Firsthand Technology Value Fund Announces First Quarter Financial Results, NAV of $11.58 per share

Rhea-AI Summary

Firsthand Technology Value Fund (NASDAQ: SVVC) reported financial results for Q1 2020, highlighting net assets of approximately $79.8 million ($11.58 per share), down from $127.1 million ($17.70 per share) at year-end 2019. The portfolio's value stood at about $77.9 million ($11.30 per share), with cash and equivalents of $0.32 million. The Fund recorded investment income of $772,000 but faced a net realized and unrealized loss of around $45.3 million for the quarter. The Fund aims for long-term capital growth through investments in technology and cleantech sectors.

Positive

• None.

Negative

• Net assets dropped significantly from $127.1 million to $79.8 million.
• Net realized and unrealized losses of approximately $45.3 million for the quarter.

SAN JOSE, Calif., May 11, 2020 (GLOBE NEWSWIRE) -- Firsthand Technology Value Fund, Inc. (NASDAQ: SVVC) (the “Fund”), a publicly traded venture capital fund that invests in technology and cleantech companies, announced today its financial results for the first quarter ended March 31, 2020.

As of March 31, 2020, the Fund’s net assets were approximately $79.8 million, or $11.58 per share, compared with net assets of approximately $127.1 million, or $17.70 per share as of December 31, 2019. As March 31, 2020, the Fund’s portfolio included public and private securities valued at approximately $77.9 million, or $11.30 per share, and approximately $0.05 per share in cash and cash equivalents.

Portfolio Summary (as of 3/31/20)

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Investment	Fair Value1,	Fair Value per Share1,2
Equity/Debt Investments	$77.88 million	$	11.30
Cash/Cash Equivalents	$0.32 million	$	0.05
Other Assets	$6.02 million	$	0.87
Total Assets	$84.22 million	$	12.22
Total Liabilities	$4.38 million	$	0.64
Net Assets	$79.84 million	$	11.58
1 Numbers may not sum due to rounding. 2 Total shares outstanding: 6,893,056.

During the first quarter of 2020, the Valuation Committee, which was composed of four independent directors, adjusted the fair values of the private companies in our portfolio. In arriving at these determinations and consistent with the Fund’s valuation procedures, and ASC 820 (formerly FAS 157), the Valuation Committee took into account many factors, including the performance of the portfolio companies, recent transactions in the companies’ securities, as well as the impact of changes in market multiples within certain sectors.

For the three months ended March 31, 2020, the Fund reported investment income of approximately $772 thousand. The Fund reported net investment income, net of deferred taxes, of approximately $12 thousand. The Fund reported a net realized and unrealized loss on investments, net of deferred taxes, of approximately $45.3 million for the quarter.

Throughout the quarter, the Fund continued its efforts to manage its portfolio prudently, including working with its portfolio companies and their management teams to seek to enhance performance and uncover potential exit opportunities.

About Firsthand Technology Value Fund
Firsthand Technology Value Fund, Inc. is a publicly traded venture capital fund that invests in technology and cleantech companies. More information about the Fund and its holdings can be found online at www.firsthandtvf.com.

The Fund is a non-diversified, closed-end investment company that elected to be treated as a business development company under the Investment Company Act of 1940. The Fund’s investment objective is to seek long-term growth of capital. Under normal circumstances, the Fund will invest at least 80% of its total assets for investment purposes in technology and cleantech companies.  An investment in the Fund involves substantial risks, some of which are highlighted below.  Please see the Fund’s public filings for more information about fees, expenses and risk.  Past investment results do not provide any assurances about future results.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Fund’s historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions, regulatory and legal changes, technology and cleantech industry risk, valuation risk, non-diversification risk, interest rate risk, tax risk, and other risks discussed in the Fund’s filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objectives will be attained. We acknowledge that, notwithstanding the foregoing, the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995 does not apply to investment companies such as us.

Contact:

Phil Mosakowski
Firsthand Capital Management, Inc.
(408) 624-9526
vc@firsthandtvf.com

FAQ

What were the net assets of Firsthand Technology Value Fund (SVVC) as of March 31, 2020?

The net assets of Firsthand Technology Value Fund (SVVC) were approximately $79.8 million as of March 31, 2020.

What was the investment income reported by SVVC for Q1 2020?

SVVC reported an investment income of approximately $772,000 for the first quarter of 2020.

How much did Firsthand Technology Value Fund (SVVC) lose in net realized and unrealized investments during Q1 2020?

The Fund reported a net realized and unrealized loss on investments of approximately $45.3 million for the quarter.

What was the fair value per share of SVVC's portfolio as of March 31, 2020?

The fair value per share of Firsthand Technology Value Fund's portfolio was approximately $11.30 as of March 31, 2020.

What is the primary investment focus of Firsthand Technology Value Fund (SVVC)?

The Fund primarily invests in technology and cleantech companies.