Investment Income and Losses - Investment income for the three months ended September 30, 2024, was $35,792, compared to an investment loss of $(234,126) for the same period in 2023, indicating a significant recovery [150]. - For the nine months ended September 30, 2024, investment income was $97,793, up from $88,812 in the same period of 2023, attributed to increased accrued interest [164]. - Net investment income before taxes for the nine months ended September 30, 2024, was $2,280,700, compared to $1,360,195 for the same period in 2023, primarily due to the management fee waiver [169]. - Net investment loss before taxes for the three months ended September 30, 2024, was $(355,961), compared to a net investment gain of $1,865,387 for the same period in 2023, reflecting a decline in management fees [156]. - The company recognized net realized losses of approximately $(11,686,668) for the nine months ended September 30, 2024, compared to $(7,864,982) for the same period in 2023 [172][173]. Operating Expenses - Operating expenses for the three months ended September 30, 2024, totaled approximately $391,753, a decrease from $(2,099,513) in the same period of 2023, primarily due to a management fee waiver in 2023 [152][154]. - Operating expenses for the nine months ended September 30, 2024, were approximately $(2,182,907), compared to $(1,271,383) in 2023, with a significant management fee waiver of $(3,079,128) in 2024 [166][168]. Net Assets and Operations - The net increase in net assets resulting from operations for the three months ended September 30, 2024, was $526,227, while the net decrease for the same period in 2023 was $(10,418,360) [162][163]. - For the nine months ended September 30, 2024, the net increase in net assets resulting from operations totaled $283,776, with a basic and fully diluted net change in net assets per share of $0.04 [173]. - In contrast, for the nine months ended September 30, 2023, the net decrease in net assets resulting from operations was $(29,928,895), with a basic and fully diluted net change in net assets per share of $(4.34) [174]. Portfolio Valuation and Composition - The fair value of the investment portfolio decreased to approximately $1.4 million as of September 30, 2024, from approximately $8.7 million as of December 31, 2023 [144]. - The portfolio composition as of September 30, 2024, included 64.6% in Exchange-Traded/Money Market Funds, a significant increase from 5.8% as of December 31, 2023 [146]. - The valuation of portfolio investments is determined in good faith by the Board of Directors, with assistance from a Valuation Committee and independent valuation firms when necessary [180][189]. Unrealized Depreciation - Net unrealized depreciation on portfolio investments as of September 30, 2024, was $(115,544,196), compared to $(126,091,989) as of September 30, 2023, indicating a reduction in unrealized losses [158][160]. - As of September 30, 2024, the gross unrealized depreciation on portfolio investments was $(115,544,196), a slight improvement from $(126,091,989) as of September 30, 2023 [170][171]. - During the same period, net unrealized depreciation on total investments decreased by $9,689,744, primarily due to an increase in the fair value of portfolio companies, notably Hera [171]. Cash and Obligations - The company holds a portion of its assets in cash and cash equivalents, which may lead to losses if management fees exceed interest income due to the low yield environment [194]. - The company is required to distribute substantially all of its net realized gains to stockholders on an annual basis, impacting cash reserves from liquidated investments [196]. - The company does not have any contractual obligations or off-balance sheet arrangements that require disclosure [177][178]. Impact of Inflation - Inflation has not significantly affected the company's results of operations, although portfolio companies may experience its impacts [185].

Investment Performance - Investment income for the three months ended June 30, 2024, was $29,956, a decrease of 77.3% compared to $131,676 for the same period in 2023[150][151] - For the six months ended June 30, 2024, investment income was $62,001, a decline of 80.8% from $322,938 in the same period of 2023[163][164] - Net investment loss before taxes for the three months ended June 30, 2024, was $(171,811), an improvement from $(307,103) for the same period in 2023[154] - Net investment income for the six months ended June 30, 2024, was $2,636,661, a significant turnaround from a net investment loss of $(505,192) in the same period of 2023[168] Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled approximately $208,767, down 52.5% from $438,779 in the same period of 2023[152] - Operating expenses for the six months ended June 30, 2024, were approximately $(2,574,660), compared to $828,130 for the same period in 2023[166] Portfolio Valuation - The fair value of the investment portfolio decreased to approximately $5.7 million as of June 30, 2024, from approximately $8.8 million as of December 31, 2023[144] - Net unrealized depreciation on portfolio investments as of June 30, 2024, was $(128,112,931), compared to $(113,808,360) as of June 30, 2023[156] - As of June 30, 2024, the gross unrealized depreciation on portfolio investments was $(128,112,931), with no gross unrealized appreciation[169] - The valuation of portfolio investments is determined in good faith by the Board of Directors, with assistance from a Valuation Committee and potentially an independent valuation firm[177][187] Net Assets and Changes - For the six months ended June 30, 2024, the net decrease in net assets resulting from operations was $(242,451), with a basic and fully diluted net change in net assets per share of $(0.04)[171] - For the six months ended June 30, 2023, the net decrease in net assets resulting from operations was $(19,510,535), with a basic and fully diluted net change in net assets per share of $(2.83)[172] - The company recognized net realized losses of approximately $(7,864,997) from the sale of investments during the six months ended June 30, 2023[170] Strategic Focus - The company expects to create a pipeline of potential exit opportunities through IPOs or acquisitions as portfolio companies mature[147] - The investment strategy focuses on technology and cleantech companies, with at least 80% of net assets allocated to these sectors[142] Other Considerations - The company does not have any contractual obligations or off-balance sheet arrangements that require disclosure[174][175] - The company holds a portion of its assets in cash and cash equivalents, which may lead to losses if management fees exceed interest income[192] - There have been no material events related to the portfolio of investments subsequent to June 30, 2024[184] - Inflation has not significantly affected the company's results of operations, although portfolio companies may experience its impacts[183]

Financial Performance - Investment income for Q1 2024 was $32,045, a decrease from $191,262 in Q1 2023, primarily due to a decline in accrued interest on current notes [150][151]. - Operating expenses for Q1 2024 totaled approximately $(2,783,427), significantly higher than $389,351 in Q1 2023, mainly due to a management fee expense waiver of $(3,000,000) [152][153]. - Net investment income for Q1 2024 was $2,815,472, compared to a loss of $(198,089) in Q1 2023, attributed to the management fee waiver [154][161]. - The net decrease in net assets resulting from operations for Q1 2024 was $(1,092,451), an improvement from $(4,742,224) in Q1 2023 [160][161]. Investment Portfolio - The fair value of the investment portfolio decreased to approximately $4.7 million as of March 31, 2024, down from approximately $8.7 million as of December 31, 2023 [144]. - The net unrealized depreciation on portfolio investments as of March 31, 2024, was $(129,141,664), compared to $(99,347,163) as of March 31, 2023 [156][158]. - The portfolio composition as of March 31, 2024, included 74.7% in Medical Devices and 1880.9% in Aerospace, reflecting significant sector shifts [146]. - The company invests at least 80% of net assets in technology companies, with a focus on those deriving at least 50% of revenues from the information technology or cleantech sectors [142]. - The company invests in small companies, which are considered speculative and may be subject to legal or contractual restrictions on resale [180]. - Valuation of investments in privately-held companies is determined in good faith by the Board of Directors, potentially differing from market values due to lack of public market [176]. - Changes in valuation of investments in privately-held companies may be volatile, with potential for significant value loss or gain [178]. - There have been no material events related to the company's portfolio of investments since the close of the fiscal quarter on March 31, 2024 [173]. Cash and Distributions - As of March 31, 2024, a portion of the company's assets was invested in cash and/or cash equivalents, which are expected to earn low yields [181]. - The company is required to distribute substantially all of its net realized gains to stockholders on an annual basis, holding proceeds of liquidated investments in cash pending distribution [183]. - The board of directors will determine the timing and amount of distributions, with no minimum distribution requirements [162]. Internal Controls and Procedures - The company evaluates its disclosure controls and procedures, concluding they are effective in ensuring timely and accurate reporting [185]. - No changes in internal control over financial reporting occurred during the fiscal quarter that materially affected the company's reporting [185]. Economic Factors - Inflation has not significantly affected the company's results of operations, although portfolio companies may experience its impacts [172]. Other Information - The company has no contractual obligations or off-balance sheet arrangements that require disclosure [163][164]. - The company holds cash reserves to avoid dilution in future financings and to support additional investments in portfolio companies [182].

[Part I: Business and Risk Factors](index=4&type=section&id=Part%20I) [Business Overview](index=4&type=section&id=Item%201.%20Business) Firsthand Technology Value Fund (SVVC) is an externally managed BDC investing in technology and cleantech for long-term capital growth, with a $8.7 million portfolio as of December 31, 2023, and a plan to liquidate - The Company is a BDC focused on long-term capital growth, investing at least **80% of assets in technology and cleantech** and **70% in private or micro-cap public companies**[15](index=15&type=chunk)[18](index=18&type=chunk) Portfolio Composition as of December 31, 2023 | Investment | Business Description | Fair Value (USD) | | :-------------------------- | :------------------------ | :--------------- | | Hera Systems, Inc. | Aerospace | $4.20 million | | Revasum, Inc. | Semiconductor Equipment | $3.86 million | | UCT Coatings, Inc. | Advanced Materials | $0.30 million | | EQX Capital, Inc. | Equipment Leasing | $0.11 million | | Kyma, Inc. | Advanced Materials | $0.10 million | | IntraOp Medical Corp. | Medical Devices | $0.09 million | | Fidelity Money Market | Investment Company | $0.07 million | | Lyncean Technologies, Inc. | Semiconductor Equipment | $0 | | Wrightspeed, Inc. | Automotive | $0 | - The Investment Adviser, FCM, charges a **2.00% base management fee** on gross assets and a **20% incentive fee** on cumulative realized capital gains, net of losses and depreciation[99](index=99&type=chunk)[102](index=102&type=chunk) - On October 13, 2023, the Fund announced a plan to seek shareholder approval to withdraw its BDC election and pursue liquidation[312](index=312&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including dependence on key personnel, intense competition, regulatory constraints, and valuation uncertainties from its illiquid, non-diversified, and speculative private and micro-cap portfolio - The Company is highly dependent on FCM's management, particularly Mr. Landis, and the loss of key personnel could significantly impair investment objectives[108](index=108&type=chunk)[109](index=109&type=chunk) - As a non-diversified investment company, the fund's concentration in a small number of issuers increases volatility and susceptibility to specific economic or regulatory events[121](index=121&type=chunk) - A large percentage of the portfolio consists of non-publicly traded securities whose fair value, determined by the Board, is inherently uncertain and may differ materially from realized values[123](index=123&type=chunk) - The incentive fee structure may induce FCM to make riskier or more speculative investments for higher returns, potentially misaligning with shareholder interests[129](index=129&type=chunk) [Cybersecurity](index=25&type=section&id=Item%201C.%20Cybersecurity) The Board oversees the cybersecurity risk management program, implemented daily by the Investment Adviser, which has not materially affected the company's business, operations, or financial condition - The Board oversees cybersecurity risk, with the Investment Adviser managing daily implementation of policies covering threat identification, technical safeguards, incident response, and third-party risk[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - The Company concluded that cybersecurity threats have not materially affected and are not reasonably likely to materially affect its business strategy, results of operations, or financial condition[155](index=155&type=chunk) [Part II: Market and Financial Information](index=26&type=section&id=Part%20II) [Market for Common Equity and Shareholder Matters](index=26&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SVVC common stock traded on Nasdaq, with its price declining significantly in 2023, no distributions made, and cumulative total return substantially underperforming major indices since inception 2023 Quarterly Stock Price Range | Quarter Ending | Low | High | | :------------- | :----- | :----- | | March 31 | $0.92 | $1.15 | | June 30 | $0.61 | $0.98 | | September 30 | $0.42 | $0.69 | | December 31 | $0.18 | $0.42 | - No distributions were made to shareholders during **2023**[164](index=164&type=chunk) - The company's performance since its 2011 inception has significantly underperformed the S&P 500 and NASDAQ Composite indices, attributed to its private company portfolio not appreciating during the public market bull run[166](index=166&type=chunk)[168](index=168&type=chunk) [Management's Discussion and Analysis (MD&A)](index=30&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, the fund's net assets decreased by **$29.3 million** to **$1.3 million** ($0.18/share), driven by **$22.6 million** in net unrealized depreciation and a **$7.9 million** net realized loss, significantly straining liquidity Results of Operations (2021-2023) | Metric | 2023 (USD) | 2022 (USD) | 2021 (USD) | | :--------------------------------------- | :---------------- | :----------------- | :--------------- | | Total Investment Income | $0.12 million | ($10.01 million) | $6.32 million | | Total Net Expenses | ($0.96 million) | $2.44 million | $3.26 million | | Net Realized and Unrealized Loss | ($30.43 million) | ($51.70 million) | ($10.45 million) | | **Net Decrease in Net Assets** | **($29.35 million)**| **($64.15 million)** | **($7.39 million)**| | **Net Decrease in Net Assets Per Share** | **($4.26)** | **($9.31)** | **($1.07)** | - Net unrealized depreciation on investments increased by **$22.6 million** in 2023, primarily due to decreases in the value of IntraOp Medical and Wrightspeed[203](index=203&type=chunk) - The company's financial condition significantly deteriorated, with net assets falling to **$1.3 million** ($0.18/share) at year-end 2023 from **$30.6 million** ($4.44/share) at year-end 2022[219](index=219&type=chunk) - Since June 2018, the company has been taxed as a C corporation after failing to meet RIC diversification requirements, primarily due to the increased value of its holding in Pivotal Systems Corp at the time[208](index=208&type=chunk) [Market Risk Disclosures](index=40&type=section&id=Item%207A.%20Quantitative%20And%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's principal market risks are valuation risk from illiquid, privately-held securities and small company investment risk from speculative, immature businesses with high loss potential - The primary market risk is valuation risk, as the portfolio is heavily weighted towards illiquid private company securities whose values, determined by the Board, may differ significantly from realizable values[246](index=246&type=chunk)[247](index=247&type=chunk) - The fund faces significant risk from investments in small, speculative companies, which are often subject to resale restrictions and have a higher risk of loss compared to traditional investments[251](index=251&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited financial statements confirm a severe decline in 2023, with net assets plummeting to **$1.3 million** ($0.18/share), auditor highlighting Level 3 investment valuation as a Critical Audit Matter and the liquidation plan, and subsequent suspension of Revasum, Inc. securities - The independent auditor's report identifies Level 3 investment valuation as a **Critical Audit Matter** and includes an Emphasis of Matter paragraph highlighting the company's plan to withdraw its BDC election and pursue liquidation[261](index=261&type=chunk)[264](index=264&type=chunk) Consolidated Statement of Assets and Liabilities Highlights | Metric | Dec 31, 2023 (USD) | Dec 31, 2022 (USD) | | :-------------------------- | :----------------- | :----------------- | | Total Investments (Market) | $8.73 million | $40.12 million | | Total Assets | $8.81 million | $40.20 million | | Total Liabilities | $7.55 million | $9.59 million | | **Net Assets** | **$1.26 million** | **$30.61 million** | | **Net Asset Value Per Share** | **$0.18** | **$4.44** | - As of December 31, 2023, Level 3 investments were valued at **$4.8 million**, representing **381% of total net assets** of **$1.3 million**, indicating extreme concentration and valuation risk[261](index=261&type=chunk)[355](index=355&type=chunk) - Subsequent to year-end, in February and March 2024, portfolio company Revasum, Inc. had its securities suspended from quotation on the Australian Securities Exchange (ASX)[420](index=420&type=chunk)[421](index=421&type=chunk) - The company has significant tax loss carryforwards, including **$12.4 million** in net operating losses and **$32.7 million** in net capital losses, but has placed a full valuation allowance on its deferred tax assets, indicating unlikelihood of realization[385](index=385&type=chunk)[390](index=390&type=chunk) [Controls and Procedures](index=94&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2023, with no material changes reported - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[422](index=422&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023, based on the COSO framework[424](index=424&type=chunk) [Part III: Corporate Governance and Compensation](index=95&type=section&id=Part%20III) [Directors, Executive Compensation, and Related Matters](index=95&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information regarding directors, executive compensation, corporate governance, security ownership, and principal accountant fees is incorporated by reference from the forthcoming 2024 Proxy Statement - Detailed information for Items 10 through 14 is incorporated by reference from the forthcoming 2024 Proxy Statement[429](index=429&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk)

Financial Performance - As of September 30, 2023, total assets decreased to $8,138,811 from $40,203,857 as of December 31, 2022, representing a decline of approximately 79.8%[9] - Total liabilities decreased to $7,458,115 from $9,594,266, a reduction of about 22.2%[9] - Net assets significantly decreased to $680,696 from $30,609,591, indicating a drop of approximately 97.8%[9] - For the three months ended September 30, 2023, net investment income was $1,865,387 compared to a loss of $8,843,969 for the same period in 2022[12] - The net decrease in net assets resulting from operations for the nine months ended September 30, 2023, was $29,928,895, compared to $56,319,999 for the same period in 2022[12] - Total investment income for the three months ended September 30, 2023, was $(234,126), a significant decline from $(8,300,245) in the same period last year[12] - The net realized and unrealized loss on investments for the nine months ended September 30, 2023, was $(31,289,090), compared to $(44,186,398) for the same period in 2022[12] - The net asset value per share dropped to $0.10 from $4.44, reflecting a decrease of approximately 97.8%[9] - The company reported a net cash used in operating activities of $(94) for the three months ended September 30, 2023, compared to a net cash provided of $3,198 for the same period in 2022[15] - Net asset value at the beginning of the period was $4.44, down from $13.75 in the previous year, representing a decline of 67.7%[18] - Total return based on net asset value for the nine months ended September 30, 2023, was (97.75)%, significantly lower than (67.71)% in the previous year[18] Investment Strategy and Portfolio - The company has made significant investments in companies like Hera Systems, Inc., with a convertible note valued at $5,359,791, indicating a focus on aerospace and medical devices sectors[22] - The company holds convertible notes from Intraop Medical Corp. maturing in December 2023 with an interest rate of 15%, totaling $15,000,000 across multiple issuances[24] - The total value of investments in Intraop Medical Corp. is reported at $168,647, with a cost basis of $168,647[25] - The company has a significant investment in Revasum, Inc., with a value of $39,774,889 and a cost basis of $9,268,219, reflecting a substantial gain[26] - The investment in Kyma, Inc. represents 14.7% of the portfolio, with a convertible note maturing in March 2024 valued at $100,000[25] - The company has invested in UCT Coatings, Inc. with a common stock value of $1,500,000 and a cost basis of $662,235, indicating a potential for growth[26] - The preferred stock investment in Lyncean Technologies, Inc. shows a cost basis of $1,000,000 but currently holds no value[26] - The company has a term note investment maturing in December 2023 with an interest rate of 8%, totaling $5,000,000 across two issuances[25] - The total value of the portfolio as of September 30, 2023, is not explicitly stated but includes multiple investments across various sectors[24][25][26] - The company is focused on advanced materials and semiconductor equipment sectors, indicating a strategic emphasis on high-growth industries[26] Financial Position and Liabilities - Total investments amount to $134,199,707, representing 1191.1% of net assets[29] - Net assets stand at $680,696, with liabilities exceeding other assets by 1091.1%[29] - The company holds $4,569,453 in restricted securities, accounting for 671.3% of net assets[30] - The company’s total liabilities are reported at $(7,427,021)[29] - The company’s liabilities exceeded other assets by 31.1%, resulting in net assets of $30,609,591[44] Management and Fees - The base management fee is set at an annual rate of 2.00% of gross assets, payable quarterly[76] - A fee waiver agreement has been established, waiving $2.5 million of accrued but unpaid base management fees prior to September 30, 2023[78] - The incentive fee is 20% of realized capital gains, with no adjustments for the three months ended September 30, 2023[77] - A waiver of management fees of $2,500,000 was approved by the Board for the quarter ended September 30, 2023[168] Market and Economic Conditions - The company faces significant risks from market disruptions and geopolitical events, including the ongoing impacts of COVID-19 and the Russia-Ukraine conflict[134] - The overall performance of the fund's investments reflects a challenging market environment, with several positions showing significant unrealized losses[37] Valuation and Fair Value - The company relies primarily on the market approach for fair value measurement, considering income and asset-based approaches as necessary[87] - The valuation of privately-held companies is subject to significant estimates and judgments, which may lead to volatility in reported values[72] - The total fair value of the Company's investments as of September 30, 2023, includes $305,539 in Level 1 assets, $3,132,725 in Level 2 assets, and $4,669,453 in Level 3 assets[93] - The company has established a full valuation allowance on its net deferred tax assets, indicating a low likelihood of realizing these assets[111] Shareholder Actions and Corporate Governance - The company plans to seek stockholder approval to withdraw its BDC election and pursue liquidation, as announced on October 13, 2023[137] - The company’s shares were listed on the NASDAQ Global Market under the symbol "SVVC" but intended to voluntarily delist on October 6, 2023[47] - As of September 30, 2023, eligible directors have deferred 50% of their compensation, with payments due at the earlier of January 1, 2025, or their separation from the Fund[68] Investment Performance and Losses - The company recognized net realized losses of approximately $(7,864,982) from the sale of investments during the nine months ended September 30, 2023[176] - For the nine months ended September 30, 2023, the net unrealized depreciation on total investments increased by $23,424,108, primarily due to decreases in valuations of Wrightspeed, Hera Systems, and IntraOp Medical holdings [177] - The company reported a gross unrealized depreciation of $(126,091,990) as of September 30, 2023[106]

Financial Performance - As of June 30, 2023, total assets decreased to $20,942,221 from $40,203,857 as of December 31, 2022, representing a decline of approximately 48.1%[10] - Total market value of investments dropped to $20,612,957 from $40,121,924, a decrease of about 48.7%[10] - For the three months ended June 30, 2023, total investment income was $131,676, compared to a loss of $3,812,911 for the same period in 2022[13] - Net investment loss for the six months ended June 30, 2023, was $(505,192), compared to $(3,289,632) for the same period in 2022[13] - The net decrease in net assets resulting from operations for the three months ended June 30, 2023, was $(14,768,311), compared to $(37,608,487) for the same period in 2022[13] - The net asset value per share decreased to $1.61 as of June 30, 2023, down from $4.44 as of December 31, 2022[10] - The company reported net realized and unrealized losses on investments of $(14,461,208) for the three months ended June 30, 2023[13] - The net decrease in net assets resulting from operations for the six months ended June 30, 2023, was $(19,510,535), an improvement from $(44,958,429) in the same period of 2022[174] Investment Portfolio - The company holds significant investments in HERA SYSTEMS, INC. (68.7% of net assets) and INTRAOP MEDICAL CORP. (45.4% of net assets) as of June 30, 2023[25] - Firsthand Technology Value Fund holds a significant investment in Revasum, Inc., valued at $39,774,889, representing 33.4% of net assets[28] - The fund's investment in Intraop Medical Corp. includes multiple convertible notes maturing in December 2023, with a total value of $10,961,129 and a cost basis of $10,961,129[26] - The fund has invested $2,000,000 in a term note maturing in December 2023 with an interest rate of 8%[27] - The total value of the investment in UCT Coatings, Inc. is $1,500,000, with a cost basis of $662,235, representing 2.4% of net assets[28] - The company has a diverse portfolio with investments across various sectors, including aerospace, medical devices, and advanced materials[36] - The total value of controlled investments as of June 30, 2023, is $39,349,502, with a realized loss of $7,864,997[126] Financial Ratios and Metrics - The ratio of total expenses to average net assets increased to 7.16% for the six months ended June 30, 2023, compared to 4.11% for the year ended December 31, 2022[19] - Net investment income (loss) ratio to average net assets was (4.37)% for the six months ended June 30, 2023, compared to (20.96)% for the year ended December 31, 2022[19] - The total fair value of the Company's net assets as of June 30, 2023, is $20,612,957, which includes $4,276,596 in Level 1 assets and $16,336,361 in Level 3 assets[89] - The net unrealized depreciation on total investments increased by $11,140,362 during the six months ended June 30, 2023[170] Investment Strategy - The company has a policy to invest at least 80% of its assets in technology companies, which derive at least 50% of their revenues from the information technology or cleantech sectors[47] - The company’s investment strategy includes a focus on convertible notes and preferred stocks, indicating a preference for hybrid securities[31] - The company’s investment strategy includes a focus on privately held companies and public companies with market capitalizations less than $250 million[47] - The company expects a pipeline of potential exit opportunities through IPOs or acquisitions as portfolio companies mature[140] Cash and Liquidity - Cash and foreign currency at the end of the period was $2,703, down from $3,404 at the beginning of the period[15] - 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[177] - As of June 30, 2023, a portion of the company's assets was held in cash and cash equivalents, which are expected to earn low yields, potentially leading to losses if operating expenses exceed interest income[197] Valuation and Reporting - The Company utilizes a multi-step valuation process for investments without readily available market quotations[73] - The independent valuation firm assists the Board in determining the fair value of select portfolio investments each quarter[71] - The valuation of privately-held companies is subject to significant estimates and judgments, which may lead to volatility in reported values[70] - The fair value hierarchy includes Level 1, Level 2, and Level 3 measurements, with Level 3 requiring the most judgment in valuation[87] Legal and Compliance - The company is not involved in any material pending legal proceedings[204] - There have been no material changes in risk factors since the last Form 10-K filing[205] - There were no unregistered sales of equity securities during the reporting period[206] - The company has not experienced any defaults upon senior securities[207]

Financial Performance - As of March 31, 2023, total assets decreased to $35,620,583 from $40,203,857 as of December 31, 2022, representing a decline of approximately 11.5%[10] - Total liabilities increased to $9,753,216 from $9,594,266, marking a rise of about 1.7%[10] - Net assets decreased to $25,867,367 from $30,609,591, reflecting a decline of approximately 15.5%[10] - Total investment income for the three months ended March 31, 2023, was $191,262, down 90.1% from $1,936,290 for the same period in 2022[13] - Net investment income resulted in a loss of $198,089 for Q1 2023, compared to a gain of $1,203,425 in Q1 2022[18] - The net decrease in net assets resulting from operations was $4,742,224 for Q1 2023, compared to a decrease of $7,349,942 in Q1 2022[18] - The company reported a total return based on net asset value of (15.54)% for the three months ended March 31, 2023[19] - Operating expenses totaled approximately $389,351 for the three months ended March 31, 2023, compared to $732,865 for the same period in 2022, reflecting a reduction of about 46.8%[154] - The net investment loss before taxes was $(198,089) for the three months ended March 31, 2023, compared to a net investment income of $1,203,425 for the same period in 2022, marking a change of approximately 116.5%[156] Investment Portfolio - The company has made significant investments in companies like Hera Systems, Inc. and IntraOp Medical Corp., with substantial holdings in convertible notes and preferred stocks[26] - The company holds convertible notes from Intraop Medical Corp. maturing in December 2023 with an interest rate of 15%, totaling $3,000,000 in value[28] - The cost basis for the convertible notes from Intraop Medical Corp. is $3,000,000, with a current value of $1,544,202, indicating a significant unrealized loss[29] - The company has invested $39,774,889 in RevAsum, Inc., which represents 24.7% of its net assets, with a current value of $6,381,006[31] - The company has a total investment of $14,315,334 in various notes and stocks, with a focus on advanced materials and semiconductor equipment sectors[29] - The company has convertible notes from Wrightspeed, Inc. maturing in June 2023, with a total value of $4,929,015 and an interest rate of 12%[31] - The company’s investment strategy includes a focus on convertible notes and preferred stocks, indicating a preference for fixed-income securities in its portfolio[29] - The total investments amounted to $136.7 million, representing a 136.7% increase over the cost basis of $134.7 million[35] - The total value of convertible notes held by Intraop Medical Corp. includes multiple issuances, with the latest being $1,000,000 issued on October 22, 2021[41] - The fund's investment strategy includes a focus on medical devices, aerospace, and advanced materials sectors, indicating a diversified portfolio[39] Valuation and Fair Value - The fair value of the investment portfolio was approximately $35.4 million as of March 31, 2023, down from approximately $40.2 million as of December 31, 2022, representing a decrease of about 19.0%[145] - The total gross unrealized depreciation of the Company's investments was $(101,061,201), resulting in a net unrealized depreciation of $(99,347,163) as of March 31, 2023[108] - The company utilizes a multi-step valuation process for investments lacking readily available market quotations[81] - The fair value hierarchy prioritizes Level 1 measurements based on unadjusted quoted prices in active markets[90] - The market approach is primarily relied upon for fair value measurements, supplemented by income and asset-based approaches[88] Regulatory Compliance and Strategy - The company is required to invest at least 70% of its total assets in qualifying assets as part of its regulatory compliance[141] - The company invests at least 80% of its assets in technology companies, with a focus on those deriving at least 50% of revenues from the information technology or cleantech sectors[52] - The company may invest up to 30% of the portfolio in opportunistic investments outside of private and micro-cap public companies[144] - The board of directors will determine the timing and amount of distributions, with no minimum distribution requirement on income or capital gains[164] Risks and Future Outlook - The company has significant exposure to geopolitical risks, including the impact of the COVID-19 pandemic and the Russia-Ukraine conflict on financial performance[136] - The company anticipates that its future operating results will be influenced by the general economy and the performance of its portfolio companies[141] - Investments in immature privately-held companies are inherently more volatile and can lose or gain value suddenly due to internal or external events[178][179] Tax and Legal Matters - The Company has net operating loss carryforwards of $16,500,072 for federal and state income tax purposes, which may be carried forward indefinitely[119] - The effective tax rate for the three-month period ended March 31, 2023, was 0%, consistent with the previous year, due to changes in deferred tax assets and valuation allowances[113] - The Company has established a full valuation allowance on its net deferred tax assets, indicating that it is more likely than not that these assets will not be realized in the future[114] - The Company was taxed as a corporation for fiscal year 2018 and will continue to be taxed in that manner unless it qualifies again as a regulated investment company (RIC)[105] - There have been no changes in internal control over financial reporting that materially affected the company's reporting[187] - The company is not a party to any material pending legal proceedings[190]

Financial Performance - For the year ended December 31, 2022, the company reported an investment income of $(10,008,422), a decrease from $6,318,695 in 2021, primarily due to an interest adjustment on convertible/term note investments [190]. - Operating expenses for the year ended December 31, 2022 totaled approximately $2,439,045, down from $3,255,258 in 2021, mainly due to a decrease in total net assets [193]. - The net investment loss before taxes for the year ended December 31, 2022 was $(12,447,467), compared to a gain of $3,063,437 in 2021, attributed to interest adjustments on convertible notes [198]. - The company recognized net realized losses of approximately $3,129,665 from the sale of investments during the year ended December 31, 2022, higher than the realized gains in 2021 [202]. - The net decrease in net assets resulting from operations for the year ended December 31, 2022 was $64,145,033, with a basic and fully diluted net change in net assets per share of $(9.31) [210]. Investment Portfolio - As of December 31, 2022, the net unrealized depreciation on portfolio investments was $(102,668,087), reflecting a significant decrease in the value of investments, particularly in IntraOp Medical and Wrightspeed [201]. - The fair value of the investment portfolio as of December 31, 2022 showed a significant increase in Medical Devices to 55.9% from 28.6% in 2021, while Semiconductor Equipment decreased to 11.5% from 32.8% [182]. - The company invests at least 80% of its net assets in technology companies, with a focus on those deriving at least 50% of revenues from the information technology or cleantech sectors [178]. - The company may invest up to 30% of its portfolio in opportunistic investments outside of private and micro-cap public companies, including high-yield bonds and distressed debt [179]. - The investment in Revasum consisted of 39,774,889 shares with an aggregate fair value of approximately $3.5 million as of December 31, 2022 [234]. - The investment in Hera consisted of shares and convertible notes with an aggregate fair value of approximately $7.9 million [223]. - As of December 31, 2022, level 3 investments were valued at $35,929,006, representing 117% of the Company's net assets [267]. Cash and Liquidity - For the year ended December 31, 2022, total cash reserves and liquid securities decreased approximately 74% due to the purchase of portfolio securities [217]. - Cash and cash equivalents increased to $675,826 at the end of 2022, up from $616,064 at the beginning of the year [218]. - The company expects to raise additional capital to support future growth through equity offerings, which may lead to dilution for existing investors [220]. - The Company may hold a substantial portion of its assets in cash and cash equivalents, which are expected to earn low yields, potentially leading to losses if management fees exceed interest income [256]. - The Company is required to distribute substantially all net realized gains to shareholders annually, holding proceeds of liquidated investments in cash pending distribution [258]. Valuation and Risk - The valuation of securities in the portfolio is determined by the Board of Directors and may differ significantly from market values due to the absence of a readily ascertainable market [250]. - Investments in privately held companies are inherently volatile, with potential for sudden loss or gain in value due to internal or external events [252]. - The valuation methods for investments include fundamental analysis, market prices of similar securities, and discounts based on restrictions on securities [250]. - The valuation of level 3 investments involves significant judgment and unobservable inputs, leading to a high degree of auditor judgment and effort [268]. - The values assigned to assets may not represent amounts ultimately realized, as they depend on future circumstances and actual liquidation [253]. Internal Controls and Compliance - The Company maintains effective internal control over financial reporting as of December 31, 2022, according to PCAOB standards [273]. - The company intends to distribute at least 90% of ordinary income and realized net short-term capital gains to qualify as a RIC [236]. - The Company invests in small companies, which are considered speculative and may be subject to legal or contractual restrictions affecting liquidity [254].