Princeton Capital Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with a net loss of approximately $10.9 million, compared to a loss of $178,900 in the previous year. The company's total investment income fell to $1.38 million from $2.48 million in 2023, primarily due to a decrease in interest income from its portfolio investments. The weighted average yield on the company's portfolio investments increased slightly to 12.04% from 11.86% year-over-year, but this was not enough to offset the overall decline in revenue.
The company’s total assets decreased to $21.2 million from $32.3 million in 2023, largely driven by a reduction in the fair value of its investments, which dropped to $19.2 million from $29.7 million. The number of portfolio companies also decreased from five to four, reflecting a strategic shift towards conserving cash and focusing on current investments amid ongoing strategic alternatives discussions. The company has not entered into any agreements regarding strategic alternatives since initiating the review process in November 2019.
Operationally, Princeton Capital's investment activities were limited, with the company primarily investing in existing portfolio companies rather than pursuing new acquisitions. As of December 31, 2024, the company held investments in four portfolio companies, with a total cost of approximately $34.1 million and a fair value of $19.2 million. The company reported three loans on non-accrual status, indicating challenges in collecting interest payments from certain borrowers.
The company’s management fees decreased to $257,384 from $317,546 in 2023, reflecting a reduction in overall operating expenses, which totaled $1.52 million for the year. Despite these reductions, the company did not declare any dividends for the fiscal years 2024 and 2023, as it did not meet the qualifications to be taxed as a regulated investment company (RIC) and is currently taxed as a C corporation. The company anticipates that it will not meet RIC qualifications until certain strategic alternatives are achieved.
Looking ahead, Princeton Capital's management has indicated that it will continue to focus on conserving cash and managing its existing investments while exploring potential strategic alternatives. The company remains committed to maximizing total returns for its stockholders through careful management of its portfolio, although the outlook remains uncertain given the current market conditions and the company's financial performance.
About PRINCETON CAPITAL CORP
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