Financial Performance - For the year ended December 31, 2023, the investment income was (10,008,422) in 2022[192]. - The net investment gain before taxes for 2023 was (12,447,467) in 2022[198]. - The net decrease in net assets resulting from operations for 2023 was 64,145,033 in 2022[209]. - Realized losses for 2023 amounted to (3,129,665) realized in 2022, primarily due to the sale of investments[201]. - The net unrealized depreciation on total investments increased by 1,583,768 in 2023 from 1,583,768, a decrease from 3,255,258 in 2021[215]. Investment Strategy - 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[179]. - The company has a strategy to invest at least 70% of total assets in privately held companies and public companies with market capitalizations of less than 73,502 at the end of 2022 from 8.7 million as of December 31, 2023[218]. - The investment in Hera Systems, Inc. had an aggregate fair value of approximately 3.9 million[233]. - As of December 31, 2023, level 3 investments were valued at $4,797,872, representing 381% of the Company's net assets[261]. Tax and Distribution Policies - The company is subject to corporate taxes due to a change in tax status, impacting its financial reporting and deferred tax liabilities[208]. - The board of directors intends to pay distributions on an annual basis, distributing at least 90% of ordinary income and realized net short-term capital gains[235]. - The Company is required to distribute substantially all of its net realized gains to shareholders on an annual basis[254]. Risks and Valuation - Investments in privately held, immature companies are inherently more volatile and can lose much or all of their value suddenly[249]. - The values assigned to the Company's assets may differ materially from amounts ultimately realized upon liquidation[250]. - The Company may hold a substantial portion of its assets in cash and/or cash equivalents, which are expected to earn low yields, potentially leading to losses if management fees exceed interest income[252]. - The valuation of level 3 investments involves significant judgment by management, including the use of unobservable inputs, which requires a high degree of auditor judgment[262]. - The Fund's investments in small companies are considered speculative and may be subject to legal or contractual restrictions on resale, affecting liquidity[251]. Corporate Actions - The Company issued a press release announcing approval to withdraw its BDC election and pursue liquidation[264]. - The Company typically reserves cash in an amount at least equal to its initial investment for follow-on opportunities in primary transactions[253]. - The Company has two unconsolidated significant subsidiaries for which audited financial statements as of December 31, 2023 were not available, leading to summarized financial information being presented[265].
Firsthand Technology(SVVC) - 2023 Q4 - Annual Report