Oxford Square Capital Corp. 10-Q

ITEM 1. FINANCIAL STATEMENTS OXFORD SQUARE CAPITAL CORP. STATEMENTS OF ASSETS AND LIABILITIES March 31, 2025 December 31, 2024 (Unaudited) ASSETS Non-affiliated/non-control investments (cost: $ 342,775,122 and $ 358,356,496 , respectively) $ 239,291,367 $ 256,238,759 Affiliated investments (cost: $ 16,814,586 and $ 16,836,822 , respectively) 3,890,986 4,614,100 Cash and cash equivalents 37,252,672 34,926,468 Interest and distributions receivable 2,426,368 2,724,049 Securities sold not settled 1,589,875 — Other assets 1,039,370 1,227,598 Total assets $ 285,490,638 $ 299,730,974 LIABILITIES Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $ 252,321 and $ 309,812 , respectively $ 44,538,429 $ 44,480,938 Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $ 1,286,553 and $ 1,381,619 respectively 79,213,447 79,118,381 Securities purchased not settled 9,516,875 12,027,463 Base Fee and Net Investment Income Incentive Fee payable to affiliate 1,058,784 1,215,964 Accrued interest payable 1,204,487 1,204,487 Accrued expenses 1,076,306 1,018,261 Total liabilities 136,608,328 139,065,494 COMMITMENTS AND CONTINGENCIES (Note 13) NET ASSETS Common stock, $ 0.01 par value, 100,000,000 shares authorized; 71,187,166 and 69,758,938 shares issued and outstanding, respectively 711,872 697,590 Capital in excess of par value 491,617,243 487,943,476 Total distributable earnings/(accumulated losses) ( 343,446,805 ) ( 327,975,586 ) Total net assets 148,882,310 160,665,480 Total liabilities and net assets $ 285,490,638 $ 299,730,974 Net asset value per common share $ 2.09 $ 2.30 The accompanying notes are an integral part of these unaudited financial statements. 1 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS (Unaudited) March 31, 2025 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Senior Secured Notes Business Services Access CIG, LLC first lien senior secured notes, 8.54 % (SOFR + 4.25 %), ( 0.50 % floor) due August 18, 2028 (4)(5)(6)(14)(30) January 18, 2024 $ 10,097,016 $ 10,139,674 $ 10,097,016 Convergint Technologies, LLC second lien senior secured notes, 11.19 % (SOFR + 6.75 %), ( 0.75 % floor) due March 29, 2029 (4)(5)(14)(25) March 18, 2021 11,000,000 10,984,400 10,890,000 Nielsen Consumer, LLC first lien senior secured notes, 7.82 % (SOFR + 3.50 %), ( 0.50 % floor) due March 6, 2028 (4)(5)(14)(25) July 8, 2024 9,975,000 9,964,417 9,930,113 Verifone Systems, Inc. first lien senior secured notes, 9.94 % (SOFR + 5.50 %), ( 0.00 % floor) due August 20, 2028 (4)(5)(14)(30) March 28, 2025 13,229,081 11,960,672 11,885,932 Total Business Services $ 43,049,163 $ 42,803,061 28.7 % Food and Beverage Shearer’s Foods, LLC first lien senior secured notes, 7.57 % (SOFR + 3.25 %), ( 0.00 % floor) due January 31, 2031 (4)(5)(6)(14)(25) January 31, 2024 $ 9,925,125 $ 9,953,175 $ 9,844,533 Total Food and Beverage $ 9,953,175 $ 9,844,533 6.6 % Healthcare HealthChannels, Inc. (f/k/a ScribeAmerica, LLC) first lien senior secured notes, 8.82 % (SOFR + 4.50 %), ( 0.00 % floor) due April 3, 2025 (4)(5)(6)(25) January 15, 2021 $ 8,523,834 $ 8,523,351 $ 6,495,162 Performance Health Inc. first lien senior secured notes, 7.95 % (SOFR + 3.75 %), ( 0.00 % floor) due March 19, 2032 (4)(30) March 24, 2025 5,000,000 5,000,000 4,962,500 Viant Medical Holdings, Inc. first lien senior secured notes, 8.32 % (SOFR + 4.00 %), ( 0.00 % floor) due October 29, 2031 (4)(5)(6)(25) October 16, 2024 5,985,000 5,958,267 5,992,481 Total Healthcare $ 19,481,618 $ 17,450,143 11.7 % Industrials Highline Aftermarket, LLC first lien senior secured notes, 7.82 % (SOFR + 3.50 %), ( 0.75 % floor) due February 19, 2030 (4)(5)(25) February 13, 2025 $ 5,985,000 $ 5,992,769 $ 5,962,556 Michael Baker International, Inc. first lien senior secured notes, 8.32 % (SOFR + 4.00 %), ( 0.75 % floor) due December 1, 2028 (4)(5)(14)(25) May 22, 2024 9,925,000 9,976,989 9,891,950 (continued on next page) The accompanying notes are an integral part of these unaudited financial statements. 2 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS (Unaudited) — (continued) March 31, 2025 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Senior Secured Notes – (continued) Industrials – (continued) Pro Mach Inc. first lien senior secured notes, 7.07 % (SOFR + 2.75 %), ( 0.00 % floor) due August 31, 2028 (4)(5)(6)(25) October 10, 2024 $ 5,985,000 $ 6,019,726 $ 5,977,519 Total Industrials $ 21,989,484 $ 21,832,025 14.7 % Materials Veritiv Operating Corp. first lien senior secured notes, 8.30 % (SOFR + 4.00 %), ( 0.75 % floor) due November 30, 2030 (4)(5)(30) December 6, 2024 $ 5,984,962 $ 6,005,269 $ 5,947,556 Total Materials $ 6,005,269 $ 5,947,556 4.0 % Software Dodge Data & Analytics, LLC first lien first out senior secured notes, 10.72 % (SOFR + 6.25 %), ( 0.50 % floor) due January 31, 2029 (4)(5)(6)(14)(21)(30) November 14, 2024 $ 2,192,308 $ 2,162,211 $ 2,181,346 first lien second out senior secured notes, 9.22 % (SOFR + 4.75 %), ( 0.50 % floor) due February 28, 2029 (4)(5)(6)(14)(21)(30) November 14, 2024 3,040,197 2,472,440 2,515,763 second lien senior secured notes, 12.87 % (SOFR + 8.25 %) PIK, ( 0.50 % floor) due March 31, 2029 (3)(4)(5)(14)(21)(30) November 14, 2024 15,477,329 6,926,483 6,190,932 Help/Systems Holdings, Inc. first lien senior secured notes, 8.39 % (SOFR + 4.00 %), ( 0.75 % floor) due November 19, 2026 (4)(5)(6)(14)(30) October 6, 2022 4,389,625 4,255,458 4,016,507 second lien senior secured notes, 11.14 % (SOFR + 6.75 %), ( 0.75 % floor) due November 19, 2027 (4)(5)(14)(30) October 14, 2021 8,000,000 8,001,968 5,600,000 Kofax, Inc. first lien senior secured notes, 9.64 % (SOFR + 5.25 %), ( 0.50 % floor) due July 20, 2029 (4)(5)(6)(14)(30) February 1, 2023 9,831,868 9,281,431 8,486,180 McAfee Enterprise, LLC (f/k/a Magenta Buyer, LLC) first lien first out senior secured notes, 11.30 % (SOFR + 6.75 %), ( 0.75 % floor) due July 27, 2028 (4)(5)(29)(30) August 14, 2024 234,573 210,865 212,289 first lien second out senior secured notes, 11.55 % (SOFR + 7.00 %) ( 0.75 % floor) due July 27, 2028 (4)(5)(29)(30) August 14, 2024 1,307,852 949,623 676,813 first lien third out senior secured notes, 6.05 % (SOFR + 1.50 %) cash, 5.50 % PIK, ( 0.75 % floor) due July 27, 2028 (3)(4)(5)(29)(30) August 14, 2024 10,044,695 2,823,519 3,013,409 RSA Security, LLC second lien senior secured notes, 12.30 % (SOFR + 7.75 %), ( 0.75 % floor) due April 27, 2029 (4)(5)(30) April 16, 2021 15,000,000 14,838,731 5,531,250 (continued on next page) The accompanying notes are an integral part of these unaudited financial statements. 3 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS (Unaudited) — (continued) March 31, 2025 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Senior Secured Notes – (continued) Software – (continued) Smartronix, LLC first lien senior secured notes, 8.80 % (SOFR + 4.50 %), ( 0.75 % floor) due January 29, 2032 (4)(5)(30) February 6, 2025 $ 5,000,000 $ 5,012,054 $ 4,987,500 Total Software $ 56,934,783 $ 43,411,989 29.2 % Telecommunication Services ConvergeOne Holdings, Inc. first lien senior secured notes, 10.07 % (SOFR + 5.75 %), ( 0.00 % floor) due June 4, 2030 (4)(5)(16)(30) June 4, 2024 $ 934,808 $ 895,421 $ 602,951 Global Tel Link Corp. first lien senior secured notes, 11.82 % (SOFR + 7.50 %), ( 3.00 % floor) due August 6, 2029 (4)(5)(25) July 29, 2024 5,472,500 5,275,142 5,445,138 Total Telecommunication Services $ 6,170,563 $ 6,048,089 4.1 % Total Senior Secured Notes $ 163,584,055 $ 147,337,396 99.0 % Collateralized Loan Obligation – Equity Investments Structured Finance Allegro CLO XII, Ltd. CLO subordinated notes, estimated yield 19.71 % due July 21, 2037 (9)(11)(12)(18)(24) August 21, 2024 $ 3,000,000 $ 1,923,642 $ 1,710,000 Ares XLIV CLO Ltd. CLO subordinated notes, estimated yield 28.27 % due April 15, 2034 (9)(11)(12)(18)(24) December 15, 2023 5,000,000 1,390,271 1,049,695 Atlas Senior Loan Fund XI, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 26, 2031 (9)(11)(12)(18)(24)(28) April 5, 2019 5,725,000 1,662,955 458,000 Bain Capital Credit CLO 2017-2, Ltd. CLO subordinated notes, estimated yield 18.26 % due July 25, 2037 (9)(11)(12)(18)(24) January 17, 2024 3,086,500 1,818,775 1,543,250 BlueMountain CLO 2014-2 Ltd. CLO subordinated notes, estimated yield 0.00 % due October 20, 2030 (9)(11)(12)(18)(28) April 3, 2019 6,374,000 594,302 286,830 BlueMountain CLO XXXI Ltd. CLO subordinated notes, estimated yield 25.04 % due April 19, 2034 (9)(11)(12)(18)(24) April 16, 2024 12,075,000 6,985,876 4,520,880 Carlyle Global Market Strategies CLO 2013-2, Ltd. CLO subordinated notes, estimated yield 0.00 % due January 18, 2029 (9)(11)(12)(15)(18)(24)(28) March 19, 2013 6,250,000 544,329 6,875 Carlyle Global Market Strategies CLO 2021-6, Ltd. CLO subordinated notes, estimated yield 6.94 % due January 15, 2038 (9)(11)(12)(14)(18) June 30, 2021 29,600,000 19,105,487 15,688,000 Cedar Funding II CLO, Ltd. CLO subordinated notes, estimated yield 8.15 % due April 20, 2034 (9)(11)(12)(13)(18)(26) October 23, 2013 18,000,000 10,834,464 6,717,858 (continued on next page) The accompanying notes are an integral part of these unaudited financial statements. 4 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS (Unaudited) — (continued) March 31, 2025 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Collateralized Loan Obligation – Equity Investments – (continued) Structured Finance – (continued) Cedar Funding VI CLO, Ltd. CLO subordinated notes, estimated yield 13.48 % due April 20, 2034 (9)(11)(12)(18) May 15, 2017 $ 7,700,000 $ 5,700,820 $ 3,696,000 CIFC Funding 2014-3, Ltd. CLO subordinated notes, estimated yield 0.00 % due March 31, 2038 (9)(11)(12)(18)(24)(28) January 24, 2017 1,000,000 1,987,312 600,000 Dryden 43 Senior Loan Fund CLO subordinated notes, estimated yield 9.18 % due April 20, 2034 (9)(11)(12)(14)(18) June 1, 2021 47,263,000 24,564,356 14,178,900 Gulf Stream Meridian 4 Ltd. CLO subordinated notes, estimated yield 17.10 % due October 15, 2039 (9)(11)(12)(18)(24) November 15, 2023 6,625,000 3,507,916 3,025,950 Madison Park Funding XVIII, Ltd. CLO subordinated notes, estimated yield 20.64 % due October 21, 2030 (9)(11)(12)(18)(24) May 22, 2020 12,500,000 3,042,782 2,812,500 Madison Park Funding XIX, Ltd. CLO subordinated notes, estimated yield 16.06 % due January 22, 2037 (9)(11)(12)(18)(24) May 11, 2016 5,422,500 2,374,971 2,060,550 OCP CLO 2024-37, Ltd. CLO subordinated notes, estimated yield 17.69 % due October 15, 2037 (9)(11)(12)(14)(18)(24) September 27, 2024 27,035,000 23,784,769 21,628,000 Octagon Investment Partners 49, Ltd. CLO subordinated notes, estimated yield 13.43 % due April 15, 2037 (9)(11)(12)(13)(14)(18)(26) December 11, 2020 26,375,000 16,232,171 10,524,774 Sound Point CLO XVI, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 25, 2030 (9)(11)(12)(18)(28) August 1, 2018 45,500,000 19,023,511 455,000 Telos CLO 2013-3, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 17, 2026 (9)(11)(12)(18)(24)(28) January 25, 2013 14,447,790 6,207,075 1,445 Telos CLO 2014-5, Ltd. CLO subordinated notes, estimated yield 0.00 % due April 17, 2028 (9)(11)(12)(18)(28) April 11, 2014 28,500,000 18,179,226 2,850 Venture XVII, Ltd. CLO subordinated notes, estimated yield 0.00 % due April 15, 2027 (9)(11)(12)(18)(24)(28) January 27, 2017 6,200,000 2,321,562 620 Venture XX, Ltd. CLO subordinated notes, estimated yield 0.00 % due April 15, 2027 (9)(11)(12)(15)(18)(24)(28) July 27, 2018 3,000,000 332,779 — Venture 35 CLO, Limited CLO subordinated notes, estimated yield 0.00 % due October 22, 2031 (9)(11)(12)(18)(28) December 7, 2020 5,000,000 652,222 300,000 (continued on next page) The accompanying notes are an integral part of these unaudited financial statements. 5 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS (Unaudited) — (continued) March 31, 2025 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT/ SHARES COST FAIR VALUE (2) % OF NET ASSETS (10) Collateralized Loan Obligation – Equity Investments – (continued) Structured Finance – (continued) Zais CLO 6, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 15, 2029 (9)(11)(12)(13)(18)(26)(28) May 3, 2017 $ 10,500,000 $ 5,069,892 $ 63,456 Total Structured Finance $ 177,841,465 $ 91,331,433 61.3 % Total Collateralized Loan Obligation – Equity Investments $ 177,841,465 $ 91,331,433 61.3 % Common Stock IT Consulting UniTek Global Services, Inc. common equity (7)(27) January 13, 2015 1,244,188 $ 684,960 $ — Total IT Consulting $ 684,960 $ — 0.0 % Telecommunication Services ConvergeOne Holdings, Inc. common equity (7)(22) May 8, 2024 95,775 $ 1,349,602 $ 622,538 Total Telecommunication Services $ 1,349,602 $ 622,538 0.4 % Total Common Stock $ 2,034,562 $ 622,538 0.4 % Warrants Healthcare Careismatic Brands, Inc. (f/k/a New Trojan Parent, Inc.) common equity warrants (June 2029 expiry, $119.80 strike) (16) June 13, 2024 62,157 $ — $ — Total Healthcare $ — $ — 0.0 % Total Warrants $ — $ — 0.0 % Preferred Stock IT Consulting UniTek Global Services, Inc. Series B Preferred Stock (17)((27) June 26, 2019 21,427,212 $ 9,002,159 $ — Series B Senior Preferred Stock (17)((27) June 26, 2019 12,080,847 4,535,443 — Series B Super Senior Preferred Stock (3)(17)(23)(27) June 26, 2019 6,792,922 2,592,024 3,890,986 Total IT Consulting $ 16,129,626 $ 3,890,986 2.6 % Total Preferred Equity $ 16,129,626 $ 3,890,986 2.6 % Total Investments in Securities (8) $ 359,589,708 $ 243,182,353 163.3 % Cash Equivalents First American Government Obligations Fund – Class Z Shares, 4.23 % (14)(19) 36,977,602 $ 36,977,602 $ 36,977,602 Total Cash Equivalents $ 36,977,602 $ 36,977,602 24.8 % Total Investments in Securities and Cash Equivalents $ 396,567,310 $ 280,159,955 188.1 % ____________ (1) The Company generally acquires its investments in transactions not subject to registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to restrictions as “restricted securities” (within the meaning of the Securities Act). Unless otherwise noted, all securities were acquired in transactions not subject to registration under the Securities Act. (2) Fair value is determined in good faith by the Board of Directors of the Company. (3) As of March 31, 2025, the portfolio includes approximately $25.5 million of principal amount of debt investments and 6,792,922 shares of preferred stock investments which contain an active payment -in-kind (“PIK”) provision. (continued on next page) The accompanying notes are an integral part of these unaudited financial statements. 6 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS (Unaudited) — (continued) March 31, 2025 (4) Notes bear interest at variable rates and are subject to an interest rate floor where disclosed. The rate disclosed is as of March 31, 2025. (5) Cost value reflects accretion of original issue discount or market discount, or amortization of premium. (6) Cost value reflects repayment of principal. (7) Common stock and warrant investments were non -income producing as of March 31, 2025. (8) Aggregate gross unrealized appreciation for U.S. federal income tax purposes is $1,756,944; aggregate gross unrealized depreciation for U.S. federal income tax purposes is $138,088,576. Net unrealized depreciation is $136,331,632 based upon an estimated tax cost basis of $379,513,985 as of March 31, 2025. (9) Cost reflects accretion of effective yield less any cash distributions received or entitled to be received from collateralized loan obligation (“CLO”) equity investments. (10) Totals may not sum due to rounding. (11) Indicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). The Company may include CLO equity side letter related investments within CLO equity subordinated notes line items, and those side letter related investments may represent qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non -qualifying assets. As of March 31, 2025, the Company held qualifying assets that represented 67.1% of its total assets. (12) Investment not domiciled in the United States. (13) Fair value includes the Company’s interest in subordinated fee notes and represents discounted cash flows associated with fees earned from CLO equity investments. (14) Aggregate investments represent greater than 5% of net assets. (15) The CLO equity investment was optionally redeemed. Expected value of residual distributions, once received, is anticipated to be recognized as return of capital, pending any remaining amortized cost, and/or realized gain for any amounts received in excess of such amortized cost. (16) On June 13, 2024, Careismatic Brands, LLC completed a recapitalization, by which the Company exchanged $12,000,000 of principal in the second lien senior secured notes for 62,157 warrants to buy common stock, as well as a nominal amount of cash that the Company estimates will be approximately $68,000. This amount is included in “Other assets” on the Statements of Assets and Liabilities as of March 31, 2025. (17) As of March 31, 2025, this preferred equity investment was on non -accrual status and no dividend income has been recognized on this investment during the three months ended March 31, 2025. The aggregate fair value of these investments was approximately $3.9 million. (18) The CLO subordinated notes and income notes are considered equity positions in CLO vehicles. Equity investments are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based on the prior quarters ending investment cost (for previously existing portfolio investments) or the original cost for those investments made during the current quarter, as well as, a current projection of the future cash flows. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized. (19) Represents cash equivalents held in a money market fund as of March 31, 2025. (20) The fair value of the investment was determined using significant unobservable inputs. See “Note 4. Fair Value.” (21) On November 14, 2024, Dodge Data & Analytics, LLC completed a recapitalization, by which the Company was assigned principal in new first lien first out senior secured notes and new first lien second out senior secured notes for its interest in the first lien senior secured notes and was assigned a new tranche of second lien senior secured notes for its interest in the second lien senior secured notes. The Company exchanged $4,887,500 of principal in the former first lien senior secured notes for approximately $1,098,901 principal of the first lien first out senior secured notes and approximately $3,055,474 principal of the first lien second out senior secured notes. The Company exchanged $15,000,000 of principal in the former second lien senior secured notes for $15,000,000 of principal in the new second lien senior secured notes, which currently pays all of its interest as PIK, however, there is a cash option, subject to the net leverage ratio of the first lien senior secured notes. In addition, the Company also purchased an additional $1,098,901 of principal of the first lien first out senior secured notes as part of the restructuring. (continued on next page) The accompanying notes are an integral part of these unaudited financial statements. 7 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS (Unaudited) — (continued) March 31, 2025 (22) On June 4, 2024, ConvergeOne Holdings, Inc. completed a recapitalization, by which the Company exchanged approximately $5,239,634 of principal in the first lien senior secured notes for approximately $934,808 of principal in new first lien senior secured notes and rights to buy 48,048 shares of common stock (which the Company elected to purchase). The Company also exchanged $15,000,000 of principal in the second lien senior secured notes for 47,727 shares of common stock. (23) The Company holds preferred stock in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares. (24) The investment is co -invested with the Company’s affiliates. See “Note 7. Related Party Transactions.” (25) The principal balance outstanding for this debt investment, in whole or in part, is indexed to 30 -day SOFR. (26) Cost value reflects amortization. (27) These investments are deemed to be an “affiliate,” as defined in the 1940 Act. In general, under the 1940 Act, we would be presumed to “control” a portfolio company if we owned more than 25% of its voting securities and would be an “affiliate” of a portfolio company if we owned between 5% and 25% of its voting securities. We do not “control” any of our portfolio companies. Fair value as of March 31, 2025 and December 31, 2024 along with transactions during the three months ended March 31, 2025 in these affiliated investments are as follows: Name of Issuer Title of Issue Amount of Interest or Dividends Credited to Income (a) Fair Value as of December 31, 2024 Net Realized Gains Gross Additions (b) Gross Reductions (c) Net Change in Unrealized Depreciation Fair Value as of March 31, 2025 AFFILIATED INVESTMENT: Unitek Global Services, Inc. Common Stock $ — $ — $ — $ — $ — $ — $ — Series B Preferred Stock — — — — — — — Series B Senior Preferred Stock — — — — — — — Series B Super Senior Preferred Stock — 4,614,100 444,724 — ( 466,960 ) ( 700,878 ) 3,890,986 Total Affiliated Investment — 4,614,100 444,724 — ( 466,960 ) ( 700,878 ) 3,890,986 Total Control Investment — — — — — — — TOTAL CONTROL AND AFFILIATED INVESTMENTS $ — $ 4,614,100 $ 444,724 $ — $ ( 466,960 ) $ ( 700,878 ) $ 3,890,986 ____________ (a) Represents the total amount of interest or distributions credited to income for the portion of the period an investment was an affiliate investment. (b) Gross additions include increases in investments resulting from new portfolio investments, paid -in-kind interest or dividends, the amortization of discounts and fees. For the three months ended March 31, 2025, a total of approximately $323,000 of paid -in-kind dividends were entitled to be received yet deemed uncollectible (c) Gross reductions include decreases in investments resulting from principal collections related to investment repayments or sales, the amortization of premiums and acquisition costs. (28) As of March 31, 2025, the effective yield has been estimated to be 0%. The aggregate projected amount of future recurring distributions and terminal principal payment is less than the amortized investment cost. (29) On August 14, 2024, McAfee Enterprise, LLC (f/k/a Magenta Buyer, LLC) completed a recapitalization, by which the Company was assigned new tranches of a new first lien senior secured notes in exchange for its interests in the first and second lien senior secured notes. The Company exchanged $1,954,774 of principal in the former first lien senior secured notes for $234,573 of the first lien first out senior secured notes, $297,126 of the first lien second out senior secured notes, and $1,032,121 of the first lien third out senior secured notes. The Company exchanged $14,968,714 of principal in the former second lien senior secured notes for $972,966 of the first lien second out senior secured notes and $8,756,698 of the first lien third out senior secured notes. All tranches have characteristics of a traditional first lien senior secured loan, however, the first out, second out, and third out tranches are given priority with respect to payments of principal in that respective order. (30) The principal balance outstanding for this debt investment, in whole or in part, is indexed to 90 -day SOFR. The accompanying notes are an integral part of these unaudited financial statements. 8 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS December 31, 2024 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Senior Secured Notes Aerospace and Defense Kaman Corporation first lien senior secured notes, 7.99 % (SOFR + 3.50 %), ( 0.00 % floor) due April 21, 2031 (4)(5)(6)(30) October 28, 2024 $ 5,985,000 $ 6,022,406 $ 6,022,406 Total Aerospace and Defense $ 6,022,406 $ 6,022,406 3.7 % Business Services Access CIG, LLC first lien senior secured notes, 9.59 % (SOFR + 5.00 %), ( 0.50 % floor) due August 18, 2028 (4)(5)(6)(14)(30) January 18, 2024 $ 10,122,643 $ 10,166,166 $ 10,223,869 Convergint Technologies, LLC second lien senior secured notes, 11.22 % (SOFR + 6.75 %), ( 0.75 % floor) due March 29, 2029 (4)(5)(14)(25) March 18, 2021 11,000,000 10,977,867 10,917,500 Nielsen Consumer, LLC first lien senior secured notes, 9.11 % (SOFR + 4.75 %), ( 0.50 % floor) due March 6, 2028 (4)(5)(14)(25) July 8, 2024 9,975,000 9,962,438 10,049,813 Premiere Global Services, Inc. replacement revolver, 13.00 % (Prime Rate + 5.50 %), ( 1.00 % floor) due April 7, 2023 (4)(5)(17)(28)(29) October 1, 2019 2,452,012 2,378,999 487,212 Verifone Systems, Inc. first lien senior secured notes, 8.78 % (SOFR + 4.00 %), ( 0.00 % floor) due August 20, 2025 (4)(5)(6)(14)(30) August 9, 2018 14,760,146 14,593,903 13,837,637 Total Business Services $ 48,079,373 $ 45,516,031 28.3 % Food and Beverage Shearer’s Foods, LLC first lien senior secured notes, 7.61 % (SOFR + 3.25 %), ( 0.00 % floor) due January 31, 2031 (4)(5)(6)(14)(25) January 31, 2024 $ 9,950,063 $ 9,977,025 $ 9,950,063 Total Food and Beverage $ 9,977,025 $ 9,950,063 6.2 % Healthcare HealthChannels, Inc. (f/k/a ScribeAmerica, LLC) first lien senior secured notes, 9.67 % (SOFR + 4.50 %), ( 0.00 % floor) due April 3, 2025 (4)(5)(6)(14)(34) October 31, 2018 $ 18,553,349 $ 18,519,053 $ 12,801,811 Viant Medical Holdings, Inc. first lien senior secured notes, 8.60 % (SOFR + 4.00 %), ( 0.00 % floor) due October 16, 2031 (4)(5)(6)(25) October 16, 2024 6,000,000 5,970,224 6,060,000 Total Healthcare $ 24,489,277 $ 18,861,811 11.7 % (continued on next page) The accompanying notes are an integral part of these financial statements. 9 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS — (continued) December 31, 2024 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Senior Secured Notes – (continued) Industrials Michael Baker International, Inc. first lien senior secured notes, 9.11 % (SOFR + 4.75 %), ( 0.75 % floor) due December 1, 2028 (4)(5)(14)(25) May 22, 2024 $ 9,950,000 $ 10,005,481 $ 9,981,144 Pro Mach Inc. first lien senior secured notes, 7.86 % (SOFR + 3.50 %), ( 0.00 % floor) due August 31, 2028 (4)(5)(6)(25) October 10, 2024 $ 5,985,000 $ 6,021,890 $ 6,029,888 Total Industrials $ 16,027,371 $ 16,011,032 10.0 % Materials Veritiv Operating Corp. first lien senior secured notes, 8.83 % (SOFR + 4.50 %), ( 0.75 % floor) due November 30, 2030 (4)(5)(25) December 6, 2024 $ 5,984,962 $ 6,004,912 $ 6,007,406 Total Materials $ 6,004,912 $ 6,007,406 3.7 % Software Alvaria, Inc. (f/k/a Aspect Software, Inc.) first lien second out senior secured notes, 5.46 % (SOFR + 1.00 %) cash, 6.50 % PIK, ( 0.75 % floor) due May 5, 2028 (3)(4)(5)(15)(25) March 20, 2024 $ 2,216,883 $ 1,738,104 $ 877,509 first lien third out tranche A senior secured notes, 6.46 % (SOFR + 2.00 %) cash, 5.50 % PIK, ( 0.75 % floor) due May 5, 2028 (3)(4)(5)(15)(25) March 20, 2024 5,132,151 2,744,262 102,643 first lien third out tranche B senior secured notes, 11.46 % (SOFR + 7.00 %), ( 0.75 % floor) due May 5, 2028 (4)(5)(15)(25) March 20, 2024 2,800,000 1,671,201 102,676 first lien fourth out senior secured notes, 11.46 % (SOFR + 7.00 %), ( 0.75 % floor) due May 5, 2028 (4)(5)(15)(25) March 20, 2024 2,800,000 807,517 65,324 Dodge Data & Analytics, LLC first lien first out senior secured notes, 10.92 % (SOFR + 6.25 %), ( 0.50 % floor) due January 31, 2029 (4)(5)(6)(14)(30)(35) November 14, 2024 2,197,802 2,165,395 2,166,659 first lien second out senior secured notes, 9.42 % (SOFR + 4.75 %), ( 0.50 % floor) due February 28, 2029 (4)(5)(6)(14)(30)(35) November 14, 2024 3,047,835 2,451,974 2,423,029 second lien senior secured notes, 12.92 % (SOFR + 8.25 %) PIK, ( 0.50 % floor) due March 31, 2029 (3)(4)(5)(14)(30)(35) November 14, 2024 15,000,000 6,248,129 6,000,000 Help/Systems Holdings, Inc. first lien senior secured notes, 8.69 % (SOFR + 4.00 %), ( 0.75 % floor) due November 19, 2026 (4)(5)(6)(14)(25) October 6, 2022 4,401,177 4,246,722 3,866,170 second lien senior secured notes, 11.44 % (SOFR + 6.75 %), ( 0.75 % floor) due November 19, 2027 (4)(5)(14)(25) October 14, 2021 8,000,000 8,002,291 5,010,000 Kofax, Inc. first lien senior secured notes, 9.94 % (SOFR + 5.25 %), ( 0.50 % floor) due July 20, 2029 (4)(5)(6)(14)(30) February 1, 2023 9,857,013 9,277,564 8,822,027 (continued on next page) The accompanying notes are an integral part of these financial statements. 10 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS — (continued) December 31, 2024 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Senior Secured Notes – (continued) Software – (continued) McAfee Enterprise, LLC (f/k/a Magenta Buyer, LLC) first lien first out senior secured notes, 11.60 % (SOFR + 6.75 %), ( 0.75 % floor) due July 27, 2028 (4)(5)(30)(33) August 14, 2024 $ 234,573 $ 209,468 $ 215,807 first lien second out senior secured notes, 6.35 % (SOFR + 1.50 %) cash, 6.25 % PIK, ( 0.75 % floor) due July 27, 2028 (3)(4)(5)(30)(33) August 14, 2024 1,287,291 911,791 772,375 first lien third out senior secured notes, 6.35 % (SOFR + 1.50 %) cash, 5.50 % PIK, ( 0.75 % floor) due July 27, 2028 (3)(4)(5)(30)(33) August 14, 2024 9,905,469 2,457,042 3,328,931 Quest Software, Inc. first lien senior secured notes, 8.99 % (SOFR + 4.25 %), ( 0.50 % floor) due February 1, 2029 (4)(5)(6)(30) January 20, 2022 2,932,500 2,913,022 1,461,675 RSA Security, LLC second lien senior secured notes, 12.60 % (SOFR + 7.75 %), ( 0.75 % floor) due April 27, 2029 (4)(5)(30) April 16, 2021 15,000,000 14,827,269 6,815,700 Total Software $ 60,671,751 $ 42,030,525 26.2 % Telecommunication Services ConvergeOne Holdings, Inc. first lien senior secured notes, 10.21 % (SOFR + 5.75 %), ( 0.00 % floor) due June 4, 2030 (4)(5)(30)(36) June 4, 2024 $ 934,808 $ 893,846 $ 890,405 Global Tel Link Corp. first lien senior secured notes, 11.86 % (SOFR + 7.50 %), ( 3.00 % floor) due August 6, 2029 (4)(5)(25) July 29, 2024 5,486,250 5,277,605 5,397,098 Total Telecommunication Services $ 6,171,451 $ 6,287,503 3.9 % Total Senior Secured Notes $ 177,443,566 $ 150,686,777 93.8 % Collateralized Loan Obligation – Equity Investments Structured Finance Allegro CLO XII, Ltd. CLO subordinated notes, estimated yield 20.60 % due July 21, 2037 (9)(11)(12)(18)(24) August 21, 2024 $ 3,000,000 $ 2,068,726 $ 1,980,000 Ares XLIV CLO Ltd. CLO subordinated notes, estimated yield 30.98 % due April 15, 2034 (9)(11)(12)(18)(24) December 15, 2023 5,000,000 1,393,688 1,248,846 Atlas Senior Loan Fund XI, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 26, 2031 (9)(11)(12)(18)(24)(32) April 5, 2019 5,725,000 1,831,139 572,500 Bain Capital Credit CLO 2017-2, Ltd. CLO subordinated notes, estimated yield 18.92 % due July 25, 2037 (9)(11)(12)(18)(24) January 17, 2024 3,086,500 1,829,725 1,728,440 BlueMountain CLO 2014-2 Ltd. CLO subordinated notes, estimated yield 5.28 % due October 20, 2030 (9)(11)(12)(18) April 3, 2019 6,374,000 712,462 382,440 (continued on next page) The accompanying notes are an integral part of these financial statements. 11 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS — (continued) December 31, 2024 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT COST FAIR VALUE (2) % OF NET ASSETS (10) Collateralized Loan Obligation – Equity Investments – (continued) Structured Finance – (continued) BlueMountain CLO XXXI Ltd. CLO subordinated notes, estimated yield 27.66 % due April 19, 2034 (9)(11)(12)(18)(24) April 16, 2024 $ 12,075,000 $ 7,010,381 $ 6,762,000 Carlyle Global Market Strategies CLO 2013-2, Ltd. CLO subordinated notes, estimated yield 0.00 % due January 18, 2029 (9)(11)(12)(18)(24)(31)(32) March 19, 2013 6,250,000 544,329 4,375 Carlyle Global Market Strategies CLO 2021-6, Ltd. CLO subordinated notes, estimated yield 8.48 % due July 15, 2034 (9)(11)(12)(14)(18) June 30, 2021 29,600,000 18,983,888 16,872,000 Cedar Funding II CLO, Ltd. CLO subordinated notes, estimated yield 7.76 % due April 20, 2034 (9)(11)(12)(13)(18)(26) October 23, 2013 18,000,000 11,226,977 7,866,661 Cedar Funding VI CLO, Ltd. CLO subordinated notes, estimated yield 11.13 % due April 20, 2034 (9)(11)(12)(18) May 15, 2017 7,700,000 5,819,708 4,235,000 CIFC Funding 2014-3, Ltd. CLO subordinated notes, estimated yield 0.00 % due October 22, 2031 (9)(11)(12)(18)(24)(32) January 24, 2017 10,000,000 2,263,471 1,100,000 Dryden 43 Senior Loan Fund CLO subordinated notes, estimated yield 7.46 % due April 20, 2034 (9)(11)(12)(14)(18) June 1, 2021 47,263,000 24,882,808 17,014,680 Gulf Stream Meridian 4 Ltd. CLO subordinated notes, estimated yield 18.22 % due October 15, 2039 (9)(11)(12)(18)(24) November 15, 2023 6,625,000 3,625,152 3,490,946 Madison Park Funding XVIII, Ltd. CLO subordinated notes, estimated yield 18.24 % due October 21, 2030 (9)(11)(12)(18)(24) May 22, 2020 12,500,000 3,238,494 3,250,000 Madison Park Funding XIX, Ltd. CLO subordinated notes, estimated yield 12.94 % due January 22, 2037 (9)(11)(12)(18)(24) May 11, 2016 5,422,500 2,516,567 2,385,900 OCP CLO 2024-37, Ltd. CLO subordinated notes, estimated yield 17.80 % due October 15, 2037 (9)(11)(12)(14)(18)(24) September 27, 2024 27,035,000 22,793,496 22,676,958 Octagon Investment Partners 49, Ltd. CLO subordinated notes, estimated yield 13.44 % due April 15, 2037 (9)(11)(12)(13)(14)(18)(26) December 11, 2020 26,375,000 16,363,222 11,692,074 Sound Point CLO XVI, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 25, 2030 (9)(11)(12)(18)(32) August 1, 2018 45,500,000 19,516,297 910,000 Telos CLO 2013-3, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 17, 2026 (9)(11)(12)(18)(24)(32) January 25, 2013 14,447,790 6,207,075 1,445 (continued on next page) The accompanying notes are an integral part of these financial statements. 12 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS — (continued) December 31, 2024 COMPANY/INVESTMENT (1)(20) ACQUISITION DATE PRINCIPAL AMOUNT/ SHARES COST FAIR VALUE (2) % OF NET ASSETS (10) Collateralized Loan Obligation – Equity Investments – (continued) Structured Finance – (continued) Telos CLO 2014-5, Ltd. CLO subordinated notes, estimated yield 0.00 % due April 17, 2028 (9)(11)(12)(18)(32) April 11, 2014 $ 28,500,000 $ 18,179,226 $ 2,850 Venture XVII, Ltd. CLO subordinated notes, estimated yield 0.00 % due April 15, 2027 (9)(11)(12)(18)(24)(32) January 27, 2017 6,200,000 2,321,562 620 Venture XX, Ltd. CLO subordinated notes, estimated yield 0.00 % due April 15, 2027 (9)(11)(12)(18)(24)(31)(32) July 27, 2018 3,000,000 332,779 — Venture 35 CLO, Limited CLO subordinated notes, estimated yield 0.00 % due October 22, 2031 (9)(11)(12)(18)(32) December 7, 2020 5,000,000 831,996 350,000 Zais CLO 6, Ltd. CLO subordinated notes, estimated yield 0.00 % due July 15, 2029 (9)(11)(12)(13)(18)(26)(32) May 3, 2017 10,500,000 5,070,160 66,497 Total Structured Finance $ 179,563,328 $ 104,594,232 65.1 % Total Collateralized Loan Obligation – Equity Investments $ 179,563,328 $ 104,594,232 65.1 % Common Stock IT Consulting UniTek Global Services, Inc. common equity (7)(27) January 13, 2015 1,244,188 $ 684,960 $ — Total IT Consulting $ 684,960 $ — 0.0 % Telecommunication Services ConvergeOne Holdings, Inc. common equity (7)(36) May 8, 2024 95,775 $ 1,349,602 $ 957,750 Total Telecommunication Services $ 1,349,602 $ 957,750 0.6 % Total Common Stock $ 2,034,562 $ 957,750 0.6 % Warrants Healthcare Careismatic Brands, LLC common equity warrants (June 2029 expiry, $119.80 strike) (7)(16) June 13, 2024 62,157 $ — $ — Total Healthcare $ — $ — 0.0 % Total Warrants $ — $ — 0.0 % Preferred Stock IT Consulting UniTek Global Services, Inc. Series B Preferred Stock (3)(17)(21)(27) June 26, 2019 21,427,212 $ 9,002,159 $ — Series B Senior Preferred Stock (3)(17)(22)(27) June 26, 2019 12,080,847 4,535,443 — Series B Super Senior Preferred Stock (3)(17)(23)(27) June 26, 2019 6,936,410 2,614,260 4,614,100 Total IT Consulting $ 16,151,862 $ 4,614,100 2.9 % Total Preferred Equity $ 16,151,862 $ 4,614,100 2.9 % Total Investments in Securities (8) $ 375,193,318 $ 260,852,859 162.4 % (continued on next page) The accompanying notes are an integral part of these financial statements. 13 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS — (continued) December 31, 2024 COMPANY/INVESTMENT (1)(20) SHARES COST FAIR VALUE (2) % OF NET ASSETS (10) Cash Equivalents First American Government Obligations Fund – Class Z Shares, 4.35% (19) 34,433,088 $ 34,433,088 $ 34,433,088 Total Cash Equivalents $ 34,433,088 $ 34,433,088 21.4 % Total Investments in Securities and Cash Equivalents $ 409,626,406 $ 295,285,947 183.8 % ____________ (1) The Company generally acquires its investments in transactions not subject to registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to restrictions as “restricted securities” (within the meaning of the Securities Act). Unless otherwise noted, all securities were acquired in transactions not subject to registration under the Securities Act. (2) Fair value is determined in good faith by the Board of Directors of the Company. (3) As of December 31, 2024, the portfolio includes approximately $33.5 million of principal amount of debt investments and 40,444,469 shares of preferred stock investments which contain an active PIK provision. (4) Notes bear interest at variable rates and are subject to an interest rate floor where disclosed. The rate disclosed is as of December 31, 2024. (5) Cost value reflects accretion of original issue discount or market discount, or amortization of premium. (6) Cost value reflects repayment of principal. (7) Common stock and warrant investments were non -income producing as of December 31, 2024. (8) Aggregate gross unrealized appreciation for U.S. federal income tax purposes is $3,411,346; aggregate gross unrealized depreciation for U.S. federal income tax purposes is $135,954,221. Net unrealized depreciation is $132,542,875 based upon an estimated tax cost basis of $393,395,734 as of December 31, 2024. (9) Cost reflects accretion of effective yield less any cash distributions received or entitled to be received from CLO equity investments. (10) Totals may not sum due to rounding. (11) Indicates assets that the Company believes do not represent “qualifying assets” under Section 55(a) of the 1940 Act. The Company may include CLO equity side letter related investments within CLO equity subordinated notes line items, and those side letter related investments may represent qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of the Company’s total assets at the time of acquisition of any additional non -qualifying assets. As of December 31, 2024, the Company held qualifying assets that represented 63.8% of its total assets. (12) Investment not domiciled in the United States. (13) Fair value includes the Company’s interest in subordinated fee notes and represents discounted cash flows associated with fees earned from CLO equity investments. (14) Aggregate investments represent greater than 5% of net assets. (15) On March 20, 2024, Alvaria, Inc. completed a recapitalization, by which the Company was assigned new tranches of a new first lien term loan in exchange for its interests in the first and second lien term loans. The Company exchanged $7.8 million of principal in the former first lien term loan for approximately $2.1 million of the first lien second out exchange term loan and approximately $4.9 million of the first lien third out tranche A exchange term loan. The Company exchanged $7.0 million of principal in the former second lien term loan for $2.8 million of the first lien third out tranche B exchange term loan and $2.8 million of the first lien fourth out exchange term loan. All tranches have characteristics of a traditional first lien senior secured loan, however, the first out, second out, third out and fourth out tranches are given priority with respect to payments of principal in that respective order. (16) On June 13, 2024, Careismatic Brands, LLC completed a recapitalization, by which the Company exchanged $12,000,000 of principal in the second lien senior secured notes for 62,157 warrants to buy common stock, as well as a nominal amount of cash that the Company estimates will be approximately $68,000. This amount is included in “Other assets” on the Statements of Assets and Liabilities as of December 31, 2024. (17) As of December 31, 2024, this debt or preferred equity investment was on non -accrual status and no interest or dividend income has been recognized on this investment during the twelve months ended December 31, 2024. The aggregate fair value of these investments was approximately $5.1 million. (continued on next page) The accompanying notes are an integral part of these financial statements. 14 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS — (continued) December 31, 2024 (18) The CLO subordinated notes and income notes are considered equity positions in CLO vehicles. Equity investments are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying fund’s securities less contractual payments to debt holders and fund expenses. The estimated yield indicated is based on the prior quarters ending investment cost (for previously existing portfolio investments) or the original cost for those investments made during the current quarter, as well as, a current projection of the future cash flows. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized. (19) Represents cash equivalents held in a money market fund as of December 31, 2024. (20) The fair value of the investment was determined using significant unobservable inputs. See “Note 3. Fair Value.” (21) The Company holds preferred stock in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares. (22) The Company holds preferred stock in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares. (23) The Company holds preferred stock in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares. (24) The investment is co -invested with the Company’s affiliates. See “Note 7. Related Party Transactions.” (25) The principal balance outstanding for this debt investment, in whole or in part, is indexed to 30 -day SOFR. (26) Cost value reflects amortization. (27) These investments are deemed to be an “affiliate,” as defined in the 1940 Act. In general, under the 1940 Act, we would be presumed to “control” a portfolio company if we owned more than 25% of its voting securities and would be an “affiliate” of a portfolio company if we owned between 5% and 25% of its voting securities. We do not “control” any of our portfolio companies. Fair value as of December 31, 2024 and December 31, 2023 along with transactions during the twelve months ended December 31, 2024 in these affiliated investments are as follows: Name of Issuer Title of Issue Amount of Interest or Dividends Credited to Income (a) Fair Value as of December 31, 2023 Gross Additions (b) Gross Reductions (c) Net Change in Unrealized Depreciation Fair Value as of December 31, 2024 AFFILIATED INVESTMENT: Unitek Global Services, Inc. Common Stock $ — $ — $ — $ — $ — $ — Series B Preferred Stock — — — — — — Series B Senior Preferred Stock — 221,755 — — ( 221,755 ) — Series B Super Senior Preferred Stock — 5,054,337 — — ( 440,237 ) 4,614,100 Total Affiliated Investment — 5,276,092 — — ( 661,992 ) 4,614,100 Total Control Investment — — — — — — TOTAL CONTROL AND AFFILIATED INVESTMENTS $ — $ 5,276,092 $ — $ — $ ( 661,992 ) $ 4,614,100 _________ (a) Represents the total amount of interest or distributions credited to income for the portion of the period an investment was an affiliated investment. (b) Gross additions include increases in investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts and fees. For the year ended December 31, 2024, a total of approximately $5.9 million of PIK dividends were entitled to be received yet deemed uncollectible. (c) Gross reductions include decreases in investments resulting from principal collections related to investment repayments or sales, the amortization of premiums and acquisition costs. (continued on next page) The accompanying notes are an integral part of these financial statements. 15 Table of Contents OXFORD SQUARE CAPITAL CORP. SCHEDULE OF INVESTMENTS — (continued) December 31, 2024 (28) As part of a restructuring completed on September 17, 2021, a portion of the Company’s investment in the first lien senior secured notes of Premiere Global Services, Inc. was converted into a like amount of a new revolving credit facility (the “Replacement Revolver”). On March 15, 2023, the maturity date of the Replacement Revolver was amended from March 15, 2023 to April 7, 2023. The cost basis of the Replacement Revolver was established by allocating a portion of the cost basis from the first lien senior secured notes pro -rata based on the amount of principal that was converted from the first lien senior secured notes to the Replacement Revolver. The Replacement Revolver has no unfunded commitment and is on non -accrual status as of December 31, 2024. (29) The interest rate of these senior secured notes is the stated rate plus the Wall Street Journal quoted Prime Rate. (30) The principal balance outstanding for this debt investment, in whole or in part, is indexed to 90 -day SOFR. (31) The CLO equity investment was optionally redeemed. Expected value of residual distributions, once received, is anticipated to be recognized as return of capital, pending any remaining amortized cost, and/or realized gain for any amounts received in excess of such amortized cost. (32) As of December 31, 2024, the effective yield has been estimated to be 0%. The aggregate projected amount of future recurring distributions and terminal principal payment is less than the amortized investment cost. (33) On August 14, 2024, McAfee Enterprise, LLC (f/k/a Magenta Buyer, LLC) completed a recapitalization, by which the Company was assigned new tranches of new first lien senior secured notes in exchange for its interests in the first and second lien senior secured notes. The Company exchanged $1,954,774 of principal in the former first lien senior secured notes for $234,573 of the first lien first out senior secured notes, $297,126 of the first lien second out senior secured notes, and $1,032,121 of the first lien third out senior secured notes. The Company exchanged $14,968,714 of principal in the former second lien senior secured notes for $972,966 of the first lien second out senior secured notes and $8,756,698 of the first lien third out senior secured notes. All tranches have characteristics of a traditional first lien senior secured loan, however, the first out, second out, and third out tranches are given priority with respect to payments of principal in that respective order. (34) The principal balance outstanding for this debt investment, in whole or in part, is indexed to 180 -day SOFR. (35) On November 14, 2024, Dodge Data & Analytics, LLC completed a recapitalization, by which the Company was assigned principal in new first lien first out senior secured notes and new first lien second out senior secured notes for its interest in the first lien senior secured notes and was assigned a new tranche of second lien senior secured notes for its interest in the second lien senior secured notes. The Company exchanged $4,887,500 of principal in the former first lien senior secured notes for approximately $1,098,901 principal of the first lien first out senior secured notes and approximately $3,055,474 principal of the first lien second out senior secured notes. The Company exchanged $15,000,000 of principal in the former second lien senior secured notes for $15,000,000 of principal in the new second lien senior secured notes, which currently pays all of its interest as PIK, however, there is a cash option, subject to the net leverage ratio of the first lien senior secured notes. In addition, the Company also purchased an additional $1,098,901 of principal of the first lien first out senior secured notes as part of the restructuring. (36) On June 4, 2024, ConvergeOne Holdings, Inc. completed a recapitalization, by which the Company exchanged approximately $5,239,634 of principal in the first lien senior secured notes for approximately $934,808 of principal in new first lien senior secured notes and rights to buy 48,048 shares of common stock (which the Company elected to purchase). The Company also exchanged $15,000,000 of principal in the second lien senior secured notes for 47,727 shares of common stock. The accompanying notes are an integral part of these financial statements. 16 Table of Contents OXFORD SQUARE CAPITAL CORP. STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 INVESTMENT INCOME From non-affiliated/non-control investments: Interest income – debt investments $ 5,534,755 $ 6,421,047 Income from securitization vehicles and investments 3,956,053 3,932,374 Other income 670,242 324,003 Total investment income from non-affiliated/non-control investments 10,161,050 10,677,424 Total investment income 10,161,050 10,677,424 EXPENSES Interest expense 1,959,287 1,960,982 Base Fee 1,058,785 987,816 Professional fees 323,452 311,747 Compensation expense 239,577 206,898 General and administrative 355,259 346,625 Excise tax 120,816 325,800 Total expenses before incentive fees 4,057,176 4,139,868 Net Investment Income Incentive Fees — — Total incentive fees — — Total expenses 4,057,176 4,139,868 Net investment income 6,103,874 6,537,556 NET UNREALIZED (DEPRECIATION)/APPRECIATION AND REALIZED LOSSES ON INVESTMENT TRANSACTIONS Net change in unrealized (depreciation)/appreciation on investments: Non-Affiliate/non-control investments ( 1,366,018 ) 145,111 Affiliated investments ( 700,878 ) ( 356,117 ) Total net change in unrealized depreciation on investments ( 2,066,896 ) ( 211,006 ) Net realized losses: Non-affiliated/non-control investments ( 12,158,495 ) ( 8,094,940 ) Total net realized losses ( 12,158,495 ) ( 8,094,940 ) Net decrease in net assets resulting from operations $ ( 8,121,517 ) $ ( 1,768,390 ) Net increase in net assets resulting from net investment income per common share (Basic and Diluted): $ 0.09 $ 0.11 Net decrease in net assets resulting from operations per common share (Basic and Diluted): $ ( 0.12 ) $ ( 0.03 ) Weighted average shares of common stock outstanding (Basic and Diluted): 69,984,752 59,639,285 Distributions per share $ 0.105 $ 0.105 The accompanying notes are an integral part of these unaudited financial statements. 17 Table of Contents OXFORD SQUARE CAPITAL CORP. STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Decrease in net assets from operations: Net investment income $ 6,103,874 $ 6,537,556 Net change in unrealized depreciation on investments ( 2,066,896 ) ( 211,006 ) Net realized losses ( 12,158,495 ) ( 8,094,940 ) Net decrease in net assets resulting from operations ( 8,121,517 ) ( 1,768,390 ) Distributions to stockholders Distributions from net investment income ( 7,349,702 ) ( 6,263,108 ) Tax return of capital distributions — — Total distributions to stockholders ( 7,349,702 ) ( 6,263,108 ) Capital share transactions: Issuance of common stock (net of underwriting fees and offering costs of $ 108,958 and $ 9,493 , respectively) 3,464,649 923,460 Reinvestment of distributions 223,400 139,236 Net increase in net assets from capital share transactions 3,688,049 1,062,696 Total decrease in net assets ( 11,783,170 ) ( 6,968,802 ) Net assets at beginning of period 160,665,480 151,308,625 Net assets at end of period $ 148,882,310 $ 144,339,823 Capital share activity: Shares issued 1,341,138 324,122 Shares issued from reinvestment of distributions 87,090 47,743 Net increase in capital share activity 1,428,228 371,865 The accompanying notes are an integral part of these unaudited financial statements. 18 Table of Contents OXFORD SQUARE CAPITAL CORP. STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net decrease in net assets resulting from operations $ ( 8,121,517 ) $ ( 1,768,390 ) Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities: Accretion of discounts on investments ( 870,249 ) ( 302,275 ) Accretion of discounts on notes payable and deferred debt issuance costs 152,557 154,252 PIK income ( 839,332 ) ( 13,572 ) Purchases of investments ( 18,529,963 ) ( 8,101,869 ) Repayments of principal 8,684,540 17,914,419 Proceeds from the sale of investments 9,177,794 1,390,625 Net realized losses on investments 12,158,495 8,094,940 Reductions to CLO equity cost value 1,721,862 838,607 Net change in unrealized depreciation on investments 2,066,896 211,006 Decrease in interest and distributions receivable 297,681 1,361,248 Decrease in other assets 188,228 150,260 Decrease in Base Fee and Net Investment Income Incentive Fee payable ( 157,180 ) ( 24,573 ) Increase in accrued expenses 58,045 389,303 Net cash provided by operating activities 5,987,857 20,293,981 CASH FLOWS FROM FINANCING ACTIVITIES Distributions paid (net of stock issued under distribution reinvestment plan of $ 223,400 and $ 139,236 , respectively, and distributions payable of $ - and $ 72,568 , respectively) ( 7,126,302 ) ( 6,051,304 ) Proceeds from issuance of common stock 3,573,607 932,953 Underwriting fees and offering costs for the issuance of common stock ( 108,958 ) ( 9,493 ) Net cash used in financing activities ( 3,661,653 ) ( 5,127,844 ) Net increase in cash and cash equivalents 2,326,204 15,166,137 Cash and cash equivalents, beginning of period 34,926,468 5,740,553 Cash and cash equivalents, end of period $ 37,252,672 $ 20,906,690 NON-CASH FINANCING ACTIVITIES Value of shares issued in connection with distribution reinvestment plan $ 223,400 $ 139,236 Distributions payable $ — $ 72,568 SUPPLEMENTAL DISCLOSURES Cash paid for interest $ 1,806,730 $ 1,806,730 Securities sold not settled $ 1,589,875 $ — Securities purchased not settled $ 9,516,875 $ 3,997,500 The accompanying notes are an integral part of these unaudited financial statements. 19 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 1. UNAUDITED INTERIM FINANCIAL STATEMENTS Interim financial statements of Oxford Square Capital Corp. (“OXSQ” or the “Company”), are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10 -Q and Articles 6, 10 and 12 of Regulation S -X . Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management, the unaudited financial results included herein contain all adjustments, consisting solely of normal accruals, considered necessary for the fair statement of the results for the interim period included herein. The current period’s results of operations are not necessarily indicative of results that may be achieved for the year. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10 -K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (“SEC”) on March 5, 2025. NOTE 2. ORGANIZATION The Company was incorporated under the General Corporation Laws of the State of Maryland (“MGCL”) on July 21, 2003 and is a closed -end investment company. The Company has elected to be regulated as a business development company (“BDC”) under the 1940 Act. In addition, the Company has elected to be treated for tax purposes as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) beginning with its 2003 taxable year. The Company’s investment objective is to maximize its total return, by investing primarily in corporate debt securities and, to a lesser extent, CLOs, which are structured finance investments that own corporate debt securities. The Company’s investment activities are managed by Oxford Square Management, LLC (“Oxford Square Management”). Oxford Square Management is an investment adviser registered under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Oxford Square Management is owned by Oxford Funds, LLC (“Oxford Funds”), its managing member, and Charles M. Royce, a member of the Company’s Board of Directors (the “Board” or “Board of Directors”) who holds a minority, non -controlling interest in Oxford Square Management. Under the investment advisory agreement with Oxford Square Management (the “Investment Advisory Agreement”), the Company has agreed to pay Oxford Square Management an annual base investment advisory fee (the “Base Fee”) based on its gross assets as well as an incentive fee based on its performance. For further details, please refer to “Note 7. Related Party Transactions.” NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Company follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies . In the normal course of business, the Company enters into a variety of undertakings containing a variety of warranties and indemnifications that may expose the Company to some risk of loss. The risk of future loss arising from such undertakings, while not quantifiable, is expected to be remote. USE OF ESTIMATES The financial statements have been prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates, and these differences could be material. 20 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) CONSOLIDATION As provided under Regulation S -X and ASC Topic 946 -810 , Consolidation (“ASC 946 -810 ”) , the Company will generally not consolidate its investment in a company other than a wholly -owned investment company or a controlled operating company whose business consists of providing services to the Company for the periods during which it was held. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of deposits held at custodian banks, and highly liquid investments, such as money market funds, with original maturities of three months or less. The Company places its cash equivalents with financial institutions and, at times, cash held in bank accounts may exceed the Federal Deposit Insurance Corporation insured limit. Cash equivalents are classified as Level 1 assets and are included on the Company’s schedule of investments. Certain cash equivalents are carried at cost or amortized cost, which approximates fair value, and investments held in money market funds are valued at net asset value (“NAV”) per share. INVESTMENT VALUATION The Company’s Board of Directors determines the fair value of the Company’s investments in accordance with the provisions of ASC 820, Fair Value Measurement (“ASC 820”) and Rule 2a -5 under the 1940 Act (“Rule 2a -5 ”). Estimates made in the preparation of the Company’s financial statements include the valuation of investments and the related amounts of unrealized appreciation and depreciation of investments recorded. The Company believes that there is no single definitive method for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments the Company makes. The Board of Directors values the Company’s investments for which market quotations are not readily available at fair value as determined in good faith by the Board of Directors on at least a quarterly basis. ASC 820 clarified the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. ASC 820 defines fair value 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. ASC 820 also establishes a three -tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, which includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities in markets that are not active; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company considers the attributes of current market conditions on an on -going basis and has determined that due to the general illiquidity of the market for its investment portfolio, whereby little or no market data exists, all of the Company’s investments are based upon Level 3 inputs as of March 31, 2025 and December 31, 2024. The Board of Directors determines the value of its investment portfolio each quarter. In connection with that determination, members of Oxford Square Management’s portfolio management team prepare a quarterly analysis of each portfolio investment using the most recent portfolio company financial statements, forecasts and other relevant financial and operational information. The Company has and may continue to engage third -party valuation firms to provide assistance in valuing certain of its syndicated loans and bilateral investments, including related equity investments, although the Board of Directors ultimately determines the appropriate valuation of each such investment. Changes in fair value, as described above, are recorded in the statements of operations as net change in unrealized appreciation/depreciation on investments. 21 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Syndicated Loans (Including Senior Secured Notes) In accordance with ASC 820, the Company’s valuation procedures specifically provide for the review of indicative quotes supplied by the large agent banks that make a market for each security. However, the marketplace from which the Company obtains indicative bid quotes for purposes of determining the fair value of its syndicated loan investments has shown attributes of illiquidity as described by ASC 820. During such periods of illiquidity, when the Company believes that the non -binding indicative bids received from agent banks for certain syndicated loan investments that it owns may not be determinative of their fair value, or when no market indicative quote is available, the Company has and may continue to engage third -party valuation firms to provide assistance in valuing certain syndicated investments that the Company owns. The third -party valuation firms may use the income or market approach in arriving at a valuation. Unobservable inputs utilized could include discount rates derived from estimated credit spreads and earnings before interest, taxes, depreciation, and amortization (“EBITDA”) multiples. In addition, Oxford Square Management analyzes each syndicated loan by reviewing the portfolio company’s financial statements, covenant compliance and recent trading activity in the security, if known, and other business developments related to the portfolio company. All available information, including non -binding indicative bids which may not be determinative of fair value, is presented to the Company’s Valuation Committee (the “Valuation Committee”) to consider in its determination of fair value. In some instances, there may be limited trading activity in a security even though the market for the security is considered not active. In such cases, the Valuation Committee will consider the number of trades, the size and timing of each trade, and other circumstances around such trades, to the extent such information is available, in its determination of fair value. The Valuation Committee will evaluate the impact of such additional information, and factor it into its consideration of the fair value that is indicated by the analysis provided by third -party valuation firms, if any. When we receive warrants or other equity securities at nominal or no additional cost in connection with a new syndicated loan investment, or due to a restructuring of an existing investment, the cost basis in the new investments will be allocated between the new debt securities and any such warrants or other equity securities received at the time of origination/restructuring. These investments may be subsequently valued using a multitude of methods, including, but not limited to, intrinsic value methods, Black -Scholes models, and Monte Carlo option pricing models. All information is presented to the Board for its determination of fair value of these investments. Collateralized Loan Obligations — Debt and Equity The Company has acquired debt and equity positions in CLO investment vehicles and can purchase CLO warehouse facilities. These investments are special purpose financing vehicles. In valuing such investments, the Company considers the indicative prices provided by a recognized industry pricing service as a primary source, and the implied yield of such prices, supplemented by actual trades executed in the market at or around period -end , as well as the indicative prices provided by the broker who arranges transactions in such investment vehicles. The Company also considers those instances in which the record date for an equity distribution payment falls on or before the last day of the period, and the likelihood that a prospective purchaser would require a downward adjustment to the indicative price representing substantially all of the pending distribution. Additional factors include any available information on other relevant transactions including firm bids and offers in the market and information resulting from bids -wanted-in-competition . In addition, the Company considers the operating metrics of the specific investment vehicle, including compliance with collateralization tests, defaulted and restructured securities, and payment defaults, if any. In periods of illiquidity and volatility, the Company may rely more heavily on other qualities and metrics, including but not limited to, the collateral manager, time left in the reinvestment period, expected cash flows and overcollateralization ratios, instead of the Company’s generated valuation yields. Oxford Square Management or the Valuation Committee may request an additional analysis by a third -party firm to assist in the valuation process of CLO investment vehicles. All information is presented to the Board for its determination of fair value of these investments. 22 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Bilateral Investments (Including Equity) Bilateral investments (as defined below) for which market quotations are readily available are valued by an independent pricing agent or market maker. If such market quotations are not readily available, under the valuation procedures approved by the Board, upon the recommendation of the Valuation Committee, a third -party valuation firm will prepare valuations for each of the Company’s bilateral investments that, when combined with all other investments in the same portfolio company, have a value as of the previous quarter of greater than or equal to 2.0 % of its total assets as of the previous quarter. In addition, in those instances where a third -party valuation is prepared for a portfolio investment which meets the parameters noted above, the frequency of those third -party valuations is based upon the grade assigned to each such security under its credit grading system as follows: Grade 1, at least annually; Grade 2, at least semi -annually ; Grades 3, 4, and 5, at least quarterly. Bilateral investments which do not meet the parameters above are not required to have a third -party valuation and, in those instances, a valuation analysis will be prepared by Oxford Square Management. All information is presented to the Board for its determination of fair value of these investments. The term “Bilateral investments” means debt and equity investments directly negotiated between the Company and a portfolio company, but excludes syndicated loans (i.e., corporate loans arranged by an agent on behalf of a company, portions of which are held by multiple investors in addition to OXSQ). Refer to “Note 4. Fair Value” in the notes to the Company’s financial statements for more information on investment valuation and the Company’s portfolio of investments. INVESTMENT INCOME Interest Income Interest income is recorded on an accrual basis using the contractual rate applicable to each debt investment and includes the accretion of market discounts and/or original issue discount (“OID”) and amortization of market premiums. Discounts from and premiums to par value on securities purchased are accreted/amortized into interest income over the life of the respective security using the effective yield method. The amortized cost of investments represents the original cost adjusted for the accretion of discounts and amortization of premiums, if any. Generally, when interest and/or principal payments on a loan become past due, or if the Company otherwise does not expect the borrower to be able to service its debt and other obligations, the Company will place the loan on non -accrual status and will generally cease recognizing interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to restructuring such that the interest income is deemed to be collectible. The Company generally restores non -accrual loans to accrual status when past due principal and interest is paid and, in the Company’s judgment, is likely to remain current. As of March 31, 2025, the Company had no debt investments that were on non -accrual status. As of December 31, 2024, the Company had one debt investment that was on non -accrual status. Interest income also includes a payment -in-kind (“PIK”) component on certain investments in the Company’s portfolio. Refer to the section below, “Payment -In-Kind ,” for a description of PIK income and its impact on interest income. Payment-In-Kind The Company has debt and preferred stock investments in its portfolio that contain contractual PIK provisions. PIK interest and preferred stock dividends are computed at their contractual rates and are accrued into income and recorded as interest and dividend income, respectively. The PIK amounts are added to the principal balances on the capitalization dates. Upon capitalization, the PIK portions of the investments are valued at their respective fair values. If the Company believes that PIK is not fully expected to be realized, the PIK investment would be placed on non -accrual status. When a PIK investment is placed on non -accrual status, the accrued, uncapitalized interest or dividends would be reversed from the related receivable through interest or dividend income, respectively. PIK investments on 23 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) non -accrual status are restored to accrual status once it becomes probable that such PIK will be ultimately collectible in cash. For the three months ended March 31, 2025, approximately $ 708,000 of PIK was recognized as interest income and approximately $ 131,000 of PIK was recognized as other income. For the three months ended March 31, 2024, approximately $ 14,000 of PIK was recognized as interest income. For the three months ended March 31, 2025 and 2024, the Company did not recognize PIK dividend income on its preferred stock investments. Income from Securitization Vehicles and Investments Income from investments in the equity class securities of CLO vehicles (typically income notes or subordinated notes) is recorded using the effective interest method in accordance with the provisions of ASC 325 -40 , Beneficial Interests in Securitized Financial Assets , based upon estimated cash flows, amounts and timing, including those CLO equity investments that have not made their inaugural distribution for the relevant period end. The Company monitors the expected residual payments, and effective yield is determined and updated periodically, as needed. Accordingly, investment income recognized on CLO equity securities in the statements of operations differs from both the tax -basis investment income and from the cash distributions actually received by the Company during the period. The Company also records income on its investments in CLO warehouse facilities based on a stated rate per the underlying note purchase agreement plus accrued interest or, if there is no stated rate, then an estimated rate is calculated using a base case model projecting the timing of the ramp -up of the CLO warehouse facility. For the three months ended March 31, 2025 and 2024, no income was recognized related to CLO warehouse facilities. As of March 31, 2025 and December 31, 2024, the Company did not hold any investments in CLO warehouse facilities. Other Income Other income includes prepayment, amendment, and other fees earned by the Company’s loan investments, distributions from fee letters and success fees associated with portfolio investments. Distributions from fee letters are an enhancement to the return on a CLO equity investment and are based upon a percentage of the collateral manager’s fees above the amortized cost, and are recorded as other income when earned. The Company may also earn success fees associated with its investments in certain securitization vehicles or CLO warehouse facilities, which are contingent upon a repayment of the warehouse by a permanent CLO securitization structure; such fees are earned and recognized when the repayment is completed. The Company also earns other income on its cash equivalents balance, which represents cash invested in a money market fund. Preferred Stock Dividends The Company holds preferred stock investments in its portfolio that contain cumulative preferred dividends that accumulate quarterly. The Company will generally record cumulative preferred dividends as investment income when they are received or declared by the portfolio company’s board of directors or upon any voluntary or involuntary liquidation, dissolution or winding up of the portfolio company, and are collectible. There were no cumulative preferred dividends recorded as dividend income during the three months ended March 31, 2025 and 2024, as the Company deemed them to be uncollectible. DEFERRED DEBT ISSUANCE COSTS Deferred debt issuance costs consist of fees and expenses incurred in connection with the closing or amending of credit facilities and debt offerings, and are capitalized at the time of payment. These costs are amortized using the straight line method over the terms of the respective credit facilities and debt securities. The amortized expenses are included in interest expense in the Company’s financial statements. The unamortized deferred debt issuance costs are included on the Company’s statements of assets and liabilities as a direct deduction from the related debt liability. Upon early termination or partial principal pay down of debt, or a credit facility, the unamortized costs related to such debt are accelerated into realized losses on extinguishment of debt on the Company’s statements of operations. 24 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) EQUITY OFFERING COSTS Equity offering costs consist of fees and expenses incurred in connection with the registration and public offer and sale of the Company’s common stock, including legal, accounting and printing fees. These costs are deferred at the time of incurrence and are subsequently charged as a reduction to capital when the offering takes place or as shares are issued. Deferred costs are periodically reviewed and expensed if the related registration is no longer active. SHARE REPURCHASES From time to time, the Board may authorize a share repurchase program under which shares are purchased in open market transactions. Since the Company is incorporated in Maryland, MGCL requires share repurchases to be accounted for as a share retirement. The cost of repurchased shares is charged against capital on the settlement date. SECURITIES TRANSACTIONS Securities transactions are recorded on the trade date. Realized gains and losses on investments sold are recorded on the basis of specific identification. An optional redemption (“optionally redeemed”) feature of a CLO allows a majority of the holders of the equity securities issued by the CLO issuer, after the end of a specified non -call period, to cause the redemption of the secured notes issued by the CLO with proceeds paid either through the liquidation of the CLO’s assets or through a refinancing with new debt. The optional redemption is effectively a voluntary prepayment of the secured debt issued by the CLO prior to the stated maturity of such debt. Distributions received on CLO equity investments where the optional redemption feature has been exercised are first applied to the remaining cost basis until it is reduced to zero, after which distributions are recorded as realized gains. U.S. FEDERAL INCOME TAXES The Company intends to operate so as to qualify to be taxed as a RIC under Subchapter M of the Code and, as such, to not be subject to U.S. federal income tax on the portion of its taxable income and gains timely distributed to stockholders. To qualify for RIC tax treatment, the Company is required to distribute at least 90 % of its investment company taxable income annually, meet certain source -of-income requirements annually and certain diversification requirements quarterly and file Form 1120 -RIC , as defined by the Code. Because U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also result from the treatment of short -term gains as ordinary income for tax purposes. The Company recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Through March 31, 2025, management has analyzed the Company’s tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions expected to be taken in the Company’s 2024 or 2025 tax returns. The Company identifies its major tax jurisdictions as U.S. Federal and the state of Connecticut. The Company did not have any uncertain tax positions that met the recognition measurement criteria of ASC 740 -10-25 , Income Taxes , nor did the Company have any unrecognized tax benefits as of the periods presented herein. The Company files tax returns with the Internal Revenue Service and the state of Connecticut. Generally, each of the tax returns filed in the three -year period ended March 31, 2025 remains subject to examination by taxing authorities. For tax purposes, the cost basis of the portfolio investments as of March 31, 2025 and December 31, 2024, was approximately $ 379,513,985 and $ 393,395,734 , respectively. 25 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) RECENT ACCOUNTING PRONOUNCEMENTS In November 2024, the FASB issued ASU 2024 -03 , “Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures” (“ASU 2024 -03 ”), which requires public business entities to disclose disaggregated expense details in their income statements, including categories such as employee compensation, depreciation, and amortization. The update aims to enhance transparency by requiring tabular disclosures and qualitative descriptions for unspecified amounts. Additionally, entities must report total selling expenses and their definitions annually. The standard is effective for annual periods beginning after December 15, 2026, with interim periods following in 2027, and early adoption is permitted. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact on its financial statements. Other than the aforementioned guidance, the Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements. NOTE 4. FAIR VALUE The Company’s assets measured at fair value by investment type on a recurring basis as of March 31, 2025 were as follows: Fair Value Measurements at Reporting Date Using Total Assets ($ in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Senior Secured Notes $ — $ — $ 147.3 $ 147.3 CLO Equity — — 91.3 91.3 Equity and Other Investments — — 4.5 4.5 Total Investments at fair value (1) — — 243.2 243.2 Cash equivalents 37.0 — — 37.0 Total assets at fair value $ 37.0 $ — $ 243.2 $ 280.2 ____________ (1) Totals may not sum due to rounding T he Company’s assets measured at fair value by investment type on a recurring basis as of December 31, 2024 were as follows: Fair Value Measurements at Reporting Date Using Total Assets ($ in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Senior Secured Notes $ — $ — $ 150.7 $ 150.7 CLO Equity — — 104.6 104.6 Equity and Other Investments — — 5.6 5.6 Total Investments at fair value — — 260.9 260.9 Cash equivalents 34.4 — — 34.4 Total assets at fair value $ 34.4 $ — $ 260.9 $ 295.3 26 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 4. FAIR VALUE (cont.) Significant Unobservable Inputs for Level 3 Investments The following tables provide quantitative information about the Company’s Level 3 fair value measurements as of March 31, 2025 and December 31, 2024, respectively. The Company’s Valuation Policy, which was previously approved by the Board, establishes parameters for the sources and types of valuation analysis, as well as the methodologies and inputs that the Company uses in determining fair value. If the Valuation Committee or Oxford Square Management determines that additional techniques, sources or inputs are appropriate or necessary in a given situation, such additional analysis will be undertaken. The tables, therefore, are not all -inclusive , but provide information on the significant Level 3 inputs that are pertinent to the Company’s fair value measurements. The weighted average calculations in the tables below are based on fair values for all debt related calculations and CLO equity. Quantitative Information about Level 3 Fair Value Measurements Range/Weighted Average (1) Impact to Fair Value from an Increase in Input (2) Assets ($ in millions) Fair Value as of March 31, 2025 Valuation Techniques/ Methodologies Unobservable Input Senior Secured Notes $ 147.3 Market quotes NBIB (3) 30.0% – 100.1%/80.7% NA CLO equity 90.4 Market quotes NBIB (3) 0.0% – 80.0%/27.6% NA 0.9 Discounted cash flow (5) Discount rate (6) 5.3% – 19.5%/19.3% Decrease 0.0 Liquidation Net Asset Value (9) NBIB (3) 0.0% – 0.1%/0.1% NA Equity/Other 0.6 Market quotes NBIB (3) $6.50/ncm (4) Increase Investments 3.9 Enterprise value (7) LTM EBITDA (8) $34.0 million/ncm (4) Increase Market multiples (8) 7.8x – 8.8x/8.3x Increase Total Fair Value for Level 3 Investments (10) $ 243.2 ____________ (1) Weighted averages are calculated based on fair value of investments. (2) The impact on the fair value measurement of an increase in each unobservable input is in isolation. The discount rate is the rate used to discount future cash flows in a discounted cash flow calculation. An increase in the discount rate, in isolation, would result in a decrease in the fair value measurement. Market Multiples/EBITDA refer to the input (often derived from the value of a comparable company) that is multiplied by the historic and/or expected EBITDA of a company in order to estimate the company’s value. An increase in the Market Multiples/EBITDA, in isolation, would result in an increase in the fair value measurement. (3) The Company generally uses prices provided by an independent pricing service, or broker or agent bank non -binding indicative bid prices (“NBIB”), on or near the valuation date as the primary basis for the fair value determinations for syndicated notes, and CLO debt and equity investments, which may be adjusted for pending equity distributions as of valuation date. These bid prices are non -binding and may not be determinative of fair value. Each bid price is evaluated by the Valuation Committee in conjunction with additional information compiled by Oxford Square Management, including financial performance, recent business developments, and, in the case of CLO debt and equity investments, performance and covenant compliance information as provided by the independent trustee. (4) The calculation of weighted average for a range of values, for a single investment within a given asset category, is not considered to provide a meaningful representation (“ncm”). (5) The Company calculates the fair value of certain CLO equity investments based upon the net present value of expected contractual payment streams discounted using estimated market yields for the equity tranche of the respective CLO vehicle. The Company also considers those investments in which the record date for an equity distribution payment falls on or before the last day of the period, and the likelihood that a prospective purchaser would require an adjustment to the transaction price representing substantially all of the pending distribution. (6) Discount rate represents the rate at which future cash flows are discounted to calculate a present value, reflecting market assumptions for risk. 27 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 4. FAIR VALUE (cont.) (7) Enterprise value is defined as the total value of a company, including debt and cash. For senior secured notes and equity investments, third -party valuation firms evaluate the financial and operational information of the portfolio companies that the Company provides to them, as well as independent market and industry information that they consider appropriate in forming an opinion as to the fair value of the Company’s securities. In those instances where the carrying value and/or internal credit rating of the investment does not require the use of a third -party valuation firm, a valuation is prepared by Oxford Square Management, which may include liquidation analysis or which may utilize a subsequent transaction to provide an indication of fair value. (8) EBITDA, or earnings before interest expense, taxes, depreciation and amortization, is an unobservable input which is generally based on the most recently available twelve -month financial statements provided by the portfolio company. Market multiples, also an unobservable input, represent an estimation of where market participants might value an enterprise based upon information available for comparable companies in the market. “LTM” refers to “last twelve months.” (9) The fair value of those CLO equity positions which have been optionally redeemed are generally valued using a liquidation net asset value basis which represents the estimated expected residual value of the CLO as of the end of the period. (10) Totals may not sum due to rounding. Quantitative Information about Level 3 Fair Value Measurements Range/Weighted Average (1) Impact to Fair Value from an Increase in Input (2) Assets ($ in millions) Fair Value as of December 31, 2024 Valuation Techniques/ Methodologies Unobservable Input Senior Secured Notes $ 150.2 Market quotes NBIB (3) 2.0% – 101.0%/75.3% NA 0.5 Liquidation Net Asset Value NBIB (3) 19.9% – 19.9%/19.9% NA CLO equity 103.6 Market quotes NBIB (3) 0.0% – 83.9%/30.8% NA 1.0 Discounted cash flow (5) Discount rate (6) 6.0% – 21.1%/20.1% Decrease 0.0 Liquidation Net Asset Value (9) NBIB (3) 0.0% – 0.1%/0.0% NA Equity and Other Investments 1.0 Market quotes NBIB (3) $10/ncm (4) NA 4.6 Enterprise value (7) LTM EBITDA (8) $ 34.0 million/ncm (4) Increase Market multiples (8) 8.3x – 9.3x/8.8x Increase Total Fair Value for Level 3 Investments $ 260.9 ____________ (1) Weighted averages are calculated based on fair value of investments. (2) The impact on the fair value measurement of an increase in each unobservable input is in isolation. The discount rate is the rate used to discount future cash flows in a discounted cash flow calculation. An increase in the discount rate, in isolation, would result in a decrease in the fair value measurement. Market Multiples/EBITDA refer to the input (often derived from the value of a comparable company) that is multiplied by the historic and/or expected EBITDA of a company in order to estimate the company’s value. An increase in the Market Multiples/EBITDA, in isolation, would result in an increase in the fair value measurement. (3) The Company generally uses prices provided by an independent pricing service, or broker or agent bank non -binding indicative bid prices (“NBIB”), on or near the valuation date as the primary basis for the fair value determinations for syndicated notes, and CLO debt and equity investments, which may be adjusted for pending equity distributions as of valuation date. These bid prices are non -binding and may not be determinative of fair value. Each bid price is evaluated by the Valuation Committee in conjunction with additional information compiled by Oxford Square Management, including financial performance, recent business developments, and, in the case of CLO debt and equity investments, performance and covenant compliance information as provided by the independent trustee. (4) The calculation of weighted average for a range of values, for a single investment within a given asset category, is not considered to provide a meaningful representation (“ncm”). (5) The Company calculates the fair value of certain CLO equity investments based upon the net present value of expected contractual payment streams discounted using estimated market yields for the equity tranche of the respective CLO vehicle. The Company also considers those investments in which the record date for an equity distribution payment falls on or before the last day of the period, and the likelihood that a prospective purchaser would require an adjustment to the transaction price representing substantially all of the pending distribution. 28 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 4. FAIR VALUE (cont.) (6) Discount rate represents the rate at which future cash flows are discounted to calculate a present value, reflecting market assumptions for risk. (7) Enterprise value is defined as the total value of a company, including debt and cash. For senior secured notes and equity investments, third -party valuation firms evaluate the financial and operational information of the portfolio companies that the Company provides to them, as well as independent market and industry information that they consider appropriate in forming an opinion as to the fair value of the Company’s securities. In those instances where the carrying value and/or internal credit rating of the investment does not require the use of a third -party valuation firm, a valuation is prepared by Oxford Square Management, which may include liquidation analysis or which may utilize a subsequent transaction to provide an indication of fair value. (8) EBITDA, or earnings before interest expense, taxes, depreciation and amortization, is an unobservable input which is generally based on the most recently available twelve -month financial statements provided by the portfolio company. Market multiples, also an unobservable input, represent an estimation of where market participants might value an enterprise based upon information available for comparable companies in the market. “LTM” refers to “last twelve months.” (9) The fair value of those CLO equity positions which have been optionally redeemed are generally valued using a liquidation net asset value basis which represents the estimated expected residual value of the CLO as of the end of the period. Financial Instruments Disclosed, But Not Carried, At Fair Value The following table presents the carrying value and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of March 31, 2025, and the level of each financial liability within the fair value hierarchy: ($ in millions) Carrying Value (1) Fair Value (2) Level 1 Level 2 Level 3 6.25% Unsecured Notes $ 44.5 44.7 — 44.7 — 5.50% Unsecured Notes 79.2 75.2 — 75.2 — Total (3) $ 123.8 $ 120.0 $ — $ 120.0 $ — ____________ (1) Carrying value is net of unamortized deferred debt issuance costs. Unamortized deferred debt issuance costs associated with the 6.25 % Unsecured Notes totaled approximately $ 0.3 million as of March 31, 2025. Unamortized deferred debt issuance costs associated with the 5.50 % Unsecured Notes totaled approximately $ 1.3 million as of March 31, 2025. (2) For the 6.25 % Unsecured Notes and 5.50 % Unsecured Notes, fair value is based upon the closing price on the last day of the period. The 6.25 % Unsecured Notes and 5.50 % Unsecured Notes are listed on the NASDAQ Global Select Market (trading symbol “OXSQZ”, and “OXSQG”, respectively). (3) Totals may not sum due to rounding. The following table presents the carrying value and fair value of the Company’s financial liabilities disclosed, but not carried, at fair value as of December 31, 2024 and the level of each financial liability within the fair value hierarchy: ($ in millions) Carrying Value (1) Fair Value (2) Level 1 Level 2 Level 3 6.25% Unsecured Notes $ 44.5 $ 44.4 $ — $ 44.4 $ — 5.50% Unsecured Notes 79.1 74.7 — 74.7 — Total $ 123.6 $ 119.1 $ — $ 119.1 $ — ____________ (1) Carrying value is net of unamortized deferred debt issuance costs. Unamortized deferred debt issuance costs associated with the 6.25 % Unsecured Notes totaled approximately $ 0.3 million as of December 31, 2024. Unamortized deferred debt issuance costs associated with the 5.50 % Unsecured Notes totaled approximately $ 1.4 million as of December 31, 2024. (2) For the 6.25 % Unsecured Notes and 5.50 % Unsecured Notes, fair value is based upon the closing price on the last day of the period. The 6.25 % Unsecured Notes and 5.50 % Unsecured Notes are listed on the NASDAQ Global Select Market (trading symbol “OXSQZ” and “OXSQG”, respectively). 29 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 4. FAIR VALUE (cont.) A reconciliation of the fair value of investments for the three months ended March 31, 2025, utilizing significant unobservable inputs, is as follows: ($ in millions) Senior Secured Notes CLO Equity Equity and Other Investments Total (2) Balance at December 31, 2024 $ 150.7 $ 104.6 $ 5.6 $ 260.9 Realized (losses)/gains included in earnings ( 12.6 ) — 0.4 ( 12.2 ) Net unrealized appreciation/(depreciation) included in earnings 10.5 ( 11.6 ) ( 1.0 ) ( 2.1 ) Accretion of discounts 0.9 — — 0.9 Purchases 16.0 — — 16.0 Repayments and Sales ( 19.0 ) — ( 0.5 ) ( 19.5 ) Reductions to CLO Equity cost value (1) — ( 1.7 ) — ( 1.7 ) PIK income 0.8 — — 0.8 Transfers in and/or (out) of level 3 — — — — Balance at March 31, 2025 (2) $ 147.3 $ 91.3 $ 4.5 $ 243.2 Net change in unrealized depreciation on Level 3 investments still held as of March 31, 2025 $ ( 1.7 ) $ ( 11.5 ) $ ( 0.9 ) $ ( 14.1 ) ____________ (1) Reduction to CLO equity cost value of approximately $ 1.7 million represented the distributions received, or entitled to be received, on the Company’s investments held in CLO equity subordinated and income notes of approximately $ 5.7 million, plus the amortization of cost of the Company’s CLO fee notes of approximately $ 6,000 , less the effective yield interest income recognized on the Company’s CLO equity subordinated and income notes of approximately $ 4.0 million. (2) Totals may not sum due to rounding. A reconciliation of the fair value of investments for the year ended December 31, 2024, utilizing significant unobservable inputs, is as follows: ($ in millions) Senior Secured Notes CLO Equity Equity and Other Investments Total (2) Balance at December 31, 2023 $ 179.5 $ 82.2 $ 5.3 $ 266.9 Net realized losses included in earnings ( 94.4 ) ( 1.9 ) — ( 96.2 ) Net unrealized appreciation/(depreciation) included in earnings 73.2 3.5 ( 1.1 ) 75.7 Accretion of discounts 1.7 — — 1.7 Purchases 76.3 35.2 0.7 112.2 Repayments and Sales ( 85.4 ) ( 1.4 ) — ( 86.8 ) Transfers between asset classes ( 0.7 ) — 0.7 — Reductions to CLO Equity cost value (1) — ( 13.0 ) — ( 13.0 ) PIK interest income 0.5 — — 0.5 Transfers in and/or (out) of level 3 — — — — Balance at December 31, 2024 (2) $ 150.7 $ 104.6 $ 5.6 $ 260.9 Net change in unrealized (depreciation)/appreciation on Level 3 investments still held as of December 31, 2024 $ ( 10.0 ) $ 1.1 $ ( 1.1 ) $ ( 10.0 ) ____________ (1) Reduction to CLO equity cost value of approximately $ 13.0 million represented the distributions received, or entitled to be received, on the Company’s investments held in CLO equity subordinated and income notes of approximately $ 28.4 million, plus the amortization of cost of the Company’s CLO fee notes of approximately $ 71,000 , less the effective yield interest income recognized on the Company’s CLO equity subordinated and income notes of approximately $ 15.4 million. (2) Totals may not sum due to rounding. 30 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 4. FAIR VALUE (cont.) The following table shows the fair value of the Company’s portfolio of investments by asset class as of March 31, 2025 and December 31, 2024: ($ in millions) March 31, 2025 December 31, 2024 Investments at Fair Value Percentage of Total Portfolio Investments at Fair Value Percentage of Total Portfolio Senior Secured Notes $ 147.3 60.6 % $ 150.7 57.8 % CLO Equity 91.3 37.5 % 104.6 40.1 % Equity and Other Investments 4.5 1.9 % 5.6 2.1 % Total (1) $ 243.2 100.0 % $ 260.9 100.0 % ____________ (1) Totals may not sum due to rounding. NOTE 5. CASH AND CASH EQUIVALENTS At March 31, 2025 and December 31, 2024, respectively, cash and cash equivalents were as follows: March 31, 2025 December 31, 2024 Cash $ 275,070 $ 493,380 Cash Equivalents 36,977,602 34,433,088 Total Cash and Cash Equivalents $ 37,252,672 $ 34,926,468 For further details regarding the composition of cash and cash equivalents refer to “Note 3. Summary of Significant Accounting Policies.” NOTE 6. BORROWINGS In accordance with the 1940 Act, with certain limited exceptions, the Company is only allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 150 %, immediately after such borrowing. As of March 31, 2025 and December 31, 2024, the Company’s asset coverage for borrowed amounts was 218 % and 227 %, respectively. The following are the Company’s outstanding principal amounts, carrying values and fair values of the Company’s borrowings as of March 31, 2025 and December 31, 2024. The fair value of the 6.25 % Unsecured Notes is based upon the closing price on the last day of the period. The 6.25 % Unsecured Notes are listed on the NASDAQ Global Select Market (trading symbol “OXSQZ”). The fair value of the 5.50 % Unsecured Notes is based upon the closing price on the last day of the period. The 5.50 % Unsecured Notes are listed on the NASDAQ Global Select Market (trading symbol “OXSQG”). ($ in millions) As of March 31, 2025 December 31, 2024 Principal Amount Carrying Value (1) Fair Value Principal Amount Carrying Value (1) Fair Value 6.25% Unsecured Notes $ 44.8 $ 44.5 $ 44.7 $ 44.8 $ 44.5 $ 44.4 5.50% Unsecured Notes 80.5 79.2 75.2 80.5 79.1 74.7 Total (2) $ 125.3 $ 123.8 $ 120.0 $ 125.3 $ 123.6 $ 119.1 ____________ (1) The Carrying Value represents the aggregate principal amount outstanding less the unamortized deferred issuance costs. As of March 31, 2025, the total unamortized deferred issuance costs for the 6.25 % Unsecured Notes and 5.50 % Unsecured Notes was approximately $ 0.3 million and $ 1.3 million, respectively. As of December 31, 2024, the total unamortized deferred issuance costs for the 6.25 % Unsecured Notes, and 5.50 % Unsecured Notes was approximately $ 0.3 million, and $ 1.4 million, respectively. (2) Totals may not sum due to rounding. 31 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 6. BORROWINGS (cont.) The weighted average stated interest rate and weighted average maturity on the Company’s borrowings as of March 31, 2025 were 5.77 % and 2.5 years, respectively, and as of December 31, 2024 were 5.77 % and 2.8 years, respectively. The tables below summarize the components of interest expense for the three months ended March 31, 2025 and March 31, 2024, respectively: ($ in thousands) Three Months Ended March 31, 2025 Stated Interest Expense Amortization of Deferred Debt Issuance Costs Total (1) 6.25% Unsecured Notes $ 699.9 $ 57.5 $ 757.4 5.50% Unsecured Notes 1,106.9 95.1 1,202.0 Total (1) $ 1,806.8 $ 152.6 $ 1,959.3 ____________ (1) Totals may not sum due to rounding ($ in thousands) Three Months Ended March 31, 2024 Stated Interest Expense Amortization of Deferred Debt Issuance Costs Total 6.25% Unsecured Notes $ 699.9 $ 58.1 $ 758.0 5.50% Unsecured Notes 1,106.9 96.1 1,203.0 Total $ 1,806.8 $ 154.2 $ 1,961.0 Notes Payable — 6.25% Unsecured Notes Due 2026 (the “6.25% Unsecured Notes”) On April 3, 2019, the Company completed an underwritten public offering of approximately $ 44.8 million in aggregate principal amount of 6.25 % Unsecured Notes. The 6.25 % Unsecured Notes will mature on April 30, 2026 , and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after April 30, 2022. The 6.25 % Unsecured Notes bear interest at a rate of 6.25 % per year payable quarterly on January 31, April 30, July 31, and October 31, of each year. The aggregate accrued interest payable on the 6.25 % Unsecured Notes as of March 31, 2025 was approximately $ 467,000 . As of March 31, 2025, the Company had unamortized deferred debt issuance costs of approximately $ 252,000 relating to the 6.25 % Unsecured Notes. The deferred debt issuance costs are being amortized over the term of the 6.25 % Unsecured Notes and are included in interest expense in the statements of operations. The cash paid and the effective annualized interest rate for the three months ended March 31, 2025 were approximately $ 700,000 and 6.86 %, respectively. The cash paid and the effective annualized interest rate for the three months ended March 31, 2024 were approximately $ 700,000 and 6.81 %, respectively. Notes Payable — 5.50% Unsecured Notes Due 2028 (the “5.50% Unsecured Notes”) On May 20, 2021, the Company completed an underwritten public offering of approximately $ 80.5 million in aggregate principal amount of 5.50 % Unsecured Notes. The 5.50 % Unsecured Notes will mature on July 31, 2028 , and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after May 31, 2024. The 5.50 % Unsecured Notes bear interest at a rate of 5.50 % per year payable quarterly on January 31, April 30, July 31, and October 31, of each year. 32 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 6. BORROWINGS (cont.) The aggregate accrued interest payable on the 5.50 % Unsecured Notes as of March 31, 2025 was approximately $ 738,000 . As of March 31, 2025, the Company had unamortized deferred debt issuance costs of approximately $ 1.3 million relating to the 5.50 % Unsecured Notes. The deferred debt issuance costs are being amortized over the term of the 5.50 % Unsecured Notes and are included in interest expense in the statements of operations. The cash paid and the effective annualized interest rate for the three months ended March 31, 2025 were approximately $ 1.1 million and 6.06 %, respectively. The cash paid and the effective annualized interest rate for the three months ended March 31, 2024 were approximately $ 1.1 million and 6.01 %, respectively. NOTE 7. RELATED PARTY TRANSACTIONS The Company pays Oxford Square Management a fee for its services under the Investment Advisory Agreement consisting of — a base investment advisory fee (the “Base Fee”) based on its gross assets, as described below, and two types of incentive fees. The cost of both the Base Fee and any incentive fees earned by Oxford Square Management are ultimately borne by the Company’s common stockholders. As described in greater detail under Item 1. Business — Investment Advisory Agreement — Advisory Fee in its Annual Report on Form 10 -K for the year ended December 31, 2024, the Company first calculates the Base Fee and any incentive fee under the terms of the Investment Advisory Agreement, then calculates the Base Fee and any incentive fee under the terms of the fee waiver letter unilaterally adopted by Oxford Square Management, effective April 1, 2016 (the “2016 Fee Waiver”), and, finally, adopts the lower of two combined results as the total fees payable to Oxford Square Management. Base Fee The Base Fee is payable quarterly in arrears, calculated based on a percentage of the average value of the Company’s gross assets at the end of the two most recently completed calendar quarters, and appropriately prorated for any partial quarter. Accordingly, the Base Fee will be payable regardless of whether the value of the Company’s gross assets has decreased during the quarter. Under the terms of the Investment Advisory Agreement, the Base Fee is calculated at an annual rate of 2.00 %, and appropriately adjusted for any equity or debt capital raises, repurchases, or redemptions during the current calendar quarter. Under the terms of the 2016 Fee Waiver, for the purpose of calculating the amount of total advisory fees (if any) to be waived during a particular calendar quarter, the Base Fee (as a portion of the total calculation) is calculated at an annual rate of 1.50 %, and adjusted pro rata for any share issuances, debt issuances, repurchases or redemptions during the current calendar quarter; provided, however, that no Base Fee is payable on the cash proceeds received by the Company in connection with any share or debt issuances until such proceeds have been invested in accordance with the Company’s investment objectives. The following table represents the portion of the total advisory fee ascribed to the Base Fee (pursuant to the 2016 Fee Waiver calculation) for the three months ended March 31, 2025 and 2024, respectively: ($ in millions) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Base Fee $ 1.1 $ 1.0 The Base Fee payable to Oxford Square Management as of March 31, 2025 and December 31, 2024 was $ 1.1 million and $ 1.2 million, respectively. 33 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 7. RELATED PARTY TRANSACTIONS (cont.) Incentive Fee The incentive fees are commonly referred to as the “Income Incentive Fee” and the “Capital Gains Incentive Fee,” with the first fee payable quarterly in arrears and the second fee payable in arrears at the end of each calendar year. Net Investment Income Incentive Fee The first fee (the “Net Investment Income Incentive Fee”), is determined by reference to the Company’s “Pre -Incentive Fee Net Investment Income” (as defined below). Given that this incentive fee is payable without regard to any gain, loss or unrealized depreciation that may occur during the quarter, Oxford Square Management’s incentive fee may be payable notwithstanding a decline in net asset value that quarter. Under the terms of the Investment Advisory Agreement, the Net Investment Income Incentive Fee is calculated 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, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter minus the Company’s operating expenses for the quarter (including the Base Fee, expenses payable under the administration agreement, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre -Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest, and zero coupon securities), accrued income that we have not yet received in cash. Pre -Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. • Pre -Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, is compared to one -fourth of an annual “hurdle rate.” The annual hurdle rate is determined as of the immediately preceding December 31 st by adding 5.0 % to the interest rate then payable on the most recently issued five -year U.S. Treasury Notes, up to a maximum annual hurdle rate of 10.0 %. The annual hurdle rates for the 2025 and 2024 calendar years, calculated as of the immediately preceding December 31 st , were 9.38 % and 8.84 % respectively, under the terms of the Investment Advisory Agreement. The Company’s net investment income (to the extent not distributed to stockholders) used to calculate the Net Investment Income Incentive Fee was also included in the amount of gross assets used to calculate the 2 % Base Fee. a. The operation of the incentive fee with respect to the Company’s Pre -Incentive Fee Net Investment Income for each quarter is as follows: i. no incentive fee is payable to Oxford Square Management in any calendar quarter in which the Pre -Incentive Fee Net Investment Income does not exceed one fourth of the annual hurdle rate ( 9.38 % for the 2025 calendar year). ii. 20 % of the amount of the Pre -Incentive Fee Net Investment Income, if any, that exceeds one -fourth of the annual hurdle rate ( 9.38 % for the 2025 calendar year) in any calendar quarter is payable to Oxford Square Management (i.e., once the hurdle rate is reached, 20 % of all Pre -Incentive Fee Net Investment Income thereafter will be allocated to Oxford Square Management). 34 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 7. RELATED PARTY TRANSACTIONS (cont.) Under the terms of the 2016 Fee Waiver, for the purpose of calculating the amount of total advisory fees (if any) to be waived during a particular calendar quarter, the Income Incentive Fee (as a portion of the total calculation) is calculated based on the amount by which (x) the “Pre -Incentive Fee Net Investment Income” (as defined below) for the calendar quarter exceeds (y) the “Preferred Return Amount” (as defined below) for the calendar quarter. a. A “Preferred Return Amount” is calculated on a quarterly basis by multiplying 1.75 % by the Company’s net asset value at the end of the immediately preceding calendar quarter. b. The Net Investment Income Incentive Fee is then calculated as follows: (a) no Net Investment Income Incentive Fee is payable to Oxford Square Management in any calendar quarter in which the “Pre -Incentive Fee Net Investment Income” does not exceed the “Preferred Return Amount”; (b) 100 % of the “Pre -Incentive Fee Net Investment Income” for such quarter, if any, that exceeds the “Preferred Return Amount” but is less than or equal to a “Catch -Up Amount” determined on a quarterly basis by multiplying 2.1875 % by OXSQ’s net asset value at the end of such calendar quarter; and (c) for any quarter in which the “Pre -Incentive Fee Net Investment Income” exceeds the “Catch -Up Amount,” the Net Investment Income Incentive Fee will be 20 % of the amount of the “Pre -Incentive Fee Net Investment Income” for such quarter. c. There is no accumulation of amounts from quarter to quarter for the “Preferred Return Amount,” and accordingly there is no claw back of amounts previously paid to Oxford Square Management if the “Pre -Incentive Fee Net Investment Income” for subsequent quarters is below the quarterly “Preferred Return Amount,” and there is no delay of payment of incentive fees to Oxford Square Management if the “Pre -Incentive Fee Net Investment Income” for prior quarters is below the quarterly “Preferred Return Amount” for the quarter for which the calculation is being made. d. The calculation of the Company’s Net Investment Income Incentive Fee is subject to a total return requirement that provides that a Net Investment Income Incentive Fee will not be payable to Oxford Square Management except to the extent 20 % of the “cumulative net increase in net assets resulting from operations” (which is the amount, if positive, of the sum of the “Pre -Incentive Fee Net Investment Income,” realized gains and losses and unrealized appreciation and depreciation) during the calendar quarter for which such fees are being calculated and the eleven (11) preceding quarters exceeds the cumulative Net Investment Income Incentive Fees accrued and/or paid for such eleven (11) preceding quarters. In the event that the advisory fee calculations under the 2016 Fee Waiver produce a higher combined Base Fee and Net Investment Income Incentive Fee for any quarterly period, the combined fees are set to the original (lower) level, calculated pursuant to the Investment Advisory Agreement. In the event that advisory fee calculations under the 2016 Fee Wavier produce a lower combined Base Fee and Net Investment Income Incentive Fee for that quarterly period, those lower combined fees are adopted for that quarterly period. In either case, the lower level of combined fees is used for that quarter, and, accordingly, the advisory fee payable to Oxford Square Management can only be reduced, and never increased, as a result of the 2016 Fee Waiver. 35 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 7. RELATED PARTY TRANSACTIONS (cont.) The following table represents the portion of the total advisory fee ascribed to Net Investment Income Incentive Fees (pursuant to the 2016 Fee Waiver calculation) for the three months ended March 31, 2025 and 2024, respectively. ($ in millions) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Net Investment Income Incentive Fee $ — $ — There was no Net Investment Income Incentive Fee payable to Oxford Square Management as of March 31, 2025 and December 31, 2024. Capital Gains Incentive Fee The Capital Gains Incentive Fee, which is calculated identically under the Investment Advisory Agreement and under the 2016 Fee Waiver, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20 % of the Company’s “Incentive Fee Capital Gains,” which consists of its realized capital gains for each calendar year, computed net of all realized capital losses and unrealized capital depreciation for that calendar year. For accounting purposes only, in order to reflect the theoretical Capital Gains Incentive Fee that would be payable for a given period as if all unrealized gains were realized, the Company will accrue a Capital Gains Incentive Fee based upon net realized gains and unrealized depreciation for that calendar year (in accordance with the terms of the Investment Advisory Agreement), plus unrealized appreciation on investments held at the end of the period. It should be noted that a fee so calculated and accrued would not necessarily be payable under the Investment Advisory Agreement, and may never be paid based upon the computation of Capital Gains Incentive Fees in subsequent periods. Amounts paid under the Investment Advisory Agreement will be consistent with the formula reflected in the Investment Advisory Agreement. The amount of Capital Gains Incentive Fee expense related to the hypothetical liquidation of the portfolio (and assuming no other changes in realized or unrealized gains and losses) would only become payable to Oxford Square Management in the event of a complete liquidation of the Company’s portfolio as of period end and the termination of the Investment Advisory Agreement on such date. Also, it should be noted that the Capital Gains Incentive Fee expense fluctuates with the Company’s overall investment results. There were no Capital Gains Incentive Fees based on hypothetical liquidation for the three months ended March 31, 2025 and 2024. There were no accrued Capital Gains Incentive Fees payable to Oxford Square Management as of March 31, 2025 and December 31, 2024. Administration Agreement The Company has also entered into the Administration Agreement with Oxford Funds under which Oxford Funds provides administrative services for the Company. The Company pays Oxford Funds an allocable portion of overhead and other expenses incurred by Oxford Funds on its behalf under the Administration Agreement, including a portion of the rent and the compensation of the Chief Financial Officer, accounting staff and other administrative support personnel, which creates potential conflicts of interest that the Board must monitor. The Company also reimburses Oxford Funds for the costs associated with the functions performed by the Company’s Chief Compliance Officer that Oxford Funds pays on the Company’s behalf pursuant to the terms of an agreement between the Company and ACA Group, LLC. 36 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 7. RELATED PARTY TRANSACTIONS (cont.) Oxford Square Management is controlled by Oxford Funds, its managing member. Charles M. Royce, a member of the Board, holds a minority, non -controlling interest in Oxford Square Management. Oxford Funds manages the business and internal affairs of Oxford Square Management. Jonathan H. Cohen, the Company’s Chief Executive Officer, as well as a Director, is the Chief Executive Officer of Oxford Square Management and managing member of Oxford Funds. Saul B. Rosenthal, the Company’s President and Chief Operating Officer, is also the President and Chief Operating Officer of Oxford Square Management and a member of Oxford Funds. Messrs. Cohen and Rosenthal together control the equity interests in Oxford Funds. For the three months ended March 31, 2025 and 2024, the Company incurred approximately $ 240,000 and $ 207,000 , respectively, in compensation expenses for the services of employees allocated to the administrative activities of the Company, pursuant to the Administration Agreement with Oxford Funds. In addition, the Company incurred approximately $ 14,000 and $ 16,000 for facility costs allocated under the Administration Agreement for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, approximately $ 37,000 of accrued compensation expenses was payable under the Administration Agreement. As of March 31, 2024, there were no accrued compensation expenses payable under the Administration Agreement. Co-Investment Exemptive Relief On June 14, 2017, the SEC issued an order permitting the Company and certain of its affiliates to complete negotiated co -investment transactions in portfolio companies, subject to certain conditions (the “Order”). Subject to satisfaction of certain conditions to the Order, the Company and certain of its affiliates are permitted, together with any future BDCs, registered closed -end funds and certain private funds, each of whose investment adviser is Oxford Square Management or an investment adviser controlling, controlled by, or under common control with the Oxford Square Management, to co -invest in negotiated investment opportunities where doing so would otherwise be prohibited under the 1940 Act, providing the Company’s stockholders with access to a broader array of investment opportunities. Pursuant to the Order, the Company is permitted to co -invest in such investment opportunities with its affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of its independent directors make certain conclusions in connection with a co -investment transaction, including, but not limited to, that (1) the terms of the potential co -investment transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching in respect of the Company or its stockholders on the part of any person concerned, and (2) the potential co -investment transaction is consistent with the interests of the Company’s stockholders and is consistent with the Company’s then -current investment objective and strategies. NOTE 8. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net increase/(decrease) in net assets resulting from net investment income and operations per share for the three months ended March 31, 2025 and 2024, respectively: Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Net investment income $ 6,103,874 $ 6,537,556 Weighted average common shares outstanding 69,984,752 59,639,285 Net increase in net assets resulting from net investment income per common share $ 0.09 $ 0.11 Net decrease in net assets resulting from operations $ ( 8,121,517 ) $ ( 1,768,390 ) Net decrease in net assets resulting from operations per common share $ ( 0.12 ) $ ( 0.03 ) 37 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 9. DISTRIBUTIONS The Company intends to continue to operate so as to qualify to be taxed as a RIC under the Code and, as such, the Company would not be subject to federal income tax on the portion of its taxable income and gains distributed to stockholders. To qualify to be taxed as a RIC, the Company is required, among other requirements, to distribute at least 90 % of its annual investment company taxable income, as defined by the Code. The amount to be paid out as a distribution each quarter is determined by the Board and is based upon the annual taxable income estimated by the management of the Company. Income calculated in accordance with U.S. federal income tax regulations differs substantially from GAAP income. To the extent that the Company’s cumulative undistributed taxable earnings fall below the amount of distributions declared, however, a portion of the total amount of the Company’s distributions for the fiscal year may be deemed a return of capital for tax purposes to the Company’s stockholders. The Company intends to comply with the applicable provisions of the Code pertaining to RICs to make distributions of taxable income sufficient to relieve it of substantially all federal income taxes. The Company, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4 % excise tax on such income. The Company will accrue excise tax on estimated excess taxable income, if any, as required. The Company has accrued approximately $ 604,000 of estimated excise tax payable for estimated excise tax on undistributed taxable income. This amount is included in “Accrued Expenses” on the Statements of Assets and Liabilities. The Company has adopted an “opt out” distribution reinvestment plan for its common stockholders. As a result, if the Company makes a cash distribution, then stockholders’ cash distributions will be automatically reinvested in additional shares of its common stock, unless they specifically “opt out” of the distribution reinvestment plan so as to receive cash distributions. During the three months ended March 31, 2025 and 2024, the Company issued 87,090 and 47,743 shares, respectively, of common stock for approximately $ 223,000 and $ 139,000 , respectively, to stockholders in connection with the distribution reinvestment plan. On each of January 31 and February 28, 2025, the Company paid monthly distributions of approximately $ 2.4 million, or $ 0.035 per share. On March 31, 2025, the Company paid monthly distributions of approximately $ 2.5 million, or $ 0.035 per share. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), the Company is permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre -enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre -enactment capital loss carryforwards may be more likely to expire unused. Additionally, post -enactment capital losses that are carried forward will retain their character as either short -term or long -term losses rather than being considered all short -term as under previous law. The tax character of distributions for the three months ended March 31, 2025 and 2024, represented, on an estimated basis, $ 0.105 per share from ordinary income. For the three months ended March 31, 2025 and 2024, the amounts and sources of distributions reported are only estimates (based on an average of the reported tax character historically) and are not being provided for U.S. federal income tax reporting purposes. The timing and character of distributions for U.S. federal income tax purposes (which are determined in accordance with the U.S. federal tax rules which may differ from GAAP) may be materially different than the historical information the Company used in providing the estimates herein. The ultimate tax character of distributions during 2025 and 2024 is unknown until the Company’s tax returns are filed, and the amounts represented may be materially different from the amounts disclosed in the final Form 1099 -DIV notices. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Company’s investment performance and may be subject to change based on tax regulations. NOTE 10. NET ASSET VALUE PER SHARE The Company’s net asset value per share as of March 31, 2025, and December 31, 2024, was $ 2.09 and $ 2.30 , respectively. In determining the Company’s net asset value per share, the Board determined in good faith the fair value of the Company’s portfolio investments for which reliable market quotations are not readily available. 38 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 11. SHARE ISSUANCE AND REPURCHASE PROGRAMS On August 22, 2023, the Company entered into Amendment No. 1 to the Equity Distribution Agreement dated August 1, 2019 with Ladenburg Thalmann & Co. through which the Company may offer for sale, from time to time, up to $ 150.0 million of the Company’s common stock through an At -the-Market (“ATM”) offering. On August 16, 2024, the Company entered into an amended and restated equity distribution agreement (the “Amended and Restated Equity Distribution Agreement”) with Lucid Capital Markets, LLC and Ladenburg Thalmann & Co. Inc., as the sales agents, to add Lucid Capital Markets, LLC as an additional sales agent to the Amended and Restated Equity Distribution Agreement. The Company sold a total of 1,341,138 shares of common stock pursuant to the ATM offering during the three months ended March 31, 2025. The total amount of capital raised net of underwriting fees and offering costs was approximately $ 3.5 million during the three months ended March 31, 2025. From time to time, the Board may authorize a share repurchase program under which shares are purchased in open market transactions. Since the Company is incorporated in Maryland, MGCL requires share repurchases to be accounted for as a share retirement. The cost of repurchased shares is charged against capital on the settlement date. During the three months ended March 31, 2025 and 2024, the Company was not authorized to repurchase any shares of outstanding common stock. NOTE 12. INVESTMENT INCOME The following table sets forth the components of investment income for the three months ended March 31, 2025 and 2024, respectively: Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Interest Income Stated interest income $ 3,960,281 $ 6,128,457 PIK interest income (1) 708,351 13,572 Original issue discount and market discount income 870,249 302,275 Discount income derived from unscheduled remittances at par ( 4,126 ) ( 23,257 ) Total interest income $ 5,534,755 $ 6,421,047 Income from securitization vehicles and investments $ 3,956,053 $ 3,932,374 Other income Fee letters 145,678 131,988 Money market fund income and all other fees (2) 524,564 192,015 Total other income $ 670,242 $ 324,003 Total investment income $ 10,161,050 $ 10,677,424 ____________ (1) Change in prior period was made to conform to the current period presentation. (2) For the three months ended March 31, 2025, the Company earned approximately $ 131,000 of PIK fees. The 1940 Act requires that a BDC offer significant managerial assistance to its portfolio companies. The Company may receive fee income for managerial assistance it renders to portfolio companies in connection with its investments. For the three months ended March 31, 2025 and 2024, the Company received no fee income for managerial assistance. 39 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 13. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into a variety of undertakings containing a variety of warranties and indemnifications that may expose the Company to some risk of loss. The risk of future loss arising from such undertakings, while not quantifiable, is expected to be remote. As of March 31, 2025, the Company did not have any commitments to purchase additional debt investments. The Company is not currently subject to any material legal proceedings. From time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Company’s rights under contracts with its portfolio companies. While the outcome of these legal proceedings, if any, cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon its results of operations and financial condition. NOTE 14. FINANCIAL HIGHLIGHTS Financial highlights for the three months ended March 31, 2025 and 2024, respectively, are as follows: Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Per Share Data Net asset value at beginning of period $ 2.30 $ 2.55 Net investment income (1) 0.09 0.11 Net realized and unrealized losses (2) ( 0.20 ) ( 0.13 ) Net decrease in net asset value from operations ( 0.11 ) ( 0.02 ) Distributions per share from net investment income ( 0.11 ) ( 0.11 ) Tax return of capital distributions (3) — — Total distributions ( 0.11 ) ( 0.11 ) Effect of shares issued/repurchased, gross 0.01 — Net asset value at end of period $ 2.09 $ 2.42 Per share market value at beginning of period $ 2.44 $ 2.86 Per share market value at end of period $ 2.61 $ 3.17 Total return based on market value (4) 11.39 % 14.63 % Total return based on net asset value (5) ( 4.57 )% ( 0.98 )% Shares outstanding at end of period 71,187,166 59,672,337 Ratios/Supplemental Data (8) Net assets at end of period (000’s) $ 148,882 $ 144,340 Average net assets (000’s) $ 153,493 $ 148,260 Ratio of expenses to average net assets (6) 10.57 % 11.17 % Ratio of net investment income to average net assets (6) 15.91 % 17.64 % Portfolio turnover rate (7) 6.26 % 3.09 % ____________ (1) Represents per share net investment income for the period, based upon weighted average shares outstanding. (2) Net realized and unrealized losses include rounding adjustments to reconcile change in net asset value per share. (3) Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the 40 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 14. FINANCIAL HIGHLIGHTS (cont.) Company’s stockholders. The ultimate tax character of the Company’s earnings cannot be determined until tax returns are prepared after the end of the fiscal year. The amounts and sources of distributions reported are only estimates (based on an average of the reported tax character historically) and are not being provided for U.S. tax reporting purposes. (4) Total return based on market value equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming distribution reinvestment prices obtained under the Company’s distribution reinvestment plan. Total return is not annualized. (5) Total return based on net asset value equals the increase or decrease of ending net asset value over beginning net asset value, plus distributions, divided by the beginning net asset value. Total return is not annualized. (6) Annualized. (7) Portfolio turnover rate is calculated using the lesser of the year -to-date investment sales and debt repayments or year -to-date investment purchases over the average of the total investments at fair value. (8) The following table provides supplemental performance ratios (annualized) measured for the three months ended March 31, 2025 and 2024: Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Ratio of expenses to average net assets: Operating expenses before incentive fees 10.57 % 11.17 % Net investment income incentive fees — % — % Ratio of expenses, excluding interest expense to average net assets 5.47 % 5.88 % NOTE 15. SEGMENT REPORTING The Company operates as a single operating and reporting segment and its primary business objective is to maximize its investment portfolio’s total return. The chief operating decision maker (“CODM”) is a combination of the Company’s chief executive officer and president. The CODM evaluates performance through the Company’s net asset value, net investment income and net increase/decrease in net assets resulting from operations. These performance measures also aid the CODM in providing information to the Board of Directors for the process of determining the amount of distributions to be distributed to the Company’s stockholders. The Company’s significant segment expenses are listed on the accompanying statements of operations. NOTE 16. RISKS AND UNCERTAINTIES The Company may be materially adversely affected by market conditions. Government spending, government policies, changes in interest rates, disruptions in supply chains in the United States and elsewhere and uncertainty between the United States and other countries with respect to trade policies, treaties and tariffs, in conjunction with other factors, have led and could continue to lead to inflationary economic environments that could affect the Company’s portfolio companies, financial condition and results of operations. The Company has exposure to interest rate risks to the extent prevailing interest rates change and it could negatively affect the fair value of the Company’s investments. If interest rates continue to rise in response to inflation, the value, volatility and liquidity of income paying investments could be adversely affected. Market volatility, dramatic change to interest rates and/or unfavorable economic conditions may lower performance or impair the Company’s ability to achieve its investment objective. The occurrence of any of the above events could have a significant adverse impact on the value and risk profile of the Company’s investments. 41 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 16. RISKS AND UNCERTAINTIES (cont.) Although it is difficult to predict the extent of the impact of economic disruptions on the Company’s portfolio companies and underlying CLO vehicles the Company invests in, the failure by a portfolio company or CLO vehicle to satisfy certain financial covenants, including with respect to adequate collateralization and/or interest coverage tests, could lead to a reduction in its payments to us. In the event that a CLO vehicle fails certain tests, holders of debt senior to us may be entitled to additional payments that would, in turn, reduce the payments we would otherwise be entitled to receive. A portfolio company’s failure to satisfy financial or operating covenants imposed by the Company or other lenders could lead to defaults and, potentially, termination of the portfolio company’s loans and foreclosure on its secured assets, which could trigger cross -defaults under other agreements and jeopardize the portfolio company’s ability to meet its obligations under the debt securities that the Company holds. Separately, the Company may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company, CLO vehicle or any other investment we may make. In addition, if a portfolio company goes bankrupt, even though the Company may have structured its investment as senior debt or secured debt, depending on the facts and circumstances, including the extent to which the Company actually provided significant managerial assistance, if any, to that portfolio company, a bankruptcy court might re -characterize the Company’s debt holding and subordinate all or a portion of the Company’s claim to that of other creditors. If any of these occur, it could materially and adversely affect the Company’s operating results and cash flows. The Company places its cash in an overnight money market fund and, at times, cash and cash equivalents may exceed the Federal Deposit Insurance Corporation insured limit. In addition, the Company’s portfolio may be concentrated in a limited number of portfolio companies, which will subject the Company to a risk of significant loss if any of these companies defaults on its obligations under any of its debt securities that the Company holds or if those sectors experience a market downturn. Various social and political circumstances in the United States and around the world (including wars and other forms of conflict and other uncertainties regarding actual and potential shifts in the U.S. and foreign, trade, economic and other policies with other countries, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics), may also contribute to increased market volatility and economic uncertainties or deterioration in the United States and worldwide. The conflict between Russia and Ukraine and in the Middle East, and resulting market volatility, could also adversely affect the Company’s business, operating results, and financial condition. The extent and duration or escalation of such conflicts, resulting sanctions and resulting future market disruptions are impossible to predict, but could be significant. Any disruptions resulting from such conflicts and any future conflict (including cyberattacks, espionage or the use or threatened use of nuclear weapons) or resulting from actual or threatened responses to such actions could cause disruptions to any of the Company’s portfolio companies located in Europe or the Middle East or that have substantial business relationships with companies in affected regions. It is not possible to predict the duration or extent of longer -term consequences of these conflicts, which could include further sanctions, retaliatory and escalating measures, embargoes, regional instability, geopolitical shifts and adverse effects on or involving macroeconomic conditions, the energy sector, supply chains, inflation, security conditions, currency exchange rates and financial markets around the globe. Any such market disruptions could have a material adverse effect on the Company’s business, financial condition and results of operations. These market and economic disruptions could also negatively impact the operating results of the Company’s portfolio companies. 42 Table of Contents OXFORD SQUARE CAPITAL CORP. NOTES TO FINANCIAL STATEMENTS March 31, 2025 (Unaudited) NOTE 17. SUBSEQUENT EVENTS The following distributions payable to stockholders are shown below: Date Declared Record Date Payable Date Per Share Distribution Amount Declared February 27, 2025 April 16, 2025 April 30, 2025 $ 0.035 February 27, 2025 May 16, 2025 May 30, 2025 $ 0.035 February 27, 2025 June 16, 2025 June 30, 2025 $ 0.035 April 22, 2025 July 17, 2025 July 31, 2025 $ 0.035 April 22, 2025 August 15, 2025 August 29, 2025 $ 0.035 April 22, 2025 September 16, 2025 September 30, 2025 $ 0.035 The Company’s management evaluated subsequent events through the date of issuance of these financial statements and noted no other events that necessitate adjustments to or disclosure in the financial statements. 43 Table of Contents