13 unchanged sentences
our expectations around the performance of borrowers in which we invest;
+Added: our regulatory structure and the regulations that govern us;
+Added: the ability of significant borrowers to pay their obligations to us as they come due;
our success in retaining our officers and directors, or replacing them in the event we lose their services;
5 unchanged sentences
the ability of our portfolio companies to achieve their objectives;
−Removed: our regulatory structure and tax treatment;
the adequacy of our cash resources and working capital;
13 unchanged sentences
Legal and Accounting Expenses
−Removed: Executive Management Compensation
Insurance Expense
11 unchanged sentences
Our general operating expenses were $92,214 for the year ended December 31, 2024 and $149,708 for the year ended December 31, 2023.
−Removed: The increase in the current period is primarily related to higher fees incurred in relation to the unused portion on our line of credit (see Liquidity and Capital Resources below for more information).
+Added: The decrease in the current period results primarily from higher fees we incurred in 2023 for the unused portion on our line of credit (see Liquidity and Capital Resources below for more information).
Legal and Accounting Expenses.
Our legal and accounting expenses were $550,248 for the year ended December 31, 2024 and $761,525 for the year ended December 31, 2023.
−Removed: The decrease in the current period is primarily related to a decrease in legal, consulting and marketing costs incurred.
+Added: The decrease in the current period results primarily to a decreased need for legal and consulting services, and the decision to spend less on marketing.
Executive Management Compensation.
Our executive management compensation was $933,157 for the year ended December 31, 2024 and $1,848,393 for the year ended December 31, 2023.
−Removed: The increase in 2023 over 2022 is due to a stock option issuance recognized in January 2023.
+Added: The decrease in the current period results from the absence of any stock-based compensation expense in the current period.
Director’s Fees.
Our director’s fees were $300,000 for the year ended December 31, 2024 and $722,968 for the year ended December 31, 2023.
−Removed: The increase in 2023 over 2022 is due to a stock option issuance recognized in January 2023.
+Added: The decrease in the current period is results from the absence of any stock-based compensation expense in the current period.
Interest Expense.
Our interest expense was $320 for the year ended December 31, 2024 and $78,000 for the year ended December 31, 2023.
−Removed: The 2023 decrease from 2022 is due to a lower use of the line of credit arrangement we entered into in 2022 (see Liquidity and Capital Resources below for more information).
−Removed: For the year ended December 31, 2023 our net investment loss was $419,998.
+Added: The decrease in the current period results from our repayment in full and termination of the line of credit arrangement in January 2024.
+Added: (see Liquidity and Capital Resources below for more information).
For the year ended December 31, 2024 our net investment gain was $1,325,244.
−Removed: The increased net investment loss during 2023 was primarily the result of the stock option issuance and recognition in January 2023 that was primarily to our officers and directors, in addition to lower interest income earned during the course of 2023, including related origination fees.
+Added: For the year ended December 31, 2023, our net investment loss was $419,998.
+Added: The increased net investment gain during 2024 results primarily from the absence of stock-based compensation expense in 2024 compared to significant stock-based compensation expense in 2023 from the issuance of stock options to our officers and directors.
Financial Condition
At December 31, 2024, we had an increase in net assets of $1,167,726 as compared to December 31, 2023.
−Removed: This increase in net assets was primarily due to the issuance and exercise of stock options, partially offset by the decrease in the fair value of our investments and reduced cash and cash equivalents.
−Removed: Our net assets increased by $4,457,511 at December 31, 2022 as compared to December 31, 2021, due to the capital we raised during our August 2022 public offering and an increase in our interest income earned from the short-term loans we provided.
+Added: This increase in net assets was primarily due to the overall reduction in operating expenses.
+Added: Our net assets increased by $718,703 at December 31, 2023 as compared to December 31, 2022, due to the capitalized issuance and exercise of stock options, partially offset by the decrease in the fair value of our investments and reduced cash and cash equivalents.
Liquidity and Capital Resources
4 unchanged sentences
$ (1,137,617 )
−Removed: $ (4,888,302 )
Financing activities
−Removed: Net decrease in cash
+Added: Net increase (decrease) in cash
Cash, beginning of period
8 unchanged sentences
During the course of 2023, the Loan Agreement, together with our cash and cash equivalents, were our primary sources of liquidity.
−Removed: With the termination of the Loan Agreement, however, our cash and cash equivalents are our remaining sources of liquidity as of the date of this report.
+Added: With the termination of the Loan Agreement, however, our cash and cash equivalents are our remaining sources of liquidity.
In addition, we expect that some of our investment positions will mature, resulting in additional available cash.
3 unchanged sentences
In 2024, we made new investments aggregating $5,665,526, and refinanced or otherwise extended the term to maturity of investments aggregating $17,795,000.
−Removed: Of these amounts, $5 million were initially loaned to Mustang Funding, LLC in 2023, and another of $5 million earlier loaned in 2022 was refinanced, such that we had an aggregate of $10 million invested in Mustang Funding, LLC at December 31, 2023, all of which was due to mature at May 31, 2024.
−Removed: In 2023, we also wrote-down (i.e., reduced the fair market value of our short-term loans) an aggregate of $935,000 of our investments in preferred stock and $345,421 in one of our short-term loan investments.
−Removed: In general, these write-downs occurred due to our judgment that some aspect of our investment was no longer likely collectible in full on account of the borrower’s financial condition, prospects, or both.
−Removed: The write-downs were offset by an increase in market valuations of our remaining short-term loan portfolio as well as market changes in our common stock and other equity holdings, resulting in a net change in unrealized depreciation of $641,433 as reflected in the statement of operations.
+Added: Of these amounts, $5 million in principal amount was initially loaned to Mustang Funding, LLC in 2023, while another $5 million in principal amount (earlier been loaned in 2022) was refinanced, such that we had an aggregate of $10 million invested in Mustang Funding, LLC at December 31, 2024, all of which is currently due to mature at March 28, 2027.
+Added: In 2024, we also recognized as worthless one of our preferred stock investments.
+Added: This investment had been de-valued in previous years by $635,000, and we recognized an additional loss in 2024 of $265,000.
+Added: We also settled through litigation on one of our short-term loans and recognized a loss of $100,000.
+Added: This was offset by $500,000 of valuation losses recorded in prior years, resulting in a net gain of $400,000 in 2024.
+Added: The write-offs were offset by an increase in market valuations of our remaining short-term loan portfolio as well as market changes in our common stock and other equity holdings, resulting in a net change in unrealized depreciation of $1,029,277 as reflected in the statement of operations.
Capital Expenditures
20 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.