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Wall Street Journal2024 Annual Financial Report: Assets, Liabilities, and Equity Analysis
2024 Annual Financial Report: Assets, Liabilities, and Equity Analysis
The financial report highlights the company’s strong financial performance in Q1 2024, with significant growth in revenue and net income. The company’s balance sheet remains healthy, with a strong cash position and low debt levels. The report also notes the company’s continued investment in research and development, as well as its commitment to shareholder value through dividend payments and share buybacks. Overall, the financial report paints a positive picture of the company’s financial health and growth prospects.
Company Overview
SuRo Capital Corp. is an internally managed, closed-end investment company focused on venture capital investments. As of March 31, 2024, the total value of SuRo Capital’s investment portfolio was $175 million.
First Quarter 2024 Highlights
- Total investment income was $1.5 million
- Net investment loss was $3.2 million
- Net realized loss on investments was $0.4 million
- Net change in unrealized depreciation was $18.4 million
- Net decrease in net assets from operations was $22.1 million
Investment Portfolio
In the first quarter of 2024, SuRo Capital funded a total of $10 million in new investments, primarily in Supplying Demand Inc. (d/b/a Liquid Death). SuRo Capital received $0.3 million in proceeds from investment exits in the quarter, realizing a net loss of $0.4 million.
Significant changes in the fair value of investments included:
| Portfolio Company | Change in Fair Value (Q1 2024) |
|---|---|
| ServiceTitan Inc. | +$1.4 million |
| FourKites Inc. | +$1.1 million |
| Forge Global Inc. | -$1.7 million |
| Residential Homes for Rent LLC (d/b/a Second Avenue) | -$1.8 million |
| StormWind LLC | -$1.9 million |
| Learneo Inc. (f/k/a Course Hero Inc.) | -$13.0 million |
Financial Results
| Q1 2024 | Q1 2023 | |
|---|---|---|
| Total Investment Income | $1.5 million | $1.3 million |
| Net Investment Loss | $3.2 million | $4.2 million |
| Net Realized Gain/(Loss) on Investments | ($0.4) million | $0.2 million |
| Net Change in Unrealized Appreciation/(Depreciation) of Investments | ($18.4) million | $8.6 million |
| Net Decrease in Net Assets from Operations | ($22.1) million | $4.6 million |
The increase in investment income was primarily driven by higher interest income. The decrease in expenses was mainly due to lower income taxes and professional fees. The net realized loss on investments was attributed to losses from investment exits. The shift to net unrealized depreciation of investments was largely due to negative fair value adjustments, especially for Learneo Inc.
Liquidity and Capital Resources
As of March 31, 2024, SuRo Capital held $93.6 million of cash, cash equivalents, and liquid securities. This includes $50.8 million in cash, $29.6 million in U.S. Treasury Bills, and $13.2 million in unrestricted publicly traded securities.
During the first quarter, cash balances increased by $22.6 million mainly due to investment exits. SuRo Capital continues to believe it has sufficient liquidity to meet near-term needs.
Debt Obligations
As of March 31, 2024, SuRo Capital had $75 million aggregate principal amount of 6.00% Notes due December 30, 2026 outstanding.
Share Repurchases
SuRo Capital did not repurchase any shares under its Share Repurchase Program during the first quarter of 2024. Approximately $20.7 million remains available for future repurchases.
Distributions
No distributions were declared in the first quarter of 2024. SuRo Capital intends to focus on making equity investments from which it will derive capital gains to distribute on an annual basis when available, rather than quarterly distributions.