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EX-32.2 - VLL8INC 10-Q 03.31.2020 EXHIBIT 32.2 - Venture Lending & Leasing VIII, Inc.vll810q33120ex322.htm
EX-32.1 - VLL8INC 10-Q 03.31.2020 EXHIBIT 32.1 - Venture Lending & Leasing VIII, Inc.vll810q33120ex321.htm
EX-31.2 - VLL8INC 10-Q 03.31.2020 EXHIBIT 31.2 - Venture Lending & Leasing VIII, Inc.vll810q33120ex312.htm
EX-31.1 - VLL8INC 10-Q 03.31.2020 EXHIBIT 31.1 - Venture Lending & Leasing VIII, Inc.vll810q33120ex311.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 814-01162

Venture Lending & Leasing VIII, Inc.
(Exact Name of Registrant as specified in its charter)
Maryland
47-3919702
(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 VIII, 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 VIII, 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 $384,474,328 and $379,044,418)
$
363,541,670

 
$
371,955,824

Cash and cash equivalents
4,576,995

 
12,569,629

Dividend and interest receivables
4,474,921

 
4,702,811

Other assets
1,074,543

 
551,337

Total assets
373,668,129

 
389,779,601

 
 
 
 
LIABILITIES
 
 
 
Borrowings under debt facility
170,000,000

 
179,000,000

Accrued management fees
2,335,426

 
2,436,123

Derivative liability - interest rate swap
620,451

 
347,183

Accounts payable and other accrued liabilities
1,221,881

 
1,411,131

Total liabilities
174,177,758

 
183,194,437

 
 
 
 
NET ASSETS
$
199,490,371

 
$
206,585,164

 
 
 
 
Analysis of Net Assets:
 
 
 
 
 
 
 
Capital paid in on shares of capital stock
$
345,075,000

 
$
314,575,000

Total distributable losses
(145,584,629
)
 
(107,989,836
)
Net assets (equivalent to $1,994.90 and $2,065.85 per share based on 100,000 shares of capital stock outstanding - See Note 5 and Note 11)
$
199,490,371

 
$
206,585,164

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

 
$
77,950,000










See notes to condensed financial statements.

3



VENTURE LENDING & LEASING VIII, 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
$
15,690,096

 
$
15,463,294

       Other interest and other income
517,152

 
75,012

Total investment income
16,207,248

 
15,538,306

 
 
 
 
EXPENSES:
 
 
 
Management fees
2,335,426

 
2,514,805

Interest expense
2,042,010

 
2,740,819

Banking and professional fees
119,054

 
161,257

Other operating expenses
68,191

 
54,990

Total expenses
4,564,681

 
5,471,871

Net investment income
11,642,567

 
10,066,435

 
 
 
 
Net realized gain (loss) from loans
(434,877
)
 
4,125

Net realized gain (loss) from derivative instruments
(206,539
)
 
76,102

Net change in unrealized loss from loans
(13,844,063
)
 
(384,483
)
Net change in unrealized loss from derivative instruments
(273,268
)
 
(323,193
)
Net realized and change in unrealized loss from loans and derivative instruments
(14,758,747
)
 
(627,449
)
Net increase (decrease) in net assets resulting from operations
$
(3,116,180
)
 
$
9,438,986

 
 
 
 
Amounts per common share:
 
 
 
Net increase (decrease) in net assets resulting from operations per share
$
(31.16
)
 
$
94.39

Weighted average shares outstanding
100,000

 
100,000

 






See notes to condensed financial statements.

4



VENTURE LENDING & LEASING VIII, 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

 
$
297,574,900

 
$
(81,031,049
)
 
$
216,543,951

Net increase in net assets resulting from operations

 

 

 
9,438,986

 
9,438,986

Distributions to shareholder

 

 

 
(5,488,724
)
 
(5,488,724
)
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2019
100,000

 
$
100

 
$
297,574,900

 
$
(77,080,787
)
 
$
220,494,213

 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2019
100,000

 
$
100

 
$
314,574,900

 
$
(107,989,836
)
 
$
206,585,164

Net decrease in net assets resulting from operations

 

 

 
(3,116,180
)
 
(3,116,180
)
Contributions from shareholder

 

 
30,500,000

 

 
30,500,000

Distributions to shareholder

 

 

 
(34,478,613
)
 
(34,478,613
)
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2020
100,000

 
$
100

 
$
345,074,900

 
$
(145,584,629
)
 
$
199,490,371



See notes to condensed financial statements.

5



VENTURE LENDING & LEASING VIII, 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 (decrease) in net assets resulting from operations
$
(3,116,180
)
 
$
9,438,986

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Net realized (gain) loss from loans
434,877

 
(4,125
)
Net realized (gain) loss from derivative instruments
206,539

 
(76,102
)
Net change in unrealized loss from loans
13,844,063

 
384,483

Net change in unrealized loss from derivative instruments
273,268

 
323,193

Amortization of deferred costs related to borrowing facility and interest rate cap agreements
138,126

 
138,126

Net (increase) decrease in dividend and interest receivables
227,890

 
(82,006
)
Net increase in other assets
(661,332
)
 
(498,836
)
Net decrease in accounts payable, other accrued liabilities and accrued management fees
(289,947
)
 
(2,061,313
)
Origination of loans
(59,383,334
)
 
(32,187,500
)
Principal payments on loans
53,199,657

 
35,468,065

Acquisition of equity securities
(4,159,722
)
 
(1,923,093
)
Net cash provided by operating activities
713,905

 
8,919,878

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Cash distribution to shareholder
(30,000,000
)
 
(3,000,000
)
Contributions from shareholder
30,500,000

 

  Borrowings under debt facility
42,000,000

 
10,500,000

Repayments of borrowings under debt facility
(51,000,000
)
 
(35,000,000
)
Payments made for interest rate swap agreement
(206,539
)
 

Payments received from interest rate swap

 
76,102

Net cash used in financing activities
(8,706,539
)
 
(27,423,898
)
Net decrease in cash and cash equivalents
(7,992,634
)
 
(18,504,020
)
CASH AND CASH EQUIVALENTS:
 
 
 
Beginning of period
12,569,629

 
19,388,362

End of period
$
4,576,995

 
$
884,342

SUPPLEMENTAL DISCLOSURES:
 
 
 
CASH PAID DURING THE PERIOD:
   

 
 
Interest - Debt facility
$
1,831,174

 
$
4,882,674

NON-CASH OPERATING AND FINANCING ACTIVITIES:
   

 
 
Distributions of equity securities and convertible loan to shareholder
$
4,478,613

 
$
2,488,725

Receipt of equity securities and convertible loan as repayment of loans
$
318,891

 
$
565,632

See notes to condensed financial statements.

6



VENTURE LENDING & LEASING VIII, 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%
 
 
 
$
1,484,601

 
$
1,460,247

 
$
1,460,247

 
12/1/2022
 
Antheia, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
1,483,166

 
1,417,002

 
1,417,002

 
12/1/2022
 
Antheia, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,967,767

 
2,877,249

 
2,877,249

 
 
 
Orpheus Therapeutics, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
178,510

 
174,288

 

 
*
 
Quartzy, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
742,261

 
634,792

 
634,792

 
8/1/2023
Biotechnology Total
 
 
1.8%
 
 
 
 
 
 
 
$
3,888,538

 
$
3,686,329

 
$
3,512,041

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Computers & Storage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canary Connect, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
$
439,940

 
$
398,884

 
$
398,884

 
12/1/2020
 
Canary Connect, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
2,471,925

 
2,380,186

 
2,380,186

 
3/1/2023
 
Canary Connect, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,911,865

 
2,779,070

 
2,779,070

 
 
Computers & Storage Total
 
 
1.4%
 
 
 
 
 
 
 
$
2,911,865

 
$
2,779,070

 
$
2,779,070

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Internet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ainsly, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
$
240,181

 
$
240,181

 
$
240,181

 
8/1/2022
 
Ainsly, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
720,493

 
665,445

 
665,445

 
8/1/2022
 
Ainsly, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
960,674

 
905,626

 
905,626

 
 
 
Amino Payments, Inc.
 
 
 
Senior Secured
 
10.8%
 
 
 
932,240

 
882,121

 
882,121

 
3/1/2022
 
Bombfell, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
567,407

 
560,884

 
215,072

 
10/1/2021
 
Cesium, Inc.
 
 
 
Senior Secured
 
10.3%
 
 
 
123,899

 
121,392

 
121,392

 
1/1/2023
 
Cesium, Inc.
 
 
 
Senior Secured
 
10.3%
 
 
 
247,716

 
230,526

 
230,526

 
1/1/2023
 
Cesium, Inc. Subtotal
 
 
 
 
 
 
 
 
 
371,615

 
351,918

 
351,918

 
 
 
Clearsurance, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
426,325

 
417,300

 
417,300

 
3/1/2021
 
Clearsurance, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
625,274

 
619,013

 
619,013

 
9/1/2021
 
Clearsurance, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,051,599

 
1,036,313

 
1,036,313

 
 
 
Daily Muse, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,849,452

 
1,797,459

 
1,797,459

 
12/1/2021
 
Daily Muse, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,849,815

 
1,833,333

 
1,833,333

 
12/1/2021
 
Daily Muse, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,699,267

 
3,630,792

 
3,630,792

 
 
 
FLYR, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,883,108

 
1,855,855

 
1,153,682

 
1/1/2022
 
FLYR, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
941,184

 
889,005

 
552,645

 
9/1/2021
 
FLYR, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,824,292

 
2,744,860

 
1,706,327

 
 
 
iZENEtech, Inc. ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
2,595,940

 
2,570,141

 
2,570,141

 
6/1/2021
 
iZENEtech, Inc. ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
1,769,793

 
1,731,120

 
1,731,120

 
1/1/2021
 
iZENEtech, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
4,365,733

 
4,301,261

 
4,301,261

 
 
 
Lenddo International ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
726,313

 
707,451

 
315,804

 
1/1/2021
 
Linden Research Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
7,367,288

 
7,160,638

 
7,160,638

 
6/1/2022
 
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%
 
 
 
4,947,711

 
4,717,997

 
4,717,997

 
12/1/2022
 
MyPizza Technologies, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
2,474,151

 
2,424,623

 
2,424,623

 
2/1/2023
 
MyPizza Technologies, Inc. Subtotal
 
 
 
 
 
 
 
 
 
7,421,862

 
7,142,620

 
7,142,620

 
 

7



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
(b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
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
 
Relay Network, LLC
 
 
 
Senior Secured
 
8.0%
 
4.4%
 
254,261

 
251,675

 
251,675

 
9/1/2020
 
Relay Network, LLC
 
 
 
Senior Secured
 
8.0%
 
4.4%
 
254,276

 
253,273

 
253,273

 
9/1/2020
 
Relay Network, LLC Subtotal
 
 
 
 
 
 
 
 
 
508,537

 
504,948

 
504,948

 
 
 
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%
 
 
 
196,240

 
192,238

 
110,397

 
2/1/2022
 
Serface Care, Inc.
 
 
 
Senior Secured
 
12.3%
 
 
 
588,575

 
557,470

 
320,139

 
2/1/2022
 
Serface Care, Inc. Subtotal
 
 
 
 
 
 
 
 
 
784,815

 
749,708

 
430,536

 
 
 
ShadowApp, PBC
 
 
 
Senior Secured
 
11.5%
 
 
 
527,409

 
502,837

 
502,837

 
4/1/2022
 
SpotOn Computing, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
1,893,528

 
1,853,788

 
634,213

 
*
 
Stay Alfred, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
4,658,800

 
4,548,177

 
1,416,215

 
12/1/2021
 
Stay Alfred, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
4,947,351

 
4,601,666

 
1,506,109

 
7/1/2023
 
Stay Alfred, Inc. Subtotal
 
 
 
 
 
 
 
 
 
9,606,151

 
9,149,843

 
2,922,324

 
 
 
Tango Card, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
439,740

 
437,208

 
437,208

 
11/1/2020
 
Verishop, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,474,448

 
2,425,888

 
2,425,888

 
12/1/2023
 
Verishop, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,473,593

 
2,327,750

 
2,327,750

 
12/1/2023
 
Verishop, Inc. Subtotal
 
 
 
 
 
 
 
 
 
4,948,041

 
4,753,638

 
4,753,638

 
 
Internet Total
 
 
22.4%
 
 
 
 
 
 
 
$
57,316,022

 
$
54,189,490

 
$
44,647,232

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
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%
 
 
 
494,948

 
460,566

 
460,566

 
10/1/2023
 
CytoVale, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
520,436

 
512,952

 
512,952

 
6/1/2022
 
CytoVale, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
429,723

 
423,304

 
423,304

 
7/1/2022
 
CytoVale, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
469,226

 
445,991

 
445,991

 
3/1/2022
 
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%
 
 
 
2,968,408

 
2,901,268

 
2,901,268

 
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%
 
 
 
3,458,151

 
3,268,596

 
3,268,596

 
4/1/2023
 
NeuMoDx Molecular, Inc. Subtotal
 
 
 
 
 
 
 
 
 
9,888,267

 
9,578,194

 
9,578,194

 
 
 
RadiAction Ltd. ** ^
 
 
 
Senior Secured
 
11.5%
 
 
 
659,193

 
636,047

 
636,047

 
10/1/2021
 
RadiAction Ltd. ** ^
 
 
 
Senior Secured
 
11.5%
 
 
 
843,733

 
831,449

 
831,449

 
4/1/2022
 
RadiAction Ltd. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,502,926

 
1,467,496

 
1,467,496

 
 
 
Renovia, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
8,271,102

 
8,271,102

 
8,271,102

 
1/1/2023
Medical Devices Total
 
 
17.9%
 
 
 
 
 
 
 
$
38,756,654

 
$
36,735,749

 
$
35,676,979

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Healthcare
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4G Clinical LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
$
148,215

 
$
147,037

 
$
147,037

 
7/1/2020
 
Caredox, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
824,799

 
799,879

 
629,354

 
10/1/2021
 
Clover Health Investments Corporation
 
 
 
Senior Secured
 
11.3%
 
 
 
8,701,341

 
8,701,341

 
8,701,341

 
10/1/2022
 
Clover Health Investments Corporation
 
 
 
Senior Secured
 
11.0%
 
 
 
13,322,622

 
13,322,622

 
13,322,622

 
3/1/2022
 
Clover Health Investments Corporation Subtotal
 
 
 
 
 
 
 
 
 
22,023,963

 
22,023,963

 
22,023,963

 
 
 
Discover Echo, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
244,652

 
238,122

 
238,122

 
12/1/2020
 
Emerald Cloud Lab, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,765,598

 
1,652,070

 
1,652,070

 
12/1/2021
 
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

8



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
(b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
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.
 
 
 
Senior Secured
 
10.8%
 
 
 
560,943

 
544,454

 
544,454

 
7/1/2021
 
Hello Heart Inc.
 
 
 
Senior Secured
 
10.8%
 
 
 
986,652

 
975,339

 
975,339

 
10/1/2021
 
Hello Heart Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,776,431

 
3,651,682

 
3,651,682

 
 
 
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

 
 
 
mPharma Data, Inc. ** ^
 
 
 
Senior Secured
 
10.0%
 
 
 
99,646

 
98,370

 
98,370

 
11/1/2020
 
mPharma Data, Inc. ** ^
 
 
 
Senior Secured
 
10.0%
 
 
 
147,024

 
146,174

 
146,174

 
3/1/2021
 
mPharma Data, Inc. ** ^
 
 
 
Senior Secured
 
10.0%
 
 
 
1,897,887

 
1,862,937

 
1,862,937

 
11/1/2021
 
mPharma Data, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
2,144,557

 
2,107,481

 
2,107,481

 
 
 
Myolex, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
762,531

 
726,537

 
238,967

 
*
 
Naked Biome, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
523,049

 
512,579

 
58,569

 
3/1/2021
 
Robin Care, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
697,325

 
668,537

 
668,537

 
7/1/2021
 
Sparta Software Corporation
 
 
 
Senior Secured
 
10.0%
 
2.5%
 
23,594

 
23,400

 
23,400

 
6/1/2020
 
Sparta Software Corporation
 
 
 
Senior Secured
 
11.5%
 
2.2%
 
440,601

 
425,925

 
425,925

 
5/1/2022
 
Sparta Software Corporation Subtotal
 
 
 
 
 
 
 
 
 
464,195

 
449,325

 
449,325

 
 
 
Therapydia, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
282,854

 
276,930

 
276,930

 
1/1/2023
 
Therapydia, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
246,738

 
231,157

 
231,157

 
8/1/2022
 
Therapydia, Inc.
 
 
 
Senior Secured
 
12.5%
 
1.7%
 
124,078

 
124,078

 
124,078

 
6/1/2023
 
Therapydia, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
275,778

 
270,149

 
270,149

 
12/1/2022
 
Therapydia, Inc.
 
 
 
Senior Secured
 
12.0%
 
1.7%
 
124,207

 
115,387

 
115,387

 
3/1/2023
 
Therapydia, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,053,655

 
1,017,701

 
1,017,701

 
 
 
Zillion Group, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
328,413

 
326,368

 
264,759

 
12/1/2020
 
Zillion Group, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
149,592

 
148,088

 
120,133

 
7/1/2020
 
Zillion Group, Inc. Subtotal
 
 
 
 
 
 
 
 
 
478,005

 
474,456

 
384,892

 
 
Other Healthcare Total
 
 
20.9%
 
 
 
 
 
 
 
$
44,060,691

 
$
42,850,163

 
$
41,648,494

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Technology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8i Corporation
 
 
 
Senior Secured
 
11.8%
 
 
 
$
906,548

 
$
895,851

 
$
895,851

 
12/1/2020
 
Abiquo Group, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
281,998

 
272,229

 
272,229

 
7/1/2021
 
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%
 
 
 
247,686

 
242,749

 
242,749

 
1/1/2023
 
Apollo Flight Research Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
451,430

 
434,076

 
434,076

 
6/1/2022
 
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

 
600,394

 
600,394

 
3/1/2023
 
Beanfields, PBC
 
 
 
Senior Secured
 
12.5%
 
 
 
865,083

 
817,075

 
817,075

 
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
 
BloomLife, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
11,389

 
11,343

 
11,343

 
4/1/2020
 
Brightside Benefit, Inc.
 
 
 
Senior Secured
 
12.1%
 
 
 
635,952

 
601,611

 
601,611

 
9/1/2022
 
Brightside Benefit, Inc.
 
 
 
Senior Secured
 
12.4%
 
 
 
988,681

 
972,446

 
972,446

 
3/1/2023
 
Brightside Benefit, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,624,633

 
1,574,057

 
1,574,057

 
 
 
BW Industries, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,979,218

 
1,779,010

 
1,779,010

 
5/1/2023
 
BW Industries, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,979,127

 
1,931,868

 
1,931,868

 
6/1/2023
 
BW Industries, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,958,345

 
3,710,878

 
3,710,878

 
 
 
Consumer Physics, Inc. ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
822,994

 
793,819

 
634,438

 
1/1/2022
 
DOSH Holdings, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
4,513,446

 
4,342,738

 
4,342,738

 
6/1/2022
 
DOSH Holdings, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,128,684

 
1,113,090

 
1,113,090

 
6/1/2022
 
DOSH Holdings, Inc. Subtotal
 
 
 
 
 
 
 
 
 
5,642,130

 
5,455,828

 
5,455,828

 
 
 
Eguana Technologies, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
1,831,335

 
1,728,082

 
1,728,082

 
2/1/2022

9



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
(b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
ESM Group International , Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
395,728

 
373,542

 
373,542

 
12/1/2021
 
Fitplan, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
203,711

 
203,711

 
198,868

 
3/1/2022
 
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. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,222,245

 
1,186,642

 
1,158,432

 
 
 
Flo Water, Inc.
 
 
 
Senior Secured
 
11.4%
 
 
 
457,728

 
447,707

 
447,707

 
5/1/2021
 
Flo Water, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
25,989

 
25,763

 
25,763

 
5/1/2020
 
Flo Water, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,967,360

 
1,837,046

 
1,837,046

 
12/1/2023
 
Flo Water, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,451,077

 
2,310,516

 
2,310,516

 
 
 
Gap Year Global, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
90,768

 
86,359

 

 
*
 
Heartwork, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
379,462

 
371,981

 
27,353

 
*
 
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

 
484,163

 
386,119

 
5/1/2023
 
Higher Ground Education, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,483,075

 
1,453,951

 
1,159,522

 
4/1/2023
 
Higher Ground Education, Inc. Subtotal
 
 
 
 
 
 
 
 
 
4,942,912

 
4,753,978

 
3,791,285

 
 
 
Hint, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,071,420

 
1,042,495

 
1,042,495

 
3/1/2021
 
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

 
4,200,777

 
4,200,777

 
6/1/2023
 
Hint, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,403,311

 
1,403,311

 
1,403,311

 
7/1/2021
 
Hint, Inc. Subtotal
 
 
 
 
 
 
 
 
 
8,866,650

 
8,046,844

 
8,046,844

 
 
 
Kobo360, Inc. ** ^
 
 
 
Senior Secured
 
11.3%
 
 
 
64,474

 
63,940

 
63,940

 
6/1/2020
 
Kobo360, Inc. ** ^
 
 
 
Senior Secured
 
11.3%
 
 
 
127,160

 
127,161

 
127,161

 
9/1/2020
 
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%
 
 
 
4,952,227

 
4,593,081

 
4,593,081

 
7/1/2023
 
Lambda School, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
2,476,465

 
2,476,465

 
2,476,465

 
8/1/2023
 
Lambda School, Inc. Subtotal
 
 
 
 
 
 
 
 
 
7,428,692

 
7,069,546

 
7,069,546

 
 
 
LanzaTech New Zealand Ltd.
 
 
 
Senior Secured
 
13.3%
 
 
 
1,086,419

 
1,080,877

 
1,080,877

 
3/1/2021
 
LanzaTech New Zealand Ltd.
 
 
 
Senior Secured
 
13.0%
 
 
 
699,939

 
697,027

 
697,027

 
9/1/2020
 
LanzaTech New Zealand Ltd. Subtotal
 
 
 
 
 
 
 
 
 
1,786,358

 
1,777,904

 
1,777,904

 
 
 
Make School, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
594,810

 
577,804

 
577,804

 
8/1/2021
 
Neuehouse, LLC
 
 
 
Senior Secured
 
12.0%
 
 
 
1,750,000

 
1,297,265

 
1,297,265

 
*
 
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

 
 
 
Northern Quinoa Production Corporation ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
6,278,645

 
6,009,362

 
5,423,543

 
5/1/2022
 
Noteleaf, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,482,717

 
1,412,370

 
1,412,370

 
4/1/2023
 
Noteleaf, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
989,470

 
967,182

 
967,182

 
9/1/2023
 
Noteleaf, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
330,630

 
328,716

 
328,716

 
9/1/2020
 
Noteleaf, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,802,817

 
2,708,268

 
2,708,268

 
 
 
Opya, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
214,449

 
208,884

 
208,884

 
4/1/2021
 
Opya, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,279

 
942,428

 
942,428

 
1/1/2023
 
Opya, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,203,728

 
1,151,312

 
1,151,312

 
 
 
Ozy Media, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
2,447,760

 
2,319,228

 
2,319,228

 
6/1/2023
 
PDQ Enterprises LLC **
 
 
 
Senior Secured
 
11.0%
 
 
 
1,272,504

 
1,263,494

 
1,263,494

 
2/1/2021
 
Percepto Robotics, Ltd. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
140,177

 
138,636

 
138,636

 
8/1/2020
 
Percepto Robotics, Ltd. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
98,866

 
98,162

 
98,162

 
12/1/2020
 
Percepto Robotics, Ltd. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
239,043

 
236,798

 
236,798

 
 
 
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

 
 

10



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
(b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
Pitzi, Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
494,779

 
349,084

 
349,084

 
11/1/2023
 
PLAE, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
621,378

 
614,983

 
8,359

 
*
 
Plant Prefab, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
391,468

 
368,676

 
368,676

 
2/1/2022
 
Plant Prefab, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
480,728

 
472,468

 
472,468

 
8/1/2022
 
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
 
Plenty Unlimited, Inc.
 
 
 
Senior Secured
 
9.0%
 
9.4%
 
600,282

 
596,803

 
596,803

 
3/1/2021
 
Plenty Unlimited, Inc.
 
 
 
Senior Secured
 
9.0%
 
11.7%
 
547,400

 
539,664

 
539,664

 
1/1/2021
 
Plenty Unlimited, Inc.
 
 
 
Senior Secured
 
9.0%
 
11.7%
 
1,884,596

 
1,841,835

 
1,841,835

 
9/1/2021
 
Plenty Unlimited, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,032,278

 
2,978,302

 
2,978,302

 
 
 
Plethora, Inc.
 
 
 
Senior Secured
 
11.2%
 
 
 
2,465,517

 
2,261,110

 
2,261,110

 
3/1/2022
 
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%
 
 
 
218,251

 
218,932

 
218,932

 
5/1/2022
 
Saber es Poder, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
406,328

 
390,596

 
390,596

 
3/1/2022
 
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
 
TAE Technologies, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,164,557

 
1,155,018

 
1,155,018

 
4/1/2021
 
TAE Technologies, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
4,321,612

 
4,245,134

 
4,245,134

 
3/1/2021
 
TAE Technologies, Inc. Subtotal
 
 
 
 
 
 
 
 
 
5,486,169

 
5,400,152

 
5,400,152

 
 
 
Terramera, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
857,705

 
831,351

 
831,351

 
4/1/2021
 
Terramera, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
428,949

 
424,705

 
424,705

 
4/1/2021
 
Terramera, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,286,654

 
1,256,056

 
1,256,056

 
 
 
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%
 
92,855

 
92,855

 
92,855

 
8/1/2024
 
Thras.io, Inc.
 
 
 
Senior Secured
 
12.0%
 
47.4%
 
287,043

 
257,040

 
257,040

 
4/1/2024
 
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%
 
375,444

 
375,444

 
375,444

 
6/1/2024
 
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%
 
189,410

 
189,410

 
189,410

 
5/1/2024
 
Thras.io, Inc.
 
 
 
Senior Secured
 
12.0%
 
45.1%
 
282,092

 
282,092

 
282,092

 
6/1/2024
 
Thras.io, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,884,378

 
1,854,375

 
1,854,375

 
 
 
UniEnergy Technologies LLC
 
 
 
Senior Secured
 
12.3%
 
 
 
1,996,593

 
1,836,912

 
1,414,989

 
12/1/2020
 
Veev Group, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
723,825

 
700,900

 
700,900

 
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

 
3,623,304

 
3,623,304

 
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
 
11.0%
 
 
 
111,103

 
110,357

 
72,483

 
7/1/2020
 
Virtuix Holdings, Inc.
 
 
 
Senior Secured
 
12.3%
 
 
 
211,004

 
207,203

 
136,091

 
4/1/2022
 
Virtuix Holdings, Inc. Subtotal
 
 
 
 
 
 
 
 
 
322,107

 
317,560

 
208,574

 
 
 
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
 
 
63.5%
 
 
 
 
 
 
 
$
137,650,515

 
$
129,951,803

 
$
126,647,180

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Security
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Axonius, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
$
314,350

 
$
305,869

 
$
305,869

 
9/1/2021
 
Karamba Security Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
1,083,402

 
968,528

 
968,528

 
12/1/2021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

11



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%
 
 
 
774,598

 
760,458

 
760,458

 
6/1/2022
 
Nok Nok Labs, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
212,231

 
202,852

 
202,852

 
12/1/2020
 
Nok Nok Labs, Inc. Subtotal
 
 
 
 
 
 
 
 
 
986,829

 
963,310

 
963,310

 
 
 
Safetrust Holdings, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
266,432

 
252,465

 
252,465

 
6/1/2021
Security Total
 
 
1.2%
 
 
 
 
 
 
 
$
2,651,013

 
$
2,490,172

 
$
2,490,172

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Semiconductors & Equipment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ETA Compute, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
$
45,885

 
$
45,761

 
$
45,761

 
8/1/2020
 
ETA Compute, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,037,709

 
1,007,149

 
1,007,149

 
11/1/2021
 
ETA Compute, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,083,594

 
1,052,910

 
1,052,910

 
 
 
Innophase, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,593,032

 
1,577,041

 
1,577,041

 
6/1/2021
 
Innophase, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
3,714,909

 
3,639,255

 
3,639,255

 
6/1/2021
 
Innophase, Inc. Subtotal
 
 
 
 
 
 
 
 
 
5,307,941

 
5,216,296

 
5,216,296

 
 
Semiconductors & Equipment Total
 
3.1%
 
 
 
 
 
 
 
$
6,391,535

 
$
6,269,206

 
$
6,269,206

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alkanza Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
$
332,684

 
$
235,479

 
$
69,646

 
*
 
Aptible, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
91,403

 
90,431

 
90,431

 
2/1/2021
 
ArborMetrix, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,483,636

 
1,401,236

 
1,401,236

 
6/1/2023
 
ArborMetrix, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
2,910,065

 
2,815,800

 
2,815,800

 
6/1/2022
 
ArborMetrix, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
831,812

 
831,812

 
831,812

 
6/1/2022
 
ArborMetrix, Inc. Subtotal
 
 
 
 
 
 
 
 
 
5,225,513

 
5,048,848

 
5,048,848

 
 
 
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

 
 
 
Bloomboard, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
2,498,239

 
1,651,360

 
627,219

 
*
 
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
 
Cloudleaf, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
579,456

 
562,548

 
562,548

 
9/1/2021
 
Cloudleaf, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,063,964

 
1,922,920

 
1,922,920

 
 
 
DealPath, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
777,338

 
767,387

 
767,387

 
5/1/2021
 
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
 
Estify, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
842,819

 
810,625

 
227,410

 
*
 
Fortress IQ, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
443,109

 
430,685

 
430,685

 
11/1/2021
 
Gearbox Software, LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
1,072,354

 
1,068,685

 
1,068,685

 
3/1/2021
 
Gearbox Software, LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
582,445

 
580,837

 
580,837

 
11/1/2020
 
Gearbox Software, LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
660,846

 
648,797

 
648,797

 
9/1/2020
 
Gearbox Software, LLC Subtotal
 
 
 
 
 
 
 
 
 
2,315,645

 
2,298,319

 
2,298,319

 
 
 
GoFormz, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
566,875

 
548,180

 
548,180

 
11/1/2020
 
ICX Media, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
247,385

 
241,356

 
241,356

 
5/1/2023
 
ICX Media, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
437,048

 
409,004

 
409,004

 
5/1/2022
 
ICX Media, Inc. Subtotal
 
 
 
 
 
 
 
 
 
684,433

 
650,360

 
650,360

 
 
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,059

 
975,431

 
975,431

 
11/1/2022
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,486

 
973,337

 
973,337

 
3/1/2023
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,779

 
943,482

 
943,482

 
6/1/2023
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
931,701

 
920,553

 
920,553

 
7/1/2022
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
813,948

 
739,479

 
739,479

 
3/1/2022
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
642,598

 
642,598

 
642,598

 
4/1/2021
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
749,638

 
749,638

 
749,638

 
4/1/2021
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
988,333

 
754,275

 
754,275

 
3/1/2024
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
749,578

 
738,544

 
738,544

 
4/1/2021
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
112,544

 
111,311

 
111,311

 
6/1/2020
 
Invoice2Go, Inc. Subtotal
 
 
 
 
 
 
 
 
 
7,956,664

 
7,548,648

 
7,548,648

 
 

12



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
(b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
Ipolipo, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,101,963

 
1,999,077

 
1,376,718

 
6/1/2022
 
Loft, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
434,131

 
421,079

 
421,079

 
9/1/2021
 
Lucideus, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
494,836

 
453,776

 
453,776

 
2/1/2023
 
Medable, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,590

 
970,771

 
970,771

 
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

 
2,803,203

 
2,803,203

 
 
 
Metarail, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
648,564

 
629,686

 
189,727

 
6/1/2022
 
Metawave Corporation
 
 
 
Senior Secured
 
12.0%
 
 
 
859,320

 
833,192

 
833,192

 
7/1/2022
 
Migo Money, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
74,832

 
74,010

 
74,010

 
7/1/2020
 
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
 
 
 
 
 
 
 
 
 
1,024,592

 
995,280

 
995,280

 
 
 
OrderGroove, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,236,449

 
1,216,208

 
1,216,208

 
6/1/2023
 
OrderGroove, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,236,732

 
1,214,728

 
1,214,728

 
6/1/2023
 
OrderGroove, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,471,253

 
2,364,151

 
2,364,151

 
6/1/2023
 
OrderGroove, Inc. Subtotal
 
 
 
 
 
 
 
 
 
4,944,434

 
4,795,087

 
4,795,087

 
 
 
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

 
 
 
PrivCo Holdings, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
198,771

 
193,690

 
103,550

 
2/1/2021
 
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
 
12.3%
 
 
 
677,397

 
666,501

 
460,277

 
6/1/2022
 
Stitch Labs, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,175,990

 
1,115,165

 
770,117

 
2/1/2022
 
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

 
207,466

 
207,466

 
8/1/2022
 
Swivel, Inc. Subtotal
 
 
 
 
 
 
 
 
 
455,960

 
441,970

 
441,970

 
 
 
Swrve, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
537,005

 
530,749

 
530,749

 
11/1/2020
 
The/Studio Technologies, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
83,736

 
82,793

 
82,793

 
6/1/2020
 
Trendalytics Innovation Labs, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
270,942

 
246,498

 
201,378

 
6/1/2022
 
Truthset, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
371,627

 
371,627

 
371,627

 
5/1/2023
 
Truthset, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
371,541

 
340,997

 
340,997

 
2/1/2023
 
Truthset, Inc. Subtotal
 
 
 
 
 
 
 
 
 
743,168

 
712,624

 
712,624

 
 
 
VenueNext, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
1,961,550

 
1,883,633

 
1,696,493

 
*
 
Venuetize, LLC
 
 
 
Senior Secured
 
12.3%
 
 
 
194,670

 
179,119

 
179,119

 
4/1/2022
 
Vuemix, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
72,949

 
71,949

 
71,949

 
11/1/2020
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
471,495

 
447,745

 
447,745

 
9/1/2021
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
720,715

 
671,769

 
671,769

 
8/1/2022
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
84,580

 
83,475

 
83,475

 
6/1/2020
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
246,339

 
244,370

 
244,370

 
12/1/2020
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
742,126

 
724,043

 
724,043

 
10/1/2022
 
Workspot, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,265,255

 
2,171,402

 
2,171,402

 
 
 
Xeeva, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
371,088

 
370,180

 
370,180

 
7/1/2020
Software Total
 
 
25.2%
 
 
 
 
 
 
 
$
57,718,791

 
$
53,994,120

 
$
50,247,545

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Technology Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AirHelp, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
$
92,537

 
$
92,105

 
$
92,105

 
5/1/2020
 
AirHelp, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
91,786

 
91,550

 
91,550

 
7/1/2020
 
AirHelp, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
158,889

 
158,197

 
158,197

 
10/1/2020
 
AirHelp, Inc. Subtotal
 
 
 
 
 
 
 
 
 
343,212

 
341,852

 
341,852

 
 

13



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
(b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
Akademos, Inc.
 
 
 
Junior Secured
 
13.5%
 
1.5%
 
202,608

 
196,553

 
196,553

 
8/1/2020
 
Blazent, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,554,190

 
1,130,110

 
435,702

 
*
 
Blue Technologies Limited ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
18,753

 
18,704

 
18,704

 
4/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
347,101

 
346,350

 
346,350

 
9/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
439,311

 
438,179

 
438,179

 
6/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
514,237

 
512,653

 
512,653

 
12/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
677,238

 
674,529

 
674,529

 
3/1/2021
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,970,469

 
2,862,589

 
2,862,589

 
12/1/2021
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,972,598

 
2,924,981

 
2,924,981

 
9/1/2022
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.3%
 
 
 
2,478,241

 
2,190,696

 
2,190,696

 
6/1/2023
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,478,473

 
2,428,152

 
2,428,152

 
9/1/2023
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,971,928

 
2,934,734

 
2,934,734

 
6/1/2022
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,971,205

 
2,939,673

 
2,939,673

 
3/1/2022
 
Callisto Media, Inc. Subtotal
 
 
 
 
 
 
 
 
 
18,820,801

 
18,252,536

 
18,252,536

 
 
 
CloudIQ Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
465,193

 
465,194

 
413,367

 
4/1/2021
 
CloudIQ Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
363,129

 
363,129

 
322,672

 
1/1/2021
 
CloudIQ Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
328,398

 
315,513

 
280,361

 
12/1/2020
 
CloudIQ Ltd. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,156,720

 
1,143,836

 
1,016,400

 
 
 
Dolly, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
591,692

 
581,023

 
581,023

 
5/1/2021
 
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
 
Liftit, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
494,633

 
485,823

 
485,823

 
10/1/2022
 
Liftit, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
480,317

 
448,866

 
448,866

 
8/1/2022
 
Liftit, 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
 
PayJoy, Inc. **
 
 
 
Senior Secured
 
10.0%
 
 
 
591,576

 
575,538

 
575,538

 
8/1/2021
 
Relimetrics, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
282,148

 
272,064

 
272,064

 
1/1/2022
 
Riffyn, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
430,233

 
421,411

 
421,411

 
3/1/2021
 
Riffyn, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
265,158

 
262,531

 
262,531

 
6/1/2021
 
Riffyn, Inc. Subtotal
 
 
 
 
 
 
 
 
 
695,391

 
683,942

 
683,942

 
 
 
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
 
TrueFacet, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
871,610

 
839,387

 
23,263

 
*
 
Zeel Networks, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
2,531,182

 
2,423,460

 
2,156,953

 
3/1/2022
Technology Services Total
 
 
16.7%
 
 
 
 
 
 
 
$
36,911,247

 
$
35,249,218

 
$
33,344,743

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
 
 
Nextivity, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,506,961

 
2,506,849

 
2,506,849

 
6/1/2021
 
Nextivity, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
683,871

 
683,871

 
683,871

 
6/1/2021
 
Nextivity, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,190,832

 
3,190,720

 
3,190,720

 
 
 
Parallel Wireless, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
132,587

 
132,291

 
132,291

 
4/1/2020
 
Parallel Wireless, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
3,218,054

 
3,145,690

 
3,145,690

 
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.
 
 
 
Senior Secured
 
11.8%
 
 
 
386,326

 
384,916

 
384,916

 
10/1/2020
 
Parallel Wireless, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
3,217,115

 
3,144,307

 
3,144,307

 
9/1/2023
 
Parallel Wireless, Inc. Subtotal
 
 
 
 
 
 
 
 
 
13,388,820

 
12,854,756

 
12,854,756

 
 
Wireless Total
 
 
8.1%
 
 
 
 
 
 
 
$
16,823,490

 
$
16,279,008

 
$
16,279,008

 
 
Grand Total
 
 
182.2%
 
 
 
 
 
 
 
$
405,080,361

 
$
384,474,328

 
$
363,541,670

 
 


14



* As of March 31, 2020, loans with a cost basis of $21.0 million and a fair value of $13.5 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 interest income has been recognized.

** Indicates assets that the Fund deems “non-qualifying assets.” As of March 31, 2020, 11.1% 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.

15



VENTURE LENDING & LEASING VIII, 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

 
1,457,222

 
1,457,222

 
12/1/2022
 
Antheia, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,968,673

 
2,865,443

 
2,865,443

 
 
 
Orpheus Therapeutics, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
178,510

 
174,288

 

 
*
 
Quartzy, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
742,489

 
624,980

 
624,980

 
8/1/2023
Biotechnology Total
 
 
1.7
%
 
 
 
 
 
 
 
$
3,889,672

 
$
3,664,711

 
$
3,490,423

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Computers & Storage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canary Connect, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
$
577,487

 
$
509,119

 
$
509,119

 
12/1/2020
 
Canary Connect, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
2,472,801

 
2,370,284

 
2,370,284

 
3/1/2023
 
Canary Connect, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,050,288

 
2,879,403

 
2,879,403

 
 
 
Rigetti & Co., Inc.
 
 
 
Senior Secured
 
9.0%
 
2.8%
 
194,537

 
194,122

 
194,122

 
1/1/2020
Computers & Storage Total
 
 
1.5
%
 
 
 
 
 
 
 
$
3,244,825

 
$
3,073,525

 
$
3,073,525

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enterprise Networking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SnapRoute, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
$
2,556,019

 
$
112,500

 
$
112,500

 
*
Enterprise Networking Total
 
%
 
 
 
 
 
 
 
$
2,556,019

 
$
112,500

 
$
112,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Internet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ainsly, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
$
247,301

 
$
247,301

 
$
247,301

 
8/1/2022
 
Ainsly, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
741,853

 
677,056

 
677,056

 
8/1/2022
 
Ainsly, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
989,154

 
924,357

 
924,357

 
 
 
Amino Payments, Inc.
 
 
 
Senior Secured
 
10.8%
 
 
 
981,305

 
921,304

 
921,304

 
3/1/2022
 
Bombfell, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
656,522

 
647,811

 
647,811

 
10/1/2021
 
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

 
 
 
Clearsurance, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
720,282

 
711,977

 
711,977

 
9/1/2021
 
Clearsurance, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
526,436

 
512,822

 
512,822

 
3/1/2021
 
Clearsurance, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,246,718

 
1,224,799

 
1,224,799

 
 
 
Daily Muse, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
2,086,312

 
2,065,303

 
2,065,303

 
12/1/2021
 
Daily Muse, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
2,085,902

 
2,019,749

 
2,019,749

 
12/1/2021
 
Daily Muse, Inc. Subtotal
 
 
 
 
 
 
 
 
 
4,172,214

 
4,085,052

 
4,085,052

 
 
 
FindShadow, PBC
 
 
 
Senior Secured
 
11.5%
 
 
 
582,658

 
552,638

 
552,638

 
4/1/2022
 
FLYR, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
1,082,930

 
1,014,161

 
1,014,161

 
9/1/2021
 
FLYR, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
2,110,021

 
2,075,718

 
2,075,718

 
1/1/2022
 
FLYR, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,192,951

 
3,089,879

 
3,089,879

 
 
 
iZENEtech, Inc. ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
2,269,997

 
2,207,408

 
2,207,408

 
1/1/2021
 
iZENEtech, Inc. ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
3,073,836

 
3,037,773

 
3,037,773

 
6/1/2021
 
iZENEtech, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
5,343,833

 
5,245,181

 
5,245,181

 
 
 
Lenddo International ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
930,483

 
900,030

 
900,030

 
1/1/2021
 
Linden Research Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,472,688

 
2,376,994

 
2,376,994

 
6/1/2022
 
Linden Research Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,474,661

 
2,474,661

 
2,474,661

 
6/1/2022
 
Linden Research Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
902,820

 
888,448

 
888,448

 
3/1/2022
 
Linden Research Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
4,324,395

 
4,151,813

 
4,151,813

 
9/1/2021
 
Linden Research Inc. Subtotal
 
 
 
 
 
 
 
 
 
10,174,564

 
9,891,916

 
9,891,916

 
 
 
Lukla, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
494,770

 
411,213

 
411,213

 
12/1/2022

16



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
 (b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
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%
 
 
 
4,949,181

 
4,687,371

 
4,687,371

 
12/1/2022
 
MyPizza Technologies, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
2,474,878

 
2,419,067

 
2,419,067

 
2/1/2023
 
MyPizza Technologies, Inc. Subtotal
 
 
 
 
 
 
 
 
 
7,424,059

 
7,106,438

 
7,106,438

 
 
 
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
 
Relay Network, LLC
 
 
 
Senior Secured
 
8.0%
 
4.4%
 
355,319

 
350,310

 
350,310

 
9/1/2020
 
Relay Network, LLC
 
 
 
Senior Secured
 
8.0%
 
4.4%
 
355,349

 
353,403

 
353,403

 
9/1/2020
 
Relay Network, LLC Subtotal
 
 
 
 
 
 
 
 
 
710,668

 
703,713

 
703,713

 
 
 
Serface Care, Inc.
 
 
 
Senior Secured
 
12.3%
 
 
 
218,620

 
213,640

 
161,632

 
2/1/2022
 
Serface Care, Inc.
 
 
 
Senior Secured
 
12.3%
 
 
 
655,700

 
617,093

 
466,871

 
2/1/2022
 
Serface Care, Inc. Subtotal
 
 
 
 
 
 
 
 
 
874,320

 
830,733

 
628,503

 
 
 
Spot.IM, Ltd. ** ^
 
 
 
Senior Secured
 
11.8%
 
 
 
46,419

 
45,732

 
45,732

 
5/1/2020
 
Spot.IM, Ltd. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
46,752

 
46,415

 
46,415

 
5/1/2020
 
Spot.IM, Ltd. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
93,171

 
92,147

 
92,147

 
 
 
SpotOn Computing, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
1,893,528

 
1,853,788

 
944,730

 
*
 
Stay Alfred, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
5,249,888

 
5,109,248

 
5,109,248

 
12/1/2021
 
Stay Alfred, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
4,948,899

 
4,567,733

 
4,567,733

 
7/1/2023
 
Stay Alfred, Inc. Subtotal
 
 
 
 
 
 
 
 
 
10,198,787

 
9,676,981

 
9,676,981

 
 
 
Tango Card, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
595,825

 
591,279

 
591,279

 
11/1/2020
 
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
 
 
31.3
%
 
 
 
 
 
 
 
$
69,398,483

 
$
65,807,507

 
$
64,696,219

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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%
 
 
 
469,059

 
461,375

 
461,375

 
7/1/2022
 
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. 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%
 
 
 
2,969,338

 
2,893,992

 
2,893,992

 
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%
 
 
 
3,462,834

 
3,402,907

 
3,402,907

 
4/1/2023
 
NeuMoDx Molecular, Inc. Subtotal
 
 
 
 
 
 
 
 
 
9,891,554

 
9,543,967

 
9,543,967

 
 
 
RadiAction Ltd. ** ^
 
 
 
Senior Secured
 
11.5%
 
 
 
752,784

 
722,644

 
722,644

 
10/1/2021
 
RadiAction Ltd. ** ^
 
 
 
Senior Secured
 
11.5%
 
 
 
932,119

 
917,074

 
917,074

 
4/1/2022
 
RadiAction Ltd. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,684,903

 
1,639,718

 
1,639,718

 
 
 
Renovia, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
7,221,453

 
7,130,316

 
7,130,316

 
3/1/2022
 
Renovia, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
1,250,163

 
1,173,718

 
1,173,718

 
6/1/2021
 
Renovia, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
394,841

 
392,580

 
392,580

 
11/1/2020
 
Renovia, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
220,276

 
217,530

 
217,530

 
6/1/2020
 
Renovia, Inc. Subtotal
 
 
 
 
 
 
 
 
 
9,086,733

 
8,914,144

 
8,914,144

 
 
Medical Devices Total
 
 
15.9
%
 
 
 
 
 
 
 
$
34,826,822

 
$
32,882,569

 
$
32,882,569

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

17



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
 (b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
Other Healthcare
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4G Clinical LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
$
255,880

 
$
252,650

 
$
252,650

 
7/1/2020
 
Caredox, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
941,631

 
909,177

 
909,177

 
10/1/2021
 
Clover Health Investments Corporation
 
 
 
Senior Secured
 
11.3%
 
 
 
9,417,408

 
9,417,408

 
9,417,408

 
10/1/2022
 
Clover Health Investments Corporation
 
 
 
Senior Secured
 
11.0%
 
 
 
14,722,192

 
14,722,192

 
14,722,192

 
3/1/2022
 
Clover Health Investments Corporation Subtotal
 
 
 
 
 
 
 
 
 
24,139,600

 
24,139,600

 
24,139,600

 
 
 
Discover Echo, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
321,838

 
310,782

 
310,782

 
12/1/2020
 
Emerald Cloud Lab, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,989,609

 
1,845,817

 
1,845,817

 
12/1/2021
 
GoForward, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
6,188,651

 
5,511,946

 
5,511,946

 
9/1/2023
 
Hello Heart Inc.
 
 
 
Senior Secured
 
10.8%
 
 
 
657,496

 
634,941

 
634,941

 
7/1/2021
 
Hello Heart Inc.
 
 
 
Senior Secured
 
10.8%
 
 
 
1,127,717

 
1,112,932

 
1,112,932

 
10/1/2021
 
Hello Heart Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,238,420

 
1,152,819

 
1,152,819

 
4/1/2023
 
Hello Heart Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,023,633

 
2,900,692

 
2,900,692

 
 
 
HumanAPI, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,484,721

 
1,392,560

 
1,392,560

 
10/1/2022
 
HumanAPI, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
495,054

 
485,090

 
485,090

 
1/1/2023
 
HumanAPI, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,979,775

 
1,877,650

 
1,877,650

 
 
 
MD Revolution, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
139,624

 
138,801

 
138,801

 
3/1/2020
 
mPharma Data, Inc. ** ^
 
 
 
Senior Secured
 
10.0%
 
 
 
135,340

 
133,045

 
133,045

 
11/1/2020
 
mPharma Data, Inc. ** ^
 
 
 
Senior Secured
 
10.0%
 
 
 
181,549

 
180,264

 
180,264

 
3/1/2021
 
mPharma Data, Inc. ** ^
 
 
 
Senior Secured
 
10.0%
 
 
 
2,156,367

 
2,111,258

 
2,111,258

 
11/1/2021
 
mPharma Data, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
2,473,256

 
2,424,567

 
2,424,567

 
 
 
Myolex, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
762,531

 
726,537

 
238,967

 
*
 
Naked Biome, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
651,850

 
635,826

 
453,520

 
3/1/2021
 
Robin Care, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
816,636

 
777,359

 
777,359

 
7/1/2021
 
Sparta Software Corporation
 
 
 
Senior Secured
 
11.5%
 
2.2%
 
483,127

 
465,420

 
465,420

 
5/1/2022
 
Sparta Software Corporation
 
 
 
Senior Secured
 
10.0%
 
2.5%
 
42,282

 
41,691

 
41,691

 
6/1/2020
 
Sparta Software Corporation Subtotal
 
 
 
 
 
 
 
 
 
525,409

 
507,111

 
507,111

 
 
 
Therapydia, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
268,581

 
250,097

 
250,097

 
8/1/2022
 
Therapydia, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
296,807

 
290,255

 
290,255

 
12/1/2022
 
Therapydia, Inc.
 
 
 
Senior Secured
 
12.0%
 
1.7%
 
124,078

 
114,084

 
114,084

 
3/1/2023
 
Therapydia, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
296,837

 
289,983

 
289,983

 
1/1/2023
 
Therapydia, Inc.
 
 
 
Senior Secured
 
12.5%
 
1.7%
 
123,953

 
123,953

 
123,953

 
6/1/2023
 
Therapydia, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,110,256

 
1,068,372

 
1,068,372

 
 
 
Zillion Group, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
431,509

 
428,038

 
189,940

 
12/1/2020
 
Zillion Group, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
257,943

 
253,831

 
112,636

 
7/1/2020
 
Zillion Group, Inc. Subtotal
 
 
 
 
 
 
 
 
 
689,452

 
681,869

 
302,576

 
 
Other Healthcare Total
 
 
21.1
%
 
 
 
 
 
 
 
$
46,009,631

 
$
44,708,756

 
$
43,659,587

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Technology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8i Corporation
 
 
 
Senior Secured
 
11.8%
 
 
 
$
1,191,490

 
$
1,173,344

 
$
1,173,344

 
12/1/2020
 
Abiquo Group, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
330,055

 
316,725

 
316,725

 
7/1/2021
 
Aclima, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,487,792

 
2,434,107

 
2,434,107

 
*
 
Antitoxin Technologies Inc. ** ^
 
 
 
Senior Secured
 
11.5%
 
 
 
495,198

 
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

 
950,647

 
950,647

 
6/1/2022
 
Beanfields, PBC
 
 
 
Senior Secured
 
12.5%
 
 
 
865,388

 
811,782

 
811,782

 
3/1/2023
 
BloomLife, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
44,885

 
44,433

 
44,433

 
4/1/2020
 
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%
 
 
 
1,979,819

 
1,757,319

 
1,757,319

 
5/1/2023
 
BW Industries, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,979,730

 
1,927,230

 
1,927,230

 
6/1/2023
 
BW Industries, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,959,549

 
3,684,549

 
3,684,549

 
 

18



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
 (b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
Consumer Physics, Inc. ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
822,854

 
787,630

 
729,155

 
1/1/2022
 
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

 
4,743,973

 
4,743,973

 
6/1/2022
 
DOSH Holdings, Inc. Subtotal
 
 
 
 
 
 
 
 
 
6,187,478

 
5,962,926

 
5,962,926

 
 
 
Eguana Technologies, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
1,926,928

 
1,881,900

 
1,881,900

 
2/1/2022
 
ESM Group International , Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
445,808

 
417,698

 
417,698

 
12/1/2021
 
Fitplan, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
225,795

 
225,795

 
225,795

 
3/1/2022
 
Fitplan, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
677,222

 
647,498

 
647,498

 
3/1/2022
 
Fitplan, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
451,727

 
437,617

 
437,617

 
3/1/2022
 
Fitplan, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,354,744

 
1,310,910

 
1,310,910

 
 
 
Flo Water, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
64,052

 
62,946

 
62,946

 
5/1/2020
 
Flo Water, Inc.
 
 
 
Senior Secured
 
11.4%
 
 
 
548,207

 
533,916

 
533,916

 
5/1/2021
 
Flo Water, Inc. Subtotal
 
 
 
 
 
 
 
 
 
612,259

 
596,862

 
596,862

 
 
 
Gap Year Global, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
90,768

 
86,359

 

 
*
 
Heartwork, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
379,462

 
371,981

 
73,494

 
*
 
Higher Ground Education, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
2,471,753

 
2,313,925

 
2,313,925

 
1/1/2023
 
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.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,483,595

 
1,450,927

 
1,450,927

 
4/1/2023
 
Higher Ground Education, Inc. Subtotal
 
 
 
 
 
 
 
 
 
4,944,664

 
4,730,359

 
4,730,359

 
 
 
Hint, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,321,439

 
1,277,918

 
1,277,918

 
3/1/2021
 
Hint, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,724,265

 
1,610,424

 
1,610,424

 
8/1/2021
 
Hint, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
1,644,377

 
1,644,377

 
1,644,377

 
7/1/2021
 
Hint, Inc. Subtotal
 
 
 
 
 
 
 
 
 
4,690,081

 
4,532,719

 
4,532,719

 
 
 
June Life, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
129,682

 
128,895

 
128,895

 
3/1/2020
 
June Life, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
129,691

 
129,319

 
129,319

 
3/1/2020
 
June Life, Inc. Subtotal
 
 
 
 
 
 
 
 
 
259,373

 
258,214

 
258,214

 
 
 
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
 
LanzaTech New Zealand Ltd.
 
 
 
Senior Secured
 
13.0%
 
 
 
355,735

 
351,225

 
351,225

 
3/1/2020
 
LanzaTech New Zealand Ltd.
 
 
 
Senior Secured
 
13.0%
 
 
 
1,033,301

 
1,027,200

 
1,027,200

 
9/1/2020
 
LanzaTech New Zealand Ltd.
 
 
 
Senior Secured
 
13.3%
 
 
 
1,336,381

 
1,328,045

 
1,328,045

 
3/1/2021
 
LanzaTech New Zealand Ltd. Subtotal
 
 
 
 
 
 
 
 
 
2,725,417

 
2,706,470

 
2,706,470

 
 
 
Make School, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
690,328

 
667,484

 
667,484

 
8/1/2021
 
Neuehouse, LLC
 
 
 
Senior Secured
 
12.0%
 
 
 
1,750,000

 
1,297,265

 
1,297,265

 
*
 
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
 
Northern Quinoa Production Corporation ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
6,904,047

 
6,577,787

 
6,577,787

 
5/1/2022
 
Noteleaf, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
489,249

 
485,228

 
485,228

 
9/1/2020
 
Noteleaf, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,483,247

 
1,404,471

 
1,404,471

 
4/1/2023
 
Noteleaf, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,972,496

 
1,889,699

 
1,889,699

 
 
 
Opya, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,594

 
936,064

 
936,064

 
1/1/2023
 
Opya, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
260,121

 
251,996

 
251,996

 
4/1/2021
 
Opya, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,249,715

 
1,188,060

 
1,188,060

 
 
 
PDQ Enterprises LLC **
 
 
 
Senior Secured
 
11.0%
 
 
 
1,597,950

 
1,583,889

 
1,583,890

 
2/1/2021
 
Percepto Robotics, Ltd. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
220,862

 
217,253

 
217,253

 
8/1/2020
 
Percepto Robotics, Ltd. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
129,824

 
128,631

 
128,631

 
12/1/2020
 
Percepto Robotics, Ltd. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
350,686

 
345,884

 
345,884

 
 
 
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
 
PLAE, Inc.
 
 
 
Senior Secured
 
9.0%
 
3.2%
 
621,378

 
613,950

 
365,026

 
12/1/2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

19



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
 (b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
Plant Prefab, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
436,815

 
429,152

 
429,152

 
2/1/2022
 
Plant Prefab, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
436,736

 
408,403

 
408,403

 
2/1/2022
 
Plant Prefab, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
495,230

 
485,444

 
485,444

 
8/1/2022
 
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
 
Plenty Unlimited, Inc.
 
 
 
Senior Secured
 
9.0%
 
9.4%
 
720,381

 
715,351

 
715,351

 
3/1/2021
 
Plenty Unlimited, Inc.
 
 
 
Senior Secured
 
9.0%
 
11.7%
 
669,055

 
657,374

 
657,374

 
1/1/2021
 
Plenty Unlimited, Inc.
 
 
 
Senior Secured
 
9.0%
 
11.7%
 
2,129,724

 
2,074,807

 
2,074,807

 
9/1/2021
 
Plenty Unlimited, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,519,160

 
3,447,532

 
3,447,532

 
 
 
Plethora, Inc.
 
 
 
Senior Secured
 
11.2%
 
 
 
2,666,486

 
2,426,198

 
2,426,198

 
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
 
12.3%
 
3.6%
 
2,984,037

 
2,923,783

 
2,923,783

 
2/1/2023
 
Romaine Empire, Inc.
 
 
 
Senior Secured
 
11.0%
 
4.1%
 
2,989,549

 
2,821,203

 
2,821,203

 
2/1/2023
 
Romaine Empire, Inc. Subtotal
 
 
 
 
 
 
 
 
 
5,973,586

 
5,744,986

 
5,744,986

 
 
 
Saber es Poder, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
240,399

 
241,229

 
241,229

 
5/1/2022
 
Saber es Poder, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
451,402

 
431,977

 
431,977

 
3/1/2022
 
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
 
10.5%
 
 
 
179,654

 
178,576

 
178,576

 
10/1/2020
 
SkyKick, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
196,798

 
195,475

 
195,475

 
11/1/2020
 
SkyKick, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
329,036

 
325,320

 
325,320

 
6/1/2020
 
SkyKick, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
4,949,290

 
4,766,396

 
4,766,396

 
6/1/2022
 
SkyKick, Inc. Subtotal
 
 
 
 
 
 
 
 
 
5,654,778

 
5,465,767

 
5,465,767

 
 
 
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
 
TAE Technologies, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
5,320,565

 
5,205,605

 
5,205,605

 
3/1/2021
 
TAE Technologies, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,411,739

 
1,397,787

 
1,397,787

 
4/1/2021
 
TAE Technologies, Inc. Subtotal
 
 
 
 
 
 
 
 
 
6,732,304

 
6,603,392

 
6,603,392

 
 
 
Terramera, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
520,302

 
514,091

 
514,091

 
4/1/2021
 
Terramera, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
1,040,372

 
1,001,921

 
1,001,921

 
4/1/2021
 
Terramera, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,560,674

 
1,516,012

 
1,516,012

 
 
 
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%
 
47.3%
 
457,896

 
457,896

 
457,896

 
7/1/2024
 
Thras.io, Inc.
 
 
 
Senior Secured
 
12.0%
 
47.4%
 
281,514

 
250,101

 
250,101

 
4/1/2024
 
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%
 
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%
 
185,880

 
185,880

 
185,880

 
5/1/2024
 
Thras.io, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,848,491

 
1,817,078

 
1,817,078

 
 
 
UniEnergy Technologies LLC
 
 
 
Senior Secured
 
12.3%
 
 
 
2,622,584

 
2,355,691

 
1,933,768

 
12/1/2020
 
Veev Group, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
814,961

 
785,872

 
785,872

 
12/1/2021
 
Velo Holdings Limited
 
 
 
Senior Secured
 
12.0%
 
 
 
2,473,359

 
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
 
Virtuix Holdings, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
191,811

 
189,767

 
189,767

 
7/1/2020
 
Virtuix Holdings, Inc. Subtotal
 
 
 
 
 
 
 
 
 
424,722

 
418,028

 
418,028

 
 
 
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
 
 
52.3
%
 
 
 
 
 
 
 
$
114,889,061

 
$
109,202,901

 
$
108,088,734

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Security
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Axonius, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
$
361,483

 
$
350,280

 
$
350,280

 
9/1/2021
 
Karamba Security Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
1,220,509

 
1,075,646

 
1,075,646

 
12/1/2021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

20



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
 
Nok Nok Labs, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
278,668

 
262,884

 
262,884

 
12/1/2020
 
Nok Nok Labs, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,126,705

 
1,093,898

 
1,093,898

 
 
 
Safetrust Holdings, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
314,927

 
295,554

 
295,554

 
6/1/2021
Security Total
 
 
1.4
%
 
 
 
 
 
 
 
$
3,023,624

 
$
2,815,378

 
$
2,815,378

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Semiconductors & Equipment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ETA Compute, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
$
1,176,312

 
$
1,137,034

 
$
1,137,034

 
11/1/2021
 
ETA Compute, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
72,471

 
72,179

 
72,179

 
8/1/2020
 
ETA Compute, Inc. Subtotal
 
 
 
 
 
 
 
 
 
1,248,783

 
1,209,213

 
1,209,213

 
 
 
Innophase, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
1,884,639

 
1,862,313

 
1,862,313

 
6/1/2021
 
Innophase, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
4,394,928

 
4,289,442

 
4,289,442

 
6/1/2021
 
Innophase, Inc. Subtotal
 
 
 
 
 
 
 
 
 
6,279,567

 
6,151,755

 
6,151,755

 
 
Semiconductors & Equipment Total
 
3.6
%
 
 
 
 
 
 
 
$
7,528,350

 
$
7,360,968

 
$
7,360,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alkanza Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
$
677,531

 
$
317,479

 
$
160,154

 
*
 
Aptible, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
114,677

 
113,163

 
113,163

 
2/1/2021
 
ArborMetrix, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
1,484,138

 
1,392,854

 
1,392,854

 
6/1/2023
 
ArborMetrix, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
911,698

 
911,697

 
911,698

 
6/1/2022
 
ArborMetrix, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
3,189,498

 
3,075,942

 
3,075,942

 
6/1/2022
 
ArborMetrix, Inc. Subtotal
 
 
 
 
 
 
 
 
 
5,585,334

 
5,380,493

 
5,380,494

 
 
 
Blockdaemon, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
247,542

 
238,275

 
238,275

 
6/1/2022
 
Blockdaemon, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
172,574

 
160,081

 
160,081

 
8/1/2021
 
Blockdaemon, Inc. Subtotal
 
 
 
 
 
 
 
 
 
420,116

 
398,356

 
398,356

 
 
 
Bloomboard, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
2,501,330

 
1,726,360

 
1,609,258

 
*
 
BlueCart, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
17,613

 
17,561

 
17,561

 
1/1/2020
 
BlueCart, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
8,832

 
8,821

 
8,821

 
1/1/2020
 
BlueCart, Inc. Subtotal
 
 
 
 
 
 
 
 
 
26,445

 
26,382

 
26,382

 
 
 
Canary Technologies Corp.
 
 
 
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%
 
 
 
666,338

 
644,009

 
644,009

 
9/1/2021
 
Cloudleaf, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,484,964

 
1,348,759

 
1,348,759

 
8/1/2023
 
Cloudleaf, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,151,302

 
1,992,768

 
1,992,768

 
 
 
DealPath, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
931,379

 
917,163

 
917,163

 
5/1/2021
 
DemystData Limited
 
 
 
Senior Secured
 
11.8%
 
 
 
128,725

 
128,085

 
128,085

 
7/1/2020
 
DemystData Limited
 
 
 
Senior Secured
 
11.8%
 
 
 
185,689

 
182,801

 
182,801

 
5/1/2020
 
DemystData Limited Subtotal
 
 
 
 
 
 
 
 
 
314,414

 
310,886

 
310,886

 
 
 
Drift Marketplace, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
21,052

 
21,008

 
21,008

 
3/1/2020
 
Drift Marketplace, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
27,932

 
27,877

 
27,877

 
3/1/2020
 
Drift Marketplace, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
20,949

 
20,782

 
20,782

 
3/1/2020
 
Drift Marketplace, Inc. Subtotal
 
 
 
 
 
 
 
 
 
69,933

 
69,667

 
69,667

 
 
 
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
 
Estify, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
842,819

 
818,731

 
261,969

 
*
 
Fortress IQ, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
502,728

 
486,738

 
486,738

 
11/1/2021
 
Gearbox Software, LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
790,132

 
787,238

 
787,238

 
11/1/2020
 
Gearbox Software, LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
977,945

 
952,724

 
952,724

 
9/1/2020
 
Gearbox Software, LLC
 
 
 
Senior Secured
 
11.0%
 
 
 
1,322,592

 
1,317,050

 
1,317,050

 
3/1/2021
 
Gearbox Software, LLC Subtotal
 
 
 
 
 
 
 
 
 
3,090,669

 
3,057,012

 
3,057,012

 
 
 
GoFormz, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
716,482

 
683,705

 
683,705

 
11/1/2020
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

21



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
 (b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
909,506

 
909,506

 
909,506

 
4/1/2021
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
909,416

 
893,275

 
893,275

 
4/1/2021
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,381

 
973,707

 
973,707

 
11/1/2022
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
988,333

 
938,608

 
938,608

 
6/1/2023
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
221,827

 
217,619

 
217,619

 
6/1/2020
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
779,652

 
779,652

 
779,652

 
4/1/2021
 
Invoice2Go, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
989,796

 
971,709

 
971,709

 
3/1/2023
 
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. Subtotal
 
 
 
 
 
 
 
 
 
7,679,555

 
7,471,062

 
7,471,062

 
 
 
Ipolipo, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,181,071

 
2,058,286

 
2,058,286

 
6/1/2022
 
JethroData, Inc. ** ^
 
 
 
Senior Secured
 
18.0%
 
 
 
704,868

 
681,877

 
327,328

 
*
 
Loft, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
499,368

 
482,126

 
482,126

 
9/1/2021
 
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

 
 
 
Metarail, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
672,294

 
649,249

 
285,595

 
6/1/2022
 
Metawave Corporation
 
 
 
Senior Secured
 
12.0%
 
 
 
937,979

 
906,739

 
906,739

 
7/1/2022
 
Migo Money, Inc. ** ^
 
 
 
Senior Secured
 
12.3%
 
 
 
610,858

 
574,762

 
574,762

 
12/1/2021
 
Migo Money, Inc. ** ^
 
 
 
Senior Secured
 
12.5%
 
 
 
451,529

 
451,529

 
451,529

 
3/1/2022
 
Migo Money, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
129,034

 
126,786

 
126,786

 
7/1/2020
 
Migo Money, Inc. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,191,421

 
1,153,077

 
1,153,077

 
 
 
OrderGroove, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,236,848

 
1,214,197

 
1,214,197

 
6/1/2023
 
OrderGroove, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,472,099

 
2,352,429

 
2,352,429

 
6/1/2023
 
OrderGroove, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,237,123

 
1,212,501

 
1,212,501

 
6/1/2023
 
OrderGroove, Inc. Subtotal
 
 
 
 
 
 
 
 
 
4,946,070

 
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

 
 
 
PrivCo Holdings, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
249,311

 
241,418

 
241,418

 
2/1/2021
 
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%
 
 
 
133,441

 
116,663

 
116,663

 
3/1/2021
 
Resilio, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
149,688

 
149,688

 
149,688

 
5/1/2021
 
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%
 
 
 
1,310,480

 
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
 
Stitch Labs, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,052,308

 
1,963,649

 
1,963,649

 
 
 
Swivel, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
240,927

 
224,342

 
224,342

 
8/1/2022
 
Swivel, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
247,319

 
247,319

 
247,319

 
10/1/2022
 
Swivel, Inc. Subtotal
 
 
 
 
 
 
 
 
 
488,246

 
471,661

 
471,661

 
 
 
Swrve, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
726,455

 
715,263

 
715,263

 
11/1/2020
 
Talla, Inc.
 
 
 
Senior Secured
 
12.5%
 
 
 
480,218

 
448,442

 
448,442

 
5/1/2022
 
The/Studio Technologies, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
165,210

 
161,987

 
161,987

 
6/1/2020
 
Trendalytics Innovation Labs, Inc.
 
 
 
Senior Secured
 
12.8%
 
 
 
296,547

 
267,283

 
267,283

 
6/1/2022
 
Truthset, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
371,630

 
337,302

 
337,302

 
2/1/2023
 
Truthset, Inc.
 
 
 
Senior Secured
 
10.5%
 
 
 
371,714

 
371,714

 
371,714

 
5/1/2023
 
Truthset, Inc. Subtotal
 
 
 
 
 
 
 
 
 
743,344

 
709,016

 
709,016

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

22



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
 (b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
VenueNext, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
276,785

 
272,729

 
272,729

 
5/1/2020
 
VenueNext, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
1,128,399

 
1,114,885

 
1,114,885

 
10/1/2021
 
VenueNext, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
987,863

 
983,492

 
983,492

 
7/1/2021
 
VenueNext, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,393,047

 
2,371,106

 
2,371,106

 
 
 
Venuetize, LLC
 
 
 
Senior Secured
 
12.3%
 
 
 
214,880

 
195,955

 
195,955

 
4/1/2022
 
Vuemix, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
98,925

 
97,130

 
97,130

 
11/1/2020
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
742,204

 
684,512

 
684,512

 
8/1/2022
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
742,358

 
721,400

 
721,400

 
10/1/2022
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
166,673

 
162,904

 
162,904

 
6/1/2020
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
542,190

 
510,896

 
510,896

 
9/1/2021
 
Workspot, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
323,670

 
320,329

 
320,329

 
12/1/2020
 
Workspot, Inc. Subtotal
 
 
 
 
 
 
 
 
 
2,517,095

 
2,400,041

 
2,400,041

 
 
 
Xeeva, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
636,722

 
634,250

 
634,250

 
7/1/2020
Software Total
 
 
29.6
%
 
 
 
 
 
 
 
$
67,522,364

 
$
63,201,753

 
$
61,107,983

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Technology Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AirHelp, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
$
224,210

 
$
222,872

 
$
222,872

 
10/1/2020
 
AirHelp, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
158,653

 
158,004

 
158,004

 
7/1/2020
 
AirHelp, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
228,495

 
226,378

 
226,378

 
5/1/2020
 
AirHelp, Inc. Subtotal
 
 
 
 
 
 
 
 
 
611,358

 
607,254

 
607,254

 
 
 
Akademos, Inc.
 
 
 
Junior Secured
 
13.5%
 
1.5%
 
310,059

 
296,533

 
296,533

 
8/1/2020
 
Blazent, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
1,554,190

 
1,176,871

 
519,570

 
*
 
Blue Technologies Limited ** ^
 
 
 
Senior Secured
 
11.0%
 
 
 
73,765

 
73,282

 
73,282

 
4/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
867,752

 
863,859

 
863,859

 
6/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,973,269

 
2,919,744

 
2,919,744

 
9/1/2022
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
514,237

 
512,656

 
512,656

 
9/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
677,238

 
674,538

 
674,538

 
12/1/2020
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
836,205

 
832,109

 
832,109

 
3/1/2021
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,971,195

 
2,839,762

 
2,839,762

 
12/1/2021
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,971,910

 
2,934,804

 
2,934,804

 
3/1/2022
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.3%
 
 
 
2,475,086

 
2,171,160

 
2,171,160

 
6/1/2023
 
Callisto Media, Inc.
 
 
 
Senior Secured
 
10.0%
 
 
 
2,972,615

 
2,929,981

 
2,929,981

 
6/1/2022
 
Callisto Media, Inc. Subtotal
 
 
 
 
 
 
 
 
 
17,259,507

 
16,678,613

 
16,678,613

 
 
 
CloudIQ Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
431,489

 
409,763

 
409,763

 
12/1/2020
 
CloudIQ Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
564,266

 
564,266

 
564,266

 
4/1/2021
 
CloudIQ Ltd. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
465,206

 
465,206

 
465,206

 
1/1/2021
 
CloudIQ Ltd. ** ^ Subtotal
 
 
 
 
 
 
 
 
 
1,460,961

 
1,439,235

 
1,439,235

 
 
 
Dolly, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
610,970

 
597,981

 
597,981

 
5/1/2021
 
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
 
Liftit, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
494,791

 
484,576

 
484,576

 
10/1/2022
 
Liftit, Inc. ** ^
 
 
 
Senior Secured
 
12.0%
 
 
 
494,641

 
457,564

 
457,564

 
8/1/2022
 
Liftit, 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
 
PayJoy, Inc. **
 
 
 
Senior Secured
 
10.0%
 
 
 
687,580

 
665,991

 
665,991

 
8/1/2021
 
Relimetrics, Inc.
 
 
 
Senior Secured
 
11.3%
 
 
 
316,328

 
303,649

 
303,649

 
1/1/2022
 
Riffyn, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
313,787

 
310,118

 
310,118

 
6/1/2021
 
Riffyn, Inc.
 
 
 
Senior Secured
 
11.5%
 
 
 
530,315

 
517,038

 
517,038

 
3/1/2021
 
Riffyn, Inc. Subtotal
 
 
 
 
 
 
 
 
 
844,102

 
827,156

 
827,156

 
 
 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

23



Industry
Borrower
 
Percent of Net Assets (a)
 
Collateral
 
Interest Rate
 (b)
 
End of Term Payment
(c)
 
Principal
 
Cost
 
Fair Value
 
Maturity Date
 
Thrive Financial, Inc. **
 
 
 
Senior Secured
 
11.5%
 
 
 
990,014

 
930,252

 
930,252

 
10/1/2022
 
TrueFacet, Inc.
 
 
 
Senior Secured
 
18.0%
 
 
 
946,610

 
893,580

 
4,969

 
*
 
Zeel Networks, Inc.
 
 
 
Senior Secured
 
11.0%
 
 
 
2,694,235

 
2,595,529

 
2,595,529

 
3/1/2022
Technology Services Total
 
 
16.3
%
 
 
 
 
 
 
 
$
36,965,658

 
$
35,215,970

 
$
33,670,058

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wireless
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AirVine Scientific, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
$
123,714

 
$
115,226

 
$
115,226

 
9/1/2022
 
Juvo Mobile, Inc. **
 
 
 
Senior Secured
 
11.0%
 
 
 
37,413

 
37,350

 
37,350

 
2/1/2020
 
Juvo Mobile, Inc. **
 
 
 
Senior Secured
 
11.0%
 
 
 
18,792

 
18,773

 
18,773

 
1/1/2020
 
Juvo Mobile, Inc. ** Subtotal
 
 
 
 
 
 
 
 
 
56,205

 
56,123

 
56,123

 
 
 
Nextivity, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
808,783

 
808,783

 
808,783

 
6/1/2021
 
Nextivity, Inc.
 
 
 
Senior Secured
 
12.0%
 
 
 
2,964,747

 
2,964,591

 
2,964,591

 
6/1/2021
 
Nextivity, Inc. Subtotal
 
 
 
 
 
 
 
 
 
3,773,530

 
3,773,374

 
3,773,374

 
 
 
Parallel Wireless, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
6,410,893

 
5,992,157

 
5,992,157

 
6/1/2023
 
Parallel Wireless, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
543,960

 
541,246

 
541,246

 
10/1/2020
 
Parallel Wireless, Inc.
 
 
 
Senior Secured
 
11.8%
 
 
 
522,646

 
519,754

 
519,754

 
4/1/2020
 
Parallel Wireless, Inc. Subtotal
 
 
 
 
 
 
 
 
 
7,477,499

 
7,053,157

 
7,053,157

 
 
Wireless Total
 
 
5.3
%
 
 
 
 
 
 
 
$
11,430,948

 
$
10,997,880

 
$
10,997,880

 
 
Grand Total
 
 
180.0
%
 
 
 
 
 
 
 
$
401,285,457

 
$
379,044,418

 
$
371,955,824

 
 

* As of December 31, 2019, loans with a cost basis of $15.5 million and a fair value of $10.3 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 interest income has been recognized.

** Indicates assets that the Fund deems “non-qualifying assets.” As of December 31, 2019, 10.2% 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 December 31, 2019, all loans were made to non-affiliates.




 
See notes to condensed financial statements.

24



VENTURE LENDING & LEASING VIII, INC.

CONDENSED SCHEDULES OF OPEN SWAP CONTRACTS (UNAUDITED)
AS OF MARCH 31, 2020 AND DECEMBER 31, 2019


 
 
 
 
 
 
AS OF MARCH 31, 2020
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 (a)
 
Notional Amount
 
Value
 
Upfront payments / receipts
 
Unrealized appreciation / (depreciation) (b)
Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly
 
Fixed interest rate 2.005%, to be paid monthly
 
MUFG Union Bank, N.A.
 
9/11/2020
 
$
90,000,000

 
$
(620,451
)
 
$

 
$
(620,451
)
Total
 
 
 
 
 
 
 
$
90,000,000

 
$
(620,451
)
 
$

 
$
(620,451
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AS OF 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 (a)
 
Notional Amount
 
Value
 
Upfront payments / receipts
 
Unrealized appreciation / (depreciation) (b)
Cancellable Interest Rate Swap - Floating interest rate USD-LIBOR-BBA
 
Fixed interest rate 2.200%, to be paid monthly
 
MUFG Union Bank, N.A.
 
9/11/2020
 
$
102,000,000

 
$
(120,233
)
 
$

 
$
(120,233
)
Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly
 
Fixed interest rate 2.005%, to be paid monthly
 
MUFG Union Bank, N.A.
 
9/11/2020
 
90,000,000

 
(226,950
)
 

 
(226,950
)
Total
 
 
 
 
 
 
 
$
192,000,000

 
$
(347,183
)
 
$

 
$
(347,183
)

(a) The cancellable interest rate swap includes an option for the Fund to terminate the swap early on March 31, 2020.
(b) The unrealized appreciation/depreciation was determined 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.

25



VENTURE LENDING & LEASING VIII, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
1.
ORGANIZATION AND OPERATIONS OF THE FUND
Venture Lending & Leasing VIII, Inc. (the “Fund”) was incorporated in Maryland on May 6, 2015 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 (“1940 Act”) and is managed by Westech Investment Advisors, LLC (the “Manager” or “Management”). The Fund will be dissolved on December 31, 2025 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 VIII, LLC (the “Company”). Prior to commencing its operations on August 12, 2015, the Fund had no operations other than the sale to the Company of 100,000 shares of common stock, $0.001 par value for $25,000 in July 2015. 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 August 20, 2015.

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 to conform to the 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 4,576,995 units in the Blackrock Treasury Trust Institutional Fund valued at $1 per unit at a yield of 0.20%, which represented 2.29% of the net assets of the Fund.

26



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 and losses 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 $363.5 million and $372.0 million, respectively, (or 97.3% and 95.4% of the 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 into 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 borrowers 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 Funds security interests in collateral, the estimated value of the Funds 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 Funds 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.

27



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, loans with a cost basis of $21.0 million and a fair value of $13.5 million were classified as non-accrual. As of December 31, 2019, loans with a cost basis of $15.5 million and a fair value of $10.3 million 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 was 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 warrants is one factor, of many, used in the valuation of warrants, and by itself does not have a significant impact on the result 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.

28



Other Assets and Liabilities
Other assets include costs incurred in conjunction with borrowings under the Funds 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 values 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 September 11, 2020. The amortization of these costs is recorded as Interest expense in the Condensed Statements of Operations.

Interest Rate Swap Agreement

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 (see Note 8). The Fund entered into two types of swap transactions under the agreement. The cancellable interest rate swap transaction was primarily valued on the basis of quotes obtained from banks, brokers and dealers and adjusted for counterparty risk and the optionality to terminate the swap early. The interest rate swap and floor transaction is valued on the basis of quotes obtained from banks, brokers and dealers and adjusted for the counterparty risk and the interest rate floor. The valuation of the interest rate swap and floor transaction also considers the future expected interest rates on the notional principal balances 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. A transaction 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 transaction 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 interest rate swap transaction, if any, is recorded in Net realized gain (loss) from derivative instruments in the Condensed Statements of Operations. The interest rate swap and floor transaction is contractually scheduled to terminate on September 11, 2020. The Fund utilized the cancellation option to terminate the cancellable interest rate swap early effective March 31, 2020.
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.

29



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 Funds 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 borrowers 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 performing loans was 17.73%, which was inclusive of both cash and non-cash interest income. For the three months ended March 31, 2020, the weighted-average interest rate on the cash portion of the interest income was 14.37%. For the three months ended March 31, 2019, the weighted-average interest rate on performing loans was 15.84%, which was inclusive of both cash and non-cash interest income. For the three months ended March 31, 2019, the weighted-average interest rate on the cash portion of the interest income was 12.66%.

For the three months ended March 31, 2020, the weighted-average interest rate on all loans was 17.23%, which was inclusive of both cash and non-cash interest income. For the three months ended March 31, 2020, the weighted-average interest on the cash portion of the interest income was 13.97%. For the three months ended March 31, 2019, the weighted-average interest rate on all loans was 15.60%, which was inclusive of both cash and non-cash interest income. For the three months ended March 31, 2019, the weighted-average interest on the cash portion of the interest income was 12.47%.

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 Funds 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 Funds 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.
    
    

30



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 investments in the interest rate swap are based on quotes from the market makers that derive fair values from market data, and therefore, are 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 were 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 or Ranges
 
 
 
 
 
 
 
 
 
Biotechnology
 
$
3,512,041

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
15% (14% - 21%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$0*
 
 
 
 
 
 
Discount Rate
 
0%
 
 
 
 
 
 
 
 
 
Computers and Storage
 
2,779,070
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
18%*
 
 
 
 
 
 
 
 
 
Internet
 
44,647,232
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
16% (13% - 31%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$6,571,065
($636,778 - $11,355,354)
 
 
 
 
 
 
Discount rate
 
2%
(2% - 3%)
 
 
 
 
 
 
 
 
 

31



Investment Type - Level 3
 
 
 
 
 
 
Debt Investments
 
Fair Values at
March 31, 2020
 
Valuation Techniques / Methodologies
 
Unobservable Inputs
 
Weighted Averages (a) / Amounts or Ranges
Medical Devices
 
35,676,979
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
14% (13% - 17%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$10,329,930*
 
 
 
 
 
 
Discount rate
 
2%
 
 
 
 
 
 
 
 
 
Other Healthcare
 
41,648,494
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
15% (12% - 19%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$812,697
($498,402 - $1,130,989)
 
 
 
 
 
 
Discount rate
 
2%
 
 
 
 
 
 
 
 
 
Other Technology
 
126,647,180
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
16% (12% - 35%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$5,354,919
($0 - $7,891,597)
 
 
 
 
 
 
Discount rate
 
2%
(0% - 3%)
 
 
 
 
 
 
 
 
 
Security
 
2,490,172
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
20% (16% - 25%)
 
 
 
 
 
 
 
 
 
Semiconductors and Equipment
 
6,269,206
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
15%
(14% - 15%)
 
 
 
 
 
 
 
 
 
Software
 
50,247,545
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
16% (13% - 26%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$2,007,293
($145,000 - $2,903,760)
 
 
 
 
 
 
Discount rate
 
2%
(2% - 3%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

32



Investment Type - Level 3
 
 
 
 
 
 
Debt Investments
 
Fair Values at
March 31, 2020
 
Valuation Techniques / Methodologies
 
Unobservable Inputs
 
Weighted Averages (a) / Amounts or Ranges
Technology Services
 
33,344,743
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
13% (12% - 30%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$2,323,902
($50,000 - $3,024,288)
 
 
 
 
 
 
Discount rate
 
2%
 
 
 
 
 
 
 
 
 
Wireless
 
16,279,008
 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
14% (12% - 16%)
 
 
 
 
 
 
 
 
 
Total debt investments
 
$
363,541,670

 
 
 
 
 
 
(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) / Amounts or Ranges
 
 
 
 
 
 
 
 
 
Biotechnology
 
$
3,490,423

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
15% (14% - 21%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments

Discount rate
 

$0*


0%
 
 
 
 
 
 
 
 
 
Computers and Storage
 
3,073,525

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
19%*
 
 
 
 
 
 
 
 
 
Enterprise Networking
 
112,500

 
Income approach
 
Expected amount and timing of cash flow payments

Discount rate
 

$112,500*


0%
 
 
 
 
 
 
 
 
 
Internet
 
64,696,219

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
15% (13% - 31%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$1,880,549
($999,905 - $2,466,418)
 
 
 
 
 
 
Discount rate
 
3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

33



Investment Type - Level 3
 
 
 
 
 
 
Debt Investments
 
Fair Values at
December 31, 2019
 
Valuation Techniques / Methodologies
 
Unobservable Inputs
 
Weighted Averages (a) / Amounts or Ranges
Medical Devices
 
32,882,569

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
18% (13% - 38%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$10,529,931*
 
 
 
 
 
 
Discount rate
 
3%
 
 
 
 
 
 
 
 
 
Other Healthcare
 
43,659,587

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
15% (12% - 19%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$813,663
($703,323 - $1,130,989)
 
 
 
 
 
 
Discount rate
 
2%
(2% - 3%)
 
 
 
 
 
 
 
 
 
Other Technology
 
108,088,734

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
16% (12% - 35%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$2,324,058
($0 - $2,844,003)
 
 
 
 
 
 
Discount rate
 
3%
(0% - 3%)
 
 
 
 
 
 
 
 
 
Security
 
2,815,378

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
20% (16% - 25%)
 
 
 
 
 
 
 
 
 
Semiconductors and Equipment
 
7,360,968

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
15% (14% - 15%)
 
 
 
 
 
 
 
 
 
Software
 
61,107,983

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
16% (13% - 26%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$2,463,985
($517,921 - $2,978,760)
 
 
 
 
 
 
Discount rate
 
2%
(2% - 3%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

34



Investment Type - Level 3
 
 
 
 
 
 
Debt Investments
 
Fair Values at
December 31, 2019
 
Valuation Techniques / Methodologies
 
Unobservable Inputs
 
Weighted Averages (a) / Amounts or Ranges
Technology Services
 
33,670,058

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
13% (12% - 30%)
 
 
 
 
Income approach
 
Expected amount and timing of cash flow payments
 
$1,597,464
($100,000 - $1,682,635)
 
 
 
 
 
 
Discount rate
 
2%
 
 
 
 
 
 
 
 
 
Wireless
 
10,997,880

 
Hypothetical market analysis
 
Hypothetical market coupon rate
 
14% (12% - 17%)
Total debt investments
 
$
371,955,824

 
 
 
 
 
 
(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*
$

 
$

 
$
363,541,670

 
$
363,541,670

Cash and cash equivalents
4,576,995

 

 

 
4,576,995

Total assets
$
4,576,995

 
$

 
$
363,541,670

 
$
368,118,665

 
 
 
 
 
 
 
 
LIABILITIES:
Level 1
 
Level 2
 
Level 3
 
Total
Borrowings under debt facility
$

 
$
170,000,000

 
$

 
$
170,000,000

Derivative liability - interest rate swap

 
620,451

 

 
620,451

Total liabilities
$

 
$
170,620,451

 
$

 
$
170,620,451


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

As of December 31, 2019
 
 
 
 
 
 
 
ASSETS:
Level 1
 
Level 2
 
Level 3
 
Total
Loans†
$

 
$

 
$
371,955,824

 
$
371,955,824

Cash and cash equivalents
12,569,629

 

 

 
12,569,629

Total assets
$
12,569,629

 
$

 
$
371,955,824

 
$
384,525,453

 
 
 
 
 
 
 
 
LIABILITIES:
Level 1
 
Level 2
 
Level 3
 
Total
Borrowings under debt facility
$

 
$
179,000,000

 
$

 
$
179,000,000

Derivative liability - interest rate swap

 
347,183

 

 
347,183

Total liabilities
$

 
$
179,347,183

 
$

 
$
179,347,183


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

35



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
 
Loans
Stock
Warrants
Beginning balance
$
371,955,824

$

$

Acquisitions and originations
59,383,334

9,000

4,469,613

Principal reductions and amortization of discounts
(53,518,548
)


Distributions to shareholder

(9,000
)
(4,469,613
)
Net change in unrealized loss from loans
(13,844,063
)


Net realized gain (loss) from loans
(434,877
)


Ending balance
$
363,541,670

$

$

Net change in unrealized loss from loans relating to loans still held at March 31, 2020
$
(14,198,612
)
 
 
    
 
For the Three Months Ended March 31, 2019
 
Loans
 
Warrants
Beginning balance
$
398,980,531

 
$

Acquisitions and originations
32,187,500

 
2,488,725

Principal reductions and amortization of discounts
(36,033,697
)
 

Distributions to shareholder

 
(2,488,725
)
Net change in unrealized loss from loans
(384,483
)
 

Net realized gain (loss) from loans
4,125

 

Ending balance
$
394,753,976

 
$

Net change in unrealized loss from loans relating to loans still held at March 31, 2019
$
(384,483
)
 
 
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 are 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 $423.6 million. Total contributed capital to the Company through March 31, 2020 and December 31, 2019 was $415.2 million and $372.8 million, of which $345.1 million and $314.6 million was contributed to the Fund, respectively.


36



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
$
30,000,000

 
$
3,000,000

Distributions of equity securities and convertible loan
4,478,613

 
2,488,724

Total distributions to shareholder
$
34,478,613

 
$
5,488,724


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
On April 5, 2016, the Fund established a secured, syndicated revolving loan facility in an initial amount up to $150.0 million (the “Loan Agreement”) led by Wells Fargo, N.A. and MUFG Union Bank, N.A. On September 11, 2017, the Loan Agreement was amended (the “Amended Loan Agreement”) and the borrowing availability thereunder increased the size of the facility to $280.0 million. An additional $75.0 million is potentially available to the Fund, subject to further negotiation and credit approval, through an accordion provision contained in the Amended Loan Agreement. 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 September 11, 2020, 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 Amended Loan Agreement, interest is charged to the Fund based on its borrowings at, pursuant to the election of the Fund, an annual rate of either (i) Reference Rate plus 1.75%, (ii) LIBOR plus 2.75% or (iii) LIBOR Market Index Rate plus 2.75%. When the Fund is using 50% or more of the maximum amount available under the Amended 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, $170.0 million and $179.0 million were outstanding under the facility, respectively.
    
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 $2.2 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, there are remaining unamortized fees and costs of $0.3 million and $0.4 million, respectively. The remaining unamortized fees and costs are amortized over the expected life of the facility, which is expected to terminate on September 11, 2020.

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) maximum loan loss reserves and (iv) unfunded commitment ratio. 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.

37



    
The following is the summary of the outstanding facility draws as of March 31, 2020:
 
Amount
Maturity Date
All-In Interest Rate**
LIBOR Loan
$
118,500,000

April 20, 2020 *
3.50%
LIBOR Market Index Rate Loans
51,500,000

September 11, 2020
Variable based on 1-month LIBOR rate
Total Outstanding
$
170,000,000

 
 
*Following the maturity date, Management elected to renew the LIBOR loan with no material changes in loan terms.
**Inclusive of 2.75% 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††
LIBOR Loan
$
118,500,000

January 22, 2020 †
4.53%
LIBOR Market Index Rate Loans
60,500,000

September 11, 2020
Variable based on 1-month LIBOR Rate
Total Outstanding
$
179,000,000

 
 
Following the maturity date, Management elected to renew the LIBOR loan with no material changes in loan terms.
†† Inclusive of 2.75% applicable LIBOR margin plus LIBOR rate.
7. MANAGEMENT FEE
As compensation for its services to the Fund, for the two-year period that commenced with the first capital closing, which took place on August 8, 2015, the Manager received a management fee (“Management Fee”) computed and paid at the end of each quarter at an annual rate of 2.5% of the Company’s committed equity capital (regardless of when or if the capital was called) as of the last day of each fiscal quarter. Following this two-year period, starting on August 12, 2017, Management Fees are calculated and paid at the end of each quarter at an annual rate of 2.5% of the Fund’s total assets (including amounts derived from borrowed funds) as of the last day of each quarter. Management Fees of $2.3 million and $2.5 million were recognized as expenses for the three months ended March 31, 2020 and 2019, respectively.
8. INTEREST RATE SWAP AGREEMENT
On April 12, 2018, the Fund entered into an interest rate swap agreement with MUFG Union Bank, N.A. to manage the Fund’s exposure to changes in interest rates on its expected borrowings under its debt facilities which do not match the fixed rate loans it originates. The initial swap transaction under this agreement was a cancellable interest rate swap with a notional amount of $102.0 million. On March 27, 2020, Management elected to exercise the option to cancel this swap effective March 31, 2020.

On June 14, 2019, the Fund entered into an interest rate swap and floor transaction with MUFG Union Bank, N.A. The addition of the floor further helps to align the swap with the terms of the variable rate index of the debt facility. The Fund may adjust the notional principal amount in order to remain in compliance with the hedging requirements the Fund’s debt facility.

As of March 31, 2020, the Fund had one interest rate swap transaction with an aggregate notional principal amount of $90.0 million.

    

38



As of March 31, 2020 and December 31, 2019, the fair value of the Fund’s interest rate swaps were as follows:
 
 
March 31, 2020
 
December 31, 2019
Derivatives:
 
Location on Condensed Statements of Assets and Liabilities
 
Fair Value
 
Location on Condensed Statements of Assets and Liabilities
 
Fair Value
Interest rate swap agreement
 
Derivative liability - interest rate swap
 
$
620,451

 
Derivative liability - interest rate swap
 
$
347,183

The Fund pays a fixed rate of 2.01% and receives from the counterparty a floating rate based upon a 1-Month LIBOR rate. Payments are made monthly. The payments and the interest rate swap transaction are expected to terminate on September 11, 2020. 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(s) had the following effect on the Fund’s Condensed Statements of Operations:
 
 
 
 
For the Three Months Ended
Derivatives:
 
Location on Condensed Statements of Operations
 
March 31, 2020
 
March 31, 2019
Interest rate swap agreement
 
Net change in unrealized loss from derivative instruments
 
$
(273,268
)
 
$
(323,193
)
 
Net realized gain (loss) from derivative instruments
 
$
(206,539
)
 
$
76,102

9. TAX STATUS
The Fund has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986 (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. The Fund elected to be treated for federal income tax purposes as a RIC under the Code with the filing of its federal corporate income tax return for 2016.

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 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.
    
    

39



As of March 31, 2020:
Asset
Cost
Unrealized Appreciation
Unrealized Depreciation
Net Appreciation (Depreciation)
Loans
$
384,474,328

$

$
(20,932,658
)
$
(20,932,658
)
Total
$
384,474,328

$

$
(20,932,658
)
$
(20,932,658
)
 
 
 
 
 
Derivative, Liability
Cost
Unrealized Appreciation
Unrealized Depreciation
Net Appreciation (Depreciation)
Derivative liability - interest rate swap
$

$

$
(620,451
)
$
(620,451
)
Total
$

$

$
(620,451
)
$
(620,451
)

As of December 31, 2019:
Asset
Cost
Unrealized Appreciation
Unrealized Depreciation
Net Appreciation (Depreciation)
Loans
$
379,044,418

$

$
(7,088,594
)
$
(7,088,594
)
Total
$
379,044,418

$

$
(7,088,594
)
$
(7,088,594
)

Derivative, Liability
Cost
Unrealized Appreciation
Unrealized Depreciation
Net Appreciation (Depreciation)
Derivative liability - interest rate swap
$

$
(347,183
)
$

$
(347,183
)
Total
$

$
(347,183
)
$

$
(347,183
)

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 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. Through March 31, 2020, the Fund had no 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.

40



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

 


41




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
BWI 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
Lifit, 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

 


42



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 **
(1.54
)%
 
4.39
%
 
 
 
 
Per share amounts:
 
 
 
Net asset value, beginning of period
$
2,065.85

 
$
2,165.44

Net investment income
116.43

 
100.66

Net realized and change in unrealized loss from loans and derivative instruments
(147.60
)
 
(6.27
)
Net increase (decrease) in net assets resulting from operations
(31.17
)
 
94.39

Distributions to shareholder
(344.78
)
 
(54.89
)
Contributions from shareholder
305.00

 

Net asset value, end of period
$
1,994.90

 
$
2,204.94

Net assets, end of period
$
199,490,371

 
$
220,494,213

 
 
 
 
Ratios to average net assets:
 
 
 
 
 
 
 
Expenses*
9.02
 %
 
10.08
%
Net investment income*
22.99
 %
 
18.54
%
Portfolio turn-over rate
-%

 
-%

         Average debt outstanding
$
176,375,000

 
$
191,625,000

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


43



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.

44



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 in 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 August 31, 2015, the Company completed its first closing of capital contributions. On September 1, 2015, the Fund made its first investment and became a non-diversified, closed-end investment company that elected to be treated as a BDC 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 for federal income tax purposes as a RIC under the Code with the filing of its federal corporate income tax return for 2016. 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

45



its taxable income for that year (even if that income is distributed to the Company) and all distributions out of its earnings and profits will be taxable 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 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 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 VII, Inc. (“Fund VII”) 

The Manager also serves as investment manager for Fund VII. The Fund’s Board of Directors determined that so long as Fund VII had capital available to invest in loan transactions with final maturities earlier than December 31, 2022 (the date on which Fund VII will be dissolved), the Fund would invest in each portfolio company in which Fund VII invested (“Investments”). Generally, the amount of each Investment was allocated 50% to the Fund and 50% to Fund VII, or such other allocations as were determined by the respective fund boards, so long as the Fund had capital available to invest. Effective June 30, 2017, Fund VII was no longer permitted to enter new commitments to borrowers; however, Fund VII was permitted to fund existing commitments, in which the Fund might also be invested. Fund VII’s last commitment expired on July 31, 2018. The ability of the Fund to co-invest with Fund VII, 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. To the extent that clients, other than Fund VII, 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.

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

The Manager also serves as manager for Fund IX. The Fund’s Board of Directors determined that so long as Fund IX has capital available to invest in loan transactions with final maturities earlier than December 31, 2028 (the date on which Fund IX will be dissolved), the Fund may invest in each portfolio company in which Fund IX invests (“Investments”). Generally, the amount of each investment will be allocated 50% to the Fund and 50% to Fund IX, 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 IX, and other clients advised by the Manager, is subject to the Conditions described above. Effective March 31, 2020, the Fund is no longer permitted to enter new commitments to borrowers; however the Fund is permitted to fund existing commitments through March 31, 2021. To the extent that clients, other than Fund IX, 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

46



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 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.


47



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 $16.2 million and $15.5 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, and other income from commitment fees and warrants. The average outstanding balance of performing loans calculated using the month-end balances was $354.0 million and $390.4 million for the three months ended March 31, 2020 and 2019, respectively. The weighted-average interest rate on performing loans was 17.73% and 15.84% for the same periods, respectively. The weighted-average interest rate on all loans was 17.23% and 15.60% for the three months ended March 31, 2020 and 2019, respectively. 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. The increase in investment income and weighted-average interest rate was primarily due to several early payoffs of loans in the portfolio during the three months ended March 31, 2020.

Management fees were $2.3 million and $2.5 million for the three months ended March 31, 2020 and 2019, respectively. Management fees were calculated as 2.5% of the Fund’s total assets and the decrease was due to a decline in the Fund’s total assets due primarily to a decline in cash on hand as a result of no significant loan fundings scheduled immediately after the quarter end, and a significant increase in reserves for both the performing and non-performing loans.

Interest expense was $2.0 million and $2.7 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 loan facility. Interest expense decreased primarily due to a decline in the average outstanding debt from $191.6 million in 2019 to $176.4 million in 2020 and a decline in weighted-average interest rates from 5.72% for the three months ended March 31, 2019 to 4.63% for the three months ended March 31, 2020.

Banking and professional fees were $0.1 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively. The banking and professional fees were comprised of legal, audit, banking and other professional fees. Banking and professional fees decreased primarily due to the decrease in legal and audit fees.

Other operating expenses were 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 $11.6 million and $10.1 million, respectively.

Net realized gain (loss) from loans was $(0.4) million and less than $0.1 million for the three months ended March 31, 2020 and 2019, respectively. The primary reason for the loss was due to a non-accrual loan write off.
 
Net realized gain (loss) from derivative instruments was $(0.2) million and less than $0.1 million for the three months ended March 31, 2020 and 2019, respectively. The net realized loss from derivative instruments for the three months ended March 31, 2020 was due to interest payments paid on the interest rate swap as the floating rate dropped below the fixed rate of the swap. The net realized gain from derivative instruments for the three months ended March 31, 2019 was from interest payments received from the interest rate swap as the floating rate rose above the fixed rate of the swap.

Net change in unrealized loss from loans was $13.8 million and $0.4 million for the three months ended March 31, 2020 and 2019, respectively. The net change in unrealized loss from loans consisted of fair value adjustments taken against loans as a result of an improvement or deterioration in certain portfolio companiesperformance as well as reversal of prior adjustments on realized loan losses.


48



Net change in unrealized loss from derivative instruments was $0.3 million for both the three months ended March 31, 2020 and 2019. The net change in unrealized loss from derivative instruments consisted of fair market value adjustments to the derivative interest rate swap. The decrease was primarily due to the change in expectations of LIBOR interest rates during the periods as well as the realization of some of the prior value of the position.

Net increase (decrease) in net assets resulting from operations for the three months ended March 31, 2020 and 2019, was $(3.1) million and $9.4 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 $(31.16) and $94.39, 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 $345.1 million and $314.6 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 $423.6 million, of which $415.2 million and $372.8 million had been called, respectively. As of March 31, 2020, $8.4 million of capital remains uncalled and the uncalled capital expires on August 20, 2020, the Fund’s fifth anniversary of its first investment unless extended. The Manager has exercised, and the Board of Directors ratified, its discretion to extend the Fund’s investment period and the uncalled capital expiration date to March 31, 2021. The Company has made $141.1 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 provided by operating activities
$
713,905

 
$
8,919,878

Net cash used in financing activities
(8,706,539
)
 
(27,423,898
)
Net decrease in cash and cash equivalents
$
(7,992,634
)
 
$
(18,504,020
)

As of March 31, 2020 and December 31, 2019, 2.3% and 6.1%, respectively, of the Fund’s net assets consisted of cash and cash equivalents.

On April 5, 2016, the Fund established a secured, syndicated revolving loan facility in an initial amount of up to $150.0 million (the “Loan Agreement”) led by Wells Fargo, N.A. and MUFG Union Bank, N.A. On September 11, 2017, the Loan Agreement was amended (the “Amended Loan Agreement”) and the borrowing availability thereunder increased the size of the facility to $280.0 million. All of the assets of the Fund collateralize borrowings by the Fund. The Fund pays interest on its borrowings and a fee on the unused portion of the facility. The facility terminates on September 11, 2020, but can be accelerated in the event of default, such as failure by the Fund to make timely interest or principal payments. As of March 31, 2020, $170.0 million was outstanding under the facility.

     For the three months ended March 31, 2020, 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 decreased by $8.5 million for the same period. Unexpired unfunded commitments totaled approximately $88.1 million as of March 31, 2020.

49




As of
Cumulative Amount
Disbursed
Principal
Reductions and Fair
Market Adjustments
Balance
Outstanding - Fair
Value
Unexpired
Unfunded
Commitments
March 31, 2020
$899.7 million
$536.2 million
$363.5 million
$88.1 million
December 31, 2019
$840.3 million
$468.3 million
$372.0 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
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

 


50



    

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
BWI 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
Lifit, 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

 

51




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 $4.6 million and approximately $175.3 million in scheduled loan receivable payments over the next twelve months. Additionally, the Fund has access to uncalled capital of $8.4 million as a liquidity source and the unused portion of the revolving credit facility. Management intends to extend the credit facility beyond the current contractual termination date. Together, 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.

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 $170.0 million at a weighted-average floating interest rate of 0.83%, for which the Fund had interest rate swaps in place with a fixed interest rate of 2.01% on $90.0 million of the notional principal amount, leaving the Fund with exposure to interest rate changes on the over-hedged balance.

52



 
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)%
$
(22,885
)
$
(450,000
)
$
850,000

$
377,115

1%
$
45,770

$
900,000

$
(1,700,000
)
$
(754,230
)
2%
$
91,540

$
1,800,000

$
(3,400,000
)
$
(1,508,460
)
3%
$
137,310

$
2,700,000

$
(5,100,000
)
$
(2,262,690
)
4%
$
183,080

$
3,600,000

$
(6,800,000
)
$
(3,016,920
)
5%
$
228,850

$
4,500,000

$
(8,500,000
)
$
(3,771,150
)
Additionally, a change in the interest rate may affect the value of the interest rate swaps 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 swaps 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

53



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.

54



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.  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 closure 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.


55



Item 6.  Exhibits

Exhibit Number
Description
3(i)
3(ii)
4.1
31.1

31.2

32.1

32.2



56



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 VIII, 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



57