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
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 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.
– 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
