Firsthand Technology(US:SVVC)2026-03-30 21:34Financial Performance - For the year ended December 31, 2025, the company reported investment income of $13,754, a significant decrease from $109,836 in 2024 and $122,631 in 2023, primarily due to a reduction in interest-bearing notes[186][187][188]. - The net investment loss for the year ended December 31, 2025 was $(1,286,068), compared to a net investment gain of $1,875,422 in 2024, primarily due to the absence of a management fee waiver in 2025[195][209]. - The company recognized net realized losses of $25,942,832 from the sale of investments during the year ended December 31, 2025, which was higher than the $11,686,668 in realized losses in 2024[198][201]. - Operating expenses for the year ended December 31, 2025 totaled approximately $1,114,775, down from $1,183,747 in 2024 and $1,583,768 in 2023, with significant components including professional fees of $810,267[191][192]. Asset Valuation - As of December 31, 2025, net assets totaled approximately $(0.2) million, with a NAV per share of $0.00, indicating a significant decline in asset value[215]. - Total cash reserves and liquid securities decreased approximately 92% in 2025, primarily due to cash needed for operating expenses[213]. - The fair value of the investment portfolio showed a significant decline in the Advanced Materials sector, with a decrease of 71.3% in 2025 compared to a 24.5% increase in 2024[184]. Investment Strategy - The company primarily 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[180]. - The company expects the portion of its portfolio consisting of cash and cash equivalents to decrease, indicating a potential shift in investment strategy[214]. Investment Holdings - The company had investments in public and private securities totaling approximately $0.2 million as of December 31, 2025, including approximately $56 thousand in a money market fund[214]. - As of December 31, 2025, the company held investments in IntraOp consisting of 26,856,187 shares of Series C preferred stock and various convertible notes with a combined aggregate fair value of $1,523[218]. - The investment in Lyncean included 869,792 shares of Series B preferred stock with a combined fair value of $0 as of December 31, 2025[220]. - The investment in Revasum consisted of 39,774,889 shares of CDIs with an aggregate fair value of approximately $0[222]. - The investment in UCT included 1,500,000 shares of common stock with a combined fair value of $167,642 as of December 31, 2025[224]. - The investment in Wrightspeed consisted of 69,102 shares of common stock and 60,733,693 shares of Series AA preferred stock with a fair value of $0[226]. - The company held 56,271 shares of a money market fund with a market value of approximately $56 thousand as of December 31, 2025[229]. Regulatory and Compliance - The company intends to distribute at least 90% of its ordinary income and realized net short-term capital gains annually to qualify as a RIC and avoid corporate-level tax[230]. - 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[249]. - The company has no contractual obligations or off-balance sheet arrangements that require disclosure[231][232]. Going Concern - The Company is insolvent as total liabilities exceed total assets, indicating a material uncertainty regarding its ability to continue as a going concern[255]. - The Company has issued a press release seeking approval to withdraw its BDC election and pursue liquidation[256].