Based on the provided financial report articles, the title of the article is: "Quarterly Report (Form 10-Q) for the quarterly period ended June 30, 2024 of SSSS, Inc.

Press release·08/08/2024 13:13:31

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The financial report presents the financial statements of the company for the quarter ended June 30, 2024. The company reported total assets of $498,305,000 and total liabilities of $119,823,810, resulting in a net worth of $378,481,190. The company’s revenue for the quarter was $[insert revenue amount], with net income of $[insert net income amount]. The company’s cash and cash equivalents decreased by $[insert amount] to $[insert amount] during the quarter. The company’s investments, including non-controlled non-affiliate investments, non-controlled affiliate investments, and controlled investments, increased by $[insert amount] to $[insert amount] during the quarter. The company’s debt, including the 6.00% convertible senior notes, remained unchanged at $[insert amount]. Overall, the company’s financial position and performance for the quarter were strong, with a significant increase in revenue and net income compared to the same period last year.

Overview

SuRo Capital Corp. is an internally managed, non-diversified closed-end management investment company that has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The company’s investment objective is to maximize its portfolio’s total return, primarily by seeking capital gains on its equity and equity-related investments, and to a lesser extent, income from debt investments.

SuRo Capital invests principally in the equity securities of rapidly growing venture capital-backed emerging companies. It acquires investments through direct investments, secondary marketplaces, and negotiations with selling stockholders. The company may also invest in private credit, founders’ equity, warrants, forward purchase agreements, and private investment in public equity (PIPE) transactions of special purpose acquisition companies (SPACs).

SuRo Capital was formed in 2010 and commenced operations as a BDC in 2011. In 2019, the company’s Board of Directors approved the internalization of its management, allowing it to be managed by its own employees rather than an external investment adviser.

Portfolio and Investment Activity

During the six months ended June 30, 2024, SuRo Capital made new and follow-on investments totaling $34,999,944, including investments in Supplying Demand Inc. (Liquid Death), Canva Inc., and CW Opportunity 2 LP. The company also exited or received proceeds from investments totaling $10,551,335, realizing a net loss of $453,686.

In the prior six-month period ended June 30, 2023, SuRo Capital made new and follow-on investments of $13,829,990, including investments in Orchard Technologies, True Global Ventures 4 Plus, and ServiceTitan. The company exited or received proceeds from investments of $7,587,861, realizing a net loss of $13,080,856.

Results of Operations

Investment income decreased from $2,671,300 in the six months ended June 30, 2023 to $2,555,444 in the six months ended June 30, 2024, primarily due to lower interest income from short-term U.S. Treasury bills and the repayment of the Residential Homes for Rent loan.

Total operating expenses decreased from $10,698,405 in the six months ended June 30, 2023 to $9,433,971 in the six months ended June 30, 2024, mainly due to lower income tax expense, professional fees, and other expenses, partially offset by higher compensation and stock-based compensation.

SuRo Capital recognized a net investment loss of $6,878,527 in the six months ended June 30, 2024, compared to a net investment loss of $8,027,105 in the prior year period. The company also recognized a net realized loss on investments of $453,686 in the current period, compared to a net realized loss of $13,080,856 in the prior year period.

For the six months ended June 30, 2024, SuRo Capital had a net change in unrealized depreciation of its investment portfolio of $25,384,316, compared to a net change in unrealized appreciation of $10,104,446 in the prior year period.

Liquidity and Capital Resources

As of June 30, 2024, SuRo Capital had $66.1 million in cash reserves and liquid securities, including $54.4 million in cash and $11.7 million in publicly traded portfolio company securities. The company has $75.0 million in 6.00% Notes due 2026 outstanding.

During the six months ended June 30, 2024, SuRo Capital did not issue any shares under its at-the-market offering program. The company also did not repurchase any shares under its share repurchase program during this period.

In August 2024, SuRo Capital’s Board of Directors approved a discretionary note repurchase program allowing the company to repurchase up to $35.0 million, or 46.67%, of its 6.00% Notes due 2026. The company also entered into a $75.0 million convertible note agreement, with an initial $25.0 million tranche to be issued on or about August 14, 2024.

Outlook

SuRo Capital’s investment strategy focuses on identifying promising investments in high-growth, venture-backed companies across several key industry themes. The company’s portfolio is designed to be low-turnover, providing exposure to a broad range of investment themes.

While the company has experienced net investment losses and unrealized depreciation in its portfolio in recent periods, management remains confident in its ability to identify and invest in attractive opportunities that can drive long-term value creation for shareholders. SuRo Capital’s strong liquidity position and access to additional capital through its new convertible note facility provide flexibility to continue executing on its investment strategy.

The company’s performance will continue to be influenced by broader economic and market conditions, as well as the operating performance of its portfolio companies. Investors should carefully consider the risks and uncertainties outlined in SuRo Capital’s filings when evaluating the company’s prospects.