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)
____________________________
Maryland 27-4443543
(State of incorporation) (I.R.S. Employer Identification No.)
640 Fifth Avenue, 12th Floor, New York, NY 10019
(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 Class Trading Symbol Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share SSSS
Nasdaq Global Select Market
6.00% Notes due 2026 SSSSL Nasdaq 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.




SURO CAPITAL CORP.

TABLE OF CONTENTS

PAGE
PART I. FINANCIAL INFORMATION
PART II. OTHER INFORMATION

i

PART I

Item 1.     Financial Statements and Supplementary Data

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, 2022 December 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 
Cash 172,839,141  198,437,078 
Proceeds receivable —  52,493 
Escrow proceeds receivable 4,577,518  2,046,645 
Interest and dividends receivable 87,815  83,655 
Deferred financing costs 606,607  621,719 
Prepaid expenses and other assets(1)
790,211  937,984 
Total Assets 459,679,370  462,315,827 
LIABILITIES
Accounts payable and accrued expenses(1)
1,649,388  875,047 
Accrued interest payable —  175,000 
Dividends payable 3,751,013  23,390,048 
Payable for securities purchased 460,048  — 
6.00% Notes due December 30, 2026(2)
73,117,394  73,029,108 
Total Liabilities 78,977,843  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 par 348,919,222  350,079,409 
Accumulated net investment loss (54,349,302) (50,124,597)
Accumulated net realized gain on investments, net of distributions 11,554,193  11,899,742 
Accumulated net unrealized appreciation of investments 74,265,770  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

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended March 31,
2022 2021
INVESTMENT INCOME
Non-controlled/non-affiliate investments:
Interest income $ 162,455  $ 166,845 
Dividend income 130,645  21,875 
Non-controlled/affiliate investments:
Dividend income —  102,632 
Controlled investments:
Interest income 290,000  — 
Total Investment Income 583,100  291,352 
OPERATING EXPENSES
Compensation expense 1,860,702  1,293,310 
Directors’ fees 160,565  111,250 
Professional fees 1,272,713  973,159 
Interest expense 1,200,786  504,793 
Income tax expense 2,050  2,025 
Other expenses 310,989  241,133 
Total Operating Expenses 4,807,805  3,125,670 
Net Investment Loss (4,224,705) (2,834,318)
Realized Gain on Investments:
Non-controlled/non-affiliated investments 3,096,275  112,152,518 
Net Realized Gain on Investments 3,096,275  112,152,518 
Change in Unrealized Appreciation/(Depreciation) of Investments:
Non-controlled/non-affiliated investments 21,743,987  (3,265,307)
Non-controlled/affiliate investments (289,102) 1,844,470 
Controlled investments 130,000  105,000 
Net Change in Unrealized Appreciation/(Depreciation) of Investments 21,584,885  (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
Basic 31,228,046  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

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


Three Months Ended March 31,
2022 2021
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 investments 3,096,275  112,152,518 
Net change in unrealized appreciation/(depreciation) of investments 21,584,885  (1,315,837)
Net Change in Net Assets Resulting from Operations 20,456,455  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 offering 229,896  — 
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 Assets 15,854,904  134,378,548 
Net Assets at March 31 $ 380,701,528  $ 435,961,621 
Capital Share Activity
Shares outstanding at beginning of year 31,118,556  19,914,023 
Issuance of common stock from public offering 17,807  — 
Issuance of common stock under restricted stock plan 181,597  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 Period 31,164,443  24,205,216 

See accompanying notes to condensed consolidated financial statements.


3

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

Three Months Ended March 31,
2022 2021
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 2026 104,940  — 
Stock-based compensation (30,016) 148,802 
Adjustments to escrow proceeds receivable 2,751,610  (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 investments 1,287,722  125,277,788 
U.S. Treasury bills —  150,000,000 
Change in operating assets and liabilities:
Prepaid expenses and other assets 147,773  82,593 
Interest and dividends receivable (4,160) 93,592 
Proceeds receivable 52,493  — 
Escrow proceeds receivable (2,530,873) 155 
Payable for securities purchased 460,048  (134,250,000)
Accounts payable and accrued expenses 774,341  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, net 229,896  — 
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 Year 198,437,078  45,793,724 
Cash Balance at End of Period $ 172,839,141  $ 165,699,565 
Supplemental Information: 2022 2021
Interest paid $ 1,287,500  $ 794,206 
Taxes paid 2,050  37,875 
Conversion of 4.75% Convertible Senior Notes due 2023 —  37,925,000 
See accompanying notes to condensed consolidated financial statements.


4

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2022
Portfolio Investments* Headquarters/
Industry
Date of Initial Investment Shares/
Principal
Cost Fair Value % of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
Course Hero, Inc. Redwood City, CA
Preferred shares, Series A 8% Online Education 9/18/2014 2,145,509  $ 5,000,001  $ 66,801,229  17.55  %
Preferred shares, Series C 8% 11/5/2021 275,659  9,999,971  9,999,971  2.63  %
Total 14,999,972  76,801,200  20.17  %
Forge Global Holdings, Inc.**
San Francisco, CA
Common shares(3)
Online Marketplace Finance 7/20/2011 2,454,791  2,526,223  62,376,239  16.38  %
Common warrants, Strike Price $3.98, Expiration Date 11/9/2025(3)(17)
7/19/2011 230,144  —  368,474  0.10  %
Total 2,526,223  62,744,713  16.48  %
Blink Health, Inc. New York, NY
Preferred shares, Series A Pharmaceutical Technology 10/27/2020 238,095  5,000,423  3,797,566  1.00  %
Preferred shares, Series C 10/27/2020 261,944  10,003,917  9,999,974  2.63  %
Total 15,004,340  13,797,540  3.62  %
Aspiration Partners, Inc. Marina Del Rey, CA
Preferred shares, Series A Financial Services 8/11/2015 540,270  1,001,815  11,002,528  2.89  %
Preferred shares, Series C-3 8/12/2019 24,912  281,190  507,330  0.13  %
Total 1,283,005  11,509,858  3.02  %
Orchard Technologies, Inc. New York, NY
Preferred shares, Series D Real Estate Platform 8/9/2021 1,488,139  10,004,034  9,999,996  2.63  %
Nextdoor Holdings, Inc.**
San Francisco, CA
Common shares, Class B(3)
Social Networking 9/27/2018 1,802,416  10,002,666  9,986,736  2.62  %
Trax Ltd.**
Singapore, Singapore
Common shares Retail Technology 6/9/2021 55,591  2,781,148  2,437,699  0.64  %
Preferred shares, Investec series 6/9/2021 144,409  7,224,600  6,332,422  1.66  %
Total 10,005,748  8,770,121  2.30  %
Varo Money, Inc. San Francisco, CA
Common shares Financial Services 8/11/2021 1,079,266  10,005,548  8,247,919  2.17  %
Shogun Enterprises, Inc. Austin, TX
Preferred shares, Series B-1 Home Improvement Finance 2/26/2021 436,844  3,501,657  3,499,994  0.92  %
Preferred shares, Series B-2 2/26/2021 301,750  3,501,661  3,499,998  0.92  %
Total 7,003,318  6,999,992  1.84  %
NewLake Capital Partners, Inc. (f/k/a GreenAcreage Real Estate Corp.)**
New York, NY
Common shares***(3)(14)
Cannabis REIT 8/12/2019 251,119  5,106,094  6,277,975  1.65  %
Skillsoft Corp.**
Nashua, NH
Common shares(3)
Online Education 6/8/2021 981,843  9,818,430  5,930,332  1.56  %
Rover Group, Inc.**
Seattle, WA
Common shares(3)
Peer-to-Peer Pet Services 11/3/2014 795,637  2,360,342  4,590,825  1.21  %
Neutron Holdings, Inc. (d/b/a/ Lime) San Francisco, CA
Junior Preferred shares, Series 1-D Micromobility 1/25/2019 41,237,113  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 5/11/2027 5/11/2020 2,032,967  —  —  —  %
Total 10,513,661  3,991,353  1.05  %
Enjoy Technology, Inc.**
Menlo Park, CA
Common shares(3)
On-Demand Commerce 10/16/2014 1,070,919  5,526,777  3,947,407  1.04  %
See accompanying notes to condensed consolidated financial statements.
5

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2022
Portfolio Investments* Headquarters/
Industry
Date of Initial Investment Shares/
Principal
Cost Fair Value % of Net
Assets
True Global Ventures 4 Plus Pte Ltd**(8)
Singapore, Singapore
Limited Partner Fund Investment Venture Investment Fund 8/27/2021 $ 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 Platform 12/23/2020 150,000  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  %
Total 3,250,000  3,831,673  1.01  %
PayJoy, Inc. San Francisco, CA
Preferred shares Mobile Access Technology 7/23/2021 244,117  2,501,570  2,500,002  0.66  %
Aventine Property Group, Inc.(12)
Chicago, IL
Common shares*** Cannabis REIT 9/11/2019 312,500  2,580,750  2,228,187  0.59  %
Rent the Runway, Inc.**
New York, NY
Common shares(3)
Subscription Fashion Rental 6/17/2020 339,191  5,153,945  2,196,804  0.58  %
Commercial Streaming Solutions Inc. (d/b/a BettorView)(7)
Las Vegas, NV
Simple Agreement for Future Equity Interactive Media & Services 3/26/2021 1,002,720  1,000,000  0.26  %
Rebric, Inc. (d/b/a Compliable)(7)
Denver, CO
Preferred shares, Series Seed-4 Gaming Licensing 10/12/2021 2,064,409  1,002,755  1,000,000  0.26  %
Palantir Lending Trust SPV I **(11)
Palo Alto, CA
Equity Participation in Underlying Collateral(3)
Data Analysis 6/19/2020 —  —  741,553  0.19  %
YouBet Technology, Inc. (d/b/a PickUp)(7)
New York, NY
Preferred shares, Series Seed-2 Digital Media Technology 8/26/2021 385,353  502,232  499,999  0.13  %
Churchill Sponsor VII LLC**(15)
New York, NY
Common share units Special Purpose Acquisition Company 2/25/2021 292,100  205,820  205,820  0.05  %
Warrant units 2/25/2021 277,000  94,180  94,180  0.02  %
Total 300,000  300,000  0.08  %
Kahoot! ASA**
Oslo, Norway
Common shares(3)
Education Software 12/5/2014 99,672  458,138  287,205  0.08  %
AltC Sponsor LLC**(15)
New York, NY
Share units Special Purpose Acquisition Company 7/21/2021 239,300  250,855  250,000  0.07  %
Churchill Sponsor VI LLC**(15)
New York, NY
Common share units Special Purpose Acquisition Company 2/25/2021 195,000  134,297  134,297  0.04  %
Warrant units 2/25/2021 199,100  65,703  65,703  0.02  %
   Total 200,000  200,000  0.05  %
Fullbridge, Inc. Cambridge, MA
Common shares Business Education 5/13/2012 517,917  6,150,506  —  —  %
Promissory Note 1.47%, Due 11/9/2021(4)(16)
3/3/2016 $ 2,270,458  2,270,858  —  —  %
Total 8,421,364  —  —  %
Treehouse Real Estate Investment Trust, Inc.(12)
Chicago, IL
Common shares*** Cannabis REIT 9/11/2019 312,500  4,919,250  —  —  %
Kinetiq Holdings, LLC Philadelphia, PA
Common shares, Class A Social Data Platform 3/30/2012 112,374  —  —  —  %
Total Non-controlled/Non-affiliate $ 145,417,242  $ 252,569,218  66.34  %
See accompanying notes to condensed consolidated financial statements.
6

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) - continued
March 31, 2022
Portfolio Investments* Headquarters/
Industry
Date of Initial Investment Shares/
Principal
Cost Fair Value % of Net
Assets
NON-CONTROLLED/AFFILIATE(1)
StormWind, LLC(5)
Scottsdale, AZ
Preferred shares, Series D 8% Interactive Learning 11/26/2019 329,337  $ 257,267  $ 603,850  0.16  %
Preferred shares, Series C 8% 1/7/2014 2,779,134  4,000,787  6,335,118  1.66  %
Preferred shares, Series B 8% 12/16/2011 3,279,629  2,019,687  4,251,900  1.12  %
Preferred shares, Series A 8% 2/25/2014 366,666  110,000  270,096  0.07  %
Total 6,387,741  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 Platform 8/23/2019 8,555,124  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 5/29/2022 5/29/2017 125,000  70,379  —  —  %
Preferred Warrant Series B, Strike Price $2.31, Expiration Date 12/31/2023 12/31/2018 250,000  5,080  5,000  0.00  %
Total 9,660,759  2,859,022  0.75  %
Ozy Media, Inc. Mountain View, CA
Preferred shares, Series C-2 6% Digital Media Platform 8/31/2016 683,482  2,414,178  —  —  %
Common Warrants, Strike Price $0.01, Expiration Date 4/9/2028 4/9/2018 295,565  30,647  —  —  %
Preferred shares, Series B 6% 10/3/2014 922,509  4,999,999  —  —  %
Preferred shares, Series A 6% 12/11/2013 1,090,909  3,000,200  —  —  %
Preferred shares, Series Seed 6% 11/2/2012 500,000  500,000  —  —  %
Total 10,945,024  —  —  %
Maven Research, Inc. San Francisco, CA
Preferred shares, Series C 8% Knowledge Networks 7/2/2012 318,979  2,000,447  —  —  %
Preferred shares, Series B 5% 2/28/2012 49,505  217,206  —  —  %
Total 2,217,653  —  —  %
Curious.com, Inc. Menlo Park, CA
Common shares Online Education 11/22/2013 1,135,944  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 Technology 3/24/2021 $ 10,000,000  $ 10,006,745  $ 10,000,000  2.63  %
Colombier Sponsor LLC**(15)
New York, NY
Class B Units Special Purpose Acquisition Company 4/1/2021 1,976,033  1,556,587  1,554,354  0.41  %
Class W Units 4/1/2021 2,700,000  1,159,150  1,157,487  0.30  %
Total 2,715,737  2,711,841  0.71  %
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) Cupertino, CA
Preferred shares, Class A(9)
Clean Technology 4/15/2014 14,300,000  7,151,412  1,177,033  0.31  %
Common shares 4/15/2014 100,000  10,000  —  —  %
Total 7,161,412  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

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

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

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2021
Portfolio Investments* Headquarters/
Industry
Date of Initial Investment Shares/
Principal
Cost Fair Value % of Net
Assets
NON-CONTROLLED/NON-AFFILIATE
Course Hero, Inc. Redwood City, CA
Preferred shares, Series A 8% Online Education 9/18/2014 2,145,509  $ 5,000,001  $ 77,831,772  21.33  %
Preferred shares, Series C 8% 11/5/2021 275,659  9,999,971  9,999,971  2.74  %
Total 14,999,972  87,831,743  24.07  %
Forge Global, Inc. San Francisco, CA
Common shares, Class AA Online Marketplace Finance 7/20/2011 625,520  266,507  16,430,555  4.50  %
Junior Preferred shares 7/19/2011 160,534  2,259,716  4,216,752  1.16  %
Junior Preferred warrants, Strike Price $12.42, Expiration Date 11/9/2025 7/19/2011 73,695  —  368,474  0.10  %
Total 2,526,223  21,015,781  5.76  %
Blink Health, Inc. New York, NY
Preferred shares, Series A Pharmaceutical Technology 10/27/2020 238,095  5,000,423  4,315,552  1.18  %
Preferred shares, Series C 10/27/2020 261,944  10,003,917  9,999,974  2.74  %
Total 15,004,340  14,315,526  3.92  %
Nextdoor Holdings, Inc.**
San Francisco, CA
Common shares(3)
Social Networking 9/27/2018 1,801,850  10,002,666  12,439,522  3.41  %
Aspiration Partners, Inc. Marina Del Rey, CA
Preferred shares, Series A Financial Services 8/11/2015 540,270  1,001,815  10,556,306  2.89  %
Preferred shares, Series C-3 8/12/2019 24,912  281,190  499,437  0.14  %
Total 1,283,005  11,055,743  3.03  %
Trax Ltd.**
Singapore, Singapore
Common shares Retail Technology 6/9/2021 55,591  2,781,148  2,882,476  0.79  %
Preferred shares, Investec series 6/9/2021 144,409  7,224,600  7,487,823  2.05  %
Total 10,005,748  10,370,299  2.84  %
Orchard Technologies, Inc. New York, NY
Preferred shares, Series D Real Estate Platform 8/9/2021 1,488,139  10,004,034  9,999,996  2.74  %
Skillsoft Corp.**(18)
Nashua, NH
Common shares(3)
Online Education 6/8/2021 981,843  9,818,430  8,983,863  2.46  %
Varo Money, Inc. San Francisco, CA
Common shares Financial Services 8/11/2021 1,079,266  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 REIT 8/12/2019 278,471  5,653,375  7,986,548  2.19  %
Rover Group, Inc.**(13)
Seattle, WA
Common shares(3)
Peer-to-Peer Pet Services 11/3/2014 838,381  2,506,119  7,765,504  2.13  %
Shogun Enterprises, Inc. Austin, TX
Preferred shares, Series B-1 Home Improvement Finance 2/26/2021 436,844  3,501,657  3,531,447  0.97  %
Preferred shares, Series B-2 2/26/2021 301,750  3,501,661  3,499,998  0.96  %
Total 7,003,318  7,031,445  1.93  %
Enjoy Technology, Inc.**
Menlo Park, CA
Common shares(3)
On-Demand Commerce 10/16/2014 1,070,919  5,526,777  4,576,572  1.25  %
Neutron Holdings, Inc. (d/b/a/ Lime) San Francisco, CA
Junior Preferred shares, Series 1-D Micromobility 1/25/2019 41,237,113  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 5/11/2027 5/11/2020 2,032,967  —  —  —  %
Total 10,513,661  3,991,353  1.10  %
See accompanying notes to condensed consolidated financial statements.
10

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS - continued
December 31, 2021
Portfolio Investments* Headquarters/
Industry
Date of Initial Investment Shares/
Principal
Cost Fair Value % of Net
Assets
Residential Homes for Rent, LLC (d/b/a Second Avenue) Chicago, IL
Preferred shares, Series A(6)
Real Estate Platform 12/23/2020 150,000  $ 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  %
Total 3,500,000  3,500,000  0.96  %
PayJoy, Inc. San Francisco, CA
Preferred shares Mobile Access Technology 7/23/2021 244,117  2,501,570  2,500,002  0.69  %
Rent the Runway, Inc.**
New York, NY
Common shares(3)
Subscription Fashion Rental 6/17/2020 339,191  5,153,945  2,418,856  0.66  %
Aventine Property Group, Inc.(12)
Chicago, IL
Common shares*** Cannabis REIT 9/11/2019 312,500  2,580,750  2,190,978  0.60  %
Commercial Streaming Solutions Inc. (d/b/a BettorView)(7)
Las Vegas, NV
Simple Agreement for Future Equity Interactive Media & Services 3/26/2021 1,002,720  1,000,000  0.27  %
Rebric, Inc. (d/b/a Compliable)(7)
Denver, CO
Preferred shares, Series Seed-4 Gaming Licensing 10/12/2021 2,064,409  1,002,755  1,000,000  0.27  %
Palantir Lending Trust SPV I **(11)
Palo Alto, CA
Equity Participation in Underlying Collateral(3)
Data Analysis 6/19/2020 —  —  930,524  0.26  %
True Global Ventures 4 Plus Pte Ltd**(8)
Singapore, Singapore
Limited Partner Fund Investment Venture Investment Fund 8/27/2021 713,505  670,000  0.18  %
YouBet Technology, Inc. (d/b/a PickUp)(7)
New York, NY
Preferred shares, Series Seed-2 Digital Media Technology 8/26/2021 385,353  502,232  499,999  0.14  %
Kahoot! ASA**(19)
Oslo, Norway
Common shares(3)
Education Software 12/5/2014 86,800  458,138  402,360  0.11  %
Churchill Sponsor VII LLC**(17)
New York, NY
Common share units Special Purpose Acquisition Company 2/25/2021 292,100  205,820  205,820  0.06  %
Warrant units 2/25/2021 277,000  94,180  94,180  0.03  %
Total 300,000  300,000  0.09  %
AltC Sponsor LLC**(17)
New York, NY
Share units Special Purpose Acquisition Company 7/21/2021 239,300  250,855  250,000  0.07  %
Churchill Sponsor VI LLC**(17)
New York, NY
Common share units Special Purpose Acquisition Company 2/25/2021 195,000  134,297  134,297  0.04  %
Warrant units 2/25/2021 199,100  65,703  65,703  0.02  %
   Total 200,000  200,000  0.06  %
Fullbridge, Inc. Cambridge, MA
Common shares Business Education 5/13/2012 517,917  6,150,506  —  —  %
Promissory Note 1.47%, Due 11/9/2021(4)(20)
3/3/2016 $ 2,270,458  2,270,858  —  —  %
Total 8,421,364  —  —  %
Treehouse Real Estate Investment Trust, Inc.(12)
Chicago, IL
Common shares*** Cannabis REIT 9/11/2019 312,500  4,919,250  —  —  %
Kinetiq Holdings, LLC Philadelphia, PA
Common shares, Class A Social Data Platform 3/30/2012 112,374  —  —  —  %
Total Non-controlled/Non-affiliate $ 146,360,300  $ 231,768,290  63.53  %
See accompanying notes to condensed consolidated financial statements.
11

SURO CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS - continued
December 31, 2021
Portfolio Investments* Headquarters/
Industry
Date of Initial Investment Shares/
Principal
Cost Fair Value % of Net
Assets
NON-CONTROLLED/AFFILIATE(1)
StormWind, LLC(5)
Scottsdale, AZ
Preferred shares, Series D 8% Interactive Learning 11/26/2019 329,337  $ 257,267  $ 621,093  0.17  %
Preferred shares, Series C 8% 1/7/2014 2,779,134  4,000,787  6,496,729  1.78  %
Preferred shares, Series B 8% 12/16/2011 3,279,629  2,019,687  4,423,607  1.21  %
Preferred shares, Series A 8% 2/25/2014 366,666  110,000  289,293  0.08  %
Total 6,387,741  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 Platform 8/23/2019 8,555,124  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 5/29/2022 5/29/2017 125,000  70,379  —  —  %
Preferred Warrant Series B, Strike Price $2.31, Expiration Date 12/31/2023 12/31/2018 250,000  5,080  5,000  0.01  %
Total 9,660,759  2,778,367  0.77  %
Ozy Media, Inc. Mountain View, CA
Preferred shares, Series C-2 6% Digital Media Platform 8/31/2016 683,482  2,414,178  —  —  %
Common Warrants, Strike Price $0.01, Expiration Date 4/9/2028 4/9/2018 295,565  30,647  —  —  %
Preferred shares, Series B 6% 10/3/2014 922,509  4,999,999  —  —  %
Preferred shares, Series A 6% 12/11/2013 1,090,909  3,000,200  —  —  %
Preferred shares, Series Seed 6% 11/2/2012 500,000  500,000  —  —  %
Total 10,945,024  —  —  %
Maven Research, Inc. San Francisco, CA
Preferred shares, Series C 8% Knowledge Networks 7/2/2012 318,979  2,000,447  —  —  %
Preferred shares, Series B 5% 2/28/2012 49,505  217,206  —  —  %
Total 2,217,653  —  —  %
Curious.com, Inc. Menlo Park, CA
Common shares Online Education 11/22/2013 1,135,944  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 Technology 3/24/2021 $ 10,000,000  $ 10,006,745  $ 10,000,000  2.74  %
Colombier Sponsor LLC**(17)
New York, NY
Class B Units Special Purpose Acquisition Company 4/1/2021 1,976,033  1,556,587  1,554,354  0.43  %
Class W Units 4/1/2021 2,700,000  1,159,150  1,157,487  0.32  %
Total 2,715,737  2,711,841  0.75  %
SPBRX, INC. (f/k/a GSV Sustainability Partners, Inc.) Cupertino, CA
Preferred shares, Class A(9)
Clean Technology 4/15/2014 14,300,000  7,151,412  1,047,033  0.29  %
Common shares 4/15/2014 100,000  10,000  —  —  %
Total 7,161,412  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

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

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



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.
Subsidiary Jurisdiction of
Incorporation
Formation
Date
Percentage
Owned
GCL Delaware April 13, 2012 100%
SuRo Capital Sports, LLC ("SuRo Sports") Delaware March 19, 2021 100%
Subsidiaries below are referred to collectively, as the “Taxable Subsidiaries”
GSVC AE Holdings, Inc. (“GAE”) Delaware November 28, 2012 100%
GSVC AV Holdings, Inc. (“GAV”) Delaware November 28, 2012 100%
GSVC SW Holdings, Inc. (“GSW”) Delaware November 28, 2012 100%
GSVC SVDS Holdings, Inc. (“SVDS”) Delaware August 13, 2013 100%

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



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:
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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

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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
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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.
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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.

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