Company Quick10K Filing
Rand Capital
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-09
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-06
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-03-07
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-07
10-Q 2018-03-31 Filed 2018-05-02
10-K 2017-12-31 Filed 2018-03-08
10-Q 2017-09-30 Filed 2017-11-06
10-Q 2017-06-30 Filed 2017-08-07
10-Q 2017-03-31 Filed 2017-04-27
10-K 2016-12-31 Filed 2017-03-08
10-Q 2016-09-30 Filed 2016-11-02
10-Q 2016-06-30 Filed 2016-08-02
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-03-10
10-Q 2015-09-30 Filed 2015-11-03
10-Q 2015-06-30 Filed 2015-08-04
10-Q 2015-03-31 Filed 2015-05-05
10-K 2014-12-31 Filed 2015-03-13
10-Q 2014-09-30 Filed 2014-11-04
10-Q 2014-06-30 Filed 2014-08-01
10-Q 2014-03-31 Filed 2014-05-02
10-K 2013-12-31 Filed 2014-03-18
10-Q 2013-09-30 Filed 2013-11-01
10-Q 2013-06-30 Filed 2013-08-01
10-Q 2013-03-31 Filed 2013-05-07
10-K 2012-12-31 Filed 2013-03-22
10-Q 2012-06-30 Filed 2012-08-03
10-Q 2012-03-31 Filed 2012-05-02
10-K 2011-12-31 Filed 2012-03-15
10-Q 2011-09-30 Filed 2011-11-07
10-Q 2011-06-30 Filed 2011-08-08
10-Q 2011-03-31 Filed 2011-05-09
10-K 2010-12-31 Filed 2011-03-14
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-10
10-Q 2010-03-31 Filed 2010-05-13
10-K 2009-12-31 Filed 2010-03-18
8-K 2020-06-15
8-K 2020-05-18
8-K 2020-05-11
8-K 2020-04-30
8-K 2020-04-22
8-K 2020-04-03
8-K 2020-03-03
8-K 2019-12-30
8-K 2019-11-07
8-K 2019-10-16
8-K 2019-05-16
8-K 2019-01-24
8-K 2019-01-24
8-K 2018-04-17

RAND 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements and Supplementary Data
Note 1. Organization
Note 2. Summary of Significant Accounting Policies
Note 3. Investments
Note 4. Other Assets
Note 5. Commitments and Contingencies
Note 6. Sba Debentures
Note 7. Changes in Stockholders' Equity (Net Assets)
Note 8. Related Party Transactions
Note 9. Financial Highlights
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II.
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex31-1.htm
EX-31.2 ex31-2.htm
EX-32.1 ex32-1.htm

Rand Capital Earnings 2020-03-31

Balance SheetIncome StatementCash Flow

10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

For the quarterly period ended March 31, 2020

 

[  ] 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   (IRS Employer
of Incorporation or Organization)   Identification No.)
     
2200 Rand Building, 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 May 8, 2020, there were 14,655,321 shares of the registrant’s common stock outstanding.

 

 

 

 
 

 

RAND CAPITAL CORPORATION

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 March 31, 2020 (Unaudited) and December 31, 2019 1
     
  Consolidated Statements of Operations for the Three Months Ended March 31, 2020 and 2019 (Unaudited) 2
     
  Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2020 and 2019 (Unaudited) 3
     
  Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019 (Unaudited) 4
     
  Consolidated Schedule of Portfolio Investments as of March 31, 2020 (Unaudited) 5
     
  Consolidated Schedule of Portfolio Investments as of December 31, 2019 13
     
  Notes to the Consolidated Financial Statements (Unaudited) 9
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 37
     
Item 3. Quantitative and Qualitative Disclosures about Market Risk 45
     
Item 4. Controls and Procedures 45
     
  PART II. – OTHER INFORMATION  
     
Item 1. Legal Proceedings 46
     
Item 1A. Risk Factors 46
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47
     
Item 3. Defaults upon Senior Securities 47
     
Item 4. Mine Safety Disclosures 47
     
Item 5. Other Information 47
     
Item 6. Exhibits 48

 

 
 

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements and Supplementary Data

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

  

March 31, 2020

(Unaudited)

   December 31, 2019 
ASSETS          
Investments at fair value:          
Affiliate investments (cost of $20,562,778 and $19,035,446, respectively)  $13,168,576   $12,151,435 
Non- Control/Non-Affiliate investments (cost of $23,738,493 and $25,584,017, respectively)   22,805,701    24,869,357 
Total investments, at fair value (cost of $44,301,271 and $44,619,463, respectively)   35,974,277    37,020,792 
Cash and cash equivalents   29,100,903    25,815,720 
Interest receivable (net of allowance of $166,413)   138,589    142,265 
Deferred tax asset   -    1,204,198 
Prepaid income taxes   39,716    343,096 
Other assets   129,271    265,378 
           
Total assets  $65,382,756   $64,791,449 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (NET ASSETS)          
Liabilities:          
Debentures guaranteed by the SBA (net of debt issuance costs)  $10,796,332   $10,786,913 
Accounts payable and accrued expenses   266,316    258,437 
Deferred tax payable   227,622    - 
Profit sharing and bonus payable   -    80,000 
Deferred revenue   33,833    37,583 
Total liabilities   11,324,103    11,162,933 
Commitments and contingencies (See Note 5)          
           
Stockholders’ equity (net assets):          
Common stock, $0.10 par; shares authorized 100,000,000; shares issued 15,196,367; shares outstanding 14,655,321   1,519,637    1,519,637 
Capital in excess of par value   34,142,455    34,142,455 
Accumulated net investment loss   (1,212,828)   (1,751,249)
Undistributed net realized gain on investments   29,476,732    27,083,281 
Net unrealized depreciation on investments   (8,398,238)   (5,896,503)
Treasury stock, at cost: 541,046 shares   (1,469,105)   (1,469,105)
Total stockholders’ equity (net assets) (per share – 3/31/20: $3.69, 12/31/19: $3.66)   54,058,653    53,628,516 
Total liabilities and stockholders’ equity (net assets)  $65,382,756   $64,791,449 

 

See accompanying notes

 

1
 

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

  

Three months ended
March 31, 2020

  

Three months ended
March 31, 2019

 
Investment income:          
Interest from portfolio companies:          
Affiliate investments  $138,846   $208,715 
Non-Control/Non-Affiliate investments   396,855    197,250 
Total interest from portfolio companies   535,701    405,965 
           
Interest from other investments:          
Non-Control/Non-Affiliate investments   83,250    17,811 
Total interest from other investments   83,250    17,811 
           
Dividend and other investment income:          
Affiliate investments   13,125    34,625 
Total dividend and other investment income   13,125    34,625 
           
Fee income:          
Affiliate investments   1,250    4,247 
Non-Control/Non-Affiliate investments   2,500    256,722 
Total fee income   3,750    260,969 
Total investment income   635,826    719,370 
Expenses:          
Base management fee (see Note 8)   140,377    - 
Interest on SBA obligations   104,190    99,124 
Professional fees   179,119    226,655 
Stockholders and office operating   51,545    61,255 
Directors’ fees   28,375    28,624 
Insurance   10,668    9,601 
Corporate development   1,874    18,460 
Other operating   358    1,584 
Salaries   -    181,500 
Employee benefits   -    62,932 
Total expenses   516,506    689,735 
Net investment gain before income taxes   119,320    29,635 
Income tax (benefit) expense   (419,101)   6,868 
Net investment gain   538,421    22,767 
           
Net realized gain on sales and dispositions of investments:          
Control investments   -    40,500 
Non-Control/Non-Affiliate investments   2,393,451    - 
Income tax expense   -    9,369 
Net realized gain on sales and dispositions of investments   2,393,451    31,131 
Net change in unrealized depreciation on investments:          
Affiliate investments   (510,191)   1,043,595 
Non-Control/Non-Affiliate investments   (218,132)   (521,300)
           
Change in unrealized depreciation before income taxes   (728,323)   522,296 
Deferred income tax expense   1,773,412    120,779 
Net change in unrealized depreciation on investments   (2,501,735)   401,517 
           
Net realized and unrealized (loss) gain on investments   (108,284)   432,648 
Net increase in net assets from operations  $430,137   $455,415 
Weighted average shares outstanding   14,655,321    6,321,988 
Basic and diluted net increase in net assets from operations per share  $0.03   $0.07 

 

See accompanying notes

 

2
 

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

 

  

Three months ended

March 31, 2020

  

Three months ended

March 31, 2019

 
         
Net assets at beginning of period  $53,628,516   $31,524,187 
           
Net investment gain   538,421    22,767 
Net realized gain on sales and dispositions of investments   2,393,451    31,131 
Net change in unrealized depreciation on investments   (2,501,735)   401,517 
Net increase in net assets from operations   430,137    455,415 
Net assets at end of period  $54,058,653   $31,979,602 
Accumulated net investment loss  $(1,212,828)  $(1,642,785)

 

See accompanying notes

 

3
 

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

  

Three months ended

March 31, 2020

  

Three months

ended

March 31, 2019

 
Cash flows from operating activities:          
Net increase in net assets from operations  $430,137   $455,415 
Adjustments to reconcile net increase in net assets to net cash provided by operating activities:          
Investments in portfolio companies   (1,740,188)   (650,012)
Proceeds from sale of portfolio investments   4,538,947    - 
Proceeds from loan repayments   -    3,500,000 
Net realized gain on portfolio investments   (2,393,451)   (40,500)
Change in unrealized depreciation on investments before income taxes   728,323    (522,296)
Deferred income tax expense   1,431,820    99,737 
Depreciation and amortization   9,418    8,842 
Original issue discount amortization   (15,691)   (10,191)
Non-cash conversion of debenture interest   (71,425)   (101,398)
Changes in operating assets and liabilities:          
Decrease in interest receivable   3,676    8,318 
Decrease (increase) in other assets   136,104    (326,882)
Decrease in prepaid income taxes   303,380    292,588 
Increase (decrease) in accounts payable and accrued expenses   7,879    (91,676)
Decrease in profit sharing and bonus payable   (80,000)   (125,000)
Decrease in deferred revenue   (3,746)   (31,469)
Total adjustments   2,855,046    2,010,061 
Net cash provided by operating activities   3,285,183    2,465,476 
           
Cash flows from financing activities:          
Proceeds from SBA debentures   -    2,250,000 
Origination costs to SBA   -    (54,563)
Net cash provided by financing activities   -    2,195,437 
           
Net increase in cash and cash equivalents   3,285,183    4,660,913 
Cash and cash equivalents:          
Beginning of period   25,815,720    4,033,792 
End of period  $29,100,903   $8,694,705 

 

See accompanying notes

 

4
 

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

March 31, 2020

(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 – 42.1% of net assets: (j)                          
                           
ACV Auctions, Inc. (e)(g)  1,181,160 Series A Preferred.  8/12/16   <1%  $163,000   $6,531,815    12.1%
Buffalo, NY. Live mobile wholesale auctions for new and used car dealers. (Software)                          
www.acvauctions.com                          
                           
Advantage 24/7 LLC (g)  $140,000 Term Note at 7%   12/30/10   0%           0.1%
Williamsville, NY. Marketing program for wine and  due January 1, 2022           65,000    65,000      
spirits dealers. (Marketing Company)                         
www.advantage24-7.com                          
                           
AIKG LLC (Andretti) (e)(l)  $4,250,000 Term Notes at   11/8/19   0%           8.2%
Marietta, GA. Entertainment company engaged in  12% (+4% PIK) due December 28,                       
indoor karting, games and food. (Entertainment)   2023.           4,442,595     4,442,595      
www.andrettikarting.com                          
                           
Apollo Investment Corporation   35,000 shares  3/16/20   <1%   364,084    253,633    0.5%
NASDAQ: AINV (n)                          
New York, NY.                          
                           
Ares Capital Corporation NASDAQ: ARCC (n)  27,000 shares  3/16/20   <1%   343,460    294,390    0.5%
New York, NY.                          
                           
Centivo Corporation (e)(g)  190,967 Series A-1 Preferred.  7/5/17   <1%   200,000    200,000    0.6%
New York, NY. Tech-enabled health solutions  337,808 Series A-2 Preferred.           101,342    101,342      
company that helps self-insured employers   Total Centivo           301,342    301,342      
and employees save money and have a better experience their. (Health Care)                          
www.centivo.com                          
                           

Empire Genomics, LLC (g)

  $1,209,014 Senior Secured  6/13/14   0%           1.1%
Buffalo, NY. Molecular diagnostics company that  Convertible Term Notes at 10%                       
offers a comprehensive menu of assay services for   due December 31, 2020.           1,308,675    157,654      
diagnosing and guiding patient therapeutic treatments.  $444,915 Promissory Note at 9%                       
(Health Care)  (5% deferred) due December 31,                     
www.empiregenomics.com   2020.           444,915    444,915      
   Total Empire           1,753,590    602,569      
                           

First Wave Technologies, Inc. (e)(g)

Batavia, NY. Sells First Crush automated pill crusher that crushes and grinds pills for nursing homes and medical institutions. (Health Care)

  670,443.2 Class A Common.  4/19/12   4%   661,563    33,000    0.1%
www.firstwavetechnologies.com                          
                           

FS KKR Capital Corp. NYSE: FSK (n)

Philadelphia, PA.

  100,000 shares  3/16/20   <1%   338,980    312,333    0.6%
                           

GiveGab, Inc. (e)(g)

  5,084,329 Series Seed Preferred.  3/13/13   4%   616,221    616,221    1.1%
Ithaca, NY. Nonprofit giving platform that provides an easy and effective way for fundraising professionals to raise money online. (Software)
                       
www.givegab.com                          
                           
Golub Capital BDC, Inc. NASDAQ: GBDC (n)  25,000 shares  3/16/20   <1%   346,597    316,000    0.6%
New York, NY.                          
                           
GoNoodle, Inc. (g)(l)
  $1,500,000 Secured Note at 12%  2/6/15   <1%           2.8%
Nashville, TN. Student engagement education  (1% PIK) due September 30, 2024.           1,506,21    1,506,214      
software providing core aligned physical activity   Warrant for 47,324 Series C                     
breaks. (Software)  Preferred.           25    25      
www.gonoodle.com  Warrant for 21,948 Series D                     
   Preferred.           38    38      
  Total GoNoodle           1,506,277    1,506,277      

 

5
 

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

March 31, 2020 (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 

HDI Acquisition LLC (Hilton Displays) (l)

  $1,245,119 Term Loan at 12% (+2%  11/8/19   0%           2.3%
Greenville, NC. HDI is engaged in manufacturing,  PIK) due June 20, 2023.           1,255,856    1,255,856      
installation and maintenance of signage and brands.                          
(Manufacturing)                          
www.hiltondisplays.com                          
                           

Lumious (Tech 2000, Inc.) (g)

  $850,000 Replacement Term Note at  11/16/18   0%           1.6%
Herndon, VA. Develops and delivers IT training.  14% due November 15, 2021.           860,777    860,777      
(Software) www.t2000inc.com                          
                           

Mattison Avenue Holdings LLC (e)(l)

  $1,031,406 Second Amended, Restated   11/8/19   0%           1.9%
Dallas, TX. Provider of upscale salon spaces for  and Consolidated Promissory Note at                       
lease. (Professional Services)  14% (2% PIK) due June 9, 2022.           1,041,919    1,041,919      
www.mattisonsalonsuites.com                          
                           

Mercantile Adjustment Bureau, LLC (g)

  $1,199,039 Subordinated Secured Note at  10/22/12   4%           0.9%
Williamsville, NY. Full service accounts receivable  13% (3% for the calendar year 2020) due                        
management and collections company. (Contact Center)  January 31, 2022.           1,199,040    500,000      
www.mercantilesolutions.com  (e) $150,000 Subordinated Debenture                       
   at 8% due January 31, 2022.                     
   Warrant for 3.29% Membership Interests.           150,000    -      
   Option for 1.5% Membership Interests.           97,625     -      
  

Total Mercantile

           1,446,665    500,000      
                           

Open Exchange, Inc. (g)

  397,899 Series C Preferred  11/13/13   4%   1,193,697    543,283    2.0%
(Formerly KnowledgeVision Systems, Inc.)  397,899 Common.           208,243    108,656      
Lincoln, MA. Online presentation and training   $450,000 Replacement Term Note at 9%                      
software. (Software)  due September 30, 2022.           450,000    450,000      
www.openexc.com  Total Open Exchange           1,851,940    1,101,939      
                           

Owl Rock Capital Corporation NYSE: ORRC (n)

New York, NY.

  30,000 shares  3/16/20   <1%   347,067    345,700    0.6%
                           

PostProcess Technologies, Inc. (e)(g)

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

  360,002 Series A1 Preferred.  7/25/16   <1%   348,875    471,603    0.9%
                           

Rheonix, Inc. (e)

  9,676 Common.  10/29/09   4%   -    -    1.3%
Ithaca, NY. Developer of fully automated microfluidic   (g) 1,839,422 Series A Preferred.           2,099,999    -      
based molecular assay and diagnostic testing devices.   (g) 50,593 Common.           -    -      
(Health Care) www.rheonix.com  (g) 589,420 Series B Preferred.           702,732    702,732      
   Total Rheonix           2,802,731    702,732      
                           

SocialFlow, Inc. (e)(g)

  1,049,538 Series B Preferred.  4/5/13   4%   500,000    209,908    1.4%
New York, NY. Provides instant analysis of social  1,204,819 Series B-1 Preferred.           750,000    324,761      
networks using a proprietary, predictive analytic   717,772 Series C Preferred.           500,000    215,332      
algorithm to optimize advertising and publishing.   Total Social Flow           1,750,000    750,000      
(Software) www.socialflow.com                       
                           

Somerset Gas Transmission Company, LLC (e)(m)

Columbus, OH. Natural gas transportation.

(Oil and Gas) www.somersetgas.com

  26.5337 Units.  7/10/02   3%   719,097    500,000    0.9%

 

6
 

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

March 31, 2020 (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  
Other Non-Control/Non-Affiliate Investments:                                
DataView, LLC (e)   Membership Interest.   10/1/98     5 %     310,357       -       0.0 %
(Software)                                        
                                         

UStec/Wi3 (e)

  Common stock.   12/17/98     <1 %     100,500       -       0.0 %

(Manufacturing)

 Subtotal Non-Control/Non-Affiliate Investments

                  $ 23,738,493     $ 22,805,701          
                                         

Affiliate Investments – 24.4% of net assets (k)

BeetNPath, LLC (Grainful) (e)(g)(m)

Ithaca, NY. Frozen entrées made from 100% whole grain steel cut oats under  

                                       
  1,119,024 Series A-2 Preferred Membership Units.   10/20/14     9 %   $ 359,000     $ -       0.0 %
  1,032,918 Series B Preferred Membership Units.                 261,277       -          
  $262,626.64 Convertible Secured Notes at 8% due December 21, 2019.                 262,627       -          
  Total BeetNPath                 882,904       -          
                                         

Carolina Skiff LLC (e)(g)(m)

Waycross, GA. Manufacturer of ocean fishing and pleasure boats. (Manufacturing)

www.carolinaskiff.com

  6.0825% Class A Common Membership Interest.   1/30/04     7 %     15,000       1,750,000       3.2 %
                                         

ClearView Social, Inc. (e)(g)

Buffalo, NY. Social media publishing tool for law, CPA and professional firms. (Software)

www.clearviewsocial.com

  312,500 Series Seed Plus Preferred.   1/4/16     6 %     200,000       200,000       0.4 %
                                         

Filterworks Acquisition USA, LLC (l)(m)

  $2,283,702 Term Note at 12% (+2%   11/8/19     9 %                     5.3 %
Deerfield Beach, FL. Provides spray booth   PIK) due December 4, 2023.                 2,314,294       2,314,294          
equipment, frame repair machines and paint booth   562.5 Class A Units                 562,500       562,500          
filter services for collision shops. (Automotive)   Total Filterworks                 2,876,794       2,876,794          
www.filterworksusa.com                                        
                                   

Genicon, Inc. (e)(g)(l)
Winter Park, FL. Designs, produces and distributes patented surgical instrumentation. (Health Care)

www.geniconendo.com 

  1,586,902 Series B Preferred.   4/10/15     6 %     1,000,000       -       0.5 %
  $3,250,000 Promissory Notes at 10% due June 12, 2022, (10% PIK).                 3,737,764       -          
  $250,000 Promissory Note at 10% due June 12, 2021 (10% PIK).                 262,184       250,000          
  Warrants for Common.                 120,000       -          
  Total Genicon                 5,119,948       250,000          
                                         

Knoa Software, Inc. (e)(g)
New York, NY. End user experience management and performance (EMP) solutions utilizing enterprise applications. (Software)

www.knoa.com 

  973,533 Series A-1 Convertible Preferred.   11/20/12     7 %     750,000       750,000       2.3 %
  1,876,922 Series B Preferred.                 479,155       479,155          
  Total Knoa                 1,229,155       1,229,155          
                                         

Mezmeriz, Inc. (e)(g)

Ithaca, NY. Technology company developing novel reality capture tools for 3D mapping, reality modeling, object tracking and classification. (Electronics Developer)

www.mezmeriz.com

  1,554,565 Series Seed Preferred.   1/9/08     12 %     742,850       -       0.0 %
                                         

Microcision LLC (g)

 

  $1,500,000 Subordinated   9/24/09     5 %                     2.8 %
  Promissory Note at 11% due January 10, 2025.                 1,395,500       1,395,500          
  Membership Interest Purchase Warrant for 5%.                 110,000       110,000          
  Total Microcision                 1,505,500       1,505,500          

 

7
 

 

RAND CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED SCHEDULE OF PORTFOLIO INVESTMENTS

March 31, 2020 (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  

New Monarch Machine Tool, Inc. (e)(g)

Cortland, NY. Manufactures and services vertical/horizontal machining centers. (Manufacturing)

www.monarchmt.com

  22.84 Common.   9/24/03     15 %     22,841       22,841       0.0 %
                                         

OnCore Golf Technology, Inc. (e)(g)

Buffalo, NY. Patented and proprietary golf balls utilizing technology and innovation. (Consumer Product)

www.oncoregolf.com

  300,483 Preferred AA.   12/31/14     8 %     752,712       300,000       0.6 %
                                         
SciAps, Inc. (e)(g)   187,500 Series A Preferred.   7/12/13     6 %     1,500,000       -       2.0 %
Woburn, MA. Instrumentation company   274,299 Series A1 Convertible Preferred.                 504,710       -          
producingportable analytical devices using XRF,   117,371 Series B Convertible Preferred.                 250,000       250,000          
LIBS and RAMAN spectroscopy to identify   113,636 Series C Convertible Preferred.                 175,000       175,000          
compounds, minerals, and elements.   369,698 Series C1 Convertible Preferred.                 399,274       399,274          
(Manufacturing)   147,059 Series D Convertible Preferred.                 250,000       250,000          
www.sciaps.com    Total SciAps                 3,078,984       1,074,274          
                                         
Teleservices Solutions Holdings, LLC (e)(g)(l)   250,000 Class B Preferred Units.   5/30/14     6 %     250,000       -       0.0 %
Montvale, NJ. Customer contact center   1,000,000 Class C Preferred Units.                 1,190,680       -          
specializing in customer acquisition and retention   80,000 Class D Preferred Units.                 91,200       -          
for selected industries. (Contact Center)   104,198 Class E Preferred Units.                 -       -          
www.ipacesetters.com    PIK dividend for Series C and D at 12%                                    
    and 14%, respectively.                 104,198       -          
    Total Teleservices                 1,636,078       -          
                                     
Tilson Technology Management, Inc. (g)   120,000 Series B Preferred.   1/20/15     9 %     600,000       1,950,000       7.3 %
 Portland, ME. Provides network deployment   21,391 Series C Preferred.                 200,000       347,604          
 construction and information system services   70,176 Series D Preferred.                 800,000       1,140,360          
 management for cellular, fiber optic and wireless   15,385 Series E Preferred.                 500,012       500,012          
 systems providers. Its affiliated entity, SQF, LLC is   211,567 SQF Hold Co. Common.                 -       22,036          
 a CLEC supporting small cell 5G deployment.   Total Tilson                 2,100,012       3,960,012          

(Professional Services)

www.tilsontech.com

                                       
                                         
Other Affiliate Investments:                                        
G-TEC Natural Gas Systems (e)(m)   Membership Interest   8/31/99     17 %     400,000       -       0.0 %
(Manufacturing)                                        
                                         
Subtotal Affiliate Investments                   $ 20,562,778     $ 13,168,576          
Total investments – 66.5%