Document




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________
FORM 10-Q
____________________________
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED March 31, 2022
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 814-00852
__________________________
SuRo Capital Corp.
(Exact name of registrant as specified in its charter)
____________________________
Maryland27-4443543
(State of incorporation)(I.R.S. Employer Identification No.)
640 Fifth Avenue, 12th Floor, New York, NY10019
(Address of principal executive offices)(Zip Code)
(212) 931-6331
(Registrant’s telephone number, including area code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $0.01 per shareSSSS
Nasdaq Global Select Market
6.00% Notes due 2026SSSSLNasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods as the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ¨ NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer o
Accelerated filer o
Non-accelerated filer x (Do not check if a smaller reporting company)
Smaller reporting company o
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES ¨ NO x

The issuer had 30,724,976 shares of common stock, $0.01 par value per share, outstanding as of May 4, 2022.



TABLE OF CONTENTS


SURO CAPITAL CORP.

TABLE OF CONTENTS

PAGE
PART I. FINANCIAL INFORMATION
PART II. OTHER INFORMATION

i

TABLE OF CONTENTS

PART I

Item 1.     Financial Statements and Supplementary Data

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, 2022December 31, 2021
ASSETS
Investments at fair value:
Non-controlled/non-affiliate investments (cost of $145,417,242 and $146,360,300, respectively)$252,569,218 $231,768,290 
Non-controlled/affiliate investments (cost of $41,211,183 and $41,211,183, respectively)14,319,986 14,609,089 
Controlled investments (cost of $19,883,894 and $19,883,894, respectively)13,888,874 13,758,874 
Total Investments (cost of $206,512,319 and $207,455,377, respectively)280,778,078 260,136,253 
Cash172,839,141 198,437,078 
Proceeds receivable— 52,493 
Escrow proceeds receivable4,577,518 2,046,645 
Interest and dividends receivable87,815 83,655 
Deferred financing costs606,607 621,719 
Prepaid expenses and other assets(1)
790,211 937,984 
Total Assets459,679,370 462,315,827 
LIABILITIES
Accounts payable and accrued expenses(1)
1,649,388 875,047 
Accrued interest payable— 175,000 
Dividends payable3,751,013 23,390,048 
Payable for securities purchased460,048 — 
6.00% Notes due December 30, 2026(2)
73,117,394 73,029,108 
Total Liabilities78,977,843 97,469,203 
Commitments and contingencies (Notes 7 and 10)
Net Assets$380,701,527 $364,846,624 
NET ASSETS
Common stock, par value $0.01 per share (100,000,000 authorized; 31,164,443 and 31,118,556 issued and outstanding, respectively)$311,644 $311,185 
Paid-in capital in excess of par348,919,222 350,079,409 
Accumulated net investment loss(54,349,302)(50,124,597)
Accumulated net realized gain on investments, net of distributions11,554,193 11,899,742 
Accumulated net unrealized appreciation of investments74,265,770 52,680,885 
Net Assets$380,701,527 $364,846,624 
Net Asset Value Per Share$12.22 $11.72 
See accompanying notes to condensed consolidated financial statements.
__________________________________________________
(1)    This balance includes a right of use asset and corresponding operating lease liability, respectively. Refer to "Note 7—Commitments and Contingencies—Operating Leases and Related Deposits" for more detail.
(2)    As of March 31, 2022, the 6.00% Notes due December 30, 2026 (effective interest rate of 6.53%) had a face value $75,000,000. As of December 31, 2021, the 6.00% Notes due December 30, 2026 (effective interest rate of 6.13%) had a face value $75,000,000. Refer to “Note 10—Debt Capital Activities” for a reconciliation of the carrying value to the face value.
1

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended March 31,
20222021
INVESTMENT INCOME
Non-controlled/non-affiliate investments:
Interest income$162,455 $166,845 
Dividend income130,645 21,875 
Non-controlled/affiliate investments:
Dividend income— 102,632 
Controlled investments:
Interest income290,000 — 
Total Investment Income583,100 291,352 
OPERATING EXPENSES
Compensation expense1,860,702 1,293,310 
Directors’ fees160,565 111,250 
Professional fees1,272,713 973,159 
Interest expense1,200,786 504,793 
Income tax expense2,050 2,025 
Other expenses310,989 241,133 
Total Operating Expenses4,807,805 3,125,670 
Net Investment Loss(4,224,705)(2,834,318)
Realized Gain on Investments:
Non-controlled/non-affiliated investments3,096,275 112,152,518 
Net Realized Gain on Investments3,096,275 112,152,518 
Change in Unrealized Appreciation/(Depreciation) of Investments:
Non-controlled/non-affiliated investments21,743,987 (3,265,307)
Non-controlled/affiliate investments(289,102)1,844,470 
Controlled investments130,000 105,000 
Net Change in Unrealized Appreciation/(Depreciation) of Investments21,584,885 (1,315,837)
  Net Change in Net Assets Resulting from Operations$20,456,455 $108,002,363 
   Net Change in Net Assets Resulting from Operations per Common Share:
Basic$0.66 $5.27 
Diluted(1)
$0.66 $4.50 
Weighted-Average Common Shares Outstanding
Basic31,228,046 20,486,621 
Diluted(1)
31,228,046 24,123,339 
See accompanying notes to condensed consolidated financial statements.

____________________________________________________________________________________________________________________________


(1)    As of March 31, 2022, there were no potentially dilutive securities outstanding.
2

TABLE OF CONTENTS

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)


Three Months Ended March 31,
20222021
Net Assets at Beginning of Year$364,846,624 $301,583,073 
Change in Net Assets Resulting from Operations
Net investment loss$(4,224,705)$(2,834,318)
Net realized gain on investments3,096,275 112,152,518 
Net change in unrealized appreciation/(depreciation) of investments21,584,885 (1,315,837)
Net Change in Net Assets Resulting from Operations20,456,455 108,002,363 
Distributions
Dividends declared(3,441,824)(11,032,436)
Total Distributions$(3,441,824)$(11,032,436)
Change in Net Assets Resulting from Capital Transactions
Issuance of common stock from public offering229,896 — 
Issuance of common stock from conversion of 4.75% Convertible Notes due 2023— 37,259,819 
Stock-based compensation(30,016)148,802 
Repurchases of common stock(1,359,607)— 
Net Change in Net Assets Resulting from Capital Transactions(1,159,727)37,408,621 
Total Change in Net Assets15,854,904 134,378,548 
Net Assets at March 31$380,701,528 $435,961,621 
Capital Share Activity
Shares outstanding at beginning of year31,118,556 19,914,023 
Issuance of common stock from public offering17,807 — 
Issuance of common stock under restricted stock plan181,597 193,385 
Issuance of common stock from conversion of 4.75% Convertible Notes due 2023— 4,097,808 
Shares repurchased(153,517)— 
Shares Outstanding at End of Period31,164,443 24,205,216 

See accompanying notes to condensed consolidated financial statements.


3

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,
20222021
Cash Flows from Operating Activities
Net change in net assets resulting from operations$20,456,455 $108,002,363 
Adjustments to reconcile net change in net assets resulting from operations to net cash provided by/(used in) operating activities:
Net realized gain on investments(3,096,275)(112,152,518)
Net change in unrealized (appreciation)/depreciation of investments(21,584,885)1,315,837 
Amortization of discount on 4.75% Convertible Senior Notes due 2023— 76,925 
Amortization of discount on 6.00% Notes due 2026104,940 — 
Stock-based compensation(30,016)148,802 
Adjustments to escrow proceeds receivable2,751,610 (144)
Forfeited interest on 4.75% Convertible Senior Notes due 2023— 102,911 
Purchases of investments in:
Portfolio investments— (9,503,636)
Proceeds from sales or maturity of investments in:
Portfolio investments1,287,722 125,277,788 
U.S. Treasury bills— 150,000,000 
Change in operating assets and liabilities:
Prepaid expenses and other assets147,773 82,593 
Interest and dividends receivable(4,160)93,592 
Proceeds receivable52,493 — 
Escrow proceeds receivable(2,530,873)155 
Payable for securities purchased460,048 (134,250,000)
Accounts payable and accrued expenses774,341 854,267 
Income tax payable— (35,850)
Accrued interest payable(175,000)(453,803)
Net Cash Provided by/(Used in) Operating Activities(1,385,827)129,559,282 
Cash Flows from Financing Activities
Proceeds from the issuance of common stock, net229,896 — 
Redemption of 4.75% Convertible Senior Notes due 2023— (290,000)
Repurchases of common stock(1,359,607)— 
Cash dividends paid(23,080,859)(9,349,364)
Cash paid for fractional shares— (100)
Deferred financing costs(1,540)(13,977)
Net Cash Used in Financing Activities(24,212,110)(9,653,441)
Total Increase/(Decrease) in Cash Balance(25,597,937)119,905,841 
Cash Balance at Beginning of Year198,437,078 45,793,724 
Cash Balance at End of Period$172,839,141 $165,699,565 
Supplemental Information:20222021
Interest paid$1,287,500 $794,206 
Taxes paid2,050 37,875 
Conversion of 4.75% Convertible Senior Notes due 2023— 37,925,000 
See accompanying notes to condensed consolidated financial statements.


4

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2022
Portfolio Investments*Headquarters/
Industry
Date of Initial InvestmentShares/
Principal
CostFair Value% of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
Course Hero, Inc.Redwood City, CA
Preferred shares, Series A 8%Online Education9/18/20142,145,509 $5,000,001 $66,801,229 17.55 %
Preferred shares, Series C 8%11/5/2021275,659 9,999,971 9,999,971 2.63 %
Total14,999,972 76,801,200 20.17 %
Forge Global Holdings, Inc.**
San Francisco, CA
Common shares(3)
Online Marketplace Finance7/20/20112,454,791 2,526,223 62,376,239 16.38 %
Common warrants, Strike Price $3.98, Expiration Date 11/9/2025(3)(17)
7/19/2011230,144 — 368,474 0.10 %
Total2,526,223 62,744,713 16.48 %
Blink Health, Inc.New York, NY
Preferred shares, Series APharmaceutical Technology10/27/2020238,095 5,000,423 3,797,566 1.00 %
Preferred shares, Series C10/27/2020261,944 10,003,917 9,999,974 2.63 %
Total15,004,340 13,797,540 3.62 %
Aspiration Partners, Inc.Marina Del Rey, CA
Preferred shares, Series AFinancial Services8/11/2015540,270 1,001,815 11,002,528 2.89 %
Preferred shares, Series C-38/12/201924,912 281,190 507,330 0.13 %
Total1,283,005 11,509,858 3.02 %
Orchard Technologies, Inc.New York, NY
Preferred shares, Series DReal Estate Platform8/9/20211,488,139 10,004,034 9,999,996 2.63 %
Nextdoor Holdings, Inc.**
San Francisco, CA
Common shares, Class B(3)
Social Networking9/27/20181,802,416 10,002,666 9,986,736 2.62 %
Trax Ltd.**
Singapore, Singapore
Common sharesRetail Technology6/9/202155,591 2,781,148 2,437,699 0.64 %
Preferred shares, Investec series6/9/2021144,409 7,224,600 6,332,422 1.66 %
Total10,005,748 8,770,121 2.30 %
Varo Money, Inc.San Francisco, CA
Common sharesFinancial Services8/11/20211,079,266 10,005,548 8,247,919 2.17 %
Shogun Enterprises, Inc.Austin, TX
Preferred shares, Series B-1Home Improvement Finance2/26/2021436,844 3,501,657 3,499,994 0.92 %
Preferred shares, Series B-22/26/2021301,750 3,501,661 3,499,998 0.92 %
Total7,003,318 6,999,992 1.84 %
NewLake Capital Partners, Inc. (f/k/a GreenAcreage Real Estate Corp.)**
New York, NY
Common shares***(3)(14)
Cannabis REIT8/12/2019251,119 5,106,094 6,277,975 1.65 %
Skillsoft Corp.**
Nashua, NH
Common shares(3)
Online Education6/8/2021981,843 9,818,430 5,930,332 1.56 %
Rover Group, Inc.**
Seattle, WA
Common shares(3)
Peer-to-Peer Pet Services11/3/2014795,637 2,360,342 4,590,825 1.21 %
Neutron Holdings, Inc. (d/b/a/ Lime)San Francisco, CA
Junior Preferred shares, Series 1-DMicromobility1/25/201941,237,113 10,007,322 3,485,014 0.92 %
Junior Preferred Convertible Note 4% Due 5/11/2027***5/11/2020$506,339 506,339 506,339 0.13 %
Common Warrants, Strike Price $0.01, Expiration Date 5/11/20275/11/20202,032,967 — — — %
Total10,513,661 3,991,353 1.05 %
Enjoy Technology, Inc.**
Menlo Park, CA
Common shares(3)
On-Demand Commerce10/16/20141,070,919 5,526,777 3,947,407 1.04 %
See accompanying notes to condensed consolidated financial statements.
5

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2022
Portfolio Investments*Headquarters/
Industry
Date of Initial InvestmentShares/
Principal
CostFair Value% of Net
Assets
True Global Ventures 4 Plus Pte Ltd**(8)
Singapore, Singapore
Limited Partner Fund InvestmentVenture Investment Fund8/27/2021$713,505 $3,937,828 1.03 %
Residential Homes for Rent, LLC (d/b/a Second Avenue)Chicago, IL
Preferred shares, Series A(6)
Real Estate Platform12/23/2020150,000 1,500,000 2,081,673 0.55 %
Term loan 15%, Due 12/23/2023***(13)
12/23/2020$1,750,000 1,750,000 1,750,000 0.46 %
Total3,250,000 3,831,673 1.01 %
PayJoy, Inc.San Francisco, CA
Preferred sharesMobile Access Technology7/23/2021244,117 2,501,570 2,500,002 0.66 %
Aventine Property Group, Inc.(12)
Chicago, IL
Common shares***Cannabis REIT9/11/2019312,500 2,580,750 2,228,187 0.59 %
Rent the Runway, Inc.**
New York, NY
Common shares(3)
Subscription Fashion Rental6/17/2020339,191 5,153,945 2,196,804 0.58 %
Commercial Streaming Solutions Inc. (d/b/a BettorView)(7)
Las Vegas, NV
Simple Agreement for Future EquityInteractive Media & Services3/26/20211,002,720 1,000,000 0.26 %
Rebric, Inc. (d/b/a Compliable)(7)
Denver, CO
Preferred shares, Series Seed-4Gaming Licensing10/12/20212,064,409 1,002,755 1,000,000 0.26 %
Palantir Lending Trust SPV I **(11)
Palo Alto, CA
Equity Participation in Underlying Collateral(3)
Data Analysis6/19/2020— — 741,553 0.19 %
YouBet Technology, Inc. (d/b/a PickUp)(7)
New York, NY
Preferred shares, Series Seed-2Digital Media Technology8/26/2021385,353 502,232 499,999 0.13 %
Churchill Sponsor VII LLC**(15)
New York, NY
Common share unitsSpecial Purpose Acquisition Company2/25/2021292,100 205,820 205,820 0.05 %
Warrant units2/25/2021277,000 94,180 94,180 0.02 %
Total300,000 300,000 0.08 %
Kahoot! ASA**
Oslo, Norway
Common shares(3)
Education Software12/5/201499,672 458,138 287,205 0.08 %
AltC Sponsor LLC**(15)
New York, NY
Share unitsSpecial Purpose Acquisition Company7/21/2021239,300 250,855 250,000 0.07 %
Churchill Sponsor VI LLC**(15)
New York, NY
Common share unitsSpecial Purpose Acquisition Company2/25/2021195,000 134,297 134,297 0.04 %
Warrant units2/25/2021199,100 65,703 65,703 0.02 %
   Total200,000 200,000 0.05 %
Fullbridge, Inc.Cambridge, MA
Common sharesBusiness Education5/13/2012517,917 6,150,506 — — %
Promissory Note 1.47%, Due 11/9/2021(4)(16)
3/3/2016$2,270,458 2,270,858 — — %
Total8,421,364 — — %
Treehouse Real Estate Investment Trust, Inc.(12)
Chicago, IL
Common shares***Cannabis REIT9/11/2019312,500 4,919,250 — — %
Kinetiq Holdings, LLCPhiladelphia, PA
Common shares, Class ASocial Data Platform3/30/2012112,374 — — — %
Total Non-controlled/Non-affiliate$145,417,242 $252,569,218 66.34 %
See accompanying notes to condensed consolidated financial statements.
6

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2022
Portfolio Investments*Headquarters/
Industry
Date of Initial InvestmentShares/
Principal
CostFair Value% of Net
Assets
NON-CONTROLLED/AFFILIATE(1)
StormWind, LLC(5)
Scottsdale, AZ
Preferred shares, Series D 8%Interactive Learning11/26/2019329,337 $257,267 $603,850 0.16 %
Preferred shares, Series C 8%1/7/20142,779,134 4,000,787 6,335,118 1.66 %
Preferred shares, Series B 8%12/16/20113,279,629 2,019,687 4,251,900 1.12 %
Preferred shares, Series A 8%2/25/2014366,666 110,000 270,096 0.07 %
Total6,387,741 11,460,964 3.01 %
OneValley, Inc. (f/k/a NestGSV, Inc.)San Mateo, CA
Derivative Security, Expiration Date 8/23/2024(10)
Global Innovation Platform8/23/20198,555,124 2,348,923 0.62 %
Convertible Promissory Note 8% Due 8/23/2024(4)(10)
2/17/2016$1,010,198 1,030,176 505,099 0.13 %
Preferred Warrant Series B, Strike Price $2.31, Expiration Date 5/29/20225/29/2017125,000 70,379 — — %
Preferred Warrant Series B, Strike Price $2.31, Expiration Date 12/31/202312/31/2018250,000 5,080 5,000 0.00 %
Total9,660,759 2,859,022 0.75 %
Ozy Media, Inc.Mountain View, CA
Preferred shares, Series C-2 6%Digital Media Platform8/31/2016683,482 2,414,178 — — %
Common Warrants, Strike Price $0.01, Expiration Date 4/9/20284/9/2018295,565 30,647 — — %
Preferred shares, Series B 6%10/3/2014922,509 4,999,999 — — %
Preferred shares, Series A 6%12/11/20131,090,909 3,000,200 — — %
Preferred shares, Series Seed 6%11/2/2012500,000 500,000 — — %
Total10,945,024 — — %
Maven Research, Inc.San Francisco, CA
Preferred shares, Series C 8%Knowledge Networks7/2/2012318,979 2,000,447 — — %
Preferred shares, Series B 5%2/28/201249,505 217,206 — — %
Total2,217,653 — — %
Curious.com, Inc.Menlo Park, CA
Common sharesOnline Education11/22/20131,135,944 12,000,006 — — %
Total Non-controlled/Affiliate$41,211,183 $14,319,986 3.76 %
CONTROLLED(2)
Architect Capital PayJoy SPV, LLC**
San Francisco, CA
Membership Interest in Lending SPV***Mobile Finance Technology3/24/2021$10,000,000 $10,006,745 $10,000,000 2.63 %
Colombier Sponsor LLC**(15)
New York, NY
Class B UnitsSpecial Purpose Acquisition Company4/1/20211,976,033 1,556,587 1,554,354 0.41 %
Class W Units4/1/20212,700,000 1,159,150 1,157,487 0.30 %
Total2,715,737 2,711,841 0.71 %
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)Cupertino, CA
Preferred shares, Class A(9)
Clean Technology4/15/201414,300,000 7,151,412 1,177,033 0.31 %
Common shares4/15/2014100,000 10,000 — — %
Total7,161,412 1,177,033 0.31 %
Total Controlled$19,883,894 $13,888,874 3.65 %
Total Portfolio Investments$206,512,319 $280,778,078 73.75 %

See accompanying notes to condensed consolidated financial statements.
7

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2022

__________________________________________
*    All portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise identified. Equity investments are subject to lock-up restrictions upon their initial public offering (“IPO”). Preferred dividends are generally only payable when declared and paid by the portfolio company's board of directors. The Company’s directors, officers, employees and staff, as applicable, may serve on the board of directors of the Company’s portfolio investments. (Refer to “Note 3—Related-Party Arrangements”). All portfolio investments are considered Level 3 and valued using significant unobservable inputs, unless otherwise noted. (Refer to “Note 4—Investments at Fair Value”). All of the Company's portfolio investments are restricted as to resale, unless otherwise noted, and were valued at fair value as determined in good faith by the Company’s Board of Directors. (Refer to "Note 2—Significant Accounting Policies—Investments at Fair Value").
**    Indicates assets that SuRo Capital Corp. believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Of the Company’s total investments as of March 31, 2022, 43.76% of its total investments are non-qualifying assets.
***    Investment is income-producing.

(1)“Affiliate Investments” are investments in those companies that are “Affiliated Companies” of SuRo Capital Corp., as defined in the 1940 Act. In general, a company is deemed to be an “Affiliate” of SuRo Capital Corp. if SuRo Capital Corp. owns 5% or more of the voting securities (i.e., securities with the right to elect directors) of such company. For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 4—Investments at Fair Value”.

(2)“Control Investments” are investments in those companies that are “Controlled Companies” of SuRo Capital Corp., as defined in the 1940 Act. In general, under the 1940 Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities (i.e., securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 4—Investments at Fair Value”.

(3)Denotes an investment considered Level 1 or Level 2 and valued using observable inputs. Refer to “Note 4—Investments at Fair Value”.

(4)As of March 31, 2022, the investments noted had been placed on non-accrual status.

(5)SuRo Capital Corp.’s investments in StormWind, LLC are held through SuRo Capital Corp.'s wholly owned subsidiary, GSVC SW Holdings, Inc.

(6)SuRo Capital Corp.’s investments in preferred shares in Residential Homes for Rent, LLC (d/b/a Second Avenue) are held through SuRo Capital Corp.'s wholly owned subsidiary, GSVC AV Holdings, Inc.

(7)SuRo Capital Corp.’s investments in Commercial Streaming Solutions Inc. (d/b/a BettorView), YouBet Technology, Inc. (d/b/a PickUp), and Rebric Inc. (d/b/a Compliable) are held through SuRo Capital Corp.'s wholly owned subsidiary, SuRo Capital Sports, LLC ("SuRo Sports").

(8)SuRo Capital Corp.’s investments in True Global Ventures 4 Plus Pte Ltd are held through SuRo Capital Corp.'s wholly owned subsidiary, GSVC SVDS Holdings, Inc. As of March 31, 2022, $0.7 million of a $2.0 million capital commitment to True Global Ventures 4 Plus Fund LP had been called and funded.

(9)The SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) preferred shares held by SuRo Capital Corp. do not entitle SuRo Capital Corp. to a preferred dividend. SuRo Capital Corp. does not anticipate that SPBRX, INC. will pay distributions on a quarterly or regular basis or become a predictable distributor of distributions.

(10)On August 23, 2019, SuRo Capital Corp. amended the structure of its investment in OneValley, Inc. (f/k/a NestGSV, Inc.). As part of the agreement, SuRo Capital Corp.’s equity holdings (warrants notwithstanding) were restructured into a derivative security. OneValley, Inc. (f/k/a NestGSV, Inc.) has the right to call the position at any time over a five year period, while SuRo Capital Corp. can put the shares to OneValley, Inc. (f/k/a NestGSV, Inc.) at the end of the five year period.

(11)As of March 31, 2022, 512,290 Class A common shares remain in Palantir Lending Trust SPV I, none of which are subject to lock-up restrictions.

(12)On January 1, 2021, Treehouse Real Estate Investment Trust, Inc. completed its spin off of 34.4% of its assets into Aventine Property Group, Inc. During the three months ended March 31, 2022, Aventine Property Group, Inc. declared an aggregate of less than $0.1 million in dividend distributions. During the three months ended March 31, 2022, Treehouse Real Estate Investment Trust, Inc. declared an aggregate of less than $0.1 million in dividend distributions.

(13)During the three months ended March 31, 2022, approximately $0.3 million has been received from Residential Homes for Rent, LLC (d/b/a Second Avenue) related to the 15% term loan due December 23, 2023. Of the proceeds received, approximately $0.2 million repaid a portion of the outstanding principal and the remaining was attributed to interest.
8

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)- continued
March 31, 2022

(14)During the three months ended March 31, 2022, NewLake Capital Partners, Inc. (f/k/a GreenAcreage Real Estate Corp.) declared an aggregate of approximately $0.1 million in dividend distributions.

(15)Denotes an investment that is the sponsor of a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

(16)As of March 31, 2022, Fullbridge, Inc.'s obligations under its financing arrangements with the Company became past due.

(17)On March 22, 2022, Forge Global Holdings, Inc., completed its business combination with Motive Capital Corp. As a result of the transaction, each share of Forge Global, Inc.'s capital stock outstanding prior to the business combination was exchanged at the designated exchange ratio of approximately 3.123. In addition, each warrant of Forge Global, Inc. was exchanged into warrants exercisable into common stock based on the exchange ratio of 3.123. The exercise price of each converted warrant was determined by dividing the exercise price of the respective Forge warrants by the exchange ratio, rounded to the nearest whole cent.
9

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2021
Portfolio Investments*Headquarters/
Industry
Date of Initial InvestmentShares/
Principal
CostFair Value% of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
Course Hero, Inc.Redwood City, CA
Preferred shares, Series A 8%Online Education9/18/20142,145,509 $5,000,001 $77,831,772 21.33 %
Preferred shares, Series C 8%11/5/2021275,659 9,999,971 9,999,971 2.74 %
Total14,999,972 87,831,743 24.07 %
Forge Global, Inc.San Francisco, CA
Common shares, Class AAOnline Marketplace Finance7/20/2011625,520 266,507 16,430,555 4.50 %
Junior Preferred shares7/19/2011160,534 2,259,716 4,216,752 1.16 %
Junior Preferred warrants, Strike Price $12.42, Expiration Date 11/9/20257/19/201173,695 — 368,474 0.10 %
Total2,526,223 21,015,781 5.76 %
Blink Health, Inc.New York, NY
Preferred shares, Series APharmaceutical Technology10/27/2020238,095 5,000,423 4,315,552 1.18 %
Preferred shares, Series C10/27/2020261,944 10,003,917 9,999,974 2.74 %
Total15,004,340 14,315,526 3.92 %
Nextdoor Holdings, Inc.**
San Francisco, CA
Common shares(3)
Social Networking9/27/20181,801,850 10,002,666 12,439,522 3.41 %
Aspiration Partners, Inc.Marina Del Rey, CA
Preferred shares, Series AFinancial Services8/11/2015540,270 1,001,815 10,556,306 2.89 %
Preferred shares, Series C-38/12/201924,912 281,190 499,437 0.14 %
Total1,283,005 11,055,743 3.03 %
Trax Ltd.**
Singapore, Singapore
Common sharesRetail Technology6/9/202155,591 2,781,148 2,882,476 0.79 %
Preferred shares, Investec series6/9/2021144,409 7,224,600 7,487,823 2.05 %
Total10,005,748 10,370,299 2.84 %
Orchard Technologies, Inc.New York, NY
Preferred shares, Series DReal Estate Platform8/9/20211,488,139 10,004,034 9,999,996 2.74 %
Skillsoft Corp.**(18)
Nashua, NH
Common shares(3)
Online Education6/8/2021981,843 9,818,430 8,983,863 2.46 %
Varo Money, Inc.San Francisco, CA
Common sharesFinancial Services8/11/20211,079,266 10,005,548 8,541,676 2.34 %
NewLake Capital Partners, Inc. (f/k/a GreenAcreage Real Estate Corp.)**
New York, NY
Common shares***(3)(16)
Cannabis REIT8/12/2019278,471 5,653,375 7,986,548 2.19 %
Rover Group, Inc.**(13)
Seattle, WA
Common shares(3)
Peer-to-Peer Pet Services11/3/2014838,381 2,506,119 7,765,504 2.13 %
Shogun Enterprises, Inc.Austin, TX
Preferred shares, Series B-1Home Improvement Finance2/26/2021436,844 3,501,657 3,531,447 0.97 %
Preferred shares, Series B-22/26/2021301,750 3,501,661 3,499,998 0.96 %
Total7,003,318 7,031,445 1.93 %
Enjoy Technology, Inc.**
Menlo Park, CA
Common shares(3)
On-Demand Commerce10/16/20141,070,919 5,526,777 4,576,572 1.25 %
Neutron Holdings, Inc. (d/b/a/ Lime)San Francisco, CA
Junior Preferred shares, Series 1-DMicromobility1/25/201941,237,113 10,007,322 3,485,014 0.96 %
Junior Preferred Convertible Note 4% Due 5/11/2027***5/11/2020$506,339 506,339 506,339 0.14 %
Common Warrants, Strike Price $0.01, Expiration Date 5/11/20275/11/20202,032,967 — — — %
Total10,513,661 3,991,353 1.10 %
See accompanying notes to condensed consolidated financial statements.
10

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS - continued
December 31, 2021
Portfolio Investments*Headquarters/
Industry
Date of Initial InvestmentShares/
Principal
CostFair Value% of Net
Assets
Residential Homes for Rent, LLC (d/b/a Second Avenue)Chicago, IL
Preferred shares, Series A(6)
Real Estate Platform12/23/2020150,000 $1,500,000 $1,500,000 0.41 %
Term loan 15%, Due 12/23/2023***(14)
12/23/2020$2,000,000 2,000,000 2,000,000 0.55 %
Total3,500,000 3,500,000 0.96 %
PayJoy, Inc.San Francisco, CA
Preferred sharesMobile Access Technology7/23/2021244,117 2,501,570 2,500,002 0.69 %
Rent the Runway, Inc.**
New York, NY
Common shares(3)
Subscription Fashion Rental6/17/2020339,191 5,153,945 2,418,856 0.66 %
Aventine Property Group, Inc.(12)
Chicago, IL
Common shares***Cannabis REIT9/11/2019312,500 2,580,750 2,190,978 0.60 %
Commercial Streaming Solutions Inc. (d/b/a BettorView)(7)
Las Vegas, NV
Simple Agreement for Future EquityInteractive Media & Services3/26/20211,002,720 1,000,000 0.27 %
Rebric, Inc. (d/b/a Compliable)(7)
Denver, CO
Preferred shares, Series Seed-4Gaming Licensing10/12/20212,064,409 1,002,755 1,000,000 0.27 %
Palantir Lending Trust SPV I **(11)
Palo Alto, CA
Equity Participation in Underlying Collateral(3)
Data Analysis6/19/2020— — 930,524 0.26 %
True Global Ventures 4 Plus Pte Ltd**(8)
Singapore, Singapore
Limited Partner Fund InvestmentVenture Investment Fund8/27/2021713,505 670,000 0.18 %
YouBet Technology, Inc. (d/b/a PickUp)(7)
New York, NY
Preferred shares, Series Seed-2Digital Media Technology8/26/2021385,353 502,232 499,999 0.14 %
Kahoot! ASA**(19)
Oslo, Norway
Common shares(3)
Education Software12/5/201486,800 458,138 402,360 0.11 %
Churchill Sponsor VII LLC**(17)
New York, NY
Common share unitsSpecial Purpose Acquisition Company2/25/2021292,100 205,820 205,820 0.06 %
Warrant units2/25/2021277,000 94,180 94,180 0.03 %
Total300,000 300,000 0.09 %
AltC Sponsor LLC**(17)
New York, NY
Share unitsSpecial Purpose Acquisition Company7/21/2021239,300 250,855 250,000 0.07 %
Churchill Sponsor VI LLC**(17)
New York, NY
Common share unitsSpecial Purpose Acquisition Company2/25/2021195,000 134,297 134,297 0.04 %
Warrant units2/25/2021199,100 65,703 65,703 0.02 %
   Total200,000 200,000 0.06 %
Fullbridge, Inc.Cambridge, MA
Common sharesBusiness Education5/13/2012517,917 6,150,506 — — %
Promissory Note 1.47%, Due 11/9/2021(4)(20)
3/3/2016$2,270,458 2,270,858 — — %
Total8,421,364 — — %
Treehouse Real Estate Investment Trust, Inc.(12)
Chicago, IL
Common shares***Cannabis REIT9/11/2019312,500 4,919,250 — — %
Kinetiq Holdings, LLCPhiladelphia, PA
Common shares, Class ASocial Data Platform3/30/2012112,374 — — — %
Total Non-controlled/Non-affiliate$146,360,300 $231,768,290 63.53 %
See accompanying notes to condensed consolidated financial statements.
11

TABLE OF CONTENTS
SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS - continued
December 31, 2021
Portfolio Investments*Headquarters/
Industry
Date of Initial InvestmentShares/
Principal
CostFair Value% of Net
Assets
NON-CONTROLLED/AFFILIATE(1)
StormWind, LLC(5)
Scottsdale, AZ
Preferred shares, Series D 8%Interactive Learning11/26/2019329,337 $257,267 $621,093 0.17 %
Preferred shares, Series C 8%1/7/20142,779,134 4,000,787 6,496,729 1.78 %
Preferred shares, Series B 8%12/16/20113,279,629 2,019,687 4,423,607 1.21 %
Preferred shares, Series A 8%2/25/2014366,666 110,000 289,293 0.08 %
Total6,387,741 11,830,722 3.24 %
OneValley, Inc. (f/k/a NestGSV, Inc.)San Mateo, CA
Derivative Security, Expiration Date 8/23/2024(10)
Global Innovation Platform8/23/20198,555,124 2,268,268 0.62 %
Convertible Promissory Note 8% Due 8/23/2024(4)(10)
2/17/2016$1,010,198 1,030,176 505,099 0.14 %
Preferred Warrant Series B, Strike Price $2.31, Expiration Date 5/29/20225/29/2017125,000 70,379 — — %
Preferred Warrant Series B, Strike Price $2.31, Expiration Date 12/31/202312/31/2018250,000 5,080 5,000 0.01 %
Total9,660,759 2,778,367 0.77 %
Ozy Media, Inc.Mountain View, CA
Preferred shares, Series C-2 6%Digital Media Platform8/31/2016683,482 2,414,178 — — %
Common Warrants, Strike Price $0.01, Expiration Date 4/9/20284/9/2018295,565 30,647 — — %
Preferred shares, Series B 6%10/3/2014922,509 4,999,999 — — %
Preferred shares, Series A 6%12/11/20131,090,909 3,000,200 — — %
Preferred shares, Series Seed 6%11/2/2012500,000 500,000 — — %
Total10,945,024 — — %
Maven Research, Inc.San Francisco, CA
Preferred shares, Series C 8%Knowledge Networks7/2/2012318,979 2,000,447 — — %
Preferred shares, Series B 5%2/28/201249,505 217,206 — — %
Total2,217,653 — — %
Curious.com, Inc.Menlo Park, CA
Common sharesOnline Education11/22/20131,135,944 12,000,006 — — %
Total Non-controlled/Affiliate$41,211,183 $14,609,089 4.01 %
CONTROLLED(2)
Architect Capital PayJoy SPV, LLC**
San Francisco, CA
Membership Interest in Lending SPV***(15)
Mobile Finance Technology3/24/2021$10,000,000 $10,006,745 $10,000,000 2.74 %
Colombier Sponsor LLC**(17)
New York, NY
Class B UnitsSpecial Purpose Acquisition Company4/1/20211,976,033 1,556,587 1,554,354 0.43 %
Class W Units4/1/20212,700,000 1,159,150 1,157,487 0.32 %
Total2,715,737 2,711,841 0.75 %
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.)Cupertino, CA
Preferred shares, Class A(9)
Clean Technology4/15/201414,300,000 7,151,412 1,047,033 0.29 %
Common shares4/15/2014100,000 10,000 — — %
Total7,161,412 1,047,033 0.29 %
Total Controlled$19,883,894 $13,758,874 3.78 %
Total Portfolio Investments$207,455,377 $260,136,253 71.32 %
See accompanying notes to condensed consolidated financial statements.


12

TABLE OF CONTENTS
See accompanying notes to condensed consolidated financial statements.
__________________________________________
*    All portfolio investments are non-control/non-affiliated and non-income-producing, unless otherwise identified. Equity investments are subject to lock-up restrictions upon their initial public offering (“IPO”). Preferred dividends are generally only payable when declared and paid by the portfolio company's board of directors. The Company’s directors, officers, employees and staff, as applicable, may serve on the board of directors of the Company’s portfolio investments. (Refer to “Note 3—Related-Party Arrangements”). All portfolio investments are considered Level 3 and valued using significant unobservable inputs, unless otherwise noted. (Refer to “Note 4—Investments at Fair Value”). All of the Company's portfolio investments are restricted as to resale, unless otherwise noted, and were valued at fair value as determined in good faith by the Company’s Board of Directors. (Refer to "Note 2—Significant Accounting Policies—Investments at Fair Value").
**    Indicates assets that SuRo Capital Corp. believes do not represent “qualifying assets” under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Of the Company’s total investments as of December 31, 2021, 26.91% of its total investments are non-qualifying assets.
***    Investment is income-producing.

(1)“Affiliate Investments” are investments in those companies that are “Affiliated Companies” of SuRo Capital Corp., as defined in the 1940 Act. In general, a company is deemed to be an “Affiliate” of SuRo Capital Corp. if SuRo Capital Corp. owns 5% or more of the voting securities (i.e., securities with the right to elect directors) of such company. For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 4—Investments at Fair Value”.

(2)“Control Investments” are investments in those companies that are “Controlled Companies” of SuRo Capital Corp., as defined in the 1940 Act. In general, under the 1940 Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities (i.e., securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. For the Schedule of Investments In, and Advances To, Affiliates, as required by SEC Regulation S-X, Rule 12-14, refer to “Note 4—Investments at Fair Value”.

(3)Denotes an investment considered Level 1 or Level 2 and valued using observable inputs. Refer to “Note 4—Investments at Fair Value”.

(4)As of December 31, 2021, the investments noted had been placed on non-accrual status.

(5)SuRo Capital Corp.’s investments in StormWind, LLC are held through SuRo Capital Corp.'s wholly owned subsidiary, GSVC SW Holdings, Inc.

(6)SuRo Capital Corp.’s investments in preferred shares in Residential Homes for Rent, LLC (d/b/a Second Avenue) are held through SuRo Capital Corp.'s wholly owned subsidiary, GSVC AV Holdings, Inc.

(7)SuRo Capital Corp.’s investments in Commercial Streaming Solutions Inc. (d/b/a BettorView), YouBet Technology, Inc. (d/b/a PickUp), and Rebric Inc. (d/b/a Compliable) are held through SuRo Capital Corp.'s wholly owned subsidiary, SuRo Capital Sports, LLC ("SuRo Sports").

(8)SuRo Capital Corp.’s investments in True Global Ventures 4 Plus Pte Ltd are held through SuRo Capital Corp.'s wholly owned subsidiary, GSVC SVDS Holdings, Inc. As of December 31, 2021, $0.7 million of a $2.0 million capital commitment to True Global Ventures 4 Plus Fund LP had been called and funded.

(9)The SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) preferred shares held by SuRo Capital Corp. do not entitle SuRo Capital Corp. to a preferred dividend. SuRo Capital Corp. does not anticipate that SPBRX, INC. will pay distributions on a quarterly or regular basis or become a predictable distributor of distributions.

(10)On August 23, 2019, SuRo Capital Corp. amended the structure of its investment in OneValley, Inc. (f/k/a NestGSV, Inc.). As part of the agreement, SuRo Capital Corp.’s equity holdings (warrants notwithstanding) were restructured into a derivative security. OneValley, Inc. (f/k/a NestGSV, Inc.) has the right to call the position at any time over a five year period, while SuRo Capital Corp. can put the shares to OneValley, Inc. (f/k/a NestGSV, Inc.) at the end of the five year period.

(11)As of December 31, 2021, 512,290 Class A common shares remain in Palantir Lending Trust SPV I, none of which are subject to lock-up restrictions.

(12)On January 1, 2021, Treehouse Real Estate Investment Trust, Inc. completed its spin off of 34.4% of its assets into Aventine Property Group, Inc. During the year ended December 31, 2021, Aventine Property Group, Inc. declared an aggregate of $0.1 million in dividend distributions. During the year ended December 31, 2021, Treehouse Real Estate Investment Trust, Inc. declared an aggregate of $0.2 million in dividend distributions.

(13)On July 30, 2021, A Place for Rover, Inc. executed a business combination, through Nebula Caravel Acquisition Corp., a special purpose acquisition company. Following the merger, A Place for Rover, Inc. changed its name to Rover Group, Inc. and SuRo Capital Corp. received 130,390 additional common shares as a result of the exchange ratio prescribed in the transaction. As of December 31, 2021, SuRo Capital Corp.'s common shares in Rover Group, Inc. were subject to certain lock-up restrictions.
SURO CAPITAL CORP. AND SUBSIDIARIES
### SCHEDULE OF INVESTMENTS - continued
13

TABLE OF CONTENTS
December 31, 2021


(14)During the year ended December 31, 2021, approximately $1.4 million has been received from Residential Homes for Rent, LLC (d/b/a Second Avenue) related to the 15% term loan due December 23, 2023. Of the proceeds received, approximately $1.0 million repaid a portion of the outstanding principal and approximately $0.4 million was attributed to interest.

(15)As of December 31, 2021, the total $10.0 million capital commitment representing SuRo Capital Corp.'s Membership Interest in Architect Capital PayJoy SPV, LLC had been called and funded.

(16)During the year ended December 31, 2021, NewLake Capital Partners, Inc. (f/k/a GreenAcreage Real Estate Corp.) declared an aggregate of approximately $0.3 million in dividend distributions. SuRo Capital Corp. does not anticipate that NewLake Capital Partners, Inc. (f/k/a GreenAcreage Real Estate Corp.) will pay distributions on a recurring or regular basis or become a predictable distributor of distributions. On August 20, 2021, NewLake Capital Partners, Inc.(f/k/a GreenAcreage Real Estate Corp.) went public via an initial public offering on the OTCQX. As of December 31, 2021, none of SuRo Capital Corp.'s common shares in NewLake Capital Partners, Inc. (f/k/a GreenAcreage Real Estate Corp.) were subject to lock-up restrictions.

(17)Denotes an investment that is the sponsor of a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

(18)On June 11, 2021, Churchill Capital Corp. II, a special purpose acquisition company, executed a private investment in public equity transaction in order to acquire shares of Software Luxembourg Holding S.A. alongside the merger of Software Luxembourg Holding S.A. and Churchill Capital Corp. II. Following the merger, Software Luxembourg Holding S.A. changed its name to Skillsoft Corp. As of December 31, 2021, none of SuRo Capital Corp.'s common shares in Skillsoft Corp. were subject to lock-up restrictions.

(19)On September 3, 2021, Clever, Inc. completed its sale to Kahoot! ASA. In connection with this transaction, SuRo Capital Corp. received 86,800 common shares in Kahoot! ASA in addition to cash proceeds and amounts currently held in escrow. SuRo Capital Corp. is also eligible to receive cash and Kahoot! ASA common shares subject to certain earn-out provisions and contingencies. As of December 31, 2021, SuRo Capital Corp.'s common shares in Kahoot! ASA were subject to certain lock-up restrictions.

(20)During the year ended December 31, 2021, Fullbridge, Inc.'s obligations under its financing arrangements with the Company became past due.
14

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022

NOTE 1—NATURE OF OPERATIONS

SuRo Capital Corp. ("we", "us", "our", “Company” or “SuRo Capital”), formerly known as Sutter Rock Capital Corp. and as GSV Capital Corp. and formed in September 2010 as a Maryland corporation, is an internally-managed, non-diversified closed-end management investment company. The Company has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the “1940 Act”), and has elected to be treated, and intends to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

On and effective March 12, 2019, our Board of Directors approved internalizing our operating structure ("Internalization") and we began operating as an internally-managed non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. Prior to March 12, 2019, we were externally managed by our former investment adviser, GSV Asset Management, LLC (“GSV Asset Management”), pursuant to an investment advisory agreement (the “Investment Advisory Agreement”), and our former administrator, GSV Capital Service Company, LLC (“GSV Capital Service Company”), provided the administrative services necessary for our operations pursuant to an administration agreement (the “Administration Agreement”).

The Company’s date of inception was January 6, 2011, which is the date it commenced its development stage activities. The Company’s common stock is currently listed on the Nasdaq Global Select Market under the symbol “SSSS” (formerly "GSVC"). Prior to November 24, 2021, our common stock traded on the Nasdaq Capital Market under the same symbol ("SSSS"). The Company began its investment operations during the second quarter of 2011.

The table below displays the Company’s subsidiaries as of March 31, 2022, which, other than GSV Capital Lending, LLC (“GCL”) and SuRo Capital Sports, LLC, are collectively referred to as the “Taxable Subsidiaries.” The Taxable Subsidiaries were formed to hold portfolio investments. The Taxable Subsidiaries, including their associated portfolio investments, are consolidated with the Company for accounting purposes, but have elected to be treated as separate entities for U.S. federal income tax purposes. GCL was formed to originate portfolio loan investments within the state of California and is consolidated with the Company for accounting purposes. Refer to “Note 2—Significant Accounting Policies—Basis of Consolidation” below for further detail.
SubsidiaryJurisdiction of
Incorporation
Formation
Date
Percentage
Owned
GCLDelawareApril 13, 2012100%
SuRo Capital Sports, LLC ("SuRo Sports")DelawareMarch 19, 2021100%
Subsidiaries below are referred to collectively, as the “Taxable Subsidiaries”
GSVC AE Holdings, Inc. (“GAE”)DelawareNovember 28, 2012100%
GSVC AV Holdings, Inc. (“GAV”)DelawareNovember 28, 2012100%
GSVC SW Holdings, Inc. (“GSW”)DelawareNovember 28, 2012100%
GSVC SVDS Holdings, Inc. (“SVDS”)DelawareAugust 13, 2013100%

The Company’s investment objective is to maximize its portfolio’s total return, principally by seeking capital gains on its equity and equity-related investments, and to a lesser extent, income from debt investments. The Company invests principally in the equity securities of what it believes to be rapidly growing venture-capital-backed emerging companies. The Company may acquire its investments in these portfolio companies through offerings of the prospective portfolio companies, transactions on secondary marketplaces for private companies, or negotiations with selling stockholders. In addition, the Company may invest in private credit and in founders equity, founders warrants, forward purchase agreements, and private investment in public equity transactions of special purpose acquisition companies. The Company may also invest on an opportunistic basis in select publicly traded equity securities or certain non-U.S. companies that otherwise meet its investment criteria, subject to any applicable limitations under the 1940 Act.

15

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
NOTE 2—SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The interim unaudited condensed consolidated financial statements of the Company are prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company is an investment company following the specialized accounting and reporting guidance specified in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies. In the opinion of management, all adjustments, all of which were of a normal recurring nature, were considered necessary for the fair presentation of consolidated financial statements for the period have been included.

The results of operations for the current interim period are not necessarily indicative of results that ultimately may be achieved for any other interim period or for the year ending December 31, 2022. The interim unaudited condensed consolidated financial statements and notes hereto should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's annual report on Form 10-K for the year ended December 31, 2021.

Basis of Consolidation

Under Article 6 of Regulation S-X and the American Institute of Certified Public Accountants’ (“AICPA”) Audit and Accounting Guide for Investment Companies, the Company is precluded from consolidating any entity other than another investment company, a controlled operating company that provides substantially all of its services and benefits to the Company, and certain entities established for tax purposes where the Company holds a 100% interest. Accordingly, the Company’s condensed consolidated financial statements include its accounts and the accounts of the Taxable Subsidiaries, GCL, and SuRo Sports, its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with GAAP requires the Company’s management to make a number of significant estimates. These include estimates of the fair value of certain assets and liabilities and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reporting period. It is likely that changes in these estimates will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ materially from such estimates.

Uncertainties and Risk Factors

The Company is subject to a number of risks and uncertainties in the nature of its operations, as well as vulnerability due to certain concentrations. Refer to "Risk Factors” in Part II, Item 1A of this Form 10-Q for a detailed discussion of the risks and uncertainties inherent in the nature of the Company’s operations. Refer to “Note 4—Investments at Fair Value” for an overview of the Company’s industry and geographic concentrations.

Investments at Fair Value

The Company applies fair value accounting in accordance with GAAP and the AICPA’s Audit and Accounting Guide for Investment Companies. The Company values its assets on a quarterly basis, or more frequently if required under the 1940 Act.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:
16

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022

Level 1—Valuations based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access at the measurement date.

Level 2—Valuations based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data at the measurement date for substantially the full term of the assets or liabilities.

Level 3—Valuations based on unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The majority of the Company’s investments are Level 3 investments and are subject to a high degree of judgment and uncertainty in determining fair value.

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, gains and losses for such assets and liabilities categorized within the Level 3 table set forth in “Note 4—Investments at Fair Value” may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in/out of the Level 3 category as of the beginning of the measurement period in which the reclassifications occur. Refer to “Levelling Policy” below for a detailed discussion of the levelling of the Company’s financial assets or liabilities and events that may cause a reclassification within the fair value hierarchy.

Securities for which market quotations are readily available on an exchange are valued at the most recently available closing price of such security as of the valuation date, unless there are legal or contractual restrictions on the sale or use of such security that under ASC 820-10-35 should be incorporated into the security’s fair value measurement as a characteristic of the security that would transfer to market participants who would buy the security. The Company may also obtain quotes with respect to certain of its investments from pricing services, brokers or dealers in order to value assets. When doing so, the Company determines whether the quote obtained is sufficient according to GAAP to determine the fair value of the security. If determined to be adequate, the Company uses the quote obtained.

Securities for which reliable market quotations are not readily available or for which the pricing source does not provide a valuation or methodology, or provides a valuation or methodology that, in the judgment of management, our Board of Directors or the valuation committee of the Company’s Board of Directors (the “Valuation Committee”), does not reliably represent fair value, shall each be valued as follows:

1.    The quarterly valuation process begins with each portfolio company or investment being initially valued by the investment professionals responsible for the portfolio investment;

2.    Preliminary valuation conclusions are then documented and discussed with senior management;

3.    An independent third-party valuation firm is engaged by the Valuation Committee to conduct independent appraisals and review management’s preliminary valuations and make its own independent assessment, for all investments for which there are no readily available market quotations;

4.    The Valuation Committee discusses the valuations and recommends to the Company’s Board of Directors a fair value for each investment in the portfolio based on the input of management and the independent third-party valuation firm; and

17

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
5.    The Company’s Board of Directors then discusses the valuations recommended by the Valuation Committee and determines in good faith the fair value of each investment in the portfolio.

In making a good faith determination of the fair value of investments, the Company considers valuation methodologies consistent with industry practice. Valuation methods utilized include, but are not limited to the following: comparisons to prices from secondary market transactions; venture capital financings; public offerings; purchase or sales transactions; as well as analysis of financial ratios and valuation metrics of the portfolio companies that issued such private equity securities to peer companies that are public, analysis of the portfolio companies’ most recent financial statements and forecasts, and the markets in which the portfolio company does business, and other relevant factors. The Company assigns a weighting based upon the relevance of each method to determine the fair value of each investment.

For investments that are not publicly traded or that do not have readily available market quotations, the Valuation Committee generally engages an independent valuation firm to provide an independent valuation, which the Company’s Board of Directors considers, among other factors, in making its fair value determinations for these investments. For the current and prior fiscal year, the Valuation Committee engaged an independent valuation firm to perform valuations of 100% of the Company’s investments for which there were no readily available market quotations.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been reported had a ready market for the investments existed, and it is reasonably possible that the difference could be material.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the realized gains or losses on investments to be different from the net change in unrealized appreciation or depreciation currently reflected in the consolidated financial statements.

Equity Investments

Equity investments for which market quotations are readily available in an active market are generally valued at the most recently available closing market prices and are classified as Level 1 assets. Equity investments with readily available market quotations that are subject to sales restrictions due to an initial public offering (“IPO”) by the portfolio company will be classified as Level 1. Any other equity investments with readily available market quotations that are subject to sales restrictions that would transfer to market participants who would buy the security may be valued at a discount for a lack of marketability (“DLOM”), to the most recently available closing market prices depending upon the nature of the sales restriction. These investments are generally classified as Level 2 assets. The DLOM used is generally based upon the market value of publicly traded put options with similar terms.

The fair values of the Company’s equity investments for which market quotations are not readily available are determined based on various factors and are classified as Level 3 assets. To determine the fair value of a portfolio company for which market quotations are not readily available, the Company may analyze the relevant portfolio company’s most recently available historical and projected financial results, public market comparables, and other factors. The Company may also consider other events, including the transaction in which the Company acquired its securities, subsequent equity sales by the portfolio company, and mergers or acquisitions affecting the portfolio company. In addition, the Company may consider the trends of the portfolio company’s basic financial metrics from the time of its original investment until the measurement date, with material improvement of these metrics indicating a possible increase in fair value, while material deterioration of these metrics may indicate a possible reduction in fair value.

In determining the value of equity or equity-linked securities (including warrants to purchase common or preferred stock) in a portfolio company, the Company considers the rights, preferences and limitations of such securities. In cases where a portfolio company’s capital structure includes multiple classes of preferred and common stock and equity-linked securities with different rights and preferences, the Company may use an option pricing model to allocate value to each equity-linked security, unless it believes a liquidity event such as an acquisition or a dissolution is imminent, or the portfolio company is unlikely to continue as a going concern. When equity-linked securities expire worthless, any cost associated with these positions is
18

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
recognized as a realized loss on investments in the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows. In the event these securities are exercised into common or preferred stock, the cost associated with these securities is reassigned to the cost basis of the new common or preferred stock. These conversions are noted as non-cash operating items on the Condensed Consolidated Statements of Cash Flows.

Debt Investments

Given the nature of the Company’s current debt investments (excluding U.S. Treasuries), principally convertible and promissory notes issued by venture-capital-backed portfolio companies, these investments are classified as Level 3 assets because there is no known or accessible market or market indexes for these investment securities to be traded or exchanged. The Company’s debt investments are valued at estimated fair value as determined by the Company’s Board of Directors.

Options

The Company’s Board of Directors will ascribe value to options based on fair value analyses that can include discounted cash flow analyses, option pricing models, comparable analyses and other techniques as deemed appropriate. These investments are classified as Level 3 assets because there is no known or accessible market or market indexes for these investment securities to be traded or exchanged. The Company’s options are valued at estimated fair value as determined by the Company’s Board of Directors.

Special Purpose Acquisition Companies

The Company's Board of Directors measures its Special Purpose Acquisition Company ("SPAC") investments at fair value, which is equivalent to cost until a SPAC transaction is announced. After a SPAC transaction is announced, the Company's Board of Directors will ascribe value to SPAC investments based on fair value analyses that can include option pricing models, probability-weighted expected return method analyses and other techniques as deemed appropriate. Upon completion of the SPAC transaction, the Company utilizes the public share price of the entity, less a discount for lack of marketability if there are restrictions on selling. The Company's SPAC investments are valued at estimated fair value as determined by the Company's Board of Directors.

Portfolio Company Investment Classification

The Company is a non-diversified company within the meaning of the 1940 Act. The Company classifies its investments by level of control. As defined in the 1940 Act, control investments are those where the investor retains the power to exercise a controlling influence over the management or policies of a company. Control is generally deemed to exist when a company or individual directly or indirectly owns beneficially more than 25% of the voting securities of an investee company. Affiliated investments and affiliated companies are defined by a lesser degree of influence and are deemed to exist when a company or individual directly or indirectly owns, controls or holds the power to vote 5% or more of the outstanding voting securities of a portfolio company. Refer to the Consolidated Schedules of Investments as of March 31, 2022 and December 31, 2021, for details regarding the nature and composition of the Company’s investment portfolio.

Levelling Policy

The portfolio companies in which the Company invests may offer their shares in IPOs. The Company’s shares in such portfolio companies are typically subject to lock-up agreements for 180 days following the IPO. Upon the IPO date, the Company transfers its investment from Level 3 to Level 1 due to the presence of an active market, or Level 2 if limited by the lock-up agreement. The Company prices the investment at the closing price on a public exchange as of the measurement date. In situations where there are lock-up restrictions, as well as legal or contractual restrictions on the sale or use of such security that under ASC 820-10-35 should be incorporated into the security’s fair value measurement as a characteristic of the security that would transfer to market participants who would buy the security, the Company will classify the investment as Level 2 subject to an appropriate DLOM to reflect the restrictions upon sale. The Company transfers investments between levels based on the fair value at the beginning of the measurement period in accordance with FASB ASC 820. For investments transferred out of Level 3 due to an IPO, the Company transfers these investments based on their fair value at the IPO date.
19

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022

Securities Transactions

Securities transactions are accounted for on the date the transaction for the purchase or sale of the securities is entered into by the Company (i.e., trade date). Securities transactions outside conventional channels, such as private transactions, are recorded as of the date the Company obtains the right to demand the securities purchased or to collect the proceeds from a sale and incurs an obligation to pay for securities purchased or to deliver securities sold, respectively.

Valuation of Other Financial Instruments

The carrying amounts of the Company’s other, non-investment financial instruments, consisting of cash, receivables, accounts payable, and accrued expenses, approximate fair value due to their short-term nature.

Cash

The Company places its cash with U.S. Bank, N.A., Bridge Bank (a subsidiary of Western Alliance Bank), and Silicon Valley Bank, and at times, cash held in these accounts may exceed the Federal Deposit Insurance Corporation insured limit. The Company believes that U.S. Bank, N.A., Bridge Bank (a subsidiary of Western Alliance Bank), and Silicon Valley Bank are high-quality financial institutions and that the risk of loss associated with any uninsured balance is remote.

Escrow Proceeds Receivable

A portion of the proceeds from the sale of portfolio investments are held in escrow as a recourse for indemnity claims that may arise under the sale agreement or other related transaction contingencies. Amounts held in escrow are held at estimated realizable value and included in net realized gains (losses) on investments in the Condensed Consolidated Statements of Operations for the period in which they occurred and are adjusted as needed. Any remaining escrow proceeds balances from these transactions reasonably expected to be received are reflected on the Condensed Consolidated Statement of Assets and Liabilities as escrow proceeds receivable. Escrow proceeds receivable resulting from contingent consideration is to be recognized when the amount of the contingent consideration becomes realized or realizable. As of March 31, 2022 and December 31, 2021, the Company had $4,577,518 and $2,046,645, respectively, in escrow proceeds receivable.

Deferred Financing Costs

The Company records origination costs related to lines of credit as deferred financing costs. These costs are deferred and amortized as part of interest expense using the straight-line method over the respective life of the line of credit. For modifications to a line of credit, any unamortized origination costs are expensed. Included within deferred financing costs are offering costs incurred relating to the Company’s shelf registration statement on Form N-2. The Company defers these offering costs until capital is raised pursuant to the shelf registration statement or until the shelf registration statement expires. For equity capital raised, the offering costs reduce paid-in capital resulting from the offering. For debt capital raised, the associated offering costs are amortized over the life of the debt instrument. As of March 31, 2022 and December 31, 2021, the Company had deferred financing costs of $606,607 and $2,592,611, respectively, on the Condensed Consolidated Statement of Assets and Liabilities.
March 31, 2022December 31, 2021
Deferred debt issuance costs$— $1,970,892 
Deferred offering costs606,607 621,719 
Deferred Financing Costs$606,607 $2,592,611 

Operating Leases & Related Deposits

The Company accounts for its operating leases as prescribed by ASC 842, Leases, which requires lessees to recognize a right-of-use asset on the balance sheet, representing its right to use the underlying asset for the lease term, and a corresponding lease liability for all leases with terms greater than 12 months. The lease expense is presented as a single lease cost that is
20

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
amortized on a straight-line basis over the life of the lease. Non-lease components (maintenance, property tax, insurance and parking) are not included in the lease cost. On June 3, 2019, the Company entered a 5-year operating lease for office space for which the Company has recorded a right-of-use asset and a corresponding lease liability for the operating lease obligation. These amounts have been discounted using the rate implicit in the lease. Refer to “Note 7—Commitments and Contingencies—Operating Leases and Related Deposits” for further detail.

Stock-based Compensation

Using the fair value recognition provisions as prescribed by ASC 718, Stock Compensation, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate service period. Determining the fair value of stock-based awards requires considerable judgment, including estimating the expected term of stock options and the expected volatility of our stock price. Differences between actual results and these estimates could have a material effect on our financial results. Forfeitures are accounted for as they occur. Refer to “Note 11—Stock-Based Compensation” for further detail.

Revenue Recognition

The Company recognizes gains or losses on the sale of investments using the specific identification method. The Company recognizes interest income, adjusted for amortization of premium and accretion of discount, on an accrual basis. The Company recognizes dividend income on the ex-dividend date.

Investment Transaction Costs and Escrow Deposits

Commissions and other costs associated with an investment transaction, including legal expenses not reimbursed by the portfolio company, are included in the cost basis of purchases and deducted from the proceeds of sales. The Company makes certain acquisitions on secondary markets, which may involve making deposits to escrow accounts until certain conditions are met, including the underlying private company’s right of first refusal. If the underlying private company does not exercise or assign its right of first refusal and all other conditions are met, then the funds in the escrow account are delivered to the seller and the account is closed. Such transactions would be reflected on the Condensed Consolidated Statement of Assets and Liabilities as escrow deposits. As of March 31, 2022 and December 31, 2021, the Company had no material escrow deposits.

Unrealized Appreciation or Depreciation of Investments

Unrealized appreciation or depreciation is calculated as the difference between the fair value of the investment and the cost basis of such investment.

U.S. Federal and State Income Taxes

The Company elected to be treated as a regulated investment company (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), beginning with its taxable year ended December 31, 2014, has qualified to be treated as a RIC for subsequent taxable years and intends to continue to operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its stockholders at least the sum of 90% of our investment company taxable income (“ICTI”), including payment-in-kind interest income, as defined by the Code, and 90% of our net tax-exempt interest income (which is the excess of its gross tax-exempt interest income over certain disallowed deductions) for each taxable year (the "Annual Distribution Requirement"). Depending on the level of ICTI earned in a tax year, the Company may choose to carry forward into the next tax year ICTI in excess of current year dividend distributions. Any such carryforward ICTI must be distributed on or before December 31 of the subsequent tax year to which it was carried forward.

If the Company meets the Annual Distribution Requirement, but does not distribute (or is not deemed to have distributed) each calendar year a sum of (1) 98% of its net ordinary income for each calendar year, (2) 98.2% of its capital gain net income for the one-year period ending October 31 in that calendar year and (3) any income recognized, but not distributed, in preceding years (the “Excise Tax Avoidance Requirement”), it generally will be required to pay an excise tax equal to 4% of
21

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
the amount by which the Excise Tax Avoidance Requirement exceeds the distributions for the year. To the extent that the Company determines that its estimated current year annual taxable income will exceed estimated current year dividend distributions from such taxable income, the Company will accrue excise taxes, if any, on estimated excess taxable income as taxable income is earned using an annual effective excise tax rate. The annual effective excise tax rate is determined by dividing the estimated annual excise tax by the estimated annual taxable income.

So long as the Company qualifies and maintains its tax treatment as a RIC, it generally will not be subject to U.S. federal and state income taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. Rather, any tax liability related to income earned by the RIC will represent obligations of the Company’s investors and will not be reflected in the consolidated financial statements of the Company. Included in the Company’s consolidated financial statements, the Taxable Subsidiaries are taxable subsidiaries, regardless of whether the Company is a RIC. These taxable subsidiaries are not consolidated for income tax purposes and may generate income tax expenses as a result of their ownership of the portfolio companies. Such income tax expenses and deferred taxes, if any, will be reflected in the Company’s condensed consolidated financial statements.

If it is not treated as a RIC, the Company will be taxed as a regular corporation (a “C corporation”) under Subchapter C of the Code for such taxable year. If the Company has previously qualified as a RIC but is subsequently unable to qualify for treatment as a RIC, and certain amelioration provisions are not applicable, the Company would be subject to tax on all of its taxable income (including its net capital gains) at regular corporate rates. The Company would not be able to deduct distributions to stockholders, nor would it be required to make distributions. Distributions, including distributions of net long-term capital gain, would generally be taxable to its stockholders as ordinary dividend income to the extent of the Company’s current and accumulated earnings and profits. Subject to certain limitations under the Code, corporate stockholders would be eligible to claim a dividend received deduction with respect to such dividend; non-corporate stockholders would generally be able to treat such dividends as “qualified dividend income,” which is subject to reduced rates of U.S. federal income tax. Distributions in excess of the Company’s current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s adjusted tax basis, and any remaining distributions would be treated as a capital gain. In order to requalify as a RIC, in addition to the other requirements discussed above, the Company would be required to distribute all of its previously undistributed earnings attributable to the period it failed to qualify as a RIC by the end of the first year that it intends to requalify for tax treatment as a RIC. If the Company fails to requalify for tax treatment as a RIC for a period greater than two taxable years, it may be subject to regular corporate tax on any net built-in gains with respect to certain of its assets (i.e., the excess of the aggregate gains, including items of income, over aggregate losses that would have been realized with respect to such assets if the Company had been liquidated) that it elects to recognize on requalification or when recognized over the next five years. The Company was taxed as a C Corporation for its 2012 and 2013 taxable years. Refer to “Note 9—Income Taxes” for further details.

The Company elected to be treated as a RIC for the taxable year ended December 31, 2014 in connection with the filing of its 2014 tax return. As a result, the Company was required to pay a corporate-level U.S. federal income tax on the amount of the net built-in gains in its assets (the amount by which the net fair market value of the Company’s assets exceeds the net adjusted basis in its assets) either (1) as of the date it converted to a RIC (i.e., the beginning of the first taxable year that the Company qualifies as a RIC, which would be January 1, 2014), or (2) to the extent that the Company recognized such net built-in gains during the five-year recognition period beginning on the date of conversion. As of January 1, 2014, the Company had net unrealized built-in gains, but did not incur a built-in-gains tax for the 2014 tax year due to the fact that there were sufficient net capital loss carryforwards to completely offset recognized built-in gains as well as available net operating losses. The five-year recognition period ended on December 31, 2018.

Per Share Information

Net change in net assets resulting from operations per basic common share is computed using the weighted-average number of shares outstanding for the period presented. Diluted net change in net assets resulting from operations per common share is computed by dividing net increase/(decrease) in net assets resulting from operations for the period adjusted to include the pre-tax effects of interest incurred on potentially dilutive securities, by the weighted-average number of common shares outstanding plus any potentially dilutive shares outstanding during the period. The Company used the if-converted method in accordance with FASB ASC 260, Earnings Per Share (“ASC 260”) to determine the number of potentially dilutive shares
22

TABLE OF CONTENTS


SURO CAPITAL CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2022
outstanding. Refer to “Note 6—Net Increase in Net Assets Resulting from Operations per Common Share—Basic and Diluted” for further detail.

Recently Issued or Adopted Accounting Standards

In April 2020, as part of the Securities Offering Reform for Closed-End Investment Companies final rule, the SEC adopted certain structured data reporting requirements for BDCs to submit financial statement information using Inline eXtensible Business Reporting Language (XBRL) format to the extent required of operating companies. BDCs that are eligible to file a short-form registration statement will be subject to the above structuring requirements with respect to Forms filed on or after August 1, 2022. Other BDCs will be subject to the requirements with respect to Forms filed on or after February 1, 2023. The Company is currently assessing the impact of this standard on our financial condition and results of operations.

In May 2020, the SEC adopted rule amendments that impacted the requirement of investment companies, including BDCs, to disclose the financial statements of certain of their portfolio companies or acquired funds (the “Final Rules”). The Final Rules adopted a new definition of “significant subsidiary” set forth in Rule 1-02(w)(2) of Regulation S-X under the Securities Act. Rules 3-09 and 4-08(g) of Regulation S-X require investment companies to include separate financial statements or summary financial information, respectively, in such investment company’s periodic reports for any portfolio company that meets the definition of “significant subsidiary.” The Final Rules amended the definition of “significant subsidiary” in a manner that was intended to more accurately capture those portfolio companies that were more likely to materially impact the financial condition of an investment company.

In October 2020, the FASB issued ASU 2020-10, Codification Improvements, which made various technical changes and corrections intended to provide clarifications to existing guidance, as well as simplifications to wording or structure of existing guidance. The Company adopted the modified disclosure requirements during the period ended March 31, 2021.

In December 2020, the SEC adopted Rule 2a-5, which established requirements for satisfying a fund board's obligation to determine fair value in good faith for purposes of the Investment Company Act of 1940. The rule permits boards to assign the determination to a “valuation designee,” who may be the fund’s investment adviser or, if the fund is internally managed, an officer of the fund. The rule also defines a market quotation as “readily available” only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date. In connection with the adoption of new Rule 2a-5, the Commission also adopted new Rule 31a-4, which requires funds to maintain documentation to support fair value determinations and documentation related to the designation of the valuation designee. The Company is evaluating the impact of adopting these new rules and intends to comply with their requirements on or before the compliance date in September 2022.

In December 2021, the SEC published Staff Accounting Bulletin No. 120 (“SAB 120”) to provide accounting and disclosure guidance for stock compensation awards made to executives and conforming amendments to the Staff Accounting Bulletin Series to align with the current authoritative accounting guidance in ASC 718, Compensation – Stock Compensation. In part, SAB 120 requires that an entity disclose how it determines the current price of underlying shares for grant-date fair value, the policy for when an adjustment to the share price is required, how it determines the amount of an adjustment to the share price and any significant assumptions used in determining an adjustment to the share price. SAB 120 is effective for all stock compensation awards issued after December 1, 2021. The Company is in compliance with the guidance pursuant to SAB 120 for any share-based compensation disclosures. See "Note 11 – Stock-Based Compensation" for further discussion of the Company’s policies and procedures regarding share-based compensation. The Company does not expect the impact of SAB 120 to be material to the condensed consolidated financial statements and the notes thereto.

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards and any that are not yet effective will not have a material impact on its consolidated financial statements upon adoption.

23