Company: PNNT
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001193125-25-293703
Chunk: 33

Company: PENNANTPARK INVESTMENT CORP
Filing Date: 2025-11-24
Form: 10-K
Item: Item 1C
Chunk 33
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 Taxable Subsidiary. The state and local tax liability of zero as of September 30, 2025 is included under accrued other expenses in the consolidated statement of assets and liabilities. The Taxable Subsidiary, which is subject to tax as a corporation, allows us to hold equity securities of certain portfolio companies treated as pass-through entities for U.S. federal income tax purposes while facilitating our ability to qualify as a RIC under the Code. RESULTS OF OPERATIONSSet forth below are the results of operations for the years ended September 30, 2025 and 2024. For information regarding results of operations for the year ended September 30, 2023, see the Company's Form 10-K for the fiscal year ended September 30, 2024, as filed with the SEC on November 25, 2024. Investment IncomeInvestment income for the year ended September 30, 2025 was $122.4 million and was attributable to $89.9 million from first lien secured debt, $3.8 million from second lien secured debt and $4.4 million from subordinated debt and $24.3 from other investments. The decrease in investment income compared to prior year was  primarily due to a decrease in our total portfolio including a decrease in our weighted average yield on debt investment and a decrease in dividend income.Investment income for the year ended September 30, 2024 was $143.8 million and was attributable to $104.8 million from first lien secured debt, $9.8 million from second lien secured debt and $3.0 million from subordinated debt and $26.2 million from other investments.ExpensesNet expenses for the year ended September 30, 2025 totaled $76.3 million. Base management fee for the same period totaled $16.2 million, incentive fee totaled $9.8 million, debt related interest and other financing expenses totaled $41.6 million and general and administrative expenses totaled $6.1 million and provision for taxes and totaled $2.6 million.  The decrease in expenses over the prior year was primarily due to decrease in interest and expenses on debt and a decrease in incentive fees.Net expenses for the year ended September 30, 2024 totaled $83.7 million. Base management fee for the same period totaled $16.7 million, incentive fee totaled $12.7  million, debt related interest and other financing expenses totaled $45.2 million and general and administrative expenses totaled