Princeton Capital Corp Files Q2 2024 10-Q

TL;DR

Princeton Capital Corp's Q2 2024 10-Q is in. Check financials.

AI Summary

Princeton Capital Corporation filed its 10-Q for the quarterly period ended June 30, 2024. The filing details the company's financial performance and operations during this period. Princeton Capital Corporation, incorporated in Maryland, is headquartered at 800 Turnpike Street, Suite 300, North Andover, Massachusetts.

Why It Matters

This filing provides investors with an update on Princeton Capital Corporation's financial health and operational status for the second quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated in the provided snippet.

Key Players & Entities

• PRINCETON CAPITAL CORP (company) — Filer
• June 30, 2024 (date) — Quarterly period end date
• 800 Turnpike Street, Suite 300, North Andover, Massachusetts 01845 (address) — Principal executive offices
• Maryland (jurisdiction) — State of incorporation
• 46-3516073 (identifier) — I.R.S. Employer Identification No.
• 814-00710 (identifier) — Commission File Number

FAQ

Key Financial Figures

• $0.001 — of shares of the issuer's Common Stock, $0.001 par value, outstanding as of August 14,

Filing Documents

• ea0211196-10q_princeton.htm (10-Q) — 1219KB
• ea021119601ex31-1_princeton.htm (EX-31.1) — 10KB
• ea021119601ex31-2_princeton.htm (EX-31.2) — 10KB
• ea021119601ex32_princeton.htm (EX-32) — 4KB
• 0001213900-24-069133.txt ( ) — 6949KB
• piac-20240630.xsd (EX-101.SCH) — 69KB
• piac-20240630_cal.xml (EX-101.CAL) — 27KB
• piac-20240630_def.xml (EX-101.DEF) — 243KB
• piac-20240630_lab.xml (EX-101.LAB) — 420KB
• piac-20240630_pre.xml (EX-101.PRE) — 239KB
• ea0211196-10q_princeton_htm.xml (XML) — 1462KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 1 2 3 4 Schedule of Investments as of June 30, 2024 (unaudited) 5 Schedule of Investments as of December 31, 2023 8

Notes to Financial Statements (unaudited) as of June 30, 2024

Notes to Financial Statements (unaudited) as of June 30, 2024 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45 Item 4.

Controls and Procedures

Controls and Procedures 45

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 Item 3. Defaults Upon Senior Securities 46 Item 4. Mine Safety Disclosures 46 Item 5. Other Information 46 Item 6. Exhibits 46

SIGNATURES

SIGNATURES 47 - i -

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PRINCETON CAPITAL CORPORATION June 30, 2024 December 31, 2023 (unaudited) ASSETS Control investments at fair value (cost of $ 21,625,606 and $ 27,353,273 , respectively) $ 15,645,961 $ 18,581,422 Non-control/non-affiliate investments at fair value (cost of $ 12,200,144 and $ 12,047,429 , respectively) 6,463,125 11,153,531 Total investments at fair value (cost of $ 33,825,750 and $ 39,400,702 , respectively) 22,109,086 29,734,953 Cash and cash equivalents 1,956,392 1,937,768 Restricted cash 47,465 41,891 Due from portfolio companies 31,789 26,592 Interest receivable, net of allowance for bad debt of $ 0 and $ 16,549 , respectively 477,792 525,685 Taxes receivable 788 - Prepaid expenses 144,157 47,306 Total assets 24,767,469 32,314,195 LIABILITIES Accrued management fees 143,958 78,889 Accounts payable 183,774 159,472 Due to affiliates (1) 129,750 64,875 Taxes expense payable 3,804 64,537 Deferred fee income 34,884 - Accrued expenses and other liabilities 132,834 41,860 Total liabilities 629,004 409,633 Commitments and contingencies (Note 8) - - Net assets $ 24,138,465 $ 31,904,562 NET ASSETS Common Stock, par value $ 0.001 per share ( 250,000,000 shares authorized; 120,486,061 shares issued and outstanding at June 30, 2024 and December 31, 2023) $ 120,486 $ 120,486 Paid-in capital 64,868,884 64,868,884 Accumulated deficit ( 40,850,905 ) ( 33,084,808 ) Total net assets $ 24,138,465 $ 31,904,562 Net asset value per share $ 0.200 $ 0.265 (1) Amounts under Due to Affiliates are for accrued amounts payable to the Company's investment advisor, House Hanover, LLC for the reimbursement of administration fees that it incurs on the Company's behalf. See Note 7 of the Notes to Financial Statements. The accompanying notes are an integral part of these unaudited financial statements. - 1 - PRINCETON CAP

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 (Unaudited) NOTE 1 – NATURE OF OPERATIONS References herein to "we", "us" or "our" refer to Princeton Capital Corporation (the "Company" or "Princeton Capital"), unless the context specifically requires otherwise. Princeton Capital Corporation, a Maryland corporation, was incorporated under the general laws of the State of Maryland on July 25, 2013. We are a non-diversified, closed-end investment company that has filed an election to be regulated as a business development company ("BDC"), under the Investment Company Act of 1940, as amended (the "1940 Act"). A goal of a BDC is to annually qualify and elect to be treated as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The Company, however, did not meet the requirements to qualify as a RIC for the 2023 tax year and will be taxed as a corporation under Subchapter C of the Code and does not expect to meet the qualifications of a RIC until such time as certain strategic alternatives are achieved. While we have sought to invest primarily in private small and lower middle-market companies in various industries through first lien loans, second lien loans, unsecured loans, unitranche and mezzanine debt financing, often times with a corresponding equity investment, we are now (with a strategic alternatives process underway and limited resources) investing only in current investments and otherwise conserving cash. Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments. Prior to March 13, 2015, Princeton Capital's predecessor operated under the name Regal One Corporation ("Regal One"). Regal One had been located in Scottsdale, Arizona, and was a Florida corporation initially incorporated in 1959 as Electro-Mechanical Services Inc. Since inception, Regal One had been involved in se

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 (Unaudited) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, ("U.S. GAAP"). In accordance with Regulation S-X under the Securities Act of 1933 and Securities Exchange Act of 1934, the Company does not consolidate portfolio company investments. The accounting records of the Company are maintained in U.S. dollars. As an investment company, as defined by the 1940 Act, the Company follows investment company accounting and reporting guidance of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946 – "Financial Services - Investment Companies", which is U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. The reported amounts for the six months ended June 30, 2024 may not be indicative of the results ultimately achieved for the year ended December 31, 2024 which will be presented in the Company's annual report on form 10-K. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Changes in the economic environment, financial markets, creditworthiness of our portfolio companies and any other parameters used in determining these estimates could cause actual results to differ. It is likely that changes in these estimates will occur in the near term. The Company's estimates are inherently subjective in nature and actual results could differ materially from such estimates. Portfolio Investment Classification The Company classi

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