BEIJING, Nov 1, 2021 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) (“Baidu” or the “Firm”), a foremost AI company with potent Web foundation, right now introduced the appointment of Rong Luo as chief economical officer, successful straight away.
“Rong has considerable experience in economical administration and cash markets,” stated Robin Li, Baidu’s co-founder and CEO. “We are delighted to welcome Rong to our administration workforce and hope his skills and leadership capabilities to support us reach our up coming stage of progress in the AI era.”
“I am quite psyched to sign up for Baidu. I search ahead to working with the executive staff to travel the foreseeable future progress for Baidu,” explained Mr. Luo.
Rong Luo joins Baidu from TAL Education and learning Team, an NYSE detailed business, exactly where he served as the main economic officer because November 2014 and played a number of critical administration roles. Prior to that, Mr. Luo was the main monetary officer of eLong Inc. from 2013 to 2014. Before that, Mr. Luo held different fiscal management positions at Lenovo Group and Microsoft. Mr. Luo retains bachelor’s levels in equally info administration & systems and economics from Peking University, a master’s degree in management science and engineering from Tsinghua College, and a Ph.D. diploma in administration science from Peking College.
About Baidu
Founded in 2000, Baidu’s mission is to make the complex earth simpler via technology. Baidu is a major AI company with potent World wide web foundation, investing on Nasdaq beneath “BIDU” and HKEX less than “9888”. One Baidu Ads represents eight Course A ordinary shares.
This announcement contains forward-wanting statements. These statements are manufactured less than the “safe and sound harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. These ahead-on the lookout statements can be recognized by terminology this kind of as “will,” “expects,” “anticipates,” “foreseeable future,” “intends,” “options,” “believes,” “estimates,” “assured” and equivalent statements. Amongst other issues, the quotations from management in this announcement, have forward-on the lookout statements. Baidu may well also make written or oral forward-looking statements in its periodic reviews to the U.S. Securities and Exchange Fee, in bulletins produced on the website of The Stock Trade of Hong Kong Limited (the “Hong Kong Stock Trade”), in its annual report to shareholders, in push releases and other penned resources and in oral statements created by its officers, administrators or personnel to 3rd functions. Statements that are not historical specifics, like but not constrained to statements about Baidu’s beliefs and anticipations, are ahead-searching statements. Forward-wanting statements entail inherent challenges and uncertainties. A number of elements could lead to genuine success to differ materially from people contained in any forward-wanting statement, such as but not confined to the subsequent: Baidu’s development methods its potential small business progress, together with enhancement of new merchandise and products and services its skill to bring in and retain users and clients level of competition in the Chinese Online look for and newsfeed sector competition for on-line advertising clients alterations in the Firm’s revenues and specified expense or expense products as a percentage of its revenues the consequence of ongoing, or any long term, litigation or arbitration, which includes people relating to mental house legal rights the predicted expansion of the Chinese-language Net search and newsfeed current market and the quantity of Online and broadband end users in China Chinese governmental guidelines relating to the World wide web and Net research companies, and typical financial circumstances in China and in other places. Even more information about these and other pitfalls is bundled in the Firm’s yearly report on Form 20-F and other documents submitted with the Securities and Trade Commission, and bulletins on the web page of the Hong Kong Inventory Exchange. Baidu does not undertake any obligation to update any forward-looking assertion, except as expected beneath applicable legislation. All information and facts supplied in this press launch and in the attachments is as of the date of the push launch, and Baidu undertakes no duty to update this sort of information, except as necessary less than applicable regulation.
Threat to the worldwide economy from financial marketplaces are at a “worrisome juncture,” as climbing inflation will make it complicated for central banking institutions to cushion any sharp tightening of fiscal disorders, a senior Worldwide Financial Fund official warned Tuesday.
“We are wanting at a pretty uncertain time, we do detect a ton of uncertainty, a good deal of downside hazards. So it is a worrisome juncture,” Tobias Adrian, the director of the IMF’s financial and money marketplaces section advised MarketWatch in an interview.
Adrian spoke as the IMF launched its newest report on world wide economic stability, which noted that investor optimism about the economic outlook is fading and financial current market vulnerabilities are intensifying.
Some warning symptoms that level to a deterioration in the underlying foundations of economic balance are amplified fiscal chance and soaring fragilities in the nonbank fiscal institutions, the report explained.
Study: IMF says world-wide momentum is slowing
The global financial system survived the pandemic generally thanks to enormous central financial institution intervention. The aspect results of this essential lifestyle guidance have been high credit card debt and stretched asset valuations.
As central banks appear to simplicity back their enable, trader worries about inflation and the expansion outlook could set off a steep drop in valuations. If sustained, this could place economic expansion at risk.
The dilemma is, are central financial institutions going to experience to the rescue yet again?
“Because inflation is so a great deal greater, the bar for [central bank intervention] is going to be extremely superior,” mentioned Tobias Adrian, director of the IMF’s monetary and capital markets department and the lead writer of the report, in an job interview with MarketWatch.
Adrian stated it is a challenging time period for central banking companies. They are experiencing a robust trade-off with world-wide growth even now beneath sought after levels and inflation stubbornly mounting.
Read through: IMF states global overall economy is getting rid of momentum
If central financial institutions simplicity, it would assist the genuine economic system but could spark inflation. If they tighten, they may well get inflation down at some point, but “it may be pretty expensive,” Adrian claimed.
“We have noticed inflation to be better and additional persistent than we considered,” Adrian mentioned.
“The form of channels for inflation that we’re viewing now are contrary to nearly anything we have witnessed before,” he included.
Read through: World-wide overall economy could lose $5.3 trillion if pandemic proceeds, IMF claims
The IMF even now expects inflation to arrive down finally, “but it is probably having extended than we initially considered,” he claimed.
The Fed’s tapering of its bond buy application does have the risk of tightening monetary ailments, Adrian reported.
Fed Chairman Jerome Powell and his colleagues should really be quite distinct about the route forward and what they anticipate and how they would react if economical circumstances tightened.
“That’s likely the very best you can do,” Adrian said.
The yield on the 10-calendar year Treasury note
TMUBMUSD10Y, 1.560{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
has risen to close to 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early August.

 
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Apple broke its possess quarterly document for revenue in the September quarter, but it fell quick of what Wall Street was predicting mainly simply because of provide chain constraints influencing the full field. Here’s what analysts experienced to say about the outcomes.
The Cupertino tech huge noted quarterly revenue of $83.4 billion, missing Wall Avenue expectations of $85. Apple attributed the earnings skip to chip lack and manufacturing issues, which the corporation says cost it $6 billion.
Even with the in general earnings miss out on, many of Apple’s other products strike or exceeded expectations. Even though Iphone profits also missed analyst targets, it was still a hefty raise around 2020. Apple’s iPad, Mac, and Expert services profits also rose 12 months-about-yr, with the latter two product or service classes achieving all-time highs.
Annually, Apple reported complete 2021 profits of $365.8 billion, up a enormous 33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from $274.5 billion the former 12 months. Although the organization did not offer official revenue assistance for the December quarter, it claimed it however expects healthier desire.
Here’s what money analysts assumed about Apple’s revenue pass up, and what they believe the firm’s upcoming will seem like in the next quarters.
Katy Huberty, Morgan Stanley

Apple’s September quarter was in-line with anticipations “under the hood,” in accordance to Morgan Stanley’s Katy Huberty. That is the moment you just take into account the source chain headwinds Apple faced during the quarter, she claims.
Whilst offer chain problems will likely dominate headlines, Huberty claims the much more vital elements to the Apple stock are robust Providers advancement, steering suggesting an in-line December quarter, Chinese demand outpacing other regions, and signals that issue towards a stronger-than-seasonal March quarter.
On the back again of the income miss and ongoing provide snarls, Huberty has reduced her 2022 revenue and earnings-for each-share estimates to $387.7 billion and $5.76, respectively.
Her 12-thirty day period Apple cost concentrate on has also fallen to $164, from $166. On the other hand, she maintains her Over weight rating of the Apple stock.
Daniel Ives, Wedbush
The primary concern affecting Apple is not demand for its merchandise, but its ability to meet up with that demand with supply, claims Wedbush analyst Daniel Ives. The analyst calls the present offer chain condition a “black cloud” that’s influencing just about every tech, vehicle, and purchaser company.
Ives thinks Apple is viewing need outstrip offer by about 10 million Apple iphone models globally. Nonetheless, over and above the full profits and Iphone income, the analyst notes that Apple’s other products and its Products and services company nonetheless arrived out in advance of his anticipations.
The analyst believes the troubles are transitory, and in no way has an effect on his long-term bullish see on Apple. Ives continue to expects the organization to hit a $3 trillion market place capitalization in 2022.
Ives maintains his 12-thirty day period Apple selling price focus on of $185 and his Outperform score for the inventory.
Krish Sankar, Cowen

Apple’s fiscal results for the September quarter were “overshadowed” by the $6 billion income overlook, and a identical effects on the December quarter will most likely be a most important aim likely forward. In spite of that, Krish Sankar of Cowen believes that sturdy demand can still travel healthier development.
The company’s income outcomes were 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} down below anticipations, although EPS was in-line with Wall Street anticipations. Sankar notes that the $6 billion in lost profits was greater than supply constraint estimates of about $3 billion, and mainly impacted the Apple iphone, iPad, and Mac.
Despite all of that, Sankar believes that strong buyer need and a greater common promoting rate (ASP) can continue to development 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} calendar year-in excess of-yr expansion in the fourth calendar quarter of 2021, which corresponds to Apple’s initially quarter of the calendar year and the busy getaway searching season.
Sankar has revised his December quarter sales estimate to $119.1 billion, and his EPS forecast to $1.90. He maintains his 12-month Apple price concentrate on of $180.
Samik Chatterjee, JP Morgan

Apple skipped both consensus earnings anticipations and JP Morgan’s Wall Avenue-significant forecast. Having said that, guide analyst Samik Chatterjee suggests that Apple’s steerage of a “quite stable” advancement in the December quarter should really notify investors that the consequences are only momentary.
Far more than that, the offer constraints will possible only thrust the timing in income and desire into foreseeable future quarters, Chatterjee says. He believes that the ingredient pressures usually are not probably to have an impact on overall desire for the Iphone or Mac.
To reflect that, Chatterjee has raised his quarterly earnings and earnings estimates for the impending fiscal intervals, unique Q1 2022. While the timing of the potent Apple iphone 13 cycle has been delayed, the analyst believes the magnitude of upside on Apple’s stock stays unchanged.
Chatterjee maintains his Leading Select rating for Apple and 12-month value concentrate on of $180.
Severe Kumar, Piper Sandler

Apple’s earnings overlook in the September quarter is a rare incidence, says Harsh Kumar of expense financial institution Piper Sandler. In spite of the supply chain constraints bleeding into the December quarter, Kumar still thinks Apple is very well-positioned to see calendar year-in excess of-calendar year development and profits data.
While the provide issues ended up greater than envisioned in Apple’s Q4 2021, there are signals that it will have a comparatively moderate effect on the company. Kumar points towards the better-than-anticipated Companies earnings, as well ongoing solid need for its hardware merchandise.
Kumar suggests that Apple’s aim on the purchaser, as evidenced by CEO Tim Cook’s solutions to analyst issues, is why the firm’s set up foundation grows each individual quarter. It is really also why he believes that demand from customers for the firm’s items is not going to perish amid the provide snarls. In other terms, the profits pass up will not have a “substance influence” on Apple’s company.
The analyst maintains his 12-thirty day period Apple price tag focus on of $175, and suggests the company is a customer on any Apple stock weakness.
Gene Munster, Loup Ventures

Stripping out the sound of provide difficulties reveals a sustainable expansion pattern for Apple, suggests Gene Munster, analyst and companion at Loup Ventures. He claims the quarterly earnings performed out as expected, with favorable demand from customers muted by tight offer.
Even so, at the rear of the headline news of the complications continuing into the December quarter is the reality that “Apple’s small business and outlook are more robust than ever,” Munster claims. He believes Apple will improve easily ahead of Wall Road anticipations in 2022.
Normalizing for supply headwinds, Munster states Apple is observing underlying progress in the mid-teens. Due to the fact of all those components, the analyst thinks the massive image of Apple driving the electronic acceleration is not likely to alter.
Munster maintains his 12-thirty day period to 24-month Apple value target of $200.
Webcast Scheduled for 1:45 PM PT/4:45 PM ET November 10, 2021
VAN NUYS, CA / ACCESSWIRE / October 29, 2021 / Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN), a global leader in carbon reduction and on-site resilient green energy solutions, announced today that on Wednesday, November 10, 2021, after market close, it expects to release full financial results for its second quarter of fiscal year 2022, ended September 30, 2021. Later that same day, at 1:45 p.m. Pacific Time (4:45 p.m. Eastern Time), Capstone will host a live webcast to discuss those results.
At the end of the conference call, Capstone will host a question-and-answer session to provide an opportunity for financial analysts to ask questions. Investors and interested individuals are invited to listen to the webcast by logging on to the Company’s investor relations webpage at www.capstonegreenenergy.com. A replay of the webcast will be available on the site for 30 days.
About Capstone Green Energy
Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.
For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.
The infant boomer era is identified for getting one of the largest generations in record and for its extended lifespan.
As this generation outlives its predecessors, giving and having to pay for senior care poses a new set of money worries, for the two getting old grown ups and their people. Transferring essential operations on the web these as monthly bill payment and exercise registration can simplicity some of the stress for households and allow senior care pros to greater analyze tendencies among the the senior living neighborhood, reported Ray Elliott, vice president of senior residing at house management program supplier Yardi.
“When I discuss about payers, typically it’s a child of the resident or various young children,” reported Elliott. “It could just as easily be some type of insurance policies, and it could be some mixture of that. So, the method is established up so that you have bought just one bill that is due, but a range of various payers. They could all be contributing toward the payment of that monthly bill … [Yardi’s platform is] structured in a way that a amount of unique entities could make the payments.”
A lot less than one particular-quarter of U.S. citizens ages 67 to 73 are self-assured that they can fork out all their clinical fees, indicating other functions most possible will be included in the organizing and executing of their care. The digitization of the senior treatment payments house offers loved ones users and other payers with transparency into the patient’s economical scenario and day-to-working day activities. Access to on the web billing units then permits concerned functions to synchronously system for forthcoming expenses and divide costs among payers or insurance coverage vendors.
Conventional Payment Tactics Create Friction in the Senior Treatment Payments Room
Young generations historically screen a larger willingness to undertake new payments know-how, however older generations adopted on-line banking methods out of necessity during the pandemic. A report by the American Bankers Association (ABA) and Accenture confirmed 68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of child boomers had increased on-line banking use, and 85{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of respondents will continue on conducting some or all of their transactions digitally. The mind-boggling approval level of on-line banking can be attributed, at least in section, to the quite a few conveniences and reduction in friction when in comparison to antiquated paper procedures.
“I imagine the largest obstacle [in the senior care payments space] is just handbook payments,” Elliott mentioned. “Still, a great deal of operators are offering that and making it possible for residents to shell out by test, but to me, there are just a ton of avoidable measures — the mailing of statements, the acquiring and processing of paper checks. When you get a look at and it does not match what the resident owes, appropriately implementing the payments to the open receivables can be challenging. To me, it just looks like it’s a labor-intense manual system.”
It is not unusual for additional than a person person to partake in the senior care payments process. A person of the older adult’s children might shell out for housing, for illustration, whilst one more may well address caregiving fees. Sending and receiving documentation by mail is slower than on the internet transactions, and all events involved may perhaps not receive the proper correspondence. With an all-in-one electronic platform, every person has obtain to the identical info.
“And then on best of that, [there is] some level of danger of applying the payment to an incorrect resident, you know, all those kinds of challenges,” continued Elliott. “There’s a good deal of friction factors there, whilst, if they [use] digital payments and pay out for it on the net or have autopay, it’s just a whole lot less difficult [to see] what is remaining paid out for, and it also finishes up, for the shopper, that they have far more regulate of that as properly.”
Consumers Want to Select How They Pay for Senior Treatment
Interest in electronic avenues spans a multitude of marketplaces. A PYMNTS report confirmed 49{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of consumers are extremely fascinated in getting on the web banking expert services from a large company, and 28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} are “extremely” or “very” interested in getting on line banking companies from significant retailers. Forty-one particular per cent are intrigued in the similar solutions from their companies. Evidence also suggests that people use a wide variety of electronic solutions to organize their finances.
“I think, surely in senior dwelling as I’m guaranteed with other markets, any time you can offer preference to the resident or to the payers, it is an desirable thing,” Elliott explained. “Nobody wants to be advised that there is only a person way that you can do this and, you know, you never have a selection on what you want to do. I think for the payers, [electronic payments] offers more overall flexibility to choose what payment method is best for them.”
There are many different methods to finance senior care prices, whether out-of-pocket, some kind of supplemental coverage or a government-assisted system this sort of as Medicaid. Several more mature grownups are not aware of the precise charge of senior treatment, and these who count on Medicare may perhaps not be aware that it does not address all the things. The affected person or a family member very likely will have to have to include some part of senior care costs from their private accounts. In this scenario, the option to spend by credit card can be significantly appealing for the reason that rewards factors may possibly help to offset the more charges.
“Again, some will in the long run opt for the bodily verify, but I think a ton of many others are searching to pay back electronically and use a credit rating or debit card,” extra Elliott. “In conditions of the information from the group, I believe it just presents the resident self-assurance that we recognize that just one dimension doesn’t in good shape all. And, like I mentioned, I assume that is vital in the senior dwelling sector. They want to experience like they are becoming listened to.”
– Net Investment Income per Share of $0.40; NAV per Share of $11.63 –
– Debt Portfolio Yield of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} –
– Declares Regular Monthly Distributions of $0.10 per Share through March 2022 and $0.05 Special Distribution Payable in December 2021 –
– Grew Portfolio to Record $452 Million –
FARMINGTON, Conn., Oct. 26, 2021 /PRNewswire/ — Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN” or the “Company”), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced its financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Highlights
Net investment income (“NII”) of $8.0 million, or $0.40 per share, compared to $5.9 million, or $0.34 per share for the prior-year period
Total investment portfolio of $452.3 million as of September 30, 2021
Net asset value of $237.6 million, or $11.63 per share, as of September 30, 2021
Annualized portfolio yield on debt investments of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the quarter
HRZN funded 15 loans totaling $98.9 million
HRZN’s investment adviser, Horizon Technology Finance Management LLC (“HTFM”), originated $141.4 million through its lending platform (“Horizon Platform”), inclusive of the HRZN loans
Raised total net proceeds of approximately $6.6 million with “at-the-market” (“ATM”) offering program
Experienced liquidity events from five portfolio companies
Cash of $42.9 million and credit facility capacity of $121.8 million as of September 30, 2021
Held portfolio of warrant and equity positions in 74 companies as of September 30, 2021
Undistributed spillover income of $0.44 per share as of September 30, 2021
Subsequent to quarter end, declared monthly distributions of $0.10 per share payable in January, February and March 2022 and a special distribution of $0.05 per share payable in December 2021
“We had an excellent third quarter, as HRZN generated net investment income of $0.40 per share, significantly grew its portfolio and increased its NAV per share,” said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of HRZN. “The momentum of the ‘Horizon’ brand and the Horizon Platform continued to accelerate, which was clearly evidenced by HRZN’s quarterly record of $99 million of originated loans. HRZN also completed five portfolio exits, leading to a debt portfolio yield of over 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, once again among the leaders in the industry. HTFM’s predictive pricing strategy continues to generate best-in-class yields, and the power of the Horizon Platform has created a portfolio for HRZN that is the largest in its history and is producing attractive yields for HRZN’s shareholders.”
“In addition to the strong growth in its portfolio, the credit quality of HRZN’s portfolio remains very solid, with nearly 97{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its portfolio 3-rated or better,” continued Mr. Pomeroy. “Demand for venture debt remains robust, and with HRZN’s deep committed backlog and ample capacity to originate loans on its platform, as well as HTFM’s pipeline of opportunities, HRZN is in a prime position to continue delivering compelling returns to its shareholders.”
Third Quarter 2021 Operating Results
Total investment income for the quarter ended September 30, 2021 grew 33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $16.4 million, compared to $12.3 million for the quarter ended September 30, 2020, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio, as well as higher fee income.
The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended September 30, 2021 and 2020 was 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 15.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively. The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.
Total expenses for the quarter ended September 30, 2021 were $8.3 million, compared to $6.5 million for the quarter ended September 30, 2020. The increase was primarily due to a $0.5 million increase in interest expense, a $0.4 million increase in the base management fee and a $0.5 million increase in the performance based incentive fee.
Net investment income for the quarter ended September 30, 2021 was $8.0 million, or $0.40 per share, compared to $5.9 million, or $0.34 per share, for the quarter ended September 30, 2020.
For the quarter ended September 30, 2021, net realized gain on investments was $1.3 million, or $0.07 per share, compared to $1.2 million, or $0.07 per share, for the quarter ended September 30, 2020.
For the quarter ended September 30, 2021, net unrealized appreciation on investments was $3.4 million, or $0.17 per share, compared to net unrealized depreciation on investments of $10.3 million, or $0.60 per share, for the prior-year period.
Portfolio Summary and Investment Activity
As of September 30, 2021, the Company’s debt portfolio consisted of 43 secured loans with an aggregate fair value of $429.9 million. In addition, the Company’s total warrant, equity and other investments in 76 portfolio companies had an aggregate fair value of $22.4 million. Total portfolio investment activity for the three and nine months ended September 30, 2021 and 2020 was as follows:
($ in thousands)
For the Three Months Ended
September 30,
For the Nine Months Ended September 30,
2021
2020
2021
2020
Beginning portfolio
$ 404,121
$ 355,880
$ 352,545
$ 319,551
New debt investments
98,592
16,094
217,252
121,648
Principal payments received on investments
(3,221)
(6,419)
(11,303)
(20,344)
Early pay-offs
(50,367)
(43,542)
(107,957)
(90,785)
Accretion of debt investment fees
1,016
795
3,186
3,080
New debt investment fees
(962)
(202)
(2,332)
(1,415)
Warrants received in settlement of fee income
—
—
—
978
Proceeds from sale of investments
(1,553)
(1,945)
(5,285)
(8,200)
Dividend income from controlled affiliate investment
—
—
—
118
Net realized gain (loss) on investments
1,344
1,178
(1,882)
3,945
Net unrealized appreciation (depreciation) on investments
3,376
(10,288)
8,122
(16,827)
Other
—
199
—
1
Ending portfolio
$ 452,346
$ 311,750
$ 452,346
$ 311,750
Portfolio Asset Quality
The following table shows the classification of HRZN’s loan portfolio at fair value by internal credit rating as of September 30, 2021, June 30, 2021 and December 31, 2020:
As of September 30, 2021, HRZN’s loan portfolio had a weighted average credit rating of 3.1, compared to 3.1 as of June 30, 2021 and 3.2 as of December 31, 2020, respectively, with 4 being the highest credit quality rating and 3 being the rating for a standard level of risk. A rating of 2 represents an increased level of risk and, while no loss is currently anticipated for a 2-rated loan, there is potential for future loss of principal. A rating of 1 represents deteriorating credit quality and high degree of risk of loss of principal.
As of September 30, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $3.0 million and a fair value of $2.8 million. As of June 30, 2021 there were no debt investments with an internal credit rating of 1. As of December 31, 2020, there was one debt investment with an internal credit rating of 1, with a cost of $6.8 million and a fair value of $1.7 million.
Liquidity and Capital Resources
As of September 30, 2021, the Company had $88.1 million in available liquidity, consisting of $42.9 million in cash and money market funds, and $45.2 million in funds available under existing credit facility commitments.
As of September 30, 2021, there was $37.5 million in outstanding principal balance under our $125.0 million revolving credit facility (“Key Facility”). The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $150.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.
Additionally, as of September 30, 2021, there was $65.8 million in outstanding principal balance under our $100 million senior secured debt facility with a large U.S.-based insurance company at an interest rate of 4.60{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
Horizon Funding Trust 2019-1, a wholly-owned subsidiary of HRZN, previously issued $100.0 million of Asset-Backed Notes (the “Notes”) rated A+(sf) by Morningstar Credit Ratings, LLC, and backed by $141.1 million of secured loans originated by HRZN. The Notes bear interest at a fixed interest rate of 4.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} per annum and have a stated maturity date of September 15, 2027. As of September 30, 2021, the Notes had an outstanding principal balance of $100.0 million.
During the three months ended September 30, 2021, the Company sold 395,068 shares of common stock under its ATM offering program with Goldman Sachs & Co. LLC and B. Riley FBR, Inc. For the same period, the Company received total accumulated net proceeds of approximately $6.6 million, including $0.2 million of offering expenses, from these sales.
As of September 30, 2021, the Company’s debt to equity leverage ratio was 110{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, within the Company’s 80-120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} targeted leverage range. The asset coverage ratio for borrowed amounts was 191{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
Liquidity Events
During the quarter ended September 30, 2021, HRZN experienced liquidity events from five portfolio companies. Liquidity events for HRZN may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.
In July, Revinate, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.
In August, Bardy Diagnostics, Inc. was acquired by Hill-Rom Holdings, Inc. and prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment, prepayment and success fee. HRZN also received proceeds totaling $1.2 million from the redemption of warrants it held in the company.
In September, Silk Technologies, Inc. prepaid its outstanding principal balance of $9.5 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.
In September, OutboundEngine, Inc. was acquired by Elm Street Technology, LLC and prepaid its outstanding principal balance of $5.9 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN also received proceeds totaling $0.3 million from the redemption of warrants it held in the company.
In September, HRZN received a $0.5 million success fee from its investment in Silkroad Technology, Inc.
Net Asset Value
At September 30, 2021, the Company’s net assets were $237.6 million, or $11.63 per share, compared to $205.2 million, or $11.17 per share, as of September 30, 2020, and $212.6 million, or $11.02 per share, as of December 31, 2020.
For the quarter ended September 30, 2021, net increase in net assets resulting from operations was $12.8 million, or $0.63 per share, compared to a net decrease in net assets resulting from operations of $3.3 million, or $0.19 per share, for the quarter ended September 30, 2020.
Stock Repurchase Program
On April 23, 2021, the Company’s board of directors extended the Company’s previously authorized stock repurchase program until the earlier of June 30, 2022 or the repurchase of $5.0 million of the Company’s common stock. During the quarter ended September 30, 2021, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through September 30, 2021, the Company has repurchased 167,465 shares of its common stock at an average price of $11.22 on the open market at a total cost of $1.9 million.
Recent Developments
On October 5, 2021, the Company funded a $2.5 million debt investment to an existing portfolio company, Branded Online, Inc.
On October 8, 2021, Getaround, Inc. prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Getaround, Inc.
On October 12, 2021, Topia Mobility, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Topia Mobility, Inc.
Monthly and Special Distributions Declared in Fourth Quarter 2021
On October 22, 2021, the Company’s board of directors declared monthly distributions of $0.10 per share payable in each of January, February and March 2022 and a special distribution of $0.05 per share payable in December 2021. The following tables shows these monthly and special distributions, which total $0.35 per share:
Monthly Distributions
Ex-Dividend Date
Record Date
Payment Date
Amount per Share
December 16, 2021
December 17, 2021
January 14, 2022
$0.10
January 18, 2022
January 19, 2022
February 16, 2022
$0.10
February 17, 2022
February 18, 2022
March 16, 2022
$0.10
Total:
$0.30
Special Distribution
Ex-Dividend Date
Record Date
Payment Date
Amount per Share
November 17, 2021
November 18, 2021
December 15, 2021
$0.05
After paying distributions of $0.30 per share and earning net investment income of $0.40 per share for the quarter, the Company’s undistributed spillover income as of September 30, 2021 was $0.44 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.
When declaring distributions, the HRZN board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.
Conference Call
The Company will host a conference call on Wednesday, October 27, 2021, at 9:00 a.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The access code for all callers is 13724271. The Company recommends joining the call at least 5 minutes in advance. In addition, a live webcast will be available on the Company’s website atwww.horizontechfinance.com.
A webcast replay will be available on the Company’s website for 30 days following the call.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of HRZN is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in HRZN’s filings with the Securities and Exchange Commission. HRZN undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Media Relations: ICR Chris Gillick HorizonPR@icrinc.com (646) 677-1819
Horizon Technology Finance Corporation and Subsidiaries Consolidated Statements of Assets and Liabilities (Dollars in thousands, except share and per share data)
September 30,
December 31,
2021
2020
(unaudited)
Assets
Non-affiliate investments at fair value (cost of $437,919 and $343,158, respectively)
$ 448,421
$ 343,498
Non-controlled affiliate investments at fair value (cost of $3,820 and $6,854, respectively)
2,800
7,547
Controlled affiliate investments at fair value (cost of $1,450 and $1,500, respectively)
1,125
1,500
Total investments at fair value (cost of $443,189 and $351,512, respectively)
452,346
352,545
Cash
20,817
19,502
Investments in money market funds
22,057
27,199
Restricted investments in money market funds
1,504
1,057
Interest receivable
6,397
4,946
Other assets
2,652
1,908
Total assets
$ 505,773
$ 407,157
Liabilities
Borrowings
$ 257,852
$ 185,819
Distributions payable
6,128
5,786
Base management fee payable
698
563
Incentive fee payable
2,012
975
Other accrued expenses
1,493
1,417
Total liabilities
268,183
194,560
Commitments and contingencies
Net assets
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2021 and December 31, 2020
—
—
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 20,592,640 and 19,453,821 shares issued and 20,425,175 and 19,286,356 shares outstanding as of September 30, 2021 and December 31, 2020, respectively
21
19
Paid-in capital in excess of par
288,861
271,287
Distributable earnings
(51,292)
(58,709)
Total net assets
237,590
212,597
Total liabilities and net assets
$ 505,773
$ 407,157
Net asset value per common share
$ 11.63
$ 11.02
Horizon Technology Finance Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except share and per share data)
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Investment income
Interest income on investments
Interest income on non-affiliate investments
$ 14,035
$ 10,974
$ 38,965
$ 32,286
Interest income on affiliate investments
—
175
213
532
Total interest income on investments
14,035
11,149
39,178
32,818
Fee income
Prepayment fee income on non-affiliate investments
1,204
1,156
2,460
1,911
Success fee income on non-affiliate investments
1,100
—
1,100
—
Fee income on non-affiliate investments
28
23
320
1,112
Fee income on affiliate investments
—
3
12
10
Total fee income
2,332
1,182
3,892
3,033
Dividend income
Dividend income on controlled affiliate investments
—
—
—
118
Total dividend income
—
—
—
118
Total investment income
16,367
12,331
43,070
35,969
Expenses
Interest expense
3,112
2,607
8,781
7,331
Base management fee
1,997
1,616
5,595
4,865
Performance based incentive fee
2,012
1,465
5,040
4,212
Administrative fee
251
234
829
740
Professional fees
559
247
1,348
1,095
General and administrative
333
302
1,142
877
Total expenses
8,264
6,471
22,735
19,120
Net investment income before excise tax
8,103
5,860
20,335
16,849
Provision for excise tax
56
—
174
—
Net investment income
8,047
5,860
20,161
16,849
Net realized and unrealized gain (loss)
Net realized gain (loss) on non-affiliate investments
1,344
1,178
(2,372)
3,957
Net realized loss on controlled affiliate investments
—
—
—
(12)
Net realized gain (loss) on investments
1,344
1,178
(2,372)
3,945
Net realized loss on extinguishment of debt
—
—
(395)
—
Net realized gain (loss)
1,344
1,178
(2,767)
3,945
Net unrealized appreciation (depreciation) on non-affiliate investments
3,929
(10,629)
10,314
(15,435)
Net unrealized (depreciation) appreciation on non-controlled affiliate investments
(228)
341
(1,867)
(1,134)
Net unrealized depreciation on controlled affiliate investments
(325)
—
(325)
(258)
Net unrealized appreciation (depreciation) on investments
3,376
(10,288)
8,122
(16,827)
Net realized and unrealized gain (loss)
4,720
(9,110)
5,355
(12,882)
Net increase (decrease) in net assets resulting from operations
$ 12,767
$ (3,250)
$ 25,516
$ 3,967
Net investment income per common share
$ 0.40
$ 0.34
$ 1.02
$ 0.98
Net increase (decrease) in net assets per common share
