UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q 

 

(Mark One)

 

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2018
	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 x No ¨

 

     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ 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	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	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 x

 

     The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of May 1, 2018 was 11,525,206. 

 

 

 

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, 2018 and December 31, 2017 (unaudited)		3
	Consolidated Statements of Operations for the three months ended March 31, 2018 and 2017 (unaudited)		4
	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2018 and 2017 (unaudited)		5
	Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 (unaudited)		6
	Consolidated Schedules of Investments as of March 31, 2018 and December 31, 2017 (unaudited)		7
	Notes to the Consolidated Financial Statements (unaudited)		17
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		46
Item 4.	Controls and Procedures		47
PART II
Item 1.	Legal Proceedings		48
Item 1A.	Risk Factors		48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		48
Item 3.	Defaults Upon Senior Securities		48
Item 4.	Mine Safety Disclosures		48
Item 5.	Other Information		48
Item 6.	Exhibits		48
	Signatures		49
EX-31.1
EX-31.2
EX-32.1
EX-32.2

 

 

PART I: FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Statements of Assets and Liabilities (Unaudited)

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

 

		March 31, 2018				December 31, 2017
Assets
Non-affiliate investments at fair value (cost of $205,970 and $219,303, respectively)		$	204,936			$	218,600
Affiliate investments at fair value (cost of $7,371 and $3,774, respectively) (Note 5)			6,969				3,499
Total investments at fair value (cost of $213,341 and $223,077, respectively) (Note 4)			211,905				222,099
Cash			16,127				6,594
Interest receivable			4,224				3,986
Other assets			1,510				1,467
Total assets		$	233,766			$	234,146
Liabilities
Borrowings (Note 7)		$	94,144			$	94,075
Distributions payable			3,457				3,456
Base management fee payable (Note 3)			384				379
Incentive fee payable (Note 3)			545				541
Other accrued expenses			975				620
Total liabilities			99,505				99,071
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, 2018 and December 31, 2017			—				—
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 11,691,416 and 11,687,871 shares issued and 11,523,951 and 11,520,406 shares outstanding as of March 31, 2018 and December 31, 2017, respectively			12				12
Paid-in capital in excess of par			179,681				179,641
Distributions in excess of net investment income			(2,145	)			(1,898	)
Net unrealized depreciation on investments			(1,436	)			(978	)
Net realized loss on investments			(41,851	)			(41,702	)
Total net assets			134,261				135,075
Total liabilities and net assets		$	233,766			$	234,146
Net asset value per common share		$	11.65			$	11.72

 

See Notes to Consolidated Financial Statements

 

 

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,
		2018				2017
Investment income
Interest income on investments
Interest income on non-affiliate investments		$	6,622			$	6,279
Interest income on affiliate investments			131				—
Total interest income on investments			6,753				6,279
Fee income
Prepayment fee income on non-affiliate investments			285				460
Fee income on non-affiliate investments			137				223
Total investment income			7,175				6,962
Expenses
Interest expense			1,484				1,316
Base management fee (Note 3)			1,114				974
Performance based incentive fee (Note 3)			545				430
Administrative fee (Note 3)			184				194
Professional fees			445				506
General and administrative			193				175
Total expenses			3,965				3,595
Net investment income			3,210				3,367
Net realized and unrealized (loss) gain on investments
Net realized loss on non-affiliate investments			(149	)			(10,845	)
Net realized loss on investments			(149	)			(10,845	)
Net unrealized (depreciation) appreciation on non-affiliate investments			(332	)			11,131
Net unrealized depreciation on affiliate investments			(126	)			—
Net unrealized (depreciation) appreciation on investments			(458	)			11,131
Net realized and unrealized (loss) gain on investments			(607	)			286
Net increase in net assets resulting from operations		$	2,603			$	3,653
Net investment income per common share		$	0.28			$	0.29
Net increase in net assets per common share		$	0.23			$	0.32
Distributions declared per share		$	0.30			$	0.30
Weighted average shares outstanding			11,522,153				11,512,853

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Statements of Changes in Net Assets (Unaudited)

(Dollars in thousands, except share data)

 

		Common Stock								Paid-In Capital in Excess of				Distributions in Excess of Net Investment				Net Unrealized Depreciation on				Net Realized Loss on				Total Net
		Shares				Amount				Par				Income				Investments				Investments				Assets
Balance at December 31, 2016			11,510,424			$	12			$	179,551			$	(397	)		$	(19,463	)		$	(20,511	)		$	139,192
Net increase in net assets resulting from operations			—				—				—				3,367				11,131				(10,845	)			3,653
Issuance of common stock under dividend reinvestment plan			4,757				—				49				—				—				—				49
Distributions declared			—				—				—				(3,455	)			—				—				(3,455	)
Balance at March 31, 2017			11,515,181			$	12			$	179,600			$	(485	)		$	(8,332	)		$	(31,356	)		$	139,439
Balance at December 31, 2017			11,520,406			$	12			$	179,641			$	(1,898	)		$	(978	)		$	(41,702	)		$	135,075
Net increase in net assets resulting from operations			—				—				—				3,210				(458	)			(149	)			2,603
Issuance of common stock under dividend reinvestment plan			3,545				—				40				—				—				—				40
Distributions declared			—				—				—				(3,457	)			—				—				(3,457	)
Balance at March 31, 2018			11,523,951			$	12			$	179,681			$	(2,145	)		$	(1,436	)		$	(41,851	)		$	134,261

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

 

		For the Three Months Ended
		March 31,
		2018				2017
Cash flows from operating activities:
Net increase in net assets resulting from operations		$	2,603			$	3,653
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Amortization of debt issuance costs			150				127
Net realized loss on investments			149				10,845
Net unrealized depreciation (appreciation) on investments			458				(11,131	)
Purchase of investments			(8,562	)			(25,916	)
Principal payments received on investments			15,540				39,511
Proceeds from sale of investments			2,715				1,226
Changes in assets and liabilities:
Decrease in interest receivable			4				112
(Increase) decrease in end-of-term payments			(242	)			927
Decrease in unearned income			(106	)			(235	)
(Increase) decrease in other assets			(124	)			385
Increase in other accrued expenses			355				4
Increase (decrease) in base management fee payable			5				(25	)
Increase in incentive fee payable			4				430
Net cash provided by operating activities			12,949				19,913
Cash flows from financing activities:
Advances on credit facility			—				15,000
Repayment of credit facility			—				(25,000	)
Distributions paid			(3,416	)			(3,404	)
Net cash used in financing activities			(3,416	)			(13,404	)
Net increase in cash			9,533				6,509
Cash:
Beginning of period			6,594				37,135
End of period		$	16,127			$	43,644
Supplemental disclosure of cash flow information:
Cash paid for interest		$	1,278			$	1,257
Supplemental non-cash investing and financing activities:
Warrant investments received and recorded as unearned income		$	248			$	877
Distributions payable		$	3,457			$	3,455
End-of-term payments receivable		$	3,178			$	3,736

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

March 31, 2018

(Dollars in thousands)

 

						Principal				Cost of				Fair
Portfolio Company (1)(3)		Sector		Type of Investment (4)(7)(9)(10)		Amount				Investments (6)				Value (13)
Non-Affiliate Investments — 152.5% (8)
Non-Affiliate Debt Investments — 139.1% (8)
Non-Affiliate Debt Investments — Life Science — 39.2% (8)
Palatin Technologies, Inc. (2)(5)		Biotechnology		Term Loan (10.17% cash (Libor + 8.50%; Floor		$	1,500			$	1,485			$	1,485
				9.00%), 5.00% ETP, Due 1/1/19)
				Term Loan (10.17% cash (Libor + 8.50%; Floor			2,667				2,643				2,643
				9.00%), 5.00% ETP, Due 8/1/19)
vTv Therapeutics Inc. (2)(5)		Biotechnology		Term Loan (11.67% cash (Libor + 10.00%; Floor			6,250				6,202				6,170
				10.50%), 6.00% ETP, Due 5/1/20)
				Term Loan (11.67% cash (Libor + 10.00%; Floor			3,750				3,705				3,686
				10.50%), 6.00% ETP, Due 10/1/20)
Titan Pharmaceuticals, Inc. (2)(5)		Drug Delivery		Term Loan (10.18% cash (Libor + 8.40%; Floor			1,600				1,462				1,462
				9.50%), 5.00% ETP, Due 6/1/21)
Aerin Medical, Inc. (2)		Medical Device		Term Loan (9.12% cash (Libor + 7.45%; Floor			4,000				3,880				3,880
				8.75%), 4.00% ETP, Due 1/1/22)
				Term Loan (9.12% cash (Libor + 7.45%; Floor			3,000				2,957				2,957
				8.75%), 4.00% ETP, Due 1/1/22)
				Term Loan (9.12% cash (Libor + 7.45%; Floor			3,000				2,957				2,957
				8.75%), 4.00% ETP, Due 1/1/22)
Conventus Orthopaedics, Inc. (2)		Medical Device		Term Loan (9.67% cash (Libor + 8.00%; Floor			4,000				3,934				3,934
				9.25%), 6.00% ETP, Due 6/1/21)
				Term Loan (9.67% cash (Libor + 8.00%; Floor			4,000				3,934				3,934
				9.25%), 6.00% ETP, Due 6/1/21)
				Term Loan (9.67% cash (Libor + 8.00%; Floor			4,000				3,934				3,934
				9.25%), 6.00% ETP, Due 6/1/21)
Lantos Technologies, Inc. (2)		Medical Device		Term Loan (10.21% cash (Libor + 8.43%; Floor			4,000				3,439				3,439
				10.00%), 6.00% ETP, Due 9/1/21)
Mederi Therapeutics, Inc. (2)(11)		Medical Device		Term Loan (13.31% cash (Libor + 11.82%; Floor			173				173				173
				12.00%), 6.00% ETP, Due 12/1/17)
				Term Loan (13.31% cash (Libor + 11.82%; Floor			173				173				173
				12.00%), 6.00% ETP, Due 12/1/17)
NinePoint Medical, Inc. (2)		Medical Device		Term Loan (10.42% cash (Libor + 8.75%; Floor			2,667				2,650				2,650
				9.25%), 4.50% ETP, Due 3/1/19)
				Term Loan (10.42% cash (Libor + 8.75%; Floor			1,333				1,322				1,322
				9.25%), 4.50% ETP, Due 3/1/19)
VERO Biotech LLC (2)		Medical Device		Term Loan (9.67% cash (Libor + 8.00%; Floor			4,000				3,918				3,918
				9.25%), 5.00% ETP, Due 1/1/22)
				Term Loan (9.67% cash (Libor + 8.00%; Floor			4,000				3,938				3,938
				9.25%), 5.00% ETP, Due 1/1/22)
Total Non-Affiliate Debt Investments — Life Science											52,706				52,655
Non-Affiliate Debt Investments — Technology — 90.8% (8)
Intelepeer Holdings, Inc.		Communications		Term Loan (11.62% cash (Libor + 9.95%; Floor			4,000				3,892				3,892
				11.25%), 2.50% ETP, Due 7/1/21)
				Term Loan (11.62% cash (Libor + 9.95%; Floor			4,000				3,932				3,932
				11.25%), 2.50% ETP, Due 7/1/21)
				Term Loan (11.62% cash (Libor + 9.95%; Floor			4,000				3,932				3,932
				11.25%), 2.50% ETP, Due 7/1/21)
PebblePost, Inc. (2)		Communications		Term Loan (10.93% cash (Libor + 9.26%; Floor			4,000				3,879				3,879
				10.25%), 4.00% ETP, Due 7/1/21)
				Term Loan (10.93% cash (Libor + 9.26%; Floor			4,000				3,937				3,937
				10.25%), 4.00% ETP, Due 7/1/21)
SavingStar, Inc. (2)		Consumer-related Technologies		Term Loan (12.07% cash (Libor + 10.40%; Floor			2,067				2,042				2,026
				10.90%), 4.25% ETP, Due 6/1/20)
				Term Loan (12.07% cash (Libor + 10.40%; Floor			1,844				1,788				1,774
				10.90%), 3.80% ETP, Due 11/1/20)
IgnitionOne, Inc. (2)		Internet and Media		Term Loan (11.90% cash (Libor + 10.23%; Floor			3,000				2,842				2,842
				10.23%), 2.00% ETP, Due 4/1/22)
				Term Loan (11.90% cash (Libor + 10.23%; Floor			3,000				2,842				2,842
				10.23%), 2.00% ETP, Due 4/1/22)
				Term Loan (11.90% cash (Libor + 10.23%; Floor			3,000				2,842				2,842
				10.23%), 2.00% ETP, Due 4/1/22)
				Term Loan (11.90% cash (Libor + 10.23%; Floor			3,000				2,842				2,842
				10.23%), 2.00% ETP, Due 4/1/22)

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

March 31, 2018

(Dollars in thousands)

 

						Principal				Cost of				Fair
Portfolio Company (1)(3)		Sector		Type of Investment (4)(7)(9)(10)		Amount				Investments (6)				Value (13)
Jump Ramp Games, Inc. (2)		Internet and Media		Term Loan (11.40% cash (Libor + 9.73%),			4,000				3,946				3,946
				3.00% ETP, Due 4/1/21)
Kixeye, Inc. (2)		Internet and Media		Term Loan (11.27% cash (Libor + 9.60%; Floor			3,000				2,891				2,891
				10.75%), 2.00% ETP, Due 5/1/21)
				Term Loan (11.27% cash (Libor + 9.60%; Floor			3,000				2,949				2,949
				10.75%), 2.00% ETP, Due 5/1/21)
MediaBrix, Inc. (2)		Internet and Media		Term Loan (12.67% cash (Libor + 11.00%; Floor			3,667				3,647				3,647
				11.50%), 3.00% ETP, Due 1/1/20)
Rocket Lawyer Incorporated (2)		Internet and Media		Term Loan (11.07% cash (Libor + 9.40%; Floor			4,000				3,937				3,937
				10.50%), 3.00% ETP, Due 7/1/21)
				Term Loan (11.07% cash (Libor + 9.40%; Floor			4,000				3,937				3,937
				10.50%), 3.00% ETP, Due 7/1/21)
				Term Loan (11.07% cash (Libor + 9.40%; Floor			2,000				1,966				1,966
				10.50%), 3.00% ETP, Due 11/1/21)
Zinio Holdings, LLC (2)		Internet and Media		Term Loan (12.92% cash (Libor + 11.25%; Floor			4,000				3,980				3,980
				11.75%), 6.00% ETP, Due 2/1/20)
The NanoSteel Company, Inc. (2)		Materials		Term Loan (11.17% cash (Libor + 9.50%; Floor			4,445				4,379				4,379
				10.00%), 7.20% ETP, Due 1/1/20)
				Term Loan (11.17% cash (Libor + 9.50%; Floor			2,223				2,190				2,190
				10.00%), 6.45% ETP, Due 1/1/20)
				Term Loan (11.17% cash (Libor + 9.50%; Floor			2,431				2,393				2,393
				10.00%), 5.85% ETP, Due 3/1/20)
Powerhouse Dynamics, Inc. (2)		Power Management		Term Loan (12.37% cash (Libor + 10.70%; Floor			1,050				1,023				1,023
				11.20%), 3.32% ETP, Due 9/1/19)
Luxtera, Inc.		Semiconductors		Term Loan (11.25% cash (Prime + 6.75%),			2,000				1,913				1,913
				Due 3/28/20)
				Term Loan (11.25% cash (Prime + 6.75%),			1,500				1,449				1,449
				Due 3/28/20)
Bridge2 Solutions, LLC. (2)		Software		Term Loan (10.92% cash (Libor + 9.25%; Floor			5,000				4,792				4,792
				10.50%), 2.00% ETP, Due 11/1/21)
				Term Loan (10.92% cash (Libor + 9.25%; Floor			5,000				4,792				4,792
				10.50%), 2.00% ETP, Due 11/1/21)
Education Elements, Inc. (2)		Software		Term Loan (11.67% cash (Libor + 10.00%; Floor			600				592				592
				10.50%), 4.00% ETP, Due 1/1/19)
				Term Loan (11.67% cash (Libor + 10.00%; Floor			800				789				789
				10.50%), 4.00% ETP, Due 8/1/19)
Metricly, Inc.		Software		Term Loan (13.92% cash (Libor + 12.25%; Floor			158				158				158
				12.50%), 3.33% ETP, Due 9/1/18)
ShopKeep.com, Inc. (2)		Software		Term Loan (11.62% cash (Libor + 9.95%; Floor			5,700				5,607				5,607
				10.45%), 4.08% ETP, Due 10/1/20)
				Term Loan (11.62% cash (Libor + 9.95%; Floor			4,000				3,930				3,930
				10.45%), 3.55% ETP, Due 2/1/21)
SIGNiX, Inc.		Software		Term Loan (12.67% cash (Libor + 11.00%; Floor			2,120				2,025				1,640
				11.50%), 5.33% ETP, Due 2/1/20)
SilkRoad Technology, Inc. (2)		Software		Term Loan (12.02% cash (Libor + 10.35%; Floor			6,750				6,664				6,664
				10.85%; Ceiling 12.85%), 5.00% ETP, Due 6/1/20)
Weblinc Corporation (2)		Software		Term Loan (11.92% cash (Libor + 10.25%; Floor			3,000				2,954				2,954
				11.25%), 3.00% ETP, Due 3/1/21)
xAd, Inc. (2)		Software		Term Loan (10.37% cash (Libor + 8.70%; Floor			5,000				4,902				4,902
				10.00%), 4.75% ETP, Due 11/1/21)
				Term Loan (10.37% cash (Libor + 8.70%; Floor			5,000				4,902				4,902
				10.00%), 4.75% ETP, Due 11/1/21)
				Term Loan (10.37% cash (Libor + 8.70%; Floor			3,000				2,941				2,941
				10.00%), 4.75% ETP, Due 11/1/21)
				Term Loan (10.37% cash (Libor + 8.70%; Floor			2,000				1,961				1,961
				10.00%), 4.75% ETP, Due 11/1/21)
Total Non-Affiliate Debt Investments — Technology											122,379				121,964
Non-Affiliate Debt Investments — Healthcare information and services — 9.1% (8)
HealthEdge Software, Inc. (2)		Software		Term Loan (9.92% cash (Libor + 8.25%;			5,000				4,860				4,860
				Floor 9.25%), 3.00% ETP, Due 7/1/22)
				Term Loan (9.92% cash (Libor + 8.25%;			3,750				3,696				3,696
				Floor 9.25%), 3.00% ETP, Due 1/1/23)
				Term Loan (9.99% cash (Libor + 8.25%;			3,750				3,692				3,692
				Floor 9.25%), 3.00% ETP, Due 4/1/23)
Total Non-Affiliate Debt Investments — Healthcare information and services											12,248				12,248
Total Non- Affiliate Debt Investments											187,333				186,867

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

March 31, 2018

(Dollars in thousands)

 

Cost of

Fair

Portfolio Company (1)(3)

Sector

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

Investments (6)

Value (13)

Non-Affiliate Warrant Investments — 6.9% (8)

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

ACT Biotech Corporation

Biotechnology

604,038 Preferred Stock Warrants

60

—

Alpine Immune Sciences, Inc. (5)

Biotechnology

4,634 Common Stock Warrants

122

—

Argos Therapeutics, Inc. (2)(5)

Biotechnology

3,656 Common Stock Warrants

33

—

Celsion Corporation (5)

Biotechnology

408 Common Stock Warrants

15

—

Rocket Pharmaceuticals Corporation (5)

Biotechnology

1,763 Common Stock Warrants

17

—

Palatin Technologies, Inc. (2)(5)

Biotechnology

608,058 Common Stock Warrants

51

197

Revance Therapeutics, Inc. (5)

Biotechnology

34,113 Common Stock Warrants

68

564

Sample6, Inc. (2)

Biotechnology

661,956 Preferred Stock Warrants

53

25

Strongbridge U.S. Inc. (5)

Biotechnology

160,714 Common Stock Warrants

72

1,056

Sunesis Pharmaceuticals, Inc. (5)

Biotechnology

2,050 Common Stock Warrants

5

—

vTv Therapeutics Inc. (2)(5)

Biotechnology

95,293 Common Stock Warrants

44

12

Titan Pharmaceuticals, Inc. (2)(5)

Drug Delivery

320,612 Common Stock Warrants

95

19

AccuVein Inc. (2)

Medical Device

1,174,881 Preferred Stock Warrants

24

28

Aerin Medical, Inc. (2)

Medical Device

1,818,182 Preferred Stock Warrants

66

68

Conventus Orthopaedics, Inc. (2)

Medical Device

720,000 Preferred Stock Warrants

95

98

Lantos Technologies, Inc. (2)

Medical Device

1,715,926 Common Stock Warrants

253

285

Mederi Therapeutics, Inc. (2)

Medical Device

248,736 Preferred Stock Warrants

26

—

Mitralign, Inc. (2)

Medical Device

64,190 Common Stock Warrants

52

1

NinePoint Medical, Inc. (2)

Medical Device

29,102 Preferred Stock Warrants

33

2

OraMetrix, Inc. (2)

Medical Device

812,348 Preferred Stock Warrants

78

—

ReShape Lifesciences Inc. (5)

Medical Device

134 Common Stock Warrants

347

—

Tryton Medical, Inc. (2)

Medical Device

122,362 Preferred Stock Warrants

15

13

VERO Biotech LLC (2)

Medical Device

800,000 Common Stock Warrants

53

54

ViOptix, Inc.

Medical Device

375,763 Preferred Stock Warrants

13

—

Total Non-Affiliate Warrants — Life Science

1,690

2,422

Non-Affiliate Warrants — Technology — 4.5% (8)

Ekahau, Inc. (2)

Communications

978,261 Preferred Stock Warrants

33

24

Intelepeer Holdings, Inc.

Communications

2,256,549 Preferred Stock Warrants

149

113

PebblePost, Inc. (2)

Communications

598,850 Preferred Stock Warrants

92

95

Additech, Inc. (2)

Consumer-related Technologies

150,000 Preferred Stock Warrants

33

32

Gwynnie Bee, Inc. (2)

Consumer-related Technologies

268,591 Preferred Stock Warrants

68

819

Le Tote, Inc. (2)

Consumer-related Technologies

202,974 Preferred Stock Warrants

63

368

Rhapsody International Inc. (2)

Consumer-related Technologies

852,273 Common Stock Warrants

164

—

SavingStar, Inc. (2)

Consumer-related Technologies

850,439 Preferred Stock Warrants

104

3

IgnitionOne, Inc. (2)

Internet and Media

262,910 Preferred Stock Warrants

671

664

Jump Ramp Games, Inc. (2)

Internet and Media

159,766 Preferred Stock Warrants

32

33

Kixeye, Inc. (2)

Internet and Media

791,251 Preferred Stock Warrants

75

77

Rocket Lawyer Incorporated (2)

Internet and Media

261,721 Preferred Stock Warrants

92

95

The NanoSteel Company, Inc. (2)

Materials

379,360 Preferred Stock Warrants

187

456

Powerhouse Dynamics, Inc. (2)

Power Management

348,838 Preferred Stock Warrants

33

32

Avalanche Technology, Inc. (2)

Semiconductors

202,602 Preferred Stock Warrants

101

37

eASIC Corporation (2)

Semiconductors

40,445 Preferred Stock Warrants

25

29

Kaminario, Inc.

Semiconductors

1,087,203 Preferred Stock Warrants

59

46

Luxtera, Inc.(2)

Semiconductors

3,546,553 Preferred Stock Warrants

213

363

Soraa, Inc. (2)

Semiconductors

203,616 Preferred Stock Warrants

80

446

Bolt Solutions Inc. (2)

Software

202,892 Preferred Stock Warrants

113

102

Bridge2 Solutions, Inc. (2)

Software

125,458 Common Stock Warrants

432

763

Clarabridge, Inc.

Software

53,486 Preferred Stock Warrants

14

105

Education Elements, Inc. (2)

Software

238,121 Preferred Stock Warrants

28

29

Lotame Solutions, Inc. (2)

Software

288,115 Preferred Stock Warrants

22

284

Metricly, Inc.

Software

41,569 Common Stock Warrants

48

—

Riv Data Corp. (2)

Software

321,428 Preferred Stock Warrants

12

38

ShopKeep.com, Inc. (2)

Software

193,962 Preferred Stock Warrants

118

113

SIGNiX, Inc.

Software

133,560 Preferred Stock Warrants

225

35

Skyword, Inc.

Software

301,056 Preferred Stock Warrants

48

3

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

March 31, 2018

(Dollars in thousands)

 

						Principal				Cost of				Fair
Portfolio Company (1)(3)		Sector		Type of Investment (4)(7)(9)(10)		Amount				Investments (6)				Value (13)
SpringCM, Inc. (2)		Software		2,385,686 Preferred Stock Warrants							55				136
Sys-Tech Solutions, Inc.		Software		375,000 Preferred Stock Warrants							242				428
Visage Mobile, Inc.		Software		1,692,047 Preferred Stock Warrants							19				2
Weblinc Corporation (2)		Software		195,122 Preferred Stock Warrants							42				43
xAd, Inc. (2)		Software		4,343,350 Preferred Stock Warrants							177				289
Total Non-Affiliate Warrants — Technology											3,869				6,102
Non-Affiliate Warrants — Cleantech — 0.1% (8)
Renmatix, Inc.		Alternative Energy		53,022 Preferred Stock Warrants							68				—
Tigo Energy, Inc. (2)		Energy Efficiency		804,604 Preferred Stock Warrants							100				119
Total Non-Affiliate Warrants — Cleantech											168				119
Non-Affiliate Warrants — Healthcare information and services — 0.5% (8)
LifePrint Group, Inc. (2)		Diagnostics		49,000 Preferred Stock Warrants							29				2
ProterixBio, Inc. (2)		Diagnostics		3,156 Common Stock Warrants							54				—
Singulex, Inc.		Other Healthcare		294,231 Preferred Stock Warrants							44				45
Verity Solutions Group, Inc.		Other Healthcare		300,360 Preferred Stock Warrants							100				63
Watermark Medical, Inc. (2)		Other Healthcare		27,373 Preferred Stock Warrants							74				61
HealthEdge Software, Inc. (2)		Software		158,063 Preferred Stock Warrants							67				67
Medsphere Systems Corporation (2)		Software		7,097,792 Preferred Stock Warrants							60				212
Recondo Technology, Inc. (2)		Software		556,796 Preferred Stock Warrants							95				211
Total Non-Affiliate Warrants — Healthcare information and services											523				661
Total Non-Affiliate Warrants											6,250				9,304
Non-Affiliate Other Investments — 5.7% (8)
Espero Pharmaceuticals, Inc.		Biotechnology		Royalty Agreement							5,300				4,700
ZetrOZ, Inc.		Medical Device		Royalty Agreement							243				700
Vette Technology, LLC		Data Storage		Royalty Agreement Due 4/18/2019							4,200				100
Triple Double Holdings, LLC		Software		License Agreement							2,200				2,200
Total Non-Affiliate Other Investments											11,943				7,700
Non-Affiliate Equity — 0.8% (8)
Insmed Incorporated (5)		Biotechnology		33,208 Common Stock							238				748
Revance Therapeutics, Inc.(5)		Biotechnology		5,125 Common Stock							73				158
Sunesis Pharmaceuticals, Inc. (5)		Biotechnology		13,082 Common Stock							83				35
SnagAJob.com, Inc.		Consumer-related Technologies		82,974 Common Stock							9				83
TruSignal, Inc.		Software		32,637 Common Stock							41				41
Total Non-Affiliate Equity											444				1,065
Total Non-Affiliate Portfolio Investment Assets										$	205,970			$	204,936
Affiliate Investments — 5.3% (8)
Affiliate Debt Investments — Technology — 4.6% (8)
Decisyon, Inc.		Software		Term Loan (13.978% cash (Libor + 12.308%; Floor		$	1,523			$	1,522			$	1,462
				12.50%), 8.00% ETP, Due 4/1/20)
				Term Loan (13.978% cash (Libor + 12.308%; Floor			833				779				748
				12.50%), 8.00% ETP, Due 4/1/20)
				Term Loan (12.02% cash , Due 4/15/19)			250				250				240
				Term Loan (12.03% cash , Due 4/15/19)			250				250				240
				Term Loan (12.24% cash , Due 4/15/19)			750				750				721
StereoVision Imaging, Inc.		Software		Term Loan (8.61% PIK (Libor + 7.03%; Floor			3,200				2,798				2,692
				8.50%), 8.50% ETP, Due 9/1/21) (12)
Total Affiliate Debt Investments — Technology											6,349				6,103
Affiliate Warrants — Technology — 0.0% (8)
Decisyon, Inc.		Software		82,967 Common Stock Warrants							46				—
Total Affiliate Warrants — Technology											46				—
Affiliate Equity — Technology — 0.7% (8)
Decisyon, Inc.		Software		45,365,936 Common Stock							185				75
StereoVision Imaging, Inc.		Software		1,943,572 Common Stock							791				791
Total Affiliate Equity											976				866
Total Affiliate Portfolio Investment Assets										$	7,371			$	6,969
Total Portfolio Investment Assets — 157.8%(8)										$	213,341			$	211,905

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

March 31, 2018

(Dollars in thousands)

 

(1)

All investments of the Company are in entities which are organized under the laws of the United States and have a principal place of business in the United States.

(2)

Has been pledged as collateral under the Key Facility.

(3)

All non-affiliate investments are investments in which the Company owns less than 5% ownership of the voting securities of the portfolio company. All affiliate investments are investments in which the Company owns 5% or more of the voting securities of the portfolio company.

(4)

All interest is payable in cash due monthly in arrears, unless otherwise indicated, and applies only to the Company’s debt investments. Interest rate is the annual interest rate on the debt investment and does not include end-of-term payments (“ETPs”) and any additional fees related to the investments, such as deferred interest, commitment fees or prepayment fees. Debt investments are at fixed rates for the term of the debt investment, unless otherwise indicated. All debt investments based on LIBOR are based on one-month LIBOR. For each debt investment, the current interest rate in effect as of March 31, 2018 is provided.

(5)

Portfolio company is a public company.

(6)

For debt investments, represents principal balance less unearned income.

(7)

Warrants, Equity and Other Investments are non-income producing.

(8)

Value as a percent of net assets.

(9)

The Company did not have any non-qualifying assets under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), as of March 31, 2018. Under the 1940 Act, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets.

(10)

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

(11)

Debt investment is on non-accrual status as of March 31, 2018.

(12)

Debt investment has a payment-in-kind (“PIK”) feature.

(13)

Except for common stock in publicly traded companies, the fair value of the investment was valued using significant unobservable inputs.

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2017

(Dollars in thousands)

 

						Principal				Cost of				Fair
Portfolio Company (1)(3)		Sector		Type of Investment (4)(7)(9)(10)		Amount				Investments (6)				Value (14)
Non-Affiliate Investments — 161.8% (8)
Non-Affiliate Debt Investments — 148.4% (8)
Non-Affiliate Debt Investments — Life Science — 43.0% (8)
Palatin Technologies, Inc. (2)(5)		Biotechnology		Term Loan (9.87% cash (Libor + 8.50%; Floor		$	2,000			$	1,980			$	1,980
				9.00%), 5.00% ETP, Due 1/1/19)
				Term Loan (9.87% cash (Libor + 8.50%; Floor			3,167				3,139				3,139
				9.00%), 5.00% ETP, Due 8/1/19)
vTv Therapeutics Inc. (2)(5)		Biotechnology		Term Loan (11.37% cash (Libor + 10.00%; Floor			6,250				6,196				6,196
				10.50%), 6.00% ETP, Due 5/1/20)
				Term Loan (11.37% cash (Libor + 10.00%; Floor			3,750				3,700				3,700
				10.50%), 6.00% ETP, Due 10/1/20)
Titan Pharmaceuticals, Inc. (2)(5)		Drug Delivery		Term Loan (9.77% cash (Libor + 8.40%; Floor			3,500				3,400				3,400
				9.50%), 5.00% ETP, Due 6/1/21)
				Term Loan (9.77% cash (Libor + 8.40%; Floor			3,500				3,430				3,430
				9.50%), 5.00% ETP, Due 6/1/21)
Aerin Medical, Inc. (2)		Medical Device		Term Loan (8.85% cash (Libor + 7.45%; Floor			4,000				3,876				3,876
				8.75%), 4.00% ETP, Due 1/1/22)
				Term Loan (8.85% cash (Libor + 7.45%; Floor			3,000				2,954				2,954
				8.75%), 4.00% ETP, Due 1/1/22)
				Term Loan (8.85% cash (Libor + 7.45%; Floor			3,000				2,954				2,954
				8.75%), 4.00% ETP, Due 1/1/22)
Conventus Orthopaedics, Inc. (2)		Medical Device		Term Loan (9.49% cash (Libor + 8.00%; Floor			4,000				3,928				3,928
				9.25%), 6.00% ETP, Due 6/1/21)
				Term Loan (9.49% cash (Libor + 8.00%; Floor			4,000				3,928				3,928
				9.25%), 6.00% ETP, Due 6/1/21)
				Term Loan (9.49% cash (Libor + 8.00%; Floor			4,000				3,928				3,928
				9.25%), 6.00% ETP, Due 6/1/21)
Lantos Technologies, Inc. (2)		Medical Device		Term Loan (11.87% PIK (Libor + 10.50%; Floor			2,479				2,466				2,466
				11.50%), 8.91% ETP, Due 5/1/19) (13)
Mederi Therapeutics, Inc. (2)		Medical Device		Term Loan (13.01% cash (Libor + 11.82%; Floor			173				173				163
				12.00%), 6.00% ETP, Due 12/1/17)
				Term Loan (13.01% cash (Libor + 11.82%; Floor			173				173				163
				12.00%), 6.00% ETP, Due 12/1/17)
NinePoint Medical, Inc. (2)		Medical Device		Term Loan (10.12% cash (Libor + 8.75%; Floor			2,667				2,645				2,645
				9.25%), 4.50% ETP, Due 3/1/19)
				Term Loan (10.12% cash (Libor + 8.75%; Floor			1,333				1,320				1,320
				9.25%), 4.50% ETP, Due 3/1/19)
VERO Biotech LLC (2)		Medical Device		Term Loan (9.33% cash (Libor + 8.00%; Floor			4,000				3,914				3,914
				9.25%), 5.00% ETP, Due 1/1/22)
				Term Loan (9.33% cash (Libor + 8.00%; Floor			4,000				3,934				3,934
				9.25%), 5.00% ETP, Due 1/1/22)
Total Non-Affiliate Debt Investments — Life Science											58,038				58,018
Non-Affiliate Debt Investments — Technology — 99.1% (8)
Intelepeer Holdings, Inc.		Communications		Term Loan (11.39% cash (Libor + 9.95%; Floor			4,000				3,888				3,888
				11.25%), 2.50% ETP, Due 7/1/21)
				Term Loan (11.39% cash (Libor + 9.95%; Floor			4,000				3,927				3,927
				11.25%), 2.50% ETP, Due 7/1/21)
				Term Loan (11.39% cash (Libor + 9.95%; Floor			4,000				3,927				3,927
				11.25%), 2.50% ETP, Due 7/1/21)
PebblePost, Inc. (2)		Communications		Term Loan (10.63% cash (Libor + 9.26%; Floor			4,000				3,874				3,874
				10.25%), 4.00% ETP, Due 7/1/21)
				Term Loan (10.63% cash (Libor + 9.26%; Floor			4,000				3,933				3,933
				10.25%), 4.00% ETP, Due 7/1/21)
Le Tote, Inc. (2)		Consumer-related Technologies		Term Loan (11.02% cash (Libor + 9.65%; Floor			4,000				3,960				3,960
				10.15%), 5.00% ETP, Due 3/1/20)
				Term Loan (11.02% cash (Libor + 9.65%; Floor			3,000				2,969				2,969
				10.15%), 5.00% ETP, Due 3/1/20)
SavingStar, Inc. (2)		Consumer-related Technologies		Term Loan (11.77% cash (Libor + 10.40%; Floor			2,167				2,140				2,140
				10.90%), 4.25% ETP, Due 6/1/20)
				Term Loan (11.77% cash (Libor + 10.40%; Floor			1,911				1,849				1,849
				10.90%), 3.80% ETP, Due 11/1/20)
IgnitionOne, Inc. (2)		Internet and Media		Term Loan (11.60% cash (Libor + 10.23%; Floor			3,000				2,832				2,832
				10.23%), 2.00% ETP, Due 4/1/22)

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2017

(Dollars in thousands)

 

						Principal				Cost of				Fair
Portfolio Company (1)(3)		Sector		Type of Investment (4)(7)(9)(10)		Amount				Investments (6)				Value (14)
				Term Loan (11.60% cash (Libor + 10.23%; Floor			3,000				2,832				2,832
				10.23%), 2.00% ETP, Due 4/1/22)
				Term Loan (11.60% cash (Libor + 10.23%; Floor			3,000				2,832				2,832
				10.23%), 2.00% ETP, Due 4/1/22)
				Term Loan (11.60% cash (Libor + 10.23%; Floor			3,000				2,832				2,832
				10.23%), 2.00% ETP, Due 4/1/22)
Jump Ramp Games, Inc. (2)		Internet and Media		Term Loan (11.10% cash (Libor + 9.73%),			4,000				3,942				3,942
				3.00% ETP, Due 4/1/21)
Kixeye, Inc. (2)		Internet and Media		Term Loan (10.97% cash (Libor + 9.60%; Floor			3,000				2,900				2,900
				10.75%), 2.00% ETP, Due 9/1/21)
				Term Loan (10.97% cash (Libor + 9.60%; Floor			3,000				2,945				2,945
				10.75%), 2.00% ETP, Due 9/1/21)
MediaBrix, Inc. (2)		Internet and Media		Term Loan (12.37% cash (Libor + 11.00%; Floor			4,000				3,977				3,977
				11.50%), 3.00% ETP, Due 1/1/20)
Rocket Lawyer Incorporated (2)		Internet and Media		Term Loan (10.77% cash (Libor + 9.40%; Floor			4,000				3,933				3,933
				10.50%), 3.00% ETP, Due 7/1/21)
				Term Loan (10.77% cash (Libor + 9.40%; Floor			4,000				3,933				3,933
				10.50%), 3.00% ETP, Due 7/1/21)
				Term Loan (10.77% cash (Libor + 9.40%; Floor			2,000				1,963				1,963
				10.50%), 3.00% ETP, Due 11/1/21)
Zinio Holdings, LLC (2)		Internet and Media		Term Loan (12.62% cash (Libor + 11.25%; Floor			4,000				3,978				3,978
				11.75%), 6.00% ETP, Due 2/1/20)
The NanoSteel Company, Inc. (2)		Materials		Term Loan (10.87% cash (Libor + 9.50%; Floor			4,653				4,578				4,578
				10.00%), 7.20% ETP, Due 1/1/20)
				Term Loan (10.87% cash (Libor + 9.50%; Floor			2,327				2,289				2,289
				10.00%), 6.45% ETP, Due 1/1/20)
				Term Loan (10.87% cash (Libor + 9.50%; Floor			2,500				2,457				2,457
				10.00%), 5.85% ETP, Due 3/1/20)
Powerhouse Dynamics, Inc. (2)		Power Management		Term Loan (12.07% cash (Libor + 10.70%; Floor			1,250				1,234				1,234
				11.20%), 3.00% ETP, Due 3/1/19)
Luxtera, Inc.		Semiconductors		Term Loan (11.25% cash (Prime + 6.75%),			2,000				1,902				1,902
				Due 3/28/20)
				Term Loan (11.25% cash (Prime + 6.75%),			1,500				1,443				1,443
				Due 3/28/20)
Bridge2 Solutions, LLC. (2)		Software		Term Loan (10.62% cash (Libor + 9.25%; Floor			5,000				4,777				4,777
				10.50%), 2.00% ETP, Due 11/1/21)
				Term Loan (10.62% cash (Libor + 9.25%; Floor			5,000				4,777				4,777
				10.50%), 2.00% ETP, Due 11/1/21)
Digital Signal Corporation (11)(12)		Software		Term Loan (11.62% cash (Libor + 10.25%; Floor			1,290				1,256				1,210
				10.43%), 5.00% ETP, Due 7/1/19)
				Term Loan (11.62% cash (Libor + 10.25%; Floor			1,290				1,256				1,210
				10.43%), 5.00% ETP, Due 7/1/19)
				Term Loan (10.00% cash, Due 12/31/17)			501				501				483
Education Elements, Inc. (2)		Software		Term Loan (11.37% cash (Libor + 10.00%; Floor			800				789				789
				10.50%), 4.00% ETP, Due 1/1/19)
				Term Loan (11.37% cash (Libor + 10.00%; Floor			950				937				937
				10.50%), 4.00% ETP, Due 8/1/19)
Metricly, Inc.		Software		Term Loan (13.62% cash (Libor + 12.25%; Floor			184				184				184
				12.50%), 3.33% ETP, Due 9/1/18)
ShopKeep.com, Inc. (2)		Software		Term Loan (11.32% cash (Libor + 9.95%; Floor			6,000				5,897				5,897
				10.45%), 4.08% ETP, Due 10/1/20)
				Term Loan (11.32% cash (Libor + 9.95%; Floor			4,000				3,924				3,924
				10.45%), 3.55% ETP, Due 2/1/21)
SIGNiX, Inc.		Software		Term Loan (12.37% cash (Libor + 11.00%; Floor			2,180				2,073				1,930
				11.50%), 5.33% ETP, Due 2/1/20)
SilkRoad Technology, Inc. (2)		Software		Term Loan (11.72% cash (Libor + 10.35%; Floor			7,000				6,904				6,904
				10.85%; Ceiling 12.85%), 5.00% ETP, Due 6/1/20)
Weblinc Corporation (2)		Software		Term Loan (11.62% cash (Libor + 10.25%; Floor			3,000				2,913				2,913
				11.25%), 3.00% ETP, Due 3/1/21)
xAd, Inc. (2)		Software		Term Loan (10.07% cash (Libor + 8.70%; Floor			5,000				4,895				4,895
				10.00%), 4.75% ETP, Due 11/1/21)
				Term Loan (10.07% cash (Libor + 8.70%; Floor			5,000				4,895				4,895

 

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2017

(Dollars in thousands)

 

						Principal				Cost of				Fair
Portfolio Company (1)(3)		Sector		Type of Investment (4)(7)(9)(10)		Amount				Investments (6)				Value (14)
				10.00%), 4.75% ETP, Due 11/1/21)
				Term Loan (10.07% cash (Libor + 8.70%; Floor			3,000				2,937				2,937
				10.00%), 4.75% ETP, Due 11/1/21)
				Term Loan (10.07% cash (Libor + 8.70%; Floor			2,000				1,958				1,958
				10.00%), 4.75% ETP, Due 11/1/21)
Total Non-Affiliate Debt Investments — Technology											134,142				133,889
Non-Affiliate Debt Investments — Healthcare information and services — 6.3% (8)
HealthEdge Software, Inc. (2)		Software		Term Loan (9.62% cash (Libor + 8.25%;			5,000				4,819				4,819
				Floor 9.25%), 3.00% ETP, Due 7/1/22)
				Term Loan (9.68% cash (Libor + 8.25%;			3,750				3,693				3,693
				Floor 9.25%), 3.00% ETP, Due 1/1/23)
Total Non-Affiliate Debt Investments — Healthcare information and services											8,512				8,512
Total Non- Affiliate Debt Investments											200,692				200,419
Non-Affiliate Warrant Investments — 6.7% (8)
Non-Affiliate Warrants — Life Science — 1.6% (8)
ACT Biotech Corporation		Biotechnology		604,038 Preferred Stock Warrants							60				—
Alpine Immune Sciences, Inc. (5)		Biotechnology		4,634 Common Stock Warrants							122				—
Argos Therapeutics, Inc. (2)(5)		Biotechnology		73,112 Common Stock Warrants							33				—
Celsion Corporation (5)		Biotechnology		408 Common Stock Warrants							15				—
Rocket Pharmaceuticals Corporation (5)		Biotechnology		7,051 Common Stock Warrants							17				—
Palatin Technologies, Inc. (2)(5)		Biotechnology		608,058 Common Stock Warrants							51				82
Revance Therapeutics, Inc. (5)		Biotechnology		34,113 Common Stock Warrants							68				729
Sample6, Inc. (2)		Biotechnology		661,956 Preferred Stock Warrants							53				25
Strongbridge U.S. Inc. (5)		Biotechnology		160,714 Common Stock Warrants							72				794
Sunesis Pharmaceuticals, Inc. (5)		Biotechnology		2,050 Common Stock Warrants							5				—
vTv Therapeutics Inc. (2)(5)		Biotechnology		95,293 Common Stock Warrants							44				82
Titan Pharmaceuticals, Inc. (2)(5)		Drug Delivery		280,612 Common Stock Warrants							88				30
AccuVein Inc. (2)		Medical Device		75,769 Preferred Stock Warrants							24				27
Aerin Medical, Inc. (2)		Medical Device		1,818,182 Preferred Stock Warrants							66				66
Conventus Orthopaedics, Inc. (2)		Medical Device		720,000 Preferred Stock Warrants							95				95
IntegenX, Inc. (2)		Medical Device		170,646 Preferred Stock Warrants							35				32
Lantos Technologies, Inc. (2)		Medical Device		471,979 Common Stock Warrants							39				145
Mederi Therapeutics, Inc. (2)		Medical Device		248,736 Preferred Stock Warrants							26				—
Mitralign, Inc. (2)		Medical Device		64,190 Common Stock Warrants							52				1
NinePoint Medical, Inc. (2)		Medical Device		29,102 Preferred Stock Warrants							33				2
OraMetrix, Inc. (2)		Medical Device		812,348 Preferred Stock Warrants							78				—
ReShape Lifesciences Inc. (5)		Medical Device		134 Common Stock Warrants							347				—
Tryton Medical, Inc. (2)		Medical Device		122,362 Preferred Stock Warrants							15				12
VERO Biotech LLC (2)		Medical Device		800,000 Common Stock Warrants							53				53
ViOptix, Inc.		Medical Device		375,763 Preferred Stock Warrants							13				—
Total Non-Affiliate Warrants — Life Science											1,504				2,175
Non-Affiliate Warrants — Technology — 4.6% (8)
Ekahau, Inc. (2)		Communications		978,261 Preferred Stock Warrants							32				22
Intelepeer Holdings, Inc.		Communications		2,256,549 Preferred Stock Warrants							149				110
PebblePost, Inc. (2)		Communications		598,850 Preferred Stock Warrants							92				92
Additech, Inc. (2)		Consumer-related Technologies		150,000 Preferred Stock Warrants							33				31
Gwynnie Bee, Inc. (2)		Consumer-related Technologies		268,591 Preferred Stock Warrants							68				816
Le Tote, Inc. (2)		Consumer-related Technologies		202,974 Preferred Stock Warrants							63				363
Rhapsody International Inc. (2)		Consumer-related Technologies		852,273 Common Stock Warrants							164				—
SavingStar, Inc. (2)		Consumer-related Technologies		850,439 Preferred Stock Warrants							104				103
IgnitionOne, Inc. (2)		Internet and Media		262,910 Preferred Stock Warrants							672				668
Jump Ramp Games, Inc. (2)		Internet and Media		159,766 Preferred Stock Warrants							31				31
Kixeye, Inc. (2)		Internet and Media		791,251 Preferred Stock Warrants							75				74
Rocket Lawyer Incorporated (2)		Internet and Media		261,721 Preferred Stock Warrants							91				91
The NanoSteel Company, Inc. (2)		Materials		379,360 Preferred Stock Warrants							187				448
Nanocomp Technologies, Inc. (2)		Networking		1,440,489 Preferred Stock Warrants							67				—
Powerhouse Dynamics, Inc. (2)		Power Management		290,698 Preferred Stock Warrants							28				26
Avalanche Technology, Inc. (2)		Semiconductors		202,602 Preferred Stock Warrants							101				40
eASIC Corporation (2)		Semiconductors		40,445 Preferred Stock Warrants							25				28
Kaminario, Inc.		Semiconductors		1,087,203 Preferred Stock Warrants							59				44
Luxtera, Inc.(2)		Semiconductors		3,546,553 Preferred Stock Warrants							213				361

  

See Notes to Consolidated Financial Statements

 

 

Horizon Technology Finance Corporation and Subsidiaries

 

Consolidated Schedule of Investments (Unaudited)

December 31, 2017

(Dollars in thousands)

 

						Principal				Cost of				Fair
Portfolio Company (1)(3)		Sector		Type of Investment (4)(7)(9)(10)		Amount				Investments (6)				Value (14)
Soraa, Inc. (2)		Semiconductors		203,616 Preferred Stock Warrants							80				438
Bolt Solutions Inc. (2)		Software		202,892 Preferred Stock Warrants							113				99
Bridge2 Solutions, Inc. (2)		Software		125,458 Common Stock Warrants							433				760
Clarabridge, Inc.		Software		53,486 Preferred Stock Warrants							14				82
Digital Signal Corporation		Software		125,116 Common Stock Warrants							32				—
Education Elements, Inc. (2)		Software		238,121 Preferred Stock Warrants							28				28
Lotame Solutions, Inc. (2)		Software		288,115 Preferred Stock Warrants							22				281
Metricly, Inc.		Software		41,569 Common Stock Warrants							48				—
Riv Data Corp. (2)		Software		321,428 Preferred Stock Warrants							12				38
ShopKeep.com, Inc. (2)		Software		193,962 Preferred Stock Warrants							118				138
SIGNiX, Inc.		Software		133,560 Preferred Stock Warrants							225				109
Skyword, Inc.		Software		301,056 Preferred Stock Warrants							48				32
SpringCM, Inc. (2)		Software		2,385,686 Preferred Stock Warrants							55				132
Sys-Tech Solutions, Inc.		Software		375,000 Preferred Stock Warrants							242				464
Visage Mobile, Inc.		Software		1,692,047 Preferred Stock Warrants							19				2
Weblinc Corporation (2)		Software		195,122 Preferred Stock Warrants							42				42
xAd, Inc. (2)		Software		4,343,350 Preferred Stock Warrants							177				177
Total Non-Affiliate Warrants — Technology											3,962				6,170
Non-Affiliate Warrants — Cleantech — 0.1% (8)
Renmatix, Inc.		Alternative Energy		53,022 Preferred Stock Warrants							68				—
Tigo Energy, Inc. (2)		Energy Efficiency		804,604 Preferred Stock Warrants							100				117
Total Non-Affiliate Warrants — Cleantech											168				117
Non-Affiliate Warrants — Healthcare information and services — 0.4% (8)
LifePrint Group, Inc. (2)		Diagnostics		49,000 Preferred Stock Warrants							29				2
ProterixBio, Inc. (2)		Diagnostics		3,156 Common Stock Warrants							54				—
Singulex, Inc.		Other Healthcare		294,231 Preferred Stock Warrants							44				44
Verity Solutions Group, Inc.		Other Healthcare		300,360 Preferred Stock Warrants							100				62
Watermark Medical, Inc. (2)		Other Healthcare		27,373 Preferred Stock Warrants							74				59
HealthEdge Software, Inc. (2)		Software		110,644 Preferred Stock Warrants							46				46
Medsphere Systems Corporation (2)		Software		7,097,792 Preferred Stock Warrants							60				208
Recondo Technology, Inc. (2)		Software		556,796 Preferred Stock Warrants							95				207
Total Non-Affiliate Warrants — Healthcare information and services											502				628
Total Non-Affiliate Warrants											6,136				9,090
Non-Affiliate Other Investments — 5.7% (8)
Espero Pharmaceuticals, Inc.		Biotechnology		Royalty Agreement							5,300				4,700
ZetrOZ, Inc.		Medical Device		Royalty Agreement							305				700
Vette Technology, LLC		Data Storage		Royalty Agreement Due 4/18/2019							4,226				100
Triple Double Holdings, LLC		Software		License Agreement							2,200				2,200
Total Non-Affiliate Other Investments											12,031				7,700
Non-Affiliate Equity — 1.0% (8)
Insmed Incorporated (5)		Biotechnology		33,208 Common Stock							238				1,035
Revance Therapeutics, Inc.(5)		Biotechnology		5,125 Common Stock							73				183
Sunesis Pharmaceuticals, Inc. (5)		Biotechnology		13,082 Common Stock							83				49
SnagAJob.com, Inc.		Consumer-related Technologies		82,974 Common Stock							9				83
TruSignal, Inc.		Software		32,637 Common Stock							41				41
Total Non-Affiliate Equity											444				1,391
Total Non-Affiliate Portfolio Investment Assets										$	219,303			$	218,600
Affiliate Investments — 2.6% (8)