Rand Capital Corp. Q2 2024: Investments and Loans Detailed

TL;DR

Rand Capital's Q2 2024 10-Q shows significant loan and note investments, including $2.28M with Filterworks and $1.43M with Seybert's.

AI Summary

Rand Capital Corp. reported its Q2 2024 results, highlighting a $420,000 convertible note with FCM Industries Holdco LLC and a $1,245,119 term loan with HDI Acquisition LLC. The company also holds a $2,283,702 term note with Filterworks Acquisition USA, LLC and a $1,435,435 term note with Seybert's Billiards Corporation. Investments at fair value were a key focus, with specific mention of BMP Swanson and GoNoodle, Inc.

Why It Matters

This filing provides insight into Rand Capital's investment portfolio and debt structure, crucial for understanding its financial health and future growth potential.

Risk Assessment

Risk Level: medium — The company's financial health is tied to its investment portfolio, which may carry concentration risk in certain industries.

Key Numbers

• $420,000 — Convertible Note (Issued to FCM Industries Holdco LLC)
• $1,245,119 — Term Loan (Issued to HDI Acquisition LLC.)
• $2,283,702 — Term Note (Issued to Filterworks Acquisition USA, LLC)
• $1,435,435 — Term Note (Issued to Seybert’s Billiards Corporation)

Key Players & Entities

• RAND CAPITAL CORP (company) — Filer
• FCM Industries Holdco LLC (company) — Borrower of convertible note
• $420,000 (dollar_amount) — Convertible note principal
• HDI Acquisition LLC. (company) — Borrower of term loan
• $1,245,119 (dollar_amount) — Term loan principal
• GoNoodle, Inc. (company) — Investment
• Seybert’s Billiards Corporation (company) — Investment and borrower of term note
• BMP Swanson (company) — Investment
• Pressure Pro, Inc. (company) — Investment
• Filterworks Acquisition USA, LLC (company) — Borrower of term note

FAQ

Key Financial Figures

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

Filing Documents

• rand-20240630.htm (10-Q) — 5128KB
• rand-ex31_1.htm (EX-31.1) — 15KB
• rand-ex31_2.htm (EX-31.2) — 15KB
• rand-ex32_1.htm (EX-32.1) — 14KB
• 0000950170-24-091209.txt ( ) — 15699KB
• rand-20240630.xsd (EX-101.SCH) — 1038KB
• rand-20240630_htm.xml (XML) — 4081KB

– 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 June 30, 2024 (Unaudited) and December 31, 2023 1 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 2 Consolidated Statements of Changes in Net Assets for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 4 Consolidated Schedule of Portfolio Investments as of June 30, 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 37 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 49

– OTHER INFORMATION

PART II. – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50 Item 3. Defaults upon Senior Securities 50 Item 4. Mine Safety Disclosures 50 Item 5. Other Information 50 Item 6. Exhibits 51 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 June 30, 2024 (Unaudited) December 31, 2023 ASSETS Investments at fair value: Control investments (cost of $ 5,721,856 and $ 5,272,770 , respectively) $ 4,598,046 $ 4,148,960 Affiliate investments (cost of $ 45,250,676 and $ 45,720,974 , respectively) 61,779,019 53,499,372 Non-Control/Non-Affiliate investments (cost of $ 22,449,599 and $ 17,371,862 , respectively) 20,693,902 19,477,380 Total investments, at fair value (cost of $ 73,422,131 and $ 68,365,606 , respectively) 87,070,967 77,125,712 Cash 2,293,226 3,295,321 Interest receivable 516,617 244,600 Prepaid income taxes 149,863 127,869 Deferred tax asset, net 174,053 39,179 Other assets 584,343 189,301 Total assets $ 90,789,069 $ 81,021,982 LIABILITIES AND STOCKHOLDERS' EQUITY (NET ASSETS) Liabilities: Due to investment adviser $ 322,672 $ 979,297 Accounts payable and accrued expenses 108,358 145,516 Line of credit (see Note 6) 17,200,000 16,250,000 Capital gains incentive fees 4,033,000 2,279,700 Deferred revenue 566,423 552,256 Total liabilities 22,230,453 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 6/30/24 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 6/30/24 and 12/31/23 ( 1,566,605 ) ( 1,566,605 ) Total distributable earnings 14,059,159 6,315,756 Total stockholders' equity (net assets) (per share – 6/30/24: $ 26.56 ; 12/31/23: $ 23.56 ) 68,558,616 60,815,213 Total liabilities and stockholders' equity (net assets) $ 90,789,069 $ 81,021,982 See accompanying notes

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View this 10-Q filing on SEC EDGAR