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, 2022 | |
| |
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 May 3, 2022 was 23,980,358.
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 | ||
| | | | |
HORIZON TECHNOLOGY FINANCE CORPORATION
FORM 10-Q
2
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, | ||
|
| 2022 |
| 2021 | ||
Assets |
| |
| |
| |
Non-affiliate investments at fair value (cost of $511,607 and $452,387, respectively) | | $ | 515,009 | | $ | 458,075 |
Controlled affiliate investments at fair value (cost of $1,400 and $1,450, respectively) (Note 5) | |
| — | |
| — |
Total investments at fair value (cost of $513,007 and $453,837, respectively) (Note 4) | |
| 515,009 | |
| 458,075 |
Cash | |
| 12,452 | |
| 38,054 |
Investments in money market funds | |
| 2,011 | |
| 7,868 |
Restricted investments in money market funds | |
| 1,515 | |
| 1,359 |
Interest receivable | |
| 8,305 | |
| 6,154 |
Other assets | |
| 2,252 | |
| 2,450 |
Total assets | | $ | 541,544 | | $ | 513,960 |
| | | | | | |
Liabilities | |
|
| |
|
|
Borrowings (Note 7) | | $ | 250,501 | | $ | 257,613 |
Distributions payable | |
| 7,193 | |
| 6,365 |
Base management fee payable (Note 3) | |
| 785 | |
| 706 |
Incentive fee payable (Note 3) | |
| 1,424 | |
| 2,015 |
Other accrued expenses | |
| 1,652 | |
| 1,926 |
Total liabilities | |
| 261,555 | |
| 268,625 |
| | | | | | |
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, 2022 and December 31, 2021 | |
| — | |
| — |
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 24,144,602 and 21,384,925 shares issued and 23,977,137 and 21,217,460 shares outstanding as of March 31, 2022 and December 31, 2021, respectively | |
| 25 | |
| 22 |
Paid-in capital in excess of par | |
| 339,688 | |
| 301,359 |
Distributable earnings | |
| (59,724) | |
| (56,046) |
Total net assets | |
| 279,989 | |
| 245,335 |
Total liabilities and net assets | | $ | 541,544 | | $ | 513,960 |
Net asset value per common share | | $ | 11.68 | | $ | 11.56 |
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 | | | ||||
| | March 31, | | | ||||
|
| 2022 |
| 2021 |
|
| ||
Investment income |
| |
|
| |
|
|
|
Interest income on investments |
| |
|
| |
|
|
|
Interest income on non-affiliate investments | | $ | 13,853 | | $ | 12,490 |
| |
Interest income on affiliate investments | |
| — | |
| 172 |
| |
Total interest income on investments | |
| 13,853 | |
| 12,662 |
| |
Fee income | |
| | |
|
|
| |
Fee income on non-affiliate investments | |
| 351 | |
| 541 |
| |
Fee income on affiliate investments | |
| — | |
| 12 |
| |
Total fee income | |
| 351 | |
| 553 |
| |
Total investment income | |
| 14,204 | |
| 13,215 |
| |
Expenses | |
|
| |
|
|
| |
Interest expense | |
| 3,424 | |
| 2,715 |
| |
Base management fee (Note 3) | |
| 2,244 | |
| 1,771 |
| |
Performance based incentive fee (Note 3) | |
| 1,424 | |
| 1,501 |
| |
Administrative fee (Note 3) | |
| 362 | |
| 289 |
| |
Professional fees | |
| 577 | |
| 509 |
| |
General and administrative | |
| 344 | |
| 365 |
| |
Total expenses | |
| 8,375 | |
| 7,150 |
| |
Net investment income before excise tax | |
| 5,829 | |
| 6,065 |
| |
Provision for excise tax | |
| 100 | |
| 62 |
| |
Net investment income | |
| 5,729 | |
| 6,003 |
| |
Net realized and unrealized (loss) gain | |
|
| |
|
|
| |
Net realized gain (loss) on non-affiliate investments | |
| 30 | |
| (5,208) |
| |
Net realized gain (loss) on investments | |
| 30 | |
| (5,208) |
| |
Net unrealized (depreciation) appreciation on non-affiliate investments | |
| (2,287) | |
| 6,263 |
| |
Net unrealized depreciation on non-controlled affiliate investments | |
| — | |
| (1,039) |
| |
Net unrealized appreciation on controlled affiliate investments | |
| 50 | |
| — |
| |
Net unrealized (depreciation) appreciation on investments | |
| (2,237) | |
| 5,224 |
| |
Net realized and unrealized (loss) gain | |
| (2,207) | |
| 16 |
| |
Net increase in net assets resulting from operations | | $ | 3,522 | | $ | 6,019 |
| |
Net investment income per common share | | $ | 0.26 | | $ | 0.31 |
| |
Net increase in net assets resulting from operations per common share | | $ | 0.16 | | $ | 0.31 |
| |
Distributions declared per share | | $ | 0.30 | | $ | 0.30 |
| |
Weighted average shares outstanding | |
| 21,904,160 | |
| 19,366,581 |
| |
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)
| | | | | | | Paid-In Capital | | | | | | | |
| | Common Stock | | in Excess of | | Distributable | | Total Net | ||||||
|
| Shares |
| Amount |
| Par |
| Earnings |
| Assets | ||||
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 |
| | | | | | | | | | | | | | |
Balance at December 31, 2021 | | 21,217,460 | | | 22 | | | 301,359 | | | (56,046) | | | 245,335 |
Issuance of common stock, net of offering costs |
| 2,750,171 | |
| 3 | |
| 38,184 | |
| — | |
| 38,187 |
Net increase in net assets resulting from operations, net of excise tax: |
|
| |
|
| |
|
| |
|
| |
|
|
Net investment income, net of excise tax |
| — | | | — | | | — | | | 5,729 | | | 5,729 |
Net realized gain on investments |
| — | |
| — | |
| — | |
| 30 | |
| 30 |
Net unrealized depreciation on investments |
| — | |
| — | |
| — | |
| (2,237) | |
| (2,237) |
Issuance of common stock under dividend reinvestment plan |
| 9,506 | |
| — | |
| 145 | |
| — | |
| 145 |
Distributions declared |
| — | |
| — | |
| — | |
| (7,200) | |
| (7,200) |
Balance at March 31, 2022 |
| 23,977,137 | | $ | 25 | | $ | 339,688 | | $ | (59,724) | | $ | 279,989 |
See Notes to Consolidated Financial Statements
5
Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
| | For the three months ended March 31, | |||||
|
| 2022 |
| 2021 | | ||
Cash flows from operating activities: |
| |
|
| |
|
|
Net increase in net assets resulting from operations | | $ | 3,522 | | $ | 6,019 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |
| | |
| | |
Amortization of debt issuance costs | |
| 336 | |
| 236 | |
Net realized (gain) loss on investments | |
| (30) | |
| 5,208 | |
Net unrealized depreciation (appreciation) on investments | |
| 2,237 | |
| (5,224) | |
Purchase of investments | |
| (94,485) | |
| (51,375) | |
Principal payments received on investments | |
| 14,145 | |
| 24,132 | |
Proceeds from sale of investments | | | 21,280 | | | 873 | |
Changes in assets and liabilities: | |
|
| |
|
| |
Increase in interest receivable | |
| (866) | |
| (368) | |
Increase in end-of-term payments | |
| (1,285) | |
| (817) | |
Decrease in unearned income | |
| (81) | |
| (603) | |
Decrease (increase) in other assets | |
| 652 | |
| (41) | |
(Decrease) increase in other accrued expenses | |
| (274) | |
| 468 | |
Increase in base management fee payable | |
| 79 | |
| 37 | |
(Decrease) increase in incentive fee payable | |
| (591) | |
| 526 | |
Net cash used in operating activities | |
| (55,361) | |
| (20,929) | |
Cash flows from financing activities: | |
|
| |
|
| |
Proceeds from issuance of 2026 Notes | | | — | | | 57,500 | |
Repayment of Asset-Backed Notes | | | (12,352) | | | — | |
Proceeds from issuance of common stock, net of offering costs | |
| 38,187 | |
| 4,877 | |
Advances on Credit Facilities | |
| 25,000 | |
| 36,500 | |
Repayment of Credit Facilities | |
| (20,000) | |
| (36,000) | |
Debt issuance costs | | | (550) | | | (1,886) | |
Distributions paid | |
| (6,227) | |
| (5,711) | |
Net cash provided by financing activities | |
| 24,058 | |
| 55,280 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | |
| (31,303) | |
| 34,351 | |
Cash, cash equivalents and restricted cash: | |
|
| |
|
| |
Beginning of period | |
| 47,281 | |
| 47,758 | |
End of period | | $ | 15,978 | | $ | 82,109 | |
| | | | | | | |
Supplemental disclosure of cash flow information: |
| |
|
| |
|
|
Cash paid for interest | | $ | 3,044 | | $ | 2,274 | |
Supplemental non-cash investing and financing activities: | |
|
| |
|
| |
Warrant investments received and recorded as unearned income | | $ | 1,174 | | $ | 679 | |
Distributions payable | | $ | 7,193 | | $ | 5,897 | |
End-of-term payments receivable | | $ | 6,522 | | $ | 4,710 | |
Non-cash income | | $ | 1,424 | | $ | 1,478 | |
| | | | | | | |
| | Three months ended March 31, | |||||
|
| 2022 |
| 2021 |
| ||
Cash | | $ | 12,452 | | $ | 70,386 | |
Investments in money market funds | |
| 2,011 | |
| 10,184 | |
Restricted investments in money market funds | |
| 1,515 | |
| 1,539 | |
Total cash, cash equivalents and restricted cash | | $ | 15,978 | | $ | 82,109 | |
See Notes to Consolidated Financial Statements
6
Horizon Technology Finance Corporation and Subsidiaries
Consolidated Schedule of Investments (Unaudited)
March 31, 2022
(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 — 183.7% (8) |
|
|
|
|
| |
|
| |
|
| |
|
Non-Affiliate Debt Investments — 175.8% (8) |
|
|
| |
|
| |
|
| |
| ||
Non-Affiliate Debt Investments — Life Science — 75.2% (8) |
|
|
| |
|
| |
|
| |
| ||
Avalo Therapeutics, Inc. (2)(5)(12) | | Biotechnology | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 1/1/25) | | $ | 5,000 | | $ | 4,916 | | $ | 4,916 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 1/1/25) | | | 5,000 | | | 4,916 | | | 4,916 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 1/1/25) | | | 2,500 | | | 2,458 | | | 2,458 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 2/1/25) | | | 5,000 | | | 4,914 | | | 4,914 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 2/1/25) | | | 5,000 | | | 4,914 | | | 4,914 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 4/1/25) | | | 2,500 | | | 2,454 | | | 2,454 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 3.0% ETP, Due 4/1/25) | | | 2,500 | | | 2,454 | | | 2,454 |
Castle Creek Biosciences, Inc.(2)(12) | | Biotechnology | | Term Loan (9.55% cash (Prime + 6.05%; Floor 9.30%), 5.00% ETP, Due 3/1/24) | | | 5,000 | | | 4,962 | | | 4,962 |
| | | | Term Loan (9.55% cash (Prime + 6.05%; Floor 9.30%), 5.00% ETP, Due 3/1/24) | | | 5,000 | | | 4,962 | | | 4,962 |
| | | | Term Loan (9.55% cash (Prime + 6.05%; Floor 9.30%), 5.00% ETP, Due 3/1/24) | | | 5,000 | | | 4,962 | | | 4,962 |
| | | | Term Loan (9.55% cash (Prime + 6.05%; Floor 9.30%), 5.00% ETP, Due 3/1/24) | | | 5,000 | | | 4,962 | | | 4,962 |
| | | | Term Loan (9.55% cash (Prime + 6.05%; Floor 9.30%), 5.00% ETP, Due 2/1/26) | | | 2,500 | | | 2,473 | | | 2,473 |
| | | | Term Loan (9.55% cash (Prime + 6.05%; Floor 9.30%), 5.00% ETP, Due 2/1/26) | | | 2,500 | | | 2,473 | | | 2,473 |
Emalex Biosciences, Inc. (2)(12) | | Biotechnology | | Term Loan (9.75% cash (Libor + 7.90%; Floor 9.75%), 5.00% ETP, Due 6/1/24) | | | 2,500 | | | 2,423 | | | 2,423 |
| | | | Term Loan (9.75% cash (Libor + 7.90%; Floor 9.75%), 5.00% ETP, Due 6/1/24) | | | 2,500 | | | 2,475 | | | 2,475 |
| | | | Term Loan (9.75% cash (Libor + 7.90%; Floor 9.75%), 5.00% ETP, Due 11/1/25) | | | 5,000 | | | 4,902 | | | 4,902 |
F-Star Therapeutics, Inc. (2)(5)(12) | | Biotechnology | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 4/1/25) | | | 2,500 | | | 2,468 | | | 2,468 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 7/1/25) | | | 2,500 | | | 2,465 | | | 2,465 |
Greenlight Biosciences, Inc. (2)(5)(12) | | Biotechnology | | Term Loan (9.25% cash (Prime + 6.25%; Floor 9.00%), 3.00% ETP, Due 7/1/25) | | | 5,000 | | | 4,568 | | | 4,568 |
| | | | Term Loan (9.25% cash (Prime + 6.25%; Floor 9.00%), 3.00% ETP, Due 7/1/25) | | | 2,500 | | | 2,409 | | | 2,409 |
IMV Inc. (2)(5)(12) | | Biotechnology | | Term Loan (9.25% cash (Prime + 6.25%; Floor 9.00%), 5.00% ETP, Due 7/1/25) | | | 5,000 | | | 4,804 | | | 4,804 |
| | | | Term Loan (9.25% cash (Prime + 6.25%; Floor 9.00%), 5.00% ETP, Due 7/1/25) | | | 2,500 | | | 2,465 | | | 2,465 |
LogicBio, Inc.(2)(5)(12) | | Biotechnology | | Term Loan (8.75% cash (Libor + 6.25%; Floor 8.75%), 4.50% ETP, Due 6/1/24) | | | 3,611 | | | 3,596 | | | 3,596 |
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 | | | 4,940 | | | 4,940 |
| | | | Term Loan (9.50% cash (Libor + 8.50%; Floor 9.50%), 5.50% ETP, Due 12/1/24) | | | 5,000 | | | 4,940 | | | 4,940 |
| | | | Term Loan (9.50% cash (Libor + 8.50%; Floor 9.50%), 5.50% ETP, Due 12/1/24) | | | 2,500 | | | 2,445 | | | 2,445 |
| | | | Term Loan (9.50% cash (Libor + 8.50%; Floor 9.50%), 5.50% ETP, Due 12/1/24) | | | 2,500 | | | 2,445 | | | 2,445 |
| | | | Term Loan (9.50% cash (Libor + 8.50%; Floor 9.50%), 5.50% ETP, Due 12/1/24) | | | 2,500 | | | 2,436 | | | 2,436 |
| | | | Term Loan (9.50% cash (Libor + 8.50%; Floor 9.50%), 5.50% ETP, Due 12/1/24) | | | 2,500 | | | 2,436 | | | 2,436 |
Stealth Biotherapeutics Inc. (2)(5)(12) | | Biotechnology | | Term Loan (9.00% cash (Prime + 5.50%; Floor 8.75%), 6.0% ETP, Due 10/1/25) | | | 5,000 | | | 4,639 | | | 4,639 |
| | | | Term Loan (9.00% cash (Prime + 5.50%; Floor 8.75%), 6.0% ETP, Due 10/1/25) | | | 2,500 | | | 2,445 | | | 2,445 |
Aerobiotix, LLC (2)(12) | | Medical Device | | Term Loan (9.75% cash (Prime + 6.25%; Floor 8.75%), 6.0% ETP, Due 4/1/26) | | | 2,500 | | | 2,451 | | | 2,451 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 8.75%), 6.0% ETP, Due 4/1/26) | | | 2,500 | | | 2,451 | | | 2,451 |
Canary Medical Inc. (2)(12) | | Medical Device | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 7.00% ETP, Due 11/1/24) | | | 2,500 | | | 2,431 | | | 2,431 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 7.00% ETP, Due 11/1/24) | | | 2,500 | | | 2,480 | | | 2,480 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 7.00% ETP, Due 11/1/24) | | | 2,500 | | | 2,452 | | | 2,452 |
See Notes to Consolidated Financial Statements
7
Horizon Technology Finance Corporation and Subsidiaries
Consolidated Schedule of Investments (Unaudited)
March 31, 2022
(Dollars in thousands)
|
| |
|
| | Principal |
| Cost of |
| Fair | |||
Portfolio Company (1)(3) | | Sector | | Type of Investment (4)(7)(9)(10) |
| Amount | | Investments (6) | | Value | |||
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 | | | 4,921 | | | 4,921 |
| | | | Term Loan (8.25% cash (Libor + 6.70%; Floor 8.25%), 5.50% ETP, Due 10/1/24) | | | 5,000 | | | 4,961 | | | 4,961 |
| | | | Term Loan (8.50% cash (Prime + 5.50%; Floor 8.25%), 5.50% ETP, Due 10/1/24) | | | 2,500 | | | 2,469 | | | 2,469 |
| | | | Term Loan (8.50% cash (Prime + 5.50%; Floor 8.25%), 5.50% ETP, Due 10/1/24) | | | 2,500 | | | 2,469 | | | 2,469 |
Cognoa, Inc. (2)(12) | | Medical Device | | Term Loan (9.00% cash (Prime + 5.50%; Floor 8.75%), 6.0% ETP, Due 8/1/26) | | | 5,000 | | | 4,908 | | | 4,908 |
| | | | Term Loan (9.00% cash (Prime + 5.50%; Floor 8.75%), 6.0% ETP, Due 8/1/26) | | | 2,500 | | | 2,278 | | | 2,278 |
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) | |
| 3,959 | |
| 3,882 | |
| 3,618 |
|
| |
| Term Loan (9.25% cash (Libor + 8.00%; Floor 9.25%), 10.36% ETP, Due 7/1/25) | |
| 3,959 | |
| 3,882 | | | 3,618 |
Corinth Medtech, Inc. (2)(12) | | Medical Device | | Term Loan (8.75% cash (Prime + 5.25%; Floor 8.50%), 20.00% ETP, Due 4/1/22) | | | 2,500 | | | 2,500 | | | 2,500 |
| | | | Term Loan (8.75% cash (Prime + 5.25%; Floor 8.50%), 20.00% ETP, Due 4/1/22) | | | 2,500 | | | 2,500 | | | 2,500 |
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) | |
| 2,750 | |
| 2,723 | |
| 2,723 |
| | | | Term Loan (10.00% cash (Libor + 8.20%; Floor 10.00%), 5.00% ETP, Due 1/1/24) | | | 183 | | | 182 | | | 182 |
| | | | Term Loan (10.00% cash (Libor + 8.20%; Floor 10.00%), 5.00% ETP, Due 3/1/24) | | | 3,200 | | | 3,173 | | | 3,173 |
Embody, Inc. (2)(12) | | Medical Device | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 28.00% ETP, Due 8/1/26) | | | 2,500 | | | 2,458 | | | 2,458 |
InfoBionic, Inc. (2)(12) | | Medical Device | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 10/1/24) | | | 3,500 | | | 3,406 | | | 3,406 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 6/1/25) | | | 1,000 | | | 966 | | | 966 |
MacuLogix, Inc. (2)(12)(14) |
| Medical Device |
| Term Loan (10.08% cash (Libor + 7.68%; Floor 10.08%), 6.00% ETP, Due 9/1/23) | |
| 7,500 | |
| 7,389 | |
| 3,322 |
|
| |
| Term Loan (10.08% cash (Libor + 7.68%; Floor 10.08%), 6.00% ETP, Due 9/1/23) | |
| 4,050 | |
| 3,990 | | | 1,794 |
| | | | Term Loan (14.00% cash, Due 4/29/22) | | | 188 | | | 188 | | | 83 |
| | | | Term Loan (14.00% cash, Due 4/29/22) | | | 250 | | | 300 | | | 300 |
Magnolia Medical Technologies, Inc. (2)(12) | | Medical Device | | Term Loan (10.00% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25) | | | 5,000 | | | 4,956 | | | 4,956 |
| | | | Term Loan (10.00% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25) | | | 5,000 | | | 4,956 | | | 4,956 |
| | | | Term Loan (10.00% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25) | | | 5,000 | | | 4,948 | | | 4,948 |
| | | | Term Loan (10.00% cash (Prime + 5.00%; Floor 9.75%), 4.00% ETP, Due 3/1/25) | | | 5,000 | | | 4,948 | | | 4,948 |
Sonex Health, Inc. (2)(12) | | Medical Device | | Term Loan (9.50% cash (Prime + 6.00%; Floor 9.25%), 5.00% ETP, Due 6/1/25) | | | 2,500 | | | 2,382 | | | 2,382 |
| | | | Term Loan (9.50% cash (Prime + 6.00%; Floor 9.25%), 5.00% ETP, Due 6/1/25) | | | 2,500 | | | 2,471 | | | 2,471 |
| | | | Term Loan (9.50% cash (Prime + 6.00%; Floor 9.25%), 5.00% ETP, Due 6/1/25) | | | 2,500 | | | 2,471 | | | 2,471 |
Spineology, Inc. (2)(12) | | Medical Device | | Term Loan (10.50% cash (Prime + 7.00%; Floor 10.25%), 1.00% ETP, Due 10/1/25) | | | 5,000 | | | 4,956 | | | 4,956 |
| | | | Term Loan (10.50% cash (Prime + 7.00%; Floor 10.25%), 1.00% ETP, Due 4/1/26) | | | 2,500 | | | 2,450 | | | 2,450 |
Total Non-Affiliate Debt Investments — Life Science | | | |
|
| |
| 217,469 | |
| 210,573 | ||
Non-Affiliate Debt Investments — Sustainability — 20.9% (8) | | | | | | | | | | | | ||
Dream Holdings, Inc. (2)(12) | | Other Sustainability | | Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 4/1/26) | | | 3,750 | | | 3,682 | | | 3,682 |
| | | | Term Loan (10.00% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 4/1/26) | | | 3,750 | | | 3,682 | | | 3,682 |
Nexii Building Solutions, Inc. (2)(12) | | Other Sustainability | | Term Loan (10.50% cash (Prime + 7.00%; Floor 10.25%), 2.50% ETP, Due 9/1/25) | | | 7,500 | | | 7,334 | | | 7,334 |
| | | | Term Loan (10.50% cash (Prime + 7.00%; Floor 10.25%), 2.50% ETP, Due 9/1/25) | | | 7,500 | | | 7,334 | | | 7,334 |
| | | | Term Loan (10.50% cash (Prime + 7.00%; Floor 10.25%), 2.50% ETP, Due 9/1/25) | | | 7,500 | | | 7,334 | | | 7,334 |
Soli Organic, Inc. (2)(12) | | Other Sustainability | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 2.75% ETP, Due 4/1/26) | | | 5,000 | | | 4,610 | | | 4,610 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 2.75% ETP, Due 4/1/26) | | | 2,500 | | | 2,451 | | | 2,451 |
Temperpack Technologies, Inc. (2)(12) | | Other Sustainability | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 2.50% ETP, Due 6/1/25) | | | 3,750 | | | 3,706 | | | 3,706 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 2.50% ETP, Due 6/1/25) | | | 3,750 | | | 3,706 | | | 3,706 |
See Notes to Consolidated Financial Statements
8
Horizon Technology Finance Corporation and Subsidiaries
Consolidated Schedule of Investments (Unaudited)
March 31, 2022
(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 (10.25% cash (Prime + 6.75%; Floor 10.00%), 2.50% ETP, Due 10/1/25) | | | 7,500 | | | 7,403 | | | 7,403 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 2.50% ETP, Due 10/1/25) | | | 3,750 | | | 3,702 | | | 3,702 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 2.50% ETP, Due 10/1/25) | | | 3,750 | | | 3,702 | | | 3,702 |
Total Non-Affiliate Debt Investments — Sustainability | | | | | | | | 58,646 | | | 58,646 | ||
Non-Affiliate Debt Investments — Technology — 73.5% (8) | | | | | | | | | | | | ||
Axiom Space, Inc. (2)(12) | | Communications | | Term Loan (9.50% cash (Prime + 6.00%; Floor 9.25%), 2.50% ETP, Due 6/1/26) | | | 7,500 | | | 7,446 | | | 7,446 |
| | | | Term Loan (9.50% cash (Prime + 6.00%; Floor 9.25%), 2.50% ETP, Due 6/1/26) | | | 7,500 | | | 7,446 | | | 7,446 |
| | | | Term Loan (9.50% cash (Prime + 6.00%; Floor 9.25%), 2.50% ETP, Due 6/1/26) | | | 7,500 | | | 7,446 | | | 7,446 |
| | | | Convertible Note (3.00%, Due 7/1/23) | | | 250 | | | 250 | | | 250 |
Alula Holdings, Inc. (2)(12) | | Consumer-related Technologies | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 1/1/25) | | | 5,000 | | | 4,953 | | | 4,953 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 1/1/25) | | | 5,000 | | | 4,953 | | | 4,953 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 1/1/25) | | | 3,000 | | | 2,972 | | | 2,972 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 12/1/25) | | | 1,000 | | | 970 | | | 970 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 3.00% ETP, Due 2/1/26) | | | 1,000 | | | 969 | | | 969 |
Better Place Forests Co. (2)(12) | | Consumer-related Technologies | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 1.85% ETP, Due 7/1/25) | | | 5,000 | | | 4,935 | | | 4,935 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 1.85% ETP, Due 10/1/25) | | | 2,500 | | | 2,468 | | | 2,468 |
CAMP NYC, Inc. (2)(12) | | Consumer-related Technologies | | Term Loan (10.75% cash (Prime + 7.25%; Floor 10.50%), 3.00% ETP, Due 5/1/26) | | | 3,500 | | | 3,452 | | | 3,452 |
Clara Foods Co. (2)(12) | | Consumer-related Technologies | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 8/1/25) | | | 2,500 | | | 2,477 | | | 2,477 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 8/1/25) | | | 2,500 | | | 2,477 | | | 2,477 |
Interior Define, Inc. (2)(12) | | Consumer-related Technologies | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 1/1/26 | | | 6,500 | | | 6,403 | | | 5,896 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 1/1/26 | | | 6,000 | | | 5,781 | | | 5,441 |
Lyrical Foods, Inc. (2)(12) | | Consumer-related Technologies | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 9.75% ETP, Due 1/1/24) | | | 2,500 | | | 2,483 | | | 2,483 |
MyForest Foods Co. (2)(12) | | Consumer-related Technologies | | Term Loan (10.25% cash (Prime + 7.00%; Floor 10.00%), 3.00% ETP, Due 10/1/25) | | | 5,000 | | | 4,931 | | | 4,931 |
| | | | Term Loan (10.25% cash (Prime + 7.00%; Floor 10.00%), 3.00% ETP, Due 10/1/25) | | | 2,500 | | | 2,465 | | | 2,465 |
NextCar Holding Company, Inc. (2)(12) | | Consumer-related Technologies | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 10.10% ETP, Due 1/1/26) | | | 5,000 | | | 4,939 | | | 4,939 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 10.10% ETP, Due 1/1/26) | | | 2,000 | | | 1,976 | | | 1,976 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 10.10% ETP, Due 1/1/26) | | | 2,500 | | | 2,468 | | | 2,468 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 10.10% ETP, Due 1/1/26) | | | 3,000 | | | 2,934 | | | 2,934 |
Primary Kids, Inc. (2)(12) | | Consumer-related Technologies | | Term Loan (10.75% cash (Prime + 7.25%; Floor 10.50%), 3.00% ETP, Due 3/1/25) | | | 3,000 | | | 2,964 | | | 2,964 |
| | | | Term Loan (10.75% cash (Prime + 7.25%; Floor 10.50%), 3.00% ETP, Due 3/1/25) | | | 3,000 | | | 2,964 | | | 2,964 |
| | | | Term Loan (10.75% cash (Prime + 7.25%; Floor 10.50%), 3.00% ETP, Due 9/1/25) | | | 3,000 | | | 2,958 | | | 2,958 |
Unagi, Inc. (2)(12) | | Consumer-related Technologies | | Term Loan (11.25% cash (Prime + 7.75%; Floor 11.00%), Due 7/1/25) | | | 2,500 | | | 2,467 | | | 2,467 |
| | | | Term Loan (11.25% cash (Prime + 7.75%; Floor 11.00%), Due 7/1/25) | | | 1,250 | | | 1,233 | | | 1,233 |
| | | | Term Loan (11.25% cash (Prime + 7.75%; Floor 11.00%), Due 7/1/25) | | | 1,250 | | | 1,229 | | | 1,229 |
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 | | | 4,839 | | | 4,839 |
| | | | Term Loan (12.00% cash (Prime + 5.75%; Floor 12.00%, Ceiling 14.00%), 0.56% ETP, Due 12/20/24) | | | 5,000 | | | 4,839 | | | 4,839 |
| | | | Term Loan (12.00% cash (Prime + 5.75%; Floor 12.00%, Ceiling 14.00%), 0.56% ETP, Due 12/20/24) | | | 10,000 | | | 9,679 | | | 9,679 |
Liqid, Inc.(2)(12) | | Networking | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24) | | | 5,000 | | | 4,777 | | | 4,777 |
See Notes to Consolidated Financial Statements
9
Horizon Technology Finance Corporation and Subsidiaries
Consolidated Schedule of Investments (Unaudited)
March 31, 2022
(Dollars in thousands)
|
| |
|
| | |
| Cost of |
| Fair | |||
Portfolio Company (1)(3) | | Sector | | Type of Investment (4)(7)(9)(10) |
| | | Investments (6) | | Value | |||
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24) | | | 5,000 | | | 4,932 | | | 4,932 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24) | | | 2,500 | | | 2,463 | | | 2,463 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24) | | | 2,500 | | | 2,463 | | | 2,463 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 4.00% ETP, Due 9/1/24) | | | 2,500 | | | 2,422 | | | 2,422 |
Branded Online, Inc. (2)(12) | | Software | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 6.00% ETP, Due 9/1/26) | | | 5,000 | | | 4,734 | | | 4,734 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 6.00% ETP, Due 11/1/26) | | | 2,500 | | | 2,362 | | | 2,362 |
| | | | Term Loan (9.75% cash (Prime + 6.25%; Floor 9.50%), 0% ETP, Due 7/1/23) | | | 5,000 | | | 5,000 | | | 5,000 |
BriteCore Holdings, Inc. (2)(12) | | Software | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 4.00% ETP, Due 10/1/24) | | | 2,500 | | | 2,416 | | | 2,416 |
| | | | Term Loan (10.25% cash (Prime + 6.75%; Floor 10.00%), 4.00% ETP, Due 10/1/24) | | | 2,500 | | | 2,483 | | | 2,483 |
Decisyon, Inc. (12) |
| Software |
| Term Loan (12.93% cash (Prime + 9.23%; Floor 12.68%), 50.43% ETP, Due 1/1/23) | | | 3,379 | | | 3,379 | | | 3,379 |
Dropoff, Inc. (2)(12) | | Software | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 3.50% ETP, Due 4/1/26) | | | 6,500 | | | 6,148 | | | 6,148 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 3.50% ETP, Due 4/1/26) | | | 6,000 | | | 5,826 | | | 5,826 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 3.50% ETP, Due 8/1/26) | | | 2,500 | | | 2,419 | | | 2,419 |
E La Carte, Inc. (2)(12) | | Software | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 10/1/25) | | | 3,000 | | | 2,940 | | | 2,940 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 10/1/25) | | | 3,000 | | | 2,961 | | | 2,961 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 10/1/25) | | | 1,500 | | | 1,480 | | | 1,480 |
Lemongrass Holdings, Inc. (2)(12) | | Software | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 2.50% ETP, Due 3/1/26) | | | 5,000 | | | 4,930 | | | 4,930 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 2.50% ETP, Due 3/1/26) | | | 2,500 | | | 2,465 | | | 2,465 |
Lytics, Inc. (2)(12) | | Software | | Term Loan (10.00% cash (Prime + 6.00%; Floor 9.25%), 4.00% ETP, Due 7/1/25) | | | 2,500 | | | 2,467 | | | 2,467 |
Reputation Institute, Inc. (2)(12) | | Software | | Term Loan (10.75% cash (Prime + 7.25%; Floor 10.50%), 3.00% ETP, Due 8/1/25) | | | 5,000 | | | 4,912 | | | 4,912 |
Supply Network Visiblity Holdings LLC (2)(12) | | Software | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 2/1/25) | | | 3,500 | | | 3,462 | | | 3,462 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 2/1/25) | | | 3,500 | | | 3,462 | | | 3,462 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 12/1/25) | | | 2,500 | | | 2,465 | | | 2,465 |
| | | | Term Loan (10.00% cash (Prime + 6.50%; Floor 9.75%), 4.00% ETP, Due 12/1/25) | | | 2,500 | | | 2,465 | | | 2,465 |
Total Non-Affiliate Debt Investments — Technology |
| |
| | |
| | 206,599 | | | 205,752 | ||
Non-Affiliate Debt Investments — Healthcare information and services — 6.1% (8) |
| |
|
| |
|
| |
| ||||
IDbyDNA, Inc.(2)(12) | | Diagnostics | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 1/1/25) | | | 5,000 | | | 4,941 | | | 4,941 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 1/1/25) | | | 5,000 | | | 4,941 | | | 4,941 |
| | | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 5.50% ETP, Due 1/1/26) | | | 2,500 | | | 2,447 | | | 2,447 |
Secure Transfusion Services, Inc. (2)(12) | | Other Healthcare | | Term Loan (9.25% cash (Prime + 5.75%; Floor 9.00%), 4.00% ETP, Due 10/1/25) | | | 5,000 | | | 4,894 | | | 4,894 |
Total Non-Affiliate Debt Investments — Healthcare information and services |
| |
|
| | 17,223 |
| | 17,223 | ||||
Total Non- Affiliate Debt Investments |
| | | |
| |
|
| | 499,937 |
| | 492,194 |
Non-Affiliate Warrant Investments — 7.9% (8) |
|
|
| |
|
| | |
| |
| ||
Non-Affiliate Warrants — Life Science — 1.1% (8) |
|
|
| |
|
| |
|
| |
| ||
Avalo Therapeutics, Inc. (2)(5)(12) | | Biotechnology | | 317,306 Common Stock Warrants | | | | | | 310 | | | — |
Castle Creek Biosciences, Inc. (2)(12) | | Biotechnology | | 3,885 Preferred Stock Warrants | | | | | | 151 | | | 18 |
Celsion Corporation (2)(5)(12) |
| Biotechnology |
| 19,671 Common Stock Warrants |
| | |
| | 64 |
| | — |
Corvium, Inc. (2)(12) | | Biotechnology | | 661,956 Preferred Stock Warrants | | | | | | 54 | | | — |
Emalex Biosciences, Inc. (2)(12) | | Biotechnology | | 92,002 Preferred Stock Warrants | | | | | | 139 | | | 178 |
F-Star Therapeutics, Inc. (2)(5)(12) | | Biotechnology | | 21,120 Common Stock Warrants | | | | | | 35 | | | — |
Greenlight Biosciences, Inc. (2)(5)(12) | | Biotechnology | | 71,292 Common Stock Warrants | | | | | | 368 | | | 368 |
IMV Inc. (2)(5)(12) | | Biotechnology | | 284,090 Common Stock Warrants | | | | | | 64 | | | 107 |
LogicBio, Inc. (2)(5)(12) | | Biotechnology | | 7,843 Common Stock Warrants | | | | | | 8 | | | — |
Mustang Bio, Inc. (2)(5)(12) | | Biotechnology | | 252,161 Common Stock Warrants | | | | | | 147 | | | — |
Provivi, Inc. (2)(12) | | Biotechnology | | 164,608 Preferred Stock Warrants | |||||||||