Horizon Technology Finance Corporation (HRZN) Bundle
An Overview of Horizon Technology Finance Corporation (HRZN)
General Summary of Horizon Technology Finance Corporation (HRZN)
Horizon Technology Finance Corporation (HRZN) was founded in 2010 and is primarily engaged in providing debt financing to venture capital-backed companies in the technology, life sciences, and sustainable energy sectors. The company specializes in offering loans and other financial products tailored to the unique needs of development-stage companies. As of 2024, the company operates with a focus on fostering growth in innovative sectors, leveraging its deep industry expertise to support its portfolio companies.
As of 2024, HRZN's total sales revenue is reported at approximately $76.37 million for the nine months ended September 30, 2024, reflecting its commitment to enhancing financial support for its clients while maintaining a robust portfolio of investments.
Company's Financial Performance in the Latest Financial Reports
In the third quarter of 2024, Horizon Technology Finance Corporation reported a net investment income of $11.84 million, compared to $17.35 million in the same quarter of 2023. For the nine months ended September 30, 2024, the company generated a total investment income of $76.37 million, down from $85.29 million in the previous year. The decline in investment income is attributed to lower interest income from non-affiliate investments, which amounted to $71.55 million for the nine months ended September 30, 2024, compared to $75.70 million for the same period in 2023.
HRZN reported total expenses of $37.90 million for the nine months ended September 30, 2024, down from $38.31 million in 2023. The company's net realized loss on investments for the nine months was approximately $31.42 million, contrasting with a loss of $28.51 million in the prior year. The net asset value per common share as of September 30, 2024, stood at $9.06, a decrease from $9.71 at the beginning of the period.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Investment Income | $76.37 million | $85.29 million |
| Net Investment Income | $37.36 million | $46.44 million |
| Total Expenses | $37.90 million | $38.31 million |
| Net Realized Loss | $31.42 million | $28.51 million |
| Net Asset Value per Share | $9.06 | $9.71 |
Introduction to Company as a Leader in the Industry
Horizon Technology Finance Corporation is recognized as a leader in the technology finance sector, providing critical capital to innovative companies that drive economic growth and job creation. The company maintains a diverse portfolio of investments, primarily in high-growth sectors such as technology and life sciences, which positions it favorably against industry peers. With total assets amounting to approximately $793.07 million as of September 30, 2024, HRZN's strategic focus on venture capital-backed firms continues to enhance its competitive edge.
As of the latest report, HRZN has successfully funded various debt investments, including a $2.5 million investment in Standvast Holdings, LLC, and a $0.6 million investment in Swift Health Systems, Inc. This proactive approach illustrates the company's commitment to supporting its portfolio companies and expanding its market presence.
Mission Statement of Horizon Technology Finance Corporation (HRZN)
Company's Mission Statement Overview
The mission statement of Horizon Technology Finance Corporation (HRZN) emphasizes its commitment to providing innovative financial solutions to technology and life sciences companies. This mission is significant as it guides HRZN's long-term goals, ensuring alignment with its strategic objectives and reinforcing its dedication to supporting growth in these dynamic sectors.
Core Component 1: Innovation
HRZN prioritizes innovation in its mission statement, reflecting its focus on financing cutting-edge technologies and life sciences initiatives. The company aims to empower its portfolio companies by providing not just capital but also strategic guidance. For instance, in the nine months ended September 30, 2024, HRZN made approximately $121.2 million in new investments, showcasing its proactive approach to fostering innovation in its sectors of focus.
Core Component 2: Commitment to Quality
Quality is a cornerstone of HRZN’s mission. The company is dedicated to delivering high-quality financial products and services tailored to the unique needs of technology and life sciences firms. As of September 30, 2024, HRZN reported net investment income of $37.4 million, demonstrating its ability to maintain robust financial performance while adhering to quality standards.
Core Component 3: Customer-Centric Approach
HRZN emphasizes a customer-centric approach in its mission statement, aiming to build long-term relationships with its clients. The firm’s strategy includes understanding the specific challenges and opportunities faced by its portfolio companies. For instance, HRZN's investment portfolio consisted of 29 active companies across various sectors as of September 30, 2024, indicating a diverse approach to meeting customer needs.
| Financial Metric | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Net Investment Income | $37.4 million | $46.4 million |
| New Investments | $121.2 million | $154.5 million |
| Total Net Assets | $342.5 million | $346.6 million |
| Number of Active Portfolio Companies | 29 | 27 |
In conclusion, HRZN's mission statement is not only a reflection of its objectives but also a commitment to innovation, quality, and customer-centricity, guiding its strategic initiatives and investments in the technology and life sciences sectors.
Vision Statement of Horizon Technology Finance Corporation (HRZN)
Vision Statement of Horizon Technology Finance Corporation
The vision statement of Horizon Technology Finance Corporation (HRZN) as of 2024 emphasizes its commitment to being a premier provider of capital to the technology and life sciences sectors. This vision is rooted in the company's dedication to support innovation and growth in dynamic industries.
Commitment to InnovationHorizon Technology Finance Corporation aims to be at the forefront of innovation by providing flexible financing solutions tailored to the needs of its portfolio companies. As of September 30, 2024, the company had total investments at fair value amounting to $684 million, showcasing its financial strength and capacity to support emerging technologies.
Focus on Sustainable Growth
The company is dedicated to fostering sustainable growth in the technology sector. It has made significant investments in companies that focus on sustainability, with a total of $79.8 million in fair value of non-affiliate debt investments in the sustainability sector as of September 30, 2024.
| Investment Sector | Total Investment (Fair Value in $ million) |
|---|---|
| Technology | 633.3 |
| Life Sciences | 30.4 |
| Sustainability | 79.8 |
| Total Investments | 684.0 |
Partnerships and Collaborations
Horizon Technology Finance Corporation recognizes the importance of strategic partnerships in achieving its vision. The company collaborates with advisors and other financial institutions to enhance its investment capabilities and reach. As of October 2024, HRZN had entered into a note purchase agreement for the issuance of $20 million in convertible notes, further solidifying its financial partnerships.
Strong Financial PerformanceThe financial performance of HRZN reflects its successful execution of its vision. The net investment income for the nine months ended September 30, 2024, was $37.4 million, demonstrating the company's ability to generate returns while supporting innovative companies.
Commitment to Shareholder Value
Horizon Technology Finance Corporation is committed to delivering value to its shareholders through consistent distributions. The company declared distributions of $0.33 per share for the three months ended September 30, 2024, reflecting its strong cash flow and commitment to shareholder returns.
| Distributions Declared (per share) | Date |
|---|---|
| $0.11 | October 2024 |
| $0.11 | November 2024 |
| $0.11 | December 2024 |
| $0.33 | Total Q3 2024 |
Horizon Technology Finance Corporation's vision for 2024 is built on a solid foundation of innovation, sustainable growth, strategic partnerships, and a commitment to shareholder value. These components reflect the company's strategic direction and its role in supporting the growth of technology and life sciences sectors.
Core Values of Horizon Technology Finance Corporation (HRZN)
Core Values of Horizon Technology Finance Corporation (HRZN)
Integrity
The core value of integrity at Horizon Technology Finance Corporation emphasizes ethical practices and transparency in all operations. The company demonstrates its commitment through rigorous compliance with regulatory standards and responsible investment practices.
In 2024, HRZN reported total assets of $793.1 million and net assets of $342.5 million as of September 30. The company adheres to strict guidelines in managing its investment portfolio, which includes $684 million in total investments with a focus on technology and life sciences sectors.
Innovation
Innovation is central to HRZN's strategy, driving the development of new financial products and services tailored to the needs of technology and life sciences companies. HRZN has actively invested in emerging sectors, contributing to a total of $76.4 million in investment income for the nine months ended September 30, 2024.
For instance, HRZN funded $2.5 million in debt investment to Standvast Holdings, LLC, reflecting its proactive approach to supporting innovative businesses.
Collaboration
Collaboration fosters a culture of teamwork and partnership within HRZN and with its portfolio companies. The company’s administrative agreement with its advisor facilitates administrative support and operational efficiency, with $1.3 million in administrative fees paid for the nine months ended September 30, 2024.
HRZN’s collaborative efforts extend to co-investment opportunities with its advisor funds, enabling a comprehensive approach to investment strategies.
Responsibility
Responsibility reflects HRZN's commitment to sustainable investing and ethical management of resources. The company is dedicated to responsible capital allocation, evidenced by a portfolio that includes $655.9 million in non-affiliate investments at fair value.
As of September 30, 2024, HRZN maintained a spillover income of $1.27 per share, indicating its focus on returning value to shareholders while responsibly managing its investments.
Excellence
Excellence drives HRZN to achieve high standards of performance and service delivery. The company’s net investment income before excise tax for the nine months ended September 30, 2024, was $38.5 million, showcasing its operational efficiency and strong financial management.
HRZN also reported a portfolio turnover ratio of 13.4%, which reflects its commitment to maintaining a dynamic and effective investment strategy.
| Core Value | Description | Recent Financial Data |
|---|---|---|
| Integrity | Commitment to ethical practices and transparency. | Total Assets: $793.1 million Net Assets: $342.5 million |
| Innovation | Focus on developing new financial products and services. | Investment Income: $76.4 million |
| Collaboration | Fostering teamwork and partnerships. | Administrative Fees: $1.3 million |
| Responsibility | Commitment to sustainable investing. | Non-Affiliate Investments: $655.9 million Spillover Income: $1.27 per share |
| Excellence | Achieving high performance standards. | Net Investment Income: $38.5 million Portfolio Turnover Ratio: 13.4% |
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Article updated on 8 Nov 2024
Resources:
- Horizon Technology Finance Corporation (HRZN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Horizon Technology Finance Corporation (HRZN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Horizon Technology Finance Corporation (HRZN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.