asset liens and our portfolio had a weighted average loan to enterprise value ratio of 46.0%. As of June 30, 2025, 47.6% of our portfolio was fully secured by real estate and 2.3% had no real estate collateral. Our portfolio on average had real estate collateral coverage of 1.2x as of June 30, 2025, and a weighted average loan to enterprise value ratio of 43.2%..

Current wording

While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain loans, particularly those not fully collateralized by real estate. In order to mitigate that risk, our loans are generally collateralized by other assets, such as equipment, receivables, licenses or other assets of the borrowers to the extent permitted by applicable laws and regulations. In addition, we seek to impose strict loan covenants and seek personal or corporate guarantees for additional protection. As of September 30, 2026, 39.6% of our portfolio is fully secured by real estate, and 6.7% has no real estate collateral. Our portfolio on average had real estate collateral coverage of 0.9x as of September 30, 2026. Our loans are generally secured by equity pledges of the borrower and all asset liens and our portfolio had a weighted average loan to enterprise value ratio of 45.5%. As of September 30, 2025, 66.0% of our portfolio was fully secured by real estate and 5.6% had no real estate collateral. Our portfolio on average had real estate collateral coverage of 1.2x as of September 30, 2025, and a weighted average loan to enterprise value ratio of 43.5%.

Previous wording

The April 2026 order represents a significant shift in federal policy and is expected to be followed by additional administrative proceedings. The DEA commenced additional hearings in June 2026 to consider related regulatory considerations for adult-use cannabis, and further rulemaking, interpretive guidance, or enforcement policy statements may be issued thereafter. Closing briefs and in-person hearings, if any, are expected to occur in August 2026. As a result, the scope, implementation, and practical effects of the rescheduling action remain subject to ongoing administrative review and uncertainty.

Current wording

The April 2026 order represents a significant shift in federal policy and is expected to be followed by additional administrative proceedings addressing the rescheduling of adult use cannabis. The DEA commenced an administrative hearing on June 29, 2026 to consider whether marijuana generally, including cannabis intended for adult-use markets, should be transferred from Schedule I to Schedule III, and further rulemaking, interpretive guidance, or enforcement policy statements may be issued thereafter. The evidentiary phase of that hearing concluded on July 15, 2026, and the participants, including the DEA, filed post-hearing briefs on August 17, 2026. On September 29, 2026, the presiding administrative law judge stayed the proceeding following a motion by certain participants seeking to supplement the record with a report issued by the U.S. Government Accountability Office concerning federal drug scheduling procedures. On October 22, 2026, the administrative law judge declined to reopen the hearing record for additional testimony or discovery, admitted the report into the administrative record, and authorized supplemental briefing, with initial briefs due October 29, 2026 and reply briefs due November 5, 2026. Supplemental briefing concluded on November 5, 2026, and the administrative law judge is expected to issue a recommended decision to the Administrator of the DEA, who retains authority over any final determination. No statutory deadline governs the issuance of the recommended decision or any subsequent determination by the Administrator. As a result, the scope, implementation, and practical effects of the adult use rescheduling action remain subject to ongoing administrative review and uncertainty.

Previous wording

As of the date of this Quarterly Report, no final regulatory framework has been established with respect to cannabis rescheduling beyond the April 2026 order and June 2026 administrative hearings, and no formal action has been taken to reclassify or de-schedule adult-use cannabis. While federal authorities have initiated additional administrative proceedings, the outcome, timing, and scope of any further actions remain uncertain.

Current wording

As of the date of this Quarterly Report, no final regulatory framework has been established with respect to cannabis rescheduling beyond the April 2026 order, and no formal action has been taken to reclassify or de-schedule adult-use cannabis. While federal authorities have initiated additional administrative proceedings, including the June 2026 DEA hearing, in which no recommended decision has been issued, the outcome, timing, and scope of any further actions remain uncertain.

Previous wording

Interest income decreased by approximately $1.3 million during the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. The decrease was driven primarily by a decrease of $1.0 million in exit/success fees associated with the repayments and amendments of certain loans during the respective periods. During the second quarter of 2026, the Company recognized $0.9 million associated with amendments of its existing loans during the period. In the second quarter of 2025, the Company recognized $1.0 million related to an amendment of one of its existing loans, $0.5 million of success fees on one of its loans, and $0.4 million related to OID accelerations. Interest income from acceleration of original issue discounts and other upfront fees generated approximately $0.4 million and $0.3 million of gross interest income during the three months ended June 30, 2026 and 2025, respectively. Additionally, the weighted average YTM IRR on our portfolio decreased from 16.8% at June 30, 2025 to 15.6% at June 30, 2026, as a result of certain re-pricing amendments relating to de-risking of our portfolio and the impact of the 75 basis point prime rate decline on our floating rate portfolio during the comparative periods, resulting in a $1.3 million decrease in cash interest income, offset by an additional $0.9 million in PIK interest income.

Current wording

Interest income increased by approximately $0.2 million during the quarter ended September 30, 2026, compared to the quarter ended September 30, 2025. The increase was driven primarily by an increase in the total loan portfolio of $25.5 million period over period, which generated an additional $0.7 million of interest income. Further, the Company generated $1.3 million of additional PIK income during the third quarter of 2026 compared to 2025. These increases were offset by a decrease of $1.3 million in exit/success fees associated with the repayments and amendments of certain loans during the respective periods. During the third quarter of 2026, the Company recognized $0.2 million associated with amendments of its existing loans during the period. In the third quarter of 2025, the Company recognized $1.4 million related to amendments of its existing loans and $0.1 million of success fees on one of its loans. Further, interest income from acceleration of original issue discounts and other upfront fees generated approximately $0.4 million and $0.9 million of gross interest income during the three months ended September 30, 2026 and 2025, respectively. Finally, the weighted average YTM IRR on our portfolio decreased from 16.5% at September 30, 2025 to 15.1% at September 30, 2026, as a result of certain re-pricing amendments relating to de-risking of our portfolio and the impact of the 25 basis point prime rate decline on our floating rate portfolio during the comparative periods.

Previous wording

Interest expense remained relatively consistent over the comparative period. The increase is driven primarily by an increase in the weighted average outstanding balance on the Revolving Loan, which was approximately $67.5 million and $42.3 million, as of June 30, 2026 and 2025, respectively.

Current wording

Interest expense increased by $1.4 million over the comparative period. The increase is driven primarily by an increase in the weighted average outstanding balance on the Revolving Loan, which was approximately $95.5 million and $14.0 million, as of September 30, 2026 and 2025, respectively.

Previous wording

Management and incentive fees payable to our Manager slightly decreased over the comparative period. Management fees were approximately $1.2 million for the three months ended June 30, 2026 and 2025. The origination fee offsets in the three months ended June 30, 2026 was $108 thousand, compared to approximately $133 thousand for the three months ended June 30, 2025. Incentive fees were approximately $0.5 million for the three months ended June 30, 2026, compared to $0.8 million for the three months ended June 30, 2025.

Current wording

Management and incentive fees payable to our Manager slightly increased over the comparative period. Management fees were approximately $1.2 million for the three months ended September 30, 2026 and 2025. The origination fee offsets in the three months ended September 30, 2026 were $236 thousand, compared to approximately $83 thousand for the three months ended September 30, 2025. Incentive fees were approximately $0.6 million for the three months ended September 30, 2026, compared to $0.3 million for the three months ended September 30, 2025.

Previous wording

General and administrative expenses and professional fees increased by approximately $258 thousand for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increase was primarily due to an increase in overhead reimbursements for costs incurred by the Manager on behalf of the Company, which were approximately $1.4 million for the three months ended June 30, 2026, compared to approximately $1.1 million for the three months ended June 30, 2025.

Current wording

General and administrative expenses and professional fees increased by approximately $388 thousand for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The increase was primarily due to an increase in overhead reimbursements for costs incurred by the Manager on behalf of the Company, which were approximately $1.3 million for the three months ended September 30, 2026, compared to approximately $1.2 million for the three months ended September 30, 2025. Further, there was an increase in insurance and valuation expenses of $180 thousand over the comparative periods.

Previous wording

During the three months ended June 30, 2026, the Company recorded reserves on new originations of approximately $0.5 million, which were offset by $0.3 million of reserves which were reversed as a result of full loan repayments during the quarter. The net effect of new originations and full repayments on the CECL reserve was approximately a $0.2 million increase for the three months ended June 30, 2026.

Current wording

During the three months ended September 30, 2026, the Company recorded reserves on new originations of approximately $0.1 million. We had no full repayments during the three months ended September 30, 2026.

Previous wording

The CECL reserve relating to loans with a risk rating of "2" and "3" was $4.6 million or 1.2% of outstanding principal of such loans, as of June 30, 2026 and $1.9 million or 0.6% of outstanding principal of such loans, as of June 30, 2025. Management notes that loans risk rated "2" and "3" are generally deemed to be performing loans and generally carry similar CECL reserves.

Current wording

The CECL reserve relating to loans with a risk rating of "2" and "3" was $5.8 million or 1.5% of outstanding principal of such loans, as of September 30, 2026 and $4.6 million or 1.2% of outstanding principal of such loans, as of June 30, 2026. Management notes that loans risk rated "2" and "3" are generally deemed to be performing loans and generally carry similar CECL reserves.

Previous wording

The CECL reserve for loans included in risk rating "4" was $3.7 million or 9.8% of outstanding principal of such loans, as of June 30, 2026 and $4.7 million or 12.7% of outstanding principal of such loans, as of June 30, 2025. Loans that are risk rated "4" are high risk for potential loss and require regular monitoring.

Current wording

The CECL reserve for loans included in risk rating "4" was $5.2 million or 13.5% of outstanding principal of such loans, as of September 30, 2026 and $3.0 million or 7.4% of outstanding principal of such loans, as of September 30, 2025. Loans that are risk rated "4" are high risk for potential loss and require regular monitoring.

Previous wording

Loans remaining on non-accrual for the three months ended June 30, 2026, specifically Loan #4 and Loan #34, the CECL reserve remained flat compared to March 31, 2026. When the loans were placed on non-accrual status in December 2025, an aggregate of $0.9 million of accrued interest receivable was reversed. The non-performing nature of these loans as of June 30, 2026 is a key input to the Company's CECL analysis.

Current wording

Loans remaining on non-accrual for the three months ended September 30, 2026, specifically Loan #4 and Loan #34, the CECL reserve increased $0.1 million compared to June 30, 2026. When the loans were placed on non-accrual status in December 2025, an aggregate of $0.9 million of accrued interest receivable was reversed. The non-performing nature of these loans as of September 30, 2026 is a key input to the Company's CECL analysis.

Previous wording

Loan #36 CECL reserve decreased $1.0 million during the three months ended June 30, 2026. LTV increased to 107.2% as of June 30, 2026 from 96.4% as of March 31, 2026. The Company collected all past due interest in early April 2026 and Management kept Loan #36 on accrual status as of June 30, 2026. In May 2026, Loan #36 was amended to 0% cash, 7.5% default interest and 13.75% PIK.

Current wording

Loan #36 CECL reserve increased $1.6 million during the three months ended September 30, 2026. LTV increased to 126.1% as of September 30, 2026 from 107.2% as of June 30, 2026, primarily due to a decrease in the borrower’s enterprise value during the three months ended September 30, 2026. Management kept Loan #36 on accrual status as of September 30, 2026.

Previous wording

Interest income decreased by approximately $1.2 million during the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. The decrease was driven primarily by a decrease of $0.1 million in exit/success fees associated with the repayments and amendments of certain loans during the respective periods. Interest income from acceleration of original issue discounts and other upfront fees generated approximately $1.0 million and $0.7 million of gross interest income during the three months ended June 30, 2026 and 2025, respectively. Additionally, the weighted average YTM IRR on our portfolio decreased from 16.8% at June 30, 2025 to 15.6% at June 30, 2026, as a result of certain re-pricing amendments relating to de-risking of our portfolio and the impact of the 75 basis point prime rate decline on our floating rate portfolio during the comparative periods, resulting in a $2.1 million decrease in cash interest income, offset by an additional $0.7 million in PIK interest income.

Current wording

Interest income decreased by approximately $1.0 million during the period ended September 30, 2026, compared to the period ended September 30, 2025. The decrease was driven primarily by a decrease of $1.4 million in exit/success fees associated with the repayments and amendments of certain loans during the respective periods. Interest income from acceleration of original issue discounts and other upfront fees generated approximately $1.4 million and $1.5 million of gross interest income during the nine months ended September 30, 2026 and 2025, respectively. Additionally, the weighted average YTM IRR on our portfolio decreased from 16.5% at September 30, 2025 to 15.1% at September 30, 2026, as a result of certain re-pricing amendments relating to de-risking of our portfolio and the impact of the 25 basis point prime rate decline on our floating rate portfolio during the comparative periods, resulting in a $1.4 million decrease in cash interest income, offset by an additional $1.9 million in PIK interest income.

Previous wording

Interest expense increased over the comparative period. The increase is driven primarily by an increase in the weighted average outstanding balance on the Revolving Loan, which was approximately $67.5 million and $42.3 million, as of June 30, 2026 and 2025, respectively.

Current wording

Interest expense increased over the comparative period. The increase is driven primarily by an increase in the weighted average outstanding balance on the Revolving Loan, which was approximately $95.5 million and $14.0 million, as of September 30, 2026 and 2025, respectively.

Previous wording

Management and incentive fees payable to our Manager slightly decreased over the comparative period. Management fees were approximately $2.4 million for the six months ended June 30, 2026 and 2025. The origination fee offsets in the six months ended June 30, 2026 was $108 thousand, compared to approximately $137 thousand for the six months ended June 30, 2025. Incentive fees were approximately $1.0 million for the six months ended June 30, 2026, compared to $1.4 million for the six months ended June 30, 2025.

Current wording

Management and incentive fees payable to our Manager slightly decreased over the comparative period. Management fees were approximately $3.6 million for the nine months ended September 30, 2026 compared to $3.7 million in 2025. The origination fee offsets in the nine months ended September 30, 2026 were $343 thousand, compared to approximately $219 thousand for the nine months ended September 30, 2025. Incentive fees were approximately $1.6 million for the nine months ended September 30, 2026, compared to $1.7 million for the nine months ended September 30, 2025.

Previous wording

General and administrative expenses and professional fees increased by approximately $213 thousand for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The increase was primarily due to an increase in overhead reimbursements for costs incurred by the Manager on behalf of the Company, which were approximately $2.4 million for the six months ended June 30, 2026 compared to $2.3 million during the six months ended June 30, 2025. Further, there was an increase in consulting and legal expenses during the comparative periods by $70 thousand, partially offset by net decreases in other professional fee expenses.

Current wording

General and administrative expenses and professional fees increased by approximately $0.6 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The increase was primarily due to an increase in overhead reimbursements for costs incurred by the Manager on behalf of the Company, which were approximately $3.7 million for the nine months ended September 30, 2026 compared to $3.5 million during the nine months ended September 30, 2025. Further, there was an increase in insurance expenses, fund administration fees, and valuation expenses of $244 thousand, partially offset by net decreases in other professional fee expenses.

Previous wording

Stock based compensation expense increased slightly by approximately $0.1 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increase over the comparative period is driven by the incremental expense recognized on the 229,764 of restricted stock awards granted during 2026, which had not been granted as of June 30, 2025.

Current wording

Stock based compensation expense increased slightly by approximately $0.1 million for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The increase over the comparative period is driven by the incremental expense recognized on the 229,764 restricted stock awards granted during 2026, which had not been granted as of September 30, 2025.

Previous wording

During the six months ended June 30, 2026, the Company recorded reserves on new originations of approximately $1.1 million, which were offset by $0.5 million of reserves which existed at June 30, 2025 and were reversed as a result of full loan repayments. The net effect of new originations and full repayments on the CECL reserve was approximately a $0.9 million increase.

Current wording

During the nine months ended September 30, 2026, the Company recorded reserves on new originations of approximately $3.0 million, which were offset by $1.1 million of reserves which existed at September 30, 2025 and were reversed as a result of full loan repayments. The net effect of new originations and full repayments on the CECL reserve was approximately a $1.9 million increase.

Previous wording

The CECL reserve relating to loans with a risk rating of "2" and "3" was 4.6 million or 1.2% of outstanding principal of such loans, as of June 30, 2026 and $2.9 million or 0.8% of outstanding principal of such loans, as of March 31, 2026. Management notes that loans risk rated "2" and "3" are generally deemed to be performing loans and generally carry similar CECL reserves.

Current wording

The CECL reserve relating to loans with a risk rating of "2" and "3" was $5.8 million or 1.5% of outstanding principal of such loans, as of September 30, 2026 and $2.0 million or 0.6% of outstanding principal of such loans, as of September 30, 2025. Management notes that loans risk rated "2" and "3" are generally deemed to be performing loans and generally carry similar CECL reserves.