SuRo Capital(SSSS)2024-11-08 13:53Investment Portfolio - The fair value of the company's investment portfolio as of September 30, 2024, was $199,302,778[110] - The fair value of the company's investment portfolio as of September 30, 2023, was $193,492,718, with total investments funded during the same period reaching $21,133,257[113] - The company held 2,296,037 remaining PSQ Holdings, Inc. public warrants as of September 30, 2024[112] - The company invested a total of $21,133,257 in various companies during the nine months ended September 30, 2023[113] Investment Strategy and Philosophy - The company focuses on equity securities of rapidly growing venture capital-backed emerging companies[108] - The investment strategy primarily involves non-controlling equity and equity-related investments, which typically do not produce current income[110] - The company aims to maximize total return through capital gains on equity investments and income from debt investments[108] - The investment philosophy emphasizes identifying promising investments across key industry themes such as Software-as-a-Service and Artificial Intelligence[108] Financial Performance - During the nine months ended September 30, 2024, the company realized a net loss on investments of $14,167,198, with total proceeds from investments amounting to $14,941,469[112] - Total investment income for the nine months ended September 30, 2024, was $3,444,161, a decrease from $4,137,046 in the same period of 2023[116] - The company reported total operating expenses of $13,530,561 for the nine months ended September 30, 2024, compared to $14,832,577 for the same period in 2023[116] - Net investment loss for the nine months ended September 30, 2024, was $(10,086,400), compared to $(10,695,531) for the same period in 2023[116] Unrealized Gains and Losses - The net change in unrealized appreciation for the nine months ended September 30, 2024, was $(13,769,932), compared to $39,427,513 for the same period in 2023, indicating a significant decline in unrealized gains[123] - The net change in unrealized appreciation for the three months ended September 30, 2024, was $11,614,384, down from $29,323,067 in the same period of 2023, a decrease of approximately 60.4%[121] Debt and Liquidity - The company believes it has ample liquidity to support near-term capital requirements[129] - The total contractual obligations as of September 30, 2024, amounted to $75.2 million, including $49.7 million for 6.00% Notes due 2026 and $25.0 million for 6.50% Convertible Notes due 2029[130] - The company issued $25.0 million in aggregate principal amount of 6.50% Convertible Notes due 2029, with proceeds of $24.3 million received net of underwriting discounts[126] - The company issued an additional $5.0 million in 6.50% Convertible Notes due 2029, bringing the total outstanding amount to $30.0 million[127] Share Repurchase and Distribution - The company repurchased 2,000,000 shares, representing 7.9% of outstanding shares, at a price of $4.70 per share during the Modified Dutch Auction Tender Offer[132] - The Share Repurchase Program was extended until October 31, 2025, with approximately $25.0 million remaining available for repurchase as of November 7, 2024[127] - Total distribution paid to stockholders amounted to $887,240 on August 24, 2016, with $820,753 representing realized gains[140] - The company intends to focus on equity-based investments primarily for capital gains, with distributions expected to be less consistent than other BDCs[140] Management and Regulation - The company operates as an internally managed, non-diversified closed-end management investment company regulated as a business development company (BDC)[108] - The company has internalized its management to align the interests of stockholders with management, eliminating fees under an investment advisory agreement[110] - The company is subject to risks including economic downturns, market volatility, and changes in laws or regulations that could impact its operations and investment activities[107] Changes in Investment Income - Investment income decreased to $888,717 for the three months ended September 30, 2024, down from $1,465,746 for the same period in 2023, representing a decline of approximately 39.4%[117] - For the nine months ended September 30, 2024, investment income decreased to $3,444,161 from $4,137,046 in the same period of 2023, a decline of approximately 16.8%[117] Operating Expenses - Total operating expenses decreased to $4,096,590 for the three months ended September 30, 2024, from $4,134,172 in the same period of 2023, a reduction of about 0.9%[118] - During the nine months ended September 30, 2024, operating expenses, including interest payments, were $13,530,561, compared to $14,832,577 for the same period in 2023[127]