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Here are 1-2 brief analogies for Horizon Technology Finance (HRZN):

• A debt-focused version of a venture capital firm like Sequoia Capital, for tech and life science startups.
• The JPMorgan Chase for venture-backed tech and life science companies, providing secured loans instead of broad banking services.

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• Venture Debt Financing: Provides secured loans to venture capital-backed technology and life science companies to support their growth and working capital needs.
• Equity Investments: Makes direct equity investments, often in the form of warrants or preferred stock, typically alongside its debt financing to participate in client company upside.

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• Enact Systems, Inc. (Private company)
• Soligenix, Inc. (NASDAQ: SNGX)
• Cybrexa Therapeutics, Inc. (Private company)
• Zura Bio Limited (Private company)

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• KPMG LLP
• American Stock Transfer & Trust Company, LLC
• KeyCorp (KEY)

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Michael P. Balkin Chief Executive Officer

Michael P. Balkin became the Chief Executive Officer of Horizon Technology Finance effective June 5, 2025. He also serves as a member of the Advisor's investment committee and on Horizon's Board of Directors. With over 35 years of experience in investment and portfolio management, Mr. Balkin's background includes serving as a Partner and Co-Manager of the Small-Cap Growth Fund at William Blair & Co, LLC. He was also a Partner and Chief Investment Officer at Magnetar Investment Management, a wholly-owned subsidiary of Magnetar Capital, a multi-strategy hedge fund. Mr. Balkin was the Chief Executive Officer of Foresight Acquisition Corp. in 2021 and is currently an advisor to Wasson Enterprise LLC, a family office, and Highwire Capital, a Private Equity firm. He previously served as an independent director of Horizon since June 2023.

Daniel R. Trolio Executive Vice President and Chief Financial Officer

Daniel R. Trolio serves as Horizon's Executive Vice President and Chief Financial Officer and is also a member of Horizon's investment committee. He has more than 20 years of experience in the accounting and venture debt industries, including 10 years in venture lending. Mr. Trolio previously held the position of Vice President and Corporate Controller at Horizon and its advisor, where he was responsible for all accounting functions, tax, financial reporting, and capital market efforts. Prior to joining Horizon, he served as a Senior Manager at a regional public accounting firm and held positions with KPMG LLP and Arthur Andersen LLP.

Robert D. Pomeroy Jr. Chairman of the Board of Directors

Robert D. Pomeroy Jr. co-founded Horizon Technology Finance Corporation and its Advisor in 2003. He previously served as Chief Executive Officer and member of its investment committee until his retirement in June 2025, remaining as Chairman of the Board. Mr. Pomeroy has over 40 years of diversified lending and leasing experience, with more than 20 years in venture lending. His prior roles include President of GATX Ventures, Inc., the venture lending subsidiary of GATX Corporation, and Executive Vice President of Transamerica Business Credit, where he co-founded and was general manager of Transamerica Technology Finance.

Gerald A. Michaud Special Advisor

Gerald A. Michaud co-founded Horizon Technology Finance Corporation and its Advisor in 2003. He was formerly the President of Horizon and served on its Board of Directors until his retirement in June 2025, after which he assumed the role of Special Advisor to the Chief Executive Officer. Mr. Michaud has over 40 years of diversified lending experience, with more than 25 years in venture lending. He co-founded and was Senior Vice President in charge of business development of Transamerica Technology Finance, the venture lending business of Transamerica Business Credit. Earlier, he was Senior Vice President of business development at GATX Ventures, Inc., and prior to 1993, he founded and served as President of Venture Leasing and Capital.

John C. Bombara Executive Vice President, General Counsel, Chief Compliance Officer and Secretary

John C. Bombara is the Executive Vice President, General Counsel, Chief Compliance Officer, and Secretary of Horizon Technology Finance. He is an original member of the team that founded Horizon's Advisor in 2003. Mr. Bombara has more than 25 years of experience providing legal services to financial institutions and other entities, including over 15 years in venture lending. From 2000 to 2003, he served as in-house counsel for GATX Ventures, Inc.

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The key risks for Horizon Technology Finance (HRZN) include:

1. Credit Quality Deterioration and Non-Accrual Loans: A primary risk stems from the potential for worsening credit quality within its investment portfolio and an increase in non-accrual loans (loans not currently paying interest). Horizon Technology Finance lends to venture-backed technology and life science companies, which inherently carry higher risk. Recent reports indicate a jump in non-accrual investments, representing a significant cost, and a decline in the weighted-average loan credit rating across the portfolio, directly pressuring Net Investment Income (NII) and dividend coverage.
2. Net Asset Value (NAV) Decline: The company has experienced a notable decline in its net asset value per share. This deterioration is attributed to realized and unrealized losses on investments and an overall worsening of portfolio quality. The continued decline in NAV raises concerns about the company's financial health and its ability to maintain shareholder value.
3. Strategic Merger with Monroe Capital: While intended to expand its venture debt platform and enhance competitive positioning, the pending merger with Monroe Capital introduces significant uncertainty and integration risks. The success of combining investment portfolios and leveraging capabilities to stabilize NAV and achieve anticipated benefits is yet to be seen, and the execution of the merger itself poses a material risk.

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• In 2024, U.S. venture debt deals reached an estimated $53.3 billion in investments.
• Looking ahead, the U.S. venture debt market is projected to reach $27.83 billion in 2025, with traditional venture debt accounting for approximately $23.94 billion of that total.

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1. Expansion of the Venture Debt Portfolio: Horizon Technology Finance consistently focuses on originating new high-quality venture debt investments and expanding its total investment portfolio. The company funded nine loans totaling $100.3 million in Q1 2025 and reported a committed backlog of $236 million, indicating a strong pipeline for future growth. In Q4 2024, the company ended the year with a committed and approved backlog of $207 million, expecting further portfolio growth in Q1 2025. This continued expansion of its debt investment base is a primary driver for increasing interest income.

2. Strategic Merger with Monroe Capital (MRCC): The impending merger with Monroe Capital (MRCC) is anticipated to enhance Horizon Technology Finance's assets under management. This merger is also expected to leverage Monroe Capital's support, potentially allowing Horizon to pursue and originate larger venture loans. An increase in the scale and average size of their debt investments directly contributes to revenue growth.

3. Sustained High Portfolio Yields: Horizon Technology Finance has demonstrated its ability to achieve and maintain strong annualized portfolio yields on its debt investments. The company reported a 15.0% portfolio yield in Q1 2025, 14.9% in Q4 2024, and 15.9% in Q3 2024. Maintaining these attractive yields on an expanding portfolio will continue to be a significant contributor to future investment income and, consequently, overall revenue growth.

4. Robust Capital Raising to Support New Investments: The company actively engages in capital raising efforts, such as its "at-the-market" (ATM) offering programs and the issuance of unsecured convertible notes. In Q1 2025, Horizon raised approximately $3.6 million through its ATM program. In Q4 2024, approximately $18.8 million was raised through the ATM program. Furthermore, in Q3 2025, the company successfully raised $40 million through the issuance of 5.5% unsecured convertible notes due 2030 and an additional $10 million in equity through the ATM program. These initiatives provide the necessary capital to fund new high-quality investments and expand the portfolio, thereby fueling revenue growth.

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Share Repurchases

• On April 25, 2025, Horizon's board of directors extended a previously authorized stock repurchase program until June 30, 2026, or until the repurchase of $5.0 million of common stock.
• On August 5, 2025, the board authorized an increase in the maximum amount of shares that can be repurchased, from $5.0 million to $10.0 million of the company's common stock.
• From the inception of the stock repurchase program through June 30, 2025, Horizon repurchased 167,465 shares of its common stock at an average price of $11.22, for a total cost of $1.9 million.

Share Issuance

• On May 30, 2023, Horizon announced a proposed underwritten primary offering of 3,250,000 shares of its common stock, with underwriters having a 30-day option to purchase up to an additional 487,500 shares.
• The company received total accumulated net proceeds of approximately $10.6 million from sales, including $0.3 million of offering expenses.
• As of September 30, 2025, the company had 44,482,470 shares of common stock issued and outstanding, an increase from 40,043,312 shares issued and outstanding as of December 31, 2024.

Inbound Investments

• Horizon Technology Finance entered into a merger agreement with Monroe Capital Corporation (MRCC) on August 7, 2025.
• The proposed merger is expected to provide Horizon with an estimated $165 million of incremental equity capital, based on MRCC's June 30, 2025, preliminary Net Asset Value (NAV), net of estimated transaction expenses.
• On February 23, 2023, an affiliate of Monroe Capital LLC acquired Horizon Technology Finance Management LLC (HTFM), Horizon's investment adviser.

Outbound Investments

• Horizon's investment objective is to maximize total returns by generating current income from directly originated secured loans and capital appreciation from warrants received.
• As of late 2024, the company's diversified investment portfolio exceeded $750 million.
• During the second quarter of 2025, HRZN funded a total of $59.7 million of loans and $0.1 million of equity, and in the third quarter of 2021, HRZN originated $99 million of new loans.