SVVC 10-K & 10-Q changes, risk factors and insider trading

Certain trends in the technology industry may have an impact on the portfolio in coming quarters. In particular, the semiconductor industry, which has historically been a highly cyclical industry, has enjoyed a period of strong growth over the past several years. Given the substantial weighting of semiconductor investments in the current portfolio, the Fund will be sensitive to changesgrowth rates in thisindustrial industry.use Fundof performancenickel mayboron alsocoatings, beas impactedwell byas the speed of adoption of certain new technologies, including, but not limited to: elect3ronelectron radiation for cancer treatment, X-ray inspection of electronic components, and small form factor satellites.treament.

For the year ended December 31, 2024,2025, we had investment income of $109,836$13,754 primarily attributabledue to interest oninterest convertible/termaccrued notefrom investmentsmoney withmarket Hera.fund.

For the year ended December 31, 2023,2024, we had investment income of $122,631$109,836 primarily attributable to interest on convertible/term note investments with Hera.Hera Systems.

For the year ended December 31, 2022,2023, we had investment income of $(10,008,422)$122,631 primarily attributable to an interest adjustment on convertible/term note investments with IntraOpHera Medical Corp and Wrightspeed.Systems.

The lower level of investment income in the year ended December 31, 20242025 compared to the year ended December 31, 20232024 was due to reduction in interest accruedbearing on Hera.notes.

The higherlower level of investment income in the year ended December 31, 20232024 compared to the year ended December 31, 20222023 was due to an interest adjustmentaccrued on notesHera issued by IntraOp and Wrightspeed in 2022.Systems.

Significant components of operating expenses for the year ended December 31, 2024,2025, were professional fees (audit, legal, accounting, and consulting) of $454,285, and$810,267, directors’ fees of $300,281.$(100,227), administration fees of $118,014, and compliance fees of $110,336.

The net investment income/(loss) was $(1,286,068) for the year ended December 31, 2025, $1,875,422 for the year ended December 31, 2024, and $1,081,579 for the year ended December 31, 2023, and $(12,447,467) for the year ended December 31, 2022.2023.

During the year ended December 31, 2024,2025, we recognized net realized losses of approximately $11,686,668$25,942,832 from the sale of investments. Realized losses were higher compared to the Fund's realized losses in 20232024 due to the sale of investments, primarily Herathe Systems,maturity of Wrightspeed Notes in 2024.2025.

During the year ended December 31, 2023, we recognized net realized losses of approximately $7,864,982 from the sale of investments. Realized losses were higher compared to the Fund’s realized gains in 2022 due to the sale of investments, primarily SiGen in 2023.

ForThe the year ended December 31, 2022, the netgreater decrease in net assets resulting from operations (net of deferred taxes) totaled $64,145,033 and the basic and fully diluted net change in net assets per share for the year ended December 31, 20222025 wasas $(9.31).compared to the year ended December 31, 2024, is due primarily to no management fee waiver in 2025.

At December 31, 2024,2025, we had investments in public and private securities totaling approximately $0.3$0.2 million.million Also,which at December 31, 2024, we hadincludes approximately $0.7$56 millionthousand in cash.a money market fund. We primarily invest cash on hand in money market treasury portfolios. We expect the portion of our portfolio consisting of cash and cash equivalents to decrease as we become fully invested.decrease.

As of December 31, 2024,2025, net assets totaled approximately $1.1$(0.2) million, with an NAV per share of $0.15.$0.00. Our primary use of funds will be investments in portfolio companies and payments of fees and other operating expenses we incur. Additionally, we expect to raise additional capital to support our future growth through future equity offerings. To the extent we determine to raise additional equity through an offering of our common stock at a price below NAV, existing investors will experience dilution.

At December 31, 2024,2025, our investment in IntraOp consisted of 26,856,187 shares of Series C preferred stock, $3,000,000 par value term note, $2,000,000 par value term note, $1,300,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $1,000,000 par value convertible note, $400,000 par value convertible note, $750,000 par value convertible note, $1,000,000 par value convertible note, $1,000,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $500,000 par value convertible note, $200,000 par value convertible note, $150,000 par value convertible note, $350,000 par value convertible note, $700,000 par value convertible note, a $10,961,129 par value convertible note, with a combined aggregate fair value of approximately $25 thousand.$1,523.

At December 31, 2024,2025, our investment in Lyncean consisted of 869,792 shares of Series B preferred stock with a combined fair value of approximately $0.

At December 31, 2024,2025, our investments in UCT consisted of 1,500,000 shares of common stock with a combined fair value of approximately $260 thousand.$167,642.

We make investments in securities of both public and private companies. Our portfolio investments consist principally of equity and equity-like securities, including common and preferred stock, warrants for the purchase of common and preferred stock, and convertible and term notes. The fair value of our investment portfolio was approximately 0.1$0.1 million as of MarchJune 31,30, 2026, as compared to approximately $0.2 million as of December 31, 2025.

The following table summarizes the fair value of our investment portfolio by industry sector as of MarchJune 31,30, 2026, and December 31, 2025.

Comparison of the three months ended MarchJune 31,30, 2026 to the three months ended MarchJune 31,30, 2025.

For the three months ended MarchJune 31,30, 2026, we had investment income of $140$214 primarily attributable to interest accrued on money market funds.investments.

For the three months ended MarchJune 31,30, 2025, we had investment income of $5,965$170,861 primarily attributable to adjustments to interest accrued on moneyconvertible/term marketnote funds.investments with Hera Systems.

The lower level of investment income in the three months ended MarchJune 31,30, 2026, compared to the three months ended MarchJune 31,30, 2025, was due to decreaseless inaccrued investmentinterest inon money market.investments.

Operating expenses totaled approximately $(6,061) during the three months ended June 30, 2026, and $234,035 during the three months ended June 30, 2025 Significant components of net operating expenses for the three months ended MarchJune 31,30, 2026 were managementnet feelegal expensefees reimbursement of $1,081 (see Note 4), professional fees (audit, legal, and consulting) of $42,706, director fees of $12,500,$86,624, administration fees of $28,985,$30,545 and compliance fees $27,206.of $27,509.

Significant components of net operating expenses for the three months ended MarchJune 31,30, 2025,2025 were management fee expense of $7,378 (see Note 4), professional fees (audit, legal, and consulting) of $54,330,$135,541 director fees of $12,500,and administration fees of $29,091, and compliance fees $27,206.$29,395.

The higherlower level of net operating expenses for the three months ended ended MarchJune 31,30, 2026, compared to the three months ended MarchJune 31,30, 2025, is primarily attributableattributed to anreimbursement increaseprofessional infees deferredpreviously director fees.paid.

The net investment income/(loss) before taxes was $6,275 for the three months ended June 30, 2026, and $(184,09963,174) for the three months ended MarchJune 31, 2026, and $(113,218) for the three months ended March 31,30, 2025.

The largerlower level of net investment loss for the three months ended MarchJune 31,30, 2026, as compared thatto net investment loss for the three months ended MarchJune 31,30, 2025, is primarily attributableattributed to anreimbursement increaseof inprofessional deferredfees directorthat fees.were previously paid.

A summary of the net realized and unrealized gains and losses on investments for the three-month period ended MarchJune 31,30, 2026, and MarchJune 31,30, 2025, is shown below.

During the three months ended MarchJune 31,30, 2026, we recognized no net realized gains/(losses). of $9,974.

During the three months ended MarchJune 31,30, 2026, net unrealized depreciation on total investments increaseddecreased by $24,830.$427. The change in net unrealized appreciation and depreciation of our private investments is based on portfolio asset valuations determined in good faith by theour valuationBoard designee.of Directors.

For the three months ended MarchJune 31,30, 2026, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $(208,929)$3,024 and basic and fully diluted net change in net assets per share for the three months ended MarchJune 31,30, 2026, was $(0.00).

For the three months ended MarchJune 31,30, 2025, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $(223,458)$89,962 and basic and fully diluted net change in net assets per share for the three months ended MarchJune 31,30, 2025, was $(0.030.01).

The smaller declineincrease in net assets resulting from operations for the three months ended MarchJune 31,30, 2026,2026 as compared to the three months ended MarchJune 31,30, 2025, is due primarily to aaa decline in net realized and unrealized losses.

As a business development company, we generally invest in illiquid equity and equity derivatives of securities of venture capital stage technology companies. Under written procedures established by our board of directors, securities traded on stock exchanges, or quoted by NASDAQ, are valued according to the NASDAQ Stock Market, Inc. (“NASDAQ”) official closing price, if applicable, or at their last reported sale price as of the close of trading on the New York Stock Exchange (“NYSE”) (normally 4:00 P.M. Eastern Time). If a security is not traded that day, the security will be valued at its most recent bid price. Securities traded in the over-the-counter market, but not quoted by NASDAQ, are valued at the last sale price (or, if the last sale price is not readily available, at the most recent closing bid price as quoted by brokers that make markets in the securities) at the close of trading on the NYSE. Securities traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market. We obtain these market values from an independent pricing service or at the mean between the bid and ask prices obtained from at least two brokers or dealers (if available, otherwise by a principal market maker or a primary market dealer). In addition, a large percentage of our portfolio investments are in the form of securities that are not publicly traded. The fair value of securities and other investments that are not publicly traded may not be readily determinable. We value these securities quarterly at fair value as determined in good faith by FCM as the valuation designee, subject to oversight by our Board of Directors. FCMOur Board of Directors may use the services of a nationally recognized independent valuation firm to aid it in determining the fair value of these securities.

The methods for valuing these securities may include: fundamental analysis (sales, income, or earnings multiples, etc.), discounts from market prices of similar securities, purchase price of securities, subsequent private transactions in the security or related securities, or discounts applied to the nature and duration of restrictions on the disposition of the securities, as well as a combination of these and other factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time, and may be based on estimates, FCM'sour determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Our net asset value could be adversely affected if FCM'sour determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such securities.

Subsequent to the close of the fiscal quarter on MarchJune 31,30, 2026, and through the date of the issuance of the financial statements included herein, there have been no material events related to our portfolio of investments. Since that date, there have been no purchases or sales of securities by the Fund.