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 the Company. Such information is qualified in its entirety by reference to the more detailed discussions contained elsewhere in the Company's public filings with the Securities and Exchange Commission. Statements included herein may constitute "forward-l ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q _______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00638 _______________________________ OXFORD SQUARE CAPITAL CORP. (Exact name of registrant as specif ...

Oxford Square Capital Corp. (NASDAQ:OXSQ) Q2 2023 Earnings Conference Call August 10, 2023 9:00 AM ET Company Participants Jonathan Cohen - CEO Bruce Rubin - CFO Kevin Yonon - MD and Portfolio Manager Conference Call Participants Operator Hello everyone and welcome to the Oxford Square Capital Corp’s Second Quarter 2023 Earnings Conference Call. My name is Bruno, and I'll be your operator for today. [Operator Instructions] I will now hand over to your host and CEO, Jonathan Cohen. Please go ahead. Jonathan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q _______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00638 _______________________________ OXFORD SQUARE CAPITAL CORP. (Exact name of registrant as speci ...

Oxford Square Capital Corp. (NASDAQ:OXSQ) Q1 2023 Earnings Conference Call May 2, 2023 9:00 AM ET Company Participants Saul Rosenthal - President Bruce Rubin - Chief Financial Officer Kevin Yonon - Managing Director and Portfolio Manager Hooman Banafsheha - Principal Conference Call Participants Mickey Schleien - Ladenburg Operator Good morning or good afternoon, and welcome to the Oxford Square Capital Corp’s First Quarter 2023 Earnings Conference Call. My name is Adam, and I'll be your operator for today. ...

Investment Portfolio - As of December 31, 2022, the largest portfolio investment was in Dryden 43 Senior Loan Fund, with approximately $47.3 million outstanding[46] - Carlyle Global Market Strategies CLO 2021-6, Ltd. had approximately $29.6 million outstanding as of December 31, 2022[47] - Access CIG, LLC's investment in second lien notes amounted to approximately $16.8 million as of December 31, 2022[48] - Affinion Insurance Solutions, Inc. had approximately $15.2 million outstanding on the first lien notes as of December 31, 2022[49] - Quest Software, Inc. had investments totaling approximately $3.0 million in first lien notes and $20.0 million in second lien notes as of December 31, 2022[50] - Dodge Data & Analytics, LLC had approximately $5.0 million and $15.0 million outstanding in first and second lien notes, respectively, as of December 31, 2022[52] - OMNIA Partners, Inc. had approximately $13.8 million outstanding in second lien notes as of December 31, 2022[53] - HealthChannels, Inc. had approximately $19.0 million outstanding in first lien notes as of December 31, 2022[55] - As of December 31, 2022, the company had approximately $307.2 million in principal debt investments at variable interest rates, with all but three being income-producing[439] Fees and Income - The annual hurdle rates for 2022, 2021, and 2020 were approximately 6.26%, 5.36%, and 6.69%, respectively[65] - The Base Fee for advisory services is calculated at an annual rate of 2.00% of gross assets, adjusted for capital raises and redemptions[69] - Quarterly investment income for Hypothetical Scenario 2 was 2.50%, resulting in a Pre-Incentive Fee Net Investment Income of 1.925% after deducting a Base Fee of 0.375% and other expenses of 0.2%[72] - The incentive fee for Hypothetical Scenario 2 was calculated at 0.175%, as the Pre-Incentive Fee Net Investment Income exceeded the hurdle rate of 1.75% but was less than 2.1875%[73] - In Hypothetical Scenario 3, the quarterly investment income was 4.00%, leading to a Pre-Incentive Fee Net Investment Income of 3.425%[74] - The incentive fee for Hypothetical Scenario 3 was 0.685%, as the Pre-Incentive Fee Net Investment Income exceeded both the hurdle rate and 2.1875%[75] - The Capital Gains Incentive Fee for Year 2 was 1.6%, calculated as 20% of the total incentive fee capital gains of 8%[79] - The Capital Gains Incentive Fee for Year 3 was 2%, based on total incentive fee capital gains of 10%[79] - The Base Fee is set at an annualized rate of 1.50%, adjusted pro rata for share or debt issuances[76] - The Total Return Requirement must be met for the Net Investment Income Incentive Fee to be payable, ensuring that cumulative net increases in net assets exceed previously accrued fees[72] Operating Expenses and Management - The company bears all operating expenses, including advisory fees, overhead, and various other costs associated with investment management[80] - The Investment Advisory Agreement can be terminated by either party with 60 days' written notice, ensuring flexibility in management arrangements[84] Risks and Uncertainties - The company relies heavily on strong referral relationships with financial sponsors, and any failure to maintain these relationships could adversely affect its business[95] - The company faces uncertainty regarding the value of its portfolio investments, which may impact its net asset value[95] - A disruption in capital and credit markets could negatively affect the company's business operations[95] - The company is subject to complex corporate governance and accounting requirements that could adversely affect its financial results[95] - The company is authorized to borrow funds, which may increase the risk of investing due to potential leverage[95] - The company may face significant risks if its investment portfolio is concentrated in a limited number of companies[95] - The company operates in a highly competitive market for investment opportunities, facing competition from private equity, venture capital funds, and traditional financial services[97] - The COVID-19 pandemic has caused severe disruptions in the U.S. economy, impacting the company's financial activities[100] Debt and Interest Rates - The company expects that future debt investments will generally be made at variable rates, with many containing interest rate floors[439] - A hypothetical increase of 300 basis points in LIBOR could lead to a 17.6% increase in net investment income, while a decrease of 100 basis points could result in a 5.9% decrease[444] - 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[113] - The company is required to maintain that qualifying assets represent at least 70% of the value of total assets[116] Compliance and Governance - Control is presumed to exist when the company beneficially owns more than 25% of the outstanding voting securities of a portfolio company[117] - The company must offer significant managerial assistance to the issuers of the securities it acquires, unless certain conditions are met[118] - The company is subject to compliance with the Sarbanes-Oxley Act, which imposes various regulatory requirements on publicly-held companies[122] - The company has adopted policies to comply with NASDAQ Global Select Market's corporate governance rules[131] - The company may hedge against interest rate fluctuations using standard hedging instruments, although this may limit benefits from lower interest rates[442]

Financial Data and Key Metrics Changes - For Q4 2022, the company's net investment income was approximately $6.5 million or $0.13 per share, compared to $5.6 million or $0.11 per share in the prior quarter [6] - The net asset value per share decreased to $2.78 from $3.34 in the previous quarter [6] - Total investment income for the fourth quarter was approximately $11.9 million, up from $11.4 million in the prior quarter, driven by increased interest income from the loan portfolio [6] Business Line Data and Key Metrics Changes - The company reported net unrealized depreciation on investments of approximately $29.4 million or $0.59 per share, compared to $16.8 million or $0.34 per share in the prior quarter [7] - Realized gains on investments were approximately $100,000, an increase from $50,000 in the prior quarter [8] - Investment activity included purchases of approximately $6.1 million and sales and repayments of approximately $200,000 [9] Market Data and Key Metrics Changes - The U.S. loan market experienced volatility, with loan prices increasing from 91.92% of par to 93.06% before dropping to 92.44% by the end of December [11] - The 12-month trailing default rate for the Morningstar LSTA U.S. Leveraged Loan Index decreased to 0.72% from 0.9% at the end of September 2022 [11] - Primary market issuance was approximately $33 billion, representing a 70.8% decline compared to the same quarter in 2021 [12] Company Strategy and Development Direction - The company focuses on portfolio management strategies designed to maximize long-term total return, taking a longer-term view towards investment strategy [12] - The management is targeting companies with revenues in the hundreds of millions and EBITDA typically north of $50 million, avoiding very small companies [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that interest coverage has been maintained despite rising interest rates, with portfolio companies able to support required amortization and cash interest [18] - Concerns were raised regarding the refinancing of CLOs as many have their reinvestment periods ending, but management expects to manage this risk through selective refinancing and extensions [19] Other Important Information - The company declared monthly distributions of $0.035 per share for April, May, and June of 2023 [9] - Cash and cash equivalents stood at approximately $9 million as of December 31 [9] Q&A Session Summary Question: Size and performance of companies in the portfolio - The company targets companies with revenues in the hundreds of millions and EBITDA typically over $50 million, avoiding very small companies [17] Question: Interest coverage performance - Interest coverage has been maintained, and portfolio companies continue to generate cash to support required amortization and cash interest [18] Question: Managing CLO refinancing risks - Management expects to refinance or reset select deals and has flexibility for reinvestment post-reinvestment period [19] Question: CLO cash yield trends - The decline in CLO cash yield was primarily due to the spread between one-month and three-month rates, with expectations for improvement starting in Q1 [20] Question: CLO distributions comparison - CLO distributions were roughly flat to down slightly from October, but are expected to pick up in April [21]

Investment Portfolio - As of September 30, 2022, the fair value of the Company's investment portfolio was approximately $340.2 million[231]. - The total fair value of the investment portfolio decreased to approximately $340.2 million as of September 30, 2022, down from $420.8 million as of December 31, 2021, reflecting a net unrealized depreciation of approximately $76.5 million[250]. - The company acquired approximately $78.2 million in portfolio investments during the nine months ended September 30, 2022, which included $52.8 million in existing portfolio companies and $25.3 million in new portfolio companies[251]. - As of September 30, 2022, the company had investments in debt securities or loans to 20 portfolio companies, with a fair value of approximately $230.3 million, CLO equity investments of approximately $107.7 million, and other equity investments of approximately $2.2 million[256]. - The company's portfolio composition as of September 30, 2022, included 67.7% in Senior Secured Notes, 31.7% in CLO Equity, and 0.6% in Equity and Other Investments[259]. Debt Investments - The weighted average annualized yield on debt investments was approximately 10.41% as of September 30, 2022[225]. - Debt investments had stated interest rates ranging from 6.37% to 12.73% with maturity dates between 3 and 89 months[225]. - The total principal value of debt investments, excluding non-accrual, was approximately $272.7 million as of September 30, 2022, compared to $259.6 million as of September 30, 2021[274]. - The weighted average stated interest rate on all of the company's debt outstanding as of September 30, 2022, was 6.02% with a weighted average maturity of 3.8 years[301]. - The company experienced $49.8 million in debt repayments during the nine months ended September 30, 2022, compared to $24.3 million for the year ended December 31, 2021[255]. Financial Performance - Total investment income for the nine months ended September 30, 2022, was approximately $31.2 million, an increase of 8.9% from $27.0 million for the same period in 2021[270]. - Interest expense for the nine months ended September 30, 2022, was approximately $9.3 million, compared to $7.4 million for the same period in 2021[279]. - Net investment income for the three months ended September 30, 2022, was approximately $5.6 million, an increase from $4.0 million for the same period in 2021[290]. - The net decrease in net assets resulting from operations for the three months ended September 30, 2022, was approximately $11.1 million, contrasting with a net increase of approximately $11.3 million for the same period in 2021[292]. - The net increase in net assets resulting from net investment income per common share for the three months ended September 30, 2022, was $0.11, compared to $0.08 for the same period in 2021[291]. Risk Management - The Company is exposed to risks of leverage, which may magnify potential gains and losses[227]. - The company may utilize hedging instruments in the future to mitigate interest rate fluctuations[318]. - The company is subject to financial market risks, including changes in interest rates, which could impact its investment income[325]. - A hypothetical increase of 300 basis points in base rates would result in a 17.9% increase in net investment income, while a decrease of 100 basis points would lead to a 6.0% decrease[321]. - The FCA announced the cessation of 24 LIBOR settings after December 31, 2021, impacting the company's interest rate benchmarks[319]. Company Operations - The Company operates as a closed-end management investment company regulated as a BDC under the Investment Company Act of 1940[222]. - The investment activities are managed by Oxford Square Management, LLC, which is a registered investment adviser[223]. - The company has implemented policies to manage potential conflicts of interest arising from related party transactions[310]. - The company has a Code of Business Conduct and Ethics to manage conflicts of interest among its officers and directors[314]. - The company evaluated its disclosure controls and procedures as effective, providing reasonable assurance for timely and accurate SEC filings as of September 30, 2022[322]. Cash and Distributions - As of September 30, 2022, cash and cash equivalents were approximately $14.4 million, up from approximately $9.0 million as of December 31, 2021[295]. - For the nine months ended September 30, 2022, net cash provided by operating activities was approximately $18.8 million, reflecting significant investment purchases of approximately $78.2 million[295]. - Total distributions for the first quarter of fiscal 2023 amounted to $0.105 per share, consistent with previous quarters[306]. - The total cash distributions for the year 2021 were reported at $0.42 per share, with $0.32 classified as investment income[307]. - Distributions of $0.035 per share were declared on multiple occasions from July 2022 to March 2023[316].

Financial Data and Key Metrics Changes - For the quarter ended September 30, net investment income was approximately $5.6 million or $0.11 per share, an increase from $4.3 million or $0.09 per share in the prior quarter [6] - Net asset value per share grew to $3.34 compared to $3.67 in the prior quarter [6] - Total investment income for the third quarter was approximately $11.4 million, up from approximately $9.9 million in the prior quarter, driven by increased interest income and income from CLO equity investments [7] Business Line Data and Key Metrics Changes - The company recorded net unrealized depreciation on investments of approximately $16.8 million or $0.34 per share, a decrease from $46.2 million or $0.93 per share in the prior quarter [8] - Realized gains on investments were approximately $56,000 compared to realized losses of $1.5 million in the prior quarter [8] - Investment activity included purchases of approximately $3.9 million and sales and repayments of approximately $12.8 million, with cash and cash equivalents of approximately $14.4 million as of September 30 [9] Market Data and Key Metrics Changes - The U.S. loan market experienced volatility, with loan prices increasing from 92.16% at par as of June 30 to 95.50% at par on August 12, before dropping to 91.92% at par by September 30 [12] - The 12-month trailing default rate for the Morningstar LSTA U.S. Leveraged Loan Index increased to 0.9% by principal amount at the end of the quarter from 0.28% at the end of June 2022 [13] - The distress ratio, defined as the percentage of loans with a price below 80% of par, ended the quarter at approximately 6%, up from 3.65% at the end of June 2022 [14] Company Strategy and Development Direction - The company continues to focus on portfolio management strategies designed to maximize long-term total return, leveraging its position as a permanent capital vehicle to take a longer view towards investment strategy [15] Management's Comments on Operating Environment and Future Outlook - Management noted that primary market issuance was approximately $21 billion, representing an 87% decline compared to the same quarter in the previous year, driven by lower refinancing, M&A, and LBO activity [14] - U.S. fund outflows were approximately $11.5 billion for the quarter ended September 30, indicating a challenging market environment [15] Other Important Information - The Board of Directors declared monthly distributions of $0.035 per share for each of the months ending January, February, and March of 2023 [10] Q&A Session Summary - There were no questions from participants during the Q&A session [19][20]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q _______________________________ (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2022 COMMISSION FILE NUMBER: 814-00638 _______________________________ OXFORD SQUARE CAPITAL CORP. (Exact name of registrant as specif ...