What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2025-11-06 · 344 added, 455 removed, 309 unchanged (72% of the section changed)

47 unchanged sentences

with the SEC.

we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove

to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate.

Important assumptions

include our ability to originate new investments, certain margins and levels of profitability and the availability of additional capital.

In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this quarterly report on Form

10-Q should not be regarded as a representation by us that our plans and objectives will be achieved.

These risks and uncertainties include

those described or identified in our quarterly reports on Form 10-Q and our annual report on Form 10-K in the “Risk Factors”

You should not place undue reliance on these forward-looking statements, which apply only as of the date of this quarterly

report on Form 10-Q.

The following analysis of our financial condition and results of operations should be read in conjunction with our

condensed consolidated financial statements and the related notes thereto contained elsewhere in this quarterly report on Form 10-Q.

we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could

prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate.

Important assumptions include our ability to originate new investments, certain margins and levels of profitability and the

availability of additional capital.

In light of these and other uncertainties, the inclusion of a projection or forward-looking

statement in this quarterly report on Form 10-Q should not be regarded as a representation by us that our plans and objectives will

These risks and uncertainties include those described or identified in our quarterly reports on Form 10-Q and our

annual report on Form 10-K in the “Risk Factors” sections.

You should not place undue reliance on these forward-looking

statements, which apply only as of the date of this quarterly report on Form 10-Q.

The following analysis of our financial condition

and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes

thereto contained elsewhere in this quarterly report on Form 10-Q.

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

14 unchanged sentences

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

portfolio companies,” and thus may not be considered “qualifying assets.” “Eligible portfolio companies”

generally include U.S.

companies that are not investment companies and that do not have securities listed on a national exchange.

at any time less than 70% of our gross assets are comprised of qualifying assets, including as a result of an increase in the value of

any non-qualifying assets or decrease in the value of any qualifying assets, we would generally not be permitted to acquire any additional

non-qualifying assets until such time as 70% of our then-current gross assets were comprised of qualifying assets.

We would not be required,

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.

across several key industry themes which may include, among others, Artificial Intelligence Infrastructure & Applications, Consumer

Goods & Services, Software-as-a-Service, Financial Technology & Services, and Logistics & Supply Chain.

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,

6 unchanged sentences

seek to create a low-turnover portfolio that includes investments in companies representing a broad range of investment themes.

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

portfolio companies,” and thus may not be considered “qualifying assets.” “Eligible portfolio companies”

generally include U.S.

companies that are not investment companies and that do not have securities listed on a national exchange.

at any time less than 70% of our gross assets are comprised of qualifying assets, including as a result of an increase in the value of

any non-qualifying assets or decrease in the value of any qualifying assets, we would generally not be permitted to acquire any additional

non-qualifying assets until such time as 70% of our then-current gross assets were comprised of qualifying assets.

We would not be required,

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

formed in 2010 as a Maryland corporation and operate as an internally managed, non-diversified closed-end management investment company.

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As an internally managed BDC, we

are managed by our employees, rather than the employees of an external investment adviser, thereby allowing for greater transparency

to stockholders through robust disclosure regarding our compensation structure.

As a result of the Internalization, we no longer pay

any fees or expenses under an investment advisory agreement or administration agreement, and instead pay the operating costs associated

with employing investment management professionals including, without limitation, compensation expenses related to salaries, discretionary

bonuses and restricted stock grants.

are managed by our employees, rather than the employees of an external investment adviser.

As a result of the Internalization, we no

longer pay any fees or expenses under an investment advisory agreement or administration agreement, and instead pay the operating costs

associated with employing investment management professionals including, without limitation, compensation expenses related to salaries,

discretionary bonuses and restricted stock grants.

and Investment Activity

Months Ended September 30, 2025

Months Ended March 31, 2026

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 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

The fair value as of March 31, 2026 of all of our portfolio investments was $388,534,651.

the three months ended March 31, 2026, we funded investments in an aggregate amount of $5,000,000 (not including capitalized transaction

costs) as shown in the following table:

Orchard Technologies, Inc.

Senior Preferred Shares, Series

Orchard Technologies, Inc.

Simple Agreement for Future Equity

Common Shares, Class A

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:

Opportunity 2025-4 LP (1)

Opportunity 2025-4 LP is an SPV for which the Class A Interest is invested in TensorWave Inc.

On December 31, 2025, SuRo Capital

committed up to $20.0 million to Magnetar Opportunity 2025-4 LP.

On January 2, 2026, SuRo Capital funded $5.0 million of the

Magnetar Opportunity 2025-4 LP does not charge a management fee but does charge an incentive fee of 20%, subject to an

annual 15% IRR hurdle rate.

As of March 31, 2026, $15.0 million of the commitment remains to be funded, subject to the satisfaction

of certain conditions

the three months ended March 31, 2026, we capitalized fees of $12,250.

the three months ended March 31, 2026, we exited or received proceeds from investments in the amount of $1,603,659, net of transaction costs, and realized a net gain on investments

of $890,513 as shown in the following table :

Net Share Price (1)

CoreWeave, Inc.

ServiceTitan, Inc.

CW Opportunity 2 LP (5)

Digital Holdings Inc.

- Warrants (6)

GrabAGun Digital

Holdings Inc.

- Common Shares (2)

True Global Ventures 4

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

fees on the sale(s), if applicable.

gain does not include adjustments to amounts held in escrow receivable.

of June 20, 2025, we had sold the entirety of our directly held CoreWeave, Inc.

public common

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

public common shares.

(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

of March 31, 2026, SuRo Capital held 599,754 remaining GrabAGun Digital Holdings Inc.

Months Ended March 31, 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 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

The fair value as of March 31, 2025 of all of our portfolio investments was $213,577,198.

the three months ended March 31, 2025, we funded investments in an aggregate amount of $1,303,010 (not including capitalized transaction

costs) as shown in the following table:

Supplying Demand, Inc.

(d/b/a Liquid

Preferred shares, Series F-1

Common shares

CW Opportunity 2 LP (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,

PSQ Holdings, Inc.

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

fees on the sale(s), if applicable.

gain/(loss) does not include adjustments to amounts held in escrow receivable.

of February 23, 2024, we had sold our remaining Nextdoor Holdings, Inc.

public common shares.

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

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.

Orchard Technologies, Inc.

Senior Preferred Shares, Series

Orchard Technologies, Inc.

Simple Agreement for Future Equity

Simple Agreement for

Future Equity

the three months ended March 31, 2025, we capitalized fees of $4,568.

the three months ended March 31, 2025, we did not exit or receive proceeds from any of our investments, and realized a net loss on investments

of $17,951 (including adjustments to amounts held in escrow receivable).

the three months ended March 31, 2025, we did not write-off any investments.

of Operations

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,

of the Three Months Ended March 31, 2026 and 2025

results for the three months ended March 31, 2026 and 2025:

Months Ended March 31,

Total Investment

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$ (3,661,769 )

$ (10,838,744 )

$ (10,086,400 )

Net realized gain/(loss) on investments

(13,713,512 )

(14,167,198 )

Realized loss on partial repurchase of 6.00%

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of investments

(13,769,932 )

Net Change in Net Assets

1 unchanged sentence

$ 155,636,060

$ (38,168,774 )

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), 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.

Investment income increased to $731,963 for the three months ended March

31, 2026 from $499,094 for the three months ended March 31, 2025.

The net increase between periods was primarily due to an increase in

interest income received on cash, 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.

Note, and an increase in dividend income from Treehouse Real Estate Investment Trust, Inc.

The increases were

offset by the cessation of dividend income from CW Opportunity 2 LP during the three months ended March 31, 2026, relative to the three months

ended March 31, 2025.

operating expenses increased to $4,710,455 for the three months ended March 31, 2026 from $4,160,863 for the three months ended

March 31, 2025.

The increase in operating expenses was primarily due to increases in compensation expense, professional fees, income

tax expense, directors’ fees, and other expenses.

These increases were partially offset by a decrease in interest expense during the

three months ended March 31, 2026, relative to the three months ended March 31, 2025.

Investment Loss

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

the three months ended March 31, 2026, we recognized a net investment loss of $3,978,492, compared to a net investment loss of $3,661,769

for the three months ended March 31, 2025.

The change between periods resulted from an increase in operating expenses, partially offset

by an increase in total investment income, during the three months ended March 31, 2026, relative to the three months ended March 31,

Realized Gain/Loss on Investments

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 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.”

the three months ended March 31, 2026, we recognized a net realized gain on our investments of $890,513, compared to a net realized loss

of $17,951 for the three months ended March 31, 2025.

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

the three months ended March 31, 2026 and 2025, excluding short-term U.S.

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

Change in Unrealized Appreciation/(Depreciation) of Investments

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.

GrabAGun Digital Holdings Inc.

the three months ended March 31, 2026, we had a net change in unrealized appreciation/(depreciation) of $158,724,039.

For the three months

ended March 31, 2025, we had a net change in unrealized appreciation/(depreciation) of $2,888,878.

The following table summarizes, by

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

ended March 31, 2026 and 2025.

Portfolio Company

Change in Unrealized Appreciation/(Depreciation) For the Quarter Ended

March 31, 2026

Change in Unrealized Appreciation/(Depreciation) For the Quarter Ended

March 31, 2025

$ 122,409,743

ARK Type One Deep Ventures Fund

Colombier Sponsor II LLC

ARK Type One Deep Ventures Fund LLC

EDGE Markets, Inc.

PSQ Holdings, Inc.

PublicSquare) (1)

(d/b/a PublicSquare)

Locus Robotics Corp.

HL Digital Assets Inc.

CW Opportunity 2 LP

Learneo, Inc.

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

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 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)

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.

Aventine Property Group, Inc.

Blink Health, Inc.

GrabAGun Digital Holdings Inc.

FourKites, Inc.

Shogun Enterprises, Inc.

(d/b/a Hearth)

ServiceTitan, Inc.

CW Opportunity 2 LP

Neutron Holdings, Inc.

(d/b/a/ Lime)

Varo Money, Inc.

PSQ Holdings, Inc.

(d/b/a PublicSquare)

Orchard Technologies, Inc.

Learneo, Inc.

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

Forge Global, Inc.

ServiceTitan, Inc.

StormWind, LLC

CoreWeave, Inc.

FourKites, Inc.

PSQ Holdings, Inc.

PublicSquare) (1)

Learneo, Inc.

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

(35,149,678 )

FourKites, Inc.

CW Opportunity 2 LP

$ 158,724,039

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 nine months ended September 30, 2025 and 2024.

was less than $1.0 million for the three months ended March 31, 2026 and 2025.

and Capital Resources

liquidity and capital resources are generated primarily from the sales of our investments and the net proceeds from public offerings

of our equity and debt securities, including pursuant to our continuous at-the-market offering of shares of our common stock as discussed

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 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.

liquidity and capital resources are generated primarily from the sales of our investments, recent private convertible debt issuances,

and the net proceeds from public offerings of our equity and debt securities, including pursuant to our continuous at-the-market offering

of shares of our common stock as discussed 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 $35.8 million remain outstanding as of March 31, 2026.

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 March 31, 2026.

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

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

For the three months

ended March 31, 2026 and 2025 our operating expenses, including interest payments on our debt obligations, were $4,710,455 and $4,160,863,

respectively.

of March 31, 2026, $35.8 million in aggregate principal of our 6.00% Notes due 2026 remained outstanding, with a maturity date of December

We have the right to redeem the 6.00% Notes due 2026, in whole or in part, at any time at a redemption price of 100%

of the outstanding principal amount plus accrued and unpaid interest.

We may also continue to repurchase the 6.00% Notes due 2026 in the

open market under the Note Repurchase Program, which was extended by our Board of Directors on October 29, 2025 and authorizes us to repurchase

up to the remaining aggregate principal amount of the 6.00% Notes due 2026.

We intend to satisfy our repayment obligation at maturity

primarily from existing cash balances, and we may also consider refinancing alternatives, including the issuance of new debt securities,

the sale of portfolio investments, or the issuance of equity under the ATM Program (under which approximately $87.9 million in aggregate

amount of shares remained available for sale as of March 31, 2026).

Any refinancing involving the incurrence of new indebtedness would

require five business days’ prior written notice to the holder of our 6.50% Convertible Notes due 2029 pursuant to the Notes Purchase

As of March 31, 2026, we held approximately $43.3 million in cash, which exceeds the outstanding principal amount of the 6.00%

Notes due 2026 and which we believe is sufficient to satisfy this obligation at maturity.

In addition, as of March 31, 2026, we held approximately

$2.7 million of unrestricted securities of publicly traded portfolio companies that could provide an additional source of liquidity.

will continue to evaluate our overall liquidity position and may take additional proactive steps, including the potential early redemption

or open-market repurchase of some or all of the outstanding 6.00% Notes due 2026, to manage this near-term maturity.

Cash Reserves

18 unchanged sentences

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

the three months ended March 31, 2026, cash decreased to $43,315,750 from $49,034,154 at the beginning of the year.

The decrease in

cash was primarily due to the purchase of new investments, payment of our operating expenses, and payment of interest on the

6.00% Notes due 2026 and 6.50% Convertible Notes due 2029.

The decrease was offset by the increase in cash from the sale of public securities and investment income received.

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 September 30, 2025 is as follows:

summary of our significant contractual payment obligations as of March 31, 2026 is as follows:

Due By Period (in millions)

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Operating lease liability

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 September 30, 2025 for more information.

the principal balance payable for the 6.00% Notes due 2026 as of March 31, 2026.

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

as of March 31, 2026 for more information.

the principal balance payable for the 6.50% Convertible Notes due 2029 as of March 31, 2026.

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

Statements as of March 31, 2026 for more information.

Repurchase Program

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 three months ended March 31, 2026, we did not repurchase any shares of our common stock under the discretionary open-market

Share Repurchase Program.

As of March 31, 2026, 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, 2026

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 September 30, 2025.

see “Note 5—Common Stock” to our Condensed Consolidated Financial Statements as of March 31, 2026.

Sheet Arrangements

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.

of March 31, 2026 and 2025, we had no off-balance sheet arrangements, including any risk management of commodity pricing or other hedging

However, we may employ hedging and other risk management techniques in the future.

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investment objective and strategy and for general corporate purposes.

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.

the three months ended March 31, 2026 and 2025, we did not issue or sell Shares under the ATM Program.

As of March 31, 2026,

up to approximately $87.9 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 March 31, 2026 for more

information regarding the ATM Program.

Notes due 2026 - Note Repurchase Program

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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 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

On 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.

During the year ended

December 31, 2025, the Company repurchased and retired $8.8 million of aggregate principal amount of the 6.00% Notes due 2026.

March 31, 2026, the aggregate principal dollar amount of 6.00% Notes due 2026 that remained available to be purchased under the Note

Repurchase Program was approximately $35.8 million.

to “Note 10—Debt Capital Activities” to our Condensed Consolidated Financial Statements as of March 31, 2026 for

more information regarding the 6.00% Notes due 2026.

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discounts and commissions.

Under the purchase agreement governing the 6.50% Convertible Notes due 2029 (the “Notes Purchase Agreement”),

upon mutual agreement between the Company and the Purchaser, we may issue additional 6.50% Convertible Notes due 2029 for sale in subsequent

offerings to the Purchaser (the “Additional Notes”), or issue additional notes with modified pricing terms (the “New

Notes”), in the aggregate for both the Additional Notes and the New Notes, up to a maximum of $50.0 million in one or more private

Pursuant to the Notes Purchase Agreement, on October 9, 2024, we issued $5.0 million of Additional Notes to the Purchaser,

and on January 16, 2025, we issued an additional $5.0 million of Additional Notes to the Purchaser, which Additional Notes are treated

as a single series with the initial issuance of the 6.50% Convertible Notes due 2029.

The 6.50% Convertible Notes due 2029 mature on

August 14, 2029, unless previously repurchased, redeemed or converted in accordance with their terms.

We do not have the right to redeem

the 6.50% Convertible Notes due 2029 prior to August 6, 2027.

Under the purchase agreement governing the 6.50% Convertible Notes due 2029, as Amended and Restated on December

12, 2025 (the “Notes Purchase Agreement”), upon mutual agreement between the Company and the Purchaser, we may issue additional

6.50% Convertible Notes due 2029 for sale in subsequent offerings to the Purchaser (the “Additional Notes”), or issue additional

notes with modified pricing terms (the “New Notes”), in the aggregate for both the Additional Notes and the New Notes, up

to a maximum of $50.0 million in one or more private offerings.

Pursuant to the Notes Purchase Agreement, on October 9, 2024, we issued

$5.0 million of Additional Notes to the Purchaser, and on January 16, 2025, we issued an additional $5.0 million of Additional Notes

to the Purchaser, which Additional Notes are treated as a single series with the initial issuance of the 6.50% Convertible Notes due

The 6.50% Convertible Notes due 2029 mature on August 14, 2029, unless previously repurchased, redeemed or converted in accordance

with their terms.

We do not have the right to redeem the 6.50% Convertible Notes due 2029 prior to August 6, 2027.

6.50% Convertible Notes due 2029 are convertible into shares of our common stock at the Purchaser’s sole discretion at an initial

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as provided in the Notes Purchase Agreement.

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.

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 Notes 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.

as of November 21, 2025, the conversion rate applicable to the 6.50% Convertible Notes due 2029 was adjusted to $7.32 per share (136.5633

shares of the Company’s common stock per $1,000 principal amount of the 6.50% Convertible Notes due 2029) from the most recent

conversion price of $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), which had been effective since July 21, 2025.

The adjustment to the conversion rate of the 6.50% Convertible Notes due

2029 was made pursuant to the Notes 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 December 5, 2025 to stockholders of record as of the close of business on November 21, 2025.

to “Note 10—Debt Capital Activities” and “Note 12—Subsequent Events” to our Condensed

Consolidated Financial Statements as of March 31, 2026 for more information regarding the 6.50% Convertible Notes due

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 September 30, 2025.

that we have declared since our formation through March 31, 2026.

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

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March 8, 2022 (15)

March 25, 2022

April 15, 2022

2 unchanged sentences

July 31, 2025

November 21, 2025

December 5, 2025

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

14 unchanged sentences

None of the 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 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.

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.

(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.

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.

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.

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.

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.

All of the $5,972,027 distribution

paid on July 31, 2025 represented a distribution from realized gains.

None of the distribution represented a return of capital.

All of the $6,281,422 distribution

paid on December 5, 2025 represented a distribution from realized gains.

None of the distribution represented a return of capital.

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

22 unchanged sentences

of a broker or financial intermediary should contact the broker or financial intermediary regarding any election to receive distributions

long as we qualify as a RIC, we generally will not be subject to U.S.

federal and state income taxes on any ordinary income or capital

gains that we distribute at least annually to our stockholders as dividends.

To the extent all our ordinary income and capital gains

are timely distributed to our stockholders as dividends, any tax liability related to income earned by the RIC will represent obligations

of our investors and will not be reflected in our consolidated financial statements.

So long as we qualify as a RIC, we generally will not be subject to U.S.

federal and state income taxes on any ordinary income or capital gains that we distribute at least annually to our stockholders as dividends.

To the extent all our ordinary income and capital gains are timely distributed to our stockholders as dividends, any tax liability related

to income earned by the RIC will represent obligations of our investors and will not be reflected in our Condensed Consolidated Financial

See “Note 2—Significant Accounting Policies— U.S.

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

September 30, 2025 for more information.

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

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.

Federal and State Income Taxes ” and “Note

9—Income Taxes” to our Condensed Consolidated Financial Statements as of March 31, 2026 for more information.

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

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

Condensed Consolidated Financial Statements .

Accounting Estimates and Policies

accounting policies and practices are the policies that are both most important to the portrayal of our financial condition and results,

and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about

the effects of matters that are inherently uncertain.

These include estimates of the fair value of our Level 3 investments and other

estimates that affect the reported amounts of assets and liabilities as of the date of the Condensed Consolidated Financial Statements

and the reported amounts of certain revenues and expenses during the reporting period.

It is likely that changes in these estimates will

occur in the near term.

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 September 30,

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

Critical accounting policies and practices are the policies that are both

most important to the portrayal of our financial condition and results, and require management’s most difficult, subjective, or

complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain.

These include

estimates of the fair value of our Level 3 investments and other estimates that affect the reported amounts of assets and liabilities

as of the date of the Condensed Consolidated Financial Statements and the reported amounts of certain revenues and expenses during the

reporting period.

It is likely that changes in these estimates will occur in the near term.

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 March 31, 2026 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 September 30, 2025 for

“Note 3—Related-Party Arrangements” to our Condensed Consolidated Financial Statements as of March 31, 2026 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.

refer to “Note 12—Subsequent Events” to our Condensed Consolidated Financial Statements as of March 31, 2026 for

details regarding activity in our investment portfolio from April 1, 2026 through May 5, 2026.

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

6 unchanged sentences

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

Externalization

April 2, 2026, our Board of Directors, including all of its independent directors, unanimously approved a proposal to transition us from

an internally managed BDC to an externally managed structure (the “Externalization”) and approved the related investment

advisory agreement (the “Advisory Agreement”) with Neostellar Advisors LLC (the “Adviser”), an entity jointly

owned by certain of our current employees and Magnetar Holdings LLC (“Magnetar”), pursuant to which the Adviser would be

appointed as our investment adviser.

Entry into the Advisory Agreement effectuating the Externalization is subject to approval by our

stockholders.

If our stockholders do not approve the Advisory Agreement, we will continue to operate as an internally managed BDC.

are not being sold, and if the Externalization is consummated, our stockholders immediately prior to the Externalization will be our

stockholders immediately following the Externalization and will hold the same number of shares of our common stock as they held prior

to the Externalization.

terms of the Externalization include:

(i) no incentive fee payable to the Adviser on realized gains attributable to our existing portfolio;

(ii) expected annual expense savings of approximately 0.77% of average total assets compared to the current internal management structure;

(iii) a $20 million capital commitment by Magnetar to invest in us, the form of which will depend on certain factors;

(iv) a base management

fee of 1.75% of our gross assets, which our Board of Directors determined to be competitive with fees charged by comparable BDCs and

below the median fee charged by private market venture and technology funds;

and (v) management continuity, with our current investment

team, including Mark D.

Klein and Allison Green, continuing in their current capacities, but as employees of the Adviser rather than

us following the Externalization.

Upon effectiveness of the Advisory Agreement, we also will enter into an administration agreement (the

“Administration Agreement”) with Neostellar Administrative Services LLC, an affiliate of the Adviser (the “Administrator”),

pursuant to which the Administrator will provide, or oversee the provision of, administrative services necessary for our operations,

subject to our reimbursement of the Administrator’s costs and expenses, including our allocable portion of overhead.

connection with the Externalization, on April 2, 2026, our Compensation Committee approved (a) a grant of 350,000 restricted shares (with

any aggregate income tax liability to be paid by us) to Mark D.

(b) a grant of 60,000 restricted shares (with any aggregate income

tax liability to be paid by us) to Allison Green;

and (d) a cash bonus of $500,000 to

Allison Green.

The foregoing compensation will be paid only if the Advisory Agreement is approved by our stockholders.

additional information regarding the Externalization and its impact on stockholders, the Advisory Agreement, the Administration Agreement,

Magnetar and the compensation of management relating to the Externalization, please refer to “Note 12—Subsequent Events”

to our Condensed Consolidated Financial Statements as of March 31, 2026 and to the Current Report on Form 8-K we filed on April 7, 2026.

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