Financial Position - Total assets increased by $3,333,148, or 4.1%, from $81,021,982 on December 31, 2023, to $84,355,130 on March 31, 2024[157]. - Total liabilities rose by $2,579,022, or 12.8%, from $20,206,769 to $22,785,791 during the same period[157]. - Net asset value per share (NAV) was $23.85 at March 31, 2024, compared to $23.56 at December 31, 2023[157]. Investment Income - Total investment income for the three months ended March 31, 2024, was $2,067,219, an increase of $215,721, or 11.7%, from $1,851,498 in the same period of 2023[165]. - Interest from portfolio companies increased by $516,745, or 39.8%, from $1,296,903 to $1,813,648 year-over-year[165]. - Interest from portfolio companies increased by approximately 40% during the three months ended March 31, 2024, compared to the same period in 2023, due to more interest-yielding investments originated[166]. - Total dividend and other investment income for the three months ended March 31, 2024, was $151,835, a decrease from $474,743 in the same period in 2023[168]. - Net investment income for the three months ended March 31, 2024, was $839,585, compared to $714,916 for the same period in 2023[175]. Expenses and Liabilities - Total expenses for the three months ended March 31, 2024, were $1,226,856, representing a 17.1% increase from $1,047,845 in the same period in 2023[169]. - Interest expense rose to $390,020 for the three months ended March 31, 2024, from $158,400 in the same period in 2023, reflecting higher average outstanding debt balances[170]. - The company has a $25 million senior secured revolving credit facility with $19,200,000 drawn as of March 31, 2024, with an applicable interest rate of 8.84%[159]. - The outstanding balance drawn on the Credit Facility at March 31, 2024, was $19,200,000, with an applicable interest rate of 8.84%[185]. Unrealized Gains and Losses - Unrealized appreciation, net decreased by $2,890,296, or 33.0%, from $8,760,106 to $5,869,810 during the same period[161]. - The change in unrealized depreciation of investments for the three months ended March 31, 2024, was $(2,890,296), compared to an appreciation of $1,401,973 in the same period in 2023[178]. - The company recognized a net realized gain of $3,450,092 on the sale of 194,934 shares of Class A common stock of ACV during the three months ended March 31, 2024[176]. Cash and Liquidity - As of March 31, 2024, cash approximated 1.2% of net assets, down from 5.4% at December 31, 2023[158]. - As of March 31, 2024, total liquidity consisted of approximately $759,000 in cash and $5,800,000 remaining availability on the Credit Facility[183]. Interest Rate Sensitivity - As of March 31, 2024, all debt investments had fixed interest rates, insulating them from market interest rate changes[193]. - A 1% increase in interest rates could lead to a decrease in net investment income by $192,000, while a 1% decrease could increase net investment income by $192,000[195]. - The company’s net investment income is dependent on the difference between borrowing rates and the rates earned on invested proceeds[194]. - Changes in interest rates can impact the company's ability to acquire loans and securities, as well as the value of its investment portfolio[194]. - The analysis of interest rate sensitivity does not account for changes in credit quality or other business developments that could affect net investment income[195]. - Future interest rate fluctuations may limit the company's ability to benefit from lower interest rates if hedging is implemented[196]. - The company does not currently engage in any hedging activities but may consider using standard hedging instruments in the future[196]. - The company is currently not engaged in any hedging activities to mitigate interest rate risks[196]. Fair Value Determination - Fair value of investments is determined by RCM and approved by the Board, with inherent risks in valuation due to market uncertainties[197]. - The company may face material risks associated with fair value determinations, which could differ significantly from actual liquidation values[197].

Financial Data and Key Metrics Changes - The company reported total investment income for Q4 2023 of $1.9 million, an increase of 11% year-over-year, driven by a 47% rise in interest income [28] - Full-year total investment income grew 27% to $7.3 million, reflecting new debt instruments [28] - Net investment income per share for Q4 2023 was $0.37, down from $0.48 in Q4 2022, while adjusted net investment income per share increased 11% to $1.46 for the full year [13][14] Business Line Data and Key Metrics Changes - The portfolio consisted of 64% debt investments, up from 56% at the end of 2022, resulting in improved portfolio yield [22] - The company invested a total of $20.3 million across nine transactions in 2023, primarily in interest-yielding assets [9] - The largest industry concentration, Professional Services, increased to 42% of the total portfolio, while Automotive and Consumer Products saw declines [10] Market Data and Key Metrics Changes - The company held investments with a fair value of $77.1 million at year-end, an increase of 25% from December 31, 2022 [24] - The top five portfolio companies represented 45% of the total portfolio at year-end, with Tilson as the largest investment at $10.6 million [27] Company Strategy and Development Direction - The company aims to grow by focusing on debt and related equity investments in privately held lower middle market companies to drive investment income growth and increase dividends [39] - Future investments are expected to range from $2 million to $4 million, targeting opportunities with favorable risk-adjusted returns [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong balance sheet and significant liquidity position, which positions the company well for future investments [30] - The company anticipates that its portfolio transformation towards more income-producing investments will support increased dividend levels over time [14] Other Important Information - Total dividends paid in 2023 were $1.33 per share, a 60% increase over 2022, including a special dividend of $0.38 per share in Q4 [6][7] - The net asset value at December 31, 2023, was $60.8 million, up 5% from the end of 2022, with net asset value per share increasing to $23.56 [37] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session [1]

($ in thousands, except per share data) • Driven by a 47% increase in interest from portfolio companies 10 Total investment income grew 27% © 2023 Rand Capital Corporation Nasdaq: RAND Net assets at 12/31/2022 Net investment income Net realized gain on sales and dispositions Net change in unrealized Cash dividend Net assets at 12/31/2023 $57,721 $2,968 $691 $2,868 ($3,433) $60,815 of investments appreciation on investments $57,721,320 $60,815,213 STRONG AND FLEXIBLE BALANCE SHEET 13 2024 OBJECTIVES • Levera ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [ x ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 [ ] 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: 814-00235 Rand Capital Corporation (Exact name of registrant as specified in its charter) New York 16-0961359 (S ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Rand Capital's 2023 performance reflects strong growth, driven by a strategic shift to debt investments, boosting income, dividends, and NAV [Fourth Quarter and Full Year 2023 Highlights](index=1&type=section&id=Fourth%20Quarter%20and%20Full%20Year%202023%20Highlights) Rand Capital reported strong growth for 2023, with a 27% increase in total investment income to $7.3 million, driven by a strategic shift towards debt investments, leading to a 60% increase in total dividends paid per share to $1.33, and a 5% growth in net asset value (NAV) per share to $23.56 by year-end, while the fourth quarter saw an 11% rise in total investment income to $1.9 million Full Year 2023 vs 2022 Performance | Metric | 2023 ($) | 2022 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment Income | $7.3 million | $5.8 million | +27% | | Total Dividends per Share | $1.33 | $0.83 (implied) | +60% | | Net Asset Value (NAV) per Share | $23.56 | $22.36 | +5% | | Total Investments | $20.3 million | N/A | N/A | Q4 2023 vs Q4 2022 Performance | Metric | Q4 2023 ($) | Q4 2022 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment Income | $1.9 million | $1.7 million | +11% | | Net Investment Income | $962,000 | $1.2 million | -20% | | Net Investment Income per Share | $0.37 | $0.48 | -23% | | Adjusted NII per Share (Non-GAAP) | $0.40 | $0.41 | -2.4% | - The company's strategic shift towards income-producing investments resulted in the portfolio's debt instrument composition increasing from **56%** at the end of 2022 to **64%** at the end of 2023[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The President and CEO, Daniel P. Penberthy, attributed the strong 2023 results to the successful execution of their strategy, highlighting over $20 million in new investments, primarily in income-producing assets, which drove higher investment income and enabled a 60% increase in dividends, with the company entering 2024 with a strong balance sheet and a solid pipeline of opportunities, intending to continue increasing its portfolio's composition with new debt investments - Management emphasized the successful execution of their strategy, investing over **$20 million** in 2023, which was primarily directed towards income-producing assets[3](index=3&type=chunk) - The increase in investment income directly supported a **60%** rise in dividends paid to shareholders in 2023, including a regular quarterly dividend increase and a special dividend[3](index=3&type=chunk) - Looking ahead to 2024, the company plans to leverage its strong balance sheet and capital sources to continue executing its strategy, focusing on new debt investments from a solid opportunity pipeline[4](index=4&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) As of December 31, 2023, Rand's investment portfolio fair value grew 25% year-over-year to $77.1 million across 30 businesses, with the portfolio composition shifting further into debt, comprising 64% debt, 27% private equity, and 9% public equity, and the annualized weighted average yield on debt investments increased to 13.6% from 12.6% in 2022, with key activities in 2023 including $20.3 million in new investments, the profitable sale of DSD for $6.7 million, and gains of $1.7 million from selling ACV Auctions securities Portfolio Composition (as of Dec 31, 2023) | Metric | Value ($) / Percentage (%) | | :--- | :--- | | Total Fair Value | $77.1 million | | YoY Growth | 25% | | Number of Businesses | 30 | | Debt Investments | 64% | | Private Equity | 27% | | Public Equity | 9% | | Avg. Yield on Debt | 13.6% | - In 2023, the company invested a total of **$20.3 million** across nine transactions, focusing primarily on interest-yielding assets[10](index=10&type=chunk) - Significant exit activity included the sale of portfolio company DSD, generating **$6.7 million** in proceeds and a net gain of **$2.5 million**, and the sale of ACV Auctions public stock for **$1.7 million** in gains[21](index=21&type=chunk) [Liquidity, Capital Resources, and Dividends](index=3&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Dividends) At year-end 2023, Rand held $3.3 million in cash and had significant available liquidity through its holdings in publicly traded BDCs ($4.4 million) and ACV Auctions ($3.0 million), with $16.3 million in borrowings outstanding on its $25.0 million credit facility at an interest rate of 8.9%, and total dividends of $1.33 per share were paid in 2023, with a regular quarterly dividend of $0.25 per share declared for Q1 2024 Liquidity Position (as of Dec 31, 2023) | Item | Amount ($) | | :--- | :--- | | Cash | $3.3 million | | Publicly Traded BDC Holdings | $4.4 million | | ACV Auctions Holdings | $3.0 million | | Credit Facility Borrowings | $16.3 million | | Credit Facility Capacity | $25.0 million | | Interest Rate on Borrowings | 8.9% | - In 2023, Rand paid total dividends of **$3.4 million**, which included four regular quarterly dividends and a special year-end dividend, amounting to **$1.33 per share**[5](index=5&type=chunk)[16](index=16&type=chunk) - The company declared a regular quarterly cash dividend of **$0.25 per share** on February 26, 2024, payable in March 2024[17](index=17&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Rand's 2023 financials reflect asset growth from investments, increased liabilities, and a net increase in assets from operations [Consolidated Statements of Financial Position](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of December 31, 2023, Rand's total assets increased to $81.0 million from $63.5 million in the prior year, primarily due to a 25% growth in the fair value of investments to $77.1 million, with total liabilities rising significantly to $20.2 million from $5.8 million, driven by a substantial increase in borrowings on the line of credit to $16.3 million, consequently, total stockholders' equity (net assets) grew to $60.8 million, with NAV per share rising to $23.56 from $22.36 Balance Sheet Summary (Audited) | Account | Dec 31, 2023 ($) | Dec 31, 2022 ($) | | :--- | :--- | :--- | | Total Investments, at fair value | $77,125,712 | $61,504,259 | | Total Assets | $81,021,982 | $63,481,192 | | Line of Credit | $16,250,000 | $2,550,000 | | Total Liabilities | $20,206,769 | $5,759,872 | | Total Stockholders' Equity | $60,815,213 | $57,721,320 | | NAV per Share | $23.56 | $22.36 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the full year 2023, total investment income rose 27% to $7.3 million, driven by higher interest from portfolio companies, however, total expenses surged to $4.2 million from $1.1 million in 2022, mainly due to a $1.8 million swing in capital gains incentive fees (from a credit to an expense) and a nearly $1 million increase in interest expense, which led to a decrease in net investment income to $3.0 million from $4.4 million, and a significant net realized and unrealized gain on investments of $3.6 million resulted in a net increase in net assets from operations of $6.5 million, a sharp reversal from the prior year's loss Full Year Income Statement Summary (Audited) | Account | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Total Investment Income | $7,338,163 | $5,765,181 | | Total Expenses | $4,178,319 | $1,119,229 | | Net Investment Income | $2,967,733 | $4,430,410 | | Net Realized/Unrealized Gain (Loss) | $3,558,917 | ($5,312,259) | | Net Increase (Decrease) in Net Assets | $6,526,650 | ($881,849) | Q4 Income Statement Summary (Unaudited) | Account | Q4 2023 ($) | Q4 2022 ($) | | :--- | :--- | :--- | | Total Investment Income | $1,930,119 | $1,732,986 | | Total Expenses | $1,013,797 | $371,090 | | Net Investment Income | $961,604 | $1,230,104 | | Net Increase in Net Assets | $1,088,979 | $320,175 | [Consolidated Statements of Changes in Net Assets](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Rand Capital's net assets increased from $57.7 million at the beginning of 2023 to $60.8 million at year-end, with growth driven by a $6.5 million net increase from operations, comprised of $3.0 million in net investment income and $3.6 million in net realized and unrealized gains, partially offset by $3.4 million in dividend distributions to shareholders Changes in Net Assets for the Year Ended Dec 31, 2023 (Audited) | Item | Amount ($) | | :--- | :--- | | Net Assets at Beginning of Year | $57,721,320 | | Net Increase from Operations | $6,526,650 | | Declaration of Dividends | ($3,432,757) | | **Net Assets at End of Year** | **$60,815,213** | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures, such as Adjusted Net Investment Income per Share, offer a clearer view of operational performance by excluding volatile incentive fees [Reconciliation of GAAP to Non-GAAP Adjusted Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Adjusted%20Measures) The company provides non-GAAP measures, Adjusted Expenses and Adjusted Net Investment Income per Share, which exclude the impact of capital gains incentive fees, with adjusted expenses for the full year 2023 at $3.4 million, and Adjusted net investment income per share for 2023 at $1.46, an 11% increase from $1.31 in 2022, which management believes better reflects the underlying operational trends by removing the volatility of incentive fee accruals - Rand presents non-GAAP measures to provide investors with information management uses to measure financial and business trends by excluding the effects of capital gains incentive fee accruals[32](index=32&type=chunk)[34](index=34&type=chunk) Adjusted Net Investment Income per Share (Non-GAAP) | Period | 2023 ($/share) | 2022 ($/share) | Change (%) | | :--- | :--- | :--- | :--- | | Full Year | $1.46 | $1.31 | +11% | | Q4 | $0.40 | $0.41 | -2.4% | Adjusted Total Expenses (Non-GAAP) | Period | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Full Year | $3,373,619 | $2,167,989 | | Q4 | $949,797 | $539,090 |

Financial Performance - Net investment income per share was $031 in Q3 2023, compared to $039 in Q3 2022[1] - Adjusted net investment income per share was $029 in Q3 2023, compared to $040 in Q3 2022[1] - Total investment income increased by 12% to $1741 million in Q3 2023, driven by a 40% increase in interest from portfolio companies[27,42] - Adjusted expenses in Q3 2023 were $851000, compared to $477000 in Q3 2022, reflecting higher interest expense[7,27] - Net asset value (NAV) per share was $2377 as of September 30, 2023, up 6% from year-end 2022[28,42] Portfolio and Investments - Total portfolio investments at fair value were $747 million[20,30] - Publicly-traded equity securities of $72 million are available for future liquidity opportunities[19] - The company completed two new investments for $78 million in Q3 2023[42] - Top five portfolio investments total $313 million, representing 42% of the total portfolio[25] - Debt investments constitute 63% of the portfolio, while publicly traded equities account for 10%[44] Liquidity and Capital Resources - The company had total liquidity of approximately $22 million at the end of Q3 2023[42] - Outstanding borrowings of $138 million under the $25 million senior secured revolving credit facility, with an interest rate of 88% at quarter-end[19] - The company paid a regular quarterly dividend of $025 per share for Q3 2023[19,42]

Financial Data and Key Metrics Changes - Total investment income increased by 12% for the quarter, driven by sustained growth in interest income from portfolio companies [5][21] - Net investment income per share was $0.31, down from $0.39 year-over-year, primarily due to higher expenses related to debt financing [5][26] - Net asset value per share was $23.77, relatively flat for the quarter but up 6% since year-end 2022 [5][28] Business Line Data and Key Metrics Changes - The portfolio consisted of investments with a fair value of nearly $75 million across 30 portfolio businesses, reflecting two new investments totaling $7.8 million [11][12] - The portfolio comprised approximately 63% in fixed-rate debt investments, with an annualized weighted average yield of 13.45% [12] - Professional services increased to 40% of the total portfolio, while manufacturing and consumer products saw declines [18][19] Market Data and Key Metrics Changes - The company completed two new investments during the quarter, including a $4 million investment in All About People and a $3.8 million investment in First Coast Mulch [14][15][16] - The company held almost 195,000 shares of ACV, valued at $15.18 at quarter end, representing approximately 4% of the portfolio's total fair value [13] Company Strategy and Development Direction - The company continues to focus on high-quality debt investments as a cornerstone of its strategy to drive earnings potential and support growing dividends [31] - The management expressed confidence in the deal flow and unique market position to support future dividends [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the strength and execution of the company's strategy, indicating a positive outlook for future investments [4][34] - The company maintains a strong balance sheet and significant liquidity, with approximately $22 million available for future investments [29] Other Important Information - Total expenses for the quarter were approximately $810,000, up from $499,000 in the prior year, largely due to increased interest expenses [23] - The company paid a quarterly cash dividend of $0.25 per share during the third quarter [10] Q&A Session Summary - No specific questions or answers were documented in the provided content [35][36]

Financial Performance - Investment income for the three months ended September 30, 2023, increased by 12.0% to $1,741,114 compared to $1,554,265 for the same period in 2022[167]. - Total investment income for the three months ended September 30, 2023, was $154,416, a decrease from $421,659 in the same period of 2022[171]. - Total investment income for the nine months ended September 30, 2023, was $5,408,044, a 34.1% increase from $4,032,195 in the same period of 2022[183]. - The net investment income for the nine months ended September 30, 2023, was $2,006,129, a decrease of 37.2% compared to $3,200,306 for the same period in 2022[196]. - The realized gain on investments before income taxes for the nine months ended September 30, 2023, was $1,068,904, an increase of 54.8% from $690,591 in 2022[197]. - The net increase in net assets from operations for the nine months ended September 30, 2023, was $5,437,671, compared to a decrease of $(1,202,024) in 2022[207]. Assets and Liabilities - Total assets increased by 24.5% to $79,039,682 as of September 30, 2023, compared to $63,481,192 at December 31, 2022[160]. - Total liabilities rose significantly by 207.1% to $17,687,405 from $5,759,872[160]. - Cash represented 5.7% of net assets at September 30, 2023, compared to 2.4% at December 31, 2022[161]. - Total investments at fair value increased by 21.4% to $74,684,285 as of September 30, 2023, from $61,504,259 at December 31, 2022[164]. Investment Activities - New investments totaled $18,060,000 during the nine months ended September 30, 2023, with significant contributions from Inter-National Electronic Alloys LLC and Highland All About People Holdings, Inc.[166]. - Interest from portfolio companies rose by 39.6% to $1,535,677 for the three months ended September 30, 2023[167]. - Interest from portfolio companies for the nine months ended September 30, 2023, was $4,306,120, a 42.7% increase from $3,016,976 in the same period of 2022[183]. - The company recognized a net realized gain of $1,718,767 on the sale of 125,000 shares of Class A common stock of ACV Auctions, Inc. during the nine months ended September 30, 2023[199]. Expenses - Total expenses for the three months ended September 30, 2023, were $809,936, representing a 62.3% increase from $498,959 in the same period of 2022[172]. - Total expenses for the nine months ended September 30, 2023, were $3,164,522, a significant increase of 323.0% from $748,139 in the same period of 2022[191]. - The base management fee for the nine months ended September 30, 2023, was $769,869, an increase of 10.5% from $696,772 in 2022[195]. - Administrative fees incurred during the nine months ended September 30, 2023, were $111,750, with no corresponding expense in 2022[194]. Dividends and Cash Flow - The company declared quarterly cash dividends of $0.20, $0.25, and $0.25 for the first, second, and third quarters of 2023, respectively[157]. - As of September 30, 2023, the total liquidity consisted of approximately $3,480,000 in cash, with an unused line of credit balance of $11,250,000 under the $25 million Credit Facility[209][210]. - The outstanding balance drawn on the Credit Facility at September 30, 2023, was $13,750,000, with an applicable interest rate of 8.81%[210][211]. - The company anticipates continuing to fund investment activities through cash generated from operations and the sale of publicly traded liquid investments[214]. Risk Management - The company does not currently engage in any hedging activities but may consider using standard hedging instruments in the future to mitigate interest rate fluctuations[220]. - Investments are carried at fair value, determined by RCM and approved by the Board, with inherent risks in estimating fair values due to market uncertainties[221]. - The company acknowledges that actual results may differ materially from hypothetical analyses regarding interest rate sensitivity under its Credit Facility[219].

Financial Data and Key Metrics Changes - Total investment income increased by 34% year-over-year to $1.8 million, driven by a 47% rise in interest income from portfolio companies and higher fee income [8][23] - Net investment income for the second quarter was $493,000, or $0.19 per share, down from $1.4 million, or $0.55 per share in the same period last year [11][28] - Net asset value at June 30, 2023, was $61.4 million, reflecting a more than 3% increase from the previous quarter, with net asset value per share rising to $23.79 from $23 [12][14] Business Line Data and Key Metrics Changes - The portfolio consisted of 29 companies, down by one due to the sale of DSD and Somerset Gas, with one new investment made during the quarter [24][30] - The fair value of investments totaled $66.8 million, a decrease attributed to the partial sale of ACV shares and valuation adjustments, but up 9% year-to-date from December 31, 2022 [30] Market Data and Key Metrics Changes - The investment in INEA, a new addition, now represents 7% of the total portfolio, while the automotive sector decreased by 7 percentage points due to the sale of DSD [4][5] - The portfolio mix includes approximately 60% in fixed-rate debt investments, 29% in equity investments in private companies, and 11% in publicly traded equities [29] Company Strategy and Development Direction - The company plans to leverage its strong balance sheet and liquidity to invest in new opportunities that will provide higher yields and support future dividends [17][28] - Continued focus on scaling the business through investments in subordinated debt instruments and related equity investments in lower middle market companies [17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the strategy for the second half of the year, anticipating continued investment income growth [17][28] - The company highlighted a strong deal flow and unique market position to support future dividends [28] Other Important Information - A quarterly cash dividend of $0.25 per share was declared for the third quarter, consistent with the previous quarter [15][28] - The company maintained a cash position of approximately $8.4 million at quarter end, with significant liquidity available for future investments [13][14] Q&A Session Summary Question: What are the expectations for future dividends? - Management indicated that the strong deal flow and market position will support future dividends [28] Question: How does the company plan to utilize its liquidity? - The company plans to leverage its cash and credit facility to invest in new opportunities for higher yields [17][28] Question: Can you provide insights on the recent changes in the portfolio? - The portfolio saw a decrease in the automotive sector and an increase in distribution due to the new investment in INEA [4][5]

SECOND QUARTER 2023 FINANCIAL RESULTS August 4, 2023 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2023 Rand Capital Corporation Nasdaq: RAND FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the expectations of Rand ...