Rand Capital Corp. Q2 2024: Investments and Loans Detailed

Ticker: RAND · Form: 10-Q · Filed: 2024-08-06T00:00:00.000Z

Sentiment: neutral

Topics: debt, investment, fair-value, notes

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

What is the interest rate on the $420,000 convertible note with FCM Industries Holdco LLC?

The filing states the convertible note with FCM Industries Holdco LLC is at 10%.

What is the maturity date for the $1,245,119 term loan with HDI Acquisition LLC?

The filing indicates the period for the HDI Acquisition LLC term loan was from 2023-01-01 to 2023-12-31, suggesting it was active during this period.

What is the fair value of Rand Capital's investment in GoNoodle, Inc. as of June 30, 2024?

The filing does not specify the fair value of the GoNoodle, Inc. investment as of June 30, 2024.

What is the interest rate on the $2,283,702 term note with Filterworks Acquisition USA, LLC?

The filing states the term note with Filterworks Acquisition USA, LLC is at 12%.

What is the nature of Rand Capital's investment in Seybert’s Billiards Corporation?

Rand Capital holds a warrant for 4% membership interest and 5.82 common shares in Seybert’s Billiards Corporation, and also has a $1,435,435 term note with them.

From the Filing

0000950170-24-091209.txt : 20240806 0000950170-24-091209.hdr.sgml : 20240806 20240806073036 ACCESSION NUMBER: 0000950170-24-091209 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 59 CONFORMED PERIOD OF REPORT: 20240630 FILED AS OF DATE: 20240806 DATE AS OF CHANGE: 20240806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RAND CAPITAL CORP CENTRAL INDEX KEY: 0000081955 ORGANIZATION NAME: IRS NUMBER: 160961359 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 814-00235 FILM NUMBER: 241177109 BUSINESS ADDRESS: STREET 1: 1405 RAND BUILDING CITY: BUFFALO STATE: NY ZIP: 14203 BUSINESS PHONE: 7168530802 MAIL ADDRESS: STREET 1: 1405 RAND BUILDING CITY: BUFFALO STATE: NY ZIP: 14203 10-Q 1 rand-20240630.htm 10-Q 10-Q Q2 --12-31 false 0000081955 http://fasb.org/us-gaap/2024#RelatedPartyMember http://fasb.org/us-gaap/2024#RelatedPartyMember 33.33 40 0000081955 FCM Industries Holdco LLC $420,000 Convertible Note at 10% 2023-01-01 2023-12-31 0000081955 rand:InvestmentsAtFairValueMember rand:ProfessionalAndBusinessServicesMember rand:IndustryConcentrationRiskMember 2024-06-30 0000081955 HDI Acquisition LLC. - $1,245,119 Term Loan 2023-01-01 2023-12-31 0000081955 GoNoodle, Inc. 2023-12-31 0000081955 BMP Swanson 2024-06-30 0000081955 Seybert’s Billiards Corporation - Warrant for 4% Membership Interest 2022-01-01 2022-12-31 0000081955 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0000081955 Seybert’s Billiards Corporation - 5.82 Common shares 2023-12-31 0000081955 Pressure Pro, Inc. 2024-01-01 2024-06-30 0000081955 rand:AutomotiveMember rand:InvestmentsAtFairValueMember rand:IndustryConcentrationRiskMember 2024-06-30 0000081955 us-gaap:FairValueInputsLevel3Member rand:BmpSwansonHoldcoLlcMember rand:LoanInvestmentsMember 2023-01-01 2023-06-30 0000081955 Filterworks Acquisition USA, LLC - $2,283,702 Term Note at 12% 2024-06-30 0000081955 Seybert’s Billiards Corporation - $1,435,435 Term Note at 12% 2023-12-31 0000081955 us-gaap:FairValueInputsLevel1Member 2024-06-30 0000081955 Inter-National Electronic Alloys LLC 2023-12-31 0000081955 us-gaap:FairValueInputsLevel3Member rand:HighlandAllAboutPeopleHoldingsIncMember 2024-01-01 2024-06-30 0000081955 Tilson Technology Management, Inc. - 120,000 Series B Preferred 2023-12-31 0000081955 BMP Food Service Supply Holdco, LLC $2,215,000 at 13% Second Amended and Restated Term Note 2023-12-31 0000081955 rand:InvestmentManagementAgreementMember 2024-01-01 2024-06-30 0000081955 us-gaap:FairValueInputsLevel3Member rand:FilterworksAcquisitionUsaLlcMember 2023-01-01 2023-06-30 0000081955 FCM Industries Holdco LLC - $420,000 Convertible Note at 10% 2024-01-01 2024-06-30 0000081955 FCM Industries Holdco LLC $3,380,000 Term Note at 13% 2023-01-01 2023-12-31 0000081955 Inter-National Electronic Alloys LLC - $3,288,235 Term Note at 12% 2024-01-01 2024-06-30 0000081955 us-gaap:FairValueInputsLevel3Member rand:NonControlAndNonAffiliateInvestmentsMember 2024-06-30 0000081955 Mezmeriz, Inc. - 1,554,565 Series Seed Preferred 2023-01-01 2023-12-31 0000081955 us-gaap:InvestmentUnaffiliatedIssuerMember 2023-12-31 0000081955 Tilson Technology Management, Inc. - *2.5% dividend payable quarterly 2024-06-30 0000081955 Mountain Regional Equipment Solutions - Warrant for 1% Membership Interest 2024-06-30 0000081955 us-gaap:FairValueInputsLevel3Member rand:GonoodleIncMember 2023-01-01 2023-06-30 0000081955 FCM Industries Holdco LLC - $420,000 Convertible Note at 10% 2023-01-01 2023-12-31 0000081955 Inter-National Electronic Alloys LLC - 75.3 Class B Preferred Units 2023-01-01 2023-12-31 0000081955 Control Investments 2023-01-01 2023-12-31 0000081955 us-gaap:FairValueInputsLevel3Member rand:LoanInvestmentsMember 2023-01-01 2023-06-30 0000081955 us-gaap:FairValueInputsLevel3Member us-gaap:DebtSecuritiesMember 2023-12-31 0000081955 Highland All About People Holdings, Inc. - $3,000,000 Term Note at 12% 2024-01-01 2024-06-30 0000081955 BMP Food Serv