SAN JOSE, Calif., Nov. 14, 2025 (GLOBE NEWSWIRE) -- Firsthand Technology Value Fund, Inc. (OTCQB: SVVC) (the “Fund”), a publicly traded venture capital fund that invests in technology and cleantech companies, announced today its financial results for the quarter ended September 30, 2025. As of September 30, 2025, the Fund’s net assets were $296,547, or $0.04 per share, compared with net assets of approximately $0.7 million, or $0.11 per share as of June 30, 2025. As of September 30, 2025, the Fund’s portfol ...

Investment Income - Investment income for the three months ended September 30, 2025, was $2,314, a significant decrease from $35,792 for the same period in 2024, primarily due to the liquidation of Hera Systems convertible notes in 2024 [141][142]. - For the nine months ended September 30, 2025, investment income rose to $179,140 from $97,793 in the same period of 2024, attributed to increased accrued interest on current notes [153][154]. Operating Expenses - Operating expenses increased to approximately $432,943 for the three months ended September 30, 2025, compared to $391,753 for the same period in 2024, mainly driven by higher professional fees [143][144]. - Operating expenses for the nine months ended September 30, 2025, totaled approximately $786,161, a decrease from $(2,182,907) in the same period of 2024, primarily due to a management fee waiver in 2024 [155][156]. Net Investment Loss - The net investment loss before taxes for the three months ended September 30, 2025, was $(430,629), compared to $(355,961) for the same period in 2024, reflecting increased professional fees and the prior year's management fee waiver [145][146]. - The net investment loss before taxes for the nine months ended September 30, 2025, was $(607,021), contrasting with a net investment income of $2,280,700 for the same period in 2024, largely due to the management fee waiver [157]. Net Realized and Unrealized Losses - For the nine months ended September 30, 2025, net realized losses amounted to $(24,169,015), while the net change in unrealized depreciation on investments was $24,011,904 [159][160]. - The company recognized net realized losses of approximately $(11,686,668) from the sale of investments during the nine months ended September 30, 2024 [161]. Fair Value and Portfolio Composition - As of September 30, 2025, the fair value of the investment portfolio was approximately $0.3 million, down from $1.0 million at December 31, 2024 [138]. - The portfolio composition as of September 30, 2025, included 57.8% in Advanced Materials and 19.9% in Exchange-Traded/Money Market Funds, compared to 24.5% and 70.3% respectively at December 31, 2024 [139]. Changes in Net Assets - The net decrease in net assets resulting from operations for the three months ended September 30, 2025, was $450,712, with a basic and fully diluted net change in net assets per share of $(0.07) [151][152]. - For the nine months ended September 30, 2024, the net increase in net assets resulting from operations was $283,776, with a basic and fully diluted net change in net assets per share of $0.04 [163]. - For the nine months ended September 30, 2025, the net decrease in net assets resulting from operations totaled $764,132, resulting in a basic and fully diluted net change in net assets per share of $(0.11) [162]. Distributions and Obligations - The board of directors will determine the timing and amount of distributions, with no minimum level of distributions required [165]. - The company is required to distribute substantially all net realized gains to stockholders on an annual basis, holding proceeds of liquidated investments in cash pending distribution [186]. - The company does not have any contractual obligations or off-balance sheet arrangements that require disclosure [166][167]. Valuation and Market Conditions - The valuation of portfolio investments is based on market prices or fair value determined in good faith by the board of directors, with significant reliance on independent valuation firms for private securities [169][179]. - Inflation has not significantly affected the company's results of operations, although portfolio companies may experience its impacts [175]. Investment Risks - Investments in small privately-held companies are considered speculative and may be subject to legal or contractual restrictions on resale, affecting liquidity and marketability [183]. - As of September 30, 2025, a portion of the company's assets was invested in cash and/or cash equivalents, which are expected to earn low yields [184].

Core Viewpoint - Firsthand Technology Value Fund, Inc. reported its financial results for the quarter ended June 30, 2025, highlighting a decrease in net assets and investment performance challenges [1][5]. Financial Summary - As of June 30, 2025, the Fund's net assets were approximately $0.7 million, or $0.11 per share, down from approximately $0.8 million, or $0.12 per share as of March 31, 2025 [2]. - The Fund's portfolio included public and private securities valued at approximately $0.7 million, or $0.10 per share, with about $0.07 per share in cash and cash equivalents [2]. - Total assets were reported at $1.17 million, with total liabilities of $0.42 million, resulting in net assets of $0.75 million [3]. Investment Performance - For the quarter, the Fund reported total investment income of approximately $171 thousand, but after fees and expenses, it faced a net investment loss of approximately $63 thousand [5]. - The Fund experienced net realized and unrealized losses on investments of approximately $27 thousand for the quarter [5]. Portfolio Management - The Valuation Committee adjusted the fair values of private companies in the portfolio, considering various factors such as performance, recent transactions, and market multiples [4]. - The Fund continued to manage its portfolio prudently, collaborating with portfolio companies to enhance performance and identify potential exit opportunities [6]. Company Overview - Firsthand Technology Value Fund, Inc. is a publicly traded venture capital fund focused on technology and cleantech investments, aiming for long-term capital growth [7][8].

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited financial statements detail assets, operations, cash flows, and investments for the periods ended June 30, 2025, and December 31, 2024 [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The company's total assets and net assets significantly decreased from December 2024 to June 2025 Consolidated Statements of Assets and Liabilities | ASSETS/LIABILITIES | JUNE 30, 2025 (UNAUDITED) | DECEMBER 31, 2024 | | :--- | :--- | :--- | | Total Assets | $1,167,234 | $1,795,613 | | Total Liabilities | $419,975 | $734,934 | | NET ASSETS | $747,259 | $1,060,679 | | Net asset value per share | $0.11 | $0.15 | - Total Assets decreased by approximately **35%** from $1,795,613 as of December 31, 2024, to $1,167,234 as of June 30, 2025[9](index=9&type=chunk) - Net Assets decreased by approximately **29.6%** from $1,060,679 to $747,259 over the same period[9](index=9&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company experienced improved net investment income in Q2 2025, though net assets declined due to investment losses Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | TOTAL INVESTMENT INCOME | $170,861 | $29,956 | $176,826 | $62,001 | | TOTAL NET EXPENSES | $234,035 | $208,767 | $353,218 | $(2,574,660) | | NET INVESTMENT INCOME/(LOSS) | $(63,174) | $(178,811) | $(176,392) | $2,636,661 | | Net Realized and Unrealized Gains (Losses) on Investments | $(26,788) | $1,028,811 | $(137,028) | $(2,879,112) | | Net Increase (Decrease) In Net Assets Resulting From Operations | $(89,962) | $850,000 | $(313,420) | $(242,451) | | Net Increase (Decrease) In Net Assets Per Share Resulting From Operations | $(0.01) | $0.12 | $(0.04) | $(0.04) | - Net investment income/(loss) **improved from $(178,811) in Q2 2024 to $(63,174) in Q2 2025**, primarily due to increased investment income[11](index=11&type=chunk) - However, **net assets decreased significantly in Q2 2025** due to net realized and unrealized losses on investments[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated positive cash flow in the first six months of 2025, reversing the cash use seen in the prior year period Consolidated Statements of Cash Flows (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $135 | $63 | $159 | $(58) | | Net cash provided by financing activities | — | — | — | — | | Net increase (decrease) in cash | $135 | $63 | $159 | $(58) | | Cash and foreign currency - end of period | $2,671 | $2,707 | $2,671 | $2,707 | - Operating activities generated **positive cash flow of $159** for the six months ended June 30, 2025, a notable improvement from the $(58) used in the six months ended June 30, 2024[14](index=14&type=chunk) [Consolidated Statements of Changes in Net Assets](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets declined in the first half of 2025, driven by substantial realized losses from security transactions Consolidated Statements of Changes in Net Assets (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net investment (loss) income | $(63,174) | $(178,811) | $(176,392) | $2,636,661 | | Net realized (loss) from security transactions | $(24,169,015) | — | $(24,169,015) | — | | Net change in unrealized appreciation (depreciation) on investments | $24,142,227 | $1,028,811 | $24,031,987 | $(2,879,112) | | Net increase (decrease) in net assets from operations | $(89,962) | $850,000 | $(313,420) | $(242,451) | | NET ASSETS: End of period | $747,259 | $1,017,920 | $747,259 | $1,017,920 | - Net assets **decreased by $313,420** for the six months ended June 30, 2025, primarily due to significant net realized losses from security transactions[15](index=15&type=chunk) [Selected Per Share Data and Ratios](index=8&type=section&id=Selected%20Per%20Share%20Data%20and%20Ratios) Net asset value per share continued its decline in the first half of 2025, reflecting a negative total return based on NAV Selected Per Share Data and Ratios | Metric | Six Months Ended June 30, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net asset value at beginning of period | $0.15 | $0.18 | $4.44 | $13.75 | $14.82 | $17.70 | | Total from investment operations | $(0.04) | $(0.03) | $(4.26) | $(9.31) | $(1.07) | $(3.34) | | Net asset value at end of period | $0.11 | $0.15 | $0.18 | $4.44 | $13.75 | $14.82 | | Market value at end of period | $0.06 | $0.06 | $0.30 | $0.95 | $4.01 | $4.47 | | Total Return Based on Net Asset Value | (26.67)% | (16.67)% | (95.95)% | (67.71)% | (7.22)% | (16.27)% | | Total Return Based on Market Value | 0.0% | (80.00)% | (68.42)% | (76.31)% | (10.29)% | (30.48)% | | Net assets at end of period (millions) | $0.7 | $1.1 | $1.3 | $30.6 | $94.8 | $102.1 | | Ratio of total expenses to average net assets: Total expenses | 81.86% | (181.20)% | (7.21)% | 4.11% | 3.12% | 11.12% | | Ratio of net investment income (loss) to average net assets: Net investment income (loss) | (40.88)% | 206.76% | 8.13% | (20.96)% | 2.94% | 0.64% | - Net asset value per share **decreased from $0.15 to $0.11** as of June 30, 2025, reflecting a total return of **(26.67)% based on NAV**[16](index=16&type=chunk) [Consolidated Schedule of Investments](index=10&type=section&id=Consolidated%20Schedule%20of%20Investments) The portfolio's fair value decreased, with a significant shift in allocation from Intellectual Property to Advanced Materials Portfolio Composition by Industry Sector (Fair Value) | Industry Sector | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Exchange-Traded/Money Market Funds | 67.6% | 70.3% | | Advanced Materials | 25.1% | 0.0% | | Equipment Leasing | 3.5% | 2.8% | | Other Assets/(Liabilities) | 3.2% | 0.0% | | Medical Devices | 0.6% | 2.4% | | Semiconductor Equipment | 0.0% | 0.0% | | Automotive | 0.0% | 0.0% | | Intellectual Property | 0.0% | 24.5% | | Total Investments (Cost) | $92,313,380 | $116,682,498 | | Total Market Value | $723,147 | $1,060,474 | - The portfolio's fair value **decreased from approximately $1.0 million to $0.7 million** as of June 30, 2025[133](index=133&type=chunk)[135](index=135&type=chunk) - The allocation to **Advanced Materials significantly increased to 25.1%**, while **Intellectual Property decreased to 0.0%**[133](index=133&type=chunk)[135](index=135&type=chunk) [Notes to Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of accounting policies, business risks, fair value measurements, and other key financial matters [NOTE 1. THE COMPANY](index=18&type=section&id=NOTE%201.%20THE%20COMPANY) The company operates as an externally managed, non-diversified Business Development Company focused on technology investments - Firsthand Technology Value Fund, Inc is an externally managed, non-diversified, closed-end management investment company treated as a **Business Development Company (BDC)**[38](index=38&type=chunk) - The Company invests at least **80% of its assets in technology companies** and at least **70% in privately held or small-cap public companies**[38](index=38&type=chunk) - The Company's shares are quoted on the **OTCQB market under the symbol 'SVVC'** after voluntarily delisting from NASDAQ[38](index=38&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=19&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The company's accounting policies are centered on fair value measurement for investments, involving significant estimates and judgments - Investments are valued at **'fair value' as determined by the Board of Directors**, involving significant estimates and judgments[47](index=47&type=chunk)[62](index=62&type=chunk) - The Company held **$218,026 in restricted securities** as of June 30, 2025, down from $315,250 as of December 31, 2024[49](index=49&type=chunk) - The Company accounts for realized gains/losses on a **specific identification basis**[53](index=53&type=chunk) [NOTE 3. BUSINESS RISKS AND UNCERTAINTIES](index=21&type=section&id=NOTE%203.%20BUSINESS%20RISKS%20AND%20UNCERTAINTIES) The company faces significant risks from its concentration in illiquid, privately-held securities and its non-diversified portfolio - The Company invests a substantial portion of its assets in **illiquid, privately-held companies**, which are inherently speculative[60](index=60&type=chunk) - The **portfolio is not diversified**, making it vulnerable to events affecting a single sector or company[61](index=61&type=chunk) - Valuation of privately-held securities involves **significant estimates and judgments** and may differ materially from ultimately realized values[62](index=62&type=chunk) [NOTE 4. INVESTMENT MANAGEMENT FEE](index=22&type=section&id=NOTE%204.%20INVESTMENT%20MANAGEMENT%20FEE) The investment manager receives a base management fee and an incentive fee, but has recently waived significant portions of these fees - The Company pays FCM a **base management fee of 2.00%** of gross assets and an **incentive fee of 20%** of cumulative realized capital gains[66](index=66&type=chunk)[67](index=67&type=chunk) - FCM **waived future accruals of the base management fee** from October 1, 2023, through December 31, 2024, and waived a total of **$5.5 million** of accrued but unpaid fees[68](index=68&type=chunk)[69](index=69&type=chunk) [NOTE 5. DEBT](index=23&type=section&id=NOTE%205.%20DEBT) The company currently has no plans to use leverage and has no significant outstanding debt obligations - The Company currently has **no plan to use leverage** and does not have any significant outstanding debt obligations[71](index=71&type=chunk) [NOTE 6. FAIR VALUE](index=23&type=section&id=NOTE%206.%20FAIR%20VALUE) Fair value for illiquid securities is determined by the Board, with a significant portion of assets classified as Level 3 inputs - **Fair value is determined by the Board of Directors** for securities without readily available market quotations[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - The primary valuation approaches used are the **market approach, income approach, and asset-based approach**[78](index=78&type=chunk)[83](index=83&type=chunk) Fair Value Hierarchy of Net Assets (June 30, 2025) | ASSETS | LEVEL 1 QUOTED PRICES | LEVEL 2 OTHER SIGNIFICANT OBSERVABLE INPUTS | LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS | | :--- | :--- | :--- | :--- | | Common Stocks | $— | $— | $187,399 | | Preferred Stocks | $— | $— | $25,815 | | Convertible Notes | $— | $— | $4,812 | | Mutual Funds | $505,121 | $— | $— | | Total | $505,121 | $— | $218,026 | Reconciliation of Level 3 Assets (12/31/2024 to 06/30/2025) | INVESTMENTS AT FAIR VALUE USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | BALANCE AS OF 12/31/24 | NET PURCHASES/ CONVERSIONS | NET SALES/ CONVERSIONS | NET REALIZED GAINS/ (LOSSES) | NET UNREALIZED APPRECIATION (DEPRECIATION) (1) | TRANSFERS IN (OUT) OF LEVEL 3 | BALANCE AS OF 06/30/25 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Common Stocks | $260,497 | $— | $— | $— | $(73,098) | $— | $187,399 | | Preferred Stocks | $29,466 | $— | $— | $— | $(3,651) | $— | $25,815 | | Convertible and Non Convertible Notes | $25,287 | $— | $— | $(24,129,015) | $24,108,540 | $— | $4,812 | | Total | $315,250 | $— | $— | $(24,129,015) | $24,031,791 | $— | $218,026 | [NOTE 7. FEDERAL INCOME TAXES](index=28&type=section&id=NOTE%207.%20FEDERAL%20INCOME%20TAXES) The company is taxed as a corporation and maintains a full valuation allowance on its net deferred tax assets - The Company has been **taxed as a corporation since 2018**, no longer qualifying as a Regulated Investment Company (RIC)[95](index=95&type=chunk) - As of June 30, 2025, the Company has a **net unrealized depreciation of $91,590,233** on its portfolio investments for tax purposes[98](index=98&type=chunk) - The Company has a **full valuation allowance on its net deferred tax assets** due to uncertainty of future taxable income[102](index=102&type=chunk) Net Operating Loss and Capital Loss Carryforwards (as of December 31, 2024) | Type of Loss Carryforward | Amount | | :--- | :--- | | Net operating loss | $11,593,301 | | Capital loss (expiring 12/31/25) | $7,516,642 | | Capital loss (expiring 12/31/27) | $3,129,665 | | Capital loss (expiring 12/31/28) | $7,864,982 | | Capital loss (expiring 12/31/29) | $11,686,668 | | Total Capital Loss | $30,197,957 | [NOTE 8. INVESTMENT TRANSACTIONS](index=30&type=section&id=NOTE%208.%20INVESTMENT%20TRANSACTIONS) There were no investment security purchases or sales during the second quarter of 2025 - For the quarter ended June 30, 2025, there were **no purchases or sales of investment securities**[110](index=110&type=chunk) [NOTE 9. SHARE BUYBACKS](index=30&type=section&id=NOTE%209.%20SHARE%20BUYBACKS) The company has historically engaged in share repurchases through various plans and tender offers to enhance shareholder value - The Fund completed a discretionary share repurchase plan in September 2016, repurchasing **272,008 shares for approximately $2 million**[111](index=111&type=chunk) - Another share repurchase plan was approved in November 2017, with **128,551 shares repurchased for approximately $1.1 million** as of December 31, 2017[112](index=112&type=chunk) - A modified Dutch auction tender offer in December 2019 resulted in the purchase of **285,714 shares at $7.00 per share**[114](index=114&type=chunk)[115](index=115&type=chunk) [NOTE 10. INVESTMENTS IN AFFILIATES AND CONTROLLED INVESTMENTS](index=32&type=section&id=NOTE%2010.%20INVESTMENTS%20IN%20AFFILIATES%20AND%20CONTROLLED%20INVESTMENTS) The company holds significant stakes in several portfolio companies, with its CEO serving on multiple boards, creating potential conflicts of interest - The Company identifies investments where it owns **greater than 5% as affiliates** and **greater than 25% as controlled investments**[116](index=116&type=chunk) - **Kevin Landis, the Company's CEO**, serves on the boards of several portfolio companies, which may create conflicts of interest[119](index=119&type=chunk) Summary of Affiliate and Controlled Investments (12/31/2024 to 06/30/2025) | Category | Value at 12/31/24 | Realized Gain (Loss) | Change in Appreciation/ Depreciation | Value at 6/30/25 | | :--- | :--- | :--- | :--- | :--- | | Total Affiliates | $260,497 | $— | $(73,098) | $187,399 | | Total Controlled Investments | $54,753 | $(24,169,015) | $24,104,889 | $30,627 | | Total Affiliates and Controlled Investments | $315,250 | $(24,169,015) | $24,031,791 | $218,026 | [NOTE 11. MARKET DISRUPTION AND GEOPOLITICAL RISKS](index=35&type=section&id=NOTE%2011.%20MARKET%20DISRUPTION%20AND%20GEOPOLITICAL%20RISKS) The company is exposed to various market and geopolitical risks that can adversely impact its portfolio companies and investment values - The Company is exposed to market disruption and geopolitical risks, including **inflation, interest rates, and supply chain disruptions**[120](index=120&type=chunk) - Global events, such as the **Russia-Ukraine conflict and Middle East tensions**, can cause market volatility and significant adverse impacts[120](index=120&type=chunk) [NOTE 12. LITIGATION](index=35&type=section&id=NOTE%2012.%20LITIGATION) The company is currently a defendant in two separate lawsuits alleging securities law violations, fraud, and breaches of fiduciary duty - **Star Equity Fund, LP filed a class action complaint** on February 28, 2025, alleging federal securities law violations and breaches of fiduciary duties[122](index=122&type=chunk) - **VestedCap, LLC amended a complaint** on January 22, 2025, adding the Fund as a co-defendant and asserting claims of wire fraud and RICO Act violations[124](index=124&type=chunk) - The Fund believes these allegations **lack merit and intends to vigorously defend** these actions[122](index=122&type=chunk)[124](index=124&type=chunk) [NOTE 13. SUBSEQUENT EVENTS](index=35&type=section&id=NOTE%2013.%20SUBSEQUENT%20EVENTS) No material subsequent events requiring disclosure or recognition have occurred after the balance sheet date - Management has evaluated subsequent events and determined there are **no events requiring recognition or disclosure**[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operational results, portfolio composition, and performance for the six months ended June 30, 2025 [OVERVIEW](index=37&type=section&id=OVERVIEW) The company operates as a BDC with the objective of long-term capital growth through investments in technology and cleantech companies - The Company is an externally managed, closed-end, non-diversified management investment company operating as a **BDC**[130](index=130&type=chunk) - The investment objective is **long-term capital growth**, primarily through equity investments in technology and cleantech companies[131](index=131&type=chunk) - The Company may invest up to **30% of its portfolio in opportunistic investments**, including publicly traded securities and non-U.S. companies[132](index=132&type=chunk) [PORTFOLIO COMPOSITION](index=37&type=section&id=PORTFOLIO%20COMPOSITION) The investment portfolio's fair value decreased, with a major reallocation from Intellectual Property to Advanced Materials - The fair value of the investment portfolio was **approximately $0.7 million** as of June 30, 2025, a decrease from **approximately $1.0 million** as of December 31, 2024[133](index=133&type=chunk) Portfolio Composition by Industry Sector (Fair Value) | Industry Sector | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Exchange-Traded/Money Market Funds | 67.6% | 70.3% | | Advanced Materials | 25.1% | 0.0% | | Equipment Leasing | 3.5% | 2.8% | | Other Assets/(Liabilities) | 3.2% | 0.0% | | Medical Devices | 0.6% | 2.4% | | Semiconductor Equipment | 0.0% | 0.0% | | Automotive | 0.0% | 0.0% | | Intellectual Property | 0.0% | 24.5% | [RESULTS OF OPERATIONS](index=38&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, comparing results from 2025 against the same periods in 2024 [Comparison of the three months ended June 30, 2025 to the three months ended June 30, 2024.](index=38&type=section&id=Comparison%20of%20the%20three%20months%20ended%20June%2030%2C%202025%20to%20the%20three%20months%20ended%20June%2030%2C%202024.) Investment income rose sharply in Q2 2025, but a significant net loss from operations was driven by realized investment losses Key Financial Results (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Investment Income | $170,861 | $29,956 | +470.3% | | Operating Expenses | $234,035 | $208,767 | +12.1% | | Net Investment Income/(Loss) | $(63,174) | $(178,811) | +64.6% | | Net Realized and Unrealized Gains (Losses) on Investments | $(26,788) | $1,028,811 | -102.6% | | Net Increase (Decrease) In Net Assets Resulting From Operations | $(89,962) | $850,000 | -110.6% | | Net Increase (Decrease) In Net Assets Per Share Resulting From Operations | $(0.01) | $0.12 | -108.3% | - Investment income **significantly increased by 470.3%** due to an interest accrual adjustment on Hera Systems investments[137](index=137&type=chunk)[138](index=138&type=chunk) - Net operating expenses **increased by 12.1%** primarily due to higher professional fees and the absence of a fee waiver in 2025[140](index=140&type=chunk)[141](index=141&type=chunk) - The Company recognized **$24,169,015 in realized losses in Q2 2025**, primarily from the maturing of Wrightspeed notes[145](index=145&type=chunk)[147](index=147&type=chunk) [Comparison for the six months ended June 30, 2025 and June 30, 2024](index=41&type=section&id=Comparison%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) The first half of 2025 saw a net loss from operations, contrasting with a net gain in 2024, largely due to fee waivers in the prior year Key Financial Results (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Investment Income | $176,826 | $62,001 | +185.2% | | Operating Expenses | $353,218 | $(2,574,660) | +113.7% | | Net Investment Income/(Loss) | $(176,392) | $2,636,661 | -106.7% | | Net Realized and Unrealized Gains/(Losses) on Investments | $(137,028) | $(2,879,112) | +95.2% | | Net Increase (Decrease) In Net Assets Resulting From Operations | $(313,420) | $(242,451) | -29.3% | | Net Increase (Decrease) In Net Assets Per Share Resulting From Operations | $(0.04) | $(0.04) | 0.0% | - Investment income **increased by 185.2%** due to an interest accrual adjustment on Hera Systems investments[150](index=150&type=chunk)[151](index=151&type=chunk) - Operating expenses **significantly increased** due to higher professional fees and the absence of a management fee waiver in 2025[152](index=152&type=chunk)[153](index=153&type=chunk) - Net investment income shifted from a **gain of $2,636,661 in 2024 to a loss of $(176,392) in 2025**, largely due to the 2024 management fee waiver[154](index=154&type=chunk) - The Company recognized **$24,169,015 in realized losses** in the first six months of 2025, primarily from the maturity of Wrightspeed notes[156](index=156&type=chunk)[157](index=157&type=chunk) [DISTRIBUTION POLICY](index=44&type=section&id=DISTRIBUTION%20POLICY) Distributions are determined by the Board of Directors, and there is no minimum required payout level - The **Board of Directors determines the timing and amount** of any distributions; the Company is not required to pay any minimum level of distributions[161](index=161&type=chunk) [CONTRACTUAL OBLIGATIONS](index=44&type=section&id=CONTRACTUAL%20OBLIGATIONS) The company has no contractual obligations requiring disclosure under Regulation S-K - The Fund **does not have any contractual obligations** that meet the requirements for disclosure under Item 303 of Regulation S-K[162](index=162&type=chunk) [OFF-BALANCE SHEET ARRANGEMENTS](index=44&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) The company does not have any off-balance sheet arrangements - The Fund **does not have any off-balance sheet arrangements**[163](index=163&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=44&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) Key accounting policies include the valuation of portfolio investments, revenue recognition, and the measurement of realized and unrealized gains - **Valuation of Portfolio Investments**: Non-publicly traded securities are valued at **fair value determined in good faith by the Board of Directors**[165](index=165&type=chunk) - **Revenue Recognition**: Interest or dividend income is **recorded on an accrual basis**[167](index=167&type=chunk) - **Net Realized Gains or Losses**: Realized gains/losses are measured by the **difference between net proceeds and cost basis**[168](index=168&type=chunk) [Recently Issued Accounting Standards](index=45&type=section&id=Recently%20Issued%20Accounting%20Standards) Recently issued accounting standards are not expected to materially impact the company's financial statements - The Company believes that recently issued accounting standards not yet effective **will not have a material impact** on its financial statements[169](index=169&type=chunk) [Inflation](index=45&type=section&id=Inflation) Inflation has not had a significant direct impact on the company's operational results during the reporting periods - **Inflation has not significantly affected** the Company's results of operations in the presented reporting periods[170](index=170&type=chunk) [SUBSEQUENT EVENTS](index=45&type=section&id=SUBSEQUENT%20EVENTS) No material events have occurred subsequent to the balance sheet date that would require disclosure - **No material events** related to the investment portfolio have occurred subsequent to June 30, 2025[171](index=171&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks stem from the valuation of illiquid private investments and its holdings in small, speculative companies [VALUATION RISK](index=45&type=section&id=VALUATION%20RISK) Valuation of illiquid, privately-held securities is inherently uncertain and subject to significant fluctuation - Valuation of illiquid, privately-held securities is **determined in good faith by the Board of Directors** due to the absence of a public market[174](index=174&type=chunk) - Valuations are **inherently uncertain** and can differ materially from values ultimately realized upon disposal[174](index=174&type=chunk)[177](index=177&type=chunk) - Investments in privately held, immature companies are **highly volatile** and susceptible to sudden changes in value[175](index=175&type=chunk)[176](index=176&type=chunk) [PRIVATELY PLACED SMALL COMPANIES RISK](index=46&type=section&id=PRIVATELY%20PLACED%20SMALL%20COMPANIES%20RISK) Investments in small, privately placed companies are speculative and subject to resale restrictions, affecting liquidity - The Company's investments in small, privately placed companies are **speculative and often subject to resale restrictions**, adversely affecting liquidity[178](index=178&type=chunk) - This **risk of loss** may prevent shareholders from achieving price appreciation, dividend distributions, and return of capital[178](index=178&type=chunk) [WE CURRENTLY HOLD A PORTION OF OUR ASSETS IN CASH](index=46&type=section&id=WE%20CURRENTLY%20HOLD%20A%20PORTION%20OF%20OUR%20ASSETS%20IN%20CASH) Holding cash presents a risk of low returns, potentially not covering operating expenses, but provides liquidity for investments - A portion of the Company's assets is held in cash, which is **expected to earn low yields**, potentially leading to losses[179](index=179&type=chunk) - Cash reserves are maintained for **follow-on investment opportunities** and for distributing proceeds from liquidated investments[180](index=180&type=chunk)[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal quarter [(a) Evaluation of Disclosure Controls and Procedures](index=47&type=section&id=(a)%20Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management's evaluation confirmed the effectiveness of disclosure controls and procedures as of June 30, 2025 - As of June 30, 2025, management evaluated the **effectiveness of disclosure controls and procedures**[182](index=182&type=chunk) - The CEO and CFO concluded that disclosure controls and procedures were **effective**, providing reasonable assurance of timely reporting[182](index=182&type=chunk) [(b) Changes in Internal Control Over Financial Reporting](index=47&type=section&id=(b)%20Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes to internal control over financial reporting occurred during the most recent fiscal quarter - There have been **no changes in internal control over financial reporting** during the fiscal quarter ended June 30, 2025, that have materially affected internal controls[182](index=182&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS.](index=48&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) The company faces two significant legal proceedings alleging securities law violations, fraud, and breaches of fiduciary duty - **Star Equity Fund, LP filed a class action** and derivative complaint on February 28, 2025, alleging securities law violations and breaches of fiduciary duties[183](index=183&type=chunk) - **VestedCap, LLC amended its complaint** on January 22, 2025, adding the Fund as a co-defendant and asserting claims including wire fraud and RICO Act violations[185](index=185&type=chunk) - The Fund believes the allegations **lack merit and will vigorously defend** these actions, noting that defense costs could be significant[183](index=183&type=chunk)[185](index=185&type=chunk) [ITEM 1A. RISK FACTORS.](index=48&type=section&id=ITEM%201A.%20RISK%20FACTORS.) There have been no material changes to the risk factors previously disclosed in the company's most recent Form 10-K - There have been **no material changes** from risk factors as previously disclosed in the Company's Form 10-K for the period ended December 31, 2024[186](index=186&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.](index=48&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS.) This section is listed as an item in the report but contains no specific content or disclosures [ITEM 3. DEFAULTS UPON SENIOR SECURITIES.](index=48&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES.) This section is listed as an item in the report but contains no specific content or disclosures [ITEM 4. MINE SAFETY DISCLOSURES.](index=48&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) This section is listed as an item in the report but contains no specific content or disclosures [ITEM 5. OTHER INFORMATION.](index=48&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) The Board of Directors approved the continuation of the Investment Management Agreement with Firsthand Capital Management, Inc [INVESTMENT MANAGEMENT AGREEMENT APPROVAL DISCLOSURE (UNAUDITED)](index=48&type=section&id=INVESTMENT%20MANAGEMENT%20AGREEMENT%20APPROVAL%20DISCLOSURE%20(UNAUDITED)) The Board approved the continuation of the Investment Management Agreement after considering the adviser's services, performance, and fees - The Board of Directors approved the continuation of the Investment Management Agreement with Firsthand Capital Management, Inc for an **additional one-year period**[187](index=187&type=chunk) - The Board considered factors such as the **Adviser's personnel, compliance procedures, comparative fees, and Company performance**[188](index=188&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk) - Company performance showed a **91% NAV decline and 96% stock price fall** for the 12 months ended June 30, 2024, due to setbacks at three portfolio companies[197](index=197&type=chunk) - The Board noted the Adviser's efforts to support the Company by **waiving accrued management fees** and paying for certain Company expenses[198](index=198&type=chunk)[199](index=199&type=chunk) [ITEM 6. EXHIBITS.](index=52&type=section&id=ITEM%206.%20EXHIBITS.) This section lists the CEO and CFO certifications filed as exhibits with the Form 10-Q - Exhibits include **CEO and CFO certifications** pursuant to Rule 13a-14 of the Securities Exchange Act of 1934 and Section 1350 of the Sarbanes-Oxley Act[206](index=206&type=chunk)[208](index=208&type=chunk)

Core Viewpoint - Rosen Law Firm is reminding purchasers of common stock of Firsthand Technology Value Fund, Inc. about the lead plaintiff deadline for a class action lawsuit related to significant shareholder value destruction and misleading statements made by the fund's management [1][5]. Group 1: Class Action Details - The class action pertains to common stock purchases of Firsthand Technology between January 1, 2021, and November 14, 2023, with a lead plaintiff deadline set for May 20, 2025 [1][2]. - Investors who purchased shares during the class period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2][3]. - A class action lawsuit has already been filed, and interested parties can join by contacting Rosen Law Firm [3][6]. Group 2: Allegations Against Firsthand Technology - The lawsuit alleges that the management and service providers of Firsthand Technology destroyed over $200 million in shareholder value [5]. - It is claimed that the defendants inflated the value of the fund's remaining investments using implausible valuation methodologies, which were then integrated into the fund's publicly stated net asset value (NAV) [5]. - As a result of these fraudulent valuations, purchasers of the fund's shares experienced significant inflation in market price, leading to damages [5]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4]. - The firm has been ranked No. 1 for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions of dollars for investors [4]. - In 2019, the firm secured over $438 million for investors, showcasing its capability and success in representing investor rights [4].

Core Viewpoint - A class action lawsuit has been filed against Firsthand Technology Value Fund, Inc. for alleged violations of securities laws, claiming that the company misled investors and caused significant shareholder value destruction [1][4]. Group 1: Lawsuit Details - The lawsuit is based on violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 [1]. - Investors who purchased securities between January 1, 2021, and November 14, 2023, are encouraged to participate in the lawsuit [2]. - The class has not yet been certified, meaning potential participants are not yet represented by an attorney [3]. Group 2: Allegations Against the Company - The complaint alleges that the company made false and misleading statements, leading to the destruction of over $200 million in shareholder value [4]. - The company is accused of using accounting tricks to inflate the Fund's net asset value (NAV) and hide failing investments [4]. - Investors relied on the fraudulent NAV for their investment decisions, resulting in damages when the truth was revealed [4].

Investment Performance - Investment income for the three months ended March 31, 2025, was $5,965, a decrease from $32,045 in the same period of 2024, primarily due to a decline in accrued interest[139]. - Net investment loss before taxes for the three months ended March 31, 2025, was $(113,218), a significant decrease from a net investment income of $2,815,472 in the same period of 2024[142]. - The fair value of the investment portfolio decreased to approximately $0.7 million as of March 31, 2025, down from approximately $1.1 million as of December 31, 2024[135]. - Net unrealized depreciation on total investments decreased by $110,240 during the three months ended March 31, 2025[145]. - The net decrease in net assets resulting from operations for the three months ended March 31, 2025, was $(223,458), compared to $(1,092,451) for the same period in 2024[147]. Operating Expenses - Operating expenses for the three months ended March 31, 2025, totaled approximately $119,183, compared to $(2,783,427) in the same period of 2024, with significant components including management fees of $7,378 and professional fees of $54,330[140]. - The company may experience losses if management fees and other operating expenses exceed interest income on cash holdings[167]. Investment Strategy - The portfolio composition as of March 31, 2025, included 54.1% in Exchange-Traded/Money Market Funds and 24.9% in Advanced Materials[137]. - The company invests at least 80% of its net assets in technology companies, defined as those deriving at least 50% of revenues from the information technology or cleantech sectors[133]. - The company is required to invest at least 70% of total assets in qualifying assets, including securities of private or micro-cap public U.S. companies[132]. - The company invests in small companies, and its investments in these companies are considered speculative in nature, subject to legal or contractual restrictions on resale[166]. Financial Obligations and Reserves - The company has no contractual obligations or off-balance sheet arrangements that require disclosure[150][151]. - As of March 31, 2025, a portion of the company's assets was invested in cash and/or cash equivalents, which are expected to earn low yields[167]. - The company holds cash reserves to avoid dilution in future financings and to invest additional capital into existing portfolio companies[168]. Accounting and Valuation - The company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the cost basis of the investment[156]. - The values assigned to the company's assets are based on available information and may differ significantly from amounts ultimately realized[165]. - The company believes that the impact of recently issued accounting standards that are not yet effective will not have a material impact on its financial statements upon effectiveness[157]. Market Conditions - Changes in valuation of investments in privately-held companies may be volatile, with potential for significant fluctuations in value[163]. - Inflation has not had a significant effect on the company's results of operations in the reporting periods presented[158]. - The company is required to distribute substantially all of its net realized gains to stockholders on an annual basis[169].

Core Viewpoint - Firsthand Technology Value Fund, Inc. reported a decline in net assets and investment performance for the quarter ended March 31, 2025, indicating challenges in its portfolio management and market conditions [1][2][5]. Financial Summary - As of March 31, 2025, the Fund's net assets were approximately $0.8 million, or $0.12 per share, down from $1.1 million, or $0.15 per share as of December 31, 2024 [2]. - The Fund's total assets were valued at approximately $1.49 million, with total liabilities of $0.65 million, resulting in net assets of $0.84 million [3]. - The Fund reported total investment income of approximately $6 thousand for the quarter, with a net investment loss of approximately $113 thousand and net realized and unrealized losses on investments of approximately $110 thousand [5]. Portfolio Management - The Valuation Committee adjusted the fair values of private companies in the portfolio, considering performance, recent transactions, and market multiples [4]. - The Fund continued to manage its portfolio prudently, collaborating with portfolio companies to enhance performance and identify exit opportunities [6]. Company Overview - Firsthand Technology Value Fund, Inc. is a publicly traded venture capital fund focused on technology and cleantech investments, aiming for long-term capital growth [7][8].

Core Viewpoint - Rosen Law Firm is reminding purchasers of common stock of Firsthand Technology Value Fund, Inc. about the lead plaintiff deadline for a class action lawsuit related to significant shareholder value destruction and fraudulent valuations during the Class Period from January 1, 2021, to November 14, 2023 [1][5]. Group 1: Class Action Details - Investors who purchased Firsthand Technology common stock during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by May 20, 2025 [3]. - The lawsuit alleges that the Fund's managers destroyed over $200 million in shareholder value and inflated the value of remaining investments using implausible valuation methodologies [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, and many attorneys at the firm have received accolades from Lawdragon and Super Lawyers [4].

Financial Performance - For the year ended December 31, 2024, the investment income was $109,836, a decrease from $122,631 in 2023, primarily due to interest accrued on Hera[183]. - Operating expenses for the year ended December 31, 2024 totaled approximately $1,322,901, down from $1,583,768 in 2023, mainly due to a decrease in total net assets[186]. - The net investment income for the year ended December 31, 2024 was $1,875,422, an increase from $1,081,579 in 2023, primarily due to a waiver of investment advisory fees[190]. - The net decrease in net assets resulting from operations for the year ended December 31, 2024 was $199,692, significantly lower than the $29,349,220 decrease in 2023[200]. - The total cash reserves and liquid securities decreased approximately 80% in 2024, primarily due to the sale of portfolio securities and operating expenses[206]. - Realized losses for the year ended December 31, 2024 were approximately $11,686,668, higher than the $7,864,982 losses in 2023, primarily due to the sale of investments[193]. - The net unrealized depreciation on total investments decreased by $9,611,554 in 2024, attributed to the liquidation of the investment in Hera Systems[195]. Asset Valuation - As of December 31, 2024, net assets totaled approximately $1.1 million, with a NAV per share of $0.15[209]. - The fair value of the investment portfolio as of December 31, 2024 showed a significant increase in Exchange-Traded/Money Market Funds to 70.3% from 5.8% in 2023[181]. - As of December 31, 2024, the investment in EQX Capital, Inc. had an aggregate fair value of approximately $29 thousand, consisting of 1,930,000 shares of Series A preferred stock and 100,000 shares of common stock[211]. - The investment in IntraOp Medical Corporation included 26,856,187 shares of Series C preferred stock and various convertible notes, with a combined aggregate fair value of approximately $25 thousand[213]. - The investment in UCT Coatings, Inc. consisted of 1,500,000 shares of common stock with a combined fair value of approximately $260 thousand[217]. - The investment in Wrightspeed, Inc. included 60,733,693 shares of Series AA preferred stock and multiple convertible notes, with a combined fair value of approximately $0[219]. - The investment in Fidelity Investments Money Market Treasury Portfolio had a market value of approximately $745 thousand, consisting of 745,224 shares[223]. Capital Management - The company expects to raise additional capital through future equity offerings to support growth, which may lead to dilution for existing investors if offered below NAV[209]. - The company intends to distribute at least 90% of its ordinary income and realized net short-term capital gains annually to qualify as a RIC and avoid corporate-level tax[224]. - The Company is required to distribute substantially all net realized gains to shareholders annually, holding proceeds of liquidated investments in cash pending distribution[246]. Legal and Compliance - The company does not have any contractual obligations or off-balance sheet arrangements that require disclosure[225][226]. - The company has evaluated subsequent events and intends to vigorously defend against allegations in ongoing legal complaints[234][236]. - The company believes that the impact of recently issued accounting standards will not have a material impact on its financial statements[231]. Financial Reporting - The consolidated financial statements present fairly the financial position of the Company as of December 31, 2024 and 2023, in conformity with generally accepted accounting principles[247]. - The Company announced approval to withdraw its BDC election and pursue liquidation[252]. Risk Management - As of December 31, 2024, a significant portion of the Fund's assets is held in cash and/or cash equivalents, which are expected to earn low yields[244]. - The Fund may experience losses if management fees and operating expenses exceed interest income from cash holdings[244]. - The company measures realized gains or losses based on the difference between net proceeds from the sale and the cost basis of the investment[230].