[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the unaudited financial statements and management's discussion and analysis for the first quarter of 2025 [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited financial statements for Q1 2025, showing a decrease in net assets to $148.9 million and NAV per share to $2.09 [Statements of Assets and Liabilities](index=4&type=section&id=Statements%20of%20Assets%20and%20Liabilities) Reports total assets of $285.5 million and net assets of $148.9 million as of March 31, 2025, with NAV per share declining to $2.09 Statements of Assets and Liabilities (Unaudited) | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Total Assets** | 285,490,638 | 299,730,974 | | **Total Liabilities** | 136,608,328 | 139,065,494 | | **Total Net Assets** | 148,882,310 | 160,665,480 | | **Net Asset Value (NAV) per Share** | 2.09 | 2.30 | [Schedule of Investments (as of March 31, 2025)](index=5&type=section&id=Schedule%20of%20Investments%20as%20of%20March%2031%2C%202025%20%28Unaudited%29) Details the investment portfolio with a fair value of $243.2 million, primarily in Senior Secured Notes (60.6%) and CLO Equity (37.5%) Portfolio Composition by Fair Value (March 31, 2025) | Investment Type | Fair Value ($) | % of Net Assets | | :--- | :--- | :--- | | Senior Secured Notes | 147,337,396 | 99.0% | | CLO Equity Investments | 91,331,433 | 61.3% | | Common Stock | 622,538 | 0.4% | | Preferred Stock | 3,890,986 | 2.6% | | **Total Investments** | **243,182,353** | **163.3%** | - The total cost of investments was **$359.6 million**, resulting in a net unrealized depreciation of **$116.4 million**[26](index=26&type=chunk) - The portfolio includes affiliated investments in UniTek Global Services, Inc. with a fair value of approximately **$3.9 million**[34](index=34&type=chunk) [Schedule of Investments (as of December 31, 2024)](index=17&type=section&id=Schedule%20of%20Investments%20as%20of%20December%2031%2C%202024) Presents the investment portfolio as of December 31, 2024, with a fair value of $260.9 million, primarily in Senior Secured Notes (57.8%) and CLO Equity (40.1%) Portfolio Composition by Fair Value (December 31, 2024) | Investment Type | Fair Value ($) | % of Net Assets | | :--- | :--- | :--- | | Senior Secured Notes | 150,686,777 | 93.8% | | CLO Equity Investments | 104,594,232 | 65.1% | | Common Stock | 957,750 | 0.6% | | Preferred Stock | 4,614,100 | 2.9% | | **Total Investments** | **260,852,859** | **162.4%** | [Statements of Operations](index=30&type=section&id=Statements%20of%20Operations) Reports total investment income of $10.2 million and a net decrease in net assets from operations of $8.1 million for Q1 2025 Operational Results (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Total Investment Income | 10,161,050 | 10,677,424 | | Total Expenses | 4,057,176 | 4,139,868 | | **Net Investment Income** | **6,103,874** | **6,537,556** | | Net Realized Losses | (12,158,495) | (8,094,940) | | Net Change in Unrealized Depreciation | (2,066,896) | (211,006) | | **Net Decrease in Net Assets from Operations** | **(8,121,517)** | **(1,768,390)** | | Net Investment Income per Share | 0.09 | 0.11 | | Net Decrease in Net Assets from Operations per Share | (0.12) | (0.03) | [Statements of Changes in Net Assets](index=31&type=section&id=Statements%20of%20Changes%20in%20Net%20Assets) Details a $11.8 million decrease in net assets for Q1 2025, ending at $148.9 million, driven by operational losses and distributions Changes in Net Assets (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net Decrease from Operations | (8,121,517) | (1,768,390) | | Distributions to Stockholders | (7,349,702) | (6,263,108) | | Net Increase 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** | [Statements of Cash Flows](index=32&type=section&id=Statements%20of%20Cash%20Flows) Shows net cash provided by operating activities of $6.0 million and a net increase in cash and cash equivalents of $2.3 million for Q1 2025 Cash Flow Summary (Three Months Ended March 31) | Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 5,987,857 | 20,293,981 | | 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** | [Notes to Financial Statements](index=33&type=section&id=Notes%20to%20Financial%20Statements%20%28Unaudited%29) Provides detailed explanations of accounting policies, investment valuation, borrowings, related party transactions, and financial highlights [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=62&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial condition and results, covering investment objectives, portfolio changes, income drivers, and liquidity [Overview](index=63&type=section&id=Overview) Outlines the company's investment objective to maximize total return through corporate debt and CLO investments as a BDC and RIC - The primary investment focus is on corporate debt securities and CLO investments to seek an attractive risk-adjusted total return[217](index=217&type=chunk) - As of March 31, 2025, the weighted average annualized yield on debt investments was approximately **14.31%**[219](index=219&type=chunk)[221](index=221&type=chunk) - The company utilizes leverage, which magnifies potential gains and losses, exposing it to increased risk[222](index=222&type=chunk) [Portfolio Composition and Investment Activity](index=66&type=section&id=Portfolio%20Composition%20and%20Investment%20Activity) Details the investment portfolio's decrease to $243.2 million, driven by sales and losses, with new acquisitions partially offsetting Portfolio Reconciliation (in millions) | | Three Months Ended March 31, 2025 ($) | | :--- | :--- | | Beginning investment portfolio | 260.9 | | Portfolio investments acquired | 16.0 | | Debt repayments | (8.7) | | Sales of securities | (10.7) | | Reductions to CLO equity cost value | (1.7) | | Net change in unrealized depreciation | (2.1) | | Net realized losses on investments | (12.2) | | **Ending investment portfolio** | **243.2** | Portfolio Composition by Asset Class (Fair Value) | Asset Class | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Senior Secured Notes | $147.3M (60.6%) | $150.7M (57.8%) | | CLO Equity | $91.3M (37.5%) | $104.6M (40.1%) | | Equity and Other Investments | $4.5M (1.9%) | $5.6M (2.1%) | | **Total** | **$243.2M (100.0%)** | **$260.9M (100.0%)** | - As of March 31, 2025, qualifying assets under the 1940 Act represented **67.1%** of total assets, below the **70.0%** requirement to acquire new non-qualifying assets[247](index=247&type=chunk) [Portfolio Grading](index=69&type=section&id=Portfolio%20Grading) Describes the debt portfolio's credit grading, with a weighted average grade of 2.2 and **81.4%** of fair value in Grade 2 Debt Portfolio Grading (by Fair Value, March 31, 2025) | Grade | Summary Description | Fair Value ($M) | % of Debt Portfolio | | :--- | :--- | :--- | :--- | | 1 | Ahead of expectations | — | —% | | 2 | Full repayment expected | 119.9 | 81.4% | | 3 | Closer monitoring required | 27.4 | 18.6% | | 4 | Loss of interest expected | — | —% | | 5 | Loss of principal expected | — | —% | | **Total** | | **147.3** | **100.0%** | [Results of Operations](index=70&type=section&id=Results%20of%20Operations) Analyzes Q1 2025 operational results, showing decreased investment income of $10.2 million and a net decrease in net assets of $8.1 million Investment Income Components (Three Months Ended March 31) | Income Source | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Total Interest Income | 5,534,755 | 6,421,047 | | Income from Securitization | 3,956,053 | 3,932,374 | | Total Other Income | 670,242 | 324,003 | | **Total Investment Income** | **10,161,050** | **10,677,424** | - As of March 31, 2025, the company had no debt investments on non-accrual status, compared to six investments on non-accrual status in the prior year[258](index=258&type=chunk) - Net realized losses for Q1 2025 were approximately **$12.2 million**. Net unrealized depreciation was **$2.1 million**, with significant depreciation in CLO investments like BlueMountain CLO XXXI and Dryden 43, partially offset by appreciation in Alvaria, Inc[271](index=271&type=chunk)[272](index=272&type=chunk) [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) Details liquidity with $37.3 million cash, $125.3 million in debt, and an asset coverage ratio of **218%** as of March 31, 2025 - Cash and cash equivalents increased to **$37.3 million** from **$34.9 million** at year-end 2024[278](index=278&type=chunk) Contractual Obligations (as of March 31, 2025) | Contractual obligations (in millions) | Principal Amount ($) | Less than 1 year ($) | 1 – 3 years ($) | 3 – 5 years ($) | | :--- | :--- | :--- | :--- | :--- | | 6.25% Unsecured Notes | 44.8 | — | 44.8 | — | | 5.50% Unsecured Notes | 80.5 | — | — | 80.5 | | **Total** | **125.3** | **—** | **44.8** | **80.5** | - The company's asset coverage ratio for borrowed amounts was **218%** as of March 31, 2025, exceeding the required **150%**[283](index=283&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=81&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses the company's primary exposure to interest rate risk and provides a sensitivity analysis on investment income Hypothetical Impact of Interest Rate Changes on Investment Income | Hypothetical Change in Base Rates | Estimated Percentage Change in Investment Income | | :--- | :--- | | Up 300 basis points | 13.5% | | Up 200 basis points | 9.0% | | Up 100 basis points | 4.5% | | Down 100 basis points | (4.5)% | | Down 200 basis points | (8.9)% | | Down 300 basis points | (13.2)% | - The company may use hedging instruments like futures and options in the future to mitigate interest rate risk, though none are currently in use[302](index=302&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the period[305](index=305&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[307](index=307&type=chunk) [PART II. OTHER INFORMATION](index=83&type=section&id=PART%20II.%20OTHER%20INFORMATION) Provides disclosures on legal proceedings, risk factors, equity sales, and other general information [Legal Proceedings](index=83&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings - As of the report date, the company is not subject to any material legal proceedings[310](index=310&type=chunk) [Risk Factors](index=83&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported for the quarter - No material changes to risk factors were reported for the three months ended March 31, 2025[311](index=311&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the issuance of 87,090 common shares valued at $223,000 through the distribution reinvestment plan in Q1 2025 - Issued **87,090** shares of common stock valued at approximately **$223,000** under the distribution reinvestment plan during Q1 2025[312](index=312&type=chunk) - No common stock was repurchased by the Company during the three months ended March 31, 2025[313](index=313&type=chunk) [Defaults Upon Senior Securities](index=83&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[314](index=314&type=chunk) [Other Information](index=83&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans during the fiscal quarter - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the quarter[316](index=316&type=chunk) [Exhibits](index=84&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the report, including CEO and CFO certifications

Group 1 - The article discusses the recent changes in the valuation of Business Development Companies (BDCs), indicating that many were previously overvalued but the situation has now shifted [1] - The investment group Trade With Beta is mentioned, which focuses on identifying mispriced preferred stocks and baby bonds, along with providing weekly reviews of over 1200 equities and IPO previews [1] - The article highlights a beneficial long position in GSBD, indicating a positive outlook on this particular stock [1] Group 2 - There is a mention of a short position on OXSQ, suggesting a bearish outlook on this specific investment [2] - The article emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [2] - It clarifies that the views expressed may not reflect those of Seeking Alpha as a whole, highlighting the diversity of opinions among analysts [2]

Oxford Square Capital Corp. Investor Presentation Quarter Ended March 31, 2025 Disclaimer "Company"). This presentation is neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Oxford Square Capital Corp. ("OXSQ" or the This presentation and the summaries contained herein do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance of ...

Financial Data and Key Metrics Changes - For the quarter ended March 31, net investment income was approximately $6.1 million or $0.09 per share, compared to approximately $6.0 million or $0.09 per share for the prior quarter [5] - Net asset value per share decreased to $2.09 from $2.30 in the prior quarter [5] - Total investment income for the first quarter was approximately $10.2 million, roughly the same as in the prior quarter [6] - Combined net unrealized and realized losses on investments were approximately $14.2 million or $0.20 per share, compared to losses of approximately $2.7 million or $0.04 per share in the prior quarter [6] Business Line Data and Key Metrics Changes - Investment activity included purchases of approximately $16 million, sales of approximately $10.7 million, and repayments of approximately $8.7 million during the quarter [6] Market Data and Key Metrics Changes - U.S. loan market performance weakened, with U.S. loan prices decreasing from 97.33% of par to 96.31% of par [8] - The twelve-month trailing default rate for loans decreased to 0.82% from 0.91% at the end of the previous quarter, but the overall default rate, including liability management exercises, remained elevated at 4.31% [9] - The distress ratio, defined as the percentage of loans with prices below 80% of par, ended the quarter at 3.21%, up from 3.02% at the end of 2024 [9] - U.S. leveraged loan primary market issuance was $141.1 billion, representing a 2% decrease compared to the same quarter in the previous year [10] - Loan fund inflows were approximately $1.94 billion for the quarter [11] Company Strategy and Development Direction - The company focuses on portfolio management strategies designed to maximize long-term total return and has historically taken a longer-term view towards its investment strategy [11] Management's Comments on Operating Environment and Future Outlook - Management noted the weakened performance in the U.S. loan market and highlighted the importance of monitoring default rates and market conditions [8][9] Other Important Information - The company distributed $0.05 per share to common stock shareholders during the quarter [6] - A total of approximately 1.3 million shares were issued in an aftermarket offering, resulting in net proceeds of approximately $3.5 million [6] - Monthly distributions of $0.35 per share were declared for July, August, and September 2025 [6] Q&A Session Summary Question: Are there any questions from participants? - There were no questions from participants during the Q&A session [14]

Financial Data and Key Metrics Changes - For Q1 2025, the company's net investment income was approximately $6.1 million or $0.09 per share, slightly up from approximately $6 million or $0.09 per share in the prior quarter [7] - The net asset value per share decreased to $2.09 from $2.30 in the prior quarter [7] - Total investment income for the first quarter was approximately $10.2 million, remaining consistent with the prior quarter [8] - The company recorded combined net unrealized and realized losses on investments of approximately $14.2 million or $0.20 per share, a significant increase from approximately $2.7 million or $0.04 per share in the prior quarter [8] Business Line Data and Key Metrics Changes - The investment activity during the quarter included purchases of approximately $16 million, sales of approximately $10.7 million, and repayments of approximately $8.7 million [9] - The company distributed $0.105 per share to common stock shareholders during the quarter [8] - A total of approximately 1.3 million shares were issued in an aftermarket offering, resulting in net proceeds of approximately $3.5 million [10] Market Data and Key Metrics Changes - The US loan market performance weakened, with US loan prices decreasing from 97.33% of par as of December 31 to 96.31% of par as of March 31 [12] - Pricing dispersion was noted, with BB rated loan prices decreasing by 82 basis points, B rated loan prices decreasing by 134 basis points, and CCC rated loan prices decreasing by 211 basis points on average [13] - The 12-month trailing default rate for the loan index decreased to 0.82% from 0.91% at the end of December, but the overall default rate, including various liability management exercises, remained elevated at 4.31% [13] - The distress ratio ended the quarter at 3.21%, up from 3.02% at the end of 2024 [13] - US leveraged loan primary market issuance was $141.1 billion, representing a 2% decrease compared to the same quarter in the previous year [14] - US loan fund inflows were approximately $1.94 billion for the quarter [14] Company Strategy and Development Direction - The company continues to focus on portfolio management strategies aimed at maximizing long-term total return, leveraging its position as a permanent capital vehicle to adopt a longer-term investment strategy [15] Management's Comments on Operating Environment and Future Outlook - Management noted the weakening performance in the US loan market and highlighted the challenges posed by pricing dispersion and elevated default rates [12][13] - The company remains committed to its investment strategy despite the current market conditions [15] Other Important Information - The Board of Directors declared monthly distributions of $0.035 per share for the months ending July, August, and September of 2025 [10] Q&A Session Summary Question: No questions were raised during the Q&A session - There were no questions from participants during the call [17]

[Financial Highlights and Distributions](index=1&type=section&id=Financial%20Highlights%20and%20Distributions) This section summarizes Oxford Square Capital Corp.'s Q1 2025 financial performance, including key results, distributions, and capital activities [Key Financial Results for Q1 2025](index=1&type=section&id=Key%20Financial%20Results%20for%20Q1%202025) For the quarter ended March 31, 2025, Oxford Square Capital Corp. reported a Net Asset Value (NAV) per share of $2.09, a decrease from $2.30 in the previous quarter. Net Investment Income (NII) remained stable at approximately $6.1 million, or $0.09 per share. The company experienced a net decrease in net assets from operations of approximately $8.1 million, driven by net realized losses of $12.2 million, which offset the NII Q1 2025 Key Financial Metrics vs. Q4 2024 | Metric | Q1 2025 (Ended Mar 31, 2025) | Q4 2024 (Ended Dec 31, 2024) | | :--- | :--- | :--- | | **NAV per Share** | $2.09 | $2.30 | | **Net Investment Income (NII)** | ~$6.1 million ($0.09/share) | ~$6.0 million ($0.09/share) | | **Total Investment Income** | ~$10.2 million | ~$10.2 million | | **Total Expenses** | ~$4.1 million | ~$4.2 million | Weighted Average Yields as of March 31, 2025 | Investment Type | Weighted Average Yield (at current cost) | | :--- | :--- | | Debt Investments | 14.3% | | CLO Equity Investments (Effective Yield) | 9.0% | | CLO Equity Investments (Cash Distribution Yield) | 16.0% | - For Q1 2025, the company recorded a net decrease in net assets from operations of approximately **$8.1 million**, which consisted of **$6.1 million** in NII, **$12.2 million** in net realized losses, and **$2.1 million** in net unrealized depreciation[1](index=1&type=chunk) - As of March 31, 2025, preferred equity investments in one portfolio company with a fair value of approximately **$3.9 million** were on non-accrual status[1](index=1&type=chunk) [Common Stock Distributions](index=1&type=section&id=Common%20Stock%20Distributions) The Board of Directors declared monthly distributions of $0.035 per share on its common stock for the months ending July, August, and September 2025 Declared Common Stock Distributions | Month Ending | Record Date | Payment Date | Amount Per Share | | :--- | :--- | :--- | :--- | | July 31, 2025 | July 17, 2025 | July 31, 2025 | $0.035 | | August 31, 2025 | August 15, 2025 | August 29, 2025 | $0.035 | | September 30, 2025 | September 16, 2025 | September 30, 2025 | $0.035 | [Investment and Capital Activity](index=1&type=section&id=Investment%20and%20Capital%20Activity) During the first quarter of 2025, the company was active in the market with approximately $16.0 million in investment purchases and a total of $19.4 million in sales and repayments. Additionally, the company issued approximately 1.3 million shares of common stock through an "at-the-market" offering, raising net proceeds of about $3.5 million - Investment activity in Q1 2025 included purchases of **~$16.0 million**, sales of **~$10.7 million**, and repayments of **~$8.7 million**[1](index=1&type=chunk) - In Q1 2025, the company issued approximately **1.3 million shares** of common stock via an "at-the-market" offering, resulting in net proceeds of approximately **$3.5 million**. As of March 31, 2025, shares outstanding were approximately **71.2 million**[2](index=2&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents Oxford Square Capital Corp.'s consolidated balance sheet and statements of operations [Statements of Assets and Liabilities](index=3&type=section&id=STATEMENTS%20OF%20ASSETS%20AND%20LIABILITIES) As of March 31, 2025, total assets were approximately $285.5 million and total liabilities were $136.6 million, resulting in total net assets of $148.9 million. This represents a decrease from December 31, 2024, when total assets were $299.7 million and net assets were $160.7 million. The net asset value per common share declined to $2.09 from $2.30 at the end of the prior quarter Balance Sheet Comparison (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments (at fair value) | $243,182 | $260,853 | | Cash and cash equivalents | $37,253 | $34,926 | | **Total Assets** | **$285,491** | **$299,731** | | Total Liabilities | $136,608 | $139,065 | | **Total Net Assets** | **$148,882** | **$160,665** | | **Net Asset Value per Share** | **$2.09** | **$2.30** | [Statements of Operations](index=4&type=section&id=STATEMENTS%20OF%20OPERATIONS) For the three months ended March 31, 2025, the company generated total investment income of approximately $10.2 million, a slight decrease from $10.7 million in the same period of 2024. After total expenses of $4.1 million, net investment income was $6.1 million. However, due to significant net realized losses of $12.2 million, the company reported a net decrease in net assets from operations of $8.1 million, compared to a $1.8 million decrease in Q1 2024 Statement of Operations Summary (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $10,161,050 | $10,677,424 | | Total Expenses | $4,057,176 | $4,139,868 | | **Net Investment Income** | **$6,103,874** | **$6,537,556** | | Net Realized Losses | ($12,158,495) | ($8,094,940) | | Net Change in Unrealized Depreciation | ($2,066,896) | ($211,006) | | **Net Decrease in Net Assets from Operations** | **($8,121,517)** | **($1,768,390)** | | NII per Share (Basic and Diluted) | $0.09 | $0.11 | [Per Share Data and Ratios](index=5&type=section&id=Per%20Share%20Data%20and%20Ratios) This section analyzes Oxford Square Capital Corp.'s per share financial performance and key operational ratios [Financial Highlights (Per Share Data)](index=5&type=section&id=FINANCIAL%20HIGHLIGHTS%20%28Unaudited%29) For the first quarter of 2025, the net asset value (NAV) per share decreased by $0.21, from $2.30 to $2.09. This was a result of $0.09 in net investment income being offset by $0.20 in net realized and unrealized losses and $0.11 in distributions. Despite the NAV decline, the market value per share increased from $2.44 to $2.61, yielding a positive total return based on market value of 11.39%. The total return based on NAV was negative 4.57% Per Share Data (Three Months Ended March 31) | Per Share Data | 2025 | 2024 | | :--- | :--- | :--- | | NAV at beginning of period | $2.30 | $2.55 | | Net investment income | $0.09 | $0.11 | | Net realized and unrealized losses | ($0.20) | ($0.13) | | Total distributions | ($0.11) | ($0.11) | | **NAV at end of period** | **$2.09** | **$2.42** | | **Total return based on Market Value** | **11.39%** | **14.63%** | | **Total return based on Net Asset Value** | **(4.57)%** | **(0.98)%** | [Ratios and Supplemental Data](index=5&type=section&id=Ratios%2FSUPPLEMENTAL%20Data) For Q1 2025, the annualized ratio of expenses to average net assets was 10.57%, an improvement from 11.17% in Q1 2024. The ratio of net investment income to average net assets was 15.91%. The portfolio turnover rate increased significantly to 6.26% for the quarter, compared to 3.09% in the prior year's quarter, indicating higher investment activity Key Ratios (Three Months Ended March 31) | Ratio/Supplemental Data | 2025 | 2024 | | :--- | :--- | :--- | | Ratio of expenses to average net assets | 10.57% | 11.17% | | Ratio of net investment income to average net assets | 15.91% | 17.64% | | Portfolio turnover rate | 6.26% | 3.09% | [Company Information and Disclosures](index=6&type=section&id=Company%20Information%20and%20Disclosures) This section outlines Oxford Square Capital Corp.'s business model and includes disclosures on forward-looking statements [About Oxford Square Capital Corp.](index=6&type=section&id=About%20Oxford%20Square%20Capital%20Corp.) Oxford Square Capital Corp. is a publicly-traded business development company (BDC). Its primary investment strategy focuses on syndicated bank loans and, to a lesser extent, debt and equity tranches of collateralized loan obligation (CLO) vehicles - The company is a **publicly-traded business development company (BDC)** that primarily invests in **syndicated bank loans** and **CLO vehicles**[12](index=12&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release includes forward-looking statements concerning future results and conditions. These statements are not guarantees of future performance and are subject to various risks and uncertainties that could cause actual results to differ materially from projections - The report contains **forward-looking statements** that are **not guarantees of future performance** and involve a number of **risks and uncertainties**[13](index=13&type=chunk)

Core Viewpoint - Oxford Square Capital Corp. reported its financial results for the quarter ended March 31, 2025, highlighting a decrease in net asset value and net losses from operations compared to the previous quarter [1]. Financial Performance - Net asset value (NAV) per share decreased to $2.09 as of March 31, 2025, down from $2.30 on December 31, 2024 [1]. - Net investment income (NII) for the quarter was approximately $6.1 million, or $0.09 per share, compared to $6.0 million, or $0.09 per share, for the previous quarter [1]. - Total investment income remained stable at approximately $10.2 million for the quarter, similar to the previous quarter [1]. - Total expenses for the quarter were approximately $4.1 million, a slight decrease from $4.2 million in the previous quarter [1]. Investment Income Breakdown - Investment income for the quarter included $5.5 million from debt investments, $4.0 million from CLO equity investments, and $0.7 million from other income [1]. - The weighted average yield of debt investments was 14.3%, down from 15.8% as of December 31, 2024 [1]. - The weighted average effective yield of CLO equity investments increased to 9.0% from 8.8% in the previous quarter [1]. - The cash distribution yield of cash income-producing CLO equity investments was 16.0%, slightly down from 16.2% [1]. Operational Metrics - The company recorded a net decrease in net assets resulting from operations of approximately $8.1 million, which included NII of $6.1 million, net realized losses of $12.2 million, and net unrealized depreciation of $2.1 million [1]. - Investment activity included purchases of approximately $16.0 million, sales of approximately $10.7 million, and repayments of approximately $8.7 million during the quarter [1]. - The weighted average credit rating was 2.2 based on total fair value, down from 2.3 as of December 31, 2024 [1]. Shareholder Distributions - The Board of Directors declared distributions of $0.035 per share for July, August, and September 2025 [1]. - The company issued approximately 1.3 million shares of common stock, resulting in net proceeds of approximately $3.5 million [1]. Assets and Liabilities - Total assets as of March 31, 2025, were approximately $285.5 million, down from $299.7 million as of December 31, 2024 [5]. - Total liabilities were approximately $136.6 million, compared to $139.1 million in the previous quarter [5]. - Net assets totaled approximately $148.9 million, down from $160.7 million [5].

Company Overview - Oxford Square Capital Corp. is a publicly-traded business development company that primarily invests in syndicated bank loans and, to a lesser extent, in debt and equity tranches of collateralized loan obligation (CLO) vehicles [2] - CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle [2] Upcoming Earnings Call - The company will hold a conference call to discuss first quarter 2025 earnings on April 25, 2025, at 9:00 AM Eastern time [1] - The toll-free dial-in number for the call is 1-800-549-8228, and the conference identification number is 26294 [1] - A recording of the call will be available for 30 days after the event, accessible by dialing 1-888-660-6264 with the replay pass-code number 26294 [1]

Investment Portfolio - As of December 31, 2024, the outstanding investment in OCP CLO 2024-37, Ltd. is approximately $27.0 million[51] - As of December 31, 2024, the outstanding investment in Dryden 43 Senior Loan Fund is approximately $47.3 million[52] - As of December 31, 2024, the outstanding investment in Carlyle Global Market Strategies CLO 2021-6, Ltd. is approximately $29.6 million[53] - As of December 31, 2024, the outstanding investment in Verifone Systems, Inc. is approximately $14.8 million[54] - As of December 31, 2024, the outstanding investment in HealthChannels, Inc. is approximately $18.6 million[55] - As of December 31, 2024, the outstanding investment in Octagon Investment Partners 49, Ltd. is approximately $26.4 million[56] - As of December 31, 2024, the outstanding investment in Convergint Technologies, LLC is approximately $11.0 million[57] - As of December 31, 2024, the outstanding investment in Dodge Data & Analytics, LLC includes approximately $2.2 million in first lien first out senior secured notes, $3.0 million in first lien second out senior secured notes, and $15.0 million in second lien senior secured notes[58] - As of December 31, 2024, the outstanding investment in Access CIG, LLC is approximately $10.1 million[59] - As of December 31, 2024, the outstanding investment in Nielsen Consumer, LLC is approximately $10.0 million[60] Income and Fees - Pre-Incentive Fee Net Investment Income for the quarter is 1.925%[77] - The Total Return Requirement is met, allowing for a Net Investment Income Incentive Fee calculation[77] - The income-related incentive fee is calculated at 0.175% based on the Pre-Incentive Fee Net Investment Income exceeding the hurdle rate[77] - Quarterly investment income, including interest and dividends, is reported at 4.00%[78] - Pre-Incentive Fee Net Investment Income after expenses is 3.425%[78] - The income-related incentive fee is calculated at 0.685% when Pre-Incentive Fee Net Investment Income exceeds both the hurdle rate and 2.1875%[79] - Capital Gains Incentive Fee is determined as 20% of realized capital gains net of losses for the year[81] - In Year 2, the Total Capital Gains Incentive Fee paid is 1.6% based on 8% realized capital gains[83] - In Year 3, the Total Capital Gains Incentive Fee paid is 2% based on 10% realized capital gains[83] Operating Expenses and Risks - The company bears all operating expenses, including advisory fees and various administrative costs[84] - The company is permitted to borrow money, allowing for potential gains or losses on investments, which increases investment risk[101] - The asset coverage requirement for senior securities was changed from 200% to 150%, allowing the company to borrow $2 for investment purposes for every $1 of investor equity[117] - The company must distribute at least 90% of its investment company taxable income to qualify as a RIC, avoiding U.S. federal income tax on ordinary income and capital gains[103] - A 4% nondeductible U.S. federal excise tax applies on certain undistributed income unless specific distribution requirements are met[105] - The company may face significant risks due to potential conflicts of interest between itself and its management team[101] - The lack of liquidity in the company's investments may adversely affect its business operations[101] - The company's common stock price may be volatile and has traded at a discount from net asset value[101] - The company may incur risks from investments in CLO vehicles, which are less transparent than direct investments in senior loans[101] Management and Compliance - The company has no employees; its day-to-day operations are managed by Oxford Square Management[102] - The company may be forced to curtail or cease new lending and investment activities if it cannot obtain additional capital due to regulatory or market constraints[101] - The company may sell its common stock below net asset value per share under specific circumstances, including rights offerings to existing stockholders[119] - As a Business Development Company (BDC), at least 70% of the company's total assets must consist of qualifying assets at the time of acquisition[120] - The company is subject to compliance examinations by the SEC under the 1940 Act, which governs its operations[120] - The company must provide significant managerial assistance to portfolio companies, except in certain controlled circumstances[123] - The company has adopted a Code of Ethics to prevent conflicts of interest and restrict certain transactions by its personnel[124] Interest Rate and Reporting - As of December 31, 2024, all but one of the company's variable rate investments were income-producing, with rates based on the five-year U.S. Treasury note, the Prime rate, or SOFR[443] - A hypothetical increase of 300 basis points in floating interest rates could lead to a 14.6% increase in net investment income[447] - The company may hedge against interest rate fluctuations using standard hedging instruments, although this may limit benefits from lower interest rates[445] - The company is required to file annual and quarterly reports with the SEC, including audited financial statements[135] - The company has implemented compliance policies and procedures to prevent violations of federal securities laws and reviews them annually[125]

Financial Performance - As of December 31, 2024, the net asset value (NAV) per share was $2.30, a decrease from $2.35 as of September 30, 2024[1] - Net investment income (NII) for the quarter ended December 31, 2024, was approximately $6.0 million, or $0.09 per share, down from $6.2 million, or $0.10 per share, for the previous quarter[1] - Total investment income for the quarter was approximately $10.2 million, slightly down from $10.3 million in the prior quarter[1] - The company recorded a net increase in net assets resulting from operations of approximately $3.3 million, which included net realized losses of approximately $44.8 million and net unrealized appreciation of approximately $42.1 million[1] - Net asset value at the end of 2024 is $2.30, down from $2.55 in 2023, reflecting a decrease of 9.80%[8] - Net investment income for 2024 is $0.42 per share, compared to $0.51 per share in 2023, a decline of 17.65%[8] - Total distributions per share decreased to $0.42 in 2024 from $0.55 in 2023, a reduction of 23.64%[8] - Total return based on market value for 2024 is (1.64)%, compared to 9.34% in 2023, indicating a significant decline[8] - Total return based on net asset value for 2024 is 6.67%, down from 11.15% in 2023, a decrease of 40.56%[8] Investment Activities - During the fourth quarter of 2024, the company made investments totaling approximately $25.1 million and received approximately $22.0 million from sales and repayments of investments[1] - The company is focused on investing in syndicated bank loans and collateralized loan obligation (CLO) vehicles, indicating a strategic emphasis on these areas[14] Shareholder Information - As of December 31, 2024, the company had approximately 69.8 million shares of common stock outstanding[2] - The company issued approximately 1.8 million shares of common stock during the quarter, resulting in net proceeds of approximately $5.0 million[2] - Shares outstanding at the end of 2024 increased to 69,758,938 from 59,300,472 in 2023, an increase of 17.73%[8] Expense Management - The total expenses for the quarter were approximately $4.2 million, consistent with the previous quarter[1] - The ratio of expenses to average net assets improved to 10.66% in 2024 from 13.84% in 2023[13] Portfolio Management - The weighted average yield of debt investments increased to 15.8% at current cost, compared to 14.5% as of September 30, 2024[1] - The portfolio turnover rate increased to 33.66% in 2024 from 3.85% in 2023, indicating a more active management strategy[8] - Average net assets for 2024 were $152,362,000, compared to $149,944,000 in 2023, an increase of 1.00%[8]