Rand Capital Corp. Q3 2024: Investments and Notes Detailed

TL;DR

**Rand Capital Q3: Portfolio includes Tilson Tech, Mezmeriz, SciAps; $4.4M+ in notes outstanding.**

AI Summary

Rand Capital Corp. reported its Q3 2024 results, ending September 30, 2024. The company's investments include holdings in Tilson Technology Management, Inc., Mezmeriz, Inc., and SciAps, Inc. Rand Capital also has term notes with Seybert’s Billiards Corporation for $1,435,435 and Mountain Regional Equipment Solutions for $3,000,000.

Why It Matters

This filing provides insight into Rand Capital's investment portfolio and debt holdings, which are key indicators of its financial health and future growth prospects.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to its investment in various companies and the associated market and credit risks.

Key Numbers

• $1,435,435 — Term Note (Amount owed by Seybert's Billiards Corporation as of September 30, 2024.)
• $3,000,000 — Term Note (Amount owed by Mountain Regional Equipment Solutions as of September 30, 2024.)

Key Players & Entities

• Rand Capital Corp. (company) — Filer of the 10-Q
• Tilson Technology Management, Inc. (company) — Investment
• Mezmeriz, Inc. (company) — Investment
• SciAps, Inc. (company) — Investment
• Seybert’s Billiards Corporation (company) — Note Holder
• Mountain Regional Equipment Solutions (company) — Note Holder
• $1,435,435 (dollar_amount) — Term Note with Seybert's Billiards Corporation
• $3,000,000 (dollar_amount) — Term Note with Mountain Regional Equipment Solutions

FAQ

Key Financial Figures

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

Filing Documents

• rand-20240930.htm (10-Q) — 5215KB
• rand-ex31_1.htm (EX-31.1) — 16KB
• rand-ex31_2.htm (EX-31.2) — 15KB
• rand-ex32_1.htm (EX-32.1) — 14KB
• 0000950170-24-121811.txt ( ) — 16165KB
• rand-20240930.xsd (EX-101.SCH) — 1060KB
• rand-20240930_htm.xml (XML) — 4193KB

– 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 September 30, 2024 (Unaudited) and December 31, 2023 1 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 2 Consolidated Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 4 Consolidated Schedule of Portfolio Investments as of September 30, 2024 (Unaudited) 5 Consolidated Schedule of Portfolio Investments as of December 31, 2023 12 Notes to the Consolidated Financial Statements (Unaudited) 20 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 36 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 48

– 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 September 30, 2024 (Unaudited) December 31, 2023 ASSETS Investments at fair value: Control investments (cost of $ 6,043,779 and $ 5,272,770 , respectively) $ 4,919,969 $ 4,148,960 Affiliate investments (cost of $ 39,484,404 and $ 45,720,974 , respectively) 50,859,581 53,499,372 Non-Control/Non-Affiliate investments (cost of $ 21,524,089 and $ 17,371,862 , respectively) 19,256,017 19,477,380 Total investments, at fair value (cost of $ 67,052,272 and $ 68,365,606 , respectively) 75,035,567 77,125,712 Cash 3,352,734 3,295,321 Interest receivable 408,247 244,600 Prepaid income taxes 185,602 127,869 Deferred tax asset, net 367,765 39,179 Other assets 448,204 189,301 Total assets $ 79,798,119 $ 81,021,982 LIABILITIES AND STOCKHOLDERS' EQUITY (NET ASSETS) Liabilities: Due to investment adviser $ 487,483 $ 979,297 Accounts payable and accrued expenses 104,381 145,516 Line of credit (see Note 6) 3,900,000 16,250,000 Capital gains incentive fees 4,346,000 2,279,700 Deferred revenue 513,619 552,256 Total liabilities 9,351,483 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 9/30/24 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 9/30/24 and 12/31/23 ( 1,566,605 ) ( 1,566,605 ) Total distributable earnings 15,947,179 6,315,756 Total stockholders' equity (net assets) (per share – 9/30/24: $ 27.29 ; 12/31/23: $ 23.56 ) 70,446,636 60,815,213 Total liabilities and stockholders' equity (net assets) $ 79,798,119 $ 81,021,982 See accompanying no

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