Firsthand Technology Value Fund Reports Significant Decline in Financial Performance for Six Months Ending June 30, 2025

Firsthand Technology Value Fund, Inc. reported a significant decline in its financial performance for the six months ending June 30, 2025, compared to the same period in the previous year. The company recorded total investment income of $176,826, a substantial increase from $62,001 in the prior year, primarily due to adjustments in interest accrued on convertible and term note investments. However, the fund's net investment loss before taxes was $(176,392), a stark contrast to the net investment income of $2,636,661 reported for the same period in 2024. This shift is attributed to the absence of a management fee waiver that had previously inflated the 2024 figures.

The fund's total assets decreased to $1,167,234 as of June 30, 2025, down from $1,795,613 at the end of 2024. This decline was driven by a drop in the market value of investments, which fell to $723,147 from $1,060,474. The net assets also decreased to $747,259, resulting in a net asset value per share of $0.11, down from $0.15 at the end of 2024. The company reported a net decrease in net assets resulting from operations of $(313,420) for the six months ended June 30, 2025, compared to a decrease of $(242,451) for the same period in 2024.

Operationally, Firsthand Technology Value Fund has seen a notable increase in professional fees, which totaled $189,871 for the six months ended June 30, 2025, compared to $157,104 in the previous year. The absence of a management fee waiver in 2025 contributed to the higher operating expenses, which totaled $353,218, compared to a negative expense figure of $(2,574,660) in 2024 due to the waiver. The fund's investment strategy remains focused on technology and cleantech companies, with at least 80% of its assets allocated to these sectors.

The company continues to face challenges related to its investment portfolio, particularly with unrealized losses. As of June 30, 2025, the gross unrealized depreciation on portfolio investments was $(91,590,233), reflecting a decrease in the value of its holdings. The fund's management has indicated that the valuation of its investments, particularly in privately held companies, is subject to significant uncertainty and may fluctuate considerably. Looking ahead, the company remains cautious about market conditions and the potential impact of geopolitical events on its investment strategy and overall performance.