Oxford Square Capital Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Oxford Square Capital Corp. has filed its 2023 annual report, detailing its financial status and compliance with SEC regulations.</b>

AI Summary

Oxford Square Capital Corp. (OXSQG) filed a Annual Report (10-K) with the SEC on March 19, 2024. Oxford Square Capital Corp. filed its annual report for the fiscal year ended December 31, 2023. The company is registered in Maryland and its principal executive offices are located in Greenwich, CT. Securities registered include Common Stock (OXSQ), 6.25% Notes due 2026 (OXSQZ), and 5.50% Notes due 2028 (OXSQG), all traded on NASDAQ. The filing confirms the company has met all reporting requirements for the preceding 12 months and 90 days. Oxford Square Capital Corp. has submitted all Interactive Data Files required by Rule 405 of Regulation S-T.

Why It Matters

For investors and stakeholders tracking Oxford Square Capital Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Oxford Square Capital Corp.'s financial performance, operational activities, and risk factors for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed disclosure of registered securities and their trading on NASDAQ offers insight into the company's capital structure and market presence, important for understanding its financing and investment strategies.

Risk Assessment

Risk Level: medium — Oxford Square Capital Corp. shows moderate risk based on this filing. The company's business involves investing in debt and equity securities, which carries inherent market and credit risks. Specific financial performance data for 2023 is not yet detailed in this header information, but the nature of its investments suggests potential volatility.

Analyst Insight

Investors should review the full 10-K filing to understand Oxford Square Capital Corp.'s financial performance, investment portfolio, and strategic outlook for 2024.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported fiscal year end date)
• 2024-03-19 — Filing Date (Date the 10-K was filed)
• 6.25% — Note Interest Rate (Interest rate for 6.25% Notes due 2026)
• 5.50% — Note Interest Rate (Interest rate for 5.50% Notes due 2028)

Key Players & Entities

• Oxford Square Capital Corp. (company) — Filer name
• NASDAQ (company) — Exchange where securities are registered
• 2023 (date) — Fiscal year end
• 2024-03-19 (date) — Filing date
• 2026 (date) — Maturity year for 6.25% Notes
• 2028 (date) — Maturity year for 5.50% Notes

FAQ

Risk Factors

• Investment Risks [high — financial]: The company's business involves investing in debt and equity securities, which are subject to various market, credit, and interest rate risks.
• Regulatory Compliance [medium — regulatory]: As a registered investment company, the company is subject to extensive regulation under the Investment Company Act of 1940 and other securities laws.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-19: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and operational overview of Oxford Square Capital Corp.)

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share OXSQ NASDAQ Global Select
• $2.65 — ed on the closing price on that date of $2.65 on the NASDAQ Global Select Market, was
• $5.0 million — We generally expect to invest between $5.0 million and $50.0 million in each of our portfo
• $50.0 million — pect to invest between $5.0 million and $50.0 million in each of our portfolio investments, a
• $64.4 million — ritten public offering of approximately $64.4 million in aggregate principal amount of our 6.
• $40.0 million — On July 24, 2023, the Company redeemed $40.0 million in aggregate principal amount of the 6.
• $10.0 million — eptember 11, 2023, the Company redeemed $10.0 million in aggregate principal amount of the 6.
• $7.0 million — November 3, 2023, the Company redeemed $7.0 million in aggregate principal amount of the 6.
• $7.4 million — 023, the Company redeemed the remaining $7.4 million aggregate principal amount of 6.50% Uns
• $44.8 million — ritten public offering of approximately $44.8 million in aggregate principal amount of our 6.
• $80.5 million — ritten public offering of approximately $80.5 million in aggregate principal amount of 5.50%
• $2.66 — common stock at a subscription price of $2.66 per share. Total proceeds, net of under
• $16.0 million — and offering costs, were approximately $16.0 million. Approximately 1.7 million shares of ou
• $150.0 million — ffer for sale, from time to time, up to $150.0 million of our common stock through an At -the-
• $8.0 million — es and offering costs was approximately $8.0 million during the year ended December 31, 2023

Filing Documents

• ea169968_10k.htm (10-K) — 11357KB
• ea169968_ex4-8.htm (EX-4.8) — 281KB
• ea169968_ex23-1.htm (EX-23.1) — 3KB
• ea169968_ex31-1.htm (EX-31.1) — 17KB
• ea169968_ex31-2.htm (EX-31.2) — 17KB
• ea169968_ex32-1.htm (EX-32.1) — 8KB
• ea169968_ex32-2.htm (EX-32.2) — 8KB
• ea169968_ex97-1.htm (EX-97.1) — 41KB
• tflowchart_001.jpg (GRAPHIC) — 169KB
• tlinechart_001.jpg (GRAPHIC) — 383KB
• 0001213900-24-023660.txt (&nbsp;) — 32472KB
• oxsq-20231231.xsd (EX-101.SCH) — 144KB
• oxsq-20231231_cal.xml (EX-101.CAL) — 37KB
• oxsq-20231231_def.xml (EX-101.DEF) — 399KB
• oxsq-20231231_lab.xml (EX-101.LAB) — 831KB
• oxsq-20231231_pre.xml (EX-101.PRE) — 397KB
• ea169968_10k_htm.xml (XML) — 7702KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 26 ITEM 1B. UNRESOLVED STAFF COMMENTS 57 ITEM 1C. Cybsersecurity 57 ITEM 2.

PROPERTIES

PROPERTIES 59 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 59 ITEM 4. MINE SAFETY DISCLOSURES 59 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 60 ITEM 6. [RESERVED] 64 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 64 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 81 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA F-1 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON ACCOUNTING AND FINANCIAL DISCLOSURE 83 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 83 ITEM 9B. OTHER INFORMATION 83 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 83 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 84 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 87 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 89 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 90 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 92 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 93 ITEM 16. FORM 10-K SUMMARY 95

SIGNATURES

SIGNATURES 96 i PART I

Business

Item 1. Business Oxford Square Capital Corp. ("OXSQ," "Company," "we," "us," or "our") is a closed -end , non -diversified management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). We have elected to be treated for U.S. federal income tax purposes as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code") beginning with our 2003 taxable year. Our investment objective is to maximize our portfolio's total return. Our primary current focus is to seek an attractive risk -adjusted total return by investing primarily in corporate debt securities and collateralized loan obligation ("CLO") structured finance investments that own corporate debt securities. CLO investments may also include warehouse facilities, which are early -stage CLO vehicles intended to aggregate loans that may be used to form the basis of a traditional CLO vehicle. We may also invest in publicly traded debt and/or equity securities. As a BDC, we may not acquire any asset other than "qualifying assets" unless, at the time we make the acquisition, the value of our qualifying assets represents at least 70% of the value of our total assets. Our capital is generally used by our corporate borrowers to finance organic growth, acquisitions, recapitalizations and working capital. Our investment decisions are based on extensive analysis of potential portfolio companies' business operations supported by an in -depth understanding of the quality of their recurring revenues and cash flow, variability of costs and the inherent value of their assets, including proprietary intangible assets and intellectual property. In making our CLO investments, we consider the indenture structure for that vehicle, its operating characteristics and compliance with its various indenture provisions, as well as its corporate loan -based collateral pool.

Business

Business industry and competitive analysis; assessment of likely exit strategies; and potential regulatory/legal issues. Financial condition detailed review of the historical financial performance and the quality of

View Full Filing

View this 10-K filing on SEC EDGAR