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, 2020 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 27-21 ...

Financial Data and Key Metrics Changes - The company generated net investment income of $0.34 per share, which exceeded distributions, marking a decrease from $0.42 per share in Q3 2019 [48] - Total investment income for the third quarter was $12.3 million, an 8% increase from $11.4 million in the prior year period, primarily due to a 21% increase in interest income on investments [45] - The debt portfolio yield was 15.1% for the quarter, down from 17.7% in the same quarter last year [46] - The company's NAV as of September 30 was $11.17 per share, a decrease from $11.64 as of June 30, 2020 [51] Business Line Data and Key Metrics Changes - The company made a total of $16 million in investments during the quarter, with an onboarding yield of 11.9% [28] - The debt investment portfolio on a net cost basis stood at $319 million, a 10% reduction from June 30, 2020 [46] - The company experienced $43 million in principal prepayments during the quarter, which significantly contributed to net investment income [29] Market Data and Key Metrics Changes - Approximately $38 billion was invested in VC-backed companies in Q3, which was on par with the prior year quarter despite COVID-19 [37] - $14 billion was raised in VC fundraising during the third quarter, surpassing the total of $55 billion raised in 2019 [38] - The IPO window opened considerably in Q3, with 37 venture-backed IPOs contributing to a total exit value of $104 billion, the second highest total on record [39] Company Strategy and Development Direction - The company maintains a cautious approach to its venture lending strategy, incorporating a COVID-19 impact analysis in underwriting new investments [26] - The company aims to selectively pursue new investment opportunities while managing its portfolio proactively [22] - The company plans to maintain its monthly distribution level at $0.10 per share through March 2021, reflecting its outlook for the remainder of 2020 and early 2021 [23] Management's Comments on Operating Environment and Future Outlook - Management noted that while some portfolio companies faced challenges, others thrived during the pandemic, leading to a mixed impact on the portfolio [14] - The company expects to see growth in the fourth quarter, supported by a strong pipeline of new investment opportunities totaling $372 million [34] - Management expressed confidence in the portfolio's ability to grow despite the economic downturn, with over 90% of portfolio companies having adequate cash resources [21] Other Important Information - The company raised nearly $13 million in low-cost and accretive net equity through its at-the-market stock offering during the quarter [12] - The company downgraded its debt investments in three companies, placing them on nonaccrual status due to uncertain outcomes [16] - The company has a committed backlog of $96 million, with $60 million committed to current life science portfolio companies [33] Q&A Session Summary Question: Expectations for repayments and portfolio growth in Q4 - Management noted that prepayments exceeded originations in Q3 but expressed confidence in portfolio growth for Q4, with a strong pipeline of transactions [60] Question: Current yields and covenants on new investments - Management indicated that pricing has remained consistent during COVID-19, with a stronger covenant position due to ongoing uncertainty [63] Question: Discussion on downgraded credits - The third downgraded credit was Titan Pharmaceuticals, which is in the process of settlement [67] Question: Availability of the New York Life facility - Management explained that the availability decreased due to prepayments and that the facility is in a good position for future originations [73] Question: ATM equity capital raise rationale - Management stated that the equity capital raise was opportunistic, taking advantage of favorable market conditions to support future growth [82]

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, 2020 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 (NASDAQ:HRZN) Q2 2020 Earnings Conference Call July 29, 2020 9:00 AM ET Company Participants Megan Bacon – Marketing Support Manager Rob Pomeroy – Chairman and Chief Executive Officer Jerry Michaud – President Dan Trolio – Chief Financial Officer Conference Call Participants Tim Hayes – B. Riley FBR Ryan Lynch – KBW Operator Greetings, and welcome to Horizon Technology Finance Corporation Second Quarter 2020 Earnings Call. At this time all participants are in a listen-only mode. A ...

Debt Investment Portfolio - As of June 30, 2020, the total fair value of the debt investment portfolio was $342.7 million, representing 96.3% of the total portfolio[189] - New debt investments for the three months ended June 30, 2020, amounted to $54.9 million, compared to $55.1 million in the same period of 2019[190] - The ending portfolio value as of June 30, 2020, was $355.9 million, an increase from $274.8 million as of June 30, 2019[190] - The largest sector in the debt investment portfolio as of June 30, 2020, was Medical Device, valued at $91.7 million, accounting for 26.8% of the total portfolio[191] - The company received principal payments of $4.9 million on investments during the three months ended June 30, 2020[190] - The net unrealized depreciation on investments for the six months ended June 30, 2020, was $6.5 million[190] - The company’s five largest debt investments represented 25% of total debt investments outstanding as of June 30, 2020[192] - The company has a total of 35 debt investments, unchanged from December 31, 2019[189] - As of June 30, 2020, the weighted average credit rating of the company's debt investments was 2.9, down from 3.1 as of December 31, 2019[194] - The debt investment portfolio as of June 30, 2020, included 35 investments with a fair value of $342.7 million, compared to 35 investments with a fair value of $288.4 million as of December 31, 2019[194] - The percentage of debt investments rated 4 decreased from 15.7% in December 2019 to 6.9% in June 2020, while those rated 3 increased from 75.0% to 77.4%[194] Financial Performance - Total investment income for the three months ended June 30, 2020, was $13,524,000, an increase from $10,470,000 in the same period of 2019, representing a growth of approximately 29.5%[209] - Net investment income for the three months ended June 30, 2020, was $6,706,000, compared to $5,012,000 for the same period in 2019, reflecting an increase of about 33.8%[209] - Average debt investments at fair value increased to $328,036,000 for the three months ended June 30, 2020, up from $239,284,000 in 2019, indicating a growth of approximately 37.2%[209] - Total expenses for the three months ended June 30, 2020, were $6,818,000, compared to $6,166,000 in 2019, which is an increase of about 10.6%[209] - Net unrealized appreciation on investments for the three months ended June 30, 2020, was $1,944,000, compared to $4,124,000 in 2019, showing a decrease of approximately 52.8%[209] - Net increase in net assets resulting from operations for the three months ended June 30, 2020, was $7,925,000, compared to $4,538,000 in 2019, indicating an increase of approximately 74.5%[209] - Total investment income increased by $3.1 million, or 29.2%, to $13.5 million for the three months ended June 30, 2020 compared to the same period in 2019[210] - Interest income on debt investments rose by $2.9 million, or 31.0%, to $12.1 million for the three months ended June 30, 2020, driven by a 37.1% increase in the average size of the debt investment portfolio[210] - Fee income increased by $0.9 million, or 116.4%, to $1.7 million for the three months ended June 30, 2020, primarily due to higher prepayment fee rates and increased amendment fee income[212] - Net expenses increased by $1.4 million, or 24.9%, to $6.8 million for the three months ended June 30, 2020 compared to the same period in 2019[214] - Interest expense increased by $0.4 million, or 21.1%, to $2.6 million for the three months ended June 30, 2020, due to a 41.5% increase in average borrowings[215] - Total investment income for the six months ended June 30, 2020 increased by $4.9 million, or 25.9%, to $23.6 million compared to the same period in 2019[227] - Interest income on debt investments for the six months ended June 30, 2020 increased by $4.8 million, or 28.3%, to $21.7 million, attributed to a 35.2% increase in the average size of the debt investment portfolio[227] - Net expenses for the six months ended June 30, 2020 increased by $2.1 million, or 20.1%, to $12.6 million compared to the same period in 2019[232] - Performance-based incentive fee expense increased by $0.7 million, or 33.3%, to $2.7 million for the six months ended June 30, 2020, due to a 33.3% increase in Pre-Incentive Fee Net Investment Income[236] Borrowings and Capital Structure - The outstanding principal balance under the Key Facility was $45.0 million as of June 30, 2020, compared to $17.0 million as of December 31, 2019[252] - As of June 30, 2020, the company had a borrowing capacity of $86.8 million under the NYL Facility[253] - The Asset-Backed Notes had an outstanding principal balance of $100.0 million as of June 30, 2020[265] - The company has segregated approximately $1.2 million as restricted investments in money market funds to pay monthly interest and principal payments on the Asset-Backed Notes[266] - As of June 30, 2020, the company had $195.6 million in total borrowings, with $14.9 million due within one year and $159.3 million due in 1-3 years[270] - The company had unfunded commitments of $75.9 million as of June 30, 2020, which are not reflected on the balance sheet[270] Management and Operations - The company’s investment objective is to maximize total return through current income and capital appreciation from debt investments and warrants[183] - The company is externally managed and operates as a Business Development Company (BDC) under the Investment Company Act of 1940[184] - The Advisor earned $3.3 million and $6.0 million in management fees during the three and six months ended June 30, 2020, respectively[279] - The company expects to raise additional equity and debt capital opportunistically to support future growth, subject to market conditions[256] - The company intends to distribute all or substantially all of its investment company taxable income to remain subject to taxation as a RIC[257] - The company has adopted an "opt out" dividend reinvestment plan (DRIP) for common stockholders[277] - The company must distribute at least 90% of its net ordinary income and net short-term capital gains to qualify as a RIC[275] - The company has made and intends to continue making requisite distributions to stockholders to qualify for tax treatment applicable to RICs, generally at least 90% of investment company taxable income[297] Tax and Regulatory Considerations - The company may incur a 4% excise tax on taxable income in excess of current year distributions, if applicable[298] - The company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained by tax authorities, with no material uncertain tax positions reported as of June 30, 2020[301] Investment Strategy and Risk Management - The company has used hedging instruments in the past to protect against interest rate fluctuations and may continue to do so in the future[305] - The company expects that a 300 basis point increase in interest rates would result in an increase of $2.948 million in net assets from operations[304] - The company recorded warrants as assets at estimated fair value on the grant date, which are recognized as interest income over the contractual life of the related debt investment[294] - Realized gains or losses on investments are calculated using the specific identification method, reflecting the difference between net proceeds and amortized cost basis[296] - The company expects to continue funding investments with borrowings, making net income dependent on the difference between borrowing rates and investment rates[308]

Horizon Technology Finance (NASDAQ:HRZN) Q1 2020 Earnings Conference Call April 29, 2020 9:00 AM ET Company Participants Megan Bacon – Marketing Support Manager Rob Pomeroy – Chairman and Chief Executive Officer Jerry Michaud – President Dan Trolio – Chief Financial Officer Dan Devorsetz – Chief Investment Officer Conference Call Participants Tim Hayes – B. Riley FBR Ben Zucker – Aegis capital Ryan Lynch – KBW Operator Greetings, and welcome to the Horizon Technology Finance Corporation’s First Quarter 2020 ...

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 MARCH 31, 2020 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) DELA ...

Financial Data and Key Metrics Changes - In Q4 2019, Horizon earned total investment income of $13 million, a 47% increase from $8.8 million in the prior year period, primarily due to higher interest income from a larger loan portfolio and increased prepayment fees [47] - Net investment income (NII) per share for Q4 was $0.43, compared to $0.42 in Q3 2019 and $0.34 in Q4 2018 [52] - The company's net asset value (NAV) as of December 31 was $11.83 per share, up from $11.67 at the end of Q3 2019 and $11.64 at the end of Q4 2018 [55] Business Line Data and Key Metrics Changes - Horizon funded 7 new loans totaling $65 million in Q4, increasing net debt investments by $34 million from September 30 [15] - The debt investment yield for Q4 was 17.6%, slightly down from 17.7% in Q3 but up from 16.7% in Q4 2018 [48][22] - The company maintained a premium yielding debt portfolio, with an onboarding yield of 12.2% in Q4, up from 11.9% in Q3 [48][21] Market Data and Key Metrics Changes - The venture capital environment saw approximately $34 billion invested in VC-backed companies in Q4 2019, with a total exit value of $19 billion for the quarter [35][33] - Health care and life science sector IPOs continued to dominate the overall IPO market, contributing to a record-breaking total exit value of $256 billion for the year [35][36] Company Strategy and Development Direction - Horizon aims to grow its venture debt portfolio while ensuring the stability of its credit profile, with a focus on technology, health care tech, and life sciences [17][19] - The company plans to leverage its strong capital position and lower cost of capital to enhance portfolio growth [41] - Horizon will not commit additional capital to its joint venture, opting instead to focus on transactions on its balance sheet [111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow the portfolio and achieve NII exceeding distributions, supported by strong demand in target markets [17][19] - The ongoing coronavirus epidemic and U.S. election year distractions were noted as potential risks that could impact investor confidence [42] - Management emphasized a cautious approach to new investments, particularly in light of the uncertainty surrounding the coronavirus [88][116] Other Important Information - Horizon declared monthly distributions of $0.10 per share for April, May, and June 2020, along with a special distribution of $0.05 per share payable in April [54] - The company ended 2019 with a record-high investment portfolio of $320 million, consisting of debt investments in 35 companies and warrant and equity positions in 75 companies [57] Q&A Session Summary Question: What drove the dividend from the JV this quarter? - The dividend was driven by prepayments totaling about $10 million, which contributed to accelerated income [64] Question: Can you provide more color on the non-accrual this quarter? - The non-accrual was due to concerns about the company's ability to raise capital and execute strategic opportunities [66] Question: Are there any companies in the portfolio with direct or indirect exposure to the coronavirus? - Most companies are in development stages and not directly impacted, but some have supply chain issues [72][76] Question: Are you seeing changes in demand from portfolio companies to take on more debt? - Discussions indicate continued support from investors, and there is no immediate risk to the portfolio [82] Question: How are you evaluating deploying new capital given the uncertainty of the coronavirus? - A cautious approach is being taken, with a focus on the long-term development stages of portfolio companies [116]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 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 27-2114934 (State or ot ...

Horizon Technology Finance (NASDAQ:HRZN) Q3 2019 Earnings Conference Call October 30, 2019 9:00 AM ET Company Participants Megan Bacon – Marketing Support Manager Rob Pomeroy – Chairman and Chief Executive Officer Jerry Michaud – President Dan Trolio – Chief Financial Officer Conference Call Participants Paul Johnson – KBW Operator Greetings, and welcome to Horizon Technology Finance Corporation Third Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A ...