Advanced Flower Capital Inc 2025年度报告

ANNUAL REPORT 2025 April 16, 2026 Dear AFC Shareholders, 2025 was a year of transition for AFC. We entered the year with two primary objectives: 1) reduce ourexposure to underperforming credits through active portfolio management, and 2) convert from a real estateinvestment trust (“REIT”) to a business development company (“BDC”) to expand the universe oftransactions AFC could invest in. I am proud to report that we accomplished both. On the portfolio management front, from the start of 2025 through today we have received $117 million ofpaydowns from performing and underperforming credits. On the conversion front, we completed ourtransition from a REIT to a BDC effective January 1, 2026, following shareholder approval in November2025. This conversion expands AFC’s investment flexibility to pursue opportunities beyond real estate-backed cannabis loans, including a broader universe of operating businesses in the lower middle market.The AFC investment team has over 30 years of experience in direct lending outside of cannabis, with over$10 billion of direct lending transactions executed. While we have made significant progress reducing our exposure to underperforming credits, there is stillwork to be done. We currently have three loans on non-accrual and are focused on receiving paydowns onthose positions to redeploy that capital into performing credits that should contribute to current income. Ourearnings were impacted by the underperformance of some of our legacy loans and realized losses we tookon assets during the year. However, as we begin to get repaid on these underperforming loans and reinvestthat capital into new performing credits, we believe we may unlock future earnings potential. Since converting to a BDC, we have moved quickly to deploy capital into attractive opportunities in the lowermiddle market. In January 2026, AFC closed a $60 million senior secured credit facility to support thecombination of a leading revenue recovery specialist servicing the Walmart, Target, and Amazonecosystems with a procurement specialist focused on long-tail supplier negotiations for Fortune 1,000clients. In February, we committed $30 million to a $60 million senior secured term loan to support theacquisition and growth of a leading healthcare benefits platform tailored toward hourly and sub-$50,000salaried employees, which is a large and underserved segment of the workforce. These are exactly thetypes of deals we want to do going forward: loans to cash-flowing borrowers, backed by sponsors we like, atattractive yields. Since expanding our investable universe, our active pipeline has grown to over $1.4 billionof potential commitments under review. As we look ahead, we are focused on three priorities: continuing to resolve and recover value from ourunderperforming legacy credits, deploying capital into strong lower middle market credits at attractive risk-adjusted returns, and scaling our platform as a newly converted BDC. We are pleased to have come out ofthe gate in 2026 on strong footing with two solid non-cannabis loans, and we believe the expandedopportunity set positions AFC well to deliver long-term value for our shareholders. I want to thank you for your continued support as we navigate this important transition and strive tomaximize value for our shareholders in 2026 and beyond. Sincerely,Daniel NevilleChief Executive OfficerAdvanced Flower Capital Inc. UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-K ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934 For the fiscal year ended December 31, 2025 ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF 1934 For the transition period from __________ to __________ Commission File Number:001-39995 ADVANCED FLOWER CAPITAL INC. (Exact name of registrant as specified in its charter)Maryland85-1807125(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number) 477 S. Rosemary Ave.,Suite 301,West Palm Beach,FL33401(Address of principal executive offices) (Zip Code) (561) 510-2390(Registrant’s telephone number, including area code) N/A(Former name, former address and former fiscal year, if changed since last report) Securities registered pursuant to Section 12(b) of the Act: Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock, $0.01 par value per shareAFCGThe Nasdaq Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YesoNox Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.YesoNox Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12