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 SEPTEMBER 30, 2021 ☐ 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 s ...

Financial Data and Key Metrics Changes - For Q3 2021, the company's net investment income was approximately $4 million or $0.08 per share, an increase from $2.8 million or $0.06 per share in the prior quarter [6] - The net asset value per share rose to $5.03 from $4.91 in the previous quarter [6] - Total investment income for Q3 was approximately $9.8 million, up from $7.8 million in the prior quarter [7] - Net unrealized appreciation on investments was approximately $5.6 million or $0.11 per share, compared to $2.5 million or $0.05 per share in the prior quarter [7] - Realized gains on investments increased to approximately $1.7 million or $0.03 per share from $1.2 million or $0.02 per share in the prior quarter [8] - The net increase in net assets from operations was approximately $11.3 million or $0.23 per share, compared to $6.5 million or $0.13 per share in the prior quarter [9] Business Line Data and Key Metrics Changes - Investment activity included purchases of approximately $23.1 million and repayments of approximately $5.7 million during the quarter [10] - As of September 30, the company held cash and cash equivalents of approximately $19.5 million, with unsettled purchases of approximately $6.5 million [10] Market Data and Key Metrics Changes - The U.S. loan market modestly strengthened, with bond prices increasing from 98.37% of par to 98.62% of par [13] - BB rated loan prices increased by 13 basis points, B rated loan prices by 4 basis points, and CCC rated loan prices by 26 basis points on average [14] - The 12-month trailing default rate for the S&P/LSTA Leveraged Loan Index decreased to 0.35% from 1.25% at the beginning of the quarter [14] - The distress ratio was approximately 0.72%, the lowest level in nearly seven years [14] - Primary market issuance was approximately $161 billion for the quarter, bringing year-to-date issuance to approximately $485 billion [15] - U.S. loan fund inflows were approximately $5.6 billion for the quarter, totaling approximately $25.9 billion year-to-date [16] 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 [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of inflation on the economy and the loan market, noting that all loans are floating rate and expressed as LIBOR plus [21] - The company is aware of inflationary trends and considers them in investment decisions, but there is no specific solution to address inflationary impacts [22] - The current debt to equity ratio stands at 0.76, which management is comfortable with given the economic environment and the cost of leverage [25] Other Important Information - The Board of Directors declared monthly distributions of $0.035 per share for January, February, and March of 2022 [11] Q&A Session Summary Question: How should assets perform during inflation periods? - Management indicated that inflation affects various sectors differently and that all loans are floating rate, which may provide some protection, but the impact depends on how inflation manifests [21][22] Question: Why did the effective yield in the CLO equity portfolio decline while cash yields increased? - Management explained that effective yield captures total expected returns, which may vary across positions, leading to a decline despite increased cash yields [23][24] Question: What is the target leverage ratio for the fund? - The current debt to equity ratio is 0.76, which management finds comfortable given the current economic conditions [25] Question: Plans to reduce the non-qualified asset ratio? - Management stated that non-qualified assets are primarily CLO tranche positions, which will roll off over time, and they will consider opportunistic sales as appropriate [26][30]

| --- | --- | |----------------------------------|-------| | | | | Oxford Square Capital Corp. | | | Investor Presentation | | | Quarter Ended September 30, 2021 | | Disclaimer 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 "Company"). 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. Nothi ...

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, 2021 ☐ 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. | | | Investor Presentation | | | Quarter Ended June 30, 2021 | | Disclaimer 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 "Company"). 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 b ...

Oxford Square Capital Corp. (NASDAQ:OXSQ) Q2 2021 Earnings Conference Call July 27, 2021 9:00 AM ET Company Participants Jonathan Cohen – Chief Executive Officer Bruce Rubin – Chief Financial Officer Deep Maji – Senior Managing Director and Portfolio Manager Conference Call Participants Mickey Schleien – Ladenburg Operator Good day, and welcome to the Oxford Square Capital Corp. Second Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________ FORM 10-Q _______________________________ (Mark One) S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2021 £ 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 2021 Earnings Conference Call April 27, 2021 9:00 AM ET Company Participants Jonathan Cohen - CEO Bruce Rubin - CFO Kevin Yonon - MD & Portfolio Manager Debdeep Maji - Senior Managing Director & Portfolio Manager Conference Call Participants Mickey Schleien - Ladenburg Thalmann & Co. Operator Good morning, and welcome to the Oxford Square Capital First Quarter 2021 Earnings Call. [Operator Instructions]. Please note that this event is being recorded. Now I'd like ...

| --- | --- | |------------------------------|-------| | | | | Oxford Square Capital Corp. | | | Investor Presentation | | | Quarter Ended March 31, 2021 | | Disclaimer 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 "Company"). 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 ...

Portfolio Investments - As of December 31, 2020, the total fair value of the ten largest portfolio investments was $159.6 million, representing 54.2% of the total portfolio[49]. - Octagon Investment Partners 49, Ltd. had a fair value of $22.3 million, accounting for 7.6% of the total portfolio[49]. - Keystone Acquisition Corp. had a fair value of $18.5 million, representing 6.3% of the total portfolio[49]. - Sound Point CLO XVI, Ltd. had a fair value of $18.2 million, making up 6.2% of the total portfolio[49]. - The investment in Access CIG, LLC was valued at $16.5 million, which is 5.6% of the total portfolio[49]. - Premiere Global Services, Inc. had a fair value of $15.9 million, representing 5.4% of the total portfolio[49]. - The total outstanding investment across the ten largest portfolio companies included approximately $188.8 million in cost[49]. Fees and Incentives - The annual hurdle rate for 2020 was approximately 6.69%, which influenced the calculation of incentive fees[70]. - The Base Fee for advisory services is calculated at an annual rate of 2.00% of gross assets[69]. - The Capital Gains Incentive Fee is determined based on realized capital gains, net of losses, for each calendar year[67]. - The Base Fee has been reduced from 2.00% to 1.50% and is calculated on a pro-rata basis for any share or debt issuances until the funds are invested[13]. - The Net Investment Income Incentive Fee now includes a Total Return Requirement, requiring 20% of the cumulative net increase in net assets from operations over the past 12 quarters to exceed cumulative fees accrued[13]. - The hurdle rate for the Net Investment Income Incentive Fee has changed from a variable rate to a fixed rate of 7.00%[13]. - The Preferred Return Amount is calculated quarterly at 1.75% of the Company's net asset value from the previous quarter[13]. - In hypothetical scenarios, if the Pre-Incentive Fee Net Investment Income exceeds the hurdle rate, the incentive fee can range from 0% to 20% based on performance[74][79]. - The Capital Gains Incentive Fee is set at 20% of realized capital gains, net of losses, with no fees paid if there are no gains[81]. Management and Operations - The Company bears all operating expenses, including advisory fees, legal costs, and other administrative expenses, which ultimately affect stockholders[86]. - The Investment Advisory Agreement can be terminated by either party with 60 days' written notice, ensuring flexibility in management[88]. - Oxford Square Management is responsible for managing investments and providing necessary personnel for operations[90]. - The Company is entitled to indemnification for damages arising from the services rendered by Oxford Square Management, barring willful misconduct[89]. Market Conditions and Risks - The company is currently facing capital markets disruption and economic uncertainty, which may impair its ability to secure debt financing[18]. - The financial condition and results of operations are dependent on effective management of the existing portfolio and future growth[18]. - The company operates in a highly competitive market for investment opportunities, facing competition from private equity, venture capital funds, and traditional financial services companies[103]. - There is uncertainty regarding the value of portfolio investments, which may impact the net asset value[101]. - The potential for significant loss exists if concentrated investments in a limited number of portfolio companies default on their obligations[101]. - The company is dependent on key management personnel from Oxford Square Management for future success[18]. - Changes in the LIBOR calculation process may adversely affect the value of LIBOR-indexed floating-rate debt securities in the portfolio[101]. - The company may face risks related to corporate governance and public disclosure requirements that could adversely affect its financial results[101]. Regulatory Compliance - The company must distribute at least 90% of its investment company taxable income to qualify for RIC tax treatment, which affects its cash flow management[105]. - The company may incur a 4% nondeductible U.S. federal excise tax on certain undistributed income if it fails to meet distribution requirements[107]. - As of December 31, 2020, the company had approximately $208.5 million in principal debt investments at variable interest rates, with all but two being income-producing[431]. - The company expects future debt investments to generally be made at variable rates, with many containing interest rate floors[431]. - A hypothetical increase of 300 basis points in LIBOR would result in a 15.8% increase in net investment income, while a decrease of 25 basis points would lead to a 0.6% decrease[435]. - 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[118]. - The company is required to maintain that at least 70% of its total assets consist of qualifying assets, which include securities from eligible portfolio companies[120]. - The company must adhere to certain regulatory requirements, including having a majority of directors who are not interested persons[117]. - The Sarbanes-Oxley Act requires the company to certify the accuracy of its financial statements and assess internal controls over financial reporting[126]. - The company may hedge against interest rate fluctuations using standard hedging instruments, although this may limit benefits from lower interest rates[432]. - The company is subject to examination by the SEC for compliance with the 1940 Act[119]. - The company has adopted policies to comply with NASDAQ Global Select Market's corporate governance rules and will monitor compliance with future listing standards[136].