It is a pleasure to welcome the new stockholders who have made their investment in Global Self Storage, Inc. (NASDAQ: SELF) (the “Company”), formerly Self Storage Group, Inc., since our last report. The Company is a self-administered and self-managed real estate investment trust (“REIT”) focused on the ownership, operation, acquisition, development and redevelopment of self storage facilities. Our self storage facilities are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. The Company currently owns and operates seven self storage properties located in New York, Pennsylvania, Illinois, Indiana, and South Carolina.

As previously reported in our press release on January 19, 2016, the Company changed its name to Global Self Storage, Inc., changed its Securities and Exchange Commission (“SEC”) registration from an investment company to an operating company, and uplisted to the NASDAQ Capital Market (“NASDAQ”).

Global Self Storage Financial Update

We grew our top-line results by increasing same-store revenues by 11.6% for the year ended December 31, 2015 versus the year ended December 31, 2014. Same-store cost of operations

was relatively flat and decreased slightly by 0.2% over the same periods. Same-store funds from operations increased by 21.3% over the same periods as a result of the increase in year over year revenues and steady hold on operating expenses. Corporate overhead decreased by 9.1% over the same periods. Going forward, although we expect some corporate overhead expense reductions associated with our discontinued registration as an investment company, we expect to gain a number of new expenses related to, among other things, the Company’s new reporting requirements and compliance with the Sarbanes-Oxley Act of 2002.

Our results were driven by, among other things, our internet marketing initiatives which helped our overall average occupancy approach the 90% mark. Also contributing to our strong results were our customer service efforts which were essential in building local brand loyalty resulting in powerful referral and word-of-mouth market demand for our storage units and services. Another major contributing factor to our results was our revenue rate management program which helped increase our total annualized revenue per leased square foot by 15% year over year. All of the Company’s employees contributed to the results, which are summarized below.

We have been actively reviewing a number of property and portfolio acquisition candidates and have been working to further develop and expand our current properties. Importantly, at our Sadsburyville, PA facility in 2015, we completed construction of a state-of-the-art, all climate-controlled two story storage building adding 16,756 leasable square feet featuring a number of unique drive-up, climate-controlled units. This expansion has been well received by the local community. As of December 31, 2015, 82% of the first floor and 50% of the entire building have been leased, since the completion of construction. As previously reported, we are moving forward with site work and construction of the expansion project in Boling-brook, IL which, when completed, will add a little over 45,000 leasable square feet of climate-controlled and traditional storage units. The project has a budget of $2,200,000, which equates to an all-in projected cost of approximately $49 per square foot and a completion date of mid-2016.

Global Self Storage Operational Progress

As of December 31, 2015, the Company’s ownership of its self

storage facilities comprised more than 80% of its net assets, with the balance of net assets comprised of investment securities and a money market fund. All together, these facilities total 485,579 net rentable square feet and offer 3,813 storage units. In addition to traditional and climate-controlled units, many of the facilities feature both covered and outside auto/RV/boat storage.

As of December 31, 2015, the average overall square foot occupancy for all of the Company’s facilities combined was 87.9%, up from 87.7% on December 31, 2014, and up from 79.3% on December 31, 2013. During 2015, our self storage properties experienced the usual late spring and early summer seasonal boost in overall occupancy along with a slight occupancy decrease during late fall and early winter. We believe that through our various marketing initiatives, we are continuing to attract high quality, long term tenants who we expect will be storing with us for years. Currently, our average tenant duration of stay is over two years.

Global Self Storage Marketing and Customer Service

Our storage facilities in the Northeast, Mid-Atlantic and MidWest are located in densely populated and high traffic areas near major roads and highways. All of our properties display prominent road signage and most feature LED marquee boards describing the property features and move-in rent specials. Our facilities are located in areas with strong zoning laws and attentive planning boards which make it difficult for our competition to develop new facilities near ours. As we evaluate potential self-storage facilities, we seek properties in areas with these high barriers to entry.

From a marketing perspective, we have developed the brand, “Global Self Storage,” and now use it in all of our on-site signage, online advertising and other marketing materials. We have also launched our new corporate website www.Global-SelfStorage.us, where prospective customers can learn about the features of each facility and view high resolution images. The site also allows customers to pay their rent online.

We continue to develop the Global Self Storage online presence through advertising and search engine optimization. We solicit customer reviews for posting to the “Testimonials” section of our website and encourage others to view these testimonials, as most customers give us the top rating of 5 stars. We have found that our most reliable source of new tenants is through referrals of current tenants.

Attracting high quality, long-term tenants is the top priority for our company, and we strongly believe in tenant quality over tenant quantity. In our marketing efforts, we have seen tremendous success in our referral marketing program, as nothing seems to be as productive as asking our satisfied customers to recommend Global Self Storage to their family, friends, and colleagues. We also believe our property managers’ attention to detail – maintaining security, cleanliness and attentive customer service – is essential to attracting high quality tenants.

Each of our Global Self Storage facilities features a rental and payment center kiosk available 24 hours a day, seven days a week, where prospective tenants can rent a unit and current tenants can pay their rent. All of our facilities have on-site property managers who are committed to delivering the finest customer service. Our customer call center handles telephone inquiries from current and prospective tenants whenever our property managers are not available. They can respond to questions

about our facilities and storage features, and book reservations. Our top priorities are delivering convenience and high quality customer service to our storage customers, as well as maintaining clean and secure self storage facilities at all times.

Also of importance, we have implemented an ongoing revenue management program which includes regular internet data scraping of local competitors’ prices. We do this in order to maintain our competitive market price advantage for our various sized storage units at all of our Global Self Storage properties. This program helps us maximize our occupancy rates, which improves our revenue and net operating income.

Self Storage Market Report

Throughout 2015 and into 2016, the self storage industry continued to enjoy positive trends, which included:

Demand for self storage space was sustained by the recovering job and housing markets. All-time high occupancy rates led to higher asking rental rates in many markets. Rental rate discounting (ex. “$1 Move-In”, “First Month Free”) was widely reported to be reduced due to higher occupancies. Permits for the new development of self storage facilities have increased considerably over previous years even though there continued to be a relatively low number of newly developed self storage properties coming on line. Over time this new supply of competition may have a significant impact on the industry. However, for the foreseeable future we expect that the aforementioned positive trends, especially the rise in per capita demand for storage space, should continue to support positive absorption across most markets. We have noted a strong trend towards ownership consolidation led by the REITs and other well-capitalized owner/operators. This has been accompanied by a greater gulf developing between the more sophisticated operators [large and small] and those without the resources or interest in utilizing the various technology advantages available to maximize occupancies and revenues, control expenses and maximize net operating income.

Positive operational trends continued to attract new investors into the self storage real property market. Capitalization rates have compressed for high quality Class A institutional size properties, traditionally in demand by REITs and private equity groups. This phenomenon of many players seeking and bidding up relatively few available Class A assets has sent yield seeking investors down the quality scale to capture higher returns in stabilized assets in one-off markets and Class B and Class C assets located in secondary and tertiary markets. We expect these trends to continue through 2016. As such, we intend to continue seeking acquisition opportunities in these secondary and tertiary markets and to apply our strict standards in evaluating all new opportunities. Also, as previously mentioned, we intend to expand some of our self storage facilities with new construction where economically feasible. In addition to the completed expansion at Global Self Storage in Sadsburyville, PA and the new construction project at Global Self Storage in Bolingbrook, IL, we intend to explore the feasibility of profitable expansion at the Merrillville facility.

Risk Factors

Stockholders and potential investors should note that there are a number of risks related to the Company’s business. These include, but are not limited to, risks related to the operating performance of the Company’s self storage facilities and risks associated with the Company’s real estate investments. There are also risks related to the Company’s organization and structure and risks related to the Company’s tax status as a REIT.

The foregoing is qualified by reference to a more complete statement of applicable risks contained in this report under “Policies and Risks-Risk Factors” and in the Company’s Form 10 filed with the SEC on December 14, 2015, which is available at www.globalselfstorageinc.com.

Strategy and Returns

The Company’s strategy in 2015 continued to be to own and operate self storage facilities and seek self storage facility acquisition opportunities. The Company’s strategy resulted in a total return for the year ended December 31, 2015 based on net asset value of 19.00% and a total return based on market price value of 10.86%. Distributions for the year ended

December 31, 2015 totaled $0.26 per share. The Company’s net asset value per share was $5.70 and its share closing market price was $3.75. Investment return and value will vary and shares of the Company may subsequently be worth more or less than original cost.

Distribution Policy and Tax Treatment

The current distribution policy is to provide investors with a stable quarterly distribution out of current income, supplemented by realized capital gains, and to the extent necessary, paid in capital. As noted above for the year ended December 31, 2015, distributions paid totaled $0.26 per share. The majority of these distributions were comprised of net investment income and net capital gains and the remainder return of capital. The estimated components of each quarterly distribution, which may include a return of capital, were provided to stockholders of record in a notice accompanying these distributions.

Stockholder Rights Plan

On January 28, 2016, the Company announced that its Board of Directors, after careful consideration and based on the recommendation of a special committee comprised solely of the independent directors, by the unanimous vote of the directors present, adopted a stockholder rights plan (the “Rights Plan”).

The Rights Plan is designed to ensure that all Company stockholders receive fair and equal treatment in the event of an unsolicited attempt to acquire the Company. The adoption of the Rights Plan is intended to deter partial and “two step” tender offers or other coercive takeover tactics, and to prevent an acquirer from gaining control of the Company without offering a fair price to all of the Company’s stockholders. The Rights Plan was not adopted in response to any known offers for the Company and is similar to stockholder rights plans adopted by many other companies.

To implement the Rights Plan, the Board of Directors declared a dividend distribution of one right for each outstanding share of Company common stock, par value $.01 per share, to holders of record of the shares of common stock at the close of business on January 29, 2016. Each right entitles the registered holder to purchase from the Company one one-thousandth of a share of preferred stock, par value $.01 per share. The rights will be distributed as a non-taxable dividend and will expire on January 29, 2026. The rights will be evidenced by the underlying Company common stock, and no separate preferred

stock purchase rights certificates will presently be distributed. The rights to acquire preferred stock are not immediately exercisable and will become exercisable only if a person or group, other than certain exempt persons, acquires or commences a tender offer for 9.8% or more of the Company’s common stock.

If a person or group, other than an Exempt Person (as defined in the Rights Plan agreement), acquires or commences a tender offer for 9.8% or more of the Company’s common stock, each holder of a right, except the acquirer, will be entitled, subject to the Company’s right to redeem or exchange the right, to exercise, at an exercise price of $12, the right for one one-thousandth of a share of the Company’s newly-created Series A Participating Preferred Stock, or the number of shares of Company common stock equal to the holder’s number of rights multiplied by the exercise price and divided by 50% of the market price of the Company’s common stock on the date of the occurrence of such an event. The Company’s Board of Directors may terminate the Rights Plan at any time or redeem the rights, for $0.01 per right, at any time before a person acquires 9.8% or more of the Company’s common stock.

A summary of the Rights Plan is available on the Company’s website at www.globalselfstorageinc.com and a copy of the Rights Plan agreement was filed with the SEC as an exhibit to a current report on Form 8-K dated January 29, 2016.

Company Website

The Company’s website, www.GlobalSelfStorageInc.com, provides investors with investment information, news, and other material regarding the Company. You are invited to use this resource to learn more about the Company. Information about the Company’s self storage facilities can be found at www.GlobalSelfStorage.us.

As always, we are grateful to the Company’s long standing stockholders for their continuing support.

1.    ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Global Self Storage, Inc. (formerly Self Storage Group, Inc.) (the “Company”), a Maryland corporation registered under the Investment Company Act of 1940, as amended (the “Act”) is a non-diversified, closed end management investment company. The Securities and Exchange Commission (“SEC”) effective order approving the Company’s application with the Securities and Exchange Commission (“SEC”) to deregister from the Act was granted on January 19, 2016. Accordingly, effective January 19, 2016, the Company changed its name to Global Self Storage, Inc., changed its SEC registration to a reporting company under the Securities Exchange Act of 1934, as amended (from an investment company under the Act), and listed its common stock on the Nasdaq Capital Market under the symbol “SELF”. The Company, a real estate investment trust (“REIT”), owns and operates self storage facilities. Prior to deregistration as an investment company, the Company’s primary investment objective under the Act was to provide a high level of income, with capital appreciation as a secondary objective.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Company:

Valuation of Investments – Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is in the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price on the local exchange is unavailable, the last evaluated quote or closing bid price normally is used. Certain debt securities may be priced through pricing services that may utilize a matrix pricing system which takes into consideration factors such as yields, prices, maturities, call features, and ratings on comparable securities. Open end investment companies are valued at their net asset value. Foreign securities markets may be open on days when the U.S. markets are closed. For this reason, the value of any foreign securities owned by the Company could change on a day when stockholders cannot buy or sell shares of the Company. Securities for which market

quotations are not readily available or reliable and other assets may be valued as determined in good faith by the Valuation Committee (“VC”) of the Company under the direction of or pursuant to procedures approved by the Company’s Board of Directors. Due to the inherent uncertainty of valuation, such fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed. These differences in valuation could be material. A security’s valuation may differ depending on the method used for determining value. The use of fair value pricing by the Company may cause the net asset value of its shares to differ from the net asset value that would be calculated using market prices. A fair value price is an estimate and there is no assurance that such price will be at or close to the price at which a security is next quoted or next trades.

Investments in Other Investment Companies – The Company may invest in shares of other investment companies (the “Acquired Fund”) in accordance with the Act and related rules. Stockholders in the Company bear the pro rata portion of the fees and expenses of an Acquired Fund in addition to the Company’s expenses. Expenses incurred by the Company that are disclosed in the statement of operations do not include fees and expenses incurred of an Acquired Fund. The fees and expenses of an Acquired Fund are reflected in such Acquired Fund’s total returns.

Investments in Real Estate Investment Trusts – Dividend income is recorded based on the income included in distributions received from the REIT investments using published REIT reclassifications including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year end, and may differ from the estimated amounts.

Real Estate Owned - Self Storage Properties – The Company owns and operates self storage properties through wholly owned subsidiaries.

Short Sales – The Company may sell a security short it does not own in anticipation of a decline in the market value of the security. When the Company sells a security short, it must borrow the security sold short and deliver it to the broker/dealer through which it made the short sale. The Company is liable for any dividends or interest paid on securities sold short. A gain, limited to the price at which the Company sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale. Securities sold short result in off balance sheet risk as the Company’s

ultimate obligation to satisfy the terms of the sale of securities sold short may exceed the amount recognized in the Statement of Assets and Liabilities.

Investment Transactions – Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Realized gains or losses are determined by specifically identifying the cost basis of the investment sold.

Investment Income – Interest income is recorded on the accrual basis. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income is recorded on the ex-dividend date or, in the case of foreign securities, as soon as practicable after the Company is notified. Taxes withheld on income from foreign securities have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates.

Expenses – Expenses deemed by the Company to have been incurred solely by the Company are borne by the Company. Expenses deemed by the Company to have been incurred jointly by the Company and one or more of the other investment companies for which its affiliates serve as investment manager or other related entities are allocated on the basis of relative net assets, except where a more appropriate allocation can be made fairly in the judgment of the Company.

Expense Reduction Arrangement – Through arrangements with the Company’s custodian, credits realized as a result of uninvested cash balances are used to reduce custodian expenses. No credits were realized by the Company during the periods covered by this report.

Distributions to Stockholders – Distributions to stockholders are determined in accordance with income tax regulations and are recorded on the ex-dividend date.

Income Taxes – The Company has elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended (“IRC”). In order to maintain its qualification as a REIT, among other things, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Company is not subject to federal income tax with respect to that portion of its income which meets certain criteria and is distributed annually to stockholders. The Company plans to continue to operate so that it meets the requirements for taxation as a REIT. Many of these requirements, however, are highly technical and complex. If the Company were to fail to meet these requirements, it would be subject to federal income tax. The Company is subject to certain state and local taxes.

Foreign securities held by the Company may be subject to foreign

taxation. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Company invests.

The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The Company has reviewed its tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on federal, state, and local income tax returns for open tax years (2012 – 2014), or expected to be taken in the Company’s 2015 tax returns.

2.  RELATED PARTY TRANSACTIONS Certain officers and directors of the Company also serve as officers and directors of Winmill & Co. Incorporated (“Winco”), Bexil Corporation, Tuxis Corporation (“Tuxis”), and their affiliates (collectively with the Company, the “Affiliates”). As of December 31, 2015, certain of the Affiliates owned approximately 2% of the Company’s outstanding common stock. Pursuant to an arrangement between a professional employer organization (“PEO”) and the Affiliates, the PEO provides payroll, benefits, compliance, and related services for employees of the Affiliates in accordance with applicable rules and regulations under the IRC and, in connection therewith, Midas Management Corporation (“MMC”), a subsidiary of Winco, acts as a conduit payer of compensation and benefits to the Affiliates’ employees including those who are concurrently employed by the Company and its Affiliates. Rent expense of concurrently used office space and overhead expenses for various concurrently used administrative and support functions incurred by the Affiliates are allocated at cost among them. The Affiliates participate in a 401(k) retirement savings plan for substantially all qualified employees. A matching expense based upon a percentage of contributions to the plan by eligible employees is incurred and allocated among the Affiliates. The matching expense is accrued and funded on a current basis and may not exceed the amount permitted as a deductible expense under the IRC. The aggregate compensation and benefits accrued and paid by the Company for the year ended December 31, 2015 was $747,523. The aggregate rent and overhead accrued and paid by the Company for the year ended December 31, 2015 was $62,403. As of December 31, 2015, the Company had reimbursements payable to MMC and Winco for compensation and benefits and rent and overhead of $64,649.

Under the terms of the Company’s employment agreement with its President, Mark C. Winmill, the maximum monthly automobile allowance is $1,000 per month. To the extent that the monthly maximum payment under the Company’s automobile lease exceeds the monthly allowance, Mr. Winmill must reimburse the Company for the excess amount. In this regard, Mr. Winmill has reimbursed the Company $1,878 for the automobile payments paid and due in 2015.

Under the Lending Agreement, Lent Securities are marked to market daily and, if the value of the Lent Securities exceeds the value of the then-outstanding borrowings owed by the Company to BNP under the CFA (the “Current Borrowings”), BNP must, on that day, either (1) return Lent Securities to the Company’s custodian in an amount sufficient to cause the value of the outstanding Lent Securities to equal the Current Borrowings; or (2) post cash collateral with the Company’s custodian equal to the difference between the value of the Lent Securities and the value of the Current Borrowings. If BNP fails to perform either of these actions as required, the Company will recall securities, as discussed below, in an amount sufficient to cause the value of the outstanding Lent Securities to equal the Current Borrowings. The Company can recall any of the Lent Securities and BNP is obligated, to the extent commercially possible, to return such security or equivalent security to the Company’s custodian no later than three business days after such request. If the Company recalls a Lent Security pursuant to the Lending Agreement, and BNP fails to return the Lent Securities or equivalent securities in a timely fashion, BNP shall remain liable to the Company’s custodian for the ultimate delivery of such Lent Securities, or equivalent securities, and for any buy-in costs that the executing broker for the sales transaction may impose with respect to the failure to deliver. The Company shall also have the right to apply and set-off an amount equal to one hundred percent (100%) of the then-current fair value of such Lent Securities against the Current Borrowings. The Company earns securities lending income consisting of payments received from BNP for lending certain securities, less any rebates paid to borrowers and lending agent fees associated with the loan. As of and for the year ended December 31, 2015, there were no Lent Securities.

10.  INVESTMENT AND SECURITIES RISK

Foreign securities risk. Investments in the securities of foreign issuers involve special risks, including changes in foreign exchange rates and the possibility of future adverse political and economic developments, which could adversely affect the value of such securities. Moreover, securities of foreign issuers and traded in foreign markets may be less liquid and their prices more volatile than those of U.S. issuers and markets.

Non-diversification risk. The Company is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified company. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified company.

Equity securities risk. The prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

Concentration risk. The Company’s assets are concentrated in investments in the real estate industry and, as a result, the value of the Company’s common stock may be subject to greater volatility than an investment company with a portfolio that is less concentrated by industry. If the securities of the real estate industry or self storage companies as a group fall out of favor with investors, the Company could underperform other companies that have greater industry diversification. A more concentrated portfolio may cause the Company’s net asset value to be more volatile and thus may subject stockholders to more risk. As of December 31, 2015, the Company held approximately 82% of its assets in self storage properties. Thus, the volatility of the Company’s net asset value, and its performance in general, depends disproportionately more on the performance of a single industry than that of a more diversified company.

REIT risk. The Company’s investments in securities of real estate companies involve risks. The REITs in which the Company invests are subject to risks inherent in the direct ownership of real estate. These risks include, but are not limited to, the risk of a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers.

11.  CAPITAL STOCK The Company is authorized to issue 20,000,000 shares of $0.01 par value common stock. There were no transactions in common stock during 2015 or 2014.

12.  STOCKHOLDER RIGHTS PLAN On November 25, 2015, the Company’s Board of Directors adopted a stockholder rights plan (the “Plan”) dated November 25, 2015. To implement the Plan, the Board of Directors declared a special dividend distribution of one non-transferable right for each outstanding share of the Company’s common stock, par value $.01 per share, to stockholders of record at the close of business on November 25, 2015. Each right entitles the registered holder to purchase from the Company one share of its common stock, par value $.01 per share, subject to adjustment. The rights will be distributed as a non-taxable dividend and will expire at the close of business on March 24, 2016, unless earlier redeemed or exchanged by the Company. The rights will be evidenced by the underlying Company common stock and no separate rights certificates will presently be distributed. Subject to certain exceptions in the rights agreement, (“Rights Agreement”) the rights will become exercisable 10 days following a public announcement that a “person” (as defined in the Rights Agreement) or a group of affiliated or associated persons have acquired “beneficial ownership” (as defined in the Rights Agreement) of 15% or more of the outstanding shares of the Company’s common stock. In this event, however, any

person who “beneficially owns” (as defined in the Rights Agreement) more than 15% of the outstanding common shares of the Company’s common stock will not be permitted to exercise any rights associated with common shares beneficially owned in excess of 15% of the outstanding common shares of the Company, and those additional rights will be deemed null and void. The Board of Directors may terminate the Plan at any time or redeem the rights, for $.01 per right, at any time before a person or a group of affiliated or associated persons beneficially owns 15% or more of the Company’s common stock. Under certain circumstances, as set forth in the Rights Agreement, certain rights owned by any person who is or becomes an acquiring person (as defined in the Rights Agreement) shall become null and void. A copy of the Rights Agreement specifying the terms and conditions of the rights is available on the Company’s website at www.GlobalSelfStorageInc.com.

13. COMMITMENTS AND CONTINGENCIES The Company indemnifies its officers and directors from certain liabilities that might arise from their performance of their duties for the Company. Additionally, in the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and which may provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown as it involves future claims that may be made against the Company under circumstances that have not occurred.

The Company leases an automobile under a lease expiring on February 25, 2017. The future minimum lease payments under the lease in aggregate are $15,035 comprised of annual payments of $13,878 and $1,157 for the years ending December 31, 2016 and 2017, respectively.

14. UNAUDITED PROFORMA BALANCE SHEET Upon receiving the deregistration order from the SEC under the Act granted on January 19, 2016 the Company will prepare financial statements on a consolidated basis to include the financial position, results of operations, and cash flows of the Company and its wholly owned subsidiaries, rather than by the current investment company fair valuation approach.

The following table presents the Company’s unaudited pro forma balance sheet and has been prepared as if the deregistration order was effective on December 31, 2015. The unaudited pro forma balance sheet is based upon available information and upon certain assumptions that the Company believes are reasonable under the circumstances. The unaudited pro forma balance sheet presents the Company’s change in status from an investment company to an operating company no longer regulated as an investment company under the Act. This unaudited pro forma balance sheet does not-purport to represent what the Company’s financial position would

actually have been if the deregistration order in fact had occurred on such date or the Company’s financial position for any future dates or periods.

15. SUBSEQUENT EVENTS Effective January 19, 2016, the Company changed its name to Global Self Storage, Inc., changed its SEC registration to an operating company from an investment company, and listed its common stock on the Nasdaq Capital Market under the symbol “SELF”. Following deregistration as an investment company, the Company terminated its agreements with BNP, its custodian, and net asset value fund accountant.

On January 28, 2016 the Company announced that its Board of Directors has adopted a stockholders rights plan (the “Rights Plan”). To implement the Rights Plan, the Board of Directors declared a dividend distribution of one right for each outstanding share of Company common stock, par value $.01 per share, to holders of record of the shares of common stock at the close of business on January 29, 2016. Each right entitles the registered holder to purchase from the Company one one-thousandth of a share of preferred stock, par value $.01 per share. The rights will be distributed as a non-taxable dividend and will expire on January 29, 2026. The rights will be evidenced by the underlying Company common stock, and no separate preferred stock purchase rights certificates will presently be distributed. The rights to acquire preferred stock are not immediately exercisable and will become exercisable only if a person or group, other than certain exempt persons, acquires or commences a tender offer for 9.8% or more of the Company’s common stock. If a person or group, other than an Exempt Person (as defined in the Rights Plan agreement), acquires or commences a tender offer for 9.8% or more of the Company’s common stock, each holder of a right, except the acquirer, will be entitled, subject to the Company’s right to redeem or exchange the right, to exercise, at an exercise price of $12, the right for one one-thousandth of a share of the Company’s newly created Series A Participating Preferred Stock, or the number of shares of Company common stock equal to the holder’s number of rights multiplied by the exercise price and divided by 50% of the market price of the Company’s common stock on the date of

the occurrence of such an event. The Company’s Board of Directors may terminate the Rights Plan at any time or redeem the rights, for $0.01 per right, at any time before a person acquires 9.8% or more of the Company’s common stock. The Rights Plan is intended to replace the Plan dated November 25, 2015, which will expire on its own terms on March 24, 2016.

Effective January 29, 2016, the Board of Directors reclassified 100,000 unissued shares of the Company’s common stock into 100,000 shares of Series A Participating Preferred Stock, par value $.01 per share.

A summary of the Rights Plan is available on the Company’s website at www.globalselfstorageinc.com and a copy of the Rights Plan agreement was filed with the SEC as an exhibit to a current report on Form 8-K dated January 29, 2016.