RAND CAPITAL CORP Files 10-Q for Q1 2024

TL;DR

<b>Rand Capital Corp. filed its Q1 2024 10-Q, detailing its diverse investment portfolio and associated financial instruments.</b>

AI Summary

RAND CAPITAL CORP (RAND) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. Rand Capital Corp. reported on its Q1 2024 10-Q filing. The company holds investments in various entities including Filterworks Acquisition USA, LLC, FCM Industries Holdco LLC, and SciAps, Inc. Specific investments mentioned include FCM Industries Holdco LLC - $3,380,000 Term Note at 13% and Inter-National Electronic Alloys LLC - $3,288,235 Term Note at 12%. Rand Capital Corp. also holds equity in Knoa Software Inc. and common stock in FS KKR Capital Corp. A subsequent event on May 8, 2024, is noted without specific details.

Why It Matters

For investors and stakeholders tracking RAND CAPITAL CORP, this filing contains several important signals. The filing provides a snapshot of Rand Capital's investment activities, including equity stakes and debt instruments in various companies, which are crucial for understanding its asset base and potential returns. Details on specific term notes and preferred stock holdings offer insight into the company's lending and investment strategies, as well as the associated interest rates and terms.

Risk Assessment

Risk Level: medium — RAND CAPITAL CORP shows moderate risk based on this filing. The company's investment portfolio is subject to market and operational risks inherent in venture capital and private equity, as evidenced by the mention of 'IndustryConcentrationRisk' and 'InvestmentsAtFairValue'.

Analyst Insight

Review the specific terms and valuations of the listed debt and equity investments to assess potential future performance and risks.

Key Numbers

• 2024-03-31 — Report Date (Conformed Period of Report)
• 2024-05-13 — Filing Date (Filed as of Date)
• 13% — Interest Rate (FCM Industries Holdco LLC Term Note)
• 12% — Interest Rate (Inter-National Electronic Alloys LLC Term Note)
• $3,380,000 — Principal Amount (FCM Industries Holdco LLC Term Note)
• $3,288,235 — Principal Amount (Inter-National Electronic Alloys LLC Term Note)
• 2024-05-08 — Subsequent Event Date (Subsequent Event)

Key Players & Entities

• RAND CAPITAL CORP (company) — Filer
• Filterworks Acquisition USA, LLC d/b/a Autotality (company) — Investment
• FCM Industries Holdco LLC (company) — Investment
• SciAps, Inc. (company) — Investment
• Knoa Software Inc. (company) — Investment
• FS KKR Capital Corp. (company) — Investment
• PostProcess Technologies, Inc. (company) — Investment
• Inter-National Electronic Alloys LLC (company) — Investment

FAQ

Risk Factors

• Investments at Fair Value [medium — financial]: The company's investments are carried at fair value, which involves significant estimation and can be subject to volatility.
• Industry Concentration Risk [medium — market]: Concentration of investments in specific industries or companies may expose Rand Capital to greater risk if those sectors or entities underperform.
• Valuation of Debt Securities [medium — financial]: The fair value of debt securities, particularly those with variable interest rates or subject to credit risk, requires careful assessment.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.

Key Financial Figures

• $0.10 — e on which registered Common Stock, $0.10 par value RAND Nasdaq Capital Marke

Filing Documents

• rand-20240331.htm (10-Q) — 4625KB
• rand-ex31_1.htm (EX-31.1) — 15KB
• rand-ex31_2.htm (EX-31.2) — 14KB
• rand-ex32_1.htm (EX-32.1) — 13KB
• 0000950170-24-058202.txt (&nbsp;) — 14200KB
• rand-20240331.xsd (EX-101.SCH) — 1014KB
• rand-20240331_htm.xml (XML) — 3641KB

– FINANCIAL INFORMATION

PART I. – FINANCIAL INFORMATION Item 1.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 1 Consolidated Statements of Financial Position as of March 31, 2024 (Unaudited) and December 31, 2023 1 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 2 Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 4 Consolidated Schedule of Portfolio Investments as of March 31, 2024 (Unaudited) 5 Consolidated Schedule of Portfolio Investments as of December 31, 2023 13 Notes to the Consolidated Financial Statements (Unaudited) 21 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 35 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 43

– OTHER INFORMATION

PART II. – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 45 Table of Contents

FINANC IAL INFORMATION

PART I. FINANC IAL INFORMATION

Financial Statem ents and Supplementary Data

Item 1. Financial Statem ents and Supplementary Data RAND CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEME NTS OF FINANCIAL POSITION March 31, 2024 (Unaudited) December 31, 2023 ASSETS Investments at fair value: Control investments (cost of $ 5,661,245 and $ 5,272,770 , respectively) $ 4,537,435 $ 4,148,960 Affiliate investments (cost of $ 46,960,202 and $ 45,720,974 , respectively) 54,638,600 53,499,372 Non-Control/Non-Affiliate investments (cost of $ 24,282,868 and $ 17,371,862 , respectively) 23,598,090 19,477,380 Total investments, at fair value (cost of $ 76,904,315 and $ 68,365,606 , respectively) 82,774,125 77,125,712 Cash 759,183 3,295,321 Interest receivable 347,755 244,600 Prepaid income taxes 154,404 127,869 Deferred tax asset, net 65,815 39,179 Other assets 253,848 189,301 Total assets $ 84,355,130 $ 81,021,982 LIABILITIES AND STOCKHOLDERS' EQUITY (NET ASSETS) Liabilities: Due to investment adviser $ 302,480 $ 979,297 Accounts payable and accrued expenses 272,086 145,516 Line of credit (see Note 6) 19,200,000 16,250,000 Capital gains incentive fees 2,392,000 2,279,700 Deferred revenue 619,225 552,256 Total liabilities 22,785,791 20,206,769 Commitments and contingencies (see Note 5) Stockholders' equity (net assets): Common stock, $ 0.10 par; shares authorized 100,000,000 ; shares issued: 2,648,916 ; shares outstanding: 2,581,021 at 3/31/24 and 12/31/23 264,892 264,892 Capital in excess of par value 55,801,170 55,801,170 Treasury stock, at cost: 67,895 shares at 3/31/24 and 12/31/23 ( 1,566,605 ) ( 1,566,605 ) Total distributable earnings 7,069,882 6,315,756 Total stockholders' equity (net assets) (per share – 3/31/24: $ 23.85 ; 12/31/23: $ 23.56 ) 61,569,339 60,815,213 Total liabilities and stockholders' equity (net assets) $ 84,355,130 $ 81,021,982 See accompanying notes

View Full Filing

View this 10-Q filing on SEC EDGAR