Horizon Technology Finance Corp (NASDAQ:HRZN) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET Company Participants Megan Bacon - Director, IR & Marketing Robert Pomeroy - Chairman & CEO Gerald Michaud - President & Director Daniel Trolio - EVP, CFO & Treasurer Conference Call Participants Paul Johnson - KBW Vilas Abraham - UBS Operator Ladies and gentlemen, greetings, and welcome to the Horizon Technology Finance Corporation Third Quarter 2022 Earnings Call. [Operator Instructions]. As a remind ...

Horizon Technology Finance (NASDAQ:HRZN) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET Company Participants Megan Bacon - Director, Investor Relations & Marketing Rob Pomeroy - Chairman & Chief Executive Officer Jerry Michaud - President Dan Trolio - Chief Financial Officer Conference Call Participants Paul Johnson - KBW Megan Bacon Thank you and welcome to Horizon Technology Finance Corporation Second Quarter 2022 Conference Call. Representing the company today are Rob Pomeroy, Chairman and Ch ...

Debt Investments - As of June 30, 2022, the total debt investment portfolio at fair value was $551.6 million, representing 95.5% of the total portfolio[193] - New debt investments for the three months ended June 30, 2022, amounted to $159.2 million, compared to $67.3 million in the same period of 2021, reflecting a 136% increase[193] - The ending portfolio value as of June 30, 2022, was $577.5 million, up from $404.1 million as of December 31, 2021, indicating a growth of 42.8%[193] - The five largest debt investments represented 22% of total debt investments outstanding as of June 30, 2022, compared to 26% as of December 31, 2021[196] - The company’s debt investments in the biotechnology sector totaled $130.3 million, accounting for 23.6% of the total debt investments as of June 30, 2022[195] - As of June 30, 2022, 76.2% of debt investments were rated 3, indicating a standard level of risk[197] - The dollar-weighted annualized yield on debt investments decreased to 13.4% for the six months ended June 30, 2022 from 15.0% in the same period in 2021[214] - As of June 30, 2022, 100% of the outstanding principal amount of the company's debt investments bore interest at floating rates[289] Investment Income and Expenses - Total investment income increased by $5.1 million, or 37.8%, to $18.6 million for the three months ended June 30, 2022 compared to the same period in 2021[200] - Interest income on debt investments rose by $5.2 million, or 42.0%, to $17.7 million for the three months ended June 30, 2022, driven by a $155.8 million, or 42.5%, increase in the average size of the debt investment portfolio[200] - Total expenses increased by $2.6 million, or 35.2%, to $9.9 million for the three months ended June 30, 2022 compared to the same period in 2021[203] - Interest expense increased by $1.3 million, or 43.0%, to $4.2 million for the three months ended June 30, 2022, primarily due to a $104.5 million, or 47.5%, increase in average borrowings[204] - Net investment income for the three months ended June 30, 2022 was $8.6 million, compared to $6.1 million for the same period in 2021[200] - For the six months ended June 30, 2022, total investment income increased by $6.1 million, or 22.8%, to $32.8 million compared to the same period in 2021[213] - Total expenses for the six months ended June 30, 2022 increased by $3.8 million, or 26.3%, to $18.3 million compared to the same period in 2021[215] - Base management fee expense increased by $1.2 million, or 32.5%, to $4.8 million for the six months ended June 30, 2022 due to the increase in average debt investments[217] Cash and Financing Activities - As of June 30, 2022, the company had cash and investments in money market funds totaling $76.3 million, up from $45.9 million as of December 31, 2021[224] - Operating activities used cash of $110.7 million for the six months ended June 30, 2022, while financing activities provided cash of $141.4 million for the same period[233] - The company expects to raise additional equity and debt capital opportunistically to support future growth[235] - The company believes that current cash and cash generated from operations will be sufficient to meet working capital and capital expenditure commitments for at least the next 12 months[237] Debt Issuance and Obligations - The company issued $57.5 million of 4.875% notes due in 2026, with a stated maturity of March 30, 2026, and may be redeemed at a price of $25 per security plus accrued interest[243] - An additional $50.0 million of 6.25% notes due in 2027 were issued, with a total of $7.5 million sold under the underwriters' option, maturing on June 15, 2027[244] - The outstanding principal balance under the Key Facility was $74.5 million as of June 30, 2022, compared to $53.5 million as of December 31, 2021[231] - The outstanding principal balance under the NYL Facility increased to $136.8 million as of June 30, 2022, from $78.8 million as of December 31, 2021[232] - Total contractual obligations as of June 30, 2022, amounted to $558.05 million, including $368.55 million in borrowings and $189.5 million in unfunded commitments[254] - The company is required to maintain a reserve cash balance, with approximately $0.9 million classified as restricted investments as of June 30, 2022[251] Investment Performance - The company realized net losses on investments totaling $0.9 million, an improvement from net losses of $3.7 million for the same period in 2021[222] - Net unrealized depreciation on investments for the six months ended June 30, 2022, was $2.3 million, compared to net unrealized appreciation of $4.7 million for the same period in 2021[223] - The company received principal payments of $6.96 million on investments for the six months ended June 30, 2022, down from $8.08 million in the same period of 2021[193] Economic Outlook - Economic activity is accelerating across sectors and regions, but inflation is showing signs of acceleration in the U.S. and globally due to supply chain issues and rising energy prices[295] - Inflation is likely to continue in the near to medium-term, particularly in the U.S., which may lead to tighter monetary policy[295] - Persistent inflationary pressures could affect profit margins of portfolio companies[295] Tax and Regulatory Compliance - The company has made requisite distributions to stockholders to qualify for tax treatment applicable to RICs, generally distributing at least 90% of investment company taxable income[280] - The company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained, with no material uncertain tax positions reported as of June 30, 2022[282] Advisor and Management Fees - The Advisor earned $4.7 million and $8.3 million during the three and six months ended June 30, 2022, respectively, under the Investment Management Agreement[264] Shareholder Activities - During the three months ended June 30, 2022, the company sold 868,230 shares of common stock under the 2021 Equity Distribution Agreement, generating net proceeds of approximately $10.3 million[227] - For the six months ended June 30, 2022, the company sold 1,118,401 shares of common stock under the 2021 Equity Distribution Agreement, resulting in net proceeds of approximately $14.2 million[229] - The company has adopted a dividend reinvestment plan (DRIP) for common stockholders, allowing cash distributions to be automatically reinvested unless opted out[261]

Horizon Technology Finance (NASDAQ:HRZN) Q1 2022 Earnings Conference Call May 4, 2022 9:00 AM ET Company Participants Megan Bacon - Director of IR and Marketing Rob Pomeroy - Chairman and CEO Jerry Michaud - President Dan Trolio - CFO Conference Call Participants Paul Johnson - KBW Operator Greetings, and welcome to Horizon Technology Finance Corporation First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DELAWARE 27-2114934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 312 Farmington Avenue (Address of principal executive offices) (Zip Code) Farmington, CT 06032 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 1 ...

Financial Data and Key Metrics Changes - The portfolio at year-end stood at $458 million, an increase of 30% from the end of 2020, despite nearly $175 million in pre-payments [8][10] - Net investment income (NII) for the year was $1.41 per share, exceeding the distribution level of $1.25 per share [9][35] - The company achieved a portfolio yield on debt investments of 16.2% for the second consecutive quarter and a full-year yield of 15.7% [10][33] - The net asset value (NAV) was $11.56 per share, a slight reduction from the prior quarter but up 5% from the end of 2020 [10][37] Business Line Data and Key Metrics Changes - In Q4, the company funded a record number of 17 transactions totaling $80 million [14] - The onboarding yield during the quarter was 11.3%, reflecting the effectiveness of the predictive pricing strategy [14][33] - The committed and approved backlog at year-end was $127 million, the largest year-end total to date [9][16] Market Data and Key Metrics Changes - The venture capital environment saw approximately $330 billion invested in VC-backed companies in 2021, nearly doubling the previous record [19] - VC fundraising for the year surpassed $100 billion for the first time, reaching $128 billion [19] - The total exit value for VC-backed companies was nearly $775 billion, although recent underperformance in SPAC transactions was noted [20] Company Strategy and Development Direction - The company plans to continue expanding its portfolio and generating strong NII, leveraging its predictive pricing strategy [12][26] - The advisor is actively strengthening the Horizon platform through new hires and promotions [12] - The company aims to maintain a disciplined approach in underwriting and seek quality investments to enhance shareholder value [26] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of global events, inflation, and supply chain issues on the broader economy [7][66] - The demand for venture debt is expected to remain strong, with a robust pipeline of investment opportunities [13][21] - The company believes it is well-positioned to compete in the current environment, despite challenges in the public markets [21][55] Other Important Information - The company raised approximately $30 million of equity in 2021, all at a premium to NAV [11] - The company ended the year with available liquidity of $71 million, consisting of $46 million in cash and $25 million in credit facilities [29] - The debt-to-equity ratio stood at 1.1 to 1, lower than the target leverage of 1.2 to 1 [30] Q&A Session Summary Question: Is venture debt becoming more relevant in current conversations? - Management noted that in tightening markets, companies often seek non-dilutive capital like venture debt to extend their cash runway [42][43] Question: What is the outlook for deploying the new capital capacity? - The company plans to deploy debt to grow towards its target leverage of 1.2 times, utilizing both cash and available credit [44] Question: How does the company view the impact of valuation pullbacks? - Management acknowledged that while there are opportunities due to companies seeking liquidity, caution is necessary as some companies may struggle to raise equity at appropriate valuations [52][55] Question: Will Q1 prepayment activity be affected by current market dynamics? - Management indicated that while Q1 is typically slow for prepayments, current market conditions may further temper prepayment activity [56][58] Question: What is the outlook for credit quality and loan-to-value ratios? - The company continues to underwrite to low loan-to-values and is cautious about macroeconomic impacts on portfolio companies [64][66]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ◻ 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00802 HORIZON TECHNOLOGY FINANCE CORPORATION (Exact name of registrant as specified in its charter) | DELAWARE | 2 ...

Horizon Technology Finance Corporation (NASDAQ:HRZN) Q3 2021 Earnings Conference Call October 27, 2021 9:00 AM ET Company Participants Megan Bacon - Director of Investor Relations & Marketing Rob Pomeroy - Chairman & Chief Executive Officer Jerry Michaud - President & Director Dan Trolio - Executive Vice President & Chief Financial Officer Conference Call Participants Sarkis Sherbetchyan - B.Riley Securities Ryan Lynch - KBW Operator Greetings. Welcome to Horizon Technology Finance Corporation Third Quarter ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____TO COMMISSION FILE NUMBER: 814-00802 HORIZON TECHNOLOGY FINANCE CORPORATION (Exact name of registrant as specified in its charter) ...

Horizon Technology Finance Corporation (NASDAQ:HRZN) Q2 2021 Earnings Conference Call July 28, 2021 9:00 AM ET Company Participants Megan Fox - Investor Relations Rob Pomeroy - Chairman and Chief Executive Officer Jerry Michaud - President Dan Trolio - Chief Financial Officer Conference Call Participants Sarkis Sherbetchyan - B. Riley Securities Ryan Lynch - KBW Operator Greetings and welcome to Horizon Technology Finance Corporation's Second Quarter 2021 Earnings Conference Call. At this time, all particip ...