What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-06 compared with 2025-08-07 · 401 added, 342 removed, 363 unchanged (67% of the section changed)

Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking

58 unchanged sentences

are an internally managed, non-diversified closed-end management investment company that has elected to be regulated as a business development

company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and has elected to be treated,

and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code

of 1986, as amended (the “Code”).

investment objective is to maximize our portfolio’s total return, principally by seeking capital gains on our equity and

equity-related investments, and to a lesser extent, income from debt investments.

We invest principally in the equity securities of

what we believe to be rapidly growing venture capital-backed emerging companies.

We acquire our investments through direct

investments in prospective portfolio companies, secondary marketplaces for private companies, negotiations with selling

stockholders, and through investments in special purpose vehicles (“SPVs”) and investment funds that invest directly in

the equity or debt of a single private issuer.

In addition, we may invest in private credit and in the founders equity, founders

warrants, venture capital investment funds, and private investment in public equity (“PIPE”) transactions of special

purpose acquisition companies (“SPACs”).

We may also invest on an opportunistic basis in select publicly traded equity

securities, private equity funds and hedge funds that are excluded from the definition of “investment company” under

the 1940 Act by Section 3(c)(1) or 3(c)(7) of the 1940 Act, or certain non-U.S.

companies that otherwise

meet our investment criteria, subject to applicable requirements of the 1940 Act.

company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and has elected to be

treated, and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue

Code of 1986, as amended (the “Code”).

investment objective is to maximize our portfolio’s total return, principally by seeking capital gains on our equity and equity-related

investments, and to a lesser extent, income from debt investments.

We invest principally in the equity securities of what we believe

to be rapidly growing venture capital-backed emerging companies.

We acquire our investments through direct investments in prospective

portfolio companies, secondary marketplaces for private companies, negotiations with selling stockholders, and through investments in

special purpose vehicles (“SPVs”) and investment funds that invest directly in the equity or debt of a single private issuer.

In addition, we may invest in private credit and in the founders equity, founders warrants, venture capital investment funds, and private

investment in public equity (“PIPE”) transactions of special purpose acquisition companies (“SPACs”).

also invest on an opportunistic basis in select publicly traded equity securities, private equity funds and hedge funds that are excluded

from the definition of “investment company” under the 1940 Act by Section 3(c)(1) or 3(c)(7) of the 1940 Act, or certain

companies that otherwise meet our investment criteria, subject to applicable requirements of the 1940 Act.

regard to the regulatory requirements for BDCs under the 1940 Act, some of these investments may not qualify as investments in “eligible

7 unchanged sentences

however, to dispose of any non-qualifying assets in such circumstances.

investment philosophy is based on a disciplined approach of identifying promising investments in high-growth, venture-backed

companies across several key industry themes which may include, among others, Software-as-a-Service, Artificial Intelligence

Infrastructure & Applications, Consumer Goods & Services, Education Technology, Logistics & Supply Chain, Financial

Technology & Services, and SuRo Capital Sports.

Our investment decisions are based on a disciplined analysis of available

information regarding each potential portfolio company’s business operations, focusing on the portfolio company’s growth

potential, the quality of recurring revenues, and path to profitability, as well as an understanding of key market fundamentals.

Venture capital funds or other institutional investors have invested in the vast majority of companies we evaluate.

investment philosophy is based on a disciplined approach of identifying promising investments in high-growth, venture-backed companies

across several key industry themes which may include, among others, Software-as-a-Service, Artificial Intelligence Infrastructure &

Applications, Consumer Goods & Services, Education Technology, Logistics & Supply Chain, Financial Technology & Services,

and SuRo Capital Sports.

Our investment decisions are based on a disciplined analysis of available information regarding each potential

portfolio company’s business operations, focusing on the portfolio company’s growth potential, the quality of recurring revenues,

and path to profitability, as well as an understanding of key market fundamentals.

Venture capital funds or other institutional investors

have invested in the vast majority of companies we evaluate.

seek to deploy capital primarily in the form of non-controlling equity and equity-related investments, including common stock, warrants,

24 unchanged sentences

and Investment Activity

Months Ended June 30, 2025

Months Ended September 30, 2025

value of our investment portfolio will change over time due to changes in the fair value of our underlying investments, as well as changes

in the composition of our portfolio resulting from purchases of new and follow-on investments and the sales of existing investments.

The fair value as of June 30, 2025 of all of our portfolio investments was $243,798,547.

the six months ended June 30, 2025, we funded investments in an aggregate amount of $6,302,884 (not including capitalized transaction

The fair value as of September 30, 2025 of all of our portfolio investments was $252,195,540.

the nine months ended September 30, 2025, we funded investments in an aggregate amount of $11,552,884 (not including capitalized transaction

costs) as shown in the following table:

Portfolio Company

Transaction Date

Orchard Technologies, Inc.

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Common Shares, Class A

(1) SuRo Capital’s

investment in the Class A Common Shares of Plaid Inc.

was made through 1789 Capital Nirvana

II LP, an SPV in which SuRo Capital is the Sole Limited Partner.

SuRo Capital paid a 7% origination fee at the

time of investment.

the six months ended June 30, 2025, we capitalized fees of $400,237.

the six months ended June 30, 2025, we exited or received proceeds from investments in the amount of $41,251,774, net of transaction

Supplying Demand, Inc.

(d/b/a Liquid Death)

4.12% Convertible Note Due June

Preferred Shares

Capital’s investment in the Class A Common Shares of Plaid Inc.

was made through 1789

Capital Nirvana II LP, an SPV in which SuRo Capital is the Sole Limited Partner.

paid a 7% origination fee at the time of investment.

Digital Assets Inc.’s primary purpose is to invest in HYPE,

the digital token of Hyperliquid.

the nine months ended September 30, 2025, we capitalized fees of $490,070.

the nine months ended September 30, 2025, we exited or received proceeds from investments in the amount of $49,066,513, net of transaction

costs, and realized a net gain on investments of $26,391,459 (including adjustments to amounts held in escrow receivable) as shown in

following table:

Portfolio Company

Transaction Date

Share Price (1)

Net Share Price (1)

CoreWeave, Inc.

ServiceTitan, Inc.

CW Opportunity 2 LP (5)

Digital Holdings Inc.

- Warrants (6)

average net share price is the net share price realized after deducting all commissions and

3 unchanged sentences

public common

As of June 30, 2025, we continue to hold the entirety of our interest in CW Opportunity

of June 27, 2025, we had sold our entire position in ServiceTitan, Inc.

public common shares.

the six months ended June 30, 2025, we did not write-off any investments.

Months Ended June 30, 2024

(5) As of September 30, 2025, we continue to hold approximately 83.4% of our investment in CW Opportunity 2, LP.

of September 30, 2025, SuRo Capital held 1,204,488 remaining GrabAGun Digital Holdings Inc.

public warrants.

the nine months ended September 30, 2025, we did not write-off any investments.

Months Ended September 30, 2024

value of our investment portfolio will change over time due to changes in the fair value of our underlying investments, as well as changes

in the composition of our portfolio resulting from purchases of new and follow-on investments and the sales of existing investments.

The fair value as of June 30, 2024 of all of our portfolio investments was $182,904,880.

the six months ended June 30, 2024, we funded investments in an aggregate amount of $34,999,944 (not including capitalized transaction

The fair value as of September 30, 2024 of all of our portfolio investments was $199,302,778.

the nine months ended September 30, 2024, we funded investments in an aggregate amount of $57,500,344 (not including capitalized transaction

costs) as shown in the following table:

Portfolio Company

Transaction Date

Gross Payments

Supplying Demand, Inc.

(d/b/a Liquid Death)

(d/b/a Liquid

Preferred shares, Series F-1

1 unchanged sentence

CW Opportunity 2 LP (1)

Interest, Class A

Opportunity 2 LP is an SPV that is solely invested in the Series C Preferred Shares of CoreWeave,

SuRo Capital Corp.

is invested in the Series C Preferred Shares of CoreWeave, Inc.

through its investment in the

Class A Interest of CW Opportunity 2 LP.

the six months ended June 30, 2024, we capitalized fees of $73,100.

the six months ended June 30, 2024, we exited or received proceeds from investments (not including short-term U.S.

Treasury bills) in

the amount of $10,551,335, net of transaction costs, and realized a net loss on investments of $453,686 (including adjustments to amounts

held in escrow receivable) as shown in following table:

Portfolio Company

Share Price (1)

Membership Interest, Class A

ARK Type One Deep Ventures

Membership Interest, Class A

CoreWeave, Inc.

Common shares

Opportunity 2 LP is a special purpose vehicle (“SPV”) that is solely invested

in the Series C Preferred Shares of CoreWeave, Inc.

We are invested in the Series C Preferred

Shares of CoreWeave, Inc.

through our investment in the Class A Interest of CW Opportunity

Type One Deep Ventures Fund LLC is an investment fund for which the Class A Interest is solely

invested in the Convertible Equity of OpenAI Global, LLC.

We are invested in the Convertible

Equity of OpenAI Global, LLC through our investment in the Class A Interest of ARK Type One

Deep Ventures Fund LLC.

the nine months ended September 30, 2024, we capitalized fees of $286,411.

the nine months ended September 30, 2024, we exited or received proceeds from investments (not including short-term U.S.

Treasury bills)

in the amount of $14,941,469, net of transaction costs, and realized a net loss on investments of $14,167,198 (including adjustments

to amounts held in escrow receivable) as shown in following table:

Net Share Price (1)

Gain/(Loss) (2)

Nextdoor Holdings, Inc.

Nextdoor Holdings,

PSQ Holdings, Inc.

(d/b/a PublicSquare) - Warrants (4)

Architect Capital PayJoy SPV, LLC (5)

True Global Ventures 4 Plus Pte Ltd (6)

PublicSquare) - Warrants (4)

Architect Capital PayJoy SPV,

True Global Ventures 4 Plus

PSQ Holdings, Inc.

PublicSq.) - Public Common Shares (7)

Churchill Sponsor VII LLC

YouBet Technology, Inc.

(d/b/a FanPower)

OneValley, Inc.

(f/k/a NestGSV,

(f/k/a GSV Sustainability Partners, Inc.) (9)

$ (14,064,042 )

average net share price is the net share price realized after deducting all commissions and

3 unchanged sentences

public common shares.

of June 30, 2024, we held 2,296,037 remaining PSQ Holdings, Inc.

(d/b/a PublicSquare) public

of September 30, 2024, we held 2,296,037 remaining PSQ Holdings, Inc.

(d/b/a PublicSquare)

public warrants.

June 28, 2024, we redeemed the entirety of our Membership Interest in Architect Capital PayJoy

(6) On June 28, 2024, we received a return

of capital distribution from our investment in True Global Ventures 4 Plus Pte Ltd.

the six months ended June 30, 2024, we did not write-off any investments.

June 28, 2024, we received a return of capital distribution from our investment in True Global

Ventures 4 Plus Pte Ltd.

of September 30, 2024, we held 1,616,187 remaining PSQ Holdings, Inc.

(d/b/a PublicSquare)

public common shares.

August 29, 2024, we sold our remaining position in OneValley, Inc.

(f/k/a NestGSV, Inc.).

September 20, 2024, SPBRX, INC.

(f/k/a GSV Sustainability Partners, Inc.) dissolved its business

and made a final distribution.

the nine months ended September 30, 2024, we wrote-off our investments in Churchill Sponsor VII LLC and YouBet Technology, Inc.

FanPower) following their dissolution.

of Operations

of the three and six months ended June 30, 2025 and 2024

results for the three and six months ended June 30, 2025 and 2024 are as follows:

Months Ended June 30,

Investment Income

of the three and nine months ended September 30, 2025 and 2024

results for the three and nine months ended September 30, 2025 and 2024 are as follows:

Months Ended September 30,

Total Investment

Interest income

Dividend income

Total Operating

Total Operating Expenses

Compensation expense

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Other expenses

Net Investment

Net Investment Loss

$ (3,454,815 )

2 unchanged sentences

$ (10,086,400 )

Net realized gain/(loss) on

Realized loss on partial repurchase

of 6.00% Notes due December 30, 2026

Net realized gain/(loss) on investments

(13,713,512 )

(14,167,198 )

Realized loss on partial repurchase of 6.00%

Notes due December 30, 2026

Net change in unrealized appreciation/(depreciation)

1 unchanged sentence

(13,769,932 )

in Net Assets Resulting from Operations

Net Change in Net Assets

Resulting from Operations

$ (5,452,245 )

$ (38,168,774 )

income decreased to $167,304 for the three months ended June 30, 2025 from $1,027,353 for the three months ended June 30, 2024.

decrease between periods was primarily due to the cessation of interest income from short-term U.S.

Treasury bills and a decrease in

interest income received on cash, in addition to no longer receiving interest income from Architect Capital PayJoy SPV, LLC following

income decreased to $459,269 for the three months ended September 30, 2025 from $888,717 for the three months ended September 30,

The net decrease between periods was primarily due to a decrease in interest income received on cash, in addition to no longer

receiving interest income from Architect Capital PayJoy SPV, LLC following the redemption of our investment in June 2024, and the

cessation of dividend income from CW Opportunity 2 LP.

These decreases were offset by an increase in interest accruals on our investment in the Supplying Demand, Inc.

(d/b/a Liquid Death) Convertible Note during the three months ended September 30, 2025, relative to the three months ended

September 30, 2024.

income decreased to $1,125,667 for the nine months ended September 30, 2025 from $3,444,161 for the nine months ended September 30, 2024.

The net decrease between periods was primarily due to the cessation of interest income from short-term U.S.

Treasury bills and a decrease

in interest income received on cash, in addition to no longer receiving interest income from Architect Capital PayJoy SPV, LLC following

the redemption of our investment in June 2024.

Additional decreases were related to a decrease in interest income from interest accruals

on our debt investment in Xgroup Holdings Limited (d/b/a Xpoint) during the three months ended June 30, 2025, relative to the three months

ended June 30, 2024.

income decreased to $666,398 for the six months ended June 30, 2025 from $2,555,444 for the six months ended June 30, 2024.

The net decrease

between periods was primarily due to the cessation of interest income from short-term U.S.

Treasury bills and a decrease in interest

income received on cash, in addition to no longer receiving interest income from Architect Capital PayJoy SPV, LLC following the redemption

of our investment in June 2024.

Additional decreases were related to a decrease in interest income from interest accruals on our debt

investment in Xgroup Holdings Limited (d/b/a Xpoint), and a decrease in dividend income from Aventine Property Group, Inc.

pause placed on their declaration of dividends that began in August 2024.

The decreases were offset by an increase in dividend income

from CW Opportunity 2 LP during the six months ended June 30, 2025, relative to the six months ended June 30, 2024.

operating expenses decreased to $3,889,464 for the three months ended June 30, 2025 from $4,682,978 for the three months ended June

The decrease in operating expense was primarily due to decreases in compensation expense and other expenses, in addition

to a decrease in income tax expense due to the receipt of a prior year tax refund in the current period.

These decreases were partially offset by

increases in professional fees, interest expense, and directors’ fees during the three months ended June 30, 2025, relative to

the three months ended June 30, 2024.

operating expenses decreased to $8,050,327 for the six months ended June 30, 2025 from $9,433,971 for the six months ended June 30,

The decrease in operating expense was primarily due to decreases in compensation expense and other expenses, in addition to a

decrease in income tax expense due to the receipt of a prior year tax refund in the current period.

These decreases were partially offset by

increases in professional fees, interest expense, and directors’ fees during the six months ended June 30, 2025, relative to

the six months ended June 30, 2024.

on our debt investment in Xgroup Holdings Limited (d/b/a Xpoint), and a decrease in dividend income from Aventine Property Group, Inc.

due to the pause placed on their declaration of dividends that began in August 2024.

The decreases were offset by an increase in dividend

income from CW Opportunity 2 LP and an increase in interest accruals on our investment in the Supplying Demand, Inc.

(d/b/a Liquid Death) Convertible

Note during the nine months ended September 30, 2025, relative to the nine months ended September 30, 2024.

operating expenses decreased to $3,914,084 for the three months ended September 30, 2025 from $4,096,590 for the three months ended September 30,

The decrease in operating expense was primarily due to decreases in compensation expense, professional fees, and other expenses.

These decreases were partially offset by increases

in interest expense and directors’ fees during the three months ended September 30, 2025, relative to the three

months ended September 30, 2024.

operating expenses decreased to $11,964,411 for the nine months ended September 30, 2025 from $13,530,561 for the nine months ended September

The decrease in operating expense was primarily due to decreases in compensation expense, professional fees, and other expenses, in addition to

a decrease in income tax expense due to the receipt of a prior year tax refund.

These decreases were partially

offset by increases in interest expense and directors’ fees during the nine months ended September 30, 2025,

relative to the nine months ended September 30, 2024.

Investment Loss

the three months ended June 30, 2025, we recognized a net investment loss of $3,722,160, compared to a net investment loss of $3,655,625

for the three months ended June 30, 2024.

the three months ended September 30, 2025, we recognized a net investment loss of $3,454,815 compared to a net investment loss of $3,207,873

for the three months ended September 30, 2024.

The change between periods resulted from a decrease in total investment income and operating

expenses during the three months ended June 30, 2025, relative to the three months ended June 30, 2024.

the six months ended June 30, 2025, we recognized a net investment loss of $7,383,929, compared to a net investment loss of $6,878,527

for the six months ended June 30, 2024.

expenses during the three months ended September 30, 2025, relative to the three months ended September 30, 2024.

the nine months ended September 30, 2025, we recognized a net investment loss of $10,838,744, compared to a net investment loss of $10,086,400

for the nine months ended September 30, 2024.

The change between periods resulted from a decrease in total investment income and operating

expenses during the six months ended June 30, 2025, relative to the six months ended June 30, 2024.

expenses during the nine months ended September 30, 2025, relative to the nine months ended September 30, 2024.

Realized Gain/(Loss) on Investments

the three months ended June 30, 2025, we recognized a net realized gain on our investments of $21,212,611, compared to a net

realized loss of $29,612 for the three months ended June 30, 2024.

The components of our net realized gains or losses on portfolio

investments for the three months ended June 30, 2025 and 2024, excluding short-term U.S.

Treasury bills and fluctuations in escrow

receivables estimates, are reflected in the tables above, under “—Portfolio and Investment Activity.”

the six months ended June 30, 2025, we recognized a net realized gain on our investments of $21,194,660, compared to a net realized

loss of $453,686 for the six months ended June 30, 2024.

the three months ended September 30, 2025, we recognized a net realized gain on our investments of $5,196,799, compared to a net realized

loss of $13,713,512 for the three months ended September 30, 2024.

The components of our net realized gains or losses on portfolio investments

for the six months ended June 30, 2025 and 2024, excluding short-term U.S.

for the three months ended September 30, 2025 and 2024, excluding short-term U.S.

Treasury bills and fluctuations in escrow receivables

estimates, are reflected in the tables above, under “—Portfolio and Investment Activity.”

the nine months ended September 30, 2025, we recognized a net realized gain on our investments of $26,391,459, compared to a net realized

loss of $14,167,198 for the nine months ended September 30, 2024.

The components of our net realized gains or losses on portfolio investments

for the nine months ended September 30, 2025 and 2024, excluding short-term U.S.

Treasury bills and fluctuations in escrow receivables

estimates, are reflected in the tables above, under “—Portfolio and Investment Activity.”

Change in Unrealized Appreciation/(Depreciation) of Investments

the three months ended June 30, 2025, we had a net change in unrealized appreciation/(depreciation) of $44,837,619.

For the three months

ended June 30, 2024, we had a net change in unrealized appreciation/(depreciation) of $(6,965,946).

The following tables summarize, by

portfolio company, the significant changes in unrealized appreciation/(depreciation) of our investment portfolio for the three months

ended June 30, 2025 and 2024.

Portfolio Company

Net Change in

Appreciation/

(Depreciation) For the

Three Months Ended

June 30, 2025

Portfolio Company

Net Change in

Appreciation/

(Depreciation) For the

Three Months Ended

June 30, 2024

the three months ended September 30, 2025, we had a net change in unrealized appreciation/(depreciation) of $5,675,109.

For the three

months ended September 30, 2024, we had a net change in unrealized appreciation/(depreciation) of $11,614,384.

The following tables summarize,

by portfolio company, the significant changes in unrealized appreciation/(depreciation) of our investment portfolio for the three months

ended September 30, 2025 and 2024.

Change in Unrealized Appreciation/(Depreciation) For the Three Months Ended September 30, 2025

Change in Unrealized Appreciation/(Depreciation) For the Three Months Ended September 30, 2024

Blink Health, Inc.

OneValley, Inc.

(f/k/a NestGSV, Inc.) (1)

(f/k/a GSV Sustainability

Partners, Inc.) (1)

Neutron Holdings, Inc.

(d/b/a/ Lime)

CW Opportunity 2 LP

Shogun Enterprises, Inc.

(d/b/a Hearth)

FourKites, Inc.

CW Opportunity 2 LP (1)

Blink Health, Inc.

Colombier Sponsor II LLC

ServiceTitan, Inc.

CoreWeave, Inc.

StormWind, LLC

GrabAGun Digital Holdings Inc.

(13,822,034 )

PSQ Holdings, Inc.

(d/b/a PublicSquare)

PublicSquare) (1)

Learneo, Inc.

(f/k/a Course Hero, Inc.)

(13,945,631 )

FourKites, Inc.

Locus Robotics Corp.

Blink Health, Inc.

ServiceTitan, Inc.

$ (6,965,946 )

change in unrealized appreciation/(depreciation) reflected for these investments resulted

2 unchanged sentences

represents investments for which individual changes in unrealized appreciation/(depreciation)

was less than $1.0 million for the three months ended June 30, 2025 and 2024.

the six months ended June 30, 2025, we had a net change in unrealized appreciation/(depreciation) of $47,726,497.

For the six months

ended June 30, 2024, we had a net change in unrealized appreciation/(depreciation) of $(25,384,316).

The following tables summarize,

by portfolio company, the significant changes in unrealized appreciation/(depreciation) of our investment portfolio for the six

months ended June 30, 2025 and 2024.

Portfolio Company

Net Change in

Appreciation/

(Depreciation) For the

Six Months Ended

June 30, 2025

Portfolio Company

Net Change in

Appreciation/

(Depreciation) For the

Six Months Ended

June 30, 2024

was less than $1.0 million for the three months ended September 30, 2025 and 2024.

the nine months ended September 30, 2025, we had a net change in unrealized appreciation/(depreciation) of $53,401,606.

months ended September 30, 2024, we had a net change in unrealized appreciation/(depreciation) of $(13,769,932).

The following tables

summarize, by portfolio company, the significant changes in unrealized appreciation/(depreciation) of our investment portfolio for the

nine months ended September 30, 2025 and 2024.

Change in Unrealized Appreciation/(Depreciation) For the Nine Months Ended September 30, 2025

Change in Unrealized Appreciation/(Depreciation) For the Nine Months Ended September 30, 2024

CW Opportunity 2 LP (1)

Blink Health, Inc.

Colombier Sponsor II LLC

ServiceTitan, Inc.

OneValley, Inc.

(f/k/a NestGSV, Inc.) (1)

(f/k/a GSV Sustainability

Partners, Inc.) (1)

ARK Type One Deep Ventures Fund LLC

Blink Health, Inc.

GrabAGun Digital Holdings Inc.

FourKites, Inc.

Xgroup Holdings Limited (d/b/a Xpoint)

Shogun Enterprises, Inc.

(d/b/a Hearth)

Orchard Technologies, Inc.

Residential Homes for Rent, LLC (d/b/a Second Avenue)

ServiceTitan, Inc.

CW Opportunity 2 LP

Neutron Holdings, Inc.

(d/b/a/ Lime)

Varo Money, Inc.

PSQ Holdings, Inc.

(d/b/a PublicSquare)

Forge Global, Inc.

Orchard Technologies, Inc.

Learneo, Inc.

(f/k/a Course Hero, Inc.)

PSQ Holdings, Inc.

(d/b/a PublicSquare)

FourKites, Inc.

StormWind, LLC

Forge Global, Inc.

ServiceTitan, Inc.

StormWind, LLC

FourKites, Inc.

PSQ Holdings, Inc.

PublicSquare) (1)

Learneo, Inc.

1 unchanged sentence

(35,149,678 )

Blink Health, Inc.

$ (13,769,932 )

(1) The change in unrealized appreciation/(depreciation)

reflected for these investments resulted from the full or partial exit of the investment, which resulted in the reversal of previously

change in unrealized appreciation/(depreciation) reflected for these investments resulted

from the full or partial exit of the investment, which resulted in the reversal of previously

accrued unrealized appreciation/(depreciation), as applicable.

represents investments for which individual changes in unrealized appreciation/(depreciation)

was less than $1.0 million for the six months ended June 30, 2025 and 2024.

was less than $1.0 million for the nine months ended September 30, 2025 and 2024.

and Capital Resources

2 unchanged sentences

below under “Equity Issuances and Debt Capital Activities—At-the-Market Offering”.

On December 17, 2021,

we issued $75.0 million aggregate principal amount of our 6.00% Notes due 2026 (the “6.00% Notes due 2026”), of which $39.7

million remain outstanding as of June 30, 2025.

In addition, on August 14, 2024, we issued $25.0 million in aggregate principal amount of 6.50% Convertible

Notes due 2029, and on October 9, 2024 and January 16, 2025, we issued $5.0 million and $5.0 million, respectively, in aggregate principal

amount of the Additional Notes (as defined below), all of which remain outstanding.

For additional information, see “Equity Issuances

and Debt Capital Activities - 6.50% Convertible Notes due 2029” below and “Note 10—Debt Capital Activities” to

our Condensed Consolidated Financial Statements as of June 30, 2025.

On December 17, 2021, we issued

$75.0 million aggregate principal amount of our 6.00% Notes due 2026 (the “6.00% Notes due 2026”), of which $39.7 million

remain outstanding as of September 30, 2025.

In addition, on August 14, 2024, we issued $25.0 million in aggregate principal amount of 6.50%

Convertible Notes due 2029, and on October 9, 2024 and January 16, 2025, we issued $5.0 million and $5.0 million, respectively, in aggregate

principal amount of the Additional Notes (as defined below), all of which remain outstanding.

For additional information, see “Equity

Issuances and Debt Capital Activities—6.50% Convertible Notes due 2029” below and “Note 10—Debt Capital Activities”

to our Condensed Consolidated Financial Statements as of September 30, 2025.

primary uses of cash are to make investments, pay our operating expenses, and make distributions to our stockholders.

months ended June 30, 2025 and 2024, our operating expenses, including interest payments on our debt obligations, were $8,050,327 and

For the nine months

ended September 30, 2025 and 2024, our operating expenses, including interest payments on our debt obligations, were $11,964,411 and

$13,530,561, respectively.

Cash Reserves and Liquid Securities

June 30, 2025

December 31, 2024

Cash Reserves

and Liquid Securities

Restricted cash (1)

1 unchanged sentence

Unrestricted securities (2)

Subject to other sales restrictions (3)

Securities of publicly traded portfolio companies

Total Cash Reserves and Liquid Securities

(1) Restricted Cash consists of amounts that

are held in a separate account and are subject to specific contractual restrictions that limit their availability for general corporate

to other sales restrictions (3)

Securities of publicly

traded portfolio companies

Cash Reserves and Liquid Securities

(1) Restricted

Cash consists of amounts that are held in a separate account and are subject to specific

contractual restrictions that limit their availability for general corporate use.

(2) “Unrestricted

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(3) Securities

of publicly traded portfolio companies “subject to other sales restrictions” represents

common stock of our publicly traded portfolio companies that are currently subject to certain

lock-up restrictions.

During the six months

ended June 30, 2025, cash increased to $49,891,542 from $20,035,640 at the beginning of the year.

The increase in cash was primarily

due to the sale of public securities.

The increase was offset by payment of our operating expenses and payment of interest on the 6.00%

Notes due 2026 and 6.50% Convertible Notes due 2029.

of publicly traded portfolio companies “subject to other sales restrictions”

represents common stock of our publicly traded portfolio companies that are currently subject

to certain lock-up restrictions.

the nine months ended September 30, 2025, cash increased to $54,587,797 from $20,035,640 at the beginning of the year.

in cash was primarily due to the sale of public securities and proceeds from the sale of our common stock.

The increase was offset

by payment of our operating expenses and interest expense on the 6.00% Notes due 2026 and 6.50% Convertible Notes due

we believe we have ample liquidity to support our near-term capital requirements.

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the current circumstances.

summary of our significant contractual payment obligations as of June 30, 2025 is as follows:

Payments Due By Period (in millions)

summary of our significant contractual payment obligations as of September 30, 2025 is as follows:

Due By Period (in millions)

6.00% Notes due

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Operating lease liability

the principal balance payable for the 6.00% Notes due 2026 as of June 30, 2025.

“Note 10—Debt Capital Activities” in our Condensed Consolidated Financial

Statements as of June 30, 2025 for more information.

the principal balance payable for the 6.50% Convertible Notes due 2029 as of June 30, 2025.

the principal balance payable for the 6.00% Notes due 2026 as of September 30, 2025.

to “Note 10—Debt Capital Activities” in our Condensed Consolidated Financial

Statements as of September 30, 2025 for more information.

the principal balance payable for the 6.50% Convertible Notes due 2029 as of September 30,

Refer to “Note 10—Debt Capital Activities” in our Condensed Consolidated

Financial Statements as of June 30, 2025 for more information.

Financial Statements as of September 30, 2025 for more information.

Repurchase Program

the three and six months ended June 30, 2025 and 2024, we did not repurchase any shares of our common stock under

the discretionary open-market Share Repurchase Program.

As of June 30, 2025, the dollar value of shares that remained available to be

purchased under the Share Repurchase Program is approximately $25.0 million.

Currently, the Share Repurchase Program is authorized until

the earlier of (i) October 31, 2025 or (ii) the repurchase of $64.3 million in aggregate amount of our common stock.

the three and nine months ended September 30, 2025 and 2024, we did not repurchase any shares of our common stock under the discretionary

open-market Share Repurchase Program.

As of September 30, 2025, the dollar value of shares that remained available to be purchased under

the Share Repurchase Program is approximately $25.0 million.

Currently, the Share Repurchase Program is authorized until the earlier

of (i) October 31, 2025 or (ii) the repurchase of $64.3 million in aggregate amount of our common stock.

the Share Repurchase Program, we may repurchase our outstanding common stock in the open market, provided that we comply with the prohibitions

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For more information on the Share Repurchase Program,

see “Note 5—Common Stock” to our Condensed Consolidated Financial Statements as of June 30, 2025.

see “Note 5—Common Stock” to our Condensed Consolidated Financial Statements as of September 30, 2025.

Sheet Arrangements

of June 30, 2025 and December 31, 2024, we had no off-balance sheet arrangements, including any risk management of commodity pricing

of September 30, 2025 and December 31, 2024, we had no off-balance sheet arrangements, including any risk management of commodity pricing

or other hedging practices.

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investment objective and strategy and for general corporate purposes.

the six months ended June 30, 2025 and 2024, we did not issue or sell Shares under the ATM Program.

As of June 30, 2025 and June 30,

2024, up to approximately $98.8 million in aggregate amount of the Shares remain available for sale under the ATM Program.

to “Note 5—Common Stock” to our Condensed Consolidated Financial Statements as of June 30, 2025 for more information

the three and nine months ended September 30, 2025, the Company sold 1,230,984 Shares under the ATM Program.

During the three and nine

months ended September 30, 2024, the Company did not issue or sell Shares under the ATM Program.

As of September 30, 2025, up to approximately

$88.0 million in aggregate amount of the Shares remain available for sale under the ATM Program.

following table summarizes certain information relating to shares sold under the ATM Program:

Three Months Ended September 30,

Nine Months Ended September 30,

Number of shares sold

Gross proceeds received

Net proceeds received

Weighted average price per share

to “Note 5—Common Stock” to our Condensed Consolidated Financial Statements as of September 30, 2025 for more information

regarding the ATM Program.

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December 17, 2021, we issued $ 70.0 million aggregate principal amount of 6.00 % Notes due 2026, which bear interest at a fixed rate of

6.00% per year, payable quarterly in arrears on March 30, June 30, September 30, and December 30 of each year, commencing on

March 30, 2022.

6.00% per year, payable quarterly in arrears on March 30, June 30, September 30, and December 30 of each year, commencing on March 30,

On December 21, 2021, we issued an additional $5.0 million aggregate principal amount of 6.00% Notes due 2026.

approximately $73.0 million in proceeds from the offering, net of underwriting discounts and commissions and other offering expenses.

The 6.00% Notes due 2026 have a maturity date of December 30, 2026, unless previously repurchased or redeemed in accordance with their

We have the right to redeem the 6.00% Notes due 2026, in whole or in part, at any time or from time to time, on or after December

30, 2024 at a redemption price of 100% of the aggregate principal amount thereof plus accrued and unpaid interest.

We received approximately

$73.0 million in proceeds from the offering, net of underwriting discounts and commissions and other offering expenses.

The 6.00% Notes

due 2026 have a maturity date of December 30, 2026, unless previously repurchased or redeemed in accordance with their terms.

the right to redeem the 6.00% Notes due 2026, in whole or in part, at any time or from time to time, on or after December 30, 2024 at

a redemption price of 100% of the aggregate principal amount thereof plus accrued and unpaid interest.

August 6, 2024, our Board of Directors approved a discretionary note repurchase program (the “Note Repurchase Program”) which

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repurchased and retired $30.3 million of aggregate principal amount of the 6.00% Notes due 2026.

During the three and six months ended

June 30, 2025, the Company repurchased and retired $0 and $5.0 million, respectively, of aggregate principal amount of the 6.00% Notes due 2026, resulting

in the total use of the authorized amount under the Note Repurchase Program.

to “Note 10—Debt Capital Activities” to our Condensed Consolidated Financial Statements as of June 30, 2025 for more

information regarding the 6.00% Notes due 2026.

During the three and nine months ended

September 30, 2025, the Company repurchased and retired $0 and $5.0 million, respectively, of aggregate principal amount of the 6.00%

Notes due 2026, resulting in the total use of the authorized amount under the Note Repurchase Program.

to “Note 10—Debt Capital Activities” to our Condensed Consolidated Financial Statements as of September 30, 2025 for

more information regarding the 6.00% Notes due 2026.

Convertible Notes due 2029

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as provided in the Notes Purchase Agreement.

to “—Recent Developments” and “Note 10—Debt Capital Activities” to our Condensed Consolidated

Financial Statements as of June 30, 2025 for more information regarding the 6.50% Convertible Notes due 2029.

Effective as of July 21, 2025, the conversion rate applicable to the 6.50% Convertible Notes due 2029 was adjusted

to $7.53 per share (132.7530 shares of the Company’s common stock per $1,000 principal amount of the 6.50% Convertible Notes due 2029)

from the initial conversion price of $7.75 per share (129.0323 shares of the Company’s common stock per $1,000 principal amount of the

6.50% Convertible Notes due 2029), which had been effective since issuance.

The adjustment to the conversion rate of the 6.50% Convertible

Notes due 2029 was made pursuant to the Note Purchase Agreement governing the 6.50% Convertible Notes due 2029 as a result of the Company’s

cash dividend of $0.25 per share, paid on July 31, 2025 to stockholders of record as of the close of business on July 21, 2025.

Refer to “Part I.

Item 2—Recent Developments” and “Note 10—Debt

Capital Activities” to our Condensed Consolidated Financial Statements as of September 30, 2025 for more information regarding the

6.50% Convertible Notes due 2029.

Distributions

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The following table lists the distributions, including dividends and returns of capital, if any, per share

that we have declared since our formation through June 30, 2025.

that we have declared since our formation through September 30, 2025.

The table is divided by fiscal year according to record date:

Date Declared

Amount per Share

November 16, 2015

December 31, 2015

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March 25, 2022

April 15, 2022

The distribution

was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to

all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders.

July 3, 2025 (16)

July 21, 2025

July 31, 2025

distribution was paid in cash or shares of our common stock at the election of stockholders,

although the total amount of cash distributed to all stockholders was limited to approximately

50% of the total distribution to be paid to all stockholders.

As a result of stockholder

elections, the distribution consisted of 2,860,903 shares of common stock issued in lieu of cash, or approximately 14.8% of our outstanding

shares prior to the distribution, as well as cash of $26,358,885.

elections, the distribution consisted of 2,860,903 shares of common stock issued in lieu

of cash, or approximately 14.8% of our outstanding shares prior to the distribution, as well

as cash of $26,358,885.

The number of shares of common stock comprising the stock portion

was calculated based on a price of $9.425 per share, which equaled the average of the volume weighted-average trading price per share

of our common stock on December 28, 29 and 30, 2015.

was calculated based on a price of $9.425 per share, which equaled the average of the volume

weighted-average trading price per share of our common stock on December 28, 29 and 30, 2015.

None of the $2.76 per share distribution represented a return of capital.

Of the total distribution

of $887,240 on August 24, 2016, $820,753 represented a distribution from realized gains, and $66,487 represented a return of capital.

All of the $3,512,849 distribution

paid on December 12, 2019 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $2,107,709 distribution

paid on January 15, 2020 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $2,516,452 distribution

paid on August 25, 2020 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $5,071,326 distribution

paid on October 20, 2020 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $4,978,504 distribution

paid on November 30, 2020 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $4,381,084 distribution

paid on January 15, 2021 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $4,981,131 distribution

paid on February 19, 2021 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $6,051,304 distribution

paid on April 15, 2021 represented a distribution from realized gains.

the total distribution of $887,240 on August 24, 2016, $820,753 represented a distribution

from realized gains, and $66,487 represented a return of capital.

of the $3,512,849 distribution paid on December 12, 2019 represented a distribution from

realized gains.

None of the distribution represented a return of capital.

The distribution was paid

in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to all stockholders

was limited to approximately 50% of the total distribution to be paid to all stockholders.

As a result of stockholder elections,

the distribution consisted of 2,335,527 shares of common stock issued in lieu of cash, or approximately 9.6% of our outstanding shares

prior to the distribution, as well as cash of $29,987,589.

The number of shares of common stock comprising the stock portion was

calculated based on a price of $13.07 per share, which equaled the average of the volume weighted-average trading price per share

of our common stock on May 12, 13, and 14, 2021.

None of the $2.50 per share distribution represented a return of capital.

The distribution was paid

in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to all stockholders

was limited to approximately 50% of the total distribution to be paid to all stockholders.

As a result of stockholder elections,

the distribution consisted of 2,225,193 shares of common stock issued in lieu of cash, or approximately 8.4% of our outstanding shares

prior to the distribution, as well as cash of $29,599,164.

The number of shares of common stock comprising the stock portion was

calculated based on a price of $13.55 per share, which equaled the average of the volume weighted-average trading price per share

of our common stock on August 11, 12, and 13, 2021.

None of the $2.25 per share distribution represented a return of capital.

The distribution was paid

in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed to all stockholders

was limited to approximately 50% of the total distribution to be paid to all stockholders.

As a result of stockholder elections,

the distribution consisted of 2,170,807 shares of common stock issued in lieu of cash, or approximately 7.5% of our outstanding shares

prior to the distribution, as well as cash of $28,494,812.

The number of shares of common stock comprising the stock portion was

calculated based on a price of $13.39 per share, which equaled the average of the volume weighted-average trading price per share

of our common stock on November 11, 12, and 13, 2021.

None of the $2.00 per share distribution represented a return of capital.

(4) All of the $2,107,709

distribution paid on January 15, 2020 represented a distribution from realized gains.

None of the distribution represented a return

All of the $3,441,824 distribution

paid on April 15, 2022 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

(5) All of the $2,516,452

distribution paid on August 25, 2020 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

(6) All of the $5,071,326

distribution paid on October 20, 2020 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

(7) All of the $4,978,504

distribution paid on November 30, 2020 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

(8) All of the $4,381,084

distribution paid on January 15, 2021 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

(9) All of the $4,981,131

distribution paid on February 19, 2021 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

of the $6,051,304 distribution paid on April 15, 2021 represented a distribution from realized gains.

None of the distribution represented a return of capital.

(11) The distribution

was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed

to all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders.

of stockholder elections, the distribution consisted of 2,335,527 shares of common stock issued in lieu of cash, or approximately

9.6% of our outstanding shares prior to the distribution, as well as cash of $29,987,589.

The number of shares of common

stock comprising the stock portion was calculated based on a price of $13.07 per share, which equaled the average of the

volume weighted-average trading price per share of our common stock on May 12, 13, and 14, 2021.

None of the $2.50 per share

distribution represented a return of capital.

(12) The distribution

was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed

to all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders.

of stockholder elections, the distribution consisted of 2,225,193 shares of common stock issued in lieu of cash, or approximately

8.4% of our outstanding shares prior to the distribution, as well as cash of $29,599,164.

The number of shares of common

stock comprising the stock portion was calculated based on a price of $13.55 per share, which equaled the average of the

volume weighted-average trading price per share of our common stock on August 11, 12, and 13, 2021.

None of the $2.25 per

share distribution represented a return of capital.

(13) The distribution

was paid in cash or shares of our common stock at the election of stockholders, although the total amount of cash distributed

to all stockholders was limited to approximately 50% of the total distribution to be paid to all stockholders.

of stockholder elections, the distribution consisted of 2,170,807 shares of common stock issued in lieu of cash, or approximately

7.5% of our outstanding shares prior to the distribution, as well as cash of $28,494,812.

The number of shares of common

stock comprising the stock portion was calculated based on a price of $13.39 per share, which equaled the average of the

volume weighted-average trading price per share of our common stock on November 11, 12, and 13, 2021.

None of the $2.00

per share distribution represented a return of capital.

(14) All of the $23,338,915

distribution paid on January 14, 2022 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

(15) All of the $3,441,824

distribution paid on April 15, 2022 represented a distribution from realized gains.

None of the distribution represented

a return of capital.

(16) All of the $5,972,027 distribution paid on July 31, 2025 is expected to represent a distribution from realized gains, with no portion expected to represent a return of capital.

The final tax characterization will be determined as of December 31, 2025 and reported on Form 1099-DIV.

intend to focus on making equity investments from which we will derive primarily capital gains.

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Federal and State Income Taxes ” and “Note 9—Income Taxes” to our Consolidated Financial Statements as of

June 30, 2025 for more information.

September 30, 2025 for more information.

The Taxable Subsidiaries included in our Consolidated Financial Statements are subject to U.S.

income tax imposed at corporate rates on their income, regardless of whether we are taxed as a RIC.

The Taxable Subsidiaries are not

consolidated for U.S.

federal income tax purposes and may generate income tax expenses as a result of their ownership of the portfolio

federal income tax imposed at corporate rates on their income, regardless of whether we are taxed as a RIC.

The Taxable Subsidiaries

are not consolidated for U.S.

federal income tax purposes and may generate income tax expenses as a result of their ownership of the

portfolio companies.

Such income tax expenses and deferred taxes, if any, will be reflected in our Consolidated Financial Statements.

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Our estimates are inherently subjective in nature and actual results could differ materially from such estimates.

See “Note 2—Significant Accounting Policies” to our Condensed Consolidated Financial Statements as of June 30, 2025

See “Note 2—Significant Accounting Policies” to our Condensed Consolidated Financial Statements as of September 30,

2025 for further detail regarding our critical accounting policies and recently issued or adopted accounting pronouncements.

Related-Party

“Note 3—Related-Party Arrangements” to our Condensed Consolidated Financial Statements as of June 30, 2025 for more

refer to “Note 12—Subsequent Events” to our Condensed Consolidated Financial Statements as of June 30, 2025 for details

regarding activity in our investment portfolio from July 1, 2025 through August 6, 2025.

“Note 3—Related-Party Arrangements” to our Condensed Consolidated Financial Statements as of September 30, 2025 for

more information.

Repurchase Program

October 29, 2025, our Board of Directors authorized an extension of the Share Repurchase Program until the earlier of (i) October 31,

2026 or (ii) the repurchase of $64.3 million in aggregate amount of our common stock.

timing and number of shares to be repurchased pursuant to the Share Repurchase Program will depend on a number of factors, including

market conditions and alternative investment opportunities.

The Share Repurchase Program may be suspended, terminated or modified at

any time for any reason and does not obligate us to acquire any specific number of shares of its common stock.

Under the Share Repurchase

Program, we may repurchase our outstanding common stock in the open market, provided that we comply with the prohibitions under our insider

trading policies and procedures and the applicable provisions of the 1940 Act and the Exchange Act.

of November 5, 2025, the dollar value of shares that remained available to be purchased under the Share Repurchase Program was approximately

$25.0 million.

Notes Due 2026 - Note Repurchase Program

October 29, 2025, our Board of Directors approved an extension of the discretionary note repurchase program (the “Note

Repurchase Program”), which allows us to repurchase up to an additional $40.0 million or the remaining aggregate principal

amount, of our 6.00% Notes due 2026 through open market purchases, including block purchases, in such manner as will comply with the

provisions of the 1940 Act and the Exchange Act.

As of November 5, 2025, the dollar value of 6.00% Notes due 2026 that remained

available to be purchased under the Note Repurchase Program was approximately $39.7 million.

On November 3, 2025, the Company’s Board

of Directors declared a dividend of $0.25 per share payable on December 5, 2025 to the Company’s common stockholders of record as

of the close of business on November 21, 2025.

The dividend will be paid in cash.

refer to “Note 12—Subsequent Events” to our Condensed Consolidated Financial Statements as of September 30, 2025 for

details regarding activity in our investment portfolio from October 1, 2025 through November 5, 2025.

are frequently in negotiations with various private companies with respect to investments in such companies.

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the applicable closing conditions are satisfied, at which time the escrow accounts will close and such equity investments will be effectuated.

July 3, 2025, our Board of Directors declared a dividend of $0.25 per share payable on July 31, 2025 to our common stockholders of record

as of the close of business on July 21, 2025.

The dividend will be paid in cash.

Adjustment to Conversion

Rate of 6.50% Convertible Notes due 2029

as of July 21, 2025, the conversion rate applicable to the 6.50% Convertible Notes due 2029 was adjusted to $7.53 per share (132.7530

shares of our common stock per $1,000 principal amount of the 6.50% Convertible Notes due 2029) from the initial conversion price of

$7.75 per share (129.0323 shares of our common stock per $1,000 principal amount of the 6.50% Convertible Notes due 2029), which had

been effective since issuance.

The adjustment to the conversion rate of the 6.50% Convertible Notes due 2029 was made pursuant to the

Note Purchase Agreement governing the 6.50% Convertible Notes due 2029 as a result of our cash dividend of $0.25 per share, paid on July

31, 2025 to stockholders of record as of the close of business on July 21, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis