Press Release

PhenixFIN Corporation Announces Fiscal Second Quarter 2023 Financial Results

NEW YORK, May 11, 2023 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal second quarter of 2023.

Highlights

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.

ABOUT PHENIXFIN CORPORATION

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

SAFE HARBOR STATEMENT AND OTHER DISCLOSURES

This press release contains “forward-looking” statements. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including among other things, PhenixFIN’s ability to deliver value to shareholders, 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.

PHENIXFIN CORPORATION
Consolidated Statements of Assets and Liabilities

	March 31, 2023 (Unaudited)			September 30, 2022
Assets:
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
Receivables:
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

Liabilities:
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

PHENIXFIN CORPORATION
Consolidated Statements of Operations
(Unaudited)

	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

Expenses:
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

PhenixFIN Corporation