Venture Lending & Leasing IX, Inc. - FORM 10-Q

Venture Lending & Leasing IX, Inc. - FORM 10-Q - May 12, 2020

Attached files

Attached files

Venture Lending & Leasing IX, Inc. Reports

file	filename
EX-32.2 - VLL9INC 10-Q 03.31.2020 EXHIBIT 32.2 - Venture Lending & Leasing IX, Inc.	vll910q033120ex322.htm
EX-32.1 - VLL9INC 10-Q 03.31.2020 EXHIBIT 32.1 - Venture Lending & Leasing IX, Inc.	vll910q033120ex321.htm
EX-31.2 - VLL9INC 10-Q 03.31.2020 EXHIBIT 31.2 - Venture Lending & Leasing IX, Inc.	vll910q033120ex312.htm
EX-31.1 - VLL9INC 10-Q 03.31.2020 EXHIBIT 31.1 - Venture Lending & Leasing IX, Inc.	vll910q033120ex311.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



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

For the quarterly period ended March 31, 2020



[ ]	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 814-01253

Venture Lending & Leasing IX, Inc.

(Exact Name of Registrant as specified in its charter)



Maryland	82-2040715
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

104 La Mesa Drive, Suite 102, Portola Valley, CA	94028
(Address of principal executive offices)	(Zip Code)

(650) 234-4300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

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 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, a non-accelerated filer, a 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 [x]	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]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:



Class		Outstanding as of May 12, 2020
Common Stock, $0.001 par value		100,000

VENTURE LENDING & LEASING IX, INC.

INDEX



PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Statements of Assets and Liabilities (Unaudited)
	As of March 31, 2020 and December 31, 2019

	Condensed Statements of Operations (Unaudited)
	For the three months ended March 31, 2020 and 2019

	Condensed Statements of Changes in Net Assets (Unaudited)
	For the three months ended March 31, 2020 and 2019

	Condensed Statements of Cash Flows (Unaudited)
	For the three months ended March 31, 2020 and 2019

	Condensed Schedules of Investments (Unaudited)
	As of March 31, 2020 and December 31, 2019

	Condensed Schedules of Open Swap Contracts (Unaudited)
	As of March 31, 2020 and December 31, 2019

	Notes to Condensed Financial Statements (Unaudited)

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.	Quantitative and Qualitative Disclosures About Market Risk

Item 4.	Controls and Procedures

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings

Item 1A.	Risk Factors

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.	Defaults Upon Senior Securities

Item 4.	Mine Safety Disclosures

Item 5.	Other Information

Item 6.	Exhibits

SIGNATURES

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

AS OF MARCH 31, 2020 AND DECEMBER 31, 2019



	March 31, 2020			December 31, 2019
ASSETS
Loans, at estimated fair value
(cost of $236,211,507 and $204,215,179)	$	228,875,861		$	203,311,245
Cash and cash equivalents	4,386,565			10,754,759
Dividend and interest receivables	2,880,702			2,701,713
Other assets	1,021,315			939,716
Total assets	237,164,443			217,707,433

LIABILITIES
Borrowings under debt facility	91,500,000			100,000,000
Accrued management fees	—			1,840,000
Derivative liability - interest rate swap	1,956,169			825,574
Accounts payable and other accrued liabilities	1,064,569			1,209,486
Total liabilities	94,520,738			103,875,060

NET ASSETS	$	142,643,705		$	113,832,373

Analysis of Net Assets:

Capital paid in on shares of capital stock	$	181,125,000		$	148,125,000
Total distributable losses	(38,481,295		)	(34,292,627		)
Net assets (equivalent to $1,426.44 and $1,138.32 per share based on 100,000 shares of capital stock outstanding - See Note 5 and Note 11)	$	142,643,705		$	113,832,373

Commitments & Contingent Liabilities:
Unexpired unfunded commitments (See Note 10)	$	88,116,667		$	77,950,000

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019



	For the Three Months Ended March 31, 2020			For the Three Months Ended March 31, 2019

INVESTMENT INCOME:
Interest on loans	$	10,346,918		$	3,964,607
Other interest and other income	500,696			51,238
Total investment income	10,847,614			4,015,845

EXPENSES:
Management fees	1,840,000			1,811,250
Interest expense	1,229,785			716,565
Banking and professional fees	65,016			175,591
Other operating expenses	32,259			33,966
Total expenses	3,167,060			2,737,372
Net investment income	7,680,554			1,278,473

Net realized loss from derivative instruments	(86,059		)	(919		)
Net change in unrealized loss from loans	(6,431,712		)	(12,314		)
Net change in unrealized loss from derivative instruments	(1,130,595		)	(303,362		)
Net realized and change in unrealized loss from loans and derivative instruments	(7,648,366		)	(316,595		)

Net increase in net assets resulting from operations	$	32,188		$	961,878

Amounts per common share:
Net increase in net assets resulting from operations per share	$	0.32		$	9.62
Weighted average shares outstanding	100,000			100,000

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019



	Common Stock
	Shares	Par Value		Additional Paid-in Capital		Total Distributable Earnings (Loss)			Net Assets
Balance at December 31, 2018	100,000	$	100	$	82,524,900	$	(8,436,273	)	$	74,088,727
Net increase in net assets resulting from operations	—	—		—		961,878			961,878
Distributions to shareholder	—	—		—		(18,133,805		)	(18,133,805		)
Contributions from shareholder	—	—		10,000,000		—			10,000,000
Balance at March 31, 2019	100,000	$	100	$	92,524,900	$	(25,608,200	)	$	66,916,800

Balance at December 31, 2019	100,000	$	100	$	148,124,900	$	(34,292,627	)	$	113,832,373
Net increase in net assets resulting from operations	—	—		—		32,188			32,188
Distributions to shareholder	—	—		—		(4,220,856		)	(4,220,856		)
Contributions from shareholder	—	—		33,000,000		—			33,000,000
Balance at March 31, 2020	100,000	$	100	$	181,124,900	$	(38,481,295	)	$	142,643,705

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX INC.

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019



	For the Three Months Ended March 31, 2020			For the Three Months Ended March 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations	$	32,188		$	961,878
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Net realized loss from derivative instruments	86,059			919
Net change in unrealized loss from loans	6,431,712			12,314
Net change in unrealized loss from derivative instruments	1,130,595			303,362
Amortization of deferred costs related to borrowing facility	107,159			105,805
Net increase in dividend and interest receivables	(178,989		)	(465,616		)
Net increase in other assets	(188,758		)	(64,615		)
Net (increase) decrease in accounts payable, other accrued liabilities and accrued management fees	(1,984,916		)	477,808
Origination of loans	(59,383,334		)	(25,387,500		)
Principal payments on loans	27,325,871			5,661,316
Acquisition of equity securities	(4,159,722		)	(1,679,748		)
Net cash used in operating activities	(30,782,135		)	(20,074,077		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distribution to shareholder	—			(16,000,000		)
Contribution from shareholder	33,000,000			10,000,000
Borrowings under debt facility	20,500,000			38,000,000
Repayments of borrowings under debt facility	(29,000,000		)	(10,000,000		)
Payments made for interest rate swap	(86,059		)	(919		)
Net cash provided by financing activities	24,413,941			21,999,081

Net increase (decrease) in cash and cash equivalents	(6,368,194		)	1,925,004

CASH AND CASH EQUIVALENTS:
Beginning of period	10,754,759			832,815
End of period	$	4,386,565		$	2,757,819

SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE PERIOD:
Interest - Debt facility	$	1,136,840		$	563,817
NON-CASH OPERATING AND FINANCING ACTIVITIES:
Distributions of equity securities to shareholder	$	4,220,856		$	2,133,805
Receipt of equity securities as repayment of loans	$	61,134		$	454,057

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULE OF INVESTMENTS (UNAUDITED)

AS OF MARCH 31, 2020



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date

Biotechnology
	Antheia, Inc.		Senior Secured	11.5%		$	1,483,166	$	1,417,002	$	1,417,002	12/1/2022
	Antheia, Inc.		Senior Secured	11.5%		1,484,601		1,460,247		1,460,247		12/1/2022
	Antheia, Inc. Subtotal					2,967,767		2,877,249		2,877,249
	Quartzy, Inc.		Senior Secured	12.0%		742,261		634,792		634,792		8/1/2023
Biotechnology Total		2.5%				$	3,710,028	$	3,512,041	$	3,512,041

Computer & Storage
	Canary Connect, Inc.		Senior Secured	12.8%		$	2,471,925	$	2,380,185	$	2,380,185	3/1/2023
Computer & Storage Total		1.7%				$	2,471,925	$	2,380,185	$	2,380,185

Internet
	Ainsly, Inc. ** ^		Senior Secured	12.5%		$	240,181	$	240,181	$	240,181	8/1/2022
	Ainsly, Inc. ** ^		Senior Secured	12.5%		720,493		665,444		665,444		8/1/2022
	Ainsly, Inc. Subtotal ** ^					960,674		905,625		905,625
	Amino Payments, Inc.		Senior Secured	10.8%		512,757		484,117		484,117		3/1/2022
	Cesium, Inc.		Senior Secured	10.3%		123,899		121,392		121,392		1/1/2023
	Cesium, Inc.		Senior Secured	10.3%		247,716		230,525		230,525		1/1/2023
	Cesium, Inc. Subtotal					371,615		351,917		351,917
	Lukla, Inc.		Senior Secured	12.5%		494,605		420,659		420,659		12/1/2022
	Marley Spoon, Inc. ** ^		Senior Secured	12.0%	2.5%	3,711,213		2,695,361		2,695,361		5/1/2023
	Masse, Inc.		Senior Secured	11.5%		371,262		363,209		363,209		1/1/2023
	Masse, Inc.		Senior Secured	11.5%		371,158		344,464		344,464		10/1/2022
	Masse, Inc. Subtotal					742,420		707,673		707,673
	Merchbar, Inc.		Senior Secured	11.8%		494,809		462,329		462,329		3/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		2,474,151		2,424,623		2,424,623		2/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		4,947,711		4,717,997		4,717,997		12/1/2022
	MyPizza Technologies, Inc. Subtotal					7,421,862		7,142,620		7,142,620
	Nimble Rx, Inc.		Senior Secured	12.0%		1,236,877		1,086,132		1,086,132		2/1/2023
	OneLocal, Inc. ** ^		Senior Secured	12.3%		329,928		298,364		298,364		3/1/2023
	Osix Corporation		Senior Secured	12.3%		72,338		64,592		64,592		12/1/2021
	RenoFi, Inc.		Senior Secured	12.0%		247,417		225,220		225,220		6/1/2023
	Residently USA, LLC ** ^		Senior Secured	12.0%		989,904		852,706		852,706		2/1/2023
	Serface Care, Inc.		Senior Secured	12.3%		588,575		557,469		320,139		2/1/2022
	Serface Care, Inc.		Senior Secured	12.3%		196,240		192,238		110,397		2/1/2022
	Serface Care, Inc. Subtotal					784,815		749,707		430,536
	ShadowApp, PBC		Senior Secured	11.5%		527,409		502,837		502,837		4/1/2022
	Stay Alfred, Inc.		Senior Secured	12.0%		4,947,351		4,601,665		1,518,194		7/1/2023
	Verishop, Inc.		Senior Secured	12.0%		2,473,593		2,327,750		2,327,750		12/1/2023
	Verishop, Inc.		Senior Secured	12.0%		2,474,448		2,425,888		2,425,888		12/1/2023
	Verishop, Inc. Subtotal					4,948,041		4,753,638		4,753,638
Internet Total		16.1%				$	28,794,035	$	26,305,162	$	22,902,520

Medical Devices
	Ablacon, Inc.		Senior Secured	11.0%		$	2,476,001	$	2,334,876	$	2,334,876	3/1/2023
	Ablacon, Inc.		Senior Secured	11.0%		2,476,864		2,423,729		2,423,729		3/1/2023



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	Ablacon, Inc. Subtotal					4,952,865		4,758,605		4,758,605
	Anutra Medical, Inc.		Senior Secured	12.0%		247,398		235,850		235,850		10/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		469,226		445,991		445,991		3/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		520,436		512,952		512,952		6/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		494,948		460,566		460,566		10/1/2023
	CytoVale, Inc.		Senior Secured	12.0%		429,723		423,304		423,304		7/1/2022
	CytoVale, Inc. Subtotal					1,914,333		1,842,813		1,842,813
	eXo Imaging, Inc.		Senior Secured	11.8%		1,979,763		1,788,125		1,788,125		9/1/2023
	Medrobotics Corporation, Inc.		Senior Secured	18.0%		10,000,000		8,793,564		7,734,794		*
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,458,151		3,268,596		3,268,596		4/1/2023
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,461,708		3,408,330		3,408,330		4/1/2023
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		2,968,408		2,901,268		2,901,268		4/1/2023
	NeuMoDx Molecular, Inc. Subtotal					9,888,267		9,578,194		9,578,194
Medical Devices Total		18.2%				$	28,982,626	$	26,997,151	$	25,938,381

Other Healthcare
	Caredox, Inc.		Senior Secured	11.8%		$	824,799	$	799,880	$	629,355	10/1/2021
	Discover Echo, Inc.		Senior Secured	11.0%		244,652		238,122		238,122		12/1/2020
	GoForward, Inc.		Senior Secured	11.5%		6,186,876		5,564,406		5,564,406		9/1/2023
	Grin, Inc.		Senior Secured	12.0%		987,667		925,659		925,659		10/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		1,238,097		1,161,154		1,161,154		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		990,739		970,735		970,735		4/1/2023
	Hello Heart Inc. Subtotal					2,228,836		2,131,889		2,131,889
	HumanAPI, Inc.		Senior Secured	11.8%		1,484,266		1,404,611		1,404,611		10/1/2022
	HumanAPI, Inc.		Senior Secured	11.8%		494,907		486,118		486,118		1/1/2023
	HumanAPI, Inc. Subtotal					1,979,173		1,890,729		1,890,729
	Sparta Software Corporation		Senior Secured	11.5%	2.2%	440,601		425,925		425,925		5/1/2022
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	124,207		115,388		115,388		3/1/2023
	Therapydia, Inc.		Senior Secured	12.5%	1.7%	124,078		124,078		124,078		6/1/2023
	Therapydia, Inc. Subtotal					248,285		239,466		239,466
Other Healthcare Total		8.4%				$	13,140,889	$	12,216,076	$	12,045,551

Other Technology
	Aclima, Inc.		Senior Secured	11.9%		$	1,973,776	$	1,728,612	$	1,728,612	4/1/2022
	Antitoxin Technologies Inc. ** ^		Senior Secured	11.5%		495,059		463,216		463,216		9/1/2022
	Apollo Flight Research Inc.		Senior Secured	11.0%		451,430		434,076		434,076		6/1/2022
	Apollo Flight Research Inc.		Senior Secured	11.0%		247,686		242,749		242,749		1/1/2023
	Apollo Flight Research Inc. Subtotal					699,116		676,825		676,825
	ATeam Army, Inc.		Senior Secured	12.0%		1,237,491		1,151,342		1,151,342		4/1/2023
	Beanfields, PBC		Senior Secured	12.5%		618,272		600,395		600,395		3/1/2023
	Beanfields, PBC		Senior Secured	12.5%		865,083		817,074		817,074		3/1/2023
	Beanfields, PBC Subtotal					1,483,355		1,417,469		1,417,469
	Benson Hill Bio, Inc.		Senior Secured	12.5%		9,894,169		9,012,048		9,012,048		5/1/2024
	Brightside Benefit, Inc.		Senior Secured	12.4%		988,681		972,446		972,446		3/1/2023
	Brightside Benefit, Inc.		Senior Secured	12.1%		635,952		601,611		601,611		9/1/2022
	Brightside Benefit, Inc. Subtotal					1,624,633		1,574,057		1,574,057



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value	Maturity Date
	BW Industries, Inc.		Senior Secured	11.8%		1,979,127	1,931,868	1,931,868	6/1/2023
	BW Industries, Inc.		Senior Secured	11.8%		1,979,218	1,779,010	1,779,010	5/1/2023
	BW Industries, Inc. Subtotal					3,958,345	3,710,878	3,710,878
	DOSH Holdings, Inc.		Senior Secured	11.0%		1,128,684	1,113,090	1,113,090	6/1/2022
	DOSH Holdings, Inc.		Senior Secured	11.0%		4,513,446	4,342,738	4,342,738	6/1/2022
	DOSH Holdings, Inc. Subtotal					5,642,130	5,455,828	5,455,828
	Fitplan, Inc. ** ^		Senior Secured	12.5%		610,988	586,838	572,887	3/1/2022
	Fitplan, Inc. ** ^		Senior Secured	12.5%		407,546	396,093	386,677	3/1/2022
	Fitplan, Inc. ** ^		Senior Secured	12.5%		203,711	203,711	198,868	3/1/2022
	Fitplan, Inc. Subtotal ** ^					1,222,245	1,186,642	1,158,432
	Flo Water, Inc.		Senior Secured	11.8%		1,967,360	1,837,047	1,837,047	12/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		1,483,075	1,453,951	1,159,522	4/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		494,551	483,317	385,444	8/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		2,470,859	2,332,547	1,860,200	1/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		494,427	484,164	386,120	5/1/2023
	Higher Ground Education, Inc. Subtotal					4,942,912	4,753,979	3,791,286
	Hint, Inc.		Senior Secured	11.0%		1,485,252	1,400,261	1,400,261	8/1/2021
	Hint, Inc.		Senior Secured	12.0%		4,906,667	4,200,776	4,200,776	6/1/2023
	Hint, Inc. Subtotal					6,391,919	5,601,037	5,601,037
	Kobo360, Inc. ** ^		Senior Secured	11.3%		127,160	127,161	127,161	9/1/2020
	Kobo360, Inc. ** ^		Senior Secured	11.3%		64,474	63,940	63,940	6/1/2020
	Kobo360, Inc. Subtotal ** ^					191,634	191,101	191,101
	Kogniz, Inc.		Senior Secured	12.8%		236,414	200,799	200,799	9/1/2021
	Lambda School, Inc.		Senior Secured	11.3%		2,476,465	2,476,465	2,476,465	8/1/2023
	Lambda School, Inc.		Senior Secured	11.3%		4,952,227	4,593,081	4,593,081	7/1/2023
	Lambda School, Inc. Subtotal					7,428,692	7,069,546	7,069,546
	Make School, Inc.		Senior Secured	11.3%		594,810	577,804	577,804	8/1/2021
	Nevada Nanotech Systems, Inc.		Senior Secured	12.0%		531,652	507,472	507,472	6/1/2021
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		3,463,392	3,257,873	3,257,873	8/1/2023
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		3,840,683	3,696,292	3,696,292	8/1/2022
	NewGlobe Schools, Inc. Subtotal ** ^					7,304,075	6,954,165	6,954,165
	Noteleaf, Inc.		Senior Secured	12.5%		1,482,717	1,412,369	1,412,369	4/1/2023
	Noteleaf, Inc.		Senior Secured	12.5%		989,470	967,183	967,183	9/1/2023
	Noteleaf, Inc. Subtotal					2,472,187	2,379,552	2,379,552
	Opya, Inc.		Senior Secured	12.0%		989,279	942,427	942,427	1/1/2023
	Ozy Media, Inc.		Senior Secured	12.8%		2,447,760	2,319,228	2,319,228	6/1/2023
	Percepto, Inc.		Senior Secured	11.8%		1,484,553	1,401,915	1,401,915	11/1/2022
	Percepto, Inc.		Senior Secured	13.7%	5.0%	496,398	484,331	484,331	4/1/2023
	Percepto, Inc. Subtotal					1,980,951	1,886,246	1,886,246
	Pitzi, Ltd. ** ^		Senior Secured	12.0%		494,779	349,084	349,084	11/1/2023
	Plant Prefab, Inc.		Senior Secured	11.0%		480,728	472,468	472,468	8/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		391,468	368,676	368,676	2/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		391,539	385,396	385,396	2/1/2022
	Plant Prefab, Inc. Subtotal					1,263,735	1,226,540	1,226,540
	Platform Science, Inc.		Senior Secured	12.0%		980,296	926,220	926,220	2/1/2022
	Plethora, Inc.		Senior Secured	11.5%		1,067,323	979,112	979,112	3/1/2022



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	Redaptive, Inc.		Senior Secured	12.0%		4,945,798		4,731,157		4,731,157		12/1/2022
	Romaine Empire, Inc.		Senior Secured	11.0%	4.1%	2,998,694		2,849,563		2,849,563		2/1/2023
	Romaine Empire, Inc.		Senior Secured	12.3%	3.6%	2,993,011		2,939,760		2,939,760		2/1/2023
	Romaine Empire, Inc. Subtotal					5,991,705		5,789,323		5,789,323
	Saber es Poder, Inc.		Senior Secured	10.5%		406,328		390,596		390,596		3/1/2022
	Saber es Poder, Inc.		Senior Secured	10.5%		218,251		218,932		218,932		5/1/2022
	Saber es Poder, Inc. Subtotal					624,579		609,528		609,528
	Saltbox, Inc.		Senior Secured	12.3%		494,502		470,723		470,723		6/1/2023
	Strong Arm Technologies, Inc.		Senior Secured	12.0%		560,874		547,438		547,438		5/1/2021
	Sustainable Living Partners, LLC		Senior Secured	12.5%		4,945,506		4,233,601		4,233,601		8/1/2023
	Theatro Labs, Inc.		Senior Secured	12.0%		1,234,821		1,205,501		1,205,501		8/1/2022
	Thras.io, Inc.		Senior Secured	12.0%	47.3%	467,000		467,000		467,000		7/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	189,410		189,410		189,410		5/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	47.3%	92,855		92,855		92,855		8/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	190,534		190,534		190,534		4/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	282,092		282,092		282,092		6/1/2024
	Thras.io, Inc.		Senior Secured	12.0%		287,043		257,040		257,040		4/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	375,444		375,444		375,444		6/1/2024
	Thras.io, Inc. Subtotal					1,884,378		1,854,375		1,854,375
	Veev Group, Inc.		Senior Secured	12.5%		723,825		700,901		700,901		12/1/2021
	Veev Group, Inc.		Senior Secured	12.5%		1,236,721		1,071,046		1,071,046		6/1/2023
	Veev Group, Inc.		Senior Secured	12.5%		3,710,875		3,623,303		3,623,303		6/1/2023
	Veev Group, Inc. Subtotal					5,671,421		5,395,250		5,395,250
	Velo Holdings Limited		Senior Secured	12.0%		2,472,551		2,347,145		2,347,145		6/1/2022
	Virtuix Holdings, Inc.		Senior Secured	12.3%		211,004		207,204		140,632		4/1/2022
	Voodoo Manufacturing, Inc.		Senior Secured	12.0%		305,414		285,860		285,860		3/1/2022
	Wheels Labs, Inc.		Senior Secured	12.5%		4,320,312		4,195,490		4,195,490		8/1/2022
	Wine Plum, Inc.		Senior Secured	12.5%		988,885		947,268		947,268		9/1/2022
Other Technology Total		67.9%				$	104,167,847	$	97,898,139	$	96,840,664

Security
	Axonius, Inc.		Senior Secured	12.0%		$	314,350	$	305,869	$	305,869	9/1/2021
	Nok Nok Labs, Inc.		Senior Secured	12.5%		774,598		760,459		760,459		6/1/2022
	Safetrust Holdings, Inc.		Senior Secured	12.5%		266,432		252,465		252,465		6/1/2021
Security Total		0.9%				$	1,355,380	$	1,318,793	$	1,318,793

Semiconductors & Equipment
	ETA Compute, Inc.		Senior Secured	12.0%		$	1,037,709	$	1,007,149	$	1,007,149	11/1/2021
Semiconductor & Equipment Total		0.7%				$	1,037,709	$	1,007,149	$	1,007,149

Software
	Alkanza Inc.		Senior Secured	18.0%		$	332,684	$	235,479	$	69,646	*
	ArborMetrix, Inc.		Senior Secured	12.5%		1,483,636		1,401,236		1,401,236		6/1/2023
	Blockdaemon, Inc.		Senior Secured	11.3%		148,696		139,359		139,359		8/1/2021
	Blockdaemon, Inc.		Senior Secured	11.3%		225,788		218,097		218,097		6/1/2022
	Blockdaemon, Inc. Subtotal					374,484		357,456		357,456
	Canary Technologies Corporation		Senior Secured	11.5%		247,557		228,672		228,672		6/1/2023
	Censia Inc.		Senior Secured	11.0%		990,055		937,147		937,147		10/1/2022
	Cloudleaf, Inc.		Senior Secured	12.0%		1,484,508		1,360,372		1,360,372		8/1/2023
	Dynamics, Inc.		Senior Secured	12.5%		4,484,379		4,088,626		4,088,626		8/1/2021
	Eskalera, Inc.		Senior Secured	10.5%		990,784		950,628		950,628		3/1/2023



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	ICX Media, Inc.		Senior Secured	12.5%		437,048		409,004		409,004		5/1/2022
	ICX Media, Inc.		Senior Secured	12.5%		247,385		241,356		241,356		5/1/2023
	ICX Media, Inc. Subtotal					684,433		650,360		650,360
	Invoice2Go, Inc.		Senior Secured	12.0%		931,701		920,554		920,554		7/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		989,486		973,337		973,337		3/1/2023
	Invoice2Go, Inc.		Senior Secured	12.0%		988,333		754,275		754,275		3/1/2024
	Invoice2Go, Inc.		Senior Secured	12.0%		989,059		975,431		975,431		11/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		813,948		739,479		739,479		3/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		989,779		943,482		943,482		6/1/2023
	Invoice2Go, Inc. Subtotal					5,702,306		5,306,558		5,306,558
	Ipolipo, Inc.		Senior Secured	12.0%		2,101,963		1,999,076		1,376,717		6/1/2022
	Lucideus, Inc.		Senior Secured	12.0%		494,836		453,776		453,776		2/1/2023
	Medable, Inc.		Senior Secured	12.0%		989,590		970,772		970,772		2/1/2023
	Medable, Inc.		Senior Secured	12.0%		1,978,940		1,832,432		1,832,432		2/1/2023
	Medable, Inc. Subtotal					2,968,530		2,803,204		2,803,204
	Metawave Corporation		Senior Secured	12.0%		859,320		833,192		833,192		7/1/2022
	Migo Money, Inc. ** ^		Senior Secured	12.5%		407,368		407,367		407,367		3/1/2022
	Migo Money, Inc. ** ^		Senior Secured	12.3%		542,392		513,903		513,903		12/1/2021
	Migo Money, Inc. Subtotal ** ^					949,760		921,270		921,270
	OrderGroove, Inc.		Senior Secured	12.0%		1,236,732		1,214,728		1,214,728		6/1/2023
	OrderGroove, Inc.		Senior Secured	12.0%		1,236,449		1,216,208		1,216,208		6/1/2023
	OrderGroove, Inc.		Senior Secured	12.0%		2,471,253		2,364,150		2,364,150		6/1/2023
	OrderGroove, Inc. Subtotal					4,944,434		4,795,086		4,795,086
	Owl Cameras, Inc.		Senior Secured	18.0%		804,813		509,933		472,537		*
	PlushCare, Inc.		Senior Secured	11.8%		873,310		837,514		837,514		5/1/2022
	PlushCare, Inc.		Senior Secured	11.8%		655,526		643,207		643,207		5/1/2022
	PlushCare, Inc. Subtotal					1,528,836		1,480,721		1,480,721
	Reciprocity, Inc.		Senior Secured	12.0%		1,286,133		1,147,974		1,147,974		3/1/2023
	Resilio, Inc.		Senior Secured	12.8%		125,188		125,188		125,188		5/1/2021
	Resilio, Inc.		Senior Secured	12.8%		108,418		97,098		97,098		3/1/2021
	Resilio, Inc. Subtotal					233,606		222,286		222,286
	Splitwise, Inc.		Senior Secured	12.3%		494,607		470,782		470,782		12/1/2022
	Stitch Labs, Inc.		Senior Secured	12.0%		1,175,990		1,115,165		770,117		2/1/2022
	Stitch Labs, Inc.		Senior Secured	12.3%		677,397		666,501		460,277		6/1/2022
	Stitch Labs, Inc. Subtotal					1,853,387		1,781,666		1,230,394
	Swivel, Inc.		Senior Secured	12.0%		234,504		234,504		234,504		10/1/2022
	Swivel, Inc.		Senior Secured	12.0%		221,456		207,465		207,465		8/1/2022
	Swivel, Inc. Subtotal					455,960		441,969		441,969
	Trendalytics Innovation Labs, Inc.		Senior Secured	12.8%		270,942		246,498		201,378		6/1/2022
	Truthset, Inc.		Senior Secured	10.5%		371,541		340,997		340,997		2/1/2023
	Truthset, Inc.		Senior Secured	10.5%		371,627		371,627		371,627		5/1/2023
	Truthset, Inc. Subtotal					743,168		712,624		712,624
	Venuetize, LLC		Senior Secured	12.3%		194,670		179,119		179,119		4/1/2022
	Workspot, Inc.		Senior Secured	12.0%		742,126		724,043		724,043		10/1/2022
	Workspot, Inc.		Senior Secured	12.0%		720,715		671,769		671,769		8/1/2022
	Workspot, Inc.		Senior Secured	12.0%		471,495		447,746		447,746		9/1/2021
	Workspot, Inc. Subtotal					1,934,336		1,843,558		1,843,558
Software Total		24.5%				$	38,894,127	$	36,359,268	$	34,937,288

Technology Services
	Callisto Media, Inc.		Senior Secured	10.3%		$	2,478,241	$	2,190,696	$	2,190,696	6/1/2023



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	Callisto Media, Inc.		Senior Secured	10.0%		2,478,473		2,428,152		2,428,152		9/1/2023
	Callisto Media, Inc. Subtotal					4,956,714		4,618,848		4,618,848
	Keyo AI Inc.		Senior Secured	10.0%		390,674		373,475		373,475		2/1/2022
	Klar Holdings Limited ** ^		Senior Secured	12.5%		247,262		199,346		199,346		10/1/2022
	Leap Services, Inc.		Senior Secured	12.0%		451,635		432,328		432,328		6/1/2022
	Lifit, Inc. ** ^		Senior Secured	12.0%		480,317		448,866		448,866		8/1/2022
	Lifit, Inc. ** ^		Senior Secured	12.0%		494,633		485,823		485,823		10/1/2022
	Lifit, Inc. Subtotal ** ^					974,950		934,689		934,689
	Loansnap Holdings Inc. **		Senior Secured	11.0%		2,483,237		2,389,790		2,389,790		6/1/2022
	Relimetrics, Inc.		Senior Secured	11.3%		282,148		272,064		272,064		1/1/2022
	Solugen, Inc.		Senior Secured	11.0%		2,475,763		2,306,418		2,306,418		1/1/2023
	Solugen, Inc.		Senior Secured	11.0%		1,238,118		1,216,071		1,216,071		1/1/2023
	Solugen, Inc. Subtotal					3,713,881		3,522,489		3,522,489
	Thrive Financial, Inc. **		Senior Secured	11.5%		989,725		938,096		938,096		10/1/2022
	Zeel Networks, Inc.		Senior Secured	11.0%		2,049,602		1,965,336		1,741,082		3/1/2022
Technology Services Total		10.8%				$	16,539,828	$	15,646,461	$	15,422,207

Wireless
	AirVine Scientific, Inc.		Senior Secured	12.0%		$	120,163	$	117,131	$	117,131	9/1/2022
	AirVine Scientific, Inc.		Senior Secured	12.0%		123,675		116,401		116,401		9/1/2022
	AirVine Scientific, Inc. Subtotal					243,838		233,532		233,532
	Parallel Wireless, Inc.		Senior Secured	11.8%		3,217,115		3,144,307		3,144,307		9/1/2023
	Parallel Wireless, Inc.		Senior Secured	11.8%		3,218,054		3,145,691		3,145,691		8/1/2023
	Parallel Wireless, Inc.		Senior Secured	11.8%		6,434,738		6,047,552		6,047,552		6/1/2023
	Parallel Wireless, Inc. Subtotal					12,869,907		12,337,550		12,337,550
Wireless Total		8.8%				$	13,113,745	$	12,571,082	$	12,571,082
Grand Total		160.5%				$	252,208,139	$	236,211,507	$	228,875,861

* As of March 31, 2020, loans with a cost basis of $9.5 million and a fair value of $8.3 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no income has been recognized.

**Indicates assets that the Fund deems “non-qualifying assets." As of March 31, 2020, 8.3% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an "eligible portfolio company," as defined in Section 2(a)(46)) represent at least 70% of its total assets. As part of this calculation, the numerator consists of the value of the Fund's investments in all eligible portfolio companies, and the denominator consists of total assets less those assets described in Section 55(a)(7) of the 1940 Act.

^ Entity is not domiciled in the United States and does not have its principal place of business in the United States.

(a) The percentage of net assets that each industry group represents is shown with the industry totals (the sum of the percentages does not equal 100% because the percentages are based on net assets as opposed to total loans).

(b) The interest rate is the designated annual interest rate exclusive of any original issue discount, fees or end of term payment.

(c) The end of term payments are contractually due on the maturity date and are in addition to the interest rate shown. End of term payments are the percentage of the final payment divided by the original loan amount and are amortized over the full term of the loan.

As of March 31, 2020, all loans were made to non-affiliates.

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULE OF INVESTMENTS (UNAUDITED)

AS OF DECEMBER 31, 2019



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date

Biotechnology
	Antheia, Inc.		Senior Secured	11.5%		$	1,483,639	$	1,408,221	$	1,408,221	12/1/2022
	Antheia, Inc.		Senior Secured	11.5%		1,485,034		1,457,221		1,457,221		12/1/2022
	Antheia, Inc. Subtotal					2,968,673		2,865,442		2,865,442
	Quartzy, Inc.		Senior Secured	12.0%		742,489		624,980		624,980		8/1/2023
Biotechnology Total		3.1%				$	3,711,162	$	3,490,422	$	3,490,422

Computers & Storage
	Canary Connect, Inc.		Senior Secured	12.8%		$	2,472,801	$	2,370,284	$	2,370,284	3/1/2023
Computers & Storage Total		2.1%				$	2,472,801	$	2,370,284	$	2,370,284

Enterprise Networking
	SnapRoute, Inc.		Senior Secured	18.0%		$	2,556,019	$	112,500	$	112,500	*
Enterprise Networking Total		0.1%				$	2,556,019	$	112,500	$	112,500

Internet
	Ainsly, Inc.**^		Senior Secured	12.5%		$	741,853	$	677,056	$	677,056	8/1/2022
	Ainsly, Inc.**^		Senior Secured	12.5%		247,301		247,301		247,301		8/1/2022
	Ainsly, Inc.**^ Subtotal					989,154		924,357		924,357
	Amino Payments, Inc.		Senior Secured	10.8%		532,709		499,394		499,394		3/1/2022
	Cesium, Inc.		Senior Secured	10.3%		247,773		228,311		228,311		1/1/2023
	Cesium, Inc.		Senior Secured	10.3%		123,007		120,175		120,175		1/1/2023
	Cesium, Inc. Subtotal					370,780		348,486		348,486
	FindShadow, PBC		Senior Secured	11.5%		582,658		552,638		552,638		4/1/2022
	Lukla, Inc.		Senior Secured	12.5%		494,770		411,213		411,213		12/1/2022
	Marley Spoon, Inc.**^		Senior Secured	12.0%	2.5%	3,712,354		2,605,484		2,605,484		5/1/2023
	Masse, Inc.		Senior Secured	11.5%		371,266		340,411		340,411		10/1/2022
	Masse, Inc.		Senior Secured	11.5%		371,367		362,237		362,237		1/1/2023
	Masse, Inc. Subtotal					742,633		702,648		702,648
	Merchbar, Inc.		Senior Secured	11.8%		494,959		458,681		458,681		3/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		2,474,878		2,419,067		2,419,067		2/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		4,949,181		4,687,370		4,687,370		12/1/2022
	My Pizza Technologies, Inc. Subtotal					7,424,059		7,106,437		7,106,437
	Nimble Rx, Inc.		Senior Secured	12.0%		1,237,263		1,068,622		1,068,622		2/1/2023
	Osix Corporation		Senior Secured	12.3%		81,469		71,706		71,706		12/1/2021
	Protecht, Inc.		Senior Secured	12.5%		814,144		782,670		782,670		12/1/2021
	Serface Care, Inc.		Senior Secured	12.3%		655,700		617,093		466,871		2/1/2022
	Serface Care, Inc.		Senior Secured	12.3%		218,620		213,641		161,633		2/1/2022
	Serface Care, Inc. Subtotal					874,320		830,734		628,504
	Stay Alfred, Inc.		Senior Secured	12.0%		4,948,899		4,567,733		4,567,733		7/1/2023
	Thrive Market, Inc.		Senior Secured	12.3%		6,444,148		6,285,233		6,285,233		4/1/2022
	Verishop, Inc.		Senior Secured	12.0%		2,470,833		2,419,085		2,419,085		12/1/2023
	Verishop, Inc.		Senior Secured	12.0%		2,474,370		2,315,633		2,315,633		12/1/2023
	Verishop, Inc. Subtotal					4,945,203		4,734,718		4,734,718
Internet Total		27.9%				$	34,689,522	$	31,950,754	$	31,748,524



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
Medical Devices
	Ablacon, Inc.		Senior Secured	11.0%		$	2,476,651	$	2,318,784	$	2,318,784	3/1/2023
	Anutra Medical, Inc.		Senior Secured	12.0%		247,474		234,112		234,112		10/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		570,096		561,077		561,077		6/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		520,387		491,789		491,789		3/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		469,059		461,375		461,375		7/1/2022
	CytoVale, Inc. Subtotal					1,559,542		1,514,241		1,514,241
	Medrobotics Corporation, Inc.		Senior Secured	12.0%		9,879,965		8,717,603		8,717,603		6/1/2021
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,462,834		3,402,907		3,402,907		4/1/2023
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		3,459,382		3,247,068		3,247,068		4/1/2023
	NeuMoDx Molecular, Inc.		Senior Secured	12.0%		2,969,337		2,893,992		2,893,992		4/1/2023
	NeuMoDx Molecular, Inc. Subtotal					9,891,553		9,543,967		9,543,967
Medical Devices Total		19.6%				$	24,055,185	$	22,328,707	$	22,328,707

Other Healthcare
	Caredox, Inc.		Senior Secured	11.8%		$	941,631	$	909,177	$	909,177	10/1/2021
	Discover Echo, Inc.		Senior Secured	11.0%		321,838		310,782		310,782		12/1/2020
	GoForward, Inc.		Senior Secured	11.5%		6,188,651		5,511,946		5,511,946		9/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		1,238,420		1,152,819		1,152,819		4/1/2023
	HumanAPI, Inc.		Senior Secured	11.8%		495,054		485,091		485,091		1/1/2023
	HumanAPI, Inc.		Senior Secured	11.8%		1,484,721		1,392,560		1,392,560		10/1/2022
	HumanAPI, Inc. Subtotal					1,979,775		1,877,651		1,877,651
	Sparta Software Corporation		Senior Secured	11.5%	2.2%	483,127		465,420		465,420		5/1/2022
	Therapydia, Inc.		Senior Secured	12.5%	1.7%	123,953		123,953		123,953		6/1/2023
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	124,078		114,085		114,085		3/1/2023
	Therapydia, Inc. Subtotal					248,031		238,038		238,038
Other Healthcare Total		9.2%				$	11,401,473	$	10,465,833	$	10,465,833

Other Technology
	Aclima, Inc.		Senior Secured	12.0%		$	2,487,792	$	2,434,107	$	2,434,107	*
	Antitoxin Technologies Inc.**^		Senior Secured	11.5%		495,197		458,025		458,025		9/1/2022
	Apollo Flight Research Inc.		Senior Secured	11.0%		495,063		474,151		474,151		6/1/2022
	AvantStay, Inc.		Senior Secured	11.0%		990,006		950,646		950,646		6/1/2022
	Beanfields, PBC		Senior Secured	12.5%		865,388		811,782		811,782		3/1/2023
	Brightside Benefit, Inc.		Senior Secured	12.4%		989,026		970,529		970,529		3/1/2023
	Brightside Benefit, Inc.		Senior Secured	12.1%		689,624		649,139		649,139		9/1/2022
	Brightside Benefit, Inc. Subtotal					1,678,650		1,619,668		1,619,668
	BW Industries, Inc.		Senior Secured	11.8%		1,979,730		1,927,230		1,927,230		6/1/2023
	BW Industries, Inc.		Senior Secured	11.8%		1,979,819		1,757,319		1,757,319		5/1/2023
	BW Industries, Inc. Subtotal					3,959,549		3,684,549		3,684,549
	DOSH Holdings, Inc.		Senior Secured	11.0%		1,237,779		1,218,953		1,218,953		6/1/2022
	DOSH Holdings, Inc.		Senior Secured	11.0%		4,949,699		4,743,974		4,743,974		6/1/2022
	DOSH Holdings, Inc. Subtotal					6,187,478		5,962,927		5,962,927
	Fitplan, Inc.**^		Senior Secured	12.5%		451,727		437,616		437,616		3/1/2022
	Fitplan, Inc.**^		Senior Secured	12.5%		677,222		647,498		647,498		3/1/2022
	Fitplan, Inc.**^		Senior Secured	12.5%		225,795		225,795		225,795		3/1/2022
	Fitplan, Inc.**^ Subtotal					1,354,744		1,310,909		1,310,909
	Higher Ground Education, Inc.		Senior Secured	12.5%		2,471,753		2,313,924		2,313,924		1/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		1,483,595		1,450,927		1,450,927		4/1/2023



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	Higher Ground Education, Inc.		Senior Secured	12.5%		494,598		483,148		483,148		5/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		494,718		482,359		482,359		8/1/2023
	Higher Ground Education, Inc. Subtotal					4,944,664		4,730,358		4,730,358
	Hint, Inc.		Senior Secured	11.0%		1,724,265		1,610,424		1,610,424		8/1/2021
	Kobo360, Inc.**^		Senior Secured	11.3%		188,120		188,120		188,120		9/1/2020
	Kobo360, Inc.**^		Senior Secured	11.3%		127,168		125,342		125,342		6/1/2020
	Kobo360, Inc.**^ Subtotal					315,288		313,462		313,462
	Kogniz, Inc.		Senior Secured	12.8%		271,626		225,274		225,274		9/1/2021
	Make School, Inc.		Senior Secured	11.3%		690,328		667,484		667,484		8/1/2021
	Nevada Nanotech Systems, Inc.		Senior Secured	12.0%		628,788		595,193		595,193		6/1/2021
	NewGlobe Schools, Inc.		Senior Secured	12.5%		3,954,583		3,784,146		3,784,146		8/1/2022
	Noteleaf, Inc.		Senior Secured	12.5%		1,483,247		1,404,471		1,404,471		4/1/2023
	Opya, Inc.		Senior Secured	12.0%		989,594		936,064		936,064		1/1/2023
	Percepto, Inc.		Senior Secured	11.8%		1,485,000		1,390,197		1,390,197		11/1/2022
	Pitzi, Ltd.**^		Senior Secured	12.0%		494,932		337,890		337,890		11/1/2023
	Plant Prefab, Inc.		Senior Secured	11.0%		436,815		429,152		429,152		2/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		495,230		485,444		485,444		8/1/2022
	Plant Prefab, Inc.		Senior Secured	11.0%		436,736		408,403		408,403		2/1/2022
	Plant Prefab, Inc. Subtotal					1,368,781		1,322,999		1,322,999
	Platform Science, Inc.		Senior Secured	12.0%		1,092,405		1,025,274		1,025,274		2/1/2022
	Plethora, Inc.		Senior Secured	11.5%		1,143,203		1,040,015		1,040,015		3/1/2022
	Redaptive, Inc.		Senior Secured	12.0%		4,947,392		4,702,878		4,702,878		12/1/2022
	Romaine Empire, Inc.		Senior Secured	11.0%	4.1%	2,989,549		2,821,203		2,821,203		2/1/2023
	Romaine Empire, Inc.		Senior Secured	12.3%	3.6%	2,984,037		2,923,783		2,923,783		2/1/2023
	Romaine Empire, Inc. Subtotal					5,973,586		5,744,986		5,744,986
	Saber es Poder, Inc.		Senior Secured	10.5%		451,402		431,977		431,977		3/1/2022
	Saber es Poder, Inc.		Senior Secured	10.5%		240,399		241,229		241,229		5/1/2022
	Saber es Poder, Inc. Subtotal					691,801		673,206		673,206
	Saltbox, Inc.		Senior Secured	12.3%		494,667		468,114		468,114		6/1/2023
	SkyKick, Inc.		Senior Secured	11.0%		4,949,290		4,766,396		4,766,396		6/1/2022
	Strong Arm Technologies, Inc.		Senior Secured	12.0%		671,229		652,092		652,092		5/1/2021
	Sustainable Living Partners, LLC		Senior Secured	12.5%		4,947,179		4,164,487		4,164,487		8/1/2023
	Theatro Labs, Inc.		Senior Secured	12.0%		1,343,387		1,308,538		1,308,538		8/1/2022
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	185,880		185,880		185,880		5/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	281,514		250,101		250,101		4/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	186,943		186,943		186,943		4/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	47.3%	91,070		91,070		91,070		8/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	368,336		368,336		368,336		6/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	45.1%	276,852		276,852		276,852		6/1/2024
	Thras.io, Inc.		Senior Secured	12.0%	47.3%	457,896		457,896		457,896		7/1/2024
	Thras.io, Inc. Subtotal					1,848,491		1,817,078		1,817,078
	Veev Group, Inc.		Senior Secured	12.5%		814,961		785,872		785,872		12/1/2021
	Velo Holdings Limited		Senior Secured	12.0%		2,473,358		2,326,791		2,326,791		6/1/2022
	Virtuix Holdings, Inc.		Senior Secured	12.3%		232,911		228,261		228,261		4/1/2022
	Voodoo Manufacturing, Inc.		Senior Secured	12.0%		338,714		314,676		314,676		3/1/2022
	Wheels Labs, Inc.		Senior Secured	12.5%		4,448,446		4,301,016		4,301,016		8/1/2022
	Wine Plum, Inc.		Senior Secured	12.5%		989,226		940,635		940,635		9/1/2022
Other Technology Total		61.7%				$	74,265,209	$	70,285,041	$	70,285,041

Security
	Axonius, Inc.		Senior Secured	12.0%		$	361,483	$	350,280	$	350,280	9/1/2021



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	Nok Nok Labs, Inc.		Senior Secured	12.5%		848,037		831,014		831,014		6/1/2022
	Safetrust Holdings, Inc.		Senior Secured	12.5%		314,927		295,554		295,554		6/1/2021
Security Total		1.3%				$	1,524,447	$	1,476,848	$	1,476,848

Semiconductors & Equipment
	ETA Compute, Inc.		Senior Secured	12.0%		$	1,176,312	$	1,137,034	$	1,137,034	11/1/2021
Semiconductors & Equipment Total		1.0%				$	1,176,312	$	1,137,034	$	1,137,034

Software
	Alkanza Inc.		Senior Secured	18.0%		$	677,531	$	317,479	$	160,154	*
	ArborMetrix, Inc.		Senior Secured	12.5%		1,484,138		1,392,854		1,392,854		6/1/2023
	Blockdaemon, Inc.		Senior Secured	11.3%		247,542		238,275		238,275		6/1/2022
	Blockdaemon, Inc.		Senior Secured	11.3%		172,574		160,080		160,080		8/1/2021
	Blocdaemon, Inc. Subtotal					420,116		398,355		398,355
	Canary Technologies Corporation		Senior Secured	11.5%		247,445		227,240		227,240		6/1/2023
	Censia Inc.		Senior Secured	11.0%		990,325		929,044		929,044		10/1/2022
	Cloudleaf, Inc.		Senior Secured	12.0%		1,484,964		1,348,759		1,348,759		8/1/2023
	Dynamics, Inc.		Senior Secured	12.5%		5,196,946		4,670,012		4,670,012		8/1/2021
	Eskalera, Inc.		Senior Secured	10.5%		991,021		946,027		946,027		3/1/2023
	ICX Media, Inc.		Senior Secured	12.5%		480,312		446,415		446,415		5/1/2022
	Interana, Inc.		Senior Secured	11.3%		1,880,980		1,838,925		1,838,925		6/1/2021
	Invoice2Go, Inc.		Senior Secured	12.0%		902,694		811,358		811,358		3/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		988,950		975,628		975,628		7/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		989,381		973,707		973,707		11/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		989,795		971,709		971,709		3/1/2023
	Invoice2Go, Inc.		Senior Secured	12.0%		988,333		938,608		938,608		6/1/2023
	Invoice2Go, Inc. Subtotal					4,859,153		4,671,010		4,671,010
	Ipolipo, Inc.		Senior Secured	12.0%		2,181,071		2,058,285		2,058,285		6/1/2022
	Lucideus, Inc.		Senior Secured	12.0%		494,988		448,935		448,935		2/1/2023
	Medable, Inc.		Senior Secured	12.0%		989,897		968,703		968,703		2/1/2023
	Medable, Inc.		Senior Secured	12.0%		1,979,560		1,815,140		1,815,140		2/1/2023
	Medable, Inc. Subtotal					2,969,457		2,783,843		2,783,843
	Metawave Corporation		Senior Secured	12.0%		937,979		906,739		906,739		7/1/2022
	Migo Money, Inc.**^		Senior Secured	12.5%		451,529		451,529		451,529		3/1/2022
	Migo Money, Inc.**^		Senior Secured	12.3%		610,858		574,763		574,763		12/1/2021
	Migo Money, Inc.**^ Subtotal					1,062,387		1,026,292		1,026,292
	OrderGroove, Inc.		Senior Secured	12.0%		2,472,099		2,352,429		2,352,429		6/1/2023
	OrderGroove, Inc.		Senior Secured	12.0%		1,236,848		1,214,197		1,214,197		6/1/2023
	OrderGroove, Inc.		Senior Secured	12.0%		1,237,122		1,212,501		1,212,501		6/1/2023
	OrderGroove, Inc. Subtotal					4,946,069		4,779,127		4,779,127
	Owl Cameras, Inc.		Senior Secured	18.0%		3,461,552		2,866,672		2,322,293		*
	PlushCare, Inc.		Senior Secured	11.8%		721,024		706,066		706,066		5/1/2022
	PlushCare, Inc.		Senior Secured	11.8%		960,569		917,175		917,175		5/1/2022
	PlushCare, Inc. Subtotal					1,681,593		1,623,241		1,623,241
	Ready Education Inc.**^		Senior Secured	11.5%		180,541		180,541		180,541		9/1/2021
	Ready Education Inc.**^		Senior Secured	11.5%		349,214		349,214		349,214		9/1/2021
	Ready Education, Inc.**^ Subtotal					529,755		529,755		529,755
	Resilio, Inc.		Senior Secured	12.8%		149,688		149,688		149,688		5/1/2021
	Resilio, Inc.		Senior Secured	12.8%		133,441		116,663		116,663		3/1/2021
	Resilio, Inc. Subtotal					283,129		266,351		266,351
	Splitwise, Inc.		Senior Secured	12.3%		494,768		467,646		467,646		12/1/2022
	Stitch Labs, Inc.		Senior Secured	12.0%		1,310,479		1,234,947		1,234,947		2/1/2022
	Stitch Labs, Inc.		Senior Secured	12.3%		741,828		728,702		728,702		6/1/2022



Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	Stitch Labs, Inc. Subtotal					2,052,307		1,963,649		1,963,649
	Swivel, Inc.		Senior Secured	12.0%		247,319		247,319		247,319		10/1/2022
	Swivel, Inc.		Senior Secured	12.0%		240,927		224,342		224,342		8/1/2022
	Swivel, Inc. Subtotal					488,246		471,661		471,661
	Talla, Inc.		Senior Secured	12.5%		480,218		448,442		448,442		5/1/2022
	Trendalytics Innovation Labs, Inc.		Senior Secured	12.8%		296,547		267,283		267,283		6/1/2022
	Truthset, Inc.		Senior Secured	10.5%		371,714		371,714		371,714		5/1/2023
	Truthset, Inc.		Senior Secured	10.5%		371,630		337,302		337,302		2/1/2023
	Truthset, Inc. Subtotal					743,344		709,016		709,016
	Venuetize, LLC		Senior Secured	12.3%		214,880		195,955		195,955		4/1/2022
	Workspot, Inc.		Senior Secured	12.0%		742,358		721,400		721,400		10/1/2022
	Workspot, Inc.		Senior Secured	12.0%		742,204		684,512		684,512		8/1/2022
	Workspot, Inc.		Senior Secured	12.0%		542,189		510,896		510,896		9/1/2021
	Workspot, Inc. Subtotal					2,026,751		1,916,808		1,916,808
Software Total		35.3%				$	44,057,972	$	40,915,820	$	40,214,116

Technology Services
	Callisto Media, Inc.		Senior Secured	10.3%		$	2,475,086	$	2,171,160	$	2,171,160	6/1/2023
	Keyo AI Inc.		Senior Secured	10.0%		436,352		414,912		414,912		2/1/2022
	Klar Holdings Limited**^		Senior Secured	12.5%		247,346		192,549		192,549		10/1/2022
	Leap Services, Inc.		Senior Secured	12.0%		494,731		471,508		471,508		6/1/2022
	Lifit, Inc.**^		Senior Secured	12.0%		494,641		457,564		457,564		8/1/2022
	Lifit, Inc.**^		Senior Secured	12.0%		494,791		484,576		484,576		10/1/2022
	Lift, Inc.**^ Subtotal					989,432		942,140		942,140
	Loansnap Holdings Inc.**		Senior Secured	11.0%		2,723,258		2,610,640		2,610,640		6/1/2022
	Relimetrics, Inc.		Senior Secured	11.3%		316,328		303,649		303,649		1/1/2022
	Solugen, Inc.		Senior Secured	11.0%		2,476,420		2,284,875		2,284,875		1/1/2023
	Solugen, Inc.		Senior Secured	11.0%		1,238,440		1,213,420		1,213,420		1/1/2023
	Solugen, Inc. Subtotal					3,714,860		3,498,295		3,498,295
	Thrive Financial, Inc.**		Senior Secured	11.5%		990,014		930,252		930,252		10/1/2022
	Zeel Networks, Inc.		Senior Secured	11.0%		2,122,811		2,039,447		2,039,447		3/1/2022
Technology Services Total		11.9%				$	14,510,218	$	13,574,552	$	13,574,552

Wireless
	AirVine Scientific, Inc.		Senior Secured	12.0%		$	123,714	$	115,226	$	115,226	9/1/2022
	Parallel Wireless, Inc.		Senior Secured	11.8%		6,410,893		5,992,158		5,992,158		6/1/2023
Wireless Total		5.4%				$	6,534,607	$	6,107,384	$	6,107,384
Grand Total		178.6%				$	220,954,927	$	204,215,179	$	203,311,245

* As of December 31, 2019, loans with a cost basis of $5.7 million and a fair value of $5.0 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no income has been recognized.

**Indicates assets that the Fund deems “non-qualifying assets." As of December 31, 2019, 5.7% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an "eligible portfolio company," as defined in Section 2(a)(46)) represent at least 70% of its total assets. As part of this calculation, the numerator consists of the value of the Fund's investments in all eligible portfolio companies, and the denominator consists of total assets less those assets described in Section 55(a)(7) of the 1940 Act.

^ Entity is not domiciled in the United States and does not have its principal place of business in the United States.

(b) The interest rate is the designated annual interest rate exclusive of any original issue discount, fees or end of term payment.

As of December 31, 2019, all loans were made to non-affiliates.

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULES OF OPEN SWAP CONTRACTS (UNAUDITED)

AS OF MARCH 31, 2020 AND DECEMBER 31, 2019



Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Counterparty	Maturity Date	As of March 31, 2020
		Counterparty	Maturity Date	Notional Amount		Value			Upfront payments/receipts		Unrealized appreciation/(depreciation) (a)

Interest Rate Swap and Floor Agreements

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 2.520%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	$	35,000,000	$	(1,336,567	)	$	—	$	(1,336,567	)

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 1.899%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	22,000,000		(619,602		)	—		(619,602		)

Total				$	57,000,000	$	(1,956,169	)	$	—	$	(1,956,169	)



Description and terms of payments to be received from another party	Description and terms of payments to be paid to another party	Counterparty	Maturity Date	As of December 31, 2019
		Counterparty	Maturity Date	Notional Amount		Value			Upfront payments/receipts		Unrealized appreciation/(depreciation) (a)

Interest Rate Swap and Floor Agreements

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 2.520%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	$	35,000,000	$	(668,876	)	$	—	$	(668,876	)

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 1.899%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	22,000,000		(156,698		)	—		(156,698		)

Total				$	57,000,000	$	(825,574	)	$	—	$	(825,574	)

(a) The unrealized appreciation/depreciation were valued using prices or valuation based on observable inputs other than quoted price in active markets for identical assets and liabilities. See “Note 3. Fair Value Disclosures” for more information.

See notes to condensed financial statements.

VENTURE LENDING & LEASING IX, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


1.	ORGANIZATION AND OPERATIONS OF THE FUND

Venture Lending & Leasing IX, Inc. (the “Fund”) was incorporated in Maryland on June 28, 2017 as a non-diversified, closed-end management investment company electing status as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”) and is managed by Westech Investment Advisors, LLC (the “Manager” or “Management”). The Fund will be dissolved on December 31, 2028 unless the Board of Directors (the “Board”) opts to elect early dissolution. One hundred percent of the stock of the Fund is held by Venture Lending & Leasing IX, LLC (the “Company”). Prior to commencing operations on May 2, 2018, the Fund had no operations other than accruing organizational expenses and the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in June 2017. This issuance of stock was a requirement to apply for a finance lender’s license from the California Commissioner of Corporations, which was obtained on September 22, 2017.

The Fund’s investment objective is to achieve superior risk-adjusted investment returns and it seeks to achieve that objective by providing debt financing to portfolio companies, most of which are private. The Fund generally receives warrants to acquire equity securities in connection with its portfolio investments and generally distributes these warrants to its shareholder upon receipt, or soon thereafter. The Fund also has guidelines for the percentages of total assets that are invested in different types of assets.

The portfolio investments of the Fund primarily consist of debt financing to early and expansion stage venture capital-backed technology companies.

In the Manager’s opinion, the accompanying condensed interim financial statements (hereafter referred to as “financial statements”) include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of financial position and results of operations for interim periods. Certain information and note disclosures normally included in audited annual financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been omitted; however, the Fund believes that the disclosures made are adequate to make the information presented not misleading. The interim results for the three months ended March 31, 2020 are not necessarily indicative of what the results would be for a full year. These financial statements should be read in conjunction with the financial statements and the notes included in the Fund’s Annual Report on Form 10-K for the year ended December 31, 2019.


2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The preparation of financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As an investment company, the Fund follows accounting and reporting guidance as set forth in Topic 946 (“Financial Services - Investment Companies”) of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification, as amended (“ASC”). Certain prior period information has been reclassified and/or disclosed to conform to current year presentation.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and money market mutual funds with maturities of 90 days or less. Money market mutual funds held as cash equivalents are valued at their most recently traded net asset value. Within cash and cash equivalents, as of March 31, 2020, the Fund held 4,386,565 units in the Blackrock Treasury Trust Institutional Fund valued at $1 per unit at a yield of 0.2%, which represented 3.1% of the net assets of the Fund.

Interest Income

Interest income on loans is recognized on an accrual basis using the effective interest method including amounts resulting from the amortization of equity securities included as additional compensation as part of the loan agreements. Additionally, fees received as part of the transaction are added to the loan discount and amortized over the life of the loan.

Realized Gains and Losses from Loans

Realized gains on the sale of loans are computed using the difference between the amortized cost and the sales proceeds. Realized losses on loan write-offs are recognized when management determines a loan is uncollectible.

Investment Valuation

The Fund accounts for loans at fair value in accordance with the valuation methods below. All valuations are determined under the direction of the Manager, in accordance with the valuation methods.

As of March 31, 2020 and December 31, 2019, the financial statements included nonmarketable investments of $228.9 million and $203.3 million, respectively, (or 96.5% and 93.4% of total assets, respectively), with the fair values determined by the Manager in the absence of readily determinable market values. Because of the inherent uncertainty of these valuations, estimated fair values of such investments may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material. Below is the information used by the Manager in making these estimates.

Loans

The Fund defines fair value as the price that would be received to sell an asset or paid to lower a liability in an orderly transaction between market participants at the measurement date. Because there is no readily available market price and no secondary market for substantially all of the debt investments made by the Fund in its borrowing portfolio companies, Management determines fair value based on hypothetical markets, and on several factors related to each borrower, including, but not limited to, the borrower’s payment history, available cash and “burn rate,” revenues, net income or loss, the likelihood that the borrower will be able to secure additional financing in the future, and an evaluation of the general interest rate environment. The amount of any valuation adjustment considers the estimated amount and timing of cash payments of principal and interest from the borrower and/or liquidation analysis and is determined based upon a credit analysis of the borrower and an analysis of the expected recovery from the borrower, including consideration of factors such as the nature and quality of the Fund’s security interests in collateral, the estimated value of the Fund’s collateral, the size of the loan, and the estimated time that will elapse before the Fund achieves a recovery. Management has evaluated these factors and has concluded that, the effect of deterioration in the quality of the underlying collateral, increase in size of the loan, increase in the estimated time to recovery and increase in the hypothetical market coupon rate would have the effect of lowering the value of the current portfolio of loans.

Non-Accrual Loans

The Fund’s policy is to classify a loan as non-accrual when the portfolio company is delinquent for three consecutive months on its monthly loan payment, or, in the opinion of Management, either ceases or drastically curtails its operations and Management deems that it is unlikely that the loan will return to performing status. When a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed for the quarter in which the loan was placed on non-accrual status. Any uncollected interest related to quarters prior to when the loan was placed on non-accrual status is added to the principal balance, and the aggregate balance of the principal and interest is evaluated in accordance with the policy for valuation of loans in determining Management’s best estimate of fair value. Interest received by the Fund on non-accrual loans will be recognized as interest income if and when the proceeds exceed the book value of the respective loan.

If a borrower of a non-accrual loan resumes making regular payments and Management believes that such borrower has regained the ability to service the loan on a sustainable basis, the loan is reclassified back to accrual or performing status. Interest that would have been accrued during the time a loan was classified as non-accrual will be added back to the remaining payment schedule causing a change in the effective interest rate.

As of March 31, 2020 and December 31, 2019, loans with a cost basis of $9.5 million and $5.7 million and a fair value of $8.3 million and $5.0 million, respectively were classified as non-accrual.

Warrants and Equity Securities

Warrants and equity securities received in connection with loan transactions are measured at a fair value at the time of acquisition. Warrants are valued based on a modified Black-Scholes option pricing model which considers, among several factors, the underlying stock value, expected term, volatility, and risk-free interest rate. It is anticipated that such securities will be distributed by the Fund to the Company simultaneously with, or shortly following, their acquisition.

The underlying asset value is estimated based on information available, including information regarding recent rounds of funding of the portfolio company, or the publicly-quoted stock price at the end of the financial reporting period for warrants for comparable publicly-quoted securities.

Volatility, or the amount of uncertainty or risk about the size of the changes in the warrant price, is based on an index of publicly traded companies grouped by industry and which are similar in nature to the underlying portfolio companies issuing the warrant (“Industry Index”). The volatility assumption for each Industry Index is based on the average volatility for individual public companies within the portfolio company’s industry for a period of time approximating the expected life of the warrants. A hypothetical increase in the volatility of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

The remaining expected lives of warrants are based on historical experience of the average life of the warrants, as warrants are often exercised in the event of acquisitions, mergers, or initial public offerings and terminated due to events such as bankruptcies, restructuring activities, or additional financings. These events cause the expected term to be less than the remaining contractual term of the warrants. As of March 31, 2020 and December 31, 2019, the Fund assumed the average duration of a warrant is 4.0 years. The effect of a hypothetical increase in the estimated initial term of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants. However, the estimated initial term of the warrant is one factor, of many, used in the valuation of warrants, and by itself does not have a significant impact on the results of operations.

The risk-free interest rate is derived from the constant maturity tables issued by the U.S. Treasury Department. The effect of a hypothetical increase in the estimated risk-free rate used in the modified Black-Scholes option pricing model would have the effect of increasing the value of the warrants.

The Fund engages an independent valuation company to provide valuation assistance with respect to the warrants received as part of loan consideration, including an evaluation of the Fund’s valuation methodology and the reasonableness of the assumptions used from the perspective of a market participant. The independent valuation company also calculates several of the inputs used, such as volatility and risk-free rate.

Other Assets and Liabilities

Other assets include costs incurred in conjunction with borrowings under the Fund’s debt facility and are stated at initial cost. These costs are amortized over the term of the facility.

The fair values of other assets and accrued liabilities are estimated at their carrying values because of the short-term nature of these assets and liabilities.

The carrying value of the borrowings under the debt facility approximates their fair value based on the borrowing rates available to the Fund.

Commitment Fees

Unearned income and commitment fees on loans are recognized using the effective-interest method over the term of the loan. Commitment fees are carried as liabilities when received for commitments upon which no draws have been made. When the first draw is made, the fee is treated as unearned income and is recognized as described above. If a draw is never made, the forfeited commitment fee less any applicable legal costs becomes recognized as other income after the commitment expires.

Deferred Bank Fees

The deferred bank fees and costs associated with the debt facility are included in Other assets in the Condensed Statements of Assets and Liabilities and are being amortized over the estimated life of the facility, which currently matures on December 20, 2021. The amortization of these costs is recorded as Interest expense in the Condensed Statements of Operations.

Interest Rate Swap Agreements

The Fund has entered into interest rate swap and floor agreements to manage the Fund’s exposure to changes in interest rates on its expected borrowings under its debt facility, as the Fund originates fixed rate loans (see Note 8). The floor allows the Fund to match the swap with the terms of the variable rate index of the debt facility. The interest rate swap and floor are primarily valued on the basis of quotes obtained from banks, brokers and dealers and adjusted for counterparty risk and the optionality of the interest rate floor. The valuation of the swap and floor agreement also considers the future expected interest rates on the notional principal balance remaining which is comparable to what a prospective acquirer would pay on the measurement date. Valuation pricing models consider inputs such as forward rates, anticipated interest rate volatility relating to the reference rate, as well as time value and other factors underlying swap instruments. The Fund is a party to a master netting arrangement with MUFG Union Bank, N.A., however, the Fund has elected not to offset assets and liabilities under these arrangements for financial statement presentation purposes. The contract is recorded at gross fair value in either derivative asset - interest rate swap or derivative liability - interest rate swap in the Condensed Statements of Assets and Liabilities, depending on whether the value of the contract is in favor of the Fund or the counterparty. The changes in fair value are recorded in net change in unrealized gain (loss) from derivative instruments in the Condensed Statements of Operations and the quarterly interest received or paid on the contract, if any, is recorded in net realized gain (loss) from derivative instruments in the Condensed Statements of Operations. The interest rate swap and floor agreements are contractually scheduled to terminate on December 20, 2021.

3. FAIR VALUE DISCLOSURES

The Fund provides asset-based financing primarily to start-up and emerging growth venture-backed companies pursuant to commitments whereby the Fund agrees to finance assets and provide working or growth capital up to a specified amount for the term of the commitment, upon the terms and subject to the conditions specified by such commitment. Even though these loans are generally secured by the assets of the borrowers, the Fund in most cases is subject to the credit risk of such companies. As of March 31, 2020, the Fund’s investments in loans were primarily to companies based within the United States and were diversified among borrowers in the industry segments shown in the Condensed Schedules of Investments. All loans are senior to unsecured creditors and other secured creditors, unless as indicated in the Condensed Schedules of Investments.

The Fund defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale. Because there is no readily available market price and no secondary market for substantially all of the debt investments made by the Fund to borrowing portfolio companies, Management determines fair value (or estimated exit value) based on a hypothetical market, and several factors related to each borrower.

Loan balances in the Condensed Schedules of Investments are listed by borrower. Typically, a borrower’s balance will be composed of several loans drawn under a commitment made by the Fund with the interest rate on each loan fixed at the time each loan is funded. Each loan drawn under a commitment has a different maturity date and amount.

For the three months ended March 31, 2020, the weighted-average interest rate on the performing and all loans were 20.07% and 19.59%, respectively, which was inclusive of both cash and non-cash interest income. The weighted-average rate on both the performing and all loans were 17.70%, which was inclusive of both cash and non-cash interest income, for the three months ended March 31, 2019. For the three months ended March 31, 2020, the weighted-average interest rate on the cash portion of the interest income for the performing and all loans were 16.14% and 15.75%, respectively. The weighted-average interest rate on the cash portion of the interest income on both the performing and all loans for the three months ended March 31, 2019 was 12.69%.

Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including early payoffs, volatility of values ascribed to warrants and new loans funded during the period.

The risk profile of a loan changes when events occur that impact the credit analysis of the borrower and loan as discussed in the Fund’s loan accounting policy. Such changes result in the fair value adjustments made to the individual loans, which in accordance with U.S. GAAP, would be based on the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date. Where the risk profile is consistent with the original underwriting, which is primarily the case for this loan portfolio, the cost basis of the loan often approximates fair value.

All loans as of March 31, 2020 and December 31, 2019 were pledged as collateral for the debt facility, and the Fund’s borrowings are generally collateralized by all assets of the Fund. As of March 31, 2020 and December 31, 2019, the Fund had unexpired unfunded commitments to borrowers of $88.1 million and $78.0 million, respectively.

Valuation Hierarchy

Under the FASB ASC Topic 820 (“Fair Value Measurement”), the Fund categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Fund’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.

The three levels of the fair value hierarchy are defined as follows:



Level 1		Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2		Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3		Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Transfers of investments between levels of the fair value hierarchy are recorded on the actual date of the event or change in circumstances that caused the transfer. There were no transfers in and out of Level 1, 2, or 3 during the three months ended March 31, 2020 and 2019.

The Fund’s cash equivalents were valued at the traded net asset value of the money market fund. As a result, these measurements are classified as Level 1. The Fund’s interest rate swap is based on quotes from the market makers that derive fair values from market data, and therefore, is classified as Level 2. The Fund’s borrowings under the debt facility are also classified as Level 2, because the carrying values of the borrowings are based on rates that are observable at commonly quoted intervals, which are Level 2 inputs, and that approximate fair values. The Fund’s loan transactions are individually negotiated and unique, and because there is little to no market in which these assets trade, the inputs for these assets, which are valued using estimated exit values, are classified as Level 3.

The following tables provide quantitative information about the Fund’s Level 3 fair value measurements of the Fund’s investments by industry as of March 31, 2020 and December 31, 2019. In addition to the techniques and inputs noted in the tables below, the Fund may also use other valuation techniques and methodologies when determining its fair value measurements.



Investment Type - Level 3
Debt Investments	Fair Values at March 31, 2020		Valuation Techniques / Methodologies	Unobservable Inputs	Weighted Averages(a) / Amounts & Ranges

Biotechnology	$	3,512,041	Hypothetical market analysis	Hypothetical market coupon rate	15% (14% - 21%)

Computers & Storage	2,380,185		Hypothetical market analysis	Hypothetical market coupon rate	15%*

Internet	22,902,520		Hypothetical market analysis	Hypothetical market coupon rate	17% (14% - 31%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$5,008,877 ($884,531 - $6,178,476) 3% (2% - 3%)

Medical Devices	25,938,381		Hypothetical market analysis	Hypothetical market coupon rate	14% (13% - 17%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$10,329,930* 2%



Investment Type - Level 3
Debt Investments	Fair Values at March 31, 2020		Valuation Techniques / Methodologies	Unobservable Inputs	Weighted Averages(a) / Amounts & Ranges

Other Healthcare	12,045,551		Hypothetical market analysis	Hypothetical market coupon rate	16% (14% - 18%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$907,920* 2%

Other Technology	96,840,664		Hypothetical market analysis	Hypothetical market coupon rate	16% (13% - 35%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$5,009,254 ($240,143 - $6,281,055) 3% (2% - 3%)

Security	1,318,793		Hypothetical market analysis	Hypothetical market coupon rate	16% (14% - 21%)

Semiconductors & Equipment	1,007,149		Hypothetical market analysis	Hypothetical market coupon rate	16%*

Software	34,937,288		Hypothetical market analysis	Hypothetical market coupon rate	17% (13% - 26%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$2,054,812 ($145,000 - $2,624,248) 2% (2% - 3%)

Technology Services	15,422,207		Hypothetical market analysis	Hypothetical market coupon rate	15% (13% - 30%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$2,431,900* 2%

Wireless	12,571,082		Hypothetical market analysis	Hypothetical market coupon rate	14% (14% - 16%)

Total debt investments	$	228,875,861

^(a)The weighted-average hypothetical market coupon rates were calculated using the relative fair value of the loans.

* There is only one loan within the industry.



Investment Type - Level 3
Debt Investments	Fair Values at December 31, 2019		Valuation Techniques / Methodologies	Unobservable Inputs	Weighted Averages^(a)/Amount & Ranges

Biotechnology	$	3,490,422	Hypothetical market analysis	Hypothetical market coupon rate	15% (14% - 21%)

Computers & Storage	2,370,284		Hypothetical market analysis	Hypothetical market coupon rate	15%*



Investment Type - Level 3
Debt Investments	Fair Values at December 31, 2019		Valuation Techniques / Methodologies	Unobservable Inputs	Weighted Averages^(a)/Amount & Ranges
Enterprise Networking	112,500		Income Approach	Expected amount and timing of cash flow payment Discount Rate	$112,500* 0%

Internet	31,748,524		Hypothetical market analysis	Hypothetical market coupon rate	17% (14% - 31%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$999,905* 3%

Medical Devices	22,328,707		Hypothetical market analysis	Hypothetical market coupon rate	21% (14% - 38%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$10,529,931* 3%

Other Healthcare	10,465,833		Hypothetical market analysis	Hypothetical market coupon rate	16% (15% - 18%)

Other Technology	70,285,041		Hypothetical market analysis	Hypothetical market coupon rate	16% (13% - 35%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$2,394,959 ($1,561,170 - $2,844,003) 3%

Security	1,476,848		Hypothetical market analysis	Hypothetical market coupon rate	16% (14% - 21%)

Semiconductors & Equipment	1,137,034		Hypothetical market analysis	Hypothetical market coupon rate	16%*

Software	40,214,116		Hypothetical market analysis	Hypothetical market coupon rate	17% (13% - 26%)
			Income Approach	Expected amount and timing of cash flow payment Discount Rate	$2,715,143 ($517,921 - $2,866,672) 2%

Technology Services	13,574,552		Hypothetical market analysis	Hypothetical market coupon rate	15% (14% - 30%)

Wireless	6,107,384		Hypothetical market analysis	Hypothetical market coupon rate	15% (15% - 17%)

Total Debt Investments	$	203,311,245

^(a)The weighted-average hypothetical market coupon rates were calculated using the relative fair value of the loans.

* There is only one loan within the industry.

The following tables present the balances of assets and liabilities as of March 31, 2020 and December 31, 2019 measured at fair value on a recurring basis:



As of March 31, 2020
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	228,875,861	$	228,875,861
Cash equivalents	4,386,565		—		—		4,386,565
Total assets	$	4,386,565	$	—	$	228,875,861	$	233,262,426

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	91,500,000	$	—	$	91,500,000
Derivative liability - interest rate swap	—		1,956,169		—		1,956,169
Total liabilities	$	—	$	93,456,169	$	—	$	93,456,169



As of December 31, 2019
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	203,311,245	$	203,311,245
Cash equivalents	10,754,759		—		—		10,754,759
Total assets	$	10,754,759	$	—	$	203,311,245	$	214,066,004

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	100,000,000	$	—	$	100,000,000
Derivative liability - interest rate swap	—		825,574		—		825,574
Total liabilities	$	—	$	100,825,574	$	—	$	100,825,574

† For a detailed listing of borrowers comprising this amount, please refer to the Condensed Schedules of Investments.

The following tables provide a summary of changes in Level 3 assets measured at fair value on a recurring basis:



	For the Three Months Ended March 31, 2020						For the Three Months Ended March 31, 2019
	Loans			Warrants			Loans			Warrants

Beginning balance	$	203,311,245		$	—		$	79,045,107		$	—
Acquisitions and originations	59,383,334			4,220,856			25,387,500			2,133,805
Principal reductions and amortization of discounts	(27,387,006		)	—			(6,115,373		)	—
Distributions to shareholder	—			(4,220,856		)	—			(2,133,805		)
Net change in unrealized loss from loans	(6,431,712		)	—			(12,314		)	—
Ending balance	$	228,875,861		$	—		$	98,304,920		$	—
Net change in unrealized loss from loans relating to loans still held at period end	$	(6,431,712	)				$	(12,314	)


4.	EARNINGS PER SHARE

Basic earnings per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding. Diluted earnings (loss) per share are computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average common shares outstanding, including the dilutive effects of potential common shares (e.g. stock options). The Fund has no instruments that would be potential common shares; thus, reported basic and diluted earnings (loss) per share were the same.


5.	CAPITAL STOCK

As of both March 31, 2020 and December 31, 2019, there were 10,000,000 shares of $0.001 par value common stock authorized, and 100,000 shares issued and outstanding. Total committed capital of the Company, as of both March 31, 2020 and December 31, 2019, was $460.0 million. Total contributed capital to the Company as of March 31, 2020 and December 31, 2019 was $207.0 million and $174.8 million, respectively, of which $181.1 million and $148.1 million were contributed to the Fund, respectively.

The chart below shows the distributions of the Fund for the three months ended March 31, 2020 and 2019.



	For the Three Months Ended March 31, 2020		For the Three Months Ended March 31, 2019

Cash distributions	$	—	$	16,000,000
Distributions of equity securities and convertible notes	4,220,856		2,133,805
Total distributions to shareholder	$	4,220,856	$	18,133,805

Final classification of the distributions as either a return of capital or a distribution of income is an annual determination made at the end of each year dependent upon the Fund’s current year and cumulative earnings and profits.

6. DEBT FACILITY

The 1940 Act requires a BDC to meet certain levels of asset coverage with respect to its outstanding “senior securities,” which typically consist of outstanding borrowings under credit facilities and other debt instruments. Historically, BDCs have only been allowed to incur indebtedness by issuing senior securities if their asset coverage equals at least 200% after giving effect to such borrowings. The Small Business Credit Availability Act (the “SBCAA”), which was signed into law on March 23, 2018, added a new Section 61(a)(2) to the 1940 Act that permits BDCs like the Fund to increase the amount of indebtedness they may incur by lowering the asset coverage requirement from 200% to 150% if they make certain disclosures and obtain the approval by either (1) a “required majority,” as defined in Section 57(o) of the 1940 Act, of the BDC’s board of directors, including a majority of non-interested directors within the meaning of Section 2(a)(19) of the 1940 Act (‘Independent Directors”), with effectiveness one year after the date of such approval or (2) a majority of votes cast at a special or annual meeting of the BDC’s shareholders at which a quorum is present, which is effective the day after such stockholder approval.

On December 5, 2018, the required majority of the Fund’s Board, including a majority of its independent directors, unanimously determined it to be in the best interests of the Fund and its sole shareholder, the Company, to provide the Fund with maximum leverage flexibility, and approved the application to the Fund of a minimum asset coverage ratio of 150%, pursuant to Section 61(a)(2) of the 1940 Act, which would double the Fund’s borrowing limits, subject to approval by the Company via the pass-through voting of its members. Thereafter, at a special meeting of shareholders held on April 24, 2019, the Fund’s sole shareholder, the Company, approved the proposal to apply the reduced asset coverage requirement to the Fund. The 150% asset coverage ratio became effective for the Fund on

April 25, 2019. As of March 31, 2020 and December 31, 2019, the Fund’s asset coverage for borrowings was 255% and 213%, respectively.

On December 20, 2018, the Fund entered into a syndicated loan agreement led by MUFG Union Bank, N.A., Wells Fargo Securities, LLC and ING Capital LLC, with participation from Zions Bancorporation, N.A., doing business as California Bank & Trust, Bank Leumi USA, Umpqua Bank, HSBC Bank USA, N.A., and First Bank, that established a secured revolving loan facility in an initial amount of up to $200.0 million with the option to request that borrowing availability be increased up to $400.0 million (the “Loan Agreement”), subject to further negotiation and credit approval. All of the assets of the Fund collateralize borrowings by the Fund. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan, a LIBOR Loan or a LIBOR Market Index Rate Loan. As of March 31, 2020, the Fund’s outstanding borrowings were entirely based on the LIBOR rate. The facility terminates on December 20, 2021, but can be accelerated in the event of default, such as failure by the Fund to make timely interest or principal payments.

Borrowings under the facility are collateralized by receivables from loans to portfolio companies advanced by the Fund with assignment of such receivables to the financial institution, plus all of the other assets of the Fund. The Fund pays interest on its borrowings and a fee on the unused portion of the facility. Under the Loan Agreement, interest is charged to the Fund based on its borrowings at, pursuant to the election of the Fund, an annual rate equal to either (i) the Reference Rate plus 1.50%, (ii) LIBOR plus 2.50% or (iii) the LIBOR Market Index Rate plus 2.50%. When the Fund is using 50% or more of the maximum amount available under the Loan Agreement, the applicable commitment fee is 0.25% of the unused portion of the loan facility; otherwise, the applicable commitment fee is 0.50% of the unused portion. The Fund pays the unused credit line fee quarterly. As of March 31, 2020 and December 31, 2019, $91.5 million and $100 million, respectively, was outstanding under the facility.

As of March 31, 2020, the LIBOR rate was as follows:



1-Month LIBOR	0.9929%
3-Month LIBOR	1.4505%

Bank fees and other costs of $1.3 million incurred in connection with the acquisition of the facility have been capitalized and are amortized to interest expense on a straight-line basis over the expected life of the facility. As of March 31, 2020 and December 31, 2019, the remaining unamortized fees and costs of $0.8 million and $0.9 million, respectively, are being amortized over the expected life of the facility, which is expected to terminate on December 20, 2021.

The facility is revolving and as such does not have a specified repayment schedule, although advances are secured by the assets of the Fund and thus repayments will be required as assets decline. The facility contains various covenants including financial covenants related to: (i) minimum debt service coverage ratio, (ii) interest coverage ratio, (iii) unfunded commitment ratio, (iv) maximum quarterly loan loss reserve ratio, (v) maximum annual loan loss reserve ratio and (vi) maximum loan loss test. There are also various restrictive covenants, including limitations on: (i) the incurrence of liens, (ii) consolidations, mergers and asset sales and (iii) capital expenditures. As of March 31, 2020, Management is not aware of instances of non-compliance with financial covenants.

The following is the summary of the outstanding facility draws as of March 31, 2020:



	Amount		Maturity Date*	All-In Interest Rate^(a)
LIBOR Loan	$	31,000,000	April 20, 2020*	3.25%
LIBOR Market Index Rate Loan	60,500,000		December 20, 2021	Variable based on 1-Month LIBOR rate
Total Outstanding	$	91,500,000

*Following the maturity date, Management elected to renew the LIBOR Loan with no material changes in loan terms.

^(a)Inclusive of 2.50% applicable LIBOR margin plus LIBOR rate.

The following is the summary of the outstanding facility draws as of December 31, 2019:



	Amount		Maturity Date*	All-In Interest Rate^(a)
LIBOR Loan	$	31,000,000	January 22, 2020*	4.28%
LIBOR Market Index Rate Loan	69,000,000		December 20, 2021	Variable based on 1-Month LIBOR rate
Total Outstanding	$	100,000,000

*Following the maturity date, Management elected to renew the LIBOR Loan with no material changes in loan terms.

^(a)Inclusive of 2.50% applicable LIBOR margin plus LIBOR rate.


7.	MANAGEMENT FEE

As compensation for its services to the Fund, from the date of the first capital call, May 1, 2018, to March 31, 2019, the Manager received a management fee (“Management Fee”) computed and paid at the end of the quarter at an annual rate of 1.575% of the Company’s committed equity capital (regardless of when or if the capital was called). The Management Fee percentage is 1.600% as of March 31, 2020, based on the following schedule of annual percentages:



		Management Fee
Year 1		1.575%
Year 2		1.600%
Year 3		1.575%
Year 4		1.500%
Year 5		1.250%
Year 6		0.900%
Year 7		0.600%
Year 8		0.350%
Year 9		0.150%

Management Fees of $1.8 million were recognized as expenses for both the three months ended March 31, 2020 and 2019.


8.	INTEREST RATE SWAP AGREEMENT

On February 7, 2019, the Fund entered into an interest rate swap and floor agreement with MUFG Union Bank, N.A. The Fund entered into an interest rate swap agreement to manage the Fund’s exposure to changes in interest rates on its expected borrowings under its debt facility, as the Fund originates fixed rate loans. The floor allows the Fund to match the swap with the terms of the variable rate index of the debt facility. The Fund may enter into additional hedging transactions to remain in compliance with the hedging requirements to the debt facility. As of March 31, 2020, the total notional principal amount was $57.0 million.

The following table presents the Fund’s fair value and its location in the Fund’s condensed statement of assets and liabilities:

The Fund pays a weighted average rate of 2.28% and receives from the counterparty a floating rate based upon a 1-Month LIBOR rate. Payments are made monthly. The payments and interest rate swap agreement will terminate on December 20, 2021. Payments to or from the counterparty are recorded to Net realized gain (loss) from derivative instruments. As of March 31, 2020, the 1-Month LIBOR rate was 0.9929%.

For the three months ended March 31, 2020 and 2019, the interest rate swap and floor had the following effect on the Fund’s Condensed Statements of Operations:



Derivatives:	Location on Condensed Statements of Operations	For the Three Months Ended March 31, 2020			For the Period Ended March 31, 2019
Interest rate swap agreement	Net change in unrealized loss from derivative instruments	$	(1,130,595	)	$	(303,362	)
Interest rate swap agreement	Net realized loss from derivative instruments	$	(86,059	)	$	(919	)

9. TAX STATUS

The Fund has elected to be treated as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code (the "Code") and operates in a manner to qualify for the tax treatment applicable to RICs. Failing to maintain at least 70% of total assets in "qualifying assets" will result in the loss of BDC status, resulting in losing its favorable tax treatment as a RIC. As of March 31, 2020, the Fund has met the BDC and RIC requirements.

In order to qualify for favorable tax treatment as a RIC, the Fund is required to distribute annually to its shareholder at least 90% of its investment company taxable income, as defined by the Code. To avoid federal excise taxes, the Fund must distribute annually at least 98% of its ordinary income and 98.2% of net capital gains from the current year and any undistributed ordinary income and net capital gains from the preceding years. The Fund, at its discretion, may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If the Fund chooses to do so, all other things being equal, this would increase expenses and reduce the amount available to be distributed to its shareholder. The Fund will accrue excise tax on estimated undistributed taxable income as required.

Below are tables summarizing the cost of investments for federal income tax purposes and the appreciation and depreciation of the investments reported on the Condensed Schedules of Investments and Condensed Statements of Assets and Liabilities as of March 31, 2020 and December 31, 2019:



Asset	As of March 31, 2020
Asset	Cost		Unrealized Appreciation		Unrealized Depreciation			Net Appreciation (Depreciation)
Loans	$	236,211,507	$	—	$	(7,335,646	)	$	(7,335,646	)
Total	$	236,211,507	$	—	$	(7,335,646	)	$	(7,335,646	)



	As of March 31, 2020
Derivative, Liability	Cost		Unrealized Appreciation		Unrealized Depreciation			Net Appreciation (Depreciation)
Derivative liability - interest rate swap	$	—	$	—	$	(1,956,169	)	$	(1,956,169	)
Total	$	—	$	—	$	(1,956,169	)	$	(1,956,169	)



Asset	As of December 31, 2019
Asset	Cost		Unrealized Appreciation		Unrealized Depreciation			Net Appreciation (Depreciation)
Loans	$	204,215,179	$	—	$	(903,934	)	$	(903,934	)
Total	$	204,215,179	$	—	$	(903,934	)	$	(903,934	)

	As of December 31, 2019
Derivative, Liability	Cost		Unrealized Appreciation		Unrealized Depreciation			Net Appreciation (Depreciation)
Derivative liability - interest rate swap	$	—	$	—	$	(825,574	)	$	(825,574	)
Total	$	—	$	—	$	(825,574	)	$	(825,574	)

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined in accordance with U.S. GAAP. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Temporary and permanent differences are primarily attributable to differences in the tax treatment of certain loans and the tax characterization of income and non-deductible expenses. These differences are generally determined in conjunction with the preparation of the Fund’s annual RIC tax return.

Book and tax basis differences relating to shareholder dividends and distributions and other permanent book and tax differences are reclassified among the Fund’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP. The determination of the tax attributes of the Fund’s distributions is made annually as of the end of the Fund’s taxable year and is generally based upon its taxable income for the full taxable year and distributions paid for the full taxable year. As a result, a determination made on a quarterly basis may not be representative of the actual tax attributes of the Fund’s distributions for a full taxable year. As of March 31, 2020, the Fund had determined the tax attributes of its distributions taxable year-to-date to be from its current and accumulated earnings and profits. There is not yet, however, certainty as to what the actual tax attributes of the Fund’s distributions to the shareholders will be by the year-ended December 31, 2020.

The Fund anticipates distributing all distributable earnings by the end of the year. For the three months ended March 31, 2020, the Fund had $3.4 million in undistributed earnings. The Fund may pay distributions in excess of its taxable net investment income. This excess would be a tax-free return of capital in the period and reduce the shareholder’s tax basis in its shares.

The Fund’s tax returns remain open for examination by the federal government for a period of three years and California tax authorities for a period of four years from when they are filed. As of March 31, 2020, the Fund had no uncertain tax positions and no capital loss carryforwards.

10. UNEXPIRED UNFUNDED COMMITMENTS

As of March 31, 2020 and December 31, 2019, the Fund’s unexpired unfunded commitments to borrowers totaled $88.1 million and $78.0 million, respectively. Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid. It is the Manager’s experience that not all unexpired unfunded commitments will be used by the borrowers. Many credit agreements contain provisions which are milestone dependent and not all borrowers will achieve these milestones. Additionally, the Fund’s credit agreements contain provisions that give relief from funding obligations in the event the borrower has a material adverse change to its financial condition. Therefore, the unexpired unfunded commitments do not necessarily reflect future cash requirements or future investments for the Fund.

The tables below are the Fund’s unexpired unfunded commitments as of March 31, 2020 and December 31, 2019:



Borrower	Industry	Unexpired Unfunded Commitment as of March 31, 2020		Expiration Date
Aclima, Inc.	Other Technology	$	4,000,000	07/31/2020
ArborMetrix, Inc.	Software	750,000		04/30/2020
ATeam Army, Inc.	Other Technology	500,000		07/30/2020
Benson Hill Bio, Inc.	Other Technology	7,500,000		12/01/2020
BW Industries, Inc.	Other Technology	2,000,000		07/31/2020
Callisto Media, Inc.	Technology Services	7,500,000		12/31/2020
Canary Technologies Corporation	Software	250,000		09/30/2020
Cloudleaf, Inc.	Software	1,500,000		10/15/2020
CytoVale, Inc.	Medical Devices	500,000		05/31/2020
Driver Bioengineering, Inc.	Biotechnology	1,250,000		06/30/2020
Exo Imaging, Inc.	Medical Devices	4,000,000		11/30/2020
Fetch Robotics, Inc.	Computers & Storage	10,000,000		06/30/2021
GoForward, Inc.	Other Healthcare	6,250,000		07/01/2020
Grin, Inc.	Other Healthcare	500,000		10/31/2020
Hello Heart, Inc.	Other Healthcare	750,000		08/31/2020
Invoice2Go, Inc.	Software	14,000,000		03/31/2021
Jiko Group, Inc.	Other Technology	3,500,000		06/30/2020
Lucideus, Inc.	Software	500,000		07/15/2020
Lukla, Inc.	Internet	750,000		01/31/2021
Marley Spoon, Inc.	Internet	3,750,000		07/31/2020
Medable, Inc.	Software	2,000,000		07/31/2020
OneLocal, Inc.	Internet	666,667		07/31/2020
Percepto Inc.	Other Technology	500,000		05/31/2020
Pitzi, Ltd.	Other Technology	2,500,000		11/30/2020
Quartzy, Inc.	Biotechnology	2,250,000		10/15/2020
Reciprocity, Inc.	Software	1,950,000		01/31/2021
RenoFi, Inc.	Internet	250,000		09/30/2020
Residently USA, LLC	Internet	750,000		07/30/2020
Stay Alfred, Inc.	Internet	7,500,000		06/30/2020
Total		$	88,116,667



Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2019		Expiration Date
Ablacon, Inc.	Medical Devices	$	2,500,000	01/31/2020
Ainsly, Inc.	Internet	1,500,000		01/31/2020
Airvine Scientific, Inc.	Wireless	125,000		03/31/2020
Apollo Flight Research Inc.	Other Technology	250,000		01/31/2020
ArborMetrix, Inc.	Software	750,000		04/30/2020
Beanfields, PBC	Other Technology	625,000		06/30/2020
BW Industries, Inc.	Other Technology	2,000,000		07/31/2020
Callisto Media, Inc.	Technology Services	10,000,000		12/31/2020
Canary Technologies Corp.	Software	250,000		09/30/2020
Cesium, Inc.	Internet	375,000		03/31/2020
Cloudleaf, Inc.	Software	1,500,000		10/15/2020
DOSH Holdings, Inc.	Other Technology	3,750,000		01/15/2020
eXo Imaging, Inc.	Medical Devices	6,000,000		11/30/2020
GoForward, Inc.	Other Healthcare	6,250,000		07/01/2020
Hello Heart Inc.	Other Healthcare	1,750,000		08/31/2020
HumanAPI, Inc.	Other Healthcare	500,000		01/31/2020
Kids on 45th, Inc.	Internet	500,000		01/31/2020
Klar Holdings Limited	Technology Services	250,000		03/31/2020
Liftit, Inc.	Technology Services	500,000		01/30/2020
Lucideus, Inc.	Software	500,000		07/15/2020
Lukla, Inc.	Internet	750,000		01/31/2021
Marley Spoon, Inc.	Internet	3,750,000		07/31/2020
Medable, Inc.	Software	2,000,000		07/31/2020
Merchbar, Inc.	Internet	250,000		01/30/2020
Noteleaf, Inc.	Other Technology	1,000,000		01/31/2020
OneLocal, Inc.	Internet	1,000,000		07/31/2020
Owl Cameras, Inc.	Software	3,000,000		01/01/2020
Parallel Wireless, Inc.	Wireless	6,500,000		03/31/2020
Percepto Inc.	Other Technology	1,000,000		05/31/2020
Pitzi, Ltd.	Other Technology	2,500,000		11/30/2020
Quartzy, Inc.	Biotechnology	2,250,000		10/15/2020
Solugen, Inc.	Technology Services	1,250,000		01/31/2020
Stay Alfred, Inc.	Internet	7,500,000		06/30/2020
Stitch Labs, Inc.	Software	750,000		01/31/2020
The Safe and Fair Food Company LLC	Other Technology	1,250,000		01/31/2020
Trendalytics Innovation Labs, Inc.	Software	450,000		01/31/2020
Visual Supply Company	Internet	2,500,000		03/31/2020
Voodoo Manufacturing, Inc.	Other Technology	375,000		02/28/2020
Total		$	77,950,000

11. FINANCIAL HIGHLIGHTS

U.S. GAAP requires disclosure of financial highlights of the Fund for the three months ended March 31, 2020 and 2019.

The total rate of return is defined as the return based on the change in value during the period of a theoretical investment made at the beginning of the period. The total rate of return assumes a constant rate of return for the Fund during the period reported and weights each cash flow by the amount of time held in the Fund. This required methodology differs from an internal rate of return.

The ratios of expenses and net investment income to average net assets, calculated below, are annualized and are computed based upon the aggregate weighted average net assets of the Fund for the periods presented. Net investment income is inclusive of all investment income net of expenses and excludes realized or unrealized gains and losses.

Beginning and ending net asset values per share are based on the beginning and ending number of shares outstanding. Other per share information is calculated based upon the aggregate weighted average net assets of the Fund for the periods presented.

The following per share data and ratios have been derived from the information provided in the financial statements:



	For the Three Months Ended March 31, 2020			For the Three Months Ended March 31, 2019

Total return**	0.03		%	1.46		%

Per share amounts:
Net asset value, beginning of period	$	1,138.32		$	740.89
Net investment income	76.81			12.78
Net realized and change in unrealized loss from loans and derivative instruments	(76.48		)	(3.17		)
Net increase in net assets resulting from operations	0.33			9.61
Distributions to shareholder	(42.21		)	(181.33		)
Contributions from shareholder	330.00			100.00

Net asset value, end of period	$	1,426.44		$	669.17
Net assets, end of period	$	142,643,705		$	66,916,800

Ratios to average net assets:
Expenses*	10.89		%	16.33		%
Net investment income*	26.41		%	7.63		%
Portfolio turn-over rate	—		%	—		%
Average debt outstanding	$	100,875,000		$	30,500,000

*Annualized
**Total return amounts presented above are not annualized.

12. SUBSEQUENT EVENTS

The Fund evaluated subsequent events through the date the financial statements were issued and determined that no additional subsequent events had occurred that would require accrual or disclosure in the financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

In addition to the historical information contained herein, the information in this Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of the securities laws. These forward-looking statements reflect the current view of the Fund with respect to future events and financial performance and are subject to several risks and uncertainties, many of which are beyond the Fund’s control. All statements, other than statements of historical facts included in this Quarterly Report, regarding the strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of the Fund are forward-looking statements. When used in this report, the words “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements speak only as of the date of this report. The Fund does not undertake any obligation to update or revise publicly any forward-looking statements, whether resulting from new information, future events or otherwise, except as required by law.

The reader of this Quarterly Report should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Fund’s actual results could differ materially from those suggested by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, loan losses, expenses, rates charged on loans and earned on securities investments, competition and macro-economic changes including inflation, interest rate expectations, among other factors including those set forth in the section of this Quarterly Report titled “Risk Factors” and Item 1A - “Risk Factors” in the Fund’s 2019 Annual Report on Form 10-K. This entire Quarterly Report should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Fund’s business.

Overview

The Fund is 100% owned by the Company. The Fund’s shares of common stock, at $0.001 par value, were sold to its sole shareholder, the Company, under a stock purchase agreement. The Fund has issued 100,000 of the Fund’s 10,000,000 authorized shares. The Company may make additional capital contributions to the Fund.

The Fund provides financing and advisory services to a variety of carefully selected venture-backed companies that have received equity funding from traditional sources of venture capital equity funding (i.e. a professionally managed venture capital firm), as well as non-traditional sources of venture capital equity funding (e.g. angel investors, strategic investors, family offices, crowdfunding investment platforms, etc.) (collectively, “Venture-Backed Companies”), primarily throughout the United States with a focus on growth-oriented companies. The Fund’s portfolio consists of companies in the communications, information services, media, technology (including software and technology-enabled business services), biotechnology, and medical devices industry sectors, among others. The Fund’s capital is generally used by its portfolio companies to finance acquisitions of fixed assets and working capital. On May 1, 2018, the Company called and received its first capital from investors. On May 2, 2018, the Fund made its first investment and became a non-diversified, closed-end investment company under the 1940 Act. While the Fund intends to operate as a non-diversified investment company within the meaning of Section 5(b)(2) of the 1940 Act, from time to time, the Fund may act as a diversified investment company within the meaning of Section 5(b)(1) of the 1940 Act.

The Fund elected to be treated as a RIC under the Code for federal income tax purposes. Pursuant to this election, the Fund generally will not have to pay corporate-level taxes on any income distributed to its shareholder as dividends, allowing the Company to substantially reduce or eliminate its corporate-level tax liability.

The Fund will seek to meet the ongoing requirements, including the diversification requirements, to qualify as a RIC under the Code. If the Fund fails to meet these requirements, it will be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to the members of the Company as ordinary income); thus, such income will be subject to a double layer of tax. There is no assurance that the Fund will meet the ongoing requirements to qualify as a RIC for tax purposes.

The portfolio investments of the Fund primarily consist of debt financing to Venture-Backed Companies in the technology sector. The borrower’s ability to repay its loans may be adversely impacted by several factors, and as a result, the loan may not be fully repaid. Furthermore, the Fund’s security interest in any collateral over the borrower’s assets may be insufficient to make up any shortfall in payments.

Transactions with Venture Lending & Leasing VIII, Inc. (“Fund VIII”)

The Manager also serves as manager for Fund VIII. The Fund’s Board of Directors determined that so long as Fund VIII has capital available to invest in loan transactions with final maturities earlier than December 31, 2025 (the date on which Fund VIII will be dissolved), the Fund may invest in each portfolio company in which Fund VIII invests (“Investments”). Generally, the amount of each Investment will be allocated 50% to the Fund and 50% to Fund VIII, or such other allocations as may be determined by the respective fund boards, so long as the Fund has capital available to invest. The ability of the Fund to co-invest with Fund VIII, and other clients advised by the Manager, is subject to the conditions (“Conditions”) with which the Funds are currently complying while seeking certain exemptive relief from the Securities and Exchange Commission (“SEC”) from the provisions of Sections 17(d) and 57 of the 1940 Act and Rule 17d-1 thereunder. After June 30, 2022, the Fund will no longer be permitted to enter into new commitments to borrowers; however, the Fund will be permitted to fund existing commitments, in which Fund VIII may also be invested. The Manager has exercised, and the Board of Directors ratified, its discretion to extend Fund VIII’s investment period for two additional quarters after September 30, 2020, thereby allowing Fund VIII to make new commitments through March 31, 2020 and to fund commitments through March 31, 2021, the end of Fund VIII’s investment period. The Manager is permitted to extend the Fund’s investment period by up to two (2) additional calendar quarters in its sole and absolute discretion. To the extent that clients, other than Fund VIII, advised by the Manager (but in which the Manager has no proprietary interest) invest in opportunities available to the Fund, the Manager will allocate such opportunities among the Fund and such other clients in a manner deemed fair and equitable considering all of the circumstances in accordance with the Conditions.

Critical Accounting Policies, Practices and Estimates

Critical Accounting Policies and Practices are those accounting policies and practices that are both the most important to the portrayal of the Fund’s net assets and results of operations and require the most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Critical accounting estimates are accounting estimates where the nature of the estimates is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and the impact of the estimates on net assets or operating performance is material.

In evaluating the most critical accounting policies and estimates, the Manager has identified the estimation of fair value of the Fund’s loan investments as the most critical of the accounting policies and accounting estimates applied to the Fund’s reporting of net assets or operating performance. In accordance with U.S. GAAP, the Fund defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability was exchanged in an orderly transaction; it was not a forced liquidation or distressed sale. There is no readily available market price or secondary market for the loans made by the Fund to borrowers, hence the Manager determines fair value based on a hypothetical market and the estimates are subject to high levels of judgment and uncertainty. The Fund’s loan investments are considered Level 3 fair value measurements in the fair value hierarchy due to the lack of observability over many of the important inputs used in determining fair value.

Critical judgments and inputs in determining the fair value of a loan include the estimated timing and amount

of future cash flows and probability of future payments, based on the assessment of payment history, available cash and “burn rate,” revenues, net income or loss, operating results, financial strength of borrower, prospects for the borrower’s raising future equity rounds, likelihood of sale or acquisition of the borrower, length of expected holding period of the loan, collateral position, the timing and amount of liquidation of collateral for loans that are experiencing significant credit deterioration and, as a result, collection becomes collateral-dependent, as well as an evaluation of the general interest rate environment. Management has evaluated these factors and has concluded that the effect of a deterioration in the quality of the underlying collateral, increase in the size of the loan, increase in the estimated time to recovery, and increase in the hypothetical market coupon rate would have the effect of decreasing the fair value of loan investments. The risk profile of a loan changes when events occur that impact the credit analysis of the borrower and the loan. Such changes result in the fair value being adjusted from par value of the individual loan. Where the risk profile is consistent with the original underwriting, the par value of the loan often approximates fair value.

The actual value of the loans may differ from Management’s estimates, which would affect net change in net assets resulting from operations as well as assets.

Recent Development

Due to the recent outbreak of the novel strain of coronavirus (COVID-19), the Fund may be directly and indirectly affected by the increased financial market volatility and disruption of the global economy. Among other things, the aforementioned events could impair the ability of borrowers to make scheduled payments, result in loss of revenue, or cause the Fund to incur additional expenses. The increased financial market volatility factored into the Fund’s loan valuation adjustment and resulted in net increase in unrealized loss from loans as of March 31, 2020. Given the uncertainty of the COVID-19 situation, the extent of the long-term economic impact on the Fund’s business operations, result of operations, and access to liquidity and capital resources is unpredictable at this time.

The Fund is maintaining close communications with its debt portfolio companies to proactively assess and manage potential risks. Management has increased oversight analysis of credits across the Fund's debt investment portfolio in an attempt to manage the potential credit risk and improve loan performance. Management is also monitoring the Fund's continued access to capital resources through periodic communications with the bank syndicate and the Company’s members. As of March 31, 2020, there are no indications that the bank syndicate will fail to renew the Fund’s debt facility or that any of the Company’s members will be unable to meet their capital obligations to the Company.

In addition, the Fund is taking proactive steps to ensure and maintain an appropriate liquidity position based on the current circumstances.

Results of Operations - For the Three Months Ended March 31, 2020 and 2019

Total investment income for the three months ended March 31, 2020 and 2019 was $10.8 million and $4.0 million, respectively, which primarily consisted of interest on the venture loans outstanding. The remaining income consisted of interest and dividends on the temporary investment of cash. The average outstanding balance of the performing loans calculated using the month-end balances was $206.2 million and $89.6 million for the three months ended March 31, 2020 and 2019, respectively. The average outstanding balance of all loans calculated using the month-end balances was $211.3 million and $89.6 million for the three months ended March 31, 2020 and 2019. The weighted-average interest rate on the performing loans for the same periods was 20.07% and 17.70%, respectively. The weighted-average interest rate on all loans for the same period was 19.59% and 17.70%, respectively. Both the increase in the average outstanding balance and interest rate contributed to the increase in investment income. Interest is calculated using the effective interest method, and rates earned by the Fund will fluctuate based on many factors including early payoffs, volatility of values ascribed to warrants and new loans funded during the year.

Management fees for both the three months ended March 31, 2020 and 2019 was $1.8 million. For the same period, management fees were calculated at an annual rate of 1.600% and 1.575% of the Company's committed equity capital, respectively.

Interest expense was $1.2 million and $0.7 million for the three months ended March 31, 2020 and 2019, respectively. Interest expense was comprised of amounts related to interest on debt amounts drawn down, unused credit line fees and amounts amortized from deferred fees incurred in conjunction with the debt facility. The increase in interest expense is primarily due to higher debt outstanding balance. The average debt outstanding for the three months ended March 31, 2020 and 2019 was $100.9 million and $30.5 million, respectively.

Banking and professional fees were less than $0.1 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively. Banking and professional fees were primarily comprised of legal fees associated with the documentation of loans and audit fees.

Other operating expenses were both less than $0.1 million for the three months ended March 31, 2020 and 2019. These expenses included director fees, custody fees, tax fees and other expenses related to the operations of the Fund.

Net investment income for the three months ended March 31, 2020 and 2019 was $7.7 million and $1.3 million, respectively.

Net realized loss from derivative instruments was less than $0.1 million for both the three months ended March 31, 2020 and 2019. The reason for the loss was due to interest paid by the Fund on the interest rate swap and floor agreement when the fixed rate interest of the swap and floor was higher than the floating rate.

Net change in unrealized loss from loans was $6.4 million and less than $0.1 million for the three months ended March 31, 2020 and 2019, respectively. The net change in unrealized gain from loans consisted of fair value adjustments taken against loans resulting from the improvement or deterioration in certain portfolio companies’ performance.

Net change in unrealized loss from derivative instruments was $1.1 million and $0.3 million for the three months ended March 31, 2020 and 2019, respectively. The net change in unrealized loss from derivative instruments consisted of fair market value adjustments to the derivative interest rate swap and is a reflection of the market’s outlook on the economy and the future of interest rate changes.

Net increase in net assets resulting from operations for the three months ended March 31, 2020 and 2019 was less than $0.1 million and $1.0 million, respectively. On a per share basis, the net increase in net assets resulting from operations for the three months ended March 31, 2020 and 2019 was $0.32 and $9.62, respectively.

Liquidity and Capital Resources – March 31, 2020 and December 31, 2019

The Fund is owned entirely by the Company. The Company is expected, but not required, to make further contributions to the capital of the Fund to the extent of the Company’s members’ capital commitment to the Company and excess cash balances of the Company. Total capital contributed to the Fund was $181.1 million and $148.1 million as of March 31, 2020 and December 31, 2019, respectively. As of both March 31, 2020 and December 31, 2019, the Company had subscriptions for capital in the amount of $460.0 million, of which $207.0 million and $174.8 million had been called and received, as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020, $253.0 million of capital remains uncalled and the uncalled capital expires on the Fund’s fifth anniversary of its first investment unless extended. Management is permitted to extend the Fund’s investment period by up to two (2) additional calendar quarters in its sole and absolute discretion. The Company has made $20.9 million in recallable distributions to its investors, as permitted under its operating agreement between the Company’s managing member and members of the Company.

The change in cash for the three months ended March 31, 2020 and 2019 was as follows:



	For the Three Months Ended March 31, 2020			For the Three Months Ended March 31, 2019
Net cash used in operating activities	$	(30,782,135	)	$	(20,074,077	)
Net cash provided by financing activities	24,413,941			21,999,081
Net increase (decrease) in cash and cash equivalents	$	(6,368,194	)	$	1,925,004

As of March 31, 2020 and December 31, 2019, 3.1% and 9.4%, respectively, of the Fund’s net assets consisted of cash and cash equivalents.

On December 20, 2018, the Fund entered into a syndicated loan agreement led by MUFG Union Bank, N.A., Wells Fargo Securities, LLC and ING Capital LLC, with participation from Zions Bancorporation, N.A., doing business as California Bank & Trust, Bank Leumi USA, Umpqua Bank, HSBC Bank USA, N.A., and First Bank, that established a secured revolving loan facility in an initial amount of up to $200.0 million with the option to request that borrowing availability be increased up to $400.0 million, subject to further negotiation and credit approval. Borrowings by the Fund are collateralized by all the assets of the Fund. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan, a LIBOR Loan or a LIBOR Market Index Rate Loan. The Fund pays interest on its borrowings and also pays a fee on the unused portion of the facility. The facility terminates on December 20, 2021, but can be accelerated in the event of default, such as the failure by the Fund to make timely interest or principal payments. As of March 31, 2020, $91.5 million was outstanding under the facility.

For the three months ended March 31, 2020 and since the start of its investment operation in May 2018, the Fund invested its assets in venture loans. Amounts disbursed under the Fund’s loan commitments were $59.4 million for the three months ended March 31, 2020. Net loan amounts outstanding after amortization and valuation adjustments increased by $25.6 million for the same period. Unexpired unfunded commitments totaled $88.1 million as of March 31, 2020.



As of	Cumulative Amount Disbursed	Principal Reductions and Fair Market Adjustments	Balance Outstanding - Fair Value	Unexpired Unfunded Commitments
March 31, 2020	$307.2 million	$78.3 million	$228.9 million	$88.1 million
December 31, 2019	$247.8 million	$44.5 million	$203.3 million	$78.0 million

The following tables show the unexpired unfunded commitments by portfolio company as of March 31, 2020 and December 31, 2019.



Borrower	Industry	Unexpired Unfunded Commitment as of March 31, 2020		Expiration Date
Aclima, Inc.	Other Technology	$	4,000,000	07/31/2020
ArborMetrix, Inc.	Software	750,000		04/30/2020
ATeam Army, Inc.	Other Technology	500,000		07/30/2020
Benson Hill Bio, Inc.	Other Technology	7,500,000		12/01/2020
BW Industries, Inc.	Other Technology	2,000,000		07/31/2020
Callisto Media, Inc.	Technology Services	7,500,000		12/31/2020
Canary Technologies Corporation	Software	250,000		09/30/2020
Cloudleaf, Inc.	Software	1,500,000		10/15/2020
CytoVale, Inc.	Medical Devices	500,000		05/31/2020



Borrower	Industry	Unexpired Unfunded Commitment as of March 31, 2020		Expiration Date
Driver Bioengineering, Inc.	Biotechnology	1,250,000		06/30/2020
Exo Imaging, Inc.	Medical Devices	4,000,000		11/30/2020
Fetch Robotics, Inc.	Computers & Storage	10,000,000		06/30/2021
GoForward, Inc.	Other Healthcare	6,250,000		07/01/2020
Grin, Inc.	Other Healthcare	500,000		10/31/2020
Hello Heart, Inc.	Other Healthcare	750,000		08/31/2020
Invoice2Go, Inc.	Software	14,000,000		03/31/2021
Jiko Group, Inc.	Other Technology	3,500,000		06/30/2020
Lucideus, Inc.	Software	500,000		07/15/2020
Lukla, Inc.	Internet	750,000		01/31/2021
Marley Spoon, Inc.	Internet	3,750,000		07/31/2020
Medable, Inc.	Software	2,000,000		07/31/2020
OneLocal, Inc.	Internet	666,667		07/31/2020
Percepto Inc.	Other Technology	500,000		05/31/2020
Pitzi, Ltd.	Other Technology	2,500,000		11/30/2020
Quartzy, Inc.	Biotechnology	2,250,000		10/15/2020
Reciprocity, Inc.	Software	1,950,000		01/31/2021
RenoFi, Inc.	Internet	250,000		09/30/2020
Residently USA, LLC	Internet	750,000		07/30/2020
Stay Alfred, Inc.	Internet	7,500,000		06/30/2020
Total		$	88,116,667



Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2019		Expiration Date
Ablacon, Inc.	Medical Devices	$	2,500,000	01/31/2020
Ainsly, Inc.	Internet	1,500,000		01/31/2020
Airvine Scientific, Inc.	Wireless	125,000		03/31/2020
Apollo Flight Research Inc.	Other Technology	250,000		01/31/2020
ArborMetrix, Inc.	Software	750,000		04/30/2020
Beanfields, PBC	Other Technology	625,000		06/30/2020
BW Industries, Inc.	Other Technology	2,000,000		07/31/2020
Callisto Media, Inc.	Technology Services	10,000,000		12/31/2020
Canary Technologies Corp.	Software	250,000		09/30/2020
Cesium, Inc.	Internet	375,000		03/31/2020
Cloudleaf, Inc.	Software	1,500,000		10/15/2020
DOSH Holdings, Inc.	Other Technology	3,750,000		01/15/2020
eXo Imaging, Inc.	Medical Devices	6,000,000		11/30/2020
GoForward, Inc.	Other Healthcare	6,250,000		07/01/2020
Hello Heart Inc.	Other Healthcare	1,750,000		08/31/2020
HumanAPI, Inc.	Other Healthcare	500,000		01/31/2020
Kids on 45th, Inc.	Internet	500,000		01/31/2020
Klar Holdings Limited	Technology Services	250,000		03/31/2020
Liftit, Inc.	Technology Services	500,000		01/30/2020



Borrower	Industry	Unexpired Unfunded Commitment as of December 31, 2019		Expiration Date
Lucideus, Inc.	Software	500,000		07/15/2020
Lukla, Inc.	Internet	750,000		01/31/2021
Marley Spoon, Inc.	Internet	3,750,000		07/31/2020
Medable, Inc.	Software	2,000,000		07/31/2020
Merchbar, Inc.	Internet	250,000		01/30/2020
Noteleaf, Inc.	Other Technology	1,000,000		01/31/2020
OneLocal, Inc.	Internet	1,000,000		07/31/2020
Owl Cameras, Inc.	Software	3,000,000		01/01/2020
Parallel Wireless, Inc.	Wireless	6,500,000		03/31/2020
Percepto Inc.	Other Technology	1,000,000		05/31/2020
Pitzi, Ltd.	Other Technology	2,500,000		11/30/2020
Quartzy, Inc.	Biotechnology	2,250,000		10/15/2020
Solugen, Inc.	Technology Services	1,250,000		01/31/2020
Stay Alfred, Inc.	Internet	7,500,000		06/30/2020
Stitch Labs, Inc.	Software	750,000		01/31/2020
The Safe and Fair Food Company LLC	Other Technology	1,250,000		01/31/2020
Trendalytics Innovation Labs, Inc.	Software	450,000		01/31/2020
Visual Supply Company	Internet	2,500,000		03/31/2020
Voodoo Manufacturing, Inc.	Other Technology	375,000		02/28/2020
Total		$	77,950,000

Because venture loans are privately negotiated transactions, investments in these assets are relatively illiquid. It is the Management’s experience that not all unexpired unfunded commitments will be used by borrowers. Many credit agreements contain provisions which are milestone dependent and not all borrowers will achieve these milestones. Additionally, the Fund’s credit agreements contain provisions that give relief from funding obligations in the event the borrower has a materially adverse change in its financial condition. Therefore, the unexpired unfunded commitments do not necessarily reflect future cash requirements or future investments for the Fund.

The Fund seeks to maintain the requirements to qualify for the special pass-through status available to RICs under the Code, and thus to be relieved of federal income tax on that part of its net investment income and realized capital gains that it distributes to its shareholder. To qualify as a RIC, the Fund must distribute to its shareholder for each taxable year at least 90% of its investment company taxable income (consisting generally of net investment income and net short-term capital gain) (the “Distribution Requirement”). To the extent that the terms of the Fund’s venture loans provide for the receipt by the Fund of additional interest at the end of the loan term or provide for the receipt by the Fund of a purchase price for the asset at the end of the loan term (“residual income”), the Fund would be required to accrue such residual income over the life of the loan, and to include such accrued undistributed income in its gross income for each taxable year even if it receives no portion of such residual income in that year. Thus, in order to meet the Distribution Requirement and avoid payment of income taxes or an excise tax on undistributed income, the Fund may be required in a particular year to distribute as a dividend an amount in excess of the total amount of income it actually receives. Those distributions will be made from the Fund’s cash assets, from amounts received through amortization of loans or from borrowed funds.

As of March 31, 2020, the Fund had cash reserves of $4.4 million and approximately $80.6 million in scheduled loan receivable payments over the next twelve months. Additionally, the Fund has access to uncalled capital of $253.0 million and recallable capital of $20.9 million as a liquidity source, and a borrowing base that grows as it funds additional commitments. These amounts are sufficient to meet the current commitment backlog and operational

expenses of the Fund over the next year. The Fund regularly evaluates potential future liquidity resources and demands before making additional future commitments.

On April 24, 2019, the Fund’s sole shareholder, the Company, approved a reduced asset coverage ratio of 150% for the Fund as permitted in Section 61(a)(2) of the 1940 Act. Accordingly, the Fund is permitted to borrow in any amount so long as its asset coverage ratio, as defined in the 1940 Act, is at least 150% after giving effect to such borrowings. As of March 31, 2020, the Fund’s asset coverage ratio was 255%.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Fund’s business activities contain various elements of risk, of which Management considers interest rate and credit risk to be the principal types of risks. Because the Fund considers the management of risk essential to conducting its business and to maintaining profitability, the Fund’s risk management procedures are designed to identify and analyze the Fund’s risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.

The Fund manages its market risk by maintaining a portfolio that is diverse by industry, size of investment, stage of development, and borrower. The Fund has limited exposure to public market price fluctuations as the Fund primarily invests in private business enterprises and distributes all equity investments upon receipt to the Company.

The Fund’s investments are subject to market risk based on several factors, including, but not limited to, the borrower’s credit history, available cash, support of the borrower’s underlying investors, available liquidity, “burn rate,” revenue income, security interest, secondary markets for collateral, the size of the loan, term of the loan and the ability to exit via initial public offering or merger and acquisition.

The Fund’s exposure to interest rate sensitivity is regularly monitored and analyzed by measuring the characteristics of assets and liabilities. The Fund utilizes various methods to assess interest rate risk in terms of the potential effect on interest income net of interest expense, the value of net assets and the value at risk in an effort to ensure that the Fund is insulated from any significant adverse effects from changes in interest rates. At March 31, 2020, the outstanding debt balance was $91.5 million at a weighted-average floating interest rate of 0.92%, for which the Fund had a weighted-average interest rate swap in place with a weighted-average fixed interest rate of 2.28% on $57.0 million of the notional principal amount, leaving the Fund with exposure to interest rate changes on the un-hedged portion of the loan.

Because all of the Fund’s loans impose a fixed interest rate upon funding, changes in short-term interest rates will not directly affect interest income associated with the loan portfolio as of March 31, 2020. However, those changes could have the potential to change the Fund’s ability to originate loan commitments, acquire and renew bank facilities, and engage in other investment activities. Further, changes in short-term interest rates could also affect interest rate expense, realized gain from investments and interest on the Fund’s short-term investments.

Based on the Fund’s Condensed Statements of Assets and Liabilities as of March 31, 2020, the following table shows the approximate annualized increase (decrease) in components of net assets resulting from operations of hypothetical base rate changes in interest rates, assuming no changes in investments, borrowings, cash balances and interest rate swap derivatives.



Effect of Interest Rate Change By	Other Interest and Other Income (Loss)			Gain (Loss) from Derivative Instruments			Interest Income (Expense)			Total Income (Loss)
(0.50)%	$	(21,933	)	$	(285,000	)	$	457,500		$	150,567
1%	$	43,866		$	570,000		$	(915,000	)	$	(301,134	)
2%	$	87,731		$	1,140,000		$	(1,830,000	)	$	(602,269	)
3%	$	131,597		$	1,710,000		$	(2,745,000	)	$	(903,403	)
4%	$	175,463		$	2,280,000		$	(3,660,000	)	$	(1,204,537	)
5%	$	219,328		$	2,850,000		$	(4,575,000	)	$	(1,505,672	)

Additionally, a change in the interest rate may affect the value of the interest rate swap and effect Net change in unrealized gain (loss) from derivative instruments. The amount of any such effect will be contingent upon market expectations for future interest rate changes. Any increases in expected future rates will increase the value of the interest rate swap while any rate decreases will decrease the value.

Although Management believes that the foregoing analysis is indicative of the Fund’s sensitivity to interest rate changes, it does not take into consideration potential changes in the credit market, credit quality, size and composition of the assets in the portfolio. It also does not assume any new fundings to borrowers, repayments from borrowers or defaults on borrowings. Accordingly, no assurances can be given that actual results would not differ materially from the table above.

Because the Fund currently borrows, its net investment income is highly dependent upon the difference between the rate at which it borrows and the rate at which it invests the amounts borrowed. Accordingly, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on the Fund’s investment activities and net investment income. The Fund’s exposure to movement in short-term interest rates stems from the Fund borrowing at a floating interest rate but then making loans with a fixed rate at the time the loans are extended. The Fund, therefore, attempts to limit its interest rate risk by acquiring interest rate swaps to hedge its interest rate exposure.

The Fund is not sensitive to changes in foreign currency exchange rates, commodity prices and other market rates or prices.

Item 4. Controls and Procedures

Disclosure Controls and Procedures:

At the end of the period covered by this report, the Fund carried out an evaluation under the supervision and with the participation of its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Fund’s disclosure controls and procedures pursuant to Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934 (“Exchange Act”). Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Fund’s disclosure controls and procedures were effective as of the end of the period in ensuring that information required to be disclosed was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and in providing reasonable assurance that information required to be disclosed by the Fund in such reports is accumulated and communicated to the Fund’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Controls:

There have not been any changes in the Fund’s internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the Fund’s fiscal quarter ended March 31, 2020 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

The Fund may become party to certain lawsuits from time to time in the normal course of business. While the outcome of any legal proceedings cannot now be predicted with certainty, the Fund does not expect any such proceedings will have a material effect upon the Fund’s financial condition or results of operation. Management is not aware of any pending legal proceedings involving the Fund. The Fund is not a party to any material legal proceedings.

Item 1A. Risk Factors

The following discussion point should be read in conjunction with Item 1A - “Risk Factors” in the Fund’s 2019 Annual Report on Form 10-K for a detailed description of the risks attendant to the Fund and its business. Except as set forth below, there have been no material changes to the risk factors reported in the Fund’s 2019 Annual Report on Form 10-K.

Public Health Crises and Coronavirus Risk. Public health crises, such as the recent outbreak of the novel strain of coronavirus (“COVID-19”), may have direct and indirect adverse impact on the Fund’s portfolio companies’ business operations and results of operations. Several countries and individual U.S. states have reacted to this rapidly evolving COVID-19 outbreak by instituting quarantines, shelter-in-place orders, travel restrictions, bans on public gathering, and closures of a wide range of businesses. These measures have had an adverse impact on the global economy and contributed to significant volatility in the financial markets. The degree to which the COVID-19 outbreak may impact the Fund’s portfolio companies’ business operations and results of operations, and the extent and duration of financial market volatility, is unknown at this time and will depend on future developments, including the severity and the duration of the outbreak. Management is continuing to work with the Fund’s portfolio companies that may be directly or indirectly affected by the outbreak to evaluate the potential impact on the borrowers’ ability to make timely payments and creditworthiness.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits



Exhibit Number	Description
3(i)	Amended and Restated Articles of Incorporation of the Fund as filed with the Maryland Secretary of State on September 25, 2017, incorporated by reference to the Fund’s Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
3(ii)	Amended and Restated Bylaws of the Fund, incorporated by reference to the Fund’s Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
4.1	Form of Stock Purchase Agreement between the Fund and the Company, incorporated by reference to the Fund’s Registration Statement on Form 10 filed with the Securities and Exchange Commission on October 18, 2017.
31.1	Chief Executive Officer (Principal Executive Officer) certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification).
31.2	Chief Financial Officer (Principal Financial Officer) certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Rules 13a -14(a) and 15d-14(a) Certification).
32.1	Chief Executive Officer (Principal Executive Officer) certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).
32.2	Chief Financial Officer (Principal Financial Officer) certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Section 1350 Certification).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

VENTURE LENDING & LEASING IX, INC.

(Registrant)



By:	/s/ Maurice C. Werdegar	By:	/s/ Judy N. Bornstein
Maurice C. Werdegar		Judy N. Bornstein
Chief Executive Officer		Chief Financial Officer
(Principal Executive Officer)		(Principal Financial Officer)
Date:	May 12, 2020	Date:	May 12, 2020

March 31, 2020

Derivatives:

Location on Condensed Statements of Assets and Liabilities

Fair Value

Interest rate swap and floor agreement

Derivative liability - interest rate swap