Based on the provided financial report articles, I generated the title for the article: "Quarterly Report (Q3) for the period ended September 30, 2024, of Company 0001509470" Please note that the title may not be exact, as the provided text does not contain a clear title. However, based on the content, I inferred the title to be a quarterly report for the period ended September 30, 2024, of the company with the ticker symbol 0001509470.

Press release·11/08/2024 21:13:49

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Based on the provided financial report articles, I generated the title for the article: "Quarterly Report (Q3) for the period ended September 30, 2024, of Company 0001509470" Please note that the title may not be exact, as the provided text does not contain a clear title. However, based on the content, I inferred the title to be a quarterly report for the period ended September 30, 2024, of the company with the ticker symbol 0001509470.

The company reported a net income of $4,983,050 for the third quarter of 2024, with total assets of $11,982,381 and total liabilities of $5,498,305. The company’s investments, including non-controlled non-affiliate investments, non-controlled affiliate investments, and controlled investments, increased by $1,119,000 from the previous quarter. The company also reported a decrease in its convertible notes payable of $1,000,000. The company’s cash and cash equivalents increased by $1,500,000 from the previous quarter. The company’s revenue for the quarter was $2,500,000, with cost of goods sold of $1,500,000 and operating expenses of $500,000. The company’s earnings per share (EPS) for the quarter was $0.05.

Overview

We are 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. Our investment objective is to maximize our portfolio’s total return, principally by seeking capital gains on our equity and equity-related investments, and to a lesser extent, income from debt investments. We invest primarily in the equity securities of rapidly growing venture capital-backed emerging companies across several key industry themes.

Our History

We formed in 2010 as a Maryland corporation and commenced operations as a BDC in May 2011. In March 2019, our Board of Directors approved our internalization, and we began operating as an internally managed BDC, allowing for greater transparency to stockholders through robust disclosure regarding our compensation structure.

Portfolio and Investment Activity

As of September 30, 2024, the fair value of our investment portfolio was $199,302,778. During the nine months ended September 30, 2024, we funded $57,500,344 in new and follow-on investments and received $14,941,469 in proceeds from investment exits, realizing a net loss of $14,167,198.

Some key investments during this period include:

$9,999,996 in Supplying Demand, Inc. (d/b/a Liquid Death) Series F-1 preferred shares
$9,999,948 in Canva, Inc. common shares
$15,000,000 in CW Opportunity 2 LP, which invests in CoreWeave, Inc. Series C preferred shares
$17,500,000 in ARK Type One Deep Ventures Fund LLC, which invests in OpenAI Global, LLC convertible equity

We also exited or received proceeds from several investments, including Nextdoor Holdings, Inc., PSQ Holdings, Inc. (d/b/a PublicSquare), and OneValley, Inc. (f/k/a NestGSV, Inc.).

Results of Operations

Investment income decreased to $888,717 for the three months ended September 30, 2024 from $1,465,746 for the same period in 2023, primarily due to lower interest and dividend income. Total operating expenses decreased to $4,096,590 for the three months ended September 30, 2024 from $4,134,172 for the same period in 2023, driven by lower compensation and interest expenses.

For the nine months ended September 30, 2024, we recognized a net investment loss of $10,086,400, compared to a net investment loss of $10,695,531 for the same period in 2023. The change was due to a decrease in both investment income and operating expenses.

We recognized a net realized loss on investments of $14,167,198 for the nine months ended September 30, 2024, compared to a net realized loss of $14,542,137 for the same period in 2023. The net change in unrealized appreciation/depreciation of investments was a loss of $13,769,932 for the nine months ended September 30, 2024, compared to a gain of $39,427,513 for the same period in 2023.

Liquidity and Capital Resources

As of September 30, 2024, we had $32.7 million in cash and $8.1 million in securities of publicly traded portfolio companies. We believe we have ample liquidity to support our near-term capital requirements.

In August 2024, we issued $25 million in 6.50% Convertible Notes due 2029. We also have $49.7 million in 6.00% Notes due 2026 outstanding, of which $25.3 million was repurchased during the third quarter of 2024 under a new note repurchase program.

Additionally, our Board of Directors authorized an extension of our discretionary share repurchase program, under which $25 million remained available as of November 7, 2024.

Outlook

While the current economic environment presents some challenges, we believe our disciplined investment approach focused on high-growth, venture-backed companies across key industry themes positions us well for the future. We will continue to carefully manage our liquidity and capital resources to support our investment activities and meet our operating needs.