Firsthand Technology Value Fund Reports Decline in Financial Performance for Fiscal Year 2024

Firsthand Technology Value Fund, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, compared to the previous year. The company recorded total investment income of $109,836, a decrease from $122,631 in 2023. The net investment income, after taxes, was $1,875,422, up from $1,081,579 in the prior year. However, the fund experienced net realized losses of $11,686,668, leading to a net decrease in net assets resulting from operations of $199,692, a notable improvement from the $29,349,220 loss reported in 2023.

The fund's total assets decreased to approximately $1.8 million as of December 31, 2024, down from $8.8 million in 2023. This decline was primarily attributed to a significant drop in the market value of controlled investments, which fell from $8.3 million to $54,753. The company’s net asset value per share also decreased to $0.15 from $0.18 in the previous year. The total liabilities increased to $734,934, compared to $7.5 million in 2023, largely due to a reduction in payable to affiliates.

Strategically, Firsthand Technology Value Fund has focused on investing in technology and cleantech companies, with at least 80% of its assets typically allocated to these sectors. The fund's investment strategy includes a mix of private and micro-cap public companies, with a significant portion of its portfolio in convertible notes and preferred stocks. As of December 31, 2024, the fund held investments in several companies, including IntraOp Medical Corp. and Wrightspeed, Inc., although the valuations of these investments have fluctuated significantly.

Operationally, the fund's management has been proactive in addressing its financial challenges. The investment adviser, Firsthand Capital Management, Inc., has implemented a fee waiver agreement to reduce management fees, which has contributed to the improved net investment income. The company has also indicated plans to seek shareholder approval to withdraw its BDC election and pursue liquidation, reflecting a strategic pivot in response to ongoing market conditions and performance challenges.

Looking ahead, the fund's management remains cautious, emphasizing the need for effective capital management and potential future equity offerings to support growth. The company is also facing legal challenges, including a class action lawsuit alleging false or misleading statements regarding asset valuations, which could impact its financial condition. The outlook for the fund will depend on its ability to navigate these challenges while seeking to enhance shareholder value through strategic investments and operational efficiencies.