UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



xQUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarter ended June 30, 2015



oTRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Commission File Number: 333-173163



POINT CAPITAL, INC.

(Exact name of small business issuer
as specified in its charter)



| | Delaware                 |  | 27-3046338               | 
| | ------------------------ |  | ------------------------ | 
| | (State of incorporation) |  | (IRS Employer ID Number) | 



285 Grand Avenue

Building 5

Englewood, New Jersey 07631

(Address of
principal executive offices)



(201) 408-5126

(Issuer's telephone number)



________________________________________________________________

(Former name, former address and former
fiscal year, if changed since last report)



Check
whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. YesxNoo



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registration was required to submit and post such files).   
YesoNoo



Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of
“large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2
of the Exchange Act. (Check one):



|Large accelerated filero |  | Accelerated filero        
|------------------------ |  | --------------------------
|Non-accelerated filerx   |  | Smaller reporting companyo

(Do not check if a smaller reporting company)



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YesoNox



As of August 14, 2015, 50,582,441 shares of common stock,
par value $0.0001 per share, were outstanding.




















TABLE OF CONTENTS



|                                                                                              | Page
|--------------------------------------------------------------------------------------------- | ----
|PART I                                                                                        |     
|Item 1. Financial Statements                                                                  | 1   
|Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20  
|Item 3 Quantitative and Qualitative Disclosures About Market Risk                             | 25  
|Item 4 Controls and Procedures                                                                | 25  
|                                                                                              |     
|PART II                                                                                       |     
|Item 1. Legal Proceedings                                                                     | 25  
|Item 1A. Risk Factors                                                                         | 25  
|Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                           | 26  
|Item 3. Defaults Upon Senior Securities                                                       | 26  
|Item 4. Mine Safety Disclosures                                                               | 26  
|Item 5. Other Information                                                                     | 26  
|Item 6. Exhibits                                                                              | 26  













PART I

FINANCIAL INFORMATION



Item 1.Financial
Statements.





CONTENTS







|                                                                                                          | Page(s)
|--------------------------------------------------------------------------------------------------------- | -------
|                                                                                                          |        
|Consolidated Statements of Assets and Liabilities – As of June 30, 2015 (unaudited) and December 31, 2014 | 2      
|                                                                                                          |        
|Consolidated Statements of Operations (unaudited) – Three and Six months ended June 30, 2015 and 2014     | 3      
|                                                                                                          |        
|Consolidated Statement of Changes in Net Assets (unaudited) – Six months ended June 30, 2015 and 2014     | 4      
|                                                                                                          |        
|Consolidated Statements of Cash Flows (unaudited) – Six months ended June 30, 2015 and 2014               | 5      
|                                                                                                          |        
|Consolidated Schedule of Investments as of June 30, 2015 (unaudited)                                      | 6      
|                                                                                                          |        
|Consolidated Schedule of Investments as of December 31, 2014                                              | 7      
|                                                                                                          |        
|Notes to Consolidated Financial Statements (unaudited)                                                    | 9      







1









|Point Capital, Inc. and Subsidiary               
|-------------------------------------------------
|Consolidated Statements of Assets and Liabilities







|                                                                                                               |  | June 30, 2015 |            |   | December 31, 2014 |  
|-------------------------------------------------------------------------------------------------------------- |  | ------------- | ---------- | - | ----------------- | -
|                                                                                                               |  | (unaudited)   |            |   |                   |  
|                                                                                                               |  |               |            |   |                   |  
|ASSETS                                                                                                         |  |               |            |   |                   |  
|Investments at fair value                                                                                      |  |               |            |   |                   |  
|Non-controlled/Non-affiliated investments (cost $1,652,337 and $1,163,250)                                     |  | $             | 1,789,258  |   |                   | $
|Cash and cash equivalents                                                                                      |  |               | 1,035,755  |   |                   |  
|Interest receivable                                                                                            |  |               | 4,724      |   |                   |  
|Dividends receivable                                                                                           |  |               | 4,500      |   |                   |  
|Prepaid expenses                                                                                               |  |               | 29,601     |   |                   |  
|                                                                                                               |  |               |            |   |                   |  
|Total Assets                                                                                                   |  | $             | 2,863,838  |   |                   | $
|                                                                                                               |  |               |            |   |                   |  
|LIABILITIES                                                                                                    |  |               |            |   |                   |  
|Accounts payable and accrued expenses                                                                          |  | $             | 100        |   |                   | $
|                                                                                                               |  |               |            |   |                   |  
|Total Liabilities                                                                                              |  |               | 100        |   |                   |  
|                                                                                                               |  |               |            |   |                   |  
|Redeemable Series A, Convertible Preferred stock, $0.0001 par value, 5,000,000 shares                          |  |               |            |   |                   |  
|authorized, 1,000,000 shares designated; 4,000 shares issued and outstanding ($100 per share redemption value) |  |               | 400,000    |   |                   |  
|                                                                                                               |  |               |            |   |                   |  
|NET ASSETS                                                                                                     |  |               |            |   |                   |  
|Common stock, $0.0001 par value, 100,000,000 shares authorized;                                                |  |               |            |   |                   |  
|50,582,441 and 50,582,441 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively   |  |               | 5,058      |   |                   |  
|Additional paid-in capital                                                                                     |  |               | 3,736,690  |   |                   |  
|Accumulated net investment loss                                                                                |  |               | (133,442   | ) |                   |  
|Accumulated undistributed net realized loss on investments                                                     |  |               | (113,735   | ) |                   |  
|Unrealized appreciation (depreciation) on investments                                                          |  |               | 136,921    |   |                   |  
|Accumulated deficit                                                                                            |  |               | (1,167,754 | ) |                   |  
|                                                                                                               |  |               |            |   |                   |  
|Total Net Assets                                                                                               |  |               | 2,463,738  |   |                   |  
|                                                                                                               |  |               |            |   |                   |  
|Total Liabilities and Net Assets                                                                               |  | $             | 2,863,838  |   |                   | $
|                                                                                                               |  |               |            |   |                   |  
|Net Asset Value per common share                                                                               |  | $             | 0.05       |   |                   | $







See accompanying notes to unaudited consolidated
financial statements







2









|Point Capital, Inc. and Subsidiary   
|-------------------------------------
|Consolidated Statements of Operations
|(Unaudited)                          







|                                                                    |  | Three Months Ended
June 30, |         |   | Six Months Ended
June 30, |  
|------------------------------------------------------------------- |  | --------------------------- | ------- | - | ------------------------- | -
|                                                                    |  | 2015                        |         |   | 2014                      |  
|INVESTMENT INCOME:                                                  |  |                             |         |   |                           |  
|Interest and dividend income                                        |  |                             |         |   |                           |  
|Non-controlled/Non-affiliated investments                           |  | $                           | 5,186   |   |                           | $
|                                                                    |  |                             |         |   |                           |  
|EXPENSES:                                                           |  |                             |         |   |                           |  
|Professional fees                                                   |  |                             | 50,642  |   |                           |  
|Filing fees                                                         |  |                             | 1,330   |   |                           |  
|General and administrative expenses                                 |  |                             | 25,017  |   |                           |  
|                                                                    |  |                             |         |   |                           |  
|Total expenses                                                      |  |                             | 76,989  |   |                           |  
|                                                                    |  |                             |         |   |                           |  
|NET INVESTMENT LOSS                                                 |  |                             | (71,803 | ) |                           |  
|                                                                    |  |                             |         |   |                           |  
|NET REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS:             |  |                             |         |   |                           |  
|Net realized loss on investments                                    |  |                             |         |   |                           |  
|Non-controlled/Non-affiliated investments                           |  |                             | (17,790 | ) |                           |  
|Net change in unrealized appreciation (depreciation) on investments |  |                             |         |   |                           |  
|Non-controlled/Non-affiliated investments                           |  |                             | 105,697 |   |                           |  
|                                                                    |  |                             |         |   |                           |  
|Net realized and unrealized gain (loss) on investments              |  |                             | 87,907  |   |                           |  
|                                                                    |  |                             |         |   |                           |  
|NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS     |  | $                           | 16,104  |   |                           | $





See accompanying notes to unaudited consolidated
financial statements





3











|Point Capital, Inc. and Subsidiary              
|------------------------------------------------
|Consolidated Statements of Changes in Net Assets
|(Unaudited)                                     





|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  | Accumulated                                |          |   |             |   |          |         |  |   |          |  
|------------------------------------------------------------------- |  | --------------------- | ---------- |  | ---------- | - | ----- | ------------------- |  | - | ------------------------------------------ | - |  | ------------------------------------------ | -------- | - | ----------- | - | -------- | ------- |  | - | -------- | -
|                                                                    |  | Common Stock,         |            |  | Additional |   |       | Accumulated
    Net |  |   | Undistributed
    Net Realized Gain (Loss) |   |  | Unrealized Appreciation
    (Depreciation) |          |   |             |   |          |         | 
|                                                                    |  | $0.0001
    Par Value |            |  | Paid In    |   |       | Investment          |  |   | On                                         |   |  | on                                         |          |   | Accumulated |   |          |         | 
|                                                                    |  | Shares                |            |  | Amount     |   |       | Capital             |  |   | Loss                                       |   |  | Investments                                |          |   | Investments |   |          | Deficit |  |   | Total    |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Balance
    - December 31, 2013                                     |  |                       | 40,606,200 |  |            | $ | 4,061 |                     |  | $ | 2,919,449                                  |   |  | $                                          | (71,986  | ) |             | $ | 39,754   |         |  | $ | 65,143   |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Common stock
    issued ($0.20/share)                               |  |                       | 1,650,000  |  |            |   | 165   |                     |  |   | 329,835                                    |   |  |                                            | -        |   |             |   | -        |         |  |   | -        |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Shares issued
    for services                                      |  |                       | 6,126,240  |  |            |   | 613   |                     |  |   | 1,224,635                                  |   |  |                                            | -        |   |             |   | -        |         |  |   | -        |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Offering costs                                                      |  |                       | -          |  |            |   | -     |                     |  |   | (1,258,388                                 | ) |  |                                            | -        |   |             |   | -        |         |  |   | -        |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Net
    increase (decrease) in net assets resulting from operations |  |                       | -          |  |            |   | -     |                     |  |   | -                                          |   |  |                                            | (59,476  | ) |             |   | -        |         |  |   | 64,802   |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Balance
    - June 30, 2014 (Unaudited)                             |  |                       | 48,382,440 |  |            | $ | 4,839 |                     |  | $ | 3,215,531                                  |   |  | $                                          | (131,462 | ) |             | $ | 39,754   |         |  | $ | 129,945  |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Balance -
    December 31, 2014                                     |  |                       | 50,582,441 |  |            | $ | 5,058 |                     |  | $ | 3,686,486                                  |   |  | $                                          | -        |   |             | $ | -        |         |  | $ | (154,813 | )
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Stock-based compensation                                            |  |                       | -          |  |            |   | -     |                     |  |   | 50,204                                     |   |  |                                            | -        |   |             |   | -        |         |  |   | -        |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Net
    increase (decrease) in net assets resulting from operations |  |                       | -          |  |            |   | -     |                     |  |   | -                                          |   |  |                                            | (133,442 | ) |             |   | (113,735 | )       |  |   | 291,734  |  
|                                                                    |  |                       |            |  |            |   |       |                     |  |   |                                            |   |  |                                            |          |   |             |   |          |         |  |   |          |  
|Balance
    - June 30, 2015 (Unaudited)                             |  |                       | 50,582,441 |  |            | $ | 5,058 |                     |  | $ | 3,736,690                                  |   |  | $                                          | (133,442 | ) |             | $ | (113,735 | )       |  | $ | 136,921  |  





See accompanying notes to unaudited consolidated
financial statements







4









|Point Capital, Inc. and Subsidiary   
|-------------------------------------
|Consolidated Statements of Cash Flows
|(Unaudited)                          





|                                                                                                                        |  | Six Months Ended
June 30, |          
|----------------------------------------------------------------------------------------------------------------------- |  | ------------------------- | ---------
|                                                                                                                        |  | 2015                      |          
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                   |  |                           |          
|Net increase in net assets resulting from operations                                                                    |  | $                         | 44,557   
|Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: |  |                           |          
|Purchases of investments                                                                                                |  |                           | (801,214 
|Net realized loss on investments                                                                                        |  |                           | 113,735  
|Net change in unrealized appreciation on investments                                                                    |  |                           | (291,734 
|Proceeds from sale of investments                                                                                       |  |                           | 198,391  
|Stock options issued for services                                                                                       |  |                           | 50,204   
|(Increase) decrease in interest receivable                                                                              |  |                           | (2,344   
|Increase in dividend receivable                                                                                         |  |                           | (2,250   
|Decrease in accounts payable and accrued expenses and interest payable                                                  |  |                           | (2,454   
|Increase in prepaid expenses                                                                                            |  |                           | (10,656  
|Increase in investments in advance                                                                                      |  |                           | -        
|Net Cash Used In Operating Activities                                                                                   |  |                           | (703,765 
|                                                                                                                        |  |                           |          
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                   |  |                           |          
|Repayment of notes payable                                                                                              |  |                           | -        
|Proceeds from issuance of common stock                                                                                  |  |                           | -        
|Offering costs                                                                                                          |  |                           | -        
|Net Cash Provided By Financing Activities                                                                               |  |                           | -        
|                                                                                                                        |  |                           |          
|Net decrease in cash and cash equivalents                                                                               |  |                           | (703,765 
|                                                                                                                        |  |                           |          
|Cash and cash equivalents - Beginning of period                                                                         |  |                           | 1,739,520
|                                                                                                                        |  |                           |          
|Cash and cash equivalents - End of period                                                                               |  | $                         | 1,035,755
|                                                                                                                        |  |                           |          
|Supplemental Disclosures of Cash Flow Information:                                                                      |  |                           |          
|Interest paid                                                                                                           |  | $                         | -        
|Taxes Paid                                                                                                              |  | $                         | -        
|                                                                                                                        |  |                           |          
|Noncash Financing Activities                                                                                            |  |                           |          
|Issuance of stock options for services                                                                                  |  | $                         | 50,204   
|Offering costs                                                                                                          |  | $                         | -        
|Issuance of common stock for services                                                                                   |  | $                         | -        







See accompanying notes to unaudited consolidated
financial statements







5







|POINT CAPITAL, INC. AND SUBSIDIARY  
|------------------------------------
|CONSOLIDATED SCHEDULE OF INVESTMENTS
|June 30, 2015                       
|(Unaudited)                         





|Company                                         |  | Industry                          |  | Type ofInvestment                      |  | Principal/Shares |           |  | Cost |   |           | FairValue |  |   | % of NetAssets |  
|----------------------------------------------- |  | --------------------------------- |  | -------------------------------------- |  | ---------------- | --------- |  | ---- | - | --------- | --------- |  | - | -------------- | -
|Non-controlled/Non-affiliated investments       |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|CombiMatrix Corp.(2)                            |  | Life Sciences Tools & Services    |  | Warrants                               |  |                  | 38,835    |  |      | $ | 31,021    |           |  | $ | 59,469         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Pulmatrix Inc. (f/k/a Ruthigen Inc.) (1)(2)(3)  |  | Biotechnology                     |  | Common Stock                           |  |                  | 23,044    |  |      |   | 251,326   |           |  |   | 221,222        |  
|                                                |  |                                   |  | Series A Warrants                      |  |                  | 8,276     |  |      |   | 207       |           |  |   | 6,926          |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Arista Power, Inc. (1)                          |  | Electrical Components & Equipment |  | Series A Convertible Preferred Stock   |  |                  | 100,000   |  |      |   | 46,505    |           |  |   | 15,000         |  
|                                                |  |                                   |  | Warrants                               |  |                  | 750,000   |  |      |   | 53,495    |           |  |   | 20,428         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Cesca Therapeutics, Inc. (2)                    |  | Health Care Equipment             |  | Warrants                               |  |                  | 16,500    |  |      |   | 14,159    |           |  |   | 7,316          |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|PishPosh Inc.(1)(2)                             |  | Online Retail - Specialty Apparel |  | Convertible Preferred Stock            |  |                  | 150,000   |  |      |   | 149,988   |           |  |   | 89,126         |  
|                                                |  |                                   |  | Warrants                               |  |                  | 50,000    |  |      |   | 12        |           |  |   | 10             |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Bacterin Holdings International Inc.(2)         |  | Health Care Supplies              |  | Warrants                               |  |                  | 11,513    |  |      |   | 31,773    |           |  |   | 18,550         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Dejour Energy Inc. (2)                          |  | Oil & Gas Exploration             |  | Warrants                               |  |                  | 800,000   |  |      |   | 36,308    |           |  |   | 317            |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|iNeedMD Holdings, Inc. (1)(2)                   |  | Health Care Supplies              |  | Common Stock                           |  |                  | 25,000    |  |      |   | 795       |           |  |   | 795            |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Orbital Tracking Corp. (1)(2)                   |  | Communications Equipment          |  | Series C Convertible Preferred Stock   |  |                  | 200,000   |  |      |   | 100,000   |           |  |   | 100,000        |  
|                                                |  |                                   |  | Series D Convertible Preferred Stock   |  |                  | 100,000   |  |      |   | 50,000    |           |  |   | 50,000         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Optex Systems Holdings Inc. (1)(2)              |  | Aerospace & Defense               |  | Series B Convertible Prefered          |  |                  | 104,433   |  |      |   | 104,432   |           |  |   | 250,639        |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Vapor Corp. (1)                                 |  | Tobacco                           |  | 7% Convertible Debenture (Due 11/2015) |  | $                | 100,000   |  |      |   | 51,487    |           |  |   | 29,227         |  
|                                                |  |                                   |  | Warrants                               |  |                  | 90,909    |  |      |   | 48,513    |           |  |   | 28,929         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Actinium Pharmaceuticals Inc. (2)               |  | Biotechnology                     |  | Common Stock                           |  |                  | 39,000    |  |      |   | 126,111   |           |  |   | 103,350        |  
|                                                |  |                                   |  | Warrants                               |  |                  | 29,250    |  |      |   | 51,055    |           |  |   | 55,968         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|DatChat Inc. (1)(2)                             |  | Application Software              |  | Common Stock                           |  |                  | 2,000,000 |  |      |   | 100,150   |           |  |   | 100,150        |  
|                                                |  |                                   |  | 10% Debenture (Due 7/2015)             |  | $                | 30,000    |  |      |   | 30,000    |           |  |   | 30,000         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|MabVax Therapeutics Holdings Inc. (2)           |  | Biotechnology                     |  | Common Stock                           |  |                  | 133,333   |  |      |   | 69,326    |           |  |   | 228,906        |  
|                                                |  |                                   |  | Warrants                               |  |                  | 66,667    |  |      |   | 30,674    |           |  |   | 86,595         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Pershing Gold Corp.(2)                          |  | Mining Exploration                |  | Common Stock                           |  |                  | 17,094    |  |      |   | 90,035    |           |  |   | 90,113         |  
|                                                |  |                                   |  | Warrants                               |  |                  | 6,838     |  |      |   | 9,965     |           |  |   | 4,163          |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Provectus BioPharmaceuticals Inc.(2)            |  | Biotechnology                     |  | Common Stock                           |  |                  | 100,000   |  |      |   | 74,000    |           |  |   | 54,000         |  
|                                                |  |                                   |  | Warrants                               |  |                  | 100,000   |  |      |   | 1,000     |           |  |   | 21,840         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|ID Global Solutions Corporations                |  | Biometric Technology              |  | 10% ConvertibleDebenture (Due 7/2016)  |  | $                | 100,000   |  |      |   | 61,781    |           |  |   | 78,000         |  
|                                                |  |                                   |  | Warrants                               |  |                  | 2,200,000 |  |      |   | 38,219    |           |  |   | 38,219         |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Total Non-controlled/Non-affiliated investments |  |                                   |  |                                        |  |                  |           |  |      | $ | 1,652,337 |           |  | $ | 1,789,258      |  
|                                                |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Reconciliation to Net Assets:                   |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   |                |  
|Investments at fair value                       |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  | $ | 1,789,258      |  
|Cash and cash equivalents                       |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   | 1,035,755      |  
|Other current assets                            |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   | 38,825         |  
|Liabilities in excess of other assets           |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  |   | (400,100       | )
|Net Assets                                      |  |                                   |  |                                        |  |                  |           |  |      |   |           |           |  | $ | 2,463,738      |  











|(1) Securities are exempt from registration under Rule 144A promulgated under the Securities Act.                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) Securities are not income producing.                                                                                                                                   
|(3) Converted $101,530 in principal and interest into common
        shares.
        
        See accompanying notes to unaudited consolidated
        financial statements



6









|POINT CAPITAL, INC. AND SUBSIDIARY  
|------------------------------------
|CONSOLIDATED SCHEDULE OF INVESTMENTS
|December 31, 2014                   







|Company                                             |  | Industry                          |  | Type of Investment                      |  | Principal/Shares |         |  | Cost |   |           | Fair Value |  |   | % of  NetAssets |  
|--------------------------------------------------- |  | --------------------------------- |  | --------------------------------------- |  | ---------------- | ------- |  | ---- | - | --------- | ---------- |  | - | --------------- | -
|Non-controlled/Non-affiliated investments           |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Intercloud Systems, Inc. (1)(3)                     |  | IT Consulting & Other Services    |  | Common Stock                            |  |                  | 17,425  |  |      | $ | 108,875   |            |  | $ | 50,881          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|CombiMatrix Corp.(2)                                |  | Life Sciences Tools & Services    |  | Warrants                                |  |                  | 38,835  |  |      |   | 31,021    |            |  |   | 47,540          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Pulmatrix Inc. (f/k/a Ruthigen Inc.) (2)            |  | Biotechnology                     |  | Common Stock                            |  |                  | 20,690  |  |      |   | 149,796   |            |  |   | 72,415          |  
|                                                    |  |                                   |  | Series A Warrants                       |  |                  | 20,690  |  |      |   | 207       |            |  |   | 6,160           |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Arista Power, Inc. (1)                              |  | Electrical Components & Equipment |  | Series A Convertible Preferred Stock    |  |                  | 100,000 |  |      |   | 46,505    |            |  |   | 35,000          |  
|                                                    |  |                                   |  | Warrants                                |  |                  | 750,000 |  |      |   | 53,495    |            |  |   | 47,923          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Cesca Therapeutics, Inc. (2)                        |  | Health Care Equipment             |  | Common Stock                            |  |                  | 55,000  |  |      |   | 68,341    |            |  |   | 56,100          |  
|                                                    |  |                                   |  | Warrants                                |  |                  | 16,500  |  |      |   | 14,159    |            |  |   | 9,605           |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Musclepharm Corp. (2)(4)                            |  | Personal Products                 |  | Common Stock                            |  |                  | 2,500   |  |      |   | 22,500    |            |  |   | 21,250          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|PishPosh Inc.(1)(2)                                 |  | Online Retail - Specialty Apparel |  | Convertible Preferred Stock             |  |                  | 150,000 |  |      |   | 149,988   |            |  |   | 95,856          |  
|                                                    |  |                                   |  | Warrants                                |  |                  | 50,000  |  |      |   | 12        |            |  |   | 339             |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Bacterin Holdings International Inc.(2)             |  | Health Care Supplies              |  | Common Stock                            |  |                  | 23,026  |  |      |   | 99,475    |            |  |   | 69,769          |  
|                                                    |  |                                   |  | Warrants                                |  |                  | 11,513  |  |      |   | 31,773    |            |  |   | 17,383          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Dejour Energy Inc. (2)                              |  | Oil & Gas Exploration             |  | Warrants                                |  |                  | 800,000 |  |      |   | 36,308    |            |  |   | 25,369          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|iNeedMD Holdings, Inc.                              |  | Health Care Supplies              |  | Common Stock                            |  |                  | 25,000  |  |      |   | 795       |            |  |   | 795             |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Orbital Tracking Corp. (1)(2)                       |  | Communications Equipment          |  | Series C Convertible Preferred Stock    |  |                  | 200,000 |  |      |   | 100,000   |            |  |   | 100,000         |  
|                                                    |  |                                   |  | Series D Convertible Preferred Stock    |  |                  | 100,000 |  |      |   | 50,000    |            |  |   | 50,000          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Optex Systems Holdings Inc. (1)                     |  | Aerospace & Defense               |  | 12% Convertible Debenture (Due 11/2016) |  | $                | 100,000 |  |      |   | 100,000   |            |  |   | 179,520         |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Vapor Corp. (1)                                     |  | Tobacco                           |  | 7% Convertible Debenture (Due 11/2015)  |  | $                | 100,000 |  |      |   | 51,487    |            |  |   | 62,700          |  
|                                                    |  |                                   |  | Warrants                                |  |                  | 90,909  |  |      |   | 48,513    |            |  |   | 59,832          |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Total Non-controlled/Non-affiliated
    investments |  |                                   |  |                                         |  |                  |         |  |      | $ | 1,163,250 |            |  | $ | 1,008,437       |  
|                                                    |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Reconciliation to Net Assets:                       |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   |                 |  
|Investments at fair value                           |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  | $ | 1,008,437       |  
|Cash and cash equivalents                           |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   | 1,739,520       |  
|Other current assets                                |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   | 23,575          |  
|Liabilities in excess of
    other assets           |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  |   | (402,554        | )
|Net
    Assets                                      |  |                                   |  |                                         |  |                  |         |  |      |   |           |            |  | $ | 2,368,978       |  









|(1) Securities are exempt from registration under Rule 144A promulgated under the Securities Act.                        
|-------------------------------------------------------------------------------------------------------------------------
|(2) Securities are not income producing.                                                                                 
|(3) Converted $112,000 in principal and interest into common shares.                                                     
|(4) Security is subject to an 8 month (12.5%/month) bleed-out agreement. No more than 1,250 shares can be sold per month.







See accompanying notes to unaudited consolidated financial statements







7









|The following table shows the portfolio composition by industry grouping based on fair value at June 30, 2015 and December 31, 2014:
|------------------------------------------------------------------------------------------------------------------------------------





|                                  |  | June 30, 2015              |           |  | December 31,                   | 
|--------------------------------- |  | -------------------------- | --------- |  | ------------------------------ | 
|                                  |  | (unaudited)                |           |  | 2014                           | 
|Industry Classification           |  | Investments  at Fair Value |           |  | Percentage of  Total Portfolio | 
|IT Consulting & Other Services    |  | $                          | -         |  |                                | 
|Life Sciences Tools & Services    |  |                            | 59,469    |  |                                | 
|Biotechnology                     |  |                            | 778,807   |  |                                | 
|Biometric Technology              |  |                            | 116,219   |  |                                | 
|Electrical Components & Equipment |  |                            | 35,428    |  |                                | 
|Health Care Equipment             |  |                            | 7,316     |  |                                | 
|Personal Products                 |  |                            | -         |  |                                | 
|Online Retail - Specialty Apparel |  |                            | 89,136    |  |                                | 
|Health Care Supplies              |  |                            | 19,345    |  |                                | 
|Oil & Gas Exploration             |  |                            | 317       |  |                                | 
|Mining Exploration                |  |                            | 94,276    |  |                                | 
|Communications Equipment          |  |                            | 150,000   |  |                                | 
|Aerospace & Defense               |  |                            | 250,639   |  |                                | 
|Tobacco                           |  |                            | 58,156    |  |                                | 
|Application Software              |  |                            | 130,150   |  |                                | 
|                                  |  | $                          | 1,789,258 |  |                                | 







|See accompanying notes to unaudited consolidated financial statements
|---------------------------------------------------------------------





8









Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 1 - Organization and Business



Point Capital, Inc. (the “Company”),
was incorporated in the State of New York on July 13, 2010.







On October 4, 2013, the Company filed a Form
N-54A and elected to become a Business Development Company (“BDC”) under the Investment Company Act of 1940, as amended
(the “1940 Act”).







The Company’s investment objective is
to provide current income and capital appreciation. The Company intends to accomplish its objective by investing in the common
stock, preferred stock, warrants and convertible notes of small and mid-cap companies. The
Company’s investments are made principally through direct investments in prospective portfolio companies.  However,
the Company may also purchase securities in private secondary transactions. The Company to a lesser extent will also invest in
private companies that meet its investment objectives. The Company meets the definition of an investment company in accordance
with the guidance under Accounting Standards Codification Topic 946 “Financial Services – Investment
Companies.”



Note 2 - Summary of
Significant Accounting Policies



Basis of presentation and principles of
consolidation







The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America, ("U.S. GAAP").
On March 27, 2014, the Company formed a wholly-owned subsidiary, Hemp Funding, Inc., to invest in companies that are positioned
for growth in the legal cannabis industry. The subsidiary has not made any investments to date. The Company consolidates the subsidiary.
All intercompany transactions and balances have been eliminated. All adjustments (consisting of normal recurring items) necessary
to present fairly the Company’s financial position as of June 30, 2015, and the results of operations and cash flows for
the six months ended June 30, 2015 have been included. The results of operations for the six months ended June 30, 2015 are not
necessarily indicative of the results to be expected for the full year. The accounting policies and procedures employed in the
preparation of these consolidated financial statements have been derived from the audited financial statements of the Company for
the fiscal year ended December 31, 2014, which are contained in the Company’s Form 10-K as filed with the Securities
and Exchange Commission (“SEC”) on March 31, 2015. The consolidated balance sheet as of December 31, 2014,
contained herein, was derived from those consolidated financial statements.







Cash and Cash Equivalents



The Company considers all highly liquid investments
with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with high credit quality
financial institutions. The Company’s accounts at these institutions are insured by the Federal Deposit Insurance Corporation
(“FDIC”) up to $250,000. At June 30, 2015, the Company had bank balances exceeding the FDIC insurance limit on interest
bearing accounts. To reduce its risk associated with the failure of such financial institutions, the Company evaluates at least
annually the rating of the financial institutions in which it holds deposits.





9







Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 2 - Summary of
Significant Accounting Policies (continued)



Securities Transactions



Securities transactions
are recorded on a trade date basis. 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. The Company records
interest and dividend income on an accrual basis beginning on the trade settlement date or the ex-dividend date, respectively,
to the extent that the Company expects to collect such amounts. Commissions and other costs associated with transactions involving
securities, including legal costs, are included in the cost basis of purchases and deducted from the proceeds of sales.



Realized Gain or Loss and Net Change
in Unrealized Appreciation or Depreciation of Portfolio Investments



Realized gain or loss
is recognized when an investment is disposed of and is computed as the difference between the Company's cost basis and the net
proceeds received from such disposition without regard to unrealized appreciation or depreciation previously recognized.  Realized
gains and losses on investment transactions are determined by specific identification. Net change in unrealized appreciation or
depreciation is computed as the difference between the fair value of the investment and the cost basis of such investment, including
any reversal of previously recorded unrealized appreciation/depreciation when gains or losses are realized.



Valuation of Investments



The Company applies the accounting guidance
of Accounting Standards Codification Topic 820, “Fair Value Measurement and Disclosures” (“ASC 820”). This
guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.  When determining the fair value measurements for assets
and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which
it would transact business and considers assumptions that marketplace participants would use when pricing the asset or liability,
such as inherent risk, transfer restrictions, and risk of nonperformance.



The guidance also establishes a fair value
hierarchy for measurements of fair value as follows:



| | ● | Level 1 - quoted market prices in active markets for identical assets or liabilities.
| | - | -------------------------------------------------------------------------------------



| | ● | Level 2 -inputs other than quoted market prices that are observable, either directly or
indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets
or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or liabilities.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Level 3 - unobservable inputs for which little or no market activity exists, therefore
requiring an entity to develop its own assumptions.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------





10







Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 2 - Summary of Significant Accounting
Policies (continued)





Valuation of Investments (continued)





On a quarterly basis, The Board of Directors
(the “Board”) of the Company, in good faith, determines the fair value of investments in the following manner:



Equity securities which are listed on a recognized
stock exchange are valued at the closing trade price on the last trading day of the valuation period. For equity securities that
carry a restriction inherent to the security, a restriction discount is applied, as appropriate. Investments in warrants are valued
at fair value using the Black-Scholes option pricing model. Investments in securities which are convertible at a date in the future
are valued assuming a full conversion into common shares and valued based on the methodology for equity securities described above. 
Investments in unlisted securities are valued using a market approach net of the appropriate discount for lack of marketability.



Investments without a readily determined market
value are primarily valued using a market approach, an income approach, or both approaches, as appropriate. The market approach
uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities
(including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings)
to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those
future amounts. In following these approaches, the types of factors that the Company may take into account in fair value pricing
the Company's investments include, as relevant: available current market data, including relevant and applicable market trading
and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information
rights, the nature and realizable value of any collateral, the portfolio company's ability to make payments, its earnings and discounted
cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are
public, M&A comparables, and enterprise values, among other factors.



Because there is not a readily available market
value for some of the investments in its portfolio, the Company values substantially all of its portfolio investments at fair value
as determined in good faith by its board of directors, as described herein. 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. Additionally, the fair value of the Company's investments may differ significantly from the values that
would have been used had a ready market existed for such investments and may differ materially from the values that the Company
may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise
are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or
liquidation sale, the Company could realize significantly less than the value at which the Company has recorded it.





11







Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 2 - Summary of Significant Accounting
Policies (continued)



The following are the Company’s investments
owned by levels within the fair value hierarchy at June 30, 2015:



|                       |  | Level 1 |         |  | Level 2 |   |         | Level 3 |  |   | Total   | 
|---------------------- |  | ------- | ------- |  | ------- | - | ------- | ------- |  | - | ------- | 
|Common Stock           |  | $       | 378,572 |  |         | $ | -       |         |  | $ | 419,964 | 
|Convertible Preferred  |  |         | -       |  |         |   | 265,639 |         |  |   | 239,126 | 
|Convertible Debentures |  |         | -       |  |         |   | 29,227  |         |  |   | 78,000  | 
|Debenture              |  |         | -       |  |         |   | -       |         |  |   | 30,000  | 
|Warrants               |  |         | 21,840  |  |         |   | 197,903 |         |  |   | 128,987 | 
|Total Investments      |  | $       | 400,412 |  |         | $ | 492,769 |         |  | $ | 896,077 | 



The following are the Company’s investments
owned by levels within the fair value hierarchy at December 31, 2014:



|                       |  | Level 1 |         |  | Level 2 |   |         | Level 3 |  |   | Total   | 
|---------------------- |  | ------- | ------- |  | ------- | - | ------- | ------- |  | - | ------- | 
|Common Stock           |  | $       | 270,415 |  |         | $ | -       |         |  | $ | 795     | 
|Convertible Preferred  |  |         | -       |  |         |   | 35,000  |         |  |   | 245,856 | 
|Convertible Debentures |  |         | -       |  |         |   | -       |         |  |   | 242,220 | 
|Warrants               |  |         | -       |  |         |   | 153,979 |         |  |   | 60,172  | 
|Total Investments      |  | $       | 270,415 |  |         | $ | 188,979 |         |  | $ | 549,043 | 



The following additional disclosures relate
to the changes in fair value of the Company’s Level 3 investments during the six months ended June 30, 2015:



|Balance at January 1, 2015                                                                       |  | $ | 549,043 |  
|------------------------------------------------------------------------------------------------ |  | - | ------- | -
|Purchase of investments                                                                          |  |   | 434,593 |  
|Net change in unrealized appreciation on investments                                             |  |   | (87,559 | )
|Balance at June 30, 2015                                                                         |  | $ | 896,077 |  
|                                                                                                 |  |   |         |  
|Net change in unrealized appreciation in earnings relating to assets still held on June 30, 2015 |  | $ | 87,559  |  



Transfers between levels, if any, are recognized
at the beginning of the period in which transfers occur.





|Investment Type             |  | FairValue atJune 30, 2015 |         |  | Valuation Technique |                            | Unobservable inputs |                                                                         | Input
|--------------------------- |  | ------------------------- | ------- |  | ------------------- | -------------------------- | ------------------- | ----------------------------------------------------------------------- | -----
|Common Stock                |  | $                         | 100,945 |  |                     | Recent Transactions        |                     | N/A                                                                     |      
|Common Stock                |  | $                         | 228,906 |  |                     | Comparable market approach |                     | Restriction discount                                                    |      
|Common Stock                |  | $                         | 90,113  |  |                     | Comparable market approach |                     | Restriction discount                                                    |      
|Convertible Preferred Stock |  | $                         | 89,126  |  |                     | Comparable market approach |                     | Discount for lack of marketability(“DLOM”)
        Price/Sales Multiple |      
|Convertible Preferred Stock |  | $                         | 150,000 |  |                     | Recent Transactions        |                     | N/A                                                                     |      
|Convertible Debentures      |  | $                         | 78,000  |  |                     | Comparable market value    |                     | Restriction discount                                                    |      
|Debenture                   |  | $                         | 30,000  |  |                     | Recent Transaction         |                     | N/A                                                                     |      
|Warrants                    |  | $                         | 10      |  |                     | Comparable market approach |                     | DLOMPrice/Sales Multiple                                                |      
|Warrants                    |  | $                         | 86,595  |  |                     | Comparable market value    |                     | Restriction discount                                                    |      
|Warrants                    |  | $                         | 4,163   |  |                     | Comparable market value    |                     | Restriction discount                                                    |      
|Warrants                    |  | $                         | 38,219  |  |                     | Comparable market value    |                     | Restriction discount                                                    |      
|                            |  | $                         | 896,077 |  |                     |                            |                     |                                                                         |      







12







Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 2 - Summary of Significant Accounting
Policies (continued)





|Investment Type             |  | FairValue atDecember 31,2014 |         |  | ValuationTechnique |                            | Unobservableinputs |                      | Input
|--------------------------- |  | ---------------------------- | ------- |  | ------------------ | -------------------------- | ------------------ | -------------------- | -----
|Common Stock                |  | $                            | 795     |  |                    | Recent Transaction         |                    | N/A                  |      
|Convertible Preferred Stock |  | $                            | 95,856  |  |                    | Comparable market approach |                    | DLOM                 |      
|                            |  |                              |         |  |                    |                            |                    | Price/Sales Multiple |      
|Convertible Preferred Stock |  | $                            | 150,000 |  |                    | Recent Transaction         |                    | N/A                  |      
|Convertible Debentures      |  | $                            | 179,520 |  |                    | Comparable market value    |                    | Restriction discount |      
|Convertible Debentures      |  | $                            | 62,700  |  |                    | Comparable market value    |                    | Restriction discount |      
|Warrants                    |  | $                            | 340     |  |                    | Comparable market approach |                    | Price/Sales Multiple |      
|Warrants                    |  | $                            | 59,832  |  |                    | Comparable market value    |                    | Restriction discount |      
|                            |  | $                            | 549,043 |  |                    |                            |                    |                      |      



If the price multiple or sales multiple
were to increase or decrease, the fair value of the investments would increase or decrease, respectively. If the DLOM or restriction
discount were to increase or decrease, the fair value of the investments would decrease or increase, respectively.



Portfolio Company Investment Classification



The Company
classifies its portfolio company investments in accordance with the requirements of the 1940 Act.  Under the 1940 Act,
“Controlled Investments” are defined as investments in which the Company owns more than 25% of the voting securities
or has rights to nominate greater than 50% of the board representation.  Under the 1940 Act, “Affiliated Investments”
are defined as investments in which the Company owns between 5% and 25% of the voting securities.  Under the 1940 Act,
“Non-Controlled/Non-Affiliated Investments” are defined as investments that are neither Controlled Investments nor
Affiliated Investments.



At June 30, 2015 and December 31, 2014, the
Company did not have any Controlled or Affiliated investments.



Offering and Related Offering Costs



During the six months ended June 30, 2014,
the Company issued 1,650,000 shares of common stock for gross proceeds of $330,000 through a private capital raise.



Offering costs include any costs associated
with the offering of the Company’s shares.



During the six months ended June 30, 2014,
the Company incurred $33,140 in offering expenses to a third party placement agent (“Agent”) associated with capital
raising activities with gross proceeds of $330,000. The offering costs were paid to the Agent based upon a 7% fixed amount related
to gross proceeds raised. The Agent is also entitled to receive an additional amount up to 3% in a non-accountable expense allowance.





13









Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 2 - Summary of Significant Accounting
Policies (continued)



Offering and Related Offering Costs (continued)





In addition to the above offering costs, the
Agent was issued 6,126,240 shares of common stock as additional compensation for a maximum raise of $2,000,000. As of March 31,
2014, the Agent raised $2,305,000 and was entitled to 6,126,240 shares which have a fair value (based on $0.20/share price of the
private placement transactions) of $1,225,248 upon final closing. The fair value of these shares was recorded as a reduction of
offering proceeds upon issuance of the shares in March 2014.





The Company incurred $1,258,388 in offering
expenses for the six months ended June 30, 2014.





Use of Estimates









The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.



Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the financial statements, which management considered in formulating its estimate could change in the
near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from estimates.



Management
estimates expected term of share options and similar instruments, expected volatility of the Company’s common shares and
the method used to estimate it, expected annual rate of quarterly dividends, and risk free rate(s) to value share options and similar
instruments.







Stock-Based Compensation for Obtaining Employee
Services







The Company records compensation expense associated
with stock options and other forms of equity compensation in accordance with FASB ASC 718, “Compensation – Stock
Compensation.” Under the fair value recognition provision of FASB ASC Topic 718, stock-based compensation cost is estimated
at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the
Black-Scholes option pricing model.



In January 2015, the Company created an Option
Agreement in an effort to provide incentives to its independent directors. Under the provisions of the Option Agreement, if the
Company’s common shares are traded in one of the national exchanges, the grant-date share price of the Company’s
common stock will be used to measure the fair market value of the common shares issued. However, if the Company’s common
shares are thinly traded, the use of share prices established in its most recent private placement memorandum (“PPM”),
or weekly or monthly price observations would generally be more appropriate than the use of daily price observations as such shares
could be artificially inflated due to a larger spread between the bid and asked quotes and the lack of consistent trading in the
market.









14









Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 2 - Summary of Significant Accounting
Policies (continued)



Stock-Based Compensation for Obtaining Employee
Services (continued)



The Company estimates the fair value of share
options and similar instruments on the date of grant using a Black-Scholes option-pricing valuation model.



The compensation cost for an award of share-based
employee compensation is classified as equity recognized over the requisite service period, with a corresponding credit to equity
(generally, paid-in capital).



The Company made a policy decision to recognize
compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the
requisite service period for the entire award.



Income Taxes



For 2014, the Company intends to elect to be
treated for federal income tax purposes, and intends to qualify thereafter, as a RIC under Subchapter M of the Code. Generally,
a RIC is exempt from federal income taxes if it distributes at least 90% of ‘‘Investment Company Taxable Income,’’
as defined in the Code, each year. Dividends paid up to one year after the current tax year can be carried back to the prior tax
year for determining the dividends paid in such tax year. The Company intends to distribute sufficient dividends to maintain its
RIC status each year. The Company is also subject to nondeductible federal excise taxes if it does not distribute at least 98%
of net ordinary income each calendar year, 98.2% of capital gain net income for the one year period ending on October 31 of such
calendar year, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes.
The Company will generally endeavor each year to avoid any federal excise taxes.



The Company accounts for income taxes in accordance
with accounting guidance FASB ASC Topic 740, “Income Taxes,” which requires that the Company recognize deferred
tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax basis of assets
and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit
(expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when
it is more likely than not that some or all deferred tax assets will not be realized.



The Company evaluates
tax positions taken or expected to be taken in the course of preparing its tax returns to determine whether the tax positions are
“more-likely-than-not” of being sustained by the applicable tax authority.  Tax positions deemed to meet
a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the applicable period.  Although
the Company files federal and state tax returns, its major tax jurisdiction is federal.





15









Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 2 - Summary of Significant Accounting
Policies (continued)



Income Taxes (continued)



As of June 30, 2015
and December 31, 2014, the Company had not recorded a liability for any unrecognized tax positions.  Management’s
evaluation of uncertain tax positions may be subject to review and adjustment at a later date based upon factors including, but
not limited to, an on-going analysis of tax laws, regulations and interpretations thereof.  The Company’s policy
is to include interest and penalties related to income taxes, if applicable, in general and administrative expenses.



Note
3 -Redeemable Series A, Convertible Preferred Stock



In April 2013, the Company issued 4,000 shares
of Series A, Convertible Preferred Stock (the “Preferred Stock”) for $400,000. Holders of Preferred Stock vote together
with holders of Common Stock on an as-converted basis. Each share is currently convertible into 500 shares of common stock at the
option of the holder (subject to a 9.99% beneficial ownership limitation) based on a conversion formula (the Stated Value, currently
$100, divided by the Conversion Rate, currently $0.20.) The Conversion Rate may be adjusted upon the occurrence of stock dividends
or stock splits or subsequent equity sales at a price lower than the current conversion rate. Each share has a $100 liquidation
value. The holders of Preferred Stock are entitled to receive dividends on an as-converted basis if paid on Common Stock.







The Series A, Convertible Preferred Stock is
redeemable at the option of the holder upon the occurrence of certain “triggering events.” In case of a triggering
event, the holder has the right to redeem each share held for cash (currently $100/share) or impose a dividend rate on all of the
outstanding Preferred Stock at 6% per annum thereafter. A triggering event occurs if the Company fails to deliver certificates
representing conversion shares, fails to pay the amount due pursuant to a Buy-In, fails to have available a sufficient number of
authorized shares, fails to observe any covenant in the Certificate of Designation unless cured within 30 calendar days, shall
be party to a Change in Control Transaction, sustains a bankruptcy event, fails to list or quote its common stock for more than
20 trading days in a twelve-month period, sustains any monetary judgment, writ or similar final process filed against the Company
for more than $100,000 and such judgment writ or similar final process shall remain unvacated, unbonded or unstayed for a period
of 45 calendar days, or fails to comply with the Asset Coverage requirement.



Because certain of these “triggering
events” are outside the control of the Company, the Preferred Stock is classified within the temporary equity section of
the statement of assets and liabilities.



The Preferred Stock has forced conversion rights
where the Company may force the conversion of the Preferred Stock if certain conditions are met.







16







Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note
3 -Redeemable Series A, Convertible Preferred Stock (continued)



The Company may elect to redeem some
or all of the outstanding Preferred Stock for the Stated Value (currently $100/share) provided that proper notice is provided to
the holders and that a number of conditions (the “Equity Conditions”) have been met.



If any shares of Preferred Stock are outstanding
and the Company is a Business Development Company, the Company shall have asset coverage of at least 200% as of the close of business
on the last business day of a calendar quarter. If the Company fails to comply with this requirement and it is not cured on a timely
basis, the Company shall, to the extent permitted by the 1940 Act and Delaware law, proceed to redeem a sufficient number of shares
of Preferred Stock (at $100/share plus any unpaid dividends and distributions) to meet is asset coverage requirement.



Note 4 - Stock
Options







The Company entered into an agreement with
its independent directors to issue each independent director of the board 112,500 options for the first quarter of 2015 and 37,500
on the first day of each quarter going forward at a strike price equal to the then fair market value. Each option issuance vests
over a three-month period. On January 1, 2015, each independent director of the Company’s board was issued 112,500 five year
non-qualified options to purchase shares of the Company’s common stock at $0.30 for an aggregate of 337,500 options. Additionally,
on April 1, 2015, each independent director of the Company’s board was issued 37,500 five year non-qualified options to purchase
shares of the Company’s common stock at $0.30 for an aggregate of 112,500 options.



As of June 30, 2015, there are 450,000 options
exercisable. As of June 30, 2015, there was no unvested stock-based compensation expense to recognize. Total share-based compensation
expense recognized was $50,204 for the six months ended June 30, 2015. The aggregate intrinsic value at June 30, 2015 was $0 and
was calculated based on the difference between the Company’s share price established in its most recent PPM and the exercise
price of the underlying options.



To calculate the option-based compensation,
the Company used the Black-Scholes option-pricing model. The Company’s determination of fair value of option-based awards
on the date of grant using the Black-Scholes model is affected by the Company’s stock price as well as assumptions regarding
a number of subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility
over the term of the awards, risk-free interest rate, and the expected life of the options. The risk-free interest rate is based
on a treasury instrument whose term is consistent with the expected life of the stock options. The expected volatility, holding
period, and forfeitures of options are based on historical experience. To determine the fair value of the stock options, the Company
utilized a 1.61% risk-free rate and 40% volatility during the six months ended June 30, 2015.







17







Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note
5 -Financial Highlights



The following is a schedule of financial
highlights for the six months ended June 30, 2015 and 2014:



|Net asset value per common share data:                              |  | For the six months endedJune 30, |           
|------------------------------------------------------------------- |  | -------------------------------- | ----------
|                                                                    |  | 2015                             |           
|Net asset value per common share, beginning of period               |  | $                                | 0.05      
|Net investment loss                                                 |  |                                  | 0.00      
|Net realized gain (loss) on investments                             |  |                                  | 0.00      
|Net change in unrealized appreciation (depreciation) on investments |  |                                  | 0.00      
|Net increase (decrease) in net assets resulting from operations     |  |                                  | 0.00      
|Capital stock transactions:                                         |  |                                  |           
|Issuance of common stock                                            |  |                                  | 0.00      
|Offering costs from issuance of common stock                        |  |                                  | 0.00      
|Net increase in net assets from capital stock transactions          |  |                                  | 0.00      
|Net asset value per common share, end of period                     |  | $                                | 0.05      
|Ratios and supplemental data:                                       |  |                                  |           
|Per share market price, end of period (1)                           |  | $                                | 1.50      
|Total return (2)                                                    |  |                                  | 0.56      
|Common shares outstanding, end of period                            |  |                                  | 50,582,441
|Weighted average common shares outstanding during period            |  |                                  | 50,582,441
|Net assets, end of period                                           |  | $                                | 2,463,738 
|Annualized ratio of operating expenses to average net assets        |  |                                  | (12.32    
|Annualized ratio of net investment loss to average net assets       |  |                                  | (11.23    
|Portfolio Turnover                                                  |  |                                  | 8.41      



|1. |  | The shares of the Company's common stock were listed
in the OTC Market beginning January 5, 2012.  There was no market price for the shares as of June 30, 2014.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. |  | Total return is based on the change in net asset value
during the period, adjusted for the impact of capital stock transactions and related offering costs. Since there was no market
price for the six months ended June 30, 2014 and the shares were not actively traded in 2014 and for the six months ended June
30, 2015, total return based on stock price has not been presented for the six months ended June 30, 2015 and 2014.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Note 6 - Subsequent Events



On July 1, 2015, the Board granted each of
the three non-employee members of the Board non-qualified stock options to purchase up to 37,500 shares of the Company’s
common stock each for an aggregate of 112,500 stock options, which shall be at an exercise price of $.30 per share, the fair market
value of the Company’s common stock on the date of grant, expiring five years from the date of issuance. Such options shall
vest in equal amounts over a period of three months at the rate of 12,500 shares per month.







18







Point Capital, Inc. and Subsidiary

Notes to Unaudited Consolidated Financial
Statements

June 30, 2015



Note 6 - Subsequent
Events (continued)







On July 6, 2015, the Company invested $100,000
in Multimedia Platforms, Inc. (symbol: MMPW) for a 9% Convertible Debenture and 333,333 warrants exercisable at $0.75 per share.



On August 7, 2015, the Company invested $150,000
in Home Bistro, Inc., a private company, for a 15% Convertible Debenture. The Company is entitled to convertthe unpaid
face amount of this debenture and interest, any time following a closing date, at 75% of the pricing of Home Bistro, Inc.’s
next round of financing. Additionally, the Company is entitled to purchase warrants equal to 50% of the principal amount of debenture
at an exercise price equal to 150% of the pricing of the next round of financing of Home Bistro, Inc.





On August 7, 2015, the Company entered
into a Master Participation Agreement (the “Agreement”) with Capital Stack, LLC, a Nevada limited liability company
(“Capital Stack”). Pursuant to the Agreement, Capital Stack shall send offers to the Company to buy interests in future
purchased receivables without recourse from third party merchants. When the Company accepts an offer, the Company shall pay its
portion of the purchase price plus any upfront commissions. On each business day, Capital Stack shall pay to the Company its pro-rata
share of collections less any transaction expenses and fees to be paid to Capital Stack, and a 3% servicing fee.



19







Item 2.    Management’s Discussion
and Analysis of Financial Condition and Results of Operations



As used in this Form 10-Q, references
to “Point Capital,” Company,” “we,” “our” or “us” refer to Point Capital,
Inc. unless the context otherwise indicates.



Forward-Looking Statements



The following discussion should be read
in conjunction with our financial statements, which are included elsewhere in this Form 10-Q (the “Report”). This Report
contains forward-looking statements which relate to future events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,”
“anticipates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or the negative of these terms or other comparable terminology. These statements are only predictions and
involve known and unknown risks, uncertainties, and other factors that may cause our or our industry’s actual results, levels
of activity, performance or achievements to be materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.



While these forward-looking statements,
and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction
of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions
or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United
States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.



Overview



We
are a closed-end, non-diversified investment company that has elected to be regulated as a business development company under the
Investment Company Act of 1940, as amended (the “1940 Act”).  As a business development company, we are required
to comply with certain regulatory requirements.  For instance, we generally have to invest at least 70% of our total
assets in “qualifying assets,” including securities of private U.S. companies, cash, cash equivalents, U.S. government
securities and high-quality debt investments that mature in one year or less. For the 2015 tax year, we will elect to be treated
for tax purposes as a regulated investment company, or a RIC, under Subchapter M of the Internal Revenue Code of 1986, as amended
(the “Code”).



Investment Strategy



We will seek to invest
in companies that are asset rich and generating cash flow on a sustainable basis. Further, when identifying prospective portfolio
companies, we will seek the following attributes, which we believe will help us generate higher total returns with an acceptable
level of risk. These attributes are:



| | ● | Strong management teams with meaningful equity ownership. We will seek experienced management teams with an established track record of success in place or available. We will typically require the portfolio companies to have proper incentives to align management’s goals with ours. Generally, we will seek companies in which the management teams have significant equity interests.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Secure market positions that present attractive growth opportunities. We will seek companies that we believe possess advantages in scale, scope, customer loyalty, product pricing, or product quality versus their competitors, minimizing sales risk and generating margins that can be readily forecast.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Industries with favorable trends.We will seek industries with favorable industry trends and companies performing well within their industries and poised to benefit from a catalyst.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





20







| | ● | Investing in private companies. We may invest in start-up companies or companies with speculative business plans.  We may also consider companies that are underperforming compared to their potential due to structural impediments with opportunities to restructure and refocus strategy and resources.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Diversification. We will seek to diversify our portfolio among companies engaged in a variety of industries, thereby potentially reducing the risk of a downturn in any one industry having a disproportionate impact on the value of our portfolio. We cannot assure you that we will be successful in this regard.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Structure financing terms to limit down side risk.Originating our own lending opportunities through our network will permit us to structure loans to enhance the element of capital preservation for our stockholders.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Private equity sponsorship. Often we will seek to participate in transactions sponsored by what we believe to be high-quality private equity firms. Point Capital’s senior management team believes that a private equity sponsor’s willingness to invest significant sums of equity capital into a company provides an additional level of due diligence investigation and is an implicit endorsement of the quality of the investment. Further, by co-investing with quality private equity firms which commit significant sums of equity capital with junior priority to our future debt investments, we may benefit from having due diligence on our investments performed by both parties.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Viable exit strategy. We intend to focus our investment activity primarily in companies whose business models and growth prospects offer attractive exit possibilities, including repayment of our investments, with the potential for capital gain on any equity interest we hold through an initial public offering of common stock, a merger, a sale or other recapitalization. See “Investment Objectives and Strategy.”
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



We plan to be the
lead investor for transactions, as well as a co-investor with investment institutions for other transactions. Moreover, we may
acquire investments in the secondary loan market, and, in analyzing such investments, we will employ the same analytical process
that we use for our primary investments.



Portfolio
Update





As of June
30, 2015, we held seventeen portfolio companies all of which are non-controlled and non-affiliated investments.



ID Global Solution
Corp. (IDGS)On June 25, 2015, we completed an investment of $100,000 in a 10% Convertible Debenture and 2,200,000 warrants.
Each warrant is exercisable at an exercise price of $0.05. ID Global Solution Corp., an OTC BB listed company, is an international
biometrics and payment processing company with a unique technology platform that provides valuable, secure payment processing for
consumers as well as for merchants.



Provectus
BioPharmaceuticals Inc. (PVCT)On June 22, 2015, we completed an investment of $75,000 in 100,000 shares of common stock and
100,000 warrants. Each warrant is exercisable at an exercise price of $0.85. Provectus BioPharmaceuticals Inc., an NYSE listed
company,is a development-stage biopharmaceutical company that is primarily engaged in developing ethical pharmaceuticals
for oncology and dermatology indications. The company’s goal is to develop alternative treatments that are safer, more effective,
less invasive and more economical than conventional therapies.





21







Pershing
Gold Corp. (PGLC)On April 10, 2015, we completed an investment of $100,000 in 17,094 shares of common stock and 6,838 warrants.
Each warrant is exercisable at an exercise price of $7.92. Pershing Gold Corp., a Nasdaq listed company, operates as a gold exploration
company. The company seeks out and develops significant gold exploration and development properties in the state of Nevada.

MabVax
Therapeutics Holdings Inc. (MBVX)On April 6, 2015, we completed an investment of $100,000 in 133,333 shares of common stock
and 66,667 warrants. Each warrant is exercisable at $1.50. MabVax Therapeutics Holdings Inc., an OTC BB listed company, is a biopharmaceutical
company that discovers, develops, and commercializes small molecule drugs to treat serious diseases. The company's most advanced
product development programs are for the treatment of cancer and diabetes.



Pulmatrix
Inc. (f/k/a Ruthigen Inc.) (PULM) is a NASDAQ listed company.On March 21, 2014, we completed a $150,003 investment in 8,276
shares of Common Stock as well as 8,276 warrants. The exercise price of the warrants is $18.125 per share. On February 13, 2015,
we completed a $100,000 investment in a 5% Convertible Debenture. On June 30, 2015, $100,000 of principal and $1,530 of interest
converted into 14,768 shares of common stock. Pulmatrixfocuses on the discovery, development, and commercialization of
pharmaceutical-grade hypochlorous acid based therapeutics to prevent and treat infection in invasive applications.



DatChat
Inc.Between February 6, 2015 and April 2, 2015, we completed a $100,150 investment in 2,000,000 shares of common stock. DatChat
Inc. is a private company that develops mobile messaging applications as well as other intellectual property. Additionally, on
May 2015, we completed a $30,000 investment in a 10% Convertible Debenture which is convertible into DatChat common shares at $0.20
per share.



Actinium
Pharmaceuticals Inc. (ATNM)On February 6, 2015, we completed a $190,100 investment in 43,000 shares of common stock and 29,250
warrants. Actinium Pharmaceuticals Inc., a NYSE listed company, operates as a biopharmaceutical company. The company develops alpha
particle immunotherapeutic and other radiopharmaceuticals for select applications. The warrants are exercisable at $6.50. On May
26, 2015, we sold 4,000 of these shares of common stock.



Optex
Systems Holdings, Inc. (OPXS)On November 17, 2014, we completed a $100,000 investment in a 12% Convertible Debenture. Optex
Systems Holdings, Inc., an OTC BB listed company, manufactures optical sighting systems and assemblies primarily for Department
of Defense (DOD) applications. The Company also manufactures and delivers numerous periscope configurations, rifle and surveillance
sights and night vision optical assemblies. On March 26, 2015, $100,000 of principal and $4,433 of interest converted into 64.10
shares of Series B Convertible Preferred Stock which is convertible into 41,773,200 shares of OPXS common stock.



Vapor
Corp. (VPCO)On November 14, 2014, we completed a $100,000 investment in a 7% Convertible Debenture as well as 90,909 warrants.
Vapor Corp., a Nasdaq listed company, markets and distributes electronic cigarettes. The Company distributes electronic devices
that vaporize a liquid solution, which provides users an experience akin to smoking without actual combustion. The exercise price
of the warrants is $2.00 per share.



iNeedMD
Holdings, Inc. (NEMD)On October 15, 2014, we completed a $795 investment in 25,000 shares of Common Stock. iNeedMD Holdings
Inc. is an OTC BB listedholding company. The Company, through its subsidiaries, manufactures medical devices that acquires
and transmits health related data.



Orbital
Tracking Corp. (TRKK)On October 10, 2014, we completed a $150,000 investment in 200,000 shares of Series C Preferred Stock
and 100,000 shares of Series D Preferred Stock. Orbital Tracking Corp., an OTC BB listed company, provides satellite telecommunications
voice airtime, tracking devices and services, and ground station construction. The company provides mobile voice and data communications
services globally via satellite. Each shares of Series C Preferred convert into 10 shares
of common stock. Each shares of Series D Preferred convert into 20 shares of common
stock.



Dejour
Energy, Inc. (DEJ)On August 12, 2014, we completed a $200,000 investment in 800,000 shares of Common Stock as well
as 800,000 warrants. Dejour Energy, Inc., a NYSE listed company,is an independent oil and natural gas company operating
multiple exploration and production projects in North America's Piceance Basin and Peace River Arch regions. The
exercise price of the warrants is $0.35 per share. We currently hold 800,000 warrants.





22







Bacterin
International Holdings, Inc. (BONE)On August 1, 2014, we completed a $131,248 investment in 23,026 shares of Common
Stock as well as 11,513 warrants. Bacterin International Holdings, Inc., a NYSE listed company,produces human tissue for
orthopedic procedures. The company produces allografts of human calcellous bone which has been demineralized. Bacterin also produces
medical devices for orthopedic, plastic, and cardiovascular surgery; and antimicrobial coatings for medical devices.The exercise price of the warrants is $7.12 per share. We currently hold 11,513 warrants.



PishPosh,
Inc.On July 2, 2014, we made an investment of $150,000 in Convertible Preferred Stock and 50,000 warrants exercisable at $1.00
per share. The effective date of the investment is July 2, 2014. PishPosh, Inc. is a private company that operates a commerce platform
serving parents and grandparents of newborns, infants, and toddlers. $100,000 of the Convertible Preferred Stock is convertible
at $1.00 and $50,000 is convertible at $0.2666.



Cesca
Therapeutics, Inc.On June 13, 2014, we completed an $82,500 investment in 55,000 shares of Common Stock as well as
16,500 warrants. Cesca Therapeutics, Inc., a Nasdaq listed company, operates as a supplier of products targeting the worldwide
adult stem cell market.The company offers automated and semi-automated devices and single-use processing disposables that
enable the collection, processing and cryopreservation of stem cells and other cellular tissues from cord blood and bone marrow
used in regenerative medicine. The exercise price of the warrants is $1.55 per share. We currently hold 16,500 warrants.



Arista
Power, Inc.On June 30, 2014, we completed a $100,000 investment in 9% Convertible Preferred Stock as well as 750,000
warrants. Arista Power, Inc., an OTC BB listed company, develops and manufactures renewable power equipment. The company produces
wind turbines, solar energy systems, and custom-designed power management systems. The Preferred Stock is convertible into shares
of common stock at a conversion price equal to $0.20. The exercise price of the warrants is $0.25 per share.



CombiMatrix
Corp.On December19, 2013 we completed an $80,000 investment in Series D Convertible Preferred Stock and warrants.
CombiMatrix Corp., a Nasdaq-listed company, is a molecular diagnostics company specializing in DNA-testing services for development
disorders. The preferred stock was convertible to common stock at $2.06 per share. The exercise price of the warrants is $3.12
per share.We currently hold 38,835 warrants of CombiMatrix.



Results of Operations



For
the three and six months ended June 30, 2015, the principal measure of our financial performance was the net increase (decrease)
in our net assets resulting from operations, which includes (i) net investment income (loss), (ii) net realized gain (loss) on
investments, and (iii) net change in unrealized appreciation (depreciation) on investments.  Net investment income (loss)
is the difference between our income from interest, dividends, fees and other investment income and our operating expenses.  Net
realized gain (loss), if any, is the difference between the net proceeds from the disposition of portfolio company securities and
their stated cost.  Net unrealized appreciation (depreciation) from investments is the net change in the fair value of
our investment portfolio.



Net
Change in Unrealized Appreciation (Depreciation).As of June 30, 2015 and December 31, 2014, the cost basis in our portfolio
companies was $1,652,337 and $1,163,250 with a fair market value of $1,789,258 and $1,008,437, respectively. The net change in
unrealized appreciation (depreciation) for the three months ended June 30, 2015 and 2014 was $105,697 and $(401,343), respectively.
The net change in unrealized appreciation for the six months ended June 30, 2015 and 2014 was $291,734 and $64,802, respectively.



Investment
Income.  We recognize investment income on our investments which includes interest income from cash and cash equivalents,
interest from our convertible debenture investments, and dividend income from our convertible preferred investment. For the three
months ended June 30, 2015 and 2014, investment income amounted to $5,186 and $8,405, respectively. For the six months ended June
30, 2015 and 2014, investment income amounted to $12,842 and $11,409, respectively.





23







Net
Realized Loss.For the three and six months ended June 30, 2015, we realized a net loss from the partial sales of
our investments of $17,790 and $113,735, respectively. We did not have a comparable realized loss for the prior periods.



Operating Expenses.For
the three months ended June 30, 2015 and 2014, total operating expenses were $76,989 and $37,022, respectively. For the six months
ended June 30, 2015 and 2014, total operating expenses were $146,284 and $70,885, respectively. Operating expenses consisted mainly
of accounting fees, edgar fees related to SEC required filings, and the issuance of stock options. The increase in operating expenses
in both three and six month period is primarily attributable to the recognition of stock based compensation for options grants
to our independent directors.



Net Increase (Decrease) in Net
Assets Resulting from Operations.For the three months ended June 30, 2015 and 2014, the net increase (decrease)
in net assets resulting from operations was $16,104 and $(429,960), respectively. For the six months ended June 30, 2015 and 2014,
the net increase in net assets resulting from operations was $44,557 and $5,326, respectively,



Liquidity and Capital Resources



As of June 30, 2015,
the Company had $1,035,755 in cash and cash equivalents, compared to $1,739,520 as of December 31, 2014, a decrease of $703,765.
This decrease was primarily attributable to purchase of investments of approximately $801,000 offset by proceeds from the sale
of investments of $198,000 generated from the sale of certain investments in portfolio companies.



The Company believes
that our existing available cash will enable the Company to meet the working capital requirements for at least 12 months.



We currently have
no commitments with any person for any capital expenditures.



Off-Balance Sheet Arrangements



We have no off-balance
sheet arrangements.



Stock-Based Compensation for Obtaining Employee
Services



We
entered into an agreement with our directors to issue each independent director of the board 112,500 options for the first quarter
of 2015 and 37,500 on the first day of each quarter going forward at a strike price equal to the then fair market value. Each option
issuance vests over a 3-month period. On January 1, 2015, each independent director of the Company’s board was issued 112,500
five year non-qualified options to purchase shares of the Company’s common stock at $0.30. On April 1, 2015, each independent
director of the Company’s board was issued 37,500 five year non-qualified options to purchase shares of the Company’s
common stock at $0.30. As of June 30, 2015 there are 450,000 options
exercisable.

As of June
30, 2015, there was no unvested stock-based compensation expense to recognize. Total share-based compensation expense recognized
was $50,204 for the six months ended June 30, 2015. The aggregate intrinsic value at June 30, 2015 was $0 and was calculated based
on the difference between the Company’s share price established in its most recent private placement memorandum (“PPM”)
and the exercise price of the underlying options.

To calculate the
option-based compensation, the Company used the Black-Scholes option-pricing model. The Company’s determination of fair
value of option-based awards on the date of grant using the Black-Scholes model is affected by the Company’s stock price
as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the Company’s
expected stock price volatility over the term of the awards, risk-free interest rate, and the expected life of the options. The
risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options.
The expected volatility, holding period, and forfeitures of options are based on historical experience. To determine the fair
value of the stock options, the Company utilized a 1.61% risk-free rate and 40% volatility.



24







Item 3.    Quantitative and Qualitative
Disclosures about Market Risk.



During
the normal course of its business, the Company trades various financial instruments and enters into various financial transactions
where the risk of potential loss due to market risk, credit risk and other risks can equal or exceed the related amounts recorded.
The success of any investment activity is influenced by general economic conditions that may affect the level and volatility of
equity prices, interest rates and the extent and timing of investor participation in the markets for both equity and interest rate
sensitive investments. Unexpected volatility or illiquidity in
the markets in which the Company directly or indirectly holds positions could impair its ability to carry out its business and
could cause losses to be incurred.



Market risk represents
the potential loss that can be caused by increases or decreases in the fair value of investments resulting from market fluctuations.



Credit risk represents
the potential loss that would occur if counterparties fail to perform pursuant to the terms of their obligations. In addition to
its investments, the Company is subject to credit risk to the extent a custodian or broker with whom it conducts business is unable
to fulfill contractual obligations.



Item 4.    Controls and
Procedures.



Under the supervision
and with the participation of our management, our principal executive officer and principal financial officer included, we conducted
an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated
under the Securities Exchange Act of 1934, as amended, as of June 30, 2015. Based on this evaluation, our principal executive
officer and principal financial officer have concluded that our disclosure controls and procedures were ineffective at such time
to ensure that information required to be disclosed by us in the reports filed or submitted under the Securities Exchange Act
were recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s
rules and forms. Our principal executive officer and principal financial officer also concluded that our disclosure controls,
which are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities
Exchange Act is accumulated and communicated to management, was inappropriate to allow timely decisions regarding required disclosure.
Additionally, based on management’s assessment, the Company determined that there were material weaknesses in its internal
control over financial reporting as of June 30, 2015 as discussed in Item 9A. Controls and Procedures in our most recent 10-K
filing (filed on March 31, 2015).





Effective July 23, 2015, Adam Wasserman was appointed as
the Company’s Chief Financial Officer. Since 1999, Mr. Wasserman has been Chief Executive Officer for CFO Oncall, Inc. of
which he is the controlling stockholder. CFO Oncall provides chief financial officer services to various companies. We have begun
to take steps to improve our internal controls over financial reporting and to the extent possible, we will implement procedures
to assure that the initiation of transactions, the custody of assets and the recording of transactions will be performed by separate
individuals and to allow timely decisions regarding required disclosure.



Changes in Internal Controls over
Financial Reporting



There were no changes in our internal
controls over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.



PART II

OTHER INFORMATION



Item 1.    Legal Proceedings.



There are no pending
legal proceedings to which we are a party or in which any of our directors, officers or affiliates, any owner of record or beneficially
of more than 5% of any class of voting securities of our company, or security holder is a party adverse to us or has a material
interest adverse to us. Our property is not the subject of any pending legal proceedings.



Item 1A.  Risk
Factors



There have been no material changes
to our risk factors as previously disclosed in our most recent 10-K filing.





25







Item 2.     Unregistered Sales of
Equity Securities and Use of Proceeds.



Unregistered Sales of Equity Securities



On April 1, 2015,
the Board granted each of the three non-employee members of the Board non-qualified stock options to purchase up to 37,500 shares
of the Company’s common stock each for an aggregate of 112,500 stock options, which shall be at an exercise price of $.30
per share, the fair market value of the Company’s common stock on the date of grant, expiring five years from the date of
issuance. Such option shall vest in equal amounts over a period of three months at the rate of 12,500 shares per month. The
issuance of such securities was exempt from registration pursuant to Section 4(2) of the Securities Act and Regulation D promulgated
thereunder.



Item 3.     Defaults Upon Senior Securities.



Not applicable.



Item 4.     Mine Safety Disclosures.



Not applicable.



Item 5.     Other Information.



None



Item 6.Exhibits



|Exhibit No. |  | Description                                                                                
|----------- |  | -------------------------------------------------------------------------------------------
|            |  |                                                                                            
|31.1        |  | Rule 13a-14(a)/15d14(a) Certifications of Richard A Brand, the Principal Executive Officer*
|            |  |                                                                                            
|31.2        |  | Rule 13a-14(a)/15d14(a) Certifications of Adam Wasserman, the Principal Financial Officer* 
|            |  |                                                                                            
|32.1        |  | Section 1350 Certifications of Richard A. Brand, the Principal Executive Officer*          
|            |  |                                                                                            
|32.2        |  | Section 1350 Certifications of Adam Wasserman, the Principal Financial Officer*            



*Filed herewith.





26







SIGNATURES



Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.



|POINT CAPITAL, INC. |                                                                                      
|------------------- | -------------------------------------------------------------------------------------
|                    |                                                                                      
|By:                 | /s/ Richard A. Brand                                                                 
|                    | Name: Richard A. Brand                                                               
|                    | Title:   Chairman, Chief Executive Officer and Director (Principal Executive Officer)



|Dated: August 14, 2015 |                                                                              
|---------------------- | -----------------------------------------------------------------------------
|                       |                                                                              
|By:                    | /s/ Adam Wasserman                                                           
|                       | Name: Adam Wasserman                                                         
|                       | Title:   Chief Financial Officer (Principal Financial and Accounting Officer)



Dated: August 14, 2015





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