Firsthand Technology Value Fund Announces Second Quarter Financial Results, NAV of $0.15 Per Share

Rhea-AI Summary

Firsthand Technology Value Fund (OTCQB: SVVC) reported its Q2 2024 financial results. The Fund's net assets increased to $1.0 million ($0.15 per share) as of June 30, 2024, compared to $0.2 million ($0.02 per share) on March 31, 2024. The portfolio, valued at $5.7 million ($0.82 per share), includes public and private securities.

Key financial highlights:

• Total investment income: $30,000
• Net investment loss: $0.2 million
• Net realized and unrealized gains: $1.0 million

The Fund's Valuation Committee adjusted fair values of private companies in the portfolio, considering various factors including company performance and market multiples.

Positive

• Net assets increased from $0.2 million to $1.0 million quarter-over-quarter
• Net asset value per share grew from $0.02 to $0.15
• Reported net realized and unrealized gains of $1.0 million

Negative

• Reported a net investment loss of $0.2 million
• Low total investment income of only $30,000
• Total liabilities of $4.68 million significantly exceed net assets of $1.02 million

Insights

Financial Analyst

Firsthand Technology Value Fund's Q2 2024 results reveal a significant improvement in NAV, rising from $0.02 to $0.15 per share. This 650% increase is noteworthy, but the fund's overall financial position remains precarious. With total assets of $5.70 million and liabilities of $4.68 million, the fund's equity cushion is thin. The reported net investment loss of $0.2 million is concerning, although partially offset by $1.0 million in net realized and unrealized gains. The fund's cash position of $0.01 million is alarmingly low, potentially limiting its ability to make new investments or support existing portfolio companies.

Venture Capital Expert

The fund's portfolio valuation of $5.66 million in equity/debt investments suggests a concentrated portfolio with high-risk, potentially illiquid assets. The substantial increase in NAV likely stems from positive revaluations of private holdings, which can be subjective and volatile. The fund's continued efforts to enhance portfolio company performance and seek exit opportunities are important given its financial constraints. However, with cash reserves, the fund's ability to provide follow-on funding to portfolio companies may be restricted, potentially diluting its ownership stakes in future funding rounds.

Market Research Analyst

Firsthand Technology Value Fund's focus on technology and cleantech sectors aligns with current market trends, but its small size and financial limitations may hinder its competitiveness. The fund's transition to OTCQB from a major exchange suggests reduced liquidity and potentially higher risk for investors. The substantial liabilities relative to assets indicate a leveraged position, which could amplify both gains and losses. Investors should closely monitor the fund's ability to generate exits or positive returns from its portfolio companies, as this will be critical for its long-term viability and potential to deliver shareholder value.

SAN JOSE, Calif., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Firsthand Technology Value Fund, Inc. (OTCQB: SVVC) (the “Fund”), a publicly traded venture capital fund that invests in technology and cleantech companies, announced today its financial results for the quarter ended June 30, 2024.

As of June 30, 2024, the Fund’s net assets were approximately $1.0 million, or $0.15 per share, compared with net assets of approximately $0.2 million, or $0.02 per share as of March 31, 2024. As of June 30, 2024, the Fund’s portfolio included public and private securities valued at approximately $5.7 million, or $0.82 per share, which includes approximately $0.00 per share in cash and cash equivalents.

Portfolio Summary (as of 6/30/24)

Investment	Fair Value1,		Fair Value per Share1,2
Equity/Debt Investments	$5.66 million		$0.82
Cash/Cash Equivalents	$0.01 million		$0.00
Other Assets	$0.25 million		$0.00
Total Assets	$5.70 million		$0.83
Total Liabilities	$4.68 million		$0.68
Net Assets	$1.02 million		$0.15
1Numbers may not sum due to rounding. 2Total shares outstanding: 6,893,056.

During the second quarter of 2024, the Valuation Committee, which was composed of independent two 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, the Valuation Committee took into account information from an independent valuation firm and considered 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 quarter ended June 30, 2024, the Fund reported total investment income of approximately $30 thousand. After fees and expenses, including the aforementioned fee waiver, the Fund reported a net investment loss of approximately $0.2 million. The Fund reported net realized and unrealized gains on investments of approximately $1.0 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 was Firsthand Technology Value Fund's (SVVC) net asset value per share as of June 30, 2024?

Firsthand Technology Value Fund's (SVVC) net asset value per share was $0.15 as of June 30, 2024.

How much were Firsthand Technology Value Fund's (SVVC) net realized and unrealized gains for Q2 2024?

Firsthand Technology Value Fund (SVVC) reported net realized and unrealized gains on investments of approximately $1.0 million for Q2 2024.

What was the total value of Firsthand Technology Value Fund's (SVVC) portfolio as of June 30, 2024?

As of June 30, 2024, Firsthand Technology Value Fund's (SVVC) portfolio was valued at approximately $5.7 million, or $0.82 per share.

How did Firsthand Technology Value Fund's (SVVC) net assets change from Q1 to Q2 2024?

Firsthand Technology Value Fund's (SVVC) net assets increased from approximately $0.2 million on March 31, 2024, to approximately $1.0 million on June 30, 2024.