Rand Capital Corporation (NASDAQ:RAND) Q4 2022 Earnings Conference Call March 10, 2023 11:00 AM ET Company Participants Craig Mychajluk - Investor Relations Dan Penberthy - President and CEO Margaret Brechtel - Executive Vice President and CFO Conference Call Participants Operator Greetings. Welcome to Rand Capital Corporation Fourth Quarter 2022 Financial Results. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note, this conference is being recorded. I will now tur ...

Management Fees and Incentives - The Base Management Fee is calculated at an annual rate of 1.50% of total assets, excluding cash or cash equivalents, and includes assets purchased with borrowed funds[44]. - The Incentive Fees consist of two parts: the Income Based Fee and the Capital Gains Fee[45]. - The Income Based Fee is calculated quarterly based on Pre-Incentive Fee Net Investment Income, with a hurdle rate of 1.75% per quarter (7% annualized)[49]. - If Pre-Incentive Fee Net Investment Income exceeds 2.1875% (8.75% annualized), the Adviser receives 20% of the amount exceeding this threshold[50]. - The Capital Gains Fee is calculated at the end of each calendar year, equal to 20% of the positive difference between cumulative realized capital gains and cumulative realized capital losses[56]. Investment Management and Operations - The Adviser is responsible for managing the investment portfolio and making decisions regarding asset acquisition and disposition[38]. - The Investment Committee, which includes five members, evaluates and approves investment opportunities[39]. - The Adviser may enter into sub-advisory agreements with other investment advisors to assist in investment decisions[37]. - The company does not have any employees; operations are managed by RCM, the investment adviser[35]. - The company reimburses RCM for overhead and other expenses incurred in performing its obligations under the Administration Agreement[36]. Financial Performance and Position - As of December 31, 2022, total investments at fair value amounted to $61,504,259, a decrease from $64,068,462 in 2021[316]. - Cash increased to $1,368,996 in 2022 from $833,875 in 2021, indicating improved liquidity[316]. - Total liabilities rose to $5,759,872 in 2022, compared to $4,899,438 in 2021, primarily due to an increase in the line of credit[316]. - Stockholders' equity decreased to $57,721,320 in 2022 from $60,745,416 in 2021, reflecting a decline in total distributable earnings[316]. - The company must distribute at least 90% of its investment company taxable income to maintain its RIC status, which is crucial for tax benefits[85]. Investment Income and Expenses - Total investment income for 2022 reached $5,765,181, a 41.5% increase from $4,076,303 in 2021[319]. - Net investment income for 2022 was $4,430,410, compared to a loss of $2,604,908 in 2021, marking a significant turnaround[321]. - Total expenses for 2022 were $1,119,229, a substantial decrease from $6,670,315 in 2021, primarily due to lower capital gains incentive fees[319]. - The company declared dividends totaling $2,142,247 in 2022, compared to $1,136,071 in 2021[321]. Investment Strategy and Portfolio Composition - The company has invested in various sectors, including software, manufacturing, and professional services, indicating a diversified investment strategy[326][328]. - The overall investment strategy emphasizes high-yield opportunities, with several investments offering interest rates of 12% or higher[326][328]. - The largest industry classification by percentage of total investments was Professional Services at 31.4%, followed by Manufacturing at 22.6% and Consumer Products at 16.2%[342]. Credit Facility and Financial Covenants - The Corporation entered into a senior secured revolving credit facility of up to $25 million on June 27, 2022, with a maturity date of June 27, 2027[440]. - The interest rate on borrowings under the Credit Facility is set at 3.50 percentage points above the greater of the applicable daily simple secured overnight financing rate (SOFR) or 0.25%[441]. - The Corporation must maintain a Tangible Net Worth of not less than $50 million as per the financial covenants of the Credit Agreement[442]. - The Asset Coverage Ratio must be maintained at not less than 3:1, measured quarterly[442]. - The Interest Coverage Ratio is required to be at least 2.5:1, also measured quarterly on a trailing twelve-month basis[442]. Taxation and Regulatory Compliance - At December 31, 2022, the company was in compliance with the 1940 Act, which restricts non-qualifying investments to no more than 30% of total asset value[83]. - The company is subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless timely distributions are made[86]. - The Corporation's taxable income for 2022 was $3,684,742, a significant increase from $746,766 in 2021[426]. Shareholder Returns and Dividends - The Corporation's Board of Directors declared cash dividends totaling $0.15 per share for the first three quarters and $0.20 and $0.18 per share for the fourth quarter of 2022[454]. - The company declared a cash dividend of $0.83 per share in 2022, compared to $0.44 per share in 2021[362]. - Rand Capital Corporation declared cash dividends of $0.10 per share for each quarter in 2021, totaling $0.40, and increased to $0.15 per share for the first three quarters in 2022, with a final dividend of $0.20 in Q4 2022, totaling $0.65 for the year[372][372].

Rand Capital Corporation (NASDAQ:RAND) Q3 2022 Earnings Conference Call November 7, 2022 1:30 PM ET Company Participants Craig Mychajluk - Investor Relations Dan Penberthy - President and Chief Executive Officer Margaret Brechtel - Executive Vice President and Chief Financial Officer Operator Greetings and welcome to the Rand Capital Corporation Third Quarter Fiscal Year 2022 Financial Results. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the conference ove ...

THIRD QUARTER 2022 FINANCIAL RESULTS November 7, 2022 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2022 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 Ran ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ 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 (State or Oth ...

Financial Data and Key Metrics Changes - Total investment income for Q2 2022 was $1.4 million, reflecting a 67% increase compared to the previous year, driven by higher interest and dividend income [17][5] - Net investment income was $1.4 million or $0.55 per share, compared to a loss in the prior year quarter, with adjusted net investment income at $0.29 per share, up almost 3 times from $0.10 per share in the previous year [19][20] - Net assets at June 30, 2022, were $57.7 million, slightly down from the first quarter, with net asset value per share at $22.34 compared to $23.23 at March 31, 2022 [21] Business Line Data and Key Metrics Changes - The portfolio composition shifted to 55% fixed-rate debt investments, up from 48% in the previous quarter, with 35% in equity investments and 10% in dividend-paying publicly traded BDCs [7][8] - The fair value of investments totaled $59 million, a 6% decrease primarily due to changes in ACV Auction's market value and stock sales [9] Market Data and Key Metrics Changes - The consumer products sector increased to a 70% mix in the portfolio, while BDC stocks contracted to 7% and software represented 18% [13] Company Strategy and Development Direction - The company focuses on portfolio expansion into income-producing assets to drive investment income and future dividend growth, supported by a newly secured $25 million credit facility [6][5] - The strategy includes exiting smaller equity positions and monetizing equity investments to fund follow-on debt investments [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to grow investment income and distribute earnings to shareholders, with plans to continue executing this strategy moving forward [25] Other Important Information - The company paid a cash dividend of $0.15 per share during Q2 and declared the same for Q3 2022 [5][23] - Cash and cash equivalents at quarter end were $1.2 million, up 43% since the end of 2021 [22] Q&A Session Summary - No specific questions or answers were recorded in the provided content [27]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ 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 (State or Other Ju ...

Rand Capital Corp. (NASDAQ:RAND) Q1 2022 Results Conference Call May 9, 2022 1:30 PM ET Company Participants Craig Mychajluk - IR Dan Penberthy - President, CEO Margaret Brechtel - EVP, CFO Operator Greetings. Welcome to the Rand Capital Corporation First Quarter 2022 Financial Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Craig Mychajluk, Investor Relations. Thank you. You may begin. Craig Mychajluk Thank you, and go ...

FIRST QUARTER 2022 FINANCIAL RESULTS May 9, 2022 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2022 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 Cap ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ 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 Indicate by check mark whether the registrant has submitted electronically every Interactive ...