Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): August 9, 2022



(Exact name of registrant as specified in its charter)


Delaware   814-00818   27-4576073

(State or other jurisdiction of

incorporation or organization)

  (Commission file number)  

(I.R.S. employer

identification no.)


445 Park Avenue, 10th Floor, New York, NY   10022

(Address of principal executive offices)


(Zip code)


Registrant’s telephone number, including area code: (212) 859-0390


Not Applicable

(Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:


Title of each class   Trading Symbol(s)   Name of exchange on which registered
Common Stock, par value $0.001 per share   PFX   The NASDAQ Global Market
6.125% Notes due 2023   PFXNL   The NASDAQ Global Market
5.25% Notes due 2028   PFXNZ   The NASDAQ Global Market


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


Emerging growth company ☐


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐







Item 2.02 Results of Operations and Financial Condition.


On August 9, 2022, PhenixFIN Corporation issued a press release announcing its financial results for the quarter ended June 30, 2022. The press release is included as Exhibit 99.1 to this Form 8-K.


Item 9.01 Financial Statements and Exhibits.


(d) Exhibits


Exhibit No.   Description
99.1   Press Release dated August 9, 2022







Pursuant to the requirements of the Securities Exchange Act of 1934, PhenixFIN Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


  /s/ David Lorber
  Name: David Lorber
  Title: Chief Executive Officer






Exhibit 99.1


PhenixFIN Corporation Announces Fiscal Third Quarter 2022 Financial Results


New York, NY, August 9, 2022 -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2022.




During the third quarter total investment income of $3.7 million; net investment income of $0.2 million
Net asset value (NAV) of $129.1 million, or $58.74 per share as of June 30, 2022, vs. $57.08 per share as of September 30, 2021
Weighted average yield to maturity of 9.09% on debt investments
FlexFIN continues to grow with over $40 million allocated to the business


David Lorber, Chief Executive Officer of the Company, stated:


“During the third quarter the portfolio performed relatively well given the market environment as we continued generating positive Net Investment Income. While during the quarter the portfolio was impacted by increasing broader market volatility, global instability, inflation and rising interest rates, we remain confident in the underlying investments. With a strong balance sheet and low leverage, we believe we continue to position the Company to grow NII through successful capital deployment while remaining prudent and judicious in terms of these new investments. FlexFIN continued to grow with over $40 million allocated to the unique business at quarter end generating a meaningful cash flow stream for the Company.”


Since our internalization on January 1, 2021, we generated proceeds from the monetization of positions totaling $142.0 million and deployed $175.9 million across new and add on investments. In addition, we continue to execute on our share repurchase program.


Selected Third Quarter 2022 Financial Results


For the quarter ended June 30, 2022, total investment income totaled $3.7 million, of which $3.5 million was attributable to portfolio interest and dividend income and $0.2 million was attributable to fee and other income.


For the quarter ended June 30, 2022, total net expenses were $3.5 million and total net investment income was $0.2 million.


For the quarter ended June 30, 2022, the Company recorded a net realized loss of $0.2 million and net unrealized depreciation of $9.2 million largely due to market volatility in various investments.


Portfolio and Investment Activities


As of June 30, 2022, the fair value of the Company's investment portfolio totaled $182.8 million and consisted of 45 portfolio companies.


As of June 30, 2022, the Company had 6 portfolio company investments on non-accrual status with a fair market value of $12.4 million.





Liquidity and Capital Resources


At June 30, 2022, the Company had $24.4 million in cash and $57.5 million and $22.5 million outstanding in aggregate principal amount of its 5.25% unsecured notes due 2028 and 6.125% unsecured notes due 2023, respectively.




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, increase net investment income, reduce operating expenses for a sustainable period of time, implement its investment objective, capitalize on investment opportunities, grow its net asset value and perform well and operate effectively under an internalized management structure, FlexFIN’s ability to perform effectively and generate attractive returns 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.


Past performance is not a guarantee of future results. 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.






Consolidated Statements of Assets and Liabilities


   June 30,
   September 30,
Investments at fair value        
Non-controlled, non-affiliated investments (amortized cost of $135,629,418 and $92,214,167, respectively)  $115,937,311   $84,152,678 
Affiliated investments (amortized cost of $44,288,170 and $75,963,427, respectively)   17,390,505    57,595,245 
Controlled investments (amortized cost of $77,098,614 and $39,490,097, respectively)   49,455,289    9,891,860 
Total Investments at fair value   182,783,105    151,639,783 
Cash and cash equivalents   24,382,766    69,433,256 
Fees receivable   -    1,872,700 
Interest receivable   1,262,193    371,576 
Paydown receivable   168,866    292,015 
Due from Affiliate   132,763    - 
Dividends receivable   269,330    81,211 
Prepaid share repurchases   96,096    - 
Other assets   866,821    1,401,746 
Total Assets  $209,961,940   $225,092,287 
Notes payable (net of debt issuance costs of $2,162,356 and $412,795, respectively)  $77,859,444   $77,434,005 
Interest and fees payable   503,125    - 
Due to affiliates   -    280,323 
Due to broker   -    1,586,000 
Administrator expenses payable   67,028    67,920 
Distributions payable   265,798    - 
Accounts payable and accrued expenses   1,299,858    1,416,524 
Deferred revenue   279,032    - 
Other liabilities   606,675    613,534 
Total Liabilities   80,880,960    81,398,306 
Commitments and Contingencies          
Net Assets:          
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,197,418 and 2,517,221 common shares outstanding, respectively   2,198    2,517 
Capital in excess of par value   675,707,499    688,866,642 
Total distributable earnings (loss)   (546,628,717)   (545,175,178)
Total Net Assets  $129,080,980   $143,693,981 
Total Liabilities and Net Assets  $209,961,940   $225,092,287 
Net Asset Value Per Common Share  $58.74   $57.08 






Consolidated Statements of Operations



   For the Three Months
Ended June 30
   For the Nine Months
Ended June 30
   2022   2021   2022   2021 
Interest Income:                
Interest from investments                
Non-controlled, non-affiliated investments:                
Cash  $1,468,171   $1,578,657   $3,748,190   $4,785,374 
Payment in-kind   102,063    186,733    340,636    356,762 
Affiliated investments:                    
Cash   (23,496)   249,157    486,569    797,776 
Payment in-kind   93,275    286,444    283,036    286,444 
Controlled investments:                    
Cash   4,375    -    1,365,035    - 
Total interest income   1,644,388    2,300,991    6,223,466    6,226,356 
Dividend income   1,846,507    6,307,408    3,463,386    20,979,143 
Interest from cash and cash equivalents   9,255    3,862    18,025    5,308 
Fee income   65,014    71,443    420,279    650,323 
Other income   93,394    -    323,828    78,204 
Total Investment Income   3,658,558    8,683,704    10,448,984    27,939,334 
Base management fees   -    -    -    1,146,403 
Interest and financing expenses   1,201,623    1,260,825    3,910,361    4,538,520 
General and administrative expenses   362,989    294,022    849,684    856,396 
Salaries and benefits   1,037,602    679,229    1,973,770    1,011,546 
Administrator expenses   58,881    106,578    210,162    546,372 
Insurance expenses   155,449    444,832    469,803    1,404,312 
Directors fees   164,500    179,000    540,000    875,217 
Professional fees, net   469,550    289,200    936,895    113,797 
Total expenses   3,450,594    3,253,686    8,890,675    10,492,563 
Net Investment Income   207,964    5,430,018    1,558,309    17,446,771 
Realized and unrealized gains (losses) on investments                    
Net realized gains (losses):                    
Non-controlled, non-affiliated investments   (188,638)   38,852    749,791    4,093,500 
Affiliated investments   -    19,811    14,737,897    (10,433,117)
Controlled investments   925    1,850    1,850    (40,145,720)
Total net realized gains (losses)   (187,713)   60,513    15,489,538    (46,485,337)
Net change in unrealized gains (losses):                    
Non-controlled, non-affiliated investments   (9,623,302)   (1,794,173)   (11,630,618)   (773,501)
Affiliated investments   405,381    1,513,353    (8,529,483)   (2,072,831)
Controlled investments   (31,533)   1,759,025    1,954,912    40,325,544 
Total net change in unrealized gains (losses)   (9,249,454)   1,478,205    (18,205,189)   37,479,212 
Loss on extinguishment of debt   -    -    (296,197)   (122,355)
Total realized and unrealized gains (losses)   (9,437,167)   1,538,718    (3,011,848)   (9,128,480)
Net Increase (Decrease) in Net Assets Resulting from Operations  $(9,229,203)  $6,968,736   $(1,453,539)  $8,318,291 
Weighted Average Basic and Diluted Earnings Per Common Share  $(4.19)  $2.60   $(0.61)  $3.07 
Weighted Average Basic and Diluted Net Investment Income (Loss) Per Common Share  $0.09   $2.02   $0.66   $6.44 
Weighted Average Common Shares Outstanding - Basic and Diluted   2,202,115    2,683,093    2,372,849    2,707,794