Net Investment Income for the three months ended December 31, 2011, was $4.4 million, or $0.21 per common share.

Net Decrease in Net Assets Resulting From Operations for the three months ended December 31, 2011, was $1.3 million, or $0.06 per common share.

New Investment Activity: The Company invested $1.6 million in one new portfolio company and $9.7 million of investments in existing portfolio companies through revolver draws, the addition of new term notes or additional equity, for an aggregate of $11.3 million in new investments.

Principal Repayments: The Company received aggregate repayments of $10.8 million, which includes various scheduled and unscheduled principal repayments, including an early payoff, at par, for $6.1 million in net proceeds.

Investment Restructure: Effective October 2011, the Company restructured its investments in Sunshine by reducing the interest rates on its line of credit, senior term debt and last-out tranche senior term debt to preserve Sunshine’s capital to enable Sunshine to invest in new and existing initiatives. The Company also invested $0.6 million in preferred equity in Sunshine during the three months ended December 31, 2011.

Investment Exit: In December 2011, the Company sold its investments in Newhall Holdings Inc. (“Newhall”) for net proceeds of $3.3 million, which resulted in a realized loss of $7.4 million recorded in the three months ended December 31, 2011. The Company’s debt investments in Newhall had previously been on non-accrual status.

Term Preferred Stock: In November, 2011, the Company completed a public offering of 1.5 million shares of Term Preferred Stock for gross proceeds of $38.5 million and net proceeds, after deducting underwriting discounts and offering expenses borne by the Company, of $36.4 million which the Company used to repay a portion of the outstanding borrowings under its credit facility.

Distributions: The Company paid monthly cash distributions to stockholders of $0.07 per common share for each of October, November and December 2011. The Company also made its first Term Preferred Stock distribution of $0.28203125 per preferred share in

December 2011, including the prorated November and full December monthly dividend amounts.

Amendment of the Credit Facility: On January 19, 2012, the Company entered into an agreement on its $137.0 million line of credit (“Amended Credit Facility”) to extend the maturity date three years to January 18, 2015 (the “Maturity Date”). The Amended Credit Facility was arranged by Key Equipment Finance Inc., as administrative agent, with Branch Banking and Trust Company and ING Capital LLC also joining the Amended Credit Facility as committed lenders. The Amended Credit Facility may be expanded to a maximum of $237.0 million through the addition of other committed lenders to the facility. If the Amended Credit Facility is not renewed or extended by the Maturity Date, all principal and interest will be due and payable on or before January 18, 2016. The interest rates on advances under the Amended Credit Facility remained unchanged at 30-day LIBOR, subject to a minimum rate of 1.5%, plus 3.75% per annum.

Investment Activity: Subsequent to December 31, 2011, the Company extended an aggregate amount of approximately $3.1 million to 8 existing portfolio companies in revolver draws and received scheduled repayments of $0.5 million from 9 portfolio companies. Additionally, Global Materials Technologies, Inc. made an early payoff at par of $2.4 million in January 2012, and paid $1.0 million in success fees to the Company.

Distributions Declared: The Company’s board of directors declared the following monthly distributions to stockholders:

Record Date

Payment Date

January 23, 2012

February 21, 2012

March 22, 2012

For the Three Months Ended:

Net investment income

Net (decrease) increase in net assets resulting from operations

Average yield on interest-bearing investments

Total dollars invested

Total dollars repaid

As of:

Fair value as a percent of cost

Net asset value per share

Number of portfolio companies

Total assets at fair value

ASSETS

Investments at fair value

Non-Control/Non-Affiliate investments (Cost of $273,177 and $288,266, respectively)

Control investments (Cost of $97,293 and $94,549, respectively)

Total investments at fair value (Cost of $370,470 and $382,815, respectively)

Cash

Restricted cash

Interest receivable – investments in debt securities

Interest receivable – employees

Due from custodian

Deferred financing fees

Prepaid assets

Other assets

TOTAL ASSETS

LIABILITIES

Borrowings at fair value (Cost of $56,900 and $99,400, respectively)

Mandatorily redeemable preferred stock, $0.001 per share par value, $25 per share liquidation preference; 4,000,000 and no shares authorized; 1,539,882 and no shares issued and outstanding at December 31, 2011 and September 30, 2011, respectively

Accounts payable and accrued expenses

Interest payable

Fees due to Adviser

Fee due to Administrator

Other liabilities

TOTAL LIABILITIES

NET ASSETS

ANALYSIS OF NET ASSETS

Common stock, $0.001 par value per share, 46,000,000 and 50,000,000 shares authorized; 21,019,242 and 21,039,242 shares issued and outstanding at December 31, 2011 and September 30, 2011, respectively

Capital in excess of par value

Notes receivable – employees

Cumulative net unrealized depreciation on investments

Cumulative net unrealized appreciation on borrowings

Under distributed net investment income

Accumulated net realized losses

TOTAL NET ASSETS

NET ASSET VALUE PER COMMON SHARE AT END OF PERIOD

INVESTMENT INCOME

Interest income

Non-Control/Non-Affiliate investments

Control investments

Cash

Notes receivable from employees

Total interest income

Other income

Non-Control/Non-Affiliate investments

Total other income

Total Investment income

EXPENSES

Loan servicing fee

Base management fee

Incentive fee

Administration fee

Interest expense on borrowings

Dividend expense on mandatorily redeemable preferred stock

Amortization of deferred financing fees

Professional fees

Other expenses

Expenses before credits from Adviser

Credits to fees from Adviser

Total expenses net of credits to fees

NET INVESTMENT INCOME

REALIZED AND UNREALIZED (LOSS) GAIN ON:

Net realized loss on investments

Net unrealized appreciation (depreciation) on investments

Net unrealized depreciation on borrowings

Net loss on investments and borrowings

NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE:

Basic and Diluted

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:

Basic and Diluted

Per Common Share Data^(A)

Net asset value at beginning of period

Income from investment operations ^(B)

Net investment income

Net realized loss on investments

Net unrealized appreciation (depreciation) on investments

Net unrealized depreciation on borrowings

Total from investment operations

Distributions to common stockholders from ^(B)(C)

Net investment income

Total distributions to common stockholders

Capital Common Share transactions

Repayment of principal on notes receivables

Stock redemption for repayment on notes receivables

Total from capital common share transactions

Other, net ^(D)

Net asset value at end of period

Per common share market value at beginning of period

Per common share market value at end of period

Total return^(E)(F)

Common shares outstanding at end of period

Statement of Assets and Liabilities Data:

Net assets at end of period

Average net assets^(G)

Senior Securities Data:

Borrowings at fair value

Mandatorily redeemable preferred stock

Asset coverage ratio^(H)(I)

Asset coverage per unit^(I)

Ratios/Supplemental Data:

Ratio of expenses to average net assets-annualized^(J)

Ratio of net expenses to average net assets-annualized^(K)

Ratio of net investment income to average net assets-annualized

Based on actual shares outstanding at the end of the corresponding period.

Based on weighted average basic per share data.

Distributions are determined based on taxable income calculated in accordance with income tax regulations which may differ from amounts determined under accounting principles generally accepted in the U.S.

Represents the impact of the different share amounts (weighted average shares outstanding during the period and shares outstanding at the end of the period) in the per share data calculations and rounding impacts.

Total return equals the change in the ending market value of the Company’s common stock from the beginning of the period, taking into account distributions reinvested in accordance with the terms of the Company’s dividend reinvestment plan. Total return does not take into account distributions that may be characterized as a return of capital.

Amounts were not annualized.

Average net assets are computed using the average of the balance of net assets at the end of each month of the reporting period.

As a Business Development Company, the Company is generally required to maintain a ratio of at least 200% of total assets, less all liabilities and indebtedness not represented by senior securities, to total borrowings and guaranty commitments. The Company’s mandatorily redeemable preferred stock is characterized as borrowings for the asset coverage ratio.

Asset coverage ratio is the ratio of the carrying value of the Company’s total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness (including interest payable and guarantees). Asset coverage per unit is the asset coverage ratio expressed in terms of dollar amounts per one thousand dollars of indebtedness.

Ratio of expenses to average net assets is computed using expenses before credits, if any, from the Adviser to the base management and incentive fees and including income tax expense.

Ratio of net expenses to average net assets is computed using total expenses net of credits from the Adviser to the base management and incentive fees and including income tax expense.