What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-06 · 1064 added, 952 removed, 1593 unchanged (56% of the section changed)

3 unchanged sentences

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

March 31, 2026 (UNAUDITED)

June 30, 2026 (UNAUDITED)

December 31, 2025 (AUDITED)

5 unchanged sentences

Total Investments (cost of $ 262,840,450 and $ 240,825,785 , respectively)

Investments at fair value

Restricted cash

23 unchanged sentences

accompanying notes to condensed consolidated financial statements.

balance includes a right of use asset and corresponding operating lease liability, respectively.

Refer to “Note 7—Commitments

and Contingencies— Operating Leases and Related Deposits ” for more detail.

of March 31, 2026, the 6.00 %

Notes due December

30, 2026 (the “ 6.00 %

Notes due 2026”) (effective interest rate of 6.43 %)

had a face value of $ 35,829,825 .

As of December 31, 2025, the 6.00 %

Notes due 2026 (effective interest rate of 7.08 %)

had a face value of $ 35,829,825 .

Refer to “Note 10—Debt Capital Activities” for a reconciliation of the carrying value to the face value.

of March 31, 2026, the 6.50 %

Convertible Notes due August

14, 2029 (the “ 6.50 %

Convertible Notes due 2029”) (effective interest rate of 7.17 %)

had a face value of $ 35,000,000 .

As of December 31, 2025, the 6.50 %

Convertible Notes due 2029 (effective interest rate of 7.17 %)

(1) These balances include a right of use asset and corresponding operating lease liability, respectively.

Refer to “Note 7—Commitments and Contingencies— Operating Leases and

Related Deposits ” for more detail.

of June 30, 2026, the 6.00 % Notes due December 30, 2026 (the “ 6.00 % Notes due 2026”)

(effective interest rate of 6.43 %) had a face value of $ 35,829,825 .

As of December 31, 2025,

the 6.00 % Notes due 2026 (effective interest rate of 7.08 %) had a face value of $ 35,829,825 .

Refer to “Note 10—Debt Capital Activities” for a reconciliation of the

carrying value to the face value.

of June 30, 2026, the 6.50 % Convertible Notes due August 14, 2029 (the “ 6.50 % Convertible

Notes due 2029”) (effective interest rate of 8.06 %) had a face value of $ 27,000,000 .

As of December 31, 2025, the 6.50 % Convertible Notes due 2029 (effective interest rate of

7.17 %) had a face value of $ 35,000,000 .

Refer to “Note 10—Debt Capital Activities” for a reconciliation of the carrying value to the face

CAPITAL CORP.

AND SUBSIDIARIES

Refer to “Note 10—Debt Capital Activities”

for a reconciliation of the carrying value to the face value.

NEOSTELLAR CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

INVESTMENT INCOME

14 unchanged sentences

( 3,722,160 )

Realized Gain/(Loss) on Investments:

( 27,333,176 )

( 7,383,929 )

Realized Gain on Investments:

Non-controlled/non-affiliated investments

Net Realized Gain/(Loss) on Investments

Net Realized Gain on Investments

Realized loss on partial repurchase of 6.00 % Notes due December 30, 2026

3 unchanged sentences

Non-controlled/affiliate investments

( 1,269,022 )

Controlled investments

7 unchanged sentences

interest income earned on cash.

For the three months ended March 31, 2025, 4,516,131 potentially dilutive

common shares were excluded from the weighted-average common shares outstanding for diluted net change in net assets resulting from operations

per common share because the effect of these shares would have been anti-dilutive.

Refer to “Note 6 — Net Change in Net Assets

Resulting from Operations per Common Share — Basic and Diluted”.

the three months ended June 30, 2026,

4,192,642 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted

net change in net assets resulting from operations per common share because the effect of these shares would have been antidilutive.

Refer to “Note 6 — Net Change in Net Assets Resulting from Operations per Common Share — Basic and

CAPITAL CORP.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED )

Three Months Ended March 31,

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

Net Assets at Beginning of Year

16 unchanged sentences

$ 156,804,155

Change in Net Assets Resulting from Operations

Net investment loss

$ ( 23,354,684 )

$ ( 3,722,160 )

Net realized gain on investments

Net change in unrealized appreciation/(depreciation) of investments

Net Change in Net Assets Resulting from Operations

( 18,703,673 )

Change in Net Assets Resulting from Capital Transactions

Stock-based compensation

Shares repurchased for tax withholdings on vesting of employee equity awards

( 5,897,743 )

Conversion of 6.50% Convertible Notes due 2029

Net Change in Net Assets Resulting from Capital Transactions

Total Change in Net Assets

( 5,694,596 )

Net Assets at June 30

$ 355,856,986

$ 219,409,595

Ended June 30,

Capital Share Activity

1 unchanged sentence

Issuance of common stock under restricted stock plan, net (1)

Issuance of common stock from conversion of 6.50% Convertible Notes due 2029

Shares Outstanding at End of Period

1 unchanged sentence

to “Note 11 — Stock-Based Compensation” for more detail.

CAPITAL CORP.

AND SUBSIDIARIES

NEOSTELLAR CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

Months Ended June 30,

Cash Flows from Operating Activities

1 unchanged sentence

$ 136,932,387

Adjustments to reconcile net change in net assets resulting from operations to net cash (used in)/provided by operating activities:

Net realized gain on investments

( 5,940,033 )

Adjustments to reconcile net change in net assets resulting from operations to net cash used in operating activities:

Net realized (gain)/loss on investments

( 21,194,660 )

Net change in unrealized (appreciation)/depreciation of investments

19 unchanged sentences

Prepaid expenses and other assets

Net Cash Used in Operating Activities

( 5,756,728 )

Net Cash (Used in)/Provided by Operating Activities

( 29,847,309 )

7 unchanged sentences

Cash dividends paid

Cash paid for fractional shares

Shares repurchased for tax withholdings on vesting of employee equity awards

Net Cash Used in Financing Activities

Total Decrease in Cash Balance

( 6,284,846 )

Total (Decrease)/Increase in Cash Balance

( 36,132,155 )

4 unchanged sentences

Right of use asset obtained in exchange for operating lease liabilities

Conversion of 6.50% Convertible Notes due 2029

accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED )

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Portfolio Investments *

6 unchanged sentences

Fitness Technology

Type One Deep Ventures Fund LLC **(6)

ARK Type One Deep Ventures Fund LLC **(5)

Petersburg, FL

4 unchanged sentences

AI Infrastructure Fund

Magnetar Opportunity 2025-4 LP **(7)

Class A Interest **(7)

AI Infrastructure Fund

Class B Interest **(7)

AI Infrastructure Fund

Blink Health, Inc.

26 unchanged sentences

Lifestyle Beverage Brand

ClickHouse, Inc.

San Francisco, CA

Preferred Shares, Series A

Managed Database and Analytics

Shogun Enterprises, Inc.

13 unchanged sentences

Financial Technology Infrastructure

Magnetar Opportunity 2025-4 LP **(10)

Class A Interest **(10)

AI Infrastructure Fund

Neutron Holdings, Inc.

(d/b/a/ Lime)

San Francisco, CA

Junior Preferred Shares, Series 1-D

Micromobility

Junior Preferred Convertible Note 4% Due 5/11/2027 ***

Micromobility

Common Warrants, Strike Price $0.01, Expiration Date 5/11/2027

Micromobility

HL Digital Assets Inc.

Preferred Shares

Digital Asset Infrastructure

FourKites, Inc.

Common Shares

Supply Chain Technology

accompanying notes to condensed consolidated financial statements.

1 unchanged sentence

AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continue d

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued

Portfolio Investments *

Headquarters/

Portfolio Investments *

Headquarters/

FourKites, Inc.

Common Shares

Supply Chain Technology

EDGE Markets, Inc.

11 unchanged sentences

Venture Investment Fund

Xgroup Holdings Inc (d/b/a Xpoint) (11) (11)

Neutron Holdings, Inc.

San Francisco, CA

Junior Preferred Shares, Series 1-D

Micromobility

Junior Preferred Convertible Note 4% Due 5/11/2027 ***

Micromobility

Common Warrants, Strike Price $0.01, Expiration Date 5/11/2027

Micromobility

Xgroup Holdings Inc.

(d/b/a Xpoint) (10)

Miami Beach, FL

2 unchanged sentences

Series A-1 Warrants, Strike Price $0.0001, Expiration Date 5/14/2044 (10)

Geolocation Technology

Series A Warrants, Strike Price $0.0001, Expiration Date 5/14/2044 (10)

Geolocation Technology

Stake Trade, Inc.

(d/b/a Prophet Exchange) (10)

Preferred Shares, Series B-IV (10)

Sports Betting

GrabAGun Digital Holdings Inc.

3 unchanged sentences

E-Commerce Marketplace

Stake Trade, Inc.

(d/b/a Prophet Exchange) (11)

Preferred Shares, Series B-IV (11)

Sports Betting

Varo Money, Inc.

San Francisco, CA

7 unchanged sentences

Online Education

Huntress Labs Inc.

Common Shares

Cybersecurity

Orchard Technologies, Inc.

Preferred Shares, Series D 8%

Real Estate Platform

Senior Preferred Shares, Series 2 8%

Estate Platform

Senior Preferred Shares, Series 1 7%

Estate Platform

Common Shares (13)

Estate Platform

Simple Agreement for Future Equity

Estate Platform

New York, NY Real Estate Platform

Preferred Shares, Series E-1 (13)

PSQ Holdings, Inc.

10 unchanged sentences

Social Data Platform

Singapore, Singapore

Common Shares **

Retail Technology

Preferred Shares, Investec Series **

accompanying notes to condensed consolidated financial statements.

1 unchanged sentence

AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued

Portfolio Investments *

Headquarters/

Portfolio Investments*

Headquarters/

Singapore, Singapore

Common Shares **

Retail Technology

Preferred Shares, Investec Series **

Retail Technology

Fullbridge, Inc.

3 unchanged sentences

Promissory Note 1.47%, Due 11/9/2021 (3)(14)

Business Education

Treehouse Real Estate Investment Trust, Inc.

7 unchanged sentences

Preferred Shares, Series C-3 (15)

Carbon Credit Services

Total Non-Controlled/Non-Affiliate

35 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continue d

portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise identified.

As of March 31, 2026,

all of the Company’s investments were non-controlled.

Equity investments may be subject to lock-up restrictions upon their

initial public offering (“IPO”).

Preferred dividends are generally only payable when declared and paid by the portfolio

company’s board of directors.

SuRo Capital Corp.’s (the “Company’s”, or “SuRo Capital’s”)

directors, officers, employees and staff, as applicable, may serve on the board of directors of the Company’s portfolio investments.

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued

portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise

As of June 30, 2026, all of the Company’s investments were non-controlled.

Equity investments may be subject to lock-up restrictions upon their initial public offering

Preferred dividends are generally only payable when declared and paid

by the portfolio company’s board of directors.

Neostellar Capital Corp.’s (the

“Company’s”, or “Neostellar Capital’s”) directors, officers,

employees and staff, as applicable, may serve on the board of directors of the Company’s

portfolio investments.

(Refer to “Note 3—Related-Party Arrangements”).

All portfolio investments are considered Level 3 and valued using

significant unobservable inputs, unless otherwise noted.

All portfolio investments are considered Level 3 and valued using significant unobservable

inputs, unless otherwise noted.

(Refer to “Note 4—Investments at Fair Value”).

the Company’s portfolio investments are restricted as to resale, unless otherwise noted, and were valued at fair value as determined

in good faith by the Company’s Board of Directors.

All of the Company’s portfolio investments are restricted as to resale, unless otherwise

noted, and were valued at fair value as determined in good faith by the Company’s Board

of Directors.

(Refer to “Note 2—Significant Accounting Policies— Investments

at Fair Value ”).

assets that SuRo Capital Corp.

believes do not represent “qualifying assets” under Section 55(a) of the Investment Company

Act of 1940, as amended (the “1940 Act”).

Of the Company’s total investments as of March 31, 2026, 30.12 % of its

total investments are non-qualifying assets, excluding cash and short-term US treasuries.

assets that Neostellar Capital Corp.

believes do not represent “qualifying assets”

under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”).

Of the Company’s total investments as of June 30, 2026, 32.73 % of its total investments

are non-qualifying assets, excluding cash and short-term US treasuries.

*** Investment

is income-producing.

Investments” are investments in those companies that are “Affiliated Companies” of SuRo Capital, as defined in

the 1940 Act.

In general, a company is deemed to be an “Affiliate” of SuRo Capital if SuRo Capital beneficially owns,

(1) “Affiliate

Investments” are investments in those companies that are “Affiliated Companies”

of Neostellar Capital, as defined in the 1940 Act.

In general, a company is deemed to be

an “Affiliate” of Neostellar Capital if Neostellar Capital beneficially owns,

directly or indirectly, between 5% and 25% of the voting securities ( i.e.

, securities with the right to elect directors) of

such company.

For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer

to “Note 4—Investments at Fair Value”.

the respective number of shares, principal amount, initial or remaining fund investment, or membership interest as of March 31, 2026.

For fund investments, the initial committed amount may be reduced by distributions classified as Return of Capital.

of March 31, 2026, the investments noted had been placed on non-accrual status.

with the right to elect directors) of such company.

For the Schedule of Investments In, and

Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note

4—Investments at Fair Value”.

(2) Represents

the respective number of shares, principal amount, initial or remaining fund investment,

or membership interest as of June 30, 2026.

For fund investments, the initial committed amount

may be reduced by distributions classified as Return of Capital.

of June 30, 2026, the investments noted had been placed on non-accrual status.

an investment considered Level 1 or Level 2 and valued using observable inputs.

Refer to “Note 4—Investments at Fair

March 31, 2026, Whoop, Inc.

announced completion of its Series G financing.

As a result of the financing, on February 26, 2026, the

Simple Agreement for Future Equity (“SAFE”) Note which SuRo Capital previously held in Whoop, Inc.

converted into Series

G-2 Preferred shares.

Type One Deep Ventures Fund LLC is an investment fund for which the Class A Interest is solely invested in the Series A-2 Preferred

Shares of OpenAI Global, LLC.

SuRo Capital Corp.

is invested in the Series A-2 Preferred Shares of OpenAI Global, LLC through its

investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC.

ARK Type One Deep Ventures Fund LLC charges a 1 % management

fee per year, and an incentive fee of 10 %, not subject to a hurdle rate.

The management fees will adjust the cost of SuRo Capital’s

investment in the fund.

LLC’s sole portfolio asset is interest in the Series B Preferred Shares of VAST Data, Ltd.

through an special purpose vehicle (“SPV”).

SuRo Capital is

invested in the Series B Preferred Shares of VAST Data, Ltd.

through its investment in the Membership Interest of IH10, LLC.

LLC does not charge a management fee or an incentive fee;

however, SuRo Capital has prepaid operating expenses.

Opportunity 2 LP is an SPV for which the Class A Interest is solely invested in the Class A Common

Shares of CoreWeave, Inc.

SuRo Capital is invested in the Class A Common Shares of CoreWeave, Inc.

through its investment in the Class

A Interest of CW Opportunity 2 LP.

CW Opportunity 2 LP does not charge a management fee but does charge an incentive fee of 20 %,

“Note 4—Investments at Fair Value”.

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

invested in the Series A-2 Preferred Shares of OpenAI Global, LLC.

Neostellar Capital Corp.

is invested in the Series A-2 Preferred Shares of OpenAI Global, LLC through its investment

in the Class A Interest of ARK Type One Deep Ventures Fund LLC.

ARK Type One Deep Ventures

Fund LLC charges a 1 % management fee per year, and an incentive fee of 10%, not subject to

a hurdle rate.

The management fees will adjust the cost of Neostellar Capital’s investment

LLC’s sole portfolio asset is interest in the Series B Preferred Shares of VAST Data,

through a special purpose vehicle (“SPV”).

Neostellar Capital is invested

in the Series B Preferred Shares of VAST Data, Ltd.

through its investment in the Membership

Interest of IH10, LLC.

IH10, LLC does not charge a management fee or an incentive fee;

Neostellar Capital has prepaid operating expenses.

Opportunity 2025-4 LP is an SPV for which the Class A Interest and Class B Interest are invested in the Class B Preferred Shares of

TensorWave Inc.

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.

SuRo Capital did not receive any distributions during the quarter ended March 31, 2026 as part of its investment in

CW Opportunity 2 LP.

As of March 31, 2026, SuRo Capital retains approximately 68.1 %

of its investment in CW Opportunity 2, LP.

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.

1789 Capital Nirvana II LP is a wholly owned subsidiary of SuRo Capital.

SuRo Capital paid

a 7 % origination fee at the time of investment.

Opportunity 2 LP is an SPV for which the Class A Interest is solely invested in the Class

A Common Shares of CoreWeave, Inc.

Neostellar Capital is invested in the Class A Common Shares

of CoreWeave, Inc.

through its investment in the Class A Interest of CW Opportunity 2 LP.

CW Opportunity 2 LP does not charge a management fee but does charge an incentive fee of

20 %, subject to an annual 15 % IRR hurdle rate.

During the quarter ended June 30, 2026, Neostellar

Capital received distributions as part of its investment in CW Opportunity 2 LP.

The distributions

represented approximately 12.2 % of the initial investment in CW Opportunity 2 LP.

30, 2026, Neostellar Capital retains approximately 55.9 % of its investment in CW Opportunity

CAPITAL CORP.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continue d

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 commitment.

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.

Capital’s investments in Commercial Streaming Solutions Inc.

(d/b/a BettorView), EDGE Markets, Inc., Xgroup Holdings Limited

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued

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

was made through 1789 Capital Nirvana II LP, an SPV in which Neostellar Capital is the Sole Limited Partner.

1789 Capital Nirvana II LP is a wholly owned subsidiary of Neostellar Capital.

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

Neostellar Capital’s investments in Commercial Streaming Solutions Inc.

(d/b/a BettorView), EDGE Markets, Inc., Xgroup Holdings Inc.

(d/b/a Xpoint), and Stake Trade, Inc.

(d/b/a Prophet Exchange) are held through SuRo Capital’s wholly owned subsidiary, SuRo

Capital Sports, LLC (“SuRo Capital Sports”).

Capital’s investments in True Global Ventures 4 Plus Pte Ltd are held through SuRo Capital’s wholly owned subsidiary,

GSVC SVDS Holdings, Inc.

True Global Ventures 4 Plus Pte Ltd charges a 1.8 % management fee and a 22.5 % incentive fee, subject to

an annual 5 % IRR hurdle rate.

The management fees may adjust the cost of SuRo Capital’s investment in the fund.

Capital’s investment in Residential Homes for Rent, LLC (d/b/a Second Avenue) is held through SuRo Capital’s wholly owned

subsidiary, GSVC AV Holdings, Inc.

November 9, 2021, Fullbridge, Inc.’s obligations under its financing arrangements with the Company became past due.

(d/b/a Prophet Exchange) are held through Neostellar Capital’s wholly owned subsidiary, SuRo Capital Sports, LLC (“SuRo Capital Sports”).

(11) Neostellar

Capital’s investments in True Global Ventures 4 Plus Pte Ltd are held through Neostellar

Capital’s wholly owned subsidiary, GSVC SVDS Holdings, Inc.

True Global Ventures 4

Plus Pte Ltd charges a 1.8 % management fee and a 22.5 % incentive fee, subject to an annual

5 % IRR hurdle rate.

The management fees may adjust the cost of Neostellar Capital’s

investment in the fund.

(12) Neostellar

Capital’s investment in Residential Homes for Rent, LLC (d/b/a Second Avenue) is held

through Neostellar Capital’s wholly owned subsidiary, GSVC AV Holdings, Inc.

January 27, 2026, the Simple Agreement for Future Equity (“SAFE”) Note previously

held by the Company in Orchard Technologies, Inc.

converted into Series E-1 Preferred Shares.

In connection with the same transaction, the Company’s previously held Series D Preferred

Shares, Series 1 Senior Preferred Shares, and Series 2 Senior Preferred Shares were converted

into Common Shares.

November 9, 2021, Fullbridge, Inc.’s obligations under its financing arrangements with

the Company became past due.

March 30, 2025, CTN Holdings, Inc.

(d/b/a Catona Climate) filed for Chapter 11 protection in the U.S.

Bankruptcy Court for the District

On June 5, 2025, the US Bankruptcy Court for the District of Delaware approved the sale of the remaining assets of CTN

Holdings, Inc.

(d/b/a Catona Climate) filed for Chapter 11 protection

Bankruptcy Court for the District of Delaware.

On June 5, 2025, the US Bankruptcy

Court for the District of Delaware approved the sale of the remaining assets of CTN Holdings,

On August 7, 2025, CTN Holdings, Inc.

(d/b/a Catona Climate) converted its bankruptcy filing from Chapter 11 reorganization

to Chapter 7 liquidation.

Capital’s investments in StormWind, LLC are held through SuRo Capital’s wholly owned subsidiary, GSVC SW Holdings, Inc.

(d/b/a Catona Climate) converted its bankruptcy

filing from Chapter 11 reorganization to Chapter 7 liquidation.

(16) Neostellar

Capital’s investments in StormWind, LLC are held through Neostellar Capital’s

wholly owned subsidiary, GSVC SW Holdings, Inc.

CAPITAL CORP.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED

SCHEDULE OF INVESTMENTS

CONSOLIDATED SCHEDULE OF INVESTMENTS

Portfolio Investments *

Headquarters/

Portfolio Investments*

Headquarters/

NON-CONTROLLED/NON-AFFILIATE

36 unchanged sentences

Lifestyle Beverage Brand

Series F Convertible Note 4.12%, Due 7/15/2030 ***

F Convertible Note 4.12%, Due 7/15/2030 ***

Lifestyle Beverage Brand

15 unchanged sentences

Neutron Holdings, Inc.

(d/b/a/ Lime)

San Francisco, CA

16 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS - continue d

CONSOLIDATED SCHEDULE OF INVESTMENTS - continued

Portfolio Investments*

12 unchanged sentences

Digital Asset Infrastructure

Xgroup Holdings Inc (d/b/a Xpoint) (11) (11)

Xgroup Holdings Inc.

(d/b/a Xpoint) (11)

Miami Beach, FL

68 unchanged sentences

Business Education

Promissory Note 1.47%, Due 11/9/2021 (3)(15)

Note 1.47%, Due 11/9/2021 (3)(15)

Business Education

Treehouse Real Estate Investment Trust, Inc.

14 unchanged sentences

Preferred Shares, Series A 8%

Total (1)(16)

Interactive Learning

Commercial Streaming Solutions Inc.

19 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED

SCHEDULE OF INVESTMENTS - continued

portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise identified.

As of December 31, 2025,

all of the Company’s investments were non-controlled.

Equity investments may be subject to lock-up restrictions upon their

initial public offering (“IPO”).

Preferred dividends are generally only payable when declared and paid by the portfolio

company’s board of directors.

SuRo Capital Corp.’s (the “Company’s”, or “SuRo Capital’s”)

directors, officers, employees and staff, as applicable, may serve on the board of directors of the Company’s portfolio investments.

CONSOLIDATED SCHEDULE OF INVESTMENTS - continued

portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise

As of December 31, 2025, all of the Company’s investments were non-controlled.

Equity investments may be subject to lock-up restrictions upon their initial public offering

Preferred dividends are generally only payable when declared and paid

by the portfolio company’s board of directors.

Neostellar Capital Corp.’s (the

“Company’s”, or “Neostellar Capital’s”) directors, officers,

employees and staff, as applicable, may serve on the board of directors of the Company’s

portfolio investments.

(Refer to “Note 3—Related-Party Arrangements”).

All portfolio investments are considered Level 3 and valued using

significant unobservable inputs, unless otherwise noted.

All portfolio investments are considered Level 3 and valued using significant unobservable

inputs, unless otherwise noted.

(Refer to “Note 4—Investments at Fair Value”).

the Company’s portfolio investments are restricted as to resale, unless otherwise noted, and were valued at fair value as determined

in good faith by the Company’s Board of Directors.

All of the Company’s portfolio investments are restricted as to resale, unless otherwise

noted, and were valued at fair value as determined in good faith by the Company’s Board

of Directors.

(Refer to “Note 2—Significant Accounting Policies— Investments

at Fair Value ”).

assets that SuRo Capital Corp.

believes do not represent “qualifying assets” under Section 55(a) of the Investment Company

Act of 1940, as amended (the “1940 Act”).

Of the Company’s total investments as of December 31, 2025, 32.70 % of

its total investments are non-qualifying assets, excluding cash and short-term US treasuries.

assets that Neostellar Capital Corp.

believes do not represent “qualifying assets”

under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”).

Of the Company’s total investments as of December 31, 2025, 32.70 % of its total investments

are non-qualifying assets, excluding cash and short-term US treasuries.

*** Investment

is income-producing.

Investments” are investments in those companies that are “Affiliated Companies” of SuRo Capital, as defined in

the 1940 Act.

In general, a company is deemed to be an “Affiliate” of SuRo Capital if SuRo Capital beneficially owns,

(1) “Affiliate

Investments” are investments in those companies that are “Affiliated Companies”

of Neostellar Capital, as defined in the 1940 Act.

In general, a company is deemed to be

an “Affiliate” of Neostellar Capital if Neostellar Capital beneficially owns,

directly or indirectly, between 5% and 25% of the voting securities ( i.e.

, securities with the right to elect directors) of

such company.

For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer

to “Note 4—Investments at Fair Value”.

the respective number of shares, principal amount, initial or remaining fund investment, or membership interest as of December 31,

For fund investments, the initial committed amount may be reduced by distributions classified as Return of Capital.

with the right to elect directors) of such company.

For the Schedule of Investments In, and

Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note

4—Investments at Fair Value”.

(2) Represents

the respective number of shares, principal amount, initial or remaining fund investment,

or membership interest as of December 31, 2025.

For fund investments, the initial committed

amount may be reduced by distributions classified as Return of Capital.

of December 31, 2025, the investments noted had been placed on non-accrual status.

an investment considered Level 1 or Level 2 and valued using observable inputs.

Refer to “Note 4—Investments at Fair

Type One Deep Ventures Fund LLC is an investment fund for which the Class A Interest is solely invested in the Series A-2 Preferred

Shares of OpenAI Global, LLC.

SuRo Capital Corp.

is invested in the Series A-2 Preferred Shares of OpenAI Global, LLC through its

investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC.

ARK Type One Deep Ventures Fund LLC charges a 1 % management

fee per year, and an incentive fee of 10 %, not subject to a hurdle rate.

The management fees will adjust the cost of SuRo Capital’s

investment in the fund.

Opportunity 2 LP is a special purpose vehicle (“SPV”) for which the Class A Interest is solely invested in the Class

A Common Shares of CoreWeave, Inc.

SuRo Capital is invested in the Class A Common Shares of CoreWeave, Inc.

“Note 4—Investments at Fair Value”.

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

invested in the Series A-2 Preferred Shares of OpenAI Global, LLC.

Neostellar Capital Corp.

is invested in the Series A-2 Preferred Shares of OpenAI Global, LLC through its investment

in the Class A Interest of ARK Type One Deep Ventures Fund LLC.

ARK Type One Deep Ventures

Fund LLC charges a 1 % management fee per year, and an incentive fee of 10 %, not subject to

a hurdle rate.

The management fees will adjust the cost of Neostellar Capital’s investment

Opportunity 2 LP is a special purpose vehicle (“SPV”) for which the Class A Interest

is solely invested in the Class A Common Shares of CoreWeave, Inc.

Neostellar Capital is

invested in the Class A Common Shares of CoreWeave, Inc.

through its investment in the Class

A Interest of CW Opportunity 2 LP.

On March 28, 2025, CoreWeave, Inc.

completed an IPO and

the Series C Preferred Shares converted to Class A Common Shares.

Prior to the IPO, Neostellar

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

through its investment

in the Class A Interest of CW Opportunity 2 LP.

On March 28, 2025, CoreWeave, Inc.

completed an IPO and the Series C Preferred Shares

converted to Class A Common Shares.

Prior to the IPO, SuRo Capital was invested in the Series C Preferred Shares of CoreWeave, Inc.

through its investment in the Class A Interest of CW Opportunity 2 LP.

Additionally, prior to the IPO, the Series C Preferred Shares

of CoreWeave, Inc.

accrued a 10 % per annum dividend, paid quarterly in cash or in-kind.

CW Opportunity 2 LP does not charge a management

fee but does charge an incentive fee of 20 %, subject to an annual 15 % IRR hurdle rate.

During the year ended December 31, 2025, SuRo

Capital received distributions as part of its investment in CW Opportunity 2 LP.

The distributions represented approximately 31.9 %

of the initial investment in CW Opportunity 2, LP.

As of December 31, 2025, SuRo Capital retains approximately 68.1 % of its investment

Additionally, prior to the IPO, the Series

C Preferred Shares of CoreWeave, Inc.

accrued a 10 % per annum dividend, paid quarterly in

cash or in-kind.

CW Opportunity 2 LP does not charge a management fee but does charge an

incentive fee of 20 %, subject to an annual 15 % IRR hurdle rate.

During the year ended December

31, 2025, Neostellar Capital received distributions as part of its investment in CW Opportunity

The distributions represented approximately 31.9 % of the initial investment in CW Opportunity

As of December 31, 2025, Neostellar Capital retains approximately 68.1 % of its investment

in CW Opportunity 2 LP.

LLC’s sole portfolio asset is interest in the Series B Preferred Shares of VAST Data, Ltd.

LLC’s sole portfolio asset is interest in the Series B Preferred Shares of VAST Data,

through an SPV.

SuRo Capital is

invested in the Series B Preferred Shares of VAST Data, Ltd.

Neostellar Capital is invested in the Series B Preferred Shares of VAST

through its investment in the Membership Interest of IH10, LLC.

LLC does not charge a management fee or an incentive fee;

however, SuRo Capital has prepaid operating expenses.

IH10, LLC does

not charge a management fee or an incentive fee;

however, Neostellar Capital has prepaid

operating expenses.

(8) Neostellar

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.

1789 Capital Nirvana II LP is a wholly owned subsidiary of SuRo Capital.

SuRo Capital paid

a 7 % origination fee at the time of investment.

was made through 1789

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

Capital Nirvana II LP is a wholly owned subsidiary of Neostellar Capital.

Neostellar Capital

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

CAPITAL CORP.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED

SCHEDULE OF INVESTMENTS - continued

July 15, 2025, Colombier Acquisition Corp.

II (“Colombier”) stockholders approved a business combination with GrabAGun

Digital Holdings Inc.

CONSOLIDATED SCHEDULE OF INVESTMENTS - continued

On July 15, 2025, Colombier Acquisition Corp.

II (“Colombier”) stockholders approved a business combination with GrabAGun Digital Holdings Inc.

and related proposals at a special meeting.

On July 16, 2025, GrabAGun Digital Holdings, Inc.

announced that

it had consummated the business combination with Colombier pursuant to a merger agreement between the parties, creating the resultant

combined company GrabAGun Digital Holdings, Inc.

As of December 31, 2025, SuRo Capital’s shares of GrabAGun Digital Holdings,

announced that it had consummated the business combination with Colombier pursuant to a merger agreement between the parties, creating the resultant combined company GrabAGun Digital Holdings, Inc.

As of December 31, 2025, Neostellar Capital’s shares of GrabAGun Digital Holdings, Inc.

Common shares are subject to certain restrictions on transfer, while the GrabAGun Digital Holdings, Inc.

warrants are freely

Capital’s investments in True Global Ventures 4 Plus Pte Ltd are held through SuRo Capital’s wholly owned subsidiary,

GSVC SVDS Holdings, Inc.

True Global Ventures 4 Plus Pte Ltd charges a 1.8 % management fee and a 22.5 % incentive fee, subject to

an annual 5 % IRR hurdle rate.

The management fees may adjust the cost of SuRo Capital’s investment in the fund.

warrants are freely tradable.

Neostellar Capital’s investments in True Global Ventures 4 Plus Pte Ltd are held through Neostellar Capital’s wholly owned subsidiary, GSVC SVDS Holdings, Inc.

True Global Ventures 4 Plus Pte Ltd charges a 1.8 % management fee and a 22.5 % incentive fee, subject to an annual 5 % IRR hurdle rate.

The management fees may adjust the cost of Neostellar Capital’s investment in the fund.

(11) Neostellar

Capital’s investments in Commercial Streaming Solutions Inc.

(d/b/a BettorView), EDGE Markets, Inc., Xgroup Holdings Limited

(d/b/a BettorView), EDGE

Markets, Inc., Xgroup Holdings Inc.

(d/b/a Xpoint), and Stake Trade, Inc.

(d/b/a Prophet Exchange) are held through SuRo Capital’s wholly owned subsidiary, SuRo

Capital Sports, LLC (“SuRo Capital Sports”).

(d/b/a Prophet

Exchange) are held through Neostellar Capital’s wholly owned subsidiary, SuRo Capital

Sports, LLC (“SuRo Capital Sports”).

October 8, 2025, Stake Trade, Inc.

(d/b/a Prophet Exchange) completed its Series B financing.

As a result of the financing, the SAFE

Note which SuRo Capital previously held in Stake Trade, Inc.

As a result of the financing, the SAFE Note which Neostellar Capital previously held in Stake

(d/b/a Prophet Exchange) converted into Series B-IV Preferred shares.

Capital’s investment in Residential Homes for Rent, LLC (d/b/a Second Avenue) is held through SuRo Capital’s wholly owned

subsidiary, GSVC AV Holdings, Inc.

(13) Neostellar

Capital’s investment in Residential Homes for Rent, LLC (d/b/a Second Avenue) is held

through Neostellar Capital’s wholly owned subsidiary, GSVC AV Holdings, Inc.

March 30, 2025, CTN Holdings, Inc.

(d/b/a Catona Climate) filed for Chapter 11 protection in the U.S.

Bankruptcy Court for the District

On June 5, 2025, the US Bankruptcy Court for the District of Delaware approved the sale of the remaining assets of CTN

Holdings, Inc.

(d/b/a Catona Climate) filed for Chapter 11 protection

Bankruptcy Court for the District of Delaware.

On June 5, 2025, the US Bankruptcy

Court for the District of Delaware approved the sale of the remaining assets of CTN Holdings,

On August 7, 2025, CTN Holdings, Inc.

(d/b/a Catona Climate) converted its bankruptcy filing from Chapter 11 reorganization

to Chapter 7 liquidation.

November 9, 2021, Fullbridge, Inc.’s obligations under its financing arrangements with the Company became past due.

Capital’s investments in StormWind, LLC are held through SuRo Capital’s wholly owned subsidiary, GSVC SW Holdings, Inc.

(d/b/a Catona Climate) converted its bankruptcy

filing from Chapter 11 reorganization to Chapter 7 liquidation.

November 9, 2021, Fullbridge, Inc.’s obligations under its financing arrangements with

the Company became past due.

(16) Neostellar

Capital’s investments in StormWind, LLC are held through Neostellar Capital’s

wholly owned subsidiary, GSVC SW Holdings, Inc.

March 21, 2025, Commercial Streaming Solutions, Inc.

(d/b/a BettorView) merged with FSG Digital, Inc.

(d/b/a BettorView) merged with FSG Digital,

(d/b/a JefeBet).

of the merger, the SAFE Note which SuRo Capital previously held in Commercial Streaming Solutions, Inc.

(d/b/a BettorView) converted

into Class A-1 Preferred shares.

As a result of the merger, the SAFE Note which Neostellar Capital previously

held in Commercial Streaming Solutions, Inc.

(d/b/a BettorView) converted into Class A-1

Preferred shares.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1— NATURE OF OPERATIONS

Capital Corp.

(“we”, “us”, “our”, the “Company” or “SuRo Capital”), formerly

known as Sutter Rock Capital Corp.

and GSV Capital Corp.

and formed in September 2010 as a Maryland corporation, is an internally managed,

non-diversified closed-end management investment company.

The Company 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

(“we”, “us”, “our”, the “Company” or “Neostellar Capital”),

formerly known as SuRo Capital Corp., Sutter Rock Capital Corp.

and GSV Capital Corp., was formed in September 2010 as a Maryland corporation.

As of June 30, 2026, the Company was an internally managed, non-diversified closed-end management investment company.

The Company 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”).

Company’s date of inception was January 6, 2011, which is the date it commenced development stage activities.

The Company’s

common stock is currently listed on the Nasdaq Global Select Market under the symbol “SSSS” (formerly “GSVC”).

common stock is listed on the Nasdaq Global Select Market under the symbol “NSLR” (formerly “SSSS”

and, prior to that, “GSVC”).

The Company began its investment operations during the second quarter of 2011.

table below displays the Company’s subsidiaries as of March 31, 2026, which, other than GSV Capital Lending, LLC (“GCL”),

Effective July

15, 2026, in connection with the Externalization, the Company became externally managed by Neostellar Advisors LLC.

12—Subsequent Events—Externalization.”

table below displays the Company’s subsidiaries as of June 30, 2026, which, other than GSV Capital Lending, LLC (“GCL”),

SuRo Capital Sports, LLC, 1789 Capital Nirvana II LP, and SRCI Advisors, LLC, are collectively referred to as the “Taxable Subsidiaries.”

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In the opinion of management, all adjustments, all of which were of a normal recurring nature, were considered

necessary for the fair presentation of Condensed Consolidated Financial Statements for the period and have been included.

necessary for the fair presentation of the Condensed Consolidated Financial Statements for the period and have been

of Consolidation

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purposes where the Company holds a 100% interest.

Company’s Condensed Consolidated Financial Statements include its accounts and the accounts of the Taxable Subsidiaries, GCL,

SuRo Capital Sports, 1789 Capital Nirvana II LP, and SRCI Advisors, LLC, its wholly owned subsidiaries.

GCL was formed to originate

portfolio loan investments within the state of California.

SuRo Capital Sports was formed to focus on investing in the sports

betting sector.

1789 Capital Nirvana II LP is a SPV in which SuRo Capital holds the sole limited partnership interest and was formed

to invest in the Common Shares of Plaid, Inc.

SRCI Advisors, LLC was formed to provide investment management services to third

as of March 31, 2026, SRCI Advisors has not commenced operations.

All intercompany balances and transactions have been

eliminated in consolidation.

The Company operates as a single operating segment.

Company’s Condensed Consolidated Financial Statements include its accounts and the accounts of the Taxable Subsidiaries, GCL, SuRo

Capital Sports, 1789 Capital Nirvana II LP, and SRCI Advisors, LLC, its wholly owned subsidiaries.

GCL was formed to originate portfolio

loan investments within the state of California.

SuRo Capital Sports was formed to focus on investing in the sports betting sector.

Capital Nirvana II LP is a SPV in which Neostellar Capital holds the sole limited partnership interest and was formed to invest in the

Common Shares of Plaid, Inc.

SRCI Advisors, LLC was formed to provide investment management services to third parties;

as of June 30,

2026, SRCI Advisors, LLC has not commenced operations.

All intercompany balances and transactions have been eliminated in consolidation.

Company operates as a single operating segment.

Company also consolidates entities that meet the definition of a Variable Interest Entity (“VIE”) for which the Company is

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Capital has determined that it has a single operating segment in accordance with Topic 280, Segment Reporting (“ASC 280”).

The Company operates as a single segment with a principal investment objective 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

The Company’s Chief Executive Officer, Chief Financial Officer, and Investment Committee collectively perform the

function that allocates resources and assesses performance, and thus together, serve as the Company’s chief operating decision

maker (the “CODM”).

Among other metrics, the CODM uses Net Change in Net Assets Resulting from Operations as a primary

GAAP profit or loss metric used in making operating decisions, which can be found on the Condensed Consolidated Statements of

Operations along with significant expenses.

The measure of segment assets is reported on the Condensed Consolidated Statements of Assets and Liabilities

as total assets.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The preparation of Condensed Consolidated Financial Statements in accordance with GAAP requires the Company’s management to make

a number of significant estimates.

The Company operates as a single segment with a principal investment objective 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.

The Company’s

Chief Executive Officer, Chief Financial Officer, and Investment Committee collectively perform the function that allocates resources

and assesses performance, and thus together, serve as the Company’s chief operating decision maker (the “CODM”).

other metrics, the CODM uses Net Change in Net Assets Resulting from Operations as a primary GAAP profit or loss metric used in making

operating decisions, which can be found on the Condensed Consolidated Statements of Operations along with significant expenses.

of segment assets is reported on the Condensed Consolidated Statements of Assets and Liabilities as total assets.

preparation of Condensed Consolidated Financial Statements in accordance with GAAP requires the Company’s management to make a

number of significant estimates.

These include estimates of the fair value of certain assets and liabilities and other estimates that

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

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

The Company’s estimates are inherently subjective in nature and actual results

could differ materially from such estimates.

It is likely that changes in these estimates may occur

in the near term.

The Company’s estimates are inherently subjective in nature and actual results could differ materially from such

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Uncertainties

37 unchanged sentences

may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

review of fair value hierarchy classifications is conducted on a quarterly basis.

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or liabilities and events that may cause a reclassification within the fair value hierarchy.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for which market quotations are readily available on an exchange are valued at the most recently available closing price of such security

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be valued as follows:

The quarterly valuation process begins with each portfolio

company or investment being initially valued by the internal investment professionals responsible for the portfolio investment;

Preliminary valuation estimates are then documented and discussed

with senior management;

For all investments for which there are no readily available

market quotations, the Valuation Committee engages an independent third-party valuation firm to conduct independent appraisals, review

management’s preliminary valuations and make its own independent assessment;

The Valuation Committee applies the appropriate valuation methodology

to each portfolio asset in a consistent manner, considers the inputs provided by management and the independent third-party valuation

firm, discusses the valuations and recommends to the Company’s Board of Directors a fair value for each investment in the portfolio;

The Company’s Board of Directors then discusses the valuations

recommended by the Valuation Committee and determines in good faith the fair value of each investment in the portfolio.

quarterly valuation process begins with each portfolio company or investment being initially

valued by the internal investment professionals responsible for the portfolio investment;

valuation estimates are then documented and discussed with senior management;

all investments for which there are no readily available market quotations, the Valuation

Committee engages an independent third-party valuation firm to conduct independent appraisals,

review management’s preliminary valuations and make its own independent assessment;

The Valuation

Committee applies the appropriate valuation methodology to each portfolio asset in a consistent manner, considers the inputs

provided by management and the independent third-party valuation firm, discusses the valuations and recommends to the

Company’s Board of Directors a fair value for each investment in the portfolio;

Company’s Board of Directors then discusses the valuations recommended by the Valuation

Committee and determines in good faith the fair value of each investment in the portfolio.

making a good faith determination of the fair value of investments, the Board of Directors applies valuation methodologies consistent

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public offerings;

purchase or sales transactions;

purchase or sale transactions;

analysis of financial ratios and valuation

4 unchanged sentences

fair value of each investment.

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

March 31, 2026

investments that are not publicly traded or that do not have readily available market quotations, the Valuation Committee generally engages

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in unrealized appreciation or depreciation currently reflected in the Condensed Consolidated Financial Statements.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

investments for which market quotations are readily available in an active market are generally valued at the most recently available

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in fair value, while material deterioration of these metrics may indicate a possible reduction in fair value.

In determining the fair value of equity or equity-linked securities (including

simple agreement for future equity (“SAFE”) notes and warrants to purchase common or preferred stock) in a portfolio company,

the Board of Directors considers the rights, preferences and limitations of such securities.

When equity-linked securities expire worthless,

any cost associated with these positions is recognized as a realized loss on investments in the Condensed Consolidated Statements of Operations

and Condensed Consolidated Statements of Cash Flows.

In the event these securities are exercised into common or preferred stock, the cost

associated with these securities is reassigned to the cost basis of the new common or preferred stock.

These conversions are noted as

non-cash operating items on the Condensed Consolidated Statements of Cash Flows.

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

March 31, 2026

determining the fair value of equity or equity-linked securities (including simple agreement for future equity (“SAFE”) notes

and warrants to purchase common or preferred stock) in a portfolio company, the Board of Directors considers the rights, preferences

and limitations of such securities.

When equity-linked securities expire worthless, any cost associated with these positions is recognized

as a realized loss on investments in the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash

In the event these securities are exercised into common or preferred stock, the cost associated with these securities is reassigned

to the cost basis of the new common or preferred stock.

These conversions are noted as non-cash operating items on the Condensed Consolidated

Statements of Cash Flows.

the nature of the Company’s current debt investments (excluding U.S.

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determined in good faith by the Company’s Board of Directors.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

in SPVs and Fund Structures

Company invests through SPVs and Fund structures, which may hold either a single underlying investment or a portfolio of underlying

The Company’s interest in these structures is generally proportionate to its capital contributions, and

distributions from the underlying investment(s) are made in accordance with that ownership.

These investments are recorded at

estimated fair value, as determined in good faith by the Company’s Board of Directors, and are presented in the Condensed

Consolidated Schedule of Investments.

If available, the Company may utilize the NAV of an SPV or Fund to substantiate its fair value

determination.

SPVs and Fund structures may incur fees, expenses, or tax liabilities associated with their underlying investments,

which can impact the fair value of the Company’s interest.

Additionally, these investments may be subject to restrictions on

redemption, transfer, or sale.

Company invests through SPVs and Fund structures, which may hold either a single underlying investment or a portfolio of underlying investments.

The Company’s interest in these structures is generally proportionate to its capital contributions, and distributions from the

underlying investment(s) are made in accordance with that ownership.

These investments are recorded at estimated fair value, as determined

in good faith by the Company’s Board of Directors, and are presented in the Condensed Consolidated Schedule of Investments.

available, the Company may utilize the NAV of an SPV or Fund to substantiate its fair value determination.

SPVs and Fund structures may

incur fees, expenses, or tax liabilities associated with their underlying investments, which can impact the fair value of the Company’s

Additionally, these investments may be subject to restrictions on redemption, transfer, or sale.

certain Fund structures, including those in which fair value is not readily determinable, the Company may apply the practical expedient

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The Company’s SPAC investments are valued at estimated fair value as determined in good faith by the Company’s Board of Directors.

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

March 31, 2026

Company Investment Classification

2 unchanged sentences

“Control investments” are investments in companies that the Company is presumed to control under Section 2(a)(9) of the 1940

Under the 1940 Act, any person who owns beneficially, either directly or through one or more controlled companies, more

than 25% of the outstanding voting securities of a company is presumed to control such company.

“Affiliate investments”

are investments in companies that are “affiliated persons” of the Company under Section 2(a)(3) of the 1940 Act.

the 1940 Act, “affiliated person” includes any person directly or indirectly owning, controlling, or holding with power

to vote, 5% or more, but not more than 25%, of the outstanding voting securities of such company.

Refer to the Condensed

Consolidated Schedules of Investments as of March 31, 2026 and December 31, 2025 for details regarding the nature and composition of

the Company’s investment portfolio.

Under the 1940 Act, any person who owns beneficially, either directly or through one or more controlled companies, more than 25%

of the outstanding voting securities of a company is presumed to control such company.

“Affiliate investments” are investments

in companies that are “affiliated persons” of the Company under Section 2(a)(3) of the 1940 Act.

Under the 1940 Act, “affiliated

person” includes any person directly or indirectly owning, controlling, or holding with power to vote, 5% or more, but not more

than 25%, of the outstanding voting securities of such company.

Refer to the Condensed Consolidated Schedules of Investments as of June

30, 2026 and December 31, 2025 for details regarding the nature and composition of the Company’s investment portfolio.

portfolio companies in which the Company invests may offer their shares in IPOs.

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and accrued expenses, approximate fair value due to their short-term nature.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Company custodies its cash with Western Alliance Trust Company, N.A., and may place cash in demand deposit accounts with other high-quality

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believes the risk of loss associated with any uninsured balance is remote.

Escrow Proceeds Receivable

A portion of the proceeds

from the sale of portfolio investments are held in escrow as a recourse for indemnity claims that may arise under the sale agreement or

other related transaction contingencies.

Amounts held in escrow are held at estimated realizable value and included in net realized gains/(losses)

on investments in the Condensed Consolidated Statements of Operations for the period in which they occurred and are adjusted as needed.

Any remaining escrow proceeds balances from these transactions reasonably expected to be received are reflected on the Condensed Consolidated

Statements of Assets and Liabilities as escrow proceeds receivable.

Escrow proceeds receivable resulting from contingent consideration

are to be recognized when the amount of the contingent consideration becomes realized or realizable.

As of March 31, 2026 and December

31, 2025, the Company had no escrow proceeds receivable.

Proceeds Receivable

portion of the proceeds from the sale of portfolio investments is held in escrow as a recourse for indemnity claims that may arise under

the sale agreement or other related transaction contingencies.

Amounts held in escrow are held at estimated realizable value and included

in net realized gains/(losses) on investments in the Condensed Consolidated Statements of Operations for the period in which they occurred

and are adjusted as needed.

Any remaining escrow proceeds balances from these transactions reasonably expected to be received are reflected

on the Condensed Consolidated Statements of Assets and Liabilities as escrow proceeds receivable.

Escrow proceeds receivable resulting

from contingent consideration are to be recognized when the amount of the contingent consideration becomes realized or realizable.

of June 30, 2026 and December 31, 2025, the Company had no escrow proceeds receivable.

Cash consists of amounts that are held in a separate account and are subject to specific contractual restrictions that limit their availability

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from unrestricted cash and cash equivalents.

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

March 31, 2026

Financing Costs

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the debt instrument.

As of March 31, 2026 and December 31, 2025, the Company had deferred financing costs of $ 500,275 and $ 508,310 , respectively,

As of June 30, 2026 and December 31, 2025, the Company had deferred financing costs of $ 578,102 and $ 508,310 , respectively,

on the Condensed Consolidated Statements of Assets and Liabilities.

SCHEDULE OF DEFERRED FINANCING COSTS

March 31, 2026

June 30, 2026

December 31, 2025

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to “Note 10—Debt Capital Activities” for further detail regarding the Company’s deferred debt issuance costs.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Leases & Related Deposits

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Non-lease components (maintenance, property tax, insurance and parking) are not included in the lease

Company has recorded a right-of-use asset and a corresponding lease liability for the operating lease obligation.

These amounts have

been discounted using the rate implicit in the lease.

Refer to “Note 7—Commitments and Contingencies— Operating Leases

and Related Deposits ” for further detail.

The Company has recorded a right-of-use asset and a corresponding lease liability for the operating lease obligation.

These amounts

have been discounted using the rate implicit in the lease.

Refer to “Note 7—Commitments and Contingencies— Operating

Leases and Related Deposits ” for further detail.

the fair value recognition provisions as prescribed by ASC 718, Stock Compensation , stock-based compensation cost is measured

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Compensation” for further detail.

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

March 31, 2026

Company recognizes gains or losses on the sale of investments using the specific identification method.

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Transaction Costs and Escrow Deposits

and other costs associated with an investment transaction, including legal expenses not reimbursed by the portfolio company, are

included in the cost basis of purchases and deducted from the proceeds of sales.

The Company makes certain acquisitions on secondary

markets, which may involve making deposits to escrow accounts until certain conditions are met, including the underlying private

company’s right of first refusal.

If the underlying private company does not exercise or assign its right of first refusal and

all other conditions are met, then the funds in the escrow account are delivered to the seller and the account is closed.

transactions would be reflected on the Condensed Consolidated Statements of Assets and Liabilities as escrow deposits.

31, 2026 and December 31, 2025, the Company had no

escrow deposits.

and other costs associated with an investment transaction, including legal expenses not reimbursed by the portfolio company, are included

in the cost basis of purchases and deducted from the proceeds of sales.

The Company makes certain acquisitions on secondary markets,

which may involve making deposits to escrow accounts until certain conditions are met, including the underlying private company’s

right of first refusal.

If the underlying private company does not exercise or assign its right of first refusal and all other conditions

are met, then the funds in the escrow account are delivered to the seller and the account is closed.

Such transactions would be reflected

on the Condensed Consolidated Statements of Assets and Liabilities as escrow deposits.

As of June 30, 2026 and December 31, 2025, the

Company had no escrow deposits.

Appreciation or Depreciation of Investments

21 unchanged sentences

excise tax rate is determined by dividing the estimated annual excise tax by the estimated annual taxable income.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

long as the Company qualifies and maintains its tax treatment as a RIC, it generally will not be subject to U.S.

federal and state

income taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends.

any tax liability related to income earned by the RIC will represent obligations of the Company’s investors and will not be

reflected in the Condensed Consolidated Financial Statements of the Company.

Included in the Company’s Condensed Consolidated

Financial Statements, the Taxable Subsidiaries are subject to U.S.

federal income tax imposed at corporate rates on their income,

regardless of whether the Company is a RIC.

federal and state income

taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends.

Rather, any tax

liability related to income earned by the RIC will represent obligations of the Company’s investors and will not be reflected in

the Condensed Consolidated Financial Statements of the Company.

Included in the Company’s Condensed Consolidated Financial Statements,

the Taxable Subsidiaries are subject to U.S.

federal income tax imposed at corporate rates on their income, regardless of whether the

Company is a RIC.

These 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 the Company’s Condensed Consolidated Financial Statements .

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

March 31, 2026

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

the Company’s Condensed Consolidated Financial Statements.

it is not treated as a RIC, the Company will be taxed as a regular corporation (a “C Corporation”) under Subchapter C of

41 unchanged sentences

during the quarter ended March 31, 2026.

However, adoption did not have any material impact on the Condensed Consolidated

Financial Statements.

SURO CAPITAL CORP.

However, adoption did not have any material impact on the Condensed Consolidated Financial Statements.

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Issued Accounting Standards

In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements:

Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” ASU 2023-06 amends the disclosure

or presentation requirements related to various subtopics in the FASB Accounting Standards Codification including requiring investment

companies to disclose the components of capital on the balance sheet.

The amendments in ASU 2023-06 will become effective on the date

which the SEC’s removal of related disclosures from Regulation S-X or Regulation S-K become effective, but no later than June 30, 2027.

October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements:

Codification Amendments in Response to the SEC’s Disclosure

Update and Simplification Initiative.” ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics

in the FASB Accounting Standards Codification including requiring investment companies to disclose the components of capital on the balance

The amendments in ASU 2023-06 will become effective on the date which the SEC’s removal of related disclosures from Regulation

S-X or Regulation S-K become effective, but no later than June 30, 2027.

The Company is currently evaluating the impact of the new guidance.

However, it does not expect ASU 2023-06 to have a material impact

on the Company’s future Condensed Consolidated Financial Statements.

November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense

Disaggregation Disclosures”, which requires disaggregated disclosure of certain costs and expenses, including purchases of

inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions.

Additionally,

in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03.

ASU 2024-03 is effective for fiscal years

beginning after December 15, 2026, and interim periods beginning with the first quarter ended March 31, 2028.

Early adoption and

retrospective application is permitted.

However, it does not expect ASU 2023-06 to have a material impact on the Company’s future Condensed Consolidated Financial Statements.

November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation

Disclosures”, which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee

compensation, depreciation, amortization and depletion, within relevant income statement captions.

Additionally, in January 2025, the

FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03.

ASU 2024-03 is effective for fiscal years beginning after December

15, 2026, and interim periods beginning with the first quarter ended March 31, 2028.

Early adoption and retrospective application is

The Company is still assessing the impact of the new guidance.

However, it does not expect

ASU 2024-03 to have a material impact on the Company’s future Condensed Consolidated Financial Statements.

However, it does not expect ASU 2024-03 to have a material

impact on the Company’s future Condensed Consolidated Financial Statements.

May 2025, the FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810) - Determining the Accounting

4 unchanged sentences

The Company is still assessing the impact of the new guidance.

However, it does not expect ASU 2025-03 to have a material impact on the Company’s future Condensed Consolidated

Financial Statements.

However, it does not expect ASU 2025-03

to have a material impact on the Company’s future Condensed Consolidated Financial Statements.

time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company

21 unchanged sentences

by the Company, and the Company’s executive officers and directors.

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Company’s investment in Skillsoft Corp.

(f/k/a Software Luxembourg Holding S.A.) (“Skillsoft”) constituted a

“remote-affiliate” transaction for purposes of the 1940 Act in light of the fact that Mr.

Klein has a non-controlling

interest in the entity that controlled Churchill Sponsor II LLC, the sponsor of Churchill

Capital Corp.

II, a SPAC, and was a non-controlling member of the board of directors of Churchill Capital Corp.

II, through which the

Company executed a private investment in public equity transaction in order to acquire common shares of Skillsoft alongside the merger

of Skillsoft and Churchill Capital Corp II.

(f/k/a Software Luxembourg Holding S.A.) (“Skillsoft”) constituted a “remote-affiliate”

transaction for purposes of the 1940 Act in light of the fact that Mr.

Klein has a non-controlling interest in the entity that controlled

Churchill Sponsor II LLC, the sponsor of Churchill Capital Corp.

II, a SPAC, and was a non-controlling member of the board of directors

of Churchill Capital Corp.

II, through which the Company executed a private investment in public equity transaction in order to acquire

common shares of Skillsoft alongside the merger of Skillsoft and Churchill Capital Corp II.

In addition, Mr.

Klein’s brother, Michael Klein, was a control person of such Churchill entities.

As of March 31, 2026, the fair value of the Company’s remote-affiliate investment in Skillsoft was $210,605 .

Klein’s brother, Michael

Klein, was a control person of such Churchill entities.

As of June 30, 2026, the fair value of the Company’s remote-affiliate investment

in Skillsoft was $ 254,297 .

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

July 15, 2026, in connection with the Externalization, the Company became externally managed by Neostellar Advisors LLC (the

“Adviser”), which is jointly owned by certain members of the Company’s former management team (including Mr.

Green) and Magnetar Holdings LLC, and a portion of the fees payable under the Investment Advisory Agreement inures to those

On the same date, the Company also entered into an Administration Agreement with Neostellar Administrative Services LLC

(the “Administrator”), an affiliate of the Adviser, and the Board of Directors appointed Erik Falk, a Partner and Head

of Strategy of Magnetar, as an interested director of the Company.

In addition, on July 16, 2026, MCP Investing LLC, an affiliate of

Magnetar, purchased a $ 20.0

million redeemable promissory note from the Company pursuant to a Securities Purchase Agreement dated June 26, 2026.

2026, the Company, the Adviser and certain affiliated funds and accounts filed an application with the SEC for an exemptive order

permitting the Company to co-invest in negotiated transactions alongside funds and accounts advised by the Adviser, Magnetar and

their affiliates.

There can be no assurance if or when such relief will be granted.

4— INVESTMENTS AT FAIR VALUE

8 unchanged sentences

Treasury bills.

As of March 31, 2026, the Company had 61 positions in 36 portfolio companies.

As of December 31,

2025, the Company had 60 positions in 35 portfolio companies.

As of June 30, 2026, the Company had 60

positions in 37

portfolio companies.

As of December 31, 2025, the Company had

in 35 portfolio

following tables summarize the composition of the Company’s investment portfolio by security type at cost and fair value as of

March 31, 2026 and December 31, 2025:

June 30, 2026 and December 31, 2025:

SCHEDULE OF COMPOSITION OF INVESTMENT PORTFOLIO

March 31, 2026

June 30, 2026

December 31, 2025

15 unchanged sentences

$ 225,511,505

of March 31, 2026 and December 31, 2025, Preferred Stock also includes the Company’s investment in the Class A Interest of

ARK Type One Deep Ventures Fund LLC which is invested in the Series A-2 Preferred Shares of OpenAI Global, LLC, and the Company’s

investment in the Membership Interest of IH10, LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

of March 31, 2026 and December 31, 2025, Common Stock in Private Portfolio Companies also includes the Company’s Limited Partner

Fund Investment in True Global Ventures 4 Plus Pte Ltd.

and the Company’s investment in the Class A Interest of CW Opportunity

2 LP which is invested in the Class A Common Stock of CoreWeave, Inc.

of March 31, 2026, Options in Private Portfolio Companies also includes the Company’s investment in the Class A Interest of

Magnetar Opportunity 2025-4 LP which is invested in a SAFE of TensorWave, Inc., as well as investments in the SAFEs of Orchard Technologies,

and PayJoy, Inc.

As of December 31, 2025, Options in Private Portfolio Companies also includes the Company’s investments

in the SAFEs of Orchard Technologies, Inc., PayJoy, Inc., and Whoop, Inc.

SURO CAPITAL CORP.

of June 30, 2026 Preferred Stock also includes the Company’s investment in the Class

A Interest of ARK Type One Deep Ventures Fund LLC which is invested in the Series A-2 Preferred

Shares of OpenAI Global, LLC, the Company’s investment in the Membership Interest of

IH10, LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

SPV, and the Company’s investment in the Class A Interest and Class B Interest of Magnetar

Opportunity 2025-4 LP which is invested in the Series B Preferred Shares of TensorWave, Inc.

As of December 31, 2025, Preferred Stock also includes the Company’s investment in

the Class A Interest of ARK Type One Deep Ventures Fund LLC which is invested in the Series

A-2 Preferred Shares of OpenAI Global, LLC, the Company’s investment in the Membership

Interest of IH10, LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV.

of June 30, 2026 and December 31, 2025, Common Stock in Private Portfolio Companies also

includes the Company’s Limited Partner Fund Investment in True Global Ventures 4 Plus

and the Company’s investment in the Class A Interest of CW Opportunity 2 LP

which is invested in the Class A Common Stock of CoreWeave, Inc.

of June 30, 2026, Options in Private Portfolio Companies also includes

the Company’s investment in the SAFE of PayJoy, Inc.

As of December 31, 2025, Options

in Private Portfolio Companies also includes the Company’s investments in the SAFEs

of Orchard Technologies, Inc., PayJoy, Inc., and Whoop, Inc.

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

geographic and industrial compositions of the Company’s portfolio at fair value as of March 31, 2026 and December 31, 2025 were

As of March 31, 2026

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

geographic and industrial compositions of the Company’s portfolio at fair value as of June 30, 2026 and December 31, 2025 were

As of June 30, 2026

As of December 31, 2025

4 unchanged sentences

$ 225,511,505

As of March 31, 2026

As of June 30, 2026

As of December 31, 2025

4 unchanged sentences

Education Technology

Financial Technology & Services

Logistics & Supply Chain

Financial Technology & Services

SuRo Capital Sports

1 unchanged sentence

$ 225,511,505

SURO CAPITAL CORP.

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

table below details the composition of the Company’s industrial themes presented in the preceding tables:

2 unchanged sentences

Infrastructure Fund

Database and Analytics

Goods & Services

14 unchanged sentences

Data Platform

Cybersecurity

Capital Sports

Media & Services

SURO CAPITAL CORP.

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Valuation Inputs

fair values of the Company’s investments disaggregated into the three levels of the fair value hierarchy based upon the lowest

level of significant input used in the valuation as of March 31, 2026 and December 31, 2025 are as follows:

level of significant input used in the valuation as of June 30, 2026 and December 31, 2025 are as follows:

SCHEDULE OF FAIR VALUE OF INVESTMENT VALUATION INPUTS

As of March 31, 2026

Active Markets for

Identical Securities

As of June 30, 2026

Investments at Fair Value

11 unchanged sentences

$ 405,851,701

Stock also includes the Company’s investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC which is invested

in the Series A-2 Preferred Shares of OpenAI Global, LLC, and the Company’s investment in the Membership Interest of IH10,

LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund Investment in True Global Ventures 4

Plus Pte Ltd.

and the Company’s investment in the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common

Stock of CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investment in the Class A Interest of Magnetar Opportunity 2025-4

LP which is invested in a SAFE of TensorWave, Inc., as well as investments in the SAFEs of Orchard Technologies, Inc.

SURO CAPITAL CORP.

(1) Preferred

Stock also includes the Company’s investment in the Class A Interest of ARK Type One

Deep Ventures Fund LLC which is invested in the Series A-2 Preferred Shares of OpenAI Global,

LLC, the Company’s investment in the Membership Interest of IH10, LLC which is invested

in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV, and the Company’s

investment in the Class A Interest and Class B Interest of Magnetar Opportunity 2025-4 LP

which is invested in the Series B Preferred Shares of TensorWave, Inc.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund

Investment in True Global Ventures 4 Plus Pte Ltd.

and the Company’s investment in

the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common Stock of

CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investment in the SAFE of PayJoy,

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2025

Active Markets

Identical Securities

Investments at Fair Value

11 unchanged sentences

$ 225,511,505

Stock also includes the Company’s investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC which is invested

in the Series A-2 Preferred Shares of OpenAI Global, LLC, and the Company’s investment in the Membership Interest of IH10,

LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

(1) Preferred

Stock also includes the Company’s investment in the Class A Interest of ARK Type One

Deep Ventures Fund LLC which is invested in the Series A-2 Preferred Shares of OpenAI Global,

LLC, and the Company’s investment in the Membership Interest of IH10, LLC which is

invested in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund Investment in True Global Ventures 4

Plus Pte Ltd.

and the Company’s investment in the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common

Stock of CoreWeave, Inc.

Options in Private Portfolio Companies also includes the Company’s investments

in the SAFEs of Orchard Technologies, Inc., PayJoy, Inc., and Whoop, Inc.

SURO CAPITAL CORP.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund

Investment in True Global Ventures 4 Plus Pte Ltd.

and the Company’s investment in

the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common Stock of

CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investments in the SAFEs

of Orchard Technologies, Inc., PayJoy, Inc., and Whoop, Inc.

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unobservable Inputs for Level 3 Assets and Liabilities

accordance with FASB ASC 820, Fair Value Measurement , the tables below provide quantitative information about the fair value measurements

of the Company’s Level 3 assets as of March 31, 2026 and December 31, 2025.

of the Company’s Level 3 assets as of June 30, 2026 and December 31, 2025.

In addition to the techniques and inputs noted in the

4 unchanged sentences

To the extent an unobservable input is not reflected in the tables below, such input is deemed insignificant with respect to the Company’s

Level 3 fair value measurements as of March 31, 2026 and December 31, 2025.

Level 3 fair value measurements as of June 30, 2026 and December 31, 2025.

Significant changes in the inputs in isolation would result

3 unchanged sentences

SCHEDULE OF FAIR VALUE OF ASSETS ON UNOBSERVABLE INPUT

of March 31, 2026

Approach/ Technique (1)

of June 30, 2026

Technique (1)

(Weighted Average) (3)

1 unchanged sentence

$ 354,836,112

Revenue Multiples

0.28 x - 5.18 x ( 2.77 x)

Precedent Transactions

- 5.12 x ( 2.28 x)

- 100 % ( 95 %)

Revenue Multiples

0.92 x - 2.85 x ( 2.67 x)

Dissolution Risk

Precedent Transaction

- 2.4 x ( 2.25 x)

stock in private companies (5)

Revenue Multiples

0.34 x - 3.51 x ( 3.34 x)

Precedent Transactions

Dissolution Risk

Precedent Transaction

- 3.58 x ( 3.41 x)

Pricing Model

Term to Expiration (Years)

0.25 - 1.11 ( 0.79 )

to Expiration (Years)

- 4.32 x ( 4.15 x)

- 100 % ( 84 %)

Precedent Transaction

Revenue Multiples

0.34 x - 3.66 x ( 2.25 x)

of March 31, 2026, the Board of Directors used a hybrid market and income approach to value certain common and preferred stock investments,

as the Board of Directors felt this approach better reflected the fair value of these investments.

In considering multiple valuation

approaches (and consequently, multiple valuation techniques), the valuation approaches and techniques are not likely to change from

one period of measurement to the next;

however, the weighting of each in determining the final fair value of a Level 3 investment

may change based on recent events or transactions.

The hybrid approach may also consider certain risk weightings to account for the

uncertainty of future events.

Refer to “Note 2—Significant Accounting Policies— Investments at Fair Value ”

for more detail.

Board of Directors considers all relevant information that can reasonably be obtained when determining the fair value of Level 3

Due to any given portfolio company’s information rights, changes in capital structure, recent events, transactions,

or liquidity events, the type and availability of unobservable inputs may change.

Increases/(decreases) in revenue multiples, earnings

before interest and taxes (“EBIT”) multiples, time to expiration, and stock price/strike price would result in higher

(lower) fair values, all else equal.

Decreases/(increases) in discount rates, volatility, and annual risk rates, would result in

higher (lower) fair values, all else equal.

The market approach utilizes market value (revenue and EBIT) multiples of publicly traded

comparable companies and available precedent sales transactions of comparable companies.

of June 30, 2026, the Board of Directors used a hybrid market and income approach to value

certain common and preferred stock investments, as the Board of Directors felt this approach

better reflected the fair value of these investments.

In considering multiple valuation approaches

(and consequently, multiple valuation techniques), the valuation approaches and techniques

are not likely to change from one period of measurement to the next;

however, the weighting

of each in determining the final fair value of a Level 3 investment may change based on recent

events or transactions.

The hybrid approach may also consider certain risk weightings to

account for the uncertainty of future events.

Refer to “Note 2—Significant Accounting

Policies— Investments at Fair Value ” for more detail.

Board of Directors considers all relevant information that can reasonably be obtained when

determining the fair value of Level 3 investments.

Due to any given portfolio company’s

information rights, changes in capital structure, recent events, transactions, or liquidity

events, the type and availability of unobservable inputs may change.

Increases/(decreases)

in revenue multiples, earnings before interest and taxes (“EBIT”) multiples,

time to expiration, and stock price/strike price would result in higher (lower) fair values,

all else equal.

Decreases/(increases) in discount rates, volatility, and annual risk rates,

would result in higher (lower) fair values, all else equal.

The market approach utilizes

market value (revenue and EBIT) multiples of publicly traded comparable companies and available

precedent sales transactions of comparable companies.

The Board of Directors carefully considers

numerous factors when selecting the appropriate companies whose multiples are used to value the Company’s portfolio companies.

These factors include, but are not limited to, the type of organization, similarity to the business being valued, relevant risk factors,

as well as size, profitability and growth expectations.

In general, precedent transactions include recent rounds of financing, recent

purchases made by the Company, and tender offers.

Refer to “Note 2—Significant Accounting Policies— Investments

at Fair Value ” for more detail.

numerous factors when selecting the appropriate companies whose multiples are used to value

the Company’s portfolio companies.

These factors include, but are not limited to, the

type of organization, similarity to the business being valued, relevant risk factors, as

well as size, profitability and growth expectations.

In general, precedent transactions include

recent rounds of financing, recent purchases made by the Company, and tender offers.

to “Note 2—Significant Accounting Policies— Investments at Fair Value ”

for more detail.

weighted averages are calculated based on the fair market value of each investment.

Stock also includes the Company’s investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC which is invested

in the Series A-2 Preferred Shares of OpenAI Global, LLC, and the Company’s investment in the Membership Interest of IH10,

LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund Investment in True Global Ventures 4

Plus Pte Ltd.

and the Company’s investment in the Class A Interest of CW Opportunity 2 LP which is invested in the Class A

Common Stock of CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investment in the Class A Interest of Magnetar Opportunity 2025-4

LP which is invested in a SAFE of TensorWave, Inc., as well as investments in the SAFEs of Orchard Technologies, Inc.

(4) Preferred

Stock also includes the Company’s investment in the Class A Interest of ARK Type One

Deep Ventures Fund LLC which is invested in the Series A-2 Preferred Shares of OpenAI Global,

LLC, the Company’s investment in the Membership Interest of IH10, LLC which is invested

in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV, and the Company’s

investment in the Class A Interest and Class B Interest of Magnetar Opportunity 2025-4 LP

which is invested in the Series B Preferred Shares of TensorWave, Inc.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund

Investment in True Global Ventures 4 Plus Pte Ltd.

and the Company’s investment in

the Class A Interest of CW Opportunity 2 LP which is invested in the Class A Common Stock

of CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investment in the SAFE of PayJoy,

(7) Probability-Weighted

Expected Return Method, or “PWERM”.

SURO CAPITAL CORP.

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

of December 31, 2025

Approach/ Technique (1)

Technique (1)

(Weighted Average) (3)

35 unchanged sentences

Precedent Transactions

of December 31, 2025, the Board of Directors used a hybrid market and income approach to value certain common and preferred stock

investments, as the Board of Directors felt this approach better reflected the fair value of these investments.

In considering multiple

valuation approaches (and consequently, multiple valuation techniques), the valuation approaches and techniques are not likely to

change from one period of measurement to the next;

however, the weighting of each in determining the final fair value of a Level

3 investment may change based on recent events or transactions.

The hybrid approach may also consider certain risk weightings to

account for the uncertainty of future events.

Refer to “Note 2—Significant Accounting Policies— Investments at

Fair Value ” for more detail.

Board of Directors considers all relevant information that can reasonably be obtained when determining the fair value of Level 3

Due to any given portfolio company’s information rights, changes in capital structure, recent events, transactions,

or liquidity events, the type and availability of unobservable inputs may change.

Increases/(decreases) in revenue multiples, earnings

before interest and taxes (“EBIT”) multiples, time to expiration, and stock price/strike price would result in higher

(lower) fair values, all else equal.

Decreases/(increases) in discount rates, volatility, and annual risk rates, would result in

higher (lower) fair values, all else equal.

The market approach utilizes market value (revenue and EBIT) multiples of publicly traded

comparable companies and available precedent sales transactions of comparable companies.

of December 31, 2025, the Board of Directors used a hybrid market and income approach to

value certain common and preferred stock investments, as the Board of Directors felt this

approach better reflected the fair value of these investments.

In considering multiple valuation

approaches (and consequently, multiple valuation techniques), the valuation approaches and

techniques are not likely to change from one period of measurement to the next;

the weighting of each in determining the final fair value of a Level 3 investment may change

based on recent events or transactions.

The hybrid approach may also consider certain risk

weightings to account for the uncertainty of future events.

Refer to “Note 2—Significant

Accounting Policies— Investments at Fair Value ” for more detail.

Board of Directors considers all relevant information that can reasonably be obtained when

determining the fair value of Level 3 investments.

Due to any given portfolio company’s

information rights, changes in capital structure, recent events, transactions, or liquidity

events, the type and availability of unobservable inputs may change.

Increases/(decreases)

in revenue multiples, earnings before interest and taxes (“EBIT”) multiples,

time to expiration, and stock price/strike price would result in higher (lower) fair values,

all else equal.

Decreases/(increases) in discount rates, volatility, and annual risk rates,

would result in higher (lower) fair values, all else equal.

The market approach utilizes

market value (revenue and EBIT) multiples of publicly traded comparable companies and available

precedent sales transactions of comparable companies.

The Board of Directors carefully considers

numerous factors when selecting the appropriate companies whose multiples are used to value the Company’s portfolio companies.

These factors include, but are not limited to, the type of organization, similarity to the business being valued, relevant risk factors,

as well as size, profitability and growth expectations.

In general, precedent transactions include recent rounds of financing, recent

purchases made by the Company, and tender offers.

Refer to “Note 2—Significant Accounting Policies— Investments

at Fair Value ” for more detail.

numerous factors when selecting the appropriate companies whose multiples are used to value

the Company’s portfolio companies.

These factors include, but are not limited to, the

type of organization, similarity to the business being valued, relevant risk factors, as

well as size, profitability and growth expectations.

In general, precedent transactions include

recent rounds of financing, recent purchases made by the Company, and tender offers.

to “Note 2—Significant Accounting Policies— Investments at Fair Value ”

for more detail.

weighted averages are calculated based on the fair market value of each investment.

Stock also includes the Company’s investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC which is invested

in the Series A-2 Preferred Shares of OpenAI Global, LLC, and the Company’s investment in the Membership Interest of IH10,

LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

(4) Preferred

Stock also includes the Company’s investment in the Class A Interest of ARK Type One

Deep Ventures Fund LLC which is invested in the Series A-2 Preferred Shares of OpenAI Global,

LLC, and the Company’s investment in the Membership Interest of IH10, LLC which is

invested in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund Investment in True Global Ventures 4

Plus Pte Ltd.

and the Company’s investment in the Class A Interest of CW Opportunity 2 LP which is invested in the Class A

Common Stock of CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investments in the SAFEs of Orchard Technologies, Inc., PayJoy,

Inc., and Whoop, Inc.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund

Investment in True Global Ventures 4 Plus Pte Ltd.

and the Company’s investment in

the Class A Interest of CW Opportunity 2 LP which is invested in the Class A Common Stock

of CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investments in the SAFEs

of Orchard Technologies, Inc., PayJoy, Inc., and Whoop, Inc.

(7) Probability-Weighted

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Funds From Operations, or “AFFO”.

aggregate values of Level 3 assets and liabilities changed during the three months ended March 31, 2026 as follows:

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

aggregate values of Level 3 assets and liabilities changed during the six months ended June 30, 2026 as follows:

SCHEDULE OF AGGREGATE VALUE OF ASSETS AND LIABILITIES

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Fair Value as of December 31, 2025

1 unchanged sentence

$ 221,302,242

Fair Value, Beginning balance

$ 169,631,231

$ 221,302,242

Transfers out of Level 3

1 unchanged sentence

Sales/Redemptions of investments

( 5,150,810 )

( 6,715,466 )

( 11,866,276 )

Exercises and conversions (4)

( 2,886,779 )

( 6,095,462 )

Realized gains/(losses)

Net change in unrealized appreciation/(depreciation) included in earnings

Fair Value as of March 31, 2026

( 8,457,820 )

Fair Value as of June 30, 2026

$ 354,836,112

Net change in unrealized appreciation/ (depreciation) of Level 3 investments still held as of March 31, 2026

$ 404,132,245

Fair Value, Ending balance

$ 354,836,112

$ 404,132,245

Net change in unrealized appreciation/ (depreciation) of Level 3 investments still held as of June 30, 2026

$ 157,818,704

Stock also includes the Company’s investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC which is invested

in the Series A-2 Preferred Shares of OpenAI Global, LLC, and the Company’s investment in the Membership Interest of IH10,

LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund Investment in True Global Ventures 4

Plus Pte Ltd.

and the Company’s investment in the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common

Stock of CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investment in the Class A Interest of Magnetar Opportunity 2025-4

LP which is invested in a SAFE of TensorWave, Inc., as well as investments in the SAFEs of Orchard Technologies, Inc.

the three months ended March 31, 2026, the Company’s portfolio investments had the following corporate actions which are reflected

SURO CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

March 31, 2026

$ ( 8,457,820 )

$ ( 407,112 )

$ 149,389,708

(1) Preferred

Stock also includes the Company’s investment in the Class A Interest of ARK Type One

Deep Ventures Fund LLC which is invested in the Series A-2 Preferred Shares of OpenAI Global,

LLC, the Company’s investment in the Membership Interest of IH10, LLC which is invested

in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV, and the Company’s

investment in the Class A Interest and Class B Interest of Magnetar Opportunity 2025-4 LP

which is invested in the Series B Preferred Shares of TensorWave, Inc.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund

Investment in True Global Ventures 4 Plus Pte Ltd.

and the Company’s investment in

the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common Stock of

CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investment in the SAFE of PayJoy,

the six months ended June 30, 2026, the Company’s portfolio investments had the following corporate actions which are reflected

Agreement for Future Equity

Shares, Series G-2 (Level 3)

Technologies, Inc.

Senior Preferred Shares, Series 1

Senior Preferred Shares, Series 2

Shares, Series D

Simple Agreement for Future Equity

Shares (Level 3)

Preferred Shares, Series E-1 (Level 3)

Opportunity 2025-4 LP

Agreement for Future Equity

Preferred Shares, Series B (Level 3)

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

aggregate values of Level 3 assets and liabilities changed during the year ended December 31, 2025 as follows:

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$ ( 1,127,603 )

change in unrealized appreciation/ (depreciation) of Level 3 investments still held

$ ( 1,127,603 )

Stock also includes the Company’s investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC which is invested

in the Series A-2 Preferred Shares of OpenAI Global, LLC, and the Company’s investment in the Membership Interest of IH10,

LLC which is invested in the Series B Preferred Shares of VAST Data, Ltd.

(1) Preferred

Stock also includes the Company’s investment in the Class A Interest of ARK Type One

Deep Ventures Fund LLC which is invested in the Series A-2 Preferred Shares of OpenAI Global,

LLC, and the Company’s investment in the Membership Interest of IH10, LLC which is

invested in the Series B Preferred Shares of VAST Data, Ltd.

through an SPV.

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund Investment in True Global Ventures 4

Plus Pte Ltd.

and the Company’s investment in the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common

Stock of CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investments in the SAFEs of Orchard Technologies, Inc., PayJoy,

Inc., and Whoop, Inc.

the year ended December 31, 2025, the Company’s portfolio investments had the following corporate actions which are reflected

Stock in Private Portfolio Companies also includes the Company’s Limited Partner Fund

Investment in True Global Ventures 4 Plus Pte Ltd.

and the Company’s investment in

the Class A Interest of CW Opportunity 2 LP which is invested in Class A Common Stock of

CoreWeave, Inc.

in Private Portfolio Companies also includes the Company’s investments in the SAFEs

of Orchard Technologies, Inc., PayJoy, Inc., and Whoop, Inc.

the year ended December 31, 2025, the Company’s portfolio investments had the following

corporate actions which are reflected below:

Shares, Series A

4 unchanged sentences

Streaming Solutions Inc.

(d/b/a BettorView)

Agreement for Future Equity

8 unchanged sentences

Shares, Series B-IV (Level 3)

SURO CAPITAL CORP.

CAPITAL CORP.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

March 31, 2026

of Investments In, and Advances to, Affiliates

during the three months ended March 31, 2026 involving the Company’s controlled investments and non-controlled/affiliate investments

were as follows:

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

of Investments In, and Advances to, Affiliates

during the six months ended June 30, 2026 involving the Company’s controlled investments and non-controlled/affiliate

investments were as follows:

SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

Type/Industry/Portfolio Company/Investment

3 unchanged sentences

Gains/(Losses)

Fair Value at March 31, 2026

Fair Value at June 30, 2026

NON-CONTROLLED/AFFILIATE INVESTMENTS * (1)

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Total Preferred Stock

( 1,269,022 )

Online Education

2 unchanged sentences

TOTAL NON-CONTROLLED/AFFILIATE INVESTMENTS* (1)

$ ( 1,269,022 )

All portfolio investments are non-income-producing, unless

otherwise identified.

Equity investments may be subject to lock-up restrictions upon their IPO.

Preferred dividends are generally only

payable when declared and paid by the portfolio company’s board of directors.

The Company’s directors, officers, employees

and staff, as applicable, may serve on the board of directors of the Company’s portfolio investments.

(Refer to “Note 3—Related-Party

Arrangements”).

All portfolio investments are considered Level 3 and valued using significant unobservable inputs, unless otherwise

(Refer to “Note 4—Investments at Fair Value”).

All of the Company’s portfolio investments are restricted

as to resale, unless otherwise noted, and were valued at fair value as determined in good faith by the Company’s Board of Directors.

(Refer to “Note 2—Significant Accounting Policies— Investments at Fair Value ”).

“Affiliate Investments” are investments in those

companies that are “Affiliated Companies” of SuRo Capital, as defined in the 1940 Act.

In general, a company is deemed to

be an “Affiliate” of SuRo Capital if SuRo Capital beneficially owns, directly or indirectly, between 5% and 25% of the voting

securities (i.e., securities with the right to elect directors) of such company.

SuRo Capital’s investments in StormWind, LLC are held

through SuRo Capital Corp.’s wholly owned subsidiary, GSVC SW Holdings, Inc.

portfolio investments are non-income-producing, unless otherwise identified.

Equity investments

may be subject to lock-up restrictions upon their IPO.

Preferred dividends are generally

only payable when declared and paid by the portfolio company’s board of directors.

The Company’s directors, officers, employees and staff, as applicable, may serve on

the board of directors of the Company’s portfolio investments.

(Refer to “Note

3—Related-Party Arrangements”).

All portfolio investments are considered Level

3 and valued using significant unobservable inputs, unless otherwise noted.

(Refer to “Note

4—Investments at Fair Value”).

All of the Company’s portfolio investments

are restricted as to resale, unless otherwise noted, and were valued at fair value as determined

in good faith by the Company’s Board of Directors.

(Refer to “Note 2—Significant

Accounting Policies— Investments at Fair Value ”).

(1) “Affiliate

Investments” are investments in those companies that are “Affiliated Companies”

of Neostellar Capital, as defined in the 1940 Act.

In general, a company is deemed to be

an “Affiliate” of Neostellar Capital if Neostellar Capital beneficially owns,

directly or indirectly, between 5% and 25% of the voting securities (i.e., securities with

the right to elect directors) of such company.

(2) Neostellar

Capital’s investments in StormWind, LLC are held through Neostellar Capital Corp.’s

wholly owned subsidiary, GSVC SW Holdings, Inc.

CAPITAL CORP.

4 unchanged sentences

were as follows:

Type/Industry/Portfolio

Company/Investment

Value at December 31, 2024

Type/Industry/Portfolio Company/Investment

Principal/Quantity

Fair Value at December 31, 2024

Transfer In/ (Out)

Gains/(Losses)

Value at December 31, 2025

INVESTMENTS * (2)

Purpose Acquisition Company

Sponsor II LLC** (3) –Class B Units

Fair Value at December 31, 2025

CONTROLLED INVESTMENTS * (2)

Special Purpose Acquisition Company

Colombier Sponsor II LLC** (3) –Class B Units

$ ( 1,103,719 )

Total Common Stock

( 1,103,719 )

Purpose Acquisition Company

Sponsor II LLC** (3) –Class W Units

CONTROLLED INVESTMENTS* (2)

Special Purpose Acquisition Company

Colombier Sponsor II LLC** (3) –Class W Units

Total Options

TOTAL CONTROLLED INVESTMENTS* (2)

$ ( 1,602,940 )

NON-CONTROLLED/AFFILIATE

INVESTMENTS * (1)

NON-CONTROLLED/AFFILIATE INVESTMENTS * (1)

Preferred Stock

Media & Services

Commercial Streaming Solutions

Interactive Media & Services

Commercial Streaming Solutions Inc.

(d/b/a BettorView)–Preferred Shares, Series A-1

$ ( 650,000 )

Maven Research, Inc.–Preferred

Shares, Series C

Research, Inc.–Preferred Shares, Series B

Knowledge Networks

LLC (4) – Preferred Shares, Series D 8%

LLC (4) – Preferred Shares, Series C 8%

LLC (4) – Preferred Shares, Series B 8%

LLC (4) – Preferred Shares, Series A 8%

Maven Research, Inc.–Preferred Shares, Series C

Maven Research, Inc.–Preferred Shares, Series B

Total Knowledge Networks

Interactive Learning

StormWind, LLC (4) – Preferred Shares, Series D 8%

StormWind, LLC (4) – Preferred Shares, Series C 8%

StormWind, LLC (4) – Preferred Shares, Series B 8%

StormWind, LLC (4) – Preferred Shares, Series A 8%

Total Interactive Learning

( 1,411,460 )

1 unchanged sentence

( 2,061,460 )

Online Education

Curious.com, Inc.–Common Shares

NON-CONTROLLED/AFFILIATE INVESTMENTS* (1)

Total Common Stock

TOTAL NON-CONTROLLED/AFFILIATE INVESTMENTS* (1)

$ ( 2,061,460 )

17 unchanged sentences

Accounting Policies— Investments at Fair Value ”).

Indicates assets that SuRo

Capital believes do not represent “qualifying assets” under Section 55(a) of the 1940 Act.

Of the Company’s total

investments as of December 31, 2025, 32.70 % of its total investments are non-qualifying assets, excluding cash and short-term US treasuries.

Indicates assets that Neostellar Capital believes do not represent

“qualifying assets” under Section 55(a) of the 1940 Act.

Of the Company’s total investments as of December 31, 2025,

32.70 % of its total investments are non-qualifying assets, excluding cash and short-term US treasuries.

(1) “Affiliate

Investments” are investments in those companies that are “Affiliated Companies”

of SuRo Capital, as defined in the 1940 Act.

In general, a company is deemed to be an “Affiliate”

of SuRo Capital if SuRo Capital beneficially owns, directly or indirectly, between 5% and

25% of the voting securities (i.e., securities with the right to elect directors) of such

of Neostellar Capital, as defined in the 1940 Act.

In general, a company is deemed to be

an “Affiliate” of Neostellar Capital if Neostellar Capital beneficially owns,

directly or indirectly, between 5% and 25% of the voting securities (i.e., securities with

the right to elect directors) of such company.

Investments” are investments in those companies that are “Controlled Companies”

of SuRo Capital, as defined in the 1940 Act.

of Neostellar Capital, as defined in the 1940 Act.

In general, under the 1940 Act, the Company

6 unchanged sentences

reorganization or similar business combination with one or more businesses.

Capital’s investments in StormWind, LLC are held through SuRo Capital Corp.’s

(4) Neostellar

Capital’s investments in StormWind, LLC are held through Neostellar Capital Corp.’s

wholly owned subsidiary, GSVC SW Holdings, Inc.

20 unchanged sentences

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

the three months ended March 31, 2026 and 2025, the Company did no t repurchase any shares of the Company’s common stock under the

the six months ended June 30, 2026 and 2025, the Company did no t repurchase any shares of the Company’s common stock under the

Share Repurchase Program.

As of March 31, 2026, the dollar value of shares that remained available to be purchased by the Company under

As of June 30, 2026, the dollar value of shares that remained available to be purchased by the Company under

the Share Repurchase Program was approximately $ 25.0 million.

19 unchanged sentences

time to time.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Agents will receive a commission from the Company equal to up to 2.0 % of the gross sales price of any Shares sold through the Agents

2 unchanged sentences

agreements of the Company, conditions to closing, indemnification rights and obligations of the parties and termination provisions.

the three months ended March 31, 2026 and 2025, the Company did no t issue or sell Shares under the ATM Program.

As of March 31, 2026,

Sales of Shares under the ATM Program may be made only pursuant to an effective registration statement.

30, 2026, the Company filed a new shelf registration statement on Form N-2 with the SEC, which had not been declared effective as of the

date of these Condensed Consolidated Financial Statements.

Refer to “Note 12—Subsequent Events—Shelf Registration Statement.”

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

the three and six months ended June 30, 2026 and 2025, the Company did no t issue or sell Shares under the ATM Program.

As of June 30,

2026, up to approximately $ 87.9 million in aggregate amount of the Shares remain available for sale under the ATM Program.

1 unchanged sentence

following information sets forth the computation of basic and diluted net change in net assets resulting from operations per common share,

pursuant to ASC 260, for the three months ended March 31, 2026 and 2025.

OF BASIC AND DILUTED COMMON SHARE

Months Ended March 31,

per common share–basic:

Net change in net assets resulting

from operations

pursuant to ASC 260, for the three and six months ended June 30, 2026 and 2025.

SCHEDULE OF BASIC AND DILUTED COMMON SHARE

Three Months Ended June 30,

Six Months Ended June 30,

Earnings per common share–basic:

Net change in net assets resulting from operations

$ ( 18,703,673 )

$ 136,932,387

Weighted-average common

per common share–basic

per common share–diluted:

Weighted-average common shares–basic

Earnings per common share–basic

Earnings per common share–diluted:

Net change in net assets resulting from operations

2 unchanged sentences

for interest and amortization on 6.50 % Convertible Notes due 2029 (1)

change in net assets resulting from operations, as adjusted

Net change in net assets resulting from operations, as adjusted

$ ( 18,703,673 )

1 unchanged sentence

for dilutive effect of 6.50 % Convertible Notes due 2029 (1)

Weighted-average

common shares outstanding–diluted (1)

per common share–diluted

the three months ended March 31, 2025, 4,516,131 potentially dilutive common shares were excluded from the weighted-average common shares

outstanding for diluted net change in net assets resulting from operations per common share because the effect of these shares would

have been anti-dilutive.

Weighted-average common shares outstanding–diluted

Earnings per common share–diluted

the three months ended June 30, 2026, 4,192,642 potentially dilutive common shares were excluded from the weighted-average common

shares outstanding for diluted net change in net assets resulting from operations per common share because the effect of these shares

would have been antidilutive.

7— COMMITMENTS AND CONTINGENCIES

5 unchanged sentences

months ended March 31, 2026, the Company funded $ 5,000,000 of the commitment.

As of March 31, 2026, the remaining unfunded commitment

to Magnetar Opportunity 2025-4 LP was $ 15,000,000 , subject to the satisfaction of certain conditions.

During the three months ended June 30, 2026, the Company

funded the remaining commitment of $ 15,000,000 .

As of June 30, 2026, the entire commitment to Magnetar Opportunity 2025-4 LP has been

time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating

4 unchanged sentences

The Company is not currently a party to any material legal proceedings.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Leases and Related Deposits

9 unchanged sentences

lease cost that is amortized on a straight-line basis over the life of the lease.

of March 31, 2026 and December 31, 2025, the Company booked a right-of-use asset and operating lease liability of $ 324,895

and $ 327,932 ,

respectively, on the Condensed Consolidated Statements of Assets

and Liabilities .

As of March 31, 2026 and December 31, 2025, the Company recorded a security deposit of $ 16,574

and $ 16,574 ,

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

of June 30, 2026 and December 31, 2025, the Company booked a right-of-use asset and operating lease liability of $ 262,213 and $ 327,932 ,

respectively, on the Condensed Consolidated Statements of Assets and Liabilities .

For the three months ended March 31, 2026 and

2025, the Company incurred $ 37,066

and $ 23,188 ,

respectively, of operating lease expense.

The amounts reflected on the Condensed Consolidated Statements of Assets and Liabilities

have been discounted using the rate implicit in the lease.

As of March 31, 2026, the remaining lease term was 2.2

years and the discount rate was 3.00 %.

following table shows future minimum payments under the Company’s operating lease as of March 31, 2026:

OF FUTURE MINIMUM PAYMENTS OF OPERATION LEASE

the Year Ended December 31,

As of June 30, 2026 and December 31, 2025, the Company

recorded a security deposit of $ 16,574 and $ 16,574 , respectively, on the Condensed Consolidated Statements of Assets and Liabilities.

For the three months ended June 30, 2026 and 2025, the Company incurred $ 36,910 and $ 34,021 , respectively, of operating lease expense.

For the six months ended June 30, 2026 and 2025, the Company incurred $ 73,975 and $ 57,209 , respectively, of operating lease expense.

The amounts reflected on the Condensed Consolidated Statements of Assets and Liabilities have been discounted using the rate implicit

in the lease.

As of June 30, 2026, the remaining lease term was 1.9 years and the discount rate was 3.00 %.

following table shows future minimum payments under the Company’s operating lease as of June 30, 2026:

SCHEDULE OF FUTURE MINIMUM PAYMENTS OF OPERATION LEASE

For the Year Ended December 31,

8— FINANCIAL HIGHLIGHTS

OF FINANCIAL HIGHLIGHTS

Three Months Ended March 31,

SCHEDULE OF FINANCIAL HIGHLIGHTS

Three Months Ended June 30,

Six Months Ended June 30,

Per Basic Share Data

Net asset value at beginning of

Net asset value

Net investment

gain/(loss) on investments (1)

loss on partial repurchase of 6.00% Notes due December 30, 2026 (1)

in unrealized appreciation/(depreciation) of investments (1)

compensation (1)

Net asset value at beginning of period

Net investment loss (1)

Net realized gain on investments (1)

Realized loss on partial repurchase of 6.00% Notes due December 30, 2026 (1)

Net change in unrealized

appreciation/(depreciation) of investments (1)

Issuance of common stock from conversion of 6.50% Convertible Notes due 2029 (1)

Stock-based compensation (1)(2)

Net asset value at end of period

Per share market value at end of period

Total return based on market

Total return based on net

asset value (2)

Total return based on market value (3)

Total return based on net asset value (3)

Shares outstanding at end of period

3 unchanged sentences

$ 219,409,595

$ 355,856,986

$ 219,409,595

Average net assets

1 unchanged sentence

$ 160,412,515

of net operating expenses to average net assets (3)

Ratio of net investment loss

to average net assets (3)

$ 286,289,589

$ 158,444,298

Ratio of net operating expenses to average net assets (4)

Ratio of net investment loss to average net assets (4)

Portfolio Turnover Ratio

on weighted-average number of shares outstanding for the relevant period.

(2) Represents stock-based compensation recognized during the period, net of shares withheld to satisfy statutory

tax withholding obligations upon the vesting of restricted stock awards.

return based on market value is based upon the change in market price per share between the

opening and ending market values per share in the period, adjusted for dividends.

Total return based on net asset value is based upon the change in net asset value

per share between the opening and ending net asset values per share in the period, adjusted

for dividends.

based on net asset value is based upon the change in net asset value per share between the

opening and ending net asset values per share in the period, adjusted for dividends.

(4) Financial

highlights for periods of less than one year are annualized and the ratios of operating expenses

to average net assets and net investment loss to average net assets are adjusted accordingly.

Because the ratios are calculated for the Company’s common stock taken as a whole,

an individual investor’s ratios may vary from these ratios.

highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment

loss to average net assets are adjusted accordingly.

For the three and six months ended June 30, 2026 ,

the annualization of these ratios excludes the effect of approximately $ 20.0 million of accelerated and non-recurring expenses incurred

in connection with the Externalization.

Because the ratios are calculated for the Company’s common stock taken as a whole, an individual

investor’s ratios may vary from these ratios.

CAPITAL CORP.

41 unchanged sentences

Company has subsidiaries that are classified as corporations for U.S.

federal income tax purposes which hold certain portfolio

investments in an effort to limit potential legal liability and/or comply with source-income type requirements contained in the RIC

tax provisions of the Code.

These subsidiaries are consolidated for GAAP and the portfolio investments held by the subsidiaries are

included in the Company’s Condensed Consolidated Financial Statements and are recorded at fair value.

These subsidiaries are

not consolidated with the Company for U.S.

federal income tax purposes and may generate income tax expense, or benefit, and tax

assets and liabilities as a result of their ownership of certain portfolio investments.

Any income generated by these subsidiaries

generally would be subject to U.S.

federal income tax purposes which hold certain portfolio investments

in an effort to limit potential legal liability and/or comply with source-income type requirements contained in the RIC tax provisions

These subsidiaries are consolidated for GAAP and the portfolio investments held by the subsidiaries are included in the

Company’s Condensed Consolidated Financial Statements and are recorded at fair value.

These subsidiaries are not consolidated with

the Company for U.S.

federal income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities as a

result of their ownership of certain portfolio investments.

Any income generated by these subsidiaries generally would be subject to

federal income tax imposed at corporate rates.

3 unchanged sentences

federal excise tax.

Company is required to include net deferred tax provision/benefit in calculating its total expenses even though these net deferred taxes

are not currently payable/receivable.

CAPITAL CORP.

1 unchanged sentence

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Company is required to include net deferred tax provision/benefit in calculating its total expenses even though these net deferred taxes

are not currently payable/receivable.

federal and state income tax purposes, a portion of the Taxable Subsidiaries’ net operating loss carryforwards and basis differences

9 unchanged sentences

related to uncertain tax positions as incurred.

As of March 31, 2026, there were no material interest or penalties incurred related to

As of June 30, 2026, there were no material interest or penalties incurred related to

uncertain tax positions.

27 unchanged sentences

obligations of any of the Company’s subsidiaries.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Company records certain fees and expenses incurred in connection with its 6.00% Notes due 2026 as deferred debt issuance costs.

costs are reflected in the carrying value of the 6.00% Notes due 2026.

As of March 31, 2026 and December 31, 2025, the Company had

deferred debt issuance costs of $ 141,276

As of June 30, 2026 and December 31, 2025, the Company had deferred

debt issuance costs of $ 94,360

and $ 187,676 ,

respectively, associated with the 6.00% Notes due 2026.

The table below shows a reconciliation from the aggregate principal amount

of 6.00% Notes due 2026 to the balance shown on the Condensed Consolidated Statements of Assets and Liabilities.

The table below shows a reconciliation from the aggregate principal amount of

6.00% Notes due 2026 to the balance shown on the Condensed Consolidated Statements of Assets and Liabilities.

OF RECONCILIATION

FROM AGGREGATE PRINCIPAL AMOUNT OF 6.00% NOTES DUE 2026

Aggregate principal amount of 6.00%

Notes due 2026

Direct deduction of deferred

debt issuance costs

6.00% Notes due 2026 are listed for trading on the Nasdaq Global Select Market under the symbol “SSSSL”.

June 30, 2026

December 31, 2025

Aggregate principal amount of 6.00% Notes due 2026

Direct deduction of deferred debt issuance costs

6.00% Notes due 2026 are listed for trading on the Nasdaq Global Select Market under the symbol “NSLRL”.

The reported closing

market price of SSSSL on March 31, 2026 and December 31, 2025 was $ 25.07 and $ 25.00 per note, respectively.

As of March 31, 2026 and

December 31, 2025, the fair value of the 6.00% Notes due 2026 was $ 35.8 million and $ 35.8 million, respectively.

market price of NSLRL on June 30, 2026 and December 31, 2025 was $ 24.99 and $ 25.00 per note, respectively.

As of June 30, 2026 and December

31, 2025, the fair value of the 6.00% Notes due 2026 was $ 35.8 million and $ 35.8 million, respectively.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

4 unchanged sentences

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

Repurchase Program”) which allows the Company to repurchase up to an additional $ 40.0

million or the remaining aggregate principal amount, of its

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 aggregate principal amount of the 6.00% Notes due 2026.

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

amount, of its 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

aggregate principal amount of the 6.00% Notes due 2026.

Convertible Notes due 2029

7 unchanged sentences

as a single series with the Initial Notes and prior issuances of Additional Notes.

As of March 31, 2026, $ 35.0 million of 6.50% Convertible

Notes due 2029 had been issued.

6.50% Convertible Notes due 2029 bear interest at a rate of 6.50 % per year, payable quarterly in arrears on March 30, June 30, September

10 unchanged sentences

to determine if a future event would require bifurcation.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

17 unchanged sentences

of record as of the close of business on November 21, 2025 .

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

6.50% Convertible Notes due 2029 are direct unsecured obligations of the Company and rank pari passu, or equal in right of payment,

5 unchanged sentences

on the outstanding principal amount of the 6.50% Convertible Notes due 2029 shall increase as of the date of such entry to 7.00 % per

the three and six months ended June 30, 2026, the Company issued 1,092,504

shares of its common stock and paid cash in lieu of fractional shares upon the conversion of $ 8,000,000

in aggregate principal amount of the 6.50 %

Convertible Notes due 2029.

table below shows a reconciliation from the aggregate principal amount of 6.50% Convertible Notes due 2029 to the balance shown on the

2 unchanged sentences

FROM AGGREGATE PRINCIPAL AMOUNT OF 6.50% CONVERTIBLE NOTES DUE 2029

Aggregate principal amount of 6.50%

Convertible Notes due 2029

Direct deduction of deferred

debt issuance costs

June 30, 2026

December 31, 2025

Aggregate principal amount of 6.50% Convertible Notes due 2029

Conversion of 6.50% Convertible Notes due 2029

( 8,000,000 )

Direct deduction of deferred debt issuance costs

11— STOCK-BASED COMPENSATION

12 unchanged sentences

pay the exercise price of Options granted to them with shares of the Company’s common stock.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

the Second Amended & Restated 2019 Equity Incentive Plan, each non-employee director will receive an annual grant of $ 50,000 worth

4 unchanged sentences

of such grant).

During the three months ended March 31, 2026, the Company did no t grant any restricted shares to the Company’s

non-employee directors pursuant to the Second Amended & Restated 2019 Equity Incentive Plan.

During the six months ended June 30, 2026, the Company granted 17,680 restricted shares to the Company’s non-employee

directors pursuant to the Second Amended & Restated 2019 Equity Incentive Plan.

Additionally, on May 28, 2026, 31,248 restricted shares related to the 2025 non-employee director grants vested.

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

than such restricted shares granted to non-employee directors, the Compensation Committee of the Company’s Board of Directors may

9 unchanged sentences

granted to a 10% Stockholder, the term of an incentive stock option will be for no more than five years from the date of grant.

the three months ended March 31, 2026, the Company did not grant any restricted shares to the Company’s officers pursuant to the

Second Amended & Restated 2019 Equity Incentive Plan.

the three months ended March 31, 2026 and 2025, the Company recognized stock-based compensation expense of $ 555,226

and $ 276,007 ,

April 2, 2026, in connection with the Externalization, the Compensation Committee approved grants of 350,000

restricted shares to Mr.

Klein and Ms.

Green, respectively, and cash bonuses of $ 850,000 to Mr.

Klein and $ 500,000 to Ms.

each case contingent on stockholder approval of the Investment Advisory Agreement.

The Company’s stockholders approved the

Investment Advisory Agreement on June 10, 2026, and the Company granted those restricted shares on June 12, 2026 under the Second Amended & Restated 2019 Equity Incentive Plan.

In connection with the Externalization,

on June 15, 2026 the Company’s Board of Directors approved the acceleration in full of the vesting of all restricted shares then

outstanding and unvested under the Amended and Restated 2019 Equity Incentive Plan and the Second Amended & Restated 2019 Equity Incentive

Plan, effective as of June 15, 2026, including the 17,680 restricted shares granted to the Company’s non-employee directors in 2026.

No restricted shares remained outstanding under either plan as of June 30, 2026.

The Company accounted for

the acceleration as a Type I, probable-to-probable modification under ASC 718, Stock Compensation.

The modification did not otherwise

change the underlying economic terms of the awards and did not result in incremental compensation cost because the fair value of the awards

immediately before and immediately after the modification was the same.

As a result, the Company recognized the remaining unrecognized

compensation cost associated with the grant-date fair value of the outstanding awards upon consummation of the Externalization.

the six months ended June 30, 2026 and 2025, the Company recognized stock-based compensation expense of $ 11,807,726 (exclusive

of $ 5,734,365 in aggregate income tax liability paid by the Company on behalf of certain executives as a result of the vesting of

certain grants) and $ 499,125 ,

respectively, not including executive and employee forfeits.

As of March 31, 2026 and December 31, 2025, there were approximately $ 5,214,978

and $ 5,722,648

(immaterially adjusted from amount previously disclosed), respectively,

of total unrecognized compensation costs related to the restricted share grants.

Compensation expense associated with the restricted

shares is recognized on a quarterly basis over the respective vesting periods.

following table summarizes the activities for the Company’s restricted share grants for the three months ended March 31, 2026 under

The increase in stock-based compensation expense during the six months

ended June 30, 2026 was primarily attributable to (i) the acceleration of vesting for outstanding restricted share awards in

connection with the Externalization, resulting in the immediate recognition of the remaining unrecognized compensation cost

associated with those awards and (ii) compensation expense recognized for restricted share awards granted to executive officers in

connection with the Externalization.

As of June 30, 2026 and December 31, 2025, there were approximately $ 0 and

$ 5,722,648 (immaterially

adjusted from amount previously disclosed), respectively, of total unrecognized compensation costs related to the restricted share

Compensation expense associated with the restricted shares is recognized on a quarterly basis over the respective vesting

following table summarizes the activities for the Company’s restricted share grants for the six months ended June 30, 2026 under

the Second Amended & Restated 2019 Equity Incentive Plan:

2 unchanged sentences

Outstanding as of December 31, 2025 (1)

Outstanding as of March 31, 2026

Total vested since inception as of March 31, 2026

( 1,394,853 )

Outstanding as of June 30, 2026

Total vested since inception as of June 30, 2026

including unvested dividends.

1 unchanged sentence

reduced for those vested shares forfeited at time of vest related to net share settlement.

Second Amended & Restated 2019 Equity Incentive Plan provides for the concept of “net

share settlement.” Specifically, it provides that the Company is authorized to withhold

the Common Stock at the time the restricted shares are vested and taxed in satisfaction of

the Participant’s tax obligations.

The Second Amended & Restated 2019 Equity Incentive Plan provides for the concept of

“net share settlement.” Specifically, it provides that the Company is authorized

to withhold the Common Stock at the time the restricted shares are vested and taxed in satisfaction

of the Participant’s tax obligations.

CAPITAL CORP.

2 unchanged sentences

12— SUBSEQUENT EVENTS

April 1, 2026 through May 5, 2026, the Company made the following investments (not including capitalized transaction costs).

July 1, 2026 through August 5, 2026, the Company made the following investments (not including capitalized transaction costs).

OF INVESTMENTS BY COMPANY

Huntress Labs Inc.

ClickHouse, Inc.

Series A Preferred

April 1, 2026 through May 5, 2026, the Company received proceeds from the following investment.

OF INVESTMENTS

Portfolio Company

Transaction Date

Shogun Enterprises, Inc.

(d/b/a Hearth) (1)

Common Shares

July 10, 2026, the Company exercised 86,076 warrants and received 86,076 Common Shares of Shogun Enterprises, Inc.

July 1, 2026 through August 5, 2026, the Company exited the following investment.

OF INVESTMENT

Portfolio Company

Transaction Date

Average Net Share Price (1)

Realized Gain

CW Opportunity 2 LP

_________________________________

(1) CW Opportunity 2 LP is an SPV for which the Class A Interest is solely invested in the Class A Common Shares of CoreWeave,

gain is calculated based on the current reporting by the SPV,

but may be subject to change or adjustment due to the impact of performance fees that may

GrabAGun Digital Holdings Inc.

- Common Shares (2)

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

fees on the sale(s), if applicable.

of August 5, 2026, we continue to hold 308,964 Common Shares of GrabAGun Digital Holdings,

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

7 unchanged sentences

equity investments will be effectuated.

Conversion of the 6.50% Convertible Notes due 2029

April 1, 2026 through May 5, 2026, the Purchaser of the 6.50% Convertible Notes due 2029 elected to exercise their conversion

option on multiple occasions and convert a total of $ 5.0

million of their principal amount ($ 1,000

per Note) into 682,815 shares

of the Company’s common stock and $ 19.56 in

lieu of fractional shares.

As of May 5, 2026 ,

the remaining principal balance of the 6.50% Convertible Notes due 2029 was $ 30.0

Externalization

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

an internally managed BDC to an externally managed structure (the “Externalization”).

The Board of Directors also approved

the related investment advisory agreement (the “Advisory Agreement”) with Neostellar Advisors LLC (the “Adviser”),

an entity jointly owned by certain current employees of the Company and Magnetar Holdings LLC, pursuant to which the Adviser would be

appointed as the investment adviser of the Company.

Entry into the Advisory Agreement effectuating the Externalization is subject to

approval by the Company’s stockholders.

If the Company’s stockholders do not approve the Advisory Agreement, the Company

will continue its operations as an internally managed BDC.

For the avoidance of doubt, the Company is not being sold.

If the Externalization

occurs, the Company’s stockholders immediately prior to the Externalization will be the Company’s stockholders immediately

following the Externalization and will hold the same number of shares of the Company’s common stock as they did prior to the Externalization.

key terms of the Externalization and the Advisory Agreement include:

Incentive Fee on Pre-Existing Portfolio — Under the Advisory Agreement, the Adviser

would not be paid an incentive fee on any realized gains attributable to the Company’s

existing portfolio.

Any such realized gains will inure to the benefit of the Company’s

stockholders.

Annual Cost Savings — Based on the Board’s analysis, the Externalization

is expected to result in annual expense savings of approximately 0.77 % of average total assets

compared to the current internal management structure.

$20 Million Capital Commitment — In connection with the Externalization, Magnetar

will agree to invest $ 20 million in the Company, the form of which will depend on certain

● Competitive

Fee Structure — The Board of Directors noted that the proposed base management

fee of 1.75 % of the Company’s gross assets is competitive with fees charged by comparable

BDCs and is below the median fee charged by private market venture and technology funds.

In addition, the fact that the Company will not pay any incentive fees on existing investments

has the potential to be highly accretive to stockholders.

Continuity — The Company’s current investment team, including Mark D.

(Chairman, CEO and President) and Allison Green (CFO, Treasurer and Corporate Secretary),

will remain in their current capacities but will be employed by the Adviser rather than the

Company following the Externalization.

effectiveness of the Advisory Agreement, the Company also will enter into an administration agreement (the “Administration Agreement”)

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

Under the terms of the Administration

Agreement, the Administrator has agreed to perform (or oversee or arrange for the performance of) the administrative services necessary

for the operation of the Company.

The Company will reimburse the Administrator for the costs and expenses incurred by the Administrator

in performing its obligations and providing personnel and facilities under the Administration Agreement, including the Company’s

allocable portion of overhead.

April 2, 2026, in connection with the Externalization, the Company’s Compensation Committee approved the following:

of 350,000 restricted shares (with any aggregate income tax liability to be paid by the Company) to Mark D.

Klein, the Company’s

Chairman, President and Chief Executive Officer;

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

be paid by the Company) to Allison Green, the Company’s Chief Financial Officer, Treasurer and Corporate Secretary;

bonus of $ 850,000 to Mark D.

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 the Company’s stockholders.

a special meeting held on June 10, 2026, the Company’s stockholders approved a new investment advisory agreement (the

“Investment Advisory Agreement”) with Neostellar Advisors LLC, a Delaware limited liability company and registered

investment adviser (the “Adviser”) that is jointly owned by certain members of the Company’s former management

team and by Magnetar Holdings LLC.

As a result, effective July 15, 2026 (the “Effective Date”), the Company transitioned

from an internally managed BDC to an externally managed BDC managed by the Adviser, and changed its name from “SuRo Capital

Corp.” to “Neostellar Capital Corp.” (the “Externalization”).

The Company’s common stock

continues to trade on the Nasdaq Global Select Market, now under the ticker symbol “NSLR.” Under the Investment Advisory

Agreement, the Company pays the Adviser a base management fee at an annual rate of 1.75 %

of gross assets, payable monthly in arrears, and an incentive fee consisting of an income-based fee and a capital gains fee;

incentive fee is payable with respect to investments held prior to the Effective Date.

On the Effective Date, the Company also

entered into an administration agreement with Neostellar Administrative Services LLC, an affiliate of the Adviser, and the Board of

Directors appointed Erik Falk, a Partner and Head of Strategy of Magnetar, as an interested director.

In addition, on July 16, 2026,

MCP Investing LLC, an affiliate of Magnetar, purchased from the Company, for $ 20,000,000 ,

a redeemable promissory note bearing interest at 6.50 %

per annum (payable semi-annually in cash) and maturing in 2029, pursuant to a Securities Purchase Agreement dated June 26, 2026.

connection with the Externalization, on June 15, 2026, the Board of Directors of the Company approved the acceleration of the

vesting of all unvested restricted shares granted under the Amended and Restated 2019 Equity Incentive Plan and the Second Amended

and Restated 2019 Equity Incentive Plan.

The restricted share grants

and cash bonuses approved in connection with the Externalization, and the acceleration of the vesting of the Company’s outstanding

restricted shares, occurred during the quarter ended June 30, 2026 and are described in “Note 11—Stock-Based Compensation.”

Shelf Registration Statement

On July 30, 2026, the Company filed a registration statement on Form N-2 with the SEC pursuant to which the Company

may offer, from time to time in one or more offerings, up to $ 500,000,000 of its common stock, preferred stock, subscription rights to

purchase shares of its common stock, debt securities, or warrants representing rights to purchase shares of its common stock, preferred

stock or debt securities.

As of the date of these Condensed Consolidated Financial Statements, the registration statement had not been

declared effective, and no securities had been offered or sold thereunder.

Fees and expenses incurred in connection with the registration

statement are recorded as deferred financing costs.

Refer to “Note 2—Significant Accounting Policies—Deferred Financing

CAPITAL CORP.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

13— SUPPLEMENTAL FINANCIAL DATA

15 unchanged sentences

of an investment company.

Company had no controlled portfolio companies as of March 31, 2026.

The Company’s controlled portfolio company as of March 31,

2025, Colombier Sponsor II LLC, did not meet the definition of a “significant subsidiary” as set forth in Rule 1-02(w)(2)

of Regulation S-X.

Company had no controlled portfolio companies as of June 30, 2026.

The Company’s controlled portfolio company as of June 30, 2025,

Colombier Sponsor II LLC, did not meet the definition of a “significant subsidiary” as set forth in Rule 1-02(w)(2) of Regulation

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 1. Financial Statements