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

Attached files

file	filename
EX-32.2 - VLL9INC 10-Q 06.30.2021 EX-32.2 - Venture Lending & Leasing IX, Inc.	vll910q063021ex322.htm
EX-32.1 - VLL9INC 10-Q 06.30.2021 EX-32.1 - Venture Lending & Leasing IX, Inc.	vll910q063021ex321.htm
EX-31.2 - VLL9INC 10-Q 06.30.2021 EX-31.2 - Venture Lending & Leasing IX, Inc.	vll910q063021ex312.htm
EX-31.1 - VLL9INC 10-Q 06.30.2021 EX-31.1 - Venture Lending & Leasing IX, Inc.	vll910q063021ex311.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 June 30, 2021


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

For the transition period from ___________ to ______________

Commission file number 814-01253

Venture Lending & Leasing IX, Inc.

(Exact Name of Registrant as specified in its charter)


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

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

(650) 234-4300

(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [ ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]

Accelerated filer [ ]

Non-accelerated filer [x]

Smaller reporting company [ ]

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]

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


Class						Outstanding as of August 12, 2021
Common Stock, $0.001 par value						100,000

VENTURE LENDING & LEASING IX, INC.

INDEX


PART I — FINANCIAL INFORMATION

Item 1.			Financial Statements

			Condensed Statements of Assets and Liabilities (Unaudited)
			As of June 30, 2021 and December 31, 2020

			Condensed Statements of Operations (Unaudited)
			For the three and six months ended June 30, 2021 and 2020

			Condensed Statements of Changes in Net Assets (Unaudited)
			For the three and six months ended June 30, 2021 and 2020

			Condensed Statements of Cash Flows (Unaudited)
			For the six months ended June 30, 2021 and 2020

			Condensed Schedules of Investments (Unaudited)
			As of June 30, 2021 and December 31, 2020

			Condensed Schedules of Derivative Instruments (Unaudited)
			As of June 30, 2021 and December 31, 2020

			Notes to Condensed Financial Statements (Unaudited)

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

Item 3.			Quantitative and Qualitative Disclosures About Market Risk

Item 4.			Controls and Procedures

PART II — OTHER INFORMATION

Item 1.			Legal Proceedings

Item 1A.			Risk Factors

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

Item 3.			Defaults Upon Senior Securities

Item 4.			Mine Safety Disclosures

Item 5.			Other Information

Item 6.			Exhibits

SIGNATURES

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

AS OF JUNE 30, 2021 AND DECEMBER 31, 2020


	June 30, 2021		December 31, 2020(a)
ASSETS
Loans, at estimated fair value
(cost of $420,218,344 and $323,011,028)	$	408,049,077	$	310,522,149
Derivative assets	131,239		—
Cash and cash equivalents	5,492,581		12,497,243
Dividend and interest receivables	5,417,431		3,856,598
Deferred bank fees	2,385,319		428,638
Other assets	355,003		257,168

Total assets	421,830,650		327,561,796

LIABILITIES
Borrowings under debt facility	184,500,000		140,000,000
Accrued management fees	1,811,250		1,811,250
Derivative liabilities	692,603		1,254,214

Accounts payable and other accrued liabilities	1,649,971		1,169,497
Total liabilities	188,653,824		144,234,961

NET ASSETS	$	233,176,826	$	183,326,835

Analysis of Net Assets:

Capital paid in on shares of capital stock	$	316,625,000	$	243,125,000
Total distributable losses	(83,448,174)		(59,798,165)
Net assets (equivalent to $2,331.77 and $1,833.27 per share based on 100,000 shares of capital stock outstanding - See Note 5 and Note 11)	$	233,176,826	$	183,326,835

Commitments & Contingent Liabilities:
Unexpired unfunded commitments (See Note 10)	$	81,950,000	$	83,200,000

(a) Certain prior period information has been disclosed to conform to current presentation.

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020


	For the Three Months Ended June 30, 2021		For the Three Months Ended June 30, 2020		For the Six Months Ended June 30, 2021		For the Six Months Ended June 30, 2020

INVESTMENT INCOME:
Interest on loans	$	18,455,104	$	9,308,799	$	33,142,352	$	19,655,717
Other interest and other income	444		11,308		21,999		512,004
Total investment income	18,455,548		9,320,107		33,164,351		20,167,721

EXPENSES:
Management fees	1,811,250		1,840,000		3,622,500		3,680,000

Interest expense	1,537,561		921,686		2,750,725		2,151,471
Banking and professional fees	640,849		191,921		742,608		256,937
Other operating expenses	30,226		26,329		60,869		58,587
Total expenses	4,019,886		2,979,936		7,176,702		6,146,995

Net investment income	14,435,662		6,340,171		25,987,649		14,020,726

Net realized loss from loans	—		—		(119,127)		—
Net realized loss from derivative instruments	(335,383)		(254,229)		(651,085)		(340,288)
Net change in unrealized gain (loss) from loans	(543,614)		246,869		319,612		(6,184,843)
Net change in unrealized gain (loss) from derivative instruments	283,465		(16,721)		692,850		(1,147,317)
Net realized and change in unrealized gain (loss) from loans and derivative instruments	(595,532)		(24,081)		242,250		(7,672,448)

Net increase in net assets resulting from operations	$	13,840,130	$	6,316,090	$	26,229,899	$	6,348,278

Amounts per common share:
Net increase in net assets resulting from operations per share	$	138.40	$	63.16	$	262.30	$	63.48
Weighted average shares outstanding	100,000		100,000		100,000		100,000

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020


	Common Stock
	Shares	Par Value		Additional Paid-in Capital		Total Distributable Earnings (Loss)		Net Assets
Balance at March 31, 2020	100,000	$	100	$	181,124,900	$	(38,481,295)	$	142,643,705
Net increase in net assets resulting from operations	—	—		—		6,316,090		6,316,090

Distributions to shareholder	—	—		—		(2,238,101)		(2,238,101)
Contributions from shareholder	—	—		—		—		—
Balance at Jun 30, 2020	100,000	$	100	$	181,124,900	$	(34,403,306)	$	146,721,694

Balance at March 31, 2021	100,000	$	100	$	257,124,900	$	(76,884,106)	$	180,240,894
Net increase in net assets resulting from operations	—	—		—		13,840,130		13,840,130
Distributions to shareholder	—	—		—		(20,404,198)		(20,404,198)

Contributions from shareholder	—	—		59,500,000		—		59,500,000
Balance at June 30, 2021	100,000	$	100	$	316,624,900	$	(83,448,174)	$	233,176,826

Balance at December 31, 2019	100,000	$	100	$	148,124,900	$	(34,292,627)	$	113,832,373
Net increase in net assets resulting from operations	—	—		—		6,348,278		6,348,278
Distributions to shareholder	—	—		—		(6,458,957)		(6,458,957)

Contributions from shareholder	—	—		33,000,000		—		33,000,000
Balance at June 30, 2020	100,000	$	100	$	181,124,900	$	(34,403,306)	$	146,721,694

Balance at December 31, 2020	100,000	$	100	$	243,124,900	$	(59,798,165)	$	183,326,835
Net increase in net assets resulting from operations	—	—		—		26,229,899		26,229,899
Distributions to shareholder	—	—		—		(49,879,908)		(49,879,908)

Contributions from shareholder	—	—		73,500,000		—		73,500,000
Balance at June 30, 2021	100,000	$	100	$	316,624,900	$	(83,448,174)	$	233,176,826

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX INC.

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020


	For the Six Months Ended June 30, 2021		For the Six Months Ended June 30, 2020(a)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations	$	26,229,899	$	6,348,278
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Net realized loss from loans	119,127		—
Net realized loss from derivative instruments	651,085		340,288
Net change in unrealized (gain) loss from loans	(319,612)		6,184,843
Net change in unrealized (gain) loss from derivative instruments	(692,850)		1,147,317
Amortization of deferred costs related to borrowing facility	360,569		214,319
Net increase in dividend and interest receivables	(1,560,833)		(458,043)
Net increase in other assets	(97,835)		(79,655)
Net increase (decrease) in accounts payable, other accrued liabilities and accrued management fees	480,474		(359,123)
Origination of loans	(168,925,000)		(97,216,667)
Principal payments on loans	63,571,568		30,493,678
Accretion of discount on loans	8,000,701		3,860,743
Acquisition of equity securities	(16,053,620)		(5,893,967)
Net cash used in operating activities	(88,236,327)		(55,417,989)

CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to shareholder	(33,800,000)		—
Contributions from shareholder	73,500,000		33,000,000
Borrowings under debt facility	91,200,000		52,500,000
Repayments of borrowings under debt facility	(46,700,000)		(32,500,000)
Payments made for derivative instruments	(651,085)		(340,288)

Payments of bank facility fees and costs	(2,317,250)		—
Net cash provided by financing activities	81,231,665		52,659,712

Net decrease in cash and cash equivalents	(7,004,662)		(2,758,277)

CASH AND CASH EQUIVALENTS:
Beginning of period	12,497,243		10,754,759
End of period	$	5,492,581	$	7,996,482

SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE PERIOD:
Interest - Debt facility	$	2,034,290	$	2,031,760
NON-CASH OPERATING AND FINANCING ACTIVITIES:
Distributions of equity securities to shareholder	$	16,079,908	$	6,458,958
Receipt of equity securities as repayment of loans	$	26,288	$	564,991
(a) Certain prior period information has been disclosed to conform to current presentation.

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULE OF INVESTMENTS (UNAUDITED)

AS OF JUNE 30, 2021


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%		$	939,949	$	917,303	$	917,303	12/1/2022
	Antheia, Inc.		Senior Secured	11.5%		940,885		932,617		932,617		12/1/2022
	Antheia, Inc. Subtotal					1,880,834		1,849,920		1,849,920
	Driver Bioengineering, Inc.		Senior Secured	11.0%		711,721		700,130		700,130		6/1/2023
	Driver Bioengineering, Inc.		Senior Secured	11.0%		282,066		257,065		257,065		4/1/2023
	Driver Bioengineering, Inc. Subtotal					993,787		957,195		957,195
	GLO Pharma, Inc.		Senior Secured	10.5%		2,973,185		2,875,743		2,875,743		12/1/2024
	Quartzy, Inc.		Senior Secured	12.0%		603,986		552,096		552,096		8/1/2023
	Quartzy, Inc.		Senior Secured	12.0%		1,112,891		1,088,861		1,088,861		7/1/2024
	Quartzy, Inc.		Senior Secured	12.0%		1,112,486		1,090,632		1,090,632		5/1/2024
	Quartzy, Inc. Subtotal					2,829,363		2,731,589		2,731,589
Biotechnology Total		3.6%				$	8,677,169	$	8,414,447	$	8,414,447

Enterprise Networking
	Diamanti, Inc.		Senior Secured	11.0%		$	5,932,984	$	5,273,502	$	4,528,630	*
Enterprise Networking Total		1.9%				$	5,932,984	$	5,273,502	$	4,528,630

Computers & Storage
	Canary Connect, Inc.		Senior Secured	12.0%		$	7,913,696	$	7,527,198	$	7,527,198	3/1/2024
	Canary Connect, Inc.		Senior Secured	12.8%		1,809,417		1,772,777		1,772,777		3/1/2023
	Canary Connect, Inc.		Senior Secured	12.0%		1,979,165		1,934,319		1,934,319		3/1/2024
	Canary Connect, Inc. Subtotal					11,702,278		11,234,294		11,234,294
	Fetch Robotics, Inc.		Senior Secured	12.0%		1,484,528		1,456,932		1,456,932		6/1/2024
	Fetch Robotics, Inc.		Senior Secured	12.0%		7,413,945		7,159,153		7,159,153		6/1/2024
	Fetch Robotics, Inc. Subtotal					8,898,473		8,616,085		8,616,085
Computers & Storage Total		8.5%				$	20,600,751	$	19,850,379	$	19,850,379

Internet
	Ainsly, Inc. ** ^		Senior Secured	12.5%		$	124,960	$	124,960	$	124,960	8/1/2022
	Ainsly, Inc. ** ^		Senior Secured	12.5%		374,853		359,748		359,748		8/1/2022
	Ainsly, Inc. ** ^		Senior Secured	12.5%		225,844		204,259		204,259		9/1/2023
	Ainsly, Inc. Subtotal ** ^					725,657		688,967		688,967
	iZENEtech, Inc. ** ^		Senior Secured	12.3%		5,000,000		4,735,267		4,735,267		9/1/2024
	Merchbar, Inc.		Senior Secured	11.8%		361,007		348,035		348,035		3/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		2,470,189		2,442,913		2,442,913		2/1/2024
	MyPizza Technologies, Inc.		Senior Secured	11.5%		4,939,696		4,820,686		4,820,686		12/1/2023
	MyPizza Technologies, Inc. Subtotal					7,409,885		7,263,599		7,263,599
	Nimble Rx, Inc.		Senior Secured	12.0%		1,200,742		1,164,964		1,164,964		11/1/2023
	Nimble Rx, Inc.		Senior Secured	12.0%		864,395		805,875		805,875		2/1/2023
	Nimble Rx, Inc. Subtotal					2,065,137		1,970,839		1,970,839
	OneLocal, Inc. ** ^		Senior Secured	12.3%		844,634		778,132		778,132		3/1/2023
	Osix Corporation		Senior Secured	12.3%		22,266		21,446		21,446		12/1/2021
	Proper Labs, Inc.		Senior Secured	11.5%		1,485,377		1,350,496		1,350,496		11/1/2024


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	RenoFi, Inc.		Senior Secured	12.0%		203,667		200,240		200,240		6/1/2023
	RenoFi, Inc.		Senior Secured	12.0%		203,556		193,063		193,063		6/1/2023
	RenoFi, Inc.		Senior Secured	12.0%		989,271		955,741		955,741		12/1/2023
	RenoFi, Inc. Subtotal					1,396,494		1,349,044		1,349,044
	Residently USA, LLC ** ^		Senior Secured	12.0%		371,056		371,056		371,056		12/1/2023
	Residently USA, LLC ** ^		Senior Secured	12.0%		691,812		638,290		638,290		2/1/2023
	Residently USA, LLC Subtotal ** ^					1,062,868		1,009,346		1,009,346
	RetailerX, Inc.		Senior Secured	12.0%		989,258		939,373		939,373		5/1/2024
	RetailerX, Inc.		Senior Secured	12.0%		1,979,762		1,871,964		1,871,964		2/1/2025
	RetailerX, Inc. Subtotal					2,969,020		2,811,337		2,811,337
	Serface Care, Inc.		Senior Secured	12.3%		961,139		510,159		47,617		*
	Shadow, PBC		Senior Secured	11.5%		351,852		335,701		335,701		10/1/2022
	Starface World, Inc.		Senior Secured	12.0%		494,626		484,681		484,681		1/1/2024
	Starface World, Inc.		Senior Secured	12.0%		960,618		913,185		913,185		11/1/2023
	Starface World, Inc.		Senior Secured	11.3%		2,475,570		2,331,351		2,331,351		10/1/2024
	Starface World, Inc. Subtotal					3,930,814		3,729,217		3,729,217
	Stay Alfred, Inc.		Senior Secured	18.0%		6,061,856		4,242,761		757,109		*
	Verishop, Inc.		Senior Secured	12.0%		2,118,207		2,042,246		2,042,246		12/1/2023
	Verishop, Inc.		Senior Secured	12.0%		2,119,008		2,093,929		2,093,929		12/1/2023
	Verishop, Inc. Subtotal					4,237,215		4,136,175		4,136,175
	VineBox Inc.		Senior Secured	12.0%		2,969,188		2,820,879		2,820,879		9/1/2024
Internet Total		14.6%				$	41,854,409	$	38,101,400	$	34,153,206

Medical Devices
	Ablacon, Inc.		Senior Secured	11.0%		$	1,802,657	$	1,781,800	$	1,781,800	3/1/2023
	Ablacon, Inc.		Senior Secured	11.0%		1,801,993		1,746,079		1,746,079		3/1/2023
	Ablacon, Inc. Subtotal					3,604,650		3,527,879		3,527,879
	Anutra Medical, Inc.		Senior Secured	12.0%		141,074		137,525		137,525		10/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		429,534		412,130		412,130		10/1/2023
	CytoVale, Inc.		Senior Secured	12.0%		189,207		185,283		185,283		3/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		442,914		436,281		436,281		11/1/2023
	CytoVale, Inc.		Senior Secured	12.0%		248,627		246,915		246,915		6/1/2022
	CytoVale, Inc.		Senior Secured	12.0%		989,697		962,916		962,916		11/1/2024
	CytoVale, Inc.		Senior Secured	12.0%		1,978,965		1,875,476		1,875,476		9/1/2024
	CytoVale, Inc.		Senior Secured	12.0%		214,429		212,834		212,834		7/1/2022
	CytoVale, Inc. Subtotal					4,493,373		4,331,835		4,331,835
	eXo Imaging, Inc.		Senior Secured	11.8%		1,806,973		1,775,022		1,775,022		9/1/2023
	eXo Imaging, Inc.		Senior Secured	11.8%		1,805,360		1,704,594		1,704,594		9/1/2023
	eXo Imaging, Inc. Subtotal					3,612,333		3,479,616		3,479,616
	Medrobotics Corporation, Inc.		Senior Secured	18.0%		10,000,000		8,793,564		3,275,463		*
	Norbert Health, Inc.		Senior Secured	12.3%		984,007		871,933		871,933		6/1/2024
	Siren Care, Inc.		Senior Secured	12.5%		1,863,321		1,795,148		1,795,148		10/1/2023
	Siren Care, Inc.		Senior Secured	12.5%		931,893		917,432		917,432		10/1/2023
	Siren Care, Inc. Subtotal					2,795,214		2,712,580		2,712,580
	SVN Med, LLC		Senior Secured	15.0%		1,971,624		1,624,553		1,624,553		12/1/2023
	SVN Med, LLC		Senior Secured	15.0%		986,065		807,338		807,338		12/1/2023
	SVN Med, LLC Subtotal					2,957,689		2,431,891		2,431,891
Medical Devices Total		8.9%				$	28,588,340	$	26,286,823	$	20,768,722


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
Other Healthcare
	Alchera Incorporated		Senior Secured	12.0%		$	1,484,833	$	1,281,081	$	1,281,081	7/1/2024
	Artisan Development Labs, Inc.		Senior Secured	12.3%		377,079		338,710		338,710		4/1/2023
	Elysium Health, Inc.		Senior Secured	12.0%		7,424,854		6,563,402		6,563,402		2/1/2025
	GoForward, Inc.		Senior Secured	11.5%		5,637,808		5,320,406		5,320,406		9/1/2023
	GoForward, Inc.		Senior Secured	11.5%		3,093,209		3,020,324		3,020,324		6/1/2024
	GoForward, Inc. Subtotal					8,731,017		8,340,730		8,340,730
	Hello Heart Inc.		Senior Secured	11.0%		939,734		907,828		907,828		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		1,980,718		1,832,798		1,832,798		6/1/2024
	Hello Heart Inc.		Senior Secured	11.0%		751,999		743,793		743,793		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		720,865		711,581		711,581		11/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		1,980,718		1,941,245		1,941,245		6/1/2025
	Hello Heart Inc. Subtotal					6,374,034		6,137,245		6,137,245
	Honeybee Health, Inc.		Senior Secured	11.0%		1,966,999		1,966,999		1,966,999		6/1/2024
	Honeybee Health, Inc.		Senior Secured	11.0%		990,564		869,921		869,921		6/1/2024
	Honeybee Health, Inc. Subtotal					2,957,563		2,836,920		2,836,920
	HumanAPI, Inc.		Senior Secured	11.8%		1,980,387		1,849,009		1,849,009		8/1/2024
	HumanAPI, Inc.		Senior Secured	11.8%		1,239,409		1,191,219		1,191,219		7/1/2023
	HumanAPI, Inc. Subtotal					3,219,796		3,040,228		3,040,228
	Minded, Inc.		Senior Secured	12.0%		1,979,333		1,844,161		1,844,161		12/1/2024
	Oula Heath, Inc.		Senior Secured	12.0%		742,112		696,960		696,960		2/1/2024
	PeerWell, Inc.		Senior Secured	12.0%		989,090		929,246		929,246		3/1/2024
	SchoolCare, Inc.		Senior Secured	11.8%		627,896		621,255		621,255		7/1/2022
	Sparta Software Corporation		Senior Secured	11.5%	2.2%	206,958		203,704		203,704		5/1/2022
	Therapydia, Inc.		Senior Secured	12.0%		494,948		421,720		421,720		4/1/2025
	Therapydia, Inc.		Senior Secured	12.5%	1.7%	88,466		88,466		88,466		6/1/2023
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	78,815		75,298		75,298		3/1/2023
	Therapydia, Inc. Subtotal					662,229		585,484		585,484
	Tia, Inc.		Senior Secured	11.8%		2,474,764		2,422,373		2,422,373		9/1/2024
	Tia, Inc.		Senior Secured	11.8%		1,978,846		1,754,645		1,754,645		5/1/2024
	Tia, Inc. Subtotal					4,453,610		4,177,018		4,177,018
	Vessel Health, Inc.		Senior Secured	12.0%		618,141		573,230		573,230		3/1/2024
	Vessel Health, Inc.		Senior Secured	12.0%		618,230		618,230		618,230		3/1/2024
	Vessel Health, Inc. Subtotal					1,236,371		1,191,460		1,191,460
Other Healthcare Total		16.6%				$	41,466,775	$	38,787,604	$	38,787,604

Other Technology
	8E14 Networks		Senior Secured	13.0%		$	271,038	$	209,556	$	209,556	9/1/2023
	8E14 Networks		Senior Secured	13.0%		296,568		296,568		296,568		12/1/2023
	8E14 Networks Subtotal					567,606		506,124		506,124
	8i Corporation		Senior Secured	12.0%		1,484,084		1,409,633		1,409,633		12/1/2023
	Aclima, Inc.		Senior Secured	12.0%		1,864,635		1,683,435		1,683,435		10/1/2023
	Aclima, Inc.		Senior Secured	11.9%		455,267		429,417		429,417		4/1/2022
	Aclima, Inc. Subtotal					2,319,902		2,112,852		2,112,852
	Antitoxin Technologies Inc. ** ^		Senior Secured	12.0%		989,213		878,365		878,365		12/1/2023
	Antitoxin Technologies Inc. ** ^		Senior Secured	11.5%		265,206		255,986		255,986		9/1/2022
	Antitoxin Technologies Inc. Subtotal ** ^					1,254,419		1,134,351		1,134,351
	ATeam Army, Inc.		Senior Secured	12.0%		942,037		905,973		905,973		4/1/2023
	Beanfields, PBC		Senior Secured	12.5%		1,143,222		1,110,141		1,110,141		3/1/2023
	Benson Hill Bio, Inc.		Senior Secured	12.5%		9,650,046		9,121,799		9,121,799		5/1/2024
	Brave Care Inc.		Senior Secured	12.0%		2,210,250		2,024,079		2,024,079		9/1/2024
	Brightside Benefit, Inc.		Senior Secured	12.4%		620,533		614,282		614,282		3/1/2023


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value	Maturity Date
	Brightside Benefit, Inc.		Senior Secured	12.1%		341,906	331,948	331,948	9/1/2022
	Brightside Benefit, Inc. Subtotal					962,439	946,230	946,230
	BW Industries, Inc.		Senior Secured	11.8%		1,499,881	1,479,288	1,479,288	6/1/2023
	BW Industries, Inc.		Senior Secured	11.8%		1,444,366	1,358,691	1,358,691	5/1/2023
	BW Industries, Inc. Subtotal					2,944,247	2,837,979	2,837,979
	Candy Club Holdings, Inc. **^		Senior Secured	12.0%		4,948,858	3,709,841	3,709,841	10/1/2024
	ClipCall, Inc.		Senior Secured	12.5%		466,419	420,364	420,364	10/1/2023
	Content Adjacent, Inc.		Senior Secured	12.0%		1,978,462	1,902,337	1,902,337	6/1/2024
	Coterie Applications, Inc.		Senior Secured	12.5%		494,680	494,680	494,680	6/1/2024
	Coterie Applications, Inc.		Senior Secured	12.5%		903,057	821,871	821,871	9/1/2023
	Coterie Applications, Inc.		Senior Secured	12.5%		989,019	989,019	989,019	3/1/2024
	Coterie Applications, Inc. Subtotal					2,386,756	2,305,570	2,305,570
	Equestrian Labs, Inc.		Senior Secured	12.0%		738,750	720,085	720,085	6/1/2024
	Equestrian Labs, Inc.		Senior Secured	12.0%		1,484,528	1,371,008	1,371,008	6/1/2024
	Equestrian Labs, Inc. Subtotal					2,223,278	2,091,093	2,091,093
	Fakespot, Inc.		Senior Secured	12.0%		494,812	434,571	434,571	8/1/2024
	Fakespot, Inc.		Senior Secured	12.0%		989,667	968,037	968,037	8/1/2024
	Fakespot, Inc. Subtotal					1,484,479	1,402,608	1,402,608
	Fitplan, Inc. ** ^		Senior Secured	12.5%		1,266,870	1,008,545	1,008,545	*
	Flo Water, Inc.		Senior Secured	11.8%		1,695,084	1,626,526	1,626,526	12/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		1,043,375	1,031,574	1,031,574	4/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		1,524,491	1,474,750	1,474,750	1/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		6,924,650	6,561,468	6,561,468	6/1/2025
	Higher Ground Education, Inc.		Senior Secured	12.5%		4,946,104	4,698,187	4,698,187	2/1/2025
	Higher Ground Education, Inc.		Senior Secured	12.5%		402,908	397,622	397,622	8/1/2023
	Higher Ground Education, Inc.		Senior Secured	12.5%		361,802	357,475	357,475	5/1/2023
	Higher Ground Education, Inc. Subtotal					15,203,330	14,521,076	14,521,076
	Hint, Inc.		Senior Secured	11.0%		186,928	185,042	185,042	8/1/2021
	Hint, Inc.		Senior Secured	12.0%		4,457,321	4,114,628	4,114,628	6/1/2023
	Hint, Inc. Subtotal					4,644,249	4,299,670	4,299,670
	Inscopix, Inc.		Senior Secured	12.0%		4,949,483	4,805,802	4,805,802	4/1/2025
	Jiko Group, Inc.		Senior Secured	12.0%		2,851,103	2,752,889	2,752,889	6/1/2023
	Lambda School, Inc.		Senior Secured	11.3%		2,182,682	2,182,682	2,182,682	8/1/2023
	Lambda School, Inc.		Senior Secured	11.3%		4,216,070	4,047,217	4,047,217	7/1/2023
	Lambda School, Inc. Subtotal					6,398,752	6,229,899	6,229,899
	Level Home, Inc.		Senior Secured	11.8%		9,901,893	9,159,339	9,159,339	5/1/2025
	Make School, Inc.		Senior Secured	11.3%		197,776	92,291	85,966	*
	Mavenform, Inc.		Senior Secured	11.5%		495,049	483,233	483,233	6/1/2025
	Mavenform, Inc.		Senior Secured	11.5%		989,892	934,552	934,552	6/1/2024
	Mavenform, Inc. Subtotal					1,484,941	1,417,785	1,417,785
	Merlin Labs, Inc.		Senior Secured	11.0%		164,576	162,816	162,816	1/1/2023
	Merlin Labs, Inc.		Senior Secured	11.0%		214,412	210,439	210,439	6/1/2022
	Merlin Labs, Inc. Subtotal					378,988	373,255	373,255
	Momentus, Inc.		Senior Secured	12.0%		24,742,425	19,486,255	19,486,255	3/1/2022
	NanoGriptech Inc.		Senior Secured	12.3%		1,237,115	1,074,910	1,074,910	8/1/2024
	Natomas Labs, Inc.		Senior Secured	12.3%		1,979,204	1,931,578	1,931,578	2/1/2024
	Natomas Labs, Inc.		Senior Secured	12.3%		2,967,363	2,783,180	2,783,180	2/1/2024
	Natomas Labs, Inc.		Senior Secured	12.3%		2,468,525	2,267,861	2,267,861	9/1/2024


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal	Cost	Fair Value	Maturity Date
	Natomas Labs, Inc. Subtotal					7,415,092	6,982,619	6,982,619
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		1,998,205	1,959,125	1,959,125	8/1/2022
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		3,057,481	2,956,635	2,956,635	8/1/2023
	NewGlobe Schools, Inc. ** ^		Senior Secured	12.5%		4,943,379	4,852,642	4,852,642	12/1/2023
	NewGlobe Schools, Inc. Subtotal ** ^					9,999,065	9,768,402	9,768,402
	Noteleaf, Inc.		Senior Secured	12.5%		2,277,124	1,920,971	788,192	*
	OnePointOne, Inc.		Senior Secured	12.0%		1,979,591	1,932,944	1,932,944	2/1/2024
	OnePointOne, Inc.		Senior Secured	12.0%		1,978,559	1,841,100	1,841,100	2/1/2024
	OnePointOne, Inc. Subtotal					3,958,150	3,774,044	3,774,044
	Opya, Inc.		Senior Secured	12.0%		885,839	863,448	863,448	11/1/2023
	Ozy Media, Inc.		Senior Secured	12.8%		2,037,008	1,978,431	1,978,431	6/1/2023
	Ozy Media, Inc.		Senior Secured	12.8%		2,445,278	2,316,600	2,316,600	6/1/2023
	Ozy Media, Inc.		Senior Secured	12.8%		1,355,230	1,312,781	1,312,781	9/1/2023
	Ozy Media, Inc.		Senior Secured	12.8%		1,630,759	1,630,759	1,630,759	6/1/2023
	Ozy Media, Inc. Subtotal					7,468,275	7,238,571	7,238,571
	Percepto, Inc.		Senior Secured	12.2%		1,270,468	1,224,115	1,224,115	4/1/2023
	Pitzi, Ltd. ** ^		Senior Secured	12.0%		1,413,865	1,377,171	1,377,171	4/1/2024
	Plant Prefab, Inc.		Senior Secured	11.0%		686,216	665,116	665,116	8/1/2022
	Platform Science, Inc.		Senior Secured	11.5%		3,728,828	3,584,113	3,584,113	10/1/2023
	Platform Science, Inc.		Senior Secured	12.0%		366,688	358,720	358,720	2/1/2022
	Platform Science, Inc. Subtotal					4,095,516	3,942,833	3,942,833
	Plethora, Inc.		Senior Secured	11.5%		1,485,188	1,430,490	1,430,490	9/1/2024
	Plethora, Inc.		Senior Secured	11.5%		879,592	845,321	845,321	7/1/2022
	Plethora, Inc. Subtotal					2,364,780	2,275,811	2,275,811
	Privoro Holdings, Inc.		Senior Secured	12.0%		1,978,351	1,866,684	1,866,684	4/1/2024
	Reali Inc.		Senior Secured	12.5%		3,612,230	3,483,663	3,483,663	9/1/2023
	Reali Inc.		Senior Secured	12.5%		2,967,662	2,817,030	2,817,030	3/1/2024
	Reali Inc. Subtotal					6,579,892	6,300,693	6,300,693
	Romaine Empire, Inc.		Senior Secured	12.3%		4,878,591	4,697,936	4,697,936	9/1/2023
	Saltbox, Inc.		Senior Secured	12.3%		349,182	338,897	338,897	6/1/2023
	SMS OPCO LLC		Senior Secured	8.0%		36,125	16,625	16,625	*
	Sorfeo Inc.		Senior Secured	11.5%		987,862	977,862	977,862	9/1/2024
	Sustainable Living Partners, LLC		Senior Secured	12.5%		3,749,092	3,411,715	3,411,715	8/1/2023
	The Safe and Fair Food Company LLC		Senior Secured	12.3%		2,473,629	2,129,608	2,129,608	9/1/2024
	TomoCredit, Inc.		Senior Secured	12.5%		361,420	361,420	361,420	9/1/2023
	TomoCredit, Inc.		Senior Secured	12.5%		541,872	503,699	503,699	9/1/2023
	TomoCredit, Inc. Subtotal					903,292	865,119	865,119
	Umbra Lab, Inc.		Senior Secured	12.0%		4,905,000	4,686,199	4,686,199	6/1/2024
	Umbra Lab, Inc.		Senior Secured	12.0%		4,947,952	4,754,000	4,754,000	6/1/2024
	Umbra Lab, Inc. Subtotal					9,852,952	9,440,199	9,440,199
	Veev Group, Inc.		Senior Secured	12.5%		3,054,849	3,015,352	3,015,352	6/1/2023
	Veev Group, Inc.		Senior Secured	12.5%		19,722,213	18,719,487	18,719,487	12/1/2024
	Veev Group, Inc.		Senior Secured	12.5%		1,018,068	941,227	941,227	6/1/2023
	Veev Group, Inc.		Senior Secured	12.5%		223,117	220,774	220,774	12/1/2021
	Veev Group, Inc. Subtotal					24,018,247	22,896,840	22,896,840
	Velo Holdings Limited		Senior Secured	12.0%		2,471,720	2,103,945	1,508,083	*
	Welcome Tech, Inc.		Senior Secured	10.5%		371,492	357,187	357,187	5/1/2022
	Wheels Labs, Inc.		Senior Secured	12.5%		2,595,308	2,499,350	2,499,350	8/1/2022
	Wine Plum, Inc.		Senior Secured	12.5%		532,794	520,739	520,739	9/1/2022
	World Wrapps II, Inc.		Senior Secured	12.0%		494,774	494,774	494,774	6/1/2024
	World Wrapps II, Inc.		Senior Secured	12.0%		494,741	364,793	364,793	6/1/2024


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	World Wrapps II, Inc. Subtotal					989,515		859,567		859,567
Other Technology Total		85.1%				$	216,520,947	$	200,105,283	$	198,370,317

Security
	Axonius, Inc.		Senior Secured	12.0%		$	56,378	$	56,045	$	56,045	9/1/2021
	Nok Nok Labs, Inc.		Senior Secured	12.5%		371,118		367,866		367,866		6/1/2022
	Popily, Inc.		Senior Secured	12.5%		1,483,104		1,483,104		1,483,104		12/1/2023
	Popily, Inc.		Senior Secured	12.5%		988,438		896,125		896,125		12/1/2023
	Popily, Inc. Subtotal					2,471,542		2,379,229		2,379,229
	Safetrust Holdings, Inc.		Senior Secured	12.5%		64,438		58,125		58,125		8/1/2021
Security Total		1.2%				$	2,963,476	$	2,861,265	$	2,861,265

Semiconductors & Equipment
	ETA Compute, Inc.		Senior Secured	12.0%		$	279,096	$	276,653	$	276,653	11/1/2021
Semiconductors & Equipment Total		0.1%				$	279,096	$	276,653	$	276,653

Software
	Afero, Inc.		Senior Secured	12.3%		$	2,472,586	$	2,204,567	$	2,204,567	1/1/2024
	ArborMetrix, Inc.		Senior Secured	12.5%		1,248,850		1,208,652		1,208,652		9/1/2023
	ArborMetrix, Inc.		Senior Secured	12.5%		624,913		611,033		611,033		9/1/2023
	ArborMetrix, Inc. Subtotal					1,873,763		1,819,685		1,819,685
	BackboneAI Inc.		Senior Secured	12.3%		407,502		400,087		400,087		6/1/2023
	BackboneAI Inc.		Senior Secured	12.3%		407,303		367,376		367,376		6/1/2023
	BackboneAI Inc.		Senior Secured	12.3%		494,860		482,553		482,553		5/1/2024
	BackboneAI Inc. Subtotal					1,309,665		1,250,016		1,250,016
	Big Run Studios, Inc.		Senior Secured	11.5%		1,980,806		1,839,383		1,839,383		8/1/2024
	Bizly, Inc.		Senior Secured	11.5%		346,516		283,477		283,477		12/1/2024
	Bizly, Inc.		Senior Secured	11.5%		297,125		288,723		288,723		12/1/2024
	Bizly, Inc. Subtotal					643,641		572,200		572,200
	Blockdaemon, Inc.		Senior Secured	11.3%		18,742		18,534		18,534		8/1/2021
	Blockdaemon, Inc.		Senior Secured	11.3%		107,397		105,636		105,636		6/1/2022
	Blockdaemon, Inc.		Senior Secured	12.0%		989,590		930,847		930,847		3/1/2024
	Blockdaemon, Inc. Subtotal					1,115,729		1,055,017		1,055,017
	BriteCo LLC		Senior Secured	12.0%		395,910		327,732		327,732		7/1/2024
	Canary Technologies Corp.		Senior Secured	11.5%		203,365		194,798		194,798		6/1/2023
	Censia Inc.		Senior Secured	11.0%		561,550		545,385		545,385		10/1/2022
	Cloudleaf, Inc.		Senior Secured	12.0%		742,063		730,057		730,057		9/1/2024
	Cloudleaf, Inc.		Senior Secured	12.0%		1,207,959		1,148,925		1,148,925		8/1/2023
	Cloudleaf, Inc. Subtotal					1,950,022		1,878,982		1,878,982
	Dynamics, Inc.		Senior Secured	12.5%		1,138,729		1,114,176		1,114,176		2/1/2022
	Eskalera, Inc.		Senior Secured	10.5%		719,873		704,093		704,093		3/1/2023
	Grokker, Inc.		Senior Secured	11.5%		990,312		937,379		937,379		3/1/2025
	ICX Media, Inc.		Senior Secured			762,829		771,141		712,645		*
	Invoice2Go, Inc.		Senior Secured	12.0%		988,839		953,577		953,577		6/1/2024
	Invoice2Go, Inc.		Senior Secured	12.0%		919,266		778,831		778,831		3/1/2024
	Invoice2Go, Inc.		Senior Secured	12.0%		464,912		462,146		462,146		7/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		328,210		315,405		315,405		3/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		596,278		591,885		591,885		11/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%		722,518		716,139		716,139		3/1/2023
	Invoice2Go, Inc.		Senior Secured	12.0%		813,940		793,016		793,016		6/1/2023
	Invoice2Go, Inc. Subtotal					4,833,963		4,610,999		4,610,999
	Ipolipo, Inc.		Senior Secured	12.0%		920,610		859,933		859,933		9/1/2022
	Medable, Inc.		Senior Secured	12.0%		691,581		684,481		684,481		2/1/2023
	Medable, Inc.		Senior Secured	12.0%		1,382,985		1,326,879		1,326,879		2/1/2023


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	Medable, Inc. Subtotal					2,074,566		2,011,360		2,011,360
	Metawave Corporation		Senior Secured	12.0%		428,795		422,268		422,268		7/1/2022
	Migo Money, Inc. ** ^		Senior Secured	12.3%		166,944		164,010		164,010		12/1/2021
	Migo Money, Inc. ** ^		Senior Secured	12.5%		164,744		164,744		164,744		3/1/2022
	Migo Money, Inc. Subtotal ** ^					331,688		328,754		328,754
	OrderGroove, Inc.		Senior Secured	12.0%		4,663,529		4,405,795		4,405,795		4/1/2024
	Pixlee, Inc.		Senior Secured	12.3%		1,483,221		1,421,673		1,421,673		1/1/2024
	Safe Securities Inc.		Senior Secured	12.0%		345,821		330,057		330,057		2/1/2023
	SmartVid.io, Inc.		Senior Secured	11.8%		1,980,232		1,733,351		1,733,351		9/1/2024
	Sonatus, Inc		Senior Secured	12.5%		903,275		810,572		810,572		9/1/2023
	Splitwise, Inc.		Senior Secured	12.3%		314,526		306,316		306,316		12/1/2022
	Swiftly Systems, Inc.		Senior Secured	11.5%		4,948,282		4,126,468		4,126,468		10/1/2024
	Swiftly Systems, Inc.		Senior Secured	11.5%		2,475,088		2,337,967		2,337,967		1/1/2025
	Swiftly Systems, Inc. Subtotal					7,423,370		6,464,435		6,464,435
	Swivel, Inc.		Senior Secured	12.0%		114,888		111,082		111,082		8/1/2022
	Swivel, Inc.		Senior Secured	12.0%		130,034		130,034		130,034		10/1/2022
	Swivel, Inc. Subtotal					244,922		241,116		241,116
	Terragon, Inc.**^		Senior Secured	12.0%		494,975		343,461		343,461		5/1/2024
	Truthset, Inc.		Senior Secured	10.5%		258,206		246,617		246,617		2/1/2023
	Truthset, Inc.		Senior Secured	10.5%		293,199		293,200		293,200		5/1/2023
	Truthset, Inc. Subtotal					551,405		539,817		539,817
	Workspot, Inc.		Senior Secured	12.0%		2,882,815		2,751,934		2,751,934		11/1/2023
	Workspot, Inc.		Senior Secured	12.0%		84,561		83,616		83,616		9/1/2021
	Workspot, Inc.		Senior Secured	12.0%		423,182		417,665		417,665		10/1/2022
	Workspot, Inc.		Senior Secured	12.0%		989,754		934,691		934,691		3/1/2024
	Workspot, Inc.		Senior Secured	12.0%		373,895		360,558		360,558		8/1/2022
	Workspot, Inc. Subtotal					4,754,207		4,548,464		4,548,464
Software Total		19.1%				$	47,867,885	$	44,592,925	$	44,534,429

Technology Services
	iLearningEngines Inc.		Senior Secured	11.5%		$	7,919,550	$	7,009,387	$	7,009,387	12/1/2023
	Klar Holdings Limited ** ^		Senior Secured	12.0%		2,474,741		2,281,761		2,281,761		6/1/2024
	Klar Holdings Limited ** ^		Senior Secured	14.2%	4.0%	214,980		205,796		205,796		7/1/2023
	Klar Holdings Limited ** ^		Senior Secured	12.5%		141,371		125,825		125,825		10/1/2022
	Klar Holdings Limited ** ^		Senior Secured	12.0%	3.0%	2,461,667		2,401,079		2,401,079		8/1/2024
	Klar Holdings Limited Subtotal ** ^					5,292,759		5,014,461		5,014,461
	Liftit, Inc. ** ^		Senior Secured	12.0%		249,180		240,618		240,618		8/1/2022
	Liftit, Inc. ** ^		Senior Secured	12.0%		282,054		279,371		279,371		10/1/2022
	Liftit, Inc. Subtotal ** ^					531,234		519,989		519,989
	Loansnap Holdings Inc. **		Senior Secured	11.0%		1,722,464		1,651,949		1,651,949		12/1/2022
	Relimetrics, Inc.		Senior Secured	11.3%		96,131		94,887		94,887		1/1/2022
	Riffyn, Inc.		Senior Secured	11.5%		1,979,377		1,911,156		1,911,156		2/1/2024
	Riffyn, Inc.		Senior Secured	11.5%		1,980,070		1,954,830		1,954,830		4/1/2024
	Riffyn, Inc. Subtotal					3,959,447		3,865,986		3,865,986
	Zanbato, Inc.		Senior Secured	11.0%		3,159,106		3,075,323		3,075,323		9/1/2023
	Zeel Networks, Inc.		Senior Secured	11.0%		2,027,601		1,995,690		1,831,052		6/1/2023
Technology Services Total		9.9%				$	24,708,292	$	23,227,672	$	23,063,034

Wireless
	AirVine Scientific, Inc.		Senior Secured	10.8%		$	619,299	$	575,447	$	575,447	6/1/2024
	AirVine Scientific, Inc.		Senior Secured	12.0%		66,444		64,333		64,333		9/1/2022
	AirVine Scientific, Inc.		Senior Secured	12.0%		66,490		65,568		65,568		9/1/2022
	AirVine Scientific, Inc. Subtotal					752,233		705,348		705,348


Industry	Borrower	Percent of Net Assets (a)	Collateral	Interest Rate (b)	End of Term Payment (c)	Principal		Cost		Fair Value		Maturity Date
	MeshPlusPlus, Inc.		Senior Secured	12.5%		742,020		682,381		682,381		3/1/2024
	MeshPlusPlus, Inc.		Senior Secured	12.5%		247,309		239,940		239,940		6/1/2024
	MeshPlusPlus, Inc. Subtotal					989,329		922,321		922,321
	Parallel Wireless, Inc.		Senior Secured	11.8%		5,288,773		5,113,528		5,113,528		6/1/2023
	Parallel Wireless, Inc.		Senior Secured	11.8%		2,933,709		2,896,061		2,896,061		9/1/2023
	Parallel Wireless, Inc.		Senior Secured	11.8%		2,838,147		2,803,133		2,803,133		8/1/2023
	Parallel Wireless, Inc. Subtotal					11,060,629		10,812,722		10,812,722
Wireless Total		5.3%				$	12,802,191	$	12,440,391	$	12,440,391
Grand Total		175%				$	452,262,315	$	420,218,344	$	408,049,077

* As of June 30, 2021, loans with a cost basis of $24.7 million and a fair value of $12.7 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no income has been recognized.

**Indicates assets that the Fund deems “non-qualifying assets." As of June 30, 2021, 7.8% 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 June 30, 2021, all loans were made to non-affiliates.

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULE OF INVESTMENTS (UNAUDITED)

AS OF DECEMBER 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%		$	1,219,076	$	1,181,003	$	1,181,003	12/1/2022
	Antheia, Inc.		Senior Secured	11.5%		1,220,291		1,206,345		1,206,345		12/1/2022
	Antheia, Inc. Subtotal					2,439,367		2,387,348		2,387,348
	Driver Bioengineering, Inc.		Senior Secured	11.0%		866,600		849,310		849,310		6/1/2023
	Driver Bioengineering, Inc.		Senior Secured	11.0%		349,662		311,553		311,553		4/1/2023
	Driver Bioengineering, Inc. Subtotal					1,216,262		1,160,863		1,160,863
	Quartzy, Inc.		Senior Secured	12.0%		1,113,593		1,083,782		1,083,782		7/1/2024
	Quartzy, Inc.		Senior Secured	12.0%		722,540		648,418		648,418		8/1/2023
	Quartzy, Inc.		Senior Secured	12.0%		1,113,211		1,085,490		1,085,490		5/1/2024
	Quartzy, Inc. Subtotal					2,949,344		2,817,690		2,817,690
Biotechnology Total		3.5%				$	6,604,973	$	6,365,901	$	6,365,901

Computers & Storage
	Canary Connect, Inc.		Senior Secured	12.8%		$	2,256,808	$	2,199,490	$	2,199,490	3/1/2023
	Canary Connect, Inc.		Senior Secured	12.0%		7,918,698		7,426,948		7,426,948		3/1/2024
	Canary Connect, Inc. Subtotal					10,175,506		9,626,438		9,626,438
	Fetch Robotics, Inc.		Senior Secured	12.0%		7,418,932		7,104,656		7,104,656		6/1/2024
Computers & Storage Total		9.1%				$	17,594,438	$	16,731,094	$	16,731,094

Enterprise Networking
	Diamanti, Inc.		Senior Secured	12.3%		$	5,441,469	$	4,811,921	$	4,811,921	5/1/2024
	Diamanti, Inc.		Senior Secured	12.3%		494,824		467,988		467,988		7/1/2024
	Diamanti, Inc. Subtotal					5,936,293		5,279,909		5,279,909
Enterprise Networking Total		2.9%				$	5,936,293	$	5,279,909	$	5,279,909

Internet
	Ainsly, Inc. ** ^		Senior Secured	12.5%		$	519,587	$	490,896	$	490,896	8/1/2022
	Ainsly, Inc. ** ^		Senior Secured	12.5%		173,207		173,207		173,207		8/1/2022
	Ainsly, Inc. ** ^		Senior Secured	12.5%		247,340		217,309		217,309		9/1/2023
	Ainsly, Inc. Subtotal ** ^					940,134		881,412		881,412
	Amino Payments, Inc.		Senior Secured	10.8%		471,215		449,064		380,130		*
	Cesium, Inc.		Senior Secured	10.3%		105,348		103,881		103,881		1/1/2023
	Cesium, Inc.		Senior Secured	10.3%		210,624		200,481		200,481		1/1/2023
	Cesium, Inc. Subtotal					315,972		304,362		304,362
	iZENEtech, Inc. ** ^		Senior Secured	12.3%		5,000,000		4,674,880		4,674,880		9/1/2024
	Lukla, Inc.		Senior Secured	12.5%		247,208		237,422		237,422		6/1/2023
	Lukla, Inc.		Senior Secured	12.5%		407,447		363,867		363,867		12/1/2022
	Lukla, Inc. Subtotal					654,655		601,289		601,289
	Masse, Inc.		Senior Secured	18.0%		304,001		144,008		10,000		*
	Merchbar, Inc.		Senior Secured	11.8%		451,293		430,995		430,995		3/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		4,943,040		4,784,039		4,784,039		12/1/2023
	MyPizza Technologies, Inc.		Senior Secured	11.5%		2,471,842		2,436,444		2,436,444		2/1/2024
	MyPizza Technologies, Inc. Subtotal					7,414,882		7,220,483		7,220,483
	Nimble Rx, Inc.		Senior Secured	12.0%		1,091,906		999,055		999,055		2/1/2023
	Nimble Rx, Inc.		Senior Secured	12.0%		1,236,949		1,188,381		1,188,381		11/1/2023
	Nimble Rx, Inc. Subtotal					2,328,855		2,187,436		2,187,436


	OneLocal, Inc. ** ^		Senior Secured	12.3%	301,162		295,353		295,353		3/1/2023
	OneLocal, Inc. ** ^		Senior Secured	12.3%	301,078		281,207		281,207		3/1/2023
	OneLocal, Inc. ** ^		Senior Secured	12.3%	301,150		296,454		296,454		3/1/2023
	OneLocal, Inc. Subtotal ** ^				903,390		873,014		873,014
	Osix Corporation		Senior Secured	12.3%	43,214		40,350		40,350		12/1/2021
	RenoFi, Inc.		Senior Secured	12.0%	247,427		242,330		242,330		6/1/2023
	RenoFi, Inc.		Senior Secured	12.0%	989,893		945,226		945,226		12/1/2023
	RenoFi, Inc.		Senior Secured	12.0%	247,292		231,778		231,778		6/1/2023
	RenoFi, Inc. Subtotal				1,484,612		1,419,334		1,419,334
	Residently USA, LLC ** ^		Senior Secured	12.0%	873,899		789,139		789,139		2/1/2023
	Residently USA, LLC ** ^		Senior Secured	12.0%	371,000		371,000		371,000		12/1/2023
	Residently USA, LLC Subtotal ** ^				1,244,899		1,160,139		1,160,139
	RetailerX, Inc.		Senior Secured	12.0%	989,881		927,856		927,856		5/1/2024
	Serface Care, Inc.		Senior Secured	12.3%	961,139		566,912		21,201		*
	Shadow, PBC		Senior Secured	11.5%	470,556		441,930		441,930		10/1/2022
	Starface World, Inc.		Senior Secured	12.0%	494,938		481,875		481,875		1/1/2024
	Starface World, Inc.		Senior Secured	12.0%	989,583		925,385		925,385		11/1/2023
	Starface World, Inc. Subtotal				1,484,521		1,407,260		1,407,260
	Stay Alfred, Inc.		Senior Secured	18.0%	6,061,856		4,548,360		635,170		*
	Verishop, Inc.		Senior Secured	12.0%	2,472,054		2,437,550		2,437,550		12/1/2023
	Verishop, Inc.		Senior Secured	12.0%	2,471,119		2,366,934		2,366,934		12/1/2023
	Verishop, Inc. Subtotal				4,943,173		4,804,484		4,804,484
Internet Total		15.5%			$	36,468,248	$	33,083,568	$	28,421,725

Medical Devices
	Ablacon, Inc.		Senior Secured	11.0%	$	2,256,537	$	2,168,756	$	2,168,756	3/1/2023
	Ablacon, Inc.		Senior Secured	11.0%	2,257,368		2,224,508		2,224,508		3/1/2023
	Ablacon, Inc. Subtotal				4,513,905		4,393,264		4,393,264
	Anutra Medical, Inc.		Senior Secured	12.0%	188,448		182,138		182,138		10/1/2022
	CytoVale, Inc.		Senior Secured	12.0%	304,420		301,225		301,225		7/1/2022
	CytoVale, Inc.		Senior Secured	12.0%	362,240		358,640		358,640		6/1/2022
	CytoVale, Inc.		Senior Secured	12.0%	306,253		296,276		296,276		3/1/2022
	CytoVale, Inc.		Senior Secured	12.0%	1,978,667		1,856,409		1,856,409		9/1/2024
	CytoVale, Inc.		Senior Secured	12.0%	494,475		470,113		470,113		10/1/2023
	CytoVale, Inc.		Senior Secured	12.0%	494,687		485,502		485,502		11/1/2023
	CytoVale, Inc. Subtotal				3,940,742		3,768,165		3,768,165
	eXo Imaging, Inc.		Senior Secured	11.8%	1,978,816		1,837,427		1,837,427		9/1/2023
	eXo Imaging, Inc.		Senior Secured	11.8%	1,974,541		1,930,965		1,930,965		9/1/2023
	eXo Imaging, Inc. Subtotal				3,953,357		3,768,392		3,768,392
	Medrobotics Corporation, Inc.		Senior Secured	18.0%	10,000,000		8,793,564		3,275,463		*
	Siren Care, Inc.		Senior Secured	12.5%	1,977,800		1,883,794		1,883,794		10/1/2023
	Siren Care, Inc.		Senior Secured	12.5%	989,137		969,133		969,133		10/1/2023
	Siren Care, Inc. Subtotal				2,966,937		2,852,927		2,852,927
	SVN Med, LLC		Senior Secured	15.0%	1,973,663		1,525,305		1,525,305		12/1/2023
	SVN Med, LLC		Senior Secured	15.0%	987,065		756,382		756,382		12/1/2023
	SVN Med, LLC Subtotal				2,960,728		2,281,687		2,281,687
Medical Devices Total		11.2%			$	28,524,117	$	26,040,137	$	20,522,036

Other Healthcare
	Artisan Development Labs, Inc.		Senior Secured	12.3%	$	466,116	$	408,000	$	408,000	4/1/2023
	Caredox, Inc.		Senior Secured	11.8%	775,417		762,534		762,534		7/1/2022
	GoForward, Inc.		Senior Secured	11.5%	6,181,238		5,735,573		5,735,573		9/1/2023
	GoForward, Inc.		Senior Secured	11.5%	3,094,971		3,004,838		3,004,838		6/1/2024
	GoForward, Inc. Subtotal				9,276,209		8,740,411		8,740,411
	Grin, Inc.		Senior Secured	12.0%	989,140		944,177		944,177		10/1/2023
	Grin, Inc.		Senior Secured	12.0%	494,743		484,898		484,898		1/1/2024
	Grin, Inc. Subtotal				1,483,883		1,429,075		1,429,075
	Hello Heart Inc.		Senior Secured	11.0%	1,974,944		1,930,315		1,930,315		6/1/2025


	Hello Heart Inc.		Senior Secured	11.0%		1,164,939		1,115,829		1,115,829		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		1,974,944		1,796,427		1,796,427		6/1/2024
	Hello Heart Inc.		Senior Secured	11.0%		932,214		919,531		919,531		4/1/2023
	Hello Heart Inc.		Senior Secured	11.0%		742,816		730,145		730,145		11/1/2023
	Hello Heart Inc. Subtotal					6,789,857		6,492,247		6,492,247
	HumanAPI, Inc.		Senior Secured	11.8%		421,960		416,785		416,785		1/1/2023
	HumanAPI, Inc.		Senior Secured	11.8%		1,129,747		1,086,210		1,086,210		10/1/2022
	HumanAPI, Inc. Subtotal					1,551,707		1,502,995		1,502,995
	Oula Heath, Inc.		Senior Secured	12.0%		742,000		685,839		685,839		2/1/2024
	PeerWell, Inc.		Senior Secured	12.0%		989,722		913,704		913,704		3/1/2024
	Sparta Software Corporation		Senior Secured	11.5%	2.2%	304,794		297,802		297,802		5/1/2022
	Therapydia, Inc.		Senior Secured	12.0%	1.7%	97,822		92,394		92,394		3/1/2023
	Therapydia, Inc.		Senior Secured	12.5%	1.7%	106,892		106,892		106,892		6/1/2023
	Therapydia, Inc. Subtotal					204,714		199,286		199,286
	Tia, Inc.		Senior Secured	11.8%		1,980,051		1,703,424		1,703,424		5/1/2024
	Vessel Health, Inc.		Senior Secured	12.0%		618,622		618,622		618,622		3/1/2024
	Vessel Health, Inc.		Senior Secured	12.0%		618,539		561,586		561,586		3/1/2024
	Vessel Health, Inc. Subtotal					1,237,161		1,180,208		1,180,208
Other Healthcare Total		13.3%				$	25,801,631	$	24,315,525	$	24,315,525

Other Technology
	8E14 Networks		Senior Secured	13.0%		$	296,533	$	296,533	$	296,533	12/1/2023
	8E14 Networks		Senior Secured	13.0%		296,678		213,094		213,094		9/1/2023
	8E14 Networks Subtotal					593,211		509,627		509,627
	8i Corporation		Senior Secured	12.0%		1,476,000		1,378,649		1,378,649		12/1/2023
	Aclima, Inc.		Senior Secured	11.9%		1,089,754		1,004,091		1,004,091		4/1/2022
	Aclima, Inc.		Senior Secured	12.0%		1,979,808		1,731,899		1,731,899		10/1/2023
	Aclima, Inc. Subtotal					3,069,562		2,735,990		2,735,990
	Antitoxin Technologies Inc. ** ^		Senior Secured	11.5%		361,110		344,164		344,164		9/1/2022
	Antitoxin Technologies Inc. ** ^		Senior Secured	12.0%		989,838		843,946		843,946		12/1/2023
	Antitoxin Technologies Inc. Subtotal ** ^					1,350,948		1,188,110		1,188,110
	Apollo Flight Research Inc.		Senior Secured	11.0%		210,893		207,995		207,995		1/1/2023
	Apollo Flight Research Inc.		Senior Secured	11.0%		313,128		304,774		304,774		6/1/2022
	Apollo Flight Research Inc. Subtotal					524,021		512,769		512,769
	ATeam Army, Inc.		Senior Secured	12.0%		1,165,134		1,109,842		1,109,842		4/1/2023
	Beanfields, PBC		Senior Secured	12.5%		564,609		553,012		553,012		3/1/2023
	Beanfields, PBC		Senior Secured	12.5%		789,585		759,532		759,532		3/1/2023
	Beanfields, PBC Subtotal					1,354,194		1,312,544		1,312,544
	Belong Home, Inc.		Senior Secured	12.0%		2,968,459		2,834,624		2,834,624		3/1/2024
	Benson Hill Bio, Inc.		Senior Secured	12.5%		9,883,793		9,205,314		9,205,314		5/1/2024
	Brightside Benefit, Inc.		Senior Secured	12.1%		464,870		446,579		446,579		9/1/2022
	Brightside Benefit, Inc.		Senior Secured	12.4%		774,623		764,814		764,814		3/1/2023
	Brightside Benefit, Inc. Subtotal					1,239,493		1,211,393		1,211,393
	BW Industries, Inc.		Senior Secured	11.8%		1,823,172		1,792,512		1,792,512		6/1/2023
	BW Industries, Inc.		Senior Secured	11.8%		1,770,873		1,642,182		1,642,182		5/1/2023
	BW Industries, Inc. Subtotal					3,594,045		3,434,694		3,434,694
	Content Adjacent, Inc.		Senior Secured	12.0%		1,979,710		1,885,861		1,885,861		6/1/2024
	Coterie Applications, Inc.		Senior Secured	12.5%		988,889		988,888		988,888		3/1/2024
	Coterie Applications, Inc.		Senior Secured	12.5%		989,023		875,966		875,966		9/1/2023
	Coterie Applications, Inc. Subtotal					1,977,912		1,864,854		1,864,854
	DOSH Holdings, Inc.		Senior Secured	—%		700,000		514,745		514,745		*
	Fitplan, Inc. ** ^		Senior Secured	12.5%		1,266,870		1,086,326		1,058,116		*
	Flo Water, Inc.		Senior Secured	11.8%		1,978,592		1,884,544		1,884,544		12/1/2023


Higher Ground Education, Inc.	Senior Secured	12.5%	442,838	436,301	436,301	5/1/2023
Higher Ground Education, Inc.	Senior Secured	12.5%	1,946,804	1,865,641	1,865,641	1/1/2023
Higher Ground Education, Inc.	Senior Secured	12.5%	1,289,010	1,270,861	1,270,861	4/1/2023
Higher Ground Education, Inc.	Senior Secured	12.5%	481,455	473,834	473,834	8/1/2023
Higher Ground Education, Inc. Subtotal			4,160,107	4,046,637	4,046,637
Hint, Inc.	Senior Secured	12.0%	4,944,981	4,446,656	4,446,656	6/1/2023
Hint, Inc.	Senior Secured	11.0%	727,671	706,141	706,141	8/1/2021
Hint, Inc. Subtotal			5,672,652	5,152,797	5,152,797
Jiko Group, Inc.	Senior Secured	12.0%	3,463,686	3,318,065	3,318,065	6/1/2023
Kogniz, Inc.	Senior Secured	12.8%	220,052	203,327	203,327	3/1/2022
Lambda School, Inc.	Senior Secured	11.3%	4,948,041	4,701,574	4,701,574	7/1/2023
Lambda School, Inc.	Senior Secured	11.3%	2,474,403	2,474,403	2,474,403	8/1/2023
Lambda School, Inc. Subtotal			7,422,444	7,175,977	7,175,977
Make School, Inc.	Senior Secured	11.3%	291,677	287,406	287,406	8/1/2021
Natomas Labs, Inc.	Senior Secured	12.3%	2,969,286	2,732,463	2,732,463	2/1/2024
Nevada Nanotech Systems, Inc.	Senior Secured	12.0%	222,226	217,658	217,658	6/1/2021
NewGlobe Schools, Inc. ** ^	Senior Secured	12.5%	2,769,725	2,695,080	2,695,080	8/1/2022
NewGlobe Schools, Inc. ** ^	Senior Secured	12.5%	3,459,803	3,315,571	3,315,571	8/1/2023
NewGlobe Schools, Inc. ** ^	Senior Secured	12.5%	4,946,802	4,825,816	4,825,816	12/1/2023
NewGlobe Schools, Inc. Subtotal ** ^			11,176,330	10,836,467	10,836,467
Noteleaf, Inc.	Senior Secured	12.5%	2,277,124	2,161,761	1,028,982	*
OnePointOne, Inc.	Senior Secured	12.0%	1,960,000	1,783,411	1,783,411	2/1/2024
Opya, Inc.	Senior Secured	12.0%	989,171	958,214	958,214	11/1/2023
Ozy Media, Inc.	Senior Secured	12.8%	2,965,665	2,775,884	2,775,884	6/1/2023
Ozy Media, Inc.	Senior Secured	12.8%	1,483,826	1,424,222	1,424,222	9/1/2023
Ozy Media, Inc.	Senior Secured	12.8%	1,977,806	1,977,807	1,977,807	6/1/2023
Ozy Media, Inc.	Senior Secured	12.8%	2,470,510	2,383,782	2,383,782	6/1/2023
Ozy Media, Inc. Subtotal			8,897,807	8,561,695	8,561,695
Percepto, Inc.	Senior Secured	12.2%	1,799,336	1,721,548	1,721,548	4/1/2023
Pitzi, Ltd. ** ^	Senior Secured	12.0%	482,870	376,812	376,812	11/1/2023
Pitzi, Ltd. ** ^	Senior Secured	12.0%	1,483,727	1,435,741	1,435,741	4/1/2024
Pitzi, Ltd. Subtotal ** ^			1,966,597	1,812,553	1,812,553
Plant Prefab, Inc.	Senior Secured	11.0%	1,045,516	999,473	999,473	8/1/2022
Platform Science, Inc.	Senior Secured	11.5%	3,960,517	3,760,439	3,760,439	10/1/2023
Platform Science, Inc.	Senior Secured	12.0%	623,171	601,043	601,043	2/1/2022
Platform Science, Inc. Subtotal			4,583,688	4,361,482	4,361,482
Plethora, Inc.	Senior Secured	11.5%	997,774	945,362	945,362	7/1/2022
Privoro Holdings, Inc.	Senior Secured	12.0%	1,979,606	1,836,871	1,836,871	4/1/2024
Reali Inc.	Senior Secured	12.5%	3,956,094	3,775,549	3,775,549	9/1/2023
Romaine Empire, Inc.	Senior Secured	12.3%	5,454,020	5,227,539	5,227,539	7/1/2023
Saltbox, Inc.	Senior Secured	12.3%	423,968	408,719	408,719	6/1/2023
SMS OPCO LLC	Senior Secured	8.0%	36,875	18,125	18,125	*
Strong Arm Technologies, Inc.	Senior Secured	12.0%	209,338	207,281	207,281	5/1/2021
Sustainable Living Partners, LLC	Senior Secured	12.5%	4,479,984	3,999,116	3,999,116	8/1/2023
Theatro Labs, Inc.	Senior Secured	12.0%	888,982	873,903	873,903	8/1/2022
TIER Mobility GmbH ** ^	Senior Secured	12.0%	8,905,182	8,561,180	8,561,180	4/1/2023
TomoCredit, Inc.	Senior Secured	12.5%	395,819	395,819	395,819	9/1/2023
TomoCredit, Inc.	Senior Secured	12.5%	593,454	540,134	540,134	9/1/2023
TomoCredit, Inc. Subtotal			989,273	935,953	935,953
Veev Group, Inc.	Senior Secured	12.5%	1,235,419	1,122,426	1,122,426	6/1/2023
Veev Group, Inc.	Senior Secured	12.5%	3,707,038	3,648,364	3,648,364	6/1/2023
Veev Group, Inc.	Senior Secured	12.5%	432,783	424,481	424,481	12/1/2021
Veev Group, Inc. Subtotal			5,375,240	5,195,271	5,195,271


	Velo Holdings Limited		Senior Secured	12.0%	2,471,720		2,252,248		1,985,209		*
	Virtuix Holdings, Inc.		Senior Secured	12.3%	141,134		139,438		117,049		4/1/2022
	Welcome Tech, Inc.		Senior Secured	10.5%	578,778		545,308		545,308		5/1/2022
	Wheels Labs, Inc.		Senior Secured	12.5%	3,115,612		3,051,198		3,051,198		8/1/2022
	Wine Plum, Inc.		Senior Secured	12.5%	723,778		701,625		701,625		9/1/2022
	World Wrapps II, Inc.		Senior Secured	12.0%	494,667		342,954		342,954		6/1/2024
Other Technology Total		69.1%			$	135,461,668	$	128,018,460	$	126,568,043

Security
	ArecaBay, Inc.		Senior Secured	11.0%	$	1,485,917	$	1,417,675	$	1,417,675	8/1/2023
	Axonius, Inc.		Senior Secured	12.0%	164,208		161,820		161,820		9/1/2021
	Nok Nok Labs, Inc.		Senior Secured	12.5%	540,071		533,246		533,246		6/1/2022
	Popily, Inc.		Senior Secured	12.5%	989,137		867,450		867,450		12/1/2023
	Popily, Inc.		Senior Secured	12.5%	1,484,125		1,484,125		1,484,125		12/1/2023
	Popily, Inc. Subtotal				2,473,262		2,351,575		2,351,575
	Safetrust Holdings, Inc.		Senior Secured	12.5%	249,930		186,010		186,010		8/1/2021
Security Total		2.5%			$	4,913,388	$	4,650,326	$	4,650,326

Semiconductors & Equipment
	ETA Compute, Inc.		Senior Secured	12.0%	$	596,190	$	585,915	$	585,915	11/1/2021
Semiconductors & Equipment Total		0.3%			$	596,190	$	585,915	$	585,915

Software
	Afero, Inc.		Senior Secured	12.3%	$	2,474,202	$	2,127,019	$	2,127,019	1/1/2024
	Airbrake Technologies, Inc.		Senior Secured	12.5%	989,466		898,541		898,541		10/1/2023
	ArborMetrix, Inc.		Senior Secured	12.5%	1,482,031		1,424,994		1,424,994		9/1/2023
	ArborMetrix, Inc.		Senior Secured	12.5%	741,595		721,872		721,872		9/1/2023
	ArborMetrix, Inc. Subtotal				2,223,626		2,146,866		2,146,866
	BackboneAI Inc.		Senior Secured	12.3%	494,779		483,764		483,764		6/1/2023
	BackboneAI Inc.		Senior Secured	12.3%	494,537		435,999		435,999		6/1/2023
	BackboneAI Inc. Subtotal				989,316		919,763		919,763
	Blockdaemon, Inc.		Senior Secured	11.3%	72,916		70,543		70,543		8/1/2021
	Blockdaemon, Inc.		Senior Secured	11.3%	156,750		153,047		153,047		6/1/2022
	Blockdaemon, Inc. Subtotal				229,666		223,590		223,590
	Canary Technologies Corporation		Senior Secured	11.5%	247,338		234,633		234,633		6/1/2023
	Censia Inc.		Senior Secured	11.0%	751,876		723,062		723,062		10/1/2022
	Cloudleaf, Inc.		Senior Secured	12.0%	739,000		724,597		724,597		9/1/2024
	Cloudleaf, Inc.		Senior Secured	12.0%	1,445,065		1,360,260		1,360,260		8/1/2023
	Cloudleaf, Inc. Subtotal				2,184,065		2,084,857		2,084,857
	Dynamics, Inc.		Senior Secured	12.5%	2,208,811		2,106,703		2,106,703		8/1/2021
	Eskalera, Inc.		Senior Secured	10.5%	902,496		877,642		877,642		3/1/2023
	ICX Media, Inc.		Senior Secured	12.5%	247,171		242,813		242,813		7/1/2023
	ICX Media, Inc.		Senior Secured	12.5%	298,886		285,701		285,701		5/1/2022
	ICX Media, Inc.		Senior Secured	12.5%	240,098		236,153		236,153		5/1/2023
	ICX Media, Inc. Subtotal				786,155		764,667		764,667
	Invoice2Go, Inc.		Senior Secured	12.0%	660,026		654,481		654,481		7/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%	989,486		944,616		944,616		6/1/2024
	Invoice2Go, Inc.		Senior Secured	12.0%	989,150		806,149		806,149		3/1/2024
	Invoice2Go, Inc.		Senior Secured	12.0%	988,822		957,755		957,755		6/1/2023
	Invoice2Go, Inc.		Senior Secured	12.0%	902,702		892,679		892,679		3/1/2023
	Invoice2Go, Inc.		Senior Secured	12.0%	531,244		498,925		498,925		3/1/2022
	Invoice2Go, Inc.		Senior Secured	12.0%	783,778		776,169		776,169		11/1/2022
	Invoice2Go, Inc. Subtotal				5,845,208		5,530,774		5,530,774
	Ipolipo, Inc.		Senior Secured	12.0%	2,066,199		1,943,196		1,476,836		6/1/2022
	Lucideus, Inc.		Senior Secured	12.0%	436,842		411,722		411,722		2/1/2023
	Medable, Inc.		Senior Secured	12.0%	1,746,992		1,657,497		1,657,497		2/1/2023
	Medable, Inc.		Senior Secured	12.0%	873,608		862,217		862,217		2/1/2023
	Medable, Inc. Subtotal				2,620,600		2,519,714		2,519,714
	Metawave Corporation		Senior Secured	12.0%	608,751		595,704		595,704		7/1/2022


	Migo Money, Inc. ** ^		Senior Secured	12.3%		324,019		313,653		313,653		12/1/2021
	Migo Money, Inc. ** ^		Senior Secured	12.5%		266,341		266,341		266,341		3/1/2022
	Migo Money, Inc. Subtotal ** ^					590,360		579,994		579,994
	OrderGroove, Inc.		Senior Secured	12.0%		4,755,473		4,424,662		4,424,662		4/1/2024
	Owl Cameras, Inc.		Senior Secured	18.0%		605,050		310,170		308,414		*
	Pixlee, Inc.		Senior Secured	12.3%		1,484,210		1,403,678		1,403,678		1/1/2024
	PlushCare, Inc.		Senior Secured	11.8%		447,140		441,430		441,430		5/1/2022
	PlushCare, Inc.		Senior Secured	11.8%		595,693		579,013		579,013		5/1/2022
	PlushCare, Inc. Subtotal					1,042,833		1,020,443		1,020,443
	Resilio, Inc.		Senior Secured	12.8%		28,407		27,431		27,431		3/1/2021
	Resilio, Inc.		Senior Secured	12.8%		46,851		46,850		46,850		5/1/2021
	Resilio, Inc. Subtotal					75,258		74,281		74,281
	Sonatus, Inc		Senior Secured	12.5%		989,255		860,419		860,419		9/1/2023
	Splitwise, Inc.		Senior Secured	12.3%		407,224		393,457		393,457		12/1/2022
	Swiftly Systems, Inc.		Senior Secured	11.5%		4,951,149		3,962,224		3,962,224		10/1/2024
	Swivel, Inc.		Senior Secured	12.0%		173,702		173,702		173,702		10/1/2022
	Swivel, Inc.		Senior Secured	12.0%		159,432		152,178		152,178		8/1/2022
	Swivel, Inc. Subtotal					333,134		325,880		325,880
	Trendalytics Innovation Labs, Inc.		Senior Secured	12.8%		189,070		177,064		156,140		6/1/2022
	Truthset, Inc.		Senior Secured	10.5%		360,505		360,505		360,505		5/1/2023
	Truthset, Inc.		Senior Secured	10.5%		327,294		308,736		308,736		2/1/2023
	Truthset, Inc. Subtotal					687,799		669,241		669,241
	Venuetize, Inc.		Senior Secured	12.3%		130,209		123,167		123,167		4/1/2022
	Workspot, Inc.		Senior Secured	12.0%		246,296		239,558		239,558		9/1/2021
	Workspot, Inc.		Senior Secured	12.0%		518,863		493,458		493,458		8/1/2022
	Workspot, Inc.		Senior Secured	12.0%		565,294		555,453		555,453		10/1/2022
	Workspot, Inc.		Senior Secured	12.0%		2,969,690		2,792,441		2,792,441		11/1/2023
	Workspot, Inc. Subtotal					4,300,143		4,080,910		4,080,910
Software Total		22.9%				$	46,105,784	$	42,514,043	$	42,025,003

Technology Services
	iLearningEngines Inc.		Senior Secured	11.5%		$	7,918,225	$	6,762,096	$	6,762,096	12/1/2023
	Klar Holdings Limited ** ^		Senior Secured	14.2%	4.0%	248,885		235,789		235,789		7/1/2023
	Klar Holdings Limited ** ^		Senior Secured	12.5%		188,627		161,586		161,586		10/1/2022
	Klar Holdings Limited Subtotal ** ^					437,512		397,375		397,375
	Leap Services, Inc.		Senior Secured	12.0%		314,353		305,005		305,005		6/1/2022
	Lifit, Inc. ** ^		Senior Secured	12.0%		345,793		329,478		329,478		8/1/2022
	Lifit, Inc. ** ^		Senior Secured	12.0%		376,772		371,984		371,984		10/1/2022
	Lifit, Inc. Subtotal ** ^					722,565		701,462		701,462
	Loansnap Holdings Inc. **		Senior Secured	11.0%		2,236,556		2,118,234		1,913,394		12/1/2022
	Relimetrics, Inc.		Senior Secured	11.3%		173,675		169,806		169,806		1/1/2022
	Riffyn, Inc.		Senior Secured	11.5%		1,980,521		1,892,277		1,892,277		2/1/2024
	Solugen, Inc.		Senior Secured	11.0%		2,107,961		2,007,714		2,007,714		1/1/2023
	Solugen, Inc.		Senior Secured	11.0%		1,054,189		1,041,250		1,041,250		1/1/2023
	Solugen, Inc.		Senior Secured	11.0%		1,054,706		1,038,103		1,038,103		1/1/2023
	Solugen, Inc. Subtotal					4,216,856		4,087,067		4,087,067
	Thrive Financial, Inc. **		Senior Secured	9.3%		247,981		247,981		247,981		11/1/2023
	Thrive Financial, Inc. **		Senior Secured	11.5%		752,761		724,584		724,584		10/1/2022
	Thrive Financial, Inc. Subtotal **					1,000,742		972,565		972,565
	Zanbato, Inc.		Senior Secured	11.0%		3,465,417		3,347,061		3,347,061		9/1/2023
	Zeel Networks, Inc.		Senior Secured	11.0%		2,049,602		2,002,173		1,837,535		3/1/2022
Technology Services Total		12.2%				$	24,516,024	$	22,755,121	$	22,385,643

Wireless
	AirVine Scientific, Inc.		Senior Secured	12.0%		$	90,366	$	86,490	$	86,490	9/1/2022
	AirVine Scientific, Inc.		Senior Secured	12.0%		90,429		88,729		88,729		9/1/2022
	AirVine Scientific, Inc. Subtotal					180,795		175,219		175,219
	Parallel Wireless, Inc.		Senior Secured	11.8%		6,428,736		6,168,641		6,168,641		6/1/2023


	Parallel Wireless, Inc.		Senior Secured	11.8%	3,215,116		3,164,764		3,164,764		8/1/2023
	Parallel Wireless, Inc.		Senior Secured	11.8%	3,215,575		3,162,405		3,162,405		9/1/2023
	Parallel Wireless, Inc. Subtotal				12,859,427		12,495,810		12,495,810
Wireless Total		6.9%			$	13,040,222	$	12,671,029	$	12,671,029
Grand Total		169.4%			$	345,562,976	$	323,011,028	$	310,522,149

*As of December 31, 2020, loans with a cost basis of $20.8 million and a fair value of $9.2 million were classified as non-accrual. These loans have been accelerated from their original maturity and are due in their entirety. During the period for which these loans have been on non-accrual status, no income has been recognized.

**Indicates assets that the Fund deems “non-qualifying assets." As of December 31, 2020, 11.0% of the Fund’s total assets represented non-qualifying assets. Under Section 55(a) of the 1940 Act, the Fund is prohibited from acquiring any additional non-qualifying assets unless, at the time of acquisition, certain specified qualifying assets (e.g., securities issued by an "eligible portfolio company," as defined in Section 2(a)(46)) represent at least 70% of its total assets. As part of this calculation, the numerator consists of the value of the Fund's investments in all eligible portfolio companies, and the denominator consists of total assets less those assets described in Section 55(a)(7) of the 1940 Act.

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

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

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

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

CONDENSED SCHEDULES OF DERIVATIVE INSTRUMENTS (UNAUDITED)

AS OF JUNE 30, 2021 AND DECEMBER 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	As of June 30, 2021
				Notional Amount		Fair Value		Upfront payments/receipts		Unrealized appreciation/(depreciation) (a)

Interest Rate Swap and Floor Agreements

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 2.520%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	$	35,000,000	$	(404,747)	$	—	$	(404,747)

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 1.899%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	22,000,000		(188,786)		—		(188,786)

Interest Rate Collar

Floating interest rate of USD-LIBOR-BBA with a cap rate of 1.15%, to be received monthly	Floating interest rate of USD-LIBOR-BBA with a floor rate of 0.17% to be paid monthly	MUFG Union Bank, N.A.	6/30/2025	20,000,000		131,239		—		131,239

Floating interest rate of USD-LIBOR-BBA with a cap rate of 1.00% to be received monthly	Floating interest rate of USD-LIBOR-BBA with a floor rate of 0.35% to be paid monthly	Zions Bancorporation, N.A.	3/18/2024	30,000,000		(99,070)		—		(99,070)
										.
Total				$	107,000,000	$	(561,364)	$	—	$	(561,364)


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

Interest Rate Swap and Floor Agreements

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 2.520%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	$	35,000,000	$	(818,923)	$	—	$	(818,923)

Floating interest rate greater of USD-LIBOR-BBA or 0.00%, to be received monthly	Fixed interest rate 1.899%, to be paid monthly	MUFG Union Bank, N.A.	12/20/2021	22,000,000		(380,548)		—		(380,548)

Interest Rate Collar

Floating interest rate of USD-LIBOR-BBA with a cap rate of 1.15%, to be received monthly	Floating interest rate of USD-LIBOR-BBA with a floor rate of 0.17% to be paid monthly	MUFG Union Bank, N.A.	6/30/2025	20,000,000		(54,743)		—		(54,743)

Total				$	77,000,000	$	(1,254,214)	$	—	$	(1,254,214)

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

See notes to condensed financial statements (unaudited).

VENTURE LENDING & LEASING IX, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

1.ORGANIZATION AND OPERATIONS OF THE FUND

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

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

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

In the Manager’s opinion, the accompanying condensed interim financial statements (hereafter referred to as “financial statements”) include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of financial position and results of operations for interim periods. Certain information and note disclosures normally included in audited annual financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been omitted; however, the Fund believes that the disclosures made are adequate to make the information presented not misleading. The interim results for the six months ended June 30, 2021 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, 2020.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

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

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and money market mutual funds with maturities of 90 days or less. Money market mutual funds held as cash equivalents are valued at their most recently traded net asset value. Within cash and cash equivalents, as of June 30, 2021, the Fund held 5,492,581 units in the Blackrock Treasury Trust Institutional Fund valued at $1 per unit at a yield of 0.01%, which represented 2.4% of the net assets of the Fund. Within cash and cash equivalents, as of December 31, 2020, the Fund held 12,497,243 units in the Blackrock Treasury Trust Institutional Fund valued at $1 per unit at a yield of 0.01% - 0.02%, which represented 6.8% of the net assets of the Fund.

Interest Income

Interest income on loans is recognized on an accrual basis using the effective interest method including amounts resulting from the accretion of discount on loans 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 accreted over the life of the loan.

Realized Gains and Losses from Loans

Realized gains or 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 June 30, 2021 and December 31, 2020, the financial statements included nonmarketable investments of $408.0 million and $310.5 million, respectively, (or 96.7% and 94.8% of total assets, respectively), with the fair values determined by the Manager in the absence of readily determinable market values. Because of the inherent uncertainty of these valuations, estimated fair values of such investments may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material. Below is the information used by the Manager in making these estimates.

Loans

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

Non-Accrual Loans

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

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

As of June 30, 2021 and December 31, 2020, loans with a cost basis of $24.7 million and $20.8 million and a fair value of $12.7 million and $9.2 million, respectively were classified as non-accrual.

Warrants and Equity Securities

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

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

Volatility, or the amount of uncertainty or risk about the size of the changes in the warrant price, is based on an index of publicly traded companies grouped by industry and which are similar in nature to the underlying portfolio companies issuing the warrant (“Industry Index”). The volatility assumption for each Industry Index is based on the average volatility for individual public companies within the portfolio company’s industry for a period of time approximating the expected life of the warrants. A hypothetical increase in the volatility of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the fair 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 June 30, 2021 and December 31, 2020, the Fund assumed the average duration of a warrant is 4.0 years. The effect of a hypothetical increase in the estimated initial term of the warrants used in the modified Black-Scholes option pricing model would have the effect of increasing the fair value of the warrants. However, the estimated initial term of the warrant is one factor, of many, used in the valuation of warrants, and by itself does not have a significant impact on the results of operations.

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

Deferred Bank Fees

Deferred bank fees incurred in conjunction with borrowings under the Fund's debt facility are stated at initial cost. These costs are amortized over the term of the facility.

Other Assets and Liabilities

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

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

Commitment Fees

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

Deferred Bank Fees

The deferred bank fees and costs associated with the debt facility are stated at initial cost in the Condensed Statements of Assets and Liabilities and are being amortized over the estimated life of the facility, which currently matures on March 18, 2024. The amortization of these costs is recorded as interest expense in the Condensed Statements of Operations.

Derivative Instruments

The Fund uses derivative instruments to manage its exposure to changes in interest rates on expected borrowings under its debt facility, as the Fund originates fixed rate loans (see Note 8).

Derivative instruments are primarily valued on the basis of quotes obtained from banks, brokers and dealers and adjusted for counterparty risk and the optionality of the interest rate terms. The valuation of the derivative instruments also considers the future expected interest rates on the notional principal balance remaining which is comparable to what a prospective acquirer would pay on the measurement date. Valuation pricing models consider inputs such as forward rates, anticipated interest rate volatility relating to the reference rate, as well as time value and other factors underlying derivative instruments.

The Fund is a party to a master netting arrangement with MUFG Union Bank, N.A. and Zions Bancorporation, N.A., however, the Fund has elected not to offset assets and liabilities under these arrangements for financial statement presentation purposes. Contracts are recorded at gross fair value in either derivative assets or derivative liabilities in the Condensed Statements of Assets and Liabilities, depending on whether the fair value of the contract is in favor of the Fund or the counterparty. The changes in fair value are recorded in net change in unrealized gain (loss) from derivative instruments in the Condensed Statements of Operations and the quarterly interest received or paid on the contract, if any, is recorded in net realized gain (loss) from derivative instruments in the Condensed Statements of Operations.

The interest rate swap and floor instruments are contractually scheduled to terminate on December 20, 2021. The interest rate collar instruments with MUFG Union Bank, N.A. and Zions Bancorporation, N.A. are contractually scheduled to terminate on June 30, 2025 and March 18, 2024, respectively.

3. FAIR VALUE DISCLOSURES

The Fund provides asset-based financing primarily to start-up and emerging growth venture-backed companies pursuant to commitments whereby the Fund agrees to finance assets and provide working or growth capital up to a specified amount for the term of the commitment, upon the terms and subject to the conditions specified by such commitment. Even though these loans are generally secured by the assets of the borrowers, the Fund in most cases is subject to the credit risk of such companies. As of June 30, 2021, the Fund’s investments in loans were primarily to companies based within the United States and were diversified among borrowers in the industry segments shown in the Condensed Schedules of Investments. All loans are senior to unsecured creditors and other secured creditors, unless otherwise 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 loan investments made by the Fund to borrowing portfolio companies, Management determines fair value (or estimated exit value) based on a hypothetical market, and several factors related to each borrower.

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

The following tables show the weighted-average interest rate of the performing loan and all loans.


Performing Loans	For the Three Months Ended June 30, 2021		For the Three Months Ended June 30, 2020		For the Six Months Ended June 30, 2021		For the Six Months Ended June 30, 2020
Weighted-Average Interest Rate - Cash	14.61	%	12.70	%	14.37	%	14.31	%
Weighted Average Interest Rate - Non-Cash	5.16	%	3.13	%	4.68	%	3.51	%
Weighted-Average Interest Rate	19.77	%	15.83	%	19.05	%	17.82	%

All Loans	For the Three Months Ended June 30, 2021		For the Three Months Ended June 30, 2020		For the Six Months Ended June 30, 2021		For the Six Months Ended June 30, 2020
Weighted-Average Interest Rate - Cash	14.60	%	12.24	%	14.30	%	13.89	%
Weighted Average Interest Rate - Non-Cash	5.02	%	3.01	%	4.55	%	3.39	%
Weighted-Average Interest Rate	19.62	%	15.25	%	18.85	%	17.28	%

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

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

All loans as of June 30, 2021 and December 31, 2020 were pledged as collateral for the debt facility, and the Fund’s borrowings are generally collateralized by all assets of the Fund. As of June 30, 2021 and December 31, 2020, the Fund had unexpired unfunded commitments to borrowers of $82.0 million and $83.2 million, respectively.

Valuation Hierarchy

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

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


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

There were no transfers in and out of Level 1, 2, or 3 during the six months ended June 30, 2021 and 2020.

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 derivative instruments are based on quotes from the market makers that derive fair values from market data, and therefore, is classified as Level 2. The Fund’s borrowings under the debt facility are also classified as Level 2, because the carrying values of the borrowings are based on rates that are observable at commonly quoted intervals, which are Level 2 inputs, and that approximate fair values. The Fund’s loan transactions are individually negotiated and unique, and because there is little to no market in which these assets trade, the inputs for these assets are valued using estimated exit values. As a result, the Fund's loan investments 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 June 30, 2021 and December 31, 2020. 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

Loan Investments

Fair Values at June 30, 2021

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages(a) / Amounts & Ranges

Biotechnology

8,414,447

Hypothetical market analysis

Hypothetical market coupon rate

14% (12% - 15%)

Computers & Storage

19,850,379

Hypothetical market analysis

Hypothetical market coupon rate

15% (14% - 15%)

Enterprise Networking

4,528,630

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$6,800,867*

1%

Internet

34,153,206

Hypothetical market analysis

Hypothetical market coupon rate

15% (13% - 25%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$1,604,712 ($664,627 - $1,663,837)

0% (0% - 1%)

Medical Devices

20,768,722

Hypothetical market analysis

Hypothetical market coupon rate

17% (13% - 32%)

Investment Type - Level 3

Loan Investments

Fair Values at June 30, 2021

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages(a) / Amounts & Ranges

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$12,630,052*

1%

Other Healthcare

38,787,604

Hypothetical market analysis

Hypothetical market coupon rate

16% (13% - 24%)

Other Technology

198,370,317

Hypothetical market analysis

Hypothetical market coupon rate

19% (12% - 46%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$1,781,745 ($0 - $2,351,766)

1% (0% - 1%)

Security

2,861,265

Hypothetical market analysis

Hypothetical market coupon rate

16% (14% - 99%)

Semiconductors & Equipment

276,653

Hypothetical market analysis

Hypothetical market coupon rate

16% *

Software

44,534,429

Hypothetical market analysis

Hypothetical market coupon rate

17% (13% - 37%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$867,235*

1%

Technology Services

23,063,034

Hypothetical market analysis

Hypothetical market coupon rate

17% (13% - 22%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$2,268,051*

1%

Wireless

12,440,391

Hypothetical market analysis

Hypothetical market coupon rate

14% (14% - 17%)

Total loan investments

408,049,077

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

* There is only one loan within the industry.

Investment Type - Level 3

Loan Investments

Fair Values at December 31, 2020

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages(a)/Amount & Ranges

Biotechnology

6,365,901

Hypothetical market analysis

Hypothetical market coupon rate

15% (14% - 15%)

Computers & Storage

16,731,094

Hypothetical market analysis

Hypothetical market coupon rate

15% (14% - 15%)

Enterprise Networking

5,279,909

Hypothetical market analysis

Hypothetical market coupon rate

19%*

Internet

28,421,725

Hypothetical market analysis

Hypothetical market coupon rate

15% (13% - 25%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$580,327 ($12500 - $669,324)

1% (0% - 1%)

Medical Devices

20,522,036

Hypothetical market analysis

Hypothetical market coupon rate

17% (13% - 32%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$10,329,931*

Other Healthcare

24,315,525

Hypothetical market analysis

Hypothetical market coupon rate

15% (14% - 24%)

Other Technology

126,568,043

Hypothetical market analysis

Hypothetical market coupon rate

16% (14% - 32%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$3,247,663 ($18,125 - $4,798,121)

1% (0% - 1%)

Security

4,650,326

Hypothetical market analysis

Hypothetical market coupon rate

18% (14% - 99%)

Semiconductors & Equipment

585,915

Hypothetical market analysis

Hypothetical market coupon rate

16%*

Software

42,025,003

Hypothetical market analysis

Hypothetical market coupon rate

18% (13% - 26%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$1,910,350 ($208,725 - $2,343,019)

Technology Services

22,385,643

Hypothetical market analysis

Hypothetical market coupon rate

17% (13% - 23%)

Income Approach

Expected amount and timing of cash flow payment

Discount Rate

$2,453,039 ($2,402,281 - $2,501,785)

Wireless

12,671,029

Hypothetical market analysis

Hypothetical market coupon rate

14% (14% - 16%)

Investment Type - Level 3

Loan Investments

Fair Values at December 31, 2020

Valuation Techniques / Methodologies

Unobservable Inputs

Weighted Averages(a)/Amount & Ranges

Total Loan Investments

310,522,149

(a) The weighted-average hypothetical market coupon rates were calculated using the 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 June 30, 2021 and December 31, 2020 measured at fair value on a recurring basis:


As of June 30, 2021
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	408,049,077	$	408,049,077
Derivative assets	—		131,239		—		131,239
Cash equivalents	5,492,581		—		—		5,492,581
Total assets	$	5,492,581	$	131,239	$	408,049,077	$	413,672,897

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	184,500,000	$	—	$	184,500,000
Derivative liabilities	—		692,603		—		692,603
Total liabilities	$	—	$	185,192,603	$	—	$	185,192,603


As of December 31, 2020
ASSETS:	Level 1		Level 2		Level 3		Total
Loans†	$	—	$	—	$	310,522,149	$	310,522,149
Cash equivalents	12,497,243		—		—		12,497,243
Total assets	$	12,497,243	$	—	$	310,522,149	$	323,019,392

LIABILITIES:	Level 1		Level 2		Level 3		Total
Borrowings under debt facility	$	—	$	140,000,000	$	—	$	140,000,000
Derivative liabilities	—		1,254,214		—		1,254,214
Total liabilities	$	—	$	141,254,214	$	—	$	141,254,214

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

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


	For the Three Months Ended June 30, 2021						For the Six Months Ended June 30, 2021
	Loans		Stock		Warrants			Loans		Stock		Warrants

Beginning balance	$	355,521,027	$	—	$	—		$	310,522,149	$	—	$	—
Acquisitions and originations	95,300,000		1,250,000		5,454,198			168,925,000		1,621,658		14,458,250
Principal reductions	(37,510,783)		—		—			(63,597,856)		—		—
Accretion of discount on loans	(4,717,553)		—		—			(8,000,701)		—		—
Distributions to shareholder	—		(1,250,000)		(5,454,198)			—		(1,621,658)		(14,458,250)


Net change in unrealized gain (loss) from loans	(543,614)		—		—			319,612		—		—
Net realized loss from loans	—		—		—			(119,127)		—		—
Ending balance	$	408,049,077	$	—	$	—		$	408,049,077	$	—	$	—
Net change in unrealized gain (loss) from loans relating to loans still held at period end	$	(472,857)						$	71,601


	For the Three Months Ended June 30, 2020(a)				For the Six Months Ended June 30, 2020(a)
	Loans		Warrants		Convertible Note		Loans		Warrants		Convertible Note

Beginning balance	$	228,875,861	$	—	$	—	$	203,311,245	$	—	$	—
Acquisitions and originations	37,833,333		2,062,555		175,547		97,216,667		6,283,411		175,547
Principal reductions	(4,249,258)		—		—		(31,058,669)		—		—
Accretion of discount on loans	(3,283,148)		—		—		(3,860,743)		—		—
Distributions to shareholder	—		(2,062,555)		(175,547)		—		(6,283,411)		(175,547)


Net change in unrealized gain (loss) from loans	246,869		—		—		(6,184,843)		—		—

Ending balance	$	259,423,657	$	—	$	—	$	259,423,657	$	—	$	—
Net change in unrealized gain (loss) from loans relating to loans still held at period end	$	246,869					$	(6,184,843)

(a) Certain prior period information has been disclosed to conform to current presentation.

4. EARNINGS PER SHARE

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

5. CAPITAL STOCK

As of both June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020, was $460.0 million. Total contributed capital to the Company as of June 30, 2021 and December 31, 2020 was $351.9 million and $264.5 million, respectively, of which $316.6 million and $243.1 million were contributed to the Fund, respectively.

The chart below shows the distributions of the Fund for the six months ended June 30, 2021 and 2020.


	For the Six Months Ended June 30, 2021		For the Six Months Ended June 30, 2020

Cash distributions	$	33,800,000	$	—
Distributions of equity securities	16,079,908		6,458,958
Total distributions to shareholder	$	49,879,908	$	6,458,958

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

6. DEBT FACILITY

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

On December 5, 2018, the required majority of the Fund’s Board, including a majority of its independent directors, unanimously determined it to be in the best interests of the Fund and its sole shareholder, the Company, to provide the Fund with maximum leverage flexibility, and approved the application to the Fund of a minimum asset coverage ratio of 150%, pursuant to Section 61(a)(2) of the 1940 Act, which would double the Fund’s borrowing limits, subject to approval by the Company via the pass-through voting of its members. Thereafter, at a special meeting of shareholders held on April 24, 2019, the Fund’s sole shareholder, the Company, approved the proposal to apply the reduced asset coverage requirement to the Fund. The 150% asset coverage ratio became effective for the Fund on April 25, 2019. As of June 30, 2021 and December 31, 2020, the Fund’s asset coverage for borrowings was 226% and 231%, respectively.

to request that borrowing availability be increased up to $400.0 million (the “Loan Agreement”), subject to further negotiation and credit approval.

On March 18, 2021, the Fund entered into an Amendment to the Loan and Security Agreement with MUFG Union Bank, N.A., Wells Fargo Securities, LLC, Wells Fargo Bank, N.A. and ING Capital, LLC, with participation from TIAA, FSB, Bank Leumi USA, HSBC Bank USA, N.A., Umpqua Bank, Zions Bancorporation, N.A., doing business as California Bank & Trust, Hitachi Capital America Corp, First Bank, and Bank of Hope, that increased the size of the facility to $350,000,000 and extended the term of the facility (the “Amended Loan Agreement”). An additional $50,000,000 is potentially available to the Fund, subject to further negotiation and credit approval, through an accordion provision.

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 June 30, 2021, the Fund’s outstanding borrowings were entirely based on the LIBOR rate. The facility terminates on March 18. 2024, but can be accelerated in the event of default, such as failure by the Fund to make timely interest or principal payments.

The Fund pays interest on its borrowings and a fee on the unused portion of the facility. Under the Loan Agreement, interest is charged to the Fund based on its borrowings at, pursuant to the election of the Fund, an annual rate equal to either (i) the Reference Rate plus 1.50%, (ii) LIBOR plus 2.50% or (iii) the LIBOR Market Index Rate plus 2.50%. When the Fund is using 50% or more of the maximum amount available under the Loan Agreement, the applicable commitment fee is 0.25% of the unused portion of the loan facility; otherwise, the applicable commitment fee is 0.50% of the unused portion. The Fund pays the unused credit line fee quarterly. As of June 30, 2021 and December 31, 2020, $184.5 million and $140 million, respectively, was outstanding under the facility.

As of June 30, 2021, the LIBOR rate was as follows:


1-Month LIBOR			0.1005%
3-Month LIBOR			0.1458%

Bank fees and other costs of $5.0 million incurred in connection with the acquisition and amendment 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 June 30, 2021 and December 31, 2020, the remaining unamortized fees and costs of $2.4 million and $0.4 million, respectively, are being amortized over the expected life of the facility, which is expected to terminate on March 18, 2024.

The facility is revolving and as such does not have a specified repayment schedule, although advances are secured by the assets of the Fund and thus repayments will be required as assets decline. The facility contains various covenants including financial covenants related to: (i) minimum debt service coverage ratio, (ii) interest coverage ratio, (iii) unfunded commitment ratio, (iv) maximum quarterly loan loss reserve ratio, (v) maximum annual loan loss reserve ratio and (vi) maximum loan loss test. There are also various restrictive covenants, including limitations on: (i) the incurrence of liens, (ii) consolidations, mergers and asset sales and (iii) capital expenditures. As of June 30, 2021 and December 31, 2020, Management is not aware of instances of non-compliance with financial covenants.

The following is the summary of the outstanding facility draws as of June 30, 2021:


	Amount		Maturity Date	All-In Interest Rate(a)

LIBOR Market Index Rate Loan	$	184,500,000	March 18, 2024	Variable based on 1-Month LIBOR rate
Total Outstanding	$	184,500,000

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

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


	Amount		Maturity Date	All-In Interest Rate(a)
LIBOR Market Index Rate Loan	$	140,000,000	December 20, 2021	Variable based on 1-Month LIBOR rate
Total Outstanding	$	140,000,000

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

7. MANAGEMENT FEE

As compensation for its services to the Fund, from the date of the first capital call, May 1, 2018, to March 31, 2019, the Manager received a management fee (“Management Fee”) computed and paid at the end of the quarter at an annual rate of 1.575% of the Company’s committed equity capital (regardless of when or if the capital was called). The Management Fee percentage is 1.575% as of June 30, 2021, based on the following schedule of annual percentages:


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

Management Fees of $1.8 million and $3.6 million were recognized as expenses for the three and six months ended June 30, 2021, respectively. Management fees of $1.8 million and $3.7 million were recognized as expenses for the same respective periods in 2020.

8. DERIVATIVE INSTRUMENTS

The Fund uses derivative instruments to manage its exposure to interest rates on expected borrowings under its debt facility, as the Fund originates fixed rate loans.

Interest Rate Swap and Floor

On February 7, 2019, the Fund entered into an interest rate swap and floor agreement with MUFG Union Bank, N.A. The floor allows the Fund to match the swap with the terms of the variable rate index of the debt facility. The Fund may enter into additional hedging transactions to remain in compliance with the hedging requirements to the debt facility. As of June 30, 2021, the total notional principal amount was $57.0 million.

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

Interest Rate Collar

On June 29, 2020, the Fund entered into an interest rate collar transaction with MUFG Union Bank, N.A. The aggregate notional principal amount of the interest rate collar is $20.0 million, with a cap of 1.1500% and floor of 0.1700% on floating rate based upon a 1-Month LIBOR rate. On February 26, 2021, the Fund entered into an interest rate collar transaction with Zions Bancorpororation, N.A. dba California Bank & Trust. The aggregate notional amount of the interest rate collar is $30.0 million, with a cap of 1.0000% and floor of 0.3500% on floating rate based upon 1-Month LIBOR rate.

The interest rate collar mitigates the Fund's exposure to interest rate fluctuations on variable rate index of the debt facility. The collar establishes a range where the Fund pays the counterparty if the 1-Month LIBOR rate falls below the established floor rate, and the counterparty will pay the Fund if the 1-Month LIBOR rate exceeds the established cap rate. The interest rate collar settles monthly. The interest rate collar transactions with MUFG Union Bank, N.A. and Zions Bancorporation, N.A. are expected to terminate on June 30, 2025 and March 18, 2024, respectively.

The following table shows the Fund's derivative instruments at fair value on the Fund's Condensed Statement of Assets and Liabilities as of June 30, 2021 and December 31, 2020.


	Derivative Assets				Derivative Liabilities
Derivative Instruments	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Interest rate swap and floor	$	—	$	—	$	593,533	$	1,199,471
Interest rate collar	$	131,239	$	—	$	99,070	$	54,743

The following table shows the effect of the Fund's derivative instruments on the Fund's Condensed Statement of Operations:


		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Derivative Instruments	Condensed Statements of Operation Caption	2021		2020		2021		2020
Interest rate swap and floor	Net change in unrealized gain (loss) from derivative instruments	$	303,242	$	159,692	$	605,938	$	(970,903)
Interest rate swap and floor	Net realized loss from derivative instruments	$	(313,548)	$	(254,229)	$	(620,419)	$	(340,288)
Interest rate collar	Net change in unrealized gain (loss) from derivative instruments	$	(19,777)	$	(176,413)	$	86,912	$	(176,414)
Interest rate collar	Net realized loss from derivative instruments	$	(21,835)	$	—	$	(30,666)	$	—

The following table shows the Fund's assets and liabilities related to derivatives by counterparty, net of amounts available for offset under the master netting agreement and net of any collateral received or pledged by the Fund for such assets and liabilities as of June 30, 2021 ad December 31, 2020:


	As of June 30, 2021
Counterparties	Derivative Asset Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash collateral received		Cash Collateral Received		Net Amount (1)
MUFG Union Bank, N.A.	$	131,239	$	(131,239)	$	—	$	—	$	—
Zions Bancorporation, N.A.	—		—		—		—		—
Total	$	131,239	$	(131,239)	$	—	$	—	$	—

	As of June 30, 2021
Counterparties	Derivative Liability Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount (2)
MUFG Union Bank, N.A.	$	(593,533)	$	131,239	$	—	$	—	$	(462,294)
Zions Bancorporation, N.A.	(99,070)		—		—		—		(99,070)
Total	$	(692,603)	$	131,239	$	—	$	—	$	(561,364)

	As of December 31, 2020
Counterparty	Derivative Asset Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash collateral received		Cash Collateral Received		Net Amount (1)
MUFG Union Bank, N.A.	$	—	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—	$	—

	As of December 31, 2020
Counterparty	Derivative Liability Subject to Master Netting Agreement		Derivatives Available for Offset		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount (2)
MUFG Union Bank, N.A.	$	(1,254,214)	$	—	$	—	$	—	$	(1,254,214)
Total	$	(1,254,214)	$	—	$	—	$	—	$	(1,254,214)

(1) Net amount of derivative assets represents the net amount due from the counterparty to the Fund.
(2) Net amount of derivative liabilities represents the net amount due from the Fund to the counterparty.

9. TAX STATUS

The Fund has elected to be treated as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code (the "Code") and operates in a manner to qualify for the tax treatment applicable to RICs. Failing to maintain at least 70% of total assets in "qualifying assets" will result in the loss of BDC status, resulting in losing its favorable tax treatment as a RIC. As of June 30, 2021, the Fund has met the BDC and RIC requirements.

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

Below are tables summarizing the cost of investments for federal income tax purposes and the appreciation and depreciation of the investments reported on the Condensed Schedules of Investments and Condensed Statements of Assets and Liabilities as of June 30, 2021 and December 31, 2020:


Asset	As of June 30, 2021
	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Loans	$	420,218,344	$	—	$	(12,169,266)	$	(12,169,266)
Derivative asset	—		—		131,239		131,239
Total	$	420,218,344	$	—	$	(12,038,027)	$	(12,038,027)

	As of June 30, 2021
Liability	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Derivative liabilities	$	—	$	—	$	(692,603)	$	(692,603)
Total	$	—	$	—	$	(692,603)	$	(692,603)


Asset	As of December 31, 2020
	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Loans	$	323,011,028	$	—	$	(12,488,879)	$	(12,488,879)
Total	$	323,011,028	$	—	$	(12,488,879)	$	(12,488,879)

	As of December 31, 2020
Liability	Cost		Unrealized Appreciation		Unrealized Depreciation		Net Appreciation (Depreciation)
Derivative liabilities	$	—	$	—	$	(1,254,214)	$	(1,254,214)
Total	$	—	$	—	$	(1,254,214)	$	(1,254,214)

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

Book and tax basis differences relating to shareholder dividends and distributions and other permanent book and tax differences are reclassified among the Fund’s capital accounts. In addition, the character of income and gains to be distributed is determined in accordance with income tax regulations that may differ from U.S. GAAP.

The determination of the tax attributes of the Fund’s distributions is made annually as of the end of the Fund’s taxable year and is generally based upon its taxable income for the full taxable year and distributions paid for the full taxable year. As a result, a determination made on a quarterly basis may not be representative of the actual tax attributes of the Fund’s distributions for a full taxable year. As of June 30, 2021, 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, 2021.

The Fund anticipates distributing all distributable earnings by the end of the year. As of June 30, 2021, 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 June 30, 2021, the Fund had no uncertain tax positions and no capital loss carryforwards.

10. UNEXPIRED UNFUNDED COMMITMENTS

As of June 30, 2021 and December 31, 2020, the Fund’s unexpired unfunded commitments to borrowers totaled $82.0 million and $83.2 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 June 30, 2021 and December 31, 2020:


Borrower	Industry	Unexpired Unfunded Commitment as of June 30, 2021		Expiration Date
303 Holdings, Inc.	Technology Services	$	3,000,000	12/31/2021
8E14 Networks	Other Technology	600,000		07/31/2021
Airvine Scientific, Inc.	Wireless	625,000		09/30/2021
Alchera Incorporated	Other Healthcare	1,500,000		01/31/2022
Big Run Studios, Inc.	Software	1,000,000		09/30/2021
Bizly, Inc.	Software	1,000,000		09/30/2021
Brave Care Inc.	Other Technology	1,250,000		10/31/2021
BriteCo LLC	Software	350,000		10/30/2021
Candy Club Holdings, Inc.	Other Technology	2,500,000		10/31/2021
ClipCall, Inc.	Other Technology	500,000		08/15/2021
Content Adjacent, Inc.	Other Technology	500,000		07/31/2021
Coterie Applications, Inc.	Other Technology	7,500,000		01/31/2022
Equestrian Labs, Inc.	Other Technology	750,000		09/30/2021
Exo Imaging	Medical Devices	2,000,000		09/30/2021
Fakespot, Inc.	Other Technology	500,000		01/31/2022
GLO Pharma, Inc.	Biotechnology	2,000,000		10/31/2021


Borrower	Industry	Unexpired Unfunded Commitment as of June 30, 2021		Expiration Date
GoForward, Inc.	Other Healthcare	3,125,000		07/31/2021
Grayce, Inc.	Other Healthcare	1,500,000		12/31/2021
Hello Heart, Inc.	Other Healthcare	2,000,000		09/30/2021


HumanAPI, Inc.	Other Healthcare	1,000,000		12/01/2021
iLearningEngines Inc.	Technology Services	2,000,000		07/31/2021

Level Home, Inc.	Other Technology	10,000,000		08/25/2021
Mavenform, Inc.	Other Technology	2,000,000		04/30/2022
MeshPlusPlus, Inc.	Wireless	250,000		10/30/2021

NanoGriptech Inc.	Other Technology	750,000		10/31/2021
Natomas Labs, Inc.	Other Technology	1,500,000		08/15/2021
Norbert Health, Inc.	Medical Devices	1,000,000		01/31/2022
Oula Health, Inc.	Other Healthcare	750,000		11/30/2021
Peerwell, Inc.	Other Healthcare	500,000		07/30/2021
Proper Labs, Inc.	Internet	1,500,000		10/30/2021
Reali Inc.	Other Technology	12,000,000		09/30/2021
Starface World, Inc.	Internet	2,000,000		11/15/2021
Swiftly Systems, Inc.	Software	2,500,000		08/30/2021
Terragon, Inc.	Software	500,000		10/31/2021
The Safe and Fair Food Company LLC	Other Technology	1,000,000		07/31/2021
Therapydia, Inc.	Other Healthcare	1,500,000		04/30/2022
Tia, Inc.	Other Healthcare	4,500,000		10/31/2021
Wine Plum, Inc	Other Technology	4,000,000		07/31/2021
World Wrapps II, Inc.	Other Technology	500,000		12/31/2021
Total		$	81,950,000

Borrower

Industry

Unexpired Unfunded Commitment as of December 31, 2020

Expiration Date

303 Holdings, Inc.

Technology Services

3,000,000

12/31/2021

8E14 Networks

Other Technology

600,000

07/31/2021

Aclima, Inc.

Other Technology

2,000,000

03/31/2021

Afero, Inc.

Software

1,500,000

05/31/2021

Antitoxin Technologies Inc.

Other Technology

1,000,000

06/30/2021

BackboneAI Inc.

Software

1,000,000

04/30/2021

Bizly, Inc.

Software

1,650,000

03/31/2021

Canary Connect, Inc.

Computers & Storage

2,000,000

01/31/2021

Content Adjacent, Inc.

Other Technology

500,000

07/31/2021

Coterie Applications, Inc.

Other Technology

500,000

03/31/2021

CytoVale, Inc.

Medical Devices

1,000,000

01/31/2021

Exo Imaging, Inc.

Medical Devices

2,000,000

09/30/2021

Fetch Robotics, Inc.

Computers & Storage

2,500,000

06/30/2021

GoForward, Inc.

Other Healthcare

3,125,000

07/31/2021

Hello Heart Inc.

Other Healthcare

2,000,000

09/30/2021

Honeybee Health, Inc.

Other Healthcare

3,000,000

07/31/2021

iLearningEngines Inc.

Technology Services

2,000,000

07/31/2021

Invoice2Go, Inc.

Software

13,000,000

03/31/2021

Borrower

Industry

Unexpired Unfunded Commitment as of December 31, 2020

Expiration Date

Lukla, Inc.

Internet

500,000

01/31/2021

Mavenform, Inc.

Other Technology

1,500,000

04/30/2021

Natomas Labs, Inc.

Other Technology

2,000,000

04/15/2021

OnepointOne, Inc.

Other Technology

2,000,000

03/31/2021

Oula Health, Inc.

Other Healthcare

750,000

11/30/2021

Peerwell, Inc.

Other Healthcare

500,000

07/30/2021

Pixlee, Inc.

Software

2,500,000

06/30/2021

Privoro Holdings, Inc.

Other Technology

1,000,000

01/31/2021

Reciprocity, Inc.

Software

1,950,000

01/31/2021

Residently USA, LLC

Internet

375,000

03/31/2021

Riffyn, Inc.

Technology Services

2,000,000

01/31/2021

Sonatus, Inc.

Software

1,000,000

03/31/2021

Swiftly Systems, Inc.

Software

5,000,000

08/30/2021

Tia, Inc.

Other Healthcare

7,000,000

10/31/2021

TIER Mobility GmbH

Other Technology

8,000,000

02/15/2021

Vessel Health, Inc.

Other Healthcare

3,750,000

03/31/2021

World Wrapps II, Inc.

Other Technology

1,000,000

12/31/2021

Total

83,200,000

11. FINANCIAL HIGHLIGHTS

U.S. GAAP requires disclosure of financial highlights of the Fund for the three and six months ended June 30, 2021 and 2020.

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 June 30, 2021			For the Three Months Ended June 30, 2020			For the Six Months Ended June 30, 2021			For the Six Months Ended June 30, 2020

Total return**	6.96		%	4.43		%	14.32		%	4.46		%

Per share amounts:
Net asset value, beginning of period	$	1,802.41		$	1,426.44		$	1,833.27		$	1,138.32
Net investment income	144.36			63.40			259.88			140.21
Net realized and change in unrealized gain (loss) from loans and derivative instruments	(5.96)			(0.24)			2.42			(76.72)
Net increase in net assets resulting from operations	138.40			63.16			262.30			63.49
Distributions to shareholder	(204.04)			(22.38)			(498.80)			(64.59)

Contributions from shareholder	595.00			—			735.00			330.00

Net asset value, end of period	$	2,331.77		$	1,467.22		$	2,331.77		$	1,467.22
Net assets, end of period	$	233,176,826		$	146,721,694		$	233,176,826		$	146,721,694

Ratios to average net assets:

Expenses*	7.79		%	8.35		%	7.34		%	9.49		%
Net investment income*	27.97		%	17.77		%	26.56		%	21.65		%
Portfolio turn-over rate	—		%	—		%	—		%	—		%
Average debt outstanding	$	186,475,000		$	103,625,000		$	173,128,571		$	103,785,714

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

12. SUBSEQUENT EVENTS

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

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

In addition to the historical information contained herein, the information in this Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of the securities laws. These forward-looking statements reflect the current view of the Fund with respect to future events and financial performance and are subject to several risks and uncertainties, many of which are beyond the Fund’s control. All statements, other than statements of historical facts included in this Quarterly Report, regarding the strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of the Fund are forward-looking statements. For example, statements in this Form 10-Q regarding the potential future impact of the COVID-19 pandemic on the Fund’s business and results of operations are forward-looking statements. When used in this report, the words “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements speak only as of the date of this report. The Fund does not undertake any obligation to update or revise publicly any forward-looking statements, whether resulting from new information, future events or otherwise, except as required by law.

The reader of this Quarterly Report should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Fund’s actual results could differ materially from those suggested by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, loan losses, expenses, rates charged on loans and earned on securities investments, competition and macro-economic changes including inflation, interest rate expectations, among other factors including those set forth in the section of this Quarterly Report titled “Risk Factors” and Item 1A - “Risk Factors” in the Fund’s 2020 Annual Report on Form 10-K. This entire Quarterly Report should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Fund’s business.

Overview

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

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

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

The Fund will seek to meet the ongoing requirements, including the diversification requirements, to qualify as a RIC under the Code. If the Fund fails to meet these requirements, it will be taxed as an ordinary corporation on its taxable income for that year (even if that income is distributed to the members of the Company as ordinary

income); thus, such income will be subject to a double layer of tax. There is no assurance that the Fund will meet the ongoing requirements to qualify as a RIC for tax purposes.

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

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

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

Critical Accounting Policies, Practices and Estimates

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

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

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

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

COVID-19's Impact on Results of Operations and Liquidity & Capital Resources

The slowdown of the global and local economies in 2020 had had an impact on a number of the Fund’s portfolio companies’ business and operations. Due to the increased market volatility, valuation of the Fund’s loan investments contributed to increased unrealized losses from loans for the quarter ended June 30, 2020. At the end of 2020, vaccines were approved for deployment by various government health agencies, resulting in shelter-in-place and quarantine restrictions that have continued to loosen over the first six months of 2021. The recent market stability, in addition to the recovering local and global economies, factored into the Fund’s valuation adjustments. For the quarter ended June 30, 2021, the Fund recognized unrealized gains from loans compared to the recognized unrealized losses for the same period in 2020.

Although markets have begun to stabilize and economies have begun to recover, uncertainty remains regarding the full extent of the long-term economic impact on the Fund’s business operations, results of operations, and access to liquidity and capital resources. The impact on the Fund will depend on many factors beyond the Fund’s control, including, without limitations, the timing, extent, trajectory, and duration of the pandemic. In addition, the speed of economic recovery may vary across different industries both locally and globally. The Fund is continuing to maintain close communications with its loan portfolio companies to proactively assess and manage potential risks. In addition, Management is continuing to maintain oversight analysis of credits across the Fund's loan 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 and timely communication with the bank syndicate and the Company’s members. The Fund believes its existing cash balance, scheduled monthly payments from borrowers, and access to capital from its debt facility and the Company’s members will be sufficient to satisfy its working capital needs, debt repayments, and other liquidity requirements associated with its existing operations.

Results of Operations - For the Three and Six Months Ended June 30, 2021 and 2020

Analysis of Interest Income

Total investment income for the three months ended June 30, 2021 and 2020 was $18.5 million and $9.3 million, respectively, which primarily consisted of interest on the venture loans outstanding. The remaining income consisted of interest and dividends on the temporary investment of cash.

The following table shows the average balance, interest income, and weighted average interest rate for the cash and non-cash portion of interest income for the three months ended June 30, 2021 and 2020.


	For the Three Months Ended June 30, 2021								For the Three Months Ended June 30, 2020
	Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion		Weighted Average Interest Rate - Non-Cash Portion		Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion		Weighted Average Interest Rate - Non-Cash Portion
Performing Loans	$	365,738,789	$	18,076,777	14.61	%	5.16	%	$	234,362,526	$	9,272,778	12.70	%	3.13	%
All Loans	$	376,287,362	$	18,455,104	14.60	%	5.02	%	$	244,086,939	$	9,308,799	12.24	%	3.01	%

Interest income for performing and all loans increased by $8.8 million and $9.1 million, or 95% and 98%, respectively, for the three moths ended June 30, 2021 compared to the same period in 2020. The increase is primarily due to the increase growth in our loan portfolio and early loan payoffs. The average outstanding balance for performing and all loans increased by $131.4 million and $132.2 million, or 56% and 54%, respectively, for the three months ended June 30, 2021 compared to the same period in 2020.

The following table shows the average balance, interest income, and weighted average interest rate for the cash and non-cash portion of interest income for the six months ended June 30, 2021 and 2020.


	For the Six Months Ended June 30, 2021								For the Six Months Ended June 30, 2020
	Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion		Weighted Average Interest Rate - Non-Cash Portion		Average Outstanding Balance		Interest Income		Weighted Average Interest Rate - Cash Portion		Weighted Average Interest Rate - Non-Cash Portion
Performing Loans	$	341,803,840	$	32,552,398	14.37	%	4.68	%	$	220,239,824	$	19,619,696	14.31	%	3.51	%
All Loans	$	351,596,078	$	33,142,352	14.30	%	4.55	%	$	227,509,498	$	19,655,717	13.89	%	3.39	%

Interest income for performing and all loans increased by $12.9 million and $13.5 million, or 66% and 69%, respectively, for the six months ended June 30, 2021 compared to the same period in 2020. The increase is primarily due to the increase growth in our loan portfolio. The average outstanding balance for performing and all loans increased by $121.6 million and $124.1 million, or 55% and 55%, respectively, for the six months ended June 30, 2021 compared to the same period in 2020.

Analysis of Interest Expense

Interest expense was comprised of amounts related to interest on debt amounts drawn down, unused credit line fees, and amounts amortized from deferred fees incurred in conjunction with the debt facility.

The following table shows the average balance, interest expense, and weighted average interest rate for the three months ended June 30, 2021 and 2020.


	For the Three Months Ended June 30, 2021						For the Three Months Ended June 30, 2020
	Average Balance		Interest Expense		Weighted Average Interest Expense Rate		Average Balance		Interest Expense		Weighted Average Interest Expense Rate
Bank Facility	$	186,475,000	$	1,537,561	3.30	%	$	103,625,000	$	921,686	3.56	%

Interest expense increased by $616 thousand, or 67%, for the three months ended June 30, 2021 compared to the same period in 2020. The increase is primarily due to higher average debt outstanding, slightly offset by lower weighted average interest rate.

The following table shows the average balance, interest expense, and weighted average interest rate for the six months ended June 30, 2021 and 2020.


	For the Six Months Ended June 30, 2021						For the Six Months Ended June 30, 2020
	Average Balance		Interest Expense		Weighted Average Interest Expense Rate		Average Balance		Interest Expense		Weighted Average Interest Expense Rate
Bank Facility	$	173,128,571	$	2,750,725	3.18	%	$	103,785,714	$	2,151,471	4.15	%

Interest expense increased by $599 thousand, or 28%, for the six months ended June 30, 2021 compared to the same period in 2020. The increase is primarily due to higher average debt outstanding, offset by lower weighted average interest rate.

Analysis of Operating Expense

The following table shows the components of operating expense for the three and six months ended June 30, 2021 and 2020.


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
Operating Expense	2021		2020		Change ($)		2021		2020		Change ($)
Management fees	$	1,811,250	$	1,840,000	$	(28,750)	$	3,622,500	$	3,680,000	$	(57,500)
Banking and professional fees	$	640,849	$	191,921	$	448,928	$	742,608	$	256,937	$	485,671
Other operating expenses	$	30,226	$	26,329	$	3,897	$	60,869	$	58,587	$	2,282
Total Operating Expense	$	2,482,325	$	2,058,250	$	424,075	$	4,425,977	$	3,995,524	$	430,453

Management fees did not materially decrease for the three and six months ended June 30, 2021 compared to the same periods in 2020. For the period from January 1, 2021 through June 30, 2021, management fees were calculated at 1.575% of the Company's committed capital. For the same period in 2020, management fees were calculated at 1.600% of the Company's committed capital.

Banking and professional fees increased by $0.4 million and $0.5 million, or 234% and 189%, respectively, for the three and six months ended June 30, 2021 compared to the same periods in 2020. Increase in banking and professional fees were primarily due to higher legal fees associated with the documentation of loans.

Other operating expenses did not materially increase for the three and six months ended June 30, 2021 compared to the same periods in 2020. These expenses included director fees, custody fees, tax fees and other expenses related to the operations of the Fund.

Realized and Change in Unrealized Gains (Losses)

Net investment income for the three months ended June 30, 2021 and 2020 was $14.4 million and $6.3 million, respectively. Net investment income for the six months ended June 30, 2021 and 2020 was $26.0 million and $14.0 million, respectively.

Net realized loss from loans was zero for the three months ended June 30, 2021 and 2020, respectively. Net realized loss from loans was $0.1 million and zero for the six months ended June 30, 2021 and 2020, respectively. This is loss incurred on a written-off loan.

Net realized loss from derivative instruments was $0.3 million for the three months ended June 30, 2021 and 2020, respectively. Net realized loss from derivative instruments was $0.7 million and $0.3 million for the six months ended June 30, 2021 and 2020, respectively. The primary reason for the loss was interest paid by the Fund on the interest rate swap and floor agreement when the fixed rate interest of the swap and floor was higher than the floating rate.

Net change in unrealized gain (loss) from loans was $(0.5) million and $0.2 million for the three months ended June 30, 2021 and 2020, respectively. Net change in unrealized gain (loss) from loans was $0.3 million and $(6.2) million for the six months ended June 30, 2021 and 2020, respectively. The net change in unrealized gain (loss) from loans consisted of fair value adjustments taken against loans resulting from the improvement or deterioration in certain portfolio companies’ performance.

Net change in unrealized gain (loss) from derivative instruments was $0.3 million and less than $(0.1) million for the three months ended June 30, 2021 and 2020, respectively. Net change in unrealized gain (loss) from derivative instruments was $0.7 million and $(1.1) million for the six months ended June 30, 2021 and 2020, respectively. The net change in unrealized gain (loss) from derivative instruments consisted of fair market value adjustments to the derivative instruments and is a reflection of the market’s outlook on the economy and the future of interest rate changes, as well as realization of prior unrealized losses.

Net increase in net assets resulting from operations for the three months ended June 30, 2021 and 2020 was $13.8 million and $6.3 million, respectively. On a per share basis, the net increase in net assets resulting from operations for the three months ended June 30, 2021 and 2020 was $138.40 and $63.16, respectively.

Net increase in net assets resulting from operations for the six months ended June 30, 2021 and 2020 was $26.2 million and $6.3 million, respectively. On a per share basis, the net increase in net assets resulting from operations for the six months ended June 30, 2021 and 2020 was $262.30 and $63.48, respectively.

Liquidity and Capital Resources – June 30, 2021 and December 31, 2020

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 $316.6 million and $243.1 million as of June 30, 2021 and December 31, 2020, respectively. As of both June 30, 2021 and December 31, 2020, the Company had subscriptions for capital in the amount of $460.0 million, of which $351.9 million and $264.5 million had been called and received, respectively. As of June 30, 2021, $108.1 million of capital remains uncalled and the uncalled capital expires on the Fund’s fifth anniversary of its first investment unless extended. Management is permitted to extend the Fund’s investment period by up to two (2) additional calendar quarters in its sole and absolute discretion. The Company has made $59.7 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 six months ended June 30, 2021 and 2020 was as follows:


	For the Six Months Ended June 30, 2021		For the Six Months Ended June 30, 2020
Net cash used in operating activities	$	(88,236,327)	$	(55,417,989)
Net cash provided by financing activities	81,231,665		52,659,712
Net decrease in cash and cash equivalents	$	(7,004,662)	$	(2,758,277)

As of June 30, 2021 and December 31, 2020, 2.4% and 6.8%, respectively, of the Fund’s net assets consisted of cash and cash equivalents.

On December 20, 2018, the Fund entered into a syndicated loan agreement led by MUFG Union Bank, N.A., Wells Fargo Securities, LLC and ING Capital LLC, with participation from Zions Bancorporation, N.A., doing business as California Bank & Trust, Bank Leumi USA, Umpqua Bank, HSBC Bank USA, N.A., and First Bank, that established a secured revolving loan facility in an initial amount of up to $200.0 million with the option to request that borrowing availability be increased up to $400.0 million, subject to further negotiation and credit approval. On March 18, 2021, the Fund entered into an Amendment to the Loan and Security Agreement with MUFG Union Bank, N.A., Wells Fargo Securities, LLC, Wells Fargo Bank, N.A. and ING Capital, LLC, with participating from TIAA, FSB, Bank Leumi USA, HSBC Bank USA, N.A., Umpqua Bank, Zions Bancorporation, N.A., doing business as California Bank & Trust, Hitachi Capital America Corp, First Bank, and Bank of Hope, that increased the size of the facility to $350,000,000 and extended the term of the facility (the “Amended Loan Agreement”). An additional $50,000,000 is potentially available to the Fund, subject to further negotiation and credit approval, through an accordion provision.

Borrowings by the Fund are collateralized by all the assets of the Fund. Loans under the facility may be, at the option of the Fund, a Reference Rate Loan, a LIBOR Loan or a LIBOR Market Index Rate Loan. The Fund pays interest on its borrowings and also pays a fee on the unused portion of the facility. The facility terminates on March 18, 2024, but can be accelerated in the event of default, such as the failure by the Fund to make timely interest or principal payments. As of June 30, 2021, $184.5 million was outstanding under the facility.

For the six months ended June 30, 2021 and since the start of its investment operation in May 2018, the Fund invested its assets in venture loans. Amounts disbursed under the Fund’s loan commitments were $168.9 million for the six months ended June 30, 2021. Net loan amounts outstanding after amortization and valuation adjustments increased by $97.5 million for the same period. Unexpired unfunded commitments totaled $82.0 million as of June 30, 2021.

As of

Cumulative Amount
Disbursed

Principal
Reductions and Fair
Market Adjustments

Balance
Outstanding - Fair
Value

Unexpired
Unfunded
Commitments

June 30, 2021

$632.4 million

$224.3 million

$408.0 million

$82.0 million

December 31, 2020

$463.4 million

$152.9 million

$310.5 million

$83.2 million

The following tables show the unexpired unfunded commitments by portfolio company as of June 30, 2021 and December 31, 2020.


Borrower	Industry	Unexpired Unfunded Commitment as of June 30, 2021		Expiration Date
303 Holdings, Inc.	Technology Services	$	3,000,000	12/31/2021
8E14 Networks	Other Technology	600,000		07/31/2021
Airvine Scientific, Inc.	Wireless	625,000		09/30/2021
Alchera Incorporated	Other Healthcare	1,500,000		01/31/2022
Big Run Studios, Inc.	Software	1,000,000		09/30/2021
Bizly, Inc.	Software	1,000,000		09/30/2021
Brave Care Inc.	Other Technology	1,250,000		10/31/2021
BriteCo LLC	Software	350,000		10/30/2021
Candy Club Holdings, Inc.	Other Technology	2,500,000		10/31/2021
ClipCall, Inc.	Other Technology	500,000		08/15/2021
Content Adjacent, Inc.	Other Technology	500,000		07/31/2021
Coterie Applications, Inc.	Other Technology	7,500,000		01/31/2022
Equestrian Labs, Inc.	Other Technology	750,000		09/30/2021
Exo Imaging	Medical Devices	2,000,000		09/30/2021
Fakespot, Inc.	Other Technology	500,000		01/31/2022
GLO Pharma, Inc.	Biotechnology	2,000,000		10/31/2021
GoForward, Inc.	Other Healthcare	3,125,000		07/31/2021
Grayce, Inc.	Other Healthcare	1,500,000		12/31/2021
Hello Heart, Inc.	Other Healthcare	2,000,000		09/30/2021


HumanAPI, Inc.	Other Healthcare	1,000,000		12/01/2021
iLearningEngines Inc.	Technology Services	2,000,000		07/31/2021

Level Home, Inc.	Other Technology	10,000,000		08/25/2021
Mavenform, Inc.	Other Technology	2,000,000		04/30/2022
MeshPlusPlus, Inc.	Wireless	250,000		10/30/2021

NanoGriptech Inc.	Other Technology	750,000		10/31/2021
Natomas Labs, Inc.	Other Technology	1,500,000		08/15/2021
Norbert Health, Inc.	Medical Devices	1,000,000		01/31/2022
Oula Health, Inc.	Other Healthcare	750,000		11/30/2021
Peerwell, Inc.	Other Healthcare	500,000		07/30/2021
Proper Labs, Inc.	Internet	1,500,000		10/30/2021
Reali Inc.	Other Technology	12,000,000		09/30/2021
Starface World, Inc.	Internet	2,000,000		11/15/2021
Swiftly Systems, Inc.	Software	2,500,000		08/30/2021
Terragon, Inc.	Software	500,000		10/31/2021
The Safe and Fair Food Company LLC	Other Technology	1,000,000		07/31/2021
Therapydia, Inc.	Other Healthcare	1,500,000		04/30/2022
Tia, Inc.	Other Healthcare	4,500,000		10/31/2021
Wine Plum, Inc	Other Technology	4,000,000		07/31/2021
World Wrapps II, Inc.	Other Technology	500,000		12/31/2021
Total		$	81,950,000

Borrower

Industry

Unexpired Unfunded Commitment as of December 31, 2020

Expiration Date

303 Holdings, Inc.

Technology Services

3,000,000

12/31/2021

8E14 Networks

Other Technology

600,000

07/31/2021

Aclima, Inc.

Other Technology

2,000,000

03/31/2021

Afero, Inc.

Software

1,500,000

05/31/2021

Antitoxin Technologies Inc.

Other Technology

1,000,000

06/30/2021

BackboneAI Inc.

Software

1,000,000

04/30/2021

Bizly, Inc.

Software

1,650,000

03/31/2021

Canary Connect, Inc.

Computers & Storage

2,000,000

01/31/2021

Content Adjacent, Inc.

Other Technology

500,000

07/31/2021

Coterie Applications, Inc.

Other Technology

500,000

03/31/2021

CytoVale, Inc.

Medical Devices

1,000,000

01/31/2021

Exo Imaging, Inc.

Medical Devices

2,000,000

09/30/2021

Fetch Robotics, Inc.

Computers & Storage

2,500,000

06/30/2021

GoForward, Inc.

Other Healthcare

3,125,000

07/31/2021

Hello Heart Inc.

Other Healthcare

2,000,000

09/30/2021

Honeybee Health, Inc.

Other Healthcare

3,000,000

07/31/2021

iLearningEngines Inc.

Technology Services

2,000,000

07/31/2021

Invoice2Go, Inc.

Software

13,000,000

03/31/2021

Lukla, Inc.

Internet

500,000

01/31/2021

Mavenform, Inc.

Other Technology

1,500,000

04/30/2021

Natomas Labs, Inc.

Other Technology

2,000,000

04/15/2021

OnepointOne, Inc.

Other Technology

2,000,000

03/31/2021

Oula Health, Inc.

Other Healthcare

750,000

11/30/2021

Peerwell, Inc.

Other Healthcare

500,000

07/30/2021

Pixlee, Inc.

Software

2,500,000

06/30/2021

Privoro Holdings, Inc.

Other Technology

1,000,000

01/31/2021

Reciprocity, Inc.

Software

1,950,000

01/31/2021

Residently USA, LLC

Internet

375,000

03/31/2021

Riffyn, Inc.

Technology Services

2,000,000

01/31/2021

Sonatus, Inc.

Software

1,000,000

03/31/2021

Swiftly Systems, Inc.

Software

5,000,000

08/30/2021

Tia, Inc.

Other Healthcare

7,000,000

10/31/2021

TIER Mobility GmbH

Other Technology

8,000,000

02/15/2021

Vessel Health, Inc.

Other Healthcare

3,750,000

03/31/2021

World Wrapps II, Inc.

Other Technology

1,000,000

12/31/2021

Total

83,200,000

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

The Fund seeks to maintain the requirements to qualify for the special pass-through status available to RICs under the Code, and thus to be relieved of federal income tax on that part of its net investment income and realized capital gains that it distributes to its shareholder. To qualify as a RIC, the Fund must distribute to its shareholder for each taxable year at least 90% of its investment company taxable income (consisting generally of net investment income and net short-term capital gain) (the “Distribution Requirement”). To the extent that the terms of the Fund’s

venture loans provide for the receipt by the Fund of additional interest at the end of the loan term or provide for the receipt by the Fund of a purchase price for the asset at the end of the loan term (“residual income”), the Fund would be required to accrue such residual income over the life of the loan, and to include such accrued undistributed income in its gross income for each taxable year even if it receives no portion of such residual income in that year. Thus, in order to meet the Distribution Requirement and avoid payment of income taxes or an excise tax on undistributed income, the Fund may be required in a particular year to distribute as a dividend an amount in excess of the total amount of income it actually receives. Those distributions will be made from the Fund’s cash assets, from amounts received through amortization of loans or from borrowed funds.

As of June 30, 2021, the Fund had cash balance of $5.5 million and approximately $185.9 million in scheduled loan receivable payments over the next twelve months. Additionally, the Fund has access to uncalled capital of $108.1 million and recallable capital of $59.7 million as a liquidity source, and a borrowing base that grows as it funds additional commitments. These amounts are sufficient to meet the current commitment backlog and operational expenses of the Fund over the next year. The Fund regularly evaluates potential future liquidity resources and demands before making additional future commitments.

On April 24, 2019, the Fund’s sole shareholder, the Company, approved a reduced asset coverage ratio of 150% for the Fund as permitted in Section 61(a)(2) of the 1940 Act. Accordingly, the Fund is permitted to borrow in any amount so long as its asset coverage ratio, as defined in the 1940 Act, is at least 150% after giving effect to such borrowings. As of June 30, 2021, the Fund’s asset coverage ratio was 226%.

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 June 30, 2021, the outstanding debt balance was $184.5 million at a floating interest rate of 0.10%, for which the Fund had derivative instruments in place with a weighted-average fixed interest rate of 2.28% on $57.0 million of the notional principal amount with an interest rate swap and floor, and a weighted-average ceiling of 1.06% on $50.0 million of the notional principal amount with an interest rate collar, leaving the Fund with exposure to interest rate changes on the un-hedged portion of the loan.

Because all of the Fund’s loans impose a fixed interest rate upon funding, changes in short-term interest rates will not directly affect interest income associated with the loan portfolio as of June 30, 2021. 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 June 30, 2021, 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 derivative instruments.


Effect of Interest Rate Change By	Increase (Decrease) Other Interest and Other Income		Gain (Loss) from Interest Rate Swap and Floor		Gain (Loss) from Interest Rate Collar		Increase (Decrease) Interest Income		Increase (Decrease) in Total Income
(0.50)%	$	(27,463)	$	(285,000)	$	(250,000)	$	185,423	$	(377,040)
1%	$	54,926	$	570,000	$	118,900	$	(1,845,000)	$	(1,101,174)
2%	$	109,852	$	1,140,000	$	609,000	$	(3,690,000)	$	(1,831,148)
3%	$	164,777	$	1,710,000	$	1,109,000	$	(5,535,000)	$	(2,551,223)
4%	$	219,703	$	2,280,000	$	1,609,000	$	(7,380,000)	$	(3,271,297)
5%	$	274,629	$	2,850,000	$	2,109,000	$	(9,225,000)	$	(3,991,371)

Additionally, a change in the interest rate may affect the value of the derivative instruments 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 derivative instruments 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 derivative instruments to hedge its interest rate exposure.

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

Item 4. Controls and Procedures

Disclosure Controls and Procedures:

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

Changes in Internal Controls:

There have not been any changes in the Fund’s internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the Fund’s fiscal quarter ended June 30, 2021 that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

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

Item 1A. Risk Factors

There have been no material changes to the risk factors reported in the Fund’s 2020 Annual Report on Form 10-K.

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

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits


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

SIGNATURES

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

VENTURE LENDING & LEASING IX, INC.

(Registrant)


By:	/s/ Maurice C. Werdegar	By:	/s/ Jared S. Thear
Maurice C. Werdegar		Jared S. Thear
Chief Executive Officer		Chief Financial Officer
(Principal Executive Officer)		(Principal Financial Officer)
Date:	August 12, 2021	Date:	August 12, 2021

Venture Lending & Leasing IX, Inc. - FORM 10-Q - August 12, 2021

Attached files

Venture Lending & Leasing IX, Inc. Reports