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May 31, 2022

Media Advisory – CAE’s FY2022 fourth quarter and full-year financial results and conference call

MONTREAL, Might 30, 2022 /CNW Telbec/ – (NYSE: CAE) (TSX: CAE) – CAE will keep a meeting call on June 1st at 8:30 a.m. Japanese Time (ET) to deliver analysts and institutional traders with a critique of CAE’s fiscal calendar year 2022 fourth quarter and total-year benefits and will launch its outcomes, in progress on Could 31st, 2022, after current market shut.

Marc Dad or mum, CAE’s President and Main Government Officer, Sonya Branco, CAE’s Government Vice President, Finance and Main Financial Officer, and Andrew Arnovitz, CAE’s Senior Vice President, Trader Relations and Enterprise Possibility Management, will take part in this contact supposed for money analysts, institutional buyers and the media. Remember to note that the media will have the chance to question questions immediately following the analysts’ question period.

The conference will be webcast stay on CAE’s internet site at www.cae.com. The webcast will be archived adhering to the celebration.

Party: CAE’s FY2022 Q4 and total-12 months money benefits and conference get in touch with

Date: June 1st, 2022

Time: 8:30 a.m. ET

Cell phone figures for conference simply call:

Region	Cellular phone range
North The usa	1-877-586-3392
Canada	+1-416-981-9024
Australia	1800703671
Belgium	080077657
France	0800919393
Germany	08001816101
Netherlands	08000222280
Singapore	8001012594
United Kingdom	08004960381

Fast replay (out there 3 several hours just after the connect with finishes for 48 several hours): 1-800-558-5253 or +1-416-626-4100
– Entry code: 22019146

About CAE

CAE is a significant engineering enterprise, at the foremost edge of digital immersion, offering options to make the environment a safer location. Backed by a report of 75 many years of sector firsts, we carry on to reimagine the client experience and revolutionize education and operational support methods in civil aviation, defense and stability, and healthcare. We are the husband or wife of preference to customers globally who operate in intricate, substantial-stakes and largely controlled environments, where successful results are critical. As testament to our customers’ ongoing desires for our remedies, above 60 percent of CAE’s profits is recurring in character. We have the broadest world presence in our marketplace, with much more than 13,000 workers, 180 web-sites, and teaching areas in more than 35 nations. www.cae.com

Comply with us on Twitter: @CAE_Inc
Fb: www.facebook.com/cae.inc
LinkedIn: www.linkedin.com/business/cae
Hashtags: #CAE #CAEpilot

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Supply CAE INC.

Look at unique content material: http://www.newswire.ca/en/releases/archive/Might2022/30/c8548.html

April 1, 2022

The Parent Company Reports Fourth Quarter and Full Year 2021 Financial Results

Doubled Direct-to-Consumer revenue to 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales in Q4 2021 compared with 24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in Q1 2021

Expanded reach to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California population with 11 retail stores, the second largest retail footprint in the state, 6 delivery depots and an immersive mobile shopping app

Appoints Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer

Conference Call to be Held, April 1, 2022, at 1:00 p.m. ET

SAN JOSE, Calif., March 31, 2022 /CNW/ – TPCO Holding Corp. (“The Parent Company” or the “Company”) (NEO: GRAM.U) (OTCQX: GRAMF), a leading consumer-focused California cannabis company, today announced its financial results for the fourth quarter (“Q4 2021”) and full year (“FY 2021”) ended December 31, 2021. All amounts are expressed in U.S. dollars.

The Parent Company (CNW Group/TPCO Holding Corp.)

Q4 2021 Financial Highlights

Net sales for Q4 2021 were $39.6 million
Gross profit for Q4 2021 was $2.3 million, or 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales
Net (income) loss and comprehensive (income) loss for Q4 2021 was $50.6 million
Adjusted EBITDA loss for Q4 2021 was $27.5 million. Adjusted EBITDA removes the effects of changes in fair value of financial instruments, impairment charges and other non-cash items.

FY 2021 Financial Highlights

Net sales for FY 2021 were $173.4 million
DTC Revenue for FY 2021 was $54.2 million or 31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales
Wholesale revenue for FY 2021 was $119.2 million of 69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales
Gross profit for FY 2021 was $20.2 million or 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales
Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million
Adjusted EBITDA loss for FY 2021 was $62 million.
Unrestricted Cash and equivalents totaled $165.3 million as of December 31, 2021

Management Commentary

“2021 was a foundational year, as we developed an integrated omnichannel retail platform that provides us with direct access to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California’s adult population, positioning us to execute on our goal of becoming the number one choice for consumers by providing for both ease of access and high-quality innovative cannabis products,” said Troy Datcher, Chief Executive Officer of The Parent Company. “We have added significant talent to our organization, including industry experts and seasoned professionals that provide us with the depth of knowledge and expertise we need to lead in this market. Talent is incredibly important, and we are extremely proud of the caliber of team we have assembled. I also want to thank our entire team for the work they have done over the last year, which was instrumental in strongly positioning us for 2022 and beyond.”

Mr. Datcher continued, “While the challenges in the California market remain, including low bulk wholesale flower and oil pricing, high taxes and persisting illicit market, we have successfully begun to pivot our focus to our higher margin direct to consumer revenue, doubling DTC revenue as a percentage of sales between the first and fourth quarters. Today more than ever, we believe we are well positioned to win by leveraging our high-quality indoor grown cannabis, strong consumer brands and direct retail insights to innovate, create, and launch new products directly into the market that today’s consumers demand.”

Mr. Datcher added, “With our consumer-first approach, state-wide DTC retail footprint, robust branded products portfolio, and focus on higher value revenue streams, our priority for the remainder of the year will be preserving our strong balance sheet by reducing our cash burn while utilizing our DTC focus to drive improved margin to generate long-term value for our shareholders. Given our progress in 2021 and subject to any opportunistic partnership or acquisition transactions, we have set a goal to maintain a minimum cash balance of approximately $100 million at 2022 year end, sufficient to sustain our business for a minimum of three years, and pivot to generating positive cash flow in fiscal year 2023.”

Mr. Datcher concluded, “I am proud of our commitment to social equity initiatives and thrilled with the initial success of our partners. I look forward to empowering more entrepreneurs of color, who continue to be disproportionately impacted by current cannabis policies, while bringing our customers high-quality products, experiences, and culturally relevant brands. With the investments we made in 2021, we are ready to execute on this mission in 2022.”

Leadership Team Appointments and Board Changes

The Company further announced today the appointments of Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer. Additionally, the Company announced that Troy Datcher, Chief Executive Officer of The Parent Company, will be proposed as a director nominee to stand for election to the Board of Directors as Carol Bartz and Jeffry Allen have advised their intention to retire from the Board at the Company’s upcoming 2022 Annual meeting.

Mr. Datcher commented, “I am thrilled to officially welcome Tanisha and Esther to the team. We are proactively building a solid foundation for long term success, and I look forward to leveraging Tanisha and Esther’s extensive industry expertise to further mature and scale our organization. I’m confident we have assembled the right combination of high-quality products, compelling consumer brands, and leadership team to achieve our goals.

Ms. Robinson founded W*nder (pronounced “Wonder”), a company focused on creating accessible, reliable, intuitive cannabis and plant-based beverages to enhance and improve how consumers experience the world. Prior to her role at W*nder, she worked as Chief Disruption Officer of BrewDog globally, and was the first CEO of BrewDog USA, leading the company from its initial startup phase to becoming one of the largest and fastest growing craft breweries in the United States. In addition to her experience at W*nder and BrewDog, Ms. Robinson has founded several successful companies such as Print Syndicate, a design, technology, and marketing company, and TicketFire, a mobile app that allows consumers to use, transfer and sell paper tickets by converting them to a mobile format. Robinson also served in the US Army as an Arabic linguist. Her studies in Arabic at Ohio State University provided her the opportunity to work on women’s and human rights in Damascus, Syria, for two years. She is a featured international speaker on entrepreneurship, conscious capitalism, innovation, disruption and leadership and serves on the board of The Columbus College of Art and Design (“CCAD”) and Mount Carmel Health System.

Ms. Song has established expertise in public relations and marketing from over 20 years of experience in building brand visibility through strategic communications and global marketing campaigns, prioritizing direct consumer relationship building through loyalty programs and authentic storytelling. Prior to joining TPCO, she held the position of Chief Marketing Officer for Pure Beauty, and prior to that, similar roles at Canndescent and MedMen. During her time at MedMen, Song successfully launched a multi-state loyalty program and an integrated system allowing delivery and curbside services. In addition to her experience at MedMen, Song also led global digital and VIP public relations at fashion brands, including Tory Burch, Tod’s and public relations agency, BPCM. Song is currently on the leadership team of Cannabis for Black Lives.

Q4 2021 Operational Highlights

Expanded the Company’s California retail footprint to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the population through definitive agreements to acquire Coastal Holding Company, LLC (“Coastal”), a retail dispensary license holder and operator with six retail licensed locations, five currently operating, and two delivery depots.
In preparation of potentially being permitted to list the Company’s common shares and warrants on the New York Stock Exchange or the Nasdaq Stock Market upon regulatory advancement, the Company’s filed its Form 10 registration statement with the United States Securities and Exchange Commission (the “SEC”), which became effective pursuant to the Securities Exchange Act of 1934, as amended on October 8, 2021.
Further strengthened the senior management team with the appointments of Kerry Arnold as Chief People Officer of the Company and Tiffany McBride as Managing Director of Social Equity Ventures.
Expanded suite of edible offerings with the launch of DELI Dimes, a new gummy cannabis product available in three flavors: Black Cherry, Fresh Watermelon and Red Berry.

Subsequent Events

On January 28^th, Company insiders, including the entire Board of Directors, Troy Datcher, Chief Executive Officer, Mike Batesole, Chief Financial Officer and other members of the senior leadership team, voluntarily entered into a twelve-month extension of lock-up agreements with the Company (the “Lock-Up Agreements”) with respect to an aggregate of over 34 million shares of common stock (“Lock-up Shares”), or approximately 35 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total issued and outstanding shares of common stock of the Company as of July 28, 2021.

FY 2021 Financial Results

Net sales for FY 2021 were $173.4 million, of which $54.2 million was Direct to Consumer sales, and $119.2 million was Wholesale.

Gross profit for FY 2021 was $20.2 million, representing gross margin of 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Company continues to focus on increasing direct-to-consumer sales as a percentage of overall revenue, to shift its sales to higher margin product categories, which over time, is expected to drive gross profit improvements.

Operating expenses for FY 2021 were $184.4 million, cash expenses included general and administrative costs of $47.3 million, salaries and benefits of $36.9 million, and sales and marketing expenses of $42.6 million. Non-cash expenses included: sales and marketing $30.2 million, stock-based compensation of $20.5 million, allowance for bad debts of $4.7 million and depreciation & amortization of $27.6 million.

Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million, which is primarily attributable to non-cash impairment charges of $654.3 million.

Adjusted EBITDA loss for FY 2021 was $62 million. The Adjusted EBITDA loss in 2021 was primarily attributable to the closing of the Qualifying Transaction and the integration initiatives undertaken since the closing.

Unrestricted Cash and cash equivalents totaled $165.3 million as of December 31, 2021. Since closing the Company’s qualifying transaction, the Company has invested $48.8 million in acquisitions and capital investments, $6.5 million to repurchase its own shares and $81.9 million or an average of $6.8 million of cash per month on operations as it integrates and scales its businesses.

The Company’s consolidated financial statements, as well as its accompanying management discussion and analysis of financial condition and results of operations (“MD&A”) have been included in its Annual Report on Form 10-K filed on EDGAR (www.sec.gov) as well as SEDAR (www.sedar.com). Please refer to The Parent Company’s MD&A for additional detail and discussion on the Company’s results from operations.

Conference Call

The Parent Company will host a conference call tomorrow, to discuss these results. Troy Datcher, Chief Executive Officer, and Mike Batesole, Chief Financial Officer will host the call starting at 1:00 p.m. Eastern time. A question-and-answer session will follow management’s prepared remarks.

DATE:	Friday, April 1^st, 2022
TIME:	1:00 p.m. Eastern Time
WEBCAST:	Click Here
DIAL-IN NUMBER:	(888) 254-3590 or (647) 794-4605
CONFERENCE ID:	2151082
REPLAY:	1 (888) 203-1112 or 1 (647)-436-0148 Available until 12:00 midnight Eastern Time Friday, April 8, 2022 Replay Code: 2151082

Financial results and analyses are available on the Company’s website (ir.theparent.co), EDGAR (www.sec.gov) and SEDAR (www.sedar.com).

About The Parent Company

Formed in January 2021, The Parent Company is a leading consumer-focused California cannabis company. The company’s three manufacturing facilities provide unparalleled access to high-quality, low-cost cannabis, while its vast wholesale distribution network of more than 450 California dispensaries, a direct-to-consumer omnichannel platform, six consumer delivery hubs and eleven omni-channel retail locations, currently service approximately 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the largest legal cannabis market in the country. The Company’s curated product portfolio includes eight valuable and scalable brands, including Monogram by Shawn “JAY-Z” Carter, Caliva, Deli, Fun Uncle, and Mirayo, which sets the tone for The Parent Company’s industry leadership in California and beyond.

In addition to its vast manufacturing infrastructure, consumer reach and cultural influence, The Parent Company is committed to using its resources and status to play a significant role in molding a more equitable cannabis industry. Its social equity ventures initiative, established by Chief Visionary Officer Shawn “JAY-Z” Carter, was created to break down the systematic barriers Black and other minority entrepreneurs face as they endeavor to secure meaningful participation, growth and leadership in the multibillion-dollar legal cannabis industry.

Shares of The Parent Company common stock are traded on NEO Exchange under the ticker symbol “GRAM.U” and on the OTCQX under the ticker symbol “GRAMF”.

For the latest news, activities, and media coverage, please visit www.theparent.co or connect with us on Instagram, LinkedIn, and Twitter.

Forward Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation which reflects The Parent Company’s current expectations regarding future events. The words “will”, “expects”, “intends”, “believes” and similar expressions are often intended to identify forward looking information, although not all forward-looking information contains these identifying words.

Specific forward-looking information contained in this press release includes, but is not limited to, statements concerning (i) the Company’s future financial performance (ii) ability of The Parent Company to execute on its growth strategy; (iii) expectations regarding future corporate development activities; (iv) expectation regarding U.S. listing and regulatory landscape; and (v) expansion of the Company’s direct-to-consumer line of its business. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond The Parent Company’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in The Parent Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, which is available on the SEC’s website at www.sec.gov and on SEDAR at www.sedar.com. The Parent Company undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Non-GAAP Financial Measures

This news release contains the non-GAAP financial measure “Adjusted EBITDA,” which is not recognized under GAAP and does not have a standardized meaning prescribed by GAAP. As a result, this measure may not be comparable to similar measures presented by other companies. For a reconciliation of “Adjusted EBITDA” to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.

Adjusted EBITDA

We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define Adjusted EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization, adjusted to exclude extraordinary items, non-recurring items and, other non-cash items, including, but not limited to (i) stock-based compensation expense, (ii) fair value change in contingent consideration and investments measured at Fair Value Through Profit and Loss (” FVTPL”), (iii) non-recurring legal and professional fees, human-resources, inventory and collections-related expenses, (iv) extra ordinary expenses related to COVID-19, (v) intangible and goodwill impairments and loss on disposal of assets, (vi) transaction costs related to merger and acquisition activities, and (vii) non-cash sales and marketing expenses.

Reconciliation of Non-GAAP Measures

		Three Months			Year-ended
		December 31, 2021	December 31, 2020		December 31, 2021		December 31, 2020
Net loss and comprehensive loss	$	(50,568,037)	(7,913,227)	$	(587,032,334)	$	(6,463,606)
Income taxes		5,645,521	–		(2,372,552)		–
Depreciation and amortization		8,790,536	–		27,615,762		–
Interest expense		1,455,241	–		5,183,817		–
EBITDA		(34,676,739)	(7,913,227)		(556,605,307)		(6,463,606)
Adjustments:		–
Share based compensation expense		3,005,477	–		20,456,297		–
Other non-recurring items:		–
Fair value change of contingent consideration		(8,821,983)	–		(229,819,070)		–
Loss on disposal of assets		(1,208,722)	–		2,447,985		–
Change in fair value of investments at FVTPL		832,172	–		1,250,990		–
Impairment loss		9,118,146	–		654,317,300		–
Provision for notes receivable		2,660,943	–		2,660,943		–
Write-off of prepaid inventory		1,620,891	–		1,620,891		–
Other taxes		–	–		2,243,441		–
De-SPAC costs		–	–		5,341,154		–
Restructuring costs		–	–		3,878,782		–
Sales and marketing expense		15,520	–		30,166,667		–
Adjusted EBITDA	$	(27,454,295)	(7,913,227)	$	(62,039,927)	$	(6,463,606)

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve The Parent Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of The Parent Company and any proceedings brought against the Company thereunder may adversely affect the Company’s operations and financial performance.

SOURCE TPCO Holding Corp.

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March 25, 2022

Pending home sales fall for fourth straight month

The housing marketplace in the U.S. may perhaps at last be cooling off.

Pending household sales, a primary indicator of the wellness of the housing current market, declined for the fourth straight thirty day period. The Countrywide Association of Realtors’ (NAR) Pending Household Revenue Index, which tracks the number of homes that are under agreement to be bought, fell 4.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in February from January and dropped 5.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the identical month a yr back. The final results have been disappointing as analysts predicted a 1.{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} increase in gross sales from a month earlier, according to Bloomberg consensus estimates.

Contract signings were down in all four regions of the U.S. in comparison to the very same time a 12 months in the past. Only the Northeast recorded an enhance in exercise from a thirty day period earlier.

“Pending transactions diminished in February mainly due to the very low variety of households for sale,” reported Lawrence Yun, NAR’s chief economist, in a press statement. “Buyer need is nonetheless intensive, but it is as simple as ‘one cannot buy what is not for sale.’”

Total housing inventory proceeds to stay frustrated. At the close of February there were 870,000 units accessible for sale, up 2.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from January and down 15.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a single calendar year back, in accordance to the NAR. Unsold stock sits at a 1.7-thirty day period source at the latest profits tempo, up from the history-small provide in January of 1.6 months and down from 2. months in February 2021.

The absence of inventory is driving household price ranges to report highs.

The median current-dwelling price for all housing kinds in February rose 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $357,300, up 15.{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from February 2021, as charges grew in every location. This marks 120 consecutive months of year-over-year boosts, the longest-running streak on document.

“The amount of houses for sale stays quite minimal and proceeds to shrink from last 12 months, preserving the tempo of gross sales elevated. In flip, record prices re-accelerated following the reprieve professional throughout tumble 2021, reaching a new superior of $392,000 in February,” stated George Ratiu, manager of economic investigate for Real estate agent.com, in a press statement forward of the outcomes. “For buyers seeking for a home, the greater selling price arrived at the similar time as rushing inflation not only took additional out of every paycheck, but also pushed home finance loan charges greater.”

Mortgage loan interest prices have jumped additional than a 50 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}-position in two weeks — the most significant two-week jump due to the fact June 2009. The charge on the regular 30-year set level mortgage loan (the most typical dwelling personal loan) jumped to 4.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, up from 4.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} a week ago, according to Freddie Mac.

“To be confident, with house loan prices up around 100bps in excess of the past calendar year and now at their greatest levels because 2019, housing exercise should sluggish going ahead,” Deutsche Bank analysts stated in a investigation note prior to the results.

As of February 2022, larger home loan rates and sustained selling price appreciation has led to a yr-more than-year increase of 28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in house loan payments, according to the NAR. Yun forecasts mortgage prices to be about 4.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the remainder of the yr.

“The surge in dwelling costs blended with mounting home loan rates can quickly translate to another $200 to $300 in home finance loan payments for each thirty day period, which is a significant pressure for numerous people previously on limited budgets,” he mentioned. Yun forecasts mortgage fees to be about 4.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the remainder of the calendar year and expects about a 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} reduction in house sales in 2022 as opposed to 2021.

Yun famous that homebuyers should try to lock in their home finance loan interest costs now if they are buying for a new household.

—

Amanda Fung is an editor at Yahoo Finance. Stick to her on Twitter: @amandafung

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March 2, 2022

Horizon Technology Finance Announces Fourth Quarter and Full Year 2021 Financial Results

FARMINGTON, Conn., March 1, 2022 /PRNewswire/ — Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN”, “Horizon” 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 fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Highlights

Net investment income (“NII”) of $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share for the prior-year period
Total investment portfolio of $458.1 million as of December 31, 2021
Net asset value of $245.3 million, or $11.56 per share, as of December 31, 2021
Annualized portfolio yield on debt investments of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the quarter
HRZN funded 17 loans totaling $79.9 million
HRZN’s investment adviser, Horizon Technology Finance Management LLC (“HTFM”), originated $118.2 million through its lending platform (“Horizon Platform”), inclusive of the HRZN loans
Raised total net proceeds of approximately $12.8 million with “at-the-market” (“ATM”) offering program
Experienced liquidity events from seven portfolio companies
Cash of $45.9 million and credit facility capacity of $92.8 million as of December 31, 2021
Held portfolio of warrant and equity positions in 76 companies as of December 31, 2021
Undistributed spillover income of $0.51 per share as of December 31, 2021
Subsequent to quarter end, declared distributions of $0.10 per share payable in April, May and June 2022

Full Year 2021 Highlights

Net investment income of $28.2 million, or $1.41 per share for 2021, compared to $20.7 million, or $1.18 per share, for the prior year
Achieved portfolio yield on debt investments of 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for 2021
HRZN funded 49 loans totaling $297.1 million; experienced liquidity events from 20 portfolio companies

“The fourth quarter capped off a landmark year for Horizon and the Horizon Platform, including a record investment portfolio at year-end of over $450 million, and we are proud of our entire team’s efforts,” said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon. “We generated NII of $0.39 per share, above our distribution level, while we continued growing our portfolio. Once again, we successfully harnessed the increasing power of the ‘Horizon’ brand to drive strong loan originations in the quarter, while maintaining an impressive committed backlog and pipeline of venture debt opportunities. In addition, HTFM’s predictive pricing strategy continued to prosper, as we completed seven portfolio exits, once again leading to a debt portfolio yield of over 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, among the top of the industry.”

“Along with HRZN’s excellent growth, we finished the year with nearly 98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its portfolio 3-rated or better,” continued Mr. Pomeroy. “We also recently further strengthened HRZN’s balance sheet and expanded its lending capacity, which should enable us to further grow the portfolio in 2022. With demand for venture debt remaining at near-peak levels, and with an extensive committed backlog and pipeline, we believe HRZN is well situated in 2022 to continue to grow its portfolio and deliver compelling returns to its shareholders.”

Fourth Quarter 2021 Operating Results

Total investment income for the quarter ended December 31, 2021 grew 68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $16.9 million, compared to $10.1 million for the quarter ended December 31, 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 December 31, 2021 and 2020 was 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 13.0{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 December 31, 2021 were $8.7 million, compared to $5.9 million for the quarter ended December 31, 2020. The increase was primarily due to a $0.9 million increase in interest expense, a $0.4 million increase in the base management fee and a $1.0 million increase in the performance-based incentive fee.

Net investment income for the quarter ended December 31, 2021 was $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net realized loss on investments was $0.9 million, or $0.04 per share, compared to net realized loss on investments of $18.6 million, or $0.99 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net unrealized depreciation on investments was $4.9 million, or $0.24 per share, compared to net unrealized appreciation on investments of $17.1 million, or $0.91 per share, for the prior-year period.

Full Year 2021 Operating Results

Total investment income for the year ended December 31, 2021 was $60.0 million, an increase of 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to $46.0 million for the year ended December 31, 2020.

Horizon’s dollar-weighted annualized yield on average debt investments for the year ended December 31, 2021 and 2020 was 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 14.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.

For the full year ended December 31, 2021, net investment income was $28.2 million, or $1.41 per share, compared to net investment income of $20.7 million, or $1.18 per share, in the prior year.

For the full year ended December 31, 2021, net realized loss on investments was $3.2 million, or $0.16 per share, compared to net realized loss on investments of $14.7 million, or $0.84 per share, for the full year ended December 31, 2020.

For the full year ended December 31, 2021, net unrealized appreciation on investments was $3.2 million, or $0.16 per share, compared to net unrealized appreciation on investments of $0.3 million, or $0.02 per share, for the full year ended December 31, 2020.

Portfolio Summary and Investment Activity

As of December 31, 2021, the Company’s debt portfolio consisted of 45 secured loans with an aggregate fair value of $437.3 million. In addition, the Company’s total warrant, equity and other investments in 78 portfolio companies had an aggregate fair value of $20.8 million. Total portfolio investment activity for the three months and full year ended December 31, 2021 and 2020 was as follows:

($ in thousands)	For the Three Months Ended December 31,		For the Full Year Ended December 31,
	2021	2020	2021	2020
Beginning portfolio	$ 452,346	$ 311,750	$ 352,545	$ 319,551

New debt investments	88,693	76,913	344,445	198,561

Principal payments received on investments	(2,171)	(4,485)	(13,474)	(24,829)

Early pay-offs	(66,579)	(30,644)	(174,536)	(121,429)

Accretion of debt investment fees	1,370	815	4,556	3,895

New debt investment fees	(930)	(938)	(3,261)	(2,353)

Warrants received in settlement of fee income	—	—	—	978

Proceeds from sale of investments	(9,169)	(134)	(52,954)	(8,335)

Dividend income from controlled affiliate investment	—	—	—	118

Net realized loss on investments	(568)	(17,672)	(2,451)	(13,727)

Net unrealized (depreciation) appreciation on investments	(4,917)	17,139	3,205	313

Other	—	(199)	—	(198)

Ending portfolio	$ 458,075	$ 352,545	$ 458,075	$ 352,545

Portfolio Asset Quality

The following table shows the classification of Horizon’s loan portfolio at fair value by internal credit rating as of December 31, 2021, September 30, 2021 and December 31, 2020:

($ in thousands)	December 31, 2021			September 30, 2021			December 31, 2020
	Number of Investments	Debt Investments at Fair Value	Percentage of Debt Investments	Number of Investments	Debt Investments at Fair Value	Percentage of Debt Investments	Number of Investments	Debt Investments at Fair Value	Percentage of Debt Investments
Credit Rating
4	9	$ 104,863	24.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	5	$ 56,337	13.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	6	$ 77,950	23.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
3	34	322,084	73.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	35	359,658	83.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	24	240,933	72.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
2	1	3,470	0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	2	11,141	2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	3	12,875	3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
1	1	6,900	1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	1	2,800	0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	1	1,737	0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Total	45	$ 437,317	100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	43	$ 429,936	100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}	34	$ 333,495	100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

As of December 31, 2021, Horizon’s loan portfolio had a weighted average credit rating of 3.2, compared to 3.1 as of September 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 December 31, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $11.5 million and a fair value of $6.9 million. 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 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 December 31, 2021, the Company had $71.4 million in available liquidity, consisting of $45.9 million in cash and money market funds, and $25.5 million in funds available under existing credit facility commitments.

As of December 31, 2021, there was $53.5 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 December 31, 2021, there was $78.8 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 4.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Subsequent to year-end 2021, the Company amended its senior secured debt facility, increasing the commitment by $100 million to enable its wholly-owned subsidiary to issue up to $200 million of secured notes. The amendment to the facility extends the investment period to June 2023 and the maturity date to June 2028. In addition, the amendment, among other things, reduces the applicable margin used to calculate the credit facility’s interest rate on the Company’s borrowings above $100 million. Such borrowings will be priced at the three-year USD mid-market swap rate plus 3.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The facility is collateralized by certain of the Company’s assets.

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. 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. The reinvestment period of the Notes ended July 15, 2021 and the maturity is September 15, 2027. As of December 31, 2021, the Notes had an outstanding principal balance of $70.5 million.

During the three months ended December 31, 2021, the Company sold 784,718 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 $12.8 million, including $0.3 million of offering expenses, from these sales.

As of December 31, 2021, the Company’s debt to equity leverage ratio was 106{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, within the Company’s 80-120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} targeted leverage range. The asset coverage ratio for borrowed amounts was 194{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Liquidity Events

During the quarter ended December 31, 2021, Horizon experienced liquidity events from seven portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.

In October, Getaround, Inc. prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.

In October, 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. HRZN continues to hold warrants in the company.

In October, HRZN received warrant proceeds of $0.1 million from its investment in Education Elements, Inc.

In November, CVRx, Inc. prepaid its outstanding principal balance of $20.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.

In November, MVI (ABC), LLC (assignee of Stereovision Inc.) paid its outstanding principal balance of $3.5 million on its venture loan, plus interest.

In December, HRZN received $7.0 million from the sale of its debt investment in Betabrand Corporation.

In December, HRZN received cash proceeds of $0.3 million from the sale of shares in Qualtrics International Inc., which HRZN received in connection with the sale of Clarabridge, Inc.

Net Asset Value

At December 31, 2021, the Company’s net assets were $245.3 million, or $11.56 per share, compared to $212.6 million, or $11.02 per share, as of December 31, 2020.

For the quarter ended December 31, 2021, net increase in net assets resulting from operations was $2.3 million, or $0.11 per share, compared to a net increase in net assets resulting from operations of $2.4 million, or $0.13 per share, for the quarter ended December 31, 2020.

Stock Repurchase Program

During the quarter ended December 31, 2021, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through December 31, 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 January 7, 2022, the Company funded a $1.3 million debt investment to an existing portfolio company, Unagi Inc.

On January 21, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a developer of prescription digital diagnostic and therapeutic products focused on pediatric behavioral health conditions.

On January 26, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Castle Creek Biosciences, Inc.

On January 28, 2022, the Company funded a $1.0 million debt investment to an existing portfolio company, Alula Holdings, Inc.

On February 1, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, Dropoff, Inc.

On February 7, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Canary Medical Inc.

On February 10, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a software-enabled services provider focused on planning, migration, operation and automation of SAP in the cloud.

On February 11, 2022, Quip NYC 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 Quip NYC Inc.

On February 23, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, NextCar Holding Company, Inc.

On February 24, 2022, LiquiGlide, Inc. prepaid its outstanding principal balance of $2.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in LiquiGlide, Inc.

Monthly Distributions Declared in First Quarter 2022

On February 25, 2022, the Company’s board of directors declared monthly distributions of $0.10 per share payable in each of April, May and June 2022. The following table shows these monthly distributions, which total $0.30 per share:

Monthly Distributions

Ex-Dividend Date	Record Date	Payment Date	Amount per Share
March 17, 2022	March 18, 2022	April 14, 2022	$0.10
April 18, 2022	April 19, 2022	May 16, 2022	$0.10
May 17, 2022	May 18, 2022	June 15, 2022	$0.10
		Total:	$0.30

After paying distributions of $1.25 per share deemed paid for tax purposes in 2021, declaring on October 22, 2021 a distribution of $0.10 per share payable January 14, 2022, and generating taxable earnings of $1.48 per share in 2021, the Company’s undistributed spillover income as of December 31, 2021 was $0.51 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 Horizon 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, March 2, 2022, 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 13726805. The Company recommends joining the call at least 10 minutes in advance. In addition, a live webcast will be available on the Company’s website at www.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.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected]
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected]
(646) 677-1819

Horizon Technology Finance Corporation and Subsidiaries Consolidated Statements of Assets and Liabilities (Dollars in thousands, except share and per share data)

	December 31,	December 31,
	2021		2020

Assets
Non-affiliate investments at fair value (cost of $452,387 and $343,158, respectively)	$ 458,075		$ 343,498
Non-controlled affiliate investments at fair value (cost of $0 and $6,854, respectively)	—		7,547
Controlled affiliate investments at fair value (cost of $1,450 and $1,500, respectively)	—		1,500
Total investments at fair value (cost of $453,837 and $351,512, respectively)	458,075		352,545
Cash	38,054		19,502
Investments in money market funds	7,868		27,199
Restricted investments in money market funds	1,359		1,057
Interest receivable	6,154		4,946
Other assets	2,450		1,908
Total assets	$ 513,960		$ 407,157

Liabilities
Borrowings	$ 257,613		$ 185,819
Distributions payable	6,365		5,786
Base management fee payable	706		563
Incentive fee payable	2,015		975
Other accrued expenses	1,926		1,417
Total liabilities	268,625		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 December 31, 2021 and December 31, 2020	—		—
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 21,384,925 and 19,453,821 shares issued and 21,217,460 and 19,286,356 shares outstanding as of December 31, 2021 and December 31, 2020, respectively	22		19
Paid-in capital in excess of par	301,359		271,287
Distributable earnings	(56,046)		(58,709)
Total net assets	245,335		212,597
Total liabilities and net assets	$ 513,960		$ 407,157
Net asset value per common share	$ 11.56		$ 11.02

Horizon Technology Finance Corporation and Subsidiaries Consolidated Statements of Operations (Dollars in thousands, except share and per share data)

	For the Three Months Ended		For the Year Ended
	December 31,		December 31,
	2021	2020	2021	2020
Investment income
Interest income on investments
Interest income on non-affiliate investments	$ 15,194	$ 9,217	$ 54,159	$ 41,503
Interest income on affiliate investments	39	157	252	689
Total interest income on investments	15,233	9,374	54,411	42,192
Fee income
Prepayment fee income on non-affiliate investments	1,651	434	4,111	2,345
Fee income on non-affiliate investments	61	223	1,481	1,335
Fee income on affiliate investments	—	35	12	45
Total fee income	1,712	692	5,604	3,725
Dividend income
Dividend income on controlled affiliate investments	—	—	—	118
Total dividend income	—	—	—	118
Total investment income	16,945	10,066	60,015	46,035
Expenses
Interest expense	3,253	2,342	12,034	9,673
Base management fee	2,022	1,593	7,617	6,458
Performance based incentive fee	2,015	975	7,055	5,187
Administrative fee	456	276	1,285	1,016
Professional fees	544	445	1,892	1,540
General and administrative	369	312	1,511	1,190
Total expenses	8,659	5,943	31,394	25,064
Net investment income before excise tax	8,286	4,123	28,621	20,971
Provision for excise tax	227	222	401	222
Net investment income	8,059	3,901	28,220	20,749

Net realized and unrealized loss on investments
Net realized loss on non-affiliate investments	(486)	(18,644)	(2,858)	(14,686)
Net realized loss on non-controlled affiliate investments	(390)	—	(390)	—
Net realized loss on controlled affiliate investments	—	—	—	(12)
Net realized loss on investments	(876)	(18,644)	(3,248)	(14,698)
Net realized loss on extinguishment of debt	—	—	(395)	—
Net realized loss	(876)	(18,644)	(3,643)	(14,698)
Net unrealized (depreciation) appreciation on non-affiliate investments	(4,811)	17,020	5,503	1,585
Net unrealized appreciation (depreciation) on non-controlled affiliate investments	1,019	120	(848)	(1,014)

Net unrealized depreciation on controlled affiliate investments	(1,125)	—	(1,450)	(258)
Net unrealized (depreciation) appreciation on investments	(4,917)	17,140	3,205	313
Net realized and unrealized loss	(5,793)	(1,504)	(438)	(14,385)

Net increase in net assets resulting from operations	$ 2,266	$ 2,397	$ 27,782	$ 6,364
Net investment income per common share	$ 0.39	$ 0.21	$ 1.41	$ 1.18
Net increase in net assets per common share	$ 0.11	$ 0.13	$ 1.39	$ 0.36
Distributions declared per share	$ 0.35	$ 0.30	$ 1.25	$ 1.25
Weighted average shares outstanding	20,622,770	18,794,836	20,027,420	17,534,528

SOURCE Horizon Technology Finance Corporation

January 13, 2022

Horizon Technology Finance Provides Fourth Quarter 2021 Portfolio Update

FARMINGTON, Conn., Jan. 12, 2022 /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 provided its portfolio update for the fourth quarter ended December 31, 2021 and an update on the lending platform (“Horizon Platform”) of Horizon Technology Finance Management LLC (“HTFM”), its investment adviser.

“We had another exceptional quarter, closing $118 million of loans originated through our lending platform, including $80 million of loans for HRZN,” said Gerald A. Michaud, President of HTFM. “For the year, the Horizon Platform originated over $425 million in new loans, including a record-high $297 million for the HRZN portfolio.”

“In addition, the committed backlog originated by the Horizon Platform grew to $153 million of debt investments, including $125 million in HRZN commitments, while the Horizon Platform maintained a considerable pipeline of new investment opportunities at the end of 2021,” added Mr. Michaud. “This positions the Horizon Platform and HRZN for additional growth in 2022 and further evidences the increasing power of the Horizon brand to attract unique, diverse and transformative companies.”

“Also in the fourth quarter, HRZN received $55 million in loan prepayments – validating our predictive pricing strategy and providing HRZN with additional fee income and accelerated interest income. Entering 2022, we are excited by the opportunity to further grow the Horizon Platform and HRZN loan portfolio and to deliver more value to HRZN’s shareholders,” concluded Mr. Michaud.

Fourth Quarter 2021 Portfolio Update

Originations

During the fourth quarter of 2021, a total of $118.2 million of loans funded through the Horizon Platform, including 17 loans totaling $79.9 million funded by HRZN as follows:

$12.5 million to a new portfolio company, Interior Define, Inc., an e-commerce platform that designs, sells and markets customized furniture direct to consumers.
$8.5 million to an existing portfolio company, Branded Online, Inc. (d/b/a Nogin), a company offering commerce-as-a-service to consumer and lifestyle brands.
$7.5 million to a new portfolio company, GreenLight Biosciences, Inc., a biopharmaceutical company focused on developing ribonucleic acid (RNA) solutions for human health and agricultural challenges.
$7.5 million to a new portfolio company, IMV Inc. (NASDAQ: IMV), a clinical-stage biopharmaceutical company developing a new class of cancer immunotherapies and infectious disease vaccines.
$7.0 million to a new portfolio company, an online platform offering high quality used cars to consumers on a subscription basis.
$5.0 million to a new portfolio company, a builder of conservation memorial forests that offer sustainable alternatives to cemeteries.
$5.0 million to an existing portfolio company, Emalex Biosciences, Inc., a clinical-stage biopharmaceutical company focused on developing treatments for central nervous system movement disorders and fluency disorders.
$5.0 million to an existing portfolio company, Supply Network Visibility Holdings LLC (d/b/a Everstream Analytics), a provider of supply chain risk management software.
$5.0 million to an existing portfolio company, Provivi, Inc., a developer of cost-effective natural crop protection products which utilize pheromones to disrupt the typical insect mating cycle.
$5.0 million to an existing portfolio company, Ceribell, Inc., a developer of an FDA-cleared rapid response electroencephalography (EEG) medical device, which measures the amount of electrical activity in different regions of the brain in order to diagnose seizures.
$3.5 million to a new portfolio company, a family experience creator that combines play, media and merchandise designed to inspire and engage families.
$2.5 million to an existing portfolio company, a developer of technology that can identify microbes in order to accelerate treatment and improve public health.
$2.5 million to a new portfolio company, a data platform that enables marketers to build personalized digital experiences and 1-to-1 marketing campaigns by focusing on behavioral data.
$1.25 million to an existing portfolio company, Unagi, Inc., a developer of premium portable electric scooters that are offered for sale and on an affordable monthly subscription program.
$1.0 million to an existing portfolio company, Alula, Inc., a designer and manufacturer of security systems sold exclusively to professional distributors and dealers.
$1.0 million to an existing company, InfoBionic, Inc., a developer of an FDA-cleared SaaS remote monitoring system to help treat cardiac arrhythmia.

Liquidity Events

HRZN experienced liquidity events from seven portfolio companies in the fourth quarter of 2021, including principal prepayments of $55.0 million and receipt of warrant and equity proceeds totaling $0.4 million, compared to $50.4 million of principal prepayments and $1.6 million of warrant proceeds during the third quarter of 2021:

In October, Getaround, Inc. prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.
In October, 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. HRZN continues to hold warrants in the company.
In October, HRZN received warrant proceeds of $0.1 million from its investment in Education Elements, Inc.
In November, CVRx, Inc. prepaid its outstanding principal balance of $20.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.
In November, MVI (ABC), LLC (assignee of Stereovision Inc.) paid its outstanding principal balance of $3.5 million on its venture loan, plus interest.
In December, HRZN received $7.0 million from the sale of its debt investment in Betabrand Corporation.
In December, HRZN received cash proceeds of $0.3 million from the sale of shares in Qualtrics International Inc., which HRZN received in connection with the sale of Clarabridge, Inc.

Principal Payments Received

During the fourth quarter of 2021, HRZN received regularly scheduled principal payments on investments totaling $2.9 million, compared to regularly scheduled principal payments totaling $3.2 million during the third quarter of 2021.

Commitments

During the quarter ended December 31, 2021, HRZN closed new loan commitments totaling $114.9 million to 10 companies, compared to new loan commitments of $91.0 million to 11 companies in the third quarter of 2021. HTFM’s other managed funds, during the quarter, closed new loan commitments totaling $38.8 million of unfunded loan approvals and commitments.

Pipeline and Term Sheets

As of December 31, 2021, HRZN’s unfunded loan approvals and commitments (“Committed Backlog”) were $124.5 million to 23 companies. This compares to a Committed Backlog of $100.6 million to 21 companies as of September 30, 2021. HRZN’s portfolio companies have discretion whether to draw down such commitments and the right of a portfolio company to draw down its commitment is often subject to achievement of specific milestones and other conditions to borrowing. Accordingly, there is no assurance that any or all of these transactions will be funded by HRZN. HTFM’s other managed funds ended the quarter with a total of $28.0 million of unfunded loan approvals and commitments.

During the quarter, HTFM received signed term sheets that are in the approval process, which may result in the Horizon Platform providing up to an aggregate of $135 million of new debt investments. These opportunities are subject to underwriting conditions including, but not limited to, the completion of due diligence, negotiation of definitive documentation and investment committee approval, as well as compliance with HTFM’s allocation policy. Accordingly, there is no assurance that any or all of these transactions will be completed or funded by HRZN.

Capital Markets Activity – Warrant and Equity Portfolio

As of December 31, 2021, HRZN held a portfolio of warrant and equity positions in 77 portfolio companies, including 64 private companies, which provides the potential for future additional returns to HRZN’s shareholders.

About Horizon Technology Finance

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 Horizon’s filings with the Securities and Exchange Commission. Horizon 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.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected]
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected]
(646) 677-1819

SOURCE Horizon Technology Finance Corporation