Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form 10-Q


(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021

OR

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)

(860) 676-8654

(Registrant’s telephone number, including area code)


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 No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

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

The number of shares of the registrant’s common stock traded under the symbol “HRZN” on the Nasdaq Global Select Market, $0.001 par value per share, outstanding as of April 27, 2021 was 19,659,468.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Ticker symbol(s)

    

Name of each exchange on which registered

Common Stock, par value $0.001 per share

HRZN

The Nasdaq Stock Market LLC

4.875% Notes due 2026

HTFB

The New York Stock Exchange


Table of Contents

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 March 31, 2021 (unaudited) and December 31, 2020

3

Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (unaudited)

4

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2021 and 2020 (unaudited)

5

Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)

6

Consolidated Schedules of Investments as of March 31, 2021 (unaudited) and December 31, 2020

7

Notes to the Consolidated Financial Statements (unaudited)

18

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

43

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

59

Item 4.

Controls and Procedures

60

PART II

61

Item 1.

Legal Proceedings

61

Item 1A.

Risk Factors

61

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

61

Item 3.

Defaults Upon Senior Securities

61

Item 4.

Mine Safety Disclosures

61

Item 5.

Other Information

61

Item 6.

Exhibits

62

Signatures

63

EX-31.1

EX-31.2

EX-32.1

EX-32.2

2


Table of Contents

PART I: FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Statements of Assets and Liabilities

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

March 31, 

December 31, 

    

2021

    

2020

Assets

 

(Unaudited)

 

  

Non-affiliate investments at fair value (cost of $365,381 and $343,158, respectively)

$

371,984

$

343,498

Non-controlled affiliate investments at fair value (cost of $6,884 and $6,854, respectively) (Note 5)

 

6,539

 

7,547

Controlled affiliate investments at fair value (cost of $1,500) (Note 5)

 

1,500

 

1,500

Total investments at fair value (cost of $373,765 and $351,512, respectively) (Note 4)

 

380,023

 

352,545

Cash

 

70,386

 

19,502

Investments in money market funds

 

10,184

 

27,199

Restricted investments in money market funds

 

1,539

 

1,057

Interest receivable

 

5,821

 

4,946

Other assets

 

1,663

 

1,908

Total assets

$

469,616

$

407,157

Liabilities

 

  

 

  

Borrowings (Note 7)

$

242,062

$

185,819

Distributions payable

 

5,897

 

5,786

Base management fee payable (Note 3)

 

600

 

563

Incentive fee payable (Note 3)

 

1,501

 

975

Other accrued expenses

 

1,885

 

1,417

Total liabilities

 

251,945

 

194,560

Commitments and contingencies (Note 8)

 

  

 

  

Net assets

 

  

 

  

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of March 31, 2021 and December 31, 2020

 

 

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 19,825,280 and 19,453,821 shares issued and 19,657,815 and 19,286,356 shares outstanding as of March 31, 2021 and December 31, 2020, respectively

 

20

 

19

Paid-in capital in excess of par

 

276,239

 

271,287

Distributable earnings

 

(58,588)

 

(58,709)

Total net assets

 

217,671

 

212,597

Total liabilities and net assets

$

469,616

$

407,157

Net asset value per common share

$

11.07

$

11.02

See Notes to Consolidated Financial Statements

3


Table of Contents

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

March 31, 

    

2021

    

2020

    

Investment income

 

  

 

  

 

Interest income on investments

 

  

 

  

 

Interest income on non-affiliate investments

$

12,490

$

9,394

Interest income on affiliate investments

 

172

 

182

Total interest income on investments

 

12,662

 

9,576

Fee income

 

  

 

  

Fee income on non-affiliate investments

 

541

 

105

Fee income on affiliate investments

 

12

 

3

Total fee income

 

553

 

108

Dividend income

 

  

 

  

Dividend income on controlled affiliate investments

 

 

430

Total dividend income

 

 

430

Total investment income

 

13,215

 

10,114

Expenses

 

  

 

  

Interest expense

 

2,715

 

2,162

Base management fee (Note 3)

 

1,771

 

1,582

Performance based incentive fee (Note 3)

 

1,501

 

1,071

Administrative fee (Note 3)

 

289

 

253

Professional fees

 

509

 

502

General and administrative

 

365

 

262

Total expenses

 

7,150

 

5,832

Net investment income before excise tax

 

6,065

 

4,282

Provision for excise tax

 

62

 

Net investment income

 

6,003

 

4,282

Net realized and unrealized gain (loss) on investments

 

  

 

  

Net realized (loss) gain on non-affiliate investments

 

(5,208)

 

3,479

Net realized gain on controlled affiliate investments

13

Net realized (loss) gain on investments

 

(5,208)

 

3,492

Net unrealized appreciation (depreciation) on non-affiliate investments

 

6,263

 

(7,790)

Net unrealized depreciation on non-controlled affiliate investments

 

(1,039)

 

(543)

Net unrealized depreciation on controlled affiliate investments

 

 

(149)

Net unrealized appreciation (depreciation) on investments

 

5,224

 

(8,482)

Net realized and unrealized gain (loss) on investments

 

16

 

(4,990)

Net increase (decrease) in net assets resulting from operations

$

6,019

$

(708)

Net investment income per common share

$

0.31

$

0.26

Net increase (decrease) in net assets per common share

$

0.31

$

(0.04)

Distributions declared per share

$

0.30

$

0.35

Weighted average shares outstanding

 

19,366,581

 

16,716,488

See Notes to Consolidated Financial Statements

4


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Statements of Changes in Net Assets (Unaudited)

(Dollars in thousands, except share data)

Paid-In Capital

Common Stock

in Excess of

Distributable

Total Net

    

Shares

    

Amount

    

Par

    

Earnings

    

Assets

Balance at December 31, 2019

 

15,563,290

16

226,660

(42,621)

$

184,055

Issuance of common stock, net of offering costs

 

1,285,410

 

1

 

16,176

 

 

16,177

Net increase in net assets resulting from operations, net of excise tax:

 

  

 

  

 

  

 

  

 

  

Net investment income, net of excise tax

 

4,282

4,282

Net realized gain on investments

 

 

 

 

3,492

 

3,492

Net unrealized depreciation on investments

 

 

 

 

(8,482)

 

(8,482)

Issuance of common stock under dividend reinvestment plan

 

3,910

 

 

50

 

 

50

Distributions declared

 

 

 

 

(6,117)

 

(6,117)

Balance at March 31, 2020

 

16,852,610

17

242,886

(49,446)

193,457

Balance at December 31, 2020

19,286,356

19

271,287

(58,709)

$

212,597

Issuance of common stock, net of offering costs

 

366,140

 

1

 

4,876

 

 

4,877

Net increase in net assets resulting from operations, net of excise tax:

 

  

 

  

 

  

 

  

 

  

Net investment income, net of excise tax

 

6,003

6,003

Net realized loss on investments

 

 

 

 

(5,208)

 

(5,208)

Net unrealized appreciation on investments

 

 

 

 

5,224

 

5,224

Issuance of common stock under dividend reinvestment plan

 

5,319

 

 

76

 

 

76

Distributions declared

 

 

 

 

(5,898)

 

(5,898)

Balance at March 31, 2021

 

19,657,815

$

20

$

276,239

$

(58,588)

$

217,671

See Notes to Consolidated Financial Statements

5


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

For the three months ended March 31, 

    

2021

    

2020

Cash flows from operating activities:

 

  

 

  

Net increase (decrease) in net assets resulting from operations

$

6,019

$

(708)

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:

 

 

Amortization of debt issuance costs

 

236

 

204

Net realized loss (gain) on investments

 

5,208

 

(3,492)

Net unrealized (appreciation) depreciation on investments

 

(5,224)

 

8,482

Purchase of investments

 

(51,375)

 

(50,646)

Principal payments received on investments

 

24,132

 

25,934

Proceeds from sale of investments

873

5,680

Dividends from controlled affiliate investment

 

 

(430)

Changes in assets and liabilities:

 

  

 

  

Increase in interest receivable

 

(368)

 

(268)

Increase in end-of-term payments

 

(817)

 

(642)

Decrease in unearned income

 

(603)

 

(483)

(Increase) decrease in other assets

 

(41)

 

138

Increase in other accrued expenses

 

468

 

39

Increase in base management fee payable

 

37

 

21

Increase (decrease) in incentive fee payable

 

526

 

(542)

Net cash used in operating activities

 

(20,929)

 

(16,713)

Cash flows from financing activities:

 

  

 

  

Proceeds from issuance of senior notes

57,500

Proceeds from issuance of common stock, net of offering costs

 

4,877

 

16,177

Advances on Credit Facilities

 

36,500

 

45,000

Repayment of Credit Facilities

 

(36,000)

 

(17,000)

Debt issuance costs

(1,886)

Distributions paid

 

(5,711)

 

(4,838)

Net cash provided by financing activities

 

55,280

 

39,339

Net increase in cash, cash equivalents and restricted cash

 

34,351

 

22,626

Cash, cash equivalents and restricted cash:

 

  

 

  

Beginning of period

 

47,758

 

17,385

End of period

$

82,109

$

40,011

Supplemental disclosure of cash flow information:

 

  

 

  

Cash paid for interest

$

2,274

$

1,911

Supplemental non-cash investing and financing activities:

 

  

 

  

Warrant investments received and recorded as unearned income

$

679

$

367

Distributions payable

$

5,897

$

5,898

End-of-term payments receivable

$

4,710

$

4,542

Non-cash income

$

1,478

$

1,200

Three months ended March 31, 

    

2021

    

2020

Cash

$

70,386

$

37,989

Investments in money market funds

 

10,184

 

845

Restricted investments in money market funds

 

1,539

 

1,177

Total cash, cash equivalents and restricted cash

$

82,109

$

40,011

See Notes to Consolidated Financial Statements

6


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(Dollars in thousands)

    

    

    

Principal

    

Cost of

    

Fair

Portfolio Company (1)(3)

Sector

Type of Investment (4)(7)(9)(10)

    

Amount

    

Investments (6)

    

Value

Non-Affiliate Investments — 170.9% (8)

 

  

 

  

 

  

 

  

 

  

Non-Affiliate Debt Investments — 163.5% (8)

 

  

 

  

 

  

 

  

Non-Affiliate Debt Investments — Life Science — 71.4% (8)

 

  

 

  

 

  

 

  

Castle Creek Pharmaceuticals Holdings, Inc.(2)(12)

Biotechnology

Term Loan (9.30% cash (Libor + 7.50%; Floor 9.30%), 5.00% ETP, Due 3/1/24)

$

5,000

$

4,889

$

4,889

Term Loan (9.30% cash (Libor + 7.50%; Floor 9.30%), 5.00% ETP, Due 3/1/24)

5,000

4,943

4,943

Term Loan (9.30% cash (Libor + 7.50%; Floor 9.30%), 5.00% ETP, Due 3/1/24)

5,000

4,943

4,943

Term Loan (9.30% cash (Libor + 7.50%; Floor 9.30%), 5.00% ETP, Due 3/1/24)

5,000

4,943

4,943

Celsion Corporation (2)(5)(12)

 

Biotechnology

 

Term Loan (9.63% cash (Libor + 7.63%; Floor 9.63%), 5.50% ETP, Due 4/1/23)

2,500

 

2,479

2,479

 

 

Term Loan (9.63% cash (Libor + 7.63%; Floor 9.63%), 5.50% ETP, Due 4/1/23)

 

2,500

2,527

2,483

Emalex Biosciences, Inc. (2)(12)

Biotechnology

Term Loan (9.75% cash (Libor + 7.90%; Floor 9.75%), 5.00% ETP, Due 12/1/23)

2,500

2,357

2,357

Term Loan (9.75% cash (Libor + 7.90%; Floor 9.75%), 5.00% ETP, Due 12/1/23)

2,500

2,461

2,461

LogicBio, Inc.(2)(5)(12)

Biotechnology

Term Loan (8.75% cash (Libor + 6.25%; Floor 8.75%), 4.50% ETP, Due 6/1/24)

5,000

4,979

4,979

Provivi, Inc. (2)(12)

Biotechnology

Term Loan (9.50% cash (Libor + 8.50%; Floor 9.50%), 5.50% ETP, Due 12/1/24)

5,000

4,769

4,769

Term Loan (9.50% cash (Libor + 8.50%; Floor 9.50%), 5.50% ETP, Due 12/1/24)

5,000

4,918

4,918

Bardy Diagnostics, Inc. (2)(12)

Medical Device

Term Loan (8.90% cash (Libor + 7.00%; Floor 8.90%), 5.00% ETP, Due 9/1/24)

5,000

4,948

4,948

Term Loan (8.90% cash (Libor + 7.00%; Floor 8.90%), 5.00% ETP, Due 9/1/24)

5,000

4,948

4,948

Term Loan (8.90% cash (Libor + 7.00%; Floor 8.90%), 5.00% ETP, Due 9/1/24)

1,000

989

989

Term Loan (8.90% cash (Libor + 7.00%; Floor 8.90%), 5.00% ETP, Due 9/1/24)

1,000

989

989

Term Loan (8.90% cash (Libor + 7.00%; Floor 8.90%), 5.00% ETP, Due 9/1/24)

1,000

989

989

Term Loan (8.90% cash (Libor + 7.00%; Floor 8.90%), 5.00% ETP, Due 9/1/24)

1,000

989

989

Term Loan (8.90% cash (Libor + 7.00%; Floor 8.90%), 5.00% ETP, Due 9/1/24)

1,000

989

989

Canary Medical Inc. (2)(12)

Medical Device

Term Loan (9.00% cash (Prime + 5.75%; Floor 9.00%), 7.00% ETP, Due 11/1/24)

2,500

2,349

2,349

Ceribell, Inc. (2)(12)

Medical Device

Term Loan (8.25% cash (Libor + 6.70%; Floor 8.25%), 5.50% ETP, Due 10/1/24)

5,000

4,882

4,882

Term Loan (8.25% cash (Libor + 6.70%; Floor 8.25%), 5.50% ETP, Due 10/1/24)

5,000

4,946

4,946

Conventus Orthopaedics, Inc. (2)(12)

 

Medical Device

 

Term Loan (9.25% cash (Libor + 8.00%; Floor 9.25%), 10.36% ETP, Due 7/1/25)

 

4,936

 

4,878

 

4,878

 

 

Term Loan (9.25% cash (Libor + 8.00%; Floor 9.25%), 10.36% ETP, Due 7/1/25)

 

4,936

 

4,878

4,878

Corinth Medtech, Inc. (2)(12)

Medical Device

Term Loan (8.50% cash (Prime + 5.25%; Floor 8.50%), 20.00% ETP, Due 4/1/22)

2,500

2,480

2,480

Term Loan (8.50% cash (Prime + 5.25%; Floor 8.50%), 20.00% ETP, Due 4/1/22)

2,500

2,480

2,480

CSA Medical, Inc. (2)(12)

 

Medical Device

 

Term Loan (10.00% cash (Libor + 8.20%; Floor 10.00%), 5.00% ETP, Due 1/1/24)

 

3,750

 

3,708

 

3,708

Term Loan (10.00% cash (Libor + 8.20%; Floor 10.00%), 5.00% ETP, Due 1/1/24)

250

247

247

Term Loan (10.00% cash (Libor + 8.20%; Floor 10.00%), 5.00% ETP, Due 3/1/24)

4,000

3,959

3,959

CVRx, Inc. (2)(12)

Medical Device

Term Loan (10.00% cash (Libor + 7.80%; Floor 10.00%), 3.50% ETP, Due 10/1/24)

5,000

4,951

4,951

Term Loan (10.00% cash (Libor + 7.80%; Floor 10.00%), 3.50% ETP, Due 10/1/24)

5,000

4,951

4,951

Term Loan (10.00% cash (Libor + 7.80%; Floor 10.00%), 3.50% ETP, Due 10/1/24)

5,000

4,951

4,951

Term Loan (10.00% cash (Libor + 7.80%; Floor 10.00%), 3.50% ETP, Due 10/1/24)

5,000

4,951

4,951

InfoBionic, Inc. (2)(12)

Medical Device

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 10/1/24)

3,500

3,331

3,331

MacuLogix, Inc. (2)(12)

 

Medical Device

 

Term Loan (10.08% cash (Libor + 7.68%; Floor 10.08%), 5.50% ETP, Due 10/1/23)

 

7,500

 

7,429

 

7,429

 

 

Term Loan (10.08% cash (Libor + 7.68%; Floor 10.08%), 5.50% ETP, Due 10/1/23)

 

4,050

 

4,012

4,012

See Notes to Consolidated Financial Statements

7


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(Dollars in thousands)

    

    

    

Principal

    

Cost of

    

Fair

Portfolio Company (1)(3)

Sector

Type of Investment (4)(7)(9)(10)

    

Amount

Investments (6)

Value

Magnolia Medical Technologies, Inc. (2)(12)

Medical Device

Term Loan (9.75% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25)

5,000

4,941

4,941

Term Loan (9.75% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25)

5,000

4,941

4,941

Term Loan (9.75% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25)

5,000

4,930

4,930

Term Loan (9.75% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25)

5,000

4,930

4,930

Sonex Health, Inc. (2)(12)

Medical Device

Term Loan (9.25% cash (Prime + 6.00%; Floor 9.25%), 5.00% ETP, Due 6/1/24)

2,500

2,382

2,382

Term Loan (9.25% cash (Prime + 6.00%; Floor 9.25%), 5.00% ETP, Due 6/1/24)

2,500

2,463

2,463

Term Loan (9.25% cash (Prime + 6.00%; Floor 9.25%), 5.00% ETP, Due 6/1/24)

2,500

2,463

2,463

Total Non-Affiliate Debt Investments — Life Science

 

  

 

155,482

 

155,438

Non-Affiliate Debt Investments — Technology — 80.8% (8)

Alula Holdings, Inc. (2)(12)

Consumer-related Technologies

Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 1/1/25)

5,000

4,908

4,908

Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 1/1/25)

5,000

4,936

4,936

Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 1/1/25)

3,000

2,961

2,961

Betabrand Corporation (2)(12)

Consumer-related Technologies

Term Loan (10.05% cash (Libor + 7.50%; Floor 10.05%), 5.75% ETP, Due 9/1/23)

3,825

3,774

3,774

Term Loan (10.05% cash (Libor + 7.50%; Floor 10.05%), 5.75% ETP, Due 9/1/23)

3,825

3,780

3,780

Term Loan (10.05% cash (Libor + 7.50%; Floor 10.05%), 5.75% ETP, Due 9/1/23)

1,013

987

987

Clara Foods Co. (2)(12)

Consumer-related Technologies

Term Loan (9.00% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 8/1/25)

2,500

2,442

2,442

Term Loan (9.00% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 8/1/25)

2,500

2,471

2,471

Getaround, Inc. (2)(12)

Consumer-related Technologies

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 4.50% ETP, Due 12/1/24)

10,000

9,809

9,809

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 4.50% ETP, Due 12/1/24)

4,000

3,864

3,864

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 4.50% ETP, Due 12/1/24)

4,000

3,864

3,864

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 4.50% ETP, Due 12/1/24)

3,500

3,404

3,404

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 4.50% ETP, Due 12/1/24)

3,500

3,404

3,404

Primary Kids, Inc. (2)(12)

Consumer-related Technologies

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 3.00% ETP, Due 3/1/25)

3,000

2,933

2,933

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 3.00% ETP, Due 3/1/25)

3,000

2,952

2,952

Quip NYC Inc.

Consumer-related Technologies

Term Loan (11.25% cash (Prime + 8.00%; Floor 11.25%), 3.00% ETP, Due 4/1/26)

10,000

9,575

9,575

Updater, Inc. (2)(12)

Consumer-related Technologies

Term Loan (12.00% cash (Prime + 5.75%; Floor 12.00%, Ceiling 14.00%),0.56% ETP, Due 12/20/24)

5,000

4,951

4,951

Term Loan (12.00% cash (Prime + 5.75%; Floor 12.00%, Ceiling 14.00%), 0.56% ETP, Due 12/20/24)

5,000

4,951

4,951

Term Loan (12.00% cash (Prime + 5.75%; Floor 12.00%, Ceiling 14.00%), 0.56% ETP, Due 12/20/24)

10,000

9,903

9,903

Silk, Inc. (2)(12)

 

Data Storage

 

Term Loan (10.65% cash (Libor + 8.40%; Floor 10.65%), 4.00% ETP, Due 1/1/23)

 

3,667

 

3,631

 

3,631

 

 

Term Loan (10.65% cash (Libor + 8.40%; Floor 10.65%), 4.00% ETP, Due 1/1/23)

 

3,667

 

3,631

3,631

Term Loan (10.65% cash (Libor + 8.40%; Floor 10.65%), 4.00% ETP, Due 7/1/23)

4,667

4,564

4,563

Liqid, Inc.(2)(12)

Networking

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24)

5,000

4,876

4,876

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24)

5,000

4,903

4,903

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24)

2,500

2,448

2,448

See Notes to Consolidated Financial Statements

8


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(Dollars in thousands)

    

    

    

Principal

    

Cost of

    

Fair

Portfolio Company (1)(3)

Sector

Type of Investment (4)(7)(9)(10)

    

Amount

Investments (6)

Value

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24)

2,500

2,448

2,448

BriteCore Holdings, Inc. (2)(12)

Software

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 4.00% ETP, Due 10/1/24)

2,500

2,476

2,476

Term Loan (10.50% cash (Prime + 7.25%; Floor 10.50%), 4.00% ETP, Due 10/1/24)

2,500

2,476

2,476

E La Carte, Inc. (2)(12)

Software

Term Loan (9.75% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 10/1/25)

3,000

2,928

2,928

Term Loan (9.75% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 10/1/25)

3,000

2,949

2,949

Term Loan (9.75% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 10/1/25)

1,500

1,475

1,475

Keypath Education, LLC (2)(12)

Software

Term Loan (10.50% cash (Libor + 8.50%; Floor 10.50%), 2.50% ETP, Due 10/1/24)

3,750

3,587

3,587

Term Loan (10.50% cash (Libor + 8.50%; Floor 10.50%), 2.50% ETP, Due 10/1/24)

3,750

3,690

3,690

Term Loan (10.50% cash (Libor + 8.50%; Floor 10.50%), 2.50% ETP, Due 10/1/24)

2,500

2,460

2,460

OutboundEngine, Inc. (2)(12)

Software

Term Loan (11.15% cash (Libor + 8.40%; Floor 11.15%), 3.63% ETP, Due 7/1/23)

3,600

3,554

3,554

Term Loan (11.15% cash (Libor + 8.40%; Floor 11.15%), 3.63% ETP, Due 7/1/23)

3,150

3,110

3,110

Term Loan (11.15% cash (Libor + 8.40%; Floor 11.15%), 3.63% ETP, Due 7/1/23)

450

454

446

Revinate, Inc. (2)(12)

Software

Term Loan (9.50% cash (Libor + 7.00%; Floor 9.50%), 4.00% ETP, Due 11/1/23)

4,000

3,977

3,910

Term Loan (9.50% cash (Libor + 7.00%; Floor 9.50%), 4.00% ETP, Due 11/1/23)

1,000

991

991

Term Loan (9.50% cash (Libor + 7.00%; Floor 9.50%), 4.00% ETP, Due 11/1/23)

5,000

4,951

4,951

Supply Network Visiblity Holdings LLC (2)(12)

Software

Term Loan (9.75% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 2/1/25)

3,500

3,448

3,448

Term Loan (9.75% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 2/1/25)

3,500

3,448

3,448

Topia Mobility, Inc. (2)(12)

Software

Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 4.00% ETP, Due 9/1/24)

5,000

4,834

4,751

Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 4.00% ETP, Due 9/1/24)

5,000

4,908

4,820

xAd, Inc. (2)(12)

 

Software

 

Term Loan (10.00% cash (Libor + 8.70%; Floor 10.00%), 5.0% ETP, Due 1/1/22)

 

2,708

 

2,686

 

2,686

 

 

Term Loan (10.00% cash (Libor + 8.70%; Floor 10.00%), 5.0% ETP, Due 1/1/22)

 

2,708

 

2,686

2,686

Term Loan (10.00% cash (Libor + 8.70%; Floor 10.00%), 5.0% ETP, Due 1/1/22)

1,625

1,612

1,612

Term Loan (10.00% cash (Libor + 8.70%; Floor 10.00%), 5.0% ETP, Due 1/1/22)

 

1,083

 

1,074

1,074

Total Non-Affiliate Debt Investments — Technology

 

 

 

176,144

175,897

Non-Affiliate Debt Investments — Healthcare information and services — 11.3% (8)

 

  

 

  

 

  

IDbyDNA, Inc.(2)(12)

Diagnostics

Term Loan (9.00% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 1/1/25)

5,000

4,851

4,851

Term Loan (9.00% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 1/1/25)

5,000

4,919

4,919

Kate Farms, Inc. (2)(12)

 

Other Healthcare

 

Term Loan (9.75% cash (Libor + 7.45%; Floor 9.75%), 5.00% ETP, Due 10/1/23)

 

5,000

 

4,946

 

4,946

Term Loan (9.75% cash (Libor + 7.45%; Floor 9.75%), 5.00% ETP, Due 10/1/23)

5,000

4,946

4,946

Term Loan (9.75% cash (Libor + 7.45%; Floor 9.75%), 5.00% ETP, Due 10/1/23)

2,500

2,469

2,469

 

 

Term Loan (9.75% cash (Libor + 7.45%; Floor 9.75%), 5.00% ETP, Due 10/1/23)

 

2,500

 

2,469

2,469

Total Non-Affiliate Debt Investments — Healthcare information and services

 

  

 

24,600

 

24,600

Total Non- Affiliate Debt Investments

 

 

  

 

356,226

 

355,935

Non-Affiliate Warrant Investments — 6.7% (8)

 

  

 

  

 

  

 

  

Non-Affiliate Warrants — Life Science — 1.6% (8)

 

  

 

  

 

  

 

  

Castle Creek Pharmaceuticals, Inc. (2)(12)

Biotechnology

2,428 Preferred Stock Warrants

144

157

Celsion Corporation (2)(5)(12)

 

Biotechnology

 

295,053 Common Stock Warrants

 

 

65

 

117

Corvium, Inc. (2)(12)

Biotechnology

661,956 Preferred Stock Warrants

53

Emalex Biosciences, Inc. (2)(12)

Biotechnology

73,602 Preferred Stock Warrants

107

158

LogicBio, Inc. (2)(5)(12)

Biotechnology

7,843 Common Stock Warrants

8

2

Mustang Bio, Inc. (2)(5)(12)

Biotechnology

252,161 Common Stock Warrants

146

149

Provivi, Inc. (2)(12)

Biotechnology

123,457 Preferred Stock Warrants

147

431

Rocket Pharmaceuticals Corporation (5)(12)

 

Biotechnology

 

7,051 Common Stock Warrants

 

 

16

 

138

Strongbridge U.S. Inc. (2)(5)(12)

 

Biotechnology

 

160,714 Common Stock Warrants

 

 

70

 

93

vTv Therapeutics Inc. (2)(5)(12)

 

Biotechnology

 

95,293 Common Stock Warrants

 

 

44

 

1

See Notes to Consolidated Financial Statements

9


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

March 31, 2021

(Dollars in thousands)

    

    

    

    

Cost of

    

Fair

Portfolio Company (1)(3)

Sector

Type of Investment (4)(7)(9)(10)

    

Investments (6)

Value

AccuVein Inc. (2)(12)

 

Medical Device

 

1,175 Common Stock Warrants

 

 

24

 

Aerin Medical, Inc. (2)(12)

 

Medical Device

 

1,818,183 Preferred Stock Warrants

 

 

66

 

466

Bardy Diagnostics, Inc. (2)(12)

Medical Device

360,000 Preferred Stock Warrants

56

672

Canary Medical Inc. (2)(12)

Medical Device

7,292 Preferred Stock Warrants

54

56

Ceribell, Inc. (2)(12)

Medical Device

117,521 Preferred Stock Warrants

50

119

Conventus Orthopaedics, Inc. (2)(12)

 

Medical Device

 

6,361,111 Preferred Stock Warrants

 

 

149

 

179

CSA Medical, Inc. (2)(12)

 

Medical Device

 

1,375,727 Preferred Stock Warrants

 

 

153

 

155

CVRx, Inc.(2)(12)

Medical Device

750,000 Preferred Stock Warrants

76

76

Infobionic, Inc. (2)(12)

Medical Device

317,647 Preferred Stock Warrants

124

124

MacuLogix, Inc. (2)(12)

 

Medical Device

 

454,460 Preferred Stock Warrants

 

 

236

 

119

Magnolia Medical Technologies, Inc. (2)(12)

Medical Device

378,363 Preferred Stock Warrants

91

94

Meditrina, Inc. (2)(12)

Medical Device

221,510 Preferred Stock Warrants

83

123

Sonex Health, Inc. (2)(12)

Medical Device

484,250 Preferred Stock Warrants

78

79

VERO Biotech LLC (2)(12)

    

Medical Device

    

408 Preferred Stock Warrants

    

    

54

    

52

Total Non-Affiliate Warrants — Life Science

2,094

3,560

Non-Affiliate Warrants — Technology — 4.4% (8)

Intelepeer Holdings, Inc. (2)(12)

 

Communications

 

3,078,084 Preferred and Common Stock Warrants

 

 

138

 

186

PebblePost, Inc. (2)(12)

 

Communications

 

598,850 Preferred Stock Warrants

 

 

92

 

167

Alula Holdings, Inc. (2)(12)

Consumer-related Technologies

20,000 Preferred Stock Warrants

93

94

Betabrand Corporation (2)(12)

Consumer-related Technologies

261,198 Preferred Stock Warrants

106

12

Caastle, Inc. (2)(12)

Consumer-related Technologies

268,591 Preferred Stock Warrants

68

823

Clara Foods Co. (2)(12)

Consumer-related Technologies

46,745 Preferred Stock Warrants

30

30

Getaround, Inc. (2)(12)

Consumer-related Technologies

651,040 Preferred Stock Warrants

450

462

Mohawk Group Holdings, Inc. (2)(5)(12)

 

Consumer-related Technologies

76,923 Common Stock Warrants

 

 

195

 

1,115

Primary Kids, Inc. (2)(12)

Consumer-related Technologies

553,778 Preferred Stock Warrants

57

57

Quip NYC Inc. (2)(12)

Consumer-related Technologies

6,191 Preferred Stock Warrants

325

325

Updater, Inc.(2)(12)

Consumer-related Technologies

108,333 Common Stock Warrants

34

72

CPG Beyond, Inc. (2)(12)

Data Storage

500,000 Preferred Stock Warrants

242

704

Silk, Inc. (2)(12)

 

Data Storage

 

44,211,003 Preferred and Common Stock Warrants

 

 

233

 

202

Global Worldwide LLC (2)(12)

Internet and Media

245,810 Preferred Stock Warrants

75

9

Rocket Lawyer Incorporated (2)(12)

 

Internet and Media

 

261,721 Preferred Stock Warrants

 

 

92

 

89

Skillshare, Inc. (2)(12)

Internet and Media

139,073 Preferred Stock Warrants

162

2,412

Liqid, Inc.(2)(12)

Networking

284,599 Preferred Stock Warrants

189

193

Kinestral, Inc. (2)(12)

 

Power Management

 

5,002,574 Preferred Stock Warrants

 

 

1,585

 

1,326

Avalanche Technology, Inc. (2)(12)

 

Semiconductors

 

6,753 Preferred and Common Stock Warrants

 

 

101

 

BriteCore Holdings, Inc. (2)(12)

Software

12,857 Preferred Stock Warrants

5

11

E La Carte, Inc. (2)(12)

Software

181,947 Preferred Stock Warrants

60

60

Education Elements, Inc. (2)(12)

 

Software

 

238,121 Preferred Stock Warrants

 

 

28

 

27

Keypath Education, Inc.(2)(12)

Software

900,000 Preferred Stock Warrants

157

513

Lotame Solutions, Inc. (2)(12)

 

Software

 

288,115 Preferred Stock Warrants

 

 

19

 

276

OutboundEngine, Inc. (2)(12)

 

Software

 

620,000 Preferred Stock Warrants

 

 

80

 

33

Revinate, Inc. (2)(12)

Software

615,475 Preferred Stock Warrants

45

54

Riv Data Corp. (2)(12)

 

Software

 

321,428 Preferred Stock Warrants

 

 

13

 

287

SIGNiX, Inc. (12)

 

Software

 

186,045 Preferred Stock Warrants

 

 

225

 

Skyword, Inc. (12)

 

Software

 

301,055 Preferred and Common Stock Warrants

 

 

49

 

8

Supply Network Visiblity Holdings LLC (2)(12)

Software

398 Preferred Stock Warrants

38

38

Topia Mobility, Inc. (2)(12)

Software

3,049,607 Preferred Stock Warrants

139

xAd, Inc. (2)(12)

 

Software

 

4,343,348 Preferred Stock Warrants

 

 

178

 

3

Total Non-Affiliate Warrants — Technology

 

 

5,303

 

9,588

Non-Affiliate Warrants — Healthcare information and services — 0.7% (8)

IDbyDNA, Inc.(2)(12)

Diagnostics

363,082 Preferred Stock Warrants

91

  

93

Kate Farms, Inc. (2)(12)

Other Healthcare

82,965 Preferred Stock Warrants

102

1,176

Watermark Medical, Inc. (2)(12)

 

Other Healthcare

 

27,373 Preferred Stock Warrants

 

 

74

 

Medsphere Systems Corporation (2)(12)

 

Software

 

7,097,792 Preferred Stock Warrants

 

 

60

 

196

Total Non-Affiliate Warrants — Healthcare information and services

 

 

327

 

1,465

Total Non-Affiliate Warrants