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21,391 Series C Preferred2024-12-310000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest One2023-12-310000081955rand:BmpSwansonHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310000081955Seybert’s Billiards Corporation - $1,435,435 Term Note Through January 19, 20262025-06-300000081955ITA Acquisition, LLC - 1,124 Class A Preferred Units2024-12-310000081955rand:MAndTBankMemberrand:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2022-06-270000081955rand:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2024-04-012024-06-300000081955Tilson Technology Management, Inc. - 15,385 Series E Preferred2023-12-310000081955rand:TilsonTechnologyManagementIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310000081955Open Exchange, Inc. - 397,899 Series C Preferred2024-01-012024-12-310000081955rand:BlockerCorporationMember2025-06-300000081955SciAps, Inc. - 274,299 Series A1 Convertible Preferred2024-01-012024-12-310000081955Inter-National Electronic Alloys LLC d/b/a EFINEA - 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$1,435,435 Term Note2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:GonoodleIncMember2025-01-012025-06-300000081955rand:MAndTBankMemberrand:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-06-272022-06-270000081955rand:DsdOperatingLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955us-gaap:EstimateOfFairValueFairValueDisclosureMember2025-06-300000081955us-gaap:RevolvingCreditFacilityMember2024-04-012024-06-300000081955Highland All About People Holdings, Inc. - 1,000,000 Class A Units2024-12-310000081955rand:KnoaSoftwareIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955rand:BmpFoodServiceSupplyHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955FCM Industries Holdco LLC - $420,000 Convertible Note at 10%2023-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:HdiAcquisitionLlcMember2024-01-012024-06-300000081955SciAps, Inc. - 369,698 Series C1 Convertible Preferred2024-01-012024-12-310000081955Seybert’s Billiards Corporation - 5.82 Common shares2024-12-310000081955Mattison Avenue Holdings LLC - $5,500,000 Term Note2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:TilsonTechnologyManagementIncMemberus-gaap:EquitySecuritiesMember2025-01-012025-06-300000081955Mattison Avenue Holdings LLC. - $1,794,944 Third Amended, Restated and Consolidated Promissory Note2024-12-310000081955ITA Acquisition, LLC - $2,297,808 Fourth Amended and Restated Term Note at 3% (+11% PIK) through December 31, 20242024-12-310000081955BMP Swanson Holdco, LLC - Preferred Membership Interest for 9.24%2025-01-012025-06-300000081955us-gaap:CommonStockMember2024-12-310000081955Pressure Pro, Inc. - Warrant for 10% Membership Interest2025-06-300000081955ITA Acquisition, LLC 1,124 ITA Acquisition, LLC - 1,924 Class B Common Units.2025-06-300000081955Mobile RN Holdings LLC - 6,375 Class A Common Units2025-01-012025-06-300000081955rand:SciapsIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955Filterworks Acquisition USA, LLC - 417.7 shares Class A-0 Units2023-12-310000081955Mobile RN Holdings LLC d/b/a Mobile IV Nurses - 6,375 Class A Common Units2025-01-012025-06-300000081955GoNoodle, Inc. - 1,500,000 Secured Note2024-01-012024-12-310000081955Pressure Pro, Inc. - $3,000,000 Term Note at 12%2025-06-300000081955Mobile RN Holdings LLC d/b/a Mobile IV Nurses - $2,500,000 Term Note2025-01-012025-06-300000081955ITA Acquisition, LLC - $2,297,808 Fourth Amended and Restated Term Note at 3%2024-01-012024-12-310000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $2,215,0002024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:NonControlAndNonAffiliateLoanAndDebtInvestmentsMember2025-06-300000081955GoNoodle, Inc. - Warrant for 21,948 Series D Preferred2025-01-012025-06-300000081955us-gaap:CommonStockMember2024-01-012024-06-300000081955FCM Industries Holdco LLC - $3,380,000 Term Note at 13%2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:MattisonAvenueHoldingsLlcMember2024-01-012024-06-300000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $4,820,000 at 12%, $2,215,000 at 13%2024-01-012024-12-310000081955us-gaap:RetainedEarningsMember2025-01-012025-06-300000081955rand:StockDividendsDistributableMember2025-01-012025-06-300000081955Autotality (formerly Filterworks Acquisition USA, LLC) - $2,283,702 Amended Term Note2025-06-300000081955HDI Acquisition LLC. - $1,245,119 Term Loan2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMember2025-06-300000081955Caitec, Inc. - 150 Class A Units One2024-12-310000081955FCM Industries Holdco LLC - $3,380,000 Term Note at 13%2024-01-012024-12-310000081955SciAps, Inc. - 187,500 Series A Preferred2023-12-310000081955Filterworks Acquisition USA, LLC d/b/a Autotality -417.7 shares Class A-0 Units2024-12-310000081955Caitec, Inc. - 36,261 Series A Preferred One2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:BmpFoodServiceSupplyHoldcoLlcMemberus-gaap:EquitySecuritiesMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:ItaAcquisitionLlcMember2024-01-012024-06-300000081955us-gaap:InvestmentAffiliatedIssuerControlledMember2023-12-310000081955GoNoodle, Inc. - Warrant for 21,948 Series D Preferred2025-06-300000081955BMP Food Service Supply Holdco, LLC - 15.4% Preferred Interest2023-12-310000081955rand:AdministrationAgreementMember2025-01-012025-06-300000081955Tilson Technology Management, Inc. - 23,077 Series F Preferred2025-06-300000081955Tilson Technology Management, Inc. - 250 Class D-1 Units of SQF Holdco LLC2024-12-310000081955SciAps, Inc. - $2,090,000 Second Amended and Restated Secured Subordinated Promissory Note at 12%2024-12-3100000819552022-12-310000081955Mountain Regional Equipment Solutions - $3,000,000 Term Note2024-01-012024-12-310000081955Carolina Skiff LLC - 6.0825% Class A Common2025-01-012025-06-300000081955Tilson Technology Management, Inc. - 2.5% dividend payable quarterly2024-12-310000081955rand:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2025-01-012025-06-300000081955rand:MountainRegionalEquipmentSolutionsMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955Inter-National Electronic Alloys LLC - $3,288,235 Term Note at 12%2025-01-012025-06-300000081955Tilson Technology Management, Inc. - 211,567 A-1 Units of SQF Holdco LLC.2025-01-012025-06-300000081955Open Exchange, Inc. - 397,899 Common2024-12-310000081955us-gaap:RetainedEarningsMember2025-03-310000081955Highland All About People Holdings, Inc. - $3,000,000 Term Note at 12%2024-12-310000081955us-gaap:InvestmentUnaffiliatedIssuerMember2024-12-310000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $4,820,000 at 12%, $2,215,000 at 16%2024-12-310000081955Autotality (formerly Filterworks Acquisition USA, LLC) - $2,283,702 Amended Term Note2025-01-012025-06-300000081955Highland All About People Holdings, Inc. - 1,000,000 Class A Units2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:FilterworksAcquisitionUsaLlcMember2024-01-012024-06-300000081955Highland All About People Holdings, Inc. - $3,000,000 Term Note at 12%2023-12-310000081955Mobile RN Holdings LLC d/b/a Mobile IV Nurses - $2,500,000 Term Note2025-06-300000081955rand:MAndTBankMemberrand:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2025-06-300000081955Mobile RN Holdings LLC - 37,991 Common Units2025-06-300000081955Applied Image, Inc. - $1,750,000 Term Note at 10% (+2% PIK) through February 1, 20252024-12-310000081955Filterworks Acquisition USA, LLC - $2,283,702 Amended Term Note2024-01-012024-12-310000081955ITA Acquisition, LLC 1,124 ITA Acquisition, LLC - 1,924 Class B Common Units.2024-12-310000081955SciAps, Inc. - 187,500 Series A Preferred2024-12-310000081955rand:MountainRegionalEquipmentSolutionsMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-06-300000081955ITA Acquisition, LLC - $2,672,808 Fifth Amended and Restated Term Note2025-01-012025-06-300000081955GoNoodle, Inc. - 1,500,000 Secured Note2025-01-012025-06-300000081955Mezmeriz, Inc. - 1,554,565 Series Seed Preferred2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:ItaAcquisitionLlcMemberrand:LoanInvestmentsMember2024-01-012024-06-300000081955rand:HighlandAllAboutPeopleHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955rand:OpenExchangeIncMemberus-gaap:InvestmentUnaffiliatedIssuerMember2025-06-300000081955rand:BmpFoodServiceSupplyHoldcoLlcMember2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMemberrand:ItaAcquisitionLlcMember2025-01-012025-06-300000081955ITA Acquisition, LLC 1,924 Class B Common Units2025-06-300000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $2,215,000 at 13% (+3% PIK), due November 22, 20272024-12-310000081955Caitec, Inc. - $1,750,000 Subordinated Secured Promissory Note Modified to 14%2025-06-300000081955Tilson Technology Management, Inc. - 70,176 Series D Preferred2025-01-012025-06-300000081955rand:KnoaSoftwareIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955OnCore Golf Technology, Inc. - 300,483 Preferred AA2024-12-310000081955Seybert’s Billiards Corporation - $6,099,131 Third Amended and Restated Term Note at 12%2025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:GonoodleIncMemberus-gaap:DebtSecuritiesMember2024-01-012024-06-300000081955rand:SeybertBilliardsCorporationMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310000081955rand:TilsonTechnologyManagementIncMember2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:NonControlAndNonAffiliateEquityInvestmentsMember2025-06-300000081955Tilson Technology Management, Inc. - 70,176 Series D Preferred2023-12-310000081955Filterworks Acquisition USA, LLC d/b/a Autotality - $2,283,702 Amended Term Note Through March 31, 20252024-12-310000081955srt:MinimumMember2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMemberrand:MattisonAvenueHoldingsLlcMember2024-01-012024-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:TilsonTechnologyManagementIncMember2025-01-012025-06-300000081955Filterworks Acquisition USA, LLC - 417.7 shares Class A-0 Units2024-01-012024-12-310000081955Mobile RN Holdings LLC d/b/a Mobile IV Nurses - $2,500,000 Term Note2024-12-310000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $4,820,0002024-12-310000081955PostProcess Technologies, Inc. - 360,002 Series A1 Preferred2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:ControlInvestmentsMember2025-06-300000081955us-gaap:SubsequentEventMemberrand:O2025Q3RegularDividendsMember2025-07-280000081955rand:FcmIndustriesHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955rand:ProfessionalAndBusinessServicesMember2025-06-300000081955rand:FcmIndustriesHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955ITA Acquisition, LLC - $2,672,808 Fifth Amended and Restated Term Note at 12%2025-06-300000081955Mountain Regional Equipment Solutions - $3,000,000 Term Note2024-12-310000081955Open Exchange, Inc. - 397,899 Series C Preferred2025-06-300000081955us-gaap:InvestmentAffiliatedIssuerMember2025-06-300000081955rand:CaitecIncMemberus-gaap:InvestmentUnaffiliatedIssuerMember2025-06-3000000819552024-01-012024-12-310000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $2,215,000 at 16% PIK through December 31, 20252025-06-300000081955us-gaap:CommonStockMember2025-01-012025-06-300000081955GoNoodle, Inc. - Warrant for 21,948 Series D Preferred2024-12-310000081955us-gaap:InvestmentAffiliatedIssuerControlledMember2025-01-012025-06-300000081955Microcision LLC - Membership Interest Purchase Warrant for 5%2025-06-300000081955Filterworks Acquisition USA, LLC - 417.7 shares Class A-0 Units2024-12-310000081955Pressure Pro, Inc. - $3,000,000 Term Note at 12%2025-01-012025-06-300000081955rand:TilsonTechnologyManagementIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955Mattison Avenue Holdings LLC. - $1,794,944 Third Amended, Restated and Consolidated Promissory Note2024-01-012024-12-310000081955Carolina Skiff LLC - 6.62% Premium Preferred Interest.2025-06-3000000819552025-01-012025-06-300000081955Filterworks Acquisition USA, LLC d/b/a Autotality - $2,283,702 Amended Term Note2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:BmpFoodServiceSupplyHoldcoLlcMemberus-gaap:DebtSecuritiesMember2025-01-012025-06-300000081955Open Exchange, Inc. - 397,899 Series C Preferred2025-01-012025-06-300000081955Mountain Regional Equipment Solutions - Warrant for 4% Membership Interest2025-06-300000081955Tilson Technology Management, Inc. - 120,000 Series B Preferred2024-12-310000081955rand:ManufacturingMember2024-12-310000081955Caitec, Inc. - 36,261 Series A Preferred2025-06-300000081955us-gaap:AdditionalPaidInCapitalMember2025-06-300000081955Caitec, Inc. - 36,261 Series A Preferred One2024-01-012024-12-310000081955rand:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2024-12-310000081955Mobile RN Holdings LLC - 6,375 Class A Common Units2024-12-310000081955us-gaap:InvestmentUnaffiliatedIssuerMember2024-04-012024-06-300000081955BMP Swanson Holdco, LLC - $1,600,000 Term Note at 12%2025-06-300000081955rand:SeybertBilliardsCorporationMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955Filterworks Acquisition USA, LLC - 626.2 shares Class A-1 Units2024-12-310000081955Mountain Regional Equipment Solutions - $3,000,000 Term Note at 14% PIK2025-01-012025-06-300000081955BMP Food Service Supply Holdco, LLC - 15.4% Preferred Interest2024-12-310000081955rand:ConsumerProductMember2024-12-310000081955Seybert’s Billiards Corporation - $1,435,435 Term Note Thereafter2025-06-300000081955BMP Food Service Supply Holdco, LLC - 15.4% Preferred Interest2024-01-012024-12-310000081955Mobile RN Holdings LLC d/b/a Mobile IV Nurses - 6,375 Class A Common Units2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMemberrand:FcmIndustriesHoldcoLlcMember2024-01-012024-06-300000081955Filterworks Acquisition USA, LLC - 626.2 shares Class A-1 Units2024-01-012024-12-310000081955Tilson Technology Management, Inc. - 70,176 Series D Preferred2024-12-310000081955us-gaap:FairValueInputsLevel3Member2023-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:FcmIndustriesHoldcoLlcMember2025-01-012025-06-300000081955SciAps, Inc. - Warrant to purchase Series D-1 Preferred2023-12-310000081955us-gaap:DebtSecuritiesMember2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:HdiAcquisitionLlcMemberus-gaap:DebtSecuritiesMember2024-01-012024-06-300000081955Caitec, Inc. - 36,261 Series A Preferred2025-01-012025-06-300000081955rand:InterNationalElectronicAlloysLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955ITA Acquisition, LLC - $1,500,000 Term Note2023-12-3100000819552024-12-310000081955Autotality (formerly Filterworks Acquisition USA, LLC) - 417.7 shares Class A-0 Units2025-01-012025-06-300000081955rand:InterNationalElectronicAlloysLlcMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:MicrocisionLlcMemberus-gaap:EquitySecuritiesMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Member2024-03-310000081955us-gaap:FairValueInputsLevel3Memberrand:GonoodleIncMemberus-gaap:EquitySecuritiesMember2025-01-012025-06-300000081955Mobile RN Holdings LLC d/b/a Mobile IV Nurses - $2,500,000 Term Note2024-01-012024-12-3100000819552025-01-240000081955srt:MaximumMemberrand:ScenarioTwoMember2025-01-012025-06-300000081955BMP Swanson Holdco, LLC - $1,600,000 Term Note at 12%2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:HighlandAllAboutPeopleHoldingsIncMember2025-01-012025-06-300000081955us-gaap:TreasuryStockCommonMember2024-03-310000081955Caitec, Inc. - 150 Class A Units2024-12-310000081955rand:InterNationalElectronicAlloysLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955Caitec, Inc. - 150 Class A Units One2025-06-300000081955Caitec, Inc. - 36,261 Series A Preferred One2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:ItaAcquisitionLlcMember2025-01-012025-06-300000081955rand:FilterworksAcquisitionUsaLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955DSD Operating, LLC - 1,067 Class A Preferred shares2024-01-012024-12-310000081955Knoa Software, Inc. - 1,876,922 Series B Preferred2024-01-012024-12-310000081955rand:CaitecIncMember2025-01-012025-06-300000081955Mountain Regional Equipment Solutions - Warrant for 4% Membership Interest2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:InterNationalElectronicAlloysLlcMember2024-01-012024-06-300000081955Tilson Technology Management, Inc. - 15,385 Series E Preferred2024-12-310000081955BMP Food Service Supply Holdco, LLC - 15.4% Preferred Interest2025-06-300000081955Carolina Skiff LLC - 6.0825% Class A Common Membership Interest2024-12-310000081955Mezmeriz, Inc. - 1,554,565 Series Seed Preferred2024-12-310000081955SciAps, Inc. - $2,090,000 Second Amended and Restated Secured Subordinated Promissory Note at 12%2024-01-012024-12-310000081955Tilson Technology Management, Inc. - 211,567 A-1 Units of SQF Holdco LLC.2023-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMember2025-01-012025-06-300000081955srt:MaximumMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:SciapsIncMember2024-01-012024-06-300000081955us-gaap:CommonStockMember2024-03-310000081955Inter-National Electronic Alloys LLC d/b/a EFINEA - 75.3 Class B Preferred Units2025-06-300000081955Seybert’s Billiards Corporation - 5.82 Common shares2025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:BmpFoodServiceSupplyHoldcoLlcMemberus-gaap:EquitySecuritiesMember2024-01-012024-06-300000081955BMP Swanson Holdco, LLC - Preferred Membership Interest for 9.29%2024-12-310000081955rand:PressureProIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310000081955rand:ScenarioTwoMember2025-01-012025-06-300000081955rand:CreditAgreementMembersrt:MinimumMember2022-06-270000081955us-gaap:FairValueInputsLevel3Memberrand:LumiousMemberrand:LoanInvestmentsMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:GonoodleIncMember2024-01-012024-06-300000081955us-gaap:EquitySecuritiesMember2025-06-300000081955us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2024-12-310000081955Applied Image, Inc. - Warrant for 1,167 shares2025-01-012025-06-300000081955Mountain Regional Equipment Solutions - $3,000,000 Term Note2025-01-012025-06-300000081955Seybert’s Billiards Corporation - $1,435,435 Term Note, Thereafter 14%2025-06-300000081955us-gaap:RetainedEarningsMember2024-03-310000081955rand:EastAssetManagementMember2019-11-012019-11-300000081955ITA Acquisition, LLC - $1,500,000 Term Note at 3% (+11% PIK) through December 31, 20242024-12-310000081955rand:BmpSwansonHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-06-300000081955Seybert’s Billiards Corporation - $4,139,444 Term Note at 12%2024-12-310000081955us-gaap:TreasuryStockCommonMember2025-03-310000081955rand:CaitecIncMember2024-01-012024-12-310000081955us-gaap:RevolvingCreditFacilityMember2025-01-012025-06-300000081955BMP Food Service Supply Holdco, LLC - $4,820,000 at 12% Second Amended and Restated Term Note2024-12-310000081955us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955rand:AppliedImageIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955rand:ScenarioThreeMembersrt:MinimumMember2025-01-012025-06-300000081955Tilson Technology Management, Inc. - 23,077 Series F Preferred2023-12-310000081955rand:NetRealizedGainLossOnSalesAndDispositionsOfInvestmentsMember2024-01-012024-06-300000081955rand:BmpSwansonHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955rand:ItaAcquisitionLlcMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2025-06-300000081955rand:AdministrationAgreementMember2024-01-012024-06-300000081955GoNoodle, Inc. - Warrant for 47,324 Series C Preferred2024-12-310000081955us-gaap:RevolvingCreditFacilityMember2024-01-012024-06-300000081955Lumious - $850,000 Replacement Term Note2025-01-012025-06-300000081955rand:CaitecIncMemberus-gaap:InvestmentUnaffiliatedIssuerMember2024-12-3100000819552024-06-300000081955BMP Swanson Holdco, LLC - $1,600,000 Term Note at 12%2024-01-012024-12-310000081955Caitec, Inc. - $1,750,000 Subordinated Secured Promissory Note One Modified to 14%2025-06-300000081955Tilson Technology Management, Inc. - 21,391 Series C Preferred2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Member2024-01-012024-06-300000081955ITA Acquisition, LLC - 1,124 Class A Preferred Units2025-06-300000081955Autotality (formerly Filterworks Acquisition USA, LLC) - 626.2 shares Class A-1 Units2025-06-300000081955rand:SeybertsBilliardsCorporationMember2025-01-012025-06-300000081955Highland All About People Holdings, Inc. - $3,000,000 Term Note at 12%2024-01-012024-12-310000081955Filterworks Acquisition USA, LLC d/b/a Autotality - $2,283,702 Amended Term Note Thereafter2024-12-310000081955SciAps, Inc. - 117,371 Series B Convertible Preferred2024-01-012024-12-310000081955Autotality (formerly Filterworks Acquisition USA, LLC) -$2,283,702 Amended Term Note at 12% (+2% PIK) due March 31, 2026.2025-06-300000081955rand:InvestmentManagementAgreementMember2024-04-012024-06-300000081955Inter-National Electronic Alloys LLC - 75.3 Class B Preferred Units2025-06-300000081955rand:SoftwareMember2024-12-310000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest2025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:InterNationalElectronicAlloysLlcMemberus-gaap:EquitySecuritiesMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:AffiliateLoanAndDebtInvestmentsMember2025-06-300000081955SciAps, Inc. - 117,371 Series B Convertible Preferred2024-12-310000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest2024-01-012024-12-310000081955PostProcess Technologies, Inc. - 360,002 Series A1 Preferred2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMember2023-12-310000081955DSD Operating, LLC - $3,063,276 Term Note at 12% (+2% PIK) due September 30, 20262024-12-310000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest One2024-01-012024-12-310000081955rand:FcmIndustriesHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-06-300000081955Mountain Regional Equipment Solutions - 37,991 Common Units2024-12-310000081955us-gaap:RetainedEarningsMember2024-01-012024-06-300000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note2025-01-012025-06-300000081955rand:AutotalityMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-06-300000081955BMP Swanson Holdco, LLC - Preferred Membership Interest for 9.24%2025-06-300000081955Autotality (formerly Filterworks Acquisition USA, LLC) - $2,283,702 Amended Term Note Through March 31, 20262025-06-300000081955rand:ScenarioOneMembersrt:MaximumMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMember2024-03-310000081955rand:FcmIndustriesHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310000081955rand:OpenExchangeIncMemberus-gaap:InvestmentUnaffiliatedIssuerMember2024-12-310000081955rand:SeybertBilliardsCorporationMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955rand:BmpSwansonHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955Pressure Pro, Inc. - $3,000,000 Term Note at 12%2023-12-310000081955rand:AdministrationAgreementMember2025-04-012025-06-300000081955us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955rand:AutotalityMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $4,820,0002024-01-012024-12-310000081955us-gaap:AdditionalPaidInCapitalMember2024-12-310000081955Seybert’Seybert’s Billiards Corporation - $6,099,131 Fourth Amended and Restated Term Note, $4,299,131s Billiards Corporation - 6,099,131 Fourth Amended and Restated Term Note, $1,800,0002025-06-300000081955Seybert’s Billiards Corporation - 5.82 Common shares2024-01-012024-12-310000081955us-gaap:CommonStockMember2025-03-310000081955us-gaap:InvestmentAffiliatedIssuerMember2024-12-310000081955PostProcess Technologies, Inc. - 137,054 Series A Preferred2025-01-012025-06-300000081955rand:ItaAcquisitionLlcMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2025-01-012025-06-300000081955us-gaap:AdditionalPaidInCapitalMember2024-03-310000081955Inter-National Electronic Alloys LLC - $3,288,235 Term Note at 12%2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:CarolinaSkiffLlcCarolinaSkiffMember2025-01-012025-06-300000081955Tilson Technology Management, Inc. - 21,391 Series C Preferred2024-01-012024-12-310000081955us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-06-300000081955rand:InvestmentManagementAgreementMember2024-12-310000081955us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955Pressure Pro, Inc. - $3,000,000 Term Note2024-12-310000081955us-gaap:AdditionalPaidInCapitalMember2024-06-300000081955Inter-National Electronic Alloys LLC - 75.3 Class B Preferred Units2025-01-012025-06-3000000819552025-08-040000081955Highland All About People Holdings, Inc. - $3,000,000 Term Note at 12%2025-06-300000081955rand:O2025Q1DividendsMember2025-03-282025-03-280000081955Carolina Skiff LLC - 6.0825% Class A Common2025-06-300000081955rand:O2025Q2DividendsMember2025-06-130000081955rand:TilsonTechnologyManagementIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:SeybertBilliardsCorporationMemberus-gaap:EquitySecuritiesMember2025-01-012025-06-300000081955Mountain Regional Equipment Solutions - $3,000,000 Term Note Thereafter 14%2025-06-300000081955ITA Acquisition, LLC - $1,500,000 Term Note at 12%2025-06-300000081955SciAps, Inc. - 147,059 Series D Convertible Preferred2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:CarolinaSkiffLlcCarolinaSkiffMemberus-gaap:EquitySecuritiesMember2025-01-012025-06-3000000819552024-01-012024-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:FilterworksAcquisitionUsaLlcMemberus-gaap:DebtSecuritiesMember2024-01-012024-06-300000081955Seybert’s Billiards Corporation - $6,099,131 Fourth Amended and Restated Term Note at 12%2025-01-012025-06-300000081955Seybert’s Billiards Corporation - $1,435,435 Term Note at 12%2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:SciapsIncMemberus-gaap:EquitySecuritiesMember2024-01-012024-06-300000081955rand:InvestmentManagementAgreementMember2025-04-012025-06-300000081955Carolina Skiff LLC - 6.0825% Class A Common Membership Interest2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:BmpFoodServiceSupplyHoldcoLlcMember2024-01-012024-06-300000081955rand:ScenarioThreeMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:MattisonAvenueHoldingsLlcMember2025-01-012025-06-300000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest One2024-12-310000081955BMP Swanson Holdco, LLC - $1,600,000 Term Note2025-06-300000081955Tilson Technology Management, Inc. - 21,391 Series C Preferred2025-06-300000081955Tilson Technology Management, Inc. - 23,077 Series F Preferred2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:AutotalityMemberus-gaap:DebtSecuritiesMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:InterNationalElectronicAlloysLlcMemberus-gaap:DebtSecuritiesMember2024-01-012024-06-300000081955Mountain Regional Equipment Solutions - 37,991 Common Units2025-01-012025-06-300000081955Mountain Regional Equipment Solutions - $3,000,000 Term Note at 14% PIK2025-06-300000081955rand:PressureProIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955Tilson Technology Management, Inc. - 211,567 A-1 Units of SQF Holdco LLC.2025-06-300000081955ITA Acquisition, LLC - $2,672,808 Fifth Amended and Restated Term Note2024-12-310000081955Microcision LLC - Membership Interest Purchase Warrant for 5%2025-01-012025-06-300000081955rand:AutomotiveMember2024-12-310000081955us-gaap:InvestmentAffiliatedIssuerControlledMember2024-01-012024-06-300000081955Applied Image, Inc. - $1,750,000 Term Note at 10%, due February 1, 20292025-06-300000081955us-gaap:CommonStockMember2023-12-310000081955rand:ItaAcquisitionLlcMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2023-12-310000081955Caitec, Inc. - $1,750,000 Subordinated Secured Promissory Note2024-01-012024-12-310000081955rand:PressureProIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955Carolina Skiff LLC - 6.0825% Class A Common Membership Interest2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:CaitecIncMemberrand:LoanInvestmentsMember2025-01-012025-06-300000081955BMP Swanson Holdco, LLC - Preferred Membership Interest for 9.29%2024-01-012024-12-310000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $4,820,000 at 12%, $2,215,000 at 16%2025-06-300000081955rand:BmpFoodServiceSupplyHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955Inter-National Electronic Alloys LLC d/b/a EFINEA - $3,288,235 Term Note2025-01-012025-06-300000081955FCM Industries Holdco LLC - $420,000 Convertible Note at 10%2024-01-012024-12-310000081955Applied Image, Inc. - $1,750,000 Term Note2024-01-012024-12-310000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest One2025-06-300000081955Filterworks Acquisition USA, LLC d/b/a Autotality - 626.2 shares Class A-1 Units2024-12-310000081955ITA Acquisition, LLC 1,124 Class A Preferred Units and 1,924 Class B Common Units2024-01-012024-12-310000081955OnCore Golf Technology, Inc. - 300,483 Preferred AA2025-01-012025-06-300000081955Caitec, Inc. - 150 Class A Units One2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:HighlandAllAboutPeopleHoldingsIncMember2024-01-012024-06-300000081955rand:DistributionMember2025-06-300000081955Pressure Pro, Inc. - $3,000,000 Term Note2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:TilsonTechnologyManagementIncMemberus-gaap:EquitySecuritiesMember2024-01-012024-06-300000081955Tilson Technology Management, Inc. - 70,176 Series D Preferred2025-06-300000081955GoNoodle, Inc. - 1,500,000 Secured Note2025-06-300000081955rand:InvestmentManagementAgreementMember2025-06-300000081955Mobile RN Holdings LLC - $2,500,000 Term Note at 14%2025-01-012025-06-300000081955us-gaap:TreasuryStockCommonMember2025-06-300000081955Seybert’s Billiards Corporation - $6,099,131 Fourth Amended and Restated Term Note at 12%2025-06-300000081955SciAps, Inc. - 369,698 Series C1 Convertible Preferred2023-12-310000081955Tilson Technology Management, Inc. - 120,000 Series B Preferred2023-12-310000081955rand:HighlandAllAboutPeopleHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310000081955ITA Acquisition, LLC 1,124 Class A Preferred Units and 1,924 Class B Common Units2025-01-012025-06-300000081955Seybert’s Billiards Corporation - $6,099,131 Third Amended and Restated Term Note at 12%2024-12-310000081955rand:MattisonAvenueHoldingsLlcMember2024-01-012024-12-310000081955ITA Acquisition, LLC - $2,672,808 Fifth Amended and Restated Term Note2025-06-300000081955Inter-National Electronic Alloys LLC d/b/a EFINEA - $3,288,235 Term Note2025-06-300000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest2024-12-310000081955Pressure Pro, Inc. - Warrant for 10% Membership Interest2023-12-310000081955Tilson Technology Management, Inc. - 23,077 Series F Preferred2024-01-012024-12-310000081955rand:O2025Q1DividendsMember2025-03-280000081955Inter-National Electronic Alloys LLC - $3,288,235 Term Note at 12%2023-12-310000081955us-gaap:CommonStockMember2025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:MountainRegionalEquipmentSolutionsMemberus-gaap:DebtSecuritiesMember2024-01-012024-06-300000081955rand:PressureProIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955SciAps, Inc. - 147,059 Series D Convertible Preferred2023-12-310000081955rand:NetChangeInUnrealizedAppreciationDepreciationOnInvestmentsMember2024-01-012024-06-300000081955Caitec, Inc. - 150 Class A Units2025-01-012025-06-300000081955ITA Acquisition, LLC - $1,500,000 Term Note at Thereafter 12%2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:AutotalityMember2025-01-012025-06-300000081955rand:O2024Q4DividendsMember2024-12-052024-12-050000081955Filterworks Acquisition USA, LLC - 626.2 shares Class A-1 Units2023-12-310000081955SciAps, Inc. - Warrant to purchase Series D-1 Preferred2024-01-012024-12-310000081955rand:ScenarioOneMember2025-01-012025-06-300000081955us-gaap:InvestmentUnaffiliatedIssuerMember2024-01-012024-06-300000081955SciAps, Inc. - $2,090,000 Second Amended and Restated Secured Subordinated Promissory Note at 12%2023-12-310000081955Seybert’s Billiards Corporation - Warrant for 4% Membership Interest2025-01-012025-06-300000081955rand:ItaAcquisitionLlcMemberus-gaap:InvestmentAffiliatedIssuerControlledMember2024-12-310000081955rand:SciapsIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-12-310000081955SciAps, Inc. - 113,636 Series C Convertible Preferred2023-12-310000081955us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMember2025-01-012025-06-300000081955Seybert’s Billiards Corporation - $6,099,131 Fourth Amended and Restated Term Note, $4,299,1312025-06-300000081955us-gaap:DebtSecuritiesMember2025-06-300000081955rand:ProfessionalAndBusinessServicesMember2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:MountainRegionalEquipmentSolutionsMemberus-gaap:EquitySecuritiesMember2024-01-012024-06-300000081955srt:MaximumMember2024-01-012024-12-310000081955BMP Swanson Holdco, LLC - Preferred Membership Interest for 9.24%2023-12-310000081955Tilson Technology Management, Inc. - 15,385 Series E Preferred2025-01-012025-06-300000081955us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310000081955Inter-National Electronic Alloys LLC d/b/a EFINEA - 75.3 Class B Preferred Units2024-12-310000081955rand:InvestmentManagementAgreementMember2025-01-012025-06-300000081955Tilson Technology Management, Inc. - 211,567 A-1 Units of SQF Holdco LLC.2024-12-310000081955us-gaap:InvestmentUnaffiliatedIssuerMember2025-04-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:HdiAcquisitionLlcMemberus-gaap:DebtSecuritiesMember2025-01-012025-06-300000081955rand:SeybertBilliardsCorporationMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMemberrand:MattisonAvenueHoldingsLlcMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:CaitecIncMemberrand:LoanInvestmentsMember2024-01-012024-06-300000081955Open Exchange, Inc. - 397,899 Common2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2024-01-012024-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:InterNationalElectronicAlloysLlcMember2025-01-012025-06-300000081955BMP Food Service Supply Holdco, LLC - $7,035,000 Second Amended and Restated Term Note, $4,820,000 at 12%, $2,215,000 at 13%2024-12-310000081955Filterworks Acquisition USA, LLC d/b/a Autotality -417.7 shares Class A-0 Units2024-01-012024-12-310000081955Tilson Technology Management, Inc. - 211,567 A-1 Units of SQF Holdco LLC.2024-01-012024-12-310000081955Applied Image, Inc. - Warrant for 1,167 shares2024-01-012024-12-310000081955rand:BmpFoodServiceSupplyHoldcoLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-06-300000081955BMP Swanson Holdco, LLC - $1,600,000 Term Note at 12%2024-12-310000081955rand:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2024-01-012024-06-300000081955Highland All About People Holdings, Inc. - $3,000,000 Term Note at 12%2025-01-012025-06-300000081955rand:HighlandAllAboutPeopleHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Member2025-01-012025-06-300000081955us-gaap:InvestmentAffiliatedIssuerNoncontrolledMemberrand:CarolinaSkiffLlcCarolinaSkiffMember2024-12-310000081955rand:LoanInvestmentsMember2025-06-300000081955us-gaap:InvestmentUnaffiliatedIssuerMemberrand:GonoodleIncMember2025-06-300000081955Highland All About People Holdings, Inc. - 1,000,000 Class A Units2025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:LoanInvestmentsMember2024-01-012024-06-300000081955ITA Acquisition, LLC - $2,297,808 Fourth Amended and Restated Term Note2023-12-310000081955BMP Swanson Holdco, LLC - $1,600,000 Term Note2025-01-012025-06-300000081955BMP Swanson Holdco, LLC - $1,600,000 Term Note2024-12-310000081955rand:EastAssetManagementMember2025-01-012025-06-300000081955Tilson Technology Management, Inc. - 250 Class D-1 Units of SQF Holdco LLC2025-06-300000081955Caitec, Inc. - $1,750,000 Subordinated Secured Promissory Note One2024-12-310000081955SciAps, Inc. - 147,059 Series D Convertible Preferred2024-01-012024-12-310000081955rand:NetRealizedGainLossOnSalesAndDispositionsOfInvestmentsMember2025-01-012025-06-300000081955us-gaap:FairValueInputsLevel3Memberrand:PressureProIncMember2024-01-012024-06-300000081955Lumious - $850,000 Replacement Term Note2024-12-310000081955us-gaap:FairValueInputsLevel3Memberrand:GonoodleIncMemberus-gaap:DebtSecuritiesMember2025-01-012025-06-300000081955us-gaap:InvestmentAffiliatedIssuerControlledMember2025-06-300000081955Filterworks Acquisition USA, LLC - $2,283,702 Amended Term Note2023-12-310000081955rand:BlockerCorporationMember2024-12-310000081955us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMember2025-06-300000081955Mountain Regional Equipment Solutions - 37,991 Common Units2024-01-012024-12-310000081955Open Exchange, Inc. - 397,899 Series C Preferred2024-12-310000081955Seybert’s Billiards Corporation - $4,139,444 Term Note at 12%2023-12-310000081955us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-04-012024-06-300000081955Highland All About People Holdings, Inc. - 1,000,000 Class A Units2023-12-310000081955Filterworks Acquisition USA, LLC d/b/a Autotality - $2,283,702 Amended Term Note2024-01-012024-12-310000081955SciAps, Inc. - 117,371 Series B Convertible Preferred2023-12-310000081955Open Exchange, Inc. - 397,899 Common2025-01-012025-06-300000081955SciAps, Inc. - 274,299 Series A1 Convertible Preferred2023-12-310000081955OnCore Golf Technology, Inc. - 300,483 Preferred AA2025-06-300000081955Tilson Technology Management, Inc. - 21,391 Series C Preferred2023-12-310000081955ITA Acquisition, LLC - $1,500,000 Term Note at 3% (+11% PIK) through December 31, 20242024-01-012024-12-310000081955Pressure Pro, Inc. - Warrant for 10% Membership Interest2024-12-310000081955rand:NetChangeInUnrealizedAppreciationDepreciationOnInvestmentsMember2025-01-012025-06-300000081955srt:MinimumMember2025-06-300000081955rand:InterNationalElectronicAlloysLlcMemberus-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310000081955us-gaap:InvestmentAffiliatedIssuerControlledMember2024-01-012024-12-310000081955us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMemberrand:PressureProIncMember2024-01-012024-06-300000081955us-gaap:TreasuryStockCommonMember2023-12-310000081955us-gaap:SubsequentEventMemberrand:O2025Q3RegularDividendsMember2025-07-282025-07-280000081955us-gaap:FairValueInputsLevel3Memberrand:HdiAcquisitionLlcMember2025-01-012025-06-300000081955OnCore Golf Technology, Inc. - 300,483 Preferred AA2024-01-012024-12-310000081955Open Exchange, Inc. - 397,899 Common2025-06-300000081955us-gaap:RetainedEarningsMember2025-06-300000081955rand:ConsumerProductMember2025-06-300000081955Applied Image, Inc. - $1,750,000 Term Note at 10% through February 1, 20292024-12-310000081955Seybert’s Billiards Corporation - $1,435,435 Term Note at 12%2024-01-012024-12-310000081955us-gaap:RetainedEarningsMember2024-12-310000081955Mountain Regional Equipment Solutions - 37,991 Common Units2025-06-300000081955Autotality (formerly Filterworks Acquisition USA, LLC) - 417.7 shares Class A-0 Units2025-06-300000081955Applied Image, Inc. - $1,750,000 Term Note2025-06-300000081955rand:ManufacturingMember2025-06-300000081955ITA Acquisition, LLC - $1,500,000 Term Note at Thereafter 12%2025-06-300000081955ITA Acquisition, LLC - $1,500,000 Term Note2025-01-012025-06-300000081955ITA Acquisition, LLC - $2,672,808 Fifth Amended and Restated Term Note at 14% PIK through March 31, 20262025-06-300000081955Filterworks Acquisition USA, LLC - $2,283,702 Amended Term Note at 6% (+8% PIK) through March 31, 20252024-12-310000081955us-gaap:FairValueInputsLevel3Memberus-gaap:DebtSecuritiesMemberrand:FcmIndustriesHoldcoLlcMember2025-01-012025-06-30rand:Unitsxbrli:purexbrli:sharesiso4217:USDxbrli:sharesiso4217:USD

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _____ to _______

 

Commission File Number: 814-00235

 

 

Rand Capital Corporation

(Exact Name of Registrant as specified in its Charter)

 

 

New York

16-0961359

(State or Other Jurisdiction of

Incorporation or Organization)

(IRS Employer

Identification No.)

14 Lafayette Square, Suite 1405, Buffalo, NY

14203

(Address of Principal executive offices)

(Zip Code)

 

(716) 853-0802

(Registrant’s telephone number, including area code)

 

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

☐

 

Accelerated filer

☐

Non-accelerated filer

☑

 

Smaller reporting company

☐

 

 

 

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.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No ☑

 

As of August 4, 2025, there were 2,969,814 shares of the registrant’s common stock outstanding.

 

 

 

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

TABLE OF CONTENTS FOR FORM 10-Q

 

PART I. – FINANCIAL INFORMATION

Item 1.

Financial Statements and Supplementary Data

1

 

Consolidated Statements of Financial Position as of June 30, 2025 (Unaudited) and December 31, 2024

1

 

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)

2

 

Consolidated Statements of Changes in Net Assets for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)

3

 

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (Unaudited)

4

 

Consolidated Schedule of Portfolio Investments as of June 30, 2025 (Unaudited)

5

 

Consolidated Schedule of Portfolio Investments as of December 31, 2024

12

 

Notes to the Consolidated Financial Statements (Unaudited)

20

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

36

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

47

Item 4.

Controls and Procedures

48

PART II. – OTHER INFORMATION

Item 1.

Legal Proceedings

49

Item 1A.

Risk Factors

49

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

49

Item 3.

Defaults upon Senior Securities

49

Item 4.

Mine Safety Disclosures

49

Item 5.

Other Information

49

Item 6.

Exhibits

50

 

 

Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements and Supplementary Data

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

 

 

June 30,
2025
(Unaudited)

 

 

December 31,
2024

 

ASSETS

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

Control investments (cost of $6,563,940 and $6,188,940, respectively)

 

$

2,000,000

 

 

$

2,500,000

 

Affiliate investments (cost of $44,800,334 and $42,488,804, respectively)

 

 

42,717,475

 

 

 

51,668,144

 

Non-Control/Non-Affiliate investments (cost of $9,912,772 and $19,442,491, respectively)

 

 

7,646,779

 

 

 

16,649,897

 

Total investments, at fair value (cost of $61,277,046 and $68,120,235, respectively)

 

 

52,364,254

 

 

 

70,818,041

 

Cash

 

 

4,419,813

 

 

 

834,805

 

Interest receivable (net of allowance of $25,337 and $0, respectively)

 

 

250,263

 

 

 

357,530

 

Prepaid income taxes

 

 

344,695

 

 

 

329,365

 

Deferred tax asset, net

 

 

111,438

 

 

 

2,161

 

Other assets

 

 

149,076

 

 

 

115,531

 

Total assets

 

$

57,639,539

 

 

$

72,457,433

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (NET ASSETS)

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Due to investment adviser

 

$

509,500

 

 

$

2,182,846

 

Accounts payable and accrued expenses

 

 

38,600

 

 

 

92,568

 

Line of credit (see Note 6)

 

 

—

 

 

 

600,000

 

Capital gains incentive fees

 

 

—

 

 

 

1,565,000

 

Deferred revenue

 

 

377,485

 

 

 

516,441

 

Dividend payable

 

 

—

 

 

 

2,168,058

 

Total liabilities

 

 

925,585

 

 

 

7,124,913

 

Commitments and contingencies (see Note 5)

 

 

 

 

 

 

Stockholders’ equity (net assets):

 

 

 

 

 

 

Common stock, $0.10 par; shares authorized 100,000,000; shares issued:
   3,037,709 at 6/30/25 and 2,648,916 at 12/31/24; shares outstanding: 2,969,814 at
   6/30/25 and 2,581,021 at 12/31/24 (see Note 1)

 

 

303,771

 

 

 

264,892

 

Capital in excess of par value

 

 

64,051,504

 

 

 

55,419,620

 

Stock dividends distributable: 0 shares at 6/30/25 and 388,793 shares at 12/31/24

 

 

—

 

 

 

8,672,231

 

Treasury stock, at cost: 67,895 shares at 6/30/25 and 12/31/24

 

 

(1,566,605

)

 

 

(1,566,605

)

Total distributable earnings

 

 

(6,074,716

)

 

 

2,542,382

 

 Total stockholders’ equity (net assets) (per share – 6/30/25: $19.10;
   12/31/24: $25.31)

 

 

56,713,954

 

 

 

65,332,520

 

Total liabilities and stockholders’ equity (net assets)

 

$

57,639,539

 

 

$

72,457,433

 

 

See accompanying notes

1

Table of Contents

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three months ended
June 30, 2025

 

 

Three months ended
June 30, 2024

 

 

Six months ended
June 30, 2025

 

 

Six months ended
June 30, 2024

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest from portfolio companies:

 

 

 

 

 

 

 

 

 

 

 

 

Control investments

 

$

12,979

 

 

$

198,885

 

 

$

12,979

 

 

$

386,368

 

Affiliate investments

 

 

1,264,789

 

 

 

1,192,116

 

 

 

2,547,648

 

 

 

2,358,201

 

Non-Control/Non-Affiliate investments

 

 

236,794

 

 

 

604,226

 

 

 

631,101

 

 

 

1,064,306

 

Total interest from portfolio companies

 

 

1,514,562

 

 

 

1,995,227

 

 

 

3,191,728

 

 

 

3,808,875

 

Interest from other investments:

 

 

 

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

 

36,556

 

 

 

144

 

 

 

46,939

 

 

 

2,058

 

Total interest from other investments

 

 

36,556

 

 

 

144

 

 

 

46,939

 

 

 

2,058

 

Dividend and other investment income:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate investments

 

 

—

 

 

 

13,125

 

 

 

13,125

 

 

 

26,250

 

Non-Control/Non-Affiliate investments

 

 

—

 

 

 

60,050

 

 

 

—

 

 

 

198,760

 

Total dividend and other investment income

 

 

—

 

 

 

73,175

 

 

 

13,125

 

 

 

225,010

 

Fee income:

 

 

 

 

 

 

 

 

 

 

 

 

Control investments

 

 

4,516

 

 

 

4,516

 

 

 

9,032

 

 

 

9,032

 

Affiliate investments

 

 

42,891

 

 

 

54,815

 

 

 

174,646

 

 

 

128,535

 

Non-Control/Non-Affiliate investments

 

 

3,772

 

 

 

8,272

 

 

 

174,731

 

 

 

29,858

 

Total fee income

 

 

51,179

 

 

 

67,603

 

 

 

358,409

 

 

 

167,425

 

Total investment income

 

 

1,602,297

 

 

 

2,136,149

 

 

 

3,610,201

 

 

 

4,203,368

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Base management fee (see Note 8)

 

 

217,649

 

 

 

322,672

 

 

 

469,857

 

 

 

625,267

 

Income based incentive fees (see Note 8)

 

 

—

 

 

 

—

 

 

 

119,673

 

 

 

—

 

Capital gains incentive fees (see Note 8)

 

 

(1,490,000

)

 

 

1,641,000

 

 

 

(1,565,000

)

 

 

1,753,300

 

Interest expense

 

 

25,417

 

 

 

393,172

 

 

 

61,903

 

 

 

783,192

 

Professional fees

 

 

142,020

 

 

 

91,460

 

 

 

350,862

 

 

 

323,767

 

Stockholders and office operating

 

 

103,349

 

 

 

82,667

 

 

 

194,112

 

 

 

151,695

 

Directors' fees

 

 

66,550

 

 

 

66,550

 

 

 

130,400

 

 

 

130,400

 

Administrative fees

 

 

50,250

 

 

 

40,000

 

 

 

99,000

 

 

 

78,167

 

Insurance

 

 

9,974

 

 

 

10,380

 

 

 

23,136

 

 

 

23,424

 

Corporate development

 

 

(2,493

)

 

 

4,881

 

 

 

4,501

 

 

 

10,426

 

Bad debt expense

 

 

13,125

 

 

 

—

 

 

 

38,462

 

 

 

—

 

Total (benefits) expenses

 

 

(864,159

)

 

 

2,652,782

 

 

 

(73,094

)

 

 

3,879,638

 

Net investment income (loss) before income taxes:

 

 

2,466,456

 

 

 

(516,633

)

 

 

3,683,295

 

 

 

323,730

 

Income tax (benefit) expense

 

 

(11,778

)

 

 

562

 

 

 

(13,054

)

 

 

1,340

 

Net investment income (loss)

 

 

2,478,234

 

 

 

(517,195

)

 

 

3,696,349

 

 

 

322,390

 

Net realized gain (loss) on sales and dispositions of investments:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate investments

 

 

—

 

 

 

(831,891

)

 

 

925,357

 

 

 

(831,891

)

Non-Control/Non-Affiliate investments

 

 

—

 

 

 

1,259,999

 

 

 

(25

)

 

 

4,710,091

 

Net realized gain (loss) on sales and dispositions of investments

 

 

—

 

 

 

428,108

 

 

 

925,332

 

 

 

3,878,200

 

Net change in unrealized appreciation/depreciation
  on investments:

 

 

 

 

 

 

 

 

 

 

 

 

Control investments

 

 

—

 

 

 

—

 

 

 

(875,000

)

 

 

—

 

Affiliate investments

 

 

(10,122,270

)

 

 

8,849,945

 

 

 

(10,545,654

)

 

 

8,749,945

 

Non-Control/Non-Affiliate investments

 

 

(189,944

)

 

 

(1,070,919

)

 

 

(189,944

)

 

 

(3,861,215

)

Change in unrealized appreciation/depreciation before income taxes

 

 

(10,312,214

)

 

 

7,779,026

 

 

 

(11,610,598

)

 

 

4,888,730

 

Deferred income tax benefit

 

 

(97,826

)

 

 

(47,834

)

 

 

(94,210

)

 

 

(47,834

)

Net change in unrealized appreciation/depreciation on investments

 

 

(10,214,388

)

 

 

7,826,860

 

 

 

(11,516,388

)

 

 

4,936,564

 

Net realized and unrealized (loss) gain on investments

 

 

(10,214,388

)

 

 

8,254,968

 

 

 

(10,591,056

)

 

 

8,814,764

 

Net (decrease) increase in net assets from operations

 

$

(7,736,154

)

 

$

7,737,773

 

 

$

(6,894,707

)

 

$

9,137,154

 

Weighted average shares outstanding

 

 

2,969,814

 

 

 

2,581,021

 

 

 

2,920,135

 

 

 

2,581,021

 

Basic and diluted net (decrease) increase in net assets from operations per share

 

$

(2.60

)

 

$

3.00

 

 

$

(2.36

)

 

$

3.54

 

 

See accompanying notes

2

Table of Contents

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

 

 

Three months ended
June 30, 2025

 

 

Three months ended
June 30, 2024

 

 

Six months ended
June 30, 2025

 

 

Six months ended
June 30, 2024

 

Net assets at beginning of period

 

$

65,311,253

 

 

$

61,569,339

 

 

$

65,332,520

 

 

$

60,815,213

 

Net investment income (loss)

 

 

2,478,234

 

 

 

(517,195

)

 

 

3,696,349

 

 

 

322,390

 

Net realized gain on sales and dispositions of investments

 

 

—

 

 

 

428,108

 

 

 

925,332

 

 

 

3,878,200

 

Net change in unrealized appreciation/depreciation on investments

 

 

(10,214,388

)

 

 

7,826,860

 

 

 

(11,516,388

)

 

 

4,936,564

 

Net (decrease) increase in net assets from operations

 

 

(7,736,154

)

 

 

7,737,773

 

 

 

(6,894,707

)

 

 

9,137,154

 

Declaration of dividend

 

 

(861,145

)

 

 

(748,496

)

 

 

(1,723,859

)

 

 

(1,393,751

)

Net assets at end of period

 

$

56,713,954

 

 

$

68,558,616

 

 

$

56,713,954

 

 

$

68,558,616

 

 

See accompanying notes

3

Table of Contents

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six months ended
June 30, 2025

 

 

Six months ended
June 30, 2024

 

Cash flows from operating activities:

 

 

 

 

 

 

Net (decrease) increase in net assets from operations

 

$

(6,894,707

)

 

$

9,137,154

 

Adjustments to reconcile net increase in net assets to net cash
provided by (used in) operating activities:

 

 

 

 

 

 

Investments in portfolio companies

 

 

(409,755

)

 

 

(10,945,497

)

Proceeds from sale of portfolio investments

 

 

955,357

 

 

 

7,219,550

 

Proceeds from loan repayments

 

 

8,490,868

 

 

 

3,356,760

 

Net realized gain on sales and dispositions of portfolio investments

 

 

(925,332

)

 

 

(3,878,200

)

Change in unrealized appreciation/depreciation on investments

 

 

11,610,598

 

 

 

(4,888,730

)

Deferred income tax benefit

 

 

(109,277

)

 

 

(134,874

)

Amortization

 

 

12,500

 

 

 

12,500

 

Original issue discount amortization

 

 

(29,004

)

 

 

(14,004

)

Non-cash conversion of debenture interest

 

 

(1,223,945

)

 

 

(795,134

)

Non-cash conversion of loan modification fee

 

 

(15,000

)

 

 

—

 

Change in interest receivable allowance

 

 

25,337

 

 

 

—

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Decrease (increase) in interest receivable

 

 

81,930

 

 

 

(272,017

)

Increase in other assets

 

 

(46,045

)

 

 

(407,542

)

Increase in prepaid income taxes

 

 

(15,330

)

 

 

(21,994

)

Decrease in accounts payable and accrued expenses

 

 

(53,968

)

 

 

(37,158

)

Decrease in due to investment adviser

 

 

(1,673,346

)

 

 

(656,625

)

(Decrease) increase in capital gains incentive fees payable

 

 

(1,565,000

)

 

 

1,753,300

 

(Decrease) increase in deferred revenue

 

 

(138,956

)

 

 

14,167

 

Total adjustments

 

 

14,971,632

 

 

 

(9,695,498

)

Net cash provided by (used in) operating activities

 

 

8,076,925

 

 

 

(558,344

)

Cash flows from financing activities:

 

 

 

 

 

 

Net (repayment of) proceeds from line of credit

 

 

(600,000

)

 

 

950,000

 

Payment of cash dividend

 

 

(3,891,917

)

 

 

(1,393,751

)

Net cash used in financing activities

 

 

(4,491,917

)

 

 

(443,751

)

Net increase (decrease) in cash

 

 

3,585,008

 

 

 

(1,002,095

)

Cash:

 

 

 

 

 

 

Beginning of period

 

 

834,805

 

 

 

3,295,321

 

End of period

 

$

4,419,813

 

 

$

2,293,226

 

 

See accompanying notes

4

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2025

(Unaudited)

 

Company, Geographic Location, Business Description, (Industry) and Website

 

(a)
Type of Investment

 

(b)
Date Acquired

 

(c)
Equity

 

Cost

 

 

(d)(f)
Fair Value

 

 

Percent of Net Assets

Non-Control/Non-Affiliate Investments – 13.5% of net assets: (g) (j)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Caitec, Inc. (e)(l)(p)
Halethorpe, MD. Pet product manufacturer and distributor. (Consumer Goods)
www.caitec.com

 

$1,750,000 Subordinated Secured Promissory Note modified to 14% PIK through June 30, 2025, thereafter 12% (+2% PIK), due June 1, 2026.

 

11/6/20

 

4%

 

 

2,399,639

 

 

 

2,399,639

 

 

8.5%

 

 

36,261 Series A Preferred.

 

12/28/23

 

 

 

 

36,261

 

 

 

—

 

 

 

 

 

150 Class A Units.

 

11/6/20

 

 

 

 

150,000

 

 

 

—

 

 

 

 

 

$1,750,000 Subordinated Secured Promissory Note modified to 14% PIK through June 30, 2025, thereafter 12% (+2% PIK), due June 1, 2026.

 

11/6/20

 

 

 

 

2,399,639

 

 

 

2,399,639

 

 

 

 

 

150 Class A Units.

 

11/6/20

 

 

 

 

150,000

 

 

 

—

 

 

 

 

 

36,261 Series A Preferred.

 

12/28/23

 

 

 

 

36,261

 

 

 

—

 

 

 

 

 

Total Caitec

 

 

 

 

 

 

5,171,800

 

 

 

4,799,278

 

 

 

GoNoodle, Inc. (l)(p)
Nashville, TN. Student engagement education

 

$1,500,000 Secured Note at 12% (1% PIK) due September 30, 2025.

 

11/1/19

 

<1%

 

 

1,447,463

 

 

 

1,447,463

 

 

2.6%

software providing core aligned physical

 

Warrant for 21,948 Series D Preferred.

 

11/1/19

 

 

 

 

38

 

 

 

38

 

 

 

activity breaks. (Software)

 

Total GoNoodle

 

 

 

 

 

 

1,447,501

 

 

 

1,447,501

 

 

 

www.gonoodle.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lumious (Tech 2000, Inc.) (p)
Herndon, VA. Develops and delivers IT

 

$850,000 Replacement Term Note at 14% due December 1, 2025.

 

11/16/18

 

0%

 

 

789,944

 

 

 

600,000

 

 

1.1%

training. (Software)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

www.t2000inc.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OnCore Golf Technology, Inc. (e)(p)
Buffalo, NY. Patented and proprietary golf balls utilizing technology and innovation. (Consumer Product)
www.oncoregolf.com

 

300,483 Preferred AA.

 

11/30/18

 

3%

 

 

752,712

 

 

 

100,000

 

 

0.2%

Open Exchange, Inc. (e)(p)

 

397,899 Series C Preferred.

 

11/13/13

 

2%

 

 

1,193,697

 

 

 

700,000

 

 

1.2%

Lincoln, MA. Online presentation and

 

397,899 Common.

 

10/22/19

 

 

 

 

208,243

 

 

 

—

 

 

 

training software. (Software)

 

Total Open Exchange

 

 

 

 

 

 

1,401,940

 

 

 

700,000

 

 

 

www.openexc.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PostProcess Technologies, Inc. (e)(p)
Buffalo, NY. Provides innovative solutions for the post-processing of additive manufactured 3D parts. (Manufacturing)
www.postprocess.com

 

137,054 Series A Preferred.

 

11/1/19

 

<1%

 

 

348,875

 

 

 

—

 

 

0.0%

Subtotal Non-Control/Non-Affiliate Investments

 

 

 

 

 

 

 

$

9,912,772

 

 

$

7,646,779

 

 

 

Affiliate Investments – 75.3% of net assets (g) (k)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applied Image, Inc. (p)
Rochester, NY. Global supplier of precision

 

$1,750,000 Term Note at 10%, due February 1, 2029.

 

12/31/21

 

12%

 

 

1,750,000

 

 

 

1,750,000

 

 

3.1%

imaged optical components and calibration

 

Warrant for 1,167 shares.

 

12/31/21

 

 

 

 

—

 

 

 

—

 

 

 

standards for a wide range of industries and

 

Total Applied Image

 

 

 

 

 

 

1,750,000

 

 

 

1,750,000

 

 

 

applications. (Manufacturing)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

www.appliedimage.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Autotality (formerly Filterworks Acquisition USA, LLC) (l)(m)(p)

 

$2,283,702 Amended Term Note at 12% (+2% PIK) due March 31, 2026.

 

11/18/19

 

8%

 

 

3,002,323

 

 

 

3,002,323

 

 

5.3%

Deerfield Beach, FL. Provides spray booth

 

626.2 shares Class A-1 Units.

 

6/3/22

 

 

 

 

626,243

 

 

 

—

 

 

 

equipment, frame repair machines and paint

 

417.7 shares Class A-0 Units.

 

9/30/22

 

 

 

 

139,232

 

 

 

—

 

 

 

booth filter services for collision shops.

 

Total Autotality

 

 

 

 

 

 

3,767,798

 

 

 

3,002,323

 

 

 

(Automotive)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

www.autotality.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes

 

5

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2025 (Continued)

(Unaudited)

 

Company, Geographic Location, Business Description, (Industry) and Website

 

(a)
Type of Investment

 

(b)
Date Acquired

 

(c)
Equity

 

Cost

 

 

(d)(f)
Fair Value

 

 

Percent of Net Assets

BMP Food Service Supply Holdco, LLC (e)(l)(m)(p)
Salt Lake City, UT. Provides design, distribution, and installation services for
commercial kitchen renovations and new
builds. (Professional and Business Services)
www.foodservicesupply.com

 

$7,035,000 Second Amended and Restated Term Note: $4,820,000 in principal amount at 12% PIK through December 31, 2025, thereafter 12%, and $2,215,000 in principal amount at 16% PIK through December 31, 2025, thereafter 16%, due November 22, 2027.

 

11/22/22

 

15%

 

 

6,973,057

 

 

 

6,973,057

 

 

12.3%

 

 

15.4% Preferred Interest.

 

11/22/22

 

 

 

 

497,619

 

 

 

—

 

 

 

 

 

Total BMP Food Service Supply

 

 

 

 

 

 

7,470,676

 

 

 

6,973,057

 

 

 

BMP Swanson Holdco, LLC (m)(p)
Plano, TX. Designs, installs, and maintains

 

$1,600,000 Term Note at 12% due May 31, 2028.

 

3/4/21

 

9%

 

 

1,700,115

 

 

 

1,700,115

 

 

4.3%

a variety of fire protection systems.
(Professional and Business Services)

 

Preferred Membership Interest for 9.24%.

 

3/4/21

 

 

 

 

233,333

 

 

 

750,000

 

 

 

www.swansonfire.com

 

Total BMP Swanson

 

 

 

 

 

 

1,933,448

 

 

 

2,450,115

 

 

 

Carolina Skiff LLC (e)(m)(p)
Waycross, GA. Manufacturer of ocean

 

6.0825% Class A Common Membership Interest.

 

1/30/04

 

7%

 

 

15,000

 

 

 

765,245

 

 

1.4%

fishing and pleasure boats. (Manufacturing)

 

6.62% Premium Preferred Interest.

 

4/29/25

 

 

 

 

34,755

 

 

 

34,755

 

 

 

www.carolinaskiff.com

 

Total Carolina Skiff

 

 

 

 

 

 

49,755

 

 

 

800,000

 

 

 

FCM Industries Holdco LLC (l)(p)
Jacksonville, FL. Commercial mulch

 

$3,380,000 Term Note at 13% due July 31, 2028.

 

7/31/23

 

12%

 

 

3,380,000

 

 

 

3,380,000

 

 

6.9%

installation company that serves a range
of end markets.

 

$420,000 Convertible Note at 10% PIK, due July 31, 2033.

 

7/31/23

 

 

 

 

509,730

 

 

 

509,730

 

 

 

(Professional and Business Services)

 

Total FCM Industries

 

 

 

 

 

 

3,889,730

 

 

 

3,889,730

 

 

 

www.firstcoastmulch.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Highland All About People Holdings, Inc. (l)(p)

 

$3,000,000 Term Note at 12% (+4% PIK) due August 7, 2028.

 

8/7/23

 

12%

 

 

3,239,267

 

 

 

3,239,267

 

 

6.8%

Phoenix, AZ. Full-service staffing and

 

1,000,000 Class A Units.

 

8/7/23

 

 

 

 

1,000,000

 

 

 

600,000

 

 

 

executive search firm with a focus on the

 

Total Highland All About People

 

 

 

 

 

 

4,239,267

 

 

 

3,839,267

 

 

 

healthcare industry.
(Professional and Business Services)
www.allaboutpeople.net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inter-National Electronic Alloys LLC
d/b/a EFINEA (m)(p)

 

$3,288,235 Term Note at 12% due April 4, 2028.

 

4/4/23

 

6%

 

 

3,372,069

 

 

 

3,372,069

 

 

8.6%

Oakland, NJ. Stocking distributor of

 

75.3 Class B Preferred Units.

 

4/4/23

 

 

 

 

1,011,765

 

 

 

1,500,000

 

 

 

controlled expansion alloys, electronic grade

 

Total EFINEA

 

 

 

 

 

 

4,383,834

 

 

 

4,872,069

 

 

 

nickels, refractory grade metals and alloys,
and soft magnetic alloys. (Distribution)
www.nealloys.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobile RN Holdings LLC d/b/a Mobile IV Nurses (l)(m)(p)

 

$2,500,000 Term Note at 14% (+1% PIK) due October 2, 2029.

 

10/2/24

 

6%

 

 

2,518,936

 

 

 

2,518,936

 

 

5.3%

Phoenix, AZ. IV hydration therapy service

 

6,375 Class A Common Units.

 

10/2/24

 

 

 

 

375,000

 

 

 

500,000

 

 

 

provider. (Health and Wellness)

 

Total Mobile IV Nurses

 

 

 

 

 

 

2,893,936

 

 

 

3,018,936

 

 

 

www.mobileivnurses.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mountain Regional Equipment Solutions (e)(l)(m)(p)
Salt Lake City, UT. Provider of maintenance,

 

$3,000,000 Term Note at 14% PIK through June 30, 2025, thereafter 14%, due January 16, 2029.

 

1/16/24

 

7%

 

 

3,191,352

 

 

 

2,000,000

 

 

3.5%

safety, fluid transfer, and custom fabrication

 

37,991 Common Units.

 

1/16/24

 

 

 

 

204,545

 

 

 

—

 

 

 

products. (Distribution)

 

Warrant for 4% Membership Interest.

 

1/16/24

 

 

 

 

60,000

 

 

 

—

 

 

 

www.mountainregionaleq.com

 

Total Mountain Regional Equipment Solutions

 

 

 

 

 

 

3,455,897

 

 

 

2,000,000

 

 

 

 

See accompanying notes

6

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2025 (Continued)

(Unaudited)

 

Company, Geographic Location, Business Description, (Industry) and Website

 

(a)
Type of Investment

 

(b)
Date Acquired

 

(c)
Equity

 

Cost

 

 

(d)(f)
Fair Value

 

 

Percent of Net Assets

Seybert’s Billiards Corporation
d/b/a The Rack Group (h)(l)(p)
Coldwater, MI. Billiard supplies.
(Consumer Product)
www.seyberts.com

 

$6,099,131 Fourth Amended and Restated Term Note: $4,299,131 in principal amount at 12% (+2% PIK) through January 19, 2026, thereafter 14%, and $1,800,000 in principal amount at 14%, due January 19, 2027.

 

11/22/21

 

8%

 

 

6,146,184

 

 

 

6,146,184

 

 

14.3%

 

 

Warrant for 4% Membership Interest.

 

1/19/21

 

 

 

 

25,000

 

 

 

50,000

 

 

 

 

 

$1,435,435 Term Note at 12% (+2% PIK) through January 19, 2026, thereafter 14%, due January 19, 2027.

 

1/19/21

 

 

 

 

1,475,794

 

 

 

1,475,794

 

 

 

 

 

Warrant for 4% Membership Interest.

 

1/19/21

 

 

 

 

25,000

 

 

 

50,000

 

 

 

 

 

5.82 Common shares.

 

10/24/22

 

 

 

 

194,000

 

 

 

400,000

 

 

 

 

 

Total Seybert’s

 

 

 

 

 

 

7,865,978

 

 

 

8,121,978

 

 

 

Tilson Technology Management, Inc. (e)(p)

 

120,000 Series B Preferred.

 

1/20/15

 

8%

 

 

600,000

 

 

 

—

 

 

3.5%

Portland, ME. Provides network deployment

 

21,391 Series C Preferred.

 

9/28/16

 

 

 

 

200,000

 

 

 

—

 

 

 

construction and information system services

 

70,176 Series D Preferred.

 

9/29/17

 

 

 

 

800,000

 

 

 

—

 

 

 

management for cellular, fiber optic and

 

15,385 Series E Preferred.

 

3/15/19

 

 

 

 

500,012

 

 

 

—

 

 

 

wireless systems providers. Its affiliated

 

23,077 Series F Preferred.

 

6/15/20

 

 

 

 

750,003

 

 

 

—

 

 

 

entity, SQF, LLC is a CLEC supporting

 

211,567 A-1 Units of SQF Holdco LLC.

 

3/15/19

 

 

 

 

—

 

 

 

1,000,000

 

 

 

small cell 5G deployment.
(Professional and Business Services)

 

250 Class D-1 Units of SQF Holdco LLC.

 

2/16/23

 

 

 

 

250,000

 

 

 

1,000,000

 

 

 

www.tilsontech.com

 

Total Tilson

 

 

 

 

 

 

3,100,015

 

 

 

2,000,000

 

 

 

Subtotal Affiliate Investments

 

 

 

 

 

 

 

$

44,800,334

 

 

$

42,717,475

 

 

 

Control Investments - 3.5% of net assets (g) (o)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ITA Acquisition, LLC (l)(m)(p)
Ormond Beach, FL. Blind and shade
manufacturing. (Manufacturing)
www.itawindowfashions.com

 

$2,672,808 Fifth Amended and Restated Term Note at 14% PIK through March 31, 2026, thereafter 12% (+2% PIK), due June 21, 2026.

 

6/22/21

 

37%

 

 

3,619,220

 

 

 

1,415,814

 

 

3.5%

 

 

$1,500,000 Term Note at 14% PIK through March 31, 2026, thereafter 12% (+2% PIK), due June 21, 2026.

 

6/22/21

 

 

 

 

1,820,910

 

 

 

584,186

 

 

 

 

 

1,124 Class A Preferred Units and 1,924 Class B Common Units.

 

6/22/21

 

 

 

 

1,123,810

 

 

 

—

 

 

 

 

 

Total ITA

 

 

 

 

 

 

6,563,940

 

 

 

2,000,000

 

 

 

Subtotal Control Investments

 

 

 

 

 

 

 

$

6,563,940

 

 

$

2,000,000

 

 

 

TOTAL INVESTMENTS – 92.3%

 

 

 

 

 

 

 

$

61,277,046

 

 

$

52,364,254

 

 

 

OTHER ASSETS IN EXCESS OF LIABILITIES - 7.7%

 

 

 

 

 

 

 

 

 

 

 

4,349,700

 

 

 

NET ASSETS – 100%

 

 

 

 

 

 

 

 

 

 

$

56,713,954

 

 

 

 

See accompanying notes

 

7

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2025 (Continued)

(Unaudited)

 

Notes to the Consolidated Schedule of Portfolio Investments

(a)
At June 30, 2025, restricted securities represented 100% of the fair value of the investment portfolio. Restricted securities are subject to one or more restrictions on resale and are not freely marketable. Type of investment for equity position is in the form of shares unless otherwise noted as units or interests, i.e., preferred shares, common shares.
(b)
The Date Acquired column indicates the date on which the Corporation first acquired an investment.
(c)
Each equity percentage estimates the Corporation’s ownership interest in the applicable portfolio investment. The estimated ownership is calculated based on the percent of outstanding voting securities held by the Corporation or the potential percentage of voting securities held by the Corporation upon exercise of warrants or conversion of debentures, or other available data. If applicable, the symbol “<1%” indicates that the Corporation holds an equity interest of less than one percent.
(d)
The Corporation’s investments are carried at fair value in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820 “Fair Value Measurements and Disclosures,” which defines fair value and establishes guidelines for measuring fair value. At June 30, 2025, ASC 820 designates 100% of the Corporation’s investments as “Level 3” assets. Under the valuation policy of the Corporation, unrestricted publicly traded securities are valued at the closing price for these securities on the last trading day of the reporting period. Restricted securities are subject to restrictions on resale and are valued at fair value as determined in good faith by our external investment advisor Rand Capital Management, LLC (“RCM”) and approved by the Board of Directors. Fair value is considered to be the amount that the Corporation may reasonably expect to receive for portfolio securities when sold on the valuation date. Valuations as of any particular date, however, are not necessarily indicative of amounts which may ultimately be realized as a result of future sales or other dispositions of securities and these favorable or unfavorable differences could be material. Among the factors considered in determining the fair value of restricted securities are the financial condition and operating results, projected operations, and other analytical data relating to the investment. Also considered are the market prices for unrestricted securities of the same class (if applicable) and other matters which may have an impact on the value of the portfolio company (see Note 3. “Investments” to the Consolidated Financial Statements).
(e)
These investments are non-income producing. All other investments are income producing. Non-income producing investments have not generated cash payments of interest or dividends including LLC tax-related distributions within the last twelve months or are not expected to do so going forward. If a debt or a preferred equity investment fails to make its most recent payment, then the investment will also be classified as non-income producing.
(f)
As of June 30, 2025, the total cost of investment securities was approximately $61.3 million. Net unrealized depreciation was approximately ($8.9) million, which was comprised of $3.9 million of unrealized appreciation of investment securities and ($12.8) million of unrealized depreciation of investment securities. At June 30, 2025, the aggregate gross unrealized gain for federal income tax purposes was $2.0 million and the aggregate gross unrealized loss for federal income tax purposes was ($10.9) million. The net unrealized loss for federal income tax purposes was ($8.9) million based on a tax cost of $61.7 million.
(g)
All of the Corporation’s portfolio assets are pledged as collateral for purposes of securing the Corporation’s senior secured revolving credit facility pursuant to a general security agreement, dated June 27, 2022, between the Corporation, the subsidiaries listed therein, and the Lender (as defined herein).
(h)
Reduction in cost and fair value from previously reported balances reflects current principal repayment.
(i)
Represents interest due (amounts over $100,000) from investments included as interest receivable on the Corporation’s Consolidated Statements of Financial Position. None at June 30, 2025.
(j)
Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(k)
Affiliate Investments are defined by the Investment Company Act of 1940, as amended (“1940 Act”), as those Non-Control investments in companies in which between 5% and 25% of the voting securities of such company are owned by the Corporation.
(l)
Payment in kind (PIK) represents earned interest that is added to the cost basis of the investment and due at maturity. The amount of PIK earned is included in the interest rate detailed in the “Type of Investment” column, unless it has been noted with a (+), in which case the PIK is in addition to the face amount of interest due on the security.
(m)
Equity holdings are held in a wholly owned (100%) “blocker corporation” subsidiary of Rand Capital Corporation for federal income tax and Regulated Investment Company (RIC) compliance purposes.
(n)
Indicates assets that the Corporation believes do not represent “qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of the Corporation’s total assets at the time of acquisition of any additional non-qualifying assets. The Corporation had no investments in non-qualifying assets as of June 30, 2025.
(o)
Control Investments are defined by the 1940 Act as investments in companies in which more than 25% of the voting securities of such companies are owned by the Corporation or where the Corporation maintains greater than 50% representation on its board of directors or other similar governing body.
(p)
Investments classified as Level 3 for purposes of the fair value determination by RCM and approved by the Board of Directors.

8

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2025 (Continued)

(Unaudited)

 

Investments in and Advances to Affiliates

 

Company

 

Type of Investment

 

January 1, 2025, Fair Value

 

 

Net Change in Unrealized Appreciation (Depreciation)

 

 

Gross Additions
(1)

 

 

Gross Reductions
(2)

 

 

June 30, 2025, Fair Value

 

 

Net Realized Gains (Losses)

 

 

Interest/
Dividend/
Fee Income (3)

 

Control Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ITA Acquisition, LLC

 

$2,672,808 Fifth Amended and Restated Term Note at 14% PIK through March 31, 2026, thereafter 12% (+2% PIK), due June 21, 2026.

 

$

1,642,968

 

 

$

(602,154

)

 

$

375,000

 

 

$

—

 

 

$

1,415,814

 

 

$

—

 

 

$

18,011

 

 

 

$1,500,000 Term Note at 14% PIK through March 31, 2026, thereafter 12% (+2% PIK), due June 21, 2026.

 

 

857,032

 

 

 

(272,846

)

 

 

—

 

 

 

—

 

 

 

584,186

 

 

 

—

 

 

 

4,000

 

 

 

1,124 Class A Preferred Units and 1,924 Class B Common Units.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total ITA

 

 

2,500,000

 

 

 

(875,000

)

 

 

375,000

 

 

 

—

 

 

 

2,000,000

 

 

 

—

 

 

 

22,011

 

 

Total Control Investments

 

$

2,500,000

 

 

$

(875,000

)

 

$

375,000

 

 

$

—

 

 

$

2,000,000

 

 

$

—

 

 

$

22,011

 

Affiliate Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applied Image, Inc.

 

$1,750,000 Term Note at 10%, due February 1, 2029.

 

$

1,750,000

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,750,000

 

 

$

—

 

 

$

91,038

 

 

Warrant for 1,167 shares.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Total Applied Image

 

 

1,750,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,750,000

 

 

 

—

 

 

 

91,038

 

Autotality (formerly Filterworks

 

$2,283,702 Amended Term Note at 12% (+2% PIK) due March 31, 2026.

 

 

2,928,648

 

 

 

—

 

 

 

73,675

 

 

 

—

 

 

 

3,002,323

 

 

 

—

 

 

 

208,217

 

Acquisition USA,

 

626.2 shares Class A-1 Units.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

LLC)

 

417.7 shares Class A-0 Units.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total Autotality

 

 

2,928,648

 

 

 

—

 

 

 

73,675

 

 

 

—

 

 

 

3,002,323

 

 

 

—

 

 

 

208,217

 

BMP Food Service Supply Holdco, LLC

 

$7,035,000 Second Amended and Restated Term Note: $4,820,000 in principal amount at 12% PIK through December 31, 2025, thereafter 12%, and $2,215,000 in principal amount at 16% PIK through December 31, 2025, thereafter 16%, due November 22, 2027.

 

 

6,538,026

 

 

 

—

 

 

 

435,031

 

 

 

—

 

 

 

6,973,057

 

 

 

—

 

 

 

449,682

 

 

 

15.4% Preferred Interest.

 

 

497,619

 

 

 

(497,619

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total FSS

 

 

7,035,645

 

 

 

(497,619

)

 

 

435,031

 

 

 

—

 

 

 

6,973,057

 

 

 

—

 

 

 

449,682

 

BMP Swanson Holdco, LLC

 

$1,600,000 Term Note at 12% due May 31, 2028.

 

 

1,700,115

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,700,115

 

 

 

—

 

 

 

105,906

 

 

Preferred Membership Interest for 9.24%.

 

 

750,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

750,000

 

 

 

—

 

 

 

—

 

 

Total BMP Swanson

 

 

2,450,115

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,450,115

 

 

 

—

 

 

 

105,906

 

Carolina Skiff LLC

 

6.0825% Class A Common Membership Interest.

 

 

1,208,000

 

 

 

(442,755

)

 

 

—

 

 

 

—

 

 

 

765,245

 

 

 

—

 

 

 

—

 

 

 

6.62% Premium Preferred Interest.

 

 

—

 

 

 

—

 

 

 

34,755

 

 

 

—

 

 

 

34,755

 

 

 

—

 

 

 

—

 

 

 

Total Carolina Skiff

 

 

1,208,000

 

 

 

(442,755

)

 

 

34,755

 

 

 

—

 

 

 

800,000

 

 

 

—

 

 

 

—

 

FCM Industries Holdco LLC

 

$3,380,000 Term Note at 13% due July 31, 2028.

 

 

3,380,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,380,000

 

 

 

—

 

 

 

228,520

 

 

 

$420,000 Convertible Note at 10% PIK, due July 31, 2033.

 

 

—

 

 

 

484,837

 

 

 

24,893

 

 

 

—

 

 

 

509,730

 

 

 

—

 

 

 

24,893

 

 

 

Total FCM

 

 

3,380,000

 

 

 

484,837

 

 

 

24,893

 

 

 

—

 

 

 

3,889,730

 

 

 

—

 

 

 

253,413

 

Highland All About People Holdings, Inc.

 

$3,000,000 Term Note at 12% (+4% PIK) due August 7, 2028.

 

 

3,175,091

 

 

 

—

 

 

 

64,176

 

 

 

—

 

 

 

3,239,267

 

 

 

—

 

 

 

262,703

 

 

 

1,000,000 Class A Units.

 

 

600,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

600,000

 

 

 

—

 

 

 

—

 

 

 

Total All About People

 

 

3,775,091

 

 

 

—

 

 

 

64,176

 

 

 

—

 

 

 

3,839,267

 

 

 

—

 

 

 

262,703

 

Inter-National Electronic Alloys

 

$3,288,235 Term Note at 12% due April 4, 2028.

 

 

3,372,069

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,372,069

 

 

 

—

 

 

 

210,024

 

LLC

 

75.3 Class B Preferred Units.

 

 

1,011,765

 

 

 

488,235

 

 

 

—

 

 

 

—

 

 

 

1,500,000

 

 

 

—

 

 

 

—

 

 

 

Total EFINEA

 

 

4,383,834

 

 

 

488,235

 

 

 

—

 

 

 

—

 

 

 

4,872,069

 

 

 

—

 

 

 

210,024

 

Microcision LLC

 

Membership Interest Purchase Warrant for 5%

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

55,357

 

 

 

—

 

 

See accompanying notes

9

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2025 (Continued)

(Unaudited)

 

Company

 

Type of Investment

 

January 1, 2025, Fair Value

 

 

Net Change in Unrealized Appreciation (Depreciation)

 

 

Gross Additions
(1)

 

 

Gross Reductions
(2)

 

 

June 30, 2025, Fair Value

 

 

Net Realized Gains (Losses)

 

 

Interest/
Dividend/
Fee Income (3)

 

Mobile RN Holdings LLC

 

$2,500,000 Term Note at 14% (+1% PIK) due October 2, 2029.

 

 

2,506,319

 

 

 

—

 

 

 

12,617

 

 

 

—

 

 

 

2,518,936

 

 

 

—

 

 

 

195,983

 

 

 

6,375 Class A Common Units.

 

 

375,000

 

 

 

125,000

 

 

 

—

 

 

 

—

 

 

 

500,000

 

 

 

—

 

 

 

—

 

 

 

Total Mobile IV Nurses

 

 

2,881,319

 

 

 

125,000

 

 

 

12,617

 

 

 

—

 

 

 

3,018,936

 

 

 

—

 

 

 

195,983

 

Mountain Regional Equipment Solutions

 

$3,000,000 Term Note at 14% PIK through June 30, 2025, thereafter 14%, due January 16, 2029.

 

 

—

 

 

 

(739,352

)

 

 

2,739,352

 

 

 

—

 

 

 

2,000,000

 

 

 

—

 

 

 

245,352

 

 

 

37,991 Common Units.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant for 4% Membership Interest.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total MRES

 

 

—

 

 

 

(739,352

)

 

 

2,739,352

 

 

 

—

 

 

 

2,000,000

 

 

 

—

 

 

 

245,352

 

Pressure Pro, Inc.

 

$3,000,000 Term Note at 12% (+3% PIK) due January, 19, 2028.

 

 

1,702,705

 

 

 

—

 

 

 

22,445

 

 

 

(1,725,150

)

 

 

—

 

 

 

—

 

 

 

121,261

 

 

 

Warrant for 10% Membership Interest.

 

 

750,000

 

 

 

(720,000

)

 

 

—

 

 

 

(30,000

)

 

 

—

 

 

 

870,000

 

 

 

—

 

 

 

Total Pressure Pro

 

 

2,452,705

 

 

 

(720,000

)

 

 

22,445

 

 

 

(1,755,150

)

 

 

—

 

 

 

870,000

 

 

 

121,261

 

Seybert’s Billiards Corporation

 

$6,099,131 Fourth Amended and Restated Term Note: $4,299,131 in principal amount at 12% (+2% PIK) through January 19, 2026, thereafter 14%, and $1,800,000 in principal amount at 14%, due January 19, 2027.

 

 

6,167,723

 

 

 

—

 

 

 

46,482

 

 

 

(68,021

)

 

 

6,146,184

 

 

 

—

 

 

 

466,020

 

 

 

Warrant for 4% Membership Interest.

 

 

25,000

 

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

50,000

 

 

 

—

 

 

 

—

 

 

 

$1,435,435 Term Note at 12% (+2% PIK) through January 19, 2026, thereafter 14%, due January 19, 2027.

 

 

1,511,064

 

 

 

—

 

 

 

17,701

 

 

 

(52,971

)

 

 

1,475,794

 

 

 

—

 

 

 

112,695

 

 

 

Warrant for 4% Membership Interest.

 

 

25,000

 

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

50,000

 

 

 

—

 

 

 

—

 

 

 

5.82 Common shares.

 

 

194,000

 

 

 

206,000

 

 

 

—

 

 

 

—

 

 

 

400,000

 

 

 

—

 

 

 

—

 

 

 

Total Seybert’s

 

 

7,922,787

 

 

 

256,000

 

 

 

64,183

 

 

 

(120,992

)

 

 

8,121,978

 

 

 

—

 

 

 

578,715

 

Tilson Technology

 

120,000 Series B Preferred.

 

 

4,560,000

 

 

 

(4,560,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13,125

 

Management, Inc.

 

21,391 Series C Preferred.

 

 

813,000

 

 

 

(813,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

70,176 Series D Preferred.

 

 

2,666,000

 

 

 

(2,666,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,385 Series E Preferred.

 

 

584,000

 

 

 

(584,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,077 Series F Preferred.

 

 

877,000

 

 

 

(877,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

211,567 A-1 Units of SQF Holdco LLC.

 

 

1,000,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,000,000

 

 

 

—

 

 

 

—

 

 

 

250 Class D-1 Units of SQF Holdco LLC.

 

 

1,000,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,000,000

 

 

 

—

 

 

 

—

 

 

 

Total Tilson

 

 

11,500,000

 

 

 

(9,500,000

)

 

 

—

 

 

 

—

 

 

 

2,000,000

 

 

 

—

 

 

 

13,125

 

 

 

Total Affiliate Investments

 

$

51,668,144

 

 

$

(10,545,654

)

 

$

3,471,127

 

 

$

(1,876,142

)

 

$

42,717,475

 

 

$

925,357

 

 

$

2,735,419

 

 

Total Control and Affiliate Investments

 

$

54,168,144

 

 

$

(11,420,654

)

 

$

3,846,127

 

 

$

(1,876,142

)

 

$

44,717,475

 

 

$

925,357

 

 

$

2,757,430

 

 

This schedule should be read in conjunction with the Corporation’s Consolidated Financial Statements, including the Notes to the Consolidated Financial Statements and the Consolidated Schedule of Portfolio Investments.

(1)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow on investments, capitalized interest and the accretion of discounts. Gross additions also include the movement of an existing portfolio company into this category and out of another category.
(2)
Gross reductions include decreases in the cost basis of investments resulting from principal repayments, sales, note conversions, the exchange of existing securities for new securities and the movement of an existing portfolio company out of this category and into another category.
(3)
Represents the total amount of interest, fees or dividends credited to income for the portion of the period an investment was included in “Control or Affiliate” categories, respectively.

 

See accompanying notes

10

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

June 30, 2025 (Continued)

(Unaudited)

 

Industry Classification

 

Percentage of Total Investments (at fair value) as of June 30, 2025

 

Professional and Business Services

 

 

36.6

%

Consumer Product

 

 

24.9

 

Distribution

 

 

13.1

 

Manufacturing

 

 

8.7

 

Health and Wellness

 

 

5.8

 

Automotive

 

 

5.7

 

Software

 

 

5.2

 

Total Investments

 

 

100

%

 

See accompanying notes

11

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024

 

Company, Geographic Location, Business Description, (Industry) and Website

 

(a)
Type of Investment

 

(b)
Date Acquired

 

(c)
Equity

 

Cost

 

 

(d)(f)
Fair Value

 

 

Percent of Net Assets

Non-Control/Non-Affiliate Investments – 25.5% of net assets: (g) (j)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Caitec, Inc. (e)(l)(p)
Halethorpe, MD. Pet product manufacturer and distributor. (Consumer Goods)
www.caitec.com

 

$1,750,000 Subordinated Secured Promissory Note modified to 14% PIK through December 31, 2024, thereafter 12% (+2% PIK), due June 1, 2026.

 

11/6/20

 

4%

 

 

2,237,456

 

 

 

2,237,456

 

 

6.8%

 

 

36,261 Series A Preferred.

 

12/28/23

 

 

 

 

36,261

 

 

 

—

 

 

 

 

 

150 Class A Units.

 

11/6/20

 

 

 

 

150,000

 

 

 

—

 

 

 

 

 

$1,750,000 Subordinated Secured Promissory Note modified to 14% PIK through December 31, 2024, thereafter 12% (+2% PIK), due June 1, 2026.

 

11/6/20

 

 

 

 

2,237,456

 

 

 

2,237,456

 

 

 

 

 

150 Class A Units.

 

11/6/20

 

 

 

 

150,000

 

 

 

—

 

 

 

 

 

36,261 Series A Preferred.

 

12/28/23

 

 

 

 

36,261

 

 

 

—

 

 

 

 

 

Total Caitec

 

 

 

 

 

 

4,847,434

 

 

 

4,474,912

 

 

 

GoNoodle, Inc. (l)(p)
Nashville, TN. Student engagement education

 

$1,500,000 Secured Note at 12% (1% PIK) due September 30, 2025.

 

11/1/19

 

<1%

 

 

1,440,252

 

 

 

1,440,252

 

 

2.2%

software providing core aligned physical

 

Warrant for 47,324 Series C Preferred.

 

3/1/15

 

 

 

 

25

 

 

 

25

 

 

 

activity breaks. (Software)

 

Warrant for 21,948 Series D Preferred.

 

11/1/19

 

 

 

 

38

 

 

 

38

 

 

 

www.gonoodle.com

 

Total GoNoodle

 

 

 

 

 

 

1,440,315

 

 

 

1,440,315

 

 

 

HDI Acquisition LLC d/b/a Hilton Displays (l)(p)
Greenville, SC. Manufacturing, installation

 

$1,245,119 Term Loan at 12% (+2% PIK) due June 30, 2025.

 

11/8/19

 

0%

 

 

1,071,824

 

 

 

1,071,824

 

 

1.6%

and maintenance of signage and brands. (Manufacturing)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

www.hiltondisplays.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lumious (Tech 2000, Inc.) (p)
Herndon, VA. Develops and delivers IT

 

$850,000 Replacement Term Note at 14% due December 1, 2025.

 

11/16/18

 

0%

 

 

789,944

 

 

 

789,944

 

 

1.2%

training. (Software)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

www.t2000inc.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mattison Avenue Holdings LLC (p)
Dallas, TX. Provider of upscale salon spaces for lease. (Professional and Business Services)
www.mattisonsalonsuites.com

 

$5,500,000 Term Note at 14% due June 25, 2027.

 

3/28/24

 

0%

 

 

5,572,902

 

 

 

5,572,902

 

 

8.5%

Mountain Regional Equipment Solutions (m)(p)

 

$3,000,000 Term Note at 14% due January 16, 2029.

 

1/16/24

 

4%

 

 

2,952,000

 

 

 

2,500,000

 

 

3.8%

Salt Lake City, UT. Provider of maintenance,

 

37,991 Common Units.

 

1/16/24

 

 

 

 

204,545

 

 

 

—

 

 

 

safety, fluid transfer, and custom fabrication

 

Warrant for 1% Membership Interest.

 

1/16/24

 

 

 

 

60,000

 

 

 

—

 

 

 

products. (Distribution)
www.mountainregionaleq.com

 

Total Mountain Regional Equipment Solutions

 

 

 

 

 

 

3,216,545

 

 

 

2,500,000

 

 

 

OnCore Golf Technology, Inc. (e)(p)
Buffalo, NY. Patented and proprietary golf balls utilizing technology and innovation. (Consumer Product)
www.oncoregolf.com

 

300,483 Preferred AA.

 

11/30/18

 

3%

 

 

752,712

 

 

 

100,000

 

 

0.2%

Open Exchange, Inc. (e)(p)

 

397,899 Series C Preferred.

 

11/13/13

 

3%

 

 

1,193,697

 

 

 

700,000

 

 

1.1%

Lincoln, MA. Online presentation and

 

397,899 Common.

 

10/22/19

 

 

 

 

208,243

 

 

 

—

 

 

 

training software. (Software)

 

Total Open Exchange

 

 

 

 

 

 

1,401,940

 

 

 

700,000

 

 

 

www.openexc.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes

 

12

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024 (Continued)

 

Company, Geographic Location, Business Description, (Industry) and Website

 

(a)
Type of Investment

 

(b)
Date Acquired

 

(c)
Equity

 

Cost

 

 

(d)(f)
Fair Value

 

 

Percent of Net Assets

PostProcess Technologies, Inc. (e)(p)
Buffalo, NY. Provides innovative solutions for the post-processing of additive manufactured 3D parts. (Manufacturing)
www.postprocess.com

 

360,002 Series A1 Preferred.

 

11/1/19

 

<1%

 

 

348,875

 

 

 

—

 

 

0.0%

Subtotal Non-Control/Non-Affiliate Investments

 

 

 

 

 

 

 

$

19,442,491

 

 

$

16,649,897

 

 

 

Affiliate Investments – 79.1% of net assets (g) (k)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applied Image, Inc. (l)(p)
Rochester, NY. Global supplier of precision
imaged optical components and calibration

 

$1,750,000 Term Note at 10% (+2% PIK) through February 1, 2025, thereafter 10%, due February 1, 2029.

 

12/31/21

 

12%

 

 

1,750,000

 

 

 

1,750,000

 

 

2.7%

standards for a wide range of industries and

 

Warrant for 1,167 shares.

 

12/31/21

 

 

 

 

—

 

 

 

—

 

 

 

applications. (Manufacturing)

 

Total Applied Image

 

 

 

 

 

 

1,750,000

 

 

 

1,750,000

 

 

 

www.appliedimage.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BMP Food Service Supply Holdco, LLC (h)(l)(m)(p)
Salt Lake City, UT. Provides design, distribution, and installation services for

 

$7,035,000 Second Amended and Restated Term Note; $4,820,000 at 12% and $2,215,000 at 13% (+3% PIK), due November 22, 2027.

 

11/22/22

 

15%

 

 

6,538,026

 

 

 

6,538,026

 

 

10.8%

commercial kitchen renovations and new

 

15.4% Preferred Interest.

 

11/22/22

 

 

 

 

497,619

 

 

 

497,619

 

 

 

builds. (Professional and Business Services)

 

Total BMP Food Service Supply

 

 

 

 

 

 

7,035,645

 

 

 

7,035,645

 

 

 

www.foodservicesupply.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BMP Swanson Holdco, LLC (m)(p)
Plano, TX. Designs, installs, and maintains

 

$1,600,000 Term Note at 12% due May 31, 2028.

 

3/4/21

 

9%

 

 

1,700,115

 

 

 

1,700,115

 

 

3.8%

a variety of fire protection systems.
(Professional and Business Services)

 

Preferred Membership Interest for 9.24%.

 

3/4/21

 

 

 

 

233,333

 

 

 

750,000

 

 

 

www.swansonfire.com

 

Total BMP Swanson

 

 

 

 

 

 

1,933,448

 

 

 

2,450,115

 

 

 

Carolina Skiff LLC (e)(m)(p)
Waycross, GA. Manufacturer of ocean

 

6.0825% Class A Common Membership Interest.

 

1/30/04

 

7%

 

 

15,000

 

 

 

1,208,000

 

 

1.8%

fishing and pleasure boats. (Manufacturing)
www.carolinaskiff.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FCM Industries Holdco LLC (l)(p)
Jacksonville, FL. Commercial mulch

 

$3,380,000 Term Note at 13% due July 31, 2028.

 

7/31/23

 

12%

 

 

3,380,000

 

 

 

3,380,000

 

 

5.2%

installation company that serves a range
of end markets.

 

$420,000 Convertible Note at 10% PIK, due July 31, 2033.

 

7/31/23

 

 

 

 

484,837

 

 

 

—

 

 

 

(Professional and Business Services)

 

Total FCM Industries

 

 

 

 

 

 

3,864,837

 

 

 

3,380,000

 

 

 

www.firstcoastmulch.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Filterworks Acquisition USA, LLC d/b/a Autotality (h)(l)(m)(p)
Deerfield Beach, FL. Provides spray booth
equipment, frame repair machines and paint

 

$2,283,702 Amended Term Note at 6% (+8% PIK) through March 31, 2025, thereafter 12% (+2% PIK), due March 31, 2026.

 

11/18/19

 

8%

 

 

2,928,648

 

 

 

2,928,648

 

 

4.5%

booth filter services for collision shops.

 

626.2 shares Class A-1 Units.

 

6/3/22

 

 

 

 

626,243

 

 

 

—

 

 

 

(Automotive)

 

417.7 shares Class A-0 Units.

 

9/30/22

 

 

 

 

139,232

 

 

 

—

 

 

 

www.autotality.com

 

Total Filterworks

 

 

 

 

 

 

3,694,123

 

 

 

2,928,648

 

 

 

Highland All About People Holdings, Inc. (l)(p)

 

$3,000,000 Term Note at 12% (+4% PIK) due August 7, 2028.

 

8/7/23

 

12%

 

 

3,175,091

 

 

 

3,175,091

 

 

5.8%

Phoenix, AZ. Full-service staffing and

 

1,000,000 Class A Units.

 

8/7/23

 

 

 

 

1,000,000

 

 

 

600,000

 

 

 

executive search firm with a focus on the

 

Total Highland All About People

 

 

 

 

 

 

4,175,091

 

 

 

3,775,091

 

 

 

healthcare industry.
(Professional and Business Services)
www.allaboutpeople.net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inter-National Electronic Alloys LLC
d/b/a EFINEA (l)(m)(p)

 

$3,288,235 Term Note at 12% (+2% PIK) due April 4, 2028.

 

4/4/23

 

6%

 

 

3,372,069

 

 

 

3,372,069

 

 

6.7%

Oakland, NJ. Stocking distributor of

 

75.3 Class B Preferred Units.

 

4/4/23

 

 

 

 

1,011,765

 

 

 

1,011,765

 

 

 

controlled expansion alloys, electronic grade

 

Total EFINEA

 

 

 

 

 

 

4,383,834

 

 

 

4,383,834

 

 

 

nickels, refractory grade metals and alloys,
and soft magnetic alloys. (Distribution)
www.nealloys.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes

13

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024 (Continued)

 

Company, Geographic Location, Business Description, (Industry) and Website

 

(a)
Type of Investment

 

(b)
Date Acquired

 

(c)
Equity

 

Cost

 

 

(d)(f)
Fair Value

 

 

Percent of Net Assets

Mobile RN Holdings LLC d/b/a Mobile IV Nurses (l)(m)(p)

 

$2,500,000 Term Note at 14% (+1% PIK) due October 2, 2029.

 

10/2/24

 

6%

 

 

2,506,319

 

 

 

2,506,319

 

 

4.4%

Phoenix, AZ. IV hydration therapy service

 

6,375 Class A Common Units.

 

10/2/24

 

 

 

 

375,000

 

 

 

375,000

 

 

 

provider. (Health and Wellness)

 

Total Mobile IV Nurses

 

 

 

 

 

 

2,881,319

 

 

 

2,881,319

 

 

 

www.mobileivnurses.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pressure Pro, Inc. (h)(l)(p)
Harrisonville, MO. A provider of branded

 

$3,000,000 Term Note at 12% (+3% PIK) due January 19, 2028.

 

1/19/23

 

10%

 

 

1,702,705

 

 

 

1,702,705

 

 

3.8%

tire pressure monitoring systems consisting

 

Warrant for 10% Membership Interest.

 

1/19/23

 

 

 

 

30,000

 

 

 

750,000

 

 

 

of a suite of proprietary hardware

 

Total Pressure Pro

 

 

 

 

 

 

1,732,705

 

 

 

2,452,705

 

 

 

and software. (Manufacturing)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

www.pressurepro.us

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seybert’s Billiards Corporation
d/b/a The Rack Group (l)(p)
Coldwater, MI. Billiard supplies.

 

$6,099,131 Third Amended and Restated Term Note at 12% (+2% PIK) due January 19, 2026.

 

11/22/21

 

8%

 

 

6,167,723

 

 

 

6,167,723

 

 

12.1%

(Consumer Product)

 

Warrant for 4% Membership Interest.

 

1/19/21

 

 

 

 

25,000

 

 

 

25,000

 

 

 

www.seyberts.com

 

$1,435,435 Term Note at 12% (+2% PIK) due January 19, 2026.

 

1/19/21

 

 

 

 

1,511,064

 

 

 

1,511,064

 

 

 

 

 

Warrant for 4% Membership Interest.

 

1/19/21

 

 

 

 

25,000

 

 

 

25,000

 

 

 

 

 

5.82 Common shares.

 

10/24/22

 

 

 

 

194,000

 

 

 

194,000

 

 

 

 

 

Total Seybert’s

 

 

 

 

 

 

7,922,787

 

 

 

7,922,787

 

 

 

Tilson Technology Management, Inc. (p)

 

*120,000 Series B Preferred.

 

1/20/15

 

8%

 

 

600,000

 

 

 

4,560,000

 

 

17.6%

Portland, ME. Provides network deployment

 

*21,391 Series C Preferred.

 

9/28/16

 

 

 

 

200,000

 

 

 

813,000

 

 

 

construction and information system services

 

*70,176 Series D Preferred.

 

9/29/17

 

 

 

 

800,000

 

 

 

2,666,000

 

 

 

management for cellular, fiber optic and

 

*15,385 Series E Preferred.

 

3/15/19

 

 

 

 

500,012

 

 

 

584,000

 

 

 

wireless systems providers. Its affiliated

 

23,077 Series F Preferred.

 

6/15/20

 

 

 

 

750,003

 

 

 

877,000

 

 

 

entity, SQF, LLC is a CLEC supporting

 

211,567 A-1 Units of SQF Holdco LLC.

 

3/15/19

 

 

 

 

—

 

 

 

1,000,000

 

 

 

small cell 5G deployment.
(Professional and Business Services)

 

250 Class D-1 Units of SQF Holdco LLC.

 

2/16/23

 

 

 

 

250,000

 

 

 

1,000,000

 

 

 

www.tilsontech.com

 

Total Tilson

 

 

 

 

 

 

3,100,015

 

 

 

11,500,000

 

 

 

 

 

*2.5% dividend payable quarterly.

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Affiliate Investments

 

 

 

 

 

 

 

$

42,488,804

 

 

$

51,668,144

 

 

 

Control Investments - 3.8% of net assets (g) (o)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ITA Acquisition, LLC (l)(m)(p)
Ormond Beach, FL. Blind and shade
manufacturing. (Manufacturing)
www.itawindowfashions.com

 

$2,297,808 Fourth Amended and Restated Term Note at 3% (+11% PIK) through December 31, 2024, thereafter 12% (+2% PIK), due June 21, 2026.

 

6/22/21

 

37%

 

 

3,244,220

 

 

 

1,642,968

 

 

3.8%

 

 

$1,500,000 Term Note at 3% (+11% PIK) through December 31, 2024, thereafter 12% (+2% PIK), due June 21, 2026.

 

6/22/21

 

 

 

 

1,820,910

 

 

 

857,032

 

 

 

 

 

1,124 Class A Preferred Units and 1,924 Class B Common Units.

 

6/22/21

 

 

 

 

1,123,810

 

 

 

—

 

 

 

 

 

Total ITA

 

 

 

 

 

 

6,188,940

 

 

 

2,500,000

 

 

 

Subtotal Control Investments

 

 

 

 

 

 

 

$

6,188,940

 

 

$

2,500,000

 

 

 

TOTAL INVESTMENTS – 108.4%

 

 

 

 

 

 

 

$

68,120,235

 

 

$

70,818,041

 

 

 

LIABILITIES IN EXCESS OF OTHER ASSETS - (8.4%)

 

 

 

 

 

 

 

 

 

 

 

(5,485,521

)

 

 

NET ASSETS – 100%

 

 

 

 

 

 

 

 

 

 

$

65,332,520

 

 

 

 

See accompanying notes

14

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024 (Continued)

 

Notes to the Consolidated Schedule of Portfolio Investments

(a)
At December 31, 2024, restricted securities represented 100% of the fair value of the investment portfolio. Restricted securities are subject to one or more restrictions on resale and are not freely marketable. Type of investment for equity position is in the form of shares unless otherwise noted as units or interests, i.e., preferred shares, common shares.
(b)
The Date Acquired column indicates the date on which the Corporation first acquired an investment.
(c)
Each equity percentage estimates the Corporation’s ownership interest in the applicable portfolio investment. The estimated ownership is calculated based on the percent of outstanding voting securities held by the Corporation or the potential percentage of voting securities held by the Corporation upon exercise of warrants or conversion of debentures, or other available data. If applicable, the symbol “<1%” indicates that the Corporation holds an equity interest of less than one percent.
(d)
The Corporation’s investments are carried at fair value in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820 “Fair Value Measurements and Disclosures,” which defines fair value and establishes guidelines for measuring fair value. At December 31, 2024, ASC 820 designates 100% of the Corporation’s investments as “Level 3” assets. Under the valuation policy of the Corporation, unrestricted publicly traded securities are valued at the closing price for these securities on the last trading day of the reporting period. Restricted securities are subject to restrictions on resale and are valued at fair value as determined in good faith by our external investment advisor Rand Capital Management, LLC (“RCM”) and approved by the Board of Directors. Fair value is considered to be the amount that the Corporation may reasonably expect to receive for portfolio securities when sold on the valuation date. Valuations as of any particular date, however, are not necessarily indicative of amounts which may ultimately be realized as a result of future sales or other dispositions of securities and these favorable or unfavorable differences could be material. Among the factors considered in determining the fair value of restricted securities are the financial condition and operating results, projected operations, and other analytical data relating to the investment. Also considered are the market prices for unrestricted securities of the same class (if applicable) and other matters which may have an impact on the value of the portfolio company (see Note 3. “Investments” to the Consolidated Financial Statements).
(e)
These investments are non-income producing. All other investments are income producing. Non-income producing investments have not generated cash payments of interest or dividends including LLC tax-related distributions within the last twelve months or are not expected to do so going forward. If a debt or a preferred equity investment fails to make its most recent payment, then the investment will also be classified as non-income producing.
(f)
As of December 31, 2024, the total cost of investment securities was approximately $68.1 million. Net unrealized appreciation was approximately $2.7 million, which was comprised of $10.8 million of unrealized appreciation of investment securities and ($8.1) million of unrealized depreciation of investment securities. At December 31, 2024, the aggregate gross unrealized gain for federal income tax purposes was approximately $10.8 million and the aggregate gross unrealized loss for federal income tax purposes was ($7.0) million. The net unrealized gain for federal income tax purposes was $3.8 million based on a tax cost of $65.9 million.
(g)
All of the Corporation’s portfolio assets are pledged as collateral for purposes of securing the Corporation’s senior secured revolving credit facility pursuant to a general security agreement, dated June 27, 2022, between the Corporation, the subsidiaries listed therein, and the Lender (as defined herein).
(h)
Reduction in cost and fair value from previously reported balances reflects current principal repayment.
(i)
Represents interest due (amounts over $100,000) from investments included as interest receivable on the Corporation’s Consolidated Statements of Financial Position. None at December 31, 2024.
(j)
Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
(k)
Affiliate Investments are defined by the 1940 Act, as those Non-Control investments in companies in which between 5% and 25% of the voting securities are owned by the Corporation.
(l)
Payment in kind (PIK) represents earned interest that is added to the cost basis of the investment and due at maturity. The amount of PIK earned is included in the interest rate detailed in the “Type of Investment” column, unless it has been noted with a (+), in which case the PIK is in addition to the face amount of interest due on the security.
(m)
Equity holdings are held in a wholly owned (100%) “blocker corporation” subsidiary of Rand Capital Corporation for federal income tax and Regulated Investment Company (RIC) compliance purposes.
(n)
Indicates assets that the Corporation believes do not represent “qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of the Corporation’s total assets at the time of acquisition of any additional non-qualifying assets. The Corporation had no investments in non-qualifying assets as of December 31, 2024.
(o)
Control Investments are defined by the 1940 Act as investments in companies in which more than 25% of the voting securities are owned by the Corporation or where greater than 50% of the board representation is maintained.
(p)
Investments classified as Level 3 for purposes of the fair value determination by RCM and approved by the Board of Directors.

15

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024 (Continued)

 

Investments in and Advances to Affiliates

 

Company

 

Type of Investment

 

January 1, 2024, Fair Value

 

 

Net Change in Unrealized Appreciation (Depreciation)

 

 

Gross Additions
(1)

 

 

Gross Reductions
(2)

 

 

December 31, 2024, Fair Value

 

 

Net Realized Gains (Losses)

 

 

Interest/
Dividend/
Fee Income (3)

 

Control Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ITA Acquisition, LLC

 

$2,297,808 Fourth Amended and Restated Term Note at 3% (+11% PIK) through December 31, 2024, thereafter 12% (+2% PIK), due June 21, 2026.

 

$

2,496,708

 

 

$

(1,601,252

)

 

$

747,512

 

 

$

—

 

 

$

1,642,968

 

 

$

—

 

 

$

472,494

 

 

 

$1,500,000 Term Note at 3% (+11% PIK) through December 31, 2024, thereafter 12% (+2% PIK), due June 21, 2026.

 

 

1,652,252

 

 

 

(963,878

)

 

 

168,658

 

 

 

—

 

 

 

857,032

 

 

 

—

 

 

 

279,343

 

 

 

1,124 Class A Preferred Units and 1,924 Class B Common Units.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total ITA

 

 

4,148,960

 

 

 

(2,565,130

)

 

 

916,170

 

 

 

—

 

 

 

2,500,000

 

 

 

—

 

 

 

751,837

 

 

Total Control Investments

 

$

4,148,960

 

 

$

(2,565,130

)

 

$

916,170

 

 

$

—

 

 

$

2,500,000

 

 

$

—

 

 

$

751,837

 

Affiliate Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applied Image, Inc.

 

$1,750,000 Term Note at 10% (+2% PIK) through February 1, 2025, thereafter 10%, due February 1, 2029.

 

$

1,750,000

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,750,000

 

 

$

—

 

 

$

219,605

 

 

Warrant for 1,167 shares.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Total Applied Image

 

 

1,750,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,750,000

 

 

 

—

 

 

 

219,605

 

BMP Food Service Supply Holdco, LLC

 

$7,035,000 Second Amended and Restated Term Note; $4,820,000 at 12% and $2,215,000 at 13% (+3% PIK), due November 22, 2027.

 

 

6,394,953

 

 

 

—

 

 

 

177,911

 

 

 

(34,838

)

 

 

6,538,026

 

 

 

—

 

 

 

892,470

 

 

 

15.4% Preferred Interest.

 

 

1,000,000

 

 

 

(610,000

)

 

 

107,619

 

 

 

—

 

 

 

497,619

 

 

 

—

 

 

 

—

 

 

 

Total FSS

 

 

7,394,953

 

 

 

(610,000

)

 

 

285,530

 

 

 

(34,838

)

 

 

7,035,645

 

 

 

—

 

 

 

892,470

 

BMP Swanson Holdco, LLC

 

$1,600,000 Term Note at 12% due May 31, 2028.

 

 

1,700,115

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,700,115

 

 

 

—

 

 

 

214,611

 

 

Preferred Membership Interest for 9.24%.

 

 

500,000

 

 

 

250,000

 

 

 

—

 

 

 

—

 

 

 

750,000

 

 

 

—

 

 

 

—

 

 

Total BMP Swanson

 

 

2,200,115

 

 

 

250,000

 

 

 

—

 

 

 

—

 

 

 

2,450,115

 

 

 

—

 

 

 

214,611

 

Carolina Skiff LLC

 

6.0825% Class A Common Membership Interest.

 

 

1,708,000

 

 

 

(500,000

)

 

 

—

 

 

 

—

 

 

 

1,208,000

 

 

 

—

 

 

 

—

 

DSD Operating, LLC

 

$3,063,276 Term Note at 12% (+2% PIK) due September 30, 2026.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

1,067 Class A Preferred shares.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,699

 

 

 

—

 

 

1,067 Class B Common shares.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Total DSD

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,699

 

 

 

—

 

FCM Industries Holdco LLC

 

$3,380,000 Term Note at 13% due July 31, 2028.

 

 

3,380,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,380,000

 

 

 

—

 

 

 

473,513

 

 

 

$420,000 Convertible Note at 10% PIK, due July 31, 2033.

 

 

438,156

 

 

 

(484,837

)

 

 

46,681

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

46,681

 

 

 

Total FCM

 

 

3,818,156

 

 

 

(484,837

)

 

 

46,681

 

 

 

—

 

 

 

3,380,000

 

 

 

—

 

 

 

520,194

 

Filterworks Acquisition USA, LLC

 

$2,283,702 Amended Term Note at 6% (+8% PIK) through March 31, 2025, thereafter 12% (+2% PIK), due March 31, 2026.

 

 

2,880,946

 

 

 

—

 

 

 

253,952

 

 

 

(206,250

)

 

 

2,928,648

 

 

 

—

 

 

 

428,268

 

 

 

626.2 shares Class A-1 Units.

 

 

256,994

 

 

 

(256,994

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

417.7 shares Class A-0 Units.

 

 

139,232

 

 

 

(139,232

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total Filterworks

 

 

3,277,172

 

 

 

(396,226

)

 

 

253,952

 

 

 

(206,250

)

 

 

2,928,648

 

 

 

—

 

 

 

428,268

 

Highland All About People Holdings, Inc.

 

$3,000,000 Term Note at 12% (+4% PIK) due August 7, 2028.

 

 

3,049,187

 

 

 

—

 

 

 

125,904

 

 

 

—

 

 

 

3,175,091

 

 

 

—

 

 

 

515,616

 

 

 

1,000,000 Class A Units.

 

 

1,000,000

 

 

 

(400,000

)

 

 

—

 

 

 

—

 

 

 

600,000

 

 

 

—

 

 

 

—

 

 

 

Total All About People

 

 

4,049,187

 

 

 

(400,000

)

 

 

125,904

 

 

 

—

 

 

 

3,775,091

 

 

 

—

 

 

 

515,616

 

Inter-National Electronic Alloys

 

$3,288,235 Term Note at 12% (+2% PIK) due April 4, 2028.

 

 

3,338,074

 

 

 

—

 

 

 

33,995

 

 

 

—

 

 

 

3,372,069

 

 

 

—

 

 

 

457,071

 

LLC

 

75.3 Class B Preferred Units.

 

 

1,011,765

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,011,765

 

 

 

—

 

 

 

—

 

 

 

Total INEA

 

 

4,349,839

 

 

 

—

 

 

 

33,995

 

 

 

—

 

 

 

4,383,834

 

 

 

—

 

 

 

457,071

 

 

See accompanying notes

16

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024 (Continued)

 

Company

 

Type of Investment

 

January 1, 2024, Fair Value

 

 

Net Change in Unrealized Appreciation (Depreciation)

 

 

Gross Additions
(1)

 

 

Gross Reductions
(2)

 

 

December 31, 2024, Fair Value

 

 

Net Realized Gains (Losses)

 

 

Interest/
Dividend/
Fee Income (3)

 

Knoa Software, Inc.

 

973,533 Series A-1 Convertible Preferred.

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,876,922 Series B Preferred.

 

 

100,000

 

 

 

1,129,155

 

 

 

—

 

 

 

(1,229,155

)

 

 

—

 

 

 

(1,229,155

)

 

 

—

 

 

 

Total Knoa

 

 

100,000

 

 

 

1,129,155

 

 

 

—

 

 

 

(1,229,155

)

 

 

—

 

 

 

(1,229,155

)

 

 

—

 

Mezmeriz, Inc.

 

1,554,565 Series Seed Preferred.

 

 

—

 

 

 

742,850

 

 

 

—

 

 

 

(742,850

)

 

 

—

 

 

 

(742,850

)

 

 

—

 

Mobile RN Holdings LLC

 

$2,500,000 Term Note at 14% (+1% PIK) due October 2, 2029.

 

 

—

 

 

 

—

 

 

 

2,506,319

 

 

 

—

 

 

 

2,506,319

 

 

 

—

 

 

 

97,667

 

 

 

6,375 Class A Common Units.

 

 

—

 

 

 

—

 

 

 

375,000

 

 

 

—

 

 

 

375,000

 

 

 

—

 

 

 

—

 

 

 

Total Mobile IV Nurses

 

 

—

 

 

 

—

 

 

 

2,881,319

 

 

 

—

 

 

 

2,881,319

 

 

 

—

 

 

 

97,667

 

Pressure Pro, Inc.

 

$3,000,000 Term Note at 12% (+3% PIK) due January 19, 2028.

 

 

3,063,436

 

 

 

—

 

 

 

66,721

 

 

 

(1,427,452

)

 

 

1,702,705

 

 

 

—

 

 

 

367,382

 

 

 

Warrant for 10% Membership Interest.

 

 

30,000

 

 

 

720,000

 

 

 

—

 

 

 

—

 

 

 

750,000

 

 

 

—

 

 

 

50,000

 

 

 

Total Pressure Pro

 

 

3,093,436

 

 

 

720,000

 

 

 

66,721

 

 

 

(1,427,452

)

 

 

2,452,705

 

 

 

—

 

 

 

417,382

 

SciAps, Inc.

 

187,500 Series A Preferred.

 

 

1,500,000

 

 

 

—

 

 

 

—

 

 

 

(1,500,000

)

 

 

—

 

 

 

3,705,106

 

 

 

—

 

 

 

274,299 Series A1 Convertible Preferred.

 

 

504,710

 

 

 

—

 

 

 

—

 

 

 

(504,710

)

 

 

—

 

 

 

1,246,669

 

 

 

—

 

 

 

117,371 Series B Convertible Preferred.

 

 

250,000

 

 

 

—

 

 

 

—

 

 

 

(250,000

)

 

 

—

 

 

 

617,518

 

 

 

—

 

 

 

113,636 Series C Convertible Preferred.

 

 

175,000

 

 

 

—

 

 

 

—

 

 

 

(175,000

)

 

 

—

 

 

 

432,262

 

 

 

—

 

 

 

369,698 Series C1 Convertible Preferred.

 

 

399,274

 

 

 

—

 

 

 

—

 

 

 

(399,274

)

 

 

—

 

 

 

986,235

 

 

 

—

 

 

 

147,059 Series D Convertible Preferred.

 

 

250,000

 

 

 

—

 

 

 

—

 

 

 

(250,000

)

 

 

—

 

 

 

617,518

 

 

 

—

 

 

 

Warrant to purchase Series D-1 Preferred.

 

 

45,000

 

 

 

—

 

 

 

—

 

 

 

(45,000

)

 

 

—

 

 

 

111,153

 

 

 

—

 

 

 

$2,090,000 Second Amended and Restated Secured Subordinated Promissory Note at 12% due August 20, 2024.

 

 

2,090,000

 

 

 

—

 

 

 

—

 

 

 

(2,090,000

)

 

 

—

 

 

 

—

 

 

 

311,462

 

 

 

Total SciAps

 

 

5,213,984

 

 

 

—

 

 

 

—

 

 

 

(5,213,984

)

 

 

—

 

 

 

7,716,461

 

 

 

311,462

 

Seybert’s Billiards Corporation

 

$6,099,131 Third Amended and Restated Term Note at 12% (+2% PIK) due January 19, 2026.

 

 

4,274,917

 

 

 

—

 

 

 

1,892,806

 

 

 

—

 

 

 

6,167,723

 

 

 

—

 

 

 

889,979

 

 

 

Warrant for 4% Membership Interest.

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

$1,435,435 Term Note at 12% (+2% PIK) due January 19, 2026.

 

 

1,475,613

 

 

 

—

 

 

 

35,451

 

 

 

—

 

 

 

1,511,064

 

 

 

—

 

 

 

225,732

 

 

 

Warrant for 4% Membership Interest.

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

5.82 Common shares.

 

 

194,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

194,000

 

 

 

—

 

 

 

—

 

 

 

Total Seybert’s

 

 

5,994,530

 

 

 

—

 

 

 

1,928,257

 

 

 

—

 

 

 

7,922,787

 

 

 

—

 

 

 

1,115,711

 

Tilson Technology

 

120,000 Series B Preferred.

 

 

4,559,500

 

 

 

500

 

 

 

—

 

 

 

—

 

 

 

4,560,000

 

 

 

—

 

 

 

52,500

 

Management, Inc.

 

21,391 Series C Preferred.

 

 

812,800

 

 

 

200

 

 

 

—

 

 

 

—

 

 

 

813,000

 

 

 

—

 

 

 

—

 

 

 

70,176 Series D Preferred.

 

 

2,666,400

 

 

 

(400

)

 

 

—

 

 

 

—

 

 

 

2,666,000

 

 

 

—

 

 

 

—

 

 

 

15,385 Series E Preferred.

 

 

584,500

 

 

 

(500

)

 

 

—

 

 

 

—

 

 

 

584,000

 

 

 

—

 

 

 

—

 

 

 

23,077 Series F Preferred.

 

 

876,800

 

 

 

200

 

 

 

—

 

 

 

—

 

 

 

877,000

 

 

 

—

 

 

 

—

 

 

 

211,567 A-1 Units of SQF Holdco LLC.

 

 

800,000

 

 

 

200,000

 

 

 

—

 

 

 

—

 

 

 

1,000,000

 

 

 

302,677

 

 

 

—

 

 

 

250 Class D-1 Units of SQF Holdco LLC.

 

 

250,000

 

 

 

750,000

 

 

 

—

 

 

 

—

 

 

 

1,000,000

 

 

 

94,587

 

 

 

—

 

 

 

Total Tilson

 

 

10,550,000

 

 

 

950,000

 

 

 

—

 

 

 

—

 

 

 

11,500,000

 

 

 

397,264

 

 

 

52,500

 

 

 

Total Affiliate Investments

 

$

53,499,372

 

 

$

1,400,942

 

 

$

5,622,359

 

 

$

(8,854,529

)

 

$

51,668,144

 

 

$

6,165,419

 

 

$

5,242,557

 

 

Total Control and Affiliate Investments

 

$

57,648,332

 

 

$

(1,164,188

)

 

$

6,538,529

 

 

$

(8,854,529

)

 

$

54,168,144

 

 

$

6,165,419

 

 

$

5,994,394

 

 

See accompanying notes

17

Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024 (Continued)

 

This schedule should be read in conjunction with the Corporation’s Consolidated Financial Statements, including the Notes to the Consolidated Financial Statements and the Consolidated Schedule of Portfolio Investments.

(1)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow on investments, capitalized interest and the accretion of discounts. Gross additions also include the movement of an existing portfolio company into this category and out of another category.
(2)
Gross reductions include decreases in the cost basis of investments resulting from principal repayments, sales, note conversions, the exchange of existing securities for new securities and the movement of an existing portfolio company out of this category and into another category.
(3)
Represents the total amount of interest, fees or dividends credited to income for the portion of the period an investment was included in “Control or Affiliate” categories, respectively.

 

See accompanying notes

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Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2024 (Continued)

 

Industry Classification

 

Percentage of Total Investments (at fair value) as of December 31, 2024

 

Professional and Business Services

 

 

47.6

%

Consumer Product

 

 

17.7

 

Manufacturing

 

 

12.7

 

Distribution

 

 

9.7

 

Software

 

 

4.1

 

Automotive

 

 

4.1

 

Health and Wellness

 

 

4.1

 

Total Investments

 

 

100

%

 

See accompanying notes

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Table of Contents

RAND CAPITAL CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

Note 1. ORGANIZATION

 

Rand Capital Corporation (“Rand”, the “Corporation”, “we”, “us” and “our”) was incorporated under the laws of New York in February 1969. We completed our initial public offering in 1971 and operated as an internally managed, closed end, management investment company from that time until November 2019.

 

In November 2019, Rand completed a stock sale transaction (the “Closing”) with East Asset Management (“East”). The transaction consisted of a $25 million investment in Rand by East, in the form of cash and contributed portfolio assets, in exchange for approximately 8.3 million shares of Rand common stock. East owns approximately 64% of Rand Capital’s outstanding common stock at June 30, 2025. Concurrent with the Closing, Rand Capital Management, LLC (“RCM”), a registered investment adviser, was retained by Rand as its external investment adviser and administrator (the Closing and the retention of RCM as our investment adviser and administrator are collectively referred to herein as the “Transaction”). The term of the Corporation’s investment advisory and management agreement (the “Investment Management Agreement”) with RCM was extended after approval of its renewal by our Board of Directors (the “Board”) in October 2024 and is currently scheduled to expire on December 31, 2025. In addition, the term of the Corporation’s administration agreement (the “Administration Agreement”) with RCM was extended after approval of its renewal by the Board in October 2024 and is currently scheduled to expire on December 31, 2025. The Investment Management Agreement and Administration Agreement can continue for successive annual periods after December 31, 2025 provided that such continuance is specifically approved at least annually by (i)(A) the affirmative vote of a majority of the Board or (B) the affirmative vote of a majority of our outstanding voting securities, and (ii) the affirmative vote of a majority of our directors who are not “interested persons,” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), of us, RCM or our respective affiliates. Pursuant to the terms of the Investment Management Agreement, Rand pays RCM a base management fee and may pay an incentive fee, if specified benchmarks are met.

 

In connection with the Closing, we also entered into a shareholder agreement with East (the “Shareholder Agreement”). Pursuant to the terms of the Shareholder Agreement, East has the right to designate two or three persons, depending upon the size of the Board, for nomination for election to the Board. East has the right to designate (i) up to two persons if the size of the Board is composed of fewer than seven directors or (ii) up to three persons if the size of the Board is composed of seven or more directors. East’s right to designate persons for nomination for election to the Board under the Shareholder Agreement is the exclusive means by which East may designate or nominate persons for election to the Board. The Board currently consists of five directors, and Adam S. Gusky and Benjamin E. Godley are East’s designees on the Board.

 

We currently operate as an externally managed, closed-end, non-diversified management investment company. We have elected to be regulated as a business development company (“BDC”) under the 1940 Act. As a BDC, we are required to comply with certain regulatory requirements specified in the 1940 Act. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets” and provide managerial assistance to the portfolio companies in which we invest. See “Item 1. Business - Regulations, Business Development Company Regulations” in our Annual Report on Form 10-K for the year ended December 31, 2024.

 

In connection with the completion of the Transaction, we have shifted to an investment strategy focused on higher yielding debt investments and elected U.S. Federal tax treatment as a regulated investment company (“RIC”).

 

The Board declared the following quarterly cash dividends during the six months ended June 30, 2025:

 


Quarter

 

Dividend/Share
Amount

 

 

Record Date

 

Payment Date

1st

 

$

0.29

 

 

March 14, 2025

 

March 28, 2025

2nd

 

$

0.29

 

 

May 30, 2025

 

June 13, 2025

 

On December 5, 2024, the Board declared a dividend of $4.20 per share. The dividend was paid in the aggregate combination of 20% in cash and 80% in newly issued shares of common stock on January 24, 2025 to shareholders of record as of December 16, 2024. The portion of the dividend paid using common stock increased the number of issued and outstanding shares of common stock from 2,581,021 shares to 2,969,814 shares as of January 24, 2025.

 

 

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Table of Contents

In order to continue to qualify as a RIC, Rand holds several of its equity investments in wholly-owned subsidiaries that facilitate a tax structure that is advantageous to the RIC election. Rand has the following wholly-owned blocker subsidiaries in place at June 30, 2025: Rand BMP Swanson Holdings Corp., Rand Carolina Skiff Holdings Corp., Rand DSD Holdings Corp., Rand Filterworks Holdings Corp., Rand FSS Holdings Corp., Rand INEA Holdings Corp., and Rand ITA Holdings Corp. (collectively the “Blocker Corps”). These subsidiaries are consolidated using United States generally accepted accounting principles (“GAAP”) for financial reporting purposes.

 

On October 7, 2020, Rand, RCM and certain of their affiliates received an exemptive order from the Securities and Exchange Commission (“SEC”) to permit Rand to co-invest in portfolio companies with certain affiliates, including other BDCs and registered investment companies managed by RCM and certain of its affiliates in a manner consistent with Rand’s investment objective, policies, strategies and restrictions as well as regulatory requirements, subject to compliance with certain conditions (the “Order”). On March 29, 2021, the SEC granted Rand, Callodine Group, LLC (“Callodine”), which holds a controlling interest in RCM, and certain of their affiliates a new exemptive order (the “New Order”) that superseded the Order and permits Rand to co-invest with affiliates managed by RCM and Callodine. Callodine is a yield focused asset management platform. Pursuant to the New Order, Rand is generally permitted to co-invest with affiliates covered by the New Order if a “required majority” (as defined in Section 57(o) of the 1940 Act) of Rand’s independent directors make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to Rand and its shareholders and do not involve overreaching in respect of Rand or its shareholders on the part of any person concerned, (2) the transaction is consistent with the interests of Rand’s shareholders and is consistent with Rand’s investment objective and strategies and (3) the investment by Rand’s affiliates would not disadvantage Rand, and Rand’s participation would not be on a basis different from or less advantageous than that on which Rand’s affiliates are investing. In addition, on September 6, 2022, the SEC granted an amendment to the New Order to permit Rand to participate in follow-on investments in our existing portfolio companies with certain Affiliated Funds (as defined in the New Order) that do not hold any investments in such existing portfolio companies.

 

The accompanying consolidated financial statements describe the operations of Rand and its wholly-owned subsidiaries, Rand Capital Sub, LLC (“Rand Sub”) and the Blocker Corps (collectively, the “Corporation”).

 

Our corporate office is located in Buffalo, NY and our website address is www.randcapital.com. We make available on our website our annual and quarterly reports, proxy statements and other information as soon as reasonably practicable after such material is filed with the SEC. Our shares are traded on the Nasdaq Capital Market under the symbol “RAND.”

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – It is our opinion that the accompanying consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation in accordance with GAAP of the consolidated financial position, results of operations, cash flows and statement of changes in net assets for the interim periods presented. The Corporation is an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies. Certain information and note disclosures normally included in audited annual consolidated financial statements prepared in accordance with GAAP have been omitted; however, we believe that the disclosures made are adequate to make the information presented herein not misleading. The interim results for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year.

These statements should be read in conjunction with the consolidated financial statements and the notes included in our Annual Report on Form 10-K for the year ended December 31, 2024. Information contained in this filing should also be reviewed in conjunction with our related filings with the SEC prior to the date of this report.

Principles of Consolidation - The consolidated financial statements include the accounts of Rand and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Fair Value of Financial Instruments – The carrying amounts reported in the consolidated statement of financial position of cash, interest receivable, accounts payable and accrued expenses approximate fair value because of the immediate or short-term nature of these financial instruments.

Investment Classification – In accordance with the provisions of the 1940 Act, the Corporation classifies its investments by level of control. Under the 1940 Act, “Control Investments” are investments in companies that the Corporation is deemed to “Control” if it owns more than 25% of the voting securities of the company or has greater than 50% representation on the company’s board of directors or other similar governing body. “Affiliate Investments” are companies in which the Corporation owns between 5% and 25% of the voting securities of the company. “Non-Control/Non-Affiliate Investments” are those companies that are neither Control Investments nor Affiliate Investments.

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Table of Contents

Investments - Investments are valued at fair value as determined in good faith by RCM and approved by the Board. The Corporation generally invests in loan, debt, and equity instruments and there is no single standard for determining fair value of these investments. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio company while employing a consistent valuation process. Due to the inherent uncertainty of determining the fair value of portfolio investments, there may be material risks associated with this determination including that estimated fair values may differ from the values that would have been used had a readily available market value for the investments existed and these differences could be material if the Corporation’s assumptions and judgments differ from results of actual liquidation events. The Corporation analyzes and values each investment quarterly and records unrealized depreciation for an investment that it believes has become impaired, including where collection of a loan or debt security or realization of the recorded value of an equity security is doubtful. Conversely, the Corporation will record unrealized appreciation if it believes that an underlying portfolio company has appreciated in value and, therefore, the Corporation’s equity securities in the underlying portfolio company have also appreciated in value. Additionally, the Corporation continues to assess any material risks associated with this fair value determination, including risks associated with material conflicts of interest. Under the valuation policy of the Corporation, unrestricted publicly traded securities are valued at the closing price for these securities on the last trading day of the reporting period.

Qualifying Assets - As of June 30, 2025, the Corporation’s portfolio of investments only included qualifying assets as defined in Section 55(a) of the 1940 Act. The Corporation’s qualifying assets consist of qualifying investments in privately held businesses, principally based in the United States.

Revenue Recognition - Interest Income - Interest income is recognized on the accrual basis except where the investment is in default or where receipt of such interest is otherwise presumed to be in doubt. In such cases, interest is recognized at the time of receipt. A reserve for possible losses on interest receivable is maintained when appropriate. The reserve for possible losses of interest receivable was $25,337 as of June 30, 2025. There was no reserve for possible losses of interest receivable as of December 31, 2024.

The Corporation holds debt securities in its investment portfolio that contain payment-in-kind (“PIK”) interest provisions. PIK interest, computed at the contractual rate specified in each debt agreement, is added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. For investments with PIK interest, the Corporation will not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not collectible. Loans which are on non-accrual status remain in such status until the borrower has demonstrated the ability and intent to pay contractual amounts due or such loans become current. As of June 30, 2025, the Corporation’s debt investment in ITA Acquisition, LLC (ITA) was on non-accrual status with a cost of $5.4 million and fair value of $2.0 million, which represented 8.9% and 3.8% of the investment portfolio, respectively. As of December 31, 2024, none of the Corporation’s investments were on non-accrual status. For the six months ended June 30, 2025 and 2024, 33.9% and 18.9%, respectively, of the Corporation’s total investment income was attributable to non-cash PIK interest income.

Revenue Recognition - Dividend Income – The Corporation may receive cash distributions from portfolio companies that are limited liability companies or corporations, and these distributions are classified as dividend income on the consolidated statement of operations. Dividend income is recognized on an accrual basis when it can be reasonably estimated for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.

The Corporation may hold preferred equity securities that contain cumulative dividend provisions. Cumulative dividends are recorded as dividend income, if declared and deemed collectible, and any dividends in arrears are recognized into income and added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed.

Revenue Recognition - Fee Income - Consists of the revenue associated with the amortization of financing fees charged to the portfolio companies upon successful closing of financings, income associated with portfolio company monitoring fees, income associated with early repayment fees and income associated with portfolio company loan modification fees.

Realized Gain or Loss and Unrealized Appreciation or Depreciation of Investments - Amounts reported as realized gains and losses are measured by the difference between the proceeds from the sale or exchange and the cost basis of the investment without regard to unrealized gains or losses recorded in prior periods. The cost of securities that have, in management’s judgment, become worthless are written off and reported as realized losses when appropriate. Unrealized appreciation or depreciation reflects the difference between the fair value of the investments and the cost basis of the investments.

Original Issue Discount – Investments may include “original issue discount”, or OID. This occurs when the Corporation purchases a warrant and a note from a portfolio company simultaneously, which requires an allocation of a portion of the purchase price to the warrant and reduces the purchase price allocated to the note by an equal amount in the form of a note discount or OID. The note is reported net of the OID and the OID is accreted into interest income over the life of the loan.

22

Table of Contents

Net Assets per Share - Net assets per share are based on the number of shares of common stock outstanding. There are no common stock equivalents outstanding.

Supplemental Cash Flow Information - Net income taxes paid during the six months ended June 30, 2025 and 2024 were $17,343 and $110,374, respectively. Interest paid during the six months ended June 30, 2025 and 2024 was $54,401 and $784,090, respectively. The Corporation converted $1,223,945 and $795,134 of interest receivable into investments during the six months ended June 30, 2025 and 2024, respectively.

Accounting Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Stockholders’ Equity (Net Assets) - At June 30, 2025 and December 31, 2024, there were 500,000 shares of $10.00 par value preferred stock authorized and unissued.

On April 23, 2025, the Board approved a share repurchase plan which authorizes the Corporation to repurchase shares of Rand’s outstanding common stock with an aggregate cost of up to $1,500,000 at prices per share of common stock no greater than the then current net asset value. This share repurchase authorization is in effect through April 23, 2026, and replaces the share repurchase authorization that was previously approved by the Board in May 2024. No shares of Rand's common stock were repurchased by the Corporation during the six months ended June 30, 2025 or the six months ended June 30, 2024.

Income Taxes – The Corporation elected to be treated, for U.S. federal income tax purposes, as a RIC under Subchapter M of the Code. The Corporation must distribute substantially all of its investment company taxable income each tax year as dividends to its shareholders to maintain its RIC status. If the Corporation continues to qualify as a RIC and continues to satisfy the annual distribution requirement, the Corporation will not have to pay corporate level U.S. federal income taxes on any income that the Corporation distributes to its stockholders.

The Blocker Corps, which are consolidated under U.S. GAAP for financial reporting purposes, are subject to U.S. federal and state income taxes. Therefore, the Corporation accounts for income taxes pursuant to FASB ASC Topic 740, Income Taxes. Under FASB ASC Topic 740, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The Corporation records a valuation allowance against the deferred tax assets if and to the extent it is more likely than not that the Corporation will not recover the deferred tax assets. In evaluating the need for a valuation allowance, the Corporation weights all relevant positive and negative evidence, and considers among other factors, historical financial performance, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, and tax planning strategies. Changes in circumstances, including the Blocker Corps generating significant taxable income and tax planning strategies, could cause a change in judgment about the need for a valuation allowance of the related deferred tax assets. Any change in the valuation allowance will be included in income in the period of the change in estimate.

Accordingly, as of June 30, 2025 and December 31, 2024, the valuation allowance against the Corporation’s U.S. federal deferred tax assets was $363,471.

The Corporation reviews the tax positions it has taken to determine if they meet a “more likely than not threshold” for the benefit of the tax position to be recognized in the consolidated financial statements. A tax position that fails to meet the more likely than not recognition threshold will result in either a reduction of a current or deferred tax asset or receivable, or the recording of a current or deferred tax liability. There were no uncertain tax positions recorded at June 30, 2025 or December 31, 2024.

Depending on the level of taxable income earned in a tax year, the Corporation may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Corporation determines that its estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, the Corporation accrues excise tax, if any, on estimated excess taxable income as such taxable income is earned. The Corporation did not incur any federal excise tax expense during the six months ended June 30, 2025 or 2024.

Distributions from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-tax

23

Table of Contents

differences, including the offset of net operating losses against short-term gains and nondeductible meals and entertainment, have no impact on net assets.

The Corporation is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended December 31, 2021 through 2024. In general, the Corporation’s state income tax returns are open to audit under the statute of limitations for the years ended December 31, 2021 through 2024.

It is the Corporation’s policy to include interest and penalties related to income tax liabilities in income tax expense on the Consolidated Statement of Operations. There were no amounts recognized for the six months ended June 30, 2025. The Corporation incurred $720 in interest expense related to income tax liabilities during the six months ended June 30, 2024.

Concentration of Credit and Market Risk – The Corporation’s financial instruments potentially subject it to concentrations of credit risk. Cash is invested with banks in amounts which, at times, exceed insured limits. The Corporation does not anticipate non-performance by such banks.

The following are the concentrations of the top five portfolio company values compared to the fair value of the Corporation’s total investment portfolio:

 

 

 

June 30, 2025

 

Seybert’s Billiards Corporation (Seybert’s)

 

 

16

%

BMP Food Service Supply Holdco, LLC (FSS)

 

 

13

%

Inter-National Alloys LLC (EFINEA)

 

 

9

%

Caitec, Inc. (Caitec)

 

 

9

%

FCM Industries Holdco LLC (First Coast Mulch)

 

 

7

%

 

 

 

December 31, 2024

 

Tilson Technology Management, Inc. (Tilson)

 

 

16

%

Seybert’s

 

 

11

%

FSS

 

 

10

%

Mattison Avenue Holdings LLC (Mattison)

 

 

8

%

Caitec

 

 

6

%

 

Recently Issued or Adopted Accounting Standards – In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740) (“ASU 2023-09”). The amendments in ASU 2023-09 are intended to improve income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Corporation’s fiscal year beginning after December 15, 2024, however, these disclosures are not required for interim periods. The amendments are to be applied on a prospective basis, although retrospective adoption is permitted. The Corporation does not believe the adoption of ASU 2023-09 will have a material impact on its consolidated financial statements or disclosures.

 

Note 3. INVESTMENTS

The Corporation’s investments are carried at fair value in accordance with FASB Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures”, which defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements.

Loan investments are defined as traditional loan financings typically with no equity features or required equity co-investment. Debt investments are defined as debt financings that include one or more equity features such as conversion rights, stock purchase warrants, and/or stock purchase options. Equity investments are direct investments into a portfolio company and may include preferred stock, common stock, warrants and limited liability company membership interests.

The Corporation uses several approaches to determine the fair value of an investment. The main approaches are:

•
Loan and debt securities are generally valued at cost when representative of the fair value of the investment or sufficient assets or liquidation proceeds are expected to exist from a sale of a portfolio company at its estimated fair value. The valuation may also consider the carrying interest rate versus the related inherent portfolio risk of the investment. A loan or debt instrument may be reduced in value if it is judged to be of poor quality, collection is in doubt or insufficient liquidation proceeds exist.
•
Equity securities may be valued using the:

24

Table of Contents

▪
Cost approach - The cost approach uses estimates of the liquidation value of the portfolio company’ assets in relation to the cost of the respective security. This approach values the equity at the value remaining after the portfolio company pays off its debt and loan balances and its outstanding liabilities.
▪
Market approach - The market approach uses observable prices and other relevant information generated by similar market transactions. It may include both private and public M&A transactions where the traded price is a multiple of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) or another relevant operating metric. It may also include the market value of comparable public companies that are trading in an active market, or the use of market multiples derived from a set of comparables to assist in pricing the investment. Additionally, the Corporation adjusts valuations if a subsequent significant equity financing has occurred that includes a meaningful portion of the financing by a sophisticated, unrelated new investor.
▪
Income approach - The income approach employs valuation techniques to convert future benefits or costs, usually in the form of cash flows, into a present value amount. The measurement is based on value indicated by current market expectations about those future amounts.

ASC 820 classifies the inputs used to measure fair value into the following hierarchy:

Level 1: Quoted prices in active markets for identical assets or liabilities, used in the Corporation’s valuation at the measurement date. Under the valuation policy, the Corporation values unrestricted publicly traded companies, categorized as Level 1 investments, at the closing price on the last trading day of the reporting period.

Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3: Unobservable and significant inputs to determining the fair value.

Financial assets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Any changes in estimated fair value are recorded in the statement of operations.

At June 30, 2025 and December 31, 2024, all of the Corporation’s investments were Level 3 investments. There were no Level 1 or Level 2 investments at June 30, 2025 or December 31, 2024.

In the valuation process, the Corporation values restricted securities categorized as Level 3 investments, using information from these portfolio companies, which may include:

 

•
Audited and unaudited statements of operations, balance sheets and operating budgets;
•
Current and projected financial, operational and technological developments of the portfolio company;
•
Current and projected ability of the portfolio company to service its debt obligations;
•
The current capital structure of the business and the seniority of the various classes of equity if a deemed liquidation event were to occur;
•
Pending debt or capital restructuring of the portfolio company;
•
Current information regarding any offers to purchase the investment, or recent financing transactions;
•
Current ability of the portfolio company to raise additional financing if needed;
•
Changes in the economic environment which may have a material impact on the operating results of the portfolio company;
•
Internal circumstances and events that may have an impact (both positive and negative) on the operating performance of the portfolio company;
•
Qualitative assessment of key management;
•
Contractual rights, obligations or restrictions associated with the investment; and
•
Other factors deemed relevant to assess valuation.

The valuation may be reduced if a portfolio company’s performance and potential have deteriorated significantly. If the factors that led to a reduction in valuation are overcome, the valuation may be adjusted accordingly.

Equity Securities

Equity securities may include preferred stock, common stock, warrants and limited liability company membership interests.

25

Table of Contents

The significant unobservable inputs used in the fair value measurement of the Corporation’s equity investments are EBITDA and revenue multiples, where applicable, the financial and operational performance of the business, and the debt and senior equity preferences that may exist in a deemed liquidation event. Standard industry multiples may be used when available; however, the Corporation’s portfolio companies are typically privately-held, lower middle market companies and these industry standards may be adjusted to more closely match the specific financial and operational characteristics of the portfolio company. Due to the nature of certain investments, fair value measurements may be based on other criteria, which may include third party appraisals. Significant changes in any of these unobservable inputs may result in a significantly higher or lower fair value estimate.

Another key factor used in valuing equity investments is a significant recent arms-length equity transaction entered into by the portfolio company with a sophisticated, non-strategic, unrelated, new investor. The terms of these equity transactions may not be identical to the equity transactions between the portfolio company and the Corporation, and the impact of the difference in transaction terms on the market value of the portfolio company may be difficult or impossible to quantify.

When appropriate the Black-Scholes pricing model is used to estimate the fair value of warrants for accounting purposes. This model requires the use of highly subjective inputs including expected volatility and expected life, in addition to variables for the valuation of minority equity positions in small private and early stage companies. Significant changes in any of these unobservable inputs may result in a significantly higher or lower fair value estimate.

For investments made within the last year, the Corporation generally relies on the cost basis, which is deemed to represent the fair value, unless other fair value inputs are identified causing the Corporation to depart from this basis.

Loan and Debt Securities

The significant unobservable inputs used in the fair value measurement of the Corporation’s loan and debt securities are the financial and operational performance of the portfolio company, similar debt with similar terms with other portfolio companies, as well as the market acceptance for the portfolio company’s products or services. These inputs will likely provide an indicator as to the probability of principal recovery of the investment. The Corporation’s loan and debt investments are often junior secured or unsecured securities. Fair value may also be determined based on other criteria where appropriate. Significant changes to the unobservable inputs may result in a change in fair value. For recent investments, the Corporation generally relies on the cost basis, which is deemed to represent the fair value, unless other fair value inputs are identified causing the Corporation to depart from this basis.

The following table provides a summary of the significant unobservable inputs used to determine the fair value of the Corporation’s Level 3 portfolio investments as of June 30, 2025:

 



Investment Type

 

Market Approach EBITDA Multiple

 

 

Market Approach Liquidation Seniority

 

 

Market Approach
Revenue Multiple

 

 

Market Approach Transaction Pricing

 

 

Totals

 

Non-Control/Non-Affiliate Equity

 

$

—

 

 

$

—

 

 

$

700,000

 

 

$

100,038

 

 

$

800,038

 

Non-Control/Non-Affiliate Loan and Debt

 

 

4,799,278

 

 

 

2,047,463

 

 

 

—

 

 

 

—

 

 

 

6,846,741

 

Total Non-Control/Non-Affiliate

 

$

4,799,278

 

 

$

2,047,463

 

 

$

700,000

 

 

$

100,038

 

 

$

7,646,779

 

Affiliate Equity

 

$

6,650,000

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6,650,000

 

Affiliate Loan and Debt

 

 

34,317,475

 

 

 

—

 

 

 

—

 

 

 

1,750,000

 

 

 

36,067,475

 

Total Affiliate

 

$

40,967,475

 

 

$

—

 

 

$

—

 

 

$

1,750,000

 

 

$

42,717,475

 

Control Equity

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Control Loan and Debt

 

 

—

 

 

 

2,000,000

 

 

 

—

 

 

 

—

 

 

 

2,000,000

 

Total Control

 

$

—

 

 

$

2,000,000

 

 

$

—

 

 

$

—

 

 

$

2,000,000

 

Total Level 3 Investments

 

$

45,766,753

 

 

$

4,047,463

 

 

$

700,000

 

 

$

1,850,038

 

 

$

52,364,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Range

 

4X - 11X

 

 

1X

 

 

3.5X

 

 

Not Applicable

 

 

 

 

Unobservable Input

 

EBITDA Multiple

 

 

Asset Value

 

 

Revenue Multiple

 

 

Transaction Price

 

 

 

 

Weighted Average

 

5.7X

 

 

1X

 

 

3.5X

 

 

Not Applicable

 

 

 

 

 

26

Table of Contents

The following table provides a summary of the components of Level 1, 2 and 3 Assets Measured at Fair Value at June 30, 2025:

 

 

 

 

 

 

Fair Value Measurements at Reported Date Using

 




Description

 

June 30, 2025

 

 

Quoted Prices in Active Markets for Identical Assets
(Level 1)

 

 

Significant
Observable Inputs
(Level 2)

 

 

Other Significant
Unobservable
Inputs
(Level 3)

 

Loan investments

 

$

4,300,115

 

 

$

—

 

 

$

—

 

 

$

4,300,115

 

Debt investments

 

 

40,614,101

 

 

 

—

 

 

 

—

 

 

 

40,614,101

 

Equity investments

 

 

7,450,038

 

 

 

—

 

 

 

—

 

 

 

7,450,038

 

Total

 

$

52,364,254

 

 

$

—

 

 

$

—

 

 

$

52,364,254

 

 

The following table provides a summary of the components of Level 1, 2 and 3 Assets Measured at Fair Value at December 31, 2024:

 

 

 

 

 

Fair Value Measurements at Reported Date Using

 




Description

 

December 31, 2024

 

 

Quoted Prices in Active Markets for Identical Assets
(Level 1)

 

 

Significant
Observable Inputs
(Level 2)

 

 

Other Significant
Unobservable
Inputs
(Level 3)

 

Loan investments

 

$

15,037,873

 

 

$

—

 

 

$

—

 

 

$

15,037,873

 

Debt investments

 

 

38,043,721

 

 

 

—

 

 

 

—

 

 

 

38,043,721

 

Equity investments

 

 

17,736,447

 

 

 

—

 

 

 

—

 

 

 

17,736,447

 

Total

 

$

70,818,041

 

 

$

—

 

 

$

—

 

 

$

70,818,041

 

 

27

Table of Contents

 

The following table provides a summary of changes in Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) for the six months ended June 30, 2025:

 

 

Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)

 

Description

 

Loan Investments

 

 

Debt
Investments

 

 

Equity
Investments

 

 

Total

 

Ending balance December 31, 2024, of Level 3 Assets

 

$

15,037,873

 

 

$

38,043,721

 

 

$

17,736,447

 

 

$

70,818,041

 

Realized (losses) gains included in net change in net assets
 from operations:

 

 

 

 

 

 

 

 

 

 

 

 

GoNoodle, Inc. (GoNoodle)

 

 

—

 

 

 

—

 

 

 

(25

)

 

 

(25

)

Microcision, LLC (Microcision)

 

 

—

 

 

 

—

 

 

 

55,357

 

 

 

55,357

 

Pressure Pro, Inc. (Pressure Pro)

 

 

—

 

 

 

—

 

 

 

870,000

 

 

 

870,000

 

Total realized gains, net

 

 

—

 

 

 

—

 

 

 

925,332

 

 

 

925,332

 

Unrealized (losses) gains included in net change in net assets
 from operations:

 

 

 

 

 

 

 

 

 

 

 

 

BMP Food Service Supply Holdco, LLC (FSS)

 

 

—

 

 

 

—

 

 

 

(497,619

)

 

 

(497,619

)

Carolina Skiff LLC (Carolina Skiff)

 

 

—

 

 

 

—

 

 

 

(442,755

)

 

 

(442,755

)

FCM Industries Holdco LLC (First Coast Mulch)

 

 

—

 

 

 

484,837

 

 

 

—

 

 

 

484,837

 

Inter-National Electronic Alloys LLC (EFINEA)

 

 

—

 

 

 

—

 

 

 

488,235

 

 

 

488,235

 

ITA Acquisition, LLC (ITA)

 

 

(875,000

)

 

 

—

 

 

 

—

 

 

 

(875,000

)

Lumious

 

 

(189,944

)

 

 

—

 

 

 

—

 

 

 

(189,944

)

Mobile RN Holdings LLC (Mobile IV Nurses)

 

 

—

 

 

 

—

 

 

 

125,000

 

 

 

125,000

 

Mountain Regional Equipment Solutions (MRES)

 

 

—

 

 

 

(739,352

)

 

 

—

 

 

 

(739,352

)

Pressure Pro

 

 

—

 

 

 

—

 

 

 

(720,000

)

 

 

(720,000

)

Seybert’s Billiards Corporation (Seybert’s)

 

 

—

 

 

 

—

 

 

 

256,000

 

 

 

256,000

 

Tilson Technology Management, Inc. (Tilson)

 

 

—

 

 

 

—

 

 

 

(9,500,000

)

 

 

(9,500,000

)

Total unrealized losses, net

 

 

(1,064,944

)

 

 

(254,515

)

 

 

(10,291,139

)

 

 

(11,610,598

)

Purchases of securities/changes to securities/non-cash
conversions:

 

 

 

 

 

 

 

 

 

 

 

 

Autotality (formerly Filterworks Acquisition USA, LLC)

 

 

—

 

 

 

73,675

 

 

 

—

 

 

 

73,675

 

Caitec, Inc. (Caitec)

 

 

324,366

 

 

 

—

 

 

 

—

 

 

 

324,366

 

Carolina Skiff

 

 

—

 

 

 

—

 

 

 

34,755

 

 

 

34,755

 

First Coast Mulch

 

 

—

 

 

 

24,893

 

 

 

—

 

 

 

24,893

 

FSS

 

 

—

 

 

 

435,031

 

 

 

—

 

 

 

435,031

 

GoNoodle, Inc. (GoNoodle)

 

 

—

 

 

 

7,211

 

 

 

—

 

 

 

7,211

 

Highland All About People Holdings, Inc. (All About People)

 

 

—

 

 

 

64,176

 

 

 

—

 

 

 

64,176

 

ITA

 

 

375,000

 

 

 

—

 

 

 

—

 

 

 

375,000

 

Mobile IV Nurses

 

 

—

 

 

 

12,617

 

 

 

—

 

 

 

12,617

 

MRES

 

 

—

 

 

 

239,352

 

 

 

—

 

 

 

239,352

 

Pressure Pro

 

 

—

 

 

 

22,445

 

 

 

—

 

 

 

22,445

 

Seybert’s

 

 

—

 

 

 

64,183

 

 

 

—

 

 

 

64,183

 

Total purchases of securities/changes to securities/non-cash
   conversions

 

 

699,366

 

 

 

943,583

 

 

 

34,755

 

 

 

1,677,704

 

Repayments and sales of securities:

 

 

 

 

 

 

 

 

 

 

 

 

HDI Acquisition LLC (Hilton Displays)

 

 

—

 

 

 

(1,071,824

)

 

 

—

 

 

 

(1,071,824

)

Mattison Avenue Holdings LLC (Mattison)

 

 

(5,572,902

)

 

 

—

 

 

 

—

 

 

 

(5,572,902

)

Microcision

 

 

—

 

 

 

—

 

 

 

(55,357

)

 

 

(55,357

)

Pressure Pro

 

 

—

 

 

 

(1,725,150

)

 

 

(900,000

)

 

 

(2,625,150

)

Seybert's

 

 

—

 

 

 

(120,992

)

 

 

—

 

 

 

(120,992

)

Total repayments and sales of securities

 

 

(5,572,902

)

 

 

(2,917,966

)

 

 

(955,357

)

 

 

(9,446,225

)

Transfers within Level 3

 

 

(4,799,278

)

 

 

4,799,278

 

 

 

—

 

 

 

—

 

Ending balance June 30, 2025, of Level 3 Assets

 

$

4,300,115

 

 

$

40,614,101

 

 

$

7,450,038

 

 

$

52,364,254

 

Change in unrealized appreciation/depreciation included in earnings related to Level 3 investments still held at reporting date

 

 

 

 

 

 

 

 

 

 

$

(10,890,598

)

 

28

Table of Contents

The following table provides a summary of changes in Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) for the six months ended June 30, 2024:

 

 

 

Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)

 


Description

 

Loan Investments

 

 

Debt
Investments

 

 

Equity
Investments

 

 

Total

 

Ending balance December 31, 2023, of Level 3 Assets

 

$

12,417,977

 

 

$

36,861,525

 

 

$

20,536,560

 

 

$

69,816,062

 

Realized gains (losses) included in net change in net assets
 from operations:

 

 

 

 

 

 

 

 

 

 

 

 

Knoa Software, Inc. (Knoa)

 

 

—

 

 

 

—

 

 

 

(1,229,155

)

 

 

(1,229,155

)

Tilson Technology Management, Inc. (Tilson)

 

 

—

 

 

 

—

 

 

 

397,264

 

 

 

397,264

 

Total realized losses, net

 

 

—

 

 

 

—

 

 

 

(831,891

)

 

 

(831,891

)

Unrealized gains (losses) included in net change in net assets
 from operations:

 

 

 

 

 

 

 

 

 

 

 

 

Filterworks Acquisition USA, LLC (Filterworks)

 

 

—

 

 

 

—

 

 

 

(196,226

)

 

 

(196,226

)

Knoa

 

 

—

 

 

 

—

 

 

 

1,129,155

 

 

 

1,129,155

 

Pressure Pro, Inc. (Pressure Pro)

 

 

—

 

 

 

—

 

 

 

470,000

 

 

 

470,000

 

SciAps, Inc. (SciAps)

 

 

—

 

 

 

—

 

 

 

5,586,016

 

 

 

5,586,016

 

Tilson

 

 

—

 

 

 

—

 

 

 

1,761,000

 

 

 

1,761,000

 

Total unrealized gains, net

 

 

—

 

 

 

—

 

 

 

8,749,945

 

 

 

8,749,945

 

Purchases of securities/changes to securities/non-cash
conversions:

 

 

 

 

 

 

 

 

 

 

 

 

BMP Food Service Supply Holdco, LLC (FSS)

 

 

—

 

 

 

—

 

 

 

107,619

 

 

 

107,619

 

Caitec, Inc. (Caitec)

 

 

283,170

 

 

 

—

 

 

 

—

 

 

 

283,170

 

FCM Industries Holdco LLC (First Coast Mulch)

 

 

—

 

 

 

22,623

 

 

 

—

 

 

 

22,623

 

Filterworks

 

 

—

 

 

 

102,396

 

 

 

—

 

 

 

102,396

 

GoNoodle, Inc. (GoNoodle)

 

 

—

 

 

 

7,139

 

 

 

—

 

 

 

7,139

 

HDI Acquisition LLC (Hilton Displays)

 

 

—

 

 

 

10,646

 

 

 

—

 

 

 

10,646

 

Highland All About People Holdings, Inc. (All About People)

 

 

—

 

 

 

61,973

 

 

 

—

 

 

 

61,973

 

Inter-National Electronic Alloys LLC (INEA)

 

 

—

 

 

 

25,392

 

 

 

—

 

 

 

25,392

 

ITA Acquisition, LLC (ITA)

 

 

449,086

 

 

 

—

 

 

 

—

 

 

 

449,086

 

Mattison Avenue Holdings LLC (Mattison)

 

 

5,572,902

 

 

 

—

 

 

 

—

 

 

 

5,572,902

 

Mountain Regional Equipment Solutions (MRES)

 

 

—

 

 

 

2,946,000

 

 

 

264,545

 

 

 

3,210,545

 

Pressure Pro

 

 

—

 

 

 

37,637

 

 

 

—

 

 

 

37,637

 

Seybert’s Billiards Corporation (Seybert’s)

 

 

—

 

 

 

1,863,507

 

 

 

—

 

 

 

1,863,507

 

Total purchases of securities/changes to securities/non-cash
   conversions

 

 

6,305,158

 

 

 

5,077,313

 

 

 

372,164

 

 

 

11,754,635

 

Repayments and sales of securities:

 

 

 

 

 

 

 

 

 

 

 

 

FSS

 

 

—

 

 

 

(34,838

)

 

 

—

 

 

 

(34,838

)

Mattison

 

 

(1,894,470

)

 

 

—