Financial Performance - Investment income for Q1 2024 was 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 389,351 in Q1 2023, mainly due to a management fee expense waiver of 2,815,472, compared to a loss of (1,092,451), an improvement from 4.7 million as of March 31, 2024, down from approximately (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].
Firsthand Technology(SVVC) - 2024 Q1 - Quarterly Report