Horizon Technology Finance Corporation
Horizon Technology Finance Corp (Form: 10-Q, Received: 08/02/2016 16:59:24)

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2016
   
  OR
   
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
  FOR THE TRANSITION PERIOD FROM                      TO     

 

 

COMMISSION FILE NUMBER: 814-00802

 

HORIZON TECHNOLOGY FINANCE CORPORATION

(Exact name of registrant as specified in its charter)

 

DELAWARE   27-2114934
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)

 

312 Farmington Avenue    
Farmington, CT   06032
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code (860) 676-8654

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o .

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer” and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer o   Accelerated filer þ   Non-accelerated filer o   Smaller Reporting Company o
        (Do not check if a smaller reporting company)  

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ .

 

As of August 2, 2016, the Registrant had 11,548,564 shares of common stock, $0.001 par value, outstanding. 

 

 

 

 

 

HORIZON TECHNOLOGY FINANCE CORPORATION

 

FORM 10-Q

TABLE OF CONTENTS

 

  Page
PART I  
Item 1. Consolidated Financial Statements 3
     
  Consolidated Statements of Assets and Liabilities as of June 30, 2016 and December 31, 2015 (unaudited) 3
  Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015 (unaudited) 4
  Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2016 and 2015 (unaudited) 5
  Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015 (unaudited) 6
  Consolidated Schedules of Investments as of June 30, 2016 and December 31, 2015 (unaudited) 7
  Notes to the Consolidated Financial Statements (unaudited) 18
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 37
Item 3. Quantitative and Qualitative Disclosures About Market Risk 50
Item 4. Controls and Procedures 51
     
PART II  
Item 1. Legal Proceedings 52
Item 1A. Risk Factors 52
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52
Item 3. Defaults Upon Senior Securities 52
Item 4. Mine Safety Disclosures 52
Item 5. Other Information 52
Item 6. Exhibits 52
  Signatures 53
EX-10.1    
EX-31.1    
EX-31.2    
EX-32.1    
EX-32.2    

 

2

 

 

PART I: FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Statements of Assets and Liabilities (Unaudited)

(Dollars in thousands, except share and per share data)

 

   

June 30,

2016

    December 31,
2015
 
             
Assets                
Non-affiliate investments at fair value (cost of $243,221 and $255,494, respectively) (Note 4)   $ 233,266     $ 250,267  
Investments in money market funds           285  
Cash     16,280       20,765  
Restricted investments in money market funds           1,091  
Interest receivable     8,114       6,258  
Other assets     2,259       2,230  
Total assets   $ 259,919     $ 280,896  
                 
Liabilities                
Borrowings (Note 6)   $ 100,502     $ 114,954  
Distributions payable     3,984       3,980  
Base management fee payable (Note 3)     406       385  
Incentive fee payable (Note 3)     1,027       1,028  
Other accrued expenses     770       798  
Total liabilities     106,689       121,145  
                 
Commitments and Contingencies (Note 7)                
                 
Net assets                
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero
shares issued and outstanding as of June 30, 2016 and December 31, 2015
           
Common stock, par value $0.001 per share, 100,000,000 shares authorized,
11,661,531 and 11,648,594 shares issued and 11,548,149 and 11,535,212 shares outstanding as of June 30, 2016 and December 31, 2015, respectively
    12       12  
Paid-in capital in excess of par     179,833       179,707  
Distributions in excess of net investment income     (1,063 )     (2,006 )
Net unrealized depreciation on investments     (9,955 )     (5,227 )
Net realized loss on investments     (15,597 )     (12,735 )
Total net assets     153,230       159,751  
Total liabilities and net assets   $ 259,919     $ 280,896  
Net asset value per common share   $ 13.27     $ 13.85  

 

See Notes to Consolidated Financial Statements

 

3

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except share and per share data)

 

    For the Three Months Ended     For the Six Months Ended  
    June 30,     June 30,  
    2016     2015     2016     2015  
Investment income                                
Interest income on non-affiliate investments   $ 8,788     $ 6,599     $ 17,790     $ 13,161  
Prepayment fee income on non-affiliate investments     263       208       429       728  
Fee income on non-affiliate investments     41       50       170       234  
Total investment income     9,092       6,857       18,389       14,123  
Expenses                                
Interest expense     1,512       1,263       3,046       2,850  
Base management fee (Note 3)     1,247       1,146       2,531       2,177  
Performance based incentive fee (Note 3)     1,027       722       2,126       1,458  
Administrative fee (Note 3)     275       309       556       577  
Professional fees     343       287       844       718  
General and administrative     261       299       462       559  
Total expenses     4,665       4,026       9,565       8,339  
Management and performance based incentive fees waived (Note 3)           (67 )           (67 )
Net expenses     4,665       3,959       9,565       8,272  
Net investment income before excise tax     4,427       2,898       8,824       5,851  
(Credit) provision for excise tax     (85 )     10       (85 )     20  
Net investment income     4,512       2,888       8,909       5,831  
Net realized and unrealized loss on investments                                
Net realized loss on investments     (876 )     (29 )     (2,862 )     (259 )
Net unrealized (depreciation) appreciation on investments     (3,714 )     (1,114 )     (4,728 )     18  
Net realized and unrealized loss on investments     (4,590 )     (1,143 )     (7,590 )     (241 )
Net (decrease) increase in net assets resulting from operations   $ (78 )   $ 1,745     $ 1,319     $ 5,590  
Net investment income per common share   $ 0.39     $ 0.25     $ 0.77     $ 0.54  
Net (decrease) increase in net assets per common share   $ (0.01 )   $ 0.15     $ 0.11     $ 0.52  
Distributions declared per share   $ 0.345     $ 0.345     $ 0.69     $ 0.69  
Weighted average shares outstanding     11,544,412       11,632,724       11,541,208       10,725,004  

 

See Notes to Consolidated Financial Statements

 

4

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Statements of Changes in Net Assets (Unaudited)

(Dollars in thousands, except share data)

 

    Common Stock     Paid-In
Capital in
Excess of
    Distributions
in Excess of
Net
Investment
    Net Unrealized
Depreciation
on
    Net Realized
Loss on
    Total Net  
    Shares     Amount     Par     Income     Investments     Investments     Assets  
Balance at December 31, 2014     9,628,124     $ 10     $ 155,240     $ (1,102 )   $ (4,737 )   $ (11,163 )   $ 138,248  
Issuance of common stock, net of offering costs     2,000,000       2       26,657                         26,659  
Net increase in net assets resulting from operations                       5,831       18       (259 )     5,590  
Issuance of common stock under dividend reinvestment plan     7,356             102                         102  
Distributions declared                       (7,797 )                 (7,797 )
Reclassification of permanent tax differences (Note 2)                 (971 )     893             78        
Balance at June 30, 2015     11,635,480     $ 12     $ 181,028     $ (2,175 )   $ (4,719 )   $ (11,344 )   $ 162,802  
                                                         
Balance at December 31, 2015     11,535,212     $ 12     $ 179,707     $ (2,006 )   $ (5,227 )   $ (12,735 )   $ 159,751  
Net increase in net assets resulting from operations                       8,909       (4,728 )     (2,862 )     1,319  
Issuance of common stock under dividend reinvestment plan     12,937             142                         142  
Repurchases of common stock                 (16 )                       (16 )
Distributions declared                       (7,966 )                 (7,966 )
Balance at June 30, 2016     11,548,149     $ 12     $ 179,833     $ (1,063 )   $ (9,955 )   $ (15,597 )   $ 153,230  

 

See Notes to Consolidated Financial Statements

 

5

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

 

    For the Six Months Ended  
    June 30,  
    2016     2015  
Cash flows from operating activities:                
Net increase in net assets resulting from operations   $ 1,319     $ 5,590  
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:                
Amortization of debt issuance costs     306       523  
Net realized loss on investments     2,862       259  
Net unrealized depreciation (appreciation) on investments     4,728       (18 )
Purchase of investments     (31,687 )     (71,933 )
Principal payments received on investments     40,466       36,577  
Proceeds from sale of investments     935        
Changes in assets and liabilities:                
Net decrease (increase) in investments in money market funds     285       (307 )
Net decrease in restricted investments in money market funds     1,091       1,064  
Increase in interest receivable     (372 )     (194 )
Increase in end-of-term payments     (1,510 )     (673 )
(Decrease) increase in unearned income     (278 )     97  
(Increase) decrease in other assets     (19 )     431  
(Decrease) increase in other accrued expenses     (28 )     38  
Increase in base management fee payable     21       11  
Decrease in incentive fee payable     (1 )     (77 )
Net cash provided by (used in) operating activities     18,118       (28,612 )
Cash flows from financing activities:                
Proceeds from issuance of common stock, net of offering costs           26,659  
Repayment of Asset-Backed Notes     (14,546 )     (14,191 )
Advances on credit facility           26,000  
Distributions paid     (7,820 )     (7,003 )
Repurchase of common stock     (16 )      
Debt issuance costs     (221 )      
Net cash (used in) provided by financing activities     (22,603 )     31,465  
Net (decrease) increase in cash     (4,485 )     2,853  
Cash:                
Beginning of period     20,765       8,417  
End of period   $ 16,280     $ 11,270  
Supplemental disclosure of cash flow information:                
Cash paid for interest   $ 2,722     $ 2,317  
Supplemental non-cash investing and financing activities:                
Warrant investments received and recorded as unearned income   $ 149     $ 485  
Distributions payable   $ 3,984     $ 4,014  
End-of-term payments receivable   $ 6,570     $ 4,458  

 

See Notes to Consolidated Financial Statements

 

6

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

June 30, 2016

(Dollars in thousands)

 

            Principal     Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Amount     Investments (6)     Value  
Debt Investments — 148.1% (8)                        
Debt Investments — Life Science — 33.0% (8)                        
Argos Therapeutics, Inc. (2)(5)   Biotechnology   Term Loan (9.25% cash (Libor + 8.75%; Floor 9.25%;   $ 5,000     $ 4,953     $ 4,953  
        Ceiling 10.75%), 5.00% ETP, Due 10/1/18)                        
        Term Loan (9.25% cash (Libor + 8.75%; Floor 9.25%;     5,000       4,962       4,962  
        Ceiling 10.75%), 5.00% ETP, Due 3/1/19)                        
New Haven Pharmaceuticals, Inc. (2)(11)   Biotechnology   Term Loan (11.50% cash (Libor + 11.00%; Floor     1,301       1,293       1,293  
        11.50%), 11.42% ETP, Due 3/1/19)                        
        Term Loan (11.50% cash (Libor + 11.00%; Floor     434       431       431  
        11.50%), 11.42% ETP, Due 3/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     2,000       1,988       1,988  
        10.50%), 6.10% ETP, Due 3/1/19)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor     6,265       6,198       6,198  
        10.00%), 4.00% ETP, Due 4/1/19)                        
Palatin Technologies, Inc. (2)(5)   Biotechnology   Term Loan (9.00% cash (Libor + 8.50%; Floor     5,000       4,950       4,950  
        9.00%), 5.00% ETP, Due 1/1/19)                        
        Term Loan (9.00% cash (Libor + 8.50%; Floor     5,000       4,946       4,946  
        9.00%), 5.00% ETP, Due 8/1/19)                        
Sample6, Inc. (2)   Biotechnology   Term Loan (9.50% cash (Libor + 9.00%; Floor     1,361       1,357       1,357  
        9.50%; Ceiling 11.00%), 4.00% ETP, Due 4/1/18)                        
        Term Loan (9.50% cash (Libor + 9.00%; Floor     827       823       823  
        9.50%; Ceiling 11.00%), 4.00% ETP, Due 4/1/18)                        
        Term Loan (9.50% cash (Libor + 9.00%; Floor     2,500       2,485       2,485  
        9.50%; Ceiling 11.00%), 4.00% ETP, Due 4/1/18)                        
Lantos Technologies, Inc. (2)   Medical Device   Term Loan (11.50% cash (Libor + 10.50%; Floor     2,917       2,881       2,881  
        11.50%), 5.00% ETP, Due 2/1/18)                        
Mederi Therapeutics, Inc. (2)   Medical Device   Term Loan (12.29% cash (Libor + 11.82%), 4.00% ETP,     2,121       2,105       2,105  
        Due 7/1/17)                        
        Term Loan (12.29% cash (Libor + 11.82%), 4.00% ETP,     2,121       2,105       2,105  
        Due 7/1/17)                        
NinePoint Medical, Inc. (2)   Medical Device   Term Loan (9.25% cash (Libor + 8.75%; Floor     5,000       4,952       4,952  
        9.25%), 4.50% ETP, Due 3/1/19)                        
        Term Loan (9.25% cash (Libor + 8.75%; Floor     2,500       2,470       2,470  
        9.25%), 4.50% ETP, Due 3/1/19)                        
Tryton Medical, Inc. (2)   Medical Device   Term Loan (10.66% cash (Prime + 7.16%), 2.50% ETP,     1,688       1,685       1,685  
        Due 9/1/16)                        
Total Debt Investments — Life Science                     50,584       50,584  
Debt Investments — Technology — 83.8% (8)                                
Ekahau, Inc. (2)   Communications   Term Loan (11.75% cash, 2.50% ETP, Due 2/1/17)     390       388       388  
        Term Loan (11.75% cash, 2.50% ETP, Due 2/1/17)     130       130       130  
mBlox, Inc. (2)   Communications   Term Loan (11.50% cash (Libor + 11.00%; Floor     4,464       4,446       4,446  
        11.50%; Ceiling 13.00%), 3.40% ETP, Due 7/1/18)                        
        Term Loan (11.50% cash (Libor + 11.00%; Floor     4,464       4,446       4,446  
        11.50%; Ceiling 13.00%), 3.40% ETP, Due 7/1/18)                        
Additech, Inc. (2)   Consumer-related Technologies   Term Loan (11.75% cash (Libor + 11.25%; Floor     2,083       2,060       2,060  
        11.75%; Ceiling 13.25%), 4.00% ETP, Due 7/1/18)                        
        Term Loan (11.75% cash (Libor + 11.25%; Floor     2,500       2,470       2,470  
        11.75%; Ceiling 13.25%), 4.00% ETP, Due 1/1/19)                        
Gwynnie Bee, Inc. (2)   Consumer-related Technologies   Term Loan (11.00% cash (Libor + 10.50%; Floor     1,067       1,051       1,051  
        11.00%; Ceiling 12.50%), 2.00% ETP, Due 11/1/17)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     633       620       620  
        11.00%; Ceiling 12.50%), 2.00% ETP, Due 2/1/18)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     700       689       689  
        11.00%; Ceiling 12.50%), 2.00% ETP, Due 4/1/18)                        
Rhapsody International, Inc. (2)   Consumer-related Technologies   Term Loan (11.00% cash (Libor + 10.50%; Floor     7,500       7,306       7,306  
        11.00%), 3.00% ETP, Due 10/1/19)                        
SavingStar, Inc. (2)   Consumer-related Technologies   Term Loan (10.90% cash (Libor + 10.40%; Floor     3,000       2,952       2,952  
        10.90%), 3.00% ETP, Due 6/1/19)                        
        Term Loan (10.90% cash (Libor + 10.40%; Floor     2,000       1,960       1,960  
        10.90%), 3.00% ETP, Due 3/1/20)                        
MediaBrix, Inc. (2)   Internet and Media   Term Loan (11.50% cash (Libor + 11.00%; Floor     4,000       3,960       3,960  
        11.50%), 3.00% ETP, Due 1/1/20)                        
Zinio Holdings, LLC (2)   Internet and Media   Term Loan (11.75% cash (Libor + 11.25%; Floor     4,000       3,962       3,962  
        11.75%), 4.00% ETP, Due 2/1/20)                        

 

See Notes to Consolidated Financial Statements

 

7

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

June 30, 2016

(Dollars in thousands)

 

            Principal     Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Amount     Investments (6)     Value  
The NanoSteel Company, Inc. (2)   Materials   Term Loan (10.00% cash (Libor + 9.50%; Floor     5,000       4,928       4,928  
        10.00%), 5.00% ETP, Due 7/1/19)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor     2,500       2,464       2,464  
        10.00%), 5.00% ETP, Due 7/1/19)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor     2,500       2,458       2,458  
        10.00%), 5.00% ETP, Due 1/1/20)                        
Nanocomp Technologies, Inc. (2)   Networking   Term Loan (11.50% cash, 3.00% ETP, Due 11/1/17)     524       520       520  
        Term Loan (11.50% cash (Libor + 11.00%; Floor     3,000       2,944       2,944  
        11.50%), 3.00% ETP, Due 4/1/20)                        
Powerhouse Dynamics, Inc. (2)   Power Management   Term Loan (11.20% cash (Libor + 10.70%; Floor     2,500       2,463       2,463  
        11.20%), 3.00% ETP, Due 3/1/19)                        
Avalanche Technology, Inc. (2)   Semiconductors   Term Loan (10.00% cash (Libor + 9.25%; Floor 10.00%;     1,044       1,041       1,041  
        Ceiling 11.75%), 2.40% ETP, Due 4/1/17)                        
        Term Loan (10.00% cash (Libor + 9.25%; Floor 10.00%;     1,700       1,695       1,695  
        Ceiling 11.75%), 2.40% ETP, Due 10/1/18)                        
        Term Loan (10.00% cash (Libor + 9.25%; Floor 10.00%;     1,905       1,867       1,867  
        Ceiling 11.75%), 2.00% ETP, Due 2/1/19)                        
InVisage Technologies, Inc. (2)   Semiconductors   Term Loan (12.00% cash (Libor + 11.50%; Floor     1,955       1,913       1,913  
        12.00%; Ceiling 14.00%), 2.50% ETP, Due 12/31/16)                        
        Term Loan (12.00% cash (Libor + 11.50%; Floor     822       811       811  
        12.00%; Ceiling 14.00%), 2.50% ETP, Due 12/31/16)                        
Luxtera, Inc. (2)   Semiconductors   Term Loan (10.25% cash (Libor + 9.75%; Floor 10.25%;     1,140       1,126       1,126  
        Ceiling 12.25%), 13.00% ETP, Due 7/1/17)                        
        Term Loan (10.25% cash (Libor + 9.75%; Floor 10.25%;     636       634       634  
        Ceiling 12.25%), 13.00% ETP, Due 7/1/17)                        
        Term Loan (9.00% cash (Libor + 8.50%; Floor 9.00%),     833       829       829  
        4.50% ETP, Due 12/1/18)                        
        Term Loan (9.00% cash (Libor + 8.50%; Floor 9.00%),     833       828       828  
        4.50% ETP, Due 12/1/18)                        
        Term Loan (9.50% cash (Libor + 9.00%; Floor 9.50%),     2,000       1,989       1,989  
        4.50% ETP, Due 11/1/19)                        
Xtera Communications, Inc. (5)   Semiconductors   Term Loan (12.50% cash, 17.50% ETP, Due 7/31/16)     3,056       3,047       3,047  
        Term Loan (12.50% cash, 17.50% ETP, Due 7/31/16)     849       847       847  
Bridge2 Solutions, Inc.   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     4,000       3,971       3,971  
        11.50%; Ceiling 14.50%), 2.00% ETP, Due 7/1/19)                        
        Term Loan (11.50% cash (Libor + 11.00%; Floor     1,000       996       996  
        11.50%; Ceiling 14.50%), 2.00% ETP, Due 1/1/20)                        
ControlScan, Inc. (2)   Software   Term Loan (10.70% cash (Libor + 10.25%),     4,500       4,406       4,406  
        3.00% ETP, Due 7/1/20)                        
Crowdstar, Inc. (2)   Software   Term Loan (10.75% cash (Libor + 10.25%; Floor     1,636       1,616       1,616  
        10.75%), 3.00% ETP, Due 9/1/18)                        
Decisyon, Inc. (2)   Software   Term Loan (12.78% cash (Libor + 12.308%; Floor     1,523       1,520       1,434  
        12.50%), 6.50% ETP, Due 10/1/17)                        
        Term Loan (12.78% cash (Libor + 12.308%; Floor     833       703       663  
        12.50%), 6.50% ETP, Due 1/1/18)                        
Digital Signal Corporation   Software   Term Loan (10.72% cash (Libor + 10.25%; Floor     1,500       1,463       1,214  
        10.43%), 5.00% ETP, Due 7/1/19)                        
        Term Loan (10.72% cash (Libor + 10.25%; Floor     1,500       1,463       1,214  
        10.43%), 5.00% ETP, Due 7/1/19)                        
Education Elements, Inc. (2)   Software   Term Loan (10.50% cash (Libor + 10.00%; Floor     2,000       1,973       1,973  
        10.50%), 4.00% ETP, Due 1/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     1,500       1,474       1,474  
        10.50%), 4.00% ETP, Due 8/1/19)                        
Netuitive, Inc.   Software   Term Loan (12.72% cash (Libor + 12.25%; Floor     663       662       662  
        12.50%), 3.33% ETP, Due 9/1/17)                        
Nomi Corporation (11)   Software   Term Loan (10.62% cash (Libor + 10.15%; Floor     3,184       3,148       850  
        10.35%), 2.00% ETP, Due 1/1/20)                        
        Term Loan (10.62% cash (Libor + 10.15%; Floor     3,184       3,148       850  
        10.35%), 2.00% ETP, Due 1/1/20)                        
ScoreBig, Inc. (2)   Software   Term Loan (10.50% cash (Libor + 10.00%; Floor     3,403       3,327       3,327  
        10.50%), 4.00% ETP, Due 4/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     3,403       3,357       3,357  
        10.50%), 4.00% ETP, Due 4/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     2,000       1,948       1,948  

 

See Notes to Consolidated Financial Statements

 

8

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

June 30, 2016

(Dollars in thousands)

 

            Principal     Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Amount     Investments (6)     Value  
        10.50%), 4.00% ETP, Due 3/1/20)                        
SIGNiX, Inc. (2)   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     2,600       2,524       2,235  
        11.50%), Due 8/1/18)                        
SilkRoad Technology, Inc. (2)   Software   Term Loan (10.85% cash (Libor + 10.35%; Floor     7,500       7,445       7,445  
        10.85%; Ceiling 12.85%), 3.00% ETP, Due 6/1/19)                        
Skyword, Inc.   Software   Term Loan (11.45% cash (Libor + 10.95%; Floor     4,000       3,934       3,934  
        11.45%), 3.00% ETP, Due 8/1/19)                        
Social Intelligence Corp. (2)   Software   Term Loan (11.00% cash (Libor + 10.50%; Floor     484       473       467  
        11.00%; Ceiling 13.00%), 3.50% ETP, Due 12/1/17)                        
Sys-Tech Solutions, Inc. (2)   Software   Term Loan (11.65% cash (Libor + 11.15%; Floor     4,000       3,976       3,976  
        11.65%; Ceiling 12.65%), 4.50% ETP, Due 3/1/18)                        
        Term Loan (11.65% cash (Libor + 11.15%; Floor     3,667       3,640       3,640  
        11.65%; Ceiling 12.65%), 9.00% ETP, Due 5/1/18)                        
VBrick Systems, Inc. (2)   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     1,300       1,291       1,291  
        11.50%; Ceiling 13.50%), 5.00% ETP, Due 7/1/17)                        
Vidsys, Inc. (2)   Software   Term Loan (13.00% cash, 7.58% ETP, Due 12/1/17)     2,770       2,770       2,770  
xTech Holdings, Inc. (2)   Software   Term Loan (11.00% cash (Libor + 10.50%; Floor     1,833       1,808       1,808  
        11.00%), 3.00% ETP, Due 4/1/19)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     2,000       1,966       1,966  
        11.00%), 3.00% ETP, Due 3/1/20)                        
Total Debt Investments — Technology                     133,846       128,331  
Debt Investments — Cleantech — 6.1% (8)                                
Renmatix, Inc. (2)   Alternative Energy   Term Loan (10.25% cash, Due 10/1/16)     684       684       684  
Rypos, Inc. (2)   Energy Efficiency   Term Loan (12.02% cash, 4.25% ETP, Due 6/1/17)     1,995       1,978       1,978  
        Term Loan (12.02% cash, 4.25% ETP, Due 1/1/18)     852       841       841  
Lehigh Technologies, Inc. (2)   Waste Recycling   Term Loan (10.19% cash (Libor + 9.72%), 6.75% ETP,     3,000       2,964       2,964  
        Due 8/1/19)                        
        Term Loan (10.19% cash (Libor + 9.72%), 6.75% ETP,     3,000       2,978       2,978  
        Due 8/1/19)                        
Total Debt Investments — Cleantech                     9,445       9,445  
Debt Investments — Healthcare information and services — 25.2% (8)                                
Interleukin Genetics, Inc. (2)(5)   Diagnostics   Term Loan (9.00% cash (Libor + 8.50%; Floor 9.00%)     4,500       4,403       4,156  
        4.50% ETP, Due 10/1/18)                        
LifePrint Group, Inc. (2)   Diagnostics   Term Loan (11.00% cash (Libor + 10.50%; Floor     1,800       1,775       1,775  
        11.00%; Ceiling 12.50%), 3.00% ETP, Due 1/1/18)                        
Watermark Medical, Inc. (2)   Other Healthcare   Term Loan (10.00% cash (Libor + 9.50%; Floor 10.00%;     3,208       3,203       3,203  
        Ceiling 11.00%); 4.00% ETP, Due 4/1/18)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor 10.00%;     3,208       3,203       3,203  
        Ceiling 11.00%); 4.00% ETP, Due 4/1/18)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor 10.00%;     1,250       1,248       1,248  
        Ceiling 11.00%); 4.00% ETP, Due 4/1/18)                        
MedAvante, Inc. (2)   Software   Term Loan (9.75% cash (Libor + 9.25%; Floor     3,000       2,964       2,964  
        9.75%), 4.00% ETP, Due 1/1/19)                        
        Term Loan (9.75% cash (Libor + 9.25%; Floor     3,000       2,964       2,964  
        9.75%), 4.00% ETP, Due 1/1/19)                        
        Term Loan (9.75% cash (Libor + 9.25%; Floor     4,000       3,943       3,943  
        9.75%), 4.00% ETP, Due 7/1/19)                        
Medsphere Systems Corporation (2)   Software   Term Loan (10.50% cash (Libor + 10.00%; Floor     5,000       4,933       4,933  
        10.50%), 7.00% ETP, Due 7/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     2,500       2,466       2,466  
        10.50%), 7.00% ETP, Due 7/1/19)                        
Recondo Technology, Inc. (2)   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     1,038       1,035       1,035  
        11.50%), 6.60% ETP, Due 12/1/17)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     1,875       1,870       1,870  
        11.00%), 4.50% ETP, Due 12/1/17)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     1,875       1,872       1,872  
        10.50%), 2.75% ETP, Due 12/1/17)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     3,000       2,971       2,971  
        10.50%), 2.50% ETP, Due 1/1/19)                        
Total Debt Investments — Healthcare information and services                     38,850       38,603  
Total Debt Investments                     232,725       226,963  

 

See Notes to Consolidated Financial Statements

 

9

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

June 30, 2016

(Dollars in thousands)

 

            Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Investments (6)     Value  
Warrant Investments — 3.3% (8)                        
Warrants — Life Science — 0.2% (8)                        
ACT Biotech Corporation   Biotechnology   1,521,820 Preferred Stock Warrants     83        
Argos Therapeutics, Inc. (2)(5)   Biotechnology   33,112 Common Stock Warrants     33       4  
Celsion Corporation (5)   Biotechnology   5,708 Common Stock Warrants     15        
Inotek Pharmaceuticals Corporation (5)   Biotechnology   28,204 Common Stock Warrants     17       43  
New Haven Pharmaceuticals, Inc. (2)   Biotechnology   103,982 Preferred Stock Warrants     88       1  
Nivalis Therapeutics, Inc. (5)   Biotechnology   18,534 Common Stock Warrants     122        
Ocera Therapeutics, Inc. (2)(5)   Biotechnology   6,491 Common Stock Warrants     6        
Palatin Technologies, Inc. (2)(5)   Biotechnology   608,058 Common Stock Warrants     51        
Revance Therapeutics, Inc. (5)   Biotechnology   34,377 Common Stock Warrants     68       47  
Sample6, Inc. (2)   Biotechnology   351,018 Preferred Stock Warrants     45       30  
Sunesis Pharmaceuticals, Inc. (5)   Biotechnology   12,302 Common Stock Warrants     5        
AccuVein Inc. (2)   Medical Device   75,769 Preferred Stock Warrants     24       28  
Direct Flow Medical, Inc.   Medical Device   176,922 Preferred Stock Warrants     144        
EnteroMedics, Inc. (5)   Medical Device   9,402 Common Stock Warrants     347        
IntegenX, Inc. (2)   Medical Device   170,646 Preferred Stock Warrants     34       25  
Lantos Technologies, Inc. (2)   Medical Device   1,287,817 Preferred Stock Warrants     38       40  
Mederi Therapeutics, Inc. (2)   Medical Device   248,736 Preferred Stock Warrants     26       38  
Mitralign, Inc. (2)   Medical Device   641,909 Preferred Stock Warrants     52       36  
NinePoint Medical, Inc. (2)   Medical Device   566,038 Preferred Stock Warrants     33       32  
OraMetrix, Inc. (2)   Medical Device   812,348 Preferred Stock Warrants     78        
Tryton Medical, Inc. (2)   Medical Device   122,362 Preferred Stock Warrants     15       10  
ViOptix, Inc.   Medical Device   375,763 Preferred Stock Warrants     13        
Total Warrants — Life Science             1,337       334  
Warrants — Technology — 2.5% (8)                        
Ekahau, Inc. (2)   Communications   978,261 Preferred Stock Warrants     33       19  
OpenPeak, Inc.   Communications   18,997 Common Stock Warrants     89        
Additech, Inc. (2)   Consumer-related Technologies   150,000 Preferred Stock Warrants     33       26  
Everyday Health, Inc. (5)   Consumer-related Technologies   43,783 Common Stock Warrants     69       8  
Gwynnie Bee, Inc. (2)   Consumer-related Technologies   268,591 Preferred Stock Warrants     68       689  
If(we), Inc.   Consumer-related Technologies   190,868 Preferred Stock Warrants     27       61  
Rhapsody International Inc. (2)   Consumer-related Technologies   852,273 Common Stock Warrants     164       146  
SavingStar, Inc. (2)   Consumer-related Technologies   98,860 Preferred Stock Warrants     59       57  
XIOtech, Inc.   Data Storage   2,217,979 Preferred Stock Warrants     22        
SimpleTuition, Inc.   Internet and media   189,573 Preferred Stock Warrants     63       64  
The NanoSteel Company, Inc. (2)   Materials   147,424 Preferred Stock Warrants     93       88  
IntelePeer, Inc.   Networking   141,549 Common Stock Warrants     39       26  
Nanocomp Technologies, Inc. (2)   Networking   681,819 Preferred Stock Warrants     54       48  
Aquion Energy, Inc.   Power Management   115,051 Preferred Stock Warrants     7       60  
Powerhouse Dynamics, Inc. (2)   Power Management   290,698 Preferred Stock Warrants     28       27  
Avalanche Technology, Inc. (2)   Semiconductors   202,602 Preferred Stock Warrants     101       41  
eASIC Corporation (2)   Semiconductors   40,445 Preferred Stock Warrants     25       27  
InVisage Technologies, Inc. (2)   Semiconductors   395,009 Preferred Stock Warrants     48       43  
Kaminario, Inc.   Semiconductors   1,087,203 Preferred Stock Warrants     59       61  
Luxtera, Inc.(2)   Semiconductors   2,508,671 Preferred Stock Warrants     49       100  
Soraa, Inc. (2)   Semiconductors   180,000 Preferred Stock Warrants     80       411  
Xtera Communications, Inc. (5)   Semiconductors   37,831 Common Stock Warrants     205        
Bolt Solutions Inc. (2)   Software   202,892 Preferred Stock Warrants     113       109  
Bridge2 Solutions, Inc.   Software   75,458 Common Stock Warrants     18       333  
Clarabridge, Inc.   Software   53,486 Preferred Stock Warrants     14       81  
ControlScan, Inc. (2)   Software   2,295,918 Preferred Stock Warrants     19       19  
Crowdstar, Inc. (2)   Software   75,428 Preferred Stock Warrants     14       11  
Decisyon, Inc. (2)   Software   82,967 Common Stock Warrants     46        
Digital Signal Corporation   Software   85,308 Common Stock Warrants     32        
Education Elements, Inc. (2)   Software   238,122 Preferred Stock Warrants     28       22  
Lotame Solutions, Inc. (2)   Software   288,115 Preferred Stock Warrants     22       267  
Netuitive, Inc.   Software   41,569 Common Stock Warrants     48        
Nomi Corporation   Software   2,535,864 Preferred Stock Warrants            
Riv Data Corp. (2)   Software   237,361 Preferred Stock Warrants     12       10  
ScoreBig, Inc. (2)   Software   879,014 Preferred Stock Warrants     88       45  
SIGNiX, Inc. (2)   Software   72,166 Preferred Stock Warrants     88       85  
Skyword, Inc.   Software   301,056 Preferred Stock Warrants     48       46  
SpringCM, Inc. (2)   Software   2,385,686 Preferred Stock Warrants     55       118  

 

See Notes to Consolidated Financial Statements

 

10

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

June 30, 2016

(Dollars in thousands)

 

            Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Investments (6)     Value  
Sys-Tech Solutions, Inc.   Software   375,000 Preferred Stock Warrants     242       555  
Vidsys, Inc.   Software   85,399 Preferred Stock Warrants     23       21  
Visage Mobile, Inc.   Software   1,692,047 Preferred Stock Warrants     19        
xTech Holdings, Inc. (2)   Software   158,730 Preferred Stock Warrants     43       43  
Total Warrants — Technology             2,387       3,768  
Warrants — Cleantech — 0.1% (8)                        
Renmatix, Inc.   Alternative Energy   53,022 Preferred Stock Warrants     68        
Semprius, Inc.   Alternative Energy   519,981 Preferred Stock Warrants     25       20  
Rypos, Inc. (2)   Energy Efficiency   5,627 Preferred Stock Warrants     44       21  
Tigo Energy, Inc. (2)   Energy Efficiency   804,604 Preferred Stock Warrants     100       108  
Lehigh Technologies, Inc. (2)   Waste Recycling   272,727 Preferred Stock Warrants     33       32  
Total Warrants — Cleantech             270       181  
Warrants — Healthcare information and services — 0.5% (8)                        
Accumetrics, Inc.   Diagnostics   100,928 Preferred Stock Warrants     107       63  
Candescent Health, Inc. (2)   Diagnostics   519,991 Preferred Stock Warrants     378        
Helomics Corporation   Diagnostics   13,461 Common Stock Warrants     73        
Interleukin Genetics, Inc. (2)(5)   Diagnostics   2,492,523 Common Stock Warrants     112       88  
LifePrint Group, Inc. (2)   Diagnostics   49,000 Preferred Stock Warrants     29       1  
ProterixBio, Inc. (2)   Diagnostics   3,156 Common Stock Warrants     54        
Singulex, Inc.   Other Healthcare   293,632 Preferred Stock Warrants     44       44  
Verity Solutions Group, Inc.   Other Healthcare   300,360 Preferred Stock Warrants     100       35  
Watermark Medical, Inc. (2)   Other Healthcare   27,373 Preferred Stock Warrants     74       61  
MedAvante, Inc. (2)   Software   114,285 Preferred Stock Warrants     66       64  
Medsphere Systems Corporation (2)   Software   7,097,791 Preferred Stock Warrants     60       194  
Recondo Technology, Inc. (2)   Software   556,796 Preferred Stock Warrants     95       193  
Total Warrants — Healthcare information and services             1,192       743  
Total Warrants             5,186       5,026  
                         
Other Investments — 0.4% (8)                        
ZetrOZ, Inc.   Medical Device   Royalty Agreement     375       400  
Vette Technology, LLC   Data Storage   Royalty Agreement Due 4/18/2019     4,375       200  
Total Other Investments             4,750       600  
Equity — 0.4% (8)                        
Insmed Incorporated (5)   Biotechnology   33,208 Common Stock     238       328  
Revance Therapeutics, Inc.(5)   Biotechnology   4,861 Common Stock     73       66  
Sunesis Pharmaceuticals, Inc. (5)   Biotechnology   78,493 Common Stock     83       43  
SnagAJob.com, Inc.   Consumer-related Technologies   82,974 Common Stock     9       83  
Decisyon, Inc.   Software   3,573,173 Common Stock     157       157  
Total Equity             560       677  
Total Portfolio Investment Assets — 152.2%           $ 243,221     $ 233,266  

_____________________________

(1) All investments of the Company are in entities which are organized under the laws of the United States and have a principal place of business in the United States.
   
(2) Has been pledged as collateral under the Key Facility.
   
(3) All investments are less than 5% ownership of the class and ownership of the portfolio company.
   
(4) All interest is payable in cash due monthly in arrears, unless otherwise indicated, and applies only to the Company’s debt investments. Interest rate is the annual interest rate on the debt investment and does not include end-of-term payments (“ETPs”) and any additional fees related to the investments, such as deferred interest, commitment fees or prepayment fees. All debt investments are at fixed rates for the term of the debt investment, unless otherwise indicated. Debt investments based on LIBOR are based on one-month LIBOR. For each debt investment, the current interest rate in effect as of June 30, 2016 is provided.
   
(5) Portfolio company is a public company.
   
(6) For debt investments, represents principal balance less unearned income.
   
(7) Warrants, Equity and Other Investments are non-income producing.
   
(8) Value as a percent of net assets.
   
(9) The Company did not have any non-qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), as of June 30, 2016. Under the 1940 Act, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets.

 

(10)

ETPs are contractual fixed-interest payments due in cash at the maturity date of the applicable debt investment, including upon any prepayment, and are a fixed percentage of the original principal balance of the debt investments unless otherwise noted. Interest will accrue during the life of the debt investment on each ETP and will be recognized as non-cash income until it is actually paid. Therefore, a portion of the incentive fee the Company may pay its Advisor will be based on income that the Company has not yet received in cash.

   
(11) Debt investment is on non-accrual status at June 30, 2016.

 

See Notes to Consolidated Financial Statements

 

11

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2015

(Dollars in thousands)

 

            Principal     Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Amount     Investments (6)     Value  
Debt Investments — 151.6 % (8)                        
Debt Investments — Life Science — 36.6% (8)                        
Argos Therapeutics, Inc. (2)(5)   Biotechnology   Term Loan (9.25% cash (Libor + 8.75%; Floor 9.25%;   $ 5,000     $ 4,944     $ 4,944  
        Ceiling 10.75%), 5.00% ETP, Due 10/1/18)                        
        Term Loan (9.25% cash (Libor + 8.75%; Floor 9.25%;     5,000       4,954       4,954  
        Ceiling 10.75%), 5.00% ETP, Due 3/1/19)                        
New Haven Pharmaceuticals, Inc. (2)   Biotechnology   Term Loan (11.50% cash (Libor + 11.00%; Floor     1,301       1,293       1,293  
        11.50%), 11.42% ETP, Due 3/1/19)                        
        Term Loan (11.50% cash (Libor + 11.00%; Floor     434       431       431  
        11.50%), 11.42% ETP, Due 3/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     2,000       1,987       1,987  
        10.50%), 6.10% ETP, Due 3/1/19)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor     6,265       6,190       6,190  
        10.00%), 4.00% ETP, Due 4/1/19)                        
Palatin Technologies, Inc. (2)(5)   Biotechnology   Term Loan (9.00% cash (Libor + 8.50%; Floor     5,000       4,939       4,939  
        9.00%), 5.00% ETP, Due 1/1/19)                        
        Term Loan (9.00% cash (Libor + 8.50%; Floor     5,000       4,937       4,937  
        9.00%), 5.00% ETP, Due 8/1/19)                        
Sample6, Inc. (2)   Biotechnology   Term Loan (9.50% cash (Libor + 9.00%; Floor     1,555       1,550       1,550  
        9.50%; Ceiling 11.00%), 4.00% ETP, Due 4/1/18)                        
        Term Loan (9.50% cash (Libor + 9.00%; Floor     945       940       940  
        9.50%; Ceiling 11.00%), 4.00% ETP, Due 4/1/18)                        
        Term Loan (9.50% cash (Libor + 9.00%; Floor     2,500       2,481       2,481  
        9.50%; Ceiling 11.00%), 4.00% ETP, Due 4/1/18)                        
Sunesis Pharmaceuticals, Inc. (2)(5)   Biotechnology   Term Loan (8.95% cash, 4.65% ETP, Due 10/1/16)     545       544       544  
        Term Loan (9.00% cash, 4.65% ETP, Due 10/1/16)     818       815       815  
IntegenX Inc. (2)   Medical Device   Term Loan (10.75% cash (Libor + 10.25%; Floor     3,750       3,703       3,703  
        10.75%; Ceiling 12.75%), 3.50% ETP, Due 7/1/18)                        
Lantos Technologies, Inc. (2)   Medical Device   Term Loan (11.50% cash (Libor + 10.50%; Floor     3,500       3,454       3,333  
        11.50%), 5.00% ETP, Due 2/1/18)                        
Mederi Therapeutics, Inc. (2)   Medical Device   Term Loan (12.06% cash (Libor + 11.82%), 4.00% ETP,     2,850       2,826       2,738  
        Due 7/1/17)                        
        Term Loan (12.06% cash (Libor + 11.82%), 4.00% ETP,     2,850       2,826       2,738  
        Due 7/1/17)                        
NinePoint Medical, Inc. (2)   Medical Device   Term Loan (9.25% cash (Libor + 8.75%; Floor     5,000       4,943       4,943  
        9.25%), 4.50% ETP, Due 3/1/19)                        
        Term Loan (9.25% cash (Libor + 8.75%; Floor     2,500       2,464       2,464  
        9.25%), 4.50% ETP, Due 3/1/19)                        
Tryton Medical, Inc. (2)   Medical Device   Term Loan (10.41% cash (Prime + 7.16%), 2.50% ETP,     2,063       2,053       2,053  
        Due 9/1/16)                        
ZetrOZ, Inc. (2)(11)   Medical Device   Term Loan (11.00% cash (Libor + 10.50%; Floor     1,350       1,330       250  
        11.00%; Ceiling 12.50%), 3.00% ETP, Due 4/1/18)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     1,350       1,326       250  
        11.00%; Ceiling 12.50%), 3.00% ETP, Due 4/1/18)                        
Total Debt Investments — Life Science                     60,930       58,477  
Debt Investments — Technology — 80.5% (8)                                
Ekahau, Inc. (2)   Communications   Term Loan (11.75% cash, 2.50% ETP, Due 2/1/17)     704       700       700  
        Term Loan (11.75% cash, 2.50% ETP, Due 2/1/17)     235       233       233  
mBlox, Inc. (2)   Communications   Term Loan (11.50% cash (Libor + 11.00%; Floor     5,000       4,977       4,977  
        11.50%; Ceiling 13.00%), 3.40% ETP, Due 7/1/18)                        
        Term Loan (11.50% cash (Libor + 11.00%; Floor     5,000       4,977       4,977  
        11.50%; Ceiling 13.00%), 3.40% ETP, Due 7/1/18)                        
        Term Loan (12.00% cash, 100.00% ETP, Due 7/1/16)     1,000       1,000       1,000  
        Term Loan (12.00% cash, 100.00% ETP, Due 7/1/16)     500       500       500  
Overture Networks, Inc. (2)   Communications   Term Loan (10.75% cash, (Libor + 10.25%; Floor     4,104       4,089       4,089  
        10.75%), 5.75% ETP, Due 12/1/17)                        
        Term Loan (10.75% cash (Libor + 10.25%; Floor     2,052       2,043       2,043  
        10.75%), 5.75% ETP, Due 12/1/17)                        
        Term Loan (10.75% cash (Libor + 10.25%; Floor     1,000       992       992  
        10.75%), 5.00% ETP, Due 11/1/18)                        
Additech, Inc. (2)   Consumer-related Technologies   Term Loan (11.75% cash (Libor + 11.25%; Floor     2,500       2,470       2,470  
        11.75%; Ceiling 13.25%), 4.00% ETP, Due 7/1/18)                        

 

See Notes to Consolidated Financial Statements

 

12

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2015

(Dollars in thousands)

 

            Principal     Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Amount     Investments (6)     Value  
        Term Loan (11.75% cash (Libor + 11.25%; Floor     2,500       2,464       2,464  
        11.75%; Ceiling 13.25%), 4.00% ETP, Due 1/1/19)                        
Gwynnie Bee, Inc. (2)   Consumer-related Technologies   Term Loan (11.00% cash (Libor + 10.50%; Floor     1,467       1,445       1,445  
        11.00%; Ceiling 12.50%), 2.00% ETP, Due 11/1/17)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     833       816       816  
        11.00%; Ceiling 12.50%), 2.00% ETP, Due 2/1/18)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     900       886       886  
        11.00%; Ceiling 12.50%), 2.00% ETP, Due 4/1/18)                        
Rhapsody International, Inc. (2)   Consumer-related Technologies   Term Loan (11.00% cash (Libor + 10.50%; Floor     7,500       7,276       7,276  
        11.00%), 3.00% ETP, Due 10/1/19)                        
SavingStar, Inc. (2)   Consumer-related Technologies   Term Loan (10.90% cash (Libor + 10.40%; Floor     3,000       2,911       2,911  
        10.90%), 3.00% ETP, Due 6/1/19)                        
The NanoSteel Company, Inc. (2)   Materials   Term Loan (10.00% cash (Libor + 9.50%; Floor     5,000       4,915       4,915  
        10.00%), 5.00% ETP, Due 7/1/19)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor     2,500       2,458       2,458  
        10.00%), 5.00% ETP, Due 7/1/19)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor     2,500       2,452       2,452  
        10.00%), 5.00% ETP, Due 1/1/20)                        
Nanocomp Technologies, Inc. (2)   Networking   Term Loan (11.50% cash, 3.00% ETP, Due 11/1/17)     701       693       693  
Powerhouse Dynamics, Inc. (2)   Power Management   Term Loan (11.20% cash (Libor + 10.70%; Floor     2,500       2,456       2,456  
        11.20%), 3.00% ETP, Due 3/1/19)                        
Avalanche Technology, Inc. (2)   Semiconductors   Term Loan (10.00% cash (Libor + 9.25%; Floor 10.00%;     1,565       1,561       1,561  
        Ceiling 11.75%), 2.40% ETP, Due 4/1/17)                        
        Term Loan (10.00% cash (Libor + 9.25%; Floor 10.00%;     2,003       1,997       1,997  
        Ceiling 11.75%), 2.40% ETP, Due 10/1/18)                        
        Term Loan (10.00% cash (Libor + 9.25%; Floor 10.00%;     2,202       2,157       2,157  
        Ceiling 11.75%), 2.00% ETP, Due 2/1/19)                        
InVisage Technologies, Inc. (2)   Semiconductors   Term Loan (12.00% cash (Libor + 11.50%; Floor     2,380       2,345       2,242  
        12.00%; Ceiling 14.00%), 2.00% ETP, Due 4/1/18)                        
        Term Loan (12.00% cash (Libor + 11.50%; Floor     850       835       798  
        12.00%; Ceiling 14.00%), 2.00% ETP, Due 10/1/18)                        
Luxtera, Inc. (2)   Semiconductors   Term Loan (10.25% cash (Libor + 9.75%; Floor 10.25%;     1,646       1,645       1,645  
        Ceiling 12.25%), 13.00% ETP, Due 7/1/17)                        
        Term Loan (10.25% cash (Libor + 9.75%; Floor 10.25%;     951       926       926  
        Ceiling 12.25%), 13.00% ETP, Due 7/1/17)                        
        Term Loan (9.00% cash (Libor + 8.50%; Floor 9.00%),     833       828       828  
        4.50% ETP, Due 12/1/18)                        
        Term Loan (9.00% cash (Libor + 8.50%; Floor 9.00%),     833       827       827  
        4.50% ETP, Due 12/1/18)                        
Xtera Communications, Inc. (2)(5)   Semiconductors   Term Loan (12.50% cash, 15.65% ETP, Due 12/31/16)     4,157       4,114       4,114  
        Term Loan (12.50% cash, 21.75% ETP, Due 12/31/16)     1,155       1,142       1,142  
Bridge2 Solutions, Inc.   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     4,000       3,966       3,966  
        11.50%; Ceiling 14.50%), 2.00% ETP, Due 7/1/19)                        
        Term Loan (11.50% cash (Libor + 11.00%; Floor     1,000       995       995  
        11.50%; Ceiling 14.50%), 2.00% ETP, Due 1/1/20)                        
Crowdstar, Inc. (2)   Software   Term Loan (10.75% cash (Libor + 10.25%; Floor     1,939       1,915       1,915  
        10.75%), 3.00% ETP, Due 9/1/18)                        
Decisyon, Inc. (2)   Software   Term Loan (12.69% cash (Libor + 12.308%; Floor     1,603       1,599       1,514  
        12.50%), 6.50% ETP, Due 10/1/17)                        
        Term Loan (12.69% cash (Libor + 12.308%; Floor     853       847       802  
        12.50%), 6.50% ETP, Due 1/1/18)                        
Digital Signal Corporation   Software   Term Loan (10.54% cash (Libor + 10.25%; Floor     1,500       1,421       1,421  
        10.43%), 5.00% ETP, Due 7/1/19)                        
        Term Loan (10.54% cash (Libor + 10.25%; Floor     1,500       1,457       1,457  
        10.43%), 5.00% ETP, Due 7/1/19)                        
Education Elements, Inc. (2)   Software   Term Loan (10.50% cash (Libor + 10.00%; Floor     2,000       1,967       1,967  
        10.50%), 4.00% ETP, Due 1/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     1,500       1,470       1,470  
        10.50%), 4.00% ETP, Due 8/1/19)                        
Netuitive, Inc. (2)   Software   Term Loan (12.75% cash, Due 7/1/16)     1,000       998       998  
ScoreBig, Inc. (2)   Software   Term Loan (10.50% cash (Libor + 10.00%; Floor     3,500       3,449       3,449  
        10.50%), 4.00% ETP, Due 4/1/19)                        

 

See Notes to Consolidated Financial Statements

 

13

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2015

(Dollars in thousands)

 

            Principal     Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Amount     Investments (6)     Value  
        Term Loan (10.50% cash (Libor + 10.00%; Floor     3,500       3,449       3,449  
        10.50%), 4.00% ETP, Due 4/1/19)                        
SIGNiX, Inc. (2)   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     3,000       2,953       2,953  
        11.50%), Due 7/1/18)                        
SilkRoad Technology, Inc. (2)   Software   Term Loan (10.85% cash (Libor + 10.35%; Floor     7,500       7,436       7,436  
        10.85%; Ceiling 12.85%), 3.00% ETP, Due 6/1/19)                        
Skyword, Inc.   Software   Term Loan (11.45% cash (Libor + 10.95%; Floor     4,000       3,900       3,900  
        11.45%), 3.00% ETP, Due 8/1/19)                        
Social Intelligence Corp. (2)   Software   Term Loan (11.00% cash (Libor + 10.50%; Floor     1,091       1,076       1,067  
        11.00%; Ceiling 13.00%), 3.50% ETP, Due 12/1/17)                        
SpringCM, Inc. (2)   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     4,500       4,450       4,450  
        11.50%; Ceiling 13.00%), 2.00% ETP, Due 1/1/18)                        
Sys-Tech Solutions, Inc. (2)   Software   Term Loan (11.65% cash (Libor + 11.15%; Floor     5,200       5,168       5,168  
        11.65%; Ceiling 12.65%), 4.50% ETP, Due 3/1/18)                        
        Term Loan (11.65% cash (Libor + 11.15%; Floor     4,667       4,633       4,633  
        11.65%; Ceiling 12.65%), 9.00% ETP, Due 5/1/18)                        
VBrick Systems, Inc. (2)   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     1,900       1,887       1,887  
        11.50%; Ceiling 13.50%), 5.00% ETP, Due 7/1/17)                        
Vidsys, Inc. (2)   Software   Term Loan (13.00% cash, 7.58% ETP, Due 12/1/17)     2,810       2,810       2,810  
xTech Holdings, Inc. (2)   Software   Term Loan (11.00% cash (Libor + 10.50%; Floor     2,000       1,957       1,957  
        11.00%), 3.00% ETP, Due 4/1/19)                        
Total Debt Investments — Technology                     128,933       128,654  
Debt Investments — Cleantech — 7.5% (8)                                
Renmatix, Inc. (2)   Alternative Energy   Term Loan (10.25% cash, 3.00% ETP, Due 2/1/16)     173       173       173  
        Term Loan (10.25% cash, 3.00% ETP, Due 2/1/16)     173       173       173  
        Term Loan (10.25% cash, Due 10/1/16)     1,667       1,663       1,663  
Semprius, Inc. (2)   Alternative Energy   Term Loan (10.25% cash, 5.00% ETP, Due 6/1/16)     860       840       840  
Rypos, Inc. (2)   Energy Efficiency   Term Loan (11.80% cash, 4.25% ETP, Due 6/1/17)     2,430       2,314       2,314  
        Term Loan (11.80% cash, 4.25% ETP, Due 1/1/18)     947       913       913  
Lehigh Technologies, Inc. (2)   Waste Recycling   Term Loan (9.96% cash (Libor + 9.72%), 6.75% ETP,     3,000       2,961       2,961  
        Due 8/1/19)                        
        Term Loan (9.96% cash (Libor + 9.72%), 6.75% ETP,     3,000       2,975       2,975  
        Due 8/1/19)                        
Total Debt Investments — Cleantech                     12,012       12,012  
Debt Investments — Healthcare information and services — 27.0% (8)                                
Interleukin Genetics, Inc. (2)(5)   Diagnostics   Term Loan (9.00% cash (Libor + 8.50%; Floor 9.00%)     5,000       4,881       4,881  
        4.50% ETP, Due 10/1/18)                        
LifePrint Group, Inc. (2)   Diagnostics   Term Loan (11.00% cash (Libor + 10.50%; Floor     2,400       2,366       2,366  
        11.00%; Ceiling 12.50%), 3.00% ETP, Due 1/1/18)                        
Watermark Medical, Inc. (2)   Other Healthcare   Term Loan (10.00% cash (Libor + 9.50%; Floor 10.00%;     3,500       3,494       3,494  
        Ceiling 11.00%); 4.00% ETP, Due 4/1/18)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor 10.00%;     3,500       3,494       3,494  
        Ceiling 11.00%); 4.00% ETP, Due 4/1/18)                        
        Term Loan (10.00% cash (Libor + 9.50%; Floor 10.00%;     1,250       1,248       1,248  
        Ceiling 11.00%); 4.00% ETP, Due 4/1/18)                        
Innovatient Solutions, Inc. (2)   Software   Term Loan (11.00% cash (Libor + 10.50%; Floor     1,000       977       977  
        11.00%, Ceiling 13.00%); 4.00% ETP, Due 7/1/18)                        
MedAvante, Inc. (2)   Software   Term Loan (9.75% cash (Libor + 9.25%; Floor     3,000       2,957       2,957  
        9.75%), 4.00% ETP, Due 1/1/19)                        
        Term Loan (9.75% cash (Libor + 9.25%; Floor     3,000       2,957       2,957  
        9.75%), 4.00% ETP, Due 1/1/19)                        
        Term Loan (9.75% cash (Libor + 9.25%; Floor     4,000       3,934       3,934  
        9.75%), 4.00% ETP, Due 7/1/19)                        
Medsphere Systems Corporation (2)   Software   Term Loan (10.50% cash (Libor + 10.00%; Floor     5,000       4,921       4,921  
        10.50%), 7.00% ETP, Due 7/1/19)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     2,500       2,461       2,461  
        10.50%), 7.00% ETP, Due 7/1/19)                        
Recondo Technology, Inc. (2)   Software   Term Loan (11.50% cash (Libor + 11.00%; Floor     1,384       1,380       1,380  
        11.50%), 6.60% ETP, Due 12/1/17)                        
        Term Loan (11.00% cash (Libor + 10.50%; Floor     2,500       2,494       2,494  
        11.00%), 4.50% ETP, Due 12/1/17)                        

 

See Notes to Consolidated Financial Statements

 

14

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2015

(Dollars in thousands)

 

            Principal     Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)   Amount     Investments (6)     Value  
        Term Loan (10.50% cash (Libor + 10.00%; Floor     2,500       2,495       2,495  
        10.50%), 2.75% ETP, Due 12/1/17)                        
        Term Loan (10.50% cash (Libor + 10.00%; Floor     3,000       2,965       2,965  
        10.50%), 2.50% ETP, Due 1/1/19)                        
Total Debt Investments — Healthcare information and services                     43,024       43,024  
Total Debt Investments                     244,899       242,167  
                                 
Warrant Investments — 4.2% (8)                                
Warrants — Life Science — 0.8% (8)                                
ACT Biotech Corporation   Biotechnology   1,521,820 Preferred Stock Warrants             83        
Argos Therapeutics, Inc. (2)(5)   Biotechnology   33,112 Common Stock Warrants             33        
Celsion Corporation (5)   Biotechnology   5,708 Common Stock Warrants             15        
Inotek Pharmaceuticals Corporation (5)   Biotechnology   28,204 Preferred Stock Warrants             17       149  
New Haven Pharmaceuticals, Inc. (2)   Biotechnology   103,982 Preferred Stock Warrants             88       178  
Nivalis Therapeutics, Inc. (5)   Biotechnology   18,534 Common Stock Warrants             122        
Ocera Therapeutics, Inc. (2)(5)   Biotechnology   6,460 Common Stock Warrants             6        
Palatin Technologies, Inc. (2)(5)   Biotechnology   608,058 Common Stock Warrants             51       16  
Revance Therapeutics, Inc. (5)   Biotechnology   34,377 Common Stock Warrants             68       684  
Sample6, Inc. (2)   Biotechnology   351,018 Preferred Stock Warrants             45       40  
Sunesis Pharmaceuticals, Inc. (5)   Biotechnology   12,302 Common Stock Warrants             5        
AccuVein Inc. (2)   Medical Device   75,769 Preferred Stock Warrants             24       30  
Direct Flow Medical, Inc.   Medical Device   176,922 Preferred Stock Warrants             144       41  
EnteroMedics, Inc. (5)   Medical Device   141,025 Common Stock Warrants             347        
IntegenX, Inc. (2)   Medical Device   158,006 Preferred Stock Warrants             33       25  
Lantos Technologies, Inc. (2)   Medical Device   1,287,817 Preferred Stock Warrants             38       43  
Mederi Therapeutics, Inc. (2)   Medical Device   248,736 Preferred Stock Warrants             26       41  
Mitralign, Inc. (2)   Medical Device   641,909 Preferred Stock Warrants             52       38  
NinePoint Medical, Inc. (2)   Medical Device   566,038 Preferred Stock Warrants             33       34  
OraMetrix, Inc. (2)   Medical Device   812,348 Preferred Stock Warrants             78        
Tryton Medical, Inc. (2)   Medical Device   122,362 Preferred Stock Warrants             15       12  
ViOptix, Inc.   Medical Device   375,763 Preferred Stock Warrants             13        
ZetrOZ, Inc. (2)   Medical Device   475,561 Preferred Stock Warrants             25        
Total Warrants — Life Science                     1,361       1,331  
Warrants — Technology — 2.6% (8)                                
Ekahau, Inc. (2)   Communications   978,261 Preferred Stock Warrants             33       19  
OpenPeak, Inc.   Communications   18,997 Common Stock Warrants             89        
Overture Networks, Inc.   Communications   385,617 Preferred Stock Warrants             55       386  
Additech, Inc. (2)   Consumer-related Technologies   150,000 Preferred Stock Warrants             32       27  
Everyday Health, Inc. (5)   Consumer-related Technologies   43,783 Common Stock Warrants             69       1  
Gwynnie Bee, Inc. (2)   Consumer-related Technologies   268,591 Preferred Stock Warrants             68       634  
If(we), Inc.   Consumer-related Technologies   190,868 Preferred Stock Warrants             27       62  
Rhapsody International Inc. (2)   Consumer-related Technologies   852,273 Common Stock Warrants             164       165  
SavingStar, Inc. (2)   Consumer-related Technologies   79,088 Preferred Stock Warrants             48       49  
XIOtech, Inc.   Data Storage   2,217,979 Preferred Stock Warrants             22       19  
SimpleTuition, Inc.   Internet and media   189,573 Preferred Stock Warrants             63       69  
The NanoSteel Company, Inc. (2)   Materials   147,424 Preferred Stock Warrants             93       95  
IntelePeer, Inc.   Networking   141,549 Common Stock Warrants             39       27  
Nanocomp Technologies, Inc. (2)   Networking   272,728 Preferred Stock Warrants             25       20  
Aquion Energy, Inc.   Power Management   115,051 Preferred Stock Warrants             7       57  
Powerhouse Dynamics, Inc. (2)   Power Management   290,698 Preferred Stock Warrants             27       28  
Avalanche Technology, Inc. (2)   Semiconductors   202,602 Preferred Stock Warrants             101       45  
eASIC Corporation (2)   Semiconductors   40,445 Preferred Stock Warrants             25       29  
InVisage Technologies, Inc. (2)   Semiconductors   185,790 Preferred Stock Warrants             48       47  
Kaminario, Inc.   Semiconductors   1,087,203 Preferred Stock Warrants             59       65  
Luxtera, Inc.(2)   Semiconductors   2,304,667 Preferred Stock Warrants             48       103  
Soraa, Inc. (2)   Semiconductors   180,000 Preferred Stock Warrants             80       102  
Xtera Communications, Inc. (5)   Semiconductors   37,831 Preferred Stock Warrants             206        
Bolt Solutions Inc. (2)   Software   202,892 Preferred Stock Warrants             113       119  
Bridge2 Solutions, Inc.   Software   1,769 Common Stock Warrants             18       688  

 

See Notes to Consolidated Financial Statements

 

15

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2015

(Dollars in thousands)

 

                  Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)           Investments (6)     Value  
Clarabridge, Inc.   Software   53,486 Preferred Stock Warrants             14       82  
Crowdstar, Inc. (2)   Software   75,428 Preferred Stock Warrants             14       14  
Decisyon, Inc. (2)   Software   2,526,909 Common Stock Warrants             46        
Digital Signal Corporation   Software   85,308 Common Stock Warrants             32       32  
Education Elements, Inc. (2)   Software   238,122 Preferred Stock Warrants             28       29  
Lotame Solutions, Inc. (2)   Software   288,115 Preferred Stock Warrants             22       271  
Lytx, Inc.   Software   71,639 Preferred Stock Warrants             20       121  
Netuitive, Inc.   Software   41,569 Common Stock Warrants             48        
Riv Data Corp. (2)   Software   237,361 Preferred Stock Warrants             13       12  
ScoreBig, Inc. (2)   Software   481,198 Preferred Stock Warrants             55       57  
SIGNiX, Inc. (2)   Software   63,365 Preferred Stock Warrants             48       49  
Skyword, Inc.   Software   301,056 Preferred Stock Warrants             48       48  
SpringCM, Inc. (2)   Software   2,385,686 Preferred Stock Warrants             55       54  
Sys-Tech Solutions, Inc.   Software   375,000 Preferred Stock Warrants             242       524  
Vidsys, Inc.   Software   37,346 Preferred Stock Warrants             23        
Visage Mobile, Inc.   Software   1,692,047 Preferred Stock Warrants             19        
xTech Holdings, Inc. (2)   Software   111,111 Preferred Stock Warrants             30       32  
Total Warrants — Technology                     2,316       4,181  
Warrants — Cleantech — 0.2% (8)                                
Renmatix, Inc.   Alternative Energy   53,022 Preferred Stock Warrants             68       68  
Semprius, Inc.   Alternative Energy   519,981 Preferred Stock Warrants             25       21  
Rypos, Inc. (2)   Energy Efficiency   5,627 Preferred Stock Warrants             44       32  
Tigo Energy, Inc. (2)   Energy Efficiency   804,604 Preferred Stock Warrants             100       111  
Lehigh Technologies, Inc. (2)   Waste Recycling   272,727 Preferred Stock Warrants             32       34  
Total Warrants — Cleantech                     269       266  
Warrants — Healthcare information and services — 0.6% (8)                                
Accumetrics, Inc.   Diagnostics   100,928 Preferred Stock Warrants             108       63  
BioScale, Inc. (2)   Diagnostics   315,618 Common Stock Warrants             54        
Candescent Health, Inc. (2)   Diagnostics   519,992 Preferred Stock Warrants             378        
Helomics Corporation   Diagnostics   13,461Common Stock Warrants             73        
Interleukin Genetics, Inc. (2)(5)   Diagnostics   2,492,523 Common Stock Warrants             112       2  
LifePrint Group, Inc. (2)   Diagnostics   49,000 Preferred Stock Warrants             29       24  
Singulex, Inc.   Other Healthcare   293,632 Preferred Stock Warrants             43       167  
Verity Solutions Group, Inc.   Other Healthcare   300,360 Preferred Stock Warrants             100       36  
Watermark Medical, Inc. (2)   Other Healthcare   27,373 Preferred Stock Warrants             74       65  
Innovatient Solutions, Inc. (2)   Software   157,895 Preferred Stock Warrants             35       35  
MedAvante, Inc. (2)   Software   114,285 Preferred Stock Warrants             66       68  
Medsphere Systems Corporation (2)   Software   7,097,791 Preferred Stock Warrants             60       210  
Recondo Technology, Inc. (2)   Software   556,796 Preferred Stock Warrants             95       197  
Total Warrants — Healthcare information and services                     1,227       867  
Total Warrants                     5,173       6,645  
                                 
Other Investments — 0.2% (8)                                
Vette Technology, LLC   Data Storage   Royalty Agreement Due 4/18/2019             4,422       300  
Total Other Investments                     4,422       300  
Equity — 0.7% (8)                                
Insmed Incorporated (5)   Biotechnology   33,208 Common Stock             238       603  
Revance Therapeutics, Inc.(5)   Biotechnology   4,861 Common Stock             73       166  
Sunesis Pharmaceuticals, Inc. (5)   Biotechnology   78,493 Common Stock             83       70  
Overture Networks Inc.   Communications   772,382 Common Stock             482        
SnagAJob.com, Inc.   Consumer-related Technologies   151,655 Common Stock             23       215  
Decisyon, Inc.   Technology   2,301,717 Common Stock             101       101  
Total Equity                     1,000       1,155  
Total Portfolio Investment Assets — 156.7% (8)                   $ 255,494     $ 250,267  
                                 
Short Term Investments — Money Market Funds — 0.2% (8)                                
US Bank Money Market Deposit Account                   $ 285     $ 285  
Total Short Term Investments — Money Market Funds                   $ 285     $ 285  

 

See Notes to Consolidated Financial Statements

 

16

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2015

(Dollars in thousands)

 

                  Cost of     Fair  
Portfolio Company (1)   Sector   Type of Investment (3)(4)(7)(9)(10)           Investments (6)