Press Release

PhenixFIN Corporation Announces Third Quarter 2021 Financial Results

NEW YORK, Aug. 11, 2021 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2021.

Third Quarter 2021 Highlights

Total investment income of $8.7 million; net investment income of $5.4 million
$52.9 million in cash on June 30, 2021
Net asset value of $156.7 million, or $58.49 per share as of June 30, 2021 vs. $55.30 per share as of September 30, 2020

David Lorber, Chief Executive Officer of the Company, stated: “We are pleased with our performance during the first two quarters of being an internally-managed company. We are encouraged by the improvement in NAV and potential opportunities to deploy capital.”

On January 11, 2021, the Company announced that the Board of Directors approved a share repurchase program authorizing up to $15 million in share repurchases. Under the share repurchase program, the Company is authorized to repurchase from time to time its common stock in open market or other transactions, subject to applicable regulatory requirements. Under this program, 44,788 shares were repurchased through June 30, 2021. In aggregate through August 10, 2021 64,788 shares have been repurchased at an average price of $32.74/share.

Third Quarter 2021 Financial Results

For the quarter ended June 30, 2021, investment income totaled $8.7 million, of which $8.6 million was attributable to portfolio interest and dividend income and $0.1 million was attributable to fee income.

For the quarter ended June 30, 2020, investment income totaled $4.3 million, of which $4.1 million was attributable to portfolio interest and dividend income, and $0.2 million to fee income.

For the quarter ended June 30, 2021, total net expenses were $3.3 million and for the quarter ended June 30, 2020, total net expenses were $5.4 million.

For the quarter ended June 30, 2021, the Company recorded a net realized gain of $0.1 million and net unrealized appreciation of $1.5 million. For the quarter ended June 30, 2020, the Company recorded a net realized loss of $(37.9) million and net unrealized appreciation of $46.9 million.

Portfolio and Investment Activities

As of June 30, 2021, the fair value of the Company's investment portfolio totaled $181.6 million and consisted of 42 portfolio companies.

As of June 30, 2021, the Company had 10 portfolio company investments on non-accrual status with a fair market value of $13.6 million.

Liquidity and Capital Resources

At June 30, 2021, the Company had $52.9 million in cash and $77.8 million outstanding in aggregate principal amount of 6.125% unsecured notes due 2023.

ABOUT PHENIXFIN CORPORATION

PhenixFIN Corporation is a non-diversified, internally managed closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. We completed our initial public offering and commenced operations on January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Effective January 1, 2021, the Company operates under an internalized management structure.

SAFE HARBOR STATEMENT AND OTHER DISCLOSURES

This press release contains “forward-looking” statements. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including among other things, PhenixFIN’s ability to deliver value to shareholders, implement its investment objective, capitalize on investment opportunities and perform well and operate effectively under an internalized management structure, and other factors that are enumerated in the Company’s periodic filings with the Securities and Exchange Commission. PhenixFIN Corporation disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.

The press release contains unaudited financial results. For ease of review, we have excluded the word "approximately" when rounding the results. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of PhenixFIN Corporation’s common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective.

For PhenixFIN investor relations, please call 212-859-0390. For media inquiries, please contact info@phenixfc.com.

PHENIXFIN CORPORATION
Consolidated Statements of Assets and Liabilities

	June 30, 2021 (Unaudited)			September 30, 2020
Assets:
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost of $109,219,571 and $117,360,954, respectively)	$	105,407,064		$	114,321,948
Affiliated investments (amortized cost of $78,821,547 and $92,898,755, respectively)		68,722,983			84,873,023
Controlled investments (amortized cost of $37,489,171 and $117,874,821, respectively)		7,488,473			47,548,578
Total Investments at fair value		181,618,520			246,743,549
Cash and cash equivalents		52,864,911			56,522,148
Receivables:
Interest receivable		289,832			624,524
Fees receivable		106,528			119,028
Dividends receivable		66,445			-
Other assets		1,003,437			2,093,559
Total Assets	$	235,949,673		$	306,102,808

Liabilities:
Notes payable (net of debt issuance costs of $482,346 and $905,624, respectively)	$	77,364,454		$	150,960,662
Interest and fees payable		-			801,805
Due to affiliate		-			53,083
Due to broker		284,067			-
Management and incentive fees payable		-			1,392,022
Administrator expenses payable		60,685			156,965
Accounts payable and accrued expenses		1,547,888			2,108,225
Deferred revenue		14,003			10,529
Total Liabilities		79,271,097			155,483,291

Commitments and Contingencies

Net Assets:
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,678,921 and 2,723,709 common shares outstanding, respectively		2,679			2,724
Capital in excess of par value		670,122,430			672,381,617
Total distributable earnings (loss)		(513,446,533	)		(521,764,824	)
Total Net Assets	$	156,678,576		$	150,619,517
Total Liabilities and Net Assets	$	235,949,673		$	306,102,808

Net Asset Value Per Common Share	$	58.49		$	55.30

PHENIXFIN CORPORATION
Consolidated Statements of Operations
(Unaudited)

	For the Three Months Ended June 30						For the Nine Months Ended June 30
	2021			2020			2021			2020
Interest Income:
Interest from investments
Non-controlled, non-affiliated investments:
Cash	$	1,578,657			1,961,009		$	4,785,374			7,499,171
Payment in-kind		186,733			138,018			356,762			465,339
Affiliated investments:
Cash		249,157			291,569			797,776			691,010
Payment in-kind		286,444			487,065			286,444			2,141,327
Controlled investments:
Cash		-			-			-			84,505
Payment in-kind		-			-			-			500,767
Total interest income		2,300,991			2,877,661			6,226,356			11,382,119
Dividend income		6,307,408			1,225,000			20,979,143			4,725,000
Interest from cash and cash equivalents		3,862			4,319			5,308			376,747
Fee income		71,443			202,122			650,323			617,654
Other income		-			-			78,204			-
Total Investment Income		8,683,704			4,309,102			27,939,334			17,101,520
Expenses:
Base management fees		-			1,317,223			1,146,403			4,966,728
Interest and financing expenses		1,260,825			2,736,136			4,538,520			12,312,183
General and administrative expenses		294,022			540,066			856,396			3,140,305
Salaries and Benefits		679,229			-			1,011,546			-
Administrator expenses		106,578			614,535			546,372			1,742,419
Insurance expenses		444,832			333,816			1,404,312			988,394
Directors fees		179,000			347,500			875,217			960,000
Professional fees, net		289,200			(511,519	)		113,797			(4,796,964	)
Expenses before expense support reimbursement and management and incentive fee waivers		3,253,686			5,377,757			10,492,563			19,313,065
Expense support reimbursement		-			(349,427	)		-			(349,427	)
Total expenses net of expense support reimbursement and management and incentive fee waivers		3,253,686			5,028,330			10,492,563			18,963,638
Net Investment Income		5,430,018			(719,228	)		17,446,771			(1,862,118	)
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments		38,852			(532,253	)		4,093,500			(690,167	)
Affiliated investments		19,811			-			(10,433,117	)		-
Controlled investments		1,850			(37,389,588	)		(40,145,720	)		(39,076,425	)
Total net realized gains (losses)		60,513			(37,921,841	)		(46,485,337	)		(39,766,592	)
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments		(1,794,173	)		7,379,695			(773,501	)		(8,422,875	)
Affiliated investments		1,513,353			8,137,213			(2,072,831	)		2,558,480
Controlled investments		1,759,025			31,389,160			40,325,544			(17,062,311	)
Total net change in unrealized gains (losses)		1,478,205			46,906,068			37,479,212			(22,926,706	)
Change in provision for deferred taxes on unrealized (appreciation) depreciation on investments		-			35,970			-			(49,694	)
Loss on extinguishment of debt		-			(697,191	)		(122,355	)		(2,481,374	)
Total realized and unrealized gains (losses)		1,538,718			8,323,006			(9,128,480	)		(65,224,366	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	6,968,736		$	7,603,778		$	8,318,291		$	(67,086,484	)
Weighted Average Basic and diluted earnings per common share	$	2.60		$	2.79		$	3.07		$	(24.63	)
Weighted Average Basic and diluted net investment income (loss) per common share	$	2.02		$	(0.26	)	$	6.44		$	(0.68	)
Weighted Average Common Shares Outstanding - Basic and Diluted		2,683,093			2,723,711			2,707,794			2,723,711

PhenixFIN Corporation