Rand Capital(RAND) - 2024 Q2 - Quarterly Results

Investment Performance - Total investment income increased by 18% to $2.1 million for Q2 2024, driven by a 35% increase in interest from portfolio companies[3] - Total investment income increased by 18% to $2,136,149 for the three months ended June 30, 2024, compared to $1,815,432 for the same period in 2023[16] - Adjusted net investment income per share was $0.44, a 16% increase from $0.38 per share in Q2 2023[5] - Basic and diluted net increase in net assets from operations per share was $3.00 for the three months ended June 30, 2024, compared to $1.04 for the same period in 2023[17] - Net investment (loss) income per share for the three months ended June 30, 2024, is $(0.20), a decrease from $0.19 for the same period in 2023[22] - Excluding expenses for capital gains incentive fees, net investment income per share was $0.64 for the three months ended June 30, 2024, up from $0.19 in the same period of 2023[22] - For the six months ended June 30, 2024, net investment (loss) income per share was $0.12, down from $0.47 for the same period in 2023[22] - The adjusted net investment income per share for the six months ended June 30, 2024, was $0.80, compared to $0.77 in the same period last year[22] Financial Position - Net asset value per share rose to $26.56 at June 30, 2024, reflecting an 11% increase from March 31, 2024, and a 13% increase from year-end 2023[1] - As of June 30, 2024, Rand's portfolio had a fair value of $87.1 million, a 13% increase from December 31, 2023[6] - Net assets at the end of the period were $68,558,616 as of June 30, 2024, compared to $61,402,028 at the same time in 2023[18] Expenses and Costs - Total expenses for Q2 2024 were $2.7 million, up from $1.3 million in the same period last year, primarily due to a $1.2 million increase in capital gains incentive fees[4] - Total expenses for the three months ended June 30, 2024, were $2,652,782, compared to $1,306,741 for the same period in 2023[20] - Adjusted total expenses, excluding capital gains incentive fees, were $1,011,782 for the three months ended June 30, 2024[20] Debt Management - Rand reduced its debt balance by $2.0 million during the quarter, with an additional $2.3 million repaid subsequent to quarter-end[1] - The annualized weighted average yield of debt investments was 13.8% at June 30, 2024, compared to 13.6% at the end of 2023[6] Dividends - A quarterly dividend of $0.29 per share was announced for Q3 2024, consistent with previous distributions[1] - The company declared a dividend of $(748,496) for the three months ended June 30, 2024, compared to $(645,255) in the same period last year[18] Investment Gains and Losses - Net investment (loss) income before income taxes was $(516,633) for the three months ended June 30, 2024, compared to $508,691 for the same period in 2023[16] - Net realized gain on sales and dispositions of investments was $428,108 for the three months ended June 30, 2024, down from $3,480,089 in the same period last year[18] - The company reported a net change in unrealized appreciation on investments of $7,826,860 for the three months ended June 30, 2024[18] Future Outlook - The company expects to leverage capital from the pending sale of portfolio investment company SciAps, anticipated to close later this year[2] - Rand's total debt and equity investment in SciAps had a fair value of $10.8 million at quarter-end[7]