What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-07 compared with 2024-11-08 · 510 added, 681 removed, 111 unchanged (91% of the section changed)

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

Forward-Looking

quarterly report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties.

These forward-looking

statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and

prospective portfolio investments, our industry, our beliefs, and our assumptions.

Words such as “anticipates,” “expects,”

“intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,”

“estimates,” “would,” “could,” “should,” “targets,” “projects,”

and variations of these words and similar expressions are intended to identify forward-looking statements.

forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including, without limitation,

statements as to:

future operating results;

dependence upon our management team and key investment professionals;

business prospects and the prospects of our portfolio companies;

ability to manage our business and future growth;

impact of investments that we expect to make;

related to investments in growth-stage companies, other venture capital-backed companies,

and generally U.S.

contractual arrangements and relationships with third parties;

ability to make distributions;

dependence of our future success on the general economy and its impact on the industries

in which we invest;

related to the uncertainty of the value of our portfolio investments;

ability of our portfolio companies to achieve their objectives;

in political, economic or industry conditions;

expected financings and investments;

impact of changes in laws or regulations (including the interpretation thereof), including

tax laws, on our operations and/or the operation of our portfolio companies;

adequacy of our cash resources and working capital;

related to market volatility, including general price and volume fluctuations in stock markets;

timing of cash flows, if any, from the operations of our portfolio companies.

statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond

our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking

statements, including, without limitation:

economic downturn could impair our portfolio companies’ ability to continue to operate,

which could lead to the loss of some or all of our investments in such portfolio companies;

economic downturn could disproportionately impact the market sectors in which a significant

portion of our portfolio is concentrated, causing us to suffer losses in our portfolio;

contraction of available credit and/or an inability to access the equity markets could impair

Forward-Looking Statements

This quarterly report on Form

10-Q contains forward-looking statements that involve substantial risks and uncertainties.

These forward-looking statements are not historical

facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments,

our industry, our beliefs, and our assumptions.

Words such as “anticipates,” “expects,” “intends,”

“plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,”

“would,” “could,” “should,” “targets,” “projects,” and variations of these

words and similar expressions are intended to identify forward-looking statements.

The forward-looking statements

contained in this quarterly report on Form 10-Q involve risks and uncertainties, including, without limitation, statements as to:

● our future operating results;

● our dependence upon our management team and key investment professionals;

● our business prospects and the prospects of our portfolio companies;

● our ability to manage our business and future growth;

● the impact of investments that we expect to make;

● risks related to investments in growth-stage companies, other venture capital-backed companies, and generally

● our contractual arrangements and relationships with third parties;

● our ability to make distributions;

● the dependence of our future success on the general economy and its impact on the industries in which

● risks related to the uncertainty of the value of our portfolio investments;

● the ability of our portfolio companies to achieve their objectives;

● change in political, economic or industry conditions;

● our expected financings and investments;

● the impact of changes in laws or regulations (including the interpretation thereof), including tax laws,

on our operations and/or the operation of our portfolio companies;

● the adequacy of our cash resources and working capital;

● risks related to market volatility, including general price and volume fluctuations in stock markets;

● the timing of cash flows, if any, from the operations of our portfolio companies.

These statements are not guarantees

of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to

predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including,

without limitation:

● an economic downturn could impair our portfolio companies’ ability to continue to operate, which

could lead to the loss of some or all of our investments in such portfolio companies;

● an economic downturn could disproportionately impact the market sectors in which a significant portion

of our portfolio is concentrated, causing us to suffer losses in our portfolio;

● a contraction of available credit and/or an inability to access the equity markets could impair our investment

● increases in inflation or an inflationary economic environment could adversely affect our portfolio companies’

operating results, causing us to suffer losses in our portfolio;

● interest rate volatility could adversely affect our results, particularly because we use leverage as part

of our investment strategy;

● the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors”

in our quarterly reports on Form 10-Q, our annual report on Form 10-K, and in our other filings with the SEC.

Although we believe that the

assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate,

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

Important assumptions include our

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

of these and other uncertainties, the inclusion of a projection or forward-looking statement in this quarterly report on Form 10-Q should

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

These risks and uncertainties include those

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

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

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

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

We are an internally managed,

non-diversified closed-end management investment company that has elected to be regulated as a business development company (“BDC”)

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

annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the

Our investment objective is

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

to a lesser extent, income from debt investments.

We invest principally in the equity securities of what we believe to be rapidly growing

venture capital-backed emerging companies.

We acquire our investments through direct investments in prospective portfolio companies, secondary

marketplaces for private companies, negotiations with selling stockholders, and through investments in special purpose vehicles (“SPVs”)

and investment funds that invest directly in the equity or debt of a single private issuer.

In addition, we may invest in private credit

and in the founders equity, founders warrants, venture capital investment funds, and private investment in public equity (“PIPE”)

transactions of special purpose acquisition companies (“SPACs”).

We may also invest on an opportunistic basis in select publicly

traded equity securities or certain non-U.S.

companies that otherwise meet our investment criteria, subject to applicable requirements

of the 1940 Act.

To the extent we make investments in private equity funds and hedge funds that are excluded from the definition of “investment

company” under the 1940 Act by Section 3(c)(1) or 3(c)(7) of the 1940 Act, we will limit such investments to no more than 15% of

our net assets.

In regard to the regulatory

requirements for BDCs under the 1940 Act, some of these investments may not qualify as investments in “eligible portfolio companies,”

and thus may not be considered “qualifying assets.” “Eligible portfolio companies” generally include U.S.

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

If at any time less than 70% of our gross

assets are comprised of qualifying assets, including as a result of an increase in the value of any non-qualifying assets or decrease

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

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

We would not be required, however, to dispose of any

non-qualifying assets in such circumstances.

Our investment philosophy is

based on a disciplined approach of identifying promising investments in high-growth, venture-backed companies across several key industry

themes which may include, among others, Software-as-a-Service, Artificial Intelligence Infrastructure & Applications, Consumer Goods

& Services, Education Technology, Logistics & Supply Chain, Financial Technology & Services, and SuRo Sports.

Our investment

decisions are based on a disciplined analysis of available information regarding each potential portfolio company’s business operations,

focusing on the portfolio company’s growth potential, the quality of recurring revenues, and path to profitability, as well as an

understanding of key market fundamentals.

Venture capital funds or other institutional investors have invested in the vast majority of

companies we evaluate.

We seek to deploy capital primarily

in the form of non-controlling equity and equity-related investments, including common stock, warrants, preferred stock and similar forms

of senior equity, which may or may not be convertible into a portfolio company’s common equity, and convertible debt securities

with a significant equity component.

Typically, our preferred stock investments are non-income producing, have different voting rights

than our common stock investments and are generally convertible into common stock at our discretion.

As our investment strategy is primarily

focused on equity positions, our investments generally do not produce current income and therefore we may be dependent on future capital

raising to meet our operating needs if no other source of liquidity is available.

We seek to create a low-turnover

portfolio that includes investments in companies representing a broad range of investment themes.

We formed in 2010 as a Maryland

corporation and operate as an internally managed, non-diversified closed-end management investment company.

Our investment activities

in inflation or an inflationary economic environment could adversely affect our portfolio

companies’ operating results, causing us to suffer losses in our portfolio;

rate volatility could adversely affect our results, particularly because we use leverage

as part of our investment strategy;

risks, uncertainties and other factors we identify in the sections entitled “Risk Factors”

in our quarterly reports on Form 10-Q, our annual report on Form 10-K, and in our other filings

with the SEC.

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

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

Important assumptions

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

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

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

These risks and uncertainties include

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

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

report on Form 10-Q.

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

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

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

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

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

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

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

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

We invest principally in the equity securities of what we believe

to be rapidly growing venture capital-backed emerging companies.

We acquire our investments through direct investments in prospective

portfolio companies, secondary marketplaces for private companies, negotiations with selling stockholders, and through investments in SPVs and investment funds that invest directly in the equity or debt of a single private

In addition, we may invest

in private credit and in the founders equity, founders warrants, venture capital investment funds, and private investment in public equity

(“PIPE”) transactions of special purpose acquisition companies (“SPACs”).

We may also invest on an opportunistic

basis in select publicly traded equity securities or certain non-U.S.

companies that otherwise meet our investment criteria, subject

to applicable requirements of the 1940 Act.

To the extent we make investments in private equity funds and hedge funds that are excluded

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

such investments to no more than 15% of our net assets.

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

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

generally include U.S.

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

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

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

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

We would not be required,

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

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

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

Consumer Goods & Services, Education Technology, Logistics & Supply Chain, Financial Technology & Services, and SuRo

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

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

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

Venture capital funds or other institutional

investors have invested in the vast majority of companies we evaluate.

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

preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company’s common equity,

and convertible debt securities with a significant equity component.

Typically, our preferred stock investments are non-income producing,

have different voting rights than our common stock investments and are generally convertible into common stock at our discretion.

our investment strategy is primarily focused on equity positions, our investments generally do not produce current income and therefore

we may be dependent on future capital raising to meet our operating needs if no other source of liquidity is available.

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

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

Our investment activities are supervised by our Board of Directors and managed by our executive officers and investments professionals,

all of which are our employees.

date of inception was January 6, 2011, which is the date we commenced development stage activities.

We commenced operations as a BDC

upon completion of our IPO in May 2011 and began our investment operations during the second quarter of 2011.

and effective March 12, 2019, our Board of Directors approved our internalization (the “Internalization”), and we began operating

as an internally managed non-diversified closed-end management investment company that has elected to be regulated as a BDC under the

Our Board of Directors approved the Internalization in order to better align the interests of our stockholders with its management.

As an internally managed BDC, we are managed by our employees, rather than the employees of an external investment adviser, thereby allowing

for greater transparency to stockholders through robust disclosure regarding our compensation structure.

As a result of the Internalization,

we no longer pay any fees or expenses under an investment advisory agreement or administration agreement, and instead pay the operating

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

discretionary bonuses and restricted stock grants.

and Investment Activity

Months Ended September 30, 2024

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

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

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

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

costs) as shown in the following table:

Supplying Demand, Inc.

(d/b/a Liquid

Preferred shares, Series F-1

Common shares

CW Opportunity 2 LP (1)

Membership Interest, Class A

ARK Type One Deep Ventures

Membership Interest, Class A

CoreWeave, Inc.

Common shares

Opportunity 2 LP is a special purpose vehicle (“SPV”) that is solely invested in the Series C Preferred Shares of CoreWeave,

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

through our investment in the Class A Interest of CW Opportunity

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

Equity of OpenAI Global, LLC.

We are invested in the Convertible Equity of OpenAI Global, LLC through our investment in the

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

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

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

Treasury bills)

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

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

Net Share Price (1)

Gain/(Loss) (2)

Nextdoor Holdings,

PSQ Holdings, Inc.

PublicSquare) - Warrants (4)

Architect Capital PayJoy SPV,

True Global Ventures 4 Plus Pte Ltd (6)

PSQ Holdings, Inc.

PublicSq.) - Public Common Shares (7)

Churchill Sponsor VII LLC

YouBet Technology, Inc.

(d/b/a FanPower)

OneValley, Inc.

(f/k/a NestGSV,

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

$ (14,064,042 )

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

fees on the sale(s), if applicable.

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

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

public common shares.

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

(d/b/a PublicSquare)

public warrants.

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

(6) On June 28, 2024, we received a return of capital distribution from our investment in True Global Ventures 4 Plus

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

(d/b/a PublicSquare)

public common shares.

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

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

September 20, 2024, SPBRX, INC.

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

and made a final distribution.

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

(d/b/a FanPower) following their

Months Ended September 30, 2023

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

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

The fair value, as of September 30, 2023, of all of our portfolio investments, excluding short-term U.S.

are supervised by our Board of Directors and managed by our executive officers and investments professionals, all of which are our employees.

Our date of inception was January

6, 2011, which is the date we commenced development stage activities.

We commenced operations as a BDC upon completion of our IPO in May

2011 and began our investment operations during the second quarter of 2011.

On and effective March 12, 2019,

our Board of Directors approved our Internalization, and we began operating as an internally managed non-diversified closed-end management

investment company that has elected to be regulated as a BDC under the 1940 Act.

Our Board of Directors approved the Internalization in

order to better align the interests of our stockholders with its management.

As an internally managed BDC, we are managed by our employees,

rather than the employees of an external investment adviser, thereby allowing for greater transparency to stockholders through robust

disclosure regarding our compensation structure.

As a result of the Internalization, we no longer pay any fees or expenses under an investment

advisory agreement or administration agreement, and instead pay the operating costs associated with employing investment management professionals

including, without limitation, compensation expenses related to salaries, discretionary bonuses and restricted stock grants.

Portfolio and Investment Activity

Three Months Ended March 31, 2025

The value of our investment portfolio

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

resulting from purchases of new and follow-on investments and the sales of existing investments.

The fair value as of March 31, 2025 of

all of our portfolio investments was $213,577,198.

During the three months ended

March 31, 2025, we funded investments in an aggregate amount of $1,303,010 (not including capitalized transaction costs) as shown in the

following table:

Portfolio Company

Transaction Date

Gross Payments

Orchard Technologies, Inc.

Senior Preferred shares, Series 1

Orchard Technologies, Inc.

Simple Agreement for Future Equity

During the three months ended

March 31, 2025, we capitalized fees of $4,568.

During the three months ended March 31, 2025, we did not exit or receive proceeds from any of our investments, and

realized a net loss on investments of $17,951 (including adjustments to amounts held in escrow receivable).

During the three months ended

March 31, 2025, we did not write-off any investments.

Three Months Ended March 31, 2024

The value of our investment portfolio

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

resulting from purchases of new and follow-on investments and the sales of existing investments.

The fair value, as of March 31, 2024,

of all of our portfolio investments, excluding short-term U.S.

Treasury bills, was $175,015,571.

the nine months ended September 30, 2023, we funded investments in an aggregate amount of $21,133,257 (not including capitalized transaction

costs or investments in short-term U.S.

During the three months ended

March 31, 2024, we funded investments in an aggregate amount of $9,999,996 (not including capitalized transaction costs or investments

in short-term U.S.

Treasury bills) as shown in the following table:

Orchard Technologies,

Preferred shares, Series 1

True Global Ventures 4 Plus

Limited Partner Fund Investment

Simple Agreement for Future Equity (SAFE)

ServiceTitan, Inc.

Common shares

FourKites, Inc.

Common shares

Shogun Enterprises, Inc.

Preferred shares, Series B-4

Stake Trade, Inc.

Prophet Exchange)

Simple Agreement for

Future Equity (SAFE)

January 13, 2023, we invested $2.0 million in Orchard Technologies, Inc.’s Series 1

Senior Preferred financing round.

As part of the transaction, we exchanged a portion of our

existing Series D Preferred shares investment for Series 1 Senior Preferred shares, Series

2 Senior Preferred shares, and Common shares.

Additionally, our previous investment in the

Simple Agreement for Future Equity was converted into additional Series 1 Senior Preferred

March 31, 2023, the previously unfunded capital commitment of $1.3 million was deemed fully

contributed in lieu of cash distributions.

On March 31, 2023, the full $2.0 million capital

commitment to True Global Ventures 4 Plus Fund LP had been called and funded.

July 12, 2023, we invested $0.5 million in Shogun Enterprises, Inc.

(d/b/a Hearth)’s

Series B-4 Preferred financing round.

As part of the transaction, the previous investment

in the Convertible Note was converted into Series B-3 Preferred shares.

Additionally, we

received Common Warrants as part of the transaction.

the nine months ended September 30, 2023, we capitalized fees of $33,676.

the nine months ended September 30, 2023, we exited or received proceeds from investments in the amount of $9,658,163, net of transaction

costs, and realized a net loss on investments of $14,542,137 (including adjustments to amounts held in escrow receivable) as shown in

following table:

Net Share Price (1)

Gain/(Loss) (2)

NewLake Capital Partners,

(f/k/a GreenAcreage Real Estate Corp.) (4)

Portfolio Company

Transaction Date

Gross Payments

Supplying Demand, Inc.

(d/b/a Liquid Death)

Preferred shares, Series F-1

During the three months ended

March 31, 2024, we capitalized fees of $3,938.

During the three months ended

March 31, 2024, we exited or received proceeds from investments in the amount of $318,316, net of transaction costs, and realized a net

loss on investments of $424,074 (including adjustments to amounts held in escrow receivable) as shown in following table:

Portfolio Company

Transaction Date

Average Net Share Price (1)

Realized Gain/(Loss) (2)

Nextdoor Holdings, Inc.

Rent the Runway, Inc.

Residential Homes for Rent,

LLC (d/b/a Second Avenue) (7)

True Global Ventures 4 Plus

(10,945,024 )

PSQ Holdings, Inc.

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

_________________________________

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

fees on the sale(s), if applicable.

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

of March 8, 2023, we had sold our remaining Kahoot!

ASA public common shares.

of September 30, 2023, we held 105,820 remaining NewLake Capital Partners, Inc.

public common

of September 30, 2023, we held 262,420 remaining Nextdoor Holdings, Inc.

public common shares.

of January 4, 2023, we had sold our remaining Rent the Runway, Inc.

(1) The average net share price is the net share price realized after deducting

all commissions and fees on the sale(s), if applicable.

(2) Realized gain/(loss) does not include adjustments to amounts held in escrow

(3) As of February 23, 2024, we had sold our remaining Nextdoor Holdings, Inc.

public common shares.

the nine months ended September 30, 2023, approximately $0.9 million was received from Residential

Homes for Rent, LLC (d/b/a Second Avenue) related to the 15% term loan due December 23, 2023.

Of the proceeds received, approximately $0.8 million repaid a portion of the outstanding

principal and the remaining was attributed to interest.

previously unfunded capital commitment of $1.3 million was deemed fully contributed in lieu

of cash distributions.

May 4, 2023, we abandoned our investment in Ozy Media, Inc.

During the nine months ended September 30, 2023, we wrote-off our investment in Ozy Media, Inc.

following our abandonment.

of Operations

of the Nine Months Ended September 30, 2024 and 2023

results for the three and nine months ended September 30, 2024 and 2023 are as follows:

Months Ended September 30,

Total Investment

(4) As of March 31, 2024, we held 2,296,037 remaining PSQ Holdings, Inc.

PublicSquare) warrants.

During the three months ended March 31, 2024, we did

not write-off any investments.

Results of Operations

Comparison of the Three Months Ended March 31,

2025 and 2024

Operating results for the three

months ended March 31, 2025 and 2024 are as follows:

Three Months Ended March 31,

Total Investment Income

Interest income

10 unchanged sentences

$ (3,222,902 )

$ (10,086,400 )

$ (10,695,531 )

Net realized loss on investments

(13,713,512 )

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

Net change in unrealized appreciation/(depreciation) of investments

(18,418,370 )

Net Change in Net Assets Resulting from Operations

$ (22,065,346 )

Realized loss on partial repurchase of 6.00%

Notes due December 30, 2026

Investment Income

Investment income

decreased to $499,094 for the three months ended March 31, 2025 from $1,528,091 for the three months ended March 31, 2024.

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

Treasury bills and a decrease in

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

following the redemption of our investment in June 2024.

Additional decreases were related to a decrease in interest income from

interest accruals of debt investments in Xgroup Holdings Limited (d/b/a Xpoint), and a decrease in dividend income from Aventine due

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

The decreases were offset by an increase in dividend income from CW Opportunity 2 LP during the three months ended March

31, 2025, relative to the three months ended March 31, 2024.

Operating Expenses

Total operating expenses

decreased to $4,160,863 for the three months ended March 31, 2025 from $4,750,993 for the three months ended March 31, 2024.

decrease in operating expense was primarily due to decreases in compensation expense and other expenses, offset by an increase in

professional fees and interest expense during the three months ended March 31, 2025, relative to the three months ended March 31,

Net Investment Loss

For the three months ended March

31, 2025, we recognized a net investment loss of $3,661,769, compared to a net investment loss of $3,222,902 for the three months ended

March 31, 2024.

The change between periods resulted from a decrease in total investment income and operating expenses during the three

months ended March 31, 2025, relative to the three months ended March 31, 2024.

Net Realized Loss on Investments

For the three months ended March

31, 2025, we recognized a net realized loss on our investments of $17,951, compared to a net realized loss of $424,074 for the three months

ended March 31, 2024.

The components of our net realized losses on portfolio investments for the three months ended March 31, 2025 and

2024, excluding short-term U.S.

Treasury bills and fluctuations in escrow receivables estimates, are reflected in the tables above, under

“—Portfolio and Investment Activity.”

Net Change in Unrealized Appreciation/(Depreciation)

of Investments

(13,769,932 )

Net Change in Net Assets

Resulting from Operations

$ (5,452,245 )

$ (38,168,774 )

income decreased to $888,717 for the three months ended September 30, 2024 from $1,465,746 for the three months ended September 30,

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

Treasury bills,

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

Additional decreases in interest

income were from Xgroup Holdings Limited (d/b/a Xpoint), Shogun Enterprises, Inc.

(d/b/a Hearth), and the repayment in full of the

Residential Homes for Rent, LLC (d/b/a Second Avenue) term loan as of December 26, 2023, as well as a decrease in dividend income from

NewLake Capital Partners, Inc.

(f/k/a GreenAcreage Real Estate Corp.) following our complete exit in December 2023.

The decreases

were offset by an increase in interest income received on cash, and an increase in PIK dividend income from CW Opportunity 2 LP during the three months ended September 30, 2024, relative to the

three months ended ended September 30, 2023.

income decreased to $3,444,161 for the nine months ended September 30, 2024 from $4,137,046 for the nine months ended September 30,

The net decrease between periods was primarily due to a decrease in interest income from short-term U.S.

Treasury bills,

Xgroup Holdings Limited (d/b/a Xpoint), and Shogun Enterprises, Inc.

(d/b/a Hearth), a repayment in full of the Residential Homes

for Rent, LLC (d/b/a Second Avenue) term loan as of December 26, 2023, and a decrease in dividend income from Aventine Property

Group and NewLake Capital Partners, Inc.

(f/k/a GreenAcreage Real Estate Corp.) following our complete exit in December 2023.

decrease was offset by an increase in interest income received on cash and an increase in PIK dividend income from CW Opportunity 2

LP during the nine months ended September 30, 2024, relative to the nine months ended September 30, 2023.

operating expenses decreased to $4,096,590 for the three months ended September 30, 2024 from $4,134,172 for the three months ended

September 30, 2023.

The decrease in operating expense was primarily due to decreases in compensation expense and interest expense,

offset by an increase in professional fees and directors’ fees during the three months ended September 30, 2024, relative to the

three months ended September 30, 2023.

operating expenses decreased to $13,530,561 for the nine months ended September 30, 2024 from $14,832,577 for the nine months ended

September 30, 2023.

The decrease in operating expense was primarily due to decreases in income tax expense related to blocker

corporations, professional fees, other expenses, and interest expense, offset by a slight increase in directors’ fees during the nine months ended

September 30, 2024, relative to the nine months ended September 30, 2023.

Investment Loss

the three months ended September 30, 2024, we recognized a net investment loss of $3,207,873, compared to a net investment loss of $2,668,426

for the three months ended September 30, 2023.

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

expenses during the three months ended September 30, 2024, relative to the three months ended September 30, 2023.

the nine months ended September 30, 2024, we recognized a net investment loss of $10,086,400, compared to a net investment loss of $10,695,531

for the nine months ended September 30, 2023.

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

expenses during the nine months ended September 30, 2024, relative to the nine months ended September 30, 2023.

Realized Loss on Investments

the three months ended September 30, 2024, we recognized a net realized loss on our investments of $13,713,512, compared to a net realized

loss of $1,461,281 for the three months ended September 30, 2023.

The components of our net realized losses on portfolio investments

for the three months ended September 30, 2024 and 2023, excluding short-term U.S.

Treasury bills and fluctuations in escrow receivables

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

the nine months ended September 30, 2024, we recognized a net realized loss on our investments of $14,167,198, compared to a net realized

loss of $14,542,137 for the nine months ended September 30, 2023.

The components of our net realized losses on portfolio investments

for the nine months ended September 30, 2024 and 2023, excluding short-term U.S.

Treasury bills and fluctuations in escrow receivables

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

Change in Unrealized Appreciation/(Depreciation) of Investments

the three months ended September 30, 2024 and 2023, we had a net change in unrealized appreciation/(depreciation) of $11,614,384 and

$29,323,067, respectively.

The following tables summarize, by portfolio company, the significant changes in unrealized appreciation/(depreciation)

of our investment portfolio for the three months ended September 30, 2024 and 2023.

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

Change in Unrealized Appreciation/(Depreciation) For the Three Months Ended September 30, 2023

OneValley, Inc.

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

Learneo, Inc.

(f/k/a Course Hero,

(f/k/a GSV Sustainability

Partners, Inc.) (1)

For the three months ended March

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

For the three months ended March 31, 2024, we had

a net change in unrealized appreciation/(depreciation) of $(18,418,370).

The following tables summarize, by portfolio company, the significant

changes in unrealized appreciation/(depreciation) of our investment portfolio for the three months ended March 31, 2025 and 2024.

Portfolio Company

Net Change in Unrealized Appreciation/(Depreciation) For the Three Months Ended March 31, 2025

Portfolio Company

Net Change in Unrealized Appreciation/(Depreciation) For the Three Months Ended March 31, 2024

ARK Type One Deep Ventures Fund LLC

ServiceTitan, Inc.

Forge Global, Inc.

CW Opportunity 2 LP

Orchard Technologies, Inc.

Aspiration Partners, Inc.

Colombier Sponsor II LLC

FourKites, Inc.

Blink Health, Inc.

Forge Global, Inc.

PSQ Holdings, Inc.

PublicSquare) (1)

(d/b/a PublicSquare)

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

Locus Robotics Corp.

StormWind, LLC

Learneo, Inc.

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

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

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

accrued unrealized appreciation/(depreciation), as applicable.

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

was less than $1.0 million for the three months ended September 30, 2024 and 2023.

the nine months ended September 30, 2024 and 2023, we had a net change in unrealized appreciation/(depreciation) of $(13,769,932) and

$39,427,513, respectively.

The following tables summarize, by portfolio company, the significant changes in unrealized appreciation/(depreciation)

of our investment portfolio for the nine months ended September 30, 2024 and 2023.

Change in Unrealized

Appreciation/(Depreciation)

For the Nine Months Ended

Change in Unrealized

Appreciation/(Depreciation)

For the Nine Months Ended

OneValley, Inc.

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

PSQ Holdings, Inc.

(d/b/a PublicSq.)

(f/k/a GSV Sustainability

Partners, Inc.) (1)

(12,999,032 )

Learneo, Inc.

1 unchanged sentence

Blink Health, Inc.

Ozy Media, Inc .(1)

Nextdoor Holdings, Inc.

CoreWeave, Inc.

FourKites, Inc.

Shogun Enterprises, Inc.

(d/b/a Hearth)

ServiceTitan, Inc.

CW Opportunity 2 LP

Varo Money, Inc.

Orchard Technologies, Inc.

Forge Global, Inc.

Aspiration Partners, Inc.

StormWind, LLC

PSQ Holdings, Inc.

PublicSquare) (1)

Learneo, Inc.

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

$ (18,418,370 )

_______________________

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

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

accrued unrealized appreciation/(depreciation), as applicable.

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

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

Notes Due 2026 - Note Repurchase Program

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

which allows us to repurchase up to 46.67%, or $35.0 million in aggregate principal amount, of our 6.00% Notes due 2026 through open

market purchases, including block purchases, in such manner as will comply with the provisions of the 1940 Act and the Exchange Act.

During the three months ended September 30, 2024, we repurchased and retired $25.3 million of aggregate principal amount of the 6.00%

Notes due 2026.

As of September 30, 2024, the dollar value of 6.00% Notes due 2026 that remained available to be purchased under

the Note Repurchase Program was approximately $9.7 million.

Refer to “Note 10—Debt

Capital Activities” to our Condensed Consolidated Financial Statements as of September 30, 2024 for more information regarding the

6.00% Notes due 2026.

Between October

1, 2024 and October 4, 2024, we repurchased an additional 201,446 units of the 6.00% Notes due 2026 under the Note Repurchase Program.

As of November 7, 2024, the aggregate principal dollar amount of 6.00% Notes due 2026 that may yet be repurchased by us under the Note

Repurchase Program is approximately $4.7 million.

Convertible Notes due 2029

August 14, 2024, we issued $25.0 million aggregate principal amount of the 6.50% Convertible Notes due 2029 to a private purchaser (the “Purchaser”), which bear interest at

a rate of 6.50% per year, payable quarterly in arrears on March 30, June 30, September 30, and December 30 of each year, commencing

on September 30, 2024.

We received $24.3 million in proceeds from the issuance, net of underwriting discounts and commissions.

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

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

Convertible Notes due 2029 will be convertible into shares of our common stock at the Purchaser’s sole discretion at an

initial conversion rate of 129.0323 shares of common stock per $1,000 principal amount of the 6.50% Convertible Notes due 2029,

subject to adjustment as provided in the Notes Purchase Agreement.

to “Note 10—Debt Capital Activities” to our Condensed Consolidated Financial Statements as of September 30, 2024 for

more information regarding the 6.50% Convertible Notes due 2029.

October 9, 2024, we issued and sold $5.0 million in aggregate principal amount of additional 6.50% Convertible Notes due 2029 (the

“Additional Notes”).

The Additional Notes are treated as a single series with our initial issuance of $25.0 million in

aggregate principal amount of the outstanding 6.50% Convertible Notes due 2029 (the “Initial Notes”) and have the same

terms as the Initial Notes.

The Additional Notes are fungible and rank equally with the Initial Notes.

Upon issuance of the

Additional Notes, the outstanding aggregate principal amount of our 6.50% Convertible Notes due 2029 became $30.0

Share Repurchase Program

On October 29, 2024, our Board

of Directors authorized an extension of the Share Repurchase Program until the earlier of (i) October 31, 2025 or (ii) the repurchase

of $64.3 million in aggregate amount of our common stock.

The timing and number of shares

to be repurchased pursuant to the Share Repurchase Program will depend on a number of factors, including market conditions and alternative

investment opportunities.

The Share Repurchase Program may be suspended, terminated or modified at any time for any reason and does not

obligate us to acquire any specific number of shares of its common stock.

Under the Share Repurchase Program, we may repurchase our outstanding

common stock in the open market, provided that we comply with the prohibitions under our insider trading policies and procedures and the

applicable provisions of the 1940 Act and the Exchange Act.

As of November 7, 2024, the dollar value of shares that remained available

to be purchased under the Share Repurchase Program was approximately $25.0 million.

refer to “Note 12—Subsequent Events” to our Condensed Consolidated Financial Statements as of September 30, 2024 for

details regarding activity in our investment portfolio from October 1, 2024 through November 7, 2024.

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

Investments in private companies

are generally subject to satisfaction of applicable closing conditions.

In the case of secondary market transactions, such closing conditions

may include approval of the issuer, waiver or failure to exercise rights of first refusal by the issuer and/or its stockholders and termination

rights by the seller or us.

Equity investments made through the secondary market may involve making deposits in escrow accounts until

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

and Capital Resources

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

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

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

In addition, on December 17, 2021,

we issued $75.0 million aggregate principal amount of 6.00% Notes due December 30, 2026 (the “6.00% Notes due 2026”), of

which $49.7 million remain outstanding, and on August 14, 2024, we issued $25.0 million aggregate principal amount of 6.50% Convertible

Notes due August 14, 2029 (the “Convertible Notes”), all of which remain outstanding.

For additional information, see below

and “Note 10—Debt Capital Activities” to our Condensed Consolidated Financial Statements as of September 30, 2024.

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

For the nine months

ended September 30, 2024 and 2023, our operating expenses including interest payments on our debt obligations were $13,530,561 and $14,832,577,

respectively.

Cash Reserves

and Liquid Securities

Cash Equivalents:

represents investments for which individual changes in unrealized appreciation/(depreciation) was less than $1.0 million for the

three months ended March 31, 2025 and 2024.

Liquidity and Capital Resources

Our liquidity and capital resources

are generated primarily from the sales of our investments and the net proceeds from public offerings of our equity and debt securities,

including pursuant to our continuous at-the-market offering of shares of our common stock as discussed below under “Equity Issuances

and Debt Capital Activities — At-the-Market Offering”.

In addition, on December 17, 2021, we issued $75.0 million aggregate

principal amount of our 6.00% Notes due 2026 (the “6.00% Notes due 2026”),

of which $39.7 million remain outstanding as of March 31, 2025.

On August 14, 2024, we issued $25.0 million in aggregate principal amount

of 6.50% Convertible Notes due 2029, and on October 9, 2024 and January 16, 2025, we issued $5.0 million and $5.0 million, respectively,

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

For additional information,

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

Activities” to our Condensed Consolidated Financial Statements as of March 31, 2025.

Our primary uses of cash are

to make investments, pay our operating expenses, and make distributions to our stockholders.

For the three months ended March 31,

2025 and 2024, our operating expenses, including interest payments on our debt obligations, were $4,160,863 and $4,750,993, respectively.

Cash Reserves and Liquid Securities

March 31, 2025

December 31, 2024

Securities of publicly traded portfolio companies:

Unrestricted securities (1)

to other sales restrictions(3)

Securities of publicly

traded portfolio companies

Cash Reserves and Liquid Securities

Subject to other sales restrictions(2)

Securities of publicly traded portfolio companies

Total Cash Reserves and Liquid Securities

_______________________

of short-term U.S.

Treasury bills.

(2) “Unrestricted

securities” represents common stock and warrants of our publicly traded portfolio companies

that are not currently subject to any restrictions upon sale.

(1) “Unrestricted securities” represents common stock and warrants

of our publicly traded portfolio companies that are not currently subject to any restrictions upon sale.

We may incur losses.

(3) Securities

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

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

to certain lock-up restrictions.

the nine months ended September 30, 2024, cash increased to $32,737,114 from $28,178,352 at the beginning of the year.

in cash was primarily due to maturity of our investments in short-term U.S.

Treasury bills, the sale or exit of investments, and

other investment income received, offset by the purchase of new investments, repurchase of our common stock pursuant to a modified

“Dutch Auction” tender offer (the “Modified Dutch Auction Tender Offer”), payment of our operating expenses,

and payment of interest on the 6.00% Notes due 2026 and 6.50% Convertible Notes due 2029.

For additional information relating to the

Modified Dutch Auction Tender Offer, see “Modified Dutch Auction Tender Offer” below and “Note 5 - Common

Stock” to our Condensed Consolidated Financial Statements as

of September 30, 2024.

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

Consistent with past and current practices, we will

continue to evaluate our overall liquidity position and take proactive steps to maintain the appropriate liquidity position based upon

the current circumstances.

summary of our significant contractual payment obligations as of September 30, 2024 is as follows:

Due By Period (in millions)

(2) Securities of publicly traded portfolio companies “subject to other

sales restrictions” represents common stock of our publicly traded portfolio companies that are currently subject to certain lock-up

restrictions.

During the three months ended

March 31, 2025, cash decreased to $16,180,542 from $20,035,640 at the beginning of the year.

The decrease in cash was primarily due to

the purchase of new investments, payment of our operating expenses, and payment of interest on the 6.00% Notes due 2026 and 6.50% Convertible

Notes due 2029.

The decrease was offset by investment income received.

Currently, we believe we have

ample liquidity to support our near-term capital requirements.

Consistent with past and current practices, we will continue to evaluate

our overall liquidity position and take proactive steps to maintain the appropriate liquidity position based upon the current circumstances.

Contractual Obligations

A summary of our significant

contractual payment obligations as of March 31, 2025 is as follows:

Payments Due By Period (in millions)

6.00% Notes due 2026 (1)

6.50% Convertible Notes due 2029 (2)

Operating lease liability

the principal balance payable to investors for the 6.00% Notes due 2026 as of September 30,

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

Financial Statements as of September 30, 2024 for more information.

(2) Reflects the principal balance payable to investors for the 6.50% Convertible Notes due 2029 as of September 30,

Refer to “Note 10—Debt Capital Activities” in our Condensed Consolidated Financial Statements as of September

30, 2024 for more information.

_______________________

(1) Reflects the principal balance payable for the 6.00% Notes due 2026 as of

March 31, 2025.

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

March 31, 2025 for more information.

(2) Reflects the principal balance payable for the 6.50% Convertible Notes due

2029 as of March 31, 2025.

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

as of March 31, 2025 for more information.

Share Repurchase Program

During the three months ended

March 31, 2025, we did not repurchase any shares of our common stock under the discretionary open-market Share Repurchase Program.

the three months ended March 31, 2024, we did not repurchase any shares of our common stock under the discretionary open-market Share

Repurchase Program.

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

open-market share repurchase program (the “Share Repurchase Program”).

During the three and nine months ended September

30, 2023, we repurchased 186,493 shares of our common stock under the Share Repurchase Program.

As of September 30, 2024, the dollar

value of shares that remained available to be purchased under the Share Repurchase Program was approximately $20.7 million.

August 7, 2023, our Board of Directors authorized an extension of, and an increase in the amount of shares of our common stock that

may be repurchased under the discretionary Share Repurchase Program until the earlier of (i) October 31, 2024 or (ii)

the repurchase of $60.0 million in aggregate amount of our common stock.

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

under our insider trading policies and procedures and the applicable provisions of the 1940 Act and the Securities Exchange Act of 1934,

as amended (the “Exchange Act”) and the rules promulgated thereunder.

For more information on the Share Repurchase Program,

see “Note 5—Common Stock” to our Condensed Consolidated Financial Statements as of September 30, 2024.

Dutch Auction Tender Offer

February 20, 2024, we commenced the Modified Dutch Auction Tender Offer to purchase up to 2,000,000 shares of our common stock from our

stockholders, which expired on April 1, 2024.

In accordance with the terms of the Modified Dutch Auction Tender Offer, we selected the

lowest price per share of not less than $4.00 per share and not greater than $5.00 per share.

to the Modified Dutch Auction Tender Offer, we repurchased 2,000,000 shares, representing 7.9% of our then-outstanding shares, on or

about April 5, 2024 at a price of $4.70 per share.

We used available cash to fund the purchase of our shares of common stock in the Modified

Dutch Auction Tender Offer and to pay for all related fees and expenses.

Sheet Arrangements

of September 30, 2024 and December 31, 2023, we had no off-balance sheet arrangements, including any risk management of commodity pricing

or other hedging practices.

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

Issuances and Debt Capital Activities

At-the-Market

July 29, 2020, we entered into an At-the-Market Sales Agreement, dated July 29, 2020 (as amended, the “Sales Agreement”),

with BTIG, LLC, JMP Securities LLC, and Ladenburg Thalmann & Co., Inc.

As of March 31, 2025, the dollar value of shares that remained available to be purchased under the Share Repurchase

Program was approximately $25.0 million.

Currently, the Share Repurchase Program is authorized until the earlier of (i) October 31, 2025

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

Under the Share Repurchase Program,

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

policies and procedures and the applicable provisions of the 1940 Act and the Securities Exchange Act of 1934, as amended (the “Exchange

Act”), and the rules promulgated thereunder.

For more information on the Share Repurchase Program, see “Note 5—Common

Stock” to our Condensed Consolidated Financial Statements as of March 31, 2025.

Off-Balance Sheet Arrangements

As of March 31, 2025 and December

31, 2024, we had no off-balance sheet arrangements, including any risk management of commodity pricing or other hedging practices.

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

Equity Issuances and Debt Capital Activities

At-the-Market Offering

On July 29, 2020, we established

an “at-the-market” offering (the “ATM Program”) pursuant to an At-the-Market Sales Agreement dated July 29, 2020 (as

amended on September 23, 2020 and November 8, 2024, the “Sales Agreement”) with BTIG LLC, Citizens JMP Securities, LLC (f/k/a

JMP Securities LLC), Ladenburg Thalmann & Co.

and Barrington Research Associates, Inc.

(collectively, the “Agents”).

Under the Initial

Sales Agreement, we may, but have no obligation to, issue and sell up to $150.0 million in aggregate amount of shares of our common stock

(the “Shares”) from time to time through the Agents or to them as principal for their own account (the “ATM Program”).

We intend to use the net proceeds from the ATM Program to make investments in portfolio companies in accordance with our investment objective

and strategy and for general corporate purposes.

the three and nine months ended September 30, 2024, we did not issue or sell Shares under the ATM program.

As of September 30, 2024,

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

During the three

and nine months ended September 30, 2023, we did not issue or sell Shares under the ATM program.

to “Note 5—Common Stock” to our Condensed Consolidated Financial Statements as of September 30, 2024 for more information

regarding the ATM Program.

Under the Sales Agreement, we may, but have no obligation to, issue and sell up to $150.0 million in aggregate amount of shares of our

common stock (the “Shares”) from time to time through the Agents or to them as principal for their own account.

use the net proceeds from the ATM Program to make investments in portfolio companies in accordance with our investment objective and strategy

and for general corporate purposes.

During the three months ended

March 31, 2025 and 2024, we did not issue or sell Shares under the ATM Program.

As of March 31, 2025 and March 31, 2024, up to approximately

$98.8 million in aggregate amount of the Shares remain available for sale under the ATM Program.

Refer to “Note 5—Common

Stock” to our Condensed Consolidated Financial Statements as of March 31, 2025 for more information regarding the ATM Program.

6.00% Notes due 2026 - Note Repurchase Program

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

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

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

We received approximately

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

The 6.00% Notes

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

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

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

On December 17, 2021, we issued

$ 70.0 million aggregate principal amount of 6.00 % Notes due 2026, which bear interest at a fixed rate of 6.00% per year, payable quarterly

in arrears on March 30, June 30, September 30, and December 30 of each year, commencing on March 30, 2022.

On December 21, 2021,

we issued an additional $5.0 million aggregate principal amount of 6.00% Notes due 2026.

We received approximately $73.0 million in proceeds

from the offering, net of underwriting discounts and commissions and other offering expenses.

The 6.00% Notes due 2026 have a maturity

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

We have the right to redeem the 6.00%

Notes due 2026, in whole or in part, at any time or from time to time, on or after December 30, 2024 at a redemption price of 100% of

the aggregate principal amount thereof plus accrued and unpaid interest.

On August 6, 2024, our Board

of Directors approved the Note Repurchase Program, which allows us to repurchase

up to 46.67%, or $35.0 million in aggregate principal amount, of our 6.00% Notes due 2026 through open market purchases, including block

of Directors approved a discretionary note repurchase program (the “Note Repurchase Program”) which allows us to repurchase

up to $35.0 million of our 6.00% Notes due 2026 through open market purchases, including block

purchases, in such manner as will comply with the provisions of the 1940 Act and the Exchange Act.

During the three months ended September

30, 2024, we repurchased and retired $25.3 million of aggregate principal amount of the 6.00% Notes due 2026.

As of September 30, 2024,

the dollar value of 6.00% Notes due 2026 that remained available to be purchased under the Note Repurchase Program was approximately $9.7

Refer to “Note

10—Debt Capital Activities” to our Condensed Consolidated Financial Statements as of September 30, 2024 for more information

regarding the 6.00% Notes due 2026.

During the year ended December 31,

2024, the Company repurchased and retired $30.3 million of aggregate principal amount of the 6.00% Notes due 2026.

During the three months

ended March 31, 2025, the Company repurchased and retired $5.0 million of aggregate principal amount of the 6.00% Notes due 2026, resulting

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

Refer to “Note 10—Debt

Capital Activities” to our Condensed Consolidated Financial Statements as of March 31, 2025 for more information regarding the 6.00%

Notes due 2026.

6.50% Convertible Notes due 2029

August 14, 2024, we issued $25.0 million aggregate principal amount of the 6.50% Convertible Notes due 2029 to the Purchaser, which bear interest at

a rate of 6.50% per year, payable quarterly in arrears on March 30, June 30, September 30, and December 30 of each year, commencing

on September 30, 2024.

On August 14, 2024, we issued

$25.0 million aggregate principal amount of the 6.50% Convertible Notes due 2029 to a private purchaser (the “Purchaser”), which

bear interest at a rate of 6.50% per year, payable quarterly in arrears on March 30, June 30, September 30, and December 30 of each year,

commencing on September 30, 2024.

We received $24.3 million in proceeds from the issuance, net of underwriting discounts and commissions.

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

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

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

initial conversion rate of 129.0323 shares of common stock per $1,000 principal amount of the 6.50% Convertible Notes due 2029,

subject to adjustment as provided in the Notes Purchase Agreement.

to “Note 10—Debt Capital Activities” to our Condensed Consolidated Financial Statements as of September 30, 2024 for more

information regarding the 6.50% Convertible Notes due 2029.

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

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

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

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

to the Notes Purchase Agreement, on October 9, 2024, we issued $5.0 million of Additional Notes to the Purchaser, and on January 16, 2025,

we issued an additional $5.0 million of Additional Notes to the Purchaser, which Additional Notes are treated as a single series with

the initial issuance of the 6.50% Convertible Notes due 2029.

The 6.50% Convertible Notes due 2029 mature on August 14, 2029, unless previously

repurchased, redeemed or converted in accordance with their terms.

We do not have the right to redeem the 6.50% Convertible Notes due

2029 prior to August 6, 2027.

The 6.50% Convertible Notes due

2029 are convertible into shares of our common stock at the Purchaser’s sole discretion at an initial conversion rate of 129.0323

shares of common stock per $1,000 principal amount of the 6.50% Convertible Notes due 2029, subject to adjustment as provided in the Notes

Purchase Agreement.

Refer to “Note 10—Debt

Capital Activities” to our Condensed Consolidated Financial Statements as of March 31, 2025 for more information regarding the 6.50%

Convertible Notes due 2029.

Distributions

timing and amount of our distributions, if any, will be determined by our Board of Directors and will be declared out of assets legally

available for distribution.

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

that we have declared since our formation through September 30, 2024.

The timing and amount of our

distributions, if any, will be determined by our Board of Directors and will be declared out of assets legally available for distribution.

The following table lists the distributions, including dividends and returns of capital, if any, per share that we have declared since

our formation through March 31, 2025.

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

Date Declared

Amount per Share

November 4, 2015 (1)

40 unchanged sentences

March 8, 2022 (15)

March 25, 2022

April 15, 2022

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

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

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

As a result of stockholder

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

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

as cash of $26,358,885.

The number of shares of common stock comprising the stock portion

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

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

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

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

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

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

realized gains.

___________________

(1) The distribution was paid in cash or shares of our common stock at the election of stockholders, although

the total amount of cash distributed to all stockholders was limited to approximately 50% of the total distribution to be paid to all

stockholders.

As a result of stockholder elections, the distribution consisted of 2,860,903 shares of common stock issued in lieu of cash,

or approximately 14.8% of our outstanding shares prior to the distribution, as well as cash of $26,358,885.

The number of shares of common

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

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

None of the $2.76 per share distribution represented

a return of capital.

(2) Of the total distribution of $887,240 on August 24, 2016, $820,753 represented a distribution from

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

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

None of the distribution represented a return of capital.

of the $2,107,709 distribution paid on January 15, 2020 represented a distribution from realized

(4) All of the $2,107,709 distribution paid on January 15, 2020 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

of the $2,516,452 distribution paid on August 25, 2020 represented a distribution from realized

(5) All of the $2,516,452 distribution paid on August 25, 2020 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

of the $5,071,326 distribution paid on October 20, 2020 represented a distribution from realized

(6) All of the $5,071,326 distribution paid on October 20, 2020 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

of the $4,978,504 distribution paid on November 30, 2020 represented a distribution from

realized gains.

(7) All of the $4,978,504 distribution paid on November 30, 2020 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

of the $4,381,084 distribution paid on January 15, 2021 represented a distribution from realized

(8) All of the $4,381,084 distribution paid on January 15, 2021 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

of the $4,981,131 distribution paid on February 19, 2021 represented a distribution from

realized gains.

(9) All of the $4,981,131 distribution paid on February 19, 2021 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

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

(10) All of the $6,051,304 distribution paid on April 15, 2021 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

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

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

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

As a result of stockholder

elections, the distribution consisted of 2,335,527 shares of common stock issued in lieu

of cash, or approximately 9.6% of our outstanding shares prior to the distribution, as well

as cash of $29,987,589.

The number of shares of common stock comprising the stock portion

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

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

(11) The distribution was paid in cash or shares of our common stock

at the election of stockholders, although the total amount of cash distributed to all stockholders was limited to approximately 50% of

the total distribution to be paid to all stockholders.

As a result of stockholder elections, the distribution consisted of 2,335,527

shares of common stock issued in lieu of cash, or approximately 9.6% of our outstanding shares prior to the distribution, as well as

cash of $29,987,589.

The number of shares of common stock comprising the stock portion was calculated based on a price of $13.07 per

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

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

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

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

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

As a result of stockholder

elections, the distribution consisted of 2,225,193 shares of common stock issued in lieu

of cash, or approximately 8.4% of our outstanding shares prior to the distribution, as well

as cash of $29,599,164.

The number of shares of common stock comprising the stock portion

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

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

(12) The distribution was paid in cash or shares of our common stock

at the election of stockholders, although the total amount of cash distributed to all stockholders was limited to approximately 50% of

the total distribution to be paid to all stockholders.

As a result of stockholder elections, the distribution consisted of 2,225,193

shares of common stock issued in lieu of cash, or approximately 8.4% of our outstanding shares prior to the distribution, as well as

cash of $29,599,164.

The number of shares of common stock comprising the stock portion was calculated based on a price of $13.55 per

share, which equaled the average of the volume weighted-average trading price per share of our common stock on August 11, 12, and 13,

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

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

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

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

As a result of stockholder

elections, the distribution consisted of 2,170,807 shares of common stock issued in lieu

of cash, or approximately 7.5% of our outstanding shares prior to the distribution, as well

as cash of $28,494,812.

The number of shares of common stock comprising the stock portion

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

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

(13) The distribution was paid in cash or shares of our common stock

at the election of stockholders, although the total amount of cash distributed to all stockholders was limited to approximately 50% of

the total distribution to be paid to all stockholders.

As a result of stockholder elections, the distribution consisted of 2,170,807

shares of common stock issued in lieu of cash, or approximately 7.5% of our outstanding shares prior to the distribution, as well as

cash of $28,494,812.

The number of shares of common stock comprising the stock portion was calculated based on a price of $13.39 per

share, which equaled the average of the volume weighted-average trading price per share of our common stock on November 11, 12, and 13,

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

of the $23,338,915 distribution paid on January 14, 2022 represented a distribution from

realized gains.

(14) All of the $23,338,915 distribution paid on January 14, 2022 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

of the $3,441,824 distribution paid on April 15, 2022 represented a distribution from realized

(15) All of the $3,441,824 distribution paid on April 15, 2022 represented

a distribution from realized gains.

None of the distribution represented a return of capital.

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

As a consequence, we do not anticipate

that we will pay distributions on a quarterly basis or become a predictable distributor of distributions, and we expect that our distributions,

if any, will be much less consistent than the distributions of other BDCs that primarily make debt investments.

If there are earnings

or realized capital gains to be distributed, we intend to declare and pay a distribution at least annually.

The amount of realized capital

gains available for distribution to stockholders will be impacted by our tax status.

current intention is to make any future distributions out of assets legally available therefrom in the form of additional shares of our

common stock under our dividend reinvestment plan, except in the case of stockholders who elect to receive dividends and/or long-term

capital gains distributions in cash.

Under the dividend reinvestment plan, if a stockholder owns shares of common stock registered in

its own name, the stockholder will have all cash distributions (net of any applicable withholding) automatically reinvested in additional

shares of common stock unless the stockholder opts out of our dividend reinvestment plan by delivering a written notice to our dividend

paying agent prior to the record date of the next dividend or distribution.

Any distributions reinvested under the plan will nevertheless

be treated as received by the U.S.

stockholder for U.S.

We intend to focus on making

equity investments from which we will derive primarily capital gains.

As a consequence, we do not anticipate that we will pay distributions

on a quarterly basis or become a predictable distributor of distributions, and we expect that our distributions, if any, will be much

less consistent than the distributions of other BDCs that primarily make debt investments.

If there are earnings or realized capital gains

to be distributed, we intend to declare and pay a distribution at least annually.

The amount of realized capital gains available for distribution

to stockholders will be impacted by our tax status.

Our current intention is to

make any future distributions out of assets legally available therefrom in the form of additional shares of our common stock under our

dividend reinvestment plan (“DRIP”), except in the case of stockholders who elect to receive dividends and/or long-term capital

gains distributions in cash.

Under the DRIP, if a stockholder owns shares of common stock registered in its own name, the stockholder

will have all cash distributions (net of any applicable withholding) automatically reinvested in additional shares of common stock unless

the stockholder opts out of our DRIP by delivering a written notice to our dividend paying agent prior to the record date of the next

dividend or distribution.

Any distributions reinvested under the plan will nevertheless be treated as received by the U.S.

federal income tax purposes, although no cash distribution has been made.

a result, if a stockholder does not elect to opt out of the dividend reinvestment plan, it will be required to pay applicable federal,

state and local taxes on any reinvested dividends even though such stockholder will not receive a corresponding cash distribution.

that hold shares in the name of a broker or financial intermediary should contact the broker or financial intermediary regarding any

election to receive distributions in cash.

long as we qualify and maintain our tax treatment as a RIC, we generally will not be subject to U.S.

federal and state income taxes on

any ordinary income or capital gains that we distribute at least annually to our stockholders as dividends.

Rather, any tax liability

related to income earned by the RIC will represent obligations of our investors and will not be reflected in our condensed consolidated

financial statements.

As a result, if a stockholder does not elect to opt

out of the DRIP, it will be required to pay applicable federal, state and local taxes on any reinvested dividends even though such stockholder

will not receive a corresponding cash distribution.

Stockholders that hold shares in the name of a broker or financial intermediary should

contact the broker or financial intermediary regarding any election to receive distributions in cash.

So long as we qualify as a RIC,

we generally will not be subject to U.S.

federal and state income taxes on any ordinary income or capital gains that we distribute at

least annually to our stockholders as dividends.

To the extent all our ordinary income and capital gains are timely distributed to our

stockholders as dividends, any tax liability related to income earned by the RIC will represent obligations of our investors and will

not be reflected in our consolidated financial statements.

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

Federal and State Income Taxes ”

and “Note 9—Income Taxes” to our Condensed Consolidated Financial Statements as of September 30, 2024 for more information.

The Taxable Subsidiaries included in our Condensed Consolidated Financial Statements are taxable subsidiaries, regardless of whether

we are taxed as a RIC.

These taxable subsidiaries are not consolidated for income tax purposes and may generate income tax expenses as

a result of their ownership of the portfolio companies.

Such income tax expenses and deferred taxes, if any, will be reflected in our

condensed consolidated financial statements.

Accounting Estimates and Policies

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

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

the effects of matters that are inherently uncertain.

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

estimates that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements

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

It is likely that changes in these estimates will

occur in the near term.

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

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

2024 for further detail regarding our critical accounting policies and recently issued or adopted accounting pronouncements.

Related-Party

“Note 3—Related-Party Arrangements” to our Condensed Consolidated Financial Statements as of September 30, 2024 for

more information.

and State Income Taxes ” and “Note 9—Income Taxes” to our Consolidated Financial Statements as of March 31,

2025 for more information.

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

federal income

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

The Taxable Subsidiaries are not consolidated

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

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

Critical Accounting Estimates and Policies

Critical accounting policies

and practices are the policies that are both most important to the portrayal of our financial condition and results, and require management’s

most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are

inherently uncertain.

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

amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain

revenues and expenses during the reporting period.

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

Our estimates

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

See “Note 2—Significant

Accounting Policies” to our Condensed Consolidated Financial Statements as of March 31, 2025 for further detail regarding our critical

accounting policies and recently issued or adopted accounting pronouncements.

Related-Party Transactions

See “Note 3—Related-Party

Arrangements” to our Condensed Consolidated Financial Statements as of March 31, 2025 for more information.

Recent Developments

Portfolio Activity

Please refer to “Note 12—Subsequent

Events” to our Condensed Consolidated Financial Statements as of March 31, 2025 for details regarding activity in our investment

portfolio from April 1, 2025 through May 6, 2025.

We are frequently in negotiations

with various private companies with respect to investments in such companies.

Investments in private companies are generally subject to

satisfaction of applicable closing conditions.

In the case of secondary market transactions, such closing conditions may include approval

of the issuer, waiver or failure to exercise rights of first refusal by the issuer and/or its stockholders and termination rights by the

seller or us.

Equity investments made through the secondary market may involve making deposits in escrow accounts until the applicable

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

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis