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, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Rand Capital Corporation (Exact Name of Registrant as specified in its Charter) New York 16-0961359 (State or Other Jurisdiction of Incorporation or Org ...

FIRST QUARTER 2021 | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|------------|----------------------| | | | | | F INANCIAL | R ESULTS | | | | | | | May 10, 2021 | | | | | | | | | | | | | | Allen F. "Pete" Grum | | | | | | | President & CEO | Daniel P. Penberthy Executive Vice President & CFO © 2021 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, a ...

Rand Capital (NASDAQ:RAND) Q1 2021 Earnings Conference Call May 10, 2021 1:30 PM ET Company Participants Deborah Pawlowski – Investor Relations Pete Grum – Chief Executive Officer Dan Penberthy – Executive Vice President and Chief Financial Officer Conference Call Participants Operator Welcome to the Rand Capital Corporation First Quarter 2021 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions ...

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, 2021 ☐ 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 J ...

Rand Capital (NASDAQ:RAND) Q4 2020 Earnings Conference Call March 8, 2021 1:30 PM ET Company Participants Deborah Pawlowski - Investor Relations Pete Grum - Chief Executive Officer Dan Penberthy - Executive Vice President and Chief Financial Officer Operator Greetings, and welcome to Rand Capital Corporation Fourth Quarter 2020 Financial Results. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, t ...

FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS March 8, 2020 Allen F. "Pete" Grum President & CEO Daniel P. Penberthy Executive Vice President & CFO © 2021 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 ...

Fees and Compensation - The Base Management Fee is calculated at an annual rate of 1.50% of total assets, excluding cash or cash equivalents[44]. - The Incentive Fees consist of an Income Based Fee and a Capital Gains Fee, with the Income Based Fee calculated quarterly based on Pre-Incentive Fee Net Investment Income[45][46]. - The hurdle rate for the Income Based Fee is set at 1.75% per quarter (7% annualized), with no fee payable if this rate is not exceeded[49]. - The Capital Gains Fee is calculated at 20% of the positive difference between cumulative realized capital gains and cumulative realized capital losses at the end of each calendar year[56]. - The Income Based Fee is subject to a "catch-up" provision, allowing for additional fees if certain thresholds are exceeded[61]. - The Adviser has a "catch-up" provision allowing for a 20.00% Income Based Fee on Pre-Incentive Fee Net Investment Income exceeding 1.75% in any calendar quarter[63]. - The Adviser will be reimbursed for costs related to investment advisory services, including management fees and operational expenses[75]. Investment Management and Operations - The Investment Committee, responsible for investment decisions, increased from five to six members as of December 31, 2020, following a change in control[42]. - RCM employed a total of four employees as of December 31, 2020, managing the operations of the company[37]. - The Adviser is authorized to enter into sub-advisory agreements to assist in investment recommendations and structuring[40]. - The company reimburses RCM for overhead and other expenses incurred in managing its operations[37]. - The Administration Agreement, effective December 31, 2020, will remain in effect for two years and can be terminated with 60 days' notice[76]. Regulatory Compliance - The company is regulated as a Business Development Company (BDC) under the 1940 Act, which imposes significant operational limitations[78]. - At December 31, 2020, the company was in compliance with the 70% qualifying assets rule under the 1940 Act[82]. - The Adviser is responsible for maintaining financial records and preparing reports required by the SEC[74]. - Rand SBIC has complied with SBA requirements since its inception, maintaining at least 20% to 25% of total dollars invested in "smaller enterprises" as defined by the SBA[86]. - As of December 31, 2020, Rand SBIC had $11,000,000 in outstanding SBA debenture instruments, with a maximum cash investment of $4.8 million in any one portfolio company[95][91]. - To qualify as a RIC, Rand SBIC must meet source-of-income, asset-diversification, and minimum distribution requirements, which are critical for tax treatment[97]. - As of December 31, 2020, neither Rand nor Rand SBIC had unrealized net built-in gains, which could affect their tax status if realized within five years of qualifying as RICs[104]. - The Corporation is subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless specific distribution requirements are met[99]. Financial Performance - Total assets decreased from $64,791,449 in 2019 to $60,966,942 in 2020, a decline of approximately 6.4%[299]. - Total investment income increased to $3,102,919 in 2020, up 14% from $2,724,696 in 2019[302]. - Net investment income improved to $1,756,128 in 2020, compared to a loss of $85,697 in 2019[302]. - The company reported a net realized loss on investments of $5,983,279 in 2020, compared to a gain of $861,838 in 2019[302]. - Cash and cash equivalents decreased from $25,815,720 in 2019 to $20,365,415 in 2020, a reduction of approximately 21%[299]. - Total liabilities increased from $11,162,933 in 2019 to $14,862,112 in 2020, an increase of about 33%[299]. - The company declared dividends totaling $8,190,723 in 2020, marking a significant distribution to shareholders[304]. - The weighted average shares outstanding rose to 2,268,356 in 2020 from 836,893 in 2019, indicating a substantial increase in share issuance[302]. - The total stockholders' equity decreased from $53,628,516 in 2019 to $46,104,830 in 2020, a decline of approximately 14%[299]. Investment Portfolio - The investment portfolio consists of debt and equity securities in private companies, which are subject to valuation risk due to the lack of public market[295]. - As of December 31, 2020, there were no off-balance sheet arrangements or hedging investments reported[296]. - The maximum term for financing by SBICs is limited, and control over a small business can be exercised for up to seven years from the initial acquisition[89]. - The SBA prohibits SBICs from investing in certain businesses, including those with the majority of employees outside the U.S. or in passive/non-operating businesses[88]. - The total investment in Caitec Acquisition, Inc. amounts to $3,810,702, which is 8.3% of net assets[309]. - The investment in HDI Acquisition LLC is valued at $1,275,140, accounting for 2.8% of net assets[311]. - The investment in Rheonix, Inc. totals $702,732, representing 1.5% of net assets[311]. - The total fair value of investments as of December 31, 2019, was $17,125,591, including both control and affiliate investments[343]. Unrealized Gains and Losses - The net change in unrealized depreciation on investments was $4,970,917 in 2020, compared to a depreciation of $3,065,811 in 2019[302]. - The net unrealized depreciation of total investment securities is approximately $672,000, with $10.6 million of unrealized appreciation and ($11.3) million of unrealized depreciation[319]. - Total Affiliate Investments reached $17,026,091, with gross additions of $5,916,662 and gross reductions of $10,791,318, resulting in a net income of $1,172,010[343]. - The total realized losses for the year included a net loss of $5,983,279, with significant losses from Genicon, Inc. and BeetNpath, LLC[408]. - Unrealized gains for Level 3 investments totaled $6,508,501, primarily driven by gains from Genicon and Centivo Corporation[408]. Tax and Distributions - The Corporation intends to elect to be treated as a RIC for the 2020 tax year, which will exempt it from corporate-level federal income taxes on net ordinary income or capital gains distributed to stockholders[417]. - The tax character of distributions paid during the year ended December 31, 2020, included $24,806,704 in ordinary income and $2,412,046 in long-term capital gains, totaling $27,218,750[421]. - The Corporation's taxable income for 2020 was estimated at $3,512,380, which includes a net increase in net assets resulting from operations of $743,766[421]. - Income taxes refunded during the years ended December 31, 2020, 2019, and 2018 amounted to $121,277, $728,523, and $26,448, respectively[380].

THIRD QUARTER 2020 | --- | --- | --- | --- | |-------|-------|-------|--------------------------------------| | | | | | | | | | FINANCIAL RESULTS | | | | | November 6, 2020 | | | | | | | | | | Allen F. "Pete" Grum President & CEO | Daniel P. Penberthy Executive Vice President & CFO © 2020 Rand Capital Corporation Nasdaq: RAND SAFE HARBOR STATEMENT 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 Securi ...

Rand Capital (NASDAQ:RAND) Q3 2020 Earnings Conference Call November 6, 2020 10:30 AM ET Company Participants Deborah Pawlowski – Investor Relations Pete Grum – Chief Executive Officer Dan Penberthy – Executive Vice President and Chief Financial Officer Conference Call Participants Sam Rebotsky – SER Asset Management Operator Greetings, and welcome to the Rand Capital Corporation Third Quarter 2020 Financial Results Conference Call. [Operator Instructions] Please note that this conference is being recorded. ...

Financial Data and Key Metrics Changes - Total investment income increased by almost 16% year-over-year, reaching $675,000 in Q2 2020, primarily due to an 81% increase in interest income [7][22] - Net income rose to $199,000 or $0.08 per share, compared to a loss of $0.20 per share in the same quarter last year [7] - Net asset value (NAV) decreased to $49.7 million, down more than $4 million, with NAV per share at $19.21, compared to $33.2 per share at the end of March 2020 [9][26] Business Line Data and Key Metrics Changes - The company invested approximately $1.5 million in SciAps and $750,000 in Tilson Technology during the quarter, with interest from portfolio companies increasing to 81% from 2019 [13][22] - The investment strategy focused on 58% equity and 42% debt, aiming to generate current income complemented by capital appreciation [12] Market Data and Key Metrics Changes - The company maintained a high level of cash at $22 million, representing 44% of net assets, with an additional $3 million available from the SBA loan program [11][27] - The portfolio value of public BDC securities increased by approximately $269,000 during the quarter [17] Company Strategy and Development Direction - The company continues to focus on yield investments, primarily in debt and loan instruments, while also evaluating equity investments for dividend income [12] - The management emphasized the importance of portfolio diversity to reduce market risk during challenging economic times [14] Management Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by the COVID-19 pandemic but expressed confidence in the company's transformation strategy and financial performance [6][7] - The management is actively monitoring portfolio companies' liquidity and operational status, noting their resilience during the pandemic [16] Other Important Information - A special dividend of $23.7 million was distributed in May, impacting the net asset value [8] - The company executed a 1 for 9 reverse stock split and repurchased 1,300 shares under its share repurchase authorization [10] Q&A Session Summary Question: Dividend distribution based on earnings - Management confirmed that a minimum of 90% of net investment income will be distributed as dividends, with further guidance expected in Q3 [31] Question: Plans for raising additional funds - Management stated that there are currently no plans to raise additional funds, emphasizing the existing cash reserves of $22 million [37] Question: Investment opportunities with current cash reserves - Management indicated ongoing efforts to invest the cash, focusing on increasing investment income through debt instruments [38] Question: Impact of Eastman Kodak developments - Management clarified that they are not aware of any direct benefits from Eastman Kodak's recent developments [46]