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


Date of Report (Date of earliest event reported): May 10, 2023



(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
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 May 10, 2023, PhenixFIN Corporation issued a press release announcing its financial results for the quarter ended March 31, 2023. The press release is included as Exhibit 99.1 to this Form 8-K.


Item 9.01 Financial Statements and Exhibits.




Exhibit No.   Description
99.1   Press Release dated May 10, 2023
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)







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 Second Quarter 2023 Financial Results


New York, NY, May 10, 2023 -- PhenixFIN Corporation (NASDAQ: PFX) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal second quarter of 2023.




Total investment income of $9.6 million and net investment income of $3.4 million for the six months ended March 31, 2023


Net asset value (NAV) of $131.2 million, or $62.70 per share as of March 31, 2023


Redeemed the $22.5 million 6.125% unsecured notes on January 17, 2023


On February 8, 2023, the Board approved the expansion of the current repurchase program from $25 million to $35 million


Weighted average yield of 11.8% on debt and other income producing investments


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


“During the quarter we grew NII per share and NAV per share in what was a difficult environment for the broader markets. In January, we successfully redeemed the 6.125% notes due in March 2023. We believe our strong capital structure and available liquidity well position us to continue our focus on sourcing attractive investment opportunities to drive shareholder value.”


Selected Second Quarter 2023 Financial Results


For the three and six months ended March 31, 2023, total investment income was $4.9 million and $9.6 million, of which $4.2 million and $8.7 million, respectively, was attributable to portfolio interest and dividend income and $0.7 million and $0.9 million, respectively, was attributable to fee and other income.


For the three and six months ended March 31, 2023, total net expenses were $3.1 million and $6.2 million and total net investment income was $1.8 million and $3.4 million.


For the three and six months ended March 31, 2023, the Company recorded a net realized loss of $0.8 million and $0.8 million and net unrealized gain of $5.7 million and $8.0 million, due largely to market volatility in various investments.


Portfolio and Investment Activities


As of March 31, 2023, the fair value of the Company’s investment portfolio totaled $200.1 million and consisted of 43 portfolio companies.


As of March 31, 2023, the Company had 6 portfolio company investments on non-accrual status with a fair market value of $9.6 million.





Liquidity and Capital Resources


At March 31, 2023, the Company had $10.7 million in cash and cash equivalents and $57.5 million and $23.2 million outstanding in aggregate principal amount of its 5.25% unsecured notes due 2028 and the Credit Facility, 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 investment activity, grow the Company, increase net investment income, reduce operating expenses, implement its investment objective, source and capitalize on investment opportunities, grow its net asset value and perform well in the prevailing market environment, the ability of our portfolio companies to perform well and generate income 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


   March 31,
2023    (Unaudited)
   September 30,
Investments at fair value        
Non-controlled, non-affiliated investments (amortized cost of $150,946,951 and $147,378,917, respectively)  $128,510,921   $122,616,275 
Affiliated investments (amortized cost of $27,328,814 and $30,585,884, respectively)   10,046,722    12,314,192 
Controlled investments (amortized cost of $84,266,490 and $85,483,093, respectively)   61,531,676    58,026,182 
Total Investments at fair value   200,089,319    192,956,649 
Cash and cash equivalents   10,763,751    22,768,066 
Interest receivable   725,649    727,576 
Paydown receivable   -    112,500 
Dividends receivable   269,330    269,330 
Other receivable   -    36,992 
Prepaid share repurchase   124,328    489,156 
Deferred financing costs   848,312    50,000 
Due from Affiliate   393,589    271,962 
Other assets   718,489    1,192,677 
Total Assets  $213,932,767   $218,874,908 
Credit facility and note payable (net of debt issuance costs of $1,864,836 and $2,059,164, respectively)  $78,877,105   $77,962,636 
Investments purchased payable   1,026,818    - 
Accounts payable and accrued expenses   1,366,493    2,040,277 
Interest and fees payable   673,294    503,125 
Other liabilities   500,761    572,949 
Deferred revenue   335,507    325,602 
Administrator expenses payable (see Note 6)   1,900    74,911 
Due to broker   -    16,550,000 
Total Liabilities   82,781,878    98,029,500 
Commitments and Contingencies (see Note 8)          
Net Assets:          
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,091,638 and 2,102,129 common shares outstanding, respectively   2,092    2,102 
Capital in excess of par value   675,047,159    675,401,802 
Total distributable earnings (loss)   (543,898,362)   (554,558,496)
Total Net Assets   131,150,889    120,845,408 
Total Liabilities and Net Assets  $213,932,767   $218,874,908 
Net Asset Value Per Common Share  $62.70   $57.49 






Consolidated Statements of Operations



   For the Three Months Ended
March 31,
   For the Six Months Ended
March 31,
   2023   2022   2023   2022 
Interest Income:                
Interest from investments                
Non-controlled, non-affiliated investments:                
Cash  $2,116,741   $1,264,327   $4,032,782   $2,280,019 
Payment in-kind   119,593    100,062    225,780    238,573 
Affiliated investments:                    
Cash   261,028    387,918    459,481    510,065 
Payment in-kind   -    92,733    -    189,761 
Controlled investments:                    
Cash   57,188    807,022    251,815    1,360,660 
Payment in-kind   155,994    -    245,737    - 
Total interest income   2,710,544    2,652,062    5,215,595    4,579,078 
Dividend income   1,503,375    913,949    3,535,733    1,616,879 
Interest from cash and cash equivalents   125,471    6,031    217,697    8,770 
Fee income (see Note 9)   171,055    85,143    244,654    355,265 
Other income   401,986    -    401,986    230,434 
Total Investment Income   4,912,431    3,657,185    9,615,665    6,790,426 
Interest and financing expenses   1,381,596    1,221,063    2,614,772    2,708,738 
Salaries and benefits   802,090    430,293    1,659,623    936,168 
Professional fees, net   377,229    160,594    725,146    467,345 
General and administrative expenses   201,181    290,136    421,158    486,695 
Directors fees   176,500    167,000    370,500    375,500 
Insurance expenses   121,387    155,450    245,471    314,354 
Administrator expenses (see Note 6)   77,937    82,415    155,821    151,281 
Total expenses   3,137,920    2,506,951    6,192,491    5,440,081 
Net Investment Income   1,774,511    1,150,234    3,423,174    1,350,345 
Realized and unrealized gains (losses) on investments                    
Net realized gains (losses):                    
Non-controlled, non-affiliated investments   (838,070)   453,916    (824,622)   938,429 
Affiliated investments   -    -    -    14,737,897 
Controlled investments   23,273    -    23,273    925 
Total net realized gains (losses)   (814,797)   453,916    (801,349)   15,677,251 
Net change in unrealized gains (losses):                    
Non-controlled, non-affiliated investments   803,513    (2,139,279)   2,326,612    (2,007,316)
Affiliated investments   274,063    1,538,979    989,600    (8,934,864)
Controlled investments   4,670,928    1,968,804    4,722,097    1,986,445 
Total net change in unrealized gains (losses)   5,748,504    1,368,504    8,038,309    (8,955,735)
Loss on extinguishment of debt (see Note 5)   -    -    -    (296,197)
Total realized and unrealized gains (losses)   4,933,707    1,822,420    7,236,960    6,425,319 
Net Increase (Decrease) in Net Assets Resulting from Operations  $6,708,218   $2,972,654   $10,660,134   $7,775,664 
Weighted average basic and diluted earnings per common share  $3.20   $1.24   $5.08   $3.16 
Weighted average basic and diluted net investment income (loss) per common share  $0.85   $0.48   $1.63   $0.55 
Weighted average common shares outstanding - basic and diluted (see Note 11)   2,095,193    2,397,911    2,098,041    2,458,222