Horizon Technology Finance (NASDAQ: HRZN) reported Q4 EPS of $0.21, $0.07 worse than the analyst estimate of $0.28.

Fourth Quarter 2020 Highlights

• Net investment income ("NII") of $3.9 million, or $0.21 per share, compared to $6.5 million, or $0.43 per share for the prior-year period
• Total investment portfolio of $352.5 million as of December 31, 2020
• Net asset value of $212.6 million, or $11.02 per share, as of December 31, 2020
• Annualized portfolio yield on debt investments of 13.0% for the quarter
• Funded nine loans totaling $76.6 million during the quarter
• Raised total net proceeds of approximately $10.8 million with "at-the-market" ("ATM") offering program
• Experienced liquidity events from three portfolio companies
• Cash of $46.7 million and credit facility capacity of $174.8 million as of December 31, 2020
• Held portfolio of warrant and equity positions in 68 companies as of December 31, 2020
• Undistributed spillover income of $0.32 per share as of December 31, 2020
• Subsequent to quarter end, declared distributions of $0.10 per share payable in April, May and June 2021

"Despite one of the more challenging years, we managed our investment portfolio and capital through 2020 to position ourselves to generate strong results and continue expanding our portfolio as we enter 2021," said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon. "Although our fourth quarter NII of $0.21 per share was impacted by low origination volume in the third quarter, as well as by lower income from prepayments, we did originate nearly $77 million of new loans during the fourth quarter which we expect to provide a strong foundation to generate additional NII in the first quarter of 2021. We are also pleased to maintain our regular monthly distributions of $0.10 per share through June for our shareholders, a testament to the strong earnings power of our growing portfolio and our proactive portfolio management strategy."

"In addition, during the quarter, we made significant progress in successfully exiting several underperforming loans. While this had an impact on realized losses, our portfolio at the end of the year reflects an enhanced credit profile as we enter 2021," continued Mr. Pomeroy. "With the liquidity on our balance sheet, a strong backlog and pipeline of attractive opportunities, and a high market demand for venture debt, we believe we are well situated to take advantage of compelling investment opportunities and to continue delivering attractive returns for our shareholders."

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