Stellus Capital Investment Corporation Reports Results for its Second Fiscal Quarter Ended June 30, 2025

, /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended June 30, 2025. Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended June 30, 2025, in which we earned U.S. GAAP net investment income of $0.34 per share and core net investment income of $0.35 per share. During the quarter, we funded $23 million of investments and received $32 million of repayments, resulting in a total portfolio of $986 million at fair value. We raised an additional $4 million of equity during the quarter under the at-the-market equity program. I'm also pleased to report that our investors have received a total of $306 million in distributions, equivalent to $17.35 per share, since we began operations." FINANCIAL HIGHLIGHTS($ in millions, except data relating to per share amounts and shares outstanding) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net investment income $9.56 $0.34 $11.79 $0.48 $19.35 $0.69 $22.03 $0.90 Core net investment income(1) 9.99 0.35 12.37 0.50 20.28 0.72 22.97 0.94 Net realized (loss) gain on investments (0.86) (0.03) 1.99 0.07 (6.83) (0.24) (18.39) (0.75) Net realized loss on foreign currency translation (0.02) — (0.03) — (0.05) — (0.05) — Total realized income(2) $8.68 $0.31 $13.75 $0.55 $12.47 $0.45 $3.59 $0.15 Distributions (11.36) (0.40) (10.05) (0.41) (22.45) (0.80) (19.70) (0.81) Net unrealized change in appreciation (depreciation) on investments 1.44 0.05 (5.58) (0.22) 2.63 0.09 17.92 0.73 Net unrealized change in appreciation (depreciation) on foreign currency translation 0.03 — (0.01) — 0.04 — (0.01) — Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries — — 0.38 0.02 - - 0.19 0.01 Net increase in net assets resulting from operations $10.15 $0.36 $8.54 $0.35 $15.14 $0.54 $21.69 $0.89 Weighted average shares outstanding 28,412,849 24,733,966 28,009,969 24,429,804 (1) Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements. (2) Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures. PORTFOLIO ACTIVITY($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies) As of As of June 30, 2025 December 31, 2024 Investments at fair value $985.9 $953.5 Total assets $1,034.8 $980.9 Net assets $375.4 $369.9 Shares outstanding 28,416,148 27,481,118 Net asset value per share $13.21 $13.46 Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 New investments $22.8 $66.3 $78.2 $94.9 Repayments of investments (31.6) (40.7) (46.6) (71.8) Net activity ($8.8) $25.6 $31.6 $23.1 As of As of June 30, 2025 December 31, 2024 Number of portfolio company investments 112 105 Number of debt investments 98 92 Weighted average yield of debt and other income producing investments (3) Cash 9.3 % 9.5 % Payment-in-kind ("PIK") 0.5 % 0.4 % Fee amortization 0.4 % 0.4 % Total 10.2 % 10.3 % Weighted average yield of total investments(4) Cash 8.7 % 8.9 % PIK 0.5 % 0.4 % Fee amortization 0.4 % 0.4 % Total 9.6 % 9.7 % (3) The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors. (4) The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status. Results of Operations Investment income for the three months ended June 30, 2025 and 2024 totaled $25.7 million and $26.6 million, respectively, most of which was interest income from portfolio investments. Gross operating expenses for the three months ended June 30, 2025 and 2024 totaled $17.1 million and $16.5 million, respectively. For the same respective periods, base management fees totaled $4.3 million and $3.9 million, income incentive fees totaled $2.2 million and $2.6 million, fees and expenses related to our borrowings totaled $8.7 million and $8.1 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million and $0.5 million, income tax totaled $0.4 million and $0.6 million and other expenses totaled $1.0 million and $0.8 million. The Company waived $1.0 million and $1.7 million of income incentive fees due to the total return limitation contained in the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended June 30, 2025 and 2024, respectively, for net operating expenses of $16.1 million and $14.8 million, respectively. Net investment income was $9.6 million and $11.8 million, or $0.34 and $0.48 per common share based on 28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June 30, 2025 and 2024, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended June 30, 2025 and 2024 was $10.0 million and $12.4 million, or $0.35 and $0.50 per share, respectively. For the three months ended June 30, 2025 and 2024, the Company's investment portfolio had a net change in unrealized appreciation (depreciation) of $1.4 million and ($5.6) million, respectively, and the Company had net realized (losses) gains of ($0.9) million and $2.0 million, respectively. Net increase in net assets resulting from operations totaled $10.1 million and $8.5 million, or $0.36 and $0.35 per common share, based on 28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June 30, 2025 and 2024, respectively. Liquidity and Capital Resources As of June 30, 2025, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $315.0 million on a committed basis. As of June 30, 2025 and December 31, 2024, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $350.0 million. As of June 30, 2025 and December 31, 2024, the Company had $163.1 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively. The Company issued 278,945 shares during the three months ended June 30, 2025 under the at-the-market program ("ATM Program") for gross proceeds of $3.9 million. The average per share offering price of shares issued under the ATM Program during the three months ended June 30, 2025 was $13.97. Stellus Capital Management, LLC, the Company's investment adviser (the "Advisor"), has agreed to reimburse the Company for underwriting fees to the extent the per share price of the shares to the public, less underwriting fees, was less than net asset value per share. Distributions For both the three months ended June 30, 2025 and 2024, the Company declared aggregate distributions of $0.40 per share for both periods ($11.4 million and $10.0 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital. Recent Portfolio Activity The Company invested in the following portfolio companies during the three months ended June 30, 2025: Activity Type Date Company Name Company Description Investment Amount Instrument Type Add-On Investment April 8, 2025 TriplePoint Acquisition Holdings LLC* Provider of HVAC, plumbing, and other mechanical and industrial services $ 1,773,809 Senior Secured – First Lien Add-On Investment April 25, 2025 Elliott Aviation, LLC* Provider of maintenance, repair, and overhaul and fixed-base operator services to the business aviation sector $ 57,899 Senior Secured – First Lien $ 105 Equity New Investment April 30, 2025 Gourmet Specialty Foods, LLC Provider of ready-to-cook value-added proteins to grocery retailers $ 4,270,705 Senior Secured – First Lien $ 2,847,136 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 240,595 Equity Add-On Investment May 5, 2025 FairWave Holdings, LLC* Specialty coffee platform $ 19,336 Equity Add-On Investment May 8, 2025 Unicat Catalyst Holdings, LLC* Manufacturer and distributor of catalysts and other industrial products $ 13,961 Equity Add-On Investment May 21, 2025 The Hardenbergh Group, Inc. * Provider of temporary professional staffing of medical services professionals, external peer review, consulting and physician leadership solutions $ 243,044 Equity Add-On Investment May 30, 2025 WER Holdings, LLC* Regional provider of commercial landscaping services $ 426,885 Senior Secured – First Lien $ 2,366,945 Delayed Draw Term Loan Commitment New Investment June 3, 2025 International Cybernetics Company, LP Provider of road condition assessment services and equipment' $ 4,748,003 Senior Secured – First Lien $ 3,561,003 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 105,113 Equity Add-On Investment June 4, 2025 Eskola LLC* Provider of commercial re-roofing services $ 56,349 Equity New Investment June 6, 2025 Solid Surface Care Holdings, Inc. National commercial surface care and restoration company $ 5,694,273 Senior Secured – First Lien $ 4,270,705 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 377,437 Equity Add-On Investment June 27, 2025 Monitorus Holding, LLC* Provider of media monitoring and evaluation services $ 1,722,767 Senior Secured – First Lien ________________________________ *Existing portfolio company The Company realized investments in the following portfolio companies during the three months ended June 30, 2025: Activity Type Date Company Name Company Description Proceeds Received Realized Gain (Loss) Instrument Type Full Repayment April 8, 2025 Florachem Corporation Distiller and supplier of natural citrus, pine, and specialty inputs $ 9,725,000 $ — Senior Secured – First Lien $ 53,078 $ — Delayed Draw Term Loan Commitment $ 100,000 $ — Revolver Commitment Full Realization $ 514,107 $ 151,674 Equity Restructured Investment April 9, 2025 J.R. Watkins, LLC Manufacturer and distributor of home and personal care products $ — $ (1,132,576) Equity Full Repayment May 29, 2025 Anne Lewis Strategies, LLC Provider of tech-enabled donor targeting and strategic digital fundraising services for non-profit and political organizations. $ 11,801,341 $ — Senior Secured – First Lien ________________________________ *Existing portfolio company Events Subsequent to June 30, 2025 The Company's management has evaluated subsequent events through August 6, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below. Investment Portfolio The Company invested in the following portfolio companies subsequent to June 30, 2025: Activity Type Date Company Name Company Description Investment Amount Instrument Type Add-On Investment July 1, 2025 Bart & Associates, LLC* Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry $ 303,740 Equity Add-On Investment July 28, 2025 Equine Network, LLC* Hosts competitions and provides services for the U.S. equine industry $ 2,067,538 Senior Secured – First Lien New Investment July 31, 2025 The Millennium Alliance, LLC Facilitator of peer-to-peer events connecting companies with technology solution providers $ 11,500,000 Senior Secured – First Lien $ 100,000 Revolver Commitment $ 515,556 Equity New Investment July 31, 2025 Project EC** Provider of homecare services $ 7,785,007 Senior Secured – First Lien $ 2,500,000 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 910,966 Equity Add-On Investment May 5, 2025 MedLearning Group, LLC* Provider of continuing medical education services $ 2,981,213 Senior Secured – First Lien ________________________________ *Existing portfolio company ** The name of this portfolio company is not disclosed at this time due to confidentiality restrictions. The name of this portfolio company will be disclosed in the Company's quarterly report for the quarter ending September 30, 2025. The Company realized investments in the following portfolio companies subsequent to June 30, 2025: Activity Type Date Company Name Company Description Proceeds Received Instrument Type Full Repayment July 31, 2025 Rogers Mechanical Contractors, LLC HVAC and plumbing designer, installer, and service provider for new/existing data centers, fulfilment sortation facilities, and warehouses $ 8,272,652 Senior Secured – First Lien Credit Facility The outstanding balance under the Credit Facility as of August 6, 2025 was $162.2 million. Distributions Declared On July 2, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of July 2025, August 2025, and September 2025 as follows: Ex-Dividend Record Payment Amount per Declared Date Date Date Share 7/2/2025 7/31/2025 7/31/2025 8/15/2025 $ 0.1333 7/2/2025 8/29/2025 8/29/2025 9/15/2025 $ 0.1333 7/2/2025 9/30/2025 9/30/2025 10/15/2025 $ 0.1333 Conference Call Information Stellus Capital Investment Corporation will host a conference call to discuss these results on Thursday, August 7, 2025 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary. For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 398771. Starting approximately two hours after the conclusion of the call, a replay will be available through Thursday, August 21, 2025 by dialing (877) 481-4010 and entering passcode 52804. The replay will also be available on the Company's website. For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days. About Stellus Capital Investment Corporation The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab. Forward-Looking Statements Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release. Contacts Stellus Capital Investment CorporationW. Todd Huskinson, Chief Financial Officer(713) 292-5414[email protected] STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES June 30, 2025 (unaudited) December 31, 2024 ASSETS Controlled investments at fair value (amortized cost of $32,732,016 and $17,934,808, respectively) $ 13,046,041 $ 7,652,436 Non-controlled, non-affiliated investments, at fair value (amortized cost of $957,687,672 and $943,853,898, respectively) 972,839,633 945,845,252 Cash and cash equivalents 39,991,690 20,058,594 Receivable for sales and repayments of investments 399,106 335,689 Interest receivable 5,869,109 4,947,765 Income tax receivable 2,045,697 1,301,965 Other receivables 17,500 87,995 Related party receivable — 3,687 Deferred offering costs 109,059 — Prepaid expenses 447,891 666,866 Total Assets $ 1,034,765,726 $ 980,900,249 LIABILITIES Notes Payable $ 172,310,201 $ 99,444,355 Credit Facility payable 160,622,440 172,314,315 SBA-guaranteed debentures 305,373,199 321,251,939 Dividends payable 3,787,873 3,663,233 Management fees payable 4,279,441 4,034,109 Income incentive fees payable 2,052,194 3,109,560 Interest payable 6,529,422 5,281,343 Related party payable 1,088,287 — Unearned revenue 676,290 548,626 Administrative services payable 415,810 393,513 Other accrued expenses and liabilities 2,259,679 937,316 Total Liabilities $ 659,394,836 $ 610,978,309 Commitments and contingencies (Note 7) Net Assets $ 375,370,890 $ 369,921,940 NET ASSETS Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,416,148 and 27,481,118 shares issued and outstanding, respectively) $ 28,416 $ 27,481 Paid-in capital 392,309,339 379,549,272 Total distributable loss (16,966,865) (9,654,813) Net Assets $ 375,370,890 $ 369,921,940 Total Liabilities and Net Assets $ 1,034,765,726 $ 980,900,249 Net Asset Value Per Share $ 13.21 $ 13.46 STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the three months ended For the six months ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 INVESTMENT INCOME From controlled investments: Interest income $ — $ — $ — $ 81,636 From non-controlled, non-affiliated investments Interest income 24,654,205 25,164,944 48,781,321 50,121,795 Other income 1,042,397 1,461,255 1,866,939 2,419,517 Total Investment Income $ 25,696,602 $ 26,626,199 $ 50,648,260 $ 52,622,948 OPERATING EXPENSES Management fees $ 4,279,441 $ 3,852,233 $ 8,334,167 $ 7,704,466 Valuation fees 38,507 35,711 196,396 192,218 Administrative services expenses 474,284 481,261 923,582 972,162 Income incentive fees 2,158,075 2,542,530 4,294,566 5,051,640 Professional fees 312,808 196,205 730,839 535,832 Directors' fees 93,250 114,250 204,500 222,500 Insurance expense 98,668 125,489 195,758 250,478 Interest expense and other fees 8,680,015 8,116,497 16,943,034 15,884,070 Income tax expense 428,951 574,037 928,498 944,756 Other general and administrative expenses 500,302 417,867 718,653 663,142 Total Operating Expenses $ 17,064,301 $ 16,456,080 $ 33,469,993 $ 32,421,264 Income incentive fee waiver (928,926) (1,622,542) (2,171,769) (1,826,893) Total Operating Expenses, net of fee waivers $ 16,135,375 $ 14,833,538 $ 31,298,224 $ 30,594,371 Net Investment Income $ 9,561,227 $ 11,792,661 $ 19,350,036 $ 22,028,577 Net realized loss on controlled investments $ (1,132,576) $ — $ (1,132,576) $ — Net realized gain (loss) on non-controlled, non-affiliated investments 272,549 1,992,482 (5,694,672) $ (18,392,249) Net realized loss on foreign currency translations (20,003) (29,789) (49,658) (54,895) Net change in unrealized appreciation on controlled investments 1,290,491 138,189 1,345,767 674,759 Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments 143,176 (5,724,870) 1,281,193 17,257,150 Net change in unrealized appreciation (depreciation) on foreign currency translations 30,546 (5,887) 38,865 (9,489) Benefit for taxes on net unrealized depreciation on investments — 381,500 — 188,893 Net Increase in Net Assets Resulting from Operations $ 10,145,410 $ 8,544,286 $ 15,138,955 $ 21,692,746 Net Investment Income Per Share—basic and diluted $ 0.34 $ 0.48 $ 0.69 $ 0.90 Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted $ 0.36 $ 0.35 $ 0.54 $ 0.89 Weighted Average Shares of Common Stock Outstanding—basic and diluted 28,412,849 24,733,966 28,009,969 24,429,804 Distributions Per Share—basic and diluted $ 0.40 $ 0.41 $ 0.80 $ 0.81 STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited) Common Stock Total Number Par Paid-in distributable of shares value capital (loss) Net Assets Balances at December 31, 2023 24,125,642 $ 24,125 $ 335,918,984 $ (16,003,321) $ 319,939,788 Net investment income — — — 10,235,916 10,235,916 Net realized loss on investments — — — (20,384,731) (20,384,731) Net realized loss on foreign currency translations — — — (25,106) (25,106) Net change in unrealized appreciation on investments — — — 23,518,590 23,518,590 Net change in unrealized depreciation on foreign currency translations — — — (3,602) (3,602) Provision for taxes on unrealized appreciation on investments — — — (192,607) (192,607) Distributions from net investment income — — — (9,647,844) (9,647,844) Balances at March 31, 2024 24,125,642 $ 24,125 $ 335,918,984 $ (12,502,705) $ 323,440,404 Net investment income — — — 11,792,661 11,792,661 Net realized gain on investments — — — 1,992,482 1,992,482 Net realized loss on foreign currency translations — — — (29,789) (29,789) Net change in unrealized depreciation on investments — — — (5,586,681) (5,586,681) Net change in unrealized depreciation on foreign currency translations — — — (5,887) (5,887) Benefit for taxes on unrealized depreciation on investments — — — 381,500 381,500 Distributions from net investment income — — — (10,049,073) (10,049,073) Issuance of common stock, net of offering costs(1) 1,855,356 1,856 25,248,020 — 25,249,876 Balances at June 30, 2024 25,980,998 $ 25,981 $ 361,167,004 $ (14,007,492) $ 347,185,493 Balances at December 31, 2024 27,481,118 $ 27,481 $ 379,549,272 $ (9,654,813) $ 369,921,940 Net investment income — — — 9,788,809 9,788,809 Net realized loss on investments — — — (5,967,221) (5,967,221) Net realized loss on foreign currency translations — — — (29,655) (29,655) Net change in unrealized appreciation on investments — — — 1,193,293 1,193,293 Net change in unrealized depreciation on foreign currency translations — — — 8,319 8,319 Distributions from net investment income — — — (11,087,389) (11,087,389) Issuance of common stock, net of offering costs(1) 656,085 656 8,937,430 — 8,938,086 Balances at March 31, 2025 28,137,203 $ 28,137 $ 388,486,702 $ (15,748,657) $ 372,766,182 Net investment income — — — 9,561,227 9,561,227 Net realized loss on investments — — — (860,027) (860,027) Net realized loss on foreign currency translations — — — (20,003) (20,003) Net change in unrealized appreciation on investments — — — 1,433,667 1,433,667 Net change in unrealized appreciation on foreign currency translations — — — 30,546 30,546 Distributions from net investment income — — — (11,363,618) (11,363,618) Issuance of common stock, net of offering costs(1) 278,945 279 3,822,637 — 3,822,916 Balances at June 30, 2025 28,416,148 $ 28,416 $ 392,309,339 $ (16,966,865) $ 375,370,890 STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the six months ended June 30, 2025 June 30, 2024 Cash Flows from Operating Activities Net increase in net assets resulting from operations $ 15,138,955 $ 21,692,746 Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: Purchases of investments (78,230,159) (94,854,139) Proceeds from sales and repayments of investments 46,638,287 71,824,905 Net change in unrealized appreciation on investments (2,626,960) (17,931,909) Net change in unrealized (appreciation) depreciation on foreign currency translations (38,865) 9,490 Increase in investments due to PIK (2,492,551) (1,555,868) Amortization of premium and accretion of discount, net (1,437,223) (1,383,624) Deferred tax benefit — (188,893) Amortization of loan structure fees 634,745 544,379 Amortization of deferred financing costs 303,468 222,747 Amortization of discount on Notes Payable 31,434 — Amortization of loan fees on SBA-guaranteed debentures 371,260 550,059 Net realized loss on investments 6,827,248 18,392,249 Changes in other assets and liabilities Increase in interest receivable (921,344) (2,780,809) Increase in income tax receivable (743,732) (585,741) Decrease (increase) in other receivables 70,495 (92,671) Decrease in related party receivables 3,687 — Decrease in prepaid expenses 218,975 193,937 Increase (decrease) in management fees payable 245,332 (2,066,303) Decrease in income incentive fees payable (1,057,366) (1,450,096) Increase in administrative services payable 22,297 24,023 Increase in interest payable 1,248,079 7,256 Increase in related party payable 1,088,287 337,500 Increase in unearned revenue 127,664 174,518 Increase in other accrued expenses and liabilities 1,322,363 268,894 Net Cash Used in Operating Activities $ (13,255,624) $ (8,647,350) Cash Flows from Financing Activities Proceeds from the issuance of common stock $ 13,153,366 $ 25,777,185 Sales load for common stock issued (197,464) (386,987) Offering costs paid for common stock issued (303,959) (133,010) Stockholder distributions paid (22,326,367) (16,233,650) Proceeds from issuance of Notes Payable 75,000,000 — Discount from issuance of Notes Payable (770,250) — Financing costs paid on Notes Payable (1,698,806) — Repayments of SBA-guaranteed debentures (16,250,000) — Financing costs paid on Credit Facility — (66,348) Borrowings under Credit Facility 104,400,000 104,400,000 Repayments of Credit Facility (117,817,800) (94,967,800) Net Cash Provided by Financing Activities $ 33,188,720 $ 18,389,390 Net Increase in Cash and Cash Equivalents $ 19,933,096 $ 9,742,040 Cash and Cash Equivalents Balance at Beginning of Period $ 20,058,594 $ 26,125,741 Cash and Cash Equivalents Balance at End of Period $ 39,991,690 $ 35,867,781 Supplemental and Non-Cash Activities Cash paid for interest expense $ 14,354,048 $ 14,559,629 Income and excise tax paid 1,672,230 1,530,497 Increase in distributions payable 124,640 3,463,267 Increase (decrease) in deferred offering costs 109,059 (7,312) Exchange of investments 1,663,301 8,256,411 Reconciliation of Core Net Investment Income(1) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net investment income $9,561,227 $11,792,661 $19,350,036 $22,028,577 Income tax expense 428,951 574,037 928,498 944,756 Core net investment income $9,990,178 $12,366,698 $20,278,534 $22,973,333 Per share amounts: Net investment income per share $0.34 $0.48 $0.69 $0.90 Core net investment income per share $0.35 $0.50 $0.72 $0.94 Reconciliation of Realized Net Investment Income(2) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net investment income $9,561,227 $11,792,661 $19,350,036 $22,028,577 Net realized loss on investments (860,027) 1,992,482 (6,827,248) (18,392,249) Net realized loss on foreign currency translation (20,003) (29,789) (49,658) (54,895) Total realized net investment income $8,681,197 $13,755,354 $12,473,130 $3,581,433 Per share amounts: Net investment income per share $0.34 $0.48 $0.69 $0.90 Realized net investment income per share $0.31 $0.55 $0.45 $0.15 SOURCE Stellus Capital Investment Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Stellus Capital Investment Corporation Reports Results for its Second Fiscal Quarter Ended June 30, 2025

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