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 JUNE 30, 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 July 27, 2021 was 20,026,129.

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 June 30, 2021 (unaudited) and December 31, 2020

3

Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (unaudited)

4

Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2021 and 2020 (unaudited)

5

Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (unaudited)

6

Consolidated Schedules of Investments as of June 30, 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

44

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

62

Item 4.

Controls and Procedures

63

PART II

64

Item 1.

Legal Proceedings

64

Item 1A.

Risk Factors

64

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

64

Item 3.

Defaults Upon Senior Securities

64

Item 4.

Mine Safety Disclosures

64

Item 5.

Other Information

64

Item 6.

Exhibits

65

Signatures

66

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)

June 30, 

December 31, 

    

2021

    

2020

Assets

 

(Unaudited)

 

  

Non-affiliate investments at fair value (cost of $393,365 and $343,158, respectively)

$

399,935

$

343,498

Non-controlled affiliate investments at fair value (cost of $3,477 and $6,854, respectively) (Note 5)

 

2,686

 

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 $398,342 and $351,512, respectively) (Note 4)

 

404,121

 

352,545

Cash

 

26,737

 

19,502

Investments in money market funds

 

13,096

 

27,199

Restricted investments in money market funds

 

1,502

 

1,057

Interest receivable

 

6,099

 

4,946

Other assets

 

2,563

 

1,908

Total assets

$

454,118

$

407,157

Liabilities

 

  

 

  

Borrowings (Note 7)

$

220,202

$

185,819

Distributions payable

 

6,007

 

5,786

Base management fee payable (Note 3)

 

634

 

563

Incentive fee payable (Note 3)

 

1,528

 

975

Other accrued expenses

 

1,483

 

1,417

Total liabilities

 

229,854

 

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 June 30, 2021 and December 31, 2020

 

 

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 20,191,706 and 19,453,821 shares issued and 20,024,241 and 19,286,356 shares outstanding as of June 30, 2021 and December 31, 2020, respectively

 

20

 

19

Paid-in capital in excess of par

 

282,136

 

271,287

Distributable earnings

 

(57,892)

 

(58,709)

Total net assets

 

224,264

 

212,597

Total liabilities and net assets

$

454,118

$

407,157

Net asset value per common share

$

11.20

$

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

For the Six Months Ended

June 30, 

June 30, 

    

2021

    

2020

    

2021

    

2020

    

Investment income

 

  

 

  

 

  

 

  

 

Interest income on investments

 

  

 

  

 

  

 

  

 

Interest income on non-affiliate investments

$

12,420

$

11,918

$

24,909

$

21,312

Interest income on affiliate investments

 

62

 

176

 

235

 

357

Total interest income on investments

 

12,482

 

12,094

 

25,144

 

21,669

Fee income

 

  

 

  

 

  

 

  

Prepayment fee income on non-affiliate investments

913

711

1,256

756

Amendment fee income on non-affiliate investments

 

43

 

1,028

 

236

 

1,064

Fee income on non-affiliate investments

 

51

 

 

56

 

24

Fee income on affiliate investments

 

 

3

 

12

 

7

Total fee income

 

1,007

 

1,742

 

1,560

 

1,851

Dividend (expense) income

 

  

 

  

 

  

 

  

Dividend (expense) income on controlled affiliate investments

 

 

(312)

 

 

118

Total dividend (expense) income

 

 

(312)

 

 

118

Total investment income

 

13,489

 

13,524

 

26,704

 

23,638

Expenses

 

  

 

  

 

  

 

  

Interest expense

 

2,954

 

2,561

 

5,669

 

4,723

Base management fee (Note 3)

 

1,829

 

1,668

 

3,598

 

3,249

Performance based incentive fee (Note 3)

 

1,528

 

1,676

 

3,029

 

2,747

Administrative fee (Note 3)

 

289

 

254

 

578

 

507

Professional fees

 

280

 

346

 

789

 

848

General and administrative

 

442

 

313

 

808

 

575

Total expenses

 

7,322

 

6,818

 

14,471

 

12,649

Net investment income before excise tax

 

6,167

 

6,706

 

12,233

 

10,989

Provision for excise tax

 

56

 

 

118

 

Net investment income

 

6,111

 

6,706

 

12,115

 

10,989

Net realized and unrealized (loss) gain

 

  

 

  

 

  

 

  

Net realized gain (loss) on non-affiliate investments

 

1,492

 

(701)

 

(3,716)

 

2,778

Net realized loss on controlled affiliate investments

(24)

(12)

Net realized gain (loss) on investments

 

1,492

 

(725)

 

(3,716)

 

2,766

Net realized loss on extinguishment of debt

(395)

(395)

Net realized and unrealized gain (loss)

1,097

(725)

(4,111)

2,766

Net unrealized (depreciation) appreciation on non-affiliate investments

 

122

 

2,985

 

6,385

 

(4,806)

Net unrealized depreciation on non-controlled affiliate investments

 

(600)

 

(932)

 

(1,639)

 

(1,475)

Net unrealized depreciation on controlled affiliate investments

 

 

(109)

 

 

(258)

Net unrealized (depreciation) appreciation on investments

 

(478)

 

1,944

 

4,746

 

(6,539)

Net realized and unrealized (loss) gain

 

619

 

1,219

 

635

 

(3,773)

Net increase in net assets resulting from operations

$

6,730

$

7,925

$

12,750

$

7,216

Net investment income per common share

$

0.31

$

0.40

$

0.62

$

0.65

Net increase in net assets per common share

$

0.34

$

0.47

$

0.65

$

0.43

Distributions declared per share

$

0.30

$

0.30

$

0.60

$

0.65

Weighted average shares outstanding

 

19,834,050

 

16,943,155

 

19,601,607

 

16,829,821

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 March 31, 2020

 

16,852,610

$

17

$

242,886

(49,446)

$

193,457

Issuance of common stock, net of offering costs

432,491

4,971

4,971

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

 

  

 

 

  

 

  

 

  

Net investment income, net of excise tax

 

 

 

 

6,706

 

6,706

Net realized loss on investments

 

 

 

 

(725)

 

(725)

Net unrealized appreciation on investments

 

 

 

 

1,944

 

1,944

Issuance of common stock under dividend reinvestment plan

 

6,669

 

 

67

 

 

67

Distributions declared

 

 

 

 

(5,188)

 

(5,188)

Balance at June 30, 2020

 

17,291,770

17

247,924

(46,709)

201,232

Balance at March 31, 2021

19,657,815

20

276,239

(58,588)

217,671

Issuance of common stock, net of offering costs

 

361,308

 

 

5,811

 

 

5,811

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

 

  

 

  

 

  

 

  

 

  

Net investment income, net of excise tax

 

6,111

6,111

Net realized gain on investments

 

 

 

 

1,492

 

1,492

Net realized loss on extinguishment of debt

(395)

(395)

Net unrealized depreciation on investments

 

 

 

 

(478)

 

(478)

Issuance of common stock under dividend reinvestment plan

 

5,118

 

 

86

 

 

86

Distributions declared

 

 

 

 

(6,034)

 

(6,034)

Balance at June 30, 2021

 

20,024,241

$

20

$

282,136

$

(57,892)

$

224,264

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

 

1,717,901

 

1

 

21,147

 

 

21,148

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

 

  

 

  

 

  

 

  

 

  

Net investment income, net of excise tax

 

10,989

10,989

Net realized gain on investments

 

 

 

 

2,766

 

2,766

Net unrealized depreciation on investments

 

 

 

 

(6,539)

 

(6,539)

Issuance of common stock under dividend reinvestment plan

 

10,579

 

 

117

 

 

117

Distributions declared

 

 

 

 

(11,304)

 

(11,304)

Balance at June 30, 2020

 

17,291,770

17

247,924

(46,709)

201,232

Balance at December 31, 2020

19,286,356

19

271,287

(58,709)

$

212,597

Issuance of common stock, net of offering costs

 

727,448

 

1

 

10,688

 

 

10,689

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

 

  

 

  

 

  

 

  

 

  

Net investment income, net of excise tax

 

12,115

12,115

Net realized loss on investments

 

 

 

 

(3,716)

 

(3,716)

Net realized loss on extinguishment of debt

(395)

(395)

Net unrealized appreciation on investments

 

 

 

 

4,746

 

4,746

Issuance of common stock under dividend reinvestment plan

 

10,437

 

 

161

 

 

161

Distributions declared

 

 

 

 

(11,933)

 

(11,933)

Balance at June 30, 2021

 

20,024,241

$

20

$

282,136

$

(57,892)

$

224,264

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 six months ended June 30, 

    

2021

    

2020

Cash flows from operating activities:

 

  

 

  

Net increase in net assets resulting from operations

$

12,750

$

7,216

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

 

 

Amortization of debt issuance costs

 

494

 

555

Net realized loss (gain) on investments

 

3,716

 

(2,766)

Net realized loss on extinguishment of debt

395

Net unrealized (appreciation) depreciation on investments

 

(4,746)

 

6,539

Purchase of investments

 

(118,660)

 

(105,554)

Principal payments received on investments

 

65,672

 

61,168

Proceeds from sale of investments

3,732

6,256

Dividends from controlled affiliate investment

 

 

(118)

Warrants received in settlement of fee income

 

 

(978)

Changes in assets and liabilities:

 

  

 

  

(Increase) decrease in interest receivable

 

(625)

 

250

Increase in end-of-term payments

 

(838)

 

(1,398)

Decrease in unearned income

 

(800)

 

(876)

Increase in other assets

 

(391)

 

(59)

Increase (decrease) in other accrued expenses

 

66

 

(48)

Increase in base management fee payable

 

71

 

48

Increase in incentive fee payable

 

553

 

63

Net cash used in operating activities

 

(38,611)

 

(29,702)

Cash flows from financing activities:

 

  

 

  

Proceeds from issuance of senior notes

57,500

Repayment of 2022 Notes

(37,375)

Proceeds from issuance of common stock, net of offering costs

 

10,688

 

21,148

Advances on Credit Facilities

 

51,500

 

58,250

Repayment of Credit Facilities

 

(36,000)

 

(17,000)

Debt issuance costs

(2,575)

(888)

Distributions paid

 

(11,550)

 

(10,668)

Net cash provided by financing activities

 

32,188

 

50,842

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(6,423)

 

21,140

Cash, cash equivalents and restricted cash:

 

  

 

  

Beginning of period

 

47,758

 

17,385

End of period

$

41,335

$

38,525

Supplemental disclosure of cash flow information:

 

  

 

  

Cash paid for interest

$

5,084

$

4,078

Supplemental non-cash investing and financing activities:

 

  

 

  

Warrant investments received and recorded as unearned income

$

1,265

$

750

Distributions payable

$

6,007

$

5,188

Acquisition of controlled affiliate investment

16,498

End-of-term payments receivable

$

4,731

$

5,298

Non-cash income

$

2,621

$

3,504

Six months ended June 30, 

    

2021

    

2020

Cash

$

26,737

$

22,837

Investments in money market funds

 

13,096

 

14,499

Restricted investments in money market funds

 

1,502

 

1,189

Total cash, cash equivalents and restricted cash

$

41,335

$

38,525

See Notes to Consolidated Financial Statements

6


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

June 30, 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 — 179.0% (8)

 

  

 

  

 

  

 

  

 

  

Non-Affiliate Debt Investments — 172.3% (8)

 

  

 

  

 

  

 

  

Non-Affiliate Debt Investments — Life Science — 81.6% (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

$

4,894

$

4,894

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

5,000

4,948

4,948

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

5,000

4,948

4,948

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

5,000

4,948

4,948

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

Biotechnology

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 1/1/25)

5,000

4,574

4,574

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 1/1/25)

5,000

4,894

4,894

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 1/1/25)

2,500

2,447

2,447

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

2,361

2,361

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

2,500

2,461

2,461

F-Star Therapeutics, Inc. (2)(5)(12)

Biotechnology

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 4/1/25)

2,500

2,460

2,460

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 7/1/25)

2,500

2,457

2,457

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

4,841

4,841

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

4,849

4,849

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

5,000

4,923

4,923

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

2,500

2,430

2,430

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

2,500

2,430

2,430

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

4,951

4,951

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

5,000

4,951

4,951

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

1,000

990

990

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

1,000

990

990

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

1,000

990

990

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

1,000

990

990

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

1,000

990

990

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

5,000

4,951

4,951

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

2,500

2,476

2,476

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

2,500

2,476

2,476

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

2,387

2,387

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

4,886

4,886

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

5,000

4,950

4,950

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)

 

4,636

 

4,581

 

4,581

 

 

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

 

4,636

 

4,581

4,581

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

2,485

2,485

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

 

3,712

 

3,712

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

3,962

3,962

See Notes to Consolidated Financial Statements

7


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

June 30, 2021

(Dollars in thousands)

    

    

    

Principal

    

Cost of

    

Fair

Portfolio Company (1)(3)

Sector

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

    

Amount

Investments (6)

Value

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

Medical Device

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

5,000

4,955

4,955

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

5,000

4,955

4,955

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

5,000

4,955

4,955

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

5,000

4,955

4,955

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

3,341

3,341

MacuLogix, Inc. (2)(12)

 

Medical Device

 

Term Loan (10.08% cash (Libor + 7.68%; Floor 10.08%), 6.00% ETP, Due 10/1/23)

 

7,500

 

7,436

 

7,436

 

 

Term Loan (10.08% cash (Libor + 7.68%; Floor 10.08%), 6.00% ETP, Due 10/1/23)

 

4,050

 

4,016

4,016

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

4,945

4,945

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

5,000

4,945

4,945

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

5,000

4,935

4,935

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

5,000

4,935

4,935

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

2,386

2,386

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

2,500

2,466

2,466

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

2,500

2,466

2,466

Total Non-Affiliate Debt Investments — Life Science

 

  

 

181,582

 

181,582

Non-Affiliate Debt Investments — Sustainability — 4.1% (8)

LiquiGlide, Inc. (2)(12)

Waste Recycling

Term Loan (9.50% cash (Prime + 6.25%; Floor 9.50%), 5.00% ETP, Due 1/1/25)

2,000

1,921

1,921

Temperpack Technologies, Inc. (2)(12)

Waste Recycling

Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 2.50% ETP, Due 6/1/25)

3,750

3,510

3,510

Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 2.50% ETP, Due 6/1/25)

3,750

3,696

3,696

Total Non-Affiliate Debt Investments — Sustainability

9,127

9,127

Non-Affiliate Debt Investments — Technology — 82.2% (8)

Axiom Space, Inc. (2)(12)

Communications

Term Loan (9.25% cash (Prime + 6.00%; Floor 9.25%), 2.50% ETP, Due 6/1/26)

7,500

7,436

7,436

Term Loan (9.25% cash (Prime + 6.00%; Floor 9.25%), 2.50% ETP, Due 6/1/26)

7,500

7,436

7,436

Term Loan (9.25% cash (Prime + 6.00%; Floor 9.25%), 2.50% ETP, Due 6/1/26)

7,500

7,436

7,436

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

4,914

4,748

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

5,000

4,941

4,775

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

3,000

2,964

2,864

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)

3,604

3,615

3,287

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

3,604

3,619

3,291

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

954

946

862

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

2,444

2,444

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

2,500

2,472

2,472

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

9,822

9,822

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

4,000

3,874

3,874

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

4,000

3,874

3,874

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

3,500

3,410

3,410

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

3,500

3,410

3,410

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

2,936

2,936

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

3,000

2,955

2,955

See Notes to Consolidated Financial Statements

8


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

June 30, 2021

(Dollars in thousands)

    

    

    

Principal

    

Cost of

    

Fair

Portfolio Company (1)(3)

Sector

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

    

Amount

Investments (6)

Value

Quip NYC Inc. (2)(12)

Consumer-related Technologies

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

10,000

9,596

9,596

Unagi, Inc. (2)(12)

Consumer-related Technologies

Term Loan (11.00% cash (Prime + 7.75%; Floor 11.00%), Due 7/1/25)

2,500

2,432

2,432

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

4,955

4,955

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

5,000

4,955

4,955

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

10,000

9,909

9,909

Silk, Inc. (2)(12)

 

Data Storage

 

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

 

3,000

 

3,136

 

3,136

 

 

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

 

3,000

 

3,136

3,136

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

4,000

4,075

4,075

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

4,883

4,883

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

5,000

4,910

4,910

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

2,500

2,452

2,452

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

2,500

2,452

2,452

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

2,478

2,478

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

2,500

2,478

2,478

Decisyon, Inc. (12)

 

Software

 

Term Loan (12.50% cash (Libor + 12.308%; Floor 12.50%), 12.00% ETP, Due 6/1/21)

1,182

1,181

1,181

 

 

Term Loan (12.50% cash (Libor + 12.308%; Floor 12.50%), 12.00% ETP, Due 6/1/21)

 

646

 

646

646

 

Term Loan (12.02% cash, Due 6/1/21)

239

227

227

 

 

Term Loan (12.03% cash, Due 6/1/21)

 

238

 

227

227

 

 

Term Loan (12.24% cash, Due 6/1/21)

 

705

 

685

685

 

 

Term Loan (13.08% cash, Due 6/1/21)

 

276

 

276

276

 

 

Term Loan (13.10% cash, Due 6/1/21)

 

184

 

184

184

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

2,931

2,931

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

3,000

2,952

2,952

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

1,500

1,476

1,476

OutboundEngine, Inc. (2)(12)

Software

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

3,200

3,160

3,160

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

2,800

2,765

2,765

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

400

404

397

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

4,040

3,972

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

1,000

992

992

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

5,000

4,956

4,956

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

3,451

3,451

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

3,500

3,451

3,451

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

4,915

4,765

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

5,000

4,915

4,765

Total Non-Affiliate Debt Investments — Technology

 

 

 

184,185

182,638

Non-Affiliate Debt Investments — Healthcare information and services — 4.4% (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

4,856

4,856

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

5,000

4,925

4,925

Total Non-Affiliate Debt Investments — Healthcare information and services

 

  

 

9,781

 

9,781

Total Non- Affiliate Debt Investments

 

 

  

 

384,675

 

383,128

Non-Affiliate Warrant Investments — 6.4% (8)

 

  

 

  

 

  

 

  

Non-Affiliate Warrants — Life Science — 1.8% (8)

 

  

 

  

 

  

 

  

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

Biotechnology

2,428 Preferred Stock Warrants

144

157

See Notes to Consolidated Financial Statements

9


Table of Contents

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Schedule of Investments (Unaudited)

June 30, 2021

(Dollars in thousands)