Financial Performance - As of June 30, 2023, total assets decreased to 20,942,221from40,203,857 as of December 31, 2022, representing a decline of approximately 48.1%[10] - Total market value of investments dropped to 20,612,957from40,121,924, a decrease of about 48.7%[10] - For the three months ended June 30, 2023, total investment income was 131,676,comparedtoalossof3,812,911 for the same period in 2022[13] - Net investment loss for the six months ended June 30, 2023, was (505,192),comparedto(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),comparedto(37,608,487) for the same period in 2022[13] - The net asset value per share decreased to 1.61asofJune30,2023,downfrom4.44 as of December 31, 2022[10] - The company reported net realized and unrealized losses on investments of (14,461,208)forthethreemonthsendedJune30,2023[13]−ThenetdecreaseinnetassetsresultingfromoperationsforthesixmonthsendedJune30,2023,was(19,510,535), an improvement from (44,958,429)inthesameperiodof2022[174]InvestmentPortfolio−ThecompanyholdssignificantinvestmentsinHERASYSTEMS,INC.(68.739,774,889, 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 10,961,129andacostbasisof10,961,129[26] - The fund has invested 2,000,000inatermnotematuringinDecember2023withaninterestrateof81,500,000, with a cost basis of 662,235,representing2.439,349,502, with a realized loss of 7,864,997[126]FinancialRatiosandMetrics−Theratiooftotalexpensestoaveragenetassetsincreasedto7.1620,612,957, which includes 4,276,596inLevel1assetsand16,336,361 in Level 3 assets[89] - The net unrealized depreciation on total investments increased by 11,140,362duringthesixmonthsendedJune30,2023[170]InvestmentStrategy−Thecompanyhasapolicytoinvestatleast80250 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,downfrom3,404 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]
