Horizon Technology Finance Corporation (Ticker: HRZN) reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, total investment income decreased to $24.6 million from $29.1 million in the same period of 2023, reflecting a decline in interest income from debt investments, which fell to $22.8 million from $25.1 million. The company reported net investment income of $11.8 million, down from $17.4 million year-over-year. Notably, net realized losses on investments surged to $(33.9 million) compared to $(11.8 million) in the prior year, while net unrealized appreciation improved to $29.3 million from a depreciation of $(17.5 million).
For the nine months ended September 30, 2024, total investment income was $76.4 million, a decrease of 10.5% from $85.3 million in 2023. Net investment income for this period also declined to $37.4 million from $46.4 million. However, the net increase in net assets resulting from operations improved to $6.8 million, contrasting with a loss of $(6.5 million) in the previous year.
As of September 30, 2024, total investments at fair value were $684.0 million, down from $709.1 million at the end of 2023. The company’s cash position improved to $52.3 million from $46.6 million, while total assets decreased to $793.1 million from $802.4 million. Total liabilities also fell to $450.5 million from $478.4 million, leading to an increase in total net assets to $342.5 million from $324.0 million.
Strategically, Horizon Technology Finance has been active in managing its investment portfolio. The company has made significant investments in the life sciences sector, totaling $263.2 million in non-affiliate debt investments, with a fair value of $260.2 million. Additionally, the company has engaged in restructuring efforts, including the acquisition of assets from IMV, Inc. and the assumption of debt investments from New Aerofarms, Inc. during bankruptcy proceedings.
The company also extended its stock repurchase program, allowing for the repurchase of up to $5.0 million of its common stock, although no repurchases were made during the reported periods. Horizon Technology Finance continues to focus on maximizing returns through secured debt investments in development-stage companies across technology, life sciences, healthcare information, and sustainability sectors.
About Horizon Technology Finance Corp
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