Value Creation Through Constructive Activism Q2 2019 Shareholder - PowerPoint PPT Presentation

Value Creation Through Constructive Activism Q2 2019 Shareholder Call August 15, 2019 1

Safe Harbor Statement This presentation may contain statements of a forward-looking nature relating to future events. Statements contained in this presentation that are forward-looking statements are intended to be made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company’s current beliefs, and a number of important factors could cause actual results to differ materially from those expressed herein. Please see the Company’s filings with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company’s business, including but not limited to the risks and uncertainties associated with investing in privately held and publicly traded companies and other significant factors that could affect the Company’s actual results. Except as otherwise required by Federal securities laws, 180 Degree Capital Corp. undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties. 2

Summary of Q2 2019 • Increases in stock price, NAV/share, stock price/NAV, and cash + liquid securities: • Stock Price: $1.86 -> $1.969 (+6%) • NAV/Share: $2.76 -> $2.82 (+2%) • Stock Price/NAV: 67% -> 70% • Cash + Liquid Securities*: $36.4 million -> $38.5 million (+6%) • Portfolio notes • Public portfolio net value increased by $3.3 million • Increases in value led by IOTS ($2.1 million), TST including carried interest ($0.6 million), ITI ($0.5 million), and AIRG ($0.4 million) • Decreases in value of MRSN ($0.4 million) and EMKR ($0.2 million) were largest offsets to increases in value • Materially increased position in QMCO and initiated large position in MVEN • Two new undisclosed positions initiated during the quarter • Private portfolio net value change (including interest PWA write off) decreased by $470,000 • Increases driven by AgBiome (market adj. factor) • Decreases driven by D-Wave (market adj. factor), PWA (revenue est., comps and adj. capital), and Petra (scenario outcomes) • Market notes: • Microcap indices were up slightly for the quarter following substantial gains in the prior quarter. 3 * Net of unsettled trades as of the end of the quarters, respectively.

Historical Trend of NAV $3.0 $2.8 $2.6 2.82 $2.4 2.64 $2.60 $2.2 $2.34 $2.0 6 7 7 7 7 8 8 8 8 9 9 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / 1 1 0 0 1 1 0 0 1 1 0 3 3 3 3 3 3 3 3 3 3 3 / / / / / / / / / / / 2 3 6 9 2 3 6 9 2 3 6 1 1 1 4

Source of Changes in Net Assets – Q1 2019 to Q2 2019 Private $2.90 Portfolio (Net) NAV as of $0.02 6/30/19 $0.03 $0.11 NAV as of Operating Expenses $2.80 3/31/19 Including 2017 Deferred and 2019 Est. Annual Bonus Compensation Public Accrual and Portfolio (Net) $2.70 Net of Income $2.82 $2.76 $2.60 $2.50 Note: Interest write-off related to PWA included in private portfolio value change rather than change in income for this chart. Carried interest from TST distribution included in public portfolio. 5

Source of Changes in Net Assets – Q4 2018 to Q2 2019 $3.00 Public Private Portfolio (Net) Portfolio (Net) NAV as of $2.90 $0.02 6/30/19 $0.05 $2.80 Operating Expenses Including 2017 Deferred $0.25 and 2019 Est. Annual Bonus Compensation $2.70 NAV as of Accrual and 12/31/18 $2.82 Net of Income $2.60 $2.64 $2.50 Note: Interest write-off related to PWA included in private portfolio value change rather than change in income for this chart. Carried interest from TST distribution included in public portfolio. 6

Source of Changes in Net Assets – Q4 2016 to Q2 2019 Restructuring Expenses Public Portfolio and Additional Shares $3.20 (Net) Outstanding $0.06 $3.00 NAV as of $0.22 6/30/19 $2.80 Operating Expenses $0.71 Including 2017 Deferred and 2019 Est. $2.60 Annual Bonus Compensation NAV as of Accrual Net of Income $2.82 12/31/16 $2.40 $0.05 Private Portfolio $2.20 (Net) $2.34 $2.00 Note: Appreciation of MRSN pre-IPO to the IPO price is allocated to the private portfolio and post-IPO to the public portfolio. Interest write-off related to PWA included in private portfolio value change rather than change 7 in income for this chart. Carried interest from TST distribution included in public portfolio.

Our Public Positions Had a Positive Q2 2019 - Largest Increases in Value • Adesto Technologies Corporation (IOTS): Increased by $2.1 million ($0.07/share) from $6.05 to $8.15 (+34.7%) ◦ Q1 2018 earnings report and 2019 outlook viewed favorably on integration and cross-selling between acquired assets. ◦ Philadelphia Semiconductor Index (SOX) increased by 5.2% in quarter. ◦ Stock is up 24.5% through August 14, 2019. • TheStreet, Inc. (TST): Increased by $0.6 million ($0.02/share) from $5.60 to $6.13 (+9.5%)* ◦ Received $1.77/share on April 22, 2019; 180 received $319k in carried interest from TST SPV. ◦ Announced sale of company to TheMaven; shareholder vote scheduled for August 7, 2019 ◦ Total distribution of approx. $6.45/share; potential for additional $0.09/share; 180 received approx. $315k in addn'l carry from TST SPV. • Iteris, Inc. (ITI): Increased by $0.5 million ($0.02/share) from $4.17 to $5.17 (+24.0%) ◦ Announced acquisition of FL traffic management company;reported positive quarter and market trends. ◦ Stock is down 0.4% through August 14, 2019. • Airgain, Inc. (AIRG): Increased by $0.4 million ($0.01/share) from $12.83 to $14.15 (+10.3%) ◦ Q1 earnings report missed estimates and guidance for Q2 was revised lower with expectations for recovery in H2 2019. ◦ Stock initially dropped by 20%, but then recovered partially as quarter continued. ◦ Subsequent to quarter end, AIRG's stock dropped ahead of announcing lower than expected Q3 2019 guidance. ◦ Stock is down 16.3% through August 14, 2019. 8 * Reflects stock price post distribution of $1.77 and reverse split that occurred on April 22, 2019.

Largest Decrease in Value and Other Notable Portfolio Events in Q2 2019 • Emcore Corporation: Decreased by $234,903 ($0.008/share) from $3.65 to $3.29 (-9.9%) ◦ Q1 2019 report below expectations; subsequently reduced Q2 guidance due to Huawei sale ban. ◦ Announced acquisition of Systron Donner, a navigation product supplier, on June 10, 2019. ◦ Announced results of arbitration that resulted in unexpected $5 million payment Phoenix Navigation Components. ◦ Investor relations efforts continue to need complete overhaul. ◦ Post Q2 2019, company pre-announced revenue shortfall from revised guidance. ◦ Stock is down 11.9% through August 14, 2019. • Synacor, Inc.: Decreased by $15,932 (>$0.001/share) from $1.57 to $1.56 (-0.6%) ◦ Q1 report positive, but as of end of Q2 2019 AT&T overhang remained outstanding. ◦ Announced wind-down of AT&T portal on July 11, 2019, and reduced guidance on Q2 2019 earnings call. ◦ Focus now on growth of software business. ◦ Stock is down 14.1% through August 14, 2019. • Lantronix, Inc.: Increased by $168,245 ($0.005/share) from $3.02 to $3.33 (+10.3%) ◦ CEO resigned on March 1, 2019 to take position at larger company. ◦ New CEO, Paul Pickle, formerly of Microsemi, appointed CEO on March 25. ◦ Stock is up 3.3% through August 14, 2019. • iShares Russell 2000 ETF Put Spread: Realized gain of $114,202 ($0.004/share) (+45.1%) • Intermolecular, Inc.: Increased by $16,217 (>$0.001/share) from $1.15 to avg. sale price per share of $1.1558 (+0.5%) ◦ Company announced sale to Merck KGaA in for $1.20/share on May 6, 2019. 9 ◦ Sold entire position on date of announcement generating profit of $358,000 and IRR of 52%.