What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-03-04 compared with 2024-03-05 · 567 added, 775 removed, 1535 unchanged (47% of the section changed)

27 unchanged sentences

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Such procedures also included confirmation of investments owned as of December 31, 2023, by correspondence with custodians, agents, or portfolio companies, or by other appropriate auditing procedures where replies were not received.

Such procedures also included confirmation of investments owned as of December 31, 2024 by correspondence with the custodians, agent banks, portfolio companies, or by other appropriate auditing procedures where replies were not received.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Accompanying Supplemental Information

We have also previously audited, in accordance with the standards of the PCAOB, the consolidated statements of assets and liabilities of the Company, including the consolidated schedules of investments, as of December 31, 2022, 2021 and 2020, and the related consolidated statements of operations, changes in net assets, and cash flows for the years ended December 31, 2021 and 2020 (none of which is presented herein), and we expressed unqualified opinions on those consolidated financial statements.

The senior securities information included in Part II, Item 5 of the Annual Report on Form 10-K of the Company as of December 31, 2024, under the caption “Senior Securities” (the Senior Securities Table), has been subjected to audit procedures performed in conjunction with the audits of the Company’s respective consolidated financial statements.

The Senior Securities Table is the responsibility of the Company’s management.

Our audit procedures included determining whether the Senior Securities Table reconciles to the respective consolidated financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Senior Securities Table.

In forming our opinion on the Senior Securities Table, we evaluated whether the Senior Securities Table, including its form and content, is presented in conformity with the instructions to Form N-2.

In our opinion, the Senior Securities Table is fairly stated, in all material respects, in relation to the respective consolidated financial statements as a whole.

Critical Audit Matter

11 unchanged sentences

We evaluated the design of certain internal controls related to the fair value of Portfolio Company Investments using unobservable inputs.

This included controls related to the development of the discount rates and earnings metric multiples used in the discounted cash

flows and market approach valuation techniques, respectively.

This included controls related to the development of the discount rates and earnings metric multiples used in the discounted cash flows and market approach valuation techniques, respectively.

For a selection of Portfolio Company Investments, we compared relevant data elements used by the Company to derive the discount rates and earnings metric multiples to underlying documentation.

3 unchanged sentences

• a fair value range for the selected Portfolio Company Investments, based upon the independent market research performed and compared the results to the Company’s fair value estimates.

Accompanying Supplementary Information

We have also previously audited, in accordance with the standards of the PCAOB, the statements of assets and liabilities of the Company, including the schedules of investments, as of December 31, 2021, 2020 and 2019, and the related statements of operations and cash flows for the years then ended and the related statements of changes in net assets for each of the years in the three-year period ended December 31, 2021 (none of which is presented herein), and we expressed unqualified opinions on those consolidated financial statements.

The senior securities information as of December 31, 2023, 2022, 2021, 2020 and 2019 included in Part II, Item 5 of the Annual Report on Form 10-K of the Company under the caption “Senior Securities” (the senior securities table) has been subjected to audit procedures performed in conjunction with the audits of the Company’s consolidated financial statements.

The senior securities table is the responsibility of the Company’s management.

Our audit procedures included determining whether the senior securities table reconciles to the consolidated financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the senior securities table.

In forming our opinion on the senior securities table, we evaluated whether the senior securities table, including its form and content, is presented in conformity with the instructions to Form N-2.

In our opinion, the senior securities table as of December 31, 2023, 2022, 2021, 2020 and 2019 is fairly stated, in all material respects, in relation to the consolidated financial statements as a whole.

We have served as the Company’s auditor since 2019.

9 unchanged sentences

104,423 86,831

Control investments (amortized cost of 0 and $ 10,160 , respectively)

Total investments, at fair value (amortized cost of $ 363,547 and $ 403,530 , respectively)

1 unchanged sentence

Cash and cash equivalents 6,068 45,349

Interest receivable 2,217 2,202

Receivable for investments sold 9,247 —

Interest and dividend receivable 1,774 2,217

Prepaid expenses and other assets 1,369 1,965

2 unchanged sentences

SBA debentures (net of deferred debt issuance costs of $ 0 and $ 20 , respectively)

31,900 50,697

Unsecured Notes (net of discounts and deferred debt issuance costs of $ 1,688 and $ 2,667 , respectively)

2 unchanged sentences

Payable to investment adviser and affiliates (Note 3) 3,145 3,556

Accrued professional fees 500 444

Payable for investments purchased 1,802 —

Other liabilities 1,094 813

2 unchanged sentences

Preferred stock, par value of $ 0.01 per share, 2,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

Common stock, par value of $ 0.01 per share, 100,000,000 shares authorized, 13,398,078 and 13,398,078 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively

Common stock, par value of $ 0.01 per share, 100,000,000 shares authorized, 13,398,078 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

Paid-in capital in excess of par 184,912 184,841

2 unchanged sentences

Total liabilities and net assets $ 428,123 $ 469,818

Number of shares outstanding 13,398,078 13,398,078

Number of common shares outstanding 13,398,078 13,398,078

Net asset value per share $ 12.85 $ 12.09

8 unchanged sentences

Non-control/non-affiliate investments $ 41,699 $ 53,208 $ 45,636

Affiliate investments — — 3,517

Control investments — — 98

12 unchanged sentences

Non-control/non-affiliate investments 505 479 1,067

Affiliate investments — — 653

Control investments — — 6

1 unchanged sentence

Total investment income 47,964 56,943 48,744

Interest and financing expense 19,482 17,025 17,515

Interest expense 16,648 19,482 17,025

Base management fees 5,993 7,218 7,979

8 unchanged sentences

Net realized loss on non-control/non-affiliate investments ( 10,606 ) ( 838 ) ( 2,163 )

Net realized gain on affiliate investments — — 7,545

Net realized loss on affiliate investments ( 6,506 ) — —

Net realized gain (loss) on control investments — ( 10,516 ) 278

14 unchanged sentences

Consolidated Statements of Changes in Net Assets

(Dollar amounts in thousands, except per share data)

(Dollar amounts in thousands)

Preferred Stock Common Stock

1 unchanged sentence

Balances at December 31, 2021 — $ — 13,422,413 $ 134 $ 185,113 $ 18,497 $ 203,744

Net increase in net assets resulting from operations:

Net decrease in net assets resulting from operations:

Net investment income — — — — — 18,352 18,352

Net realized losses on investments, net of taxes — — — — — ( 1,730 ) ( 1,730 )

Unrealized appreciation on investments, net of deferred taxes — — — — — 68,601 68,601

Loss on extinguishment of debts — — — — — ( 4,591 ) ( 4,591 )

Net unrealized depreciation on investments, net of deferred taxes — — — — — ( 24,064 ) ( 24,064 )

Loss on extinguishment of debt — — — — — ( 144 ) ( 144 )

Tax reclassifications of permanent differences — — — — ( 101 ) 101 —

3 unchanged sentences

Repurchase of common stock — — ( 42,254 ) — ( 350 ) — ( 350 )

Net increase (decrease) for the year ended December 31, 2021 — — 12,854 — ( 2,011 ) 46,799 44,788

Net decrease for the year ended December 31, 2022 — — ( 24,335 ) — ( 272 ) ( 23,049 ) ( 23,321 )

Balances at December 31, 2022 — $ — 13,398,078 $ 134 $ 184,841 $ ( 4,552 ) $ 180,423

2 unchanged sentences

Net realized losses on investments, net of taxes — — — — — ( 11,405 ) ( 11,405 )

Unrealized depreciation on investments, net of deferred taxes — — — — — ( 24,064 ) ( 24,064 )

Loss on extinguishment of debts — — — — — ( 144 ) ( 144 )

Tax reclassifications of permanent differences — — — — ( 101 ) 101 —

Distributions to stockholders:

Common stock issued from reinvestment of stockholder distributions — — 17,919 — 179 — 179

Net unrealized depreciation on investments, net of deferred taxes — — — — — ( 9,007 ) ( 9,007 )

Loss on extinguishment of debt — — — — — ( 213 ) ( 213 )

Dividends declared — — — — — ( 17,954 ) ( 17,954 )

Repurchases of common stock — — ( 42,254 ) — ( 350 ) — ( 350 )

Net decrease for the year ended December 31, 2023 — — — — — ( 18,419 ) ( 18,419 )

Balances at December 31, 2023 — $ — 13,398,078 $ 134 $ 184,841 $ ( 22,971 ) $ 162,004

Net decrease in net assets resulting from operations:

Net increase in net assets resulting from operations:

Net investment income — — — — — 16,712 16,712

Net realized losses on investments, net of taxes — — — — — ( 17,121 ) ( 17,121 )

Net unrealized depreciation on investments, net of deferred taxes — — — — — ( 9,007 ) ( 9,007 )

Loss on extinguishment of debts — — — — — ( 213 ) ( 213 )

Net unrealized appreciation on investments, net of deferred taxes — — — — — 28,851 28,851

Tax reclassifications of permanent differences — — — — 71 ( 71 ) —

Dividends declared — — — — — ( 18,221 ) ( 18,221 )

Net decrease for the year ended December 31, 2023 — — — — — ( 18,419 ) ( 18,419 )

Net increase for the year ended December 31, 2024 — — — — 71 10,150 10,221

Balances at December 31, 2024 — $ — 13,398,078 $ 134 $ 184,912 $ ( 12,821 ) $ 172,225

7 unchanged sentences

Net increase (decrease) in net assets resulting from operations $ 28,442 $ ( 465 ) $ ( 7,586 )

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

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

Net realized loss on investments 17,112 11,354 1,885

Net unrealized (appreciation) depreciation on investments, net of deferred taxes ( 28,851 ) 9,007 24,064

Income tax expense (benefit) from realized gains on investments 51 ( 155 ) 1,027

Income tax expense (benefit) from net realized gains on investments 9 51 ( 155 )

Loss on extinguishment of debt — 213 144

Amortization and write-off of deferred offering costs 1,528 1,549 1,969

Amortization of deferred debt issuance costs 1,505 1,528 1,549

Write-off of deferred offering costs 99 — —

Amortization of intangible asset 69 408 409

Amortization of Net Loan Fees ( 1,649 ) ( 1,836 ) ( 1,738 )

Amendment fees collected 250 206 265

Amendment fees received 281 250 206

Payment-in-kind interest and dividend income ( 2,733 ) ( 2,597 ) ( 976 )

5 unchanged sentences

Changes in operating assets and liabilities:

Interest receivable ( 15 ) ( 727 ) ( 177 )

Interest payable ( 235 ) 262 509

Interest and dividend receivable 443 ( 15 ) ( 727 )

Receivable for investments sold ( 9,247 ) — 14,893

Interest payable ( 517 ) ( 235 ) 262

Payable to investment adviser and affiliates ( 411 ) ( 353 ) ( 2,308 )

1 unchanged sentence

Other assets and liabilities ( 92 ) 432 ( 828 )

Net cash provided by (used in) operating activities 81,566 2,946 ( 12,009 )

Net cash provided by operating activities 33,010 81,566 2,946

Cash flows from financing activities

Proceeds from offerings of Unsecured Notes, net of discounts — — 175,506

Redemptions of Unsecured Notes — — ( 177,850 )

Distributions paid to stockholders ( 17,954 ) ( 15,385 ) ( 12,071 )

Distributions paid to common stockholders ( 18,221 ) ( 17,954 ) ( 15,385 )

Borrowings under revolving lines of credit 17,500 26,550 59,450

1 unchanged sentence

Repayments of SBA debentures ( 31,920 ) ( 19,000 ) ( 19,000 )

Payments of deferred debt issuance costs and other financing costs — ( 1,372 ) ( 836 )

Net cash provided by (used in) financing activities ( 51,154 ) ( 31,057 ) 17,349

Payments of deferred debt issuance costs — — ( 1,372 )

Net cash used in financing activities ( 72,291 ) ( 51,154 ) ( 31,057 )

Net increase (decrease) in cash ( 39,281 ) 30,412 ( 28,111 )

16 unchanged sentences

First Lien Debt 10.50 % SOFR+ 6.00 % 1/28/2022 11/16/2027 $ 8,730 $ 8,698 $ 8,730 5.1 %

Advantage Sales & Marketing Inc.

(F/K/A Karman Buyer Corp) (14) (15) Advertising Agencies

First Lien Debt 10.18 % SOFR+ 4.50 % 3/2/2022 10/28/2027 2,260 2,238 2,249 1.4

AIDC Intermediateco 2, LLC (15) Computer Systems Design Services

4 unchanged sentences

First Lien Debt 9.98 % SOFR+ 5.50 % 3/2/2021 2/10/2027 3,691 3,688 2,596 1.5

All Star Auto Lights, Inc.

(4) (15) (20) Motor Vehicle Parts (Used) Merchant Wholesalers

First Lien Debt 10.97 % SOFR+ 5.50 % 12/19/2019 8/20/2025 22,861 22,719 22,853 14.1

Associated Spring, LLC (15) Spring Manufacturing

First Lien Debt 10.33 % SOFR+ 5.75 % 12/10/2024 4/4/2030 2,276 2,231 2,231 1.3

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 5.75 % 12/10/2024 4/4/2030 — ( 9 ) ( 9 ) —

2,276 2,222 2,222 1.3

Astro One Acquisition Corporation (6) Other Miscellaneous Nondurable Goods Merchant Wholesalers

Second Lien Debt 14.11 % SOFR+ 8.50 % 1/31/2022 9/14/2029 3,000 2,596 110 0.1

Avison Young (6) (21) Nonresidential Property Managers

First Lien Debt (15) 12.11 % SOFR+ 6.50 % 11/25/2021 1/31/2026 3,925 3,903 1,063 0.7

First Lien Debt 12.64 % SOFR+ 7.00 % 8/19/2022 1/31/2026 794 757 215 0.1

Avison Young Inc.

(8) (15) Nonresidential Property Managers

First Lien Debt (11) 6.15 % cash / 6.50 % PIK

SOFR+ 8.00 % 11/25/2021 3/12/2029 1,564 1,564 1,405 0.8

First Lien Debt (6) (10) (11) 6.15 % cash / 6.50 % PIK

SOFR+ 8.00 % 11/25/2021 3/12/2029 527 474 197 0.1

Common Equity ( 1,185 Class B units) (10) (13)

3/12/2024 1,400 — —

Preferred Equity ( 1,715 Class A units) 12.5 % PIK (10) (13)

3/12/2024 1,269 — —

2,091 4,707 1,602 0.9

BayMark Health Services, Inc.

3 unchanged sentences

8,950 8,882 8,378 4.9

BCPE North Star US Holdco 2, Inc.

(F/K/A Dessert Holdings) Ice Cream and Frozen Dessert Manufacturing

Second Lien Debt 11.72 % SOFR+ 7.25 % 2/2/2022 6/8/2029 3,667 3,407 3,546 2.1

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

BCPE North Star US Holdco 2, Inc.

(F/K/A Dessert Holdings) Ice Cream and Frozen Dessert Manufacturing

Second Lien Debt 12.72 % SOFR+ 7.25 % 2/2/2022 6/8/2029 $ 1,667 $ 1,645 $ 1,474 0.9 %

Boca Home Care Holdings, Inc.

16 unchanged sentences

Second Lien Debt 11.22 % SOFR+ 6.75 % 9/28/2018 3/30/2029 5,938 5,878 5,938 3.4

Creation Technologies (15) (21) Bare Printed Circuit Board Manufacturing

Creation Technologies Inc.

(8) (15) Bare Printed Circuit Board Manufacturing

First Lien Debt 10.35 % SOFR+ 5.50 % 9/24/2021 10/5/2028 1,950 1,942 1,915 1.1

Diamond Sports Group, LLC (6) (14) (15) Television Broadcasting

Second Lien Debt 10.71 % SOFR+ 5.25 % 11/19/2019 8/24/2026 1,935 1,935 92 0.1

East West Manufacturing (15) Fluid Power Pump and Motor Manufacturing

East West Manufacturing LLC (15) Fluid Power Pump and Motor Manufacturing

First Lien Debt 10.11 % SOFR+ 5.75 % 2/11/2022 12/22/2028 1,910 1,899 1,910 1.1

Electrical Components International, Inc.

Current-Carrying Wiring Device Manufacturing

Second Lien Debt 13.96 % SOFR+ 8.50 % 4/8/2021 6/26/2026 3,679 3,452 3,561 2.2

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Envocore Holding, LLC (F/K/A LRI Holding, LLC) (17) Electrical Contractors and Other Wiring Installation Contractors

First Lien Debt 7.50 % N/A 6/30/2017 12/31/2025 6,231 6,231 6,231 3.6

First Lien Debt (Revolver) (5) 7.50 % N/A 11/29/2021 12/31/2025 899 899 899 0.5

Second Lien Debt (6) (10) 10.00 % PIK

N/A 6/30/2017 12/31/2026 8,677 6,584 2,018 1.2

First Lien Debt (Revolver) (5) n/m (18) N/A 11/29/2021 12/31/2025 — — — —

Equity Participation Rights (7) (10) 12/31/2021 4,722 — —

3 unchanged sentences

N/A 10/25/2018 10/1/2026 5,955 5,891 4,913 2.9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2024

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

First Brands Group, LLC (14) (15) Other Motor Vehicle Parts Manufacturing

First Lien Debt 9.85 % SOFR+ 5.00 % 8/23/2024 3/30/2027 $ 3,343 $ 3,300 $ 3,148 1.8 %

First Lien Debt 9.85 % SOFR+ 5.00 % 8/26/2024 3/30/2027 1,632 1,614 1,533 0.9

4,975 4,914 4,681 2.7

GGC Aerospace Topco L.P.

6 unchanged sentences

First Lien Debt 9.30 % SOFR+ 4.75 % 3/26/2021 4/28/2028 936 936 855 0.5

First Lien Debt 9.30 % SOFR+ 4.75 % 3/26/2021 4/28/2028 1,293 1,292 594 0.3

2,229 2,228 1,449 0.9

Heritage Grocers Group, LLC.

5 unchanged sentences

First Lien Debt (Revolver) (5) 12.25 % Prime+ 4.75 % 10/15/2021 10/15/2027 95 88 95 0.1

First Lien Debt (Delayed Draw) (5) (15) 11.50 % SOFR+ 6.00 % 3/31/2023 10/15/2027 2,706 2,682 2,706 1.7

First Lien Debt (15) 10.23 % SOFR+ 5.75 % 3/31/2023 10/15/2027 4,503 4,469 4,503 2.6

First Lien Debt (Delayed Draw) (5) (15) n/m (18) SOFR+ 5.75 % 10/15/2024 10/15/2026 — ( 22 ) — —

15,045 14,880 15,045 8.8

Idera Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Second Lien Debt 11.47 % SOFR+ 6.75 % 1/27/2022 3/2/2029 2,683 2,683 2,683 1.6

Inergex Holdings, LLC (11) Other Computer Related Services

First Lien Debt 11.47 % cash / 2.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2026 14,784 14,658 14,784 8.6

First Lien Debt (Revolver) 11.74 % cash / 2.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2026 2,344 2,344 2,344 1.4

17,128 17,002 17,128 10.0

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Inergex Holdings, LLC (11) Other Computer Related Services

First Lien Debt 12.58 % cash / 1.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2024 $ 14,868 $ 14,783 $ 14,868 9.2 %

First Lien Debt (Revolver) 12.58 % cash / 1.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2024 2,344 2,312 2,344 1.4

17,212 17,095 17,212 10.6

Ivanti Software, Inc.

2 unchanged sentences

JP Intermediate B, LLC (6) (15) Drugs and Druggists' Sundries Merchant Wholesalers

First Lien Debt 11.14 % SOFR+ 5.50 % 1/14/2021 11/20/2027 4,697 4,513 3,368 2.1

First Lien Debt 14.00 % Prime+ 6.50 % 1/14/2021 11/20/2027 4,638 4,491 2,102 1.2

Kreg LLC Other Ambulatory Health Care Services

8 unchanged sentences

2,212 2,160 2,238 1.3

Metasource (15) All Other Business Support Services

Metasource, LLC (15) All Other Business Support Services

First Lien Debt 10.84 % cash / 0.50 % PIK

SOFR+ 6.25 % 5/17/2022 5/17/2027 2,741 2,708 2,593 1.5

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 6.25 % 5/17/2022 5/17/2027 — ( 4 ) ( 69 ) —

2,755 2,729 2,528 1.6

One GI LLC Offices of Other Holding Companies

1 unchanged sentence

First Lien Debt (15) 11.21 % SOFR+ 6.75 % 12/13/2021 12/22/2025 3,877 3,857 3,764 2.2

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.75 % 12/13/2021 12/22/2025 — ( 14 ) ( 71 ) —

First Lien Debt (Revolver) 11.25 % SOFR+ 6.75 % 12/13/2021 12/22/2025 1,444 1,437 1,403 0.8

12,677 12,614 12,310 7.1

Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) (6) Software Publishers

First Lien Debt 6.50 % N/A 3/13/2018 12/31/2026 16,648 14,113 7,159 4.2

PM Acquisition LLC All Other General Merchandise Stores

Common Equity ( 499 units) (10)

9/30/2017 499 1,196 0.7

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) (6) Software Publishers

First Lien Debt 6.50 % N/A 3/13/2018 12/31/2025 $ 16,648 $ 14,113 $ 6,858 4.2 %

PM Acquisition LLC All Other General Merchandise Stores

Common Equity ( 499 units) (10)

9/30/2017 499 551 0.3

Reception Purchaser LLC (15) Transportation and Warehousing

First Lien Debt 11.50 % SOFR+ 6.00 % 4/28/2022 3/24/2028 2,523 2,495 2,257 1.4

Redstone Holdco 2 LP (F/K/A RSA Security) (15) Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

20 unchanged sentences

First Lien Debt 7.96 % SOFR+ 3.50 % 3/25/2021 4/3/2028 1,785 1,776 1,605 0.9

SS Acquisition, LLC Sports and Recreation Instruction

First Lien Debt 10.35 % SOFR+ 6.00 % 12/20/2024 12/20/2029 12,464 12,402 12,402 7.2

First Lien Debt (15) 10.35 % SOFR+ 6.00 % 12/20/2024 12/20/2029 4,500 4,478 4,478 2.6

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.00 % 12/20/2024 12/20/2029 — ( 9 ) ( 9 ) —

16,964 16,871 16,871 9.8

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Spear Education Holdings, LLC (15)

First Lien Debt Professional and Management Development Training 13.00 % SOFR+ 7.50 % 2/10/2023 12/15/2027 $ 1,485 $ 1,455 $ 1,484 0.9 %

SSJA Bariatric Management LLC (10) (15) (19) Offices of Physicians, Mental Health Specialists

3 unchanged sentences

First Lien Debt (Revolver) (6) 9.73 % SOFR+ 5.25 % 8/26/2019 4/30/2025 297 266 185 0.1

Common Equity ( 867,591 Class F units) (13)

4/10/2024 — — —

SS Acquisition, LLC (8) (15) Sports and Recreation Instruction

First Lien Debt 12.41 % SOFR+ 6.75 % 12/30/2021 12/30/2026 3,042 3,023 3,042 1.9

First Lien Debt 13.10 % SOFR+ 7.45 % 12/30/2021 12/30/2026 1,460 1,449 1,460 0.9

14,996 13,462 9,328 5.3

1 unchanged sentence

(14) (15) Business to Business Electronic Markets

First Lien Debt 10.46 % L+ 5.00 % 6/24/2019 4/16/2026 2,870 2,841 2,728 1.7

STS Operating, Inc.

Industrial Machinery and Equipment Merchant Wholesalers

Second Lien Debt 13.46 % SOFR+ 8.00 % 5/15/2018 4/30/2026 9,073 9,072 9,073 5.6

First Lien Debt 10.18 % SOFR+ 5.75 % 5/23/2024 9/4/2029 2,565 2,473 2,458 1.4

Tolemar Acquisition, Inc.

Motorcycle, Bicycle, and Parts Manufacturing

First Lien Debt (15) 11.75 % SOFR+ 6.00 % 10/14/2021 10/14/2026 15,347 15,304 14,334 8.8

First Lien Debt (15) 10.46 % Cash / 1.00 % PIK

SOFR+ 6.00 % 10/14/2021 10/14/2026 15,302 15,248 14,460 8.4

First Lien Debt (Revolver) (5) 10.55 % SOFR+ 6.00 % 10/14/2021 10/14/2026 1,029 1,024 944 0.5

5 unchanged sentences

4/16/2013 9 — —

(F/K/A KNS Acquisition Corp.) (15) Electronic Shopping and Mail-Order Houses

First Lien Debt 9.48 % SOFR+ 5.00 % 12/19/2024 4/19/2030 2,844 2,844 2,844 1.7

First Lien Debt 10.72 % SOFR+ 6.25 % 4/16/2021 10/19/2030 4,354 4,354 4,354 2.5

7,198 7,198 7,198 4.2

Total Debt and Equity Investments $ 260,122 $ 263,106 $ 228,367 132.6 %

Structured Finance Securities (8)

Apex Credit CLO 2020 Ltd.

Subordinated Notes 18.21 % N/A 11/16/2020 4/20/2035 $ 11,080 $ 9,388 $ 7,717 4.5 %

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

(F/K/A KNS Acquisition Corp.) (15) Electronic Shopping and Mail-Order Houses

First Lien Debt 11.72 % SOFR+ 6.25 % 4/16/2021 4/21/2027 $ 6,606 $ 6,581 $ 6,313 3.9

Total Debt and Equity Investments $ 285,417 $ 287,218 $ 254,411 157.0 %

Structured Finance Securities (21)

Apex Credit CLO 2020 (9) (16)

Subordinated Notes 14.89 % N/A 11/16/2020 10/20/2031 $ 11,080 $ 10,191 $ 7,031 4.3 %

Apex Credit CLO 2021 Ltd.

Subordinated Notes 18.66 % N/A 5/28/2021 7/18/2034 $ 8,630 $ 6,400 $ 5,282 3.1 %

Apex Credit CLO 2022-1A (9) (16)

Apex Credit CLO 2022-1 Ltd.

Subordinated Notes 13.26 % N/A 4/28/2022 4/22/2033 10,726 8,598 6,213 3.6

Mezzanine Debt - Class E 11.31 % SOFR+ 5.65 % 2/17/2022 1/15/2032 6,000 5,832 5,474 3.4

Barings CLO 2019-I Ltd.

Mezzanine Debt - Class E 12.52 % SOFR+ 6.86 % 2/23/2022 4/15/2035 8,000 7,918 7,725 4.8

Battalion CLO XI Ltd.

Mezzanine Debt - Class E 11.75 % SOFR+ 6.85 % 4/24/2022 4/24/2034 6,000 5,981 5,659 3.3

Brightwood Capital MM CLO 2023-1A, Ltd.

Mezzanine Debt - Class D 11.85 % SOFR+ 6.46 % 9/28/2023 10/15/2035 915 888 888 0.5

BlueMountain CLO XXXV Ltd.

Subordinated Notes 15.30 % N/A 10/30/2024 10/22/2037 5,800 4,270 4,217 2.4

Brightwood Capital MM CLO 2023-1, Ltd.

Mezzanine Debt - Class E 15.02 % SOFR+ 10.36 % 9/28/2023 10/15/2035 2,133 1,965 2,177 1.3

1 unchanged sentence

7,627 6,924 6,638 3.9

Canyon CLO 2019-1, Ltd.

Subordinated Notes 23.97 % N/A 8/22/2024 7/15/2037 18,453 9,492 10,296 6.0

Dryden 76 CLO, Ltd.

Subordinated Notes - Income 8.04 % N/A 10/26/2020 1/15/2031 2,700 1,280 622 0.3

Subordinated Notes 10.31 % N/A 9/27/2019 10/15/2037 5,352 3,131 2,210 1.3

4,859 2,326 1,119 0.7

ICG US CLO 2021-3, Ltd.

Subordinated Notes 30.03 % N/A 8/8/2024 10/20/2034 16,750 8,082 9,734 5.7

Subordinated Notes 16.91 % N/A 12/19/2024 1/15/2038 3,500 2,993 2,993 1.7

Madison Park Funding XXIII, Ltd.

Subordinated Notes 12.68 % N/A 1/8/2020 7/27/2047 10,000 4,559 4,140 2.4

Madison Park Funding XXIX, Ltd.

Subordinated Notes 6.34 % N/A 12/22/2020 10/18/2047 9,500 4,866 3,604 2.1

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Dryden 76 CLO, Ltd.

Subordinated Notes 16.12 % N/A 9/27/2019 10/20/2032 $ 2,750 $ 2,332 $ 1,779 1.1 %

Flatiron CLO 18, Ltd.

Subordinated Notes 7.62 % N/A 1/2/2019 4/17/2031 9,680 6,314 4,989 3.1

Madison Park Funding XXIII, Ltd.

Subordinated Notes 16.45 % N/A 1/8/2020 7/27/2047 10,000 5,558 4,744 2.9

Madison Park Funding XXIX, Ltd.

Subordinated Notes 13.78 % N/A 12/22/2020 10/18/2047 9,500 5,927 5,355 3.3

Monroe Capital MML CLO X, Ltd.

3 unchanged sentences

Park Avenue Institutional Advisers CLO Ltd 2021-1

Mezzanine Debt - Class E 12.98 % SOFR+ 7.30 % 1/26/2021 1/20/2034 1,000 982 982 0.6

Redding Ridge 4 (9) (16)

Subordinated Notes 7.46 % N/A 3/4/2021 4/15/2030 1,300 910 544 0.3

Regatta XXII Funding Ltd

Mezzanine Debt - Class E 12.61 % SOFR+ 7.19 % 5/6/2022 7/20/2035 3,000 2,977 3,007 1.9

Mezzanine Debt - Class D 12.18 % SOFR+ 7.30 % 1/26/2021 1/20/2034 1,000 986 998 0.6

THL Credit Wind River 2019‐3 CLO Ltd.

Subordinated Notes 0.00 % N/A 4/5/2019 4/15/2031 7,000 3,923 1,618 0.9

Trinitas CLO VIII (9) (16)

Trinitas CLO VIII, Ltd.

Subordinated Notes 0.00 % N/A 3/4/2021 7/20/2117 5,200 2,464 582 0.3

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Venture 45 CLO Ltd.

Venture 45 CLO, Limited

Mezzanine Debt - Class E 12.32 % SOFR+ 7.70 % 4/18/2022 7/20/2035 3,000 2,952 2,739 1.6

Wellfleet CLO 2018-2 (9) (16)

Subordinated Notes 9.99 % N/A 3/4/2021 10/20/2031 1,000 627 270 0.2

Total Structured Finance Securities $ 137,618 $ 88,983 $ 76,875 44.6 %

11 unchanged sentences

3/8/2018 1,135 1,190 0.7

Master Cutlery, LLC (4) (10) (19) Sporting and Recreational Goods and Supplies Merchant Wholesalers

Subordinated Debt (6) (11) 13.00 % PIK

N/A 4/17/2015 5/25/2024 9,749 4,680 — —

Preferred Equity ( 3,723 Series A units), 8 % PIK

4/17/2015 3,483 — —

Common Equity ( 15,564 units)

4/17/2015 — — —

9,749 8,163 — —

Pfanstiehl Holdings, Inc.

(4) (19) (20) Pharmaceutical Preparation Manufacturing

Common Equity ( 400 Class A shares)

1/1/2014 217 70,927 43.8

TalentSmart Holdings, LLC (10) (13) (19) Professional and Management Development Training

Common Equity ( 1,595,238 Class A shares)

10/11/2019 1,595 1,136 0.7

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

TRS Services, LLC (4) (19) Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Preferred Equity ( 1,937,191 Class A units), 11 % PIK

12/10/2014 $ 97 $ 2,507 1.5 %

Common Equity ( 3,000,000 units) (10)

Pfanstiehl Holdings, Inc.

(19) (20) Pharmaceutical Preparation Manufacturing

Common Equity ( 400 Class A shares)

1/1/2014 $ 217 $ 89,298 51.8 %

TalentSmart Holdings, LLC (10) (13) (19) Professional and Management Development Training

Common Equity ( 1,595,238 Class A shares)

10/11/2019 1,595 1,604 0.9

3 unchanged sentences

The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.

(2) As of December 31, 2023, the Company held loans with an aggregate fair value of $ 230,185 , or 92 % of the total loan portfolio, that bore interest at a variable rate indexed to LIBOR (L), Prime or SOFR, and reset monthly, quarterly, or semi-annually.

(2) As of December 31, 2024, the Company held loans and mezzanine debt investments with an aggregate fair value of $ 215,559 that bore interest at a variable rate indexed to SOFR or Prime, and reset monthly, quarterly, or semi-annually.

For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect as of December 31, 2024.

2 unchanged sentences

See Note 5 for further details.

(4) Investments (or portion thereof) held by SBIC I LP.

These assets were pledged as collateral of the SBA debentures and could not be pledged under any debt obligation of the Company.

(4) As of December 31, 2024, the effective accretable yield was estimated to be 0 %, as the aggregate amount of projected distributions, including projected distributions related to liquidation of the underlying portfolio upon the security's anticipated optional redemption, was less than current amortized cost.

Projected distributions are periodically monitored and re-evaluated.

All actual distributions were recognized as reductions to amortized cost until such time, if and when occurring, a future aggregate amount of then-projected distributions exceeds the security's then-current amortized cost.

(5) Subject to unfunded commitments.

The Company considers undrawn amounts in the determination of fair value on revolving lines of credit and delayed draw term loans.

(6) Investment was on non-accrual status as of December 31, 2024, meaning the Company suspended recognition of all or a portion of income on the investment.

1 unchanged sentence

(7) Equity participation rights issued by unaffiliated third party fully covered with underlying positions in the portfolio company.

(8) The Company entered into a contractual arrangement with co‑lenders whereby, subject to certain conditions, it agreed to receive its payment after the repayment of certain co‑lenders pursuant to a payment waterfall.

The table below provides additional details as of December 31, 2023:

Portfolio Company Reported Interest Rate Interest Rate per Credit Agreement Additional Interest per Annum

SS Acquisition, LLC 12.41 % 11.89 % 0.51 %

SS Acquisition, LLC 13.10 % 11.89 % 1.21 %

(8) Non-qualifying assets under Section 55(a) of the 1940 Act.

Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets.

As of December 31, 2024, approximately 80 % of the Company's assets were qualifying assets.

(9) The rate disclosed on subordinated note investments is the estimated effective yield, generally established at purchase, and reevaluated upon the receipt of the initial distribution and each subsequent quarter thereafter.

9 unchanged sentences

The interest rate in the schedule represents the current interest rate in effect for these investments.

The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed as of December 31, 2023:

Portfolio Company Investment Type Range of PIK

The following table provides additional details on these PIK investments, including the maximum PIK interest rate allowed as of December 31, 2024:

Portfolio Company Investment Type Maximum PIK

Rate Allowed Range of PIK

Option Range of Cash

Option Maximum PIK

Avison Young Inc.

First Lien Debt 6.50 % 0 % to 6.50 %

6.15 % to 12.65 %

Avison Young Inc.

First Lien Debt 6.50 % 0 % to 6.50 %

6.15 % to 12.65 %

Inergex Holdings, LLC First Lien Debt 2.00 % 0 % to 2.00 %

4 unchanged sentences

8.73 % to 10.73 %

Master Cutlery, LLC Subordinated Debt 0 % to 13.00 %

RumbleOn, Inc.

First Lien Debt 1.50 % 0 % to 1.50 %

12.10 % to 13.60 %

12 unchanged sentences

(18) Not meaningful as there is no outstanding balance on the revolver or delayed draw loan.

The Company earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.

The Company generally earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.

(19) The Company has an observer seat on the portfolio company’s board of directors.

(20) Portfolio company at fair value represents greater than 5% of total assets at December 31, 2024.

(21) Non-qualifying assets under Section 55(a) of the 1940 Act.

Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets.

As of December 31, 2023, approximately 81 % of the Company's assets were qualifying assets.

See Notes to Consolidated Financial Statements.

9 unchanged sentences

24 Seven Holdco, LLC (15) Temporary Help Services

First Lien Debt 10.39 % L+ 6.00 % 1/28/2022 11/16/2027 $ 8,910 $ 8,854 $ 8,821 4.9 %

First Lien Debt 11.45 % SOFR+ 6.00 % 1/28/2022 11/16/2027 $ 8,820 $ 8,776 $ 8,483 5.2 %

Advantage Sales & Marketing Inc.

(F/K/A Karman Buyer Corp) (14) (15) Advertising Agencies

First Lien Debt 8.28 % L+ 4.50 % 3/2/2022 10/28/2027 2,284 2,256 1,898 1.1

First Lien Debt 10.18 % SOFR+ 4.50 % 3/2/2022 10/28/2027 2,260 2,238 2,249 1.4

AIDC Intermediateco 2, LLC (15) Computer Systems Design Services

First Lien Debt 11.80 % SOFR+ 6.25 % 7/22/2022 7/22/2027 1,980 1,948 1,974 1.2

First Lien Debt 11.78 % SOFR+ 6.25 % 7/31/2023 7/22/2027 46 45 46 —

2,026 1,993 2,020 1.2

Allen Media, LLC (14) (15) Cable and Other Subscription Programming

2 unchanged sentences

(4) (15) (20) Motor Vehicle Parts (Used) Merchant Wholesalers

First Lien Debt 12.00 % L+ 7.25 % 12/19/2019 8/20/2025 23,098 22,863 22,890 12.7

First Lien Debt 11.76 % L+ 7.25 % 8/4/2022 8/20/2025 4,975 4,889 4,930 2.7

First Lien Debt 10.97 % SOFR+ 5.50 % 12/19/2019 8/20/2025 22,861 22,719 22,853 14.1

First Lien Debt 10.96 % SOFR+ 5.50 % 8/4/2022 8/20/2025 4,925 4,872 4,923 3.0

27,786 27,591 27,776 17.1

Astro One Acquisition Corporation (6) Other Miscellaneous Nondurable Goods Merchant Wholesalers

Second Lien Debt 13.23 % L+ 8.50 % 1/31/2022 9/14/2029 3,000 2,680 2,246 1.2

Asurion, LLC (14) Communication Equipment Repair and Maintenance

Second Lien Debt 9.63 % L+ 5.25 % 6/28/2022 1/31/2028 2,000 1,766 1,572 0.9

Atlantis Holding, LLC (14) (15) Electronics and Appliance Stores

First Lien Debt 11.83 % SOFR+ 7.25 % 3/29/2022 3/31/2029 8,316 8,037 8,102 4.5

Avison Young (22) Nonresidential Property Managers

Second Lien Debt 14.11 % SOFR+ 8.50 % 1/31/2022 9/14/2029 3,000 2,596 110 0.1

Avison Young Inc.

(6) (21) Nonresidential Property Managers

First Lien Debt (15) 12.11 % SOFR+ 6.50 % 11/25/2021 1/31/2026 3,925 3,903 1,063 0.7

1 unchanged sentence

4,719 4,660 1,278 0.8

BayMark Health Services, Inc.

(15) Outpatient Mental Health and Substance Abuse Centers

Second Lien Debt 14.11 % SOFR+ 8.50 % 6/10/2021 6/11/2028 4,962 4,915 4,962 3.1

Second Lien Debt 14.12 % SOFR+ 8.50 % 6/10/2021 6/11/2028 3,988 3,948 3,988 2.5

8,950 8,863 8,950 5.6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

4 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

BayMark Health Services, Inc.

(15) Outpatient Mental Health and Substance Abuse Centers

Second Lien Debt 13.23 % L+ 8.50 % 6/10/2021 6/11/2028 $ 4,962 $ 4,904 $ 4,861 2.7 %

Second Lien Debt (Delayed Draw) (5) 13.23 % L+ 8.50 % 6/10/2021 6/11/2028 3,988 3,883 3,814 2.1

8,950 8,787 8,675 4.8

BCPE North Star US Holdco 2, Inc.

(F/K/A Dessert Holdings) Ice Cream and Frozen Dessert Manufacturing

Second Lien Debt 11.98 % L+ 7.25 % 2/2/2022 6/8/2029 1,667 1,641 1,540 0.9

Second Lien Debt 12.72 % SOFR+ 7.25 % 2/2/2022 6/8/2029 $ 1,667 $ 1,645 $ 1,474 0.9 %

Boca Home Care Holdings, Inc.

(19) Services for the Elderly and Persons with Disabilities

First Lien Debt (Delayed Draw) (15) 11.33 % SOFR+ 6.50 % 2/25/2022 2/25/2027 9,548 9,469 9,201 5.1

First Lien Debt (15) 11.96 % SOFR+ 6.50 % 2/25/2022 2/25/2027 10,972 10,874 10,597 6.5

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.50 % 2/25/2022 2/25/2027 — ( 10 ) ( 44 ) —

1 unchanged sentence

2/25/2022 1,290 827 0.5

Preferred Equity ( 3,446 Class A Units), 12.0 % cash / 2.0 % PIK

3/3/2023 345 344 0.2

10,972 12,499 11,724 7.2

Clevertech Bidco, LLC Commodity Contracts Dealing

First Lien Debt (15) 12.25 % SOFR+ 6.75 % 11/3/2023 12/30/2027 3,198 3,106 3,106 1.9

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.75 % 11/3/2023 12/30/2027 — ( 9 ) ( 9 ) —

3,198 3,097 3,097 1.9

Constellis Holdings, LLC (10) Other Justice, Public Order, and Safety Activities

3 unchanged sentences

Second Lien Debt 12.22 % SOFR+ 6.75 % 9/28/2018 3/30/2029 5,938 5,863 5,877 3.6

Creation Technologies (15) (22) Bare Printed Circuit Board Manufacturing

First Lien Debt 9.25 % L+ 5.50 % 9/24/2021 10/5/2028 1,990 1,977 1,854 1.0

Creation Technologies Inc.

(15) (21) Bare Printed Circuit Board Manufacturing

First Lien Debt 11.18 % SOFR+ 5.50 % 9/24/2021 10/5/2028 1,970 1,959 1,851 1.1

Diamond Sports Group, LLC (6) (14) (15) Television Broadcasting

Second Lien Debt 10.71 % SOFR+ 5.25 % 11/19/2019 8/24/2026 1,935 1,935 92 0.1

East West Manufacturing LLC (15) Fluid Power Pump and Motor Manufacturing

First Lien Debt 11.13 % SOFR+ 5.75 % 2/11/2022 12/22/2028 1,930 1,916 1,855 1.1

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

4 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

First Lien Debt 12.32 % SOFR+ 8.00 % 3/9/2022 5/25/2026 252 246 240 0.1

Second Lien Debt (6) 7.57 % SOFR+ 3.25 % 11/19/2019 8/24/2026 1,935 1,935 248 0.1

2187 2181 488 0.2

East West Manufacturing (15) Fluid Power Pump and Motor Manufacturing

First Lien Debt 10.07 % SOFR+ 5.75 % 2/11/2022 12/22/2028 $ 1,950 $ 1,933 $ 1,873 1.0 %

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 2.88 % 2/11/2022 12/22/2028 — ( 3 ) ( 11 ) —

1950 1930 1862 1.0

Electrical Components International, Inc.

Current-Carrying Wiring Device Manufacturing

Second Lien Debt 12.88 % L+ 8.50 % 4/8/2021 6/26/2026 3,679 3,360 3,468 1.9

EnergySolutions, LLC (15) Hazardous Waste Treatment and Disposal

First Lien Debt 8.48 % L+ 3.75 % 7/8/2021 5/9/2025 1,768 1,765 1,652 0.9

Second Lien Debt 13.96 % SOFR+ 8.50 % 4/8/2021 6/26/2026 $ 3,679 $ 3,452 $ 3,561 2.2 %

Envocore Holding, LLC (F/K/A LRI Holding, LLC) (4) (17) Electrical Contractors and Other Wiring Installation Contractors

6 unchanged sentences

Excelin Home Health, LLC (4) Home Health Care Services

Second Lien Debt 14.23 % cash / 1.25 % PIK

L+ 9.50 % 10/25/2018 9/30/2025 4,277 4,210 3,987 2.2

Second Lien Debt 18.00 % PIK

N/A 10/25/2018 12/31/2025 4,932 4,839 4,173 2.6

GGC Aerospace Topco L.P.

4 unchanged sentences

12/29/2017 50 — —

GoTo Group (F/K/A LogMeIn, Inc.).

(14) (15) Data Processing, Hosting, and Related Services

First Lien Debt 9.14 % L+ 4.75 % 3/26/2021 8/31/2027 2,946 2,945 1,909 1.1

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

December 31, 2022

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

GoTo Group (F/K/A LogMeIn, Inc.) (14) (15) Data Processing, Hosting, and Related Services

First Lien Debt 10.28 % SOFR+ 4.75 % 3/26/2021 8/31/2027 2,916 2,915 1,943 1.2

Heritage Grocers Group, LLC.

3 unchanged sentences

First Lien Debt (15) 11.25 % SOFR+ 5.75 % 10/15/2021 10/15/2027 6,466 6,385 6,466 4.0

First Lien Debt (15) 11.25 % SOFR+ 5.75 % 10/15/2021 10/15/2027 4,089 4,029 4,089 2.5

First Lien Debt (Revolver) (5) 13.25 % Prime+ 4.75 % 10/15/2021 10/15/2027 95 85 95 0.1

First Lien Debt (Delayed Draw) (5) (15) 11.50 % SOFR+ 6.00 % 3/31/2023 10/15/2027 2,706 2,682 2,706 1.7

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 5.75 % 10/15/2021 10/15/2027 — ( 12 ) ( 12 ) —

13,356 13,181 13,356 8.3

Idera Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Second Lien Debt 10.50 % L+ 6.75 % 1/27/2022 3/2/2029 $ 4,000 $ 4,000 $ 3,732 2.1 %

Inergex Holdings, LLC Other Computer Related Services

First Lien Debt (11) 12.15 % cash / 2.00 % PIK

L+ 7.00 % 10/1/2018 10/1/2024 14,868 14,669 14,868 8.2

First Lien Debt (Revolver) (5) n/m (18) L+ 7.00 % 10/1/2018 10/1/2024 — ( 73 ) — —

14,868 14,596 14,868 8.2

Ivanti Software, Inc.

(14) (15) Software Publishers

First Lien Debt 9.01 % L+ 4.25 % 3/26/2021 12/1/2027 2,963 2,972 2,359 1.3

JP Intermediate B, LLC (15) Drugs and Druggists' Sundries Merchant Wholesalers

First Lien Debt 9.91 % L+ 5.50 % 1/14/2021 11/15/2025 5,369 5,227 4,622 2.6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

4 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Second Lien Debt 12.28 % SOFR+ 6.75 % 1/27/2022 3/2/2029 $ 4,000 $ 4,000 $ 3,850 2.4 %

Inergex Holdings, LLC (11) Other Computer Related Services

First Lien Debt 12.58 % cash / 1.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2024 14,868 14,783 14,868 9.2

First Lien Debt (Revolver) 12.58 % cash / 1.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2024 2,344 2,312 2,344 1.4

17,212 17,095 17,212 10.6

Ivanti Software, Inc.

(14) (15) Software Publishers

First Lien Debt 9.91 % SOFR+ 4.25 % 3/26/2021 12/1/2027 2,933 2,940 2,792 1.7

JP Intermediate B, LLC (15) Drugs and Druggists' Sundries Merchant Wholesalers

First Lien Debt 11.14 % SOFR+ 5.50 % 1/14/2021 11/20/2027 4,697 4,513 3,368 2.1

Kreg LLC Other Ambulatory Health Care Services

3 unchanged sentences

17,139 17,060 15,899 9.8

Metasource (15) All Other Business Support Services

Medrina LLC All Other Outpatient Care Centers

First Lien Debt (15) 11.74 % SOFR+ 6.25 % 10/20/2023 10/20/2029 2,234 2,180 2,180 1.3

First Lien Debt (Delayed Draw) (5) (15) n/m (18) SOFR+ 6.25 % 10/20/2023 10/20/2029 — ( 5 ) ( 5 ) —

2,779 2,746 2,511 1.4

Milrose Consultants, LLC (4) (21) Administrative Management and General Management Consulting Services

First Lien Debt (15) 11.33 % SOFR+ 6.50 % 7/16/2019 7/16/2025 27,172 27,151 26,700 14.8

First Lien Debt (Revolver) (5) 11.33 % SOFR+ 6.50 % 7/16/2019 7/16/2025 476 470 448 0.2

27,648 27,621 27,148 15.0

One GI LLC Offices of Other Holding Companies

First Lien Debt (15) 11.13 % L+ 6.75 % 12/13/2021 12/22/2025 7,508 7,395 7,039 3.9

First Lien Debt (Delayed Draw) (5) (15) 11.14 % L+ 6.75 % 12/13/2021 12/22/2025 3,946 3,866 3,698 2.0

First Lien Debt (Revolver) (5) n/m (18) L+ 6.75 % 12/13/2021 12/22/2025 — ( 21 ) ( 90 ) —

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.25 % 10/20/2023 10/20/2029 — ( 8 ) ( 8 ) —

2,234 2,167 2,167 1.3

Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) Software Publishers

First Lien Debt (6) 4.00 % N/A 3/13/2018 1/1/2024 16,648 14,113 6,864 3.8

PM Acquisition LLC All Other General Merchandise Stores

Common Equity ( 499 units) (10) (13)

Metasource, LLC (15) All Other Business Support Services

First Lien Debt 11.72 % cash / 0.50 % PIK

SOFR+ 6.25 % 5/17/2022 5/17/2027 2,755 2,733 2,597 1.6

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 6.25 % 5/17/2022 5/17/2027 — ( 4 ) ( 69 ) —

2,755 2,729 2,528 1.6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

4 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

RC Buyer, Inc.

Other Automotive Mechanical and Electrical Repair and Maintenance

Second Lien Debt 11.23 % L+ 6.50 % 6/24/2022 7/30/2029 1,125 1,083 1,064 0.6

One GI LLC Offices of Other Holding Companies

First Lien Debt (15) 12.21 % SOFR+ 6.75 % 12/13/2021 12/22/2025 $ 7,432 $ 7,358 $ 7,066 4.4 %

First Lien Debt (15) 12.21 % SOFR+ 6.75 % 12/13/2021 12/22/2025 3,916 3,876 3,723 2.3

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.75 % 12/13/2021 12/22/2025 — ( 14 ) ( 71 ) —

11,348 11,220 10,718 6.7

Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) (6) Software Publishers

First Lien Debt 6.50 % N/A 3/13/2018 12/31/2025 16,648 14,113 6,858 4.2

PM Acquisition LLC All Other General Merchandise Stores

Common Equity ( 499 units) (10)

9/30/2017 499 551 0.3

Reception Purchaser LLC (15) Transportation and Warehousing

1 unchanged sentence

Redstone Holdco 2 LP (F/K/A RSA Security) (15) Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

First Lien Debt (14) 9.11 % L+ 4.75 % 4/16/2021 4/27/2028 $ 2,769 $ 2,756 $ 1,931 1.1 %

Second Lien Debt 12.11 % L+ 7.75 % 4/16/2021 4/27/2029 4,450 4,400 3,350 1.9

First Lien Debt (14) 10.22 % SOFR+ 4.75 % 4/16/2021 4/27/2028 1,715 1,708 1,307 0.8

Second Lien Debt 13.22 % SOFR+ 7.75 % 4/16/2021 4/27/2029 4,450 4,407 3,272 2.0

6,165 6,115 4,579 2.8

4 unchanged sentences

(15) (21) Other Industrial Machinery Manufacturing

First Lien Debt 12.98 % L+ 8.25 % 8/31/2021 8/31/2026 3,985 3,817 3,617 2.0

First Lien Debt (Delayed Draw) (5) 12.98 % L+ 8.25 % 8/31/2021 8/31/2026 1,202 1,186 1,042 0.6

Warrants (warrants to purchase up to $ 600,000 in common stock)

First Lien Debt (11) 14.36 % Cash / 0.50 % PIK

SOFR+ 8.75 % 8/31/2021 8/31/2026 2,858 2,769 2,633 1.6

First Lien Debt (11) 14.36 % Cash / 0.50 % PIK

SOFR+ 8.75 % 8/31/2021 8/31/2026 862 854 795 0.5

Warrants (warrants to purchase up $ 218,000 in common stock) (10)

8/31/2021 8/14/2028 (12) 200 72 —

3 unchanged sentences

9/4/2020 160 77 —

Signal Parent, Inc.

(14) (15) New Single-Family Housing Construction (except For-Sale Builders)

First Lien Debt 7.89 % L+ 3.50 % 3/25/2021 4/3/2028 1,822 1,807 1,566 0.9

Spring Education Group, Inc.

(F/K/A SSH Group Holdings, Inc.) (15) Child Day Care Services

Second Lien Debt 12.98 % L+ 8.25 % 7/26/2018 7/30/2026 6,399 6,375 6,182 3.4

SSJA Bariatric Management LLC (15) Offices of Physicians, Mental Health Specialists

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

4 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Signal Parent, Inc.

(14) (15) New Single-Family Housing Construction (except For-Sale Builders)

First Lien Debt 8.96 % SOFR+ 3.50 % 3/25/2021 4/3/2028 $ 1,803 $ 1,791 $ 1,616 1.0 %

Spear Education Holdings, LLC (15)

First Lien Debt Professional and Management Development Training 13.00 % SOFR+ 7.50 % 2/10/2023 12/15/2027 1,485 1,455 1,484 0.9

SSJA Bariatric Management LLC (15) Offices of Physicians, Mental Health Specialists

First Lien Debt 10.75 % SOFR+ 5.25 % 8/26/2019 8/26/2024 9,575 9,563 9,186 5.7

First Lien Debt 10.75 % SOFR+ 5.25 % 12/31/2020 8/26/2024 1,035 1,033 993 0.6

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 5.25 % 8/26/2019 8/26/2024 — ( 2 ) ( 11 ) —

First Lien Debt 10.75 % SOFR+ 5.25 % 12/8/2021 8/26/2024 2,607 2,600 2,501 1.5

First Lien Debt (Revolver) (5) 10.75 % SOFR+ 5.25 % 8/26/2019 8/26/2024 200 199 173 0.1

13,417 13,395 12,853 7.9

1 unchanged sentence

First Lien Debt 12.41 % SOFR+ 6.75 % 12/30/2021 12/30/2026 3,042 3,023 3,042 1.9

First Lien Debt (Delayed Draw) (5) 11.84 % SOFR+ 7.59 % 12/30/2021 12/30/2026 1,217 1,205 1,184 0.7

First Lien Debt 13.10 % SOFR+ 7.45 % 12/30/2021 12/30/2026 1,460 1,449 1,460 0.9

4,502 4,472 4,502 2.8

4 unchanged sentences

Industrial Machinery and Equipment Merchant Wholesalers

Second Lien Debt 12.38 % L+ 8.00 % 5/15/2018 4/30/2026 9,073 9,071 9,073 5.0

The Escape Game, LLC (4) Other amusement and recreation industries

First Lien Debt 11.38 % L+ 7.00 % 12/21/2021 12/22/2024 16,333 16,333 16,497 9.1

First Lien Debt (Revolver) (5) n/m (18) L+ 7.00 % 12/21/2021 12/22/2024 — ( 31 ) — —

16,333 16,302 16,497 9.1

(14) (15) Directory and Mailing List Publishers

First Lien Debt 12.88 % L+ 8.50 % 2/18/2021 3/1/2026 3,978 3,910 3,930 2.2

Second Lien Debt 13.46 % SOFR+ 8.00 % 5/15/2018 4/30/2026 9,073 9,072 9,073 5.6

Tolemar Acquisition, Inc.

Motorcycle, Bicycle, and Parts Manufacturing

First Lien Debt 9.32 % L+ 5.75 % 10/14/2021 10/14/2026 15,504 15,445 15,504 8.6

First Lien Debt (Revolver) (5) 12.25 % Prime + 4.75 % 10/14/2021 10/14/2026 438 428 438 0.2

First Lien Debt (15) 11.75 % SOFR+ 6.00 % 10/14/2021 10/14/2026 15,347 15,304 14,334 8.8

First Lien Debt (Revolver) (5) 11.75 % SOFR+ 6.00 % 10/14/2021 10/14/2026 592 585 422 0.3

15,939 15,889 14,756 9.1

TruGreen Limited Partnership Landscaping Services

Second Lien Debt 12.91 % L+ 8.50 % 5/13/2021 11/2/2028 4,500 4,611 4,226 2.3

Second Lien Debt 14.14 % SOFR+ 8.50 % 5/13/2021 11/2/2028 4,500 4,592 4,287 2.6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

7 unchanged sentences

4/16/2013 $ 9 $ — — %

Warrants ( 3,976 units)

7/26/2012 4/16/2023 (12) 9 11 —

(F/K/A KNS Acquisition Corp.) (15) Electronic Shopping and Mail-Order Houses

First Lien Debt 10.42 % L+ 6.25 % 4/16/2021 4/21/2027 6,781 6,747 6,515 3.6

Yahoo / Verizon Media (14) (15) Internet Publishing and Broadcasting and Web Search Portals

First Lien Debt 9.88 % L+ 5.50 % 7/21/2021 9/1/2027 $ 3,127 $ 3,100 $ 2,843 1.6 %

First Lien Debt 11.72 % SOFR+ 6.25 % 4/16/2021 4/21/2027 6,606 6,581 6,313 3.9

Total Debt and Equity Investments $ 285,417 $ 287,218 $ 254,411 157.0 %

Structured Finance Securities (21)

Apex Credit CLO 2020 (9) (16)

Subordinated Notes 19.26 % 11/16/2020 10/20/2031 $ 11,080 $ 9,915 $ 7,996 4.4 %

Apex Credit CLO 2020 Ltd.

Subordinated Notes 18.54 % 5/28/2021 7/18/2034 8,630 7,198 6,141 3.4

Apex Credit CLO 2022-1A (9) (16)

Subordinated Notes 16.48 % 4/28/2022 4/22/2033 10,726 8,389 8,611 4.8

Mezzanine Debt - Class E 9.73 % L+ 5.65 % 2/17/2022 1/15/2032 6,000 5,749 5,272 2.9

Subordinated Notes 14.89 % N/A 11/16/2020 10/20/2031 $ 11,080 $ 10,191 $ 7,031 4.3 %

Apex Credit CLO 2021 Ltd.

Subordinated Notes 21.61 % N/A 5/28/2021 7/18/2034 8,630 6,977 5,711 3.5

Apex Credit CLO 2022-1 Ltd.

Subordinated Notes 17.30 % N/A 4/28/2022 4/22/2033 10,726 8,858 6,961 4.3

Ares L CLO Ltd.

Mezzanine Debt - Class E 11.31 % SOFR+ 5.65 % 2/17/2022 1/15/2032 6,000 5,832 5,474 3.4

Barings CLO 2019-I Ltd.

Mezzanine Debt - Class E 10.94 % L+ 6.86 % 2/23/2022 4/15/2035 8,000 7,899 7,308 4.1

Mezzanine Debt - Class E 12.52 % SOFR+ 6.86 % 2/23/2022 4/15/2035 8,000 7,918 7,725 4.8

Battalion CLO XI Ltd.

Mezzanine Debt - Class E 12.51 % SOFR+ 6.85 % 4/24/2022 4/24/2034 6,000 5,918 5,511 3.4

Brightwood Capital MM CLO 2023-1, Ltd.

Mezzanine Debt - Class D 11.85 % SOFR+ 6.46 % 9/28/2023 10/15/2035 915 888 888 0.5

Mezzanine Debt - Class E 15.75 % SOFR+ 10.36 % 9/28/2023 10/15/2035 2,133 1,929 1,929 1.2

Subordinated Notes (9) (16) 14.56 % N/A 9/28/2023 10/15/2035 5,494 5,018 5,018 3.1

8,542 7,835 7,835 4.8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

4 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Battalion CLO XI, Ltd.

Mezzanine Debt - Class E 11.17 % L+ 6.85 % 4/24/2022 4/24/2034 6,000 5,855 5,445 3.0

Brightwood Capital MM CLO 2022-1, LTD (17)

Loan accumulation facility 14.50 % 1/5/2022 12/31/2032 8,500 8,500 8,299 4.6

Dryden 53 CLO, LTD.

Subordinated Notes - Income 23.00 % 10/26/2020 1/15/2031 $ 2,700 $ 1,499 $ 1,029 0.5 %

Subordinated Notes 22.97 % 10/26/2020 1/15/2031 2,159 1,199 823 0.5

Subordinated Notes - Income 8.04 % N/A 10/26/2020 1/15/2031 $ 2,700 $ 1,280 $ 622 0.3 %

Subordinated Notes 7.00 % N/A 10/26/2020 1/15/2031 2,159 1,046 497 0.3

4,859 2,326 1,119 0.7

Dryden 76 CLO, Ltd.

Subordinated Notes 19.75 % 9/27/2019 10/20/2032 2,750 2,266 2,030 1.1

Elevation CLO 2017-7, Ltd.

Subordinated Notes 0 % 2/6/2019 7/15/2030 5,449 1,311 118 0.1

Subordinated Notes 16.12 % N/A 9/27/2019 10/20/2032 2,750 2,332 1,779 1.1

Flatiron CLO 18, Ltd.

Subordinated Notes 20.94 % 1/2/2019 4/17/2031 9,680 6,907 5,587 3.1

Subordinated Notes 7.62 % N/A 1/2/2019 4/17/2031 9,680 6,314 4,989 3.1

Madison Park Funding XXIII, Ltd.

Subordinated Notes 23.69 % 1/8/2020 7/27/2047 10,000 6,112 5,319 2.9

Subordinated Notes 16.45 % N/A 1/8/2020 7/27/2047 10,000 5,558 4,744 2.9

Madison Park Funding XXIX, Ltd.

Subordinated Notes 19.83 % 12/22/2020 10/18/2047 9,500 6,459 5,645 3.1

Subordinated Notes 13.78 % N/A 12/22/2020 10/18/2047 9,500 5,927 5,355 3.3

Monroe Capital MML CLO X, Ltd.

1 unchanged sentence

Octagon Investment Partners 39, Ltd.

Subordinated Notes 18.97 % 1/23/2020 10/20/2030 7,000 4,504 3,202 1.8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

December 31, 2022

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Subordinated Notes 4.98 % N/A 1/23/2020 10/20/2030 7,000 3,962 2,171 1.3

Park Avenue Institutional Advisers CLO Ltd 2021-1

Mezzanine Debt - Class E 11.54 % L+ 7.30 % 1/26/2021 1/20/2034 1,000 978 910 0.5

Redding Ridge 4 (9) (16)

Subordinated Notes 17.49 % 3/4/2021 4/15/2030 1,300 1,034 695 0.4

Regatta II Funding

Mezzanine Debt - Class DR2 11.03 % L+ 6.95 % 6/5/2020 1/15/2029 800 778 738 0.4

Mezzanine Debt - Class D 12.98 % SOFR+ 7.30 % 1/26/2021 1/20/2034 1,000 982 982 0.6

Redding Ridge 4 Ltd.

Subordinated Notes 7.46 % N/A 3/4/2021 4/15/2030 1,300 910 544 0.3

Regatta XXII Funding Ltd

1 unchanged sentence

THL Credit Wind River 2019‐3 CLO Ltd.

Subordinated Notes 14.24 % 4/5/2019 4/15/2031 7,000 5,347 3,926 2.2

Trinitas CLO VIII (9) (16)

Subordinated Notes 23.02 % 3/4/2021 7/20/2117 5,200 3,060 2,216 1.2

Venture 45 CLO Ltd.

Mezzanine Debt - Class E 11.66 % SOFR+ 7.70 % 4/18/2022 7/20/2035 3,000 2,931 2,876 1.6

Wellfleet CLO 2018-2 (9) (16)

Subordinated Notes 23.88 % 3/4/2021 10/20/2031 1,000 670 471 0.3

Total Structured Finance Securities $ 131,474 $ 102,477 $ 88,518 49.1 %

Total Non-control/Non-affiliate Investments $ 474,173 $ 446,620 $ 402,771 223.2 %

Subordinated Notes 10.59 % N/A 4/5/2019 4/15/2031 7,000 4,883 2,941 1.8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

Consolidated Schedule of Investments (continued)

December 31, 2023

4 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Trinitas CLO VIII, Ltd.

Subordinated Notes 3.95 % N/A 3/4/2021 7/20/2117 $ 5,200 $ 2,891 $ 1,352 0.8 %

Venture 45 CLO, Limited

Mezzanine Debt - Class E 13.12 % SOFR+ 7.70 % 4/18/2022 7/20/2035 3,000 2,942 2,579 1.6

Wellfleet CLO 2018-2, Ltd.

Subordinated Notes 9.99 % N/A 3/4/2021 10/20/2031 1,000 627 270 0.2

Total Structured Finance Securities $ 125,267 $ 97,121 $ 79,045 48.8 %

Total Non-control/Non-affiliate Investments $ 410,684 $ 384,339 $ 333,456 205.8 %

Affiliate Investments

10 unchanged sentences

Master Cutlery, LLC (4) (10) (19) Sporting and Recreational Goods and Supplies Merchant Wholesalers

Subordinated Loan (6) (11) 13.00 % PIK

Subordinated Debt (6) (11) 13.00 % PIK

N/A 4/17/2015 5/25/2024 9,749 4,680 — —

8 unchanged sentences

1/1/2014 217 70,927 43.8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

TalentSmart Holdings, LLC (10) (13) (19) Professional and Management Development Training

8 unchanged sentences

Total Affiliate Investments $ 9,749 $ 19,191 $ 86,831 53.6 %

Control Investment

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

December 31, 2022

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Eblens Holdings, Inc.

(20) Shoe Store

Subordinated Loan (6) 13.00 % PIK

N/A 7/13/2017 10/3/2025 $ 4,945 $ 4,605 $ 1,104 0.6 %

Subordinated Loan (6) 13.00 % PIK

N/A 7/13/2017 10/3/2025 4,945 4,605 — —

Common Equity ( 356 Class A units) (10)

10/3/2022 950 — —

9,890 10,160 1,104 0.6

Total Control Investment $ 9,890 $ 10,160 $ 1,104 0.6 %

Total Investments $ 420,432 $ 403,530 $ 420,287 259.4 %

1 unchanged sentence

The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.

(2) At December 31, 2022, the Company held loans with an aggregate principal amount of $ 312,595 , or 87 % of the total loan portfolio, that bore interest at a variable rate indexed to LIBOR (L) or SOFR, and reset monthly, quarterly, or semi-annually.

For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect at December 31, 2022.

For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect as of December 31, 2023.

Unless otherwise noted, all investments with a stated PIK rate require interest payments with the issuance of additional securities as payment of the entire PIK provision.

6 unchanged sentences

See Note 4 for further details.

(7) As of December 31, 2022, the effective accretable yield was estimated to be 0 %, as the aggregate amount of projected distributions, including projected distributions related to liquidation of the underlying portfolio upon the security's anticipated optional redemption, was less than current amortized cost.

Projected distributions are periodically monitored and re-evaluated.

(7) Equity participation rights issued by unaffiliated third party fully covered with underlying positions in the portfolio company.

2 unchanged sentences

SS Acquisition, LLC 12.41 % 11.89 % 0.51 %

SS Acquisition, LLC (Delayed Draw) 11.84 % 10.49 % 1.35 %

(9) The rate disclosed on subordinated note investments was the estimated effective yield, generally established at purchase and re-evaluated upon receipt of distributions, and based upon projected amounts and timing of future distributions and the projected amount and timing of terminal principal payments at the time of estimation.

The estimated yield and investment cost may ultimately not be realized.

SS Acquisition, LLC 13.10 % 11.89 % 1.21 %

The estimated effective yield is based upon projected amounts and timing of future distributions and the projected amounts and timing of terminal principal payments at the time of estimation.

The estimated effective yield and investment cost may ultimately not be realized.

Projected cash flows, including the amounts and timing of terminal principal payments, which generally are projected to occur prior to the contractual maturity date, were utilized in deriving the effective yield of the investments.

(10) Non-income producing.

(11) The interest rate on these investments contains a PIK provision, whereby the issuer had the option to make interest payments in cash or with the issuance of additional securities as payment of the entire PIK provision.

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

(11) The interest rate on these investments contains a PIK provision, whereby the issuer has the option to make interest payments in cash or with the issuance of additional securities as payment of the entire PIK provision.

The interest rate in the schedule represents the current interest rate in effect for these investments.

The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed as of December 31, 2023:

Portfolio Company Investment Type Range of PIK

Portfolio Company Investment Type Maximum PIK

Rate Allowed Range of PIK

Option Range of Cash

Option Maximum PIK

Inergex Holdings, LLC Senior Secured Loan 0 % to 2.00 %

Inergex Holdings, LLC First Lien Debt 1.00 % 0 % to 1.00 %

12.58 % to 13.58 %

Master Cutlery, LLC Senior Secured Loan 0 % to 13.00 %

Inergex Holdings, LLC First Lien Debt (Revolver) 1.00 % 0 % to 1.00 %

12.58 % to 13.58 %

Kreg LLC First Lien Debt 2.50 % 0 % to 2.00 %

9.75 % to 11.75 %

Master Cutlery, LLC Subordinated Debt 13.00 % 0 % to 13.00 %

0 % to 13.00 %

RumbleOn, Inc.

First Lien Debt 0.50 % 0 % to 0.50 %

14.36 % to 14.86 %

(12) Represents expiration date of the warrants.

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments

December 31, 2022

(Dollar amounts in thousands)

(13) All or portion of investment held by a wholly owned subsidiary subject to income tax.

2 unchanged sentences

(15) Investments (or portion thereof) held by OFSCC-FS.

These assets were pledged as collateral of the BNP Facility and could not be pledged under any other debt obligation of the Company.

These assets are pledged as collateral of the BNP Facility and cannot be pledged under any other debt obligation of the Company.

(16) Amortized cost reflects accretion of effective yield less any cash distributions received or entitled to be received from CLO subordinated note investments.

CLO subordinated note positions are entitled to recurring distributions, which are generally equal to the residual cash flow of payments received on underlying securities less contractual payments to debt holders and fund expenses.

(17) Loan accumulation facilities are financing structures intended to aggregate loans that are expected to form part of the portfolio of a future CLO vehicle.

Reported yields represent an estimated yield to be earned on the investment.

Income notes associated with loan accumulation facilities generally pay returns equal to the income earned on facility assets, less costs of debt financing and manager costs and expenses.

In January 2023, the Company prospectively adjusted the estimated yield on this position to 0.00 % due to an adverse change in estimated cash flows in accordance with ASC 325-40.

As of December 31, 2022, the fair value of the loan accumulation facility was determined by a probability weighted net asset value (“NAV”) analysis.

(17) The Company holds at least one seat on the portfolio company’s board of directors.

(18) Not meaningful as there is no outstanding balance on the revolver or delayed draw loan.

The Company earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.

(19) The Company holds at least one seat on the portfolio company’s board of directors.

(19) The Company has an observer seat on the portfolio company’s board of directors.

3 unchanged sentences

As of December 31, 2023, approximately 81 % of the Company's assets were qualifying assets.

(23) Equity participation rights issued by unaffiliated third party fully covered with underlying positions in the portfolio company.

See Notes to Consolidated Financial Statements.

4 unchanged sentences

The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (“1940 Act”).

In addition, for income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of Code under the Internal Revenue Code of 1986, as amended (the “Code”).

In addition, for income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M under the Internal Revenue Code of 1986, as amended (the “Code”).

The Company’s investment objective is to provide stockholders with both current income and capital appreciation through its strategic investment focus primarily on debt investments and, to a lesser extent, equity investments primarily in middle-market companies principally in the United States.

In addition, the Company may invest in collateralized loan obligation (“CLO”) mezzanine debt, subordinated (i.e., residual or equity) notes and loan accumulation facility securities (collectively referred to as “Structured Finance Securities”).

OFS Capital Management, LLC (“OFS Advisor”), a registered investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), a wholly owned subsidiary of Orchard First Source Asset Management, LLC, a full-service provider of capital and leveraged finance solutions to U.S.

corporations (“OFSAM”), manages the day-to-day operations of, and provides investment advisory services to, the Company.

OFS Capital Management, LLC (“OFS Advisor”), a registered investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), a wholly owned subsidiary of Orchard First Source Asset Management, LLC (“OFSAM”), a full-service provider of capital and leveraged finance solutions to U.S.

corporations, manages the day-to-day operations of, and provides investment advisory services to, the Company.

OFS Advisor also serves as the investment adviser for Hancock Park Corporate Income, Inc.

3 unchanged sentences

(“OCCI”), a non-diversified, externally managed, closed-end management investment company that is registered as an investment company under the 1940 Act and that primarily invests in Structured Finance Securities.

Additionally, OFS Advisor serves as the investment adviser to separately-managed accounts and sub-advisor to investment companies managed by an affiliate.

The Company may also make investments through OFSCC-FS, LLC (“OFSCC-FS”), a wholly owned and consolidated special-purpose vehicle formed in April 2019 for the purpose of acquiring senior secured loan investments;

Additionally, OFS Advisor serves as the investment adviser to separately-managed accounts and as the sub-advisor to investment companies managed by an affiliate.

The Company may make investments through OFSCC-FS, LLC (“OFSCC-FS”), a wholly owned and consolidated special-purpose vehicle formed in April 2019 for the purpose of acquiring senior secured loan investments;

and through OFSCC-MB, Inc.

(“OFSCC-MB”), a wholly owned and consolidated subsidiary taxed under subchapter C of the Code, that generally holds the equity investments of the Company that are taxed as pass-through entities.

OFS SBIC I LP (“SBIC I LP”), the Company’s wholly owned and consolidated investment company subsidiary licensed under the U.S.

Small Business Administration’s (“SBA”) small business investment company program (“SBIC Program”), was subject to SBA regulatory requirements under the Small Business Investment Act of 1958, as amended (“SBIC Act”) for the period covered by the Consolidated Financial Statements.

OFS SBIC I, LP (“SBIC I LP”), a wholly owned and consolidated subsidiary, was previously licensed under the U.S.

Small Business Administration’s (“SBA”) small business investment company program (“SBIC Program”).

On April 17, 2024, SBIC I LP surrendered its license to operate under the SBIC Program and no longer is subject to SBA regulatory requirements under the Small Business Investment Act of 1958, as amended.

Summary of Significant Accounting Policies

Basis of presentation:

The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including ASC Topic 946, Financial Services-Investment Companies , and the reporting requirements for Form 10-K, the 1940 Act, and Articles 6 and 12 of Regulation S-X.

The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including Accounting Standards Codification (“ASC”) Topic 946, Financial Services-Investment Companies , and the reporting requirements for Form 10-K, the 1940 Act, and Articles 6 and 12 of Regulation S-X.

The consolidated financial statements include all adjustments, consisting only of normal and recurring accruals and adjustments, necessary for fair presentation in accordance with GAAP.

10 unchanged sentences

Fair value is determined through the use of models and other valuation techniques, valuation inputs, and assumptions market participants would use to value the financial instrument.

Highest priority is given to prices for identical financial instruments quoted in active markets (Level 1) and the lowest priority is given to unobservable valuation inputs (Level 3).

The availability of observable inputs can vary significantly and is affected by many factors, including the type of product, whether the product is

Highest priority is given to prices for identical financial instruments quoted in active markets (Level 1) and the lowest priority is given to fair value estimates based on unobservable inputs (Level 3).

The availability of observable inputs can vary significantly and is affected by many factors, including the type of product, whether

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

new to the market, whether the product is traded on an active exchange or in the secondary market, and the current market conditions.

To the extent that the valuation is based on unobservable inputs, the determination of fair value requires more judgment.

Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3 (i.e., those instruments valued using unobservable inputs), which comprise the majority of the Company’s investments.

the product is new to the market, whether the product is traded on an active exchange or in the secondary market, and current market conditions.

To the extent that the valuation is based on less observable or unobservable inputs, the determination of fair value requires more judgment.

Accordingly, the degree of judgment exercised by OFS Advisor in determining fair value is greatest for financial instruments classified as Level 3 (i.e., those instruments valued using unobservable inputs), which comprise the majority of the Company’s investments.

See Note 5 for details.

Changes to the Company’s and OFS Advisor's valuation policies are reviewed and approved by management and the Company’s board of directors (the “Board”).

As the Company’s investments change, markets change, new products develop, and valuation inputs become more or less observable, the Company will continue to refine its valuation methodologies.

Material changes to OFS Advisor’s valuation policy are reviewed and approved by management and the Company’s board of directors (the “Board”).

As the Company’s investments change, markets change, new products develop, and valuation inputs become more or less observable, OFS Advisor, as valuation designee, will continue evaluating its valuation methodologies.

See Note 5 for more detailed disclosures of the Company’s fair value measurements of its financial instruments.

4 unchanged sentences

The Company evaluates the issuers of its Control Investments for significance in accordance with Rules 3-09 and 4-08(g) of Regulation S-X.

No issuers of Control Investments were considered a significant subsidiary under these rules as of or for the years ended December 31, 2023, 2022 and 2021.

As of December 31, 2024 and 2023, the Company did not have any investments classified as Control Investments, and as of December 31, 2022, no issuers of Control Investments were considered a significant subsidiary under these rules.

Use of estimates:

2 unchanged sentences

Reportable segments:

The Company has a single reportable segment and single operating segment structure.

The Company’s cash balances are maintained with a member bank of the Federal Deposit Insurance Corporation (“FDIC”), and at times, such balances exceed the FDIC insurance limits.

In November 2023, the FASB issued Accounting Standards Update (“ASU”) No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis.

ASU 2023-07 is effective on a retrospective basis for annual periods beginning after December 15, 2023, for interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted.

The Company adopted ASU 2023-07 as of December 31, 2024.

The Company determined it operates through a single operating and reporting segment with a single investment objective to provide its stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments.

Pursuant to ASU 2023-07, the Company identified its Chief Executive Officer as the chief operating decision maker (“CODM”).

The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s net increase (decrease) in net assets resulting from operations.

As the Company’s operations comprise of a single reporting segment, the segment assets are reflected on the accompanying consolidated statements of assets and liabilities and the significant segment expenses are listed on the consolidated statements of operations.

Cash and cash equivalents:

The Company’s cash balances are maintained with member banks of the Federal Deposit Insurance Corporation (“FDIC”), and, such balances generally exceed the FDIC insurance limits.

The Company does not believe its cash balances are exposed to any significant credit risk.

As of December 31, 2023 and 2022, cash includes aggregate amounts totaling $ 45,349 and 14,937 , respectively, held in cash and cash equivalent accounts at US Bank N.A.

and Citibank N.A.

In addition, the Company’s use of cash held by SBIC I LP was limited by SBA regulation and use of cash held by OFSCC-FS is limited by the terms and conditions of the BNP Facility, including but not limited to, the payment of interest expense and principal on the outstanding borrowings.

Cash and cash equivalent balances are held in US Bank Trust Company, National Association and Citibank N.A.

money market deposit accounts.

In addition, the Company’s use of cash and cash equivalents held by OFSCC-FS is limited by the terms and conditions of the BNP Facility, including but not limited to, the payment of interest expense and principal on the outstanding borrowings.

Revenue recognition:

Interest income :

Interest income from the Company’s loan and CLO debt investments is recognized on an accrual basis and reported as an interest receivable until collected.

Interest income from the Company’s loan and CLO mezzanine debt investments is recognized on an accrual basis and reported as interest receivables until collected.

Interest income is accrued based on the outstanding principal amount on the consolidated schedule of investments and the contractual terms of the debt investment.

5 unchanged sentences

See Non-Accrual Loans section.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Loan origination fees, original issue discount (“OID”), market discount or premium, and loan amendment fees (collectively, “Net Loan Fees”) are recorded as an adjustment to the amortized cost of the investment, and accreted or amortized as an adjustment to interest income over the life of the respective debt investment using a method that approximates the effective interest method.

3 unchanged sentences

Any resulting difference between the face amount of the debt and its recorded cost resulting from the assignment of value to the equity investment is treated as OID, and accreted into interest income as described above.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Interest income - Structured Finance Securities :

Structured Finance Securities include CLO mezzanine debt, CLO subordinated notes and loan accumulation facility positions.

Interest income from investments in CLO subordinated securities is recognized on the basis of the estimated effective yield to expected redemption utilizing estimated cash flows in accordance with ASC Subtopic 325-40, Beneficial Interests in Securitized Financial Assets .

The Company monitors the expected cash flows from its CLO subordinated notes, and the accretable yields are generally established at purchase, and reevaluated upon the receipt of the initial distribution and each subsequent quarter thereafter.

These estimated cash flows are subject to a reasonable possibility of near-term change due to economic and credit market conditions, and the effect of these changes could be material.

Interest income from investments in CLO subordinated notes is recognized on the basis of the estimated effective yield to expected redemption utilizing assumed cash flows in accordance with ASC Subtopic 325-40, Beneficial Interests in Securitized Financial Assets .

The Company monitors the estimated cash flows from its CLO subordinated notes, and the accretable yields are generally established at purchase, and re-evaluated upon the receipt of the initial distribution and each subsequent quarter thereafter.

Expected cash flows inherent in the Company’s estimates of accretable yields are based on expectations of defaults and loss-on-default severity, as well as other loan-performance assumptions, impacting the loans in the underlying CLO portfolios, as well as the estimated timing of redemption and the associated liquidation price of the terminal principal payment upon redemption.

These assumed cash flows represent significant estimates and are subject to a reasonable possibility of near-term change due to economic and credit market conditions, and the effect of these changes could be material.

The Company ultimately may not realize income accreted on CLO subordinated note securities.

Interest income from investments in loan accumulation facilities is recognized on an accrual basis based on an estimated yield.

Income notes associated with loan accumulation facilities generally pay returns equal to the actual income earned on facility assets less costs of senior financing and manager costs.

Income notes associated with loan accumulation facilities generally earn returns equal to the actual income earned on facility assets less costs of senior financing and manager costs.

Interest income is generally received upon the earlier of the closing of the CLO securitization or liquidation of the underlying portfolio.

8 unchanged sentences

The Company discontinues accrual of PIK dividends when there is reasonable doubt that the income will ultimately be collected.

The Company generates fee revenue in the form of syndication, prepayment, and other contractual fees, that are recognized as the related services are rendered.

In the general course of its business, the Company receives certain fees, such as management fees, from portfolio companies which are non-recurring in nature.

The Company generates fee revenue in the form of syndication, prepayment, and other contractual fees, that are recognized as the related services are rendered, which, when received from portfolio companies are non-recurring in nature.

Prepayment fees are received on certain loans when repaid prior to their scheduled due date, which are recognized as earned when received.

4 unchanged sentences

Unsettled trades as of the statement of assets and liabilities date are included in receivable for investments sold and payable for investments purchased, as applicable.

Primary market new issue trades are recorded on the closing and issuance of the security.

Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of the investment on the trade date.

Investments are valued at fair value in accordance with ASC 820 as determined in good faith by OFS Advisor, as the valuation designee, under the oversight of the Board.

Investments are reported at fair value in accordance with ASC 820 as determined in good faith by OFS Advisor, as the valuation designee, under the active supervision of the Board.

The Company reports changes in the fair value of investments, relative to the amortized cost of investments, as net unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Non-accrual loans :

2 unchanged sentences

Additionally, Net Loan Fees are no longer recognized as of the date the loan is placed on non-accrual status.

Interest payments subsequently received on non-accrual investments may be recognized as income or applied to amortized cost depending upon management’s judgment.

Depending upon management’s judgment, interest payments subsequently received on non-accrual investments may be recognized as interest income or applied as a reduction to amortized cost.

Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments and, in the judgment of management, it is probable that the Company will collect all principal and interest from the investment.

2 unchanged sentences

The Company has elected to be treated, and intends to qualify annually, as a RIC under Subchapter M of the Code.

To qualify as a RIC, the Company must, among other things, meet certain source of income and asset diversification requirements, and timely distribute at least 90% of its investment company taxable income (“ICTI”) annually to its

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

stockholders.

The Company has made, and intends to continue to make, requisite distributions to its stockholders, which generally relieves the Company from U.S.

To qualify for tax treatment as a RIC, the Company must, among other things, meet certain source of income and asset diversification requirements, and timely distribute at least 90% of its annual investment company taxable income (“ICTI”) to its stockholders.

The Company has made, and intends to continue to make, the requisite distributions to its stockholders, which generally relieves the Company from U.S.

federal income taxes.

4 unchanged sentences

An excise tax liability is recognized when the Company determines its estimated current year annual ICTI, capital gain net income, and any undistributed ICTI and capital gain net income from the prior year, as defined in the Code, exceeds distributions paid during the calendar year.

For the years ended December 31, 2023, 2022 and 2021, the Company accrued U.S.

federal excise taxes of $ 0 , $ 100 and $ 0 , respectively.

For the years ended December 31, 2024, 2023 and 2022, the Company recognized U.S.

federal excise taxes (refunds) of $( 71 ), $ 0 and $ 100 , respectively.

The Company may utilize OFSCC-MB when making equity investments in portfolio companies taxed as pass-through entities to meet its source-of-income requirements as a RIC.

4 unchanged sentences

GAAP requires recognition of accrued interest and penalties related to uncertain tax benefits as income tax expense.

There were no uncertain income tax positions at December 31, 2023, 2022 and 2021.

There were no uncertain income tax positions as of December 31, 2024 and 2023.

The current and prior three tax years remain subject to examination by U.S.

2 unchanged sentences

Distributions to common stockholders are recognized on the record date.

The timing of distributions as well as the amount to be paid out as a distribution is determined by the Board each quarter.

The amount, timing and form of distributions is determined by the Board each quarter.

Distributions from net investment income and net realized gains are determined in accordance with the Code.

1 unchanged sentence

Distributions paid in excess of current and accumulated ICTI, and not capital gains, are considered returns of capital to stockholders.

Net investment income determined in accordance with tax regulations may differ from net investment income for financial reporting purposes.

Differences may be temporary or permanent.

Permanent differences result in a reclassification between capital accounts.

Additionally, certain short-term capital gains may be reported as ordinary income for tax purposes.

Distributions paid by the Company in accordance with RIC requirements are subject to re-characterization for tax purposes.

The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and distributions paid for the full year.

The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash.

2 unchanged sentences

Deferred debt issuance costs:

Deferred debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings.

Deferred debt issuance costs are presented as a direct reduction of the related debt liability on the consolidated statements of assets and liabilities, except for deferred debt issuance costs associated with the Company’s revolving line of credit arrangements, which are included in prepaid expenses and other assets on the consolidated statements of assets and liabilities.

Deferred debt issuance costs represent underwriting discounts, fees and other direct incremental costs incurred in connection with the Company’s borrowings.

Deferred debt issuance costs are presented as a direct reduction of the related debt liability on the consolidated statements of assets and liabilities, except for deferred debt issuance costs

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

associated with the Company’s revolving line of credit arrangements, which are included in prepaid expenses and other assets on the consolidated statements of assets and liabilities.

Unamortized deferred debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2024 and 2023, were $ 681 and $ 1,062 , respectively.

Deferred debt issuance costs are amortized to interest expense over the term or expected term of the related debt.

Intangible asset:

On December 4, 2013, in connection with the SBIC Acquisition, the Company recorded an intangible asset of $ 2,500 attributable to the SBIC license.

The Company amortizes the intangible asset on a straight-line basis over its estimated useful life.

During the first quarter of 2022, the Company changed its estimate of the useful life to terminate on March 1, 2024, due to early redemptions of SBA debentures.

The Company recognized amortization of $ 408 , $ 409 and $ 222 for the years ended December 31, 2023, 2022, and 2021, respectively.

The Company tests its intangible asset for impairment if events or circumstances suggest that the asset carrying value may not be fully recoverable.

The carrying value of the intangible asset, net of accumulated amortization, was $ 69 and $ 477 at December 31, 2023 and 2022, respectively, is included in prepaid expenses and other assets in the consolidated statements of assets and liabilities.

Deferred offering costs:

Offering costs include legal, accounting and other expenses pertaining to the registration of securities.

Offering costs are deferred and, as the registration statement capacity is utilized and securities are sold, a portion of the costs are charged as a reduction to capital when a common stock offering occurs, or allocated to deferred debt issuance costs when a debt offering occurs.

Deferred costs are periodically reviewed and charged to expenses if the related registration statement is withdrawn or if an offering is unsuccessful.

Interest expense:

Contractual interest expense on the Company’s borrowings is recognized on an accrual basis as incurred.

See Note 7 for further information.

Contractual interest expense on the Company’s borrowings is recognized as interest expense on the consolidated statements of operations.

Interest expense is recorded on an accrual basis as incurred.

Concentration of credit risk:

Aside from the Company’s investments, financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at financial institutions.

At various times during

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

the year, the Company exceeds the federally insured limits.

At various times during the year, the Company exceeds the federally insured limits.

The Company places cash deposits only with high credit quality institutions which OFS Advisor believes will mitigate the risk of loss due to credit risk.

If borrowers completely fail to perform according to the terms of the contracts, the amount of loss due to credit risk from the Company’s investments is equal to the Company’s recorded investment and the unfunded commitments disclosed in Note 6 .

If borrowers completely fail to perform according to the terms of the contracts, the amount of loss due to credit risk from the Company’s investments is equal to the sum of the Company’s recorded investment and the unfunded commitments disclosed in Note 6 .

New Accounting Pronouncements and Rule Issuances

In June 2022, the FASB issued Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”).

ASU 2022-03 clarifies guidance for fair value measurement of an equity security subject to a contractual sale restriction and establishes new disclosure requirements for such equity securities.

ASU 2022-03 is effective for fiscal years beginning after December 15, 2023 and for interim periods within those fiscal years, with early adoption permitted.

The Company has concluded that this guidance will not have a material impact on its consolidated financial statements.

In December 2023, the FASB issued Income Taxes (Topic 740), Improvements to Income Tax Disclosures (“ASU 2023-09”).

17 unchanged sentences

OFS Advisor most recently renewed the agreement to reduce its base management fee for the 2025 calendar year on January 8, 2025.

The incentive fee has two parts.

The first part of the incentive fee (“Income Incentive Fee”) is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter.

For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination and sourcing, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (as defined below) and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee).

Pre-incentive fee net investment income includes, in the case of investments with a deferred

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

interest or dividend feature (such as OID, debt instruments with PIK interest, equity investments with accruing or PIK dividend and zero coupon securities), accrued income that the Company has not yet received in cash.

The incentive fee has two parts.

Pre-incentive fee net investment income includes, in the case of investments with a deferred interest or dividend feature (such as OID, debt instruments with PIK interest, equity investments with accruing or PIK dividend and zero coupon securities), accrued income that the Company has not yet received in cash.

Pre-incentive fee net investment income is expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter and adjusted for any share issuances or repurchases during such quarter.

18 unchanged sentences

Under the Administration Agreement, OFS Services performs, or oversees the performance of, the Company’s required administrative services, which include being responsible for the financial records that the Company is required to maintain and preparing reports to its stockholders and all other reports and materials required to be filed with the SEC or any other regulatory authority.

In addition, OFS Services assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports to its stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others.

Under the Administration Agreement, OFS Services also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted the Company’s offer to provide such assistance.

Payment under the Administration Agreement is equal to an amount based upon the Company’s allocable portion of OFS Services’s overhead in performing its obligations under the Administration Agreement, including, but not limited to, rent, information technology services and the Company’s allocable portion of the cost of its officers, including its chief executive officer, chief financial officer, chief compliance officer, chief accounting officer, and their respective staffs.

To the extent that OFS Services

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to OFS Services.

the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others.

To the extent that OFS Services outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to OFS Services.

Equity Ownership:

3 unchanged sentences

Base management fees (1)

$ 5,993 $ 7,218 $ 7,979

Incentive fees:

4 unchanged sentences

Distributions paid to affiliates 4,112 4,049 3,503

(1) As of December 31, 2021, the Capital Gains Fee of $ 1,916 was accrued in accordance with GAAP, inclusive of net unrealized appreciation as of the determination date.

The Capital Gains Fee payable to the Advisor under the Investment Advisory Agreement does not include net unrealized appreciation, and accordingly no amount was payable or due to the Advisor as of December 31, 2021.

During the year ended December 31, 2022, the Company reversed the previously accrued Capital Gains Fees of $ 1,916 due to a reduction in net unrealized appreciation on the investment portfolio.

(1) For the years ended December 31, 2024, 2023 and 2022, the Company’s base management fee on OFSCC-FS Assets was reduced by $ 1,130 , $ 1,221 and $ 1,436 , respectively, pursuant to the fee reduction agreed to by OFS Advisor on such assets.

(2) During the year ended December 31, 2022, the Company reversed previously accrued Capital Gains Fees of $ 1,916 due to a reduction in net unrealized appreciation on the investment portfolio.

OFS Capital Corporation and Subsidiaries

9 unchanged sentences

Second lien debt investments 42,313 11.6 24.6 34,331 8.4 19.9

Subordinated debt investments 4,680 1.2 2.9 — — —

Preferred equity 10,190 2.8 5.9 12,248 3.0 7.1

Common equity, warrants and other (2)

12,365 3.4 7.2 96,337 23.5 56.0

Total debt and equity investments $ 274,564 75.5 % 159.5 % $ 332,790 81.2 % 193.3 %

2 unchanged sentences

(1) Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $ 128,147 and $ 119,169 , respectively.

(2) Includes the Company’s investment in Pfanstiehl Holdings, Inc.

See “Note 4—Portfolio Concentration” for additional information.

As of December 31, 2024, the Company had loans on non-accrual status with an aggregate amortized cost and fair value of $ 39,124 and $ 20,803 , respectively.

15 unchanged sentences

Percentage of Total Percentage of Total

Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Industry Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Administrative and Support and Waste Management and Remediation Services $ 22,016 6.1 % 12.8 % $ 21,555 5.2 % 12.5 %

All Other Business Support Services $ 2,729 0.7 % 1.7 % $ 2,528 0.6 % 1.6 %

Convention and Trade Show Organizers 160 — 0.1 77 — —

Landscaping Services 4,592 1.1 2.8 4,287 1.0 2.6

Security Systems Services (except Locksmiths) 5,863 1.5 3.6 5,877 1.4 3.6

Temporary Help Services 8,776 2.2 5.4 8,483 2.0 5.2

Electrical Contractors and Other Wiring Installation Contractors 17,602 4.4 10.9 10,096 2.4 6.2

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Percentage of Total Percentage of Total

Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

New Single-Family Housing Construction (except For-Sale Builders) $ 1,791 0.4 % 1.1 % $ 1,616 0.4 % 1.0 %

Construction 20,213 5.6 11.7 10,753 2.6 6.2

Education Services 18,466 5.0 10.7 18,475 4.5 10.7

Professional and Management Development Training 3,050 0.8 1.9 2,620 0.6 1.6

Sports and Recreation Instruction 4,473 1.1 2.8 4,502 1.1 2.8

Finance and Insurance 3,091 0.9 1.8 3,121 0.8 1.8

Commodity Contracts Dealing 3,097 0.8 1.9 3,097 0.7 1.9

Health Care and Social Assistance 74,008 20.4 43.0 67,144 16.4 39.1

All Other Outpatient Care Centers 2,167 0.5 1.3 2,167 0.5 1.3

Home Health Care Services 4,839 1.2 3.0 4,173 1.0 2.6

Medical Laboratories 9 — — — — —

Offices of Physicians, Mental Health Specialists 13,395 3.3 8.3 12,852 3.1 7.9

Other Ambulatory Health Care Services 17,060 4.2 10.5 15,900 3.8 9.8

Outpatient Mental Health and Substance Abuse Centers 8,863 2.2 5.5 8,950 2.1 5.5

Services for the Elderly and Persons with Disabilities 25,680 6.4 15.9 25,080 6.0 15.5

Cable and Other Subscription Programming 3,726 0.9 2.3 3,325 0.8 2.1

Data Processing, Hosting, and Related Services 4,050 1.0 2.5 2,337 0.6 1.4

Software Publishers 17,052 4.2 10.5 10,832 2.6 6.8

Television Broadcasting 1,935 0.5 1.2 92 — 0.1

Information 24,071 6.6 14.1 16,242 4.0 9.5

Management of Companies and Enterprises 12,614 3.5 7.3 12,309 3.0 7.1

Offices of Other Holding Companies 11,219 2.8 6.9 10,718 2.6 6.6

Manufacturing 34,899 9.6 20.4 122,234 29.8 71.1

Bare Printed Circuit Board Manufacturing 1,959 0.5 1.2 1,851 0.4 1.1

Current-Carrying Wiring Device Manufacturing 3,452 0.9 2.1 3,561 0.8 2.2

Fluid Power Pump and Motor Manufacturing 1,916 0.5 1.2 1,855 0.4 1.1

Ice Cream and Frozen Dessert Manufacturing 1,645 0.4 1.0 1,474 0.4 0.9

Motorcycle, Bicycle, and Parts Manufacturing 15,889 3.9 9.8 14,756 3.5 9.1

Other Aircraft Parts and Auxiliary Equipment Manufacturing 500 0.1 0.3 — — —

Other Industrial Machinery Manufacturing 3,824 0.9 2.4 3,500 0.8 2.2

Pharmaceutical Preparation Manufacturing 217 0.1 0.1 70,927 16.9 43.9

Other Services (except Public Administration)

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance 670 0.2 0.4 3,792 0.9 2.3

Professional, Scientific, and Technical Services

Advertising Agencies 2,238 0.6 1.4 2,249 0.5 1.4

OFS Capital Corporation and Subsidiaries

2 unchanged sentences

Percentage of Total Percentage of Total

Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Computer Systems Design Services $ 1,994 0.5 % 1.2 % $ 2,020 0.5 % 1.2 %

Other Computer Related Services 17,095 4.2 10.6 17,212 4.1 10.6

Industry Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Professional, Scientific, and Technical Services $ 18,982 5.2 % 11.0 % $ 19,134 4.7 % 11.1 %

Public Administration 703 0.2 0.4 61 — —

Other Justice, Public Order, and Safety Activities 703 0.2 0.4 45 — —

Real Estate and Rental and Leasing 13,218 3.6 7.6 13,932 3.4 8.1

Nonresidential Property Managers 4,660 1.2 2.9 1,278 0.3 0.8

Office Machinery and Equipment Rental and Leasing 7,412 1.8 4.6 10,583 2.5 6.5

Electronic Shopping and Mail-Order Houses 6,581 1.6 4.1 6,313 1.5 3.9

Supermarkets and Other Grocery (except Convenience) Stores 5,641 1.4 3.5 5,925 1.4 3.7

All Other General Merchandise Stores 499 0.1 0.3 551 0.1 0.3

Transportation and Warehousing

Transportation and Warehousing 2,495 0.7 1.5 2,257 0.5 1.6

Retail Trade 16,511 4.5 9.6 16,985 4.1 9.9

Wholesale Trade 15,773 4.3 9.1 10,845 2.7 6.2

Business to Business Electronic Markets 2,841 0.7 1.8 2,728 0.6 1.7

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers 10,116 2.5 6.2 8,429 2.0 5.2

Drugs and Druggists' Sundries Merchant Wholesalers 4,513 1.1 2.8 3,368 0.8 2.1

Industrial Machinery and Equipment Merchant Wholesalers 9,072 2.2 5.6 9,073 2.2 5.6

Motor Vehicle Parts (Used) Merchant Wholesalers 27,591 6.8 17.0 27,776 6.6 17.1

Other Miscellaneous Nondurable Goods Merchant Wholesalers 2,596 0.6 1.6 110 — 0.1

Sporting and Recreational Goods and Supplies Merchant Wholesalers 8,163 2.0 5.0 — — —

Total debt and equity investments $ 274,564 75.5 % 159.5 % $ 332,790 81.2 % 193.3 %

1 unchanged sentence

Total investments $ 363,547 100.0 % 211.2 % $ 409,665 100.0 % 237.9 %

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

As of December 31, 2023, the Company had loans to 44 portfolio companies, of which 81 % were first lien debt investments and 19 % were second lien debt investments, at fair value.

14 unchanged sentences

At December 31, 2023, the Company had loans on non-accrual status with an aggregate amortized cost and fair value of $ 34,568 and $ 12,140 , respectively.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

As of December 31, 2023, the industry compositions of the Company’s debt and equity investments were as follows:

Percentage of Total Percentage of Total

Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Industry Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Administrative and Support and Waste Management and Remediation Services $ 22,119 5.5 % 13.6 % $ 21,252 5.2 % 13.0 %

All Other Business Support Services $ 2,745 0.6 % 1.5 % $ 2,511 0.5 % 1.4 %

Convention and Trade Show Organizers 160 — 0.1 80 — —

Hazardous Waste Treatment and Disposal 1,765 0.4 1.0 1,652 0.3 0.9

Landscaping Services 4,611 1.0 2.6 4,226 0.8 2.3

Security Systems Services (except Locksmiths) 5,849 1.2 3.2 5,767 1.2 3.2

Temporary Help Services 8,854 1.9 4.9 8,821 1.8 4.9

Arts, Entertainment, and Recreation

Other Amusement and Recreation Industries 16,303 3.4 9.0 16,497 3.3 9.1

Electrical Contractors and Other Wiring Installation Contractors 17,666 3.7 9.8 9,247 1.8 5.1

New Single-Family Housing Construction (except For-Sale Builders) 1,807 0.4 1.0 1,566 0.3 0.9

Construction 19,393 4.8 12.0 11,712 2.8 7.2

Education Services 7,523 1.9 4.7 7,122 1.7 4.4

Professional and Management Development Training 1,595 0.3 0.9 953 0.2 0.5

Sports and Recreation Instruction 4,222 0.9 2.3 4,172 0.8 2.3

Finance and Insurance 3,097 0.8 1.9 3,097 0.7 1.9

Health Care and Social Assistance 72,013 17.8 44.5 69,122 16.5 42.6

Child Day Care Services 6,375 1.3 3.5 6,182 1.2 3.4

Home Health Care Services 4,210 0.9 2.3 3,987 0.8 2.2

Medical Laboratories 17 — — 35 — —

Offices of Physicians, Mental Health Specialists 13,299 2.8 7.4 13,119 2.6 7.3

Other Ambulatory Health Care Services 16,444 3.5 9.1 15,604 3.1 8.6

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Percentage of Total Percentage of Total

Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Outpatient Mental Health and Substance Abuse Centers $ 8,787 1.9 % 4.9 % $ 8,675 1.7 % 4.8 %

Services for the Elderly and Persons with Disabilities 18,977 4.0 10.5 18,427 3.7 10.2

Cable and Other Subscription Programming 3,763 0.8 2.1 3,103 0.6 1.7

Data Processing, Hosting, and Related Services 4,080 0.9 2.3 3,477 0.7 1.9

Directory and Mailing List Publishers 3,910 0.8 2.2 3,930 0.8 2.2

Internet Publishing and Broadcasting and Web Search Portals 3,100 0.7 1.7 2,843 0.6 1.6

Software Publishers 17,577 3.7 9.7 9,629 1.9 5.3

Television Broadcasting 2,182 0.5 1.2 488 0.1 0.3

Information 26,763 6.6 16.5 16,586 4.0 10.4

Management of Companies and Enterprises 11,219 2.8 6.9 10,718 2.6 6.6

Offices of Other Holding Companies 11,240 2.4 6.2 10,646 2.1 5.9

Manufacturing 29,402 7.3 18.1 97,924 23.2 60.5

Bare Printed Circuit Board Manufacturing 1,977 0.4 1.1 1,854 0.4 1.0

Current-Carrying Wiring Device Manufacturing 3,360 0.7 1.9 3,468 0.7 1.9

Fluid Power Pump and Motor Manufacturing 1,931 0.4 1.1 1,862 0.4 1.0

Ice Cream and Frozen Dessert Manufacturing 1,641 0.3 0.9 1,540 0.3 0.9

Motorcycle, Bicycle, and Parts Manufacturing 15,873 3.3 8.8 15,942 3.2 8.8

Other Aircraft Parts and Auxiliary Equipment Manufacturing 500 0.1 0.3 — — —

Other Industrial Machinery Manufacturing 5,203 1.1 2.9 4,660 0.9 2.6

Pharmaceutical Preparation Manufacturing 217 — 0.1 85,456 17.1 47.4

Other Services (except Public Administration) 670 0.2 0.4 3,792 0.9 2.3

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance 572 0.1 0.3 1,890 0.4 1.0

Communication Equipment Repair and Maintenance 1,766 0.4 1.0 1,572 0.3 0.9

Other Automotive Mechanical and Electrical Repair and Maintenance 1,083 0.2 0.6 1,064 0.2 0.6

Professional, Scientific, and Technical Services 21,327 5.3 13.2 21,481 5.1 13.2

Administrative Management and General Management Consulting Services 27,621 5.8 15.3 27,148 5.4 15.0

Advertising Agencies 2,256 0.5 1.3 1,898 0.4 1.1

Computer Systems Design Services 1,959 0.4 1.1 1,943 0.4 1.1

Other Computer Related Services 14,595 3.1 8.1 14,868 3.0 8.2

Public Administration 703 0.2 0.4 45 — —

Other Justice, Public Order, and Safety Activities 703 0.1 0.4 32 — —

Real Estate and Rental and Leasing 12,072 3.0 7.5 11,861 2.8 7.3

Nonresidential Property Managers 4,680 1.0 2.6 4,207 0.8 2.3

Office Machinery and Equipment Rental and Leasing 6,418 1.4 3.6 6,713 1.3 3.7

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Percentage of Total Percentage of Total

Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Electronic Shopping and Mail-Order Houses $ 6,747 1.4 % 3.7 % $ 6,515 1.3 % 3.6 %

Electronics and Appliance Stores 8,037 1.7 4.5 8,102 1.6 4.5

Shoe Store 10,160 2.1 5.6 1,104 0.2 0.6

Supermarkets and Other Grocery (except Convenience) Stores 5,647 1.2 3.1 5,532 1.1 3.1

All Other General Merchandise Stores 499 0.1 0.3 967 0.2 0.5

Transportation and Warehousing

Retail Trade 12,721 3.1 7.9 12,789 3.0 7.8

Transportation and Warehousing 2,495 0.7 1.5 2,257 0.5 1.6

Wholesale Trade 64,892 15.9 40.0 51,484 12.2 31.8

Business to Business Electronic Markets 2,858 0.6 1.6 2,689 0.5 1.5

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers 11,156 2.3 6.2 9,013 1.8 5.0

Drugs and Druggists' Sundries Merchant Wholesalers 5,227 1.1 2.9 4,622 0.9 2.6

Industrial Machinery and Equipment Merchant Wholesalers 9,071 1.9 5.0 9,073 1.8 5.0

Motor Vehicle Parts (Used) Merchant Wholesalers 27,751 5.8 15.4 27,821 5.6 15.4

Other Miscellaneous Nondurable Goods Merchant Wholesalers 2,680 0.6 1.5 2,246 0.4 1.2

Sporting and Recreational Goods and Supplies Merchant Wholesalers 8,163 1.7 4.4 122 — 0.1

Total debt and equity investments $ 306,409 75.9 % 189.1 % $ 341,242 81.2 % 210.6 %

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Portfolio Concentration:

As of December 31, 2023, the Company’s common equity investment in Pfanstiehl Holdings, Inc., a global manufacturer of high-purity pharmaceutical ingredients, accounted for 16.9 % and 43.8 % of its total portfolio at fair value and its total net assets, respectively.

As of December 31, 2022, the Company’s common equity investment in Pfanstiehl Holdings, Inc.

accounted for 17.1 % and 47.4 % of its total portfolio at fair value and its total net assets, respectively.

The following table presents the Company’s portfolio companies based on fair value that comprise greater than 10% of the Company’s total net assets as of December 31, 2024:

Percentage of Total

Portfolio Company Investment Type Industry Amortized Cost Fair Value Fair Value Net Assets

Pfanstiehl Holdings, Inc.

Common Equity Manufacturing $ 217 $ 89,298 21.8 % 51.8 %

Inergex Holdings, LLC First Lien Debt Professional, Scientific, and Technical Services 17,002 17,128 4.2 10.0

As of December 31, 2024, approximately 4.7 % and 11.2 % of the Company’s total portfolio at fair value and net assets, respectively, were comprised of Structured Finance Securities managed by a single adviser.

Fair Value of Financial Instruments

The Company’s investments are carried at fair value and determined in accordance with ASC 820 and a documented valuation policy that is applied in a consistent manner.

On September 7, 2022, pursuant to Rule 2a-5 of the 1940 Act (“Rule 2a-5”), the Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to the Company’s investments, commencing with the quarter ended September 30, 2022, and the Board maintains oversight of OFS Advisor in its capacity as valuation designee, as prescribed in Rule 2a-5.

Pursuant to Rule 2a-5 of the 1940 Act (“Rule 2a-5”), the Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to the Company’s investments, and the Board maintains oversight of OFS Advisor in its capacity as valuation designee, as prescribed in Rule 2a-5.

The Company engages third-party valuation firms to provide assistance to OFS Advisor in determining the fair value for a majority of its investments.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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The three levels of inputs in the fair value hierarchy are described below:

Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

OFS Capital Corporation and Subsidiaries

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(Dollar amounts in thousands, except per share data)

Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.

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The fair value of Structured Finance Securities are also estimated primarily by discounted cash flow techniques.

In valuing such investments, the Company considers CLO performance metrics, including prepayment rates, default rates, loss-on-default and recovery rates, and other metrics, as well as estimated market yields provided by a recognized industry pricing service as a primary source for discounted cash flow fair value estimates, supplemented by actual trades executed in the market at or around period-end, as well as the Indicative Prices provided by broker-dealers in its estimate of the fair value of such investments.

The Company also considers the operating metrics, typically included in the governing documents of CLO vehicles, including collateralization tests, concentration limits, defaults, restructuring activity and prepayment rates on the underlying loans, if applicable.

In valuing such investments, the Company considers CLO performance metrics, including prepayment rates, default rates, loss-on-default and recovery rates, and estimated market yields as a primary source for discounted cash flow fair value estimates, supplemented by actual trades executed in the market at or around period-end, as well as the Indicative Prices provided by broker-dealers in its estimate of the fair value of such investments.

The Company also considers operating metrics, typically included in the governing documents of CLO vehicles, including collateralization tests, concentration limits, defaults, restructuring activity and prepayment rates on the underlying loans, if applicable.

The fair value of the Company’s equity investments, as well as certain of its impaired debt investments, are generally estimated through analysis of the portfolio company's enterprise value under a market approach.

Enterprise value means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time.

The primary method for determining enterprise value under the market approach involves a multiple analysis, whereby appropriate multiples are applied to an earnings metric of the portfolio company, typically earnings before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) or revenue.

EBITDA and revenue multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any.

The primary method for determining enterprise value under the market approach involves an analysis, whereby appropriate multiples are applied to an earnings metric of the portfolio company, typically earnings before net

OFS Capital Corporation and Subsidiaries

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(Dollar amounts in thousands, except per share data)

interest expense, income tax expense, depreciation and amortization (“EBITDA”) or revenue.

EBITDA and revenue multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any.

The Company may also utilize other portfolio-company earnings metrics to determine enterprise value, such as forecast EBITDA or revenue, or a weighting of multiple factors.

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If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company might realize significantly less than the value at which such investment had previously been recorded and incur a realized capital loss.

The Company’s investments are subject to market risk as a result of economic and political developments, including impacts from elevated interest and inflation rates, the ongoing war between Russia and Ukraine, the escalated armed conflict in the Middle East, instability in the U.S.

and international banking systems, the risk of recession or a shutdown of U.S government services and related market volatility.

The Company’s investments are subject to market risk as a result of economic and political developments, including impacts from interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, instability in the U.S.

and international banking systems, the agenda of the new U.S.

presidential administration, including the potential impact of tariff enactment and tax reductions, the risk of recession or a shutdown of U.S.

government services, and related market volatility.

Market risk is directly impacted by the volatility and liquidity in the markets in which certain investments are traded and can affect the fair value of the Company’s investments.

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Changes in interest rates, including any potential interest rate reductions approved by the U.S.

Federal Reserve, may impact both our cost of funding and the valuation of our investment portfolio.

Federal Reserve, may impact both its cost of funding and the valuation of its investment portfolio.

The following tables present the Company’s investment portfolio measured at fair value on a recurring basis as of December 31, 2024 and 2023, respectively.

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The following tables provide the primary quantitative information about valuation techniques and the Company’s unobservable inputs to its Level 3 fair value measurements as of December 31, 2024 and 2023.

The Company may make changes to the valuation techniques, among techniques otherwise commonly used in accordance with its valuation policies, and/or the weighting of techniques used for particular investments based on changes in facts-and-circumstances and depending on the availability of, or changes in, information in order to produce the best estimate of fair value as of the measurement date.

The Company may make changes to the valuation techniques, among techniques otherwise commonly utilized in accordance with its valuation policies, and/or the weighting of techniques used for particular investments based on changes in facts-and-circumstances and depending on the availability of, or changes in, information in order to produce the best estimate of fair value as of the measurement date.

In addition to the techniques and unobservable inputs noted in the tables below and in accordance with OFS Advisor’s valuation policy, OFS Advisor, as valuation designee, may also use other valuation techniques and methodologies when determining the fair value measurements of the Company’s investment assets.

The tables are not intended to be all-inclusive and only present the most significant unobservable input(s) relevant to the valuation designee’s determination of fair value.

Fair Value at December 31, 2024 Valuation technique Unobservable inputs Range

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Second lien 27,400 Discounted cash flow Discount rates 10.84 % - 33.45 % ( 15.31 %)

4,913 Market approach EBITDA multiples 8.43 x - 8.43 x ( 8.43 x)

2,018 Market approach Revenue multiples 0.40 x - 0.40 x ( 0.40 x)

3,850 Market approach Transaction Price

Subordinated — Market approach NAV liquidation (2)

Structured Finance Securities:

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Recovery rate 65.00 % - 65.00 % ( 65.00 %)

2,993 Market approach Transaction Price

Mezzanine debt (1)

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Recovery rate 65.00 % - 65.00 % ( 65.00 %)

Subordinated notes 5,018 Market Approach Transaction Price

Mezzanine debt 2,817 Market Approach Transaction Price

Equity investments:

Preferred equity 12,248 Market approach EBITDA multiples 7.00 x - 8.50 x ( 8.46 x)

Preferred equity 77 Market approach Revenue multiples 0.13 x - 3.25 x ( 3.25 x)

Common equity, warrants and other (3)

70,927 Discounted cash flow Discount rates 11.50 % - 11.50 % ( 11.50 %)

Market approach EBITDA multiples 12.00 x - 13.25 x ( 12.63 x)

Common equity, warrants and other 96,337 Market approach EBITDA multiples 5.85 x - 15.75 x ( 13.66 x)

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and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.

(2) NAV liquidation represents the fair value, or estimated expected residual value, of the investment.

(3) Two valuation techniques were weighted to determinate the fair value.

OFS Capital Corporation and Subsidiaries

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First lien $ 161,211 Discounted cash flow Discount rates 9.55 % - 24.40 % ( 12.61 %)

8,136 Market approach EBITDA multiples 3.14 x - 6.00 x ( 3.59 x)

6,295 Market approach Revenue multiples 0.40 x - 0.40 x ( 0.40 x)

11,189 Market approach Transaction Price

Second lien 36,495 Discounted cash flow Discount rates 10.45 % - 21.68 % ( 13.29 %)

8,084 Market approach Revenue multiples 0.40 x - 1.20 x ( 0.67 x)

Subordinated 1,226 Market approach EBITDA multiples 10.50 x - 10.50 x ( 10.50 x)

3,850 Market approach Transaction Price

Subordinated — Market approach NAV liquidation (2)

Structured Finance Securities:

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Recovery rate 65.00 % - 65.00 % ( 65.00 %)

Mezzanine debt 26,413 Discounted cash flow Discount margin 7.25 % - 11.60 % ( 8.58 %)

Mezzanine debt (1)

26,245 Discounted cash flow Discount margin 7.15 % - 10.60 % ( 8.36 %)

Constant default rate 2.00 % - 3.00 % ( 2.04 %)

Recovery rate 65.00 % - 65.00 % ( 65.00 %)

Subordinated notes 118 Market approach NAV liquidation (2)

Loan accumulation facility 8,299 Market approach Probability weighted NAV analysis

Subordinated notes 5,018 Market Approach Transaction Price

Mezzanine debt 2,817 Market Approach Transaction Price

Equity investments:

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Preferred equity 77 Market approach Revenue multiples 0.13 x - 3.25 x ( 3.25 x)

Common equity, warrants and other (3)

70,927 Discounted cash flow Discount rates 11.50 % - 11.50 % ( 11.50 %)

Market approach EBITDA multiples 12.00 x - 13.25 x ( 12.63 x)

Common equity, warrants and other 5,369 Market approach EBITDA multiples 5.75 x - 16.50 x ( 9.57 x)

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(2) NAV liquidation represents the fair value, or estimated expected residual value, of the investment.

(3) Two valuation techniques were weighted to determinate the fair value.

Averages in the preceding two tables were weighted by the fair value of the related instruments.

Changes in market credit spreads or events impacting the credit quality of the underlying portfolio company (both of which could impact the discount rate), as well as changes in enterprise value and/or EBITDA multiples, among other things, could have a significant impact on fair values, with the fair value of a particular debt investment susceptible to change in inverse relation to the changes in the discount rate.

Changes in enterprise value and/or EBITDA multiples, as well as changes in the discount rate, could have a significant impact on fair values, with the fair value of an equity investment susceptible to change in tandem with the changes in enterprise value and/or EBITDA multiples, and in inverse relation to changes in the discount rate.

Due to wide range of approaches towards developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

Due to the wide

OFS Capital Corporation and Subsidiaries

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(Dollar amounts in thousands, except per share data)

range of approaches in developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

The following tables present changes in investments measured at fair value using Level 3 inputs for the years ended December 31, 2024 and 2023:

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Level 3 assets, December 31, 2023 $ 186,831 $ 48,429 $ — $ 13,240 $ 76,689 $ 79,045 $ 404,234

Net realized loss on investments ( 68 ) ( 185 ) ( 9,210 ) — ( 844 ) ( 1,257 ) ( 11,564 )

Net realized gain (loss) on investments ( 2,663 ) ( 2,136 ) ( 4,376 ) ( 2,911 ) 807 ( 3,518 ) ( 14,797 )

Net change in unrealized appreciation (depreciation) on investments ( 18 ) ( 498 ) 4,680 221 18,820 5,967 29,172

Amortization of net loan origination fees 1,095 427 — — — 233 1,755

Amortization of Net Loan Fees 937 413 — — — 243 1,593

Accretion of interest income on Structured Finance Securities — — — — — 8,731 8,731

Capitalized PIK interest and dividends 669 966 — 1,098 — — 2,733

Amendment fees ( 134 ) ( 116 ) — — — — ( 250 )

Amendment fees received ( 281 ) — — — — — ( 281 )

Purchase and origination of portfolio investments 49,662 8,291 — — — 27,369 85,322

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Distributions received from portfolio investments — — — — — ( 15,595 ) ( 15,595 )

Conversion from debt investments to equity investments ( 2,669 ) — — 1,269 1,400 — —

Transfers from Level 2 to Level 3 2,596 — — — — — 2,596

Transfers from Level 3 to Level 2 ( 8,591 ) — — — — — ( 8,591 )

Level 3 assets, December 31, 2024 $ 168,037 $ 34,331 $ — $ 12,248 $ 96,337 $ 76,875 $ 387,828

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Net change in unrealized appreciation (depreciation) on investments ( 4,378 ) ( 1,031 ) 7,984 3,608 ( 12,861 ) ( 4,117 ) ( 10,795 )

Amortization of net loan origination fees 1,112 220 6 — — 244 1,582

Amortization of Net Loan Fees 1,095 427 — — — 233 1,755

Accretion of interest income on Structured Finance Securities — — — — — 10,857 10,857

Capitalized PIK interest and dividends 806 655 — 1,136 — — 2,597

Amendment fees ( 185 ) ( 21 ) — — — — ( 206 )

Amendment fees received ( 134 ) ( 116 ) — — — — ( 250 )

Purchase and origination of portfolio investments 33,393 — — 345 356 7,642 41,736

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Structured Finance Securities 2,190 ( 5,553 )

Net unrealized depreciation on investments held $ ( 21,504 ) $ ( 10,417 )

Net unrealized appreciation (depreciation) on investments held $ 14,352 $ ( 21,504 )

Other Financial Assets and Liabilities

GAAP requires disclosure of the fair value of financial instruments not reported at fair value on a recurring basis for which it is practical to estimate such values.

The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such financial instruments.

The Company believes that the carrying amounts of its other financial instruments such as cash, cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such financial instruments.

The senior secured revolving credit facility between the Company and Banc of California (formally known as Pacific Western Bank), as lender (“Banc of California Credit Facility”) and the secured revolving credit facility that provides for borrowings in an aggregate principal amount up to $ 150,000 issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equity holder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator (“BNP Facility”) are variable rate instruments and fair value is approximately book value.

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49,698 — — 49,698

SBA-guaranteed debentures

— — 30,904 30,904

Total debt $ 49,698 $ — $ 189,676 $ 239,374

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SBA-guaranteed debentures — — 31,900 30,904

31,900 30,904 50,697 49,470

Total debt $ 246,662 $ 239,374 $ 299,733 $ 286,657

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Portfolio Company Investment Type Commitment

Associated Spring, LLC First Lien Debt (Delayed Draw) $ 1,724

Boca Home Care Holdings, Inc.

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Medrina LLC First Lien Debt (Delayed Draw) 447

Metasource, LLC First Lien Debt (Delayed Draw) 1,200

One GI LLC First Lien Debt (Revolver) 1,444

SSJA Bariatric Management LLC First Lien Debt (Revolver) 467

SS Acquisition, LLC First Lien Debt (Revolver) 1,786

Tolemar Acquisition, Inc.

First Lien Debt (Revolver) 515

Voya CLO 2024-7, Ltd.

Subordinated Notes 3,704

(1) Represents a primary market new issue trade that was recorded in January 2025 upon the closing and issuance of the security.

As of December 31, 2024, the Company had cash and cash equivalents of $ 6,068 and unused commitments of $ 24,000 under its Banc of California Credit Facility and $ 82,650 under its BNP Facility, each of which is subject to a borrowing base and other covenants, to fund these outstanding commitments to portfolio companies.

Legal and regulatory proceedings:

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The Company believes the risk of any material obligation under these indemnifications to be low.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

SBA Debentures:

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Treasury Notes.

Effective November 26, 2013, the Company received exemptive relief from the SEC to exclude SBA guaranteed debentures from the definition of senior securities in the statutory asset coverage ratio under the 1940 Act, allowing for greater capital deployment.

As of December 31, 2024 and 2023, SBIC I LP had outstanding SBA debentures of $ 0 and $ 31,920 , respectively.

Redemptions during the years ended December 31, 2024, 2023 and 2022

On March 1, 2024, SBIC I LP fully repaid its outstanding SBA debentures totaling $ 31,920 that were contractually due March 1, 2025, and, on April 17, 2024, surrendered its license to operate as a SBIC.

During the year ended December 31, 2023, SBIC I LP redeemed $ 19,000 of SBA debentures that were contractually due March 1, 2025.

The Company recognized a loss on extinguishment of debt of $ 213 related to the acceleration of unamortized deferred borrowing costs and prepaid (or breakage) interest on the redeemed debentures.

As of December 31, 2023 and 2022, SBIC I LP had outstanding SBA debentures of $ 31,920 and $ 50,920 , respectively.

See Note 12 for additional information concerning the Company’s outstanding SBA debentures.

On a stand-alone basis, SBIC I LP held $ 149,698 and $ 176,521 in assets at December 31, 2023 and 2022, respectively, which accounted for approximately 32 % and 34 % of the Company’s total consolidated assets, respectively.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The following table shows the Company’s outstanding SBA debentures payable as of December 31, 2023 and 2022:

Fixed Interest Rate SBA debentures outstanding

Pooling Date Maturity Date December 31, 2023 December 31, 2022

March 25, 2015 March 1, 2025 2.872 % $ 31,920 $ 50,920

SBA debentures outstanding 31,920 50,920

Unamortized debt issuance costs ( 20 ) ( 223 )

SBA debentures outstanding, net of unamortized deferred debt issuance costs $ 31,900 $ 50,697

During the year ended December 31, 2022, SBIC I LP redeemed $ 19,000 of SBA debentures that were contractually due March 1, 2025 and September 1, 2025.

The Company recognized a loss on extinguishment of debt of $ 144 related to the acceleration of unamortized deferred borrowing costs and prepaid (or breakage) interest on the redeemed debentures.

For the years ended December 31, 2024, 2023 and 2022, the components of interest expense, cash paid for interest, effective interest rates and average outstanding balances for the SBA debentures were as follows:

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Unsecured Notes:

The Outstanding Unsecured Notes totaled $ 180,000 and $ 180,000 in aggregate principal debt at December 31, 2023 and 2022, respectively.

The Unsecured Notes Due February 2026 and the Unsecured Notes Due October 2028 (together, the “Unsecured Notes”), totaled $ 180,000 and $ 180,000 in aggregate principal debt at December 31, 2024 and 2023, respectively.

During the years ended December 31, 2024, 2023 and 2022, the Company did not issue, redeem or repurchase any Unsecured Notes.

Issuances during the year ended December 31, 2021

On February 10, 2021, the Company closed the public offering of $ 100,000 aggregate principal amount of its 4.75 % notes due 2026, and on March 18, 2021, the Company closed an additional public offering of $ 25,000 aggregate principal amount of its 4.75 % notes due 2026 (the “Unsecured Notes Due February 2026”).

The total net proceeds to the Company from the Unsecured Notes Due February 2026, after deducting underwriting fees and offering expenses of $ 3,936 , was approximately $ 121,064 .

On October 28, 2021 and November 1, 2021, the Company closed the public offering of $ 55,000 aggregate principal amount of its 4.95 % notes due 2028 (the “Unsecured Notes Due October 2028”), which included a full exercise of the underwriters overallotment option.

The total net proceeds to the Company, after deducting underwriting discounts and offering expenses of $ 1,389 , was approximately $ 53,611 .

Redemptions during the year ended December 31, 2021

On March 12, 2021, the Company redeemed all of its $ 50,000 aggregate principal amount of 6.375 % notes due April 30, 2025 (the “Unsecured Notes Due April 2025”) and $ 48,525 aggregate principal amount of 6.50 % notes due October 30, 2025 (the “Unsecured Notes Due October 2025”).

On November 1, 2021, the Company redeemed all of its $ 25,000 aggregate principal amount of 6.25 % notes due September 30, 2023 (“Unsecured Notes Due September 2023”).

On November 22, 2021, the Company redeemed all of its $ 54,325 aggregate principal amount of 5.95 % notes due October 31, 2026 (the “Unsecured Notes Due October 2026”).

During the year ended December 31, 2021, the Company recognized a loss on extinguishment of $ 4,267 related to the acceleration of unamortized deferred borrowing costs on the redemption of unsecured notes.

The Unsecured Notes Due February 2026 and the Unsecured Notes Due October 2028 (together, the “Outstanding Unsecured Notes”), were outstanding at December 31, 2023 and are direct unsecured obligations and rank equal in right of payment with all current and future unsecured indebtedness of the Company.

Because the Outstanding Unsecured Notes are not secured by any of the Company’s assets, they are effectively subordinated to all existing and future secured unsubordinated indebtedness (or any indebtedness that is initially unsecured as to which the Company subsequently grant a security interest), to the extent of

As of December 31, 2024, the Unsecured Notes had the following terms and balances:

Unsecured Notes Principal Unamortized Discount and Issuance Costs Stated Interest Rate (1)

Effective Interest Rate (2)

Unsecured Notes Due February 2026 $ 125,000 $ 903 4.75 % 5.39 % February 10, 2026

Unsecured Notes Due October 2028 55,000 785 4.95 % 5.32 % October 31, 2028

Total $ 180,000 $ 1,688

(1) The weighted-average fixed cash interest rate on the Unsecured Notes as of December 31, 2024 was 4.81 %.

(2) The effective interest rate on the Unsecured Notes includes deferred debt issuance cost amortization.

(3) The Company may redeem the Unsecured Notes Due February 2026 in whole or in part at any time, or from time to time.

The Company is required to pay a “make-whole” premium if the redemption date is prior to November 10, 2025.

The Company may redeem the Unsecured Notes Due October 2028 in whole or in part at any time, or from time to time.

The Unsecured Notes are direct unsecured obligations and rank equal in right of payment with all current and future unsecured indebtedness of the Company.

Because the Unsecured Notes are not secured by any of the Company’s assets, they are effectively subordinated to all existing and future secured unsubordinated indebtedness (or any indebtedness that is initially unsecured as to which the Company subsequently grants a security interest), to the extent of the value of the assets securing such indebtedness, including, without limitation, borrowings under the Banc of California Credit Facility.

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

the value of the assets securing such indebtedness, including, without limitation, borrowings under the Banc of California Credit Facility and BNP Facility.

The indenture governing the Outstanding Unsecured Notes contains certain covenants:

The indenture governing the Unsecured Notes contains certain covenants, including:

(i) prohibiting additional borrowings, including through the issuance of additional debt securities, unless the Company's asset coverage, as defined in the 1940 Act, after giving effect to any exemptive relief granted to the Company by the SEC, equals at least 150 % after such borrowings;

and (ii) prohibiting (a) the declaration of any cash dividend or distribution upon any class of the Company’s capital stock (except to the extent necessary for the Company to maintain its treatment as a RIC under Subchapter M of the Code), or (b) the purchase of any capital stock if the Company’s asset coverage, as defined in the 1940 Act, were below 150 % at the time of such capital transaction and after deducting the amount of such transaction.

For the years ended December 31, 2023, 2022 and 2021, the components of interest expense, cash paid for interest, effective interest rates and average outstanding balances for the Outstanding Unsecured Notes were as follows:

and (ii) prohibiting (a) the declaration of any cash dividend or distribution upon any class of the Company’s capital stock (except to the extent necessary for the Company to maintain its treatment as a RIC under Subchapter M of the Code), or (b) the purchase of any capital stock unless the Company’s asset coverage, as defined in the 1940 Act, is at least 150 % at the time of such capital transaction and after deducting the amount of such transaction.

Year Ended December 31,

6 unchanged sentences

Average outstanding balance $ 180,000 $ 180,000 $ 180,000

As of December 31, 2023, the Outstanding Unsecured Notes had the following terms and balances:

Unsecured Notes Principal Unamortized Discount and Issuance Costs Stated Interest Rate (1)

Effective Interest Rate (2)

Unsecured Notes Due February 2026 $ 125,000 $ 1,678 4.75 % 5.39 % February 10, 2026

Unsecured Notes Due October 2028 55,000 989 4.95 % 5.32 % October 31, 2028

Total $ 180,000 $ 2,667

(1) The weighted-average fixed cash interest rate on the Unsecured Notes as of December 31, 2023 was 4.81 %.

(2) The effective interest rate on the Unsecured Notes includes deferred debt issuance cost amortization.

(3) The Company may redeem the Unsecured Notes Due February 2026 in whole or in part at any time, or from time to time, at its option at par plus a “make-whole” premium, if applicable.

The Company may redeem the Unsecured Notes Due October 2028 in whole or in part at any time, or from time to time.

Banc of California Credit Facility :

1 unchanged sentence

The Banc of California Credit Facility is available for general corporate purposes including investment funding and is scheduled to mature on February 28, 2026.

The maximum availability of the Banc of California Credit Facility is equal to 50 % of the aggregate outstanding principal amount of eligible loans included in the borrowing base, which excludes subordinated loan investments and as otherwise specified in the BLA.

The Banc of California Credit Facility is guaranteed by OFSCC-MB and secured by all of our and OFSCC-MB’s current and future assets, excluding assets held by OFSCC-FS and SBIC I, and our partnership interests in SBIC I.

The maximum availability of the Banc of California Credit Facility is equal to 50 % of the aggregate outstanding principal amount of eligible loans included in the borrowing base, which typically excludes Structured Finance Securities and as otherwise specified in the BLA.

The Banc of California Credit Facility is guaranteed by OFSCC-MB and secured by all of our and OFSCC-MB’s current and future assets, excluding assets held by OFSCC-FS and SBIC I LP, and the Company’s partnership interests in SBIC I LP.

The Banc of California Credit Facility bears interest at a variable rate of the Prime Rate plus a 0.25 % margin, with a 5.00 % floor, and includes an annual commitment fee of $ 125 .

2 unchanged sentences

Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2024 and 2023, were $ 121 and $ 122 , respectively.

As of December 31, 2023 and 2022, the Company had $ 0 and $ 0 outstanding debt under the Banc of California Credit Facility, respectively, and $ 25,000 and $ 25,000 of availability under the terms of the borrowing base, respectively.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

On February 17, 2021, the Company amended the Banc of California Credit Facility to among other things:

(i) increase the maximum amount available from $ 20,000 to $ 25,000 ;

(ii) decrease the interest rate floor from 5.25 % per annum to 5.00 % per annum;

(iii) modify certain financial performance covenants;

and (iv) extend the maturity date from February 28, 2021 to February 28, 2023.

On November 15, 2021, the Company amended the Banc of California Credit Facility to decrease the interest rate floor from 5.0 % to 4.0 %, effective as of November 1, 2021.

On April 22, 2022, the Company amended the Banc of California Credit Facility to:

(i) increase the maximum amount available under the Banc of California Credit Facility from $ 25,000 to $ 35,000 ;

and (ii) extend the maturity date of the Banc of California Credit Facility from February 28, 2023 to February 28, 2024.

On December 15, 2022, the Company amended the Banc of California Credit Facility to:

(i) reduce the maximum amount available under the Banc of California Credit Facility from $ 35,000 to $ 25,000 ;

and (ii) eliminate the No Net Losses covenant, which restricted net losses (defined as income after adjustments to the investment portfolio for gains and losses, realized and unrealized, also shown as net increase (decrease) in net assets resulting from operations) in more than two quarters during the prior four quarters then ended.

As of December 31, 2024 and 2023, the Company had $ 1,000 and $ 0 outstanding debt under the Banc of California Credit Facility, respectively, and $ 24,000 and $ 25,000 of unused commitments, respectively, subject to a borrowing base and other covenants.

Amendments during the years ended December 31, 2024, 2023 and 2022

On December 15, 2023, the Company amended the Banc of California Credit Facility to:

2 unchanged sentences

and (iii) eliminate the 0.50 % unused line fee and replace it with an annual commitment fee of 0.50 %.

On December 15, 2022, the Company amended the Banc of California Credit Facility to:

(i) reduce the maximum amount available under the Banc of California Credit Facility from $ 35,000 to $ 25,000 ;

On April 22, 2022, the Company amended the Banc of California Credit Facility to:

(i) increase the maximum amount available under the Banc of California Credit Facility from $ 25,000 to $ 35,000 ;

and (ii) extend the maturity date of the Banc of California Credit Facility from February 28, 2023 to February 28, 2024.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Fees and legal costs incurred in connection with the Banc of California Credit Facility are deferred and amortized over the life of the facility.

The BLA contains customary terms and conditions, including, without limitation, affirmative and negative covenants such as information reporting requirements, a minimum tangible net asset value, a minimum quarterly net investment income after incentive fees, and a ratio of total liabilities divided by NAV.

9 unchanged sentences

Effective interest rate (2)

8.51 % 6.93 % 4.01 %

Average outstanding balance $ 39 $ 1,249 $ 714

(1) Stated interest expense includes unused fees.

(2) Unused fees were excluded from the calculation.

(1) For the years ended December 31, 2023 and 2022, stated interest expense includes unused fees.

Effective December 15, 2023, the 0.50 % unused line fee was replaced with an annual commitment fee of 0.50 %, which is included in amortization of debt issuance costs for the year ended December 31, 2024.

(2) Not meaningful due to a minimal average outstanding balance relative to the size of the total commitment and the amount of unused or commitment fees incurred during the periods.

BNP Facility:

OFSCC-FS is party to the BNP Facility, which provides for borrowings in an aggregate principal amount up to $ 150,000 , of which $ 90,500 was drawn as of December 31, 2023.

Borrowings under the BNP Facility bear interest of SOFR plus an applicable spread, which is determined on the basis of industry-recognized portfolio company metrics at the time of funding.

OFSCC-FS is party to the BNP Facility, which provides for borrowings in an aggregate principal amount up to $ 150,000 .

Borrowings under the BNP Facility bear interest at a variable rate of SOFR plus a variable margin ( 2.65 % floor), which is determined on the basis of industry-recognized portfolio company metrics at the time of funding.

The BNP Facility will mature on the earlier of June 20, 2027 or upon certain other events defined in the credit agreement which result in accelerated maturity.

The reinvestment period of the BNP Facility ends on June 20, 2025, upon which the ability to access the unused commitment of the facility terminates.

As of December 31, 2024 and 2023, the Company had $ 67,350 and $ 90,500 , respectively, outstanding debt under the BNP Facility, and $ 82,650 and $ 59,500 , respectively, of availability, subject to the terms of the borrowing base.

OFSCC-FS also pays an unused fee up to 0.75 % depending on the size of the unused portion of the BNP Facility.

Borrowings under the BNP Facility are secured by substantially all of the assets held by OFSCC-FS, which were $ 151,039 and $ 158,308 , or 35 % and 34 % of the Company’s total consolidated assets at December 31, 2024 and 2023, respectively.

OFSCC-FS and the Company have each made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

At December 31, 2024, the stated interest rate on the BNP Facility was 7.16 %.

OFSCC-FS incurred fees to the lenders as well as legal costs to establish and amend the BNP Facility, which are deferred and amortized over the expected life of the facility.

Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2024 and 2023 were $ 560 and $ 941 , respectively.

Amendments during the years ended December 31, 2024, 2023 and 2022

On June 24, 2022, OFSCC-FS amended the BNP Facility to, among other things:

(i) extend the reinvestment period under the BNP Facility for three years from June 20, 2022 to June 20, 2025;

(ii) extend the maturity date under the BNP Facility from June 20, 2024 to June 20, 2027;

(iii) convert the benchmark interest rate from LIBOR to SOFR;

(iv) increase the applicable margin by 0.40 % on all classes of loans;

and (v) increase the applicable margin floor from 1.925 % to 2.65 %.

(ii) extend the maturity date under the BNP Facility from

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

As of December 31, 2023 and 2022, the Company had $ 90,500 and $ 104,700 outstanding debt under the BNP Facility, respectively, and $ 59,500 and $ 45,300 of availability under the terms of the borrowing base, respectively.

OFSCC-FS also pays an unused fee up to 0.75 % depending on the size of the unused portion of the BNP Facility.

At December 31, 2023, the cash interest rate on the BNP Facility was 8.04 %.

OFSCC-FS incurred fees to the lenders as well as legal costs to establish and amend the BNP Facility, which are amortized over the expected life of the facility.

Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2023 and 2022 were $ 941 and $ 1,315 , respectively.

June 20, 2024 to June 20, 2027;

(iii) convert the benchmark interest rate from LIBOR to SOFR;

(iv) increase the applicable margin by 0.40 % on all classes of loans;

and (v) increase the applicable margin floor from 1.925 % to 2.65 %.

10 unchanged sentences

The average dollar borrowings and average interest rate for all Company debt during the years ended December 31, 2024, 2023 and 2022, were as follows:

Year ended Average Dollar Borrowings Weighted-Average Interest Rate

Year ended Average Dollar Borrowings Weighted-Average Effective Interest Rate

December 31, 2024 $ 260,792 6.38 %

1 unchanged sentence

December 31, 2022 358,337 4.75

As of December 31, 2023, the Company’s debt liabilities are scheduled to mature as follows:

The following table shows the scheduled maturities of the principal balances of the Company’s outstanding borrowings as of December 31, 2024:

Principal Due by Year

3 unchanged sentences

BNP Facility 67,350 — — 67,350 — —

SBA Debentures (1)

31,920 — 31,920 — — —

Unsecured Notes 180,000 — 125,000 — 55,000 —

Total $ 248,350 $ — $ 126,000 $ 67,350 $ 55,000 $ —

(1) See Note 12 for additional information concerning the Company’s outstanding SBA debentures.

Federal Income Tax

6 unchanged sentences

Maintenance of the Company's RIC status also requires adherence to certain source of income and asset diversification requirements.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

OFSCC-MB, an entity taxed as a corporation under Subchapter C of the Code, is consolidated in the Company’s GAAP financial statements but is not included in the determination of ICTI or the RIC compliance requirements of the Company.

2 unchanged sentences

As of December 31, 2024, the Company met the source of income and asset diversification requirements, and intends to continue to meet these requirements.

For the year ended December 31, 2023, the Company had no net accrued excise tax expense related to estimated undistributed income;

however, as of December 31, 2023, the Company had an accrued liability for estimated excise taxes of $ 100 .

The Company’s ICTI differs from the net increase (decrease) in net assets resulting from operations primarily due to differences in income recognition on the unrealized appreciation/depreciation of investments, income recognition for CLO subordinated note investments, income from Company’s equity investments in pass-through entities, capital gains and losses and the net creation or utilization of capital loss carryforwards.

As of December 31, 2024, the Company has accrued refunds of $ 121 related to tax-year 2022 and 2023 excise tax overpayments.

The Company’s ICTI differs from the net increase

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

(decrease) in net assets resulting from operations primarily due to differences in income recognition on the unrealized appreciation/depreciation of investments, income recognition for CLO subordinated note investments, income from Company’s equity investments in pass-through entities, capital gains and losses and the net creation or utilization of capital loss carryforwards.

The distributions paid to stockholders are reported as ordinary income, long-term capital gains and returns of capital.

21 unchanged sentences

The Company records reclassifications to its capital accounts related to permanent differences between GAAP and tax treatment of excise taxes and other permanent differences.

The Company recorded reclassifications to decrease additional paid-in capital against total distributable earnings (accumulated loss) o f $ 0 , $ 101 and $ 2,142 for the years ended December 31, 2023, 2022 and 2021, respectively.

The Company recorded reclassifications to (increase) decrease additional paid-in capital against total distributable earnings (accumulated loss) o f $( 71 ), $ 0 and $ 101 for the years ended December 31, 2024, 2023 and 2022, respectively.

These reclassifications have no effect on total net assets or net asset value per common share.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The estimated tax-basis cost of investments and associated tax-basis gross unrealized appreciation (depreciation) inherent in the fair value of investments as of December 31, 2024 and 2023, were as follows:

7 unchanged sentences

Deferred tax assets and liabilities are measured using enacted corporate federal tax rates and estimated state tax burdens expected to apply to taxable income in the years in which those unrealized gains and losses are realized.

The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of the projected taxable income or other taxable events in OFSCC-MB.

The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

more likely than not that any portion of the deferred tax asset will not be realized on the basis of the projected taxable income or other taxable events in OFSCC-MB.

The tax-basis unrealized appreciation (depreciation) of investments by tax entity inherent in the fair value of investments as of December 31, 2024 and 2023, were as follows:

3 unchanged sentences

Gross unrealized depreciation on investments ( 9 ) ( 1,402 )

Total net unrealized depreciation on investments on investments held by OFSCC-MB ( 222 ) ( 634 )

Total net unrealized appreciation (depreciation) on investments on investments held by OFSCC-MB 2,032 ( 222 )

Total tax-basis net unrealized appreciation on investments $ 51,455 $ 21,231

3 unchanged sentences

Total deferred tax liabilities ( 582 ) ( 397 )

Deferred tax liabilities and assets with tax basis unrealized gain and losses differs from the amount that would have resulted from applying the federal rate of 21% to unrealized gains and losses because of state income taxes, net of associated federal benefit.

OFS Capital Corporation and Subsidiaries

49 unchanged sentences

(1) Calculated on the average share method.

(2) The issuance/repurchase of common stock on a per share basis reflects the net asset value change as a result of DRIP issuances or shares repurchased pursuant to the Stock Repurchase Program.

(3) Calculated as ending market value less beginning market value, adjusted for distributions reinvested at prices based on the Company’s dividend reinvestment plan for the respective distributions.

(4) Calculated as ending net asset value less beginning net asset value, adjusted for distributions reinvested at the Company’s dividend reinvestment plan for the respective distributions.

(2) The issuance/repurchase of common stock on a per share basis reflects the net asset value change as a result of DRIP share issuances, shares repurchased pursuant to the Stock Repurchase Program, the anti-dilutive (dilutive) impact from changes in weighted-average shares outstanding during the period, and the difference between the per share amount distributed to common stockholders of record and the per share amount distributed based on the weighted-average shares of common stock outstanding during the applicable period.

(3) Calculated as ending market value less beginning market value, adjusted for distributions reinvested at prices based on the Company’s DRIP for the respective distributions.

(4) Calculated as ending net asset value less beginning net asset value, adjusted for distributions reinvested at the Company’s DRIP for the respective distributions.

(5) Based on the average of the net asset value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

2 unchanged sentences

(8) Ratio of net investment income before incentive fee waiver to average net assets was 8.0 % for the year ended December 31, 2020.

(9) Portfolio turnover rate is calculated using the lesser of year-to-date sales, Structured Finance Security distributions and principal payments or year-to-date purchases over the average of the invested assets at fair value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

(9) Portfolio turnover rate is calculated using the lesser of year-to-date sales, Structured Finance Security distributions and principal payments or year-to-date purchases over the average of portfolio investments at fair value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

OFS Capital Corporation and Subsidiaries

7 unchanged sentences

federal income tax purposes as if they had received an actual distribution of the capital gains, net of taxes.

The Company may be limited in its ability to make distributions due to the BDC asset coverage requirements of the 1940 Act.

The Company may be limited in its ability to make distributions to stockholders due to the BDC asset coverage requirements of the 1940 Act.

In addition, distributions from OFSCC-FS to the Company are restricted by the terms and conditions of the BNP Facility.

At December 31, 2023 and December 31, 2022, OFSCC-FS had cash of $ 3,973 and $ 3,706 , respectively, of which $ 0 and $ 0 were available for distribution to the Company at December 31, 2023 and 2022, respectively.

At December 31, 2023, SBIC I LP was limited on its use of cash under restrictions imposed by SBA regulations.

At December 31, 2023, SBIC I LP had cash of $ 27,951 , of which $ 12,756 was available for distribution to the Company.

See Note 12 for additional information concerning the Company’s outstanding SBA debentures.

At December 31, 2024, OFSCC-FS had cash of $ 4,762 , of which $ 0 was available for distribution to the Company.

The following table summarizes distributions declared and paid for the years ended December 31, 2024, 2023 and 2022:

5 unchanged sentences

February 28, 2024 March 18, 2024 March 28, 2024 $ 0.34 $ 4,555 — $ — (1)

May 2, 2023 June 23, 2023 June 30, 2023 0.33 4,422 — — (1)

August 1, 2023 September 22, 2023 September 29, 2023 0.34 4,555 — — (1)

April 30, 2024 June 18, 2024 June 28, 2024 0.34 4,556 — — (1)

July 30, 2024 September 20, 2024 September 30, 2024 0.34 4,555 — — (1)

October 29, 2024 December 20, 2024 December 31, 2024 0.34 4,555 — — (1)

1 unchanged sentence

Year ended December 31, 2023

March 1, 2022 March 24, 2022 March 31, 2022 $ 0.28 $ 3,719 3,016 $ 39

February 28, 2023 March 24, 2023 March 31, 2023 $ 0.33 $ 4,421 — $ — (1)

May 2, 2023 June 23, 2023 June 30, 2023 0.33 4,422 — — (1)

August 1, 2023 September 22, 2023 September 29, 2023 0.34 4,555 — — (1)

November 1, 2022 December 23, 2022 December 30, 2022 0.30 3,967 5,026 51

October 31, 2023 December 22, 2023 December 29, 2023 0.34 4,556 — — (1)

$ 1.34 $ 17,954 — $ —

5 unchanged sentences

$ 1.16 $ 15,385 17,919 $ 179

(1) During the year ended December 31, 2023, the Company directed the DRIP plan administrator to purchase shares on the open market in order to satisfy the DRIP obligation to deliver shares of common stock.

(1) During the years ended December 31, 2024 and 2023, the Company directed the DRIP plan administrator to purchase shares on the open market in order to satisfy the DRIP obligation to deliver shares of common stock.

The following table represents DRIP participation for the years ended December 31, 2024, 2023 and 2022, respectively:

6 unchanged sentences

Distributions in excess of the Company’s current and accumulated ICTI would be treated first as a return of capital to the extent of a stockholder’s tax basis, and any remaining distributions would be treated as a capital gain.

The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and

The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and distributions paid for the full year.

Each year, if required, a statement on Form 1099-DIV identifying the source of the distribution is mailed to the Company’s stockholders.

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

distributions paid for the full year.

Each year, if required, a statement on Form 1099-DIV identifying the source of the distribution is mailed to the Company’s stockholders.

Stock repurchase program:

The Company is authorized to acquire up to $ 10,000 of its outstanding common stock through May 22, 2024 (the “Stock Repurchase Program”).

The Company has an open market stock repurchase program to acquire up to $ 10,000 of its outstanding common stock under Rule 10b-18 of the Exchange Act (the “Stock Repurchase Program”).

On April 30, 2024, the Board extended the Stock Repurchase Program for an additional two-year period ending May 22, 2026.

Under the Stock Repurchase Program, the Company may repurchase shares in open-market transactions, including through block purchases, depending on prevailing market conditions and other factors.

1 unchanged sentence

The Stock Repurchase Program may be extended, modified or discontinued at any time for any reason.

The following table summarizes the shares of common stock the Company repurchased under the Stock Repurchase Program (amount in thousands except shares):

The following table summarizes the shares of common stock the Company repurchased under the Stock Repurchase Program during the years ended December 31, 2024, 2023 and 2022 (amount in thousands except shares):

Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of the Program Maximum Dollar Value of Shares That May Yet be Purchased Under the Program Weighted Average Discount to NAV Prior to Repurchase

May 22, 2018 through December 31, 2018 300 $ 10.29 300 $ 9,997 21.5 %

January 1, 2022 through December 31, 2022 42,254 $ 8.30 42,254 $ 9,642 41.6 %

1 unchanged sentence

January 1, 2024 through December 31, 2024 — — — 9,642 —

January 1, 2022 through December 31, 2022 42,254 8.30 42,254 9,642 41.6

January 1, 2023 through December 31, 2023 — — — — —

Total 42,254 $ 8.30 42,254

5 unchanged sentences

Name of Portfolio Company Investment Type (1)

Net Realized Gain (Loss) Net unrealized appreciation/ (depreciation) on investments Interest Dividends Fees Total Income (2)

Net Realized Gain (Loss) Net Change in Unrealized Appreciation/ (Depreciation) Interest Dividends Fees Total Income (2)

December 31, 2023, Fair Value (5)

2 unchanged sentences

December 31, 2024, Fair Value (5)

Control Investment

Eblens Holdings, Inc.

Subordinated Debt (6)

$ ( 4,605 ) $ 3,501 $ — $ — $ — $ — $ 1,104 $ — $ ( 1,104 ) $ —

Subordinated Debt (6)

( 4,605 ) 4,605 — — — — — — — —

Common Equity (6)

( 1,306 ) 950 — — — — — 356 ( 356 ) —

( 10,516 ) 9,056 — — — — 1,104 356 ( 1,460 ) —

Total Control Investment ( 10,516 ) 9,056 — — — — 1,104 356 ( 1,460 ) —

Affiliate Investments

6 unchanged sentences

DRS Imaging Services, LLC Common Equity (6)

— 797 — — — — 393 797 — 1,190

Master Cutlery, LLC Subordinated Debt (6)

9 unchanged sentences

— 468 — — — — 1,136 468 — 1,604

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Year Ended December 31, 2023

Name of Portfolio Company Investment Type (1)

Net Realized Gain (Loss) Net unrealized appreciation/ (depreciation) on investments Interest Dividends Fees Total Income (2)

December 31, 2022, Fair Value (5)

Additions (3)

Reductions (4)

December 31, 2023, Fair Value (5)

TRS Services, Inc.

Preferred Equity 572 ( 2,410 ) — 1,891 — 1,891 2,507 — ( 2,507 ) —

$ — $ 520 $ — $ 191 $ — $ 191 $ 1,890 $ 662 $ ( 45 ) $ 2,507

Common Equity (6)

2 unchanged sentences

Total Affiliate Investments $ ( 6,506 ) $ 25,326 $ — $ 4,082 $ — $ 4,082 $ 86,831 $ 29,547 $ ( 11,955 ) $ 104,423

Total Control and Affiliate Investments $ ( 10,516 ) $ ( 1,905 ) $ — $ 1,766 $ — $ 1,766 $ 97,805 $ 6,596 $ ( 17,570 ) $ 86,831

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

(1) Principal balance of debt investments and ownership detail for equity investments are shown in the consolidated schedule of investments.

6 unchanged sentences

(6) Non-income producing.

(7) Dividends credited to income include (or portion thereof) dividends contractually earned but not declared.

(7) Dividends credited to income include dividends contractually earned but not declared (i.e., PIK dividends).

OFS Capital Corporation and Subsidiaries

3 unchanged sentences

Name of Portfolio Company Investment Type (1)

Net Realized Gain (Loss) Net unrealized appreciation/ (depreciation) on investments Interest Dividends Fees Total Income (2)

Net Realized Gain (Loss) Net Change in Unrealized Appreciation/ (Depreciation) Interest Dividends Fees Total Income (2)

December 31, 2022, Fair Value (5)

5 unchanged sentences

Subordinated Debt (6)

Subordinated Debt — — — — — — — — — —

Common Equity (6)

$ ( 4,605 ) $ 3,501 $ — $ — $ — $ — $ 1,104 $ — $ ( 1,104 ) $ —

— ( 3,963 ) — — — — — 5,067 ( 3,963 ) 1,104

MTE Holding Corp.

Subordinated Debt (6)

( 4,605 ) 4,605 — — — — — — — —

Common Equity (6)

( 1,306 ) 950 — — — — — 356 ( 356 ) —

( 10,516 ) 9,056 — — — — 1,104 356 ( 1,460 ) —

Total Control Investment ( 10,516 ) 9,056 — — — — 1,104 356 ( 1,460 ) —

7 unchanged sentences

DRS Imaging Services, LLC Common Equity — ( 1,175 ) — 35 — 35 1,568 — ( 1,175 ) 393

— 280 — — — — 1,289 279 — 1,568

Master Cutlery, LLC Subordinated Debt (6)

5 unchanged sentences

— ( 122 ) — — — — 122 — ( 122 ) —

Pfanstiehl Holdings, Inc.

Common Equity — ( 14,529 ) — 546 — 546 85,456 — ( 14,529 ) 70,927

OFS Capital Corporation and Subsidiaries

3 unchanged sentences

Name of Portfolio Company Investment Type (1)

Net Realized Gain (Loss) Net unrealized appreciation/ (depreciation) on investments Interest Dividends Fees Total Income (2)

Net Realized Gain (Loss) Net Change in Unrealized Appreciation/ (Depreciation) Interest Dividends Fees Total Income (2)

December 31, 2022, Fair Value (5)

2 unchanged sentences

December 31, 2023, Fair Value (5)

Pfanstiehl Holdings, Inc.

Common Equity — 19,716 — — — — 65,740 19,716 — 85,456

TalentSmart Holdings, LLC Common Equity (6)

12 unchanged sentences

(3) Gross additions include increases in cost basis resulting from a new portfolio investment, PIK interest, fees and dividends, accretion of OID, and net increases in unrealized net appreciation or decreases in net unrealized depreciation.

Gross additions also include transfers of portfolio companies, at fair value, out of the non-affiliate/non-control classification to the control classification during the period.

(4) Gross reductions include decreases in the cost basis of investments resulting from principal repayments and sales, and net decreases in net unrealized appreciation or net increases in net unrealized depreciation.

2 unchanged sentences

(6) Non-income producing.

(7) Dividends credited to income include (or portion thereof) dividends contractually earned but not declared.

(7) Dividends credited to income include (or portion thereof) dividends contractually earned but not declared (i.e, PIK dividends).

OFS Capital Corporation and Subsidiaries

3 unchanged sentences

On February 26, 2025, the Company’s Board declared a distribution of $ 0.34 per share for the first quarter of 2025, payable on March 31, 2025 to stockholders of record as of March 21, 2025.

On March 1, 2024, SBIC I LP fully repaid its outstanding SBA debentures totaling $ 31,920 that were contractually due March 1, 2025, and requested the approval of the SBA to surrender its license to operate as a SBIC.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

1 unchanged sentence

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-K

Item 8. Financial Statements and Supplementary Data