Horizon Technology Finance (NASDAQ: HRZN) reported Q1 EPS of $0.26, $0.07 worse than the analyst estimate of $0.33.

• Net investment income of $4.3 million, or $0.26 per share, compared to $3.2 million, or $0.28 per share for the prior-year period
• Total investment portfolio of $334.5 million as of March 31, 2020
• Net asset value of $193.5 million, or $11.48 per share, as of March 31, 2020
• Annualized portfolio yield on debt investments of 13.2% for the quarter
• Funded six loans totaling $50.5 million during the quarter
• Raised total net proceeds of approximately $16.2 million with "at-the-market" ("ATM") offering program
• Experienced liquidity events from five portfolio companies
• Cash of $38.8 million and credit facility capacity of $80.0 million as of March 31, 2020
• Held portfolio of warrant and equity positions in 70 companies as of March 31, 2020
• Undistributed spillover income of $0.38 per share as of March 31, 2020
• Subsequent to quarter end, declared distributions of $0.10 per share payable in July, August and September 2020
• Subsequent to quarter end, purchased all of the limited liability company interests of Arena in Horizon Secured Loan Fund I ("HSLFI"), its joint venture

"In this challenging economic environment, we are focused on continuing to manage our existing portfolio of investments, maintain a strong balance sheet and prudently originate new investments," said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon. "We are working closely with the management teams and investors of our portfolio companies to help them through this period of great uncertainty, especially those companies that have been most impacted by COVID-19. We believe our current liquidity position and strong balance sheet provide us with the capacity to manage through this unprecedented environment."

"Our first quarter results began to be impacted by the progression of COVID-19 in March, and we expect that prepayment activity will be reduced for the foreseeable future," added Mr. Pomeroy. "Unfortunately, the impact of the pandemic, the global shut-down of the economy and uncertainty in the capital markets have had a negative impact on the fair value of our investments. While our outlook is cautious, we are maintaining our current monthly distribution level of $0.10 per share based upon our outlook and our spillover income. Looking ahead, we will continue to closely monitor the environment, our portfolio companies and our credit quality, while we selectively invest in opportunities that meet our underwriting criteria, in order to continue to deliver value to our shareholders."

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