OFS Capital Corp

Investing in our common stock may be speculative and involves a high degree of risk. In addition to the other information contained in this Quarterly Report on Form 10-Q, including our financial statements, and the related notes, schedules and exhibits, you should carefully consider the risk factors described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report on Form 10-K”), filed on March 3, 2026, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

Other than the risks described below, there have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K. The risks previously disclosed in the Annual Report on Form 10-K should be read together with the other information disclosed elsewhere in this Quarterly Report on Form 10-Q and our other reports filed with the SEC.

Our credit facilities may contain various covenants that, if not complied with, could accelerate repayment under such credit facilities, thereby materially and adversely affecting our liquidity, financial condition and results of operations.

Compliance with these covenants depends on many factors, some of which are beyond our control. Accordingly, there are no assurances that we will be able to comply with the covenants in any credit facilities we enter into. Failure to comply with these covenants could result in a default under such credit facilities, that, if we were unable to obtain a waiver from the lenders or holders of such indebtedness, as applicable, such lenders or holders could accelerate repayment of the indebtedness, or terminate the applicable credit facility, and thereby have a material adverse impact on our business, financial condition and results of operations.

Litigation Risks

We are subject to a variety of litigation risks. Litigation may arise in the course of our investment activities, may result from the nature of our holdings or could be driven by increased or changing interests by regulators in our business. The outcome of any such threatened or actual litigation is inherently uncertain and may include monetary damages, fees, fines, injunctive or other equitable relief and other sanctions. The costs of defending, settling or satisfying any such litigation will ordinarily be borne by us. Any such legal proceeding, involving any or all of the Company, the OFS Advisor, or their affiliates, could have a significant adverse effect on us. For a description of the material pending proceeding to which we are currently subject, see “Part II, Item 1. Legal Proceedings.”