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0000081955
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2024-08-06
2024-08-06
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of report (Date of earliest event reported): August 6, 2024
RAND
CAPITAL CORPORATION
(Exact
Name of Registrant as Specified in Its Charter)
New
York |
|
814-00235 |
|
16-0961359 |
(State
or Other Jurisdiction
of
Incorporation) |
|
(Commission
File
Number) |
|
(I.R.S.
Employer
Identification
Number) |
1405
Rand Building, Buffalo, NY 14203
(Address
of Principal Executive Offices) (Zip Code)
(716)
853-0802
(Registrant’s
Telephone Number, Including Area Code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
|
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Common
Stock, $0.10 par value |
|
RAND |
|
Nasdaq
Capital Market |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405)
or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
2.02. Results of Operations and Financial Condition.
On
August 6, 2024, Rand Capital Corporation (the “Company”) issued a press release announcing its results for the second quarter
ended June 30, 2024. A copy of the release is furnished with this report as Exhibit 99.1 and is incorporated by reference into this Item
2.02.
The
information contained in this report under Item 2.02 is being furnished and shall not be deemed filed for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section.
The information contained in this report under Item 2.02 shall not be incorporated by reference into any registration statement or other
document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
Item
7.01. Regulation FD Disclosure.
The
Company has updated its earnings conference call slide presentation for the second quarter ended June 30, 2024, and will make it available
on the Company’s website at www.randcapital.com, under “Investors”. The slide presentation will be referenced during
the Company’s earnings conference call. The information found on, or otherwise accessible through, the Company’s website
is not incorporated by reference herein.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits
Exhibit
Number |
|
Description
of Exhibit |
99.1 |
|
Press Release, dated August 6, 2024. |
104 |
|
Cover
Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
RAND
CAPITAL CORPORATION |
|
|
|
Date:
August 6, 2024 |
|
|
|
|
|
|
By:
|
/s/
Margaret Brechtel |
|
Name:
|
Margaret Brechtel |
|
Title: |
Chief Financial Officer |
Exhibit
99.1
![](https://www.sec.gov/Archives/edgar/data/81955/000149315224030363/ex99-1_001.jpg)
|
NEWS
RELEASE |
14 Lafayette Square, Suite 1405 ● Buffalo, New York 14203 |
FOR
IMMEDIATE RELEASE
Rand
Capital Reports 18% Increase in Total Investment Income
for
Second Quarter 2024
| ● | Total
investment income increased 18% to $2.1 million for the quarter compared with the second
quarter last year driven by strong growth in interest income from an expanded portfolio of
debt investments |
| ● | Net
asset value per share (“NAV”) was $26.56 at June 30, 2024, up 11% from March
31, 2024 and up 13% from year-end 2023 |
| ● | Capitalized
on market conditions with the sale of certain BDC holdings that resulted in a realized gain
of $1.3 million |
| ● | Reduced
debt balance $2.0 million during the quarter and repaid an additional $2.3 million subsequent
to quarter-end |
| ● | Portfolio
company SciAps expected to be acquired in 2024 after definitive purchase agreement signed |
| ● | Announced
a quarterly dividend of $0.29 per share for third quarter 2024 |
BUFFALO,
NY, August 6, 2024 – Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business
development company providing alternative financing for lower middle market companies, announced its results for the second quarter ended
June 30, 2024.
Daniel
P. Penberthy, President and Chief Executive Officer of Rand, commented, “We are consistent and persistent in the execution of our
strategy, driving strong growth in total investment income through prudent and strategic investments in income-generating debt instruments.
During the quarter, our efforts to optimize the portfolio, including selective exits, generated capital that we advantageously deployed
to improve our balance sheet. This positions us well for future growth opportunities. Additionally, we look forward to leveraging the
capital expected from the pending sale of our portfolio investment company, SciAps, which we had previously announced and is expected
to close later this year.
“Looking
ahead, our plan is to continue scaling our business through new investments and also reinvesting in high-potential existing portfolio
companies. Our goal is to focus on new debt investments in smaller opportunities, replicating our past successes in helping these companies
grow. We believe this will cultivate a robust and steady income stream, strengthening our ability to increase cash dividends over the
long term.”
Second
Quarter Highlights (compared with the prior-year period unless otherwise noted)
| ● | Total
investment income grew $321,000, or 18%, to $2.1 million, which reflected a 35% increase
in interest from portfolio companies, partially offset by lower dividend and fee income. |
| ● | Total
expenses were $2.7 million compared with $1.3 million in last year’s second quarter.
The change largely reflects a $1.2 million increase in capital gains incentive fees to the
Company’s external investment adviser. The increase in total expenses also reflects
$393,000 in interest expense from the senior revolving credit facility compared with $259,000
for the second quarter of 2023. |
Rand Capital Reports 18% Increase in Total Investment Income for Second Quarter 2024 August 6, 2024 Page 2 of 7 |
| ● | Adjusted
expenses, which exclude capital gains incentive fees and is a non-GAAP financial measure,
were $1.0 million compared with $816,000 in the second quarter of 2023. See the attached
description of this non-GAAP financial measure and reconciliation table for adjusted expenses. |
| ● | Net
investment loss was $517,000, or $0.20 per share, compared with net investment income of
$493,000, or $0.19 per share, in the second quarter of 2023. Adjusted net investment income
per share, a non-GAAP financial measure, which excludes the capital gains incentive fee accrual
expense, was $0.44 per share, up 16% from $0.38 per share in last year’s second quarter.
See the attached description of this non-GAAP financial measure and reconciliation table
for adjusted net investment income per share. |
Portfolio
and Investment Activity
As
of June 30, 2024, Rand’s portfolio included investments with a fair value of $87.1 million across 26 portfolio
businesses. This was an increase of $9.9 million, or 13%, from December 31, 2023, and reflected new and follow-on investments and
valuation adjustments in multiple portfolio companies, partially offset by stock sales and other portfolio company loan repayments.
At June 30, 2024, Rand’s portfolio was comprised of approximately 66% in debt investments, 32% in equity investments in
private companies, and 2% in publicly traded equities of other BDCs. The annualized weighted average yield of debt investments,
which includes PIK interest, was 13.8% at June 30, 2024, compared with 13.6% at the end of 2023.
Second
quarter 2024:
| ● | Funded
a follow-on equity investment of $108,000 in Food Service Supply Holdco LLC (FSS). Rand’s
total debt and equity investment in FSS had a fair value of $7.5 million at quarter-end. |
| ● | Sold
shares in three publicly traded BDCs for total proceeds of $3.3 million, which included a
realized gain of $1.3 million. |
| ● | Received
$740,000 principal loan repayment from Pressure Pro, Inc. |
| ● | Realized
a gain of $397,000 from a partial asset sale of a Tilson affiliated company. |
| ● | At
quarter-end, Rand’s total debt and equity investment in SciAps had a fair value of
$10.8 million. |
| ● | Exited
remaining equity investment in KNOA Software. |
Liquidity
and Capital Resources
Cash
was $2.3 million at June 30, 2024. The Company also held shares valued at approximately $1.3 million in other publicly traded
BDCs, which are available for future operational and liquidity needs.
During
the quarter, Rand reduced its outstanding borrowings by $2.0 million, leaving a balance of $17.2 million on its existing
$25.0 million senior secured revolving credit facility at June 30, 2024. The outstanding borrowings carried an interest rate of 8.8%
at quarter-end. Subsequent to quarter-end, Rand repaid an additional $2.3 million on its outstanding borrowings.
The
Company did not repurchase any outstanding common stock during the second quarter of 2024.
Dividends
On
May 8, 2024, Rand declared its regular quarterly cash dividend distribution of $0.29 per share, which was paid during the second quarter
to shareholders of record as of May 31, 2024.
On
July 31, 2024, Rand declared its regular quarterly cash dividend distribution of $0.29 per share. The cash dividend will be distributed
on or about September 13, 2024, to shareholders of record as of August 30, 2024.
Rand Capital Reports 18% Increase in Total Investment Income for Second Quarter 2024 August 6, 2024 Page 3 of 7 |
Webcast
and Conference Call
Rand
will host a conference call and webcast on Tuesday August 6, 2024, at 1:30 p.m. Eastern Time, to review its financial results. The review
will be accompanied by a slide presentation, which will be available on Rand’s website at www.randcapital.com in the “Investor
Relations” section. Rand’s conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored
on Rand’s website at www.randcapital.com under “Investor Relations” where the replay will also be available.
A
telephonic replay will be available from 5:30 p.m. ET on the day of the call through Tuesday, August 20, 2024. To listen to the archived
call, dial (412) 317-6671 and enter replay pin number 13747031. A transcript of the call will also be posted once available.
ABOUT
RAND CAPITAL
Rand
Capital (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize
total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in
privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand invests
in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess
of $1.5 million. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC.
Additional information can be found at the Company’s website where it regularly posts information: www.randcapital.com.
Safe
Harbor Statement
This
press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited
to statements regarding the strategy of the Company and its outlook; statements regarding pending sale of portfolio company SciAps and
the timing for the expected closing of such transaction; statements regarding the implementation of the Company’s strategy and
the growth of its dividend; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements
concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words
“may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,”
“seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,”
“could,” “project,” “predict,” “continue,” “target” or other similar words
or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect,
actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements
should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could
cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory
and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time
to time in Rand’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s annual
report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently,
such forward-looking statements should be regarded as Rand’s current plans, estimates and beliefs. Except as required by applicable
law, Rand assumes no obligation to update the forward-looking information contained in this release.
Contacts:
Company: |
|
Investors:
|
Daniel
P. Penberthy |
|
Deborah
K. Pawlowski / Craig P. Mychajluk |
President
and CEO |
|
Kei
Advisors LLC |
716.853.0802 |
|
716-843-3908
/ 716-843-3832 |
dpenberthy@randcapital.com |
|
dpawlowski@keiadvisors.com
/ cmychajluk@keiadvisors.com |
FINANCIAL
TABLES FOLLOW
Rand Capital Reports 18% Increase in Total Investment Income for Second Quarter 2024 August 6, 2024 Page 4 of 7 |
Rand
Capital Corporation and Subsidiaries
Consolidated
Statements 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 | |
| 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 | |
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 | |
Rand Capital Reports 18% Increase in Total Investment Income for Second Quarter 2024 August 6, 2024 Page 5 of 7 |
Rand
Capital Corporation and Subsidiaries
Consolidated
Statements of Operations
(Unaudited)
| |
Three months ended June 30, 2024 | | |
Three months ended June 30, 2023 | | |
Six months ended June 30, 2024 | | |
Six months ended June 30, 2023 | |
Investment income: | |
| | | |
| | | |
| | | |
| | |
Interest from portfolio companies: | |
| | | |
| | | |
| | | |
| | |
Control investments | |
$ | 198,885 | | |
$ | 179,922 | | |
$ | 386,368 | | |
$ | 330,838 | |
Affiliate investments | |
| 1,192,116 | | |
| 941,201 | | |
| 2,358,201 | | |
| 1,729,022 | |
Non-Control/Non-Affiliate Investments | |
| 604,226 | | |
| 352,417 | | |
| 1,064,306 | | |
| 710,583 | |
Total interest from portfolio companies | |
| 1,995,227 | | |
| 1,473,540 | | |
| 3,808,875 | | |
| 2,770,443 | |
Interest from other investments: | |
| | | |
| | | |
| | | |
| | |
Non-Control/Non-Affiliate Investments | |
| 144 | | |
| 104 | | |
| 2,058 | | |
| 236 | |
Total interest from other investments | |
| 144 | | |
| 104 | | |
| 2,058 | | |
| 236 | |
Dividend and other investment income: | |
| | | |
| | | |
| | | |
| | |
Affiliate investments | |
| 13,125 | | |
| 59,677 | | |
| 26,250 | | |
| 406,825 | |
Non-Control/Non-Affiliate Investments | |
| 60,050 | | |
| 132,920 | | |
| 198,760 | | |
| 260,515 | |
Total dividend and other investment income | |
| 73,175 | | |
| 192,597 | | |
| 225,010 | | |
| 667,340 | |
Fee income: | |
| | | |
| | | |
| | | |
| | |
Control investments | |
| 4,516 | | |
| 4,311 | | |
| 9,032 | | |
| 8,211 | |
Affiliate investments | |
| 54,815 | | |
| 138,902 | | |
| 128,535 | | |
| 206,744 | |
Non-Control/Non-Affiliate Investments | |
| 8,272 | | |
| 5,978 | | |
| 29,858 | | |
| 13,956 | |
Total fee income | |
| 67,603 | | |
| 149,191 | | |
| 167,425 | | |
| 228,911 | |
Total investment income | |
| 2,136,149 | | |
| 1,815,432 | | |
| 4,203,368 | | |
| 3,666,930 | |
Expenses: | |
| | | |
| | | |
| | | |
| | |
Base management fee | |
| 322,672 | | |
| 255,867 | | |
| 625,267 | | |
| 501,260 | |
Capital gains incentive fees | |
| 1,641,000 | | |
| 491,000 | | |
| 1,753,300 | | |
| 782,000 | |
Interest expense | |
| 393,172 | | |
| 258,912 | | |
| 783,192 | | |
| 417,312 | |
Professional fees | |
| 91,460 | | |
| 100,307 | | |
| 323,767 | | |
| 271,282 | |
Stockholders and office operating | |
| 82,667 | | |
| 85,080 | | |
| 151,695 | | |
| 149,384 | |
Directors’ fees | |
| 66,550 | | |
| 67,391 | | |
| 130,400 | | |
| 131,241 | |
Administrative fees | |
| 40,000 | | |
| 37,250 | | |
| 78,167 | | |
| 74,500 | |
Insurance | |
| 10,380 | | |
| 10,380 | | |
| 23,424 | | |
| 23,340 | |
Corporate development | |
| 4,881 | | |
| 554 | | |
| 10,426 | | |
| 4,267 | |
Total expenses | |
| 2,652,782 | | |
| 1,306,741 | | |
| 3,879,638 | | |
| 2,354,586 | |
Net investment (loss) income before income taxes: | |
| (516,633 | ) | |
| 508,691 | | |
| 323,730 | | |
| 1,312,344 | |
Income taxes, including excise tax expense | |
| 562 | | |
| 16,061 | | |
| 1,340 | | |
| 104,798 | |
Net investment (loss) income | |
| (517,195 | ) | |
| 492,630 | | |
| 322,390 | | |
| 1,207,546 | |
Net realized gain on sales and dispositions of investments: | |
| | | |
| | | |
| | | |
| | |
Affiliate investments | |
| (831,891 | ) | |
| 2,537,765 | | |
| (831,891 | ) | |
| 2,596,094 | |
Non-Control/Non-Affiliate Investments | |
| 1,259,999 | | |
| 1,280,482 | | |
| 4,710,091 | | |
| 1,275,541 | |
Net realized gain on sales and dispositions of investments, before income taxes | |
| 428,108 | | |
| 3,818,247 | | |
| 3,878,200 | | |
| 3,871,635 | |
Income tax expense | |
| — | | |
| 338,158 | | |
| — | | |
| 338,158 | |
Net realized gain on sales and dispositions of investments | |
| 428,108 | | |
| 3,480,089 | | |
| 3,878,200 | | |
| 3,533,477 | |
Net change in unrealized appreciation/depreciation on investments: | |
| | | |
| | | |
| | | |
| | |
Affiliate investments | |
| 8,849,945 | | |
| (886,698 | ) | |
| 8,749,945 | | |
| (886,698 | ) |
Non-Control/Non-Affiliate Investments | |
| (1,070,919 | ) | |
| (480,572 | ) | |
| (3,861,215 | ) | |
| 921,401 | |
Change in unrealized appreciation/depreciation before income taxes | |
| 7,779,026 | | |
| (1,367,270 | ) | |
| 4,888,730 | | |
| 34,703 | |
Deferred income tax benefit | |
| (47,834 | ) | |
| (66,441 | ) | |
| (47,834 | ) | |
| (66,441 | ) |
Net change in unrealized appreciation/depreciation on investments | |
| 7,826,860 | | |
| (1,300,829 | ) | |
| 4,936,564 | | |
| 101,144 | |
Net realized and unrealized gain on investments | |
| 8,254,968 | | |
| 2,179,260 | | |
| 8,814,764 | | |
| 3,634,621 | |
Net increase in net assets from operations | |
$ | 7,737,773 | | |
$ | 2,671,890 | | |
$ | 9,137,154 | | |
$ | 4,842,167 | |
Weighted average shares outstanding | |
| 2,581,021 | | |
| 2,581,021 | | |
| 2,581,021 | | |
| 2,581,021 | |
Basic and diluted net increase in net assets from operations per share | |
$ | 3.00 | | |
$ | 1.04 | | |
$ | 3.54 | | |
$ | 1.88 | |
Rand Capital Reports 18% Increase in Total Investment Income for Second Quarter 2024 August 6, 2024 Page 6 of 7 |
Rand
Capital Corporation and Subsidiaries
Consolidated
Statements of Changes in Net Assets
(Unaudited)
| |
Three months ended June 30, 2024 | | |
Three months ended June 30, 2023 | | |
Six months ended June 30, 2024 | | |
Six months ended June 30, 2023 | |
Net assets at beginning of period | |
$ | 61,569,339 | | |
$ | 59,375,393 | | |
$ | 60,815,213 | | |
$ | 57,721,320 | |
Net investment (loss) income | |
| (517,195 | ) | |
| 492,630 | | |
| 322,390 | | |
| 1,207,546 | |
Net realized gain on sales and dispositions of investments | |
| 428,108 | | |
| 3,480,089 | | |
| 3,878,200 | | |
| 3,533,477 | |
Net change in unrealized appreciation/depreciation on investments | |
| 7,826,860 | | |
| (1,300,829 | ) | |
| 4,936,564 | | |
| 101,144 | |
Net increase in net assets from operations | |
| 7,737,773 | | |
| 2,671,890 | | |
| 9,137,154 | | |
| 4,842,167 | |
Declaration of dividend | |
| (748,496 | ) | |
| (645,255 | ) | |
| (1,393,751 | ) | |
| (1,161,459 | ) |
Net assets at end of period | |
$ | 68,558,616 | | |
$ | 61,402,028 | | |
$ | 68,558,616 | | |
$ | 61,402,028 | |
Rand Capital Reports 18% Increase in Total Investment Income for Second Quarter 2024 August 6, 2024 Page 7 of 7 |
Rand
Capital Corporation and Subsidiaries
Reconciliation
of GAAP Total Expense to Non-GAAP Adjusted Expenses
(Unaudited)
In
addition to reporting total expenses, which is a U.S. generally accepted accounting principle (“GAAP”) financial measure,
Rand presents adjusted expenses, which is a non-GAAP financial measure. Adjusted expenses is defined
as GAAP total expenses removing the effect of any expenses for capital gains incentive fees accrual. GAAP total expenses is the most
directly comparable GAAP financial measure. Rand believes that adjusted expenses provides useful information to investors regarding financial
performance because it is a method the Company uses to measure its financial and business trends related to its results of operations.
The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared
in accordance with GAAP.
| |
Three months ended June 30, 2024 | | |
Three months ended June 30, 2023 | | |
Six months ended June 30, 2024 | | |
Six months ended June 30, 2023 | |
| |
| | |
| | |
| | |
| |
Total expenses | |
$ | 2,652,782 | | |
$ | 1,306,741 | | |
$ | 3,879,638 | | |
$ | 2,354,586 | |
Exclude expenses for capital gains incentive fees | |
| 1,641,000 | | |
| 491,000 | | |
| 1,753,300 | | |
| 782,000 | |
Adjusted total expenses | |
$ | 1,011,782 | | |
$ | 815,741 | | |
$ | 2,126,338 | | |
$ | 1,572,586 | |
Reconciliation
of GAAP Net Investment (Loss) Income per Share to
Adjusted
Net Investment Income per Share
(Unaudited)
In
addition to reporting Net Investment (Loss) Income per Share, which is a GAAP financial measure, the Company presents Adjusted
Net Investment Income per Share, which is a non-GAAP financial measure. Adjusted Net Investment Income per Share is defined as GAAP Net
Investment (Loss) Income per Share removing the effect of any expenses for capital gains incentive fees. GAAP Net Investment (Loss) Income
per Share is the most directly comparable GAAP financial measure. Rand believes that Adjusted Net Investment Income per Share provides
useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and
business trends related to its results of operations. The presentation of this additional information is not meant to be considered in
isolation or as a substitute for financial results prepared in accordance with GAAP.
| |
Three months ended June 30, 2024 | | |
Three months ended June 30, 2023 | | |
Six months ended June 30, 2024 | | |
Six months ended June 30, 2023 | |
| |
| | |
| | |
| | |
| |
Net investment (loss) income per share | |
$ | (0.20 | ) | |
$ | 0.19 | | |
$ | 0.12 | | |
$ | 0.47 | |
Exclude expenses for capital gains incentive fees per share | |
| 0.64 | | |
| 0.19 | | |
| 0.68 | | |
| 0.30 | |
Adjusted net investment income per share | |
$ | 0.44 | | |
$ | 0.38 | | |
$ | 0.80 | | |
$ | 0.77 | |
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