Form 8-K - Current report

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: November 14, 2023
(Date of earliest event reported)

 

Firsthand Technology Value Fund, Inc.
(Exact name of registrant as specified in its charter)

 

Maryland	814-00830	27-3008946
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)
150 Almaden Blvd., Suite 1250 San Jose, CA		95113
(Address of principal executive offices)		(Zip Code)

 

[phone]
(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))

 

 

Item 8.01. Other Events

 

On November 14, 2023 Firsthand Technology Value Fund, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2023. The Company’s press release issued November 14, 2023 is attached as Exhibit 99.1.

 

Item 9.01. Financial Statements and Exhibits

 

(a) Financial statements:
            None
(b) Pro forma financial information:
            None
(c) Shell company transactions:
            None
(d) Exhibits

 

99.1      Press Release dated November 14, 2023.

 

 

SIGNATURE

 

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.

 

Dated: November 15, 2023	FIRSTHAND TECHNOLOGY VALUE FUND, INC.
	By:	/s/ Kevin Landis
		Kevin Landis
		President

 

 

Exhibit Index
Exhibit No.	Description
99.1	Press release dated November 14, 2023

News Release

 

 

 

Firsthand Technology Value Fund Announces Third Quarter
Financial Results, NAV of $0.10 Per Share

 

San Jose, CA, November 14, 2023 – Firsthand Technology Value Fund, Inc. (OTCQB: SVVC) (the “Fund”), a publicly traded venture capital fund that invests in technology and cleantech companies, announced today its financial results for the quarter ended September 30, 2023.

 

As of September 30, 2023, the Fund’s net assets were approximately $0.7 million, or $0.10 per share, compared with net assets of approximately $11.1 million, or $1.61 per share as of June 30, 2023. As of September 30, 2023, the Fund’s portfolio included public and private securities valued at approximately $8.1 million, or $1.18 per share, which includes approximately $0.04 per share in cash and cash equivalents.

 

Portfolio Summary (as of 9/30/23)

 

Investment	Fair Value1,	Fair Value per Share1,2
Equity/Debt Investments	$7.80 million	$1.13
Cash/Cash Equivalents	$0.31 million	$0.04
Other Assets	$0.03 million	$0.00
Total Assets	$8.14 million	$1.18
Total Liabilities	$7.46 million	$1.08
Net Assets	$0.68 million	$0.10

 

1

Numbers may not sum due to rounding.

2

Total shares outstanding: 6,893,056.

 

 

News Release

 

During the third quarter of 2023, the Valuation Committee, which was composed of two directors, adjusted the fair values of the private companies in our portfolio. In arriving at these determinations and consistent with the Fund’s valuation procedures, and ASC 820, the Valuation Committee took into account information from an independent valuation firm and considered many factors, including the performance of the portfolio companies, recent transactions in the companies’ securities, as well as the impact of changes in market multiples within certain sectors.

 

During the quarter, the Fund suffered material setbacks in IntraOp Medical Corp. and Wrightspeed, Inc., two of its largest holdings at the start of the quarter. As a result, the total assets of the Fund were reduced dramatically by September 30, 2023.

 

Effective September 30, 2023, the Fund has entered into a fee waiver agreement with its investment adviser, Firsthand Capital Management, Inc. (“FCM”). Pursuant to the terms of this agreement, FCM has agreed to (1) waive future accruals of the base management fee starting October 1, 2023, through December 31, 2024, with future recoupment to the extent permitted by the Investment Management Agreement between the Fund and FCM, and (2) waive $2.5 million of base management fee that has been accrued but unpaid as of September 30, 2023, subject to recoupment to the extent permitted under the fee waiver agreement.

 

For the quarter ended September 30, 2023, the Fund reported a total investment loss of approximately $0.2 million. After fees and expenses, including the aforementioned fee waiver, the Fund reported net investment income of approximately $1.9 million. The Fund reported net realized and unrealized losses on investments of approximately $12.3 million for the quarter.

 

Throughout the quarter, the Fund continued its efforts to manage its portfolio prudently, including working with its portfolio companies and their management teams to seek to enhance performance and uncover potential exit opportunities.

 

About Firsthand Technology Value Fund

 

Firsthand Technology Value Fund, Inc. is a publicly traded venture capital fund that invests in technology and cleantech companies. More information about the Fund and its holdings can be found online at www.firsthandtvf.com.

 

# # #

 

 

News Release

 

The Fund is a non-diversified, closed-end investment company that elected to be treated as a business development company under the Investment Company Act of 1940. The Fund’s investment objective is to seek long-term growth of capital. Under normal circumstances, the Fund will invest at least 80% of its total assets for investment purposes in technology and cleantech companies. An investment in the Fund involves substantial risks, some of which are highlighted below. Please see the Fund’s public filings for more information about fees, expenses and risk. Past investment results do not provide any assurances about future results.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains “forward-looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Fund’s historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions, regulatory and legal changes, technology and cleantech industry risk, valuation risk, non-diversification risk, interest rate risk, tax risk, and other risks discussed in the Fund’s filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objectives will be attained. We acknowledge that, notwithstanding the foregoing, the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995 does not apply to investment companies such as us.

 

Contact:

Phil Mosakowski

Firsthand Capital Management, Inc.

[phone]

[e-mail]

Cover	Nov. 14, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 14, 2023
Entity File Number	814-00830
Entity Registrant Name	Firsthand Technology Value Fund, Inc.
Entity Central Index Key	0001495584
Entity Tax Identification Number	27-3008946
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	150 Almaden Blvd.
Entity Address, Address Line Two	Suite 1250
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95113
City Area Code	(800)
Local Phone Number	976-8776
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false

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