13D Filing: Horton Capital Management, LLC and Safeguard Scientifics Inc (SFE)

The
Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors
including, without limitation, the Issuer’s financial position and investment strategy, the price levels of the shares, conditions
in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions
with respect to their investment in the Issuer as they deem appropriate including, without limitation, engaging in additional communications
with management and the Board of the Issuer, engaging in discussions with stockholders of the Issuer and others about the Issuer
and the Reporting Persons’ investment, making proposals to the Issuer concerning changes to the capitalization, ownership
structure, board structure (including board composition) or operations of the Issuer, purchasing additional shares of Common Stock,
selling some or all of their shares of Common Stock, or changing their intention with respect to any and all matters referred to
in Item 4.

Item 5.

Interest in Securities of the Issuer.

The percentages
used herein are calculated based upon 20,412,398 shares of Common Stock issued and outstanding as of October 24, 2017, as reported
in the Quarterly Report on Form 10-Q filed by the Issuer with the SEC on October 26, 2017.

As of the close
of business on January 29, 2018:

1. HCM

(a) Amount beneficially owned: 1,022,667*

(b) Percent of class: 5.0% *

(i) Sole power to vote or direct the vote: 0

(ii) Shared power to vote or direct the vote: 1,022,667*

(iii) Sole power to dispose or direct the disposition: 0

(iv) Shared power to dispose or direct the disposition: 1,022,667*

2. Mr. Manko

(a) Amount beneficially owned: 1,022,667*

(b) Percent of class: 5.0% *

(i) Sole power to vote or direct the vote: 0

(ii) Shared power to vote or direct the vote: 1,022,667*

(iii) Sole power to dispose or direct the disposition: 0

(iv) Shared power to dispose or direct the disposition: 1,022,667*

3. MAIM

(a) Amount beneficially owned: 1,022,665*

(b) Percent of class: 5.0% *

(i) Sole power to vote or direct the vote: 0

(ii) Shared power to vote or direct the vote: 1,022,665*

(iii) Sole power to dispose or direct the disposition: 0

(iv) Shared power to dispose or direct the disposition: 1,022,665*

4. MP

(a) Amount beneficially owned: 1,022,665*

(b) Percent of class: 5.0% *