Advanced Flower Capital

Liquidity and liability profile are acceptable for a small BDC: 112.7 million of cash as of March 31, 2026; 77.0 million senior unsecured notes due 2027 outstanding; and total principal debt of ~203 million, with an asset coverage ratio of 191% (vs the 150% statutory minimum).

The BDC structure and RIC intent (from tax year 2026) should support balance sheet discipline, but nonaccruals and fair value marks are a key risk to NAV.

Notably, cash generation in Q1 2026 benefited from revolver activity and investment purchases flow through operating cash under investment company accounting, so we focus on NII and NAV trends rather than GAAP cash flow for solvency assessment.

Overall, balance sheet resiliency is reasonable but contingent on workout outcomes and maintaining asset coverage.