SuRo Capital Corp. Reports Third Quarter 2022 Financial Results
November 8, 2022
Net Asset Value of $7.83 Per Share as of September 30, 2022
NEW YORK, Nov. 08, 2022 (GLOBE NEWSWIRE) -- SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq:
SSSS) today announced its financial results for the quarter ended September 30, 2022. Net assets totaled approximately $221.8 million, or $7.83 pershare, at September 30, 2022 as compared to $9.24 per share at June 30, 2022 and $14.79 per share at September 30, 2021.
“As we previously mentioned, the first nine months of 2022 were the worst for equity markets in the past two decades. Simultaneously, there is acontinued dramatic slowdown in the IPO market, with less than 40 IPOs in the US during the third quarter and more than 60% of IPOs being
withdrawn, year to date. As macroeconomic challenges persist, we expect continued acceleration in the repricing of private securities. We are
beginning to see bid-ask spreads start to narrow as increased discounts are reflected in the asking prices of private securities on the secondary
markets. As a result, we believe continued pressure from declining macroeconomic conditions and the unfavorable IPO market will present compelling
opportunities in the secondary market. Our considerable cash and US treasuries position of approximately $140.0 million allows us to be opportunistic
in evaluating new, late stage, high-growth companies at increasingly compelling valuations,” said Mark Klein, Chairman and Chief Executive Officer of
SuRo Capital.
“SuRo Capital continues its commitment to shareholder value-enhancing initiatives. Given the discount our stock has traded at compared to net asset
value per share, we believe our active Share Repurchase Program and recent Modified Dutch Auction Tender Offer to be efficient and accretive
deployments of capital. During the third quarter we initiated and executed the Modified Dutch Auction Tender Offer, resulting in the purchase of 2.0
million shares of common stock for $6.60 per share. Year to date, in combination with the Board authorization of an additional $15.0 million to the
Share Repurchase Program, SuRo Capital has repurchased over 3.0 million shares of common stock with approximately $16.4 million remaining in
the Board-authorized Share Repurchase Program. Subsequent to quarter-end, the Board has extended the Share Repurchase Program throughOctober 31, 2023,” Klein concluded.
Investment Portfolio as of September 30, 2022
At September 30, 2022, SuRo Capital held positions in 39 portfolio companies – 32 privately held and 7 publicly held, some of which may be subject tocertain lock-up provisions – with an aggregate fair value of approximately $157.7 million, excluding US treasuries. The Company’s top five portfolio
company investments accounted for approximately 62% of the total portfolio at fair value as of September 30, 2022.
Top Five Investments as of September 30, 2022
Cost Basis
Portfolio Company($ in millions)

Fair Value% of Total
Portfolio

Course Hero, Inc.
Blink Health, Inc.
Orchard Technologies, Inc.
Architect Capital PayJoy SPV, LLC
StormWind, LLC$

15.0 $
15.0
10.5
10.0
6.4

56.7
10.8
10.5
10.0
9.7

35.9 %
6.8
6.7
6.3
6.2

Total

$

56.9 $

97.7

61.9 %

Third Quarter 2022 Investment Portfolio Activity
During the three months ended September 30, 2022, SuRo Capital funded the following new and follow-on investments (excluding US treasuries):
Portfolio Company
Xgroup Holdings Limited (d/b/a Xpoint)(1)
Orchard Technologies, Inc.(2)Forge Global, Inc.(3)Investment

Transaction Date

AmountConvertible Note

8/17/2022$1.0 million

Simple Agreement for Future Equity (SAFE)

9/2/2022$0.5 million

Common Shares

9/30/2022$0.9 million__________________(1) Investment made through SuRo Capital Sports, LLC.
(2) Represents a follow-on investment.
(3) On and effective August 5, 2022, SuRo Capital notified Forge Global, Inc. of its intent to net exercise via cashless settlement its 230,144 common
warrants in Forge Global, Inc. into 53,283 shares of Forge Global, Inc.'s public common stock, pursuant to the net exercise formula in the warrant
agreement. The exercise was effectuated on September 30, 2022.
During the three months ended September 30, 2022, SuRo Capital exited or received proceeds from the following investments:
Portfolio Company

Transaction

SharesAverage Net

Net

Realized

Date

Sold

Share Price(1)Proceeds

Gain/(Loss)

Various947,297$0.26$0.2 million($5.3 million)

NewLake Capital Partners, Inc.(3)Various15,310$17.37$0.3 million<($0.1 million)

Palantir Lending Trust SPV I(4)7/14/2022

N/A

N/A

$0.6 million$0.6 million

Rent The Runway, Inc.(5)Residential Homes For Rent, LLC (d/b/a Second
Avenue)(6)Various60,000$5.00$0.3 million($0.6 million)

Various

N/A

N/A$0.3 million$-

Rover Group, Inc.(7)Various257,192$4.09$1.1 million$0.3 million

Enjoy Technology, Inc.(2)__________________(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2) As of August 12, 2022, SuRo Capital had sold all its public common shares of Enjoy Technology, Inc.
(3) As of September 30, 2022, SuRo Capital held 232,133 remaining NewLake Capital Partners, Inc. public common shares.
(4) On July 14, 2022, a final payment was received for the remaining 512,290 Class A common shares of Palantir Technologies, Inc. that comprised
the beneficial equity interest in underlying shares. The realized gain from SuRo Capital's investment in Palantir Lending Trust SPV I is generated by
the proceeds from the sale of shares collateralizing the repaid promissory note to Palantir Lending Trust SPV I and attributable to the Equity
Participation in Underlying Collateral.
(5) As of September 30, 2022, SuRo Capital held 229,191 remaining Rent the Runway, Inc. public common shares.
(6) During the three months ended September 30, 2022, approximately $0.3 million was 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 $0.3 million repaid a portion of theoutstanding principal and the remaining was attributed to interest.
(7) As of September 30, 2022, SuRo Capital held 106,854 remaining Rover Group, Inc. public common shares.
Subsequent to quarter-end through November 8, 2022, SuRo Capital exited or received proceeds from the following investments (excluding US
treasuries):

Portfolio Company

Transaction
Date

SharesSold

Average Net
Share Price(1)Net
Proceeds

Realized
Gain/(Loss)

Rover Group, Inc.(2)Various106,854$3.93$0.4 million$0.1 million

Kahoot! ASA(3)10/19/2022

61,367$2.12$0.1 million($0.2 million)

Residential Homes For Rent, LLC (d/b/a Second Avenue)(4)10/31/2022

N/A

N/A

$0.1 million$-__________________(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2) As of October 11, 2022, SuRo Capital had sold all its public common shares of Rover Group, Inc.
(3) As of November 8, 2022, SuRo Capital held 38,305 public common shares of Kahoot! ASA, all of which are subject to lock-up restrictions.
(4) On October 31, 2022, approximately $0.1 million was 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 $0.1 million repaid a portion of the outstanding principal and theremaining was attributed to interest.
Third Quarter 2022 Financial Results
Quarter Ended
September 30, 2022

Quarter Ended
September 30, 2021

$ in millions

per share(1)$ in millions

per share(1)Net investment loss$(3.8)$(0.13)$(2.2)$(0.08)

Net realized gain/(loss) on investments(5.1)(0.17)

32.5

0.93

Net change in unrealized appreciation/(depreciation) of investments(37.0)(1.24)(15.0)(0.61)Net increase/(decrease) in net assets resulting from operations – basic(2)$(45.9)$(1.54)

$15.2

$0.24

Dividends declared--(59.8)(2.25)

Issuance of common stock from stock dividend

-

-

30.2

0.22

Repurchase of common stock(3)(13.2)

0.11--

Stock-based compensation

0.7

0.02

0.5

0.02

$(58.4)$(1.41)$(13.8)$(1.77)

Increase/(decrease) in net asset value(2)__________________

(1) Based on basic weighted-average number of shares outstanding for the relevant period.
(2) Total may not sum due to rounding.
(3) Includes 2,000,000 shares repurchased via the Modified Dutch Auction Tender Offer at a price of $6.60 per share.
Weighted-average common basic shares outstanding were approximately 29.8 million and 27.6 million for the quarters ended September 30, 2022,
and 2021, respectively. As of September 30, 2022, there were 28,333,661 shares of the Company’s common stock outstanding.
SuRo Capital’s liquid assets were approximately $154.3 million as of September 30, 2022, consisting of cash, US Treasuries, and securities of publicly
traded portfolio companies not subject to lock-up restrictions at quarter-end.
Modified Dutch Auction Tender Offer
On August 1, 2022, our Board of Directors authorized a Modified Dutch Auction Tender Offer (“Tender Offer”) to purchase up to 2.0 million shares ofour common stock at a price per share between $6.00 and $7.00, using available cash. In accordance with the Tender Offer, on September 12, 2022,
the Company repurchased 2,000,000 shares, at a price of $6.60 per share representing 6.6% of its outstanding shares. The per share purchase priceof properly tendered shares represents 71.4% of net asset value per share as of June 30, 2022.
Share Repurchase Program
Since inception of the Share Repurchase Program in August 2017, SuRo Capital has repurchased over 5.8 million shares of its common stock for an
aggregate purchase price of approximately $38.6 million.
On March 13, 2022, the Company’s Board of Directors authorized a $15.0 million expansion of the Share Repurchase Program to $55.0 million. Yearto date, under the Share Repurchase Program, the Company repurchased 1,008,676 shares of its common stock for approximately $8.3 million. The
dollar value of shares that may yet be purchased by the Company under the Share Repurchase Program is approximately $16.4 million. The Share
Repurchase Program is authorized through October 31, 2023.
Under the Share Repurchase Program, the Company may repurchase its outstanding common stock in the open market provided it complies with theprohibitions under its insider trading policies and procedures and the applicable provisions of the Investment Company Act of 1940, as amended, andthe Securities Exchange Act of 1934, as amended.
Conference Call and Webcast
Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET) on November 8, 2022. The conference call accessnumber for U.S. participants is 866-580-3963, and the conference call access number for participants outside the U.S. is +1 786-697-3501. The
conference ID number for both access numbers is 7689121. Additionally, interested parties can listen to a live webcast of the call from the "Investor
Relations" section of SuRo Capital’s website at www.surocap.com. An archived replay of the webcast will also be available for 12 months following thelive presentation.
A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on November 15, 2022 by dialing 866-583-1035 (U.S.) or +44 (0) 20
8196 1480 (International) and using conference ID number 7689121.
Forward-Looking Statements
Statements included herein, including statements regarding SuRo Capital's beliefs, expectations, intentions, or strategies for the future, may constitute"forward-looking statements". SuRo Capital cautions you that forward-looking statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected or implied in these statements. All forward-looking statements involve a number ofrisks and uncertainties, including the impact of the COVID-19 pandemic and any market volatility that may be detrimental to our business, our portfolio
companies, our industry, and the global economy, that could cause actual results to differ materially from the plans, intentions, and expectations
reflected in or suggested by the forward-looking statements. Risk factors, cautionary statements, and other conditions which could cause SuRo
Capital's actual results to differ from management's current expectations are contained in SuRo Capital's filings with the Securities and Exchange
Commission. SuRo Capital undertakes no obligation to update any forward-looking statement to reflect events or circumstances that may arise after
the date of this press release.
About SuRo Capital Corp.
SuRo Capital Corp. (Nasdaq: SSSS) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The
fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide
investors with access to such companies through its publicly traded common stock. SuRo Capital is headquartered in New York, NY and has offices in
San Francisco, CA. Connect with the company on Twitter, LinkedIn, and at www.surocap.com.
Contact
SuRo Capital Corp.
(212) 931-6331
IR@surocap.com
Media Contact
Bill Douglass
Gotham Communications, LLC
Communications@surocap.com
SURO CAPITAL CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
September 30,
2022

December 31, 2021

ASSETS
Investments at fair value:Non-controlled/non-affiliate investments (cost of $148,024,855 and $146,360,300, respectively)
Non-controlled/affiliate investments (cost of $41,140,804 and $41,211,183, respectively)$

Controlled investments (cost of $19,883,894 and $19,883,894, respectively)
Total Portfolio Investments
Investments in U.S. Treasury bills (cost of $99,173,075 and $0, respectively)
Total Investments (cost of $308,222,628 and $207,455,377, respectively)
Cash
Proceeds receivable
Escrow proceeds receivable
Interest and dividends receivable
Deferred financing costs

131,739,945
12,310,601
13,697,346$

231,768,290
14,609,089
13,758,874

157,747,892
99,226,000

260,136,253—

256,973,892
39,652,608—
653,791
119,608
572,771

260,136,253
198,437,078
52,493
2,046,645
83,655
621,719

Prepaid expenses and other assets(1)889,174

937,984

298,861,844

462,315,827

Accounts payable and accrued expenses(1)Accrued interest payable
Dividends payable

3,431,394—
349,929875,047
175,000
23,390,048

6.00% Notes due December 30, 2026(2)Total Liabilities

73,296,910

73,029,108

77,078,233

97,469,203

Total Assets
LIABILITIES$Net Assets

NET ASSETS
Common stock, par value $0.01 per share (100,000,000 authorized; 28,333,661 and 31,118,556 issued
and outstanding, respectively)$
Paid-in capital in excess of par
Accumulated net investment loss
Accumulated net realized gain on investments, net of distributions
Accumulated net unrealized appreciation/(depreciation) of investments

221,783,611$

364,846,624

283,337
330,271,551(61,969,423)
4,446,871(51,248,725)$

311,185
350,079,409(50,124,597)
11,899,742
52,680,885

Net Assets$

221,783,611$

364,846,624

Net Asset Value Per Share

$

7.83

$

11.72

__________________________________________________(1) This balance includes a right of use asset and corresponding operating lease liability, respectively.
(2) As of September 30, 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 $75,000,000.
SURO CAPITAL CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended September 30,
2022
INVESTMENT INCOME
Non-controlled/non-affiliate investments:
Interest income
Dividend income
Non-controlled/affiliate investments:
Dividend income
Controlled investments:$

Nine Months Ended September 30,

2021

26,747
107,764—$2022

138,072
275,844$2021

338,484
429,758——$

450,768
426,688
102,632

Interest income

385,000

110,000

1,225,000

110,000

Total Investment Income
OPERATING EXPENSES
Compensation expense

519,511

523,916

1,993,242

1,090,088

1,836,808

1,500,061

5,456,771

4,139,263

161,661
565,4111,202,748
74,497
487,619368,281604,475—(1,975)276,552

514,055
2,916,583
3,630,301
82,2381,238,120

590,781
2,107,158
504,793
7,648
841,241

Directors’ fees (1)Professional fees
Interest expense
Income tax expense
Other expenses
Total Operating Expenses
Net Investment Loss
Realized Gain/(Loss) on Investments:

4,328,744

2,747,394

13,838,068

8,190,884(3,809,233)(2,223,478)(11,844,826)(7,100,796)

Non-controlled/non-affiliated investments
Non-controlled/affiliate investments
Net Realized Gain/(Loss) on Investments
Change in Unrealized Appreciation/(Depreciation) of
Investments:
Non-controlled/non-affiliated investments
Non-controlled/affiliate investments
Controlled investments
Net Change in Unrealized
Appreciation/(Depreciation) of Investments(5,141,097)—

30,601,821
1,893,839(3,940,668)(70,379)

170,413,151
1,893,839(5,141,097)

32,495,660(4,011,047)

172,306,990(34,763,904)(1,866,488)(321,528)

9,252,577(24,389,188)
112,833(101,639,973)(2,228,109)(61,528)(6,078,092)(2,727,465)
207,194(36,951,920)

Net Change in Net Assets Resulting from Operations $(15,023,778)(103,929,610)(8,598,363)(45,902,250)$

15,248,404$(119,785,483)$

156,607,831

Net Change in Net Assets Resulting from Operations
per Common Share:
Basic

$

(1.54)$

0.55$(3.92)$

6.39

Diluted(2)$(1.54)$

0.55$(3.92)$

6.11

Weighted-Average Common Shares Outstanding
Basic
Diluted(2)29,781,801

27,619,062

30,542,611

24,506,181

29,781,801

27,619,062

30,542,611

25,705,099______________________________(1) For the three and nine months ended September 30, 2022 and the three months ended September 30, 2021, there were no potentially dilutive
securities outstanding. For the nine months ended September 30, 2021, 0 potentially dilutive common shares were excluded from the weightedaverage common shares outstanding for diluted net increase in net assets resulting from operations per common share.
SURO CAPITAL CORP. AND SUBSIDIARIESFINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Ended September 30,
2022
Per Basic Share Data
Net asset value at beginning of the year$

Net investment loss(1)Net realized gain/(loss) on investments(1)Net change in unrealized
appreciation/(depreciation) of investments(1)Dividends declaredIssuance of common stock from stock dividend
Issuance of common stock from public offering(1)Issuance of common stock from conversion of 4.75%
Convertible Notes due 2023(1)

9.24

$

Total return based on net asset value(2)Shares outstanding at end of period
Ratios/Supplemental Data:
Net assets at end of period
Average net assets

$
$

11.72

$

15.14
(0.29)(0.17)

0.93(0.13)

7.03(1.24)——(0.61)(2.25)
0.22(3.40)(0.11)—(0.35)(5.25)
0.38

—

—

0.01

—

—

—

—

(1.91)

0.02

Total return based on market value(2)$(0.39)

Stock-based compensation(1)Per share market value at end of period

16.56

2021

(0.08)

0.11
$

$

2022

(0.13)

Repurchase of common stock(1)Net asset value at end of period

Nine Months Ended September 30,

2021

0.02

7.83

$

14.79

$

3.87

$

12.91

$

0.08

—

0.05

0.04

7.83

$

14.79

3.87

$

12.91

(39.53 )%30.46%(68.91 )%71.32%(15.26 )%28,333,661

2.90%
28,781,016(32.25 )%28,333,661

32.36%
28,781,016

221,783,611
278,994,914$$

425,766,489
427,927,307$$

221,783,611
340,160,110$$

425,766,489
389,106,239

Ratio of net operating expenses to average net assets(3)

5.14%

2.41%

4.89%

2.81%

Ratio of net investment loss to average net assets(3)(4.66 )%
0.85%

(1.92 )%
10.03%(4.52 )%
3.47%

(2.43 )%
23.93%

Portfolio Turnover Ratio________________(1) Based on weighted-average number of shares outstanding for the relevant period.
(2) Total return based on market value is based upon the change in market price per share between the opening and ending market values per sharein the period, adjusted for dividends and equity issuances. Total return based on net asset value is based upon the change in net asset value per sharebetween the opening and ending net asset values per share in the period, adjusted for dividends and equity issuances.
(3) Because the ratios are calculated for the Company’s common stock taken as a whole, an individual investor’s ratios may vary from these ratios.