Quarterly report [Sections 13 or 15(d)]

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) - USD ($)
Mar. 31, 2026
Dec. 31, 2025
ASSETS    
Total Investments at Fair Value $ 51,543,064 [1],[2] $ 48,480,496 [3]
Cash and cash equivalents 330,550 4,208,948
Interest receivable 244,962 168,039
Prepaid income taxes 322,186 283,581
Other assets 73,864 54,248
Total assets 52,514,626 53,195,312
Liabilities:    
Due to investment adviser (see Note 8) $ 532,591 $ 519,287
Other Liability, Related Party [Extensible Enumeration] us-gaap:RelatedPartyMember us-gaap:RelatedPartyMember
Accounts payable and accrued expenses $ 99,873 $ 101,975
Line of credit (see Note 5) 500,000 0
Deferred revenue 427,307 390,597
Total liabilities 1,559,771 1,011,859
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; shares outstanding: 2,969,814 at 3/31/26 and 12/31/25 (see Note 1) 303,771 303,771
Capital in excess of par value 64,063,157 64,063,157
Treasury stock, at cost: 67,895 shares at 3/31/26 and 12/31/25 (1,566,605) (1,566,605)
Total distributable earnings (11,845,468) (10,616,870)
Total stockholders' equity (net assets) (per share - 3/31/26: $17.16; 12/31/25: $17.57) 50,954,855 52,183,453
Total liabilities and stockholders' equity (net assets) 52,514,626 53,195,312
Control Investments    
ASSETS    
Total Investments at Fair Value 1,400,000 [1],[2],[4] 1,400,000 [3],[5],[6]
Affiliate Investments    
ASSETS    
Total Investments at Fair Value 39,759,324 [1],[2],[7] 36,775,685 [3],[5],[8]
Non-Control/Non-Affiliate Investments    
ASSETS    
Total Investments at Fair Value $ 10,383,740 [1],[2],[9] $ 10,304,811 [3],[5],[10]
[1] 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).
[2] 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 March 31, 2026, 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).
[3] 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, 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).
[4] 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.
[5] 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).
[6] 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.
[7] 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 are owned by the Corporation.
[8] 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 are owned by the Corporation.
[9] Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.
[10] Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments.