TRLC 10-K & 10-Q changes, risk factors and insider trading

AsA portion of December 31, 2024, 3.4% of the fair value of the Company’s totalour investments bore interest at floating rates based on SOFR,the Secured Overnight Financing Rate ("SOFR"), serving as an alternative rate designated by the Company following the discontinuation of LIBOR.London interbank offered rate (“LIBOR”), which was phased out completely in June 2023. In July 2023, the Company's legacy loans transitioned from LIBOR to Synthetic LIBOR, which was in effect until September 30, 2024. The Company's legacy loans have transitioned to SOFR following the complete phase-out of LIBOR as of September 30, 2024. The discontinuation of both LIBOR and Synthetic LIBOR and the use of alternative rates, such as SOFR, could result in interest rate decreases on our debt,investments, which could adversely affect our cash flow, operating results and ability to make distributions to our unitholders at expected levels or at all.

From time to time, our board of managers may change the amount of distributions that are paid, if paid at all. For example, the daily distribution rate was reduced in March 2018 and was further reduced as of May 1, 2021. Since our NAV per unit can vary from quarter to quarter, if our board of managers continues to authorize daily distributions at an annualized rate that is based on our most recently determined NAV per unit, it is likely that the per unit dollar amount of distributions paid to our unitholders will similarly vary. For the year ended December 31, 2023, we paid distributions to unitholders for the months of January through June 2023, but we did not pay the distributions on our regular cadence and instead paid some of the distributions months after the month to which the distributions related. We did not resume the payment of regular monthly distributions for the year ended December 31, 2024, but paid two special distributions to unitholders in February and March 2024. No distributions have been paid since the two special distributions. We cannot provide any assurances as to when or if we will pay any additional distributions to our unitholders.

If any future debt arrangements are collateralized with shares of the Company’s subsidiary that holds all of the Company’s assets, and if we default on our payments, our credit holders will have rights against such collateral, thereby reducing our asset base and the income we receive from such investments. As of December 31, 2024,2025, we had noapproximately $2.9 million in total debt outstanding.outstanding, solely related to the repurchase obligation (see Note 5. Contingencies and Related Parties for additional information).

Some of our financing arrangements may require us to make a lump-sum or “balloon” payment at maturity. Our ability to make a balloon payment at maturity will be uncertain and may depend upon our ability to obtain additional financing. At the time the balloon payment is due, we may or may not be able to refinance the balloon payment on terms as favorable as the original financing. The effect of a refinancing could affect the rate of return to our unitholders. In addition, payments of principal and interest made to service our debts, including balloon payments, may reduce our ability to make distributions to our unitholders. As of December 31, 2025, we had approximately $2.9 million in total debt outstanding, solely related to the repurchase obligation (see Note 5. Contingencies and Related Parties for additional information).

Our investment strategy contemplates investing primarily in debt and equity instruments issued by foreign companies. During 20242025 and 2023,2024, we havehad madeexisting loans to companies located in Argentina, Botswana, Brazil, Cabo Verde, Cameroon, Chile, Colombia, Ecuador, Hong Kong, Indonesia, Kenya, Malaysia, Mexico, Morocco, Namibia, Netherlands, Nigeria, Peru, Romania, Singapore, United Arab Emirates, and Uganda. Investing in foreign companies may expose us to additional risks not typically associated with investing in U.S. companies. These risks include the economic disruption and 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 U.S., 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. Moreover, actions by the new U.S. presidential administration may introduce various risks,government, including changes in trade policy, tariffs, tax policies,laws, trade conflicts, and sanctionssanctions, or restrictions on specific countries or companiescompanies, whichas well as geopolitical developments such as the Russia-Ukraine war and conflicts and instability in the Middle East, could adversely affect the profitability of our non-U.S. investments.

For investmentinvestments denominated in U.S. dollars, if the U.S. dollar rises, it may become more difficult for borrowers to make loan payments if the borrowers are operating in markets where the local currencies are depreciating relative the U.S. dollar.

Such sanctions prohibit, among other things, transactions with, and the provision of services to, certain non-U.S. countries, territories, entities and individuals who have been placed on the sanctions list administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). In addition, certain programs administered by OFAC prohibit dealing with individuals or entities in certain countries or subject to certain sanction programs regardless of whether such individuals or entities appear on the lists maintained by OFAC, which may make it more difficult for us and our sub-advisors to identify sanctioned parties and prevent dealings with them or significantly restrict or limit investment activities in certain jurisdictions. Furthermore, President Trump's imposition of tariffs on such non-U.S. countries and any retaliatory measures taken by those countries may prohibit or discourage us from transacting with or in those countries.

We are subject to the FCPA, which generally prohibits U.S. companies from engaging in bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining business. Foreign companies, including potential competitors, are not subject to these prohibitions. Fraudulent practices, including corruption, extortion, bribery, pay-offs, theft and others, occur from time-to-time in countries in which we may do business. If people acting on our behalf or at our request are found to have engaged in such practices, severe penalties and other consequences could be imposed on us that may have a material adverse effect on our business, results of operations, cash flows and financial condition, our ability to make distributions to you and the value of your investment. On February 10, 2025, President Trump issued an executive order ceasing the commencement of any new FCPA investigations or enforcement actions for a period of 180 days while the Attorney General conducts a review and issues revised enforcement guidelines regarding the FCPA. The outcome of the Attorney General's review and whether enforcement actions and investigations will be resumed following such 180-day period is uncertain.

Whether a company is an investment company can involve analysis of complex laws, regulations and SEC staff interpretations. We intend to conduct the Company’s operations so as not to become subject to regulation as an investment company under the Investment Company Act. So long as the Company conducts its businesses directly and through its wholly-owned or majority-owned subsidiaries that are not investment companies and none ofneither the Company andnor the wholly-owned or majority-owned subsidiaries hold themselves out as being engaged primarily in the business of investing in securities, the Company should not have to register. The securities issued by any subsidiary that is excepted from the definition of investment company under Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act, together with any other “investment securities” (as used in the Investment Company Act) its parent may own, may not have a combined value in excess of 40% of the value of the parent entity’s total assets on an unconsolidated basis (which we refer to as the 40% test). In other words, even if some interests in other entities were deemed to be investment securities, so long as such investment securities do not comprise more than 40% of an entity’s assets, the entity will not be required to register as an investment company. If an entity held investment securities and the value of these securities exceeded 40% of the value of its total assets, and no other exemption from registration was available, then that entity might be required to register as an investment company.

The units sold will not be listed on an exchange for the foreseeable future, if ever. Our unit repurchase program is suspended, other than with respect to repurchase requests made in connection with the death or disability of a unitholder. Therefore, it will be difficult for our unitholders to sell their units and, if they are able to sell their units, they will likely sell them at a substantial discount. Our units are generally illiquid.

Our units are illiquid assets for which there is not expected to be any secondary market nor is it expected that any will develop in the future. Moreover, our unitholders should not rely on our unit repurchase program as a method to sell units promptly because our unit repurchase program includes numerous restrictions that limit the unitholders’ ability to sell their units to us, and our board of managers may amend, suspend or terminate our unit repurchase program at any time. In particular, the unit repurchase program provides that we may make repurchase offers only if our unitholders have held our units for a minimum of one year, we have sufficient funds available for repurchase from our distribution reinvestment planDRP and to the extent the total number of units for which repurchase is requested in any 12 month period does not exceed 5% of our weighted average number of outstanding units as of the same date in the prior 12 month period. Therefore, it will be difficult for our unitholders to sell their units promptly or at all. We were not able to fulfill all repurchase requests submitted during the year ended December 31, 2022 because they exceeded the limitations of the program and we repurchased a pro rata amount of the unitholders’ requests. Given that the Company had not yet filed its Annual Report on Form 10-K for the year ended December 31, 2022 with the SEC as of March 31, 2023, the Company temporarily suspended the private placement, the Distribution Reinvestment Plan ("DRP") and the unit repurchase program effective April 1, 2023. The private placement was terminated on November 29, 2024. The Company's unit repurchase program has been reinstated,reinstated buteffective onlySeptember 1, 2024, solely with respect to repurchase requests made in connection with the death or disability of a unitholder. However, per the terms of the unit repurchase program, we generally limit redemptions to the proceeds from the issuance of additional units under the DRP. We have not paid distributions since we paid two special distributions in early 2024, so there have not been any distributions to reinvest pursuant to the DRP, and accordingly, no DRP proceeds to fund repurchases under the unit repurchase program. See “Part II, Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” for more information. If our unitholders are able to sell their units, they may only be able to sell them at a substantial discount from the price they paid. Investor suitability standards imposed by certain states may also make it more difficult to sell units to someone in those states.

Our unitholders will incur immediate dilution, which will be substantial, equal to the costs of any offering associated with the sale of units. This means that the investors who have or will purchase units will pay a price per unit that substantially exceeds the amount available with which to purchase assets and therefore, the value of these assets upon purchase. As of December 31, 2024,2025, we have incurred a cumulative total of approximately $17.3 million in offering costs which hashave been reimbursed to our Sponsor.

Our unitholders do not have preemptive rights. If, as expected, we engage in a subsequent offering of units or securities convertible into units, issue units pursuant to our distribution reinvestment planDRP or otherwise issue additional units, investors who purchase units in this offering who do not participate in those other securities issuances will experience dilution in their percentage ownership of our outstanding units. Furthermore, unitholders may experience a dilution in the value of their units depending on the terms and pricing of any unit issuances and the value of our assets at the time of issuance.

Terrorist acts, military conflicts, includingacts of war, geopolitical instability or national disasters have resulted in, and may continue to result in, significant economic and political uncertainty and global economic instability. Such risks include, among others, the ongoing conflict between Russia and Ukraine, the Red Sea crisis precipitated by Yemen's Houthi movementUkraine and the Israel-Hamas war, acts of war or national disasters have created, and continue to create, economic and political uncertainties and have contributed to global economic instability. This risk may be magnified in the case of the conflict between Russia and Ukraine, due to the significantrelated sanctions and other restrictive actionsmeasures; takenconflicts againstinvolving RussiaIran, byIsrael, and the U.S.United States of America; disruptions to global shipping and trade routes, including in the Red Sea region, heightened tensions involving China and Taiwan, and other countriesevolving ingeopolitical response to Russia’s February 2022 invasion of Ukraine, as well as the cessation of all business in Russia by many global companies.conditions. Future terrorist activities, civil war, military or security operations, or national disasters could further weaken the domestic/global economies and create additional uncertainties in the regions in which we may invest, which may negatively impact the businesses in which we invest directly or indirectly and, in turn, could have a material adverse impact on our business, operating results and financial condition. Losses from terrorist attacks and national disasters are generally uninsurable.

A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity, or availability of our information resources. More specifically, a cyber incident is an intentional attack or an unintentional event that can include gaining unauthorized access to systems to disrupt operations, corrupt data, or steal confidential information. With increasingly sophisticated cybersecurity threats and attacks becoming more frequent globally, we are more susceptible to operational and information security risks resulting from breaches in cybersecurity. The primary risks that could directly result from the occurrence of a successful cyber incident include operational interruption, damage to our reputation and business relationships, and compromise or corruption of our confidential information. In addition, our third-party service providersproviders, including contractors, consultants, custodians, administrators, sub-advisors, borrower companies, suppliers with whom we conduct business are also subject to cybersecurity threats. In many cases, we must rely on the controls and safeguards put in place by such third parties to defend against, respond to, and report these incidents, and we cannot provide any assurances that confidential information will not be compromised should they become exposed to a cybersecurity incident. See "Part I, Item 1C. Cybersecurity" for information about our cybersecurity policies and practices.

We make impact investments in SMEs that provide the opportunity to achieve both competitive financial returns and positive measurable impact. We were organized as a Delaware limited liability company on April 30, 2012. We have operated and intend to continue to operate our business in a manner that will permit us to maintain our exemption from registration under the Investment Company Act of 1940, as amended. We usehave used the proceeds raised from the issuance of units to invest in SMEs through local market sub-advisors in a diversified portfolio of financial assets, including direct loans, loan participations, convertible debt instruments, trade finance, structured credit and preferred and common equity investments. A substantial portion of our assets consists of collateralized private debt instruments, which we believe offer opportunities for competitive risk-adjusted returns and income generation. We are externally managed and advised by TriLinc Advisors, LLC, or the Advisor. The Advisor is an investment advisor registered with the SEC.

We commenced the Offering on February 25, 2013. Pursuant to the Offering, we were offering on a continuous basis up to $1.5 billion in units of our limited liability company interest, consisting of up to $1.25 billion of units in the primary offering consisting of Class A and Class C units at initial offering prices of $10.00 and $9.576 per unit, respectively, and Class I units at $9.025 per unit, and up to $250 million of units pursuant to our Distribution Reinvestment Plan. SC Distributors, LLC, formally known as StratCap Securities, was the dealer manager for the Offering.DRP. In May 2012, the Advisor purchased 22,161 Class A units for aggregate gross proceeds of $200,000. On June 11, 2013, we satisfied the minimum offering requirement of $2,000,000 when the Sponsor purchased 321,330 Class A units for aggregate gross proceeds of $2,900,000 and we commenced operations. The Offering terminated on March 31, 2017. Through the termination of the Offering, we raised approximately $361,776,000 in gross proceeds, including approximately $13,338,000 raised through our Distribution Reinvestment Plan.DRP.

For the period from April 1, 2017 to November 29, 2024, the Company raised an additional $99,753,000 pursuant to a private placement offering. The Company’s private placement offering terminated on November 29, 2024. Upon termination of the primary portion of the Offering, we registered $75 million in Class A, Class C and Class I units to continue to be offered pursuant to our Distribution Reinvestment PlanDRP to the investors who have purchased units in the Offering. Units issued pursuant to our Distribution Reinvestment PlanDRP are offered at the price equal to the net asset value per unit of each class of units, as most recently disclosed by the Company in a public filing with the SEC at the time of reinvestment. Our Distribution Reinvestment PlanDRP was amended, effective May 25, 2020, to allow holders of all classes of units other than Class Z units to participate, including holders who purchased units in our private placements. The offering must be registered or exempt from registration in every state in which we offer or sell units. If the offering is not exempt from registration, the required registration generally is for a period of one year. Therefore, we may have to stop selling units in any state in which the registration is not renewed annually and the offering is not otherwise exempt from registration.

From our inception tothrough December 31, 2024,2025, we have issued an aggregate of 56,404,318approximately 56,404,000 of our units, including 8,179,306 units issued under our Distribution Reinvestment Plan,DRP, for gross proceeds of approximately $515,089,000 including approximately $66,897,000 reinvested under our Distribution Reinvestment PlanDRP (before dealer manager fees of approximately $4,801,000 and selling commissions of $16,862,000), for net proceeds of $493,427,000. We have not issued any units since the first quarter of 2023.

Over the lastpast threeseveral years, the global economy weathered tighter monetary policy triggered by high inflation better than most economists originally forecasted, particularly the United States. However, growth expectations were modestly revised downward during the year ended December 31, 2025. Many of the Company’s borrowers experienced significant negative effects during the 2020 - 2022 period, due to higher operating costs and supply chain issues that began in 2020 with the onset of the COVID-19 pandemic, which were further exacerbated by the conflict between Russia and Ukraine. Fortunately, most supply side conditions normalized in 2023, providing some economic relief to borrower companies. However, the combination of pandemic period effects, in many cases, had devastating and long-lasting impacts on the businesses, financial condition and results of operations of several borrower companies. Together, these factors have made it more difficult for borrowers to repay their obligations to the Company in a timely manner or at all, resulting in the Company experiencing inconsistent cash flows. The Company believes that the central issue driving results is the fact that many borrower companies arecontinue strugglingto struggle to recover from the compound impact of approximately three years of economic hardship,hardship stemming from the COVID-19 pandemic from 2020 to 2022, while current macroeconomic conditions are not strong enough for borrower companies to achieve a rapid and significant recovery in operating performance. The prospectU.S. ofgovernment significanthas imposed, and may in the future increase, tariffs imposedon byspecific thecountries newand U.S.commodities. presidentialIn administration onresponse, certain non-U.S. countries have imposed or may impose retaliatory tariffs. The foregoing has created significant uncertainty about the future relationship between the United States and certain other countries with respect to trade policies, treaties and new and increased tariffs. Such uncertainty may be further exacerbated by ongoing geopolitical tensions and conflicts, including the continuing Russia-Ukraine conflict, conflicts and instability in the Middle East, and broader geopolitical competition among major global economies, which have contributed to volatility in global energy markets, supply chains, commodity prices and financial markets. These developments, and the potentialcontinued foruncertainty, reciprocalmay retaliatory tariffs ishave a criticalmaterial near-termadverse macroeconomiceffect riskon factorglobal thateconomic couldconditions negativelyand affectthe stability of global financial markets. As of December 31, 2025, material direct effects on the Company's borrowers.borrowers Indeed,have althoughbeen limited to a few select cases, as many announced tariffs remained suspended through the end of 2025. The Company’s NAV per unit increaseddecreased by approximately $0.17$0.18 as of December 31, 2024,2025, compared to the NAV per unit as of December 31, 2023,2024. theThe increasedecrease in NAVnet reflectsasset thevalue cumulativeper effectunit ofresulted severalfrom factors,further includingunrealized thelosses gradual ramp-up of trading activities byfor some of the Company's borrowers,most globalimpaired economicborrowers conditions,who have struggled to regain their footing since the COVID-era supply chain breakage normalized three years ago. While inflation trends eased in many developed economies, the persistence of core inflation and uncertainty around monetary policy timing continues to contribute to a fragmented global outlook. In developing economies, macroeconomic conditions varied widely, with some regions benefitting from earlier monetary easing and others still constrained by weak external demand. However, with respect to the dramaticunrealized riselosses inrecorded interest rates, most of which precededduring the year ended December 31, 2024.2025, we do not believe that specific macroeconomic conditions were not the primary driver directly affecting the relevant borrowers.

The combination of weakened borrower companies, still attempting to recover from the historically bad 2020-2022 pandemic/broken supply chain period, and weakened demand in the current macro-economic environment, has made it challenging for the Company’s borrowers to repay their obligations to the Company, as discussed above. As a result of the inconsistent cash flows generated from the Company’s existing portfolio, the Company has experienced decreased liquidity, which, among other things, may continue to impact the Company’s ability to pay distributions to its unitholders or meet other Company obligations. Additionally, due to an event of default triggered under the Company’s credit facilities as a result of the resignation of the Company’s former independent registered public accounting firm in February 2023, which rendered the Company unable to timely file its Annual Report on Form 10-K for the year ended December 31, 2022, the Company entered into a Waiver and Agreement, dated as of May 9, 2023, pursuant to which the Company agreed to accelerate its repayment of the $18 million outstanding under the credit facilities. Pursuant to the terms of the Waiver and Agreement, the Company repaid the amounts outstanding under the credit facilities in full on August 31, 2023. Accordingly, the Company expects that in the near term it will experience additional significant constraints on its liquidity. As a result, with the exception of special distributions paid to unitholders in February 2024 and March 2024, the Company did not pay monthly distributions for periods subsequent to June 2023 and anticipates that it may not be able to pay regular monthly distributions in the coming quarter.quarters. In addition, the Company’s unit repurchase program, which was suspended effective April 1, 2023, has been reinstated, but only with respect to repurchase requests made in connection with the death or disability of a unitholder.unitholder and remains subject to the other terms and limitations of the program, which generally limit funds available for redemption to proceeds from our DRP. Since we have not paid distributions since early 2024, there have not been any proceeds from our DRP. Our NAV per unit as of December 31, 20242025 is higher than it would have been if the Company had continued to paypaid regular monthly distributions throughoutduring 2024.the year ended December 31, 2025.

The Company intends to continue exploring and pursuing multiple strategies in order to address its temporary liquidity needs, which may include the sale of all or a portion of certain investments,investments and seeking to obtain new credit facilities and the pursuit of additional financing transactions as needed to supplement cash flows.facilities. For example, during 2024,the year ended December 31, 2025, the Company sold a portion of its remaining investment in HINV,TriLinc S.A.Peru DE C.V.S.A.C. to TriLinc Global Impact Fund II, Master, Ltd., an entity whose advisor is under common ownership with the Company's AdvisorAdvisor, for a sale price of $2$1.0 millionmillion, as well as entered into multiple settlement agreements, which are expected to close and soldprovide athe portionCompany ofwith its investmentliquidity in TriLinc2026. PeruThere S.A.C.can be no assurances as to anwhen entityor whoseif advisorthe isCompany underwill commonreceive ownershippayment with therespect Company'sto Advisorthese forsettlement a sale price of $1 million.agreements.

Investments will continue to be primarily credit facilities and participations in credit facilities to developing economy SMEs, including trade finance and term loans, through the Advisor’s team of professional sub-advisors with a local presence in the markets where they invest. As of December 31, 2024,2025, more than a majoritysome of our investments were in the form of participations, and we expect that some of our future investments will continue to be primarilyin the form of participations. We typically provide financing that is collateralized, has a short to medium-term maturity and is self-liquidating through the repayment of principal. Our counterparty for certain participations generally will beis the respective sub-advisor or its affiliate that originates the loan in which we are participating. WeIn such case, we will not have a contract with the underlying borrower and therefore, in the event of default, we will not have the ability to directly seek recovery against the collateral and instead will have to seek recovery through our sub-advisor counterparty, which increases the risk of full recovery.

Since we anticipate that the majority of our assets will continue to consist of trade finance instruments and term loans, we expect that the majority of our revenue will continue to be generated in the form of interest.interest income. Our senior and subordinated debt investments may bear interest at a fixed or floating rate. Interest on debt securities is generally payable monthly, quarterly or semi-annually. In some cases, some of our investments provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued but unpaid interest generally is due at the maturity date. In addition, we generate revenue in the form of acquisition and other fees in connection with some transactions. Original issue discounts and market discounts or premiums are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans and debt securities as interest income. Dividend income, if any, will be recognized on an accrual basis to the extent that we expect to collect such amounts.

At December 31, 20242025 and 2023,2024, the Company’s investment portfolio included 28 and 32 companies, respectively, and the fair value of our portfolio was comprised of the following:

As of December 31, 2024,2025, the weighted average contractual yields, based upon the cost of our portfolio, on trade finance participations, term loan participations, senior secured term loans, and convertible notes were 7.6%,9.7%, 13.3%,14.3%, 15.6%,16.1%, and 11.8%, respectively, for a weighted average contractual yield on investments of approximately 12.6%13.5% on our total portfolio.

As of December 31, 2023,2024, the weighted average contractual yields, based upon the cost of our portfolio, on trade finance participations, term loan participations, senior secured term loans, and convertible notes were 10.6%,7.6%, 12.7%,13.3%, 15.2%,15.6%, and 11.8%, respectively, for a weighted average contractual yield on investments of approximately 12.4%12.6% on our total portfolio.

The Company monitors and reviews the performance of its investments and if the Company determines that there are any significant changes in the credit and collection risk of an investment, the investment will be placed on the Watch List. The Company places an investment on the Watch List when it believes the investment has a material performance weakness driven by company-specific and macro events that may affect the timing of future cash flows. For all Watch List investments, the Company evaluates: (i) liquidation value of collateral; (ii) rights and remedies enforceable against the borrower; (iii) any credit insurance and/or guarantees; (iv) market, sector and macro events and (v) other relevant information (e.g., third party purchase of the borrower and potential or ongoing litigation). At December 31, 2025, 19 portfolio companies were on non-accrual status with an aggregate fair value of approximately $134,642,632 or 51.3% of the fair value of the Company’s total investments. At December 31, 2024, 14 portfolio companies were on non-accrual status with an aggregate fair value of approximately $100,342,070 or 37.4% of the fair value of the Company’s total investments. AtAs of December 31, 2023,2025 18and portfolio2024, companiesthe wereCompany onhad non-accrual22 statusand with19 anWatch aggregateList fairinvestments, valuerespectively, ofrepresenting approximately57.1% $104,441,067and or57.2%, 39.9%respectively, of the fair value of the Company’sCompany's total investments. Interest income not recorded relative to the original terms of the loans to the companies on non-accrual status amounted to approximately $17,419,000 and $15,204,000, respectively for the years ended December 31, 2024 and 2023. As of December 31, 2024 and 2023, the Company had 19 and 23 Watch List investments, respectively.

IIG was the sub-advisor with respect to certain investments that the Company made in South America, including five5 of the 1922 Watch List investments as of December 31, 2024.2025. Since June 30, 2018, the Company has discovered, among other things, that IIG failed to provide the Company with complete and accurate information with respect to the investments for which IIG was the sub-advisor and, in 2017, sold the Company a $6 million participation in a loan to Nacadie (defined below) that did not exist. In November of 2019, the SEC charged IIG with fraud and revoked IIG’s registration. Shortly thereafter, IIG ceased all operations. A fund managed by IIG, which sold most of the participations to the Company, was placed into bankruptcy in January 2020. Subsequently, the Company filed a bankruptcy claim against the remaining assets of the estate.

IIG previously informed the Company that it had been in active discussions with CAGSA and other CAGSA lenders to protect its rights under the credit facility. Additionally, IIG had previously informed the Company that IIG is a member of the creditors committee, which would determine all financial and restructuring options of CAGSA, which may include additional equity infusions by the existing shareholders. In February 2019, CAGSA disclosed that it had reached a preliminary settlement with its creditors. The administrator of IIG TOF B.V.’s bankruptcy proceedings in the Netherlands notified the Company that the settlement discussions with CAGSA’s creditors had resumed and were close to being finalized. The administrator indicated that the terms of the settlement being discussed are different from the terms that had been part of the preliminary settlement that had been reached in February 2019. The settlement is expected to result in the assumption of the entirety of CAGSA’s debt by its parent company, Molinos Cañuelas (“MolCa”), with a portion to be repaid over a ten-year period and the remaining portion to be repaid over a period of up to ten years from the proceeds of the sale of 62.5% of the outstanding interests in MolCa, which are expected to be pledged to the unsecured creditors of CAGSA and MolCa as part of the proposed settlement. On September 27, 2021, MolCa and CAGSA filed for debt restructuring in the Argentinian bankruptcy court. On March 11, 2022, IIG TOF BV filed claims on behalf of the Company for the court to recognize the amounts due. The terms of the restructuring had been widely pre-approved by the creditors group prior to the filing. Since then, there have been several iterations of the settlement terms, with each set of terms representing slightly better terms for the lenders. The final restructuring proposal was submitted on December 31, 2024. AsOn ArgentinianJuly courts were closed for the month of January31, 2025, we were advised in early March 2025 that the court and bankruptcy trustee validated that the proposal had received the creditor approvals that are legally required for the court to be able to proceed with the approval ofapproved the restructuring plan. The Company expectsreceived the courtfirst to review the case for approvalpayment of the restructuringsettlement plan.proceeds as expected in early October 2025. The second payment was subsequently received in February 2026 as expected. As the Company continued to receive settlement payments, an increase in fair value of approximately $884,000 was recognized as a result of the quarterly valuation during the year ended December 31, 2025.

In August 2019, the Company was informed by IIG’s legal counsel that the commercial court proceedings with FRIAR and Algodonera had been terminated due to the parties having reached a settlement. The Company obtained evidence that the settlement proceeds for all participant holders had been placed in an escrow account with a New York law firm. In January 2022, the largest participant holder with respect to claims against the escrow account filed an action in New York district court to release these funds to all the participant holders. In August of 2023, the court awarded the Company $4.6 million in proceeds from the escrow account. As of December 31, 2024,2025, the creditors arecontinue nowto workingwork with the IIG TOF B.V. liquidator on further claims to satisfy the remaining debt owed.

In April 2016, the Company purchased two Participations in a trade finance facility originated by IIG TOF B.V., with Sancor Cooperativas Unidas Limitada (“Sancor”), an Argentine company that distributes dairy products, as the borrower. IIG had worked with Sancor to restructure the existing loan and extended the maturity to July 29, 2019, with an annual renewal option. Since February 2019, Sancor has announced the sale of certain of its assets, which allowed it to make some payments to creditors and maintain operations, but the Company did not receive any payment as a result of those asset sales. As noted above, IIG has ceased operations and the Company has taken legal action in an attempt to recover amounts due. During the quarter ended December 31, 2020, the Company learned, in connection with certain court proceedings in the United States Bankruptcy Court for the Southern District of New York regarding a fund advised by IIG, that funds had been received in a New York bank account controlled by an affiliate of IIG and that such funds may include prior debt service payments by Sancor related to the Company’s interests in the Sancor trade finance facility. During the year ended December 31, 2021, the Company was able to obtain control of the assets in the bank account and determined that they should primarily be allocated to outstanding interest. During the year ended December 31, 2021, Sancor was engaged in ongoing negotiations with its lenders regarding a debt restructuring, including discussions with the administrator of IIG TOF B.V.’s bankruptcy proceedings in the Netherlands. During the year ended December 31, 2021, the Company received interest payments of approximately $700,000 and principal payments of approximately $198,000 from the borrower. The Company is cooperating with the lenderslender group in seeking a default judgement in a court in Argentina to take control of the collateral in an effort to facilitate negotiation with Sancor on settlement of the debt. In July 2024, a joint liquidation agreement for the warrants was executed between Sancor and the creditor group, providing for the immediate liquidation of 70% of the warrants, the proceeds of which were to be transferred to the creditors, with the remaining warrants to be liquidated, deposited into an escrow account, and paid in four equal installments starting in September 2024. In August 2024, a deposit of approximately $500,000 was transferred to an Argentinean escrow agent to be held for 9 to 12 months on behalf of all creditors, with a currency hedge in place. While a partial payment of $150,000 was paid in September 2024, Sancor has not fulfilled its installment obligations as agreed per the joint liquidation agreement. In the aggregate, Sancor has paid only approximately $650,000 of the $2.2 million owed through 2024 to the escrow account in Argentina. As a result, counsel arranged for the auction of the warrants to be recommenced;recommenced. however,However, in December 2024, Sancor requested to pause the auction process in exchange for an immediate payment of $80,000. In the interest of providing Sancor with further time to repay the debt, counsel to the lender group agreed. Sancor deposited $40,000 into the escrow account in December 2024 and advised that a second payment of $40,000 would be forthcoming in 2-3 weeks. Payment was never received, so counsel to the lender group once again began the process of auctioning the warrants. TheWhile the auction iswas expected to begin late in the first quarter or early in the second quarterhalf of 2025.2025, Inin early February 2025, Sancor filed for concurso preventivo protection (equivalent to a U.S. Chapter 11 bankruptcy filing) in Argentina,Argentina. whichIn isJune being reviewed and considered by2025, the localCompany, court.as Thepart focus will now shift to ensuring thatof the lenderslender groupgroup, isfiled properly representedclaims in the proceedingsconcurso proceeding, and in August and September 2025, Sancor filed objections to the claims. In September 2025, the Argentine court granted an extension for the concurso deadlines, extending the exclusivity period to February 9, 2026. The court further extended the timeline during the fourth quarter of 2025, setting the next deadline in May 2026. Counsel to the lender group intends to meet in-person with the judge and bankruptcy trustee in the near future. Due to the ongoing uncertainty as to the Company's ability to recover amounts due to it by Sancor, a majordecrease creditor.in fair value of approximately $144,000 was recognized during the year ended December 31, 2025.

IIG Trade Opportunities Fund B.V.ReceivableB.V. Receivable

As noted above, IIG TOF B.V. was declared bankrupt in the Netherlands, and the Company is seeking to recover amounts to which it is entitled through the bankruptcy proceedings. The Company has applied a discount to the fair value based on the risk created by the uncertainty of the ultimate resolution of the Company’s attempt to recover amounts to which it is entitled through the bankruptcy proceedings in the Netherlands. On July 25, 2024, the Company received $75,000 from the U.S. Attorney’s Office as part of a restitution settlement with David Hu and was notified that a restitution settlement with Martin Silver is still in process. On August 29, 2025, the Company received $40,726 from the U.S. Attorney’s Office as further recovery from the restitution settlement with David Hu. The Company also received immaterial proceeds in February 2026 in connection with a settlement involving Martin Silver’s spouse. As of December 31, 2025, the creditors continue to work with the IIG TOF B.V. liquidator on further claims to satisfy the remaining debt owed.

Between March 2018 and June 2018, the Company purchased three Participations totaling $15,986,369 in a trade finance facility with Producam SA (“Producam”), a Cameroon basedCameroon-based cocoa and coffee exporter, as the borrower. Repayment on these Participations has been slower than originally anticipated due to short run cash flow pressure on Producam. The original sub-advisor for this facility was Africa Merchant Capital Group (“AMC”). In the third quarter of 2018, AMC informed the Company that the borrower misapplied the proceeds from the sale of certain of its inventory to finance its own cash flow needs rather than repay the facility. AMC then began working with the borrower to restructure the facility to recover amounts due. In April 2021, Scipion replaced AMC as the sub-advisor with respect to Producam and has agreed to undertake efforts to liquidate the collateral underlying the facility in order to recover amounts due to the CompanyCompany, and the restructuring process iswas finalized. Under the new agreement, the loan was restructured with the interest rate reduced from 17.5% to 9.5% for the cocoa facility and 6.0% for the coffee facility retroactively to January 1, 2019. As part of the restructure, the Company included a PIK component which increased the principal amount. The fair value of the investment decreased during the year ended December 31, 2021 due to collections from completed cocoa and coffee shipments being slower than anticipated. As all interest was capitalized as part of the amendment, no accrued interest remains outstanding as of the date of the new agreement. During the period from April 1, 2021 through April 14, 2021 (the date the loan was restructured), $49,014 of interest income was recognized. As of December 31, 2024,2025, while the Company is continuing to work with the borrower to process and sell the remaining coffee, itrecovery is expected that recovery willto come primarily from the legal claim throughfiled in the UK courts against the collateral manager and its insurer. Due to ongoing delays, a decrease in fair value of approximately $994,000 was recognized during the year ended December 31, 2025.

In December 2017, TriLincthe Company made a $4.74 million investment in Ecsponent Holdings, Ltd. (“Ecsponent”) to finance SMEs and provide fee-based services to entrepreneurs based in Botswana through the borrower’s Business Credit Unit. Subsequently, during the third quarter of 2020, Ecsponent announced that its board of directors had launched a forensic investigation into the use of proceeds for various financial transactions executed by its former management, including the Company’s investment. The combination of misapplied financing transactions and significant poor performance by other business units of the group caused Ecsponent to seek deferment of its interest payments while it sought additional fund raising due to financial and liquidity challenges, which the Company granted in the fourth quarter of 2020. However, the COVID-19 pandemic and the resulting economic environment delayed several of the borrower’s plans and initiatives.

Throughout the first three quarters of 2022, the Company worked closely with the CEO of the group of companies Ecsponent is a part of and several of its existing creditors as part of a potential restructuring. During the fourth quarter of 2022 and the first quarter of 2023, one of the key companies in the borrower’s group was placed into judicial management, which materially increased the risk of liquidation for itself and Ecsponent. The Company remains in close contact with Ecsponent’s CEO, the group’s creditors and judicial administrators in Botswana to reach an agreement, which the Company expectsexpected to progress in future quarters. During 2024,a conversations continuedconversation with Ecsponent’s CEO aboutduring the bestthree waymonths ended June 30, 2025, the Company learned that Ecsponent will pursue a liquidation, in which case, the Company will make a creditor’s claim. In November 2025, an Ecsponent investor submitted an intervention application, effectively pausing the liquidation process. The Company continues to restructuremonitor the loan,progress possiblyof intothe liquidation filing. As a newresult entity.of Furthermore,the ongoing uncertainty regarding a portion of the payment expected to be covered through an insurance claim is underway through the Company’s sub-advisor, Scipion, and counsel is being consulted regarding the potential for claims against management for the misapplied financing as an additional source of recovery. As a result,claim, a decrease in fair value of approximately $355,000$660,000 was recognized during the year ended December 31, 2024.2025.

In 2018, the Company originally provided financing totaling approximately $10,968,000 to Agilis Partners ("Agilis"), a Ugandan company engaged in the farming, storage, processing, and trading of maize, soybean, and sunflower seeds through Scipion. This financing was refinanced into a new loan through Origin in July 2021 as part of a broader financial restructuring. Repayment on the facility has been slower than originally anticipated due to ongoing liquidity challenges of the borrower, as well as record drought conditions in Uganda. The Company and Origin agreed to a deferral of Agilis’ March 2022 interest payment and are actively working with the borrower on solutions to increase working capital, manage other creditor relationships and improve the overall financial condition of the borrower. During 2025, Origin, the borrowerborrower, and the Company continued working toward a comprehensive restructuring of Agilis’ capital structure in connection with a potential merger of Agilis with two other farms in Uganda owned by a prospective investor. In January 2026, the relevant parties executed a restructuring term sheet establishing the framework for the refinancing and restructuring of Agilis’ capital structure, including the potential conversion of a portion of lender exposure into equity interests and the separation of land ownership from operating activities. The parties are currently negotiating definitive documentation to implement the restructuring, which is expected to close in 2026, but there can be no assurance that it will close in that timeframe or at all. Similarly, there can be no assurance as to when the Company's investment in the late stages of finalizing a restructuring of the loans, whichfacility will likelybe result in the Company taking control of 100% of the equity of the borrower, with a plan to retain and incent management to achieve a successful exit in a reasonable time frame.repaid. Due to aongoing delay in restructuring,delays, a decrease in fair value of approximately $279,000$762,000 was recognized during the year ended December 31, 2024.2025.

In January 2017, the Company purchased a $15,000,000 Participation in a term loan facility with Trustco Group Holdings Ltd (“Trustco”), a Namibia based group operating a diversified set of business lines including property development, financial services (insurance, retail banking), education, and diamond mining. Repayment on this position has been slower than originally anticipated, largely due to a slowdown in the local real estate market. Helios has been actively workingworked with the borrower to restructure the facility.facility, Asbut as this has proved challenging, Helios issued a notice of default and acceleration notice to Trustco along with launching initial legal proceedings on April 15, 2020. A demand haswas also been made against Elisenheim as guarantor in respect of Trustco’s obligations to Helios.Helios as described below. In addition to recourse against Trustco, Helios has the benefit of a security interest in property owned by the guarantor. During the fourth quarter of 2021, an initial judgment was issued in Helios’ favor in the UK and Trustco appealed the court’s decision and the requirements to deposit the full outstanding balance into an escrow account. This appeal was dismissed in February 2022, and wethe areCompany's nownext seekingstep is to seek enforcement of the UK judgment in Namibia. On July 31, 2024, the local court ordered Trustco to pay Helios a total amount of 636,410.18 in Namibian dollars (approximately US$35,870) as payment for Helios to defend Trustco's legal action, which was ultimately dismissed. This will be applied toward incurred costs and future retainer for the advocate for work going forward. The judgeTrustco scheduledenforcement theproceeding hearing forwas the main applicationheld on March 18 and 19, 2025. Following the hearing, the judge indicated that a judgement was expected to be handed down by the end of July 2025. Subsequently, the judge postponed her judgement until September 19, 2025, to follow the Elisenheim hearing. On September 24, 2025, the judge granted Helios’ application to have the UK judgement recognized and enforced in Namibia. As expected by counsel, Trustco filed an appeal, and counsel filed to oppose in December 2025. Counsel continues to pursue the enforcement process and corresponding options.

A trial was held for the Elisenheim property case in Namibia from June 24, 2024 to July 5, 2024. The judge ruled in favor of the Company via Helios, and a hearing was set for July 14, 2024 during which the judge determined that the judge presiding over the case to enforce the UK judgement in Namibia should first rule on the referral relief. A case management meeting for the UK Trustco case was held on December 10, 2023, and a hearing was set for July 31, 2024 during which the judge gave Trustco time to determine if they willwould bring an application for leave. At a subsequent hearing held on November 28, 2024, the judge set trial dates forfrom September 2-12,2 to September 12, 2025. Trustco submitted an application for dismissal of the Company’s claim, which was dismissed by the court, after which Trustco formally requested a postponement of the remainder of the trial and was granted postponement until January 2026. A procedural issue delayed the trial again with the next hearing set for June 2026. Due to the increase in value of the Namibian dollar as of December 31, 2025, an increase in fair value of approximately $1.5 million was recognized for the year ended December 31, 2025.

In March 2023, WinRep started experiencing liquidity issues due to problems related to its main offtake market in China. The Company, through WCA, made several attempts to support WinRep through debt restructuring, which were rejected by WinRep. WinRep’s financial situation worsened, and the Company decided to sign a Loan Purchase and Elevation Agreement dated as of September 28, 2023, to take over direct responsibility of the loan from WCA. The Company is currently evaluating several recovery strategies, including the liquidation of the Ecuadorian trust holding the collateral, which primarily consists of a land parcel in Ecuador. Due to the recent instability in Ecuador, the value of the land has decreased. The instability in Ecuador has improved;; however, real estate prices remain relatively low. During the second quarter of 2024, the Company has engaged several brokers on a non-exclusive basis to begin marketing the property for sale. In June 2025, the Company filed a hecho relevante (relevant fact) notification with the Superintendencia de Compañías (Superintendent of Companies, or "SIC") to formally inform the authority about the existence of our defaulted debt, which WinRep failed to report in its financial statements used to raise bond financing. Our local counsel then met with the Intendente Nacional de Mercado de Valores (National Intendant of the Stock Market) to provide further context. At the intendant's request, our loan documentation with the borrower was submitted to the SIC as evidence of the Company's debt. During the third quarter of 2025, the SIC initiated an internal investigation and requested further information from the trustee regarding the debtors, with a report expected during the second quarter of 2026. As a result of the ongoing delay, a decrease in fair value of approximately $220,000 was recognized during the year ended December 31, 2025.

In November 2019, the Company made an investment in Triton Metallics Pte. Ltd. (“Triton”) totaling $16,456,270 in a trade finance facility. Triton is a Singapore basedSingapore-based diversified commodities trading company. TransAsia Private Capital Ltd. ("TransAsia"), the sub-advisor for the Triton investment, informed the Company in early 2020 that due to the COVID-19 pandemic there have been constrained trading volumes. As a result, TransAsia then began working with the borrower to restructure the facility, and a restructuring agreement was executed on August 17, 2020. WeThe Company further amended the facility in June 2021, which reduced the interest rate from 11.5% to 6% PIK-only for a period of two years, in order to give Triton additional flexibility as it managed its business amidst the resurgence of the pandemic in Asia. The unpaid interest of $1,503,463 under the old trade finance facility has been capitalized and added to the outstanding principal balance as of the date of the new agreement. During the period of July 1, 2020 through August 16, 2020, $241,816 of interest income was recognized prior to the date the loan was restructured. During the year ended December 31, 2024,2025, the borrower was able to modestly increase its trading business; however, considering the extended timeline anticipated for business ramp-up, the borrower is not expected to be able to provide debt service for the next 12 months. As a result of this delay in debt service, a decrease in fair value of approximately $304,000 was recognized during the year ended December 31, 2025.

In March 2017, the Company provided a $15,000,000 term loan facility to Vikudha Malaysia Sdn Bhd (“Vikudha”). Vikudha is a trading and manufacturing company, founded in 2007, principally involved in procurement of fast-moving consumer goods and agricultural related products. The borrower company had strong performance through year-end 2019 and then was significantly impacted by COVID-19 and was unable to meet scheduled debt repayments due to commence. The facility was successfully restructured in November 2020, and the borrower was able to service the debt until there was a resurgence of the COVID-19 pandemic in the Asia region and global supply chains continued to be disrupted. In June 2021, a six-month final maturity extension was granted to June 2023. During the second quarter of 2022, the local office of one of Vikudha’s local bank lenders filed a wind-up petition against the company’s Hong Kong-based parent company and loan guarantor. The Company issued a Reservation of Rights Letter to Vikudha in June 2022. Subsequently, in August 2022, the Company issued an Acceleration Notice to the borrower and Demand Notices to Corporate and Personal Guarantors. Once the wind-up petition was granted by the Hong Kong court, the Company also filed proof of debt forms at the Hong Kong Receiver office to ensure legal rights are protectedprotected. whileThe continuingborrower continues to workprovide withupdates on its efforts to repay the debt, including the recent launch of a trading business currently handling only modest shipments, which the borrower onhopes repaymentto ofscale by 2026, and the debt. The borrower continues to seek additional equity and working capital as part of its efforts to rebuild its trading volumes; however, as this process has continued to be delayed, the probability of more negative scenarios, including ultimate liquidation, have increased.volumes. As a result of the continueddelays delays,in restarting its non-credit business and the modest volumes of its new trading business, the expected maturity has been extended. Accordingly, a negativedecrease valuationin adjustmentfair value of approximately $2.5 million was recognized during the year ended December 31, 2024 of approximately $501,000 was recognized.2025.

In August 2017, the Company provided a $15,000,000 senior secured term loan facility to Limas Commodities House Limited (“Limas”), a Hong Kong-based company 100% owned by an Indonesian entrepreneur. Limas was established as a financing SPV for PT Limas Tunggal, an Indonesian resource trader, for the purpose of gaining better access to international banking and capital markets. As a resource trading company, demand for Limas’ products were significantly affected by the global pandemic, reflected in lower shipping volume in 2020 and early 2021. The Company’s sub-advisor provided $6 million of working capital to Limas, which secured additional collateral for the sub-advisor and the Company in the form of assignment of three claims won in Korean cases totaling $15,000,000. The collateral was assigned pro-rata, adding $13.4 million to the Company’s existing collateral pool. Due to the continued impact of COVID-19, in June 2020, the Company executed an extension of final maturity to June 2023. Subsequent to June 30, 2022, PT Limas Tunggal, the corporate guarantor of the Company’s facility, entered restructuring legal proceedings in Indonesia, and as a result, the Company issued an Acceleration Notice to the borrower and a Demand Notice to the Guarantor. The restructuring legal proceedings were concluded during the third quarter of 20222022, whichresulting extendedin repaymentan extension of the debt andrepayment reduced the future interest rate from 11.5% to 10%. The borrower has progressed slowly towards materially ramping up its trading activity, with the expectation that progress will be accelerated once Limas receives its production quotas from the government, which are now expected to be issued by the end of the second quarter of 2025. Part of the collateral package for this loan are proceeds from the Korean cases, which continue to be delayed. As a result, a negative valuation adjustment during the year ended December 31, 2024 of approximately $222,000 was recognized.period.

In July 2017, the Company purchased a $15,000,000 Participation in a term loan facility with Multiple ICD (Kenya) Limited ("MICD"), an inland container depot storage and warehousing company. Repayment on this position has been slower than originally anticipated due initially to unfavorable local industry dynamics at the Port of Mombasa, which were further complicated by the COVID-19 pandemic. Barak Fund Management Ltd, the sub-advisor for the MICD investment, has been actively seeking to restructure the loan facility with MICD and its other lenders. While the loan is no longer on standstill, the lenders are requiring additional progress with the negotiations to renew it. During the second half of 2024, progress on the restructuring stalled as there were parties potentially interested in acquiring MICD and Multiple Hauliers, a sister company. The ongoing uncertainty regarding the restructuring continued to increase the probability that MICD may be liquidated;; however, in early 2025, the senior lenders agreed to meet with TriLincthe Company to discuss a potential settlement of the mezzanine lenders’ debt. TheseThe discussionsCompany aremet currentlywith inDLA progress.Piper, Also,the itsenior waslenders’ determinedcounsel, during the fourthyear quarterended December 31, 2025. As a result of 2024Multiple thatHauliers being put into Administration (a formal insolvency process), the elevationlenders tofor lenderMICD have been restricted from enforcing on those assets. The lenders have filed an appeal and requested the replacement of recordthe wasadministrator. notDuring possiblethe dueyear ended December 31, 2025, administrator appointments remained suspended pending court proceedings related to the requirementsadministration process. Therefore, settlement of the Company’s debt will be delayed until there is progress on the senior lenders' enforcement. Due to re-registerthese delays, a decrease in fair value of approximately $775,000 was recognized during the security.year ended December 31, 2025.

For the threesix months ended MarchJune 31,30, 2026, we did not issue any units through the DRP. As of MarchJune 31,30, 2026, $21,439,000 in units remained available for sale pursuant to the DRP, which was temporarily suspended effective April 1, 2023. The suspension of the DRP was lifted effective April 24, 2024. In addition, the Company's unit repurchase program was suspended effective April 1, 2023. On August 9, 2024, the Company's board of managers approved the reopening of the unit repurchase program, effective September 1, 2024, solely with respect to repurchase requests submitted in connection with the death or disability of a unitholder, subject to the other terms and limitations of the unit repurchase program. Due to the terms and limitations of the unit repurchase program, no units have been repurchased since the program was reopened in September 2024.

From our inception through MarchJune 31,30, 2026, we issued an aggregate of approximately 56,406,000 of our units, including 8,179,306 units issued under our DRP, for gross proceeds of approximately $515,089,000 including approximately $66,897,000 reinvested under our DRP (before dealer manager fees of approximately $4,801,000 and selling commissions of $16,862,000), for net proceeds of $493,427,000. We have not issued any units since the first quarter of 2023.

Over the past several years, the global economy weathered tighter monetary policy triggered by high inflation better than most economists originally forecasted, particularly the United States. However, growth expectations were modestly revised downward during the year ended December 31, 2025. Many of the Company’s borrowers experienced significant negative effects during the 2020 - 2022 period, due to higher operating costs and supply chain issues that began in 2020 with the onset of the COVID-19 pandemic, which were further exacerbated by the conflict between Russia and Ukraine. Although most supply-side conditions normalized in 2023, providing some economic relief to borrower companies, these disruptions had devastating and long-lasting impacts on the businesses, financial condition and results of operations of several borrower companies. Together, these factors have made it more difficult for borrowers to repay their obligations to the Company in a timely manner or at all, resulting in the Company experiencing inconsistent cash flows. Current macroeconomic conditions are not strong enough for many borrower companies to achieve a rapid and significant recovery in operating performance. The U.S. government has imposed, and may in the future increase, tariffs on specific countries and commodities. In response, certain non-U.S. countries have imposed or may impose retaliatory tariffs. The foregoing has created significant uncertainty about the future relationship between the United States and certain other countries with respect to trade policies, treaties and new and increased tariffs. Such uncertainty may be further exacerbated by ongoing geopolitical tensions and conflicts, including the continuing Russia-Ukraine conflict, conflicts and instability in the Middle East, and broader geopolitical competition among major global economies, which have contributed to volatility in global energy markets, supply chains, commodity prices and financial markets. These developments, and the continued uncertainty, may have a material adverse effect on global economic conditions and the stability of global financial markets. As of MarchJune 31,30, 2026, material direct effects on the Company's borrowers have been limited to a few select cases, as many announced tariffs remained suspended through the end of the firstsecond quarter of 2026. The Company’s NAV was relatively flat when compared to the NAV per unit as of December 31, 2025. The NAV remained relatively flat primarily as the result of the cumulative impact of several factors, including improved cash flows from certain of the Company’s borrowers and moderating inflation across multiple jurisdictions, partially offset by geopolitical developments, including the Russia–Ukraine War and ongoing conflicts and instability in the Middle East.

As a result of the inconsistent cash flows generated from the Company’s existing portfolio, the Company has experienced decreased liquidity, which, among other things, may continue to impact the Company’s ability to pay distributions to its unitholders or meet other Company obligations. Additionally, due to an event of default triggered under the Company’s credit facilities as a result of the resignation of the Company’s former independent registered public accounting firm in February 2023, which rendered the Company unable to timely file its Annual Report on Form 10-K for the year ended December 31, 2022, the Company entered into a Waiver and Agreement, dated as of May 9, 2023, pursuant to which the Company agreed to accelerate its repayment of the $18 million outstanding under the credit facilities. Pursuant to the terms of the Waiver and Agreement, the Company repaid the amounts outstanding under the credit facilities in full on August 31, 2023. Accordingly, the Company expects that in the near term it will experience additional significant constraints on its liquidity. As a result, with the exception of special distributions paid to unitholders in February 2024 and March 2024, the Company did not pay monthly distributions for periods subsequent to June 2023 and anticipates that it may not be able to pay regular monthly distributions in the coming quarters. In addition, the Company’s unit repurchase program, which was suspended effective April 1, 2023, has been reinstated, but only with respect to repurchase requests made in connection with the death or disability of a unitholder and remains subject to the other terms and limitations of the program, which generally limit funds available for redemption to proceeds from our DRP. Since we have not paid distributions since early 2024, there have not been any proceeds from our DRP. Our NAV per unit as of MarchJune 31,30, 2026 is higher than it would have been if the Company had continued to pay regular monthly distributions during the threesix months ended MarchJune 31,30, 2026.

The Company intends to continue evaluating and pursuing various strategic alternatives to address its liquidity needs, including the potential sale of all or a portion of certain investments, the pursuit of additional credit facilities, and the negotiation and execution of multiple settlement agreements, which are expected to close and provide liquidity in 2026. However, there can be no assurance as to the timing or receipt of any payments related to such settlement agreements. TheDuring the second quarter of 2026, the Company expects to engageengaged a financial advisor to assist the Company and its board with analyzing potential liquidity optionsoptions. andThe managementCompany expects that it will be able to provide an update regarding its exploration of potential liquidity options in itsthe nextcoming quarterly report on Form 10-Q.months.

Investments will continue to be primarily credit facilities and participations in credit facilities to developing economy SMEs, including trade finance and term loans, through the Advisor’s team of professional sub-advisors with a local presence in the markets where they invest. As of MarchJune 31,30, 2026, some of our investments were in the form of participations, and we expect that some of our future investments will continue to be in the form of participations. We typically provide financing that is collateralized, has a short to medium-term maturity and is self-liquidating through the repayment of principal. Our counterparty for certain participations generally is the respective sub-advisor or its affiliate that originates the loan in which we are participating. In such case, we will not have a contract with the underlying borrower and therefore, in the event of default, we will not have the ability to directly seek recovery against the collateral and instead will have to seek recovery through our sub-advisor counterparty, which increases the risk of full recovery.

As of MarchJune 31,30, 2026, 2.8%2.9% of the fair value of the Company’s total investments bore interest at floating rates based on the Secured Overnight Financing Rate (“SOFR”), serving as an alternative rate designated by the Company following the discontinuation of LIBOR, which was phased out completely in June 2023. In July 2023, the Company's legacy loans transitioned from LIBOR to Synthetic LIBOR, which was in effect until September 30, 2024. The Company's legacy loans have transitioned to SOFR following the complete phase-out of LIBOR as of September 30, 2024.

During the threesix months ended MarchJune 31,30, 2026, the Company did not make any investments. Additionally, the Company received proceeds from repayments and dispositions of investment principal of approximately $3.5$6.1 million.

At MarchJune 31,30, 2026 and December 31, 2025, the Company’s investment portfolio included 28 companies, and the fair value of our portfolio was comprised of the following:

As of MarchJune 31,30, 2026, the weighted average contractual yields, based upon the cost of our portfolio, on trade finance participations, term loan participations, senior secured term loans and convertible notes were 9.8%,9.6%, 13.7%, 16.2%16.3% and 11.8%, respectively, for a weighted average contractual yield on investments of approximately 13.5% on our total portfolio.

As of MarchJune 31,30, 2026, we had the following investments, listed by description of the underlying borrower (if applicable):

As of MarchJune 31,30, 2026, the composition of our investments at fair value based on the Company created industry classification was as follows:

We may only make investments that do not cause us to exceed these limits on the date of investment. These limits are calculated as a percentage of the fair value of all investments and cash on the date of investment. As of MarchJune 31,30, 2026, the Company has made investments in compliance with all of the above concentration limits.

The Company monitors and reviews the performance of its investments and if the Company determines that there are any significant changes in the credit and collection risk of an investment, the investment will be placed on the Watch List. The Company places an investment on the Watch List when it believes the investment has material performance weakness driven by company-specific and macro events that may affect the timing of future cash flows. For all Watch List investments, the Company evaluates: (i) liquidation value of collateral; (ii) rights and remedies enforceable against the borrower; (iii) any credit insurance and/or guarantees; (iv) market, sector and macro events and (v) other relevant information (e.g., third party purchase of the borrower and potential or ongoing litigation). At MarchJune 31,30, 2026, 19 portfolio companies were on non-accrual status with an aggregate fair value of approximately $133,141,782$129,567,344 or 50.6%49.3% of the fair value of the Company’s total investments. At December 31, 2025, 19 portfolio companies were on non-accrual status with an aggregate fair value of approximately $134,642,632 or 51.3% of the fair value of the Company’s total investments. As of MarchJune 31,30, 2026 and December 31, 2025, the Company had 2221 and 22 Watch List investments, respectively, representing 56.2%51.1% and 57.1%, respectively, of the fair value of the Company's total investments.

As of MarchJune 31,30, 2026, the Company’s Watch List investments consisted of the following:

IIG was the sub-advisor with respect to certain investments that the Company made in South America, including 5 of the 2221 Watch List investments as of MarchJune 31,30, 2026. Since June 30, 2018, the Company has discovered, among other things, that IIG failed to provide the Company with complete and accurate information with respect to the investments for which IIG was the sub-advisor and, in 2017, sold the Company a $6 million participation in a loan to Nacadie (defined below) that did not exist. In November of 2019, the SEC charged IIG with fraud and revoked IIG’s registration. Shortly thereafter, IIG ceased all operations. A fund managed by IIG, which sold most of the participations to the Company, was placed into bankruptcy in January 2020. Subsequently, the Company filed a bankruptcy claim against the remaining assets of the estate.

Most of the outstanding investments for which IIG was the sub-advisor were purchased from IIG TOF B.V., a Dutch Limited Liability Company advised by IIG. On December 11, 2019, a subsidiary of the Company filed an application in Amsterdam District Court to declare IIG TOF B.V. bankrupt. As set forth in the application for the Declaration of Bankruptcy, the Company and other creditors believe they have multiple due and payable claims against IIG TOF B.V. which IIG TOF B.V. has acknowledged it is unable to pay. On January 21, 2020, the Amsterdam District Court declared IIG TOF B.V. bankrupt and appointed a Dutch law firm as liquidator. The Company is seeking recovery of amounts due and payable to the Company with respect to the Participations it acquired from IIG TOF B.V. There can be no assurances as to when or if the Company will recover the amounts to which the Company believes it is entitled. Additional information regarding Watch List investments for which IIG was the sub-advisor with a fair value equal to or greater than 1.0% of the Company's net assets as of MarchJune 31,30, 2026 is presented below.

Between October 2016 and February 2017, the Company purchased two Participations in a trade finance facility originated by IIG TOF B.V., with Compania Argentina de Granos (“CAGSA”),CAGSA, as borrower. The Company purchased the initial Participation in October 2016 for $10,000,000 and subsequently increased the Participation by another $2,500,000 in February 2017. This facility was collateralized by two export contracts. CAGSA, an Argentine company, is mainly engaged in the trading of grain and oilseed and the distribution and processing of food ingredients. Due to unfavorable weather conditions, CAGSA was unable to make delivery of toasted soybean meal under the terms of its export contracts. As a result, it failed to pay IIG its outstanding principal due on June 30, 2018.

IIG previously informed the Company that it had been in active discussions with CAGSA and other CAGSA lenders to protect its rights under the credit facility. Additionally, IIG had previously informed the Company that IIG is a member of the creditors committee, which would determine all financial and restructuring options of CAGSA, which may include additional equity infusions by the existing shareholders. In February 2019, CAGSA disclosed that it had reached a preliminary settlement with its creditors. The administrator of IIG TOF B.V.’s bankruptcy proceedings in the Netherlands notified the Company that the settlement discussions with CAGSA’s creditors had resumed and were close to being finalized. The administrator indicated that the terms of the settlement being discussed are different from the terms that had been part of the preliminary settlement that had been reached in February 2019. The settlement is expected to result in the assumption of the entirety of CAGSA’s debt by its parent company, Molinos Cañuelas (“MolCa”), with a portion to be repaid over a ten-year period and the remaining portion to be repaid over a period of up to ten years from the proceeds of the sale of 62.5% of the outstanding interests in MolCa, which are expected to be pledged to the unsecured creditors of CAGSA and MolCa as part of the proposed settlement. On September 27, 2021, MolCa and CAGSA filed for debt restructuring in the Argentinian bankruptcy court. On March 11, 2022, IIG TOF BV filed claims on behalf of the Company for the court to recognize the amounts due. The terms of the restructuring had been widely pre-approved by the creditors group prior to the filing. Since then, there have been several iterations of the settlement terms, with each set of terms representing slightly better terms for the lenders. The final restructuring proposal was submitted on December 31, 2024. On July 31, 2025, the court approved the restructuring plan. The Company received the first payment of the settlement proceeds as expected in early October 2025. The second payment was received in February 2026 as scheduled. AsIn June 2026, the Company continuedwas toadvised by counsel that the settlement proceeds should be allocated based on the restructuring proposal, instead of the pre-existing settlement agreement. Under the revised methodology, the Company will receive settlementa payments,smaller anportion increaseof near-term distributions, with a larger portion of recoveries expected in the longer term. Given the revised amortization, a decrease in fair value of approximately $210,000$417,000 was recognized as a result of the quarterly valuation during the threesix months ended MarchJune 31,30, 2026.

In August 2019, the Company was informed by IIG’s legal counsel that the commercial court proceedings with FRIAR and Algodonera had been terminated due to the parties having reached a settlement. The Company obtained evidence that the settlement proceeds for all participant holders had been placed in an escrow account with a New York law firm. In January 2022, the largest participant holder with respect to claims against the escrow account filed an action in New York district court to release these funds to all the participant holders. In August of 2023, the court awarded the Company $4.6 million in proceeds from the escrow account. As of MarchJune 31,30, 2026, the creditors continue to work with the IIG TOF B.V. liquidator on further claims to satisfy the remaining debt owed.

In April 2016, the Company purchased two Participations in a trade finance facility originated by IIG TOF B.V., with Sancor Cooperativas Unidas Limitada (“"Sancor”"), an Argentine company that distributes dairy products, as the borrower. IIG had worked with Sancor to restructure the existing loan and extended the maturity to July 29, 2019, with an annual renewal option. Since February 2019, Sancor has announced the sale of certain of its assets, which allowed it to make some payments to creditors and maintain operations, but the Company did not receive any payment as a result of those asset sales. As noted above, IIG has ceased operations and the Company has taken legal action in an attempt to recover amounts due. During the quarter ended December 31, 2020, the Company learned, in connection with certain court proceedings in the United States Bankruptcy Court for the Southern District of New York regarding a fund advised by IIG, that funds had been received in a New York bank account controlled by an affiliate of IIG and that such funds may include prior debt service payments by Sancor related to the Company’s interests in the Sancor trade finance facility. During the year ended December 31, 2021, the Company was able to obtain control of the assets in the bank account and determined that they should primarily be allocated to outstanding interest. During the year ended December 31, 2021, Sancor was engaged in ongoing negotiations with its lenders regarding a debt restructuring, including discussions with the administrator of IIG TOF B.V.’s bankruptcy proceedings in the Netherlands. During the year ended December 31, 2021, the Company received interest payments of approximately $700,000 and principal payments of approximately $198,000 from the borrower. The Company is cooperating with the lender group in seeking a default judgement in a court in Argentina to take control of the collateral in an effort to facilitate negotiation with Sancor on settlement of the debt. In July 2024, a joint liquidation agreement for the warrants was executed between Sancor and the creditor group, providing for the immediate liquidation of 70% of the warrants, the proceeds of which were to be transferred to the creditors, with the remaining warrants to be liquidated, deposited into an escrow account, and paid in four equal installments starting in September 2024. In August 2024, a deposit of approximately $500,000 was transferred to an Argentinean escrow agent to be held for 9 to 12 months on behalf of all creditors, with a currency hedge in place. While a partial payment of $150,000 was paid in September 2024, Sancor has not fulfilled its installment obligations as agreed per the joint liquidation agreement. In the aggregate, Sancor has paid only approximately $650,000 of the $2.2 million owed through 2024 to the escrow account in Argentina. As a result, counsel arranged for the auction of the warrants to be recommenced. However, in December 2024, Sancor requested to pause the auction process in exchange for an immediate payment of $80,000. In the interest of providing Sancor with further time to repay the debt, counsel to the lender group agreed. Sancor deposited $40,000 into the escrow account in December 2024 and advised that a second payment of $40,000 would be forthcoming in 2-3 weeks. Payment was never received, so counsel to the lender group once again began the process of auctioning the warrants. While the auction was expected to begin in the first half of 2025, in early February 2025, Sancor filed for concurso preventivo protection (equivalent to a U.S. Chapter 11 bankruptcy filing) in Argentina. In June 2025, the Company, as part of the lender group, filed claims in the concurso proceeding, and in August and September 2025, Sancor filed objections to the claims. In September 2025, the Argentine court granted an extension for the concurso deadlines, extending the exclusivity period to February 9, 2026. The court further extended the timeline during the fourth quarter of 2025, setting the next deadline in May 2026. Sancor filed for bankruptcy on April 15, 2026 and the court commenced the bankruptcy proceedings on April 22, 2026.2026, Post-petitionshifting creditorsthe areprocess requiredfrom a negotiated restructuring to filean claimsasset-liquidation forframework. verificationOn withJune 11, 2026, the bankruptcy trusteecourt byapproved Mayand 29,established 2026.the bidding terms, minimum sale prices and timetable for the sale of collateral, including industrial plants and the Sancor brand portfolio. Counsel continues to monitor the sale process. Due to the ongoing uncertainty as to the Company's ability to recover amounts due to it by Sancor, a decrease in fair value of approximately $534,000$333,000 was recognized during the threesix months ended MarchJune 31,30, 2026.

As noted above, IIG TOF B.V. was declared bankrupt in the Netherlands, and the Company is seeking to recover amounts to which it is entitled through the bankruptcy proceedings. The Company has applied a discount to the fair value based on the risk created by the uncertainty of the ultimate resolution of the Company’s attempt to recover amounts to which it is entitled through the bankruptcy proceedings in the Netherlands. On July 25, 2024, the Company received $75,000 from the U.S. Attorney’s Office as part of a restitution settlement with David Hu and was notified that a restitution settlement with Martin Silver is still in process. On August 29, 2025, the Company received $40,726 from the U.S. Attorney’s Office as further recovery from the restitution settlement with David Hu. The Company also received immaterial proceeds in February 2026 in connection with a settlement involving Martin Silver’s spouse. As of MarchJune 31,30, 2026, the creditors continue to work with the IIG TOF B.V. liquidator on further claims to satisfy the remaining debt owed.

Between March 2018 and June 2018, the Company purchased three Participations totaling $15,986,369 in a trade finance facility with Producam SA (“Producam”), a Cameroon-based cocoa and coffee exporter, as the borrower. Repayment on these Participations has been slower than originally anticipated due to short run cash flow pressure on Producam. The original sub-advisor for this facility was Africa Merchant Capital Group (“AMC”). In the third quarter of 2018, AMC informed the Company that the borrower misapplied the proceeds from the sale of certain of its inventory to finance its own cash flow needs rather than repay the facility. AMC then began working with the borrower to restructure the facility to recover amounts due. In April 2021, Scipion replaced AMC as the sub-advisor with respect to Producam and agreed to undertake efforts to liquidate the collateral underlying the facility in order to recover amounts due to the Company, and the restructuring process was finalized. Under the new agreement, the loan was restructured with the interest rate reduced from 17.5% to 9.5% for the cocoa facility and 6.0% for the coffee facility retroactively to January 1, 2019. As part of the restructure, the Company included a PIK component which increased the principal amount. The fair value of the investment decreased during the year ended December 31, 2021 due to collections from completed cocoa and coffee shipments being slower than anticipated. As all interest was capitalized as part of the amendment, no accrued interest remains outstanding as of the date of the new agreement. During the period from April 1, 2021 through April 14, 2021 (the date the loan was restructured), $49,014 of interest income was recognized. As of MarchJune 31,30, 2026, recovery is expected to come primarily from the legal claim filed in the UK courts against the collateral manager and its insurer. Due to ongoing delays, a decrease in fair value of approximately $454,000$922,000 was recognized during the threesix months ended MarchJune 31,30, 2026.

In 2018, the Company originally provided financing totaling approximately $10,968,000 to Agilis Partners ("Agilis"), a Ugandan company engaged in the farming, storage, processing, and trading of maize, soybean, and sunflower seeds through Scipion. This financing was refinanced into a new loan through Origin in July 2021 as part of a broader financial restructuring. Repayment on the facility has been slower than originally anticipated due to ongoing liquidity challenges of the borrower, as well as record drought conditions in Uganda. The Company and Origin agreed to a deferral of Agilis’ March 2022 interest payment and are actively working with the borrower on solutions to increase working capital, manage other creditor relationships and improve the overall financial condition of the borrower. Origin, the borrower, and the Company have continued working toward a comprehensive restructuring of Agilis’ capital structure in connection with a potential merger of Agilis with two other farms in Uganda owned by a prospective investor. In January 2026, the relevant parties executed a restructuring term sheet establishing the framework for the refinancing and restructuring of Agilis’ capital structure, including the potential conversion of a portion of lender exposure into equity interests and the separation of land ownership from operating activities. The parties are currently negotiating definitive documentation to implement the restructuring, which is expected to close in 2026, but there can be no assurance that it will close in that timeframe or at all. Similarly, there can be no assurance as to when the Company's investment in the facility will be repaid. Due to ongoing delays, a decrease in fair value of approximately $260,000$532,000 was recognized during the threesix months ended MarchJune 31,30, 2026.

In the third quarter of 2024, Surpapel encountered significant challenges due to an ongoing energy crisis in Ecuador, driven by the country’s dependence on hydroelectric power amid severe drought conditions. At the request of the Company’s syndicate, Surpapel engaged FTI Consulting to serve as financial advisor to support a potential sale process. During 2025, Surpapel continued to experience liquidity constraints that limited its ability to operate at scale. As the lenderslender group was not positioned to provide additional rescue financing, a sale of the senior secured debt was explored as an alternative path to recovery. An Ecuadorian packaging company emerged as the lead buyer and provided Surpapel with limited short-term working capital while it conducted its due diligence. In December 2025, the lenderslender group and the buyerbuyer, an Ecuadorian packaging company, executed a binding memorandum of understanding outlining the agreed framework for the acquisition of the lenders’ economic interests in the syndicated debt. During the firstsecond quarter of 2026, the partieslender continuedgroup finalized transaction documents for the assignment of the lenders’ loans and related security interests. Subsequent to advancequarter theend, documentationon andJuly implementation17, steps required to complete the transaction; however, additional regulatory and procedural requirements affected the execution timeline. There can be no assurance that2026, the transaction willclosed close duringand the thirdlenders quarterassigned their loans and related security interests to the buyer. Receipt of 2026the asfirst expectedpayment orremains atsubject all.to registration of the asset transfer and the issuance by Banco Guayaquil of a bank guarantee securing the buyer's payment obligation. The Company expects that all of the proceeds recognizedreceived from such transaction will be used to repay a participation interest in a term loan (see Note 5. Contingencies and Related Parties for additional information). Due to updated transaction terms and timing assumptions, an increase in fair value of approximately $207,000 was recognized during the six months ended June 30, 2026.

In early 2025, Dock Brasil’s shareholders initiated a sale process led by BroadSpan Capital ("BroadSpan"). Although multiple bids were received, only two of the bids were considered by BroadSpan to be reasonable. After an initial bid from a leading publicly listed Brazilian offshore maritime services company, Dock Brasil countered and sought superior offers from the second bidder. Late in the third quarter of 2025, the Company learned that the second bidder withdrew from contention as a potential purchaser. The Company consented to the sale to the Brazilian offshore maritime services company to facilitate an orderly exit. In November 2025, the Company and Dock Brasil’s shareholders agreed to a settlement allocating $73 million Brazilian reais (approximately US$14.0US$14.1 million based on the exchange rate on MarchJune 31,30, 2026) of the sale proceeds to the Company.Company as a portion of the final settlement proceeds. In good faith, Dock Brasil paid $10 million Brazilian reais (approximately US$1.99 million based on the exchange rate on June 2, 2026) to the Company in early June 2026. As such, an increase in fair value of approximately $103,000 was recognized during the six months ended June 30, 2026. As of MarchJune 31,30, 2026, the sale continues to progress and is expected to be finalized during the secondthird quarter of 2026.

A trial was held for the Elisenheim property case in Namibia from June 24, 2024 to July 5, 2024. The judge ruled in favor of the Company via Helios, and a hearing was set for July 14, 2024 during which the judge determined that the judge presiding over the case to enforce the UK judgement in Namibia should first rule on the referral relief. A case management meeting for the UK Trustco case was held on December 10, 2023, and a hearing was set for July 31, 2024 during which the judge gave Trustco time to determine if they would bring an application for leave. At a subsequent hearing held on November 28, 2024, the judge set trial dates from September 2 to September 12, 2025. Trustco submitted an application for dismissal of the Company’s claim, which was dismissed by the court, after which Trustco formally requested a postponement of the remainder of the trial and was granted postponement until January 2026. A procedural matter resulted in a further delay of the trial, with the nextThe hearing scheduled for June 2026 was carried out as expected. The judgment is expected to be delivered in the third quarter of 2026. Due to the increase in value of the Namibian dollar as of June 30, 2026, an increase in fair value of approximately $444,000 was recognized for the six months ended June 30, 2026.

In March 2023, WinRep started experiencing liquidity issues due to problems related to its main offtake market in China. The Company, through WCA, made several attempts to support WinRep through debt restructuring, which were rejected by WinRep. WinRep’s financial situation worsened, and the Company decided to sign a Loan Purchase and Elevation Agreement dated as of September 28, 2023, to take over direct responsibility of the loan from WCA. The Company is currently evaluating several recovery strategies, including the liquidation of the Ecuadorian trust holding the collateral, which primarily consists of a land parcel in Ecuador. Due to the recent instability in Ecuador, the value of the land has decreased. The instability in Ecuador has improved; however, real estate prices remain relatively low. During the second quarter of 2024, the Company engaged several brokers on a non-exclusive basis to begin marketing the property for sale. In June 2025, the Company filed a hecho relevante (relevant fact) notification with the Superintendencia de Compañías (Superintendent of Companies, or "SIC") to formally inform the authority about the existence of our defaulted debt, which WinRep failed to report in its financial statements used to raise bond financing. Our local counsel then met with the Intendente Nacional de Mercado de Valores (National Intendant of the Stock Market) to provide further context. At the intendant's request, our loan documentation with the borrower was submitted to the SIC as evidence of the Company's debt. During the third quarter of 2025, the SIC initiated an internal investigation and requested further information from the trustee regarding the debtors. Based on the report subsequently received in April 2026, WinRep’s accounting treatment of the facility did not constitute concealment of financial liabilities because the disbursed balance was recorded in its audited financial statements. WinRep was fined $23,000 and its security registration was canceled in the Public Registry of the Securities Market in March 2026. Efforts to pursue recovery through sale of the land parcel held in trust in Ecuador continue. Due to the ongoing uncertainty as to the Company's ability to recover amounts due, a decrease in fair value of approximately $284,000 was recognized during the six months ended June 30, 2026

In November 2019, the Company made an investment in Triton Metallics Pte. Ltd. (“Triton”) totaling $16,456,270 in a trade finance facility. Triton is a Singapore-based diversified commodities trading company. TransAsia Private Capital Ltd. ("TransAsia"), the sub-advisor for the Triton investment, informed the Company in early 2020 that due to the COVID-19 pandemic there have been constrained trading volumes. As a result, TransAsia then began working with the borrower to restructure the facility, and a restructuring agreement was executed on August 17, 2020. The Company further amended the facility in June 2021, which reduced the interest rate from 11.5% to 6% PIK-only for a period of two years, in order to give Triton additional flexibility as it managed its business amidst the resurgence of the pandemic in Asia. The unpaid interest of $1,503,463 under the old trade finance facility has been capitalized and added to the outstanding principal balance as of the date of the new agreement. During the period of July 1, 2020 through August 16, 2020, $241,816 of interest income was recognized prior to the date the loan was restructured. During the threesix months ended MarchJune 31,30, 2026, the borrower was only able to modestly increase its trading business; however, considering the extended timeline anticipated for business ramp-up, the borrower is not expected to be able to provide debt service for the next 12 months.

In March 2017, the Company provided a $15,000,000 term loan facility to Vikudha Malaysia Sdn Bhd (“Vikudha”). Vikudha is a trading and manufacturing company, founded in 2007, principally involved in procurement of fast-moving consumer goods and agricultural related products. The borrower company had strong performance through year-end 2019 and then was significantly impacted by COVID-19 and was unable to meet scheduled debt repayments due to commence. The facility was successfully restructured in November 2020, and the borrower was able to service the debt until there was a resurgence of the COVID-19 pandemic in the Asia region and global supply chains continued to be disrupted. In June 2021, a six-month final maturity extension was granted to June 2023. During the second quarter of 2022, the local office of one of Vikudha’s local bank lenders filed a wind-up petition against the company’s Hong Kong-based parent company and loan guarantor. The Company issued a Reservation of Rights Letter to Vikudha in June 2022. Subsequently, in August 2022, the Company issued an Acceleration Notice to the borrower and Demand Notices to Corporate and Personal Guarantors. Once the wind-up petition was granted by the Hong Kong court, the Company also filed proof of debt forms at the Hong Kong Receiver office to ensure legal rights are protected. The borrower continues to provide updates on its efforts to repay the debt, including the recent launch of a trading business currently handling only modest shipments, which the borrower hopes to scale byduring 2026. The borrower continues to seek additional equity and working capital as part of its efforts to rebuild its trading volumes. As a result of the delays in restarting its non-credit business and the modest volumes of its new trading business, the expected maturity has been extended. Accordingly, a decrease in fair value of $100,000 was recognized during the three months ended March 31, 2026.

The borrower has progressed slowly towards materially ramping up its trading activity. Progress is expected to accelerate following the government's issuance of production quotas and the borrower’s assumption of control over mining operations in late 2026. Part of the collateral package for this loan are proceeds from the Korean cases, which continue to be delayed. As a result, a decrease in fair value of approximately $101,000$343,000 was recognized during the threesix months ended MarchJune 31,30, 2026.

In 2022, Lidas began facing liquidity challenges,challenges largelydriven dueby tohigher theinput impactcosts offollowing Russia’s invasion of Ukraine,Ukraine whichand drovedelays in ramping up inputits costs,new particularlyproduction forfacility. wheat, a key raw material sourced significantly from both countries. To mitigate these challenges,Although Lidas received financial support from the Romanian government, withgovernment subsidies for budgeted expenses expected in 2023. In the second quarter of 2023, Lidas received approximately €2.0 million in government subsidies, followed by an additional €5.8 million inand grants in July2023 2024.and Despite this financial support,2024, Lidas continued to face declining sales, primarily due to technical issues associated with the launch of its new production facility. Furthermore, a shortage of working capital ledconstraints, toand operational disruptions, including a temporary suspension of new orders from the facility in 2024. As a result, Lidas has been unable to service its loan from the Company without raisingadditional equitycapital toor supporta furtherbroader growth.restructuring. In September 2025, Lidas entered into a court supervisedcourt-supervised restructuring process, in which the Company is actively participating. In November 2025, Lidas initiated a preventative composition proceeding with its creditors under Romanian law, which is comparable to a U.S. Chapter 11 bankruptcy filing, and a restructuring plan was circulated to creditors in early 2026. Following a creditor vote on April 14, 2026, the court closed the composition procedure on April 29, 2026. Lidas appealed the decision, but a final ruling issued on June 24, 2026, closed the procedure with no further right of appeal. Lidas has filed a new request to commence a composition procedure, and the Company and other creditors have filed petitions to open insolvency proceedings. The Company is currentlycontinuing evaluatingto theevaluate proposalenforcement and recovery options, while coordinating with local counsel and other creditorscreditors. regardingDue nextto steps.ongoing restructuring delays, a decrease in fair value of approximately $460,000 was recognized during the six months ended June 30, 2026.

In September 2025, one of PT Citra’s suppliers filed a Penundaan Kewajiban Pembayaran Utang ("PKPU") claim (Indonesia’s equivalent to a U.S. Chapter 11 bankruptcy filing), which was granted by the court. The Company then filed a creditor claim that was recognized by the court. PT Citra has appointed a financial advisor to prepare a restructuring plan for all creditors. As PT Citra’s largest creditor, the Company remains actively engaged in the process. The proposed extension to the PKPU process was rejected by PT Citra and the unsecured creditors, and the proposal provided by PT Citra was not agreed among the creditors. As a result, PT Citra was formally placed into bankruptcy in April 2026.2026 and proceeded to auction. The Company’s local counsel has engaged with the High Court to represent the Company’s interest as the matter progresses. As a result of the ongoing uncertainty introduced byover the bankruptcy proceeding,proceedings, a decrease in fair value of approximately $1.1 million$2,039,000 was recognized during the threesix months ended MarchJune 31,30, 2026.

The two borrowers were significantly impacted by COVID-19 and were not able to meet scheduled debt repayments since mid-2019. Due to the delays in the repayments, the Company, along with other lenders in the lending group, entered into a settlement agreement for the outstanding amount and termination of the transaction with the borrowers during the year ended December 31, 2023. With respect to the agreement, the Company planned to combine them as one equity participation and trade the collateral through a local agent. The Company owns 34.02% of the total settlement and has completed one trade. As of December 31, 2025, approximately $271,000 was recovered through cocoa sales by the local agent. As cocoa prices continued to decline toward normalized levels throughout 2025 and into the first quarter of 2026, the expected proceeds from cocoa sales correspondingly decreased.

Depending on the specific terms of our investments, interest earned by us is payable either monthly, quarterly, or, in the case of most trade finance investments, at maturity. As such, some of our investments have up to a year or more of accrued interest receivable as of MarchJune 31,30, 2026. In addition, certain of our investments in term loans accrue deferred interest, which is not payable until the maturity of the loans. Lastly, certain of the Company's investments have PIK interest, which is accrued as interest receivable and capitalized on a regular basis. As a result, a significant portion of the Company's interest receivable balance may not be received in cash in the short term. The Company's interest receivable balances at MarchJune 31,30, 2026 and December 31, 2025 are recorded at net realizable value.

Consolidated operating results for the three and six months ended MarchJune 31,30, 2026 and 2025 are as follows:

Three months ended MarchJune 31,30, 2026 and 2025

For the three months ended MarchJune 31,30, 2026 and 2025, total investment income amounted to $4,023,697$5,638,056 and $6,253,134,$7,474,016, respectively. The decrease was primarily attributable to the placement of several investments on non-accrual status since the firstsecond quarter of 2025. Additionally, for the three months ended March 31, 2026, the Company recorded negative investment income for one investment as a result of the period end assessment of the net realizable value of interest receivable associated with that investment. Excluding this investment for which negative investment income was recorded during the period, the Company recorded approximately $5.4 million of total investment income during the three months ended March 31, 2026. Other income primarily consists of certain rental income, payments from legal settlements, and other miscellaneous sources, which are generally considered a minor component of our total investment income.

During the three months ended MarchJune 31,30, 2025,2026, $1,599,664$816,941 or 25.6%14.5% of the investment income was earned from loan and trade finance participations and $3,883,360$3,947,077 or 62.1%70.0% was earned from direct loans. In addition, we earned $291$294 in interest income on our cash balances.

Three months ended MarchJune 31,30, 2026 and 2025

Total operating expenses, excluding the asset management and incentive fees, incurred for the three months ended MarchJune 31,30, 2026 increaseddecreased by $417,614$608,786 to $2,103,363$1,766,825 from $1,685,749$2,375,611 for the three months ended MarchJune 31,30, 2025. This increasedecrease was primarily attributable to higherlower legal and professional fees incurred during the firstsecond quarter of 2026 compared to the same period in 2025, as well as interest expense related to the repurchase obligation (see Note 5, Contingencies and Related Party Transactions, for additional information), which began accruing following the recognition of the related asset and corresponding liability on June 18, 2025.

For the three months ended MarchJune 31,30, 2026 and 2025, the asset management fees amounted to $1,384,860$1,380,911 and $1,425,604,$1,429,233, respectively. The incentive fees for the three months ended MarchJune 31,30, 2026 and 2025 amounted to $0 and $0, respectively.

We measure net realized gains or losses by the difference between the net proceeds from the repayment or sale of an investment and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment fair market values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized. We recorded net realized losses of $0 and $73,871 for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. We recorded net change in unrealized depreciation of $472,404$3,744,948 and $505,776$3,449,639 for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. The net changes in unrealized depreciation for the threesix months ended MarchJune 31,30, 2026 and 2025, were primarily driven by increased uncertainty regarding the future cash flows of certain investments and the Company’s strategic liquidation of certain investments to mitigate prevailing liquidity challenges.

As of MarchJune 31,30, 2026, we had $1,121,528$388,302 in cash. The Company is in the process of realizing liquidity from the settlement of certain investments and expects to receive several million dollars in cash in the near term. The Company expects to fund the payment of past and current operating and other accrued expenses with these proceeds. We generate cash primarily from cash flows from interest, dividends and fees earned from our investments and principal repayments, proceeds from sales of our investments and from sales of promissory notes, proceeds from the issuance of notes payable, and proceeds from private placements of our units. We may also generate cash in the future from debt financing. We have been facing liquidity constraints, primarily due to our borrowers experiencing challenges in their ability to repay amounts owed to us in a timely manner or at all, as described above under "Outlook." Until we are able to accumulate more cash, our primary use of our limited cash will be the payment of our expenses. While we currently anticipate payments on certain investments during 2026, there can be no assurances that anticipated payments will be made when expected or at all. We may determine to execute additional sales of all or a portion of our interest in one or more investments to increase liquidity from time to time.

Cash flows from operating activities for the threesix months ended MarchJune 31,30, 2026, increased by approximately $73,000$384,000 compared to the same period in 2025. This increase was primarily due to higher proceeds from paydowns of investments, reflecting the Company’s continued efforts to realize liquidity through the settlement of certain investments.investments, partially offset by a decrease in accrued expenses.

Cash flows used in financing activities for the threesix months ended MarchJune 31,30, 2026, decreasedincreased by approximately $4,000$6,000 compared to the same period in 2025. The decreaseincrease was primarily attributable to a payment made in connection with a redemption related to a prior redemption request submitted in good order in 2022 that was inadvertently not processed prior to the Company’s suspension of the unit repurchase program in 2023. Upon discovery, the Company corrected this processing error, and the requestrelated payment was subsequentlyprocessed fulfilledduring the first quarter of 2026. In addition, the Company made distributions totaling of $2,419 during the three months ended June 30, 2026 relating to distributions payable in Novemberprior 2025.years that were inadvertently omitted from the aggregate distribution payments processed and paid by the transfer agent for such years.

We may borrow additional funds to make investments. We have not decided to what extent going forward we will finance portfolio investments using debt or the specific form that any such financing would take, but we believe that obtaining financing is necessary for us to fully achieve our long-term goals. We have been, and still are, actively seeking further financing through both development banks and several commercial banks. Accordingly, we cannot predict with certainty what terms any such financing would have or the costs we would incur in connection with any such arrangement. On November 3, 2022, we entered into a transaction with an unrelated financial institution, whereby we sold a $5.0 million participation interest in one of our term loan positions and, as of March 31, 2023, we had agreed to repurchase the participation by October 2023 at a price equal to the sum of the original sales price plus accrued interest calculated at a simple 10% annualized rate. On March 21, 2023, the terms were amended. The repurchase date was extended to October 17, 2023, and the interest rate was increased to 11.5% per annum. The amendment also granted the buyer the right to elevate its position to a direct interest or sell the position to a third party. In October 2024, the agreement was further amended. The repurchase date was extended to June 18, 2025, subject to partial principal and interest payments. As of MarchJune 31,30, 2026, we had approximately $2.9 million in total debt outstanding, solely related to the repurchase obligation, resulting in a debt to equity ratio of 1.1%.