Firsthand Technology Value Fund Reports Significant Decline in Financial Performance for First Half of 2026

Firsthand Technology Value Fund, Inc. reported a significant decline in its financial performance for the six months ending June 30, 2026, compared to the same period in the previous year. The company recorded total investment income of $354, a decrease from $176,826 in the prior year. This decline was primarily attributed to reduced interest income from investments. The net investment loss for the first half of 2026 was $177,824, slightly higher than the loss of $176,392 reported for the same period in 2025. The company’s net assets decreased to $(447,081) as of June 30, 2026, compared to $(235,128) at the end of 2025.

Operating expenses for the first half of 2026 totaled approximately $178,178, down from $353,218 in the same period of 2025. The reduction in expenses was largely due to a decrease in professional fees, which fell from $189,871 to $24,397. The company also reported a net increase in net assets resulting from operations of $(211,953) for the first half of 2026, an improvement from $(313,420) in the previous year. The net realized gains for the first half of 2026 were $9,974, contrasting sharply with the losses of $24,169,015 reported in the same period of 2025.

In terms of operational developments, Firsthand Technology Value Fund's investment portfolio was valued at approximately $148,635 as of June 30, 2026, down from $225,436 at the end of 2025. The company’s investments are primarily in technology and cleantech sectors, with a focus on private and micro-cap public companies. The fund's strategy includes investing at least 80% of its assets in technology companies, which are defined as those deriving at least 50% of their revenues from the information technology or cleantech sectors.

The company has faced challenges in its investment strategy, particularly with its portfolio of privately-held companies, which are inherently illiquid and subject to significant valuation risks. As of June 30, 2026, Firsthand Technology Value Fund held $144,732 in restricted securities, a decrease from $169,165 at the end of 2025. The company’s management has indicated plans to mitigate ongoing financial challenges through potential asset sales, capital infusions, and cost reductions. However, there is substantial uncertainty regarding the success of these strategies, raising concerns about the company's ability to continue as a going concern.

Looking ahead, Firsthand Technology Value Fund remains cautious about its investment outlook, particularly in light of current market conditions, including inflation and geopolitical risks. The company has acknowledged that its future performance will depend on its ability to navigate these challenges while continuing to seek opportunities for growth within its targeted sectors. The management's forward-looking statements emphasize the importance of maintaining flexibility in investment strategies to adapt to changing market dynamics.