Horizon Technology Finance Corp (HRZN) 2022 Q4 法說會逐字稿

Ladies and gentlemen, greetings, and welcome to the Horizon Technology Finance Corporation Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們，先生們，大家好，歡迎來到 Horizon Technology Finance Corporation 2022 年第四季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。

It is now my pleasure to introduce you to Megan Bacon, Director, IR and Marketing. Please go ahead.

現在我很高興向您介紹 IR 和營銷總監 Megan Bacon。請繼續。

Thank you, and welcome to Horizon Technology Finance Corporation's Fourth Quarter 2022 Conference Call. Representing the company today are Rob Pomeroy, Chairman and Chief Executive Officer; Jerry Michaud, President; and Dan Trolio, Chief Financial Officer. I would like to point out that the Q4 earnings press release and Form 10-K are available on the company's website at horizontechfinance.com.

謝謝，歡迎來到 Horizon Technology Finance Corporation 的 2022 年第四季度電話會議。今天代表公司的是董事長兼首席執行官 Rob Pomeroy；傑瑞·米肖，總裁；和首席財務官 Dan Trolio。我想指出，第四季度收益新聞稿和 10-K 表格可在公司網站 horizontechfinance.com 上找到。

Before we begin our formal remarks, I need to remind everyone that during this conference call, the company will make certain forward-looking statements, including statements with regard to the future performance of the company. Words such as believes, expects, anticipates, intends or similar expressions are used to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ on a material basis from those projected in these forward-looking statements, and some of these factors are detailed in the risk factor discussion in the company's filings with the Securities and Exchange Commission, including the company's Form 10-K for the year ended December 31, 2022. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

在開始正式發言之前，我需要提醒大家，在本次電話會議中，公司將做出一些前瞻性陳述，包括對公司未來業績的陳述。相信、期望、預期、打算或類似的表達方式用於識別前瞻性陳述。這些前瞻性陳述受預測未來結果和條件的固有不確定性的影響。某些因素可能導致實際結果與這些前瞻性陳述中預測的結果存在重大差異，其中一些因素在公司提交給美國證券交易委員會的文件中的風險因素討論中有詳細說明，包括公司的 Form 10 -K 截至 2022 年 12 月 31 日止年度。公司不承擔更新或修改任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。

At this time, I would like to turn the call over to Rob Pomeroy.

在這個時候，我想把電話轉給 Rob Pomeroy。

Welcome, everyone, and thank you for your interest in Horizon. As we always do on our quarterly calls, I will update you on our performance and our current overall operating environment. Today, I will also provide an update on our advisors' exciting new strategic development. Jerry will then discuss our business development efforts, our portfolio events in our markets and Dan will detail our operating performance and financial condition. We will then take some questions.

歡迎大家，感謝您對 Horizon 的關注。正如我們在季度電話會議上所做的那樣，我會向您介紹我們的業績和當前的整體運營環境。今天，我還將提供我們顧問激動人心的新戰略發展的最新情況。然後，Jerry 將討論我們的業務發展工作、我們在市場上的投資組合活動，Dan 將詳細介紹我們的經營業績和財務狀況。然後我們會回答一些問題。

Horizon and our advisor, Horizon Technology Finance Management, performed well in the fourth quarter, capping off a strong 2022 in the face of a challenging macroeconomic environment. Our earnings exceeded our distributions for the quarter and year. We grew the size of our portfolio to over $700 million. We bolstered our balance sheet, and we maintained solid credit quality. We are very pleased with how we successfully navigated through 2022, and I'm proud of our advisors and its team's efforts throughout the year as they further validated the earnings power of our portfolio, our predictive pricing strategy and our disciplined investment approach.

Horizon 和我們的顧問 Horizon Technology Finance Management 在第四季度表現良好，在充滿挑戰的宏觀經濟環境下為 2022 年的強勁表現畫上了句號。我們的收入超過了本季度和本年度的分配。我們將投資組合的規模擴大到超過 7 億美元。我們加強了資產負債表，並保持了穩健的信貸質量。我們對我們如何成功度過 2022 年感到非常高興，我為我們的顧問及其團隊全年的努力感到自豪，因為他們進一步驗證了我們投資組合的盈利能力、我們的預測定價策略和我們嚴謹的投資方法。

Turning to our accomplishments in 2022. Our portfolio at year-end stood at $720 million, an increase of 57% from the end of 2021. Our significant growth resulted from both our advisers' ability to originate high-quality venture debt investments and the increasing power of the Horizon brand in the venture debt community. We finished the year with a committed and approved backlog of $220 million, which provides us with a solid base of opportunities to grow our portfolio in 2023. We generated net investment income of $1.46 per share, well in excess of our distribution level for the year, due largely to higher interest rates on our floating rate investment portfolio and the growth in our portfolio.

談到我們在 2022 年取得的成就。我們年末的投資組合為 7.2 億美元，比 2021 年底增長了 57%。我們的顯著增長得益於我們的顧問發起高質量風險債務投資的能力以及不斷增長的Horizon 品牌在風險債務社區中的影響力。我們以 2.2 億美元的承諾和批准積壓完成了這一年，這為我們在 2023 年擴大投資組合提供了堅實的機會基礎。我們產生了每股 1.46 美元的淨投資收益，遠遠超過了我們當年的分配水平，主要是由於我們浮動利率投資組合的利率較高以及我們投資組合的增長。

I would note that last quarter, based on our strong performance and the confidence in our outlook, we increased our declared monthly distributions by 10% to $0.11 per share as well as paid a $0.05 per share special distribution for our third consecutive year. This quarter, based on our outlook and our undistributed spillover income of $0.68 per share as of year-end, we declared monthly distributions of $0.11 per share through June of 2023. We achieved a portfolio yield on our debt investments for the quarter of 14.5% and a full year debt portfolio yield of 14.4%, at or near the top of the BDC industry.

我要指出的是，上個季度，基於我們強勁的業績和對前景的信心，我們將宣布的每月分配增加 10% 至每股 0.11 美元，並連續第三年支付每股 0.05 美元的特別分配。本季度，根據我們的展望和截至年底每股 0.68 美元的未分配溢出收益，我們宣布截至 2023 年 6 月的月度分配為每股 0.11 美元。本季度我們的債務投資組合收益率達到 14.5%全年債務組合收益率為 14.4%，處於或接近 BDC 行業的最高水平。

We maintained a stable credit profile throughout the year in the face of the challenging macro environment, with 95% of our debt portfolio rated 3 or higher at the end of the year. As always, we are consistently and actively managing our portfolio of investments to maintain its credit quality. We ended the year with a net asset value of $11.47 per share. Finally, we continue to fortify our balance sheet during the year, raising approximately $50 million of equity in 2022 from our at-the-market program, all at a premium to NAV. Additionally, we raised nearly $90 million from our overnight equity offering in March in our notes offering in June. While we have adequate liquidity and capacity to fund our current backlog, we will opportunistically and strategically seek new debt and equity capital as our portfolio and backlog continue to grow.

面對充滿挑戰的宏觀環境，我們全年保持穩定的信用狀況，年末我們 95% 的債務組合評級為 3 或更高。一如既往，我們始終如一地積極管理我們的投資組合，以保持其信用質量。我們以每股 11.47 美元的資產淨值結束了這一年。最後，我們在這一年繼續加強我們的資產負債表，在 2022 年從我們的上市計劃中籌集了大約 5000 萬美元的股權，所有這些都高於資產淨值。此外，我們在 6 月份的票據發行中從 3 月份的隔夜股票發行中籌集了近 9000 萬美元。雖然我們有足夠的流動性和能力為當前的積壓訂單提供資金，但隨著我們的投資組合和積壓訂單的持續增長，我們將有機會和戰略性地尋求新的債務和股權資本。

Entering 2023 with concerns about higher interest rates, inflation and a possible global recession, we continue to closely manage our portfolio and will remain selective in originating new investments. We believe our portfolio and backlog is positioned to generate strong NII in 2023, which may exceed our distributions. On the strategic front, last week, we were excited to announce that our adviser has agreed to be acquired by an affiliate of Monroe Capital, one of the premier boutique asset managers in the country, with over $16 billion in assets under management. Please note that the transaction is subject to certain closing conditions, including shareholder approval of a new investment management agreement due to the change of control in the advisor. The new investment management agreement is substantially similar to the existing agreement between our advisor and HRZN. And the Board of Directors is unanimously recommending approval of the new agreement including all of our independent directors. We believe that Monroe's platform, culture and values are well aligned with those with the adviser, making this a natural fit for the advisor. Most importantly, the entire team that currently staffs our adviser is expected to remain and continue to manage Horizon. To be clear, Monroe has agreed to acquire the adviser, not Horizon, the public company. We also believe that Monroe's purchase of the advisor will create more value over time for Horizon shareholders because the adviser's ability to access Monroe Capital's platform and infrastructure will lead to increased investment opportunities and greater portfolio diversity for Horizon while potentially reducing expenses through economies of scale and access to more efficient capital.

進入 2023 年，我們擔心利率上升、通貨膨脹和可能的全球經濟衰退，我們將繼續密切管理我們的投資組合，並將在發起新投資時保持選擇性。我們相信，我們的投資組合和積壓訂單有望在 2023 年產生強勁的 NII，這可能會超過我們的發行量。在戰略方面，上週，我們很高興地宣布，我們的顧問已同意被 Monroe Capital 的附屬公司收購，Monroe Capital 是美國首屈一指的精品資產管理公司之一，管理著超過 160 億美元的資產。請注意，該交易受某些成交條件的約束，包括由於顧問控制權的變化，股東批准新的投資管理協議。新的投資管理協議與我們的顧問與 HRZN 之間的現有協議基本相似。董事會一致建議批准新協議，包括我們所有的獨立董事。我們相信 Monroe 的平台、文化和價值觀與顧問的平台、文化和價值觀非常吻合，因此非常適合顧問。最重要的是，目前擔任我們顧問的整個團隊預計將留下並繼續管理 Horizon。需要明確的是，夢露同意收購這家顧問公司，而不是上市公司 Horizon。我們還認為，隨著時間的推移，Monroe 對顧問的收購將為 Horizon 股東創造更多價值，因為顧問訪問 Monroe Capital 平台和基礎設施的能力將為 Horizon 帶來更多的投資機會和更大的投資組合多樣性，同時可能通過規模經濟和獲得更有效的資本。

The advisor and its existing management have strong incentives to grow and strengthen Horizon over time. We are confident that the advisor, Monroe, Horizon and Horizon's shareholders will all benefit from this transaction and are excited to be partnering with Monroe. In summary, the Horizon team continues to rely on its collective expertise and experience in all economic cycles to smartly execute its strategy, and remains well positioned to navigate through the current credit cycle while taking advantage of new opportunities to originate high-quality investments. With that, I will now turn the call over to Jerry and Dan to give you more details and color on our performance. Jerry?

該顧問及其現有管理層有強烈的動機隨著時間的推移發展和加強 Horizon。我們相信顧問、Monroe、Horizon 和 Horizon 的股東都將從此次交易中受益，並很高興與 Monroe 合作。總而言之，Horizon 團隊繼續依靠其在所有經濟周期中的集體專業知識和經驗來巧妙地執行其戰略，並在利用新機會發起高質量投資的同時，保持在當前信貸週期中的有利地位。有了這個，我現在將把電話轉給 Jerry 和 Dan，為您提供更多關於我們表現的細節和顏色。傑瑞？

Thanks, Rob, and good morning to everyone. Despite continued macroeconomic headwinds in Q4, we grew our portfolio by $85 million in the quarter and $262 million for the year, ending 2022 with a record high portfolio of $720 million. In the fourth quarter, we funded 10 transactions totaling $104 million, including $73 million in debt investments to 4 new portfolio companies consisting of investments in 2 new tech companies and 2 new life science companies, providing further diversification to our portfolio. Our onboarding yield of 13.3% during the quarter was above Q3 yield and continues to reflect our discipline in structuring and pricing transactions, which will produce strong net investment income. We experienced 1 loan prepayment and 1 partial paydown during the quarter totaling $8 million. We expect prepayments to continue to be lower in the first half of 2023 compared to our historic levels as the IPO and M&A markets remain muted.

謝謝，Rob，大家早上好。儘管第四季度宏觀經濟持續逆風，但我們的投資組合在本季度增加了 8500 萬美元，全年增加了 2.62 億美元，到 2022 年底，投資組合達到了創紀錄的 7.2 億美元。第四季度，我們為 10 筆交易提供了總計 1.04 億美元的資金，其中包括對 4 家新投資組合公司的 7300 萬美元債務投資，其中包括對 2 家新技術公司和 2 家新生命科學公司的投資，進一步豐富了我們的投資組合。本季度我們的入職收益率為 13.3%，高於第三季度的收益率，並繼續反映我們在交易結構和定價方面的紀律，這將產生強勁的淨投資收入。本季度我們經歷了 1 筆貸款預付款和 1 筆部分付款，總計 800 萬美元。由於 IPO 和併購市場保持低迷，我們預計 2023 年上半年的預付款項將繼續低於我們的歷史水平。

Our debt portfolio yield of 14.5% for the quarter was a testament to the value of our floating interest rate structures in a rising rate environment, which helped us generate one of the highest portfolio yields in the BDC industry. As of December 31, we held warrant and equity positions in 98 portfolio companies with a fair value of $32 million. As we've consistently noted, structuring investments with warrants and equity rights is a key aspect of our venture debt strategy and an additional value generator. In the fourth quarter, we closed $133 million in new loan commitments and approvals while we maintained our selective approach to new opportunities and ended the year with a committed and approved backlog of $220 million compared to $252 million at the end of the third quarter. We're pleased with the size of our committed backlog as it positions us to grow our portfolio in the current challenging macro environment.

本季度我們的債務投資組合收益率為 14.5%，證明了我們浮動利率結構在利率上升環境中的價值，這幫助我們產生了 BDC 行業中最高的投資組合收益率之一。截至 12 月 31 日，我們持有 98 家投資組合公司的權證和股權頭寸，公允價值為 3200 萬美元。正如我們一貫指出的那樣，利用認股權證和股權構建投資是我們風險債務戰略的一個關鍵方面，也是一個額外的價值來源。在第四季度，我們完成了 1.33 億美元的新貸款承諾和批准，同時我們保持了對新機會的選擇性方法，並在年底時承諾和批准的積壓訂單為 2.2 億美元，而第三季度末為 2.52 億美元。我們對我們承諾積壓的規模感到滿意，因為它使我們能夠在當前充滿挑戰的宏觀環境中發展我們的投資組合。

As we noted on our prior call, most of our funding commitments are subject to our portfolio companies meeting certain key milestones. Our portfolio's credit quality remains solid as shown by the fact that the fair value of 95% of our debt portfolio consisted of 3 and 4 rated debt investments as of December 31. We had 3 one-rated debt investments at the end of Q4, representing 1.2% of our total debt portfolio, and we had 2 2-rated debt investments. We continue to closely follow and regularly communicate with all of our portfolio companies as well as monitor the overall macro environment.

正如我們在之前的電話會議上指出的那樣，我們的大部分資金承諾取決於我們的投資組合公司是否達到某些關鍵里程碑。截至 12 月 31 日，我們 95% 的債務組合的公允價值由 3 級和 4 級債務投資組成，這表明我們的投資組合的信用質量仍然穩健。我們在第四季度末有 3 項一級債務投資，代表占我們總債務組合的 1.2%，我們有 2 項 2 級債務投資。我們繼續密切關注並定期與我們所有的投資組合公司進行溝通，並監控整體宏觀環境。

Subsequent to the end of Q4, Horizon funded 2 new transactions totaling $25 million, received 2 prepayments totaling $10 million and received 1 partial prepayment totaling $3.2 million. In addition, upon the closing of Cadrenal Therapeutics initial public offering on January 24, 2023, Horizon received 600,000 shares of stock of Cadrenal stock which closed at $2.06 on Monday. We have recorded no investment for Cadrenal at the end of Q4.

第四季度末，Horizon 資助了 2 筆新交易，總額為 2500 萬美元，收到了 2 筆總額為 1000 萬美元的預付款，並收到了 1 筆總額為 320 萬美元的部分預付款。此外，在 2023 年 1 月 24 日 Cadrenal Therapeutics 首次公開募股結束後， Horizon 收到了 600,000 股 Cadrenal 股票，週一收於 2.06 美元。我們在第四季度末沒有記錄對 Cadrenal 的投資。

Turning now to the venture capital environment. According to PitchBook, approximately $238 billion was invested in VC-backed companies in 2022. While not the record-shattering year of 2021, it was still the second highest year of VC investment on record. With that said, VC investment activity continued to soften in the fourth quarter. And given the current market environment with lower M&A activity in a virtually closed IPO market, VC investors will likely continue to reduce the pace of investment in the first half of this year. We note, however, that despite the lower level of investment of 2022, the VC community did continue to invest in high-quality, growth-oriented companies in the healthcare tech, sustainability and space technology markets.

現在轉向風險投資環境。根據 PitchBook 的數據，2022 年約有 2380 億美元投資於風險投資支持的公司。雖然 2021 年不是破紀錄的一年，但它仍然是有記錄以來風險投資投資第二高的年份。儘管如此，風險投資活動在第四季度繼續走軟。鑑於當前市場環境，在幾乎封閉的 IPO 市場中併購活動減少，風險投資者可能會在今年上半年繼續降低投資步伐。然而，我們注意到，儘管 2022 年的投資水平較低，但風險投資界確實繼續投資於醫療保健技術、可持續發展和空間技術市場中以增長為導向的高質量公司。

In terms of VC fundraising, $163 billion was raised during 2022, a record. However, only $12 billion was raised in the fourth quarter, which could signal considerably lighter VC fundraising for 2023. At the same time, VC's dry powder of just under $300 billion remains at record levels. Meanwhile, VC-backed exit activity remains modest given the current environment and the closed IPO window total exit value for the quarter was just $5 billion and the $71 billion exit value for the year was the lowest since 2016. Given the uncertainty environment, we certain -- we would expect VC-backed exit activity to remain muted for the first half of 2023. Demand for venture debt remains relatively solid as venture-backed companies continue to seek alternative financing options while they wait for the M&A and IPO markets to emerge from their slumber.

在風險投資籌資方面，2022 年籌集了 1630 億美元，創歷史新高。然而，第四季度僅籌集了 120 億美元，這可能預示著 2023 年的 VC 籌資活動將大大減少。與此同時，VC 的干火藥略低於 3000 億美元仍處於創紀錄水平。與此同時，鑑於當前環境，風險投資支持的退出活動仍然溫和，本季度關閉的 IPO 窗口總退出價值僅為 50 億美元，而全年 710 億美元的退出價值是自 2016 年以來的最低水平。鑑於不確定的環境，我們確信-- 我們預計 2023 年上半年，風險投資支持的退出活動將保持低迷。風險投資債務的需求仍然相對穩定，因為風險投資支持的公司在等待併購和 IPO 市場出現的同時繼續尋求替代融資方案他們的睡眠。

Further, we have seen tech-oriented banks begin to tighten their activity in the venture debt market. This lack of alternative financing sources creates additional opportunity for our advisor to source and originate high-quality venture debt loans. Given our advisor's strong and active lending platform and solid investment capacity of Horizon, we believe Horizon remains well situated to compete for and win high quality and well-priced investments, which will continue to grow the Horizon portfolio. Our committed, approved and awarded backlog as of today stands at $225 million, while our Advisor's pipeline of new opportunity today remains at $900 million, still near historic highs.

此外，我們已經看到以科技為導向的銀行開始收緊他們在風險債務市場的活動。缺乏替代融資來源為我們的顧問尋找和發起高質量風險債務貸款創造了更多機會。鑑於我們的顧問強大而活躍的借貸平台以及 Horizon 穩固的投資能力，我們相信 Horizon 仍然處於競爭和贏得高質量和價格合理的投資的有利位置，這將繼續擴大 Horizon 投資組合。截至今天，我們承諾、批准和授予的積壓訂單為 2.25 億美元，而我們顧問的新機會管道今天仍為 9 億美元，仍接近歷史高位。

Looking ahead in 2023, we remain focused on credit quality to ensure optimal outcomes for our portfolio. We believe the challenging environment may persist for at least the first half of 2023 but there will continue to be attractive, quality companies looking for venture debt solutions, which we enable us to selectively grow our portfolio, our committed backlog and our advisors pipeline. Thus, we believe we remain well positioned to continue delivering additional long-term shareholder value.

展望 2023 年，我們將繼續關注信貸質量，以確保我們的投資組合取得最佳成果。我們認為充滿挑戰的環境可能至少會持續到 2023 年上半年，但仍然會有有吸引力的優質公司在尋找風險債務解決方案，這使我們能夠有選擇地增加我們的投資組合、我們承諾的積壓工作和我們的顧問佢道。因此，我們相信我們仍然處於有利地位，可以繼續提供額外的長期股東價值。

With that, I will now turn the call over to Dan.

有了這個，我現在將把電話轉給丹。

Thanks, Jerry, and good morning, everyone. As Rob and Jerry mentioned, the fourth quarter capped off a very solid year for Horizon. We significantly grew our portfolio and once again generated NII that more than covered our distributions while further strengthening our balance sheet and maintaining stable credit quality. To recap 2022, we grew our portfolio by 57% to $720 million. In February, we expanded the capacity of our New York Life credit facility by $100 million to $200 million and extended its maturity date to June 2028.

謝謝，傑里，大家早上好。正如 Rob 和 Jerry 所提到的，第四季度為 Horizon 非常穩健的一年畫上了句號。我們顯著增加了我們的投資組合，並再次產生了超過我們分配的 NII，同時進一步加強了我們的資產負債表並保持穩定的信貸質量。回顧 2022 年，我們的投資組合增長了 57%，達到 7.2 億美元。 2 月，我們將紐約人壽信貸額度擴大了 1 億美元至 2 億美元，並將到期日延長至 2028 年 6 月。

In March, we successfully raised over $34 million in net proceeds from our common stock offering. We further strengthened our balance sheet in June by completing our 6.25% notes offering, which raised over $50 million in net proceeds. In November, we closed $100 million loan securitization with a 7.56% coupon rate, which freed up capacity in our KeyBank credit facility and increased our capacity to make new debt investments. Finally, we successfully and accretively sold nearly 4 million shares through our ATM program during the year, raising over $50 million. This includes receiving net proceeds of approximately $17 million from the program in the fourth quarter, demonstrating our continued ability to opportunistically access the equity markets. We believe our thoughtful and proactive balance sheet management keeps us well positioned for additional growth and shareholder value creation in 2023.

3 月，我們通過普通股發行成功籌集了超過 3400 萬美元的淨收益。我們在 6 月份完成了 6.25% 的票據發行，進一步加強了我們的資產負債表，籌集了超過 5000 萬美元的淨收益。 11 月，我們以 7.56% 的票面利率完成了 1 億美元的貸款證券化，這釋放了我們 KeyBank 信貸額度的能力，並增加了我們進行新債務投資的能力。最後，我們在這一年中通過我們的 ATM 計劃成功並增值地出售了近 400 萬股股票，籌集了超過 5000 萬美元。這包括在第四季度從該計劃中獲得約 1700 萬美元的淨收益，證明我們繼續有能力抓住機會進入股票市場。我們相信，我們深思熟慮和積極主動的資產負債表管理使我們能夠在 2023 年實現額外增長和股東價值創造。

As of December 31, we had $91 million in available liquidity, consisting of $28 million in cash and $63 million in funds available to be drawn under our existing credit facility. In addition, there was only $5 million outstanding under our $125 million KeyBank credit facility and $177 million outstanding on our $200 million New York Life credit facility, leaving us with ample capacity to grow the portfolio. Our debt-to-equity ratio stood at 1.38:1 as of December 31, which was above our target leverage of 1.2:1. Netting out cash on our balance sheet, our net leverage was 1.28:1. Based on our cash position and our borrowing capacity on our credit facility, our potential new investment capacity at December 31 was $171 million.

截至 12 月 31 日，我們擁有 9,100 萬美元的可用流動資金，包括 2,800 萬美元現金和 6,300 萬美元可根據現有信貸額度提取的資金。此外，我們 1.25 億美元的 KeyBank 信貸額度下只有 500 萬美元未償還，我們 2 億美元的紐約人壽信貸額度下有 1.77 億美元未償還，這使我們有足夠的能力來擴大投資組合。截至 12 月 31 日，我們的債務權益比率為 1.38:1，高於我們 1.2:1 的目標槓桿率。扣除資產負債表上的現金後，我們的淨槓桿率為 1.28:1。根據我們的現金狀況和信貸額度的借貸能力，我們在 12 月 31 日的潛在新投資能力為 1.71 億美元。

For the fourth quarter, we earned total investment income of $23 million, an increase of 37% compared to the prior year period. Interest income on investments increased primarily as a result of the higher average size of our earnings debt investment portfolio for the quarter and increases in the variable interest rates on our debt investment. Our debt investment portfolio on a net cost basis stood at $701 million as of December 31, a 14% increase for September 30, 2022. For the fourth quarter of '22, we achieved onboarding yields of 13.3% compared to 12.9% achieved in the third quarter. Our loan portfolio yield was 14.5% for the fourth quarter compared to 16.2% for last year's fourth quarter. Total expenses for the quarter were $12 million compared to $8.7 million in the fourth quarter of '21. Our interest expense increased to $6.2 million from $3.3 million in last year's fourth quarter due to an increase in average borrowings and higher interest rates on our borrowings. Our base management fee was $3 million, up from $2 million in last year's fourth quarter due to an increase in the average size of our portfolio.

第四季度，我們獲得了 2300 萬美元的總投資收益，與去年同期相比增長了 37%。投資利息收入的增加主要是由於本季度我們的收益債務投資組合的平均規模增加以及我們債務投資的可變利率增加。截至 12 月 31 日，我們按淨成本計算的債務投資組合為 7.01 億美元，比 2022 年 9 月 30 日增長了 14%。22 年第四季度，我們的入職收益率為 13.3%，而去年同期為 12.9%。第三季度。第四季度我們的貸款組合收益率為 14.5%，而去年第四季度為 16.2%。本季度總支出為 1200 萬美元，而 21 年第四季度為 870 萬美元。由於平均借款增加和借款利率上升，我們的利息支出從去年第四季度的 330 萬美元增加到 620 萬美元。由於我們投資組合的平均規模增加，我們的基本管理費為 300 萬美元，高於去年第四季度的 200 萬美元。

Our performance-based incentive fee declined to $1.4 million from $2 million for last year's fourth quarter. Net investment income for the fourth quarter of '22 was $0.40 per share compared to $0.43 per share in the third quarter of '22 and $0.39 per share for the fourth quarter of '21. For the full year 2022, we generated NII of $1.46 per share, more than covering our total distributions during 2022 of $1.25 per share. The company's undistributed spillover income as of December 31 was $0.68 per share. We anticipate that our larger portfolio, along with our predictive pricing strategy will enable us over time to generate NII that covers our increased distribution.

我們基於績效的獎勵費用從去年第四季度的 200 萬美元下降到 140 萬美元。 22 年第四季度的淨投資收益為每股 0.40 美元，而 22 年第三季度為每股 0.43 美元，21 年第四季度為每股 0.39 美元。在 2022 年全年，我們產生了每股 1.46 美元的 NII，超過了我們 2022 年每股 1.25 美元的總分配。截至 12 月 31 日，該公司未分配的溢出收益為每股 0.68 美元。我們預計我們更大的投資組合以及我們的預測定價策略將使我們能夠隨著時間的推移生成涵蓋我們增加的分銷的 NII。

To summarize our portfolio activities for the fourth quarter, new originations totaled $104 million, which were partially offset by $4 million in scheduled principal payments and $8 million in principal prepayments and partial pay downs. We ended 2022 with a total investment portfolio of $720 million. Given the macro environment and recent prepayments, we would expect to see lighter portfolio growth in the first quarter than we saw in the fourth quarter. At December 31, the portfolio consisted of debt investments and 60 companies with an average fair value of $686 million, a new portfolio of warrant, equity and other investments in 100 companies with an age fair value of $34 million.

總結我們第四季度的投資組合活動，新的發起總額為 1.04 億美元，部分被 400 萬美元的預定本金支付和 800 萬美元的本金預付和部分還款抵消。截至 2022 年，我們的總投資組合為 7.2 億美元。鑑於宏觀環境和最近的預付款，我們預計第一季度的投資組合增長將低於第四季度。截至 12 月 31 日，投資組合包括債務投資和 60 家公司，平均公允價值為 6.86 億美元，新的認股權證、股權和其他投資組合包括 100 家公司的公允價值為 3400 萬美元。

Based upon our outlook for 2023, our Board declared monthly distributions of $0.11 per share for April, May and June 2023. We remain committed to providing our shareholders with distributions that are covered by our net investment income over time. Our NAV as of December 31 was $11.47 per share compared to $11.66 as of September 30, 2022, and $11.56 as of December 31, 2021. The $0.19 reduction in NAV on a quarterly basis was primarily due to our paid distributions, including $0.05 per share special distribution and adjustments to fair value, partially offset by net investment income. As we've consistently noted, 100% of our outstanding principal amount of our debt investments, their interest at floating rates with coupons that are structured to increase as interest rates rise with interest rate floors. As of December 31, 97% of our debt investments will benefit from additional increases in their applicable base rates.

根據我們對 2023 年的展望，我們的董事會宣布了 2023 年 4 月、5 月和 6 月每月每股 0.11 美元的分配。我們仍然致力於為我們的股東提供隨著時間的推移由我們的淨投資收益覆蓋的分配。我們截至 12 月 31 日的 NAV 為每股 11.47 美元，而截至 2022 年 9 月 30 日為 11.66 美元，截至 2021 年 12 月 31 日為 11.56 美元。每季度 NAV 減少 0.19 美元主要是由於我們的支付分配，包括每股 0.05 美元特別分配和公允價值調整，部分被淨投資收益抵消。正如我們一直指出的那樣，我們 100% 的債務投資未償還本金，它們的利息以浮動利率計算，其結構是隨著利率下限的上升而增加。截至 12 月 31 日，我們 97% 的債務投資將受益於適用基準利率的進一步提高。

This concludes our opening remarks. We'll be happy to take questions you may have at this time.

我們的開場白到此結束。我們很樂意回答您此時可能提出的問題。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Ryan Lynch from KBW.

我們的第一個問題來自 KBW 的 Ryan Lynch。

The first one I had was regarding the transaction of the Advisor. So in my experience in the BDC sector, the external manager has typically been majority owned by the founders and executives. And in this case, that would be you and Jerry. I'm not asking you to reveal any personal financial information, but can you confirm that if you and Jerry are the majority shareholders of the private manager. Can you give shareholders comfort that the liquidity vet in the private manager doesn't signal a potential change in Horizon's management in the mid near or immediate term?

我的第一個是關於顧問的交易。因此，根據我在 BDC 領域的經驗，外部經理通常由創始人和高管持有多數股權。在這種情況下，那就是你和傑里。我不是要你透露任何個人財務信息，但你能否確認你和傑里是否是私人經理的大股東。您能否讓股東感到安慰，即私人經理的流動性審查不會預示 Horizon 管理層在中短期或短期內可能發生變化？

Thanks, Ryan. This is Rob. As we've said in the press releases, and we said in our script, we're all staying and we have long-term strong incentives to continue to grow Horizon, the public company as we also grow the Horizon platform, we're not going to any place.

謝謝，瑞安。這是羅布。正如我們在新聞稿中所說，我們在腳本中所說，我們都留下來，我們有長期強烈的動力繼續發展 Horizon，上市公司，同時我們也在發展 Horizon 平台，我們不會去任何地方。

Okay. The other question I had was, was this deal shop around? Or was this an exclusive talk with Monroe?

好的。我的另一個問題是，這筆交易是否存在？或者這是與夢露的獨家談話？

We're really not going to comment on the process. This was a mutually opportunistic opportunity for them to get into a business that they've been looking at for a long time. And we saw an attractive large platform to move our franchise to -- with strong capabilities to help us grow and raise capital for both the public company and our overall platform.

我們真的不會對流程發表評論。這對他們來說是一個雙贏的機會，可以進入他們一直關注的行業。我們看到了一個有吸引力的大型平台，可以將我們的特許經營權轉移到 - 具有強大的能力來幫助我們為上市公司和我們的整體平台發展和籌集資金。

Okay. I guess then moving to just the fourth quarter results, a couple of questions with that. It looks like you guys made a new investment in -- I'm not sure if I'm saying this right, but Evelo Biosciences in the fourth quarter. It's a fairly large investment of about $45 million. It's marked at par in the fourth quarter. it looked like there were some pretty big misses in some of these trials and they cut their headcount by a huge amount and now the stock is down significantly down to $0.62. Was the results and the trial data that they posted in the first quarter? Was that taken into consideration when you guys made the investment? And is that new data that was published in the first quarter of 2023. Has that been reflected in the fair value of your investment in the fourth quarter?

好的。我想然後轉到第四季度的結果，有幾個問題。看起來你們在第四季度對 Evelo Biosciences 進行了新投資——我不確定我說的是否正確。這是一項相當大的投資，約為 4500 萬美元。它在第四季度被標記為標準桿。看起來在這些試驗中有一些相當大的失誤，他們大量裁員，現在股價大幅下跌至 0.62 美元。他們發布的結果和試驗數據是第一季度的嗎？你們做投資的時候有沒有考慮到這一點？那是 2023 年第一季度發布的新數據嗎？這是否反映在您第四季度投資的公允價值中？

Ryan, this is Jerry. So we -- a fellow did put out a press release on all of the public company. So I can talk about it a little bit. yes, they had a disappointing results on a Phase II trial for dermatitis. They didn't meet the endpoints of the protocol for the clinical trial for that. That was disappointing to all stakeholders and certainly to us, too. But to get to your specific question, yes, we took that into consideration that, that was a possible outcome when we underwrote. This is a platform technology, if you read the press releases, and they just put out another one just the other day, by the way, on clinical update. They actually have a number of ongoing clinical trials, including a Phase II trial for psoriasis, which is a pill, which would be a market change because there is no appeal for psoriasis right now. And they also have a topical Phase III trial for psoriasis underway. So they have multiple clinical trials going on at the company and activity at the company. .

瑞安，這是傑瑞。所以我們 - 一個人確實發布了關於所有上市公司的新聞稿。所以我可以稍微談談。是的，他們在皮炎的 II 期試驗中取得了令人失望的結果。他們沒有達到臨床試驗協議的終點。這讓所有利益相關者都感到失望，當然也讓我們感到失望。但是要回答您的具體問題，是的，我們考慮到了這一點，這是我們承保時可能出現的結果。這是一種平台技術，如果你閱讀新聞稿，他們前幾天剛剛發布了另一篇關於臨床更新的文章。他們實際上有許多正在進行的臨床試驗，包括牛皮癬的 II 期試驗，這是一種藥丸，這將是一個市場變化，因為目前對牛皮癬沒有吸引力。他們還有一項針對銀屑病的局部 III 期試驗正在進行中。因此，他們在公司進行多項臨床試驗並在公司開展活動。 .

Their platform is a technology that addresses diseases related to inflammatory indications, and there is a significant unmet need in that particular area. So there's a lot going on there. I would also note that -- and again, this is public information. The Flagship ventures, while the company is public is a majority shareholder here. They own a significant amount of the company. They've been extremely supportive of the company. They were the ones that actually developed the technology. And in case you're not familiar with Flagship, they're one of the biggest life science investors in the United States back to companies like Moderna and things like that. So the underwriting went well beyond just what could potentially happen in 1 clinical trial.

他們的平台是一種解決與炎症相關疾病的技術，並且在該特定領域存在重大未滿足的需求。所以那裡發生了很多事情。我還要指出——再說一次，這是公共信息。 Flagship Ventures 是一家上市公司，是這裡的大股東。他們擁有公司的大量股份。他們一直非常支持公司。他們是真正開發這項技術的人。如果你不熟悉 Flagship，他們是美國最大的生命科學投資者之一，投資於 Moderna 等公司。因此，承保遠遠超出了一項臨床試驗中可能發生的情況。

Okay. Understood. Just my last question then, is kind of just a broader question on the VC lending landscape, not necessarily specific to your portfolio, but -- with the significant amount of -- with a significant decline in the level of exit activity occurring in the VC markets as well as valuations going lower, how do you foresee the level of new venture investments being made in the space, either to new companies or maybe more importantly, supporting existing companies with additional rounds of capital. Obviously, venture capital has -- there's been a lot of capital raised, but do you think that they're going to be active in deploying it when they're not really receiving any capital or very little capital back from exits?

好的。明白了。那麼我的最後一個問題是關於風險投資貸款領域的一個更廣泛的問題，不一定特定於您的投資組合，但是 - 大量 - 風險投資中發生的退出活動水平顯著下降市場以及估值下降，您如何預見該領域的新風險投資水平，無論是對新公司，還是更重要的是，用額外的資金支持現有公司。顯然，風險投資已經 - 已經籌集了大量資金，但你認為當他們沒有真正收到任何資金或從退出中收回的資金很少時，他們會積極部署嗎？

Yes. That's the right question right there. And there's kind of a tug and pull going on. On one side of the equation, there is a lot of capital committed to VC funds. And ultimately, the VCs need to -- are going to need to get that capital invested. So there's going to be pressure, I think maybe not in the first half of this year, but by the second half to really start doing that. It was actually an interesting article from Bain. I think was yesterday or the day before, they just raised 2 very large funds. And their quote was -- something to the effect -- I'm paraphrasing here that they're going to lean forward into the market right now. They think valuations are good, and they're going to be investing.

是的。這是正確的問題。並且有一種拉扯和拉動正在進行。一方面，有大量資金投向了風險投資基金。最終，風投們需要——將需要投入這筆資金。所以會有壓力，我想可能不會在今年上半年，但到下半年才能真正開始這樣做。這實際上是貝恩的一篇有趣的文章。我想是昨天或前天，他們剛剛籌集了兩筆非常大的資金。他們的報價是 - 某種效果 - 我在這裡解釋說他們現在將向前傾斜進入市場。他們認為估值不錯，他們將進行投資。

So you've got that on one side of it. On the other side, to your also good point, the IPO market is still very much distracted with everything else that's going on in the economy, and there are very few IPOs getting done. And M&A is not actually in much better shape. There has been some M&A activity. One of the things we have noticed. First of all, high-quality companies still are raising capital. We have a handful of companies in our own portfolio that have raised $75 million or more in 2022. As it relates to kind of everybody else, fundraising is still happening, but instead of the -- let's grow our business, raise a big round. It's going to get us through 18 months, and a significant growth [work]. What we're more seeing today is companies being far more focused on getting to cash flow positive. They're raising smaller rounds. So it's not so much getting to a big event like an IPO or an M&A. It's about getting to kind of better market conditions.

所以你在它的一側得到了它。另一方面，對你來說也不錯的一點是，IPO 市場仍然被經濟中發生的其他一切事情分散了注意力，而且完成的 IPO 很少。併購實際上並沒有好得多。有一些併購活動。我們注意到的一件事。首先，優質公司仍在融資。我們自己的投資組合中有幾家公司在 2022 年籌集了 7500 萬美元或更多資金。與其他所有人相關的是，籌款活動仍在進行，但與其發展我們的業務，不如籌集大筆資金。這將使我們度過 18 個月，並取得顯著的增長[工作]。我們今天更多地看到的是，公司更加專注於獲得正現金流。他們正在籌集較小的資金。因此，參加首次公開募股或併購等大型活動並沒有那麼多。這是關於獲得更好的市場條件。

So we see a lot of companies that are raising 6, 9, 12 months of capital where -- a really good market. They may raise more than that and be really focused on the growth part of it. So we are seeing companies still being supported by investors for the most part. There are some idiosyncratic situations that obviously can be impacted by -- in part by kind of the macro situation. But I think that's what we're going to see for the first half of this year. We'll see continued investment. They want to keep their portfolios companies funded and keep them on some kind of track, but it isn't necessarily a big growth track and kind of waiting for better market conditions, better valuations, more M&A and a better IPO market. And that's the world we're living in right now. And so we obviously are aware of both the macro, and who the investors are and things like that. So...

所以我們看到很多公司在一個非常好的市場上籌集了 6、9、12 個月的資金。他們籌集的資金可能不止於此，而且真正專注於其中的增長部分。因此，我們看到公司在很大程度上仍得到投資者的支持。有一些特殊情況顯然會受到影響——部分受到宏觀形勢的影響。但我認為這就是我們將在今年上半年看到的情況。我們會看到持續的投資。他們希望為他們的投資組合公司提供資金，並讓他們保持在某種軌道上，但這不一定是一個巨大的增長軌道，而是在等待更好的市場條件、更好的估值、更多的併購和更好的 IPO 市場。這就是我們現在生活的世界。因此，我們顯然既了解宏觀，也了解投資者是誰以及類似的事情。所以...

(Operator Instructions)

（操作員說明）

Our next question comes from the line of Bryce Rowe from B. Riley.

我們的下一個問題來自 B. Riley 的 Bryce Rowe。

Wanted to ask about balance sheet leverage. Obviously, you all -- you finished the year over your -- over the high end of your target. You're now at 1.28x from a net debt perspective. Just any thoughts on continuing to, I guess, operate at above the target? Do you feel comfortable doing that? Or should we expect you all to try to move back down into that target range over the course of '23?

想問問資產負債表槓桿。顯然，你們所有人——你們在今年結束時超過了——超過了目標的上限。從淨債務的角度來看，你現在是 1.28 倍。我想，關於繼續在目標之上運作的任何想法？你覺得這樣做舒服嗎？或者我們是否應該期望你們在 23 年期間嘗試回到該目標範圍內？

Yes. Bryce, we do watch that very closely and just want to point out that's just a snapshot at a point in time at the end of the quarter. And that will fluctuate up and down throughout the quarter. But being at 1.28x net of cash is a place that, yes, it's slightly above what we say our target is 1.2. But we're very comfortable at that level with the cushion between 1.28 and the regulatory cap of 2x. So I would say you could expect to be around that level throughout 2023.

是的。布萊斯，我們確實非常密切地關注這一點，只是想指出這只是本季度末某個時間點的快照。這將在整個季度上下波動。但是，現金淨額為 1.28 倍，是的，它略高於我們所說的目標 1.2。但我們對 1.28 和 2 倍監管上限之間的緩衝感到非常滿意。所以我想說你可以期望在整個 2023 年都在這個水平左右。

Okay. That's helpful. And then maybe just a bit of a [nit dicky] question around portfolio yield and pricing. When you get a change in the prime rate. Can you remind us when that change in rate goes into effect for your various loans? I would assume that it might vary loan by loan, but just curious if there is a general practice there.

好的。這很有幫助。然後可能只是關於投資組合收益率和定價的一些 [nit dicky] 問題。當最優惠利率發生變化時。您能否提醒我們利率變化何時對您的各種貸款生效？我假設它可能會因貸款而異，但只是想知道那裡是否有一般做法。

You are correct. It does vary loan by loan. But generally, it will be either at the time that the rate changes in effect or the first of the month following the rate change.

你是對的。它確實因貸款而異。但一般來說，它要么在利率變化生效時發生，要么在利率變化後的一個月的第一天發生。

Okay. Okay. And then maybe last one for me. From a -- again, on the yield side of things, when we're looking at where floors are today, do you have a good sense for kind of what the weighted average (inaudible) pricing for on your loans is?

好的。好的。然後也許是我的最後一個。從 - 再次，在收益率方面，當我們查看今天的底線時，您是否對貸款的加權平均（聽不清）定價有很好的了解？

Yes, we do. With a significant amount of our portfolio funded at 3.25% prime rate and the longer period with lower prepayments, we're looking at the floor rate, which will continue to grow as the portfolio changes as we put new loans on at the higher prime. It's around 3.75% on average.

是的，我們有。由於我們的投資組合中有很大一部分以 3.25% 的最優惠利率提供資金，而且預付款項的期限更長，因此我們正在研究底利率，隨著我們以更高的優惠利率投放新貸款，隨著投資組合的變化，底利率將繼續增長。平均約為 3.75%。

Our next question comes from the line of Vilas Abraham from UBS.

我們的下一個問題來自瑞銀的 Vilas Abraham。

Can you guys comment a little bit on the negative migration in the quarter, particularly the couple of one-rated credits that picked up there?

你們能否對本季度的負面遷移發表一些評論，尤其是那裡出現的幾個一級信貸？

Yes. Basically, we had 2 transactions that had kind of idiosyncratic events specific to the companies, one related to a strategic deal that was about to get done and then didn't. So we downgraded that, and it's still very early in the process. So we felt it would be appropriate to market down, and we'll see how that goes. We'll be working on both of those transactions over the coming quarters. Hopefully, we can get something resolved by the third quarter in both of them. So really, it was nothing more than that. And we have to work them. We took a conservative approach relative to the valuation given the macroeconomic circumstances, a better market that may have been better or more opportunities for the companies to do to get something else more positive done, but that didn't happen yet. So that's where we are today with them.

是的。基本上，我們有兩筆交易具有特定於公司的特殊事件，其中一筆與即將完成但後來沒有完成的戰略交易有關。所以我們降級了它，它仍然處於這個過程的早期階段。所以我們覺得降價是合適的，我們會看看情況如何。我們將在未來幾個季度處理這兩項交易。希望我們能在第三季度之前在他們兩個中解決一些問題。真的，僅此而已。我們必須為他們工作。考慮到宏觀經濟環境，我們對估值採取了相對保守的方法，一個更好的市場可能更好，或者公司有更多機會去做其他更積極的事情，但這還沒有發生。這就是我們今天與他們在一起的地方。

Okay. And then maybe just more broadly, as you look across the industries in your portfolio, are you seeing any particular industries more stressed than others? Or are kind of all dealing in a similar fashion with the broader pressures?

好的。然後也許更廣泛地說，當你審視你投資組合中的行業時，你是否看到任何特定行業比其他行業壓力更大？還是所有人都以類似的方式應對更廣泛的壓力？

Yes. Yes, that's a good question. I think the reality is that it's not one specific industry, which, at times in our business, it has because there can be some cycles in life science as an example that is very specific to that market versus more broader macro issues. What we're seeing is that the dislocation in the broader markets is causing kind of a slowdown, take your time take a step back kind of environment where it's not so much that anyone is concerned about a specific market or even a specific company. But they're taking a very slow approach to when the market is going to change. So I think that in this case, just as macro environments have kind of lowered the tide for all boats, I think when the market turns around, you'll see it will raise most boats because there really hasn't been any specific event in any of the markets that we serve that would suggest that something is going on in those markets that are outside of macro dislocation events.

是的。是的，這是個好問題。我認為現實情況是，它不是一個特定的行業，有時在我們的業務中，它有，因為生命科學中可能存在一些週期作為一個例子，它非常針對該市場而不是更廣泛的宏觀問題。我們所看到的是，更廣泛市場的錯位正在導致某種程度的放緩，慢慢來，退後一步，在這種環境中，沒有人關心特定市場甚至特定公司。但是他們對市場何時會發生變化採取了非常緩慢的方法。所以我認為在這種情況下，就像宏觀環境已經讓所有船隻退潮一樣，我認為當市場好轉時，你會看到它會抬高大多數船隻，因為確實沒有任何具體事件我們服務的任何市場都表明在宏觀錯位事件之外的市場中正在發生某些事情。

Okay. And one of the things that founders and venture-backed companies started doing early last year was kind of trying to control their cash burn, right? And as you kind of think about how that's progressed to this point? What inning do you think we're in, in these companies getting to where they need to be to adapt to the new environment here?

好的。創始人和風險投資支持的公司去年初開始做的事情之一就是試圖控制他們的現金消耗，對吧？當您考慮如何發展到這一點時？您認為我們處於哪一局，在這些公司到達他們需要去適應這裡的新環境的地方？

Yes. Again, a pretty good question because usually what happens -- and this is a historical perspective, having been doing this for 30 years. By the time you're asking the kind of questions you're asking, 90% of the cuts and reduction in burn have already taken place. And that's what we're seeing in our market. We saw in the fourth quarter kind of -- the whole venture ecosystem kind of slow down companies were very inwardly focused on cutting their costs, reducing expenses. So we think a lot of that, in fact, has happened -- and even in the new opportunities we're seeing, the companies have already kind of gone through a process where they've cut costs. and they're managing their business, trying with a focus on getting to cash flow breakeven versus on significant growth. So a lot of that has happened. And I think during the first half of this year, most of the transactions that we will see will be companies that have already kind of gone through that. And now the venture capitalist and the investors in these companies that are focused on what the next step is for the company getting back to kind of a growth scenario over time. maybe not in the first half of this year but going forward. And so that's really what we have definitely seen a lot of that already happen.

是的。同樣，這是一個很好的問題，因為通常會發生什麼——這是一個歷史視角，已經這樣做了 30 年。當你提出你要問的問題時，90% 的削減和減少燒傷已經發生。這就是我們在市場上看到的。我們在第四季度看到 - 整個風險生態系統有點放緩公司非常專注於削減成本，減少開支。因此，我們認為實際上已經發生了很多事情——即使在我們看到的新機會中，這些公司也已經經歷了削減成本的過程。他們正在管理自己的業務，努力將重點放在實現現金流盈虧平衡而不是顯著增長上。所以發生了很多事情。我認為在今年上半年，我們將看到的大部分交易將是已經經歷過這種情況的公司。現在，這些公司的風險資本家和投資者關注的是下一步是什麼讓公司隨著時間的推移恢復到某種增長情景。也許不是在今年上半年，而是在未來。所以這確實是我們已經看到的很多已經發生的事情。

Okay. That's helpful. And if I could squeeze one more in here on the synergies with the advisor. I think you mentioned that there are some expense saves that could be realized here. Can you quantify that at all or give any timing around that?

好的。這很有幫助。如果我可以在這裡再擠一個關於與顧問的協同作用。我想你提到過這裡可以節省一些費用。您能否對此進行量化或給出任何時間安排？

Yes. The answer really is, not yet. But the transaction just announced spent a lot of time working on it, but we don't have any definitive answers for that at this time.

是的。答案確實是，還沒有。但是剛剛宣布的交易花了很多時間在上面，但我們目前還沒有任何明確的答案。

Ladies and gentlemen, there are no further questions in the queue. I would like to turn the conference over to Robert Pomeroy, Chairman and CEO, for closing comments.

女士們，先生們，隊列中沒有其他問題。我想將會議轉交給董事長兼首席執行官 Robert Pomeroy 以發表閉幕評論。

Thank you all for joining us this morning. We appreciate your continued interest and support in Horizon, and we look forward to speaking with you again soon. This will conclude our call. Thank you.

感謝大家今天早上加入我們。感謝您一直以來對 Horizon 的關注和支持，我們期待很快再次與您交談。這將結束我們的通話。謝謝。

Thank you. The conference of Horizon Technology Finance Corporation has now concluded. Thank you for your participation. You may now disconnect your lines.

謝謝。地平線科技金融公司會議現已結束。感謝您的參與。您現在可以斷開線路。