Advanced Flower Capital : AFC Q1 2026 Earnings Presentation

Published: 2026-05-07 07:38:37 ET AFCG

Published on 05/07/2026 at 07:38 am EDT

Investor Presentation

First Quarter 2026

Important Notices

This presentation is by Advanced Flower Capital, a publicly traded company that is a non-diversified, externally managed, closed-end management investment company that has elected to be regulated as a BDC and intends to elect to be taxed as a regulated investment company ("RIC") for federal income tax purposes for the year ending December 31, 2026. During the year ended December 31, 2025, the Company elected to be taxed as a REIT for federal income tax purposes. This presentation is provided for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy, any security or instrument. AFC is not a registered investment adviser. AFC is managed by AFC Management, LLC ("AFCM" or our "Adviser"), a registered investment adviser. This presentation is not a communication by AFCM and is not designed to maintain any existing AFCM client or investor or solicit new AFCM clients or investors. We routinely post important information for investors on our website, https://www.advancedflowercapital.com. We intend to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC encourages investors, analysts, the media and others interested in AFC to monitor the "Investor Relations" section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations, webcasts and other information we post from time to time on our website. To sign-up for email-notifications, please visit the "Email Alerts" section of our website under the "Investor Relations" section and enter the required information to enable notifications. Past performance is no guarantee of future results. There is no guarantee that any investment strategy referenced herein will work under all market conditions. You alone assume the responsibility of evaluating the merits and risks associated with any potential investment or investment strategy referenced herein. The information contained herein is not intended to provide, and should not be relied upon for accounting, legal or tax advice or investment recommendations for AFC or any of its affiliates. Certain information contained in the presentation discusses general market activity, industry trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.

Current

Commitments

Principal Balance

Outstanding

Active

Pipeline2

Deals Sourced

Since Inception3

Total Commitments

Since Inception4

Deal Selectivity

Since Inception5

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses; Financial and company data as of 5/1/2026 unless otherwise specified.

Collective deal experience includes transactions executed prior to the Conversion at AFC and prior firms.

Includes potential syndications; AFC is in various stages of negotiation and has not completed its due diligence process with respect to these projects. As a result, there can be no assurance that we will move forward with any of these potential investments.

Represents all deals from 1/1/2020 through 5/1/2026 sourced by AFC's adviser.

Includes amounts committed by affiliated predecessor entities to AFC. 4

Represents the total deal count closed since inception divided by the total count of all deals sourced by AFC's adviser from 1/1/2020 through 5/1/2026.

Chairman

Chief Executive Officer

Chief Investment Officer, President

Chief Financial Officer, Treasurer

Chief Legal Officer

Chief Marketing Officer

30+ YEARS EXPERIENCE

15+ YEARS EXPERIENCE

12+ YEARS EXPERIENCE

30+ YEARS EXPERIENCE

Founded TCG, an alternative asset management platform focused on real estate and strategic private credit investing

Founder and CEO of

$5 billion AUM Fifth Street prior to its 2017 sale to Oaktree

Former CFO of Ascend Wellness Holdings, responsible for accounting, finance, M&A activity and deal structuring

5+ years as Head of Investor Relations for three Fifth Street public entities

7+ years focused on mergers and acquisitions and leveraged loans at CIT Group

Former VP of Finance for El-AD National Properties, LLC

Former Manager in REIT audit practice at PwC

Former Corporate & Securities Counsel at AmLaw 100 law firms and Lead Corporate Counsel at a unicorn technology startup

Advised public and private companies in securities offerings and M&A

Former Chief Marketing Officer at Fifth Street Asset Management

Former Global Head of Brand & Strategic Communications at Alliance Bernstein

Cycle-Tested Management

Seeking Compelling Investment Returns

Disciplined Process

Active Portfolio Management

Strong Balance Sheet & Liquidity

› AFC's ability to

›

Working to capture

›

Rigorous, repeatable

›

Detailed performance

›

Prudent cash

navigate fast-

the benefits from

and auditable

monitoring, stringent

management for

moving markets and

direct originations,

investment review

reporting cadence,

ample liquidity,

underwrite complex

with the potential to

process applying both

robust valuation

meaningful asset

credits draws from

earn premium yields

an experienced

procedures, and

coverage across

a deep well of

through selective

lender's process and

multiple early-

diversified

lending, asset

sourcing, disciplined

an operator's lens to

warning systems in

investments, and

management and

underwriting and

underwrite and

place, all supported

prudent leverage

operational

innovative structuring

structure loans

by a culture of credit

optimized to BDC-

experience

discipline

appropriate levels

What is a Business Development Company?

A closed-end management investment company that has elected to be regulated under the 1940 Act required to invest at least 70% of assets in private or small public companies via long-term debt or equity capital

What are the requirements?

Invest at least 70%

of assets in eligible

U.S. companies

Ordinarily invest

via long-term debt or equity capital

Maintain total

asset coverage of at least 150%

Report on

Forms 10-K, 10-Q and 8-K

Restrict

affiliated transactions

What are the potential benefits of a BDC structure for AFC?

Enables Investments Outside Cannabis

Increases Flexibility in Loan Structuring

Optimizes Access to Efficient Capital

Diversifies Exposures

Expands Opportunity Set Within Cannabis

As a BDC, AFC can

BDCs can offer deal

The BDC structure

With a broader mandate,

As a BDC, AFC will seek

originate direct loans to

structures better tailored

provides AFC capacity

AFC can deploy across

to issue loans to both

public and private

to borrower needs, such

to increase leverage as

industries, loan types

operators lacking RE as

middle market

as convertible debt,

it constructs a portfolio

and borrower profiles,

well as high-growth

companies outside of

unsecured loans,

of direct loans to the

improving loan selectivity

plant-touching and

cannabis, a sector

revenue-linked loans, or

U.S. lower middle

while potentially reducing

ancillary businesses (e.g.

facing unique challenges

equipment financing

markets

risks in the portfolio

brands, software)

Target Characteristics

Investment Focus

Origination Focus

LOAN TYPE

First lien and unitranche debt

Co-investments with affiliate investment vehicles

TERMS

Cash interest

Floating with SOFR floors OID and prepayment fees

CHECK SIZE At least $10 million

Credit Characteristics We Seek to Target

› Focus on originated loans as opposed to broadly syndicated financings

› Typically the sole lender in the tranches in which we invest:

Open to partnering with a small number of lenders in "club" deals

› Private companies headquartered or mostly operating in the United States

› Generating EBITDA of $5 to $50 million

› Diverse industry sectors

› Financing is often used for expansion capital, acquisitions, refinancings and recapitalizations

› Targeting investments in both sponsored (i.e., PE-backed) and direct lending opportunities

Credit Characteristics We Seek to Avoid

✔ Market leader with pronounced competitive advantages

✔ Proven management team with highly aligned incentives

✔ Variable cost structures designed to meet evolving markets

✔ Appropriate capital structure with low debt multiples

✔ Conservative leverage and interest coverage ratios

Cyclical end markets exposed to macro or geopolitical factors

Sectors with poor credit standards from an oversupply of debt

Highly concentrated customer base

Volatile or lumpy cash flows

Undifferentiated products or services with low profit margins

Note: Past performance does not predict future returns. These examples may not be representative of all investments of a given type or of investments generally, both with respect to operating metrics and performance, and it should not be assumed that the Company will make comparable or equally successful investments in the future.

Figures are presented for illustrative purposes. Reflects AFC Management, LLC's and/or the Company's views and beliefs as of the date appearing on this material only, subject to change.

Non-Sponsor-Backed Lending

Financing the businesses of issuers under any ownership

Owner-Operator Alignment

Leadership is often closely tied to the long-term health of the business and customer relationships

Operational Continuity

Often long-tenured teams with stable operations, strong industry networks and an institutionalized knowledge base

Structural Simplicity & Transparency

Often clean organizational structures and limited deal-driven complexities support clarity in underwriting

Conservative Balance-Sheet Mindset

Frequently a preference for prudent leverage, disciplined cost control and steady cash-flow management

Long-Term Partnership Focus

Financing decisions are often collaborative and tailored, strengthening long-term lender-borrower alignment

Typical Attributes

Institutional Governance & Reporting

Sponsors typically require regular reporting, clear KPIs and straightforward lender access to performance data

Standardized Operating Processes

Sponsors typically have organized diligence files, established operating systems and defined documentation processes

Strategic Support & Resources

Sponsors often bring playbooks, talent networks, and resources to support growth initiatives

Proactive Portfolio Management

Sponsors typically conduct active monitoring and make timely decisions when performance or conditions shift

Multiple Levers in Downside Scenario

Sponsors typically have options to support the business -equity infusions, operational changes, strategic alternatives

Sponsor-Backed Lending

Financing the businesses of issuers owned by PE

Sources: PennantPark, Sponsor Vs. Non-Sponsor Backed Lending, What You Need to Know, March 2024. The Alts Institute, Understanding Private Credit: Sponsored vs. Non-

Sponsored Financing, April 2025. Invesco, Direct Lending's Evolution: A look into sponsored versus non-sponsored, 8/12/2025. PGIM, Enhancing Diversification Through Non- 9

Sponsored Direct Lending, February 2025.

AFC is involved in each phase of the lending process, aiming to source loans with high return potential and downside protection

Sourcing & Originations

Multi-channel direct originations sourcing from: o Strong relationships with

sponsors, intermediaries, co-lenders & industry executives

o Internal direct sourcing led by senior team members, with systematic CRM tracking

Leading deals allows for stronger controls and greater influence over outcomes

Deal volume enables high selectivity for quality loans

Advance detailed term sheet

Primary due diligence on company and transaction:

Collateral

Credit metrics

Management team

Business plan

Company financial strength

Regulatory considerations

Third party diligence via advisors and experts

Final Investment Committee memo documents the analysis

Investment Committee

Investment Committee ("IC") oversees the entire investment process, driving continuous testing of theses and risks

Scrutinize lender protections, cash flow timing, covenants, inter-creditor agreements

Each loan must be approved by the Investment Committee

Management and the investment team have collectively structured over

$10 billion in transactions1

Portfolio Management

Monthly meeting to review all portfolio positions:

Covenant compliance

Board observation rights

Current performance v. budget

Onsite inspections

Internal ratings

Proactive dialogue with management, agent, sponsor, and industry relationships

Quarterly portfolio valuations and covenant reviews

SOURCE EVALUATE CLOSE MONITOR

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at

achieving the Company's objectives or preventing substantial investment losses. 10

Collective deal experience includes transactions executed prior to the Conversion at AFC and prior firms.

Multiple Channels Driving Originations High-Quality, Actionable Pipeline

NETWORK-BASED DEAL FLOW

› Co-lenders

› Owners/operators

› Brokers

› PE firms

› BDCs or REITs

Deals Sourced Since Inception1

Closed Deals Since Inception2

Current Commitments

Active Pipeline3

Principal Balance Outstanding

Deal

Selectivity4

› Banks

› Advisory firms

› Service providers

INTERNAL SOURCING

› Internal direct origination efforts provide a unique and proprietary flow of deals

› Pair in-house & 3rd party data for wide visibility on opportunity set in real-time

AFFILIATED STRATEGIES

› Opportunities to be allocated from investments originated by affiliate entities

Powerful Deal Flow Engine

FLEXIBLE PARTNERSHIP

Driving repeat business with solutions-oriented flexibility and good-faith negotiations

EXTENSIVE NETWORK

Vast ecosystem of longstanding industry contacts in each target vertical

MARKET PRESENCE

Maintain reputation as a reliable, skillful lender to the lower middle-market

QUALITY INBOUNDS

Reflecting the team's product & market knowledge and diverse specializations

Represents deals sourced by AFC's adviser from 1/1/2020 through 5/1/2026.

Includes amounts committed by affiliated predecessor entities to AFC.

Represents the total deal count closed since inception divided by the total count of all deals sourced by AFC's adviser from 1/1/2020 through 5/1/2026.

Investment Activity

Current Commitments 1

In $ millions

$350

$361

$375

$370

$345

$376

$381

$20

$10

$12

$333

$14

$10

$330

$351

$366

$360

$333

$323

$362

$378

Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 5/1/2026

Funded Unfunded

1. Represents total committed principal at closing for outstanding loans as of specified dates (9/30/2024, 12/31/2024, 3/31/2025, 6/30/2025, 9/30/2025, 12/31/2025, 12

3/31/2026, and 5/1/2026). Excludes early prepayments. Includes amounts committed by affiliated predecessor entities to AFC.

AFC's adviser has reviewed 1,161 deals, representing approximately $31 billion in aggregate value*

Deals Rejected*

Current Deals in Review

Current Deals Funded

As of 5/1/2026; In $ millions unless otherwise noted

Loan Name

Funding Date1

Loan Maturity

AFC Loan Commitment

As % of Total

Total OID2

Principal Balance

Cash Interest Rate3

Paid In-Kind ("PIK")2

Fixed/ Floating

YTM2

Cannabis:

Devi Holdings Inc.

May-20

May-24

$31.9

8.4%

7.7%

$40.6

13.0%

2.6%

Fixed

MI Opportunity Fund I, LLC

Dec-25

Dec-28

6.0

1.6%

5.7

10.0%

N/A

Fixed

23%

Trulieve Cannabis Corp.

Dec-25

Dec-30

5.0

1.3%

5.0

10.5%

N/A

Fixed

11%

Justice Cannabis Company

Apr-21

May-26

73.1

19.2%

4.0%

78.8

12.5%

N/A

Fixed

DMA Holdings (MA), LLC

Apr-22

May-27

13.2

3.5%

4.0%

12.2

15.6%

2.0%

Floating

Story of Natures Medicine LLC

Jul-23

Jul-26

30.0

7.9%

16.0%

21.6

15.0%

N/A

Fixed

18%

High End Holdings LLC

Mar-24

Dec-27

19.3

5.1%

4.0%

19.3

12.5%

N/A

Floating

16%

High End Holdings LLC

Mar-24

Dec-27

17.2

4.5%

4.0%

17.2

12.5%

N/A

Floating

16%

Theratrue, Inc.

Aug-24

Sep-28

11.0

2.9%

3.0%

8.0

13.8%

N/A

Floating

19%

Story of Maryland LLC

Oct-24

Nov-27

41.0

10.8%

2.0%

30.9

12.0%

N/A

Floating

15%

Story of Ohio LLC

Feb-25

Mar-28

15.0

3.9%

2.5%

14.6

14.0%

N/A

Fixed

17%

Standard Wellness Company, LLC

Apr-25

Apr-29

13.2

3.5%

3.0%

13.2

12.5%

1.5%

Fixed

17%

Cresco Labs, LLC

Aug-25

Aug-30

10.0

2.6%

4.0%

10.0

12.5%

N/A

Fixed

15%

Insurance:

BCIS AH Borrower LLC

Feb-26

Feb-30

29.7

7.8%

2.5%

29.7

7.5%

9.0%

Fixed

19%

Commercial & Professional Services:

STAT Buyer, LLC

Jan-26

Feb-31

60.0

15.8%

2.0%

58.2

12.1%

N/A

Floating

14%

Leisure Products:

Kristoff Buyer, LLC

Apr-26

Apr-31

2.5

0.7%

2.0%

2.5

9.4%

Floating

10%

Kristoff Parent, LLC

Apr-26

Oct-31

2.5

0.7%

2.3%

2.5

15.0%

Fixed

15%

Total Portfolio 4

$380.7

100%

4.3%

$370.0

12.2%

1.2%

* Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving AFC's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. Represents deals from 1/1/2020 through 5/1/2026 sourced by AFC's adviser.

Loans originated prior to 7/31/2020 were purchased from affiliated entities at fair value, approximating accreted or amortized cost plus accrued interest on 7/31/2020 and excluding prepayments.

See appendix section entitled "Definitions" for management description and calculation of yield to maturity ("YTM") and Original Issue Discount ("OID"). 13

Future Cash Interest Rate on loans with floating rates are based on its 5/1/2026 benchmark rate.

Portfolio Totals for Cash Interest Rate, Original Issue Discount and Paid In-Kind are calculated as a weighted average rate by principal balance outstanding.

N A S D A Q : A F C G | F IR S T Q U A R T E R 2 0 2 6

S IN C E L A S T Q U A R T E R

NET ASSET VALUE

Net asset value (NAV) as of March 31, 2026, was $7.90 per share as compared to

$7.46 as of December 31, 2025

NET INVESTMENT INCOME

Net investment income for the quarter ended March 31, 2026, was $0.21 per weighted average share

DIVIDEND

The Board of Directors approved a first quarter 2026 dividend of $0.05 per share1

Total loan commitments originated during the first quarter were $89.7 million

ORIGINATIONS

LEVERAGE

As of March 31, 2026, AFC's net-debt-to-equity ratio was 0.48x

LOAN REPAYMENTS

During the first quarter, AFC received $41.8 million in repayments and $1.8 million in exit and prepayment fees

1. The first quarter dividend was paid on April 15, 2026, to shareholders of record as of March 31, 2026. 15

(Dollar amounts in thousands except per-share data)

Q1 2026

Balance Sheet Highlights:

Total Debt Outstanding (Principal)

$203,000

Total Net Assets (Equity)

$185,819

Cash and Cash Equivalents

$112,731

Net Debt-to-Equity Ratio

0.48x

Income Statement Highlights:

Total Investment Income

$9,813

Net Investment Income

$4,826

Net Unrealized Appreciation

$7,118

Net Increase in Net Assets Resulting From Operations

$11,427

Per-Share Data:

Net Asset Value

$7.90

Net Investment Income

$0.21

Net Increase in Net Assets Resulting From Operations

$0.49

Distribution Declared

$0.05

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. Source: Company filings. Please see our Securities

and Exchange Commission filings for further information. 16

$7.46

$0.21

$0.28 ($0.05)

$7.90

12/31/2025

NAV Per Share

Net Investment Income

Net Unrealized Gains on Investments

Distributions Declared

3/31/2026

NAV Per Share

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at

achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. Per share data was derived using weighted average 17

shares outstanding for the quarter, except for NAV per share which is based on shares outstanding at each quarter end, and total distributions

(At quarter end; dollar amounts in millions)

Q4 2025

Q1 2026

5/1/2026

Key Metrics:

Portfolio Loan Commitments

$332,631

$375,661

$380,661

Number of Portfolio Companies

Average Investment Size

$22,175

$25,044

$22,392

First-Lien Debt Investments

100%

Interest Rate Type:

Asset Class:

% of Debt Investments Floating Rate1

38%

41%

40%

% of Debt Investments Fixed Rate

62%

59%

60%

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. Source: Company filings. Please see our Securities and Exchange Commission filings for further information.

1. As of May 1, 2026, we had seven floating-rate loans, representing approximately 40% of our portfolio based on aggregate outstanding principal balances.

As of March 31, 2026, non-accrual investments as a percentage of the total fair value of the portfolio was 23.5%1

Internal

March 31, 2026

Rating

Fair Value

As % of Portfolio

Number of Companies

78.1

28.0%

135.4

48.5%

65.8

23.5%

Total

$279.2

100.0%

Rating

1 Very Low Risk - The portfolio investment exceeds performance metrics included in original underwriting expectations.

2 Low Risk - The portfolio investment is performing consistent with expectations. Trends and risk factors are neutral to favorable.

Medium Risk - The portfolio investment is performing as expected at the time of underwriting, but requires closer monitoring due to industry or

borrower trends and risk factors.

4 High Risk/ Potential for Loss - The portfolio investment is operating below our underwriting expectations and requires closer monitoring. Trends and risk factors are negative. Returns on our investment may soon be impaired, absent material improvement. Risk of recovery of interest exists.

5 Impaired/ Loss Likely - The portfolio investment is underperforming with expected loss of interest, and full recovery of principal is uncertain.

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at

achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. 19

As of March 31, 2026, the percentage of debt investments on non-accrual at amortized cost as a percentage of the total portfolio was 36.6%.

(Dollar amounts in millions) Issue Date

Commitment

Principal 1

Interest Rate

Maturity Date

Interest Due Dates

2027 Senior Notes2

Nov-21

$77.0

5.75% Coupon

May-27

May 1 and November 1

Revolving Credit Facility3

Apr-22

$80.0

$18.0

7.25%

Apr-28

Payable monthly

TCGSL Credit Facility

Jan-26

$20.0

8.50%

Aug-28

Payable monthly

Total

$177.0

$95.0

Amounts for the Revolving Credit Facility and TCGSL Credit Facility represent loan principal outstanding following April 1st repayments of $88.0mm and $20.0mm, respectively.

2027 Senior Notes issued November 2021, $100.0mm aggregate principal, 5.75% fixed coupon, due May 2027. Outstanding principal of $77.0mm reflects partial repurchases.

Borrowings under the Revolving Credit Facility are subject to borrowing base and other restrictions. Following the temporary increase period, the commitment was $80.0mm on April 10, 2026

As of March 31, 2026

(Unaudited)

Assets

Non-controlled, non-affiliated investments at fair value (cost of $345,918,978)

279,237,624

Cash and cash equivalents

112,730,935

Interest receivable

1,290,660

Prepaid expenses and other assets

1,617,704

Total assets

394,876,923

Liabilities

Accrued interest

2,065,620

Distribution payable

1,176,442

Management fee payable

739,247

Income based incentive fee payable

1,023,725

Accrued direct administrative expenses

717,039

Director fees payable

63,750

Accounts payable and other liabilities

823,992

Senior notes payable, net

76,448,216

Line of credit payable

106,000,000

Line of credit payable to affiliate

20,000,000

Total liabilities

209,058,031

Commitments and contingencies (Note 8)

Net assets

Common stock, par value $0.01 per share, 50,000,000 shares authorized; 23,528,844 shares issued and outstanding at

March 31, 2026

235,288

Additional paid-in capital

258,694,609

Distributable (loss) earnings

(73,111,005)

Total net assets

185,818,892

Total liabilities and net assets

394,876,923

Net asset value per share

7.90

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at

achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. Source: Company filings. Please see our Securities 21

and Exchange Commission filings for further information.

Three Months Ended

(Unaudited)

March 31, 2026

Investment income:

From non-controlled/non-affiliated investments:

Interest income

7,670,790

Payment-in-kind interest income

332,640

Other income

1,809,788

Total investment income

9,813,218

Expenses:

Interest expense

1,726,540

Management fee

973,235

Incentive fee on net investment income

1,023,725

General and administrative expenses

860,496

Director fees

63,800

Professional fees

463,911

Total expenses

5,111,707

Management fee rebate

(233,988)

Net expenses

4,877,719

Net investment income before taxes

4,935,499

Income tax expense

109,368

Net investment income

4,826,131

Net change in unrealized appreciation on investments

7,118,443

Provision for taxes on unrealized appreciation on investments

517,227

Net unrealized gain on investments, net of taxes

6,601,216

Net increase in net assets resulting from operations

11,427,347

Per share data:

Basic and diluted net investment income per share

$ 0.21

Basic and diluted net increase in net assets resulting from operations per share

$ 0.49

Basic and diluted weighted average shares of common stock outstanding

23,528,844

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at

achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. Source: Company filings. Please see our Securities 22

and Exchange Commission filings for further information.

Three Months Ended

(Unaudited)

March 31, 2026

Increase in net assets resulting from operations:

Net investment income

4,826,131

Net change in unrealized appreciation on investments

6,601,216

Net increase in net assets resulting from operations

11,427,347

Distributions to shareholders:

Distributions declared ($0.05 per share)

(1,176,442)

Net decrease in net assets resulting from distributions

(1,176,442)

Total increase in net assets

10,250,905

Net assets, beginning of the period

175,567,987

Net assets, end of the period

185,818,892

Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at

achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. Source: Company filings. Please see our Securities 23

and Exchange Commission filings for further information.

N A S D A Q : A F C G | F IR S T Q U A R T E R 2 0 2 6

BDC Overview

BDCs are closed-end investment companies regulated by the Securities and Exchange Commission

BDC Qualifications

To qualify as a BDC, companies must be registered in compliance with Section 54 of the Investment Company Act of 1940

Created by Congress in 1980 in order to:

̶ Provide public investors another means to invest in the long-term growth of private U.S. businesses

̶ Facilitate the flow of capital to companies lacking access to bank credit and public capital markets

Typically, BDCs elect to be treated as regulated investment companies (RICs), offering investors:

̶ Heightened transparency and embedded concentration limits

̶ Elimination of corporate taxation and the ability to retain capital gains and/or spillover of taxable income (i.e., BDCs are not subject to U.S. federal income tax on taxable income that is distributed to shareholders)

BDC regulations require a minimum asset coverage ratio which limits the amount of debt a BDC can take on

BDCs must invest at least 70% of assets in qualifying assets which typically include private operating companies

As a RIC, required to distribute at least 90% of their annual taxable

net income to shareholders in order to bypass corporate income taxes

As a RIC, at least 50% of the value of its total assets must be represented by cash, Government securities and securities of other regulated investment companies, and other securities with no one issuer greater than 5% of the value of the total assets

BDC portfolios marked to fair market value each quarter (vs. banks at cost)

BOARD OF DIRECTORS

Leonard M. Tannenbaum, CFA

Chairman of the Board (Class I)

Alexander Frank

Independent Director (Class III)

Thomas Harrison

Lead Independent Director (Class I)

Robert Levy

Independent Director (Class II)

Marnie Sudnow

Independent Director (Class III)

MANAGEMENT TEAM

Daniel Neville

Chief Executive Officer

Robyn Tannenbaum

Chief Investment Officer, President

Brandon Hetzel

Chief Financial Officer, Treasurer

Gabriel Katz

Chief Legal Officer

Jim Velgot

Chief Marketing Officer

Pete Sattelmair

Principal Financial Officer, Assistant Treasurer

RESEARCH COVERAGE

Alliance Global Partners

Aaron Grey

Seaport Global Securities LLC

Sonny Randhawa

Zuanic and Associates

Pablo Zuanic

GENERAL

Corporate Headquarters

477 S. Rosemary Avenue Suite 301

West Palm Beach, FL, 33401

Investor Relations

(561) 510-2293

[email protected]

Corporate Counsel

Dechert LLP

Independent Accounting Firm

CohnReznick LLP

Transfer Agent

Equiniti Trust Company, LLC (800) 937-5449

[email protected]

Securities Listing

Nasdaq: AFCG

Website

advancedflowercapital.com

Original Issue Discount ("OID")

Original Issue Discount ("OID") is recognized as a discount to the funded loan principal and is accreted to income over the term of the loan. Loans originated before July 31, 2020 were acquired by us, net of unaccreted OID, which we accrete to income over the remaining term of the loan. In some cases, additional OID is recognized from additional purchase discounts attributed to the fair value of equity positions that were separated from the loans prior to our acquisition of such loans. The estimated YTM Future Cash Interest Rate on loans with floating rates are based on its May 1, 2026, benchmark rate.

Yield to Maturity ("YTM")

YTM excludes loans on nonaccrual status. Estimated YTM includes a variety of fees and features that affect the total yield, which may include, but is not limited to, OID, exit fees, prepayment fees, unused fees and contingent features. The estimated YTM calculations require management to make estimates and assumptions, including, but not limited to, the timing and amounts of loan draws on delayed draw loans, the timing and collectability of exit fees, the probability and timing of prepayments and the probability of contingent features occurring. For example, certain credit agreements may contain provisions pursuant to which certain PIK interest rates and fees earned by us under such credit agreements will decrease upon the satisfaction of certain specified criteria which we believe may improve the risk profile of the applicable borrower. To be conservative, we have not assumed any prepayment penalties or early payoffs in our estimated YTM calculation. Estimated YTM is based on current management estimates and assumptions, which may change. Actual results could differ from those estimates and assumptions.

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Disclaimer

Advanced Flower Capital Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:37 UTC.