SuRo Capital(US:SSSS)2025-05-07 13:05Investment Portfolio Performance - The fair value of the investment portfolio as of March 31, 2025, was $213,577,198, compared to $175,015,571 as of March 31, 2024, indicating a year-over-year increase of approximately 22%[248][252]. - Total investment income decreased to $499,094 for the three months ended March 31, 2025, from $1,528,091 for the same period in 2024, representing a decline of about 67%[258][259]. - Net investment loss for the three months ended March 31, 2025, was $(3,661,769), compared to $(3,222,902) for the same period in 2024, reflecting an increase in losses[258]. - The net realized loss on investments for the three months ended March 31, 2025, was $(17,951), compared to a net loss of $(424,074) for the same period in 2024[258]. - The net change in unrealized appreciation of investments for the three months ended March 31, 2025, was $2,888,878, contrasting with a depreciation of $(18,418,370) in the same period in 2024[258]. Investment Strategy and Activities - The company’s investment strategy focuses on non-controlling equity and equity-related investments, primarily in high-growth, venture-backed companies across various sectors[241]. - The company did not exit or receive proceeds from any investments during the three months ended March 31, 2025[250]. - The company is frequently negotiating investments in private companies, subject to closing conditions[298]. - The fair value of investments is determined in good faith by the Board of Directors, which may fluctuate due to inherent uncertainties[300]. Financial Performance and Expenses - Compensation expenses for the three months ended March 31, 2025, were $1,667,835, down from $2,185,318 in the same period in 2024, a decrease of approximately 24%[258]. - Total operating expenses decreased to $4,160,863 for the three months ended March 31, 2025, from $4,750,993 for the same period in 2024, representing a decrease of approximately 12.4%[260]. - Net investment loss for the three months ended March 31, 2025, was $3,661,769, compared to a loss of $3,222,902 for the same period in 2024, indicating an increase in loss of about 13.6%[261]. Cash Reserves and Obligations - Cash reserves decreased to $16,180,542 as of March 31, 2025, down from $20,035,640 at the beginning of the year, primarily due to new investments and operating expenses[269]. - Total cash reserves and liquid securities amounted to $38,518,303 as of March 31, 2025, compared to $37,626,760 as of December 31, 2024, reflecting an increase of approximately 2.4%[267]. - The company has $75.2 million in total contractual obligations as of March 31, 2025, with $39.7 million due for the 6.00% Notes due 2026 and $35.0 million for the 6.50% Convertible Notes due 2029[271]. Share Repurchase and Distributions - No shares were repurchased under the Share Repurchase Program during the three months ended March 31, 2025, with approximately $25.0 million remaining available for repurchase[273]. - The company declared a total distribution of $12.10 per share from its formation through March 31, 2025[287]. - The distribution on May 4, 2021, was $2.50 per share, with 2,335,527 shares issued in lieu of cash, representing approximately 9.6% of outstanding shares prior to the distribution[294]. - The company intends to focus on equity investments primarily for capital gains, with distributions expected to be less consistent than other BDCs[291]. - The company plans to make future distributions in the form of additional shares under its dividend reinvestment plan (DRIP) unless stockholders opt for cash[292]. - All distributions paid from realized gains, with none representing a return of capital[288]. - The company does not anticipate paying distributions on a quarterly basis, expecting to declare and pay at least annually if earnings or realized capital gains are available[291]. Market Risks - The company is subject to market risks, including potential impacts on the valuation of equity investments during periods of capital market disruption[299]. - As of March 31, 2025, all debt investments and outstanding borrowings bore fixed rates of interest[301].