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HorizonTechnology Finance A LIFE SCIENCES & TECHNOLOGY VENTURE LENDING PARTNER Horizon Technology Finance Corporation Announces Third Quarter 2021 Financial Results October 26 , 2021 - Net Investment Income per Share of $ 0.40 ; NAV per Share of $ 11.63 - - Debt Portfolio Yield of 16.2 % - - Declares Regular Monthly Distributions of $ 0.10 per Share through March 2022 and $ 0.05 Special Distribution Payable in December 2021 - - Grew Portfolio to Record $ 452 Million - FARMINGTON , Conn . , Oct. 26 , 2021 / PRNewswire / -- Horizon Technology Finance Corporation ( NASDAQ : HRZN ) ( " HRZN " or the " Company " ) , a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology , life science , healthcare information and services , and sustainability industries , today announced its financial results for the third quarter ended September 30 , 2021 . Third Quarter 2021 Highlights • Net investment income ( " NII " ) of $ 8.0 million , or $ 0.40 per share , compared to $ 5.9 million , or $ 0.34 per share for the prior - year period • Total investment portfolio of $ 452.3 million as of September 30 , 2021 • Net asset value of $ 237.6 million , or $ 11.63 per share , as of September 30 , 2021 • Annualized portfolio yield on debt investments of 16.2 % for the quarter • HRZN funded 15 loans totaling $ 98.9 million • HRZN's investment adviser , Horizon Technology Finance Management LLC ( " HTFM " ) , originated $ 141.4 million through its lending platform ( " Horizon Platform " ) , inclusive of the HRZN loans • Raised total net proceeds of approximately $ 6.6 million with " at - the - market " ( " ATM " ) offering program • Experienced liquidity events from five portfolio companies • Cash of $ 42.9 million and credit facility capacity of $ 121.8 million as of September 30 , 2021 • Held portfolio of warrant and equity positions in 74 companies as of September 30 , 2021 • Undistributed spillover income of $ 0.44 per share as of September 30 , 2021 ● Subsequent to quarter end , declared monthly distributions of $ 0.10 per share payable in January , February and March 2022 and a special distribution of $ 0.05 per share payable in December 2021 " We had an excellent third quarter , as HRZN generated net investment income of $ 0.40 per share , significantly grew its portfolio and increased its NAV per share , " said Robert D. Pomeroy , Jr. , Chairman and Chief Executive Officer of HRZN . " The momentum of the ' Horizon ' brand and the Horizon Platform continued to accelerate , which was clearly evidenced by HRZN's quarterly record of $ 99 million of originated loans . HRZN also completed five portfolio exits , leading to a debt portfolio yield of over 16 % , once again among the leaders in the industry . HTFM's predictive pricing strategy continues to generate best - in - class yields , and the power of the Horizon Platform has created a portfolio for HRZN that is the largest in its history and is producing attractive yields for HRZN's shareholders . " " In addition to the strong growth in its portfolio , the credit quality of HRZN's portfolio remains ve solid , with nearly 97 % of its portfolio 3 - rated or better , " continued Mr. Pomeroy . " Demand for venture debt remains robust , and with HRZN's deep committed backlog and ample capacity to originate loans on its platform , as well as HTFM's pipeline of opportunities , HRZN is in a prime position to continue delivering compelling returns to its shareholders . " Third Quarter 2021 Operating Results Total investment income for the quarter ended September 30 , 2021 grew 33 % to $ 16.4 million , compared to $ 12.3 million for the quarter ended September 30 , 2020 , primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio , as well as higher fee income . The Company's dollar - weighted annualized yield on average debt investments for the quarter ended September 30 , 2021 and 2020 was 16.2 % and 15.1 % , respectively . The Company calculates the dollar - weighted annualized yield on average debt investments for any period measured as ( 1 ) total investment income ( excluding dividend income ) during the period divided by ( 2 ) the average of the fair value of debt investments outstanding on ( a ) the last day of the calendar month immediately preceding the first day of the period and ( b ) the last day of each calendar month during the period . The dollar - weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors . Total expenses for the quarter ended September 30 , 2021 were $ 8.3 million , compared to $ 6.5 million for the quarter ended September 30 , 2020. The increase was primarily due to a $ 0.5 million increase in interest expense , a $ 0.4 million increase in the base management fee and a $ 0.5 million increase in the performance based incentive fee . Net investment income for the quarter ended September 30 , 2021 was $ 8.0 million , or $ 0.40 per share , compared to $ 5.9 million , or $ 0.34 per share , for the quarter ended September 30 , 2020 . For the quarter ended September 30 , 2021 , net realized gain on investments was $ 1.3 million , or $ 0.07 per share , compared to $ 1.2 million , or $ 0.07 per share , for the quarter ended September 30 , 2020 . For the quarter ended September 30 , 2021 , net unrealized appreciation on investments was $ 3.4 million , or $ 0.17 per share , compared to net unrealized depreciation on investments of $ 10.3 million , or $ 0.60 per share , for the prior - year period . Portfolio Summary and Investment Activity As of September 30 , 2021 , the Company's debt portfolio consisted of 43 secured loans with an aggregate fair value of $ 429.9 million . In addition , the Company's total warrant , equity and other investments in 76 portfolio companies had an aggregate fair value of $ 22.4 million . Total portfolio investment activity for the three and nine months ended September 30 , 2021 and 2020 was as follows : For the Three Months Ended ( $ in thousands ) For the Nine Months Ended