Core Viewpoint - Kodiak AI, Inc. has established a new debt facility with Horizon Technology Finance Corporation, which enhances its financial position by providing additional capital, lowering interest rates, extending maturity, and improving liquidity [1][2][7] Group 1: Debt Facility Details - The new debt facility amounts to $30 million, with terms that include a 200 basis point reduction in interest rates and an extension of maturity from 2026 to 2030 [1][7] - Borrowings under the Loan Agreement will accrue interest at a rate equal to the prime rate plus 3.50%, with a prime rate floor of 6.50% [3] - The Term Loans will be repayable in monthly interest-only payments from February 1, 2026, until July 1, 2028, followed by 18 equal monthly payments of principal and interest until maturity on January 1, 2030 [3] Group 2: Financial Impact - The favorable terms of the debt facility will strengthen Kodiak's financial position by increasing debt capacity, eliminating near-term principal payments, and extending debt maturity, resulting in reduced near-term cash outflows and improved liquidity [2][7] - The transaction reflects Horizon's confidence in Kodiak's business model and performance, enhancing the company's ability to execute on strategic priorities [2][7] Group 3: Company Overview - Kodiak AI, Inc. is a leading provider of AI-powered autonomous vehicle technology, aiming to address supply chain challenges through its driverless solution [9] - The company has achieved significant milestones, including deploying customer-owned and operated driverless trucks in commercial service and supporting national security initiatives with its technology [9]

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard. Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences. At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000 ...

On CNBC's “Mad Money Lightning Round,” on Tuesday, Jim Cramer recommended being careful with Lumen Technologies, Inc. (NYSE:LUMN) as the stock has “run too much.”According to recent news, Lumen named Jim Fowler chief technology & product officer on Dec. 5.Cramer recommended remaining very cautious about Unusual Machines, Inc. (NYSE:UMAC) , as the company is losing significant money. “Drone technology. Highly speculative,” he added.Jones Trading, on Dec. 1, initiated coverage on Unusual Machines with a Buy r ...

Core Insights - Samba TV has secured $30 million in initial financing from Horizon Technology Finance Corporation, with an additional potential $30 million for future growth [1][3] - The capital will be utilized to enhance AI transformation in media and advertising, expand global operations, and support strategic partnerships with major platforms like TikTok and Snap [2][3] - Samba TV aims to leverage its proprietary data and advanced AI platform to optimize advertising across various screens, positioning itself as a leader in the evolving media landscape [3][4] Company Overview - Samba TV is recognized as a global leader in AI-driven media intelligence, utilizing first-party data from millions of connected televisions and billions of web signals across over 50 countries [4] - The company provides a unified view of the consumer journey, enabling advertisers to effectively engage audiences across multiple platforms [4] Financing Details - The financing arrangement includes a venture debt facility with an initial close of $30 million and an uncommitted accordion of up to $30 million for future growth objectives [3] - Horizon Technology Finance Corporation specializes in providing capital to technology and life science companies, aiming to maximize returns through secured loans and capital appreciation [5]

Core Insights - The article focuses on Horizon Technology Finance (HRZN) and its baby bonds, highlighting the investment opportunities they present [1]. Group 1: Company Overview - Horizon Technology Finance is discussed in the context of its baby bonds and the potential investment opportunities they offer [1]. Group 2: Investment Strategy - The article emphasizes the importance of identifying mispriced investments in fixed-income and closed-end funds, which is a strategy employed by Denislav Iliev and his team [2]. - The investing group Trade With Beta provides features such as frequent picks for mispriced preferred stocks and baby bonds, along with weekly reviews of over 1200 equities [2].

Core Insights - The article discusses investment strategies to generate passive income through high-yield stocks and ETFs, emphasizing that significant returns can be achieved with relatively small investments [3][6]. Investment Opportunities - **Eagle Point Credit Company (ECC)**: Generated $52 million in total investment income in Q3, with a forward annual dividend yield of 29.79%. The company has a consistent track record of paying monthly dividends and plans to continue this practice into 2026 [5][8][9]. - **Horizon Technology Finance Corporation (HRZN)**: Originated $3.8 billion in venture loans to over 360 companies, offering a forward annual dividend yield of 20.5%. The company reported $14 million in net investment income for Q3 2025, indicating financial stability for continued dividend payments [10][11]. ETFs for Income Generation - **YieldMax Single-Stock ETFs**: These ETFs, including those for Microsoft (MSFO), Exxon Mobil (XOMO), and PayPal (PYPY), offer expected annual distribution rates ranging from 38.02% to 52.69%. They utilize options-trading strategies to achieve high yields and provide weekly cash distributions [14][15][17]. - The combination of ECC, HRZN, and three YieldMax ETFs can potentially raise the average yield to 37.23%, allowing for over $4,000 in annual income from a $12,500 investment [18]. Summary of Financial Metrics - **Eagle Point Credit Company**: Q3 GAAP net income of $15.5 million, with a total investment income of $52 million [8]. - **Horizon Technology Finance Corporation**: Q3 net investment income of $14 million, indicating a solid financial position [10].

Financial Data and Key Metrics Changes - The company generated net investment income (NII) of $0.32 per share, compared to $0.28 per share in the previous quarter and $0.32 per share in the same quarter last year [21] - The net asset value (NAV) per share increased by 5% to $7.12, up from $6.75 at the end of the previous quarter [7][23] - The company achieved a debt investment portfolio yield of 18.6% for the quarter, compared to 15.9% for the same quarter last year [20][12] Business Line Data and Key Metrics Changes - The current portfolio stood at $603 million, with new originations totaling $15 million during the quarter [10][22] - The company funded three debt investments totaling $15 million in the third quarter [10] - The onboarding debt investment yield was 12.2%, consistent with historical levels [12] Market Data and Key Metrics Changes - The venture capital market saw approximately $81 billion invested in VC-backed companies in the third quarter, with significant investments in AI [15] - The exit markets opened further with approximately $75 billion of exit value driven primarily by tech IPOs [15] Company Strategy and Development Direction - The company announced a merger with Monroe Capital Corporation, expected to close in early 2026, which will significantly increase assets under management [5] - The merger aims to create a more coordinated effort and leverage economies of scale in venture lending [5][6] - The company plans to focus on originating larger venture loans to top early-stage and late-stage companies [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong pipeline of larger venture debt transactions and high demand for venture debt capital [9][16] - The company expects to return to a growth trajectory historically experienced, supported by the merger with Monroe Capital [6][9] Other Important Information - The company raised $40 million through the issuance of 5.5% unsecured convertible notes due 2030, which will strengthen the balance sheet [8][18] - The company has a committed backlog of $119 million, down from $149 million at the end of the previous quarter [13] Q&A Session Summary Question: What do you expect the trend of early payoffs to be going forward? - Management expects early payoffs to revert to historical standards despite a higher rate in the recent quarter [26] Question: What is the credit quality of the new deals coming in? - Management indicated that they expect originations to exceed prepayments and are optimistic about the credit quality of new deals [28] Question: How sustainable is the current portfolio yield? - Management noted that the historical average portfolio yield is around 14.5% to 15%, which is more normalized compared to the current yield [32] Question: What is the plan for using the at-the-market program given the stock price is below book? - The company will evaluate its liquidity and capacity before utilizing the at-the-market program [39] Question: What is the target return on equity for new assets from the Monroe deal? - Management stated that they do not have a specific targeted return on equity but will stick to their high-yielding venture debt model [42]

Core Insights - Horizon Technology Finance (HRZN) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, but down from $0.32 per share a year ago, resulting in an earnings surprise of +10.71% [1] - The company generated revenues of $26.32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 12.49% and increasing from $24.56 million year-over-year [2] - Horizon Technology Finance shares have declined approximately 32.5% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $23.83 million, and for the current fiscal year, it is $1.11 on revenues of $96.26 million [7] - The estimate revisions trend for Horizon Technology Finance was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Horizon Technology Finance belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Palmer Square Capital BDC Inc. (PSBD), is expected to report quarterly earnings of $0.41 per share, reflecting a year-over-year decline of -14.6% [9]

Debt Investments - As of September 30, 2025, 97.0% ($543.6 million) of the debt investment portfolio at fair value consisted of Senior Term Loans[254] - As of September 30, 2025, the company had 39 debt investments valued at $560.2 million, representing 92.9% of the total portfolio[262] - Total debt investments amounted to $560.2 million, a decrease of 12.3% from $638.8 million on December 31, 2024[265] - The five largest debt investments at cost represented 25% of total debt investments outstanding as of September 30, 2025[265] - As of September 30, 2025, 100% of the outstanding principal amount of debt investments bore interest at floating rates, compared to 99% as of December 31, 2024[396] Investment Performance - The company reported a net realized loss on investments of $22.5 million for the three months ended September 30, 2025[262] - Net realized losses on investments totaled $22.5 million for the three months ended September 30, 2025, compared to $33.9 million for the same period in 2024[283] - During the nine months ended September 30, 2025, net realized losses on investments totaled $31.8 million, primarily due to the settlement of multiple investments and the realization of warrant investments[303] - Net unrealized depreciation on investments for the nine months ended September 30, 2025, totaled $13.8 million, primarily due to unrealized depreciation of various debt and equity investments[305] Financial Results - The total portfolio value as of September 30, 2025, was $603.5 million, a decrease from $697.9 million as of December 31, 2024[262] - Total investment income increased by $1.8 million, or 7.1%, to $26.3 million for the three months ended September 30, 2025, compared to $24.6 million for the same period in 2024[270] - Interest income on debt investments rose by $1.1 million, or 4.8%, to $24.3 million for the three months ended September 30, 2025[271] - For the nine months ended September 30, 2025, total investment income decreased by $1.0 million, or 1.3%, to $75.4 million compared to the same period in 2024[289] - Interest income on debt investments decreased by $3.4 million, or 4.6%, to $70.4 million for the nine months ended September 30, 2025, primarily due to a decrease in average earning debt investments[290] Expenses and Fees - Total expenses decreased by $0.4 million, or 3.2%, to $12.0 million for the three months ended September 30, 2025[277] - Total expenses increased by $0.2 million, or 0.4%, to $38.1 million for the nine months ended September 30, 2025[297] - Fee income increased by $0.6 million, or 46.7%, to $2.0 million for the three months ended September 30, 2025[273] - Fee income increased by $2.3 million, or 88.0%, to $5.0 million for the nine months ended September 30, 2025, driven by a higher amount of principal prepayments[292] Borrowings and Debt Facilities - The company expects to finance its investments through borrowings subject to a 150% asset coverage test[255] - Total borrowings outstanding as of September 30, 2025, amounted to $757.75 million, with a net balance of $424.03 million after debt issuance costs[327] - The outstanding principal balance under the NYL Facility was $181.0 million as of September 30, 2025, with a borrowing capacity of $69.0 million[317] - The Key Facility commitment was increased to $150 million, with a potential total commitment of $300 million, and the interest rate was adjusted to 7.35% as of September 30, 2025[329] - The NYL Facility had an outstanding balance of $181 million as of September 30, 2025, with a borrowing capacity of $69 million[334] Cash and Liquidity - As of September 30, 2025, cash and investments in money market funds amounted to $128.5 million, an increase from $97.5 million as of December 31, 2024[307] - Operating activities provided cash of $87.1 million for the nine months ended September 30, 2025, while financing activities used cash of $57.0 million[322] - The company believes its current cash and available funds will be sufficient to meet working capital and capital expenditure commitments for at least the next 12 months[326] Regulatory and Compliance - The company must distribute at least 90% of its net ordinary income and net short-term capital gains to qualify as a RIC, avoiding corporate-level tax[368] - The company operates as a RIC and is required to distribute at least 90% of its investment company taxable income to avoid corporate-level U.S. federal income tax[390] Advisor Fees - For the three months ended September 30, 2025, the Advisor earned $2.7 million, a decrease of 10% from $3.0 million in the same period of 2024[373] - For the nine months ended September 30, 2025, the Advisor earned $8.9 million, down from $9.5 million in 2024, reflecting a decline of approximately 6.3%[373] - The Advisor earned $0.4 million under the Administration Agreement for the three months ended September 30, 2025, compared to $0.4 million in 2024[375] - The Advisor earned $1.2 million under the Administration Agreement for the nine months ended September 30, 2025, slightly down from $1.3 million in 2024[375] Economic Environment - Economic activity has accelerated, but inflation in the U.S. rose due to global supply chain issues and strong consumer demand, before falling to lower levels at the end of 2023[400] - Persistent inflationary pressures and foreign currency exchange volatility could affect the profit margins of the company's portfolio companies[400]

Financial Performance - Third Quarter 2025 net investment income (NII) was $14.0 million, or $0.32 per basic share, compared to $11.8 million, or $0.32 per basic share for the prior-year period [4]. - Total investment income for the three months ended September 30, 2025, was $26,318 million, an increase from $24,563 million in the same period of 2024, representing a growth of 7.1% [45]. - Net investment income for the nine months ended September 30, 2025, was $36,162 million, compared to $37,357 million for the same period in 2024, reflecting a decrease of 3.2% [45]. - Net increase in net assets resulting from operations for the three months ended September 30, 2025, was $30,722 million, a substantial increase from $7,278 million in the same period of 2024 [45]. - Net investment income per common share (basic) for the three months ended September 30, 2025, was $0.32, unchanged from the same period in 2024 [45]. - Weighted average shares outstanding (basic) increased to 43,101,307 for the three months ended September 30, 2025, compared to 36,571,000 in the same period of 2024 [45]. - Distributions declared per share remained stable at $0.33 for the three months ended September 30, 2025, consistent with the same period in 2024 [45]. - Total expenses for the three months ended September 30, 2025, were $11,952 million, a decrease from $12,353 million in the same period of 2024, reflecting a reduction of 3.2% [45]. - Provision for excise tax for the nine months ended September 30, 2025, was $1,123 million, slightly higher than $1,109 million for the same period in 2024 [45]. Investment Portfolio - The total investment portfolio was valued at $603.5 million as of September 30, 2025 [4]. - The net asset value (NAV) per share increased to $7.12 as of September 30, 2025 [4]. - The annualized portfolio yield on debt investments was 18.6% for the quarter, up from 15.9% in the prior year [6]. - The Company funded three loans totaling $15.0 million during the quarter [4]. - The Company funded a $10.0 million debt investment to a new portfolio company on October 1, 2025 [30]. - The Company continues to hold warrants in several portfolio companies, indicating potential future income from these investments [22][23][25]. - The net unrealized appreciation on investments was $40.5 million, or $0.94 per basic share, compared to $29.3 million, or $0.80 per basic share in the prior-year period [9]. - Net unrealized appreciation on non-affiliate investments for the three months ended September 30, 2025, was $25,659 million, compared to $35,407 million in the same period of 2024, indicating a decrease of 27.7% [45]. Liquidity and Capital Structure - As of September 30, 2025, the company had $130.9 million in cash and a credit facility capacity of $329.0 million [4]. - The Company sold 1,570,248 shares of common stock under its ATM offering program, generating approximately $10.6 million in net proceeds [20]. - Horizon completed a $40 million convertible notes offering and raised approximately $10.6 million through its ATM program [3]. - The Company's net debt to equity leverage ratio was 94%, below the targeted leverage of 120%, with an asset coverage ratio for borrowed amounts at 174% [20]. - The Company has repurchased 167,465 shares of its common stock at an average price of $11.22, totaling $1.9 million since the inception of the stock repurchase program [29]. - As of September 30, 2025, total assets were $759.2 million, down from $821.8 million as of December 31, 2024 [43]. Mergers and Acquisitions - Horizon entered into an agreement to merge with Monroe Capital Corporation (MRCC), subject to shareholder approvals [4]. - The company experienced liquidity events from eight portfolio companies during the quarter [4].