SARATOGA INVESTMENT CORP.

Previous wording

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under “Note About Forward-Looking Statements” and Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2026.

Current wording

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under “Note About Forward-Looking Statements” and Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended February 28, 2026 and Part II, Item 1A, “Risk Factors,” of this Quarterly Report on Form 10-Q.

Previous wording

We and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, where we provided $43.75 million and TJHA provided $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed-rate of 10.0% per annum and is due and payable in full on October 20, 2033. As of May 31, 2026, our and TJHA’s investment in SLF JV consisted of an unsecured note of $17.6 million and $2.5 million, respectively; and membership interest of $19.2 million and $2.7 million, respectively. As of February 28, 2026, our and TJHA’s investment in SLF JV consisted of an unsecured note of $17.6 million and $2.5 million, respectively; and membership interest of $19.2 million and $2.7 million, respectively. As of May 31, 2026 and February 28, 2026, our investment in the unsecured note of SLF JV had a fair value of $15.7 million and $16.1 million, respectively, and our investment in the membership interests of SLF JV had a fair value of $5.0 million and $1.5 million, respectively.

Current wording

We and TJHA have committed to provide up to a combined $50.0 million of financing to SLF JV through cash contributions, where we provided $43.75 million and TJHA provided $6.25 million, resulting in an 87.5% and 12.5% ownership between the two parties. The financing is issued in the form of an unsecured note and equity. The unsecured note will pay a fixed-rate of 10.0% per annum and is due and payable in full on October 20, 2033. As of August 31, 2026, our and TJHA’s investment in SLF JV consisted of an unsecured note of $17.6 million and $2.5 million, respectively; and membership interest of $19.2 million and $2.7 million, respectively. As of February 28, 2026, our and TJHA’s investment in SLF JV consisted of an unsecured note of $17.6 million and $2.5 million, respectively; and membership interest of $19.2 million and $2.7 million, respectively. As of August 31, 2026 and February 28, 2026, our investment in the unsecured note of SLF JV had a fair value of $15.5 million and $16.1 million, respectively, and our investment in the membership interests of SLF JV had a fair value of $4.1 million and $1.5 million, respectively.

Previous wording

During the three months ended May 31, 2026, we invested $79.2 million in new and existing portfolio companies and had $48.4 million in aggregate amount of exits and repayments, including $47.8 million of proceeds from sales and repayments of debt and equity investments in the current period and $0.6 million of additional proceeds from sales of equity investments realized in a prior period, resulting in net investments of $30.8 million for the period. During the three months ended May 31, 2025, we invested $50.1 million in new and existing portfolio companies and had $64.3 million in aggregate amount of exits and repayments resulting in net repayments of $(14.2) million for the period.

Current wording

During the six months ended August 31, 2026, we invested $155.3 million in new and existing portfolio companies and had $87.5 million in aggregate amount of exits and repayments, including $86.9 million of proceeds from sales and repayments of debt and equity investments in the current period and $0.6 million of additional proceeds from sales of equity investments realized in a prior period, resulting in net investments of $67.8 million for the period. During the six months ended August 31, 2025, we invested $102.3 million in new and existing portfolio companies and had $94.9 million in aggregate amount of exits and repayments resulting in net investments of $7.4 million for the period.

Previous wording

At May 31, 2026, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of $0.0 million and constituted 0.0% of our portfolio. This investment constitutes a first loss position in a portfolio that, as of May 31, 2026 and February 28, 2026, was composed of $361.1 million and $391.0 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of May 31, 2026, we also own $9.4 million in aggregate principal of the F-2-R-3 Notes in the Saratoga CLO, which only rank senior to the subordinated notes, and had a fair value of $0.0 million.

Current wording

At August 31, 2026, our investment in the subordinated notes of Saratoga CLO, a collateralized loan obligation fund, had a fair value of $0.0 million and constituted 0.0% of our portfolio. This investment constitutes a first loss position in a portfolio that, as of August 31, 2026 and February 28, 2026, was composed of $337.5 million and $391.0 million, respectively, in aggregate principal amount of primarily senior secured first lien term loans. In addition, as of August 31, 2026, we also own $9.4 million in aggregate principal of the F-2-R-3 Notes in the Saratoga CLO, which only rank senior to the subordinated notes, and had a fair value of $0.0 million.

Previous wording

We do not consolidate the Saratoga CLO portfolio in our consolidated financial statements. Accordingly, the metrics below do not include the underlying Saratoga CLO portfolio investments. However, at May 31, 2026, $323.3 million or 98.2% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and three Saratoga CLO portfolio investments were in default with a fair value of $5.9 million. At February 28, 2026, $348.3 million or 98.4% of the Saratoga CLO portfolio investments in terms of market value had a CMR color rating of green or yellow and one of the Saratoga CLO portfolio investments were in default with a fair value of $0.9 million. For more information relating to the Saratoga CLO, see the audited financial statements for Saratoga in our Annual Report on Form 10-K for the fiscal year ended February 28, 2026.

Current wording

We do not consolidate the Saratoga CLO portfolio in our consolidated financial statements. Accordingly, the metrics below do not include the underlying Saratoga CLO portfolio investments. However, at August 31, 2026, $301.6 million or 98.3% of the Saratoga CLO portfolio investments in terms of market value had a CMR (as defined below) color rating of green or yellow and one Saratoga CLO portfolio investments were in default with a fair value of $0.2 million. At February 28, 2026, $348.3 million or 98.4% of the Saratoga CLO portfolio investments in terms of market value had a CMR color rating of green or yellow and one of the Saratoga CLO portfolio investments were in default with a fair value of $0.9 million. For more information relating to the Saratoga CLO, see the audited financial statements for Saratoga in our Annual Report on Form 10-K for the fiscal year ended February 28, 2026.

Previous wording

Operating results for the three months ended May 31, 2026 and May 31, 2025 was as follows:

Current wording

Operating results for the three and six months ended August 31, 2026 and August 31, 2025 was as follows:

Previous wording

The composition of our investment income for three months ended May 31, 2026 and May 31, 2025 was as follows:

Current wording

The composition of our investment income for three and six months ended August 31, 2026 and August 31, 2025 was as follows:

Previous wording

For the three months ended May 31, 2026, total investment income decreased $1.5 million, or 4.8%, to $30.8 million from $32.3 million for the three months ended May 31, 2025. Interest income from investments increased $0.1 million, or 0.4%, to $28.1 million for the three months ended May 31, 2026 from $28.0 million for the three months ended May 31, 2025. Interest income from investments increased primarily due to an increase of $158.0 million, or 16.3%, in total investments, from $968.3 million at May 31, 2025 to $1,126.3 million as of May 31, 2026, partially offset by a decrease in the weighted average current yield on investments to 9.8%, down from 10.6% at May 31, 2025, primarily due to the reduction in SOFR base rates during this period, as well as the tightening of spreads in the middle market.

Current wording

For the three months ended August 31, 2026, total investment income increased $0.5 million, or 1.8%, to $31.2 million from $30.6 million for the three months ended August 31, 2025. Interest income from investments increased $2.4 million, or 9.2%, to $28.8 million for the three months ended August 31, 2026 from $26.4 million for the three months ended August 31, 2025. Interest income from investments increased primarily due to an increase of $154.9 million, or 15.6%, in total investments from $995.3 million at August 31, 2025 to $1,150.2 million as of August 31, 2026, partially offset by a decrease in the weighted average current yield on investments to 9.9%, down from 10.4% at August 31, 2025, primarily due to the reduction in SOFR base rates during this period, as well as the tightening of spreads in the middle market resulting in new originations being done at lower rates than assets repaid.

Previous wording

For the three months ended May 31, 2026 and May 31, 2025, total PIK income was $0.8 million and $0.8 million, respectively.

Current wording

For the three and six months ended August 31, 2026 and August 31, 2025, total PIK income was $0.7 million and $1.4 million, respectively and $0.8 million and $1.6 million, respectively.

Previous wording

For the three months ended May 31, 2026 and May 31, 2025, interest from cash and cash equivalents was $0.5 million and $2.0 million, respectively. The decrease of $1.5 million was due to decreased cash and cash equivalents balances during the three months ended May 31, 2026 as compared to the three months ended May 31, 2025, reflecting the significant levels of originations experienced during the three months ended May 31, 2026 and prior to that.

Current wording

For the three months ended August 31, 2026 and August 31, 2025, interest from cash and cash equivalents was $0.4 million and $2.4 million, respectively. The decrease of $2.0 million was due to decrease cash and cash equivalents balances during this period as compared to last year, reflecting the significant levels of purchases experienced during this period.

Previous wording

Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended May 31, 2026 and May 31, 2025, total management fee income was $0.5 million and $0.7 million, respectively. The reduction reflects the reduction of the asset levels in the Saratoga CLO as it is currently in winddown mode.

Current wording

Management fee income reflects the fee income received for managing the Saratoga CLO. For the three months ended August 31, 2026 and August 31, 2025, total management fee income was $0.1 million and $0.7 million, respectively. For the six months ended August 31, 2026 and August 31, 2025, total management fee income was $0.6 million and $1.4 million, respectively. The reduction reflects the reduction of the asset levels in the Saratoga CLO as it is currently in winddown mode, as well as subordinated management fees not earned for part of the period as the CLO went into non-compliance.

Previous wording

For the three months ended May 31, 2026 and May 31, 2025, total dividend income was $0.8 million and $1.0 million, respectively. Dividends received is recorded in the consolidated statements of operations when earned, and the decrease primarily reflects lower dividend income received on non-control/non-affiliate investments, partially offset by higher dividend income received on our membership interest in SLF JV during the three months ended May 31, 2026 as compared to the three months ended May 31, 2025.

Current wording

For the three and six months ended August 31, 2026 and August 31, 2025, total dividend income was $1.1 million and $1.0 million, respectively and $1.9 million and $2.0 million. Dividends received is recorded in the consolidated statements of operations when earned.

Previous wording

For the three months ended May 31, 2026 and May 31, 2025, total structuring and advisory fee income was $0.7 million and $0.3 million, respectively. Structuring and advisory fee income represents fee income earned and received performing certain investment and advisory activities during the closing of new investments.

Current wording

For the three and six months ended August 31, 2026 and August 31, 2025, total structuring and advisory fee income was $0.6 million and $0.2 million, respectively and $1.2 million and $0.5 million. Structuring and advisory fee income represents fee income earned and received performing certain investment and advisory activities during the closing of new investments, which were higher this year than last year.

Previous wording

For the three months ended May 31, 2026 and May 31, 2025, other income was $0.1 million and $0.3 million, respectively. Other income primarily includes prepayment, monitoring and amendment fees and is recorded in the consolidated statements of operations when earned.

Current wording

For the three and six months ended August 31, 2026 and August 31, 2025, other income was $0.1 million and $0.0 million, respectively and $0.3 million and $0.3 million, respectively. Other income includes origination fees, monitoring and amendment fees and prepayment fees and is recorded in the consolidated statements of operations when earned.

Previous wording

The composition of our operating expenses for the three months ended May 31, 2026 and May 31, 2025 was as follows:

Current wording

The composition of our operating expenses for the three and six months ended August 31, 2026 and August 31, 2025 was as follows:

Previous wording

For the three months ended May 31, 2026, total operating expenses increased $1.0 million, or 4.5%, compared to the three months ended May 31, 2025.

Current wording

For the three months ended August 31, 2026, total operating expenses increased $2.3 million, or 10.8%, compared to the three months ended August 31, 2025. For the six months ended August 31, 2026, total operating expenses increased $3.3 million, or 7.6%, compared to the six months ended August 31, 2025.

Previous wording

For the three months ended May 31, 2026, interest and debt financing expenses increased $1.2 million, or 9.6%, compared to the three months ended May 31, 2025. The increase is primarily attributable to an increase of 0.5% in average outstanding debt from $792.8 million for the three months ended May 31, 2025 to $796.7 million for the three months ended May 31, 2026, combined with an increase in the weighted average interest rate on our outstanding indebtedness from 5.58% to 6.13%, reflecting the full-period impact of the refinancing of certain indebtedness that took place in the previous quarter.

Current wording

For the three months ended August 31, 2026, interest and debt financing expenses increased $1.7 million, or 13.7%, compared to the three months ended August 31, 2025. The increase is primarily attributable to an increase of 4.4% in average outstanding debt from $788.4 million for the three months ended August 31, 2025 to $822.9 million for the three months ended August 31, 2026. For the six months ended August 31, 2026, interest and debt financing expenses increased $2.9 million, or 11.6% compared to the six months ended August 31, 2025. The increase is primarily attributable to an increase of 2.4% in average outstanding debt from $790.6 million for the six months ended August 31, 2025 to $809.8 million for the six months ended August 31, 2026.

Previous wording

As of May 31, 2026 and February 28, 2026, the SBA debentures represented 26.1% and 21.6% of overall debt, respectively.

Current wording

As of August 31, 2026 and February 28, 2026, the SBA debentures represented 23.6% and 21.6% of overall debt, respectively.

Previous wording

For the three months ended May 31, 2026, base management fees increased $0.6 million, or 14.7%, from $4.3 million to $5.0 million compared to the three months ended May 31, 2025. The increase in base management fees results from the 14.7% increase in the average value of our total assets, less cash and cash equivalents, from $982.4 million for the three months ended May 31, 2025 to $1,126.8 million for the three months ended May 31, 2026.

Current wording

For the three months ended August 31, 2026, base management fees increased $0.7 million, or 15.8%, from $4.4 million to $5.1 million compared to the three months ended August 31, 2025. The increase in base management fees results from the 15.8% increase in the average value of our total assets, less cash and cash equivalents, from $991.7 million for the three months ended August 31, 2025 to $1,148.5 million for the three months ended August 31, 2026.

Previous wording

For the three months ended May 31, 2026, incentive management fees decreased $0.6 million to $1.9 million, or 25.4%, compared to $2.5 million for the three months ended May 31, 2025. The incentive fee on income decreased from $2.5 million to $1.9 million for the three months ended May 31, 2025 and 2026, respectively, reflecting the decrease in net investment income during the three months ended May 31, 2026 as compared to the three months ended May 31, 2025. The incentive fee on capital gains remained $0.0 million for both the three months ended May 31, 2026 and May 31, 2025, reflecting no incentive fee on net realized and unrealized depreciation recognized during both these periods, with the liability floor capped at zero.

Current wording

For the three months ended August 31, 2026, incentive management fees decreased $0.4 million to $1.8 million, or 19.5%, compared to $2.3 million the three months ended August 31, 2025. The incentive fee on income decreased from $2.3 million to $1.8 million for the three months ended August 31, 2025 and 2026, respectively, reflecting the decrease in net investment income during the three months ended August 31, 2026 as compared to the three months ended August 31, 2025. The incentive fee on capital gains remained unchanged at $0.0 million for both the three months ended August 31, 2025 and August 31, 2026, reflecting no incentive fee on net realized and unrealized depreciation recognized during both these periods, with the liability floor capped at zero.

Previous wording

For the three months ended May 31, 2026, professional fees decreased $0.2 million, or 24.0% compared to the three months ended May 31, 2025.

Current wording

For the three months ended August 31, 2026, professional fees decreased $0.02 million, or 3.5% compared to the three months ended August 31, 2025.

Previous wording

For the three months ended May 31, 2026, administrator expenses increased $0.1 million, or 8.0% compared to the three months ended May 31, 2025, reflecting the contractual changes to the administrator agreement cap.

Current wording

For the three months ended August 31, 2026, administrator expenses increased $0.1 million, or 5.2% compared to the three months ended August 31, 2025, reflecting the contractual changes to the administrator agreement cap.

Previous wording

For the three months ended May 31, 2026, general and administrative expenses decreased $0.05 million, or 7.0% compared to the three months ended May 31, 2025.

Current wording

For the three months ended August 31, 2026, general and administrative expenses increased $0.3 million, or 65.0% compared to the three months ended August 31, 2025.

Previous wording

As discussed above, the increase in interest and debt financing expenses for the three months ended May 31, 2026 compared to the three months ended May 31, 2025 is primarily attributable to an increase in the overall average dollar amount of outstanding debt. For the three months ended May 31, 2026 and May 31, 2025, the average borrowings outstanding under the Encina Credit Facility was $0.0 million and $32.5 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Encina Credit Facility was 0.00% and 8.86%, respectively. For the three months ended May 31, 2026 and May 31, 2025, the average borrowings outstanding under the Live Oak Credit Facility was $37.5 million and $32.4 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Live Oak Credit Facility was 7.83% and 8.50%, respectively. For the three months ended May 31, 2026 and May 31, 2025, the average borrowings outstanding under the Valley Credit Facility was $32.5 million and $0.0 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Valley Credit Facility was 6.66% and 0.00%, respectively. For the three months ended May 31, 2026 and May 31, 2025, the average borrowings outstanding of SBA debentures was $203.2 million and $170.0 million, respectively. For the three months ended May 31, 2026 and May 31, 2025, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 3.60% and 3.04%, respectively. For the three months ended May 31, 2026 and May 31, 2025, the average borrowings outstanding of our Notes Payable was $523.5 million and $557.9 million, respectively. For the three months ended May 31, 2026 and May 31, 2025, the weighted average interest rate on the Notes Payable was 6.96% and 6.00%, respectively.

Current wording

As discussed above, the increase in interest and debt financing expenses for the three months ended August 31, 2026 compared to the three months ended August 31, 2025 is primarily attributable to an increase in the overall average dollar amount of outstanding debt. For the three months ended August 31, 2026 and August 31, 2025, the average borrowings outstanding under the Encina Credit Facility was $0.0 million and $32.5 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Encina Credit Facility was 0.0% and 8.9%, respectively. For the three months ended August 31, 2026 and August 31, 2025, the average borrowings outstanding under the Live Oak Credit Facility was $37.5 million and $37.5 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Live Oak Credit Facility was 7.83% and 8.5%, respectively. For the three months ended August 31, 2026 and August 31, 2025, the average borrowings outstanding under the Valley Credit Facility was $32.5 million and $0.0 million, respectively, and the average weighted average interest rate on the outstanding borrowing under the Valley Credit Facility was 6.65% and 0.00%, respectively. For the three months ended August 31, 2026 and August 31, 2025, the average borrowings outstanding of SBA debentures was $213.0 million and $170.0 million, respectively. For the three months ended August 31, 2026 and August 31, 2025, the weighted average interest rate on the outstanding borrowings of the SBA debentures was 3.64% and 3.04%, respectively. For the three months ended August 31, 2026 and August 31, 2025, the average borrowings outstanding of our Notes Payable was $539.9 million and $546.4 million, respectively. For the three months ended August 31, 2026 and August 31, 2025, the weighted average interest rate on the Notes Payable was 6.93% and 5.96%, respectively.

Previous wording

The weighted average dollar amount of our unsecured notes for the three months ended May 31, 2026 and May 31, 2025 was as follows:

Current wording

The weighted average dollar amount of our unsecured notes for the three and six months ended August 31, 2026 and August 31, 2025 was as follows:

Previous wording

For the three months ended May 31, 2026 and May 31, 2025, there were income tax expense (benefits) of ($0.02) million and $0.05 million, respectively. This relates to net deferred federal and state income tax expense (benefit) with respect to operating gains and losses and income derived from equity investments held in entities that are treated as corporations for U.S. federal income tax purposes, as well as current U.S. federal and state income taxes on those operating gains and losses when realized.

Current wording

For the three and six months ended August 31, 2026 and August 31, 2025, there were income tax expense (benefits) of $0.05 million and ($0.01) million, respectively and $0.03 million and $0.04 million. This relates to net deferred federal and state income tax expense (benefit) with respect to operating gains and losses and income derived from equity investments held in entities that are treated as corporations for U.S. federal income tax purposes, as well as current U.S. federal and state income taxes on those operating gains and losses when realized.

Previous wording

For the three months ended May 31, 2026, we had $48.4 million of sales, repayments, exits or restructurings resulting in $0.2 million of net realized gains.

Current wording

For the three months ended August 31, 2026, we had $39.1 million of sales, repayments, exits or restructurings resulting in $2.1 million of net realized gains. For the six months ended August 31, 2026, we had $87.5 million of sales, repayments, exits or restructurings resulting in $2.2 million of net realized gains.

Previous wording

The most significant cumulative net change in realized gains (losses) for the three months ended May 31, 2026 were the following (dollars in thousands):

Current wording

The most significant cumulative net change in realized gains (losses) for the six months ended August 31, 2026 were the following (dollars in thousands):

Previous wording

The $0.5 million of net realized loss was from our investment in TG Pressure Washing Holdings LLC, which was written off during the period.

Current wording

The $0.5 million of net realized losses was from our investment in TG Pressure Washing Holdings LLC, which was written off during the period.

Previous wording

For the three months ended May 31, 2025, we had $64.3 million of sales, repayments, exits or restructurings resulting in $2.9 million of net realized gains.

Current wording

For the three months ended August 31, 2025, we had $29.8 million of sales, repayments, exits or restructurings resulting in $0.05 million of net realized gains. For the six months ended August 31, 2025, we had $94.9 million of sales, repayments, exits or restructurings resulting in $3.0 million of net realized gains.

Previous wording

The most significant cumulative net change in realized gains (losses) for the three months ended May 31, 2025 were the following (dollars in thousands):

Current wording

The most significant cumulative net change in realized gains (losses) for the six months ended August 31, 2025 were the following (dollars in thousands):

Previous wording

The $2.2 million of net realized gains was from the sale of the equity position in our Identity Automation Systems investment.

Current wording

The $2.2 million of net realized gains was from the sale of the equity positions in our Identity Automation Systems investment.

Previous wording

For the three months ended May 31, 2026, our investments had a net change in unrealized depreciation of $15.2 million compared to a net change in unrealized appreciation of $0.9 million for the three months ended May 31, 2025.

Current wording

For the six months ended August 31, 2026, our investments had a net change in unrealized depreciation of $31.6 million compared to a net change in unrealized appreciation of $4.7 million for the six months ended August 31, 2025.

Previous wording

The most significant cumulative changes in unrealized appreciation (depreciation) for the three months ended May 31, 2026 were the following (dollars in thousands):

Current wording

The most significant cumulative changes in unrealized appreciation (depreciation) for the six months ended August 31, 2026 were the following (dollars in thousands):

Previous wording

The $3.4 million net change in unrealized depreciation in our investment in Exigo, LLC was primarily driven by overall company performance.

Current wording

The $11.9 million net change in unrealized depreciation in our investment in Exigo, LLC was primarily driven by overall company performance.

Previous wording

The $3.0 million net change in unrealized appreciation in our investment in Saratoga Senior Loan Fund I JV, LLC was primarily driven by the impact of the performance of individual credits in the portfolio and overall market conditions.

Current wording

The $1.9 million net change in unrealized appreciation in our investment in Saratoga Senior Loan Fund I JV, LLC was primarily driven by the impact of the performance of individual credits in the portfolio and overall market conditions.

Previous wording

The $1.5 million net change in unrealized depreciation in our investment in Chronus LLC was primarily driven by overall company performance.

Current wording

The $4.0 million net change in unrealized depreciation in our investment in Chronus LLC was primarily driven by overall company performance.

Previous wording

The $3.9 million net change in unrealized depreciation in our investment in Pepper Palace, Inc. was primarily driven by overall company underperformance.

Current wording

The $4.0 million net change in unrealized depreciation in our investment in Pepper Palace, Inc. was primarily driven by overall company performance.

Previous wording

The $1.7 million net change in unrealized depreciation in our investment in Axero Holdings, LLC was primarily driven by overall market conditions.

Current wording

The $2.9 million net change in unrealized depreciation in our investment in Axero Holdings, LLC was primarily driven by overall market conditions.

Previous wording

The $1.2 million net change in unrealized depreciation in our investment in Wellspring Worldwide Inc. was primarily driven by overall company underperformance.

Current wording

The $2.1 million net change in unrealized depreciation in our investment in Wellspring Worldwide Inc. was primarily driven by overall company performance.