Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

FORWARD-LOOKING STATEMENTS

The matters discussed in this report, as well as in future oral and written statements by management of the Company, include forward-looking statements based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements related to future events or our future financial performance. We generally identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other similar words. Important assumptions include our ability to originate new investments and to achieve certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this report include, without limitations, statements as to:

●	our future operating results;

●	our business prospects and the prospects of our prospective portfolio companies and the impact of any potential economic downturn, which could impair our portfolio companies' ability to continue to operate and could lead to the loss of some or all of our investments in such portfolio companies;

●	the impact of investments that we expect to make;
●	the impact of current global economic conditions, including those caused by inflation, an elevated interest rate environment and geopolitical events;

●	the impact of a protracted decline in the liquidity of the credit markets on our business;

●	our informal relationships with third parties;

●	the expected market for venture capital investments and our addressable market;

●	the dependence of our future success on the general economy and its impact on the industries in which we invest;

●	our ability to access the equity market;

●	the ability of our portfolio companies to achieve their objectives;

●	our expected financings and investments;

●	our regulatory structure and tax status;

●	our ability to operate as a business development company and a regulated investment company ("RIC") and the fact that, beginning in 2018, we were no longer able to qualify as a RIC under Subchapter M of the Code;

●	the adequacy of our cash resources and working capital;

●	the timing of cash flows, if any, from the operation of our portfolio companies;

●	the timing, form, and amount of any dividend distributions;

●	impact of fluctuation of interest rates on our business;
●	changes or potential disruptions in our operations and the operations of our portfolio companies, the economy, financial markets or political environment, including those caused by tariffs and trade disputes with other countries, supply chain issues, inflation and an elevated interest rate environment;
●	risks associated with possible disruption in our operations, the operations of our portfolio companies or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, pandemics or cybersecurity incidents;

●	valuation of any investments in portfolio companies particularly those having no liquid trading market; and

●	our ability to recover unrealized losses.

You should not place undue reliance on these forward-looking statements. The forward-looking statements made in this report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this report.

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this prospectus. In addition to historical information, the following discussion and other parts of this prospectus contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under "Risk Factors" and "Forward-Looking Statements" appearing elsewhere herein.

OVERVIEW

We are an externally managed, closed-end, non-diversified management investment company organized as a Maryland corporation that has elected to be treated as a BDC under the 1940 Act. As such, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in "qualifying assets," including securities of private or micro-cap public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. In addition, for tax purposes we are treated as a corporation and are subject to federal and state taxes on our income. FCM serves as our investment adviser and manages the investment process on a daily basis.

Our investment objective is to seek long-term growth of capital, principally by seeking capital gains on our equity and equity-related investments. There can be no assurance that we will achieve our investment objective. Under normal circumstances, we invest at least 80% of our net assets for investment purposes in technology companies. We consider technology companies to be those companies that derive at least 50% of their revenues from products and/or services within the information technology sector or in the "cleantech" sector. Information technology companies include, but are not limited to, those focused on computer hardware, software, telecommunications, networking, Internet, and consumer electronics. While there is no standard definition of cleantech, it is generally regarded as including goods and services designed to harness renewable energy and materials, eliminate emissions and waste, and reduce the use of natural resources. In addition, under normal circumstances we invest at least 70% of our total assets in privately held companies and public companies with market capitalizations of less than $250 million. Our portfolio is primarily composed of equity and equity derivative securities of technology and cleantech companies (as defined above). These investments generally range between $1 million and $10 million each, although the investment size will vary proportionately with the size of our capital base. We acquire our investments through direct investments in private companies, negotiations with selling shareholders, and in organized secondary marketplaces for private securities.

While our primary focus is to invest in illiquid private technology and cleantech companies, we also may invest in micro-cap publicly traded companies. In addition, we may invest up to 30 percent of the portfolio in opportunistic investments that do not constitute the private companies and micro-cap public companies described above. These other investments may include investments in securities of public companies that are actively traded or in actively traded derivative securities such as options on securities or security indices. These other investments may also include investments in high-yield bonds, distressed debt, or securities of public companies that are actively traded and securities of companies located outside of the United States. Our investment activities are managed by FCM.

PORTFOLIO COMPOSITION

We make investments in securities of both public and private companies. Our portfolio investments consist principally of equity and equity-like securities, including common and preferred stock, warrants for the purchase of common and preferred stock, and convertible and term notes. The fair value of our investment portfolio was approximately $0.1 million as of June 30, 2026, as compared to approximately $0.2 million as of December 31, 2025.

The following table summarizes the fair value of our investment portfolio by industry sector as of June 30, 2026, and December 31, 2025.

		June 30, 2026				December 31, 2025
Advanced Materials			(31.6)%				(71.3)%
Medical Devices			(0.8)%				(0.6)%
Semiconductor Equipment			0.0%				0.0%
Automotive			0.0%				0.0%
Investment Companies			(0.9)%				(23.9)%
Other Liabilities in Excess of Other Assets			133.3%				195.8%
Net Assets			100.0%				100.0%

RESULTS OF OPERATIONS

Comparison of the three months ended June 30, 2026 to the three months ended June 30, 2025.

INVESTMENT INCOME

For the three months ended June 30, 2026, we had investment income of $214 primarily attributable to money market investments.

For the three months ended June 30, 2025, we had investment income of $170,861 primarily attributable to adjustments to interest accrued on convertible/term note investments with Hera Systems.

The lower level of investment income in the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due to less accrued interest on investments.

OPERATING EXPENSES

Operating expenses totaled approximately $(6,061) during the three months ended June 30, 2026, and $234,035 during the three months ended June 30, 2025

Significant components of net operating expenses for the three months ended June 30, 2026 were net legal fees reimbursement of $86,624, administration fees of $30,545 and compliance fees of $27,509.

Significant components of net operating expenses for the three months ended June 30, 2025 were professional fees (audit, legal, and consulting) of $135,541 and administration fees of $29,395.

The lower level of net operating expenses for the three months ended ended June 30, 2026, compared to the three months ended June 30, 2025, is primarily attributed to reimbursement professional fees previously paid.

NET INVESTMENT INCOME/(LOSS)

The net investment income/(loss) before taxes was $6,275 for the three months ended June 30, 2026, and $(63,174) for the three months ended June 30, 2025.

The lower level of net investment loss for the three months ended June 30, 2026, as compared to net investment loss for the three months ended June 30, 2025, is primarily attributed to reimbursement of professional fees that were previously paid.

NET INVESTMENT REALIZED GAINS AND LOSSES AND UNREALIZED APPRECIATION AND DEPRECIATION

A summary of the net realized and unrealized gains and losses on investments for the three-month period ended June 30, 2026, and June 30, 2025, is shown below.

		Three Months Ended June 30, 2026
Realized gains		$	9,974
Net change in unrealized depreciation on investments			427
Net realized and unrealized gains on investments		$	10,401

		As of June 30, 2026
Gross unrealized appreciation on portfolio investments		$	---
Gross unrealized depreciation on portfolio investments			(89,713,527	)
Net unrealized depreciation on portfolio investments		$	(89,713,527

		Three Months Ended June 30, 2025
Realized gains	$	(24,169,015	)
Net change in unrealized depreciation on investments		24,142,227
Net realized and unrealized losses on investments	$	(26,788	)

		As of June 30, 2025
Gross unrealized appreciation on portfolio investments	$	---
Gross unrealized depreciation on portfolio investments		(91,590,233	)
Net unrealized depreciation on portfolio investments	$	(91,590,233	)

During the three months ended June 30, 2026, we recognized realized gains of $9,974.

During the three months ended June 30, 2026, net unrealized depreciation on total investments decreased by $427. The change in net unrealized appreciation and depreciation of our private investments is based on portfolio asset valuations determined in good faith by our Board of Directors.

NET INCREASE/(DECREASE) IN ASSETS RESULTING FROM OPERATIONS AND CHANGE IN NET ASSETS PER SHARE

For the three months ended June 30, 2026, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $3,024 and basic and fully diluted net change in net assets per share for the three months ended June 30, 2026, was $(0.00).

For the three months ended June 30, 2025, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $89,962 and basic and fully diluted net change in net assets per share for the three months ended June 30, 2025, was $(0.01).

The increase in net assets resulting from operations for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, is due primarily to aa decline in net realized and unrealized losses.

The following information is a comparison for the six months ended June 30, 2026 and June 30, 2025

INVESTMENT INCOME

For the six months ended June 30, 2026, we had investment income of $354 primarily attributable to interest accrued on money market investments.

For the six months ended June 30, 2025, we had investment income of $176,826 primarily attributable to an adjustment to interest accrued on convertible /term note investments with Hera Systems.

The lower level of investment income in the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due to a decline in professional fees and the impact of net legal fees reimbursement.

OPERATING EXPENSES

Operating expenses totaled approximately $178,178 during the six months ended June 30, 2026, and $353,218 during the six months ended June 30, 2025.

Significant components of net operating expenses for the six months ended June 30, 2026 were administration fees of $59,530 and compliance fees of $54,715..

Significant components of net operating expenses for the six months ended June 30, 2025, were were professional fees of $189,871 and administration fees $58,486.

The lower level of net operating expenses for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, is primarily attributable to a decline in professional fees in the first six months of 2026.

NET INVESTMENT INCOME/(LOSS)

The net investment income/(loss) before taxes was $(177,824) for the six months ended June 30, 2026, and $(176,392) for the six months ended June 30, 2025.

The smaller net investment loss in the six months ended June 30, 2025, compared to the net investment loss in the six months ended June 30, 2026, is primarily due to the decrease in professional fees.

NET INVESTMENT REALIZED GAINS AND LOSSES AND UNREALIZED APPRECIATION AND DEPRECIATION

A summary of the net realized and unrealized gains and loss on investments for the six-month periods ended June 30, 2026, and June 30, 2025, is shown below.

		Six Months Ended June 30, 2026
Realized gains		$	9,974
Net change in unrealized depreciation on investments			(24,403	)
Net realized and unrealized gains/(losses) on investments		$	(14,429	)

		As of June 30, 2026
Gross unrealized appreciation on portfolio investments		$	---
Gross unrealized depreciation on portfolio investments			89,713,527
Net unrealized depreciation on portfolio investments		$	89,713,527

		Six Months Ended June 30, 2025
Realized losses		$	(24,169,015	)
Net change in unrealized depreciation on investments			24,031,987
Net realized and unrealized gains/(losses) on investments		$	(137,028	)

		As of June 30, 2025
Gross unrealized appreciation on portfolio investments		$	---
Gross unrealized depreciation on portfolio investments			(91,590,233	)
Net unrealized depreciation on portfolio investments		$	(91,590,233	)

During the six months ended June 30, 2026, we recognized gains of $9,974.

During the six months ended June 30, 2026, net unrealized depreciation on total investments increased by $24,403. The change in net unrealized appreciation and depreciation of our private investments is based on portfolio asset valuations determined in good faith by our Board of Directors.

During the six months ended June 30, 2025, we recognized net realized losses of approximately $24,169,015 from the sale of investments.

NET INCREASE/(DECREASE) IN ASSETS RESULTING FROM OPERATIONS AND CHANGE IN NET ASSETS PER SHARE

For the six months ended June 30, 2026, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $(211,953) and basic and fully diluted net change in net assets per share for the six months ended June 30, 2026, was $(0.00).

For the six months ended June 30, 2025, the net decrease in net assets resulting from operations (net of deferred taxes) totaled $(313,420) and basic and fully diluted net change in net assets per share for the six months ended June 30, 2025, was $(0.04).

The smaller decrease in net assets resulting from operations for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, is due primarily to a decline in net realized and unrealized losses.

DISTRIBUTION POLICY

Our board of directors will determine the timing and amount, if any, of our distributions. We are not required to pay any minimum level of distributions of our income or capital gains.

CONTRACTUAL OBLIGATIONS

The Fund does not have any Contractual Obligations that meet the requirements for disclosure under Item 303 of Regulation S-K.

OFF-BALANCE SHEET ARRANGEMENTS

The Fund does not have any Off-Balance Sheet Arrangements.

CRITICAL ACCOUNTING POLICIES

This discussion of our financial condition and results of operations is based upon our financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The preparation of these financial statements will require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. In addition to the discussion below, we will describe our critical accounting policies in the notes to our future financial statements.

Valuation of Portfolio Investments

As a business development company, we generally invest in illiquid equity and equity derivatives of securities of venture capital stage technology companies. Under written procedures established by our board of directors, securities traded on stock exchanges, or quoted by NASDAQ, are valued according to the NASDAQ Stock Market, Inc. ("NASDAQ") official closing price, if applicable, or at their last reported sale price as of the close of trading on the New York Stock Exchange ("NYSE") (normally 4:00 P.M. Eastern Time). If a security is not traded that day, the security will be valued at its most recent bid price. Securities traded in the over-the-counter market, but not quoted by NASDAQ, are valued at the last sale price (or, if the last sale price is not readily available, at the most recent closing bid price as quoted by brokers that make markets in the securities) at the close of trading on the NYSE. Securities traded both in the over-the-counter market and on a stock exchange are valued according to the broadest and most representative market. We obtain these market values from an independent pricing service or at the mean between the bid and ask prices obtained from at least two brokers or dealers (if available, otherwise by a principal market maker or a primary market dealer). In addition, a large percentage of our portfolio investments are in the form of securities that are not publicly traded. The fair value of securities and other investments that are not publicly traded may not be readily determinable. We value these securities quarterly at fair value as determined in good faith by our Board of Directors. Our Board of Directors may use the services of a nationally recognized independent valuation firm to aid it in determining the fair value of these securities.

The methods for valuing these securities may include: fundamental analysis (sales, income, or earnings multiples, etc.), discounts from market prices of similar securities, purchase price of securities, subsequent private transactions in the security or related securities, or discounts applied to the nature and duration of restrictions on the disposition of the securities, as well as a combination of these and other factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time, and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such securities.

Revenue Recognition

We record interest or dividend income on an accrual basis to the extent that we expect to collect such amounts. We do not accrue as a receivable interest on loans and debt securities if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount, and market discount are capitalized, and we amortize any such amounts as interest income. Upon the prepayment of a loan or debt security, any unamortized loan origination is recorded as interest income. We will record prepayment premiums on loans and debt securities as interest income when we receive such amounts.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

Recently Issued Accounting Standards

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial statements upon effectiveness.

Inflation

Inflation has not had a significant effect on our results of operations in any of the reporting periods presented herein. However, our portfolio companies have experienced, and may in the future experience, the impacts of inflation on their operating results.

SUBSEQUENT EVENTS

Subsequent to the close of the fiscal quarter on June 30, 2026, and through the date of the issuance of the financial statements included herein, there have been no material events related to our portfolio of investments. Since that date, there have been no purchases or sales of securities by the Fund.