UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-35040

PHENIXFIN CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware		27-4576073
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)

445 Park Avenue, 10th Floor, New York, NY		10022
(Address of Principal Executive Offices)		(Zip Code)

(212) 859-0390

(Registrant’s Telephone Number, Including Area Code)

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

Title of each class	Trading Symbol(s)	Name of each 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

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☐ 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No ☒

The Registrant had 1,998,259 shares of common stock, $0.001 par value, outstanding as of February 9, 2026.

PHENIXFIN CORPORATION

TABLE OF CONTENTS

		Page
PART I. Financial Information

Item 1. Financial Statements

Consolidated Statements of Assets and Liabilities as of December 31, 2025 (unaudited) and September 30, 2025		1

Consolidated Statements of Operations for the three months ended December 31, 2025 and 2024 (unaudited)		2

Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2025 and 2024 (unaudited)		3

Consolidated Statements of Cash Flows for the three months ended December 31, 2025 and 2024 (unaudited)		4

Consolidated Schedules of Investments as of December 31, 2025 (unaudited) and September 30, 2025		5

Notes to Consolidated Financial Statements (unaudited)		17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		41

Item 3. Quantitative and Qualitative Disclosures About Market Risk		54

Item 4. Controls and Procedures		55

Part II. Other Information		56

Item 1. Legal Proceedings		56

Item 1A. Risk Factors		56

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		56

Item 3. Defaults Upon Senior Securities		56

Item 4. Mine Safety Disclosures		56

Item 5. Other Information		56

Item 6. Exhibits		57

SIGNATURES		60

PHENIXFIN CORPORATION

Consolidated Statements of Assets and Liabilities

	December 31, 2025 (Unaudited)			September 30, 2025

Assets:
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost of $138,028,011 and $139,342,491, respectively)	$	139,235,510		$	145,280,169
Affiliated investments (amortized cost of $37,022,913 and $35,390,223, respectively)		36,675,568			35,381,405
Controlled investments (amortized cost of $149,859,961 and $149,656,451, respectively)		119,728,486			121,610,914
Total Investments at fair value		295,639,564			302,272,488
Cash and cash equivalents		3,406,847			7,289,371
Receivables:
Interest receivable		1,036,662			1,203,404
Other receivable		-			44,971
Dividends receivable		229,046			42,950
Other assets		2,642,679			2,746,775
Deferred tax asset, net		852,570			1,234,847
Deferred financing costs		1,308,020			1,384,767
Due from Affiliate		301,595			572,331
Prepaid share repurchase		42,076			96,342
Receivable for investments sold		1,922,102			21,549
Total Assets	$	307,381,161		$	316,909,795

Liabilities:
Credit facility and notes payable (net of debt issuance costs of $946,653 and $1,141,393, respectively)	$	146,544,966		$	148,011,724
Accounts payable and accrued expenses		1,063,658			4,226,889
Other liabilities		2,481,418			2,439,405
Interest and fees payable		1,158,816			1,187,574
Taxes payable		178,690			137,538
Due to Affiliate		132,365			132,365
Total Liabilities		151,559,913			156,135,495

Commitments and Contingencies (see Note 8)

Net Assets:
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 1,999,634 and 2,003,769 common shares outstanding, respectively		2,000			2,004
Capital in excess of par value		704,457,776			704,640,648
Total distributable earnings (loss)		(548,638,528	)		(543,868,352	)
Total Net Assets		155,821,248			160,774,300
Total Liabilities and Net Assets	$	307,381,161		$	316,909,795

Net Asset Value Per Common Share	$	77.92		$	80.24

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended December 31,
	2025			2024
Interest Income:
Interest from investments
Non-controlled, non-affiliated investments:
Cash	$	2,351,244		$	2,824,594
Payment in-kind		234,383			354,681
Affiliated investments:
Cash		838,583			-
Payment in-kind		-			-
Controlled investments:
Cash		445,684			588,195
Payment in-kind		-			-
Total interest income		3,869,894			3,767,470
Dividend income
Non-controlled, non-affiliated investments		795,867			596,298
Affiliated investments		-			142,495
Controlled investments		1,751,275			1,399,350
Total dividend income		2,547,142			2,138,143
Interest from cash and cash equivalents		55,366			227,032
Fee income (see Note 9)		187,833			11,064
Other income		-			72,774
Total Investment Income		6,660,235			6,216,483

Expenses:
Interest and financing expenses		2,432,335			2,545,811
Salaries and benefits		969,173			1,028,617
Professional fees, net		389,940			418,013
General and administrative expenses		360,485			221,793
Directors fees		204,000			204,000
Administrator expenses (see Note 6)		102,061			84,355
Insurance expenses		75,634			88,421
Total expenses		4,533,628			4,591,010
Net Investment Income		2,126,607			1,625,473

Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments		692,220			1,168,670
Affiliated investments		1,384			-
Controlled investments		-			-
Total net realized gains (losses)		693,604			1,168,670
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments		(4,730,179	)		808,538
Affiliated investments		(338,527	)		(889,186	)
Controlled investments		(2,085,938	)		(249,338	)
Total net change in unrealized gains (losses)		(7,154,644	)		(329,986	)
Deferred tax benefit (expense)		(423,429	)		-
Loss on Extinguishment of Debt (see Note 5)		(12,314	)		-
Total realized and unrealized gains (losses)		(6,896,783	)		838,684

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(4,770,176	)	$	2,464,157

Weighted average basic and diluted earnings per common share	$	(2.38	)	$	1.22
Weighted average common shares outstanding - basic and diluted (see Note 11)		2,001,470			2,019,778

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Statements of Changes in Net Assets

(Unaudited)

	Common Stock									Total
	Shares			Par Amount			Capital in Excess of Par Value			Distributable Earnings/(Loss)			Total Net Assets

Balance at September 30, 2024		2,019,778		$	2,020		$	704,909,588		$	(544,603,835	)	$	160,307,773

OPERATIONS
Net investment income (loss)		-			-			-			1,625,473			1,625,473
Net realized gains (losses) on investments		-			-			-			1,168,670			1,168,670
Net change in unrealized appreciation (depreciation) on investments		-			-			-			(329,986	)		(329,986	)
Total Increase (Decrease) in Net Assets		-			-			-			2,464,157			2,464,157

Balance at December 31, 2024		2,019,778		$	2,020		$	704,909,588		$	(542,139,678	)	$	162,771,930

Balance at September 30, 2025		2,003,769		$	2,004		$	704,640,648		$	(543,868,352	)	$	160,774,300
OPERATIONS
Net investment income (loss)		-			-			-			2,126,607			2,126,607
Net realized gains (losses) on investments		-			-			-			693,604			693,604
Net change in unrealized appreciation (depreciation) on investments		-			-			-			(7,154,644	)		(7,154,644	)
Deferred tax benefit (expense)		-			-			-			(423,429	)		(423,429	)
Loss on Extinguishment of Debt (see Note 5)		-			-			-			(12,314	)		(12,314	)
CAPITAL SHARE TRANSACTIONS
Distributions declared		-			-			-			-			-
Repurchase of common shares		(4,135	)		(4	)		(182,872	)		-			(182,876	)
Total Increase (Decrease) in Net Assets		(4,135	)		(4	)		(182,872	)		(4,770,176	)		(4,953,052	)

Balance at December 31, 2025		1,999,634		$	2,000		$	704,457,776		$	(548,638,528	)	$	155,821,248

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Statements of Cash Flows

(Unaudited)

	For the Three Months Ended December 31,
	2025			2024
Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations	$	(4,770,176	)	$	2,464,157
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Proceeds from sale and settlements of investments		19,626,030			29,987,278
Purchases, originations and participations		(18,994,714	)		(100,920,720	)
Investment increases due to payment-in-kind interest		(234,383	)		(354,681	)
Net amortization of premium (discount) on investments		(225,049	)		(51,729	)
Amortization of debt issuance cost		194,741			92,999
Amortization of deferred financing cost		76,746			177,426
Net realized (gains) losses from investments		(693,604	)		(1,168,670	)
Net unrealized (gains) losses on investments		7,154,644			329,986
(Increase) decrease in operating assets:
Interest receivable		166,742			78
Other receivable		44,971			49,198
Dividends receivable		(186,096	)		(82,336	)
Due from affiliate		270,736			(950,012	)
Other assets		104,096			551,693
Prepaid share repurchase		54,266			-
Receivable for investments sold		(1,900,553	)		2,913,878
Provision for deferred taxes on unrealized appreciation/(depreciation) on investments		382,277			-
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses		(3,163,231	)		(3,178,720	)
Interest and fees payable		(28,758	)		261,291
Other liabilities		42,013			(37,637	)
Due to Affiliate		-			(41,153	)
Payable for investments purchased		-			3,688,247
Taxes payable		41,152
Net cash provided by (used in) operating activities		(2,038,150	)		(66,269,427	)
Cash Flows from Financing Activities:
Debt issuance		-			21,527,047
Paydowns on debt		(1,661,498	)		(15,600,000	)
Deferred financing costs		-			(42,069	)
Repurchase of common shares		(182,876	)		-
Net cash provided by (used in) financing activities		(1,844,374	)		5,884,978
Net increase (decrease) in cash and cash equivalents		(3,882,524	)		(60,384,449	)
Cash and cash equivalents, beginning of period		7,289,371			67,571,559
Cash and cash equivalents, end of period	$	3,406,847		$	7,187,110

Supplemental information:
Interest paid during the period	$	2,293,860		$	1,982,478

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of December 31, 2025

(Unaudited)

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾

Non-Controlled/Non-Affiliated Investments:

Adamas Trust, Inc.(11)	Real Estate	Equity - 167,876 Class E Preferred Units(13)(24)				167,876	$	4,203,020	$	4,143,180		2.65	%
		Equity - 17,243 Class F Preferred Units(13)(18)				17,243		375,635		385,898		0.25	%
						185,119		4,578,655		4,529,078		2.90	%

Altisource S.A.R.L.(11)	Services: Business	Senior Secured First Lien Term Loan B (SOFR + CSA + 6.50%)(14)(20)(24)(27)		4/30/2030		8,026,850		8,616,683		8,307,790		5.33	%
		Equity - 547,180 Units(13)(21)				547,180		3,327,909		3,802,901		2.44	%
		Warrants(13)(21)		4/2/2029		111,343		647,105		45,651		0.03	%
		Warrants(13)(21)		4/30/2032		111,343		622,110		36,743		0.02	%
						8,796,716		13,213,807		12,193,085		7.82	%

Arora Engineers, LLC	Construction & Building	First Lien Term Loan (SOFR + 6.75%, 0.25% PIK, 3.00% Floor)(23)		12/30/2030		9,750,000		9,555,000		9,555,000		6.13	%
Jacmel Arora, LLC		Equity - 3,150,000 Preferred Units(21)				3,150,000		3,055,500		3,055,500		1.96	%
						12,900,000		12,610,500		12,610,500		8.09	%

Boostability Seotowncenter, Inc.	Services: Business	Equity - 833,152 Common Units(21)				833,152		66,475		-		0.00	%
						833,152		66,475		-		0.00	%

Chimera Investment Corp.(11)	Real Estate	Equity - 151,710 Class C Preferred Units(13)(15)				151,710		3,635,972		3,235,974		2.08	%
		Equity - 26,133 Class B Preferred Units(13)(24)				26,133		635,531		607,592		0.39	%
						177,843		4,271,503		3,843,566		2.47	%

Compass Diversified Holdings(11)	Real Estate	Equity - 92,958 Series C Preferred Units(13)(28)				92,958		1,570,139		1,687,188		1.08	%
						92,958		1,570,139		1,687,188		1.08	%

Copper Property CTL Pass Through Trust	Real Estate	Equity Certificates(13)				637,795		7,072,025		7,175,194		4.60	%
						637,795		7,072,025		7,175,194		4.60	%

Innovate Corp.(11)	Construction & Building	10.50% Senior Secured Notes(14)(29)		2/1/2027		4,558,125		4,022,788		3,914,290		2.51	%
						4,558,125		4,022,788		3,914,290		2.51	%

Invesco Mortgage Capital, Inc.(11)	Real Estate	Equity - 180,000 Common Units(13)				180,000		1,411,789		1,513,800		0.97	%
						180,000		1,411,789		1,513,800		0.97	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of December 31, 2025

(Unaudited)

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
NGS-WCS Group Holdings	Construction & Building	Senior Secured First Lien Term Loan B (SOFR + 4.75%, 0.50% Floor)(23)		5/31/2030		984,882		980,983		994,850		0.64	%
JFL-NGS-WCS Partners, LLC		Equity - 10,000,000 Units(21)				10,000,000		10,000,000		12,600,000		8.09	%
						10,984,882		10,980,983		13,594,850		8.73	%

Kemmerer Operations, LLC	Metals & Mining	Senior Secured First Lien Term Loan (SOFR + 5.00%)(24)		12/31/2028		6,762,782		6,762,782		6,762,782		4.34	%
						6,762,782		6,762,782		6,762,782		4.34	%

Lucky Bucks, LLC (dba Arc Gaming & Technologies LLC)	Consumer Discretionary	Priority Second Out Term Loan (SOFR + CSA + 7.50%, 5.00% PIK, 1.00% Floor)(20)(25)		10/2/2029		2,165,782	$	2,020,575	$	2,014,177		1.29	%
		Priority First Out Exit Term Loan (SOFR + CSA + 7.50%, 1.00% Floor)(20)(25)		10/2/2028		1,510,449		1,406,952		1,510,449		0.97	%
LB NewHoldCo, LLC		Equity - 230,739 Membership Units(21)				230,739		449,393		955,259		0.61	%
						3,906,970		3,876,920		4,479,885		2.87	%

MFA Financial, Inc.(11)	Real Estate	Equity - 114,695 Class C Preferred Units(13)(24)				114,695		2,800,579		2,617,340		1.68	%
		Equity - 120,000 Common Units(13)				120,000		1,175,317		1,117,200		0.72	%
						234,695		3,975,896		3,734,540		2.40	%

Onity Group Inc.(11)	Real Estate	Equity - 200,000 Preferred Units(28)				200,000		3,925,000		4,060,000		2.61	%
						200,000		3,925,000		4,060,000		2.61	%

PHH Mortgage Corp.	Real Estate	9.875% Senior Secured Note(14)		11/1/2029		2,500,000		2,343,050		2,581,250		1.66	%
						2,500,000		2,343,050		2,581,250		1.66	%

Power Stop LLC	Automotive	Senior Secured First Lien Term Loan (SOFR + CSA + 4.75%, 0.50% Floor)(14)(20)(24)		1/26/2029		9,678,741		8,483,567		8,033,355		5.16	%
						9,678,741		8,483,567		8,033,355		5.16	%

PREIT Associates	Real Estate	Senior Secured First Lien Term Loan (SOFR + 7.00%)(14)(23)		4/1/2029		56,201		55,077		56,763		0.04	%
		Senior Secured Revolving Note (SOFR + 5.50%)(8)(23)		12/31/2028		73,083		72,230		71,982		0.05	%
						129,284		127,307		128,745		0.09	%

PSB Group, LLC	Services: Consumer	Senior Secured First Lien Term Loan (SOFR + 6.50%, 1.00% Floor)(23)		4/17/2030		5,692,279		5,666,821		5,692,279		3.65	%
		Senior Secured First Lien Revolver (SOFR + 6.50%, 1.00% Floor)(8)(12)(23)		4/17/2030		293,137		293,137		293,137		0.19	%
						5,985,416		5,959,958		5,985,416		3.84	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of December 31, 2025

(Unaudited)

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
Redwood Trust Inc.(11)	Real Estate	Equity - 185,000 Common Units(13)				185,000		1,127,150		1,023,050		0.66	%
						185,000		1,127,150		1,023,050		0.66	%

Spotter Inc.	High Tech Industries	Equity - Series E-1 Preferred Stock(21)				51,786		750,005		804,237		0.52	%
		Equity – Series E-2-D Preferred Stock(21)				414,293		5,999,998		5,949,247		3.82	%
						466,079		6,750,003		6,753,484		4.34	%

SS Acquisition, LLC (dba Soccer Shots Franchising)	Services: Consumer	Senior Secured First Lien Term Loan (SOFR + 5.75%, 1.00% Floor)(23)		12/20/2029		13,435,714		13,373,281		13,435,714		8.62	%
		Senior Secured First Lien Revolver (SOFR + 5.75%, 1.00% Floor)(8)(12)(23)		12/20/2029		400,000		400,000		400,000		0.26	%
						13,835,714		13,773,281		13,835,714		8.88	%

Stancor (dba Industrial Flow Solutions Holdings, LLC)	Services: Business	Equity - 358,867 Class A Units(21)				358,867		345,491		314,132		0.20	%
						358,867		345,491		314,132		0.20	%

Tamarix Capital Partners II, L.P.(11)	Banking	Fund Investment(8)(21)(22)				N/A		2,194,384		2,227,463		1.43	%
						-		2,194,384		2,227,463		1.43	%

Thryv Holdings, Inc.(11)	Media: Broadcasting & Subscription	Senior Secured First Lien Term Loan (SOFR + 6.75%, 1.00% Floor)(14)(23)		5/1/2029		2,025,000		2,010,248		2,009,813		1.29	%
						2,025,000		2,010,248		2,009,813		1.29	%

WHI Global, LLC	Aerospace & Defense	Senior Secured Revolving Note (SOFR + CSA + 8.75%, 3.00% Floor)(8)(12)(20)(23)		4/17/2029		1,010,346		991,015		1,001,254		0.64	%
		Senior Secured First Lien Term Loan (SOFR + CSA + 8.75%, 3.00% Floor)(20)(23)		4/17/2029		12,338,760		12,232,187		12,227,711		7.85	%
		Equity - 350 Common Shares(21)				350		700,000		434,746		0.28	%
						13,349,456		13,923,202		13,663,711		8.77	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of December 31, 2025

(Unaudited)

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
XYZ Roofco, LLC (dba SMC Roofing Solutions LLC)	Services: Consumer	First Out Term Loan (SOFR + 3.50%, 2.00% Floor)(24)		10/16/2028		612,189		617,329		596,884		0.38	%
		First Out Delayed Draw Term Loan (SOFR + 3.50%, 2.00% Floor)(24)		10/16/2028		30,950		31,933		30,176		0.02	%
		Last Out Term Loan (SOFR + 6.25% + 2.75% First Out Skim, 2.00% Floor)(24)		10/16/2028		1,863,568		1,861,764		1,816,979		1.17	%
		Last Out Delayed Draw Term Loan (SOFR + 6.25% + 2.75% First Out Skim, 2.00% Floor)(24)		10/16/2028		140,082		140,082		136,580		0.09	%
						2,646,789		2,651,108		2,580,619		1.66	%

Subtotal Non-Controlled/Non-Affiliated Investments						101,611,383	$	138,028,011	$	139,235,510		89.37	%

Affiliated Investments:⁽⁶⁾

Advocates for Disabled Vets, LLC (dba Reps for Vets)	Services: Consumer	12% Senior Secured First Lien Term Loan		3/7/2030		8,898,750	$	8,744,150	$	8,765,269		5.63	%
		Equity - 3,375,000 Units(21)				3,375,000		3,375,000		3,173,475		2.04	%
						12,273,750		12,119,150		11,938,744		7.67	%

FST Holdings Parent, LLC	High Tech Industries	Equity - 625,548 Class A Units(17)				625,548		10,008,289		10,955,183		7.03	%
						625,548		10,008,289		10,955,183		7.03	%

MB Precision Investment Holdings LLC	Aerospace & Defense	Senior Secured First Lien Term Loan (SOFR + CSA + 8.00%, 4.00% Floor)(20)(24)(27)		9/30/2028		6,800,282		6,674,395		6,392,265		4.10	%
		Senior Secured Delayed Draw Term Loan (SOFR + CSA + 10.00%, 4.00% Floor)(8)(20)(24)(27)		10/1/2028		1,943,662		1,851,448		1,874,646		1.20	%
		Senior Secured First Lien Revolver (SOFR + CSA + 8.00%, 4.00% Floor)(8)(12)(20)(24)(27)		9/30/2028		2,193,797		2,164,305		2,062,170		1.32	%
		Equity - Class E Preferred Units(21)(27)				4,313,067		3,377,917		2,949,060		1.89	%
		Warrants - 2.28% of Outstanding Equity(21)				3,380,282		827,409		503,500		0.32	%
						18,631,090		14,895,474		13,781,641		8.83	%

Subtotal Affiliated Investments						31,530,388	$	37,022,913	$	36,675,568		23.53	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of December 31, 2025

(Unaudited)

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
Controlled Investments:⁽⁷⁾
ECC Capital Corp.	Real Estate	Equity - 84,000,000 Units(13)(21)				84,000,000	$	4,257,002	$	9,660,000		6.20	%
		Senior Secured Promissory Note (SOFR + 5.00%, 0.00% Floor)(24)		12/31/2031		6,997,012		6,997,012		6,997,012		4.49	%
						90,997,012		11,254,014		16,657,012		10.69	%

FlexFIN, LLC	Services: Business	Equity Interest				36,434,271		36,434,271		36,434,271		23.38	%
						36,434,271		36,434,271		36,434,271		23.38	%

NSG Captive, Inc.	Insurance	Equity - 100,000 Units(9)(21)				100,000		49,255,076		48,323,529		31.01	%
						100,000		49,255,076		48,323,529		31.01	%

NVTN LLC	Hotel, Gaming & Leisure	Senior Secured First Lien Term Loan D (SOFR + 7.00%, 2.00% Floor)(24)		12/31/2029		9,850,000		9,979,539		9,800,750		6.29	%
		Senior Secured First Lien Term Loan B (AFR)(26)		12/31/2029		17,552,420		13,916,082		8,512,924		5.46	%
		Senior Secured First Lien Term Loan C (SOFR + 12.00% PIK, 2.00% Floor)(10)		12/31/2029		11,506,159		7,570,055		-		0.00	%
		Equity - 1,000 Class A Units(21)				1,000		21,450,924		-		0.00	%
						38,909,579		52,916,600		18,313,674		11.75	%

Subtotal Control Investments						166,440,862	$	149,859,961	$	119,728,486		76.83	%

	Total Investments, December 31, 2025					299,582,633	$	324,910,885	$	295,639,564		189.73	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of December 31, 2025

(Unaudited)

⁽¹⁾	Substantially all of our investments are domiciled in the United States. Certain investments also have international operations.
⁽²⁾	Par amount is presented for debt investments and the amount includes accumulated payment-in-kind (“PIK”) interest, as applicable, and is net of repayments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted.
⁽³⁾	Net unrealized depreciation for U.S. federal income tax purposes totaled $(29,271,321).
	The tax cost basis of investments is $324,910,885 as of December 31, 2025.
	The amortized cost represents the original cost adjusted for the amortization or accretion of premium or discount, as applicable, on debt investments using the effective interest method.
⁽⁴⁾	Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy (see Note 4).
⁽⁵⁾	Percentage is based on net assets of $155,821,248 as of December 31, 2025.
⁽⁶⁾	Affiliated Investments are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25% outstanding voting securities or is under common control with such portfolio company.
⁽⁷⁾	Control Investments are defined by the Investment Company Act of 1940, as amended (the “1940 Act”), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
⁽⁸⁾	The investment has an unfunded commitment as of December 31, 2025 (see Note 8), and fair value includes the value of any unfunded commitments. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount on the loan.
⁽⁹⁾	NSG Captive, Inc. owns 80% of National Security Group Holdings Inc.
⁽¹⁰⁾	The investment was on non-accrual status as of December 31, 2025.
⁽¹¹⁾	The investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act, in a whole, or in part. As of December 31, 2025, non-qualifying assets represented 13.25% of total assets.
⁽¹²⁾	This investment earns 0.50% commitment fee on all unused commitments as of December 31, 2025, and is recorded as a component of interest income on the Consolidated Statements of Operations.
⁽¹³⁾	This investment represents a Level 1 security in the ASC 820 table as of December 31, 2025 (see Note 4).
⁽¹⁴⁾	This investment represents a Level 2 security in the ASC 820 table as of December 31, 2025 (see Note 4).
⁽¹⁵⁾	The interest rate on this preferred equity is fixed-to-floating and shifted to 3 month SOFR plus a CSA of 0.262% plus a 4.743% spread on 9/30/2025.
⁽¹⁶⁾	Not in use.
⁽¹⁷⁾	The investment is held through PhenixFIN Investment Holdings FST, LLC.
⁽¹⁸⁾	The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 6.130% spread on 10/15/2026.
⁽¹⁹⁾	Not in use.
⁽²⁰⁾	Credit Spread Adjustment (“CSA”).
⁽²¹⁾	Non-income producing security.
⁽²²⁾	The investment is valued using NAV as a practical expedient.
⁽²³⁾	The interest rate on these securities is subject to 1 month SOFR, which as of December 31, 2025 was 3.69%.
⁽²⁴⁾	The interest rate on these securities is subject to 3 month SOFR, which as of December 31, 2025 was 3.65%.
⁽²⁵⁾	The interest rate on these securities is subject to 6 month SOFR, which as of December 31, 2025 was 3.57%.
⁽²⁶⁾	The interest rate on these securities is subject to the monthly Applicable Federal Rate (“AFR”), which as of December 31, 2025 was 3.60%.
⁽²⁷⁾	The investment includes an exit fee that is receivable upon repayment of the loan. See Note 2 “Significant Accounting Policies.”
⁽²⁸⁾	The interest rate on this preferred equity is 7.875%.
⁽²⁹⁾	For this investment, the 10/1/2025 and 2/1/2026 interest payments are payment-in-kind (“PIK”).

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2025

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾

Non-Controlled/Non-Affiliated Investments:

Adamas Trust, Inc.(11)	Real Estate	Equity - 221,469 Class E Preferred Units(13)(24)			$	221,469	$	5,510,240	$	5,565,516		3.45	%
		Equity - 17,243 Class F Preferred Units(13)(18)				17,243		375,635		392,278		0.24	%
						238,712		5,885,875		5,957,794		3.69	%

Altisource S.A.R.L.(11)	Services: Business	Senior Secured First Lien Term Loan B (SOFR + CSA + 6.50%)(14)(20)(24)(27)		4/30/2030		8,040,718		8,460,009		8,322,143		5.18	%
		Equity - 547,180 Units(13)(21)				547,180		3,327,909		6,380,119		3.97	%
		Warrants(13)(21)		4/2/2029		111,343		647,105		77,940		0.05	%
		Warrants(13)(21)		4/30/2032		111,343		622,110		64,579		0.04	%
						8,810,584		13,057,133		14,844,781		9.24	%

Boostability Seotowncenter, Inc.	Services: Business	Equity - 833,152 Common Units(21)				833,152		66,475		-		0.00	%
						833,152		66,475		-		0.00	%

CB&L Associates Holdco I, LLC(11)	Real Estate	First Lien Term Loan (SOFR + CSA + 2.75%, 1.00% Floor)(14)(20)(23)(29)		11/1/2025		2,879,525		2,419,049		2,753,546		1.71	%
						2,879,525		2,419,049		2,753,546		1.71	%

Chimera Investment Corp.(11)	Real Estate	Equity - 151,710 Class C Preferred Units(13)(15)				151,710		3,635,972		3,504,501		2.18	%
		Equity - 26,133 Class B Preferred Units(13)(24)				26,133		635,531		629,544		0.39	%
						177,843		4,271,503		4,134,045		2.57	%

Compass Diversified Holdings(11)	Real Estate	Equity - 22,049 Series C Preferred Units(13)(28)				22,049		381,008		405,702		0.25	%
						22,049		381,008		405,702		0.25	%

Copper Property CTL Pass Through Trust	Real Estate	Equity Certificates(13)				637,795		7,200,434		7,915,036		4.92	%
						637,795		7,200,434		7,915,036		4.92	%

Franklin BSP Realty Trust, Inc.(11)	Real Estate	Equity - 50,000 Common Units(13)				50,000		498,155		543,000		0.34	%
						50,000		498,155		543,000		0.34	%

Innovate Corp.(11)	Construction & Building	10.50% Senior Secured Notes(14)		2/1/2027		4,558,125		4,022,788		4,033,941		2.51	%
						4,558,125		4,022,788		4,033,941		2.51	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2025

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
Invesco Mortgage Capital, Inc.(11)	Real Estate	Equity - 180,000 Common Units(13)				180,000		1,411,789		1,360,800		0.85	%
						180,000		1,411,789		1,360,800		0.85	%

NGS-WCS Group Holdings	Construction & Building	Senior Secured First Lien Term Loan B (SOFR + 4.75%, 0.50% Floor)(23)		5/31/2030		987,500		983,422		997,375		0.62	%
JFL-NGS-WCS Partners, LLC		Equity - 10,000,000 Units(21)				10,000,000		10,000,000		13,100,000		8.15	%
						10,987,500		10,983,422		14,097,375		8.77	%

Kemmerer Operations, LLC	Metals & Mining	Senior Secured First Lien Term Loan (SOFR + 5.00%)(24)		12/31/2028		8,762,782		8,762,782		8,762,782		5.45	%
						8,762,782		8,762,782		8,762,782		5.45	%

Lucky Bucks, LLC (dba Arc Gaming & Technologies LLC)	Consumer Discretionary	Priority Second Out Term Loan (SOFR + CSA + 7.50%, 5.00% PIK, 1.00% Floor)(20)(25)		10/2/2029	$	2,143,683	$	1,998,121	$	1,993,625		1.24	%
		Priority First Out Exit Term Loan (SOFR + CSA + 7.50%, 1.00% Floor)(20)(25)		10/2/2028		1,514,302		1,410,541		1,514,302		0.94	%
LB NewHoldCo, LLC		Equity - 230,739 Membership Units(21)				230,739		449,393		994,485		0.62	%
						3,888,724		3,858,055		4,502,412		2.80	%

MFA Financial, Inc.(11)	Real Estate	Equity - 114,695 Class C Preferred Units(13)(24)				114,695		2,800,579		2,737,770		1.70	%
		Equity - 70,000 Common Units(13)				70,000		714,994		643,300		0.40	%
						184,695		3,515,573		3,381,070		2.10	%

Neptune Bidco US, Inc. (dba Nielsen)	Media: Broadcasting & Subscription	First Lien Term Loan (SOFR + CSA + 5.00%, 0.50% Floor)(14)(20)(24)		4/11/2029		2,967,133		2,786,574		2,822,486		1.76	%
		9.29% Senior Secured Note(14)		4/15/2029		4,000,000		3,676,250		3,910,000		2.43	%
						6,967,133		6,462,824		6,732,486		4.19	%

Onity Group Inc.(11)	Real Estate	Equity - 200,000 Preferred Units(28)				200,000		3,925,000		3,948,000		2.46	%
						200,000		3,925,000		3,948,000		2.46	%

PHH Mortgage Corp.	Real Estate	9.875% Senior Secured Note(14)		11/1/2029		2,500,000		2,343,050		2,515,625		1.56	%
						2,500,000		2,343,050		2,515,625		1.56	%

Power Stop LLC	Automotive	Senior Secured First Lien Term Loan (SOFR + CSA + 4.75%, 0.50% Floor)(14)(20)(24)		1/26/2029		9,704,216		8,504,727		7,860,415		4.89	%
						9,704,216		8,504,727		7,860,415		4.89	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2025

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
PREIT Associates	Real Estate	Senior Secured First Lien Term Loan (SOFR + 7.00%)(14)(23)		4/1/2029		56,201		55,077		57,606		0.04	%
		Senior Secured Revolving Note (SOFR + 5.50%)(8)(23)		12/31/2028		73,083		72,230		71,251		0.04	%
						129,284		127,307		128,857		0.08	%

PSB Group, LLC	Services: Consumer	Senior Secured First Lien Term Loan (SOFR + 6.50%, 1.00% Floor)(23)		4/17/2030		5,706,618		5,679,996		5,706,618		3.55	%
		Senior Secured First Lien Revolver (SOFR + 6.50%, 1.00% Floor)(8)(12)(23)		4/17/2030		293,137		293,137		293,137		0.18	%
						5,999,755		5,973,133		5,999,755		3.73	%

Redwood Trust Inc.(11)	Real Estate	Equity - 165,000 Common Units(13)				165,000		1,012,942		955,350		0.59	%
						165,000		1,012,942		955,350		0.59	%

SS Acquisition, LLC (dba Soccer Shots Franchising)	Services: Consumer	Senior Secured First Lien Term Loan (SOFR + 5.75%, 1.00% Floor)(23)		12/20/2029		13,469,643		13,404,028		13,469,643		8.38	%
		Senior Secured First Lien Revolver (SOFR + 5.75%, 1.00% Floor)(8)(12)(23)		12/20/2029		400,000		400,000		400,000		0.25	%
						13,869,643		13,804,028		13,869,643		8.63	%

Stancor (dba Industrial Flow Solutions Holdings, LLC)	Services: Business	Equity - 358,867 Class A Units(21)				358,867		345,491		314,132		0.20	%
						358,867		345,491		314,132		0.20	%

Spotter Inc.	High Tech Industries	Equity - Series D-1 Preferred Stock(21)				414,293		5,999,998		5,999,998		3.73	%
						414,293		5,999,998		5,999,998		3.73	%

Staples, Inc.	Services: Consumer	First Lien Term Loan (SOFR + 5.75%, 0.50% Floor)(14)(24)		9/1/2029		3,960,000		3,830,925		3,742,200		2.33	%
						3,960,000		3,830,925		3,742,200		2.33	%

Tamarix Capital Partners II, L.P.(11)	Banking	Fund Investment(8)(21)				N/A		2,194,384		2,227,463		1.39	%
						-		2,194,384		2,227,463		1.39	%

Thryv Holdings, Inc.(11)	Media: Broadcasting & Subscription	Senior Secured First Lien Term Loan (SOFR + 6.75%, 1.00% Floor)(14)(23)		5/1/2029		2,025,000		2,009,375		2,027,531		1.26	%
						2,025,000		2,009,375		2,027,531		1.26	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2025

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
WHI Global, LLC	Aerospace & Defense	Senior Secured Revolving Note(SOFR + CSA + 8.75%, 3.00% Floor)(8)(12)(20)(23)		4/17/2029		884,053		863,075		876,097		0.54	%
		Senior Secured First Lien Term Loan(SOFR + CSA + 8.75%, 3.00% Floor)(20)(23)		4/17/2029		12,369,840		12,256,814		12,258,511		7.62	%
		Equity - 350 Common Shares(21)				350		700,000		483,284		0.30	%
						13,254,243		13,819,889		13,617,892		8.46	%

XYZ Roofco, LLC (dba SMC Roofing Solutions LLC)	Services: Consumer	First Out Term Loan (SOFR + 3.50%, 2.00% Floor)(24)		10/16/2028		618,546		623,442		618,546		0.38	%
		First Out Delayed Draw Term Loan (SOFR + 3.50%, 2.00% Floor)(24)		10/16/2028		30,950		31,933		31,128		0.02	%
		Last Out Term Loan (SOFR + 6.25% + 2.75% First Out Skim, 2.00% Floor)(24)		10/16/2028		1,863,568		1,859,920		1,858,909		1.16	%
		Last Out Delayed Draw Term Loan (SOFR + 6.25% + 2.75% First Out Skim, 2.00% Floor)(24)		10/16/2028		140,082		140,082		139,955		0.09	%
						2,653,146		2,655,377		2,648,538		1.65	%

Subtotal Non-Controlled/Non-Affiliated Investments						104,412,066	$	139,342,491	$	145,280,169		90.35	%

Affiliated Investments:⁽⁶⁾

Advocates for Disabled Vets, LLC (dba Reps for Vets)	Services: Consumer	12% Senior Secured First Lien Term Loan		3/7/2030		8,932,500		8,770,471		8,798,513		5.47	%
		Equity - 3,375,000 Units(21)				3,375,000		3,375,000		3,359,511		2.09	%
						12,307,500		12,145,471		12,158,024		7.56	%

FST Holdings Parent, LLC	High Tech Industries	Equity - 625,548 Class A Units(17)				625,548		10,008,289		10,960,741		6.82	%
						625,548		10,008,289		10,960,741		6.82	%

MB Precision Investment Holdings LLC	Aerospace & Defense	Senior Secured First Lien Term Loan(SOFR + CSA + 8.00%, 4.00% Floor)(20)(24)(27)		9/30/2028		6,843,380		6,696,228		6,398,561		3.98	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2025

Company⁽¹⁾	Industry	Type of Investment	Maturity		Par Amount/ Shares/Units⁽²⁾		Amortized Cost⁽³⁾		Fair Value⁽⁴⁾		% of Net Assets⁽⁵⁾
		Senior Secured Delayed Draw Term Loan(SOFR + CSA + 10.00%, 4.00% Floor)(8)(20)(24)(27)		10/1/2028		505,470		468,621		490,306		0.30	%
		Senior Secured First Lien Revolver(SOFR + CSA + 8.00%, 4.00% Floor)(8)(12)(20)(24)(27)		9/30/2028		2,112,671		2,077,048		1,975,347		1.23	%
		Equity - Class E Preferred Units(21)(27)				4,106,076		3,167,157		2,725,408		1.70	%
		Warrants - 2.28% of Outstanding Equity(21)				3,380,282		827,409		673,018		0.42	%
						16,947,879		13,236,463		12,262,640		7.63	%

Subtotal Affiliated Investments						29,880,927	$	35,390,223	$	35,381,405		22.01	%

Controlled Investments:⁽⁷⁾

ECC Capital Corp.	Real Estate	Equity - 84,000,000 Units(13)(21)				84,000,000	$	4,257,002	$	6,636,000		4.13	%
		Senior Secured Promissory Note (SOFR + 5.00%, 0.00% Floor)(24)		12/31/2031		6,997,012		6,997,012		6,997,012		4.35	%
						90,997,012		11,254,014		13,633,012		8.48	%

FlexFIN, LLC	Services: Business	Equity Interest				37,180,761		37,180,761		37,180,761		23.13	%
						37,180,761		37,180,761		37,180,761		23.13	%

NSG Captive, Inc.	Insurance	Equity - 100,000 Units(9)(21)				100,000		49,255,076		48,469,540		30.15	%
						100,000		49,255,076		48,469,540		30.15	%

NVTN LLC	Hotel, Gaming & Leisure	Senior Secured Revolving Note (SOFR + 7.00%, 2.00% Floor)(23)		12/31/2026		8,900,000		9,029,539		8,900,000		5.54	%
		Senior Secured First Lien Term Loan B (AFR)(26)		12/31/2026		17,552,420		13,916,082		13,427,601		8.35	%
		Senior Secured First Lien Term Loan C (SOFR + 12.00% PIK, 2.00% Floor)(10)		12/31/2026		11,506,159		7,570,055		-		0.00	%
		Equity - 1,000 Class A Units(21)				1,000		21,450,924		-		0.00	%
						37,959,579		51,966,600		22,327,601		13.89	%

Subtotal Control Investments						166,237,352	$	149,656,451	$	121,610,914		75.65	%

	Total Investments, September 30, 2025					300,530,345	$	324,389,165	$	302,272,488		188.01	%

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Consolidated Schedule of Investments

As of September 30, 2025

⁽¹⁾	Substantially all of our investments are domiciled in the United States. Certain investments also have international operations.
⁽²⁾	Par amount is presented for debt investments and the amount includes accumulated payment-in-kind (“PIK”) interest, as applicable, and is net of repayments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted.
⁽³⁾	Net unrealized depreciation for U.S. federal income tax purposes totaled $(22,116,677).
	The tax cost basis of investments is $324,389,165 as of September 30, 2025.
	The amortized cost represents the original cost adjusted for the amortization or accretion of premium or discount, as applicable, on debt investments using the effective interest method.
⁽⁴⁾	Unless otherwise indicated, all securities are valued using significant unobservable inputs, which are categorized as Level 3 assets under the definition of ASC 820 fair value hierarchy (see Note 4).
⁽⁵⁾	Percentage is based on net assets of $160,774,300 as of September 30, 2025.
⁽⁶⁾	Affiliated Investments are defined by the 1940 Act as investments in companies in which the Company owns between 5% and 25% outstanding voting securities or is under common control with such portfolio company.
⁽⁷⁾	Control Investments are defined by the Investment Company Act of 1940, as amended (the “1940 Act”), as investments in companies in which the Company owns more than 25% of the voting securities or maintains greater than 50% of the board representation.
⁽⁸⁾	The investment has an unfunded commitment as of September 30, 2025 (see Note 8), and fair value includes the value of any unfunded commitments. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. The negative fair value, if applicable, is the result of the capitalized discount on the loan.
⁽⁹⁾	NSG Captive, Inc. owns 80% of National Security Group Holdings Inc.
⁽¹⁰⁾	The investment was on non-accrual status as of September 30, 2025.
⁽¹¹⁾	The investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act, in a whole, or in part. As of September 30, 2025, non-qualifying assets represented 14.70% of total assets.
⁽¹²⁾	This investment earns 0.50% commitment fee on all unused commitment as of September 30, 2025, and is recorded as a component of interest income on the Consolidated Statements of Operations.
⁽¹³⁾	This investment represents a Level 1 security in the ASC 820 table as of September 30, 2025 (see Note 4).
⁽¹⁴⁾	This investment represents a Level 2 security in the ASC 820 table as of September 30, 2025 (see Note 4).
⁽¹⁵⁾	The interest rate on this preferred equity is fixed-to-floating and shifted to 3 month SOFR plus a CSA of 0.262% plus a 4.743% spread on 9/30/2025.
⁽¹⁶⁾	The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 5.29% spread on 9/27/2027.
⁽¹⁷⁾	The investment is held through PhenixFIN Investment Holdings FST, LLC.
⁽¹⁸⁾	The interest rate on this preferred equity is fixed-to-floating and will shift to 3 month SOFR plus a CSA of 0.262% plus a 6.130% spread on 10/15/2026.
⁽¹⁹⁾	The interest rate on this preferred equity is fixed-to-floating and will shift to a rate equal to the five-year US Treasury Rate plus a 6.278% spread on 4/15/2028
⁽²⁰⁾	Credit Spread Adjustment (“CSA”).
⁽²¹⁾	Non-income producing security.
⁽²²⁾	The investment is valued using NAV as a practical expedient.
⁽²³⁾	The interest rate on these securities is subject to 1 month SOFR, which as of September 30, 2025 was 4.13%.
⁽²⁴⁾	The interest rate on these securities is subject to 3 month SOFR, which as of September 30, 2025 was 3.98%.
⁽²⁵⁾	The interest rate on these securities is subject to 6 month SOFR, which as of September 30, 2025 was 3.85%.
⁽²⁶⁾	The interest rate on these securities is subject to the monthly Applicable Federal Rate, which as of September 30, 2025 was 3.93%.
⁽²⁷⁾	The investment includes an exit fee that is receivable upon repayment of the loan. See Note 2 “Significant Accounting Policies.”
⁽²⁸⁾	The interest rate on this preferred equity is 7.875%.
⁽²⁹⁾	On November 1, 2025, the maturity date of this investment was extended to 11/1/2026.

The accompanying notes are an integral part of these consolidated financial statements.

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 1. Organization

PhenixFIN Corporation (“PhenixFIN,” the “Company,” “we” and “us”) is an internally-managed non-diversified closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). We completed our initial public offering (“IPO”) 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 (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Through December 31, 2020, we were an externally managed company. Since January 1, 2021, we have operated under our present internalized management structure.

The Company has formed and expects to continue to form certain taxable subsidiaries (the “Taxable Subsidiaries”), which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow us to, among other things, hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a RIC under the Code.

The Company’s investment objective is to generate current income and capital appreciation. The management team seeks to achieve this objective primarily through making loans, private equity or other investments in privately-held companies. The Company may also make debt, equity or other investments in publicly-traded companies. These investments may also include investments in other BDCs, closed-end funds or REITs. We may also pursue other strategic opportunities and invest in other assets or operate other businesses to achieve our investment objective, such as operating and managing an asset-based (gems) lending business and overseeing an insurance business. The portfolio generally consists of senior secured first lien term loans, senior secured second lien term loans, senior secured bonds, preferred equity and common equity. Occasionally, we will receive warrants or other equity participation features which we believe will have the potential to increase total investment returns. Our loan and other debt investments are primarily rated below investment grade or are unrated. Investments in below investment grade securities are considered predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due.

Since January 4, 2021, the common stock trades on the NASDAQ Global Market under the trading symbol “PFX.”

Note 2. Significant Accounting Policies

Basis of Presentation

The Company is an investment company following the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946 (“ASC 946”), Financial Services – Investment Companies. The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the consolidated accounts of the Company and its wholly owned subsidiaries PhenixFIN Small Business Fund, LP, PhenixFIN SLF Funding I LLC, PhenixFIN Investment Holdings, LLC, PhenixFIN Investment Holdings Omnivere, LLC, PhenixFIN Investment Holdings AAR, LLC, and PhenixFIN Investment Holdings Amvestar, LLC. All references made to the “Company,” “we,” and “us” herein include PhenixFIN Corporation and its consolidated subsidiaries, except as stated otherwise. Additionally, the accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Act of 1933. Therefore, this Form 10-Q should be read in conjunction with the Company’s annual report on Form 10-K for the year ended September 30, 2025. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending September 30, 2026.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 2. Significant Accounting Policies (continued)

Cash, Restricted Cash and Cash Equivalents

The Company considers cash equivalents to be highly liquid investments with original maturities of three months or less. Cash and cash equivalents include deposits in a money market account. The Company deposits its cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits. As of December 31, 2025 and September 30, 2025, we had $3.4 million and $7.3 million in cash and cash equivalents, respectively, none of which is restricted.

Debt Issuance Costs and Deferred Financing Costs

Debt issuance costs, incurred in connection with unsecured notes (see Note 5), are deferred and amortized over the life of the respective instrument. Deferred financing costs related to the issuance of revolving debt obligations (see Note 5) are deferred and amortized over the life of the respective obligation. Debt issuance costs related to any unsecured notes are presented net against the outstanding debt balance on the Consolidated Statements of Assets and Liabilities. Deferred financing costs related to any credit facilities are presented on the Consolidated Statements of Assets and Liabilities.

Indemnification

In the normal course of business, the Company enters into contractual agreements that provide general indemnifications against losses, costs, claims and liabilities arising from the performance of individual obligations under such agreements. The Company has had no material claims or payments pursuant to such agreements. The Company’s individual maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on management’s experience, the Company expects the risk of loss to be remote.

Revenue Recognition

Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discounts and premiums to par value on investments purchased are accreted and amortized into interest income over the life of the respective investment. Loan origination fees, exit fees, original issue discount (“OID”) and market discounts or premiums are capitalized and amortized into interest income using the effective interest method or straight-line method, as applicable.

The Company holds debt investments in its portfolio that contain a payment-in-kind (“PIK”) interest provision. PIK interest, which represents contractually deferred interest added to the investment balance that is generally due at maturity, is recorded on the accrual basis to the extent such amounts are expected to be collected. PIK interest is not accrued if the Company does not expect the issuer to be able to pay all principal and interest when due. For the three months ended December 31, 2025 and 2024, the Company earned approximately $0.2 million and $0.4 million in PIK interest, respectively.

Amendment and transaction break-up fees associated with investments in portfolio companies are recognized as income when we become entitled to such fees. Prepayment penalties received by the Company for debt instruments paid back to the Company prior to the maturity date are recorded as income upon repayment of debt. Administrative agent fees received by the Company are capitalized as deferred revenue and recorded as fee income when the services are rendered. Other income includes fees for providing managerial assistance to our portfolio companies and is recognized as revenue when earned. For the three months ended December 31, 2025 and 2024, fee income was approximately $187.8 thousand and approximately $11.1 thousand, respectively (see Note 9).

Investment transactions are accounted for on a trade date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of investment using the specific identification method, without regard to unrealized gains or losses previously recognized. No realized gains or losses relating to restructuring transactions occurred during the three months ended December 31, 2025 and 2024. The Company reports changes in fair value of investments as net unrealized appreciation/(depreciation) on investments in the Consolidated Statements of Operations.

Management reviews all loans that become 90 days or more past due on principal or interest or when there is reasonable doubt that principal or interest will be collected for possible placement on management’s designation of non-accrual status. Interest receivable is analyzed regularly and may be reserved against when deemed not collectible. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current, although we may make exceptions to this general rule if the loan has sufficient collateral value and is in the process of collection. At December 31, 2025, a certain investment in one portfolio company held by the Company was on non-accrual status with a fair value of approximately $0.0 million, or 0.0% of the fair value of our portfolio, and a cost of $7.6 million. At September 30, 2025, a certain investment in one portfolio company held by the Company was on non-accrual status with a combined fair value of approximately $0.0 million, or 0.0% of the fair value of our portfolio, and a cost of $7.6 million.

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 2. Significant Accounting Policies (continued)

Investment Classification

The Company classifies its investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, we would be deemed to “control” a portfolio company if we owned more than 25% of its outstanding voting securities and/or had the power to exercise control over the management or policies of such portfolio company. We refer to such investments in portfolio companies that we “control” as “Control Investments.” Under the 1940 Act, we would be deemed to be an “Affiliated Person” of a portfolio company if we own between 5% and 25% of the portfolio company’s outstanding voting securities or we are under common control with such portfolio company. We refer to such investments in Affiliated Persons as “Affiliated Investments.”

Valuation of Investments

The Company applies fair value accounting to all of its financial instruments in accordance with the 1940 Act and ASC Topic 820 - Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy as discussed in Note 4. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

Investments for which market quotations are readily available are valued at such market quotations, which are generally obtained from an independent pricing service or multiple broker-dealers or market makers. We weight the use of third-party broker quotations, if any, in determining fair value based on our understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer. However, debt investments with remaining maturities within 60 days that are not credit impaired are valued at cost plus accreted discount, or minus amortized premium, which approximates fair value. Investments for which market quotations are not readily available are valued at fair value as determined by our Chief Financial Officer, the Company’s Valuation Designee, based upon input from management and third-party valuation firms. Because these investments are illiquid and because there may not be any directly comparable companies whose financial instruments have observable market values, these loans are valued using a fundamental valuation methodology, consistent with traditional asset pricing standards, that is objective and consistently applied across all loans and through time.

Investments in investment funds are valued at fair value. Fair values are generally determined utilizing the NAV supplied by, or on behalf of, management of each investment fund, which is net of management and incentive fees or allocations charged by the investment fund and is in accordance with the “practical expedient”, as defined by FASB Accounting Standards Update (“ASU”) 2009-12, Investments in Certain Entities that Calculate Net Asset Value per Share. NAVs received by, or on behalf of, management of each investment fund are based on the fair value of the investment funds’ underlying investments in accordance with policies established by management of each investment fund, as described in each of their financial statements and offering memorandum. If the Company is in the process of the sale of an investment fund, fair value will be determined by actual or estimated sale proceeds.

The methodologies utilized by the Company in estimating the fair value of its investments categorized as Level 3 generally fall into the following two categories:

●

The “Market Approach” uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business.

●

The “Income Approach” converts future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. When the Income Approach is used, the fair value measurement reflects current market expectations about those future amounts.

The Company has engaged third-party valuation firms (the “Valuation Firms”) to assist it and its Valuation Designee (the Chief Financial Officer) in the valuation of its portfolio investments. The valuation reports generated by the Valuation Firms consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information, including comparable transactions, performance multiples, and movement in yields of debt instruments, among other factors. The Company uses a market yield analysis under the Income Approach or an enterprise model of valuation under the Market Approach, or a combination thereof. In applying the market yield analysis, the value of the Company’s loans are determined based upon inputs such as the coupon rate, current market yield, interest rate spreads of similar securities, the stated value of the loan, and the length to maturity. In applying the enterprise model, the Company uses a waterfall analysis, which takes into account the specific capital structure of the borrower and the related seniority of the instruments within the borrower’s capital structure. To estimate the enterprise value of the portfolio company, we weigh some or all of the traditional market valuation methods and factors based on the individual circumstances of the portfolio company in order to estimate the enterprise value.

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 2. Significant Accounting Policies (continued)

The methodologies and information that the Company utilizes when applying the Market Approach for performing investments include, among other things:

●

valuations of comparable public companies (“Guideline Comparable Approach”);

●

recent sales of private and public comparable companies (“Guideline Comparable Approach”);

●

recent acquisition prices of the company, debt securities or equity securities (“Recent Arms-Length Transaction”);

●

external valuations of the portfolio company, offers from third parties to buy the company (“Estimated Sales Proceeds Approach”);

●

subsequent sales made by the Company of its investments (“Expected Sales Proceeds Approach”); and

●

estimating the value to potential buyers.

The methodologies and information that the Company utilizes when applying the Income Approach for performing investments include:

	●	discounting the forecasted cash flows of the portfolio company or securities (Discounted Cash Flow (“DCF”) Approach); and

	●	Black-Scholes model or simulation models or a combination thereof (Income Approach - Option Model) with respect to the valuation of warrants.

For non-performing investments, we may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities using an expected recovery model (Market Approach - Expected Recovery Analysis or Estimated Liquidation Proceeds).

We undertake a multi-step valuation process each quarter when valuing investments for which market quotations are not readily available, as described below:

●

Our quarterly valuation process generally begins with each portfolio investment being initially valued by a Valuation Firm;

●

Available third-party market data will be reviewed by Company personnel designated by the Valuation Designee (“Fair Value Personnel”) and the Valuation Firm.

●

Available portfolio company data and general industry data are then reviewed by the Fair Value Personnel.

●

Preliminary valuation conclusions are then documented by the Valuation Firm and discussed with the Fair Value Personnel.

	●	The Valuation Designee then determines the fair value of each investment in the Company’s portfolio in good faith based on such discussions, the Company’s Valuation Policy and the Valuation Firms’ final estimated valuations.

	●	The Valuation Designee’s report is then presented to the Board of Directors and the Audit Committee.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. In addition, changes in the market environment (including the impact of pandemics, wars, tariffs, or other events on financial markets), portfolio company performance, and other events may occur over the lives of the investments that may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned.

Fair Value of Financial Instruments

The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to their short-term nature. The carrying amounts and fair values of our long-term obligations are discussed in Note 5.

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 2. Significant Accounting Policies (continued)

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the FASB. ASUs not listed were assessed by the Company and either determined to be not applicable or expected to have minimal impact on its Consolidated Financial Statements.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”),” which enhances disclosure requirements about significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all of the disclosures as required by Topic 280, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for the fiscal years beginning after September 30, 2024, and interim periods beginning after September 30, 2025 for the Company. Early adoption is permitted and retrospective adoption is required for all prior periods presented. The Company adopted the guidance during the year ended September 30, 2025 and its adoption did not have a material impact on the Company’s financial statements. See “Note 15 – Segment Reporting” for more information.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”),” which intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact to its Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (“ASU 2024-03”)”, which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion for oil and gas companies, within relevant income statement captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, as clarified by ASU 2025-01, which was released by the FASB in January 2025. Early adoption and retrospective application is permitted. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact on its consolidated financial statements.

Other than the aforementioned guidance, the Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying Consolidated Financial Statements.

Federal Income Taxes

The Company has elected, and intends to continue to qualify annually, to be treated as a RIC under Subchapter M of the Code. In order to continue to qualify as a RIC and be eligible for tax treatment under Subchapter M of the Code, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its stockholders at least 90% of the sum of investment company taxable income (“ICTI”), as defined by the Code, including PIK interest, and net tax exempt interest income (which is the excess of gross tax exempt interest income over certain disallowed deductions) for each taxable year. Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward ICTI in excess of current year dividend distributions into the next tax year. Any such carryover ICTI must be distributed before the end of that next tax year through a dividend declared prior to filing the final tax return related to the year which generated such ICTI.

The Company is subject to a nondeductible U.S. federal excise tax of 4% on undistributed income if it does not distribute at least 98% of its ordinary income in any calendar year and 98.2% of its capital gain net income for each one-year period ending on October 31 of such calendar year and any income realized, but not distributed, in preceding years and on which it did not pay federal income tax. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions for excise tax purposes, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. There was no provision for federal excise tax at December 31, 2025 and September 30, 2025. On December 13, 2024, the Company identified that it did not distribute at least 90% of its investment company taxable income for the tax year ended September 30, 2023. The Company filed Form 8927 on December 16, 2024 notifying the IRS.

The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the unrealized gains generated by the investments held by the Taxable Subsidiaries. As of December 31, 2025 and September 30, 2025, the Company recorded a net deferred tax asset of $852,570 and $1,234,847 respectively, on the Consolidated Statements of Assets and Liabilities. The change in provision for deferred taxes is included as a component of net realized and unrealized gain/(loss) on the Consolidated Statements of Operations. For the three months ended December 31, 2025 and 2024, the Company recorded a change in provision for deferred taxes of $(423,429) and $0, respectively, on the unrealized (appreciation)/depreciation on investments.

As of December 31, 2025 and September 30, 2025, the Company had a deferred tax asset of $13.8 million and $14.4 million, respectively, consisting primarily of net operating losses and net unrealized losses on the investments held within its Taxable Subsidiaries. As of December 31, 2025 and September 30, 2025, the Company has booked a valuation allowance of $12.9 million and $13.2 million, respectively, against its deferred tax asset.

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 2. Significant Accounting Policies (continued)

ICTI generally differs from net investment income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. The Company may be required to recognize ICTI in certain circumstances in which it does not receive cash. For example, if the Company holds debt obligations that are treated under applicable tax rules as having original issue discount, the Company must include in ICTI each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by the Company in the same taxable year. The Company may also have to include in ICTI other amounts that it has not yet received in cash, such as 1) PIK interest income and 2) interest income from investments that have been classified as non-accrual for financial reporting purposes. Interest income on non-accrual investments is not recognized for financial reporting purposes, but generally is recognized in ICTI. Because any original issue discount or other amounts accrued will be included in the Company’s ICTI for the year of accrual, the Company may be required to make a distribution to its stockholders in order to satisfy the minimum distribution requirements, even though the Company will not have received and may not ever receive any corresponding cash amount. ICTI also excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes (“ASC 740”). ASC 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Consolidated Statements of Operations. There were no material uncertain income tax positions at December 31, 2025. Although we file federal and state tax returns, our major tax jurisdiction is federal. The Company’s federal and state tax returns for the prior four fiscal years remain open, subject to examination by the Internal Revenue Service and applicable state tax authorities.

Company Investment Risk, Concentration of Credit Risk, and Liquidity Risk

The Company has broad discretion in making investments. Its debt or equity investments may be affected by business, financial market or legal uncertainties. Prices of investments may be volatile, and a variety of factors that are inherently difficult to predict, such as domestic or international economic and political developments, may significantly affect the results of the Company’s activities and the value of its investments. In addition, the value of the Company’s portfolio may fluctuate as the general level of interest rates fluctuate.

The value of the Company’s investments in loans may be detrimentally affected to the extent, among other things, that a borrower defaults on its obligations, there is insufficient collateral and/or there are extensive legal and other costs incurred in collecting on a defaulted loan, observable secondary or primary market yields for similar instruments issued by comparable companies increase materially or risk premiums required in the market between smaller companies, such as our borrowers, and those for which market yields are observable increase materially.

The Company’s assets may, at any time, include securities and other financial instruments or obligations that are illiquid or thinly traded, making purchase or sale of such securities and financial instruments at desired prices or in desired quantities difficult. Furthermore, the sale of any such investments may be possible only at substantial discounts, and it may be extremely difficult to value any such investments accurately.

Note 3. Investments

The composition of our investments as of December 31, 2025 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):

	Amortized Cost		Percentage			Fair Value		Percentage
Senior Secured First Lien Term Loans	$	126,472		38.9	%	$	112,356		37.9	%
Senior Secured Notes		13,363		4.1			13,493		4.6
Fund Investment		2,194		0.7			2,227		0.8
Equity/Warrants		182,882		56.3			167,564		56.7
Total Investments	$	324,911		100.0	%	$	295,640		100.0	%

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 3. Investments (continued)

The composition of our investments as of September 30, 2025 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):

	Amortized Cost		Percentage			Fair Value		Percentage
Senior Secured First Lien Term Loans	$	125,373		38.6	%	$	116,567		38.6	%
Senior Secured Notes		17,039		5.3			17,457		5.8
Fund Investment		2,194		0.7			2,227		0.7
Equity/Warrants		179,783		55.4			166,021		54.9
Total Investments	$	324,389		100.0	%	$	302,272		100.0	%

In connection with certain of the Company’s investments, the Company receives warrants that are obtained for the objective of increasing the total investment returns and are not held for hedging purposes. At December 31, 2025 and September 30, 2025, the total fair value of warrants was $585.9 thousand and $815.5 thousand, respectively, and were included in investments at fair value on the Consolidated Statements of Assets and Liabilities. During the three months ended December 31, 2025 and 2024, the Company did not acquire any additional warrants in any portfolio companies.

Total change in unrealized appreciation/(depreciation) related to warrants for the three months ended December 31, 2025 and 2024 was $(229.6) thousand and $265.0 thousand, respectively, and was recorded on the Consolidated Statements of Operations as net change in unrealized appreciation/(depreciation) on investments. The warrants are received in connection with individual investments and are not subject to master netting arrangements.

The following table shows the portfolio composition by industry grouping at fair value at December 31, 2025 (dollars in thousands):

	Fair Value		Percentage

Services: Business	$	48,941		16.6	%
Insurance		48,325		16.2
Real Estate		46,933		15.9
Services: Consumer		34,340		11.6
Construction & Building		30,120		10.2
Aerospace & Defense		27,445		9.3
Hotel, Gaming & Leisure		18,314		6.2
High Tech Industries		17,709		6.0
Automotive		8,033		2.7
Metals & Mining		6,763		2.3
Consumer Discretionary		4,480		1.5
Banking		2,227		0.8
Media: Broadcasting & Subscription		2,010		0.7
Total	$	295,640		100.0	%

PHENIXFIN CORPORATION

Notes to Consolidated Financial Statements

As of December 31, 2025

(Unaudited)

Note 3. Investments (continued)

The following table shows the portfolio composition by industry grouping at fair value at September 30, 2025 (dollars in thousands):

	Fair Value		Percentage

Services: Business	$	56,249		18.6	%
Insurance		48,470		16.0
Real Estate		47,632		15.8
Services: Consumer		38,418		12.7
Aerospace & Defense		25,881		8.6
Hotel, Gaming & Leisure		22,328		7.4
Construction & Building		18,131		6.0
High Tech Industries		16,961		5.6
Metals & Mining		8,763		2.9
Automotive		7,860		2.6
Media: Broadcasting & Subscription		4,850		1.6
Consumer Discretionary		4,502		1.5
Banking		2,227		0.7
Total	$	302,272		100.0	%

The Company invests in portfolio companies principally located in the United States. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business.

The following table shows the portfolio composition by geographic location at fair value at December 31, 2025 (dollars in thousands):

	Fair Value			Percentage
Northeast	$	116,453			39.4	%
Southeast		98,240			33.2
West		35,389			12.0
Midwest		17,377			5.9
Southwest		15,674			5.3
Mid-Atlantic		314			0.1
International		12,193	&nbs

PhenixFIN Corp 10-Q