Saratoga Investment Corp. Files Q3 2024 10-Q

TL;DR

Saratoga Investment Corp. filed its 10-Q for Q3 2024. Check financials.

AI Summary

Saratoga Investment Corp. filed its 10-Q for the quarterly period ended August 31, 2024. The company, incorporated in Maryland, is headquartered at 535 Madison Avenue, New York, NY 10022. Its common stock is registered on a national exchange.

Why It Matters

This filing provides investors with an update on Saratoga Investment Corp.'s financial performance and operational status for the third quarter of fiscal year 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Players & Entities

• SARATOGA INVESTMENT CORP. (company) — Registrant
• August 31, 2024 (date) — Quarterly Period End Date
• 535 Madison Avenue, New York, New York 10022 (address) — Principal Executive Offices
• Maryland (jurisdiction) — State of Incorporation
• 20-8700615 (id_number) — I.R.S. Employer Identification Number
• 814-00732 (file_number) — Commission File Number

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SAR The New York Stock Exchan

Filing Documents

• ea0215310-10q_saratoga.htm (10-Q) — 9399KB
• ea021531001ex31-1_saratoga.htm (EX-31.1) — 11KB
• ea021531001ex31-2_saratoga.htm (EX-31.2) — 11KB
• ea021531001ex32-1_saratoga.htm (EX-32.1) — 4KB
• ea021531001ex32-2_saratoga.htm (EX-32.2) — 5KB
• 0001213900-24-086270.txt ( ) — 42782KB
• sar-20240831.xsd (EX-101.SCH) — 264KB
• sar-20240831_cal.xml (EX-101.CAL) — 65KB
• sar-20240831_def.xml (EX-101.DEF) — 775KB
• sar-20240831_lab.xml (EX-101.LAB) — 1485KB
• sar-20240831_pre.xml (EX-101.PRE) — 818KB
• ea0215310-10q_saratoga_htm.xml (XML) — 13134KB

Financial Statements

Financial Statements 1 Consolidated 1 Consolidated 2 Consolidated 3 Consolidated 4 Consolidated Schedules of Investments as of August 31, 2024 (unaudited) and February 29, 2024 5 Notes to Consolidated Financial Statements as of August 31, 2024 (unaudited) 27 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 98 Item 3. Quantitative and Qualitative Disclosures About Market Risk 136 Item 4. Controls and Procedures 137 PART II. OTHER INFORMATION 138 Item 1. Legal Proceedings 138 Item 1A. Risk Factors 138 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 138 Item 3. Defaults Upon Senior Securities 138 Item 4. Mine Safety Disclosures 138 Item 5. Other Information 138 Item 6. Exhibits 139

Signatures

Signatures 141 i PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Saratoga Investment Corp. Consolidated Statements of Assets and Liabilities August 31, 2024 February 29, 2024 (unaudited) ASSETS Investments at fair value Non-control/Non-affiliate investments (amortized cost of $ 932,599,967 and $ 1,035,879,751 , respectively) $ 963,176,509 $ 1,019,774,616 Affiliate investments (amortized cost of $ 27,197,048 and $ 26,707,415 , respectively) 29,193,438 27,749,137 Control investments (amortized cost of $ 79,244,797 and $ 117,196,571 , respectively) 48,341,503 91,270,036 Total investments at fair value (amortized cost of $ 1,039,041,812 and $ 1,179,783,737 , respectively) 1,040,711,450 1,138,793,789 Cash and cash equivalents 84,569,590 8,692,846 Cash and cash equivalents, reserve accounts 77,434,591 31,814,278 Interest receivable (net of reserve of $ 21,216 and $ 9,490,340 , respectively) 10,085,266 10,298,998 Management fee receivable 333,826 343,023 Other assets 1,567,007 1,163,225 Current income tax receivable 1,931 99,676 Total assets $ 1,214,703,661 $ 1,191,205,835 LIABILITIES Revolving credit facilities $ 52,500,000 $ 35,000,000 Deferred debt financing costs, revolving credit facilities ( 1,651,311 ) ( 882,122 ) SBA debentures payable 214,000,000 214,000,000 Deferred debt financing costs, SBA debentures payable ( 5,306,833 ) ( 5,779,892 ) 8.75% Notes Payable 2025 20,000,000 20,000,000 Discount on 8.75% notes payable 2025 ( 61,587 ) ( 112,894 ) Deferred debt financing costs, 8.75% notes payable 2025 ( 2,557 ) ( 4,777 ) 7.00% Notes Payable 2025 12,000,000 12,000,000 Discount on 7.00 % notes payable 2025 ( 132,133 ) ( 193,175 ) Deferred debt financing costs, 7.00 % notes payable 2025 ( 16,212 ) ( 24,210 ) 7.75% Notes Payable 2025 5,000,000 5,000,000 Deferred debt financing costs, 7.75 % notes payable 2025 ( 46,883 ) ( 74,531 ) 4

Financial Statements contained herein for more information on share issuance

Financial Statements contained herein for more information on share issuance. See accompanying notes to consolidated financial statements. 3 Saratoga Investment Corp. Consolidated (unaudited) For the six months ended August 31, 2024 August 31, 2023 Operating activities NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 19,928,077 $ 7,682,692 ADJUSTMENTS TO RECONCILE NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Payment-in-kind and other adjustments to cost ( 6,573,881 ) 2,707,440 Net accretion of discount on investments ( 1,285,027 ) ( 862,540 ) Amortization of deferred debt financing costs 2,522,568 2,589,024 Realized losses on extinguishment of debt - 110,056 Income tax expense (benefit) 61,638 ( 231,093 ) Net realized (gain) loss from investments 54,643,724 ( 90,691 ) Net change in unrealized (appreciation) depreciation on investments ( 42,659,586 ) 22,059,878 Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments 620,188 161,799 Proceeds from sales and repayments of investments 135,842,533 17,103,496 Purchases of investments ( 41,885,424 ) ( 167,272,090 ) (Increase) decrease in operating assets: Interest receivable 213,732 127,723 Management fee receivable 9,197 ( 908 ) Other assets ( 403,782 ) 94,389 Current income tax receivable 97,745 336,875 Increase (decrease) in operating liabilities: Base management and incentive fees payable 1,169,499 ( 2,945,019 ) Accounts payable and accrued expenses 159,498 501,141 Interest and debt fees payable 418,839 ( 421,083 ) Directors fees payable 80,000 ( 14,932 ) Due to Manager 334,693 367,663 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 123,294,231 ( 117,996,180 ) Financing activities Borrowings on debt 30,000,000 46,500,000 Paydowns on debt (

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